Three things businesses must do to comply with new anti-spam law

(NC)—New legislation aimed at protecting Canadians from spam, malware and other electronic threats will soon be in force and the Canadian Radio-television and Telecommunications Commission (CRTC) urges business owners to learn more about what Canada's anti-spam legislation (CASL) means to them.

For example, businesses will need to follow three specific practices to ensure their commercial electronic messages comply with the new law:

• They must have consent, whether express or implied, from the recipient before sending an email, text or other electronic message.

• They must identify themselves and anyone else on whose behalf the message is sent.

• They must include an unsubscribe mechanism for recipients to be able to opt out from future messages.

The CRTC urges businesses to learn more about CASL. Through www.fightspam.gc.ca, Canadian businesses are provided with information to help clarify their roles and obligations under CASL and tips, tools and resources to help them get ready.

“We are committed to protecting Canadians from the harm caused by spam and other electronic threats,” said Andrea Rosen, the CRTC's Chief Compliance and Enforcement Officer. “We want all Canadian businesses – large or small-- to familiarize themselves with CASL, its regulations and our information bulletins. Even though the law is not yet in force, businesses should start preparing now by updating their practices and developing compliance procedures.”

As one of three federal government agencies (along with the Office of the Privacy Commissioner and the Competition Bureau) responsible for enforcing the law, the CRTC will investigate and act against violators. It may impose penalties of as much as $1 million per violation against individuals and as much as $10 million against businesses.

The CRTC will also host the Spam Reporting Centre: a place where consumers and businesses who are victims of spam may file complaints against violators and report spam.

www.newscanada.com

Protect yourself from spam while using electronic devices

(NC) – Canada's anti-spam legislation (CASL) aims to promote electronic commerce by addressing malicious forms of online activities. In addition to this new law, the federal government has developed a number of resources to help people safeguard their electronic devices such as mobile phones, smartphones, tablets and computers.

Along with a Mobile Protection Toolbox, the Fight Spam website at www.fightspam.gc.ca offers these and other tips:

• Install anti-spam, anti-virus and firewall protection on your electronic devices and keep them up to date.

• Reduce your risk when using public Wi-Fi networks:

- Ensure you use the correct network. Ask your host for the network name and password before surfing.

- Make use of your computer's built-in security features.Take advantage of the encryption and security features offered on many social networking sites (usually found under "privacy" or "account" settings).

- Avoid online banking or exchanging sensitive information while on public networks.

• Use a primary email address for your trusted personal and business contacts and a secondary email address for use in online activities such as filling out forms or joining communities.

• If you are unsure about an email message and it looks suspicious, don`t open it.

www.newscanada.com

Fast facts about business start-ups in Canada

• 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

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

(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

(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

(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

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

(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

(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

(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

(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

(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

(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

(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?

(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

(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?

(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?

(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

(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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