Launching A Business In New Brunswick

New Brunswick is an excellent place to start a small business, with a business-friendly environment and a booming entrepreneurship scene. The province offers a range of resources and support programs to foster economic development and make it easier for entrepreneurs to get their ventures off the ground. From funding and training to business plan development and market research tools, there is no shortage of assistance for those looking to start a small business in New Brunswick.

Funding and grants

Government Funding and Grants:

New Brunswick's government offers various funding programs and grants to support small businesses. The province is committed to fostering entrepreneurship and economic development. Here are some notable government funding sources and grants:

• Small Business Startup Portal: This portal helps small businesses find and secure government funding. One business obtained a $17,000 grant to hire and train staff with specialized skills.
• Funding Database: The Funding Database offers access to numerous grant, loan, and assistance programs from the Canadian government. It currently includes 264 grant programs, 147 loan programs, and 231 assistance programs.
• Small Business Investor Tax Credit: This program increases access to equity financing for small businesses and encourages investment by NB residents.
• Opportunities New Brunswick: This is the province's economic development agency, providing information on business costs, incentives, and success stories. They offer support throughout the business journey, from starting up to increasing exports and productivity.
• Atlantic Canada Opportunities Agency (ACOA): ACOA supports business development across Atlantic Canada, including New Brunswick. They provide guidance on funding, planning, research, and regulations.
• New Brunswick Association of Community Business Development Corporations: This organization offers financial and technical services to entrepreneurs in New Brunswick.
• Industry-Specific Grants: New Brunswick offers grants for specific industries, such as agriculture, aquaculture, fisheries, film and media, mining, and tourism. These grants support activities like equipment purchases, business expansion, hiring, and export development.
• Regional Development Grants: Some grants target specific regions within New Brunswick to increase employment and economic growth. For example, the Exterior Signage Grant Program provides up to $3,000 for businesses in Dieppe to install bilingual outdoor signs.
• Entrepreneurial Assistance: New Brunswick provides support for entrepreneurs from diverse backgrounds, including former military personnel, young farmers, and Indigenous communities. For instance, the JEDI Aboriginal Development Fund offers up to $8,000 for business and community economic development planning in First Nation communities.

Private Funding:

In addition to government funding, small businesses in New Brunswick can explore private funding options:

• Private Investors: CanadaStartups.org mentions the availability of 862 private funding programs offered by private investors for small business owners.
• Banks and Financial Institutions: Traditional banks and financial institutions are a common source of loans and financing for small businesses.
• Angel Investors and Venture Capital: High-net-worth individuals or venture capital firms may invest in businesses with high growth potential.
• Crowdfunding: Crowdfunding platforms allow businesses to raise funds from a large number of individuals, usually in exchange for rewards or equity.

Steps to Access Funding:

To access funding for your small business in New Brunswick, consider the following steps:

• Develop a Business Plan: Create a comprehensive business plan that outlines your business idea, financial projections, and funding needs. Seek expert guidance to perfect your plan.
• Explore Funding Options: Research the various funding options available, including government grants, loans, and private funding. Understand the eligibility criteria and application processes.
• Build Connections: Network with other entrepreneurs, business support organizations, and government agencies to stay informed about funding opportunities.
• Prepare a Strong Application: Collaborate with experts or mentors to develop a compelling application that highlights your business's potential impact and aligns with the funding criteria.
• Seek Ongoing Support: Starting a small business is a journey. Stay connected with business support organizations and mentors who can guide you through the funding process and other aspects of launching and growing your venture.

Business structure and registration

The first step in starting a business in New Brunswick is to determine whether you need to register your business. Sole proprietorships in New Brunswick are not required to register if they are operating under the owner's name. However, if they intend to operate using a different business name, they must register that name. On the other hand, corporations are required to register before commencing their operations.

The two most common business structures in New Brunswick are sole proprietorships and corporations. A sole proprietorship is a business structure where a single individual owns and operates the business, making them personally responsible for its profits, losses, and liabilities. They are cheaper to create than corporations and have fewer legal requirements. A corporation, on the other hand, is a legally separate entity owned by shareholders and governed by the Business Corporations Act (NB). It can be completely owned and operated by non-residents.

When choosing a business structure, it is important to consider the pros and cons of each option. Sole proprietorships offer a simple structure and reporting, while corporations provide legal protection and potential tax benefits. Corporations are also more complex and expensive to set up and maintain.

To register a sole proprietorship in New Brunswick, you need to search for name conflicts and submit a "Name Reservation Request" through the SNB Online portal. This process includes a $112 fee. For corporations, there are two options: registering as a Federal Corporation or a New Brunswick Corporation. Registering as a Federal Corporation involves conducting a NUANS name search, incorporating with Corporations Canada, and completing the New Brunswick extra-provincial registration process. This includes additional fees and requirements, such as appointing a local "Attorney for Service".

