Each year, about 100,000 small businesses are created in Canada. But what does it actually take to start a business in Canada - not just on paper, but in practice?

To better understand what launching a startup in Canada truly involves, we interviewed entrepreneurs across various sectors. As experts in strategy and entrepreneurship, we combined their first-hand experiences with research findings to determine key factors that contribute to business success.

What emerged is a clearer picture of the realities of Canadian entrepreneurship that shows building a business is as much about managing relationships, risks and resilience as it is about having a novel idea.

Before launching a business, it's essential to identify your target customers. Successful ventures begin by solving a real problem for a clearly defined group. Conducting market research to ensure a strong product-market fit is a critical first step in this process.

One of the most common blind spots for new entrepreneurs, according to Ariz Bhimani, founder of apparel brand BRFZY, is assuming the problem they face is universal. "Without genuine data from potential customers, you're just guessing," he said in an email interview.

This is where customer discovery comes in. It involves understanding customers' situations, needs and pain points. Techniques such as user interviews and creating detailed customer personas can help founders better understand who their product is for.

This approach is crucial for both startups and established organizations looking to enter new markets.

Another vital part of the early-stage process is building a minimum viable product (MVP): a basic version of a product that includes only the core features needed to test the idea with users.

MVPs allow entrepreneurs to gather feedback and refine the product before investing significant time or money in full development.

Once a market need is identified, securing funding is often the next major challenge. This process typically begins with creating a compelling pitch - a presentation that outlines the product or service and financial projections to attract potential investors.

This pitch is crucial to a startup's success, Mohammad Faiyaz, founder and CEO of Wavermark, told us.

There are tools and resources available to help, such as the pitch deck developed by PayPal co-founder Peter Thiel and AI feedback tool AI Fornax.

But while funding is essential, managing those funds wisely is equally important. Chris Colasanti, vice president at Rocket Mortgage Canada, explained via email that one of the most common mistakes new entrepreneurs make is failing to control costs.

Many first-time founders become preoccupied with revenue growth while overlooking expenses. Colasanti argued that unless you have endless investor backing, your survival depends on lean operations. "Obsess about your costs," he advised.

Bhimani echoed this caution. "I would budget two to three times more time and money to get a task done, especially in the ideation stage," he wrote to us. Entrepreneurs should be prepared for unexpected costs.

Many startup founders are eager to scale their businesses quickly, but doing this prematurely can increase the risk of failure by 20 to 40 per cent.

"Growth is one of the most taxing activities a company can experience," Colasanti told us. "Fight the urge to grow. Hire when it hurts and let sales drive your growth."

To scale successfully, companies need a strong foundation. This means having a comprehensive business plan in place. A well-structured plan outlines a company's mission, market strategy, operations, finances and key milestones.

Beyond serving as a roadmap for internal decision-making, business plans also help communicate a company's vision and strategy to investors and other stakeholders.

The Business Development Bank of Canada offers guides to help entrepreneurs build effective business plans.

Hiring the right employees for the job is crucial for startup success. "You cannot overpay for talent," Colasanti told us. "The first 10 people you hire will make or break your business."

Hiring decisions should go hand-in-hand with intentionally building a workplace culture. Research shows that a positive workplace culture leads to higher employee satisfaction, retention and overall productivity.

"Your business will develop a culture whether you create it or not," he said. Many first-time founders let poor behaviours slide to avoid conflict, but this is risky.

Bhimani also emphasized the importance of hiring those who genuinely understand your company's mission. "Then I know they're invested and will put forth their best effort," he told us.

There are important legal considerations to keep in mind. Employers must comply with federal and provincial labour laws, and entrepreneurs should seek legal advice or consult government resources when building their teams.

While entrepreneurship is often seen as a solo pursuit, research and experience suggest otherwise. In reality, founders who are mentored by successful entrepreneurs are over three times more likely to be successful themselves.

Both Bhimani and Dhwani Shah, founder and CEO of Aadhya Navik Inc., highlighted the importance of mentors.

"Even if you just have an idea," Bhimani told us via email, "you should strive to talk about it as much as possible with people in the industry who have relevant experience."

Shah similarly attributed her growth to constant learning and expert guidance: "I have a long-term vision and actively seek advice while working on the product."

Resources like the Business Benefits Finder and programs like Futurpreneur Canada and Startup Canada can connect early-stage founders with financing and mentorship.

Mindset is also a differentiating factor that sets successful entrepreneurs apart. The entrepreneurial mindset is a way of thinking that involves seeing opportunities where others see obstacles, and maintaining a strong sense of initiative and resilience.

All the entrepreneurs we interviewed said intrinsic motivation was the key to longevity. "Starting a business makes you wear multiple hats, which can be intimidating but also gives you immense satisfaction," Shah told us. Research has also confirmed this to be true.

Read more: Entrepreneurs know that failure is sometimes necessary - here's what we can learn from them

Colasanti told us fear often leads founders to switch from experimentation to protection mode too early. "They stop taking big swings and start firing bullets instead of cannonballs," he said. That mindset shift can lead to complacency and stagnation.

Successful entrepreneurs are often those who can stay agile, embrace discomfort and persist even when the stakes are high.

There are a number of supports for entrepreneurs in Canada. National initiatives like Futurpreneur Canada and Startup Canada, and financial supports from Business Development Bank of Canada, are also available.

Most provinces and territories have web pages dedicated to resources for small businesses and entrepreneurs, including British Columbia, Alberta, Manitoba and Ontario.

In southern Ontario, WETech Alliance offers a model example of how regional innovation hubs can support founders. Their programs help connect entrepreneurs to expertise, capital and community.

Starting a business in Canada has never been more possible or more competitive. As the experts we spoke to remind us, success lies in execution. The journey is hard, but for those who are ready, it can also be deeply rewarding.