A lot of small-business advice sounds the same: work hard, believe in yourself, keep receipts. While not wrong, getting ahead requires more than just abiding by the platitudes everyone else knows too.
Yahoo Finance Canada asked three people who advise entrepreneurs for a living what small-business owners really need to hear. Their answers cut past the clichés and into the habits, mindsets, and money moves that actually make a difference.
This October, Yahoo Canada presents “In Good Company” — a special series spotlighting Canadian small businesses in celebration of Small Business Month.
Satov is a Toronto-based business consultant who advises companies on strategy and performance.
See your business the way others do.
“People who are passionate about their product or service have a blind spot because they think their customers care more about it than they do. My job is to look people in the eye and tell them when they’re smoking their own [stuff].”
Bring objectivity into the room.
“Have objective people tell you the truth,” Satov says, adding that you need people who can see the picture clearly. “It’s easier for a CEO who isn’t the founder to be objective, because they’re not emotionally attached to the product.”
Let go of being the only right one.
“You’ll find that the people you work with who are junior to you don’t do it the way you do it. That doesn’t mean they don’t do it right. They just do it differently.”
A graphic pullquote for small business series. ·Yahoo Finance Canada/Satov Consultants
Temperament matters.
“Pessimists are always right, and optimists are always successful,” Satov says, paraphrasing the writer Thomas Friedman — a reminder that mindset can shape outcomes as much as strategy.
Be bold on price, tight on costs.
“Optimizing your pricing of any good or service that you sell is the clearest path to more money. And the best business people are always frugal, even when they’re successful.”
Battistelli is a senior wealth advisor with Assante Financial Management’s Unified Advisory Group.
Don’t climb the wrong ladder.
“You can spend your whole life climbing the ladder and realize it’s on the wrong wall — that becomes much more pivotal for a business owner.”
Create a predictable personal salary.
Business owners should treat themselves like an employee to create stability, Battistelli advises. This starts with “getting a really good handle on what their lifestyle actually costs” and setting a fixed, monthly income.
Pullquote graphic for small business series ·Christian Battistelli/Yahoo Finance Canada
Track the ‘Yayas.’
Battistelli warns against blurring the lines between business and personal spending. “We call it ‘yaya,’ because, you know, ‘Yeah, yeah, the business will pay for it.’” The danger, he says, is that “you need to plan for when that business is no longer there.”
Build a 12-month runway.
“Three to six months of expenses is certainly on the lower end for an entrepreneur. We generally start leaning towards twelve — being able to float the business with about 12 months’ worth of expenses and cash.”
Be realistic — and careful — with your retirement plan.
“We often hear entrepreneurs say ‘My business is my retirement plan.’ OK — but what’s your plan if that doesn’t happen?”
Abdulla is a tax partner at EY who advises Canadian business owners on structuring, compliance, and succession.
The easiest mistake: Paying late.
“When CRA interest went up to 10 per cent, people got hit with hundreds, thousands, tens of thousands of dollars of charges. It was really penalizing,” says Abdulla. “Just paying on time is one of the simplest ways to save money.”
Incorporate for the right reasons.
“When someone says ‘I should incorporate,’ my first response is ‘Why?’ If the why is because of income tax, then that’s easy… But the why could be ‘I’m operating in a business that is litigious… and I want to limit that [risk].'”
Find the deduction sweet spot.
To find the line between a smart deduction and an audit risk, Abdulla asks two questions. First: “Does this cost grow your business?” And second: “Would it be interpreted that this cost benefits you on a personal level?”
A graphic pullquote for the small business series ·EY/Yahoo Finance Canada
Don’t miss these often-overlooked deductions.
“I find those business development-type costs are often missed,” Abdulla says, referring to expenses like meals, entertainment, marketing and networking. “Not necessarily deliberately… but sometimes it’s by mistake. They didn’t keep their receipts.”
Drop the old tax playbook.
For years, for example, a popular move for profitable businesses was to “bonus down” — paying the owner a large salary to get the corporation’s taxable income down to the $500,000 small business deduction limit and avoid a much higher tax rate. But Abdulla warns that this once-common strategy is now often outdated. “Have you done the math on that recently? It doesn’t actually work anymore.”
Clean up before you sell.
“When you’re selling your business, the buyer doesn’t want your artwork collection or your car that happens to be in the corporation. Get that stuff out early.”
Talk taxes all year, not just in April.
“If you call me during the year, we can make small changes that really save you money. Once December 31 hits, your tax year is done, and there’s only so much you can do going backwards.”
Across all three conversations, the through-line is about clarity more than chasing growth. The experts underline the importance of knowing what your customers really think, what your lifestyle actually costs, and what your numbers truly mean before tax season starts. The owners who thrive, the experts say, aren’t just the ones who work the hardest, but the ones most honest about their own blind spots.
John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on X @jmacf.
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