A Guide: Steps to Starting a Business in Alberta

Letitia Yu
Letitia Yu

Starting a business in Alberta can be an exciting journey, but there are several steps you'll need to follow to ensure everything runs smoothly by making a business plan. Whether you're launching a small startup company or a growing enterprise, this guide will help you navigate each step with ease and includes case studies of successful businesses in Alberta that have mastered their business models. There are also common challenges and mistakes that new entrepreneurs should be aware of, which we will discuss in detail.

Step 1: Research & Make a Business Plan

Before anything else, make sure you have a clear business idea, understand your market in Alberta, and have a solid plan in place.

  • Market Research: Identify your target audience, understand their needs, and look at your competitors. This will help you carve out a niche for your business.
  • Business Plan: A good business plan includes your objectives, strategies, target customers, financial projections, and how you’ll make money. This will be your roadmap and will help secure funding if needed.
  • Legal Structure: Decide how to legally set up your business:some text
    • Sole Proprietorship: You are the sole owner and responsible for all business liabilities.
    • Partnership: Shared ownership with one or more partners.
    • Corporation: A separate legal entity, offering more protection but with more paperwork and potential tax advantages.

Step 2: Choose Your Business Name & Structure

Once you have a plan on how to start a business, it’s time to choose a business name and determine the legal structure.

  • Business Name: Make sure your chosen name is unique. You can check this through the Alberta Corporate Registry to ensure the name is available.
  • Register a Trade Name (if needed): If you operate under a name other than your legal name, you'll need to register a trade name.
  • Choose a Legal Structure: Decide between a sole proprietorship, partnership, or corporation based on how much personal liability and legal separation you want from your business.

What to Expect: Choosing and registering your business name and structure is a relatively quick process that can take a few days to a week.

Step 3: Register Your Business

After choosing your business name and structure, it’s time to officially register your business.

What to Expect: Registration is straightforward and can typically be done within a few days. Expect to pay around $50 to $500 depending on your business type.

Step 4: Get Required Permits & Licenses

When starting a business depending on what your business does, you may need specific permits or licenses to operate legally.

  • Municipal Business License: Most businesses in Alberta cities require a local business license. For example, in Edmonton or Calgary, you can apply online through their respective city websites.
  • Industry-Specific Permits: Different industries (like food services or construction) may need specific provincial or municipal permits. Check the requirements for your type of business.
  • Home-Based Business: If you’re running your business from home, you may need a home-based business license or to check zoning requirements.

What to Expect: This process can take 1-2 weeks. Costs and requirements vary depending on your business type and location, so it’s important to check with local and provincial authorities.

Step 5: Set Up Your Business Finances in Alberta

Keeping your business finances separate from your personal finances is key to staying organized and compliant with tax laws.

  • Open a Business Bank Account: Open a separate account for your business finances. Major Alberta banks like ATB, RBC, or TD offer critical business banking services.
  • Accounting Software: Use tools like QuickBooks, FreshBooks, or Xero to manage your accounting, track expenses, and file taxes.
  • Payroll Registration: If you plan to hire employees, you’ll need to register for a payroll account with the CRA.

What to Expect: Setting up your financial systems can be done in a day or two, but it’s important to spend time organizing these systems properly to avoid headaches down the road.

Step 6: Secure Funding (if needed)

Many starting businesses need funding to get started or to grow. Fortunately, Alberta offers several funding options.

  • Government Grants & Programs: Look into grants from Alberta Innovates or the federal government. There are grants for specific industries, innovation, and green businesses.
  • Small Business Loans: Banks like ATB and BDC offer loans specifically designed for small businesses.
  • Personal Savings: Many entrepreneurs self-fund their business to get it off the ground.
  • Family & Friends: people close to you can lend you money more cheaply than banks

What to Expect: Securing funding can take time, especially if you’re applying for business loans or grants. Plan for a few weeks to several months, depending on your funding needs. A key tip is to kickstart this process before the other steps. As long as you have a business plan, you can apply to several funding sources.

Learn more about Business Grants and Loans for Small Businesses in Canada

Step 7: Set Up Your Workspace

Choosing the right workspace depends on the type of business you’re running. You have several options, from working at home to renting a space, depending on your needs.

1. Home Office:

  • Best for: Freelancers, consultants, and small e-commerce businesses.
  • What to Expect: Make sure your home-based business complies with municipal zoning regulations and license requirements.

2. Retail or Commercial Space:

  • Best for: Businesses that need a physical location for customers, like a store or restaurant.
  • What to Expect: Research the area, compare lease costs, and factor in utility bills. Locations in busy areas often come at a higher price.

3. Flexible Space and Co-Warehousing with TradeSpace:

  • Best for: Businesses that need warehousing, office space, or fulfillment services without long-term commitments. Many types of business from e-commerce to manufacturers to professional services choose this option that beats traditional warehousing.
  • How TradeSpace Helps:
    • Flexible Warehousing: TradeSpace offers pay-as-you-go warehousing, allowing you to store and manage your inventory as needed. No need for long-term leases.
    • Office Space: TradeSpace provides shared and private offices, ideal for businesses needing temporary space to grow.
    • Fulfillment Services: TradeSpace offers fulfillment services, handling storage, packaging, and shipping. This is perfect if you run an e-commerce business and need someone to manage orders while focusing on growth.
    • Networking: Being part of a co-warehousing community allows you to meet other business owners and exchange ideas or collaborate.

