Small Business Funding in Canada: 5 Tips To Getting Funding
Starting a small business can be real tough! We know, we were a small business once upon a time and had to go through all of those fun, hair pulling steps to get to where we are today. A lot of work, a lot of coffee, a few people, patience and most importantly, money!
This is where these 5 tips on small business funding in Canada could have come in handy at that time, but at that time we did not have them. Now we do, so saddle up and get ready to pay close attention to these 5 tips to get your small business funded.
Okay look, getting small business funding in Canada is pretty easy, but you do have to know where the money is first.
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The money comes from a number of places, so let’s look at those first:
Money from your personal savings
And yes, I mean that cash you got stashed underneath your mattress, or tucked away in a very low interest savings account not doing anything, or the jar with coins for the next vacation.
Whatever you think you are doing with it, that money is useless unless you put it to good use. In this case, starting a small business, but only if you know how to actually do it properly.
Money that is not really yours (credit)
If you own a home you probably have some money in it, considered collateral. Maybe you have a car, perhaps a line of credit or a credit card.
If you do, this is a great source of funding to help your small business get funded through the startup process.
Now, should you go for this right away? Probably not a good idea unless you are confident you can use it, pay it back if all goes south, and not have to worry about it.
Family and friends money
Everyone loves you, believes in you, and wants you to succeed with your small business.
Will these same people consider funding your small business?
You do not need a lot, maybe some from your parents, some from your cousin, some from your best friend, some from your aunt, and so on.
Sounds easy, does it not?
Just be sure that you know what is attached to borrowing money from friends and family and most importantly, make sure they know the possibilities, good and bad.
Let the government work for you
Small business funding in Canada does exist. There is a reason why we put Canada in there. Of course you are in Canada, but did you know that your very own government has small business funding programs available to help you as a small business?
Yes, it is true.
Government grants, small business loans, tax breaks, relocation incentives, it is all there for the taking.
You do have to be eligible, have a business plan, meet the criteria, and know which programs you can apply to, but it is all there.
So look at it this way, if you are looking for small business funding in Canada, these above sources do have you covered.
What will you do?
Most people understand the sources are there, but only a small percentage of people actually take the necessary steps to get funded.
If you are a serious entrepreneur, these 5 tips to getting small business funding in Canada are right for you:
Write a professional business plan first
You cannot be serious asking for money from anybody to start a small business without having a business plan.
Would you give money to somebody who just says, “Hey, I have a great idea, give me some money”?
If you are a business minded individual, you know that having a business plan done can mean the difference between success and failure.
A business plan actually prepares you for the future of your business. It shows you the path that you need to take, not to mention what you need funding for and how much of it.
See what the competition is doing
Your competition can tell you a lot about what you need, financing needs included.
By simply looking at your competition, as a startup business in Canada, you could say they have a great website, they advertise here and there, they have a certain number of people working for them, and they are using the latest tools and technology.
You can pick up the needs that you want to have met with funding and work your way through it.
Do you need a website? Yes. How much is a website going to cost? Find the low end providers, high end providers, and meet in the middle.
The same logic applies for advertising, hiring, and more.
Break down your funding needs
What you need funding for will be determined by your business plan and by researching your competition.
While you may want to get $100,000 to start up because you want the latest and greatest, it may not actually be what you need.
Did you know that most businesses starting up struggle and barely hang on during the first year?
Those that struggle within the first year and make it are twice as likely to succeed and pass ten years in business than those who have it all within the first year.
Break down your funding needs to the smallest detail. Be sure to only list what you need and what you need initially to make it happen. There is no need to plan six months, one year, or longer just yet.
Get help searching for small business funding in Canada
A lot of people know where they can get money from, but asking for money is scary.
You may not want to use your personal savings, borrow against your house, or even ask your family and friends. Maybe you just want to turn to the government. You do pay taxes, so maybe it is time to get some of that money back.
Government funding is available across Canada. It comes in many different forms such as government grants, government loans, and tax breaks.
Finding these funding programs can be difficult since the funds are not always from the Canadian government directly. You may be eligible for provincial, local, and federal programs as well, so some digging is required.
Typically it takes three to four weeks to do this on your own, or you can consider getting expert help and using the Funding Database at CanadaStartups.org to get a head start and access available government funding programs.
Finally, find funding by thinking outside the norm
Small business funding in Canada is available.
As mentioned, it is available from multiple sources, but in order to actually get it, it is highly recommended to think outside the norm.
What would you usually do?
Not use your personal savings, they are for emergencies. Forget that!
Borrow money from the bank? No way, do not need any more loans.
Ask family and friends for money? That is just embarrassing.
Get government help? This seems too complicated.
If you are going to think that way, starting a small business and getting funding just may not happen.
If however you want to think differently, make a change, take a chance, and get your small business in Canada funded.
Government funding is highly recommended and an excellent option with minimal risk.
Be sure to follow these 5 tips to getting small business funding in Canada for your own business.