Now I could go

Now I could go on...promote your project via social media, send out press releases and engage bloggers, media and industry influencers to spread the word...but what’s most imperative is you share your links and get people interested in what you’re creating. Don’t be pushy or beg for cash—the goal is to draw people in, make money and create lasting (not I need you now, forget you tomorrow) relationships. Building relationships, as we all know, is essential when it comes to business. This also applies to the online world. Sending your friends, family and web engagers to an easy-to-read e-petition will not only fund your goals but help build your audience. Think brand awareness, a greater number of followers (social media), more hits on your website and recognition for good work (assuming your online campaign is creative, boundary-pushing and on target).

 

Earlier this year I managed a film development campaign on IndieGoGo. Within 30 days, we raised over six thousand dollars. How you ask? By writing a concise and clear description of the film, outlining where the money was going and using language that would entice people to read the write-up, watch the video and want to know more. The incentives, while they play a big part in getting people to invest, are in my mind, secondary. Most important, the concept has to be good, if not great. Now, I sent the e-campaign to bloggers, film magazines, industry influencers—and of course, friends and family. I was diligent. I didn’t beg but followed the basic laws of marketing and publicity: be kind, showcase the positives, and connect with real people. I’m proud to say that that little film, Shhh...  went on to win the best sci-fi fantasy short film category at the Oscar-qualifying Rhode Island International Film Festival this month. We didn’t get the $15,000 we wanted, but the six grand put a big dent into post-production costs.

 

Imagine Canada

Check out Imagine Canada, especially if you’re a not-for-profit. Here you’ll find every funder under the rainbow: family foundations, corporate and community givers, individuals and associations. Each will have its own requirements and specs. Put your researcher hat on and search, search and search some more. You’ll find everything you need here, though it doesn’t come cheap, but lucky for those with a Vancouver Public Library card you can access it onsite at any branch for free. 

 

Be sure to take a look at Vancouver Foundation too, although Imagine Canada covers it all (from science to art and everything in between) and includes American funders.

 

Biz connects

Be bold and reach out to industry makers—not only as sponsors but as investors in your idea. Now, don’t go contacting businesses you like but wouldn’t be interested in what you have to offer. Do your research, know who’s who, and be fearless. (I cannot stress research enough. Doing your homework will differentiate you from the pack.) Look at companies whose vision matches what you’re selling. Think Redbull: music, visual appeal. Vancity: local and community focus. Coca Cola: a brand with longevity. Nike: inspiration, boundary-pushing. Don’t limit yourself. Connect with local, national, international players. At the end of the day, it’s about communicating your goals effectively (know your stuff), talking to the right people (do your research) and conveying how you will both benefit in the end (know what they do and what you can do for them). Be confident. And sell it.

NO MONEY, MO PROBLEMS?

So what do I mean by usual suspects? Think government grants and loans. Let’s face it folks, the competition is fierce, the volume of paper work is high, the deadlines are tight, and well, it’s no easy walk in the park to get fed bucks. In my mind, forget about going this route and be more creative.

You want cash? Start thinking outside the box. Here are a few pointers to do just that:

Know what you’re doing and what you’re after

Whether you’re promoting a service, a product, or simply an experience, you must be organized. Now reread this sentence and put it to memory. Why so militant? Often we have great ideas but we forget that pitching a half-baked concept isn’t going to get us anywhere. It’s crucial you know what you’re doing and what you’re after (how much money). Outline everything—from inception to play-out, from your audience to costing your services, ingredients, packaging and beyond. Once you have your five Ws done (and written up nicely), then you can search for funding sources. Until then, sketch out your plan and be specific!

Crowd-funding

So what’s crowd-funding? Using an online platform, you can present your need for cash to web surfers and investors alike. How? Devise a simple marketing strategy/campaign whereby you provide info on your project and incentives for funding in exchange for real dough. In essence, you’re drawing people in, and when done well, creating an audience that will not only invest, but spread the word and follow you beyond this project/need for cash.

