A total of 99.8% of all Canadian businesses are small to medium sized firms, making these businesses, of which we self-employed folks are a part of, the backbone of the Canadian economy.
Furthermore, micro-businesses (1-4 employees) represents 53.8% of all private employers.
Yet, it’s a well-known fact that we don’t have the easiest path when it comes to accessing services and programs to help us build and grow our micro businesses – thinking CEBA anyone? But I digress.
Being self-employed means having no “on-the-job” training and also, sometimes, not having the money to hire someone to help us with the task, project or management of our business. This leads us to the ever popular entrepreneurial tactic of DIYing our way through managing our businesses. My Wix DIY website comes to mind – thankfully, after two years, I was able to hire a professional to build a new website, thank you Sherry Crummy.
Most of us DIY the managing of our business, not because we want to, but because of financial constraints and cashflow issues. This is so because many micro businesses are unable to find financial help through the banks. In fact, twenty-five percent (25%) of micro and small businesses have had their credit application rejected, and fifty-two percent (52%) of self-employed professionals feel that banks are simply not designed to lend money to most self-employed businesses.
All this leads to almost half (46%) of self-employed professionals admitting that their method of managing their money (both business and personal) needs to be improved in order for their business to really grow and thrive.
The following are some of the money stuff that self-employed professionals admit to needing help with:
- Figuring out how much money to put aside for taxes (incl HST,GST)
- Regularly reviewing finances to determine if you are indeed making a profit.
- Maintaining a budget (business and personal)
- Paying yourself a consistent and realistic salary.
- Reducing debt.
- Assessing business expenses.
- Not running your business solely on credit.
- Filing taxes.
- Having a safety net (pension, disability, insurance, contingency fund)
The method we use to DIY our business finances, is usually the same method we use in our personal finances, and this could mess up our business or hold back our business big time! In other words, if we are carrying a lot of personal debt, more often than not, our business will end up in debt as well. This happens because we are simply using what we know, not realizing that the approach needs to be different.
Managing the money aspects of our business (and personal life) needs to be done by someone who is trained and qualified to do so, and not by a business owner winging it, because she cannot afford to hire a professional. I tell my clients that they should save that energy and use it to focus on mastering their trade.
It’s about time that our financial institutions step up and show up for us!. Covid-19 has changed the economic landscape, and as small businesses, we have had to pivot in order to survive. I am wondering if the financial institutions are also willing to pivot so they can actually help us to survive, and in turn help the Canadian economy to rebuild and thrive.
If you are a business owner and you feel you could use some help with figuring out your finances, please reach out to me. I have affordable and flexible payment options. https://PamelaGeorge.as.me/