There is no question in anyone’s mind that the commercial world in which we lived prior to the recession is no more.

It will be confined to the history books as we enter the new “enterprise” era.

Coffee-shop entrepreneurs

As a direct result of global distribution channels, there has been a huge shift away from conventional marketing to one of networking and partnering.

Those with half-decent websites can generate sales all around the world from their laptops, while they enjoy their latte and free wifi access.

With the birth of social media a few years ago, there has been an explosion of entrepreneurialism and old rules no longer apply, or are irrelevant.

That’s particularly true now because “Corporates” have lost the power they once had.

Boutique businesses pop up on a daily basis; often creating a brand and starting a “tribe” or following with global reach.

Not all are created over a cup of coffee, but many are launched for less than the price of a tank of petrol.

And now, there has been a revolution in the labour laws to reflect the new reality.

At last, labour laws encourage hiring

We’ve witnessed this trend over the last two years in one of my companies, Capecan Business Centre.

More than 50 businesses have joined us in under 24 months, and more than 80% of them have been new starts and lifestyle companies.

Four out of every 10 of those businesses have been started by people who already have a business. It is those people – a massive 40% – that the new labour laws will be of great benefit.

In most cases, business owners with more than one company run them with either partners or employees, or both.

Until now, taking on an employee was a huge step. Now, however, the new laws put enterprise above old-fashioned notions of job security.

Job security is a thing of the past

With the change in labour laws, those who select employment as opposed to “enterprise” are now choosing a very unsecure option.

TheUKGovernment has recognised that without SMEs (small and medium-size enterprises) there is no vehicle to create employment.

That said, business leaders require more commitment, and higher levels of efficiency because job security no longer exists really.

Under the new laws, those who don’t make the grade could find themselves unemployed a lot quicker – and easier than before.

Flexibility to do business

The new laws give business owners the flexibility to make changes for the betterment of the company without the same level of fear concerning the consequences.

It is hoped that this flexibility will stimulate the employment sector and encourage entrepreneurs to focus on training.

Clearly, I can’t document all 18 pages of labour-law changes in this short article, but your accountant/Gestor should have notified you of these changes within the last six months.

If you haven’t been notified, then contact Capecan Consultants regarding their “SMEs & New Start Business” accountancy services by emailing info@capecan.com

A member of our accounts team will call you to arrange an initial consultation.

The economy may still be on trouble but, in many ways, there has never been a better time to turn a business idea into a reality.”

It is true that the financial crisis has caused businesses to unite and create communities – and for those invited to the private presentations for our next exciting project, the final quarter of the year looks as though it could be exciting.

Financial experts inLondonhave reported that, as of October 2011, the “official recovery” period from the recession has begun.

However, businesses which have stood still and not innovated, or identified the trend changes in the market place, seem to be suffering most.

TheIslandhas flourished, with record tourism figures in 2011 and a whole new stream of flight-paths opening this year.

And exciting new projects being launched by Capecan Group indicate that there could be many innovative changes for the business community to enjoy.

On Wednesday I was invited to speak with Milagros Luis Brito, Vice-President of the Canarian Government’s ZEC department, to discuss the inward investment strategy between Capecan Group and the Government.

We will implement it through our international partners in 2013, and attracting more companies brings with it investment and career opportunities for residents and our youth.

Those of you on holiday may be unaware that the Canaries isEurope’s leading corporation tax zone, with profits taxed at just 4%.

And, unlike other “tax havens”, we are proud to say we are NOT ONE! That’s because dividends can be repatriated to other European countries, free from double taxation – if the bi-lateral agreement has been signed withSpain, which applies to nearly all European countries.

However, aside for our international activities, the Capecan Group are still dedicated to assisting small businesses and entrepreneurs here in theCanary Islands.

On 20^th September, the Capecan Business Centre and BP Tenerife-sponsored The Business Lounge will be held at Bianco’s Lounge, in the Pasarela Centre, Los Cristianos.

The Business Lounge has grown from strength to strength since its formation last year, providing people from all types of businesses an opportunity to enjoy a social drink together in a relaxed atmosphere, with like-minded people.

