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Factoring
for growth in 2007
It is now early February, and an important task is on
your mind: analyzing the activities and output from
January, your first crack at 2007. Did January kick
off even before your holiday decorations came down,
or did it take most of the month to get back in the
swing of things?
Maybe we need to step back. Have you had a chance to
review financial statements from 2006? Did you meet
your sales and profit objectives? What was the variance?
5-15% over target is manageable good news. If you were
20% over expectations, can you maintain that pace this
year with your current resources? Likewise, 5-15% under
target might be disappointing but manageable with some
tweaking. But 20% or more under expectations can mean
a need for some very serious analysis. Can you determine
what factors led to the variance in your projections
vs. actuals?
Did you have a sales target for January, and indeed
is your sales plan in place for first quarter and all
of 2007? Now is the time to map out the year, or at
least the quarter.
Consider the following:
Do you want to increase sales over 2006? If so, by
how much specifically?
What resources will this growth require? More staff,
better systems, bigger space, increased advertising?
How much will these new resources cost, and will the
(expected) increase in sales justify it?
What training, infrastructure or other support will
the new resources require? How much time will it take
to get the new resources performing?
What are you doing to develop new accounts? Can you
develop new uses for your existing products, increase
the selection of products you offer, or export to new
markets?
How have your competitors changed since last year?
Do you still have a unique offering? How are you counter-acting
new pressure?
How have your customers changed since last year? Do
they have new needs, and are you changing to meet them?
What new trends in the industry are revealing themselves?
What do they mean to your business?
In order to set realistic goals for 2007, you’ll need
to do an analysis of last year’s activities and results,
plus factor in changes in the marketplace since your
last thorough research. Then you can set up your monthly
or quarterly sales targets and also schedule time to
review your results. Small business often has the ability
to “turn on a dime” unlike its large competitors. By
regularly analyzing your progress and determining influencing
factors, you’ll be able to be flexible enough to adapt
your business plan as required.
Cassandra Baccardax is Senior Economic Development
Officer –Entrepreneurship at Brampton’s Small Business
Enterprise Centre. She can be contacted at 905 874 2667
or by email cassandra.baccardax@brampton.ca.
or Visit www.brampton.ca.
This article offers general information and opinion
only and is not intended as specific business advice.
Readers should consult their own professional advisors
when considering any business strategy for their venture.
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Sales
Monitoring in the First Quarter
Out with the old and in with the new. 2007 has marked
a change in the calendar, but have your marked a change
in your approach to sales? Do you know what went right
last year and why, and are you prepared to capitalize
on it now? Conversely if you fell below target, did
you recognize the symptoms and analyze the root causes,
and have you planned and set actions in place to correct
the situation?
Over the next two months I will describe 10 areas for
you to monitor in the first quarter to ensure that your
sales stay on track and revenues grow, while your customers
remain overwhelmed by your remarkable customer service.
The first five
1. How are you tracking against your first quarter sales
and revenue targets? The most successful businesses
attempt to overshoot their objectives in the first quarter
of the year. This leaves them in a good position to
weather any unexpected downturn later in the year or
a loss of a customer along the way. Everybody likes
to be ahead in the race after the first turn. You certainly
don’t want to be in a catch up situation after only
three months!
2. What new things are your competitors doing in the
marketplace? You need to be keenly aware of new marketing
programs, re-introductions, logo changes, new service
offerings etc. These often indicate a competitor who
recognizes that more business can be taken away from
others (read you) by a concerted marketing awareness
campaign or an introduction of services that may be
unique or differentiated from yours.
3. Are your customers paying on time? Salespeople have
long been aware that if a client starts the year with
slow payments or no payments it is usually not a good
sign of things to come.
4. What sales training courses should you be taking
to upgrade your sales skills? The most effective salespeople
spend at least five to seven days in professional development
training every year. Consumers are smarter, purchasers
have degrees, the competition is sharper and if you
haven’t improved your competencies you will fall short.
5. Do any of your clients have special dates or anniversaries
this year that you should plan for? Those account cards
that we all hate to keep but are essential components
of an effective sales strategy will keep you informed.
