Are you a small business owner or thinking about becoming one but have a lot of questions? If so, you are not alone and Scotiabank wants to help answer your questions. We've compiled a list of the most commonly asked questions by small business owners for you to reference.

If you have questions about your specific small business, please visit your local branch where one of our Small Business bankers will be happy to answer your questions.

Do I need a business plan?

While it may no longer be necessary to present a business plan the first time you meet with your banker, it is an excellent way to organize your thinking and planning about your business.

A business plan should include a brief description of your business; your intended market; the types of service you will provide; how you will provide the service and how you will finance your business. Both new and established small businesses should have a plan. How often they look at it is up to them. Small business owners should review their strategy at least once a year, or when a major change to the business is anticipated, to see if everything is working well to reach their goals.

What should I include in a business plan?

A business plan can be broken into five key sections plus an executive summary:

• Business Description – information about you, your business, your goals, your business mission statement.
• The Marketplace – information about your industry, your competitors and your customers.
• Sales and Marketing – how you attract customers to your business, sell to them and provide service.
• Business Operations – how your business works including key management and staff and their roles, your suppliers and alliances, your plans for changes to your business and contingencies.
• Financial Information/Projections – provide information, both personal and business, that will show projections that you will have enough money to support your business and any debt from money borrowed.

Where can I find market research?

The Federal Government has some great sites on the web for this kind of information including Canada Business Services for Entrepreneurs (www.canadabusiness.ca) and Industry Canada (www.strategis.ic.gc.ca). There's a lot of information available from these resources that will help with your business planning.

What kind of financing will I need?

You can look to traditional bank term loans, operating lines of credit, leasing or credit cards. Choosing your financing options will depend very much on the kind of support you will need to get started and the amount required.

Your own assets and savings may also be an option. Family and friends may be a good source for financing because they may be interested in investing in your business but have no desire to be involved in running it. Bringing in a partner is an option – either silent or participatory.

What kind of location do I need?

You'll need to decide whether you want to operate out of your home, rent your premises or buy – much depends on the scale and nature of your business. You'll need to ask yourself what image you want to project to potential and repeat customers. Ask yourself what are your needs? Do you need to be close to transportation routes, is it space you need, storage or specific zoning? Will customers be visiting your premises? Also remember to stay within your budget, premises can be a major expenditure.

Should I be online?

For research and communication purposes alone most, if not all businesses should have internet service. It costs very little and can be tremendous resource. As for a website, at a minimum you should consider a website that acts as a marketing brochure: provides the basic information about what your company does and how to contact you. More sophisticated websites can manage sales, help with customer relations and be the lifeblood of your business if you can sell your product online.

What kind of marketing and publicity do I need to do?

Turning a perfect stranger into a happy customer takes more than a great product or service. People need to know about your offering, be willing to pay for it and be able to find it.

Creating a sales and marketing strategy will help outline ideas for attracting and satisfying customers. It will help you identify, know and communicate with customers and potential customers. When thinking about a sales and marketing strategy we recommend looking at the Four 'Ps' of Marketing: Positioning, Pricing, Promotion, Product.

When do I hire – and how?

Some small businesses manage quite well without employees. Some couldn't get through day one without them. Part of the decision to hire will be based on how much work you are generating, how much it will save you in terms of time and money and how much it will cost you (salary, management time, responsibility.) Often the bottom line won't give you the full answer. For example, you may come out even financially, but improve customer service. Contact your Provincial Ministry of Labour to obtain free guides on becoming an employer.

Start the process of finding an employee by writing a job description. Know what you are looking for, the hours you need and what you are willing to pay. A classified ad may be expensive, but can generate lots of response.You should consider an online job posting service as well. Local colleges, high schools and personnel offices can be another good resource. Word of mouth is of course, always useful.

When is expansion necessary and how do I start?

Expanding your business can be an exhilarating time but before you jump on the 'bigger is better' bandwagon, stop and think what it is you want out of your business.

• Can the market handle your expansion?
• How will expanding affect your bottom line?
• How will expanding affect your existing customers?
• Will your suppliers be able to grow with you?
• What will the personal impact be on your work/life balance?

When considering expanding your business, revisit your business plan and revise it if necessary. Ask yourself the same questions you did with your last business plan but with the expanded scenario and see if you will have to hire staff, move to a bigger place, or buy new equipment. But, most importantly make sure it fits with your personal and business goals.

Should I join a business association?

Often small business owners feel they are on their own when it comes to running their business but associations such as the Canadian Federation of Independent Business (CFIB), Retail Council of Canada (RCC) and the Canadian Professional Sales Association (CPSA) are there to help. 

Small business owners and professionals should consider joining a professional association because often they provide many value added services, such as:

• Credibility to your industry
• Education programs
• Industry data, such as survey results and benchmarking data
• Act as lobbyists on your behalf with governments
• Opportunities to network
• Special rates on business expenses like insurance, telephone rates and banking, and newsletters and e-mail updates.

Learn more about Scotiabank's commitment to small business with simple, practical solutions that put you in control of your day-to-day business and personal banking.