Strategies for success in small businesses


Canada, 26th October: Red tape, cash flow and management of clients are the top three concerns for success in small businesses, reveals the latest survey by a TD Canada Trust small business.  
 

Canada, 26th October: Red tape, cash flow and management of clients are the top three concerns for success in small businesses, reveals the latest survey by a TD Canada Trust small business.
As per the study findings, there are several startup hurdles in small businesses, however, around 97 percent of small business owners feel that owning a small business enterprise is considered to be a great accomplishment and it provides them with a strong sense of pride.

Among the biggest challenges encountered by small business owners every day to increase their profit levels include cash flow, risk management and human resource management.

Around 23 percent of survey respondents stated risk management and stress as a big challenge while 24 percent admitted recruitment and training of staff as something tedious. 22 percent of survey respondents found cash flow as a biggest hurdle in the way of success in a small business. Around 54 percent of business owners admitted that owning your business is far more stressful as compared to working for some other person.

According to senior vice president of TD Canada Trust, Alec Morley, its quite difficult to find every part of the business, hence, it is advisable to analyze the essential strategies determining your enterprise’s health.

So, the business owners themselves need to know which factor it is; whether is total cash in your bank account, the utilization rates or the speed of stock turnover and the business owner must ensure to keep a check on these numbers, advises Morley.

Small business owners work continue to overcome day-to-day hurdles coming in their way, asserted Morley.

Let’s see the three indispensable strategies stated by Morley for overcoming obstacles—  

• For small business owners, there is a compelling need to focus on compulsory measures(like cash flow and stock turnover) that determine the health of a company and not focus on small details;

• They must know how to read their financial statements to ease their communication with buyers and banks a lot more easier; and

• Business plans should not be static documents, rather, they need to be living documents and must be updated every year along with three year forecasts to ensure a risk free functioning of the business.