Celebrating the game changers Ontario 2012
Founded and produced by
Special supplement published by OT Communications.
© 2012 Ernst & Young LLP. All Rights Reserved. “Entrepreneur Of The Year” is a registered trademark of EYGN Limited.
Our judges We sincerely thank our judges for generously sharing their knowledge, experience and perspectives — and their valuable time — to select the award finalists and winners.
John Albright
Claude Haw
Ginny Dybenko
Dr. IIse Treurnicht
David R. Shaw
Andrew Claerhout
Andrew Bergstrom
Don Morrison
Founder and Managing Partner Relay Ventures
Executive Director – University of Waterloo, Stratford Campus
Founder and Chief Executive Officer Knightsbridge Human Capital Management Inc.
Executive Vice President and Managing Director Cossette Communications Inc.
Managing Partner Venture Coaches
Chief Executive Officer MaRS Discovery District
Vice-President Ontario Teachers’ Pension Plan
Senior Managing Director and Country Head OMERS Private Equity
You’ll be inspired
Meet our Ontario leadership team For nearly 20 years, we’ve celebrated the best in Canadian entrepreneurial talent. We’re proud to help entrepreneurs achieve their growth goals and reach new heights. Contact us to learn how we can support you, or visit us at ey.com/ca/EOY.
Ontario Colleen McMorrow
transformational power of Canada’s entrepreneurs.
National and Ontario Director, Entrepreneur Of The Year National Leader, Entrepreneurial Services 416 943 2718 | colleen.m.mcmorrow@ca.ey.com
That’s why we’ve proudly celebrated their achievements
Katelyn Jarosz
At Ernst & Young, we’re big believers in the
for nearly 20 years. We use the term “game changers” a lot in the Ernst &
National and Ontario Co-ordinator, Entrepreneur Of The Year 416 941 1810 | katelyn.jarosz@ca.ey.com
Young Entrepreneur Of The Year program. And with good
Greater Toronto Area
reason. A game changer is a creative innovator who
Eric Rawlinson
breaks the mould and creates something new, improves a product, process or service, or develops a new way of
Office Managing Partner 416 943 3129 | eric.f.rawlinson@ca.ey.com
doing business to increase profitability.
David Fabian
Game changers are people who advance the world in
Co-Leader, Private Mid-Market 416 932 6250 | david.fabian@ca.ey.com
some way — big or small — and leave things better than they found them.
David Steinberg
The Ontario regional award finalists you’ll read about in
Co-Leader, Private Mid-Market 416 932 6206 | david.a.steinberg@ca.ey.com
these pages show that our province is home to some of
Joe Telebar
the most dynamic innovators in the world. These men and women are creating the growth that generates jobs,
Private Equity Leader 416 943 3527 | joe.m.telebar@ca.ey.com
inspires generations, and helps empower Canada to
Bill Demers
realize its full potential as a nation. We’re proud to share
IPO Leader 416 943 3055 | bill.l.demers@ca.ey.com
their success stories with you. I hope you’ll be as inspired as I am by these achievements
Southwestern Ontario
and the people behind them. As we look ahead to the next
Greg McCauley
20 years, we continue to look to Canada’s entrepreneurs
Office Managing Partner 519 571 3319 | greg.j.mccauley@ca.ey.com
for the ingenuity, innovation and inspiration that change the game for us all — for the better.
Warren Granger Entrepreneur Of The Year Leader 519 646 5534 | warren.granger@ca.ey.com
Colleen McMorrow Partner, Ernst & Young LLP National and Ontario Director, Ernst & Young Entrepreneur Of The Year
Kevin Casey Entrepreneurial Services Leader 519 571 3311 | kevin.j.casey@ca.ey.com
Ottawa Deanna Monaghan Office Managing Partner 613 598 4305 | deanna.j.monaghan@ca.ey.com
Dave Walsh Entrepreneur Of The Year Leader 613 598 4331 | dave.g.walsh@ca.ey.com
Ian Sherman Entrepreneurial Services Leader 613 598 4335 | ian.m.sherman@ca.ey.com
Table of Contents Meet the 2012 Ontario Entrepreneur Of The Year Judges – page 2 2012 Ontario Entrepreneur Of The Year Directors Message and Leadership Team – page 3 SPECIAL CITATION - SOCIAL ENTREPRENEUR Johann Olav Koss - Right To Play International - page 6
BUSINESS-TO-CONSUMER PRODUCTS AND SERVICES Tim Beauchesne, Steve Beauchesne - Beau’s All Natural Brewing - page 7 Alex Rechichi, Mark Rechichi - Extreme Brandz - page 8 | Gordon Lownds - ListenUP! Canada - page 10
CLEANTECH John van Leeuwen, Steven Bloembergen - EcoSynthetix Inc. - page 12 Dr. Phillip (Rocky) Simmons - Eco-Tec Inc. - page 14 | John Paul Morgan - Morgan Solar - page 15
EMERGING ENTREPRENEUR Richard Karlo - Karlo Estates Inc. - page 16 | Andrea Marcus - Mistura Inc. - page 17 Somen Mondal, Shaun Ricci - N4 Systems, Inc. - page 18
MINING AND METALS John A. McCluskey - Alamos Gold Inc. - page 19 | René Marion - AuRico Gold Inc. - page 20 Nick Barisheff - Bullion Management Group Inc. - page 22
BUSINESS-TO-BUSINESS PRODUCTS AND SERVICES Michael Back - Collective Point of Sale Solutions Ltd. - page 24 Jennifer Nashmi , Victoria Sopik - Kids and Company Ltd. - page 26 | Ezer Mevorach - Mevotech Inc. - page 28
YOUNG ENTREPRENEUR Tara Schlupp, Ho Tek - Domus Student Housing Inc. - page 30 | Jon Lerner, Derek Ting - Enflick Inc. - page 31 Ray Cao, Aditya Shah - Loose Button - page 32
INFORMATION TECHNOLOGY Leerom Segal - Klick Inc. - page 33 | Harley Finkelstein, Tobias Lütke - Shopify - page 34 Robert Herjavec - The Herjavec Group - page 35
SERVICES Christopher Szybbo - CBI Health Group - page 36 | Gerald M. Soloway - Home Capital Group Inc. - page 38 Jon Hantho - Maxxam Analytics - page 40 | Lori Lord - Spectrum Health Care - page 42
MEDIA AND ENTERTAINMENT James Schmalz, Michael Schmalz - Digital Extremes Ltd. - page 44 David Fortier, Ivan Schneeberg - Temple Street Productions - page 45 Allen Lau, Ivan Yuen - Wattpad - page 46
LIFETIME ACHIEVEMENT AWARD RECIPIENT FOR ONTARIO, JOSEPH L. ROTMAN O.C., LL.D. – PAGE 47 Published by O.T. Communications | www.otcommunications.com | Canadian publications mail sales product agreement No. 41126516
Return undeliverable Canadian addresses to circulation dept. 1025 101 6th Ave. SW, Calgary, AB T2P 3P4 info@businessincalgary.com 4
Ernst & Young Entrepreneur Of The Year 2012
E&Y Entr
Awards acknowledge innovation, hard work, collaboration and vision. TEC Canada congratulates all of the Ernst & Young Entrepreneur Of The Year finalists and award recipients. TEC Canada is dedicated to helping good leaders become great CEOs. Discover how our unique approach to leadership development based on mutual support and fierce honesty will bring you the growth and bottom line results you seek.
Leaders in good company. 800.661.9209 | tec-canada.com
Visit our website for the many awards our members win! Celebrate their success and join us on LinkedIn and Twitter
E&Y Entrepreneur of the year Ad Business in Calgary V4.indd 1
12-09-10 2:29 PM
SpeCIal CItatIon - SoCIal entrepreneur
Johann Olav Koss Right To Play International
J
ohann Koss is, undoubtedly, an inspiring person. As one of the greatest winter athletes of all time, being a four-time Olympic gold medallist in speedskating, it would be easy to describe him as merely an athlete. Which he is, and so much more. He went on to acquire his medical degree and a host of other accolades, but what is likely his greatest accomplishment is successfully launching Right To Play. This non-profit organization uses the transformative power of play to educate and empower children facing adversity all over the globe. In 1993, Johann visited the African country of Eritrea. While there he noticed a group of children admiring a picture of war martyrs. When a group of professional cyclists who were training went by, the children lost interest in the poster and began cheering and waving to the cyclists. Johann then realized the true power of sport and what it could do for young minds. “I believe that everything you do in life is for a reason and gives you the experience and the knowledge to tackle future problems,” says Johann. “Everything that has happened in the past makes you the person you are today. I have learned more from failures than success.” After receiving his medical degree in Australia, Johann moved to Toronto to pursue building and spreading Right To Play around the globe. It launched its first program in 2001 in seven countries. Today, Right To Play operates in more than 20 of the most disadvantaged countries in the world, impacting education, child development, health promotion, disease prevention, conflict resolution and so much more. “My advice to fellow entrepreneurs is to be willing to work incredibly hard and be passionate about what you are doing,” says Johann. “Starting an organization and getting other people to believe in what you are doing and support you is a lot of hard work, but if you really care about what you are doing and are willing to persevere, you will be successful. You don’t need a fully finished plan before you start – it is impossible to know everything you need to do anyway. The most important thing is to start living your entrepreneurial dream.”
