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Opening Up A Retail Store? Here's What You Need To Know
So, you're thinking about opening up a retail store? In today's digital age with same day ecommerce deliveries, your friends and family may think you're crazy; but we see genius.
According to the National Retail Federation (NRF), retail supports 1 in 4 American jobs; that equates to 42 million US jobs. What's more surprising is more than 98 percent of those businesses are considered small businesses that employ less than 50 people – just like you!
Numbers like these are very encouraging for small business owners and should give you confidence that traditional retail isn't dead.
However, that doesn't mean it's easy. Opening a retail shop and being in business for yourself can be very rewarding, but if you're not careful it can quickly go downhill. Like all other successful milestones in life, like owning your first home, it takes time, dedication, and hard work to find the perfect house and turn into a home, your home. The same applies to starting a business. You need to take the time to plan, go through the proper channels and steps, and dedicate yourself to making it successful.
So, before you jump into the retail waters head first, sit down, pour a cup of coffee, and read through this so you can understand the process and steps it takes to make your dream of starting a retail store a successful reality.
Define Your Legal Structure
The very first thing you need to do (even before you start writing a business plan, but more on that later) is deciding on a legal structure for your business. Although it's one of the less glamorous aspects of starting a company, it's also a necessity. It will affect how you pay taxes, the amount of personal liability for the debt, the ability to raise capital, and have shareholders – all factors that have a significant impact on how you operate your business. Let's take a look at the different options so you can find the one that works best for you.
Sole Proprietorship
This is by far the simplest structure, but that doesn't always mean it's the best choice. A misconception about a sole proprietorship is that it is a legal entity, when in fact it is not. It does not draw a line between the business itself and the owner. Meaning, the person who owns the business is personally responsible for the debt.
On the flip side, the tax aspect is appealing because the income and expenses from your business are included as part of your tax return, which the IRS refers to as a "pass-through" entity. This is alluring because the losses your business may suffer can offset any income you've earned from other sources and you only have to file one tax form – an IRS 1040 Form.
Also, unlike all the other business structures we're going to talk about, with a sole proprietorship, you don't need to apply to be a business. The best example of this would be freelancers. Until they take steps to license, incorporate, form an LLC or partnership, they are considered sole proprietors.
A partnership is a legal agreement between two or more individuals that form an agreement to be co-owners of the business and can have varying degrees of vested interest. The degree of investment that each individual partner owns depends on what type of partnership you set up. Here are your options:
General Partnership (GP)
With this kind of partnership, each partner participates in day-to-day operations and has control over the business and share liability as owners for debts and judgments against the business such as lawsuits. For instance, friends or family members that want to open up a retail store and all parties want to have control over management and operations, may enter into a general partnership agreement.
Limited Partnership (LP)
Limited partnerships have a general partner that is responsible for day-to-day activities as outlined above, and they also have a partner(s) who are not involved in the daily operations. Thus, they have less liability than a general partner. The most common example of this would be a silent partner. Someone who provides capital for the business but is not involved in daily operations. The only liability they have is the capital or investment they put in.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) means that all the partners share limited personal responsibility for the business and all partners can participate in management tasks and operations. The best example of this type of business is in the professional services industry such as lawyers, accountants, and financial advisors. This kind of partnership is popular amongst service professionals because it protects each partner from the debts of another that may arise from a malpractice suit or other lawsuit resulting from another partner's actions.
Corporations are one of the more complicated business structures to set up and maintain because it involves extensive record keeping, reporting, and tax requirements – resulting in higher operational costs. Like partnerships, there are varying degrees or different types of corporations you can form based on your specific goals.
C Corp
This kind of corporation is a legal entity completely separate from its owner(s). The separate entity allows the corporation to make a profit, record losses, be taxed, and held legally liable independently from the owner. The biggest advantage of a C Corp is the protection from personal liability. Conversely, the greatest disadvantage is taxation. In some cases, corporations are taxed twice – once upon earning a profit and another when dividends are paid to shareholders.
