Money

1
Money PeopleKey ingredients to growingyour
business

• Ken Watson, CFO Partner
• Inuktun Services Inc.

2
Sources of Financing

• Internal resources
• Suppliers
• Corporate Credit cards
• Personal resources
• Family / Friends / Employees
• Debt asset based
• Subordinated debt cash flow based
• Equity

3
Tracking the Cash

• Business Plan?
• Operating Budgets?
• Account Receivables?
• Account Payables?
• Cash Flow?
• Valuation of Company?

4
Walking the talk

• Back up your statements with facts
• Show them the numbers
• Be able to defend your facts
• Historical data
• Reasonable forecasts
• Have definitive action plans
• Where, when, why, how, who and how much
• Define what they will get out of it
• Their return for helping you

5
Business Plan

• Roadmap to destination
• Forecasting tool
• Defines actions and responsibilities
• Benchmark progress
• Identifies the 3-6 key elements for your Tahiti
  report
• Keep it concise

6
Operating Budget

• Drills down from business plan
• Who is responsible for what and when
• Provides measurement for accountability
• Early warning system for required corrective
  action
• Must tie into the key elements noted in the
  business plan

7
Cash Flow

• Staying in business!
• Head problems off at the pass
• Identifies what you need to get through the tough
  times
• Frequency of monitoring?
• Daily, weekly, monthly, quarterly, semi-annual

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Account Receivables

• The best way to grow yourself out of business!
• Are you in the business of banking?
• How are your A/Rs performing?
• Receivable turnover (sales/outstanding A/R)
• Days receivables (360/receivable turnover)
• Credit assessment policy?
• Sensitivity analysis

10
Account Payables

• Suppliers as bankers negotiate terms
• Balancing credit rating with cash needs
• Building a long term relationship
• Cost vs. value
• Payable turnover (Inventory/outstanding payables)
• Days A/P (360/account payable turnover)
• Compare to days to collect A/R

11
Liquidity

• Purchase from supplier N30 terms
• Inventory turn 4x, or 90 days in stock
• Sold on credit A/R N30 terms
• Days to collect A/R 62
• Cash outflow/inflow mismatched 122 days

12
What if?

• Supplier terms N45
• Inventory turns 6x, or 60 days
• Sold on credit N30
• A/R days to collect 35
• Cash inflow/outflow mismatched 50 days
• Using less of your money for a shorter period of
  time!

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SR ED

• Have you applied?

14
Human Resource Needs

• Job descriptions required skills?
• Wage ranges from Directors to Janitors?
• Benefit package?
• Performance evaluations?
• Hiring / Termination policies?
• Employment contracts?
• Time off policies?
• Tracking and coordination?

15
Recruitment

• Defined policies important
• Be aware of market differences
• Vancouver vs. Prince George
• Dont over-promise
• Be clear on the benefits for working with your
  company
• Product / market / interesting technology /
  ability to be cutting edge.

16
Network

• Local HRDC offices
• Local and other post-secondary schools
• Univ. industry liaison offices
• Individual professors
• Local Economic Development Officer
• Benefits of moving to the region

17
Look outside the company

• Be truthful in assessing internal skills for
  important positions
• Strong management / business skills required
• Are internal employees capable of building the
  infrastructure for growth?
• Dont be afraid of change

18
HRDC Programs

• Targeted Wage subsidy programs
• Do you understand them?
• Who is eligible?
• Terms are negotiable

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My Role

• Strategic planning
• Financial relationships
• Internal mentoring
• Operating efficiencies
• Position the company for future growth
• Mergers and Acquisitions
• Corporate structure