2011 The New School for Inspired Work 12 Steps to Business Start | 1

12 Steps to Business Start

Setting your fee structure 2
Business startup checklist
1. Create a business name 6
2. Register your business name 8
3. Apply for a HST/Business number 10
4. Establish your work space 12
5. Obtain a business licence from the city 16
6. Set up business banking 18
7. Obtain business insurance 20
8. Create an identity for your business 22
9. Develop your website/online presence 24
10. Create business records and accounting system 27
11. Report and pay income tax 28
12. Seek guidance 29
Resources 30
2 | 12 Steps to Business Start 2011 The New School for Inspired Work
Bringing awareness to your finances
The subject of money creates the opportunity to explore our belief systems about our own value
and the value of the services we provide.
What are some of your belief systems about money?
Paying yourself
It is extremely important to acknowledge your own value and one way to do so is to pay yourself.
Give yourself a monthly salary. On the first of each month, pay yourself.
Take care of yourself. Set up an automatic withdrawal from your account, even if its for a
small amount.
Include vacation pay. When you are self-employed, especially when you are working for an
hourly or structured rate, you will need to also set aside money for your vacation time.
Paying your own benefits. When you are self-employed, you are responsible for paying for
your own medical/dental benefits, and contributing to your own pension plan (you will be
required to pay into CPP, as well).
What is your monthly budget?
Do you know how much it costs for you to live each month? Living without awareness around this
issue keeps us in the dark and powerless. Conversely, with awareness and acknowledgement, we
empower ourselves to make changes when necessary.
Exercise: Complete the projected budget on the next page as your own example.
2011 The New School for Inspired Work 12 Steps to Business Start | 3
Estimating your minimum annual income
Monthly Budget (Business) Monthly Budget (Personal)
Rent/Lease Rent/Mortgage
Business Insurance House Insurance
Loan Payment(s) Loan Payment(s)
Telephone Telephone
Cell Phone Hydro
Hydro Water
Gas Gas
Internet Cable/Internet
Office Supplies Medical
Office Furniture Dental
Business Licence Health
Professional Fees (eg. Accountant) Exercise
Bank Service Charges Bank Service Charges
BUSINESS NET TOTAL Food
Clothing
GROSS (before tax) Entertainment
Transportation
BUSINESS GROSS ANNUAL (x12) Personal Items
Miscellaneous
RSP Contribution
Vacation Pay
Savings
PERSONAL NET TOTAL
GROSS (before tax)
PERSONAL GROSS ANNUAL (x12)
ESTIMATED MINIMUM ANNUAL INCOME (PERSONAL + BUSINESS)
4 | 12 Steps to Business Start 2011 The New School for Inspired Work
Determining your fee structure
Billable hours
In general, what is the maximum amount of billable hours in a 40-hour workweek?
What functions might you be performing with the non-billable hours?
Calculating your hourly rate
Exercise: Calculate base hourly rate based upon your estimated minimum annual income.
How much would you like to gross in the year:
How many days would you like to work in a year:
How many hours of your working day will be billable:
Billable working hours in the year (working days x billable hours/day):
Rate per hour (gross billable working hours):
Your fee structure
What types of sessions and/or services will you be offering? What would they include?
How much would each session be valued at (how much time and energy would be involved)?
Which services will you provide?
This exercise helps bring clarity to what it is exactly you want to do and how to communicate it to
potential clients.
Service(s) Time Time Fee
in session outside session
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Assess if your rates are equal to the value of the services you are providing
Would you feel the exchange is fair?
Ask others, what would they pay for your services? What would you pay?
What do others in the same field charge? Do they feel its enough, not enough?
Your fee will determine what type of clients you attract
What type would you like to attract?
Alternative Options for Payment
Prepaid Package Plans
Offering a set package of multiple sessions in advance.
Paying by Donation
Offering the possibility for the client to determine the rate.
Paying it Forward
Offering the opportunity for your clients to pay for future clients sessions.
Sliding Scale
Offering a discounted rate based on income level.
Donation of Time
To offset your fees, you could donate time, such as one session/week to your favourite organization.
