Your Guide to Small Business is designed to give entrepreneurs the tools they need to succeed. It’s not a “how to” book; it’s an information resource that will help identify the things one needs to do before, during and after launching a business. This publication is also available for download as a PDF file on our Publications page.

 

Part 3 - Starting Your Business

Topics Covered:

• Financing
• Expert help
• Incorporating your business
• Government programs
• Registering your business name
• Taxes
• Business records
• Licenses
• Zoning
• Insurance
• Renting or buying premises
• Business communications
• Hiring employees
• Marketing your business
• Business start-up checklist

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"Don't try to be everything to everyone. You have to maintain your focus, while not being so rigid you miss out on opportunities. It's a fine line. Keep in mind who your customers are and why they buy from you."

Leila Kuokkanen
SISU Scandinavian Home Accents
London

Now that your business plan is complete, you're ready for start-up. The first item on your agenda: putting together your financing.

Financing

There are a number of options when it comes to financing. The likelihood is that you'll need a combination of some of the following:

• Personal assets
  Chances are, you'll need to use some of your own money for start-up, either from your savings or from personal property you can sell. You can also access start-up money from your credit cards or your RRSP. But you may pay a high rate of interest on credit card money—unless you've got or can get a low-interest card—and if you take money out of an RRSP you'll have to add the amount to your income and likely end up paying tax on it, so you should investigate carefully before going either of those two routes.
• Love money
  While borrowing from family and friends is an option—and lots of entrepreneurs have done it, including Microsoft's Bill Gates—it's one you need to think carefully about. Money changes relationships and it may not be worth it to involve family and friends in your business venture, particularly if they're not entrepreneurs themselves.
  
  If you do borrow from family or friends, make sure you formalize any loans by way of a promissory note that sets out the amount of the loan; whether interest is payable and, if so, at what rate; how and when the loan is to be repaid; and what security, if any, you're offering for the loan. A promissory note clarifies the agreement for both parties.
• Financial institutions
  Aside from your own personal resources, financial institutions—banks, trust companies and credit unions—are the most common source of financing for small businesses. They can provide a number of options, including personal lines of credit, short-term loans, long-term mortgage loans and, in some cases, loans against inventory or accounts receivable. The Canadian Bankers Association (CBA) has links to all its member charter banks.
• The Business Development Bank of Canada (BDC) is another possible source of financing. BDC bills itself as a leader in delivering financial and consulting services to small business. Depending on your situation, BDC may be able to loan up to $150,000 in financing.
• Angel investors
  Angels are wealthy individuals or groups who invest their own money in promising new businesses, usually ones in the same field they come from. Typically, angels provide money—usually between $10,000 and $2,000,000—in the early stages of the business in return for a share in it. Angels target businesses with high profit and growth potential. Angels generally take an interest in the operation of the business, and their input can be very helpful. Your lawyer or accountant may be able to help you find an angel, or you can ask around in your local business community. You can also try the National Angel Organization.
• Venture capitalists Like angel investors, venture capitalists look for businesses with high growth and profit potential. They offer money, management expertise and connections for a share in the business. As a rule, venture capital companies won't look at an opportunity that requires less than $500,000, and most prefer a deal size of at least $3 million. You can get a list of venture capitalists from the Canadian Venture Capital Association
• Government and non-profit financing options There are a number of government and non-profit organization financing programs, some of them aimed at specific target groups, such as youth and Aboriginals. Many of them include valuable hands-on training, planning assistance and mentoring services. Some of the main financing programs include:
  • The Canada Small Business Financing (CSBF) Program can help businesses get term loans of up to $250,000 to help finance fixed assets required for the operation of the business, e.g., purchase or improvement of property or equipment.
  • The Ontario Community Futures Development Corporations provides repayable financing of up to $150,000 on commercial terms through loans, loan guarantees or equity investments to help finance new or existing small businesses that help maintain or create jobs in rural and northern communities.
  • The Canadian Youth Business Foundation (CYBF) Loan Program provides loans of up to $15,000 to young entrepreneurs between 18 and 34 to help cover start-up costs.
  • The Self Employment Assistance program provides financial support to unemployed people eligible for unemployment assistance to get their businesses up and running.
  
