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Fast facts about business start-ups in Canada

2009-08-25T15:47:00.000-07:00

• One hundred and thirty nine thousand new businesses start up every year.
• Failure rates for small businesses in Canada are high for the first three years and decline over time.
• Seventy per cent of small businesses that enter the marketplace survive for one full year; half survive for three years.
• Twenty five per cent of small businesses are still operating after nine years.
• The top three reasons people start a business are – to leave the corporate rat race, to make a living after graduating or immigrating to Canada, to make a living between jobs or to start a business over 55.
• Entrepreneurs get their ideas by copying or modifying an existing idea, building a business from their hobby, experiencing an "a-ha" moment, being inspired by someone else's experience or market research.
• Ideas for new businesses are borne out of an untapped market, an invention, the desire to improve on an existing idea, changes in technology and changes in social trends (i.e. environmentalism).

Source: Staples Business Depot.
www.newscanada.com

Changing the world, one click at a time

2009-08-11T17:17:00.000-07:00

For non-profit organizations working to create awareness for their cause, social media tools like Facebook and Twitter have become invaluable. Forward-thinking charities have embraced these tools as a means of engaging with their supporters and of winning over new ones.

As a firm believer in the value of social media, the Multiple Sclerosis Society of Canada has taken this philosophy to heart. “This is a new approach to communication for non-profit organizations,” says Ken Mayhew, chief development officer at the MS Society of Canada. “Interactivity and participation is what makes this unique. It truly is a new frontier of communications.”

The power of social media is far-reaching, and the gains for non-profits go beyond monetary. While the tools can be effective ways to raise funds, they also contribute to a cause in their ability to educate the public, raise awareness, create excitement, and incite participation. To this end, the Multiple Sclerosis Society of Canada has successfully launched blogs to promote its fundraising campaigns and special events like the RONA MS Bike Tours, maintaining pages on Facebook, Twitter, and YouTube. Supporters can easily share links with friends and family, gather pledges, and report on their training progress.

Many view social media's non-intrusive approach as one of its best features. “Social networking sites deliver a message without requiring a donation or anything in return,” says Mayhew. “Supporters are able to inform others about a cause that is meaningful to them. If even a small percentage of the people who receive this message donate, join a fan page, or get involved in some other way, they have made a valuable contribution to the cause.”

Looking to the future, the potential of social media appears to be infinite. Perhaps the most exciting aspect of the technology is that it equalizes the communications playing field. “We no longer have to wait for mass media like newspapers and radio stations to publish news,” says Mayhew. “Now we can participate in the process and have our opinions heard in reaction to that news.” For people who choose to give back to a cause that just might mean playing a part in changing the world, one click at a time.

More information about the RONA MS Bike Tours can be found online at www.msbiketours.com. You can follow the RONA MS Bike Tours online at www.gearingup.ca, www.twitter.com/msbiketours, or join the RONA MS Bike Tour Facebook Fan page at www.facebook.com.

Source: www.newscanada.com

Survey shows employees' stress dependent on region

2009-08-04T12:41:00.000-07:00

(NC)—According to the 2009 Desjardins Financial Security National Health Survey, Canadian employees are showing signs of mental distress related to the current difficult economic times.

An average of 30 per cent of Canadian employees are experiencing anxiety, losing sleep, and/or suffering from headaches, muscle aches and other physical tension—symptoms which often precede more serious problems. However, higher-than-average results from different parts of the country are more alarming.

For example, results from Ontario and British Columbia were higher than the national average in all three symptoms. But, results from the Maritimes, Quebec and the Prairies registered less than the average. When respondents were asked if they were paying more attention to their personal finances since the start of the recession, 83 per cent of Canadians said yes. However, the average was much higher in Ontario, the Prairies and British Columbia.

Employees' relationship to work

Respondents were also asked several questions about their work situations since the start of the recession. About 43 per cent of Canadian employees said they are worried about losing their jobs. These results were significantly higher in Ontario, where 55 per cent are concerned about job losses.

When asked about reduced work productivity and increased time off work, the national average was 29 and 20 per cent respectively. Ontario and British Columbia both showed significantly higher results in reduced productivity (34 and 31 per cent), and the Prairies registered the highest percentage of time off work (23 per cent). More than a quarter of Canadian employees said that they were less engaged at work. All the regions except for British Columbia (34 per cent) were on par with the Canadian average.

How employers can help their staff

While employees have certain responsibilities in managing their mental health at work, there are steps that an employer can take to help their staff during the current economic storm:

• Communicate with your staff regularly. As a manager, stay visible and approachable. This visibility can quash the rumour mill and alleviate fear.
• Urge employees to look at what they can control by having group meetings to cultivate creativity new ideas and find solutions.
• Create a positive picture. Replace fear with hope. Reward innovation and brainstorm new ideas.
• Identify employees who are not coping well. Meet with them privately and ask if there is a way you can help them cope.
• Be supportive. Showing empathy and providing a listening ear can help staff feel less anxious and isolated.
• Boost morale by heading off unacceptable behaviour and remind employees that their individual behaviour will collectively help the company to thrive.
• Provide employee assistance programs. This is not the time to eliminate EAP services. Support offered by EAP is a long term investment for the mental health of employees.

More information on the Desjardins Financial Security Health is Cool survey is available online at www.healthiscool.ca.

Source: www.newscanada.com

Surviving the recession: timely tips for employees

2009-07-13T13:04:00.000-07:00

(NC)—They're stressed, anxious, worried about their jobs. Many Canadian employees are showing these and other signs of mental distress. According to the first results of the Desjardins Financial Security National Health Survey, a significant number of workers in Canada feel they have lost control of their lives as the economic recession grinds on, as unemployment numbers rise and as financial security appears to be evaporating.

The study found that one-third of those surveyed say they are more stressed now than a year ago. About 30 per cent of employees across Canada are experiencing anxiety, losing sleep, and/or suffering from headaches, muscle aches and other physical tension—symptoms which often precede more serious problems. Among their worries, three of the most stressful aspects of their lives are associated with their employment—money, workload and job security. Employees appear to be working longer hours, and 54 per cent feel the current recession is having an impact on their work/life balance. As well, 43 per cent are now concerned about losing their jobs. According to Michele Nowski, director of disability claims and disability management with Desjardins Financial Security, this uncertainty is creating an increasingly stressed-out workplace.

"When employees experience increased stress in their lives and work, this tends to result in increased presenteeism and absenteeism." said Nowski. “Employees and employers can work together to create a mentally healthy workplace that will typically have fewer disability claims, less absenteeism and better productivity."

Here are some useful tips to help employees weather the current economic times:

• Prepare yourself for a job search when job security is a worry. Take responsibility and focus on the things you can control.
• Conduct your own skills inventory by asking friends and family to identify your strengths. Make your own list of skills and attributes you have accrued at your present job and previous ones.
• Potential job loss can get you thinking about career opportunities you have always wished to explore. Research career paths of interest and determine their required skill sets.
• Stay connected to your world outside work.
• Don't buy into the low morale at your office. Avoid the rumour mill. Stay detached from gossip and negative thinking, and focus on your own accomplishments and goals.
• Cultivate your hobbies and interests. Now is the time to lift your mood by exploring the passions and interests that make you happy.
• Seek out your friends. Share each other's insights. Friends can offer support, comfort and humour.
• Don't avoid the company supports. Take advantage of your company's Employee Assistance Program.
• Take care of yourself. Don't drop your exercise program because you are too stressed.
• Exercise, sleep and good eating habits still comprise some of our best measures at combating mental health issues such as anger, depression, stress and anxiety.

More information on the Desjardins Financial Security Health is Cool survey is available online at www.healthiscool.ca.

Source: www.newscanada.com

Tips to straighten out your finances in a tight economy

2009-06-29T08:12:00.000-07:00

(NC)— An unfortunate event, such as a sudden job loss or a work related disability, can happen to anybody. Here are a few tips that may help you improve your financial picture.

• Review your spending habits
- Monitor and reduce unnecessary expenses. Simple changes like bringing your own lunch to work or school and making coffee at home can add up to thousands of dollars saved per year.

• Be ready for unexpected events by insuring loans, mortgages and credit cards
- Insurance products on personal loans, credit cards and mortgages, such as LoanProtector®, BalanceProtector®, or HomeProtector® from RBC Royal Bank, can help protect you in case you're unable to make the monthly payments.

• Look at combining financial products for additional savings
- Consider bundling products for additional savings. For example, if you purchase your home and auto insurance policies through one provider - you may qualify for additional savings.

• Pay off your credit cards with the highest interest rate first
- This can save you hundreds of dollars per year. Also look to transfer high interest credit card balances to a card with a lower rate. Speak to your credit card company about getting a lower interest rate card.

More information on this topic is available online at www.rbcinsurance.com/insuranceneeds or visit your nearest RBC Insurance branch.

Source: www.newscanada.com

Credit card rewards bolster small business

2009-06-08T09:03:00.000-07:00

Business Quick Tip:

(NC)—On every purchase, make credit work for you and your company by the quickest accumulation of redeemable points for future merchandise and services. One of the most lucrative credit cards to come along to date is issued by Staples and Citi Cards Canada called Citi Staples easyRewards Business MasterCard. Reward points are redeemable on all Staples merchandise and services, on Sobeys supermarket purchases, Petro-Canada gift cards, and on WestJet air tickets. When using the card you get: 1% easyRewards on every dollar you spend on your business; double points on key business expenses including gas, car washes and convenience purchases from Petro-Canada; and triple rewards on all Staples purchases anywhere in Canada. In addition to these and other benefits—including payment flexibility for large ticket items—there is no maximum on rewards earned; no minimum 'spend' requirements; and rewards can be redeemed at anytime.

Source: www.newscanada.com

My home, your home or our home

2009-06-01T09:16:00.000-07:00

(NC)—When considering your living accommodation after you're married, there's nothing quite like owning your own home together. It's not yours or mine; it's ours, and maybe a place to start a family.

If you are lucky enough to have received money for a down payment as a wedding gift, or one or both of you owns a house or condo you're considering selling to trade-up to a family home, it's really worthwhile talking to a mortgage expert before you talk to the real estate agent. Gathering relevant financial information is your first step to home ownership. Before you fall in love with a home, you'll want to know that your financing has already been arranged, and the following questions have been answered:

• How much can we afford?

• What's a comfortable mortgage payment for us?

• What are the additional costs?

• How fast do we want to pay down our mortgage?

In fact, many real estate agents may encourage you to get a pre-approval before they begin working with you; and, when you have your mortgage financing arrangements in place it indicates to prospective vendors that you are a serious buyer. It also gives you the security of negotiating a house price that falls comfortably within your budget.

Consider applying for a CIBC Pre-Approved Mortgage Certificate and shop for your first home together with confidence. You get a guaranteed interest rate for 90 days from the date of the pre-approval certificate, which provides flexibility and reassurance during the guaranteed period – whether the mortgage rate go up or down.

A CIBC advisor can discuss your specific situation and give you all the information you need, or visit www.cibc.com/mortgages for useful mortgage calculators and articles to help you with your research.

Source: www.newscanada.com

Small Business Tips: This credit card supports your business

2009-05-25T08:33:00.000-07:00

(NC)—Lenders compete to give you credit, so do step back and be selective.

A small business in particular, should aim for the maximum advantages in its choice of credit card—and examining the rewards of a loyalty program is a very good place to start.

On every purchase for example, make credit work for you and your company by the quickest accumulation of redeemable points for future merchandise and services. One of these is the newest credit card issued by Staples. This national retailer of office supplies is partnering with Citi Cards Canada to produce the much coveted, Citi Staples easyRewards Business MasterCard.

“There are nearly 1.3 million small businesses in Canada,” says Staples president, Steve Matyas, “and we are constantly looking at ways in which our store personnel can interact with local customers to understand varying needs.

“As a result, we're not offering a re-purposed consumer credit card,” he continued. “Instead, by making every purchase pay dividends, the benefit-structure of this card targets the needs of small business budgets with a unique set of focused rewards and features. A snapshot of the benefits is as follows:

• Reward points redeemable for: Staples merchandise or services; Sobeys supermarket purchases, Petro-Canada gift cards, or for WestJet air tickets;
•1% easyRewards on every dollar spent on your business;
• Double points on key business expenses including gas, car washes and convenience purchases at Petro-Canada;
• Triple rewards on all Staples purchases anywhere in Canada:
• No maximum on rewards earned; no minimum 'spend' requirement; rewards can be redeemed anytime.
• An extra 60-days to pay large ticket items;
• On-line expense management;
• Optional health and dental insurance

Cardholders also have access to www.businessownersgetit.com. This is an online resource for entrepreneurs, which includes the Tell Us Your Story section, where small business owners share their successes. This site gives you a forum for your questions in Ask an Expert, plus money-handling tips in Use Credit Wisely, and it offers exclusive access to merchandise sales.

Source: www.newscanada.com

Buying your first home

2009-05-19T10:03:00.000-07:00

(NC)—There's nothing quite like owning your own home – getting to know your neighbours, decorating your home and creating a place that you can call your own. But owning a home is not quite as simple as finding the right home in the right neighbourhood; your financial situation can be an important factor in the type of home you can afford. For example, you will need to determine how much you have available for a down payment, and, based on your budget, what mortgage payment you can comfortably carry. By answering these questions, you will be able to make a smart and informed decision before you buy the home that is right for you.

Luckily, the home buying experience has become much easier with the introduction of mobile mortgage specialists – trained mortgage professionals who are able to meet with customers at a time and place that is most convenient for them. “This is incredibly important to those who work during the same hours as a standard bank and those who have questions about home affordability, especially first time home buyers who need answers to their complicated home buying questions,” says Mona Rafiq, a CIBC Mortgage Specialist.

One of the most common first-time home buyer questions is affordability. Mona suggests four ways to help make your home buying experience smooth and straightforward:

1. Understand Your Financial Situation: Your financial needs will change and evolve throughout your life. Working with a trained professional to understand your current financial situation and your future goals can help you assess what type of home you can afford.

2. Ask About Your Credit History: A credit rating is a measure of how dependable you are in repaying your debts. A good credit rating goes a long way in helping you obtain credit and determine the interest rate you will receive. For example, if you pay your bills on time, or if you repay a loan, you will be in good standing with the credit bureau. So, when it's time to borrow, a lending institution will know that you are credit worthy. For more information on your credit history, contact TransUnion or Equifax Canada and get your credit report free of charge by mail.

3. Get Pre-Approved: By getting pre-approved, you will know how much home you can afford which will allow you to shop with confidence within your price range and prove to sellers you are a serious buyer. Plus, obtaining a pre-approval is absolutely free.

4. Ask About Extended Amortization: The extended amortization feature is available on most mortgage products. The feature provides home buyers the flexibility of lowering their mortgage payments by spreading them over a longer period of time helping ease budget and cash flow issues. But keep in mind by extending your amortization you will increase the amount of interest that makes up your mortgage payment. Given this, it is important to choose a mortgage that allows you to increase your payments and make lump sum payments when you can. Currently, most financial institutions are offering up to 35 year amortization periods.

Keep these important points in mind to help you find the house you love at a price you can afford. For more information or assistance with your mortgage needs, visit your nearest CIBC branch, call 1 800 465-CIBC (2422) or visit www.cibc.com/mortgages.

Source: www.thenewsleader.ca

TFSA 101: How to make it work in your portfolio

2009-05-11T11:08:00.000-07:00

(NC)—Just when you think you've got all the financial jargon down – from RESPs to RSPs, another acronym comes along that leaves you scratching your head in confusion. But instead of burying your head in the sand, educate yourself because it could pay off in the end. Come January 2009, Canadians will now have another investment option to pick from with the introduction of the TFSA (Tax-Free Savings Account). But what exactly is it and does it make sense in your portfolio?

During the 2008 federal budget, the government announced the introduction of the TFSA.

“It's new and sounds technical, but TFSAs are actually very simple and powerful savings tools that should help Canadians break out of their anemic saving patterns, which currently stands at less than one per cent of household annual incomes,” said Linda Knight, President and Chief Operating Officer, BMO Mutual Funds. “Basically, a TFSA will act like a piggy bank where Canadians can save for a rainy day without being taxed on the investment growth.”

Despite being described by industry watchers as the single most important personal savings vehicle since the introduction of the RSP, a recent research report conducted by Harris/Decima found four in ten Canadians had “absolutely no awareness” of the TFSA.

The following is a primer on how the TFSA will be applied when launched in January 2009:

• Any Canadian 18 and older can contribute up to $5,000 a year in a TFSA

• Contributions into an TFSA are not tax deductible, but similar to an RRSP, investors do not have to pay tax on any investment growth

• Any unused contribution room can be moved forward to subsequent years

• Similar to RRSPs, TFSAs can include a variety of investment products such as mutual funds and GICs

To determine how to best incorporate a TFSA in your current investment portfolio, meet with a trusted financial planner at your local BMO Bank of Montreal branch – free of charge. For more information on TFSAs visit www.bmo.com.

Source: www.newscanada.com

Give your finances a booster shot

2009-05-04T10:05:00.000-07:00

(NC)—A brush with serious illness can mean time off work to rest and recuperate – as well as time off the company payroll, which may have serious financial consequences. To lessen this risk, many families opt for a financial booster shot of sorts: critical illness insurance.

“The burden of an unforeseen illness can be more than physical and emotional. It can shake a family's financial security,” says Dave Minor, Vice President, TD Insurance. “Critical illness insurance offers peace of mind and it allows people to keep their focus where it belongs – with their loved one.”

The fundamental advantage of critical illness insurance is the financial support it can provide to an individual or family if a primary income earner is unable to work due to a covered illness. But there are other notable advantages to consider.

Time
Rather than feeling pressured to return to work prematurely, cash flow provided by critical illness insurance can make it possible to recover completely, on your own time.