6 | 12 Steps to Business Start 2011 The New School for Inspired Work
1. Creating a business name
Why create a business name?
By creating a business name, it is a proclamation and a commitment to yourself that you intend
to create a stream of income through this business entity.
The components of a business name
If you choose to create a business name, the name must have two components:
Distinctive element The first part of your name must start with a distinctive
non-descriptive word or phrase. (e.g. a geographical location,
your name, a made up word or phrase, or initials)
Descriptive element The second part of your name must describe what type of
business you are in. (e.g. shoe store, investments, doggy wash)
Sole proprietor, partnership or corporation
From a legal point of view, there are three common types of businesses: sole proprietorship,
partnership or corporation. Each has different and important implications for liability and taxation.
Sole proprietor As a sole proprietor you would be fully responsible for all debts and
obligations related to your business. A creditor with a claim against a
sole proprietor would normally have a right against the sole proprietors
assets, whether business or personal. This is known as unlimited liability.
Corporation When a company is incorporated, it acquires all of the powers of an
individual, an independent existence separate and distinct from its
shareholders, and an unlimited life expectancy. In other words, the act
of incorporation gives life to a legal entity known as the corporation,
commonly referred to as a company. A company can acquire assets,
go into debt, enter into contracts, sue or be sued.
To determine which type of business will meet your needs, contact your lawyer or accountant.
For more information on the different types of businesses, visit Small Business BC at:
[Link]/starting-a-business/legal-requirements.
The legal designation
If incorporating a company, you must add a third component to the business name called the
corporate designation: e.g. Limited, Ltd., Corporation, Corp., Incorporated, Inc.
When registering a sole proprietorship or partnership, a corporate designation is not used.
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What does your business name represent?
In two to three words, your business name needs to:
Convey the essence of your business;
Encompass your businesss vision and mission;
Be easy to pronounce and understand; and
Coordinate with an available website domain name.
Important: When choosing a business name, you want to ensure that an appropriate
website domain name is available before you apply for the business name. See section 9
for more information on where to research domain names.
What makes a good business name?
What is your philosophy (your basic beliefs) about your field of work?
What is your vision for your business?
What is your mission for your business?
Brainstorm ideas for your business name
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2. Registering your business name
Are you required to register a business name?
If you plan to operate a self-employed, non-incorporated business under your own name, without
adding anything to your name (e.g. John Smith), then there is no need to register the business
with the BC Corporate Registry.
However, if you decide to add something to your name (e.g. John Smith Services), then you would
need to register it.
Small Business BC [Link]
Step 1: Have your business name approved
Name Approval Form
Download the Name Approval Form from [Link]/[Link], or
pickup in-person at Small Business BC, or fill out online application at BC Registry Services.
Business Name Search
Prior to submitting your name approval form, search that the name you have chosen is available
and not being used by another BC Incorporated company. Incorporated companies have protected
names, while proprietorships and partnerships do not.
Small Business BC has microfiche machines that you can access in-person, or you can search
online at [Link]
Complete Name Approval Form
Its best to fill out all three name choices to increase chances for approval of a desired name. The
Corporate Registry will only examine the request until a name is approved if your first choice is
approved they do not search the remaining two.
Submit Your Name Approval Request Form
Online [Link]
Fee: $30 (includes tax)
In-person Small Business BC
82- 601 West Cordova Street
Vancouver, BC V6B 1G1
Fee: $50 + HST
By mail BC Corporate Registry
PO Box 9431, Stn Prov Govt
Victoria, BC V8W9V3
Fee: $30 (includes tax) payable to Minister of Finance
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Step 2: Register your business
Once you have been notified that your business name has been approved, you have 56 calendar
days to register your business name or complete your incorporation process.
If you choose to register as a sole proprietorship or partnership, there are three options:
Online [Link]
Fee: $40 (includes tax)
In-person Small Business BC
82- 601 West Cordova Street
Vancouver, BC V6B 1G1
Fee: $99 + HST
By mail BC Corporate Registry
PO Box 9431, Stn Prov Govt
Victoria, BC V8W9V3
Fee: $40 (includes tax)
To register as a corporation:
Self-incorporation online [Link]
By lawyer You may wish to contact the Lawyer Referral Service at the
Canadian Bar Association BC Branch.
