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Tips on Expanding to the Global Market

There are a lot of opportunities for businesses in Canada, but with today’s technology disruptions it’s easier and easier to enter the global market. It used to be that, to expand in foreign markets, small and medium sized businesses (SMEs) needed to invest heavily, hire local staff, and establish a local office, warehouse or manufacturing operation. That’s no longer a given as technology recognizes no physical borders. In 2014 the Mckinsey and Company said:

“Flows of goods, services, and finance reached $26 trillion in 2012, or 36 percent of global GDP, 1.5 times the level in 1990. Now, one in three goods crosses national borders, and more than one-third of financial investments are international transactions. In the next decade, global flows could triple. Our scenarios show that global flows could reach $54 trillion to $85 trillion by 2025, more than double or triple their current scale.”

If you are planning on going global, here are a few things to consider.

Know your market

Don’t just assume that your success in Canada will automatically translate to different countries. For some places (like the US) the market might be very similar, but even in a place like the US you need to do your homework. You need to be aware of the different legalities in place and local competition. These factors can vary greatly within a market as well.

Be in it for the long haul

You need to be prepared to wait. Traditionally, most companies don’t start producing a positive cash flow in a new global market for two to five years. Plans often get interrupted by bureaucratic issues, and currency fluctuations can wreak havoc with profit margins. Because of the many potential complications, it is good to focus on one market at a time and not expand too quickly.

The government wants to help

Canada provides many resources for businesses looking to expand outside of the country. Export Development Canada (EDC) and Business Development Canada provide insurance and financing for goods and services exported from Canada. Also Industry Canada, EDC and Foreign Affairs, Trade and Development Canada (DFATD) offer data on various locations economic, social and political factors. They can also provide help in making business contacts in your chosen market as well as help you select local service providers such as lawyers or accountants.

Understand the culture

How to do business can vary across cultures and really put a wrench in your plans if you’re not prepared. You need to be familiar with local customs and how they view and develop business relationships. Many find it helpful to partner with a local business person, especially when different languages are involved.

Planning is key for the global market

A good plan is vital when expanding your business. The seismic changes in technology have helped make doing business across boarders more achievable for SMEs but you can never take success for granted. Political, social, environmental and economic factors will always be in play and can dismantle even the most carefully laid plans.

Talk to us at Inclera to find out how we can help you expand your business.

History of Payment: Credit Cards

Credit cards–embraced for their convenience, are both loved and resented. When used responsibly, they offer innumerable perks, but abuse them and, beware, interest-ridden troubles ahead! It’s hard to imagine a life without credit cards, so we decided to go back in time and see the history of how credit cards became a necessity in the modern consumer’s wallet.

The Origins

Credit cards originated in the 1920s when firms such as oil companies, hotel chains, and big department stores were issuing out their own purchase cards. These cards were similar to modern store cards and could only be used for purchases at those individual company outlets.

The first bank-issued charge card came in 1946 when a Brooklyn banker named John Biggins launched the Charg-It card, which allowed customers of the bank to use it at local merchants.

The next two cards that came out were the Diners Club Card in 1950 and American Express travel and entertainment card in 1958.

How It Worked

The original system charged cardholders an annual fee and then billed monthly, charging the store merchants a 7% service charge. Accumulating interest didn’t come until a few years after the first cards.

The first credit card machines relied on imprinting information from a card to a piece of carbon paper and getting the customer to sign it. This wasn’t always a secure method due to dumpster-divers finding old copies of credit card information in-store trashcans.

Major innovation on payment processing came in 1979, when MasterCard invented the magnetic strip and the point of sales system was invented. This was the beginning of the payment processing units as we know them today!

Rewards Systems

Credit card rewards systems did not come out until the 80s – this was due to credit card companies needing a more unique selling point for their cards. In the earlier years, the biggest selling point for a card company was how many merchants accepted them, but as all cards became accepted everywhere, more unique distinguishers were needed.

Present Day

Still, to this day, payment processing continues to evolve. Recently, the use of “tap” on machines has allowed consumers to use their credit cards more conveniently and sometimes not even at all when cards are swapped for phones with Apple Pay.

