Archive for February, 2010

Hiring your first employee can be one of your company’s most nerve-racking and exhilarating milestones. It’s gratifying to know your hard work is paying off and that success and growth mean you’re ready to bring on help. But hiring can be stressful too if you’re unsure of the best way to gauge who’s right for the job and what legal steps you need to take.

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Marketing consultant and blogger, David Lavenda, offers some helpful do’s and don’ts  to consider before you make your first hire:

  • Don’t try to build a dream team – at least not yet. Right now, you don’t need strong egos, you need partners with talent and drive.
  • Don’t just hire people like yourself. Diversity can help you understand your company’s weaknesses and areas for opportunity.
  • Don’t be afraid to hire people with more experience or expertise than you. Hire people who fill in the gaps and make up for your weaknesses.
  • Don’t hire too many people with big company backgrounds. People who work for small businesses understand there are certain sacrifices that go with the job. You don’t want prima donnas who only fly first class or need a lot of support staff to work efficiently.
  • Do hire people who are comfortable working in a small business environment but who won’t be fish out of water when your company grows.
  • Do hire people who think differently. Lavenda says: “Groupthink and suppression of dissension are two great ‘company killers.’”
  • Do hire employees who thrive in an environment of uncertainty. Your business will experience lots of ups and downs. You want a team that can go the distance.
  • Do hire passionate people and do reward them. People who work for small companies understand their dedication can really make a difference and they’re usually willing to go the extra mile – as long as they feel appreciated and compensated for it. Don’t abuse their goodwill.

Entrepreneur.com offers some more great tips on hiring your first employee.

And you’ll want to check out bizlaunch.ca’s helpful information before you hire – from opening an employer account with the federal government to paying your employees.

Have you already hired your first employee or are you in the process? We’d love to hear your stories.

Brought to you by tax analysts from the QuickTax Business Incorporated and Unincorporated team

A penny saved is a penny earned, as they say. “They” must have been a small business owner, because any time you can reduce costs, you improve your bottom line. When it comes to tax time, finding all your allowable deductions will help get back every penny you deserve.

Whether you are carrying on a business personally (ie. self-employment) or through a corporation, one of the most cost-effective ways to save taxes is to use a strategy called income splitting. The term ‘income splitting’ refers to a process of splitting income amongst family members (ie. spouse and/or children) to achieve a lower overall tax burden by reallocating income to be taxed in their hands.

If your spouse and/or children work for you in your business, you can achieve income splitting simply by paying them salaries. Salaries paid to them from your business are tax deductible as long as the amounts are reasonable and that the employment services are genuine. So, what’s considered a reasonable amount of salary for your spouse or children? Well, a simple question would be to ask yourself how much you would pay a third party dealing at arm’s length for the same employment services rendered.

Here are some of the pros and cons of income splitting by paying salaries to your spouse and/or children:

Pros

  • Lower overall tax burden by utilizing the lower tax rates that the spouse/children have relative to you / your business
  • Creation of earned income for future RRSP contributions for family members
  • Taking advantage of spouse’s and children’s personal tax credits which otherwise would not have been utilized by them in their own tax returns

Cons

  • Need to withhold and remit payroll taxes for the salaries paid to your spouse and children
  • Need to file additional T4 slips (Statement of Remuneration Paid) for your spouse and children
  • May lose some personal tax credits including spouse or common-law partner amount

As with any tax-saving strategy, careful consideration and planning should be given to achieve the best desired effect and to avoid any negative tax consequences. Income splitting can be complex and may require assistance from a tax professional. However, if done properly, this is an inexpensive way to help you get back every penny you deserve.

Tax tips brought to you by tax analysts from the QuickTax Business Incorporated and Unincorporated team

By Donna Marrin

Here are the last of six tips that you can use to attract customer loyalty to your business:

clip_image0024. Speaking of free stuff—who doesn’t love free stuff? When you offer free stuff to your customers, your gesture immediately stirs feelings of goodwill and a sense of genuine appreciation for their patronage. What have you been doing to maximize your relationship with your customers, without receiving any monetary payment in return? Again this doesn’t have to be costly. How special do you feel when somebody remembers to mail you a card on your birthday? Your customers will also feel special when they open their mailboxes to find anniversary or birthday or any other celebratory card from you, every year, no strings attached.

Do you maintain a current database of email addresses? If so, use them to circulate useful bulletins filled with helpful tips or trivia—keep them simple, short, and interesting.

Send your best customers, and potential customers, small trial samples of new products or special coupon offers. Send out invitations to a “Customer Appreciation” afternoon, and supply refreshments. There are countless ways to thank your customers for their patronage without having to invest a fortune.