Treatments
The latest treatments may not be available locally or funded by public health plans. Extra funds can provide access to the most up-to-date care, and support lifestyle and recovery demands such as private nursing, physical therapy and medical equipment.

Training
A serious illness could force a career change, or require a modified job or schedule. Having the financial ability to access the latest job training could be invaluable.

More information on critical illness insurance is available online at www.tdinsurance.com or by calling 1-877-397-4187.

Source: www.newscanada.com

Include insurance on your travel checklist

2009-04-27T16:11:00.000-07:00

(NC)—Toothbrush? Check. Swimsuit? Check. Suntan lotion? Check. Travel insurance? Huh?

Getting sick or injured during a vacation is not only bad timing, it can also be expensive. The pain of a broken ankle from playing beach volleyball or the bad shellfish you ate can be nothing compared to the expense of medical attention away from home.

“When planning for a vacation, the last thing anyone wants to do is think about what could possibly go wrong,” said Dave Minor, vice president, TD Insurance. “The reality is, accidents happen – and travel medical insurance not only can provide assistance in times of need, but also the assurance that you are protected.”

Travel medical insurance can include more than medical care. It can also help with additional living arrangements, or cover the cost of cancelling a trip or coming home early. Policies can be designed to suit your needs giving you added peace of mind that assistance is a phone call away.

“The most important thing is for people to fully understand what is covered, and what is not,” adds Minor. “The key is finding a policy that suits your vacation. Canadians planning to spend the winter in Florida may need a different policy than the frequent traveller who pops over to Montreal or New York City every other weekend. A snowbird will need to answer a few health questions when they apply for their insurance while younger, short-term travelers will not.”

Potential travellers should look for policies that are easy to understand with clear limitations and exclusions. Round-the-clock emergency telephone service is also a must.

“Taking travel medical insurance with you just makes sense,” says Minor. “The one thing you don't want to leave behind is the quality medical care and coverage you have at home.”

More information is available online at www.protection.tdinsurance.com or 1-866-753-6953.

Source: www.newscanada.com

Financial strategies for a worry-free retirement

2009-04-20T08:35:00.000-07:00

(NC)—Most financial analysts agree that financial markets follow natural high and low cycles. However, this latest market downturn has left many Canadian investors reeling, particular those who are looking forward to retirement in the next few years. Although there is always an element of risk when investing in market traded instruments, there is a product that offers investors with excellent growth potential while protecting capital.
Guaranteed Investment Funds
A guaranteed investment fund (GIF) works like a mutual fund. Deposits are divided across a number of funds to provide low-risk, well-balanced growth potential.

"One of the attractive features of this type of investment instrument is that your deposits are protected against market downturns," said Michael Aziz, regional vice president of investment product sales at Desjardins Financial Security. "Another excellent feature is that your beneficiaries are guaranteed to receive the full value of your investment in case of your premature death."

Funding a predictable retirement
Guaranteed investments funds can also include an option called the guaranteed minimum withdrawal benefit (GMWB). Investors who add the GMWB feature receive guaranteed and predictable retirement income over a set period of time. For example, an investor may choose to receive predetermined payments over 15 years. So, for the first 14 years, the investor will receive seven per cent of their deposit then two per cent in year 15. The payment amount remains constant regardless of market downturns. If the market experiences an upturn, investors will benefit by receiving extra payments.

"The GMWB feature is attractive because it provides predictable retirement income," said Aziz. "And, it adapts well to an investor's changing needs. Having peace of mind is truly a precious commodity these days."

More information is available online at www.dfs.ca/helios.

Source: www.newscanada.com

Is your business protected from credit risks?

2009-04-12T12:20:00.000-07:00

(NC)—For a business owner, some of the most stressful times in running a business happen when customers are slow to pay their bills -- or fail to pay them at all. Payments may be withheld by a client due to their insolvency or slow payment by their own customers.

Whatever the reason, unpaid receivables can put your business cash flow at risk and may even threaten the future of your business.

“Even when dealing with good clients, there are many unforeseen circumstances that make it impossible to collect on overdue accounts, says Simon Gilmartin, vice president of Insurance Business Markets at RBC Insurance. “These types of situations could prove extremely devastating to the future viability of the business, especially in high-risk and low-margin industries.”

One step business owners can take to protect their business from the impact of unpaid receivables is to purchase trade credit insurance, designed to protect a company's accounts receivables from losses due to credit risks.

Trade credit insurance can even help companies expanding into unfamiliar or new international markets that may be prone to political uncertainty or economic instability. Imagine how much more complicated it can be trying to collect from a bankrupt or slow paying customer located in a foreign country.

For more information on trade credit insurance, visit your local RBC Insurance branch, call 1-877-91-ROYAL (1-877-917-6925) or visit www.rbcinsurance.com/business.

Source: www.newscanada.com

Business Insurance 101

2009-04-06T09:26:00.000-07:00

(NC)—Business owners invest considerable time, energy, money and personal commitment into building a successful operation. Imagine, then, the devastating consequences of a fire, lawsuit, property damage, criminal activity and other crises that could happen to almost any business owner.

“Insurance exists to protect the things we work hard to build,” says Simon Gilmartin, vice president of Insurance Business Markets at RBC Insurance. “When a business suffers a setback such as a business interruption, burglary or the loss of a key decision maker, the owner needs to be ready for the associated costs.”

Here are some key insurance products business owners should be familiar with:

• Liability insurance provides protection from the threat of being sued for injuries caused to another person, damage to their property or liability associated with having your product injure someone.

• Business overhead insurance covers a business's fixed monthly expenses in the event the owner becomes ill or disabled.

• Trade credit insurance protects a business from the consequences of unpaid accounts receivables.

• Business interruption insurance provides protection by replacing lost earnings, should a business close for an extended period of time.

• Creditor insurance, such as the Business Loan Insurance Plan from RBC Royal Bank, can pay off the insured portion of a business loan if a key member of the management team or owner passes away.

• Commercial property and auto insurance protects property and automobiles owned by a business, against a wide range of risks.

For more information on business insurance, visit your local RBC Insurance branch, call 1-877-91-ROYAL (1-877-917-6925) or visit www.rbcinsurance.com/business.

Source: www.newscanada.com

How protected is your business?

2009-03-30T08:34:00.000-07:00

(NC)—If a disaster struck your business tomorrow, would your commercial property insurance be enough to keep your doors open? A recent survey of Canadian business owners by RBC Insurance and Ipsos Reid suggests many business owners might not be too sure. In fact, the survey reveals that almost 30 per cent of Canadian business owners admit to having a poor understanding of the risks that affect their business and how insurance could help minimize these risks.

Commercial property insurance covers or replaces a loss of or damage to property in the event a business was to suffer a disaster such as a fire or flood. But even with commercial property insurance in place, the owner may face other issues, including an extended interruption in business.

When a business closes its doors for an extended period of time to repair or relocate its premises, it is likely to experience a dramatic drop in earnings. These losses could prove devastating, leaving the business without customers or staff when it re-opens. Such a situation could even force a business to permanently close its doors.

Business interruption insurance can provide protection by replacing lost earnings, should a business close for an extended period of time. Depending on the type of protection, the policy could also cover payroll expenses, helping the business continue to pay its key workers while closed.

For more information on business insurance, visit your local RBC Insurance branch, call 1-877-91-ROYAL (1-877-917-6925) or visit www.rbcinsurance.com/business.

Source: www.newscanada.com

Is business insurance a key component of your business plan?

2009-03-23T09:38:00.000-07:00

(NC)—Most business owners work diligently to execute their well developed financial business plans. But for many, their plans don't include a strategy to protect their business if an unexpected crisis or setback were to occur. In fact, a recent survey by RBC Insurance and Ipsos Reid reveals that almost 30 per cent of Canadian business owners admit to having a poor understanding of the risks that affect their business and how insurance could help minimize these risks.

An unexpected crisis can strike any business, whether it's a fire that causes extensive property damage resulting in the business closing for an extended period of time, an employee injured on the job, or unpaid receivables that are unattainable.

Business owners should consider the following factors when developing their business plan:

• Include insurance that is customized to your business needs, when developing your plan. Every business faces its own unique set of risks and there are many different types of business insurance.

• Consider a business owners package, which bundles various types of essential business insurance into a single policy, providing the business with cost-effective coverage in one step, such as packaging commercial property, general liability, business interruption, and crime insurance.

• As a business grows and evolves, its insurance needs will evolve as well, so it's crucial for business owners to regularly review their business insurance needs to ensure its coverage is up to date.

For more information, visit your local RBC Insurance branch, call 1-877-91-ROYAL (1-877-917-6925) or visit www.rbcinsurance.com/business.

Source: www.newscanada.com
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Economic crisis should not stall succession plans

2009-03-16T10:32:00.000-07:00

(NC)—As Canada's entrepreneurial baby boomers approach retirement age, many will be looking to sell their business in the near term as a primary means of financing their retirement years. In preparing for this significant economic and often emotionally charged transaction, business owners may be grappling with many questions.

• How will the global economic crisis impact the sale of my business?

• Should I postpone my succession planning activities until the market recovers?

• If I pursue a sale transaction now, will I sacrifice value?

Despite recent stock market declines and tightening of bank lending practices, well capitalized industry consolidators continue to create an active market for small and mid-sized transactions that do not rely on financing funded from debt and equity markets.

“Business owners can rest assured that options still exist, particularly for the small-to-medium sized market,” says Michael Walker, national director, Aon M&A Transaction Advisory Group.

Industry consolidators report that they see excellent opportunities for strategic acquisitions, even in current markets, as they perceive less competition from financial buy-out firms that have paid relatively high prices for businesses using easily accessible and inexpensive debt, in recent years.

The general consensus from the nation's top economists is that we may be in for a long wait for a general economic recovery let alone another over-heated merger and acquisition (M&A) market like 2006-2007. In the meantime, your ability to compete effectively as a small to mid-sized business in hard economic times may adversely impact the value and/or saleability of your business later on. “Depending on your personal situation, the implications of postponing your succession planning process can have more negative consequences than proceeding in the current market,” cautions Walker.

That said, the current economic uncertainty is temporary – cyclical really – and does not mean that fire sale prices are the only option for a well-run business. “Purchasers typically assess an acquisition opportunity on its own merits, based on the long term future prospects of the business, inherent business risk and the associated rate of return on investment it will provide, regardless of market conditions,” notes Walker. This disciplined approach from buyers implies a natural bias toward M&A transactions involving higher quality sellers; and recent statistics bear this out. A recent survey by Standard & Poor's reports that many transactions have been completed in North America since September 30th with healthy average valuation multiples.

Walker advises, “If it made sense six months ago for you to be initiating plans for the sale of your business, it probably still makes sense now.” Things are not as bad in the Canadian M&A market as you may believe from dire media reports. Different industry sectors will be impacted in different ways. “Speak to an M&A advisor who can give you specific advice on the market for your business before you make a decision and don't be scared off by doomsday rhetoric,” says Walker.

More information on preparing your business for sale or succession is available online at www.aon.com.

Source: www.newscanada.com
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Ask the tough questions first if selling a business

2009-03-09T16:20:00.000-07:00

(NC)—For most business owners, planning the sale or succession of their business often takes a backseat to the day-to-day grind leaving entrepreneurs ill prepared to even begin contemplating discussions of a merger or acquisition (M&A) involving their business. For many entrepreneurs, the belief that because they have managed the business, often for decades, means they have the necessary know-how to prepare the business for sale is a dangerous one.

“More often than not business owners are merely reactive, and begin to deal with sale or succession related issues only when approached by a potential purchaser,” says Michael Walker, national director, Aon M&A Transaction Advisory Group.

Walker suggests that business owners ask themselves the following questions, as they prepare for sale or succession of their business:

• Do you know how to prepare your business for sale and how to get the best price?

• What is the market value of your business right now? Do you have the time and resources it would take you to find the right buyer at the best price?

• Will you hand the business over to family, employees, an outside buyer, or will you take it public?

• Do you have the capability to keep financial information private/confidential when managing the sale?

• What is your exit timeline? Would you consider an on-going management role?

• Do you understand the tax implications of selling or transferring your business and what you need to do to hold on to as much financial value as possible?

• How much money will you need to live comfortably in retirement?

• If you suddenly became ill or unexpectedly die, does your business have a continuity plan and would your family be financially cared for?

Careful planning includes recognizing that you need expert help and support in what can be a very complicated business transaction. Further information on preparing your business for sale or succession is available online at www.aon.com.

Source: www.newscanada.com
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Five expert tips to prepare your business for sale

2009-03-02T12:47:00.000-08:00

(NC)—Calling all entrepreneurs: Dreaming about a restful retirement in sunnier parts? Better sell the business first and don't wait till the last minute. “Business owners often underestimate the time and effort required to prepare the business for sale or succession,” notes Michael Walker, national director, Aon M&A Transaction Advisory Group.

Walker offers the following five tips to help you prepare your business for sale:

1. Transfer power: Enabling the management team to carry on without you will be a big plus to a purchaser. Build up your management team, and shift sole responsibility away from you. Transfer key personal relationships with suppliers and customers and formalize contracts where possible.

2. Hang on to key employees: To ensure the loyalty of key employees, changes may be needed to incentives and employment terms. Signing employees to employment contracts with confidentiality and/or non-competition clauses may reduce a purchaser's risk, and increase the price they're willing to pay.

3. Clean house: Stay one step ahead of the purchaser and deal with outstanding filings and remittances. Even if it means spending a bit of money to clean the slate, you should settle any legal disputes against the company well ahead of selling.

4. Talk taxes early: Speak to a qualified tax advisor about tax strategies and implications that will affect you personally after a sale or succession to a family member. Some strategies need to be planned years in advance, so start asking questions sooner rather than later.

5. Keep it a secret: Maintaining confidentiality is critical as you prepare to sell. Assemble an external team of advisors to help manage the sale process and reduce the risk of word getting out.

Further information on preparing your business for sale or succession can be found online at www.aon.com.

Source: www.newscanada.com
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Tips to prevent debit card fraud

2009-02-23T09:46:00.000-08:00

(NC)—March is Fraud Prevention Month, a national awareness program that informs Canadians about the dangers of fraud and how to prevent it.

“The INTERAC network is among the safest payments systems in the world, however debit card fraud can occur and that's why we're involved in educating Canadians about steps they can take to protect themselves,” said Tina Romano, Interac Association.

Debit card skimming is the unauthorized copying of electronic data from a debit card. Hidden equipment, such as card reading devices and pin-hole cameras are installed on ABMs or at retail locations to collect the card data and PIN of unsuspecting cardholders. The stolen data is then copied onto counterfeit cards, and used to withdraw funds without the knowledge of the cardholders.

Over the next couple of years, Canadians will be receiving new debit cards from their financial institution that contain an embedded microchip. The microchip puts the power of a computer onto the debit card, enabling the card to carry out additional security checks and prevent the production of counterfeit cards. Migration to chip technology represents an evolution of the electronic payments system that will make an already safe system even more secure.

“The PIN will continue to play a key role in the security of your chip debit card, so keeping your PIN secure remains an important role in preventing debit card fraud today and in the future,” said Romano.

Following are some debit card safety tips to help prevent debit card fraud:

1. Use your hand or body to shield your PIN during every transaction conducted at an Automated Banking Machine (ABM) or at the checkout.

2. Keep your debit card in sight when conducting transactions at the checkout.

3. Check your banking statements regularly and contact your financial institution immediately if you detect any unusual activity, for example purchases you did not make or missing charges.

4. Notify your financial institution immediately, if your debit card is lost, stolen or retained by an ABM.

5. Memorize your PIN - only you should know it. If you suspect that someone knows your PIN, even a friend or family member, change it immediately.

6. Select a unique PIN. Never use obvious information, such as, your telephone number, date of birth, address or Social Insurance Number. These numbers are often stored in the same place as your debit card enabling criminals to easily guess your PIN.

Retailers can play a role in preventing debit card fraud and protecting their customers by being aware of their surroundings and regularly inspecting their devices. Following are some tips retailers should follow:

1. Treat your PIN pads like cash. Keep PIN pads out-of-sight when not in use.

2. Check your PIN pads regularly for anything unusual.

3. Remind your customers to protect their PIN when entering it.

4. Talk to your payment service provider about other steps you can take to prevent fraud from happening at your location.

In the instance of debit card fraud, cardholders are protected by the Canadian Code of Practice for Consumer Debit Card Services, under which victims of debit card fraud will not suffer any financial losses.

More information about debit card safety and chip card technology is available online at www.interac.ca.

Source: www.newscanada.com
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Greening your wheels can save you money

2009-02-16T09:20:00.000-08:00

(NC)—More Canadian drivers are choosing hybrid vehicles. Auto manufacturers realize different types of hybrids are in demand and are introducing many new models to satisfy a growing consumer appetite for hybrid vehicles that fit their lifestyle. And while all hybrid vehicles help save the environment, they can also help save money too.

To enhance the affordability of driving a hybrid, insurance companies are coming up with innovative solutions to reward environmentally-conscious drivers. For example, new insurance programs are rewarding drivers who own or lease hybrid vehicles by offering discounts on auto insurance premiums.

An example is the Green Wheels Program from TD Insurance which rewards those who own or lease hybrid vehicles by offering a five to ten per cent discount on auto insurance premiums.

“Our enrolment numbers for the TD Green Wheels Program tell us that we've tapped into a huge shift in consumer attitudes about cars, costs and carbon footprints,” says Jean-Francois Tougas, Vice President, TD Insurance Home and Auto. “We wanted to respond to this shift by rewarding customers for green behaviour.”

In the face of rising fuel prices and environmental concerns, auto manufacturers are struggling to keep up with the growing demand for hybrid vehicles. With new fuel economy standards set to take effect in the US in 2017, the popularity of hybrids will likely continue to surge.

“TD Insurance is constantly looking to give back to the environment in ways that make sense,” adds Tougas. “Rewarding consumers who purchase or lease vehicles based on their environmental impact was a simple decision based on three factors – good for the consumer, good for the environment and good for our business.”

