Unless you’re an accountant you probably hate accounting. Heck I’d even bet that most accountants probably hate accounting, but it’s an essential part of any small business. Accounting – when done correctly – helps small business owners record transactions, prepare financial statements and tax returns, and also maintains order in their day-to-day business operations.

Unfortunately many small businesses are still relying on a shoe box full of receipts to prepare their records. The shoe box method can be dangerous because it can lead to creeping expenses, overdue accounts, cash flow shortages, data insecurity, added personnel costs, audit risks and even bankruptcy (eek!). These risks are very real, so I asked Kirk Simpson President and CEO of Wave Accounting why so many small businesses are still using this method.

“People don’t start small businesses because they love accounting,” he said, “They start them because they want to be a photographer, or real estate professional or a life coach.” For many small business owners accounting is the necessary evil that comes with running the business they are passionate about. And naturally, the tasks that small business owners hate the most are often the ones that they tend to neglect.

“The accounting process is very painful and very manual for small business owners,” he continued. Even with the help of online spreadsheets and expensive accounting software, many small business owners still find the task daunting. According to Kirk the problem with traditional accounting systems is that they aren’t intuitive for small business owners. “Many of the accounting programs still make you manually enter your expenses. At Wave, we atomize the process as much as possible so there is less manual entry.” Through partnerships with financial institutions, Wave will automatically import and categorize small business banking transactions into the software so business owners can see where they are spending their money.

Another problem with accounting software according to Kirk is that it makes small business owners keep their business and personal spending separate. ”The reality is that many small business owners use the same credit card on the weekends to buy diapers as they do during the week to buy office supplies.” Wave makes it easy for small business owners to categorize their spending based on whether it’s for business or personal use.”

The secret to the company’s widespread success and adoption is that they developed the service based on the accounting needs of small business owners (what a genius idea!). “We spent a lot of time developing the software based on how small business owners actually work, not the way an accountant, bookkeeper or software program tells them they should,” he said. With over twenty years of combined experience in the digital media and small business accounting industries, both Kirk and his co-founder James Lochrie strive to keep the perfect mix of utility and usability at all times. Maintaining this fine balance has helped them become a leading provider of free accounting software and is why thousands of small businesses are starting to use their service.

The key thing to take away from this is that accounting doesn’t have to be difficult. With the free tools that are available, small business owners can be more informed when it comes to running their business. Being more informed not only leads to better organization at tax season, but it also ensures that small issues are dealt with before they turn into major problems.

For more information about this topic, attend one of our free small business webinars.

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I work with new business owners who struggle with developing their business plan. The last thing they want to hear once it is finished, is that they will need to complete a plan every year to assist in the ongoing success of their organization. Most panic. They don’t want to have to go through that again; and fortunately, they don’t have to – exactly. But there are very sound reasons for developing an annual plan that serves to monitor and manage the ongoing operation of the business.

1. Developing an annual plan forces you to take an objective, critical, and unemotional look at the facts of your business – what is working and what isn’t.
2. It requires you to consider the gaps in your business based on a realistic assessment of your exisiting resources as well as your personal skill set and then plan to bridge the gap
3. An annual plan will be a powerful communication tool that encompasses your goals, objectives, and strategies to achieve success.
4. A plan serves as an operating blueprint for the year.
5. An annual plan can provide the appropriate linkages internally and externally to make sure goals are met.

Not all categories required for a business plan that is intended to attract capital need to be included in an annual plan that is designed to manage the business. Remember who the intended audience is and from that you can determine the best type of plan to write.

I always start my annual plan in October because I like to have ideas percolate for a while before committing to them for the following year. My thoughts are currently on paper and final decisions will be made within the next few weeks. As a business owner, I find the most challenging part of this exercise is objectively examining the numbers and choosing which activities stay in the mix for another year, and which have to be dropped. Sometimes I can be ruthless and other times I keep things on the menu of services just in case the timing will be better in the next year. As with so many aspects of running a business; annual plans are part science and part art – part prediction and part taking actions based on calculated risk.

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It seems like ‘Made in China’ is branded on just about everything we buy these days. From clothing, to electronics to furniture – so much of the manufacturing process is being conducted outside of Canada. And, while I’m not opposed to outsourcing, I don’t believe it’s the best solution for every small business.

