5 Common Mistakes Made When Drafting a Business Plan

Posted on July 19, 2016 by Marijana Dabic

Business plans are key when it comes to putting a company together. They can help organizations review items like value propositions and marketing strategies, as well as operations, financial and staffing plans.

However, developing a strong business plan takes time, and it is likely that your organization will have to create several drafts before landing on a successful version. To aid in your drafting, avoid the following common business plan mistakes:

Grammatical errors. Spelling, punctuation and other errors can destroy any credibility you have in an instant. Prior to sharing your business plan with investors or bankers, it’s crucial that you have an editor take several passes at it.
Unrealistic projections. If your plan is too optimistic—or even dishonest—in terms of current and future value, it is likely that bankers and other investors will pass on your business. Do careful research when drafting the financial projection portion of your business plan. This will not only look good to those who read your plan, but it will also help you properly prepare for the future.
Unclear target audiences. Businesses will appeal to different customers and markets to varying degrees depending on the company’s value proposition. Inaccurately or vaguely defining these audiences and markets can spell disaster, as you will not know how to successfully connect with customers and prospects. To avoid this, use primary and secondary market research to understand your business climate and where you fit in.
Vague or complicated details. Your business plan should be thorough and contain enough detail that a person with a high school degree can understand it. At the same, your plan shouldn’t be overly focused on the details, and you should avoid sharing any proprietary information. A commonly expected business plan structure includes a three-page summary, a 10- to 20-page plan and an appendix.
Poor competition assessments. Regardless of the industry, all businesses have some form of competition. A good business plan should identify your competition and their value propositions. Understanding and planning for this competition can help you better position yourself in your respective marketplace.

Remember that good business planning can help save you time in the long run. It may take more hard work up front, but thinking critically about your business, researching your competitors and getting feedback along the way will set you up for long-term success.

How the CPP Will Impact Businesses

Posted on July 12, 2016 by Marijana Dabic

On June 20, 2016, the federal government and the majority of Canadian provinces reached an agreement in principle regarding changes to the Canada Pension Plan (CPP). The changes will be phased in over the course of seven years, beginning on Jan. 1, 2019, and will require workers and their employers to pay higher contributions.

This new deal will mark the first significant increase in CPP benefits since the program was first launched 50 years ago. In general, the CPP aims to help Canadians enjoy a financially safe retirement and ensures a strong public pension system.

The CPP deal includes, but is not limited to, three major changes that will impact businesses:

The annual payout target will increase from 25 per cent of preretirement earnings to 33 per cent.
Contributions to CPP from workers and companies will increase by 1 percentage point to 5.95 per cent of wages.
The maximum income that is subject to CPP contributions will increase from $54,900 to $82,700 by 2025.

Young Canadian workers are likely to be the ones benefiting most from CPP changes. This is because, to reap the full benefits of CPP, a worker would have to contribute for about 40 years. Other employees will benefit to varying degrees depending on their age.

There is some concern that the higher contributions will force small and medium-sized businesses to refrain from hiring new workers or making other important investments. However, experts have said that it is unlikely that the Canadian economy will suffer from CPP expansion.

15 Risk Mitigation Tips for Airbnb Hosts

Posted on July 5, 2016 by Marijana Dabic

Property owners have a unique opportunity to efficiently rent out their entire home, a spare bedroom or other accommodation through the online service known as Airbnb. For travellers, Airbnb is a convenient, web-based platform that provides affordable and flexible alternatives to hotels. For property owners, the tool easily connects various rental units with prospective occupants and makes collecting payments simple and secure.

Despite its convenience and the potential for profit, Airbnb is not without its risks for those who decide to list. Before renting out your home or spare room through Airbnb, keep in mind the following tips:

1. Acquire the proper insurance.

Proper insurance is key to mitigating the risks associated with Airbnb. Take the time to review your renters or homeowners policy with ALIGNED Insurance Inc. to make sure you have adequate coverage in place.

2. Complete a home safety inspection.

Safety inspections can help Airbnb hosts address risks before they balloon into bigger issues. Before listing your property on Airbnb, complete a thorough home inspection and address all of the safety hazards you identify.

3. Screen all guests.

Prior to allowing guests to stay in your home, it’s a good idea to check their background. To begin, ensure that prospective guests are verified through Airbnb. You can also review any connected social media accounts and read guest references through the site. Above all, trust your instincts.

4. Set clear rules.

Through Airbnb, you can create guidelines for guests by completing the House Rules, Home Safety Card and House Manual sections of your profile. This allows you to set clear rules for guests around etiquette and safety.

5. Establish occupancy limits.

Limiting the number of occupants that can use your property will help ensure that guests are comfortable and safe during their stay. Occupancy limits should take into account the size of the property and local regulations.

6. Add a security deposit.

Adding a security deposit to your Airbnb listings can lessen the financial blow in the event of damaged property or another incident.

7. Secure your valuables.

When you open your home to guests, there’s the potential that valuables could be damaged or stolen. To protect expensive items, consider moving them into a safety deposit box or to a secure off-site location.

