Small Business Tips for 2012

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

Review what has worked for you last year.

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

Update your sales and marketing plan.

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

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

 Update your website and online marketing strategy.

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

Create a board of advisors or mentor team.

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

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

Positive Cashflow Critical to Small Business

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

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

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

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

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

Finally, look for the best people to work for you. Don't just rely on resumes. Almost anybody can write a creative one. Use interviews to seek out true potential and look for potential personal chemistry.
 Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

The End of Low Interest Rates

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

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

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

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

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

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

Risk Management: The Financial Safety Margin

Investing is a part of our culture. Many of us invest a portion of our income for our needs, present and future. However, investing carries with it an element of risk. Therefore, it makes good sense to build a safety margin into your personal investment plans.

Playing the stock market is virtually a national pastime. However, as recent history has proven, the value of stocks can plummet, sometimes quite rapidly. Therefore, some investors will attempt to pay the lowest possible price for stocks. If the floor should fall out from under that stock, you stand a good chance of recouping most of your money.

Even if your cash flow is healthy at present, always be prepared for the inevitable. Many jobs today are not 100% secure. Take a couple of months of living expenses and tuck the money away in a savings account or money market.

The dream of many newlyweds is the purchase of their first home. Many, though, make the mistake of sinking all their available cash into that purchase and further committing both their salaries to make the monthly mortgage payment. If you can't afford the mortgage on one salary, think twice! If one job should disappear, you could face serious problems.

At the other end of the spectrum are those heading into their retirement years. Is your investment portfolio secure? Will you be able to rely on it? If you assume that the portfolio will generate a double-digit annual return, you may be surprised. Markets have proven to be rather volatile. It would be wiser to assume a much lower rate of return. Also, when you calculate withdrawals from your initial portfolio, experts advise withdrawing no more than an inflation-adjusted 4% each year. This amount will allow you to remain in a fairly stable condition, however the market moves.

Remember that investments mean risks and a safety margin is your best insurance policy.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Three Cheers for Canadian Finances

Let's face it – Canada's reputation is not one of the glitzy stars of the world. It is rather conservative, moderate, and perhaps even a bit dull at times. But, those exact qualities allowed the nation to remain strong and secure during the recent recession. At the same time that the U.S. economy has been floundering with no end yet in sight, Canada weathered the storm that lasted just eight months.

Canada's well managed banking sector was a key factor in saving the day. The country's strict regulatory system, combined with a conservative banking culture and superior credit conditions, paved the way for stability. The recession saw the loss of more than 122 banks in the U.S. Not a single Canadian bank closed and none needed bailouts.

Certainly there has been Canadian unemployment. But, our workforce shrinkage of 2.5% was half of our American neighbours.

Let's look at the GDP. Canada's fell 5.4% but that's far less than other nations like Germany's 14.4% fall or Japan that plummeted by a whopping 15.2%.

Sub-prime mortgages dealt a death blow to U.S. banks, comprising almost 20% of the mortgage market. Canadian banks were a lot more cautious and only 7% of the market was comprised of sub-prime mortgages. Furthermore, banks in Canada rarely sold their mortgages and kept a tight reign, thus reducing the risks of default.

Conservative Canadians are more reserved? Quite possibly so, if one considers personal finances. Canadian household debt measures approximately 102% of income while the U.S. ratio is 114%. When Americans had to start repaying their debts, Canadians were able to take advantage of low borrowing rates and boost consumer spending.

Do Canadians have the last laugh? Not really. The recession has hurt everyone and is far from over around the world. But, whereas the great credit bubble burst in other countries, and many are still reeling from the effects of the recession, Canada has shone brightly as a model of fiscal prudence and responsible financial management.
 
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

A Stronger Financial System

Ever wonder what happens behind the scenes of banks? For example, how does the bank manage its money?

Part of the system involves banks lending money to one another for short terms. The system is known as repurchase agreements, or repos for short. In order to raise money, a bank sells bonds or other collateral to another bank but agrees to buy back the collateral at a later date. Repos are part of a market that involves traders at the various banks trading with each other and shuffling the collateral back and forth.

