Up Cash Creek Without a Paddle.

Even when business is good there’s still a change of running out of cash flow. You have to always be prepared for a slow in sales or a surge in expenses. One of the keys to balancing your cash flow is to get your clients to pay on time. This can seem like a nightmare, but is absolutely essential to a successful business.

Here are some tips to speed up the payment process:

·       Always send invoices on time and adjust your records for potential audits.

·       Learn how the client processes payments on their side and find out precisely where to send invoices.

·       Find out who’s in charge of processing orders and payment, so you know who to contact if needed.

·       Have a follow-up procedure in place, just in case.

·       As a last resort, call your contact to ask questions.

·       Always make sure your invoices are correct before sending them out.

You also need to make sure your cash flow is protected. You can do this by:

·       Always know which accounts need paid and when.

·       Negotiate with your suppliers for the lowest cost possible.

·       Have a bank contingency plan in place.

·       Build your own inventor network.

These are all great ways to protect the cash flow of your business and prepare for fish transitions and slow sales. These last few lessons are all about finding and catching your big fish clients. These clients are essential to your success and your need to take the time to work through each of these steps carefully and correctly for the best success.  If you need more help in these areas, just contact me and we will help you with business and the transformation of your business.

Canada Is Rebounding While the U.S. Falters

It’s the dog days of summer and I was reviewing the difference in attitudes in between Canada and the U.S. in business. The Canadian market is holding its own. I recently tried to do a joint-venture partnership with a company in the U.S.

I was surprised that the people I was trying to work with were negative and down on the economy in the U.S. and I was also surprised how fragile they were in taking risks. As a business person who has consistently worked throughout North America for the past 30 years I was surprised that Americans were sounding like Canadians in the 70’s and Canadians were sounding like Americans in the 80’s. Canada is on the rebound and there are a number of reasons.

Canada's economy has consistently outperformed that of the United States since the beginning of the financial crisis. And while it's showing signs of slowing down, Canada's pending decline will be far shallower than that of the United States, and its rebound more dynamic.

Canada's gross domestic product (GDP) expanded by 6.1% in the first quarter of the year - the highest rate of growth among developed nations - and the country is expected to lead Group Seven (G7) nations in economic growth for at least the next two years; why ? Well there are many reasons.

Canada’s banking system is sound, banks stayed out of the mortgage business and while granting credit made it flexible for Canadians to get into the mortgage business but did not get that involved in the sub-prime game. Canadians look at the word market and not just at their own market. This has allowed them to make huge gains in Far East, North and South America and Europe. The country has bountiful resources including: lumber, oil, raw materials, water and land, much of it undeveloped.

Canada’s economy is moving into a service-based economy more that it’s been in the past. Health Care, education, knowledge and a highly educated work force also have an impact. Compared to the U.S. corporate interests have less influence over government policy and we have far less government debt.

The Canadian economy grew at a 2.0% annualized pace in the second quarter of 2010, shy of the 2.5% gain expected by forecasters. The increase was slower than in the previous two quarters in large part due to a 3.0 percentage point (ppt) net export drag. Inventory rebuilding and increasing domestic demand offset the weight from trade. The first-quarter growth rate was revised to show a 5.8% annualized gain from 6.1% previously.

Both consumer spending and business fixed investment rose in the second quarter although consumption slowed to a 2.6% annualized pace from the strong 4.3% rise recorded in the first quarter. Investment spending posted a healthy 9.1% annualized gain with spending on machinery and equipment rising by a solid 29.7% annualized pace. Residential investment slowed in the quarter, rising 1.2% although this followed two quarters of very strong increases. Spending on non-residential structures eked out a mild 1.0% increase, contrary to expectations for another decline.

Gains in these areas contributed to decent growth in the final domestic demand of 3.5% building on three quarters of very strong gains. The contribution from inventories was smaller than expected in the second quarter, adding 1.8 ppt and matching the first-quarter's revised contribution. The rise in domestic demand in recent quarters suggests that this inventory rebuilding in large part was desired.

The strength in domestic spending also contributed to imports rising at a rapid 16.4%annualized pace. Export growth was milder at 6.0% resulting in net exports subtracting 3.0 ppt in the quarter. Our expectation was that this component would cut 3.8 ppt off the quarterly growth rate.
While the overall growth rate disappointed forecasters, this report confirms that domestic conditions in the economy remained strong.
Let’s hope our friends to the south will start spending money, investing in real assets and remember that they are still one of strongest countries and economies in the world.

