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Oct 18 2017

Why Start-ups Should NOT focus on Cash Flows

 

The first thing I usually hear when a new client comes on board, especially a new client in the start-up phase, is “I want to work on my cash flow statement”. And while I am happy to help create one, there is an inherent road block in a start-up focusing on cash flow – you have no idea where your sales are coming from!

For some reason cash flow seems to be the creditor favourite for lending. In lieu of historical financial statements for start-ups, they’ll often ask for cash flow projections and future sales growth etc. before approving any lending applications. And then you are held accountable to meet those projections because that was the basis of the loan.

A cash flow projection is supposed to help you manage when money is coming in and when money is going out; but this assumes that you have a consistent stream of money in/out to be able to make this work! If you’re a start-up then you don’t have a steady sales stream yet. Not to mention, you’re probably still experimenting with your costs so you’re expenses are fluctuating as you play around with things. This means you can project a sales of $10,000 and expenses of $8000 for September… but you don’t have enough historical data to really see if this is a reasonable projection. And now you’re being held accountable to something that maybe should not have been set in the first place.

Instead, a break-even analysis is a much more useful tool for entrepreneurs to use in the start-up phase. What this analysis shows is how much sales you would need to just cover your fixed costs. This, for most entrepreneurs, is the goal in the beginning – just to break even and maybe show a little profit. To calculate this you take your average sales price divided by your fixed costs. This will give you the number of sales you need to cover your costs.

This, for a start-up, provides a more reasonable goal to work towards. Once you’re consistently covering your costs you can start focusing on bigger sales targets. When you have consistent monthly revenues and expenses, then a cash flow projection can be made!

 

 

“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

 

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Written by Dwania Peele · Categorized: Shalini Dharna · Tagged: break even, cash flow, Entrepreneurs, money, small business, start-up

Aug 11 2015

How to Build a PR Campaign

CHuntly

Now you know all about PR and what it can do for your business, it’s time to put together a fabulous campaign so you can start seeing great results. But where do you start?

Here are nine steps to building a great PR campaign:

  1. Set goals: What do you want to achieve?

What does success look like to you? Once you decide what the end game is, then you can decide how to get there. There is no point in putting together a strategy if you don’t know what you want to accomplish. In fact, you will find that your strategy will lack direction, which means you could end up doing things that aren’t right for your brand.

  1. Decide on your budget

This always seems to be the toughest thing for any business to do, especially small businesses or start-ups. There are a couple of things you should do before setting your budget. First, conduct a bit of research to determine industry best practices. If you plan to hire a third party to help you put your strategy together and execute, that also has to factor in. The two most important things to realize are that you won’t get anything for free and you need to be honest with yourself. Even if it’s time spent knocking on doors and you want to do it yourself, that is time spent away from your regular business operation – time is money. When you factor in a third party (like an agency), they usually base their fees on an hourly estimate. The cheapest is not always the best option, but neither is the most expensive. Find an agency that will work with your budget. You have to make sure that you are honest with how much you can spend and work within those parameters. If you are working with an agency, it’s frustrating for both parties if you say there is no budget and then you complain when you see the proposed quote that it is too high.

  1. Decide on your timeframe

Depending on what your campaign’s objectives are you can determine when you would like to start/finish your campaign. Make sure you are giving yourself enough time to get all the prep work done at the beginning!

  1. Identify your target audience

Is this campaign meant to target a niche audience? Perhaps there is an audience that you think your brand would be perfect for, but you haven’t really had the opportunity to tap into it yet. Decide who you want to reach and then make sure you learn everything you can about them – where do they go online? Who influences their decision-making? How do they like to learn about new brands? Etc.

  1. What is your story?

Determine what story you are telling. That means finding the unique sweet spot that will make your brand stand out from the rest of your competitors. You need to be able to identify why this is important for your target audience.

  1. What channels do you want to utilize?

With so many options available to you, you need to reign yourself in a bit. Don’t spread your budget and time too thin by trying to target too many channels at once. Once you have identified your target audience, then it should become clear as to what channels you can and should use. Keep in mind that your channels may be determined partially by your budget!

  1. Research

At this point in your planning, you need to research different aspects of your strategic choices. If you are having an event, what other events are on the same day in your city/industry that would conflict? Have any of your competitors done similar things? Did it work for them? How can you make your idea unique? What are the costs associated with what you would like to do? Educate yourself on what you need to know before putting your strategy into action.

