Moving to a foreign country and braving the challenges of starting something new are both separately daunting tasks. But putting the two together can make it seem even more insurmountable. Especially when you consider the very telling statistics from the Business Development Bank of Canada (BDC), the fact that a third of all new businesses in Canada crash face-first doesn’t make matters better.
However, starting afresh with a brand new business venture in Canada is actually quite not as big of a risk as it seems. After all, small businesses make up 98% of the total number of employer businesses in Canada. Here’s everything you need to minimize the risks when you move to Canada to get started with your brand-new startup.
Is starting a business in Canada a good idea?
Even though moving to Canada and starting a business from scratch can seem intimidating, it is not! Canada offers a life-sized market for a variety of goods and services. As an immigrant, you will have two options to select from in terms of your business model.
You can either start your own business. In doing so, however, there is a lot of work that goes into it. Starting from understanding the market for the goods and services that you are trying to sell in the country to implement a sustainable business strategy, you got to do everything from the scratch. On top of that, connecting with relevant resources both material and personnel can make the whole plan a bit riskier than you would like it to be.
A less risky and more profitable business model would be to buy a franchise to build your business in Canada.
How to start your business with low risk?
Before buying a franchise to build your own business as an immigrant in Canada, the most crucial part is the selection procedure. Selecting the business for minimum risk would require you to consider both the history of profitability of the franchise and your status as an immigrant.
The profit-oriented market research will include certain factors of the franchise:
- Location of the franchise. In this case, looking for a new place with good reports of profits works best.
- Research the failure rate of the franchise you are thinking of buying from. Go to the experienced people who can provide you with transparent reports. You don’t want to board a sinking ship.
As a foreigner in Canada, you should also keep in mind that you opt for a franchise that sells to immigrant business people. Along with this, you must present relevant industry and managerial experience. Moreover, in Canada, to become a permanent resident as a business owner, you must have an executive role in your business. So make sure, the franchise you invest in is capable of providing you with an executive role.
Setting up a Franchise Business in Canada
Now that you have selected your franchise, go through the FDD documents thoroughly.
Carefully read through the revenue analysis to get a clear idea about the profitability of the business. For this, you must take a look at the T2 Corporate Tax returns, Schedule 100 and Schedule 125 for the past few years.
Based on your selection of a franchise for setting up your entrepreneurship, you will have to file immigration documents, which will include:
- Proof of relevant business experience
- Purchase agreement and proof of payment
- Availability of funds to take over the business
- A comprehensive and profitable business plan
Finally, the franchisor would require you to opt for a training session for the functioning of the business. After the completion of these initial duties, you can have the business run.
Franchises are currently a successful business inlet in Canada, raking up to $100 billion for the Canadian economy. 1300 identifiable franchise firms throughout Canada, in fact, rake up more than $1 billion a year! Plus, with Canada’s stout banking system and relatively simple legal procedures, starting up a business in Canada is a wonderful way to kickstart your business career.