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Tax time can be an incredibly strenuous time as you deal with the busy spring and summer months, while at the same time trying to gather, organize and generally find anything that is income tax related. Type in “Small Business Tax Tips” and you will find an overwhelming list of literature designed to keep you in line throughout the year.
In my experience, here are the top three things that you need to keep in mind as a sole proprietor:
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June 15th may be the deadline for when you need your taxes filed, but don’t kid yourself. Any income tax owing starts collecting interest as of April 30th. If there is one thing you do not want to pay interest on – it should be taxes!
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The Shoe Box drop. If your tax time routine includes a shoe box stuffed full of receipts in a jumbled mess – make 2011 the year of change. Develop a system (daily, weekly) of going through your receipts, making sure the amount, vendor and other important items are clearly marked. If you can’t make sense out of your receipts throughout the year, how can someone else?
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Be ready for the tax man. I see many business owners have amazing years as they grow, but often forget that increased taxes are a reality of that success. Whether you make instalments throughout the year, or set aside appropriate HST in a savings account – have a system.
What is your best practice?
Brian
Posted on April 19, 2011 by Brian Aalbers
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Last week I had the privilege of attending the Business Achievement Awards at the London Convention Centre. Each year these awards are given out to many deserving finalists, all of whom operate right here in London. Throughout the awards ceremony, we are able to see exactly what makes each business successful in their respective fields. From ground breaking video games, state of the art trading systems, and immaculate quality records – London has it all!
Want to see what makes them so great? Check out the winners and here:
Business of the Year (Large Business Category) --Digital Extremes
Business of the Year (Medium Business Category) -- East Park Golf Gardens
Business of the Year (Small Business Category) -- Stiris Research Inc.
Quality Award -- CT Innovation
Environmental Leadership Award -- TD Canada Trust
Excellence In Human Resources Award -- Trojan Technologies Inc.
Innovation Award -- Cyborg Trading Systems Inc.
How can Libro help you make this list?
Brian
Posted on March 28, 2011 by Brian Aalbers
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Saving money = happy retirement right? For a small business owner, retirement strategies are not quite so straight forward. No doubt you have heard that you should be “paying yourself first”, but does this apply when your business needs cash to grow? Putting $10k into a personal RRSP can be a tough decision when your business is expanding & working capital is at a premium. Then again, the past years have been extremely harsh on many small business owners, so have $10k available might be a challenge in itself.
So how does a business owner plan for retirement? Unfortunately, there is no one-size-fits-all answer, but to start – what does retirement look like to you? Here are two situations to consider:
- If you plan on stepping aside & selling your entire stock in your business in one quick swoop, you may set up a system of paying yourself now. The sale of any business is dependant on economic conditions, solid internal systems, concrete contracts & supplier agreements, key employees, and a host of other variables. These do not always line up perfectly with your 65th birthday.
- Alternatively, you may be planning to play an active role even after retiring. You may sell a portion of your ownership, remain as paid staff, or have preferred shares set up to help fund your retirement. In this case, you have more flexibility in determining your “step down” date, and RRSP’s may be not as high on the priority list.
What is your retirement plan?
Brian
Posted on February 25, 2011 by Brian Aalbers
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Last week I encouraged everyone to shy away from rash decisions and focus on the long term, but if you still find yourself googling “economic recovery” each afternoon I have something to help calm your fears.
Wednesday February 16, Libro is hosting a FREE Strategies For Business Success Seminar! The event runs from 7:30am until 12pm at the Four Points by Sheraton at 1150 Wellington Road South right here in London. What’s in this for you? The free full buffet breakfast starts at 7:30am sharp, with the following speakers set to feature:
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Peter White from the London Economic Development Corporation, will be delivering an economic update on London entitled: “Recession- Shift- Recovery”
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Mike Seabrook from the Airport Authority will tell us how London is making a splash on the international scene with “International Air Freight Opportunity –London’s Future Prosperity”
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Melissa Schenk from A Channel & MS2 Productions will be focusing on applying Social Media to our everyday marketing with: “Media Shift: From Campaigns to Conversations”
Click here to sign up!
Out of town on the 16th? Catch Melissa again at her Social Media Boot Camp in St. Marys, Listowel & Stratford February 22-24th. Click on the links for more information!
Brian
Posted on February 4, 2011 by Brian Aalbers
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Check any website and you will notice a large amount of “economic forecast” articles trying to decipher whether we have weathered the storm or if the worst is yet to come. The average London home price is up again to $246,700, but the federal government is introducing new mortgage lending restrictions. Building permits for the city increased slightly to 307, but unemployment is still hovering near 9%. Confused? Rather than focus on who’s right, focus on your own future.
I can’t help but remember two (of what I consider to be) basic principles in economics:
- People seem to buy when it is expensive, and sell when it is cheap.
- The economy will return to normal in time.
How does this apply to business?