More information on how to save the environment while saving money is available online at www.melochemonnex.com ,or call 1-877-777-7136.

Source: www.newscanada.com
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Top tips for new drivers

2009-02-09T13:11:00.000-08:00

(NC)—For many teens – and even their parents – a driver's license is a ticket to freedom. However, even while they explore their new freedom, new drivers must keep safety and responsibility top of mind. This includes investing in an affordable insurance policy that offers drivers full protection.

There are some immediate actions new drivers can take to help lower the cost of insurance. For example, drivers who have completed an approved drivers training course in the last three years may pay lower premiums.

“Choosing a hybrid as your first car not only helps green the environment, it also helps keep the green in your pocket,” says Henry Blumenthal, vice president, TD Insurance Home and Auto. “Drivers who own or lease hybrid vehicles can save up to ten per cent on auto insurance premiums through the TD Insurance Green Wheel Program.”

Some additional tips for new drivers setting out this season include:

• Think pink – Keep your pink insurance card with you in the car and know what your insurance policy covers. You will need to show it if requested by the police or when you renew your license.

• Go slow – Watch out for children and pedestrians as well as changing road conditions. Accidents and tickets will increase your insurance rates and stay on your record for at least six years.

• Be equipped – Store an emergency kit in your car stocked with jumper cables, a flashlight, first aid kit and a disposable camera to take photos of any accident that may occur. Ensure that the spare tire is fully inflated and your cell phone is fully charged.

• Know your limits – Before heading out for a long trip, become familiar with the route. Keep distractions like loud music to a minimum and stay alert and observant to your surroundings.

Practice makes perfect, so keep driving and gaining experience on the road. To see which insurance policy best equips new drivers for the road ahead, visit www.protection.tdinsurance.com or call 1-866-753-6953.

Source: www.newscanada.com
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Protect your credit for peace of mind

2009-01-26T15:15:00.001-08:00

(NC)—Having access to credit cards, loans, mortgages and lines of credit gives Canadians the financial flexibility to purchase big ticket items such as homes, cars and vacations.

Without a doubt, there are many things to consider before incurring debt. But when the standard due diligence is over and the financing is secured, there is one important question many credit seekers fail to ask: “What if I can't repay my loan?”

The answer may come in the form of credit protection insurance. Depending on the type of coverage in place, this will help manage a person's debt in the event of involuntary job loss, disability, critical illness or death.

“It's wise to consider the need for credit protection,” says Dave Minor, Vice President, TD Insurance. “Then you can rest assured your family will not have large financial obligations for your mortgages, loans, lines of credit or outstanding credit card balances in the event that something unexpected should happen.”

Credit seekers should consider the following when deciding if credit protection is right for them:

• Who will pay my credit or mortgage if I can't work?

• Are my co-borrowers and guarantors protected?

• Do I have insurance protection in place before the purchase of my new home closes?

• Is my line of credit fully extended? Will my family or I have difficulty making payments should an accident or illness happen?

• Do I have sufficient savings to manage emergencies?

For the best advice, be sure to speak with a financial advisor or insurance specialist about ways to protect your mortgage, line of credit or credit card balance. More information is available at www.tdinsurance.com or toll-free at 1-888-983-7070.

Source: www.newscanada.com
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The truth about rental insurance

2009-01-19T08:44:00.000-08:00

(NC)—Almost four million Canadians rent their primary dwelling, according to a 2006 census by Statistics Canada. Whether they know it or not, renters and homeowners have one major thing in common: they both have a lot to lose.

Fires, thefts or break-ins are never expected. Many renters would be surprised at how much they risk losing without proper insurance – both in their personal belongings and personal liability.

“Many tenants mistakenly believe that insurance for rental units is the landlord's responsibility,” says Henry Blumenthal, vice president, TD Insurance Home and Auto. “It's not. For renters, having insurance just makes sense. Not only does it provide peace of mind, but it will also help them find their financial footing in times of crisis. Rental insurance is also very affordable with policies costing as little as $20 per month and even cheaper when combining this product with your automobile policy.”

Choosing the right policy for a given lifestyle is important, and speaking to a professional will help determine an individual's needs. Here are some questions renters may consider before choosing a policy:

• What is covered by my policy?

• How much coverage do I need?

• If there is a break-in and something is stolen, will insurance provide coverage to replace it?

• Am I protected if something happens to me while I am out of my apartment?

• What happens if someone gets injured in my residence?

• Are items found in my storage locker covered?

For renters, the threat of losing valuable personal belongings or being liable for injuries is a common concern. For more information about rental insurance, please visit www.tdinsurance.com or call 1-888-791-5346.

Source: www.newscanada.com
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Identity Theft: Forewarned is forearmed

2009-01-12T09:23:00.000-08:00

(NC)—According to a recent a cross-Canada survey on identity theft conducted by Sigma Assistel, a Desjardins Financial Security subsidiary specializing in telephone assistance services, one in 15 Canadians have been a victim of identity theft. Close to one in six knows someone who has been victimized by this crime and four in 10 expect that they will likely become a victim sometime in the future.
What is identity theft?
It occurs when someone obtains another person's personal information without consent (such as a credit card number, driver's license, social insurance number, date of birth, etc.) to commit a crime like fraud. Once armed with this information, an identity thief can easily defraud victims of thousands of dollars.

Luckily, there are steps that you can take to prevent this crime from happening to you.
Five easy steps to protect yourself against identity theft
• Systematically shred all unnecessary documents that contain any personal information that could be used to identify you, such as your date of birth, home address or social insurance number.

• Never confirm your PIN, credit card numbers, SIN, driver's license or other personal information over the phone or e-mail unless you initiated the request.

• Collect your mail every day. Or, if you're about to go on vacation, ask a trusted friend or member to collect it for you.

• Only do business over the web with reputable companies that have high Internet security standards.

• Use a credit card with a low credit limit when making online purchases.

Identity theft is a troubling trend, but forewarned is forearmed. Know the risks and know how to protect yourself. And if identity theft should happen to you, contact your financial institution immediately.

Source: www.newscanada.com
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It's not the size of your nest egg that counts

2009-01-05T08:57:00.000-08:00

(NC)—Whether your retirement nest egg is the size of a robin egg or an ostrich egg, what you do with your savings may matter more than how much you've saved. We all want to retire worry-free and feel secure that our hard-earned cash will last the rest of our lives.

Retirement thought leaders, such as York University's Dr. Moshe Milevsky and Manulife Investments, believe if you're retired or are close to retirement, you need to think of retirement planning in a new way. Instead of building your nest egg, you need to switch gears and focus on product allocation to help ensure you have 20 or 30 years of retirement income.

Many of us have heard of asset allocation, where we spread our savings among different asset types such as stocks, bonds, cash and real estate to reduce risk and improve savings growth. Product allocation divides our cash assets among different products, such as annuities, guaranteed minimum withdrawal benefit products like IncomePlus, and products such as mutual funds, with systematic withdrawal plans. so our money works harder for us when we aren't working.

Because everyone's retirement dream is different – some want to travel, others want to help family and friends—it's important to work with a financial advisor who understands your own goals, your comfort with investment risk and understands product allocation. They have tools and information to help determine how likely your retirement income will last and suggest how you might rebalance your portfolio to match your goals.

Product allocation is a new way to look at funding your retirement years because it will better protect retirement income. Make an appointment with your financial advisor to find the right retirement solution for you.

Source: www.newscanada.com
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Retire without running out of money

2008-12-30T08:22:00.000-08:00

(NC)—For generations, financial advisors have told clients to sock away savings for their golden retirement years.

But as millions of Baby Boomers near that precious time, many worry if they can really afford their current lifestyle in retirement, as they face new financial challenges. Inflation, stock market performance and outliving their savings are all top of mind when it comes to life after work.

Since Canadians are living longer than ever before, they need to fund 20, 30 or more retirement years. Even though many of us have put money aside, it's clear that savings alone won't ensure financial security for this new generation of retirees.

As we get ready to retire, we need to switch away from saving money and concentrate on creating income based on our savings. The key is to find a mix of different investment types that could provide secure, ongoing income that will last throughout our after-work years. Your financial advisor can do this by using a new financial planning approach called product allocation. Together you'll focus on dividing your savings into different types of products such as annuities, guaranteed minimum withdrawal benefit products like Manulife Investments' IncomePlus and products such as mutual funds, with systematic withdrawal plans to strike the right retirement balance for your situation.

Product allocation is a new way to look at funding your retirement years because it will better protect retirement income. Make an appointment with your financial advisor to find the right retirement solution for you.

Source: www.newscanada.com
Visit us online at: www.thenewsleader.ca

What's your plan?

2008-12-20T15:02:00.000-08:00

(NC)—Many Canadians dream of a comfortable retirement to travel the world, winter in warm climates, take up new hobbies and spend time with family and friends. But how many of us have an after-work income plan that lets us live our perfect retirement?

Saving isn't enough to help ensure we'll have enough money to last throughout our retirement. We know healthcare costs will increase and inflation will eat away at our dollar's buying power. That's why we need a solid retirement income plan.

With the help of a financial advisor, you can take savings one step further and create your own plan to reduce the risks that can threaten your nest egg in those important years leading up to and in the first few years of retirement. Manulife Investments' new planning approach called product allocation can help create ongoing retirement income by dividing and balancing your savings into different product types, so you can live the retirement you want.

Product allocation is a new way to look at funding your retirement years because it will better protect retirement income. Make an appointment with your financial advisor to find the right retirement solution for you.

Source: www.newscanada.com
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The hottest gift this holiday season: RESPs

2008-12-15T08:23:00.000-08:00

(NC)—Shopping for the perfect gift can sometimes feel like searching for a needle in a haystack or an Olympic sport with masses of shoppers hurtling over one another for that last must-have toy on the display. The time, thought and sheer mayhem of it all is enough to turn you from being jolly Saint Nick into a sour Scrooge.

Instead of the standard holiday gifts that are often quickly forgotten, such as sweaters or video games, why not give a loved one something completely unique that will only increase in value as time goes on.

With the rapidly rising costs of university and college tuitions, many parents and students are concerned about how they will fund their academic future. Gift-givers can ease that stress this holiday season by giving them an RESP (Registered Education Savings Plan). Through an RESP, family and friends can contribute to a child's future education and contributions to the plan grow tax-free over the life of the plan.

“RESPs make great gifts because it's a solid investment in the recipient's future,” says Linda Knight, president and chief operating officer, BMO Mutual Funds. “While they might be too young to appreciate this gift now, in time they'll be grateful for the support.”

Anyone can open an RESP account as long as they have a valid social security number. While there is no yearly contribution limit, the lifetime contribution limit for each beneficiary is $50,000. Funds can be withdrawn by the beneficiary once he or she is enrolled in an approved post-secondary education program. Funds withdrawn can be used towards tuition costs as well as living expenses.

Even better, the Federal Government also contributes through the Canada Education Savings Grant (CESG). Through this grant, the Government of Canada contributes 20, 30 or 40 cents for every dollar saved – depending on family income – directly into the RESP.

Whether a loved one is five months old or five years old, it's never too early to start saving. In fact the sooner you start contributing to an RESP the better the investment growth. For example, if Aunt Rita gives her two-year-old nephew Jack a $150 RESP contribution yearly for 16 years (assuming a 5 per cent rate of return), Jack will have more than $6,000 to use towards his tuition by the time he's 18.

Working with an investment professional can help you determine the best way to save for your loved one's education. At BMO Bank of Montreal, you can meet with a financial planner at any branch, free of charge and they will work with you to create a customized and practical plan. Visit www.bmo.com for more information.

Source: www.newscanada.com
Visit us online at: www.thenewsleader.ca

Six worst errors when building your business

2008-12-12T08:35:00.000-08:00

1. Being too reliant on one person, typically the business owner.

By relying entirely on one person you are setting yourself up for disaster if he or she gets sick and cannot run the business. You should have trusted partners or skilled employees trained and able to take over in the event of an emergency.

2. Not having a proper accounting system in place.

Good bookkeeping is essential to the success of your business. "Hire a capable and effective CPA to assist you and keep you on top of all accounting-related government rules and regulations," says Paul MacDonald, senior vice president, Aon. "There are also easy-to-use computer programs available to assist you in keeping track of your financials."

3. Underestimating the financial requirements of the business.

Be honest with yourself about financial requirements. Most entrepreneurs underestimate the required start-up capital. If you consider that you are likely going to lose money in the first six months to a year of your new business, you need to ensure that you have arranged for sufficient capital to cover operating losses.

"Most entrepreneurs also underestimate the importance of insuring their business. According to MacDonald," All entrepreneurs should consider their insurance needs carefully to protect themselves and their business against workplace accidents, theft, property damage and other calamities."

4. Not understanding your target market.

Understand everything you can about your customer. Get market research reports on their demographics, preferences, geographic distribution, and disposable income. You need to understand the needs of the market before going ahead with your product or service. During a period of recession it might not be the right time to start a high-end retail operation, but what about credit counseling?

5. Underestimating time and personal commitment involved in starting your own business.

Most small business owners work more hours for themselves than they ever did for someone else. There is a large amount of sacrifice involved in owning your own business and you have to be prepared for the commitment of both time and money.

6. Overestimating your abilities and not looking for help.

Perform a SWOT analysis on yourself. What are your strengths and weaknesses? Be clear about what you can and cannot do for the business and hire, or seek advice from, people who can help the areas in which you are weaker.

More information on the dos and don'ts of small businesses is available online at www.aon.com.

Source: www.newscanada.com
Visit us online at: www.thenewsleader.ca

Give a boost to your small business

2008-12-09T08:49:00.000-08:00

(NC)—Small business owners often start up businesses based on a deep personal passion. They bring their own special talents to the products and services they offer to consumers – talents that are more enjoyable and often far removed from the many "paperwork" details that take up so much of a working day.

"Small business owners can fill in the gaps between what they like to do and what they have to do, by having better and easy access to relevant resources," says Rina Pillitteri, national director, Small Business, RBC Royal Bank. "That's where the expertise of larger organizations such as banks comes into play."

Pillitari adds that in addition to providing personalized products and advice to clients, RBC also provides online resources to all small businesses. RBC's website, www.rbc.com/tips, provides advice on key aspects of starting up and growing a business, including:

• Matching financing solutions to your needs
• Keeping your cash flowing
• Building a better business
• Making sense of taxes
• Opening a business deposit account

People who visit the site have the opportunity to submit tips of their own – the website is an interactive meeting place, where small business owners and aspiring entrepreneurs can share and learn from the real life experiences of others.

For more information, call 1-800-ROYAL-20 (769-2520) and to find valuable Small Business tips and resources online, please visit www.rbc.com/tips.

Source: www.newscanada.com
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Don't let growth in your business catch you by surprise

2008-11-30T13:26:00.000-08:00

(NC)—Although you work hard to grow your business, it can sometimes happen when you least expect it.
"Growth can bring you many benefits, including decreased costs due to economies of scale, increased personal wealth, enhanced business reputation and improved access to financing," says Rina Pillitteri, national director, Small Business, RBC Royal Bank. "The key is to effectively manage this growth, even when it catches you by surprise."

Here are some tips to help manage growth in your business:

• If the growth is only temporary, there are short-term resources such as outside services or facilities available to you.

• If you expect the growth to be permanent, you'll need to create a long-term business plan as quickly as possible. Make sure it addresses processes and resources that are needed to meet these higher demands.

• If you need more time to establish permanent resources, wherever possible, try to stretch your timelines or temporarily slow down other areas of your business until you get these set into place.

• Stay profitable! You don't want to let your business become overextended while you try to meet unexpected demands. Look into alternative sources of cash – speeding up your billing processes, using personal capital, tapping into emergency funds or borrowing.

For more information, call 1-800-ROYAL-20 (769-2520); to find valuable Small Business tips and resources online, please visit www.rbc.com/tips.

Source: www.newscanada.com
Visit us online at: www.thenewsleader.ca

How to help your small business succeed

2008-11-24T09:00:00.000-08:00

(NC)—Do you own a business? Thinking about starting one up? Before you do, consider this: research shows that many small businesses fail because they lack a solid business plan and a market idea that is different from their competitors. Surprisingly, many small business owners spend far too little time developing a strategy, assessing current business practices, and making the necessary adjustments in order to reach their goals.

"Many new businesses fail because the owner spends too much time on administrative tasks and not enough time on growth strategies," says Rod Dobson, President of ADP Canada. "Instead of asking themselves if they can afford to outsource lingering administrative pains like payroll and HR, entrepreneurs should be asking themselves if they can afford not to."

Small business owners are regularly preoccupied with day-to-day grind work – tasks such as payroll, keeping track of employee hours, taxes, and so on. If the owner is too busy running the business, when will they have time to think about strategy? And if they're not thinking about strategy, who is?

"A business will succeed if it's focused on what's important – customers, growth strategy and the competition," continues Dobson. "Winning entrepreneurs leave the administrative side of the business to third party providers, like ADP."

Opting for outsourced payroll and HR solutions that seamlessly handle your administrative processes can increase accuracy, improve efficiencies, and allow companies to focus on the core components of their business.

To find out more about how outsourcing can benefit your business, please visit www.adp.ca.

Source: www.newscanada.com
Visit us online at: www.thenewsleader.ca

How to reduce payroll headaches

2008-11-10T09:37:00.000-08:00

(NC)—If paying employees meant nothing more than writing cheques and handing them out on time, more employers would do it themselves. But as most owners are realizing the do-it-yourself approach to payroll doesn't pay, because there's also the recordkeeping, calculation and payment of specific taxes, and management of year-end paperwork for the company and its employees. Make a mistake and you could end up on the wrong side of Canada Revenue Agency, facing penalties and even interest on money owed.

