Overview of the Canada Not-For-Profit Corporations Act

Recently, a new law called the Canada Not-For-Profit Corporations Act ("CNPCA") came into effect aimed at eliminating unnecessary regulation and providing flexibility to the not-for-profit sector. The new legislation modernizes the corporate governance of not-for-profit corporations by promoting accountability, transparency and efficiency.

The Act in its entirety is lengthy and detailed so not-for-profits will have up to 3 years to transition into compliance. Below is a list of some of the Act’s more important provisions that may affect you and your not-for-profit.

Incorporation:

The process of incorporation has become more streamlined under the new Act making it faster and more efficient. Instead of submitting the letters patent and by-laws for review, incorporations now occur “as of right” upon submission of the signed articles of incorporation.

By-laws:

Before the Act was implemented Industry Canada required incorporating not-for-profits to prepare and submit by-laws governing corporate matters to be reviewed and approved at the time of incorporation.  Under the new legislation it is no longer necessary to draft and submit by-laws with the application for articles of incorporation. The new Act requires by-laws that deal with member issues only. 

Members:

Members’ rights are enhanced under the new Act. The new rights include: the right to submit a notice of proposal to request said proposal to be discussed during a members meeting; the right to request a meeting at any time; the right for non-voting members to vote separately from voting members on matters that impact membership rights; and the right to access corporate records to monitor board compliance.

Directors:

A director’s liability and standard of care are protected by the “due diligence” defence as understood in the common law duty of acting in honest and good faith. In this legislation specific liabilities are given to directors concerning payment and distribution to members, debt obligations, and wages payable to employees. However, directors who meet the standard of care are protected from liabilities through the “due diligence” defence under the new Act.

Financial Accountability:

The Act divides not-for-profit corporations into soliciting and non-soliciting corporations, which are subject to different regulations depending on which category your not-for-profit falls under. Your gross revenues are also dependent upon the rules and requirements for reporting under the new legislation.  

To facilitate the change, Industry Canada will not charge initial filing fees related to transitioning from the CCA to the NFP Act. To view the Act in its entirety, please click here.

Providing great customer service

Everyone knows that loyal customers are profitable customers.  They purchase more frequently, buy a broader range of products and talk about your company to others as much as possible. It’s important that you take care of them as the more you do and show how much you appreciate their business, the more your clients will keep coming back.  As a company, providing great customer service should be a priority at all times. Here are some tips that will help you provide the best customer service you can. 

Fast service, faster communications.

Remember to communicate everything to your client quickly.  Reply to your clients’ communications as quickly as you can, as not acknowledging an email or voice mail is merely going to create more frustration.  Always be considerate of their needs by acknowledging their request or communications. You may not be able to complete a task or a request immediately, however you can always let them know that you received their message and provide a new schedule. Manage your client expectations by communicating your customer service communications policy i.e. when they should expect a response from you.

Keep clients updated.

Always let your clients know where you are in a project or in a product repair. Not knowing where they stand or what the status of a project is not a great feeling to have.  Make regular reports to your customers and let them be aware of how things are progressing. Are you facing any issues or challenges? Or is everything on track? Even if you’re experiencing any trouble, do not hesitate to let them know immediately and propose a solution to solve the problem. It shows that you’re keeping them in the loop and that you have things under control. Communicating any issues right away helps your client plan for contingencies.

Fix your mistakes.

If you did something that didn’t end up working, you should repair it as soon as possible. An easy way to lose a client forever is not admitting that you are at fault and not fixing your own mistakes. When you don’t take responsibility for your own faults, it is a quick way of getting a bad reputation.  

Go beyond the call of duty.

There is a maxim that you should always over-deliver and under-promise.  Not only will this result in a happy client, you will always be in top of mind as someone who can get things done.  Surprise your customers in not only delivering it ahead of time but providing an extra discount! Offer value – replace their product while it’s being fixed or pay for the shipping to pick up their broken item from their home.  You are not limited in how you can provide great value as long as you make it easy for the customer to do business with you.

Listen. Listen. Listen.

In all communications, the most important part of it is listening. If you’re not listening to what the client is saying, you are setting the stage for future frustrations. When a client is being very vague, don’t be afraid to ask them to clarify. Try to read between the lines - by understanding what they are really saying, you can offer suggestions on the best way to go about fulfilling those needs.

Remember that providing great customer service is knowing  how you would want to be treated if you’re faced with the same situation.  No matter what kind of business you have, if it is customer based then maintaining quality customer service is the key to a success and profitability.  