All was well and good until the recent recession. The banks began to be leery of the solidity of other banks. The time proven system of trading began to fail, leaving even the healthiest of banks with a potential cash shortage.

Anticipating a possible major blow to the Canadian banking system, the Bank of Canada, together with the country's securities industries, began creating a plan to revamp the system and ensure crucial funding for the country's banks.

The plan involves establishing a central clearinghouse. Banks would no longer trade with each other but, rather, with the clearinghouse. This would eliminate questions of stability of other banks. Also, a central clearinghouse would be able to give a bank a clearer picture of their repos transactions, thus affording the bank a better way to manage its capital.

The Bank of Canada hopes that this new system will begin to be implemented by mid-2010 and will increase the overall safety and solidity of the Canadian banking system.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Corporate Social Responsibility: Better to Give Than to Receive

In a business world infatuated with inflating the bottom line, it is a comfort to know that many business leaders have not forgotten their own humble beginnings or the needs of those less fortunate than they.
 
Corporate social responsibility has been gaining momentum across Canada the last few years. Witness the fact that the annual summit conference of the Canadian Business for Social Responsibility attracts an overflow crowd of luminaries from the business world. This year's conference was even graced by the attendance of Prince Charles.
 
Business leaders have begun to realize that giving back to the communities that helped them grow is an essential part of the business cycle. Whether management supports charitable work by their employees on company time, makes available products at huge discounts for those in need, or provides services free of charge, all contribute to helping the people that helped the businesses.
 
This is not to say that corporate social actions are totally altruistic. Being socially responsible is a wise investment that is sure to pay high dividends. A public that perceives the human side of a business is far more likely to identify with it rather than with the cold corporate entity that is far removed from society.
 
Of course, it's not just about management rolling up its sleeves. Many companies encourage their employees to join their social action programs. Quite often, small company programs have a way of mushrooming into larger, community-wide programs. If the spirit is right, most people want to take part.
 
Businesses do have to take care, though, not to overextend their kindness. There is an inherent danger that could arise from wanting to "overdo it". Remember that you are operating a business for profit. Make sure that your needs are met and then begin disbursing from that point on.

Incorporate in Canada with CorporationCentre.ca

Click. You're incorporated ®

Canadian PM: Stimulus Package Temporary

On a recent official visit to China, Canadian Prime Minister Stephen Harper took the opportunity to use a press conference as a venue for giving a Canadian economic update and to send messages home about the Canadian government's stimulus package.
 

The timing of the report may have seemed slightly peculiar but a portion of the diplomatic visit was dedicated to promoting Canadian business, investments and trade with China. Harper hopes that this trip will improve and expand business opportunities with China. Canada's relationship with China is the country's second largest, aside from the U.S. Bilateral merchandise trade with China tops $53 billion a year, although China exports four times as much as it imports from Canada. China has lifted a ban on pork import from Canada, a $50 million potential market, but this is still far from an equal balance.
 

Mr. Harper sent a message home that the government's stimulus program has given a jump-start to the economy but Canadians should be aware that it is a temporary program. The government has warned that stimulus funds must be spent by March 2011 or will be lost. Government officials are quick to point out that termination of the stimulus funds will allow the current projected deficit of $57 billion to be cut in half. Opponents of the government, though, point out that trimming the deficit is not the only issue at hand.
 

The stimulus package was designed to help a recession struck nation by providing employment for Canadians. Critics note that the Harper government has not released figures on how many jobs were created through the stimulus programs. Furthermore, Statistics Canada announced that the economy had grown by only 0.4 per cent in the third quarter, a rate slower than most of the Group of Seven countries.
 

Mr. Harper paints a picture of cautious optimism yet it remains unclear whether Ottawa has indeed managed to invigorate an ailing economy.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

A Province Divided

It would appear that all is not well in Canada's westernmost province. The implementation of the Harmonized Sales Tax (HST) looms on the horizon for July 2010 and the ground underfoot is shaky with protests and counter-protests.
 

