CanadianSME Business Magazine November Issue

CANADIANSME ISSUEE 12 NOVEMBER 2019

Empowering Canadian Small & Medium Businesses

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I CANADIANSME MAGAZINE I NOVEMBER 2019

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I CANADIANSME MAGAZINE I NOVEMBER 2019

A Letter from the Minister of Small Business and Export Promotion

As Canada’s Minister of Small Business and Export Promotion, it is my job to help Canadian businesses start up, scale up, and access new markets.

This is why I am so pleased to extend my greetings to everyone attending the CanadianSME Expo 2020.

Small and medium sized businesses account for 99 per cent of all businesses in Canada, and support millions of jobs.

Businesses like yours sustain local economies around which great Canadian communities are built; the importance of small and medium sized businesses cannot be overstated.

I want you to know that our government is here to support your success. That is why we have lowered the small business tax rate to 9 percent, making it one of the lowest in the world. It is why we have pushed credit card companies to lower the fees they charge businesses, and why we are cutting red tape. To date, we have removed over 400 administrative burdens to make it easier for you to do business.

At the same time, we are opening the door to 1.5 billion new customers around the world through our 14 trade agreements. We are pushing to grow the number of women-owned and led businesses through the Women’s Entrepreneurship Strategy. This $2 billion dollar investment will help us double the number of women-led and owned businesses by 2025.

We have also launched the Canada Business App, which makes it easier for small business owners to navigate government services, receive tailored recommendations and personalized notifications on funding applications.

We are making these investments because we know how important small and medium sized business are to our country and to our economy. To the team at CanadianSME: congratulations on your impressive expansion, and I look forward to hearing about your continued success.

Sincerely,

The Honourable Mary Ng, P.C., M.P.

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I CANADIANSME MAGAZINE I NOVEMBER 2019

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COL IN MCISAAC

MIKE T REMBL AY

JAMES M EDDI NGS

Managing Director, Lenovo Canada

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Deputy Minister, FedDev Ontario

D E REK LUKE

RA N DA LL SMA LLB O N E

PAU L ST RU T H E RS

SU SAN ST. AMAN D

MARIA LOCKER

President, CEO and Member of the Board of Directors at Astron Connect Inc.

Executive Vice President & Managing Director of Sage

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CA R M I N E C I N E RA R I

M E NE L AO S ( M A NNY ) A RG IRO PO ULO S

MAT T HE W T Y RE R

CARIN N E CHAM BE RS- SAIN I

President at Sharp Electronics of Canada Ltd.

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V IC F E D E L I Minister of Economic Development, Job Creation and Trade

Chief, SME Stakeholder Engagement

Technology Evangelist Commvault SME

L AU R E N C E CO O KE

J E F F DAW L E Y

RICK MOORE

CEO - nanopay Corporation

Founder & President Cybersecurity Compliance Corp.

Forum Chair - MacKay CEO Forums

TA H I RA B HA R MA L

RIC H A RD TO K E R

Co-Founder & Chief Strategy Officer Mentors Consult

Branderos Account Director/ Project Manager/Educator​

I CANADIANSME MAGAZINE I NOVEMBER 2019

CEO and Co-Founder Diva International Inc. Makers of "The DivaCup"

MIKI VE L EMIROVICH

CEO at Muse®

by Interaxon Inc.

SHIRAZ SI DDI QUE Founder - Leverage Consulting

CHARL IE REGAN​

President - Cargo Canada

CEO- Nerds On Site

JOEL SEARS ​

MARGO CRAWFORD

N AN CY WI LSON

Branderos Creative Director/ Copywriter/Educator

President & CEO - Business Sherpa Group

Founder & CEO of the Canadian Women’s Chamber of Commerce & President, Novus Accounting

WELCOME With the end of the year approaching and the year 2020 less than two months away, Canada’s small business industry has never been stronger. With new businesses being launched regularly and more and more resources becoming available for the SME industry, being a small business owner has never felt better. We at CanadianSME could not be prouder of all we have accomplished to recognize the importance of SMEs for Canada’s economy. This why we seek out some of the most impressive leaders in our country so that they can provide their expert knowledge as well as their guidance that can contribute to the success of Canadian SMEs. This month is no different when it comes to providing quality content. With articles and interviews focussed on manufacturing as well as cyber security, we are very excited about our November issue. Among our top leaders being featured this month are Hans Blesse, President at BMW Group Canada, Theo Van Wyk, Chief Technology Officer at Scalar Decisions, and off course our Business Woman of the month, Nesh Pillay, founder of Press Pillay.

