Tips 19-21

Tip #19: Convenient pay options

There are a variety of pay options available to help your business:

Here are some of the payment areas you'll have to consider right from the start:

Paying suppliers

Timing supplier payments is a smart way to save and manage your cash flow effectively. Take advantage of extended payment terms, supplier credit and early payment discounts.

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You can also save time - and protect your reputation - by ensuring your cheques are always covered.

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Paying employees

Employees rely on you to do payroll calculations accurately, send payroll tax deductions to the government and issue their cheques.

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Paying yourself

How you pay yourself will depend on the business structure you choose:

• Sole proprietorship or partnership
• Corporation

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Tip #20: Calculating your cash flow

Specialized bank services can help make it easier to stay on top of your cash flow.

Control money coming in and going out

Knowing your cash position at all times - the balance in your bank account, outstanding receivables, etc. - means you'll never be caught off-guard.

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Reduce debt and earn extra interest

Arrange to have your debts paid down automatically when cash in your account exceeds a given amount. Or move money between your RBC accounts online, so your funds can earn higher interest until you need them.

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Pay less interest and service charges

To keep interest and service charges down, pay off your line of credit and business credit cards as soon as you have funds available in your account.

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Spend less time tracking and reconciling

You can use RBC Online Banking to track who you have paid, who has paid you and which payments are still outstanding.

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Get more from your cards

RBC offers credit and client cards created specifically for business, so you can spend less time managing your money and more time managing your business.

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Delay paying bills

For most utility bills, tax payments and other recurring fees and subscriptions, take as long to pay as possible. You can use the cash for other purposes until then, which keeps your borrowing costs down.

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Tip #21: Turn weaknesses & threats into strengths & opportunities

A SWOT analysis identifies your business's Strengths, Weaknesses, Opportunities and Threats (SWOT). It's designed to help you uncover the internal and external factors that can help or hinder you in achieving a specific business objective. It's fast, inexpensive, and helps you focus on your vision and objectives.

Step 1: Answers key SWOT questions

Strengths What do you do especially well? What resources do you have that other companies don't have? What are your competitive advantages?		Weaknesses What do you do poorly?   What activities detract from what you do best?   Where can you improve?
Opportunities What opportunities currently exist in your business? What trends are influencing your industry?   What changes are occurring in your industry’s regulatory environment? What changes are occurring in technology related to your industry? Are there demographic changes occurring that you should consider?		Threats What obstacles do you face?   What are your competitors doing and how might it affect you? Are there any planned regulatory changes?   Do you have the cash available to meet present needs? Can you maintain service levels or will you need to increase staff?

Step 2: Write down your business objectives for the next year.

If your objectives seem realistic, use your SWOT findings to determine how you can use your strength, avoid your weakness, exploit each opportunity and defend against each threat.

Remember, too, SWOT analysis is an ongoing exercise: review your situation regularly, track your progress and make adjustments, as required.

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				Contact Us An RBC small business advisor can provide the advice, tools and other resources to help you create your ideal business. Learn More Suggest A Tip

The content provided here is for informational purposes only. You should consult your own professional advisors when implementing any strategy to ensure your individual circumstances are properly considered and that your actions are based on the latest available information.