The Key to Customer Relations

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

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

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

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

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

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

If You Fail, Try, Try Again!

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

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

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

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

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

Hope on the Horizon for the US and Canada

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

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

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

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

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

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

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

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

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 ®

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.

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

Paying Down Debt vs. Savings

The great Canadian conundrum – live for today or tomorrow? In an era when money is tight and many families have to make tough financial decisions, the question of priorities arises. How much should one save for the future? How should one juggle his current needs with future needs?

Certainly, young couples face this dilemma. By trying to squirrel away retirement money and manage a young household, many couples begin to choke. Experts advise that the best strategy is to erase debts before saving money. Start by paying down credit card bills. The result is a guaranteed after-tax return of 18%. No RRSP will offer that rate of return! Try, as well, to whittle down the mortgage. Once these debts are out of the way, you can re-direct the money into your RRSP.

In addition to the debt-first strategy, the next step, once you're ready to invest, is to prepare yourself for the inevitable. Since you can't predict the future, try to be in control of your options as best as possible.

Plan your investments with some foresight. Rather than look for the best deal today, try and decide what your future needs will be and work backwards. Invest in ways that will best fit your needs. Try to find the best mix of stocks and bonds for you and stick to that mix. Markets shift but your long term consistency should work to your benefit. Also, try and limit your risk. Some is necessary but everything in moderation. Consider a 60-40 mix of stocks and bonds. Once a year, take some money from the more profitable side and bolster the lagging side. This way, you will always buy low and sell high.

Remember the sage advice – be in control of your money; don't let your money control you!

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 ®

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 ®
 

Stimulus Funds in Canada to Become Permanent?

Much has been written these last few months about the effects if the recession, or whatever term one may wish to call the global economic situation since last year. Some countries have weathered the storm better than others. Certainly, Canada, while by no means having fully recovered, is on much stronger financial footing as compared to our neighbours to the south. Experts have attributed many factors to Canada's relative strength. But, putting aside the past, the questions that still remain unanswered pertain to the future.
 

One factor that is contributing to Canadian recovery is the strength of public confidence. As the belief in the stability of the economy grows stronger, the recession and its effects recede that much more. However, what will be if the global economy takes a nosedive once again. Are we prepared for that?
 

The Canadian government has been a major player in managing the recession and orchestrating the country's recovery. A large factor has been the availability of federal funds available through a variety of programs tailored to the various needs of the business community. While these programs were designed as a temporary stopgap to help weather the storm and keep the business sector liquid, government officials are now asking themselves whether it might be wise to make a basis of liquidity permanently available.
 

On one hand, officials see the inherent benefit of providing funds to facilitate the continuous functioning of core markets. On the other hand, researchers for the Bank of Canada are concerned that these "permanently available" funds might induce investors to take on excess risk, secure in the knowledge that there will always be a bail out plan ready.
 

While the debate continues, the government and the central bank have learned that they must maintain sufficient flexibility and readiness to respond to any future liquidity problems.

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

Keeping Your Client Base: How Important is One Customer?

  If it came to a debate, the truth is that both opinions would be on the same side. Those who have succeeded in their business ventures will tell you what newcomers to the business world don't always know – it is far more important to hold on to strong customers rather than just finding new ones.
 

Of course, logic might deem otherwise. Shouldn't I always be on the lookout for new customers? Shouldn't I try to inflate my customer base, making it as large as possible? Let there be no misunderstanding. Customers are very important to a business. After all, no business, no income. But, let's be honest. Is there any guarantee that the new customer that you found yesterday will still be there tomorrow? On the other hand, even in times that are less than the best, the chances are quite good that a long-standing, loyal customer will still be there.
 

Client retention is vital to the longevity of a business. It is not enough to lure customers through pricing that beats the competition. After all, tomorrow the competition may lower his prices and your customer will follow the price trends.
 

Studies have shown that retaining customers will positively impact the bottom line of a business up to 15 times more than landing new customers. That's money in your pocket at a much lower risk.
 

Providing great service is not enough to guarantee customer loyalty. It is imperative to develop an actual relationship. Make the relationship deep enough so that the client will not be tempted to take his business elsewhere. When you develop a level of trust with your client that, ultimately, helps him as well as you, you will manage to build a relationship that will remain strong, even when times are tough.