  There are also a number of other government assistance programs. For a complete listing check Industry Canada's website.

The truth is that getting financing for a new business is challenging.

So, when you meet with a banker or investor, be thoroughly prepared. Remember, you're asking for money—and they'll want to know how you intend to use it and pay it back.

• Make sure you have your business plan, executive summary and financial statements with you—and be sure you know them inside out.
• Know your credit rating and be able to show that it's strong (if it is), or that you're taking concrete steps to improve it (if it isn't).
• Be well informed about your business and the industry it's part of.
• Be able to show what you plan to do with the money and why you can be trusted with it.

Finally, be persistent. The likelihood is that you'll be turned down by a number of lenders or investors before finding one that will make that all-important leap of faith.

Expert help

Once you've got your financing underway, you can turn your attention to the other details involved with start-up. Since you're likely to need advice with some of them, you should consider hiring expert help before you go any further—that is, if you haven't already.

There are four experts you probably can't do without, if not now, then in the near future:

• a lawyer, who can help you:
  • form a corporation or partnership
  • purchase a business or franchise
  • review start-up documents such as loan agreements, leases and contracts
  • deal with any copyright, patent or trade-mark issues
  • represent you in the event you get involved in a lawsuit
  • wind down or sell your business
• an accountant, who can help you:
  • present your business plan to potential investors
  • buy a business or franchise
  • prepare budgets and cash flow statements
  • set up your financial record-keeping system
  • prepare GST, RST, payroll deductions etc. and deal with the Canada Revenue Agency (CRA)
  • prepare your income tax return
• an insurance agent or broker, who can:
  • provide advice on the kinds of insurance and coverage you need
  • arrange for coverage
• a banker, who can:
  • help with all aspects of business financing, from start-up and operating loans to business mortgages and leases to lines of credit

Depending on the type of business you're starting up—and your own skill set and those of any partners—you may also want help at some point from other experts, including a:

• business valuator
• marketing consultant
• graphic designer
• website designer
• computer consultant

When hiring experts, check to see if they're experienced in dealing with small business matters and that their fees are reasonable. The best way to find someone you can trust is to ask for recommendations from colleagues, family and friends, particularly those in business for themselves. You can also ask your local Small Business Enterprise Centre (SBEC).

Make sure you meet with prospective candidates to be sure you can be comfortable working with them. Ideally, you and your lawyer/accountant/insurance agent/banker should work as a team.

While hiring experts may seem like a big expense, particularly at start-up when finances can be tight, they're likely to save you money in the long run. As one SBEC manager puts it, "You shouldn't be calling experts when you're in trouble. You should be calling them to make sure you don't get into trouble. It's all about prevention."

All small businesses are subject to certain laws and regulations and as a small business owner it's your responsibility to know which ones apply to your business and make sure you follow them—this is definitely an area your experts can help you with.

Incorporating your business

If you've decided to incorporate provincially, you'll need to:

• fill out and file articles of incorporation with the Ministry of Government Services
• submit a Newly Upgraded Automated Name Search (NUANS®) report (unless you're incorporating as a numbered company)—check the Yellow Pages under the heading "Searchers of Record" for a name search company
• pay a fee of $360 (if paying by cheque, make it payable to the Minister of Finance)

You may submit your documents:

• in person or by mail to the Companies and Personal Property Security Branch Public Office in Toronto:

393 University Avenue, Suite 200
Toronto, ON M5G 2M2
Toll-free: 1-800-361-3223 (in Ontario)
Tel: 416-314-8880
Fax: 416-314-0102

• in person at one of the Land Registry Offices in the following municipalities:

Barrie
Hamilton
Kingston
Kitchener
London
Oshawa
Ottawa
Peterborough
Sarnia
Sault Ste. Marie
Sudbury
Thunder Bay
Welland
Windsor

The addresses and telephone numbers of these offices are in the Blue Pages of your telephone directory under the heading "Land Registration."

