angel investors: the unsung heroes of the canadian economy

Transcription

PLEASE FORWARD TO:
OWNER
SALES MANAGER
MARKETING DEPT.
HUMAN RESOURCES DEPT.
PURCHASING DEPT.
EXPERT ADVICE
Why do I need to review
my life insurance policy?
LEAH COCHRANE, CERTIFIED FINANCIAL PLANNER | THE CO-OPERATORS
NIAGARA
www.BUSINESSLINKNEWSPAPER.com
VOLUME 9, ISSUE 6, JULY 2011
ANGEL INVESTORS: THE UNSUNG HEROES
OF THE CANADIAN ECONOMY
Why Angel investment is becoming a leading force in today’s economic and business landscape.
PROVIDED BY NIAGARA VENTURE FORUM
T
he term “Angel investor” has been gaining wider prominence and awareness in
the investment community, sparking interest from
levels of government, the media, and in economic
development. Still, with so much press as of late,
questions remain as to who these investors are, and
why Angel investment is becoming a leading force
in today’s economic and business landscape.
Angel investors to put it simply are high net
worth individuals who typically mentor and invest
their personal capital in early stage companies
primed for growth. They are often entrepreneurs
or retired business people who have successfully
founded and/or operated one or more companies.
In Canada alone, Angels invest $2.2-billion a year
complementing the less than $1-billion invested by
Venture Capital. There are over 30 organized Angel
networks across Canada—with the newest being
the Niagara Angel Network—a professionally man-
aged and organized Angel group with over 36 current members. Members pay a nominal membership
fee and meet with other like-minded colleagues to
hear pitches for investment by companies. To be a
member, you must be an accredited investor, meaning, you must satisfy one of the requirements under
Ontario Securities Commission Rule 45-501.
By joining an organized Angel network, investors
share deal flow, best practices, industry knowledge,
executive skills and experience and share in the due
diligence. This helps mitigate risk and attracts greater
investment opportunities. They also have the option
of deal syndication where members of one Angel
group invest with members of another angel group.
This is becoming a popular trend in Angel investing
because it allows investors greater access to quality
deals, regardless of geography. Another benefit of
membership is having investment candidates first
undergo a structured pre-screening process…
PAGE 35
Founding members of The Niagara Venture Forum & Niagara Angel Network at the NIA Tradeshow, March 3, 2011. From left
to right: Terry Kadwell, Doug Frazer, Terry Mactaggart, Tracy Hopkins and Nick DiPietro.
COMMUNITY SPOTLIGHT
SPECIAL FEATURE
The Township of West Lincoln
Business Men In Niagara
This agricultural and commercial powerhouse
is growing with the times.
These hardworking men help make Niagara
a rewarding place to work and live.
PAGE 12
PAGE 17
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CONTENTS 07.11
VOLUME 9, ISSUE 6, JULY 2011
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DIRECTOR OF ADV E RT I S I N G
Julie Shields
CONTRIBUTING W R I T E R S
G. Visca, K. Mwanzia, J. Jones, S. Leslie, S.J. Wegg
S. Putman, T. Crawford, C.J. Calvert, J. Gitomer, B. Hansell
G. Torok, A. Katzman, R. Knabenschuh, J. Storm
J. Chesebrough
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4 STRIVE TO CREATE MOMENTUM
IN LIFE AND BUSINESS
22 FIVE RULES TO BUILDING YOUR
SUCCESSFUL MARKETING SYSTEM
“Without action there are no results, so all the
planning that is non-executed is useless unless
it is applied.”
“Follow good systems in every area of your
business—especially your marketing.”
10 WANT SOME MORE? ALL YOU
HAVE TO DO IS UP-SELL!
“How consistent are you in asking for
more business?”
15 BORDERLESS BOUNDARIES
FOLLOW US O N
2
“Don’t box yourself in and begin to focus on your
problems. Instead, adapt to the change and realize as
business owners we have borderless boundaries.”
THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER
27 THE “STREET SMART REAL
ESTATE APPRAISER”
“How does a typical appraiser obtain a—let’s say
‘Creative Valuation Zealous’ needed for unique
property appraisals?”
35 NATIONAL SMALL BUSINESS
AWARD WINNER
Niagara’s own Creek Shore Farms wins national
small business award from Scotiabank and CFIB.
ALSO INSIDE
5
I.T. MANAGED SERVICES
6
EXPERT ADVICE
9
ACCOMODATION OPTIONS
11 CHAMBER TALK
16 MEDICAL TOURISM
25 BOOK REVIEW
26 NIAGARA SPOTLIGHT
28 THE DIGITAL BUZZ
29 ARTS & CULTURE
32 KATZ KORNER
33 ACT LIKE THE JOB YOU WANT
34 HOW HST CHANGED SMALL BUSINESS
JULY 2011
JULY 2011
3
“Strive not to be a success, but rather to be of value.” – Albert Einstein //////////////////////////////////////////
RED TIP – STRIVE TO
CREATE MOMENTUM IN LIFE
AND BUSINESS
“Without action there are no results, so all the planning that is
non-executed is useless unless it is applied.”
BY GERRY VISCA
I
nnovation and creativity is more than problem solving, it is about continually
maintaining an eye on the end prize. Wayne Gretsky, said it well: “The key to my
success is guessing where the puck was headed and getting there in advance to play
it.” This statement is profound and provides us with the message that greatness requires
proactive thought and action with a clear vision for the future.
So many of us have the ability for greatness, to push our current potential and achieve goals we have
set forward for ourselves. How do you know what you can fail at if you never take the first step? I know
that sounds odd using the word ”fail” instead of succeed. I love the statement by Samuel Becket; “Fail
– Fail – Fail Again Better.” as an illustrative example of uncovering your true potential. Your greatness
is waiting for you. All you need to do is take the first step in your creative journey. Will you fail? Possibly,
but that’s okay since you are focused on growth, the only evidence of life!
The key is to then learn from your actions and improve the strategy and refine your target in order
to turn some of those losses into big wins. So many companies that I work with have an inherent fear
of change. Change is innovation at the root of it. Innovation is problem solving through creativity and
intuition; it’s about guessing where the puck will be before it is there and moving yourself to be there
at the right time.
Without action there are no results, so all the planning that is non-executed is useless unless it is applied.
Gerry Visca is an International speaker, author and creative director at Redchair Branding® Inc. Gerry
can be reached at 905.528.6032, [email protected] or visit www.gerryvisca.com or
www.redchairbranding.com.
4
JULY 2011
I.T. MANAGED SERVICES IS THE CAT’S MEOW
”With all the right tools, processes, experience and the right software, I.T. support costs are reduced due
to increased levels of efficiency.”
BY SCOTT PUTMAN
W
hy has Managed Services so quickly
become a buzz word in the I.T. industry?
Short response is—because it’s cheaper compared
to the other options. Long answer—because it’s
cheaper, and your I.T. systems are looked after by
a team of experts who look after computer systems
day in and day out.
Still not convinced? An “average” small business
has a server running file & print and Exchange, a
number of computers (desktops and laptops), and
some printers and Blackberries.
What are the alternatives available to look after
these systems properly?
One possibility is to give the job to an employee
who has a “knack” for computers. This isn’t always
sufficient, even in a home user environment—so
why would you entrust potentially millions of
dollars worth of data to such a flimsy solution?
Problems experienced in a business and network
environment requires at a minimum training, and
often special certifications. Consider also that the
time your employee spends dealing with computer
issues will inevitably take time away from his regular duties.
Another alternative is to hire full-time, internal
technicians. Studies have shown that an I.T. employee
JULY 2011
can at the most handle up to 40 users. In addition,
internal techs are often hired to look after specialty
applications required to run complex programs.
You may think that, as a computer professional,
he should be able to handle day-to-day computer
problems rather easily. The opposite is often the
case. And what if he is sick or away on vacation
and the network is down? Normal office staffs use
on average five different applications. All these
need support. And the network itself has its own
set of problems. Finally, how much will you pay a
technician to perform all these tasks? ($60K, or
perhaps more?)
To make sure that a company’s information
network is operational requires 24x7 monitoring
and alerts, vendor relations, system administration (password resets, user account creation, etc.),
on-site hardware support, change management,
reporting and source analysis, just to mention a
few. More and more companies look to external
I.T. support not just to fix broken computers—but
to take advantage of all the resources available
through them.
But what does Managed Services really involve?
First of all—the costs are usually arrived at
by multiplying the number of servers, desktops,
laptops, and whatever other devices you want to
include in the plan, with fees charged accordingly.
That’s the money side of it—simple, right?
The biggest benefit to the client organization is
that there is only one point of contact for all I.T.
matters. So—what do the services cover?
At a minimum, all the systems included in the
plan are subject to 24x7 monitoring, which means
that if something happens with the system, an alert
is sent to the support company who can deal with
it almost instantaneously. More often than not, the
issue has been resolved using remote access to the
client’s system, and before the client has even been
aware of a problem existing in the first place. That’s
managed services in a nutshell.
In short, managed service companies act as the
I.T. department for many companies at the same
time. With all the right tools, processes, experience
and the right software, I.T. support costs are reduced
due to increased levels of efficiency.
Scott Putman is the President of I/O Vision. For
more information please call 905.937.7658,
email [email protected], or visit them at 3-23
Nihan Drive, St. Catharines, ON. www.iovision.ca
5
ASK THE EXPERT WANT SAGE ADVICE? YOU’LL GET IT HERE!
FINANCIAL WEALTH EXPERT
WILLS AND ESTATE LAW EXPERT
QUESTION
QUESTION
Why choose Collaborative
Family law?
What is Estate Planning?
ANSWER
Estate planning is difficult to think about, let alone engage in. However,
we all have an estate to pass on, and want our cherished beneficiaries to
receive their inheritance according to our own intentions.
Estate planning is more than preparing a Will. It begins with reviewing
Christopher Kruczynski
your current situation by listing both assets and liabilities. Assets include
Senior Wealth Advisor
your residence, investments and life insurance. Liabilities are your mortgage,
taxes due at death and funeral expenses.
You should also review your Will and powers of attorney, which need to be current and easy to understand for
your wishes to be clear and carried out properly. A Will can become outdated over time, review it every three years to
ensure it conforms to your current situation or, after a major family event.