Be the first supplier to mention the special date and
figure out a way for your company to gain some recognition
from it.
Next month we will look at five other key areas for
you to monitor in your sales.
Jeff Bowman is professional sales and productivity
trainer, speaker and facilitator with Bowman Training
Initiatives and The Marketing PAD. He can be reached
at www.bowmantraining.ca
or www.themarketingpad.com
.
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Tips
for the Trade Show exhibitor
Exhibiting at a Trade Show offers a unique and powerful
selling opportunity; a unique place to begin a relationship
with potential customers. To be successful and enjoy
the Trade Show experience here are some helpful tips.
Pre-show preparation
Formulate written objectives. Drive qualified attendees
to your booth using direct invitations with free passes
and pre-show promotions like "visit our booth for
an opportunity to WIN a "Dinner for Two"
At the Show: CLARITY, CLARITY, CLARITY. Clarity is the
most important point. You want to make it very clear
who you are, why you are there and why someone would
want to stop and talk to you. Within four to seven seconds
of spotting your booth people should know exactly what’s
in it for them, and what the heck it is that you do.
Create your own unique space; use a table top display
or a large 10" X 10" format print image as
a back wall. The job of the back wall is:
• To attract the attention of people passing by
• To project an appropriate image for your company
• To impress people and provide a quick glimpse of what
you offer
The initial outlay for a Trade Show booth may seem expensive,
but remember this is an investment and can be used again
and again. If portable, you can carry this in your trunk
and set it up wherever and whenever the opportunity
arises. …Board of Trade events, exhibitions, etc.
Be creative - you want to people to look and say WOW!
Keep it simple -you want to keep the set–up and take
down to a minimum; this is another reason to purchase
a proper display - portability and WOW at the same time.
At many events you will be required to set up the day
before. Arrive at the event early. When you are sure
your booth is ready take a walk around the event floor.
Be your own critic…..can your booth sign be spotted
from across the room? Does your space shout…WOW!! or
is it only a "whisper"? Does it look attractive,
snappy and funky? Ask a fellow exhibitor's opinion.
Does he know instantly who you are and what you do?
Remember the four to seven second rule…that’s how long
you have to catch someone's attention.
Now that you've got people at your booth, provide a
give-away - pens, caps, brochures – something with your
logo and contact information on it.
Have a gift basket for a door prize or if the door prize
is a "Dinner for Two" you will want to have
a large enough sign; and always have a fish bowl or
somewhere for attendees to deposit their business card.
Wear comfortable shoes. And remember why you are there!
Good Luck!
Carol D'Alessandro is VP, Business Development of Logistics
Associates. If you have a logistics question, call Carol
at 905-861-9600 or visit http://www.logisticsassoc.com
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Teams
and decision making preferences
Have you ever noticed how when a team is about to embark
on a project, there are different leaders who emerge
to take on different tasks? The brain storming that
occurs and what comes out of these sessions has very
much to do with the “Personality Types” that you have
on the team.
A team is a group of two or more individuals working
together to accomplish a task. With the explosion of
knowledge in the information age and the greater interdependence
of different work groups, it has become clear that team
members need to work together, more effectively to accomplish
tasks.
In the past, most organizations have emphasized the
interactions between managers and employees, the challenge
for the future lies in the interactions among employees
as equals (i.e. on teams) These teams may be cross-functional
in nature and will operate without the benefit of a
built-in hierarchy. Thus team members may be less certain
of their respective roles.
The Myers Briggs Type Indicator (MBTI) can help team
members manage these roles and contribute to the team
in their own unique style. The MBTI recognizes individual
preferred way of doing things. A team that works well
together is not a chance event. People concerned about
effective teams need to understand themselves first.
They also need to know how they function best in a group
setting.
By analyzing the collective preferences on a team,
the team can discover and appropriately manage potential
areas of strength and weakness. This does not mean assigning
people tasks based on MBTI preferences only. MBTI can
help determine the fit between a person and a given
task; however, type should never be the sole criterion
for assignment. Personal motivation, interests, and
needs, as well as an even distribution of work must
be considered.