[Link]/bc/Public_Media/main/lawyer_referral.aspx
10 | 12 Steps to Business Start 2011 The New School for Inspired Work
3. Applying for a HST/Business Number
It is always advisable to consult with an accountant prior to making any decisions regarding tax issues.
There are advantages and disadvantages to be known, which are unique to each individuals situation.
HST Information
Canada Revenue Agency
[Link]
BC Government
[Link]
What is a Business Number?
The Business Number (BN) is a numbering system created by the federal government to track
business dealings. It is based on the idea of one business, one number.
What is a HST number?
Your Harmonized Sales Tax (HST) number is an account attached to your business number. The
HST number consists of two parts: the business number and the account identifier.
Business Number 123456789
HST Account 123456789 RT 0001
There are other types of accounts such as payroll accounts.
Why have a HST number?
On earnings over $30,000/year it is mandatory to collect and remit HST to the federal government.
Having a HST number is optional if your annual business revenue is not expected to exceed
$30,000. However, there are reasons why you still may want to do so:
Setting the intention that your income will exceed $30,000.
You are able to reclaim a portion of the HST paid out on business expenses.
Professional image.
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How to obtain a HST number
There are several ways to obtain your HST/BN:
In-person Canada Revenue Agency Canada Revenue Agency
1166 West Pender St 9755 King George Hwy
Vancouver, BC Surrey, BC
Phone Canada Revenue Agency Business Enquiries line toll free at 1-800-959-5525
Online [Link]/tx/bsnss/tpcs/bn-ne/bro-ide/[Link]
The HST Rate
The current HST rate in BC is 12%.
Using the HST number
Your HST number must be included on all receipts, invoices, contracts, or other business papers
used when taxable goods or services of $30 or more are supplied.
Remitting HST
After your first year in business, the government will determine if you need to file quarterly. They
will send you HST installment remittance forms. Installments owing are calculated is based on tax
paid the previous year. Generally, the quarterly payment due dates are: April 30, July 31, October
31 and January 31.
12 | 12 Steps to Business Start 2011 The New School for Inspired Work
4. Establishing your work space
Communication lines phone and e-mail
You likely already have phone lines and e-mail accounts, but you may want to consider setting up
accounts specifically for your business purposes.
Having clear boundaries around your work and personal life.
Allows you to set guidelines around when you are available to clients.
Creates a professional presence.
Work space options
Home-based business
Rent space within another business
Commercial lease
Considerations
What will your working schedule look like?
What are you willing to do in terms of commute? What form of transportation is important to you?
What form of transportation is important to your clients? Will your clients need parking?
Where would you like to work? What type of environment? What part of the city?
What are your your needs?
What are your clients needs?
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Working from a home office
Advantages Disadvantages
Minimal startup costs Easily distracted
No commute Cannot receive clients in your home
Flexible working schedule Less professional image
What do I need to consider before planning a home-based business?
Depending on what city you live in, when operating a home-based business, you are not legally
allowed to receive clients in your own home. The only activities allowed at your home are your
administrative tasks. To visit with clients, you are expected either to go to their homes, or to meet
in another space such as a coffee shop, meeting room, etc.
Its advisable to research the regulations for the area where you live before you set up your
business. Some types of home businesses may not be allowed in your area of the city. For more
information, see section 5.
Setting up your home office
Create a welcoming work environment. Surround yourself with things you love. Create an
inspiration board. Have live plants to exchange energy.
Having boundaries
Eliminates difficulty in switching between personal and work mode. You can set office
hours or not, depending on how you want to work, but it may be challenging to relax if you
always feel on.
Create a separate room or space. If you plan to do significant amounts of work at home, you
need a space that you can go to that is your office, where you can make a shift into work
mode, have some isolation, close doors (so phone calls are quiet and you can work without
distraction). Then when you are not working, you will be able to feel at home and relax.
