In early 2005, Canada was recognized by the World Bank the second richest country in the world. According to the World Bank's ten richest countries in the world are located in the following order:
·Australia
·Canada
·Luxembourg
·Switzerland
· Japan
·Sweden
·Iceland
·Qatar
·United Arab Emirates
·Denmark
The United States recognized the twelfth country in the list, and the United Kingdom (England) takes the twenty second place.
In the last quarterly report of the Royal Bank of Canada (Royal Bank of Canada), the above magazine Maclean's, argues that "today's record low bank interest rates, stable low inflation and a significant improvement in government finances before the opening of the Canadian economy the best opportunities for development since the end of World War II."
Today, in Canada, the world's lowest corporate income tax and the highest rate of job creation.
According to Garth Turner ( Garth Turner), a financial analyst and commentator on Canadian BBC, the Canadian economy is growing at an impressive pace, creating more jobs, but without any significant inflation.
Contrary to popular belief, do business in Canada is cheaper and easier than in the United States. A study conducted by KPMG found that operating costs (operating costs) of any Canadian business on average 6.7% lower than the cost of similar businesses located under comparable conditions just south - in the United States.
There are many favorable factors differentiating set of conditions for doing business in Canada, among them:
Lower land prices;
Lower the cost of all construction work;
The cost of electricity in Canada today is the lowest in the world;
The most favorable conditions for investment;
The availability of risk capital (venture capital) - today it is in Canada more than 2 times more per capital than
The United States;
A large number of different government - federal and provincial programs - support and development of
Entrepreneurship, small and medium-sized businesses.
If you are a businessman, you have the ability to organize their work in Canada - to start from scratch or develop an existing business. For many years, entrepreneurs transform ideas into products and services. On the one hand they meet the needs of customers for their products and services, on the other hand are building their own careers. Official Canadian authorities are ready to assist entrepreneurs by offering them assess their business potential by answering the questions the so-called national tests for Entrepreneurs (National Entrepreneurship Test). This test is available on the Internet. According to the results of the test, you can get a number of recommendations and overall assessment of your business potential in Canada.
Local features
Canada consists of the provinces and territories. Provinces are in turn divided into districts and counties. In order to familiarize yourself with the rules of business registration and licensing rules for the implementation of an activity, with tax rates in each case, you must determine what part of Canada will build your business. General information, legal aspects, organization of office, buying an existing business, and other aspects may vary considerably depending on the area that you choose to deploy entrepreneurial activity.
Legal aspects of the creation of business
No matter what province or territory you have chosen, there are some general guidelines that you can stick to successfully start and grow your business. Whatever sphere of production of goods or services you are not, it is likely there are already professionals who can give you advice on the proper organization of the case. Specialists, which is necessary to address first of all - those who can provide you with legal support in your endeavors in place in some provinces or territories. Legal aid will not be superfluous in that case, if you live in one province or territory, and realize the case to another. Looking for the required specialist you can apply to your business associates, friends who had in the past with business law firms. Remember that a lawyer may be your main source of advice in financial matters. Assistance may be needed in the following questions: what structure best suits your business needs; any rental options exist in this area and which ones are most likely suit you; on what grounds you can buy an existing business;what kind of contracts can conclude, and what security measures must be taken to protect their business and their finances.
Buying a franchise or starting a new business
Franchising - a very common type of business in North America. What are the main differences from the usual franchising business?
When you open regular business entrepreneur will have to decide on their own set of questions:
What will the business?
How profitable and promising business planned?
What size should this business?
What staff need to hire and for what purpose?
Which advertisement required, where and how often to give her what tools will be required and who will deal with?
Where and what to buy equipment and what it will cost?
Development of marketing strategy business?
In what area to open a business?
What tools will have to invest in the business at the opening; which means we must keep in reserve for its development?
Where can I borrow money for business development?
Clear answers to these questions are important to the success of any business. In North America, without competent, professional business solutions they simply cannot survive - so strong competition.
Now imagine that someone has already completely passed this way - founded the firm and decided all questions, in many cases with the assistance of professional marketers, financiers and other business consultants. Not only agreed but also proved in practice the right technology long-term success of business. The owner of this business offers to help any entrepreneur in the opening exactly the same business, one might even say, the branch.
The new business will operate on exactly the same technology as that of the selling company, and provide the same services or to produce exactly the same product. Sold by the buyer will teach all the details of doing this business. He will receive advice on the scope of business in the selected region, assistance in selecting the location, take away premises, staff recruitment, purchasing equipment. He will know the level of expected profits and investments at different stages. Entrepreneur to provide a detailed plan developed and proven organization and business. Business, open to such a scheme, called franchising.