Critics of the new tax claim that the Liberal government of Gordon Campbell organized strong support from within the business community to endorse the HST. The business community refutes any such instigation by the government. Business leaders in B.C. claim that, following Ontario's lead in adopting this new tax, they realized that the inherent benefits far outweigh the disadvantages and, thus, have supported the government's tax proposals. They see the new tax as a way to stimulate the province's productivity which, according to experts, has been "dismal" for the last two decades. While big business agrees that there will be short term problems with the HST, they feel that the tax will lead to long term economic improvement in investments, competitiveness, and consumer prices.
 

Consumers are slow to give their endorsement. That which is good for business means taking more from the consumer's pocket. The bottom line is that consumers will now pay more for many goods and services that will carry the HST tag but are currently exempt from PST or GST. This disgruntlement has given way to public protest about other government policies that have not found favour with the public.
 

As a result of the recession, the B.C. government has been forced to curtail some budgets and trim expenses on existing programs. Indeed, with the new budget looming, the public is awaiting the latest round of budget cuts. A prevailing opinion is that the HST was adopted in order to funnel more money into an ailing provincial budget at the public's expense. During the election campaign, Premier Campbell pledged a deficit ceiling of $495 million. As this summer approached, that pledge grew to a whopping $1 billion and the end of summer saw a projection of that estimate being tripled. With numbers like these being bantered about, neither side is quite sure about the true economic state of the province.
 

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

Harmony in B.C.? The implementation of the Harmonized Sales Tax (HST)

July 1, 2010 is rapidly approaching in British Columbia. While it will be a national holiday as it is every year, it is also the date that the province will implement the Harmonized Sales Tax (HST). The jury is still out on whether it will be good for the province or not.
 

The answer, at this point, depends solely on who is asked. There are clearly going to be winners and losers in this new tax. The decision to implement the new tax is final. The actual impact is still theoretical.
 

It seems that the majority of the B.C. business community is clearly in favour of the HST. With 130 jurisdictions around the world using an HST style tax, B.C. simply cannot ignore joining the fray, if it wishes to compete for business investment. The province must offer the same tax advantages to the business community, lest businesses move elsewhere to obtain the benefits. Similarly, with e-commerce on the rise, retailers and manufacturers are competing with provinces like Ontario, which voted to adopt the HST.
 

A major challenge lies with the hospitality industry and other business sectors that currently don't have to charge PST, or services that don't have to charge GST. Under the new HST, these businesses and services will have no way getting back the HST. In essence, here will be the new tax burden with no relief in sight. Also, the average consumer will pay more taxes. Consumers cannot claim any portion of the HST but will pay more for products and services that are currently tax exempt but will not be so under the new HST.
 

Economists claim that implementing the HST is the right move for B.C. Come July 2010, B.C. will see if the economists are correct.
 

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

Canada Goes Self-Employed

The truth is out. The latest trend in the business world is self-employment.
 

The recent recession has manifested itself in many ways across the nation. For many Canadians who found themselves unemployed as a result of cutbacks, downsizing, etc., the choice was despair or repair. The former meant waiting until something new comes along. The latter meant channeling one's talent and energy into a new venture as one's own boss. Statistics Canada revealed some fascinating employment figures. In April of this year,some 36,000 new full time jobs were created across the country. Nearly all these jobs were from self-employed Canadians. Overall, this translates into one in six Canadians being self employed.
 

Of course, becoming self employed is easier said than done. The process requires a large measure of self determination to make your idea work. In addition, self discipline is required in no small measure.
 

It may seem like a great convenience to get up in the morning and already be at work, if you're working from home. The danger is as great as the convenience. Experts have offered various tips to help you along.
 

It is imperative to make a distinct separation between work and home lives. Temptation to get distracted with household issues is very easy. Making your business succeed requires utmost full time concentration. If you wouldn't run out for milk and the cleaning at your old job, don't do it now.
 

Remember that you used to go to work at an office? Set up a distinct office at home and go there in the morning. Keep regular hours at your office. Get dressed for work in the morning.
 

These are but a few steps in maintaining a work ethic that will enable you to focus on the task at hand; launching a successful new job with an extremely determined boss – you!

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

Is There An Employment Boom?

Recently released statistics by Statistics Canada indicated positive employment figures for November 2009. But, is the picture truly as rosy as it appears?
 

