Thursday, December 23, 2010

Planning for Small Business Success in 2011 ? Develop Business Mentoring Relationships

Are you preparing for success in 2011?  One way to achieve this for a small business is through developing and leveraging Business Mentoring relationships.

If you don't know exactly what a Business Mentoring relationship is, where to find one, and what to look for in such a relationship, following the Business Mentoring link for more information and related links on the same landing page.

Your local chamber of commerce or board of trade may also have mentoring or small business advisory boards, forums or panels with whom you can discuss your goals and challenges and to obtain business advice.

One important note is that you should expect to receive all the expertise you require from a single individual.  You should first decide what your needs are, for example, marketing, sales, operations, information technology, prioritize which one(s) would have the greatest impact on your top line (sales) and bottom line (profits), and seek out a mentor with these areas of expertise.

See these additional resources for more information about developing and nuturing Business Mentoring Relationships:

 

2. Working with a Business Mentor - How to create a mutually rewarding relationship

http://entrepreneurs.about.com/od/businessmentoring/a/businessmentor.htm

 

Wishing you Happy Holidays and Business Success in 2011!
Regards,
Stephen Beech, MBA, CMA

(905)949-4388 ext. 24http://www.smallbizprosmississauga.ca/
http://www.paytrak.ca/

 (c) Stephen Beech 2010

Monday, December 13, 2010

Business Building Through Business Networking - Overcoming Shyness

As we enter the Holiday Season, I along with many small business owners have the opportunity to attend holiday gatherings of a personal or business nature.  These are perfect opportunities to make business connections and business prospects, that is if you are comfortable talking about your business.

The 5 tips provided below I refer to new business owners to overcome shyness and help capitalize on networking opportunities. 

Good luck and Happy Holidays!
Stephen Beech MBA, CMA

Get Over Your Networking Shyness
You can't get the word out on your business unless you're talking it up. Overcome your
marketing hesitance with these 5 tips.
By Sean M. Lyden

Q: I keep hearing that networking is a good way to drum up new business for my home based business support firm, but I hate doing it. I'm shy and I get embarrassed when I'm trying to talk about my company, like I'm forcing myself on the person I'm talking to.  How can I get over this?

A: Your success as an entrepreneur hinges on how well you communicate with people.  Therefore, it's a good thing that you're trying to address this issue right now before shyness can jeopardize your venture. Use these five tips to break the power of shyness and take your business to the next level:

 1. Set clear goals. What do you want to accomplish in your business? What income level do you want to achieve? Think in tangible terms: What would your life look like if you accomplished your goals? Where would you travel? What kind of home would you own? What kind of car would you drive? Then consider the alternative: What might happen if you allow shyness to stop you from pursuing your dreams? What would it cost you in terms of potential income and life fulfillment? By simply taking the time to define your goals and write them down, you intensify your desire to overcome your shyness.

2. Turn your focus away from yourself. When you're at a networking event, instead of feeling embarrassed about "forcing yourself" onto the other person, simply switch the focus of the conversation to that person. Ask questions like:
  •  Are you a member?
  • How have you benefited from your membership?
  • Do you attend regularly?
  • Are you on any committees?
  • What business are you in?
  • How did you get into your business (or career path)?
The irony is that when you allow people to talk about themselves, they will be more likely to enjoy the conversation with you—and naturally view your business in a positive light. In other words, you're indirectly promoting your business without having to force yourself on that person.

Also, after you've met someone new, take it upon yourself to introduce that person to others. This gives you a job to do and the activity takes your mind off your fear.

3. Practice, practice, practice. A key step to overcoming shyness is preparation and practice. Write down in advance the questions you think will stimulate and sustain conversations. Then practice in an environment where you won't feel intimidated. Try role-playing with someone you feel comfortable with, perhaps a spouse, friend, coach or even a sales trainer. This way, even when you feel insecure, you're equipped to push through the fear because you have a clear idea of what you want to say and how you're going to say it.

4. Learn from your mistakes—don't fear them. Often shyness comes from a fear of making a fool of yourself. Diminish that fear by focusing on what you can learn from networking situations, whether good or bad. Perhaps you notice particular phrases you use that generate positive responses. Write these phrases down and use them. On the other hand, when a phrase or action gets no response or a negative response, take notice and avoid it in the future. When you take time to assess your approach, you'll position yourself to be more successful with your interactions with people.

5. Reward yourself when you've done well. If you make it to a networking event and speak with, say, five or six new people and stay as long as you planned, give yourself a reward. Perhaps it's a new book, a dinner out—whatever motivates you. Withhold the reward if you don't meet your goal.