8. Protect sensitive information.

Your property isn’t the only thing you need to worry about when inviting guests into your home. To help prevent identity theft, make sure that guests cannot gain access to any files (physical or electronic) that contain sensitive personal information.

9. Install smoke and carbon monoxide detectors.

Safety equipment like smoke and carbon monoxide detectors should be installed around the premises to protect guests and your property. Emergency exits should be properly labelled as well.

10. Child-proof your premises.

It’s likely that some of your guests will have children. To protect younger guests, take the time to properly child-proof your home.

11. Keep your accommodations maintained.

Good housekeeping can help guests avoid common injuries such as slips and falls. Prior to each stay, examine your home for any new housekeeping issues that must be addressed.

12. Provide contact information.

Always supply your guests with information sheets that indicate local emergency numbers and the nearest hospital. Provide a clear emergency contact number for yourself, as well as backup, for easy guest reference. Also make clear how you should be contacted if the guest has questions or issues arise.

13. Supply a first-aid kit.

In addition to providing emergency contact information, having a first-aid kit readily available and fully stocked at all times is important to guest safety.

14. Verity compliance with regulations.

Regulations around Airbnb hosting can differ depending on your location and the type of accommodation you are renting out. Double-check that you are compliant with local and provincial laws before using Airbnb.

15. Notify those who could be impacted by your guests.

When you host guests through Airbnb, there is the potential that neighbours or roommates could be impacted. To avoid unnecessary conflict, let your neighbours or roommates know ahead of time that guests will be using your property.

4 Tips for Avoiding Kidnappings Abroad

Posted on June 29, 2016 by Marijana Dabic

Canadian John Ridsdel was kidnapped by a terrorist organization and held for ransom while visiting a resort island in the Philippines in September of 2015. In April of 2016, Ridsdel was killed by his captors. A retired executive, Ridsdel was an avid traveller and knew the region he was visiting well—proof that kidnappings abroad can happen anywhere and to anyone.

This tragic incident helps illustrate just how important it is for businesses that allow their employees to travel abroad for work to protect those workers. The following are four tips employers should share with their employees to ensure safety abroad:

Be aware. Most kidnappings can be avoided if the employee is aware of his or her surroundings. Having a deep understanding of the culture and how you may be perceived can go a long way toward avoiding dangerous situations. Ensure that your employees understand how to properly conduct themselves in public.
Transportation. Ensure that you have provided approved transportation to your employees. Never provide transportation you are unsure of, as this can be dangerous. Employees should also be advised to avoid spontaneous trips to unfamiliar areas.
Vary your schedule. Sticking to a daily routine is good for planning, but it can make an employee an easier target for kidnappers. For long-term trips, instruct employees to change up their routes to and from their hotels as possible.
Be wary of the local authorities. Abroad, the local police can be an invaluable resource to your employees in the event of an emergency. However, they can sometimes be just as dangerous as the kidnappers themselves. In fact, in some foreign countries, local police may do the kidnapping themselves or play a role in helping kidnappers capture unexpected travellers.

To further protect employees, businesses should consider purchasing a kidnap and ransom insurance policy. This type of coverage is a stand-alone policy designed for those businesses whose employees travel internationally, and it covers costs related to kidnapping, ransom, wrongful detention, extortion and hijacking.

The Risks of Allowing Employees to Use Tablets

Posted on June 23, 2016 by Marijana Dabic

Tablets and other such devices have become increasingly common in the average workplace. And, while these devices can be important for your employee’s daily work, they also represent a cyber risk if they are not properly managed.

The following are just a few of the major risks associated with having tablets in the workplace:

Mobile malware. Tablets are typically infected by malware via malicious apps and phishing scams. When this happens, a cyber criminal can gain unauthorized access to the device and associated network systems. In general, iOS tablets like iPads are safer from malware than Android tablets. However, mitigating the risk of malware typically comes down to the user. Workers should avoid downloading unfamiliar apps.
Loss of data. Following a security breach, data loss is inevitable. For tablets, this could mean that users are locked out of their devices altogether. To protect your business, employees should always back up their data, and ensure that no sensitive or proprietary information is stored on it.
Unsecured networks. Unsecured networks are a particular concern for tablets because they are easy to take on the go into areas with free and public Wi-Fi connections, like cafés and airports. These connections are not always secure and can be easily hacked by cyber criminals. To prevent this, employees should be reminded that no public Wi-Fi is safe. For further protection, offer a virtual private network (VPN) that your employees can utilize to safely use the internet off-site.
Theft. In addition to virtual threats from hacking and phishing scams, cyber criminals could just as easily steal the tablet itself. This could give them unlimited access to proprietary or personal information. To combat this, employees should never leave their devices unattended. Using a secure password can also help prevent theft of information.

Above all, employers should have a personal device policy in place that accounts for security threats. Employees should know what they can and cannot do with their devices and how to protect the sensitive information contained within. These policies should be extended to other personal devices with internet access, such as smartphones.

Archives

5 Common Mistakes Made When Drafting a Business Plan

How the CPP Will Impact Businesses

15 Risk Mitigation Tips for Airbnb Hosts

4 Tips for Avoiding Kidnappings Abroad

The Risks of Allowing Employees to Use Tablets

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