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PAGE " - WATEHLW WE MMSDAY WWII 3 ttttttt Business Week Wlth the phrases "verge of recession" and "economic slowdown" on the lips of most every Canadian these days, it's no wonder that people are a bit nervous. But while makmg the paycheque stretch :n cover loans and monthly bills is a tricky pub for many during tough economic times, " w the mall business owner who feels the plnch must Thanks to a counselling service offered "\ the Federal Busmess Development Bank F8081. small business owners m W Iterlm Region can learn to protect 'm-msmves agalnat tough times. t nunsellmg Assutance to Small Enter. pr-se, (' Itt was formed m the mid1970s 'v) prnndt‘ management and technical :“(pertlw at J moderate cost. The program, A hwh [r' subsudized by the federal govern- ment. employs recentlyretlred executives Aj1r) choose to remam active, Cub titefansson. co.ordinator of business wunselllng servlces at the CASE office in Kltchener, says cheats generally fall into me of three categories start-up business My busmesses m trouble. or businesses that are dmng well but require some rme ‘()ur mandate xs to provide these busi- nz-x‘ses wrth expertise and a reasonable :nst." Stefansson says. Che counsellors tapproximately 20 at the Kltchener office) offer their business exper- .r‘nCP m everything from auto garages to beauty salons. cml engmeenng to wood Because of the state of the economy, Strt‘amsnn says that more small busmess mach are seekuag help from CASE now man were a year an And they are finding Ihe help they need. Fhey otfer advure m areas such as manufacturing 'expansion planning, mate- rm] flow. plant layout). marketing (adver. mung. sales orgamzauons. pricing and hscnums‘. personnel iturnover, ttme and mutwn studies, personnel pollcxesL finance loan apphcauons. annual budgeting, ac- mums recewabltv, and start-ups tfeasihil, workmg. I wear reta Though the odds are _qtaeked against <mall business owners during economlc mm; OHS Sneaky, yes-lout Mulroney maneuver is legal studies I was m Europe when the news rust came through - and 1t didn't surprise me at all, I had heard It from an Italian news announcer but I couldn't quite decipher hrs words. The radio crack“ funnier names. Mulroney V. Canada __ laws _.. Parhament . something about the Queen I wasn't quite sure what they were saymg. _ . It wasn't until the next day that I read about n m the American newspaper Then I realized what had happened and how our Prime Mimster was about to pull off an Interesting legal maneuver. Brian Mulroney had decided to ap pomt eight new senators by increasing the size of the Senate itself - an action designed to give his political part the necessary strength to pass the 8h in tune to have it come into force by January l, 1991. A "Canine do that?" asked my travelling compamqn. A A A _ . I 'wondered, And then I began to ' Increasing the odds of business survival and omce madagemedt to ladies business plans, market evalua slowdowns, with the assistance of CASE counsellors, business owners can increase their chances of survival, "We're usually involved with people when they are about to make a major Gib Stelansson of the Federal Business Development Bank's small business counselling service offers sound advice during times of economic trouble. investigate to rmd out how this interest. ing political move could actually take ple?sltrgtulr, _ - _ U - The Prime Minister used Section 26 of the Constitution Act to make his move. Under the wording in that section, he is indeed able to increase the size of the Senate by up to eight seats if he has the consent of Her Majesty; -- - _ _ And when he asked'for Her Majesty’s approval, she gave it to him, leaving him in} position to app_oin§ his "fr people. if ihings go right. he will Be in a position to pass the GST - but only by a vote or two. In the meantime, several people - About The Law PredSagel decision, whether they're starting a busi- ness or are already in business. We like the fine tune-up cases because we can often do a lot of good, but we often don't get called until a business is in trouble. We call it including the province of British Colum. bia - have announced that they will be challenging the government's move in the courts. Good luck to them. In my view, they don't stand a chance of getting to first base with their arguments so it's point- less to even start. The section has never been used before in Canadian history, although one previ- ous Prime Minister, Alexander Macken- zie, asked Queen Victoria for her con sent so such a maneuver over a century ago. At that time, the queen refused because she didn't think the circum- stances warranted it. Do they warrant it today? I think so. I believe that any interference with the will of the elected representatives in Parliament is dangerous and no air pointed person - including a Senator, should be allowed to interfere with that. Forget the GW. That's not the issue. What's at stake is a broader legal principle which asks whether or not a group of unelected people can thwart the J. Frederick Sagel is a Kitchener lawyer who lives in Waterloo. . maintenance, mapitering and mentoring, and the mentoring aspect is great. We can often do very good things for good business- es. No business is 100 per cent - there is always opportunity to improve." What on earth are these political hacks in the Senate doing? And who gave them the right to speak for the pegple? _ . A _ That’s what the Queen recognized when she gave her consent. to the move. She knew that in today’s society, any half reasonable request by a Prime Minister had to prevail. willy the elected majority. So watch and see what happens. Because the very existence of the Senate is at stake - and if the Liberals make too much trouble, they may just pave the way to legislate their way out of exis- tence. The Prime Minister is right on this one. His legal advice is sound but - why doesn't he just do the right thing and abolish the Senate. Counselling services for most business, whether they are start-ups or already established, usually involve a day's work at a cost of $350 a day (compared to an average cost of approximately $700 a day charged by independent business counsel- lore). Ah well, things, may well work out that way. But Stefansson offers a little free advice for "recession-proofing" a business: DMost importantly, think strategically. Design a list of potentially harmful situa- tions you may encounter and how you could resolve them. LlBudget your cash flow. Write down how much you expect to take in over the next year and contrast that figure with your anticipated business expenses. As you analyse the numbers each month, you can pinpoint the fluctuations and potential caahflow problems. ElTrim the fat by reducing inventory. Why have more money than you need tied up in inventory when that money could be sitting in the bank earning interest. DReassess you labor needs. Having to lay off several employees during a slowdown can sometimes be painful. Hiring on temporary or contractual basis will streamline your labor needs. UConsider leasing your capital equipment and rent out any unused space you may have. You can generate additional income by renting unused areas incurred as a result of slow business. DFollow up on accounts receivable. The companies you deal with may also be having dimeultieg because of the economic downswing and will likely delay paying their bills. Issue your invoices as soon as possible. UNegotiate payments. Don't be over anxi- ous to get your bills out of the way. Waiting the full 30 days to pay your bills will keep your own cash flow as free as possible, unless you are offered a discount for, early payment. For nioie information about CASE, con- tact the omee, located at 50 Queen St. N. in Kitchener, by calling 744A136. I RECYCLE, Your Chronicle Remember!