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

Defying the Economic Downturn

Throughout the last year or so, volumes have been written about the global recession. Every economist has an opinion and every analyst has a theory. Of course, one cannot ignore the politicians who have opinions, theories, and rhetoric as well.
 

     The fact is that most of us have been affected by the recession in one way or another. For some, it may mean that their favourite neighbourhood store closed its doors. For others, the effect may have been more severe, either through unemployment or a reduction of savings.
 

     Whatever one's situation may be, the question is what the best reaction is. That is not to say that there are immediate solutions to all problems. For many, it may take quite a while to bounce back from the recession. But, is it enough to be passive and wait for the economic climate to improve or can one use this period of time to one's advantage?
 

     Some leaders in the business community, despite having suffered financial losses, feel that this period of economic slowdown is an ideal time to promote leadership growth, to gain a tighter focus on business, and to implement new business-model improvements. Use this time to tighten the reins and strengthen one's business in order to emerge stronger and more cohesive when the slump ends.
 

     One way to tighten the reins is to focus on your business and set several clear and simple goals. Do those small things consistently and do them well. By re-establishing your methods through redefined goals, you will foster improvement. And, believe it or not, improvement is contagious. Create a positive future outlook and your employees will get the spirit. The re-energized team will be in place when the economy turns around.

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 ®
 

Canadian Broadband's Poor Rating

In a recently released report commissioned by U.S. regulators, Canada, compared to other leading nations, rates very poorly in areas such as national broadband adoption, network capacity, and prices.

Employing results from a detailed survey conducted by Harvard's Beekman Center for Internet and Society, Canada ranked a disappointing 22nd place overall out of 30 countries. Japan, Sweden and South Korea ranked highest in the survey. The United States placed 13th in the survey.

The survey was commissioned as a basis for the U.S. Federal Communications Commission (FCC) to create a national next-generation broadband plan.

Broadband service is viewed as a key factor to enable economic growth that can benefit a wide range of intrinsic services in areas such as telemedicine and management of transportation and energy systems. It can also greatly reduce infrastructure costs for businesses.

European nations support open-access policies to spur competition among service providers. Open access allows new companies to lease lines from a network owner. This has proven to be a highly effective method of promoting competitive pricing to the consumer market. Currently, both the U.S. and Canada have yet to adopt this policy. Both nations rely upon competition between cable and phone companies to develop better and cheaper services. The Beekman Center study concludes that this method is highly ineffective for the short and long term of the industry.

Canada's CRTC (Canadian Radio-Television and Telecommunications COMMISSION) did implement open access rules in 1997 but, by allowing network owners to charge the highest lease rates on the planet, the CRTC effectively hampered any positive development. With rates as much as 70% higher than some nations, open access did not progress in Canada.

With a rating that has continued to decline over the last decade, Canada must seek to revamp its broadband policy if it wishes to compete with the world.

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

Living Week by Week: Rough Economic Times for Canadians

The results of a new poll released this week by the Canadian Payroll Association revealed some surprising statistics and facts about the average Canadian household. A one week delay in receiving a paycheque would render nearly 60 percent of Canadians unable to pay their regular bills. Moreover, the same majority group has little or no ability to set aside money for retirement funds.

These surprising results have shed new light on the financial condition of many Canadian homes during these rough economic times. Despite common financial advice that people should have an emergency cash reserve for three months of expenses, the majority of households surveyed admitted that they are happy if they can make it to the next paycheque, let alone save for retirement or emergencies.

The younger workforce is in greater distress. 45 percent of workers aged 18 to 34 are feeling the crunch and feel that they are having trouble making ends meet. A delay in being paid would spell disaster. 72 percent of single parents responded in a similar fashion.

Regardless of age, the survey revealed that half of all Canadian workers are unable to save more than five percent of their net income for retirement. Financial planners recommend that ten percent is an advisable amount. However, the recent fluctuations in the stock markets have made saving for retirement far more challenging. Nearly one third of Canadians are trying to save more money but they can't. 42 percent admit that they aren't trying at all to save more.