5. Never be afraid to try something a little different, or to take a small, calculated risk. Today’s technology has turned burning a CD or DVD into a simple, inexpensive process. Design a great looking presentation about your product or service and burn it onto disks that can be distributed to prospective customers. Add video clips of testimonials from your best customers. Package it creatively.

Decorate a company vehicle in crazy, eye-catching advertising and park it in a variety of high-traffic areas. When curious people approach to take a look, chat them up while handing out coupons or brochures that will inspire them to want to learn more about your business.

Never underestimate the power of fun. Hold a wacky contest for customers. A carpet company that offers a “Do you have the ugliest carpet in Toronto?” contest will attract attention. Entrants emailing their ugliest carpet photos are eligible to win a Grand Prize, perhaps a large discount on new carpeting with free installation. Upload all entries in your database and update these potential customers with contest results to keep your business top of mind.

clip_image004I’ll never forget reading about the owner of a gas station who trained his friendly old bandana-wearing golden retriever to retrieve payment and deliver change between the customers and the cash desk. People from all over the county admitted to driving out of the way just to buy gas from this particular station, as well as making trips to top up with gas even when it wasn’t necessary, just to be able to interact with this unique animal. Wouldn’t you know it—it’s the only gas station in that area that has never experienced a lull in traffic. Sheer genius. And it costs the owner nothing more than kibble.

6. Make it so easy and so convenient for your customers to use your products or services, they will view your business as a benefit that improves their quality of life. Be sure that any interaction between you and your customers will be the most pleasant of experiences in their already harried day. Make them feel that they will always be on the receiving end of your personal attention because they are genuinely special to you. Believe it or not, superior customer service is far more important to most people than saving a few bucks.

Give an example of the best customer service you have ever received.

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

By Donna Marrin

Use the first of six tips to attract customer loyalty to your business:

1. Get to know everything you can possibly learn about your customers. What are their likes? What are their dislikes? What are their major concerns and how can your products or services resolve them? Ask your customers to participate in helping you make your existing products or services better, as well as developing new ideas. People are happy to purchase goods touched by their contributions.

People like to feel needed. People like to be asked their opinions and they like to talk about themselves. The talk-show industry would have been history a long time ago if this wasn’t so. By asking your customers for input, you are letting them know that you really care what they think and at the same time, you are harnessing a great deal of market research—free. Making your customers feel valued enough to be involved in your business decisions buys you instant brand recognition and loyalty. In return, they will be happy to “spread the word” to friends and associates. You get a domino effect called “viral marketing”—there’s no better way to advertise without having to invest a dime!

clip_image002_thumb.jpgNeed an inventive way of harvesting customer feedback? Try creating your own “Customer Advisory Board.” Plan round-table lunch meetings on a quarterly basis (stick to no more than three or four meetings per year). Choose four or five of your best customers and invite them to become members of “the panel.” Find out what their issues are. Ask them to list all the ways in which your products or services help them solve their issues. What do they need to help improve current solutions? What are you doing that you should continue to do? What should you discontinue? What haven’t you done that you should start doing? When your panel provides the answers, work hard to give them what they want. You can bet that whatever these four or five customers want will mirror the rest of your target market. Replace your customer panel every year with new people to receive fresh ideas. The feedback that you get will be invaluable.

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2. People love a good story. Especially when it’s interesting and informative, even better when no strings are attached. Design a monthly or quarterly newsletter—it doesn’t have to be fancy—and fill it with interesting news and tips that relate to your products or services. Make it information-based, purely for the interest of your customers, but incorporate a section near the end to focus on your company details. Once in a while, include a coupon or an offer that would appeal to them. It doesn’t have to be costly: “Come by on Saturday, May 3rd and share a cup of coffee with us! Balloons for the kids!” The simplest things are often every bit as pleasing to customers.

3. Do your research and do it constantly. Study your competitors. What can you do for your customers that your competitors aren’t doing? What steps have you taken to make your target audience aware of this? If you run a landscaping business, is there one more thing you can do for your customers that not one other landscaper has offered to do? Perhaps the gift of a free window-box container of flowers, fully installed, at the beginning of the season, to every customer?

Make the effort to go one mile further than everyone else. It will be appreciated and remembered.

Visit tomorrow for Part IV of this four-part series, where I’ll share the last of six valuable tips for winning customers and influencing loyalty.

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

By Donna Marrin

clip_image002As illustrated in Dale Carnegie’s Winning Friends and Influencing People, and Robert Fulghum’s All I Really Need To Know, I Learned In Kindergarten, there is a basic formula for dealing with people that guarantees positive results: the degree of effort we invest in relationship-building with potential customers dictates the degree of loyalty they will return. One plus two equals three. The formula comprises one part basic psychology and one part common sense, yet relationship-building is one of the first areas to be neglected when we become consumed with the many other levels of multi-tasking required for running a business.

