Paradigm is an intellectual perception or view, accepted by an individual or a society as a clear example, model, or pattern of how things work in the world. Therefore, it is important to evaluate paradigm in its definition and concept. The paradigm doctrine changes our attitude and behaviour, which is, otherwise, influenced by our biased opinion. This opinion can be knowingly or unknowingly influencing our mind and heart. How it affects our attitude, in the situations when reality is revealed, is a point to ponder?People from all walks of life react to a situation instantaneously without evaluating the root cause of the scenario. Their decision is, by and large, subjective in nature. At this critical moment, they must pause and realign their sequence of reasoning to take an objective assessment. This is called a paradigm shift. Thus, it makes life smooth and purposeful. Thomas Kuhn was the first US science fiction historian, who used the term paradigm in his 1962 book ‘The Structure of Scientific Revolution’. He says, “Think of a Paradigm Shift as a change from one way of thinking to another. It’s a revolution, a transformation, a sort of metamorphosis. It just does not happen, but rather it is driven by agents of change.”The social, political and religious leaders influence the masses by imposing the dogma of their own perception in an authoritative manner. These leaders fall into three types of categories adopting different modalities. The synopsis of their ideologies is substantiated in the following paragraphs.(a) The logical and reasonable aspect of concept adopted by the leaders who are honest to self and masses. Their aims and objectives are to make masses beneficial and build a society caring for the humanity.(b) The second aspect is based on deception and selfish interest compelling the leaders in misguiding the masses for short gains without any consideration to humanity. Here, the personal gain, at the cost of humanity, takes priority.(c) The third aspect deals with people who are sincere in their approach, yet failed to react and adopt a paradigm shift. This will not only make their perception an authority of own interpretation of the situation, but also create an awful scenario. They lose patience and failed to realign the good sense. They are unknowingly and ignorantly carried away in the wrong direction, thus, making others unhappy.The behaviour or the performance of an individual is the lead line which reflects his or her reactive forces. The reaction is directly proportional to his attitude that transforms into performance when encountered a situation. It is their attitude, which reflects a biased perception with respect to their own thoughts and feelings. The superficial and peripheral scenario has its telltale effects. Hence, people get carried away by camouflaged situation. The situation changes one hundred and eighty degree when realities become crystal clear, thus, making their attitude altered.We individually and collectively should and must adopt a change in our pattern to attain desirable results, which are conducive to human values and ethics. Therefore, the paradigm shift is defined as, “Moving from one thought system to another.” It is the movement, which guides you towards reality, based on truth and sensibility.
A Paradigm Shift
Smythe Adapts to Working from Home
As the world around us continues to adapt to a new sense of normal in light of COVID-19, we at Smythe LLP (Smythe), recently sat down (virtually) with Kendall Hanson from CHEK News to discuss how we’re adapting to working from home and what is means for us as a firm, as well as the communities we live and work in.
Although we may be smack dab in the middle of our busiest time of year, things at Smythe are still business as usual – with a few notable exceptions.
The first, and probably most obvious, is that nearly all our staff have now transitioned to working from home.
“The first week of office closures and having everyone work from home was definitely a week of transition, but I think everyone’s really quickly adapted to it and gotten used to it and a lot of people are really enjoying it,” said Partner, Trevor Topping.
During a time where our offices would normally be a buzz with client visits and meetings, our offices are now closed to the public and a skeleton crew has been put in place to ensure clients are able to safely drop off necessary files and mail is being received and sent out.
To read the full article and to hear what Trevor had to say about Smythe’s new normal, click here.
For more information on our response to COVID-19, or to learn what support is available to you, please visit our COVID-19 Resource Centre, or reach out to your Smythe Partner directly.
Cash Flow Management
Given the current economic uncertainty, effective cash flow management will be critical for the success of many businesses. This will likely involve a combination of:
Managing working capital levels
Managing discretionary expenses
Obtaining additional financing
Working capital management can take the form of:
Implementing Credit Policies
By implementing credit policies with your customers you can speed up the collection process. This could include requiring upfront deposits, reducing the credit terms or offering incentives for early payment. Always ensure you follow-up on overdue accounts.
Utilizing a Just-in-Time Inventory System
Unless it will hurt your ability to sell, don’t carry extra inventory.
Using Credit Terms to your Advantage
Unless they are offering worthwhile incentives, don’t pay your suppliers until it is necessary.
A tool that should be utilized to help with managements’ decision making, is a cash flow forecast. This will help you assess the impact of working capital and expense management decisions, as well as determine whether additional financing will be required.
If you decide that you need to obtain financing (see below), it is likely that the lender will require a forecast as part of the application process.
Obtaining Additional Financing
As part of the economic stimulus package, the Government of Canada is working to ensure businesses have access to traditional financing, from both the government and private lenders.
Among the products being targeted to COVID-19 relief are:
Working Capital Loans
Funds to provide working capital for the operations, and cover general operating expenses, as opposed to capital purchases or expansions. There are currently programs in place where loans can be approved within 48 hours or maybe available without any payments for the first six months. BDC loans of up to $100,000 can be applied for online.
Loan Guarantee for Small and Medium-Sized Enterprises
As part of the Business Credit Availability Program, EDC is partnering with financial institutions to guarantee 80% of new loans or credit requests up to $6.25 million for small and medium-sized enterprises. Financing is meant to be used for operating costs and is available to exporting and non-exporting companies. The idea behind the program is to encourage additional funding from banks as the EDC provides a re-payment guarantee of 80%. This program is now available through your bank or credit union.
Bridge Financing Program
Offered through BDC Capital, this special program may match (with a convertible note) a current financing round being raised through qualified existing and/or new investors made into eligible Canadian start-ups. This program is best suited for high-potential companies that have venture capital investors willing to support them. BDC will then invest alongside these groups. There are separate criteria for both companies and investors who wish to take advantage of this program – for full details, click here.
Term Loan and Lease Payment Relief
Ability to delay payment of principal for up to six months on existing loans.
Increases to Existing Line of Credit
Financial institutions are providing increases to the borrowing limits on existing lines of credit.
Purchase Order Financing
Flexible terms are being offered to ensure existing and future orders can be fulfilled.
Buyer Financing
Export Development Canada is providing buyer financing and direct financing for international sales to ensure Canadian businesses are able to participate in international trade opportunities.
If your business requires cash flow management or additional financing, please contact your Smythe Partner directly as additional reporting may be required. Our team can match your business with the appropriate product and guide you through the process and provide financial information to the lending institutions.
Canada Emergency Business Account (CEBA) Interest-Free Loans
the Government of Canada announced the Canada Emergency Business Account interest-free loans that provide up to $40,000 for small businesses and not-for-profits that have been financially impacted by COVID-19. On December 4, 2020, the program was expanded to offer an additional $20,000 to businesses that continue to be seriously impacted by the pandemic. The loans are available through eligible financial institutions, and businesses must apply through a financial institution where they had an existing relationship. The loans are interest-free, and 25% of the original $40,000 of the balance and 50% of the additional $20,000 of the balance is forgivable if the business repays the loan by the end of 2022. Businesses are required to have had an annual payroll of $20,000 to $1,500,000 or non-deferrable expenses of at least $40,000 in 2019 to qualify.
Businesses have until March 31, 2021, to apply for a loan or the $20,000 expansion. In the case where applicants are waiting for their financial institution to finalize the submission of additional information, they will have until May 7, 2021, to complete the submission.