You just need to get Americans to start thinking like Canadians – for years we had to do it the hard way and with 1/10th of the population of the U.S. it should be easier for the U.S. to rebound. As good neighbours I hope things will improve for our southern cousins soon. We are beside you in Afghanistan, terrorism and we will be behind you as well in helping your economy rebound.
Kensel Tracy is a business coach and Senior Partner with the Corporate Coachworkz in Chelsea, Quebec Canada.

Is Traditional Media In Canada Dead?

My topic this month is something that is being hotly debated by almost every media outlet in the country and all across North America. Its a question that is on everyone's mind. Is traditional media dying an untimely death?

I personally don’t think so. Just like the telegraph and the morning newspaper media is always in a state of change and the impact of new media on traditional advertising and communications is no different. Let’s just say the amount of attention that new media is getting is making us feel as if traditional media can no longer compete. So in some ways there may be a collective thinking that traditional media is dead. Lets look a some of the facts.

In Canada is safe to say that ad revenues from traditional media are down across the board and online media is definitely on the increase. Newspapers are having the biggest problem securing advertisers since their daily news is reported well in advance on any of the major websites like Canada.com, Sympatico.ca. MSN Canada, Yahoo Canada and Google. For instance as a dedicated newspaper reader, I now only buy the weekend papers and no long subscribe at the office.

The key area that seems to really be taking a hit is the classified ad sections of most newspapers. With free ad sites like Craig’s List, Kijji and any number of local online and employment sites offering free ads and amazing search options, traditional classified and employment ads are also generating the lowest revenues in years.

National television is also suffering not only from the loss of local ad revenues but from the ever changing role played by cable and satellite in Canada. The two national commercial networks are fighting it out with the cable companies promoting the value of local television as cable and satellite companies now want to charge subscribers extra for the right to watch local news in their areas on their local cable or satellite station. The local news represents the largest number of concentrated local viewers and the most revenues since these local stations retain the rights to sell local advertisers into a well watched local program with a highly consistent and dedicated audience.

The main media that seems to remain stable through all of this is radio. With the advent of television in the 1950’s there was much discussion that the radio was dead or would over time die out. As we can see this did not happen. Every local radio station has a bevy of local listeners who continue to support them regardless of the role new media plays. Everyone has a local favourite radio station for local news and sports and local activities. Satellite radio continues to gain popularity; however local news and weather can only be garnered from stations in the local market. So radio's demise is not going to happen anytime soon. However the Ipod is having a major impact on what individuals listen too and when so the jury is still out.

So what does this mean for the individual or the business organization that has a mission to promote an event, sell a product, promote a new service and meet new customers? In my last column I felt that new media such as Facebook, Tweeting, My Space and blogging all help to build profile and help to create new contacts and some new business opportunities as well.

For me personally however, being active in your local community be it online or offline is still one of most important things a person or a company can do. An online community is great to make contacts if you have product that is national in scope and can be sold over great distances. A local community made up of local businesses, events and organizations are still valuable if you get personal service referrals, provide a local service or need to deal with individuals that in your own back yard.

The key point is traditional media is just changing and as they say on Monty Python it’s not time to "bring out yer dead yet".

The local media revolution is no different than any other media revolution that came along throughout history. These included the printing press changing town hall meetings, the telegraph was replaced by the telephone, couriers were replaced by fax machines and typewriters were replaced by computers and radio was changed immensely by the advent of television. So media and communications is always evolving

The key ingredient for change however is that information will always be required and requested by human beings and will be required in selective ways that still include a great deal of personal activity.

People still buy from people and personal relationships are still the most important thing. Regardless of what happens with traditional ways of communicating there will always be something that is just around the corner that will make it easier and more efficient to get the information you require. So traditional media my be dying as we know it, however most organizations are scrambling to reinvent themselves just like my grand father did when upon graduating from telegraph school he found that the telegraph was about to not exist anymore. Just like him, media and advertising will also make shifts that will include reinventing and becoming more resiliant to change.