In addition to registering your business, you will also need to set up tax accounts, obtain necessary licences and permits, and stay compliant with annual and ongoing obligations. These obligations vary depending on the type of business structure you choose. For example, sole proprietorships must file a T1 Tax Return if they meet certain criteria, while corporations have more demanding obligations, including filing annual returns and maintaining a minute book.

Business plans

A business plan is a vital aspect of giving your business the best chance of success. It is also necessary to obtain business loans, grants, or financing from venture capitalists. Here are some key points to consider when creating a business plan:

• Verify your idea: A business plan forces you to take a realistic look at your business idea, removing emotion from the equation and verifying that it is profitable.
• Understand the market: Research the industry or market you want to join, you may learn something important to make your business a success. You may also learn that the market is not yet ready for your idea.
• Calculate startup costs: Create a list of items you need to have on hand before you can open the business, including employees, along with estimated costs.
• List potential locations: Put together a list of locations where you may want to operate the business. Determine whether you’d prefer to rent or buy a location.
• Project your results: Make projections about sales and income, helping you set goals and determining the viability of the business.
• Sell your idea: You may feel strongly about your idea, but trying to encourage that same feeling in other people can be a challenge. The business plan lets you sell your idea, backed up by facts and statistics.
• Develop a marketing plan: You can list your plans for marketing and advertising your business as part of the business plan.

New Brunswick's provincial government does not require new businesses to submit a business plan during registration. However, you can use the New Brunswick business plan template to help you formulate a plan. The CBDC also provides help with business plan development.

Location and premises

The location of your business in New Brunswick can be vital to its success. When choosing a location, consider if it's the right environment for your business. You may pick a location because:

• Your suppliers or distributors are nearby.
• The area is known for the products or services you provide.
• Businesses in the area complement yours.
• The cost of buying or leasing is affordable.
• The area is a growing business hub with many future opportunities.
• Research different locations – gather demographic information on the area you’re interested in, including population, age, and income to see if it’s the right market to sell your product or service.
• Find out about other businesses in the area – other local businesses might complement your business's product or service.
• Research your competitors – find out your competitors' locations and the type of premises they use to sell products and services.
• Contact local councils – find out about the area, any future or planned development, zoning, rates, and business activity in the region.
• Consider the current and future needs of your business – make sure your marketing plan is current and your chosen location is in line with your business goals and objectives.

Type of Business Premises

The type of premises you may need will depend on your business type. For example, if you:

• Sell products, you may require a retail store.
• Provide a professional service, you may only need a shared office with access to a meeting room for client meetings.

Types of business premises include:

• Warehouses, manufacturing plants, or storage facilities.
• Home offices for home-based businesses.
• Shared commercial offices, hubs, or co-working spaces.
• Temporary premises, such as market stalls or pop-up businesses.

When choosing business premises, make sure you also consider the future needs of your business.

Buying or Leasing Commercial Property

If you’ve decided on the type of premise you want, you'll need to decide if you want to buy or lease the space. Buying or leasing commercial property is different from engaging in residential agreements. Accountants, solicitors, and business advisors can advise on whether you should buy or lease your business premises and equipment. An accountant can advise you on the tax implications of each option.

If you’re considering signing a lease, make sure you understand and agree with the clauses in the lease. It's important to seek financial and legal advice before signing any contract to avoid expensive mistakes.

Running a Home-Based Business

Operating your business at home can be cost-effective when starting. However, you will need to:

• Obtain local council approval.
• Ensure that your insurance policy covers business activities.
• Ensure a safe work environment if you intend to employ people.
• Understand the tax implications for your business.

Contact your local council to discuss their requirements for home-based businesses. Failing to obtain the right approvals to operate your business may result in fines and having to find alternative business premises.

Business taxes

The business structure you select will play a role in the types and percentages of taxes you must pay. The New Brunswick government has compiled resources to help you understand common taxes for businesses in the province, including:

• Corporate income tax law
• Free tax help for small business owners
• Federal and provincial corporate income tax rates

Depending on the type of business you are running, you may be subject to other business taxes in New Brunswick. You may also qualify to receive tax credits.

Required Business Licences and Permits in New Brunswick

Another form of government regulation for New Brunswick businesses is licences and permits. Local, provincial, and federal government officials may require these permits and licences. The best place to search for necessary permits and licences is BizPaL, an online database that is a helpful resource for explaining what you need to operate your business properly.

In addition to your provincial licences and permits, you may need local permits and licences in the major cities in New Brunswick, including Saint John, Moncton, and Fredericton.

Frequently asked questions