Getting Acquainted With the Habits of Successful Entrepreneurs

Psychologists have proven, through continuous research, that behaviour can be learned through observation and mirroring. They also purport that it takes 21 days of consistency for an individual to make or break a habit. Why is this important to entrepreneurship? Well, your success as an entrepreneur can lie heavily on the monitoring, observing, and putting into action some of the habits, techniques and practices that are common among entrepreneurs and small business owners who have propelled their careers beyond the confines of “a single start up”. Many entrepreneurs credit their success to modeled behaviour and plans. Consequently, we have compiled a list of some of the habits of successful entrepreneurs to help steer you in the right direction and give you a head start on your return on investment.

Watch the company you keep.

If you want to attain entrepreneurial success, you should find yourself in the company of those who have gone before you and have excelled. You can learn a lot from people who are smarter than you. Don’t let their knowledge dissuade or intimidate you. They, too, once had a startup (in many cases, of humble beginnings). Once you’ve selected the individuals you want in your circle, refrain from suffocating yourself with business and business-related tasks and conversation. 

To elaborate, refrain from meeting these  “role models” in networking and business settings. Instead, spend time with them at sporting events, barbeques, or even light coffee. If you surround yourself with successful business owners beyond the context of business, you create the opportunity to learn how they live their lives on a day-to-day basis. Conclusively, if you intend on starting an accounting firm, make sure accountants make up a percentage of your “friends group”. 

Be intentional about your day-to-day routine.

Successful entrepreneurs rarely complain about lacking enough hours in the day. They recognize that everyone is allotted the same time and it is the use of that time that is transformative. If you are a morning person, wake up early to capitalize on your hours of productivity. That doesn’t mean waking up at 7 a.m. It means really taking advantage of the time you complete your best work. That may translate into a 4:00 a.m. call time. If you want to maximize your daily productivity potential, you must take your body’s cues seriously. Recognize that work is just as important as rest and when there’s an imbalance of these two things, you and your business are bound to suffer. Further, incorporate time for exercise, personal time, and quality time with family and friends. Once you’ve settled on your day-to-day routine, be consistent.

Make use of the short-list.

When you own a business, your to-do list is often eternal. The list itself might discourage you from completing any work at all. In other instances, it can be so demanding that you seldom complete tasks in a reasonable manner.  Successful entrepreneurs report condensing tasks to two to three priority items each day. As a result, in the likely event that you do not get through your entire list, your most important tasks are completed daily. This technique keeps you accountable, increases task completion, and provides an overall picture for your efficiency. Additionally, short-lists function as an evaluation tool on how to run and grow your business.

Aim high.

Finally, one of the most common emotional traits that persist among entrepreneurs is doubt. Will this work? What if I fail? Is this the right way? Will they buy it? Should I do this? The second-guessing disease is correlated with goal setting. The more you second-guess yourself, the smaller the goals. Successful entrepreneurs aim high, no matter how unsure they are. Why? Because starting a business is a risk and that’s where the magic happens in many instances. Will the outcome always be favourable? Probably not, but at least you can edit and go back to the drawing board when something does not work out.

It is better to aim high and land somewhere at the top than to aim low and hit the mark.

The “Money Problem”

There aren’t many scenarios in which people are repulsed by money…except of course, in the world of business. As a new business owner, conversations about money can be intimidating, uncomfortable and condescending. In a discourse where the exchange of service for currency is inevitable, it’s hard to conceptualize such a fear, but most business owners are able to recount instances where having to pick up the phone and discuss payment was a nerve-wracking as pulling teeth.  

There are three primary factors that are attributable to the money problem:

·         Value - Entrepreneurs struggle to accurately assert a price that is complimentary to the value of the service they offer. In some instances business owners quote clients/customers fees that are much lower than the product value because they fear that the consumer will not recognize the worth; the opposite is also true.  Pricing comes with a warranted level of sensitivity because quite often it dictates how well a business will perform in the respective market.  Consequently, talking about it can result in gaining clients or losing clients and some entrepreneurs are not willing to take that risk.

·         Cultural taboo - Cultures discourage discussions about money. Unfortunately, some entrepreneurs allow that inter-generational value to seep into the discourse of business. Where it is unacceptable to talk about money in the familiar institution, it is equally disrespectful in a financial one.  The symptoms of this cultural taboo are evident in scenarios where business owners are complacent in obtaining late fees, outstanding balances, and unpaid debts. Instead, they carry on quietly and accept the loss, notwithstanding instances where the obtainable amount is not of “significant” value.

