Can You Hire Unpaid Interns to Help Your Startup?

It certainly takes a lot of staff to get a business up and running. Along with the full salaried employees, many business owners have turned towards the idea of bringing on unpaid interns as a way of supplementing the staff needs. The Ministry of Labour has very specific guidelines when it comes to bringing these types of workers into your business. The first thing you have to determine is if your intern fits the official definition of an intern.

As classified by the ESA (Employment Standards Act) an intern is “an individual who performs work under a program approved by a college of applied arts and technology or a university.”

A person who falls under that classification is excluded from being designated as an employee and therefore doesn’t have to conform to the ESA requirements for that type of worker. However, there are some possible complications. The ESA defines an employee as one or more of the following:

a)      a person…who performs work for an employer for wages,

b)      a person who supplies services to an employer for wages,

c)      a person who receives training from a person who is an employer, as set out in subsection (2) For the purposes of clause (c) of the definition of “employee” in subsection (1), an individual receiving training from a person who is an employer is an employee of that person if the skill in which the individual is being trained is a skill used by the person’s employees, unless all of the following conditions are met:

a.       The training is similar to that which is given in a vocational school.

b.      The training is for the benefit of the individual.

c.       The person providing the training derives little, if any, benefit from the activity of the individual while he or she is being trained.

d.      The individual does not displace employees of the person providing the training.

e.       The individual is not accorded a right to become an employee of the person providing the training.

f.       The individual is advised that he or she will receive no remuneration for the time that he or she spends in training.”

Obviously, that is a lot to sort through. The best course of action is to contact the Ministry of Labour before hiring an intern to make sure you’ll be in compliance. You might also look into programs where the government will provide funds to your business if you hire a post-secondary student for a 12 week internship.

Strictly speaking, you’ll need to pay for 25% of this person’s salary but the government will step in and fund the rest. This applies only to companies with fewer than 500 employees who have been in business for a year or longer and it is only for improving a company’s e-commerce website.

It could be the perfect way to get a fresh approach for your business!

Why Should You Incorporate Your Company?

There are many reasons for incorporating but the most important to consider are the benefits of incorporating and the implications that it may have for your business. A quick examination of all the benefits to be derived from incorporating will reveal that the best time is when you are actually taking your startup business from inception to reality. Consider all of these corporate advantages:

1.      Limited Liability

Incorporating your business is really about protecting your personal assets. Anyone who starts up a business will find it taking up a major portion of their time but that doesn’t mean you have to assume a total risk with everything you own. By incorporating your business you are drawing a clear line between your personal asset and the assets of the company. That way if anything should go wrong with the company, you’ll still have your personal property. It’s important to keep those two aspects of your life separate.

2.      Attracting Investors

When you incorporate your business you’re also telling potential investors that you’re serious about your company’s future. That is going to make getting money from investors a lot easier. Any investor will be taking a risk by giving you capital. You can make them feel more confident with a professional approach to your business plan through incorporation.

3.      Tax Issues

Just as incorporating your business will protect your personal assets it can also help improve your tax filing status. With a corporation, you have the ability to defer paying taxes to a time during the fiscal year which will be more beneficial. This also applies when you accept an income. The goal should be to work with your accountant to find a proactive way to reduce your tax burden which can ultimately allow you to reinvest in the business. There are also a wide range of small business tax deductions which can help you make improvements but they would only apply to a business that has been incorporated.

4.      Better Client Prospects

If an investor feels better investing in a corporation then a potential client will also share those feelings of confidence in your business. Incorporating your business projects a level of stability to customers. They know they’re not dealing with some “fly-by-night” organization but someone who is in for the long haul of providing service.

5.      Corporate Legacy

For all practical purposes, a corporation is a legal entity that can far outlive the lives of its founders. When you can move your company into the realm of Fortune 500 type of businesses then the hope is that they’ll be around long after the original board has gone onto greener pastures. A corporation is about longevity which is exactly what you should be focused on for your new business.

What's Your Exit Strategy? How to Plan for a Graceful Exit From Your Business

Have you just started up a new business? Congratulations! Now you should start planning your exit strategy.  That might seem like you’re rushing things a bit but operating a successful business means you’re looking into the future for the day when you can either retire or sell off that business.

What’s your exit strategy? If you don’t have one you might think about these helpful tips to keep in mind for a graceful exit from your business.

