Starting an Alternative and Complementary Health Care Business
This guide examines possible steps to take and issues to consider when starting an alternative and complementary health care business in Canada. Prepared by Canada Business, this document describes licence, permit and registration requirements that apply to the alternative health care industry. The extent to which the information will apply to you will depend on the details of your project.
Because this document is only meant as a guide, Canada Business service centres will not accept responsibility for business decisions made based on the information provided.
For more information on individual topics identified herein, contact your local Canada Business service centre.
- Basics to Getting Started
- Industry Overview
- Licences, Permits and Regulations
- Managing Your Operation
- Associations
- Resources
- Additional Information
- Bibliography
BASICS TO GETTING STARTED
Before proceeding, reference should be made to the Business Start-up Info-Guide for your region for information on the steps involved in establishing a new business.
Alberta - Business Start-up (Alberta) Info-Guide
Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Canada, it is wise to do your research. You should also make sure you are suited for entrepreneurship, and understand that significant effort may be required. As such, you should thoroughly enjoy the field you are getting into, and you must believe in your product or service as it may consume much of your time, especially during the start-up phase. There are many issues to consider such as regulations, financing, taxation, management, advertising, and much more. Complete the Feasibility Checklist for Starting a Small Business to assess your level of readiness.
The following is additional information to consider.
INDUSTRY OVERVIEW
Alternative health care is often referred to as complementary and alternative health care. The terms "alternative" and "complementary" refer to using a same therapy differently. That is, "alternative" refers to using a particular therapy instead of conventional treatment; and "complementary" is used along with conventional medicine. Other terminology includes:
- alternative and integrative medicine
- alternative therapies
- complementary care
- complementary and alternative medicine
- alternative medicine
It is speculated that the demand for services within the alternative health care industry will continue to grow, fueled in part by Canada's aging population and the increase in chronic illness.
Findings from British Columbia's Fraser Institute study titled
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In 2006, more than one-half (54%) of Canadians reported using at least one alternative therapy in the year prior to the survey, which was a 4% increase over the rate of use in 1997.
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In the 12 months prior to the 2006 survey, the most commonly used complementary and alternative medicines and therapies were massage (19%), prayer (16%), chiropractic care (15%), relaxation techniques (14%), and herbal therapies (10%). Though the top 5 list was the same in 1997, the order was different.
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Canadians used alternative therapies an average of 8.6 times during the year previous to the 2006 survey, which was similar to their use in 1996 (8.7 times).
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Most people choosing to use alternative therapies in the 12 months preceding the survey did so to prevent future illness from occurring or to maintain health and vitality.
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Of those who used alternative medicine in the 12 months prior, 53% of respondents in 2006 (down slightly from 56% in 1997) had not discussed their use of alternative medicine with their doctor.
Health Canada's
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Eight in ten Canadians (81%) think it is important to respect the role that Natural Health Products (NHP) play in some cultures. A majority (81%) think the use of NHPs will increase over the next ten years, and seven in ten (72%) believe Canadians have the right to use any NHP they choose.
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Canadians are most likely to say that they completely trust the NHP information provided by their doctor (47%), pharmacists (43%), Health Canada (34%), and registered dieticians (30%).
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Family members or friends (28%) are identified as primary sources of information on NHPs followed by the Internet (19%), pharmacists (18%), and physicians (14%). Pharmacies (27%), Health Canada's Web site (26%), and Health Canada's publications (25%) are Canadians' most preferred (9 and 10 on a 0-10 scale) means of receiving information.
Types of Operation
There are many different kinds of alternative therapies, and several ways to operate these kinds of businesses.
Examples of types of operations:
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Acupuncture is an ancient Chinese art based on the theory that Qi energy flows along meridians in the body, and can be stimulated by inserting fine needles at specific points. Acupuncture is used to treat asthma, addiction, arthritis, depression, anxiety, blood pressure disorder and problems with the digestive system.
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Aromatherapy involves the use of essential oils (extracts or essences) from flowers, herbs, and trees to promote health and well-being.
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Ayurveda is an alternative medical system that has been practiced primarily in the Indian subcontinent for 5 000 years. Ayurveda includes diet and herbal remedies and emphasizes the use of body, mind, and spirit in disease prevention and treatment.
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Chiropractic is a system that focuses on the relationship between bodily structure (primarily that of the spine) and function, and how that relationship affects the preservation and restoration of health. Chiropractors use manipulative therapy as an integral treatment tool.
