How Mobile is Driving e-Commerce in the Future

Back in the sixties, the popular sci-fi series "Star Trek" showed us the way with its handheld communicator. This device allowed crew members to talk with their shipmates at very long distances.

They were also able to use that same device to tap into the vast resources of their super computer. Flash ahead to today and that bit of fantasy has become a reality.

We all have the ability to carry a super computer in the palm of our hands. We can look up information, check out the weather, get directions, stay in touch with friends and go shopping. In fact, mobile technology is going to be a leading factor that will drive e-commerce to further successful heights in the coming year.

Here's why the mobile device is having an impact on e-commerce:

1      Multiple devices and platforms increase brand visibility

Each year cyber shopping is carving out a larger portion of the retail pie with no signs of it letting up. It's not just the cell phone that is driving e-commerce but also the pad or tablet device. With iPad leading the charge shoppers are happy to download apps from their favorite stores and sign up for Twitter promotions and special offers. For the online brand, this means developing a web portal that can cross over on many platforms. You shouldn't limit yourself to just one device and stay competitive.

 

       Easy access for the consumer at all times

A major benefit that mobile users enjoy is the instant access to ordering a product online. Mobile apps have improved so much that they are considered the best friends of today’s users. The apps that are preferred are those that make it easier to find products and services on your cellphone and purchase the products. Consumers can download apps which let them scan bar codes to find the best bargain. If it happens that your website is selling that item at a better price then a few clicks later could have you closing a sale.

      Rising mobile demand

As smartphones are becoming cheaper and more powerful, their adoption is rising. In the US alone, web-enabled smartphone purchases have 46% of the cellphone market. Thus, the market for e-commerce consumers via mobile platforms is ever expanding. With the expansion, there is a logical increase in the use of cellphones for e-commerce.  

Improvements in technology are helping businesses and customers shop and it's only going to get better. Case in point: The Shazam app. Once downloaded, you can activate Shazam to "tag" any song playing on the radio or TV. That song becomes part of a virtual shopping list that is tied directly to iTunes. Hear it, tag it, buy it.

The mobile shopping experience doesn't get any better than that! 

How to Begin Succession Planning

What are you really working for? Is it to build a legacy brand or to secure a restful retirement? In actuality there is no reason why you can’t accomplish both of those goals. From the moment we start working we look forward to the day when we can stop working.

Perhaps you have a bucket list that includes traveling, taking up a hobby or just reading every day. Whatever your retirement plans might be you want to make sure you the kind of financial security which will allow you to maintain a decent quality of life.

As for your business, you don’t necessarily want it to come to an end just because you’re ready to scale back. When it comes to your succession planning here are some of the steps you can take to be ready.

1.      Plan Ahead

Just as you plan on retiring some day from the moment you start working, you should also be thinking about how your business will carry on when you move on. This doesn’t mean finding a successor in the first year of your operation but it should be something that is always in the back of your mind. You might identify a particular executive who has the right stuff to take over some day. If so, you could start to groom them so that they can be ready to be a CEO.  Just don’t keep your intentions a secret. If you’re going to invest your energy into an employee let them know what you’re thinking. That will have them on the same page and working towards a common goal.

2.      Build the Right Team

As you already know, starting a business is not something you can do on your own. The same holds true for your succession. You need the same accountants, lawyer and advisors you used on the way up for your exit.

3.      Last Will and Testament

The worst case scenario would be for your business to carry on without your input because of an untimely death or debilitating illness. This is why it is essential for you to prepare a will. There might actually be a requirement in your corporation bylaws which states you have to have this type of document in place. Estate planning will allow you to designate the representatives you want to have in charge of your business. Keep in mind that there will always be opportunity to amend the document as conditions warrant but it’s best to have that foundation in place. This is also the reason why you should have a comprehensive insurance policy in place as well. Benefit payments could help with the continuation of a business.

4.      Think About Your Family

Many businesses become a family legacy with the ownership being passed down from generation to generation. Although noble, that isn’t always practical. If you do have children who you would like to take over the business make sure that is something that want to pursue. That last thing you would want is to force them into a career they have no passion for. 

