Starting an Online Business in Canada
Starting an online business in Canada is no different than starting a small business anywhere in the world.
In Canada, as a small business you will save on some of your biggest business costs. This is money that you can use to further invest into your business innovation and growth.
The Government of Canada has many funding programs that also help individuals starting a business in Canada, whether it is an online business, a brick and mortar business, or both.
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If you have decided on Canada as your business location, starting an online business is fairly simple.
There are many helpful resources that will take you through the registration process, and that is typically the first step when starting your small business, registering it.
Steps to Starting an Online Business in Canada
Other than registering your small business to be able to start an online business in Canada, below are a few steps to take to help ensure your success.
Step 1: Determine the type of online business you want to do
When starting an online business in Canada, you need to know what kind of online business you want to have. Will this business be strictly online, or a mix of offline and online? Are you planning on selling a product or a service? Are you shipping a product? What is it that you want to do?
These are important questions, as they will determine the kind of online business structure you need to set up. There are many different types of online business structures you can choose from.
- eCommerce (if you are selling products online)
- Blog (if you are sharing content to build a brand)
- Business Website (if you are selling a service or a mix of products)
- Combo Business (a combination of the above)
- Third Party Business (if you are a reseller, affiliate, or social media promoter)
The structure really depends on your idea and what you want to do.
Step 2: Develop a business plan for your online business
Developing a business plan for your online business in Canada is the next step once you have figured out what you want to do. By creating a business plan, you will be able to make it work on paper, which is very important to ensure that your plan is viable.
Other than creating a website, building an online presence, and getting visitors, you need to make sure all aspects of the business are covered and that you know what to expect.
While it is not much different than running a brick and mortar business, online businesses have many factors that can determine success.
Visitors do not simply walk by your online store. Competition on the web is enormous, so having a solid business plan that sets you apart is essential.
Step 3: Register a domain name and create a logo
Once you have created your business plan, you should know the next steps needed to get your online business going.
The next step is to register a domain name so that you can secure your business name on the web.
Many business owners choose a domain name that matches their registered business name, but this is not always the best option.
When starting an online business, people need to remember your domain name and understand what you do simply by seeing it.
For example, if you are selling pet supplies and your company is registered as John Doe, a domain like JohnDoe.com may not be ideal. A name such as JohnsPetSupplies.com would better describe your business.
Many domain names are already taken, so you may need to get creative or very specific.
GoDaddy.ca is a popular and trusted option for registering domain names.
Once your domain is secured, the next step is creating a logo. Keep it simple, clean, and memorable.
Step 4: Develop your website and get hosting
The next step is developing your website and preparing it for visitors in Canada or around the world.
Website development can be expensive, so having a website plan before you start is highly recommended, especially if you plan on hiring professionals.
Websites can cost anywhere from $2,500 to $15,000 or more. Knowing exactly what you want early helps keep costs down until your business model is proven.
There are many free or low-cost website platforms available, such as WordPress, Wix, GoDaddy Website Builder, and Shopify.
Once your website is ready and your domain is connected, you will need hosting. A provider like GoDaddy is suitable for starting out, though you may want to upgrade as your traffic grows.
It may sound complicated, but it is manageable, and help is available if needed.
Step 5: Build an online presence through social media
One of the most enjoyable parts of starting an online business is building an online presence. Social media is often the simplest and most effective way to do this.
Think about where your audience spends time. Whether it is Twitter, Facebook, YouTube, LinkedIn, or another platform, start there by creating a profile and promoting your business.
Avoid over promoting. Keep your content natural so people are drawn to you rather than feeling pressured.
Step 6: Start promoting your online business
Once your website is live, there are many ways to promote your online business effectively, including:
- Social media marketing
- Search engine optimization
- Email marketing
- Paid search marketing
- And more
Take your time and grow your business steadily. External factors can influence how quickly you gain attention online, so having a clear plan and following it is important.
There are many online marketing and startup resources available. Take the time to learn, research, and educate yourself.
Finally, there are many funding programs available through the Canadian government that can help online small businesses. These include grants, loans, and tax breaks to help you get started, build your website, promote your products or services, and hire staff. Learn more about available support through Canada Startups.