S Corp
An S Corporation is more attractive to small business owners opening up a retail store than a C Corp because it's a hybrid of a corporation and partnership. With an S Corp, profits and losses passed through the personal income tax of its owner(s) or shareholders like that of a partnership. On the other hand, an S Corp also provides personal liability protection like that of a corporation.
Limited Liability Company (LLC)
An LLC is another type of business structure that is a hybrid of a corporation and partnership. From a tax perspective, an LLC is like that of a partnership where profits and losses are passed through to the owner's personal income tax rather than filing a separate corporate tax return. Limited Liability Companies also enjoy personal liability protection like corporations do.
Another way to think about an LLC is as a more formalized partnership. You will need to file articles of organization with the state, but you won't need to hold annual meetings for directors or shareholders and keep detailed records of those meetings and major business decisions like you would if you were a corporation.
If all this talk about different types of corporations and partnerships still has you a little confused, here is a great comparison chart that will help you visualize the difference between the various structures.
Once you have an idea of the legal structure you want to use, the next step is the business registration process. Most of the time this involves filing paperwork with your state's Secretary of State Office, a Business Bureau, or a Business Agency. This varies state by state, so we recommend checking out the Small Business Administration's page on registering your business. It has some great resources that will point you in the right direction for your particular state.
SEE ALSO: How to Run a Profitable Business, (Minus the Costly Mistakes)
Everyone Needs a Business Plan
Once you've settled on a legal structure, you can start drafting your business plan. Don't worry. You don't need a degree in Business Administration to create a solid business plan. It doesn't have to be an elaborate document unless you plan on going the C Corp route mentioned above. In which case you will need a very detailed plan as a way to attract investors and file with the state. However, most retailers typically set up sole proprietorships, partnerships, or one of the hybrid structures where documentation is a less stringent.
Do You Understand the Basics of Starting a Business? Check out Small Business 101
As an entrepreneur and small business owner, it's easy to get swept up in your idea and the passion that's driving you to start a business. However, that idea and vision need a structured series of processes running behind it, or success will be hard to come by. A great first step is to really dig into your idea and fine tune the particulars. Why do you want open a brick and mortar store in the first place? Who will your customers be? What makes your idea or concept unique? What will set you apart from your competitors?
Once you've answered these questions, you need to set some goals. How are you going to make money? What's your timeline for breaking even or becoming profitable? With those goals in place, you next need to figure out how you're going to get there. How are you going to reach your goals? That my friends is where a business plan comes into play.
In simplest terms, a business plan is an outline or roadmap for your business that details your goals, objectives, and provides answers as to how you are going to reach them. It's important to draft a business plan so that you and any outsiders, such as potential partners have the framework in which to build the business. Keep in mind, business plans are not set in stone. They should be considered a work-in-progress that you will continually shape as customers respond and the business evolves.
Here are some of the elements you should include in your business plan. Take out a pen and paper, or your phone and jot down some of your answers as you read through these next sections.
strong>Products and Services
You can't have a business if you don't have anything to sell, right? This is where you get to write down all your fresh and unique ideas about why you're going into business in the first place. Are you a children's boutique that not only sells clothes but offers a monitored play area for kids so parents can shop stress-free? Write down the types of products and services you're going to provide, how they will be provided, vendor information, and future avenues for growth.
Target Market
This is where you're going to describe your target market segment, in other words, who are your customers? Using the same children's boutique example, your target customers are newborns to 5 year-olds. However, those kids can't make their own purchasing decisions yet, to sell your products, you need to attract their parents or guardians. What motivates them to buy from you over one of your competitors? Is it price, convenience, or quality of service and products?
Marketing Strategies
Since you can't assume, "if you build it, they will come," your marketing strategy is where you can get creative and figure out how you're going to attract your target customers (aka, what motivates them) and what your message is. If the quality of service is a motivating factor for your customers, what can you and your staff do to make sure they consistently receive top-notch, quality service while in your store?
You will also want to touch on how you will acquire these customers. How are you going to create a buzz about your new store? Are you going to have a website, so you come up in local searches? Will an online store eventually be part of your website and business plan? Are you going to leverage social media and target parenting groups for your kids boutique? Are keeping it more traditional and putting feet on the street to distribute promotional flyers? Or a combination of all of the above?