 

Kickstarter and IndieGoGo are two crowd-funding platforms and are not just for the arts (but don’t limit yourself, the net is a big place). Think environmental projects, design prototypes, event productions, fundraising plugs and flick development. Now, both sites have their pluses and minuses. Kickstarter requires you reach your funding goals or no money changes hands. Be careful then that you don’t overvalue what you need and most importantly, ask for what you can get.

 

IndieGoGo offers two fee options: get what you ask for and get dinged 4% or don’t reach your target and get 9% off—not to mention service charges for credit card processing. The choice is yours. But before you go to the web in hopes of making the big bucks, come up with a marketing strategy. Make an enticing video for prospective funders—and nothing longer than a couple of minutes. Provide details on your project and how the money earned with help you—but don’t go overboard, your goal is to engage, not bore. And don’t forget to offer incentives.

Have you heard the news

Have you heard the news? The Canadian Youth Business Foundation (CYBF) has increased its age limit by 5 years, to 39.

This change represents the organizations first adjustment to the program to help better serve aspiring entrepreneurs.

Who is CYBF?

CYBF started over 16 years ago to help serve young and emerging entrepreneurs. Their Startup Program now offers entrepreneurs aged 18 – 39 the chance to obtain start-up financings, post and pre-launch business coaching, business resources and mentoring. 

 

Small Business BC works closely with CYBF to help entrepreneurs across British Columbia get their business plans in-order and ready to be assessed, giving you a greater chance of success for obtaining finance.

Why the Change?

The change was made possible by a recent organizational shift from charity to not-for-profit that enables CYBF to actively engage and assist a larger diversity of entrepreneurs.

 

The change also aligns with a recent survey released by the Kauffman Foundation, the world’s largest foundation devoted to entrepreneurship, who found that from 2003–2008 the average age of small business founders increased across all new businesses categories. One example given of this increase is the average age of a technology start-up founder, which is now at an average of 39.

Find out More

To find out more about the CYBF’s funding programmes come in and speak to one of our advisors about your financing needs. They will then help recommend the most suited program for your business and guide you through the application process. 

INVESTMENT OR A LOAN?

Unless you are an accountant or a fan of working with numbers, bookkeeping is probably not your favourite task. But adopting some good habits early can help you avoid costly errors when it comes to record keeping.

You probably keep a lot of the financial details of your business in your head: which supplier you need to pay, which customers are outstanding, etc. It’s understandable to do it this way, you won't need to learn a new software, there is no danger of a system crash that loses all your data, and you can tweak your budget as often as you need without sitting down at a desk.

 

However, when you don't have a system and processes in place, unpleasant surprises can pop-up, goals can be missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and even improve your profits. It can also help you to stay out of trouble with the Canada Revenue Agency.

 

Here are our five tips for small business bookkeeping.

1. Plan for Major Expenses

Be honest about the expenses that could be coming up in the next one to five years. Is it likely that you will need to upgrade your facilities? Is your office equipment on its last legs?

It is important to acknowledge the seasonal ups and downs of your business, and how they will affect your ability to spend during those times.

 

By making sure that you have forecasted for major upgrades, or peaks in staffing costs, you will avoid taking money out of the company in good months and finding yourself short in slow months.

2. Track Your Expenses

Expenses can be hard to track, which means that you may be missing tax write-offs that you could have benefited from.  

 

Business credit cards can be handy tools to make sure all expenses are kept together and tracked. As long as you keep up to date with your payments that is. Most providers have now adopted the service of categorizing your bill into types of expenses, meaning one less task for you to do.

 

To help prepare for audits, it is also useful for you to make notes in your calendar of the clients that you are meeting for each of those coffee dates, lunches and events. This will help substantiate your expenses for your tax records, should you be audited.

 

That goes for car mileage too. When driving long distances to meetings, make sure you either keep track of your mileage or do a calculation with Google Maps to log how far you travelled and the associated costs. 

3. Record Deposits Correctly

Whether it’s a pocket notebook and pencil, an Excel spreadsheet or financial software like Sage, make sure you keep track of what is being deposited into your business bank account.

You are likely to make a variety of deposits in your account throughout the year. From loans, to sales revenue, to cash infusions from your personal savings. If you cannot account for where each of the deposits have come from you’re leaving yourself open to paying taxes on money that isn’t income.

