Canadian business owners looking to expand
September 24, 2012
At some point in nearly every business' life cycle, the owner has to consider whether or not he or she wants to expand. This can come in the form of opening a new location, offering additional products, hiring more employees or a number of other options. This is largely regarded as not feasible during times of economic turmoil, so firms in many nations have opted against branching out during the last four years.
However, business leaders in Canada seem to be in a place of more stability. According to a recent survey, the majority of administrators are more optimistic about their outlook, with many saying they plan on capitalizing on the feeling and expanding their company.
Poll predicts more investment
According to the recent Leger Marketing survey of Canadian small business owners, 85 percent of leaders are confident about the future success of their enterprise. As such, 43 percent of respondents explain they are planning on expanding their company in some fashion within the next three years.
This sentiment is particularly rampant throughout the community of new startup owners. Nearly 60 percent of those still in the early stages of business production want to expand by the end of 2015, while the same can be said about for approximately 34 percent of established leaders.
The largest amount of optimism comes from leaders in Quebec, Manitoba and Saskatchewan, 90 percent of whom are confident in their future abilities. The least amount, however, occurs in British Columbia, with 78 percent exuding optimism.
Despite the relative confidence throughout the nation, small company leaders still have a few challenges to endure. According to Canadian Business, even in the midst of optimism from the Leger Marketing poll, industry growth in the country in the first half of 2012 came in below expectations, partially explained by the weakening of the European economy.
"While it's positive to see that startups are eager to expand, the poll indicates that there are lessons to be learned from experiences businesses who have undergone expansion phases in the past," said CIBC executive president of business banking Jon Hountalas.
Leaders need to weigh their options when they are deciding whether or not to expand. The first, and potentially most important, step would be to check their accounting programs to make sure they have the necessary amount of capital needed to hire new employees, rent a new storefront or expand product offerings.