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Business Advice

Avoid Common Mistakes in Creating a Business Plan

by Maya Mah
11 December 2023

Creating a business plan is a crucial task for every aspiring entrepreneur. This comprehensive document serves as a roadmap, detailing your business’s goals, strategies, and financial expectations. However, during this process, many entrepreneurs stumble into common pitfalls that can potentially jeopardize their venture’s success.

Ready to turn your business idea into a reality? Our Business Plan Builder tool simplifies the process, helping you create a solid plan and increase your chances of securing government funding in Ontario.

This article highlights these errors and provides comprehensive guidance on avoiding them.

Mistake 1: Neglecting Comprehensive Market Research

Thorough market research lays the foundation for any successful business plan. Failing to understand your target market, competitors, and industry trends can lead to a misguided strategy. Therefore, it’s essential to invest significant time and effort into analyzing market data. This will provide you with vital insights into your customer preferences, product or service demand, and any potential market gaps that your business could fill.

Mistake 2: Not Defining Clear Goals

A business plan without clear objectives is like navigating a ship without a compass. You must define specific, measurable, attainable, relevant, and time-bound (SMART) goals for your venture. These goals could range from increasing revenue and expanding to new markets, to improving customer satisfaction or developing a new product. Defining clear objectives offers a focused direction for your business and provides benchmarks to measure your performance.

Mistake 3: Ignoring Competitive Analysis

Ignoring the competition can lead to missed opportunities and unanticipated threats. It’s crucial to identify your direct and indirect competitors and understand their strengths, weaknesses, strategies, and customer base. By conducting a comprehensive competitor analysis, you can carve a unique niche for your business in the market and devise strategies to gain a competitive advantage.

Mistake 4: Unrealistic Financial Forecasts

Many entrepreneurs fall into the trap of overly optimistic financial forecasting. Overestimating revenues and underestimating expenses can create inaccurate financial plans and set unrealistic expectations for investors. It’s essential to conduct a thorough financial analysis based on industry standards, market trends, and expert advice to craft accurate financial projections. Your financial plan should include all possible costs, such as overheads, marketing, personnel, and capital expenditure.

Mistake 5: Absence of Contingency Plans

The dynamic nature of business brings its share of risks and uncertainties. Ignoring potential challenges in your business plan can expose your venture to these risks. Entrepreneurs should identify potential risks and devise robust contingency plans to tackle unforeseen circumstances like economic downturns, supply chain disruptions, or changes in market trends.

Mistake 6: Unprofessional Structure and Formatting

The presentation of your business plan matters as much as its content. An unorganized or poorly formatted plan can undermine your credibility in the eyes of potential investors. Ensure your plan is well-structured, easy to follow, and professionally formatted. Include a table of contents, clear headings, and subheadings, and utilize charts and graphs to support your data visually.

Mistake 7: Overlooking Your Unique Value Proposition

Your business plan must articulate what sets your product or service apart from the competition. Clearly defining your unique value proposition is crucial as it identifies your venture’s unique strengths and selling points. This can prove particularly influential when attracting potential investors or customers.

Mistake 8: No Clear Marketing or Sales Strategy

Revenue is the lifeblood of any business, and your plan should detail your strategies for customer acquisition and retention. A vague or absent marketing and sales strategy can cast doubt on your revenue projections. Therefore, outline clear strategies for reaching your target market, capturing leads, converting prospects into customers, and retaining those customers for repeat business.

Mistake 9: Neglecting Legal and Regulatory Considerations

Ignoring legal and regulatory factors in your business plan can lead to significant legal troubles in the future. These can include issues related to business licensing, insurance, intellectual property protection, employment laws, tax regulations, and industry-specific regulations. Be sure to conduct thorough legal research and include it in your plan.

Mistake 10: Missing an Executive Summary

The executive summary is often the first section of your business plan that investors will read. An engaging and well-written executive summary can entice readers to explore your business plan further. Failing to include an executive summary or crafting a poorly written one can deter potential investors or lenders.