Not only that, but one study shows it's actually more expensive to do it yourself than hand it off to the experts. According to the ADP Price of Payroll study, outsourcing saves nearly a third of the time it takes to manage payroll processes, working out to the equivalent of saving $939 per year for many small businesses.

"In most cases, it costs less than the price of a cup of coffee for each employee paycheque handled by ADP. But the real value to most entrepreneurs is the time they save," says Rod Dobson, President of ADP Canada. "If you're big enough to have an employee, you're big enough to outsource."

Payroll companies like ADP are experts at calculating payroll taxes and track regulation changes closely, ensuring that employment tax reports and end-of-year paperwork are submitted correctly and on time.

Could your business benefit from outsourcing its payroll? Here are some considerations:
• Accounting: Is someone at your business up-to-date with the latest best practices in areas such as cost accounting, payroll and year-end tax planning?
• The law: Are you familiar with the Canadian Bill 198 and/or US-based Sarbanes-Oxley Act and how they could affect you and your own internal controls?
• Security: are your computer systems and facilities for internal company and employee data secure? Do you have technical support staff in place to implement safeguards and protect your information?
• Growth: Is there a possibility that you may one day sell your company or offer shares to investors? That won't happen if your business isn't compliant.
To find out more about how outsourcing can benefit your business, please visit www.adp.ca.

Source: www.newscanada.com

Five characteristics to look for in top sales performers

2008-11-03T08:10:00.000-08:00

(NC)—Why is it so difficult for sales managers and business owners to recruit and retain highly productive, professional salespeople?

Research has shown that 55 per cent of people engaged in selling are in the wrong profession. Another 20-25 per cent possess the essential attributes to sell, but they should be selling something other than what they are currently selling.
It takes a special kind of individual to succeed in sales. Here are five key qualities that are essential for success:

Empathy
Empathy is the ability to identify with customers, to feel what they are feeling and make customers feel respected.
What to look for:
• Ability to identify and react accurately to the behaviour and emotions of customers
• Identifies with other people's feelings/frustrations objectively without necessarily agreeing with them
• Ability to establish rapport easily and put people "at ease" in their presence
• Good listening skills
• Curiosity—the candidate asks questions that require more than a yes or no answer

Focus
A person with focus is internally driven to accomplish goals and can stay attentive to one topic. They are able to organize themselves and recognize what needs to be done in order to achieve their goals. In a salesperson, focus produces best results when it is balanced with empathy.
What to look for:
• Goal-orientated and has the ability to articulate their goals clearly and assign timelines
• Does not depend upon the sales manager for direction or guidance
• Possesses the self-discipline and conscientiousness to service customers and develop the business from that customer on successive sales calls
• Clear, direct answers to interview questions

Responsibility
A person with a strong sense of responsibility does not place blame on other people when placed in a difficult situation. This type of person, referred to as an "agent", gets things done and when obstacles arise, accepts any errors or omissions that have occurred. You should strive to hire agent-type representatives.
What to look for:
• Possesses an appropriate sense of urgency, as exemplified in the need to see the sale progress and to bring situations to a resolution
• Anticipates consequences and evaluates alternatives before acting
• Tends to not have excuses for a situation and take action when required
• Maintains a positive outlook towards situations and people—tends to admire, and not to criticize
• Can accept valid criticisms and suggestions for performance improvement

Optimism
A salesperson with a healthy amount of optimism has persistence—a trait that is critical in the sales world because of the frequency of rejections salespeople experience.
What to look for:
• Initiative and the ability to focus on opportunities and solutions
• Focus on what can be done as opposed to what cannot be accomplished
• Refusal to allow rejection on one sales call to affect their ability to perform on the next
• Persistence in forcing an important issue even in the face of possible rejection

Ego-drive
Ego-drive is similar to optimism in that both traits require persistence. But ego-drive is persistence for the purpose of succeeding and above all winning. It's all about competitiveness.
What to look for:
• Enjoys competitiveness and constantly looking for ways to measure themselves against their peers
• Possesses leadership qualities and is not afraid to exert pressure to influence others
• Enjoys sales as a profession as it provides personal gratification and ego enhancement
• Determined to win and willing to take risks

The Canadian Professional Sales Association (CPSA) is a national association of nearly 30,000 sales professionals from across Canada. More information is available online at www.cpsa.com or toll-free 1.888.267.CPSA (2772).

Source: www.newscanada.com

Are you prepared for the future?

2008-10-27T09:40:00.000-07:00

(NC)—In an online poll conducted by the Canadian Professional Sales Association (CPSA), salespeople were recently asked about how confident they were, if something were to happen to them, that a successor could step into their roles. While 32 per cent of respondents expressed unshakeable confidence in their own or their company's ability to fulfill their responsibilities, the balance of survey respondents were not as assured with 30 per cent somewhat confident, 23 per cent not very confident, 15 per cent not confident at all and two per cent unsure.

Business leaders often speak of their most important assets as the ones that walk out of the door each day; however, few leaders have developed plans or implemented strategies to plan for the future. A surprising 54 per cent of Canadian private business owners do not have a plan outlining the future ownership of their business while 38 per cent have an informal, unwritten plan and only 10 per cent have a formal, written succession plan.

Even more worrisome is the fact that large number of senior leaders and SME owners are also approaching retirement age with one in six of Canada's working population aged between 55 and 64. Younger workers change jobs more frequently, taking their technological savvy and knowledge with them. With that said about 80 per cent of professional knowledge is lost when employees leave a company. Despite the high risk and cost of losing intellectual capital, a majority of companies still have no plans for managing and transferring knowledge that factors in cross-generational challenges.

The Canadian Professional Sales Association (CPSA) is a national association of nearly 30,000 sales professionals from across Canada. . More information is available online at www.cpsa.com or toll-free 1.888.267.CPSA (2772).

Source: www.newscanada.com

Sales training guarantees your ROI

2008-10-20T09:11:00.000-07:00

(NC)—Successful sales managers recognize that an ongoing training program is a key element in developing the skills of their sales team, as well as ensuring they stay sharp and at the top of their game.

Sales training is a significant investment when one considers not only the financial cost, but also the opportunity cost of taking your sales team off the road for several days to attend the training. Like any investment, you want to ensure that your organization generates a significant return on that investment (ROI).

The first step to ensuring a ROI is to understand the level of performance that you are starting with, the baseline. From a quantitative perspective this can involve understanding the key sales metrics for your organization, such as number and dollar value of proposals, and the closing ratio. Add a qualitative perspective to this through ride-alongs and observation of the sales team in action. A well structured observation form should provide significant information about their performance baseline. This information can then be compared to post training sales metrics and ride-along observations to quantify and qualify the improvement.

It is also important to ensure that your sales team is committed to learning the material and developing an action plan to implement their newfound knowledge and skills while seeing that the sales leadership team is actively involved in the process.
Another way to ensure your sales team is committed to learning and applying the training material is to test and certify the team post training. This is a process offered by the Canadian Professional Sales Association (CPSA), through their Certified Sales Professional (CSP) designation. Research shows that 86 per cent of CSP's said they now have a competitive advantage in selling and almost two-thirds increased their sales by 15 per cent or more. And after all, aren't increased sales what a measurable ROI for sales training is all about?

The Canadian Professional Sales Association (CPSA) provides training for all sales levels and roles, highlighted by our Skills for Sales Success programs. Training formats include public seminars, customized programs, performance consulting and online learning. More information is available online at www.cpsa.com.

Source: www.newscanada.com

Life-long learning is key to sales and personal success

2008-10-14T14:01:00.000-07:00

(NC)—With a sales talent shortage being forecasted, the competition for top sales performers is projected to become even fiercer. Professional development is key to maintaining the health and well being of your sales career. It is important to update your skills and become a student of the sales game.
Why should you update your skills?
Like technology, sales skills can become outdated very quickly in today's business environment. Canadian business schools focus more on sales and the business of sales than ever before. There is an expectation that sales people are qualified and well trained. Despite this, some sales people have never had even basic sales training. There are also some sales people who say they know it all and don't need training. As a sales professional you can never be arrogant and say you know it all. If you truly feel that way, it is only a matter of time before you get run over by the next change in the business cycle or economic downturn.
The great sales reps look for and get training every year. They update their skills to ensure they are the best in their line of business. Many good reps now have coaches. These sales coaches work with them to set goals, to improve their performance and to help keep them on track. If you think about it, athletes have coaches; executives have coaches, so why shouldn't a successful sales rep have a coach as part of their team?

You spend large amounts of money to maintain your home, vehicles and health. If you don't do the maintenance, it doesn't take long for the car to break down, your house to start falling apart or your health to fail. Your personal development is exactly the same. If you view the cost as an investment and apply what you learn, I guarantee that your course—whatever course it may be—will pay for itself several times over.

What are the benefits of personal development?

"Life-long learning" has become a corporate catch phrase that you hear more and more often. What does it mean? For most, it means that you don't stop learning once you finish school. There are so many ways you can learn and grow. In today's fast-paced world with little "down time," we owe it to ourselves to take the time and make sure we learn new things and become better and better at what we do. By becoming a more efficient focused sales rep, you will have more time to spend with your family and friends, concentrate on hobbies and, in general, have a more balanced life.

The Canadian Professional Sales Association (CPSA) provides training for all sales levels and roles, highlighted by our Skills for Sales Success programs. Training formats include public seminars, customized programs, performance consulting and online learning. More information is available online at www.cpsa.com.

Source: www.newscanada.com

Take action now to harvest your retirement savings

2008-10-08T08:39:00.000-07:00

"Just like gardening, the keys to managing bountiful retirement savings are regular maintenance, patience and some expert guidance," said Linda Knight, President and Chief Operating Officer, BMO Mutual Funds. "Many Canadians perceive saving for their retirement to be an intimidating process, but in reality it doesn't have to be that way."

Canadian boomers can especially relate to the fall harvest and is a fitting investment analogy as they approach a new 'season' in their lives – retirement. Just as fruits and vegetables from the garden can be preserved and enjoyed at a later time when supplies are less plentiful, boomers need to create a financial strategy to safeguard their retirement savings and help them fulfill the dreams of that phase of their life.

According to Knight there are many investment tools available to Canadians today to help them grow their retirement savings. For example, the new BMO LifeStage Plus Funds provide target end dates and a Guaranteed Maturity Amount, which help investors take advantage of market growth opportunities, automatically become more conservative as the target date approaches, and protects not only the original amount invested but also the growth in the Funds if an investor remains invested in the Funds until the target (fixed) end date.

By working with a trusted financial planner, individuals can evaluate their long-term investing goals and create a personalized financial plan. Best of all, meeting with a financial professional doesn't have to be costly. Professionals are available, at no cost, at all local BMO Bank of Montreal branches.

Visit www.bmo.com for more information.

Source: www.newscanada.com

Don't get caught in a financial downpour without your umbrella

2008-10-02T16:54:00.000-07:00

(NC)—According to Murphy's Law, if anything can go wrong it will. Whether it's a car breaking down during rush-hour traffic or the furnace combusting in the middle of winter, we've all come face-to-face with Murphy's Law.

Saving for a rainy day is something all Canadians should do, but with debt and saving for retirement, Canadians often forget to save for life's little "surprises."

Linda Knight, President and Chief Operating Officer, BMO Mutual Funds, offers the following tips on how Canadians can effectively save for a rainy day.

Establish an Emergency Fund – Start contributing to an emergency fund as you would your retirement fund. A general rule of thumb that financial planners recommend is to set aside three months worth of living expenses for emergency purposes.
No Dipping – Although it might take discipline and a strong will, don't dip into your emergency fund to purchase unessential items like clothing or the latest tech gadgets. An emergency fund is for emergencies, and money should only be withdrawn in serious situations.

Make Your Emergency Fund Work As Hard As You Do – Instead of having your emergency fund sit idle in a savings account gaining minimum interest, invest the funds in a non-registered investment vehicle that guarantees the original principal while increasing the potential for growth. Starting January 1, 2009 such an investment could be held in a Tax Free Savings Account (TFSA). The TFSA will allow Canadians to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes. Because you can withdraw funds from the TFSA at any time for any purpose, they are an ideal way to save for a rainy day.

"Many Canadians forget that non-registered investments can be a lifesaver during unexpected situations," said Knight. "I would recommend using a mix of GICs and mutual funds that can be accessed easily if needed in an emergency. "

To learn more about establishing an effective emergency fund, meet with a trusted financial planner at your local BMO Bank of Montreal branch for free. Visit www.bmo.com for more information.

Source: www.newscanada.com

Are Canadian small business owners heading into retirement unprepared?

2008-09-29T08:48:00.000-07:00

According to 2008 research conducted by BMO Bank of Montreal, only one-fifth of entrepreneurs in the twilight years of running their business have named a successor. The same study found many business owners are concerned that the sale of their business won't sufficiently subsidize the retirement lifestyle they want.

"Many business owners have invested their lives into their enterprise and the prospect of separating themselves from day-to-day operations is an emotionally charged experience," said Linda Knight, President & Chief Operating Officer of BMO Mutual Funds. "But for the long-term health of their business and personal wealth, these hardworking entrepreneurs need to contemplate an exit strategy well before the exit occurs, and a financial professional can help facilitate this process."

Young entrepreneurs should begin envisioning their retirement and exit strategy on day one or as early as possible. Waiting until the last possible moment is simply too late in the game to fully maximize the potential of the business. For those in the later stages of their enterprise, getting professional help now to coordinate a succession plan, as well as to secure appropriate retirement funds, is a must.

Those business owners who are in the habit of investing much of their income directly back into their business might want to reconsider. Knight recommends a diversified portfolio that stands well outside of the business as a means of protecting one's livelihood and long-term financial security.

"If you put all your money into your business and something goes wrong with either the business or economic landscape, you could be left with nothing. Better to spread the wealth into more secure investments, such as GICs that will be there for you when you need them the most."

Whether you're just starting out or on the verge of transitioning to retirement, it's wise to get advice from an investment professional. A financial advisor can help you craft your investment profile to meet the needs of your planned retirement lifestyle and help you ensure you get what you want out of your golden years. For more info, visit www.bmo.com.

Source: www.newscanada.com

Small Business Corner: Avoiding HR burnout

2008-09-25T08:05:00.000-07:00

(NC)—Everyone knows that having the right people can make or break a business – especially a small business. The trouble is, many entrepreneurs don't have the time or the know-how to manage their HR needs, and many say it keeps them awake at night.

"Employees want their HR issues addressed quickly and efficiently, regardless of the size of the business," says Rod Dobson, President of ADP Canada. "Disorganized HR practices often lead to employee departures, which can be a major setback for an entrepreneur."

But hiring a full-time HR person often isn't affordable for small businesses. It's a myth that only large companies can afford to outsource HR-related processes. Countless small businesses are taking advantage of business administrative services companies for a broad range of affordable, tailor-made services, such as:

• Employee record-keeping
• Management of salaries and pay grades
• Tracking employee benefits and absence plans
• Documentation of employee performance and attendance
• Management of government compliance requirements
• Streamlining recruiting and hiring
• Development of strategic career and succession plans
• Link-ups to payroll systems

"Entrepreneurs don't get into business because they like dealing with HR chores," says Dobson. "In fact, most business owners tell us every minute they spend on HR is another minute they're not out building their company."

To find out more about how a business administrative services provider can benefit your business, please visit www.adp.ca.

Source: www.newscanada.com

Small Business Tips: Make credit work for you

2008-09-04T16:51:00.000-07:00

(NC)—For small business owners whose personal resources can be stretched, financing a business or its growth becomes a critical concern. For many, strategically managing business and personal credit is the difference between creating a large legacy of success and closing up shop for good.

There are many options for both new and existing businesses to secure financing to expand or start a new venture: government grants, venture capital firms and private foundations are examples. Of course, some also turn to relatives or friends who are willing to place their trust in what is hopefully a sound investment.

Banks and other financial institutions are great business allies for those looking to maximize their growth potential. By providing customized solutions based on a business's individual need, entrepreneurs can uncover equity to help achieve both short and long term business goals. Options may include personal credit – for example, credit cards, vehicle loans or home mortgages – or business credit.

Some types of business credit options include:

• Short-term loans – probably the most common type of business credit. Usually paid off within a year and can help a business temporarily in need of assistance overcome a brief or seasonal lull in cash flow.

• Intermediate-term loans – typically have maturity dates between one to three years and can help businesses increase their working capital, open new offices or purchase new equipment.

• Long-term loans – usually arranged when the scheduled repayment is expected to exceed one year. Assets could be a new building or land, or a new computer system. The principal is repaid over a period of time and is directly related to the useful life of the asset.

Customizing loans to best suit the needs of a business is common – and critical – when dealing with any bank or financial institution.

"Business owners must make credit decisions based on their needs and their business profile," said Christine Morris, vice president of TD Canada Trust Business Banking. "Repayment schedules and interest rates can be flexible enough to assist a business as it is today and where it wants to be tomorrow."

A financial injection can be just the boost a business needs to grow to the next level. You can see what business credit options can do to help grow your business online at www.tdcanadatrust.com/smallbusiness.

Source: www.newscanada.com

Business News: It's hip to be green

2008-08-25T08:18:00.000-07:00

(NC)—Environmentally friendly business operations are beyond just being a trend – they are now standard business practice. Environmental awareness will continue to grow. Consumers will start to take more notice. And businesses will need to ensure they meet the new standards.

Recycling is no longer good enough. Businesses are taking steps to minimize environmental footprints and to implement sustainability programs that reduce the amounts of waste in their offices and business operations. Companies without a long-term environmental plan now find themselves at a competitive disadvantage.

"Over the past few years, there has been a huge shift in consumer attitudes about the effect businesses have on the environment," said Christine Morris, vice president of TD Canada Trust Business Banking. "At TD, we are very proud of the success of our environmental approach – and being recognized as a leader by our customers is a big bonus for us."