Mike Hughes “Canada’s Networking Guru” – Gives His Personal Opinion on Networking

As a blog writer, you always have your eyes and ears open for interesting networking stories that you can share. One such story comes from the Ottawa Networking Group on LinkedIn where Mike Hughes “Canada’s Official Networking Guru” hangs his hat. I first saw Mike’s networking handle when going through the members of the network to see if I could find a few friends of mine. I contacted Mike to see if he would be interested in giving me a story on who he was and how he became “Canada’s Networking Guru”. The rest was left up to Mike.

After a few emails back and forth about getting together for the story I got bogged down in making a living and then December rolled around, and Mike and I still had not been in contact. Then out of the blue, an email arrives with an important comment on an area that I should consider in regards to a new business concept I was launching in Ottawa and whose name was signed to that email; Mike Hughes “Canada’s Networking Guru”

Mike’s been in the networking game for the past 15 years. He got his impressive title from a newspaper article that ran a story on him and a writer that was so impressed with Mike, his programs and his approach to networking that he called him “Canada’s Networking Guru” and it stuck. He now uses this name to identify everything he does in the area of networking. It only takes a few minutes in conversation with Mike and you know you are talking with a special individual. His rapid delivery of who he is and why he got involved in networking convinces you early in the discussion that he is the real deal. He tells you about his impressive background as Past Chairman of the Ottawa Chamber of Commerce, his life as a professional speaker at international conferences and his view that “networking is a skill you develop” and “not something you do’ and you are engaged immediately. His social capital is worth receiving and it’s sprinkled with valuable information from the get-go.

“Networking” says Mike “is a business skill that most of us should learn and don’t”. Without catching a breath, he continues “networking should be a corporate required competency that everyone should learn whether they are in management, sales or owning a business” Now Mike’s on a roll. “Networking is about building a relationship on steroids, it’s not about selling yourself or your business but focusing in on building a solid relationship with others and you have about three minutes of conversation to build a meaningful relationship with others so you need to get it right from the start.”

He then goes on to tell me more about his “Networking for Results System” which includes some 40 hours of audio and written work and his ½ day and full day training sessions. Mike says that networking is all about context, communicating effectively and contributing to others. Mike is also a man in demand. He has been training businesses people, associations, government departments, and members of Chambers of Commerce across Canada and has spoken to groups all over North America on his “Networking for Results System’. Mike has me all fired up and I want to learn more. I hope you do too. This column is just the start. To get more information and valuable networking tips from Mike Hughes “Canada’s Networking Guru” check out his website at www.networkingforresults.com.


Kensel Tracy is the Marketing Coach and is a Senior Partner with the Corporate Coachworkz Inc. (www.corporatecoachworkz.com) in Chelsea, Quebec. He is also launching Business over Breakfast Clubs (BoB Clubs) business and breakfast referral networking clubs in all cities across North America.

IBM Figures Interactive Advertising Formats will Grow

I recently read this press release from IBM. The following information was provided. IBM Global Business Services unveiled its new report, "The End of Advertising as We Know It," forecasting greater disruption for the advertising industry in the next five years than occurred in the previous 50.

To examine the factors influencing advertising and explore future scenarios, IBM surveyed more than 2,400 consumers and 80 advertising executives globally. The IBM report shows increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked.

Traditional advertising players risk major revenue declines as budgets shift rapidly to new, interactive formats, which are expected to grow at nearly five times that of traditional advertising. To survive in this new reality, broadcasters must change their mass audience mind-set to cater to niche consumer segments, and distributors need to deliver targeted, interactive advertising for a range of multimedia devices. Advertising agencies must experiment creatively, become brokers of consumer insights, and guide allocation of advertising dollars amid exploding choices. All players must adapt to a world where advertising inventory is increasingly bought and sold in open exchanges vs. traditional channels.

This gives marketeers even bigger challenges as the market is becoming even more diversified. Canadians now spend on average 14 hours per week on line. This is more time than is spent watching television. As the market changes so will advertisers. It will become more important for products to be even more consumer friendly as social networks will now dictate the next hot product. Traditional advertisers will need to work a lot harder in finding out who their audiences are and spending way more time developing customer loyalty. In the next few weeks we will talk about some of things you can do to successfully cultivate customers and find ways to sell is an every changing market.

Kensel J. Tracy is a a marketing coach and Senior Partner at the Corporate Coachworkz Inc. located in Chelsea, Quebec.