• Français
• Home
• Contact Us
• Help
• Search
• canada.gc.ca

• My Region
• My Industry

Developing your ideas

If you decide to start a new business, you will need to spend some time developing your business idea. One of the greatest advantages of being an entrepreneur is being able to work on something that interests you and that you are passionate about. Unfortunately, passion does not always translate into profits.

Research, research, research! The more information you can gather about the potential demand for your product or service, about your competitors, about the needs and wants of your prospective customers, the more successful you are likely to be.

Before starting a business, you need to evaluate your idea and determine what your chances are of making a profit from that idea. This document lists some things that you should consider and provides links to additional information to help you assess your idea.

Is your idea truly original?

You will need to research your idea to see if it is truly original or whether someone else has a similar product or service. Capturing a niche market, i.e. something no one else is doing, may be more profitable than competing with a similar product or service. A business expert or mentor can help you to evaluate or enhance your original business idea.

• Conducting market research
  
  http://www.canadabusiness.ca/eng/88/1194/
  Learn more about market research, how it can improve your business decisions, and how to conduct a market research campaign.

Will people be willing to pay for your product or service? ↑ top of page

Great ideas can only translate into a successful business if people are willing to pay for the product or service.

• First, you need to identify who the target market is for your product. Are you planning to sell to young people or seniors? Is your product primarily for women, men or both? Are you going to sell to individuals, other businesses or to the government? What income level would people need to have to be able to afford your product or service?
• Once you know who you are going to sell to, you should consider doing some market research to find out if your target market would be interested in buying your product or service and how much they would be willing to pay for it.
• If your product or service is something people would be interested in, but not willing to pay for, you can consider alternate business models. Some businesses, in particular in the service industries, offer their service for free or at a low price, but are able to make money through other avenues, such as advertising.

Who is your customer?

Before you begin selling something, you need to know who you are selling to. If you haven't determined who your target market is, you are likely to try to be all things to all people and end up with a product nobody likes or a service that doesn't meet anyone's needs.

When developing a general profile of your customers, you might want to define them by their demographic characteristics, such as:

• Age, usually given in a range (20-35 years)
• Gender
• Marital status
• Location of household
• Family size and description
• Income, especially disposable income (money available to spend)
• Education level, usually to last level completed
• Occupation
• Interests, purchasing profile (what are consumers known to want?)
• Cultural, ethnic, racial background

For example, a clothing manufacturer may consider a number of possible target markets — toddlers, athletes, grandparents, teenagers and tourists. A general profile of each of these possible markets will reveal which ones are more realistic, pose less risk and are more likely to show a profit. A test market survey of the most likely target groups, or those who buy for them, such as parents for babies and toddlers, can help you separate real target markets from unlikely possibilities.

Once you have defined your target customers, you must learn about their needs and preferences.

• What challenges do they have that could be solved with your product or service?
• What are their needs and expectations regarding this product or service?
• What types of things do they desire?
• What do they spend their money on?
• Where do they shop?
• How do they make spending decisions?

Those are just a few of the many things you might want to learn about your prospective customers.

To develop a profile of your customers and understand their needs, you will have to do some market research.

• Conducting market research
  
  http://www.canadabusiness.ca/eng/88/1194/
  Learn more about market research, how it can improve your business decisions, and how to conduct a market research campaign.

Will your product or service be able to compete with those of existing companies? ↑ top of page

Once you find out who your customers are, you will need to look at who else is selling similar products and where they are selling them. Will you be competing with a product that has already been marketed? If your idea is a consumer product, check stores and catalogues or visit trade shows to find out what other products are available and what companies market them. You need to determine why customers will buy from you and not from your competitor. Is your product superior or is your price lower than other businesses? The best way to do this is to conduct market research using existing data or by doing your own survey.

How will you distribute your product or service? ↑ top of page

To distribute your product or service, you can either start your own company or you can try to convince an existing company to buy your product or idea from you. It may be easier to start your own company than to try to convince another company to distribute your product or service. Many potential buyers are more willing to deal with a company as a supplier than they are to take on a product or invention from an independent person.

How will you promote your product or service? ↑ top of page

An idea or invention is not very useful without customers to buy it! Have you considered how potential customers will discover your product? Some ways to market your product are:

• Having a website and being active in social media
• Participating in and attending trade shows, and by getting known through your trade association
• Placing advertisements in newspapers, on the radio, on television and on the Internet
• Distributing brochures

To learn more about effective marketing and promotion techniques, see:

• Promoting and advertising your business
  
  http://www.canadabusiness.ca/eng/89/899/
  Learn how to use advertising and other promotional techniques effectively.

Do you need intellectual property protection for your idea or invention? ↑ top of page

Your idea, invention or product may need to be protected from being copied by others. Find out if the tangible result of your intellectual activity is eligible for intellectual property protection and how to get it.

• Copyright and Intellectual Property
  
  http://www.canadabusiness.ca/eng/91/
  Learn about intellectual property, including patents, trade-marks, copyright, industrial design and integrated circuit topographies, and how they can protect your business.

Are there any government restrictions or obligations that could limit your idea? ↑ top of page

Before you move ahead with your business idea, you may want to check to see if there are any regulations that may prohibit or limit the sale of your proposed product or service or the operation of your business.

• Regulations, Licences and Permits
  
  http://www.canadabusiness.ca/eng/126/
  Learn about regulations, permits and licences that apply to your business.

What resources do you require to get your business off the ground? ↑ top of page

Developing a solid business plan is critical to the success of your business. A business plan will help you determine how much money you need to start your business. Also, a lender or investor will want to review it to determine your eligibility for financing. Your plan should clearly outline how you plan to make money and include an estimate of your projected sales for the first year. Base your estimates on the size of your market, your competition, your price, marketing plan and trends in the industry. Also include in your plan your expected expenses for things such as supplies, rental space, salaries, insurance, etc.

• Business Planning
  
  http://www.canadabusiness.ca/eng/86/
  Find out how to write a business plan and access templates and sample business plans.

Where can you go for help to evaluate and to clarify your idea? ↑ top of page

While you are still considering your idea, you may wish to get some help along the way.

Contact Canada Business

For more information, you can call, visit or e-mail the Canada Business Service Centres and regional partner offices. Our business information officers are prepared to provide assistance with your business questions and can direct you to relevant information in our extensive collection of business-related publications, directories and electronic databases.

• Contact Canada Business
  
  http://www.canadabusiness.ca/eng/page/contact/
  The Canada Business Network has centres across the country that offer guidance, information and resources to help make your journey in business a successful one.

Business advisors

You may also wish to get help from professional advisors such as lawyers, accountants, and business consultants. Consult our directories of Canadian companies to find ones located near you.

• Accredited Professionals
  
  http://www.ic.gc.ca/eic/site/ccc_bt-rec_ec.nsf/eng/h_00006.html
  Do you need professional help for your business? Access this national, online database of accountants, legal professionals, valuators and auditors.
• Business Consultants
  
  http://www.ic.gc.ca/eic/site/ccc_bt-rec_ec.nsf/eng/h_00007.html
  Find business consultants, development organizations and specialists in the areas of exporting, financial services, human resources, marketing, and more.