6
Ernst & Young Entrepreneur Of The Year 2012
BuSIneSS-to-ConSuMer produCtS and ServICeS
Tim and Steve Beauchesne Beau’s All Natural Brewing
S
olidifying a reputation for quality and ingenuity in the hyper-competitive Ontario brewing industry is no small accomplishment.
Founded in 2006 by Tim Beauchesne and his son, Steve, Beau’s All Natural Brewing has steadily grown into an innovative, industry-leading brewery that still basks in its small-town roots. Started and still operating out of Vankleek Hill in eastern Ontario, Beau’s is a fixture in the town, with employees often flying Beau’s flags in front of their homes. To get to this point, and the inevitable success ahead, the Beauchesnes had to overcome their fair share of hurdles along the way. From the beginning, securing startup capital was a major challenge. After approaching a long list of banks and other lenders, they were eventually able to generate enough funding to set up the business by offering ownership stakes to friends, family and other individuals. “I’ve always felt I had a good grasp of the big picture and haven’t let some of the nagging details derail what I wanted to accomplish,” says patriarch Tim Beauchesne. Over time, the brewery made a name for itself, first by marketing directly to bars and restaurants – this allowed Beau’s to grow without initially having to take on bottles and the related costs and labour that come with them. Since its inception, Beau’s has grown from serving seven restaurants to approximately 700 and is now available in over 200 LCBO stores provincewide. “Success is something that is ongoing,” says Steve Beauchesne. “I can never get to a point where I will say, ‘I’m done now.’” The entire Beau’s family is dedicated to more than just profits and beer – they give back to the community. As an example, the brewery began a home delivery service that was operated by Operation Come Home and employed trained homeless individuals. It hasn’t been an easy road, but it has been a rewarding one that will continue for years to come. But, with all successes come growing pains and missteps. “I’ve definitely made my share of mistakes,” Steve jokes. “There is nothing you don’t learn from.” Steve, Tim and everyone at Beau’s All Natural Brewing have learned and grown along their impressive journey – now it’s just a matter of seeing what’s next from the little brewery that could.
Ernst & Young Entrepreneur Of The Year 2012
7
BuSIneSS-to-ConSuMer produCtS and ServICeS
Alex and Mark Rechichi Extreme Brandz
A
nyone looking for the definition of hard work need only to take a minute to speak with the Rechichi brothers – hard work is what got them to where they are today.
Alex and Mark Rechichi are co-founders of Extreme Brandz, a Canadian icon in the food service industry. Sons to an Italian immigrant who started his own construction company in Canada, the brothers started off working for their father, learning the meaning of dedication. Alex and Mark jumped at an opportunity they believed in that just happened to be centred around food. The pair polled friends and family, hoping to find investors who would be willing to put up the final cash needed. Three friends came through and the first Extreme Pita was born 15 years ago in Waterloo, Ont. “If you have no experience, that’s an asset,” says Alex Rechichi. “I think that being intelligent and also being somewhat naive doesn’t give you preconceived notions. It doesn’t hold you back.” They soon saw success and were ready to open a second location. Differing opinions on which direction the company should take led to Mark and Alex buying out their fellow investors. Alex left his career and began working full time on Extreme Pita. By the time they opened their fourth location, Mark was also ready to concentrate all his time on their new endeavour. “I am cautious and spend more time thinking and analyzing situations before making a decision. But once a decision is made, Alex’s strength is in his ability to communicate the message and motivate the team towards the common goal,” says Mark. By 2006, the brothers led the development of a multi-branded portfolio and introduced Extreme Brandz to the Canadian marketplace. Along with Extreme Pita they brought Mucho Burrito and Purblendz All Natural Smoothies to Canada. To date, Extreme Brandz has 350 units in operation across North America. It wasn’t an easy road, but the success the Rechichi brothers continue to see all comes down to hard work and the right mindset. “I always tell our franchisees that when you are in business there are some days where you will feel like a king or queen of the world and others where you don’t want to get out of bed,” says Alex. “If you remain positive you always tend to achieve way more of the ups than the downs.”
8
Ernst & Young Entrepreneur Of The Year 2012
From a small Pita Shop in Waterloo, Ontario, to an International franchise organization with multiple brands, we are proud to share our accomplishments with a dynamic group of Extreme Team Members and committed Franchisees. Their commitment, passion, and perseverance makes it possible and all of it worthwhile. We are honoured to share this recognition with all of them as it could not be accomplished alone. Alex Rechichi – President and Co-Founder Mark Rechichi – CFO and Co-Founder
extremebrandz.com
BuSIneSS-to-ConSuMer produCtS and ServICeS
Gordon Lownds ListenUp! Canada
W
hen you start your entrepreneurial journey by “running away to join the carnival” at the age of 16, you’re bound to learn a thing or two about life and business. Gordon Lownds has gleaned a lot by following an eclectic and free-spirited path, and it all stems from an insatiable curiosity, being open to opportunities and the ability to visualize how to make a difference. “The ups and downs are all beneficial experiences and as long as you can take responsibility for your decisions, handle the stress, and learn and grow along the way, it’s all good,” says Gordon. Gordon’s career evolved dramatically, from early adventures in the music business, to Consumers Distributing and Hudson’s Bay Co., and finally to management consulting. He then co-founded a boutique investment banking firm to originate leverage buyouts, purchasing Color Your World in 1989 and the Canadian division of Simmons Mattress Co. in 1990. This led to the beginning of Sleep Country Canada in 1994. Its success is legendary and its brand presence in Canada is second to none. Much of that success is owed to Gordon’s vision, ingenuity and drive. Gordon’s concept of success has evolved, “from personal economic security, to a broader vision of making a difference in the world by solving problems for the consumer and building sustainable businesses.” After selling Sleep Country in 1999 Gordon retired, but only for a while. When a colleague described an atrocious experience in trying to get treatment for a hearing loss, including purchasing a hearing aid, Gordon’s response was: “Someone ought to do something about that!” The result was ListenUp! Canada, born in 2003. Gordon did his typical thorough analysis, researching the industry and posing as a customer at existing hearing clinics. This solidified his belief that a superior clinical and shopping experience could be offered. He overlaid a marketing-driven approach onto a complacent health-care sector and built a chain of 105 clinics in Ontario, rapidly becoming the industry leader in customer service and innovation. Scale economies enabled ListenUp! to deliver a superior competitive offering, better value for the consumer and an attractive profit model. The simplest advice Gordon has for fellow entrepreneurs is to always be open to learning and new ideas … and most importantly: “Learn to say ‘I’m sorry’ when you’re wrong,” he says. “It’s a rare quality in a leader and is a show of strength and character ... not a sign of weakness.”
10
Ernst & Young Entrepreneur Of The Year 2012
T he resounding success of ListenUP! Canada is a testament to the combined talent and enthusiastic
devotion of a brilliant, tireless, and loyal management team. They are the heart and soul of our company, bringing diverse and complementary experiences, expertise and personalities to the fore to create a dynamic and collegial work environment, characterized by integrity in all we do and mutual respect. This is at the core of what makes ListenUP! Canada such a vibrant and prosperous enterprise. I also wish to acknowledge the invaluable contributions of my two partners - Michael Moore (COO) and Andrew LaRocque (CFO) – and thank our all-star senior management team, a superb central support staff, and all of our clinic staff and healthcare professionals who are committed to enhancing the lives of so many Canadians who suffer from hearing loss. ~Gordon Lownds
CleanteCh
John van Leeuwen and Steven Bloembergen EcoSynthetix Inc.
