Where to Put Your Money — Business or Savings?
Crack open almost any business book and you’ll likely find plenty of advice on how to make the most of business opportunities and increase your company’s revenue. One topic that gets less coverage, though, is what to do with profit once you’ve earned it. Do you leave it in the company? Do you put it into an RRSP? It can be difficult to prioritize long-term saving over short-term growth opportunities, and ideally, you’ll want to ensure your financial strategy incorporates a balance of investment options.
Taking family money
You may find it easy to raise money from family members because, well, they love you.
What investors want from your business
Your attractive face, polished patter, crisp wardrobe and firm handshake may get you a meeting with an investor, but that’s about it.
Accepting money from investors
Your growing business may require capital. That may take the form of money blended from several sources, including credit, savings, profits and investors.
Investment strategies for acquisitions
An advantage that mature businesses will typically have is that longevity has provided them with a degree of stability and a performance history. At the same time growth can slow as market capacity is reached. This can make acquisition an important aspect of a growth strategy.
Investment strategies for growing businesses
For many new and growing enterprises, cash is king. Businesses at an early stage of development may need funds to make capital purchases, to support what may be an unstable cash flow, or to keep a new enterprise afloat long enough to take off or gain traction in the marketplace. Because of this, many start-ups or new enterprises don’t consider developing an investment strategy.
Using the Canada Small Business Financing Program
Securing financing can be a challenge for small businesses, but help is available. The Canada Small Business Financing Program (CSBFP) seeks to increase loan availability, streamline administration and extend financing that would otherwise be unavailable to small-and medium-size enterprises.
How to see what's in your credit history
Your credit history plays a big role in obtaining business financing. It’s the record of how you’ve handled borrowing and repaying debt, and is used to determine your credit score, which potential creditors check when deciding whether to lend you money. So as a small business owner, it’s important for you to know what’s in your credit history.
Does your personal credit history matter?
If you’re going into business for the first time, you may be wondering how a bank decides to give you a loan.
Ask an advisor
This month’s question is answered by Keith Davidson, Account Manager, Small Business in Campbell River, B.C.
Is it safe to use my home equity to grow my business?
Financing your business
Financing your small business:
Finding the funds to take your enterprise to the next level
Savvy borrowing tips for your business
Whether you need financing to invest in new technology or boost your marketing efforts, there are ways to borrow that can help keep your costs low.
Smart borrowing and getting ahead
Whether you need financing to order next season’s products, invest in new technology, or boost your marketing efforts, there are ways to borrow that can keep your costs low. Here’s how to make the most of your borrowing options.
Why Business Owners Need an RSP
A registered Retirement Savings Plan (RSP) provides many benefits. For entrepreneurs who may have much of their wealth tied up in their businesses, building an RSP is especially important. Your savings compound tax-free and you get a tax deduction for your contribution. Here’s how to give your RSP a boost.
Capital Planning Worksheet
Planning and optimizing the structure of capital within your small business requires a systematic evaluation of your current funding structure, future capital needs, and an understanding of what sources of capital may be available to you.
Financing: the engine that supports business growth
Each month, The Pulse offers up market research insights gained by polling small business customers like you.
Our inaugural issue of The Pulse found that entrepreneurs were primarily focused on business growth, and that 50% of those surveyed had established specific sales targets.* Indeed, growth issues (of revenues, profits, customers, markets) were a main concern of Scotiabank small business customers. This article looks at the challenges business owners face when funding this growth.
Financing your service business
Accessing capital to start or grow a business can be challenging for all entrepreneurs, particularly those with service-based businesses, which includes the majority of women entrepreneurs. Your biggest asset is likely your intellectual capital, rather than bricks and mortar.
If you struggle to raise funds, you are not alone. Most women business owners tend to self-finance, which limits their growth potential. So, how can you find that elusive pot of money to fuel your business development? You can actually look both inside and outside to finance your service firm.
Financing Your Growing Practice
Like all businesses, professional practices succeed through hard work, planning and investment. Expanding services, opening new locations, updating technology, buying another practice or simply redecorating your office, can all build revenue and increase your success–and they all require cash to make them happen. This is where financing can help.
There are three main sources of financing: loans, investors and leases. The best choice for you depends on how you'll use the money, and your willingness and ability to take on additional debt or business partners.
Managing Borrowing Costs
Whether you are a one-person startup or a more established operation, there will probably come a time when your business will need to borrow. This is usually a good sign, as it means your business is growing, or you are expecting it to. But like all entrepreneurs, you’ll want to keep your borrowing costs low. These strategies can help.