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July 2023 Edition

Happy Monday, Business Leaders... hope you are gearing up to enjoy the peak of summer season! ☀️

But first, a question for you … Why did you start your business? No really, why? What’s the first couple of things that come to mind? Even if you answered money, totally fine, but what does that wealth enable for you?

It’s important to reflect on this question at least a few times a year, and realign your priorities along the way.

Otherwise, it’s very easy to drift away in the swarm of busy-ness, only to realize much later that you have strayed from the very essence that inspired you to begin this journey. 🚀😎

🌱 FROM THINK TEAM

💡 Tax Implications of Asset vs Share Sale of a Business

• Here’s a preview of our latest blog post:Asset Sale 👀Share Sale 📈Keep in mind, the choice between an asset sale and share sale depends on individual circumstances and professional advice should always be sought.

  • Definition: Sale of individual assets and liabilities of a business.

  • Buyer's Perspective

    • Can selectively purchase assets.

    • Limit liabilities.

    • Often has more favorable tax treatment.

  • Seller's Perspective

    • May face higher taxes due to higher corporate tax rate on income from the sale.

  • Tax Implications

    • Potentially higher tax due to depreciation recapture and no tax exemptions available.

  • Liabilities

    • Does not inherit liabilities unless expressly assumed.

  • Complexity

    • More complex transaction, may require third-party consent.

  • Due Diligence

    • Extensive due diligence needed.

  • Definition: Sale of the owner's share of a corporation.

  • Buyer's Perspective

    • Often simpler to negotiate.

    • Inherits all of the corporation’s liabilities, unless specifically excluded.

  • Seller's Perspective

    • Allows complete exit from the business.

    • May have tax advantages like the Lifetime Capital Gains Exemption (LCGE) in Canada.

  • Tax Implications

    • Sale of shares may qualify for the LCGE.

  • Liabilities

    • Buyer inherits all of the corporation’s liabilities.

  • Complexity

    • Simpler transaction, involves transfer of business entity ownership.

  • Due Diligence

    • More straightforward due diligence, but hidden liabilities may exist.

• Don’t miss out! Read the full blog post here.

🚦HELL YEAH OR NO!

Most of us have lives filled with mediocrity. We said yes to things that we felt half-hearted about.  

So we’re too busy to react when opportunities come our way. We miss out on the great because we’re busy with the mediocre.

If you’re not feeling “Hell yeah, that would be awesome!” about something, say no.

Then, when you find something you’re actually excited about, you’ll have the space in your life to give it your full attention. You’ll be able to take massive action in a way that most people can’t because you cleared away the clutter in advance.

Saying no makes your yes more powerful.

🌎 TOP 5 PICKS FROM AROUND THE WEB

• Xero’s Small Business Insights Report shows concerning data. (Link)

• Everything is Amazing and Nobody is Happy!. (Link)

• Mortgage delinquencies expected to rise nearly 30% in the coming year. (Link)

• Want some awesome Sales Training? Here you go! (Link)

• Find yourself stuck? Here’s How to Stop Procrastinating. (Link)

📚 BOOK NOTES

"The 5 Most Important Questions You Can Ask About Your Organization" by Peter Drucker

🔍 Here are the 5 questions!:

1. What is Our Mission? 🎯

   1. Clearly define the organization's mission and purpose.

   2. Understand the "value proposition" and the unique contribution the organization makes.

2. Who is Our Customer? 🕵️

   1. Identify the primary customer groups the organization serves.

   2. Recognize the needs and demands of customers to tailor products or services accordingly.

3. What Does the Customer Value? 💓

   1. Determine what customers truly value about the organization's offerings.

   2. Focus on delivering exceptional value to meet and exceed customer expectations.

4. What Are Our Results? 📈

   1. Establish key performance indicators (KPIs) to measure organizational performance.

   2. Regularly assess results and progress towards strategic goals.

5. What is Our Plan? 📋

   1. Develop a clear and actionable plan to achieve the organization's mission.

   2. Allocate resources effectively, set priorities, and ensure alignment throughout the organization.

🤓 QUOTE OF THE MONTH

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