Pricing, merchandising, and future partnerships strategies are also areas you want to touch on under the marketing umbrella. To be fair, pricing is something that could go under your outline of products and services as well, so feel free to include it in either or both.
As for merchandising, you would want to describe the layout of your store. Are you going to put your items with the highest profit margin by the entrance of the store or are they things that need to be kept in countertop cases?
Future partnerships can include things like partnering with other local businesses or community organizations that complement your business, thus broadening your reach.
SEE ALSO: 26 Inexpensive Customer Appreciation Ideas
Employees and Staff
As much as you've said to yourself that you don't need to hire employees or you can handle it all yourself, chances are you're going to have to hire some employees. Afterall, you're a business owner, not a freaking magician! You can't be there all the time and if you are, chances are your personal life will quickly get neglected – and nobody wants that.
Describe what your staffing requirements will be by day of the week, peak times throughout the day, and any seasonal peaks that may be relevant such as back to school or holidays. How are you going to find these employees? Where are you going to post jobs? What does your screening process and training process look like?
Financial Forecast
Last but not least, a business plan needs to include a financial forecast. You are taking into account all the information mentioned above, and then some to determine a month-by-month snapshot of your revenue and expenses.
The best way to do this is with a pro forma statement. Pro forma statements are used to measure or project future profits of the company. Typically, this is best done using historical data that can easily be pulled from a POS system like ShopKeep, to find your sales revenue and Cost of Goods Sold (COGS) on a monthly or yearly basis. You will also need to subtract your expenses and operational costs for the same period to determine your actual business performance – and use that to create your pro forma.
If you don't have historical data because you're a new business, you will simply have to estimate these numbers, within reason. You can base them on factors such as your profit margins and reasonable growth from your marketing efforts. Remember to subtract your projected start-up cost, which includes operating expenses such as payroll, and rent for retail space.
Pick Your Business Name
Before you can move on to the next step in starting a business (getting a few licenses and permits) you'll need to pick your business name. This might seem a little superficial, but your business name is going to factor into many of the different aspects of running a business, so give it some thought.
A business name can run the gamut from straightforward and logical to quirky and unique. The choice is up to you, but we recommend picking something that reflects the brand identity you're trying to create. Once you have your business name nailed down, you will want to ensure that it isn't already trademarked or in use, and register it with the appropriate authorities.
Once you're done with that, we recommend buying the domain name for your business and creating accounts for it on social media platforms like Facebook, Instagram, and Twitter. You should do this even if you don't plan to launch a site or do any social media marketing immediately. The chances are good that you'll want to start doing these things down the line and that'll be much easier if you already have the accounts and domain name under your control.
Licensing and Permits
If you're opening up a retail store, you're going to need a few permits and certificates that often come with a side of retailer license. Failure to obtain the proper permits and licenses can result in a criminal offense and or carry a hefty fine depending on state law. While filing for permits may be frustrating because you're dealing with government agencies, it is without a doubt a must-do.
Employer Identification Number (EIN)
This is probably the quickest, easiest, and most important for filing taxes. An EIN is like a social security number for your business. It's a way for the government to identify you. Simply go to the IRS website and apply for an EIN. Once the application is complete, it is validated through an online session and issued on the spot.
State and Local Licenses
Since the federal government, the states, cities, and counties have their own requirements for a business license the best advice we can give you is, check with each agency to determine the proper ones needed for your business. The Small Business Administration (SBA) is a great resource for federal and state agencies. As for city and county agencies, this can either be done online or via a phone call or visit to the county clerk's office.
One thing to note is that most retailers won't require federal licensing. If you open an apparel store or are a marijuana retailer, chances are you won't need a federal license to do so. The federal government does not regulate clothing, and the latter is technically still illegal under federal law; although more and more states are permitting the medicinal and recreational use of it. On the flip side, if you're a wine shop or convenience store that sells alcohol or tobacco, you will most definitely need a license from the federal government to sell such products.
Resale Certificate
As a retailer, you are going to buy products from vendors or distributors and then resell them to your customers. A resale certificate allows you to buy these items without paying tax to the seller.
