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Path To Small Business Success

The path to small business success is paved with both opportunities to take advantage of, and […]

Path To Small Business Success

Path To Small Business Success
The path to small business success is paved with both opportunities to take advantage of, and tasks you have to complete. If you find yourself putting off tasks like accounting and finances, they can lead to unexpected late-night and weekend catch-up sessions.

Here are five easy ways to simplify your finances so you can focus on what you do best – grow your business.

1. Separate Your Accounts

Opening a business bank account will allow you to keep your company finances separate from your personal ones. Apply for a business credit card to make it easier to track company expenses. Most major banks provide several options that offer points, cashback, and other benefits so you won’t miss out on any rewards.

2. Set up Pre-Authorized Payments

Use your business credit card to set up pre-authorized payments for monthly expenses such as internet and utilities. This will help build your business credit, ensure you never miss a payment, and free up your monthly cash flow.

3. Go Paperless

Have invoices and bank statements e-mailed to you and file them on your computer. If you don’t have a back-up system, invest in one or use a secure cloud service to protect your files in case of a computer crash.

4. File Receipts

Instead of letting receipts pile up on a corner of your desk, get a banker’s box and file folders for storing bills and other business papers. Organize the files by major categories – office supplies, transportation, entertainment and others – and clean out your wallet and briefcase at the end of each week so you don’t misplace any. This will make filing at tax time much easier.

5. Invest in Business Software

To manage your books, select a good accounting software program. There are many to choose from and some offer the added benefits of invoicing, time tracking, and expense management. With some online versions you can even sync directly with your bank account to further simplify accounting. Also, in today’s mobile world, the ability to take payments online or on the spot can help your business stay competitive.

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5 Tips To Manage Cash Flow

Cash is king—it’s a common saying in the business world. But surprisingly few entrepreneurs take steps […]

5 Tips To Manage Cash Flow

5 Tips To Manage Cash Flow

Cash is king—it’s a common saying in the business world. But surprisingly few entrepreneurs take steps to manage their cash flow so they don’t wind up with an empty bank account and nothing to pay the bills.

Getting control over your cash flow helps you prepare for slow periods, plan your financing and have peace of mind.

Follow these five steps to get a better handle on your cash flow.

1. Check your profitability

First, make sure your business is earning a reasonable profit. Even the greatest cash flow management won’t help if your fundamentals are out of whack.

Analyze each product and service separately to see whether it’s pulling its weight. Make sure your products are appropriately priced, and work to eliminate inefficiencies. Instead of just chasing sales, chase profitable sales.

2. Do a cash flow projection

Next, prepare a cash flow projection for the coming year. This is your early warning system for cash flow hiccups. Use an Excel spreadsheet or accounting software to plug in expected monthly cash inflows and outflows, including anticipated big-ticket purchases.

Use the projection to anticipate slow periods and plan in advance what to do about them. Through the year, check your actual cash position regularly—once a week or month—against your projection to see how you’re doing and deal promptly with any divergences.

3. Finance big buys instead of draining cash

One of the most common cash flow mistakes is using cash to buy a major long-term asset, instead of getting financing. Even if you feel flush right now, you may suddenly wind up short of cash if you experience a sudden revenue shortfall or rapid growth.

Use your cash flow projection to plan your financing needs ahead of time, not in the midst of a crisis, when bankers may be wary to lend. Also try matching the lifespan of a purchase with financing of similar duration.

4. Speed up cash inflows

Getting money into your business more quickly can save you carrying costs on your line of credit. Some tips: Send out invoices more quickly, ask customers to pay electronically and charge interest to slow-payers.

5. Raise cash quickly in a crunch

Facing an unexpected cash flow crunch? You can raise cash quickly using various techniques:

  • approach your bank for help
  • check your inventory and assets to see what you can sell off, even at a discount
  • ask suppliers or your landlord for extra time to pay bills
  • offer your customers a big discount to earn some quick sales
  • Contact Pinnacle Capital Partners!
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What’s driving commercial real estate values?

Canadian commercial real estate has been a great investment over the last decade. Although the sector […]

What’s driving commercial real estate values?

What’s driving commercial real estate values?