According to the figures, Canada's unemployment rate dropped by one-tenth of a percent from October, reducing the rate to 8.5 per cent. Full time jobs increased by 39,000, while part time employment increased by 40,000. While these 79,000 new jobs indicate a strong pick-up in the labour force and, subsequently reflect on a steady recovery of the nation's economy, there are a few factors to consider that may curb the euphoria.
 

First, it should be pointed out that economists agree that this pace of job growth is entirely inconsistent with the current pace of economic recovery.

Next, economists are concerned that the total hours worked declined by 0.3 per cent. In other words, more Canadians are working but less work hours are being paid. Simply put, Canadians are bringing home less money.
 

Another point noted is that almost all the new jobs – 73,000 positions – were in the service sector, primarily in educational services. It is quite possible that this gain may be an abnormal seasonal adjustment. December, therefore, may be far less positive in terms of actual job gains.
 

Economists are also concerned about weak job productivity as a result of various factors compounded to negatively impact workers' motivation.
 

Finally, self-employment fell by 32,000 jobs in November. In theory, this drop can be viewed positively. In a weak economy, self-employment gains are generally discounted. They are viewed as a fallback for unemployed Canadians who have no choice but to start their own businesses in lieu of regular work.
 

Is the Canadian job market truly on the mend? Only time will tell.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

How to Avoid Being Defrauded

As if the recession hasn't presented us with enough business and financial worries, a new item has been added to the worry menu.
 

According to the 2009 PricewaterhouseCoopers' Economic Crime Survey, some 56 percent of companies surveyed have reported falling victim to white collar crime in the last year's survey period. This number reflects a 4 point increase over the last two years. Indeed, the figures are the highest in the last six years. There has been a 10 point increase since 2003.
 

It would appear that difficult economic times increase the incentive to commit fraud as a source of income. The end result is due, in part, to a greater vulnerability of many companies whose control systems have been weakened or even eliminated due to downsizing and cost-cutting. Fewer funds are being allocated for fraud detection, prevention systems and investigation. As a result, financial fraud is increasing both from within and outside organizations.
 

Certain sectors have suffered from fraud the worst in the last year including communication, financial services, insurance, hospitality and leisure. Asset misappropriation and accounting fraud were the most common types of fraud encountered by the companies surveyed.
 

As an end to the recession is not yet in sight according to many experts, it is felt that fraud may continue to increase. Certainly, as many companies are yet to take preventive measures, there are adequate opportunities for the talented white collar criminal.
 

Canadian judges have responded to this increase in fraud crime by handing down severe and harsh punishments for those found guilty. But, the number of crimes reported far exceeds those caught. Businesses would be well advised to keep their eyes open and their systems well protected.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

Who Wants to be a Techie?

Remember the days when the computer technician worked almost around the clock to keep the system up and running, or develop that new program that would save the company? It would appear that the classic techie image is not what one might imagine. Several studies have been conducted recently and the world of IT employees has changed dramatically over the last decade.
 

     Recent industry figures indicate that 420,000 Canadians are employed in technology, nearly half of them in Ontario. The tech personnel divide into two basic categories – development and support. The development professionals, who comprise a small percentage of the field, do work incredibly long hours in order to perfect their products and get them out in the market as soon as possible. Product competition is fierce and time is of the essence. Most techies, though, work in support positions and the vast majority is employed at non-tech companies. Studies show that most of these techies work, at most, a 40 hour work week and barely 10% of them work overtime hours. No more is required. A company's IT department is no longer the mysterious room hidden in the sub-basement of the building. It is a regular functioning department of most companies, solving problems and providing services, as do other departments.
 

     As companies continually seek the youngest and brightest stars of the IT world, the question arises as to aging employees. A young employee may be computer savvy but lacks the management skills to run a department or complex system. Most IT managers come from within the ranks of the tech staff. In fact, most overtime hours are logged by older IT management staff. Generally, they help out on the technical side by day and complete their administrative tasks after hours. The higher you go, the harder you work. A far cry from days gone by when everyone went home after dark.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

Is the Competitor Your Enemy?

Running your own business comes complete with its own set of headaches and worries. Virtually every business owner has had a few sleepless nights. However, the question must be asked if perhaps we sometimes imagine problems that aren't really there. Perhaps our minds and imaginations create threats that do not materialize.
 