So many business owners forget the fact that making a sale is a bonus, not the ultimate reward—if you look at the big picture. Winning customer loyalty by ensuring they will want to deal exclusively with your business is a victory well worth capturing.

Consider your own experiences as a customer in the marketplace. What will convince you to choose one particular supplier over all the other similar suppliers out there? When a new competitor appears with a better offer, what action has your favored supplier taken to establish your loyalty? What past examples of customer service have driven you to sing praises about a particular business to your friends and associates?

Think back to those businesses that stand out positively in your mind. What did they do that made them shine?

The methods that these businesses used to attract and capture your interest are the same techniques that you can use to attract customers to your business services or products and engage their loyalty for the long haul.

Human nature is such that all people desire courteous, genuine customer service that works hard to accommodate their needs when and where they decide to spend their hard-earned money. Studies have shown that people are even willing to pay more for a product or service in return for white-glove treatment. Every human being has a need to feel special.

Be creative in your presentation to your customers. Try to think of ideas that your competitors haven’t considered. What unique approaches can you come up with that will make your customers feel truly good about spending their money on your services or products?

Visit tomorrow for Part III of this four-part series, where I’ll share the first of six valuable tips for winning customers and influencing loyalty.

 

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

By Donna Marrin

I’ll never forget the customer service I received from a realtor named George. Although I had no intention of selling my home, I had decided to seek a market value appraisal to find out if my home was holding its own in the current marketplace. I randomly selected George’s name from a real estate ad in my local newspaper.

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Years of dealing with businesses operating high on greed and low on customer appreciation had turned me into a cynical consumer. The idea of “getting something for nothing” just didn’t exist; a price was always attached. Although I was keen on getting my appraisal, I wasn’t looking forward to meeting George. I suspected I’d be subjected to predatory sales tactics along with a mailbox deluged with junk mail imploring me to sell my house for weeks afterward.

George appeared at my door on time, offering a warm smile and a firm handshake. He answered all of my questions patiently and provided the thorough appraisal I had hoped for. As he was leaving, he handed me his business card, with no pressure pitch. A couple of weeks passed before I realized I’d received no junk mail listing all the houses he’d sold in my area. Another week later, I opened my mailbox to find an envelope from George. “Aha! Here we go!” I thought. As I removed the contents of the envelope, my jaw dropped to my knees. Inside was a hand-written greeting from George, along with a pair of complimentary tickets to the Toronto National Home Show. The note said simply, “It was a pleasure to meet you. I thought you and your husband might enjoy using these passes next weekend. Sincerely, George.”

I was shocked. I’d just received something for nothing. Suddenly, George was the best real estate agent I’d ever dealt with. My husband and I did use the tickets and we had a splendid time. I told quite a few people about this fabulous real-estate agent named George, along with the name of his agency. Guess whose name will be the first to enter my mind when I decide to sell my house?

George is a brilliant example of how to win customers and influence loyalty.

Every single customer is a VIP!

As illustrated in Dale Carnegie’s Winning Friends and Influencing People, and Robert Fulghum’s All I Really Need To Know, I Learned In Kindergarten, there is a basic formula for dealing with people that guarantees positive results…

Visit tomorrow for Part II of this four-part series.

 

Donna Marrin is a freelance Senior Writer/Editor specializing in corporate communications and advertising. She also founded and runs the Markham Village Writers. You can visit their website at www.markhamvillagewriters.com

Willingly, or thanks to the recession, more than two-million Canadians are now self-employed according to Statistics Canada, making this category of employment the fastest growing in the country.

To give small businesses a tax break and boost the economy, the federal government announced in last year’s budget a huge 100% capital cost write-off on computers and related software and peripherals purchased between January 27, 2009 and February, 2011. (In the past and after the program ends, capital cost allowances for computers will return to the declining-balance rate in which you deduct the cost of your business computers by a smaller percentage each year. Additional details about the new program are here.)

The tax deduction is timely news if you need to invest in technology and it’s a great way to reduce your company’s taxable income – but you can only take advantage of it until next February, so stop by your neighbourhood STAPLES or visit online to ramp up on computer purchases you may have put off until now.

There are more smart ways to save your company money.

Remember, it’s a great idea to consult an accountant about other deductions available to you. For example, if you work where you live, you can deduct the expenses in that part of your home in full (50% in Quebec) on utilities, property taxes, home insurance, mortgage interest and condo fees or rent.

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According to Stephen Thompson, in 167 Tax Tips for Canadian Small Business 2009, you can even increase your mortgage to help finance your business startup.

“That portion of the mortgage interest that relates to the business is a business expense which you can deduct, regardless of whether or not your business is profitable.”