Pick the Right Time

As you set out in your business, you should have goals. Your business benchmarks could be a certain amount of profit you get to put into your pocket or building some type of legacy that you want to pass onto your children. What’s important is that you sell your business at the right time not when you are forced to sell because of an illness. In other words, selling a business should be a major part of your business planning. It should be included as a component of your retirement plans and you don’t want to wait too long to enjoy your retirement.

Decide Exactly What You’re Selling

There are many moving parts to a business. These would be all the various assets that you own and control. Do you want to sell your business outright? This would mean transferring everything to a new owner.

If you can’t find an owner who wants to take over the entire business, you might be able to sell of the various pieces such as equipment, mailing lists or even a storefront. If you’ve built up a valuable brand or product that could be sold to a larger company.

Figure Out Your Business Value

This might seem like a no brainer but it could also be a bit of a reality check for you. You might think after all the hard work you’ve poured into your business that its value is enormously high. In truth, it might be valued at far less than you anticipated. This is why you can’t depend solely on selling your business when it comes to planning ahead for your financial security.

The moment you open your doors you should start saving in a retirement account. A professional valuator will be a big assistance in this matter.

Avoid Surprises

Getting your business ready to sell means you’ll be opening yourself up for inspection. As part of your normal business practices you should have been maintaining flawless accounting books so that won’t be a problem, right?

But if you have other assets like an office or equipment you’ll want to make sure they are all up to the code and functioning properly before asking someone to buy them.

Get Professional Help

You shouldn’t enter into the process of selling a business on your own, you should create a team to help you. Look for the assistance of corporate lawyers, accountant and bankers. In some cases, real estate agents can also be helpful. This is especially true if real estate is involved.

As important is it is to plan a startup, it is equally important to plan an exit.

Are you Ready to Quit Your Job and Start a Company?

So, you’ve got a great idea for a business that you’re eager to pull the trigger on. One potential obstacle: you’re working in a job now and unless you quit you can’t get your start-up going. What do you need to do before you quit your job and start a company? Think about these issues before taking the plunge:

1.      Money Coming in Versus Money Going Out

Only you know what you need to survive on in terms of income. Many new business owners often forgo a salary until their new venture is on stable footing. Can you survive without a steady paycheck? Don’t imagine what you’ll be making; be realistic about what you’re making now and what you can anticipate making two weeks after you’ve quit. The harsh reality is you’re probably going to take a salary hit in terms of reduced weekly take home pay. Can you survive with that?

2.      Business Plan Projections

What does your business plan say about generating income? If you don’t have a business plan, then you’re really not ready to quit your job! A properly prepared business plan will become your road map for success. If you have used realistic projections then you should be able to gauge when revenue will start rolling in. More importantly you should have a contingency plan ready to activate if those projections don’t hold up.

3.      Emergency Capital

Your contingency plan should include a kind of “rainy day fund.” This should be additional operating expenses you might require to keep your business running should you experience a downturn in the first couple of weeks or months. Quick example: You’re starting a business selling beach umbrellas but on opening day it begins to rain for two weeks straight. Will you have the money to pay your bills while you wait for the sun to shine?

4.      Family Support

You can never underestimate the need for family support when you open up a new business. You’re going to be asking for a lot of sacrifices from your family as you devote long hours to make sure your business is running properly. If they’re not as committed as you are to this start up then you’re going to have added stress which isn’t going to do anybody any good. This kind of support is critical when you are making the transition from one job to another. They last thing you want to ever say is, “Surprise: I quit my job!” Major decisions like that should be made in partnership with your family.

Measuring Your Social Media Campaign Success

Determining the success of a social media campaign comes down to an issue of metrics. The following are the top three metrics you should be looking at when gauging the success of your social media strategy.

Active participation: A quick snapshot of any social media campaign is to look at the number of users who are accessing your social media profiles. With Facebook, it would be the number of “likes.” With Twitter, it would be the number of retweets. However, these numbers aren’t the only ones you should be studying. Go deeper. The key to social media is engagement. For instance, Facebook provides its page administrators with a detailed analysis of  the percentage of comments generated and views. The other networks have metrics such as page views and mentions that can also indicate the kind of volume your company is attracting.  

Your bounce rate. Are your visitors arriving at your site from your social media profiles but leaving immediately? Take a look at the time spent on your website from your different traffic sources. If you find that visitors are spending less than a minute on your website, then maybe your landing page needs better copy. Or maybe you’re attracting the wrong audience.

