Unit 4 Resource Needs for a Venture Part 2

Goals OVERALL O analyse the resources required to run their chosen venture SPECIFIC O identify and describe the applicable insurance and regulatory requirements that must be met in starting their proposed venture (e.g., liability insurance, principal's approval, permits, government registrations)

Government Regulations O Municipal Regulations  Business permits  Home based business  Signs  Parking  Zoning  Hours of operation  Municipal taxes

Government Regulations O Provincial Regulations  Provincial Sales Tax, PST, retail sales tax  Vendor’s permit, provincial sales tax exemption certificate  Labour Regulations  Hours of work  Minimum wage  Public holidays  Parental leave  Termination of employment  Occupational Health and Safety  Toxic substance  Refusal to work in dangerous conditions  Workplace Safety and Insurance Board  Licenses

Government Regulations O Federal Regulations  Taxes o The Goods and Services Tax o (GST) o Source deductions (CPP, EI, Income Tax)  Labelling and Packaging  Intellectual Property o Copyrights o Trademarks o Patents o Industrial design o Integrated circuit topographies

Government Regulations O Federal Regulations (cont’d)  Import/Export o Regulations o Permits o GST o Excise taxes  Duties and tariffs

IDEA PROTECTION

Your business venture may be a totally new product or service or may be something that already existed that you are going to change a little bit. INVENTION - the creation of something new INNOVATION - a change to something that already exists Once you've come up with an idea, an invention, or an innovation, there are a number of ways to protect it (intellectual property - original ideas and concepts that can be protected by law ) so potential competitors can't take advantage of it.

IDEA PROTECTION PATENTS A grant made by the government that gives the creator of an invention the sole right to make, use, and sell the invention for a set period of time Anyone can apply for a patent through the federal government

IDEA PROTECTION COPYRIGHTS - VIDEO A copyright protects literary works, musical works, artistic works, and software By law, all Canadians hold the copyright to any original work they have created unless they were hired or employed to create it (in that case, the employer who paid for its creation owns it) Under the Copyright Act, no one can publish, perform, translate, or adapt another person's work without permission

IDEA PROTECTION COPYRIGHTS If the copyright holder dies, the copyright is transferred to the holder's heirs for a period of 50 years and then expires unless the heirs take steps to renew it Items that might be copyrighted include books, maps, song lyrics, music, sculptures, paintings, photographs, films, tapes, computer programs, databases, performances, and sound recordings

IDEA PROTECTION TRADEMARKS Trademarks are words, symbols, or designs - or a combination of these - used to identify a product or service and distinguish it from its competitors Trademarks are valuable because they have come to represent the reputation of the producer as well as the products that bear them

IDEA PROTECTION TRADEMARKS Trademarks come in three basic categories: Ordinary Marks - are words or symbols that distinguish the goods or services of a specific company Certification Marks - identify goods or services that meet a defined standard Distinguished Guises - refer to the unique shape of a product or its package - such as the distinctive design of a Coke bottle

INSURANCE No matter where your business will operate, you will have to acquire insurance to cover financial losses due to fire, flooding, and theft You must also carry liability insurance. The amount of insurance required is usually based on the cost to replace items that have been stolen or damaged. Liability insurance is based on the amount that you may be sued for if a customer gets injured at your business or by you or an employee. This value usually starts at $1,000,000 and increases from there.

Case: The Big-Box Giant Scare You are the manager of a small hardware store. The owner has been in business in the community for over 40 years. He runs the store three days a week, and you manage it the other four. Historically, the business has been very successful. You have a devoted clientele and know most of your customers by name. Your staff is extremely knowledgeable about inventory, plumbing, painting, and repairs to the inside and outside of the home. Often customers will come to your store and ask for advice on home renovations. Last week, after a customer had purchased all of the products needed for replacing a sink, you spent over an hour on the telephone talking the customer through the replacement.

Case: The Big-Box Giant Scare Your store is located in the downtown area. The front of your store is large with display windows, and you have ample parking spaces. One problem, however, does exist. You are very worried about the future of the small hardware store. There is a big box store coming to town in a location on the outskirts of town. It will have over 50 times your retail floor space. In addition, the store will have much lower prices than you can manage. The big-box store is currently asking the city council for rezoning of the land to accommodate the new store.

Case: The Big-Box Giant Scare How will the small hardware store compete with the big-box store? Come up with a strategy that contains at least two points. Small Businesses are more capable of investing and supporting the local community than larger corporations. Agree or Disagree and explain why.