Belcanto Business Studio

Archive for the ‘Financial Planning’ Category

Estimate

Once the audit is completed and the charging, since the T1 and T2 data are available by census, no weighting is necessary. Estimation methods are used to calculate the values ​​of each financial variable for each combination of industry, region and income bracket. It eliminates the estimates is considered to be of unacceptable quality or which do not respect the rules of confidentiality.

We calculate median values ​​and quartiles for each type of businesses by industry and region. The businesses are ranked from lowest to highest value of operating revenue. The median is the value of total receipts of records that is exactly half (0.50). The quartiles are the values ​​of total revenue records that are in points 0.25, 0.50 and 0.75. Lastly, we calculate averages for the variables in the income statement, balance sheet and others by referring only to firms in each quartile or half.

Quality Assessment

An analysis of historical trends was conducted at aggregate levels of industrial activity and geography to identify potential problems. Due to changes in definitions and methods over the years, only the extreme values ​​or trends have been the subject of a detailed audit. Totals and related ratios have been checked to ensure internal consistency.

Disclosure Control

The Act prohibits Statistics Canada from releasing any data which would divulge information obtained under the Statistics Act that relates to any person, business or organization without such person, company or organization’s knowledge or consents in writing. Various confidentiality rules are applied to all data released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Data suppressed due to confidentiality will be represented by a lowercase x in the cell of a profile, like the values ​​of slot revenues.

What is the value of your business?

Before you sell or leave your company, you will first need to assess your revenue, your assets, your assets, etc.. As well as other factors such as future profit potential, competition, intellectual property and customers. Buyers want to know the numbers and history of your company. A business valuation can help you determine the value of your business.

Do you know how much your company?
Learn how to determine the value of your business and find ways to improve it.
Canadian Institute of Chartered Business Valuator
Get help from an expert who can quantify the value of all or part of your company or its securities.
What are the financial, tax and legal transfer of your business?

The transfer or sale of a business results in many financial implications, legal and tax matters. Each business and each owner is in a unique situation. Therefore the use of a tax could help you answer the following questions:

Do you need to borrow to fund your transaction?
What are the factors to be considered as if it is a sole proprietorship, a partnership or a corporation?
Are you eligible for a deduction for capital gains?
How to reduce the amount of your taxes?
Can you take advantage of an estate freeze (freezing the value of shares you own and issue ordinary shares to adult children who continue operating the business)?

Why use professional services?

The use of professional services is the key to the success of small businesses, including when they transfer to another owner. Professionals provide knowledge and expertise in areas you may be less familiar. They can also supplement your management team to ensure the smooth running of your business.

As an entrepreneur, you may benefit from the services offered by the following professionals:

• Accountant
• lawyer
• Financial Planner
• Insurance Broker

Take time to choose the professionals with whom you do business. Find someone with whom you can establish a good working relationship. At the time of initial meetings, be prepared to explain your situation and needs. Ask what services are offered by the company and how it can be helpful. Remember to inform you about the rates the company.

What are the options available to you?

Here are some options to consider when planning:

Transfer to a family member
Determine the candidate, discuss the plan with them and arrange for the transfer or sale.
Sale to a partner at the management team or employees
Sell ​​the company to current employees who know the business and wish to continue the operation.
Sale to a third person
Find a buyer and close the sale.
Succession planning now
Be aware of options available to you when it’s time to sell your company to someone else.
How to sell your business to your managers
Learn more about the buyout by management. It enables a management team pooling resources to buy part or all of the company she directs.
Selling a Business: Questions and Answers
When you sell your business or even a part of your company, the Canada Revenue Agency can answer questions on topics such as the business number, payroll and GST / HST.

Why plan for succession of a business?

A good succession plan will help you successfully transfer your business and allow you to keep good relations with your employees and partners. Succession planning helps:

to protect the heritage of your company;
to ensure continuity of service in your community;
to add value to your company;
to ensure the financial security of your family and your partner;
to cover all contingencies (illness, accident, death);
prepare for the future.
Succession: the key to success
Turn the risks and challenges related to pension opportunities for you and your employees, and for the economy as a whole.
Business Transfer: An Entrepreneur’s Guide
Whether the transfer of ownership or sale of your business, you will have decisions to make, arrange the transition today.

Succession Planning

Find the right strategy to transfer or sell your company to someone else, whether employees, family members, friends or a contractor.

What is the planning?

The succession planning is to find the right strategy to transfer or sell your company to someone else, whether employees, family members, friends or a contractor, and be prepared to everything that such transfer entails.

Options for Emerging

It is important to seek an exit strategy that fits your personal goals and operational.

Succession planning now
Be aware of options available to you when it’s time to sell your company to someone else.
What will the future of your business?
Take a step by step guide to help you fully understand the difficult process of succession planning for your business, including setting goals, developing strategy and the phase of implementation.
Advice on succession planning

Succession planning takes time because of the many complex issues associated with them, as the value of the company, the tax implications, issues such as family and coaching successors. Prepare in advance to make better business decisions.

Guide to Succession Planning
Discover things you should consider and the decisions you must take to succeed is perfect for your business.
Opportunity Grant
Aims: Alberta
If you are a farmer in Alberta, you may be eligible for funding to hire a professional to help you improve your business so it can respond to changing consumer demand.
How much is your company? Guide to Business Valuation
Before soliciting investors or prospective buyers, you should assess the value of your business. Learn about the various methods of valuing a business.

Estate Planning
Prepare a financial plan and determine the tax implications of transferring your business.
Emergency Planning
Have an emergency plan that provides the financial resources necessary for the survival of your company in case of illness, accident or death.
Company structure and transfer methods
Evaluate options available to you as owner, sole proprietor or partner of a business.
Decide if you want to transfer or sell the business to your successor.
Business Assessment
Determine the fair market value of your business.
Exit Strategy
Establish a timetable for a smooth transition.
Implementation and Monitoring
Update the plan regularly.

When should you start and how?

If you plan to retire or leave your company, it is best to start planning early because the process can take up to five years.

A succession plan can help you make important decisions regarding the transfer of ownership, in order to maximize the value of your business and tax benefits. Your plan should address the points listed below.

Goals and Objectives
Provide a vision for the company.
Establish what are your goals after you retire or leave your firm.
Decision Making
If the situation permits, to help members of your family to plan development.
Have a mechanism for conflict resolution, ie a plan to resolve any conflict between family members, partners and employees.
Choose your successor.
Training
Identify key skills that will need your successor.
Provide training or new owners.

5. Avoid loans: When you borrow, you’re saying goodbye to future earnings, if you ask 250 euros to a 12% interest and repay in 36 months, actually you are giving to the lending 9.44 pounds of your monthly income for three years, equivalent to 90 pounds of interest.

6. And if you have no choice but to ask for a loan, do not fall into the trap of minimum payment, which pays no interest that money back soon. Why should interest you if you can get gold at the cost of debt? So there is nothing better for them than a customer who chooses the minimum payment the longer term. Thus, most of the money they give back is interest and not the debt itself.

Read the rest of this entry »

What you’re passionate about
Think about what you’re passionate about, something that you really like to do, something you would do if you had all the money in the world or no one would even pay you for it, and then think of a business where you do exactly what you love , or related to it.

For example, if you love pets, your business idea could be a doggie daycare, a pet spa, a pet accessories shop, etc. Or, for example, if you love cars, your business idea could be a garage, a car parts store, a business dedicated to buying and selling cars, etc.

Read the rest of this entry »