Mistake 11: Not Defining the Management Team

Investors often consider the management team as one of the most crucial elements of a startup. Your business plan should include a section detailing your team members, their roles, experiences, and how their skills contribute to your venture’s success. This will reassure investors about the competence of your team and their ability to execute the business plan effectively.

Mistake 12: Ignoring the Exit Strategy

While no entrepreneur wants to think about exiting their business at the start, investors will want to see an exit strategy. This outlines how they can get a return on their investment. Your exit strategy could include selling the business, merging with another company, or a public offering.

Creating a successful business plan involves more than simply documenting your vision. It requires comprehensive research, clear goal setting, competitive analysis, realistic financial planning, risk management, and professional presentation. By avoiding the common mistakes highlighted in this article, you will establish a solid foundation for your business, enhancing your prospects of achieving your goals and convincing investors of your venture’s potential.

Funding

How to Start a Small Business: Leveraging Government Funding for Ontario Startups

by Tyler Bailey
13 November 2023

Aspiring entrepreneurs are often confronted with various challenges, with the most critical being securing adequate funding. This comprehensive guide provides invaluable insights into initiating a small business in Ontario, Canada, through strategic government funding channels.

Inspiring Examples: Businesses Built on Government Funding

Several successful businesses in Ontario owe their start to government funding. Take Clearbanc, for instance, a Toronto-based tech firm that gained an initial boost through the Industrial Research Assistance Program (IRAP). Their robust business plan focused on an innovative data-driven funding model resonating with the program’s objective of fostering technologically-driven solutions.

Another example is Ecobee, an IoT company specializing in smart thermostats. They received financial backing from the Ontario government through the Ontario Emerging Technologies Fund, effectively catapulting their business into the mainstream market.

Government Funding Programs and Business Plans

Ontario hosts numerous funding programs emphasizing a strong business plan in its selection criteria. Programs such as the Ontario Scale-Up Vouchers Program and the Ontario Small Business Support Grant prioritize well-detailed business plans, seeing them as indicators of long-term sustainability and financial viability.

Insights from Government Officials

Government officials regularly underscore the value of a solid business plan in securing funding. A case in point is the remarks by Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, who stated, “Our priority is to support businesses with a clear, feasible plan demonstrating the potential for advancement in their industry.”

Crafting an Effective Business Plan: Do’s and Don’ts

When preparing a business plan for government funding, avoid over-optimistic financial projections and ensure your project is based on accurate market research. Experts recommend focusing on clearly defined business objectives, realistic financial projections, detailed market analysis, and a well-articulated marketing strategy. Additionally, a robust risk mitigation strategy is essential to convince funding entities of your venture’s viability.

Expert Recommendations

According to Jake Jorgovan, a renowned business consultant, “Your business plan should tell a compelling story about your business, explaining who, what, when, where, how, and why.” It’s crucial to articulate your unique value proposition, identify your target market, and provide a clear plan on how your product or service will meet the market needs.

Resources for Crafting Business Plans

Various resources can assist entrepreneurs in crafting compelling business plans. Organizations like the Ontario Network of Entrepreneurs offer toolkits and free online courses on business planning. The Business Development Bank of Canada (BDC) also provides an interactive business plan writer on its website.

Revising and Updating Your Business Plan

Once you’ve received feedback from funding entities, it’s critical to revise and update your business plan accordingly. Consider engaging a business advisor to ensure your revised plan aligns with the funder’s feedback and industry best practices.

Starting a small business in Ontario may seem daunting, but with the right resources and a well-crafted business plan, entrepreneurs can leverage government funding to bring their dreams to fruition. As we’ve seen from successful businesses like Clearbanc and Ecobee, government funding can provide the necessary boost to get your business off the ground. With diligent planning and persistence, your small business can be the next big success story.

How to start a business with no Money
Funding

How to Start a Business with No Money in Ontario

by Tyler Bailey
11 October 2022

It’s both thrilling and difficult to launch a new company in Ontario.

Many factors are at play, making it hard to know where to begin. You probably don’t have a tonne of spare cash to put into your company, if you’re like the average person. You can still launch a successful enterprise, though. It’s possible to launch a successful company with minimal funding by relying on one’s ingenuity and determination.