• electronically, via either of the following two service providers under contract with the Ministry:

Cyberbahn Inc.
Toll-free: 1-800-806-0003
Tel: 416-595-9522
www.cyberbahn.ca
OnCorp Direct Inc.
Toll-free: 1-800-461-7772
Tel: 416-964-2677
www.oncorp.com

If you want to provincially incorporate a non-profit organization, check with the Ministry of Government Services. You can also call the Ministry at 416-314-8880 or 1-800-361-3223 toll-free in Ontario.

Having an experienced lawyer or accountant look after your incorporation is helpful. He/she can make sure your incorporation forms are filled out properly, saving you possible problems down the road.

Your lawyer or accountant can also tell you whether or not it's advisable to incorporate federally. For more information on federal incorporation, both for for-profit and non-profit organizations, contact Corporations Canada.

Government programs

Both the federal and Ontario governments have been working hard to make it easier for small business owners to comply with their programs. You can now apply or register for the following federal and provincial programs using Business Registration On-line, available through the Canada Revenue Agency (CRA) website in partnership with Ontario Business Connects:

• name registration
• corporate income tax
• Goods and Services Tax (GST)
• Retail Sales Tax (RST)
• payroll deductions
• Employer Health Tax (EHT)
• Workplace Safety & Insurance Board (WSIB)

Registering your business name

If you've incorporated your business, you've already registered your business name.

If you've chosen not to incorporate, you'll need to register your business name with the province of Ontario, unless you're operating a sole proprietorship under your legal name. (Adding even one word to your legal name, e.g., Enterprises or And Company, requires registration.)

Registration is easy and quick.

You can register your business name:

• online via Ontario Business Connects or at any Ontario Business Connects workstation
• in person or by mail at the: Companies and Personal Property Security Branch

393 University Avenue, Suite 200
Toronto, ON M5G 2M2
Toll-free: 1-800-361-3223 (in Ontario)
Tel: 416-314-8880
Fax: 416-314-0102

The registration fee is $60 through Ontario Business Connects and $80 by mail. Registration is valid for five years.

Before registering your business name, check to see whether the name you're planning on registering is already in use. If it is, choose a different one.

You can't do a name search via Ontario Business Connects, but you can do it through any Ontario Business Connects workstation. There are 140 workstation locations across Ontario. Your local Small Business Enterprise Centre (SBEC) may have one, or check for the one nearest you at: www.mgs.gov.on.ca. The fee for a name search is $12.

Taxes

Income tax

Businesses must pay taxes on their income to both the federal and provincial governments.

Your income taxes are calculated on your profit—your gross income or revenue—minus your legitimate expenses, which include the cost of:

• office rent and maintenance
• mortgage interest and property taxes on property you own and use in your business
• leased equipment
• cost of buying or manufacturing any goods you sell
• delivery, freight and transportation expenses
• utilities
• insurance premiums
• fees for licences and permits
• fees for membership in a trade or commercial association
• legal, accounting and other professional fees
• business advertising
• business travel
• business entertainment
• employee salaries and benefits

For more details, visit the Canada Revenue Agency (CRA) but, remember, when it comes to income tax, having a good accountant can really pay off. An accountant will be able to help you take advantage of all your legitimate expenses, so you don't overpay your taxes.

Goods and Services Tax (GST)

The 6 per cent GST applies to almost all goods sold and services provided in Ontario. (One notable exception is goods and services supplied to the government.)

If your business provides GST-taxable goods or services and has annual revenues of more than $30,000, you must register for the GST. You do this by applying for a business number with the CRA either by phone at 1-800-959-5525, online at www.businessregistration.gc.ca or online at Ontario Business Connects.

Once you register for the GST, you must charge GST to all your customers and send it to CRA. You can claim a refund on the GST you pay to get goods and services you need for your business.

If your annual taxable sales are $500,000 or less you must remit GST quarterly and report annually. If your sales are more than $500,000 but less than $6 million, you must report monthly and remit quarterly. And if your sales exceed $6 million, you must report and remit GST monthly.