What to Expect: Depending on the workspace you choose, the process can take a few weeks (especially for finding commercial space). With flexible solutions like TradeSpace, you can get set up quickly, saving time and money.


[Learn more about choosing the space here]

4. Industrial or Warehouse Space:

  • Best for: E-commerce businesses, manufacturers, or distributors that need a large space for storage and order processing space with no preference on term longevity. 
  • What to Expect: Ensure the space has room for your inventory and operations. Don’t forget to budget for insurance, utilities, and maintenance.

Step 8: Market Your Business in Alberta

Getting the word out about your starting business is key to attracting customers. Here are the basics to start:

  • Build a Website: Platforms like Shopify, Squarespace, or WordPress make it easy to create a professional website to showcase your products or services.
  • Social Media Marketing: Set up profiles on Instagram, Facebook, and LinkedIn. Engage with your target audience through posts, ads, and promotions.
  • Branding: Invest in professional branding—this includes designing a logo, business cards, and other marketing materials that align with your business identity.

What to Expect: Marketing is an ongoing effort. You can start simple with social media and basic ads, then expand into more complex strategies like SEO and content marketing as your business grows.

[learn more about shopify marketing strategies here]

Step 9: Hire Staff (if needed)

If your business needs employees, start the hiring process early to ensure you find the right team members.

  • Post Job Listings: Use platforms like Indeed, LinkedIn, or local Alberta job boards to find talent.
  • Employment Contracts: Ensure your employment contracts meet Alberta’s labor laws.
  • Payroll System: Set up a payroll system to manage employee wages and benefits.

What to Expect: Hiring can take several weeks or longer depending on the role and the availability of candidates.

Step 10: Launch Your Business!

Once everything is in place, you’re ready to launch!

  • Grand Opening Event: Plan a launch event, either online or in-person, to create buzz around your business.
  • Track Performance: Monitor your sales, customer feedback, and cash flow. Use this data to refine your strategy and grow your business.

What to Expect: Opening your business is just the start. From here, the focus will shift to maintaining operations, increasing sales, and scaling.

Common Challenges When Starting a Business in Alberta

Starting a business comes with its own set of challenges. Here are some of the most common obstacles you might face:

  1. Access to Funding: Many entrepreneurs find it difficult to secure enough funding, especially without a strong credit history or savings.
  2. Regulatory and Licensing Issues: Navigating different permits, licenses, and regulations can be time-consuming and complicated.
  3. Finding the Right Workspace: Choosing between home office, retail, or warehouse space is tricky, and leases for commercial space can be expensive.
  4. Cash Flow Management: Managing your cash flow effectively in the early stages can be challenging, especially when expenses outpace revenue.
  5. Building a Customer Base: Attracting your first customers and establishing a loyal client base takes time and effort.
  6. Hiring the Right People: Finding and retaining talent that fits your business culture can be difficult as you scale.

Mistakes to Avoid When Starting a Business

  1. Not Making a Business Plan: Without a plan, you risk unfocused growth, poor financial management and slimmer chances of qualifying for funding.
  2. Underestimating Costs: Not accounting for all expenses can lead to cash flow problems.
  3. Choosing the Wrong Legal Structure: Opting for a structure that doesn’t fit your business can cause legal and tax issues.
  4. Neglecting Market Research: Skipping market research can lead to offering products or services that don’t match customer demand.
  5. Not Registering or Protecting Your Business Name: Failing to register or protect your name can lead to legal trouble.
  6. Trying to Do Everything Yourself: Burnout can result from not delegating tasks.
  7. Ignoring Legal and Tax Obligations: Overlooking compliance and tax duties can lead to fines and penalties.

Alberta Success Stories

Endy Mattress – Direct-to-Consumer (D2C) E-commerce Success

Endy Mattress

Endy Mattress built its business on a D2C e-commerce model, eliminating the middleman to keep costs low and offering high-quality mattresses online. Their customer-first approach, with a 100-night trial and free returns, led to strong growth in Alberta. By optimizing fulfillment and delivery, Endy Mattress established a successful business model that resonates with modern consumers.

Key Lesson: Focusing on customer experience and efficient fulfillment can drive growth in competitive markets.

Fratello Coffee Roasters – Wholesale & E-Commerce Success

Fratello Coffee Roasters

Fratello Coffee Roasters, based in Calgary, combined wholesale distribution with a strong e-commerce presence. Their commitment to ethically sourced coffee and adaptability, especially during the pandemic when they shifted more sales online, enabled them to grow in Alberta’s coffee market.

Key Lesson: A dual business model that blends wholesale and e-commerce can help businesses reach broader audiences and weather market changes.

Final Thoughts

Starting a business in Alberta requires careful planning and execution, but by avoiding common mistakes and learning from successful business models and key insights provided in this guide, you can increase your chances of success. Whether you're setting up a small home office or opting for flexible workspace solutions like TradeSpace, each step builds a strong foundation for your business. By staying flexible, researching thoroughly, and making informed decisions, you'll be well-prepared to tackle the journey of starting and growing your business in Alberta.

Letitia Yu
Letitia Yu
Marketing Coordinator
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