Small Business Resources

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Warren, I am currently an engineering student with a focus towards Nanotechnology and I am strongly inclined towards entrepreneurship. As a potential start-up business, me and a classmate (A good friend and partner) are thinking about starting a consulting business for start-ups and relevant tech companies. Although I realize that good consulting firms consist of experienced individuals, I feel that we can be successful due to the field being relatively new at the moment. Am I being too optimistic or is there a high probability of success?
– Uzair

Based on the information you’ve provided, it’s a little difficult to provide a great deal of guidance, but let me point out a couple of things... Read More

I’d like to get your opinion on starting a real estate business. I have experience in purchasing properties, renovating them and then reselling them, but now I want to register the business and I’m not sure where I should start.
– Ron

Real estate development and renovation work is pretty interesting, fun, risky and potentially lucrative. I wish you well. I don't know enough about your business to get very specific but there are clearly some considerations you will need to take into account... Read More

I have a restaurant in a food court that has been operating for the last 2 years. It hasn’t been successful and I now have a debt of $100,000 with more piling up from my credit cards. In short, I'm sinking in debts very quickly and don't know what to do.
– Kashif

That is a tough challenge and I sympathize with the position in which you find yourself. It’s difficult to give you very specific advice, but here are some questions to think about and a few suggestions. Read More

What do I do to minimize my tax obligations?
– Various

This is where I go on a bit of a rant. I have received dozens of questions about tax issues and how to minimize tax consequences. I have 2 basic responses to this... Read More

In exchange for three months of working capital, I have been offered 50% of a company. I am hoping to make it profitable as it’s currently losing money. Now that I am an active partner responsible for the day to day operations, would it be reasonable to request a salary or reimbursement for expenses even though the company is still in the red? Or would I be expected to forgo a salary and expenses until the company becomes profitable?
– Al

Interesting circumstances you're in. It brings to mind a general principle that I wish every entrepreneur could get into their bones... Read More

I have a few ideas. I also have a business that I wish to continue with and therefore wish to sell my ideas. One of the big ideas is to do with soccer. I contacted Manchester United twice, albeit no answer. Would there be a particular person that I should contact? Another idea pertains to the poultry industry yet I do not know where to start. Again I made contact but no answer. Where do I go from here?
– James

Your question actually raises an issue that is important for all entrepreneurs to consider. But before I get to that, let me address the first question as asked... Read More

Hello! I am about to venture into my own welding shop with a partner. What is the best way to get customers? Grab a business directory and just call? Email? Mail? Go in person? All of the above? Should I contact weekly daily, monthly, yearly?
– Ross

There is no single "best" way of generating business. Each market and, indeed, each business will find unique ways that work best. Having said that, here are some guidelines... Read More

Hello, I've got an idea for a product which would use the technology from another company. Their current product line is totally different from my idea but I feel their materials & manufacturing would lend itself to my product. I want to protect my idea but at the same time talk to the company about any possibilities. How can I do both (within reasonable costs), without the risk of them stealing it?
– Gary

It sounds like an interesting opportunity. Let me start with a general observation for people who hold their ideas close for fear of people stealing them. Now, as a former lawyer, I am certainly a fan of protecting your interests. You should speak to a lawyer about getting appropriate non disclosure agreements before engaging in detailed discussions with potential partners. Having said that, the paranoia that people with ideas have about someone stealing their ideas is generally unwarranted... Read More

What are typical profit-sharing rates in a very small company? Is a range possible? For example, this much if the company profit is between $50,000 and $100,000, this much if it is between $100,000 and $150,000?
– Josee

Thanks for your question. It's great you are thinking about rewarding your team. Let me offer you a different take on Profit sharing that may, in some arenas, be bit controversial... Read More

My business is niche, tiny, and I need it to grow to be able to support itself finally. I am subsidizing it also by contracting during the day. How do I grow it? How do people decide on "new lines of business" to take on and venture into, without diluting their focus?
– Sebastian

Your question actually raises a number of issues. First off, let me congratulate you for your instinct regarding focus. There are far too many entrepreneurs who suffer from what I call "ideatosis"; an affliction that has them jump from idea to idea without ever completing anything. They enjoy the delusion that they are making progress because there is a flurry of activity. What they don't realize is that they are confusing imagination with creativity... Read More

I have developed a new product. This product is a herbal dietary supplement. I cannot get into more details until I start the patent process. I would like to know if I can get any grants from the government to help with the business. I would also like to know how you would market this product (The target market is over 50 million people). I was thinking of selling via a website first, yet I am unsure of how to market the website.