Low cost online marketing tactics to drive awareness for your small business

Marketing can be expensive, however, you don’t need a six-figure budget to drive results. Here are some great tactics you can put into action that will help you build buzz and drive traffic back to your website. While these ideas are not expensive, they will definitely take a bit of time and effort to master.  

1)      Blog commenting:  This is a simple and effective way to drive traffic back to your website or blog. Blogging is a social activity, a two-way conversation between the writer and their readers so if you join the conversation you must add value to it. By posting insightful comments on other blogs, you not only build relationships with the bloggers but also with their readers. Remember to only comment on blogs that are related to your industry or targets your market demographics.

2)      Posting in message boards: Although they may have been around since the beginning of the internet and are relatively unchanged, they are still extremely effective for driving traffic and building awareness. There are thousands of message boards around the internet for almost every topic. By joining and participating in their discussions and consistently offering great advice, you will be considered as an expert and drive traffic to your website. 

3)      Search Engine Optimization: Search Engine Optimization has become one of the most important marketing tactics that you could use to drive traffic and awareness to your business. With millions of people using Google and other search engines every day, why shouldn’t you target your website to them? By ranking higher in the search engines, you have the opportunity to drive thousands of visitors every day to buy your services and products.  

4)      Create a blog: Regardless of what you sell online, you must have a blog. The benefits of writing a blog goes beyond building a relationship with your prospects and customers, it can also help your site’s organic SEO ranking. Because Google ranks websites higher that post frequent content that people link to, having a blog makes great sense for your company. By posting great content, stuff that people can’t find anywhere else, you are positioning yourself as a resource that people go to for information. Make sure that you share your content through social media sites such as Digg, StumbleUpon, Facebook and Twitter. For many websites, a blog accounts for a large portion of their monthly traffic. By converting that traffic into leads, you can have your sales team follow up and make them customers.

5)       Build your social media presence: You should be taking the opportunity to have a company profile or page on social media sites such as Facebook, Twitter and Google+.  They will be good areas to get new clients that you normally wouldn’t get. And the best part is that it won’t cost you anything except the time it takes to maintain your profiles. Don’t forget that people are on your pages because you provide content that they can’t find on their own. You build up your profile when you share and participate in the social web.

6)      Be a guest poster:  Another great way to get some awareness and traffic is to write guest posts on other blogs within your industry. With thousands of blogs found on the web, you will be able to find a few popular blogs that you can write for. And the common thing that all these blogs want is more content. By writing guest posts, you will not only get organic traffic but, even more valuable, backlinks that can help you with your Search Engine Optimization campaign. 

7)      Video marketing or YouTube: Now that they appear in search results, videos have become a great way to market your service or company. You can optimize them to appear higher in the rankings and create great videos to show clients how good your products and services are.  Remember, people go to YouTube to either learn or be entertained.

8)      Get interviewed: Getting publicity from major news outlets is hard, however, you can still get publicity from blogs and smaller online newspapers. Contact various bloggers and give them a reason as to why they should interview you. Mention your company’s achievements or why their readers will find you awesome. If they say yes, they will most likely email you some questions and post your response.

There are many ways that you can generate awareness and branding without having to spend money, it just requires some creativity and effort. There are many examples of companies achieving greatness through using low-cost marketing tactics and competing effectively against their competitors. If they can do it, so can you.  Just be aware that you must be willing to put in time and energy to get results.

Small Business Tips for 2012

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

Review what has worked for you last year.

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

Update your sales and marketing plan.

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

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

 Update your website and online marketing strategy.

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

Create a board of advisors or mentor team.

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

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

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!

Why people become entrepreneurs

You’re frustrated, tired and stressed. You’ve realized that your boss is only interested in squeezing more work out of you and that your career prospects in the company are almost nil. You have always dreamed about making it on your own and taking control of your destiny – your own success and failure.

You’re not alone! There are thousands of others who have decided to take the plunge towards entrepreneurship, and in these times of uncertainty more and more people have also decided to take matters in their own hands.

Here are a few more reasons why people decide to become business owners:

1. Becoming financially independent

Although a majority of new businesses fail within the first three years, those that succeed can become very profitable. Starting your business is the first step towards gaining financial independence and achieving the security that you want. Being an entrepreneur allows you to get an income stream that is dependent on your efforts and not on the whims of others.

2. Better career prospects

Sometimes people become frustrated as they feel that their career path is not going the way they want. By starting their own business they’ve decided to take control of their personal and career goals. Alternatively, sometimes entrepreneurs see a better way of doing things in their industry and act on it, providing much needed innovation that is lacking.

