Archive for the ‘Getting Started’ Category

Is “risk management” killing our productivity?

By Elaine Mah

I found myself wondering this week if our conservative Canadian approach to managing risk will have a negative impact on future productivity—and, ultimately, innovation—when I read a recent report from Deloitte Canada http://www.theglobeandmail.com/report-on-business/economy/canadians-score-lower-on-risk-tolerance/article2060767/ .

The report by Deloitte found that Canadian business leaders are not planning to invest in the types of activities required to improve productivity. “Our study substantiates—for the first time—that it’s true, not a hypothesis, that Canadians are indeed more risk-averse than Americans, despite our current positive economic climate,” said Bill Currie, Deloitte Canada’s vice-chair and America’s managing director of consulting.

Deloitte’s report comes on the heels of Stats Canada’s announcement http://www.bnn.ca/News/2011/6/10/First-quarter-productivity-up-04-below-forecast.aspx that Canadian productivity numbers, while up a little, were half the increase we were expecting. That’s not good news, considering our economy has been doing well.

The report identifies five key issues driving Canada’s productivity woes:
· chronic under-investment in machinery and equipment
· sheltering of the Canadian economy
· increasing competition for human capital
· inefficient and insufficient support for innovation
· lack of risk capital for start-up companies.

Many of these issues not only hamper productivity, but also limit our ability to innovate. And, let’s face it, it’s often SMBs that lead innovation; if there’s no support—financial or otherwise—it’s hard for them to make strides.

Let’s look at a company like PackSmart http://www.intel.com/Assets/PDF/general/Pack-Smart_CaseStudy.pdf. They use technology to build more effective machines to make packaging for the products we use every day. While the cost of the machines can be high, return is significant for the business. But if those same businesses can’t get financing to purchase new equipment, they lose out on that opportunity not only to innovate, but also to boost productivity gains.

To be competitive, we need to collectively open ourselves up to new ideas, new opportunities and new markets, while finding new ways to increase productivity, whether through technology and better collaboration or sharing of data (more on this in a later post).

As Deloitte’s report says:  We’re at a crossroads. Let’s choose the path to innovation.

What do you think? Do we need to give ourselves more credit? Are we more risk tolerant than we think and will that risk aversion hurt our innovation over the longer term?

ELAINE MAH joined Intel Canada in 2005 as Canadian Business Marketing Manager. She is responsible for Intel’s brand management, product positioning, product launch management and marketing research, as well as sales and integrated marketing communications, advertising and promotional campaigns designed to reach Canadian business customers. Prior to assuming this position, Elaine was Vice President at Sharpe Blackmore Euro RSCG, where she was responsible for planning and strategy on accounts including Direct Energy, Volvo, and Yahoo!, along with new business development. A marketing professional for over 20 years, Elaine received her Bachelor of Commerce degree from the University of Alberta.

Posted by Ashley in Getting Started, Growing Your Biz on February 3rd, 2012

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Is Franchising For You?

From the Canadian Franchising Association

With a mix of entrepreneurial opportunity and a tried-and-true formula for success, the franchise business model is an opportunity for people looking to be in business for themselves, but not by themselves.

When you think about a franchise, which well-known brands immediately come to mind: McDonald’s, KFC, or Subway, perhaps? “A lot of people think of franchising as ‘fast food,’” says Lorraine McLachlan, Canadian Franchise Association (CFA) president and CEO. “What most people don’t realize is that franchises can be found in nearly every industry, from quick service restaurants to automotive, education and retail, just to name a few.”

That’s because the franchise business model lends itself well to virtually any business sector. In franchising, the company that owns the brand (called the Franchisor) licenses its brand, product or services and way of doing business to an investor/business owner (called the Franchisee.) In return, the Franchisee provides a share of his or her income back to the franchisor. “Any business that can be exactly replicated in multiple locations can be a franchise,” McLachlan says.

There’s a wealth of franchises operating in Canada. A look at the CFA online member directory shows hundreds of franchise brands in a wide variety of categories. According to the CFA, there are an estimated 1,200 franchise systems and around 78,000 franchised locations across Canada.

Before you sign on to become a franchisee, you’ve got to do your homework. There are two things you need to assess: yourself and the franchise systems.