The MBTI specifically aids people on a team by:
• Reducing unproductive work by improving communication
• Identifying individual and team areas of strength
and weakness
• Clarifying team behaviour
• Helping match specific task assignments to certain
MBTI Types.
• Building an objective framework for dealing with conflict
• Helping individuals understand how different perspectives
and methods can lead to useful and effective problem
solving.
• Predicting potential problem areas
• Teaching team members to value and work with the strengths
of others.
What makes the MBTI so powerful is that it is a resource
for not only understanding current issues, but for anticipating,
even predicting problems.
Frances Laming-Vancer CHRP is the Founder and President
of HR Concepts Management Consultants Inc. and can be
reached at frances@hrconcepts.ca
and/or 905-793-5017
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How
to increase retirement income and reduce corporate tax?
Editor’s note – This is Part six of a nine-part series,
“Eight critical questions every small business owner
should answer.”
As an owner of a corporation, you have several innovative
strategies available to help you reduce or defer corporate
income tax and enhance your income in retirement.
Each of these strategies has its advantages, but based
on your unique business structure and financial situation,
there are also several considerations you need to evaluate.
Individual pension plans
An IPP is an employer-sponsored registered pension plan
that you can set up to maximize your retirement benefits.
Depending on your age, income and business
structure, you may be able to take advantage of:
• Higher contributions limits compared to an RSP
• Tax-deductible contributions and related expenses
However, IPPs are also:
• Required to be structured as “locked-in” plans
• Typically have higher administration costs
Insured retirement
An IRP can enhance your existing retirement
savings using tax-exempt life insurance. The accumulated
value of your insurance policy can be used to provide
you with retirement income. IRPs offer significant benefits
to small business owners:
• Tax benefits while saving, in retirement, and through
your estate
• Make significant contributions in the last 10 to 15
years before retirement
At the same time, you should keep in mind that:
• IRP deposits are not tax-deductible the way RSP contributions
are
• There is a qualifying application process
Retirement compensation
A RCA is a non-registered plan set up by your
company to provide benefits when you retire. Implementing
an RCA allows you to:
• Reduce the income gap between your working years and
retirement
• Make tax-deductible contributions through your business
On the other side of the coin:
• RCAs are only available to businesses with annual
profits above the small business deduction limit
• Capital gains and dividends earned through your RCA
are taxed at your regular rate
Corporate insured annuities
A corporate insured annuity is designed to increase
cash flow during your working years, while ensuring
that you can still leave a substantial estate. This
strategy allows business owners to:
• Supplement their current personal income with interest
income
• Enhance your personal estate
However there are limitations including:
• Long-term financial commitment
• Reduced financial flexibility
The right strategy
Accurately identify your business and retirement needs
so you can implement the right strategies to build wealth
and maximize your retirement income.
Mike Huet is Vice-President and an Investment Advisor
with RBC Dominion Securities Inc. in Brampton. Member
CIPF. Mike can be reached at 905-450-1042 or at mike.huet@rbc.com.
This article is not intended as nor does it constitute
tax or legal advice. Readers should consult their own
lawyer, accountant or other professional advisor when
planning to implement a strategy.
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Yoga
for business success
To thrive and succeed in the business world, many self
management skills are necessary, including the ability
to manage stress, relax quickly at will, energize when
necessary, handle sleep deprivation, relieve headaches,
overcome fear and depression, manage anger, sharpen
concentration, expand intuition, experience tranquility,
relieve grumpiness, persevere to completion, substitute
good habits for bad, improved decision making, improve
self esteem and persona; magnetism and manifest your
potential.
You can accomplish all of the above with some guidance
and hard work with Yogic techniques.
What is Yoga? Yoga is a science of mind, an ancient
system of exercise that includes thousands of physical
and mental exercises designed to strengthen and balance
the body, rejuvenate the nervous system and concentrate
the mind. Yoga integrates the body and mind so that
you can experience your essence, inner peace.
Yoga is not a religion; it is a technology and a discipline
similar to martial arts. You can be of any faith or
religion and still gain the healing benefits of Yoga.
