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How to manage your business

on Tue, 12/25/2012 - 03:28

"Entrepreneurship and Small Business" series, #4 (#3 Things to consider when you start your business; #2 What you should do before you quit your full time; #1 What needs to be prepared before you start your business#5 How to pay yourself effectively; #6 The advantage of a business account; #7 Business budget made easy; #8 Last minute tax saving for corporations; #9 The federal disaster to small businesses and working class)

Now you have got most of your rhings set up and you had started your business for some time, these are things you might need to look into at this point so that you can manage your business more effectively:

Hiring: Don't hire just because "you need someone" (Globe and Mail: Jumping from solo act to employer is a big step)

- repetitive training can be very costly:
if you hire just anyone, chances are you will have to look for someone else very soon as you have not spend the needed amount of time to find out whether that person fits your company or not. Then you ended up training a “new person” all the time and that can be very costly
- better to do it right one time, than to fix things up after wrongly done:
proper trained employees will get you expected outcomes instead of lots of “trial an error” situations. It cost you (your company or even your customers) more to have things fixed up.
- never assume:
no matter what you do and how much you wish, employees will hardly have the same degree of care about your business as much as you do (inject some profit sharing might change this), bear in mind, sometimes you are the only one you can count on, make sure you get done what you need to get done on time even though you had appointed your employees to do it; you can only wait so long (or give that much of a chance to anyone) before your company repetition gets ruined. 
- match talent to job:
be sure to put together a job description before hiring. Look for characteristics of your ideal candidate and match them to the job you are offering.
- make everyone accountable:
establish understanding with employees when things are needed (deadline); how things are done (process) and what needed to be done (tasks), and make sure everybody is on the same page
 
Outsourcing: Don't try to do EVERYTHING
- spending too much time on something you are not good at = losing the time to make money by doing what you do best
 
Risk Managing: WSIB & other coverages
- consider WSIB over private disability plans, get help from Office of the Employer Adviser. OEA is an independent agency of the Ministry of Labour and has been helping Ontario employers manage their workplace safety and insurance costs since 1985. Current governmental disability programs.
- we have to be aware that certain expenses will NOT stop just because we cannot work due to disability (long term or short term), consider loan insurance and overhead expenses insurance, which benefits calculations based on actual expenses not your income will get you covered better.
 
Protect your intellectual property: trademark, copyright, patents
You will never want to see someone else using your brand to do something else, corrcet? Make sure you have your trademark, copyright and patents register properly with the Canadian Intellectual Property Office
 
Agreements and terms: just in case...
- whether you are hiring or having a collaboration with anyone, it is important to in place proper agreements. 
 
Legal issues... 
- no one likes legal issues but that doesn't mean we can get away from them. There are different ways to get access to legal advises without breaking your bank, those include: DAS legal expenses insurance; Legal Link from Foresters Life
 
Portect your business' productivity: key-man insurance
- in place proper coverage for your key man (the most important person to your company's operation) or partners, bear in mind getting a replacement costs you money
- wage loss plan, disability coverage (WSIB - cheap and best of DIs as stated above)
- critical illness insurance on key person and yourself
- arrange to in placing a corporate-owned life insurance policy for even more benefit and profit
- consider return of premium on surrender option on all coverages to lock in guaranteed returns 
 
More tips on how to make your business more profitable by decreasing tax liabilities, stay tuned...

Comments

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trufinancial's picture

Hi there,

This article is a part of my "Entrepreneurship and Small Business" series, you can chek back to find more advises on small business finances.

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