The Department of Foreign Affairs and International Trade's Greening Operations has a number of tips that companies can implement right away to make their offices more environmentally friendly. Here are just a few:

1. Turn off equipment when it's not being used. This can reduce the energy used by 25 per cent; turning off computers at the end of the day can save an additional 50 per cent.

2. Encourage communications by email. Only one out of every nine sheets printed is used as a final draft.

3. Upgrade to more efficient equipment. Consider purchasing a machine that performs all fax, copy and print functions. Look for Energy Star qualified products.

4. Choose suppliers who take back packaging for re-use.

5. Use green products and services in the local community. The less supplies or service providers have to travel, the less energy is used.

Businesses also can look outside their offices to support environmental awareness and action programs. For example, 2008 marks the 15th anniversary of the TD Great Canadian Shoreline Cleanup – the second largest clean-up in the world. Last year, a record 50,000 volunteers cleaned up 1,240 sites and removed 87,489 kg of harmful litter from shorelines across Canada.

Going green is no longer just a trend. Companies will need to act now to compete for consumers that specifically seek out businesses aggressive in their environmental efforts.

More information on the TD Great Canadian Shoreline Cleanup is available at www.vanaqua.org/cleanup.

Source: www.newscanada.com

A small business thrives with community support

2008-08-19T08:21:00.000-07:00

(NC)—From coffee shop franchises to local corner stores, small businesses have a huge economic impact on communities across the country.

Industry Canada defines a small business based on the number of employees. For example, a goods-producing firm is considered small if it has an employee head count under 100. For service-providing companies, the cut off is 50 employees.

There are nearly 1.1 million small businesses in Canada according to Industry Canada, the majority of which – almost 75 per cent – have less than 10 employees.

What is not included in this count of small businesses are franchises of larger companies established in communities across the country. While these types of businesses get support from their parent companies, the majority operate independently.

Whether it is a sole proprietor newspaper stand or a sandwich shop franchise, small businesses face unique challenges, particularly when there is a dip in the economy. These can include maintaining cash flow, hiring and retaining quality employees or securing additional financing to increase working capital, open new offices or purchase new equipment.

"All small business owners share the same challenges and successes – be it lowering costs, growing with the community or finding the means to retain talented and loyal staff," said Christine Morris, vice president of TD Canada Trust Business Banking. "From providing jobs to stimulating the local economy, these businesses can be economic drivers in their home communities. Supporting these businesses just makes good business sense."

Whether you're looking to acquire a proven franchise or expand a self-owned business, financial institutions such as TD Canada Trust have dedicated small business advisors to help you turn your dream into a reality. More about options available for your particular business needs can be found online at www.tdcanadatrust.com/smallbusiness.

Source: www.newscanada.com

Work from home: costs and benefits

2008-08-10T18:19:00.001-07:00

(NC)—Consider taking the plunge and get ready to dive into your own home-based business. But, before you make your final decision, be sure to weigh all of the costs and benefits.

You will need supplies, a separate business telephone line, a computer, software and a high-speed Internet connection. But that's just the beginning.

"People tend to focus on office costs, such as equipment and supplies," says chartered accountant Bruce Ball, partner, National Tax of BDO Dunwoody LLP in Toronto. "But one of the biggest costs involved, if you are making the transition from being an employee to starting your own business, is that you will no longer receive vacation pay and have pension, life insurance, or health/dental care benefits."

Keep in mind that you will be performing most tasks by yourself. "There are significant costs associated with the time required to perform the necessary 'administrivia' related to any business," says chartered accountant Garnet Lasby, CEO of Integrated Business Intelligence Corporation in Hamilton. "Even the smallest business needs to perform bookkeeping tasks, manage payroll and look after tax filings."

Home business owners often neglect to purchase insurance or forget to factor in marketing costs. "Product liability or errors and omissions insurance can be very expensive, and is often overlooked until there is a problem, such as a lawsuit, by which time it is too late," says Lasby. "Marketing can also be costly, but customers have to be able to find your products and services."

Be sure to set aside enough money to pay your income taxes, since they will no longer be deducted automatically from a paycheque. "You may also want to adjust your spending habits and establish a larger rainy day fund to help manage dry spells," says Ball.

Benefits associated with starting a home-based business include flexible hours, being your own boss, and saving the time and money associated with commuting.

"You will also be able to take advantage of a wider variety of tax deductions, including deducting costs relating to your home office," says Ball. Deductible home-office expenses include rent, mortgage interest, realty taxes, insurance, utilities and maintenance. The percentage of space in your home that you use for your office will determine the amount you can claim.

Many home-based business owners do earn as much or more than they did when they were employees. "And even if their paycheque is slightly smaller, the additional family time and flexibility often make up for it," says Lasby.

Before you start your home-based business, consult a chartered accountant.

"Your CA can help you make sure you receive all the tax deductions you are entitled to," says Ball.

Adds Lasby, "CAs can advise you on almost any facet of your home-based business, from initial business planning, to start-up, to operation."

Source: www.newscanada.com

Financing your education

2008-07-31T16:37:00.000-07:00

(NC)—Any type of education is beneficial and there are costs involved. The key is knowledge and management. The cost of post-secondary studies in Canada has risen dramatically over the past 15 years and university undergraduate tuition fees have nearly tripled since 1990 and college fees have more than doubled (Source: "Working to Learn: Meeting University and College Costs", June 29, 2006, Canadian Student Council of Learning)
Although employment earnings and personal savings are the principal sources of funds for most post-secondary students, the rising costs of education is making it increasingly difficult for part time income and savings to cover these costs alone. (Source: "Working to Learn: Meeting University and College Costs", June 29, 2006, Canadian Student Council of Learning) More and more students are taking on debt to cover the cost of their post secondary education. Although debt is often viewed as a scary word, if it is balanced with a sense of financial responsibility and a set budget, you can control it instead of letting debt control you.

All About Student Loans

Once all the bursaries, grants, scholarships and savings have been summed up, it still may be possible to be one of the thousands of students that require financial aid. Although government student loans tend to be top of mind amongst most, it is important to also consider what financial institutions like CIBC are offering in terms of loans and lines of credit, as each hold their own unique benefits.

Government Student Loan
Bank Student Line of Credit/Loan

What’s the Same

- Government student loans are intended to cover only your basic needs and may not cover all your additional expenses.
• You must inform the government each year that you are still a student.
• Within 6 months of graduating, you must start repaying the principal with interest (varies by province)
• Pre-authorized payment plans are available so your loan payments are withdrawn directly from your bank account each month.
• Bank student lines of credit/loans are intended to supplement your savings and may not cover all your out-of-pocket school expenses.
• You must inform the bank when you graduate
• After graduation you have 6-12 months to start repaying your principal
• Pre-authorized payment plans are available so your loan payments are withdrawn directly from your bank account each month.

What’s Different

• Government student loans provide up to 60% of your assessed need.
- The size of government student loans varies among students based on the assessed need.

Available to students enrolled in at least 60% of a full course load

• Government student loans do not charge interest while you are in school so you don’t make payments until you graduate.
• You can receive as much as $40,000 over 4 years from a financial institution (more funds are available for certain disciplines like Medicine).
• The eligibility restrictions for these loans are not based on assessed need.
• In most cases, someone else will be required to guarantee your loan.
• Available to full- or part-time students.
• While you’re in school, you make interest payments only on the amount you have borrowed but you can make payments on the principal at any time.
• You can make a payment towards your loan at any time. This can help you get a head start on future repayments and establish a good credit rating.

For more information on financial guidelines visit http://www.cibc.com/ca/features/financial-guidebook.html

Entering university or college is an exciting and enriching adventure. Find out more information on student borrowing solutions by calling 1-800 465 CIBC (2442) and talk to a CIBC advisor today or simply visit our website at www.cibc.com.

Source: www.newscanada.com

Working Income Tax Benefit not the same in every province and territory

2008-07-21T08:09:00.000-07:00

(NC)—The Working Income Tax Benefit (WITB) is a refundable tax credit intended to provide tax relief for eligible, working low income individuals and families, including those with disabilities who qualify for the disability tax credit.

Different WITB calculations and maximum amounts apply for residents of British Columbia, Nunavut and Quebec, as compared to the rest of Canada. But no matter which province or territory you live in, use the Canada Revenue Agency's online calculator to estimate the amount of the WITB you may be entitled to receive. After you apply for the WITB, the Canada Revenue Agency will also send you a notice that explains your benefit amount.

Other factors on which the WITB amount is calculated include your income, if you have children, or if you qualify for the disability tax credit. In the latter case, you could be eligible for the WITB disability supplement in addition to your basic amount. You can find out what the amounts are for your province and territory and how to apply for WITB advance payments at www.cra.gc.ca/witb.

- News Canada

Pimping your home? Start with your PC

2008-06-21T14:30:00.000-07:00

(NC)—Home renovation shows are a regular feature on the airwaves, filling the insatiable demand among homeowners to make their living space unique. For most people that means a mix of colours, new furniture and carefully chosen artwork.

But as Canadians begin to think about their next home renovation, they're starting to include their home computer in their design plans. Few know this better than Murat Erbatur, president of MCM Integrated Technologies. MCM specializes in tricking out homes with the concept of "intelligent living" – a world in which the entire home is run by a PC.

"Most people use their PC to send email or surf the Web. I have a different vision – in my world, the PC is like a butler, personal assistant and security guard all in one," says Erbatur.

Most PCs today come standard with a media centre feature, built right in. A new HP machine, for example, will come loaded with the Microsoft Windows Vista operating system, which turns the computer into a powerful, all-in-one entertainment device, allowing people to access their favourite music, photos, TV, movies and online media from the comfort of their couch. But that's just the beginning. Companies like MCM can also extend the features of Windows Vista beyond just entertainment. By further employing intelligent living, all lights, heating and cooling systems and home security technology can be run through a PC and maintained over the Internet or via a mobile device.

And it's not just limited to the indoors. Users can tune garage door openers to be controlled through the computer, as can sprinkler systems and other electrical systems. There's no more worrying about whether or not you turned off the stove – your PC can help warn you when an appliance has been left on and fix it from any location.

The bottom line, according to Erbatur, is that the home of the future can be had today. "People may not know the potential power of their PC. By taking advantage of our intelligent living vision, people can truly make their home a more unique and enjoyable place to live – one that's sure to wow everyone," he adds.

- News Canada

Easy steps for a greener home office

2008-06-16T10:51:00.000-07:00

(NC)—Whether your home office is your 9-to-5 work space or a homework hub, it is likely housing a collection of batteries, empty printer cartridges and the like. In addition to these cluttering items, home offices also generate paper and electricity waste — often unnecessarily.

Recent data shows that more than four out of five Canadian households (82%) have used, broken or outdated office items such as phones, PDAs, inkjet and toner cartridges and rechargeable batteries — items that are probably headed for the garbage instead of being recycled or properly disposed of.

Chris Winter, Executive Director of the Conservation Council of Ontario urges people to think twice before tossing home office waste in the trash.

"If we each change our individual habits a little bit, together we can make a big difference in the health of our environment," said Winter

Winter urges Canadians to take advantage of municipal household hazardous waste programs to properly dispose of items such as toner cartridges and cell phones, or bring them to in recycling drop offs like those found in all STAPLES Business Depot stores in Canada.

In addition to properly disposing office waste, here are other tips to work towards a greener home office

• Plug your office equipment (computer, monitor, speakers, printer, scanner, etc.) into a power bar that can be turned off when not in use (a computer running 24 hours a day can use up to $120 worth of electricity every year!);
• Use natural cooling techniques in the summer, such as shades and fans, instead of air-conditioning;
• Use recycled and unbleached paper products; look for high percentages of Post-Consumer Content;
• Send electronic copies of documents instead of hard copies whenever possible and only print double sided documents;
• Choose reuseable and refillable products instead of disposables (i.e. rechargeable batteries and refillable toner cartridges)

- News Canada

Spring is here time to organize. Simple organizing tips for your home office

2008-06-01T14:33:00.000-07:00

(NC)—Now that spring is here, Canadians are on the path to clean and organize their homes. Everyone is looking for a fresh start to the season and STAPLES Business Depot offers a few easy tips and suggestions on how to organize your home.

"From garbage bags to recycle bins to magazine and letter holders to shredders, filing cabinets and safes," says Pete Gibel, vice president, STAPLES Business Depot. "Staples offers a vast selection of products to help get you started and stay organized."

Before taking on the self-designated task of spring cleaning, there are a few essential things you will need before you get started:

1. Garbage & clear recycling bags

2. Plastic totes for storage of winter clothing, heavier blankets and linens.

3. Shredder: shred personal documents and protect yourself from fraud. Shred old statements, mail and other personal documents to help protect your identity. Don't cheat the tax man; ensure you keep all the required documents in the event you are audited.

4. Recycle bins: whether you are eliminating old magazines, cleaning out the fridge or cabinets, be environmentally friendly and recycle.

Once the essential tools to getting started are in place, here are few tips to keep in mind before taking on too much spring cleaning at one time:

1. Frame of mind: there is no enjoyment in tackling not so fun tasks if you are not in the right frame of mind.

2. Make a list: determine what you want to accomplish and be realistic; one task at a time.

3. Sort: when spring cleaning determine what you want to keep, throw out, recycle and/or give away.

4. Organization tools: find the right tools to keep organized once you have gone through all the clutter.

Some items to consider in getting and staying organized are calendars or an agenda: to document dates and special occasions; pre-printed return address labels; external drives or flash drives: secure files and photographs on an external drive to manage your computer's memory and to keep them safe in the event your computer crashes; stock up on essentials like batteries, stamps, ink and toner cartridges, paper and envelopes.

Make recycling part of your clean up. STAPLES Business Depot collects old cell phones, batteries and ink and toner cartridges. One dollar from every eligible ink and toner cartridge recycled will be donated towards local schools that are registered with STAPLES Business Depot's Recycle for Education program

About community@work

Through its corporate giving program - community@work – STAPLES Business Depot is proud to partner with local community leaders to identify and support programs and initiatives focusing on three core areas: environment, education and entrepreneurship. For more information please visit www.staples.ca/community.

- News Canada

Youth are at a loss without financial education

2008-05-17T14:30:00.000-07:00

(NC)-With 56.4 million credit cards in circulation and less than half paid off monthly, credit card debt is a growing problem in Canada. New research from the U.K. shows that young people are particularly at risk.

According to London-based Financial Services Authority, 29% of 16 to 24 year olds don't know how to prepare and manage a weekly budget. 67% of university students are in debt and students use credit cards as if they are cash machines with no risk.

Young people frequently don't understand the consequences of not paying off their monthly charges. This shouldn't be surprising, when you think how one quarter of Canadian adults do not have any savings for the future, and more than half of adults in BC do not have a financial plan. The question is, how to get them on track? Most experts agree that early education about financial life skills is the key.

Here in British Columbia there are a number of resources available to help get students started right. One award-winning course created by the B.C. Securities Commission has been made available to over 1,200 teachers in all 60 school districts since November 2004. The resource's innovative approach blends the use of fictional characters with real-life financial activities and decisions in a hands-on, activity-based format. With each financial topic, students learn important concepts such as budgeting, savings, investing, and investment fraud. "This is definitely a unique and fun way for students to learn about finances," says Kathy Weninger, teacher and vice principal at Mount Boucherie Secondary School in Kelowna. "The fictional characters definitely provide an innovative way for students to experience a variety of financial situations they may encounter throughout their lives."

The financial life skills resource is part of a number of investor education programs offered through the BCSC InvestRight program. Additional information on InvestRight can be found online at www.InvestRight.org.

- News Canada

Learn financial life skills

2008-05-13T16:48:00.000-07:00

(NC) - This year, instead of resolving to lose weight, get fit, or become a top-notch organizer, why not learn something newthe financial skills you need to manage your money. Financial life skills involve knowing where to get financial information, understanding concepts like savings, budgeting, and financial planning, and knowing how to avoid becoming the victim of fraud.

New research shows that four in 10 adult Canadians have been approached with a fraudulent investment scheme. Half were introduced to the fraud through someone they trusted, such as a friend, family member, or work colleague. One in 20 Canadian adults, or 5%, have actually become a fraud victim.

The British Columbia Securities Commission (BCSC) recently launched the InvestRight.org website to help investors develop their financial life skills. Here are the most important tips on the site to share with friends and family:

Learn the 5 red flags. We'd all like to find a great investment that guarantees financial security, but some offers are just too good to be true. If someone offers you "guaranteed high returns with no risk", an investment based on "insider tips", or a "tax free offshore investment", watch out. The investment might be a scam. Other red flags to watch for are investment pitches that promise you can "profit like the experts", or try to pressure you into an investment because friends or family have invested and "your friends can't be wrong".

Know your risk tolerance. How much risk do you feel comfortable with? How much risk can you afford to take? Your appetite for risk will depend on your personal goals, life stage, lifestyle, and knowledge. Take the BCSC's InvestRight risk test at www.investright.org/risklimit.aspx to find out your personal risk tolerance.

Discover the basics of investing. The complex world of stocks, bonds, mutual funds, and options can be intimidating. We know the importance of earning a return on our money and planning for retirement, but we may not know how to start an investment program that will meet our financial goals. Take the time to research the basic dos and don'ts before you invest your hard earned money.

Report suspected scams. The BC Securities Commission investigates complaints about the sale, recommendation, or marketing of securities in British Columbia. If you suspect that an investment opportunity is really a scam, report it by calling the BCSC at 1-800-373-6393.

- News Canada

Should you lease or buy a car?

2008-05-05T09:59:00.000-07:00

(NC)—Are you in the market for a car? Start off in the right direction with these tips.

Use
How you intend to use the car determines what makes the most financial sense, according to Chartered Accountant Sylvain Campeau a senior tax manager with Collins Barrow LLP in Ottawa.

"Your specific needs are instrumental in deciding the best approach. Will you change cars in three or four years, or keep it for the long term? Is it for personal or business use? How important is your comfort level? Remember that extras like four-wheel drive and a great sound system add up."

