Starting a successful business

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3 min.

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Do you believe in your project and know that it meets the needs of the market? To make your dream a success, you’ll need to think about a number of factors, including your financial situation. Here are a few basics to consider.

Adjust your insurance coverage

You are now your own boss. If you no longer have insurance, it is important to protect yourself and make sure you get adequate coverage in case of an accident or death.

Life insurance

Life insurance is an effective financial tool for protecting the future of your business. It also allows you to ensure the financial security of your loved ones should something happen.

If you don’t have this coverage, consider getting some in order to take into account your new needs as a self-employed worker.

If you do, consider increasing your coverage, as you’ll be taking on more financial responsibilities.

Disability insurance

If you become disabled as a result of an accident or an illness, disability insurance provides salary replacement income so that you can focus your energy on recovering without being worried about your finances.

Critical illness insurance

Self-employed workers sometimes have to cope with high levels of stress and long, irregular working hours that can affect their health.

Financial protection in the event of a serious illness could make a huge difference for your business, as it would provide the money needed to cover your financial obligations during your absence, whether you have partners or not.

Get personal property and legal liability coverage

Auto insurance

Do you use your vehicle for work? It’s important to tell your insurance company and adjust your coverage accordingly.

Home insurance

It’s important to tell your insurance company if you work from home so that you are adequately covered in the event of a loss. Check to see whether you have adequate personal property and legal liability coverage.

Business insurance

Get business insurance that is adapted to your situation and activity sector. This insurance covers your premises, equipment, merchandise and more. It also covers the business’s legal liability. Talk to your advisor to find the insurance coverage that meets your business’s needs.

Save to protect yourself

Economic conditions are always changing, so you may have to deal with some slower periods for your business. To prepare for these, you’ll need to build up an emergency fund and save for your future goals and retirement.

TFSA

A tax-free savings account will help you save money without affecting your taxable income. It can be used to help you achieve your ambitions and be ready for the unforeseeable.

RRSP

Build your retirement plan and have the retirement you want. A registered retirement savings plan will help you grow your money tax-free. It will also allow you to deduct all your contributions from your taxable income.

Think about your taxes

As a self-employed worker, you can include certain current expenses and property you purchase on your taxes. You can claim deductions for the use of your personal vehicle, portion of your home, office supplies and much more. Visit the relevant sections of the Canada Revenue Agency and Revenu Quebec websites for more information.

Change your beneficiaries

Do you have a spouse, children or business partners? You should adjust your beneficiary designations for all your individual and group insurance and savings products. This will help you ensure that, should something happen, benefits will be paid to the right people.

Go to Changing your beneficiary to see the steps to follow to change or modify your beneficiaries.

With the right coverage for your situation, you’ll be able to grow your business with complete peace of mind. At a time when good governance is increasingly valued, your customers and business partners will undoubtedly appreciate your responsible and professional business management.

Who knows? Your small business could soon be a lot bigger!