Additionally, we also have some very informative articles this month by some of our regular contributors such as Anne De Aragon who talks about the benefits of e-commerce in Fuel Your Business Growth by Getting Online. Miki Velemirovich, president of Cargo Canada talks about The Myths and Realities About Millennial Small Business Owners. Other insightful articles in our November issue include How to build your export strategy, Is your Business Built to Sell?, Retail Resurrection and the Top 10 Manufacturing Trends in Canada. With many more exclusive interviews and articles, we promise that the November issue will have you asking for more!

As always, we are very grateful to have a growing list of loyal readers and contributors who believe in us and our vision of growing Canada’s SME industry. We hope you enjoy this month’s issue and happy reading!

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CANADIANSME Empowering Canadian Small & Medium Businesses

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Contributors

Lissa Ricci Anne De Aragon Laurence Cooke Hans Blesse Joanna Bender Nesh Pillay Shiraz Siddique Ken Thrasher Eric Gales

Miki Velemirovich Armando Iannuzzi Laura Williams Winston Stewart J. Denise Castonguay Theo Van Wyk Silvia Pencak Marvin Cruz

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Published by CMarketing Inc. 2800 Skymark Avenue, Suite 203 Mississauga, ON. Canada. L4W 5A6 Copyright © 2019 CMarketing Inc. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited.

The contents in CanadianSME Magazine are for informational purposes only. Neither Cmarketing, the publishers nor any of its partners, employees or affiliates accepts any liability whatsoever for any direct or consequential loss arising from any use of its contents.

CONTENTS

22 nanopay

Redefining the Payment Industry Laurence Cooke

nanopay Corporation Founder and CEO

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BUSINESS WOMAN OF THE MONTH

NESH PILLAY

Founder of Press Pillay

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Awsome

ways AWS drives SMB Innovation

THOUGHT LEADERSHIP

Competing Against the Whales in Your Industry

SHIRAZ SIDDIQUE Founder - Leverage Consulting

ERIC GALES

Country Manager - AWS Canada Inc.

EYE ON TECH

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BMW: The Ultimate experience felt in your heart and on the road

GETTING ONLINE

EXCLUSIVE INTERVIEW

HANS BLESSE

President at BMW Group Canada

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Fuel your business growth by

I S YO U R FA C T O RY F U T U R E- P R O O F ?

ANNE DE ARAGON

By Lissa Ricci, Vice President of small business solutions for Cisco Canada

Vice President and Country Manager for GoDaddy Canada

WHY ENTREPRENEURS NEED TO DO A BETTER JOB OF GOING

GLOBAL AND PROTECTING IP

By Eric Bosco

ERIC BOSCO

Chief Business Development Officer at Mitacs Eric Bosco is chief business development officer at Mitacs, a national, not-for-profit organization that connects top-level research with private-sector needs. In his role, he works closely with governments, academia and industry to promote innovation. An entrepreneur and business leader who helps companies grow through research and development, he was founder and CEO of XYZ Imaging prior to joining Mitacs in 2007.

Canada is a big country, but not a big market.

The earlier start-up entrepreneurs realize this and turn their attention to international markets, the more likely they are to outperform their peers. Unfortunately, data shows that too few SMEs are exporting their goods and services too late, at a big cost to both themselves and our economy.

Just as SMEs need to do a better job of understanding their market opportunities, their business ecosystem—organizations that help them get good ideas off the ground—has to do a better job of responding to this glaring vulnerability. Righting the ship means a greater focus from both sides on two things: connecting with international markets early and protecting intellectual property. Getting these critical elements right will result in job creation and economic growth for Canada.

PROTECTING IP

Studies show that SME exporters generate twice as much revenue on average than other SMEs. They tend to grow faster and invest more than their non-exporting counterparts.

The same shortfall results when companies don’t have a proper IP strategy, which happens too frequently in Canada. For many start-ups, ideas and innovation are their business, yet it’s essential that they take steps in the early days of their ventures to protect their intellectual property through patents, trademarks and copyright. That’s what investors are looking for and that’s why up-and-coming players in Canada’s ecosystem need to do a better job of ensuring our entrepreneurs are more literate about IP—they have to hold on to it longer and monetize it.

For Canada, having more SME exporters means succeeding in our international trade strategy.

While only an estimated 10 per cent of our SMEs are now exporters, they accounted for 42 per cent of total merchandise exports in 2017.

The potential upside of doing a better job is huge.

When going global, we need to guard against the danger of focusing on only one market.

Currently Canadian SME exporters face a substantial concentration risk because the U.S. accounts for 74 per cent of the value of I CANADIANSME MAGAZINE I NOVEMBER 2019

Canadians are really good at innovating, but globally, when it comes to sales and access to foreign markets, we’re not seen as risktakers—particularly when it comes to scaling up. This problem may be tougher to fix than our over-reliance on the domestic market and may call for a cultural shift.

