5 things to know if you're ready to grow your small business in Canada
"Small businesses are the heartbeat of the Canadian economy," said Daniele Farinaccia, Senior Vice President, Small Business Banking at TD.
Farinaccia recently took on a new mandate leading Small Business Banking at TD. He's excited to help support TD clients as they launch and grow their ventures in Canada.
"Our ability to give the best of the Bank has never been stronger to help small businesses grow," he said.
TD, he said, can provide personalized advice and support to small business owners thanks to the Bank's robust network of branches across Canada. Branches have small business banking specialists on site who are ready to help support small businesses through all stages of growth.
"We're part of an ecosystem," he said. For instance, business owners can be connected with colleagues with different expertise across TD to help with all aspects of their financial picture, including wealth, retirement planning and personal banking.
Often at TD, small business banking specialists become a crucial part of a business owner’s network of advisors. These colleagues provide financial education presentations and events aimed at boosting small business growth in Canada – not only among clients.
Many work with diverse client segments – such as Black entrepreneurs, 2SLGBTQ+ business owners, and Women in business – and can help provide more tailored advice and make connections among these communities.
While Farinaccia recognizes there are headwinds facing Canadian small businesses, from tariffs to rapid technological expansion, now is also an exciting time for Canadian entrepreneurs. The country faces a once-in-a-generation investment supercycle, or sustained period of investment and growth, that could boost the overall economy and opportunities for small businesses.
Whether a small business is looking to grow now or is eyeing an expansion in the future, Farinaccia and his team recommend entrepreneurs keep the following tips for growth in mind.
1. Surround yourself with an A team
No matter the size of a business, every entrepreneur needs a team. Julie Dimitri, who leads TD Women in Enterprise — a small business banking group dedicated to supporting women business owners — stressed that many business owners, and especially women, tend to go at their businesses alone.
"There are three people you need to scale your business," she said. "A lawyer, an accountant, and a banker."
Developing a relationship with a banker can help a small business owner navigate the types of banking and credit solutions they might need to grow.
2. Separate your business and personal finances
It can be scary to open a business account because when you do, your entrepreneurial journey can feel more real. Dimitri said that along with being better able to manage your business' expenses by separating them from your personal accounts, opening a business account can be beneficial in the long run.
To apply for certain small business loans, you need a business name and history, including at least a six-month relationship with a Canadian bank. Having a separate account can also make you look more professional to potential vendors, investors, and partners.
3. Manage your cash flow daily
Many businesses struggle to balance cashflow. It's important to have a deep understanding of how much money you have coming into your business, and how much you have going out. At TD, a small business banking specialist can help a small business owner review their conversion cycle and look for ways to help optimize it.
4. Find and build efficiencies
As your business grows, you will likely have more on your plate. Farinaccia said that technologies such as AI can present new risks to small businesses, such as attacks on cybersecurity. But they can offer new opportunities, too.
With AI, small businesses can start to do more with less — like one TD small business client who uses it to automate some admin work and transform her interior design sketches into photorealistic images.
TD recently donated $1 million to educational technology company Tech Spark’s AI Lit for Entrepreneurs accelerator, an eight-week AI skill building program for underrepresented founders to help further AI adoption among these small business owners.
5. Build a growth plan
When in growth mode, many small business owners think they only need a business plan, said Dimitri. Instead, she recommends a growth plan that outlines what you would want to accomplish is a specified period of time, such as five years.
By working with your bank early in your entrepreneurial journey, you can think growth from the outset by learning about the types of credit products and other solutions you might need to reach your goals.