Consider a power of attorney. If you become mentally or physically incapacitated, your Will does not apply, only
a pre-arranged power of attorney can guarantee someone you trust will be able to act on your behalf in overseeing
your affairs.
Next, determine your goals and objectives for your estate. They could encompass tax planning, the timing of
income to beneficiaries and charitable donations. Speaking with an expert can help develop priorities, and identify
any gaps between your current situation and your ultimate goals.
ANSWER
Dealing with a separation or divorce is difficult. The life you and
your partner built is no longer there. You have to make plans for
your new life while simultaneously trying to resolve issues from
your relationship. This process is made even more difficult when
Graham E. Wilson
there are children involved.
Traditionally, most family law matters were litigated in court. Litigation is a risk to all involved,
as the ultimate decision regarding support, child custody, and property matters are left in the hands
of a judge.
Collaborative law is emerging as a viable alternative to litigation. Rather than placing the
important decisions with a judge, both partners, with the assistance of lawyers, work out an
arrangement that is agreeable to them. This way, the parties have direct control over important issues.
The Collaborative process insulates any children from the negative effects of relationship breakdown,
and it saves the parties significant time and money.
Collaborative law is not suitable for every couple (for example, where one partner is abusive). It is
important that you speak with a lawyer to explore all your options, including whether Collaborative
law is right for your situation.
For guidance through the Estate Planning process and the comfort of knowing that you have prepared for your future,
please feel free to call me.
tel: 905.641.7716
80 King Street, Suite 705, St. Catharines ON
[email protected]
www.mkgscotiamcleod.com
† Based on current tax rules. You must satisfy credit criteria to qualify for the loan. The loan is designed so that the maximum loan plus its interest never
exceeds 50-75% of the accumulated policy cash value.
® Registered trademark of The Bank of Nova Scotia, used by ScotiaMcLeod under license. ScotiaMcLeod is a division of Scotia Capital Inc. Scotia Capital Inc. is
a member of the Canadian Investor Protection Fund. This article is for information purposes only. It is recommended that individuals consult with their Wealth
Advisor before acting on any information contained in this article. ScotiaMcLeod does not offer tax advice, but working with our team of experts we are able
to provide a suite of financial services for clients. The opinions stated are not necessarily those of Scotia Capital Inc. or The Bank of Nova Scotia.
All insurance products are sold through ScotiaMcLeod Financial Services Inc., the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank
Group. When discussing life insurance products, ScotiaMcLeod Investment Executives are acting as Life Underwriters (Financial Security Advisors in Quebec)
representing ScotiaMcLeod Financial Services Inc.
tel: 905.682.6175
501-63 Church St. St. Catharines ON
[email protected]
www.grahamwilsonlaw.com
INSURANCE EXPERT
HUMAN RESOURCE EXPERT
QUESTION
QUESTION
Why do I need to review my
life insurance policy?
Having survived the economic downturn
of the past two years our business is
recovering, but slowly. We are nervous
about hiring until we know this is not just a
short term improvement—any suggestions?
ANSWER
At Cochrane-Lipovsky Insurance, we take a proactive approach
to contact our life insurance clients every two years. When we do,
Leah Cochrane
quite often this is a question we are asked. Since client situations
Certified Financial Planner
can change over time, it is important to ensure all the facets of
the policy are kept up to date. One of the main benefits of a life policy is that it passes straight to the
beneficiary tax free. Therefore the named beneficiary designation of a policy should be reviewed on
a regular basis. For example, if a child is born, we recommend to our clients that they add the new
child as a Contingent Beneficiary on their policy. The amount of coverage that a family requires can
also change over time. For example, if a family moves to a new home it may increase their mortgage
insurance need. Or a change in employment, or the birth of a child can create an increased need for
income replacement. We recommend a Needs Analysis upon each review to ensure the coverage
amount is up to date. Meeting with your life insurance agent on a regular basis can also keep you
apprise of any new products the company may offer. For example, Infinity Term is a new permanent life
insurance policy that the Co-operators introduced on June 1st of this year. This is a great alternative
to “expensive” Whole Life policies. We want to make sure our clients are aware of all of their options,
and have a thorough understanding of what they are paying for to protect their families and business!
If you have a policy that hasn’t been reviewed recently, we would be happy to provide a no obligation
review for you!
Joceline McDonald
ANSWER
Recovering from a recession is the best time to consider a flexible
staffing solution. Paying for people on an as needed basis as business
improves, allows you to add or subtract people to cover the growth periods without committing to full-time
salaries until you’re confident in that growth. Temporary Service companies are an excellent source for just-intime employees that can provide the flexibility that you require through this period. Most reputable firms have
policies that allow you to hire these employees on a full-time basis after a certain period of time. This allows you
to assess skills, dependability and attitudes before having to make a long term commitment to the employee.
Temporary Services Recruiter
Temporary or interim employees are available at all levels—from light industrial to skilled trades, clerical,
administrative, accountants, IT, and executives. Check out the service you are contracting with to determine
what process they use to screen their temporary employees and to ensure that they comply with all relevant
employment legislation. You want to know the candidates have been tested, interviewed and referenced before
being assigned to your workplace; and you should be confident that you are dealing with qualified recruiters.
Is this costly? No. The temporary service is the employer and therefore assumes all the costs associated
with payroll including EI, WSIB, CPP, EHT, vacation pay, etc. So, if you factor in those added costs (roughly
15 – 20%) to your own hourly rate, it can be a very cost effective solution; and of course you pay for staff
only when you need them. The additional bonus is the time you will save not having to post jobs, prescreen,
conduct interviews and check references.
Call to find out how The Burke Group can help you align your people needs with your company’s goals.
tel: 905.935.3100
2 Lakeshore Rd., Unit #7, St. Catharines, ON
[email protected]
www.cooperators.ca
tel: 905.641.3070
50 William St., St. Catharines ON
[email protected]
www.theburkegroup.com
ADVERTORIAL
6
JULY 2011
ASK THE EXPERT WANT SAGE ADVICE? YOU’LL GET IT HERE!
BUSINESS ADVISOR EXPERT
INFORMATION TECHNOLOGY EXPERT
QUESTION
QUESTION
As a business owner, should I
create an “Advisory Board” for
the company?
Why should I use Microsoft
Exchange?
ANSWER
Recent publications say that only 1 in 5 businesses (actually 22%)
maintain an “Advisory Board”! An even lesser prevalence exists in
smaller companies.
Many business owners experience day-to-day struggles in areas such as marketing strategy,
maintaining a reasonable quality of life, meeting weekly cash flow needs, finding and keeping good
people, and so forth. One would think that an “Advisory Board” would be a natural fit. Reasons for this
bewildering lack of appeal include:
• Difficult and expensive to assemble qualified professionals,
• No clear go-forward strategy when dealing with conflicting board advice and personalities,
• Hard to schedule mutually convenient meeting times, and,
• Not a lot of real commitment with limited/no equity participation.
Perhaps these and other reasons explain why “Business Coaching” is a growing alternative to
“Advisory Boards” amongst more successful companies. In addition, some business coaches coordinate
Peer Advisory Groups as a low-cost alternative.
If interested in discovering some practical alternatives to “Advisory Boards” such as PAG’s or oneon-one support, why not talk to an experienced and qualified member of Growth Associates? It may
just what is needed to really succeed!
Verne Milot
ANSWER
Most businesses are using email as their primary communication
tool with customers, colleagues and suppliers. But many of these
Scott Putman
companies stop there, missing out on productivity-boosting
features like shared calendars, contact information and files.
Microsoft Exchange is the world’s most popular business messaging software.
Basically, Exchange (and Exchange Server) is a computer service that stores your company’s email,
calendars, address books and files centrally, so they are available 24x7 and can be shared among your
team. It is the messaging system of choice for most Fortune 500 corporations.
Organizations running Exchange as their email server typically use Microsoft Outlook as their email
“client.” With Exchange you can securely access email remotely—via the Web or a mobile device like
a BlackBerry. You can view colleagues’ up-to-date calendars and schedule meetings, as well as assign
and manage company tasks on central “to do” lists. For most, it is important to be able to not only
manage contact information of employees and customers, but to access their information anytime.
Sharing of files and documents across the team, so everyone’s working from the most current version,
is another feature that has made Exchange invaluable for professional businesses worldwide.
Feel free to contact us about this and other computer related issues.
Visit www.growth-associates.com/contact.html
for a FREE Business Effectiveness Evaluation.
tel: 905.688.2226
184 King St., St. Catharines, ON
[email protected]
www.Growth-Associates.com
tel: 905.937.7658
3-23 Nihan Dr., St. Catharines ON
[email protected]
www.iovision.ca
PROPERTY RESTORATION EXPERT
BENEFITS AND RETIREMENT EXPERT
QUESTION
QUESTION
What are some of the hazards
I should be aware of when
dealing with sewage? PART I
ANSWER
What makes a great
benefits advisor?
ANSWER
Sewage is the most misunderstood and overlooked contaminant
that can enter you house or business. Unfortunately, people don’t
understand the hazards that sewage creates or what contaminants
can be in even “clear” water that comes out of a sewer drain. These bacteria and microorganisms are
particularly dangerous for small children, the elderly and those with compromised immune system or
respiratory and cardio logical problems. You should never attempt to clean or decontaminate contents
or a building if you are not trained in Class 3 Water Mitigation or Professional Sewage Remediation.
Matt Holmwood
Is Sewage from oceans, lakes or rivers clean? This water contains contaminants such as but not
limited to microorganisms, bacteria and pesticides. If not mitigated properly and left trapped inside
walls or under floor coverings, it is only a matter of hours before it becomes a significant health hazard.
Can I use Chlorine bleach to clean or disinfect sewage? Bleach is not a cleaner and not a very
good disinfectant by today’s standards. It’s quickly rendered inactive by sewage or any organic
material. Fungi, bacteria, and microorganisms may contain chemicals or VOC’s (Volatile Organic
Compounds) that can cause an allergic response, even anaphylactic shock in hyper sensitive people.
Affected areas should be cleaned thoroughly with an antibacterial cleaner, followed by appropriate
disinfectant application by a trained professional and dried to previous loss conditions.
tel: 905.688.9224 24hr Emergency Service: 1.905.708.4835
12 Export Avenue, St. Catharines ON
[email protected]
www.miller-restoration.com
Ask one pension and benefits consultant what makes a great advisor and you
will likely be told it’s the ability to hold the line on rate increases. Ask another
and they may to tell you it’s the ability to forecast their clients’ needs. Ask a
Cameron Campbell
third and they will tell you it’s the ability to stay on top of the latest industry
developments.