GOING GLOBAL

A good example is Montreal computer software company Beeye. Its B2B management solution aims to improve profitability while ensuring employee well-being through a “smart time management assistant.” Last year, supported by the Mitacs Entrepreneur International pilot program, Beeye converted a $4,800 investment into more than six new international clients and $97,500 of income in 2018, and is forecasting $650,000 this year.

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exports. Diversification is imperative, especially to emerging markets and Europe. Mitacs is increasing efforts to address the SME exports gap with the launch of its Entrepreneur International program. This unique approach helps new companies succeed in the global marketplace by connecting them with incubators in partner countries, opening doors to potential new customers and providing opportunities to increase sales in worldwide markets. Yet, this is only a start to boost our country’s economic growth.

With other countries excelling in IP protection and commercialization, foreign buyers all too often scoop up Canadian start-ups that struggle with these challenges too soon in their growth trajectory. They’ll scale it, take it global, and make the real money, leaving Canadian startups short-changed.

If Canada is going to continue to power startups, we need to do more to help entrepreneurs expand their market view, master sales to international markets, and properly structure their IP strategy. For the health of our economy, the time to act is now.

GOT A NEW CONTRACT ABROAD BUT NEED CASH FLOW? EDC CAN HELP.

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Heading in the right direction:

Photo Credit: www.edc.ca

How to build your

EXPORT STRATEGY

Sponsored by EDC

he process of building your own export strategy will be made much simpler if you rely on the expert advice available from these four key export partners: •

Business Development Bank of Canada (BDC)

•

Trade Commissioner Service (TCS)

•

World Trade Centre—Trade Accelerator Program (TAP)

•

Export Development Canada (EDC)

Representatives from each organization took part in our recent webinar, Action plan: Mapping out your export strategy. The program also included helpful insights from exporting panellist, Kevin Klaassen, co-founder and chief executive officer of SK2 Custom Homes based in Manitoba. Klaassen has used each of these export partners to develop and execute his own successful export strategy. By following these basic steps in building your plan—and forging partnerships with these export facilitators— you’ll be ready to take on international markets, grow your business and your bottom line.

S T E P 1:

DETERMINE IF YOU’RE READY TO EXPORT Before you contemplate doing business in a new international market, make sure your company is firing on all cylinders back home. Are you ready organizationally, operationally and financially? Use these resources to find out.

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Export quiz: Are you ready? This quick, 15-question assessment tool offers a basic primer to get you in the headspace of where your company needs to be before it’s ready to export.

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Step-by-step guide to exporting: Available in HTML or PDF format, this guide covers each step in the export journey—from assessing your export potential to understanding the legal side of international trade.

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International readiness assessment: Offered through BDC’s advisory services, this three-hour interview of your management team will analyze your organizational and operational strengths and weaknesses, as well as your financial standing to evaluate your company’s capacity to support international growth.

Other BDC resources and articles to explore:

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Financial ratio, calculator and benchmarking tools

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7 key questions your export plan should answer

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3 essential steps for entering a foreign market

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5 tips to successfully export your services

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Trade Data Online: This searchable tool enables you to enter your harmonized system (HS) code to generate customized reports on which countries are buying your type of products.

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Trade Commissioner Service—Market Reports: Access more than 200 reports with specific information about your sector or product. Once you’ve done your own research and narrowed down your top two markets, contact a trade commissioner for a free market potential assessment.

S T E P 2:

ANALYZE WHICH INTERNATIONAL MARKETS ARE BEST FOR YOU Once you’ve determined that you’re ready to export, you need to analyze which markets will yield the highest returns for your product or service. That includes having a thorough understanding of your competition and how to tweak your value proposition to stand out from the crowd. Conducting preliminary market research using reputable online sources is key.

To get you going, here are three free options.

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Photo Credit: www.edc.ca

EXPORT DEVELOPMENT CANADA

•

•

U.S. Commercial Service: Although intended for American companies, much of the information available on this site is equally relevant to Canadian companies in terms of international market demand. Each Country Commercial Guide provides eight important factors to help you decide if a market is right for you.

Trade shows: One of the most efficient, costeffective ways to verify market potential is by attending a trade event or trade mission. You can search for trade events where TCS will be present, or contact your industry association to see if they’ll be participating in an event in your country of interest.

S T E P 3:

CREATE YOUR MARKET ENTRY STRATEGY A market entry strategy defines the process of getting your products or services into the hands of your customers. There are many different ways to do that, depending on what you’re selling, your financial situation, potential markets and the length of your sales cycle, to name just a few factors. In fact, part of the market research you do during Step 2 above will help inform the best way to sell into your new market.

•

•

•

Direct sales: One of the more traditional avenues, this involves direct sales generated by in-person contact during a tradeshow, for example.