Conversions: You want social media campaigns to convert, either into subscriptions, sales or any other items that you’re offering as part of your sales funnel.  If your sales increase after launching a successful social media campaign, then it worked. However, those numbers can also be used to determine the return on investment when it comes to expanding your reach. For instance, if you have a 5% increase in sales with a 10% increase in site traffic then it follows the more traffic, the more sales.

Not all of the metrics are simple to track and may require some advanced tools. It’s very important to take the time to have the right measurement and analytical tools in place before you start a social media campaign. Without the right tools, you won’t be able to determine if your campaigns were successful or an abysmal failure.

How do you measure your business' social media success?

Is Crowdfunding the Best Strategy for Your Startup?

In the last few months, there has been a new trend in startup investing that has gotten the attention of the VC world.  Taken from the idea of crowdsourcing - crowdfunding allows the smaller investor to get into investing into a potential startup by mitigating the risk with a group of people.

As Blake Coler-Dark mentions, crowdfunding is.. “The ability of many individuals to fund a specific project or individual.”

This is what makes crowdfunding so appealing to many people - it gives people the opportunity to fund a project that they really believe in, with minimal risk. This engages a much wider group of people, who want to be in the forefront of great ideas or projects but may only have $20 to contribute. Crowdfunding lets everyone get in on the fun of investing in a new project.

One of the more popular crowdfunding sites is Kickstarter. Kickstarter’s funding process is simple. You’ll be given an opportunity to pitch your business to the Kickstarter community and if the crowd likes what they see, they’ll start providing the funds.

Don’t get this wrong. This isn’t free money; these are considered investors according tax law who expect to be paid back. But it’s a good way to get capital fast, especially for startups who have not had success in the traditional financing route with bankers.

How is this a good strategy for your startup? Consider these potential benefits of crowdfunding:

You’ll Get Instant Validation of Your Business Idea

Setting your business up for crowdfunding investment means you’ve really got to put yourself out there. Think of this as a kind of audition for your company. If you’ve got a great idea whether that’s for a restaurant, a dog grooming business or cleaning service you’ll know right away if yours is a good idea for this investment community. If no one bites, it might be time to rethink your business idea.

You’ll Sharpen Your Marketing Strategy

Many crowdfunding sites allow you to post videos or photos as part of your business pitch. Just like you’ll be instantly told whether your overall idea works you’ll also have an instant response to your marketing campaign. Yes, your pitch isn’t the same thing as a television commercial but you’re still tossing out what you think is the best approach to selling your product. The amount of money you receive will tell you if your pitch worked or not.

You’ll Get Help

By tapping into crowdfunding you are basically taking on many new business “partners.” This doesn’t mean that all the investors are going to be chiming in with how you should be running your company but there could be a vast amount of knowledge that you can tap into besides the investment.

For instance, a restaurant owner who is looking to expand their business might find a former restaurant owner among the crowd who can offer sage advice. There could also be a contractor which might offer a good deal on the work. The bottom line is that you just don’t know who might be in your crowd that will be a help for your business.

You’ll Get Better Organized

Anytime you seek out investors for a business you have to be organized. Investors want to know their money will be put to good use. This means providing a business plan and opening up your books for inspection. If you’re not organized then you’re not going to attract any type of investor. Knowing you’re going up on “stage” will get you organized rather quickly.

How's Your Elevator Pitch?

Wouldn’t it be great if we could conduct all of our business in the time it takes to ride in an elevator from the top floor to the parking garage? Imagine how quicker decisions would be made.

Actually, that’s exactly the approach you should take when developing a pitch about your company to potential investors. Can you communicate what your company does in 60 seconds or less?

Here are some tips to help you develop a stronger “elevator pitch” that can help with your small business fundraising plans.

1)      Watch the Clock: Any pitch you make for your business should be concise and impactful. The goal would be to get the perfect description of your company, its benefits and future plans all down to a 30 to 60 second pitch. Remember the goal is to interest the potential investor about your company in 60 seconds. All you want is to hear are those three magic words: “Tell me more.”

2)      Offer a Solution: Your business should be built upon the premise of solving a problem. Whether selling a cleaning product or an accounting software program, you have identified a problem and most importantly you’ve created a viable solution to that problem. That’s what should be in your pitch: What is missing in the marketplace and how your business can fix that.