At BHH you won’t be told anything. That’s because we know a great benefits advisor starts by listening.
One of the reasons we are benefits experts is the fact that we seek to understand your business before making
recommendations about your benefits plan. We find this approach serves our clients better. It’s an old adage but it’s one we
live by—people don’t care what you know until they know that you care.
We’re not some outsider looking to set up a one-size-fits-all plan for your company. When we are your benefits advisor
we are working for you to make sure your benefits plan serves your employees and helps your company thrive.
We are up on the latest trends: We can help you design and implement a workplace wellness program, incorporate onsite
employee health assessment and advise you on medical tourism. We take a strategic approach to benefits programs: we have
developed proprietary tools to optimize you company’s benefits plan. We can ensure your rates are fair: we have the expertise
on staff to analyze your rate structure and plan usage so we can negotiate the best rate possible at renewal time.
Unlike small benefits brokerages, we have the experts on staff to benchmark and analyze your benefits so that we can
make recommendations based on your unique situation. And because we aren’t a large company you aren’t just an account
number to us.
If your benefits advisor isn’t listening to you then you don’t have a great benefits advisor.
With more than 15 years of experience in the benefits industry, Cameron Campbell is Team Leader and Senior
Managing Consultant of BHH Benefits’ Entrepreneurial Solutions Program. BHH is a full service benefits
advisory firm headquartered centrally within the Hamilton-Halton-Niagara peninsula area.
tel: 905.643.1017 toll free: 1.800.514.4944
1040 South Service Rd., Unit 204, Stoney Creek ON
c.campbell@bhhbenefits.com
www.bhhbenefits.com
ADVERTORIAL
JULY 2011
7
ASK THE EXPERT
ADVERTISING AND MARKETING EXPERT
PRINT EXPERT
QUESTION
QUESTION
What do I advertise to create
the highest and fastest ROI?
How can I save money on my
next PRINT order? Or when is
more...really less?
ANSWER
We have discussed in prior months how to develop great,
response-demanding ads. We have discussed the importance of
Adam Shields
colour, the neccessity of a strong attention grabbing headline and
the payoff of the design of the ad. Just last month I wrote about
“making your ad stand out”. I received some great feedback from our readers on the use of colour,
but one email stood out and provided me with a great idea for this month’s advice piece. Tammy from
Grimsby writes—“I understand and BELIEVE that colour increases the readership of my ad. I guess I
struggle with WHAT to put in my ads, WHAT I should advertise? I can make them [my advertisements]
look ‘pretty’ all day, but I need to see a return.”
Advertising should never cost you money. Advertising, when done properly, will always make
you money. Choose carefully WHAT you feature in your print ads. Figure out what product or service
fulfills 2 specific conditions. The product you feature MUST—be your most popular AND make you
the most money per unit sold. If you can 1) figure out what this is and 2)advertise it effectively,
you will create a return on each ad. Once you have figured out what this product or service is, be
proactive with your advertising.
ANSWER
Mike Burtnik
The simplest answer is to order more of what you need before you
need it.
With printing, the higher the quantity ordered the lower your
price will be per unit.
For example, if you normally would order 1,000 business envelopes ask your printer for a price
on 1,500 or 2,000 sure the overall cost of the invoice will be higher but your unit cost drops off
considerably.
Everybody’s business is different and your usages may go in cycles, so to be safe, you should order
enough printed supplies to last six months. This will give you enough time to make any changes
required, without too much waste.
Taking into consideration that your logo and design may be more than one colour your savings
would be even greater when you order all of your stationery items at the same time. The same idea
can be used when ordering business cards for your office. Try to check with all staff members to see
if more than one person needs cards. This would allow the print process to run multiples on a single
sheet—the result will be a lower cost per unit.
At Burtnik Printing Inc. we keep a history of past orders for our clients that allow us to see the past
orders and make suggestions about how our clients can save on their printing expenses.
PRINT. The way a responsible business communicates.
www.printgrowstrees.com
tel: 905.646.9366
13 Secord Dr, Suite #3, St. Catharines ON
[email protected]
tel: 905.682.2458
78 Queenston St., St. Catharines ON
[email protected]
www.burtnikprinting.com
ADVERTORIAL
8
JULY 2011
ACCOMMODATION OPTIONS
FOR POST-SECONDARY
EDUCATION
“Get in touch with a mortgage planning specialist who can help you
decide if one of these options is right for you.”
BY RICHARD KNABENSCHUH
P
ost-secondary tuition can be costly, and that doesn’t include the cost of the
student’s accommodation.
If you have a child who is going to be heading off to college or university, you may
want to consider purchasing a secondary residence or rental residence for your child
to live in while at school.
Here are some facts to consider:
SECONDARY RESIDENCE
RENTAL RESIDENCE
Minimum down payment of 5%
Minimum down payment of 20%
Occupied by family member rent-free with
bedrooms available for other students*
Occupied by family member and renters who all
pay rent
Mortgage interest is not tax-deductible
Earned income
Home improvements are not tax deductible
Mortgage interest is tax deductible
Property must be in good condition and
marketable
Some home improvements are tax deductible
Property must be in good condition and
marketable
*If other students pay rent, the residence is considered student housing. It would also be earned
income for the owner.
You’ll need to have a good credit rating, stable income, positive net worth and the down payment from
your own resources to qualify for a mortgage.
Once your child graduates, you can sell the property. If real estate prices rise, it’s possible the transaction would generate a profit.
If you have a child who will be attending a post-secondary institution within the next couple of years,
talk to your financial security advisor. He or she will put you in touch with a mortgage planning specialist who can help you decide if one of these options is right for you.
Richard Knabenschuh, principal of The Financial Alliance Group (Niagara) Inc., is a financial security
advisor representing Freedom 55 Financial, a division of London Life Insurance Company. He can be
reached at 905.682.7722, or by email at [email protected].
The information provided is based on current laws, regulations and other rules applicable to Canadian
residents. It is accurate to the best of the writer’s knowledge as of the date submitted for publication.
Rules and their interpretation may change, affecting the accuracy of the information. The information
provided is general in nature, and should not be relied upon as a substitute for advice in any specific
situation. For specific situations, advice should be obtained from the appropriate legal, accounting,
tax or other professional advisors.
JULY 2011
9
SALES MOVES WITH JEFFREY GITOMER
WANT SOME MORE? ALL YOU HAVE TO DO IS UP-SELL!
“How consistent are you in asking for more business?”
BY JEFFREY GITOMER
W
alking through Seattle’s
Pike Place Market (where
the inspiration for the book FISH!
came from, and also the location of
the original Starbucks), I couldn’t resist the Queen
Anne cherries. Huge and just picked.
“Give me a half a pound,” I said with positive anticipation of eating them as I walked around. The
young woman running the fruit stand obliged, and
weighed them.
Then she showed me the inside of the paper
sack, 25% full of cherries. “Are you sure that’s
enough?”Startled at her question, I smiled and
said, “Make it a pound!”
She smiled, complied, and showed me the now
half-full bag. Her eyes were locked between my eyes
and the bag. She kept jiggling the bag looking at it,
showing it to me, and looking right at me.
I knew what was coming, and was thinking
about my answer when she asked again, “Are you
sure that’s enough?”
“Make it a pound an a half,” I said as I smiled.
“How about an even two pounds, and a few extra
on the house?” she shot back without taking a
breath between my answer and her offer.
“Deal!” I said.
She put the two pounds in one bag, and my
lagniappe in a separate bag so I could see (and
eat) my “extra.”
I loved the exchange. I love being sold. And I
loved the way she up-sold me. “Are you sure that’s
enough?” Simple, yet powerful. I walked away smiling and eating.
After about ten minutes, I couldn’t stand it anymore. I HAD to go back to the cherry stand and find
out more. I waited for one customer to pay, and then
I anxiously said, “I couldn’t help but ask about your
line ‘Are you sure that’s enough?’ It’s a very powerful
up-line. How often do you ask it to customers?”
“I ask every customer, every time.” WOW!
It was a GREAT line delivered by a shrewd
saleswoman at a hole-in-the wall fruit cart. Low
overhead, high profit, fueled by up-sell. Great
product. Simple to sell. Followed by a second sales
process to sell more.
The up-sell—or should I say the science of the upsell—is all-important as relates to volume and profit.
Especially in these times. Business is down, but not
the cherry business. No one told her the economy is
in the crapper, or she just ignored it.
Think about the emotional appeal that this
woman gave me to entice me to take more money
out of my pocket. Brilliant.
Nice story, huh? Now it gets ugly.
Your sales are down. You still have customers buying
from you, but not as many, and not as much. In these
times especially, after you have completed a sale, you
have to ask yourself these two words: “What else?” And
after you discover what else, you have to figure out the
emotional appeal that will add on to your sale.
Here are the hard questions:
• What percentage of customers buy 100% of
your existing product line?
• What are you asking of your customers AFTER
you have completed the sale?
• How consistent are you in asking for more
business?
• What are your opportunities? Or should I say
LOST or MISSED opportunities?
• What could you change about your presentation
that will begin to show what other great items
your customer might consider?
Answer those, and you’re on your way to creating
up-sell opportunities!
I’m lucky. In 1974, my dad, the late, great Max
Gitomer, taught me the secret of up-selling. He said,
“Son, when their wallet’s open—empty it.” Simple
wisdom is often the most powerful.
“Are you sure that’s enough?” has created a
whole new thought process for me, and I hope it
spurs a few ideas for you.
Besides the fish market, and the cherry stand,
there are a hundred other small businesses at Pike
Place Market. One peach seller was attracting
customers with unusual signs. If you wanna see my
photographs of the signs, go to www.gitomer.com
and enter the word PEACHES in the GitBit box.
Jeffrey Gitomer is the author of The Sales Bible,
Customer Satisfaction is Worthless Customer
Loyalty is Priceless, The Little Red Book of Selling,
The Little Red Book of Sales Answers, The Little
Black Book of Connections, The Little Gold Book
of YES! Attitude, The Little Green Book of Getting
Your Way, The Little Platinum Book of Cha-Ching,
The Little Teal Book of Trust, The Little Book of
Leadership, and Social BOOM! His website,
www.gitomer.com, will lead you to more
information about training and seminars, or you
can email him personally at [email protected].