Knowing yourself and what motivates you is the first step to finding a great franchise fit. Think about how and where you’d like to operate your business and which industries or business sectors are most interesting to you. Look at your skills, talents and preferences and assess your financial situation.

Next, investigate the franchise brands that fit with your lifestyle and interests. Use all the research tools at your disposal, including franchise publications, websites and tradeshows. Speak with people from the franchise’s head office and talk to existing franchisees to get first-hand views on what it’s like to be a franchisee with their system.

As you research your options, what signs of a successful franchise system should you look for? “The success of a franchise system can be influenced by a number of factors,” says McLachlan, “so you will want to explore all aspects of the company as part of a proper due diligence process.”

Ask if the system is a CFA member. Members adhere to the Association’s Code of Ethics, which outlines ethical best practices for, among other things, disclosure of financial records and projections. The franchisor should provide you with full and accurate written disclosure about the franchise system in a timely fashion.

Look at the core of the franchise system concept: the products or services offered. The concept should be unique and differentiated from competitors, with a clearly defined market. There must also be consistency from location to location, an important hallmark of the franchise business model.

Ask how they select franchisees to operate their locations. “Just as you are investigating a system, the franchisor should be conducting their own due diligence about potential franchisees. They should be keen on ensuring any relationship entered into will be mutually beneficial,” McLachlan says. Beware if you feel hurried or pressured into a decision – a good franchise system will want to take the time to be certain that signing a franchise agreement would be in both parties’ best interests.

Consider the level of support, training and communication offered to the franchise system’s franchisees. You should receive information about this from the franchisor, but a great way to find out more is to speak with some of the system’s current franchisees. Ask them about what their initial and ongoing support and training entailed and their satisfaction with the amount of communication they have with head office. This can give you a clearer idea of what you can expect should you join the system.

Before signing on the dotted line, the more you can investigate and evaluate a franchise opportunity, the better, says McLachlan. “When you invest in a franchise, yes, you’re investing in a concept that has been developed and tested, but making an informed decision is a vital first step in realizing your franchise goals.”

For more information and to start your search, visit www.cfa.ca.

About the Canadian Franchise Association

With almost 500 corporate members nation-wide, representing many of Canada’s best-known brands, the Canadian Franchise Association is the national voice of franchising in Canada and works with all levels of government to develop industry-made solutions. CFA promotes excellence in franchising and educates Canadians about franchising, specific franchise opportunities and proper due diligence through its website (www.cfa.ca), programs, publications and events including The Franchise Show in Toronto, Vancouver and Montreal.

 

Posted by Ashley in Getting Started on January 25th, 2012

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Get your idea or invention to market

By Nicole d’Entremont

You have a great idea or invention. You’re convinced there’s a demand for it—or that it might even become a big seller. Problem is, like many entrepreneurs and inventors, you lack the experience or the means to get your product to market.

You’re not alone. Countless great business ideas or inventions never take flight simply because the persons behind them don’t have the financial, operational or human resources to turn their idea into a marketable reality. If you’re short on cash, experience or resources, consider product licensing. Instead of manufacturing and marketing your product yourself, you can license it to a company in Canada or internationally.

Licensing is a good way to minimize costs while maximizing market potential. The following five steps will guide you through the process:

1. Protect your intellectual property – Before licensing your product, you must protect your intellectual property rights with a patent (or patent-pending). A patent gives you the right to exclude others from making, using or selling your invention in Canada. For more information, visit the Canadian Intellectual Property Office at www.cipo.ic.gc.ca.

2. Prepare a product portfolio – The product portfolio is your opportunity to showcase your product to potential licensees. It should clearly detail your idea or invention, how it works and why its market potential is so strong. The package should contain a letter of introduction, along with the following: product pictures or drawings, detailed description, product variations, benefits, manufacturing information, market research findings, and pricing.

3. Get the word out about your product – Let others know you have a product to license. Cast your net as widely as possible by tapping into your professional networks and the following resources: licensing consultants, publications, websites and events; Canadian Trade Commissioners in Canada and abroad (see www.tradecommissioner.gc.ca); provincial trade offices and agencies; trade directories of domestic and global manufacturers; universities with research facilities; Chambers of Commerce in Canada and internationally; banks with international operations; and trade associations and publications.