Even if you don't expect to have revenues in excess of $30,000 in your first year of business, you may want to apply for a GST number and charge the tax anyway. You'll be able to get back the GST you pay on the goods and services your business buys—and not collecting it sends a message to your customers that your business is small potatoes, which may not be the impression you want to give.

Retail Sales Tax (RST)

The RST (also known as the Provincial Sales Tax or PST) applies to most goods sold in Ontario, as well as services to install, repair and maintain taxable goods and equipment. RST also applies to all prepared food products, where the total charge is more than $4.

The general RST rate in Ontario is 8 per cent. Special rates apply to accommodation for less than a month (5 per cent), admissions over $4 (10 per cent) and alcoholic beverages (10 per cent and 12 per cent, depending on the method of distribution).

If your business sells RST-taxable goods or services, you must charge RST, collect it and remit it to the Ministry of Finance. You must also register with the Ministry of Finance and get a registration certificate and provincial tax number. You can do this at the Ministry of Revenue or at Ontario Business Connects.

For more information on the RST, call the Ministry of Revenue tax office nearest you. You can get a list from the Ministry Information Centre or by calling 1-800-263-7965.

Payroll deductions

If you have employees, you'll need to make payroll deductions, both federal and provincial.

The federal payroll deductions are:

• Employment Insurance (EI)
• Canada Pension Plan (CPP)

It's your responsibility to get a payroll account with the Canada Revenue Agency (CRA). You'll have to deduct EI, CPP and income tax from the amount you pay each employee and send those amounts, along with your share of CPP and EI premiums, to CRA.
The provincial payroll deductions are:

• Workplace Safety & Insurance Board (WSIB) Premiums—to determine whether or not you need to pay these payroll deductions, check with the WSIB office nearest you, listed on their website.
• Employer Health Tax (EHT)—unless your payroll exceeds $400,000, you're not required to pay this deduction.

As an employer, you hold payroll deductions in trust for the government until you submit them, so it's important to keep these amounts separate from the operating funds of your business.

Business records

You're required by law to keep thorough, organized books and records—and, in the case of income tax, you have to hold onto them for at least six years after the taxation year they relate to.

This can be somewhat onerous, particularly if you hire employees.

If you have an accountant, he/she can either set up and do your books for you, help find you a good bookkeeper (bookkeepers are generally less expensive than accountants) or recommend a good bookkeeping and accounting software program so you can do it yourself.

Licences

Many types of businesses require licensing from the federal, provincial and/or municipal government. These requirements could include an operating permit, special permission to operate in your chosen location or specific qualifications for you and/or your employees.

To find out if your business requires government permission to operate, contact your local Small Business Enterprise Centre (SBEC) or the Canada-Ontario Business Service Centre at 1-800-567-2345.

As well, each municipal government has the authority to issue its own business licences within its jurisdiction. While not all types of businesses require a municipal licence, many do, so check with the appropriate local officials to find out if your business does. Contacts for your local government can be found in the blue pages of your telephone directory.

Zoning

All municipalities have zoning and building regulations. You'll have to check with municipal authorities to ensure that your business conforms. Again, your local Small Business Enterprise Centre (SBEC) or the Canada-Ontario Business Service Centre.

Insurance

Property insurance, business interruption insurance, general liability insurance, key person insurance, disability insurance, errors and omissions insurance. the types of insurance available today seem almost endless, so how do you go about protecting yourself from risk without breaking the bank?

Here's where having an experienced insurance agent or broker can really make a difference. He/she can help you evaluate the risks in your particular business and advise you on the coverage you need, as well as the amount of coverage.

Often your agent or broker can find a package geared to your particular kind of small business, which is less expensive than purchasing individual insurance policies.

And if yours is a home-based business, don't overlook the need for business insurance. Your home insurance policy may not cover business assets—and worse yet, having your business located in your home may void your regular home insurance policy, so you need to discuss all this with your agent or broker.

