Starting a business can feel exciting but also overwhelming when you’re not sure where to begin. Many entrepreneurs in Newfoundland and Labrador start with a simple idea: a creative project, a consulting service, a small product line, or a way to serve a community they care about. For many 2SLGBTQIA+ entrepreneurs, businesses are also connected to identity and community. That might mean creating queer-focused products, building inclusive services, or simply wanting to work for yourself in a way that aligns with your values.
The good news is that starting a business doesn’t require having everything figured out on day one. Most businesses evolve over time. What matters most early on is understanding the basics: how to structure your business, how money flows in and out, and where to find support. Quadrangle’s Entrepreneurship Training Program can help you figure out what to prioritize when starting a business.
Below are six key things to think about when starting a business in Newfoundland and Labrador.
1. Do You Need a Business Plan?
One of the most common questions new entrepreneurs ask is whether they need to write a business plan before they start. In reality, it depends on the type of business you’re starting and what resources you need.
When You Do Need A Business Plan
A formal business plan is usually required if you are seeking external funding or formal support programs. Lenders and grant programs want to see that you’ve thought through how your business will operate and generate revenue.
You will often need a business plan if you are:
- Applying for loans or financing
- Seeking investors or partners
- Applying to certain entrepreneurship programs or incubators (note: a business plan isn’t required for Quadrangle’s Entrepreneurship Training Program)
- Launching a business that requires significant startup costs
A business plan typically outlines your target customers, pricing strategy, marketing plan, and financial projections. Even a simple plan can help clarify whether your idea is financially realistic. For guidance on how to make a business plan, check out this resource.
When You Don’t Need A Business Plan (Yet)
Many businesses start much smaller than that. If you’re launching a side hustle, creative practice, or consulting service, you may not need a formal business plan right away.
Instead, many entrepreneurs start by testing a minimum viable business idea:
- Offering your product or service to a small number of customers
- Learning what people are willing to pay for
- Adjusting your offering as you go
For example, an artist might begin by selling prints at local markets before opening an online store. A consultant might start by working with a few clients before building a full brand and website.
The most important early step is understanding (A) who your customers are and (B) what problem you’re solving for them.
2. Choosing Your Structure
Another early decision is how your business will be legally structured. The right choice depends on your goals, the size of your business, and whether you’re working alone or with partners.
Sole Proprietorship vs Corporation
Most small businesses begin as a sole proprietorship. This structure is simple to set up, inexpensive, and works well for freelancers, artists, consultants, and many service businesses.
As businesses grow, some entrepreneurs choose to incorporate. Incorporation can offer tax advantages and legal separation between the business and the owner, but it also involves more administration and accounting.
Cooperative or Social Enterprise Models
Some entrepreneurs (especially those building community-focused initiatives) explore cooperative or social enterprise structures. These models can allow multiple people to share ownership or prioritize social impact alongside profit.
This approach is sometimes used for community spaces, collectives, or businesses designed to support specific groups or causes.
When to Talk to a CPA or Business Advisor
You don’t need an accountant to get started, but it can be helpful to speak with a CPA or business advisor early, especially if you’re unsure about taxes, incorporation, or long-term financial planning. Even a short consultation can help you avoid costly mistakes later.
3. Setting Up Properly
Many new businesses run into trouble not because their idea is bad, but because basic financial and operational systems weren’t set up early.
Dedicated Business Bank Account
One of the simplest and most important steps is opening a separate bank account for your business. Keeping business and personal finances separate makes it much easier to track income, expenses, and taxes.
HST Registration
Some businesses must register for HST, while others only need to once their revenue passes a certain threshold. If you expect your business to grow quickly, it’s worth understanding these requirements early. To learn more about when HST registration is required, please consult the Canada Revenue Agency.
Accounting Basics
Even if your business is small, start tracking:
- Sales
- Expenses
- Receipts
This doesn’t require complex software at first. What matters is keeping clear records so you understand whether your business is actually profitable.
Understanding “Write-offs”
A common misconception is that any purchase can be a “write-off.” In reality, an expense must be directly related to operating your business to be deductible. Keeping organized records will make tax season much easier.
4. Funding Options
Many entrepreneurs assume they need a large amount of money to start a business. In reality, many businesses begin with very small budgets and grow over time.
Loans vs Grants
Two common sources of funding are loans and grants.
- Loans must be repaid but can provide larger amounts of capital.
- Grants do not need to be repaid but are usually competitive and tied to specific programs or sectors.