·         Social Psychology, “A need to be right, and a need to be liked” - This explanation is quite simple: business owners and people in general, want to be liked and want to be right. When a conversation of money begins to occur, the rigidity of these two qualities is threatened. Consequently, a client may refuse business on such premise.

Talking about money can be uncomfortable, but it is necessary. The following strategies have been effective in relieving conversational tension on this hot topic.

·         Market Comparisons - Compare your prices to your competitors’ prices. Although this may require a little bit of research, the effort is worth the outcome. Pinpoint noticeable financial trends and assess your business on a similar spectrum. If there are businesses that price their services above average fees, evaluate their company to see why. Some businesses may offer additional services, have more qualified professionals, or may have simply capitalized on effective branding.  When you refer to your prices, quoting some of the prices of your competitors will reassure your client that they are not being lowballed. If your business is above average, make the same comparisons, but emphasize what you are offering that warrants a departure from the status quo.

·         Managing Your Motive - Why are you talking about money? How important is the conversation you’re about to engage in? These two questions are fundamental in shaping your thinking about money in business. If both responses yield a matter of urgency and your business will suffer if the matter is not addressed, it is imperative to have the conversation. On the other hand, if your sole motive is to get more money without providing a service that matches same, you’re better off not mentioning it.

·         Formal Non-verbal Communication - Talking on the phone or over a meal in a meeting may work for some business professionals, but it is not ideal for everyone.  Send an email outlining the details of pricing and be clear and direct. Not only does this alleviate some of the burden, but it also functions as binding documentation of exchange between you and the client. Further, emails accommodate, what are otherwise, high-intensity negotiations.

      

      In closing, the infamous expression, “money talks” is misleading, because money cannot talk until someone else does. And the reality is: if you cannot get rid of the money problem, it may result in a “non-existing business” problem. 

Advantages of Co-working Space for Startups

Where should you develop your startup company? Should it be in a traditional office? In a loft or garage? Or at home? The choices are numerous.

We all require the social interactions and energy that an office can bring us, however many start-ups simply don't have the budget to rent out office space. But there is another option.

With an eye on their wallets, many startups are turning to co-working spaces to develop their companies.  These offices allow freelance contractors, micro-businesses and startups to share an office, with fully functioning conference rooms, photocopiers, and most importantly access to other entrepreneurs and peers.

For contractors and startups, co-working can provide a great opportunity to work with peers, develop a support network, have office space to show off during sales meetings, and all without the cost of a more expensive lease.

Here are some advantages to a co-working space for your startup:

1. Saving your money.

It can be costly to rent an office for a new startup – especially if you’re bootstrapping. You not only have to account for the rent but all the utilities and extras that you will need as well.  This can take a large bite out of your company’s budget. 

 Co-working office spaces reduce your need to sign an expensive lease or buy office equipment, such as photocopiers and fax machines, as they are shared at a fraction of the price.  Rent is cheaper too, as you will be sharing the cost between all of your co-workers.

 2. Networking, collaborating, and making friends.

The most praised benefit of a co-working space is the ability to network and build strong relationships with the people you work alongside. You will learn about your co-workers’ background and skills, sharing business experiences and even new ideas. 

Working with other entrepreneurs and freelancers will put you in proximity with individuals who could help your business. You could meet new clients, prospective investors, or you could even meet your next partner.  

3. Creative collaboration and problem solving.

You will be working side-by-side with a broad group of entrepreneurs in the office. If you ever have a challenging problem that you can’t solve, you can easily have a conversation with someone who may have faced the same issue.

You can discuss your ideas with others who have different skillsets and possibly can provide you with an alternative view. The combination of different experiences, approaches and personalities often provide new ideas and solutions that you simply couldn't have come up with on your own.   

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

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

Stay tuned for the videos coming soon!

What is the best business advice you’ve received?

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

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

Here are some good ones to take to heart:


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

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

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

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

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


Dean Ekman, PMP - Deputy Director, Division at CTSC

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

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

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

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


Adam Drake, CFA - Owner, Highland Investment Advisors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Reasons for creating an advisory board for your business

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

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

• independent perspectives,

• experience,

• special skills,

• and network of connections to your company.

Is creating an advisory board right for me?

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

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

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

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

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

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

Researching your business opportunity

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

1. Do your market research.

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

2. What is your business revenue model?

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

3. Know your numbers

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

4. Seek professional advice

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

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

Why Small Businesses are Important for the Canadian Economy

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


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


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


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


• Non-institutional health care (89 percent);

• construction (76 percent);

• other varied services (73 percent);

• food and accommodations (67 percent),

• and forestry (67 percent).


