Insights into Small Business Financial Management Survey
Explore key insights from a survey conducted on small businesses in Alberta regarding financial management practices. The survey delves into methodology, key findings, and challenges faced by businesses in managing their finances effectively. Discover how businesses handle cash flow, budgeting, staff management, and forecasting to navigate through financial uncertainties.
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Presentation Transcript
Methodology Qualifying Businesses < 500 employees <$20 million annual revenues Must be financial decision makers or influencers Excluded agriculture, government, financial institutions, media, market research, PR, advertising and communications sectors Field dates: Mar 19 - Apr 1, 2014 Alberta SME s Telephone Over 3,000 businesses contacts made and 300 completed the survey An oversample of 100 female entrepreneurs were added for all gender comparisons Margin of error is +/- 5.8% 4
Key Insights 1 2 3 5
95% 89% +2 +5 96% MALE 88% MALE will be better off or the same will be better off or the same 94% FEMALE 91% FEMALE 7
Accounts Receivables being paid on time 24% Access/ availability of cash flow 19% Increasing sales/ client acquisition 12% Timely & organized financial administration 7% Government bureaucracy (ex, taxes) 7% Vice President, Retail Trade, 38 years in business, 20-50 employees, $3M to $5M in revenues. Seasonal nature of the business 6% Rising overhead costs 6% Banking (securing credit/loans) 5% 9 216; DKs removed); responses mentioned by 5% or more are shown.
HOW DO YOU MANAGE THROUGH IT? Budget during busy season to manage low season 52% Use savings/ cash reserves 15% Layoffs/ cut staffing 11% Keep overhead costs low 10% Offer more promotions/ incentives/ advertising 6% Line of credit 4% Use slow period to plan ahead for busy season 3% Nothing 6% 10 190 ); responses mentioned by 3% or more are shown.
OVER WHAT TIME PERIOD DO YOU FORECAST YOUR CASH FLOWS? 1 month or less 22% 3 months (1 quarter) 19% 6 months 8% 12 months 40% Other 11% ). 11
Weekly/ bi-monthly (2x per month) 9% Monthly 25% Quarterly/ semi-annually (2x per year) 31% Annually 22% Other 13% ). 12
Basic accounting software (eg, QuickBooks/ Simply Accounting) 48% Excel spreadsheets 25% Custom in-house software 19% Other 8% ). 13
91% of the cash flow forecasts are being done in-house (versus 9% who use outside help). 14 ); responses mentioned by 4% or more are shown.
15 ); responses mentioned by 4% or more are shown.
Daily/ several times per week 42% Weekly/ several times per month 29% Monthly 23% Quarterly or less frequently 6% ). 16
FEMALE MALE 18
FEMALE MALE 19
FEMALE MALE 20
DEMOGRAPHICS 21
10% 18% < $250k $250-500k 19% 13% $500k-<$1MM 8% $1-<$3MM 0 to 4 'Micro' $3-<$10MM 5 to 49 'Small' 45% 22% $10MM+ 19% 50 to 499 'Med' 46% 89% of revenues comes from within Alberta; 7% from other parts of Canada; 2% from the US; and 2% Internationally (outside Canada/US). 26