How to Manage your Independent Contractors

Every day more workers are joining the ranks of the independent contractor. As someone who is considering tapping into this potential workforce you want to make sure that freelancer is going to get the job done right. Here’s what you need to do to make sure you’re getting the work you’ve contracted for.

1.      Make the Interview Call

A lot of freelance work can be conducted exclusively via the internet. This means you can search, hire and accept work all through email. However, to make sure the independent contractor you’re considering is reliable, reach out for a quick telephone interview. You can put forth your expectations and find out more about the candidate over the phone then you could with an email exchange.

2.      Write an Employee Contract

If you expect nothing then you’ll never get disappointed. However, if you want a freelancer to achieve certain goals then put them in a contract. There should be no question as to your expectations of their performance, their compensation and what measures it would take to terminate the contract. Start out by being on the same page.

3.      Set Specific Deadlines

Every project should have a delivery date. Your freelancer should be well aware of those dates and be able to deliver on time. What they don’t need to know is if the deadlines you’re providing are the actual deadlines. There is nothing wrong with a little padding on your side! That way you can make any corrections or fill in the gaps if that contractor doesn’t deliver. And all the deadlines should be in writing.

4.      Don’t Micromanage

With every new type of employee there will be a learning curve. You’ll want to make sure they understand the assignment and that they are delivering on time and on budget. In the beginning of a new working relationship, you might feel the need to check in on the progress. Nothing wrong with that. But once that contractor has proven they can deliver, let them do the work. No need to keep poking them for progress.

5.      Make Yourself Available For Clarification

It goes without saying that your employee can ask you for clarification about an aspect of a project. The key is to make sure you’re responding to their query in a timely manner. You don’t want them to stop the work while waiting a day for your answer. This could prove to be a challenge if you’re managing someone in a different time zone. Keep checking your email when you’ve got a deadline approaching.

6.      Reserve the Right to Terminate

If you reach the point that a freelancer isn’t living up to their end of the contract, then you’re well within your rights to terminate the agreement and move on. There are too many talented folks out there who can deliver exactly what you’re looking for without the hassle. 

How to get a Distributor to Represent your New Product

You could have the most amazing product on the planet but without proper distribution to get that item out into the marketplace, you're going to end up with a warehouse full of inventory wasting away. The right distributor will get your product to as many potential customers as possible but how can you find that partner?

The following steps should provide an informative road map for picking a distributor for your new product.

Step 1: Do Your Research

Find out who is distributing similar types of products in your area. The big brand name players handle their own distribution, but as a small business start-up you should be able to find many options in your neck of the woods. You can also ask for recommendations from other business owners. Another great resource is an industry trade show. You're sure to make many contacts there for potential distributors.

Step 2: Set Up Interviews

Once you've narrowed down your list to the top picks, you'll want to set up meetings to pitch your product. Keep in mind that you're looking for a viable partner not someone who is just going through the motions of shipping your product from one outlet to another. You want them to be excited about the product that you're offering. If you don't get a strong sense of their dedication then they're not going to be the right partner for you. 

Step 3: Get the Stats

As you get down to the top candidates, you'll want them to "sell" you on their abilities. Ask for previous sales figures, marketing campaigns and how much reach they'll have across the country. Can this distributor roll out a product nationwide or are they restricted to a single coast region?

Step 4: Crunch the Numbers

A distribution fee will be factored in as a percentage of your production costs. The key is to keep those costs down in order to improve your profit margins. You might find that the distributors you are considering are all offering the same rates. However, a one or two percentage point difference can add up to substantial savings.

Step 5: Work Out the Process

You want to clear about expectations on both sides. How will you get your product to the distributor? What will the payment structures be? Who will be handling quality control and tracking? 

Step 6: Check References

Finally, you'll want to follow up on the references provided by your distributor candidates. Call up those businesses and find out how effective those distributors have been. Make sure to ask about any problems they might have had.

The best decision to make is an informed one!

