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SEO tips for your small business

2012-01-26T12:53:00.001-05:00

As Google has changed how people access and consume information, so must small businesses if they want to compete effectively. The goal of Search Engine Optimization (SEO) is to drive traffic to your website and therefore increase sales. It has become such an important of marketing that you can’t really ignore it and expect to be successful in business.

Here are some tips that can help your site get better optimized so that you can increase your sales.

· Picking the right keywords: One of the most important components of SEO is selecting the right keywords as optimizing for the wrong keyword will be leaving money on the table. You want to make sure that you pick keywords that have high traffic but are not competitive. Pick the keywords that people might type in the search engine, usually they would be two to four words.

· Use short and keyword- targeted titles: Make sure that your title tag is descriptive and reflects the keywords and content of the particular page. Your title shouldn’t be too long, up to 10 words, and should also include your business name or website.

· Detailed meta description tags: While ‘Meta Keyword’ tags are a topic of debate in the SEO world, what has remained is the frequent use of something called a “Meta Description” tag. This tag should contain an overview of what the visitor will experience on your specific page. This tag should be no longer than a couple of sentences. Omitting the “Meta Description” tag will result in the search engine quoting unintended parts of the page in the search engine results page.

· Use search engine friendly URLs and domains: When you purchase a domain, make sure that you purchase a domain with keywords that your clients will type in the search engine. By matching the domain name to the search phrase, you have a higher probability of gaining more visibility.

· Content freshness & age: The reason search engines exist is to provide you with great information. If your site doesn’t have fresh content on a frequent basis, they will bypass you in favour of a site that does have recent and relevant content. When you publish unique and interesting content on a regular basis, you get noticed by the search engines, who will place you

· Obtaining backlinks: The more links you get from other high rank websites, the better it affects your SEO ranking. A way to get backlinks is to provide great content and have people share it. The only reason people will want to link with you is because you have something great to offer. Don’t just link only to the homepage, but also make sure that you can get links to other pages on your website if they are relevant.

· Social media content and sharing: Recently, Google has changed some parts of its algorithm, called the Panda Update. One change that was supposed to help in search rankings was how many times people share a webpage or website through social media. Now, to get people to share, you must provide great content to be shared. Also, have your customers post reviews on major sites like Yelp, Zagat, Facebook and link back to your website.

What Google’s Acquisition of Zagat Means for Your Small Business

2012-01-24T12:50:00.000-05:00

For months, Google has been telling everyone that local is going to be huge. With that in mind, Google purchased Zagat (a local restaurant review and group deals site) in September 2011. The acquisition helps Google provide some trusted review content and deals for their search users in their local region. By integrating Zagat content into Google search results, they offer a better experience for users, including a great offline presence that they can build off of. But, what does this acquisition mean for your business?

Local marketing is the new space

One thing that Google has noticed is that consumers are looking for search results that are related to their region. So, instead of providing general search results that are not relevant, it’s providing more results related to the city you live in (for example: “electricians in Toronto”).

This has created a need for small businesses to optimize their website for local searches, targeting prospects for specific keywords related to their expertise and location. With the Google Panda update, search results have become more accurate, where businesses can target their prospects more accurately making SEO extremely important.

Local reviews have become key to building credibility

Zagat offers small businesses the opportunity to build their credibility through customer reviews. Simply put, the more reviews a business obtains, the higher in the search results that it ranks, resulting in higher visibility.

With more importance being put in a customer review, small businesses must account for integrating reviews as part of their online search strategy. So what should businesses do to take advantage of the newer local marketing trend? They can do the following:

· Integrate Google Places page as part of their marketing strategy: Make sure that you’re listed in Google Places, and are optimized with the proper keywords.

· Create a customer review strategy: With the mix of social media and search, businesses must now be hyper-aware of customer reviews in all spots from social media sites to directories. Your strategy must include how to deal with negative reviews.

Is mobile the new battleground?

The acquisition of Zagat has provided a Google a way to provide much deeper results for their Google Places, making them more competitive and providing a better user experience for both business clients and users.

Most importantly, it has allowed Google to provide a great value for mobile search users through its Android apps and integrate Zagat / Google Places results into Google Map results. The best place for these results would be in mobile search. After all, when you search for a restaurant, don’t you always Google it on your phone before making a choice?

How content can help with Social Media ROI

2012-01-19T13:34:00.000-05:00

Social media marketing is maturing quickly – it used to be that you measured the effectiveness of a campaign through the number of followers that you signed up. Now, social media metrics have become complex and there is an expectation that every campaign must have a clear ROI. And like any marketing campaign, success is determined by how much it affects sales revenue.

As with any online marketing campaign, one of the most important components in driving ROI is the amount of high quality content that you create for your target audience. By mixing content with social media, you have the perfect recipe for building brand and be recognized as a thought leader.

Why content marketing can work with social media

With more choices in accessing media and related content, your target audience are more selective on what content they consume and how they view it. They are seeking out information, and asking their friends for referrals. They are also less trusting of information coming directly from the brands themselves.

With this in mind, more and more companies are creating content as part of their inbound marketing strategy to attract the attention of their clients, avoiding the use of interruption marketing and advertising. By putting content as central to their marketing strategy, they are creating a funnel that pulls prospects in.

Content is more effective online when you add social media and online marketing. You get a powerful combination which:

· Can be used to provide content for all your social media channels and drive interaction.

· Can be used for the soft sell – grabbing the readers’ attention without using a sales pitch because what you provide is relevant and meets their information needs.

· Allows for closed-loop tracking, where you can draw people into your website from social media channels and determine whether your ROI has improved. A good way to lure your customers is through great content that they want to view.

As you are well aware, social media sites and networks have access to an incredible amount of data on the type of content and interests that people like to share with their friends – in real-time. With about billions of pieces of content being shared on Facebook and Twitter, it’s no wonder that search engines are starting to take notice. Google has started tracking, in their Panda update, the amount of shares that people do for a particular web page or content.

They’ve also added Twitter feeds and Google+ feeds in search results. Metrics such as retweets, shares, likes and others are being tracked in determining whether a piece of content is quality or not worth sharing. As people are expecting more from Google, Bing and Yahoo to provide quality results, these search engines are taking advantage of the real-time data from social media to provide relevant results.

The end result? Marketing managers and business owners have to create content that their customers will love and share.

Overview of the Canada Not-For-Profit Corporations Act

2012-01-18T12:41:00.000-05:00

Recently, a new law called the Canada Not-For-Profit Corporations Act ("CNPCA") came into effect aimed at eliminating unnecessary regulation and providing flexibility to the not-for-profit sector. The new legislation modernizes the corporate governance of not-for-profit corporations by promoting accountability, transparency and efficiency.

The Act in its entirety is lengthy and detailed so not-for-profits will have up to 3 years to transition into compliance. Below is a list of some of the Act’s more important provisions that may affect you and your not-for-profit.

Incorporation:

The process of incorporation has become more streamlined under the new Act making it faster and more efficient. Instead of submitting the letters patent and by-laws for review, incorporations now occur “as of right” upon submission of the signed articles of incorporation.

By-laws:

Before the Act was implemented Industry Canada required incorporating not-for-profits to prepare and submit by-laws governing corporate matters to be reviewed and approved at the time of incorporation. Under the new legislation it is no longer necessary to draft and submit by-laws with the application for articles of incorporation. The new Act requires by-laws that deal with member issues only.

Members:

Members’ rights are enhanced under the new Act. The new rights include: the right to submit a notice of proposal to request said proposal to be discussed during a members meeting; the right to request a meeting at any time; the right for non-voting members to vote separately from voting members on matters that impact membership rights; and the right to access corporate records to monitor board compliance.

Directors:

A director’s liability and standard of care are protected by the “due diligence” defence as understood in the common law duty of acting in honest and good faith. In this legislation specific liabilities are given to directors concerning payment and distribution to members, debt obligations, and wages payable to employees. However, directors who meet the standard of care are protected from liabilities through the “due diligence” defence under the new Act.

Financial Accountability:

The Act divides not-for-profit corporations into soliciting and non-soliciting corporations, which are subject to different regulations depending on which category your not-for-profit falls under. Your gross revenues are also dependent upon the rules and requirements for reporting under the new legislation.

To facilitate the change, Industry Canada will not charge initial filing fees related to transitioning from the CCA to the NFP Act. To view the Act in its entirety, please click here.

Providing great customer service

2012-01-17T11:43:00.004-05:00

Everyone knows that loyal customers are profitable customers. They purchase more frequently, buy a broader range of products and talk about your company to others as much as possible. It’s important that you take care of them as the more you do and show how much you appreciate their business, the more your clients will keep coming back. As a company, providing great customer service should be a priority at all times. Here are some tips that will help you provide the best customer service you can.

Fast service, faster communications.

Remember to communicate everything to your client quickly. Reply to your clients’ communications as quickly as you can, as not acknowledging an email or voice mail is merely going to create more frustration. Always be considerate of their needs by acknowledging their request or communications. You may not be able to complete a task or a request immediately, however you can always let them know that you received their message and provide a new schedule. Manage your client expectations by communicating your customer service communications policy i.e. when they should expect a response from you.

Keep clients updated.

Always let your clients know where you are in a project or in a product repair. Not knowing where they stand or what the status of a project is not a great feeling to have. Make regular reports to your customers and let them be aware of how things are progressing. Are you facing any issues or challenges? Or is everything on track? Even if you’re experiencing any trouble, do not hesitate to let them know immediately and propose a solution to solve the problem. It shows that you’re keeping them in the loop and that you have things under control. Communicating any issues right away helps your client plan for contingencies.

Fix your mistakes.

If you did something that didn’t end up working, you should repair it as soon as possible. An easy way to lose a client forever is not admitting that you are at fault and not fixing your own mistakes. When you don’t take responsibility for your own faults, it is a quick way of getting a bad reputation.

Go beyond the call of duty.

There is a maxim that you should always over-deliver and under-promise. Not only will this result in a happy client, you will always be in top of mind as someone who can get things done. Surprise your customers in not only delivering it ahead of time but providing an extra discount! Offer value – replace their product while it’s being fixed or pay for the shipping to pick up their broken item from their home. You are not limited in how you can provide great value as long as you make it easy for the customer to do business with you.

Listen. Listen. Listen.

In all communications, the most important part of it is listening. If you’re not listening to what the client is saying, you are setting the stage for future frustrations. When a client is being very vague, don’t be afraid to ask them to clarify. Try to read between the lines - by understanding what they are really saying, you can offer suggestions on the best way to go about fulfilling those needs.

Remember that providing great customer service is knowing how you would want to be treated if you’re faced with the same situation. No matter what kind of business you have, if it is customer based then maintaining quality customer service is the key to a success and profitability.

Low cost online marketing tactics to drive awareness for your small business

2012-01-12T12:33:00.000-05:00

Marketing can be expensive, however, you don’t need a six-figure budget to drive results. Here are some great tactics you can put into action that will help you build buzz and drive traffic back to your website. While these ideas are not expensive, they will definitely take a bit of time and effort to master.

1) Blog commenting: This is a simple and effective way to drive traffic back to your website or blog. Blogging is a social activity, a two-way conversation between the writer and their readers so if you join the conversation you must add value to it. By posting insightful comments on other blogs, you not only build relationships with the bloggers but also with their readers. Remember to only comment on blogs that are related to your industry or targets your market demographics.

2) Posting in message boards: Although they may have been around since the beginning of the internet and are relatively unchanged, they are still extremely effective for driving traffic and building awareness. There are thousands of message boards around the internet for almost every topic. By joining and participating in their discussions and consistently offering great advice, you will be considered as an expert and drive traffic to your website.

3) Search Engine Optimization: Search Engine Optimization has become one of the most important marketing tactics that you could use to drive traffic and awareness to your business. With millions of people using Google and other search engines every day, why shouldn’t you target your website to them? By ranking higher in the search engines, you have the opportunity to drive thousands of visitors every day to buy your services and products.

4) Create a blog: Regardless of what you sell online, you must have a blog. The benefits of writing a blog goes beyond building a relationship with your prospects and customers, it can also help your site’s organic SEO ranking. Because Google ranks websites higher that post frequent content that people link to, having a blog makes great sense for your company. By posting great content, stuff that people can’t find anywhere else, you are positioning yourself as a resource that people go to for information. Make sure that you share your content through social media sites such as Digg, StumbleUpon, Facebook and Twitter. For many websites, a blog accounts for a large portion of their monthly traffic. By converting that traffic into leads, you can have your sales team follow up and make them customers.

5) Build your social media presence: You should be taking the opportunity to have a company profile or page on social media sites such as Facebook, Twitter and Google+. They will be good areas to get new clients that you normally wouldn’t get. And the best part is that it won’t cost you anything except the time it takes to maintain your profiles. Don’t forget that people are on your pages because you provide content that they can’t find on their own. You build up your profile when you share and participate in the social web.

6) Be a guest poster: Another great way to get some awareness and traffic is to write guest posts on other blogs within your industry. With thousands of blogs found on the web, you will be able to find a few popular blogs that you can write for. And the common thing that all these blogs want is more content. By writing guest posts, you will not only get organic traffic but, even more valuable, backlinks that can help you with your Search Engine Optimization campaign.

7) Video marketing or YouTube: Now that they appear in search results, videos have become a great way to market your service or company. You can optimize them to appear higher in the rankings and create great videos to show clients how good your products and services are. Remember, people go to YouTube to either learn or be entertained.

8) Get interviewed: Getting publicity from major news outlets is hard, however, you can still get publicity from blogs and smaller online newspapers. Contact various bloggers and give them a reason as to why they should interview you. Mention your company’s achievements or why their readers will find you awesome. If they say yes, they will most likely email you some questions and post your response.

There are many ways that you can generate awareness and branding without having to spend money, it just requires some creativity and effort. There are many examples of companies achieving greatness through using low-cost marketing tactics and competing effectively against their competitors. If they can do it, so can you. Just be aware that you must be willing to put in time and energy to get results.

Small Business Tips for 2012

2012-01-11T11:36:00.000-05:00

With 2012 finally here, it’s time to start preparing your goals. Now that the economy is slowly picking up, and consumers are getting their confidence back, now's the time to bring your company to the next level. Here are some things that you can focus on to get ready for 2012.

Review what has worked for you last year.

Always review what you’ve done the last year that has worked or failed. If you don’t, you’ll be doomed to repeat your past mistakes. Consider any marketing campaign that didn’t pan out the way you wanted. What could you have done better? Provide a better offer? Or target the right market? Or was it the timing?

Update your sales and marketing plan.

The most important part of any business is your sales. Keep track of how many sales you expect in each quarter and outline what actions you are taking to achieve those targets. You need to keep your sales pipeline full with prospects and have an action plan to convert them into customers.

The plan doesn’t have to be a huge document – just enough to outline your current situation: Your current sales revenue and income, how many new clients you have and repeats, profit margins, expenses and others. Then write down your goals for where you’d like to be this year. And finally, outline three strategies that you will use to achieve your sales goals for this year. Create a step-by-step list on what you need to do to execute each strategy.

Update your website and online marketing strategy.

One of the most effective marketing that you can do as a small business is through the web, and if you’re not focusing on creating an online marketing plan, you are leaving a large amount of money on the table. Of course, you need to do more than just create a website – learn how to promote it and understand how it will allow prospects to become your customers.

Create a board of advisors or mentor team.

Creating a mentor or advisory team is one of the best steps you can take for your business growth. By working with the right mentor, you can avoid mistakes that will slow your business and cut your learning curve tremendously. Your team can help you open doors that would have been otherwise closed if you did it on your own.

Throughout all of this, don’t forget to relax! As an entrepreneur, you are working 24/7. If you don’t schedule some downtime, you will eventually burn out. Take the time to do an activity that is not related to your work and stay fit. The end result being, you’ll be fresh and happy to face your business challenges every day.

2012-01-10T10:18:00.000-05:00

In the fall we asked our clients to tell us their business' story and how CorporationCentre.ca helped them start up. Hundreds of entrepreneurs answered our request! We narrowed the group down and went on location last month to film our small business clients, showcasing their businesses and their use of CorporationCentre.ca services.

Here's a shot of the green screen set up before we started filming.

Stay tuned for the videos coming soon!

Why people become entrepreneurs

2011-12-14T12:09:00.001-05:00

You’re frustrated, tired and stressed. You’ve realized that your boss is only interested in squeezing more work out of you and that your career prospects in the company are almost nil. You have always dreamed about making it on your own and taking control of your destiny – your own success and failure.

You’re not alone! There are thousands of others who have decided to take the plunge towards entrepreneurship, and in these times of uncertainty more and more people have also decided to take matters in their own hands.

Here are a few more reasons why people decide to become business owners:

1. Becoming financially independent

Although a majority of new businesses fail within the first three years, those that succeed can become very profitable. Starting your business is the first step towards gaining financial independence and achieving the security that you want. Being an entrepreneur allows you to get an income stream that is dependent on your efforts and not on the whims of others.

2. Better career prospects

Sometimes people become frustrated as they feel that their career path is not going the way they want. By starting their own business they’ve decided to take control of their personal and career goals. Alternatively, sometimes entrepreneurs see a better way of doing things in their industry and act on it, providing much needed innovation that is lacking.

3. Looking for personal achievement

There are those who are interested in setting big challenges and striving towards it. These entrepreneurs are goal-oriented and gain satisfaction from accomplishing big things. This is a common trait amongst many entrepreneurs – especially motivated by risking everything on their ideas and overcoming big challenges.

4. Pursuing their own ideas

Certain people see opportunities in areas that are often missed by others -entrepreneurs can see new markets, create new products or improve upon a service. Whatever the reason is, the opportunity to innovate and create is what drives them. Their satisfaction comes from the successful creation of a business and validation of their ideas by the market.

Even though entrepreneurs work more hours, have higher stress and sometimes lower pay than non-entrepreneurs, many have a greater feeling of satisfaction in their work. There are many reasons for starting a business, but a true entrepreneur is someone who gets excited by setting big challenges and works towards overcoming them. Also, the act of building a lasting company is a validation of their ideas, and they gain a deep sense of pride from its successful implementation. So if you’re ready to jump in to the chaotic world of entrepreneurship, know that you’re part of the few that are willing to take charge of their destiny.

Awesome gifts for the entrepreneur on the go!

2011-12-13T12:40:00.000-05:00

With the holidays around the corner, it’s time to do some late Christmas shopping. Trying to come up with the right gift for the entrepreneur in your life is difficult as their needs are more practical. Take a look at the list below to help you choose something that your favourite tycoon can appreciate.

A solar-powered electric gadget charger: This is an excellent gift for someone who carries a lot of gadgets – (i.e. iPhone, camera, tablet). So, instead of carrying multiple bulky chargers to charge them while travelling, you can just take one. And it’s all powered by the sun!

The GPS navigator: A great gift for the frequent traveller! They will never get lost on their way to the important business meeting and the best ones can be used for many countries. You should be able to find a good one in electronic retail stores.

Bluetooth headset: With many cities banning talking in cell phones while driving, it makes sense to use a hands-free headset so you can speak on your cellphone while in the car. Not only is it safe, they also look cool. If your favourite entrepreneur lives in their car, make sure they stay safe with this headset.

Smartphones: Regardless if you choose an iPhone, a Samsung, or Blackberry – a smartphone is a great tool for the entrepreneur on the go! They can respond to emails, store files and access the internet while still talking on the phone...This multi-purpose tool is perfect for someone who needs to keep in touch with their business while travelling.

Personal assistant service: A small business owner rarely has any free time between managing their business, making sales calls, dealing with client issues and overseeing employees. It’s no surprise that many of them do not have time to manage their personal affairs such as picking up the dry cleaning, cleaning their house, or groceries... By getting them a personal assistant or concierge you help them with the most valuable commodity – time. With the free time, they can focus on their business.

iPad: One of the most groundbreaking technological gadgets made, Apple has created this for both the business and regular user. Light, powerful and filled with features that the most jaded technologist would love, it’s a great alternative to lugging a heavy laptop. And its compact shape makes it perfect to be used for client presentations and poring over the reports at night in your hotel room.

