Tip of the week

October 2019

What Does it Mean When We Say “On Paper?”

October  8/19

I hear the following sentence “That is what I make on paper, I actually do better than that.” The way I understand this sentence is that the person makes money, but does not report all of that money, so it is not on paper. I also hear that the rules “on paper” are different than the rules in real life. I of course find this very interesting because a lot of my life involves complying with rules that are written on paper. We are required to follow the Income tax act which is written on lots of paper and I teach governance.

One problem with having more income in real life than you do on paper is that you can’t get a loan based on income that you do not report. You will not be able to sell your business for what it is worth if you don’t report all of your income. 

What Problem Do You Solve for Your Client or Customer?

October 1/19

 Many of us make our living by selling our time. In order to sell our time we have to be offering something that people want to buy.  A first step is to figure out what problem we solve for our clients. Once we know what problem we solve, we can figure out if there is any other way that a client could solve that problem. If there is, then we have to figure out why the client would choose us? What do we add to solving the problem that would make it worthwhile for the client to choose us?

I do tax returns. So it looks like the problem I would solve for a client would be to do their tax return. However,  a person can do their own tax return with software or manually. I don’t solve the problem of filing the return, but I do solve the problem of filing the tax return correctly. So I would focus on the skills and experience that our office has, when marketing tax returns to customers, not just the fact that I can do a tax return. 

This applies to your business too. What problem do you solve for your customer and how can you focus your marketing on that?