Canadian commercial real estate has been a great investment over the last decade. Although the sector is changing due to technology and demographics, industrial and office space are set to continue to do well. Retail, on the other hand, will be under more pressure to re-invent spaces to maximize value.

A relatively low Canadian dollar, a stable financial system and a growing economy have made Canadian real estate an attractive investment for foreigners who have helped to drive up property values in recent years.

Today’s low vacancy rates for office and industrial buildings in most of Canada’s major cities are allowing landlords to raise rents and obtain longer leases from commercial clients.

This means that capitalization rates (cap rates)—the ratio of a property’s annual net operating income over its market value—have trended lower over the last decade, creating more value for owners.

Cap rates currently range between 4% and 10% depending on the type of asset (office, industrial, retail, or hotel) and the city in which the property is located.

At the high-value end of the range are sought after offices in Vancouver, Montreal and Toronto, while shopping malls in Edmonton and Calgary, where the economy has not been doing as well, are at the lower-value end.

Tech companies re-inventing demand for office space

Despite an increase in commercial construction—up 11% on an annualized basis in real terms in the first quarter—a lack of office space remains a problem in some of Canada’s biggest cities. The lack of supply keeps property values high and has pushed up rental rates—great for property owners. Tenants, however, are faced with renewing their lease often on longer terms or paying considerably more at a new location.

In response to these market dynamics, shared workspaces are becoming more popular to maximize a space’s use. Many companies are encouraging more remote work, or implementing seat-sharing—where employees no longer have a permanent desk.

Elsewhere, the rising trend in shared workspace, promoted by companies, like WeWork and ShareDesk, is driven by the growth of the gig economy—freelancers, consultants, part-time and contract workers who do not require a fixed place of work.

Given low vacancy rates, the supply of office space should pick up. However, according to CBRE, part of the reason it’s unlikely to grow significantly is due to rising development costs. Land, materials and labour have all become more expensive. As well, municipalities have added more development charges and created long planning and approval processes.

Overall, continued low cap rates for office space are likely to prevail, especially as hiring increases in sectors such as technology, professional services and education.

Retail hit by technology and slower consumer spending

Consumer spending slowed from a pace of 3.6% in 2017 to 2.1% in 2018, as higher interest rates forced up debt-servicing costs, resulting in less household disposable income. This is bad news for owners of retail properties. Retail vacancy rates have risen, according to Morgard, as companies such as Sears, Gap, HBC’s Home Outfitters and Payless Shoes have closed up shop.

Another factor affecting retailers is e-commerce, which represented 3% of Canadian retailers’ sales last year. As more people purchase items from the comfort of their home, shops are becoming showrooms, and malls are transforming themselves into experiential places for food and entertainment. Retail properties that can be transformed to maximize the space’s value in these ways will benefit in this changing marketplace.

e-commerce supporting industrial property values

While still a small share of total sales, e-commerce is having a significant impact on industrial real estate. The logistics industry is growing as companies focus on moving inventory quickly from manufacturing plants, to warehouses and distribution centres, and ultimately to the customer.

Indeed, the value that warehousing added to the Canadian economy more than doubled over the last 20 years.

While 1.7 million square metres (18.5 million square feet) of industrial space will be constructed this year, this represents only 1% of existing inventory, according to CBRE. Hence, new construction is unlikely to be sufficient to satisfy growing demand, especially in cities like Vancouver, Toronto, Montreal and Halifax.

Bottom line

A low Canadian dollar will continue to make commercial real estate attractive to foreign investors, underpinning prices in major markets. As with many areas of our economy, technology and demographics are having a profound impact on this sector. Property owners will have to harness these trends to their advantage to create value in the coming years.

What does it mean for entrepreneurs?

  1. With interest rates expected to stay relatively low, it can be a good time to invest in a property provided it fits your business’s needs.
  2. Retail properties will be under pressure as consumer spending slows. Entrepreneurs will need to assess how to maximize value from their space, which may include re-inventing it.
  3. Think about how technology can help you make better use of your existing space.
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Press Release – Polycap – Virginia

VIRGINIA—Governor Ralph Northam today announced that Polycap LLC, a Toronto- based manufacturer of specialty caps and […]

Press Release – Polycap – Virginia

Press Release - Polycap - Virginia

VIRGINIA—Governor Ralph Northam today announced that Polycap LLC, a Toronto- based manufacturer of specialty caps and closures for a number of vertical markets, will invest $7.7 million to establish its first U.S. manufacturing facility in the 76,000-square-foot Russell County shell building in Lebanon. This facility will create 48 new jobs.