Agents and distributors: Finding in-market representatives to sell your product and service is an efficient way to plug into local knowledge of customers, preferences and logistics. If this mode proves successful, over time it’s usually replaced by a company’s own dedicated local sales team, or through mergers and acquisitions.

E-commerce: This fast-growing strategy is experiencing explosive growth. Today, e-commerce represents $1.4 trillion in annual trade revenue, a number that’s expected to reach $5 trillion within the next two years.

Ensure you have a world-class website, and if you choose to use an online marketplace, use

Photo Credit: www.edc.ca

the leading one in each key market. Amazon might be the North American leader, but in China, it’s Tmall, JD, or Kaola, depending on what you’re selling.

S T E P 4:

GET FINANCING AND MINIMIZE RISK While doing business in international markets vastly improves your sales potential, it requires additional financing, plus it comes with its own set of risks. While traditional banks are an invaluable resource, they can be hesitant to offer the kinds of financing required to go global. Here are some solutions offered through Canada’s trade-related organizations.

•

CanExport: If you’re exploring a new market, this TCS program for small- and mediumsized enterprises (SMEs) provides funding to cover up to half of your international market development activities.

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Xpansion Loan: This BDC solution provides the financing required for growth, without putting your cash flow at risk. It offers flexible repayment terms with limited personal risk.

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Purchase Order Financing: A joint EDC-BDC initiative, this solution covers up to 90% of your PO amount, enabling you to take on larger contracts, while preserving your line of credit and working capital.

•

Credit Insurance: EDC’s credit insurance covers up to 90% of your losses should your customer be unwilling or unable to pay for your goods or services.

•

Foreign Exchange Facility Guarantee: Currency fluctuations can take the win out of your sales, but this EDC solution protects against foreign exchange risk without posting collateral.

YOUR GO-TO TRADE PARTNERS Business Development Bank of Canada (BDC) BDC is the only bank devoted exclusively to Canadian entrepreneurs. They offer flexible business loans, venture capital and advisory services. They help SMEs work smarter with practical advice on business management, increasing revenues and optimizing operations.

They can help prepare you for innovation, growth and international expansion by ensuring your business is more agile and efficient. They provide coaching for small businesses and can help you prioritize your digital investments. For companies with an aggressive expansion agenda, check out the Growth Driver Program.

Trade Commissioner Service (TCS) With more than 1,000 trade experts working in 160-plus locations around the world, the TCS provides knowledgeable on-the-ground support that will get you exporting faster and better. Begin by reaching out to a trade commissioner here in Canada. They’ll help prepare you to export, then put you in touch with the international trade officers in your most promising market. Those in-market commissioners will introduce you to the trade partners you’ll need to succeed—from lawyers, accountants, translators and cultural interpreters to agents and distributors, customs brokers, government officials and potential customers.

World Trade Centres—Trade Accelerator Program (TAP) The World Trade Centres located throughout Canada offer trade-enabling programs, including the hugely successful Trade Accelerator Program.

Originally offered through the World Trade Centre in Toronto, it’s now available in major cities across the country, so search for the one nearest you. TAP Canada provides training, workshops and exposure to leading exporting advisors. Once you’ve completed the program, you’ll have a vetted export plan that will put you on the path to international success. On average, TAP participants reported an 18% rise in their international sales within one year of completing the program.

Export Development Canada (EDC) By providing risk-management, financing and working capital solutions, EDC helps Canadian companies expand into international markets, without taking on unnecessary risk. Their Connections Program can help you do business with leading international buyers. Contact the Export Help Hub with your trade questions. The Economic and Political Intelligence Centre provides free trade and economic insights for global markets, including: •

Global Export Forecast: A biannual forecast that identifies the major forces affecting the world economy and their implications for Canadian exporters.

•

Country Risk Quarterly: This interactive guide offers timely economic and political information on 50 leading international markets.

•

Global Economic Outlook: Provides insight on the global political, environmental and economic shifts that provide exporters with new risks and opportunities.

www.edc.ca

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TOP 10

MANUFACTURING TRENDS IN CANADA Photo Credit: Depositphotos.com

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he manufacturing industry has significantly evolved in Canada over the last few years. One of the main reasons behind the constant evolution of Canada’s manufacturing industry is without a doubt the new development in technology. We live in an era where technology is affecting many industries. Therefore, it’s no wonder that the manufacturing industry has been impacted by the new discoveries in the tech world. With that in mind, we can safely say that the top 10 manufacturing trends that we are seeing at the moment have largely to do with technology.