The bottom line? The more you network, the more proficient and confident you'll become at it. In addition, the more your confidence grows the less power your shyness will have over you.

Sean Lyden is the CEO of Prestige Positioning (a service of The Professional Writing Firm Inc.), an Atlanta-based firm that
"positions" clients as leading experts in their field—through ghost-written articles and books for publication. Clients include Morgan
Stanley, IFG Securities, SunTrust Service Corp. and several professional advisory and management consulting firms nationwide.
The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to
specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.
Copyright © 2002 Entrepreneur.com, Inc. All rights reserved.

Tuesday, December 7, 2010

Finding the Right Accountant for Your Business – They’re Not All Alike!

Generally people I speak with understand that not all doctors or lawyers are alike.  Many specialize in only one or two areas such as family medicine, internal medicine or real estate law or commercial law.  Similarly accountants also specialize in a limited number of areas including audit, tax, corporate law, mergers or acquisitions, or even small business accounting!
Consider the following when deciding on the right accountant for your small business:
1.       If you already have an accountant, how often do you see your him/her ? Do you meet with him or her annually?  Quarterly?  Would you appreciate an opportunity to speak with him/her on a monthly basis or only when needed?  When you have reached out to your accountant, how responsive were they?
2.       What do you want your accountant to do for you?
Do you want them to only prepare the year-end financial statements and tax returns, or would you like to receive advice on business issues such as tax planning for future acquisitions, improving the profitability of your business or assist with financing, succession or business plans?
At a minimum, a good accountant for your small business should allow you to save MONEY, save you TIME, and provide you PEACE OF MIND.  Each of these will be discussed in more detail below.

An accountant should be working in the interest of the client to save MONEY.  This effort can take several forms including tax planning to minimize the tax you pay (not to avoid paying tax, because of course this is illegal), maximizing the profits of the business, avoiding tax penalties from inaccurate or late tax filings for payroll, GST/ HST or corporate income tax remittances, or increasing cash flow through management of payables, receivables, or merchant services (a.k.a. credit card processing) fees.  By meeting and discussing the results of your business performance the accountant can help identify areas for reducing cost, improving performance in the short term and plan the course for improving performance in the future.

 Your account should be also working to help reduce the amount of TIME consumed by the client in preparing, delivering, and interpreting the results provided by the accountant.  The accountant can help to introduce record keeping systems to streamline the collection of receipts, invoices, recording of transactions (cheques, automatic deposit/withdrawals), manage payroll calculations and remittances and in some cases pick up and deliver the accounting information for bookkeeping processing on a regular basis.  The accountant should be able to meet with the client on a regular basis to evaluate the performance of the business against pre-established goals for cost containment, profitability and growth or other objectives to allow the owner-manager to adjust throughout the year in order to respond to market conditions or other operational events.

Finally, through the accomplishment of the first two elements above, the accountant should seek to provide PEACE OF MIND to the small business owner.  This should be achieved by providing sound and timely financial advice, avoiding unnecessary interest charges and late filing penalties for payroll and other taxes, open communication regarding business plans and objectives, accurate and complete record keeping including capital and other assets in the business, and through timely and well developed tax planning for business and life events which may include as succession planning, purchase and sale, mergers and acquisitions, changes in shareholder arrangements.
Some small business owners say “I prefer to use a Chartered Accounant (CA)”.  In response I would say that there are several types of qualified parties that may be able to provide the services you require. CA’s are often used when a business requires several type of accounting services such as cross-border tax advice, servicing complex issues related to multi-location, multi- shareholder groups, or when an audit is required by a bank.  If this does not apply to your business, then it may be possible to reduce the fees you pay for accounting and bookkeeping services.  If you are a business owner and sole shareholder, you may only wish to maintain your records for tax purposes.  For this purpose you may only need the services of a bookkeeper for the regular accounting and an accountant for the year-end tax return.  This may be one in the same individual who may or may not be a designated general (CGA) or management accountant (CMA) and may also be able to provide you with tax return preparation and tax planning services based on an intimate understanding of your business gained through the regular bookkeeping performed for your business.

When selecting the accountant for your business, develop a clear understanding of the needs and goals of your business, and an understanding of the qualifications of who exactly will be providing the accounting services - a CA firm partner, manager or intern - and whether this will provide the level of value you receive for the fees that you pay.  Having considered these and the other factors discussed above will position you well to obtain value for service provided, and above all your business success.

Good luck and stay tuned for the next instalment of Small Business Tips!

