Showing posts with label incorporations. Show all posts
Showing posts with label incorporations. Show all posts

Friday, October 2, 2009

Credit Now Available From The Federal Government

A person needs oxygen to survive. A business needs credit. Even in the most difficult of times, the flow of oxygen remains uninterrupted. Not so, however, with credit.

Many a business has seen its line of credit be reduced or cancelled over the course of the last year. Financial institutions, seeking to reduce risks on unsecured or unstable credit lines, have made obtaining funds ever more difficult. This move has dealt a crippling or death blow to many small businesses in Canada.
Under Canada's recent Economic Action Plan, designed to stimulate and strengthen the Canadian economy, the Federal government is sponsoring a program that will work with financial institutions in the private sector. The Business Credit Availability Program (BCAP) will provide loans and other forms of credit support to creditworthy businesses. At least $5 billion has been allocated in loans and other forms of credit support for business enterprises with viable business models but, for various reasons, have limited or no accessibility to financing.

The BCAP is a joint venture between two financial Crown corporations and private Canadian financial institutions. The steering committee is comprised of senior representatives of all sponsoring parties whose experience and commitment have establishes a program with initial promising results. Similar to credit issues, discussions are also being conducted to examine ways of providing accounts receivable insurance.

Business owners and entrepreneurs seeking assistance through this program to support their established operations and preserve jobs should contact their financial institutions to discuss their needs and eligibility. Your financial representative can advise you which program is best suited for your particular situation.
 
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Thursday, October 1, 2009

Is Canadian Employment on the Rise?

Statistics are like a cat. Rub its fur one way and it purrs; rub the other way and the results are somewhat less positive.

So it is with employment figures released by Statistics Canada for the month of August 2009. Stephen Harper's Conservative government is giving a positive spin to the 27,100 net jobs gain for the month. The announcement triggered an eight-tenth of a cent rise in the Canadian dollar, although higher crude oil prices may also have influenced the dollar's rise. Some leading economists have announced that this is an indication of the end of the recession. All this sounds rather encouraging.

Critics, though, are quick to note that many Canadians are not feeling quite as positive. Most of the new jobs were part-time only. The number of unemployed rose in August by 21,900, bringing the total number of unemployed Canadians to 486,000 since the global financial crunch of October 2008. The decline in the manufacturing sector has continued, although construction has begun to stabilize. Most of the new part-time jobs were in the lower paying service sector. Higher paying, high productivity work fell by 17,300 positions. Full-time work continues to be in a decline.

Certainly, there is cause to be optimistic. As one economist stated, half a job is better than no job. Economic indicators seem to point in a positive direction. But, one month of net growth may be far too early to establish a positive trend. Canada may well be on its way to economic recovery. Nearly half a million unemployed Canadians certainly hope so.

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Wednesday, July 8, 2009

Bank on Opportunities from Big Firms

Advice for small companies from a highly successful entrepreneur who started from scratch

Jim Estill started EMJ Data Systems 30 years ago from the trunk of his car. After several other ventures EMJ reached the $350 million figure in sales and sold it 5 years ago to his current company, SYNNEX, which has earned $2 billion in revenue.

His myriad experience with businesses of different sizes informs his opinion that big companies' reactions to the recession can open up some possibilities for your small business. Here are some of these ideas:

Find a Newly Empty Niche

When big companies want to cut down on costs, they might decide to leave a type of business with a high cost structure that they believe can't earn enough in the current economy. But if you have low overhead, that type of business could work well for your small business.

But how do you find such a niche? Find the former customers and recently unemployed staff of a company who has done this. The customers might likely need a new supplier and the staff needs jobs. Or you could go to the larger company itself and they might want to give you a good deal on the sale of their related assets because they want to quit that line of business so badly.

Provide Outsourcing

As larger companies cut down on their in-house staff, they will realize they still need essential things done so they will hire an outside company to do those same jobs (like accounting, janitorial, etc).

Sometimes when managers are asked to downsize they will cut down on other parts of the budget and continue to spend on those areas needed. Might not be such a smart idea but they do it and it's something you can profit from.

Get the Best Minds on Your Side

It is now far easier than it was to hire the most qualified people. As those top people get laid off from bigger companies they would be willing to take a cut in their usual pay as well as do part-time and/or consulting work for a smaller company like you.

Undercut Them

Now many companies will want a lower-end alternative to supply their business services that they normally would pay more for. This could get you more accounts as the bigger companies try to cut costs.

Take Risks

There are some markets that the big companies would normally enter were we not in this recession but they are not willing to take the necessary risk to make any big or sudden changes in direction right now. You, as a smaller company can afford more risk when there is a lot less competition in new areas.

Make Deals

Since we are in a credit crunch, so to speak, many businesses are in need of cash but now you can barter for things that you would otherwise have to buy.

Now, if companies have surpluses you can take off their hands you can make a deal with them to get it cheaper or trade it for something you have that they want.

Jim Estill is CEO of SYNNEX Canada Ltd., a computer-equipment wholesaler based in Guelph, Ont. His popular CEO Blog: Time Leadership is at www.jimestill.com.


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Thursday, July 2, 2009

Why should I incorporate my business in Canada? - Part I

You're a Sole Proprietor

You're a small business owner, or thinking of starting a small business. As a sole proprietor, you make all the decisions and earn all the profits, but you also bear all the risks and obligations. Start-up is easy and inexpensive, and dissolving the business would be too, should the need arise. But the big disadvantage of continuing this way is unlimited liability. As the owner, you are liable to the full extent of your personal assets for any liabilities, debts and losses that your business incurs.

Register your sole proprietorship in Canada

You're a Partnership

Maybe you have a partner in your small business; so there are at least two people to share in all the profits and/or losses. Just like a sole proprietorship, a partnership is easy to form and dissolve and not so formal in general to operate. Again, though the great drawback to a partnership is unlimited personal liability for all the partners for any debt or loss incurred by any other partner in the business; regardless of each individual's capital contribution.

Register your partnership in Canada

You're Thinking About Incorporating in Canada?

As a corporation, however, your company would be a separate legal entity from its owners, or shareholders. The shareholders control the corporation because they have voting rights. The extent of those rights depends on how many shares each one holds. The shareholders elect and remove directors and approve major corporate decisions. But the company is run by directors and officers, who may or may not also be shareholders. To incorporate, a company must file the Articles of Incorporation (also called a Charter or Certificate of Incorporation) with the government.

Incorporate your business in Canada

Stay tuned for future posts about selecting a corporation name, trademarking, and more info on incorporating your company.


Incorporate in Canada with CorporationCentre.ca
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