Just ask Ricky Pacheco – Founder of Pop49 – a Mississauga based company that provides signs, point of purchase materials, and other promotional items for a variety of businesses. “99% of what we make is sourced from Canadian suppliers,” he said. “We support a lot of small businesses in Mississauga, and if we can’t find a small business to use here, we’ll expand our search to the GTA.” Ricky noted that he will use a Canadian company wherever possible, and he will only outsource to the US or China when a Canadian supplier does not exist.

Just as I was about to praise him for his dedication, Ricky insisted that his strategy isn’t all altruistic. “Logistically it just makes more sense. We have a lot of customers who need things in a rush and if we buy everything locally we have a lot more control over the final product.” This is understandable since there are a lot of risks with using international suppliers such as geopolitical instability, inadequate vendor capabilities, and decreased managerial control over things like product quality and delivery timing. For small businesses whose livelihood’s depend on exceeding the needs of their clients; the risks simply aren’t worth it.

Not only is it important to meet and exceed the needs of your client as a small business, but it’s also important to build relationships with them as well. “By maintaining control over our product we’ve built trust with our clients who know we always deliver on time and under budget,” said Ricky.

Meeting your obligations can help you build a reputation for being reliable. Being reliable and building trust with your customers can also help you get more repeat and referral business. As the 80/20 rule states, 80% of your business comes from 20% of your customers, so keep your current customers happy.

In the end it’s up to you to decide whether or not outsourcing is the right decision for your small business. But, before you do business with a company located across the Globe, you must consider whether or not the benefits outweigh the potential risks. Make your decision carefully as the future of your business may depend on it.

For more information about Pop49 or custom designed point of purchase materials please visit www.pop49.com.

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As a business owner you may not think you will be expected to deliver a dynamite presentation. After all, you are a business owner, not a professional speaker. However, there are times when entrepreneurs and business owners are called upon to speak about their expertise and then, you must do everything you can to instil professional confidence in your audience.

I recently attended a small business recognition event where several owners were asked to share insights about their experiences in business. Granted, the final speaker had a tough spot: after lunch, final speaker, dark room, powerpoint you couldn’t read, but still he could have controlled the one thing business owners do not have much extra of: time. He spoke almost 50% more than the original time he was allotted (90 minutes instead of 60). I can only say that there were people leaving throughout the presentation as they became more and more aware that he wasn’t going to stop until he was finished.

So what can you learn from this? Here are a few tips to remember the next time you are asked to speak.

1. You don’t have to be a professional speaker, but you do have to be a professional.
2. Bring useful tips and techniques of what has worked for you.
3. You are there to educate and inform; not sell.
4. Start and end on time. Okay, just end on time, if you have to choose.
5. If you really want to get better; listen to other speakers and learn from the good and the bad.
6. Every audience is different, even if the topic is the same.
7. Winging it (working without a net – or notes) is never a good idea. Improvising only reinforces amateur status.
8. If you are going to have a question and answer period, make sure both the questions and the answers can be heard.
9. Well placed humour is appropriate; joke telling rarely is.
10. End your speech (on time); don’t just stop talking, otherwise the audience won’t know if it’s over.

If you want to develop your skills as a presenter, you can always google the term “presenter” or “public speaker”, but before you get lost on the internet, decide what you want to learn about. Do you already know your areas of weakness as a speaker? Have you received helpful feedback that will support your development in this area? The amount of time and effort you invest in developing your presentation skills should always be proportionate to the amount of time you expect to be delivering presentations.

If you’re looking for more information about how to deliver an effective presentation, sign up for a free webinar on our website.

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We’ve all heard the phrase “starving artist”. Typically this description refers to some poor soul who is struggling to make ends meet while putting their time and effort into their art. When I think of the term, I think of someone who has the courage to risk everything and follow their passion.

Meet Claire Hall. After I interviewed Claire in her downtown Toronto art studio, I was inspired. Through her business, Claire helps people feel more comfortable in their homes by creating custom-designed artwork at an affordable price. “Many people want original artwork, but they don’t have thousands of dollars to spend on it,” she said. Claire’s solution is simple. Clients can submit a picture of their room through her website and she will create custom art based on their décor and budget.

When I asked her how she got her start she said, “I went to school for fashion-design, but I always loved to paint.” Claire’s hobby became a business when she decided to load some of her paintings onto Facebook. “After one day I had 20 orders, so I took it as a sign.” Shortly after, Claire left her successful career in the fashion industry to pursue her true calling.

