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As a condo board member, I've been asked on several occasions at AGMs to discuss the benefits of having a professional property management company take over the management of our self-managed condominium. Every unit owner in our building knows that this will mean an increase in our monthly condo fees, but will the benefits make the extra costs worthwhile? Let's look at the pros and cons of hiring a professional management company vs self-management by the condo association.

1. Cost

There's no doubt that hiring a property manager will cost more than having the condo board / HOA manage the project. Monthly condo fees will need to cover those costs, and no unit owner likes to hear that his or her fees are going up. So self management is an attractive option to the owners in general.

However, if you calculate the value of the time the Board members put into looking after condominium issues, it becomes apparent that there's also a large personal cost to these folks that the other owners don't see. Whether or not the project is self-managed, the condo association will still have to hire professionals to handle legal and accounting matters. These are roles the Board members cannot fill themselves unless they have the skills, training and expertise. And even if a Board member is qualified to provide legal or accounting services, the ethics and the legality of such an arrangement would be questionable.

Advantage: Professional management company for expertise and optics

2. Service Level

Individuals who serve on condo boards are typically career people who work during the day and must rely heavily on contractors and resident volunteers to take care of situations that arise while they're at work. This can be frustrating to an owner who has a plumbing problem and can't reach the Board members when the problem arises.

In emergency situations when time is of the essence, it's very important for the affected parties to contact plumbers, electricians, or other service people quickly to mitigate the damage as much as possible. This could be difficult in a self-managed scenario if it occurs at a time when all Board members are at work or away (such as over Christmas or a long weekend - we had just such an instance during my last stint on my condo board). That's when a professional property manager, with a 24/7 emergency line, is ideal. Owners have more peace of mind knowing that no matter what happens, they'll be able to reach someone to deal with the problem - day or night, 365 days a year.

Advantage: Professional management company.

3. Disputes, Violations and Sanctions

Managing a condo or strata sometimes means acting as a collection agency, an enforcer, or an arbitration panel. Imagine having to levy a fine against one of your neighbors because they've violated the Bylaws, or calling the police to deal with a noise complaint or (worst case scenario) to break up a domestic dispute. Those are all situations that our condo board has had to deal with on more than one occasion.

If the sanction is coming from one of your neighbors instead of a third party management company, it's much more personal and is more likely to result in a strained relationship between the parties, if not an outright rift. It's also stressful for the Board members when they have to deal with unpleasant matters like collecting overdue fees and assessments or issuing warnings to fellow owners over infractions. A property management company can handle these situations in an impersonal and detached manner, which allows the Board to maintain a neighborly relationship with the other owners.

Advantage: Professional management company.

4. Community Involvement

A self managed building relies heavily on its volunteers. Getting other owners involved in running the condominium creates a deeper sense of community and instills an even greater pride of ownership among the unit owners. The people in our building routinely volunteer to look after flower beds, help out with sanding of the parkade ramp in winter, run the trash compactor, and sort recyclables. A condo management firm does not have the same relationship with the owners that the Board members do, and in a self managed condo the Board has the opportunity to solicit help and support from other unit owners in a way that an outside management company could not accomplish.

Advantage: Self management.

Designing critical elements of training before you sell franchises is essential if your franchisees are to succeed. Not only will effective training contribute to your brand’s quality and consistency, prospective franchisees are impressed when they see you’ve committed to robust training throughout the organization.

Are you in the process of registered a trade mark? Do you know which trade mark symbol to use at each stage of the process in connection with the trade mark?

Artists, artisans, vendors, crafters, home businesses and small manufacturers often find that selling their wares through traditional channels can be too difficult and too expensive. Selling goods on consignment, whether online or through a bricks-and-mortar storefront, can be a workable alternative that costs very little, and gives them an opportunity to obtain exposure for their work in several locations and sell goods through more than one dealer.

The success of your business is dependent in large part on how well you market it. That is why it is vitally important to develop a solid, workable marketing plan for your business. An overview of your marketing plan should be included in your business plan as well, so potential investors and lenders can review your marketing strategy.