Affordability
Chartered Accountant John Lokker, chairman and CEO of National Traffic Services in Brampton, says it's a question of cash flow.

"What is your disposable income? The more you spend, the more you lose. A car can depreciate as much as 30 per cent when it leaves the lot."

Don't overbuy if you are tight financially. With a low down payment (less than 10 per cent of the purchase price), leasing is a simpler means of obtaining a vehicle, but you still need to buy insurance.

Tax Perspective
Tax is one component of the decision. But first you must determine if you are even eligible to claim your car expenses as a deduction.

As Campeau explains, "Leasing may be more beneficial from the tax perspective, but the tax savings must compensate you sufficiently over the long term.

"Many people want to save taxes and think it justifies leasing a higher-end vehicle where the tax savings are higher. Generally, you can claim up to $800 per month on a lease. If you are buying a car, you can claim depreciation only on the first $30,000.
While an $800 lease will give you a higher-end car than a $30,000 one, despite the higher tax savings you still may not be financially ahead. If you have to spend more to save taxes, then you are out of pocket and not saving at all," Campeau adds.
Aside from tax savings, it may pay to keep your current car for up to 10 years, if it has a good repair record and you like it.

Mileage and Penalties
"Leasing is more complex," explains Lokker, "with different issues at stake. Determine the residual value — your cost to buy the vehicle at the end of the lease — and also the mileage.

"Mileage is critical. When arranging your lease, you must set an anticipated mileage – the more mileage, the more your monthly payment. Should you exceed the allowable mileage, the penalties are significant — as high as 10 cents per kilometre or more. It's often cheaper to buy out the lease than pay the penalty."

Lokker goes on to suggest, "Consider the lease term against the warranty on a new vehicle. While you will pay less to lease, you will have nothing at the end. By buying, you have a car you can rely on with no worries about mileage and maintenance while under warranty.'

Both CAs agree — do your homework first. Then you can be confident that you are making the decision that is right for you.
More information on this topic is available from a Chartered Accountant.

- News Canada

What small business owners need to know about income tax

2008-04-30T16:04:00.001-07:00

(NC)—A strong small business sector is key to a healthy Canadian economy. Running a business is hard work, especially keeping your paperwork and tax obligations up to date.

This spring, the Canada Revenue Agency (CRA) is providing the following tips to help small businesses.

• Small business owners should explore the necessary requirements for business registration. Registration is different from incorporation and has different implications for taxes. The CRA's Web site has everything you need to know at www.cra.gc.ca. Under "Business," select "Business registration."

• Some businesses need to charge taxes on the goods and services they supply. Others do not. To find out what the rules are for your business, visit www.cra.gc.ca. Under "Business," select "GST/HST."

• Completing all necessary tax returns correctly is important. The CRA's Web site has a lot of helpful tips and information on how to do that. Be aware that small business owners can file returns as sole proprietors, partnerships, or corporations, depending on how the business has been set up. The CRA's Web site has a breakdown of all three.

• Be prepared to back up every claim you make with proper receipts and paperwork. If you can't prove it, don't claim it. Visit www.cra.gc.ca. Under the A to Z index, select "Topics for business," and "K" for "Keeping records."

- News Canada

What are the tax benefits of working from home?

2008-04-21T08:52:00.000-07:00

(NC)–Many self-employed Canadians now work out of their homes, and if you are among that rapidly burgeoning population, you are probably aware that you can deduct a portion of your home office expenses. While it can be a bonus to deduct some of your household expenses, you must be sure to follow the specific rules that have been set out by Canada Customs and Revenue Agency or CCRA, more commonly known as Revenue Canada.

Here are some rules for determining home office expenses:
• Expenses must relate to work space that is either your principal place of business or used exclusively for the purpose of earning income from the business. For the second criterion to apply, the space must also be used on a regular and continuous basis for meeting clients, customers or patients. Setting up a computer and a filing cabinet in a corner of the living room may NOT entitle you to claim home office expenses. Be sure to check with your professional tax adviser.
• Home office expenses can only be deducted from the business carried on in the home and cannot be used to create a business loss. Eligible expenses that you cannot use in the year they are incurred can be carried forward to subsequent years and deducted from income generated from the business at that time.
• In general, it’s not a good idea to claim depreciation on the portion of your home used for business purposes, as there may be tax implications if you ever sell your home. By not claiming depreciation, your entire house may be regarded as your principal residence–that way any gain realized on the eventual sale of your house may be tax-free.

Excerpted with permission from Smart Tax Tips by Grant Thornton LLP, a leading Canadian firm of chartered accountants, management consultants and business advisers. For more information log on to www.GrantThornton.ca

- News Canada

How to become mortgage free faster

2008-04-10T08:24:00.000-07:00

(NC)-Buying a home is often the largest and most fulfilling investment you will ever make. Home ownership in most cases, involves the responsibility of carrying a mortgage. Most mortgages are paid over a 25 year period. Here are some tips to help you pay your mortgage off faster. Not only will this reduce the number of years you'll be making mortgage payments, paying your mortgage off faster can add up to big savings! There are basically two ways to "pay down" your mortgage and get out of debt faster: make lump sum payments or accelerate your regularly scheduled payments.

Making Lump Sum Payments
You can make a one-time or annual lump sum payment on most closed mortgages. The amount of the lump sum payment usually varies by product and financial institution, but typically ranges from 10% - 25% of your original mortgage amount. For example, if you have a 10% lump sum privilege and you pre-pay $8,000 each year for 5 consecutive years on an $80,000, 5-year mortgage term, you could save as much as $87,575 in interest and become mortgage-free in 8.28 years! This example is based on a mortgage with a 9% interest rate per annum and a 25 year amortization.
• Set aside a lump sum each year to apply against the balance of your mortgage. You can save thousands of dollars in interest and shorten the time it will take to pay off your mortgage.
• Don't forget that you can make a lump sum payment of any amount without having to pay any associated prepayment costs on your mortgage renewal date. Even a small lump sum payment can add up to big savings.

Stepping Up the Regular Payments
There are two ways you can increase your regular mortgage payment. Any increase in your regular mortgage payment is applied directly to the principal and it therefore reduces the length of time it takes to pay off the mortgage.
• Increase the amount you pay on the principal. This can range from 10% to 100% depending on the financial institution you are dealing with. Topping up your payment is a great way to do this. For example, round up your payment to $700 if your regular mortgage payment is $662. The difference will be applied directly against the principal.
• Choose accelerated payments by increasing your payment frequency. For instance, pay the equivalent of 13 monthly payments over 12 months.

To find out more on how to become mortgage free faster, please contact your local CIBC branch or call 1 800 465-CIBC (2422) to talk to a Personal Banker. You can also visit the CIBC website at www.cibc.com.

- News Canada

10 healthy reasons to invest in health sciences

2008-04-10T08:23:00.000-07:00

(NC)-If you're thinking about how and where to invest your money this RRSP season, it's worth giving some thought to investing in the Health Sciences sector. Here are a few good reasons why.

1. Growing demand for health care - across Canada and around the world.
2. A sector that is relatively insulated from economic ups and downs.
3. Large global markets with tremendous unmet health care needs.
4. Biotechnological and technological advancements that are changing lives faster then ever before.
5. Patent protection for health sciences companies that encourages research and boosts profits for up to 20 years.
6. State-of-the-art technology that's turning today's medical discoveries into tomorrow's miracle cures.
7. Big pharmaceutical firms partnering with biotechnology firms – meaning faster & more economical means of filling their product pipelines to replace existing drugs that are coming off patent.
8. An opportunity to invest in great health sciences companies at historically low prices (remember: "buy low, sell high").
9. An opportunity to empower companies developing cures and therapies that could improve our quality of life.
10. The potential for above-average returns - by investing on the ground floor.

For more information, ask your advisor about the Canadian Medical Discoveries Funds, or visit www.cmdf.com.

- News Canada

Choosing a bank that's right for you

2008-03-30T13:13:00.000-07:00

It is important to select the right bank. Do NOT choose any bank-be fussy!
There are two main objectives to seek when searching for a new bank. 1.)
Find a bank that is aggressively seeking new business. 2.) Choose one with
which you can develop a personal relationship.

To select a bank that is aggressive, simply watch for extended advertising
campaigns. They are very costly, and must bring in new business in order
to be continued.

Look also for smaller banks, ones with just a few offices. They tend to be
more aggressive, more lenient on qualifications, much friendlier and more
personalized in the service they offer. They are forced by nature of their
competition to be more flexible.

With the small, independent bank, you will get friendly service, and often
will be called by name. The tellers remember you and do not need to request
your identification every time you want to cash a check. Small banks do not
have a large loan committee that spends lots of time shuffling papers.
They may however, stall your loan application for a day or so in order not
to appear too anxious! Its a minor issue...and not one to be overly
concerned about.

Big banks seem to have forgotten that the customer is number one. You will
be far more pleased with your small bank and your personalized service when
it comes to getting loans and other services for your own business.

- GCFN

The misconception about business in the Summer

2008-03-30T13:12:00.000-07:00

Whoever started the nasty rumor that mail order business is very slow
during the months of July and August is dead wrong. In case you are new
to the world of mail order you are likely to believe this rumor.

The sad part is that a lot of people in the business really believe it!
Why do they believe it? Because they have been told by someone else and the
rumor was considered "gospel" - so that someone told someone else and so on,
and on, and on.

What people don't realize is that there is foundation to this rumor. The
only reason the mail order business MAY slow down in the summer months is
because of the nature of the product being sold. Try selling winter clothes
in July!

Some people will go so far as to stop advertising during the summer months
because they are convinced they won't get any sales. Because of the drop in
revenue for publishers, due to this line of thinking - everybody suffers
and they keep the rumor alive and true. Only people believing this lie is
making it happen. Nothing more!

Think about it this way: Don't people still read magazines and newsletters
during the summer? I've never seen Globe or The Enquirer stop publishing
during those months. Don't people still open their mail during the summer?
I don't think the whole world stops paying their electric bill from July to
September - and it comes through the mail.

And it would seem to me that the majority of the population would have MORE
TIME to read and study offers through the mail during their vacation than
during their working hours. Don't people watch more TV, spend time at home
catching up on neglected chores and sleeping during their vacation? So if
these people have more time to relax during their vacation, wouldn't they
have more time to dedicate to reviewing your ads and circulars that come
through the mail? Lillian Vernon even keeps busy during the summer months!
Isn't she a part of mail order like us too? If the big companies are still
doing business during the summer months - what makes the smaller dealers
any different? Like I said before - "who" started this rumor. It couldn't
have been originated by the big companies could it?

It will probably be hard for a lot of you to choke down this concept
immediately. You have been programmed for years that the mail order business
is slow in the summer months. You have convinced your mind that this rumor
is true. It will take awhile to re-program your mind to the truth and hopefully
this report will help you.

There are so many people "hung up" on the statistical data of exactly how
to run a mail order business. Here are some other rumors:
1. Handwrite your envelopes instead of using a peel-n-stick address
label. (Come on folks - this is the 1990's - the age of the computer.
Nobody has time to sit down and hand address 1,000 envelopes anymore.
This rumor might have worked back in 1920 when the average mail order
dealer only mailed 10 or 15 envelopes per week - but we are mailing
100 times that amount now.)
2. Only mail on Tuesday to arrive by Friday. (With all the inconsistencies
in our postal system and UPS, you can never be guaranteed the day your
letter will arrive. Everyday is a business day! It doesn't matter what
particular day you mail. This is nonsense.)
3. Dress your envelopes up to attract attention, such as placing sparkles
and hand-drawing diagrams on the outside. (This is nonsense! In fact,
this only cheapens your envelope. YOU have a business and your
correspondence should appear like you are an established business.
We're not playing pen-pal games here and we're not teenagers anymore.)
4. Mail in a window envelope so the person receiving it will think it's
a bill or check. This way they will open it faster. (Bull! Any
established business opens all their mail. In fact, I never pay any
attention to the outside of the envelope. I open them all! What matters
the most is the content of the material inside and how it's presented.)

Now - please do the mail order industry a great big favor and pass the word
around. Let's keep busy making our businesses work like businesses. Don't
hold yourself back because of all these nasty rumors.

- GCFN

Overcoming start-up blues

2008-03-30T13:11:00.000-07:00

Most small business owners who have managed to survive the proverbial
first 2 years in business probably started out thinking mail order was an
easy business to get into.
Chances are the experience would have been a fun-filled nightmare they may
not want to experience again. Sure, it was full of fantasy and hope. But
it also means a lot of hard work and long hours.

When trying to figure out where you want to take your business financially,
it is common for entrepreneurs to extrapolate numbers based on their
advertising budget. This style is perennial among mail order people who equate
advertising as the foundation of their operations.

This approach sounds very logical and statistical, but it doesn't happen
like that in the "real world" of mail order! Well, maybe once in a blue
moon, but most of the time - it just don't happen. It's not always because
your offer is bad or the price is too high. And it's not always because
your mailing list was bad. Often times, the reason lies in the fact that
you and your company are unknown.

But one of the most important reasons this statistical data only works well
on paper is that most beginners are not skilled in the area of TARGET
MARKETING. Yes - that word is vital to the money your business will make.

Target marketing is the process of focusing on a select and specific group
of people you are advertising to. And it has everything to do with the
product you are selling.

For example, if you are marketing infant products, it would be very unwise
to stage a direct mail campaign on a random list.

How many times have you got a mailing that went in the trash just because
it was selling a product or service you have no interest in? See what I mean.
If the company mailing these catalogs and advertisements would have
pre-qualified you or I and target-marketed their items correctly - we would
have never received them. It is wasted money for the company!

But how can you pre-quality or target market your audience before placing
an ad? If you are a beginner, it will take some time before you are
experienced enough to do so. However, you can always get a sample copy
of the publication first and see what items other people are advertising.
Then, test your ads in the smaller mail order publication that offer
low-cost advertising until you refine your ad and hit the right market.
As soon as you begin generating responses to your ads, keep in contact
with these customers and grow from there. They will bring you more customers
like themselves because "birds of a feather flock together."

Therefore - SLOW DOWN a little - but if you don't slow down, you could easily get ripped-off
and lose a lot of money. Just like attending college - you won't get a
Master's Degree the same day you begin classes. It takes 3-4 years!

Take your time to get to know some of the pros and read what they have to
say. Survey and study the market. Read and educate yourself by investing
time into study. Start out in mail order like you would start working for
any company - at the bottom. Learn the tricks of the trade. Make friends
and associates with "good" dealers and stick with them. Honor your word and
work dealerships to the advantage of yourself as well as others.

Mail order is only a process by which products are advertised and delivered
to consumers. It works for any product and works for anybody. You don't have
to be rich, educated or a certain age, color or heritage. You don't have to
wear certain kinds of clothes or have your hair styled in the latest craze.
The only limitations are your own abilities and confidence in yourself.
I know because I started out really poor and brought my business up to
a thriving, self-supporting home business!

- GCFN

How small businesses affect our economy

2008-03-30T13:06:00.000-07:00

Very few of us are aware of the contribution small businesses make to the
American economy. According to the Small Business Administration, in 1988,
the United States had approximately 19 million businesses. Of those, 15.7
million were operated as sole proprietorships - the businesses that
traditionally train the work force by employing young people in their first
jobs and women returning to the work force in local or part-time jobs.

Of the remaining 3.3 million corporations and partnerships, a full 99.8%
employ fewer than 500 people and are classified as small businesses for
Small Business Administration programs. And of the 10.5 million jobs created
in the private sector between 1980 and 1986, 6.6 million (or 63.5%) were
created by small business!

Since people who own and operate their own business take "pride" in their
work, it is common for their quality and efficiency to be much higher. In
many cases small businesses are known for providing their customers
personalized and customized, high-quality products and services.

Just compare a "temp help" in a big company with an independent home-business
owner. If a temporary is hired for 40 hours per week, he or she may not give
the customer-company 40 hours in production. Part of those 40 hours is spent
on orientation, gathering office supplies, getting the computer turned on and
paper loaded, etc.) This breaks down the actual time spent working and
producing for the company to about 25 hours, with 15 hours lost per week
through no fault of your (or their) own.

However, the home worker is different. The home worker will charge for time
actually spent on the job. If you produce 10 pages of text at a price of
$4 per page, you would charge $40 for the completed job. The company does
not pay you per hour, but for the amount of work you complete. This saves
the company money - and we mean BIG money. Now all you have to do is convince
the larger companies of this concept and your business at home will flourish!

There is only one drawback to being in a small business. People do not take
you seriously at first. Companies will try and take advantage of you when
you are not established. Why? Because they know you need the business and
they want to continue receiving "something for nothing."

If you could purchase a higher-quality product from a small business for $15,
why would you go to the mall and purchase a lower-quality version for $60?
There are many small businesses that design crafts that could never be purchased
in a store. These crafts show human pride and quality that could never be mass produced.
But why do people continue paying for lower quality at a higher price? Is it
the money-back guarantee? No, because the toys you purchase at
premium rates around Christmas time normally break and are destroyed by
December 26. Do you return them? Most people don't, so what good is a
money-back guarantee?

And wouldn't a hand-crafted product withstand more abuse than it's
store-bought counterpart? So what if you have to make your purchase at
someone's place of residence? Don't they offer a money-back guarantee also
and wouldn't they be easier to locate if you did want a refund? Wouldn't all
this be much more personable than a mall with 1,000's of screaming people
fighting you to the next Blue Light special?

Larger businesses will try and take advantage of smaller companies. Why?
Who knows. If youI had to pay $80 per hour to have yoiur computer serviced by IBM,
but you knew a small business owner could do the same job for $25 per hour,
you'd be more than happy to pay the small business their $25.

- GCFN

Prepare a business plan that guarantees big profits

2008-03-30T13:03:00.000-07:00

Success in business comes as a result of planning. You have to
have a detailed, written plan that shows what the ultimate goal
is, the reason for the goal, and each milestone that must be
passed in order to reach your goal.

