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Are you considering Incorporating?

October 23, 2012 by Leave a Comment
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So you've heard that you can save taxes when you incorporate? And you've heard that you can protect yourself from creditors? So let's go ahead and incorporate you say.... Wait a minute! Don't forget these additional considerations: If you’re a small unincorporated business owner or a professional whose regulatory body allows incorporation, you’ve probably given the potential benefits of incorporating a great deal of thought. The most often cited benefits of incorporation are a more advantageous tax structure and creditor-proofing personal finances. But there can be drawbacks. Here are some of the issues to consider when making your ‘incorporate or not’ decision. Cash Flow If you need all of the profits from your business to support your personal cash flow needs, incorporation may not be for you because the cost of setting up and maintaining the corporation could outweigh any tax benefits. On the other hand, if you are financially able to retain some profits inside the company, you could derive significant tax savings. Taxation Vexation If you are just starting your business, incorporation should probably wait because losses incurred by an incorporated business can’t flow through to shareholders. In the early stages of your business, you’re likely better off using losses personally against other income. Once your business begins earning ‘active business income’ (income earned from your business operation, not, for example, from other corporate … [Read more...]

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7 Books that Every Entrepreneur Should Read

May 3, 2011 by Leave a Comment
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1. Art of the Start (Guy Kawasaki) Regardless of Guy Kawasaki being a venture capitalist, he adapts a casual tone to the advice he gives in this book. It is very engaging and practical.  His message is simple: to discover what is required to build a startup.  He goes down from the basics and takes an approach that even a low funds business can use.  He explores everything from bootstrapping, networking, and creating buzz for your business. It's refreshing to be able to read a no-nonsense book that has not romanticized business. He also gives great resources at the end of the book. 2. Never get a Real Job (Scott Gerber) Scott Gerber empowers young people to dump the conventional job for a more gratifying experience.  He takes a no-nonsense approach and says that the journey will not be easy but it will be worth it for those who commit.  He uses his own background, and "real job" experience to show that it is all possible.  He encourages young people not to rely on the notion of job security but rather, create something that they can control. There is a lot of advice in this book from a young author who refused to accept the dead-end 9-5 and went ahead to create his own empire.  A great book full of resources: online tools, websites and more.  This book takes you through every phase of starting a business and tells you what works and what doesn't and what is important and what isn't. Why not learn from the mistakes and the triumphs of others! 3. Smarter, Faster, … [Read more...]

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False Starts, Real Lessons

February 15, 2011 by Leave a Comment
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Despite your most conscientious work and your best intentions, your business idea might flop. Of course, most entrepreneurs would rather anticipate success—but planning for the possibility of the 'F' word can help you turn a perceived failure into a temporary setback. What percentage of new businesses is unsuccessful? According to the 2009 nationwide statistics from Industry Canada, 96 per cent of new businesses with less than 100 employees survive for at least one full year. Eighty-five per cent last for three years or longer, and 70 per cent are still around at the five-year mark. Nevertheless, until there is a way to guarantee success for your new business, every entrepreneur should keep this in mind: your attempt to start a business may not work. The reasons may be out of your control; but what you do if faced with a “failure” is up to you. If your idea bombs, begin by examining what went wrong. Was it a combination of factors, or one serious mistake? Should you have allowed yourself more preparation time before entering the market? Did you hire an untrustworthy right-hand employee? Did a similar business have better advertising? It may be difficult or even painful to appraise your mistakes (come on, at least a few of them were probably yours), but the sooner you do, the better you will be able to recall details which help you pinpoint what went wrong. Do another “examination” when a few months have passed and your perspective may have refined. The … [Read more...]

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If You Build It, Will they Buy It?

October 28, 2010 by Leave a Comment
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New business owners do a lot of work behind the scenes before they first open their doors to the public. If you are in charge of the operation, you must design the product or service so that it will appeal to your customers, set up the business and invest quite heavily, then reach out to potential customers and begin making sales. This can be an extended process and all of the upfront work is a lost cause if the last task—making sales—is unsuccessful. Securing your first few sales is one of the most crucial steps in the process of launching your business, but it can also be one of the most difficult. How can you find out if a consumer will buy—preferably, before putting a lot of your money into a business idea? Whether you are still in the testing stage or ready to begin courting customers, here are a few suggestions. 1.     Ask your friends Simply ask friends and acquaintances whether they would buy your product or service. These people who you already know are easy to reach and usually willing to test out whatever it is you are selling. Knowing whether your friends are being straightforward with you can be a challenge. They may want to avoid hurting your feelings, but this is a time where you need them to be brutally frank. Only use friends whom you can trust to be 100 per cent honest with you as testers. Try to get the opinions, as well, of some friends who are known to play the role of “devil’s advocate” in order to gain new insight on your … [Read more...]

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Two Types of Workers

March 29, 2010 by Leave a Comment
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In today’s workplace there are two types of workers: the employee and the professional. The employee is the individual who recognizes himself as someone hired to do a particular job for a particular salary. The professional sees herself as the person within the company who reliably performs to make a difference. The employee focuses on completing the task at hand and receiving compensation. The professional concentrates on how she tackles the job. Both types of workers experience very different results at the end of the day, mainly with regards to passion, motivation, perception and attitude. The individual who claims, “I am only an employee,” is passionate about arriving at work and completing the assigned task. He may feel increasingly motivated as it approaches payday because he perceives his role as doing a job for a salary. His attitude is to get the job done within the given time. On the other hand, the professional is driven by a passion to perform at a superior level by: • Taking pride in her work • Delivering the best service to both internal and external clients • Always seeking ways to improve • Helping colleagues excel at what they do • Being a great team player The professional is motivated by daily challenges, workplace changes and the desire to make a difference; motivating others along the way. She perceives herself as an important staff member who receives an opportunity each day to deliver nothing less than quality service, … [Read more...]

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10 Steps to Marketing on a Budget

January 17, 2010 by Leave a Comment
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If you talk to the head of any small- to medium-sized company, you’ll see that one of their key areas of concern is how to grow their business in these difficult economic times. Many believe that they need to allocate a large sum of their revenues to their marketing initiatives. While it is advantageous to have a large sum to spend on marketing, small businesses would be happy to know that there are many low-cost and no-cost ways of marketing their products and services to generate quality leads and prospects. It is now more important than ever for companies to do their research and think outside the box in order to market their products or services effectively and still maintain their bottom line. Below are some examples of what Small and Medium Enterprises (SME) can do to market their products and services creatively. Customer Referral Some of your biggest opportunities will come from customers that are already buying from you. Your customers already know your business and know what you have to offer and they can provide a personal referral to others -- prospective clients and customers. The calibre of your work is emphasized when they comment on the great service they received or how your product has been invaluable to them. Look for opportunities to ask for more business from them. They probably know someone who can use your product or service, and if you truly provide them with value already, they should be more than willing to recommend you – without you … [Read more...]

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