CANADIANSME ISSUEE 9 AUGUST 2019
Empowering Canadian Small & Medium Businesses
10
SMALL BUSINESS CHAT
HELPING CANADIAN SMES GROW-HILARY ZABORSKI
SMB Customer Segment Lead for Microsoft Canada
PAGE 38
CLOUD
BEST CLOUD SERVICES FOR SMALL BUSINESSES PAGE 14
EXCLUSIVE INTERVIEW
PAYPAL CANADA FINDS THE PERFECT BALANCE FOR SME CUSTOMERS PAUL PARISI President, PayPal Canada
PAGE 24
BUSINESS TALK WITH BRIAN WEINER
Vice President and Head of Product for Visa Canada
PAGE 26
ROLA DAGHER THE FACE OF CISCO CANADA President – Cisco Systems Canada PAGE 26
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WELCOME CanadianSME is proud to present its August issue. We couldn't be more happier with the positive feedback we've received along with the growth of our network. Small and medium-sized businesses play a crucial role in the success of Canada's economy, and we strive to provide them with all the resources we can on their path to success. This month's issue is no different as we continue to work harder than ever to provide you with the scoop on the latest business trends. One of the most critical aspects that contribute to the success of a Business is their marketing strategy. Marketers are often underestimated for the value they can offer to SMEs. CanadianSME understands just how much marketers bring to the table when it comes to helping businesses grow. This month, we've included Canada's Top 25 Marketers which we have carefully put together after thorough research. We believe that marketers need to get the right support and recognition for the value they bring to Canada's business industry. With this being said, that's why we've made it our responsibility to share their impact on Canadian SMEs. Additionally, this month's interviews are based around some of the most inspiring leaders who are shaping Canadian businesses. With some of the top leaders in the industry such as Vistaprint Marketing Manager Cabral Thomas, Managing Director of myWorld Canada James Malliaros and PayPal Canada President Paul Parisi, we hope they inspire future leaders to succeed and contribute towards the growth of Canadian SMEs. We are also proud to feature some very inspiring women in this month's issue such as President of Cisco Systems Canada Rola Dagher; Sheri Somerville from the Atlantic Chamber of Commerce, Nancy Wilson, CEO and founder Canada's very first Women's Chamber of Commerce; and our business women of the month, Ritu Kohli-Sethi from the Greater Toronto Executive Center. Of course, CanadianSME would not be as successful if it wasn't for its Contributors who take time to share their knowledge through resourceful articles. This month, our contributors include Silvia Pencak who talks about the 5 Priorities for Building a Solid Business, Paul Struther discussing the 4 Small Business Money Saving Myths and Jason Pinchoff with "How to Survive the First Year in Business." We are also excited to include the ten excellent Cloud Services for Small Businesses. We hope our August issue will provide you with intriguing and inspiring articles that will help you in your journey of entrepreneurship. Thank you for your continuous support and happy reading! Thanks for your support!
Thanks for your support!
CANADIANSME Empowering Canadian Small & Medium Businesses
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Contributors Rola Dagher Silvia Pencak Grace Nasralla Kirk Simpson Sheri Somerville Nancy Wilson Paul Parisi Brian Weiner
Jim Harris J. Denise Castonguay Jason Pinchof Ritu Kohli-Sethi Vicky Boudreau Marie-Noelle Hamelin Daniella Macri James Malliaros Hilary Zaborski
Paul Struthers Cabral Thomas Janet De Silva Laura Williams Josh Zweig Dan Kelly Armando Iannuzzi
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Regulars
CONTENTS
08 09
48
SMALL BUSINESS
Small business is everyone’s business: Dan Kelly President & Chief Executive Officer-CFIB
13 14 20 31 34
10
EXCLUSIVE INTERVIEW
35
President – Cisco Systems Canada
44
ROLA DAGHER-The face of Cisco Canada
24
BUSINESS CHAT
Coast Capital Savings and OnDeck Canada Announce Small Business Partnership
WOMEN ENTREPRENEURSHIP
5 priorities for building a solid business 4 Major Characteristics for a Promo Video Ad
CLOUD
10 Best Cloud Services for Small Businesses
MARKETING
Canada's Top Marketers
BOOK REVIEW
How to Survive the First Year in Business
INSIGHTS
Insights from Bicom's leaders
SMALL BUSINESS Four small business moneysaving myths HR LAW
Data shows that HR law non-compliance is rife across Ontario. Here’s why it matters
PayPal Canada finds the perfect balance for SME customers Paul Parisi
President, PayPal Canada
16
Advocating business development in Atlantic Canada Sheri Somerville
Chief Executive Officer Atlantic Chamber of Commerce
40
Inspiring marketing development with Cabral Thomas Canada Market Manager-Vistaprint
38
SMALL BUSINESS CHAT Helping Canadian SMEs grow Hilary Zaborski SMB Customer Segment Lead for Microsoft Canada
CONTRIBUTORS:
ROLA DAGHER
SHERI SOMERVILLE
NANCY WILSON
PAUL PARISI
BRIAN WEINER
Chief Executive Officer, founder of Canadian Women's Chamber of Commerce
President, PayPal Canada
Vice President and Head of Product for Visa Canada
DAN KELLY
JANET DE SILVA
JAMES MALLIAROS
HILARY ZABORSKI
Disruptive Innovation Thought Leader & Keynote Speaker
President & Chief Executive Officer-CFIB
President & CEO of the Toronto Region Board of Trade
Managing DirectormyWorld Canada
SMB Customer Segment Lead for Microsoft Canada
JOSH ZWEIG
CABRAL THOMAS
J. DENISE CASTONGUAY
President – Cisco Systems Canada
JIM HARRIS
Chief Executive Officer Atlantic Chamber of Commerce
Canada Market ManagerVistaprint
PAUL STRUTHERS
SILVIA PENCAK
Founder of LiveCA
Executive Vice President and Managing Director of Sage Canada
President, WBE Canada
RITU KOHLI-SETHI
ARMANDO IANNUZZI
LAURA WILLIAMS
MARIE-NOELLE HAMELIN
Operations Manager at Greater Toronto Executive Centre
Tax Partner at KRP
Founder, Williams HR Law
Founder, CEO of Canada Gives
President, General Manager and Founding Partner
VICKY BOUDREAU CEO and Founding Partner
NEWS GOVERNMENT HELPING SMALL BUSINESSES INNOVATE THROUGH PROCUREMENT PROGRAM
Winnipeg-based small company first to reach milestone in Innovative Solutions Canada program
As the single-largest purchaser of Canadian goods and services, the Government of Canada is helping small businesses innovate and bring their innovations to market thanks to Innovative Solutions Canada, a program that invites Canadian small businesses to develop innovative solutions to address government challenges. Since the program's launch in December 2017, a number of small Canadian companies have received funding to develop their proof of concept. Winnipeg-based CEMWorks Inc. is the first company to successfully proceed to the second phase of the program. CEMWorks will receive up to $1 million over two years to refine its prototype for incorporating frequency-selected engineered surfaces technology into the design of connected vehicles. This technology will help manage radio interference coming from other vehicles and the surrounding area, including buildings, making connected cars safer and more reliable for Canadians. The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced that the Build in Canada Innovation Program will now be the $40-million late-stage testing stream within Innovative Solutions Canada. The testing stream looks to help Canadian companies of all sizes get their products/services to market. It involves buying pre-commercial products/services, trying them in real-life settings and providing the companies with valuable feedback. SOURCE Innovation, Science and Economic Development Canada
MINISTER NG ANNOUNCED INVESTMENTS IN WOMEN ENTREPRENEURS AND MET WITH SMALL BUSINESS OWNERS IN MONTRÉAL Canada's Minister of Small Business and Export Promotion shared how the federal government is helping small business owners start up, scale up, and access new markets Small businesses make up 98% of all Canadian businesses and employ 8 million hard-working Canadians from coast to coast to coast. They are the backbone of our economy and critical to the middle class. This week, the Honourable Mary Ng, Canada's Minister of Small Business and Export Promotion, was in Montréal to meet with entrepreneurs and small business owners to talk about the ways the Government of Canada is supporting their success. On July 10, Minister Ng announced an investment through the WES Ecosystem Fund of up to $3.2 million in École des entrepreneurs du Québec, an organization that develops entrepreneurial skills by providing an accessible, innovative, and collaborative learning environment. On July 11, Minister Ng met with local small business owners and entrepreneurs to discuss how the government is helping businesses scale and get export-ready. She also moderated a StartupFest panel discussion with Harley Finkelstein, COO of Shopify, where they discussed Canada's business-friendly ecosystem and the ways the government is supporting entrepreneurs as they turn their innovative ideas into businesses. SOURCE Innovation, Science and Economic Development Canada
The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced that the Build in Canada Innovation Program will now be the $40-million late-stage testing stream within Innovative Solutions Canada.
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On July 11, Minister Ng met with local small business owners and entrepreneurs to discuss how the government is helping businesses scale and get export-ready.
LET US HELP YOUR SMALL BUSINESS GROW. Meridian can help you get the most out of a Canadian Small Business Financing Loan. We’ll guide you through the process to secure up to a million dollars in loans and get you the best terms – like a higher leverage rate and limited personal guarantee. Connect with a Meridian Business Advisor today at meridiancu.ca/Small-Business ™Trademarks of Meridian Credit Union Limited.
COAST CAPITAL SAVINGS AND ONDECK CANADA ANNOUNCE SMALL BUSINESS PARTNERSHIP Agreement between leading financial services companies brings game-changing online lending option to Canadian small businesses businesses online. Since inception, OnDeck Canada has originated over CAD $440 million in funding to small businesses in Canada. "By partnering with OnDeck Canada, Coast Capital is now able to offer a seamless member experience that is both fast and incredibly easy," explains Derek Turner, Head of Small Business, Coast Capital Savings. "As a purpose-driven and member-owned federal credit union, we are in a unique position to help small business members improve their financial wellbeing. Today's announcement is an integral part of our always expanding offerings for our existing and future small business members that will see new and innovative products and services brought to market to serve this very important segment."
NEIL WECHSLER C E O O F O N D E C K C A N A DA
MONTREAL and SURREY, British Columbia, July 11, 2019 /CNW/ -Coast Capital Savings, Canada's largest credit union by membership, and OnDeck Canada, a leading online lender to Canadian small businesses, today announced an innovative partnership aimed at accelerating online lending to Coast Capital small business members.
Beginning this month, Coast Capital Savings (Coast Capital) small business members can apply for term loan financing from OnDeck of up to CAD $250,000 online, in branch or through the Coast Capital Contact Centre and receive approval and funding in as little as one day. The agreement is aimed at bridging a gap in small business credit in Canada by addressing the urgent needs of Canada's small business sector for faster short-term financing. The partnership with OnDeck Canada will help Coast Capital as they expand nationally, positioning the credit union as a leader in small business banking with a best-in-class suite of products and services. OnDeck Canada is part of OnDeck Capital, Inc., (ONDK), the world's leading online small business lender. OnDeck pioneered the use of data analytics and digital technology to make real-time lending decisions, delivering funds rapidly to small 8
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With Canadian small businesses representing 98 per cent of businesses nationally, the partnership with OnDeck Canada aims to bolster the credit union's ability to fully support a vitally important portion of the economy that has traditionally been under served in the financial services industry. "When small business owners need financing, time is of the essence," said Neil Wechsler, Chief Executive Officer, OnDeck Canada. "Historically, small businesses were unable to obtain time-sensitive funding due to offline processes, lengthy application timelines, and manual review approaches to small business lending. As the proven leader in online small business lending, OnDeck Canada is delighted to partner with Coast Capital to offer online financing to its small business customers, ensuring that their unique and ever-evolving needs are met faster than ever with the power of automation and a world class digitized customer experience." "As the financial services industry evolves to respond to increasingly sophisticated customer needs, financial institutions are increasingly partnering with experienced technology providers to help bridge the gap for customers," said Mr. Turner of Coast Capital Savings. "With Coast Capital's expansion beyond provincial borders, partnerships with technology-forward organizations, like OnDeck Canada, will continue to play an increasingly important role in the credit union's ability to deliver the Coast Capital experience that so many members already enjoy, to even more people across Canada."
About OnDeck Canada OnDeck Canada has originated CAD$440 million in small business funds nationally since inception. Today, OnDeck Canada offers a wide range of financing products including, term loans, lines of credit, and merchant cash advances, customized to the needs of small business owners throughout Canada. For more information on OnDeck Canada, visit www.ondeck.ca.
WOMEN ENTREPRENEURSHIP
5 priorities for building a solid business By Silvia Pencak, M.A. No matter how your business is set up, whether your footprint is regional or global, chances are we all face similar challenges – peoples challenge. In order to build strong organizational structure or a company, you must focus on people. Focusing on product or process will only work if you have your entire production fully automated and people don’t need to touch any part of it. No matter what level of automation you have in your company, chances are you still hire people to oversee the technology. Let’s look at the core foundation of building a strong business or organization with a focus on team building.
1.
Make culture matter
Every company is different. For some, team relationships are the priority, for others it’s the customer experience. It’s crucial that everyone who comes to the interview understands your culture and can align with it. Those who are part of your team must know, understand and act according to the values and company culture. In spite of all the articles out there discussing the importance of culture, it still amazes me how little emphasis some companies give to creating and communicating their values. As leader, your team is a reflection of your leadership skills - be quick to call people out when they break or bend company values. Hold people accountable and be quick to take action if necessary.
2.
Make performance matter
Every company should have measurable standards they regularly check. What are the roles and responsibilities? What is expected from each individual on a team? What are the individual and team goals? What is considered a minimum requirement? What would exceptional performance look like? What is considered unacceptable? Without such standards you leave it up to each individual to set their own requirements, which might be very different from what you envision. Don’t leave it to chance for people to know what is expected of them. Communicate it and check it. As Louis V. Gerstner, former CEO & Chairman of IBM famously said, “people don’t do what you expect, but what you inspect.” Be intentional about individual, team and company performance and you will see the improvement. Let it slide and you will regret it in the long run.
3.
Make teams matter
I strongly believe in teamwork. My best results were created in collaboration and partnership with others, never alone. When teams are healthy, work become easier, results are multiplied and people are well supported. To build healthy teams, you need to recognize great team players, their individual strengths; support team diversity and act quickly when there is drag or leak in values or performance. Teams are fluid. People change. As a leader you must keep your finger on the pulse of your team. Know what challenges they are facing and understand when they need additional support or a break. Recognize that individual strengths change and grow – sometimes it’s a recalibration within the team that’s needed. Celebrate their victories. Be willing to take action when a specific team member drags the entire team down. Make teams in your organization matter. 4.
Make communication matter
It’s hard to be a part of the team when communication is broken. When people don’t have access to the necessary information or channels to request it, it can be extremely frustrating. Set standards in this area. How quickly should emails be answered? How quickly should the resources be provided? What is the standard you expect when it comes to customer relations? How are the meetings scheduled and who is invited? What happens when people don’t show up or don’t provide the information necessary? Communication is key. Your focus should be on its continuous improvement. Have standards in place and communicate them well. Resolve any challenges as quickly as possible. Small misunderstandings can turn into major conflicts when they aren’t discussed.
5.
Make relationships matter
People are complicated and unpredictable. They make mistakes, disappoint, underdeliver, frustrate and even betray you. Nobody is perfect, including you, which makes relationships challenging. Yet, good relationships make things so much easier. People will go above and beyond for those they have good relationships with. When you make relationships the focal point of your leadership, you will win this game. Know your people, get to understand their struggles, life situations, know what they care about and what motivates them. Great leaders don’t treat everyone the same. They treat people according to where they are and what their needs are. They build relationships with individuals and foster relationships on a team. On the other hand, leaders protect those relationships and act quickly when these relationships are threatened or start deteriorating. Cultivate a culture where people are free to be themselves and rewarded for supporting each other.
SILVIA PENCAK
President, WBE Canada
Silvia Pencak is the President of Women Business Enterprises Canada Council (WBE Canada), Canadian nonprofit organization dedicated to facilitating relationships between Canadian women-owned businesses and large corporate and government organizations across North America. WBE Canada promotes the economic advancement of Women Business Enterprises (WBEs). As a quality third-party certifying body of Canadian businesses that are 51% owned, managed and controlled by women, WBE Canada has been connecting them to large supply chains since 2009. To learn more about their initiatives, visit www.WBECanada.ca. You can connect with Silvia directly on Twitter - @SilviaPencak.
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EXCLUSIVE INTERVIEW
Describing herself as a proud Lebanese and grateful Canadian, Cisco Canada’s President Rola Dagher appreciates every part of her journey - the journey that led her to Canada and provided her with every opportunity to make something of herself. Dagher began her career in technology 30 years ago and her focus on customers, people and leadership continues to define the leader she is today – a servant leader. She believes that to serve your customers you need to serve your people, the common denominator for success. This is what drew her to Cisco in 2017; the unyielding focus on customers, the culture of putting people first and the engrained values of giving back. And, at the heart of all this is technology – the foundation for all that we do, the catalyst for economic development in Canada and the driver of human progress.
ROLA DAGHER THE FACE OF CISCO CANADA
President – Cisco Systems Canada
Image credit: Cisco Canada
At Cisco Canada, Dagher’s focus starts and ends with creating the best place to work for employees. She truly believes that in the digital age an empowered, inspired, inclusive, diverse and adaptable workforce is fundamental to any company's success. She also believes that through the power of technology, we can build a bridge between hope and possibility in Canada and in the world.
EXCLUSIVE INTERVIEW
TO MAKE IT EASIER FOR BUSINESSES TO INNOVATE AND BUDGET AT THE SAME TIME, WE ALSO OFFER THE CISCO EASY PAY PROGRAM, WHICH LETS BUSINESS OWNERS BUNDLE TOGETHER HARDWARE, SOFTWARE, AND SERVICES INTO A SINGLE, FIXED MONTHLY PAYMENT, WITH THREE-YEAR 0 PER CENT FINANCING.