4. Seek legal advice and support – As the licensor, you are expected to provide a legal agreement that sets out the conditions, rights and responsibilities for both parties.  A lawyer will work with you to draw up the agreement and negotiate a range of issues, including: what is being licensed, exclusive rights, territories covered, payment for patents, liability and provisions for termination of the agreement.

5. Determine a royalty rate for your product – There is no standard approach for determining your royalty rate. In fact, the rate you manage to negotiate will depend on a number of factors, such as whether the product is already patented, its level of market-readiness, and your own track record with producing successful products. Typically, royalty rates range from 3% to 8% of net sales. Each licensing agreement is unique and what you get is entirely dependent on your ability to negotiate a deal that benefits both you and the licensee.

Article by Nicole d’Entremont, small business owner. More information is available at www.CanadaBusiness.ca or by calling 1-888-576-4444 (TTY 1-800-457-8466).

Posted by Ashley in Getting Started on January 4th, 2012

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What you need to know about starting your own business

By Soulla Lindo

So you’ve decided you want to be your own boss. You want to set your own schedule, you want to call the shots and you definitely want to reap the rewards of your efforts. You’ve already got the basics covered:

Great idea: check.
Business plan: check.
Market research: check.
Competitive analysis: check.
Business registration: check.
Office supplies: check.

But before you go any further, here’s what you really need to know about starting your own business—the details that people never tell you.

Starting a business is a lot like getting married. In order for it to be successful, it requires love, commitment, effort, sacrifice and boatloads of patience. You’ll likely experience the honeymoon period when you start your own business—it’s new and exciting, with endless possibilities. But when the honeymoon phase is over and reality sets in, you need to be prepared for the dedication it takes to make it successful. You’ll learn as you go, and you’ll certainly make mistakes, but if you’re really committed (and adaptable), you’ll grow along with your business to become a solid partnership.

It’s staggering to think that approximately 50 percent of new businesses fail within the first year, while roughly 90 percent fail within the first five years. But the truth hurts. People are often not prepared financially to make the leap into entrepreneurship and haven’t prepared ahead with enough of a cushion to fall back on. Don’t expect to make a profit in your first year, or even your first three years, for that matter. Don’t get me wrong, many new businesses do make a profit from the onset, but you shouldn’t go in with that mindset because you will likely be disappointed. Make sure you’re comfortable enough financially before you start, in order to put in a good solid effort.

Stay motivated during the slow times. Undoubtedly, your new business will experience ups and downs. Don’t get discouraged. Instead, use that time to grow your business and your network contacts. Engage in social media, attend conferences, and plan coffee meetings with your mentors and networks. Essentially, do what you can to get the word out about your business.

And finally, if I can offer one more important piece of advice, don’t start a business because you need something to do. Don’t do it because you’re unhappy with your current job. Don’t do it for the money. Do it because you’re passionate about it. It’s the only reason that will keep you going during the hard times.

Being your own boss definitely has its advantages, but being prepared before you take the plunge can help make all the difference. Good luck!

Soulla Lindo is a communications manager, small business owner and blogger. She has worked in a variety of internal communications, public relations and website management functions. Soulla is a graduate of the University of Western Ontario and holds a Corporate Communications Graduate Certificate from Seneca College. Her favourite office supply is the Post-it Note—which she couldn’t live without.

Posted by Ashley in Getting Started on November 23rd, 2011

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Is the world ready for your product?

By Nicole d’Entremont

You have a product that is selling well in Canada and you’re thinking about next steps. The obvious choice? Exporting. Makes sense, but you need to know if there’s a market for your product outside of Canada. You may be ready to take on the world, but is the world ready for you? Here’s how to find out:

Start small: The best way to go global is to stay focused. While your website allows you to throw your doors open to the world, your exporting efforts should begin on a smaller scale. Experts recommend that you focus your energy on no more than one or two countries at a time. This approach makes your venture easier to manage and ensures your strategy is customized to fit your chosen market(s), giving you a greater chance of success.

Examine potential markets: Before you narrow down a list of countries, examine your options. Collect information and statistics related to your sector’s product exports to other countries. Next, identify five to ten large and fast-growing markets. Look at their performance over the past three to five years. Has market growth been consistent year-to-year? Consider smaller emerging markets where there are fewer competitors and your chances of gaining a foothold are strong.