Through the practice of Yoga the body gradually becomes
healthier and the nervous system stronger and the mind
develops the ability to concentrate. The practice of
Yoga directly affects the nervous system and activates
the endocrine glad system. Each of the endocrine glands
plays a major role in the body’s functioning. Here is
a brief summary of their effects:
The gonad secretions affect your potency and creativity
as well as the ability to sit still for meditation;
the pancreas affects the blood sugar and digestion,
the thymus affects the immune system, the parathyroid
and the thyroid regulate the body metabolism, health
and the aging process; the pituitary regulates the other
endocrine glands and affects intuition, the pineal gland
regulates the sleep cycles and affects the higher states
of consciousness.
Each Yoga exercise typically has a posture; breathing,
mantra and movement, through the combination of all
these factors the results are faster than any other
type of exercise.
There are many types of Yogic techniques available
to us; like anything else if you think something has
the potential to work for you; it will. Contrary to
the beliefs you do not have to have a flexible body
to start the practice of Yoga; however that can be a
result of the skills you learn in your practice of Yoga.
I encourage you to come out experience the effects of
Yoga see for yourself if you feel any difference in
your well being.
Snigdha Malik is a Certified Yoga teacher through Yoga
Alliance and manages a successful Financial Planning
business in Brampton. You can contact Snigdha at 416-697-6849
or snigdham@adventfg.com
for more details on Yoga classes.
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Resolve
to save big $ at tax time
As 2007 unfolds, this is the perfect time to make a
New Year’s resolution that will benefit your business.
Resolve to identify and organize your business expenses
– and you could save literally thousands of dollars
at income tax time. Following are some often overlooked,
but very effective ways to do this.
As you spend money each day, record your business
expenses – and save the receipts.
Remember to collect receipts for, and to claim, the
following business expenses that many owners tend to
overlook: automobile expenses, bad debts, books and
subscriptions, cellphone, depreciation for computer,
education/training, entertaining and meals, gifts, membership
dues, parking, seminars, conventions and trade shows,
taxi and transit fares, and travel.
Even though you may not have receipts for incidental
expenses such as parking meters or taxi fares, you may
still deduct these expenses at tax time, provided they
are reasonable. Where possible, keep a record of when
and where you spent money in case the Canada Revenue
Agency inquires.
Prior to purchasing any major expenditures, consult
with your accountant to determine the optimal strategy
and timing.
Claim capital cost allowance strategically; you can,
for example, use as much or as little as you need this
year and carry any unused amount forward to offset income
taxes in the future.
Review your income tax filings from previous years
to identify any unused tax credits or deductions such
as charitable donations or medical expenses.
If you are self-employed, you can deduct the employer’s
portion of earned income contributions for the Canada
Pension Plan as well as premiums paid for coverage under
Ontario’s Workplace Safety and Insurance Board.
If you are self-employed, you may also deduct health
and dental premiums paid on your behalf or that of family
members who work in the business for a private health
services plan.
Remember, the 2007 tax filing deadline for individuals
is April 30. While the deadline for taxpayers with business
income is June 15, any tax owing is still due by April
30. By resolving to implement some of these strategies,
however, you might just pay less tax this year.
Kais Aziz CA, is a senior manager of BDO Dunwoody LLP
(www.bdo.ca). If you have questions about this article
or you would like to receive BDO’s Tax Factor newsletter,
contact Kais in the Brampton office at (905) 450-6066
or kaziz@bdo.ca.
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How
business travelers fight the common cold
By now the cold and flu season is well underway. Not
surprisingly, business travelers are more exposed than
most people to the germs that cause these annoying illnesses.
A recent study conducted by Harris Interactive found
that 79 percent of U.S. travelers believe the worst
time to catch a cold is when they're away from home
on business, and 58 percent said catching a bug was
more annoying than sitting next to a crying infant while
traveling. Are there ways to reduce your risk of exposure?
Can you lessen the severity of the symptoms at the first
sneeze or cough? The answers are yes and yes. Here are
a few timely tips for frequent fliers:
Prevention: Make sure that you take advantage of the
free flu shots offered in Ontario.