How to Protect your Company from a Lawsuit

Nobody likes getting sued. If you’re a start-up, a lawsuit can bring your business to a screeching halt.

On some level, you can’t ever provide 100% protection against a lawsuit. Anyone can sue anyone at any time. The issue becomes whether that lawsuit has merit or not. Hopefully you can institute the following steps to make sure you would be protected against lawyers bringing frivolous lawsuits against your company.

Step 1: Be patent and copyright compliant

If you are selling a product that you invented, you should have patent and copyright protection in place before you make any sale. There are plenty of internet resources you can tap into that will let you determine whether or not you might be infringing on someone else’s copyrighted material. If you’re making a new product is “like” another product then having your own copyright or patent should insulate you from a lawsuit going forward. This type of research should also apply to any type of logo or other marketing device you intend on using. For instance, if you’re selling a new patented blend of cotton T-shirt but have Mickey Mouse imprinted as the design you could be sued by the Disney Company unless you have licensed that image.

Step 2: Incorporate

As the sole owner of a start-up business, you might think it’s not necessary for you to incorporate yourself. After all, you’re making all the decisions, right? In truth, incorporation provides a layer of protection against liability. If your business is sued it would only be the assets of that incorporated business that would be at risk. All of your personal assets would be safe. In the worst case scenario, an incorporated business can declare bankruptcy and you can turn around a start a new business the next day with a new corporation.

Step 3: Always get it in writing

There isn’t an aspect of your business that couldn’t benefit from a well written contract. Whether that document is between you and an employee, vendor or client having all the terms clearly spelled out will help reduce the instance when someone could find fault with your practices. That’s why contracts should always include clauses to consider all the possibilities of a particular outcome. 

Step 4: Don’t steal staff

Too often the best potential workers are already working somewhere else. There is nothing wrong with hiring a worker away from another company. It happens all the time. However, when you get into situations where intellectual property is involved it might cause some problems down the road. For instance, if you’re starting a mobile game development company and you poach a great designer from another company, that company might take exception with the kind of knowledge their former employee is bringing to your company. This is why there are non-compete clauses in a person’s severance contract. If you are hiring someone in a situation like that make sure they are coming to your business free and clear.

Does Facebook Advertising Work?

One billion plus.

That's how many current Facebook users there are. More than likely, by the time you read this article there will be millions who have signed up for this social network.

Even if you were to get a response rate of a fraction of a single percent point, your advertising would still be reaching a lot of potential customers.

There are other reasons why Facebook advertising is a good investment. Consider these advantages:

·         Targeted Demographics

Effective advertising comes down to targeting your demographics. Facebook advertising allows you to get very specific in terms of your potential customer base. Not only can you focus on gender and age groups but also on the many "likes" that a Facebook user can tap into. If you're selling hockey jerseys then you'll want to get your ad in front of any fan of the game. Facebook can help position you to those demographics. 

·         Going Local

Not only can Facebook help you focus on demographic groups but also on geographic locations. Everyone who signs onto Facebook has the ability to "mark their spot." This affords local businesses the chance to reach out to those customers who are spending directly in their community.

·         Effective Marketing Spending

As you prepare your Facebook advertising campaign you'll be able to project just how many users will see the ad. This is important for the kind of pay per click ads that Facebook excels at. You'll be able to scale your budget to fit the potential reach of your ad. That will make your marketing dollars have a stronger ROI.

·         The Viral Effect

Whenever a Facebook user "likes" your company page, that "like" will show up on their news feed which in turn is posted on the news feed of all their friends. This can have a snowball effect of spreading your message even further as hundreds of more users are exposed to your ad.

·         Custom Branding Choices

The Facebook ad allows you to use powerful images that can draw attention to your post. Because of the ease of accessibility, you can change up those images and find which ones work best for your campaign.

The bottom line is that a billion potential viewers are logging onto Facebook on a fairly consistent basis. In terms of online marketing, this is really the greatest reach of any site out there.

As with any type of advertising campaign there is no guarantee of success.

However, with Facebook advertising you can start small with a targeted campaign, test its effectiveness and roll out a wider reaching strategy.

