How to Start a Profitable Online Business in Canada

It has never been easier to start and run an online business in Canada. The amount of money you make online correlates with the amount of work you are willing to do, but virtually anyone can learn how to do it. Whether you want to start a home business or become the next eCommerce behemoth, the internet levels the playing field and offers endless legit business opportunities.

These days, everything is designed to be user-friendly for the average person. You don’t have to be a techie or even hire a website designer to start making money online.

However, one complication has remained: finding Canadian-specific information for starting a business online (or bringing an existing offline business into the Internet age). That’s the inspiration behind Online Business Canada, in fact. While the website covers individual challenges, this checklist is designed to guide you step-by-step through the entire digital startup process. You’ll need to learn more about some tasks on the list, which you can do as you go along without losing your place in the overall process.

Much of the process is the same as it would be for starting any business in Canada. However, you’ll find some steps are necessary for one type of eBusiness, but not for a different type. For example, you may need a robust eCommerce platform for online retail, or only a simple shopping cart to sell a few information products, or just a basic way to receive payments if you’re providing a service. Following our guide makes it easier to narrow down what you need, so you can skip or customize the process until it’s perfect for you.

• Figure out exactly what your business is offering and why it’s exceptional (also known as your Unique Selling Proposition). Dig into who your buyer is, and how you can best reach and serve them online. This information is critical to your strategic planning, from pricing to marketing.

• Open a business bank account and PayPal account. Even if you’re only operating under your name, having a business account will make it much easier to track income and expenses. It also makes it easy to save for your income taxes and GST/HST payments. Additionally, you can get a designated credit card to help track expenditures.

• Funding doesn’t have to be in place in the beginning, but it sure helps. Check out Government financing, Government grants for Canadian businesses, or private sector financing. Keep an ear to the ground for tech or innovation programs and grants that you may qualify for, just because you do business online. Consider crowdfunding if you have a particularly innovative idea.

• Manage your finances from day one. It’s critical in order to become and remain profitable. Plus, it will save you money and spare you from headaches at tax time. User-friendly accounting software is worth its weight in gold, such as the popular TurboTax Canada. From there, you’ll need to outline your budget and determine exactly how much you need to earn in order to be profitable and pay the bills.

• Define your revenue stream. How will you make money? Are you promoting services, affiliate marketing, selling digital or physical products? Research wholesale suppliers & get your inventory in place. Study your options and implement them immediately. You can change your mind or add to your income strategy later, but you have to start somewhere.

• Domain registration and selecting a website host is one of the most important steps you’ll take when starting an online business in Canada. We have unique requirements and legal concerns in this country that many newcomers are unaware of, which results in mistakes that waste both time and money. It’s so important that we have a separate checklist for choosing a website host to guide you through this step alone. We use GreenGeeks’ Canadian servers to host our sites. Tip: If you don’t want to start from scratch, check out over 1 million premium domains at Buy Domains.

• Choose an information management platform (such as WordPress). Most hosts now come with popular free platforms and feature easy installation.

• Choose a shopping cart or eCommerce platform that’s suitable for the Canadian market and beyond. If you intend to grow, make sure the platform can grow and expand with you.

• Accepting payments online is easiest (and most secure) if it’s included in the shopping cart or eCommerce platform you choose. Whether you process payments through a payment gateway or have an in-house solution, you’ll need to familiarize yourself with PCI security standards for account data protection.

• Hire a website designer or set about learning how to design the site yourself. Many website hosts, eCommerce platforms and information platforms (like WordPress) have a wonderful selection of templates and are made specifically for people who have little technical knowledge of design. Some of the better eCommerce platforms can also provide design services, such as Canada’s Shopify.

• Content is crucial to attract customers to your website and for organic search engine optimization. It will also establish your level of expertise and reflect the quality of your product or service. You’ll need to write or acquire high-quality content from day one. Freelancer is a popular site for finding freelance writers/bloggers.