Assess the markets: Now that you’ve done your initial research, target the most promising markets for further analysis. Examine trends that could influence demand for your product. Take a look at the overall consumption of products like yours, and figure out how much is imported. Now identify some of the specific factors that might affect your approach in the market, including distribution channels, cultural differences and business practices. Look into trade barriers and Canadian restrictions, such as export controls. On the plus side, there may be Canadian or foreign government incentives to support your venture.

Make a decision: It’s time to ask some serious questions as you shorten your list to the top one or two markets:
- How big is the market and what is the local spending power?
- Who are your potential customers and what do they want?
- Is the competition well-established?
- What product adjustments are required to meet the needs and priorities of local consumers? How much will it cost?
In other words, look at your markets critically to determine your opportunity for success. Analysing the information you’ve gathered will help you choose your target market(s), and will guide the development of your export plan and marketing strategy.
Start networking: Create a list of vendors, suppliers and potential customers in your chosen market(s). Local on-the-ground contacts are crucial. Connect with the Canadian Trade Commissioner Service (www.tradecommissioner.gc.ca) to establish contacts, network and obtain market-specific advice. Keep a detailed contact list and manage it well. Remember that every single person on that list can give you access to networks of people who may want or need your product.

The success of your export venture depends on you. By choosing your market(s) wisely and considering local likes and needs in your marketing and product development efforts, you’ll be well on your way to becoming a global entrepreneur.

Article by Nicole d’Entremont, small business owner. More information is available at www.CanadaBusiness.ca or by calling 1-888-576-4444 (TTY 1-800-457-8466).

Posted by Ashley in Getting Started on October 7th, 2011

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Finding the perfect computer for your small business with Intel

How do you make the perfect choice for your small business? Computer manufacturers and Intel have come together to produce technology that meets the demanding needs of your business. This video will give you the information you need to make the perfect purchase.

Posted by Ashley in Getting Started on September 21st, 2011

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A Work of Art-isano’s

By Randy Cooray

Wouldn’t it be great if you were the creator of a successful company or restaurant? To have your company logo so recognizable it can be considered as one the world’s most identifiable brands?

To spearhead a successful business is not an exact science, but requires a demand from the public, a strong management team and don’t forget the most important of them all… lady luck! Those who work in or own a small business could face a number of scenarios while in operation – failure, success as a single company or expansion within a particular region or broader.

Artisano’s Bakery Cafe has five locations in Greater Toronto which features concepts both from the fast-food variety and the more traditional sit-down concepts. Such elements for Artisano’s include real dining as opposed to paper and plastic options, a myriad of freshly made food – not to mention soft seating, a more relaxed environment (with fireplace), Wi-Fi capabilities and more.  This concept (referred as a quick-casual dining concept) was seen as an emerging possibility while in its development phases.

 “At that time (mid-2000’s), there was an emerging market for the ‘quick-casual’ business,” says Michael Simeone, Director and Part-Owner of Artisano’s Bakery Cafe. “We noticed there is a fairly huge market gap between the two (in Canada), and when we travelled around the United States, we noticed there is a lot of quick-casual concepts that we really liked. We thought it met a strong consumer need of wanting to eat more wholesome food in a more casual, relaxing environment.”

After retiring from the travel business along with his brother Joe, Simeone wanted to keep the entrepreneurial juices flowing. The pair joined forces with two additional partners, which resulted in a large financial investment into an industry Michael was not familiar with.

“These are big stores – and not cheap to build.  When you open your doors you wonder, ‘are people going to come?’ says Simeone. “We felt really good about our concept, about our food and our store design – and if we delivered it in a nice environment then we would have a winner on our hands.”

After opening their doors in April 2006, Artisano’s opened an additional three corporate locations, but recently unveiled their first franchise in North East Toronto. To date, the eatery is enjoying positive reviews with the possibility of additional growth. Simeone remembers his restaurant as a simple idea but believes his path to success is a formula for all business owners to practice.

“There are a number of factors, but if you have a clear and concise concept that fills a meaningful gap in the marketplace, if you have the passion and also provide a positive experience for customers and employees is a terrific start,” says Simeone. “A small business owner must be prepared to work long and hard to bring their business idea to market and you can’t give up in spite of obstacles. Immerse yourself in the industry you are going into, and most of all… have fun!”

