May 14, 2009
During our recent national, 10-city Tour, Committed to Growing Small Business, each of our partners and sponsors provided attendees with some valuable tips and recommendations for how to grow their business . Today we’d like to share some of these recommendations with you.
Paolo Abate of FC Financial Group suggests that every entrepreneur take into consideration the following points when putting together a growth plan.
1. Firstly, consider yourself an entrepreneur. Your goal is to create, redefine, excel. You embrace risk and thrive on it. The unknown can be your advantage.
2. You need capital to grow, appreciate this. Finding it is not easy, but you can take steps now to help finance a start-up. Building net worth is vital.
3. Take full advantage of legitimate Canadian tax shelters. Money saved on tax can help finance your business and grow your net worth faster.
4. Home ownership and entrepreneurial finance are related. As you contemplate a new business or need more capital, consider excess equity in your home as a smart and cost effective way to finance your growth.
5. Seek independent financial advice outside of your bank. Consider the motivations of the people you consult; be aware of bias and captive selling arrangements.
6. Personal cash flow statements are important; do not neglect to prepare them alongside those for your business. What are your respective burn rates?
7. Your small business likely is not sustainable without you. Think about how long your business would continue to generate revenue in your absence. Mitigate this risk with an insurance plan.
8. Have an emergency reserve fund. Keep a minimum or at least have access to 3 months earnings at all times.
9. Safeguard your assets using investment and insurance vehicles that are creditor proof and have principal protection features.
10. Reduce risk in your business and personal life by executing relevant insurance strategy. Entrepreneurs face an asymmetrical amount of risk relative to employees. If you can use insurance to reduce risk, do so.
11. Government programs can be a big help. Make yourself familiar with them and ensure your financial advisor is as well. With the right advisor, qualifying for a small business loan is easier.
12. Meet and greet. Success and money come from people. How many people did you meet that could potentially help your business grow? This month? This year?
13. Not only listen to great advice, execute, execute, execute. Don’t get lost in the details, and take action. |