Cisco Canada has built a reputation of having some of the most advanced and innovative technologies within the country. Can you tell us about some of the strategies you use that keeps Cisco innovative in the business industry? Cisco has a long history of innovation in Canada. In addition to having R&D offices in Vancouver, Calgary, Kanata and Montreal, we also encourage our employees to explore how they can innovate internally, which has lead to several successful technology patents in security, AI, collaboration technologies, and software-defined networking. We also invest in startups through the Cisco Canada Innovation Program, where we work with entrepreneurs – which includes helping them uncover new opportunities, direct investment and mentorship – to develop and innovate new technologies. We’ve also made significant investments in academic research programs with Canadian universities developing new technologies in 5G, IoT, AR/VR and data analytics. Another key aspect that keeps us innovative is the work we do with our partners – harnessing the best of their expertise and capabilities around industry solutions, and combining it with our own knowledge and networks. All of this really comes together in our Cisco Innovation Centre, which brings customers, partners, entrepreneurs and academics together to create, test and refine leading-edge technologies. Cisco is known worldwide as being the leader in IT and networking solutions. Why do you believe that is? For more than 20 years, we’ve been the trusted IT partner for customers all over the world, and we truly believe the secret to this success has been our boldness to disrupt not only the industry, but ourselves. The network is the foundation of any IT system; and today it needs to be more intelligent than ever. While other large IT companies have
struggled to adapt to major technology shifts, we’ve not only embraced it at Cisco, we’ve pioneered many of these disruptions, from intelligent wireless systems – Wi-Fi6 and 5G, SDN, multi-cloud, next-generation data center systems – to the use of AI in nearly all aspects of computer networking. Cisco has spearheaded the digital transformation journeys of our customers, unleashing the power of the network and the internet to evolve how companies do business. How can Cisco help entrepreneurs grow their business? What tools and resources does Cisco provide that business owners benefit from? We built our small business tech portfolio with the needs of today’s entrepreneurs at the core: simple, reliable, secure and affordable technologies that just work. This includes cloudbased networking, voice and video meeting platforms, and cloud-based security solutions that transform how businesses connect, communicate and collaborate. Because all of these products are hosted in the cloud, our customers incur a low, monthly subscription cost that’s more manageable for most small businesses to maintain, as opposed to paying for everything up front. These drive competitive differentiators, like an enhanced customer experience, increased productivity and less employee downtime. To make it easier for businesses to innovate and budget at the same time, we also offer the Cisco Easy Pay program, which lets business owners bundle together hardware, software, and services into a single, fixed monthly payment, with three-year 0 per cent financing. We also offer a robust online community, connecting entrepreneurs directly with our product team and peer experts. The Cisco Customer Connection gives business owners the opportunity to discuss product roadmaps, influence product direction, participate in early adopter trials, get advice and share expertise around Cisco technologies.
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EXCLUSIVE INTERVIEW
Cisco offers a wide-range of products for business owners. What would you say is your most popular product for small business owners? Small business owners want a solution that’s easy to deploy and manage, so they can free up more time to focus on their customers, innovation and growth. We have several solutions that are popular for entrepreneurs, including Meraki, our cloud-based tech portfolio for networking; Umbrella for simple security; and WebEx for collaboration. We’re helping small business owners overcome many of their traditional IT hurdles, all within a best-in-class secure environment. Companies are now investing in security measures to protect their data and customer information. What can you tell us about some of the IT security solutions that Cisco provides to businesses to protect them from fraud and privacy risks? Our focus is on providing our clients with solutions that protect their data from source to destination. We know for cybercriminals, privileged information (like customer and corporate data) is the digital currency they’re most interested in exploiting, which is why we’ve put our efforts into developing an integrated security portfolio focused on preventing fraud where it happens: email, the cloud and through unsecured endpoints (this could be any device, like a laptop or phone, that connects to your network – even remotely). Our solutions protect against attacks and malware that can lead to data loss and device manipulation. Most importantly, the entire portfolio is underpinned by Cisco Talos, the industry’s most advanced threat intelligence organization, which blocks over 20 billion threats a day. Our Talos team protects people, data, and infrastructure from existing and developing threats.
"TECHNOLOGY IS A BRIDGE THAT HAS ENABLED US TO COLLABORATE AND CONNECT WITH PEOPLE ACROSS THE WORLD, LEADING TO NEW INNOVATIONS THAT CAN CHANGE OUR WORLD FOR THE BETTER."
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You have over 25 years of experience in the technology industry. In your expert opinion, what has been the most innovative discoveries in the tech industry that has revolutionized the business industry? Technology has moved from being a cost-centre to a disruptor that has facilitated human progress. We see this in how it has revolutionized the healthcare sector, breaking down barriers and improving patient outcomes. There are facial recognition apps to help better diagnose mental illnesses and innovations to improve heart transplantation procedures – including better tissue matching and expanding the distance a donor heart can travel – by using
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technology-enabled iceboxes to monitor and keep the donor heart beating. Technology is a bridge that has enabled us to collaborate and connect with people across the world, leading to new innovations that can change our world for the better. How do you believe your previous experience has prepared you for your current role as President of Cisco Canada? I’ve had responsibilities in sales for most of my career – working with small business, and across the public and the private sectors. It’s helped me identify where there are opportunities for growth and disruption, as well as how to be a better leader when it comes to driving growth in challenging environments. I’ve also learned the importance of emotional intelligence and understanding how to be in customers’ shoes, which has helped me to not just be a salesperson, but a trusted business advisor. You’ve built quite a reputation as a sales leader through your great leadership skills. What are some of the strategies you refer to when it comes to leading a team to be successful? Diversity of thought doesn’t often get discussed when talking about building a successful team, yet I consider it to be the foundation of an innovative and adaptable workforce. This means I’m going to look at more than just a person’s education. Emotional intelligence and adaptability are just as important as someone’s IQ. They’re the intrinsic qualities that inform who you are, how you approach challenges and people – and success relies on your ability to adapt to change and connect with people. Degrees are important, but they’re part of a larger equation. Willingness, hunger, drive, determination and adaptability are the qualities that really give people and teams a competitive edge. On a final note, what was the best advice you received in your professional career that contributed towards your professional growth? I’ve received a lot of good advice over the years: Don’t take anything personally; Follow through on every commitment that you make; Be impeccable with your words; Don’t make assumptions. But the piece of advice that’s really stuck with me has been to always be you, everyone else is taken. It’s a lot easier to grow and be successful when you are your most authentic and genuine self.
KIRK SIMPSON CO-FOUNDER OF WAVE
Co-founder and CEO of Wave, a financial planning platform for small business owners, Kirk Simpson is as innovative as they come. Passionate about helping startups grow and reach their full potential, he’s making it his mission to provide small business owners with the resources and funding they need to grow.
4 MAJOR CHARACTERISTICS FOR A PROMO VIDEO AD By Grace Nasralla, Ontario Small Business Network (OSBN)
Have you noticed the rise in camera and video use in the past few years? Yes, that is a fact that marketers cannot ignore as they design and implement their marketing strategies, and it is an element that will rule in advertising for years to come. Here are 4 objectives that make promo videos popular as businesses choose their marketing tools and vehicles. 1. Kirk Simpson is no stranger to the struggles that entrepreneurs face when it comes starting a business. In fact, he has started his own round of successful startups. Therefore, he can fully relate to what being an entrepreneur is and what it takes to reach success. Strong believer that reducing and eliminating office administrative tasks can contribute towards the growth and productivity of entrepreneurs, Kirk Simpson works with his team to find innovative solutions to do just that. He co-founded Wave with fellow business partner James Lochrie in 2009 in Toronto, Canada in the hopes of building a strong online platform to help small business owners reach their full potential. Since it went public a decade ago, Wave has successfully helped over three million small business owners and freelancers around the world. Throughout the years, Wave has made fruitful acquisitions that have contributed towards the growth of the company and helped them serve even more businesses across 200 countries worldwide. Recently, it was announced that Wave was acquired by H&R Block for $537 million. The acquisition is one of the biggest buyouts in the tech industry within Canada. The acquisition of Wave will mean great expansion for H&R Block and great possibilities and collaboration for both companies. Kirk Simpson hopes that this buyout will give him the opportunity to invest more in tech startups so he can contribute towards their growth and success. An inspiration for many Canadian entrepreneurs, Kirk Simpson has proven that it’s possible to start and grow a company within the "Kirk Simpson hopes country. Canada has what it takes to that this buyout will give him help entrepreneurs scale their business the opportunity to invest to new heights and build big companies more in tech startups so he can contribute towards their that are valued and recognized worldwide. growth and success."
Attention Grabber
With all the noise that the communications and social media world have created around us, the attention span of viewers have become shorter, and with that, promotional content had to become shorter in order for it to stay effective. The trick is in the ability to relay an effectual message in 20 - 30 seconds with little content. 2.
Brand Awareness
Branding goes beyond the recognition of an image or its colours. It’s the projecting of a combination of business elements that stick in to consumer minds; by which they start recognizing the business, or the business product associated with it.. Make sure that the colours picked for the image clearly align with consumer offerings (whether it be in values, products or customer service). 3.
Sending Out A Message
The purpose behind a business message may vary. Whether it be educating, informing, creating awareness or advertising, there has to be a focused and effective message sent out to viewers. It does not have to be lengthy and detailed to be effective. In fact, with the attention span of the internet generation, an engaging short statement is way more effectual than a detailed paragraph. 4.
Call To Action
A feature that will increase the success of a promo video is a call to action request or button triggering the viewer to take action to either buy or learn more, fill out a form or subscribe to a newsletter. That action will also confirm to viewers the business intention for creating the video.
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CLOUD
10
BEST CLOUD SERVICES FOR SMALL BUSINESSES
Technology can be a complicated aspect to understand and create for start-ups and small businesses looking to grow. Although there are many benefits to having an online platform, the limited resources, lack of expertise and time management can represent several challenges for SMEs. There’s also the cost factor that can be an obstacle on its own. IT infrastructure is one of them. Fortunately, there are a vast number of software companies that make it their mission to provide their IT solutions for entrepreneurs. Through resources and programs that have been specifically designed to help SMEs execute daily tasks, these software companies are ensuring to meet all the needs and demands of business owners. 14
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Choosing the right software company for your business can be a challenge on its own, which is why we’ve had our team of experts do some research and narrow down to ten best possible cloudbased IT solutions for SMEs. Each of these companies offers services and programs that meet the needs of entrepreneurs when it comes to managing their day-to-day operations. So, take note as these names will come in handy when it comes to choosing your IT solutions experts.
CLOUD 1.
Shopify E-Commerce
Shopify is the most popular online platform at the moment. They are the number one choice for e-commerce and they have built a strong reputation. With an easy and user friendly, their online platform doesn’t require you to be an IT expert. If you’re still hesitant, you can always try their services for free for a period of 30 days. You can review their free templates and tools to get a better overview for your business and see if Shopify is the right fit for your needs. 2.
Hootsuite
Hootsuite is the perfect online platform for entrepreneurs who are more interested in managing their social campaigns rather than measuring them. Hootsuite provides the opportunity for entrepreneurs to focus on growth by letting them choose to pay only for those feature they need for the business and expand them as their business grows. As a platform that is specifically designed to meet your custom needs, Hootsuite is the most comprehensive platform on the market right now. 3.
6.
When it comes to choosing a software that can meet all your accounting needs, Xero is a strong option to consider. A strong competitor of QuickBooks Online, Xero provides the similar features and is also very popular among entrepreneurs. For entrepreneurs looking to grow their business, Xero offers a wide range of features and automation capabilities. It’s definitely an online platform to consider for all of your accounting needs. 7.
8.
4.
Intuit QuickBooks Online Plus
QuickBooks has created a huge name for itself as being the number one choice for entrepreneurs when it comes to their accounting needs. Specifically designed to help entrepreneurs keep track of their records and manage their accounts and expenses efficiently, QuickBooks is the perfect choice for businesses of any size. Their Intuit QuickBooks Online Plus provides solutions for small businesses and is quite popular due to their versatile set of features. Their built-in UI is affordable and their flexible contract records, transaction forms and report templates ensures to meet the needs of all entrepreneurs. 5.
HubSpot
Easy to use, grows simultaneously with your business, and very affordable, HubSpot is the perfect choice for startups and small businesses. Their e-mail marketing tool is easy to navigate and allows entrepreneurs to create long-lasting engagements with their customers through their automation tool. They also allow businesses to add basic CRM and sales tools to their marketing automation software at no extra fee.
Zoho One
Zoho One provides web office offering which is comparable to G Suite or Office Online. With over 40 different web apps and mobile apps, Zoho One offers a wide-range of services to all entrepreneurs. Their complete CRM, help desk and accounting application meets the needs of entrepreneurs everywhere. Additionally, Zoho One also provides a survey system, conferencing and chat system, e-commerce system and HR management system. Each of its application provides an entirely powered solution. Definitely a strong contender for business owners.
Microsoft Teams
Microsoft Teams offers some of the most competitive aspects in the online platform services. Their organized channel management, ability to video conference and connect employees to Microsoft's entire ecosystem of apps (Excel, PowerPoint, Word, etc.) makes Microsoft Teams one of the best available platforms in the industry. Additionally, they also provide its users new creative ways to connect with colleagues through their in-app meme creation. But to use this feature you have to be an Office 365 Business user to be able to use the platform.
Xero
Zoom
Zoom is an online platform that offers video conferencing and webinar services, comparable to Skype, GoToMeeting and Hangouts. Although the same features provided by Zoom are comparable to other similar providers, Zoom has been known for its easy to use application. The most popular feature that Zoom has to offer are not required to Signup required to sign up are create an account to be able to join meetings. Having the web URL that links directly to the meeting is the only setup that’s required for users. Additionally, Zoom also offers a webinar management system that helps users create virtual and live events. 9.
Cisco WebEx
Cisco WebEx offers basic, free one host plan for up to three people per meeting. Their simplified hassle-free platform allows entrepreneurs to be able to use their web-based conferencing system to test it out and see if it’s for them. Conferencing has never been easier with Cisco WebEX since everything from meeting, collaborating and sharing is in one location. Their Meeting Spaces feature is very popular since it allows the host of the meeting to post an agenda and all other relevant files prior to the meeting. 10.
Salesforce.com Professional Edition
A leader in CRM, Salesforce.com has created a strong reputation for itself through its many features. Giving entrepreneurs a complete overview of their business through reporting and analytics, email marketing and sales forecasts just to name a few, Salesforce.com Professional Edition is the perfect choice for those who want to get a full report of their business.
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INTERVIEW
Image credit: Atlantic chamber of commerce
ADVOCATING BUSINESS DEVELOPMENT IN ATLANTIC CANADA
S H ER I SO M ERV I LL E
Commerce is to support business. And as the business landscape and composition changes, so to does our network. Our Chambers deliver core programs (e.g. advocacy, networking, benefits, and information) and they are continuing to evolve as they develop and offer responsive programs and services to support our Atlantic Canadian entrepreneurs and small businesses. A significant benefit of belonging to a Chamber is their local presence and ability to tailor solutions specifically to meet the needs of entrepreneurs and small business in their community and the region. For example: •
The St. John’s Board of Trade has launched programs like the #InvestStJohns, ConnectorNL (with satellite offices in Gander and Corner Brook), and Climate Smart programs for entrepreneurs and SMEs
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The Eastern PEI Chamber offers a 50 per cent discount to new business start-ups who participate in the Skills PEI program
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The Annapolis Valley Chamber has a Young Business Leaders Committee to actively change the local narrative on opportunities and spark connections between young professionals and entrepreneurs to facilitate growth of small local businesses
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The Greater Charlottetown Chamber operates the PEI Connectors program to serve immigrant entrepreneurs by connecting them to the PEI business community
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In Bathurst, the Chaleur Chamber of Commerce operates a Hive Incubator space to provide connections and free workspace to budding entrepreneurs
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In Fredericton, the chamber supports Start-up Fredericton by coordinating and promoting networking and other initiatives of entrepreneurs and students with aspirations of starting, acquiring and growing a local business
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The Pictou Chamber opened the ChamberHub community workspace for local entrepreneurs and members
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In Truro, the Chamber partnered to create the Truro–Colchester Partnership for Economic Prosperity (TCPEP) which is helping increase business startups, support business growth and innovation, and workforce development, attraction and retention.
CH IEF EX EC U T IVE O F F I C E R ATLAN T IC C HAMB E R O F CO M M E RC E
Sheri Somerville is Chief Executive Officer of Atlantic Chamber of Commerce (ACC), the largest accredited business association in Atlantic Canada representing more than 16,000 businesses through its network of 93 chambers and 25 corporate partners. Sheri is a globally certified communications professional with more than 21-years of multi-sector business experience, and partners with her members to influence an environment in Atlantic Canada where business succeeds. A proud Atlantic Canadian, she is passionate about influencing growth and prosperity for business and people in the region. What are some of the programs the Atlantic Chamber of Commerce offers to SMEs to help them grow? Historically, many people perceived that large companies employing hundreds of people dominated the business landscape in Atlantic Canada. But the reality, and our future promise, depends on entrepreneurs and small business owners who truly are the driving force in the Atlantic economy. Of the 78,000 businesses in Atlantic Canada, nearly 98 per cent are small (with less than 100 employees) and at the same time provide 75 per cent of our region’s employment. The same holds true for the Atlantic Chamber and our network of 93 Chambers where 90 per cent of our growing 16,000+ membership are entrepreneurs and small businesses—a number only expected to increase as new technologies emerge and our ability to access global market opportunities expands. As local community builders the primary goal of Chambers of 16
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Within our network of 93 Chambers, there are as many examples of entrepreneurial and small business support mechanisms as there are Chambers. But what’s unique is our network connectivity is we share ideas and best practices with one another to help everyone evolve and strengthen the entire Atlantic Canada business network. If you want to do business or develop partnerships in Atlantic Canada, simply connect with your local Chamber. They will facilitate connections for you through the Chamber network. It’s the common thread that gives strength to our economic fabric. Chambers are dedicated to supporting business success in their community and Atlantic Canada—it’s the power of our network. What are some of the initiatives that you’re hoping to put in place that can be beneficial to Canadian SMEs? We are very excited to be launching our newest Affinity Program to Chamber members in September that is designed specifically to help entrepreneurs and small businesses in Atlantic Canada succeed. We’ve partnered with Canada’s leading online entrepreneurship training provider, GoForth Institute, led by Dr. Leslie McGeough, to offer their online training to our entire Chamber network of 93 Chambers and we are calling it GoForth with The Chamber. This training will see participating members receive vital business skills education in marketing, finance, accounting, operations, people development, government compliance, growth strategies, funding sources and more. This is very exciting for the Atlantic Chamber and our network because this online training program has delivered real results to its participants with more than 90 per cent of entrepreneurs using this training remaining in business two years later—that’s 20 per cent more than the national average. Watch for our launch of GoForth with The Chamber because this training, along with the many other benefits we offer—like a group health insurance and savings on everyday business needs—delivers significant value for membership to small business owners and their employees. ACC is also working with our national network and local funding agencies to help Atlantic businesses gain access to CyberEssentials by reducing the cost of assessing on-line vulnerabilities and developing protection mechanisms. This program will protect and certify businesses while increasing SMEs attractiveness to new global clients.
