Small business question

[xxclaro]

Looking for some advice on if and when starting a small business is a good idea. Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at if you ramped it up a bit, but would need to put some money into equipment and supplies.

For example I like to raise some chickens and other birds, and there is a pretty good market for the right types, as well as little urban coops and such. If I want to sell more though I need to fix up some of my buildings and maybe construct some more, as well as getting some more equipment. It wouldn't take much, a few thousand maybe, and profits wouldn't be that high either but I thought it might be helpful to register a business so that you can at least save a little bit on taxes. I don't know enough about it to know if it's worthwhile, and not sure who I would talk to. Any advice on this?

[R3illy]

if your only making a few thousand its not worth it to incorporate. The tax benefit would be minimal at that point.

[Ken07AOVette]

Talk to your Accountant. I mean one in an office with accreditation not cousin Jenny who 'does the books'. If you are making it a business and charging customers the last I heard was you do not have to charge GST until you do $30,00 in revenue, BUT if you are doing this for profit keep track of all expenses that have anything to do with the work. It is 100% of the time better to do it right and legal than get caught and beg forgiveness afterwards, CRA has zero sense of humor.

[Dewey Cox]

Deal in cash

[KegRiver]

I set out to start my own business a few years ago. I'm still not there in the traditional sense.

Like ken says, you don't have to deal with GST until your income reaches $30,000 per year. I''m a long ways from that.

I have a business name but not a business license. I'm home based so my county says I don't need a business license for what I do.

What you do need is a business plan.

How are you going to market your product, who will you be marketing to, how will you promote your business, do you need your premises or your product inspected if you are selling to the public, where will you source supplies, how will you minimize costs, how will you support yourself and your family if you have one, while you get your business up and producing profit, how will you finance your business during and after startup, how will you deal with customer complaints? Who will you be competing with and how will you counter that competition?
How will you meet demand if demand exceeds you production. What will you do if you wind up with a surplus of product?

You need names, you need prices, you need volumes produced and volumes required, both for your product and your supplies.

You need to answer all these questions and more as best as you can before you invest time and money into you venture.
The answers are for you, so you will be prepared for all aspects of running a business before you get in too deep and find you weren't prepared.

The better prepaired you are the better your chances. Some businesses can be started with no plan and no preperation. But most have a far better chance if a good business plan is set up before one doller is invested.

If you need to ask for loans they will want to see your business plan which is basically the answers you came up with for all aspects of starting and running your business.

I can't advise you on the specifics of you chosen business venture. It is not the type of business I am in.

I can tell you it is not uncommon for a new business to cost more then it earns for the first few years.
I can tell you that dealing with customers can be the best experience you will ever have one minute and the worst the next minute.
Most people are honest, reasonable and interesting, a few are royal PITA.

It is not good to react to the negative customers negatively.

Customer relations make and can break any business. Know who butters your bread and respect them for doing so.

Always always always pay your bills. Bad credit will sink your plan faster then anything else.

And remember, everyone has a bad day, but you can't afford to let your customer see you having a bad day, hold it till you close for the day.

[Twisted Canuck]

There is so much truth in this article, it is beyond depressing...

https://business.financialpost.com/o...sh-your-spirit

[Xbolt7mm]

Originally Posted by xxclaro

Looking for some advice on if and when starting a small business is a good idea. Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at if you ramped it up a bit, but would need to put some money into equipment and supplies.

For example I like to raise some chickens and other birds, and there is a pretty good market for the right types, as well as little urban coops and such. If I want to sell more though I need to fix up some of my buildings and maybe construct some more, as well as getting some more equipment. It wouldn't take much, a few thousand maybe, and profits wouldn't be that high either but I thought it might be helpful to register a business so that you can at least save a little bit on taxes. I don't know enough about it to know if it's worthwhile, and not sure who I would talk to. Any advice on this?

No advise here, just good wishes hopping your ideas come through

[KegRiver]

I hope we aren't discouraging you.

Being an independent business owner can be very rewarding in many ways.

With some business it is possible to do it with minimal startup cost and effort. Kinda work into it in a sense. The example you give is one where this can be done.

