If you participated in the Canadian governments COVID business loan program (called the “Canadian Emergency Business Account” or CEBA for short) then you benefited from a loan of up to $60,000 of cash during the pandemic. But like all good things, they come to an end and these loans have an important deadline coming up.  While the loan itself is not due until 31 December 2025, if you repay most of the loan by 31 December 2023 (extended from 31 Dec 2022) you will qualify for up to $20,000 in loan forgiveness. So if you don’t repay the loan early you are…

Here’s an interesting fact: Every organization has 3 main functions: Sales and Marketing to generate opportunities,and close deals. Operations to produce and deliver the goods/services sold Finance/Administration for accounting, HR, and other admin functions. Knowing this allows us to understand how work flows through the company. In fact, it’s linear. It must pass through all 3 functions in that order to generate money/profit. Are you aware that every business has a bottleneck, or constraint? That is a mathematical certainty. Why? Because if your business does not have a constraint, you’d have infinite profits. And even Apple doesn’t have that (although some think they are close)... Your…

Well, is it? If you are struggling a little with that let’s talk about how to turn that around. Online businesses have two main challenges: Inventory Management Promotion/advertising Management Really both of these areas stem from the same core problem. What’s that you say? Allright, I’ll just say it again. In order to have a successful online business, you only need to solve one problem. What is that one problem? Cash Management! So what are you thinking at this point? You probably want to ask, “Ok smarty pants, why do you think that’s the problem?” Fine, I’ll tell you… Inventory Management What is the definition of inventory? Most…

  Have you ever asked yourself this question? There are several reasons this is important: Do you like your customers? Some we really like, some we tolerate, some we dread every time the phone rings. So in other words, some customers suck up energy and some give us energy. Which can you do your very best work with? Duh… The Pie Is Usually Big Enough I love pie, don’t you? Let’s compare your market segment(s) to a pie. Every market pie has a certain size. It’s impossible to serve the entire market (or eat the entire pie). It’s too big, or at least it should…

  It’s ok, you can be totally honest with me. And I will be honest with you, too.  Most business owners hardly ever look at their financials. There are several reasons for that: The financials are not very accurate It’s difficult to read the financials because they are so messy looking It’s difficult to understand how those financial results ended up on the financials The info on the financials is too old to be useful How in the world can you implement our Profit First Cash Management System (PFCMS) without accurate financials? Answer: It’s almost impossible.  Let’s look at your financials one by one. You good with that? Let’s…

Cloud storage is now easily available to everyone.  This gives the advantage of knowing that your files are backed up and being able to access them from anywhere.  You shouldn’t be storing important files on your computer alone or on memory sticks.  But just throwing files randomly in a folder isn’t helpful either.  You need to be able to organize them so that each file’s purpose is clear without having to open it and so that you can quickly find files when you need them. To organize files well, you need both an organizing folder structure as well as a file…

Do you remember the comedian Rodney Dangerfield? That was his signature line. “I tell you, I don’t get no respect. When I was born, I was so ugly the doctor took one look at me and slapped my mother.” Do your people respect you? Are you getting the results you need from them? Do you sometimes wonder about their commitment? You might ask yourself this question. How do you feel or how do you typically respond when someone tries to exert control over you? I like to watch people walking their dogs. Sounds strange? Maybe it’s because I love dogs. I noticed that…

  Instead of living in the “Cost World” try living in the “Throughput World.” If you are focused on the speed and amount of throughput in your business (while maintaining costs) you are assured of making more money now and in the future. Why is that? It’s because you are looking operationally and systematically at things you can do to improve throughput, which ALWAYS results in making more money. And if you really want to do a deep dive into this area, pick up a book called “The Goal” by Eliyahu Goldratt. It will completely change your perspective about business!!  In our next…

  It all depends on which world you’re in…   What’s that you say? That doesn’t make sense to you? Well, it might if you think about it a little. When we experience cash shortages, our behavior changes, and sometimes it’s not always for the better. Let me introduce you to two different worlds: The Cost World The Throughput World In the Cost World, we are very focused on costs. We look at every single expense and try to reduce it. That’s not a bad thing unless it affects the Throughput World. In the Throughput World, we are paying attention to the speed/pace of the business, and amount of…

Have you ever thought about this? When your business grows, cash can become strained. Why is that? Great question. That shows your interest is piqued!!   The answer is actually quite simple. When your business grows you need additional working capital. Think about that for a moment. When you hire additional employees, expand your inventory to accommodate more sales, buy additional technology or add licenses. Hey, it all adds up!! So now what do you do? Hmmm… All these things require additional funding. And more revenue doesn’t always provide enough cash flow to fund it when needed.  First and foremost, it’s not like birthday…

