Start Your Own Business

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Start Your Own Business by Mind Map: Start Your Own Business

1. Class of Businesses

1.1. Sole Proprietor

1.1.1. Is a business that legally has no separate existence from its owner.

1.1.1.1. Advantages

1.1.1.1.1. Simple taxation

1.1.1.1.2. Easy, quick, and affordable

1.1.1.1.3. You are your own boss

1.1.1.1.4. You have direct control over the decision making

1.1.1.1.5. Some tax advantages

1.1.1.2. Disadvantages

1.1.1.2.1. You are responsible for all the debt

1.1.1.2.2. Unlimited liability

1.1.1.2.3. If you are very profitable, it could put you in a higher tax bracket

1.1.1.2.4. Can be difficult to raise capital on your own

1.2. Partnership

1.2.1. A non-incorporated business that is created between two or more people. Their financial resources are combined and put into the business. The profits of the business are shared according to any legal agreement.

1.2.1.1. Advantages

1.2.1.1.1. Fairly easy and inexpensive to form

1.2.1.1.2. Start-up costs are shared equally between partners

1.2.1.1.3. Equal share in the management, profits and assets

1.2.1.1.4. Tax advantages

1.2.1.2. Disadvantages

1.2.1.2.1. no legal difference between owners and business

1.2.1.2.2. Unlimited liability

1.2.1.2.3. Can be difficult to find a suitable partner

1.2.1.2.4. Possible conflict between partners

1.2.1.2.5. One owner will be held financially responsible for business decisions made by their partner(s)

1.3. Incorporation

1.3.1. It is the act of forming a legal corporation, or the state of incorporating.

1.3.1.1. Advantages

1.3.1.1.1. Limited liability

1.3.1.1.2. Transferable ownership of business

1.3.1.1.3. Legal entities are separate

1.3.1.1.4. Everlasting existence

1.3.1.1.5. Capital raising is easy

1.3.1.1.6. Tax advantages to lower taxes for an incorporated business

1.3.1.2. Disadvantages

1.3.1.2.1. Regulated closely in a corporation

1.3.1.2.2. Extra expensive to set up an incorporation

1.3.1.2.3. Conflict between investors and executives

1.3.1.2.4. Report requirements and documents with the government

1.3.1.2.5. Requirements to improve democracy of executives

1.3.1.2.6. Tax returns, legal fees, and filing fees

1.4. Co-operative

1.4.1. It is a business owned and run jointly by its members, who share the profits or benefits

1.4.1.1. Types

1.4.1.1.1. Service Provider Cooperatives

1.4.1.1.2. Retail Cooperatives

1.4.1.1.3. Credit Unions

1.4.1.2. Advantages

1.4.1.2.1. Bulk Discounts - Access to supplies and services at competing prices

1.4.1.2.2. Tax Breaks - the revenue shared with the members is considered an expense so it’s not taxed as profit

1.4.1.2.3. A cooperative is owned and run by the members

1.4.1.2.4. Each member gets a vote

1.4.1.3. Disadvantages

1.4.1.3.1. Cooperatives can break apart when there are conflicts among the group members

1.4.1.3.2. Everyone has a role, but it can get hard when people aren’t doing their work

1.4.1.3.3. Lengthy processes for making decisions

2. Support entities

2.1. New Media Manitoba & On Screen Manitoba

2.1.1. New Media Manitoba

2.1.1.1. Help digital media companies to grow their business, and provide invaluable opportunities for someone who is starting a new business.

2.1.2. On Screen Manitoba

2.1.2.1. It is a great information source for business in the industry, provides promotional and networking support and industry representation, and grants up to $10.000 to provide technical training.

2.2. Westman Community Futures

2.2.1. Is a non profit organization that helps communities, small business and entrepreneurs grow.

2.3. The Brandon Chamber of Commerce

2.3.1. Non-profit organization that represents Brandon businesses. They help local business with promotion, networking, and cost reduction programs.

2.4. Manitoba Entrepreneurship, Training, and Trade

2.4.1. A resource for those interested in starting up a business. It can help with:

2.4.1.1. Start-up

2.4.1.2. Growth and Expansion

2.4.1.3. Marketing

2.4.1.4. Business Succession

2.4.1.5. Access to Capital

2.4.1.6. Financial Management

2.4.1.7. Sales

2.4.1.8. Human Resource Management

2.4.1.9. Business Networking

3. Where to get the money?

3.1. Crowdsourcing and crowdfunding

3.1.1. Crowdsourcing

3.1.1.1. Hold a contest to get something in particular done.

3.1.2. Crowdfunding

3.1.2.1. The process of seeking money from the public.

3.1.3. Microtasks

3.1.3.1. Break up work into smaller tasks to outsource them to many other people.

3.1.4. Macrotasks

3.1.4.1. Requires a specific skillset to complete more specialized tasks.

3.2. Grants and start up loans

3.2.1. Loans

3.2.1.1. Business Start Program

3.2.1.1.1. Loan guarantee program with and educational component. It's a 5-year-term loan up to $30.000.

3.2.1.2. Young Entrepreneurs Program

3.2.1.2.1. Provides a contribution of up to $4.000 based on a 50% of start up costs.

3.2.1.3. Business Contribution Fund / Business Equity Contribution Fund

3.2.1.3.1. Provides non-repayable contributions to eligible Aboriginal businesses in Manitoba. It offers a contribution of 30% of eligible costs (maximum value $99.999)

3.2.1.4. Canada Small Business Financing Program

3.2.1.4.1. Provides access to a loan up to $1 million for the establishment, expansion, and/or improvement of a small business.

3.2.2. Grants

3.2.2.1. Westman Community Futures

3.2.2.1.1. Once an application is approved, they'll provide support to bring constant revenue to the business for 6 months. It does not require paying back.

4. Administrative considerations

4.1. Tracking Revenue and Taxes

4.1.1. Every business owner must keep track of their expenses and revenue for various reasons:

4.1.1.1. Understand what you are spending your money on

4.1.1.2. Deductions on your taxes

4.1.1.3. Forecast future cash flows

4.2. Manitoba Interactive Digital Media Tax Credit

4.2.1. A refundable corporate income tax. Companies in Manitoba can qualify to claim 35% to 40% tax credit on certain project costs.

4.3. Basic end-year procedures

4.3.1. Are designed to make sure that financial information used for budgeting is accurate and on time.

4.3.2. Audits

4.3.2.1. Are official inspections of an individual's or organization's financial accounts, typically conducted by an independent body.

4.3.2.2. Helps management to make the right decisions far budget allocation and meeting their financial responsibilities.

4.4. Revenue Canada taxation compliance

4.4.1. Taxation compliance makes sure that there are not any irregularities regarding taxes and that businesses are in compliance according to the CRA.