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Canada boasts thousands of home-based businesses, and these busy entrepreneurs have to contend with all the complexities of running a successful business, plus the idiosyncrasies of doing so from their home. It’s fair to say that operating a home business poses no small challenge, but luckily there are countless tools and third parties available to help make it a little easier.
Here we’re going to take a close look at some of these tools, to understand the various options and see how they can help you run your business more efficiently. Let’s start with a comprehensive list of home business solution providers, shown in the table below. These companies help in a range of ways, for varying cost. More information can be found on each company by clicking on their name.
Canada boasts thousands of home-based businesses, and these busy entrepreneurs have to contend with all the complexities of running a successful business, plus the idiosyncrasies of doing so from their home. It’s fair to say that operating a home business poses no small challenge, but luckily there are countless tools and third parties available to help make it a little easier.
Here we’re going to take a close look at some of these tools, to understand the various options and see how they can help you run your business more efficiently. Let’s start with a comprehensive list of home business solution providers, shown in the table below. These companies help in a range of ways, for varying cost. More information can be found on each company by clicking on their name.
For legal and tax reasons it’s important to distinguish exactly what we mean by a “home business” - as it’s not the same as working as a freelancer, or performing gig work. A home business is a registered business whose primary office is in the business owner’s principal residence. You don’t have to own the property you’re running your business out of, but you do have to live there.
Most home businesses focus on service or ecommerce and so do not require much by way of legal set-up, but some do. If your business is in agriculture, fishing, forestry, mining, energy, broadcasting, telecommunications, textiles, financial services, cultural trade or health, you must make sure you have the appropriate licenses (federal, provincial or municipal) and are following federal regulations. In addition, each municipality has their own zoning restrictions which may impact whether you are permitted to run a home business, so always check your local laws.
Businesses should be registered with CRA and have a unique business number; this helps in multiple accounting and tax issues. Not every business is required to do this, but certain industries and provinces do mandate it - take a look here for more info. This step also means you need to properly structure your business as a sole proprietorship, a partnership or a corporation.
One of the difficulties of running a home business is that, even if you are the sole employee, the business still has to meet all manner of regulations, including accessibility, health and safety, privacy, environmental, tax, human resources, labelling and advertising. To stay on the safe side of the law, always check these requirements before starting operations.
As if the set-up wasn’t challenging enough, once your home business is operational there are countless processes and tasks that need to be addressed professionally, but that you may not have the resources or expertise to manage yourself. This is where external providers come in, and luckily there are so many small and home businesses in Canada that there are plenty to choose from. Let’s take a look at the major areas home businesses can access help in:
Getting paid on time and keeping accurate accounts is crucial, and accounting software can be enormously valuable in managing this. These tools allow you to perform all aspects of your bookkeeping, including sending out professional invoices and payment reminders, managing cash flow, accepting multiple forms of payment, reconciliation, inventory management, taxes and much more. Most of the popular tools rely on simple data entry from the user, and then automate the internal calculations, so you don’t need accounting expertise to keep your business’s finances in order.
Popular providers in this space include:
Basically all modern businesses need a functional website, and website building and hosting tools can significantly streamline your website development and management efforts. These online tools guide you through building a custom website (often using templates and basic drag-and-drop methods), host the website for you, and often provide marketing, sales and customer support services too. For anyone who is not a developer themselves, there is no better way to cost-effectively manage your online presence.
Popular providers in this space include:
Time is money, and properly tracking your hours on individual projects may become a surprisingly important task in your home business. There are many (often free) time tracking and management tools available, with some even integratable with accounting software.
Popular options in this field include:
Attracting customers is a major concern for most small businesses, and this requires a marketing strategy. Marketing is a lot more complex than it used to be, and to properly exploit both digital and traditional methods, a good marketing provider can be very impactful. Marketing providers can help with search engine optimization, graphic design, content generation, ad placement and marketing analytics. These methods can professionalize your marketing message, making your business more successful and building your brand.
Popular providers in this field include:
Not every home business needs professional printing solutions, but those that do will rarely be able to afford the apparatus needed to manage printing tasks themselves. Printing services cover such vital business items as business cards, marketing materials, personalized stationery, accessories, banners, signs, labels, promotional products, and more. Simple online tools allow for full product customization, including the use of your own graphics, so all your printed products share the same professionalism and quality.
Popular providers in this space include:
A range of software solutions are available to help you more effectively connect with your customer base, boosting sales and customer retention - a key factor in sustaining a home business. These solutions allow you to interact with your customers, log issues and manage them through to completion, and some even offer live chat options for instantaneous customer help.
Popular providers in the space include:
Accessing business financing can mean the difference between success and failure for many businesses, but most home businesses do not qualify for traditional business loans. So it’s important to have accessible, affordable financing options on your radar if you should ever need an injection of cash, for any reason. Luckily there are plenty of alternative and online lenders who cater to small and home businesses, even those without a long financial history, and loans up to $500,000 may be available in some cases.
Popular providers in this alternative financing space include:
Every business needs insurance, regardless of size, and home businesses are no exception. Many people believe that if you run a business from your home, your home insurance will cover it, but this isn’t the case. Home businesses are exempt from home insurance policies, and a separate, dedicated line of insurance is needed. This can only cost a few dollars a month, but will protect you against liability, property or equipment losses, and business interruption.
Common business insurance providers in Canada include:
Lastly, staying in touch with clients, discussing projects and working within a larger team all require access to reliable, cost-effective communication platforms.
Useful tools in this domain include:
With so many solutions to choose from, narrowing down your options is important. Consider the following to discover which providers will serve you best:
Yes, all home businesses will need to file taxes with the CRA. See here for more information. Many accounting tools will simplify this task for you.
Not necessarily, although many home businesses will require one. Take a look here for more information.
That depends on your industry, and whether it is federally, provincially or municipally regulated. In addition to general licenses, check your local zoning restrictions to see if you are allowed to run a home business.
Yes. Home insurance does not cover a home-based business, so you should get a separate policy for your business. While this is not a legal requirement, it is common sense.
Not necessarily; there are many accounting tools and software options that can help even novices manage their accounts, with minimal knowledge and effort. If you find these tools don’t cater to your specific needs, or if you struggle to use them, then you might consider an accountant.
The simplest and often most cost-effective way of establishing an online presence for your business is by using a website builder to create and host your website for you. This removes much of the legwork while still allowing you to have a customized, professional-looking site.
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