© 2011 All Rights Reserved—Don’t even think
about reproducing this document without written permission from Jeffrey H. Gitomer and Buy
Gitomer, Inc. • 704.333.1112
• What are your strategies to maximize the
size (dollar amount) of your sales?
• What is your emotional appeal for more or
greater sales?
10
JULY 2011
CHAMBERTALK
St. Catharine – Thorold Chamber of Commerce www.sctchamber.com
THOUGHT-LEADERSHIP
WILL BUILD A STRONGER
NIAGARA
“Niagara is at
an important
turning point and
the time has come
for the region’s
thought-leaders
to emerge…”
BY KITHIO MWANZIA
A
thought-leader is a futurist or person who is recognized for innovative ideas and demonstrates the
confidence to promote or share those ideas as actionable, distilled insights. In business, a thoughtleader builds a company by embracing innovation and has the courage and conviction to follow through
from concept to action. Good examples of international thought-leader companies are RIM and Apple, and
locally, shining examples of thought-leaders are Tom Rankin, president of Rankin Construction and John
Fisher, CEO of Walker Industries.
When it comes to government and community development, thought-leaders can also be catalysts for
positive change. Niagara is at an important turning point and the time has come for the region’s thoughtleaders to emerge and provide the skills that are required to build a stronger, more dynamic community.
Recently, the St. Catharines – Thorold Chamber of Commerce made a presentation to St. Catharines
Council to inform a report on the issue of governance. The Chamber cited its report, Supporting Prosperity
through Effective Governance in Niagara. The report examined areas in which Niagara’s overall governance
model could be modified to facilitate a more coordinated,
efficient and representative public administration. Sur“Thought-leadership
veys of businesses were conducted to form the basis of
the report, in which the overwhelming opinion was that
recognizes challenges
governance needs to be reformed in Niagara. More than
and consequently
70% of businesses surveyed believe that there is a need to
infuses innovation into
re-examine the size and complexity of municipal government and the administration of programs and services at
the process in order to
both orders of local government.
achieve
positive results.”
There are governance models in Ontario that balance
effective representation with efficient governance. There
is much that can be learned from municipalities that have gone through governance reform. Niagara
cannot be afraid to examine the way in which it governs itself, and borrow ideas from successful working
models in Ontario, and using its thought-leadership capacity to find an innovative solution.
Thought-leadership recognizes challenges and consequently infuses innovation into the process in
order to achieve positive results. As a starting point, Niagara has to accept that the status quo in terms
of governance is unsustainable. Niagara has demonstrated its capacity to utilize thought-leadership
to tackle the toughest of issues, which include responding to a transitioning North American economy.
The Chamber will continue working actively to inspire thought-leadership on governance in Niagara.
Kithio Mwanzia is the Director of Policy and Government Relations at the St. Catharines –
Thorold Chamber of Commerce. If you have any input on the subject please forward your
comments to [email protected], and follow regular updates on Chamber advocacy issues at
twitter.com/SCTDPGR.
JULY 2011
11
COMMUNITY SPOTLIGHT
The historic Smithville Train Station
Murgatroyd Parkette, Smithville
THE TOWNSHIP OF WEST LINCOLN
This agricultural and commercial powerhouse is growing with the times.
BY SCOTT LESLIE
The Business Link
C
alling the Township of West Lincoln a peaceful oasis might be taking things a little too
far. But this “Hub of the Niagara Peninsula” has
garnered its fair share of proponents over the years
with its lush rolling farmland, growing residential
suburbs and strong business community.
The Township currently has one of the highest
rates of growth in all of Niagara. Ask many West Lincoln residents and business owners why and they’ll
tell you its location is a definite asset. For example,
West Lincoln offers a convenient location for those
looking to access the Canadian and international
marketplace with its close proximity to the Welland
Canal and major thoroughfares like the QEW. The
Township is also a handy drive from major airports
like the John C. Munro International Airport and Buffalo Niagara International Airport. In terms of rail,
West Lincoln has access to Canadian Pacific as well
as GO Transit service in nearby Grimsby, making it
ideally situated for freight and commuter traffic.
West Lincoln’s pastoral setting provides a welcome refuge from the hustle and bustle of big city
life. But the Township also offers a number of attractive amenities such as the West Lincoln Public
Library, not to mention dozens of churches, community service groups, shopping opportunities, and
sports and recreational facilities. Residents can enjoy
a variety of activities in the Township and surrounding municipalities—whether it’s tourist attractions,
theatres, restaurants or golf courses. (There’s even
a wide range of local Bed & Breakfasts for those
looking for a little weekend getaway.)
Employers looking to locate in West Lincoln will
find West Lincoln an ideal place to do business with
its affordable property and corporate tax rates, and
prime business and industrial sites. The Township
has eight schools—but West Lincoln is also close to
several post-secondary institutions including Brock
University, Niagara College, McMaster University
and Mohawk College which provides a large pool
of talent for companies to draw from.
Birth and Rebirth
The Township of West Lincoln was officially born
12
on January 1, 1970 when the former townships
of South Grimsby, Caistor and Gainsborough
were amalgamated. Previously, these townships
were part of Lincoln County which was established back in 1791 by Lieutenant Governor John
Graves Simcoe. Lincoln County encompassed
the entire Niagara Peninsula until 1856 when
it was sub-divided into Lincoln and Welland
Counties.
In its early days, West Lincoln was largely an
agrarian community. By the late 1800s, however,
the Township entered a new age with the emergence of the railroad. Industries slowly began to
move into the area, and more and more immigrant
families put down roots. It was a time when the
sound of a train whistle and the sight of a locomotive rolling through the countryside were common
occurrences.
One of the most magnificent examples of this
bygone rail era is the Smithville Train Station located at 288 Station Street in Smithville. The structure was built back in 1903 to replace Smithville’s
previous train station which was destroyed by fire.
The Smithville Train Station served the Township
for many decades until 1981 when rail service was
discontinued.
Although the station began to fall into disrepair,
JULY 2011
COMMUNITY SPOTLIGHT: THE TOWNSHIP OF WEST LINCOLN
The Township of West Lincoln Municipal Complex
many members of the West Lincoln community were
determined to save the majestic building from the
wrecking ball and preserve it for future generations.
In 1990, the Township of West Lincoln purchased
the station from Canadian Pacific and moved the
building onto a solid foundation. The Local Architecture Conservation Advisory Committee went on to
designate the station as a historic building, and the
West Lincoln Historical Society stepped forward to
acquire the site from the Township in 1993.
Over the next several years, the station was fullyrestored to its original glory through the help of
many volunteers. The “reborn” structure opened to
the public in 1997. The historic building now houses
the West Lincoln Historical Society and the West
Lincoln Chamber of Commerce.
A Little Something for Everyone
For years, West Lincoln has been famous for its
many long-running agricultural festivals. Perhaps
the biggest one of them all is PoultryFest Niagara.
One of the most popular festivals in the entire
region, this event celebrates Niagara’s $100-million-a-year poultry industry and takes place every
June at the Smithville Fairgrounds. There’s plenty of
fun and excitement for families to enjoy including
all-day concerts, classic car and antique tractor
displays, a craft show and sale, activities for kids,
and plenty of food and refreshments. There are
even special poultry-themed events like chicken
chariot races, an egg drop competition and a wingeating contest.
West Lincoln’s annual Smithville Fall Fair is another “must-see” event. Every Labour Day weekend,
more than 10,000 visitors flood into Smithville from
across Canada and the U.S. to take in the agricultural sights and attractions. This includes an arts and
crafts show, livestock contests, bake sales, photography exhibits, demolition derbies, midway rides,
and a petting zoo.
The Township has all kinds of festivals and
events. But there are plenty of outdoor activities
for families to enjoy in West Lincoln, whether
it’s camping, fishing, boating or a leisurely bike
ride along the Township’s many country roads
and trails. Nearby Twenty Mile Creek offers
many opportunities for canoeing and kayaking.
JULY 2011
Niagara Peninsula Energy Inc., Smithville office
There’s also an abundance of parks for the sports
or outdoors enthusiast to explore including the
Wellandport Community Park and the Smithville
Leisureplex Park.
Taking Care of Business
In recent years, West Lincoln has become a popular
community to live in due to its short commute to
employers in places like Grimsby, St. Catharines and
Hamilton. But the Township has also become an
attractive place for business with approximately
1,200 companies established in the area.
Historically, West Lincoln has been well-known
for its strong agricultural base. The Township boasts
close to 300 farms with a broad range of specialties including dairy, corn, poultry, soybean, wheat
and maple syrup, as well as ostrich and emu products. There are a number of greenhouse operations
that supply plants and vegetables to the retail and
wholesale market.
Although farms dominate the area, the Township’s
business community covers a diverse range of industries and trades. These include everything from Sicard
RV (RV dealership), Premier Express Limited (trucking), and Radex North America Corporation (non-clay
refractory) to V & R Recycling Hose & Hydraulics (recycling), Niagara Region Wind Corporation and NPEI
Niagara Peninsula Energy Inc. (utility).
McIntyre Electric (electrician) and John W. Shipton (barrister and solicitor).
Smithville is the largest community in West
Lincoln and home to many of the Township’s businesses and retail outlets. Many successful operations line its streets including Foodland, RBC Royal
Bank, CIBC, and Niagara Grain and Feed (1984) Ltd.
Smithville is also home to various business professionals like doctors, real estate agents and financial
advisors. The community’s largest shopping centre
is The Village Square Mall. Located on the corner of
Industrial Park Road and Regional Road 20, it boasts
several major stores and franchises including Giant
Tiger, Subway, Home Hardware, Tim Hortons, The
Beer Store and Gino’s Pizza.
West Lincoln has gone to great lengths to improve its community in the past few years. In
2009 for instance, the Township launched the
Downtown Smithville Community Improvement
Township of West Lincoln
318 Canborough St., P.O. Box 400, Smithville ON
Ph: 905.957.3346 Fax: 905.957.3219
www.westlincoln.ca
Plan (CIP). Funded by the Federation of Canadian
Municipalities, the CIP is designed to enhance
Smithville’s downtown core by revitalizing neglected buildings, generating more employment
opportunities and creating a more attractive
downtown experience. (The CIP offers various
incentives such as grants and loans to encourage more downtown revitalization projects.)