Renting (or buying) premises

Unless yours is a home-based business, you'll need to rent or buy premises. To do that, you'll need to determine a number of things, including:

• the kind of space you're looking for
• the location—its proximity to potential customers and clients, and the zoning for your type of business
• availability of parking
• supplier access
• security
• the cost to purchase, if you're going that route
• the amount of rent you're able to pay and whether it includes utilities and services
• the amount you're willing to pay for improvements, if necessary

Depending on your type of business, you may want to consider sharing space at first to keep expenses down.

You may also want to investigate the possibility of renting space at a business incubator. Both mixed-use and sector-specific business incubators are becoming increasingly popular because they provide hands-on management assistance, education, technical and business support services, networking resources and financial advice—and as a result, have a high success rate. For more information on business incubators, contact the Canadian Association of Business Incubators (CABI).

If you decide to rent premises, you'll need to sign a lease with the owner. Make sure your lawyer goes over it carefully and explains it to you before you sign it so that you know what you're committing to. Commercial tenancies aren't covered by the same landlord-tenant legislation as residential ones, and you need to be much more careful when renting commercial space.

If you decide to purchase, get help from a real estate agent who specializes in commercial properties and have your lawyer review your offer before you buy.

Business communications

Every business needs communications tools, some more than others.
Possibilities include:

• a computer—either a desktop or laptop, depending on whether or not you require portability
• software—options include:
  • word processing
  • accounting
  • contact management
  • presentations
  • videoconferencing
  • simulation (for employee training and assessment)
• an Internet service provider
• a cell phone and/or wireless handheld (a handheld offers access to e-mail, corporate data, the Internet and your personal organizer as well as having a phone function)
• a fax—either a machine or a program on your computer
• a photocopier—most fax machines include this function, but if your business requires a lot of copying, you'll probably want to go with a separate photocopier
• a scanner—to scan documents into your computer
• a document shredder—for disposal of sensitive information

Whatever your business, you should seriously consider creating and maintaining a website. A website is at the heart of e-commerce—conducting business on the Internet—and for an increasing number of businesses it's an essential tool in today's economic environment.

An effective website can help:

• coordinate your business operations with outside partners, suppliers, distributors and customers
• promote, market and sell your product or service around the world and around the clock
• reduce the costs and increase the speed of customer support and communication
• assist with market research

You don't have to spend a fortune to get a website that works well for your business. There are many independent web developers who can do the job for a reasonable price. Get recommendations from companies with websites you think are good.

Just as important as having a good website is ensuring that people can find it on popular search engines like Google, Yahoo! and AOL. That means you'll either have to learn the intricacies of search engine placement yourself, or find someone who knows. Ask people involved in e-commerce for their recommendations.

Finally, for more information on e-commerce, check with:

• the Canada-Ontario Business Service Centre. Its E-Business Info-Guide provides a wealth of information on what's involved in e-business, including how you can secure your website and transactions on the Internet.
• the Business Development Bank of Canada (BDC). It also offers valuable information on e-business and its site includes e-business relevancy and readiness diagnostics to help with e-business planning.
• the Royal Bank, which also has a comprehensive section on e-business.

Industry Canada also has a program, Student Connection, which provides businesses with specially trained university and college students who provide on-site, hands-on, personalized Internet training.

Hiring employees

While you may not need to hire employees at first, chances are you'll have to at some point, particularly as your business grows.

When you become an employer, you take on certain responsibilities that include:

• registering with the Ministry of Labour
• paying your employees on a regular basis
• making regular payments to the federal and provincial governments on behalf of your employees, and contributing your portion as well (Income Tax, Canada Pension Plan [CPP], Employment Insurance [EI], paid vacation and statutory holidays and possibly Workplace Safety& Insurance Board [WSIB] premiums and Employer Health Tax [EHT])
• maintaining records about your employees
• providing your employees with a workplace that's safe and free from discrimination
• motivating your employees and giving them constructive feedback
• providing training for your employees
• providing and maintaining any tools or equipment your employees need
• taking legal and financial responsibility for your employees' actions

Standards for employment and occupational health and safety are the responsibility of the Ministry of Labour, which administers and enforces the:

• Employment Standards Act
• Pay Equity Act
• Occupational Health and Safety Act
• Smoking in the Workplace Act

The Employment Standards Act covers things like:

• hours of work
• minimum wage
• public holidays
• overtime pay
• vacation pay
• equal pay for equal work
• benefit plans
• pregnancy leave and parental leave
• emergency leave
• termination of employment
• severance pay
• payments on termination
• retail business establishments

The Pay Equity Act provides for equal pay for work of equal value.

