The Independent Life

CONSIDERING THE INDEPENDENT LIFE

Thinking of becoming an independent practitioner?

You’re in an ever-growing circle. According to Statistics Canada, sixteen
percent of Canada’s workforce is self-employed and eighty percent of
those who transitioned to self-employment did so voluntarily.

What makes independent life attractive to so many? For the vast majority
of PIC members, the answer to that question is simple: it all comes down
to wanting to achieve a more rewarding work/life balance.

Among the many benefits of independent practice is scheduling your work
time around important events in your life, whether that be chaperoning a
son or daughter’s field trip, making time for that special interest class or
professional development opportunity, or taking an extra long weekend.
For some, the transition to independent practice is a way to take a career
in a whole new direction – to challenge skills and expertise in new and
innovative ways or to pursue the field you’re most passionate about.

Whatever your reasons for considering independent practice, do your
research before you leap. Is the independent life for you? AIP has
compiled the following resources to help you better understand what it
means to work independently, and to help guide you through the steps for
starting your own business.

GETTING STARTED
So, you’ve weighed the pros and the cons and realized that working on your own is right for you. Now what? Here are some important things to help you get started before you secure that first client.

  • Define your niche. How will you differentiate yourself in the marketplace from others who provide similar services? What distinct skillset or expertise do you bring to the table? What solution do you offer prospective clients?
  • Identify your target client audience. What sector(s) do you want to support? What is it that you can offer that will address their needs? What do you know about your prospective clients?
  • Define your business type. Is your business going to be a sole proprietorship, general partnership or a corporation?
  • Decide on the name of your business. Does the name of your business tell people what you do? Does it have a distinct name that people will remember?
  • Develop your business plan. What are your goals and objectives for your business? What are your projected revenues?
  • Register your business. You will receive a Business Identification Number (BIN) when you register your business name. Before registering the name, conduct a name search to ensure there are no other businesses registered with the same name.
  • Register for your Goods and Services Tax Number (GST).

WHICH BUSINESS TYPE IS RIGHT FOR ME?

Before you register your business, you need to decide which type of business you wish to be. There are pros and cons to each one, so take the time to review information on each option. If in doubt, and you are planning to work as an independent (i.e. not in partnership with another person), you can start off registering your business as a sole proprietorship, and as you gain a better understanding of what your annual revenues will be, you can give consideration to incorporation which offers some distinct tax advantages if your revenues are at a certain level.

  • Sole Proprietorship: refers to a business with one owner, and that owner must be an individual. If the name of your business is under your legal name (i.e. Joe Brown) you don’t have to formally register your business. If however, the name of your business is an extension of your legal name or a different name altogether (i.e. Joe Brown Communications, In Writing Only), you must register your business name by filing a Registration Form 1 under the Business Names Act.
  • General Partnership: refers to a business with two or more owners. Unlike a sole proprietorship, a general partnership can consist of individuals, corporations or other unincorporated businesses. You must register your business name by filing a Registration Form 1 under the Business Names Act.
  • Corporation: an incorporated entity with its own rights and responsibilities as a distinct person under the law. The owners of a corporation are not personally responsible for its debts. The Canada-Ontario Service Business Centre at http://www.cbsc.org provides a great description of each of these types of businesses together with a list of the advantages and disadvantages of each.

WHAT NAME WILL I GIVE MY BUSINESS?

The name you choose for your business could have a significant impact on its success, so shouldn’t be taken lightly. Make sure your company name is meaningful to your clients (i.e. does it give them some idea as to the services you offer?) and that it is distinct.

Keep in mind that if you are registering your business as a sole proprietorship, you cannot use words in your business name that suggest more than one individual is part of the company (i.e. partners, associates, group).

  • Ontario Business Name Search: To find out whether or not anyone else is already using the name you have selected for your practice, you can conduct an Ontario Business Name Search through the Ministry of Consumer and Commercial Relations. Their database will search exact name matches against existing businesses in Ontario. What it won’t reveal is whether another company has a similar name. You can conduct the Ontario Business Name Search at a small business centre (see these listed under the section ‘where can I register my business?’)
  • Web Resources:

HOW DO I GO ABOUT PREPARING A BUSINESS PLAN?

Your business plan is the roadmap for your business. It outlines a description of your business, your goals and objectives, your understanding of the marketplace you are planning to address and your competition, and your financial plan. A business plan is particularly important if you are planning to approach banks or other funding sources to cover business start-up costs.