Get up, and take a shower, get dressed as though you are going to work. This helps set the
intention for the next portion of the day.
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Renting a space within another business
Advantages Disadvantages
Lower startup costs Confusing messaging, marketing, branding
Professional image Conflicting visions, potentially
Potential access to a client base
Transfer of knowledge from colleagues
Less responsibility in running of business
What do I need to consider before working within another business?
What is their business philosophy and does it align with yours?
Will I be a private practice or part of a group practice?
What type of clients do they primarily work with and do I want to work with the same type of
clients?
What are their expectations around your working schedule?
What are the room rental rates?
Is there reception available?
What is the expectation around referrals?
Are you required to sign a contract?
What kind of insurance are you required to carry?
Rental rates and percentages
Contract basis: $45 - $85/day
1 day/week (e.g. every Monday)
3 days/week is common
contract usually required, minimum 3 to 6 months
Casual basis: $15 - $25/hour (difficult to find, but possible)
Indefinite: pay a percentage of income (ranges between 25 to 60%
depending on services provided)
pay a flat fee rate (can start at ~ $400/month and increase)
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Leasing a commercial space
Advantages Disadvantages
Professional image Higher startup and operating costs
Easier access for customers
More amenities
What do I need to consider when looking for a commercial space?
Does the space meet the citys licencing and zoning requirements? ALWAYS OBTAIN A
LICENCE BEFORE YOU AGREE TO ANY LEASE.
You will likely need to sign a lease agreement for a minimum period of time, usually one year.
You are committed to this operating cost for the entire lease period.
Where to find commercial space
Online CLS Link [Link]
Loopnet [Link]
In-person Visit the area you are interested in and watch for For Lease signs.
Write down the information and call the realtor.
Calculating the monthly cost of a commercial lease
An example of a typical listing
Regent Medical Building 2184 West Broadway, Vancouver, BC
Taxes and Operating: $15.53 [Link]./annum
Net Rent: $20.00 [Link]./annum
Suite Area Description
337 402 [Link]. Very efficiently designed medical offices, in excellent condition.
Includes two exam rooms, waiting/reception area, file storage.
Based on the listing above, a sample calculation would be:
402 [Link]. x $35.53 (15.53 + 20)/[Link]./annum = $14,283/annum 12 months = $1,190/month
Different types of leases
Seek professional advice before agreeing to any lease.
Net The tenant pays a base rental amount plus some of the expenses.
Net-Net The tenant pays the base rental amount, real estate taxes, and
insurance premiums.
Net-Net-Net The tenant pays the base rental amount plus the landlords
operating costs: included in this amount are real estate taxes,
insurance, maintenance, and repairs.
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5. Obtaining a business licence and permit
All businesses require a business licence from the city in which they are operating. The city
issues licences to ensure the safety of the general public. It is how they monitor that building
codes and safety regulations are being met.
City of Vancouver Business Licences and Inspections
[Link]
Where to go
Business licence applications are made in person with proper picture identification of business
owners at the licence office.
Register in-person City of Vancouver Licence Office
Second Floor, East Wing, City Hall
453 West 12th Avenue
Between 8:30 a.m. and 4:30 p.m., Monday to Friday
Applicants are required to describe the business, give the property address of the proposed
business and pay the appropriate fees. ALWAYS OBTAIN A LICENCE BEFORE YOU AGREE TO
ANY LEASE.
The cost of a licence
The costs of a licence varies depending on the nature of the business and the business location.
If you operate without a licence you:
Cannot claim your business income or expenses on your taxes.
Could be fined by the city.
Could be liable for public safety with regards to your business.
Permits
You may be required to obtain a permit for various activities.
Owners / Lessees Undertaking (tenant improvements)
Sign Permit (for external signage)
Zoning
Zoning ordinances are sections in which various activities and businesses are allowed or prohibited
by a city. The major types of zoning are: residential, commercial, industrial and agricultural.
ENSURE YOUR SPACE IS PROPERLY ZONED BEFORE YOU AGREE TO ANY LEASE.
