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One-third of Canadian small business owners planning growth
or expansion: RBC poll
TORONTO, February 26, 2010— Small business
owners are focusing on growth in 2010, with one-in-three (34
per cent) planning to expand their business over the next
six months and 26 per cent indicating that they are at the
start-up stage, according to a new RBC Small Business Poll.
Only 14 per cent of respondents said that they will require
access to credit in the next six months to finance and grow
their businesses.
"We are pleased to see that small businesses are confident
in their ability to finance growth in the next six months
as this sector plays an important role in the Canadian economy,"
said Mike Michell, national director, Small Business, RBC.
"For the business owners that are considering credit
or are unsure of their options to support business growth,
we are here to help them achieve their goals. Our lending
to small businesses actually increased last year and we will
continue to support business development in 2010."
RBC's credit solutions are designed to meet the unique needs
of small businesses and help owners build a foundation for
success and take advantage of growth opportunities, adds Michell.
Here are a few things for small business owners to consider
when looking to obtain credit to support their business:
- Starting a business? Determine how much money you need.
Opening your own business means creating a variety
of realistic cash flow projections, taking as many factors
into account as possible. That way, you're better prepared
and can react quickly if things don't turn out as expected.
For example, when calculating your business start up costs,
be sure to account for day-to-day expenses and cash needs
during the first three to six months before sales and revenues
build.
- Consider what types of credit financing you need.
There are a number of financing options available that address
short and long term business needs. Understanding which
option best fits your need is an important starting point
before applying for credit. For example, operating lines
of credit will help cover short-term expenses like supplies,
payroll and rent. Business credit cards can help cover and
track short-term expenses like office supplies, business
travel and utility payments. Term loans can help buy hard
assets necessary to operate the business, such as buildings,
vehicles and equipment.
- Create or fine tune your business plan. Your business
plan represents how you see your business evolving. It should
detail your initial requirements and long-term goals. If
you plan on securing higher levels of credit, or have complex
financing needs, you may be asked to bring your business
plan to your appointment. No matter what stage your company
is in, a business plan should be an integral part of your
management approach.
- Keep your personal credit in good standing. Depending
on the type and amount of business credit you require, your
ability to get credit can be based on your personal credit
score. Having a solid personal credit rating will improve
your chances of obtaining the credit you require.
In an effort to help Canadian small business owners (from
start-up to growth to business succession) succeed, RBC recently
launched a new online advice centre. The site provides free,
no-obligation professional advice and answers to common questions
business owners have. It covers many facets of running a business,
and includes interactive tools, calculators, videos, articles
and tips. Visit www.rbcadvicecentre.com
for more information.
These are some of the findings of RBC's Small Business poll
conducted by Ipsos Reid between February 2 - 8, 2010. The
survey tracks Canadian small business owners' attitudes and
behaviours around access to credit. It is based on online
interviews with a random sample of 1,049 Canadian small business
owners. All businesses had fewer than five employees, and
an annual revenue under $1 million. A survey with an unweighted
probability sample of this size and a 100 per cent response
rate would have an estimated margin of error of ±3.0
percentage points 19 times out of 20 of what the results would
have been had the entire population of small business owners
in Canada been polled. All sample surveys and polls may be
subject to other sources of error, including, but not limited
to coverage error, and measurement error.
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Media contacts:
Matt Gierasimczuk,
416-974-2124, matthew.gierasimczuk@rbc.com
Janet Gibson Eichner,
416-974-7622, janet.gibson-eichner@rbc.com
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