There is a strict no-marketing policy, which ensures that you can relax and enjoy chatting with new contacts.

Many of our regulars enjoy the partnership and collaboration opportunities this creates, and we hope that this gathering will be as successful as all the previous ones.

Then, on 27^th September, Capecan are launching their new Centre Of Excellence, based at Winter Gardens onGolfDelSur.

This will become an incubator centre, which will assist and support entrepreneurs and new-start businesses to grow from 0-100,000 euros pro-rata turn-over in just 40 weeks.

Capecan are providing professional business addresses, personalised secretarial services, business mentoring and coaching workshops, delivered by successful entrepreneurs and business owners.

The company will even supply a great business-launch marketing service to ensure maximum visibility and maximum impact for new businesses.

There will be an open-day opportunity for people to visit the new centre, which is already 100% operational, and see just exactly how the innovative services can drive small businesses forward.

The cost of starting a business and employing people meant that if you didn’t have masses of funds, you ultimately became a worker and was paid just enough to survive.

Today the cost of owning your own factory is less than a couple of grand, yet we have some of the highest unemployment rates in history!

We’re at a time in which we are seeing massive shifts in trends: job security doesn’t exist any more; and big companies can’t compete with smaller ones as the birth of Social Media has given power to the little person.

And tools like Youtube, Facebook, Twitter and LinkedIn have given entrepreneurs the opportunity to “interact” with their audience.

I’ve seen many cases of people creating Youtube videos to market a product and, within days, have had more than one million views, have been offered investment by venture capitalists and have created an international brand.

A great example of this is Dollar Shave club. Watch this link because it’s guaranteed to make you smile: http://bit.ly/P78Atd

This week I was speaking with my good friend Daniel Priestley, founder of Triumphant Events, and author of How to Become a Key Person of Influence.

As owner of a Serviced Office business centre, Capecan Business Centres, and being a specialist in inward investment and new-start companies, all too often I see small and new businesses making horrific mistakes when it comes to running a business.

Poor sales are the main reason why businesses don’t survive, says Daniel. It’s simple – people have to remember that to build a valuable brand, they need to follow the following points:

1) Pitch

2) Profile

3) Product

4) Publish

5) Partnership

Pitch: Creating that perfect pitch, which tells the world what you are up to and why you are special, will enable you to be recommended more easily. You will find that a strong pitch will start to attract positive attention, clients and opportunities.

Profile: We live in a world where “marketing budgets” need to become “remarkable budgets”. When you see an advert which makes you aware of your needs or desires, most people then go straight to the internet and search, via Google, for the most remarkable product or service to buy.

Product: You obviously have your core product or service, but in every business it’s the SECOND product that will make you the most money. Every business needs a product for its prospects.

If clients can’t afford your core product, then create one they can afford until they become big enough to buy your core product.

You’ll find that core product and second product will increase your revenue beyond what you believe is possible.

Publish: The best business card you can every give to someone is your book! All the experts have a book, so what are you an expert in? And what value can you put in a book that will help other people? If you want to become an “Authority” in your specialised area you first need to become an “Author”.

Partnerships: Follow the first four steps and you’ll be turning away more partnerships than you’re taking on. You will be able to cherry-pick the best opportunities, and spend time with interesting, exciting other “KPIs”.

Capecan Business Centre will be holding workshops and coaching sessions with Daniel and the KPI programme experts.

If you’re a small business owner, or you have a business idea and want to start a company but are unsure of the procedure, contact chris@capecan.com and we’ll give you information about our book and DVD, and show you how to enrol on the course.

AFTER Tenerife and the Canaries as a whole enjoyed a record year for in 2011, I visited Jorge Marichal, President of Ashotels, to find out just why we enjoyed this success.

I also wanted to know what we can all do to ensure that the Tourism industry in the Canaries continues to flourish!

Firstly, Jorge explained exactly what Ashotels is. “It is an association of hotels consisting of 219 members, covering the four islands of theProvince of Santa Cruz,” he told me.