Setting goals for the new entrepreneur

2011-12-08T11:49:00.000-05:00

Setting goals is very important for a business – especially a new one. As an entrepreneur you have so many fires to put out that it’s easy to get lost in the wrong things. By setting long term, quarterly and daily goals, it can help you focus on the priorities that will help your company grow. Your goals set your priorities and serve as a tool to measure your company’s progress .

Setting corporate goals require everyone’s input and should be communicated clearly to everyone. It provides your employees a benchmark to evaluate whether they’re on track and moving forward towards business growth. Without a measurement of progress, it can be difficult to determine what needs to be changed or improved upon.

To set goals for your company and yourself, here are some tips to follow:

1. Create long term goals and break them down.

As an entrepreneur, you need to provide the company vision and to do that is through providing long-term goals. Start by listing your long term goals and then work backwards by breaking these down into more manageable quarterly, monthly and weekly targets. Do you want to make $500,000 in one year? Then break your annual goal into quarterly objectives – $125,000 every 3 months. You should then break this down even further into monthly and daily goals.

2. Goals must be specific and measurable with a clear timeframe.

Like everything in business – you must be able to measure progress. Determine what metrics will be needed to see if you’re on track. For example, to achieve an increase in sales revenue, you must have your sales team make 200 calls/day, send out 7 quotes a day with 2 hours talk time.

3. Your goals should be achievable and realistic.

Make sure that the goals you create for yourself are attainable. Don’t aim so high that you don’t believe that you will achieve them. For example, if your company has never reached a target of $100,000, then setting a goal for a million dollars in revenue will not be believable. You must feel that you and your employees have the knowledge, skill set, and resources to successfully get there.

4. Review your goals regularly.

Make sure that your goals are communicated to all your employees and that they understand how to accomplish them. At the end of each month, review your annual goals to see if you’re on track or if you’ve lost your focus. Do not be afraid to change your goals if you find that they are not achieving your aims.

By defining your goals, it will help both you and your employees to work towards a shared outcome as well as manage expectations. Without these goals, employees may feel lost and lose their focus. Setting goals is like creating a roadmap for your business to progressively grow... Each step you take should be towards the success of your business.

The 3 challenges for a start-up

2011-11-30T14:10:00.001-05:00

For many entrepreneurs, starting and growing a business is an exciting adventure – until you come across almost insurmountable obstacles that can break up your company. After speaking with a few entrepreneurs, investors and executives, here are some of the challenges that business owners face when growing their companies.

Not having partners to help share the load

There have been very few successful companies that have been started by just one founder. And those that have succeeded always attracted a good team who were there from the beginning. Why can’t a single founder start a company? Many entrepreneurs say it’s because starting a company on your own is just too much for one person. With daily pressures and multiple areas that you are responsible for, there are not enough hours in the day to deal with them. Even if you could do all the work yourself, you would still need a team behind you to vet ideas, strategies and opportunities. By working with partners you will be able to share the workload and be able to bring the final product to market quicker.

But most importantly, having multiple founders allow the team to help support each other through the most challenging times. When going it alone, trying to manage the daily stress will be difficult. Having a team around you to lighten things or spread the load is immeasurably beneficial.

Losing focus and spreading yourself too thin

This can be a big problem for companies who want to do everything for everyone. If your start-up is growing quickly, it is common for many founders to start adding new markets, and expand too quickly through acquisitions. Don’t try to solve problems that are not part of your niche as this will pull you away from what brought your company success in the first place – your core market. What you should do is tightly define who your target is, focus on what you can offer them and create an action plan that solves their problems.

Not enough cash

Cash is king. You’ve heard this before from various people, however, in a business environment it speaks volumes. How much cash do you have until you hit your next milestone? If your company is an idea, then how much money does it require to create a product/service? If you already have a product, then how much cash does it take to launch? So when you set your financial goals, make sure that you’ve accounted for how much cash it would take to get to the next step. Without sufficient cash flow, any downturn can end your business before it has a chance to fly.

With proper planning and foresight, you’ll be able to overcome any of these challenges and be well on your way to success!

How cloud computing can help your business

2011-11-29T12:48:00.000-05:00

Technological advances have provided opportunities for small businesses that have previously been very expensive and only available to big companies with large IT departments. A great benefit for cloud services, which is any infrastructure, platform or software service that is Internet based, is that you can start your company with minimal upfront resources and can scale up as your business grows. For a business owner, cloud computing allows you to:

• save money,

• scale your business,

• increase your services

• and minimize risk.

This allows the entrepreneur to compete as a much larger company while still remaining small. Some of the benefits of cloud services for your small business go beyond just hosting your website and you will be able to take advantage of a myriad of services that allow you to run your business more efficiently. Some of these advantages are:

Price: One of the major advantages of using cloud services are savings in operating costs. You can reap the benefits of lower operating costs by not having any in-house IT infrastructure such as:

• expensive servers,

• networking equipment

• or even the need to hire IT staff.

In the past, businesses had to manage their own internal computing resources, which created huge overhead costs that were insurmountable barriers for small business owners. However, with cloud computing and the myriad of services that you can choose from such as:

• marketing automation,

• project management,

• accounting

• and CRM applications,

Business owners can now lower the upfront costs of running their businesses and provide great value for their customers.

Scalability: One of the benefits of cloud computing services is the ability to purchase services according to your business needs. Many cloud service providers offer a pay as you go pricing, allowing you to manage upfront costs. You only pay for what you need, and as your business grows so does your usage. There is also is the option to integrate their services with other platforms through open APIs.

Flexibility: Cloud services allow you to automate a lot of your operations, freeing you to focus on your business. You can try new business strategies with minimal risk quickly and see if it works. You will be able to work more efficiently and at a lower cost without having to be tied down to services that you don’t need.

For your small business to grow, you need to be able to scale quickly and at low cost. Cloud technology allows you to do that without the need to have an expensive in-house IT team or hardware. With cloud services, you can be more competitive against larger companies by being flexible, responsive and accessible.

Register your Canadian Trademark in the U.S.

2011-11-24T09:37:00.000-05:00

We may be in Canada, but nothing stops us from celebrating U.S. Thanksgiving!

Did you know that registering a trademark with the Canadian Trademarks Office protects the rights for that trademark in Canada only? That means that while your trademark is legally protected in Canada, there may be no legal limits to prevent a U.S. company from infringing on your trademark in the U.S.

Now you can protect your intellectual property in the United States by registering your Trademark in the United States with CorporationCentre.ca. On November 24th and 25th CorporationCentre.ca will be offering $100 off all U.S. Trademark application filings. Simply enter the Promo Code CCUSTMTNX2011 in your shopping cart.

CorporationCentre.ca has established a strong relationship with a U.S. Trademark Agent, providing you with the same quick and personal customer service experience, while maintaining compliance with all United States Trademark requirements.*

Click here for more information and to place your order. If you have any questions or need help with your order, please call 1-866-906-2677.

*CorporationCentre.ca cannot guarantee that your Trademark Application will be approved. Please note that CorporationCentre.ca does not provide legal advice to clients.

How to get publicity for your small business

2011-11-22T11:43:00.000-05:00

As a small business getting publicity is difficult when you don’t have the big budgets and resources of your larger competitors. So what do you do to get that PR buzz and that word-of-mouth that drives traffic? Here are some steps you must take to get the buzz:

Make sure you have something to talk about

Even though you think that your company, product or service is the best out there, what’s important is the perception of your clients and media. You have to make sure that the media perceives your product or service to be so unique that it stands out from the crowd.

Journalists are always looking for something new or a unique angle to a story that hasn’t been covered before. Here are some ways that you can get journalists to cover your company:

• You have just launched a unique, breakthrough product or service that isn’t found anywhere else. This product stands out because it kicks ass and you’re so proud of it that you’ll give any reporter a free product for them to try for their story.

• You can tie your product or service into the latest news trend of the day. Try to tie in your product to trends such as organic or environmentally friendly issues. Or link it to highly political situations... So whenever you notice a trend coming up, figure out how does your company fit in with it?

Pitch your story to the right person

Do your research before you start sending our press releases. Find out what the editorial calendar is for a particular publication. Determine which topics are going to be covered in the next few issues and tailor your pitch towards their schedule. Find out which reporter or editor is responsible for your industry and approach them only. You should also approach media that cover only your industry, product or business.

Some ways to find the right contact in a media outlet are:

• Read their masthead

• Do a search on their website

• Contact the media outlet by phone

When you pitch the reporter, add reasons as to why your business should be covered by the media outlet.

Follow up afterwards

Just like sales, you must consistently follow up with your contacts. If they have expressed an interest in covering you, make sure that you keep in touch with them and provide them with as much information they need. Send them a thank you note once you’ve received media coverage. The more organized and responsive you are to a reporter’s needs; you’ll be favoured with a higher chance of getting a story published.

The Benefits of CRM Software

2011-11-10T12:10:00.000-05:00

Having customer relationship management (CRM) software offers you a lot of advantages in running your business. As a small business, you need to take advantage of every tool that will help you deliver great service to your customers and using a CRM can provide that. Choose your CRM software wisely, however with the right choice, you will be able to jumpstart your business’s ability to maintain long term relationships and eventually drive sales. Some of the benefits of having a CRM are:

1. Creating a customer database: A CRM will allow you to create an in-depth database of your customer. You will be able to track everything from their purchasing habits to their personal interests. It will allow you to predict when the customer is ready to buy and being able to personalize any contact with them.

2. Automating marketing tasks: You can automate many of your marketing tasks such as reminders, documentation or email newsletters, saving you time and effort. It also allows you to keep all your marketing communication templates in a central place and use them to send to clients during any transaction. And finally, you can keep track of your marketing campaigns, evaluating their effectiveness and also measuring long term customer value.

3. Make strategic decisions quickly: You will be able to access data and make strategic decisions without wasting time. CRMs allow you to build dashboards that give you a snapshot of where your business is at any point of time.

4. Strengthen your customer relationships: A CRM allows you to communicate with your customer at all times, choosing the right message to send at the right time. By improving your customer communications, you strengthen your relationship with them and increase customer retention. A big advantage for CRMs is the ability to create personalized communications with thousands of your customers more efficiently.

5. Customer service operations are more efficient: Your customer service functions will improve as you can provide better service. You will also be able to keep track of any customer service issues and follow-up without losing track of where you are. With a CRM, sales, marketing and customer service can now be integrated as each department would be able to obtain a deeper picture on a client, thereby targeting and servicing a client according to their needs.

A CRM allows you to keep track of your customer data throughout the entire purchasing lifecycle. This gives you a great snapshot of what is happening in your company in real-time, helping you make the best strategic decisions quickly and profitably.

Prepare your Shareholders Agreement

2011-11-09T09:40:00.000-05:00

Protect the future of your corporation with a Shareholders Agreement*

One of the first steps after forming your corporation is to decide how your business will be operated and managed. For corporations that have 2 or more shareholders, ground rules should be laid out from the start to ensure that your business maintains good corporate governance. These rules are generally set with a Shareholders Agreement.

So, from November 9th to the 11th CorporationCentre.ca is reducing the price of our Shareholders Agreement from $99 to $50 for our valued customers.

Visit our Contracts Page from 9 am on November 9th to 5 pm on November 11th to get your Shareholders Agreement for only $50. The agreement is prepared through our online Easy Contracts system, which builds the document based on the information entered by you. It’s quick, easy and all online!

Click here for a detailed checklist of the information you’ll need to prepare your Shareholders Agreement. Make sure you have all the necessary information to complete the agreement before you begin.

If you have any questions please feel free to call us at 1-866-906-2677, we’d be happy to help.

* Please note that the Shareholders Agreement provided through our system is not intended to replace the services an attorney who can review your particular circumstances and advise you accordingly. We are not a law firm and do not offer legal advice or legal services. This Shareholder Agreement should not be taken to be appropriate for all circumstances. Please note that this Shareholder Agreement cannot replace a lawyer or their advice, particularly in complex or intricate situations or where opposing interests may exist. Contracts are in English only.

How an accountant adds value to your small business

2011-11-08T11:06:00.000-05:00

Many business owners see an accountant as someone who keeps track of accounts payables and receivables, and makes sure that the business taxes are paid. However, a good accountant can be so much more. They are like a business partner, where they help your business become more financially efficient and take advantage of tax laws.

An experienced accountant is very valuable as they can help you make the right business decisions by providing strategic and financial advice while reducing your risk for your company. An accountant can be someone who wears many hats for your business, such as:

Business analyst: An accountant is trained to identify specific business challenges and provide solutions. By understanding your business and industry they become valuable as they can provide you with advice on the best financial strategy to take. They will help you create accurate financial information which will help you in analyzing your business performance. You can also assess what you have achieved as well as provide accurate forecasting for future growth.

Financial operations: An important part of an accountant’s job is to set up an accounting system including providing you with financial analysis and data. But, most importantly, your accountant can provide you with financial advice that can help you manage your business better - such as budgeting and cash flow forecasting.

Tax advisor: No matter how good you are with your company’s financial operations, there will be times when you will need the help of an expert. By taking advantage of an accountant you can be better prepared to deal with the complexities of small business taxation. They would be able to provide your business with advice and help restructure your business operations so that you can minimize your taxes and increase your profits.

A professional accountant adds tremendous value to your business through finding ways to:

• save money,

• lower your tax rate,

• increase profits

• and provide you with the financial information so that you can grow your business.

They can also help you analyze the numbers and use them to make more strategic decisions. Unfortunately, many small business owners fail to realize that working with an accountant is one of the most important business decisions that they should make - and not only during tax time.

How to hire a web designer

2011-11-03T14:56:00.000-04:00

Is your company about to design a new website or planning to revamp your existing one? Finding a web designer to do it can be a challenging process; with so many to choose from. However, before you start looking around for one, you should already have a detailed understanding of what your website will be like. Take the time to plan your requirements for the site including the business goals. Some other questions that you should ask are:

• Is your website going to be powered by a Content Management System (CMS) such as Wordpress, Drupal and Joomla?

• Do you have a site map ready?

• Do you know the style including branding, logos and colours that your website should look like?

• What is your project deadline?

• And finally, how much are you willing to spend on your website?

Once you have created your brief, you can then start choosing a designer. Here are some of the points that you should consider:

• Portfolio: A designer’s portfolio is the best way to gauge their experience and skills. Don’t be afraid to ask the tough questions about their work that is represented and make sure that it can be verified. Ask for client references and find out:

o what their professional relationship was like;

o was there open communication;

o was the project done on time and to satisfaction?

Also, choose the portfolio that has work similar in scope to your project. For example, if you’re looking for a Wordpress site, make sure that the designer you choose has done multiple Wordpress projects.

• Style: Each designer has their own creative eye. This creativity can be seen in their designs - see if they are flexible in all their work, or does their work show the same, repetitive style?

• Communication skills: For any project to be successful, there has to be clear communication channel both ways. Make sure that your requirements are understood clearly by the designer, and secondly, that the designer can communicate clearly any changes or problems that may occur during the course of the project. It’s better to over-communicate than make assumptions that could be wrong. There should be a process where both of you can easily update each other during the course of the project including having regular meetings. There also should be multiple ways to communicate with your designer, when reaching them is critical.

• Are they knowledgeable: A consultant should always tie their services to the needs of your business. They should spend the time in learning how your business works, what you offer, and what kind of clients you work with. With that knowledge, they can design a site that will reflect your business and not what they think it should be.

• How much does it cost? Get a full breakdown of the costs in creating your site. Features such as a blog, email newsletter system, ecommerce functionality and others should be listed in the quote including time taken, resources used and any sub-contractors hired. Understand their billing process – will they bill you monthly, or are payments based on milestones

Your website is essential to the marketing success of your business. By interviewing potential designers, you’re more likely to pick one that:

• Is skilled to do the type of work you want,

• Communicates and listens well,

• And is budget conscious.

By keeping these tips in mind when searching for a website designer, you should be on your way to starting a successful website.

Protecting your small business from hackers

2011-11-02T12:56:00.000-04:00

It’s not only the large corporations that are targeted by criminals, but also small businesses such as yours. This is because small businesses do not have the resources that they require to protect their IT infrastructure. Here are a few reasons why you should improve your IT security especially if you’re a small business:

• You need to protect your customer’s credit card information. There is even a greater risk of fraudulent activity as a majority of credit card transactions are online.

• Manage your brand reputation. By having the best IT security in place, you protect your business and customers and, most importantly, maintain your reputation as a secure place to do business.

• Protection from viruses /spyware. Another potential risk is viruses, which can create chaos on your business. Many viruses can shut down entire computer networks and even email systems. Once a virus has infected your computer, it will start sending emails to anyone listed in your address book, harming your reputation. This threat alone should be enough of an incentive to improve your IT security.

Once your infrastructure is compromised, the cost to purchase new software and hardware or even to manage crisis communications can be high. It doesn’t matter if the threat comes from an employee, a virus or a hacker, there are some easy ways to prevent and avoid these events. Here are some tips in protecting your company:

1. Get a reliable host service for your website and database. Make sure that they are reliable and have a good reputation. Ask for client testimonials when vetting vendors.

2. Verify that all your employees are using the current and up to date browsers. One of the easiest ways viruses and spyware can infect a computer is by exploiting weaknesses found in the browser.

3. Make sure that an anti-virus program is installed on all computers. This includes your servers. Keep the program current at all times.

4. Manage all your passwords at a single place using a password manager. And ask your employees to create passwords that are random. Do not use easily remembered passwords such as family names, pet names and such. Ask your employees to not keep the passwords where they are easily accessible.

5. Monitor internet usage. As employees could inadvertently come across malware or phishing sites allowing their computers to be hacked.

6. Protect your Wi-fi connection. Password protect your connection and make sure that your hardware is modern.

These are some steps that you can take to prevent unauthorized security breaches and will provide you with a solid foundation to protect yourself from basic malicious attacks.

Can social media help with your small business?

2011-11-01T11:02:00.000-04:00

Social media has quickly become one of the best ways for a small business to compete against bigger players in their industry. For a business, creating a social media strategy not only allows you to create a personal connection between your brand and your customers - it also gives you the opportunity to:

• Build customer loyalty

• Create great customer service through interaction

• And lower your customer acquisition costs in the long run.

A recent survey by Michael Stelzner, provided interesting data that was shared in the 2011 Social Media Marketing Industry Report . What was found that small businesses who follow a social media marketing strategy received two times more qualified leads than those of businesses that didn’t.

As you can see, social media helps bring your brand in front of your potential customers much more easily than any other marketing strategies and at much lower costs. To be successful in your social media efforts there are certain things you should follow:

• Offer valuable content: Determine what your prospects need and try to fulfil it with great content. Will the content that you offer help them solve their problems? For example, for fans of your Facebook page, you can offer discounts, contests or exclusive promotions that reward them for their loyalty.

• Be consistent: Make sure that your communications are frequent and connect with your customers on a regular basis. If you haven’t updated your Facebook page over time, don’t be surprised if your prospects start leaving.

• Be visible on multiple social media platforms: Don’t just depend on one social media platform for your customer outreach. People are all over the web, having profiles on Facebook, Linkedin, Twitter all for different purposes. So, make sure that what you post is unique to the platform you’re on.

Along with strengthening your brand, social media has another advantage thanks to Google. It helps in your search engine optimization strategy. With the Panda update, Google has declared that social media activity will play a large role in how a website will rank in search results. The more people share your content through social media and link back to your website, the more Google will look favourably upon you.

Customers are looking for more than just a transactional relationship with their favourite brands. When you create an atmosphere that allows your prospective client to connect with your company by voicing their opinions and suggestions through social media, you gain their trust. This trust translates easily to higher revenue as it makes lead conversion easier.