Not long after that she ran into a problem that is all too familiar for many entrepreneurs – getting business. “Once people found out about my business they were really interested, but getting the awareness was tough.” That changed when she was featured in the Toronto Star earlier this September. “The day the article appeared, I received over 1,500 visitors to my website, 200 emails and 100 orders.” The article was so effective that she now has a 50 person waiting list, and the orders keep coming in.

This story not only illustrates why you should follow your passion, but it demonstrates how small businesses can profit from free publicity. When your submit your story to news outlets, you aren’t the only one benefitting as journalists are always looking for new and interesting content to write about. Additionally, if Claire purchased an advertisement in the Toronto Star there’s a good chance that most readers would have skipped over it. Why? Because traditional advertising just can’t compete with the credibility that public relations can offer. Most importantly PR is free! Free publicity can work wonders for businesses with a limited advertising budget. So get your name out there by submitting information to newspapers, social news websites, or to journalist support sites like Help A Reporter Out (HARO) – and you might be surprised at what happens next.

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Entrepreneurs are a vital part of many countries’ economic strategy. One idea from an innovative business person could launch a multi-million dollar company or generate a smaller business that becomes a fixture in the community and creates jobs for local residents. No matter the size or the scope of their businesses, entrepreneurs make a significant contribution to the overall wellbeing of a country’s growth plan and for one week each November, the world acknowledges their role.

Global Entrepreneurship Week, launched in 2008, is the world’s largest celebration of the innovators and job creators. These are individuals and groups who launch startups, bring ideas to life, drive economic growth and expand the human condition.

Global Entrepreneurship Week inspires and supports people to explore their potential as self-starters and innovators. Activities range from large-scale competitions and events to intimate networking gatherings, designed to connect participants to potential collaborators, mentors and even investors—introducing them to new possibilities and exciting opportunities. Such events are hosted on a local, regional, national, and international level.

Global Entrepreneurship Week also helps to “map the entrepreneurial ecosystem in 115 countries – with nearly 24,000 partner organizations planning more than 37,000 activities that directly engage more than 7 million people. It is about unleashing ideas and doing what it takes to bring them to life—spotting opportunities, taking risks, solving problems, being creative, building connections and learning from both failure and success. It is about thinking big and making your mark on the world—doing good while doing well at the same time.” www.gew.org

As an entrepreneur who contributes to the economic growth and success of your global community, take a few minutes and look into the events that may be taking place near you and encourage your colleagues to join in the celebration.

On Wednesday, November 16, I will be the opening speaker at an event that recognizes the importance of entrepreneurs in my region. There are several speakers on the program as well as an opportunity to network with other business owners. Taking time to reflect on what it takes to be an entrepreneur is very valuable to the sustainability of our enterprises. I look forward to sharing my thoughts on The Three Cs of Business.

For more detailed information on Global Entrepreneurship, visit www.gew.org

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Mentoring has changed over the past few years. Historically, the relationship was based on what the mentor could give to the protégé, but it is understood now, that the relationship is most effective when it is reciprocal. As business owners we may seek out someone to serve as our mentor who is also an entrepreneur in our sector, or we may consider the outside perspective of someone in another sector. In either situation, there are certain attributes you should consider when making your choice.

Here are the top 10 qualities which are essential in an effective mentor:

1. A Desire to Help
Individuals who are interested in and willing to help others. They have a willingness to share their skills, knowledge and expertise. They are also respected by colleagues and employees in all levels of the organization.

2. Have Had Positive Experiences
Individuals who have had positive formal or informal experiences with a mentor tend to be good mentors themselves.

3. Good Reputation for Developing Others
Experienced people who have a good reputation for helping others develop their skills and will take a personal interest in the mentoring relationship.

4. Time & Energy
People who have the time and mental energy to devote to the relationship.

5. Up-To-Date Knowledge
Individuals who have maintained current, up-to-date technological knowledge and/or skills. They set and meet ongoing personal and professional goals.

6. Learning Attitude
Individuals who demonstrate a positive attitude and are still willing and able to learn. They should also be someone who sees the potential benefits of a mentoring relationship.

7. Demonstrative Effective Managing/Mentoring Skills
Individuals who have demonstrated effective coaching, counseling, facilitating and networking skills. This includes the ability to provide guidance and constructive feedback.