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Home-based business limitations
A business licence may be issued using your residence as your business address, providing:
Only one resident is engaged in the business.
No signs are displayed on the residence.
No products or materials are sold from the residence.
No products or materials are stored outside of the residence.
The residence is used only as a mailing address, a place to retain business records, and or
receiving and placing business telephone calls.
Seeing customers
In the City of Vancouver, when operating a home-based business, you are not legally allowed to
see clients in your own home. It is understood that if you are operating a home-based business,
the only activities occurring at your home are your administrative tasks. To visit with clients, you
are expected either to go to their homes, or to meet in another licenced space such as a coffee
shop, meeting room, etc.
6. Setting up business banking
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Establishing a relationship with a bank and a business banking professional is beneficial. As your
business grows, it is helpful to work with someone understands you, your business and your
banking history.
Why have a business bank account?
If you have registered a business name, to receive payment in the name of your business, you are
required to open a business account. A business bank account is creating a channel to receive a
stream of income.
It is especially important to have a business bank account for ease of tracking your business
expenses. It will make your life much simpler to keep your personal and business finances
separate, especially at tax time. For more information on keeping business records, see section 10.
There are additional fees associated with business bank accounts, but the time and energy saved
at year end offsets any potential costs.
To create an account
Make an appointment with your bank to open a business account.
Two pieces of identification with current address.
Supply your bank with your approved Registered Business papers.
Options to consider
Your banking professional will guide you as to which services are available and in your best interest.
Setup online business banking.
Having cheques printed to use to pay for your business expenses.
Having a debit card linked to your business chequing account.
Applying for a business credit card for your business expenses.
Options for receiving payments from customers.
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Set up payment options for customers
There are several options to collect payment. Some are more convenient than others for you or
for your customers:
Cash (pay a percentage ~1% to bank for deposit on business account)
Cheque (deposit fee ~0.20)
Credit card (~3% processing fee + min monthly user fee ~$25, requires a merchant number)
Paypal (2.9% + 0.30 per transaction)
e-Transfer (transaction fees for user depending on financial institution)
Which form(s) of payment will you accept?
When will payment be required?
What format will your receipts be?
Paper E-mailed Handwritten
Refund, no-show or cancellation policies
What actions might you take to prevent no-shows or cancellations?
What will your refund policy be if a client decides to cancel their appointment or are a no-show?
How will you advise your clients of your policy?
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7. Obtaining business insurance
Commercial insurance is available from a commercial insurance vendor.
Is it mandatory to operating your business?
Your situation will determine whether or not insurance for your business is mandatory. Generally,
you will need insurance for:
acquiring a lease
renting a space (if not already in place)
financing your business
Why would you want insurance?
Insurance options
Home-based business insurance
If you plan to operate your business from a home office, a home-based business policy can offer
protection against loss of your business equipment, reference materials and files. This type of
policy does NOT offer liability coverage to receive customers in your home or malpractice liability.
Commercial insurance
If you plan to receive customers in your home, you will be required to carry a commercial insurance
policy. Be sure to offer your insurance agent full disclosure about your business activities.
Commercial liability Commercial liability pays losses arising from bodily injury or
property damage/loss. This includes bodily injury claims on your
premises or arising from your operations. Property damage
and loss includes your business-use office materials such as a
computer, furniture, fax, etc. This policy does not include errors
and omissions claims (see below).
Professional errors and Professional errors and omissions liability protects you from
omissions liability (PE&O) claims if your client holds you responsible for errors, or the failure
of your work to perform as promised in your contract. This
coverage includes legal defense costs no matter how baseless
the allegations. PE&O liability will pay for any resulting judgments
against you, including court costs, up to the coverage limits on
your policy.
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Disability insurance
Disability insurance pays an insured person an income when that person is unable to work due to
accident or illness. To qualify for disability insurance, you would need to provide: your educational
background, two years of financial statements to verify your income and also pass a medical
exam. Disability policies are usually supplied by agents who deal with life insurance.
Self-employment employment insurance
[Link]
Beginning in January 2011, self-employed Canadians will be able to access Employment
Insurance (EI) special benefits. There are four types of EI special benefits:
maternity benefits;
parental benefits;
sickness benefits; and
compassionate care benefits.
