What is a Small Business?

The size of a business can be defined in many ways, for example by the value of its annual sales or shipments, its annual gross or net revenue, the size of its assets, or by the number of employees. Industry Canada often uses a definition based on the number of employees: a goods producing firm is considered "small" if it has fewer than 100 employees, while for service producing firms the cut-off point is seen as 50 employees. Above that size and up to 500 employees, a firm is considered medium-sized. The term " SME" (for small and medium enterprise) is used to refer to all these components of the economy together.

Starting a Small Business
There are several ways to start your own small business:
	Start your own company
	Buy an existing business
	Buy a franchise

How to Start a Small Business

Gather information - Research is the key to starting your own business. Conducting market research to determine the need for your product/ service is essential to forecast future sales. Other sources of business start-up information include the internet, your local economic development agencies, town office (city hall) and financial institutions. Talk to other entrepreneurs, and your family and friends to uncover more information about going into business.

Obtain Professional Advice - It is important to seek professional advice from an accountant and/or lawyer when starting your business. Accountants and lawyers can help you determine the best business structure for you. Do not be afraid to ask questions before choosing professionals; this is an investment in your business.

Prepare a Business Plan - Most financial institutions require a business plan when applying for a business loan. It is recommended that a business plan is prepared whether or not your business requires a loan. A business plan is a roadmap for your business outlining its production, operation, marketing, finance and human resource plans. An entrepreneur can measure his or her business’s actual performance by utilizing their business plan as a benchmark for success. It is important that your business plan is realistic and illustrates your best picture for success.