I
n the past 15 years, John van Leeuwen and Steven Bloembergen have guided EcoSynthetix to the front of the biopolymer and renewable chemicals industry. Both John and Steven have varied and impressive pedigrees that compliment each other perfectly. John is recognized as a leading software and internet entrepreneur with an extaordinary track record of identifying and growing successful ventures. Steven is a biomaterials visionary and innovator whose dedication to environmental leadership is balanced by keen business insights. “I strive to identify technologies that are disruptive—ones that can significantly impact our world,” says John. “It’s exciting to discover the next ‘Big Idea’, and commercialize it successfully.” Steven and John, both born in The Netherlands, immigrated to Canada to take advantage of the wealth of opportunities this country had to offer. They studied together in university and both spent considerable time in the plastics industry. This is where they both saw firsthand the negative impacts that many petrochemicals have on our environment. This led them to aggressively explore eco-friendly, green alternatives and EcoSynthetix was born. The company is dedicated to creating a more sustainable world by displacing petrochemicals and polymers in various manufacturing sectors with renewable, bio-based materials. And after more than 15 years in business competing in an ever-changing, challenging industry, they have had to overcome their fair share of obstacles. In 2001, EcoSynthetix was in the final stages of developing a bio-based adhesive technology for the U.S. Postal Service—the next generation of stamps. However, the attacks of September 11, 2001 caused the USPS to derail the project. A tough decision had to be made—what now? John and Steven made the decision to focus on biolatex® binder technology instead. This unique, green chemistry is based on a platform developed by Steven utilizing natural, renewable feedstocks and is now in commercial use as a binder for coated paper by a number of the top 20 paper and cardboard companies around the world. With John and Steven leading the charge, EcoSynthetix continues to build a strong portfolio of solutions ranging from its flagship EcoSphere® biolatex binder products to the emerging EcoMer® bio-based building blocks platform. By focusing on the three key drivers of economics, performance and sustainability advantages, EcoSynthetix will continue to grow its presence in a multitude of industries from building products to personal care while expanding its reach into the pulp and paper market. “My definition of success is to build something that solves a large problem and benefits not only those around you, but the next generation. We must become better stewards of our natural resources. I want to leave behind something positive for the future inhabitants of this beautiful planet,” says John.
12
Ernst & Young Entrepreneur Of The Year 2012
PM Stephen Harper and Burlington MP, Mike Wallace visit our Centre of Innovation- Dec 2011
The largest Cleantech IPO in Canada (TSX:ECO)- Aug 2011
While we were elated to be selected as 2012 Ernst & Young Entrepreneur Of The Year Finalists in the Cleantech category, Ontario Region, this honour truly was the result of a cumulative team effort. We would sincerely like to thank our valued employees, advisors, business partners and customers whose collective passion and vision helped us to reach this level of success. We can all share the pride of making the world of industry more efficient and sustainable while simultaneously Giving Back to Planet Earth. Thank you for having the courage to drive change, and we look forward to sharing many more years of achievements together as EcoSynthetix continues to evolve and grow. Sincerely, John van Leeuwen, CEO Steven Bloembergen, Executive Vice President EcoSynthetix Inc.
www.EcoSynthetix.com
CleanteCh
Dr. Philip “Rocky” Simmons Eco-Tec Inc.
D
r. Philip “Rocky” Simmons does things his own way – with passion, honesty, fairness and unwavering dedication.
As president and CEO of Eco-Tec, Rocky helped found the industry-leading company that designs, develops and manufactures equipment for industrial water treatment and purification of chemicals and gases.
Rocky has a PhD in chemical engineering from the University of Toronto, which is where Eco-Tec truly came together. After graduating he joined Wix Corporation, an automotive filter manufacturer, as research and development manager. With strong connections to the U of T, Rocky saw great potential in Recoflo technology, the basis of his masters and PhD thesis that was developed at the university, with its origins dating back to the 1950s. Rocky was able to bring Wix under the leadership of L.W. Nourse and other professors at the school to form Eco-Tec in 1970. “To me, success is the creation of a dynamic, rewarding, financially successful company in which all stakeholders – customers, shareholders and employees – win,” says Rocky. “This has changed over the years, with more emphasis on the employees – the key to our success.” While success certainly has come for Rocky and Eco-Tec – it didn’t come easily. The first challenge was to convince American and European companies wasting chromic acid, nickel salts, metals and other materials that there is another more viable option. “My major accomplishment is having been instrumental in taking a technology from the University of Toronto, department of chemical engineering and applied science, and given the opportunity, creating a unique, environmentally-driven, innovative, global company,” says Rocky. Since Eco-Tec first got off the ground in 1970, the company has expanded to 58 countries and 2000 systems being used in a wide range of industries. With such close links to the U of T and high-education as a whole, there is little surprise that Rocky continues to be active in the academic community. He is chair of the chemical engineering advisory board at the U of T and has received an honorary doctorate from the school for his contribution to academics and the engineering community. Rocky was also involved as a governor at the University of Ontario Institute of Technology and Durham College. For those looking to tap the vast entrepreneurial knowledge Rocky has gained over the years, his advice is as simple as it is crucial to future entrepreneurs. “The only advice I can give to others is to be passionate, have integrity and honour in all your dealings, treat your employees and customers with the utmost respect, and enjoy the remarkable journey,” Rocky says.
14
Ernst & Young Entrepreneur Of The Year 2012
CleanteCh
John Paul Morgan Morgan Solar
John Paul Morgan has big ideas. After travelling to Congo and working with Doctors Without Borders he turned down a prestigious job offer to tackle a “small” problem: how to make solar energy accessible and affordable. “In Africa, I saw how a lack of access to electricity and to affordable energy in general was a barrier to development and better lives for the people there,” says John Paul. “At the same time, I knew that a tremendous amount of energy from the sun is simply wasted on the ground. I felt that solar power’s technical problems were soluble.” It’s a problem scientists and engineers have toiled over for years. While there was promise in some budding technologies, they were costly, large, bulky and impractical. John Paul, an optical engineer by training, set out to solve the problem of designing a concentrator that used fewer materials, and only a low-capex, well-established manufacturing process. What some saw as impossible, John Paul was able to overcome. In a month, using software he wrote himself, he invented an injectionmoulded, 10-millimetre-thick optic, that has gone from a mere concept to mass production in five short years. “I got lucky,” says John Paul. “I asked a lot of the right questions.” By 2013, solar energy is expected to be a $100-billion industry. Morgan Solar is in a good position to not just be a part of it, but to lead this evergrowing industry. Cost is the key differentiator of Morgan Solar’s products compared to the competition. Its Sun Simba concentrating module is made only of lowcost, commodity materials: glass, acrylic and aluminum, breaking away from the sensitive supply chains that hamper modules using more specialized materials. Going forward, partnerships are central to John Paul’s growth plan. Strategic investors and large energy moguls have taken notice and are getting on board the Morgan Solar train. Enbridge, as an example, has an interest in financing solar projects. It’s safe to say the future is bright for John Paul Morgan and Morgan Solar.
Ernst & Young Entrepreneur Of The Year 2012
15
eMerGInG entrepreneur
Richard Karlo Karlo Estates Inc.
W
here profit wasn’t expected for 10 years, Karlo Estates made it in two. In the first vintage, Karlo’s Van Alstine Port was named among the top 10 cutting-edge wines in the world.
Richard Karlo is breaking new ground using locally-sourced barrels, crafting classic varieties with wild fermentations and producing wines with hybrid grapes that achieve a new standard of refinement that have yielded a gold medal at the coveted Intervin international wine competition. It’s no wonder Karlo advertising advises to “Expect the Unusual.” “We actually do little advertising,” says Richard. “Most promotion is social media and word-of-mouth. We have quickly evolved into one of the fastest-growing and well-respected wineries in Prince Edward County.” Karlo Estates focuses on great wine and exemplary service. “As a winemaker and wine judge I’m very quality conscious.” Starting production in 2008, Karlo Estates opened in 2010, with over a dozen different varietals, offering a large portfolio of unique premium wines. Karlo has sold out of every vintage since and now makes 4000 cases. Most recently the winery has secured a distribution agreement for Japan and made its first sale. “My strategy is to create an authentic, rustic and comfortable environment to draw people with beauty and charm. Staff are trained to demystify wine and empower people – treating customers as friends.” The tastings are an event, including food pairings and imparting knowledge while offering bar stools, encouraging guests to stay awhile. Clients become ambassadors. Coming from the automotive industry, Richard developed a tough skin and became a good judge of character. Having the right people on board is key. “I see adversity as opportunity,” he says. “If there’s a bad situation that would put most people off I can often turn it into a positive.” As an industry leader – vice chair of the Prince Edward County Winegrowers Association, board member of the Wine Judges of Canada, a TASTE marketing member and a founding member of Slow Food the County – Richard serves his community by donating his time and products to many local charities. After effecting change on how Canadian wines are displayed at the shelf, Richard now lobbies for revisions to government policy to improve wineries’ access to market and open up VQA regulations to new hybrid varietals that are perfect for Canadian terroir. “We plan to continue championing a unique approach to marketing our wines and developing lesser known varietals into profitable brands.”
16
Ernst & Young Entrepreneur Of The Year 2012
eMerGInG entrepreneur
Andrea Marcus Mistura Inc.
A
ndrea Marcus has always had an entrepreneurial spirit. Before starting Mistura Beauty Solutions she had another venture importing high-quality baby products from the United Kingdom that she went on to sell to a larger company.
