5 tips for clients with new businesses

Your small-business owning clients are putting all of their energy into establishing their companies.

So here are five tips you can pass along to help them be successful:

1. Develop a sound business plan. Successful entrepreneurs do a lot of background research before they sell their products and services. A business plan pulls it all together. It should include, among other things, the following:

• The type of business you are creating.
• The goals of your business — for both the short term and longer term.
• How you intend to accomplish those goals.
• An understanding of the marketplace, the competition, and your potential customers.
• How you intend to finance your business.

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2. Owners should invest in their own education. Self-education could be as specific as learning how the latest piece of software can help your business, such as marketing, finance and customer services. The more you can learn about the overall operations of your business, the better your decisions may be—particularly if you run a smaller company that requires you to wear more than one hat.

3. Owners should get their finances in order. Save as much money as you can before you start your business: you may need to draw on your savings in the early stages. You should also establish and maintain a good credit history, which will help you when you need to borrow money for your business.

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4. Keep overhead low. There are many stories of entrepreneurs starting out in their garages until they have built up their businesses. Starting small and keeping your costs low lets you make mistakes on a much smaller scale and gives you the time to learn from them. Email and the internet make it easy to start your business from home.

5. Learn from the experts. Take advantage of the expertise of an account and your business banker. An accountant can help you with the books, and find ways to keep your costs low, and do your tax return. Your business banker can advise you on cash flow, the use of credit, investments and borrowing, among other things. She can also share best business practices.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.