Seller's Permit
A seller's permit allows you to sell your products in the state and also recognizes you as an entity that collects sales tax.
Certificate of Occupancy (CO)
Any brick and mortar stores, or even pop-up up shops (depending on local regulations and duration of time) will require a CO. This ensures that the building is in compliance with building codes and other laws that make it suitable for occupancy.
Choose Your Business Tools
Now that you've registered your business, and put together a business plan, your next step in starting up is choosing the tools you want to use to run your business. Here's are some of the major tools you'll want to account for:
Point of Sale (POS) System
Sure, you can use a cash register if you really want to, but most small business retailers will get significantly more value out of a tablet-based POS system. Not only will this system allow you to process transactions with all major payment types (credit card, debit card, cash, NFC, etc.), but you also get access to advanced reporting, inventory management tools, and employee management capabilities that can help you grow sales and run your business more efficiently.
Accounting can be one of the most frustrating aspects of running a small business, which is why we recommended getting signed up with accounting software as early as possible. There are a number of systems designed for small businesses, like QuickBooks and Xero. The choice is up to you, but we recommend selecting a system that integrates with your POS system to allow for streamlined and accurate accounting.
Email Marketing
Marketing can be another challenge for small business, but if there's one area you dip your toes in, we recommend choosing email marketing. The reason why is simple. It's one of the easiest forms of marketing to grasp and it delivers an incredible ROI. Like your accounting solution, we recommend choosing an email marketing platform that integrates with your POS system. This will allow you to import customer email addresses collected at the point of purchase with your POS system to your email marketing platform
Sure, your initial business idea might not have included an online store, but with the way retail is transforming, it would be shortsighted not to at least think about this need from the start. There are dozens of ecommerce platforms out there, a select few are designed specifically for small businesses just getting started with selling online. Platforms like BigCommerce make it really easy to get an online store up and running at a very affordable price. With the cost being so modest, if you decide selling online isn't for you, you aren't out a ton of money.
Like with accounting and email marketing, we highly recommend that you choose an ecommerce platform that integrates with your POS. The functionality you're looking for is inventory syncing. This will ensure that if you sell something online or in-store, it's reflected in your master inventory management.
We hope that this has helped provide some guidance and insight into how to open a business. Also, if you've been paying attention, you'll notice that there is an essential element missing about opening up a retail store. That's right. It's startup cost. We feel that this is such an important topic that it deserves an entire blog post dedicated to it – so, stay tuned! In the meantime, check out How to Start a Small Business 101 for more tips and tricks.
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Opening the heart is vital to spiritual awakening, healing and achieving wholeness.
However, for many of us, opening the heart means opening to a lifetime's accumulation of unacknowledged sorrow, both our personal sorrows and the universal sorrows of warfare, hunger, old age, illness, and death. Sometimes we may experience this sorrow physically, as contractions and barriers around our heart, but more often we feel the depth of our wounds, our abandonment, our pain, as unshed tears.
Meditation is an invaluable tool in healing the heart as it gradually opens. When we meditate, the grief we have carried for so long, from pains and dashed expectations and hopes, arises. Our task in meditation is first to let them move through us, then to recognize them and allow them to sing their songs.
What we find as we listen to the songs of our sorrows, loneliness or longing, is that they do not stay forever. As we heal through meditation, our hearts break open to feel fully. We grieve for our past traumas and present fears, for all of the feelings we never dared experience consciously. However, out of this grief work comes deep renewal.
Eternal True Nature
Because I practice the Inner Light and Sound Meditation, I can only speak from my experience with this meditation; there may be similar experiences with other types of meditation.
For those of us who practice the Inner Light and Sound Meditation, we will gradually realize and experience our True Eternal Nature and God-Source. The more we realize or experience Source, the more blissful we become. We truly know that all humans are Eternal Beings of Consciousness or Spirit!
We never "die"; there is no "death". Only our physical body ceases to function at the end of our time here on Earth; we just change out one form of clothing (physical body) for a lighter form of "clothing" (light body, crystal body, plasma body, spirit body, etc.) as we ascend or (move higher or more inward) on the inner spheres. Life in eternal!