After many years of fundraising, event planning and philanthropy, her entrepreneurial calling was truly realized after not being able to find a simple makeup product that would match her skin tone. Frustrated and overwhelmed by mainstream cosmetic choices, Andrea set out to develop a product that would offer an easyto-use makeup for all skin tones. With the help of a private label manufacturer, the six-in-one Beauty Solution® was born and Andrea went on to market the product to eager consumers across the U.S. and Canada. But success on this level doesn’t come easy – Andrea had to adapt and recognize her strengths to carve out a place for Mistura in the hyper-competitive cosmetic industry. “Throughout the past few years, I have come to see myself as an exceptionally gifted communicator,” she says. “I had never realized how impactful or important good communication was in the business world until I started my company. For me, communication is not just about maintaining good relationships with your suppliers and customers but also how you market your brand. I am proud to have written all of my corporate marketing and business development material on my own saving not only thousands of dollars in the process but also creating a brand that was true to who I was.” New products are on the horizon for Mistura including eyeliners and mascaras in addition to an expanded skincare line. Expansion and growth are important, but Andrea is mindful of the company staying true to its founding principles and customer base. For budding entrepreneurs, Andrea gives this advice: “Entrepreneurship is not for the weak at heart or risk averse. It requires an inordinate amount of commitment, strategy, passion and determination. The success of a business is 99 per cent work and one per cent luck and even great ideas and business models fail without these fundamental principles in place.”
Ernst & Young Entrepreneur Of The Year 2012
17
eMerGInG entrepreneur
Somen Mondal and Shaun Ricci N4 Systems, Inc.
C
onfidence isn’t something that just happens. By accepting obstacles and finding a way to overcome them, confidence naturally develops. For Somen Mondal and Shaun Ricci of N4 Systems, their confidence is well earned. Before N4 Systems officially launched in 2007, it gradually grew as a side project for the pair back when they were working full time at an IT consulting firm. On lunch breaks, evenings and weekends the duo would work tirelessly to develop the company as it is known today. “Our only regret is that we didn’t get started sooner,” says Somen. “Have we made mistakes along the way? Absolutely, but we believe that as long as you learn from your mistakes they are not regrets. We are still a young and emerging business, but we’re very proud in what we’ve been able to achieve in a relatively short time.”
From the beginning Somen and Shaun set out to be considered experts on the topics of radio frequency identification, mobile computing and software-as-a-service – specifically in the safety and compliance realm. Their bread and butter is Field ID, the leading inspection and safety compliance management software in the industry. Being used by thousands of users around the world, Field ID automates the traditional, paper-based inspection model. “Our mission has always been to make safety and compliance as simple as possible. Success to us is achieving this goal. That can mean introducing a single safety professional to our solution, or solving safety management problems for large organizations,” says Shaun. The success of N4 Systems is impressive, but they are not resting on their laurels. Despite having major companies as customers – including General Electric, Rolls-Royce, Rio Tinto and others – the company is always looking to grow. Recently one of the largest safety equipment manufacturers in the world, MSA, signed on to use the Field ID Safety Network. With the success Somen and Shaun have had to date, they have learned a lot and it hasn’t come easily. “Measure everything,” says Somen. “You never know where or how to improve if you don’t know where your weaknesses are. Having the proper metrics in place can provide amazing insight into your business, especially as you grow.”
18
Ernst & Young Entrepreneur Of The Year 2012
MInInG and MetalS
John A. McCluskey Alamos Gold Inc.
J
ust because something is unconventional, doesn’t mean it can’t be successful. John McCluskey never expected to be in the mining industry, but he sure is successful. This accidental entrepreneur didn’t have any formal technical training, but in the early ’80s he came across Chester Millar who saw something in John and convinced him to join Glamis Gold Ltd. “I clearly took the road less travelled, relative to my peers,” says John. “Not a lot of them were going into mining. I wasn’t trained for the mining business but an interesting opportunity was presented and I took it.” In 1993 he went out on his own to be a consultant in the mining industry. He had a unique approach to winning clients – he would buy equity in the companies themselves to prove he was heavily invested in their success. With a few years of experience under his belt, John joined forces with his old friend and mentor Chester Millar in 1994. New opportunities became available in Mexico thanks to relaxed restrictions on foreign companies owning mining claims. As a result, John and Chester formed Alamos Minerals to acquire and develop mining assets in the country. Then through a merger with National Gold, Alamos Gold was established in 2003, with John taking the helm as CEO. In 2006 the company’s Mulatos Mine began commercially producing gold and will produce its one millionth ounce of gold and generate its one billionth dollar of revenue this year. Going forward, Alamos Gold has acquired Turkish assets that are in the advanced development stage and production is projected to begin in 2014.
Even with plenty of success to look back on and a bright future ahead, John realizes that nothing would have been possible without help from a strong group of supporters. “Success is about setting objectives and meeting them. A business succeeds by establishing a plan that benefits everyone involved in an economic enterprise. When the enterprise is up and running – and all the people who participated in its conception, development and operation prosper – real success is achieved. One seldom succeeds alone.” And his support includes not only quality employees, but a loving family, too. “My wife and I have raised four children and they are nice people. I’m proud of that,” he says. “It took a lot of patience and compromise – learning to forgive, recognizing that no one is always right. These are important things in life that supersede any financial success.”
Ernst & Young Entrepreneur Of The Year 2012
19
MInInG and MetalS
René Marion AuRico Gold Inc.
R
ené Marion is a man who knows a thing or two about mining. After obtaining his B.Sc. in mining engineering in 1986, he began an impressive career with several mining companies including Barrick Gold. With the prominent gold producer, Rene was continuously thrown into unfamiliar, challenging situations. He flourished and used these opportunities to learn all he could about not just mining, but business as a whole in a diverse set of cultural environments. René accelerated through the ranks of Barrick, accepting roles around the globe. Ultimately, he was appointed vice president of Russia and Central Asia, then chief operations officer for Highland Gold Mining Ltd. – a partner of Barrick. “Don’t be afraid of stepping outside your comfort zone; embrace change,” says René. “You cannot be successful without doing this. The best leaders always question if they can achieve a goal and the best decisions are made when you are the most scared and know least what the outcomes will be. Take on those risks, because without taking on those risks and expanding your experience base, you will not be able to grow and excel.” Heeding his own advice, in 2007 he could not pass up an opportunity to turn around an underperforming mining company known as Gammon Gold. He made the step to leave Barrick and lead the turnaround of what would eventually be renamed AuRico Gold. René completely revamped management and surrounded himself with a hand-picked core team he knew from years in the mining industry. With a flat management style and a strong management team, AuRico works seamlessly where any member of the core team can step into any position when needed. “Here at AuRico we are a very small team – everybody’s empowered to make the decisions and move forward,” he says. “My key strength is that I believe in a matrix organization where everyone works with each other. There are no silos within AuRico, and with that there comes great confidence in the leaders of the organization and a real sense of urgency within the organization. Without silos we are able to make decisions and take action in a timely manner.” In five short years René and his team have been able to turn a nearly insolvent company to a top 20 industry player.
20
Ernst & Young Entrepreneur Of The Year 2012
BUILDING OUR FUTURE
TOGETHER
110 Yonge Street, Suite 1601 Toronto, ON M5C 1T4 CANADA Tel: (647) 260-8880
www.auricogold.com
I am proud to share this recognition with one of the most talented teams in the mining sector. Through your hard work and dedication, together, we have created a leading company in the industry that boasts a quality portfolio of assets and a solid platform for growth.
MInInG and MetalS
Nick Barisheff
Bullion Management Group Inc.
A
t first glance it seems as though Nick Barisheff has the “Midas touch.” Look a little closer and you will quickly realize that Nick’s success has stemmed from passion, dedication and due diligence.
He started out in the investment real estate world. The entrepreneurial culture allowed him to use creativity to lead his team to be the first to allow individual investors the ability to invest directly in large-scale real estate projects – something that was previously unavailable to individuals. In the late ’90s Nick took time to analyze the economic landscape in an effort to pinpoint the next investment trend. He saw a shift in the financial markets and recognized that hard assets like precious metals were going to become important again. As a result, in 1998 Nick established the Bullion Management Group (BMG). During his research he discovered that there was no way for Canadians to purchase and hold physical gold within an RRSP. He also realized that adding silver and platinum to a gold investment would improve returns and reduce risk. He maintained his philosophy of “Uncompromised Bullion” in all of his investment structures. “I view economic and geopolitical events through the perspective of gold as money,” says Nick. The biggest hurdle he needed to overcome was regulatory approval; he had to convince the Ontario Securities Commission to grant numerous exemptions for BMG’s first mutual fund – BMG BullionFund. The fund was first launched in 2002 and since then BMG has expanded its product offering to include additional mutual funds as well as the direct purchase and secure storage of physical bullion bars. “I believe in expanded thinking over positive thinking,” he says. “This means hoping for the best outcome, but preparing for all potential outcomes so there is always a backup plan.” Nick has made a career of identifying non-existent or poorly understood investment opportunities then developing proper investment strategies, products and services to help protect and increase his clients’ wealth. BMG has a complement of 20,000 investors with its initial three metals fund ranked in the top two per cent of returns out of nearly 15,000 mutual funds over the past decade.
