Category: Research and Development

Feature Fatigue and your Small Business

Posted by Winflow – June 21, 2011

When you think about product strategy for your small business it seems evident that you have to offer customers something your competitor does not. Many businesses are taking this fact to mean they have to introduce a slew on new features of their product that the competition doesn’t offer. Ever considered offering a simpler choice? With all of the options available to consumers many are starting to feel something known as “feature fatigue.” This is when there are so many functions jammed into one product that the product becomes confusing and difficult to use. To avoid feature fatigue in your small business, consider the following:

  • Only add complexity when your customers need it. Just because you competitors have added features to their product, doesn’t mean you have to add them yours. You should only worry about adding features if your sales are suffering from a lack of features.
  • Focus on your core feature. Figure out what your product does and work to make sure it is operating at its best. It is better to have a product with fewer features that easy to operate than a confusing product with a lot of unnecessary features.
  • If you are thinking of adding new features, make sure your customers understand the initial product. Ensure your sales staff is selling how easy-to-use your product is and helping customers that don’t understand how to use your product.
  • Customers place value on accessibility, fun and usability of a product. Ensure you are developing a product that covers all three.

For your small business needs, contact the Winflow Financial Group at 1.800.956.6897.

How to Value a Restaurant

Posted by WFG – June 20, 2011

Valuing a restaurant for sale can be one of the most challenging aspects of the job. It should be treated more like an art than science and there are established methods that can be completed. These methods include asset valuation, income capitalization, liquidation value and comparing the prices of similar restaurants.

  • Start by working on the owner benefits. This is the pre-tax profit amount that the owner will be expected to make from the restaurant. This will depend on a number of aspects including location, reputation and industry trends.
  • You’ll need to work out if the owner is essential for the restaurant to be successful. Some restaurant customers decide to eat there because of the owner. And when the owner leaves, so do the clientele. This means the owner holds some value.
  • Work out the location value. Compare the real estate prices for the other local businesses and try to notice trends. Is there a cinema across the street? Are there construction works? These factors will affect the value of a business.
  • The last step is to consult your accountant. Asking another professional for a price evaluation will see if your estimation is close to the mark. And then you can both work on an agreement.

For more information on company value speak to the Winflow Financial Group.

Utilizing Customer Data

Posted by Winflow – June 16, 2011

In order to grow your small business it is important to pay attention to your customers’ needs. Many small business have tons of research and development (R&D) data but don’t know what to do with. If you’re having trouble determining how to use customer data to grow you small business, consider the following:

  • Keep you database of customer information up-to-date. Unorganized data is more likely to end up wasting away in a computer system. There are several data management systems you can invest in to help you organize your customer data. These are known as customer relationship management (CRM) systems.
  • Follow legal procedures. There are a number of legal procedures to be aware when collecting customer data. For example, you cannot take contact information from a social networks, such as Facebook, to use as market research.
  • Protect your data. Take pains to protect your data from hackers because accidently disclosing data could lead to lawsuits.
  • Analyze your exisitng data. Look for trends that can help you grow your small business like purchasing history and where customers come from. This will help you determine successful marketing techniques.

For your small business needs, contact the Winflow Financial Group. We can be reached by:

  • Phone:
  • Email:info@winflowfinancial.com
  • The free consultation request form on our website.

 

Marketing Focus Groups

Posted by Winflow – June 14, 2011

Focus groups, though controversial, can assist in marketing and growing your business. A focus group is a group of around 10 people from a specific demographic. A facilitator guides a discussion and members of the focus group are encouraged to answer honestly. Through their answers, trends will emerge. You can use these trends to come up with a solid marketing plan. If you are considering holding a focus group for market resarch, consider the following:

  • Determine your goals ahead of time. If you know what you want to get out of the research group, the moderator can lead the discussion in that particular direction when things start to get off topic.
  • A downside of focus groups is that participants may feel pressure to agree with the group, producing biased results.
  • Costs can vary when running a focus group. It all depends on whether you have decided to hire an outside consultant and pay your participants.
  • Hire a screener or screen candidates for the focus group. You want to best representation of a specific demographic so be particular on who gets selected to participate in the focus group.

To learn more about conducting a market focus group, read this article.

For your small business needs, contact the Winflow Financial Group at 1.800.956.6897.

Operational Risk and Mutual Funds

Posted by WFG – June 14, 2011

Almost all investments carry some form of risk. These come in many different variations and mutual funds have what’s known as operational risk. This method of risk occurs from failed internal processes, systems, people and from external events that manage the mutual funds. It has been suggested that it holds a variety of meanings and many banks adopt their own personal style.

The mutual funds are a collection of equities, money market instruments and bonds that follow the investment objective. This is outlined in the prospectus, which is required to be filled with the Securities and Exchange Commission. The prospectus also outlines the company history, fees, cost and risks.

It’s important to note that operational risk varies depending on the industry you’re looking into. There is a lower operational risk with industries that hold minimal human interaction. Many companies state that operational risk is unavoidable and is simply the cost of doing business. And though this may be the case, companies are now collecting data on operational losses and use this to calculate how much may be avoided in the future. Without these methods companies will continue to make the same mistakes and see losses that may have been evaded.

For more information visit Winflow Financial Group and discuss operational risk with professional consultants.