Don’t get left behind–help your business evolve with the latest payment processing trends. Inclera partners with you to provide payment processing, financial planning, and analytics solutions to take your business in the right direction. Want to learn more about what we can do for you? Follow us on social media!

How to Use Artificial Intelligence in Your Small Business

The customer is at the centre of every business and what they are looking for is constantly changing. Luckily advancements in Artificial Intelligence (AI) are allowing businesses to target and carter to clients like never before.

But this isn’t something just big companies are looking at; local businesses can use AI too. Some of the top reasons for using AI are identifying business opportunities, improving employee productivity and competing with other businesses. Here are three ways to use it.

1. Personalization

Using data science to analyze user behaviour, preferences, feedback, and characteristics allows businesses to predict behaviour and personalize experiences. This helps increase engagement, something no business can afford to ignore.

McKinsey and Company research found that brands on top of artificial intelligence personalization mined five to eight times the marketing Return on Investment (ROI) and sales growth of 10% over those companies that didn’t. With statistics like these it’s time to look at how you can personalize your customers experience.

But it doesn’t take big budgets and data scientists to apply these principles to your small business. There are affordable third-party programs like Adobe’s Marketo, Salesforce’s Pardot and the USA Today Network’s LOCALiQ that can provide the information you need to shape your business with your customer in mind.

2. Predictive Analytics

Predictive analysis is the ability to analyze data and make predictions about customers. Doing this can help you identify customers that are ready to buy. It also can help you identify potential customers so you can focus your multiple marketing strategies towards them.

It’s not just social media and online platforms that provide this data but Point of Sale (POS) systems like Inclera provide analytic services drawn from your transactions, finding the patterns in your customers’ buying habits. Research from Dresner Advisory Services show that only 23% of businesses are using predictive analytics. That leaves a large window for you to gain an advantage over your competitors.

3. Voice Recognition and Response

So far, the most readily available voice assistants have been marketed for home, but they also offer usefulness for businesses. Google has said that already 20% of all searches are done by voice, and with over 43 million smart speakers sold in America it’s only a matter of time before their use in an office environment is the norm.

Speech recognition and virtual assistant devices cut down on data input time, allow you to remotely manage the office and help you organize everything and bring it up quickly and easily. You can get information on anything, from orders to inventory, simply by asking.

Small businesses can access these tools and their easy-to-use interfaces to save them time and money and increase competitiveness in this increasingly data-driven economy. Inclera’s analytics help you move into this new world of artificial intelligence for business.

Five Barriers Facing Canadian Small Businesses

Small and medium-sized enterprises (SME) are the backbone of the Canadian economy and are defined as any business with 500 employees or less. That covers a lot of industries and many different challenges, but there are five barriers that all of them, especially small businesses, face.

1. Attracting high-quality employees

Employees are at the center of a successful business and employee turnover is a continuing issue.

The best way to tackle the challenge is to focus on effectively branding recruitment plans and training practices. Today’s employees are looking for a workplace that mirrors their values and takes into account their desire for a work/life balance.

Luckily in Canada both the provincial and federal governments offer grants for hiring and training. From hiring new employees to training long term ones in new skills, there are many programs to fit a variety of circumstances.

2. Enforcing contracts and collecting what you’re owed

The success of SMEs is often based on a limited number of contracts or customers. Issues of payment with one client can have a huge impact on the bottom line and can take a lot of time to resolve.

In 2017 the World Bank reported that in Canada it took 910 days on average to resolve such conflicts, up from 570 days in 2003. In comparison it only takes 420 day in the United States. Part of this comes from the tendency of Canadian courts to provide multiple opportunities to grant delays in an effort at fairness.

To help prevent this, be organized and provide clearly defined contracts that are easily available for review. Communicating well with clients can avoid unnecessary delays in payment.

3. Government regulation

Currently there are a lot of unhappy small business owners in B.C. as the government has just started collecting a new employer health tax. The tax rate is based on payroll totals, so it does take into account business size, and though they have lowered the corporate tax rate for SMEs to offset the costs, there is still concern.