You may be eligible to access EI special benefits beginning in January 2011 if you:
are a self-employed person; and
are a Canadian citizen or a permanent resident of Canada; and
have entered into an agreement with the Canada Employment Insurance Commission
through Service Canada.
To enter into an agreement with the Commission, you will have to register online using My
Service Canada Account anywhere you can access the Internet, including at a Service Canada
Centre near you. You will have to wait 12 months before you will be able to make a claim for EI
special benefits.
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8. Create an identity for your business
What is an identity?
Your identity is the public representation of your business. It is important to distinguish between
brand identity and visual identity.
Brand identity is the promise that your business makes to the public the
underlying values of your business.
Visual identity is concerned with the visual aspects of your business presence.
These include your logo, overall design, and collateral materials.
When creating your visual identity, it is important to know the brand identity you wish to
communicate. You will need to create your visual identity, your look, before you can create your
marketing materials.
Why build an identity?
So that your customers and potential customers can easily identify who you are, recognize your
company, and understand your vision.
It is most important to be yourself!
One of the mistakes startup businesses make is trying to be what other people want them to be.
By being yourself, you will attract those customers who resonate with your message. Successful
businesses know who they are and match their own values with the values of their customers.
Building your brand identity
Exercise: What are your core values?
What is your field of business?
What special qualities do you bring to your field of business?
What is the underlying message you want to convey and to whom?
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Building your visual identity
For a professional look hire a graphic designer
Generally, there are two types of designers print or web. Usually designers will work with one
medium or the other, however, there are some who work in both.
Your role in the creative process
A designer will have you fill out a creative brief. Answering questions about your goals, intended
audience, and your message will help them create your identity. To assist in the creative process,
provide examples of what you like. You can pick up samples: clippings from magazines or books,
favourite websites, etc. This will help a designer understand your personal style.
Find a designer
To find a designer, word of mouth is the best method. Ask others who they use, and if they are
happy with their service.
Rates
Rates vary greatly, and can be anywhere between $25/hour and $150/hour. Always obtain a
quote before starting any project.
Startup collateral
Once youve developed your visual identity, your look, you can then proceed with creating your
marketing materials.
Business card. This is the most important and easiest tool for marketing your services. It lets
people know what you offer and how to find you.
Letterhead. For professional communication.
Invoices. Remember your HST number must be included on all receipts, invoices, contracts,
or other business papers used when taxable goods or services of $30 or more are supplied.
Promotional brochure. Think about how and where you are going to distribute them, what is
your message.
Intake forms. Create based on how you want to work with clients.
Educational materials. Your information handouts for clients.
Signage. If you are leasing a commercial space, you may need to create location signage.
Website. Your website is your online business card and brochure.
9. Develop your website
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Building your website can help you clarify what you are about and what you offer.
Why have a website?
Gives your business perceived credibility.
Provides your first impression.
Accessible marketing always available free to public.
Provides information which helps potential clients choose your service.
Connection tool stay connected with your customers.
Maintaining your business online scheduling, community forum.
Choosing a domain name
For simplicity for your customer, choose a domain name as similar as possible to your business
name. Visit a domain registration company to search if your desired domain name is available.
Registering domain names
Cost can be anywhere from FREE to $100.00/year depending on:
which registrar/webhosting company you use;
which extension you use (e.g. .com or .ca);
if you purchase a webhosting package; and
for what period of time the name is registered.
Some local domain registration service providers are:
Webnames [Link]
Webserve [Link]
Go Daddy [Link]
Domain People [Link]
Something to consider when choosing a provider is their reputation. You want to work with a
company that will provide longevity, customer support and reliable service (guarantees of 99.9%
uptime).
What is webhosting?
A webhosting package will offer you a certain amount of storage online for your website plus
website functionality features.
It also provides dedicated e-mail addresses to your domain name and the ability of doing business
transactions online (e-commerce).
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What does webhosting cost?