“We thank Toronto-based Polycap for choosing to locate its first U.S. manufacturing facility and future North American headquarters in the Russell County shell building, which was constructed in 2015 to attract companies seeking an infrastructure-ready facility,” said Governor Northam. “Growing the Southwest Virginia economy and making Virginia’s rural communities more competitive is a top priority for my administration, and we are pleased that this significant project will bring a new corporate partner and critical jobs to the region.”

Headquartered in Toronto, Canada, Polycap is a leading manufacturer of specialty caps and closures for plastic packaging servicing personal care and home product, food and beverage container, medical device, and pharmaceutical product industries. The company has over 50 years of experience as a critical supply chain partner to major, well-known brand owners and distributors.

“Our partners in Southwest Virginia’s e-Region have worked tirelessly to foster a supportive business climate to attract and retain global manufacturers, and Polycap’s decision to establish its first U.S. facility in Russell County demonstrates the incredible impact of their efforts,” said Secretary of Commerce and Trade Brian Ball. “With a high- tech, low-cost workforce and variety of industry-responsive training programs, Southwest Virginia offers a competitive advantage to companies of all sizes. We look forward to continued economic momentum in the region and to Polycap’s successful future in the Town of Lebanon.”

“In response to growing demand for its products, Polycap is opening its first U.S. location in Lebanon, Virginia, and we look forward to establishing a successful manufacturing center for our Cap and Closure business to best serve our customers with a highly efficient operation,” said Tom Lato, President of Polycap LLC. “We are utilizing the most advanced industry technology to compete with any jurisdiction in North America. This will include consistent, reliable production to ensure supply chain continuity and quality for our valued customers. Our focus on a safe, vibrant work environment is attracting the best possible team for our future growth and development. We made the decision to choose Virginia, for what will eventually become our North American headquarters, over options in Ontario and Ohio because we believe Virginia offers the most to contribute to our success. Success is based on people, and Virginia offers excellent education to provide strong candidates for employment. Government at all levels, coupled with various industry associations, provides unprecedented incentive programs such as House Bill 222, which was spearheaded by Delegate Will Morefield and Delegate Lashrecse Aird. Local banks with a history of impressive performance provide the third leg of support. We hope to be able to contribute to the fabric of Lebanon community life and become a successful partner in business.”

The Virginia Economic Development Partnership (VEDP) worked with Russell County and the Virginia Coalfield Economic Development Authority (VCEDA) to secure the project for Virginia. Governor Northam approved a $130,000 grant from the Commonwealth’s Opportunity Fund to assist Russell County with the project. VCEDA approved a loan up to $3.37 million to the Industrial Development Authority of Russell County to build out the shell building for the project. VEDP will support Polycap’s job creation through the Virginia Jobs Investment Program (VJIP). VJIP provides consultative services and funding to companies creating new jobs or experiencing technological change in order to support employee training activities. As a business incentive supporting economic development, VJIP reduces the human resource costs of new and expanding companies. VJIP is state- funded, demonstrating Virginia’s commitment to enhancing job opportunities for citizens. Polycap is also eligible to receive Sales and Use Tax exemptions on manufacturing equipment.

“The Russell County Industrial Development Authority (IDA) is excited that Polycap has chosen Lebanon as the location for its first U.S. facility,” said Chairman of the Russell County IDA Ernie McFadden. “The type of jobs that will be offered by Polycap bring us one step closer to providing a stable and diversified economy to Russell County. We are confident that Polycap will have a positive impact on our community. The company’s decision to locate in Lebanon is a testament to the partnership that we have with VEDP, VJIP, VCEDA, the Russell County Board of Supervisors, the Town of Lebanon, Cumberland Plateau Planning District, Virginia Community Capital, and our legislative team consisting of Senator Ben Chafin, Delegate Todd Pillion, and Delegate Will Morefield. These incentives, in conjunction with the value provided by House Bill 222, gave the company a clear understanding of our commitment to grow the economy in Russell County. Each of these partners played a vital part in making this project possible, and we are very grateful for the commitment they have demonstrated to our community.”