The Township also recognizes the importance
of refurbishing underutilized properties—and is
currently preparing a Brownfield CIP to stimulate
brownfield redevelopment.
Like many municipalities, the Township of West
Lincoln is always looking to grow and improve with
the times. But combine its growing business community and world-class amenities with a touch of
the countryside, and you already have an ideal place
to live, work and prosper.
13
COMMUNITY SPOTLIGHT: THE TOWNSHIP OF WEST LINCOLN
14
JULY 2011
“One of the Internet’s strengths is its ability to help consumers find the right needle in a digital haystack of data.” – Jared Sandberg ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
BORDERLESS BOUNDARIES
“Don’t box yourself in and begin to focus on your problems. Instead, adapt to the change and realize as business owners we have borderless boundaries.”
The bottom line is that even during changing times
people will still have the same needs and wants as
they had during stronger economic times. They will still
spend money when they get it although they will be
more cautious. Therefore, you have to tailor your methods. Don’t box yourself in and begin to focus on your
problems. Instead, adapt to the change and realize as
business owners we have borderless boundaries.
BY JOE JONES
O
ver the last few months I have had the opportunity to talk with a number of local business owners, discussing everything including politics,
weather, and culture. From community to community
surfaced one major overlaying topic—discouragement. As I continued approaching new business owners, I began to see the same looks of worry, frustration
and a desire for something to change on the faces of
each owner. I felt like I was almost able to pick out
these individuals from a crowd of people.
As business owners, we often focus so much on
our problems that it almost becomes impossible to
see around that problem for a solution. We then
tend to repeat the same strategies and methods of
operation because they have worked in the past,
hoping they will work again. At this point we then
become frustrated and worry takes over because we
can’t understand what the problem really is and we
have no clue how to change it.
Hearing these business owners talk and vent frustrations, I began asking questions in return. I started
off by stating “it’s not that you’re doing something
wrong, but merely our world is changing.” Borders
are becoming tighter for travel, dollar values are
shifting and crises all over the world are changing
the way we do business. I asked one business owner
who owns a unique retail store in Niagara-on-theLake if he was selling his products online. He stated
JULY 2011
For more information on how we can help your
business adapt to the changing times and enhance
your online presence, please contact Joe Jones
of Symetric Productions Inc. at [email protected] or
905.984.2170 ext. 222. If you are interested in one
of our upcoming webinars, contact us at
[email protected].
to me in return that he has a website but he does
not sell his products online. So then I asked this
question in return, “if your customer base is changing, and they can’t afford to travel then how else do
you suppose they will acquire your products?” He
didn’t have an answer for me; it seemed the simple
question was the answer to his problems. Business
is changing and we can’t expect to repeat the same
methods and achieve the same results.
We need to start thinking globally. Products are
shipped all over the world today. Most likely the
products or materials near you have crossed multiple boarders before reaching you. We can’t have
a mindset that that consumers won’t look on the
internet for us, or buy from our websites. In hard times
they are looking for the best possible value for your
product. We have had requests recently from as far
as Hong Kong. As business owners we take pride in
our uniqueness, in the elements of what makes us
different from our competition. This is now time for us
to showcase those unique qualities that define us.
Recently, we too have restructured how we have
been conducting our marketing and awareness, using more Twitter, Facebook, Linkedin than we have
ever done in the past. Surprisingly it has been very
successful. This was not a frustrating experience; it
actually became very comforting and rewarding. In
the first 25 minutes of our restructure I had my first
lead. It would have taken me far longer using cold
calling or networking to receive a qualified lead.
15
MEDICAL TOURISM:
WHAT YOU NEED TO KNOW
BEFORE YOU GO
“Medical tourism, leaving the country for faster or less expensive
medical treatment, is becoming more common.”
BY BRIAN HANSELL
A
ccording to a soon-to-be
released report by Deloitte,
60% of Canadians would be willing to leave the country for medical
care if it was covered by insurance. Medical tourism
is an estimated $60-billion dollar industry that has
blossomed in response to long waiting times for
medical services in Canada and lower prices for surgeries in developing countries. Understanding the
costs and the benefits involved will transform potential medical tourists into informed consumers.
Not a new phenomenon
Medical tourism is not new. In ancient times the
sick traveled to the temples of Asclepius, the Greek
god of medicine. Today those who can afford it
travel to places where they can get care cheaper
or faster. Most of Canada’s medical tourists head to
the United States, taking advantage of our strong
dollar and prices reduced by the recession.
For those looking further afield, the quality of
care in the developing world is increasingly meeting
our standards. More than 60 hospitals in developing countries are accredited by the Joint Commission International. As well, an increasing number of
physicians, many of whom have trained in western
medical schools, are opting to stay home rather than
try to become certified in Canada.
The time savings can be substantial. The current
minimum wait time for abdominal wall hernia surgery in Ontario is 46 days. Nine out of 10 patients
receive the surgery within 130 days. For $3,800
(U.S.) you can get it done in Costa Rica as soon as
you can get there.
Do you really need to travel for treatment?
Dr. Ray Rupert, the founder and president of Rupert
Case Management (www.rupertcasemanagement.com),
advises caution before booking a medical excursion. “You have to be careful when buying foreign medical treatment.” he says. “Five thousand
dollars for a knee replacement may sound good,
16
but if you develop complications your costs can
escalate.”
He has surprised numerous clients by getting
them into Canadian hospitals with top surgeons,
oftentimes in a matter of days or weeks instead
of months. He has even changed the course of
treatment for some patients. A case in point:
one of his patients was ready to travel outside
Canada for what would be his fourth back
operation. One doctor had examined him and
recommended spinal decompression surgery. A
second recommended decompression and the
fusion of several vertebrae. Dr. Rupert referred
him to an expert spinal surgeon who determined
the patient’s back pain was caused by his hip.
Instead of spending $40,000 in the United States
for surgery he didn’t need, the client had hip
replacement surgery in Canada.
Is it right for you?
Medical tourism has the potential to speed up access to care for Canadians awaiting treatment. But
it isn’t a panacea. If you are considering traveling outside Canada, get a second opinion before
making a decision. As Dr. Ray Rupert cautions,
patients can access information but they are not
the best judge of the medical treatment they
need. You may discover that the care you need
is available in Canada much more quickly than
you originally believed.
After looking at all the facts, if travelling abroad
for care is the best option then pack your bags.
Now more than ever the world is your hospital.
The full version of our white paper, Medical Tourism:
the risks and rewards, is at www.bhhbenefits.com.
Brian Hansell is a Partner with BHH Benefits in
Stoney Creek. Brian is Team Leader and Strategist of BHH Benefits’ Integrated Benefits Strategy
team. BHH is a full service benefits advisory firm
headquartered centrally within the Hamilton-Halton-Niagara peninsula area.
JULY 2011
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17
BUSINESS MEN IN NIAGARA
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21
FIVE RULES TO BUILDING YOUR SUCCESSFUL
MARKETING SYSTEM
BY GEORGE TOROK
A
s a marketing expert I am often asked,
“What is the most important element
in a successful marketing program?”
My answer is, “Follow a good marketing
system.”
My research and experience includes interviews with over 450 business leaders, my
consulting work, travel through 35 countries,
market research and my experience from building my own business. I have noticed that following a system is critical to success in life and
any field of business—especially marketing.
Too many people fail when they try to run
their life, their business or their marketing by
the seat of their pants. They make the mistake
of believing that luck, talent and flitting about
will pull them through.
What a mistake and what a shame. They
fail quickly—especially in an unpredictable
environment. Sometimes you get lucky but
luck can and does change quickly. Counting
on luck is a disastrous marketing strategy.
Follow good systems in every area of your
business—especially your marketing.
When you are ready to witness the power
of systems first hand—visit Las Vegas. It is a
city that is built on systems. The hotels and casinos follow systems with a robotic obedience.
First they designed powerful systems and then
they follow them. Walk through the casinos
22
and watch how they do things. They follow
terrific systems. And they make money.
If you want to make money like the Las
Vegas casinos apply these five rules in your
marketing systems.
The fundamentals for a good system are
the same in any field.
Rules to a Successful (Marketing) System:
1. A system is a process. It is the means
to the end. It is not the goal. Be clear on the
purpose of your system. That will keep you
focused and motivated. When the system is
not working—change it.
2. A system is built on a key principle or
set of principles. These are fundamental
truths that are transferrable across industries.
The principle answers the question “Why?”
3. A system is a set of habits and routines.
Almost like a series of logic statements; if this
condition exists then do that. A system is not
dependent on how you feel. That’s why you
get consistency.
4. A system must be persistent and consistent. This is closely related to the previous
point. Don’t expect 100% success. The system
works because of the numbers. You win some
and you lose some. The better that you apply
your system the more you will win.
5. Measure your results. Systems are created imperfect. Record your results, analyze
them and adjust your system to produce better
results. That’s the way pilots fly planes. They set
a course, see how they are doing and adjust
the controls to stay on course.
Where do you want to improve your business? Create and follow a system to achieve your goals.
Follow these five rules and you will build
good systems.
Build your marketing systems by indentifying
important marketing principles. Then create and
follow a process based on that principle. If the
principle is sound then build the process and
follow it religiously.
Remember that following an imperfect system is better than having no system. Building
your business and marketing systems will lead
you to more success.
© George Torok wrote the book on marketing systems—Secrets of Power Marketing.
It is the first guide to personal marketing
for the non-marketer. Get your free copy of
“50 Power Marketing Ideas” at
www.PowerMarketing.ca. Arrange for
a keynote speech, marketing briefing or
media interview by calling 905.335.1997 or
visiting www.Torok.com.
JULY 2011
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JULY 2011
National Survey
on Canadian Health
BOOK REVIEW | PERFORMING UNDER PRESSURE | BY DR. SAUL L. MILLER | JOHN WILEY & SONS CANADA LTD.
PERFORMING UNDER PRESSURE
Ad Hoc Recherche conducted this web survey on
behalf of Desjardins Financial Security from March 18
to 23, 2010. In total, 1769 interviews were conducted
with a sample of Canadian workers.
”We will never get rid of pressure and stress, so let’s learn from this book and from others on
how to live a happy life in this pressure-packed world.”
BY JOHN STORM
here was a time when we saw sports and business as separate.