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Artificial Intelligence (AI)

On of the most popular manufacturing trends is without a doubt AI. We hear of Artificial Intelligence everywhere. So, it comes to no surprise that it’s been incorporated in manufacturing. Some of the trends we’re already seeing in manufacturing and will definitely be seeing more of in the near future are facilities that have grown into connected networks of people and machines with supply chain assets, design teams and production and quality control. All of which has been combined into a highly intelligent engine that monitors everything closely to be able to provide valuable data and insights. There are concerns that eventually AI will replace human workers and therefore, reducing job opportunities, one of the main benefits of Artificial Intelligence is the increase of efficiency and productivity.

Data Utilization

Data management is one of the main ways for companies to be able to see how productive they are? And what are some areas of improvement? However, it’s no longer enough to simply be able to manage the mounds of data generated by manufacturing processes.

Companies need to think outside the box and come up with innovative solutions. Therefore, embracing technology and investing in business intelligence hardware that can provide a better assessment of their data is one of the big trends in the manufacturing industry at the moment. With organizational data being a complex issue, more and more companies are taking the time to invest in tools and equipment

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that can not only increase their productivity, but also their profits. As the world of technology is consistently evolving and new innovations are being discovered regularly, it won’t be long until there is an increase in opportunities in data utilization.

Intelligent Manufacturing

Intelligent manufacturing helps business owners better optimize organizational systems, improve product quality, increase efficient distribution of resources and positively impact customer service. With the new developments in digital technology, intelligent manufacturing is on the rise. Integrated systems have made it possible to allow communication and collaboration between equipment and people.

Therefore, manufacturing companies can now better create customized products efficiently for mass production. It not only increases customer engagement, but it also positively impacts the relationships with equipment end users.

The Internet of Things (IoT)

One of the biggest and transformative trends in the manufacturing industry has to be the combination between networked sensors and intelligent devices with connected equipment. It changed traditional supply chains into interconnected and dynamic systems. Additionally, it’s also changed the way products are made, increased organizational efficiency, reduced costs and improved safety within companies. The Internet of Things has already impacted greatly the manufacturing

9 5 10 6 7 8 industry. However, it’s safe to say that there’s still room for improvement. For starters, the machineries can include built-in sensors and therefore be presented as not only a product, but also a service.

Meaning that its owners can regularly monitor their equipment remotely and provide maintenance, repairs as well as any necessary upgrades automatically. With that in mind, the IoT technology now goes beyond helping manufacturers improve productivity and efficiency.

Workforce Training

It’s safe to say that there is a definite worker shortage in the manufacturing industry. So much so that it’s become a serious problem in 2019. One of the biggest reasons behind the shortage is the inability of finding qualified people. As it stands, there are three times as many open skilled labour positions than are being filled. On a positive note, seeing as how big of an issue it has become, companies are working on finding creative ways to address the skilled worker shortage.

Initiatives such as on-site training programs and job shadowing are helping companies close the gap of the shortage of qualified employees.

By investing in proper training and education, companies within the manufacturing industry can begin to connect with the workforce and develop them into qualified employees.

Predictive Maintenance Technologies

The most expensive problems that manufacturers face is equipment failure. Having their equipment breakdown for even one hour can cost up to thousands of dollars in loss. In fact, a recent study performed

by Information Technology Intelligence Consulting revealed that 98% of companies have stated that a single hour of downtime can cost up to over $100,000. Therefore, more and more manufacturers are investing in technologies that will be able to predict any issues their equipment may have to avoid any loss. Additionally, regular maintenance of their equipment is also a popular trend among manufacturers. By incorporating predictive maintenance technologies, it can reduce up to 20 per cent a company’s maintenance cost and up to 50 per cent for any unexpected outages. Predictive maintenance programs monitor equipment on a regular basis and lets manufacturers know when they are due for maintenance as well as alerting them of any unexpected problems.

3D Printing: Increasing Production and Reducing Cost

One of the biggest technology discoveries that has impacted the manufacturing industry is the invention of the 3D Printer. The biggest benefit for manufacturers due to the 3D printing is the increase in production and the reduction in costs. Additionally, manufacturers now have the possibility of producing on demand as opposed to having it manufactured and warehoused. Already incorporated by the automotive and aerospace manufacturing industry, 3D printing has made it possible to complete products on site and in a cost-effective way.

Leveraging Supply Chain for Competitive Advantage

With several manufacturing companies in business, remaining competitive is key. However, to remain competitive in the manufacturing industry, companies need to provide more value to their customer than their competitors. Obviously, pricing is one of the key factors when it comes to staying competitive. But it’s not the only thing that customers are looking for. In fact, many manufacturers are actually distancing themselves from price wars by leveraging new technologies that simplify supply chain management. As a result, this brings them many competitive benefits such as efficient business operations, increase of visibility and better control of inventory, a decrease in operational costs and an increase in customer satisfaction and retention. According to a recent study by PricewaterhouseCoopers (PwC), 33 per cent of over 2,000 industrial companies have digitized their supply chain.