“This association is responsible for in excess of 150,000 beds catering for visitors to the islands on a daily basis, but also responsible for supporting hotel owners and their employees.”

Mr Marichal is the perfect person for this position. He has come from a development background, working for his father in construction and learning all about the business.

Later, he also gained extensive knowledge of the hospitality and tourism businesses as CEO of Marylanza Hotel, in Los Cristianos.

I asked Jorge what were, in his opinion, the main reasons for the success of the Canaries in 2011.

“We have worked diligently over many years to make this achievement possible” he said. “However, we must review this honestly and accurately.

“In 2010 and 2011 there were issues in theMiddle East, which meant more visitors looked closer to home for their family holidays and winter breaks.

“What this has demonstrated to us is that we have to keep the warmth and generosity for which the Canarian people are renowned.

“We mustn’t lose the Canarian Smile, and we have to work harder to ensure that we create experiences for our visitors, which makes them feel at home. This will be one of the fundamental reasons why visitors continue to visit us.”

Jorge went on to describe his background. “When I was growing up, the construction industry here inSpainand the Canaries was booming,” he said.

“My parents, like my friends, were told to get an education, learn many skills and understand the industries that brought financial prosperity to the islands,.

“However, many of my friends were tempted to leave their educations and work on the building sites, where they could earn far more money.

“But when the construction industry failed in 2007, there were many casualties; many lost their jobs, lost their homes, because we took for granted how easy it was to obtain wealth at that time.

“We have to go back to basics; we have to educate our youth while creating opportunities for them in the future.”

When asked about the many advantages of living and working on the islands, Jorge said: “While fantastic incentives such as the ZEC 4% corporation tax, and VAT on the islands being at JUST 7% as opposed to 20%-plus in Europe, tourism will still be the driving force behind the economy in the Canaries.

“I do think that we are becoming the research-and-development zone for innovative technologies, in particular Green and ECO projects.

“With continued investment into our communications infrastructure and travel connections, it is easy to see why we are emerging as an investment hotspot.

“But we mustn’t lose sight of our roots. We must ensure that we create memorable experiences, which is the main reason why people visit the Canaries.”

I asked Jorge about the criticism levelled at all-inclusive resorts, to which he replied: “All-inclusive is a desirable product for many tourists.

“Put simply, if we didn’t offer it, we would lose those tourists to destinations which do want this product. We believe that the proportion of all-inclusive hotels is well within balance.

“I would like to see more synergies between business owners and all-inclusive hotel owners to encourage tourists to leave the resort – to experience the surrounding areas.

“We are more than happy to promote quality experiences outside of the hotels – if approached!”

I always put this same question to all the people I speak with: “If you could wave a magic wand and fast-forward five years, what would your vision of the Canaries look like?”

Jorge raised the famous “Canarian Smile” and said: “I see opportunities – huge opportunities. I would like to see an abundance of career and job opportunities, and an end to the class system, so that everyone can enjoy the same standard of living as you and I do, Christopher.

“We should be the breeding ground for entrepreneurial innovations, the leading touristic destinationEurope, if not the World.”

It is evident that tourism and the islands are close to Jorge’s heart and he, in my opinion, is the perfect person to spearhead the success.

“He’s young dynamic, intelligent and very open to synergies that create mutual opportunities between business owners and hoteliers.

If you would like to put ideas forward to be heard by the President of Ashotels, then please contact me by email at christopher.pennington@canarianweekly.com and I will have them answered by Jorge Marichal at our next sit-down.

In a class where some wrote down their goals and others didn’t, those who did earned far more, made much more of their lives and were more successful; or so the story goes.

Intrigued by this, an investigative reporter decided to check the facts himself and see how they were now getting on.

The trouble was that his investigation uncovered an interesting fact: the study never happened!

There is no record of it. There is no one who remembers it happening, and there’s no evidence of anyone ever taking part.

Confused, the reporter went to the speaker he’d heard talk about it. Brian Tracy was surprised at the question; after all, everyone’s heard of this study haven’t they?