Here’s how:

1. Find a Low-Cost Location

One of the first ways to save costs is on the location of your office or storefront when you’re just getting your business off the ground on a tight budget. You’re one step ahead of the competition if your company doesn’t require a storefront. However, there are still options available if you require a physical location for your business.

You could, for instance, settle for a rental unit in a shopping mall or office building that is shared with other businesses. This is a terrific option for obtaining suitable office space without incurring the full cost on your own. You can also try to find a space to sublet or even to barter with another business owner.
If all else fails, a home office can do the trick; just make sure you have a dedicated work area that is separate from your living area.

2. Use Free or Low-Cost Marketing Strategies

The days of companies needing to spend thousands on advertising campaigns to get noticed are long gone. To get their names out there, firms can take use of a wide variety of currently available free or inexpensive marketing tactics.

Connecting with your audience and fostering loyalty among your present clientele is a breeze on social networking sites like Twitter, Facebook, and Instagram. Connecting with other companies in your field is another great use for LinkedIn. There are many low-cost social media management tools available if you don’t have the time or energy to handle your own accounts’ administration.

Furthermore, content marketing is a great (and cheap) approach to get people talking about your company by giving them knowledge they can utilise. Blog entries, infographics, and videos are all excellent methods of interacting with and educating your target audience.

3. Utilise Free or Low-Cost Business Tools

There are probably a lot of tools that can help you operate your business, but that doesn’t mean you have to spend a fortune on them. Thanks to recent technological developments, there is a plethora of low- or no-cost resources for entrepreneurs.

For example, Google Suite offers businesses a powerful (and free!) suite of productivity tools including Gmail, Calendar, Docs, Sheets, Slides, and more.

Canva is another great (and free!) tool that businesses can use for graphic design needs like creating flyers, posters, logos, and social media graphics.

Hootsuite is an affordable ($19/month) social media management tool that businesses can use to help save time by scheduling social media posts in advance and tracking engagement metrics.

By utilising free or low-cost tools like these, you can stretch your startup budget further and allow yourself room to reinvest earnings back into the business as it grows.

Bonus Tip: Use Government Funding

Another way to start a small business in Ontario without any money is to get capital, or funding from the Ontario government, or the federal government of Canada

If you’re looking for government funding to help start your small business, there are a few different options to choose from.

Government Loans and Government Grants

Business loans and grants are two of the most common types of government funding available to small businesses. A business loan is exactly what it sounds like—a loan that the government provides to a business to help them get started or grow. A business grant, on the other hand, is money that the government provides to a business with no strings attached—meaning there’s no need to pay the money back.

Tax Credits / Breaks

Tax credits are another great way for small businesses to get financial support from the government. These credits can be claimed for expenses related to things like research and development, hiring new employees, or purchasing new equipment.

You can see these funding options in the Funding Database. Access all government grants, government loans as well as tax breaks and credits for your small business.

It’s entirely possible—and not nearly as daunting as it might seem—to start a business with very little money. With some creativity and resourcefulness, you can get your fledgling operation off the ground without breaking the bank!

By following the tips outlined above—finding an affordable location, utilising free or low-cost marketing strategies; taking advantage of free or low-cost business tools—you’ll be well on your way towards setting up a successful small business in Ontario!

Daycare Startup Funding Ontario
Funding

$73,500 Ontario government funding support for daycare start up.

by Tyler Bailey
28 March 2022

Thousands of business owners across Ontario and throughout Canada get funding from the government to assist with their small business startups and expansion costs.

While there are still many unknowns when it comes to the government funding within the general public, the small business owners who do apply and take advantage of the available funding, can greatly benefit.

The Ontario government has various funding programs including government grants, government loans, tax brakes and tax credits that are made available to help small business owners succeed.

The below success story information comes from an Ontario based day care start up center. A business owner who previously considered government funding could be non existent.

Please review the Q and A, the back-and-forth with an Ontario startups expert regarding the process that the business owner took to obtain $73, 000 through the Ontario government to assist with their small business startup.

Where is your small business located?

