The period of planning, launching and growing a business is a wonderful time in your life.
You get to put into motion the ideas in your head. You get to see it all come together. You get to make it all happen – on your time, using your energy and using your wits.
It will be a time full of excitement, fear and uncertainty all mixed together. Breathe it all in and just keep going, because you’ve made a monumental decision that will forever alter your life – for the better!
Here’s why your choice to enter entrepreneurship is so wonderful:
No more boss.
This reason kind of speaks for itself. The freedom and independent you will now enjoy as a self-employed person is unlike anything you’ve experienced before as an employee. No set office hours. No one will set appointments in your Outlook schedule. No one will force you to follow company policy or work toward company objectives you don’t support. You control all of those things.
And here’s a perk: you can choose the people you work with – from suppliers, to partners to employees to customers.
No income ceiling.
A nice job with a nice cubicle and a nice salary is, well, nice. But it can’t satisfy the individual who wants more financial reward than an employer can provide.
The good news is there’s no income limit as an entrepreneur. You can earn as much money as you want. Very few jobs pay you what you are truly worth. And most millionaires in North America are self-employed.
While you may not be motivated entirely by money or personal wealth, you should take comfort knowing that you are now in the best position to realize new riches – however you define that.
Fulfil your purpose.
You’ve likely started your business to pursue a passion. It’s a chance to do what you love to do, every day and all day, for the rest of your life. Being able to apply your talents (whatever they may be) is a gift that most employed people will never get to experience in their lives.
It’s also a chance to fulfil your purpose, or calling. You know what I mean: that “pull” to a certain mission or goal or objective that you just can’t ignore. You recognized a need to do something and decided to pursue it – to become the person you’ve always wanted to be. Some might call it destiny. How exciting is that! Now is your chance to realize your personal and professional dreams by working at something you love to do and become the very best person you can be.
Entrepreneurship will give you the opportunity to self-actualize. It’s a platform to become the ultimate you.
Congratulations on your decision to join almost 3 million Canadians who are also self-employed. It’s truly this country’s hottest career choice – for all of the obvious reasons.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
Perhaps we find the brevity of sunshine too good to pass up. Or maybe we are just working too hard during the rest of year and feel we deserve a rest. But it can be damn difficult to get anything significant accomplished with Canadians during the months of July and August.
During the warm months Canadians head to the cottage, the campground or the airport. We take our time returning phone calls. We skip out of the office early to enjoy a patio pint. We enjoy a number of cultural festivals and events unique to the season.
Whatever the underlying reason, Canadians definitely don’t engage in too much serious business in the summertime. And that can shock any startup entrepreneur hoping to earn money during this time of year.
I continue to set false sales expectations or July and August. I get all worked up trying to reach people who are on vacation, or who simply don’t want to do business right now. It’s not me – it’s them. Sure, I may connect with a few prospects and customers, but nothing really comes of it until September – when the real Canadian business year begins.
Instead of stressing over summertime sales, try to focus on another part of your business. Improve your website. Tidy up your database. Get your accounting records in order. Business planning is one of the best activities you can do during the slow (and frustrating) summertime season. Get a jump on your busy autumn by using downtime to plan your uptime.
This summer I’ll stress less by planning to sell less. I’ll work on my business rather than in it. And, I’ll do my best to enjoy more of the brief yet beautiful Canadian summertime season.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
Suppliers are crucial to your business success because what your business outputs greatly depends on the quality of its inputs.
If you have a supplier that isn’t living up to expectations or is delivering a sub-par solution (or an expensive one), your business – and your customers – may suffer.
Together, you and your suppliers can achieve success. They want a happy customer and you want a profitable business. That sense of partnership should make it easier for both customer and vendor to work together to explore powerful synergies to produce results.
Defining High vs Low Value Suppliers
Suppliers typically fall into one of these two categories: A high-value supplier to your business is one that delivers a customized solution or a solution that’s integral to your core operations. Think about your accountant, for example: poor financial advice or sloppy service can adversely affect your business success. It's not easy to switch accounting firms without disrupting your business.
Low-value vendors may be companies that supply commodities: or products you can get anywhere – like Internet access, office supplies or business card printing.