How to hire for a start-up

2011-10-27T14:36:00.000-04:00

Your start-up has finally got financed and, flush with money, it’s time to hire great employees. Now what? How do you know what makes a successful start-up employee? Many entrepreneurs realize quickly that they need a strong team, but finding talented people is a difficult process. Most likely, finding exceptionally talented employees becomes even more challenging as they rarely leave their current jobs for a start-up and are always in demand. Here are some rules that start-up founders offered on how to recognize a potential recruit may be great for your company :

1. They have worked for start-ups before. Applicants that have worked for start-ups are used to the chaos and speed of execution. They are self-managed and are used to working with little resources.

2. Have some small business experience. A small business is very different from a start-up where resources are more readily available. However, having small business experience is just as valuable as a start-up because they are used to having more responsibility and can work independently.

3. They work on side projects. People who work on side projects relevant to their careers or passions are ones you want. It's because they are willing to experiment and learn from hands-on experience.

4. Possible overseas experience. This would be an interesting point to consider for two reasons. Firstly, people who have worked overseas are more willing to take risks. And secondly, they are at ease working outside their comfort zone. Two qualities that an employee must have in working for a start-up.

5. Always hire for your company culture. As a small start-up, you may be fast paced, chaotic, no rules, work hard and stay up late. If someone who is used to a larger company and a structured environment, they will immediately leave within a few days. So, make sure that the person you're hiring can fit in your start-up seamlessly.

6. Look for problem solvers. In a start-up environment, there are very little resources. So, when there is a problem, an employee must find a solution, and fast! The right employee won’t run away from this challenge and won’t let go until it’s solved. It’s this attitude that you need to hire for.

7. If you’re a young start-up – hire smart generalists. This advice came from Dharmesh Shah, co-founder of Hubspot. A start-up in its early days should always hire “smart generalists”, those who can do everything and can pick up new skills as they go along.

8. Check references. Always ask the applicant for three or more references. Then pick up the phone and call them! References are the best way to determine whether a candidate would be a great fit for the company. And sometimes, you may find out new information that couldn’t be found during the interview.

There is nothing more frustrating than hiring an exceptional employee and realizing that they aren’t a good fit a month later. You not only lose time but also money – a valuable premium for any start-up.

What to look for when hiring a salesperson

2011-10-26T12:26:00.000-04:00

In today’s competitive business environment, generating sales is absolutely essential for any small business. With a worldwide chaotic economy, making sure that you're generating strong sales is critical to your company’s survival. Companies have failed because they have a poorly executed sales plan. Marketing can drive brand awareness, but to generate sales revenue, you need to build a strong sales team.

So, how would you build a strong sales team? What are the qualities that you should look for when evaluating a potential sales recruit? To answer these questions, many sales managers agree that the top three qualities that are top predictors of success in a salesperson are:

• Passion
• Learning
• Drive

The salesperson’s attitude and passion

The first quality to look for is to find recruits who have a passion for sales. Sales is a hard job and the ones who succeed are those who consider the position more than just a job. Highly successful sales people tend to view their position as problem solvers, as opposed to just a salesperson. These people will go out of their way to build relationships with clients and work hard to solve their clients’ problems. A passionate sales team who are committed to making an impact on their customers make it easier to grow your business. By finding people who have a desire to be in sales, those who believe in helping people, you will be ahead of the game than the companies who hire sales recruits who are looking for a job.

Always willing to learn

A good sales person always tries to improve themselves. Look for those who have taken certifications, classes, seminars that help them improve their knowledge in the sales industry. They pay close attention to new ways to approach clients, cold call tactics, client relations and any other skills that help them become better salespeople. Top salespeople always look for a better way – taking the best and adopting the lessons that work.

Look for motivation or drive

Like any superstar, top performers work hard. They stay back an extra hour, making the extra cold call or setting an appointment. They make sure that the product is delivered and the client is happy. In short, they do whatever it takes to get to the top.

When creating a sales team - if you make the wrong hire it can hinder your sales progress. However, by hiring the right people you will be able to supercharging your company’s success.

CorporationCentre.ca $1 Incorporation Sale!

2011-10-25T11:06:00.000-04:00

Small Business Week is over, but starting your business has just begun!

If you missed out on our first $1 Incorporations promotion, CorporationCentre.ca is offering another chance to take advantage of this great deal.

For one day ONLY, CorporationCentre.ca is offering $1 Incorporations.

On October 26th from 9 am to 5 pm ET,you can incorporate your business online with us for only one dollar.*

Click here for more information on incorporating your business.

Please note that this promotion is offered for orders placed on October 26th between 9 am and 5 pm ET only.

*Plus government fees. Click here for details on government fees for all Canadian jurisdictions.

Make Your Small Business Eco-Friendly

2011-10-21T11:04:00.001-04:00

You may think that making your operations eco-friendly is going to be time consuming and costly, but surprisingly going green can lower your operating costs in the long run.

Going green is all about maximizing efficiency and conservation, and minimizing consumption - concepts that small businesses like to hear. You can do the environment and your business good by making a few small and simple changes in your operations.

Conserve Energy

Between office lighting, computers, phones, printers and heat, offices consume a huge amount of electricity which results in hefty bills each month. But did you know that there are programs offered by Hydro companies that provide incentives for going green? The Small Business Lighting Program provides qualifying businesses with up to $1000 worth in free energy efficient lighting and equipment upgrades. Companies like Hydro One offer the Electricity Retrofit Incentive Program, which provides rebates to companies that have adopted energy efficient technologies.

Recycle

This seems like a no-brainer, but many companies still do not take the time to implement recycling programs for their business. Recycling doesn’t just mean paper or water bottles, ink and toner cartridges can also be reused and office equipment can be refurbished. As well, eco-friendly office supplies such as paper made from recycled or post-consumer content is available from most office suppliers.

Reduce Waste

This is the simplest way to go green, and to reduce operating costs. Encourage employees to only print when necessary, to print on both sides of paper, and to recycle all used paper. Digital communication and computer backups enable us to work electronically rather than leaving a constant and unnecessary paper trail.

Lead By Example

It’s one thing to implement an eco-friendly business model, it’s another thing to actually abide by your rules. Make sure that you introduce the new ideas to employees formally and provide easy ways for them to take part. Eventually, these ideas can be implemented as policies for all employees, and your business will be well on its way to going green!

5 Ways Small Business Can Use Social Media

2011-10-20T11:59:00.000-04:00

Social media is hard to avoid these days – everyone seems to have at least one account on a social media website. So when marketing your company – whether big or small – you have to go where the people are. You may think that only big name companies can be successful on websites like Facebook or Twitter, but social media is the ideal platform for small businesses running marketing campaigns on tight budgets. Here are 5 ways small businesses can use social media successfully to market their companies.

Customer Service:

Social media is all about connecting, engaging and interacting with customers and it puts customer service on a whole other level. Facebook and Twitter gives users the ability to post or tweet comments or questions directly to you, which allows for a more informal and real-time approach to helping customers. Asking for customer feedback, suggestions or comments will help to start the conversation flowing if you’re finding interaction to be one-sided. And, it’s important to respond to ALL customers, whether positive or negative. Keep the communication honest and open and your customers will appreciate the effort.

Networking:

For small businesses, networking is a great way to generate leads and find prospective customers. Social media sites liked LinkedIn make it easy for small businesses to network professionally from the comfort of their computers. Connections are made first through people you already know but from there you can find mutual connections, follow companies, join discussions, and take part in Q&As. All of this gives you a continuously expanding professional network at the tip of your fingers.

Advertising:

For small businesses that are wary of the enormous costs associated with traditional media like print, radio and television, social media gives you an inexpensive and measurable alternative. And again, because everyone is already using social media, it’s become the best place to advertise. The Facebook and LinkedIn advertising platforms are web based, easy to use, and cost effective. Your budget is up to you, you can start, stop and modify your ads at any time, and you only pay when someone clicks. On top of that, you can easily measure the results of your campaigns through metrics that allow you to analyze impressions, clicks, click through rates and spend while your campaign is running.

Inbound Links:

If you’re thinking about using social media for your business, chances are you’ve got a website already. Inbound links are links from external sites that bring traffic to your website. The more your website is linked on outside sources, the more traffic or referrals you’ll get. Plus, inbound links help increase your ranking in major search engines if the inbound links are relevant and of good quality. So posting information to your blog which links to your website, then posting to Facebook and LinkedIn, and tweeting it on Twitter can create direct clicks, shares, or re-tweets – all of which contributes to inbound traffic to your website.

Branding:

Get your name out there! I’ve said it twice and I’ll say it again – go where the people are. You might find social media intimidating (“what if no one ’Likes’ us?”) but it’s all about interacting and building relationships, no matter how many people are watching. Don’t expect major results over night and don’t try to compete with the big guys, but stay active online by posting relevant, interesting and fun information on a regular basis and eventually you will have built your own community within the larger social media framework.

Since social media is still relatively new to most people and seems to be constantly changing, it’s a good idea to keep on top of the latest trends and to pay attention to what other businesses are doing. Regular research helps to keep your business in the know when current social media platforms make significant changes or when new platforms are released. A good way to stay on top of the trends is to subscribe to RSS feeds from reliable tech news sources such as Mashable or Social Media Examiner. Tech blogs and Twitter trending topics can also give you an idea of the latest in social media development.

When it comes to social media the key is to watch what other people are doing, stay on top of what’s current and, most importantly, have fun with it!

Why a small business needs an ecommerce site

2011-10-19T11:37:00.000-04:00

In the era before the internet, it used to be that small businesses would market their services locally through networking or word-of-mouth. Their marketing strategy was to provide great customer service, and grow organically until they could buy advertising in tv, radio or even print newspapers.

Today it may still be a good way to market, however, with the ease of creating an online presence, there is no excuse not to have your own website or an ecommerce store. It is a given that every brick and mortar retailer MUST have an ecommerce website, a social media profile on Facebook and a blog. If you don’t, it is reflected in your dwindling sales.

The internet has created so much efficiency that it has affected every aspect of your business, from:

• merchandising,

• pricing,

• marketing,

• promotions

• and even sales!

The true power of the internet is that you can automate one-on-one interactions to many people without having to lift a finger. This allows you to provide personal service to thousands of people from your location, without having to increase your staffing needs or even in some cases, technical know-how.

Some other advantages in having an ecommerce site are:

• Level the playing field between large and small businesses. With the right technology, you won’t be able to see the difference in service or performance.

• It saves you money. Keeping operating expenses down is a main factor as to why you should start an online store

• Reach more customers around the world. With a storefront in your neighbourhood that is already doing business, why would you even want to have an ecommerce website? Opening a brick and mortar store restricts you to your local area that you target. However, with an ecommerce site your market expands beyond your neighbourhood. You now have options to target any country that you want to... Done well, a business could double their profit margin just from their online business alone.

• Track everything your customer does online and on your store. The internet allows you to get a deeper understanding of your customer’s purchasing habits, all the way down to the individual client. All this data can be used to create brand loyalty, upsell more products for a higher profit margin and get into new markets.

By selling online, your company size doesn’t matter. All that matters is the shopping experience and whether the product is great! As mentioned before, ecommerce creates a level playing field where small businesses can compete effectively against the big boys.

Financing Options for Start-ups

2011-10-18T14:45:00.000-04:00

One of the biggest challenges for many start-ups is to find money to keep the company running. Break even point has not been reached and with expenses exceeding sales revenue , a CEO will soon need to look for financing options.

Where you get your financing depends on:

• what kind of business you are starting and industry you’re in,

• how much money you need to raise and

• what you will use the money for

Here are some of the financing options:

Family, Friends and Personal Savings

Personal savings are one of the easiest ways to finance your business. This option may be the best option in the earlier stages of the business, especially when you don’t have a product or clients. You don’t have to answer to any outside investor who only cares about how soon they are going to make their money back and not about the company. This may be your only choice if you aren’t able to attract investors. Family or friends can also be an alternative source, however be careful if they invest in your business. Is it worth losing the relationship if your business fails?

Angel Investors (early stage)

Angel Investors are investors who invest only in early stage start-ups and have been known to invest between $15,000 to $500,000 for equity in your business. Angels mostly invest once a business has been proven and has made some revenue. In certain industries, angels invest as a group, especially when they see a great opportunity.

Incubators

Incubators became popular during the dot-com boom, where they provided office space, access to mentors and IT infrastructure in return for a percentage of a business. They have become very popular recently, with an increasing number of incubators popping up around the world. Incubators work very closely with entrepreneurs by mentoring them in every aspect of the business from sales/marketing to operations. This is why many successful start-ups come from incubators. However, the success of an incubator depends on the experience of its board of directors and investors.

Venture Capital

Venture capital has become a popular option for many start-ups, however it is difficult to get financed by VCs . They are very selective in the investments they make, investing in as little as 1 start-up for every 100 proposals they receive. Due to the fast returns expected, VCs look for high growth potential start-ups that can provide them with a quick exit and a return on their investment in a short amount of time. If you feel that your start-up has a lot of potential for a VC, the best way to get in front of a venture capitalist is to network and get introduced by a mutual acquaintance.

Business Loans

Approaching a bank for a business loan is a standard path to fund a start-up. However, with the financial chaos affecting economies, many banks have become extremely risk averse. Although the benefit of getting a loan is that you keep ownership of your business – getting a loan will depend on things such as:

• the type of business that you run,

• the industry you’re in,

• and your credit rating.

However, if your business plan is solid and shows the loan officer how quickly you will produce revenue and break even, you may be able to get financed by a bank. In many cases, businesses use credit lines to manage their cash flow, and business loans to make large purchases such as equipment.

Most businesses will use a mixture of financing instead of depending on just one source. For example, as a start-up you might invest your own money for market research, then pitch investors to invest in the early stage of the company and then obtain a loan from the bank to purchase equipment. Once your company has grown, you may approach venture capitalists to finance your expansion into a larger company.

CorporationCentre.ca celebrates Small Business Week

2011-10-17T10:29:00.000-04:00

Celebrate Small Business Week and find your perfect business name with CorporationCentre.ca!

CorporationCentre.ca is offering FREE name pre-searches to all our customers from October 17 to October 21.

A name pre-search provides a preliminary search through the NUANS database to provide results that show an “exact match” the names you are submitting to register or incorporate your business. By checking the availability of your name before conducting a NUANS search, you can save time and money spent on multiple NUANS reports!

Click here to find out more about name pre-searches and to order your FREE report.

Please note that your order must be placed between October 17 and October 21 ONLY to receive the promotion.

The Business Plan and why you need it

2011-10-13T11:17:00.001-04:00

As a business owner, you have to be aware of and work with so many variables – like creating a compelling product, building a great team, generating sales and keeping your customers loyal. Writing a business plan helps you as it will guide you in understanding how your company operates. The process of writing a business plan, will help you learn how to forecast any challenges, understand what resources you would need and even manage your own company more effectively.

What does a business plan consist of?

First and foremost, when writing a business plan - you should be aware as to who your audience is. Depending if you’re pitching a VC or asking your banker for money, you should tailor the plan to what they are interested in. In general, every business plan are composed of these sections:

• Executive Summary: Placed in the front of the plan but written last, this allows the reader to quickly understand whether want to read the rest of the plan or not. It will provide them with a concise idea of what your business is, where the opportunity lies and how you plan to solve it.

• Description of Business and revenue model: This is a deeper analysis in your business. What is the problem you’re solving, how are you providing a solution, and how can the business be sustainable over the long term and make a profit.

• Industry Description: What industry are you competing in? Do you research and find out who the main competitors are and why are they failing or doing well. Present your company in a way that outlines how you plan to capture market share.

• Market Research: This is a deep analysis into defining who your customers are and whether they are interested in your product or service. By doing your market research, you may find out that your potential customers may want something else entirely.

• Operating Plan: How are you going to deliver your product or service to your customers? Make sure you account for every detail including customer service, manufacturing, sales and human resources.

• Management Team: For any business, it’s the management team that will make or break the company. Include a summary of each team member’s experience, what their responsibilities are and how they will help the company succeed.

• Financial Analysis: The most important aspect of any business plan, the financial analysis will show others if your company is going to make a profit. It will outline when you will break even and how long will it take to profitability.

Tips on a successful business plan

When you are raising money for your startup – it’s your business plan that will grab the attention of potential investors. Make sure that you have no spelling or grammar mistakes, it is printed on good quality paper, and most importantly, your financials are solid. Mistakes in your plan will make a poor impression to anyone who’s reading as they will wonder if you will make same mistakes in running your company.

As mentioned earlier, understand who the plan is for. If your plan is for your partners or employees then it would reflect more on the operations side. Likewise, a plan written for a loan officer, they will be very interested in your financial analysis. Did you make realistic projections? Will your potential sales revenue cover the loan payments over time?

Your business plan is one of the best methods to show investors that your company is worthy of their investment. By keeping your plan clear and realistic you will be able to show them that you can make it happen.

What to look for in a business partnership

2011-10-11T12:34:00.000-04:00

Just like a marriage, a business partnership is a joining of two people working towards a common goal, sharing the same values and vision before it can move forward. These partnerships however, can take a variety of forms, ranging from joint ventures to long term commitments. Here are some tips on what makes a strong business partnership:

Sharing a common vision: It’s extremely important to define where you envision your business to be. Ask yourself questions such as; what type of clients do you want and what kind of service/product you’d like to offer? If your vision of the company is different than that of your partner, you will encounter problems down the road. To avoid this, sit down with your partners and discuss where you see the business heading. Ask yourself, what drives you and excites you about the business? Do not leave the table until you’ve come across an agreement.

Know what you bring to the table: Make sure that your partner has a skill set that is complementary to yours. By having an honest discussion on both your strengths and weaknesses, this will help you understand if both of you can create a successful partnership or require someone to fill in the gap.

Create both individual and company goals: Start creating company goals and then your individual goals. Your individual goals should support company goals. By measuring and holding each other accountable in achieving them, you should have no problems in being committed to the long term success of the company. It is also important that you meet on a weekly basis to review the status of your goals and discuss any challenges that may have come up.

Nip problems in the bud quickly: Like any marriage, partners will argue. To make it a successful partnership, what’s important is how you resolve those issues. Instead of letting a problem or an issue affect you or fester, make sure that you immediately discuss them with your partner. By meeting regularly to discuss this, everyone can address their concerns, create a plan to solve it, and find a resolution quickly.

Create accountability: This is the most important aspect of any business partnership! One of the major issues between partners is a lack of clarity around job responsibilities. Without clearly defining your tasks and responsibilities, there will be some confusion on who is actually running the business. So ask yourself these questions: Are your tasks and responsibilities clearly outlined? Do you know what your job is, what you’re responsible for and how you’re measured? All tasks should be clearly defined and assigned. Make sure that they support the long-term company goals and should also include clear metrics that measure the success of the job. This will measure your progress and help you be accountable to yourselves, to each other and to the business.

Creating a contract - protecting yourself and your business

2011-10-04T12:08:00.000-04:00

In business, a well designed contract protects you from any unknown variables, much like an insurance policy. You pay for the policy, hoping that you’ll never have to use it. More specifically, a contract helps you manage and avoid potential risks. Due to the unpredictability of the business world, smart professionals create contracts to reduce any unnecessary costs and minimize all risks.

Why should you use a contract?

A contract is a legal document used between multiple parties to outline a business relationship. The contract becomes valid only when the parties involved agree to the terms and conditions by signing the document. It should detail the:

• expectations of the stakeholders;

• the relationship between all parties;

• the nature of the transaction;

• and the next steps of the relationship including any recourse in case of disputes.

It is often used for:

• During the hiring of freelancers/vendors/suppliers

• During the purchase of goods or services

• Real estate transactions

• Business partnerships

• Non-compete, non-disclosure or confidentiality agreements

With a contract between parties, all issues can be outlined in detail, thereby avoiding any problems that may happen in the future.