22
Ernst & Young Entrepreneur Of The Year 2012
Cautious optimism 52% of global respondents feel the global economy is improving.
In Canada, confidence in the local economy has more
than doubled.
48% of Canadian respondents are planning an acquisition.
31% of Canadian respondents are planning a divestiture.
T
he sixth annual Ernst & Young Capital Confidence Barometer finds that, despite a favourable deal-making environment, leading global corporations are not yet ready to engage in mergers and acquisitions. Canadians, however, are more optimistic. Of the 1,500 executives surveyed globally, 31% say they expect to pursue an acquisition in the next 12 months – down from 41% in October 2011. In the US, expectations for deal-making are relatively flat, with 34% of companies planning an acquisition in the next year, compared with 36% in October 2011. The story in Canada is significantly more positive. Nearly half (48%) of Canadian participants say they expect to pursue an acquisition in the next 12 months, up from 45% in October 2011 and 32% in April 2011. The number of Canadian businesses looking to sell has also increased, with 31% planning to divest compared with 23% in October 2011. Canadian companies are keen to put their capital to work as they approach their capital agenda with a desire to do more than just sit on the sidelines. Is this an opportunity for Canadians to leap ahead of their global counterparts? M&A fundamentals are stronger than they have been for some time. Credit constraints are lower and corporate cash balances are high, while confidence is rising moderately following a prolonged period of macroeconomic instability. The valuation gap between buyers and sellers is also narrowing.
What is your perspective on the state of the global economy today? Strongly improving
9% 0%
Modestly improving
34% 14% 32%
Stable
34% 25%
Modestly declining Strongly declining
46% 0% 6% Apr-12
Oct-11
While Canadian M&A expectations are ahead of their global counterparts, they are still below historical levels. Why? While Canadian corporate executives are in a more confident frame of mind, particularly compared to the rest of the world and to the US, they are still fundamentally cautious. Persistent market volatility, austerity measures, structural issues (primarily the Eurozone crisis) and potential for slowing growth in emerging markets have continued to fuel conservative behaviour. For the time being, caution continues to impact M&A.
To find out more, please contact Brian Allard, Partner, Mergers & Acquisitions,Ernst & Young LLP, at brian.allard@ca.ey.com.
Ernst & Young Entrepreneur Of The Year 2012
23
BuSIneSS-to-BuSIneSS produCtS and ServICeS
Michael Back
Collective Point of Sale Solutions Ltd.
M
ichael Back is a man who knows how to get things done. When you’re one person chasing a vision, you have to be.
Just over a decade ago he left a corporate executive position to go out on his own and realize his vision of delivering the best payment solutions possible for small and medium-sized businesses. “I’ve always been a good doer,” says Michael Back. “I’ve always been able to see the finish line.”
His determination and vision have brought him a long way, with his company Collective Point of Sale Solutions (Collective P.O.S.) now leading what many view as a mature industry, generally dominated by major banks. To get ahead, Michael focused on innovation and value-added services. Collective P.O.S. made a name for itself by developing innovative, industry-leading payment processing and secure point-of-sale solutions. Collective P.O.S. revolutionized the point-of-sale world by being the first Canadian company to process a retail P.O.S. transaction over a residential grade DSL/cable Internet. They were also able to reduce the time it takes to process an order from two to three weeks, to two to three business days. In an industry where international payment standards cannot be ignored and slim margins are the norm, Michael has managed to develop a profitable company through sustainable growth, healthy growth margins and a focus on innovation that is set for success in the years to come. Collective P.O.S. had to overcome many obstacles to evolve from a niche merchant acquirer into a multifaceted provider of debit and credit processing services and secure P.O.S. solutions to small and medium-sized businesses. Michael realizes all of the success to this point, and the success to come for Collective P.O.S., isn’t just because of him, but because of an entire team that feeds, and helps make his vision a reality. “I look for a cultural fit above anything else,” he says. “I need people who can execute. I need people who can make a decision.” The company has grown to include 80 employees and serves more than 11,000 businesses across Canada. By any measure, Michael and Collective P.O.S. have proved that having a vision and an incredible amount of determination goes a long way to being successful in business. Michael has benefited from years of experience in a world where big financial institutions rule. To future business leaders he says, “Go with your gut. If you’re ever trying to deal, you can’t be scared to walk away.”
24
Ernst & Young Entrepreneur Of The Year 2012
CPOS
DRIVEN TO MAKE IT EASIER & FASTER FOR CANADIANS TO DO BUSINESS.
< < <
P AY M E N T P R O C E S S I N G
Achieving recognition as an Ontario finalist in the Ernst & Young Entrepreneur Of The Year® Awards program is a distinct honour. Our spectacular growth and what drives this company forward is unquestionably a direct result of the expertise, ambition and commitment that our dedicated employees bring to work each and every day. I’d like to thank the entire Collective P.O.S. team for helping me become a finalist. I would also like to say thank you to our loyal customers, our partners and my family for their unwavering support over the years. Together, we’re ALL driven to make it easier, faster and more profitable for Canadians to do business.
Michael Back, President & CEO Collective Point of Sale Solutions Ltd.
CPOS-Ad_EOYProfileMagKpske-0812-FNL.indd 1
1-888-760-4POS [4767]
9/10/2012 4:25:43 PM
BuSIneSS-to-BuSIneSS produCtS and ServICeS
Victoria Sopik and Jennifer Nashmi Kids & Company Ltd.
P
arents, generally speaking, are hard to please. Between them, Victoria Sopik and Jennifer Nashmi have 11 children of their own, so when they opened the doors of Kids & Company a decade ago, they were well prepared for what was to come. Their venture, Kids & Company, is more than your average childcare centre – they cater to the corporate world, a sector that was being ignored by the childcare industry before Kids & Company came along. “What sticks out the most is our quick and successful growth. We have more than 40 centres and almost 1000 employees,” says Victoria. For their venture to be successful, the duo had to convince corporate Canada that their model would benefit their clients in ways no other business could. For Kids & Company to provide superior childcare services, they had to have the right employees, treat them with respect and allow them to grow with the business. This is the area Victoria and Jennifer focused on almost from day one. “The challenge for us was growing, training and engaging a team. We had to create a culture within a growing organization,” says Jennifer. Happy employees provide the best possible childcare services. Recognizing this, Kids & Company provides its employees with special benefits, including complimentary access to emergency childcare services; reduced fees for full- and part-time childcare services; and a supportive and flexible work environment. Both of these women are also incredibly involved in their community. Jennifer is a member of numerous boards and spends much of her limited spare time volunteering with the Unionville Milliken Soccer Club. Victoria is a founding member of Christine Wood Grant Fund for Grieving Children which is connected to Mount Sinai and the Hospital for Sick Children (SickKids), and continues to be an active member with the Canadian Women’s Foundation. Victoria and Jennifer give a lot of credit to their parents for reinforcing strong core values and high standards that are essential to the way Kids & Company is run today. Together, this impressive pair thought outside of the box to create a successful company built on fresh, creative solutions that benefited both their investors and their clients. Their collective advice for budding entrepreneurs: “Be patient, work hard and focus on your goal – success will come. Do your best to maintain the right work-life balance.”
26
Ernst & Young Entrepreneur Of The Year 2012
KEEPING UP WITH THE JONES’ JUST GOT EVEN EASIER. SEE HOW AT OUR AREA STORES. VAUGHAN 905.760.6068
LAWRENCE 416.789.7770
BURLINGTON 905.639.9973
KINGSWAY 416.237.0101
BOLTON 905.951.6145
NEWMARKET 905.836.5356
OAKVILLE 905.845.9935
HEARTLAND 905.501.9406
RICHMOND HILL 905.737.2000
BuSIneSS-to-BuSIneSS produCtS and ServICeS
Ezer Mevorach Mevotech Inc.
A
fter more than 30 years in business, Ezer Mevorach has learned a few lessons about being successful, and number one on that list is to hire the right people and have the right team.