Governor Northam signed House Bill 222 during the 2018 General Assembly session. This bipartisan legislation, sponsored by Delegate Morefield of rural Southwest Virginia and Delegate Aird from the city of Petersburg, provides tax credits for up to 10 years to an eligible company that moves to certain economically-distressed localities, which includes several areas in Southwest Virginia.

“On behalf of myself and the Town of Lebanon, we are excited and pleased that Polycap has made its decision to locate the company in our town and county,” said Mayor of the Town of Lebanon Tony Dodi. “Working with our county, town, IDA, VCEDA, and other agencies has made this a reality. We are excited that our citizens will have another opportunity for gainful employment.”

“VCEDA was pleased to assist the Russell County IDA and the Town of Lebanon in recruiting this project to Lebanon,” said Jonathan Belcher, Executive Director and General Counsel for the Virginia Coalfield Economic Development Authority. “The company will be providing jobs in a diversified manufacturing sector that will add to the excellent base of manufacturing companies already operating in the region, while providing good manufacturing jobs for the citizens of Russell County and the surrounding area.”

“Securing Polycap LLC’s investment in Lebanon is a huge opportunity for the people of Russell County and Southwest Virginia, and I want to thank Polycap for its commitment to the region and for seeing the value of investing in the workforce and economy of Southwest Virginia,” said Senator Ben Chafin, Jr. “The creation of 48 new jobs in advanced manufacturing will bring new economic opportunity and security to our communities. Polycap’s investment is another step forward in creating a more thriving and diverse regional economy.”

“We are thrilled to officially welcome Polycap LLC to Russell County and Southwest Virginia,” said Delegate Todd Pillion. “A lot of hard work has gone into making this day a reality and a win for our region. This project will expand our manufacturing base and create good jobs here at home. The quality of life and skilled workforce that Southwest Virginia offers makes this a great place to live and do business. We are glad that Polycap recognizes that and decided to make this investment in our people.”

“The Polycap expansion is exciting news for Southwest Virginia!” said Delegate Will Morefield. “Diversifying our economy and attracting new industries is a top priority of mine. We cannot thank the company and all of those involved enough for committing to our region. Delegate Aird and I are pleased that House Bill 222 is finally doing the job it was intended to do. We are looking forward to many good things to come.”

Overall, this will be a $7.7 million investment by Polycap, guided by Pinnacle Capital Partners.

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4 factors a banker will consider before lending you money

Understanding how a banker looks at an entrepreneur can increase your chances of success in landing […]

4 factors a banker will consider before lending you money

4 factors a banker will consider before lending you money

Understanding how a banker looks at an entrepreneur can increase your chances of success in landing the financing you need.

One thing to understand is that a banker will take an objective look at your business and his or her opinion might not jive with your vision.

Sometimes entrepreneurs think they should receive more money than the fundamentals of their business merit. They also often underestimate the riskiness of their project.

Bankers can be your ally

At the same time, entrepreneurs shouldn’t forget that bankers are in business too and need to find and keep clients. That can make them an invaluable resource for new business owners.

Don’t think of your banker only as a source of money, but also as source of advice. A banker sees several business plans a week, so it is safe to say that he or she often has much more experience than the entrepreneur.

You can avoid a potential “no” by stepping back and by taking another look at your business.

Key factors your banker will consider

Whether your plan is to start a business or expand your existing company, here are some key factors a banker is considering when asked for a business loan.

1. Your personal and professional profile

The first thing a banker will be looking at is your character and previous business experience. The first impression counts for a lot. From dress and attitude to the way you present your project, the banker will be trying to assess your ability to manage the business.

An updated CV underlining your skills and expertise related to the business should be on your check-list.

2. The viability of your project

The first question the banker has to answer when looking at your business plan is: “How realistic is it?”

The viability of your project will be assessed in terms of the strengths, the opportunities and the risks presented in your business plan, including financial forecasts, the management team’s experience and the marketing and sales strategy.

You have to convince the banker that your business can become viable and that you are ready to take it there.

3. Your financial capacity

Having a solid credit history says a lot about your trustworthiness and ability to run a successful, profitable business.

