Planning vital for small businesses

With the world financial market in a tailspin, these can be unsettling times for small business owners.

In Pictou County alone, there are 2,400 small and medium-sized businesses that collectively generate more than 15,000 jobs. In recent years, it’s been the small business sector that has been the principal area of growth, creating the largest number of jobs. The current situation, though, has many of those small business owners concerned about what the future holds. Sound financial planning can help alleviate some of that strain, says David Wilton, the director of small business for Scotiabank.

“The key in most things is to have a plan,” said Wilton, who was in New Glasgow to speak with small business owners Monday as part of Scotiabank’s cross-country tour. “When you have a good plan it helps to minimize the issues, whether they’re the high cost of fuel or funding sources, and then identify strategies to overcome those challenges.”

It’s not to late to make a plan, either, he added. “At any point in a business’ lifetime, sit down and think through the issues,” Wilton said. “Business owners work in their business, but it may be that they’re not spending enough time working on the business. Sometimes it helps to step back a bit and do some planning. It’s a strategy I’d recommend any business take.”

But small business owners shouldn’t necessarily assume the current financial situation around the globe will have an impact on them. “Every business is different – some will feel the effect of the global economic environment more than others,” Wilton said. “Some are very downward-proof – people need things like fuel and food, for example. But some things that are more discretionary, and the business that makes sales that are discretionary are going to have an impact more.”

Even there, small businesses can look for opportunities that come out of adversity. During his cross-country tour, Wilton’s seen exactly that – like a company in Toronto who sells scooters to combat the price of fuel, or a company in Regina that sells solar-powered golf carts.

http://novascotiabusinessjournal.com/index.cfm?sid=182654&sc=107

Business Financial Services

Planning vital for small businesses