Why Being a Leader in Your Community is Important (and How it Affects Your Business)

Why Being a Leader in Your Community is Important (and How it Affects Your Business)

There’s a lot more to becoming a successful business leader than just hitting targets and driving growth. It’s also about being someone who people can look up to and follow. However, it can be hard for many business owners to reach this level and keep their team (and themselves) motivated. We’re here to help explain why being a leader in your community is important and how you can build the necessary skills to improve your business and your personal life.

Builds Your Reputation as a Leader

Have you noticed that when some people talk, others tend to listen, agree, and follow their actions? These people are considered leaders. And as a business owner, this is exactly how your employees should see you. Being a leader in your community helps to establish respect, authority, and admiration, which can easily trickle down and help improve the dynamics and complexities of running a business and team.

Gets Your Name Out There

Being a leader in your community is also an exceptional way to get your name and business out in front of the public. It helps to boost your company’s profile and positions your business as one that cares and gives back. This helps to attract more customers, especially those who consider corporate responsibility a benefit.

Great Way to Meet New Clients

You’ll also meet a number of new people when participating in community events and activities. This can lead to more networking and business opportunities for you and your company.

Shows People that You Care

As a business owner, not everyone gets to see the other side of you — the person you are outside of work. Helping out in your community allows your staff to see you in a different light while showcasing your compassion for the wellbeing of others.

Helps You Expand and Grow

Taking action in your community will help build confidence, teach you how to communicate with others more effectively, and even negotiate more frequently. So don’t be afraid to get out and get involved. It can be very beneficial as a business owner when you have that mutual relationship supporting your community while they help to support your business too.

Leadership skills are important traits to possess when owning any size business. Being seen as a leader in your community can help you to attract new investors and clients while providing you with new experience and life satisfaction.

How Being Prepared for Life Changes can Safeguard Your Business

How Being Prepared for Life Changes can Safeguard Your Business

Is your business prepared in the case of a major life change to one of the owners or primary shareholders? There are many things that can happen that can lead to disaster if a plan is not already in place, such as an owner becoming disabled or passing away, a divorce that causes shares to be split, a major shareholder deciding to pursue a new opportunity, or disputes among heirs of a deceased shareholder. To avoid significant business disruptions, it’s essential to have a succession plan. Here we’ll explore how being prepared for life changes can safeguard your business.

Protects Your Loved Ones

Significant life changes can happen to you or a business partner at any time and at any age. No matter how much you plan, it’s hard to know what might happen in the future. Having a succession plan in place will help protect you and your loved ones in case you are unable to control or tend to your business. With this in place, you won’t have to worry who will take over your business since it will be fully detailed in your plan.

Avoids Disaster

With a succession plan in place, big setbacks can be avoided or mitigated, and your business can continue to operate smoothly if you or a main shareholder exits suddenly. For instance, the passwords, IT information, data, and client lists, and financial records will fall into the right hands to prevent business disruptions. Your plan will also include the development and training of a new owner or key shareholder, and help to transition them into the role.

Ensures the Right People Inherit Your Business

Your business is your life’s work — you want to ensure that it gets passed on to the right people. Working to develop a thorough succession plan ensures that your business falls into the right hands and addresses any inheritance issues that could arise.

Minimizes Tax Implications

Succession planning can also help you to avoid tax issues down the road. An estate plan can help you to avoid substantial tax implications and any potential probate delays when transferring the ownership of your business in the future.

Establishes an Exit Strategy

Every business owner should have an exit strategy in place. A business success plan helps you to create an exit strategy that is on your terms.
If you own a business, it’s important to be prepared for life changes to safeguard your business. A well planned out estate and succession plan will help you make fundamental decisions about identifying and developing new leaders, maximizing company value, tax strategy, and ensuring that the business, the clients, and your family are protected.

How to Be the Best Grandparent You Can Be Using Through Wealth Planning

How to Be the Best Grandparent You Can Be Through Wealth Planning

As a grandparent, it’s entirely natural to want to give money and gifts to your grandkids. Is this the best way to help them out financially? Here are three ways to be the best grandparent you can be by setting up a financial security net for your grandkids.

