Tag Archive: benefit

Intercreditor Agreements – Ontario Court Of Appeal Considers Circular Priorities

By Andrea Lockhart of Osler, Hoskin & Harcourt LLP

A recent decision of the Ontario Court of Appeal illustrates that secured creditors should address their priority position relative to all other creditors of their borrower in order to achieve a complete subordination of competing security. Failure to do so in this case resulted in circular priorities that the Court was left to resolve. In light of the Court of Appeal’s decision, secured creditors should ensure they are a party to all subordination agreements with the debtor in order to achieve their expected result.

Sales Thought – Pathways Overlooked

by Nick Miller of Clarity Advantage

In which we are reminded that bringing cookies(or some attention)  to the receptionist may not be a waste of time after all.

My long-time family attorney, Al, retired from his practice about two years ago. He left with characteristically little fanfare, sending me and his other clients a letter indicating that he was retiring and selling his practice, and that he would be happy to pass my files to attorney X to whom he had sold his practice.

The two years following my receipt of his letter passed quickly. My needs during that period have been simple, our wills and other estate plan elements have been fine for the moment. I met with Attorney X and was not too thrilled with him.

Sales Thought – Can’t Get There from Here

by Nick Miller of Clarity Advantage

In which we are reminded that a certain amount of flexibility in sales conversations is helpful, even if it ain’t what we expected.

“Who knows how to get to the airport from here?” asked our client 

We had finished our meeting a little early and walked slowly from the office tower to the parking lot, a distance of several blocks, enjoying a softly warm early Spring day – our client, one of my colleagues, and me.

We eased into the rental car, me in the back, client (driving) and colleague in the front. 

 Neither I nor my colleague knew the way to the airport so our client pulled out her GPS device and programmed it. I did the same with mine in the back seat, saying something like, “Oh, I’m happy to do this so you have your hands free to drive, here we go.”  

She finished her programming a little before I did and her GPS voice instructed us to “continue on” for two blocks and turn right. Mine, on the other hand, suggested a left turn.

Sales Thought – It’s A Trap

by Nick Miller of Clarity Advantage

In which we are reminded that 1 pound of discovery is worth 10 pounds of recovery if we make assumptions and present solutions too early.

At least in the movies, somebody would have called out to me, “Nick!!! Stop!  It’s a trap!”

I received a call from a prospective client with whom I had been communicating, on and off, for several years. I had met him a couple of times, face to face. The conversations were… a little awkward. Something about control… physical positioning in the room… couldn’t quite put my finger on it… never felt they were good calls… felt imbalanced. 

So, anyway, I was sitting at my desk one day and the phone rang. I answered and, to make a long story short, he said: “we have been using another vendor for several years. We are looking for something new to help us reach the next level of selling and I don’t think the existing vendor can help us get there. Do you have anything that could help us?”

Barely able to contain my delight after asking a few questions about the situation, I replied,

Ontario Releases Temporary Solvency Funding Relief Details for Pension Plans in Broader Public Sector

The Ontario Minister of Finance announced in the 2010 Budget that the government was considering providing additional temporary solvency funding relief for public sector and broader public sector pension plans. Further details were provided through separate announcements on August 5, 2010 and August 24, 2010. On February 10, 2011, the government released a description of the proposed regulation and said that comments on the proposals were due by March 28, 2011. It is not clear that draft regulations with respect to the proposals will be published for comment. Accordingly, comments should be made on the proposal by the March 28, 2011 deadline. The new regulations are expected to come into effect mid-May 2011.

Conversion of Defined Benefit to Defined Contribution Plans

by Evan Howard of Ogilvy Renault LLP

Most employers with defined benefit (“DB”) plans are looking to contain their pension costs. Accordingly, many are switching to defined contribution (“DC”) plans in an effort to achieve more predictable funding costs.

However, making such a switch can be complex and does not immediately eliminate the funding obligations associated with the DB pensions already accrued or in pay. As part of switching to a DC formula for future service, employers will need

Sales Thought – Good Ideas. Fast Fulfilled.

by Nick Miller of Clarity Advantage

In which we are reminded that, if we want to gain entry to a new account, we may need to present an idea that can be implemented fast.  