“Surround yourself with great people,” Ezer says. “It takes time. Your core values have to be the same. You want everyone on the same page.” Since 1982, when Ezer and his father first opened the doors of Mevotech in Montreal, the company has gradually grown into an industry-leading aftermarket parts manufacturer in the automotive industry. Part of the reason for Mevotech’s success is Ezer’s approach to management, which is hands-off rather than hands-on. “If you hire talent to manage and grow the business, then let them do it. Our role is to fully engage them in the strategy and core values.” “When an employee is successful, then Mevotech is successful,” says Ezer. This commitment to employee autonomy has been instrumental in attracting and retaining employees along with demonstrating the company’s commitment to diversity.
C
M
Y
CM
MY
CY
Mevotech progressed over the years, growing from a manufacturer and importer to an engineering-based product design company. Focusing in the last five years on a smaller number of product lines, Mevotech was able to pay particular attention to each line’s engineering and quality and reposition the company with a new identity. With products designed in Canada and manufactured in Asia, Mevotech has positioned itself as a forward-thinking, innovative and efficient company that can adapt to the ever-changing automotive industry. Even after 30 years, Mevotech is still a young company competing with businesses that have been around, in some cases, for more than a century. Constant innovation and occasionally looking over their collective shoulder has helped the company stay ahead of the competition despite their size. Mevotech is known as a first-to-market leader in the industry. “I’ve always said it’s good to have a little paranoia,” says Ezer. And for budding entrepreneurs, Ezer has some advice learned over 30 years of ups and downs. “You have to love what you do. Think baby steps and not taking on the world. You can’t think that way.” And above all, “Stay focused, work hard and build the right team.”
28
Ernst & Young Entrepreneur Of The Year 2012
CMY
K
Mevotech-ThankYou-Ad-Sept12-2012.pdf 9/12/2012 8:10:52 PM
C
M
Y
CM
MY
CY
CMY
K
younG entrepreneur
Tara Schlupp and Ho Tek Domus Student Housing Inc.
T
ara Schlupp and Ho Tek are quite the pair. Together, these young entrepreneurs were able to gradually build their fledgling property management company into a market leader by following a simple mantra: offer an exceptional product or service, get the job done and the rest will fall into place. Tara first entered the property management world in 2005 while studying at the University of Waterloo; her landlord offered her an opportunity to rent out five houses in Waterloo. Needing the money to pay for tuition after a European vacation, she jumped at the chance. After she learned the ropes and built her offerings to 200 rooms while working 16-hour days to get things done, she ran into an old high school friend, Ho Tek. He went to Waterloo for what was supposed to be the rest of the rental season and never ended up leaving. Tara is a detail-oriented individual whose strength is in the daily operations of the company. Ho is more of a bigpicture thinker and together they make a formidable team.
“We’ve had many accomplishments to be proud about; one of the greatest accomplishments has been the overall awareness by people within our industry of our company and the great things we’ve achieved,” says Ho. “It’s always amazing to see the reaction on people’s faces when they realize that the two partners of the firm are 29-year-old entrepreneurs.” As the company has grown, Tara and Ho have had to surround themselves with the right mix of staff to keep the company on the positive track. Now with a staff of close to 20 people, Domus has a complement of dedicated and experienced employees who strive for the same consistent quality and results that Tara and Ho expect day in and day out. Tara and Ho have been able to achieve a zero per cent vacancy rate each of the last four years. Presently their portfolio has grown to 3000 rooms. “As a leader you are ultimately responsible for the success and failure of your company,” says Ho. “If you fail it’s your fault and if you succeed it’s your fault. Act, react and analyze so that you learn from the things you’ve done right and wrong.”
30
Ernst & Young Entrepreneur Of The Year 2012
younG entrepreneur
Derek Ting and Jon Lerner Enflick Inc.
F
or Derek Ting and Jon Lerner, co-founders of mobile software company Enflick, their entrepreneurial spirit was realized at a young age. Before they could graduate from the University of Waterloo, they had already set out on their path to business success. “What did I have to work on along the way? Everything,” says Derek. “I had no idea how to run a company when I first started and lacked many of the essential skills. However, I picked them up along the way.” They were young, but these two students, who went on to acquire bachelor’s degrees in computer engineering, had plenty of experience under their belts. Before the duo graduated in 2010 they had completed co-op placements at some of the world’s largest tech companies, including RIM, Apple, Google, Qualcomm and IBM. Their drive to create user-friendly products that push the boundaries of the mobile world led them to develop what was eventually named TextNow. While they had many ideas for projects to pursue, the idea of unlimited SMS was intriguing to them and held a lot of promise with the general public – especially the tween and teen demographic. With Jon as president and chief technology officer and Derek as CEO, the two have formed a successful partnership that has seen their company grow and their products lead the marketplace. To date, Enflick has had over 31 million downloads of their applications. Enflick launched Touch in late 2011 which allows BlackBerry, Android and iOS users to interact seamlessly. Looking toward the future they will continue to focus on innovative applications and products that continue to live up to their never-ending goal of pushing the mobile world to new places. “Success to me is making a significant impact on improving our world and pushing society forward,” says Jon. “That definition hasn’t changed for me over the years but my level of ambition and confidence to make a bigger impact keeps increasing.”
Ernst & Young Entrepreneur Of The Year 2012
31
younG entrepreneur
Ray Cao and Aditya Shah Loose Button
R
ay Cao and Aditya Shah make an outstanding team. Feeding off each other’s strengths, together they are business partners and the co-founders of Loose Button.
Loose Button is an innovative, industry-leading beauty company that sends high-end beauty products to its members on a quarterly basis. Similar to a magazine subscription, members pay a small fee to have a selection of premium trial-sized beauty samples delivered to them – allowing members to try a wide range of products from the comfort of their own home. But success didn’t come overnight. Ray and Aditya had to overcome many obstacles and surround themselves with a qualified and passionate team to help them in their entrepreneurial goals. When Loose Button first started, it was an apparel company, but trusted advice helped them move into the beauty products world. “Chief amongst our strengths would be our ability to recruit incredible talent,” Ray says. “I’m a big believer that it’s all about the people who you surround yourself with who end up helping you get to the end goal. Without each of our existing and previous employees at Loose Button, we would not be anywhere near where we are at this point.” Loose Button is more than a beauty product company, it pays an incredible amount of attention to the small details. Everything from the way the box is designed to the way their member services team speak to members is done in a very careful way. And as much as Loose Button has become an undeniable success story, Ray and Aditya don’t necessarily see it that way. “To us, success of Loose Button as a business alone is not meaningful enough,” says Aditya. “The true measurement of success is going to be based on the number of successful individuals that the company will be able to develop.”
32
Ernst & Young Entrepreneur Of The Year 2012
InForMatIon teChnoloGy
Leerom Segal Klick Inc.
W
hen someone starts a successful business at the age of 12, it’s a pretty good bet that a bright entrepreneurial future lies ahead. Leerom Segal did just that, only four years after moving to Canada without knowing a word of English. By the age of 14, he had replaced an entire IT department after he overheard the CEO’s frustration with the department’s inability to develop a client database. Within a matter of days, Leerom developed the solution himself. And for payment, he simply said to the CEO – his current business partner, Peter Cordy – “Pay me what you think is fair.”
For the next few years he continued to obtain valuable experience, then in 1997, at the age of 17, he started Klick Inc. with two partners. The company was founded with the idea of creating a different kind of professional services company – one that would harness the long-term strengths of its people and its clients, with a commitment to organic growth. Rather than grow by acquisition, under Leerom’s leadership, Klick grew naturally, attracting some of the best people in the business along the way. He constantly gathers information on clients and employees in order to better manage client relationships and develop staff. “Creating a centre of gravity for the best minds in our industry is how I define success – and it’s our ultimate goal. Over the years, we have hired and retained the best talent in the industry. Being surrounded by smarter, more experienced people has intensified my happiness and level of success,” he says. And by paying close attention to the manner in which the company expands, Klick continues to see its fair share of success. The company has grown at an average rate of 30 per cent annually since 1997 and has generated profit every year of operation. Klick Health is now the largest independent digital health-care agency in the world. “I am most proud of the unique culture that we have been able to build at Klick and our addiction to doing things radically different,” says Leerom. “The results speak for themselves: insane organic growth exceeding 30 per cent per annum, profitability in every year since inception and the lowest turnover rate in the industry.” Leerom was recently named to the PharmaVOICE 100, recognized as one of the most influential people in health care.