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


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


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


• better labor laws,

• reduced taxes to help businesses grow,

• a reduction of red tape,

• and better spending on services for small businesses


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


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

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

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


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


1) Follow your heart


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


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


2) Make a positive impact or change the world


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


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


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


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


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


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

How the Self-Employed Can Save on Taxes

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

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

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

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

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

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More Capital for Women Entrepreneurs in Canada!

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

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

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

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

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

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The Right Staff

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

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

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

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

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

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

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$170 Billion Charged to Visa and MasterCard

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

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

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

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

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


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Survey: National Salary Increases Less Than 3%

Ever the employee's question, the issue has achieved far more relevance in the current economic climate. No longer is the annual salary increase a matter of form. In fact, many employees were relieved at year's end to learn that they would still be employed for the coming year, let alone expect a raise from the boss.

The truth is that, owing to a negligible inflation rate, even the slightest salary increase will, in reality, contribute to a gain in living standards. Nonetheless, this is not to say that salaries in Canada will not rise this year. The question on many lips is how much?

According to surveys conducted recently across Canada, encompassing a broad spectrum of more than 700,000 employers, Canadians should not expect large increases this year. Estimates average between 2.3 to 2.8 per cent nationally. Although the national average was 2.2 per cent in 2009, caution in the business community is keeping the numbers down, at least for the foreseeable future.

Employees in Saskatchewan are projected to earn 4.1 per cent more this year, due to the province's energy boom. Ontario and British Columbia bring down the national average, as estimates are increases of 2.6 and 2.7 per cent respectively, due to low performance in manufacturing and forestry.

In actuality, many companies across the country have projected zero salary growth for 2010. While this is not set in stone, many employers are waiting to see how the economy reacts over the next few months before making new financial commitments.

Another factor to be considered is the number of employees pulling double workloads to compensate for reduced workforces. Easing these conditions could also be considered to be a benefit.

In this recession, every little bit will help.

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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.
 

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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!

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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.

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Show Me the Startup Money

You have the idea and the knowledge. The desire, drive and ability are there. You're ready to dive into that new business but, alas, you lack the money to start. Where does an entrepreneur secure the necessary start-up capital for a new venture?
 

By far, the easiest source of funds is from family and friends. Roughly 13% of all Canadian entrepreneurs use this route. Keep in mind, though, that family and funds don't always mesh well. It may be a better idea to have a relative or friend co-sign or guarantee a loan, rather than lend their own money.
 

Certainly, the lender with the most available cash is the bank. Unfortunately, though, banks often pose the most obstacles to borrowers. One solution to satisfying the bank's criteria is to apply for Small Business Financing via your bank. This federal program is backed by Industry Canada and guarantees 85% of the value of bank loans.
 

Angel capital may work for you. "Angels" are investors, generally former business executives or entrepreneurs. In addition to their money, they also can offer expertise and contacts. While they are not seeking control of your company, they do expect a healthy return and may wish to take an active role until their investment is returned.
 

It is well worth investing some time and energy to see if any government programs are applicable to your needs. Generally, these programs offer favourable terms and have flexible payment options.
 

Some 22% of Canadians have used credit cards to fund their start-ups. By checking interest rates, some have found these loans to be to their advantage.  Also, as new credit lines with lower rates become available, older loans can be repaid and interest saved.
 

Consider all your options and best of luck in your new business.


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'Tis the Season to be Eco-Green

Some say it's fashionable. Others say that it's political fodder. However, most Canadians have begun to see that our climate is truly changing. As such, the way we live must change as well. And, certainly, the business community must become far more environmentally sustainable.
 

Business analysts have discovered that "going green" is not just a socially acceptable act. It actually makes good business sense and, ultimately, has a positive impact on the bottom line.
 

For example, eco-friendly companies are those that have managed to reduce resource usage and waste volumes. In turn, this reduces expenses, both in personnel and equipment. A recent research study concluded that integration of sustainability practices can increase profits for small and medium sized companies by up to 66% over five years.
 

Customer relations are the backbone of business. The public is far more likely to support industry that is doing "the right thing" in regards to the environment. Recent studies have shown that two-thirds of consumers are likely to shift their loyalty to environmentally friendly companies.
 

Companies can also realize savings from reduced personnel costs. Hiring and attrition cost money. A recent survey of students revealed that 68% felt that social and environmental reputation of an employer were more important than salary. Most would prefer to sign on for the long term with an eco-friendly employer.
 

Recycling is good for the environment as well as for the ledgers. Companies can save tremendous amounts of money by recycling equipment and materials. Moreover, by encouraging employees to take part in the effort, companies build loyalty and increase productivity.
 

Don't view going green as a threat. View it positively and reap the benefits of a healthier environment and a rewarding business.

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