The Atlantic Chamber of Commerce recently released a 2018-2020 Strategic Plan. Can you give us more information about how this will help businesses in the Atlantic provinces? The Atlantic Chamber is quite unique in Canada in that we’re the only regional Chamber and represent four provinces. And while each province has some distinct characteristics, as a region we have a common goal of bringing growth and prosperity to the area. We are an organization born of the need to represent and support our Chambers and Boards of Trade and the more than 16,000 businesses and 25 corporate partners within the network. Our concerted, collective efforts centre upon the goal of contributing to the creation of and sustaining a strong, vibrant and growing Atlantic Canada. To this end our strategic plan focuses on the three priorities to ensure continued business support and achievement of our goal. Impactful policy development and advocacy to help create or improve conditions for business success; engaged members and partners to ensure a strong network of support for local businesses in Atlantic Canada; and ensuring a strong, sustainable organization that continues to provide support and influences a positive environment where businesses succeed. From advocacy to events to professional development and beyond, these priorities drive and guide all of our the activities and programming we provide in order to continue to contribute to an improved foundation for business success in Atlantic Canada. For example, in an effort to educate and increase understanding for our members last year we partnered with the Atlantic Provinces Economic Council (APEC) to provide a practical guide to help businesses understand and navigate U.S. trade uncertainty with respect to potential NAFTA scenarios—of great concern to business given our region’s proximity to and greater reliance on trade with U.S. markets and customers. How is the ACC helping startups in the Atlantic provinces? ACC and our members continue to work with Atlantic Governments to identify and address regulatory and trade impediments that limit the growth of new businesses. We
"We are an organization born of the need to represent and support our Chambers and Boards of Trade and the more than 16,000 businesses and 25 corporate partners within the network. Our concerted, collective efforts centre upon the goal of contributing to the creation of and sustaining a strong, vibrant and growing Atlantic Canada."
continue to push for efficient compliance processes and support for easy access to information on government funding and regulatory requirements. A critical piece of our advocacy includes a call for a comprehensive public review of the federal and provincial taxation systems to decrease complexity and increase fairness. If you were to compare the businesses of the Atlantic provinces to the rest of Canada, what would be the differences as far as their business needs are? The needs of businesses in Atlantic Canada are on par with the rest of Canada in terms of the need to increase business investment and support, competitiveness, workforce strategies and regulatory effectiveness—these are common themes nationally. But each year we survey our members to assess their priorities for the region and then develop our policy priorities based on their feedback. What we’re hearing over the last few years is while Atlantic Canada is considered one of the most desirable places to live and economic growth is on a positive trajectory the region continues to lag well below national averages. Our businesses are looking to work with governments to reduce the public debt; to reduce red tape and implement predictable and reliable government services; create positive investment and job creation climate, and to help improve access to workers through immigration and other retention strategies.
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INTERVIEW
Atlantic Canada is somewhat unique in that a market of about two million people is governed by four provincial governments, adding to the regulatory complexity of doing business in our region. We are further challenged by a much higher proportion of our population residing in rural communities, adding to the cost of transporting goods, servicing clients and providing private and public sector services. Because of our highly rural population component and historical development of our natural resources, Atlantic Canada has a proportionately higher percentage of seasonal businesses and employment opportunities in the tourism, fishing, and forestry sectors. This reality creates a challenge for many employers in accessing seasonal workers for low wage and low skilled positions that are critical in the development of these sectors. Given the uniquely high proportion of small business and entrepreneurs driving the Atlantic economy, it is critical we work together to establish conditions that create an optimal playing field for their success— these conditions are set in motion by communities, government, and the Chamber as well. We all have a role to play to ensure growth and prosperity in the region. Do you believe that the businesses in Atlantic provinces contribute greatly to the Canadian economy? Every province, every business and every person have a role to play in sustaining and maintaining the Canadian economy. The four Atlantic provinces accounted for about six per cent (roughly $113.4 billion) of Canada’s gross domestic product (GDP) in 2016. We have several dynamic sectors (tourism, forestry, energy, natural resources) as well as new and developing sectors (bio-technology, cyber security, agri-foods and aquaculture) in the region and we serve as an important gateway to international markets. Atlantic Canadian businesses play a critical role in contributing to success to the country’s socio-economic conditions. Atlantic Canada is: • A primary supplier of seafood products and supplier of over half the global demand and providing export revenues of $2 billion • A national transportation hub with easy air and sea access to global markets, proximity to the US seaboard, and 18
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• •
several of the largest trucking firms in Canada Recognized as a centre of excellence in the development of ocean technology Due to small population and geographic size, the region is an excellent policy pilot location where new programs can be tested, as for example, the Atlantic Immigration Pilot Program.
What would you say are some of the challenges that the businesses in the Atlantic provinces face and how is the ACC helping them? Two of the biggest challenges facing business in Atlantic Canada center around certainty and talent acquisition and retention. An essential component of running any business is the ability to predict costs and timelines with some degree of certainty. Any sudden change or spike can be extremely detrimental to a business sustainability. Of course, businesses recognize that governments must provide regulations, but finding the balance that cultivates an attractive investment environment is critical in Atlantic Canada. The other primary challenge right now is attracting and retaining new people and talent to the region. It’s hard to understand why Atlantic businesses can’t fill job vacancies when our region has some of the highest unemployment rates in Canada, but the reality is we need skills that are not always available in our existing workforce and improved housing and transportation in our rural communities. ACC is front and center advocating for the reduction of red tape and improving the predictability and efficacy of government services for business. We maintain close relationships with our elected officials and provincial governments so that we liaise with them on key issues affecting business. ACC and its member Chambers also participate in working groups and often issue statements, letters and positions on any number of red tape issues. Key to this is capitalizing on the insight provided by our four Provincial Advisory Committee’s (PACs)—comprised of Chamber staff and business members from across each province—who keep abreast of current issues and changes in their Province. ACC is also working close with governments and post-secondary institutions to help
attract and retain talent and improve immigration rates through schools and by promoting the Atlantic Immigration Pilot (AIP) to employers. Most recently, we partnered in an experiential learning pilot with the Government of New Brunswick, the NB Business Council and Mt. Alison University that helped students connect with businesses in the region. We have continued our involvement through to the new FutureReady NB program that is now in place. Similarly, ACC engaged with the community colleges in the region to provide insight surrounding the recruitment and retention of international students within the college system. Of course, there are many programs and activities that exist throughout Atlantic Canada to address these key challenges, as they say ‘many hands make light work’, and our team at ACC welcomes any opportunity to be collaborate, provide insight, or to facilitate connections where they’re needed. What is the best resource that ACC provides to SMEs to help them grow their business? Quite simply, the Chambers and Boards of Trade themselves. When I was in university doing my business degree, the Chamber was the automatic ‘go to’ place for information or connections when it came to business. So of course, I was member of many Chambers throughout my corporate life and as an entrepreneur. But the Internet changed that and provided new access at people’s fingertips. For some, the Chamber has become less of a primary resource in the face of instantaneous availability of business information. But many chambers are adapting their communications strategies to become more accessible and relevant to today’s connected population. When I first took the helm at ACC a few years ago, I was surprised that many of the young people or young professionals I spoke with had either never heard of a Chamber, or if they did, didn’t know what one does (I suspect they Googled it after speaking with me though). But despite how we connect electronically today, business by and large succeeds through relationships. Building those requires face-to-face connections to build trust and become known to people is just one of the Chamber’s strengths.
The Chamber is a very relevant and vital resource—whether it's for students looking for their first job, entrepreneurs or SMEs seeking to expand their client base or network of peers, large companies building their reputation within a local community, or for newcomers trying to do all of the above—simply because of the depth and breadth of programs and services we offer. The beauty of a Chamber is that it is driven by its people in the local community and therefore, the unique needs of their businesses play a large role in determining what the Chamber offers. But the Chamber can also draw upon resources and expertise of the larger network provincially and nationally where needed. The large percentage of Chamber members in Atlantic Canada are small businesses who offer a variety of products and services. The Chambers typically offer support in the form of advocacy, networking, information and savings, but they will add programs and services in response to the specific needs of their members and community. I highly recommend connecting with your local Chamber to see all that it has to offer. What advice can you give to Atlantic SMEs to help them succeed? You know there are probably a number of perspectives on this, but based on my own experience in the private sector, as an entrepreneur and now with the Chamber network, I would say don’t wait until its too late or be afraid to ask for help. No matter how capable we are or how many years of experience we have going into it, its tough to do it alone. Being able to recognize that ‘you don’t know what you don’t know’ is a strength not a weakness. And that’s the wonderful thing about Atlantic Canada and the Chamber network, the tremendous community of support and advice that is available—all you have to do is reach out, connect, and ask. Chances are somebody knows someone who can help you or has been where you are before. Of course, this is my shameless plug, but reach out to us or your local Chamber team. Whether you’re just getting started and need a network of likeminded entrepreneurs; or trying to scale up and access new clients or other small business owners who’ve been where you’re at; or even looking to transition
a business because you may retire, your Chamber team can help. While small individually, the collective impact of our small businesses is essential to our prosperity. Our aging, slow growth population presents additional challenges when compared to central and western Canada, but Chambers of Commerce (and governments) are vitally interested in assisting startups and scaleup companies achieve success. Resources and supports exist, so entrepreneurs should connect with government to ensure they maximize the funding and skills development programs that are available. The creation of the Business Navigator Service in Nova Scotia is an excellent example of government recognizing the need for and devoting resources to facilitate new business creation. You only have to #maketheconnection. What would you say are the three success factors that all SMEs should have to grow their business successfully? A strong network, proven sales and the ability to adapt when things change. Building a network of likeminded entrepreneurs and small business peers, mentors and coaches can give you the sounding board you need as you get started or when you are scaling up. Many will tell you that as your network grows so do your resources, so it’s critical to build a strong network. If you don’t have one, reach out to your local Chamber for help with making new connections. Sales are critical and they really are the validation that’s necessary to prove your product or service and to provide the revenue to keep you going and growing. A chamber can help connect with customers as you build your network and can be another key tool in your lead generation toolbox. Adaptability continues to be a key quality among successful entrepreneurs and small business owners. Markets change and do so rapidly. It’s important to understand your market, be aware of any changes and be ready to act, because those who are open to and ready to pivot tend to remain competitive and relevant.
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MARKETING
Canada's Top Marketers
C
anadian marketers play a huge role on the success of the business industry. Through their unique and creative marketing campaigns, they are shaping Canada’s businesses. On top of providing marketing strategies each more innovative than the previous, they are also working under the law of the Canadian Anti-Spam Legislation, also known as the CASL. This law prevents marketers from contacting recipients who have not authorized e-mail marketing. Although this can represent a challenge for several startups and small businesses, Canadian marketers have been able to work around these laws to promote businesses and awareness messages.
Finding original and imaginative ways to create marketing campaigns is what makes Canadian marketers stand out from the rest. They have made it their mission to create a strong connection with consumers and deliver through their marketing strategy strong awareness messages. Our team of experts at CanadianSME have done extensive research to provide a list of the top 25 Canadian marketers that we strongly believe are revolutionizing and shaping Canada’s marketing industry. Each of these marketers use the latest marketing trends and provide inventive marketing ways to communicate with the country’s consumers. Be sure to follow their journey as they build a stronger and more diverse Canada, one marketing campaign at a time.
Catherine Roche
Diana Luu
Head, Marketing and Strategy, BMO Financial Group
Head of Marketing Solutions Canada & Business Services North America at LinkedIn
@catherinemroche
@luudiana
Brenda Woods
Elizabeth Prowse
Head of Marketing at Visa Canada
Head of SMB - PayPal Canada
@BrendaWoods9
Tim Bishop, CM
Fab Dolan
Vice President, Marketing & Experience at Canadian Marketing Association
Head Of Marketing, Google Canada
@timdbishop
@FabDolan
Gene Fong
Michelle Slater
Head Of Marketing - Audi Canada
Head of Business Marketing at Twitter @MichelleSlater
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MARKETING
Neil Shankman
Katia Houbiguian
Fatima Israel
Chief Marketing Officer BDO Canada LLP National
CMO Microsoft Canada
Director - Marketing, TELUS Health
Anita Booth
Tammy Sadinsky
Jane Wasylnchuk
Head Of Marketing at Cannabis Compliance Inc.
Vice President Marketing at Walmart Canada
Integrated Marketing Planning Manager, TD Bank
Samantha O'Neill
Claire McIntyre
Ariane SauvĂŠ
Chief Marketing Officer - Sun Life Canada
Head of Brand, Marketing and Communications at Oxford Properties Group
Director, Brand & Corporate Marketing at Canada Post
Heather Haslam
Kobi Gulersen
Neal Cranna
Vice President Marketing at ADP
Vice President of B2B, Partner & Product Marketing at Mastercard Canada
Senior Technology Marketing LeaderSage Canada
@KatiaHoubiguian
@anita_cci
CPA (CA) MBA
@SamMOneill
@HLHaslam
@kobigulersen
@NealCranna CANADIANSME MAGAZINE I AUGUST 2019 I
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INSPIRATION
MEET NANCY WILSON: CHIEF EXECUTIVE OFFICER, FOUNDER OF CANADIAN WOMEN'S CHAMBER OF COMMERCE
Nancy Wilson is the Founder and CEO of the Canadian Women’s Chamber of Commerce (CanWCC), which launched in January 2018. CanWCC is a national, not-for-profit organization that advocates for the economic priorities of women-owned businesses. It is the first (and only) Chamber of Commerce in Canada that represents the unique and diverse voices of women-identified entrepreneurs and business owners. For more information and to become a member, visit https://canwcc.ca. Image credit: Canadian Women's Chamber of Commerce
What inspired you to launch the Canadian Women’s Chamber of Commerce (CanWCC)? Prior to launching the Canadian Women’s Chamber of Commerce, I was running my own business (an accounting firm) and experienced first-hand many of the challenges faced by women business owners. I was also working primarily with women clients who would describe similar stories of obstacles and difficulties in starting and growing their businesses. I was tired of reading advice about workarounds and how to change my behaviour in order to succeed. I was also frustrated and often disappointed with what I encountered in the fragmented and crowded marketplace of support services geared to women entrepreneurs. I realized that significant systemic change was required. When I learned that Canada did not have a Women’s Chamber of Commerce, I decided to act immediately. Can you tell us what you are hoping to accomplish through the CanWCC? What is your main goal? The main goal of CanWCC is to communicate the needs of women-identified business owners and entrepreneurs to those in a position to create and change policy and, in doing so, affect significant, substantive, and positive change. Research studies and exploratory task forces are useful but, ultimately, CanWCC’s members are the experts on what women entrepreneurs need to build and grow their businesses. Policy makers need to take their cues from women entrepreneurs directly and take action accordingly. How would you say your past experience has prepared you for your current role? I spent over a decade in the corporate world before starting my own company so I’ve had the experience of being a woman in business and a business owner. I understand what challenges 22
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women might face when they start a business. I am also a Chartered Professional Accountant (CPA) so I have a solid business education and background. Finally, I have always been a feminist and a strong supporter of equal rights. All of these experiences and attributes combined prepared me for my current role as Founder & CEO of the Canadian Women’s Chamber of Commerce. The Canadian Women’s Chamber of Commerce is the first ever Chamber of Commerce in Canada that represents the needs of women entrepreneurs. Why do you believe that there was never one put in place until now? I was really surprised to find out that Canada didn’t have a Women’s Chamber of Commerce. In Canada, there are many excellent womens organizations that work very hard to provide services to women, including business owners, and to advocate for our rights. A Chamber of Commerce is an institution that may be viewed by some as part of a traditional system that is outdated and due for change. I understand that point of view; however, I also recognize that various institutions are imbued with power and legitimacy, by virtue of their history, and because of this Chambers of Commerce have unparalleled access to policy makers. I want to leverage that power for the benefit of women-identified business owners and entrepreneurs. What would you say is the biggest benefit that the CanWCC provides to women business owners? In a word, the unique benefit that the Canadian Women’s Chamber of Commerce provides its members with is access. CanWCC differs from other organizations in that it can provide access to policy makers and the ability to effectively communicate members’ needs. However, changing policy is a long-term priority and our members want something that will help
them start, build, and grow strong, sustainable businesses today, tomorrow, and next week. To that end, CanWCC offers its members a different kind of access: access to programs and services through our partner network, access to a community of like-minded peers, and access to a national business network that puts their needs first. In your expert opinion, what is the biggest challenge that women entrepreneurs face and how can the CanWCC help them overcome these challenges? Access to capital is the biggest challenge that women-identified entrepreneurs, face. To address this challenge, CanWCC made Access to Capital one of of the top priorities in its Advocacy Agenda (released in January 2019), and continues to work with our members and a larger financial and investment community to explore solutions. We will be releasing our 2019 Election platform in the coming weeks. It will include specific policy recommendations related to access to capital. What has been the biggest accomplishment of CanWCC since it first launched over a year ago? Earlier this year, CanWCC received a 4-year grant from the Department of Women and Gender Equality (formerly Status of Women Canada) to build organizational capacity and expand nationally. Receiving this grant will allow the organization to build its resources, ensure longterm sustainability, and serve a national membership. It is an exciting time for the organization right now. The business industry has been seeing a significant increase in female entrepreneurs in recent years. How would you say the role of women business owners has evolved in the last 20 years? Not enough! Canada’s movement towards gender equality in many spheres is unacceptably slow.
For example, research on SME financing from the early 2000s report that majority womenowned businesses were less likely to be approved for a loan and, if they were approved, received less money (on average) than their male counterparts. Similar research from 2011, shows the same pattern, with majority of women-owned businesses receiving approximately 82 per cent of the amount of financing requested versus 95 per cent for male-owned businesses. By 2017, the ratio of authorized to requested debt financing had narrowed but the amount received by majority male-owned firms totaled $40.8 million versus $3.2 million received by majority women-owned businesses. Let’s face it, our views and acceptance of marijuana have changed more dramatically in the last twenty years than the level of gender bias in the business arena. CanWCC intends to change that. What does the future of CanWCC look like? Where do you see it going 10 years from now? I am very optimistic about the future of CanWCC. There is a lot of interest in women entrepreneurs right now and we intend to capitalize on that to affect real change. A decade from now, I see CanWCC as a national thought leader on SME policy. We will have a strong, engaged membership across Canada. Our advocacy efforts will be paying off and we will see some positive changes taking place. On a final note, what made you decide to take this career path?
Get an instant repair service 15% discount on all repairs.
I wanted to do something that I was passionate about and would challenge me every day.
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EXCLUSIVE INTERVIEW
P AY P A L CANADA FINDS THE PERFECT BALANCE FOR SME CUSTOMERS
Paul Parisi
President, PayPal Canada
Paul is a results-oriented Canadian leader with a strong track record of more than 20 years in the payments industry. He is focused on driving the next phase of growth for the company and its 7.1 million active customers in Canada. Paul plays a pivotal role in identifying strategic partnerships and bringing payment innovations to the Canadian market. He leads his team to help more than 250,000 Canadian small businesses and large retailers grow their sales locally and internationally. An engaging speaker with a passion for innovation, entrepreneurship and leadership, Paul brings a unique perspective on how financial services companies can collaborate to make money more accessible to people and businesses.
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Prior to PayPal, Paul was vice president and general manager of global commercial payments at American Express Canada. During his tenure at American Express, he developed and drove business strategy for corporate payments and small business services and held several key leadership positions across sales, account management, e-procurement and travel. A global sales leader, Paul has lived and worked in Canada, the U.S. and the U.K. Paul has a bachelor’s degree from the University of Guelph.