Ascension Planet
Our planet Earth has attained the status as an Ascension Planet in December 2012. I wrote about this in the article, Life After Death, if you would like to read more about it.
Gradually as our planet ascends and becomes lighter, the future generations of humanity will bring back the potential of true biological ascension and transmute their physical body to light, thereby taking their physical body with them when their incarnation on Earth is complete.
There will be no more warfare, hunger, old age, illness, and death when Earth ascends to a higher dimension and becomes a Star, which will come to fruition hundreds of years from now in linear time. In Truth, Earth is already a Star and has already ascended in the Eternal Now. We just need to raise our consciousness to experience life in the higher dimensions while having a physical body.
The more we know Source, the more we experience life in a loving and safe Cosmos, even though there are still warfare and other problems on this physical planet. We are transitioning into the New Age of Enlightenment or a Thousand Years of Peace in the Golden Age, so it will take some time, but we will get there. : )
The more we know Source, the more we experience all of our needs being taken care of, and that we live in an abundant Universe.
Healing a Broken Heart
There's no question that breakups can be painful, and that it's difficult to trust and love again. But there are ways to get past the pain. Here are 17 techniques on how to mend your heart and to move on.
1. Take time out for yourself: Take a week, a month or longer to do whatever it is you love most. Whether it's surfing, hiking, gardening, reading, cooking or simply being around your friends. Use the opportunity to surround yourself with happy people and do the things that make you happy.
2. Go through it, not around it: You have to grieve in order to move on. By going through the pain, you eventually will surface as a stronger person ready to tackle problems head on. Soon the pain will lose its stronghold over you.
3. Start a journal to record how you feel: Writing things down can be a powerful release. It's called "catharsis," where you purify your mind through expression. Write about whatever you want to write about. You'll feel a lot better after you do.
4. Stand on your own: You don't need anyone or anything to make you happy. That job is all your own, with a little help from God.
5. Remove all the memories of the person from your everyday life: You're not trying to pretend like the person never existed, just temporarily forget how much they meant to you and how they broke your heart. Go through your room and remove all pictures of, letters from, references to the person you're trying to stop obsessing over.
6. Detach: The Buddha taught that attachment leads to suffering. So the most direct path to peace and happiness is detachment.
7. Exercise and eat right: Go the gym or get outside and sweat. Physical activity increases the amount of serotonin in the brain, which acts like a natural antidepressant, improving your mood. Eat a diet rich in fruits and vegetables, nuts and legumes, whole grains, and water. These will not only make you look fantastic, but feel fantastic as well.
8. Gratitude: Make a list of what you do have in your life and be grateful for them.
9. Volunteer: Learn to give back to your community, however big or small it is. Volunteering will help you see the real impact you have on people's lives. When you turn your attention to helping another person or working for a worthy cause, you forget about yourself and your loss.
10. Learn from your mistakes: Everyone makes mistakes. It's how you learn from them that defines you as a person. Figure out what went wrong in your relationship, or what wasn't so great about the other person. This way you can grow in the future, or look for better traits in your next partner.
11. Forgive the other person: Forgiveness is an important part of healing your broken heart. In order to move on, you need to forgive the other person, or you'll constantly be thinking about them or wondering why they hurt you.
12. Laugh and cry: Laughter heals on many levels and so does crying. You always feel better after a good cry. So go grab a box of Kleenex and cry your afternoon away.
13. Channel your energy into new activities: What we miss when a relationship ends is that we can't express our love anymore. We can't express our excitement to someone who's interested because they're interested in you. You can continue this form of heartfelt expression, however, by writing poetry, drawing, painting, singing, dancing, etc. Do whatever it takes to allow you to transform your pain into something productive.
14. Pick up a new skill: Try doing something you know little about, so it forces you to engage in the world in a different way. Try glass-blowing, ceramics, a new instrument, or sky or cave diving. Be adventurous and open to new possibilities.
15. Traveling: Take a trip. The world is such a big, beautiful place; you should take advantage of it. Traveling, meeting people, and new sceneries can do wonders for your broken heart.
16. Remember the two-year rule: It takes two years to learn a new job, two years to get accustomed to a new town, and two years to completely heal a broken heart.