A business plan is written definition of, and operational plan
for achieving your goal. You need a complete but
success tool in order to define your basic product, income
objectives and specific operating procedures. YOU HAVE TO HAVE A
BUSINESS PLAN to attract investors, obtain financing and hold
onto the confidence of your creditors, particularly in times of
cash flow shortages--in this instance, the amount of money you
have on hand compared with the expenses that must be met.

Aside from an overall directional policy for the production,
sales effort and profit goals of your product--your basic "travel
guide" to business success--the most important purpose your
business plan will serve, will be the basis or foundation of any
financial proposals you submit. Many entrepreneurs are under the
mistaken impression that a business plan is the same as a
financial proposal, or that a financial proposal constitutes a
business plan. This is just a misunderstanding of the uses of
these two separate and different business success aids.

The business plan is a long range "map" to guide your business
to the goal you've set for it. The plan details the what, why,
where, how and when, of your business--the success planning of
your company.

Your financial proposal is a request for money based upon your
business plan--your business history and objectives.

Understand the differences. They are closely related, but they
are not interchangeable.

Writing and putting together a "winning" business plan takes
study, research and time, so don't try to do it all in just one
or two days.

The easiest way to start with a loose leaf notebook, plenty of
paper, pencils, pencil sharpener, and several erasers. Once you
get your mind "in gear" and begin thinking about your business
plan, "10,000 thoughts and ideas per minute" will begin racing
through your mind...So, it's a good idea when you aren't actually
working on your business plan, to carry a pocket notebook and jot
down those business ideas as they come to you--ideas for sales
promotion, recruiting distributors, and any other thoughts on how
to operate and/or build your business.

Later, when you're actually working on your business plan, you
can take out this "idea notebook" evaluate your ideas, rework
them, refine them, and integrate them into the overall "big
picture" of your business plan.

The best business plans for even the smallest businesses run 25
to 30 pages or more, so you'll need to "title" each page and
arrange the different aspects of your business plan into
"chapters." The format should pretty much run as follows:

Title Page
Statement of Purpose
Table of Contents
Business Description
Market Analysis
Competition
Business Location
Management
Current Financial Records
Explanation of Plans For Growth
Projected Profit & Loss/Operating Figures
Explanation of Financing for Growth
Documentation
Summary of Business & Outlook for The Future
Listing of Business & personal References

This is a logical organization of the information every
business plan should cover. I'll explain each of these chapters
titles in greater detail, but first, let me elaborate upon the
reasons for proper organization of your business plan.

Having a set of "questions to answer" about your business
forces you to take an objective and critical look at your ideas.
Putting it all down on paper allows you to change, erase and
refine everything to function in the manner of a smoothly oiled
machine. You'll be able to spot weakness and strengthen them
before they develop into major problems. Overall, you'll be
developing an operating manual for your business--a valuable tool
which will keep your business on track, and guide you in the
profitable management of your business.

Because it's your idea, and your business, it's very important
that YOU do the planning. This is YOUR business plan, so YOU
develop it, and put it all down on paper just the way YOU want it
to read. Seek out the advice of other people; talk with, listen
to, and observe, other people running similar businesses; enlist
the advice of your accountant and attorney--but at the bottom
line, don't ever forget it has to be YOUR BUSINESS PLAN!

Remember too, that statistics show the greatest causes of
business failure to be poor management and lack of
planning--without a plan by which to operate, no one can manage;
and without a direction in which to aim its efforts, no business
can attain any real success.

On the very first page, which is the title page, put down the
name of your business-ABC ACTION--with your business address
underneath. Now, skip a couple of lines, and write it all in
capital letters: PRINCIPAL OWNER--followed by your name if you're
the principal owner. On your finished report, you would want to
center this information on the page, with the words "principal
owner" off-set to the left about five spaces.

Examples: ABC ACTION
1234 SW 5th Ave.
Anywhere, USA 00000

PRINCIPAL OWNER: Your Name

That's all you'll have on this page except the page number
-1-

Following your title page is the page for your statement
purpose. This should be a simple statement of your primary
business function, such as: We are a service business engaged in
the business of selling business success manuals and other
information by mail.

The title of the page should be in all capital letters across
the top of the page, centered on your final draft--skip a few
lines and write the statement of purpose. This should be direct,
clear and short--never more than (2) sentences in length.

Then you should skip a few lines, and from the left hand margin
of the paper, write out a sub-heading in all capital letters,
such as: EXPLANATION OF PURPOSE.

From, and within this sub-heading you can briefly explain your
statement of purpose, such as: Our surveys have found most
entrepreneurs to be "sadly" lacking in basic information that
will enable them to achieve success. This market is estimated at
more than a 100 million persons, with at least half of these
people actively "searching" for sources that provide the kind of
information they want, and need.

With our business, advertising and publishing experience, it is
our goal to capture at least half of this market of information
seekers, with our publication. MONEY MAKING MAGIC! Our market
research indicates we can achieve this goal and realize a profit
of $1,000,000 per year within the next 5 years...

The above example is generally the way you should write your
"explanation of purpose," and in subtle definition, why you need
an explanation. Point to remember: Keep it short. Very few
business purpose explanations justify more than a half page long.

Next comes your table of contents page. Don't really worry
about this until you've got the entire plan completed and ready
for final typing. It's a good idea though, to list the subject
(chapter titles) as I have, and then check off each one as you
complete that part of your plan.

By having a list of the points you want to cover, you'll also
be able to skip around and work on each phase of your business
plan as an idea or the interest in organizing that particular
phase, stimulates you. In other words, you won't have to make
your thinking or your planning conform to the chronological order
of the "chapters" of your business plan--another reason for the
loose leaf notebook.

In describing your business, it's best to begin where your
statement purpose leaves off. Describe your product, the
production process, who has responsibility for what, and most
importantly, what makes your product or service unique--what
gives it an edge in your market. You can briefly summarize your
business beginnings, present position and potential for future
success, as well.

Next, describe the buyers you're trying to reach--why they need
and want or will buy your product--and the results of any tests
or surveys you may have conducted. Once you've defined your
market, go on to explain how you intend to reach that market--how
you'll these prospects to your product or service and induce them
to buy. You might want to break this chapter down into sections
such as..publicity and promotions, advertising plans, direct
sales force, and dealer/distributor programs. Each section would
then be an outline of your plans and policies.

Moving into the next chapter on competition, identify who your
competitors are--their weakness and strong points--explain how
you intend to capitalize on those weaknesses and match or better
the strong points. Talk to as many of your "indirect" competitors
as possible--those operating in different cities and states.

One of the easiest ways of gathering a lot of useful
information about your competitors is by developing a series of
survey questions and sending these questionnaires out to each of
them. Later on, you might want to compile the answers to these
questionnaires into some form of directory or report on this type
of business.

It's also advisable to contact the trade associations and
publications serving your proposed type of business. For
information on trade associations and specific trade
publications, visit your public library, and after explaining
what you want ask for the librarian's help.

The chapter on management should be an elaboration on the
people operating the business. Those people that actually run the
business, their job, titles, duties, responsibilities and
background resume's. It's important that you "paint" a strong
picture of your top management people because the people coming
to work for you or investing in your business, will be "investing
in these people" as much as your product ideas. Individual
tenacity, mature judgment under fire, and innovative
problem-solving have "won over" more people than all the AAA
Credit Ratings and astronomical sales figures put together.

People becoming involved with any new venture want to know that
the person in charge--the guy running the business knows what
he's doing, will not lose his cool when problems arise, and has
what it takes to make money for all of them> After showing the
"muscle" of this person, go on to outline the other key positions
within your business; who the persons are you've selected to
handle those jobs and the sources as well as availability of any
help you might need.

If you've been in business of any kind scale, the next chapter
is a picture of your financial status--a review of your operating
costs and income from the business to date. Generally, this is a
listing of your profit & loss statements for the six months, plus
copies of your business income tax records for each of the
previous three years the business has been an entity.

The chapter on the explanation of your plans for the future
growth of your business is just that--an explanation of how you
plan to keep your business growing--a detailed guide of what
you're going to do, and how you're going to increase your
profits. These plans should show your goals for the coming year,
two years, and three years. By breaking your objectives down into
annual milestones, your plan will be accepted as more realistic
and be more understandable as a part of your ultimate success.

Following this explanation, you'll need to itemize the
projected cost and income figures of your three year plan. I'll
take a lot of research, an undoubtedly a good deal of erasing,
but it's very important that you list these figures based upon
thorough investigation. You may have to adjust some of your plans
downward, but once you've got these two chapters on paper, your
whole business plan will fall into line and begin to make sense.
You'll have a precise "map" of where you're headed, how much it's
going to cost, when you can expect to start making money, and how
much.

Now that you know where you're going, how much it's going to
cost and how long it's going to be before you begin to recoup
your investment, you're ready to talk about how and where you're
going to get the money to finance your journey. Unless you're
independently wealthy, you'll want to use this chapter to list
the possibilities and alternatives.

Make a list of friends you can approach, and perhaps induce to
put up some money as silent partners. Make a list of those people
you might be able to sell as stockholders in your company--in
many cases you can sell up to $300,000 worth of stock on a
"private issue" basis without filing papers with the Securities
and Exchange Commission. Check with a corporate or tax attorney
in your area for more details. Make a list of relatives and
friends that might help you with an outright loan to furnish
money for the development of your business.

Then search out and make a list of venture capital
organizations. Visit the Small Business Administration office in
your area--pick up the loan application papers they have--read
them, study them, and even fill them out on a preliminary
basis--and finally, check the costs, determine which business
publications would be best to advertise in, if you were to
advertise for a partner or investor, and write an ad you'd want
to use if you did decide to advertise for monetary help.

With listing of all the options available to your needs, all
that's left is the arranging of these options in the order you
would want to use them when the time come to ask for money. When
you're researching these money sources, you'll save time by
noting the "contact" deal with when you want money, and whenever
possible, by developing a working relationship with these people.

If your documentation section, you should have a credit report
on yourself. Use the Yellow Pages or check at the credit
department in your bank for the nearest credit reporting office.
When you get your credit report, look it over and take whatever
steps are necessary to eliminate any negative comments. Once
these have been taken care of, ask for a revised copy of your
report and include a copy of that in your business plan.

If you own any patents or copyrights, include copies of these.
Any licenses to use someone else's patent or copyright should
also be included. If you own the distribution, wholesale or
exclusive sales rights to a product, include copies of this
documentation. You should also include copies of any leases,
special agreements or other legal papers that might be pertinent
to your business.

In conclusion, write out a brief, overall summary of your
business- when the business was started, the purpose of the
business, what makes your business different, how you're going to
gain a profitable share of the market, and your expected success
during the coming 5 years..

The last page of your business plan is a "courtesy page"
listing the names, addresses and phone numbers of personal and
business references--persons who have known you closely for the
past five years or longer--and companies or firms you've had
business or credit dealings with during the past five years.

And, that's it--your complete business plan. Before you send it
out for formal typing, read it over once a day for a week or ten
days. Take care of any changes or corrections, and then have it
reviewed by an attorney and then, an accountant. It would also be
a good idea to have it reviewed by a business consultant serving
the business community to which your business will be related.
After these reviews, and any last-minute changes you want to
make, I'll be ready for formal typing.

Hire a professional typist to type the entire plan on ordinary
white bond paper. Make sure you proof-read it against the
original. Check for any corrections and typographical
errors--then one more time--read it through for clarity and the
perfection you want of it.

Now you're ready to have it printed and published for whatever
use you have planned for it--distribution amongst your partners
or stockholders as the business plan for putting together a
winning financial proposal, or as a business operating manual.

Take it to a quality printer in your area, and have three
copies printed. Don't settle for photo-copying..Have it printed!

Photo-copying leaves a slight film on the paper, and will
detract from the overall professionalism of your business plan,
when presented to someone you're trying to impress. So, after
going to all this work to put together properly, go all the way
and have it duplicated properly.

Next, stop by a stationery store, variety store or even a dime
store, and pick up an ordinary, inexpensive bind-in theme cover
for each copy of your business plan. Have the holes punched in
the pages of your business report to fit these binders and then
slip each copy into a binder of its own.

Now, you can relax, take a break and feel good about
yourself..You have a complete and detailed business plan with
which to operate a successful business of your own. A plan you
can use as a basis for any financing proposal you may want to
submit..And a precise road-map for the attainment of real
success.

Congratulations, and my best wishes for the complete
fulfillment of all your dreams of success!!!

- GCFN

Before you buy a franchise read this!

2008-03-30T13:00:00.000-07:00

Franchise businesses such as Wendy's, McDonald's and Jack-In-The-Box are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers.

Some franchises are very good. They treat both the franchiser and the franchisee very well. Others are very one-sided. Still others are almost total rip-offs that trap one into paying ten to fifty times the actual value of the business idea, equipment, or whatever it is they are trying to get you to buy.

Before putting any money into a franchise, you should investigate everything completely. We've prepared a list of questions you should be asking, and should get satisfactory answers to before investing.

1. Has your attorney studied the franchise contract, discussed it completely with you, and do you both approve it without reservations?
2. Does the franchise require you to take any steps which are either illegal or even border on illegal, or are otherwise questionable or unwise in your state, county or city?
3. Does the franchise give you an exclusive territory for the length of the franchise period, or can the franchiser sell a second franchise in your territory?
4. is the franchiser connected in any way with any other franchise company handling similar products or services?
5. If you answered yes to the above questions, what is your protection against the second franchising company?
6. Under what circumstances can you end the franchise contract, and at what cost to you?
7. If you sell your franchise, will you be compensated for your goodwill or will it be lost to you?
8. How many years has the firm been offering you the franchise been in operation?
9. Does the company offering you this franchise have a reputation for honesty and fair dealing among its franchisees?
10. Has the franchiser shown any certified figures indicating exact net profits of one or more of its members, and have you personally checked the figures with these people?
11. Will the franchiser assist you with: a) A management training program; b) An employee training program; c) A public relations and advertising program; d) Capital; e) Credit; f) Merchandising ideas?
12. If needed, will the franchiser assist you in finding a suitable location?
13. Is the franchising firm adequately financed so that it can carry out its sated plans?
14. Does the franchiser have experienced management, trained in depth?
15. Exactly what can the franchiser do for you that you cannot do for yourself?
16. Has the franchiser investigated you carefully enough to assure itself that you can successfully operate a profit to both of you?
17. Does your state have a law regulating the sale franchises, and has the franchiser complied with that law to your satisfaction?
18. How much equity capital will you need to purchase the franchise and operate it until your income equals your expenses?

If you can get the answers to each of these questions, and those answers satisfy you, then you're probably thinking about buying a pretty good franchise deal. However, if you're in doubt about any of these points, be sure to check it out and know the answers for certain before you invest or sign anything.

Buying a franchise can give you a measure of security, and in some cases, sure-fire profits. Business surveys show that fewer than 20 percent of all franchised businesses fail. This is in comparison to a 60 to 80 percent failure rate for ALL new businesses started in this country each year.

Information regarding specific franchising ideas can be found in the franchising directories, which are generally available at the local library. Often there will be a notice posted in franchise outlets themselves.

If you can afford the entry into this business, statistics are on your side. You are now armed with some CAUTION and STOP and GO signs!

- GCFN

The survival tips for small businesses

2008-03-30T12:50:00.001-07:00

You may be in Mail Order, Direct Mail, or you may be a local
merchant with 150 employees; whichever, however or
whatever---you've got to know how to keep your business alive
during economic recessions. Anytime the cash flow in a business,
large or small, starts to tighten up, the money management of
that business has to be run as a "tight ship."

Some of the things you can and should do include protecting
yourself from expenditures made on sudden impulse. We've all
bought merchandise or services we really didn't need simply
because we were in the mood, or perhaps in response to the
flamboyancy of the advertising or the persuasiveness of the
salesperson. Then we sort of "wake up" a couple of days later and
find that we've committed hundreds of dollars of business funds
for an item or service that's not essential to the success of our
own business, when really pressing items had been waiting for
those dollars.

If you are incorporated, you can eliminate these "impulse
purchases" by including in your by-laws a clause that states:
"All purchasing decisions over (a certain amount) are contingent
upon approval by the board of directors." This will force you to
consider any "impulse purchases" of considerable cost, and may
even be a reminder in the case of smaller purchases.

If your business is a partnership, you can state, when faced with
a buying decision, that all purchases are contingent upon the
approval of a third party. In reality, the third party can be
your partner, one of your department heads, or even one of your
suppliers.

If your business is a sole proprietorship, you don't have much to
worry about really, because as an individual you have three days
to think about your purchase, and then to nullify that purchase
if you think you don't really need it or can't afford it.

While you may think you cannot afford it, be sure that you don't
"short-change" yourself on professional services. This would
apply especially during a time of emergency. Anytime you commit
yourself and move ahead without completely investigating all the
angles, and preparing yourself for all the contingencies that may
arise, you're skating on thin ice. Regardless of the costs
involved, it always pays off in the long run to seek out the
advice of experienced professionals before embarking on a plan
that could ruin you.

As an example, an experienced business consultant can fill you in
on the 1244 stock advantages. Getting eligibility for the 1244
stock category is a very simple process, but one with tremendous
benefits to your business.

The 1244 stock encourages investors to put equity capital into
your business because in the event of a loss, amounts up to the
entire sum of the investment can be written off in the current
year. Without the "1244" classification, any losses would have to
be spread over several years, and this, of course, would greatly
lessen the attractiveness of your company's stock. Any business
owner who has not filed the 1244 corporation has in effect cut
himself off from 90 percent of his prospective investors.

Particularly when sales are down, you must be "hard-nosed" with
people trying to sell you luxuries for your business. When
business is booming, you undoubtedly will allow sales people to
show you new models of equipment or a new line of supplies; but
when your business is down, skip the entertaining frills and
concentrate on the basics. Great care must be taken however, to
maintain courtesy and allow these sellers to consider you a
friend and call back at another time.