Image credit: PayPal Canada
EXCLUSIVE INTERVIEW
As President of PayPal Canada, can you tell us how PayPal Canada is helping small business owners grow? We constantly look for opportunities that will help our small businesses achieve their goals. Most recently, we announced our partnership with Visa and the ability for our small businesses to get their money out of their account as quickly as they like. What can you tell us about the products and services that PayPal Canada offers to SME owners? Easy access to all things that keep a business running are important to us right now. Helping our small businesses get their packages to their customers in the most efficient, low-cost way is definitely something we recently announced in the last little while. Return shipping on us, so allowing customers who buy using a PayPal button to return their item up to 12 times a year to a maximum of $30 per time, at no cost to our small businesses are just a couple of the amazing things we have done that have really gone over in a big way. How important do you believe innovation is when it comes to implementing new products that can benefit the small business industry? I think getting the basics in the core right for people is the most important piece. Innovation is always going to be important. Creating new and interesting opportunities for small businesses is always something were on constant look out for, but we never want to forego the basic, core ease of our customers in lieu of doing something that is trendy or cool. What are some of the strategies you use to help small business owners increase their sales and revenue? Certainly, making it easier for customers to buy on their site is the number one way. The introduction of One Touch, which allows a consumer to instantaneously buy without having any friction in the payment process, is the number one way that increases the revenue of our customer base. Recently, PayPal and Visa have joined forces to help increase the small business industry and help them gain access to more funds. What can you tell us about this strategic partnership and how do you believe this will benefit SME owners?
I think it’s important that our small businesses are be able to manage their money how they want and not be [hindered] by any financial institutions of any sort. Getting their money into their bank account as fast as they possibly can was one of the things we searched out for and found a partner to be able to do that with. We made it really easy for our small businesses to sell with creating revenue, we’re allowing them to ship faster to their customer base, we’re allowing customers to return if necessary at no cost to the retailer and now they have the balance of money. In many cases they keep it in the ecosystem, to sort of use it as they normally would, but other small merchants want to be able to take their money out quickly and buy more inventory or use it however they want. The partnership with Visa allows that to happen. You can now instantly take out your money, with some banks with a wait time of 30 minutes at most, at a very small cost. Recent studies have proven that 85 per cent of small business owners find it critical to have access to real-time payments and would be willing to switch to a merchant who can provide this service. In your opinion, why do you believe it’s important for SME owners to have access to real-time payments? How can it impact the success of their business? A recent study has shown there is a high percentage, about 70 per cent, of small businesses have not been able to pay one of their monthly bills. Small businesses do not have this constant dream of revenue. It’s really high in some periods of the year, it’s really high in some periods of the month and it’s down at other periods, and so, allowing them to take their money out if they want to and do it in real time allows them to smooth out some of the costs associated with their business. In particular, we want to make sure they don’t incur any penalties, or help them get their money faster so that, at a minimum, they can pay their utility bill or whatever costs are associated to running a small business. What do you believe is the number one challenge that SME owners face when it comes to their payment solutions and how can PayPal Canada help them overcome these challenges?
website with the least amount of complexity or concerns, maybe the payment option they are choosing is the wrong one or there might be risks associated with it. Our strength in the market is we are known for trust and security. If someone clicks on that PayPal button, they know they can trust it, they know there is security in the exchange and that it can now happen extremely quickly. On a final note, you have over 20 years of experience in the payments industry. How have you seen it evolve throughout the years? The move to commerce has been eye-opening. The traditional forms of payment on brick and motor [businesses] we’re known and wellestablished and easy for people to understand what their options were and easy for retailers to understand what their options were. If someone was coming into their store to buy something, you knew easily how you going to accept their money and how they wanted to pay. Online is a whole new world. How people want to pay, how fast they want to pay, what they consider to be secure and not secure, what their concerns are, if there is a little bit of movement or friction on the page, the speed with which consumers can pay and the speed with which small businesses can get the money after the exchange are all in this evolution of everything happening faster, more effectively and at a lower cost. It’s opened up the ability for so many people who would never sort of think about having a prick and motor store, but they had a great idea or product or solution that they wanted to get out to the market. They can do it now after hours or during traditional working hours, they can open up a business at very low cost and the payment side of that is particularly easy. It’s up to people like us and others in the payment space to help remove some of the complexities and concerns with how someone goes through that whole process. Final thoughts? We continue at PayPal to look at any area that is causing concern or any opportunity for our small businesses to manage their business better. Every time we find one of these spots, we work diligently to remove the barriers that small businesses have to make it faster, easier and more secure to operate.
A consumer has gone through the trouble of finding what they want on the website that they wanted and went through that whole process, they don’t want the final step to be difficult. They want it to be easy. Keeping a person on that
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BUSINESS TALK
BUSINESS TALK WITH BRIAN WEINER VICE PRESIDENT AND HEAD OF PRODUCT FOR VISA CANADA
As VP and Head of Product for Visa Canada, can you tell us about how you’re planning to implement products and resources that can benefit Canadian small business owners? Small businesses are the backbone of Canada’s economy – they not only bring jobs and innovation to local communities, but also contribute to annual spend. In our digital economy, where consumers are accustomed to on-demand services and experiences, Canadians are unsurprisingly motivated to buy from businesses that offer convenient, easy and increasingly digital shopping experiences. A competitive payment experience is no longer a “nice-to-have" for businesses, but rather a necessity. Visa is committed to delivering services, products and programs to help small businesses grow. Whether it is Visa’s core credit card products, or products like Visa Business Reporting, which allow small businesses access to valuable insights into their spending behavior and tracks expenses on the go, the future of Visa small business products will be increasingly digital, mobile and flexible. The recent announcement between Visa and PayPal illustrates this focus on creating a seamless digital experience. Starting a small business has its number of challenges. What do you believe is the most challenging part of being an SME owner and how can Visa Canada help? For small businesses, the ability to manage cash flow is critical to their growth and success. Recent research conducted by Intuit QuickBooks found that nearly 2 in 3 (64%) Canadian small businesses have had cash flow issues. The negative impact that cash flow can have on small businesses is profound. On average, small business owners in Canada are losing $28,885 by foregoing a project or sales specifically due to issues created by insufficient cash flow.
Image credit: Visa
Brian Weiner is the Vice President and Head of Product for Visa Canada. His organization is responsible for the development and rollout of Visa’s full Canadian product suite, including its traditional credit, debit, and prepaid products, as well as its expanding array of digital products and capabilities. Since 2006, Brian has been an active member of Visa’s leadership team, responsible for shaping the organization’s strategy through one of the most dynamic periods in the history of the payments business in Canada. Looking ahead, Brian and his team are focused on re-imagining the future of payments in collaboration with many partners across the payments ecosystem in Canada and around the world. Brian has won multiple awards for his work in evolving electronic payments in Canada, and he was recognized as a global winner of Visa’s Go Beyond program. Brian has been in the Canadian financial services industry since 1997. He holds an MBA from the Schulich School of Business and a Bachelor of Commerce from Carleton University. Brian lives in Toronto with his wife Shelley and their two daughters. 26
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Our partnership with PayPal is one great example of how we are enabling small businesses in Canada to instantly access funds. PayPal's new Instant Transfer, powered by Visa Direct, Visa's real-time push payments platform, gives small businesses more immediate access to their money – providing an experience that offers speed, security and convenience, 24/7/365. In your expert opinion, what would you say is the most popular product that Visa Canada offers to entrepreneurs? When Visa Canada implemented contactless payments in Canada, it changed the payments landscape forever. Not only did consumers have a secure, convenient, and fast way to pay, but businesses could reduce waiting times and streamline operations. What began in 2010 has evolved into mobile payments and much more. More and more entrepreneurs are putting in place measurements to avoid long-term debt to be on the path to financial freedom. How is Visa Canada helping entrepreneurs when it comes to avoiding debt? For small businesses, the ability to manage cash flow is critical to their success – small business owners are losing money due to cash flow issues [as stated above]. CANADIANSME MAGAZINE I AUGUST 2019 I
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BUSINESS TALK
Visa is committed to delivering services, products and programs to help small businesses grow, and manage their cash flow. Products like Visa Business Reporting allow small businesses access to valuable insights into their spending behavior and tracks expenses on the go. Our partnership with PayPal is one great example of how we are enabling small businesses in Canada to instantly access funds, and therefore better manage cash flow. PayPal's new Instant Transfer, powered by Visa Direct, Visa's real-time push payments platform, gives small businesses more immediate access to their money – providing an experience that offers speed, security and convenience, 24/7/365. Electronic payments have significantly improved in recent years. What can you tell us about how electronic payments can benefit small business owners? Digital transformation is happening now, and it's happening fast. Consumers are motivated to buy from businesses that offer convenient, quick and easy shopping experiences, like the ability to shop both in-store and online, use digital payments, and keep up with current payment trends. As commerce is going through a transformation, businesses are looking at digital solutions to help improve sales, obtain new customers, and reduce costs. As Head of Product for Visa Canada, you’re responsible for the development and expansion of digital products. Can you tell us how digitization has impacted Visa Canada? Customers have more ways than ever to connect with their favorite businesses – online or in-person, via e-commerce and through social media and messaging. Digital experiences are great enablers of growth, and Visa is there to help. Digital is at the heart of all our products and solutions and, quite literally, opening a new world for small businesses. What would you say is the biggest benefit that digital products have on Canadian SMEs? The digital opportunity is huge for small business - digital payments are driving the future of commerce.
Today’s consumer has come to expect an on-demand shopping experience that is quick, convenient and secure. Whether browsing instore or online, customers are using digital technologies to get what they want—and they are often swiping, dipping, or tapping to pay. Accepting digital payments doesn’t just help merchants deliver what their customers expect, it benefits them in many ways the customer never sees. Put simply, in addition to providing access to cardholders and new technologies, digital payments help merchants – big and small – protect and grow their businesses. Some benefits of increasing the use of digital payments include: i. Bigger basket size: A 2018 ValuePenguin study found that people are willing to spend more—as much as 83 percent in some cases—when paying with a credit card instead of cash. ii. Faster checkout and increased efficiency: Small businesses can perform up to 15 percent more transactions every hour through the use of digital payments . iii. Added security: Counterfeit fraud experienced by merchants decreases by 74% with EMV® chip cards . iv. Quicker payouts: PayPal’s new Instant Transfer, powered by Visa Direct, Visa's real-time push payments platform, gives small businesses more immediate access to their money – providing an experience that offers speed, security and convenience, 24/7/365 . Visa reaches customers everywhere, and we can help small businesses meet evolving consumer needs through the implementation of innovative payment experiences. On a personal note, can you tell us about what was the deciding factor that made you join the Visa family? Visa is the world leader in electronic payments, which is one of the most dynamic industries in the world today, and Canada is one of the industry’s most sophisticated markets. Being able to be at the forefront of payments innovation is fun, exciting, and intellectually stimulating. I couldn’t imagine a better place to be.
[1] IHL Group Study, January 2018 [2] Canadian Bankers Association (2009). Payment Card Partners Working Group (VISA
Canada;
MasterCard
Canada;
American Express Canada). Data for the period ending December 2018.
"Digital transformation is happening now, and it's happening fast. Consumers are motivated to buy from businesses that offer convenient, quick and easy shopping experiences, like the ability to shop both in-store and online, use digital payments, and keep up with current payment trends. As commerce is going through a transformation, businesses are looking at digital solutions to help improve sales, obtain new customers, and reduce costs."
[3] Actual fund availability depends on receiving financial institution and region. Visa requires fast-funds enabled issuers to make funds available to their recipient cardholders within a maximum of 30 minutes of approving the transaction. Please refer to your Visa representative and
the
Visa
Direct
Original
Credit
Transaction Global Implementation Guide for more information
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INNOVATION
Jim Harris is one of North America’s foremost management consultants, public speakers, authors and thinkers on change and leadership. He has 20 years experience as a professional speaker and consultant, and speaks internationally at more than 40 conferences a year on topics including innovation and creativity, customer relationship management (CRM), eLearning, creating learning organizations, environmental leadership, energy efficiency, strategic planning, and creating common organizational mission and vision. He was one of the first seven Canadians personally trained by Al Gore to present the slide show for An Inconvenient Truth. He was also one of just 12 Canadians who were licensed to publicly teach Dr. Stephen Covey’s work, The Seven Habits of Highly Effective People. Jim Harris works with leading businesses and Fortune 500 companies. He recently finished a global consulting contract with IBM and a related white paper on how low carbon leadership drives profitability.
JIM HARRIS ON BEING AN
INNOVATIVE LEADER Disruptive Innovation Thought Leader & Keynote Speaker Image credit: Jim Harris
How would you say innovation can help small business owners grow their business successfully? If you look at all the rapid growth companies in the world, they’re the ones that average consumers would describe as innovative. There is a very strong relationship to innovation [with] growing the top line and profitability. What do you believe is the most challenging part of being an innovative entrepreneur? Everyone talks about wanting to innovate and change, but as adults we like doing what we have always done. We feel uncomfortable, awkward, like a child again, doing things we’ve never done. But, we talk a good game. ‘Hey, we want to be innovative.’ It is in part, our personal reaction to change, that keeps us doing things in the way we’ve always done them. When we were small children, you and I received a vaccination. We were given a very mild form of disease that allowed our body to build an immunity to it, so that when we encountered that actual disease later in life, we were able to resist 28
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His most recent book, Blindsided! is a #1 international bestseller, having hit the top spot on the Financial Times of London’s European Edition of Best Business Books. He is also the author of The Learning Paradox, which appeared on numerous bestseller lists, and co-author of national bestseller The 100 Best Companies to Work for in Canada. He is also principal at Strategic Advantage. He previously held positions as partner at Cleantech Group and affiliate at Covey Leadership Centre. In addition to his speaking and consulting engagements and books, Jim Harris writes for a number of publications, including the Globe and Mail, Profit magazine and Backbone magazine.
it because we built an immunity. The good news about change is exactly that. If we embark on a program of innovation and change, the more we change, the more innovative we are. As a company or as a person, when you begin to engage in small change, you [say], ‘Wow. That wasn’t so bad. And boom, I’m doing it.’ For instance, I use the computer a lot, I am an author and journalist. I type a lot and I use the moose a lot. My right hand was beginning to get sore and I was beginning to worry about getting carpal tunnel syndrome. I switched the moose to my left hand. For the first day, it wasn’t very good, I wasn’t very coordinated. But, now I actually prefer my left hand. The point is we often will not change unless we are forced to change. And two, to change is often not as bad as we think. But [for some reason], we won’t actually go through it until we’re actually forced to, whether it’s market share, loss or whatever. When I am working with my clients, I try and help them get to that point before their losing market share and revenue. One CEO said to me, ‘Jim, what you’re really saying is if we were our own competitors and knowing our internal weaknesses, how we slaughter ourselves? ‘. In other words, how do we create a sense of urgency to innovate and change within an organization.
INNOVATION
DO YOU READ? EVERY YEAR, BILL GATES HAS A READING VACATION WHERE HE TAKES 20 BOOKS AND GOES AWAY. ALL HE DOES IS READ AND THINK. WHAT PERCENTAGE OF YOUR TIME IS SPENT ON THINGS THAT ADD VALUE WHICH YOU SHOULD EITHER ELIMINATE, DELEGATE OR AUTOMATE OUT OF YOUR PROCESSES AS AN ENTREPRENEUR? What role do you believe innovation plays when it comes to the success of a business? It plays a critical role and there’s innovation in many different ways. If you stop people in the street and ask what’s innovative, 75 per cent of people will answer with a product, let’s take for instance the IPhone because it’s in the top ten answers. The IPhone isn’t actually innovative, it’s laggard in the market. There are other companies that are far more advanced, such as Huawei. People perceive Apple as being innovative, but the real point of this is [three quarters] of the answers will be about a product that represents innovation. Similarly, if you go inside an organization, 75 per cent of the innovation effort will be around product. But, product is one part of an ecosystem of what drives real value in terms of innovation. There are four other area that I talk about. One is business model innovation, one is process innovation, one is service or user experience (UX) or customer experience (CX), and policy. Let’s just touch on a couple of these briefly. Business model innovation. Uber? If we have perfected delivering people from point A to point B with an app, do you think we could deliver burgers? They call it UberEats and it’s a $6 million business last year. If we can deliver people and burgers, do you think – or is it too big of a stretch –we could deliver liquor? Could we deliver marijuana? If I am working at the business model innovation as opposed to the product level, I can generate billions of dollars of new business and enter new markets. It’s not about the product, the product is a car and a driver that takes me to A and B. Process Innovation. There is an insurance company in New York City called Lemonade that has the faster claim settlement in the world’s history at 3 seconds. You can only apply for this insurance from your smart phone. A kid had his parka stolen from a restaurant, he answers all the questions on his smartphone through the claims spot. He takes a picture of the police report, he hits the button to submit, it goes up into the cloud and it runs against 18 fraud algorithms. It comes back down 3 seconds later and says his claim is approved. Compare that to 1990, it took 8 weeks on average for an insurance company to settle your car accident claim and for you to get your cheque in the mail. So, from 8 weeks to 3 seconds, do you think that is innovative? Do you think that has driven out costs? Overhead? Paper pushing activity? Do you think that increases customer satisfaction? Do you think that means it will grow? Do think that’s what’s responsible in part for having same coverage 65 per cent lower premium than tradition insurance companies? Do you think that will disrupt the insurance industry? Boom. So that’s the process piece. There’s just a couple of different areas of innovation other than product that can fundamentally change a market. In your opinion, what are some of the strategies that small business owners can use to increase innovative ideas and projects into their business? If we want to be innovative, we have to be continually learning on a personal level. I’ve been to TED, it’s now out in Vancouver, it’s $10,000 US, $13,000 CAN. Can’t just go, you have to write an essay as to why you deserve to go and if they deem you worthy, then they’ll let you pay them $13,000. We have a similar conference in Toronto called Idea City, that’s just had its 20th anniversary. It began as a joint venture with TED 21 years ago. So, every year I go to it. 50 speakers, 17 minutes each, over 3 days. So, are you a continuous learner? Are you always scouting the market and trends? Do you read? Every year, Bill Gates has a reading vacation where he takes 20 books and goes away. All he does is read and think. What percentage of your time is spent on things that add value which you should either eliminate, delegate or automate out of your processes as an entrepreneur?
