Canadian Small Business Women

Connection, Synergy, Community

ANXIETY IN NUMBERS

Many entrepreneurs don’t take the time to understand their numbers, in fact, most ignore them altogether!! They rely on their bank balance to tell them if they’re doing well or not and just get the bookkeeping done for the sake of taxes.  That may work for you, but how are you going to make informed decisions if you live in obliviousness of your numbers? They tell you the story of how your business is doing and can give you great insights into what’s working, and most importantly, what’s not!

Here are some of the top Key Performance Indicators (KPI’s) you should monitor for your business.

  1. Advertising as a Return on Investment (ROI)

We know advertising is necessary for business growth, brand development and awareness, and most importantly sales. But not all advertising channels work the same. In the beginning you may advertising anywhere that will have showcase you, but the key is to track which of these channels actually brings you clients. Try using a different promo code in each channel so that you can track which is working and get rid of the ones that aren’t.

  1. Inventory turnover

If you have a product based company where you buy the inventory upfront to try and resell it, then this KPI is vital for you. Inventory turnover is the number of times inventory is sold over a time period, which can be monthly, quarterly or annually. This will help you track what inventory is moving and what takes longer to sell. Accordingly you can adjust your buying choices and often your marketing choices too.

  1. Accounts Receivable turnover

This one is really important if you have repeat customers. These days many businesses operate on a “pay before you receive” model wherein the customer is paying for the product or service before it is delivered. However, many businesses still have the more traditional model of providing a service and then invoicing for the work completed, thus resulting in a period of time where you are waiting for a customer to pay. By keeping track of AR turnover you can identify whether your companies policy for credit is working as intended or whether you wish to continue to do services for clients who are perpetually late. A good accounting system will also allow you to review an AR aging to see which customer is always past due.

  1. Gross Margin

Again if you are in an inventory based business, you need to be aware of two factors: first you need to factor in the cost of inventory into all your sales and second you need to make sure you have enough of a markup to not only cover your inventory cost but your operating cost. Doing a gross margin analysis combined with a break even analysis will help you figure out if your pricing structure is working for you or not.

  1. Budget to actual

You’d be surprised how many entrepreneurs don’t have a budget, or if they do, they don’t compare their budget to actual numbers. A budget is not set in stone, of course, but knowing how your actual sales/expenses compared to what you were forecasting can tell you a lot about your business initiatives.

Of course the key to doing any of the above is timely and accurate bookkeeping and financial reporting!

 

“Behind Every Great Business is a Great Accountant”

For more information on how to keep your business tax efficient, or to get a consultation on whether you are making all the right tax choices for your business, contact Dharna CPA. www.dharnacpa.ca. Info@dharnacpa.ca

Nepotism – Does All In The Family Include The Workplace?

So, recently I was at a crowded cafe typing emails, quite literally rubbing elbows with two people sitting beside me. I heard one word that really caught my attention; a word that due to my profession was impossible to ignore … it was nepotism.

“They don’t respect me, Mom. I have no authority over them because I’m just the boss’ daughter. And you know what? Sometimes I think they’re right! How do I let them know I belong there not because of who you are but because of what I can do?”

“No one remembers how you got a chance, they only remember what you did with it.” ― Stewart Stafford

Green Nepotism Word Cloud

I gleaned that this daughter has been placed in a powerful position within her mother’s company. She feels isolated, uncomfortable and lacks confidence when it comes to those she manages. Her mother assured her that she has generated a broader demographic in terms of clientele, and has increased sales since being hired. Still, I could see the wincing doubt in the daughter’s face.

The mother continued, “Trust me, you were picked because I recognize how intelligent and determined you are. Why wouldn’t I place you as a supervisor? Who else could I entrust with this kind of responsibility? I know your moral character, I’ve watched you develop a strong work ethic, and most of all, I believe in your loyalty and ability to grow this business with me. You have a real investment in making my company a success. Why should you be ashamed of that?”

I sipped my green tea and smiled. This mother respects her daughter and it was encouraging to see two generations of professional women creating a fruitful business together. So, why couldn’t this daughter feel the pride reflected in her mother’s eyes?  For one, it’s evident that she is sensitive about the notion that other employees may be resentful of her, mainly because of the problematic nature of workplace nepotism. Anecdotally, most of us know where friends and family

have been treated favourably within a workplace because of their personal relationships with people of influence. With that said, it’s almost impossible to put a number to the prevalence of nepotism. The statistics and research are scant.

“Nepotism – We promote family values here almost as often as we promote family members” – Larry Kersten

Under most circumstances when a supervisor hires a loved one, the screening and/or interview process is usually non-existent if not overtly biased.  The loved one’s performance tends to be less scrutinized. Furthermore, it would be more difficult to demote or fire a relative over someone you’ve only known from a payroll sheet.  Yet, in that quaint café, I still leaned into that conversation feeling hopeful for this mother and daughter corporate duo. If the daughter truly is a competent worker, and one who genuinely cares about making a valuable contribution to those who she oversees, then doesn’t she deserve the opportunity to help her mother’s business?

My answer is yes, as long as it is practiced with objectivity and fairness.  For some context on what this fairness looks like, here’s some guidance. As with all details that pertain to employment law, contracts I recommend that you seek legal advice from a licensed professional.