Things to be aware of in creating a contract

Don’t be vague, make sure the contract is detailed – The ideal contracts are detailed and focused. Make sure that the terms and conditions are simple, specific, and that avoids any uncertainty. The more specific you are in your expectations or terms, it becomes very clear on what is to be done by all parties and by what time.

Identify all concerns you have – Make sure that all your concerns are outlined and are answered. You don’t want to find out the hard way in a situation that could have been avoided.

Understand the laws – Make sure that you know your provincial and even local laws that can affect the contract. This is especially true for any real estate transaction where the laws change by province. It is best to consult a lawyer who is knowledgeable about your industry and can advise you on the proper stipulations.

Review the contract with a lawyer - Never sign the contract until you’ve gone over it with a lawyer. Many people make the mistake of only going to the lawyer after the agreement has been signed or when a problem came up.

A contract is meant to be used as a way to protect yourself and facilitate any business transaction. It creates a common platform from where all parties can move forward in consummating a business relationship. It also is used to protect yourself from any harm or legal problems and can be one of the best decisions you’ll make for your business.

Small business financing - tapping into Ottawa's R&D tax incentive program

2011-09-27T11:28:00.000-04:00

SRED is known as the Scientific Research and Experimental Development (SR&ED) Tax Credit program. According to the Canadian Revenue Agency – the SRED program is meant for the businesses that conduct research and development in Canada. It is the largest source of funds from the government in regards to R&D programs that supports industrial research.

In terms of the amount of credit received, the SRED program offers:

• For a Canadian controlled private corporation (CCPC), they can earn a 35% federal credit on their first $3 million in R&D expenditures.

• For large companies that exceed certain taxable income or capital limits, the federal credit drops to 20%.

For a small business, this means that you can claim up to 65% of your engineering team’s overhead – especially those involved in R&D. As an example - if you spend $2 million in salaries for your R&D team, you receive $1.35 million refundable tax credit, when the overhead rate is included in the calculation. So when you are considering outsourcing your R&D, consider that the government will pay YOU money to keep the intellectual research in-house!

What qualifies for the tax credit?

To determine whether your company qualifies for the tax credit, ask yourself these questions:

• Do you deal with challenges of a technical nature – software, hardware or industrial.

• Did you spend money to solve the technical obstacles?

If you said yes to both questions, you qualify for the credits. They can also be claimed on any work that meets these criteria:

• Experimental Development- to create or improve materials, products or processes.

• Applied Research- to advance knowledge with a specific application.

• Basic Research – to advance knowledge without a specific application.

• Support work for the above.

As you can see, the scope of what can be claimed is broad and could probably apply to most Canadian business.

Tech company start-ups know that they can file for the SRED claims, and for many, these refunds help them get through to the early stages of the company. Almost all of a start-up’s expenses can be claimed for R&D credit and are highly encouraged. This doesn’t mean that engineering, architectural, and programming firms cannot apply for the SRED credit, even if they are under contract from clients. They should be filing their claims immediately if they have been contracted to provide R&D services.

Check the Canadian Revenue Agency site, as it has all the information regarding contracting for services, including contract requirements. The best way to determine if you qualify is to download one of their industry specific guides that will outline the SRED application process.

Is owning a franchise right for you?

2011-09-22T11:55:00.000-04:00

In the last few years, the popularity of the franchise business model has skyrocketed. Many people are attracted not only by its proven business model but also the ease in owning one. While the success rate for franchises is somewhat higher than owning independent businesses, there is still the possibility that an individual franchise won’t succeed. So, before purchasing a franchise opportunity, ask yourself these six questions:

Are you ready to run your own business?

As an entrepreneur, you can be expected to work more than 60 hour weeks, doing all the dirty work; such as mopping floors, emptying the garbage and handling upset customers. If you are willing to put in the work in the early stages, and see it through, you have a higher chance of success.

Are you willing to completely follow the franchisor’s system?

The most important part of a franchise’s success is the brand consistency that customers find from one franchise to another. By being a franchise owner, you are following a particular system determined by the head office. If you’re an entrepreneurial person, think twice before purchasing a franchise as you may not like to conform to a formula and may chafe against the restrictions.

Are you able to afford it?

Understand what your financial requirements are going to be and then double it! One of the major causes of failure for franchises is being poorly capitalized. Do your research – ask your franchisor what your start-up costs will be, including any detailed expenses such as equipment financing and rent. You will not only need money to open your franchise, but also to manage it until it becomes profitable. And for some franchise businesses, it may take up to a year to break even.

Does the corporate headquarters have a history of success?

You should do your research into the owners of the company, including their business background and successes. Work with an accountant and review the finances of the franchise. Is it solid? Don’t be afraid to ask questions, as it’s their support and experience which will guide your success.

Do you like the franchisor’s staff—those people with whom you will be working?

A chain is only as good as its weakest link. Which means that you should investigate the staff that provides support for your franchise. Make sure that you’re comfortable with them and are able to build a good relationship.

Is your family behind you?

This applies to all entrepreneurs – starting a business, be it a franchise or an independent, will require a lot of sacrifices. Especially in your personal life. For this reason, communicate clearly to your family that you will be busy, and set some boundaries. They will need to be supportive of your decision and are willing to compromise.

Finally, hire the expertise of professionals, such as an accountant and a lawyer. By creating a team, you’ll be well prepared to face any challenges that may come upon you. By evaluating the franchise you want to purchase and your own strengths and weaknesses, you’ll have a pretty good picture whether you’re ready to take the next step in owning a franchise business.

How to manage work/life balance as an entrepreneur

2011-09-21T14:51:00.000-04:00

Choosing the life of an entrepreneur is not for the faint of heart. It can become hectic, with the line between family and work being non-existent (including those who run home-based businesses). Maintaining a healthy balance between your home environment and work can be difficult, especially when you are always “on”. Especially when clients, suppliers and employees are able to reach us at all hours. You can get so bogged down with work that you will forget what it is like to have free time and can neglect your family and friends!

So what can you do to maintain a great work /life balance? How can you juggle your work and keep it from interrupting your family or social life? Our tips will help you maintain that balance while also helping you grow your business.

Manage your time

The most important part in managing time is not being able to schedule your hours, but in how to set priorities. Your work/life balance depends on what your life goals and passions are. Once you know what your priorities are, you must then analyze those items that compete for your attention. Decide what you want to focus on and discard what is not important in your life.

Be ready to communicate your expectations to people - which sometimes requires you to say “No” to certain activities. You have to help them understand that being an entrepreneur means working long and crazy hours. Have a discussion with the people close to you and plan for re-scheduling conflicts.

Make a schedule for your day - end your day at the same time, and try to stick to it. It’s not always easy as there is always work to be done. In some days, you might find yourself fighting fires with no one to help you, and you’ll be up late into the night. You must have strong self-discipline as there is no one who is going to be looking over your shoulder telling you what to do.

Delegate

Although doing everything yourself makes financial sense when you start out in your business, you should consider hiring contractors, consultants and employees when the time is right. Micromanaging is a straight path to not only stress, but also making mistakes which can affect your business. The benefits of delegating outweigh the risks and costs, so giving others the responsibility of doing minor tasks from writing a blog to your accounting, you’ll focus on what you’re good at – which is growing your company.

Focus on your health

No matter how busy your schedule is, always make time for fitness. Even if it means going for a long walk around the block, just do it on a regular basis and get your heart pumping. A good workout:

• Helps reduce stress ,

• Allows you to maintain a routine,

• And focuses your mind.

Be it going to the gym or playing a sport, physical activity helps your body create endorphins which is known to keep people’s mood up.

Being unreachable

Running a small business means dealing with all kinds of issues and putting down fires. Your employees, suppliers and clients are constantly vying for your attention by phone and email. To avoid being overwhelmed by the constant barrage of emails and calls, unplug yourself from any communication device at certain times of the day and focus on getting your work done. Block out some time during the day to respond to emails or voicemails.

Get a life

It’s very easy to get sucked into the life of an entrepreneur. You are passionate about your business and you work hard to make it successful. In the first few years, you may need to work around the clock to get your business off the ground, but it will catch up to you, leaving you with high blood pressure, broken relationships and more.

To keep a balance, you must be able to walk away and spend time on things that you enjoy. As much as you put your focus on work, put the same on your recreational activities. Don’t forget about the most important relationships in your life – keep your lines of communications open between your family and friends so that you’re not isolating yourself from them.

Being an entrepreneur requires you to make many sacrifices; however, you have to realize the bigger picture –you want to be able to enjoy the fruits of your hard work. If you don’t pace yourself and schedule regular fun time, you’ll definitely burn out.

What is the best business advice you’ve received?

2011-09-20T11:05:00.001-04:00

Sometimes, as entrepreneurs, we’re not as perfect as we think we are. In those cases, we have to get our answers elsewhere, usually from our mentors, family, board of directors or even clients. We’ve asked the small business community what was the best business advice they’ve received and implemented in their small business careers.

Wisdom comes from failing, learning from it and moving on. The most successful business person knows that sometimes the accepted decision doesn’t always work. At that point it’s best to understand the situation you’re in and go with your gut – and the experience of others.

Here are some good ones to take to heart:

Brian Carter – Sr. VP, Sales at Global Spec Electronics

• This too shall pass. The challenges that you face are temporary, and that change is the only constant thing we have.

• Don't sweat the small stuff. Know your priorities and leave the unimportant stuff alone.

• Think (and act) two levels up from your current role. Always think bigger than your job and you are here to help your boss make money.

• Don't take business decisions personally. You are here to make money, so all decisions are geared towards that. Do not get emotionally attached to anything in your business as the time may come to let it go.

Dean Ekman, PMP - Deputy Director, Division at CTSC

The best business advice I have ever received can be summed up as:

• Do the right thing - whether it's related to legal concerns, contractual obligations, best business pactices or ethics - you can't go wrong.

• Don't confuse "business" and "personal" - it keeps everything cleaner in the long run. Keep everything separate.

• Remember why you're in business - if you say it's because you're "doing it for the greater good", or "because someone has to" or "it's thr right thing", that fine - so long as you never lose sight of being in BUSINESS - that means making (and collecting) enough money to make payroll and rent, invest and expand and (dare I say it) make a profit.

Adam Drake, CFA - Owner, Highland Investment Advisors

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” – Warren Buffett

I have this quote posted in my office. It’s a simple reminder to always act with integrity and work with people of integrity.

Pre-search your business name for FREE with CorporationCentre.ca

2011-09-15T12:13:00.000-04:00

On September 19th and 20th CorporationCentre.ca is offering FREE name pre-searches to all our customers*.

A business name “pre-search” provides a preliminary search through the NUANS government databases** to provide results that show an “exact match” of the names you are thinking of using to register or incorporate your business. By checking the availability of your name before ordering a NUANS name report, you can save time and money spent on multiple NUANS reports!

Click here to find out more about name pre-searches and to order your FREE report on September 19th and 20th ONLY.

*Please note that the pre-search is offered to Canadian individuals and entrepreneurs developing names for the corporations or businesses, it is not intended for search houses or other company formation professionals to use repeatedly. CorporationCentre.ca reserves the right to limit the number of pre-searches.

** Please note that NUANS does not include the Quebec provincial registry, which can be viewed here.

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Faites une pré-recherche du nom de votre société gratuitement avec CorporationCentre.ca!

Les 19 et 20 septembre, CorporationCentre.ca offre à tous ses clients l’utilisation gratuite de son service de pré-recherche de nom.*

Une “pré-recherche” de nom d’entreprise vous permet d’obtenir un rapport préliminaire de recherche au moyen des bases de données gouvernementales NUANS** vous fournissant ainsi une liste des résultats correspondant exactement au nom que vous comptez choisir pour l’enregistrement ou l’incorporation de votre société. En vérifiant la disponibilité du nom désiré avant de commander un rapport NUANS, vous économiserez du temps et de l’argent autrement dépensé sur de multiples rapports NUANS!

Cliquez ici pour en apprendre davantage sur les pré-recherches de nom d’entreprise et pour commander votre rapport GRATUIT les 19 et 20 septembre SEULEMENT.

* Veuillez, s.v.p., noter que la pré-recherche est offerte aux individus canadiens et aux entrepreneurs désirant nommer leurs corporations ou sociétés et n’est pas destinée à être utilisée à répétition par les boîtes de recherche ou autres professionnels en établissement d’entreprises. CorporationCentre.ca se réserve le droit de limiter le nombre de pré-recherches.

** Veuillez, s.v.p., noter que la base de données NUANS n’inclue pas le registre des entreprises du Québec qui, lui, peut être consulté ici.

Reasons for creating an advisory board for your business

2011-09-14T15:16:00.000-04:00

One common problem that entrepreneurs face is the problem of finding a group of peers who understand the challenges of running a business. Sometimes, with the constant battles of putting out fires, solving problems on a daily basis that they sometimes forget they need to take a step back from the business and deal with larger strategic issues. This is where an experienced board of advisors can come in and provide a sounding wall to vet ideas and strategies that will benefit the business.

Advisory boards are such a great tool that no small business should be without one. It’s like having a group of experienced consultants working for your company, those who can provide you with their:

• independent perspectives,

• experience,

• special skills,

• and network of connections to your company.

Is creating an advisory board right for me?

Although there are numerous benefits to having an advisory board, it does take a lot of planning and determination to create one. As an owner, you must be aware of confidentiality issues – to be able to trust that your advisors have your best interests at heart and not divulge company secrets. Likewise, you must be ready to communicate the issues that your company face, such as operations, employee problems and even opportunities. Without open communication from both yourself and the board, it will be very difficult for your business to benefit from this collaboration. Of course, when you recruit for an advisor, the person you want has to be capable of handling sensitive issues and confidential information.

For your advisory board to be effective, you must create guidelines in these areas:

Responsibilities – You should create a formal job description for everyone involved in the board. By clarifying their duties, there will be no overlap and misconceptions on their duties. When you recruit, be aware of what your organizational needs are, so you have the right expertise available.

Meetings – You should outline the frequency, length and location of your meetings. Remember, your advisors are also busy, so you should leave some flexibility in meetings to accommodate their schedules.

Compensation – Be clear on how you plan to compensate your advisors. Will you compensate them for attending meetings? And how will you do it – with cash or stock? You should be upfront about this – remember that your advisors are helping you out of their busy schedule.

Having an advisory board is a huge benefit to your small business, provided there is a clear direction and is supported properly by yourself and your company. It will allow your small business to compete against larger competitors by working with talent that might not otherwise be available.

Researching your business opportunity

2011-09-12T11:41:00.000-04:00

The success rate of a new business getting past its third year is low. To increase your probability of success, you must ensure that the business opportunity that you explore is financially viable, has a market and that the idea is suitable for your personality. Before you take the plunge, take the time to do some research into the opportunity and see if it’s a right fit for you. . Here are some tips that will help you determine if your business opportunity is going to be successful.

1. Do your market research.

This is the first and most important aspect of your research. Is your product or service something that you would use in your life on a daily basis? If not, then why do you want to get into that business? Remember, your clients want to buy a product that will help them solve their problems. At this stage, you should contact a few prospects and provide a demonstration and get their feedback. Take a deeper look into the market; are there a lot of competitors? How are they doing? Is there space for another competitor such as you? By finding the answers to these questions, you’ll determine if your new business has a market opportunity.

2. What is your business revenue model?

Or in other words – how are you going to make money? Take a detailed look at your business - do you know clearly how the cash is going to come in and how much your prospects are willing to pay? Are the profit margins so low that you can barely make a living from the sale? If you don’t understand where the money is coming from, then you shouldn’t be getting into this business.

3. Know your numbers

Starting a business requires you to not only understand if your clients will buy from you, but also knowing how much it will cost to deliver that service. Once you know the numbers (and you should have already identified how much your clients are willing to pay for your product/service), you will be able to determine whether there is enough of a profit margin for your business to grow. A good tip to determine your start-up costs is to outline all the steps you need to take in order to deliver a product to your client. Then list the equipment or services that you will need. This list should indicate how much those start-up costs are going to be.

4. Seek professional advice

Get some advice from experts and other entrepreneurs related to your business. Do your research on the internet, try to find a forum, or an association that is in your industry and try learning as much as you can. Understand potential challenges or any barriers to entry that new businesses face, any rules or regulations, and as many costs that may be related to your business. It would be wise to spend the money in hiring experts such as a lawyer and an accountant to help you.

Starting a business is very exciting, however, if you haven’t done your homework, you’ll soon find out how stressful it can be. Always seek advice from experienced people and use it to your advantage. It’s best that you make the right decisions early than suffer a major loss down the road as a result of selecting the wrong business opportunity.

Business Planning: An important step towards starting your business

2011-09-08T12:57:00.000-04:00

As an entrepreneur, you juggle a lot of balls.

From managing employees, sales, financial and operations, it’s easy to get lost, trying to put out the daily fires. If you don’t take a step back and take a look around, you may have realized that your business is not what you had originally started.

This is the point when you realize you should have sat down and spent the time in creating a business plan. Not just something that you’ve jotted down in the back of an envelope, but a document that maps out your long term strategic plan for your business.

Creating a business plan is important as it not only provides you with a compass – guiding you in the right direction, but also reducing the stress and frustration in reacting to situations on a daily basis, because you know the path you are on. A business plan also allows you to:

• Be visionary –identify where you’re going and keep you on track towards your goals;

• Execute with confidence – you know what your tools and resources are going to be and can handle any potential surprises;

• Be fiscally strong – you’ve already laid the groundwork for your financial health, knowing your expenses and profit margins.

What’s a business plan?

A business plan is a document that outlines how you are going to achieve success in your business and a step by step process on how you’re going to get it done. However, you have to realize that the information that you put in your business plan depends on who your target audience is.

Here are the items you need to keep in mind when writing your business plan:

1. Know your audience

Tailor your plan to your readers’ requirements. If the plan is to raise funds, then you must indicate how your potential investor would make a return on their investment and how long it will take. However, if you are communicating your future plans for the company, then the goals of the plan are different. Always remember to tailor the material to your audience.

2. Identify your customers

Use the plan to delve deeply into outlining who your customers are. Why would they want to purchase from you. What are their pain points? How will you solve it for them? Understand the size of your potential market and how it will grow over the next 5 years. By answering these questions, you will uncover if your business is sustainable for the long-term.

3. Who are your competitors?

You also need to know the size of your competitive market - how will you differentiate yourself? What kind of challenges will you face when you go against them? It’s important to know your competitor’s strength and weaknesses so you can exploit them to your full advantage.

4. The design of your plan

If your plan is a document, make sure that your plan is easy to read, well organized and looks professional. If you are doing a PowerPoint presentation, make sure that your key points are clearly stated and easy to read.

5. What is the ROI?

Most business plans are written with the goal of raising financing. So, know your numbers! You should be aware of how much money you’ll need to raise, what your profit and operating margins are and how you’re going to make money. If you’re looking for funding from investors, then you need to communicate clearly the return of investment that they will get. How long will it take for them to make back their investment and more? What will make them confident that you will succeed in this business – so that they know they will not lose their money? They also would want to know if you are prepared for all contingencies and can protect their investment from failure.

Finally, a plan is not written in stone. Due to changing market conditions or new opportunities, you may have to react quickly and adapt. You should review your plan every quarter, just to see where you are against your milestones and address as necessary.

Why Small Businesses are Important for the Canadian Economy

2011-09-07T11:04:00.000-04:00

Are you considering starting up or working for a small business? If so, you will be making a strong positive contribution to the Canadian economy. In recent years, small businesses across the country have played a crucial role in stabilizing the often volatile economy in Canada, and there are a variety of reasons why.

Small businesses are job creators. They have helped to create thousands of new jobs in Canada. According to statistics published by Statistics Canada in July 2008, small businesses alone have accounted for 37 percent of new jobs in the private sector between 1997 and 2007. Since 2008, these figures have shown a steady increase.

As of July 2011, 98 percent of all businesses in Canada are now considered as a small business, with 48 percent of the work force being employed by them. According to the July report, there are currently more than 2.4 million small businesses across Canada, a number which will surely increase over the next few years.

