January 23, 2013

How to build your own small business

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Owning a small business can be one of the most exciting and rewarding experiences of your professional career. But becoming your own boss is not for the faint of heart. Whether you are purchasing an existing business or starting one from scratch, the first few years are the most crucial, requiring solid planning, hard work and unwavering passion for what you do.

TD Canada Trust offers tips to entrepreneurs who are considering starting their own small business:

• Solid planning is non-negotiable – As the saying goes, ‘fail to plan, and you are planning to fail’. A strong business plan should clearly and concisely outline your long and short term goals, and how you’re going to get there. Make sure your plan includes a strategy for the marketing, operations and financing and that it’s updated at least annually. Your business plan is not only a good way to keep you focused on your goal, but it will also play a huge role when securing capital from potential investors.

• Check the pulse on cash flow – Cash flow is the lifeblood of all growing businesses, so keeping a close eye on your company’s financials is critical. A company with strong profits on the income statement, but which is tardy in collecting its receivables or does not manage its cash flow tightly, may go bankrupt if it does not have the cash to service its obligations.

• Ask for expert advice – Entrepreneurs sometimes have trouble asking for help, but the most successful small business owners surround themselves with experts to navigate through the challenges. The small business advisors at your bank can help you with financial solutions to ensure you have the right cash flow management system in place to take your business to the next level.

Additional advice is available online at www.tdcanadatrust.com/smallbusiness/resources.jsp

Courtesy of Newscanada