Sept. 19, 2013, Toronto – Many Canadians hold misconceptions about small
businesses, despite an RBC poll showing that 88 per cent think small
businesses are vital job creators.
"Because every small business is unique, there is no one-size-fits all
solution to starting and running a small business," says Kim Ulmer,
vice-president of small business at RBC, in a media release. "Owning a
small business can be incredibly rewarding, but the path isn't always
clear."
With Small Business Month around the corner, RBC is offering advice to
set the record straight about some of the most prevalent myths about
small business.
Myth: For small businesses, growth is always a good thing.
Fact: Growth is almost always a good thing, as long as it is
controlled. Being able to scale up for a big order or ensure the right
cash flow should be paramount in your growth strategy. Also, some
business owners are content with their size, and don’t have any goals to
grow – this is okay.
Myth: Small businesses offer little job stability.
Fact: While this might have been true once upon a time, Industry
Canada notes that 75 per cent of Canadians are now working in companies
with less than 10 employees. Often these small businesses offer a more
engaged environment where the employee has a stake in ensuring happy
customers and long-term success. In fact, an RBC survey shows that
Canadians are very willing to support small businesses, with 61 per cent
of Canadians saying they would pay more for a product or service to
support a small business and 83 per cent saying they support small
businesses in their community by doing business with them or helping to
promote them.
Myth: Small businesses can't provide the perks and benefits that larger organizations can.
Fact: Many small businesses are able to offer their employees
more meaningful perks because they don't have to scale them to hundreds
of employees and they can be tailored to individual personalities. Group
benefit plans can be tailored to meet the unique needs of small
businesses.
Myth: Small business owners don't have the resources for
professional support, including accountants, bookkeeper, lawyers and
assistants.
Fact: The adage holds true – sometimes you have to spend money to
make money. Small business owners often wait too long before seeking
advice. Professional support can often help make small businesses more
profitable and more sustainable long term. With a support team, small
business owners can spend more time focusing on their business.
Myth: Small business owners get the freedom to focus most of their time on their core business.
Fact: While this is the goal, it can be difficult for small
business owners to take time away from working 'in' the business to
working 'on' the business. Being smart about planning and using
resources can allow small business owners to spend more time on core
activities.
Myth: Lending is not readily available for small businesses – especially for new Canadians.
Fact: While it is true that many prospective small business
owners run into challenges when securing funding, it's often because
they haven't been able to make the right business case or are
under-prepared or under-capitalized. It is not because the funds are not
available. An advisor can provide the tools and expert guidance to
create a compelling business case and help to determine appropriate
sources of financing.
Myth: Small business owners can write off all expenses (including those in their home).
Fact: There are government rules about what can and cannot be
written off at tax time. While there are many expenses that small
business owners can claim; it's important to understand exactly what
they are entitled to. For a full list of business expenses, visit Canada
Revenue Agency business expenses.
Print this page