You may not need an extensive business plan or advice from lawyers and accountants. Depending on the business type and how much you want to produce and sell.

But the more you know, the better prepared you are, the better your chances.

Learning as you go can work, especially with farm type business. People have started with very little input and even less information. And succeeded.
It took most of them a lot of years to make a decent income but they did eventually get there.
In the mean time they put in astronomical amounts of time and effort for little to no pay.

But they answered to no one. They made their own decisions and the reaped all of the rewards.

Today, many of them have time to spare, money to spend and a good future ahead.

It's not for everyone. One has to be willing to take the bad with the good but for those willing to put in the time and effort it can be the best thing you will ever choose.

[MyAlberta]

Originally Posted by xxclaro

Looking for some advice on if and when starting a small business is a good idea. Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at if you ramped it up a bit, but would need to put some money into equipment and supplies.

For example I like to raise some chickens and other birds, and there is a pretty good market for the right types, as well as little urban coops and such. If I want to sell more though I need to fix up some of my buildings and maybe construct some more, as well as getting some more equipment. It wouldn't take much, a few thousand maybe, and profits wouldn't be that high either but I thought it might be helpful to register a business so that you can at least save a little bit on taxes. I don't know enough about it to know if it's worthwhile, and not sure who I would talk to. Any advice on this?

'if and when' My only thought on this is when you have identified a need, and can fulfill that need at your required rate of return, is when a business is viable. Ramping up production isn't always the best approach. Brokering other producers products might be easier on the pocketbook.

[ssyd]

The amount of business regulation you face will be entirely unknown. It is up to you to discover what regulation applies to you as there is no central source for this crucial information.

This is the truth. Even as an owner/operator I learned this. Everybody will have an opinion based on what they heard from a guy one time but without scrolling through the actual laws as they're written or hiring a lawyer, you'll never know for sure.

[2 Tollers]

xxclaro -- the only other item I would add for you to think on is related to your comment "Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at ".

If you have a hobby that you enjoy and find it relaxing do you want this to become a business where you are essentially tied to it having to make it successful vs a hobby you enjoy. Some people can do this others find that once a hobby becomes a job it is no longer enjoyable.

All the best on your decision and if you chose to go to a small business I wish you success.

[warriorboy10]

The changes the feds (CRA) have introduced has decimated many small businesses. These days in many cases having a small business just isn’t worth it. And as far as “Oh I can write everything off” hearing many comments of this nature their are few that really understand what that statement or should I say practice really means!!

[Chixfishing]

Originally Posted by xxclaro

Looking for some advice on if and when starting a small business is a good idea. Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at if you ramped it up a bit, but would need to put some money into equipment and supplies.

For example I like to raise some chickens and other birds, and there is a pretty good market for the right types, as well as little urban coops and such. If I want to sell more though I need to fix up some of my buildings and maybe construct some more, as well as getting some more equipment. It wouldn't take much, a few thousand maybe, and profits wouldn't be that high either but I thought it might be helpful to register a business so that you can at least save a little bit on taxes. I don't know enough about it to know if it's worthwhile, and not sure who I would talk to. Any advice on this?

I have no idea on this but am just wishing you a good luck.

[Reeves1]

Originally Posted by xxclaro

Looking for some advice on if and when starting a small business is a good idea. Basically what I'm thinking about is something you do as a hobby that you could probably make a little money at if you ramped it up a bit, but would need to put some money into equipment and supplies.

For example I like to raise some chickens and other birds, and there is a pretty good market for the right types, as well as little urban coops and such. If I want to sell more though I need to fix up some of my buildings and maybe construct some more, as well as getting some more equipment. It wouldn't take much, a few thousand maybe, and profits wouldn't be that high either but I thought it might be helpful to register a business so that you can at least save a little bit on taxes. I don't know enough about it to know if it's worthwhile, and not sure who I would talk to. Any advice on this?

Didn't read all the replies...

I've raised lots of bird species / breeds.
Hobby farm.
I have never made a nickle.
Lots of write offs.
Good accountant.

[Big Grey Wolf]

Most small business go through the 5 year life cycle before they die. Some good advice hear, marketing your product and receivables very important.