• Online marketing is a natural fit for any online business. You’ll need to set up social media accounts, newsletter software, and so on. Whatever digital marketing method you use, try to call attention to the fact that you’re a Canadian business. A VL Omni survey recently found 62% of Canadians who shop internationally online, would rather shop domestically. Several other studies have come to the same conclusion. This step also includes keyword research, which is much easier with keyword research and competitive intelligence tools. Additionally, starting an affiliate program can accelerate your launch and bring in sales and conversions indefinitely.

• Start your traffic plan from day one. Incorporate Search Engine Optimization (SEO) for organic traffic, build legitimate backlinks to increase your search engine rank, use shareable images/infographics/memes to encourage social media sharing, etc. Your job doesn’t stop with publishing a website and generating traffic, however, you’ll need to track, analyze and adjust your strategy based on the data generated. The sooner you start tracking and testing, the sooner and faster your sales and traffic will grow. Use the Customer Relationship Management (CRM) tools that come with your information management or eCommerce platform, and set up Google Analytics.

• Exceptional customer service can give you a serious competitive advantage and provide invaluable insights. Web-integrated call management and tracking systems like SuiteCRM (free) facilitate multi-channel tracking and management of customer communications.

• Hiring a Virtual Assistant (VA) with a broad skill set and experience in online business, can be the best decision you make. If you don’t have to take the time in the beginning to learn and implement everything, you’ll launch and be profitable that much sooner. Try to find a VA that can help you with everything from managing your website to marketing, content and graphics design. A good VA doesn’t cost you money, she makes you money.

Frequently Asked Questions

Do I need a business license for an online business?

Once you know the name and address, the first step for many is business registration, which may include registering in multiple provinces if you intend to do business nationally. Contact your local branch of the Canada Business Network for information specific to your province. To find out how to apply for a business license or permit, search for information specific to your province on the BizPal search tool. The results will include the government resources you need.

How do taxes work for online businesses in Canada?

Tax information and reporting requirements for doing business online are available on the Government of Canada CRA website.

What about Canadian eCommerce sales taxes?

Tax information changes frequently so we won’t go into it in detail here. If you have a Canadian-friendly eCommerce platform, the taxes will be automatically calculated at the point of sale.

Are there specific laws that apply to online businesses?

The Canadian Office of Consumer Affairs offers an Internet Sales Contract Harmonization Template in Electronic Commerce, which covers contract formation, cancellation rights, credit card charge-backs and information provision.

Do I need insurance to operate an online business in Canada?

Business insurance for an online business is similar to offline business insurance, but the focus and amount of coverage may differ. For example, an eCommerce business will need to focus more on shipping-related insurance coverage, even if you only sell on Amazon. You’ll also need to consider insurance related to cyber security. Liability insurance is recommended for a home-based business in Canada. However, it can depend on what type of business you have and if you produce the product/technology yourself. “Besides vicarious liability, emerging tech companies may also need cover for business interruption arising from a cyber event, contingent business interruption, regulatory breaches and the fines associated with them, and user-generated content,” suggests Canadian Underwriter.

Can I just buy an existing online business?

If you’re looking for an online business for sale, check out reputable website-flipping marketplaces and use their escrow service for a safe transaction. Please read

Learning the Ropes

Many people who have been successful in online business, including myself, started with zero knowledge of how to do it. When I became interested in internet business opportunities and bought my first home computer, I didn’t even know how to use a mouse. It was also much harder to find legitimate information, and very little was specific to Canadians. You’re already way ahead of where I was back then.

There are many courses available online and they often come with suspicious promises of millions in profits or a fail-proof “system”. I suggest learning the basics from reputable sources, so you are better equipped to make wise decisions regarding which “advanced” courses provide true value.

Start with online business, eCommerce and digital marketing courses on Udemy. Udemy courses are low-priced or free, including many from recognized experts. Your local library is a great resource too, especially if you’re on a tight budget. Quite often the information in books is outdated to one degree or another, but they will provide a good unde

rstanding of the basics as you learn how to make money online in Canada.

This article is from Checklist: How to Start a Profitable Online Business in Canada