Despite the variety and wide array of financial products being offered to Canadians by financial institutions nationwide, many Canadians seem pleased if they can pay their bills after payday.

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

How Canada Prepared for the Crunch

Looking back just a little, the current recession took hold in 2007 when the inflated U.S. real estate bubble exploded. The speed with which the downfall snowballed surprised many but did provide enough time for legislators to take early action. The Canadian government, under Prime Minister Stephen Harper, was one of the first to prepare for the coming financial challenges.

The first step was introducing legislation in 2007 for permanent tax reductions for Canadian homes and businesses. As the recession hit the U.S. in early 2008, these new tax cuts took effect, helping sustain consumer spending and pumping billions of dollars into the Canadian economy. The lower GST is a blessing for individuals who have more of their hard earned dollars to spend. Canadian businesses now benefit from the lowest corporate tax rate among G7 industrialized countries, providing cash for continued corporate growth and creating new jobs.

During the country's strong economic years in 2005-2006, the government wisely reduced the national debt by $37 billion. By entering this recession period with a low debt burden, the government has had flexibility to run a short term deficit and provide funds for job creating investments and other economic stimulus programs.

Another preventive measure undertaken by the Harper government was regulating the mortgage market. The maximum term was reduced to 35 years and a minimum 5 percent down payment is required for government-backed mortgages.

Finally, responding to a cautious banking sector, the government has enacted programs to provide access to financing for consumers, households, and businesses. The government has not replaced private lending but, rather, is working in a cooperative effort with financial institutions to encourage lending and provide a network of guarantees.
 
Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Canadian Taxpayers Association: Alberta Should Cut Spending

As Alberta's deficit continues to grow, political pundits and economists have much to say about the cause and effect of the province's financial woes.

According to a recognized expert at the University of Alberta, Alberta is the highest-spending province in Canada. A major blunder has been the financing of all this spending in an irresponsible fashion. The primary funding source has been income from the province's non-renewable natural resources. Non-renewable indicates that the income will stop flowing when the resources are no longer present.

A recent statement issued by the Canadian Taxpayers Association calls upon the province to cut its spending immediately. While the province intends to finance its deficit from emergency savings funds, this will literally wipe out these funds, leaving nothing out aside for a "rainy day."

Alberta Premier Ed Stelmach has stated unequivocally that he has no intention of raising taxes, nor does he intend to cut jobs from the province's payrolls. Moreover, he has announced that the province intends to move forward with $20 billion in building projects planned for the next five years. The province's population has grown by more than one million residents in the last two decades. More schools and hospitals are needed as well as assisted living facilities for a growing elderly population.

While numerous companies in the private sector, facing financial hardships, have worked with their employees to take a rollback in wages rather than face job loss, the province's employee unions have yet to be approached officially to discuss wage concessions. Considerable savings to provincial spending could be realized by coming to agreements with the province's 21,000 employees.

The provincial leadership has been rather reticent about necessary cost-cutting measures. Experts feel that residents may not take kindly to having surprises revealed at the last minute. Recovery may take several years but few feel that it will happen without specific government intervention.

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

The Price of Ending the Recession

Government officials and economic analysts are in common agreement that Canada is headed out of the recession. While there are disagreements as to the exact timeframe, there is a fact that is common to all parties – the price tag.

For a country that proudly presented a balanced budget for twelve consecutive years, Canada had to revise its budget projections for the thirteenth year and for several years to come. Canadian Finance Minister Jim Flaherty recently announced his department's projection of a $50.2 billion deficit for the current fiscal year. He was quick to add, though, that this figure is "consistent" with meeting the deficit target. The government projects that it will present deficit budgets for the next four years, adding nearly $100 billion to the national debt. The current deficit is due primarily to several factors: falling tax revenues, both personal and corporate; a massive 47% increase in unemployment insurance premium payouts; and huge bailouts to the auto industry as well as other business subsidies.

While Mr. Flaherty is holding to his optimistic prediction of returning to a balanced budget in 2013-14, Prime Minister Stephen Harper, and several leading economists are somewhat more realistic in their forecasts. However, both the Prime Minister and the Finance Minister are in agreement that tax increases and major spending cuts are not being considered in order to expedite a balanced budget.