Employees of small businesses currently account for more than two thirds of the employment in five major industries:

• Non-institutional health care (89 percent);

• construction (76 percent);

• other varied services (73 percent);

• food and accommodations (67 percent),

• and forestry (67 percent).

These statistics are more than likely to increase, especially if the state of the Canadian economy improves. In addition to contributing to the increase of the country’s employment rates, small businesses are also an integral part of the GDP. Some statistics to consider - in 2006, small businesses made up roughly 23 percent of Canada’s GDP. This figure varied from one province to another, and it peaked at 27 percent in both British Columbia and Prince Edward Island.

Two years later, Saskatchewan’s small businesses accounted for 35 percent of the GDP, while BC placed second with 32 percent. Not far behind in third place was Quebec, with a 30 percent contribution. One of the main reasons why Quebec’s small businesses have made such a significant contribution to the GDP can be attributed to the fact that more than 56 percent of Canada’s small businesses are located in Quebec.

Although small businesses in Canada are important, there is quite a bit of work left to do to make it easy for businesses to succeed. The Canadian Federation of Independent Businesses (CFIB) has released its new report which highlighted four key areas:

• better labor laws,

• reduced taxes to help businesses grow,

• a reduction of red tape,

• and better spending on services for small businesses

Their conclusion is that the government needs to be more involved in order to make it a balanced economic environment for entrepreneurs. With the chaos in financial markets, the strong hand of the government is required to provide a stable platform so that many businesses can succeed. A private/public partnership is required in order to address each of these issues, one that benefits both owners and employees.

Small businesses are currently on the rise, and it is expected that many more will be established across the country in the coming years. Consequently, the more small businesses that exist, the great their contributions to the GDP as a whole will be. So, if you considering starting a small business of your own, there is no better time to do so than now.

$1 Incorporations from CorporationCentre.ca

2011-09-06T15:03:00.000-04:00

On September 7th and 8th CorporationCentre.ca is offering you the chance to incorporate your business for only $1*. That’s right! Instead of the usual $99 service fee, we will save you time and money by providing $1 incorporations to celebrate Labour Day.

This offer is for 48 hours only!

Please visit CorporationCentre.ca or call 1-866-906-2677 for more details.

* Plus government fees and optional products and services.

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Le 7 et 8 septembre, CorporationCentre.ca vous offre la chance d’incorporer votre entreprise pour seulement $1*. Vous avez bien lu! En célébration de la Fête du Travail, nous vous offrons notre service d’incorporation d’entreprise pour $1 au lieu des $99 habituels.

Cette offre n’est valable que pour 48 heures!

S.v.p., rendez vous au CorporationCentre.ca ou composez le 1-866-906-2677 pour obtenir des renseignements supplémentaires.

* Frais du gouvernement et produits et services optionnels en sus.

"Why join the navy if you can be a pirate?" Entrepreneurship Lessons from Steve Jobs

2011-09-01T11:18:00.000-04:00

The retirement of Steve Jobs from day-to-day operations at Apple caused such a furor from the business community that the price of Apple stock dropped by 7%, losing a value of almost $17.5 billion dollars in one day. Jobs’ popularity stems from the fact that in spite of facing some stiff opposition in one of the most competitive industries, he led his company to become one of the most innovative and profitable companies in the world. Having started Apple in the late 70's, he was forced out by the board in 1984 and was asked to come back to turn it around in 1996. From then on, his creative vision and leadership single-handedly transformed the computer industry and changed how the world communicates.

Many consider him to be the embodiment of entrepreneurship and a great role model for businesspeople and entrepreneurs alike. He not only started and grew Apple, but also has done the same for other companies such as Pixar and Next Technologies, making him one of the most admired billionaires in the world. Here are some of the lessons that he's learned in starting and growing a business.

1) Follow your heart

"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most importantly, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary."

Being an entrepreneur is a tough job! So be very sure that you are passionate about the business that you’ve started. Never forget that the person that you truly must make happy is yourself – as you will face a lot of challenges in your journey as an entrepreneur. And when you’re up late at night fixing problems, you know that deep inside of you, you don’t want to be doing anything else. Being an entrepreneur means believing in your ideas and having faith and most importantly, you must have faith in yourself. It is this faith that will draw others to you; because that’s the passion and vision others that will allow you to lead.

2) Make a positive impact or change the world

“Do you want to spend the rest of your life selling sugared water or do you want a chance to change the world?”

Those words challenged former Pepsi executive John Scully when Jobs tried to recruit him into Apple. Steve Jobs was obsessed with creating technology that would change the way people interact with it and make it an integral part of their everyday lives. To achieve his vision, he strove to push the limits of technical creativity, coming up with groundbreaking products that raised the bar in design and function. It was his vision that has made Apple the leader in innovation and the envy of many CEOs. But what does that mean for you? Ask yourself - does your business have a higher mission towards the world and your clients? Do you strive to make a difference in the world through your services and products? Because in the end, trying to change the world is just good business.

3) Don't follow the herd, be unique.

“Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes… the ones who see things differently — they’re not fond of rules… You can quote them, disagree with them, glorify or vilify them, but the only thing you can’t do is ignore them because they change things… they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.”

Stand out from the crowd, because that is what’s going to get you noticed. Progress in all things are made by people who stand strong in their ideas, are not swayed by public opinions and passionately care on how their actions benefit the world around them. Being unique in business may be just what your brand needs ... and should communicate. However, just being different isn't what you want to achieve. Instead, you want to be distinctive -- in the things your customers and clients value most.

Jobs’ achievements don't lie just only with Apple. However, it has been his crowning glory and by taking an almost bankrupt company to being the most admired, envied and emulated company in the world has left a legacy that will be hard to replicate by those who follow after him.

What Happens if I Get Audited?!

2010-05-11T11:15:00.000-04:00

It's certainly not a campfire horror story but many Canadians fear that they may be subjected to a tax audit. Is there basis to that fear?

The truth is that, for most personal tax returns, the chances of an audit are slim. The vast majority of Canadians, more than 90%, completes their tax returns accurately and files them on time. Of more than 26 million personal and corporate returns filed annually, the Canadian Revenue Agency (CRA) audits less than 2%. Most personal returns are accurate as the bulk of personal income is recorded on T4 slips. However, returns from small and medium sized businesses may be prone to error or may be fraudulent. As such, most CRA audits are directed at the business community.

This is not to say that you should assume that whatever you include in your personal return will slide through unnoticed. For example, if you live in a neighbourhood of stately, expensive homes, yet your income is barely above minimum wage, you may expect to be queried by the CRA as to other sources of income to support your lifestyle.

Should you be chosen for a tax audit, it is wrong to assume that the CRA is searching for criminal activity. A tax audit is conducted to ensure compliance with the Income Tax Act. An auditor may actually discover that you overpaid taxes and a refund is due. In any event, don't be confrontational. Cooperate with the tax auditor and make all your records available. It is possible that you made an honest error and you have the opportunity to discuss this with the auditor. The auditor is also well versed in tax issues and may be able to offer helpful advice in your tax matters.

Overall, be prepared. Keep careful records and don't discard them immediately after filing your return. If the tax auditor knocks at your door, be ready and be helpful.

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How to Master Canadian Taxes Before Next Year

2010-05-09T15:56:00.000-04:00

If you compiled a list of Canada's greatest complexities, chances are very good that the Canadian Income Tax Act would command a respectable spot on that list. In recent years, it has expanded incredibly, becoming a quagmire of confusion to the average citizen. It is no wonder that more than half of all Canadians now secure professional help to prepare and file their tax returns.

Have you tried to hold a conversation with a tax preparer during tax season? It is limited to several words as most tax professionals literally work around the clock to prepare as many returns as possible. If you are one of the clients, appreciate that your expectations are linked directly to your level of cooperation. In other words, your accountant cannot use information, sometimes basic and crucial, if you don't supply it. Due to the tremendous workload and seasonal pressure, the accountant may not ask every question. Therefore, be prepared to supply certain information, along with your receipts and T4's or T5's.

The amount of tax you pay depends on a number of key facts that your accountant should know. Marital status and exact age are crucial as these affect possible tax credits or deductions. Your children, depending on their ages, create numerous tax credits and deductible expenses. Accuracy is essential; there is no room for approximation.

If you were employed at several jobs, be sure that each employer is listed in your return, even if you did not receive a T4. You are responsible for paying taxes on earned income and your accountant must be aware of every dollar that you earned.

If you own a business, compile a detailed list of every possible expense and revenue. Your accountant can decide which are not relevant, if any. Don't make assumptions by yourself; let the professional decide.

List all your financial holdings, including any overseas investments. With all the pertinent information available, your accountant can determine your tax liabilities. Similarly, don’t forget to list "non-employment" income such as rental income, capital gains from sale of property, etc.

Finally, don't forget medical expenses. Keep all your receipts for treatments, medications, insurance, etc. You paid dearly for your health and some of the expenses may return to you.

Spend some time researching tax credits and benefits. If you're not sure whether you are eligible, ask your accountant. It is better to err on the side of caution. It's easier to remove some numbers but much harder to add them if they were never included.

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How Can I Find a Good Accountant?

2010-05-05T19:52:00.000-04:00

May 2010; the tax season is behind us for another year. If you are like almost half the Canadian population, you prepare your own taxes each year. But, as the Canadian tax code is growing increasingly more complex, a greater number of Canadians are seeking professional assistance from accountants in order to reduce the risk of paying unnecessary taxes.

Locating accountants is relatively easy. Finding the accountant suitable for your specific needs is far more difficult. Canada boasts three professional accounting bodies whose members are certified to serve the accounting needs of the nation. However, each organization has different standards and requirements for membership. Therefore, if you are shopping for an accountant, it's best to decide precisely what your needs are and interview prospective accountants carefully.

By far, Chartered Accountants (CA's) are the best trained accounting professionals. Only CA's can audit and sign financial statements. Roughly 40% of CA's in Canada work with the public, while the remainder is employed in the private sector, government, or education. Although advertisements for CA's will make many claims, it is wise to get several references.

In addition to CA's, Canada also has 37,000 Certified Management Accountants (CMA's). Generally, CMA's do not have private practices but, rather, work in large organizations, monitoring and interpreting operating results to help management develop operating strategies. Nonetheless, a CMA should have adequate training to help a small business or a self-employed individual with basic tax management and preparation.

Finally, Certified General Accountants (CGA's) offer a little something for everybody, working both in private practice as well as corporate or government settings.

Whomever you choose, your best bet is to ask friends and colleagues for recommendations. Also, take the time to interview at least three prospective candidates. Be sure that the chemistry is right between you. But, as much as possible, try to be your own accountant. A wealth of information is available online today. If you can't do it yourself, gather as much information as possible so you know what to request of your accountant. By learning to prepare your own taxes, you'll gain valuable insight into managing your everyday financial affairs.

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How to Make Yourself Invaluable to the Customers

2010-05-04T10:16:00.000-04:00

Let's face the facts. If you ever believed that attracting new customers was your biggest business challenge, you were sorely mistaken. Winning customers is less than half the battle. The bigger challenge, most business owners would agree, is how to keep them. After all, if you devoted most of your energy in trying to attract a customer to you, logic dictates that someone else is also trying. Therefore, you have to work extra hard to retain that customer, rather than their moving to the competition.

But, how do you put that theory into actual practice? If you have developed a successful service or product, chances are very good that your competitor is working on an improved version. And, the improved version just may sway the customer from you to the competition.

The human aspect is a vital component of success. You have to create an environment that a customer will regret leaving. Certainly, business is about sales and strategies, finance and finesse. It's also all about people. Becoming more than a supplier of goods and services is the secret link. Learn to appreciate that your customer has needs outside of normal office hours. Be ready to go the distance for your customers and they will remember. Make their concerns your concerns, even at the risk of having a major headache. Also, think outside the box. How can you help your client's business, above and beyond what you already supply? Work hard to make yourself an extension of your client's enterprise. The customer should know and feel that you can always be counted on, no matter what or when, even if they only need advice. True, talk is cheap but it can be an investment with a fantastic return.

From the first time a new customer comes through your door, approach the moment as the start of a long term relationship. If you proceed along those lines, you will have laid the foundation for a bright future.

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The Key to Customer Relations

2010-05-02T11:05:00.000-04:00

Here's a timely riddle. What is the definition of a terrific sale with no customers? The answer is – Useless.

The dust has not yet settled on the recent recession yet tomes have been written, countless lectures have been delivered, and editorials that can bring a tear to your eye have become the fashion. Yet, when all is said and done, pointing fingers and laying blame will change little. Unless we walk away from the financial warfare having learned how to prepare for the next time, all will have been for naught.

A common misconception was that retail failures were due to customers not shopping. That is not exactly correct. While true that consumer spending was reduced, it did not stop. There is always a need to purchase. However, shoppers became far more particular about what they purchased and where.

A secret to retail success lies in the relationship between the vendor and the customer. Consumers are far more likely to continue supporting a particular establishment when they feel an emotional tie. As such, building a strong bond with your customers is your best strategy. They will be far less likely to abandon you, even when times are bad.

It is a mistake to think that "the sale of the century" will drive traffic your way. Certainly, you may encounter a one-time success. But, after the sale ends, customers are far more likely to return to the friendly merchant who places an emphasis on efficient, courteous service. Customers prefer to frequent establishments where they feel like someone, not something. If you always stand behind your products and services, people realize that you are providing true value. Keeping your customers satisfied – no matter how difficult that may sometimes be – is the key to customer longevity. And, at the end of the day, that puts money in the bank.

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Business Plan: Change As Needed

2010-04-28T13:05:00.001-04:00

A business plan is a vital management tool. It allows you to create a road map of your business and look ahead while, at the same time, plot the necessary steps to achieve your goals. However, paraphrasing the poet Robert Burns, the best laid plans of mice and men often go askew. How true in business.

The world has learned much from the recent recession. One of the more important business lessons that the recession has taught us is that nothing is guaranteed. How many of us watched as financial giants, titans of the business world, tumbled like a house of cards? Who would have envisioned the swift changes that changed the way we live, not over a generation but over the course of a year or two?

Change is the key. The businesses that best survived the recession were those that understood the necessity of change. A business plan is not set in stone. Rather, as a useful management tool, it should not be allowed to gather dust. Just the opposite. It should be, and can be, changed. Business, like life itself, is a rollercoaster. Even if some of the ride is scary, you can't get off in the middle. You need to be flexible and allow yourself to adapt to new situations.

If you see a new business opportunity, change your business plan to incorporate it. Allow yourself the flexibility to explore new options. Don't be afraid to try new ideas. Sometimes, even bad situations can create new opportunities. If your plan went awry when the markets went in a different direction, turn everything around to incorporate the new reality. You may wake up one day and realize that your goals are no longer attainable. Don't try to change the world to meet your goals. Change your goals to accommodate the world. The most successful entrepreneurs have learned that opportunities present themselves and the winners are those who seize those opportunities. Always use the situation at hand to your best advantage.

Try business plan software to help you get organized!

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If You Fail, Try, Try Again!

2010-04-26T20:59:00.000-04:00

Legendary football coach Vince Lombardi once said, "Winning isn't everything; it's the only thing." While the coach may have been an inspiration to his players, was he also stating a mantra for everyday life?

As children, we often were told by parents and teachers to learn from our mistakes. Would that life were so easy to enable us to succeed after every failed attempt. Anyone who has ever established a business will attest to the fact that the goal of success is not always realistic. Business is a mélange of so many details; many of which are beyond our control yet have a direct influence on our business. The fact is that winning all the time simply is not possible (with all due respect to Coach Lombardi). The question is what you do with the failure. Perhaps it is better to quote from the Coach who also said, "The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will."

Canadians often compare themselves to their neighbours to the south. Yet, despite the many similarities, Canadians and Americans differ greatly in their respective business cultures. In both Canada and the U.S., for each business success story, there are dozens of failures. In either culture, entrepreneurs prepare and plan, hoping that they will be the next Fortune 500 leader or, at the minimum, establish a profitable business. Some succeed, some don't. The different reactions, though, are startling. Canadians tend to view a business failure as the end of the road. Americans, on the other hand, accept failure as part of the learning cycle and build upon the knowledge gained. The Canadian accepts his fate and the American drives forward.

Canada may be recovering well from the recession. Yet, it seems there is still much that can be learned from the American business community.

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Canadian Tax Deductions to Keep in Mind

2010-04-25T14:53:00.000-04:00

Get ready, Canada – April 30th is rapidly approaching. As most Canadians are aware, this auspicious date heralds the end of the tax season for the previous year. It is your last opportunity to make any adjustments to your taxable income and, hopefully, reduce the tax due.

Tax deductions exist within the legal system to allow a degree of parity amongst taxpayers and create a balance between earned income and the relevant taxes. However, as most accountants will point out, although the government will allow you legal deductions on your tax return, they will not contact you to point out possible deductions that you missed claiming. Therefore, research and consulting may be worth money in your pocket.

Here are a few sample deductions you may have missed:

Certain adult family members living at home can reduce your taxable income. If you have a relative over 18 with a physical or mental disability, and they live with you, you can deduct more than $4,000 of your taxable income for the expenses incurred for them.

Do you work from home in your rented apartment? If you have dedicated workspace at home, and work there at least 50% of your time, a portion of your rent and maintenance expenses may qualify as a tax deduction

If you are required to use your own car for business purposes, and do not receive a nontaxable allowance from your employer, you can deduct a portion of your auto expenses including lease payment, loan interest, maintenance, licence and repairs.

Who ever thought that your hobby may be tax deductible? If you earn some side income from your hobby and travel in order to do so, a portion of the travel expenses can be claimed against your taxable income.

A person who drives for a living can claim a portion of their food expenses while traveling. Similarly, when you travel for work, it is expected that you need lodging and showers. These, too, are deductible expenses.

If you are filing a simple return, it may not be necessary for you to incur the expense of a professional tax preparer. The Canada Revenue Agency maintains a highly informative website. On the other hand, if you feel you may be missing something, consult with a professional. After all, as honest hardworking Canadians, we all pay our taxes. But, we wouldn't mind paying just a little less.

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Customer Red Flags to Watch Out for

2010-04-21T21:21:00.000-04:00

If you are in business, you know that you have to constantly be on alert on all fronts. You try as hard as you can to plan and operate your business with clear guidelines. Sometimes, though, all the planning cannot prevent the unexpected. Many business leaders will tell you that the problems from outside are the biggest challenge.

In order for you to operate, you count on suppliers for goods and services. Your cash flow is dependant on timely payment by your customers. Any disruption from your suppliers or customers can be harmful to your operations. Continued disruption can become fatal. However, by being vigilant and spotting the early warning signs of potential problems, you can avoid trouble before it happens.

Keep abreast of a customer's payments. If the payments start becoming delinquent on a regular basis, they may be in trouble. Don't wait, though, until they stop paying. Open up a dialogue early to help you collect payments while their doors are still open.

Another warning sign is commonly known as nit-picking. You owe a customer a small credit and they refuse to pay their large bill until the credit is received. This stalling tactic should indicate to you that all is not well, as they could obviously just deduct the credit and send the balance. Perhaps, the customer suddenly begins sending you the balance in several payments, without consulting with you. Your early warning signal should be blaring loudly.

Have you noticed that there has been a large turnover of employees at your customer or supplier? Is this a sign that the passengers are jumping ship before it sinks? When you called to speak to someone over there, the usual perky, friendly reception was replaced by a rather laconic, curt reply or a disinterested, half-hearted response. Be on the alert and assess the situation carefully. You need to protect your interests.

Keeping one step ahead of the storm can be your best insurance plan.

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Keeping a Handle on Your Business

2010-04-20T20:02:00.000-04:00

Operating a business successfully has often been compared to a high-speed train. When it runs at peak performance, it arrives at its destination on time. However, if it sits unused in the station, or is not maintained properly, it will cease running well and ultimately break down and fail completely.

