What Government Funding Can I Get for my Business?

If you are like most Canadians in business, you've probably wondered if you can ever get something back from the government, after you've paid all those taxes over the years. It seems only fair.

The best situation is discovering that you are eligible for a government grant or contribution. Grants do not need to be repaid and contributions are only repaid in certain cases. The problem is that these are few and far between. Generally, grants are available for specific programs and have very specific criteria. For the most part, grants usually are provided for specific industry sectors or for certain demographic groups.

On the other hand, there may be other government options that are applicable to your business. For example, you may be eligible for a government loan guarantee. This would enable you to get a loan that you might otherwise not receive approval for. With the government behind you, the bank will be far more willing to talk with you.

If you hire employees that have certain characteristics, you may be entitled to wage subsidies to help offset their salaries. Check with your tax advisor who is currently on the subsidy list and whether your business can benefit from these employees.

If your business makes certain investments, you may be entitled to a tax credit or refund. Check the current information with the relevant tax authorities.

If your business does not qualify for a commercial loan, you may be entitled to a loan from various government departments. Also, these government offices sometimes offer loans to businesses at lower rates than commercial lending institutions. A little research may save you some money.

In general, before assuming that your neighbourhood bank is the only lending option that you have, check what's available from the government. You may be pleasantly surprised.

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How to Valuate Your Business

There comes a time for many businesses when it may be necessary to find investors or a buyer. In either case, it will be imperative to assess the value of your business. Long before you approach a potential investor or buyer, you need to know exactly where the negotiations will begin.

Valuating a business is by no means an exact science. There are several common methods that can be employed. Each method uses different assumptions and, logically, each method will result in a different value. Obviously, part of the negotiation will involve agreeing upon the method employed to determine the business' worth.

Many investors prefer the Discounted Cash Flow method to determine the value of the business. It is based on future cash flows. By employing this method, the investor can see a projection of the actual cash that will come to the company and thus determine the investor's return on investment. A similar method is determining the Going Concern Value. This method compares the current investment to future cash inflows. The revenues of previous years are used to project future revenues, on the assumption that the revenues will not change drastically.

Another common method to determine the value of a company is based on assets. A determination of the book value of the company is quite straightforward. The company's net worth, or shareholders' equity, is determined based on the financial statements of the company. Quite simply, subtract liabilities from gross assets and the result is the net worth or book value.

A similar method is determining the liquidation value of the company, based on the company's assets. This method calculates the income from the sale of all the company's assets. The assumption is that equipment and land would be sold at a price close to their market value. Inventory and receivables generally yield a reduced value. A liquidation value is generally employed for the sale of a business, rather than investment purposes.

Whichever method you use, it is best to consult with a professional advisor who can help avoid mistakes that could prove costly.

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Customers at the Centre

An all too common mistake of many businesses is losing sight of what is truly important. It is relatively easy to get caught up in strategic planning, marketing techniques, employee relations, technological upgrading, and a milieu of other items that are important to the successful operation of a business. But, when the dust settles, we tend to forget the most important element of our business – the customer.

The customer is the core of our business. Without customers, business is just…a business. It won't sell but it will be there, though not for long. In today's market, customers are bombarded with information and have more choices available than ever. Gone are the days of Pop's General Store. Pop sold everything and when he didn't, you made do without. Today, it's a buyer's market. Customers can shop for virtually everything they want. Internet shopping makes the world their marketplace. In order for a business to attract buyers, they must be able to reach out to that customer in a way that will get the business noticed.

Find out what the customer really needs or wants, not what you think. What issues are affecting the customer that will cause them to need your product or service? Why should the customer identify with you?

Sometimes, the customer is unsure of what they need. They may know that they are in a certain situation and "something" could help them, if they only knew what it was. This is a chance for your business to fill that void. Customize your service or product to help the customer.

Think outside the box. Inside the box is your business. The customer is outside. Find out what your business must do to break through the constraints. Remember that you need the customer more than they need you. However, when you can create the link that makes their needs your needs, you'll put your business on the winning track.

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What Should Go in My Business Plan?

A good business plan is more than merely a document. It is a carefully designed outline of your business, a veritable blueprint that accurately describes your business and all its components. Business plans differ in length and detail, depending on the nature of the business. However, there are certain basic elements that a good business plan should contain.

Begin with the Executive Summary. Many consider this to be the most important section of the plan. It provides an overview of the key points of the business. It should contain highlights from all sections of the plan and should be written in an interesting, concise manner, not to exceed two pages. Often, the reader will only read this section. If it doesn't grab the reader's attention, they may not go further.

Follow this with a detailed description of the business opportunity. In simple language, describe what this business will do and why it should succeed. Why are you the right person for this business? What is your vision?

You have done your market research. Put the results into a detailed marketing plan. This section of the plan should demonstrate how you plan to enter the market. How do you plan to promote your business? What are your pricing and sales strategies? How large is your potential customer base and how do you identify them?