- If I sold off my higher-risk investments as they tanked almost two years ago, I would have lost money. My market value again exceeds my book value, and I should have bought more when it was cheap! Resist the urge to dump essential customer service perks, and under no circumstance should you stop marketing. There are still opportunities out there.
- Stick to your long term plan – the past is the past. Sure, you may need to make minor adjustment given the immediate circumstances, but dig in your heels and push forward.
Everybody is an expert on the economy, but only you know your business.
Brian
Posted on January 25, 2011 by Brian Aalbers
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As a business owner, you are required to balance more than your fair share of responsibilities. Let’s face it – you simply can’t be good at everything, but you do your best to improve where you can. If you can’t master all – master some. Here is what I look for:
- Focus on the Keys. If there were three things that were essential to your business, what would they be? Accounts Receivables, Inventory Turnover, and bank balance? You can’t monitor everything constantly, but having a system to check the pillars helps create stability.
- Befriend Financials. Understand how to read an income statement and balance sheet. When your business is growing (or even if it isn’t), it will show up in these quite quickly. Need help with this? Insert your Libro coach here.
- Make Plans your Pet. I am all for planning, but 5 year business plans are too long. Ex. A plan developed in January of 2006 would probably not include any Social Media. It needs to be a living organism, and it won’t survive if unattended for 5 years. Revisit it every 6 months to update short & long term goals.
What would you put on this list?
Brian
Posted on January 17, 2011 by Brian Aalbers
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We all know that money can be tight from time to time. January can be a notoriously slow month, as it takes the general population awhile to awaken from a month of over spending (and indulging) and realize that life does continue after the holidays. As a result, I see the cash flow for many small businesses suffer in the early parts of the year. Receivables tend to trickle in over the next 30-60 days and this can result in a post-holiday stress out. Account balances dip and are even pushed into being overdrawn -- are you prepared for this?
If not, make this your resolution for this year. Need help?
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Talk to us about our BusinessLine. A flexible, low maintenance overdraft that takes the worry out of that receivable that was “in the mail” but never did show up.
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Talk to us about our Business Operating Line. An operating Line of credit that finances your day to day business activities with a more long term mindset.
Cash flow shortages happen to everyone, but the ones who are prepared get through unscathed.
What other issues stress you out in the beginning of the year? Please share them here – maybe we can help.
Brian
Posted on January 6, 2011 by Brian Aalbers
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Tis the season to….well, do everything. Between the personal events we all need to attend and the growing demands of your business you are likely being pulled in 20 directions at once. But don’t give up – just give.
If there is one thing not to overlook during the busy Christmas season, it is the 80/20 rule. 80% of your business comes from 20% of your customers – and now is the time to reward them for it. Want to give them a gift?
Here’s how:
- Make it quality. Nobody wants trinkets and trash because they are useless. If you are thinking of giving them a tiny pair of scissors with your logo – don’t. When is the last time you needed a small pair of scissors?
- Make it specific. Nothing says impersonal and generic like a gift someone cannot use. You see your top customers frequently – what do they like?
- Make it work. Slow year? It would have been slower without that 20% so make the sacrifice and find it in your budget. Rewarding loyalty should be top of mind this year.
Christmas only comes once a year – your customers return month after month.
Below - feel free to share how you reward you 20%.
Brian
Posted on December 15, 2010 by Brian Aalbers
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As an Account Manager at Libro, I am often looking for ways to increase my presence in the community. Chamber events, Business after Five and other community events are key to expanding my networking group, but the best way to make new connections is to partner with existing ones – or centres of influence.
Centres of influence are, well, exactly that. They are individuals who are masters of their industry, highly recognizable, and excel at developing mutually beneficial relationships. Invite them to a dinner event, introduce them to a business colleague, or better yet – meet them at their business. Birds of the same feather tend to flock together – so why not use this to broaden your business relationships? Chances are they can introduce you to like minded people who will do nothing but increase this ripple effect.
So go ahead – make a list if you need to. Who are your centres of influence?
Brian
Posted on December 2, 2010 by Brian Aalbers
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“All things being equal, people will do business with, and refer business to, those people they know, like and trust.”
Often, as I leave networking events, I wonder if/how I will be remembered. These networking events can house hundreds of people, and everyone leaves with a fistful of business cards. I may have worn my new dress shirt, but that is hardly what I want them to remember me for. Here are a couple of BOLD things I try to put into practice:
Be There: If you are talking with someone because the alternative is standing alone – you’re not authentically there. People pick up on that.
Offer Something: Contribute to the conversation, make a follow up commitment or set a meeting date. Creating a memorable connection involves ongoing communication.
Lead with questions: What drives you each day? How have you set your business apart from the rest? These are questions specific to your newfound friend and quickly establish memorable conversations.
Don’t exit unnoticed: Do you leave your friends house without saying goodbye? If you connected with someone during the event – offer them a farewell before you leave!
How do you want to be remembered?
Brian
Posted on November 24, 2010 by Brian Aalbers
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Networking. It may be three syllables, but the only one you need to pay attention to is the middle one. Work. You can show up to numerous events and drop hundreds of business cards, but without the right type of work, it doesn’t accomplish much.