     A popular misconception in the world of business is that the competition is our chief enemy. While it is true that both of us are targeting the same market, it may also be true that there is enough business for both if us. Moreover, it may also be true that, perhaps, neither of us can effectively service the entire market. Furthermore, each of us may have a slightly different approach for promoting our business and both approaches are effective.
 

     The bottom line is that sometimes we expend a tremendous amount of energy in attempting to thwart the competition. But, if we were to view the competition as an ally in the business world, we could invest that energy in promoting our business.
 

     The truth is that some business leaders have learned that developing a relationship with their chief competitors can be most beneficial. After all, if the competitor wants information about your business, he will obtain it. Why not sit together and share ideas? We all can learn from others. Who is better to learn from than someone who has the same problems that you do? The old saying that "two heads are better than one" does not necessarily only mean you and your assistant. By working together with the competition – sharing ideas, establishing territories, setting standards – you can help each other conquer the world.
 
 Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®
 

How a Virtual Phone System can give your company a competitive edge – without having to spend big bucks

As the Internet brings the world closer and closer together, it’s impossible for a small business to see its competition purely at a local level.  Instead, competition has now grown to be national or international in scope, and your small business needs to have infrastructure in place to maintain a competitive edge over the competition.
 
One great tool in retaining that edge is by using a Virtual Phone System.  The basic concept of a Virtual Phone System is simple: instead of having your customers contact you and your employees at different phone numbers (sometimes in different area codes, depending on the nature of your business), a Virtual Phone System brings your whole network together, under one phone number.
 
Your client’s calls are answered by a virtual receptionist, who then routes the customer to the correct extension.  Besides the obvious streamlining for your customer, this method provides a number of additional benefits to make your company competitive on a national level:

• Always in contact, no matter where you are: With a Virtual Phone System, you can change the phone number your extension routes to instantly.  That means you can always be in contact with your customers, no matter if you’re in the office, or on your mobile. 

• Give a big company feel: Having all of your employees under one joint number gives your customers a “big company” feel – no matter if your employees are in the same office as you, or half way around the world.

Q&A extensions to free you up from unnecessary phone calls: If you have common questions you receive 

• a number of calls about, a Virtual Phone System can help eliminate the human time required to answer them, with automated Q&A extensions. Your customer can get the answers they need, without ever having to contact you directly.

Ready to gain the competitive edge you need to take your company to the next level?  Then sign up with Virtual Call System today.

Click HERE to sign up now.
 

Small Business Leadership Skills: Keep Focused

There is a condition that is common to many entrepreneurs. Many suffer from it in varying degrees. The condition is commonly known as Multiple Idea Syndrome (MIS).
 

     MIS manifests itself by creating a temporary inability to effectively focus on one's business ventures due to an abundance of new business ideas that crop up daily in the mind of the entrepreneur. The result may be impaired management techniques, lack of leadership, and reduced attention to business development.
 

     Such is the mind of the entrepreneur. One good idea leads to another and opportunity is always just around the corner, waiting to be found. However, danger also lurks around the corner. New ideas are wonderful.  But, a business has to be continually nurtured and properly cared for. If you are the spearhead behind a business, it’s up to you to provide the leadership and spirit to keep it moving.  There is a time and a place for everything. Pitching continual new ideas may not be the best management technique for your business.
 

     You have a vision of where you would like your business to go. Keep to it! Don't allow yourself to veer from the path you planned by constantly trying new ventures at the expense of the ongoing one. You are the backbone of your business and must provide the leadership for others. Inspire through hands-on management. If you are perceived as being "all over the place'" your business will suffer. Set a course of action and lead your team to follow that course.
 

     And what of new ideas? Abandon them? Of course not. Just be sure that you don't lose focus of plan one before you set plan two into motion.
 

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Some Interesting Facts About Canadian Small Business

They may be called "small" but small business is a major player in the Canadian economy.

Take, for example, job creation. Over a ten year period, beginning in 1997, over 37 percent of all new private sector jobs were created by small businesses. In fact, almost half the Canadian private sector workforce – 48 percent - is employed by small businesses. If we dig a little further, over two thirds of the employment of five major industries are in small business: non-institutional health care, construction, accommodation and food, forestry, and general services.