Changes in regulations and taxes are constantly impacting bottom lines. It’s important to stay informed and partner with business organizations so as to have a say in potential adjustments.

4. Access to funding for growth

Traditional bank financing is often not an option for SMEs due to lack of available security for a loan. The Canadian Small Business Funding Program (CSBFP) makes it easier to get loans as the government shares the risk. Participating in the CSBFP can speed up the approval process and lower the interest rate so it’s a good idea to utilize this resource even with access to traditional loans.

5. Being ready to sell

Many privately-owned small businesses don’t think about this until it’s to late. Personal circumstances, market fluctuations and competitors looking to buy can come at any time, and many are not prepared.

To be ready have a clear outline of the businesses track record and financials for at least a few years and a clean balance sheet. Pay attention to assets and debt and be knowledgeable about market trends, the neighbourhood status of locations and new competitors.

Inclera partners with you to provide payment processing, financial planning and analytics solutions to take your business in the right direction. Follow our blog and social media to learn what we can do for you and what’s happening in your market.

How Inclera Supports Your Small Business Needs

At Inclera, we’re small business owners just like you. Whether you own an e-commerce store or a physical space, we want to ensure your small business needs are met (and are financially viable!). We don’t believe in locking our customers into long-term contracts: as business needs change, so do your needs. Inclera offers flexible options that are commitment-free, so whether your business needs are centered around point of sale (“POS”) terminals or complete payment processing packages, we have you covered.

Now that we’ve determined your small business needs, we’re also here to tell you that you’re not alone. You don’t need to understand how payment processing works, nor do you need to navigate this alone. We have a team of dedicated professionals to answer all of your questions, plus, we are diligent in making quarterly visits to all of our merchants.

Do you know what your payment data says about your customers’ purchasing and the steps you should take to grow your business? We do. Our human support team provides analytics and sales reports to review the numbers with you, so you don’t have to make sense of it on your own. At Inclera, we focus on payment processing and solutions so you can focus on growing your business.

Have we peaked your curiosity? If so, contact us for a free quote. No commitment needed – only opportunities to grow your business!

Seven Tips for Small Business Owners

At Inclera, we’re committed to helping small businesses, entrepreneurs and startups achieve growth. Small businesses are the lifeblood of our communities, and we want to see them thrive. To that end, we created our affordable, all-in-one payment processing system, but our commitment doesn’t stop there. We support small businesses by sharing insights and tips for building successful and sustainable companies.

Here are seven of our top tips for small business owners:

Tip #1 – Choose your team carefully

As a small business owner, your team is everything. Even one bad hire can have a big impact on the success of your business. Conversely, the right person can be the key to growth. In short, a business’ success starts with its people.

Tip #2 – Share the workload

Running your own business is a huge responsibility, but you don’t have to carry the weight of that responsibility alone. Once you have the right people, lighten your load by delegating responsibilities. This will allow you to focus on the things that matter most.

Tip #3 – Invest in your team

It’s one thing to hire the right people but keeping them is another matter. Make sure your team feels valued and invest in their growth. That way, you can all grow together as a business and a team.

Tip #4 – Foster positivity in the workplace

Part of retaining your people is creating a place where they look forward to going to work. An open-door policy and the occasional team lunch can go a long way. Create a positive atmosphere, and not only will your team enjoy coming in to work, you will too!

Tip #5 – Celebrate wins

Celebrating wins, however big or small, will contribute to a positive environment. Not only that, it will make the team feel like their work is important and has purpose. There are lots of milestones when starting a business, so take the time to celebrate them together!

Tip #6 – Stick to your values

As a small business, it’s critical that you understand and stick to your company values. These are the early days, and they will determine what your business looks like five, ten years from now. Always make decisions that align with your values in order to build a bright future.

Tip #7 – Simplify your processes

The day to day of running a business is a complex machine. But these days, we have machines that can help! Research and adopt new technologies to simplify your processes. This will free up time and resources that you can re-invest into growing your business.

Running a small business is challenging, but it’s also one of the most rewarding experiences you can undertake. As the leader of a company, you have a lot of responsibility, but remember, you are not alone. Your team is there to support you, and so are we!