18 Terrace Review — Wednesday, June 1, 1988 The owners of any business strive to - ensure that it does not merely stand still but grows in sales, profits and assets. The additional investment usually required for expansion can come from either term borrowing or equity financing. . The equity in any business is that part of the money invested in it which is not debt. There is no easy answer to the ques- tion of which way to finance because of the circumstances peculiar to each business faced with the problem. A pro- Federal Business fessional accountant could provide advice _ Development Bank as to suggested sources of financing of either type for evaluation and financing. by Phil: Hartl Manager, Terrace There are both advantages and disadvantages to choosing equi- ..ty financing. The advantages are that it permits faster growth of the com- pany by raising money; it expands the business’ borrowing power; it improves the firm’s credit rating with suppliers; it reduces the risk to each owner of the business; and it provides ex- perience, counsel and perhaps a more venturesome spirit from the new shareholders. The disadvantages are a possible lessening of flexibility because of shared ownership; the dilution of the interest of the original owners; and the possibility of increased expenses such as costs in- curred in issuing the stock, dividend payments and accounting. Pros and cons of — equity financing If equity capital is decided upon, a company always should raise it before the need becomes urgent. If the search for new in- vestors is delayed until all other sources have been exhausted, bargaining power is weakened and new capital may be available only on rigorous terms. _ Equity financing follows the law of supply and demand. New securities must be attractive to investors, and private sources usually are better for small or relatively unknown companies that may not have established stability or regular patterns of profit. ” There are a number of possible sources for equity capital, in- Cluding added investment ‘by the present owners; sale of shares to employees; or to relatives and friends; or even to customers and suppliers. Other possibilities include a single professional investor or group who might be identified by bank manager, accounting firm, notary or lawyer; larger companies which sometimes invest _in smaller firms whose operations complement their.own; and venture capital pools. .. Whichever source of equity capital is being considered, there ~ “must be careful, thorough and long-term planning, as well as ac- “curate and comprehensive documentation of such things as the company’s comparative balance sheets and operating statements for prior years. “This will demonstrate to potential investors that company management is competent and prospects good, and that the offer of an ownership interest is on terms at least as attractive as other _ investment opportunities open to them. Most successful small companies reach the point when financial - partners should be invited into the business. Sound advice is essential in undertaking this major step and it also is a decision that requires careful study and consideration. School board drafts pesticide use policy TERRACE — The School spraying. Parents, students and _ District 88 board of trustees school staff will be given specific recently released a draft policy notification, and information on governing the use of sprayed the chemicals being used will be pesticides, herbicides and fer- available for parents. tilizers on school property. The In accordance with govern- policy will be considered for ment regulations, chemicals will _ ratification after school staff be applied as directed by the ~~ and the public have had an op- manufacturer by licensed per- ‘portunity to examine it and for- sonnel with the appropriate per- mits, and applications can only The policy states that take place when the school in- ‘‘wherever practical?’ non- volved will not be in session for chemical alternatives will be the following 48 hours. ward their comments. " ysed to control weeds and in- sects. In the event that no prac- dane at 635-2254. ° District personnel will have to -tieal” alternative is available, prepare an annual spraying pro- - notification will be posted onthe gram for the approval of the site 48 hours before and after the superintendent. | The Terrace French Pre-School is now taking names for the new Monday program for “younger” 3 year olds, -gommencing in September, Phone Denise at 635-4943 or __ ‘TERRACE BUSINESS GUIDE __ “ORGANIC .-=—s«|.=s CUSTOM CABINETS SASKATCHEWAN. AND FURNITURE WHEAT - - . Oak — Pine — Birch ‘ , High quality — Low pri Top Quallty, Cleaned & Bagged gh quality — Low price Free Estimates Fairhaven Bakery * Installation and delivery Included Kltwanga, B.C. . Fairhaven Cabinet Shop 849.5673 arvice) | Kitwanga, B.C. {also cveilable al Dynamic Health 5 West Coast Chimney Service Ciean Chimney Maintenance Dealer for: | FINGARD CHIMNEY FIRE EXTINGUISHERS 635-9557 Pro TECH ELECTRONICS | - 4519 LAKELSE AVE., TERRACE 635-5134 Complete electronics repair services Service centre for most @ major brands Satelite TV systerns The Alfred Funeral Home Ltd Dedicated People, Understanding a Nead Directors — Alf & Jeanette DeFrane 4727 Park Avenue, Terrace, &.C. 24-hour call — 638-8319 nm Pamphlets available for Memorial Markers and 8ronze Plaques KALUM ELECTRIC Major Appliances: Frigidaire Electrohome Westinghouse Quasar T.V. Sates & Service VCR Parts Depot We service for all makes all makes Kalum Electric Ltd. am as 6286 CONTRACTING Your complete source for all {7 ) ~ Residential — Commercial your heating Felsen 3 Balconies® Roof Decks needs. __-iT surcoreal™ — pluvhdek”: = duradek. Northwest Consolidated "Waterproof Vinyl Floor Covering" ~~ Suppy Ltd. _ 4-3916 MOUNTAINVIEW AVE. 635-5859 5239 Kelth Ave., Tarrace — 635-7158 | TERRACE, B.C. ; TOTAL Specializing li (Je 4x4 and BUSINESS SERVICES ~7% Automatic te VOICE PAGERS w PHOTOCOPYING ej | de Transmission # 24-HOUR ANSWERING SERVICE Ne i Repairs _ 638-8 195 North Coast Auto #1-3238 Kalum St., Terrace, B.C. V8G 2N4 Auto Glass Specialists ~ ICBC claims handled promptly 638-1166 MERC CRUISERS 1 MARINER OUTBOARDS HAMILTON & OUTBOARD MARINER JETS HOMELIGHT LAWNMOWERS YAMAHA 3 & 4 WHEELERS YAMAHA POWER PRODUCTS SHINDAIWA CHAIN SAWS DL No. 7550 & POWER PRODUCTS © KEN’S MARINE DEE ee at at. 4946 Greig Ave. Phone: 635-2909 B&G GROCERY Laundromat & Carwash Open 8:30 - 10:30 daily el 2701 S. Kalum 635-6180 . A | Terrace 4) Tree Trimming 5 .. \ au” ‘ Will cut down any tree! \ L “SAFELY” 61,000,000 liability for YOUR protection 635-7400 ; Repairs Lid 3220 River Dr., Terrace Inflatable Boat Repairs % <2 Durable — High Quality 9 & Vulcanizing Repairs oe We spacialize in Conveyer Belt “4% % installations, Splicing, and Repairs. \e “4 Vulcanizing and Pulley Lagging. 9 24 HOUR SERVICE HI-QUALITY BELTING & -CONTRACTING SERVICES 638-8530 638-0663 Industrial 638-1876 Commercial& ™ 4 Realdential . Wiring Nate’s Electric Nathan Waddell — Electrical Contractor a Lazaile Ave., Terrace : TERRACE LTD. 4711-A Kelth Ave. ~ (604) 638-1437 * Face Frame & Europa Style Cabinets * Cedar Wincows and Doors .* Commercial & Residential Cabinetry Terrace, B.C. Sales and Service for Motorcycles * Chainsaws BUZUIEU | Snowmobiles x Marine Supplies _.. TERRACE A EQUIPMENT ae SALES “= LTD. __ 4441 Lakelse Ave., Terrace Ph. 635-6384