The Secret To Success: October 21, 2022
Hello All,
In a recent consultation with someone who is just starting their business, I was asked (after we had discussed all the relevant financial issues) if I had any general tips for running a successful business. It is certainly something I have contemplated over time in relation to both my own business and to the many small business owners that I have come into contact with over the years. The answer, unlike many financial questions, is not necessarily straightforward and is certainly preceded by “it depends”. There are however certain characteristics that tend to be shared by those who run successful businesses.
First, it is useful to define business success, which tends to be specific to each individual. It is based on what we value and evolves over time as our experiences begin to hone our vision. For some it might be creating a business that generates 7 figures a year, has multiple employees and operates over a large geographic region. For others it might simply be the financial independence that comes with being your own boss. Or it might be the ability to do something that you like (or even love) and actually make money from it, on your own terms. Regardless, I believe that it is a useful exercise to think about what success looks like to you (rather than narrow societal definitions that might focus on money or status).
That being said, in my experience, successful business owners demonstrate perseverance. There are numerous challenges when you are starting your business and getting it off the ground takes a willingness to continue your efforts in the face of rejection. Often, in the beginning, there is very little feedback while you try to build a following. It is a slow process and results may take months after which they start to accelerate. The key is to recognize that, as long as you continue to put in the work, you will almost certainly see results.
Another trait that successful entrepreneurs demonstrate is being alert and open to opportunities (which once you start noticing them are all around us). When you start a business, you reframe your interactions which allows you to see business potential in everyday activities. You might start connecting with people from who you are able to learn or may help you achieve your goals. By being curious and engaged, you are able to move your business forward.
Finally, business requires that you be flexible and adaptable. We might start out with a vision of the type of product or service we want to sell, but it is almost inevitable that this will change over time. We might more narrowly define our niche or see an opportunity in something different but related. This knowledge only comes with time and experience and the ability to “pivot” when necessary.
Of course there are a number of other qualities that contribute to success. Many of these come naturally if you are motivated. And while you should certainly have goals in mind, it is equally important that you derive enjoyment from the journey.
Blog Posts
I was recently asked why you would want to register your business. There are several reasons, which I have addressed in my post on registering a business in Quebec (I strongly advise anyone who is serious about running a business to do so. ) If you are not in Quebec, I’ve also included a post on how to register your business in other provinces.
How to Register a Small Business in Quebec
Budding entrepreneurs wanting to setting up a small business (or becoming self employed), either on a full time or part time basis, are often not sure where to start. The process of registering a
How to Register your Sole Proprietorship in Each Province
Once you have decided to start a new business and have concluded that the best structure for your business is a Sole Proprietorship, the next step is to determine if you need to register it. If you
Small Business Articles/Tips
CBC interview: I was on CBC radio a few days ago discussing personal finance. I address the endlessly exciting topics of inflation, what to do with your stock/mutual fund portfolios and answered questions relating to retirement and other scenarios. You can listen to the full interview here.
How high could interest rates go? Current central bank of Canada interest rates are at 3.25% (which is different from the prime rate which is at 5.45%). This article discusses what economists think the top will be based on current market conditions.
Tax Stuff:
The implications of dividends: An interesting implication of taking dividends for a small business owner. According to the tax court of Canada a dividend is simply a payment to a shareholder i.e. a return on investment and is not related to services provided to the corporation. Consequently this business owner was held responsible for the tax debts of the corporation.
SMB Audits Take About a Year: It is taking CRA 10% longer, on average, to complete an audit of small businesses. This equates to almost a year in actual days to complete an audit. While the exact criteria for selecting businesses that are to be audited is not revealed, they did indicate that it was related to “some element of their tax return which presents a high degree of risk of non-compliance”
QuickBooks Tip: Invoicing
A basic, but powerful feature in QBO is the ability to create invoices. You can set up estimates that once finalized can simply be converted into an invoice. Invoices can then be sent directly via email either as a PDF or via a link that customers can click on and download. Payment can be made via credit card (if you are set up to receive QBO payments). To save time, you can copy an invoice and just change the relevant details. You can also set up recurring invoices and set them to send automatically. There is also a time tracking feature which allows you to itemize the work that you have done and reflect it on invoices.
Books and Resources
Small Business Tax Facts(Sole Proprietorships/Registered Businesses/Self Employed Workers)
FastStart Your Corporation(Corporations)
QuickStart your QuickBooks(Sole Proprietorships and Corporations)
FastStart Your Business (Sole Proprietorships)
Small Business and Your Dividends (Corporations)
Use discount code “special” to save 20% on any (or all) book(s) when you purchase from the website.
Please note that all books on my website are in PDF format.
If you prefer a print version, all books are also available at Amazon . Note that print versions purchased on Amazon include a complimentary PDF - you just need to email me and include proof of purchase.
Free Resources
Business 2022 Tax Deadline Calendar
Starting A Corporation Checklist
Start Your Business Checklist
Dividend Declarations Checklist
Small Business Tax Return Checklist
QBO Set Up Checklist.
Small Business Calculators
Previous newsletters.
Consultations
I also provide consultation services where I can answer your specific questions relating to your small business and/or finances, provide clarity and give you guidance. Additional details can be found here and here.
Note that I no longer provide ongoing accounting or tax preparation services.
Reviews/Feedback
I would love to hear your comments on my current blog posts, topic ideas for new blogs, book feedback or anything else that you want to talk to me about. You can use my feedback form or email me directly at ronika@montrealfinancial.ca.
For anyone who has purchased my books through Amazon or directly and found them useful, I would be very grateful for a review on Amazon (to leave a review you only need to have an account with Amazon even if you did not purchase the book from there).
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Hope everyone is enjoying the colours of fall (which, no matter how many times I see them, are always breathtaking.)
Ronika