|
Keep
good financial records
If you are in business you should keep good
financial records. Many small businesses neglect this
tedious and somewhat time-consuming task. Careful records
take time. And, if you don’t really have the time yourself,
then you should retain a bookkeeper and an accountant.
Why? It will simply pay big dividends in the future.
I’m not really talking about all the tax deductions
that you don’t miss because you have proper receipts,
or even the warranty claims that you can present because
(again) you have receipts. What I’m talking about is
much more significant.
It’s the sale of the business, the accumulated wealth
of your lifetime of work. Is there any value to it?
What is your business really worth? Who will buy it?
And, most importantly, what will they pay for it?
In most industries, there is some kind of a “rule of
thumb”. Businesses are worth a certain multiple of their
net profits. Oftentimes, this ranges from three to seven
times the net profits. But, how are you going to prove
your “net profits” if you don’t have good financial
records. They need to demonstrate some stability. Basically,
that means at least three solid years. Also, they should
illustrate increasing profits. The more you pay in income
tax, the better. If you’re generating profits and paying
income tax and GST, then this must be a worthwhile business.
The Real Estate and Business Brokers Act calls for
the production of financial statements in all cases.
However, there is a specific exception under the Act.
If the purchaser agrees, the vendor can simply provide
a list of assets (equipment and chattels) included,
and another that sets out what is excluded, as well
as particulars of the possession or occupation of the
business premises. Far too many vendors take advantage
of this opportunity. The problem is that they often
only receive a tenth of the true value of their businesses
(or even less).
If you are planning to sell your business in the next
three years, the first item on the agenda should be
to retain an accountant. The second item should be to
drive the net profits as high as possible and in fact
pay a significant amount of income tax.
So, keep excellent records, if not for yourself, for
your purchaser!
Brian Madigan LL.B., Realtor, Coldwell Banker Innovators
Realty, 905-796-8888, BRMadigan@Rogers.com
; www.OntarioRealEstateSource.com
back to the top
The Team thing is all important
At this time of the year the word “team” seems to be
cropping up everywhere. We hear about NHL squads working
as a team as they plod through playoff rounds or the
Raptors playing as a team.
We hear about baseball players trying to make the team
in spring training. We even read in the newspaper how
Chrysler works need to start thinking and working as
teams to ensure continued successful operation of the
plan in Brampton.
With all this talk of teams, it would appear that everyone
knows what a team is and the value add of teamwork.
Unfortunately that is not always the case. For instance,
does the fact that a manager / leader grouped a number
of workers together and gave them a team name make them
a team? I believe not.
Teams are a lot more complicated than just putting
together a specific number of individuals.
1. What are the requirements or tasks that the team
will be required to perform.
2. What are the skills sets required to complete those
identified tasks. Follow that question with one which
may be even more fundamental;
3. What are the attributes necessary in the members
to make the team successful?
These questions are more than just philosophical, they
are fundamental to the success or failure of teams whether
they be in a for profit or not-for-profit organization.
Think about the teams you have in your organization,
can they answer these questions:
• What is the specific end result required from the
team and how is it measured?
• How are the contributions of individuals managed and
measured?
• How are members of the team selected?
• What is the process for assigning tasks within the
team is it static or does it change with the task?
• How are members of the team expected to relate to
/ treat other members?
If you can without qualification respond that the teams
in your organization, and I mean every member of each
team, can give the same answer to these questions, congratulations.
If, however, you are not able to give that response,
is it time to take work on your teamwork?
Gordon J. H. Newman, CPT
Gordon is President of The Newman Learning Group Inc.
an organization dedicated to providing value add solutions
to improve the bottom line performance of organization
and individuals. Gordon may be reached at gordon@newmanlearning.com
or 905-790-2944
back to the top
Optimize
shipping/logistics efficiency and costs
Are you planning ahead to move your freight or are
all your shipments last minute "rush" shipments?
Rush shipments usually means the fastest mode of transportation
is required. Faster means of transportation equals rising
costs. While everyone understands the trade-off of the
higher rates of air travel against the financial gains
derived from providing the service, on time; still many
of you have expressed an interest in keeping costs down
The biggest factor in keeping costs down is to plan
ahead. For deliveries where timing is not critical the
choice will probably be a lower cost form of transport
such as truck (ground) which would be associated with
extended transit times.
Here are some points to keep in mind when planning
to ship freight:
Plan Ahead.
• Give your logistics company ample lead time; They
are looking out for your best interest and will determine
the most efficient and cost effective way to ship your
freight, taking into account all the indicated parameters
• Do not assume you know the correct transit times.
Check the transit times, with your logistics company.
Ask them when they will need to pick up the freight
in order to have it there on time.
• Allow extra time for the unexpected, during busy
times, holidays etc. Consider the weather especially
in Winter - a snowstorm could really hold things up.
"The Fraser Pass" in B.C. has often closed
due to avalanches. (some may even say its infamous for
that)
• Consider sending your Trade Show Freight to a designated
advance warehouse.
• Coordinate your return shipment at the same time
as you arrange delivery to the show. After the show
ensure someone is there to oversee the outbound shipment
from the show.
• Always remember those last minute shipments turn
out to be the most expensive, especially when the only
way to get it there on time is by air. Air shipments
are always far more expensive than ground moves.
Label Your Freight
• USE LARGE PRINT
• Put all pertinent information on the labels.
• Use a minimum of two labels per piece.
Each label reduces the chances of the freight getting
misrouted or lost. In the event that the freight does
get to a place where it shouldn’t be, it can be easily
identified and sent to its right destination.
Skidding
• All shipments unless crated, should be put on a skid
and shrink-wrapped.
• Consolidate multiple piece shipments; all pieces
should be put on a skid and the entire skid shrink-wrapped
so that the entire shipment stays together; thus ensuring
that all pieces arrive at the same time.
In summary, planning ahead, being detailed and well
organized will help reduce shipping costs, improve profitability
and prevent headaches.
Carol D'Alessandro is VP, Business Development of Logistics
Associates. If you have a logistics question, call Carol
at 905-861-9600 or visit http://www.logisticsassoc.com
back to the top
|