Our business is in Milton Ontario.

Briefly explain your business and what you do?

We are a home base day care provider. Our daycare spans across 2 homes that are now connected in order to give are kids a greater space to learn and play. We provide at home day care services, to individuals age 1 to 11, mainly focusing focusing on those living in Milton and the Halton area.

When did you start the business?

The daycare was something that we always wanted to do. The idea probably started about 10 years ago but due to the insufficient funds we have to take some time to properly plan it and make all the zoning permits and everything to ensure that we can actually do something about this.

We really got into it after the pandemic started as we realized that there’s a lot of things going on out there in the world that a lot of people need to take care of providers and we wanted to be a part of it and to help these kids and parents. So we started really digging deep and trying to start small and see where it takes us our business started late 2020.

What did you need to make this happen?

We already owned the 2 homes but we needed to cover some of the renovation costs to connect the 2 homes and obviously to purchase the needed supplies and the equipment that we’re gonna need for actually launching the day care and getting ready for the children to come in place and be safe.

We had estimated costs between $50,000 a $100,000. Both me and my husband were laid off due to the pandemic, and getting these funds in order was a little bit difficult at the time, which is also when we started looking at government funding options.

What did you think about government funding prior to this?

To be honest I didn’t think it was possible. A lot of people we’re talking about the CERB, and other Covid related government funding programs, and I seen what all the businesses are going through so I didn’t think much of it. Didn’t believe government funding exists aside from what was being provided to everybody at this time. I didn’t think that somebody like me would be able to get money to start a daycare.

How did you hear about Ontario Startups?
We went to the bank to ask for a loan, and they said because we are not working we’re not getting any money from them. This was pretty disappointing to hear because both me and my husband had great jobs great credit and everything was going fine before the pandemic hit. The banks were no use at all. We looked online trying to figure out how to start a business without these costs involved and we continuously kept seeing Ontario Startups.

We noticed on the website that they dealt with daycares and other startups in the past so we just decided to contact.

How did Ontario Startups help you?

With Ontario Startups we worked on our business plan. By doing this it seemed to get us a bit more excited about what we wanted to do and it almost made it real. Working with Ontario Startups pushed us into thinking more about the business and about the small details and all the costs that we could think of. This was one of the 1st steps. When this was done our expert actually helped us find funding. He went beyond what was part of what they do I believe and he kept giving me ideas and sharing his past experience in dealing with other day cares. I think because the expert was actually a parent, he understood exactly where we’re coming from and wanted to offer that extra attention to us.

How much did you apply for in terms of funding for your day care?

Ontario Startups provided us with 3 programs that we could apply for there were non bank programs.

Under their recommendation we had to break down the expenses that we were applying for because one of the programs only funded renovations innovations in a small business. To ensure that we could do what we wanted to do we needed about $25,000. That is what we applied for within this program. The other $53, 000 we applied through 2 other programs that were recommended to us. One program denied our funding request due to not having a job and not being able to show incoming revenue as of yet as we’re a startup.

The 3rd program we asked for $35,000 to cover the cost of equipment purchase and just to get the business ready, however our expert recommended due to the denial of the initial program that we should be asking for more. We changed our ask to $60,000. We were approved for $53,000. Altogether we ask for $85,000 and we walked away with $73,000 which has been more than enough to ensure that we get up and running.

How difficult was the application process?

Applications were a nightmare. If I was doing this on my own I wouldn’t have done it. Luckily I had
the team there by my side helping me with each step and away. I was pretty annoying about it, asking a million questions but they helped and they got me the funds.

How did the money you got help you start your business?

The money made us start the business. It ensured that we have everything that we needed so we can actually launch and start promoting our business. After receiving the money and took 6 months to make sure that all the renovations were done and though we had everything in place before we opened our doors.

How is the business going now?

We are just ending our 1st year. We are fully staffed and we have plenty of kids and a great program in place the parents seem to love. We are in a great location in Milton and I have to say our day care business is booming.