Nepotism Example My Son's Office

Here are five things to consider before hiring a family member or close friend:

  1. How close are you to this person? Are you willing to dismiss them if their performance is poor? If the answer is no you are vulnerable to creating unfair, unequal work practices within your organization.
  2. How large is your staff? Is this a small family-owned business? If it’s a larger company would hiring relatives be seen as blatant favouritism?
  3. Is this family member or close friend educated or experienced in the field for which you are hiring? If not, the likelihood of their long-term commitment to the job is not promising.
  4. Have you been thorough and accurate with placing your existing staff in the right positions; have you exhausted their potential for future promotions?
  5. Contemplate how you will distinguish your work versus a personal relationship with this relative or close friend. If you feel this might negatively overlap from the professional realm into the private it may be wise to not fuse these two contexts.

    If you have HR or career-related matters that you’d like to discuss, please contact me by email, phone, or via direct message on Twitter, Facebook, or LinkedIn. I’m available if you’d like to discuss any of these topics in more detail.

    More than career coaching, it’s career psychology®.

    I/O Advisory Services – Building Resilient Careers.

Step by Step Guide to Getting Your Brand included in Gift Guides

You may not want to think about the holiday season quite yet, but with the introduction of Pumpkin Spice Lattes, you know it’s coming. That means you should be in holiday planning mode for your marketing strategy. What are you doing with your media relations? Being included in holiday gift guides can be a great thing for your business, but you need to do it right.

While you can take any approach and make it your own, here is a basic step by step guide to help you get your brand included in holiday gift guides.

Step 1: Plan your timing

Media outlets are in three general groupings when it comes to the lead time required. Lead time simply means how much time they need between when they decide to feature you to when the article gets published. The three groups are:

  • Long Lead: This usually includes magazines that are printed monthly or less. The lead time is generally 3 – 6 months in advance. If you do the math, you are already almost too late to hit up this group for their holiday gift guides if you want to see your brand in a print magazine. Keep in mind that a lot of publications are also shutting down their print publications and moving online exclusively.
  • Medium Lead: This includes publications that are printed weekly or every other week. They usually require 1 – 3 weeks lead time.
  • Short Lead: Short lead publications like daily newspapers, commuter papers, and online publications have a short turn around time. When it comes to gift guides, you can get away with pitching the same week, although giving more time is still advisable. They still have to work with an editorial team and an approvals process.

Step 2: Choose your featured product(s)

While you may love everything you sell, pitching too many products at once will get cluttered and confusing. Pick one to three products that you see as the best gifts to give. Ask yourself two questions:

  1. What type of gifts are they? (Eco-friendly, pampering, last-minute, stocking stuffers, under $20, etc)
  2. Who are they for? (For her, For him, your friend who has everything, the person who wants to save the world, etc.)

Get creative with your answers. It will help you make your products stand out more.

Once you have selected your featured products gather materials you may need for media. In particular, you will need high resolution product images. Your images should be on a white background. You can also have lifestyle shots as well, but the product images will be requested. In some cases, the publications will take their own pictures, but you should be prepared.

Step 3: Update your website

You don’t need a full overhaul of your website to get this type of campaign done, but you should make sure that your content and images are up to date, especially the pages with the featured products on them. If you are using the proper keywords on your site (ie. Eco-friendly, stocking stuffer, etc), there is also a good chance the media will find you if they are doing research for their gift guides (but you can’t rely on this hope, which is why you are creating a proactive outreach strategy!).

Step 4: Build your gift guide list

Create a list of at least 15 to 20 outlets that you want to target for your gift guide outreach. Indicate which ones are on the top of your wish list so you can give them extra attention if needed. Once you have your list, figure out the best person to reach out to. This requires a bit of internet digging or a media database like Cision to help you out. Larger publications will likely have a dedicated gift guide editor, otherwise it could be a section editor or a specific journalist.

After building your list of targets, look at their websites to see if they have an editorial calendar you can download. An editorial calendar is a planning tool for outlets. It lays out their topical publication schedule. Sometimes it is quite detailed and may give you insight into the types of products they are looking for for their gift guides.

You should also look at past gift guides to give you a sense of what types of products catch their eye and the language they use to showcase the products.

Step 5: Build your own buzz

The media likes to feature products that may already be getting some traction, so you should start pushing your product(s) out on social media more frequently. That way, when they see your pitch email, they can see some action happening and build on that momentum. Also keep in mind that the media does a lot of research on social media and they may come across your product without your pitch email if you are using the right hashtags.

Step 6: Pitch your product

Your pitch can make or break you regardless of how amazing your product is. To start, be specific with your subject line – not just that you have a great new product. Talk about a “great gift for a last-minute holiday gift guide” or “Eco-friendly gifts for your holiday gift guide.” Tailor your pitch emails and subject lines to each outlet to match the tone and topical focus for each audience.

In terms of your email, keep it short and stick to the benefits your product/service has rather than the features. Your email shouldn’t be longer than 4 short paragraphs at most (8 – 10 sentences). Utilize bullet points to help keep an easy reading flow (and to keep it short!). And make sure you include the price, where it can be purchases, and a link to your website.

Step 7: Follow up

You have three options here based on the response you get. If they said:

  1. Yes: Send samples, images requested, and any further information they need. Get it done as fast as possible (think same day!).
  2. No: Move on and don’t take it personally. Depending on the exchange, if you feel comfortable, you can ask for a reason (so you can learn for next time), otherwise, just cross them off your list.
  3. Nothing: Wait 3 to 5 days and send a follow up email. This is just a quick reminder, so keep it to one or two sentences long indicating you wanted to make sure they received your email and see if they were interested.