Definitely worth exploring.

How to Reduce your Legal Fees

As professions go, lawyers are probably among the most maligned out there. You definitely want a "barracuda" on your side but the moment an attorney starts serving you papers they become the bane of your existence.

If you're in business, you need a lawyer. Hopefully it will only be for the start-up and lease negotiation process and not defending you in a lawsuit.

Even with the simple contract work, legal fees can take a huge chunk out of your bottom line.

How can you reduce your legal fees? Consider these ideas: 

1)  Be clear on what you’re paying for

Before entering into any arrangement with a lawyer you should understand their billing practices. Instead of billing for every piece of work on an hourly basis, your potential attorney could work on a flat fee. This is a good arrangement especially if you are looking for contract review and not a lot of back and forth "fixes."

Understanding what you're paying for also means going over your bill every month. If something doesn't look right, ask your attorney for clarification.

Make sure to keep track of your own contacts with the lawyer to compare with the bill.

2) Think before you call or email

Having a lawyer at your disposal is a bit like living with a doctor; you just can't resist the urge to ask about every question that pops in your head. Just know that with a lawyer you're going to be billed for every phone call and email that you send.

Even if it takes them 30 seconds to respond, they're going to charge you at least a quarter of an hour.

All of this means to plan before you communicate. You might be able to answer your own question and save yourself some bucks.

3) Do some of the work yourself

Always keep in mind that lawyers will bill for everything. Reduce costs and time by making copies and delivering documents on your own. Also, try to respond in a timely manner whenever your attorney requests information. If they have to keep reminding you to submit something, that will be another charge.

4) Don't hesitate to shop around

Nurture a great working relationship with your lawyer. It could make all the difference. However, if you find them doing the kind of basic work that any decent attorney could do, you might be well advised to shop around. Find out what other attorney's are charging. Ask your friends who they use. Remember that the lawyer is working for you!

Is Buying a Shelf Company a Good Strategy?

As a startup business owner you might find yourself overwhelmed by all the new information you need to assimilate. This is especially true if you have designs incorporating your business and eventually taking it public. Just because you’re starting a business doesn’t automatically mean you need a business degree, but it will help to familiarize yourself with the basics. One business model concept you should be looking into is whether or not to buy a Shelf Company as part of your business strategy.

So, what exactly is a Shelf Corporation?

A Shelf Corporation or Aged Corporation is an official corporation that has been created but is not being used by that creator. There are many reasons why a corporation could still be idle but that doesn’t mean they don’t have any inherent value. Think of these as “instant” corporations as it pertains to helping your business start up. How can your business benefit from taking over a Shelf Corporation? Consider the following:

·         Time Saver

Buying a Shelf Corporation allows your business to get up and running a lot faster. The incorporation process can often drag on for months. With a Shelf Corporation that work has already been done. It would be like stepping into a franchise business. All the equipment and supplies have been purchased; you’re just taking over control.

·         Faster Access to Credit

Many vendors would prefer to do business with an established corporation. Therefore, a new startup might find obtaining lines of credit a challenge. An additional hurdle for a new business is being asked to provide a personal guarantee for loan. That could greatly hinder your chances to secure immediate financing. A Shelf Corporation can establish the kind of corporate longevity that can open up a lot more credit possibilities.

·         Instant Credibility

A Shelf Corporation allows your business to obtain instant credibility. This is important to potential investors. You’re not fooling anyone because the history of the corporation will be a matter of record. Instead, you’re stepping up your professional game and establishing your credentials.

·         Access To Government Contracts

Depending on your business, you might have the opportunity to do work for the government whether that is a local municipality or on a national level. These can be a very lucrative asset for your business. However, some government agencies require a business to be already be operational for a specific amount of time. You can meet that requirement with a Shelf Corporation.

How to Understand Canadian Small Business Taxes

Starting a small business means you’ll have the opportunity to become your own boss and make some of your dreams come true. It also means you’ll have to pay business taxes. For some small business owners paying taxes turns that dream into a nightmare. There are numerous resources you can tap into that can guide you through the completion of the tax forms if you decide to make it a DIY project. Many business owners prefer to bring in outside help like an accountant or tax attorney. Whichever option to choose, it will be helpful to begin with a basic understanding of small business taxes.