Additionally, approximately 72 per cent have confirmed that they are expected to do so by 2020.

A Shift in Focus from B2B to B2B2C

For the longest time, manufacturers had a business model that was best described as a B2B focus. However, recently there’s been a chance in focus. Many manufacturers have now implemented a B2B2C business model. Meaning that they are now business-to-business-to-consumer.

On top of price and brand control, faster time to market and better customer data, there’s also a huge increase in profits. Seeing the many benefits of selling directly to consumers, it’s no wonder that more and more companies have switched up their business focus.

Enterprise Resource Planning (ERP) Systems

It’s been proven that ERP is key to building a lean and competitive advantage for small and medium sized manufacturing companies.

Not only does it modernize processes by automating all business operations and delivers precise, real-time information, it also reduces the administrative and operational costs. This creates an opportunity for manufacturers to proactively manage operations, avoid interruptions and delays, break up information roadblocks and help users in making faster decisions. By giving manufacturers the option to choose a speedy implementation ERP system, they become more productive.

Photo Credit: Depositphotos.com

CANADIANSME MAGAZINE I NOVEMBER 2019 I

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EYE ON TECH IS YOUR FACTORY

FUTURE-PROOF?

By Lissa Ricci, Vice President of small business solutions for Cisco Canada

I admit, in an era of unprecedented technology advances, writing an article about a future-proof factory floor (… or any business environment) may seem disingenuous. After all, what is bleeding-edge today will be table stakes tomorrow.

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But small businesses – and the growing manufacturers among them – should take the idea of future-proofing seriously. Because with the right mix of strategy, culture, and technology…it is possible.

From a technology perspective – future-proofing begins with the right network. For manufacturers, that translates to an industrial IT network that unifies, protects, and streamlines data.

The advantages an industrial IT network creates on the factory floor — improved product quality, machine utilization and a reduction in unplanned downtime, to start — breeds continued success for early adopters. And the bonus for small businesses? This advantage multiplies the longer it takes your competitors to adopt the same solutions.

But there’s more to a future-proof factory than the right network (although that’s a big part).

Here are the four elements every growing manufacturer needs:

MUST-HAVE #1: TALENT

MUST-HAVE #4: CULTURE

Investing in your people and technology go hand-in-hand. Without the right technology, your people cannot produce their best work. Without the right skills and talent in your organization, even the best technology will go to waste.

Building a factory for the future requires leadership. Implementing the items above can require significant investments that should not be ignored. To be successful, you must fully commit to these changes and initiate a cultural shift for employees to follow. Data supports that manufacturers who make these changes see improvements in factory productivity, uptime, and machine health. Introducing these concepts to your team and having a conversation around factory vulnerability is a good way to gauge readiness for a future-proof factory.

A future-proof factory requires the right technology and the right talent to operate it. An investment in video conferencing technology, for example, not only makes it possible to introduce remote troubleshooting and video on the factory floor — it also provides a way to train employees and offer continuing education programs.

MUST-HAVE #2: CYBERSECURITY

The demand from customers for highly personalized, ready-made products will not decrease. The manufacturers that can deliver on these expectations will have the technology, people and culture to thrive in the digital era. I hope you are one of them.

The introduction of an IT network to the plant floor has created new challenges for IT and manufacturing leaders. One of the most significant is cybersecurity, as factories continue to be one of the most attractive targets for malware and ransomware attacks. The reason? Aging equipment with little (or no) cybersecurity built-in.

One-fifth of Canadian manufacturers admitted recently that they have not taken any steps to defend against cyber attacks. If a bank told you they haven’t invested in cybersecurity solutions, would you trust them with your data?

At a minimum, any plans to future-proof your factory must include essential security solutions that protect your network, users, and devices.

The good news is that these are readily available as cloud-based products, which decrease the complexity and cost, making them more attainable for growing businesses like yours.

At Cisco, we have cybersecurity solutions that meet these needs: Umbrella, Advanced Malware Protection for Endpoints, and our FirePower line of next-generation firewalls. But do your research. Look into where you need to invest first to secure your manufacturing environment, and pick the solution that is right for your needs.

A FUTURE-PROOF FACTORY REQUIRES THE RIGHT TECHNOLOGY AND THE RIGHT TALENT TO OPERATE IT. AN INVESTMENT IN VIDEO CONFERENCING TECHNOLOGY, FOR EXAMPLE, NOT ONLY MAKES IT POSSIBLE TO INTRODUCE REMOTE TROUBLESHOOTING AND VIDEO ON THE FACTORY FLOOR IT ALSO PROVIDES A WAY TO TRAIN EMPLOYEES AND OFFER CONTINUING EDUCATION PROGRAMS.