3. Looking for personal achievement

There are those who are interested in setting big challenges and striving towards it. These entrepreneurs are goal-oriented and gain satisfaction from accomplishing big things. This is a common trait amongst many entrepreneurs – especially motivated by risking everything on their ideas and overcoming big challenges.

4. Pursuing their own ideas

Certain people see opportunities in areas that are often missed by others -entrepreneurs can see new markets, create new products or improve upon a service. Whatever the reason is, the opportunity to innovate and create is what drives them. Their satisfaction comes from the successful creation of a business and validation of their ideas by the market.

Even though entrepreneurs work more hours, have higher stress and sometimes lower pay than non-entrepreneurs, many have a greater feeling of satisfaction in their work. There are many reasons for starting a business, but a true entrepreneur is someone who gets excited by setting big challenges and works towards overcoming them. Also, the act of building a lasting company is a validation of their ideas, and they gain a deep sense of pride from its successful implementation. So if you’re ready to jump in to the chaotic world of entrepreneurship, know that you’re part of the few that are willing to take charge of their destiny.

Awesome gifts for the entrepreneur on the go!

With the holidays around the corner, it’s time to do some late Christmas shopping. Trying to come up with the right gift for the entrepreneur in your life is difficult as their needs are more practical. Take a look at the list below to help you choose something that your favourite tycoon can appreciate.

A solar-powered electric gadget charger: This is an excellent gift for someone who carries a lot of gadgets – (i.e. iPhone, camera, tablet). So, instead of carrying multiple bulky chargers to charge them while travelling, you can just take one. And it’s all powered by the sun!

The GPS navigator: A great gift for the frequent traveller! They will never get lost on their way to the important business meeting and the best ones can be used for many countries. You should be able to find a good one in electronic retail stores.

Bluetooth headset: With many cities banning talking in cell phones while driving, it makes sense to use a hands-free headset so you can speak on your cellphone while in the car. Not only is it safe, they also look cool. If your favourite entrepreneur lives in their car, make sure they stay safe with this headset.

Smartphones: Regardless if you choose an iPhone, a Samsung, or Blackberry – a smartphone is a great tool for the entrepreneur on the go! They can respond to emails, store files and access the internet while still talking on the phone...This multi-purpose tool is perfect for someone who needs to keep in touch with their business while travelling.

Personal assistant service: A small business owner rarely has any free time between managing their business, making sales calls, dealing with client issues and overseeing employees. It’s no surprise that many of them do not have time to manage their personal affairs such as picking up the dry cleaning, cleaning their house, or groceries... By getting them a personal assistant or concierge you help them with the most valuable commodity – time. With the free time, they can focus on their business.

iPad: One of the most groundbreaking technological gadgets made, Apple has created this for both the business and regular user. Light, powerful and filled with features that the most jaded technologist would love, it’s a great alternative to lugging a heavy laptop. And its compact shape makes it perfect to be used for client presentations and poring over the reports at night in your hotel room.

Setting goals for the new entrepreneur

Setting goals is very important for a business – especially a new one. As an entrepreneur you have so many fires to put out that it’s easy to get lost in the wrong things. By setting long term, quarterly and daily goals, it can help you focus on the priorities that will help your company grow. Your goals set your priorities and serve as a tool to measure your company’s progress .

Setting corporate goals require everyone’s input and should be communicated clearly to everyone. It provides your employees a benchmark to evaluate whether they’re on track and moving forward towards business growth. Without a measurement of progress, it can be difficult to determine what needs to be changed or improved upon.

To set goals for your company and yourself, here are some tips to follow:

1. Create long term goals and break them down.

As an entrepreneur, you need to provide the company vision and to do that is through providing long-term goals. Start by listing your long term goals and then work backwards by breaking these down into more manageable quarterly, monthly and weekly targets. Do you want to make $500,000 in one year? Then break your annual goal into quarterly objectives – $125,000 every 3 months. You should then break this down even further into monthly and daily goals.

2. Goals must be specific and measurable with a clear timeframe.

Like everything in business – you must be able to measure progress. Determine what metrics will be needed to see if you’re on track. For example, to achieve an increase in sales revenue, you must have your sales team make 200 calls/day, send out 7 quotes a day with 2 hours talk time.

