Steps to start a Business in Canada
Describe about the Business Planning Expendation for Managing Development.
To start up a business in a new country, the business development manager has certain responsibilities to deal with. There are many emerging opportunities for entrepreneurs and business owners in the market to set up a distinct organization from those which already exist in the particular country. It is essential for the business manager to keep knowledge about certain things before starting up a business in a new country. Some countries usually confiscate business or property that are owned by foreigners, so it is advisable to make sure that we do not end up starting a business in a country having jurisdiction with maximum political risk. Another criterion for starting up a business is good economic situation of the country so that the population residing there has tendency to spend more resulting in greater profit.
It is necessary to enter into a business only when you are expert at it, one should have complete knowledge about it, and an incomplete knowledge about the business will lead to a major disaster. Partnering with a local, who is trustworthy and has knowledge and experience about such business can bring a lot of effectiveness in the project. Significant time shall be spent in determining the local habits of that country. It is feasible to set up trial run and to conduct survey before making huge amount of investment (Kaiser, D, 2016).
Berjaya Group is planning to expand its business in Canada, as according to the surveys and researches performed we have come up to the conclusion that Canada is the best country to expand our business because of its low cost of living and supply of high educated workforce. Canada is a great destination for a start-up as Canada’s inflation rate is flat; it provides venture capital and financing to small businesses (Knowles, R, Castillo, C, 2010). Canada helps in Business Development by providing rendering services, training services and loans (Gillett, R, 2014).
To start a business in Canada many formalities has to be fulfilled. Even if Canada is one of the best country to start up a business it is essential to follow certain guide and rules (Neelankavil, 2015).
First of all a good business idea is must to start up a business in Canada or anywhere else. Whatever the business idea may be it should be effective to bring success in the business plan. It should be innovative and according to the needs and wants of the population residing in that area.
While choosing a business name two things should be kept in mind, one is the marketing potential of the business name and second is its legal elements. The name of the business should not be similar to the name of any other existing business. It should have its own distinct identity.
To start a business in Canada it is essential to choose a business ownership that creates the legal structure of the business. Every form of business has some advantages and disadvantages, so while making this decision the project manager has to make a decision accordingly that will be able to make the business a great success.
It is compulsory to get the name of the business registered for almost all business in Canada. It is so to create a legal image of its own and can legally perform the business activities in and around the country. Through registration a company will receive the certificate of registration and can run its business activities with ease.
Some business can be easily financed by the owners itself but some business usually tends to face financing problem. They need funds from other sources to start up with the work. Canada provides subordinate financing to small businesses.
Licensing means lease of a legally protected entity such as name, logo, graphic design, signature, slogan, character, likeness, etc. It is the marketing and branding tool that is used by corporation of small business. It is not necessary for all organization to get license before operating within the municipalities as a legal one. Licensing depends upon the type of business we are starting with.
There are other rules to start up a business such as Registration for Goods and Services Tax and Harmonized Sales Tax depending upon the type of business (Ward, S, 2016).
PESTLE Analysis includes six external factors that affects the business.
To start up a new business in any country it is essential to analysis the variables related to global and local politics, which has potential to influence the business. Usually legal environment and law related factors are often grouped with political factors; therefore, it is essential to distinguish them as legal factors in PESTLE Analysis. The political system of the country , their international relationship and government subsidies and sanctions are regarded as the political factors that can influence the business.
The factors that are concerned with the economy, goods and services and money are termed as economic factors. Supply and demand of a product, tax rates, interest rates and inflation are the economic factors that affect business. Canada is one of the best country to start up a business as it ensures start-ups to maintain stability in the economy (Wesson, T, 2007).
SWOT Analysis of Canada
These factors are connected with the behaviour of the society and its culture. For example, the consumer lifestyle, family size, social classes etc are responsible to affect the social factors in starting up a new business.
The factors that are related to the existence and availability of new technology are known as technological factors. Due to the development of new technology it is essential to read these factors before setting up a new business. It is important to cope up with the dynamic environment of the business world.
Legal factors are also responsible in affecting the business. The factors related to law which has capacity to influence the operation and behaviour of the customer are termed as legal factors. An organization should study the consumer law of that country where it is planning to set up their business, know the legal procedure to start up and keep complete knowledge about the export and import laws to run smoothly by following all the legal compliances prescribed by the Government of that particular country.
The ecological factors related to the physical environment in which we live are known as environment factors. For example, climate change, pollution and animal extinction (Plewea, M, Whitney, J, 1997). To start with a new business make sure the climatic condition of that country is suitable for the products and services that we are intended to offer. All theses condition should be favourable to begin with a new business (Bush, T, 2016).
Canada is that type of country which is associated with culture and tradition. In SWOT Analysis the country’s position in the market, their export and the reason for sound economy will be discussed understanding about its Strengths, Weaknesses, Opportunities and Threats of the country (Pahl, N, Richter, A, 2009).
The Government of Canada supports entrepreneurship by providing many avenues such as tax reductions and breaks and due to this reason the other countries can confidently start up their business in Canada (Thompson, S, 2010).
