Sorry Folks, There are No* Government Grants

In ancient Greek mythology, "Cassandra" was the bearer of bad news. True to my namesake, I have to tell you, there are no* Government Grants for small business. *At least, not in the GTA/southern Ontario, not for start-up purposes, not for the 95% of small businesses types that I meet with, and not grants, as in free money you don't have to pay back later.

Do yourself a favour, and get over thinking that someone is going to hand you the money to start your business. Start saving, scale down the start-up vision, get friendly with your very rich, old uncle or make some other adaptation in your planning. I've been doing this job for 9 years, and this has been true all this time, and for at least a decade before that. And there is nothing on the horizon over the next 18 months.

Let me tell you what there is:

• Incentives, once your business is established (ie. subsidies and rebates on some specific expenses)
• The SBFA - Small Business Financing Act - where the Government of Canada will "underwrite" your bank loan so that if you can't pay it back, the government will cover 85% of it, taking most of the risk away from the bank; this applies only to purchases of land, buildings or heavy equipment. Inventory, payroll, administration expenses and other monthly operating expenses do not qualify.
• Support programs for tourism, farming and other specific industries rare in Brampton

Please, do not get lured into advertising that promises millions of dollars in and easy access to government support...particularly if you have to PAY to get hold of the information or if there is a fee to apply. And don't be fooled by pretty red and white graphics that look something like the Canadian flag - this does not mean it's a Government of Canada website.


Here are the safe places to check into government funding:

Province of Ontario:
http://www.2ontario.com/software/government_programs.asp

and

Government of Canada:
http://www.canadabusiness.ca/eic/site/sof-sdf.nsf/eng/Home.

A "To Do" List for Quieter Times

Things to Do When Business isn't Brisk:

• Revamp your Business Plan
• Refresh your marketing research
• Analyze your competitors
• Conduct client focus groups
• Create your post-recession marketing plan
• Pull out your "Bring Forward File"
• Network
• Cold Call
• Attend Professional Development events and workshops
• Bring in a sales trainer for ALL of your staff (reception through to CEO!)
• Clean up databases (not that you EVER let them slip...)
• Create/update educational documents for your clients
• Purge! Your desk, cupboards, shelves, filing cabinet
• Clean up your electronic files while you're at it, and your Internet Favourites
• Catch up on holidays
• Go to the gym on your lunch break (take a lunch break for a change!)
• Launch a Blog ;-)

Have good employees you can't keep busy but don't want to lose?

• Sales Training
• Customer Service Refresher Training
• Offer all staff commissions on sales
• Offer them a one-time bonus week of holidays
• Offer a summer leave of absence
• Propose a 4-day work-week
• Consider a 2-week summer shutdown

I will update this list as new ideas come forward.

A Recession Changes Habits

A recession is not the typical time to be thinking about business growth opportunities, but with an open mind, you might just find that there are some. Consumers are creatures of habit, buying in the same patterns and from the same vendors often for years at a time. A recession shakes up these spending habits. Consumers will break from routine to try new products and services, not just those with a lower price point, but those that offer best value for money.

In mass quantifies, this is a market shift or switch, and while it’s true that a tough economic period is characterized by lower overall spending, this period can often present an opportunity for smart businesses to grab some market share, or even introduce new lines. A market switch creates demand for new products and services. Perhaps your company can be the one to make them available.

Start by analyzing changes in your own spending habits, both as a business owner and individual. In particular, take notice of new suppliers/stores that you’re considering, and replacement items for those you are no longer satisfied with. Observe new products that are growing in popularity and determine if they are fads, or the beginning of a longer-term trend. Make time to read your trade journals, association reports, and the lifestyle section of the paper for social changes that will have economic influences.

Can you discover a gap in the marketplace? Is there something in demand that is not readily available that you could provide? What related products and services are associated with this growing demand? Of course, it goes almost without saying that you’ll need to do a full feasibility study before jumping into a new business line, particularly if it does not target the same base of clients you currently have. Be sure to listen to customers – have they asked for the products/services you have in mind?

It’s also important to think of the market switch concept from a defensive position. Canadian consumers will spend more time researching prior to making a purchase (than ever before). Are you providing the information, assortment, delivery time, or customer service they need to stick with you? Your competitors will be only too happy to serve any of your habitual customers, should they stray. Because a recession is a time of market switches, your business should be actively ensuring your loyal customers have a reason to stay loyal.