Yet today they have merged into powerful economic players
and, with that power, comes staggering pressure to succeed. Pressure
has skyrocketed in recent years as the economy has wobbled, and
global uncertainty continues to hurt investments. Dr. Miller has spent
several years working with high achieves in sports and business,
including Sony, Canada Life, Manulife, Telus, the Vancouver Canucks
and Labatts. He carefully shows that pressure in our business and
personal lives has two parts: the stress I put on myself and the stress
created by people outside of my circle of control. He shows how to
use power thoughts and imagery to improve attitude, how to use
physical exercises to help, and how to leverage pressure and stress
into wins. We will never get rid of pressure and stress, so let’s learn
from this book and from others on how to live a happy life in this
pressure-packed world.
John Storm is director of Oxford Learning at Ridley Heights Plaza
in St. Catharines. He is also on the executive of the Niagara
Workforce Planning Board, the review team of the Ontario Trillium
Foundation and on the council of TVOntario. John hosts his own
show on TVCogeco. Taking Niagara By Storm airs Mondays at 6
p.m., Wednesdays at 6:30 p.m. and Sundays at 1:30 p.m. You can
email John at [email protected].
JULY 2011
For more information please visit www.desjardins.com/en/a_propos/salle_presse/la_une/communiques/2010090801.jsp
T
74%
75%
76%
32%
36%
19%
31%
26%
88%
Passionate about their work.
Loved their co-workers.
Generally satisfied with their jobs.
Felt that their employer helped
better manage their stress at work.
Their employers needed to provide
better recognition.
Provide employees with better
work tools.
Improve the work environment.
Improve working conditions overall.
Of employers felt that they supported
their employees’ work-life balance.
25
NIAGARA SPOTLIGHT
BUSINESS EDUCATION
COUNCIL OF NIAGARA
Non-profit corporation offers a range of initiatives including
relocated Employment Services office in downtown St. Catharines.
BY SCOTT LESLIE
The Business Link
T
he BEC will soon reach a milestone of 25 years. The BEC team has been quietly turning their entrepreneurial spirit into a history of success for thousands of Niagara residents and organizations.
The Business Education Council of Niagara (BEC) is a non-profit corporation that promotes alliances
between Niagara’s education, industry, labour and community organizations. Through the BEC’s mandate, they develop education and employment opportunities, support economic development, and help
encourage the personal and professional growth of people in the Niagara Region.
“We’re the largest BEC in North America,” says Ted Palmer, the executive director of the BEC. “We’ve
been used as a model for BECs across Ontario so we’re recognized as a real leader in the industry.”
One of the prime focuses of the BEC is providing employment services. Whether you’re having difficulty finding a job or thinking about a new career—or if you’re over 55 and wanting to re-enter the
workforce—the BEC’s Employment Services is ready to help. Newly relocated on the ground floor at 43
Church Street in St. Catharines, the BEC’s Employment Services offers an array of services and programs
aimed at helping Niagara residents to reach their employment goals.
Those looking to work more independently on their job search can access the BEC’s Resource and
Information Centre. The centre offers computer and Internet service for job searching, and information
on community agencies.
Employers can also benefit from BEC Employment services when looking to hire.
The BEC’s Labour Force Development division has launched several initiatives including
apprenticesearch.com—a website that provides detailed information on local apprenticeship opportunities for new job seekers. The BEC also coordinates a local website at www.employerregistry.ca that
is offered through the provincial Passport to Prosperity Campaign. This website acts as a single point of
contact for businesses to connect with elementary and secondary students via workplace by providing
learning opportunities. This ranges from one hour career talks to full semester cooperative education.
The BEC is focused on two additional initiatives. The Niagara Best Start Network is a strategic umbrella
group focused on planning and advocating for children under the age of six, ensuring that every child
will reach optimal potential. There’s also the Niagara Prosperity Initiative which is intended to increase
prosperity among residents of the Niagara Region with emphasis on those who reside in targeted
neighbourhoods and communities. For both of these initiatives, the BEC acts as the secretariat working
to bring together stakeholders to enhance partnership and collaboration.
“We believe that enhancing opportunities for personal growth has to take place at every level of the
people development continuum,” Ted explains. “It doesn’t matter whether that person is six years old
or just entering the workforce.”
And with BEC’s proven track record for helping the people of Niagara, the future can only look brighter.
For further information regarding The Business Education Council of Niagara, please call
905.684.7200 ext. 1200 or visit www.becon.org.
26
JULY 2011
“The smallest patch of green to arrest the monotony of asphalt and concrete is as important to the value of real estate as streets, sewers and convenient shopping.” – James Felt /////////////////////////////////////////////////////////////////
THE “STREET SMART REAL ESTATE APPRAISER”
“How does a typical appraiser obtain a—let’s say ‘Creative Valuation Zealous’ needed for unique property appraisals?”
put forth that morning, one of the simplest ideas
was how he would sit outside of a property he was
considering as an investment for hours on end...
just patiently waiting for the property to “talk to
him”...almost as an engineer looks at a plan for a
solution to a problem. Fundamentally, this “campout” strategy is an excellent valuation tool. I often
find patience is the key to commercial valuation of a
development property. Most appraisers rush though
the inspection process of an appraisal...hurrying to
the next property; when a “Street Smart Appraiser”
should spend extra time at a property and possibly
go back again and again to ensure that the property
“talks to him” about its value.
Look for my next article to reveal valuation
tricks of Timothy Salisbury of Royal LePage, a real
estate broker with over 23 years of sales experience and consistently, one of the top performers
in the country.
BY TODD CRAWFORD
I
have always viewed the valuation of real estate as an “Art and a Science,” which properties are more art and less science is often hard to
determine. Typically, properties that have ample
comparable data don’t require a creative view to
determine a value, whereas unique properties with
almost no sales data or similar comparison often
involve a large degree of subjectivity and creativity.
How does a typical appraiser obtain a—let’s say
“Creative Valuation Zealous” needed for unique
property appraisals?
I think a real estate developer can train an appraiser, helping him understand the creative side to
the valuation of real estate development parcels. By
definition Real Estate Development is a multifaceted
business, encompassing activities that range from
the renovation and re-lease of existing buildings to
the purchase of raw land and the sale of improved
parcels to others. As a real estate appraiser what
does this mean to me? A developer that buys raw
land at price X dollars and then adds value inputs
at Y dollars, should have the equation (X + Y = $$)
added together or approximately together. There
it is...an expert real estate developer creates the
value and should know his valuation. I should talk
to real estate developers and get their “trade se-
crets.” The mission—become a “STREET SMART
APPRAISER!”
A real estate developer valuation trick I give you
is “CAMP-OUT!”
Rainer Hummel taught me this appraisal “trade
secret.” Rainer is the owner of Hummel Properties
Inc., which operates and develops residential and
commercial properties in Ontario.
I have had the pleasure of working with Rainer
several times over the last few years. On our most
recent assignment I pulled him aside and asked for
his valuation views. Of the many great ideas he
Please email your “Street Smart Real Estate Valuation” advice to [email protected]
and I may publish it in my next article.
Todd Crawford is a Certified AACI Appraiser, broker, consultant, investor, property manager and
business partner with DTZ Barnicke, a world-wide
real estate firm.
Grand Opening of the Clarion
Hotel & Conference Centre
From left to right: MPP Kim Craitor, Mayor Doug Martin, Jonathon George and Zula Nurmohamed
of Clarion Hotel and Conference Centre.
PRESS RELEASE
O
n June 23rd 2011, Fort Erie Hospitality Inc. held a special grand opening of their newly re-branded
Clarion Hotel & Conference Centre on 1485 Garrison Road in Fort Erie. The event was attended by
several local dignitaries and members of the business community as well as owners, Clarion employees
and representatives from Choice Hotels Canada—the hotel’s chain.
This newly branded hotel features an indoor heated pool, hot tub and sauna, as well as a convention
centre, a business centre, meeting rooms, wireless internet, a fitness room and a games room.
Choice Hotels Canada is the nation’s largest hotel franchisor with 300 privately-run properties currently
open and under development. Their brands include Comfort, Comfort Suites, Quality, Sleep Inn, Clarion,
Econo Lodge and Rodeway Inn.
JULY 2011
27
A frequently asked question of nGen is, “What’s new?”
The answer lately is the launch of OARN—The Ontario Augmented Reality Network.
The next question is invariably, “What?”
Augmented Reality (“AR”) is
a new area of technological
advancement that is catching
mass market interest quickly.
AR has some similarities to virtual reality but
some significant distinctions. While virtual reality immerses the user in an alternative environment, augmented reality enhances—or
augments—the existing environment being
experienced by the user by superimposing information on top of reality.
There are many diverse and intriguing applications for AR. Commercial applications are currently in use by Lego, Lockheed Martin and BMW.
XMG Studio, a specialized gaming company right
here in Ontario, has developed entertainment
applications, such as the video game Pandemica.
The iPhone game Pandemica was chosen as the
winner in the AR category of the Best App Ever
Awards in 2010. Pandemica is a first person 3-D
shooter that puts the gamer into the action by
superimposing enemy targets onto the screen of
a smart-phone while displaying the player’s own
surroundings as captured by the in-phone camera in real-time. The player can imagine that the
organisms, invisible to naked eye, are revealed
through the smart-phone, and that he or she
must eradicate them or perish!
Lego has put its applications more in the
hands of the consumer, with in-store promotional kiosks to drive product sales of this classic
and decidedly low-tech product using cutting
28
“…augmented reality enhances—or augments—the existing environment being experienced
by the user by superimposing information on top of reality.”
edge technology. A child need only hold up the
Lego box and the QR code will activate the AR
feature, showing a three dimensional rendering
of the completed Lego kit. You can imagine the
delight and excitement this would illicit from
a child, and the subsequent sleeve-pulling and
pleading for this newly ‘must have’ toy.
In the case of BMW, a combination of hardware
and software has been developed to supplement
the expertise and skills of a BMW service technician. In the future, by donning a pair of special
glasses connected to a custom server, the service
staff will need only run a diagnostic and look at
the engine of the vehicle being serviced to see
step by step instructions—including highlighted
engine parts—to ensure the repair is completed
accurately and efficiently.
One of the most exciting aspects of AR is
that it is in its infancy, lacking a ground zero
and awaiting leadership to emerge. Ontario is
well positioned to take hold of the reins, and
establish itself as the ‘Silicon Valley’ of AR. OARN
seeks to do just that through a collaboration of
universities, private-sector developers, cultural
agencies, trade associations, local government
and business generators.