Studies have shown that more than half of large business failures result from poorly designed business strategies. Many business leaders have the drive and desire but fail to properly assess the market or their abilities. It is not uncommon for a thriving business to adopt a new idea on the assumption that their notoriety alone will make it happen. "Biting off more than one can chew" has led to the downfall of many business giants.

Another common, and sometimes fatal, error is operating without any accountability. Even the boss has to answer to the board. When decisions are accountable, it makes them open to review by others and allows other sets of eyes to detect possible flaws. The smallest of companies – even one-person operations – should consult with someone else on major decisions. After all, none of us is perfect.

Sometimes change is necessary. Companies that have dominated certain markets have to change with the times or market conditions if they want to maintain their position. Failure to adapt can be suicidal, as there is always someone waiting in the wings to pick up the slack.

Leadership is a 24/7 position. Your employees look up to you and receive their inspiration from the top. A strong leader motivates by example. Failure to convey positive attitudes and emotions can lead to the downfall of your business. Even if your business takes a downturn, you need to continue inspiring your employees to work together with you to overcome. If you appear downtrodden, you can't expect your team to pick you up. The ship will go down with its captain.

Keep a handle on your business by charting your goals and progress. By maintaining control of a situation, rather than it’s controlling you, your train will speed forward to its next destination.

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How to Use Failure to Your Advantage

2010-04-18T17:46:00.000-04:00

The word "failure" has negative connotations. It is hard to think of anything positive when discussing failures. Yet, many business leaders will tell you that failure is not the end of the world, nor is it only negative. While a business failure certainly implies setback, it also leaves the door open for improvement, change and opportunity.

American business leaders have embraced the opportunities presented by failures while Canadians lag behind in this respect. The inability or unwillingness to compete is a common denominator of many Canadian business disasters. One of the first lessons to be learned from a business failure is not to cut back but, rather, to dive into the marketplace and compete with all your might. Learn from failure and allow it to be the catalyst that is your driving force. In California's Silicon Valley, business has embraced the concept of "failing well." You made good decisions but circumstances were beyond your control. If you are good at what you do, you'll eventually succeed. In Canada, the opposite is more common. If your business attempt failed, you'll have a very tough time securing capital for another venture.

Failure in business can be one of your greatest teachers. Successful corporate leaders have learned from their mistakes and impart that wisdom to their employees as well. By sharing this wisdom with one's staff, it carries the message that even the boss is not perfect. Moreover, it encourages staff to also learn from their mistakes. Every successful mega-company started small and did not achieve greatness overnight. When your staff appreciates the growing pains of a company, they can become part of the driving force to continue propelling the business forward.

This doesn't mean that one should create a culture that focuses on failure. Just the opposite is true. A business environment should strive for success. Ultimately, that is the goal that we wish to achieve. However, every successful path has setbacks and failures. Learn to appreciate that none of us is perfect and we can learn something new everyday. The only way to avoid failure is to stop trying to achieve. Use every setback to your advantage and ultimately you will win.

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How the Self-Employed Can Save on Taxes

2010-04-16T13:18:00.000-04:00

If you are like more than two million Canadians, you own your own business, either fulltime or part-time. Despite the sometimes heartaches of being self-employed, there are many advantages. Many entrepreneurs, though, are unaware of the various tax benefits available to them. In fact, running your own business can increase your after-tax income and contribute to family wealth.

Entrepreneurship and self employment promote a spirit of innovation, ultimately contributing to economic growth and vibrancy. As such, the government encourages entrepreneurship by taxing it at lower rates than regular income.

It is not uncommon for a new business to incur losses as it gets off the ground. These losses can be used to offset revenue from other sources, assuming you have a reasonable profit expectation as the business progresses. As your business begins to turn a profit, you can incorporate and the profits can remain in the corporation as a reinvestment in your operations. It is also possible to leave the profits in the business if you do not need a salary immediately. Thus, you can defer paying personal income tax. A salaried individual cannot schedule when to pay taxes. However, when you are self-employed, you can time payments to yourself when the tax payments are to your benefit.

Profits held in the corporation are taxable in the year they are earned. But, the corporate tax rate is low on the first $500,000 of active business income. While rates vary between provinces, all are below 20%. Personal tax rates on comparable amounts can be as high as 45%. It is also possible to pay salaries to family members in the business and have it taxed at their lower rates. Another possibility is to pay dividends to family members who own shares of the company and, thus, benefit from capital gains exemptions.

There are numerous possibilities for self-employed Canadians to benefit from management of taxes and income. All possibilities and options should be discussed at length with your tax advisor.

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Ways to Finance Your Business

2010-04-09T15:23:00.000-04:00

With so many types of business financing available today, it is advisable to check carefully which type is best for your specific purpose.

The most traditional type of financing is debt financing. This is a straightforward loan that is repaid with interest over a certain pre-determined period of time. Generally, it is not an unsecured loan and will require some form of collateral against default. Debt financing can be either short or long term.

Your business may qualify for a line of credit. This loan is generally attached to your chequing account and can help when your cash flow fluctuates greatly. Some business entrepreneurs have secured lines of credit using their personal assets as collateral.

The easiest money that is available quickly is borrowing from your credit card. Although the cash is available immediately, the rates of interest are extremely high compared to commercial loans. This truly should be a last choice option.

Often, a supplier of equipment or machinery will offer financing for your purchase by providing payment terms of 30 – 45 days or extended payment plans with interest. Merchandise is sometimes sold on consignment whereby the buyer only pays for merchandise that is actually sold.

Equity investing involves funding by investors who, in return for their investment, receive a share in the ownership of the business as well as a percentage of the profits. Generally, equity funds are unsecured against the company's assets. If a business owner is trying to raise a large amount of money, it may be possible to use both equity funding and loans against assets to secure the needed amount.

Depending on the type of business you own, there are various types of equity funding available. Angel investors generally are wealthy investors who invest in small businesses and are looking for a healthy return on their investment. Venture capitalists primarily invest in high-tech or leading edge businesses in return for partial control and management.

Large businesses seeking finance may sell shares of their business on the stock exchange. Profits from the company's growth are shared among the shareholders.

Whichever method you choose, be sure that you and your financial advisor examine all the options carefully before any cheques are written.

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Tips for Business Financing

2010-04-07T13:23:00.000-04:00

The bottom line is that most businesses need some type of financing, if you don't have enough personal capital. There are numerous options available in today's market. Before borrowing from any source, conduct thorough research to learn how much the loan will actually cost and if that is the best option for you.

Before you approach any type of lender, you will need to prepare or update your business plan. Every lender needs to be convinced that you have the ability to repay the loan. A well written, detailed professional business plan will demonstrate to the lender that your business will indeed generate profits to enable repayment.

In some cases, a lender may require more collateral than the business can offer. The business may seem to have potential but the actual projected profits are slightly questionable. You may be asked to put up personal assets (car, home, personal investments) as additional collateral for your business loan.

Keep in mind that lending money is based on assessing risk and return. You may seem like a terrific person but that will only get you through the pleasantries of meeting with the lender. Getting down to the issues, the lender is in the business of lending money and making a profit from that loan. Therefore, you will have to demonstrate that your business does not present a risk and, moreover, that the loan will be guaranteed and will yield the return that the lender is interested in earning. Anything less than meeting the lender's expectations may result in not securing the loan or investment.

As a business loan or investment can be quite complex, and there are various tax issues to be concerned with, both personal and business; so it is most advisable to discuss all your options with your personal tax advisor. Although your business may need an immediate influx of cash, take the time to examine and consider the best options for your needs.

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What Government Funding Can I Get for my Business?

2010-04-04T13:35:00.000-04:00

If you are like most Canadians in business, you've probably wondered if you can ever get something back from the government, after you've paid all those taxes over the years. It seems only fair.

The best situation is discovering that you are eligible for a government grant or contribution. Grants do not need to be repaid and contributions are only repaid in certain cases. The problem is that these are few and far between. Generally, grants are available for specific programs and have very specific criteria. For the most part, grants usually are provided for specific industry sectors or for certain demographic groups.

On the other hand, there may be other government options that are applicable to your business. For example, you may be eligible for a government loan guarantee. This would enable you to get a loan that you might otherwise not receive approval for. With the government behind you, the bank will be far more willing to talk with you.

If you hire employees that have certain characteristics, you may be entitled to wage subsidies to help offset their salaries. Check with your tax advisor who is currently on the subsidy list and whether your business can benefit from these employees.

If your business makes certain investments, you may be entitled to a tax credit or refund. Check the current information with the relevant tax authorities.

If your business does not qualify for a commercial loan, you may be entitled to a loan from various government departments. Also, these government offices sometimes offer loans to businesses at lower rates than commercial lending institutions. A little research may save you some money.

In general, before assuming that your neighbourhood bank is the only lending option that you have, check what's available from the government. You may be pleasantly surprised.

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How to Valuate Your Business

2010-04-02T09:34:00.000-04:00

There comes a time for many businesses when it may be necessary to find investors or a buyer. In either case, it will be imperative to assess the value of your business. Long before you approach a potential investor or buyer, you need to know exactly where the negotiations will begin.

Valuating a business is by no means an exact science. There are several common methods that can be employed. Each method uses different assumptions and, logically, each method will result in a different value. Obviously, part of the negotiation will involve agreeing upon the method employed to determine the business' worth.

Many investors prefer the Discounted Cash Flow method to determine the value of the business. It is based on future cash flows. By employing this method, the investor can see a projection of the actual cash that will come to the company and thus determine the investor's return on investment. A similar method is determining the Going Concern Value. This method compares the current investment to future cash inflows. The revenues of previous years are used to project future revenues, on the assumption that the revenues will not change drastically.

Another common method to determine the value of a company is based on assets. A determination of the book value of the company is quite straightforward. The company's net worth, or shareholders' equity, is determined based on the financial statements of the company. Quite simply, subtract liabilities from gross assets and the result is the net worth or book value.

A similar method is determining the liquidation value of the company, based on the company's assets. This method calculates the income from the sale of all the company's assets. The assumption is that equipment and land would be sold at a price close to their market value. Inventory and receivables generally yield a reduced value. A liquidation value is generally employed for the sale of a business, rather than investment purposes.

Whichever method you use, it is best to consult with a professional advisor who can help avoid mistakes that could prove costly.

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Customers at the Centre

2010-04-01T17:29:00.000-04:00

An all too common mistake of many businesses is losing sight of what is truly important. It is relatively easy to get caught up in strategic planning, marketing techniques, employee relations, technological upgrading, and a milieu of other items that are important to the successful operation of a business. But, when the dust settles, we tend to forget the most important element of our business – the customer.

The customer is the core of our business. Without customers, business is just…a business. It won't sell but it will be there, though not for long. In today's market, customers are bombarded with information and have more choices available than ever. Gone are the days of Pop's General Store. Pop sold everything and when he didn't, you made do without. Today, it's a buyer's market. Customers can shop for virtually everything they want. Internet shopping makes the world their marketplace. In order for a business to attract buyers, they must be able to reach out to that customer in a way that will get the business noticed.

Find out what the customer really needs or wants, not what you think. What issues are affecting the customer that will cause them to need your product or service? Why should the customer identify with you?

Sometimes, the customer is unsure of what they need. They may know that they are in a certain situation and "something" could help them, if they only knew what it was. This is a chance for your business to fill that void. Customize your service or product to help the customer.

Think outside the box. Inside the box is your business. The customer is outside. Find out what your business must do to break through the constraints. Remember that you need the customer more than they need you. However, when you can create the link that makes their needs your needs, you'll put your business on the winning track.

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What Should Go in My Business Plan?

2010-03-28T20:46:00.000-04:00

A good business plan is more than merely a document. It is a carefully designed outline of your business, a veritable blueprint that accurately describes your business and all its components. Business plans differ in length and detail, depending on the nature of the business. However, there are certain basic elements that a good business plan should contain.

Begin with the Executive Summary. Many consider this to be the most important section of the plan. It provides an overview of the key points of the business. It should contain highlights from all sections of the plan and should be written in an interesting, concise manner, not to exceed two pages. Often, the reader will only read this section. If it doesn't grab the reader's attention, they may not go further.

Follow this with a detailed description of the business opportunity. In simple language, describe what this business will do and why it should succeed. Why are you the right person for this business? What is your vision?

You have done your market research. Put the results into a detailed marketing plan. This section of the plan should demonstrate how you plan to enter the market. How do you plan to promote your business? What are your pricing and sales strategies? How large is your potential customer base and how do you identify them?

Build an organizational chart. Describe the key members of your team and what will be their roles. Include the qualifications of the leading managers, including you. This section should clearly convince the reader that this business will have the team to make it happen.

Follow the organizational chart with a description of the operational requirements. How will the business operate? What are the physical requirements? What types of technology will be employed in the daily operations?

Now comes the number crunching. The financial section should contain a detailed outline of your financial forecast for the first three to five years. The first year should be far more detailed. An investor should see that you truly understand the business. This section should contain cash flow statements, profit and loss forecasts, and sales projections.

Remember that the language of a business plan should be directed to an outsider. Make the plan realistic and believable. Invest your time in preparation as this document may be the key to launching your business.

More help on setting up a business plan

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Do I Need a Business Plan?

2010-03-25T13:41:00.001-04:00

A business plan sounds like a complex study. In some cases, it may be. But, the question is asked if every business truly requires a business plan?

The answer to that question is "yes", more often than not. A viable business, rather small or large, should make use of a well-designed business plan at some point in time.

Starting at the time when the business is still but an idea, a business plan is an excellent way to organize ideas. It allows you to create a filing system in which the various cogs and wheels begin to come together into a working machine. Long before you begin actually getting the idea off the ground, your business plan allows you to draw a picture of your idea – so to speak – and stand back to take a look if there are any mistakes or problems. Also, none of us are perfect. Especially if we are dealing with a complex idea such as a new business, it is best to have others review our concepts. Your business plan is an excellent way to allow others to help you develop your thoughts and use their feedback to improve what you have begun.

As your business begins taking shape, you will need the business plan to help interest possible investors. Your bank may wish to see the plan when you begin discussing credit with them. Perhaps you have decided to take in a partner. The business plan will be dissected at your meeting. The business plan is the blueprint of your business. It should accurately describe the concept. It will discuss the goals, milestones, financing, cash flow, staffing, and virtually every aspect of your business. It is the theoretical side of the entity. Also, a good business plan should be updated as the business begins operating, especially in relation to financial projections.

Invest the time to write a proper business plan. It is an investment that will have a guaranteed positive return.

Here is some business plan software to get you started.

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Where Passion Can Lead

2010-03-23T13:20:00.000-04:00

In today's fast paced, high tech world, young people at the beginning of their careers face a tremendous amount of questions and, sometimes, stressful issues. Perhaps one of the most perplexing questions facing students today pertains to career direction and the road to success.

Many would like to believe that pursuing certain courses of study or entering specific fields is the guarantee to a stable, lucrative career. Would that were true; universities would be an entirely different entity. But, the truth is that there are no guarantees for success. Hard work is still a required pre-requisite for advancement. Yet, if one were to ask business executives for their advice, many would say that passion is an important trait to have.

Of course, it is advisable to do some research when planning a course of study. Look ahead and see where the markets are heading. Which fields are emerging and will present the best employment options several years from now? Which fields have room for advancement? Follow current events and see where money is being invested these days. But, there is still more to take into account.

A career should be more than a job. A job produces income but life is more than just money. And, over time, a job that is just a job starts to pale. Looking ahead, one must imagine where they would like to be and what they would like to achieve. Achievement requires personal drive and that requires a degree of passion. It is passion that gives the personal drive to forge ahead and get the most from your career. An MBA is an important academic credential. Yet, there are many people who have succeeded in business without an MBA. Their passion for success has given them the drive to excel and rise above challenges. Passion is the adrenalin that makes each day a new and exciting experience. And, it is passion for your career that gives you the winning edge over everyone else.

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Learn to Manage

2010-03-21T13:29:00.000-04:00

Congratulations! You've been promoted to, or hired for, a management position. The job is waiting for you but what about the people? No workplace is complete with out its nuances and office-politics. If you think that technical knowledge is enough to succeed at your new position, time to wake up. There's a lot more to know.

Understand that management is "them" of the company. If you have moved up the ranks, your relationships are about to change. You simply cannot allow yourself to be friends with the same people you have to manage. Friendly yes; friends no. Anyone who has made the mistake of retaining those close friendships and then had to fire one of those friends will understand. In order to manage people well, you have to remain objective.

From the onset, let the staff know what your expectations are. How are they to be evaluated? Learn what their goals are. Also, learn to consult with your staff. Their experience is most valuable. At the same time, be sure to clarify what upper management expects of you. A common mistake is to hire managers but not supply them with all the tools they need. Don't be afraid to admit that you don't know everything.

If you see problems with certain staff, especially those who may be rejecting your new position, address the problem immediately. Your popularity is not the concern. That has to be built over a period of time. Your goal is to manage an effective team and that starts day one. Don't remain aloof. Your office is your workplace, not a private sanctum. A sign of a healthy situation is well tread carpet from that office leading in both directions.

It is often effective to listen to office gossip, not get caught up in it (or necessarily believe anything). The informal workings of a workplace are part of its lifeblood. You have to know the who's who but don't take sides, just listen. It would be a mistake to assign two employees at loggerheads with each other to a mutual task. Perhaps you can help them solve their differences but work comes first.

Step by step, establish your authority, build your contacts and learn to listen. Effective communication in all directions is your best ally.

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Dealing With Your Boss

2010-03-19T17:28:00.000-04:00

There are many different names in the workplace vernacular for dealing with your boss. But, when your goal is to get the job done well and contribute to your own career advancement, there is only one thing that really matters – know how to be as effective as possible.

As business had become ever so complex over the few decades, so have the management systems and strategies behind them. In the ever-relenting battle of the business world, the need to thrive and survive has created new management sciences virtually uncharted a business generation ago. The traditional flow chart and pyramid have been redesigned, allowing for much greater flexibility but also margin for error.

In days gone by, the boss sat in the corner office nearby or, perhaps, one floor up. It was usually possible to drop in for a chat and get to know the person, as well as the position. In this age of instant global communication, it is quite possible for one's superiors to be located anywhere on the planet. Many times, the ability to interact personally is just unrealistic. How can one be sure that they are on the right track? Perhaps all the hard work is just preparing for a surprise bombshell of dismissal?

If you want to succeed, the responsibility is yours, not the boss. You need to create the conditions. Keep the lines of communication open and learn what the boss wants to hear. Don't be afraid to ask. Many times employees are afraid that the boss is only out to get them when that is far from true. Try to keep abreast of what's happening in your company. Your boss also has a boss. Find out what your boss needs and make the information available. Help develop a solid relationship based on mutual need and trust, not fear. Try to appreciate that the boss is probably busier than you so use time accordingly. When the relationship between the two of you is solid, no matter where you are, each of you can help the other achieve goals.

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The Challenges of Female MBA's

2010-03-17T11:45:00.000-04:00

With few exceptions, the business world has never been a bed of roses for women. In a society that still views business primarily as a "man's world," women, despite their capabilities and qualifications, continue to fight an uphill battle for equality that is due them.

A recent study conducted by Catalyst, a non-profit organization for women in the workplace, compared 9,000 male and female MBAs entering the workforce over a ten year period. 46 percent of the males received entry-level positions while 60 percent of the women were hired at an entry level, despite the same level of professional experience for both gender groups. Likewise, the men earned $4,600 more at their first jobs.

One of the reasons given for the parities is not prejudice but practicality. Most companies hire employees with a long term plan in mind. It is anticipated that young women entering the workforce after college will have children within a certain period of time, thus disturbing the succession planning of the company. Thus, businesses prefer to invest more in men, anticipating longevity with the company. Women, themselves, admit that family commitments may disrupt their careers and, therefore, they tend not to lobby and pursue the top positions.