MUST-HAVE #3: THE RIGHT INDUSTRIAL NETWORK Most factories have an industrial network. The problem is that many legacy industrial networks are flat, with no segmentation of traffic between controls, process devices, supervisory devices, and factory operations. If that’s a bit too inside baseball, then imagine your IT network as a house. Usually, a house has doors that separate rooms, and some of those doors have locks to make it especially difficult to enter.

In a flat IT network, your house has no doors (or locks). Everything is open, and there are no barriers between machines. Consider the impact, then, when a hacker compromises one of your machines – essentially, they’ve been given access to your entire house with no way to limit the damage caused.

The other risk of a flat network is bandwidth. Factory managers run the risk of adding devices that can’t be supported, out-scaling the network and causing outages.

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LISSA RICCI

Vice President of small business solutions for Cisco Canada Lissa Ricci is vice president of small business solutions for Cisco Canada. She is passionate about technology and how it can help growing businesses achieve their goals. See how our solutions can help your business at cisco.com/ca/smb.

CANADIANSME MAGAZINE I NOVEMBER 2019 I

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YOU WANT YOUR BUSINESS

TO SUCCEED. WE’RE HERE

TO HELP MAKE THAT HAPPEN. ADVOCACY

RESOURCES

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Don’t wait for the next election to get governments’ attention. We make sure they hear from you every time their policies affect your business.

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We’ve taken the stress out of choosing providers for services like banking and shipping. Save with our exclusive discounts.

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FUEL YOUR BUSINESS GROWTH

BUSINESS GROWTH

BY GETTING ONLINE

By Anne De Aragon

Vice President and Country Manager for GoDaddy Canada

Photo Credit: Marissa Grootes, Stil Classics

F

uel your business growth by getting online. Creating an online presence has become essential for entrepreneurs and small businesses to connect with consumers, partners and suppliers to help drive growth.

According to our recent Global Entrepreneurship Survey, results showed that more than a quarter of Canadian small businesses respondents estimate that at least half their sales will come from online drivers in the next five years.

not! It’s important for small businesses to think about how they may be missing out on other opportunities, if they are only relying on word-of-mouth, referrals or social media to get new business. A website is there to provide information about what you do for people looking for a product or service in your area.

Your competitor is likely to have a website and may pick up those new clients that may have been yours.

People today expect businesses to have a website so they can find information about the products and services they’re interested in more easily. Having a website gives you the ability to be more visible and provide information about your business 24X7, while also allowing you to create the experience you want your customers to have for your business.

Yet, from the survey, we were encouraged to learn that small business owners who already had a website, responded that they were more optimistic about their growth prospects compared to those without, with 64 per cent saying they expect their business to grow in the next three to five years.

Accessibility is key. Consumers still expect companies to have a website even if they don’t conduct business online. Companies that are not easily accessible or visible to consumers are potentially limiting their new business growth opportunities.

Creating a website doesn’t have to be a daunting process. Fortunately, you no longer need to be a tech expert to create a website.

Today, website-building platforms give entrepreneurs and business owners the tools they need to create and manage an online presence for their business.

Not all small businesses have websites. In Canada, the survey also showed that only 38 per cent of small business respondents reported having a website. They may think it’s too hard, too time consuming or expensive, but it’s really

GoDaddy, for example, can help you get up and running with a professional looking site really quickly. We talk with thousands of customers every day so we’ve learned a lot about what tools and services people need. And we offer

24X7 US based phone or chat support if you have any questions at all. Our website building tools offer a vast selection of templates and options to create unique looking websites that are easy to build. There are sample photos and content already embedded in the templates that you can use or replace with your own pictures and copy.

GoDaddy Websites + Marketing pairs an easyto-use website builder with a suite of marketing tools such as email marketing and SEO (search engine optimization), designed to help small businesses with limited marketing experience reach new customers and fuel growth. It helps business owners to effectively plan, build and grow for the future by providing a dashboard showing how you’re doing and action plans for what to do next.

Getting online is an important way for businesses to enhance growth and reach a larger consumer base. Taking advantage of website building platforms can be the easiest and most cost-effective way to create an online presence. Given Canadian consumers’ increasing embrace of technology, it’s fortunate our small business owners and entrepreneurs have easy access to the tools necessary to help them get online.

Sponsored by GoDaddy Canada CANADIANSME MAGAZINE I NOVEMBER 2019 I

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More customers.

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I CANADIANSME MAGAZINE I NOVEMBER 2019

C A N A D I A N S T A R T- U P, L O C A T E M O T I O N , T O C O M M E N C E

5G TESTING FOR ITS SENIOR HOMECARE SOLUTION LocateMotion was founded with the aim of keeping loved ones safe and facilitating aging in place. The start-up reaches another milestone as it gets selected by ENCQOR, a Government of Canada 5G Program, for implementation and testing of 5G use-cases for its unique IoT and AI SaaS solution for the senior homecare space.

he senior population in North America is growing at a very fast pace. As per the US Census Bureau, by 2030, every fifth American will be a senior citizen.