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Natural Health Products are defined as vitamins and minerals, herbal remedies, homeopathic medicines, traditional medicines such as traditional Chinese medicines, probiotics, and other products like amino acids and essential fatty acids. Natural health products are available for self care and self selection, and do not require a prescription to be sold. In Canada, natural health products, also referred to as complementary medicines or traditional remedies, are subject to the
Natural Health Products Regulations. -
Homeopathic medicine is a system based on the belief that "like cures like" meaning that small, highly diluted quantities of medicinal substances are given to cure symptoms, when the same substances given at higher or more concentrated doses would actually cause those symptoms.
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Massage or massotherapy is the manipulation of muscle and connective tissue to enhance function of those tissues and promote relaxation and well-being.
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Naturopathic medicine is an alternative medical system in which practitioners work with natural healing forces within the body, with a goal of helping the body heal from disease and attain better health. Practices may include dietary modifications, massage, exercise, acupuncture, minor surgery, and various other interventions.
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Reflexology is a type of deep foot or hand massage designed to relax the whole body through the reflex response. The thumbs are used extensively to break up crystalline deposits that form at the nerve endings, particularly on the bottom of the feet.
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Reiki is a Japanese word representing Universal Life Energy. Reiki is based on the belief that when spiritual energy is channeled through a reiki practitioner, the patient's spirit is healed, which in turn heals the physical body.
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Therapeutic Touch is derived from an ancient technique called "laying-on of hands". It is based on the premise that it is the healing force of the therapist that affects the patient's recovery; healing is promoted when the body's energies are in balance; and, by passing his or her hands over the patient, the healer can identify energy imbalances.
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Yoga has been shown to alleviate stress and, at the physical level, has been seen to be useful in the treatment of those who suffer conditions that affect or are affected by posture, such as backache and arthritis.
Some practitioners may specialize in one discipline while others may choose to train to offer multiple therapies.
Practitioners of alternative health care may run their business from home, from an office or spa-like environment, or take their business to the client at their home or office (for example, chair massages in the workplace). Another type of business, pending on the discipline and qualifications of the practitioner can include teaching techniques to others. For more information, see the following documents:
To complement their practice, some practitioners incorporate a retail aspect to their business and may, for example, sell natural health or cosmetic products. If you choose to sell some items retail, check the documents:
LICENCES, PERMITS AND REGULATIONS
All new businesses must comply with regulations and obtain the appropriate licences and permits. When creating a business, you must contact the municipality involved, along with the provincial/territorial and federal governments.
Each municipal government has the authority to issue its own business licences within its jurisdiction. Since there is no uniformity throughout the country regarding municipal licences for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses (including home-based businesses) must also meet the zoning by-laws that control property uses in their municipalities. Consult the government listings of your telephone directory or on the
Examples of licences, permits and regulations:
licences
Permits
- vendor permit
- building permit
Regulations
- fire safety standards or regulations
- retail sales tax
- zoning by-laws
- smoking regulations
- Food and Drugs Act
- Food and Drug Regulations (see the document Therapeutic Products)
- Medical Devices
- Natural Health Products Regulations
- Protection of Personal Information - Your Responsibilities
The federal government is responsible for the licensing and monitoring of drugs, food, medical devices and natural health products. Provinces and territories are responsible for the delivery of health care and the authority to license and regulate healthcare practitioners and other service providers.
The provinces and territories have passed legislation for many professions which delegates authority for the regulation of a particular profession from the province or territory to an organization comprised of members of the particular profession. These professional organizations are largely self-governing within the boundaries of their statutory authority and have been granted the privilege of self-governance in order to protect and promote the public interest.
BizPaL
BizPaL - Business Permits & Licences provides Canadian businesses with one-stop access to permit and licence information from all levels of government. This online service is offered by Industry Canada in partnership with provincial, territorial, and municipal governments. Please note that BizPaL is not available for all provinces and all cities.
Certification and training
Contact the appropriate associations for details regarding certification and training.
Insurance
Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, it could be a wise decision to ask other business owners in your area to recommend one.
Examples of insurance:
Basic insurance
- fire insurance (extended coverage on buildings and contents)
- liability insurance
- burglary protection (theft coverage)
- dishonesty insurance (covers thefts by employees)
Professional liability insurance
- the various associations may have information regarding group professional liability insurance
Marketing/Advertising
Word-of-mouth advertising and good public relations are often the best tools for promoting your business. Depending on your market and its size, consider handing out flyers, business cards, brochures; advertising in newspapers (especially for promotions), on the radio and TV; placing an ad in the business pages of the telephone book and on the Internet. Also bear in mind that a satisfied customer provides good advertising and that referrals are a valuable way of making potential customers aware of your products or services.
A Web site is also a good marketing tool. It should have details to describe your location (your street and e-mail addresses, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a Web site, you must remember to update it on a regular basis.