17. Love deeply. Again and again: Once our hearts are bruised and burned from a relationship that ended, we have two options: we can close off pieces of our heart or we can love again. Henri Nouwen urges to love again because the heart only expands with the love we are able to pour forth.
Time and Faith
Believe it or not, broken hearts DO heal. One of the best healers is time. The other is faith. Below are 10 spiritual healing quotes for a broken heart. May they bring you peace:
"The wound is the place where the Light enters you."
– Rumi
"When one door of happiness closes, another opens, but often we look so long at the closed door that we do not see the one that has opened for us."
-Helen Keller
"Be still my heart while God is healing me inside!"
– Marcia Bundalian-Stephen
"As you grow older the call comes from your intuition and your deepest sense of self to search for a spiritual identity and find meaning in life."
– Lynne Namka
"We must be willing to let go of the life we have planned, so as to have the life that is waiting for us."
– E.M. Forster
"Love bears all things, believes all things, hopes all things, endures all things."
– Corinthians
"When love is lost, do not bow your head in sadness; instead keep your head up high and gaze into heaven for that is where your broken heart has been sent to heal."
– Author Unknown
"Pain is inevitable in life, but suffering is optional."
– The Buddha
"No matter what pain you've been through, tears will dry, broken hearts will heal, and somewhere out there the person who truly cares is waiting."
– Author Unknown
"You never lose by loving. You always lose by holding back."
– Barbara De Angelis

subset: commoncrawl


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Children, grandchildren and friends of the Palmer Woods community couldn't have asked for a more beautiful day to hold our first annual Harvest Fest! On Saturday, October 25, 2014 kids and adults of all ages enjoyed the sun-shine and snacks, as well as watching the youngsters jumping in the bounce house castle (perfect for the princesses that attended). The parade (or should I say walk around the block) provided additional time to get to know the kids of the community, admire their colorful and varied costumes, and give the youngest ones a chance to rest their eyes. The warm generosity of the community was evidenced by the large amount of donations received! There are too many donors to list in this article, but you know who you are and, on be-half of the kids that attended, a HUGE THANK YOU to one and all! Additional heartfelt appreciation goes out to the members of the Children's Committee and the additional volunteers who turned out not only to set up the canopy and tables, but to organize, fill and distribute the treat bags as well. We're fortunate to live in such a wonderful community – Palmer Woods is truly the perfect place to raise a family!
We called this event the "First Annual Harvest Fest" because the intent is to do this again next year. Whether you have suggestions for how it can be improved, want to assist in the planning, or would like to join the Children's Committee to continue organizing additional events/outings for the kids and grandkids in the neighborhood, please reach out to me. firstname.lastname@example.com or (248) 918-7273.


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Banks are prepared to help deter a financial crisis
While COVID-19 is first and foremost a health crisis, Canada's central bank and the Federal Reserve in the United States were quick to recognize a pending financial crisis, lowering overnight lending rates in unprecedented, unscheduled moves.
The Fed's rate is now a range of zero percent to .25 percent, while the Bank of Canada's (BoC) is .75 percent.
"Each institution is acting within its respective mandate to deliver a powerful confidence-boosting package of measures for consumers, business and financial markets," said BoC governor, Stephen Poloz. "For its part, the Bank of Canada has been working hard to ensure the financial system has sufficient liquidity so that credit continues to be available to businesses and households."
BoC also took action to maintain market functioning and credit availability and broadened eligible collateral to help maintain funding conditions by providing a backstop to regular private funding, said Poloz.
"The Bank is also providing extra support to the Canada Mortgage Bond market so that this important funding market continues to function well," he said. "In the days to come, the Bank will launch its new Standing Term Liquidity Facility. This new funding mechanism is focused on individual financial institutions rather than the market as a whole. It is intended to give an eligible institution that is viable, but facing a sudden stress to its liquidity, access to central bank liquidity on terms that are known in advance. Governing Council hopes that institutions facing liquidity issues will make use of this new facility."
