Starting a business takes a lot of work, and you don't want to cut corners when it comes to planning your finances during that time. Create a thorough financial plan to ensure that your business thrives… and your bank account, too!

Money matters

Create a monthly budget during your start-up so you can…

  • Identify your sources of income
  • Better allocate income to expenses (rent, groceries, loan payments, car instalments, etc.)
  • Find expenses you can cut
  • Figure out how much of your income you could temporarily do without
  • See whether you'll have enough income to meet your basic financial needs

Set up an emergency fund

An emergency fund will provide you with money to cover unexpected personal expenses, including extended absences from work or healthcare

Prepare your transition

  • Let your employer know you're leaving
  • Take advantage of your dental and healthcare coverages before you lose them
  • Make any necessary changes to your family's finances
  • Update your estate planning to reflect your new situation

Tips from an expert

Talk to a representative or a financial planner about…

  • Taking stock of your insurance coverages and deciding which should be maintained or replaced (like your group insurance)
  • Taking out life insurance to make sure your loved ones are taken care of when you die
  • Buying other coverages to protect your business in case you get sick or become disabled
  • Creditor proofing your assets and making sure they're protected notably by designating a beneficiary in case of bankruptcy or lawsuits

Talk to a lawyer so you can…

  • Select the best legal form for your business (sole proprietorship, general partnership, limited company, incorporated company, cooperative)
  • Understand the clauses and the consequences of the contracts you'll need to sign (partnership agreements, purchase contracts for companies or franchises, lease agreements, etc.)
  • Have a buy-sell agreement drawn up to make it easier to resolve differences between partners or to settle matters in the event of a death, disability or bankruptcy

Talk to an accountant or a tax specialist about…

The tax implications of the legal form you choose for your business, your obligations and what your responsibilities are in this area.