Starting a business in a new country can be both exciting and challenging. If you’re an immigrant to Canada, there are specific steps you can take to set yourself up for success. Here are four key tips to help you get your business off the ground in Canada:
1. Build Your Credit Score
When you’re new to Canada, you may not have a credit history, which is essential if you plan to apply for a business loan. Fortunately, building your credit doesn’t have to be difficult. One effective way to start is by getting a credit card and using it responsibly. After six months of consistent use, you’ll establish a credit score that Canadian banks can rely on to evaluate your loan applications.
Here are two important principles to keep in mind when managing your credit:
- Make Payments on Time: Always ensure that you make at least the minimum payments on time. Timely payments help build your creditworthiness.
- Maintain a Low Credit Utilization Ratio: Keep your credit usage at around 20% or less of your available limit. This demonstrates responsible borrowing and helps boost your score.
2. Set Aside Personal Savings
When starting a business, it can take time before your venture becomes profitable. To avoid financial stress, it’s important to have enough savings to cover your personal expenses while you’re working on getting your business off the ground. Ideally, you should aim to have at least six months’ worth of personal expenses saved.
If you’re not sure how to begin saving, consider finding temporary work. The Government of Canada’s Prepare to Work in Canada page offers helpful resources for newcomers, including:
- Job search strategies
- Credential assessment services
- English or French language classes
- Free resources and services available in your local area
3. Embrace Canadian Culture
Understanding Canadian culture is crucial for your business success. Knowing your potential customers, their preferences, and how they prefer to shop will help you tailor your products and services.
To gain a deeper understanding of Canadian culture, get involved in your local community. Whether through volunteering, joining business associations, or participating in community events, engaging with long-time Canadians can provide invaluable insights into local customs and consumer behavior.
4. Seek Mentorship and Support
Starting a business involves a steep learning curve, especially when you’re new to Canada. Finding a mentor can be a game-changer. A mentor with business experience can offer advice, connect you to valuable resources, and guide you through the challenges of starting a business in a new environment.
In Canada, there are various programs and organizations designed to support newcomers who want to start their own business. Take advantage of training, mentoring, and networking opportunities to increase your chances of success.
By following these tips, you can confidently navigate the process of starting your business in Canada. Patience, preparation, and building connections are key to creating a thriving business in your new home.