Step 8: Talk it up

You can get be included in 10 gift guides, but if you don’t make the most of the opportunity, you may not see the kind of return on your effort that you would like to see. Once the gift guide is published, it’s up to you to help spread the word and use it as an opportunity to build your own brand credibility. Some ideas are:

  • Put a link to the coverage on your website – create a “press” or “in the news” section
  • Share the link on social media – a lot
  • Scan a printed article and add the image to your website
  • Share the scanned image on social media

Doing gift guide outreach isn’t easy. It requires work and dedication to get it done, but it can help you increase your revenues and your overall brand visibility throughout the holiday season.

Candace Huntly is Founder and Partner at SongBird Marketing Communications, an award-winning agency working to take organizational and individual brands to the next level. With a passion for all things related to creativity and strategy, she specializes in business intelligence, marketing & branding, content strategy & development, media & influencer relations, and social media. Basically, if you need to put your brand, product, or cause in the public eye, she will find a way to do it, while making the approach unique to you.

Connect with Candace

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3 Reasons Why You Should Join a Nonprofit Board

“Join a nonprofit board” We’ve all seen this listed in someone’s LinkedIn Profile but just why is it so important?  Volunteering is a great way to make new connections and expand your network and being part of a board can provide you with valuable skills and experience. Unlike corporate boards which are notoriously difficult to join and often rely on private appointment of board members, nonprofits often recruit volunteer board members to help with governance related decisions. Here are 3 reasons why you should join a nonprofit board:

  1. Expand your network

Being on a board gives you the opportunity to meet and work with people from different professions and skills sets. It’s a great way to network with professionals outside of your specific field and workplace. Additionally being a board member usually means you have to represent the nonprofit at community and industry events which gives you more opportunities to network.

  1. Strengthen your leadership and project management skills

Board members are responsible for the governance of an organization. As a board member you are a decision maker. Volunteering on a board is a great way to strengthen your leadership skills, as you collaborate with fellow members on decisions such as budget increases and organizational expansions. You may also be tasked with your own portfolio of areas for which you are the point person, this is a great way to develop and strengthen your project management skills.

  1. Enhance your professional profile

Being a board member is certainly something that looks great on your resume, but serving on a board also helps enhance your professional profile. As a board member you have certain responsibilities and are held accountable for the good governance of the nonprofit. Board members are viewed as leaders. Serving on a board also allows you to align yourself professionally with a cause or platform so be careful which nonprofit you choose to volunteer with. A professional who is not only experienced and qualified but who also gives back to his/her community is something recruiters, professional organizations and corporate boards look for when seeking to fill a vacancy at an organization or on another board.

Praveeni Perera is an experienced entrepreneur having co-founded a training and consulting company catering to clients around the world. Her area of expertise is international expansions. You can connect with her via Twitter or LinkedIn

September 2017 Small Business Woman of the Month: Laura Bilotta

For over 15 years, Laura Bilotta has been helping singles find love through the thousands of events she has hosted and with the thousands of matchmaking consultations she has offered through her company, Single In The City. With this, Laura has garnered the title as one of Canada’s top Dating and Relationship Experts.

Her company Single In The City is a frontrunner in the matchmaking and speed dating industry. Her services are made for today’s daters and in fact, Laura and her team pride themselves on taking a hands-on approach to find their clients the best possible match. Single In The City has hosted speed-dating events for over 14 years across the GTA including Toronto, Mississauga, Burlington and Oakville, giving her clients an opportunity to meet other great singles. Single In The City currently boasts an 80% match rate, over 80,000 participants, and over 1700 events.
When Laura is not matching up singles through her events or matchmaking services, she is giving them advice through her weekly radio show on Talk AM 640. She also hosted the Single in the City talk show on Rogers TV for two seasons. The media frequently consults Laura on all matters related to dating and relationships. Her expertise can be found at Elite Daily, Bustle and Global News, as well as many other trusted news outlets and publications.
Due to her passion for helping singles in their quest for love, Laura has recently released her first book, Single in the City: From Hookups & Heartbreaks, to Love & Lifemates: Tales & Tips to Attract Your Perfect Match. Her book is available in-store at Chapters Indigo and at Amazon and Barnes & Noble. It has received rave reviews, including that from Sex and Relationship Expert, Jessica O’Reilly, who writes, “If you’re truly ready to push your comfort zone, be honest with yourself and invite love into your life, turn to Laura Bilotta and Single in the City.”
 
In addition to her book, she offers a free guide, Single in the City’s Guide to Surviving a Breakup and Laura also runs a blog on her website offering a range of dating tips.

 

To get in touch with Laura or to keep up-to-date:

www.singleinthecity.ca 

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Immigrant Women’s Small Business Expo returns to Toronto, September 17, 2017

 

In light of current undertones towards immigrants in Canada, the expo promotes peace, hope and success for all business women

 

Toronto…Now in its fifth year, the one-day, experiential Immigrant Women’s Small Business Expo (IWSM Expo) celebrates the aspirations and achievements of immigrant women, taking place in Toronto on Sunday, September 17th, at Daniels Spectrum. Under the theme “The Changing Face of the Immigrant Community,” IWSBE offers women an opportunity to get informed, empowered and enlightened, while providing access to business building services, networking opportunities and entrepreneur workshops.

Expos are a crucial factor in helping new businesses acquire the leads, networks, information and polish they need to succeed in the business world.

This is according to Dwania Peele, founder of Canadian Small Business Women (CSBW) and the IWSB expo who notes that women owned small and mid-sized businesses generate around $117 billion to the Canadian economy annually.

