By DAVID JANZENStaff Writer

In Ontario, 80 per cent of new businesses fail in the first year.

This alarming statistic is one reason why Helen McCreadie, office manager of the Business Success and Loan Centre (BSL) in Fort Erie, spoke to a second-year journalism class at Niagara College on March 9.She offered the students a crash course in starting a small business and highlighted pitfalls that new business owners may encounter. McCreadie also outlined the three types of business structures existing in Ontario, including sole proprietorship, partnership and the corporation.The BSL, formerly the Business Development Centre of Greater Fort Erie, is a non-profit organization that provides the community with access to government-funded employment programs, training seminars, business loans and a business resource centre.Established in 1985 with the help of government funding, it now functions autonomously from government dollars.McCreadie jumped into the entrepreneurial services provided at BSL with an explanation of how a student might structure their self-employed business.“Sole proprietorship has a lot of advantages,” says McCreadie.“The record keeping is simple and so is the registration process.”However, she warns that if there are assets such as a house or car the owner could lose, business insurance is a must because everything, including tax documentation, is tied to the owner.Registering a personal business requires the applicant to perform an $8 name search at an Ontario Connect terminal, and then submit a $60 registration fee when an untaken name has been chosen.The name a five-year term and McCreadie says it’s important to keep track of the timeline so somebody else doesn’t potentially take it.Terminals to apply in person are in St. Catharines at the Enterprise Centre, the Niagara North and South Land Registry Office and in Niagara Falls at the MacBain Centre.After a business name has been registered, another option for structuring is to enter a partnership.A partnership “is like a marriage except it’s all about the money.There’s no love,” says McCreadie with a laugh.An individual may possess strong technical skills in a certain field, but may have no finances or a lack of marketing panache; this person would benefit from entering a partnership with somebody who could bring more resources to the table, says McCreadie.The final structure, the corporation, is a separate legal identity from the owner and offers tax advantages once a business grows to a certain size. Sole proprietors are in an advantageous tax situation until their profits reach $30,000.While a corporation offers increased credibility with bankers to raise capital, with a $1,000 to $2,000 start-up fee, “it won’t likely be an option for you as students straight out of school,” says McCreadie.And how do the 20 per cent of businesses that survive the first year thrive?“Keep your business name related to what you plan on doing; you want to make sure it’s relevant,” says McCreadie. Keeping track of business expenses is another important factor for business survival, she adds.“Keep a good set of books at all times. Getting an audit isn’t fun – track all expenses in the first year and be smart with your purchases. You need to be savvy.” The BSL offers free business seminars to all clients and will “help you every step of the way,” says McCreadie. The BSL is open weekdays from 8:30 a.m. to 4:30 p.m. in Fort Erie, at 45 Jarvis St., and may be contacted by phone at 905-871-7331, or email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Resource information is available at its website www.bslft.com.