Consumer confidence is a good index to gauge the health of an economy. If people feel confident enough to spend money instead of save it, they will help generate domestic demand for goods and services.
But what about commercial confidence? Despite the current provincial economic situation, now might be a good time to consider starting or expanding a business for several reasons.
One reason to consider investing now is that interest rates are at historic lows. This means the cost to borrow money has never been cheaper. The central bank has kept interest rates purposely low to help generate confidence to borrow and therefore invest (as either a consumer or a commercial investor). Although consumer confidence in Alberta is weak since unemployment is high, with interest rates being so low any commercial business with a smart plan and sufficient financing should be able to use this time to build a brand and weather the storm. Those businesses that can survive — or even thrive — despite an economic downturn are those businesses that will see rapid growth when the economy is strong. Consider the economic downturn a practice in leanness and forced efficiency, which ultimately contributes to productivity increases and improved profits.
A second reason to invest in a business now is that it's currently a buyer's market for real estate. Leverage lies with the buyer or lessee in negotiating a good deal for commercial real estate. Although Sundre is weathering the storm fairly well with a relatively low commercial vacancy rate, there are about 10 commercial vacancies across town available to be negotiated. Contact my department for information on how to reach out to commercial building or landowners to secure space for your business or development.
A third reason relates to Sundre's unique position. Due to our quality of living, regional natural amenities, the seven million vehicles that travel along Highway 27 through town per year as well as Canada's low dollar, there are great opportunities that lie in the following: tourism, health services, biomass conversion, and forestry service companies. When the economy booms again, Sundre will also be well positioned to support transportation and logistics due to the availability of land in the South West Industrial Area near the intersection of two heavy-load highways (22 and 27).
Therefore, considering the abundant opportunity identified above, you should take the opportunity to start a business to keep money local, and to create a job for yourself and be independent.
The following are a few steps to consider when starting a business: 1. Dream big — what is your big hairy idea, think beyond just the local market. 2. Take the time to learn regulations. 3. Put one foot in front of the other and don't be afraid to ask for help or guidance. 4. Discuss opportunities with potential service partners or suppliers. 5. Be sure to determine potential demand by doing market research via surveys and research into your competition. 6. Put all this info into a business plan, which will help to flesh out your idea even further to make it better (for help developing a plan, contact Community Futures Central Alberta). 7. Register your business, get a GST number, and then get a business licence. 8. Come up with a solid brand — what do you want your business's identity to be to appeal to modern consumers? Hire a professional creative designer for a logo and marketing material, and build a great website to get off on the right foot. 9. Market yourself both online and elsewhere.
When starting a business, be sure to take a holistic view about quality, creativity, and brand development. Think about the term “TQM” — which stands for “Total Quality Management.” Use TQM when you think about the quality of your customer service, product quality and operational excellence.
In developing a business, be sure to be creative. What sets you apart? What's your differential advantage? Your creativity and quality will contribute to developing your brand identity. Your brand refers to the identity and feelings that are evoked when your customers or clients think about your business.
If you're interested in starting a business, contact the Town of Sundre's department of economic development by calling 403-638-3551 and we will be glad to help guide you along the road to independence.
— Jonathan Allan is the Town of Sundre's economic development officer.