8. Willing to Listen
Individuals who serve as listening and sound boards for the protégé’s ideas, dreams, needs, & concerns. Being an entrepreneur can be very lonely and often the mentor serves as a listening ear.

9. Able to Protect Confidence
Individuals need to be able to establish & maintain the mutual respect & trust needed for the risk-taking necessary for learning & professional growth.

10. Enjoys Celebrating
Individuals who willingly recognize accomplishments, affirming growth, & building professional self confidence.

Not everyone can be an effective mentor. There must be a willingness, enthusiasm, and commitment by both parties for the relationship to be effective. However, when you have the benefit of a passionate mentor, you will find the results showing up in your bottom line.

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When it comes to marketing, many small businesses have trouble measuring their investment. Sure you could always advertise in the local newspaper, or hire someone in a guerilla suit to stand on a busy intersection, but how do you know if your marketing efforts are paying off? This question becomes even more important when you’re a small business with a limited marketing budget.

Small business owners increasingly want to know how they can get the most of their marketing dollars. To answer this question we look at some of the tools Google is offering to help small businesses with marketing – many are free! Here are the top 6 Google tools that can help maximize return on marketing.

1. Ad Words – Allows you to target specific keywords that will appear on the right hand side of a Google search in the sponsored links section. Your ad words will also appear on Google’s partner sites as advertisements.
Google Adwords.

2. Keywords – You want to pick key words that are specific, not overly competitive, and relevant. The Google Keyword tool gives you this information on a local, national or global basis. Google Keyword Tool

3. News and Alerts – If you want information specific to your industry set up a Google alert. These alerts email you a list of news worthy items so you always have content for your social media accounts and so you can stay on-top of your competitors and your brand. Fresh and interesting content can make you a knowledge expert in your industry and may even provide content for journalists.
Google Alerts or Google News

4. Reader – This tool helps you access various blogs in one place allowing you to easily find, read, and comment on them. By commenting on other blogs you can attract readers and get ideas for content.
Google Reader for more.

5. Places – A Google listing helps people find your business online. If you enter the right keywords, people in your area will easily be able to find you through search results. You can also add media to make your listing more interesting.
Google Places

6. Google + Button – This button not only allows users to share content from your website, but more importantly lets people promote your page in Google search results. According to a recent study by HubSpot, websites that use Google’s +1 button got 3.5 times more traffic than websites who didn’t use the button.
Google Plus

For even more information on this topic, attend one of our free small business webinars.
Source: http://www.hubspot.com/

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Success in business is not just about what you do—it’s also about who you are. The most successful business owners go into businesses that are aligned with what they want out of life. To get what you want out of life, you have to set personal goals.

What do personal goals have to do with your business? Every- thing!

If your business helps you to create a satisfying and success- ful life, you will love your business. You will look forward to going to work. Your enthusiasm will be contagious. It will be caught by your employees and your customers. Knowing your personal goals and aligning them with your business vision is a key step to business success.

Make a big list of goals you want to achieve in your life. What benefits are you seeking and why do you want them? By knowing exactly what you desire in life you are better able to plan your business.

Personal goals should cover every part of your life:
• Health and fitness goals
• Family and home goals
• Educational and spiritual goals
• Charity and community goals
• Travel and social goals, and
• Financial goals.

Once you have identified your personal goals, write a short summary to define your success. Here’s an example:

“I want to live my passion which is staging homes for sale on the real estate market. I want to train others how to run my business so I can travel the world with my family. I want my business to pay me $10,000 a month and be worth $1,500,000 when I sell it by the time I am 60. I want enough extra money to support my favourite charities. I want to work from home two days each week.“

The people who set goals are the people who become successful. Your personal goals should be specific, simple, measurable, time based and challenging. Try to prioritize your goals within two, ten and twenty-five year timelines. Commit to your personal goals by sharing them with people close to you.

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1. Excellent communication skills

2. Passionate about what they do

3. Ambitious and goal oriented

4. Committed to the business—prepared to invest the time, money and energy it takes to develop a company

5. Willing to take risks

6. Continuously embrace opportunities to improve, personally and professionally

7. Exceptional listeners and learners

8. Good people skills

9. Problem solvers

10. Strong work ethic and self-discipline.

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