Month: February 2018

Running a Pest Control Business

Running a pest control business in Canada sounds like a great idea, the main reason being demand. Additional benefits include low marketing costs and start-up costs and a pest-free environment for customers.

Challenges

The main challenge that pest control businesses face is the fact that summer is the time when rodents, bugs, and other pests come out. Summer is a busy season but you will have less work in winter, spring, and autumn. Thus fluctuating cash flows and profits are the main problem due to the seasonal character of a pest control business.

Regulations, Licenses, and Permits

The main acts and regulations in Canada are the Pesticide Residue Compensation Act, Pest Control Products Act, and others. Depending on the province or territory and activity, businesses are required to obtain different licenses and permits such as pesticide permits, vendor license, operator license, etc.  In Ontario, for example, businesses that apply and sell pesticides need a license while those that use high-risk pesticides need a permit. There are different types of exterminator licenses as well, including water, land, and structural exterminator licenses. The license is valid for a period of five years. Business owners are asked to submit an application, along with the application fee, proof of pesticide certification, and employment information.

Develop a Business Plan

A business plan helps obtain external financing at competitive interest rates, especially if you have very good or stellar credit. It is a good idea to include a list of services such as advisory and consultancy services, building maintenance and lawn care, insect and rodent control and extermination, bird proofing, and termite control. Other services include pest and mosquito control and eradication and fumigating. Make sure you include separate sections on your business structure, mission statement, potential customers, and target market. Customers that use pest control services include corporations, camp grounds, farms, local communities, kids’ playgrounds, boarding houses, parks, commercial farmers, and households, among others.

Funding

Funding can come from different sources, including credit unions and banks, finance companies, peer to peer lenders, credit card companies, government-backed loans, and more (https://www.lifeoncredit.ca/refresh-financial-secured-credit-card/). Many business owners apply for government funding under the Canada Small Business Financing Program (https://www.lifeoncredit.ca/the-small-business-tax-reform-in-canada/). Loans can be used for eligible assets such as equipment (tools, instruments, machinery, etc.), leasehold improvements, immovable or real property, and registration fees up to 2 percent. Funding cannot be used to cover things like inventory, working capital, or franchise fees. A government loan can be used to cover website and software development, decontamination costs, and equipment improvement, including installation, modernization, renovation, and construction. In addition to CSBF, unions and banks offer mortgage and loan financing to start-ups and companies operating in Canada (https://www.lifeoncredit.ca/). Religious entities and enterprises, farms, and non-for-profits usually do not qualify. Many financial institutions require personal guarantee as a guarantee of on-time loan repayment. There are other ways to secure additional financing, including business lines of credit and credit cards. A business line of credit, for example, is a good choice to access and withdraw funds at any time. Money can be used for inventory and supplies, to take advantage of trade discounts, or anything else. Lastly, business credit cards go with larger limits compared to personal cards and benefits such as complimentary welcome bonuses, concierge, airmiles, travel and flight discounts, and a lot more.