Westworld Alberta
Issue link: http://westworldmagazine.ama.ab.ca/i/40418
sole proprietorship today and if you decide to incorporate later, you can do that," Unger says. Confused yet? Unger suggests consulting The Business Link, a not-for-profi t organiza- tion supported by the federal and provincial governments, for advice on which model may be best for your company. Insure Your Bottom Line Taking a startup to opening day is a complex process. You have to decide on a location, secure financing and hone your business plan to woo potential investors. With all of that big-picture thinking, don't neglect the small-but-vital elements – in particular, insurance. Before you start moving boxes into your storefront or purchasing supplies for your startup, you should have a plan in place to protect it. And because there is much greater variety in insurance plans for businesses than for homes, it may take more time than you think. Diane Lennie, administration manager with AMA, says many insurers offer pack- ages for different types of enterprises – retail, for example. But, depending on your busi- ness, a customized insurance plan may be the better way to go. If your business will be based in your home, you can't rely on your home insur- ance to protect company assets. "Most home insurance policies exclude property related to a business," Lennie explains. If you have stock, samples or equipment used for business, your home insurance won't cover those items. "That includes tools if you're a contractor, computers – anything that you would use in order to carry out your work, as well as anything you sell," Len- nie adds. If you're worried about insurance costs eating away at future profits from your home-based business, don't be. With all of that big-picture thinking, don't neglect small-but vital elements such as insurance. "In some cases an insurer can put an endorsement on a home policy to extend coverage to include busi- ness activities. That includes liability," Len- nie says. So if you were teaching piano lessons in your home and a student tripped and fell, the endorse- ment (sometimes called a "fl oater") would cover that. Bring on the Benefi ts In the 1996 movie Jerry Maguire, the lead character convinces a colleague to quit her job and work for him at his new venture. In a fl ush of initial enthusiasm, she agrees and walks off the job. But it doesn't take long for reality to set in and she asks, "This new company . . . will there be a medical plan?" It's a worthwhile lesson for entrepre- neurs: no matter how passionate both you and your employees may be for the job, enthusiasm can quickly wane if a few key details are not in place. An extended medi- cal and dental plan offers employees a sense of stability that might otherwise be lacking 52 WESTWORLD >> SEPTEMBER 2011 in a startup. It's also a recruitment tool. In addition, as Yves Beauchesne, manager of AMA's Life and Living Benefits Program, points out, "If it's your own business, you have no personal coverage, and you should be thinking about what you can do for yourself and your family." That's particularly important if you, the owner and likely key employee, should have to leave the business because of ill- ness, injury or another matter. If you're for- tunate enough to have a job while you're planning your new business, talk to an insurance advisor about your disability and life insurance options before you hand in your pink slip. If your new enterprise only has a few employees, AMA offers individual benefi t plans. While these plans are managed as a group and paid for by the company, they offer a comforting advantage over tradi- tional group benefi t plans: "The costs asso- ciated with any claims are shared by all the policy owners, not just your business," Beauchesne says. "This means there won't be a signifi cant premium increase on the annual renewal date. Stable employee ben- efit premiums mean fewer uncertain expenses to worry about when starting a business." Whether you decide to go with a group plan or a series of individual plans, employee benefits can be deducted as a business expense, so be sure to discuss this option with your accountant. iStock, Getty Images