“We’ve always championed the fact that women matter, and we’ve sought to celebrate all the roles they fill in their family, career and community,” said Peele. “Immigrants, specifically, struggle in Canada’s labour market despite their many skills, and we are more than excited to be in Toronto with this rallying cry of support for immigrant women entrepreneurs across Ontario.”

Another advantage of a business-focused event is that it presents practically unlimited opportunities for information-sharing, says Peele. “We have found there is significant demand for practical advice and insights that help would-be immigrant entrepreneurs and small businesses to run their businesses effectively. Expos bring together stakeholders from across a niche spectrum and present an ideal platform for workshops, demonstrations and seminars that help participants grow their businesses.”

ISWB expo offers a rich experience with informative seminars and panel discussions presented by notable speakers including the Honorable Gagan Sikand, MP for Mississauga-Streetsville,  and entrepreneur Julie Suen, President and CEO of Chinese Canadian Voice. Throughout the day attendees can view educational exhibits and corporate displays from Canada Business Ontario and the Government of Canada. The seminars and workshops will be far ranging and engaging, featuring topics that impact women’s daily lives addressing such issues as health & wellness, marketing and social media tips, career advancement, business/entrepreneurship, the welfare of our children and much more. While IWSB expo targets immigrant women, there are elements for all women business owners.

In addition, ISWB expo offers ample opportunity for shopping and sampling from local artists and artisans showcasing their handmade wares at the Craftadian pavilion, formerly the Made by Hand Show.

 

IWSB expo offers a one-stop business platform to gather information, exchange ideas and network for anyone considering starting their own business, and for those already in business and looking to expand.

Admission runs for $5 / person including access to seminars, panel discussions and the handmade market.

What:                                   Immigrant Women’s Small Business Expo

 

Where: Daniels Spectrum, 585 Dundas St E, Toronto, ON M5A 2B7

When: Sunday, September 17, 9 a.m. – 5 p.m.

Cost: Admission: $5 (Under 16 years of age free)

Website: http://toronto.immigrantsmallbizexpo.ca

 Tickets: https://www.eventbrite.ca/e/immigrant-womens-small-business-expo-toronto-2017-tickets-31623796627

Starting Local and Deciding Whether to Go Global – Three Trademark Related Questions to Ask

As I find myself in both familiar and foreign territory visiting family overseas I have been appreciating the differences in the entrepreneurial rhythm of a different culture and society. Small business tends to dominate the economic fabric of most societies and in many places growing a small business beyond the local area it initially is set up to serve is just not be part of the plan. When there is a clear vision to serve a local customer base, a small business may have different branding and trademark priorities than a business that has an eye on growth and expansion beyond its local presence.

To tease out some of these differences and navigate the implications for developing a trademark strategy let’s focus on three questions: “Can I”, “Should I” and/or “When should I” take steps to adopt and register a trademark.

Implicit in this bundle of questions is the presumption that at some point consideration should be given to registering trademark(s). There are a multitude of good reasons for registering a distinctive trademark in order to support the branding of a business, locally focused, or not. Unless a business operates using generic or descriptive terms to make itself and its offerings known in the marketplace, often the issue is a question of timing and the prioritization of resources, and not so much if it is worth doing in the first place.

Using the food and beverage industry as an example, consider a customer’s dining experience at a hip restaurant in the trendiest part of town. If positive, the customer knows the experience depends on the chef and ambiance created on site. The name of the restaurant is a marker of where to go to get the desired experience. This is in contrast to when a customer likes a food or beverage product that has been scaled for distribution through multiple outlets. In this case, the trademark associated with the product is the one thing that can inspire confidence in consumers that they are getting what they are looking for from a reliable originating source. In both cases, the initial key legal concern is to avoid infringing on the marks of other food/beverage enterprises. Conducting a clearance search to address the “Can I” adopt and register a trademark question is the first investment needed before moving on to the “Should I” question, and/or to the “When should I” question.

If the “Can I” question is answered in the positive, going to the appropriate next question requires a deeper inquiry about whether to remain a locally focussed small business. Basically, any time that a small business owner turns their mind to developing product lines, franchising opportunities, or selling the business, the option to register trademark(s) should be visited, or revisited, as the case may be.

The “Should I” question of whether or not to register a trademark comes into play if the reputation and good will of your business is likely to develop primarily from customers associating their experience with the people and/or location representing the business, rather than a product that is being sold. Other examples of such businesses may be service-based enterprises (e.g. individual coaches and wellness providers), intermediate (B2B) supply chain distributors, and common commodity retailers (e.g. local convenience stores). Customers are attracted based on what they know about the experience interacting with personnel and/or the experience they have by accessing the business site. In these situations, when the customer has or can have more direct contact with the business owner, taking the step to register a trademark may not be as crucial.

In any event, the “Should I” question answered in the negative need rarely be a final decision. Within certain limits, this decision can become a decision to put off registering a trademark as part of a “When should I” inquiry. If after a risk assessment, putting off the registration of a trademark is the sound business decision to make, the ever changing commercial landscape is reason enough to periodically revisit that decision.  This can be done by monitoring the commercial landscape (e.g. through online searches) and the activity at relevant Trademark Offices. This allows small business owners the opportunity to have notice of marks being adopted by others and of applications to register confusingly similar marks. With notice, a small business owner can then take the necessary action, with the support of an experienced trademark professional, to address competitive threats through trademark registration, negotiation, or otherwise.