“I heard it from Zig Ziglar,” was his response. Following the trail, the reporter called up Ziglar, who said: “I heard Tony Robbins talk about it.”

“Unwilling to give up, he tracked down Robbins, asked him the same question and was told: “Everyone knows about this study, but I’m sure I heard about it from Brian Tracy.”

The loop complete, the intrepid reporter went back to Brian Tracy and told him what he’d discovered. Brian’s response wasn’t what he’d expected: “Well, if it isn’t true, then it should be,” he replied.

What a terrific answer. Who cares if there was a study or not when it has probably been responsible for helping millions of people achieve more? In cases like this, the “story” is far more valuable than the “truth”.

The same is true when it comes to selling the Canary Islands as the “Hawaii of Europe”. The truth is less important than the benefits that a new “story” might bring.

Contrast the way the genuineHawaiian Islandssell themselves, compared with the Canaries.

Tourism: What the Hawaiian Islands have in common with the Canaries

• Part of a volcanic archipelago
• Similar topography
• Wide selection of accommodation, including top-class hotels and conference facilities
• Similar flight times from mainland airports
• Similar range of marine activities

What they don’t have in common

• Hawaiiis perceived as a higher-class venue
• Hawaiiis perceived as having an attractive and interesting culture
• Hawaiiachieves higher tourism spends
• Hawaiiattracts more short-stay visitors
• Hawaiimakes much of its cultural heritage and translates this into touristic activities
• Hawaiigenerates significant tourist numbers from corporate travel
• Hawaiigenerates significant tourist numbers from incentive travel

Arrive in Hawaii and you are likely to be greeted with a filled pineapple or coconut and a leis put around your neck.

Distinctive music lets you know you are somewhere special, and few tourists leave without attending a “lighting of the torches” at the beach as the sun goes down, followed by a Hawaiian feast and hula dancers.

Without the distinctive and attractive culture, the Hawaiian Islands would just be another tourist resort, with sunshine and hotels.

It’s not enough to have nice beaches, boat trips, sunshine and a volcano to climb. Something has to bind it all together, and that “something” is a distinctive and attractive culture.

If it doesn’t already exist, then make it up. If the real culture isn’t so attractive, then change it so that it is.

If there isn’t a tradition which translates easily into an attractive tourist activity, then fabricate one. Even if it’s not true; it should be!

In the big scheme of things, what matters is employment, education and social development – all of which come more readily from a thriving economy.

In an economy as reliant on tourism as the Canary Islands, this is essential. The comparison of missed opportunities, as demonstrated by the success ofHawaii, means that “truth” must take second place to a good story.

Now, all we need to do is take what we’ve got, make it better, make it more attractive and, if all else fails, make it up … until the Canaries become the new Hawaii of Europe!

CAPECAN are holding their next “Business Lounge” networking event on Friday the 6th of July between 13:00-17:00 at the Bianco’s Wine Bar in the Passarella Comercial centre Los Cristianos. Martin Goodyer, one of Europe’s top business coaches will be the guest speaker. He is looking to work with 3 companies based in Tenerife that want to turn their business from a Ford into a Ferrari and increase their turnover by a minimum €100,000. There will be other business owners from the south of Tenerife present so bring your business cards as this a fantastic way that you can build your contact base in a relaxed social environment. Entrance to the business meeting is free if you have any questions then call (0034) 922 738 933.

www.martingoodyer.com

And Vicente Dorta Antequera spelled out exactly what’s in store for the Canaries, with international interest and investment coming from both East and West.

Vicente has led the reformation of the Camera (Chamber), cementing relationships locally with businesses and organisations to cut through the archaic system and red tape.

He told me: “Witnessing the disappearance of 14% of the 65,000 registered businesses inTenerifehas led us to change our focus, and the main success of the Camera now is the level of support and education we give to new and small businesses.

“We’ve created a ‘one-stop shop’, enabling new businesses and enterprises to enter the market quickly and cost-effectively.”

This is opposed to the old system, which could take weeks to register a company.