The Canadian government also announced proposed changes to the stress test qualifying rate for insured mortgages, scheduled for April 6, have been put on hold. Similarly, a change for the uninsured mortgage stress test being considered by the Office of the Superintendent of Financial Institutions has been put on hold.
Following the BoC move, Canada's six largest banks announced plans to provide financial relief to Canadians impacted by the economic consequences of COVID-19.
"Effective immediately, Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank have made a commitment to work with personal and small business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges such as pay disruption due to COVID-19, childcare disruption due to school closures or those facing illness from COVID-19," said the banks in a combined statement. "This support will include up to a six-month payment deferral for mortgages and the opportunity for relief on other credit products. Individual Canadians or business owners facing hardship are encouraged to contact their bank directly to discuss options that could be available to them."
How does it all affect mortgage holders or those thinking of getting a mortgage at the new, lower rates?
"Mortgage lenders across Canada dropped their prime lending rate by 0.5 to 2.95 percent. This means that they have passed along to consumers the entire emergency rate cut that the Bank of Canada announced," says James Laird, co-founder of Ratehub.ca and president of CanWise Financial mortgage brokerage. "Most Canadians who currently have a variable-rate mortgage or home equity line of credit will benefit the most from this as most will see their rate drop by one percent."
It is important to point out here monthly payments may not necessarily drop, but more of your payment will go to paying down the principal. Check with your bank if you have any questions.
The Canada Mortgage and Housing Corporation (CMHC) will assist Canadians struggling to make mortgage payments, says Laird.
"CMHC has made it clear that Canadians who are struggling to make their mortgage payments will have options in order to save them from a potential default," he says. "Any Canadian who will be unable to make an upcoming mortgage payment should reach out to their lender before they miss the payment to discuss options and come up with a plan that works for their financial situation.
"The goal of lenders and CMHC is that no one will default on their mortgage as a result of COVID-19."
For what to expect in the coming weeks, watch the bond market, says Penelope Graham, managing editor of Zoocasa, an online financial information portal.
"While the BoC's movements do not directly affect the fixed cost of borrowing, rate reductions will ultimately be felt across that market, as well. That's because in times of economic uncertainty, investor demand for safe-haven investments such as government bonds, rises. That in turn causes bond yields to drop — they have an inverse relationship with investor demand, as the maturity payoff tends to be lower for low-risk investments," says Graham. "Banks, meanwhile, take their cues from bond yields for their fixed borrowing products, meaning further discounts will be made available to those looking for a new fixed-rate mortgage or those looking to renew or refinance their existing one. It should be noted, though, that as fixed mortgages are locked in, anyone mid-term will not be able to take advantage of today's lower rate environment, unless they break their mortgage early."
The BoC likely isn't done, with markets fully pricing in an additional 50 basis points reduction on April 15.
"We are closely monitoring market developments and we stand ready to provide all the liquidity the financial system needs so that it can continue to serve Canadians," said Poloz.
Copyright Postmedia Network Inc., 2020


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On day three of Hubspot's Inbound Conference 2012, it's clear that content is king. Of 64 sessions, most were about using content; creating content, managing content, sharing content, or tracking content. There were many examples of content in the wild, most of it textbook-perfect material designed to appeal to customers and drive shares and inbound links. That's the point.
Monthly Archives: August 2012
The Apple v. Samsung Decision: What it Means for Mobile Content
By now you know the news: Samsung lost. Big. The company will have to pay Apple at least $1.05 Billion in royalties for infringing on iPhone patents, boosting Apple's bank account by about 1%. But some other companies got caught in the crossfire, notably Google, maker of the Android operating system. Samsung is the largest maker of smartphones running the Android OS.
The Samsung devices affected are mostly older models like the Galaxy S II and Epic 4G. This pulls the rug out from under your smug friends who ran out to get those cool Android phones, because they were really just iPhones. Ha ha.
Keyword Filtering In The Real World: The HubSpot Inbound Conference 2012 – Day One
How about a little reality today?
I'm on the train headed to the Hubspot Inbound Conference 2012 in Boston. After a big hiking weekend and a 5K run this morning to get the kinks out, I'm treating myself to a hazelnut coffee and a smoothie (I need 10K to earn a bagel), and of course I'm reading new articles about content marketing, e-learning and how to get more inbound links. All before the conference opens at 8AM.