Build an organizational chart. Describe the key members of your team and what will be their roles. Include the qualifications of the leading managers, including you. This section should clearly convince the reader that this business will have the team to make it happen.

Follow the organizational chart with a description of the operational requirements. How will the business operate? What are the physical requirements? What types of technology will be employed in the daily operations?

Now comes the number crunching. The financial section should contain a detailed outline of your financial forecast for the first three to five years. The first year should be far more detailed. An investor should see that you truly understand the business. This section should contain cash flow statements, profit and loss forecasts, and sales projections.

Remember that the language of a business plan should be directed to an outsider. Make the plan realistic and believable. Invest your time in preparation as this document may be the key to launching your business.

More help on setting up a business plan

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Do I Need a Business Plan?

A business plan sounds like a complex study. In some cases, it may be. But, the question is asked if every business truly requires a business plan?

The answer to that question is "yes", more often than not. A viable business, rather small or large, should make use of a well-designed business plan at some point in time.

Starting at the time when the business is still but an idea, a business plan is an excellent way to organize ideas. It allows you to create a filing system in which the various cogs and wheels begin to come together into a working machine. Long before you begin actually getting the idea off the ground, your business plan allows you to draw a picture of your idea – so to speak – and stand back to take a look if there are any mistakes or problems. Also, none of us are perfect. Especially if we are dealing with a complex idea such as a new business, it is best to have others review our concepts. Your business plan is an excellent way to allow others to help you develop your thoughts and use their feedback to improve what you have begun.

As your business begins taking shape, you will need the business plan to help interest possible investors. Your bank may wish to see the plan when you begin discussing credit with them. Perhaps you have decided to take in a partner. The business plan will be dissected at your meeting. The business plan is the blueprint of your business. It should accurately describe the concept. It will discuss the goals, milestones, financing, cash flow, staffing, and virtually every aspect of your business. It is the theoretical side of the entity. Also, a good business plan should be updated as the business begins operating, especially in relation to financial projections.

Invest the time to write a proper business plan. It is an investment that will have a guaranteed positive return.

Here is some business plan software to get you started.

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Where Passion Can Lead

In today's fast paced, high tech world, young people at the beginning of their careers face a tremendous amount of questions and, sometimes, stressful issues. Perhaps one of the most perplexing questions facing students today pertains to career direction and the road to success.

Many would like to believe that pursuing certain courses of study or entering specific fields is the guarantee to a stable, lucrative career. Would that were true; universities would be an entirely different entity. But, the truth is that there are no guarantees for success. Hard work is still a required pre-requisite for advancement. Yet, if one were to ask business executives for their advice, many would say that passion is an important trait to have.

Of course, it is advisable to do some research when planning a course of study. Look ahead and see where the markets are heading. Which fields are emerging and will present the best employment options several years from now? Which fields have room for advancement? Follow current events and see where money is being invested these days. But, there is still more to take into account.

A career should be more than a job. A job produces income but life is more than just money. And, over time, a job that is just a job starts to pale. Looking ahead, one must imagine where they would like to be and what they would like to achieve. Achievement requires personal drive and that requires a degree of passion. It is passion that gives the personal drive to forge ahead and get the most from your career. An MBA is an important academic credential. Yet, there are many people who have succeeded in business without an MBA. Their passion for success has given them the drive to excel and rise above challenges. Passion is the adrenalin that makes each day a new and exciting experience. And, it is passion for your career that gives you the winning edge over everyone else.

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Learn to Manage

Congratulations! You've been promoted to, or hired for, a management position. The job is waiting for you but what about the people? No workplace is complete with out its nuances and office-politics. If you think that technical knowledge is enough to succeed at your new position, time to wake up. There's a lot more to know.

Understand that management is "them" of the company. If you have moved up the ranks, your relationships are about to change. You simply cannot allow yourself to be friends with the same people you have to manage. Friendly yes; friends no. Anyone who has made the mistake of retaining those close friendships and then had to fire one of those friends will understand. In order to manage people well, you have to remain objective.

From the onset, let the staff know what your expectations are. How are they to be evaluated? Learn what their goals are. Also, learn to consult with your staff. Their experience is most valuable. At the same time, be sure to clarify what upper management expects of you. A common mistake is to hire managers but not supply them with all the tools they need. Don't be afraid to admit that you don't know everything.

If you see problems with certain staff, especially those who may be rejecting your new position, address the problem immediately. Your popularity is not the concern. That has to be built over a period of time. Your goal is to manage an effective team and that starts day one. Don't remain aloof. Your office is your workplace, not a private sanctum. A sign of a healthy situation is well tread carpet from that office leading in both directions.