  1. Create a critical path

A critical path is just a fancy name for a timeline. Work backwards from your end goal and note major milestones you would like to hit in your campaign. Then flesh it out by putting in tasks and who is responsible to get each task done. The best way to track this is to set up a chart. I like to work in weekly increments. I identify the date, the task, and who is responsible in the first three columns. Always add one last column for “status” so you can get the satisfaction of writing “complete” when you have finished a task – it just feels good.

  1. Hit the ground running

Once you feel comfortable with your critical path, you are good to go. It’s time to set your strategy in motion. Don’t be afraid to track results along to way to see if you need to tweak your approach as you go!

Candace Huntly is the Founder and Principal at SongBird Marketing Communications, an 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 it unique to you.

Connect with Candace

Facebook/Twitter/LinkedIn/email/Website

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Written by Dwania Peele · Categorized: Candace Huntly · Tagged: achieve, audience, Budget, business, campaign, Canadian Small Business Women, Candace Huntly, channels, Content strategy, critical path, entrepreneur, goals, PR Campaign, Public Relations, research, Songbird Marketing Communications, start-up, story, success, target, target audience, timeframe

Apr 16 2015

10 tips to Cut costs, Increase sales, and Save time

Jemi

For every small business, there will always be costs to be paid out. The trick is to receive more business than having to pay bills. Whether you are a small start-up company or a retail store, these tips you can do right now. Marketing and advertising doesn’t have to cost you a lot of money. With a little planning and some time, you can achieve the results you want. Try all of these tips once and track the progress. If it works, great! Do it again. If it doesn’t, note why you think it didn’t and how you would do it over again.

Tip#1 Know your customer! A pet peeve of mine is when an entrepreneur will tell me that EVERYONE is their customer. Although it is true that we can take business from anyone, there will be a group of people that will be your primary customer. This is the “type” of customer that buys from you regularly. They say 80% of your business will come from 20% of your customers. Get to know your customers very well. Learn about their buying habits, their education, and lifestyle.

Tip#2 Following the previous tip, create a customer management system. This means a database where you place all your customers information including birthdays, anniversaries, spouse’s name and number (for gifts), and any other information that you can use to personalize the experience for your customer. These types of small gestures will bring a lot of business over time and a loyal clientele base.

Tip#3 Hire a student. College and University students are looking for experience in their field. You can hire them for an hourly basis or per contract. For example, I had a business mentor that didn’t have time to punch in her receipts into her excel so she hired an accountant student to simply punch in her numbers. The student gets extra money and the business owner has more time to do what they love to do.

Tip#4 Do not go with a very elaborate website. Start with something small and simple then work your way up when your business grows.

Tip#5 Try a joint venture. During your travels as an entrepreneur you’ll find some great people in the same industry but are not your competition.(For example; a makeup artist and hairdresser) These two professions are not in competition but they do cater to same market. You can join together on marketing (IE one business gets one side of a postcard, and the other has the opposite. Together you can split the cost of printing and get your business out there twice as fast)

Tip#6 Know your competition. Do a SWOT analysis of your greatest competition. “S” stands for strengths. What does your competition do better than you? “W” stands for weakness. What does your competition lack? “O” stands for opportunity. How can you improve your business from your strengths and weaknesses? “T” stands for threats. Where can your competition really hurt your business?

Tip#7 Barter goods. When you make great connections with other businesses, you can sometimes barter for goods. This means providing a service for a service instead of using money. You may give a service of printing business cards to get your car detailed for instance. This is a win-win relationship.

Tip#8 Track your invoices, receipts, and bill payments. When you have a handle of your finances, you are able to see where you are making the most money and how. Keep a journal and calendar on when bills need to get paid and when invoices are being charged.

Tip #9 Conduct surveys regularly. The best way to improve your business is to find out directly from your customers. Give coupons or discounts to your customers for participating in the survey.

Tip #10 Give out useful information for free. Your brain is full of so much expertise. Create opportunities to showcase your talents. You can hold free webinars. Volunteer to speak at different engagements. Write articles for different newspapers.

These ten tips will increase your bottom line immediately and save you money. Not every business owner has thousands of dollars to hire an advertising agency. Become an expert in your own marketing.