Inspire People to Action: How Online Video Drives Your Inbound Marketing Strategy
What makes people respond to your content? Not everyone is inspired to act by text, but it's been proven that photos and videos work better than words. ComScore reported that online video improves sales effectiveness when landing pages and e-commerce sites include them. In fact, social videos work better than television. What is it about video that drives inbound clicks?
How Daydreaming Drives Creativity – #PowerToThePen
Ever have an epiphany? Some days I have them several times, and some days nothing happens that warrants notice. Actually, I think the epiphanies still happen, I just don't notice or have the wherewithal to record them.
The best ones, of course, are written down and acted upon later. Sometimes much later. Sometimes I'm sitting there, or doing something like running, and it just hits me unannounced. Sometimes I have to flex some mental muscle and force a thought into existence. It reminds me of the difference between Mozart and Beethoven.
Did you ever notice how much it helps to have a pen? You can write down your epiphany, or better yet, doodle it and make it a #PowerToThePen entry:
Ambush Marketing at the Olympics: Driven By Social Media and Online Video
During the 2012 Olympics in London, between online streams of Gabby Douglas' brilliant gymnastics performances, Kayla Harrison winning the US first-ever gold medal in Judo, and Usain Bolt's blisteringly-fast 100m and 200m wins, web audiences were also wowed by clever marketing campaigns from Nike, Pepsi, Burger King, and Google. Consumers voted the four companies among their top 15 favorite Olympic brands, sharply illustrating the success of traditional event sponsorship.
Or does it?
Besides these four companies not actually being Olympic sponsors, there was one other thing they all had in common:
They all used social media or online video heavily, and often both.
So Your Videos Aren't Viral: 6 Ideas For Putting Them To Work
Awhile back I wrote about whether viral video matters. For any company that needs to make a big splash in the social realm, it might. But for the rest of us, who stand a one-in-a-zillion chance of making a viral video by trying, what really matters is the success of our overall video strategy. Here's a hint: it's not measured in views.
But what criteria should we measure the success of a video campaign? I've talked about the 8 most important video metrics, too, and guess what? Views weren't one of those, either. Instead, the measurements were about shares, conversions, playthroughs, social engagement, and search activity driven by your videos.
Let's Talk About Transcripts: With Ed Youngblood and Alisha Magilei
Online video transcripts are all the rage!
Actually, they aren't, not yet. You may notice you rarely see a transcript with a video, whether you find it on a blog, on YouTube, a social site, or get a link through Twitter or email. I know it usually stops me in my tracks, because I don't want to make a lot of noise in the office. I'd rather read a transcript to get the idea.
But I just don't see enough of them. I've written about the reasons that businesses should use online transcripts to go with their marketing and training videos. Despite this, a lot of online videos still go without.
Teavana: Beyond the limits of built-in obsolescence
What are the limits of built-in obsolescence in product marketing?
We know that companies like Apple and Ikea are constantly upgrading their stuff in the quest for more money and more capabilities. Customers line up around the block for a chance to buy the latest gadget, and in most cases people know what has been improved, even if they don't know why they need it.
Sometimes a company replaces their stuff to try to trick buyers, like redesigning a box of crackers or shaving cream, just to keep people wondering what's been improved. Every so often, a company needs to phase out products or reset their product mix to force consumers out of a trance.
The Rules of Slideshow Presentations: How To Get It Right
Recently I posed a question on LinkedIn: "What Are Your Rules For PowerPoint?" and got a wide array of responses. The answers ranged from "Keep it simple, stupid" to long treatises on how different businesses could use them. There was more than one admonition to just use Keynote.
My intention was to gauge how people use Microsoft PowerPoint, or any slide presentation tool in general, and find out what really irritates them when they see slideshows. I've already created my own video presentation called "Optimizing Slide Presentations: Don't Think of it as PowerPoint", in which I explain that you really have to follow rules that meet the needs and expectations of your own audience, be they B2B, B2C, investors, media, or anybody else. This question was about listening to the people rather than pushing my own agenda.