What Type of Business Are You?

Entering into a business means you have to pick which type of business you’ll be operating as. Your choices are:

1)      Sole Proprietorship

2)      Partnership

3)      Corporation

A sole proprietorship means you are the only owner and you’re not incorporating your company. With a partnership, there will be at least two owners (could be more) who contribute to the business. Any profits you make in a partnership will be divided based on the rates established in your partnership agreement. A corporation is a standalone legal entity that is allowed to sign contracts and own property. Many business owners choose the corporation option because it provides a level of protection for personal assets. In other words, if your corporation is sued then only the corporation’s assets are in play.

What Are the Filings Dates and Forms?

As sole proprietorship business owner you will be filing a personal income tax just as you would if you were working for someone else. You’ll pay taxes on all your business earnings that will be included on the T2124 Statement of Business Activities form. The fiscal year for a sole proprietorship ends on December 31^st. If you want to select a different end of the year in fiscal terms you’ll need to use form T1139. With the December 31^st end you’ll need to file by June 15^th.

With a small business partnership, the partners will file their share of the business earnings on their individual tax returns. The same filing deadlines as the sole proprietorship business apply.

A small business that has incorporated will use form T2 for corporate income taxes. That form needs to be filed within six months of the end of the business’ fiscal year. All tax forms for any type of business need to be kept for six years.

What Are the Earnings and Expenses?

Here’s where it gets a bit complicated. When a business records any type of earning or expense they need to use the Accrual Method. Translation: You’ll record revenue when you have delivered the good or service not when you’re paid for it. Same for expenses; you record when you incur the expense, not when you pay for it. This is why thorough record keeping is so essential for a small business. To make a business expense deduction, you need to prove that whatever you purchased was used exclusively by your business. As for earnings, that is considered as any money you take in that is a result of your business services.

The Google Patent Search Tool - Does This Affect Your Intellectual Property?

A patent is all about protection for your intellectual property. The United States provides patents to give inventors the right “to exclude others from making, using, offering for sale, or selling their invention throughout the United States or importing their invention into the United States.”

Every country can grant a patent which would govern that property in that country. It is conceivable that a patent granted in the U.S. or Canada doesn’t necessarily offer protection against infringement in a country like China or Russia.

Still, it is advisable for a business that has a piece of intellectual property to have it patented in as many countries as possible.

Google has created a patent search which is becoming a huge asset to many businesses. When you consider that there are 8 million approved patents and 3 million pending patent applications in the U.S. alone then you can see the need for a search engine. Now Google has put that database of the United States Patent and Trademark Office online for easy access. How can this help you protect your intellectual property? Consider these benefits:

Clearing the Field

The first obvious benefit of a Google patent search is to see if somebody beat you to the punch. In other words, has your brilliant idea already been developed? This is a search that really should be conducted once the plans for an item are ready to go to the prototype stage. If you find that your idea has been patented you’ll either have to rethink it entirely or scrape the project. Better to learn that in the early stages of development.

Borrowing Innovations

Suppose you’re in the kind of business that needs to create a machine to make the perfect widget. You’re really selling the widget but it has to be mass produced to be cost effective. That special machine you design to make the widget could be patented. However, you might find that another business has a similar machine you can adapt. There’s no need to go down the expensive patent review process when you can license the right to use that technology from the original patent holder. Remember, you want to get to your “widget” and the most affordable and stress free path to that goal is the way to go.

Getting Inspiration

There aren’t a lot of secrets when it comes to granting a patent. If you’re working through a challenging design you might do a patent search for similar products to see how other inventors overcame their hurdles. Who knows? You could be inspired to take your idea in a new direction that no one has thought of.

Inventor 411

It could be that you’re so impressed with a particular product or piece of intellectual property that you want to know more about the originator of that idea. The patent search will let you trace the inventor and find out what other ideas they’ve worked on.