The exports of Canada have been a success and this is the main reason behind increase in the profit of the country. The export of the country still continues to grow ensuring a greater profit growth rate.
Canada and United States are the neighbouring country, Canada has been able to gain the benefits of trade surplus substantially with America and this amounts for almost three-fourth of Canada’s merchandise exports during each year.
Dependency on the US
High dependency of Canada on US can sometimes be its weakness as well, as a very large proportion of Canada’s export (around 74%) goes to America. During the period of US recession, the exports of Canada faced a downfall because they very totally dependent on Canada. When the US market faces a loss or downfall in the market it will ultimately affect Canadian market too (Martin, J, Chaney, L, 2008).
The Canadian dollar keeps fluctuating up and down but it is mostly down, which may cause a rift in the country. It resulted as a period of unemployment because many left their jobs when the dollar value goes down.
Since Canada is a country having big exports, they have a competitive advantage over exports in the international market. As we can see that US is Canada’s biggest market relating to export, when there is an increase in demand from the Asian market Canada steps forward to fulfil it (Frue, K,2016).
Due to the downfall in the Canadian dollar the livelihood of many stores has been threatened and leading to its closure. This resulted in unemployment and even additional stores namely, Future Shop and Target has closed their operation in Canada due to its poor economic growth.
An integrated business plan is a process in which two or more function of a business are integrated and which can be termed as an enterprise holding high financial position. In this process the functional area of the business is defined such as it develops operational plan and sales plan, healthcare analytics and strategies that a corporate should follow to manage the corporate properly. It also involves planning of various plants engaged in the factory. The integrated business plan basically includes five major steps (Integrated Business Planning, 2016).
In this process we plan that what will be the demand in the local as well as the global market. We need to understand that how the plants and supply chain will respond to the demand of products and services. After the preparation of the demand plan it is essential to make sure that all the developmental level in an organization is working effectively to fulfil the demand. The demand planners also needs to forecast against the inventory and service levels so that this can be helpful in facing the decision challenges.
The second step is the shape process; in this process we build an optimized demand along with the supply plan at both local and national level. We need to identify the gaps and alternatives that are available to address the mismatch before they can affect the ultimate customers. A plan is developed to focus on the family and sub family line to facilitate long term goals and to complete the plan.
In this step we have to build a plan taking the local, regional and the national level into consideration and also the customers and suppliers. The demand plan and the supply plan should be collaborated actively with the stakeholders. The collaboration should include trading partners, the suppliers and the customers and the sales organization. Technology enables such collaboration by the use of social media. By this the organizational coordination will establish that will help in achieving the organizational goals.
In this step all the stakeholders and executives should be brought together for the approval of the plans related to demand, supply and finance. It should be assured that the functions of the business are being handled as per the plan; the integration plan should not be taken for granted. This plan can be done with the help of technology and maintenance of discipline. As a result of integration plan there will be only one integrated plan that will be an optimized one. This integrated plan helps a lot in making decision in the organization (Information Resources Management Association, International Conference, 2001).
After the completion of above steps, this plan should be published and should adapt the changes occurred in the business to bring some improvement. The building of plan is not enough it is also necessary to operate the integrated business plan in the desired way. When this step comes to an end it will ultimately result into an organization that will be working more efficiently and the employees will be able to cooperate and coordinate according to the plan.
Dr. Michael Porter, professor of Harvard Business School, school conducted many successful theories and one of them is termed as Porter’s Diamond and consists of various factors to achieve competitive advantage. Porter defined that there are basically four attributes that is required to gain competitive advantages.
The factors related to production like infrastructure, skilled labour and education that are necessary to compete in an industry are the factor conditions in this model (Basu, C, 2016).
A country that spends a large amount on education is Canada than other countries all around the world; this is the reason that Canada is referred as a country having highest educated population. Canada’s workforce level of skills is ranked as number one when compared to other various countries (IMD, World competitiveness Yearbook, 2009).
In case of doing business both in and outside the nation Canada stands at the second largest position and this has been possible due to good transportation having developed networks. Canada has no problem in transporting goods both in local as well as in the international market.
It describes the demand and its nature in the local market related to the goods and services in the industry itself. Due to the global recession, few countries have a stable and sound economy. The Economic Action Plan in Canada is trying to develop various tax reductions so as to create job opportunities and sustain them to stimulate the economy overall.
The industries related to multinational enterprises in Canada, is competitive and this is due to competition among various product portfolios. Acquisitions and mergers of large enterprises are mostly common in Canada. A new business can flourish when they get support from any local or a company that has already been established and doing well in the market.
It is essential to determine the establishment, management and organization of the company existing in the market as their rivals. When it come to local strategy and structure, Canada is very different from all other countries in the world because Canada deals with two different languages and two different cultures: French and English. So, while taking business decision it should keep in mind the cultural differences among the two cultures and languages (International business and Canada, Porter’s diamond of national advantage and Canada, 2016).