The Occupational Health and Safety Act covers the responsibilities of employers, supervisors, workers and suppliers with regard to occupational health and safety. This includes things like:

• providing a safe workplace
• preparing an occupational health and safety policy for the workplace
• informing employees about possible hazards and training them in the handling, storage, use, disposal and transport of any equipment, substances, tools and materials

The Smoking in the Workplace Act sets out clear restrictions on smoking in the workplace to limit exposure to second-hand smoke.

As an employer it's your responsibility to know what you're required to do under these Acts and ensure that you do it.

For more information, check with the Ministry of Labour. Your local Small Business Enterprise Centre (SBEC) will also be able to help you.
Before you hire anyone, you should:

• think carefully about your needs so you can be clear about what qualifications and skills you're looking for
• determine how and where you'll advertise
• prepare a list of questions to cover in a job interview
• determine whether or not training will be required, and if so, how you'll arrange for it
• investigate government programs that might help cover some of the costs, e.g., Human Resources and Skills Development
• establish policies for things like performance evaluations, wage increases, bonuses, vacations and ongoing training

When hiring, be clear about:

• the employee's duties
• the start date (and end date, if applicable)
• the hours of work
• the rate of pay
• benefits (if any) you're providing
• any probation period

And remember to ask for—and check—job references.

While it's not legally necessary to formalize an agreement between an employer and employee, it's often a good idea to have a written contract. That way, both parties know what's expected of the other and can refer back to it, if necessary.

Finally, when estimating the actual cost of an employee, use the 1.2 rule: take the employee's salary and multiply it by 1.2. This will compensate for days off for illness, vacations and statutory holidays.

Marketing your business

As any successful entrepreneur will tell you, you can have the best product or service around, but if people don't know about it, your business will fail. Marketing and advertising are critical to your success—and in the start-up stage, cost is always an issue.

So, once you've honed your message, how do you promote your business without breaking the bank? Get creative! Start by thinking like your target market. Where do your potential customers go to get information about a similar product or service and what would make them want to buy your product or service over the competition's?

Consider:

• getting business cards—make sure they state clearly what product/service your business provides
• sponsoring or co-sponsoring a charitable event—if you don't have money to spend, think creatively and come up with other ways you can participate, perhaps by bartering a service or product
• writing and distributing a news release—make sure you've got something newsworthy to say and that you target the right media people
• advertising in:
  • local, regional or national newspapers
  • magazines that cater to your target market
  • local radio spots
  • the yellow pages
  • billboards
• preparing a direct mail piece and sending it to members of your target market
• preparing and distributing flyers
• creating a website­you can often find a student to put one together for you and help make sure your site gets prominent placement with popular search engines like Google and Yahoo
• organizing a launch event to attract media and/or customer attention—this usually works best if you tie the launch to helping to raise money for a worthwhile cause or non-profit organization
• networking—join various organizations, including any industry organizations, to meet new people, including new potential customers and suppliers

Spotlight on. Redline Promotions

When brothers Lance and Mike Coon told their parents they wanted to start a business renting games, activities and food-making equipment for corporate and kids' events—things like inflatable slides and bouncers, Velcro Olympics, mini cars and trikes and carnival games—"they thought we were crazy," laughs Mike. "But they didn't try and talk us out of it."

At the time, there were only three similar companies operating in the Toronto area and the brothers' research indicated the market could handle a fourth. As well, Lance had experience in the industry, having worked for a similar company.