 

In Manhattan at the end of a day-long meeting last week, another meeting participant and I fled to Lexington Avenue to grab a cab for the run to LaGuardia Airport. After a quick arm raise, a cab appeared.   We stuffed our suitcases into the opened trunk.  My colleague went left to slide into the curb side of the cab behind the driver. A few seconds  later, watching for passing traffic hurtling down Lex, I opened the street side rear passenger door and began sliding, somewhat stiffly,  into the cab.  With my left leg in and left butt cheek on the rear seat , I paused for a moment to swing my brief case around.  As I raised the case,  the cab driver took off down Lexington Avenue toward  La Guardia.

 

“Whoa, whoa, WHOA!” I shouted.

Farewell to Line 332

In Spring our hearts are turned toward love,
Unless we are Accountants.
Our clients’ slips are pouring in
Like coins into a fountain.

Now some old slips we bring back out
From where they were put by.
We sort them out, new slips we add,
and the oldest we then shred.
But these vision, dental, and drug receipts
bring a mix of hope and dread,
For each slip calls a silent cry:
“Line 332 is a cruel place!
A vacant space where all clients face
a question that may horrify:
‘When a year of us is added up,
were you sick enough to qualify?’”

But there is a stream of smiling clients
Who bypass round the Line.
They’re self-employed or a business owner
With a Private Health Services Plan.
It softens the sting of the harsh taxman
And leaves Line 332 to founder.
All health receipts – one hundred percent –
Are a deductible business expense.

Each one of these can
Set up their own Plan
By calling Aquilian!

Click here for a tool that will tell you whether an Aquilian plan will reduce taxes or not:  http://bit.ly/PHSP_Tool_Ont

www.aquilian.ca
(647) 333-7229

[Ed. note: Line 332 of Schedule 1 of Canada's personal income tax return provides a very small non-refundable credit only against taxes otherwise owing. For 2010 the first $2,024 of medical expenses are not eligible (so many people aren't "sick enough to qualify") and the credit given for anything over that amount is usually much lower than the taxes on the income used to pay for those medical expenses in the first place. An Aquilian Plan for corporations or the self-employed turns 100% of medical expenses into fully-deductible business expenses.]

Sales Thought – Triple Priced

by Nick Miller of Clarity Advantage

In which we are reminded that good negotiating outcomes begin with and depend on value-oriented discovery and selling.

Last Saturday, I felt the urge to cook some salmon for dinner.   Since I was at the office Saturday afternoon, I thought I’d go across the street to the fish market to buy a pound to take home.  At about 5:15, mouth watering with anticipation,  I closed up shop  and walked over.  There before me in their cases lay the orangeish filleted objects of my desire.  No prices marked.

“I’d like to buy some salmon for dinner,” I piped up.

“Sure,” says the man behind the cases. “And how much would you like?”

“A pound,” says I.

He cut the fish. “That’ll be …”  And he quoted a price that was, literally, three times the price per pound  of salmon at the supermarket about a ten minute drive away.

Buy Low, Donate High, Sue to Get Even: More Risks for Recommending Aggressive Tax Avoidance Schemes

by Stevan Novoselac, John Sorensen and Michelle McBride of Gowling Lafleur Henderson LLP

In a recent decision of the Ontario Superior Court, Lemberg v. Perris,1 Eric and Valerie Lemberg successfully sued their loyal accountant, Michael Perris (“Perris“), for breach of fiduciary duty.  Over the course of their almost twenty-year relationship, Perris provided tax and accounting advice to the Lembergs and performed their tax compliance work.

Perris advised the Lembergs to engage in a so-called “art-flip” tax reduction scheme.  The Lembergs accepted Perris’ advice and enjoyed their large tax savings.  However, they were reassessed by the Canada Revenue Agency (“CRA“) to disallow all of the benefits they received.  Subsequently, the Lembergs learned that Perris had received a “secret commission”

Sales Thought – Favorite Question

In which we are reminded to understand our client’s purpose in a discussion.

Someone asked me this week, ‘Do you have a favorite question that you use in sales calls?’

 After overcoming the urge to reply, ‘Yes,’  and listing a dozen wonderful questions, I replied, ‘Tell me a little about what’s happening in your calls.”

The asker’s reply: ‘Well, you know, a question that gets your clients to open up and tell you what you need to know so you know what to talk about or what to sell.’

I found myself wondering about this guy’s social life. Like, has he spent his life searching for the one favorite question or line that would lead otherwise perfectly sensible prospective mates to sigh, swoon, and run off with him to live happily ever after? Has he been searching for THAT one favorite question, too?

‘Well, how do you typically manage your calls?’ I asked. I won’t bore you with his answer, ‘blah, blah, blah, blah, blah,’ and I discovered, as I listened to his meanderings, that I do, in fact, have a favorite question.

