Archive for February, 2009

For our next meeting, March 6, we will be relocating to the room behind the bar, vis-a-vis the entrance to the Hamptons restaurant.

The management of the hotel has advised us that we cannot continue using the larger conference room without paying $100 extra.

We will therefore try to see how the new room is going to work for us, because it has a different layout of tables – they are organized as individual tables which seat four people. The room capacity is about 30-35 which should be fine for our present needs.

Economic forecasting seems to be getting more and more difficult. Who would have thought a year ago that interest rates would fall to the current level? We had an increase in fixed rates that started in 2007 and pretty much continued to December 2008. During this time many buyers thinking this was the trend decided to lock into fixed rates. Home buyers locked in their mortgage at the 5 year fixed rate which was around 5.75%. Today we can get a 5 year rate as low as 4.29%. If you have a fixed rate mortgage it makes sense to re-evaluate whether it would be worthwhile to switch to a lower interest rate mortgage.

Breaking your mortgage will result in a prepayment penalty payable to your current lender. The question is whether the savings from the lower interest rate is enough to cover the penalties and any closing costs on the new mortgage. Each situation would have to be addressed on an individual basis. I have run into several cases where there has been significant benefits to switching to a lower rate.

Here is one such scenario:

• Mortgage amount – $188,393
• Term – 5 yr term with 2 yrs remaining on mortgage, – 22 year amortization
• Interest rate at 5.75% – interest payable over next two years – $20,923
• Interest rate of 4.29% – interest payable over next two years – $15,587
• Difference equals $5336
• Prepayment penalty of $1,865 – 3 months interest penalty

Difference in monthly payment: $153.95
The other huge benefit is that you are now in a 5 year mortgage at a rate of 4.29%, imagine the additional savings you will receive from the remaining 3 years.
What if you are only 1 year into a 5 year term, most lenders would charge you interest rate differential!

• Mortgage Amount – $230,615
• 1 year into a 5 year term
• Interest rate at 5.75%
• New interest rate 4.29%
• Remaining interest on current mortgage $50,250
• Interest on new mortgage $37,274
• Penalty would be Interest rate differential =

Difference in monthly payment: $189.85

The borrower had 2 options in this case – switch to a 4 yr term mortgage at 4.39% or get a variable rate at 3.8%. Here is the total interest he would pay over the remaining 4 years of his mortgage based on these terms:

• 4 yr term – $59,263
• Variable rate mortgage – $50,037
• Stay at the current mortgage for the next 4 years – $75,500

The client saves $25,463 (or $75,500 less $50,037) by switching to a variable rate mortgage. The net savings is $15,463 (or $25,463 less $10,000 penalty).

In one of our recent meetings, as a Marketing Minute, I had highlighted to you a book called “The 29% Solution” by Ivan R. Misner.  This book focuses on giving you 52 weekly networking success strategies, one for each week of the year.

Since we are in Week 6 of 2009, I thought you might find it useful for a summary of the first 6 weekly tips for successful networking strategies.

Tip 1)  Set Networking goals – make sure they are SMART – i.e. Specific, Measurable, Attainable, Realistic and Time-Specific. Answering questions such as “How many networking functions will you attend each month?” or “Whom do you want to meet through networking this year?” may be starting points for you.

Tip 2) Block Out Time To Network – just as you set budgets aside for advertising or public relations or client follow-up, do the same for networking.  You are part of at least one networking group – know that it is one of your business development strategies and set time aside for this consciously.

Tip 3) Profile Your Preferred Client – Imagine what your business would be like if your contacts list was filled with only the people you most liked to work with?  Getting clear on who that is EXACTLY will help you attract them to your business.

Tip 4) Recruit Your Word of Mouth Marketing Team – Based on your preferred client exercise (Tip 3), get really clear on who else serves a similar market.  i.e. as an entrepreneurial business coach, my word of mouth marketing team consists of people who also serve small businesses such as lawyers, accountants, bookkeepers, photographers, web designers, graphic designers etc.  Who’s on your team?

Tip 5) Give to Others First – BY FAR, this is about creating good karma!  This is truly the power and potential of networking at its best.  Each time, think about how you can serve/give rather than what you can get.  What goes around comes around…

Tip 6) Create a Network Relationship Database – this is more than just keeping contact information.  It’s about recording every referral, how it was developed, did it lead to further business etc….the entire record.  Cheryl Scoffield specializes in this – call her for help here if you need it.

Great book – good reminders, good tips and good insight.  Click here to buy a copy through Amazon or visit my website for a more detailed book review at www.enspirecoaching.com/enspiration/enspiration.html.

Happy Networking!

Grace, Founder, enSpire Coaching Inc.

Interested in blogging for business? Growing your email marketing list? Join me, Boris Mahovac, email marketing consultant, as I interview a couple of world-class experts on the subject!

Blogging for Business – a candid interview with the BlogSquad!

Blogging for your business is not an option anymore, but does it work better that email marketing?

The real questions actually is: How do you make these two marketing strategies work together to create a powerful tool to boost your small business or professional practice?

Our Patent Lawyer Camilla Nielsen has a remarkable story to share. Make sure you read about how OakvilleNetworking’s blog made a difference in her business!

I’ll be asking Patsi Krakoff and Denise Wakeman some tough questions on how to use business blogging to build credibility and visibility on the Internet, and how to generate leads and prospects.

This is a FREE educational event, but you need to register.

Register for the tele-seminar today even if you can’t attend the live call, because a recording will be available after the call.

When: Wednesday, Feb 11, at 3 pm ET
Where: the comfort of your home or office – via tele-conference
Why: to learn about the power of blogs from the experts!

Hi everyone

I am so so grateful for the overwhelming generosity of this group.  Wow – talk about a group with a GIVERS philosophy.  Thank you to all of you who have agreed to make a donation for the silent auction of the Oakville Children’s Choir Gala, which is on Thursday Feb 12th.

Please remember to bring your donation, gift certificate, promotional material etc. to the meeting this Friday.  Unfortunately, I will not be there as I am in Toronto attending a two day workshop called “The Bigger Game” – www.thebiggergame.com.  Boris has kindly offered to help me collect donations and I will pick it up from him over the weekend.  If by any chance, you are not able to make the meeting on Friday also, just drop me a quick line at 416 909 7251 and I’ll find a way to pick it up from you.

Thank you all again so much.  On behalf of the choir and personally, this means a lot.

With appreciation, Grace

p.s. if you feel like coming to a fun dance, there are still tickets for the event – see here.  I’ll be on the dance floor….

Effective January 29, 2009, any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief thanks to the new Home Renovation Tax Credit proposed in Harper Government’s Economic Action Plan.

“Every time Canadians invest in home renovations, they are helping to create construction and building-supplies jobs in their own communities,” said the Prime Minister. “By providing an incentive for Canadians to invest in their homes, we are also encouraging them to invest in local jobs.”To highlight the kind of projects that will be eligible under this plan, the Prime Minister visited an Ottawa-area home renovation site and met with a local contractor who will be better able to protect and create jobs thanks to the additional home renovation projects that will be encouraged through this tax credit.

The Home renovation Tax Credit will provide a one-year, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired between January 27, 2009 and February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000 but no more than $10,000.

The Home Renovation Tax Credit is one of several initiatives to help homeowners and homebuyers that is contained within the Harper Government’s Economic Action Plan. Before homeowners, homebuyers, and local construction and building supply workers can benefit from these new initiatives, Parliament must pass the 2009-2010 Federal Budget. (Source: Office of the Prime Minister – pm.gc.ca)