Your comments or advice for others looking for government funding or starting a small business in Ontario:

It’s never easy to start a business. It’s never easy to stop working have no income coming in and think how am I going to start something that’s not gonna make me money for a while. Definitely scary. If it’s something that you dream about and something that you want to do no reason to delay. We did this for 10 years and we kept the delaying for no reason. I just wonder where would we be today if we started 10 years ago. Government funding exists, clearly, and we were able to benefit from it and if you have a good business idea and you have the team such as the Ontario Startups behind you, no reason why not try
applying for funding. Stay away from banks.

Ontario Government Funding For Franchise
Funding

Ontario Government Funding To Buy a Small Business or Franchise

by Tyler Bailey
11 March 2022

Ontario is a top province in Canada with 15 million residents – no wonder it’s the business capital of Canada.

The Ontario government funnels money into the economy to help boost entrepreneurship and to ensure that Ontario remains the business hub.

With that in mind, the Ontario government has a number of funding programs that help individuals purchase a small business or a franchise.

These funding programs, often categorizing this type of transaction as business acquisition exist to help Ontario residents; and those coming into Ontario with the purchase of a proven business model such as a franchise; or an existing business that already has traction.

Why, you ask?

Well, the Ontario government provides funding back into the province. Having additional businesses helps stimulate the economy by creating jobs. These jobs, result in additional paid taxes, creating a cycle that helps Ontario thrive.

Ontario funding programs to help with business acquisition

The various Ontario government funding programs that can help with the business acquisition will often come in the form of a government loan. While certain government grants exist, for business or franchise purchases, you are mainly looking at a government loan.

These loans can often be far greater than any business loans via banks or private lenders and can have better conditions and terms – to help you as a new potential business owner to succeed.

So, if you are considering buying a franchise, a Mr. Lube Oil Change Franchise let’s say; you may utilize the government options to help you take over this type of business.

If you are considering buying Joe’s Pizza Shop down the street; you may be in luck and potentially be eligible for a government loan to help with the acquisition.

While not everyone is eligible for a government loan, the more you know about the different types of government funding options in Ontario, the better.

The different types of government loans

When applying for a government loan to purchase a business or a franchise in Ontario, the different options may include; standard government loans that come with low interest or no interest. In addition to that, you may be able to take on a guaranteed government loan, or a conditionally repayable loan.

Each of these government loans comes with different advantages.

Low Interest or No Interest Government Loans

When considering buying a new business or if you want to purchase a franchise in Ontario, a government low interest or no interest loan may be the right option for you.

It is there to help simplify the process of acquiring the business by giving you the needed capital. Unlike a traditional bank loan, these Ontario government loans may be more favorable in terms of interest and repayment options.

Guaranteed Government Loans

The guaranteed government loans are a great way to get the needed capital to buy a business in Ontario. No matter if the business is a proven system such as a franchise, or an already operational small business; a guaranteed loan from the Ontario government may have our back.

The Ontario government or the agency that you are approved for would be the co-signer on your loan. This gives you an extra layer of security and protection with the borrowed funds as it means that the agency may be on the hook for a percentage of the loan if things don’t go as planned.

Certain government-guaranteed loans can cover as much as 85% of the borrowed money.

Conditionally Repayable Loans

Another great funding option to consider when buying a business in Ontario. The conditionally repayable loans will help you as a small business borrow the needed money to startup and launch your business – to start collecting the needed cash flow, allowing you time to pay back the needed loan.

The conditions of these loans are often negotiated based on your needs but can range from long terms loans to no repayment until profitable..etc

No matter the type of funding you decide to apply to remember that the key to any successful funding application is to have a solid business plan in place.

If you are buying a franchise, the funding agencies may be more lenient towards your application as they know that the chances of success with a franchise will be greater. Contacting your franchise to obtain a business plan, projected financials may be helpful so you don’t have to do it all.

If however, they don’t provide this to you, using a tool such as the Business Plan Builder may be of help to get the perfect business plan in place to help you apply for funding.

On the other hand, if you are buying an existing business in Ontario, the process may be the same. Obtain the business plan from the seller; or at the very least the financials to help you do your due diligence, but also use it to apply for any government-related funds to help with the acquisition.

