Do you know why getting small business funding is the key to success? We do. It’s sort of a science, so be sure to read on.

A lot of small business owners in Canada succeed without outside funding however many small business owners need funding to help them startup, to expand and to cover small business startup costs early on.

Getting small business funding is important to those businesses who need the funding and depend on the funding. Without that funding, the chances of success for that business end up going down the drain.

Not always, but most of the time.

Why Getting Small Business Funding Is the Key To Success

Before you can understand why getting small business funding is the key to a successful business, you first have to understand what the key to a successful business really is. And in our experience, dealing with thousands of small business owners – we here at CanadaStartups sort of have it figured out.

The key to a successful business includes:

• Creating a solid business plan
• Understanding your funding needs
• Being able to cover your funding needs
• Utilizing the funds for your needs
• Pre-planning for growth

While these points may seem obvious people still make the mistakes. So pay close attention.

Creating a solid business plan

You simply need to have a business plan for your business no matter what.

There are options for you; you can write one yourself, use a business plan template, hire a professional or use the #1 rated user friendly Business Plan Builder Tool right here.

A properly developed business plan will prepare you for business and will guide to success.

It’s a business that runs on paper. Which means it will be an outline of your business once you launch.

Understanding your funding needs

Your funding needs can vary from business to business which getting small business funding can be one of the top priorities after you’ve done your business plan.

Remember that while you want money and want to get A LOT of it, it’s not always the best way to approach it.

If you’ve done your business plan correctly, you would have figured out what your funding needs are and exactly what you need the funds for and how much.

While getting money “to start a business” is a good idea, it doesn’t always work this way. Most of the time, getting small business funding is broken down to the specific of what you need to have covered as an expense. Is the money needed to help you pay for staff, or maybe pay for rent of a location, maybe tools, equipment or to perhaps improve cash flow.

Be sure to turn to your business plan to figure out the specifics.

Being able to cover your funding needs

You can’t really get into business without being able to cover your startup and operational costs. If you go in without money, it will be a short trip.

If you however go in prepared and are able to cover your funding needs, or prepare for the funding needs, you stand a much greater chance of success.

This is why getting small business funding is important and a good way to go about ensuring funds are obtained prior to launching your business.

Waiting too long to get funding could be a major mistake.

Utilizing the funds for your needs

You might say “I don’t need funding, I have my own money”, and while this is great it’s not always the best.

There are many funding programs offered bu the government of Canada that you would simply be crazy not to want to take advantage of.

Think about all of the grants, the loans, tax breaks – why not take advantage.

When starting a small business and using your own funds you may be more careful not to spent – which is good but could also result in understanding and being too careful which can impact your business negatively.

Now imagine applying to a government funding program and getting funding to help you purchase equipment, or to help you hire staff – now you won’t worry, you have the money which you will 100% use and ensure your success.

This is why getting small business funding is critical. It’s always easier to use somebody else’s money.

Pre-planning for growth

Another key factor to success in a small business is pre-planning for the growth of the business.

Where will you be  6 months after launch, what about a year after or 3 years after?

These are the things one considers in a business plan and plans ahead especially if you are successful at getting small business funding now and being able to secure it for future developments.

Money is a key factor to the success of any small business. Weather you have it or not, but need it – getting small business funding is one of the top connecting factors in all of the above mentioned sections. Money makes you succeed – if done right, if used right and if obtained on time.

To figure out what type of funding programs the Canadian government has in store for your type of business, try the Funding Calculator Tool and see if getting small business funding is something in your books.