But from the start, it was one challenge after another, beginning with trying to get financing. "The banks just didn't get it," says Lance. So the brothers scraped together $5,000—some from savings, some from their parents—bought two games from a company going out of business and set up shop in their parents' garage in Scarborough under the name Redline Promotions.

Then came their next challenge—finding a company to insure the business. "Ours is a hard business to describe. It's also hard to convince people that it's really not that risky, " says Lance. "We phoned every insurance company in the book and followed up referral after referral until we finally came across a company that would do it."

Next came the challenge of getting licences. "Ours is a very regulated industry," says Lance. "Not only did the company have to have a licence to operate, but every single piece of equipment had to have its own licence as well."

Then there was the challenge of getting customers. "The first few years were really hard," recalls Mike. "We checked the special event and kids' event directories for leads. Made cold calls. Did mail-outs."

And because hiring employees proved difficult—"Great staff is really hard to find."—they also found themselves delivering the games and supervising them.

"We were working all the time," says Lance. And taking most of the money they were making and putting it back into the business to buy more games and equipment so they could stay competitive.

At the end of the second year, business had almost doubled and they were doing well enough to move out of the garage and rent space in an industrial complex.

That was eight years ago and since then, they've moved twice more. The company averages 100 events a month, employs 15 during the peak months of May to October and owns more than $500,000 in games, activities and food-making equipment.

As for Mike and Lance, they're still working 80-100 hours a week—but loving every minute of it. "We both like the challenge, the thrill of building something," says Mike. "And we like the fact that we never know what's going to happen when we go into work. Every day is different."

Spotlight on. Ballistik Hockey Inc.

The concept is simple. Combine demand for high-quality, reasonably priced Canadian hockey equipment with the rising growth of online commerce.

That was Steve Sutherland's idea when he launched Ballistik Hockey Inc. in 2001.

His approach involved recruiting player reps to try his composite hockey sticks and spread the word locally and across Canada, while at the same time establishing an e-commerce website to reach the rest of the world.

Today the Ottawa-based company has player reps in every major Canadian city, American state and countries as far-flung as New Zealand, Switzerland and Sweden—and customers from across Canada and around the globe.

Ballistik uses its website to greatest advantage, something the company has learned how to do by trial and error.

"We're learning as we go," says Steve. "The big thing is getting people to our site. Everything we do now is geared to that. There are so many websites out there. The trick is to get our site front and centre."

So, how did they go about getting serious web presence?

"It's a science", says Steve, who points out that the company couldn't afford to hire expensive consultants, so he and Richard Game, his vice president of marketing and business development, have had to learn about it themselves.

As Steve points out, a web presence is more than just a website. The reality is, 80 per cent of all orders come via search engines, which means that getting placement on sites like Google, Yahoo! and AOL is critical.

Steve and Richard experimented with different key word search terms, meta-tags and cross links to ensure their site appears on the first page of popular search engine sites.

"That kind of placement is essential", says Steve. "If you're not on the first page, you might as well not be there at all."

Having hockey team sites link back to them has also helped get them more hits, something search engines pick up on, which also ensures higher placement.

Steve and Richard also concluded it was worth it to pay search engines for sponsor links, which means that Ballistik's name and link appear in the right-hand side of the first page that opens during a search for "composite hockey sticks."

All their research and experimentation has paid off. In the last year, Ballistik's sales have increased more than 100 per cent and that's given them a new challenge: meeting all the orders that are flooding in.

Business start-up checklist

By this point you should have:

• interviewed and hired expert help
• registered your business name
• registered for GST
• registered for RST
• registered with the Ministry of Labour
• registered with the Workplace Safety & Insurance Board (WSIB)
• opened a business bank account
• set up an accounting system
• checked to see what kinds of insurance—and how much coverage— you need and arranged for it
• checked to see if you need a business licence (or licences) and applied for it (them)
• checked land use and zoning
• leased or purchased appropriate business premises—and equipment— and set up your space
• purchased your communications tools
• determined your employee needs and hired capable people
• determined your marketing initiatives and launched them

Once you've completed all that, you're in business!