Business Diagnostics Blog

Local and national small businesses will drive Canada’s economic turnaround and create new jobs. According to a December 2009 Scotia Capital report, companies with less than 100 employees have been less likely to lay-off workers during the recession than larger firms. This will mean those smaller firms that have retained and retrenched staff will be more likely to prosper early in the recovery.

Small firms are disproportionately represented in the construction trades and services, health care, environmental services, information technology and management consulting sectors. Accounting for almost 70 per cent of paid employment in these sectors, these areas expected to recover faster than others.

However, commentators such as Alfie Morgan, a retired University of Windsor business professor who for more than two decades has championed small business interests at the local chamber of commerce, says the lack of consumer confidence has caused lenders to be extremely cautious, unwilling to take chances on sectors dominated by small enterprise.

This why it is crucial for all small business owners to have contingencies in place and a firm understanding and appreciation of their business’s capabilities, value and potential. When the time comes to expand operations to meet changing market conditions and growing demands, they should have all their financing needs and plans in-place.
“Business owners have to get their houses in order,” says Mike Thompson, co-author of Business Diagnostics. “Many small and medium sized business owners will soon be faced with hiring and investing to meet growing market demand. To prepare, they should be performing an internal and external Business Diagnostic ‘size-up.’”

Within Business Diagnostics, business owners are provided a step-by-step process on how to size-up their internal business operation. Owners are instructed on how to assess their business’ relative strengths and weaknesses.
The internal size-up drills down into the company’s performance, evaluating its relative health from different viewpoints – financial, marketing, operations, human resources, and technology. Meanwhile, Business Diagnostic’s external size-up examines the business environment (political, economic, societal and technological factors) along with prevailing industry conditions.