The owner of franchising also gets the right to name the firm name of the firm-seller. Name recognition is of paramount importance for the success of business in North America. 99.9% of buyers will go to franchising "McDonalds", just because everyone knows the name, rather than in the wonderful, but unknown to the snack bar or restaurant. At the same time, each franchising, although bears the name of the company, the seller, works independently and is solely responsible for its financial activities.
By buying franchising buyer usually pays from its funds part of its total value (from 30% to 70%).The remaining payment of the amount available in the debt (funded) by the bank itself or selling the franchising company. This amount will be refunded the buyer financed with interest certain parts within the stipulated in the agreement on the financing period.
If the firm-seller itself does not provide funding, it usually sends the buyer to cooperate with it in the bank, which makes it easier to obtain financing.
Sold by the buyer provides franchising typically 10, 15 or 20 years. At the same time, the terms of the contract allows the owner to sell it frrenchayzinga at any convenient time. Accordingly, it is possible to buy an already active franchising, which may give certain advantages compared with the formation of a new business. The cost of franchising can range from $ 10,000 to $ 1,000,000 and above.
It is clear that, in contrast to a fully-fledged business where the entrepreneur is left to himself, the owner of franchising has strong support in the face of firm-seller. In many cases, the firm has extensive experience in this business, has a special staff for maintenance and consulting owners franchising, franchising holds interests in national advertising campaigns, research and development in order to maintain their competitiveness.
According to the US Department of Commerce number of franchising, ceases there is less than 5% annually. At the same time, the number of independent businesses, disappearing from the market during the first three - four years after their appearance, is about 75%.
Of course, for these benefits have to pay. The owner of franchising makes monthly payments to the company, the seller (the so-called Royalties), which can range from 2% to 10% of total sales or profit. He agrees to comply with technologies available to buy raw materials only from certain suppliers and comply with other conditions stipulated in the contract for the provision of franchising.
Does this mean that the owner of franchising is 100% immune from failure? The answer is: absolutely not. Franchising - it is a business and like any business, it retains a certain amount of risk.
Many Canadian firms selling business franchising system. In the Canadian market as there are numerous franchising American firms. Those American companies, franchising are not yet operating in Canada, as a rule, will be happy to start with your help, its presence in the Canadian market. When deciding on the purchase of franchising, be careful and follow the rules of buying business.
Partners Global Citizens Inc can provide services for establishing business contacts in Canada.
Recommendations for buying a business
Buying franchising - a serious step. The future owner will have to invest heavily in the business, to devote a long period of his life, to pay the company-seller of the money earned. The buyer bear the primary responsibility for the decision and the right choice. All this dictates the need for reasonable care.
One of the main challenges of the future owner - the right choice Seller franchising. In the case of an unfortunate choice of his partner can be a firm that seeks at all costs to sell franchising and giving publicity, which does not reflect the true state of things in this business. Such firms do not provide sufficient support to owners of franchising.
With skillful searching for his partner can be firm with an established reputation for clear rules of business and selection of candidates for franchising, providing complete and accurate information about their business, all of which will ensure the success and open a business confidence and satisfaction of its owner.
Some rules are recommended to follow when considering the purchase of franchising:
o It is necessary to know the conditions of the market, which will act franchising. Even if the firm-seller has a good reputation as a whole, local market conditions may not fully reflect the concept proposed to her business.
o You need to know their future competitors. The number of firms in the industry in the area where you want to open the franchising may be a factor decisive success or failure of the business.
o It is necessary to know the possibilities of business financing. On the ability to obtain financing may depend on the existence of the business. Owner franchising to be for many years to return to borrow and in his best interest to know who - the bank or firm-seller - gives the best financing terms.
o You need to know the specific area where this will act franchising. Closing or opening of transport corridor, construction of houses or businesses, income or social portrait of the population of the region are also factors that determine the fate of the business.
o It is necessary to find out - whether justified asking price franchising. To do this, the entrepreneur must know the size of the expected profit; any rights, privileges and territory he gets when buying franchising; how stable position of the company, the seller, which should support the franchising throughout the entire period of its existence.
Bidders are encouraged to get as much information about the company, the seller:
o whether it is a member of the US or Canadian Association frenchayzerov;
o it selects buyers franchising;
o how to respond to its support and training of owners of existing franchising;
o as it responds to complaints from owners of franchising;
o Does it an advertising campaign for the benefit of its franchising sold;
o Does it research and development to maintain the competitiveness of franchising and finally - that is the main point of reference in the policy of the company: the development of their own business or develop a network of franchising.
These recommendations focus on a small part of the issues that will determine the success or failure of the business. Nevertheless it, we hope that the information presented, which is based on the principles of fair franchising (Fair Franchising Standards), developed by the American Association of Owners and franchising Frenchayzerov (American Association of Franchisees & Dealers), will help you in making the right decision when buying a business.
Partners Global Citizens Inc can provide services for establishing business contacts in Canada.