  • Web Resources:
    • Government of Canada – CanadaBusiness – Online Small Business Workshop. Includes a sample business plan. Also offers an online Interactive Business Planner (IBP), software that assists entrepreneurs in developing a three-year business plan.
    • The Entrepreneurship Centre (Ottawa). Features a user-friendly business plan workbook that you can print and complete to help you pull all the information together that you will need for your business plan.
    • Canadian Bankers Association. Offers clear, concise steps to developing a business plan. You can also order a free copy of its publication, ‘Your Roadmap: The Business Plan’.
    • Bank of Montreal. Offers pdf of brochure in their Business Coach Series – ‘Developing Your Business Plan’.
    • Canadian Imperial Bank of Commerce. In its ‘Start-up Businesses’ section it includes an online business planning guide and financial planner.
    • Scotiabank.  In its ‘Small Business’ section, it offers sample business plans and a business planning guide.
    • TD Canada Trust.  You can download a copy of the bank’s ‘Business Planner’ from the ‘Small Business’ section of the website.

WHERE CAN I REGISTER MY BUSINESS?

  • Ontario Business Connects.  You can register your business online.
  • Small Business Enterprise Centres. These offer tremendous resources for the first-time business start-up including onsite computers for registering your business, resource libraries, pamphlets and guides for start-ups, workshops and seminars and consultation services. Services vary between centres. It’s best to check a centre’s website to see what’s offered, or better yet, to visit the centre. There is a fee for registering your business or conducting a name search on your proposed business name. Remember - a business registration must be renewed again after five years. The Companies and Personal Property Security Branch, Ontario Ministry of Consumer and Business Services (MCBS) does not send reminder notices. The following is a list of small business enterprise centres in the Greater Toronto Area:
    • Halton Region Business Development Centre, 1151 Bronte Road, Oakville, ON L6M 3L1. Tel: 905-825-6000. Toll-Free: 1-866-442-5866, E-Mail: busdev@halton.ca. Website: http://www.halton.ca   The Halton Region Business Development Centre offers a Business Basic Seminar Series in partnership with the Burlington Public Library for a nominal fee. Session topics include ‘Starting a Small Business’, ‘Web Resources for Small Business’, ‘Putting Your Business Plan to Work’, ‘Tax Essentials for Small Business’. You can also subscribe to their newsletter, Business Briefs –Startup Edition, which is produced six times a year. Business consultants are available to meet with new entrepreneurs to discuss business start-up, business planning, marketing and financial planning. There is no charge for consultations. The website features a ‘Guide to Starting A Business’, census data, and a cash flow template. Computers are available onsite to register your business and do a name search to see if the name you have in mind is already registered.
    • Mississauga Business Enterprise Centre, Central Library, 4th Floor, 301 Burnhamthorpe Road West, Mississauga, ON L5B 3Y3. Tel: 905-615-4460. E-Mail: mbec@mississauga.ca. Website: http://www.city.mississauga.on.ca   Offers online resources on starting a business including information about business types, registering your business, funding resources, business taxes and workshops/seminars on starting a business. The centre also offers free one-hour business plan consultations by appointment, and legal and accounting consultations for a nominal fee by appointment. To register your business online through an Ontario Business Connects computer station, you can make an appointment at the Employer Health Tax Office, 77 City Centre Drive, Main Floor by calling 905-273-9490.
    • Business Advisory Centre Durham, 50 Richmond Street East, Suite 109, Durham Region, Oshawa, ON L1G 7C7. Tel: 905-438-4008 or 1-800-632-5151. E-Mail: cawalker@bacd.ca. Website: http://www.bacd.ca   Offers an online entrepreneurial self-assessment tool, and a two-day workshop on starting a business. Includes a list of helpful links related to business plan development, business start-up assistance, financing, government websites, market research, marketing & advertising.
    • Enterprise Toronto – Etobicoke, Etobicoke Civic Centre, 399 The West Mall, Main Floor, North Block, Etobicoke, ON M9C 2Y2. Tel: 416-394-8949. E-Mail: glok@toronto.ca. Enterprise Toronto – North York, North York Civic Centre, Main Floor, 5100 Yonge Street, North York, ON M2N 5V7. Tel: 416-395-7434. E-Mail: gwheeler@toronto.ca. Enterprise Toronto – Scarborough, 150 Borough Drive, 1st Floor, Scarborough, ON M1P 4N7. Tel: 416-396-7169. E-Mail: ypetropo@toronto.ca Enterprise Toronto – Downtown, City Hall, Main Floor East, Toronto, ON M5H 2N2. Tel: 416-396-5243. E-Mail: jdavid@toronto.ca. Website: http://www.enterprisetoronto.com   You can register your business at any Enterprise Toronto location and do a name search to find out if the business name you have in mind is already registered. The Enterprise Toronto websites include a listing of upcoming seminars and events. Each location offers a resource library of business information and directories. The website also offers an online library catalogue of what resources are available. Free one-on-consultation is available but you must have a business plan to access this service.
    • Vaughan Business Enterprise Centre, Beaverbrook House, 9995 Keele Street, Vaughan, ON L6A 1R6. Tel: 905-417-0412. E-Mail: teresa@centrebusiness.com. Website: http://www.centrebusiness.com   Offers business registration services onsite. An appointment is preferred. Provides free one-on-one consultation, take-home information on starting a business, free use of onsite business library, group business seminars with expert presenters.
    • Ontario Ministry of Government Services, 375 University Avenue, 2nd Floor, Toronto, ON. Tel: 416-314-8880. The Ministry of Government Services offers business registration services for sole proprietorships and general partnerships.
    • Ontario Ministry of Finance, Retail Sales Tax Office, 5 Parkhome Avenue, Suite 200 (at Yonge and Sheppard), Toronto, ON. Tel: 416-222-3226. The Ministry of Finance has a computer terminal available for the registration of sole proprietorships and general partnerships. You need to make an appointment to register.