Tips to remember:

To help you obtain the needed funds to assist with the business or franchise acquisition, follow the below tips for improved chances of success with the funding but also with your business takeover:

  1. Ensure you are not asking for 100% of the funds.
  2. Don’t assume that the funding agency knows the business or franchise. Have a plan ready.
  3. Remember that many funding agencies can help you after you take over the business as well; with various expenses that are part of operating the business.

If you need assistance in locating funding options via the Ontario government, speak to an Ontario Startups expert to see how much you may be eligible for to help you take over a business or franchise.

Small Business Government Funding Uses
Funding

20+ Small Business Funding Uses that the Ontario Government Funds

by admin
7 March 2022

20+ Small Business Funding Uses that the Ontario Government Funds

If you have ever wanted to start your own small business in Ontario, it is crucial to know that various government funding programs exist that help fund small business owners across Ontario.

These funds, government-provided, come via the various levels of government, including local government offices; the Ontario provincial government, and the federal government of Canada. They all funnel money towards small businesses and entrepreneurship in the province.

Knowing how to take advantage will give you a step up towards success by securing the needed funds for your business.

So; what does the Ontario government cover in terms of small business funding?

While the funding needs vary from business to business, the various agencies that fund Ontario small businesses focus on a number of activities, as they categorize them into 20+ different sections of “acceptable funds use”.

These 20+ different funding uses are not the only ones, but most others will fall into one of the mentioned categories.

20 Small Business Funding Uses that the Ontario Government Funds

Before you can apply for any funding in Ontario; be sure that you have a solid business plan completed. Your business plan should clearly explain your business model, show your business potential, list out the projected financial statements as well, breakdown your funding needs into the below-listed options:

  • Acquisition
  • Business Development
  • Training
  • Consulting Services
  • Financing Services
  • Product Development
  • Job Creation
  • Equipment
  • Trade Shows
  • Exploration
  • Evaluation
  • Business Planning
  • Operating Capital
  • Renovations
  • Expansion Capital
  • Marketing
  • Business Startup
  • Productivity
  • Research
  • Wage Support

Most funding needs that you as a small business owner may have, will fit into one of the above-mentioned funding uses.

Funding Tip:

When you are asking for funding from a government agency, it is always a good idea to break down your funding needs into the specific funding uses that are listed above. The more you can break down your needs, rather than ask for a lump sum, the more options you may be considered for.

As you apply for government funding, the various uses that the Ontario government may fund is crucial to know and understand; not only in your search for funding but in the application process as well.

It is also a good idea to avoid falling for the most common funding mistakes.

Common Government Funding Mistakes (and how to avoid them)

Simple mistakes are often the cause of many failed funding applications.

The Ontario government has a number of funding options available to help small business owners. In fact, there are hundreds of funding programs available and they constantly change as well.

The # 1 mistake business owners make when searching for funding is searching for a “too specific”, or “not specific enough” funding need.

Example:

I need $10,000 to start my business.

  • While this seems to be a very simple and easy-to-understand approach, a funding agency may look at it and say “no”. Why? Well, since there are many different funding agencies, not all fund the “startup process”. Some fund marketing costs, some equipment purchase, some cover wages of staff and potential employees..etc”; but not all do the same thing.

A better way to approach this type of scenario is to breakdown your funding needs:

I need $10,000 in funding to start my business. With that, the following breakdown will help me accomplish my goals. I need $2,500 to cover training costs; $5,000 to purchase equipment and another $2,500 to pay for some marketing expenses.

The same idea; but broken down, utilizing the funding uses mentioned. This can allow you as a small business owner to apply for 3 potential program options. Options that cover marketing; training costs and equipment purchase.

Another example of a common mistake is asking for funding and being too specific.

I need $5,000 in funding to pay for the ladder on my work van.

If you are to contact any funding agency in Ontario and ask for funding to pay for a ladder on your work van; you will most likely be denied – or explained that there is no funding for that.

They are not wrong. There is no funding for a ladder on a work van – but there is funding for equipment purchase.

The key to a successful funding application and funding search is patience and a choice of words.

