How to run a successful small
business:
TD business expert shares top 5 rules
TORONTO ON, October 16, 2009
– Thinking of starting a small business? Join
the club! Forty-one percent of the Canadian workforce is employed
by small businesses*, making this group an influential force on the
Canadian economy. Although the recession had a negative impact on
61% of small businesses, according to the 2009 TD Canada Trust
Small Business Survey, the extremely high level of optimism
experienced by small business owners (57%) suggests that 2010 might
be a good year to start a new company.
To help ensure success in your new, or
continuing, business venture, follow these top five strategies from
small business expert Christine Morris, Vice President, Sales and
Service, Business Banking at TD Canada Trust:
1. Watch your cash
flow
What keeps small business owners up at night? After the impact of
the recession (31%), cash flow tops the list of biggest concerns
(28%). Small business owners say they continually worry about
covering payroll and being able to pay suppliers.
“Cash flow management is the single
most important aspect of running a small business –
arguably more important than ensuring a good profit
margin,” says Morris. “With good cash flow,
anything is possible – hiring good talent, expansion,
access to credit and, yes, producing a profit. Without it,
it’s almost impossible to succeed.”
2. Find a good
advisor
“The expression ‘it’s lonely at the
top’ can be very true for small business owners. It can
be tough when you are the one running the company and there is no
one in the office you can turn to for counsel—or even an
occasional shoulder to cry on,” says Morris.
“Find an advisor you can trust – someone who
will listen to your unique issues and provide solid advice on how
to solve problems.”
As an example, small business owner Marc M.
Nicols, CEO, Equestrian Factory Outlet Inc., turned to his TD
Canada Trust branch in Alliston, Ontario when he was looking to
expand his equestrian apparel business. “My
branch’s small business advisor, Eric Tuninga, gave me
the ongoing counsel and the TD resources I needed to grow and
leverage my business over the last three years from one store to a
national franchise business with soon to be 16 locations across
Canada. I needed someone who could give me advice to help me save
time and money – that’s translated into
profitability for my business and my franchisees,” says
Nicols.
3. Develop your unique
selling proposition
According to Morris, understanding how your business stands apart
from the competition can be key to successful business planning,
effective marketing and sales. This begins with the development of
a unique selling proposition, or USP, that defines your
company’s key focus.
Nicols agrees that knowing your USP is
critical: “Our company is Canada’s largest
equestrian apparel retailer that deals with end of season European
goods and up to 70% off MSRP. That’s our
USP.”
The top three USPs cited by TD Canada Trust
Small Business Survey respondents are “to provide the
highest level of service in our industry” (33%), followed
by “to provide the best products/results in our
industry” (25%) and “to provide the best
expertise in our industry” (19%).
To help develop small businesses’
USPs, TD Canada Trust is hosting a free webinar on Boosting Your
Sales with a Unique Selling Proposition on October 22 at 12:00 EST.
Participants can register at
www.tdcanadatrust.com/smallbusiness.
4. Formula for success?
Stick to what you do best
“One of the top strategies for maximizing success is to
stick with what you do best and outsource the rest,” says
Morris. “This means that if your business makes riding
boots, focus your efforts on making the best boots possible and
hire experts to help you with other areas of the business you are
less experienced in, such as IT support, HR practices and investing
strategies.”
As an example, small business owner Marc M.
Nicols, CEO, Equestrian Factory Outlet Inc., turned to his TD
Canada Trust branch in Alliston, Ontario when he was looking to
expand his equestrian apparel business. “My
branch’s small business advisor, Eric Tuninga, gave me
the ongoing counsel and the TD resources I needed to grow and
leverage my business over the last three years from one store to a
national franchise business with soon to be 16 locations across
Canada. I needed someone who could give me advice to help me save
time and money – that’s translated into
profitability for my business and my franchisees,” says
Nicols.
5. Run your business as
if you are selling it tomorrow
The TD Canada Trust Small Business Survey showed that the majority
of small business owners feel they should start thinking about
transitioning their business two years in advance (62%) with only
16% planning more than five years out. Less than one-quarter (23%)
of businesses currently have a succession plan in place, down from
27% in 2008.
“Although transitioning your
business—for example, for sale or to a family
member—might be many years away, it is sound business
practice to operate your business every day as if you are preparing
to sell,” advises Morris. “This means always
following generally accepted accounting principles, staying on
schedule for supplier payments, minimizing debt and reducing costs
wherever possible.”
About the TD Canada
Trust Small Business Survey
The TD Canada Trust Small Business Survey polled small business
owners from across the country to understand the impact of the
recession on small businesses. The survey was conducted by Angus
Reid Strategies from September 8 to 14, 2009 with English and
French speaking small business owners (defined as business owners
with fewer than 20 employees) across Canada using the Angus Reid
Forum. The sample size included 1002 men and women.
About TD Bank Financial
Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Financial Group. TD Bank Financial Group is the
sixth largest bank in North America by branches and serves
approximately 17 million customers in four key businesses operating
in a number of locations in key financial centres around the globe:
Canadian Personal and Commercial Banking, including TD Canada Trust
and TD Insurance; Wealth Management, including TD Waterhouse and an
investment in TD Ameritrade; U.S. Personal and Commercial Banking
through TD Bank, America's Most Convenient Bank; and Wholesale
Banking, including TD Securities. TD Bank Financial Group also
ranks among the world's leading online financial services firms,
with more than 5.5 million online customers. TD Bank Financial
Group had CDN$545 billion in assets on July 31, 2009. The
Toronto-Dominion Bank trades under the symbol "TD"
on the Toronto and New York Stock Exchanges.
###
*Statistics Canada, Survey of Labour and
Income Dynamics, 2005
For further information,
contact:
Carolyn Abbass / Anne Locke
Paradigm Public Relations
416-203-2223
cabbass@paradigmpr.ca /
kmccullough@paradigmpr.ca
Erin Baldwin
TD Bank Financial Group
416-308-4061
erin.baldwin@td.com
|