I could go down to the post office and get 5 per cent off if I get $200 worth of stamps. That’s $10. That’s great, but I took a half hour to do it. When I give a keynote talk their $12,500 in Canada and it’s $25,000 US when it’s in Europe. That half hour [spent getting stamps], could I’ve sold a speaking engagement? Yes, I can save $10 on stamps better than anyone else in my company. But, is that the best use of my time? Do I have to let go of that, delegate to someone else who is new at negotiation, who isn’t going to save the $10. But, what do I as an entrepreneur have to let go of so I can focus on higher value [activities]? Someone else won’t do it as well as I do it, initially, but I have to have the patience and the fortitude to let them go through that learning curve, just like I did. Maybe in the end, they’ll end up doing it better because they have more time than I do. Maybe they’ll get 7.5 per cent off the stamps and outperform what I can do. But, I have to allow them to have the developmental time and have the patience not to have them do it perfectly to begin with. These are internal resistors I have within me. As an entrepreneur, I believe I have to let go of 25 per cent of what I am doing this year. By letting go, it doesn’t mean that we don’t do it, but I have to delegate, automate it or think of a different way of doing it without spending my time. That in turn gives me the time to do higher value added [activities]. That discipline needs to cascade through an organization, not just me, but everyone in the company. We have to have an environment that is supportive of everyone evolving. Do you believe that leadership and innovation go hand in hand together? Why? Yes and no. If you leave innovation just to people who are focused on innovation, you’ll get the following thing. They’ve created a whim they called the fishcam. They’ll pointed some cameras to a goldfish tank and you could login to the web any time to look at where the goldfish were swimming. The technologists thought this was great. If we leave the innovation to just the technologists, that’s what we’re going to get. I’m not saying all loved the fishcam, but this was one of the early applications. Once I’ve seen the fish once or twice, that’s the most I would want to visit that site. We can’t leave all the innovation to technologists. We need them, but we need to apply business models to them. How am I going to monetize this? It’s great you think this is fun and cool. But, here’s an application. What about remote training so that if our company is spread around the globe, we can develop training modules for people to see [each other] remotely. What about remote medicine? Where we can have robotics in the far north of Canada, where you can’t have specialists and someone needs their pancreas taken out. A doctor using high speed internet from Toronto can operate on someone in Nunavut who is under anaesthetic, using a robotic arm that can cut the patient open, take this out, cauterize the bleeding with a local nurse. All those things stem out of the fish tank [idea], but we have to apply business models to it for practical, end use value. We can’t innovate just for the sake of innovation. We can, but it’s not going to help our companies grow and add more value. We do need some fun kind of stuff because it leads to the other stuff, but if we entirely abdicate responsibility of innovation to technologists, we’re not going to get stuff that helps our company grow, adds more value for customers. If you could give the top three benefits of being an innovative leader to an entrepreneur, what would they be? Higher revenue, higher profitability and greater employee engagement and satisfaction.
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PHILANTHROPY
Why taking an organized approach to philanthropy makes sense for entrepreneurs
J. DENISE CASTONGUAY Founder, CEO of Canada Gives J. Denise Castonguay is the founder and CEO of Canada Gives, a Torontobased organization committed to helping philanthropists build and grow high-impact foundations. For more information, visit www.canadagives.ca
If you’re like many successful entrepreneurs, you’ve worked endless hours to grow your company, built a bit (maybe a lot) of capital, and now have the opportunity to enjoy the fruits of your labour. That could mean relaxing lakeside at your cottage this summer, or maybe touring your favourite overseas destination. Or perhaps you’re looking to make a difference and “give back” with that hard-earned income. In many cases, successful entrepreneurs will look to support one or more of their preferred causes, either personally, through their business, or both. Now, cutting a cheque and making a one-time donation is always appreciated, but many find it is more appealing to make a longer-term impact with those funds. That’s why business owners will serve on boards of charities or will seek to steer their donation in a certain direction—to fund the purchase of specific equipment for their local hospital or to support a program delivered by a local charity in their community. Most entrepreneurs lack the time to serve on multiple boards and donating to various charities can be a tax headache. The good news: in Canada we have the option of establishing a private foundation or a donor advised fund to manage donations and glean the same tax benefits. Whatever direction you take, it’s important to put process behind your philanthropy. Why? First, there are those aforementioned potential tax savings, particularly if you’ve had a very good year financially, incurred a major tax bill and need to find creative ways to lower it. Funding your favourite charities through a donor advised fund (DAF) can deliver that result—a point I’ll be covering in much greater detail in the months ahead.
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Managing donations through a DAF also helps to avoid the constant solicitation and pressure that business owners and regular donors experience. That’s because once you find yourself on the major donor list of charities, you can expect to be inundated with constant requests to give more. While that solicitation is perfectly understandable, it can be a time-consuming nuisance. If you have a foundation or donor advised fund, on the other hand, you or your administrators can make it known that you’ll look at grant requests once or twice a year—and no more. Most importantly, organized philanthropy helps donors put greater thought into their giving. It allows them to properly assess what matters most to them and their families, then make their charitable gifts accordingly. It’s an opportunity to bring children into the conversation and make philanthropy a part of their lives from a young age. We have some Canada Gives clients who assemble their families, often at Thanksgiving or Christmas, to divvy up the year’s giving decisions. Everyone comes with their charity wish list and the family picks the recipients together. Philanthropy has created an opportunity for them to spend time together while still making a difference. For entrepreneurs, putting the process behind their philanthropy also helps to maximize the joy they get out from making their communities a little bit brighter, helping those in need and leaving a lasting legacy that extends beyond the success of their business. It’s a heartwarming experience that’s difficult to articulate. You just have to feel it to know how special it can be.
BOOK REVIEW
How to Survive the First Year in Business By: Jason Pinchoff entrepreneur/author
The first year of business is like that rollercoaster everyone warns you about, but you still wait in line and go for it. The entrepreneurial mindset is the same way: you need to jump into starting a business. No matter how many people tell you how hard it is, all usually come from a point of view of fear. My first year in business was a beautiful “stresstival”© pinchoff environment. But to start any new business you must have a few key elements.
THE PINCH LIST: 1.
Passion
2.
Process
3.
Patience
When you start a new company, passion will be key to keep you motivated during the ups and downs, but also give you a reason to wake up early and go to bed late. It will be what drives you to canceling on dinners or vacations because you’d rather work. The process is one of the most important elements because you need a “plan”. This plan will often change, But laying out your goals helps you achieve daily tasks. I believe the ideas Marcus Lemonis always talks about 'People + Process + Product helps you take your passion and sets you up for success. But you have to remember success sometimes is failure. Be okay with failure- it usually makes you see things in a new light that you were blocking off because you are too close to your business.
Patience, the most common need in any new business (think of your new business like a new relationship). You will learn nothing happens overnight, nothing happens when you think it will, and nothing will always meet your original idea. What have I learned? The key is patience with people When you own your company, you rely a lot on people and they don’t always worry about your time frame or needs. But you just need to remind yourself, unless you are paying top dollar, they will get back to you when they do and you need to be okay with that. Just learn to make other things happen while you wait. During the first year, even the first several years, be ready for things to go wrong, be ready for when they go right and be ready for things not to work. The key to all new ventures is how strong you keep your mindset. Learn to adapt, change and move on regardless if you think you are 100 per cent right, you just might not be. But there is truly no greater joy than watching an idea come to life, the people who become your team and individuals who finally see what you saw and start to talk about it to everyone. A little extra PINCH TIP – never look at any situation as a failure, because even if you close up shop, you learned lessons that no one can teach you which may apply on your next venture.
Image credit: Jason Pinchoff
I believe the ideas Marcus Lemonis always talks about 'People + Process + Product helps you take your passion and sets you up for success.
JASON PINCHOFF
Entrepreneur/Author
Originally from Hollywood, Florida, Jason Pinchoff knew from an early age that through his passion for style, dedication to hard work, an ethic developed from watching his father, he was going to make a difference. Jason harnessed the power of his mother's life-affirming approach to adversity and began to change his future. In his 20s, Jason began his career at HQ Creative, an advertising and content marketing-company, where he developed a knack for events, budget management, client relations and multimedia producer and post-production supervisor. His career escalated to playing key roles on campaigns for major brands such as iHeartRadio, the Walt Disney Company and The McGraw Hill Corporation. His unique mix of business savvy and street smarts, coupled with his determination to spread the positive outlook that saved him, indicated his next step was that of entrepreneur, where he founded A PINCH LIFE, a boutique fashion company. A PINCH LIFE's "I Don't Do Ugly" anti-bullying campaign combines his love of design and giving back.
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BUSINESS WOMAN OF THE MONTH
BUSINESS WOMAN OF THE MONTH:
RITU KOHLI-SETHI Operations Manager at Greater Toronto Executive Centre
Ritu Kohli-Sethi’s career began during the second year of her university education, as a commercial broker in the property and casualty industry in the late 1990s. After 17 years later she left her role as a Business Development Strategist at Unica Insurance to further pursue her education at the Ivey School of Business and join the family business. Ritu Kohli-Sethi oversees operations at the Greater Toronto Executive Centre (GTEC), a provider of fully furnished offices, meeting rooms and virtual services. Ritu manages the day-to-day operations of both locations. Her extensive experience includes client relations, staff management, development as well as implementation of procedures and processes to ensure both locations run with a consistent practice and level of service. In addition, Ritu is also the co-founder of a South Asian inspired ecommerce platform, MKYK.ca (www.mkyk.ca). A platform created so that everyday consumers can directly list, buy and sell their South Asian inspired, new or once worn attire, costume jewelry, accessories, etc. Image credit: Rathaur Portraits
After 17 years in the Insurance Industry and 7 years as a Business Development Strategist at Unica Insurance, you made the decision to leave and pursue your studies and eventually join your family business. What made you decide to make such a big decision in your career? I began with Unica in Business Development and as the organization began to grow and transform, I had a fantastic opportunity to work closely with the leadership team in implementing various strategic based projects. During my seven years with the organization, I was fortunate to learn so many aspects of the business and grow both professionally and personally. I realized that I was ready for the next stage and pursue higher, more strategic learning. As a result, I decided to leave the organization and pursue my EMBA through Ivey School of Business. With the support of my husband, family and the team at Unica, it was a decision, I am so glad I made. Can you tell us about your role at the Greater Toronto Executive Centre (GTEC)? This is our family business which my brother, Sam Kohli, founded with our flagship location over 10 years ago. During my EMBA, I joined GTEC, taking over operations, including staff and client management. Since then we have expanded into new business lines such as property management. We also launched a second location a few years ago. Business centres are strong contenders in workspace considerations as they offer many benefits, especially to startups, small business and subsidiaries of global companies. Therefore, an important element of my 32
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role is to ensure our brand, team and processes consistently serve our clients and meet our strategic goals. Part of your responsibilities at the GTEC is to implement procedures and processes to help in the successful management of both locations. What are some of the procedures and processes you have implemented and how have they helped in the daily activities of the centres? I believe the most important and significant transition I made was slowly shifting workflow to a very streamlined and consistent process. By this I mean, all aspects of our business processes and procedures are structured to reflect our core strategy. This includes a consistent format to train all new staff, handling clients as well as daily functions. For example, when to escalate a situation, procedures for termination of a lease, standardized pricing, and discounting practices. We implemented all our changes in phases and of course, like any transformation, resistance does occur. However, a standardized and consistent practice makes our organization transparent and most importantly our clients respect and understand how we do business. We have long-term clients who have continued to grow with us and appreciated our journey and this reflects in our retention rates which surpass the industry. Furthermore, in our small business world, all the changes made increased the flexibility for our staff to work out of different locations when necessary with the autonomy to make decisions and manage clients with ease.
BUSINESS WOMAN OF THE MONTH
What would you say is the most challenging part of your role? Challenging moments are always constant in operations, but the key is how we respond to them. Although manageable, the impact of these decisions can have a larger impact if not handled in a precise manner.
I believe the most important and significant transition I made was slowly shifting workflow to a very streamlined and consistent process. By this I mean, all aspects of our business processes and procedures are structured to reflect our core strategy.
Standardizing operations and ensuring all process and protocol set are adhered to, as part of best practices, are extremely important in a service-oriented business. Like any growing organization, there are always growing pains; however, making sure that we continue to offer consistent and stable service to our clients, remains our goal. You are also the co-founder of MKYK.ca, a South Asian e-commerce platform. What was the inspiration behind the founding of the company? My co-founder, Jasveen Rattan and I have been friends for over a decade and during one of our dinner dates, the conversation began on how our closets are overflowing with items once worn, which we accumulate from family events and never wear again. The cost of each piece is often over $200 and depending on the event, we can even spend up to $1,500 to $2,000 on these beautiful pieces. Donating or giving them away wasn't always an option we want to consider. During the time our discussions began, there weren't many options to donate South Asian clothing anyway, let alone expensive party or wedding wear. Furthermore, donated items often end up in landfills and continue to become a burden to our planet, if not repurposed. The concept of MKYK.ca, a South Asian inspired buy and sell platform for everyday consumers began to form. Not only does it allow one to buy or sell their way into savings but also encourages upcycling, repurposing fashion within the South Asian community. Can you tell us about the marketing strategies you used that contributed towards the growth and success of your e-commerce? As we are still in the early stages of this niche area. Brand building and educating our users, as well as the community, in general, has been our focus.
Online sales and once worn clothing are two areas which many folks are weary of, but if you think about it, wearing hand-me-downs and bartering is something we have done for generations, but it's a covert practice. Therefore, part of our strategy is creating acceptance around the idea of buying or selling once worn or new items which come from closets through marketing videos, interviews, community presence as well as talking to our clients through social media. Each marketing initiative has a very important goal for us and learning from why some initiatives are more successful than others is always key for us. You’re a strong believer of continued education to help in the development of personal and professional growth. Can you further explain your thoughts on that? Whether through a structured program, seminar session or something more informal, I am a firm believer in continued education, especially as a business owner. We often become so consumed with our day-to-day that we could miss newer practices or innovations in our field. It is very important to stay on top of current trends. While reading is important, so is a regular dialogue with fellow industry members or educators. The world around us is constantly changing, in fact, I often tell my daughters that the one guarantee I can give them is that things will change. With new technology, ideas, innovation nothing will stay the same. So we, as individuals should always be open to the idea of continued learning and being agile. What are some of the professional achievements, which you are most proud of?
I have gained so much from my triumphs and learned a lot from my missed opportunities as well. I am so proud of the contributions I have made to GTEC by starting with a single business centre and helping to quadruple our business with the addition of a second location and adding property management and other unique concepts in a streamlined way. I am proud of MKYK. ca. Although we are in the early stages of the business, from idea to ongoing implementation is truly a fantastic journey for me personally. Academically, getting my EMBA degree is a great achievement. I learned so much during the 18 months of school, both personally and professionally and met some wonderful fellow students and faculty members. Even though it came with its share of challenges, it was definitely the right decision for me during that phase of my career. I gained a lot more clarity and made me stronger and more confident as a person who has directly impacted the success of the organization(s) I help lead currently. On a personal note, you have quite a passion when it comes to photography and has even created a social platform to share your art with the world. What is it about the photography world that has you so passionate? I have always loved capturing moments that tell a story or fit well with a quote. With friends, I usually am the one taking candid shots when no one is paying attention and those are the most beautiful images captured. Recently, my love for nature and capturing the everyday, ordinary moments around us just became a form of therapy for me. It's my element, it helps me relax and just step away from my everyday. It's a new world, new learning curve and part of my personal growth.
I am still on my path to fulfilling my many goals.
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INSIGHTS
Insights from
Bicom's leaders When a communications business is built on the power of two; this is what happens when it is scales to three – meet Bicom communications.
Vicky Boudreau CEO and Founding Partner
Public relations has always been about storytelling, but it’s often the strengths of relationships that enrich the message. For Vicky Boudreau and MarieNoelle Hamelin, relationships within their network have been fuelling the growth of their established communications agency – which they cofounded in Montreal 13 years ago. And when the time came to expand into the ultra-competitive market in the rest of Canada, it’s no surprise they turned to someone in their own network to help them make it happen. Daniella Macri, former client and current Managing Partner in Toronto, joined the duo in 2017 to lead the growing team and complete a trifecta of leadership to navigate their ambition for global success.
Marie-Noelle Hamelin President, General Manager and Founding Partner
Daniella Macri Managing Partner
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While the roles between Vicky – the visionary fuelling business development, and Marie-Noelle – the steady and disciplined operations and HR captain, have easily coincided in harmony throughout their growth, whereas a third general manager like Daniella is straddling both. A division of roles and responsibilities along with strategic business priorities helps guide the trio on how to move the business forward, accounting for the cultural differences that implicate how business is done in different markets. This has become a competitive advantage for their clients who recognize the importance of winning in both markets under the strategic eye of one national team. And while there is often healthy debates, decisionmaking can take a little longer; one thing the three will always agree on is the significance of relationships. This is a constant in an ever-changing landscape within communications, a field that is under pressure to pivot due to a reduction in traditional media, the staggering growth of influencer marketing and shift towards all things digital. Combined with marketing departments who are seeing their own budgets tighten yet expectations are at an all-time high, the leadership team has evolved to ensure their team is equipped with the right expertise to navigate and continue to deliver meaningful results. The digital department has grown to offer media planning,
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content creation and measurable influencer marketing programs, supported by tools like Traackr, and their integrated strategists ensure all roads lead back to a brand’s business objectives. While influencer marketing has been a strength of bicom’s from their first grassroots seeding campaigns of beverages like GURU and vitaminwater, to negotiating macro-level partnerships with athletes like Penny Oleksiak and Alexandra Beaton for L’Oreal’s Vichy brand, bicom is reminding their clients that the power of nano-influencers can convert 10x more, as proven by research they commission with Callosum*. Most recently, bicom executed a multi-tier influencer campaign for Rudsak, by integrating an e-PR strategy to drive traffic to its online stores with influencers in key-markets. This particular campaign reached over 2.5 million impressions. As a growing and thriving mid-size business in Canada, the bicom leadership team relies on a supportive team of advisors and internal experts based on a premise of trust, respect and open-minded transparency. These are the key ingredients in their recipe for success and how they hope to continue to demonstrate that above all else, it’s relationships that will keep enriching their story. Marie-Noelle Hamelin and Vicky Boudreau founded bicom in 2006, innovating how to get brands noticed for the right reasons by the right people. The principles of their effective partnership formed the bicom values that guide the business today: attracting top talent and inspiring their hustle to deliver meaningful results. They are the best of friends, still share an office, and continue to rise to every challenge that comes their way. In 2017, Daniella Macri partnered with the dynamic duo to lead the Toronto office. As a former client and recovering brand marketer, Daniella completed the trifecta of women leading bicom's borderless growth. Together, they are moving the company towards their vision to create a strong network of locally-led creative communities that, together, redefine the power of influence. www.bicom.ca
SMALL BUSINESS
Four small business money-saving myths By Paul Struthers It’s hardly news that cash flow is a key issue for small business owners. According to a recent report from Ernst & Young, it is often cited as a top concern by Canadian mid-market businesses. If you’re just starting out, you know that every cent matters and have probably been inundated with enough advice about saving money that it’s difficult to know what to follow and what to ignore. Chances are, in fact, that you already knew some of these chestnut. For example, that you must spend money to make money or instead of saving, your first goal should be to purchase software or equipment that will help grow your business. Below I’ve compiled a few common money savings “tips” often given to small business owners and explain why you should do the exact opposite.
Myth 1: Spend first, save later Saving money every month should be non-negotiable, no matter your circumstances. Opening a new business requires an initial investment, yes, but if your goal is to reach a certain profit margin before you start saving, the fact is that day will probably never come. The excuses you’ll have at the beginning to not save money – cash flow is tight; you’re running a promotion; your heating or air conditioning needs to be serviced – will still exist years later. Consider saving a percentage of every invoice, even if it’s a small one. You can increase the amount once you’re used to putting away money every month. The sooner you start saving, the better prepared you’ll be for an emergency. When that emergency arrives (and it will), you’ll save yourself the stress of accumulating debt or scrambling to secure financing, which can be especially difficult for small businesses. As a business owner, saving should be the first thing you do when you’re paid. Think of it as investing in yourself and your business. Once you’ve paid yourself, pay everything else with what’s left. You might need to revise your budget at first to make it work, but regularly reviewing your finances is always a good thing.
