. 12. Terrace Review -_ Wednesday, May 18; 10a 2. Forecasting for -~a new business An operating forecast is the key for suc- cess of a new business, just as it is for the expansion of an existing enterprise. How- ever, great time and effort are.required to prepare a forecast in the case of a new business, because there is no record of ex- perience to use as a basis for the projec- : J. ae tion, ; by Phil Hartl Any operating forecast for a new. Manager, Terrace business will show the revenues and ex- penses which could be expected during the Federal Business first year of operation, thus eliminating Development Bank come areas of uncertainty. Before an operating forecast is prepared, it may be worthwhile to study available literature on the type of business planned and to talk to people engaged in similar enterprises. This research can provide ~ some guidelines which will be useful, although key factors will re- main the specific location, physical facilities, type of product, market served and capabilities of the owners and employess of the ~ new business. In preparing any operating forecast, major areas of interest will be those of revenues and expenditures. Projected revenue would be based on the unit price likely for the product and the amount expected to be sold. A list of expenditures would include cost of materials, wages and benefits, depreciation, overhead including utilities, equipment and repairs, delivery expenses, advertising, insurance and taxes, rent, in- — terest on loans taken to start the business, and cash withdrawals ‘ among other things, But beyond revenues and expenditures, there are a number of other factors which must be considered and which must form part of an operating forecast. Questions such as these must be answered: . @ Is the market growing or contracting? Who are the potential customers and what location, advertising and sales force can serve them best? With what frequency do customers order and what does this mean in terms of inventory? What delivery times will be re- quired? ; @ What kind of facilities and equipment are needed? Should they be bought or rented? @ How reliable are the suppliers who will be used? What delivery times can be expected? . @ What are the cost factors involved in production? What regula- tion will govern the business? @ What skill level will employees need? Is there such a labor pool in the area being considered? What wages will have to be paid to meet local conditions? . - @ What system of financial records will have to be kept for the business? What size of staff will be needed to keep them? @ What loans are likely to be needed, or available? @ How much inventory in raw materials will be required? At what level should accounts receivable be established? What should be the payment terms for both customers and suppliers? Answering those questions correctly, and acting on the informa- tion, will solve many problems that otherwise might cause early dif- ficulties for a new business. There always will be business failures, from a number of causes, and preparation of an operating forecast will not eliminate ail of the risks of failure. But an operating forecast will provide insight into the possible risks involved and a more informed basis on which to judge them. _ Alcan summer tours: begin in two weeks Preparations are in the final or statutory holidays. stages for the 34th season of The tour includes the screen- summer tours at one of the ing of a film describing the world’s largest aluminum reduction process and lifestyles smelters. in the communities of Kitimat Starting on Wednesday, June and Kemano; this is followed by 1, the doors of the tour building a guided tour of the smelter and at Alcan’s Kitimat Works will be | a visit to the reduction, casting opened to visitors from near and and wharf facilities. far. Tour guides Dawn-Marie There are no age limitations Smith and Wayne Merkley will, or need for special footwear or once again, be on hand to show protective equipment as visitors visitors this important B.C. and remain aboard the bus Canadian export industry in ac- throughout the tour. tion, Although reservations are not Between June | and August required, they are recommended 31, scheduled tours will be con- as these summer tours are very ducted Monday through Friday popular. at 12:45 and 1:30 p.m. For reservations and addi- Special tours can be arranged tional information, please write for large groups if at least five or phone: Alcan Smelter Tours, days notice is given. However, Box 1800, Kitimat, B.C. V8C there are me-tours on weekends 2H2; phone (604)639-8259. - "TERRACE BUSINESS GUIDE__ “ORGANIC sd - “| -CUSTOM CABINETS SASKATCHEWAN | AND FURNITURE WHEAT Oak — Pine — Birch High quality — Low price _. Free Estimates Installation and delivery included | Fairhaven Cabinet Shop. 849-5673 Top Quality, Cleaned & Bagged Fairhaven Bakery Kliwanga, B.C. 849-5673 (also available ot Dynamic Health Service) Kltwanga, B.C. West Coast Chimney Service Clean Chimney Maintenance Dealer for: . FINGARD CHIMNEY .; FIRE EXTINGUISHERS 635-9557 Pro TecH ELECTRONICS 4519 LAKELSE AVE., TERRACE 635-5134 Complete electronics repair services The Alfred Funeral Home Ltd Dedicated People, Understanding a Need Directors — Alf & Jeanette DeFrane 4727 Pork Avenue, Terrace, B.C. 24-hour call — 638-8319 hh Pamphlets available for . Memorial Markers and Bronze Plaques... KALUM ELECTRIC Major Appliances: _ Frigidaire Electrohome Westinghouse Quasar T.V. Sales & Service VCR Parts Depot We service maior brands “forall makes _ all makes H 9294 Kalum St. Satelite TV systems ‘Gai ae Kalum Electric Ltd. 695-6286 5 CONTRACTING Residential — Commercial ® Baleonles * Roof Decks ‘Your complete source for all your heating A Rit won ® sSundocks _ needs. | re surcoseal™ — plushdek™: = duradek. Northwest Consolidated “Waterproof Vinyl Floor Covering" ~s, Suppy Ltd. 4.3916 MOUNTAINVIEW AVE. 695.5859 5239 Keith Ave., Terrace 635-7158 Specializing li vod 4x4 and 1 Automatic BUSINESS SERVICES “TYPING. tr VOICE PAGERS + PHOTOCOPYING wpe Transmission vr 24-HOUR ANSWERING SEAVICE ‘Repairs | 638-8 195 , _ North Coast Auto #1-3238 Kalum $t., Terrace, B.C. V8G 2N4 Repairs Ltd jsss0r inflatable Beat Repairs a, . - gq@ Durable — High Quality , Vulcanizing Repairs % % of "We specialize in Convever Belt “4%, % Installations, Splicing, and Repairs. “e “4 _ Vulcanizing and Pulley Lagging. ) | 24 HOUR SERVICE _ HEQUALITY BELTING & .. CONTRACTING SERVICES 638-8530 | TERRACE LTD. 4711-A Keith Ave. _ Auto Glass Specialists ICBC claims handied promptly 638-1166 MERC CRUISEAS + MARINER OUTBOARDS 638-0663 638-1876 HAMILTON & OUTBOARD MARINER JETS industrial ; “ HOMELIGHT LAWNMOWERS Commercial & YAMAHA 3 & 4 WHEELERS . - YAMAHA POWER PADDUCTS SHINDAIWA CHAIN SAWS DL No. 7550 & POWER FRODUCTS . KEN’S MARINE Neen nat ti 4946 Greig Ave. Phone: 635-2909 | Wiring ~ Nate’s Electric Nathen Waddell — Electrical Contracior 4931 Lazaile Ave, Terrace i GROCERY | ~\ Laundromat & Carwash. Open 8:30 - 10:30 daily 2701 S. Kalum 635-6180 (604) 638-1437 * Face Frame & Europa Style Cabinets : * Cedar Windows and Doors - .* Commercial & Residential Cabinetry A Terrace a : ‘41 Tree Trimming é a3 rant ; a This spot could -be yours for only ‘ Will cut down any tree! Jt “SAFELY” +} 000,000 liability for YOUR protection 635-7400 Terrace, B.C, ‘Sales and Service for -. , Motorcycles * Chainsaws ‘Snowmobiles *« Marine Supplies ERRACE 4 EQUIPMENT SALES LTD. | 4441 Lakelse Ave., Terrace Ph. 635-6384