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Protect Your Livelihood and Your Investment
Your business represents your livelihood and a significant investment of time and money, so you need to make sure you protect it. Before you start operating your business, be sure to identify and safeguard against the key risks your business could face.
Want an overview of what you need to do to get your business up and running? Check out How to Start a Business in 12 Steps.
Protect Your Intellectual Property (IP)
When you’re starting a business, it’s important to know what you can legally protect, what you can’t protect and how to avoid infringing on someone else’s IP. Check out the three most common methods to protect your traditional intellectual property:
- A trademark protects your brand and logo. You can register any combination of letters, words, sounds or designs that are unique. Before you start operating, search the CIPO trademarks database to make sure your business name and/or logo isn’t already being used.
- A copyright protects your ideas and works such as stories, music, art, plays, written words or digital content. You can apply for a certificate from the CIPO as evidence once you’re finished with the work.
- If you’ve designed something new and unique—such as a product, machine or process—you can apply for a patent, which gives you exclusive rights to the idea. Make sure you keep the idea a secret, as unlike copyright, you only get protection after the patent has been filed. For more information go to the CIPO about patents.
Here’s how these protective measures compare:
Trademark
- Gives you exclusive rights to the work in Canada for 10 years and can be renewed
- Two types: ordinary mark (for words, designs and more) and certification mark (for goods or services that meet a defined standard)
Copyright
- Valid throughout your lifetime, plus 70 years after your death
- Automatic copyright is granted once your work is created, however official copyright registration is strongly suggested
Patent
- Valid for 20 years
- Protection is only given once a patent is filed
- Can be sold, licensed or used to attract investors
Other ways to protect your intellectual property include:
- Register your website domain name
- Apply for corporate name pre-approval, then incorporate with the Government of Canada
- Use confidentiality agreements
- Encrypt or password protect data and restrict access to any important documents
- Form a strong relationship with key suppliers and customers
- Keep employees entrusted with business secrets close—through long-term contracts or by making them a partner
To learn more about how IP works, check out this infographic: How Intellectual Property (IP) in Canada Works.
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Get Business Insurance
Just as you need personal insurance to help protect your car, home and the people you care about, you will need some business insurance to help protect you, your business and your employees. Here are several common types of coverage—be sure to talk to a licensed insurance professional to see what’s right for you.
- Liability insurance protects you from claims arising from legal actions brought against your business.
- Business overhead expense insurance can help your business meet its ongoing expenses if you or a co-owner can’t work because of a disability.
- Key person insurance helps your business recover if someone who is invaluable to your company passes away or becomes disabled and unable to work.
- Business loan insurance can pay off a portion of your business loan(s) if an insured person passes away.
- Commercial property insurance protects your business premises and equipment, and provides funds to keep it running in the event of theft, fire and more. If you have a home office, you can buy personal property insurance to cover business assets and activities.
- Travel insurance covers you for emergency hospitalization, medical costs and related services when you travel to other provinces or abroad.
Reduce the Likelihood of Fraud and Theft
Fraud and theft come in many shapes and sizes. The good news is preventing them is possible—and, in many cases, easy. Here are a few ways to do it:
- Be vigilant with hiring and training to prevent internal fraud. Take the time to do background checks and hire trust-worthy employees. Also, manage their financial limits appropriately and train them to follow procedures. It’s also wise to have an exit strategy in place for when/if an employee leaves your company.
- Recognize e-commerce red flags, such as multiple cards being used to pay for a single purchase, orders made up of big-ticket items or gift cards, and multiple transactions on a single card in a short period of time.
- Take special precautions when dealing with chargebacks. You can do this by resolving issues with cardholders directly if possible and helping to ensure goods arrive to your customer by the expected delivery date. Providing clear billing descriptions and helpful customer service may reduce disputes.
- Monitor all your payment methods—including traditional ones. Be sure to check your account balances daily, use electronic forms of payment and avoid using paper cheques, if possible.
- Stay up to date on the latest scams so that you can quickly recognize the signs.
- Never share anything about your employees, company or network of vendors and suppliers with anybody who isn’t verified to access that information.
For more tips, check out: The Art of Fraud Prevention.
Mitigate Cyber Security Risks
All you have to do is listen to the news to know how rampant cybercrime is today. And since most small businesses lack the money or resources to put proper security practices into place, they are often victims of cyber-attacks. There are three prominent cybercrimes to be aware of and several ways to protect against them:
What It Is |
How to Protect Against It |
|
|---|---|---|
Phishing |
A common online scam where an email is sent encouraging the recipient to give up personal, business, or financial information—often “informing” the recipient of some urgent situation that requires fast action. |
|
Malware |
Software that creeps onto your computer to corrupt files, mess up applications, spy on your activity or copy your data—all as a means to steal money or information. Malware could cause your computer to run slowly or crash more often. |
|
Ransomware |
A type of malware that copies everything on your computer and locks you out until a ransom is paid. It can often take weeks or longer to recover from this type of attack—and it may be impossible to run your business during that time. |
|
Phishing
What It Is
A common online scam where an email is sent encouraging the recipient to give up personal, business, or financial information—often “informing” the recipient of some urgent situation that requires fast action.
How to Protect Against It
- Be cautious about clicking links in emails
- Avoid providing confidential information or signing in IDs or passwords when responding to an unsolicited email or text
- When in doubt, call to verify the communication you received is legitimate
Malware
What It Is
A type of malware that copies everything on your computer and locks you out until a ransom is paid. It can often take weeks or longer to recover from this type of attack—and it may be impossible to run your business during that time.
How to Protect Against It
- Install up-to-date anti-virus software
- Remove old applications
- Avoid providing confidential information or signing in with IDs or passwords when responding to an unsolicited email or text
Ransomware
What It Is
A type of malware that copies everything on your computer and locks you out until a ransom is paid. It can often take weeks or longer to recover from this type of attack—and it may be impossible to run your business during that time.
How to Protect Against It
- Be vigilant about software and email practices
- Back up your data regularly, so that if you are a victim of a ransomware attack, you can get back to business sooner
More ways to protect against cyber-attacks:
- Educate employees to not log in to work from public spaces, click on potentially malicious pop-ups or provide confidential information in response to emails or texts.
- Remember you’re a potential target and stay vigilant.
- Know how to plan for and manage a cyber security crisis. Download and use this free Cyber Security Crisis Management Template to help your business prepare.
- Consider hiring a cyber security professional who can help you evaluate and assess your security risks and build a security program for your business.
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