Staying Afloat in a Sea of Recession: The Canadian Guide to Small Business Survival

Ann Turner is Financial and Budget Manager, University of British
Columbia Library.

When survival rather than growth becomes the name of the game for a
small business, extraordinary efforts may be needed to bring it safely
through its difficulties. This well-timed, practical guide by an
experienced small business adviser presents proven techniques for
sustaining and increasing cash flows while keeping the creditors at bay.
A simple formula for break-even analysis helps the owner assess the
viability of the business realistically. As the cash flows, and
collections that are the lifeblood of the business require special care
when money is tight, the advice in these areas includes sample forms for
keeping track of the details. If more capital is needed for operations,
restructuring, or a new initiative, suggested sources are banks,
government agencies, private investor networks, and business associates.
A sample proposal for bank financing is included, as well as a listing
of government offices providing assistance to small business in every
province. Recommended venture capital networks are located in Ontario
and Alberta. Ultimately some businesses will fail despite all efforts to
save them. A prudent owner will prepare for this eventuality by taking
steps to minimize his or her losses. Options include the General
Security Agreement, a sample of which is included by way of
illustration. Although a number of the techniques described in this
self-help guide might be considered desperate measures, many are
practical, expense-saving, risk-avoiding strategies that could be used
equally well in happier times to increase profitability.