News Releases

TORONTO, October 20, 2008 – Every economic cycle presents unique opportunities. The following provides a list of tips on managing through turbulent times for small business owners and those planning on opening a business.

Small Business Tips

1. Map out a business plan. Detail both short-term and long-term goals, taking into account as many factors as possible.
2. Create an Advisory Council. Build a close relationship with a commercial banker who can help you understand industry risks, provide advice and even networking opportunities. Creating an advisory council with a banker, lawyer, accountant and others can be a great way to collect information and generate ideas.
3. Thinking of Starting a Business? Consider a Franchise.
   
   • Franchises are often backed by corporate offices with access to market research, competitive analysis, marketing and advertising, so new owners don't have to do it all on their own.
   • Nearly four times as many franchises succeed, compared to independent small businesses.
4. Secure Finances. Small businesses have unique borrowing needs. Look for financing products designed with flexible features to meet small business objectives.
   
   • Small Business Line of Credit/ Small Business Homeowners Line of Credit. Small Business Lines of Credit can provide a variable-rate credit facility with a very competitive interest rate. Since you borrow only what you need, when you need it, you control your interest costs.
   • BMO's Commercial loan insurance plan can help business owners prepare for every twist and turn that the future might hold.
5. Avoid the Pitfalls. Entrepreneurs are optimistic by nature -- which is a good thing. While a recent Harris/Decima report commissioned by BMO Bank of Montreal showed that 92 per cent of small business owners believe they can withstand financial difficulties, almost two-thirds were so confident that they had no contingency plan in place in the event of an economic downturn.
   
   • Contingency planning should be of paramount importance particularly in times of economic volatility.
   • Small business owners should seek advice from a commercial banker on how to develop a contingency plan that is best-suited to their business needs.
6. Networking. Look for networking opportunities in your area that are specific to your industry. Remember, your banker, lawyer and accountant can be great sources for business contacts.
7. Stay informed. Regardless of the economic conditions it's critical for small business owners to stay on top of current affairs. Subscribe to your local and national newspapers, trade publications and online resource guides. Take advantage of free and credible information sources.

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