To learn more about Artisano’s log on to: www.artisanobakery.com.

 

Randy Cooray has been on both sides of the media spectrum working in the Public Relations field after five years in Journalism. From one-on-one interviews with professional athletes, to collaborating on breaking news stories. Randy is now a part of the corporate communications industry.

Posted by Jameel in Getting Started, Growing Your Biz, Small Business Spotlight on April 8th, 2011

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Birthing a Business

By Linda Lord

It takes approximately 16 days of gestation before a hamster is ready to enter the world; 60 days  (depending on the bread) for a dog, 336 days for a horse, 280 for a human baby, and 624 days for an Indian elephant; but how long does it take to prepare a business to enter the marketplace? Just as times are only approximations for mammals, there is no one answer for birthing a business either. There are some things that have to be considered, and handled, before opening a business and based on my years of working with small business owners and entrepreneurs, the more successful ones take the time to gestate their business concept. For those of you who have been running your businesses for a long time, I encourage you to reflect on these questions as a review to ensure that you are still on course.

Start with a clear understanding of what you expect from your business. Is it intended to be a second income; a source of vacation funding, or your retirement plan? Will it be an expression of your God-given talents or simply a way to make money? You may choose to answer these questions alone, or in consultation with the members of your life, as they will be affected by your decision to start a business. I always encourage my clients to communicate the journey they are on with their spouses. Many people who start businesses do so after they have worked for someone else and have brought home regular paycheques. Both they and their spouses believe the start-up business will make money right away. Some businesses are profitable immediately; but many more are not. Starting a business is difficult enough without the additional hazard of a spouse who has very different expectations of the business than you do.

With answers to the above considerations, you are able to determine the best model for your business. Do you want to work full-time hours, part-time, or only a few hours a month? Do you want to be home when the children leave for school and when they get home each day? Do you want to work from a home office? Do you want it to be a ‘bricks and mortar’ business or online? Do you want to work alone or with others?

First consider the home-based business model. Technology has made home-based businesses competitive and a legitimate player in the marketplace. They are generally less risky and have lower start-up costs. The downside can be that working from home comes with a lot of distractions and greater demand on your ability to self-discipline. ‘Brick and mortar’ businesses are the traditional model with a physical location outside of your home, offering retail, wholesale, manufacturing, or services to your customers. The advantages are that a physical location provides the increased opportunity for face-to-face contact with walk-in traffic. The downside is the full-time commitment of leases, equipment, inventory and personnel. There is also the e-commerce model. This model depends heavily on ‘web-foot’ traffic. The upside is your market is the world and the downside is your market is the world. An e-commerce business has to be able to attract the right people, have the right products and services, and be able to process payments from around the world. Of course, you may choose to go the franchise route, which allows you to buy someone else’s proven business processes. You pay for these upfront and usually pay a portion of revenues. The upside is that you have support and samples to use that are already successful. You usually have an established brand and the success rates tend to be higher. The downside is the initial investment and franchise guidelines. You may also consider network marketing ventures that ask you to sell their products. Usually start-up costs are low. The downside is that many people do not realize the financial outcomes they originally sought.

The next step is to develop, or review, your business plan. There are many resources on the Web to assist in this process, but the major topics to include are: Business Description including a Mission Statement, Market Analysis, Marketing and Distribution, Personnel, Financials and Exit Strategy. Additional pieces may be necessary if you are requesting a loan or financing. It has been amazing to me, the number of existing businesses operating without a plan of any sort, and only during the recent economic crisis did the owners see the merit in having one.

Combine your talents with your business plan to generate SMART goals and a solid action plan. At some point, you will know it is time to birth your business. Just as no one has to tell a woman when she’s in labour, you will come to the point when the planning is done and the next step must be taken to become the parent of a new business.

I use this analogy knowingly. I am a business owner, too. I birthed my business 14 years ago in May. Infant businesses are just as dependent upon the owner as a new baby is on his/her parent. You will spend hours nurturing and growing your business. You will make choices in the first few months and years to support its development. You will grow to care about its health. And like a child, the business will enter other life stages and your role will change. Like parenting, enjoy each phase of being a business owner, because although it can be exhausting, it is also a very rewarding experience.

