Funding is crucial for any small business in Ontario because the lack of a source of funding can lead to debt and eventual floundering. Smooth daily operations and growth are impossible without funding, which is why it makes sense for businesses and entrepreneurs to understand everything from sources of funding to how much they need to stay solvent.
Raising Seed Money
Seed money is what any small business in Ontario or elsewhere is founded on because it pays for everything from office supplies and business cards to a website or anything else necessary to begin. This seed money can be raised from an owner’s savings account, via a small business loan or from an investor.
Understanding Cash Flow
This aspect of funding is related to salaries, for a business owner to survive and for employees who must be paid. It also covers regular expenses such as utility bills, buying insurance or taking care of other things that must be paid for if a business is to survive. A cash flow meets expenses until profits start to come in.
Funding for Expansion or Repairs
Expansion becomes a possibility for a small business in Ontario after it starts to outgrow its current location, or if demand for its goods or services increases over time. This is when a new location, the introduction of services, more employees or product and marketing research requires funding. Another thing that must be taken into consideration is repairs in the event of any accidents such as floods, fires or natural disasters that can damage the bottom line of a business. Insurance can cover any catastrophe, but salaries still need to be paid, while equipment still needs to be upgraded or replaced.
Sources of Funding
Funding for small business in Ontario can be raised via a number of options, from traditional bank loans to corporate credit cards with special rates, potential investors, savings accounts or investments from family and friends.
Resources for Any Small Business in Ontario
Starting or growing a small business in Ontario involves all kinds of questions about funding, registration, and licenses. Leeds Grenville Small Business Enterprise Centre is the leading resource center for answers and advice. Contact us today for any information you may need.