The cost of webhosting packages ranges widely depending on the services required. If you purchase
a webhosting package, the domain name registration will likely be included in the price.
Minimal package for small business: ~ $6.00/month
Comprehensive package for large business: ~ $150.00/month
Where can you purchase webhosting?
Your local domain registration service providers likely offer webhosting services as well.
By googling webhosting, you will find listings for dozens of companies.
What makes a well designed site?
Review some websites to discuss.
Clear who the business is and what it does.
Clear message about specialty/targeted community.
States benefits to customers first.
Avoids clichs.
Simple colour palette.
Easy to navigate.
Eye-catching images with selective use (think less is more).
Appropriate use of medium judicious use of copy, strong graphics.
Current links to blog with recent activity, modern design.
Important to have a consistent look and feel with other marketing materials.
Do-it-yourself design
There are now many easy-to-use, do-it-yourself tools to building your own simple website. Check
your webhosting provider for templates.
Buy web building templates. Webhosting company/other online services
Free online website templates. [Link], [Link]
Exchange services. You could exchange your services for web design.
According to a Stanford University study, the overwhelming factor for web users determining
the credibility of a company by their website is the professionalism of its design.
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Hiring a professional
If hiring a web designer, the cost for building a basic 5-page site starts at $1,000, if your visual
identity is already developed. Rates vary greatly always obtain a quote before starting.
For a professional look hire a web designer
Ask others who they use, and if they are happy with their service.
Review sites you enjoy and link through to designers portfolios.
Your role in building your site
Assist in the creative process
Answer the previous questions about the brand identity of your practice.
Provide examples of what you like. From magazines or newspapers, other websites, etc.
This will help a designer understand your style.
Creating content
It is important element to have content with substance. A typical startup site could include:
Home briefly outlines the benefits to your services
About biography of you and your company, including your values and philosophy
Services lists your services and/or products
Value-added special extras for your clients
Contact how to reach you, your location
Question: Will you list your fees on your website? Why or why not?
Social Media
Facebook
Create a facebook page to connect with customers and promote events.
Blogging an alternative to a website (or in addition to)
A blog can be used to keep your clients interested and updated. It can also be a powerful form of
self-expression and a way to keep yourself inspired and connected with the wider world.
Many blog sites are FREE:
Blogger (by Google) [Link]
Wordpress (by Automattic) [Link]
What other social media would serve to connect your business with your clients?
2011 The New School for Inspired Work 12 Steps to Business Start | 27
10. Keep business records
Whether operating a business or have self-employment income, you are legally required to set up
an orderly record and accounting system. It will require some effort at your business startup, but
will save time and energy later, when it is easy to maintain.
Keeping Records (CRA Pub no.RC4409) [Link]/E/pub/tg/rc4409
Keep yourself organized
Keep business finances separate from personal. This is to save your own time and money at
year end. As well, if you were subjected to an audit, you would have to account for each and
every transaction to the government. Having to sort through hundreds or thousands of
transactions could be overwhelming.
Set up a docket system for tracking your client visits. Record visit dates, noted symptoms,
follow-up details, next appointments, etc. Store intake forms, food diaries, copies of lab
results, etc.
Set up a physical filing systemfor your financial statements, receipts, bills, client dockets,
etc. You are legally required to keep any business documents six years from the end of the
last tax year to which they relate.
Use accounting software such as Quickbooks or Simply Accounting to track your income
and expenses. If necessary, a bookkeeper could be hired to set up your system of accounts.
Alternatively, you could set up a simple record of income and expenses in a spreadsheet
software such as Microsoft Excel.