Myth 2: Buying new equipment is equivalent to saving
PAUL STRUTHERS
Executive Vice President and Managing Director of Sage Canada Paul Struthers is executive vice president and managing director of Sage Canada. Mr. Struthersis responsible for Sage’s overall customer experience, community, product, marketing and sales strategyin the Canadian market, working alongside Sage’s cherished network of customers, partners, and accountants.
Yes, you might have your eye on a big purchase, but that doesn’t make it less important to save money. It’s as important to plan for the unknown and unexpected as it is to save up for new equipment or software that can help grow your business. What would you do, for example, if a fire destroyed your office and you had to pay a massive insurance premium? If you reached the end
of the month and were still waiting for that corporation or government department to pay for services you delivered three months ago? Yes, it’s important to invest in your business, and often that means saving up for big-ticket items like an ecommerce license or new delivery vehicle. But the key word remains “saving”. Whether it’s equipment or your finances, you should set goals for both and take small steps towards them.
Myth 3: Keep your savings in a savings account Putting your money into a savings account is convenient because you can see and use it whenever you need it. But being able to quickly and easily access your money also increases the temptation to make impulsive financial decisions. Do you really need that new laptop just because it’s on sale?
saving up for big equipment or software purchases is a better idea than buying them now and paying the credit you owe on them later. But, it’s not the only way – cutting operational costs can also help. Here are a few ideas: Share space with another entrepreneur: Try running two restaurants in a single space, or by sharing an office if your business requires an office environment. Better yet, adopt a virtual business model, conducting meetings over Skype or Zoom, renting WeWork spaces for in-person meetings, and otherwise saving on rent and operational costs. Go green: Cutting down on paper use, switching to energysaving lightbulbs and appliances, foregoing a Keurig coffee maker, and buying refurbished furniture isn’t just great for the environment – it helps your bottom line too.
Another disadvantage of saving money in the bank is that you earn very little interest. Making the effort to invest it elsewhere, whether in a tax-free savings account, RRSP, mutual funds, or online investment platform, often produces much greater returns, especially when it comes to long-term savings.
Run your business in the cloud: If you have an internet connection, you can access just about every type of business management software you could possibly need online. From email to accounting solutions you won’t need to invest in expensive hardware or have the skills to maintain it.
Money – whether making it, saving it, or sourcing it – arguably represents the biggest challenge in running a small business, and the odds are against you. According to Statistics Canada, fewer than 50 per cent of small businesses survive for 10 years. If you still want to be around not just tomorrow but in five, 10, or even 20 years, your best bet is to start making your money work for you.
Manage your inventory wisely: Research sales projections before making any purchases, so that your money isn’t tied up in surplus stock.
Myth 4: Putting cash away is the only way to save money
Pay invoices on time to avoid interest and late payment fees, and take advantage of early payment discounts whenever possible. Outsource ad hoc work, like design and copywriting, to freelancers rather than hiring a full-time employee.
As acknowledged above, investing in your business is important, and CANADIANSME MAGAZINE I AUGUST 2019 I
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EXCLUSIVE INTERVIEW
Q&A WITH
JAMES MALLIAROS
Managing Director-myWorld Canada
James Malliaros was born and raised in Melbourne, Australia. As a typical Aussie kid, he was heavily into sports including cricket, Aussie rules football, but soccer was his one true passion which began at the age of eight. His soccer journey was highlighted with the honor of representing Australia at youth level and signing a semi-professional contract at the age of 16. Image credit: myWorld Canada
As the Managing Director of myWorld Canada, can you tell us about your responsibilities and your role to give our readers a better understanding of what you do? I have full P/L responsibilities in addition to all other operational functions for the Canadian Business, which include customer service, sales, marketing, finance and SME support What are some of the services and programs that myWorld Canada offers to SME owners to help them grow their business? MyWorld Canada has many products in our portfolio but the one that supports our SME business is the Cashback Partner Program. This is a fully integrated loyalty platform that gives the SME owner the following: •
A customized loyalty card with the SME’s brand Access to our Digital Cashback Partner App Full visibility on our Cashback World Website CRM capabilities Newsletter functionality Trend and statistical analysis insights Ability to deliver ecommerce transactions (if applicable) Customer Sales Overview Customer data and shopping habits (what other retail channels have they shopped in who are members of the Cashback World portfolio. The ability to create shopping point deals for promotional use Super Cashback Module – for short term deals Registration flyers which allow the SME to register customers on site Customer Survey Module
• • • • • • • •
• • • •
The product is best described as a coalition platform program. Customers can use the card or the digital app across 1400 SMEs in Canada, over 100 on-line partners and also purchase physical and digital gift cards for some of the largest retail brands in Canada. 36
In addition, given our global operation, the shopper can use it in over 47 countries around the world. The app is geo-targeted and can display any retailer in the specific geo-targeted area who accepts the card and how to use it. The shopper receives cashback and shopping points on every transaction. Cashback ranges from 1 per cent to 10 per cent depending on the retailer. Shopping points range from 1-10 points per transaction. A single point has value between $5 and $10. The cashback is delivered directly into the customer's bank account every Thursday. The shopping points can be redeemed for deals that other SME’s offer on an ongoing basis. Its extremely user friendly and drives tremendous competitive advantage for SMEs. With our Cashback Partner Product they can compete against larger big box retail chains who have their own loyalty program, by getting to know their customers on an intimate level which can drive growth by increasing frequency and basket sizes. We have many examples of SMEs driving incremental year-over-year growth. In addition, the investment required to run the product is extremely cost effective and can be deducted as a marketing expense for tax purposes making it very attractive for a small business owners. MyWorld helps SMEs create a loyalty platform to help grow their brand. How important do you believe loyalty programs are when it comes to the success of a brand? Do you believe it plays a significant role? Loyalty programs have become part of the Canadian consumers DNA. The average Canadian has over 12 loyalty cards, but usually only participates on a regular basis with about 3-4. Canada leads the way globally with their love of anything loyalty, particularly programs that offer cashback and points. According to the recent Bond Loyalty 2019 report,
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memberships in loyalty programs continue to rise with 70 per cent of consumers more likely to continue shopping with a brand because of their loyalty platform. In addition, the five main loyalty drivers that Canadians love are as follows: • • • • •
They enjoy participating Meets their needs Makes the experience better Rewards are very appealing Consistent with exceptions
Our own internal research also supports this, our platform is easy to use and shoppers love the cashback and shopping point rewards. From an SME perspective this drives brand equity, customer retention, increased spending, frequency and an emotional and personal connection with the shopper. All of which are vital ingredients to drive competitive advantage for a SME. You have a lot of experience in the marketing industry that you could be considered an expert on the matter. What advice can you give to entrepreneurs when it comes to marketing their brand? Narrow your focus and be great at 2-3 things, no more than that. Drive differentiation against your competitors, either as a value differentiator or a cost differentiator. Don’t play in the middle, pick one lane and be the very best at it. Personalize your communication with customers, get to them intimately without betraying their trust. They are the biggest and most important brand ambassadors you will ever have. Never ever let them down. Take the occasional risk, drive key learnings then re-apply. Talk to your staff, communicate openly and share ideas. Use technology, we are at a place where the right mix of the variety of different communication tools that are currently available can make a massive difference to your business. Have fun!
EXCLUSIVE INTERVIEW
You’re a well-recognized leader with a solid background of helping businesses grow substantially. Can you tell us about some of the strategies you use that have helped you in becoming a strong leader? My leadership focus points are based on the following: • • • • • • • • • •
Create a positive energetic and inspirational culture Transparency in all aspects of the business Having Fun Empathy Measuring Success Strategic Planning Encouraging innovation and new breakthrough ideas Listening more than speaking Being humble Agility and adaptability
You’re heavily involved with diversity and cultural experience in the workplace. Do you believe that diversity and a strong cultural experience can contribute towards the growth and success of a business?
Absolutely. I have done a lot of work in this area and can say it becomes the most important driver for organizational success. There is nothing more powerful than an engaged and positive team, its amazing what can be achieved. Its hard work and it takes more than having a culture and values deck that gets comminuted once and then its put away. At myWorld we embrace our culture, which makes it fun and enjoyable. If the work is fun, then we deliver great things. We all win. Everyone is stakeholder and owns the culture we have. From a Canadian perspective, diversity is Canada. My team has roots from 15 different countries with over 10 languages that are spoken. Most of them are millennials who are proud to be Canadian giving us tremendous advantages in every single way. On a final note, you worked in the entertainment industry for over two decades but decided to leave that industry in 2011. What was the deciding factor that made you make such a huge career decision?
Having spent over 18 years in the Entertainment industry, I learnt a lot about the emotional connection fans have linked into movies and talent. Going deeper into these insights helped me understand the power of data especially around consumer behaviour. It was through these insights that I moved into the loyalty space as the Senior Vice President for TCC Global a provider of short-term loyalty strategies. They help drive frequency and basket size within the brick and mortar retail environment. And also with Omelet in Los Angeles, a creative agency that offered loyalty related insights for consumers. Its been a great career continues to evolve technologies in AI that emotional connection customers.
choice as the business thanks to emerging brings an even deeper between brands and
More customers. More benefit.
Take your business to the next level in customer loyalty. The Cashback World Partner Programs enable you to effectively engage and reward your customers while generating incremental revenue for your business. Become a Partner and gain immediate access to a global Shopping Community of 13 million members who collect Cashback and Shopping Points whenever they shop. When they shop and benefit, so do you.
partner.cashbackworld.com
Contact us at partner.ca@cashbackworld.com today to discover how to take your business to the next level.
SMALL BUSINESS CHAT
Helping Canadian SMEs grow The SMB segment is the fastest growing segment at Microsoft Canada, and we serve over 1.2 million organizations across the country to empower them to achieve more through our solutions. The Canadian SMB segment delivered over half of the net new jobs created in this country. We know technology will fuel the growth and success of the sector, so this is a critically important role in a segment so vital to the health of our nation. My mission is to ensure we help our SMBs achieve more through the amazing portfolio of solutions and partners Microsoft offers to this segment of the market. What are some of the strategies you use to help you in your role?
Hilary Zaborski
SMB Customer Segment Lead for Microsoft Canada Image credit: Microsoft Canada
What are some of the initiatives you’re hoping to put in place in your new role of Director of SMB that can benefit Canadian SME owners? Microsoft and our partners are investing in several key initiatives to help SMEs benefit from digital transformation, such as our Customer Immersion Experience and device loaner programs, offered at our retail stores across the country and via our partners, to give you hands on training on Microsoft 365, Azure and Dynamics 365. We also offer funded proof of concepts and migration services to accelerate SMEs migration to the Cloud. Microsoft is also investing heavily in technical training (digitally and in person) to benefit organizations and individuals of all size. Lastly, we have invested in sales, marketing and technical champions across the country both at Microsoft and across our partner network enabling us to support SMEs even further. As Director of SMB Customer Segment Lead for Microsoft Canada, can you tell us more about your responsibilities to give our readers a better understanding of your role? I am so fortunate to have the position leading our SMB Customer Segment for Microsoft Canada. I lead a team of sales, technical and marketing specialists who’s mission it is to design programs and campaigns at scale that inspire and meet the needs of our SMB customers in Canada. 38
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It all starts with putting the customer first, I spend a great deal of time travelling across the country meeting with customers large and small to understand the challenges they are going through, and identifying ways that Microsoft and our partners can support them to achieve more. For example Jay Klein, CEO of the Pur Company is a leading Canadian SME who exports gum that is free from chemicals, and we supported them in their rapid growth and expansion internationally through the power of Microsoft 365. Audioworks is another example of a customer we supported. They are reinventing how music is produced leveraging the power of Azure, and we are partnering closely with them to help them achieve their vision of music for everyone through the power of Cloud computing! Secondly, it starts with people and our culture. Microsoft has changed dramatically under the leadership of our CEO Satya Nadella, and we carry this change into our team at Microsoft Canada. We focus on career development and growth, creating an inclusive culture where everybody can do their best, and setting the bar high and empowering each other to surpass it. Lastly, technical skilling is essential, not only for myself and my team, but also for our partners and our customers. Microsoft is investing significantly in technical training to support the computing requirements for tomorrow. We bring a growth mindset and learn-it-all culture and are expecting our people to really invest in personal training across our entire portfolio of solutions. This is more important than ever before as the level of tech intensity in every industry is on the rise. What would you say is the biggest challenge that SME owners face and how can Microsoft Canada help them overcome these challenges? The way people work and how businesses operate is changing rapidly. For the first time in history, we have five generations in the workforce, bringing tremendous diversity in employee expectations, preferences, technology habits, and attitudes toward work. Collaborative work is on the rise. People are on twice as many teams as five years ago. “Collaborative” work – meetings, calls, answering emails – has increased by about 50 per cent and takes up 80 per cent or more of employees’ time. People are more mobile than
SMALL BUSINESS CHAT
ever – whether traveling for work, working from home, being out in the field, or at the local coffee shop. These employees need access to documents and company information from wherever they are. This increased mobility makes securing company data more important yet challenging than ever. These trends affect every organization of every size, but they pose challenges for SMBs. Many SMBs have limited resources, and their employees wear many hats. Often, they don’t have formal IT staff, so technology decisions can be complicated to navigate. Our mission is to empower every person and every organization on the planet to achieve more. For SMBs, this means ensuring that business owners and employees have access to the technologies and solutions they didn’t previously have access to in order to enable them to compete, grow and succeed. For example, Microsoft solutions gives SMEs the tools they need to operate globally, 24/7, in the most secure way with teams at the center of how they connect. Microsoft’s Azure gives SMEs the power of cloud computing at a fraction of the cost of on premises infrastructure. You no longer need to be a large enterprise with a large capital budget to turn a great idea into reality, SMEs can leverage advances such as Artificial Intelligence, and massive computing power at the click of a button. Dynamics 365 gives SMEs the best CRM and ERP system needed, to better run their operations and better serve their customers. There’s a lot of competition between Microsoft and other software providers offering similar programs and resources to entrepreneurs. How does Microsoft manage to stay competitive? Why should entrepreneurs choose Microsoft as opposed to another software? We believed strongly in Canadian business and the country’s innovation agenda that we made significant investments building a datacentre right here in Toronto and another one in Quebec City. We want to give SMBs the tools they need to grow and transform their business in the digital age. The cloud has leveled the playing field for SMBs, enabling them to access the same technology and resources as enteprises in a way that they couldn’t have done in the past. Microsoft not only offers affordable technology, products, and business solutions that allows SMBs to grow, we also offer support and resources to business owners to sustain that growth. Today, Microsoft Azure cloud services platform has emerged as the world’s most trusted cloud. Microsoft Azure offers organizations of all sizes and types a powerful and cost-effective computing, storage, data, networking and application services in a single bound. Along the way, it delivers some serious security benefits. Microsoft employs over 3,500 global cyber-security experts who work together to safeguard your business assets and data 24/7/365.
Technology has a huge impact when it comes to the success of any business. Especially when it comes to optimization. With that in mind, more and more business owners are moving to the cloud. What do you believe is the biggest benefit for entrepreneurs to move to the cloud? Speed, cost efficiency, security and innovation. Entrepreneurs now have access to unprecedented levels of compute power, at an all-time low cost, and can now turn new ideas into reality without the need for up front capital. The power of IOT, AI, Computer Vision, Block Chain, etc… is available to everyone through cloud computing. Entrepreneurs need to choose their strategies wisely, by evaluating a) how they are spending their time, evaluating what is commodity and should be moved to a cloud provider, and b) choosing that provider wisely, ensuring they are not partnering with one who will power their business on one hand, and then compete with their business on the other. You’ve been with Microsoft for over 16 years. Throughout the years, you’ve seen technology advance and innovate the world. What would you say is the biggest change / innovation that you saw throughout your career at Microsoft? I joined Microsoft in the UK in 2002, and it is amazing to look back over the past 17 years and see the pace of change. The biggest changes I have seen is how accessible technology is to everyone through the power of cloud and intelligent devices. Anyone today can be a developer, I see baggage handlers at the airport developing power apps to improve the way they work and service they give to customers. My 11-year-old daughter can create an online store for her crafts in minutes, and my 9-year-old son is coding his own games to play with his friends. The democratization of IT is the biggest change I have experienced in my time at Microsoft, and it’s thrilling to be a part of this revolution. In your expert opinion, how have the needs of SME owners changed if you compare it to 16 years ago and what impact did Microsoft have on these changes? Cybersecurity is the central challenge of the digital age. When I compare the attacks from 2002 to today it is night and day in terms of frequency, vulnerability, and damage. Every day organizations take precious time and resources away from their core business mission to defend against and recover from cyberattacks. They operate dozens of complex disconnected tools, yet the gaps between those tools remain and threats get through. Their security teams struggle to keep up and skilled expertise is scarce.
Microsoft has a holistic approach to helping customers limit their attack surface and protect user identities that can only come from a company that operates more than 200 consumer and commerical services on a global scale. Microsoft’s approach combines a unified product portoflio, an Intelligent Security Graph informed by trillions of global signals, and close partnerships with others in the indstury to provide the only truly holistic security platfrom. Our three focus areas are: running security operations that work for you, building enterpriseclass technology, and driving partnerships for a heterogeneous world. You’ve created yourself quite a reputation as being a strong innovative leader. What do you believe is the most challenging part of being a leader? The principles of leadership for me include creating clarity, generating energy and enabling success. As a leader, I find it critically important to bring all three to the table, the challenge is in understanding when to bring which aspect at the right time. I lean on great coaches and mentors, and the people I serve to help me navigate through this. Are you a strong believer that a good leader can impact the success of a company? Strong leadership during the best of times and the hardest of times can make or break a company. Leaders can create clarity, generate energy, and enable success despite constraints. Leadership is everything. What is the best advice you can give to a leader of a small business company? My advice for a SME is number one – invest in the right people to grow your business, your people are the difference. Number two – set yourself up for growth as much as you can, this is especially important in your technology decisions. Are you investing in technology that leaves doors open, while giving you the security needed for your business? On a final note, what can you tell us about the future of Microsoft for the SME industry? The Small and Medium Business segment is the fastest growing segment of Microsoft, We believe that the right technology can make a positive difference in reducing worry, encouraging innovation, and advancing success. We are continuing to invest in this segment through our partners, through the Microsoft for Start Ups initiative, digitally and via our retail stores to empower SMBs everywhere to achieve more.
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INTERVIEW
Inspiring marketing development with
Cabral Thomas Canada Market Manager
Cabral Thomas is the Canada Market Manager for Vistaprint. During his 7-year tenure, he has focused on helping small business owners market themselves professionally. Prior to Vistaprint, he has held roles at a performance management agency and a non-profit. Cabral holds a B.S. in Computer Science from Trinity College. In his spare time he enjoys a variety of outdoor activities with his wife and two children.