Don’t be too specific and don’t be too broad in your request.

If you need help and guidance, asking an expert at Ontario Startups what you may be eligible for is a good idea.

Ontario Small Business Funding
Funding

Ontario government funding for small businesses

by Tyler Bailey
24 February 2022

If you’re planning on starting a small business in Ontario, you are in luck.

The Ontario government provides government funding for small businesses across the province.

These funds considered government-provided are available and are there to help you start up, expand, and to grow your business while boosting the Ontario economy.

The goal of the government funding provided by the provincial-level government and the federal-level government is to create a stronger economy while boosting entrepreneurship and creating jobs.

In other words, you get the government money, use it for your business, succeed and hire staff, and then pay taxes.

It is a circle that keeps the Ontario government working to support all entrepreneurs.

Types of Ontario government funding for small businesses

The Ontario government provides funding to small business owners across the province in various forms of funding.

The most common include government grants, government loans, tax breaks and credits, and other contributions.

While there are other types of government funding available these are the most common and the most approved options for small businesses.

Ontario government funding

A government grant, for example,  is considered one of the best types of government funding that you’re a small business can get.

The different funding programs all have their own benefits to a small business owner.

In most cases, a government grant is free money. Money that you don’t have to repay back after you’ve received it and you can use it towards your various start-up costs and expenses.

A government Grant is also one of the most competitive types of programs to get into.

On the other hand, you have government loans which also vary but are far better than any bank loan.

These government loans can often come with no interest, low interest or have terms that are negotiable.

As a small business starting up obtaining a government loan from the government can help secure your business.

Certain government loans are also guaranteed loans. This means that the government of Ontario acts like a cosigner for your business.

If things were to go south, the government-guaranteed loan can have your back by paying as much as 85% of it for you.

Lastly the tax breaks in the credits.

These are excellent programs, despite often not being considered so due to the fact that you need to spend the money before you apply for a tax credit, but technically they are grants as well.

Tax breaks or tax credits, just like the ones when you do your taxes, can be applied to at the end of the year and you may be refunded an amount to cover certain expenses you had.

Applying for government funding in Ontario can ensure your success. If you need guidance and assistance on finding the most available government funding options consider using the funding database Provided by Ontario Startups.

Who is eligible for government funding in Ontario

All Ontario residents as long as they are starting a business or are looking to expand their business may be eligible to apply to government funding.

Certain factors may cause an issue, so speaking with the business expert or a funding expert and Ontario Startups we’ll ensure that you’re on the right track.

The certain expenses that you may be eligible to have covered by the various government funding programs in Ontario include the below:

  • The initial start up costs
  •  Your marketing budget
  •  Your stuff wages
  •  Training costs
  •  Your inventory and supplies
  •  Your equipment costs
  •  Certain renovation expenses
  •  And much more

If you are unsure which expenses the Ontario government options can fund , contact an Ontario Startups expert. They are there to assist you and to help you find available government funding programs in Ontario.

What is needed to qualify for a government funding program in Ontario

The requirements of applying to government funding in Ontario depend on the program.

Each government funding program in Ontario has its own criteria that you must follow in order to qualify.

Some of the most common criteria include having a strong business plan, being in the right province or location, having a business in the right industry, providing a detailed breakdown of exactly what you need funding for.

By following these few criteria’s you will be setting yourself apart from the rest and will remain on par with what is expected for most government funding agencies.

How much can you get in government funding in Ontario

As a small business starting up in Ontario the costs that you need to have covered will vary. Depending on how you break down your expenses based on what you need funding for you may be eligible for certain amounts from a number of programs.

Some business owners ask for a few $1,000, while others ask for a few $100,000. So, it all depends on the type of business, financials and funding requirements.

The Ontario Government has a number of great programs to help small business owners is succeeding. Take advantage of what is available and work with the funding expert to maximize your potential and to achieve success with your Ontario small business.

Your Government Funding Questions
Funding

Your government funding questions answered

by Tyler Bailey
4 February 2022

The Ontario government provides funding to small business owners and entrepreneurs across the province. In addition to that, The Canadian federal government and the various local governments provide funding as well.