Arts Funding vs Traditional Business Financing
Creative entrepreneurs often access arts grants or cultural funding, which are designed to support artistic production rather than traditional business growth. These programs can be especially important for artists, performers, designers, and other cultural workers. Each grant has its own guidelines. For example, some grants are awarded only to individuals like individual artists rather than to an organization. Others might be awarded only to incorporation organizations (whether for profit or not-for-profit) or for non-profit organizations only.
Wage Subsidies
Government programs sometimes offer wage subsidies to help businesses hire employees, students, or interns. These programs can reduce the cost of expanding your team as your business grows. One of the most well-known wage subsidy programs in Canada is the Canada Summer Jobs wage subsidy program to create employment opportunities for youth aged 15-30.
These programs can cover a portion of wages for a set period of time, allowing businesses to expand their team while reducing financial risk. Wage subsidies are commonly used for:
- Hiring students or recent graduates
- Bringing on temporary project staff
- Expanding a team during periods of growth
These programs are especially helpful for businesses that want to test whether they can support a new role before committing to a full-time position.
5. Do You Need a Website?
Many new entrepreneurs believe they need a full website before they can start selling products or services. While having a website can be helpful, it’s not always necessary right away. What matters most is having a clear and credible online presence so people can find your business and understand what you offer.
Minimum Viable Online Presence
At the early stages of a business, your goal is simply to make it easy for people to discover you and contact you. A basic online presence might include:
- A Google Business profile so your business appears in search results (especially for businesses with physical locations)
- 1-3 active social media accounts
- An email address or phone number
This can be enough to support many businesses in the early stages. For example, consultants, artists, and freelancers often generate their first clients entirely through word of mouth and social media before investing in a full website.
Choosing the Right Platform
Different platforms are better suited to different types of businesses, and choosing the right one can save time and money.
- Etsy is popular for handmade goods, artwork, and small creative products. It provides a built-in marketplace, which means customers are already browsing the platform.
- Shopify is designed for businesses that want to run their own dedicated online store. It provides more control over branding and pricing but requires more setup and marketing.
- Instagram and other social media platforms can work well for visual brands, services, and creative work. Many businesses use social media as their primary marketing channel while directing customers to a simple checkout system or booking form.
Instead of trying to maintain accounts on every platform, many successful businesses focus on two or three platforms where their customers naturally spend time. This makes it easier to maintain consistent content and communication.
Over time, as the business grows, investing in a dedicated website can help improve credibility, search visibility, and customer trust.
6. Industry-Specific Supports
Entrepreneurs often assume they have to navigate the business ecosystem alone, but in reality, many industries have specialized organizations, networks, and programs designed to help businesses succeed.
In Newfoundland and Labrador, these supports can provide mentorship, training, networking opportunities, and funding programs tailored to specific sectors.
Technology and Startups
Entrepreneurs building technology products, such as apps, software platforms, or digital tools, often benefit from connecting with organizations like Genesis or TechNL. These organizations provide mentorship, accelerator programs, networking opportunities, and connections to investors.
For technology businesses, these programs can be especially valuable because they offer guidance on product development, scaling, and entering larger markets.
Even entrepreneurs who are only exploring a technology idea may benefit from speaking with these organizations early in the process.
Arts and Creative Industries
Creative entrepreneurs often rely on a mix of arts funding, community markets, and cultural programs to build sustainable businesses. ArtsNL and the Canada Council for the Arts are some of the largest arts funders for individual artists and arts organizations in Newfoundland.
Artists working in areas such as jewelry, illustration, graphic design, or handmade goods may sell their work through:
- Local markets and craft fairs
- Online marketplaces
- Galleries and retail partnerships
- Workshops or classes
Access to arts grants and community programming can make it easier for artists to experiment, develop new work, and connect with audiences.
Immigration and Newcomer Supports
For entrepreneurs who are new Canadians, starting a business can involve additional considerations related to immigration status and eligibility for certain programs.
Organizations such as the Association for New Canadians (ANC) provide support and guidance for newcomers navigating employment, entrepreneurship, and settlement in Newfoundland and Labrador.
Speaking with these organizations early can help ensure that starting a business aligns with immigration requirements and that entrepreneurs are aware of programs designed specifically for newcomers.
Need Support?
Across all industries, one of the most valuable things an entrepreneur can do is connect with the right network early. Mentors, community organizations, and professional associations can help answer questions, introduce new opportunities, and reduce the trial-and-error that many entrepreneurs experience when starting out.
Explore the QuERI, Quadrangle’s Entrepreneurship Resource Index, to learn about all the different supports at your fingertips. Consider connecting with the Entrepreneurship Training Program to discuss your business idea with our Entrepreneurship Navigator.