Archive for February 7th, 2011

Coming to Canada as a business immigrant

Starting a business is an excellent way to start your professional or career life in Canada.

Whether you are planning to come to Canada as a business immigrant, foreign investor or self-employed person, Hineni Media has a variety of resources to help you

Start your business in Canada

Canada is home to many world leading businesses and that does not happen by chance: the country combines everything a business needs to be successful, making it attractive to anyone wishing to invest in a new country and contribute to its growth.

If you have a great business idea and are ready to work hard to build it from the ground up, then you may wish to start your own business. But if you want to hit the ground running and avoid some of the common start-up pitfalls, then buying an existing business or a successful franchise may be a better option for you.

1) Start your own

Applies to: All of Canada

Are you interested in moving to Canada to start a business? If you are an experienced business person, you may be eligible to immigrate under the Business Immigration Program.

You can apply as an entrepreneur or self-employed person.

•Entrepreneurs need business experience, a minimum net worth of $300,000 and commit to owning and operating a business in Canada.
•Self-employed persons need to contribute to the cultural or athletic life in Canada, or purchase and manage a farm.

2) Buying a business or franchise

Buying into a franchise in Canada is a great way to start your own business and establish yourself in your new country.

Canada is home to the second largest franchise industry in the world, with over 75,000 units currently operating. Annual sales from Canadian franchises add up to over CA$100 billion, and over 500 franchisors from the US have branched out into the Canadian market.

What is franchising?

Franchising is a way of doing business where the franchisor authorises an individual or group (the franchisee) to offer, sell or distribute goods or services under their professional strategy or marketing plan. It is very effective for establishing and developing a brand and achieving a large market share. Franchises in Canada are generally classed as either ‘product or service’ or ‘business format’. While most franchises usually are more one category than the other, many still combine both aspects.

Benefits of buying a franchise
Buying into a franchise gives you the ability to run your own business and get involved with an established brand. Entering into a franchise as a newcomer to Canada can be a great idea, as there is a lower risk of failure and you’ll have the added security of start-up help.

There is a vast array of franchise opportunities ranging from coffee and pizza restaurants to gyms and home services. Start out by looking within a field of business that holds particular interest for you, or one in an area that you’re already know a lot about.

Be prepared for the franchise business
Starting a franchise can seem like a safe bet with guaranteed success, but there are pitfalls of which you should be aware. Thousands of people join the franchise community every year in Canada, and while statistics show that most prove to be successes, not everyone is cut out for it and it is imperative that a prospective franchisee knows what they’re in for.
It is important to note that purchasing a franchise can be expensive, with steep start-up and ongoing costs, and that you will be required to follow the guidelines set out by the franchisor. It is recommended you do your homework when considering with the type of franchise you’d like to buy. Some franchisors can be exceptionally strict with their regulations, so if you find it hard to take direction or prefer to go your own way, it is advisable to go with a franchisor who is more relaxed with their guidelines.

On the flipside, having rigid instructions can be beneficial when you’re unsure of a new industry and new to a country. This discrepancy also extends to the costs involved. Start-up and ongoing expenses can vary greatly depending on the industry and how established the franchise is.

Keep in mind that you have more to lose than the franchisor – you’re the one investing your money and livelihood in the business. You can and should ask a lot of questions and research the franchise as much as you can before getting involved and expect the same of the franchisor. Mutual respect and honesty is the best place to start.

Facts about franchising in Canada:
•97% of franchises that open in Canada are still in business five years later, and a full 86% are still operating under the original ownership.
•A new franchise opens in Canada every two hours.
•The average franchise fee in Canada is $25,000.
•One franchise operation exists for every 450 Canadians.

Looking for expert advice?

Hineni Consultancy

Business Opportunities How-to PDFs

Starting a Restaurant, Bar or Coffee Shop in Alberta
Starting a Convenience Store
Starting a Bed and Breakfast
Starting a Childcare Centre
Starting an Alternative and Complementary Health Care Business
Starting a Consulting Business
Starting a Personal Care Home for Seniors
Starting a Beauty Salon/Barber Shop/Esthetics/Tanning

Contact Hineni Consultancy  or  our Business Opportunities Database    if you are a business immigrant looking for more information on buying a small business