Set Up Life Insurance

Your grandchildren can benefit when you have a life insurance plan in place that names them as a beneficiary. Upon your passing, the death benefit paid from a life insurance policy is a tax-free, lump sum amount. However, if the recipient is under legal age, the death benefit (plus the interest it earns) will be held in trust by the province until they reach legal age. That is unless you set up a trust or designate a trustee or administrator to hold the proceeds of the death benefit in trust on behalf of the minor.

Fund Accounts

Contrary to popular belief, trust funds are not just for the elite; they are for everyone. If you want to start a trust fund, there are also a number of different accounts you can set up to distribute funds to your grandkids. A custodial account, for instance, gives you control over the account until your grandchild turns the legal age.

Get Your Grandchild an RESP

If you want to give your grandchild a gift that will benefit them the most, an RESP is the right choice. The gift of education is always a wise one, especially when schooling is rising in cost. Best of all, this is a tax-sheltered program that allows you to make non-deductible contributions annually or in a lump sum up to a total maximum value of $50,000 per beneficiary. When withdrawn, the funds are then paid out as an Educational Assistance payment. If your grandchild decides not to go to school, the contributions are paid back to you tax-free.

If you take advantage of an RESP, the Federal government will also contribute money into it as a grant or bond, such as the Canada Education Savings Grant (CESG). Your grandchild will qualify for the CESG until the end of the year when they turn 17. Each year, the government will match your contribution by 20% up to a maximum of $500 per child, to a lifetime limit of $7200. Therefore, the more you add each year, the better!

Trusts

Don’t forget to make sure you have enough for yourself! You don’t want to financially support your grandkids to the point that you run out of money for your retirement. If you’re considering leaving something for them, be sure to talk to a financial advisor who can help you carefully plan out your retirement plan and estate.

Remember — the greatest gift you can give to your grandkids is your love, support, and memories that will last with them for a lifetime.

3 Reasons Why Investing in Real Estate isn’t for Everyone

3 Reasons Why Investing in Real Estate isn’t for Everyone

Real estate investing takes hard work, proper management, and a decent tolerance for risk in order to be successful. If you want to invest in property and come out on top, you need to have a proper strategy in place. Here we’ll show you the three reasons why investing in real estate isn’t for everyone and what you can do to hedge these challenges to generate more consistent profits.

Cash Flow Risk

Not everyone is able to absorb the risks that come with investing in real estate. For instance, you can be cash flow positive one year and once the local market shifts, enter into a negative cash flow stage that can make it difficult for you to cover your mortgages. If you don’t have enough money in savings to cover yourself, you could be in serious trouble. Many investors don’t realize that they can deduct property taxes, mortgages, bank loans, or line of credit interest as well as operating expenses and capital expenses to earn rental income. This is why it’s imperative to have a proper investment strategy in place to avoid losing money when the market isn’t in your favour.

Rehabilitation Costs

Due diligence isn’t something everyone is great with. But, if you fail to adequately check the history, conditions, and limitations of a rental property, you could end up with excessive rehabilitation costs that limit profits. Many investors require skilled consultants on their side who can help analyze, plan, and execute purchases more effectively.

Tax Risk

Taxation has an impact on the returns of real estate and needs to be considered before investing. Tax rules are complex though, and there can be significant tax implications if you sell the property since you’re required to probate the capital gains for the years in which you didn’t designate the property as your primary residence. Tax risks also exist if you plan to own international property since you also have to consider the different tax laws. For instance, you may be required to pay taxes in the country where you are generating revenue, and you may also have to consider capital gains there as well. However, investment properties can provide significant tax benefits if the owner knows how to maximize their tax strategy.

Owning property can be very profitable if you understand all the risks and taxes that apply to real estate investments. If you’re thinking about investing in real estate, be sure to contact us at The Beacon Group of Assante Financial Management Ltd. We can help you come up with a thorough investment strategy to make more money, take advantage of tax deductibles, and reduce your overall risk.