The point was driven home in another study conducted jointly by the Columbia Business School and the Women's Executive Circle of New York. The study went beyond entry levels and found that the disparities plague women throughout their careers. In examining women's roles at the 100 largest public corporations based in New York, less than 11 percent of the C-level positions were held by women.

Women are making strides in the business world but the progress is slow. Companies do want equality but this will only occur when the business world attunes itself to the needs of the cultural world, allowing the business world to benefit from the many qualified and experienced women available, while modifying to meet the needs of the women's lifestyles.

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Border Frustration

2010-03-15T12:33:00.001-04:00

And there we have it – another dream dashed. The Canadian business community looked across the Atlantic and envied the open borders of the European Union. Imagine shipping materials and products between countries in a virtually hassle-free method. Every day, more than $1.5 billion in goods crosses the border between the U.S. and Canada. Thanks to the near state of panic of the American government, entering the United States has never been more difficult.

To be fair, the U.S. has cause to be concerned. The American nation is probably the number one target of terrorists worldwide. However, many have asked if the overly stringent security measures are not being employed in the wrong places. Are U.S. security measures doing more harm than good?

Take a look, for example, at the Great Lakes shared by Canada and the U.S. At the same time that kindly old grandmothers are having their belongings thoroughly searched, prior to being exposed to full body scans, a low level terrorist, with limited resources and minimal effort, can cross an open body of water between the countries in a canoe.

The auto industry, already in a troubled state, is suffering terribly from U.S. border restrictions. A foreign auto company can import 4,000 vehicles to the U.S. with a single customs clearance. On the other hand, the same number of vehicles manufactured in joint U.S./Canada ventures – where the complete assembly process may involve up to seven border crossings due to the integration of the supply chain – require almost 28,000 customs and security clearances!

For many of us who remember entering the U.S. many years ago using a library card for identification, those days are long gone. Passports are now required and lengthy, sometimes infuriating lines are now commonplace. As Europe moves to a common currency and mutual trust, the U.S. is building a deep moat around its castle.

The economic and commercial links between Canada and the U.S. are far too intertwined to ignore. As such, perhaps the nations' leaders should be searching for ways to punish the terrorists without punishing the innocent bystanders.
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More Capital for Women Entrepreneurs in Canada!

2010-03-12T11:20:00.000-05:00

Let us not be fooled! In this era of civil rights and equality for all, women entrepreneurs are still fighting an uphill battle with the business community. For the last 18 years, a federally incorporated, non-profit organization known as "Women Entrepreneurs of Canada" has been dedicated to serving the interests of established women in business.

In Canada, 40% of all new start-up businesses are owned by women. Across the nation, Canada's top 100 companies account for 1.5 million jobs. In comparison, companies owned or led by women account for more than 1.7 million jobs. Furthermore, the number of women-owned start-ups is growing at twice the rate of those by men. The list of comparative statistics goes on but the point is crystal clear. Women entrepreneurs are major players in the Canadian business market. Yet, despite their numbers and influence, women in business still play second fiddle to their male counterparts.

This point is driven home quite clearly when women seek capital for development and growth of their businesses. One reason for the restrictions on capital available to women is the tendency of women to own and operate smaller businesses that are slower to grow and are considered higher risks such as retail and service.

Be that as it may, Women Entrepreneurs of Canada have called upon the Prime Minister to realize the plight of women in business and to address the needs of this substantial segment of the population accordingly. They recommend that the federal government develop an economic assistance program aimed at women owned small and medium sized businesses. Furthermore, they propose that the government develop support programs for women to provide access to technology and management training. This support should also finance and promote international women's trade missions.

Aside from government action, women entrepreneurs should form business alliances to share information and resources as well as establishing joint ventures to bid on large contracts. Women in the business world should share information as much as possible and use their contacts and knowledge to help others advance the cause of women entrepreneurs across Canada.

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Lessons in Crisis Management

2010-03-10T12:53:00.000-05:00

It's easy to learn from hindsight. Many an individual has attained tremendous mental wealth from looking back. The big question is whether we learn from our past mistakes, not just gather stories of deeds unaccomplished.

Toyota's safety crisis has been the content of many a recent news item, ranging from tragedies to sensationalism to Congressional hearings. For those not directly affected by the issues at hand, there is still much to learn, especially in the realm of crisis management.

The business world will never be crisis free. However, in order to continue to thrive, managers must know how to best cope in a crisis situation. Failing to respond to the crisis at hand may prove to exacerbate an already difficult situation. There are several key steps that a company, and its management, should follow in a crisis.

The CEO must take immediate command of the situation. Even if the CEO is not a polished public speaker, the public must see that the top person is in charge and leading the company in its difficult time. Otherwise, it's a sinking ship with no captain at the helm.

As soon as possible, start the flow of information. Let the public know that the company has the situation under control and is doing its best. It's imperative to maintain credibility with the public. As difficult as it may be, a unified, hard-working front is crucial. Not having all the answers is legitimate. However, avoiding the situation is not.

Try to think several steps ahead. Experienced management should be able to anticipate what lies ahead in a situation. Be prepared, rather than be caught off-guard.

Don't make light of a serious situation. In a time of crisis, a company's place is to identify with the public. After a crisis has been resolved, the company will need to maintain its customer base. The public will remember if a company identified with them or only worried about itself. Loyalty is a two way street.

Thinking carefully about how and when to act is the key to successful crisis management.

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Should Politicians be Deciding our Fiscal Policies?

2010-03-08T14:27:00.000-05:00

It seems that the hurricane called the global recession is starting to lose steam and peter out. But, if you follow global weather patterns, you see that there are always after effects, residual shocks, smaller storms, etc. In short, no disaster seems to operate independently. There is always cause and effect.

So what caused this recession? After all, if you can isolate the cause of a disease, you can help prevent its recurrence. The near collapse of the US economy was frightening. The devastation caused by it harmed countless individuals and businesses alike. Many have not yet recovered. Who is to blame?

It's easy to say that the mega-bonuses within the nation's financial industry were the problem. However inappropriate these bonuses may have been (and continue to be), they were not, and are not, the root of evil. No, when all is said and done, the root of economic evil is lousy government policy. Government leaders, and their script writers, are excellent at describing the ill-gotten gains of the private sector. It is quite easy to divert public attention from the real problems at hand by placing blame at the markets whose goal is to earn money. How many millions of American homes are now in foreclosure due to a mortgage system that was manipulated by US government policy, rather than operated by the modes of free economy?

Imagine, for a moment, that the US government operated along the lines of a major for-profit corporation. The Senate and Congress would be the Boards of Directors and/or shareholders. The CEO and his staff would have to justify their fiscal policies and operate the business in such a way to please the directors and shareholders. After all, the bottom line is what truly matters. Sounds absurd, of course. On the other hand, can one imagine a mega-corporation continuing to function while juggling an operating debt of more than $1 trillion? Of course not. At the minimum, some change in fiscal policy may be deemed necessary.

But, governments continue to operate based on political need. Business will adjust to the times and weather storms as necessary. With a little luck and hard work from non-government entities, society will persevere economically and overcome the mistakes of its political leaders. If we want to avoid another recession, it's truly time that politicians stick to their business but leave the money matters to the professionals.

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Normalizing Interest Rates?

2010-03-05T12:01:00.000-05:00

With the end of the global recession now becoming more than merely a prediction, the time has come to begin the clean-up from the temporary measures that were a necessary part of the economy during the difficult financial times. In short, besides stimulus funds becoming part of the scenery, record low interest rates were also an everyday occurrence.

Interest rates, at near zero levels, were the Shangri-la of investors. Investors who could tap this virtually free money, profited well and the markets responded in kind. In a chain of events, this unprecedented boost of the markets helped restore confidence in the average household and greatly strengthened the ailing economy by fortifying its foundations. However, even the best of vacations must come to an end. Any student of economics will tell you that interest rates reflect and influence an economic situation. Artificially set rates will cause undue influence and possible damage. The current rates were set for an emergency situation. With the economic emergency now having been downgraded, the time has come to allow the markets to respond appropriately. The question now is the timing and magnitude of the normalization of rates. Having faced a near collapse of the financial sector in the Western world, it is crucial that the central banks of both the US and Canada time their adjustments accordingly. For example, towards the end of the Great Depression in the 30's, the US government pulled out its stimulus funds in a final push in 1937-38. This sudden move, due to improper timing, had a negative effect, pushing the US economy into a tailspin and sent the markets reeling.

Economists are mixed in their predictions as to the end of the rock-bottom interest rates. Most feel confident that neither the Governor of the Bank of Canada nor the U.S. Federal Chairman will allow a repeat of the Great Depression mistakes. However, even the latest of predictions for rate hikes is no later than early 2011. Some predict that rates will begin rising by this summer. In either case, investors should prepare themselves for a return to normalcy. The worst, we hope, is over.

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Female Entrepreneurs - Unite!

2010-03-03T17:09:00.000-05:00

No longer can it be said that business is a man's world. Female entrepreneurs are an integral part of the business world. According to a report from the Organization for Economic Cooperation and Development, Canadian women comprise 30% of business across the nation. This percentage is larger than any other country. In the United States, during a ten year period beginning in 1997, businesses owned by women grew at double the national rate of all U.S. private businesses.

So, the good news is that women are making their mark on business in substantial numbers. The bad news is that they are not using these numbers for any collective purpose or advantage.

There is power in numbers. However, most female entrepreneurs seem to prefer worrying only about themselves. An umbrella organization, Women Entrepreneurs of Canada, whose mandate is to create a more collaborative climate for women business owners, is fighting an uphill battle, as reported to a small core group of members at a recent meeting of the organization.

Rather than share ideas and efforts, the group reported that female business owners prefer to do for themselves and not share. Sharing resources and ideas is simply not the norm in female businesses, leading to duplication of efforts and a loss of a potentially powerful female lobby.

Men invest more time and energy developing their businesses. Thus, women cooperating with each other could greatly strengthen their businesses by uniting their efforts. Also, women are less confident than men in certain key business tasks and could certainly benefit by supporting each other to get over hurdles.

On the other hand, in a male dominated world, women still encounter certain prejudices in business. A strong female lobby could help push for changes in the business world that would lead to parity in general, while addressing the distinct needs of female entrepreneurship when applicable.

This organization, while small at present, is picking up speed and hopes to build a strong, influential coalition of female entrepreneurs to help the nearly one third of Canada's business community leadership.

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Canadian Debt - The Foreign Investment Choice

2010-03-01T12:34:00.000-05:00

Canadians, as opposed to many nationals around the world, were long accustomed to hearing reports of budget surpluses. What was once a source of national pride will now seemingly become but memories in the nation's historical archives. The recent recession has left both the national and provincial coffers in ruinous debt, and both are seeking ways to grapple with the need for cash to finance stimulus spending, the primary catalyst of the monumental deficits.

Ironically, while lawmakers must deal with the aftermath of the financial crisis and re-formulate fiscal policies in order to keep the deficits under control, investment bankers see this new situation as a unique opportunity to sell government bonds.

Based on recent figures, the combined national/provincial debt is estimated to reach $100 billion by the end of the current fiscal year. However, selling public debt in these staggering amounts is not as difficult as it may seem, even in a struggling global economy. Canadian debt is being gobbled up by foreign investors at a lightning pace.

It appears that international markets see investment in Canada as a wise choice. Among the Group of Seven countries, Canada has the best fundamentals; a strong, vibrant currency; and is rich in valuable natural resources. Once the dust settles from the recession, these factors will leave Canada well positioned. Wise investors see this as an ideal time to align their investment dollars with strong future potential.

Investment bankers admit that 2009 presented a highly volatile market, with each month differing sharply from its predecessor. But, when all is said and done, the nation's top investment banks, working hand-in-hand with both the federal and provincial governments, have managed to sell the vast majority of government bonds issued, primarily in foreign markets.

The need for cash, combined with the demand for strong investments, led to some unique investment situations for both the federal and provincial governments. However, just as the aftermath of the recession demanded new ideas to deal with new situations, so did the investment world rise to the occasion and help the governments get the best deals possible.

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Did Lack of MBA Ethics Cause the Recession?

2010-02-25T13:03:00.002-05:00

It was inevitable that one outcome of the recession, aside from the devastation of the economic hurricane, would be deciding who or what truly was to blame. The truth is there is no one factor or person. However, as the smoke begins to clear, there is increasing blame being attributed to the financial leaders of our generation, specifically the mighty who have fallen.

We have all been witness to major financial scandals over the last couple of years. Many of these scandals have been perpetrated by key figures in the upper echelon financial world, individuals with impeccable credentials, or so we thought. To the dismay of both the public and academia, a good number of these individuals bore MBA's – seemingly their license to direct the financial community – from some top business schools.

While no pattern has emerged, a number of questions have arisen regarding MBA programs and the students therein. While there are no guarantees, an MBA from a top business school is a tremendous stepping stone to a lucrative career. The question is how desperate are students to obtain that coveted degree.

In a 2006 study released by the Academy of Management Learning and Education, an astonishing 56% of MBA students admitted cheating, far exceeding any other major discipline.

The focus of many major MBA programs is quite straightforward – your sole obligation is to make as much money as possible for your stockholders, within the parameters of the law. Unfortunately, a decided absence of ethical teachings has caused many graduates to ignore the legal obligations of earning money. The argument that students want to earn as much as possible in order to repay their expensive education doesn't hold much water. Were that the case, medical students would be dropping like flies in insurance scams.

Many business schools acknowledge that a lack of classes in business ethics may be part of a larger problem and some, indeed, have begun to change their curricula to reflect a necessary change. Others schools have tightened their application processes to help weed out potential "future problems." Overall, the fall of the giants has helped remind us that, in a democratic society, we are all equally accountable for our actions.

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Hope on the Horizon for the US and Canada

2010-02-23T11:32:00.000-05:00

The news is out – the recession is over! Or is it?

Whatever you read today seems to have a different opinion. Some say that the worst is behind us and we're recovering very nicely, thank you. Others say that we're experiencing a temporary lull before the next storm. Optimists say we can return to our previous standards of living. Pessimists say that we should learn from our mistakes and prepare for the next rainy day.

The truth probably lies somewhere between the two. The fact is that the best of economists will tell you that predicting the future is virtually impossible. Yet, when the figures are checked and re-checked, the recent economic indicators are rather positive. Forget the major "what-if" theories and focus on what's really happening.

Recently released figures for the final quarter of 2009 indicate a growth in the GDP of both Canada and the U.S. In the U.S., the growth is attributed primarily to inventory rebuilding. While some consider that a temporary measure, likely to taper off, others point out that the need for increased inventory is due to resurgence in consumer spending. True, consumers are still spending their money more cautiously but the figures remain positive.

Not just consumers are spending more. Business investments grew by 2.9% in the final quarter, as compared to a nearly 6% drop in the third quarter. Equipment and software investments rose by a whopping 13.3% for the quarter. Also, net exports added to the U.S. GDP, indicating that the Americans are now using their weak currency and high productivity to their benefit in foreign trade.

Back in Canada, economists have re-examined all the figures and are pleasantly surprised that economic growth in the fourth quarter exceeded 4%, well above the forecasts. The Canadian figures continue to rise well, indicating that recovery is progressing.

It's hard to tell but, for the time being, after a treacherous journey, both Canadians and Americans are safely on the way back home.

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How to Perk Up the Disgruntled Employee

2010-02-21T15:05:00.001-05:00

You wonder what happened. A couple of years ago, you hired a key employee who seemed like the whiz kid that would be a major asset to your team. At the onset, it worked. But, as time wore on, the shine began to tarnish. The "whiz" became a "was." It's easy enough to say the employee should go home and you'll find another rising star. But, many managers agree that you would be mistaken. Training new employees is costly, both in time and money. Moreover, if you originally spotted talent, chances are that the talent is still there. The question is what happened along the way and how can you improve the situation.

In the hustle of daily business, managers often tend to focus on the most pressing issues and ignore the secondary or tertiary ones. However, our employees are among the basic raw materials that allow the business to operate. When you consider the fact that the majority of an individual's waking hours are spent at work, it is vital to make sure that the person enjoys his work. There is a direct correlation between performance and employee satisfaction.

Perhaps the whiz kid just became part of the background. You assumed that outstanding performance would just come naturally to such a person. But, what about providing positive feedback? Has a job well done been rewarded, either monetarily or through other recognition? Have you taken the time to sit and chat every now and then? Find out what is bothering that employee. You may discover that a breakdown in the managerial chain of command has affected this person and left a feeling of disgruntlement. In that case, track down the true source of the problem and you might correct the situation. A simple discussion may reveal that your employee needs additional skills in order to perform the task at hand. In that case, attending a course or a change of task will rectify the problem.

Managing an effective staff requires time and skill. It's not enough to give assignments and sign paycheques. Remember that a loyal staff is vital to your company's success. Invest the time and energy to develop and protect that loyalty.

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How to Deal with the Know-It-All Employee

2010-02-16T14:19:00.000-05:00

Practically every manager has encountered this employee. An average worker has a self opinion of extreme competence. Yet, despite a decided lack of skills, this employee will make decisions independent of any managers or co-workers.

Different styles of management will handle this situation in a variety of manners. Some would say that this type of behaviour must not be condoned and would immediately dismiss the employee. However, a more experienced manager does not rush to fire employees. After all, one needs working, trained employees, rather than terminated ones.

It is imperative to thoroughly assess the situation. Has the employee's decision making caused damage to the company, either in a business sense or by demoralizing other employees? If so, your response may be somewhat harsher. If not, a subtler tone may be in order.

Speak to the employee. Find out what makes the person tick. Were they trying to cover up a lack of knowledge or simply being irresponsible? Do you think, after speaking to them, that change is possible or is this merely the person's personality? If change is possible, go for it! Sometimes, the mere fact that a person has been noticed can trigger a change, especially if the employee knows that they are being watched. Or, perhaps, a change of scenery may help. Move the employee to a different task. Another tactic to consider is the chain of command. Try allowing the employee to consult with you, rather than a supervisor. The feeling of importance may counter the feelings of resentment or punishment for having been caught doing something wrong.

Each case, undoubtedly, is different and there is no clear cut recipe for success. However, the bottom line is that you have to make a business decision and do what's best for the company, not for your feelings. It's not always easy to do what's right but management is all about making the tough decisions.

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Public Speaking: No Joke (Unless You Can Deliver it Well)

2010-02-14T12:29:00.002-05:00

Public speaking does not come easy for some people. For others, it's a snap. The more experienced speakers have learned the secrets while many novices will wake up that morning with a major headache.

Making a presentation, or giving a speech, is part of the business world. But, in order for your presentation to achieve its goal, the delivery must be successful. This requires your connecting with the audience. Experience has demonstrated that a common technique, when applied correctly, is opening with a joke.

A joke, when delivered properly, can break the ice with the audience. It sends a message that the speaker is here to speak with us, not to us. Similar to the co-worker that attracts a crowd at the coffee machine by telling a good joke, you can attract the crowd in front of you to listen to you.

Of course, this is not an opening for a standup routine. Neither should you use the podium to tell the latest racist joke that you heard at the bar last night. The motto is KISS – keep it short and simple. It makes good sense to do some research beforehand and try to learn what makes the audience tick. For example, a high tech joke will not work well for an audience of medical practitioners. But, a good doctor joke certainly will. Be careful, though, not to insult anyone in the audience. If you feel that they will appreciate it, try poking fun at the industry, but only if you're part of it. Outsiders are not usually welcome to do this.

Learn to read your audience. If you see that your joke is not going over well, abandon it (with a shrug for a last ditch attempt at a chuckle) and get on with the business at hand. Delivery is everything! You have to go with the flow of the audience. Sometimes, the audience is waiting for what you have to say. Other times, they may be waiting to leave. Do what you can, in a professional manner, to win them over. Telling jokes, like making a powerful, impacting speech, is an art. Learn the craft carefully and you can be quite successful.

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Buy American and Canadian Too!

