angel investors: the unsung heroes of the canadian economy
Transcription
angel investors: the unsung heroes of the canadian economy
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 CONTEST! Download any free QR Barcode reader app to your mobile device and scan this code for your chance to win! CONTENTS 07.11 VOLUME 9, ISSUE 6, JULY 2011 READ THIS PUBLICATION ONLINE AT BUSINESSLINKNEWSPAPER.COM Locally Owned and Operated PUBLISH E R The Business Link Niagara Ltd. 13 Secord Dr., Suite #3 St. Catharines, ON L2N 1K9 Tel: 905-646-9366 Fax: 905-646-5486 email: [email protected] www.BusinessLinkNewspaper.com CO-PUBLIS H E R S Jim Shields, Adam Shields 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 CIRCULAT I O N The Business Link Niagara Ltd. is published 12 times per year and distributed to approximately 15,000 businesses in the Niagara Region via Canada Post. SUBSCRIPTION R AT E S $39.99 for 12 issues. Please send a cheque or money order to the address above. Any reproduction or use of the content within this publication without permission is prohibited. Opinions and comments within this publication reflect those of the writers and not necessarily that of The Business Link Niagara Ltd. All advertising is accepted subject to the Publishers’ discretion. The Publishers will not be responsible for damages arising out of errors in advertisements beyond the amount paid for the space occupied by that portion of the advertisement in which the error occurred. Any design, artwork, copyright or typesetting supplied by The Business Link Niagara Ltd. is for the exclusive use by the Publishers. Any other use not authorized is an infringement of copyright. No part of this publication may be reproduced or transmitted in any form or by any means, without prior written permission of the Publishers. 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 www.BusinessLinkNewspaper.com JULY 2011 JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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] www.BusinessLinkNewspaper.com tel: 905.682.2458 78 Queenston St., St. Catharines ON [email protected] www.burtnikprinting.com ADVERTORIAL 8 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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, www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com 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. THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 13 COMMUNITY SPOTLIGHT: THE TOWNSHIP OF WEST LINCOLN 14 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com 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. THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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. www.BusinessLinkNewspaper.com JULY 2011 JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 17 BUSINESS MEN IN NIAGARA 18 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com JULY 2011 BUSINESS MEN IN NIAGARA JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 19 BUSINESS MEN IN NIAGARA 20 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com JULY 2011 BUSINESS MEN IN NIAGARA JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 21 BUSINESS MEN IN NIAGARA 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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. www.BusinessLinkNewspaper.com JULY 2011 JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 23 24 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com 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. THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 www.BusinessLinkNewspaper.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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 29 30 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER www.BusinessLinkNewspaper.com JULY 2011 JULY 2011 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 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 www.BusinessLinkNewspaper.com 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 www.BusinessLinkNewspaper.com …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.” THE BUSINESS LINK NIAGARA NIAGARA’S BUSINESS NEWSPAPER 35