14 Terrace Review — Wednesday, May 11, 1988 Business Beat. Forecasting is key to expansion The key to the successful expansion of by Phil Hart! Manager, Terrace Federal Business Development Bank An operating forecast usually is prepared: ‘on a or, although’ ‘it can-be done-that way and then ‘broken do ee ‘shoster|petiods | for purposes of more detail + extended for a ‘period of four to five years to:help. im png-terti planning. - ett - =) P¥eparation of any operating forecast should ‘be b “-r? oHaOst recent operating statement for the busitiess. an existing business is the question; What kind of an operating statement can be ex- pected after one year? That also is the first question that a potential lender likely will ask if an ap- plication is made for a loan to finance the proposed expansion. = The answer to the question lies in the. 3 form of an operating forecast, This <« - should be based on what the business has-.. ; done recently and on whatitcan =< reasonably be expected to doy, rather o extravagant hhopes.- - tghould take: “TERRACE. BUSINESS GUIDE. ~ ORGANIC CUSTOM CABINETS | SASKATCHEWAN ~ AND FURNITURE Oak — Pine — Birch WHEAT Yop Quallty, Cleaned & Bagged High quality — tow price ; Free Estimates’ Fairhaven Bakery instalfation and delivery Included - Kitwanga, B.C, 349 Fairhaven Cabinet Shop {olso avolloble at Dynomic Health Service) - Kitwanga, B.C, . 849-5673 WestCoast | x » Allred Fuoral Hone Ltd. be Chimney Service | Deditated People, Understanding a Need _ Clean Chimney Maintenance | pirectors — Alf & Jeanette Defrane - Dealer for: . A727 Park Avenue, Terrace, B.C. FINGARD. CHIMNEY | ai r | — 3 = FIRE E EXTINGUISHERS | | m hour call — 638 8319 Memorial Markers and Bronze Plaques “ALUM ELECTRIC -.. Major Apptancas: 7 ‘Frigidaire : Electrohome _ _ estinghouse - Quasar T. Vv. _ Sales. & Service ~ “VER | une Paris Depot .'We service |” or alfmakes : ; “ail makes. _ Kalam Electric Ltd. 3234 Kalum St. 635-6286 | ; ae Semae Love P __. spté account the expected effects of the proposed, expangion 0 ~. “ywevenues, expenses and, consequently, profits. orers “het --En the-case of potential revenues, the operating forecast must : , consider Such factors as increased production resulting from addi- “Residential — . © .Sundegka 7 “CONTRACTING - Commercial Le ‘Balconies ® Roof Decks. | pureoreal™. ~ plushdek™ = duradek. . “Waterproof Vinyl Floor Covering" os tional space and more suitable location, and of increased sales: In the case of expected expenses, a number of factors will be | involved in any operating forecast. These include size of staff and payroll; increases in taxes; higher delivery costs; larger insurance: premiums; higher interest payments because of borrowing to 43916 MOUNTAINVIEW AVE. TERRACE, B.C, 635-5859 he saath ‘Ave., Terrace finance the expansion; differential in rent payments; and the possibility of greater bad-debt losses resulting from increased | iz JC mm sy srcng in sales volume, AS q * The preparation of an operating forecast for an existing BUSINESS SERVICES Ww oF os Automatic business need not consume a great deal of time, but whatever ef- w VOICE PAGERS * PHOTOCOPYING WG is Transmission fort it takes will be well worth it because it provides a number of " 9p 2¢HOUR ANSWERING SEAVICE Nz j, Repairs rt : 638-8195 e Because any operating forecast for an existing business is bas- | 1 . North td er ec | ed on past experience, it provides an opportunity to learn more #1-3238 Kalum St., Terrace, B.C. V8G 2N4 Repairs Ltd I caseo67 about the business; to become aware of factors important to suc- cess that otherwise might be overlooked. Inflatable Boat Repairs ® «2 Durable — -High Quality TERRACE LTD. %, @ An operating forecast may give leads to specific opportunities ac . to increase revenue and may draw attention to areas in which ex- | GLASS } 4711-A Kelth Ave. : ro we wtoa2 ng Repairs i %,2 2 % | penses should be watched more closely. Installations, Splicing, and Repairs. & » & Vulcanizing and Pulley Lagging. 24 HOUR. SERVICE... HI-QUALITY BELTING & -CONTRACTING SERVICES 638-8530 638-0663 ' @ An operating forecast will help in making a decision among the various ways in which expansion can be carried out, in terms of such things as physical facilities and product line. @ A comparison of the operating forecast and the results actual- ly obtained may help in pointing out opportunities as quickly as possible, so that maximum advantage can be taken, It may also Auto Glass Specialists ICBC claims handled promptly 638-1166 ‘MERC CRUISERS +x MARINER OUTBOARDS industrial 638-1876 indicate areas of concern before they become urgent. "HAMILTON & OUTBOARD MARINER JETS . ; Commercial & § , _ As can be seen, the practise of preparing an operating forecast HOMELIGHT LAWNMOWERS Rasldential can be an extremely useful one even for a business which really . Tae HA eS ; “ ~ has no thought of expanding in the near future. In such cases, it SHINDAIWA CHAIN SAWS wi ring | does provide knowledge about an insight into the business. — DL. No. 7860 - & POWER PRODUCTS - Nate s Biel - ++ Wathen Waddell — Etectrical Contrector - -_ 40931 Lavelle Ave, Tertace “KEN’S MARINE. An operating forecast, however, does not guarantee against failure. What it does is increase the chances of success. It is not Moet. enough t to. work hard at a a business; | it takes. some hard thinking an tops Say : Me ._ 4948 Grelg Ave. Phone: 635-2908 mt sAseon: eyes Kitimat for new plant site Kitimat operation, ‘said the com- . pany wants to build the 25-million-pounds-per-year yo. Face Frame & Europa syié' Cabinots : 4: © Cedar Windows and Doors... -¢ Commerciat & Residential Cabinetry —_ Alcan. Aluminium's: head oft . fice in Montreal announced _» recently that the company will Biel lee ek v Bye og cub eml . eee dice so A} . “ ye. 1 tae ok A} 4 | . “ build a plant for production of a ‘new aluminum product in Canada, and it appears Kitimat . .is one of two sites being given primary consideration, - The product, called Dural, is a new, type of ceramic particle- reinforced aluminum that Alcan says can be used in a range of applications currently occupied by unreinforced aluminum, steel and titanium. Industrial uses could include automotive and aerospace components, defense equipment and sporting goods. Allan Hewitson, public rela- tions manager for Alcan’s plant adjacent to an existing smelter because production of Dural involves casting of molten . aluminum. Alcan’s two Cana- dian smelters are the Kitimat works and another plant in — Quebec. A senior executive with Alcan in Montreal stated that the com- pany plans to have the new plant in operation by mid-1989. Hewitson said he expects the site selection to be announced in about eight weeks. The dollar investment re- quired to build the plant has not been disclosed. OR LN pe a ye ! urs for only Terrace,’ 8 . “Sales and ‘Service for - | Motorcycles * Chainsaws Snowmobile * Marine Suppliles "TERRACE EQUIPMENT — SALES *= LTD. 4441 Lakalse Ava., Terrace Ph. 635-6384