Sample Income Spreadsheet
Invoice Date Client Description Subtotal HST Total Payment Received
101 1/23/10 Client A Initial Consultation $90.00 $10.80 $100.80 Chq 147 1/23/10
102 2/5/10 Client B Consultation $75.00 $9.00 $84.00 Cash 2/5/10
103 2/6/10 Client A Consultation $75.00 $9.00 $84.00 Chq 151 2/6/10
TOTALS $240.00 $18.80 $258.80
Sample Expense Spreadsheet
Date Vendor Description Account Subtotal HST Total Payment
1/5/10 City of Vancouver Business Licence Fees, licences, dues $150.00 $18.00 $168.00 Chq 224
1/15/10 Printing Vendor Business Cards Marketing $200.00 $24.00 $224.00 Chq 225
2/4/10 TELUS January Phone Telephone $50.00 $6.00 $56.00 ATM
TOTALS $400.00 $48.00 $448.00
28 | 12 Steps to Business Start 2011 The New School for Inspired Work
11. Report and pay income tax
It is always advisable to consult with an accountant prior to making any decisions regarding tax issues.
There are advantages and pitfalls to be known, which are unique to each individuals situation.
How do you report your self-employment income?
If you conduct business as a proprietorship, you would report your income (or losses) for your
business fiscal period on your individual tax return.
For an incorporated company, you would file a corporation tax return within six months of the end
of the corporations fiscal period.
Business and Professional Income (CRA publication number: T4002)
[Link]/E/pub/tg/t4002
This guide explains the most common tax situations for the self-employed individual, detailing
which items are tax deductible for your business. It includes the forms to report your statement
of business activities as well as how to report your business use-of-home expenses.
Some common items which are tax deductible for self-employed persons
Rent and utilities including internet (commercial space and/or home-based business)
Marketing materials and advertising
Insurance
Business licence and other membership fees
Office supplies
Professional fees (accountant or lawyer)
Motor vehicle expenses
Paying your income taxes from self-employment income
When you have self-employment income, you have to remit periodic income tax payments (if
your net tax owing is more than $3,000.00) to the CRA to cover tax that you would otherwise
have to pay on April 30 of the following year. Installments are not paid in advance; they are paid
throughout the calendar year in which you are earning the taxable income.
When are your payments due?
The federal government will send you installment remittance forms. If forms are needed call the
CRA at 1-800-959-5525 (business related) or 1-800-959-8281 (individual income tax). Generally,
the due dates are March 15, June 15, September 15, and December 15.
For more information about businesses or professional activities, visit the Canada Revenue
Agency website at [Link] or call the Business Enquiries line at 1-800-959-5525.
2011 The New School for Inspired Work 12 Steps to Business Start | 29
12. Seek personal and professional support
Your business is an extension of your personal development. It is beneficial to keep building your
self as well as your professional knowledge and community. We derive fulfillment from being with
and sharing with others. You dont have to go it alone.
Accountant
When operating a business, having an accountant is helpful, if not essential, for advising on tax
issues. Find an accountant who specializes in working with small businesses. Large accounting
firms may not be able to accommodate someone with a small business.
A reference from someone you know and trust is the best resource for finding an accountant. You
would then meet to determine if your needs are a match with their expertise. As always, the rates
vary, but a small firm or independent accountant may charge from $85 to $150/hour and up.
Lawyer
A lawyer would be your best ally when determining what type of business you are going to
establish a proprietorship, partnership or corporation. It is essential to retain a lawyer for the
process of incorporating your company. As well, they are helpful for advising on legal liability issues.
Peers
Keep in touch with your peers, it can be isolated working for yourself. New ideas and energy
come from exchanging with others.
Find practitioners in other fields for referrals when needed, and vice versa.
Join a community of like-minded people:
Mentors
Find a business mentor, someone within your industry or elsewhere, someone you resonate
with and respect, and trade services for their insights and knowledge.
Find business support groups:
Ladies who Launch [Link]
Womens Enterprise Centre [Link]
The Connected Woman [Link]
30 | 12 Steps to Business Start 2011 The New School for Inspired Work
Resources
Online
BC Registry Services [Link]
Canada Business [Link]
Canada Revenue Agency [Link]
City of Vancouver [Link]
Ministry of Finance [Link]/sbr/[Link]
One Stop Business Registry [Link]
Small Business BC [Link]
Books
Business Mastery: A Guide for Creating a Fulfilling, Thriving Business Cheri Sohnen-Moe
Getting Started in Consulting Alan Weiss
Start and run a profitable consulting business: A step-by-step business plan Douglas A Gray