Participating in community events is another way of advertising your business. You may also hold community events that will promote your business.
No matter how you choose to market your business, it is wise to track how your clients found or heard of your establishment - this may help determine your future advertising strategies.
For more information regarding advertising and marketing, see the following documents:
- Signs and your Business
- Plan your Advertising Budget
- Advertising Do's and Don'ts
- Ways to Promote Your Product or Service
- Marketing Plan Outline
- E-Commerce - Exploring Your Options
- E-Business Info-Guide
The Online Small Business Workshop - The Marketing Basics section covers the basics from developing your customer profile to promoting your business.
The federal Competition Act governs misleading advertising and deceptive marketing practices for most businesses in Canada. The Act defines which marketing practices are illegal and the process of complaint investigation.
For more information, consult the Competition Act - Misleading Advertising and Deceptive Marketing Practices, or visit the Competition Bureau Web site.
Market Research
Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan.
The Guide to Market Research and Analysis can help you develop a marketing plan; your primary functions are to understand the needs and desires of your customer, select or develop a product or service that will meet customer needs, develop promotional material that will make the customer aware and ensure product or service delivery.
Accounting/Bookkeeping
Basic Bookkeeping is an essential activity. A good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.
Note: All staff working with cash should be trained to recognize
Selecting Professional Services
The use of professional services is essential to the success of a small business. Professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently.
Professional services often used by entrepreneurs may include:
- lawyer ( Legal Issues in Starting a Business)
- insurance broker
- accountant
- banker (for tips and pointers on dealing with your bank, see the document Dealing With Your Banker & Other Lenders)
Furnishings and Equipment
Before you open your business, you may need specialized equipment. The kind of service you are offering will determine the type of equipment you will require. For assistance in this area, you may get the advice of a sales representative or consult trade publications and manufacturers' Web sites. List that equipment and its cost to you. An important factor to consider when choosing equipment is the after-sales service and repair and their affordability.
Used equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment include similar businesses that are closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase.
Leasing equipment - Another alternative is to lease equipment to help keep start-up costs down.
Setting Up a Pay System
Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce workforce turnover.
Setting the Right Price
The price can influence what consumers will buy, which in turn affects the total revenue and the profit. In the end, the right price for the product/service is the price that the consumer is willing to pay for it. Hence, correct pricing decisions are a key to successful management.
Profit Watching
Making a profit is the most important -- some might say the only objective of a business. Profit measures success. It can be defined simply: revenues - expenses = profit. So, to increase profits, you must raise revenues, lower expenses, or both. To make improvements, you must know what's really going on financially at all times. See the document Profit Pricing for the Costing of a Service.
ASSOCIATIONS
Examples of associations include, but are not limited to:
Canadian Chiropractic Association: 416-585-7902 or 1-877-222-9303 Canadian Federation of Aromatherapists: 519-746-1594 Canadian Holistic Nurses Association: 519-371-1255 Canadian Massage Therapist Alliance: 604-873-4467 Canadian Chiropractic Association: 416-496-8633 or 1-800-551-4381 Canadian Order of Practitioners of Naturopathy and Naturotherapy: 514-939-1457 Canadian Reiki Association: 604-669-9049 or 1-800-835-7525 Chinese Medicine and Acupuncture Association of Canada: 519-642-1970 Homeopathic Medical Council of Canada: 416-788-4622 Iridologists' Association of Canada: 416-233-9837 National United Professional Association of Trained Homeopaths (NUPATH): 1-519-748-2224 Reflexology Association Canada: 204-477-4909 or 1-877-722-3338
RESOURCES
Additional resources which may help alternative health care business owners include, but are not limited to:
Publications
Statistics
- National Population Health Survey - Statistics Canada
ADDITIONAL INFORMATION
When seeking business information, feel free to visit the Web sites for the
For general business information, you may contact your
Telephone: Call 1-800-272-9675 and speak to a business information officer who will direct you to the best sources of information or refer you to programs and services relevant to your business situation. Some centres have optional recorded answers to frequently asked questions to speed up service. E-mail: You can also send your questions via e-mail from the Web site. In-Person: Canada Business offers an extensive collection of business-related publications, directories, leading-edge business products (e.g., videos, CD-ROMs) and access to external databases. Business clients can use these materials on their own or with the help of a business information officer. The Canada Business service centres have arrangements with existing business service organizations in communities across Canada to provide Canada Business information. Contact the Canada Business service centre in your region for the location nearest you.
BIBLIOGRAPHY
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Public Health Agency of Canada (PHAC)
* PDF format - to download publications in PDF format,
DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