Focus on Best Value from Key Suppliers
Given the unique nature of your relationship with high-value suppliers, it’s important to view your vendor-customer relationship more like a partnership. You both want to succeed in business and are therefore more likely to seek win-win relationship scenarios. Open a dialogue with your high-value partners to explore:
Service levels. Are you happy with their performance? Is there room for improvement? Let the supplier speak, and you may discover things your business can do to make it easier for your supplier to shine.
Price. Pushing a high-value supplier to lower prices may actually cause the supplier to drop or reduce services that your business really needs. With your supplier, together dissect what’s in their pricing formula to identify product or service features you could live without.
Performance metrics. For longer-term, high-value relationships you’ll likely enter into a formal contract. It’s the perfect opportunity to add some key performance indicators (KPIs) to help your vendor to support your own business objectives.
For example, your Public Relations vendor may be asked to generate a certain level of media coverage per annum.
Added value. Ask your supplier for solutions they may be able to provide to support your business objectives. It doesn’t have to cost the vendor any money.
For example, your accountant may be willing to counsel your sales team on ways to reduce selling expenses.
Get the Best Price from Low Value Suppliers
Because they know you can get what they offer from a variety of competitors, low-value suppliers are usually willing to negotiate their prices in order to keep you as a customer. Help them to help you to save money by exploring scenarios that include:
Ordering in bulk. The more you buy from a supplier, the more wiggle room they may have on the price. Get a volume rate card from your supplier so you can identify order quantities that can save you money .
Long-term commitments. Your provider for mobile phone and Internet may give you the best price on their services if you are willing to commit to a multi-year contract.
Monitoring usage. You may find savings by simply reducing your order. Watch how much you consume of a particular product or service for a month to see if you can get away with using less.
It Never Hurts to Obtain Quotes
It’s just too risky to rely on any one company or person to supply your business. Keep a list of at least three qualified back-up vendors for everything your business uses. You may even decide to feed a small order to an alternative vendor so you can test their service readiness in case you need to use them one day. Prudence can pay.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
Your growing business will likely require some financing to achieve its business goals. Thankfully, there are many different products available to supply your business with access to needed cash.
Recall these different forms of financing requirements: there is capital for fixed assets (usually one-time, larger purchases like equipment or a building) and working capital (to cover operating costs such as rent, wages and supplies).
Your bank will offer a range of solutions to address a range of financing needs. Use this brief description of the more popular types of financing to better understand each option:
Term loans. Large amounts of well-placed capital can make a big difference to your ability to stay competitive. If you are planning to purchase fixed assets (like a new kitchen for your restaurant, or new computers for your design firm) then consider a term loan.
Bridge loans. This type of financing provides your business with a ‘bridge’ to get over short-term financing gaps while you arrange a more permanent solution.
Operating line of credit. These are usually a good, flexible option for businesses seeking short-term funding while they collect accounts receivable or move inventory. A line of credit acts as a cushion to help you manage cash shortfalls or seize opportunities.
Business credit card. A credit card provides a form of short-term financing because you can charge business expenses to the card and pay later. Many cards can be used without incurring interest charges as long as you pay your balance in full within a stated period of time. With many different options available, business credit cards also help you to separate your work and personal expenses to make year-end accounting easier.
Lease financing. Instead of buying office equipment, technology or manufacturing equipment, leasing is often preferable. Similar to a car lease, your business agrees to pay a specific monthly amount for the use of an asset.
Factoring. Large customer orders can squeeze cash flow as the owner tries to juggle the cost of fulfilling the order with collecting payment. To turn those accounts receivables into cash, you can sell them at a discount to outside lenders.
Your business will likely need to borrow money at some stage of its development. The more advance planning you do to understand your borrowing options, the better your chances of getting the financing you need at the best rate possible.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
As a small business owner, you likely have enough things to worry about. The last thing you want is an unexpected and substantial invoice for legal work. Yet most business owners are setting themselves up for just that kind of unpleasant surprise.
Legal Expense Insurance (LEI) is gaining popularity in Canada because it protects businesses from unplanned legal costs. It’s available for both consumers and business owners, providing coverage for legal advice, contract disputes, employment disputes, legal defence and more.
Imagine an ex-employee who files a wrongful dismissal suit against your business. While you may have done nothing wrong, you’ll likely pay thousands of dollars in legal fees to defend your business. And that can be devastating to any business on a budget.
