W is for work
- Steps to starting your own business
- Income tax and taxable sources of income
- Choose a business type
Product businesses
- Cookie or cake making
- Hand-made scarves, tuques and mittens
- Lemonade stand
- Hand-painted ceramics
- Jewellery making
- Etc.
Service businesses
- Babysitting
- Lawn mowing
- Delivering papers
- Seasonal maintenance (snow shovelling, window washing, raking, etc.)
- Selling empty bottles
- Etc.
- Draft a business plan
The business plan should include the associated startup costs (equipment, tools, ingredients, advertising, etc.) and estimated profits.
To determine the price for the product or service to be sold, you must first calculate the cost of its design or execution. Next, investigate the current market pricing before settling on a number that is high enough to generate profits but low enough to attract customers.
The business plan may be modified as the business grows.
- Run your business
- Establish a budget and track income and expenses (accounting)
- Complete your work on deadline
- Deliver the product or service on the agreed-upon date
- Perform tasks to the best of your ability
- Draw up contracts with your customers indicating when and how you will be paid
- Alert the customer if you are experiencing delays
- Manage your profits
Businesses generate income and expenses. Income that remains after expenses have been paid constitutes a profit.
Decide how the money will be used, e.g., to buy new equipment, to make an investment or donation, as savings, etc.
Income taxes are mandatory contributions to a federal or local government used to fund public services such as health care, transportation, public security, etc.
All wage earners must pay income tax, including young workers and students working part time.
In addition to wages, other income sources are taxable too:
- Tips
- Investment income
- Stock market gains
- Income from investments and grants resulting from educational assistance payments (EAPs)
- And more!