Your company's books should reflect your way of thinking, and
whoever maintains them should generate information according to
your policies. Thus, you should hire an outside accountant or
accounting firm to figure your return on your investment, as well
as the turnover on your accounts receivable and inventory. Such
an audit or survey should focus in depth on any or every item
within the financial statement that merits special attention. in
this way, you'll probably uncover any potential financial
problems before they become readily apparent, and certainly
before they could get out of hand.

Many small companies set up advisory boards of outside
professional people. These are sometimes known as power Circles,
and once in place, the business always benefits, especially in
times of short operating capital. Such an advisory board or power
circle should include an attorney, a certified public accountant,
civic club leaders, owners or managers of businesses similar to
yours, and retired executives. Setting up such an advisory board
of directors is really quite easy, because most people you ask
will be honored to serve.

Once your board is set up, you should meet once a month and
present material for review. Each meeting should be a discussion
of your business problems and an input from your advisors
relative to possible solutions. These members of your board of
advisors should offer you advice as well as alternatives, and
provide you with objectivity. No formal decisions need to be made
either at your board meeting, or as a result of them, but you
should be able to gain a great deal from the suggestions you
hear.

You will find that most of your customers have the money to pay
at least some of what they owe you immediately. To keep them
current, and the number of accounts receivable in your files to a
minimum, you should call them on the phone and ask for some kind
of explanation why they're falling behind. if you develop such a
habit as part of your operating procedure, you'll find your
invoices will magically be drawn to the front of their piles of
bills to pay. While maintaining a courteous attitude, don't
hesitant, or too much of a "nice guy" when it comes to collecting
money.

Something else that's a very good business practice, but which
few business owners do is to methodically build a credit rating
with their local banks. Particularly when you have a good cash
flow, you should borrow $100 to $1,000 from your banks every 90
days or so. Simply borrow the money, and place it in an interest
bearing account, and then pay it all back at least a month or so
before it's due. By doing this, you will increase the borrowing
power of your signature, and strengthen your ability to obtain
needed financing on short notice. This is a kind of business
leverage that will be of great value to you if or whenever your
cash position becomes less favorable.

By all means, join your industry's local and national trade
associations. Most of these organizations have a wealth of
information available on everything from details on your
competitors to average industry sales figures, new products,
services, and trends.

If you are given a membership certificate or wall plaque, you
should display these conspicuously on your office wall. Customers
like to see such "seals of approval" and feel additional
confidence in your business when they see them.

Still another thing often overlooked: If at all possible, you
should have your spouse work in the business with you for at
least three or four weeks per year. The important thing is that
if for any reason you are not available to run the business, your
spouse will be familiar with certain people and situations about
your business. These people should include your attorney,
accountant, any consultants or advisors, creditors and your major
suppliers. The long-term advantages of having your spouse work
four weeks per year in your business with you will greatly
outweigh the short-term inconvenience. Many couples share
responsibility and time entirely, which is in most cases even
more desirable.

Whenever you can, and as often as you need it, take advantage of
whatever free business counseling is available. The Small
Business Administration published many excellent booklets,
checklist and brochures on quite a large variety of businesses.
these publications are available through the U.S.Government
printing office. Most local universities, and many private
organizations hold seminars at minimal cost, and often without
charge. You should also take advantage of the services offered by
your bank and local library.

The important thing about running a small business is to know the
direction in which you're heading; to know on a day-to-day basis
your progress in that very direction; to be aware of what your
competitors are doing and to practice good money management at
all times. All this will prepare you to recognize potential
problems before they arise.

In order to survive with a small business, regardless of the
economic climate, it is essential to surround yourself with smart
people, and practice sound business management at all times.

- GCFN

Beginners take notice!

2008-03-30T12:46:00.000-07:00

Would you send Sears $20 and expect them to know you were ordering without you specifying it in your order form? Would you send your electric company a check for $15 and expect them to know what account you were making a payment on? Of course you wouldn't - so how are mail order businesses suppose to know what you're ordering or requesting?

And a note like "Send me info" is NOT sufficient enough. Remember the rule of "who," "what," "when," and "where" we learned in grade school English? "Send me info" still doesn't tell a business what you are ordering. Most mail order businesses carry a large number of different products. If they send you information on everything they sell, not only would it cost a lot more in postage and require a 9x12 envelope - but you'll get a lot of different information on products you may not be interested in. In fact, the business may not include the information you originally requested because they had no idea what you were ordering and couldn't afford to send you everything they have.

Then, to top it off - some of these people that wrote to the mail order business requesting information will get upset and file a complaint against them because they never sent the proper information. This is a big problem we see getting bigger and bigger and I hope this report will do a small part in clearing it up.

Okay - let's be realistic. If you are guilty of inflicting pain on dealers by not letting us know what you are ordering or requesting information on don't worry. We don't hate you and want you to hang your head down and slink away in shame. On the contrary - we want your business and we want to keep you happy as a steady customer. The next time you order something, read your note or letter ONE time before putting it in the envelope and sealing it shut. Ask yourself if you have provided the business with enough information to process your order. That's all there is to it!

A correct form of writing a business letter should go something like this: "Dear (Name): We noticed your ad in (name of publication) and would like more information on (product or service). Your attention to this matter would be greatly appreciated." If you don't want to take the time to write this much, you could just cut out the ad you saw and tape onto your letterhead or a note paper. Enclose the proper stamps, money or SASE for a reply and you're ready to fold in an envelope and mail.

And by all means - place your RETURN ADDRESS on the outside of the envelope. Believe it or not, I personally receive 100's of orders per year without a return address with a few dollars stuck inside an envelope. I have no clue "what" is being ordered and even less of a clue as to "where" to send it.

As mail order dealers, we sometimes believe that we are totally alone in this business. Since most of us work by ourselves, isolated from most of the working 9-to-5 world - the dreaded "lonelinosis" sets in. But remember - just because we don't see our mail order dealers and distributors face to face, they are there. This statement may sound a little too elementary, but
sometimes we overlook the obvious. Mail order is full of fine, upstanding and caring mail order dealers. Every one of us are breathing, thinking human beings. We fall in love, have personal problems, have bad days, have slow months, have busy weeks and have lives to lead. A majority of us have children and all of us have family and friends that occupy our time.

We should all support each other and make as many friends as we can. Although the world seems like it is self-oriented half the time, the only person that can begin a change is the one in the mirror. Think of others and try and be more understanding. I think I speak for all dealers in saying that we all WANT to fill your orders and process them as quickly as possible. All we ask if that you let us know WHAT you are ordering or WHERE you saw our ad so we can send you the correct information you need the first time around.

- GCFN

The changing work world might move you

2008-03-26T15:52:00.000-07:00

(NC)—Even if you sidestep the modern trend of changing jobs often and prefer to stay with one company instead, you still may face change. You may be moved to a new office across town or around the world, or change roles as organizations evolve and adapt in search of greater competitiveness.

"The very obvious truth is that in a globally competitive environment firms are constantly having to reinvent themselves," says Professor Julie Bulmash of George Brown College's Faculty of Business. "Employers are regularly re-evaluating their needs and resources, and if that means a particular job is relocated to another city or country, the employee can stay in the job, but they'll have to move or commute."

Of course, good companies don't leave employees alone in such situations, says Bulmash. "High performing organizations have policies and practices in place to deal with these issues, and they offer the support required to help employees make the change."

Employers are not the only ones thinking differently about work. For employees, the new mobility requires adopting a different approach towards career, according to Angie Gorassi, a coordinator of human resources with GBC's Faculty of Business. "Preparing to handle having to switch gears quickly is an important employment strategy," she says. "Learning about different cultures and business practices is a real asset for students as they enter the work world – because even if you don't work outside of Canada, you are likely to encounter people from other countries working here."

Bulmash agrees. "Students and employees need to identify what their career goals are, and where they want to ultimately be, so they can be prepared for wherever their career takes them. In many organizations today, the expectation is that an employee will gain 'other-office' or 'other-country' experience as part of being promoted."

More information is available online at www.georgebrown.ca/business.

- News Canada

Rejuvenate your home office PC.

2008-03-21T11:53:00.000-07:00

(NC)—The annual ritual of spring cleaning likely extends into your home office and though mopping up dust bunnies and reorganizing filing cabinets may be your first inclination, don't neglect the centerpiece of your small office. Take some time this spring to refresh your computer.

• Update security features
Without proper security software, the critical data and information housed in your home office is vulnerable to external viruses and attacks. If you're running a small business, protecting your assets is paramount so invest in reliable and efficient security software. A tool like Norton 360 will defend your PC against a broad range of threats, so get up to speed on all your firewall, anti-virus and intrusion detection needs.

• De-clutter your desktop
Home office computers may be more apt to being overloaded with non-work related files and programs. Organize your desktop so the least necessary files such as photos, home videos and MP3s are categorized in separate folders. Also, remove or turn off unnecessary icons, like Messenger, which can really decelerate your system.

• Dust, wipe and spray
Appearance counts, so be sure to thoroughly clean your hardware. Using a static free brush, remove as much debris from the keyboard as possible, and lightly dust the top of any added PCI or graphics cards in the computer. Using a can of compressed air, spray every part of the system's interior, including corners, fan grids and partly enclosed areas.

- News Canada

Tax benefits of business vehicles

2008-03-12T15:32:00.001-07:00

(NC)—If you use a vehicle for business, the operating costs may be tax deductible.

"The portion of the cost which is deductible is equal to the ratio of the employment/business-use-kilometres divided by the total kilometre usage for the year," says Chartered Accountant Don Scott, tax partner, Welch & Company in Ottawa.

"For example, if 50 per cent of the kilometres you drive are related to business/employment use, then 50 per cent of the operating costs are deductible. Certain costs relating to the depreciation of the car, lease payments and interest expense may be restricted in the amount that is deducted for tax purposes."

"If you qualify to file an automobile expense claim and are considering the purchase or lease of a new vehicle, or are incurring the cost of repairs to an existing vehicle, it may make sense to do so before the end of the calendar year so that the costs are deductible in that year," advises Scott.

For further information about taxes, contact a Chartered Accountant.

- News Canada

Get paid to do what you love to do

2008-03-12T15:31:00.000-07:00

(NC)—The famed Chinese philosopher Confucius said that if you choose a job you love, you will never have to work a day in your life. The challenge, however, may be figuring out just how to get paid for what it is you love to do. Denise Richard, the Chair of Immigrant Education at George Brown College, says reaching the goal of having a career you love is very possible.

A first step, is determining what kind of job you will love most – to get there Richard suggests following three steps:

1. Assess who you are and what you love to do, generally. Look at what you enjoy doing in your spare time, examine past working experiences and list what you liked and didn't like. Be honest – for instance, if you don't like people, a career in retail is probably a bad idea.

2. Make a list of the limiting factors in your life. Do you have a family to support? Are certain jobs ruled out because of where you live? (The opportunities to be a farmer in downtown Toronto are few, for example.)

3. Use the various tests, readily available online, that can direct you to the kind of professions best suited to your needs and personality. Such tests are usually quite accurate, and very helpful.

Once you've got a clear sense of what you love to do, what your limits are, and what professions you're suited for, you can begin to research those professions. After that point it's just a matter of getting the necessary qualifications, and then you're well on your way to doing a job you love.

More information about career options is available online at www.georgebrown.ca.

- News Canada

Create an ideal home office - big or small

2008-03-10T08:18:00.001-07:00

(NC)—Many small business owners agree that when working from a home office, separating 'home' from 'office' isn't always easy. Often, the 'small' in small business is lost as multiple pieces of office equipment and numerous files consume valuable square footage. Here are a few helpful hints from Epson Canada to create a streamlined workspace in any size room:

1. Streamline your work area. While open concept designs have become synonymous with today's modern living spaces, the good news is they have been designed to be low-maintenance and multifunctional. When establishing a home office in an open or tight area, remember that efficiency is the name of the game. Invest in a sleek laptop that can be pulled out or hidden away. Also look for versatile furniture that can play double-duty in your room, such as bi-level or folding tables, ergonomically friendly living room chairs and cabinets with decorative doors that hide files and office supplies.

2. Pick multitasking tools. To save additional space, choose office equipment that performs more than one function, like an all-in-one printer. Those in the Epson Stylus line, for example, offer full-featured printing, scanning, copying, and select models offer faxing. This type of printer takes up less space, and reduces overall operating costs.

3. Be innovative when organizing files. The best way to minimize your workspace footprint is to ensure every document has its place so that nothing strays. Be diligent in applying the OHIO, or Only Handle It Once, rule to keep your to-do list manageable. Make full use of file cabinets and/or file organizers. If you need to keep a copy of everything, scanners are a great solution for storing documents and reducing paper clutter.

Separating your home from your home office space is essential to productivity. When creating your workspace, keep your work style in mind and remember that smaller areas can function as well as their larger counterparts if well organized.

- News Canada

Tax Time: Things people try to claim

2008-02-27T16:05:00.000-08:00

By Sarah Thomas

(NC)—Tax time is a time when Canadians are willing to try just about anything to legally reduce their tax bill. So before you collect up your receipts, here is some advice on what deductions you can and can't claim.

Cleo Hamel, a Senior Tax Analyst with H&R Block (hrblock.ca), has heard just about every possible reason to make a claim on a tax return.

"Maternity clothes are not considered a medical expense by Canada Revenue Agency and pets with people names cannot be claimed as dependents," says Hamel. "However, our tax system does allow you to challenge the guidelines if you believe you have a legitimate deduction that the CRA will not let you claim."

The tax courts can side with the taxpayer. For example, the court decided a farmer was allowed to claim cat and dog food because they were outdoor pets meant to keep wildlife away from their blueberries.

Many people incur expenses directly related to their job but unfortunately, most of these cannot be claimed against employment income. For the serviceman required to get a haircut every two weeks, it was still considered a personal expense.

"The Canada Employment Amount will give working Canadians a little credit for their jobs," explains Hamel. "If you had employment income in 2007, you will be able to claim the credit."

Hair transplants are considered a medical expense since it is generally considered to be beneficial to the patient's health.

"You can always ask if something is covered," says Hamel. "You may be surprised to find there are already guidelines on a deduction or credit. You can file a Notice of Objection if a deduction is declined. If that fails, you can appeal to the Tax Court."

More information is available online or toll-free at 1-800-HRBLOCK.

- News Canada

Using The Internet

2008-01-24T09:39:00.000-08:00

The subject of electronic marketing will not be complete without at least mentioning the network or all computer networks, known as the Internet. Founded over 20 years ago by the U.S. military, and managed in part by the National Science Foundation, the Internet has 20 to 30 million users worldwide People who use the Internet include, entrepreneurs, executives, researchers, educators, technicians, consumers, activists, students, and military personnel. Most use the Internet to exchange e-mail, pursue special interests, search databases, and conduct business.

E-MAIL
One of the most popular uses of the Internet allows you to send and receive messages to and from people around the world from the comfort of your home computer. These messages, which are free to send, are almost always delivered faster and more accurately than regular mail. You can send messages to anyone who has an Internet address. This includes members of most online services.

It is estimated that over 4,000 e-mails per minute go through the Internet What this means to you as an information marketer is that you can conduct "direct mail" through the Internet to existing and potential customers. This will eliminate your postage and printing costs. It will also reduce the amount of time needed to process your mail.

The Internet also has mailing lists to which you can have your e-mail address added. These mailing lists are made up of groups of Internet users with similar interests. The users send messages back and forth to each other regarding relevant topics. For example, if you are selling a publication on gardening, you might want to join a mailing list of users interested in outdoor hobbies. Whenever someone sends e-mail to this mailing list, the e-mail goes to everyone on the mailing list. Sometimes the mailing list is monitored by an administrator. If this is the case, you may be limited to the kinds of e-mail you can send. If you can't find a list that has to do with your publication's topic, you can start your own mailing list and wait for others to join.

Once you join a mailing list, usually for free, you can receive 1000's of e-mails from users you have already selected based on their interests. You can then respond by sending an e-mail to each user's e-mail address. Your e-mail might be a short message where you mention how your informationproducts can help them. Rather than responding to each e-mail individually,
you may be able to respond by sending one e-mail to the entire Internet mailing list.

USENET
The Internet also has what is called, USENET newsgroups. This aspect of the Internet allows users with specific interests to forms groups and share information with each other, usually by posting messages that others can read. Unlike mailing lists, you do not need to send or receive any e-mail. You simply connect to the Internet, locate a USENET newsgroup, and read or post messages to that particular group.

Marketers can also use USENET newsgroups by finding a newsgroup that focus on interest of specific advantage to the information products being sold. You can do this by scanning the messages that have been posted. By recording users e-mail addresses, you can compile a mailing list to which you can e-mail information describing your product.

The Internet also has 100's of free databases that can be accessed to gain information on practically any subject. These databases are indexed so that you can search for information using key words or phrases. Most are run by volunteers, but, just about anyone can start one. Publishers can use these databases for two purposes. First, they are an excellent source of current
information. This information can be used to help you write your publication. Second, experienced publishers can create their own database. Once created, the database can be accessed by millions of Internet users worldwide. Your own database can contain your publication(s), much like your own BBS.

Finally, the Internet, like many online services, is scattered with 1000's of interesting computer files that is accessible free of charge to Internet users. These files are usually located in areas called special interest groups (SIGs). There are over 5,000 SIGs on the Internet.

Information Marketers can upload free reports, announcements, press releases, etc., to these SIGs for others to download. This process is known as file transfer protocol (FTP).

Using this process, Internet users can send and receive computer files all around the world. These computer files may contain more complex information than contained in standard e-mails. These computer files can contain text, graphics, sound, or they may be actual programs. They have all been created, saved, and stored by a computer connected to the Internet. You
can send and receive advertisements, small reports, or entire publications using the File Transfer Protocol.