This is such a powerful question that I should be charging you hundreds or thousands of dollars just simply to be reading this column, so convinced I am that your regular use of this question will increase your sales. I run the risk of giving up half my income for the rest of my life by sharing this incredible secret with you. A secret that took me years of research and experience with thousands of sales people to discover.

Sales Thought – Standing Out

In which we discuss strategies to draw attention and attract  prospects and referrals.

During a training session for branch managers and small business bankers, I shifted the focus from typical networking and prospecting to “attraction marketing” – attracting prospects to us rather than stalking and chasing them.

Feeling a little frisky, I asked, “Remember when you were dating? What strategies did you use to attract people to you?” Virtually all eyes in the room went straight to the floor. Silence.

Sales Thought – Magic Words

In which we discuss the importance of referrals rather than the power of magic words to gain audiences with prospects.

In our neck of the woods, Harry Potter movies appear on various cable channels almost as frequently as “storm chaser” programs featuring lunatics who chase or who are chased by tornados.  Having watched both genres a few times, and knowing that in both cases the endings are good and the acting is bad,  I strongly prefer the Potter movies for recreational couch sitting, particularly the first three.

I love the moments when Harry or Ron or their friends are in immediate, ghastly, horrfying danger, blabbering words for a spell,  not quite getting it right, until, just at the last moment, they SAY THE RIGHT WORDS … and… WHAM.. they’re saved.   Strong wizardly power.

As a parent and sales coach, however, I’m NOT crazy about “wizard power” because it creeps into our thinking and undermines our human power.

For example: During one of our recent “Winning at Prospecting” training sessions,  we’d just finished the discussion about “Rule #1: Referrals, Referrals, Referrals” when one of the participants (with the immediate agreement of others in the room) said,

“I just keep thinking that, if I somehow say the right words, I’ll get an appointment.”

Sales Thought – Too Quick To Answer

In which we are reminded that we need to understand the question before we answer.

“Will this engagement address commercial real estate loans?”,  one of the executives in the room asked.

I smiled and gently replied, “No, that’s not our focus this morning.”

Without breaking eye contact with me, he smiled tightly and continued: “Well, the reason I ask is….” and he described his concerns. They were good concerns.

As I was listening, the Little Voice in My Head shouted, “May Day! May Day! Wrong! Wrong! Wrong!”

Why “Wrong?”

Looking for Spoons, or, Take the Blinders Off

… in which we discuss the benefits of asking broader questions before we qualify someone for our products..It’s a small cafeteria. Solid food to the right. Salad to the left. Cashier at the end.
 
Running to an early morning project team meeting down the hall, two of us swept through, grabbing orange juices, bananas, and blueberry yogurts to sustain us. “Spoons,” my partner said. “Right,” I replied, looking left, right, and down. “Spoons.”
 
None in sight. “This is silly,” I thought, looking at counter tops. “They should be here.” Couldn’t see a one.
 
We found cafeteria staff. She pointed down to the counter that had been directly in front of us. I could see them, now that I’d backed up a few paces. Spoons. Full-sized spoons. BLACK spoons.
 
Well, I hadn’t been looking for full-sized BLACK spoons. I’d been looking for small, flimsy, white plastic spoons. I was right on top of the black spoons and I couldn’t see them while I was looking right at them.
 
We have this experience in sales calls, too. We’re moving so quickly and looking so intently for the specific needs we planned to address (white spoons) that we miss other possible opportunities or needs that we could sell or cross sell (black spoons).
 
One strategy to address this tendency is to start with ‘business’ questions rather than ‘product-qualification questions.’
 
Business questions are broad, survey questions. Product qualification questions tend to be very specific.
 
Suppose we’re selling printers and software. The just-looking-for-white-spoons “product qualification” questions would sound something like, “What kind of computers and software are you using” or “What kind of network are you operating” or “How do you currently print proposals?”
 
If we’re bankers, the product qualification just-looking-for-white-spoons questions could include “what checking accounts do you use” or “how do you use lines of credit to finance seasonal working capital?” or “how do you currently collect and process your accounts receivable?”
 
Broader business questions might include, “How has your business been evolving over the last couple of years” or “What sorts of challenges are you facing in supporting your customers” or “How have the changes in the economy affected your business?”
 
Questions like these broaden our vision a bit. We can, at least, see the black spoons or other spoons, whether or not we choose to pick them up.

by Nick Miller of Clarity Advantage