How sea-worthy is your business?
The tides of business are ever-changing.
Business owners, who have charted their corporations with the will and endurance of weathering any storm they might face, decidedly have an ocean of opportunity to navigate in. However, they can miss seeing an impending storm on the horizon.
At Pacific Chartered Advisors LLP, we have seen unsuspecting business owners become crippled within their corporations due to:
A disorganized approach to their operational processes;
A disparity between tax planning and wealth preservation;
A resistance to proper documentation and bookkeeping;
A tendency to overlook cost structures and profit analysis;
A general lack of understanding or interest in business fundamentals;
A lack of awareness regarding compliance requirements for all types of corporate tax and personal obligations.
The cost of time, money, and energy to clean up the chaos from an foreseen storm brought on by a CRA audit, drop of business revenue, economic crisis or breakdown in relationships between owners or the owner and employees can create undue stress and losses for any business.
How can you tell if you and your business are grounded with a solid, strategic, financial structure able to sustain the livelihood and long-term legacy of your efforts?
We have created a simple test which we call the Lighthouse Test.
Imagine a lighthouse standing tall on the rocky shores of a beautiful ocean. The water appears calm with a blue sky; however, there is a storm cloud forming in the distance, rapidly coming closer to shore. The light house keeper, familiar with the signs, begins preparing for the impending storm by polishing the light so it’s strong and bright for the boats to be guided safely by it’s beam into the harbour.
The boats out at sea are beginning to be tossed around as the sky gets darker and the waves get rougher. The power of the lighthouse beam becomes stronger as the storm gains in fury and the skies darken. Some of the boats rely on their experienced captains who trust the lighthouse keeper’s knowledge to help bring them through the storm and safely enter the harbour with the trusted help.
Now imagine one of those captains getting upset because the navigational equipment he relies on contradicts the beam from the lighthouse. He chooses to follow this information to come into the harbor—not relying on the accuracy of the lighthouse. Stubbornly, the captain insists he knows how to navigate the shoreline.
His boat gets tossed around and the captain begins to yell at the crew for their inability to keep the boat operational during the storm. The chief mate, second in command, begins to question his actions, believing he is going to steer the boat straight into the rocks on the shoreline. She lacks faith that they will survive. She begins to direct the crew to follow the beam of light as she knows the lighthouse keeper and trusts his guidance. Now the captain and chief mate are at odds with each other as to how to steer towards safety.
Taking on water, the boat’s engine shuts down as it’s over-worked staying afloat in the violent storm. This rattles the captain even more, and now he must figure out how to get the engine to come back online completely. Unfortunately, the parts he needs he didn’t invest in, and there are no replacements onboard.
He has never relied on the lighthouse keeper as he believed his boat would never face such a storm. This captain thought because he has been able to ride out every other storm, virtually unscathed, using his own wits, duct tape, and a tattered paper map that he didn’t need to engage in the help of the lighthouse.
What do you think the outcome would be if such a storm were to happen?
The captains who follow the lighthouse’s guiding beam fully trust that the lighthouse keeper knows how to direct them to the safety of the harbour without loss or incident. Regrettably, the captains depending on their own wits to guide themselves to safety would be ruined in the chaos and confusion of a powerful storm. With a deficiency in vital navigational information to get to the harbour when storms clouds hit, these captains learn the hard lessons of sailing.
Here's the test:
1. How often are you and your business weathering storms in hopes you will fully have the expertise to self-guide your business safely through possible unchartered situations?
2. How often have you frantically run around because you over-estimated your abilities and did not invest in a proper financial course or plan to follow?
Perfect storms are more likely to find you just when you think you are in calm waters.
Too often business owners believe they’re not at risk of encountering storms. They rely on their own abilities and know-how, yet, miss the fact that it’s a collaborative process to navigate safely in oceans and the storms that they will inevitably encountered.
At Pacific Chartered Advisors LLP, we believe in being the lighthouse for your business. We collaborate with you to establish a course for your desired success. We stand tall on the shoreline for you and your business bringing the knowledge that we know that can help provide you with the protection you seek.
We are West Coast Strong.
Are you ready to invest in the guidance for your business? We would be pleased to speak with you. Fill in the information below to arrange for a 20-minute conversation about your business needs.