Some analysts have suggested that drastic changes to the budget are not advisable. Rather, once the stimulus programs spending has been depleted, the government should adopt a program to control spending growth. This will enable the government to eliminate the deficit over a period of several years.

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

Is a Second Round of the Recession on the Horizon?

Speculation has been growing in some economic circles that a "double-dip" recession – a second wave – is a distinct possibility. Some investors and economists fear that the government stimulus programs in various countries have managed to stabilize economies but have failed to jump start any long term growth.

Countries like Japan, Germany, and France have recently posted positive growth figures for the second quarter. However, world stock markets have remained fairly volatile.

The growing fear is that growth generated by the trillion of government stimulus dollars is only temporary and will cease as soon as the governments cease funding the various programs, most probably within the coming year. Thus, the term "double-dip" has come into use.

In order to truly declare an end to the recession, countries should be experiencing substantial sustained growth in consecutive quarters. This has failed to materialize yet in any significant fashion. Certainly, there is reason to be optimistic but consumers have yet to display a return to a strong buying mentality. Many are still in a savings mode, particularly in the United States. Even though interest rates are at an historic low in the U.S., many consumers fear taking on any more debt. Canadians are faring better than their neighbours in the U.S., but they, too, are still leery about the economy, as unemployment is still rampant in the nation, especially in the manufacturing sectors.

Economists hope that governments will not make the mistake of ending the stimulus packages too early. A good beginning can lead to a stable financial future if the elements of recovery are managed properly and timely.

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

How to Reduce Your Business Costs

Desperate times call for desperate measures.

This old adage has become the modern modus operandi for many companies. As many companies have had their operating budgets reduced, the time has come to re-think how to operate a business. Specifically, is it possible to continue serving one's customer base on a reduced budget?

The answer is a resounding yes. The key to successful continuation of one's business operations requires re-featuring, not actual cost cutting. Understanding what the customer really wants and what can be done without is the best way to re-feature. This will allow the business owner to provide the goods or service while lowering costs at the same time.

A careful evaluation of one's business is crucial. Take the time to carefully evaluate which areas of the business should be highlighted, owing to their profitability, and which areas should be downplayed, as they truly don't matter as much to the customer. By reducing or removing non-essential services, improved pricing can be offered to the customer, thus strengthening customer loyalty.

It may be time to evaluate your raw materials. Is it possible to change to less expensive raw materials without compromising quality? Similarly, while few people want to dismiss staff, is your staff being utilized to the optimum? Some services can easily be offered to the public via internet services, thus freeing your human staff for tasks that computers cannot perform.

Rarely is cost cutting an enjoyable task. However, by figuring out the best and most innovative ways to improve your productivity and profitability of existing services, products, and processes, cost cutting is an inevitable positive by-product.

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

Negative Reviews about your Business are Positive

It may sound illogical and absurd but analysts and businesses alike have found that inviting negative criticism can be used to your advantage.

While negative criticism of a service or product is hardly a novel concept, providing a forum for, and encouraging, this type of feedback has only recently come into vogue. Online businesses, which have highly accessible conduits of information, have learned that negative reviews by customers need not be damaging. In most instances, the customer has a legitimate concern. Listening and responding to the customer may be in the best interest of the business. For example, a customer who has used a product may be able to suggest a subtle improvement that will seriously enhance the product. If several customers make the same or similar suggestion, the prudent business owner may be wise to employ this suggestion. Similarly, the average consumer is aware that opinions are as different as people. However, being able to express that opinion, and knowing that it is being listened to, is extremely important.

While many websites print customer reviews, the savvy buyer knows that only glowing reviews of a product or service are hardly unlikely. Studies have shown that less than 25 per cent of only shoppers will not consider shopping on a site that contains some negative reviews. On the other hand, similar studies have shown that customers are most likely to shift their loyalty to sites that have responded to complaints or criticism, offering either compensation or replacement. The finest product has no value without purchasing customers. Listening and responding to customers is an ideal way to secure their loyalty. Another study recently concluded that customers want to know if a product has any weaknesses. It helps set realistic expectations of a product. In an imperfect world, we all learn to cope with reality. Online shopping is a major part of our world and business owners should not forget that real people are shopping in their virtual stores.

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