How to start an equipment dealership in Canada

Step 1: Choose your market and equipment categories

Start with the customers you intend to serve and the work they do. Interview potential customers, map nearby competitors and describe the gap your business aims to address. Decide whether your proposed business will focus on machines, attachments or parts, and explain that choice in your business plan. Keep the initial scope narrow enough to describe how you will sell and support it.

The federal business plan guide calls for a target market, a sales strategy, an operations plan and financial forecasts. Apply those prompts to your dealership rather than treating a brand name as a complete business model.

Prepare: a customer profile, proposed service area, category focus and a list of questions to validate with prospective customers.

Step 2: Plan capital, cash flow and premises

Build a budget around the activities you actually plan to offer. List premises, staffing, tools, insurance, parts handling and operating expenses; separate opening expenses from ongoing expenses. Model a slower-sales scenario and review your assumptions with an accountant. This guide sets no standard opening budget: work from documented estimates for your proposed operation.

Assess a site against your planned activities: sales office, equipment display, parts storage, repair space and vehicle access. Ask the municipality whether those uses are permitted before committing to the property. The federal location guide advises checking that an area is zoned for your type of business.

Prepare: a cash-flow forecast, a premises checklist and a record of the local checks still to complete.

Step 3: Discuss manufacturer or distributor authorization

Prepare a proposal showing your business, intended customers, location, product categories and sales and service capabilities. Ask the manufacturer or distributor to explain its application and review process, and request written confirmation of any dealer appointment before describing your business as authorized.

Keep business registration and brand authorization as separate checks. Use the federal getting-started guide to investigate registration and operating requirements. For a brand relationship, discuss which products and activities an appointment would cover and who your operational contacts would be.

Prepare: a business profile, capability summary and a record of the appointment details that still need confirmation.

Step 4: Plan after-sales service and parts capability

Write down how a customer will request help, how your team will identify the machine and required part, and how unresolved technical questions will reach the supplier. Review the manuals, training and parts information you need for the categories you propose to carry. Assign responsibility for customer updates, job records and parts requests.

As a planning exercise, walk through a sample service enquiry from initial contact to resolution. Identify which work you could handle with your proposed staff and tools, and which work would need an agreed service arrangement. The business plan guide includes staff skills, training plans and daily operational requirements; use those headings to document gaps before opening.

Prepare: a service workflow, a staff and tools checklist, and questions for the supplier about technical information and parts identification.

Step 5: Check insurance, registration and local compliance

Check the registrations, licences and permits relevant to your business structure, location and activities. The federal getting-started guide explains that a business may need permissions from federal, provincial and municipal governments, and points to the permit search service. Use it as a starting point, then confirm applicable requirements with the responsible authorities.

If you plan to employ staff or operate a workshop, review the relevant employment, workplace safety and environmental requirements. The federal business regulations guide provides starting points for those topics. A general startup checklist does not establish which permissions your particular site needs.

Discuss your proposed activities with an insurance agent or broker, including sales, storage, repairs and any transport you intend to undertake. Ask what coverage, limits and exclusions suit those activities. Ontario's business insurance guidance recommends speaking with an insurance agent or broker. Confirm the arrangements for your own operation rather than assuming a policy covers every activity.

Prepare: a registration and permit checklist, insurance questions and a record of who has confirmed each requirement.

Explore the TorqueMax dealer program

TorqueMax reviews business fit for its SDLG, ArcPath and ArcTrek product lines through its dealer application. Its published brand pages describe the following lines:

• SDLG in Canada: heavy construction machinery, including wheel loaders and excavators.
• ArcPath in Canada: construction equipment attachments.
• ArcTrek in Canada: aluminum truck toppers and canopy campers, a separate pickup-accessory line.

Use your category plan to identify which line fits your proposed business. Read how to become an equipment dealer in Canada for the TorqueMax application process and the information to prepare. Submit your company, location, contact details and brands of interest for review; an application does not establish dealer approval.

The steps above are general planning prompts, rather than additional TorqueMax application requirements. Confirm appointment details directly with the distributor.