A willingness to put a significant amount of money into your business will show your lender that you are committed to the project and willing to share the risk. The banker will also need to know how you are going to use the money, when and how you are going to repay your small business loan and whether there’s any security that can be pledged against it such as equipment, buildings or personal property. It might take two or three meetings to sort everything out.

4. Your knowledge of the market and the competition

The banker wants to see that you have built your plan based on a sound analysis that takes into account the market, the competition and the economic context. Do your own research and show that you know the trends, the opportunities and the risks.

This boosts your credibility. A simple, concise presentation of facts and figures will back up your statements and business plan.

Contact Pinnacle Capital Partners to walk you through this very important process!

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Press Release – Hematite – Ohio

It has been 5 months since Hematite Inc. celebrated a Grand Opening Celebration (June 21st, 2018) […]

Press Release – Hematite – Ohio

Press Release - Hematite - Ohio

It has been 5 months since Hematite Inc. celebrated a Grand Opening Celebration (June 21st, 2018) at their new manufacturing facility in Englewood, Ohio. This is a very exciting time for the company as it represents not only the culmination of all the hard work to get to this point, but it also represents all the great things that are coming in the future. “I want to thank the entire Hematite team both here and in Canada. Without them, none of this could be possible, and this is ultimately a celebration of them and their efforts,” says Bob Kinion, General Manager.

Several special guests attended – customers, suppliers, contractors, architects, financial partners, and staffing partners & advisors. “A special thank you to many of the state and local agencies that have been absolutely fantastic in providing support to the Englewood team, Dayton Development Coalition, Montgomery County, Jobs Ohio, and The City of Englewood” says Jacques Nadeau, COO.

Hematite has invested $14 million into its 106,000 square foot production site and have plans for another $5 million by 2019 as they continue to launch new programs. “Ohio has become a very important part of our family. We are honoured to have Secretary of State Jon Husted, Governor Kasich’s regional representative, State Senator Beagle, as well as State Representative Henne attending our celebration” stated John Pavanel, President.

Hematite Inc. is a “Green Company” with its beginnings as a material recycling company focused on the diversion of post industrial waste from landfill. This green culture continues today as the company continues to find useful applications of this material in treating the underbody of vehicles.

Hematite provides highly engineered solutions to the automotive industry emphasizing recycled plastic technologies and is an innovator in the manufacture of acoustics, air and water management components.

Pictured above are Montgomery County Community & Economic Director Erik Collins with Hematite’s chief operating officer Jacques Nadeau and Mike Panayi, President of Pinnacle Capital Partners, who orchestrated the US expansion on behalf of Hematite.

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Press Release – MSW Plastics – Ohio

MSW Plastics is proud to announce that they are expanding their production facilities into Ohio. The […]

Press Release – MSW Plastics – Ohio

Press Release - MSW Plastics - Ohio

MSW Plastics is proud to announce that they are expanding their production facilities into Ohio.

The Canadian manufacturer of moisture-resistant wall material has purchased a former warehouse and factory in Vandalia and plans to bring 50 jobs to the site when full production is reached.  It is a 62,000 square foot building located close to the crossroad of Interstates 70 & 75, serving as a more convenient location for their US customers.  Production in the new facility is expected to begin in late 2018.

Mike Panayi, President of Pinnacle Capital Partners, said improvements and renovations were in store for the building at 6161 Ventor Ave., the former home of Encon and Eco-Groupe, which also manufactured plastics.

Pinnacle Capital Partners financed MSW Plastics move to Vandalia, which will be the company’s US headquarters.

MSW Plastics received $320,000 in development funds from Montgomery County to make the project possible.

“We expect in full production that we’ll have 50 people,” Panayi said. “That’s based on our experience in Canada.”

With this expansion there are multiple benefits that US customers will see:

  • Faster delivery; which means fewer hours of travel, leading to faster shipping & reduced travel costs for US customers.
  • American made products; products will be proudly manufactured in the United States.
  • Less hassle; products manufactured in the US will reduce cross-border shipments & inconveniences

Overall, this will be a $11 million investment by MSW Plastics, guided by Pinnacle Capital Partners.

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GUIDE TO FUNDING FROM GOVERNMENTS, BANKS, AND EQUITY SOURCES IN CANADA AND THE USA

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