Are you thinking of starting a home business? Do you know whether you can do so legally in the neighborhood you live in? Before you invest a lot of money in inventory, supplies and equipment, make sure that your ability to operate your business will not be impacted by zoning laws, bylaws, or restrictions imposed by the local Home Owners Association. If you live in a condo, or if you rent, there may be further limitations imposed by the condominium association or by your lease.

Power lunches are an important part of most executives' weekly schedule. But if you've never arranged a business lunch before, it can be a little intimidating. Here are some easy tips which will help you plan a successful business lunch, and hopefully pave the way to a successful transaction.

Whether you're hoping to generate extra income in addition to a regular job to help make ends meet, or you want to fulfill some entrepreneurial goals, starting your own home business can help you meet those goals. But home businesses can also offer many challenges. Follow these 18 tips from successful home business owners to help increase your chances of reaching profitability without spending every waking moment and every last dollar to get there.

Many people are choosing to start their own businesses these days. Whether they are people who don't want to spend most of their waking hours commuting to and from work, parents of young children who want a more flexible work environment, or retirees who have decided to get back into the mainstream, there are plenty of opportunities for those folks who are considering starting up a home-based business.

If you've ever thought about starting your own home business, there's no time like the present. But what sort of business should it be? How do you get started? How do you find potential customers? Let's go over the essential steps you should follow in order to answer those questions and help you in your decision-making process.

1. Go with what you know.

Almost everyone has skills, knowledge, experience and assets that could be channeled into a marketable home-based business. For instance, if you own a truck or have access to a trailer, you could start a junk hauling or recycling pick-up service. An accountant with space for an office has all the tools they need for a successful home business. There are many types of businesses that can be run from your home. Just to name a few:

• cleaning services,
• babysitting / day care,
• catering,
• photography and videography services,
• data entry,
• bookkeeping,
• dog walking and pet sitting,
• floral arrangement,
• cake decorating,
• tailoring,
• gardening and landscaping,
• direct mail marketing.

2. Do some market research.

Do you know who your target customers are? How large is the potential market within your geographical area? You will need to answer those questions before you invest a lot of time and money into the venture. Find out how many people in your area would be interested in your proposed product or service. Talk to the people in your neighborhood, take several informal surveys over a period of one to three months to determine what percentage of your area would be willing to pay for your product or service. Make the survey simple - just a few key questions. For example:

1. What is the likelihood that you would have a need for _________________ (your product or service) in the next 12 months?
2. Is this a product / service that you would be willing to pay for?
3. How much would you be willing to pay for this product / service?
4. How often would you have a need for this product / service?
5. Would you be more likely to buy it if this product / service was available in your neighborhood?

3. Prepare a business plan.

A business plan is an essential component of the process. It gives you a means to clarify what your business proposition is and how you plan to grow your business, set out your mission statement and goals, and convince potential lenders and investors why they should have confidence in its potential. It is a vital tool for obtaining financing, especially if you require a start-up loan for equipment and supplies.

Your business plan should include:

• estimated start-up costs,
• an advertising and marketing strategy,
• production costs and procedures,
• sales strategy,
• a summary of your work history, skills, resources and strengths as a manager of your own business,
• a breakdown of how your time will be allocated between the home business and the other demands on your time (regular job, family requirements, etc).

Too often, enthusiastic and ambitious entrepreneurs jump into an extra income project and suddenly find that the costs are too high, and the time requirements more than they can meet. It pays to lay it all out on paper before you get involved. The clearer the vision you have of the project before you start, the better your chances for success.

4. Promote, promote, promote.

• Get the word out wherever and however you can. Look for as many free or low-cost ways to advertise as possible.
• Give out discount cards, BOGOs, first-time customer specials.
• Get your website up and running asap. Ensure that customers can place orders / book appointments / ask for quotes easily and seamlessly.
• Set up a targeted local online ad campaign. If you've never done this before, hire an SEO consultant to help you.
• If you have printed materials such as business cards, flyers, etc., make sure they're professional looking and memorable.