Preparation: Consider packing a small supply of over-the-counter
medications and remedies into your checked luggage as
insurance during cold and flu season. To relieve a stuffy
nose, look for products that say decongestant on the
label. To treat fever, aches and pains, generic ibuprofen
tablets will often do the trick. If you need a full
night's rest, Nyquil or a similar liquid containing
a cough suppressant is useful.
On The Plane: Drink plenty of water, pack a travel-size
nasal lubricant gel to keep nasal passages moist and
better able to resist germs in the dry cabin environment,
and wash your hands often (or use a hand sanitizer).
Bring your own travel pillow and blanket. And to soothe
a dry throat, pack a few sugar-free hard candies or
lozenges. Keep your hands away from your nose and mouth.
On The Road: Wherever you are, in airports, restaurants,
convention centres, client offices or other public spaces,
remember to wash your hands frequently. Use automatic,
"touchless" towel dispensers or hand-dryers
rather than traditional, lever-operated dispensers where
possible. If there's no soap, use an alcohol-based hand
rub; these are sold in convenient travel sizes, and
many rest rooms are now equipped with large dispensers
of gel sanitizer. Contrary to popular belief, alcohol
gel products actually cause less skin irritation and
dryness than commonly used public rest room soaps. According
to the Center for Disease Control, hand washing is the
single most important way of reducing the spread of
germs. Once you're safely in your hotel room, take a
long hot shower and inhale plenty of warm mist. Ask
housekeeping for a humidifier if the air in the room
seems dry. Keep drinking bottled water, and get plenty
of sleep.
Sometimes It's Polite Not To Shake Hands: If you have
or are recovering from a cold or the flu, or you suspect
the person you are greeting is, the best course of action
is to decline a handshake. How can you do this politely,
with the least risk of offending the other person? Make
eye contact, smile and say, apologetically, "I'm
sorry, I'm just getting over a cold. Would you mind
if we don't shake hands?" There's no cure for the
common cold, but lessening the chances that you'll catch
one is easy.
Article provided by Malcolm Slater from Uniglobe Plus
Travel Group. (905 454 4949 ext 225)
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You
got the interview – now what?
Your resume has done its job, you have been asked to
come in to interview for that job you applied for. Now,
the butterflies are starting to gather in your stomach.
Not an unusual situation, in fact a little anxiety is
considered useful if you channel it properly.
The question: how to get those butterflies flying in
formation? One effective way to get control of your
anxiety is to remember: “you are also interviewing the
company to see if you really want to work there”.
First, let’s take a look at some of the questions you
might be asked in today’s style of behavioural interview.
What did you like most about your previous employment?
Here it is important to be aware of what your previous
employment offered that might also be available with
this new employer. Linking the two can work wonders
for your prospects.
• What did you like the least about your previous employment?
A critical point to remember is not to burn your bridges.
Yes, you need to say what did not work well for you
but don’t trash your previous employer.
• What type of work would you prefer to do if you could
do anything you wanted? The secret here is: BE REALISTIC.
If the job you are seeking has a number of elements
that would fit that type of work, be sure to bring them
into your answer.
At the conclusion of the interview the standard is
for the interviewer to ask you what question you have
for them. A couple to keep in mind:
• What specific education / training / experience do
you believe it takes to be a success in this job with
your organization? This will help you establish whether
you have what is required or are deficient in one or
more areas. It will also give you a good idea about
whether or not the requirements are easily obtained
or would take too long for your job search to be successful
in this area.
• How will you know in 3 – 6 months that I am successful
in this position? This question does two things for
you. First, it establishes you as someone who is willing
to have their performance objectively measured. Second,
it establishes up front what the success measure will
be, allowing you to determine whether you are prepared
to be held to that standard should you be hired.
Gordon. Newman, is President of The Newman Learning
Group Inc. an organization dedicated to providing value
add solutions to improve the bottom line performance
of organization and individuals. Gordon may be reached
at gordon@newmanlearning.com
or 905-790-2944
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