It is also important for small businesses to have adequate financial resources to assist in the future growth and development of the business. Most businesses fail due to financial problems such as inadequate working capital, cash flow problems and increased debt financing. Undercapitalization is a big problem among small businesses where too much debt is obtained too early and an overly optimistic estimate of revenue is projected. In most cases, the start-up or expansion phase is when financial support is most predominant. However, financial institutions, organizations and federal and provincial departments are readily available for advice and support.
Financial statements are the most powerful tool in deciding the success of a business.
Conduct extensive market research prior to starting up your business and continue gathering information throughout the life of the business. Prepare a detailed business plan so you will not lose sight of your goals and objectives. Secure sufficient financial resources for future development or expansion. Remember, you are not alone. Understand the skills and qualities you bring to your business.