3)      Stay Genuine or Keep it Simple: By the time you get a face to face meeting with an investor they’ve heard plenty of pitches. This means they’ve heard all the “business speak.” You’re not going to impress anyone with buzz words. Tell the story of your company and its successes in plain English. You’ll get a lot further that way.

4)      Know Your Investor: While it is true that you never know who you might end up in an elevator with, chances are you’ll know who you’re pitching your business to. Do your homework so that you understand just who this investor is and what they are looking for. You might have to adjust your pitch to fit an investor but that shouldn’t be a problem once you’ve worked it all out in advance.

5)      Speak From the Heart: Yes, the bottom line is crucial but so is passion. An investor wants to know that you’re going to be working extremely hard with their money. Don’t be afraid to show them your passion and commitment; just don’t take it overboard.

6)      Have a Call To Action: If you sell the “idea” of your business then your investor will want to know what’s in it for them. Every pitch should end with a call to action. Even something as simple as “Can I send you a business plan?” should be followed up instantly with “And when would be the best time to reconnect?” Unless you get turned down in the room, you’ve got a door open.

It will be up to you if you can walk through or not!

4 Mistakes That New Bloggers Make When Starting a Blog

With the changes that Google has recently implemented to their search algorithm, content marketing has become the newest buzz word. Instead of driving traffic using Search Engine Optimization (SEO) tactics, websites that post a lot of great content on their website are becoming more successful in getting higher rankings.  Having a blog on your website has become one of the best tactics any marketer can use to stand out from the crowd and also attract the attention of search engines.

 Much like a Twitter or Facebook account, a blog is another way to reach out to a vast global audience. Blogs can also lend great support for a business not only to direct new customers to a web store but also provide great content to keep loyal customers coming back for more.

However, just because it is easy to set up a blog doesn’t mean every blog will be a success. Here are some common mistakes that new bloggers make and you should avoid:

Copying Content

There is an abundance of resources available all across the internet to support your blog but that doesn’t mean you should just be cutting and pasting a bunch of articles. You should always strive to have original content.

That doesn’t mean you can’t be inspired by an article or video to write a post. In fact, you can even use that post as link on your site. Many search engines want to provide their users with quality content, and they check if the information that you provide isn’t a duplicate from another site. If you’re running a business blog and don’t fancy yourself  good at writing, there are plenty of talented writers who can help create 100% original content for your blog.

Diving In Without Research

To get the most out of a blog you need to do a little research. From a technical standpoint you could literally start a blog within seconds by registering a name on one of the easy blog sites like Wordpress or BlogSpot. Then what?   Find out how a blog works in terms of links, pings, tools and how to drive traffic. You should also be looking for the various blog networks that you can plug your blog into. This will help you spread the good news of your blogging efforts.

Cluttered Layout

A blog is not a scrapbook. Yet, some new bloggers try to crowd as much of the “whiz bang” features onto their blog as possible. Take it slow. Just as you should be researching where your blog should live, you should also research the various templates you have at your disposal for layout options.

Start with what appeals to you. Is it easy to find what you’re looking for on a site? Can you quickly access archive material? Is the font pleasing to view? What’s great about blogs is that the layout designer will also get credit. Look for that credit at the bottom of your favorite blog and use that for a reference for your own blog.

Boring Headlines

A blog is the sum of all its posts. Those posts begin with a strong headline. Consider every time you pick up a magazine or newspaper: Isn’t it the headline which first grabs your attention? That’s what you should aim for with your own blog posts. Asking questions is always a good way to pull a reader into a blog. Keep it simple but make it original.

Are Canadian Courts Adapting with New Technologies?

The cornerstone of any free society is a thriving court system which takes the approach to justice very seriously. For a court system to truly serve its constituents it has to keep up with the technology and the Canadian legal system is no exception.

Fortunately, the modern technological advances that have been woven into the Canadian courts have proven to not only be cost effective but also to serve the greater good.

I see you!

There is a practical aspect of adapting technology to court use and that has to do with geography. Beyond our vibrant urban cities, Canada is a vast land of abundant resources and environments. The current population stands at 30 million + but we are scattered all across the Canadian landscape. As such, it’s not uncommon for a judge to be issuing rulings 1,500 miles from the main courthouse. This is where video conferencing has made a huge difference in terms of expediting court cases.