Know of any other smart ways to save more for your small business?

By: Sandy Salmon

When you start thinking about advertising your business and building your brand – be it product or service-based – you have to know what it is about your business that makes people keep coming back. What do you stand for? If you don’t know, I have to wonder how you’ve made it this far. But, let’s say you’re just not very self aware – start asking your customers. They’ll probably be only too happy to tell you. Then, once you know what makes you a GREAT business – sell it in every piece of communication that leaves your office – be it a business card, letterhead, invoice or e-mail! And then make sure you live that promise in everything you do.

If you don’t deliver on your promise, you’ll lose a customer. Remember it’s not unlike the things your mama told you – don’t try to be something you’re not – people can spot a phony a mile away. Okay maybe mama didn’t say it quite that way – but I think you catch my drift.

So what are the 5 Easy Steps to Start Building Your Brand:

1. Know what you stand for! If you don’t know, do some research – even if it’s just one-on-one conversations with your 20 Best Customers. Feeling a little shy, why not hold a contest. It’s simple – make up a little ballot for a chance to win ‘”one of your services or products’ and ask the question, ‘You keep coming to me because ‘fill in the blank’’.

2.Take the top 3-5 things your business brings to the table and brainstorm – you don’t need a high-price agency to come up with a tag line. Let’s say your customers come back with ‘quick’, ‘good value’, ‘great/fun personality’. And you’re a plumber. Leaks stopped quick – no ifs, ands or plumber’s butt! See – it’s easy and can be a lot of fun!

3. Hire a freelance designer to create a logo! Can’t afford one – approach a Graphics Design School to see if you can hire a student, or better yet, you might just get it for FREE if you offer up printed samples and an endorsement for the kid’s portfolio!

4. Put your new logo on everything!

5. Live your brand – and ensure that everyone you hire does too!

Have a GREAT tagline you’d like to share? We’d like to hear it – how about telling us how you came up with it and how you live it every day!

 

Sandy Salmon is the Director of Advertising for STAPLES Canada. Sandy has been with STAPLES for over 15 years and brings extensive brand experience. Previously Sandy has worked at CFTR/680 News and Saffer Advertising.

For all our daily dependence on email and new social media tools, most people would agree there’s little that’s as effective as a face-to-face meeting to build relationships and close a sale.

 But, whether it’s flying or driving to a client meeting or assembling your far-flung team for a collaborative afternoon brainstorm jam, for many businesses – especially small ones – the time and expense required can be prohibitive.

clip_image002With travel budgets – and for that matter, all budgets – slashed, a growing number of vendors have made it their mission to design videoconferencing tools that offer real-time collaboration, file distribution, session recording and other features more accessible and affordable than ever.

Al Sacco at CIO.com has 7 quick tips for evaluating your videoconferencing system needs. While these tips are aimed at larger businesses, entrepreneurs can gain a lot by asking themselves these same questions:

1. Know how you’ll use a videoconferencing system: Who will use it? How many locations will you want to connect with? Will the system provide one-on-one communication or simultaneous multi-party communicating?

2. Know where you’ll use it: Will it be installed in a dedicated videoconference room or different meeting areas? Do you have a sound system? Will you need one?

3. Know how much you’re willing to invest: A videoconferencing system can be pricey. Estimate how much money you’ll save over the long term – in time, travel and other expenses. Is there a clear return on investment?

4. Create your list of vendors: Ask for a test-drive and make sure you evaluate the system’s reliability, audio/video quality, ease of use and how the system integrates with any system you currently have.

For web-based video conference software and application tools aimed at small businesses, Amarendra Bhushan offers an exhaustive list of applications that can help with online presentations or impromptu tête-à-têtes.

And David Byrd has put together 10 great tips to help you conduct video conferencing more smoothly and effectively.

How effective has videoconferencing been for you? What tips can you share?

By Rachel Swiednicki

Family Day is a relatively new holiday in Ontario – the first one was celebrated in 2008 after the Liberals were elected. Along with Ontario, Alberta, Saskatchewan and Manitoba are the only other provinces in Canada celebrating Family Day in February.j0438460

The new holiday caused some upset with small business owners, as a new holiday meant a day off work for employees along with possible revenue loss; this confused some business owners about how to pay their employees for this holiday.

Take a hint from the title and spend some time with those who are important to you – it will show in your work—you’ll be happier, thus more productive. Whether spending time with your children, spouse, or your furry four-legged friends, Family Day is a great excuse to help beat the winter blah’s while doing something nice for yourself.

For more background about this public holiday and how employees should be compensated, visit here.

For Related articles click here.

 

Rachel Swiednicki is a professional communicator, with ten years of experience in the communications industry. Eight of those years were spent as a journalist before moving into a career in public relations/corporate communications.