 

Ariadni Athanassiadis

Kyma Professional Corporation

T: 613-327-7245

E: ariadni@kymalaw.com

W: www.kymalaw.com

The Cash Flow Paradox

 

The number one concern most business owners have – especially in the beginning – is how to manage their cash flows. It’s not just about generating the sales – but getting those clients to pay. Pay on time. So you can pay your bills on time. And just because you aren’t getting paid doesn’t mean that your vendors will excuse your late payment. And so we find ourselves in this cash flow paradox of you need money to pay your bills, but what do you do when your clients just aren’t paying you?

The reality is cash flow ups and downs happen in any business and the excuse of your clients aren’t paying you does not bode well with most vendors. You need to be prepared for this and have a plan. The solution is a business line of credit.

For some reason most entrepreneurs do not want to get a business line of credit. Perhaps they’re afraid they’ll abuse the credit available or they need to personally guarantee it. But the fact of the matter is, you will inevitably need it at some point. Here are the two mistakes I see the most when it comes to borrowing money.

  1. Timing

Getting a line of credit can be a challenge for many business owners. If you’re a new business you don’t have enough credit established as a business and many banks will deny you unless you personally guarantee the loan. If you’re an established business, but have a lot of debts, you can also be denied the loan. Or If you’re an established business, the banks can question why you need a bank loan now when you’ve been in business for X years already. It can be a red flag to all of a sudden need to borrow money unless you have an expansion or specific tangible purpose.

Typically banks and creditors like to support clients in either the start-up phase or the expanding phase. So getting a line of credit established early on – even if you have to personally guarantee or put up some collateral – is advisable. You can support your business case by citing all the start-up costs that require immediate cash flow (website, advertising, space rental etc) and banks understand that in the beginning there will be more money out than in. Versus, needing money to just survive. The latter is a guaranteed loan denial. So ask for the line of credit application when you’re starting your business!  You don’t have to use it, but it’s easier to not use it when you have it, than be denied when you need it.

  1. Borrowing the wrong way.

Yes, there is a right and wrong way to borrow. The right way includes a nice tax write off! If you borrow money for business purposes, the interest you pay on that loan is TAX DEDUCTIBLE. Yay!

Often what I see happen is entrepreneurs put their SAVINGS in the business and then BORROW to fund their PERSONAL lives. Borrowing for personal purposes is NOT tax deductible. So only use your personal savings into the business if you have enough to cover your personal needs. Otherwise, see point 1 about getting a line of credit.

Note: even if you use your personal line of credit for business purposes the interest is still tax deductible. Either way, you need to be able to support the “business purpose” with a paper trail.

 

 

“Behind Every Great Business is a Great Accountant”

For more information on how to keep your business tax efficient, or to get a consultation on whether you are making all the right tax choices for your business, contact Dharna CPA. www.dharnacpa.ca. Info@dharnacpa.ca

Most business partnerships end in divorce. Here are the top 5 ways to beat the odds.

Done correctly, going into business with a partner can be a great way to grow quickly as each partner brings expertise or assets that the other party is missing but which are crucial for business success. Yet, according to some studies, 80% of business partnerships fail. When you consider that the failure of a business partnership can often lead to loss of valued relationships, financial struggles, lawsuits and even complete business failure, those are eye-wateringly bad odds.

So, how do you beat the odds?

 

Get on the same page

If you’re starting a business together, don’t jump straight into setting up the bank account and buying inventory. Spend a lot of time (I’m speaking about days if not weeks) mapping out what your business will look like. What are the business goals? Timelines? What is your vision for the business and what it will take to achieve this? What is the sacrifice plan? When will you increase your team and how? What is the exit plan?

Skipping this step can be disastrous. If you plan to build a large business with 10 locations across Canada and sell it to your largest competitor in 7 years for $10 million and your partner is content to stay small as long as she can make $72,000 a year from it, your business partnership is not going to work out and it’s best to know this before you invest your energy and money.

 

The Devil (and the Lawsuit) is in the details

The big picture is crucial but it will remain an unfulfilled mission statement on a wall somewhere if you don’t nail down the details.  Having a clear, detailed plan can often be the only thing that allows you to ride out changes in the market and in the emotional state of the partners. Before you get started:

  • Establish the objectives and expectations of each partner;
  • Determine each partner’s contribution in terms of funds, skill and time;
  • Complete an organizational chart, even if right now it will only contain two names- yours and your partner’s, and assign the jobs each partner will have. This is often the most difficult part as someone has to be the Managing Partner.
  • Form evaluation objectives and plan ways to monitor and assess performance;
  • Decide on a procedure to resolve problems when there is a serious issue e.g mediation or arbitration.

 

Map out Your Mutual Expectations in Writing

Now that you know where you want to go in your business and how you plan to get there, step back and think about the roadmap for the relationship between you and your partner. Before you visit a lawyer (more on that later), you and your partner(s) should take the time to draft your version of a partnership agreement. This will save on legal fees as it will allow you to experiment with different structures and solutions on your own, get a clearer idea of what you need to address and distinguish business issues from legal issues. The more work you have done before stepping into your lawyer’s office, the more useful and less expensive your agreement will be.

 

Get Professional Advice Early On

I know you wouldn’t start a partnership without legal advice! A business lawyer who has helped form partnerships before can help you assess your draft agreement and determine how realistic and beneficial your wish list is. She can also help develop your negotiation strategy including determining what you should ask for and when.

You should also have a consultation with an accountant who will be able to give you advice on how to make a budget, manage revenue and minimize tax liability.

 

Trust Your Instincts

A wise person once said- “Always trust your gut. It knows what your head hasn’t yet figured out.”  Sometimes, a partnership looks great on paper but something just doesn’t add up.