4. Set Aside Money for Taxes

You know that you’re going to have to pay taxes and you know when. So systematically put money aside for it. Unpaid taxes can incur penalties and interest from the CRA, so make sure the money is there when you need it.

 

By putting money aside each month, or each time a contract is paid, it will come as less of a sting when they are due. 

5. Keep an Eye on Your Invoices.

Late and unpaid bills can hurt your cash flow. Assign someone to track your billing. Then put a process in place for if a bill goes unpaid. That can be issuing a second invoice, making a phone call and even levying penalties such as extra fees at certain deadlines

.

Make a plan for if clients are 30, 60 and 90 days late. Remember, every late payment is an interest-free loan that hurts your cash flow.

INVESTMENT OR A LOAN

Here are a few tips to get you started.

Should I get a business loan?

If you can afford the monthly payments without eliminating your company’s cash, and you have a slow-growth business, a loan might be a good option. You don’t have to give up any ownership in your company in exchange for a loan, and in 3-5 years when the loan is paid off, the business and its assets remain 100% yours. Sure, you have to pay some interest, but you don’t have to give up any control over the decisions that are made in your business.

 

Brick-and-mortar businesses are often good loan candidates, because they have assets (like equipment and inventory) to secure loan financing. However, you’ll need to keep enough cash in your business to guarantee you can make your payments if sales are slower than you projected. Most lenders will want to see a business plan that provides a clear projection of cash flow and an explanation of how you’ll deal with slower than anticipated sales.

Should I look for investors?

Investors often like to put their money in high-growth companies (like technology and energy start-ups) because they might see high returns relatively quickly. Companies that are seeking a quick acquisition and expecting to grow revenues at a fast rate are attractive candidates for equity investment. However, many small businesses, including brick-and-mortar stores with slower growth rates, do receive investment. Sometimes, this comes in the form of love money, or investment from family and friends. 

 

If you’re seeking investment, you need to be comfortable giving up a percentage of your company and sharing the decision making with someone else. If your business fails, some of the company’s assets will go to that investor. Think about what percentage you’d be willing to give up, and for how much money, but be careful not to overvalue your company at the beginning. For example, a $100,000 investment for 10% of your business effectively values it at $1 million; but without a history of revenue and profit to support that valuation, you’re unlikely to get the investment you want. Be prepared to answer a lot of questions about how you’ve valued your company. 

Finding Sources of Funding

Don’t be afraid to approach local small business centres, government departments, banks and successful business people to ask where you might start your funding search. There are a lot of options available and it can take some time to find the right one for your business. The best advice I can offer is to be patient, do your research and make sure you have a sound business plan that you can show investors and lenders when they show interest in your company. You never know who you’ll meet on your entrepreneurial journey.

It seems that everyone

It seems that everyone and their dog have something to say about optimizing websites to rank highly for search engines. With the emergence of this knowledge over the last ten plus years, a number of myths and misconceptions about the dos and don’ts of SEO have also become commonplace. 

Here we try to dispel the myths and explain the real story behind them.

Submitting Forms to Search Engines

In the late 1990's search engines had ‘submission’ forms, where webmasters would effectively tell the search engine that their site existed. After submitting the form, the engine’s algorithm would then crawl your site for information. 

 

Because of the system’s openness to manipulation and the lack of reliability of webmasters submitting their forms, this process ended in 2001. The forms still exist, however the major search engines have all confirmed that they rarely use the submissions. In its place, search engines now rely on (respected) external sites linking to your website to determine how they should index you. 

 

The only exception to this rule is if your site has been penalized by Google, you can submit a reconsideration request, after you have made the appropriate amendments.

Keyword Meta Tags

Back in the day, meta tags were absolutely key. They could dictate how high your page would appear in the search engine results pages (SERPs). This system was quickly abused by spam sites, and today only Yahoo! indexes from the meta keywords tag.

This does not mean that meta should be abandoned entirely. Although tags are out, the page’s meta descriptions are in. These short paragraphs (between 150 and 160 characters) are not only important for search engines; they are your opening line to your client. Keywords should be used intelligently for search but text should also compel the searcher to click on your site.