SOPHIE BOYER, PRESIDENT AND OWNER OF AUDVIK

As she headed towards studying business administration, Sophie Boyer already knew she wanted to become an entrepreneur. The former cross-country skier had even already chosen her industry: sportswear. Barely two months after graduating from the Université de Sherbrooke, an opportunity presented itself to her. “My uncle, who has a design studio, knew the founders of Audvik. One day, he came in with hockey pockets from which he took out the coats and said to me: Sophie, this will be your project. The company was for sale. I immediately said yes!” Two days later, the young woman, then 24, began building a first collection of the revival of Audvik with her mother, a sportswear designer for over 30 years. More fitted cuts, more current colours and the use of the same lightweight, waterproof and high-performance materials. "The business transfer went well because the former owners and I had the same fundamental values for entirely local manufacturing and for the quality of clothing guaranteed for life." What Sophie Boyer is most passionate about: passing on her passion for winter and promoting its joys.

SURVIVING A BUSINESS STARTUP

Solutions from the School of Entrepreneurs of Quebec

Starting a business is a real marathon that monopolizes time, mind, and…finances. Managing to pay yourself a salary during the first years of startup is a challenge. Here are some solutions to survive your business startup.

Part-time entrepreneur

Some entrepreneurs, like Sophie Boyer d'Audvik, prefer to start their business alongside their job. Part-time entrepreneurship thus guarantees financial stability, of course, but you have to be persistent and invested to complete your project, because the time you devote to it is less.

Depending on the nature of the business, the flexibility of the employer, and the motivation of the entrepreneur, it is entirely possible to operate in this way. However, beware of exhaustion!

For other entrepreneurs, the best approach is to throw themselves body and soul into their project. The pressure of having to succeed and generate capital can indeed act as powerful stimulators for the entrepreneur. The objective remains the same: to reach the break-even point. It is the cruising speed that differs.

Pay yourself a salary

The remuneration paid to the entrepreneur depends first of all on the legal form of the project. Are you self-employed? Your income, whether registered or not, is automatically considered as “business income” and is taxed on your personal tax return. Is your business incorporated? You have the choice between paying yourself a salary or receiving dividends from the business.

Salary or dividends?

Salary is a tax-deductible expense. Thanks to it, you can benefit from various social safety nets (RRQ, RQAP, CNESST, etc.), but above all, contribute to RRSPs.

Dividend is the action of taking money out of the company. It is not an expense, because it comes after taxation. So, if your company does not make a profit, which is quite common in the first months of startup, you will not be able to get a dividend.

If you decide to pay yourself a salary even though you are not breaking even, you will have to borrow and live on credit. Think about it!

On the other hand, by receiving dividends, you should (theoretically) have a little more left at the end of the year since there are no deductions at source in the same way as on salaries.

Explore other sources

Have you considered other financing options, such as crowdfunding or a loan? The École des entrepreneurs du Québec can introduce you to possible financing options for start-up entrepreneurs. With a good business plan in hand (our expertise is to help you write yours), you will be able to meet with investors and explore the options.