Political and Economic
Due to fall in the value of Canadian dollar many people left their jobs and it resulted in the creation of unemployment in the economy. The economic growth of the country declined due to the instability in the Canadian dollar. The Federation structure of Canada comprises of three levels of Government, responsible for handling the international affairs, banking, intellectual property, transportation, customs tariffs and many other aspects (Speziale, R, 2016). All these Councils handle different sector and it is important to comply with the requirements prescribed by theses councils in various areas (Duggan, T, 2016).
The Federal and the Provincial Government has an important role in the administration of labour laws of Canada. Among these two, Provincial Government is more important. The Canadian Employment law covers many area such as overtime pay, number of hours worked, public holidays, minimum wage etc. The minimum wage law varies in Canada and this is according to the territorial or provincial law. Most of the workers enjoy the right of annual leave days without any problem of being paid less. Therefore, it becomes very difficult to understand these laws and to compliances with them.
We all know that bribery is totally illegal. In case of companies which deal in bidding on contracts that are procured by federal government, many companies try to receive those contracts by provide bribe. Bribery and corruption can also influence a business in achieving its goal successfully (Ricks, D, 2009).
Other risk associated with new business in Canada are the risk of terrorism threat, protective security advice and intellectual property rights as the administration is done through the Intellectual Property Office of Canada. Canada is a country where it has a history of organised crime hence, business doing well can be a part of this crime (Department for International Trade, 2016).
Promoting a business is an ongoing activity and it is essential even after the business starts running. It involves word of mouth, trade shows and paid advertisement. Once the marketing plan is developed a suitable technique of promotion is adopted.
Marketing plan template is a road map that helps in finding customers and to keep the customers. It involves the understanding of ideal customer so that they can enjoy good buying experience. It is one time investment but it will help an organization in setting up long term goals (Vipond, M, 2011).
For the convenience of the customers websites are designed so that they can find about the business online. If a business does not have a website it is advisable to have one to gain competitive advantage over their rivals who already have one. It is not necessary that the products have to be sold online but creation of a website will help the customers to have an idea about the business.
We know that marketing is usually done online but print media still has some importance that can be effective in promoting a business. It is an effective one because it is tangible and when a trade show is organised customers will demand for a brochure. It acts as a reminder of the products that are dealt in a business (Government of Canada, 2016).
The most influential way to communicate with the customers is email marketing as it is less expensive and convenient. It helps in targeting the right customers by considering emails for marketing that gives respect to the Canadian law. In email marketing is it important to craft the right message so that when the readers open the mail they can directly know about the message. This can be done by creating a subject line that is meaningful. It can be made attractive by offering discounts or providing professional tips (Government of Canada, 2016).
Canada is a multicultural country; despite to its size and diversity we can say that business culture has some consistency in it. Canadians are polite people, they value their country with respect and they want peace with good government policies. It is advisable not to offend a person in business and to follow all the basic etiquettes to secure a deal (Bricker, D, Ibbitson, J. 2013).
Canadians are usually very punctual, and being late is termed as showing disrespect. Not only being late but arriving too early is also not appreciated as it will interrupt the schedule of others.
They follow the formal style and want the managers perform their tasks in team and not as aloof authority. Everybody should be allowed to give their opinions while making a business decision but the ultimate power of taking decision lies with the top authorities (Whittle, J, 1997).
Reserved and a perfect professional relationship is maintained in business. A meeting begins with a small talk and then the procedure of meeting is begun. While conducting a meeting it is to be ensured that politeness is followed. Business cards are exchanged so that it can be carried to the next meetings. In the meeting all the business facts, figures and documents are presented that are logical and accurate.
In Canada the small business does not have formal dress code but a suit and tie is must while attending a meeting. Formal titles are used while addressing the authorities. It is necessary to follow the business etiquettes in Canada to accomplish the goal of a business.
A direct communication system is preferred in Canada. Emotions have little value as they are reserved person and not open. One should not show aggression but has the right to speak what they feel like; they can put up their points and thoughts in a polite manner (Business in Canada, 2016).
International business involves those commercial activities that take place among two or more countries. Usually this type of business is a private one and main motive is to expand their business resulting in huge amount of profit. Berjaya Group is planning to start its business in Canada because it is among the top five countries suitable to start up a new business in the world. Canada is a place where small entrepreneurs are capable to start up an enterprise with minimum efforts as the Government has shown support in this regard. In Canada Government has introduced many tax reduction policies and rules which makes very easy for small enterprise and other business to make profit. Canadian Government is also supporting the enterprise by providing loans and funds. Canada is a country where employees are educated and qualified. They are properly trained and know the local working culture of the country.
To start up a new business in Canada Berjaya is planning to take help from a local person who has knowledge and experience in concerned business field so that he can guide and show the right path. We can even involve local partnership to make more profit and establish our business there. Canada is a best place to expand our business but there are certain risks involved such as language barrier and culture adaptation. To avoid such risk our managers have studied the local market and are ready to overcome such risks.
We look forward that Berjaya Group can successfully start a business in Canada and achieve its goal within a short period. It is expected from all the persons associated with the company to be supportive and enthusiastic to implement our plan so that we can perform outstandingly in the global market.
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