The Many Hats of Self Employment

Being self employed comes with many benefits.  You can sleep in, work in your pyjamas and go shopping in the middle of the day.  You no longer have to report to a boss who doesn't really understand what you do or deal with mindless workplace politics.  It all sounds wonderful, but unfortunately there are also many challenges.  Small business owners have to deal with uncertainty and risk.  They need to be disciplined and deal with the many demands that being self employed can impose upon us.  In the early stages of self employment, most of us have to take on the responsiblity of fulfilling the administrative functions that you find in a more established business. Some of the skills that you need to develop are:

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8 Inexpensive Ways to Build a Client Base

Perhaps the most daunting aspect of starting a new small service based business is building a client base.  On the other hand, there is nothing quite so exciting as getting those first few clients. 

When trying to generate new business, it is important to cast a wide net as you never know where potential clients may be lurking.  There are many ways to build a client base, even with limited resources.  I have outlined some below:

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24 Cost Effective Ways to Promote Your Small Business

 

After thinking long and hard you have decided that is time to launch your own business.  You have a great product or service, you’ve come up with a compelling business name, all the paperwork has been filed and you have picked out the perfect location (or setup a snazzy new home office).  Everything seems to be set for your new independent life as a business owner.  And then you realize that nobody except your spouse and cat knows about your new venture.   So, how do you bring your fabulous new product to your target market's attention?  One way is to use the “build it and they will come” approach.  This is usually not particularly effective (even Google, who historically launches products with little fanfare, could benefit from a little more marketing).  The other, more effective approach is to get out there and promote your business.  Of course in the initial stages, marketing budgets tend to be miniscule.  On the other hand, many new business owners have time on their hands, while they wait to be deluged by orders.  Below is a list of 25 cost effective ways to promote your small business:

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7 Qualities of Highly Desirable Clients

“I want to create a rival to Twitter. So I want it exactly the same except where it says What’s Happening? I want it to say How are you feeling?”(From the very funny "Clients from Hell")

This pretty much sums up the type of client we don't want - ridiculous expectations, unimaginative and just plain clueless. Conversely, there are some clients that are a pleasure to deal with.  Ones that ask great questions, and make us feel happy to have chosen the entrepreneurial route.  The more important of these are listed below:

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GST and QST Considerations For New Business Owners

The Goods and Services Tax or GST is a consumption tax that is charged on most goods and services sold within Canada, regardless of where your business is located.  Subject to certain exceptions, all businesses are required to charge GST , currently at 5%, plus applicable provincial sales taxes.  A business effectively acts as an agent for Revenue Canada by collecting the taxes and remitting them on a periodic basis.  Businesses are also permitted to claim the taxes paid on expenses incurred that relate to their business activities.  These are referred to as Input Tax Credits.

Does Your Business Need to Register?

Prior to engaging in any kind of commercial activity in Canada, all business owners need to determine how the GST and relevant provincial taxes apply to them. Essentially, all businesses that sell goods and services in Canada, for profit, are required to charge GST, except in the following circumstances:

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4 Metrics to Help Improve Your Small Business Cash Flow

In a recent study by TD Bank Financial Group it was determined that one of the primary challenges facing small business was cash flow (The other two were managing clients and government red tape).  This probably comes as no surprise to most small business owners, especially in the early stages.  Of course, the simple answer to this problem would be a limitless source of cash.  (Of course if we had unlimited funds, we may not find it necessary to endure the trial and tribulations of business ownership).  Since this is usually not possible, we need to do the next best thing: analyze our cash flow requirements and find the most cost effective and easily available solution for any shortfalls.  Even the most successful business can find itself shutting its doors if it is not able to manage it's cash flow needs. 

Below are 4 financial metrics, which if monitored regularly, can actually help improve your business' cash flow:

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3 Great Resources For Your Facebook Business Page

 

Every small business should consider setting up a facebook business page.  Except for your time (which is an opportunity cost), there are no explicit costs to setting up a page, and the rewards can be significant.  Keep in mind that, after you have set up your page and have found 25 people to like it, you are entitled to a "vanity" url (mine is http://www.facebook.com/montrealfinancial) This, in addition to being kind of exciting, is akin to reserving a domain name for your business.

Below are three articles that provide essential guidance and resources to anyone looking to either setup a business page for the first time, or enhance their existing page.  It is important to note that a facebook page does require regular updates, and  interaction to act as an effective marketing tool.

 

 

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Noteworthy: August27, 2010 - Email Signature, Best Investment Advice, Client Referral Incentives and Questions for Small Business

Do: company, website and business twitter account

Dont: personal details, random quote

To increase your net worth - pay off debt that carries an interest rate greater than 5%, don't be afraid to not invest in times of uncertainty and take advantage of cash discounts.

Discounts, gift certificates and a simple thank you are examples of incentives to get existing clients to provide referrals.

For maximum effectiveness of online marketing strategies, owners of small businesses should (among other things) be checking search engine placement for their business, examine their sources of revenue (are you diversified?), and use social  media to their greatest advantage.

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