Although economic figures vary from source to source, it is estimated that small business in Canada generates from one third to half the Gross Domestic Product (GDP) of the country. From a human standpoint, small business accounts for more than 5.5 million jobs from coast to coast. Taking a closer look at the human aspect of the figures, 95 percent of all Canadian service-producing enterprises are considered to be small businesses.

It seems that many Canadians prefer to keep their businesses small. Statistics Canada reports that 75 percent of all businesses employ fewer than 5 employees. Furthermore, the Canadian desire to keep their businesses relatively small far exceeds their American counterparts. Canadian business owners continue to work at more advanced ages in order to maintain operating the business that they built. More than a quarter of self-employed Canadians are over the age of 55. According to studies, older Canadians enjoy the freedom of lifestyle that comes with being self-employed and prefer to work longer in years in order to maintain that freedom.
 
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Half the Canadian Labour Force Employed by Small Business

Thinking of opening your own small business? Many Canadians do. Nearly half the Canadian labour force is employed by small business. The question, though, is what the best business choice is. With a veritable plethora of options, choosing the right business is difficult. Also, the shaky economy gives cause for caution. Consumer spending has been reduced to must-haves. This, though, still leaves many business opportunities. Recent studies have listed some of the best business options for 2009.

Repair businesses still have a place in the economy as people prefer to fix something rather than buy new. Clothing, appliances, and automobiles are but a few of the repair businesses that continue to thrive.

Fast food is a major part of the national diet and is most likely to remain a lucrative business for years to come. Believe it or not, chocolate is also big business, despite the difficult times. Chocolate calls to people like no other confection. Find the right niche in the gourmet or specialized chocolate industry and you're on your way.

The ever-growing demand for senior care provides tremendous opportunities. Businesses range from opening a care facility to providing home services. A related industry that is growing is medical supplies, both for personal and commercial use.

Times are tough but dirt is dirt. Businesses still need to be cleaned and the demand for quality commercial cleaning services is high.

Sports are still important, despite the recession. Sales figures show that sales of sports equipment remain strong and Canadians are willing to shell out good money for sports equipment, even if they have to work a little harder to earn it.

Dollars are scarce. Therefore, discount stores provide a strong retail option for consumers. On the other side of the coin, there are those who have defaulted on payments. Collection agencies are opening across the country to help collect debts.

Finally, perhaps motivational speaking is for you. These speakers appear daily, and are quite popular. More than anything, they offer hope to audiences and hope, these days, is in great demand.
 
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Statistics Canada: 56% of Canadian Small Businesses are in Quebec & Ontario

In July 2008, Statistics Canada released facts and figures about the Canadian business community. The figures released indicated that, as of the end of 2007, Canada had more than 2.3 million businesses. (This figure reflects a decline of 100,000 businesses over the course of the year). This number included small businesses that met at least one of three minimum criteria. To qualify as an official small business, the establishment must have at least one paid employee (with regular payroll deductions). The business must have annual revenues of at least $30,000. Finally, the business must be incorporated and have filed a federal tax return at least once in the previous three years.

In regards to self employed Canadians, the number rose at an annualized rate of 1.5 percent between 2000 and 2007.

More than half of all Canadian businesses, some 56 percent, are located in Quebec and Ontario. Roughly a third of the businesses – 36 percent - are located in the western provinces and a mere 7 percent are located on the Atlantic side of the country. Less than 1 percent of Canada's businesses are situated in the Northwest Territories, the Yukon, and Nunavut.

However, when examining the business to population ratio, the numbers swing dramatically. The national average is 70.7 businesses per 1000 population. Ontario and Quebec fall below the national average while the Yukon has the highest ratio at 91.4 establishments per 1000.

Statistics revealed that entrepreneurs were more likely to reside in rural areas, rather than urban centres. The ratio of small businesses relative to population was 50% higher in rural regions of the country.

Finally, the survey concluded that 60 percent of small businesses are situated in areas that have large local populations, affording a strong employee base and good market opportunities.
 
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®