Tag: costs

Outsourcing and your Small Business

Posted by Winflow – June 20, 2011

Many business owners think outsourcing is just for large companies. According to American Express Small Business Monitor, more than half of small business owners say outsourcing is too expensive. Outsourcing can be valuable to a small company though. It can allow business owners to focus on the growth of their business. Here is some information about outsourcing your small business:

  • Know your core. When determining what work to outsource, it is best to keep the operations that define the core of your business. Focus on the essentials of your business like sales or customer service and outsource things like payroll or marketing.
  • Use one company for your outsourcing needs. The more services one outsourcing company provides, the more money you will end up saving.
  • Test the waters. Outsource departments slowly to make sure the decision was successful and be sure you are happy with an outsourcing company’s service before signing a contract.
  • Outsource self-contained tasks. Projects that involve working in a team or brainstorming may not work well if they are outsourced.
  • Be aware of all the costs that come with outsourcing. Outsourcing could cost you in lay-offs and severance packages. You may also have to pay the remaining employees overtime or provide funds for telecommuting.

If you have questions about what is best for your small business, contact the Winflow Financial Group.

Telecommuting and your Small Business

Posted by Winflow – June 17, 2011

Depending on your field of business, telecommuting could be a great option for reducing costs and improving employee morale. Telecommuting isn’t for everyone though. Jobs that require high customer or co-worker interaction will probably need to be at your store location. People that work in knowledge-based industries, like marketing, can consider implementing a telecommuting policy in their place of business. If you’re thinking of implementing telecommuting as part of your small business, consider the following:

  • Telecommuting can cut down on costs for your business and for your employees. Employees don’t have to worry about paying travel costs and business owners can downsize their business location, saving them money.
  • Determine how many days an employee can work from home. Will it be everyday or just part of the week? Once you’ve decided this you can start figuring out how to keep track of hours, plan which days are telecommuting days and decide if you will purchase the equipment necessary to telecommute.
  • According to USA Today, telecommuting employees are more motivated and take fewer sick days. This is likely because employees can achieve a better work-life balance when they’re telecommuting.

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

Questions to Ask Business Lawyer

Posted by Winflow – June 16, 2011

Choosing the right lawyer for your business can help you a lot when facing legal issues down the road. Before you contract an attorney to work with your company, you will get the chance to sit down an meet with him/her during a consultation. During the consultation is when you should you ask your questions to determine if this lawyer is right for your small business. Some questions to ask an attorney when meeting with them for the first time include:

  • What will this cost? One of the most important things to determine is if a particular lawyer will fit into your small business budget. If an attorney won’t provide cost details, move on.
  • Have you worked with companies like mine before? If an attorney has experience working in your field of business they are likely to be better representation than someone who practices a more general type of business law.
  • Who else would work on my case? If attorneys rely on paralegals or junior attorneys to handle your case load you should be paying less.
  • How will you keep me informed about legal developments? Make sure you hire an attorney that will be there for you when you need them.
  • Will I have control over my legal affairs? A lawyer should work with your business and you. A lawyer who makes most of the decisions on his/her own could charge you for work you didn’t want.

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

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.

Improving your Cash Flow

Posted by Winflow – June 13, 2011

Creating a steady cash flow is important to any small business, especially a business that finds themselves working with a negative cash flow. Cash flow is the money you have leftover after your expenses are paid. Cash flow is useful for growing and expanding your small business. To increase your cash flow, consider the following:

  • Pay attention to financial statements and track where your cash goes each month. This will help you analyze if there are any ways to cut back on expenses and determine the health of your business.
  • Research potential customers ahead of time. Do credit checks on prospective clients to ensure they will pay you on time. The longer you let another business owe you money, the longer you are actually funding their business.
  • If you have several loans, consolidate them. This involves combining your small loans into one big loan. You are likely to save money on interest payments.
  • Optimize your stock. If you have a surplus of inventory lying around, get rid of it. It will just cost you more money to store it. Be careful not to overstock when ordering inventory.

If you would like more advice on improving your company’s cash flow, contact the Winflow Financial Group. Our trained consultants can be reached at 1.800.956.6897.

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

Ensuring your Business is Profitable

Posted by Winflow – June 10, 2011

The purpose of opening any small business is to make a profit. Your profit is what is left over after you subtract your total expenses from your total revenue. Some tips for analyzing your profits include:

  • To determine your revenue, follow this formula:
    How to Calculate Revenue infographic: Miranda Newman, formula provide by: Canada Business
  • Make a comprehensive list of your expenses.
  • Profit is more than just what the boss takes home.
  • Profit can be used for funding business growth, covering economic downturns and debt repayment.
  • To determine the financial ratio/liquidity of your business, follow this formula:

    Formula for Current Financial Ratio, infographic: by Miranda Newman, formula provided by: Canada Business

    The higher the ratio is, the higher the credibility of your business.

  • Compare your profits with other firms in the industry, personal profit goals and past profits to determine if changes need to be made within your company.
  • Keep detailed financial records to foster a direction for your business to take.
  • If you have a buying and inventory system be sure to analyze the costs associated with it to determine if there are any ways to optimize the system.

For more information on how to analyze your profits, read this Canada Business article.

If you need help making your business profitable, contact the Winflow Financial Group. We can be reached at 1.800.956.6897 or at info@winflowfinancial.com.

Funding Available to Aboriginal Business Owners in Canada

Posted by Winflow – June 8, 2011

If you are an Aboriginal business owner in Canada there are number of resources and funding available to you. Through the Aboriginal Business Canada program, small business owners can receive help developing business plans, securing non-repayable funds and accessing lenders if necessary. Funding available to Aboriginal business owners includes:

  • Individual entrepreneurs can receive up to CAD$99, 999 worth of assistance if they qualify.
  • You could receive up to CAD$1 million if you operate a community-owned business.
  • Non-commercial projects like special events that cover Aboriginal entrepreneurship could have 100 percent of the costs covered.
  • The amount of support you receive is determined by a number of factors including the need for financing, the scope of the project and what other funding options are available to you.
  • You must offer equity in your business for the loan. It is usually between 10 to 15 percent of your company.
  •  Different projects get different percentages of funding. For example, you could get the costs of implementing marketing techniques subsidized by up to 60 percent.

If you are an Aboriginal business owner interested in ao funding from the Canadian government, read this guide.

For more articles on funding assistance please read the following:

To learn more about other funding options available to your small business, call the Winflow Financial Group at 1.800.956.6897.

Business to Business (B2B) Marketing

Posted by Winflow – June 7, 2011

Business to business (B2B) interaction is when your company works together with other businesses and other wholesale buyers to provide specialized product lines, expand your markets and deal with manufacturers. With the recession, B2B marketing is less effective because there are less customers. To make the most out of your B2B marketing during times of financial crisis, consider the following:

  • Optimize your landing pages. Your landing page is where the customer first enters your website. A good landing page can prompt customers to continue exploring your site which can lead to sales. A poorly optimized landing page can increase your bounce rate sending your business further down Google searches.
  • Integrate your marketing and sales teams. The Internet causes buyers to begin interacting with your marketing campaigns before they ever speak to a sales representative. By streamlining these teams you may be able to create a single revenue pipeline.
  • Focus on building relationships with customers you already know. Finding new customers costs more money than keeping the old ones happy. During a recession, remember to market to returning customers over new ones.

For more tips on B2B marketing, read this article.

If you would like to learn how B2B marketing can help your business, call 1.800.956.6897. Our consultants at the Winflow Financial Group will determine how to best increase your marketing and sales.