With video conferencing, a judge can review, cross examine and make a ruling on an applicant who might be several miles away. By adapting video conferencing there is also a great reduction in the need for prisoner escort costs. In some cases, a video conference is a benefit when a hardened criminal can remain incarcerated without the chance of getting contraband passed to them outside the confines of the jail. This is definitely a case where swift justice can prevail.

Shuffling papers…

Another positive use of technology is with case management, especially the large amounts of paperwork to manage. New software and systems have been created that allow documents to be created, edited and stored virtually on secure servers. It allows court clerks instant access to case files and removes redundant data entry.

As with the video conferencing, upgrading to a case-management system for certain court documents is a cost saver not only on paper but also physical storage space. The caution is to insure that these documents are secure. Safeguards need to be put into place to make sure only designated court personnel would have access to these types of records. By the same token, these files have to be properly updated to insure that an innocent party has their record expunged.

Efficiency is the key

During the actual trial, technology can play a role when it comes to evidence presentation. A power point presentation is easy to compile and understand. It’s also helpful when it comes to reviewing that evidence if it is kept on a single file as opposed to scattered over dozens of charts and placards. Many courts have upgraded old transcript recording to new digital recording methods. Once again technology proves to streamline a process while reducing costs.

Clearly, the Canadian courts are putting technology to work. The question then becomes how dominant will that technology become and will there be safeguards to protect privacy?  Ironically, the answer to that will be decided by the courts.

5 Entrepreneur Blogs You Should Follow

Becoming an entrepreneur means you are entering into a new club of like-minded business professionals all with a common goal in mind - success. Although competition might be fierce in some circles, overall the majority of working entrepreneurs are happy to share their knowledge. Here are the top five entrepreneur blogs based on survey conducted by the Wall Street Journal.

Get Elastic: This is a blog dedicated to all things e-commerce. Started by Elastic Path Software, a technology company that provides online brands with ecommerce software solutions, the blog was created to showcase their expertise. However, you won’t see Elastic Path pushing their products in the blog. Any start up business can benefit from the vast amount of content detailing aspects of digital commerce, social media, web design and conversion optimization. If you’re unfamiliar with any of those categories, you’ll quickly become educated on Get Elastic.  Most interesting article : 9 freemium mistakes to avoid.

Seth Godin’s Blog:  Don’t be dismayed by the simple title - this blog is all substance. Seth was the founder of Yoyodyne which was an interactive direct-marketing company that Yahoo scooped up back in 1998. Seth has been in the entrepreneurial business ever since as a bestselling author and insightful speaker. With 183,000 Twitter followers who read his daily tweets, he is considered one of the most innovative minds in marketing. Although his blog posts aren’t long, they are poignant and have great insights into the world of consumer marketing. One of our favorite blog post is Understanding Stuck. Among some of this book titles are “Meatball Sundae: Is Your Marketing Out of Sync,” “Small is the New Big,” and “Purple Cow”.

WorkHappy.net: In the dynamic world of online business, it’s hard for a startup business to stay ahead of the curve. Thankfully, WorkHappy.net is standing by to provide readers with all the valuable tools any entrepreneur will need to help make their business a success. The title of this blog says it all - Killer resources for entrepreneurs. The founder, Carson McComas, has been involved in the online marketing world since 1998, having started and marketed various websites and he shares his expertise of how you can make an online business successful.  Most interesting article that we like: Bootstrappers, this is the golden age of the internet frankenstartup.  Clearly, there is a lot to learn from blog writer Carson McComas.

Drew’s Marketing Minute: If the success of a business is built on a strong marketing campaign then you could greatly benefit from following Drew’s Marketing Minute. Drew McLellan has 25 plus years as marketing veteran and as his bio states, “…he lives for creating aha moments for his clients, clients’ customers, peers and audiences across the land.” It’s worth checking in with a blog like this at least once a day to catch up on the latest marketing trends and to become inspired. A blog post that we like: What you can learn from a small town.

Blog Maverick: It’s rare to get access to a successful entrepreneur because they are so busy with their next venture. However, it’s not the case with Mark Cuban – one of the most outspoken entrepreneurs in the US. Mark started from extremely humble beginnings and has grown an empire that includes a NBA basketball team, entertainment companies and business investments through the popular TV series Shark Tank.  With every post on Mark’s blog, readers are encouraged to join in on the conversation.  Most interesting post: Facebook IPO , post mortem killer but not for the reasons you think