Small Business Owners and FinanceA Simple Plan to Take Control of Your Future

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Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

In a recent survey conducted by TD Bank, 667 small business owners (SBOs) answered questions about their management experience, starting their business, confidence in major business tasks, and areas where they need advice or help.

The survey found that many SBOs face challenges when it comes to both their business and personal finances.

Fortunately, a few simple steps can make all the difference.

Most small businesses require the owner to handle many responsibilities: bookkeeping, payroll, hiring, marketing, and customer service.

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

How is a typical small business set up?

Started from scratch

84%Sole proprietor

57%Revenue per year

< $100,000

As companies expand, owners need to give up mundane tasks to take on a more managerial role. You need to start delegating other responsibilities so you can focus on the big picture. You can’t be the chief cook and bottle washer forever.

Jay DesMarteau,Head of Small Business Banking, TD Bank

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Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

But in order to grow their business, an SBO’s needs and roles will necessarily change.

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Business owners are also underutilizing services and expertise that could help grow their business.

84%73%

No dedicated banker

Handle theirown finances

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Even SBOs with tight budgets can get professional financial advice and benefit from expert insights. Starting with your bank is free.

Bankers will give you free advice on how your business looks, how credit-worthy it appears, and tips for growth. They know other people in the industry and can give advice on your business plan.

TD Bank has relationship managers that are focused on small businesses, and each SBO is assigned a banker. You don’t always find that in bigger banks, where small and midsized businesses are less important to their bottom line.

Jay DesMarteau

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3%Commercial Mortgages

24%Business Credit Cards 13%

Lines of Credit

10%Loans

Business Products Used by SBOs

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Business owners often don’t take advantage of the financial tools and products available to them. Just 11% know how to seek credit/financing for their business, and 9% know the right time to do so.

Learning about your options can feel intimidating, but it shouldn’t be. It all starts with just walking into your bank and asking a question. How can you tell if I’m credit-worthy? What do you use to evaluate that? How long should I be in business before requesting a loan?

“”Jay DesMarteau

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Ignoring available tools and resources reduces chances for business growth and expansion.

Friends and Family

Internet

NetworkingGroups

Business Publications

Business Advisors

Banks

Seminars

Other

Where SBOs Turn for Advice

Small Business Associations

College Courses

3rd Party Seminars

Online courses

Bank Seminars

None of the Above

Where SBOs Turn for Education

45% 56%

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

SBOs tend to rely on family and friends and the Internet for business advice—not bankers or financial advisors.

If you know you have a weakness, courses and seminars are a great idea to fill that gap. Attend industry associations, conferences, or trade shows at least once a year. You’ll stay cutting edge and learn big, strategic ideas and best practices.

Jay DesMarteau

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Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

To fill knowledge gaps, owners should consider continuing education.

Focus on the big picture. Use the free resources available all around you. Consult with a banker to understand how you can take control of your business future.

Got more questions? Contact TD Bank to get your conversation started.

Visit www.tdbank.com/smallbusiness or call1-855-278-8988 to speak with a Small Business Banking Specialist.

Get Started Today

Finding theRight Solutions

Part II:

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Expert Insights Jay DesMarteau, Head of Small Business at TD Bank, recommends the following 5 steps to plan for your SMB’s future:

Manage your time

Plan ahead

Educate yourself

Consult with a professional

Be proactive

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Eventually, your SMB will need a banker and accountant, especially if you plan to sell it when you retire. Remember that expansion brings in lots of new needs, and you have to be able to pay for employees and inventory at least 30-60 days before you have incoming cash flow. You’ve got to plan ahead.

Jay DesMarteau

“”

Plan ahead

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future

Bankers will give you free advice on how your business looks, how credit-worthy it appears, and tips for growth. They know other people in the industry and can give advice on your business plan.

Our bank has relationship managers that are focused on small businesses. You don’t always find that in bigger banks, where SMBs are less important to their bottom line.

Jay DesMarteau

“

”

Consult with a professional

Small Business Owners and Finance:

A Simple Plan to Take Control of Your Future