3. Your goals should be achievable and realistic.

Make sure that the goals you create for yourself are attainable. Don’t aim so high that you don’t believe that you will achieve them. For example, if your company has never reached a target of $100,000, then setting a goal for a million dollars in revenue will not be believable. You must feel that you and your employees have the knowledge, skill set, and resources to successfully get there.

4. Review your goals regularly.

Make sure that your goals are communicated to all your employees and that they understand how to accomplish them. At the end of each month, review your annual goals to see if you’re on track or if you’ve lost your focus. Do not be afraid to change your goals if you find that they are not achieving your aims.

By defining your goals, it will help both you and your employees to work towards a shared outcome as well as manage expectations. Without these goals, employees may feel lost and lose their focus. Setting goals is like creating a roadmap for your business to progressively grow... Each step you take should be towards the success of your business.

The 3 challenges for a start-up

For many entrepreneurs, starting and growing a business is an exciting adventure – until you come across almost insurmountable obstacles that can break up your company. After speaking with a few entrepreneurs, investors and executives, here are some of the challenges that business owners face when growing their companies.

Not having partners to help share the load

There have been very few successful companies that have been started by just one founder. And those that have succeeded always attracted a good team who were there from the beginning. Why can’t a single founder start a company? Many entrepreneurs say it’s because starting a company on your own is just too much for one person. With daily pressures and multiple areas that you are responsible for, there are not enough hours in the day to deal with them. Even if you could do all the work yourself, you would still need a team behind you to vet ideas, strategies and opportunities. By working with partners you will be able to share the workload and be able to bring the final product to market quicker.

But most importantly, having multiple founders allow the team to help support each other through the most challenging times. When going it alone, trying to manage the daily stress will be difficult. Having a team around you to lighten things or spread the load is immeasurably beneficial.

Losing focus and spreading yourself too thin

This can be a big problem for companies who want to do everything for everyone. If your start-up is growing quickly, it is common for many founders to start adding new markets, and expand too quickly through acquisitions. Don’t try to solve problems that are not part of your niche as this will pull you away from what brought your company success in the first place – your core market. What you should do is tightly define who your target is, focus on what you can offer them and create an action plan that solves their problems.

Not enough cash

Cash is king. You’ve heard this before from various people, however, in a business environment it speaks volumes. How much cash do you have until you hit your next milestone? If your company is an idea, then how much money does it require to create a product/service? If you already have a product, then how much cash does it take to launch? So when you set your financial goals, make sure that you’ve accounted for how much cash it would take to get to the next step. Without sufficient cash flow, any downturn can end your business before it has a chance to fly.

With proper planning and foresight, you’ll be able to overcome any of these challenges and be well on your way to success!

How cloud computing can help your business

Technological advances have provided opportunities for small businesses that have previously been very expensive and only available to big companies with large IT departments. A great benefit for cloud services, which is any infrastructure, platform or software service that is Internet based, is that you can start your company with minimal upfront resources and can scale up as your business grows. For a business owner, cloud computing allows you to:

• save money,

• scale your business,

• increase your services

• and minimize risk.

This allows the entrepreneur to compete as a much larger company while still remaining small. Some of the benefits of cloud services for your small business go beyond just hosting your website and you will be able to take advantage of a myriad of services that allow you to run your business more efficiently. Some of these advantages are:

Price: One of the major advantages of using cloud services are savings in operating costs. You can reap the benefits of lower operating costs by not having any in-house IT infrastructure such as:

• expensive servers,

• networking equipment

• or even the need to hire IT staff.

In the past, businesses had to manage their own internal computing resources, which created huge overhead costs that were insurmountable barriers for small business owners. However, with cloud computing and the myriad of services that you can choose from such as:

• marketing automation,

• project management,

• accounting

• and CRM applications,

Business owners can now lower the upfront costs of running their businesses and provide great value for their customers.

Scalability: One of the benefits of cloud computing services is the ability to purchase services according to your business needs. Many cloud service providers offer a pay as you go pricing, allowing you to manage upfront costs. You only pay for what you need, and as your business grows so does your usage. There is also is the option to integrate their services with other platforms through open APIs.

Flexibility: Cloud services allow you to automate a lot of your operations, freeing you to focus on your business. You can try new business strategies with minimal risk quickly and see if it works. You will be able to work more efficiently and at a lower cost without having to be tied down to services that you don’t need.

For your small business to grow, you need to be able to scale quickly and at low cost. Cloud technology allows you to do that without the need to have an expensive in-house IT team or hardware. With cloud services, you can be more competitive against larger companies by being flexible, responsive and accessible.