2010-02-10T13:29:00.004-05:00

The American Recovery and Reinvestment Act of 2009 was the landmark US$787 billion economic stimulus package intended to jumpstart the ailing U.S. economy. While it contained a variety of elements, one of the more controversial clauses was the "Buy American" stipulation. In order to qualify for government contracts, U.S. companies were obligated to buy only from American suppliers and manufacturers.

As both the U.S. and Canada rely heavily on exports between the two nations, "Buy American" was met with strong opposition from both American and Canadian business. Supporters of the clause argued that America needed to boost sales and manufacturing at home. Opponents noted that supply chains north and south of the border are so intertwined that all parties involved would be hurt, not improved.

After months of deliberation between the nations, a multi-faceted trade deal has been reached between Canada and the U.S. All though yet to be fully ratified (the U.S. requires an executive order while Canada requires each province and territory to sign, as well as the federal cabinet), the agreement reflects the spirit of cooperation that has long existed between the two neighbours.

Canadian companies will now be able to bid on procurement contracts in 37 U.S. states. Similarly, U.S. suppliers will receive reciprocal access to provincial procurement. As the possibility of future U.S. federal funding is quite realistic, the current deal contains a commitment to fast-track negotiations on possible "Buy American" stipulations.

As a result of this reaffirmation of the strong links that connect the two nations, talks in Canada of promoting "Buy Canadian" retaliatory actions have been suspended.

Rather than just looking at what's good for each other, both Canada and the U.S. have agreed that maintaining the long-standing friendship will have a positive payout for both countries.

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Obama and Small Businesses

2010-02-09T13:11:00.004-05:00

In his recent State of the Union address, U.S. President Obama presented a bold, economic initiative to help bolster his nation's struggling economy. Obama proposed making $30 billion available to small community banks so that they, in turn, can make these funds available in the form of credit to small businesses.

From a patriotic standpoint, Obama is worthy of praise in his concern for small businesses, part of the backbone of America. From an economic standpoint, many feel he has missed the boat.

Many bankers and economists agree that the problem in the U.S. economy is not the lack of credit but the lack of demand by small business and consumers. Simply put, Americans are not interested in borrowing money at this point in time. Unsure of their country's economic future, Americans prefer to save rather than spend. Herein lays the problem for small businesses. Their market has shrunk, due to fewer customers. As a result, they cut costs by hiring less and purchasing less from suppliers. At the end of the chain are the businesses that face closure. In order to keep afloat, these businesses attempt to obtain credit to pay their bills. But, these are the high risk customers that the banks don't want. The banks want the solid customers who can repay their loans. After all, banks make money from repaid credit, not defaulted loans.

At this point, the only banks that would require funds from Obama's $30 billion are those holding problematic loans, and they probably won't qualify. Bank regulators are examining records with magnifying glasses. High risk banks will most probably fail, rather than receive federal relief.

Maybe Obama should re-direct his funds. Stimulus funds need to get into the economy right away. Rather than strengthen the banks that are in trouble, strengthen the small business sector. When consumer spending is stimulated, the wheels of the economy will be oiled and the system will move forward.

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Tips for MBA's Seeking Work in Canada

2010-02-07T17:37:00.003-05:00

It's not easy. There's a lot of competition out there, and every unemployed MBA, whether recent or not, is looking for a job. What's the best job search strategy?

Recruiters and career experts offer the same advice to job seekers. Analyze your strengths and focus on your interests. Being an all-around expert in everything will work against you. Have a clear-cut idea of how to best sell yourself. Also, while you're still in school, start making connections. Long before graduation is the time to start developing your network of contacts. Let the business world know who you are and what it can expect down the pipeline. You want business to be waiting for you.

Don't be overly picky. As small, temporary jobs and internships come your way, take them. Each job affords you additional experience and contacts, both of which are vital down the road.

Another avenue to follow is temporary contracts. With a growing number of entrepreneurs starting businesses in Canada, many are seeking business consultants to help them in their start-up ventures. However, while ideas abound, money doesn't. Many cannot afford to hire "top" consulting firms and would rather pay less for younger talent. While these contracts will rarely offer job security to a young MBA graduate, it will help establish credentials and afford opportunities to gain vital hands-on experience.

Current MBA graduates should be aware that patience would have its rewards. A large segment of today's senior management is at the front end of the baby boom generation. Many will be retiring over the next decade, making way for the next generation to make its mark on the business world. Therefore, the time is right for "the next generation" to gather experience and be ready and waiting for the opportunities that are just around the corner.

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Emerging Fields for New MBAs in Canada

2010-02-03T15:21:00.006-05:00

There used to be a saying in financial markets, "MBA – leads the way." The question today is where that MBA is leading to. The times are changing and traditions are changing with the times. A student who put in long, hard years of study to earn a respectable MBA degree can still look forward to a rewarding career. But where will that career be?

Banking, long a natural employer of skilled, financial and business minds, has begun to offer new opportunities. The relative strength of Canada's banks has allowed them to expand internationally. This translates into ripe opportunities for MBA's with international experience, or those seeking to gain experience.

With more and more Canadian companies seeking outside, professional advice to help examine and assess their operations, in light of the effects of the recession, consulting jobs are providing prime employment for bright MBA students, especially those with knowledge of those industries that are going through tremendous change, like media, wireless broadband, and health-care.

For many other graduates, the time has come to think outside the box and forge ahead into uncharted territory. Public service is now seeking more MBA students that ever before. For example, the government's stimulus funding for infrastructure projects has created many jobs and projects. These need the right people to administer and oversee these massive projects.

Growth in the non-profit sector has outpaced the economy. As the need for professionals has grown greatly in the "third sector" of non-profits and NGO's, job opportunities for appropriately trained MBA students are continually available.

MBA students, with their fingers on the pulse, are also preparing themselves for careers in other budding sectors, such as sustainability and technology. A good deal of investment dollars is heading to these fields and many companies are seeking top, business minds to help them emerge on top not only financially, but ecologically and socially as well – the top business priorities of the 21st century.

There is one thing that an MBA student will not learn in school. When opportunity knocks – open the door. However, sometimes you have to search for the handle.

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Canadian Auto Industry Driving Growth

2010-02-02T15:07:00.003-05:00

Cars are a vital part of the Canadian culture, not to mention the economy. The recent recession had a devastating impact on automobile manufacturers and sales in North America. However, with the economy on the rebound, sunnier days are in sight for the Canadian auto industry.

British Columbia and Alberta, the country's westernmost provinces and both with resource – dependent economies, were hit extremely hard when commodity prices took a nosedive during the recession. However, with the demand for natural resources rapidly returning, the economy in the west is improving and car sales will follow suit. Industry experts predict that new car sales in British Columbia will rise by 5% in 2010 and by 10% in Alberta. This is a major recovery following a dismal 2009 ending in sales declines of 15% in B.C. and 21% in Alberta.

Growing consumer confidence in the nation's economy, coupled with global recovery, is expected to fuel positive sales figures across the nation. Projections for the current year anticipate auto sales to climb to 1.53 million units, 10% higher than sales figures for 2009.

Another province expected to contribute to the rise in sales figures is Saskatchewan. Although the province holds the record for the oldest vehicle fleet in the country – average age exceeding 11 years – auto sales are still 12% above the average. In general, growth in the province has exceeded the national average for the last three years.

On the other end of the scale, Quebec is expected to show only a moderate increase in auto sales of no more than 3%. The province currently has more new vehicles per capita than any other province.

Whether the contributing factor is a recovering economy, a relaxation of credit restrictions, or even purchases for the upcoming Winter Olympics, the fact is that Canadians love their new cars and, having weathered the global storm, it's time to go shopping.

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Career Path for an MBA in Canada

2010-02-01T13:33:00.003-05:00

It's best to begin with the good news. Overall, on the global level, the Canadian economy is in much stronger shape than the American economy. That having been stated, life is still rather difficult at a grass roots' level, especially if you are a recent graduate of a fine university, clutching the license to a successful career – your MBA.

This is not to say that an MBA degree is unimportant. Just the contrary! It is a degree well worth pursuing, especially if your career vision is targeted in the business or financial sectors. Unfortunately, though, the current employment market is not the most promising for new MBA's. In the finance sector, traditionally the major MBA employment sector, career centres for MBA graduates report a decline in finance jobs ranging from 6% - 16%. In addition, graduate schools have reported a drop of on-campus recruitment of at least 10%. Furthermore, graduates seeking internships have encountered a serious reduction in available placements. Back to the good news, the dip in salaries in Canada was slight, compared to the major drop in 2002. Estimates are that salaries will return to the pre-recession level by late 2010 or 2011. However, if you can't secure a position, the salary is irrelevant.

Recruitment has been on the rise in some sectors, though. More positions requiring MBA's have become available in government, health care, non-profit, and energy. While these sectors comprise a relatively small percentage of all available jobs, it may cause new graduates to begin thinking in different career directions, away from the traditional employment sectors. Also, a growing number of recent grads have turned to entrepreneurial endeavours, as have many Canadians who have been unable to find employment.

Some graduates have begun looking for foreign employment, although the prospects abroad are also not very encouraging. For most, though, they will weather the storm in Canada, hoping for better times down the road because, when all is said and done, there's no place like home.

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Be Prepared for Slower Growth

2010-01-28T16:10:00.002-05:00

It sounds strange but positive thinking may not always be the best course of action. This is true most recently when many businesses have had to weather the storms of the current economic recession.

A recent survey by a major American consulting firm concluded that many businesses have failed to adequately prepare for further slow growth on the economy. While they may have taken measures to keep afloat in the current economic climate, they have assumed that better times are down the road. However, as many current indicators project that the "better times" are still at least two years away, if not more, the fear is that companies may not be prepared.

One of the problems is that preparation for long range financial problems differs from the short term. In order to balance the books presently, some businesses have trimmed administrative overhead and tried to curb spending. But, long term would mean trimming the payroll and restructuring debts. In an era when executives are trying to be optimistic about the future, these "hard-line" steps are far more difficult to make. Business executives realize that profits will be down for awhile but they truly do not expect the downturn to last that much longer. They would rather gamble on a few positive signs as indicators of sunshine rather than admit that the storm may not be over. For many companies, that outlook may be perilous.

Economists feel that we are not yet out of hot water. Cautious optimism may be the best idea but the emphasis is on caution, not optimism. It would be wise for the business community to take precautions in advance of any further problems. Be prepared to handle the economy based on reality, not predictions.

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How to Talk to Your Board

2010-01-27T13:14:00.002-05:00

Knowing how to manage a large corporation is not enough for a top executive. It is also crucial to know how to work with your board.

Before entering the boardroom, know who is sitting there and what their expectations are. The way board members think or grasp a particular situation may differ from yours. When you live a company daily, your appreciation of its subtleties, or your comprehension of its needs, will differ from those of someone who knows the company from afar. Therefore, learn who your board members are and present reports to them in the way that they want to hear them. Meet them on their terms.

Don't try to impress the board with fancy numbers, terms, and analyses. They know that you know all this. They want to know the bottom line without a lot of hype. However, don't underestimate their expectations. Present the risks and challenges that the company faces. Your job, after all, is to guide the company through these. They want to know how and how much.

Presenting confidence is vital. You are their person at the helm. When you exude confidence, the board feels comfortable that the company is in strong hands. When possible, don't go into the boardroom "cold turkey." Plan your presentation in advance. Know what you want to say and how to say it best. Also, prepare yourself for tough questions. The board expects you to have all the answers at your fingertips. Therefore, the more you prepare, the better you will appear.

As you make your presentation, keep an eye on your audience. Learn to read body language. Whatever it takes, avoid a bored board. If attention starts waning, it is time to switch gears and get their attention back. Work with them and they will work with you.

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When Your Employee is Too Ambitious

2010-01-26T14:20:00.005-05:00

It's a classic business tale that happens all too often. The CEO trains an underling to become a loyal second-in-command and then, one day, the underling attempts to unseat the CEO in order to gain the number one position. The automatic response of the boss is to show number two the door. Should that be the appropriate response?

Truth be told, every situation has to be judged by itself. Certainly, a person who feels threatened will respond in a defensive manner. But let's examine the situation a little more closely.

There are several reasons for training the underling. First of all, one role of a manager is to train employees. Secondly, ambition in senior employees is healthy for the organization. You want the people with drive to be in leadership roles. They help inspire others. A central question is whether that ambition is good for the organization or just for the individual.

Healthy ambition should be channeled appropriately. In fact, helping an employee – even a top level one – chart their career is important. Working toward a career goal can add to the person's drive. However, open communication is all part of the process. Just as a CEO should share visions with the staff, so the staff should be encouraged to reciprocate.

On the other hand, one does not want to be naïve. True that none of us remains at the job forever. An eventual successor will be necessary at some point. However, you should choose that point in time, not the successor. Therefore, it makes good sense to keep your eyes open. A common tactic to usurp power is to "make the boss look bad." Therefore, keep detailed records of meetings and conversations. Don't reveal all the secrets to your trusted aides. A few trump cards in your pocket may be necessary to help maintain order and stability. Remember that trust is mutual. If one side destroys that trust, the rules of the game change and you're the one in charge.

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The Right Staff

2010-01-25T13:37:00.004-05:00

Remember the movie, "The Right Stuff?" It depicted the U.S. efforts to find the perfect people for its manned space program. Well, staffing your business requires the same diligence and detail. In order for your business to succeed and grow, your staff should match your needs perfectly.

If you're operating a business, chances are your business will reflect your own personality to a certain degree. After all, you work hard to build an entity and a part of you is in that business. You believe in it! You have the drive and vision to see where this venture should go. Doesn't it make perfect sense that your staff should share the same values as you?

It is important to remember that most people spend the better part of their waking hours at work. Therefore, they expect that their place of employment will be more than merely a source of income. In fact, surveys have been conducted showing that salary levels are only part of most employees' expectations.

Do you share your goals and dreams with your employees? Try letting them see the business as you do. Encourage them to be a part of the essence of the business. The more they believe, the better they will perform.

Also, how do you face your "team?" Do you have a sunny disposition? It's not always easy, especially when problems are on the horizon. But, encouraging a positive attitude goes a long way. Smiles are contagious! In the workplace, a smile makes a person feel good. Feeling good translates into a positive attitude. Positive attitude means productivity.

The bottom line is when employees want to come to work because they enjoy being there, and realize that they truly are important to the success of the business, the result is a business that really has the right stuff.

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Positive Cashflow Critical to Small Business

2010-01-19T13:22:00.014-05:00

If you're in business for yourself, you know that maintaining the status quo is not nearly enough. You must continually think of ways to spur growth in your business. While there is no specific recipe for success, there are several helpful tips that can be considered.

Positive cash flow is critical to any business. As such, it is vital to know your financial standing at any given point in time. Looking at the books at the end of month is simply inadequate. Keep your records as current as possible, updating them daily if you can. After all, shouldn't you be in constant control?

Often, business owners ponder how to improve sales. One suggestion is to truly focus on your clients. Research their needs and problems and provide the solutions. A proven path to success is to give the client exactly what they need, rather than convince them to settle for less. Build a bond based on mutual need.

As important as sales may be, they are worthless if the customers don't pay. Collections are often a major stumbling block for businesses. Some experts suggest that working with the clients is better than dictating terms. Try to mutually agree on terms of payment. Sometimes, it may advantageous for the top executive to personally collect serious debts. After all, the same money pays all salaries.

Stability in business is also vital. Retaining good employees is often no less important than holding on to key customers. Of course, what's to stop the competition from luring your top employees? Building a strong bond with your staff can help with retention. Employees keenly involved with the company, who appreciate how they contribute to the company's success, are far less likely to be recruited elsewhere.

Finally, look for the best people to work for you. Don't just rely on resumes. Almost anybody can write a creative one. Use interviews to seek out true potential and look for potential personal chemistry.
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$170 Billion Charged to Visa and MasterCard

2010-01-17T13:18:00.001-05:00

Once upon a time, there was the Chargex card. Some received it from their bank but most Canadians lived without it. Today, more than 40 years after Canada's first charge card, there are more than 74 million credit cards in circulation, roughly 3.1 cards for every Canadian over age 18. The last available statistics indicate that Canadians charge more than $170 billion to Visa and MasterCard.

Studies show that the average person spends 112 percent more on a credit card as opposed to cash payments. In real terms, this means that Canadians are living well beyond their means. Many are juggling several credit cards and paying minimum monthly payments as low as 2 per cent of the balance, rather than paying the entire balance. In fact, more than 50 per cent of credit card holders opt for not paying the balance. Putting this into perspective, if your balance was $5,000 at 18 per cent interest, and you opt to pay only the minimum monthly, it would take almost 30 years to pay the balance, assuming you did not add to it.

Part of the problem is that credit cards are a basic necessity of today's society. Some cards also provide benefits that can be quite worthwhile. The trick is to be in control.

There is no reason to carry a different credit card for each store and each bank. One all-purpose card should suffice for virtually every need. (It is wise, though, to have separate cards for personal and business expenses). Check the interest rates as they vary greatly from card to card. Avoid temptation! Use the card for what you need, not what you want! Using a credit card as opposed to not carrying cash makes sense. Using it instead of cash that you don't have can lead to problems.

If credit card debt starts taking over your existence, don't be afraid to seek help from a credit counselor before it's too late.

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The End of Low Interest Rates

2010-01-14T13:13:00.001-05:00

The period of low interest rates is coming to an end. According to current forecasts, the rates will start rising midway through 2010. For many Canadians who went on holiday shopping sprees, stretching their credit limits to the max, the rise could spell sudden difficulty or disaster.

The Bank of Canada has warned that the biggest risk to the country's financial system is record household debt. Canadian households spent an average $71,360 last year, two per cent more than 2007. Approximately 20 per cent represented housing expenses.

As many Canadians wish to unload their mortgages as soon as possible, they are struggling to meet payments due to accelerated pay-downs on principal. Combining these high payments with other debts has put a stranglehold on many consumers.

It is crucial to take control of your debts before they control you. Experts suggest developing a plan of action to tackle your debts before problems arise.

It may be wise to suspend accelerated pay-downs on your mortgage. Use the extra cash from the lower mortgage payments to tackle the credit cards and other debts. Refrain from adding debts to your cards while you reduce the balances. Remember that higher unpaid balances carry higher rates of interest. It may also be advisable to take a consolidation loan at a lower rate of interest and pay off the cards. Also, try not to use more than one or two credit cards.

Sometimes, debts can get the best of us. Don't be afraid to seek help from credit counselors, if you feel that you are beginning to drown in debt. These professionals can help you before you panic and assist you in gaining control of your financial situation.

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Good Debt Versus Bad Debt

2010-01-13T13:00:00.019-05:00

How many of us have been to our physician and received an explanation about good cholesterol and bad cholesterol? Much has been written about it, as well. But, how many have heard explanations about good debt versus bad debt? Probably very few, as financial education is sorely lacking in society.

Personal debt is on the rise, partly because obtaining credit today is relatively easy. If you breathe, you can probably obtain a credit card from your bank or a retail store. And, more often than not, the only one who benefits is the one who issues the card and charges interest rates that can exceed 20 percent.

Far too many consumers confuse credit cards and cash. If you are prepared to pay off your monthly balance and merely use the card for convenience, you're in the responsible minority. However, far too many people freely use their credit cards and neglect the fact that the bill eventually has to be paid. Paying only a minimum at the end of the month only digs a deeper hole. And, truthfully, most people don't keep track of how much they spend on their cards.

On the other hand, not all debt is bad. Taking a mortgage to purchase a home is a wise investment. As the house appreciates, the value will exceed what you paid on the loan. Another example of good debt is securing a loan to purchase high return stocks or bonds. When the return exceeds the interest paid, your debt has accrued value.

Experts suggest that your debt-to-income ratio should not exceed 20 per cent. Higher than that looks bad on credit reports and can lead to difficulties. Better to keep debt to a manageable level and avoid the temptations of living on credit. Even when times are good, don't forget to prepare for the eventual rainy day as well.

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