A former client had the opportunity to join a business started by a husband and wife team which had strong financials and an expanding client base but in her meetings with the husband, she just always felt uneasy. Still, she thought she was being unduly sensitive and decided to go ahead with the partnership on the expectation that she could do really well financially. It turned out to be a disaster. The husband was a manipulative creep who consistently undermined my former client and then tried to force her out of the business without compensation. During that period, every time I spoke with her she expressed how upset she was, not so much with the partner, but with herself for ignoring her gut.

So, by now you’re probably thinking that you need to have a long chat with your partner but you’re wondering how to raise the subject without causing a rift. I’ll discuss that next month.

 

 

Andrea Henry

Vox Law LLP

The Law Firm Built With Love for Small Business™

T: 416.639.6235

E: andrea@voxlaw.ca

W: http://www.voxlaw.ca

Sign up to receive legal tips I don’t share anywhere else and a must-have checklist for Canadian small businesses at  The Secure Startup.

This article is made available by Andrea Henry of Vox Law LLP for educational purposes only and not to provide specific legal advice. By reading this article you acknowledge that there is no solicitor-client relationship between you and Andrea Henry and/or Vox Law LLP. The article should not be used as a substitute for competent legal advice from a licensed lawyer.

Don’t Sell To Every Franchisee Who Can Pay – Consider A Franchisee Assessment

Over the past six to 12 months, I have worked with a number of franchise owners who plan to sell franchises. In all cases, they had sold franchises in the past and had seen mixed results. Sometimes it had worked out. Other times, not so much. This time, all of them wanted to make sure that they sold to someone who was likely to succeed. They all recognized the risks associated with selling to the wrong franchisee, but did they do a franchisee assessment?

For the franchisee, one thing is clear. There’s a real turn-key value of buying a franchise compared to starting a business from scratch. As a franchisee you’re buying into a tried-and-tested business model and the related systems that should help the business run smoothly. Despite all of this helpful infrastructure, a franchisee’s success is never a “given.” In the wrong hands, a viable business can easily become a failed business. Sadly, when a franchisee fails, it reflects poorly on the whole brand.

Use a Franchisee Assessment to Improve Success

Many experienced franchisers have learned that it’s riskier to sell a franchise than it is to hire an employee. Here are some reasons why:

    • It is harder to “manage” a problematic and independent franchisee, there is often less room for oversight
    • A franchisee will probably have much more visibility and influence than an employee. If/when things go poorly, it’s often more public.
    • If you think severance pay is expensive/inconvenient, try getting rid of a franchisee
    • Just like employees, some franchisees just don’t fit with the culture or don’t understand the full responsibilities of business ownership.

Risk Management For Franchisers

So what’s an aspiring franchiser to do? How can they increase their odds of selling a franchise to someone who is likely to succeed? One easy and effective option is to do a Basic Franchisee Assessment. Here’s how it works:

Basic Franchisee Assessment

  • Potential franchisee answers some questions online
  • I/O Advisory Services prepares a short report based on the online assessment. This report will identify potential red flags (and/or notable strengths) that should be considered prior to selling to the potential franchisee
  • Awareness of these red flags may suggest that these issues should be probed during meetings/interviews that take place before the sale of the franchise (see Enhanced Franchisee Assessment)

Sometimes, the Basic Franchisee Assessment Report raises concerns that warrant a closer look. In these situations, I recommend that these concerns are addressed during meetings or interviews with the aspiring franchisee. A wise way to prepare for these meetings or interviews is to do an Enhanced Franchisee Assessment. Specifically, this includes:

Enhanced Franchisee Assessment

  • Prepare interview questions to confirm or refute the red flags or issues of concern that were raised during the basic assessment
  • Propose coaching and/or training to support the franchisee so that they can succeed in their role as a business owner and leader
Franchisee Working Well

As your (franchise) business grows, I/O Advisory Services can provide you with occasional Human Resources (HR) support. This is much more cost-effective than having someone play this role on a full-time basis when the need is temporary and periodic. I will help you identify the appropriate profile of hard and soft skills that your future employees should posses. Then, I can create interview questions that will help you tell the difference between job applicants who can say the right things during an interview versus job applicants who can actually deliver once they’ve been

hired. I’ll also help you make sure that your reference checks yield worthwhile insights, rather than being a meaningless formality.

Note – In July 2016, I reconnected with Ms. Erin Hamilton, the founder of MOGL Small Business Services. MOGL connects Ottawa businesses with MBA-level business talent on an on-call basis. My conversation with Erin about the work I’ve been doing with owners of franchises inspired this blog post.

Contact me by email, phone, or via direct message on Twitter, Facebook, or LinkedIn if you’d like to discuss any of these services in more detail.

Contact Helen

More than career coaching, it’s career psychology®.

I/O Advisory Services – Building Resilient Careers.

To Blog or Not To Blog?

Do you blog for business? Many businesses feel that blogging isn’t worth the time it takes to draft articles and post them on the website. I get it. Blogging can be time consuming. It is even worse if you have writer’s block. That being said, writing a blog for your business can have extremely positive effects on your success.

Here are four things that should convince you that writing a blog is in your best interest.

#1: Establish yourself as the go-to expert

Your customers want to know that you know what you are doing. Writing a blog is a great way to showcase your knowledge in a customer-accessible way. The more useful content you produce, the more your community of customers and prospects will turn to you for questions and purchases.

In reality, you have competitors who will likely also have a blog. To set yourself apart from them, figure out how to differentiate your content from theirs. Sometimes it even comes down to the style of writing that draws in your readers from your competitors.

