Posted on: February 13, 2023
Accounting firm BDO Canada1, found that only one-third of family-owned businesses survive the transition to second generation, with just a third of these getting to the next - a mere 1 in 10 chance of the business surviving for three generations. Often, the reason is insufficient planning.
Posted on: September 9, 2019
If you are a solo entrepreneur or are otherwise self-employed, you are aware that it is nearly impossible to take into account all the various tax consequences of your business decisions. You have a business to run and customers to please, so decisions are often made on the fly.
You hope that you will be able to sort it out adequately at a later date. The problem with this strategy is you are likely paying thousands of dollars in taxes to Revenue Canada that could otherwise be in your pocket.
Posted on: June 10, 2019
Like many business owners, Rick and Warren thought it would be a simple process to continue the business when one of them died.
Nothing could be further from the truth.
Rick and Warren had a printing company and were equal partners. Warren died suddenly. Warren's shares passed to his widow, Sarah, who became Rick's new partner. She expected a regular paycheque to continue, even though she knew nothing about the printing business and could not contribute to the daily operations of the company.
Posted on: October 8, 2018
Business owners have to contend with many facets of financial management, business accounting, cash-flow management, and capital acquisition. The one area of financial management that often goes unheeded or is placed on the back-burner is their personal financial strategy, yet it is the one aspect of a business owner's financial picture that, if not soundly in place, could have the most serious unintended consequences for the business.
Posted on: August 8, 2016
Imagine the following scenario for a moment. You and your partner have opened a business, and are feeling extremely confident about your current success. Your primary competition across the street cannot keep up after one of their co-owners passes away, eventually closing down. Their entire customer base eventually comes your way, and business has never been better. This might be a positive scenario strictly as far as your business is concerned, but a wise businessman or woman should be thinking one thing at a time like this—what if our positions were reversed?