Ernst & Young Entrepreneur Of The Year 2012
33
InForMatIon teChnoloGy
Harley Finkelstein and Tobi Lütke Shopify
O
nline shopping and e-commerce has come a long way in a few short years. Back in 2006, Tobi Lutke had recently moved from Germany and couldn’t get a traditional job because he didn’t have a work visa. His game plan was to start an online snowboard shop, but he was unable to find the right solution to make it work. At the time the only options were enterprise and auctions. The enterprise solutions made it so retailers had to swallow the cost of an enterprise solution, which could be $100,000 or more. Auction sites were cost effective, but didn’t lend themselves to melding with a stand-alone, scalable business. Tobi decided to write his own piece of software – one that would scale easily and suit his online snowboard venture. A year later it became clear that a snowboard business was a good idea, but a software company was a great one. As a result, Shopify was born, and Harley Finkelstein was one of its first customers. Despite working for a prestigious corporate law firm in Toronto, Harley decided his hunger for risk taking better suited the world of startups. Together the pair have helped Shopify grow from its humble beginnings to be a leader in the world of e-commerce. Their goal is to “democratize the Internet” and provide the best possible solution available for anyone looking to host an online business. “Our model is simple,” says Tobi. “If you have 15 minutes and you’re able to use email, you can build your own online store using Shopify.”
In six short years Shopify has succeeded in becoming an innovator and pushing e-commerce in a way that benefits everyone, but don’t talk to Tobi and Harley about success. “We don’t often use that term, actually. In our experience, ‘success’ tends to be someone else’s definition of achievement,” says Harley. “Ultimately, we just feel really fortunate that we’re able to do what we love every single day.” They recognize Shopify is more than two individuals; it’s an entire team working toward common goals and having a great time doing it. “At Shopify we believe that culture and work environment are two of our competitive advantages,” says Tobi. For individuals looking for a little advice from the pair, they have some simple yet important recommendation: “Do things. Tell people.”
34
Ernst & Young Entrepreneur Of The Year 2012
InForMatIon teChnoloGy
Robert Herjavec The Herjavec Group
R
obert Herjavec is a name recognized throughout North America, partially as a business mogul and partially as a television personality. Whether on screen or off, what you see is what you get: a business-savvy, considerate, positive and energetic man. Coming from Croatia at the age of eight with his family, Robert worked hard to be a success in the computer and technology field. A serial entrepreneur, Robert sold two of his computer-related firms to AT&T and Nokia for hundreds of millions of dollars.
In 2003, he launched The Herjavec Group with the goal of being the pinnacle of information technology services. Now, less than a decade later, the company is widely recognized in the industry and by the general public as being a Canadian icon and business success story. Although, you may have a hard time telling Robert that. “I will let you know when I think I am a success,” he says. “Success is defined in many terms. For me, on a personal level, I am successful. On a business level there is so much to be done. I think the moment you think you are successful is the beginning of the end.” The Herjavec Group is the company it is today because of Robert’s ability to build the right mix of individuals to create an effective team and to keep that team motivated. He leads by example, most days being the first person in the office at 5 a.m. In the ever-changing and competitive technology market, Robert and his team continue to lead because of their dedication to delivering positive results, no matter the challenges put in front of them. “I am by no means the smartest guy in the room, but I am pretty good at figuring out what the situation requires and adjusting to it,” says Herjavec. “My greatest strengths are probably adaptability and resilience. I always believe that the world will not be won by the strong, the weak or the smart, but by those who are willing to get up time and time again and keep going. I am pretty good at keeping going.”
Ernst & Young Entrepreneur Of The Year 2012
35
ServICeS
Christopher Szybbo CBI Health Group
C
hristopher Szybbo didn’t start the Canadian Back Institute (CBI), but he became employed with the company as a physiotherapist in 1990. The owners must have seen something special in Chris, as they promoted him to the role of clinic manager in 1991. There he took over a clinic that had been failing financially for the past five years. Chris couldn’t fall back on his business training to help him – he didn’t have any. Instead he began looking at the clinic from the eyes of the patients and customers. Within two years he had transformed the clinic into the highest grossing and most profitable CBI physiotherapy clinic in the country. “I am strategic, decisive and highly focused on what counts. Throughout my career I have been able to relate to those around me and help create alignment and motivation to our goals,” Chris says. Chris rose through the ranks of CBI, becoming chief operations officer by 1998. That same year the company was sold to an American health-care provider. Within a year Chris was promoted to president. For the next six years Chris focused on building scalable infrastructure, standardizing systems and ensuring quality health care was reproduced at clinics throughout the CBI network. By 2006, the direction of the parent company had changed slightly and Chris felt an independent company would help CBI grow quicker as the leaders of the company could be more closely engaged in the operations. It wasn’t easy, but after five months of negotiations, Chris, sponsored by private equity and together with his management team, took ownership of the company he had been with for so many years. Now, 21 years later, CBI is a leading national provider of rehabilitation and community health-care services, with over 150 sites and 4400 staff. “I am proud that CBI can remain a growth company and deliver solid commercial results and maintain our commitments to core values and high standards for care delivery,” he says.
36
Ernst & Young Entrepreneur Of The Year 2012
ServICeS
Gerald M. Soloway Home Capital Group Inc.
F
or Gerald Soloway and the Home Capital Group, the past wuarter century has been full of accomplishments and milestones. Now, 25 years later, Gerald is an inspiration to budding entrepreneurs. In the early ‘80s Gerald was practicing as a lawyer when he realized there was opportunity to provide lending services to qualified, credit-worthy indivduals who were still being denied mortgage loans from major lenders. In 1986 Home Capital Group was established and acquired Home Savings & Loan Corporation. The company, at the time was made up of only 12 employees,$3 Million in equity and $51 Million in assets. The company was able to largely avoid the negative impacts of the recession in the early ‘90s thanks to prudent lending and management strategies and was soon recognized as a significant player in the financial services industry.
“When I founded Home Capital with my associates, our goal was to fill a gap in the lending landscape and provide financial services to individuals who were qualified but could not access the funds that they needed through conventional sources. I am happy that we were able to meet this goal and have been successful in having over 66,000 mortgage customers on our books and serving a large number of people,” says Gerald. By 1998, the companies assets had increased tenfold since it was first established, surpassing the $500 Million mark. Just a couple of years later the provincially regualted Home Savings & Loan was transformed into the Home Trust Company and Home Capital was then able to begin its participation in the credit card industry. Presently the the success Gerald has been able to generate speaks for itself: Home Capital Group, after 25 years in business, has over 550 employees at six branches. With $869 Million in equity, $18.5 Billion in total assets and a net income projected at over $200 Million for 2012, the future is bright for this Canadian success story. “Stay focused on what you do best,” says Gerald. “Set your goals clearly and be persistent in the pursuit of them, but also be prepared to make adjustments and use the thoughtful advice of others to your advantage.”
38
Ernst & Young Entrepreneur Of The Year 2012
25 Years of Superior Customer Service Being Canadaâ&#x20AC;&#x2122;s leading alternative lender means more than offering innovative products to Canadians. It also means caring about our customers and finding solutions to meet individual needs. Our employees are committed to delivering superior service to every customer, every time.
To learn more about our products and services visit www.hometrust.ca or www.homecapital.com
ServICeS
Jon Hantho Maxxam Analytics
C
ompanies and organizations from a variety of industries across Canada make critical decisions every day based on the analytical services and expertise provided by Maxxam Analytics. With Jon Hantho at the helm and a solid team behind him, if you’re doing business with Maxxam, you’re in good hands. Maxxam was founded in 1969 during a time of privatization of government labs. Over the next 35 years it expanded through organic growth and through a series of mergers. After a merger with a major environmental services company in 2004, the company had stalled with its emphasis focused on operations rather than customers.
Jon was brought on in 2006 as president and CEO to help ready the ship. Before starting with the company, he made the decision to acquire an equity position, illustrating how much he believed in Maxxam and its future. He personally led the senior management team through a detailed process that resulted in new and improved strategies for the company’s four major business lines: the energy, environmental, food and DNA industries. “Self-awareness is my greatest strength – knowing that I don’t have to be the smartest guy in the room at any time, knowing that the sum of the parts is where the best outcomes are found and knowing that it’s never about me,” he says. “Recognizing my strengths and weaknesses and embracing both openly – for all to see – has allowed me to remain authentic.” In 2008, when Maxxam Analytics was acquired by OMERS Private Equity, Jon jumped at the opportunity to further invest with the company. Under Jon’s leadership Maxxam Analytics grew from 1200 to 2200 employees between 2006 and 2011. The vast majority of Maxxam’s growth has come from new business and service lines developed internally. “Success in business is about embracing the challenges and opportunities with an intelligent mix of passion, purpose and execution. To do this, you need to love what you do, believe in what you’re trying to accomplish and have the resolve and resilience to make it happen,” he says. “The real test is to get others on the same page and that’s where you need to refine your communication and relationship management skills with all audiences: investors, employees, partners and customers.”