About Linda Lord As a Human Agriculturalist and Storytiller: Linda produces presentations that grow people. She fertilizes the performance ground with H.O.P.E. (honesty, optimism, perspective, and experience) and plants seeds of L.I.F.E. (laughter, information, focus, and encouragement) that cultivate the individual’s ability to C.O.P.E. (clarify, organize, plan, and engage). Linda integrates meaningful content with her experience as a workshop leader, business person, and performer. Her delivery is dynamic, interactive, and entertaining. Participants reflect on character, circumstances and choices to enhance their soft skills. Linda can be contacted on Facebook, LinkedIn, Twitter, www.lindajlord.com or by phone 1.519.257.7363.

Posted by Lynnette in Getting Started on February 2nd, 2011

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An interview with Rick Spence, president of Canadian Entrepreneur Communications & Business Columnist for The National Post

By Donna Marrin

Rick Spence

Rick Spence

I have a great idea brewing for a start-up. How do I overcome those doubts hovering in the periphery?

Many entrepreneurs are in such a hurry to launch their business that they skip important steps. Long before you open your doors to begin serving customers, you should be fine-tuning your product development and market-research work to make sure your product or service is the best it can be, and that it’s truly what your target market is willing to buy.

One of the best ways to eliminate doubts and make sure you’re on the right track is to take a leaf from high-tech companies and do beta-testing with potential prospects. Let people try out your product or service for free. Let them work with it, discover its uses, and identify the “bugs” or flaws that might have escaped your notice. Use these prospects’ feedback to create a better product for your market’s needs.

There’s nothing more important than engaging with potential customers early in the startup process, to learn what their actual needs are, what kind of solutions they’re really looking for, and how much they are prepared to pay for them.

How do I need to prepare before I approach a bank with my idea?

Very carefully. Understand first that very few banks are interested in financing startups; their margin on commercial loans is too small for them to tolerate much risk. Understand too that banks lend against assets, not against ideas, dreams or profit projections that may never come true.

No matter how flashy your business plan might be, your banker will lend to you only if you personally are a good credit risk. That means that you need a solid credit history – pay your bills and credit card balances on time! – and assets (such as a house with a small mortgage) that are worth lending against.

You can prepare by being able to demonstrate to the bank that you can read a financial statement, that you understand the importance of break-even, and that you are prepared for the daily drama of cash flow. But if you really want to impress your banker, demonstrate that you (and preferably friends and family as well) have believed enough in your business idea to invest substantially in it already. If you and your closest loved ones aren’t willing to take a risk in your business, why should the bank?

I’m about to launch my business. Are there ways of advertising to the general public without incurring huge fees?

You don’t have to spend a fortune to get your message out (although it would help). Make sure you narrow your marketing focus to reach only the target market you’re after. If you’re just advertising to affluent professionals, for instance, or you’ve opened a retail store on the west end of town, it makes no sense to buy a newspaper ad that reaches the whole city.

Look at these seven alternatives to blowing your budget on the mass media:

· Put up ads or posters in selected areas that will reach your target market.

· Target free or low-cost digital media such as Craigslist, eBay, or pay-per-click advertising (e.g., Google’s Adwords)

· Create eye-catching promotions (sales, contests, discounts, etc.) that will attract customers and encourage word-of-mouth publicity (the best kind you can have);

· Consider sponsorships or creating your own events that will put you face to face with your best prospects (e.g., if you’re targeting executives, get involved with a golf event)

· Get out and meet potential customers through appropriate networking events

· Use LinkedIn to snuggle closer to specific decision-makers

· Encourage referrals by offering a discount or other incentive to people who recommend your services to other customers

Can you suggest some actions I can take to help me better learn and understand the needs of my target market?

Great question! This is your most important challenge in business. There are numerous market-research techniques you can use: customer surveys, interviews, focus groups, statistical research, geographic market analysis, etc. The important thing is to find the technique that best fits your budget and your market sector. Best place to start: ask your local public librarian for the best sources of date on your market. Best free research you can do: grab a clipboard and go to where your customers are. Ask them about their experience with products or services like yours, what problems they have, and what benefits or inducements would make them seek out a new supplier.

My day is busy enough as it is. How important is it for me to devote time to exploring social media?

