This document discusses why finance is needed for businesses and how to obtain financing. It notes that finance is needed to start new businesses, expand existing businesses, or purchase other businesses or assets. Some options for financing mentioned include bank loans, government grants, private loans, and funding from family and friends. However, the document states that for most options besides family/friends, a business plan is required. The business plan demonstrates an understanding of the business, its vision, and how it will adapt to economic changes. The document provides examples of industries that have successfully obtained financing. It also discusses considerations for buying, selling, and succession planning for a business, as well as establishing power of attorney and wills.

1. June 2ed, 2013
Finance and Planning
Mokhles (Mike) Mokhtar, CMA. CPA. CA
B.Comm. MFAC

2. Why do you need Finance
• Start new business
– Sole Proprietorships
– Partnerships
– Corporations
• Own Corporation
• Franchise.
• Expend your Business
– Leasehold Improvement
– Equipment
– Buy out a Partner.
– Buy Building.
• Cash Flow

3. How will you Finance those
Projects?
• Bank Loans
• Government Grants
• Private Loans
• Family and Friends

4. 4
• For any of the above type of finance accept for
family and friends you need business plan.
• Why do you need a Business Plan?
– For your self
– For lenders
• Shows you understand your business
• Have a vision for future
• Understanding the economic changes and how you will
react.
Your Business Plan

5. Before you go to Banks
• Use professional services
– Do not do it your self (if you get refused it is bad)
• Ask for previous experience

6. Industries we secured finance
• Car dealers
• Auto containment
• Car Parts company
• Car parts manufacture
• Computer companies
• Gas stations
• Oil change companies franchise.

7. • Doctors
• Optical
• Optometrists
• Sleeping Apnea
• Pharmacies
• Gold companies
• Private School
• Day care
• Gym
• Churches
• Banquette halls.

8. Buying a Business
• When buying a business you want to buy
asset.
– Tax reasons
– Liability reasons
• If you have to buy shares bring price
down. (ask tax specialist)

9. Selling a Business
• If you selling your business you want to sell
shares.
– Capital gain only 50% taxable
• If you have to sell assets increase the
price. (ask tax specialist)

10. Succession Plans
• How can you pass your business to next
generation with good tax planning.
• Prepare next generation to lead the
business.

11. Power of Attorney, Last Will and
Insurance.
• Why do you need power of attorney?
• Last will
– Loved ones
– Church

12. Conclusion
• You need finance for business to grow.
• You need to have a plan for your business (selling
or succession plan)
• Prepare for the unknown (disability, death)
Questions
Thanks