“The average hourly rate for lawyers across the country is $360,” comments Barbara Haynes, Chief Executive Officer of DAS Canada. “And, a two-day civil action trial in Canada can cost $26,000 or more.”
LEI covers the legal costs involving in pursuing or defending a claim, such as lawyer’s fees, court fees and disbursements. Policies also include access to legal advice. Premiums are very affordable and typically cost less than the fees an average lawyer will charge for an hour or two of their time.
“In Canada there’s a new societal willingness to take legal action against companies, which can make things difficult or costly for any businesses that are too small to afford in-house legal counsel,” explains Haynes.
In Europe, she says, the largest volume of legal claims stem from employment issues. “There’s no reason to believe the story will be any different here in Canada,” comments Haynes.
DAS Group (www.das.ca) is recognized as the global market leader in Legal Expense Insurance, specialized in providing this unique coverage for more than 80 years. For more information, interested business owners may contact their insurance broker, locate a broker in their community, or visit the DAS website.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
You simply can’t be all things to all people. Small business success lies in serving one well-defined and lucrative target market.
Walk through any downtown business district and you’ll see storefronts for businesses that understand this power. They focus on a particular product and/or a particular target market in order to establish a meaningful brand.
For example, there’s a business in my neighbourhood that sells only vinyl records. No CDs, no DVDs, no Blu-ray, just vintage vinyl records for customers who appreciate that form of media.
Unlike big companies (think: Walmart), your small business likely doesn’t have a large marketing budget to promote itself as all things to all people. So we small businesses must decide which customers are most likely to buy from us – and focus our money, efforts and time on them.
Research to find your ideal customer
Find your target market by doing some homework in the form of market research. It may involve surveys, interviews, focus groups and product testing. Assess results to spot patterns – you’re looking for a group of people who are the most responsive to what you propose to sell.
For example, you may discover the best market for your hand-made toys are affluent parents who want the best quality for their children.
Test your findings
Customers often say they’ll buy a product or service if it’s offered, but behave differently when it comes time to pony up the cash and actually buy it.
You must test and challenge your research results against some actual sales. You’ll get feedback on price, quality, distribution, branding, and much more. Most importantly, you’ll confirm there is a market – before you launch or expand your business.
Prepare tailored communications
Once you decide to launch your business or offer something new, make sure all of your communications appeal to your target market.
Logos, taglines, websites, social media campaigns and marketing messages must resonate with your preferred customer – so ask them first what will make them stand up and take notice. Form a small advisory team of customers or prospects who are willing to comment on your communications materials as you develop them.
You can always add more customer categories when your business (and budget) grows. For now, keep calm and keep focused on your chosen customer niche. Your business will be stronger for it.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
I don’t like doing business at 7 a.m. in the morning. I’m barely coherent.
Yet I find myself anxious to get out the door and on my way to one of the weekly breakfast meetings of Business Networking International (BNI), this one called Business Connections One that meets in the Summerhill area of mid-town Toronto.
It was definitely worth waking up early.
BNI is a professional marketing organization specializing in word-of-mouth referrals. It’s a very successful, international for-profit organization that clearly makes money for its members.
It works like this: A typical BNI chapter consists of approximately 25 businesspeople. They meet weekly for a couple of hours, using that time to better understand the business of all members. (And yes, some chapters meet later in the day such as during lunch hours!). During the regular course of the business week, when one member encounters a prospective customer for another member, he or she can comfortably talk about that member’s business – which generates a referral.
Using tracking slips entered into a database, a BNI chapter knows exactly how much new business its members are referring to each other. One year, the chapter I know referred $2 million worth of business amongst members.
They avoid referral conflict by admitting only one member from each profession or business category – for example, only one accountant per chapter.
BNI members are responsible for producing results in the form of prospect referrals for other members. And if you don’t generate sufficient referrals, your membership may be put up for review.
It’s networking with teeth. Across Canada, there are more than 287 BNI chapters with 5830 members.
Ask a member to invite you as a guest, or just show up so you can learn more. For details, visit www.BNIcanada.ca.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
I’ve always intended to expand my business (I have a grand vision, you see) but now is not the right time. I know my business can get better, help more people, make more money, and become the business I’ve always wanted. I know I can do it.
But it’s not the right time for me.
I’ll take those steps when my kids are a bit older. Right now I’m too busy with swimming lessons, hockey practice and homework assignments. I’ve only got enough time in the day to maintain my business, you see.
