Don't let small business problems cost your sleep and hair.
Canada is big on small businesses.
The largest concentration of Canadian small businesses is in Ontario. It’s home to 415,801 small businesses, or 36 percent of the market.
Like big businesses, small businesses can also strive to implement the best management ideas as those utilized by big companies. The only difference is that you might see yourself on a more arduous path as a small business owner.
All About Small Business
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What is a small business?
A small business can be defined as any business with less than 100 employees and which normally has less annual income. An example of a small business might include
a hairdressing salon and a small bakery with few employees. On the other hand, a prominent business might consist of a bank with more than one branch or even big chain foods restaurants such as MacDonald.
Do I need a lot of resources before starting ?
An advantage for you is that you might not require many resources to start a small business. Many of these large corporations you see today worldwide began in garages, warehouses, and even in the backyard. For instance, Apple, one of the best, if not the best, brands in smartphone manufacturing, started in a small garage in Cupertino, California, and grew into becoming what it is today.
Why might people decide to open small businesses?
A high number of citizens living in Canada today are unemployed. With the spread of COVID-19, a lot of people have lost their sources of livelihood. Opening a small business serves as a way to put food on the table and pay bills. Also, people might decide to open up businesses to satisfy their curiosity. Other people open up businesses to fill the demand for a particular commodity lacking in the community.
Small Businesses contribute to the economy by:
- Bringing about growth and innovation in places where they are situated
- They employ people living in the area, thus boosting the economic growth of the town.
- Through outsourcing work from large corporations to small businesses, the government can collect tax to help stimulate the economy's growth.
- Small corporations bring about the invention of new products, services, and implementation of existing ideas.
Small Businesses Insurance
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What is insurance, and how does it work?
Insurance works to transfer the risks of financial losses from individuals or businesses to an insurance company. The insurance company will collect small amounts of money from all its clients, including your business, and utilize that money to pay for losses if anyone incurs them.
Why should I get business insurance?
Will insurance pay for window cracked?
If your property is destroyed, lost, or stolen and you have an insurance policy covering those risks, you will not have to go back into your pocket to pay for the losses. The insurance company will do that for you. Please note that you only can access the funds paid to the insurance if the insurance policy covers the claim you are making. You cannot claim for a flood incident if your insurance policy states floods are not covered.
Small Businesses Need What Insurance?
You've probably been wondering, "What kind of insurance do I need for my small business?" The type of insurance you need varies with the business you're in. You need the right insurance for your business to avoid paying for damages out of pocket. Some of the best insurance you can choose for your small company include:
General liability insurance
If you are a small business person, then you need general liability insurance. It is the first type of insurance you should have as a person starting a small business. It helps protect the company from injuries that might be caused to others due to your business operations. It will also cover property damages caused by you or people belonging to your business.
Business income coverage
Business income coverage will assist you in getting your lost income when you have to close down your business because of an accident. Accidents such as fire can cause you to shut down temporarily, so this coverage will pay your income for the days you closed shop.
Commercial property insurance
Commercial property insurance helps protect your business premises, including the furniture, tools, and equipment, from damage. So, when a deadly storm or fire damages your place of work, this insurance will come in handy.
Overall, there are many insurance policies you can choose from, and these are just a few of them. You might also want to consider BOP, also known as business property policy which works as a package protecting both, your business property as well as liabilities that you might incur while running your small business.
How do they choose the right insurance?
Choosing the right policy for your business is not an easy task. But do not be worried because we are here to help. These three steps will help you when you decide to buy insurance for your small business.
1. Assess the risks
First of all, before buying insurance, think about any accident and natural disasters that are common in your area that cause harm to your business. Additionally, think of any lawsuits that you might be exposed to and could also do you harm. If you have a small roofing company, for example, think about the dangers of this job.
2. Look for a licensed agent
Insurance agents will help you find the right insurance for your business. The services they provide you, you are not going to pay out of pocket, so relax. Once they sell you insurance, they earn a commission from the insurance company.
3. Shop around
Prices and benefits differ from one company to another. Look at different insurance companies before making a purchase decision. Compare rates, terms, and benefits from various agents.
Starting a business is a great idea. Many Of the big shops you see around, such as Nike, KFC, Papa John's, started as just small businesses and then grew into the big brands they are today. Your business, too, can grow, but without insurance, you might suffer greatly. You might end up losing your shop because of an unexpected incident that leaves you without any funds. Therefore, get insurance and help your business grow safely and healthily.