When asked what changes he would like to see in the short term, Vicente said: “It is vital to see a restructuring of the financial system, to create equal opportunity for people wanting to start businesses in the Canaries.

“We have many advantages to doing business here, and it is our responsibility to create opportunities for people to assist us with the economic and social diversity of theIslandsby creating a ‘hub’, where businesses outside of Tourism can flourish.

“By supporting new businesses with better connections to groups, organisations and associations, young enterprises stand a better chance of success.

“That is why we have taken the decision to incorporate the Chamber and open up membership to every business owner in the Canaries, free of charge.”

Companies and organisations like Capecan, Proexca and the ZEC have in their hands a real opportunity to capitalise on our stable foundation by increasing the amount of international businesses coming to the Canaries.

Vicente encouraged initiatives like this, and he highlighted the main advantages to future local businesses, increased employment opportunities, development of commercial skills, open access to international markets, Joint Venture opportunities and the internationalisation of Canarian businesses.

When asked why international companies should come to the Canaries, Vicente insisted: “NEVER has there been a better time to trade from the Canaries.

He pointed out:

*Arguably, we have the most advantageous platform inEurope

*Ourlocation is perfect

*We enjoy a first-class health and education system

*Ourclimate is envied

*Tenerife South Airport has more direct international flight connections with Europe thanMadridAirport. This helps to captivate business owners, allowing them to enjoy an opulent lifestyle and low-cost of living.

Vicente added: “If you combine all this with tax incentives such as 7% VAT and corporation tax at just 4%, it is easy to see why the Canaries is attracting SMEs and Corporates from Europe and America.”

Capecan Business Centre is living proof of this trend, with more than 60% of its occupants being international businesses.

This creates more opportunities for local business by belonging to the same business community, as well as more jobs for local residents of the Canaries.

All achievements start with a vision. So when I asked the Camera Director if he could wave a magic wand and fast-forward five years to what life would be like in the Canaries, I wasn’t astonished by the determination and conviction of his answer.

“The Canaries WILL be the logistical stronghold for all trade between Europe America andAfrica,” he stressed. “Our goal is to put an end to the present high unemployment rates.

“Together, we will change the production model, improve education, strengthen our economic structure, build firm foundations for trade in Africa and innovate and create more opportunities in the Canaries like the Factory of Innovation, which will be opened by the end of the year in Adeje.

“We have an abundance of reasons why companies should come to the Canaries, and, by working together, we will raise our profile.”

If you would like us to show you how to lower your corporation tax to just 4%, or open commercial links withWest Africa, please contact Christopher Pennington at christopher.pennington@canarianweekly.com

What you might be unaware of, particularly if you are a business owner elsewhere in Europe, is that you are in the European special zone, where the VAT (IGIC) is 5% only, and corporation tax just 4%.

Capecan Consultants are the only English-speaking business consultancy appointed by the Canarian Government departments and agencies to promote, consult and carry out the inward investment process to the standards set by the EU.

Find out if you can benefit from these unique, fiscal benefits with one simple consultation with Capecan. We have already assisted many European companies to slightly re-structure their businesses to establish a working base here in these wonderful surroundings.

Our clients have discovered that they can invoice their international clients from the Canaries without the need to charge VAT, enhancing their cash-flow hugely.

Combine this with the 4% corporation tax and the fact that Spain’s Tax treaties, signed with many EU, states that Canarian businesses can send the dividends to their mother companies free from withholding tax, and free from double taxation which is authorised at EU level!

It is vital to state that the Canaries are NOT a tax haven, which is a huge benefit as there is no need to hide funds. You have the flexibility to move funds throughout Europe without double taxation being enforced. That’s because you have already paid tax in an EU country.

We have a truly impressive list of companies whom we have already assisted, which is available upon request.

So if you would like to discover how we can assist your company to become more profitable, while protecting the wealth for the directors and enhancing the working environment and lifestyle of your employees, why not drop us an email, or call us to arrange a meeting or video conference?

Telephone 0034 922 738 933, email info@capecan.com or check us out at www.capecanconsultants.com