Basically I am looking for your advice in how to market this product, how to get funding(grant/investors). Any advice would be great. – Mani

It sounds intriguing. I assume you have already spoken to a lawyer to ensure that the product can be made subject to patent protection. If not, make sure you get on that right away. Patenting is a rather costly process, so you will want to examine both your cash flows and the timing of the patent application. As for government grants, there are many out there. However, among entrepreneurs, there is often a mythology that there are pots of money just waiting to be handed out. Generally it doesn't work this way... Read More

My wife & I own & operate a retail store, which has a unique character in that we purchase most of our merchandise oursleves in Africa, from individual adult artisans, on a fair trade basis. We came to BC, Canada directly from S.Africa 15 years ago. Business is very good (& growing) and we are now faced with a 'tax problem'. Our business is a 'sole proprietorship' and based on our last taxable income, we are faced with a $12000.00 income tax bill from CRA! Our Accountant proposed to "Incorporate" the business in order to save on the tax bill. Should this incorporation be done on a Provincial or on a Federal basis and is this the best way to go for us? We love our jobs and found a defenite niche in the retail market, but we do not want to 'work for Revenue Canada' all our lives (ages 57 & 59 already!) Glad to provide more info, if needed and thanks for your time!

And congratulations on your success. I actually have a strong interest in businesses that have a socially responsible bent. Now, I am not an accountant and would not feel comfortable second guessing your CA. Tax rates for incorporated entities are, indeed, lower than those for individuals over a certain revenue figure... Read More

Hi, I am looking to start a small seasonal construction company for next year, and I'm doing a lot of research right now. We are just about to register and incorporate, but I'm unclear as to what would be the best way to setup the corporation. The company will be a 4 way even split amongst family members. Should all four be directors of the corporation? And will this affect everyones entitlement to Employment Insurance in the off season?

Thanks for the email and congratulations on taking the plunge. Your question actually has a couple of elements to it: the practical and the legal. Issues of directorship and EI are really better asked of a lawyer as that is the domain of the law. You should also ask the lawyer about whether incorporation is necessarily the best solution. I am not giving legal advice here, but there are a few practical distinctions among different structures... Read More

I have been running this show on my own. I have found someone who has great talent and don’t want to lose her. A friend suggested I give her shares, but I’m not sure if I’m comfortable with that. What do you think?

There are a lot of considerations to take into account before making such a leap. Whether it is shares or a partnership, when you run your own business, there can be large impacts from opening up ownership. The fact that someone has technical talent does not necessarily mean they have the skills necessary to own a business... Read More

I love my business, but I fear I might start burning out. I am busting my hump, which I really don’t mind, but I don’t seem to have much time for anything else in my life. I’m the chief, cook and bottle washer. I have ok employees, but they just don’t care the way I do, which means I have to stay up worrying about everything. Should I fire them, downsize, or see a shrink or all of the above?

Ok, first breathe. I don’t have enough info here to give you advice on firing or downsizing, but first try to identify the problem before pulling out all the big guns. As for a “shrink”, I am all in favour of people getting whatever help they need to succeed. Therapy can be extremely valuable in clearing away the underbrush and helping you deal with challenges in an emotionally healthy and balanced way... Read More

I’m really confused. My business has been growing. I am selling like crazy, but I keep facing a cash crunch and my banker is getting ticked off. What am I doing wrong?

First off, congrats on growing your business and succeeding in sales. That is a great foundation to build on. With respect to the cash, there are likely one or more of a few things going on. First, look at your margins. Selling a lot is great, but if it is priced in such a way that you are losing money, those sales aren’t actually serving you. Take a look at the Price Discount vs Price Increase sheet in the tools I have provided... Read More

I have in place a profit share program for my employees. I really thought this would help motivate them and make them feel appreciative of the place they work. I have been disappointed that performance has not really stepped up. In addition, when we had a drop in profits, they complained about their bonuses. Any thoughts?

There are a number of considerations potentially at play here. They can range from the way expectations are communicated, to recruitment practices, to management techniques. But restricting the discussion to the profit share, I will make the following observation. Profit sharing can be a very generous act. With a team that is highly motivated and that can see the direct connection between their actions and their bank accounts it can be very useful... Read More

You have a question for our expert Warren Coughlin? You too can ask a question!