5. Be prepared to tough it out for the first 6 months.

Regardless of what type of business you start, you should have enough capital available to sustain the business through the first six months of operation. Do not count on receiving or spending any business income for yourself or your bills during that start-up phase. All revenues obtained in the first 6 months should be reinvested into the business in order to reach your planned Year 1 projections. After that initial 6-month period you can set up a small monthly salary for yourself.

Don't expect instant success. "If you build it, they will come" only happens in the movies.

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Imagine this scenario: You have been offered a position that is a dream job, right in your chosen field with excellent compensation and benefits, maybe some stock options. You and your future employer have agreed to sign an Employment Agreement as a precondition. Don't panic! Keep calm and read on.

An employment contract is the business equivalent of a prenuptial agreement and just about as uncomfortable to ask for. How will you know what items should be included in the contract, or if some important element is missing? All of this can be very anxiety-making.

Of course the wisest course of action would be to review it with a lawyer. But if you decide to go it alone, here are some basic guidelines as to what you should look for in the agreement.

NEEDS: Provisions That Absolutely Should Be Part of Your Employment Contract

1. Parties. The parties (both employer and employee) must be clearly and correctly identified by name.
2. Nature of the Relationship. Is the relationship between the parties described as being an employment relationship, i.e. that of an employer and employee? If not, you could be designated as an independent contractor and that would make you responsible for paying your own payroll taxes, worker's compensation and other required remittances.
3. Job Description. The agreement should clearly define the position and the duties and responsibilities that you will be expected to take on.
4. Scope of Position. The agreement must set out whether the position is full time or part time, permanent or temporary.
5. Start Date. The start date for the position should be stated and if the employment period is for a fixed period of time, the end date should also be stated.
6. Compensation. The starting salary and all other compensation must be clearly stated: base salary, any commissions, bonuses and other remuneration - how much (fixed amounts or percentages) for each type of compensation, and the pay periods for each.
7. Benefits. What type of benefits will you be eligible for? When do they kick in and what is the accrual? Are the benefits taxable?
8. Time Off. The agreement must be clear on vacation time and holidays. It should address how and when you will be compensated for holidays that you worked and for vacation time that you accrued but did not take.
9. Termination of Employment. What are the provisions for termination? During and after probation, minimum / maximum notice by the employer with and without cause; minimum / maximum notice by employee; what would constitute just cause for dismissal.
10. Offer and Acceptance. Lastly, the agreement must state that the employer offers you employment on those terms, and must include a statement that by signing the agreement, you accept employment on those terms.

WANTS: Additional Provisions That May be Negotiating Points

The list below contains just some of the types of additional provisions that may be included in the Employment Agreement. Some of these may actually be required by law in your area. Check the current labor laws to find out which of these provisions are statutory and would therefore apply to you.

1. Performance standards that the employee must meet.
2. Qualifications required for advancement, bonuses or other extra compensation.
3. The reporting relationship - to whom do you report, and how often or under what circumstances?
4. Limits on the employee's authority (e.g. purchasing, order approvals, etc).
5. Performance reviews - how often are they conducted, what is the procedure?
6. Travel and vehicle allowances, reimbursement for other expenses.
7. Moving expenses if the employee has to relocate for the job.
8. Is there a probation period? If so, how long is it, what are the expectations, and what are the consequences for not meeting expectations?
9. Salary increases - how often, how much, what factors determine the amount?
10. Sick days, personal days, maternity leave, bereavement leave.
11. Provisions for disability or long-term illness.
12. Confidentiality, non-solicitation of customers, suppliers and other staff, non-competition provisions.
13. Ownership of inventions or innovations made by the employee during the employment period.
14. Severance pay.

Keep in mind that while items like the company's stock options plan or medical benefits package should be described in the Employment Agreement, it is unlikely that these issues would be negotiable. Your best advice is to review the Employment Agreement with a lawyer. He/She will be able to tell you if it's in our best interests to sign it as is or if there's anything extra that you should be asking for. You can also have your lawyer negotiate those extras with the employer.

Image by Gerd Altmann from Pixabay