If you are a natural writer or communicator, you can make friends fast through new channels such as Facebook, blogging, Twitter or YouTube. But if you’re a busy entrepreneur who would rather meet clients and customers face to face, social media may not be a first priority. Do yourself a favor: explore Facebook. Figure out what you think it’s good for, and what your prospects might expect from a Facebook “page” (or mini-site) for your business. Then think through whether you have the time and talent to create new business-related content that would engage customers and prospects and help build stronger relationships. Statistics show that more and more people every day (300-million on Facebook alone) are relying on social media for news, relationships and all kinds of decision-making. But unless you have access to good content and marketing skills, you may find social media a lot of fuss over nothing.

Are there a few key strategies I can use to take my business from good to fantastic?

1. Create more value than anyone else in your sector. Whether it’s through lower prices, better quality, faster service, or higher-quality customer experiences.

2. Know your customers. Understand their frustrations and unvoiced wants. Anticipate their changing needs so you stay ahead of the competition.

3. Treat your employees like customers; they too are the foundation of your business. Communicate with them all the time so they understand what they need to focus on today. Align their goals with that of the business – profit-sharing is just one way to do that.

4. Look for partners whose talents complement your own. Two people with matching skills (e.g., one is the marketing/sales whiz, while the other is more detailed-oriented) can take a business much farther than one person with one set of skills.

What is the most common learning curve that small businesses tend to encounter?

There are so many! Running your own business is one of the toughest challenges anyone can face. I know very smart business people who have succeeded in big corporations, and then failed miserably in their own business – often high-tailing it back to big business, where they have so many more resources and are expected to demonstrate a much narrower skill set. You must understand book-keeping and cash flow. If you don’t master the details of operations, money will run through your fingers like water. You must understand marketing. And you must learn to work with all kinds of people, including employees, customers, and suppliers, to build trust and create lasting, win-win relationships.

Is there a really great entrepreneurial quote you’ve read lately?

“Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.” William C. Durant, Founder of General Motors and Chevrolet.

What is the one piece of advice you would like to share with others thinking about starting a business?

Always be ethical. You want everyone you meet to go away feeling pleased to have done business with you, rather than regretting it. More than ever before, today’s web-based world puts your reputation on public display, for everyone to discover.

RICK SPENCE is president of Canadian Entrepreneur Communications and an expert in entrepreneurship and business growth. He writes a national column for the weekly Entrepreneur section of the National Post and is the former editor and publisher of PROFIT, The Magazine for Canadian Entrepreneurs. He speaks widely on business trends, marketing, social media and business growth. He can be reached at rick@rickspence.ca, or through his blog, Canadian Entrepreneur.

Posted by Lynnette in Getting Started on September 13th, 2010

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Is a franchise the answer to your independence?

Buying a franchise can be a smart way to open your own business without many of the pitfalls that come with starting from scratch. Successful franchises – Tim Hortons and Canadian Tire are two of the most well-known – offer you the independence of running your own business day-to-day while benefitting from:

· The franchisor’s recognized brand

· The franchisor’s established business system

· The power that comes from the franchisor being able to buy for a large group of franchisees.

Of course, there is a price tag associated with these benefits, including an initial franchise fee – which can sometimes be pricey – as well as regular contributions for advertising and media buying.

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Vancouver-based franchise lawyer, Tony Wilson offers some tips if you’re considering buying a franchise as a way to start a business:

1. It’s not your brand: You’re not really buying but rather renting or leasing the franchisor’s name and know-how for the period of the agreement. If you walk away from the business in the future, all rights revert to the franchisor.

2. Due diligence: Just as you might speak to the neighbours before you buy a house, contact other franchisees in the system you’re considering buying into and ask if they’re satisfied, if they’re making money and if they would do it again.

3. Check the numbers: Carefully read all financial and other information from the franchisor and be sure to speak to your lawyer. Remember, these documents, even if they’re completely legitimate, are written for the franchisor’s benefit.

4. Don’t keep it in the family: Limit your exposure by avoiding entering an agreement where both you and your spouse have to guarantee the contract. It will only mean both of you can be sued if the business fails.

5. Follow your passion: Find a franchise that’s challenging, exciting and that you think you’ll enjoy being a part of.

You’ll find some fantastic franchising resources at inc.com, click here for a useful checklist of questions you should ask before buying a franchise and remember to visit the Canadian Franchise Association too.

Posted by Lynnette in Getting Started on August 30th, 2010

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