 

Benchmarking and your Small Business

Posted by Winflow – June 13, 2011

Benchmarking is a tool used for evaulating your business based on analyzing the best practices within your industry. Benchmarking can help you develop strategies to ensure your business is running in the most productive way possible. If benchmarks indicate that you are paying above the norm for a particular service or contract, it may be time to re-negotiate. Some resources for benchmarking include:

  • Average collection period tool. This tool will help you determine how long it takes for customers in your industry to pay their bills. Split into sectors, this tool calculates the average collection period for each industry which can help you determine if your collection policies are in order.
  • Inventory turnover tool. This tool will analyze the rate at which businesses in your sector turnover inventory. This will help you determine the correct amount of inventory to purchase and keep on hand.
  • Directory of business performance and ownership statistics.  This directory, compiled by StatsCan, includes pertinent data about a number of business topics.
  • SME benchmarking tool. This tool allows small business owners to view industry averages and compare your data to existing businesses in your sector.

If you need help determining if your business is running efficiently, contact the Winflow Financial Group. We can be reached at 1.800.956.6897.

What to Look For In a Company Analysis Report

Posted by WFG – June 13, 2011

Company analysis reports come in various sizes and differ depending on the analyst. But despite this there will always be a pattern that is similar for all reports and it’s this that can help you understand the report better.

Firstly there will a background report. This will help bring you up to date with the company and give you a good idea and opinion. Not only will this help with understand the company in the report, but may also help you gauge an understanding on the industry in question.

The second section is the update. The update can be driven by a number of aspects but it’s always important to ask yourself ‘what’s different from the last report?’ There should be a change or news that issues the reason behind a company analysis report. Sometimes the report is completed because of a change in stock prices or the analyst is looking to make a statement to the company.

The last part of the analysis report is the estimated earnings. This area is highlighted as the most important section of the report and the key focus point. Companies are largely valued on their earnings, despite a weak background and update, and a good analysis of estimated earnings can help a company improve its reputation.

For more information on company analysis reports contact Winflow Financial Group and discuss details with professional financial consultants.

Making your Small Business More Productive

Posted by Winflow – June 13, 2011

During these difficult economic times, it is important that your small business is as productive as possible. Making your business more productive really just involves making smart decisions. Some factors that will boost your productivity include:

  • Review your current setup. Is there inventory that isn’t moving? Are you operating using the most cost-efficient methods? Could you stand to layoff a few employees? Can current employees be re-trained to do more work?
  • Use technology to your benefit. Chances are, you will find more competitive pricing online and you can use business software to improve the speed at which tasks are completed.
  • Include your employees in organizational roles. Giving an employee more responsibility should cut down on the amount of work you have to do and will give them a sense of ownership within the company.
  • Prioritize duties within your company. It goes without saying that the most important tasks should be completed first.
  • Cut down on time-wasters. If your employees have access to the Internet, be sure they are using it for business purposes.

To learn more about making your small business more productive, read this Canada Business article.

For your business needs, contact the Winflow Financial Group at 1.800.956.6897.

Tips From The Private Equity Pros

Posted by WFG – June 13, 2011

The leading private equity firms earn a return that outweighs anything in the corporate sector. But this doesn’t only have to be the leading companies. They follow 5 simple methods that anyone can follow, helping your company gain higher returns.

  1. The best private equity firms own leaders that work like owners. They are backed by independent boards and make quick, precise decisions. They don’t hesitate to replace inadequate leaders of portfolio companies and act on educated impulses.
  2. The private equity professionals also have a clean vision of how they will gain value from portfolio companies. This may be over 3 to 5 years but every action is taken from a plan until the company meets its potential.
  3. With private equity companies relying on debt financing, they see cash as a scarce resource. This means that any companies falling behind will be cut off and new ways to maximize income are created.
  4. Private equity firms should always maintain an independent view. While acting as a demanding shareholder they can embrace an unsentimental approach to ownership, helping them concentrate on improving results.
  5. When the balanced scorecard was introduced a lot of companies measured a broad range of indicators. But though this can help in some aspects, it’s important not to get too carried away and keep things simple. Measure cash rather than earnings and rely on the simple dashboards.

For more advice on how to improve your financial position contact Winflow Financial Group.

Canadian Financing Sources for Innovating your Small Business

Posted by Winflow – June 13, 2011

The government of Canada offers a number of programs to fund everything from research and development (R&D) to commercialization. R&D is an important aspect in small business growth. Often times, small business owners are unable to grow their business because of a lack of sufficient funding. If you are currently seeking funding to innovate your small business, determine if you qualify for the following programs:

  • Industrial R&D Fellowships program. This program is for R&D initiatives in the engineering or natural sciences field. You could receive assistance hiring  PHD grad for two years.
  • Strategic Aerospace and Defence Initiative. If your small business is in the defence, aerospace or space and secuirty industry to could receive a loan to cover 30 percent of costs associated with your R&D project.
  • Ontario Innovation Tax Credit. If your small business is located in Ontario, you can claim a 10 percent tax credit for R&D.
  • Going Global Innovation. If your small business is ready to expand to a foreign market, you could receive 75 percent of travel of your travel expenses.

For a complete list of funding available for R&D projects, visit this Canada Business page.

If you need help finding funding for your small business expenses, contact the Winflow Finacn