As a small business owner trying to find these funds, it might get a bit confusing or time-consuming.

The funding available is scattered across over 1,500 different programs. These programs come from the various levels of the government, each with its own website, requirements, and a unique process to apply.

Getting expert help to find the available government-finding programs is definitely recommended.

Using tools such as the Funding Database provided by Ontario Startups will ensure that you have all of the options in one place. Saving you time, And a lot of frustration.

With all of the confusion around government funding programs in Ontario, below is a list of questions that commonly come in, so we thought we’d share.

Does government funding really exist in Ontario?

Government funding is real.

Each province has its own funding program. These programs are set in place to help boost the economy.

The government hands out the money in order to help you succeed with your business and then in return, they expect you to hire staff and to pay tax.

This creates a cycle. A cycle that is ongoing and helps support entrepreneurship across the province each year.

Funding comes in various forms including government, government loans, and tax breaks.

How much funding can my small business in Ontario get?

As a small business in Ontario applying to any government funding program you should go in with a few prerequisites. The most important one is to know how much funding you actually need.

While there is no maximum or minimum that a funding agency can provide you unless they specify, your funding needs should be based on your business plan and on how much you need to succeed.

While applying for a million dollars would be ideal, it does not mean that this is what you actually need within the 1st year of your business. Consider your start-up cost and evaluate what you need money for urgently. This is what you apply for first.

Funding agencies often have limits that generally sit around $25,0000. However, if asking for funding, it’s a good idea to break down your funding requirements into smaller amounts that are specific, so that way you can apply to multiple funding programs covering a larger range if needed.

How do I know if I will be eligible for any government funding in Ontario?

To find out if your small business in Ontario is eligible for any funding, you have to access the government funding program requirement.

Unless you know which program to apply to, working with an expert will help determine this.  Each government funding program has its own requirements that have to be met in order for you to be eligible.

Certain factors such as your location, your industry, and the specific funding needs that you have will be the ones determining your likeliness to apply successfully.

Why would the government give my business money?

The government supports entrepreneurship. With that in mind, the government gives funding to small business owners that are looking to succeed. In return, you spend the money locally, you hire local staff, you pay your taxes, and this cycle helps boost the economy, and ultimately creates a new round of funding for another business to obtain.

What if there is no program available for my business?

If you are looking for government funding in Ontario and you have no success finding any applicable programs, it doesn’t mean that they’re not there.

The government agencies often don’t promote their funding programs, and this means that they are extremely difficult to find.

But in the case that you are not eligible for any of the options, the good news is that the funding programs constantly change. So if you don’t qualify, tomorrow is another day.

Working with the expert will ensure that you stay on top of the funding search and then you are matched to programs that may help with your funding needs.

What is the maximum that I can get from the Ontario government?

There is no maximum amount that you can get in government funding. At least this is not very clear as each funding agency has its own maximum figures.

To ensure optimal success and then you get as much as you need, break down your funding needs and apply to multiple funding programs that cover each of those needs individually.

After I apply for funding how soon can I get the funds?

Once you have successfully completed a government funding application, and you have submitted it, it can take anywhere from 2 to 6 weeks on average to hear back.

The speed depends on a number of factors including the time of the year, program deadlines, number of applicants, and more. All of these factors can impact the speed of your applications and fund approval.

Do I have to pay back the government money?

Depending on the type of government funding you are applying to, it may require repayment.

The money that has to be repaid will come in the form of a government loan or similar.

Tax breaks, credits, and government grants are often the non-repayable funds.

Keep in mind however that if you use the government funding incorrectly, try to fool the system, you may be asked to pay all of the funds back with a penalty.

What do I need to have in order to apply to a government funding program?

In order to apply for government funding successfully, you have to complete the funding application provided by the agency. As each agency has its own criteria, these are the items your small business must meet in order to qualify.

Remember the key to a successful application starts with a completed business plan.

These are just a few of the questions that are our members have in regards the government funding for small businesses in Ontario.

If you have any questions of your own, be sure to ask.

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