While you will focus on your area of expertise, you need to keep your blog topically fresh so you aren’t recycling the same tired subject over and over. Sitting down with a colleague or even just a pen and paper and doing some brainstorming will help you come up with a number of great ideas and fresh perspectives. A steady stream of well-written content showcasing your expertise will help you build authority and trust.

#2: Increased website traffic

Your customers won’t keep revisiting your website unless you give them a reason to. Creating well-informed, engaging content also gives your audience something to share that links back to your website. This can expose your business to new audiences through direct website traffic. Time to make sure your website is up to date and effective!

#3: Increased opportunity for calls-to-action

Each blog post should include at least one call-to-action. A call-to-action simply asks your reader to do something. While your reader may be interested in the topic you have written about, they may not think about what to do with it once they are done reading. Your call-to-action is the nudge they will need to step in the right direction. Here are a few examples:

  • Share this blog on Twitter!
  • Contact us to find out how you can set up a great business blog!
  • Sign up to receive tips and tricks from us

#4: Connect people to your brand

Blogging is your chance to showcase your brand personality using more than 140 characters. You should already have figured out your brand voice and your blog is a great opportunity to put it into play. How your write – the tone, the language, the subject matter – all says something about who you are as a brand. Using your brand voice in this way allows you to humanize your brand even more by creating strong community connections, building relationships based on your brand personality, vision, and ethics.

Candace Huntly is Founder and Partner at SongBird Marketing Communications, an award-winning agency working to take organizational and individual brands to the next level. With a passion for all things related to creativity and strategy, she specializes in business intelligence, marketing & branding, content strategy & development, media & influencer relations, and social media. Basically, if you need to put your brand, product, or cause in the public eye, she will find a way to do it, while making the approach unique to you.

Connect with Candace

Facebook/Twitter/LinkedIn/email/Website

Tips to Save on your Energy Bill when you work from home

Written by Canadian Small Business Women on behalf of our sponsor, Just Energy.

 

Households and small businesses in Ontario pay time-of-use prices for electricity that change according to the TIME OF DAY and DAY OF THE WEEK. The peak periods also change by SEASON. What this means though, is that households have to pay attention to the on-peak and off-peak schedule for Electricity rates and schedule their appliance use in the home around this schedule. For those of us who work from home, this means that we are often using the majority of the electricity in our house during on-peak hours.

Follow these tips to reduce your energy usage and save money:

  1. Upgrade to energy efficient appliances. Since 1992, the US Environmental Protection Agency initiative, Energy Star, has reviewed and rated energy efficiency in appliances, products and companies. Look for the blue star on new appliances to ensure that you are purchasing energy efficient appliances. Old home appliances that should be upgraded include heaters, hot water tanks, dishwashers and laundry machines.
  2. Use energy efficient light bulbs. LED light bulbs use up to 90% less energy and last 15-25 times longer than standard bulbs, meaning they need to be replaced less often.
  3. Reduce heating and cooling costs by using proper insulation, and using blackout or heat absorbing curtains on the windows.
  4. Unplug electronic devices that are not in use. All electronic devices will still consume electricity when they are turned off. Unplugging devices that are not in use, or using power bars that can be turned off will prevent your electronics from over-using electricity. Unplugging laptops and mobile devices that have already reached full charge will also help save their batteries by not over-charging.
  5. Compare electricity and natural gas costs with companies other than your local utility.

Just Energy now offers “My Time”, a unique electricity product which provides you with a single rate, no matter what time of day. Furthermore, with My Time the price you pay for your electricity will always be lower than mid-peak and on-peak rates.

Switching from your local utility to Just Energy ensures a hassle-free and cost-effective way to manage your home’s energy usage. Please call your Trusted Energy Advisor at 416.937.5090 for more details about this offer. Alternatively, visit justenergydeals.com/csbw to learn more and sign up today on more offers.

Just Energy is a proud sponsor of Canadian Small Business Women. Talk to a Just Energy representative at one of our upcoming events. Sign up today to win a Just Energy Office Package at NorthSpace in North York. Offer lasts until 23rd August*

How to get Clients to Pay On-Time

Let’s start off by admitting that as much as we love what we do, as small business owners, we do this to make money.

Let’s also admit that we have clients who have not really grasped this concept and who Just. Don’t. Pay. Us. On-time- or at all.

How do you deal with it? As always, prevention is better than cure. Here are my top three tips to getting paid on time.

 

  1. Get it in writing.

Relying on verbal agreements and handshakes is for amateurs, and you my friend, are a professional with bills to pay. State your fees and payment terms in writing so that you avoid misunderstandings about payment expectations. Your written contract should also include, at a minimum, a Scope of Work Clause which is a very clear, very specific description of exactly what you are going to provide to the client and a Cancellation Clause which will tell your client if and when they can cancel and what, if anything, they will still owe you after cancellation.

 

  1. Make it super convenient and easy to pay you

In your initial meetings, ask the client what works best for them in terms of timing of invoices, credit terms and payment type. Instead of just accepting cash and cheque, consider accepting credit and debit cards, online payments, direct deposits and email transfers. Paypal, Square, Quickbooks and Freshbooks are just a few companies which allow you to send invoices that clients can pay with just a few clicks.

You remain in control of the decision but by involving the client in the process and by being flexible in response to her needs, you make it more likely that the client will pay you on time.