When I have more money I’ll grow my business. Sales are a bit flat right now and it’s tax time. When things pick up, I can put some extra cash away to fund expansion –after we pay some bills, of course.
When I feel healthier I’ll work on my business vision. I really want to lose twenty pounds first – maybe thirty pounds.
I’ll grow my business once the economy improves. I’m worried about the eurozone and the U.S. market. It’ll be easier to grow my business once the world calms down a bit.
I’ll grow my business once I do some more research. I must make sure it will succeed, you see. More planning should provide the proof I need. Over the next couple of years I’ll complete additional market research, run the numbers again and talk to some more people.
Once these things align I’ll be able to work on the business of my dreams.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
Standing out from your competition is easier than you think. It’s all about customer experience, which often means simply adding a unique twist to what customers already expect from the other guys.
You can differentiate your brand and build competitive advantage by doing what you do better, faster or differently.
1. Be Better
Position your product or service as high quality and claim to be “the best”.
Dom Pérignon positions itself as the best champagne in the world. People willingly spend hundreds of dollars on a bottle. Whether it is or it isn’t ‘the best’ champagne is a matter of individual opinion – and really doesn’t matter because the branding moves millions of bottles.
2. Be Faster
Being quick can be a powerful business advantage. FedEx built its empire promising your shipment will absolutely and positively be there overnight. Franchising maverick Pizza Pizza satisfies hungry and impatient customers by guaranteeing delivery within 40 minutes or the pie is free.
If speed is important to your customers, go about building an efficient business that fulfils orders quickly.
3. Be Different
Look around at your competition and ask what you can do to set your business apart.
Menswear retailer Harry Rosen offers free lifetime alterations on their suits — a simple yet powerful perk that makes the customer feel special. And keeps them returning to the store.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
The professionals you pay to provide you with business advice and services likely cost a pretty penny. And so they should.
The most important paid advisors to your business will include an accountant, a lawyer, a financial planner, wealth management expert and perhaps a management consultant. These folks are well educated, highly skilled and in-demand individuals, and their advice and services will likely generate one of these results: save you time, reduce your expenses or increase your earnings.
For example, a meeting with your accountant to discuss strategies to expand your business into another province might save you years of trial and error trying to figure it out on your own. Worth every penny they charge.
Yet too many entrepreneurs waste everyone's time (and money) by being unprepared, inattentive, or just plain rude with their professional advisors.
Consider this refresher on some courteous best practices for both advisor and advisee.
Send your questions in advance
An advisor should insist on seeing the questions from the advisee prior to any meeting. It forces the advisee to prepare for the meeting and it gives the advisor time to think about answers.
If the questions are complex, the advisor may need time to conduct some research. It’s a waste of everyone’s time to think up questions during an appointment – to ‘wing it’ – and a waste of money.
Be prepared for the meeting by taking a few minutes to draft your questions in advance.
Ask specific questions
Some questions are simply too large (and therefore unfair) to ask an advisor to answer within a short meeting. For example, asking your lawyer, “How do I sell my business?” may not be easily answered within the few short minutes you have together.
Do some of the legwork yourself so the professional advisor can focus on specific questions that better utilize his or her expertise. For example, asking “How can I re-structure my business to make it easier to acquire?” might allow your lawyer to present specific ownership transition strategies.
Keep your appointment
Hey, things happen in a busy small business and meetings sometimes must be canceled or rescheduled – but it’s unacceptable to simply not show up because you believe the “customer” reigns supreme.
Being charged for that meeting (which is the advisor’s right) isn’t the issue: no show is a bad policy for building a positive working relationship with any businessperson – especially one as important as your key advisor. Professionals with any integrity won’t flinch at firing a disrespectful client, too.
Respect the time of the advisor (even if that advice is given free) by sending an email or placing a call to communicate your sincere apologies for cancelling the meeting – even at the last minute. That will go a long way toward retaining trust.
Roger Pierce is one of Canada’s top small business experts. He’s the founder of 12 businesses, co-author of the book Thriving Solo, and a writer for leading business publications such as Star Business Club, PROFIT online, YouInc and CBC’s Dragons’ Den website. Articles, blogs and videos produced by Pierce Content Marketing are used by national brands to win small business customers. LinkedIn
The period of planning, launching and growing a business is a wonderful time in your life.