"One of my favorite strategies is the 80/20 rule and focusing most of my time on the work that will deliver the most value to the customer."
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Image credit: Vistaprint
Can you tell us a little bit about your role at Vistaprint and what some of your responsibilities are to give our readers a better idea about what you do? I have been at Vistaprint for seven years, serving as the Canadian Market Manager for the last four. I see my role as twofold: being an advocate for our customers within Vistaprint and being an advocate for Vistaprint within Canada. In terms of being an advocate for our customers within the organization, I try to ensure we are developing the right products and services for them to look professional across all their marketing. We have a localized and seamless customer experience, and relay important trends in the marketplace, such as the increasing importance of mobilefriendly shopping. In terms of being an advocate for Vistaprint within Canada, I strive to communicate all that we can offer small businesses. I attend events such as Canada 150 and Nuit Blanche, talk with customers at small business events, and find
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great partners such as Enterprise Toronto and Canadian Small Business Women to deliver more value to the market. What are some of the strategies you use to help you accomplish your role and to drive results? One of my favorite strategies is the 80/20 rule and focusing most of my time on the work that will deliver the most value to the customer. I’ve been experimenting with productivity tools such as Trello to help prioritize the long list of things I want to accomplish. We also use a “test before invest� philosophy at Vistaprint. With a need to make sure we are effectively using our marketing budget, we like to test new initiatives on a smaller scale before investing more. Another key strategy is networking, both with coworkers and the community. To make significant large-scale impact, I must develop relationships with a diverse array of people.
INTERVIEW
Each job has its own number of challenges. What would you say is the most challenging part of your role and what methods do you use to overcome it? The most challenging part is balancing shortterm and long-term objectives. Even with the 80/20 rule, the balance can be a challenge because it’s harder to predict the value of longerterm objectives. If I feel progress on longer-term objectives are falling behind, I will block off a day in my calendar to make progress. What would you say is the most important factor entrepreneurs should consider when it comes to online marketing? The most important thing to consider is whether the channels you’re investing in are helping you reach your goals. Canadian small business owners are time and resource strapped. The average owner spends less than three hours per week marketing their business and allocates only $1,667 per year towards marketing. So, you need to make every minute and dollar count! Can you demonstrate the value of your online marketing, or are you spending valuable time on things that aren’t bringing in more sales? The great thing about online marketing is that we can access a wealth of information about how effective different channels are using tools like Google Analytics – make sure you’re focusing on the channels that provide the biggest return on investment. After word-of-mouth, Canadian consumers are most likely to find a small business via search engines, social media or their website. Building a professional presence across these three channels is a must. Can you tell us about some of the programs and benefits that Vistaprint offers to small business owners? How can Vistaprint help SME owners grow their business? Vistaprint continues to make significant enhancements to its product selection, quality and the customer experience, evolving from a print marketing provider to an all-encompassing marketing solution. One of these developments is our Ideas & Advice Hub, an online resource offering Canadian small business owners with practical tips and inspirational stories about looking professional. Our mission with this resource centre was to help small business owners be more successful in running their business and live their dreams. More recently in Canada, we launched the Vistaprint Wish Program offering the opportunity for Canadian small business owners to grow their business, by giving away up $10,000 in funding. We created the program after regularly hearing from customers that access to funding
"Canadian small business owners with practical tips and inspirational stories about looking professional. Our mission with this resource centre was to help small business owners be more successful in running their business and live their dreams."
is a top challenge and barrier to growth. Businesses were selected from hundreds of entrants to the Vistaprint Wish Program, which invited small business owners across Canada to enter a contest to secure funding for vital items that would help them push their business to the next level. What do you believe is the number one benefit of online marketing? Variety. There are so many ways you can market your business online that are accessible to everyone, whatever your budget. From online PR and reviews to social media marketing and local SEO, there’s a range of tactics and channels at your disposal. In our Ideas & Advice Hub, you can see examples of small business owners who have successfully leveraged online marketing on a shoestring. Business owners have a lot of factors to consider when it comes to choosing the right print to promote and market their business. In your expert opinion, what is the most important element that entrepreneurs should consider when it comes to finalizing their print selection for their business? Business owners should make sure their printing company has the ability to put their logo and designs onto a variety of quality products. A new business owner will often start with a business card and expand into more products later. You do not want to have to choose a new provider every time they want to expand their marketing arsenal. Having a one-stop shop helps ensure a consistent brand, not to mention saving time. Vistaprint offers several printing options and digital marketing solutions to help entrepreneurs grow their business. Can you tell us about some of these printing solutions that Vistaprint offers to small business owners and how they can benefit from it?
Vistaprint offers a whole range of products that suit all kinds of business needs. Whether you’re looking for trade show materials, everyday marketing materials or promotional products, we’ve worked hard to create a wide range of quality products to suit everyone. Choosing the product is just the first step of the process though – Vistaprint makes it incredibly easy to design and personalize marketing materials. And if you’re not feeling creative? We even have a logo builder and design services to help entrepreneurs bring their vision to life. In addition to our print marketing materials, we’ve developed a suite of affordable and easyto-use digital marketing services to provide small businesses with the tools and know-how to look professional online. These include a website builder, search engine listings manager, social media marketing and email marketing – everything small businesses need to get and be found online. Can you tell us about any future projects or initiatives you’re hoping to put in place? What does the future of Vistaprint look like? Three of our focus areas will be: Expanding the range of products and services we offer to match what customers are looking for. Also expanding options available for existing products, for example square business cards and larger banner sizes. Creating more personalized shopping experiences that further delight our customers. Increasing the value we deliver to the market by being a good corporate citizen. On a final note, what inspired you to go into this career path? I love helping people and ultimately, marketing is about helping to connect people to things they need or want. I’m also a techie at heart, and marketing allows me to experiment with a lot of cool new tools and apps.
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Exploring SME growth initiatives with Janet De Silva President & CEO of the Toronto Region Board of Trade
Jan De Silva is a seasoned international business executive with a proven track record of excelling in on-the-ground leadership roles. As President & CEO of the Toronto Region Board of Trade, Jan is spearheading efforts to make Toronto one of the most competitive and sought-after business regions in the world. Prior to joining the Board, Jan spent 14 years in leadership roles in Asia. She served as CEO of Sun Life Financial’s Hong Kong subsidiary and Mainland China joint venture. She co-founded and was CEO of Retail China Limited, which was acquired in 2010. She later served as Dean of Ivey Asia, leading the Hong Kong campus and Asia operations of Ivey Business School of Western University.
The Toronto Region Board of Trade has recently released a report titled Defying Gravity: Building a Scaleup Ecosystem. Can you tell us what was brought on this study? What was the inspiration behind it? The inspiration for it is the work we’ve been doing through our World Trade Centre Toronto called the Trade Accelerator Program (TAP). This was a program we highlighted in 2015 and went live in 2016. It was designed to help our small and medium export-ready companies get active in exports. They go through the program and develop an export strategy, propriety to their company. We then take them to high potential growth markets aligned to their sector and then we thought we’d be off to the races. And here’s what happened. You are a really successful company in Canada manufacturing 200,000 units per year for the Canadian market, you go through TAP, and we take you to China. Your first order from China is for 2,000,000 units and it’s going to be triple that in a couple of months. So, all of a sudden, companies who were trying to get active in exports are getting a scale-up wall. We said let’s sit down and take a look at what’s happening in the scale up ecosystem and what we can be doing to help support our Canadian companies both those domestically who can benefit from support in scaling up, as well as those we are already working with the export side. How would you explain the fact that there is a limited supply of resources and support available to SME owners in the region? What do you believe is the main cause? 42
I would say the main cause for that is a couple of things. Number one, the strength of our Trade Accelerator Program is that it’s both government and private sector working together. So, in the case of the Trade Accelerator, organizations like RBC, for whom there is tremendous value in them helping their commercial clients grow, are at the table. Just as EDC [Export Development Canada] is. And so, we reflected on the situation in Canada right now, historically there’s been some wellintended government programs around, but there hasn’t been a full-court press akin to what we’ve done with the Trade Accelerator. What our report identified is there is a definite need for a scale up version of the Trade Accelerator, where we’re bringing government and private sector expertise together. Where we’re using these joint resources to identify companies who have the potential or what we define as high growth and would benefit from more formal exposure to different financial models, different technology tools, how to build leadership and executive teams, and how to look for growth markets for their businesses both in Canada and beyond. Toronto has always been considered as Canada’s tech hub and one of the best places to start and grow a business. However, because of the lack of resources, it’s falling behind global competitors. Do you believe that if it wasn’t for the lack of resources, Toronto would have the potential of being at the top internationally? As a tech hub, I would put a counter-point to that question. I was just speaking in London, England
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a couple of weeks ago, we are being globally defined right now as a leading innovation center. We are being recognized for the research and for the innovation palate that we have in market. Two things that have enabled that, is number one, the Global Talent Stream that was introduced in 2017 was been instrumental in attracting more talent to Toronto. And the fact that we’ve established such a global profile for AI, quantum computing, those types of things that are really deep in terms of where our researchers and universities are. With that said, our belief is that the coming few years for us to keep this global stature, in addition to the research capability, is how do we commercialize the developments our innovators are coming up with. That is where programs, like our scale up program, are going to be critical to help these innovators get access to market and also, look at how do they grow their business beyond. In your opinion, what are the main resources that the region is lacking when it comes to supporting Canadian SMEs in their growth journey? I think the main gap at the moment is what we’re working on next following this report. The report was to level set for us how we’re doing and what it is that other jurisdictions are effectively doing to help grow their firms. What we are now doing is saying in the absence of anything else that exists in the market right now, we are going to be working on working with government and large private sector companies to put together a program that is going to help our companies get access to the tools they need to scale up. I would say it’s just pulling
INTERVIEW
things together the way we did with the Trade Accelerator, but making that applicable to how do we help companies grow. What would you say are the top 3 business sectors that are lacking support and how would you explain that? The interesting thing is across all of our sectors there are high growth firms that would benefit from support. In our report on p. 7 we’ve broken down some examples of high growth firms and the type of industries that range from construction to ICT. What’s been missing is a formalized approach to identifying companies that are high growth and making a practical program available for them so they can start working through scaling up their business to the next level. How do you believe the lack of support and resources for Toronto SMEs is affecting Canada’s business industry? We know, again if we look at p. 7 in the report, that high growth firms, these are the ones that are growing quickly, make up 1.2 per cent of all Canadian businesses, yet they represent 63 per cent of net job growth. If we could take instead of 1.2, 2.5 or 5 per cent of our total firms to fall into that high growth category, the job growth, the job gain would be instrumental and very significant. That’s the goal we’re trying to move towards as we develop a scale up program. Can you tell us about some of the strategies that you believe should be put in place to improve the support and increase the resources that can contribute towards the growth of SMEs? We’re at work right now, we’re at the drawing board looking at the program. I think the scale of success factors we identify in the report-which are looking at everything from talent to growing sales, accessing capital, looking at process improvement, protecting IP and helping executive leadership-all of those are elements of what we need to put in place. Our starting point is very much going to be working with high growth companies or companies we feel have the potential to be high growth to do some diagnostics to understand where they are strong in these categories right now and where they need to do some deeper work to try to figure things out. Earlier, I mentioned a company that manufactures 200,000 units a year for the Canadian market, [70 employee business] and very successful in [their] category. [The company owner was] with us in China and he needs to think about what he is going to do to in order to start fulfilling these opportunities that he’s started with China. He doesn’t want to just add ten times the amount of staff to [create] ten times the amount of output. What he would like to do is double staff, but look at how he can use technology and different
processes differently. For him, scale up is a program that will need to be putting in place a deep dive into analytics around his current production methodology and insights into what things can be done for its improvement. It’s going to require us to bring together expert problem solvers in each of those areas. Sticking with that example on improving processes, Siemens is a very large, global, multinational manufacturing firm, very active in Canada and they are very much focused on working with the smaller member of their local supply chain here to help them be more efficient. They’ve got very interesting tools they can use and we’ll be talking to them about potentially being subject matter expert on improving processes so we can connect companies, where that’s their pain point, to organizations, such as Siemens, that can help them unpack their processes and look at simple things censors that can help improve productivity. The report Defying Gravity: Building a Scaleup Ecosystem talks about six scaleup success factors. Can you further explain how these factors will improve the lack of resources and support for SME owners in Toronto? The pieces around executive leadership and attracting talent can be problematic for our smaller firms because the founder tends to start it. When the founder starts she or he is usually one person that tends to do everything. As [the company] grows, it’s that ability to delegate and trade and have things done the way you like to, but get things done through others. So, that will be critical for certain participants. For others, they may be very smart engineers or researchers, but they just don’t know how to sell. They know their product inside out, they are product experts, it’s just that ability to develop sales training and understanding of how to do market identification and market access to help grow the business. Capital is sometimes about getting the right working capital financing so that you can get new equipment as required and expand. It’s about understanding how to do financial planning for your business and getting access to capital. Protecting IP [deals with] if you [have] propriety techniques you’ve developed, both within your product or process, it’s making sure your putting protection in there so you can achieve growth through IP you’ve developed. Those are the critical success factors we have identified through our research using a business advisory council of experts doing research in market with companies in Canada and also looking at best practices globally. One of the success factors is Executive Leadership. You personally have several years of experience in leadership roles where you have excelled. What would you say is the most challenging part of being in a leadership role?
There are a couple of things from my experience. Number one is having a clear definition of what strategy is. Where do you want to go? If you are here today, where do you want the business to be in five years from now? What are the key initiatives you need to undertake? For example, at the Board of Trade, we are now a year and a half into executing a five-year strategic plan. There are four initiatives we are developing. The scale up process is one of them in terms of how do we help more of our members grow. It’s having a clear idea what success looks like five years out and what are the key, new deliverables you need. What you then need to be able to do is an excellent job of recruiting and retaining great talent. It’s really making sure you have the right people run the organization who are buying in and excited about the strategy and moving things forward. To me, those are always the key pieces: know where you want to go so you can measure it and make sure you have the right people running right beside you to get you across the finish line. In your opinion, can you tell us what is the biggest mistake that leaders make which can significantly jeopardize the success of their business? The biggest mistake potentially is a reality check on the business and its potential for success. We quite often see companies that don’t succeed to their potential either simply because the founder isn’t looking for what’s next for the business and gets comfortable in a certain position or the founder may not be the right person to take it to the next level and has difficulty letting someone else drive the business forward and playing a different role in the organization. The most important thing we want to do with the program is help those companies who are high growth get all the access to resources and expertise to help them understand who they are, who their business is and what success looks like for them next. I think we can create a lot of ambition out of that and we can help a lot of Canadian businesses do much more impactful things for the country in the global market. On a final note, what advice can you give to SME owners when it comes to the success of their business? It’s understanding the strategic potential of your business, having a robust network of other SME leaders you can bounce ideas off of, and having access to company founders who started at the same size your business might be right now and have gone on to great success so you can learn from their lessons. It’s creating an ecosystem that is accessible for SMEs to fully unlock the full potential of their company.
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HR LAW
Data shows that HR law non-compliance is rife across Ontario. Here’s why it matters
By Laura Williams
W
hen Kathleen Wynne’s Liberal government passed the Sexual Violence and Harassment Action Plan Act, 2016, Ontario immediately leapt to the progressive forefront in protecting workers from various forms of workplace harassment.
LAURA WILLIAMS Founder, Williams HR Law As the founder and principal of Williams HR Law Professional Corporation and Williams HR Consulting Inc., Laura boasts more than two decades of experience providing strategic advice and legal representation to employers on a full range of labour and employment law matters.
The legislation expanded the definition of harassment to include sexual harassment, and for the first time in Canada, employers would be required by law to investigate any harassment allegations and report the findings and intended corrective action to the complainant and respondent. Organizations were also obliged to draft and update harassment policies on an annual basis. By employment law standards, the law marked a sea change in the approach to managing inappropriate workplace behaviours. It would be even better if more employers actually complied with it. According to a Globe and Mail analysis published in June, 3,563 employers were cited for 7,800 labour law violations between September 2016 and January 2018. “Of the total violations,” the Globe reported, “16 per cent were for failing to have a written policy, which legal experts consider key to preventing harassment, and 22 per cent were for failing to have a written program laying out how workers can report harassment. These were the two most-violated employer obligations, followed by the requirement to investigate all harassment complaints.” The Globe’s analysis found that full-service and fastfood restaurants combined for a whopping 1,332 violations, more than any other sector. This is not an entirely surprising finding given that franchises are responsible for labour and employment law compliance at the store level—and often struggle to meet those obligations—while the restaurant industry, generally, has long-standing issues addressing and managing workplace harassment. What the data underscores, however, is the exposure that so many organizations face when it comes to basic legislative compliance. Odds are that if compliance rates are lacklustre in Ontario, they’ll be equally low in other provinces with even less robust legislation.
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But the reality is that employment law compliance is not optional. It is a fundamental component of doing business in Canada. If employers don’t comply, they run the risk of legal challenges, litigation and labour-related fines. Each of these are costly, stressful, time-consuming scenarios that could distract entrepreneurs and their managers from operating and growing their businesses, and for a protracted period of time. These risks can also negatively impact an organization’s employer brand—the characteristics that shape marketplace perception and help leaders attract, retain and engage top talent in their industry. It’s especially difficult, yet important, to protect an organization’s employer brand in the social media and #MeToo era. Nowadays, employer indifference to issues such as workplace bullying and sexual harassment is no longer tolerated, yet will be widely discussed on platforms such as Twitter, LinkedIn or Glass Door if it’s allowed to fester. It's a tight labour market across Canada. Top professionals—especially in sectors such as technology, professional services or advanced manufacturing that are facing an acute shortage of skilled talent—can virtually choose their next employer. Millennials, especially, are highly attuned to workplace cultures and will conduct extensive research before signing on the dotted line with a new company. Employment law violations or a reputation for tolerance of harassment are sure fire red flags to a discerning jobseeker. Worse, employment law non-compliance invites greater government scrutiny. Once an employer is cited for violations, the labour ministry (and potentially other government departments such as finance) will be more likely to come knocking. The last thing your organization needs are constant intrusions from bureaucrats looking for noncompliance violations. The simple rule is this: anti-harassment laws exist for a reason. Compliance isn’t overly challenging, but it does require a proactive approach and a willingness to develop and enforce effective policies. The goods news—compliance will ultimately help improve your workplace culture and potentially bolster your brand, which helps with the retention and attraction of the talent required to meet your company’s objectives.
The Change Makers Honourable Perrin Beatty, President and Chief Executive Officer Canadian Chamber of Commerce
The Honourable Perrin Beatty, PC, OC, is the President and Chief Executive Officer of the 200,000-member Canadian Chamber of Commerce, Canada’s largest and most representative national business association. Before joining the Canadian Chamber in August 2007, Perrin held the same role at Canadian Manufacturers & Exporters (CME).
Dan Kelly serves as President, Chief Executive Officer CFIB
Dan Kelly serves as President, Chief Executive Officer and Chair of the Board of Governors of the Canadian Federation of Independent Business (CFIB). In this capacity, Dan is the lead spokesperson and advocate for the views of the Federation's 110,000 small and medium-sized member businesses.