It is often effective to listen to office gossip, not get caught up in it (or necessarily believe anything). The informal workings of a workplace are part of its lifeblood. You have to know the who's who but don't take sides, just listen. It would be a mistake to assign two employees at loggerheads with each other to a mutual task. Perhaps you can help them solve their differences but work comes first.

Step by step, establish your authority, build your contacts and learn to listen. Effective communication in all directions is your best ally.

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Dealing With Your Boss

There are many different names in the workplace vernacular for dealing with your boss. But, when your goal is to get the job done well and contribute to your own career advancement, there is only one thing that really matters – know how to be as effective as possible.

As business had become ever so complex over the few decades, so have the management systems and strategies behind them. In the ever-relenting battle of the business world, the need to thrive and survive has created new management sciences virtually uncharted a business generation ago. The traditional flow chart and pyramid have been redesigned, allowing for much greater flexibility but also margin for error.

In days gone by, the boss sat in the corner office nearby or, perhaps, one floor up. It was usually possible to drop in for a chat and get to know the person, as well as the position. In this age of instant global communication, it is quite possible for one's superiors to be located anywhere on the planet. Many times, the ability to interact personally is just unrealistic. How can one be sure that they are on the right track? Perhaps all the hard work is just preparing for a surprise bombshell of dismissal?

If you want to succeed, the responsibility is yours, not the boss. You need to create the conditions. Keep the lines of communication open and learn what the boss wants to hear. Don't be afraid to ask. Many times employees are afraid that the boss is only out to get them when that is far from true. Try to keep abreast of what's happening in your company. Your boss also has a boss. Find out what your boss needs and make the information available. Help develop a solid relationship based on mutual need and trust, not fear. Try to appreciate that the boss is probably busier than you so use time accordingly. When the relationship between the two of you is solid, no matter where you are, each of you can help the other achieve goals.

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The Challenges of Female MBA's

With few exceptions, the business world has never been a bed of roses for women. In a society that still views business primarily as a "man's world," women, despite their capabilities and qualifications, continue to fight an uphill battle for equality that is due them.

A recent study conducted by Catalyst, a non-profit organization for women in the workplace, compared 9,000 male and female MBAs entering the workforce over a ten year period. 46 percent of the males received entry-level positions while 60 percent of the women were hired at an entry level, despite the same level of professional experience for both gender groups. Likewise, the men earned $4,600 more at their first jobs.

One of the reasons given for the parities is not prejudice but practicality. Most companies hire employees with a long term plan in mind. It is anticipated that young women entering the workforce after college will have children within a certain period of time, thus disturbing the succession planning of the company. Thus, businesses prefer to invest more in men, anticipating longevity with the company. Women, themselves, admit that family commitments may disrupt their careers and, therefore, they tend not to lobby and pursue the top positions.

The point was driven home in another study conducted jointly by the Columbia Business School and the Women's Executive Circle of New York. The study went beyond entry levels and found that the disparities plague women throughout their careers. In examining women's roles at the 100 largest public corporations based in New York, less than 11 percent of the C-level positions were held by women.

Women are making strides in the business world but the progress is slow. Companies do want equality but this will only occur when the business world attunes itself to the needs of the cultural world, allowing the business world to benefit from the many qualified and experienced women available, while modifying to meet the needs of the women's lifestyles.

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Border Frustration

And there we have it – another dream dashed. The Canadian business community looked across the Atlantic and envied the open borders of the European Union. Imagine shipping materials and products between countries in a virtually hassle-free method. Every day, more than $1.5 billion in goods crosses the border between the U.S. and Canada. Thanks to the near state of panic of the American government, entering the United States has never been more difficult.

To be fair, the U.S. has cause to be concerned. The American nation is probably the number one target of terrorists worldwide. However, many have asked if the overly stringent security measures are not being employed in the wrong places. Are U.S. security measures doing more harm than good?

Take a look, for example, at the Great Lakes shared by Canada and the U.S. At the same time that kindly old grandmothers are having their belongings thoroughly searched, prior to being exposed to full body scans, a low level terrorist, with limited resources and minimal effort, can cross an open body of water between the countries in a canoe.

The auto industry, already in a troubled state, is suffering terribly from U.S. border restrictions. A foreign auto company can import 4,000 vehicles to the U.S. with a single customs clearance. On the other hand, the same number of vehicles manufactured in joint U.S./Canada ventures – where the complete assembly process may involve up to seven border crossings due to the integration of the supply chain – require almost 28,000 customs and security clearances!

For many of us who remember entering the U.S. many years ago using a library card for identification, those days are long gone. Passports are now required and lengthy, sometimes infuriating lines are now commonplace. As Europe moves to a common currency and mutual trust, the U.S. is building a deep moat around its castle.

The economic and commercial links between Canada and the U.S. are far too intertwined to ignore. As such, perhaps the nations' leaders should be searching for ways to punish the terrorists without punishing the innocent bystanders.
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