  Such a question!! And the answer changes about every 15 minutes. Some economists say yes, some are not so sure. Isn’t it strange that we keep listening to disciplines that never have to be right? Economists and weathermen! People we love to hate!! So what should we do about this? Here are two steps you can take NOW to minimize the impact of a recession on your business. Interested? Yea, I thought you might be…  Step 1: Get out a 4 burner stove and put a pot on each burner. Yes, I’m being serious!! Each pot represents a market segment in your business. You…

  Xero is changing the way that it connects to BNZ for its bank feeds.  You need to make a one-time change to ensure that your Xero bank feed continues uninterrupted.  While this change doesn't have to happen until late August, it's best to get this done now. Before you begin you do need to use the Business Banking online product from BNZ.  If you only log in using your personal banking access number then you should contact BNZ right away to get setup with Business Banking online.  If you don't know that you have business banking, then you're probably using personal…

  Sometimes I get a little frustrated and feel stuck. Do you ever feel that way? No? Well, then skip this article. But if you do, and you’re thinking about swatting something (leave that poor puppy dog alone…), let me share something that really helps me work through “stuff” when it starts piling up in my head and feels unmanageable. Here’s the recipe: Step 1: Find a quiet place and get a piece of blank paper Step 2: Draw two lines separating the page into 4 equal quadrants Step 3: Label the top left “Strengths”, the top right “Opportunities”, the bottom left “Weaknesses”, the bottom…

Did I just get your attention? I’m very glad I did!! So by now you’re asking how in the world can I make such a bold claim. I can absolutely guarantee it. How? By implementing our “Profit First Cash Management System (PFCMS)". Have you heard of Profit First? Our friend (yes, he’s our friend) Mike Michalowicz wrote a book a few years ago called “Profit First.” I first became acquainted with Mike at a conference several years ago. I was so enthralled with his presentation that I immediately bought and read his book. Then I called up his office to see what…

  Frequently we get a new client that has a great business and is running it with their “best friend.”  They have total alignment and everything is running smoothly and they can’t foresee even the possibility of things not working out perfectly. We love these clients!  But we hear ominous ticking sounds.  At some point this pollyanna-ish position will change and a dispute will arise.  Having a Shareholders’ Agreement is an absolute necessity when you are doing business with anyone other than your spouse (even then it’s still a good idea, but consult with your family lawyer as well here as local…

  Starting in April 2024 new rules apply to charging GST on holiday accommodation in New Zealand.  Previously, if your gross revenue from accommodation was under $60,000 per year then you did not have to register for GST or charge your guests GST. While that general rule continues to exist, operators of Online Accommodation Platforms (such as airbnb, vrbo, bookabatch, etc.) are required to charge and remit GST on all rentals facilitated through their platforms.  This means that your guests will be paying GST whether you are registered or not. An interesting part of this new plan is that the OAP will…

    Last week I got an automated call from my credit card company.  They had noticed some strange activity on my credit card and wanted me to call to verify the details.  Their message was pre-recorded and automated (I’m feeling suspicious already - I already get several scam calls a week with pre-recorded messages), they included their address in the message (why? They’re not asking me to write to them are they? - this is public data - is this a scammer trying to give me a false sense of security with publicly available information?) and gave a phone number to…

  IMPORTANT NOTE: This article discusses Canadian Taxation matters and may not be applicable to those outside of Canada.  Personal circumstances play a significant role in determining your taxation situation and should be discussed with a tax professional to determine your unique situation.  This information is provided for informational purposes only and does not constitute tax advice. SECOND IMPORTANT NOTE: Be careful where you get your tax advice from.  Rules in the US are quite different from rules in Canada, and most stuff you find on the internet is written from a US perspective.  Also, don’t take tax advice from a plumber!…

In school, our parents and grandparents studied the 3R’s. Do you know them? Reading, Righting, and Rithmetic. There is even a song about it called “School Days.” How about putting a more modern spin on it? 'Reading' “There are none so blind as those who will not see.” This has nothing to do with eyesight. I’m talking about your openness and desire to see what really needs to be seen in your business. It’s easy to see things like our daily tasks (Send an email, make phone calls, etc). But how good are you at reading your business? Do you have a clear picture…

Most online banking platforms have a Tax Payments module that will allow you to set up your business tax payments.  Please note that most will need payments setup one day in advance of the due date.  Please note that if the due date falls on a Saturday, Sunday or non-banking day then the payment is due on the following banking day. Please note that personal income tax payments are usually handled as a Bill Payment (and not covered in this article).. Setting up your online banking tax payments usually requires two steps: (1) Setup and (2) Payment. IMPORTANT NOTE: Online corporate tax payments…