For more information contact Jemi Echevarria, marketing campaign manager at

(647)785-5851 or jemiechevarria@gmail.com

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Written by Dwania Peele · Categorized: Jemi Echevarria · Tagged: advertising, barter, bill payments, Canadian Small Business Women, college, competition, connections, cut costs, entrepreneur, free, hire, increase sales, information, invoices, Jemi Echevarria, joint venture, marketing, pay bills, planning, receipts, retail store, save time, small business, start-up, student, surveys, SWOT analysis, university, volunteer, webinars, website

Aug 30 2013

What Does A New Business Need?

Kerry George (1)

When you get started in business you will typically be bombarded with a thousand good ideas from hundreds of people who may or may not know a thing about how to succeed in business. Taking their advice may do you great harm. One must always ask themselves, “why would this person give me this counsel?” If they make their living by selling advertising of course they will say their advertising is the best. If they offer a gadget or an app that is supposed to save you time, they will want to convince you that theirs is the best.

A good question to ask a salesperson is, “Have you ever owned a business?” And close behind that question should be another, “As a business owner what differences did this make for you?”

So what do you really need to succeed in a start-up venture?

While it varies industry by industry there are a few common things that everyone needs. Here are 5 essentials:

  1. Good mentorship. Real mentorship can be had and it should be pursued. One mistake that new entrepreneurs make is that they believe they are the only one who ever had this kind of business so they do not seek advice. That is a mistake that could cost you everything. One poor decision can take you out. So find someone who has succeeded at anything at all and that is a better mentor than not having one because you can’t find a person in your industry. Entrepreneurs are busy people but they typically enjoy the stimulating conversation of someone who is earnestly looking to learn. Ask questions and listen more than you talk. Build the relationship and don’t ask for their business. That may come later after you have won trust but it is not the purpose of the friendship. You need their wisdom to survive.
  2. Capital or cash flow. You either need a lot of up front capital or you need to produce a solid and consistent cash flow. If you are producing widgets part-time and working at a job, keep the job until you have enough consistent orders or you will die. Your family will suffer. You will hurt. Cash flow is king.
  3. Marketing, marketing, marketing. Sales cannot be properly supported unless you have invested either time into marketing or money and in many cases both. Never wait to start marketing. Your sales staff needs to have brochures to explain your service and they should have business cards and whatever else it takes to support a sale. It also takes months to produce a legitimate following online with Twitter, Facebook and LinkedIn. So don’t wait until your product launches to get started or you will shout about your new business to an empty room. Start building a small following online and take them with through the journey. By the time you launch you will have an active group of engaged cheerleaders who are excited about your new offering!
  4. Website and online presence. Today is a different world than it was even 5 years ago. These are not just about marketing these are essential to your survival and your success. Your credibility will be judged by a prospects ability to find information about you online. While branding is important do not wait to have it all perfectly aligned in the heavens to get started. You can set up a website for anywhere from $100 to $10,000 and you need to either have it done for you or get to work on it late at night. Remember that after they look at your website they then go look at you the owner. So develop a personal profile on LinkedIn, Twitter and Facebook. Don’t delay if you want to succeed.
  5. Accounting and tracking. Entrepreneurs often lack good bookkeeping skills. Get over it and get help. Use an online program or hire someone for a few hours a month to just keep you on track. An unpaid GST bill or a badly done tax return can destroy you. One also needs to know the numbers to improve the sales ratio later. If nothing is tracked success will be lacking. Find systems that work and implement them sooner rather than later.

Kerry George is the owner of the Canadian Imperial Business Network which is currently the largest business network in Alberta and rapidly expanding across the country. She is a serial entrepreneur/author and speaker with a zest for life and a passion to help others succeed in increasing their potential and their bottom line. Kerry has several publications and blogs that you can follow and welcomes most interaction online.

Twitter

@createloyalty2U

@CIBNtweets

@yycbiznetwork

Blogs

http://loyal2u.blogspot.ca/

http://calgarybiz.net/blog-3/

http://kidsincowtown.wordpress.com/

http://loyal2u.ca/category/social-media-2/linkedin/

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Written by Dwania Peele · Categorized: Kerry George · Tagged: accounting, business, business development, Business Woman, Canadian Imperial Business Network, Canadian Small Business Women, capital, cash flow, entrepreneur, Good Mentorship, Kerry George, marketing, online presence, small business development, start-up, tracking, venture, website

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