Regards,
Stephen Beech, MBA CMA
Padgett Business Services
(905)949-4388 ext. 24
http://www.smallbizprosmississauga.ca/

 (c) Stephen Beech 2010

Wednesday, December 1, 2010

Small Business Tip #1 - Credit Card Processing Charges - The devil is in the details

I recently reviewed several service offerings from a number of prominent merchant services providers (credit card transaction processors) and was surprised to learn of the various charges that could apply over and above the standard transaction fees for Visa, Mastercard and Debit card transactions which normally range from 1.65% - 3%+ of the value of the transaction for credit cards and 7 - 10 cents per debit transaction.



Where credit cards are manually entered into the credit processing terminal or online, the transactions are considered "non-qualified" or "non-verified" and are assigned slighthly higher rejection risk, and therefore attract an additional charge of 0.2-1.0%  per transaction depending on the service provider.  This is also true for processing of premium credit cards with 'cash back', travel points, or other premium benefit programs attached to the cards.  In effect, the premium packages are funded in large part by the additional merchant fees and not by the annual fees charged to the card holders.

In addition to the base and additional service fees, a merchant should also consider the after sales service and support that will be provided, as well as any switching costs that may be incurred when considering changing to another provider - are you locked in for a term contract?  If so, what are the cancellation charges?  Will they take back the processing terminal? If not, will the terminal be compatible with the new service provider's software and hardware? Based on the answers to these questions, you may be on the hook for additional charges upon early termination of your contract to switch to another merchant services provider.

Armed with this information from the 'small print' of the merchant services contracts, it is recommended to shop around to find the best combination of price and service for your business, given the mix of cards, volume operation of your business.

Stay tuned for additional financial tips for Small Business.

Stephen Beech, MBA, CMA
Padgett Business Services
www.padgettmississaugasouth.ca
(905)949-4388 ext. 24

 (c) Stephen Beech 2010

Tuesday, November 30, 2010

The Top Challenges Facing Small Business in 2010 - according to Small Business Owners

Introduction
In the wake of the U.S. mortgage crisis and ensuing ‘great recession’, I sought to identify the key areas of concern for small business owners and provide insight and additional resources to help business owners overcome their challenges.  Through an online survey published in November 2010, small business owners were asked to identify their top three concerns facing their businesses in the current economic climate. Through this and a follow up series of articles I will discuss the results of the survey and will provide advice and resources to help business owners overcome these challenges.
Results & Interpretation, Implications for SME’s
The results of the survey reveal that the main concerns expressed by respondents revolved around developing new business prospects (21%), and maintaining revenues, cash flows, and profit margins (17%).  Following these main concerns, are variety of other concerns were top of mind for small businesses including identifying, retaining and motivating human resources (10%), monitoring impacts of changes in government, taxes and health care costs (10%).  Other concerns identified were emerging such as the need to understanding and implementing social media and other marketing strategy (8%), challenges of maintaining strategic focus versus taking advantage of opportunistic events (8%), managing time and organizational risk (8%), and operational efficiency improvement (cost reduction, supply chain improvement, development of business intelligence and just-in-time financial reporting (2%), and personal finance, investments and retirement planning (2%)).
Figure 1. Online survey responses collected from Small Business owners
These results are consistent with broader economic commentary in the general media which indicates that we are only beginning to emerge from the ‘great recession’ and that personal and commercial bankruptcies, unemployment and new business registrations are fairly unchanged over the last six to eight months.  Revenue, cash flow, business development and sustainability remain primary concerns for small businesses.  It is particularly in uncertain that businesses should evaluate their competitive landscapes, relative competitive positions, financial positions and evaluate the effectiveness of their competitive strategies.  Through this process, businesses can refine their product/service and marketing strategies, target markets and strengthen their positions.  In the coming weeks, we will post articles addressing strategic and other organizational challenges leading to actionable plans going forward.
Visit regularly for additional information relevant to small business owners.
Stephen Beech

Padgett Business Services
Facebook: Padgett Mississauga accounting bookkeeping tax
Twitter: padgettmississauga

 (c) Stephen Beech 2010

Friday, November 26, 2010

Small Business Accounting and Tax Tips - Welcome and Introduction

Welcome to our blog for Small Business owners and those interested in small business ownership.

This blog is intended to discuss issues around bookkeeping, accounting, finance and tax planning for the small business owner and owner/manager.

Please visit regularly for the latest articles related to managing the finances of a small business, Tax rules changes and advice around bookkeeping, accounting, payroll, tax and general small business management.

I welcome any comments and recommended topics for discussion related to small business ownership and look forward to your participation and discussion!

Regards,
Stephen Beech

http://www.smallbizprosmississauga.ca/
Follow on Twitter: @StephenBeech
Facebook: Padgett Misssauga Accounting Bookkeeping Tax