Being an entrepreneur can often feel like participating in a season of Survivor. You see your fellow contestants compete for survival, only for them to drop off one by one, until only a few remain. In the business world, companies are also competing for survival: each year, thousands of businesses fold and leave the market, with some even filing for bankruptcy.
According to research done by Innovation, Science and Economic Development Canada, only approximately 42% of small businesses survive the first ten years. Given the fact that the number of businesses typically increases every year with an average of 95,000 businesses created per year (from 2010-2015), it’s safe to say that competition is fierce in the business marketplace.
To stay ahead of the game and to understand why small businesses fail, here’s what you need to know about small businesses in Canada:
Lack of capital and poor financial planning are the main causes for small business failure, but this can be prevented. While there are other considerations that you cannot control, such as economic events, a lot of the causes for small business failures can be avoided. Our team of bookkeepers, accountants, and tax specialists can provide consultation on financial management. With services like cash flow planning, tax planning, and business budgeting, we can help your business not just survive but thrive. Give us a call at 647-476-2145 or schedule an appointment to get started on your road to success.