Kevin Kee, Project Director of OARN is a leading expert in AR. Kevin brings his experience
as the Canada Research Chair in Humanities
Computing and Associate Professor at the Centre for Digital Humanities at Brock University.
Kevin has partnered with nGen in the past with
the “1812: Interactive Niagara” game. We are
delighted to have the opportunity to continue
working together towards our shared goal of
building an interactive digital media creative
cluster in the region.
By creating a forum for the sharing of ideas,
providing training and guidance, and resources
for research, Ontario can become the epicentre
of AR in North America and the world. We invite
you to join us in this lofty mission.
nGen is committed to jump-starting interactive digital media in Niagara by bringing together
key partners in industry, economic development
and post-secondary education. On behalf of the
nGen team, I welcome OARN to our offices. For
more information on OARN, please visit them
on the web at www.oarn.net or contact them
via email at [email protected].
Jeff Chesebrough
Chief Executive Officer, nGen
www.ngen-niagara.com
JULY 2011
ARTS & CULTURE
CANADA 3.0: THE VALUE
AND DANGER OF EXISTING
ONLINE
Digital, universal self-expression has many challenges and
opportunities for business and the arts.
BY S. JAMES WEGG
F
or centuries, creativity has driven artistic expression and commercial bottom lines. For many artists,
the value of their work is seldom realized or appreciated during their lifetimes. For corporate
enterprises to succeed (largely measured by financial returns), finding the “next best thing” is driven
by profit and shareholder value.
How will both worlds be affected by the ongoing digital revolution?
At the early May think tank in Stratford, those problems were front and centre for two days.
To begin her remarks, global marketing expert Soniya Monga reviewed the evolution of the Internet.
“Web 1.0 consisted of one-way e-mail and news to go; Web 2.0 [features] social media and search; Web
3.0 will [zero in on] connecting with people you should know and building a network with purpose.”
More and more, it seems, we are defining ourselves and sharing interests, ideas and “creations” digitally
to the point that our identity is at risk of becoming as digitized as the latest YouTube viral sensation.
Taking a much different perspective was anthropologist Dr. Michael Wesch. Over many years, he lived
amongst a tribe of indigenous citizens in a remote section of Papua New Guinea. Being isolated, having
no electricity or media of any kind allowed the inhabitants to shape their own identity, using their own
language customs, mores and conflict resolution tools. That all changed when the government insisted
on conducting a census, which led to “straight, neat villages to match the census book.” None of the
happily isolated inhabitants had names but were forced to invent them to suit another society’s desire
for order and progress. Observing this transformation, Wesch began realizing just how “mediated” he
was in Kansas State University.
Teaching class sizes in the hundreds, he began to understand why so many young minds responded
to the anonymity of bulk learning by seeking their own identities on the Internet and lining up by the
thousands to become the next American Idol: “You have to be on TV to be significant.”
His description of the evolution of the word “whatever” since the late ‘50s spoke volumes. “That’s
what I meant,” “I don’t care,” “I’ll do what I want,” through to a present-day note of despair. (“What
if I’m not the next American Idol?”) Whatever…
It’s important for business owners and arts/creators/producers to understand the needs, wants and
desires of the army of Tweeters, Facebookers and their followers. In an era when anyone can be a
filmmaker and have their work shown to millions in just seconds, how can those souls be convinced
to buy when downloadable free or online concerts and movies are becoming cheaper by the dozen?
(During the media and entertainment session, Netflix was referred to as a four-letter word that wasn’t
contributing a nickel to the development of Canadian content.) But in a world of (according to Google)
“database of intentions where borders are replaced by connections,” how is distribution going to be
effectively controlled?
With all of the chatter about identity, online or off, the elephant in the room was the potential for
breaches of security. Jennifer Stoddart, Canada’s Privacy Commissioner didn’t mince words. ”Who do you
trust [when dealing with] privacy versus profits [and the desire of all manner of enterprises] to monetize
personal information?” she asked aloud. What is “meaningful consent” with the real threat of hackers
scoring personal information. (Er, hello there Sony, Conservative Party of Canada, etc.)
The answer was equally direct: “It’s time for fines—it’s the only way of getting their attention,”
she warned.
Whatever your business, are you ready for the next wave of rules and regulations? To help prepare,
a Self-Assessment for Organizations tool has just been launched. Simply search for Canadian Privacy
Commission in your favourite browser and discover your own level of risk or preparedness.
Bringing everything together was Dr. Ian Wilson. The Executive Director of the Stratford Institute
outlined the importance of “The Arts and Digital” succinctly: “At minimum we need to ensure that in
the new digital world we do not simply recreate our traditional institutions but encourage cooperation,
interactivity and a holistic understanding of cultural experience.”
With Niagara’s enhanced cultural tourism initiatives well under way, there’s never been a better time
to heed Wilson’s well-thought-out advice.
INTERNET USAGE STATISTICS
IN CANADA
WHO’S ONLINE?
97% of households with incomes above $87,000 had access to the internet.
54% of households with incomes under $30,000 had access.
80% of all Canadian households had Internet access in 2010.
Top 3: 84% British Columbia 83% Alberta, and 81% Ontario.
93% of households with three or more members had internet.
58% of single-person homes had internet.
– Statistics Canada
GET CONNECTED!
For business news, tips, trends, profiles and
more please check out www.BusinessLinkNewspaper.com.
For health, wellness and safety information please visit www.HWSmag.com.
You can also follow The Business Link and HWS Magazine on Twitter,
Facebook and Linkedin.
JOIN IN!
S. James Wegg is managing editor of James Wegg Review (JWR). The popular online Ezine has over
1,000 articles related to fine arts and film including reviews, previews, interviews and commentaries. Further information can be found at www.jamesweggreview.org. He can also be reached at
905.938.2850 or [email protected].
JULY 2011
29
30
JULY 2011
JULY 2011
31
KATZ KORNER
JUNE 2011
BY ARCHIE KATZMAN
Tim Hortons Executive Chairman
Paul House is stepping in again as
Interim President & CEO—good luck
Paul! Thank you to everyone who attended our Mother’s Day Luncheon—the Club
was bustling & it was fantastic to see so many
smiling faces. Congrats to Wilf Wallace (Royal
LePage) on another successful Texas Hold-em
Poker Tournament to support the Royal LePage
Shelter Foundation. The Club’s Main Dining Room
was transformed into the perfect venue for this
fun, casual evening...hope you stay in longer at
the next one Wilf! Congratulations to Andrea
Kriluck who has retired from the St. Catharines
Standard after serving as Managing Editor...many
thanks for choosing the Club for your farewell
party! Marilyn Bodogh & Neil Dixon are thrilled
to announce the marriage of son Greg to Mary...
it was a pleasure having your rehearsal reception
right here at the Club! Barb & Tim (Niagara Glass)
Snell are also thrilled to announce the marriage
of daughter Ashley to Eric...we wish the best of
32
THE CLUB WOULD LIKE TO
PROPOSE THE FOLLOWING
NEW MEMBERS:
Sheyna Mines
Sales Representative
P. Mines Custom Services
luck to these fine couples! It’s Happy 50th Birthday to Chris Rupp (RBC Royal Bank)—his buddies celebrated this momentous milestone with
a get-together in Club 77...make it a great year
Ruppster! Wishing Jeff Richardson all the best as
his family recovers from the loss of their home
to a fire. Great to hear that Adam Shields (The
Business Link Niagara) is on the mend after being
struck while cycling by a hit-and-run vehicle...
we all hope that you have a speedy & full recovery Adam! Sandra Sabo (St. Catharines General
Hospital Foundation) had many folks on their
toes last month—the Run for the General & the
Spin for the General raised funds for a new defibrillator...congrats to all participants! This year’s
Rankin Cancer Run had 8,200 people walking,
jogging & running to raise over $600,000 for
cancer care in Niagara...unbelievable! Kudos to
Karen Maziar (KGR Marketing Group) who had
added to her credentials: Practitioner of Hypnotherapy with the combining of the NLP Practitioner Neuro Linguistic Programming...now that you
have more time, it’s nice to see you spending it at
the Club! Many thanks to Mike Thomson (Fran-
Gary Possler
President
Peninsula Custom Brokers
Ralph Roselli
Sales Representative
DTZ Barnicke Niagara
YES IT’S TRUE, THEY ALL JOINED
THE CLUB BECAUSE THEY HEARD
“IT’S THE PLACE TO BE!”
chise/Business Consultant) for generously donating the office supplies to the Club (again)—it is
very much appreciated Mike! Please call now to
make your reservations for our upcoming events
and remember, this is your Club, and we thank
you for using it!
Take care! Archie
JULY 2011
ACT LIKE THE JOB YOU WANT
“…if you desire promotion, you must picture yourself as the leader
and act accordingly.”
BY CJ CALVERT
W
hen I was just getting started as a salesman, I initiated a contest that would track and rank
the progress of all of the salespeople in the department, and score everyone according to two
criteria: 1. Total margin earned and 2. Total gross dollars sold. Whichever salesperson ranked the highest
at either criteria at the end of each two week paycheque cycle would win a prize. The prizes were 2 x
$50 gift certificates to the store of their choice to buy something fun for themselves.
What was unique about the contest was that the prize money came out of MY paycheque. I was
offering additional commission, above and beyond what the company paid, on my own dime. And I
never told the other staff the entire time I worked at the company, and they never knew about it until
after I’d left.
Why would I do this? Why would I reward the people who were literally my peers, who had the same
job title as me and worked side-by-side with me? Because I believed that if you desire promotion, you
must picture yourself as the leader and act accordingly. My belief was that if the team succeeded, then
the company would succeed. I wasn’t looking at benefiting myself short-term. I wanted our sales team
to dominate and was willing to do nearly
anything legal and moral to motivate them
“Do as the best leaders do.
to trounce our competition.
Imagine doing this in your own company.
Generate ideas. Come early and
Go in to work tomorrow and take a good
stay late. Dress the part. When
look at the person working beside you who
all the other staff wore t-shirts
has the same level of responsibility. Now
imagine taking $100 off of each of your payand jeans, I walked into work
cheques and giving it to them as a bonus,
wearing a suit, silk tie, cufflinks,
every two weeks, for a job well done. Sound
crazy? That’s exactly what I was willing to do,
and a silk handkerchief folded
and I did it for a long, long time.
neatly in my breast pocket.”
