Archive for category Small Business
Taxes for Canadian Small Businesses and Their Owners – Advice on How to Manage
Posted by admin in Small Business, Taxes on December 14, 2011
Small business owners are a courageous breed. Their adventure in business is filled with many different challenges and surprises. One surprise for most of those just starting out as entrepreneurs is the mountain of taxes that they will have to deal with in their new positions.
The different taxes that the business owners have to manage are:
Source Deductions – when you begin paying employees, this money is withheld by the business owners from their employee’s wages for submission to the Government of Canada.
GST – when you begin selling your products and services, you will need to charge this tax on each sale transaction. This is money that is collected from your customers for submission to the Government of Canada.
Business Taxes – money submitted from the revenues of a business to the local municipal government. This is similar to property taxes on your home.
Provincial Taxes – the tax that is charged by the provincial government based on the profit of a corporation.
Federal Taxes – the tax that is charged by the federal government based on the profit of a corporation.
Personal Taxes – the tax that is charged by the federal and provincial governments on the income of the business owners.
While all of these taxes are important to pay, small business owners often have the challenge of trying to apply limited funds to unlimited taxes. This is especially true for companies that are struggling to become profitable.
The main rule to remember is this. Source Deductions and GST have to be paid first. In the case of these two taxes, the government considers the small business owner to be an agent for the government. The money that is collected is being held in trust by the business owner for the government. Ignoring this can lead to serious trouble. Read the rest of this entry »
Marketing Your Small Business Locally
Posted by admin in Small Business on December 14, 2011
Marketing a small business is much easier when you are working at the local level. Not as much changes in your local environment as it does in your online environment. And if you’re comfortable with handshakes, friendliness, and the environment itself, that’s a good thing. Still, you should not discount the importance of the digital age while employing the skills and techniques that have traditionally always worked. Start from the beginning. You’ve got a great idea for a business. You’ve put together the capital. Now it’s just a matter of finding the people-your friends and neighbors-to make you a success. Sounds easy, right? Yes, it is. But it can also be complicated.
1) Chambers of Commerce
These organizations are in most every town, and they are highly supportive of the small business person. Memberships can be expensive, but it’s a good place to start for potential investors and just an overall supportive environment. Chambers of Commerce frequently host events where others can mingle about their businesses and make new contacts along the way. Word of mouth goes a long way in a community, and creating positive buzz among the area’s business leaders is the best way of jumpstarting your earning potential.
2) The Online World
Increasingly more effective, the online world and Web 2.0 has made it possible for you to establish business contacts well outside your immediate area. But what about locally? How can it help you there? Quite simply, it can expand your business to the surrounding area. It can make it possible for you to reach 120,000 instead of just the 80,000 in your community. It can lead to expansion initiatives and even discount promotions that drive sales. Just think about Twitter, for example. You only need 140 characters to touch base with your followers. And in those 140 characters, you can give them all the info they need about your weekend sale.
3) Online networking initiatives that go beyond social media
Not only should you be marketing via Facebook and Twitter, but you should also be exploring guest blogging opportunities and local writing initiatives online. Get your content optimized for regional coverage. Connect with businesses that are enormously popular in your area and find some connection that you can make to justify a guest blog. Read the rest of this entry »
Small Business Loans and Bad Credit
Posted by admin in Small Business on November 14, 2011
Do a search about business loans and bad credit and you will see result after result touting some way or another where you can fool the banks and lenders into giving you a business loan.
Follow those results and for the most part you will only end up poorer (paying those companies or individuals a fee) and still not getting the business loan you want or need.
Banks and lenders use credit histories and credit scores as a time saving measure. You request a loan, they pull your credit. If your credit is bad or below their threshold, they don’t waste anymore time on your deal request and can move on to other deals that have a better chance of getting funded.
I deal with entrepreneurs everyday that complain about how their bank or a private lender just won’t look at their deal because they have bad credit. I constantly hear the same thing:
“Why won’t they just look at the merits of my business and not focus so much on my personal credit as it is my business that will be paying the loan back!”
My answer is always the same:
1) That is how the financial markets work, and
2) If you want to get approved based solely on the merits of your business then find the right business loan that focuses only on the merits of your business.
Sounds simple and it really is.
Yes, there are business loans (and other types of business financing) that either do not look at your credit at all or if they do, do not place much weight on it (great for those credit scores that are borderline).
Let’s look at three examples:
1) Accounts Receivable (Invoice) Factoring: Your business writes an invoice for goods already shipped or delivered to your customer but you have to wait 10, 30, 60 days or more to get paid. Then, factor those invoices and get your cash today so that your business can pay its employees, suppliers or to complete that next job. Read the rest of this entry »