40
Ernst & Young Entrepreneur Of The Year 2011
ServICeS
Lori Lord
Spectrum Health Care
L
ori Lord is well known throughout Ontario’s health-care industry as an advocate, innovator and tenacious leader. After a career as a registered nurse in Kingston, Ontario, Lori joined Spectrum Health Care in 1981 as the director of health care services. By the mid ’90s, Lori’s strong leadership skills and passion for home care advanced her into the role of chief operations officer, and eventually chief executive officer. Lori states, “I believe that the three key strengths that have been the drivers of my success are my people skills, operational skills and leadership skills. Together these skills have been instrumental in shaping my career in operating Spectrum Health Care. Along the way I have had to work on learning to adapt to operating a rapidly growing business. I am continuously learning to incorporate new and innovative solutions to face challenges and seize opportunities that come with this business level.” In 2010, Lori and the then chief financial officer were presented with the opportunity to acquire Spectrum Health Care. Despite personal and financial risks, she jumped at the chance to own the company she had built into an outstanding success. “Becoming the owner of Spectrum Health Care has been one of my greatest accomplishments. It has truly been a privilege to be part of Spectrum Health Care’s journey from its infancy to where it is today; and to be in a position to continue to shape the growth and further development of Spectrum Health Care is a responsibility that I am both proud of and take very seriously.” Looking to the future, Spectrum Health Care is committed to remaining a leading and innovative home-care provider by exploring different technology initiatives and services that will strengthen patient-centred care, and result in better outcomes.
42
Ernst & Young Entrepreneur Of The Year 2012
NursiNg | Home support | HomemakiNg | Foot Care | Corporate WellNess www.spectrumhealthcare.com
For over 35 years, Spectrum Health Care has been a leader in providing quality home care services across the province of Ontario. It is our mission to link the passion of our people to the quality of our services. I would like to take this opportunity to thank Spectrum Health Careâ&#x20AC;&#x2122;s dedicated employees who have and continue to provide quality services to our Clientâ&#x20AC;&#x2122;s. Your efforts and contributions have been the key component in all of our achievements. I would also like to thank our community partners for their support and commitment to Spectrum Health Care. I look forward to our continued success and growth. Sincerely, Lori Lord
TOrONTO Office address: Mississauga Office address: spectrum Health care spectrum Health care 2 Bloor street east, suite 1200, 1290 central Parkway West, suite 302, Toronto, ON M4W 1a8 | Tel: (416) 964-0322 Mississauga, ON L5c 4r3 | Tel: (905) 272-227143 Ernst & Young Entrepreneur Of The Year 2012
MedIa and entertaInMent
James and Michael Schmalz Digital Extremes Ltd.
V
ideo games. It’s all about video games. For brothers, James and Michael Schmalz, it always has been and it always will be. Together the pair are founders of Digital Extremes, an absolute icon in the video game industry. With an interest that began back in their high school days, the brothers have always been obsessed with making the best video games possible. James, the gifted developer, has had success almost from the beginning; just after he graduated from university he developed Epic Pinball, which went on to be immensely popular. As the industry progressed to include a greater focus on console games, Michael, an entrepreneur already, joined James as the company continued to grow. “In 20 years the video game industry has grown in ways we couldn’t have imagined,” says Michael. “Our passion is still there, we still love what we do.” After pinball, Digital Extremes went on to revolutionize the industry with an action/shooter game known as Unreal that became the industry standard; the Unreal series ended up selling 12 million units. Unreal Tournament followed in 2000 selling two million units on its own. From there the hits kept coming and Digital Extremes has gone on to develop or contribute to such massive hits as Bio Shock, Homefront and many others. With the success came company growth; in the early days Digital Extremes had a staff of less than 20. Today, it has a complement of 197 employees from 30 different countries working in one place and developing some of the most highly-rated AAA games sold worldwide. In just over two decades the Schmalz brothers have had plenty of successes and learned a lot from the ever-changing video game industry. For those who are looking to follow in their footsteps, Michael gives this advice: “It’s hard. No one is going to give you anything for free. Be prepared to fail and always try to have a backup plan.”
44
Ernst & Young Entrepreneur Of The Year 2012
MedIa and entertaInMent
David Fortier and Ivan Schneeberg Temple Street Productions
D
avid Fortier and Ivan Schneeberg are two gutsy guys. Before they ventured into the TV production world, they were both successful entertainment lawyers working at a prominent law firm in Toronto. One day, they both resigned together and set out on a new journey. Their goal was to build a business that would engage the best in Canadian talent and make television that would speak to the international marketplace. In 2006 Temple Street Productions was formed to pursue that very goal. Now, six years later, their dream has become a reality. Of course, at times it has been an uphill battle. They didn’t know anything about producing quality television, but they recognized that and surrounded themselves with the best people they could find. They learned from these individuals, and at the same time an atmosphere of respect developed. “We don’t believe in regrets. We made an entire television series, Being Erica, consisting of four seasons and almost 50 episodes about how you can’t harbour regrets or let your failures hold you back. Every entrepreneur has to believe, deep down, that failure is the truest path to success. Everything we’ve done wrong has taught us something and ultimately made us better,” says David. With over 400 production companies in the country, it takes an exceptional organization to make a name for itself. Temple Street Productions has found success in large part because of their collective attitude and how they approach each project. “In our experience, most successful entrepreneurs share certain strengths: tenacity, resiliency, fortitude, vision and leadership. We like to think we have some of these qualities. We also try to set a really high standard,” says Ivan. “We try to push ourselves and those around us to work as hard as possible, to make the best content we can possibly make and to be the best we can be – which is ideally better than our competitors.”
Ernst & Young Entrepreneur Of The Year 2012
45
MedIa and entertaInMent
Allen Lau and Ivan Yuen Wattpad
A
decade ago Allen Lau was trying to solve a problem: how can he read while he was on the go? He took it upon himself to code a mobile reading app for his cellphone, but with limited text and a small, grainy screen, it wasn’t a great experience. The market wasn’t ready for his idea.
Only a few years later in November 2006, Allen was leaving his position with a wireless company and noticed how far technology had come. He resurrected his mobile reading app and started coding again. In an amazing coincidence Allen’s friend, Ivan Yuen, was living in Vancouver and texted him out of the blue. Ivan was also working on a mobile reading app and corresponding website where people upload and share content. Allen was soon on a plane to meet with Ivan to discuss what turned out to be a shared dream – Wattpad was soon born. “Wattpad is a community of readers and writers connecting through stories.” Since its inception five years ago, Wattpad has amassed a 10,000,000 person user base. “Success is more than just revenue or the amount of cash in the bank,” says Allen. “While these numbers are all important, making a positive impact in the world is even more important. Over the years, I have witnessed first hand how Wattpad has positively changed people’s lives. Parents are telling us how we help their children to improve their grades. People from Africa are telling us how Wattpad helps bring written words to their countries. Undiscovered writers are telling us their works would be collecting dust if Wattpad did not exist. The list can go on and on.” The passion Allen and Ivan clearly have holds true throughout the staff. Each employee is engaged and excited to be part of a groundbreaking company. Wattpad even holds regular Lunch ’n’ Learn sessions to keep employees informed on company goals, industry trends and to share knowledge. Everyone has a voice; everyone is in the loop. Allen, Ivan and their team continue to create their own path – growing a successful company and online community all on their own terms. Their advice for up-and-coming entrepreneurs: “Be flexible, except with your principles.”
46
Ernst & Young Entrepreneur Of The Year 2012
Joseph L. Rotman, O.C., LL.D. Lifetime achievement We’re proud to present the 2012 Ernst & Young Entrepreneur Of The Year Lifetime Achievement award to Mr. Joseph L. Rotman, O.C. Mr. Rotman launched his business career in 1962, and in the ensuing 50 years has been involved in establishing numerous private and public companies in oil trading, petroleum distribution, oil and gas exploration, merchant banking, real estate and venture capital. He is currently the Chairman of Roy-L Capital Corporation, a private family investment company, and the founder of merchant bank Clairvest Group Inc., where he continues to serve as a member of the board. Mr. Rotman has generously contributed his business knowledge and experience to the advancement of life sciences research in Canada, the development of the country’s innovation, and commercialization capacity and related public policy. His five decades of business success, leadership and generous philanthropy have enriched Canada and improved untold lives. His achievements and contributions are an inspiration for generations of Canadians. The Ernst & Young Entrepreneur Of The Year Lifetime Achievement award is about more than just recognition. It’s about moral philanthropy — a priceless giving that encourages and inspires others. It celebrates the kind of public mentorship needed to continually renew Canada’s business ecosystem by spotlighting business and community leadership at the highest level.
© 2012 Ernst & Young LLP. All Rights Reserved.
You can fly. Can you soar? We’ll help.
When entrepreneurs spread their wings, they take us all to new heights. And for nearly 20 years, we’ve proudly celebrated their achievements. Learn how we empower entrepreneurs at ey.com/ca/EOY. Follow us on Twitter @EYCanada.
See More | Growth
National sponsors
Ernst & Young is a proud supporter of