- What kind of equipment will I need?
- How can I better my chances of success?
- What is a business plan and why do I need one?
- How much money do I need to get started?
- How do I go about financing a business?
- How do I apply for a loan?
- What do I do if my loan request is rejected?
- Should I start a business in my home, or in a rented office space?
- How do I begin accepting credit and debit card payments?
What kind of equipment will I need?
Again, this will depend on the nature of your business. Some office equipment found in small businesses includes:
- Computer
- Printer (many prefer laser printers for the professional image they create for marketing materials, etc.)
- Fax machine
- Separate telephone line for business number with voice mail
- Separate telephone line for fax number
- Internet connection (including e-mail and web browsing capabilities)
- Photocopier
You might consider investing in a multi-function machine that combines a printer, fax, scanner, and copier in one unit. If you require other specialized equipment or tools, you'll want to be sure to include these purchases in your budget when you're planning your business.
RBC Royal Bank offers equipment leasing options for a wide range of equipment types. To find out more, contact a RBC Royal Bank branch near you.
How can I better my chances of success?
- Don't be too timid – or too proud – to ask for help. Network with other established small business owners to find out how they handle similar situations.
- Don't underestimate your financial needs, particularly cash flow. Have a solid understanding of the best and worst-case scenarios for your company, and have a plan in place on how to handle both.
- Remember that marketing your business is an ongoing activity.
What is a business plan and why do I need one?
A business plan is a document that clearly defines your business and identifies your goals. The typical business plan includes a current balance sheet and projected financial performance, an income statement and a cash flow analysis. A solid business plan will help you allocate resources properly, handle unforeseen complications, and plan for growth. If you need to go to the bank for a loan, a business plan will provide specific and organized information about your company and how you will repay the money.
For tips on writing a business plan along with sample plans, visit our Big Idea Web site.
How much money do I need to get started?
This depends on the kind of business you wish to start. Do you have special equipment needs? Will you be working at home, or will you require a separate space? Will you need to hire employees right from the start? These are some of the questions you'll need to ask yourself, many of which you can answer with your business plan.
Once you have taken care of your building and equipment needs you also must have enough money on hand to cover operating expenses for at least a year. These expenses include your salary as the owner and money to repay any loans you might have.
How do I go about financing a business?
The majority of small businesses are started with personal funds from savings, a company buy-out/retirement lump sum, or a loan from family members. Some people take part-time jobs so that they'll have a steady source of income while their business gets going. If your needs are greater, RBC Royal Bank offers several financing options to help you establish and grow your business.
How do I apply for a loan?
When you go to RBC Royal Bank about a loan, you'll more than likely be asked these three questions:
- How will you use the loan?
- How much do you need to borrow?
- How will you repay the loan?
Some of the things the bank may look for in evaluating your application include:
- Your personal and business credit record or credit rating
- Your managerial skills, background and experience
- Your ability to repay your loan based on cash flow projections
- The long-term prospects for your particular industry
For amounts up to $50,000, a one-page application is all RBC Royal Bank requires. For amounts greater than $50,000, you will need to supply financial statements and/or projections.
The Canada Small Business Financing Loan is a government guaranteed loan offered through the RBC Royal Bank that provides up to $250,000 in financing to help small businesses get started and grow. This loan is a competitively priced business improvement loan designed to provide businesses, such as start-ups with limited equity, with fixed asset financing. To find out more about this particular loan and whether you might qualify, contact a RBC Royal Bank branch near you.
What do I do if my loan request is rejected?
First and foremost, don't despair. If you are turned down for a business loan, it is likely for one of the following reasons:
- Evidence of late payments on your personal and/or business credit history
- Your business, or the industry your business is in, appears too risky or unpredictable
- Not enough security for the loan
- Incomplete business plan
- Insufficient cash flow to ensure regular repayment of the loan
Should I start a business in my home, or in a rented office space?
Many small business owners start their businesses from their homes because they offer low-cost office space, as well as giving you the freedom and flexibility to work the hours you want. Whether you choose to do this or not depends on how suited your business is to a home environment. For instance, if you're operating dangerous equipment or doing things that conflict with residential zoning laws, you'll have to locate your business elsewhere.
Other small businesses make their home in low-cost shared office complexes. Others swap space for bartered services. If it suits the nature of your business, you can go completely “virtual” and have no office space at all – just a laptop and telephone access and you're all set.
How do I begin accepting credit and debit card payments?
RBC Royal Bank would like to introduce you to Moneris Solutions - Canada's largest credit and debit card processing company. Please note, the following will be required prior to setting up credit and debit card acceptance:
- A commercial account number set up in the business' name for deposits
- Projected monthly credit card volumes and average transaction amount
- If you are applying for e-commerce capability, you will need a current account at RBC Royal Bank as well as your URL address and e-commerce provider
- For partnerships, we require both signatures, unless one owner has more than a 50% ownership
- Personal information such as a driver's license and social insurance number.
You can contact Moneris at 1-866-MONERIS (666-3747) online at www.moneris.com.
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