 

  1. Create a structured, well-thought-out procedure for collections

Even with the most rock-solid contract and convenient invoicing systems, you’ll still occasionally have to deal with a client who doesn’t pay on time. When creating your collections system, think about:

  • How often you will remind your client to pay the invoice eg. every week, every month, every quarter and for how long will you send those reminders
  • Whether to add interest to the outstanding amount after a certain number of days have passed (pro tip- you should add interest because it acts as a deterrent to long delays in payment)
  • What escalation will you use if the client still doesn’t pay- eg. send the matter to a collections agency, retain a business lawyer or take the client to small claims court
  • How important is the client to you- using a collection agency or starting a court action often leads to a permanent breakdown in the relationship.

The first time you ask a client to sign a contract or you send out a collections letter may be nerve-wracking. But remember, while you might be new to this entrepreneurship thing, you definitely are not new to the service or product you are providing.

By insisting on a signed agreement and a collections policy that protects your ability to get paid, you signal to the world that you take your business seriously. When you take yourself seriously, guess what? Your clients take you seriously and serious people get paid.

 

Andrea Henry

Vox Law LLP

The Law Firm Built With Love for Small Business™

T: 416.639.6235

E: andrea@voxlaw.ca

W: http://www.voxlaw.ca

Sign up to receive legal tips I don’t share anywhere else and a must-have checklist for Canadian small businesses at  The Secure Startup.

This article is made available by Andrea Henry of Vox Law LLP for educational purposes only and not to provide specific legal advice. By reading this article you acknowledge that there is no solicitor-client relationship between you and Andrea Henry and/or Vox Law LLP. The article should not be used as a substitute for competent legal advice from a licensed lawyer.

Time Get Real

Okay, we’re halfway through 2017. It’s time to get real because there are goals that you set for yourself at the start of the year and now’s a good time to check on the progress you’ve made. I know that there were probably some rough patches and things you wish you had done better. The question is, what are you going to do differently in the second half to get the results you want?

It’s time to be as honest with yourself as possible. What habits are working for you and which ones are working against you? Most of us don’t have to think too hard to figure out the answers. Knowing what we need to change is one thing. Doing something about it is a completely different matter.

We face a similar challenge when it comes to the way we do things in our business. We need to take time out to analyze what’s working and what isn’t working. If you’re spending a lot of time on things in your business and not getting the results you want, then it is time to rethink the strategy. Either you need to hire out for the things that aren’t in your wheelhouse, or you need to take a course to gain the skills and knowledge to do those things in an effective and efficient way!

I know that tracking our progress is something that many of us avoid. We’d rather not face the reality that we’re not on track to reach our goals. If you’re fearful to take a look at your progress, you already have an idea that you’re not where you want to be. The opposite could be true as well though; you could be closer to realizing your goals than you think. You’ll never know for sure until you take the time to see where you really are.

Even if you realize that you’re not as close as you wanted to be to achieving your goals, the good news is that there’s still time! You have 5 months and a couple of weeks to make significant things happen. All you need is clarity on the vision, focus on the things you need to do to get you there and a willingness to take daily action to get you there.

What you have or haven’t accomplished in the last six months doesn’t have to determine your success in the second half of 2017. You can do anything you put your mind to! What are you choosing to focus on accomplishing in the next 5 months? I look forward to celebrating your successes in December, as we head into a new year get ready to see what else is possible!

 

 

Sandra Dawes is a certified life coach specializing in helping women who feel unfulfilled with their 9-5 follow their dreams and pursue their passions. She holds an Honours BA, an MBA as well as a certificate in Dispute Resolution. She has completed her first book,Embrace Your Destiny: 12 Steps to Living the Life You Deserve!

Connect:

www.embraceyourdestiny.ca

www.facebook.com/embraceyourdestiny

www.facebook.com/embraceyourdestinythebook

www.twitter.com/sandradawes

 

What Do HR And Psychology Have To Do With Cyber Threats?

Where is the Real Threat?

In the internet world festooned with apps we know it’s important to use strong passwords to secure our own email, social media accounts, and electronic devices. On the corporate side, another important consideration is the role that humans play in cyber threats. People with access to big data, personal information, intellectual property (IP), and critical infrastructure (e.g., power supplies, water treatment, hospitals, railways) can sometimes be the weak link in the chain.

HR as Part of Risk Management

For a while, I’ve been thinking about cyber crimes and cyber security and how to adapt what I learned and applied when I worked in a very secure (Top Secret) environment. In that workplace, we were extremely careful about how people were hired. Also important was how they were treated after being hired. I call my adaptation of those processes and policies “HR as Part of Risk Management.” I’ll admit that this may not be a stylish title but it does address something that most approaches to risk management are missing.

Employees: Often the Weakest Link 

Ominous Dark Buildings

Traditionally, risk management includes “human factors” but to date, relatively little attention has been paid to this source of risk. Normally, 90% of our collective efforts have focused on technical or IT-related interventions to protect us from cyber threats. Yes, these are important. However, to focus on them and not address the human element, psychology or employees’ behaviour is like locking the

front door but leaving the back door open. The fact is that sometimes security breaches reported as cyber attacks are caused by actions that take place inside the organization. As Dermot Williams, the CEO of  IT security firm Threatscape says, “when it comes to organizations, often the employees who are the weakest link.”

Although I have a lot more to say on this topic, for now, I’ll share an article that I wrote called Is Cyber Security Alone Ever Enough?, published in FrontLine Security in October 2016. Take a few minutes and read.

In the meantime, if you have HR or career-related matters that you’d like to discuss, please contact me by email, phone, or via direct message on Twitter, Facebook, or LinkedIn if you’d like to discuss any of these topics in more detail.

More than career coaching, it’s career psychology®.

I/O Advisory Services – Building Resilient Careers.

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