So what is the right type of work? Here are four things that I find useful:
- Pick & Plan. Don’t show up at every event simply to be there. Pick events that have the right people there – your type of people. Then plan. Plan what you’re going to say and who you’re going to say it to.
- Be the Hero. When you see someone standing alone and nervous, introduce yourself and make that first connection. Now you have someone to mingle with.
- Drop the Pitch. Nobody wants to hear your sales pitch ten seconds after they meet you. Networking is about relationships, not infomercials. You will do business when the time is right.
- Give First. Be that nice person. Nobody expects it, so when you do – it speaks volumes about who you are and what your relationship could mean to this person.
Those are my thoughts. How do you (net) work?
Brian
Posted on November 18, 2010 by Brian Aalbers
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Driving organic growth is probably top of mind for all new & existing small business owners, and rightly so. New faces are the direct result of your hard work and keep you getting up in the morning. You got them in the door, kept your interact machine busy all day, and left with a smile on their face. Job well done? Not yet.
Satisfying the immediate needs of customers is the status quo – uncovering their future needs is what will keep people impressed & coming back.
The other day I drove 30 minutes to my dealership to get my oil changed instead of driving 10 minutes to the local vendor as a direct result of this. 3 years ago, I mentioned in passing to an acquaintance I needed a new car in a couple of months. I had no idea she worked at the dealership, and one month later she sought me out with 3 cars she thought may fit my appetite.
Sold.
Brian
Posted on November 4, 2010 by Brian Aalbers
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My wife and I just got back from a trip to Europe, and the difference between the currencies was quite high. $100 Euros would cost us $140 Canadian, so each time we looked to buy something we had to think “what is this purchase really costing us?” Needless to say, we tried to keep our spending to a minimum.
Photo By joiseyshowaa
Getting back home, our cable company called us wanting to basically double our channels for $20 extra each month. Reasonable? Yep. But do I really want more time away from home renovations, the grass that already needs cutting and our gym membership? All purchases have a stated cost – but what’s the true cost?
Brian
Posted on October 28, 2010 by Brian Aalbers
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Mom always said “don’t bite off more than you can chew”. Odd how this can apply to growing your business too. Ideally your business will grow in manageable chunks, but no matter what industry you are a part of every business eventually comes across it.
You know what I mean – that one big opportunity. I’m talking about that one project with huge potential and thick profit margins. Larger than anything you have every taken on before, it would push your resources and knowledge to the limit – and would increase your annual sales by almost a third.
Insert mom’s old saying here.
Old sayings stick because they passed the test of time. Do you have the operating capital for this project? The workforce? The time? Can you handle not being paid for 90+ days? Too often I have seen large opportunities virtually paralyze a growing business. If this opportunity will jeopardize your ability to keep your commitments to your existing customer base, you could be in great danger of losing them.
Take your bite, but make sure you can chew it.
Brian
Posted on October 21, 2010 by Brian Aalbers
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Many times each month I sit with potential new business owners who are looking for start up funds. Filled with enthusiasm and eagerness to get their idea in motion, we discuss the idea, product and potential. I must admit, a tiny part of me always wants to jump right in with a blank cheque, but my position requires a certain degree of restraint. All looks well until the dreaded question: Do you have a business plan prepared?
More often than not this question sucks the enthusiasm right out of the room, almost creating a permanent dent in the discussion. A realistic business plan is absolutely vital to an application, as good ideas are only theory until someone has the know how to turn it into a profitable enterprise.
In order to begin helping someone, I need to know that they understand both the idea and implementation – ideas are the fun part, but the implementation takes work. A business plan is much like a resume for a job interview – it creates an impression – an impression that Libro always hopes can be backed up by character and drive to succeed as we progress. In life and in business, first impressions are everything - just like a plan is.
Brian
Posted on October 13, 2010 by Brian Aalbers
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Hi I’m Brian Aalbers! I have been working in the financial sector since 2003 and for Libro Financial Group since 2006 as an Account Manager at our London North branch, just across from Masonville Place.
As an Account Manager, I work with business owners to help them identify their goals and work with them to achieve them. Day to day I help out with things like start-up loans for a new business ventures, mortgages on commercial properties, setting up payroll for employees, operating loans, or savings plans for businesses. Every day is very different, which I love. I’ll be blogging about topics that are relevant to small business owners in southwestern Ontario.
I hope you check out the Tips & Tools section of the website. There are some great resources there for business owners that I refer my owners to all the time. You’ll find a link there for Business Banking @ Canada’s Credit Unions. This is a great website with additional resources. You’ll notice a book offer for “What Would Harold Do?” on the site. If you’d like a copy of the book just let me know, I have a limited supply available free of charge.
I’m looking forward to this blog and sharing information with all of you. If you ever have questions or topic suggestions just let me know.
Brian
Posted on October 1, 2010 by Brian Aalbers
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