If you want to get a promotion to Manager, act like a Manager. If you want a promotion to Director or VP, then act like a Director or a VP. Ask yourself “What does a leader do?” They
look at their department and wonder aloud, “What does my team need from me?” and they provide it.
Your team needs obstacles removed, processes streamlined, career paths and learning plans developed,
interpersonal conflicts resolved, a culture of excellence, resources made available, and tools that work.
If your team is missing any of these things, volunteer to help your leader get it changed.
Do as the best leaders do. Generate ideas. Come early and stay late. Dress the part. When all the other
staff wore t-shirts and jeans, I walked into work wearing a suit, silk tie, cufflinks, and a silk handkerchief
folded neatly in my breast pocket. You want the leaders looking at you and thinking, “This person has
massive potential! They carry themselves like a leader! They are always serving their team so that the
business can succeed…they are proactive and think strategically…by George, let’s get them into a
more formal position of leadership!”
Eventually, it came time to find a new North American Manager of sales. Interestingly, they didn’t post
the job publicly, and they didn’t post the job internally. They had decided they only wanted one person
for the role, and wouldn’t even consider another candidate. I’ll give you three guesses as to who was
offered the job. If you want a promotion, act like the job you want.
CJ Calvert is a Canadian motivational speaker, author of “Living an Exceptional Life” and president of
CalvertTraining, the motivational arm of Shepell-FGI.
JULY 2011
33
A second HST guide supporting best
practices for Ontario businesses is
released by CGA Ontario
To complement the CGA
Ontario Harmonized Sales
Tax in Canada, Ontario
edition booklet prepared in
2009, this booklet provides
an update and technical
overview focused on the
current HST rules.
The new HST guide can be viewed online at www.cga-ontario.org/assets/file/2011_CGAO_HST_book_II.pdf
HOW THE HST CHANGED
SMALL BUSINESS
“…the impact varies widely, depending on the type of business, its
products and customers.”
PROVIDED BY THE THE INSTITUTE OF CHARTERED
ACCOUNTANTS OF ONTARIO
I
t’s been almost a year since the Harmonized
Sales Tax became the law of the land in Ontario. It was a hard sell for government, which gave
taxpayers some relief with rebate cheques and
promised us that when all was said and done, the
cost of things wouldn’t really go up…much.
However, anyone who buys almost anything
knows that it’s individuals and families who really
pay the tax on consumption. But businesses have
been affected, too. Some more—and better—
than others, says Chartered Accountant Adam Rubinoff, Partner, Taxation Group at Soberman LLP in
Toronto, and Chartered Accountant Sonia Bajwa
Dhaliwal, Manager at Grant Thornton LLP in Mississauga. Here, these experts explain some ways
that small businesses might be feeling the impact
of the HST: some good; some not so good.
The tax burden has shifted – In the big picture,
harmonization in Ontario has shifted the sales tax
burden from businesses to individuals, Rubinoff
explains. As a result, businesses generally find
their costs have gone down. But the impact varies widely, depending on the type of business, its
products and customers.
More things get taxed – Basically, harmonization
has meant scrapping Ontario’s PST and expanding the federal GST from 5 to 13%. But the GST
has always applied to a wider range of goods and
services, so more things are subject to the 13% tax
under the HST system than under the old GST/PST
combination.
Most had to change processes – Rubinoff says
in his experience, most small businesses adjusted to
collecting and remitting HST on their own without
major costs. They probably would have received advice from the CRA or another reliable resource, like
a software company, bookkeeper or accountant. Of
course, there were some administrative costs to
make the change, typically borne by the businesses
themselves. But Ontario did step-up with a one-time
payment of up to $1,000 (subject to income tax) to
help compensate for the hassle.
Everything to Ottawa, nothing to Toronto – The
HST did simplify things for many businesses, large
and small. Companies that previously had to file
both GST and PST returns—sending the first portion
to the CRA and the latter to the Ontario government—now make just one payment to the CRA
for the full 13%.
34
Most businesses save – For small businesses that
used to charge both PST and GST on all their sales,
harmonization had two significant effects, says
Rubinoff. An example is a store that sells furniture,
he explains. Before harmonization, it could recover
only GST on its costs, no PST. Now it can recover
all the HST it pays. Administratively, Dhaliwal says,
it’s also much easier and more cost-effective for
businesses to file one return and remit one sales
tax amount to the CRA, rather than deal with two
tax authorities and have two audits.
Some small businesses got more and less
expensive – For a small business that once had
to charge GST but not PST, harmonization may
have both cut its costs and inflated the tax-included cost of its services. Take, for example, a
landscaper charging $100 for lawn care. Its invoice to customers would now total $113 instead
of $105, Rubinoff says. Regular non-business
customers who couldn’t recoup HST themselves
might balk at the higher, tax-included price, forcing the company to reduce its base prices and
cut its profits in the process. But if its customer
is another business that can recover HST too, the
increased, tax-included price would be less significant. The landscaper could then hold its prices
and also benefit from a decrease in operating
costs, because in the accounting world, the effective price of its lawn mowers and grass seed
has declined by $8.
The smallest guy loses most – In general, the
big losers are very small businesses, especially
those that previously could not, or chose not, to
register for GST/HST. This may have been because
either their annual sales were under $30,000 or
their businesses, by their very nature, were exempt from charging sales tax. For many, unless
they can raise their prices, the increased sales
tax they now must pay effectively undercuts their
profit margins.
For specific advice about the HST and how to manage it most effectively in your own small business,
schedule a meeting with a Chartered Accountant
in your community.
Brought to you by The Institute of Chartered Accountants of Ontario
JULY 2011
ANGEL INVESTORS:
The Unsung Heroes of the
Canadian Economy
Continued from page 1
Cheque presentation at Creek Shore Farms. From left to right: Geordan Robertson – Manager, Small Business &
Professionals, Scotiabank Niagara Business Banking Centre; Amanda and Ryan Thiessen – Owners of Creek Shore
Farms; Ron Colavecchia – District Manager, CFIB; and David Wilton – Director, Small Business, Scotiabank.
NATIONAL SMALL BUSINESS
AWARD WINNER
Niagara’s own Creek Shore Farms wins national small business
award from Scotiabank and CFIB.
BY SCOTT LESLIE
The Business Link
C
reek Shore Farms has always believed in going green—but now they have a little more
“green” to work with. The small organic farm
in Jordan Station recently won The Scotiabank
and CFIB Small Business Big Impact Challenge
in the “Products and Services” category. Creek
Shore Farms received $10,000 for finishing first
in its category.
The challenge is sponsored by the Scotiabank
and the Canadian Federation of Independent
Business (CFIB)—Canada’s largest association
of small and medium-sized businesses. This year,
the judges received over 1,000 submissions in
the Products and Services category from small
business owners across Canada including 496
from Ontario.
“We’d like to congratulate Creek Shore Farms’
owners Amanda and Ryan Thiessen on their success
in the challenge,” said David Wilton, Director of
Small Business at Scotiabank. “While we received
many terrific submissions, we were impressed with
Creek Shore Farms’ business model, committing
both to sustainable, organic farming and making
their community a better place to live.”
The Scotiabank and CFIB Small Business Big
Impact Challenge is open to small businesses in
Canada that demonstrate their business is making a difference in their community. A winner is
selected in three different categories—Employment, Products or Services, and Leadership—and
each finalist is awarded $10,000.
The Thiessens are both in their 20s and have
had great success selling organic produce since
they launched their 10-acre organic farm in 2009.
They raise Newfoundland sheep, Muscovy ducks,
and free range eggs, and grow many types of
plants and vegetables based on customer input.
Amanda and Ryan use only natural processes on
JULY 2011
…thereby bringing to the membership only quality, investment ready opportunities.
Most often, Angels ask themselves a series of questions on whether the company would be a good
investment. Is this the right management team to execute the business? Does the product address a clear
need in the market? Is the company valued properly and can investors achieve exit? Angels want to see
that the company can achieve key milestones with requested funds, and want to hear a compelling case
for the business opportunity. They are looking for a smart, seasoned management team, a unique and
protected technology, and have confidence that the company’s product has already been accepted in a
competitive marketplace.
Once the company passes the due diligence, Angels, through a deal lead, begin the process of negotiating
a term sheet with the company. This is essentially the financial structure of the investment. It is the
mechanism by which the valuation will be set, outlining the amount, the ROI, use of funds, milestones
and protection. Angels will continue to monitor their investment, provide mentoring, and watch with
anticipation the company’s growth, success, job creation and community impact.
With so many advantages and flexibility with Angel investment, companies are flocking to these
lenders rather than traditional banking channels. The Niagara Angel Network is presently accepting
applications for company presenters as well as accepting applications for new members. Please visit our
website at www.niagaraventureforum.com or you can contact Executive Director, Nick DiPietro directly
at [email protected].
The Niagara Venture Forum is located at 198 Welland Street,
Upper Level, in Port Colborne ON. For more information, please call
905.834.2173 Ext. 26, email Nick DiPietro at [email protected]
or visit www.niagaraventureforum.com.
their farm, and all their livestock and produce are
raised and grown without any chemicals.
The Thiessens have become involved in a
Community Supported Agriculture (CSA) program that allows people in the community to
pre-purchase organic vegetables. (By enrolling
in the program, customers receive a box of fresh
produce every week from May to October.) The
couple also donates much of their products to
their local food bank.
“While we received many
terrific submissions, we were
impressed with Creek Shore
Farms’ business model,
committing both to sustainable, organic farming and
making their community a
better place to live.”
“Creek Shore Farms exemplifies the very best
qualities of small businesses in that they run the
business in a first-class way,” says Catherine Swift,
president of CFIB, “and giving back to the community is an integral part of their business plan.”
Amanda and Ryan were incredibly appreciative
of Scotiabank and CFIB for recognizing the way
they operate their family business. According to
the young couple, they get a big thrill out of doing
their part for the environment and the community
at the same time.
“Our initial goal was to supply the people in
our community with a great source of fresh organic food,” Amanda says. “So far we’ve been
meeting this goal. There are so many people looking to eat more naturally, and we’re pleased to
help them.”
35

angel investors: the unsung heroes of the canadian economy

Transcription

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