Sheri Somerville Chief Executive Officer Atlantic Chamber of Commerce Inc.
Sheri Somerville is Chief Executive Officer of Atlantic Chamber of Commerce (ACC), the largest accredited business association in Atlantic Canada representing more than 16,000 businesses through its network of 93 chambers and 25 corporate partners.
Michel Leblanc* President and Chief Executive Officer Chamber of Commerce of Metropolitan Montreal
Michel Leblanc is President and CEO of the Chamber of Commerce of Metropolitan Montreal, Quebec’s leading private economic development organization. In this position, he is the official spokesperson of the organization, and is responsible for planning, managing, coordinating and monitoring all its operations.
Sandip Lalli President and CEO , Calgary Chamber
Iain Black, ICD.D President and CEO Greater Vancouver Board of Trade
Janet Riopel President & CEO of the Edmonton Chamber of Commerce.
Janet (Jan) De Silva, President and CEO Toronto Region Board of Trade
With a global career that has taken Dr. Lalli from Alberta to Singapore and many other countries along the way, Sandip solidified her home in Calgary when she started as the President and Chief Executive Officer at the Calgary Chamber of Commerce in April 2018.
Iain Black has lead the Greater Vancouver Board of Trade since October 2011. Over these five years, the iconic 130-year-old organization has experienced a modern renaissance, with dramatic membership growth and a rediscovered relevancy for 21st-century business, government and thought leaders.
Janet Riopel is currently the President & CEO of the Edmonton Chamber of Commerce. She has deep roots in the Edmonton community and considerable experience in managing complex, multistakeholder projects. She has worked in senior roles in the private, public, and not-forprofit sectors.
Janet De Silva is President & CEO of Toronto Region Board of Trade, a role she assumed in January 2015. As President & CEO Ms. De Silva leads the chamber of commerce for Canada’s largest urban centre, representing the business interest of 12,000 members and 200,000 business professionals across the Toronto region.
BUSINESS CHAT
REVOLUTIONIZING the
accounting industry Josh Zweig Founder of LiveCA
When I originally set out to pursue my CPA designation, it was so that I could gain a skill to make an impact on the businesses where I’d work and launch an exciting career. Unfortunately, there aren’t that many prime-time television accountant dramas and often CPAs will find themselves at odds with a certain public image, expressed in a “but you don’t look like an accountant” comment. LiveCA is an extension of that passion to make an impact in the lives of others, but also in a way that challenges the general accountant stigma and makes us proud to be CPAs. I graduated from the Richard Ivey School of Business and spent a number of years in public practice at both a national and mid-size CPA firm where I received both my CPA, CA designations as well as a public accounting license. I co-founded LiveCA LLP in 2013 which is now the largest online CPA firm in Canada with over 60 team members. I like to take advantage of this whole “work from anywhere” thing, and enjoy exploring the world with my backpack, guitar and laptop. Image credit: Josh Zweig
What inspired you to launch LiveCA? What was the inspiration behind it? When this began about six and a half years ago, there wasn’t necessarily some grand vision, I was working for a traditional accounting firm and I wanted to move to Tel Aviv because I spent some time there and I notice about 90 per cent of the work I was doing was either e-mail or phone which was nothing that innovative. So, I said to my boss, I can work on the same files, you can pay me less money, I’ll fly in a couple times a year with my own guys and I’ll work remotely. He said absolutely not, you have to be in the office. That’s what prompted me to say I’ll look into if this is something that people are willing to work with, in terms of relationships. That’s when I moved to Tel Aviv and launched this website as an online accountant. At the time, it wasn’t all that innovative, you would send me a QuickBooks file or what accounting system you are using to do your taxes, just as a regular accountant, I would charge by the hour. That was its original inception. After a couple of months of not making very much money, I met my business partner, Chad, online and he was doing the systems side. He was working with Xero and helping customers getting onto accounting software. We started working together and realized we had something there and combined the concept of advice and tax which is the idea of financial operation systems. We came together and started a partnership. Within a couple of months, we had our first employee. There was a time when our first employee said to us something like, ‘I really want to thank you for giving me the opportunity to find fulfillment in work.’ It was that comment that made us realize that this wasn’t just work remotely and eat coconuts by the beach, but let’s actually build something together that’s going to be a meaningful workplace for people. LiveCA is Canada’s first online accounting firm. How does it make you feel to have created something that is the first of its kind in the country? The idea of being first is actually something I care less about and I go back to what I mentioned about creating a workplace that people find fulfilling. I 46
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think in traditional accounting people are guilty of not prioritizing that. If you look at the Big Four model, you hire a whole bunch of people and you know the majority of those people aren’t going to make it through because they just aren’t going to enjoy their job and their going to get their CPA and go into industry. The motivation here was let’s actually build something where people want to stay in the company, find purpose, have impact on customers and have time to [live] their own life. I don’t think we’re necessarily perfect yet, but to me, it’s that kind of trailblazing that is important than perhaps being the first virtual firm. What would you say is the biggest benefit that LiveCA has for small business owners? How can it help the success of their business? First off, every business needs an accountant. There’s the tax side of the relationship that I don’t think is any different than what other tax accountants provide. What I think we do is we combine the tax advice with the system side. It’s really for business owners who say, ‘I don’t really want to do the day-today accounting, so I really need someone to lay the ground work or foundation from a larger business. So, what we do is, we understand a person’s business model and we [advise] what apps they should use, [develop] the financial workflow that makes sense to [the business], and then we present the fixed price for us to handle the full back office. The idea is as the customer grows, they can then build their own finance team and one day perhaps be completely independent, but that seed is planted in the beginning. That’s the value we provide over another traditional accounting firm that just focuses on the tax. LiveCA’s philosophy is that accounting isn’t just about numbers, but also about technology. Can you explain how technology and accounting go hand in hand? If you are just providing advice, you’re basically saying to a customer, I don’t care what systems you use, I don’t care how inefficient you are, and I don’t care what kind of operating problems you have, and I don't think it is a good idea. Sure, there is the tax advice, but there is a whole other side of advice,
BUSINESS CHAT
this case being operations. What we use technology for is to make a lot of those financial approaches efficient. Things like Zero, which is an accounting software a lot of our customers are on, which means you have online access and don’t [require] a customer to send us back up files and makes communication a lot more efficient with us. Because it’s online you are able to connect with a lot of other apps that open up a world of possibilities when it comes to good inventory and payroll systems. Ultimately, what this results in is better communication with the customer, faster data to the customer, less manual work and less costs. Today’s technology has given entrepreneurs and employees the possibility of working remotely from almost anywhere in the world. Giving accountants the possibility of working remotely from anywhere is what LiveCA is all about. How can this benefit small business owners? When we look at the principles that make up our vision, one of them is autonomy. Working remotely as far as I just want to work from the beach and that’s important to me, I think less about the coolness factor and more about the independence that you have over how you work. For an example, we have a lot of moms who work with us. They use that flexibility to be able to pick their kids up from school at 3:00p.m. and then come back to work in the evening when things are quieter and the kids are in bed. Everyone chooses their own use of the flexibility that we have. In my case, I spent a lot of time in Argentina and I lived two years in Colombia, so for me, this allows me to live the lifestyle I want to live. For Chad, he lives in an RV and is travelling around North America with his wife and two kids for three years. That’s how that flexibility benefits us, but as far as the customers are concerned, because we work online and provide the advice remotely, it also the customer flexibility. They can contact us far more rapidly and if they wanted to [live] a similar lifestyle, they can access their finances in the same way we do. What would you say is the biggest challenge that entrepreneurs face and how can LiveCA help them overcome these challenges? What entrepreneurs don’t have is time. Perhaps the biggest challenge for an entrepreneur in general is learning how to prioritize your time because there are always a thousand things to do and there are always more things to do than what you can do yourself. What your suck at in trying to do as an entrepreneur is figuring out what things am I going to do today and what things am I not going to do. I think that’s probably one of the hardest challenges because there isn’t a rule book on what you’re supposed to do first. And second, in theory, maybe an employee will have that direction, but an entrepreneur doesn’t. What we help do is take that whole decision-making process as far as what accounting system are you going to use, how should you compensate yourself, how should you invoice, what’s your inventory? All those questions that might come out of the financial side of the business, is what we answer. Because of that, the entrepreneur is than able to prioritize the other things in their business such as running the business, making strategic decisions, and relying on us to provide the data to make those better decisions.
"To me, that was a reminder at no matter how good I think I am or we are as a partnership, there is always the opportunity for outside advice or help. I think one of the best things we’ve done is seek help. Whether it’s from, in this case a coach, or perhaps more often from each other - in our company, from my other partners or team members. I think that concept of actually seeking help has been sort of a guiding principle for us and has allowed us to make better decisions and not just rely on our own view of the world."
How do you believe LiveCA’s philosophy and new trend of being able to work from anywhere will revolutionize the way that people do business? I think more and more we are seeing people work remotely. Some of the larger companies such as Google are allowing their employees to work remotely for some part of the time. I think it’s certainly a trend, so we’re not the first company to have remote employees, but certainly in the accounting space in Canada we are one of the first. I think the more this becomes a common norm, the more the customers ask their accountants to work in this way, to use this kind of software and to have this kind of accessibility means the other firms will follow. What I hope actually happens is more people have that kind of independence and timing over their own lives. [As well as], when people look at accounting, it doesn’t look as an industry that is old and unchanging, and that people can consider accountants as innovative. Can you tell us about a time when you received valuable advice that has helped you in your professional career? Only about two months ago is when I got a business coach. Once of the best pieces of advice I have ever received is, in sports as an example, some of the best athletes have coaches. To me, that was a reminder at no matter how good I think I am or we are as a partnership, there is always the opportunity for outside advice or help. I think one of the best things we’ve done is seek help. Whether it’s from, in this case a coach, or perhaps more often from each other - in our company, from my other partners or team members. I think that concept of actually seeking help has been sort of a guiding principle for us and has allowed us to make better decisions and not just rely on our own view of the world. What advice can you give to entrepreneurs to guide them on the path to success? When I started as an entrepreneur, I don’t think I really knew what I was building. I was actually at a talk the other night [and I heard a quote from who I think was Steve Mann], ‘just build something, and that will allow you to see around the corner.’ That really stuck with me because that’s how our business came to be, it wasn’t a great vision. You don’t have to have this [mentality] that I’m going to build this fantastic product, just start. Build something and once you’ve built that something, the next thing will likely come. When people say iterate, iterate, iterate, that’s kind what I mean. A lot of people might get stuck and may not be sure of which way to go, I think the answer is just do the thing you believe is right and do your best. When you accomplish that, the path will eventually become clearer and the next task and goals benefits itself. On a final note, where do you see LiveCA heading? What does the future of the company look like? When I go back to our vision, which is to effectively build a remote, profitable and sustainable CPA firm, in the next two years we hope to accomplish just that. [Where I hope to see LiveCA in the next couple of years] is every single role in the company working normal hours, contrary to the standard busy season that in accounting which includes working weekends. We’d like to be the place where everyone works normal hours, takes weekends off and has access to regular vacation. Where there is enough coverage in the company, so when someone goes on vacation and comes back there isn’t a mountain of work. Where people can support you along the way. Whether we’re a 25 million company with 150 people, I think it’s less important to us, what is important is continuing to make an impact on our customers and all the people that work for LiveCA, including myself, feel fulfilled while working normal hours and it’s the type of work we want to do.
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SMALL BUSINESS
Small business is everyone’s business:
Make your voice heard in the federal election
R
unning a small business is often about making sacrifices: you take the risks, work the long hours, deal with mountains of red tape and pay yourself last, after your employees, suppliers and taxes, so you can provide jobs and keep local economies running.
DAN KELLY President & Chief Executive OfficerCFIB Dan Kelly serves as President, Chief Executive Officer and Chair of the Board of Governors of the Canadian Federation of Independent Business (CFIB).
As Canada prepares to vote in the upcoming federal election on October 21, CFIB is putting the people who make these sacrifices front and centre asking all parties to include our recommendations in their election platforms. To this end, we asked our members what their biggest concerns are and which measures would help them most, and created a Small Business Platform to provide all parties with small business friendly ideas. We’ve spent the past few months presenting the platform to Liberal, Conservative, NDP and Green Party politicians and will continue to meet with candidates, study the platforms of the various parties and hold them accountable to their promises after the election. But as small business owners, employers and community members you also have an important part to play. In the coming months, you may be approached by your local candidates or their representatives. You will see ads, lawn signs, petitions, polls, debates and opinion pieces. I encourage you to engage with the candidates, to make your challenges known and to ask them what they’re going to do to support your small business. After all, 99.9 per cent of Canadian businesses have fewer than 500 employees and 86 per cent have fewer than five. Small businesses were responsible for 85 per cent of the net new jobs created between 2013 and 2017. Small business is everyone’s business and we want the federal parties to take notice. Here are three questions you should ask your local candidates before the election. You can count on us to do the same!
What is your plan for tackling the affordability crunch facing small businesses? Toll Free: 844-242-4400
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You are facing a slew of tax increases in
the coming years. On top of this year’s Canada Pension Plan increase, premiums for employers and employees will continue to rise for the next six years. The federal government also imposed a new carbon tax in Manitoba, Saskatchewan, Ontario and New Brunswick, and will roll it out in Alberta at the start of next year. Small businesses are on the hook for almost 50 per cent of the carbon tax revenues, but will only get a sliver of their costs back in rebates – if they spend a substantial amount of money on certain projects. Our members have told us that these new costs are unsustainable, so we’re asking all parties to halt further increases to the CPP, as well as to repeal the federal carbon tax and work with the provinces on approaches to climate change that do not negatively impact small businesses.
How will you help businesses like mine find the right people for the job? Small businesses are facing an unprecedented labour shortage – 435,000 jobs went unfilled for at least four months in the first quarter of 2019 due to a lack of interested and qualified candidates. All those job vacancies lower businesses’ productivity, cost them new opportunities and block their ability to grow. Of course, you can probably recruit less experienced workers and train them up for the jobs you need filled, but that’s a big investment of time and money. The government can help offset some of those costs – and incentivize hiring young people – by introducing a training tax credit. The immigration system could also help alleviate the labour shortage, but it needs to be retooled for today’s labour market. An “Introduction to Canada Visa” like the one we’re proposing in this election would create a pathway to permanent residency for temporary foreign workers at all skill levels, bringing more prospective staff into the workforce.
How will you make sure small businesses are at an equal footing in the financial industry? Accessing financing is a major barrier to entry and growth for small businesses, as many are denied loans by the big banks. In the last few years, the financial industry has come out with a lot of cool innovations that have great potential for small firms, including online lending. However, we don’t want to see these new players charge you usurious rates or lock you into unfair contracts. CFIB is calling on the government to ensure that there is a fair dispute resolution system in place for financial industry incumbents and
newcomers administered by an independent, not-for-profit entity that has the ability to resolve complaints.
Get involved CFIB takes its commitment to non-partisanship very seriously. We work with all parties to ensure the voice of small business is heard and we commend good policy and criticize bad policy when we see it, no matter where it comes from. To that end, I encourage all small business owners to stay informed and share their concerns with the federal parties in the lead up to the election. Visit cfib.ca/election for more information on how you can get involved.
"Small businesses are facing an unprecedented labour shortage – 435,000 jobs went unfilled for at least four months in the first quarter of 2019 due to a lack of interested and qualified candidates. All those job vacancies lower businesses’ productivity, cost them new opportunities and block their ability to grow."
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ESTATE PLANNING
Effective estate planning takes a customized approach and an
understanding of your options If there’s one common denominator among successful entrepreneurs, it’s that they’re a determined, relentless bunch who won’t rest until they bring their business vision to life. And the last thing they worry about is their eventual demise— or the estate planning that should precede it.
ARMANDO IANNUZZI
Tax Partner at KRP
Armando Iannuzzi is a tax partner at KRP LLP, a Markham, Ont.-based accounting firm for entrepreneurs. Learn more at www.krp.ca.
As I outlined in my last article, a lack of estate planning can pose major challenges for business owners whose assets and succession requirements often generate complex administrative issues and hefty tax bills when they pass away. With fewer than half of Canadians having taken the time to prepare a will or keep it current, according to recent Angus Reid data, this is a major (and unnecessary) risk exposure for entrepreneurs. Still, many can’t resist the temptation to take a one-size-fits-all approach to estate planning. Rest assured, the only way to design an effective and comprehensive estate plan is to work with a group of trusted advisors (including a chartered professional accountant, your financial advisor and an experienced tax or estate lawyer) to prepare a customized strategy that addresses your unique financial situation and objectives, while helping to maximize tax reduction and deferral opportunities. This is a highly detailed process that can take months to complete, but it’s well worth the time and effort. The good news is that skilled professionals should handle most of the heavy lifting. Your job will be to determine and communicate your estate planning wishes, then allow them to manage the accounting and legal minutiae. The bigger problem is that most entrepreneurs don’t even know what questions to ask, let alone the key high-level concepts that should be on their radar as they embark down the path to estate planning readiness. The first—and most fundamental—is ensuring that all wills and powers of attorney are current, which should include a shareholder’s agreement outlining instructions to carry on (or wind down) the business, perhaps steering a post-mortem sale, or guiding share/asset distribution activities to help minimize taxes and provide creditor
protection and ensure business continuity. Remember that if you have an outdated will upon death, your executors are still required to execute its directives to the letter. Also consider dual wills for assets that wouldn’t otherwise be subject to probate, such as shares of a private company. And be sure that your estate executors are aware of the myriad tax planning strategies available at death, one example being ‘rights and things’ income tax returns. Post-mortem planning is also key. Why? Because if the deceased held shares of a private corporation, the estate could be subject to double taxation. Options to mitigate that risk could include 164(6) loss carryback planning, pipeline planning or a combination of the two. 164(6) planning—named for the corresponding section in the Income Tax Act—essentially converts a capital gain on the deemed disposition of assets at death to a deemed dividend to the estate, thereby mitigating the exposure to double taxation, and in certain cases, with the right tax attributes, provides tax savings. The trick is that it has to be done in the first year after death (i.e. the first ‘executor year’), so time is of the essence. Bear in mind that executors must file a Graduated Rate Estate tax return (which allows an estate to pay income taxes at a graduated rate, among other benefits) to be eligible to employ this strategy. Business owners older than 65 may also want to consider options such as using alter ego or joint partner trusts, the advantages of which are confidentiality and probate savings. They also allow an entrepreneur to transfer assets into the trust at cost and defer tax until their death, or that of their partner. Overall, you want to make sure you put customized pre-mortem planning strategies in place, and lay the groundwork for your executor to implement effective post-mortem planning to deal with probate fees and, where applicable, double taxation. And you want to start planning now. Death may be inevitable, but a chaotic and costly estate succession scenario is completely avoidable.
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JANUARY 20, 2020 TORONTO, CANADA
The Biggest Gathering of Canadian Small and Medium Enterprises Photo by Banter Snaps on Unsplash
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