Focus On One Thing

It sounds like instructions that you might give to a photography student or a line that you might hear during an optometrist's visit. But, it is also the credo of many business entrepreneurs. The secret of success of great companies is to do one thing very well. It is far too easy to go off on several tangents and try to "be number one" in a few ways. But, the business leaders who have made their way to the top will tell the same story. Concentrate your energies on one area and focus your attention in that one direction.
 

For example, sales are crucial to business. But, are great salespeople born or made? Some do have an inherent talent to sell. However, some companies have put their energies into strong sales training. This is a proven investment as salespeople no longer shoot from the hip. Rather, they become part of the sales force that drives the company forward. You focus on building the sales team, complete with team spirit.
 

Apropos team spirit, that may be the area requiring your attention. Employee retention is crucial in the business world. A constant turnover of staff will definitely have a negative impact. A key strategy employed by many experienced employers is to find ways to create an environment that makes employees desire to come to work. The answer is not always money. Making employees an active part of the company is valued highly. Employees' opinions do count. Chances are very good that your staff has terrific ideas about improving the company and its sales. Provide incentives but allow employees to be part of that incentive process. The sense of belonging creates the driving spirit so that everyone is part of the big picture.
 

Think of business success like an arrow. It propels forward only when the point is out front.

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Credit Card Code of Conduct

If you own a retail business, you will understand exactly what the issue at hand is all about. How much of your hard-earned money goes to the credit card companies through fees and charges that seem to keep rising?
 

Canadian Finance Minister Jim Flaherty recently announced the implementation of a voluntary code of conduct for the credit card industry. The new Code of Conduct has come in response to increasing complaints by small businesses about the excessive fees that they are being forced to pay.
 

The voluntary Code of Conduct, which may be revised over the next couple of months according to Mr. Flaherty, lists measures to give merchants freedom of choice in regards to which payment vehicle to use. The Code requires posting of online information regarding the interchange fees charged to retailers. It will also require the credit card companies to give retailers 90 days notice of any fee changes.
 

Responding to the announcement of this new Code, retailers view this as a positive development but would also like Ottawa to create an oversight body to ensure adherence. Creation of a parliamentary committee was one possible suggestion.
 

Mr. Flaherty pointed out that this Code of Conduct is voluntary and he hopes that the credit card companies will respond positively by voluntarily adopting the measures set out for the industry. The alternative, according to the Finance Minister, is to regulate the industry through legislation. But, as the credit card industry has objected vehemently to regulatory legislation, it is hoped that they will adopt the voluntary measures.
 

As other voluntary codes of conduct have been adopted by other industries, retailers hope that the credit card giants will similarly adopt these new guidelines.

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How Can I Convince My Clients to Stay?

Many an entrepreneur has started off in business hoping to make that first million with this new venture. Some have done well; others have not. Those who have succeeded have learned a very basic secret. Building a large customer base is not as important as building a strong customer base. These are the customers that will stay with you in good times and bad.
 

How does one go about finding these types off customers? The answer is that you can't find them; you have to create them. In other words, you must develop a strong bond and relationship with your customers. It is the human relationship, not the business one, which is the glue that will keep you together.
 

It certainly is not easy. You have to invest a great deal of time and energy to build that relationship. You need learn all that you can about a client. What are his individual needs? Does he have quirks that you will have to adapt to? How can you help his business beyond the product or service that you provide?
 

Listening is crucial. Take time to communicate personally with your clients. Nothing will ever replace the human touch. Spend time researching your client and prepare yourself for meetings with him. Elevate yourself to a point where you know more about him than anybody does.
 

Don't only meet with a client in order to sell. Meet in order to talk. Offer advice and assistance. A client who knows, not perceives, that you are truly interested in him and his business will work together with you to seal that bond.
 

Invest your energies in finding ways to develop a partnership of sorts with your clients. Once a customer perceives that his leaving the relationship is not worth the price, you will have discovered the secrets of client retention.

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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.

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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.

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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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Managing Your Corporate Knowledge

Thanks to your hard work and dedication, your business has grown. Once a small workforce that met for coffee and donuts every morning, the company has now grown into a major concern with scores of employees in several locations. As the boss, you knew each employee and probably taught them what to do. In a pinch, you could fill in for them as well. Today, though, the employees are names on an HR roster. The bigger issue, though, is that you have lost touch with what each employee knows. As the person at the top, it is vital for you to know how much human knowledge and skills are at your disposal.
 

A proper Knowledge Management (KM) system is a vital tool. It helps uncover the knowledge in your organization and reduce or eliminate gaps caused by employee turnover. Furthermore, it helps businesses avoid duplication of work.
 

A recent study of companies with a KM program revealed some startling figures. 63% of the companies had realized an acceleration of innovation. Two thirds of the companies had reduced operating costs. A similar percentage experienced a dramatic increase in teamwork and cooperation as well as an increase in responsiveness and performance speed. The study also calculated that failure to exploit knowledge in an organization effectively results in 6% of a company's annual revenue remaining unrealized.
 

Experts in KM recommend implementing an intranet-based information system in order to make information readily available and accessible within your company. Similarly, exit interviews for departing employees should be carefully conducted so that specific knowledge does not go out the door with the employee.
 

Finally, even though your business has grown, make the time to socialize informally with employees. In order to work as a team, you must know the team members.
 

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Getting the Most Out of Your Employee Team

No, this is not a sports pep rally. However, just as in sports, success is heavily dependant upon teamwork. The higher the performance of the team, the better the chances for productive outcome.
 

     Every employer knows that one of the hardest operating challenges in business is assembling the right people for your team. Hiring unknown individuals is always a partial gamble. Therefore, a combination of instinct and skill is required to hopefully pick correctly.
 

     You've worked hard and sacrificed to realize a dream in building your business. You would like your employees to share that dream. Therefore, an employee for whom this is "just a paycheque" may not be the wisest choice for your management team. You want people who can see beyond the job.
 

     A good team player is willing and able to listen to others, as well as share ideas. There must be common agreement that the team works together under the leadership of one individual whose own goals for the business become the collective goals. Ambition in an employee is positive, provided that the ambition does carry its own agenda.
 

     Look for problem solvers on your team. There is no reason for you to carry all the weight yourself. Also, your team should feel as passioniate as you do. Share the lows and the highs become far more important to achieve.
 

     Individual roles should be clearly defined and each member of your team should know how they relate to the team as a whole. Build a well oiled-machine that functions perfectly when each part is operating in sync.
 

     Don't rely too heavily on references. Quite often, you will hear only what you want or you will be told only what someone wants you to hear. Look for the right qualities, ask the right questions, get the right feeling, and you should be on your way to assembling a top-notch team for your business.
 
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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.

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