Section 1: Starting a Small Business

A young couple, Nancy and Steve, wanted to establish their own guest ranch in the foothills of Alberta. This business venture was to be known as the Twin Peaks Guest Ranch. However, before they could begin operating, they had to learn how to start a business. They knew that there were certain legal requirements to fulfill, but they were not quite sure what these were. In most municipalities , government agencies are able to provide assistance to individuals who are interested in business ownership. Consulting with government officials is an excellent starting point; however, with such a major undertaking and where legal issues are concerned, it is definitely advisable to also seek the advice of a lawyer.

Lawyers play a valuable role in the initial phase of starting a business. They are highly trained to deal with a wide range of personal and business legal matters, especially given the many decisions entrepreneurs must make that have legal implications. Of first importance is to decide on the type of ownership that is most appropriate for the kind of business to be established. Each business type has certain advantages and drawbacks. Lawyers have the expertise to guide their clients with respect to these types of decisions. This section will provide an overview of major start-up considerations in relation to starting a small business.

Lesson 1: Intellectual Property

If you were to invent or create a new product or design, you would want to retain ownership over it, and so benefit from the time and energy you invested in its development. The Canadian government supports new ideas, designs and other creative endeavours. Whatever you originally invent, write, design or draw can be characterized as this type of property. Intellectual property, being the product of mental activity, is an intangible asset. This means it has no physical presence. An essential feature that extends to all types of intellectual property is that of originality.

There are specific rules and procedures that protect intellectual property and these are regulated through a government agency called the Canadian Intellectual Property Office. Applications concerning new ideas are filed with the Office, and when approved, owners receive legal protection over their creative work. This is in the form of a title, much like the title a person receives to indicate ownership over a piece of land. Records concerning intellectual property are open to public scrutiny to allow for the exchange of information. This openness is beneficial as it encourages further development and increases competition, which is fundamental to the growth of a country's economy.