HOW DO I OBTAIN MY GST NUMBER?

Most businesses are required to collect the Goods and Services Tax (GST). If you are registered as a sole proprietor or general partnership, you can obtain a GST number by calling or visiting a Revenue Canada Office (www.cra-arc.gc.ca). A list of offices within the GTA and hours of operation are listed on the website. The website provides a comprehensive checklist outlining the information you will need to register your GST account. It also allows you to register online through the Business Registration On-line (BRO). When you register for your GST you will be assigned a Business Number (BN), not to be mistaken with the Business Identification Number (BIN) you will receive when you register your business.

  • Web Resources:
    • The Canada-Ontario Business Centre. Offers a comprehensive guide called “Starting a Home-Based Business: A Manual for Success” on its website. The 141-page guide is packed with useful information on everything from measuring your entrepreneurial spirit to preparing an income statement. It also includes a guide on ‘How to Start A Consulting Business in Ontario’ with information on basics to getting started, industry overview, financing, and managing your operation. This site also offers a list of online resources available to help women start their own business, including links to various women’s organizations.
    • HSBC Bank Canada. In its ‘Small Business’ section, HSBC offers a self-assessment tool to help you identify whether being your own boss is right for you.
    • Ministry of Small Business and Entrepreneurship. Includes a comprehensive resource called ‘Your Guide to Small Business’ with chapters on sole proprietorship, partnership and incorporation, choosing your business name, and a business planning guide.
    • Service Canada. In the ‘Training & Careers’ section of the website, you will find a section on self-employment that includes a self-employment quiz, a self-assessment questionnaire, pros and cons of working for yourself, and myths and realities about running your own business.
    • OCRI – The Entrepreneurship Centre (Ottawa). Features a variety of resources for starting your own business.
    • The Business Development Bank of Canada. Features a business plan template, an online entrepreneurial self-assessment tool, and a step-by-step guide to starting your own business.
    • Business Start-Up Assistant. This site provides reliable information on market research, business name and structure, preparing a business plan, and financing.
    • CanadaOne. Features 900+ small business how-to articles plus several business tools including a strategic marketing plan builder, a search engine submission tool, and several business guides including a small business money guide, starting a business guide, marketing guide, and a step-by-step guide to registering and setting up a domain name.
    • SmallbizXpress – Toronto Public Library. Your guide to small business information on the internet for Ontario – everything you need for starting, running, and expanding your business.
    • The Entrepreneur’s Help Page. Contains multiple resources for entrepreneurs including articles on business start-ups, business plans, marketing, office planning, technology needs of a start-up, etc.

Special thanks to PIC members Sue Horner, Barb Sawyers, Susanna
Smith, Lee Weisser and Lynn Woods who researched and contributed
material to this guide.    2006/2007

The link for part two — Setting Up Your Office — can be found at the top of this page.