Similarly, StatsCanada estimates that every fifth Canadian will be a senior citizen even earlier, by 2024.

As the baby boomer population ages, there is an urgent need to reevaluate the current approach towards senior care, to help relieve the strain on healthcare facilities and respond to increasing demand-supply gaps. Especially because the number of personal support workers or caregivers is not increasing fast enough to keep up with the senior population growth.

This is where technology comes in. It can play a vital role in mitigating caregiver shortages and providing a 24/7 safety net for seniors. This is why LocateMotion has created an assisted ambient living (AAL) solution that facilitates aging in place.

The solution analyzes the information provided by wearables, smartphones, WIFI, and geodata, to provide a comprehensive talk-trackcare solution for seniors.

Its built-in algorithm tracks health and activity trends as well as patterns in movement to reduce chances of emergencies such as wandering and falls, while automating routine daily support tasks such as medication reminders. Determining the severity of each care incident, it facilitates automated or human ‘smart-responses’, improving operational efficiencies for homecare providers while providing peace of mind to seniors and their caregivers.

Photo Credit: LocateMotion

LocateMotion aims to make this process more seamless in the future with 5G by facilitating real-time monitoring. Ultimately a scalable, customizable solution will take to the unique needs of every Open APIs, device & network agnostic platform, dedicated app, and remote monitoring devices will enable senior homecare providers to further improve care while driving down costs.

Hence, with the support of ENCQOR partners including Ontario Centres of Excellence (OCE), MaRS Discovery District, Ericsson, and Ciena, the company is working on the next 5G-ready version of its solution.

In addition to ENCQOR, LocateMotion has already received support from other leading institutions including SmartStart Seed Fund program funded by Govt of Ontario via OCE, NSERC, IRAP (Industrial Research program) and AGE-WELL in collaboration with Ryerson University and the Govt of Canada to address this challenge.

LocateMotion is currently testing the solution and is in discussions for pilot programs in Canada and the US. The solution will be available for commercial use in Q4 2019.

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INTERVIEW

LAURENCE COOKE nanopay Corporation Founder and CEO

Laurence drives the vision to offer CBDC to central banks, and leads the overall strategy and direction of nanopay to deliver scalable payment and liquidity solutions to banks and businesses. Laurence is responsible for raising capital, managing investor relations, and taking the business to new heights.

Prior to founding nanopay, Laurence worked with WIND Canada and was Vice President of Wireless at Shaw Communications Inc. He was also Chief Operating Officer of Bell Mobility and Bell Distribution Inc (BDI), where he was responsible for all of Bell Mobility’s operations and led a team of 9,000 employees. At BDI, Laurence was responsible for all retail for Bell Canada. Prior to joining Bell, Laurence was a senior executive in Accenture’s London Strategy Practice. Laurence co-founded two wireless data businesses in Europe, Melodeo, Inc. and Xtempus.

Active in the payments community, Laurence is a member of the Payments Canada Stakeholder Advisory Committee, FinPay and the US Federal Reserve Faster Payments Task Force. Laurence holds a Master in Business Administration degree from the London Business School, and a bachelor’s degree in Computer Science and Economics from the University of Witwatersrand in Johannesburg.

n a no pay

REDEFINING THE PAYMENT INDUSTRY Photo Credit: nanopay

Heading in the right direction:

Photo Credit: www.edc.ca

How to build your

EXPORT STRATEGY

Sponsored by EDC

he process of building your own export strategy will be made much simpler if you rely on the expert advice available from these four key export partners: •

Business Development Bank of Canada (BDC)

•

Trade Commissioner Service (TCS)

•

World Trade Centre—Trade Accelerator Program (TAP)

•

Export Development Canada (EDC)

Representatives from each organization took part in our recent webinar, Action plan: Mapping out your export strategy. The program also included helpful insights from exporting panellist, Kevin Klaassen, co-founder and chief executive officer of SK2 Custom Homes based in Manitoba. Klaassen has used each of these export partners to develop and execute his own successful export strategy. By following these basic steps in building your plan—and forging partnerships with these export facilitators— you’ll be ready to take on international markets, grow your business and your bottom line.

S T E P 1:

DETERMINE IF YOU’RE READY TO EXPORT Before you contemplate doing business in a new international market, make sure your company is firing on all cylinders back home. Are you ready organizationally, operationally and financially? Use these resources to find out.

•

12

Export quiz: Are you ready? This quick, 15-question assessment tool offers a basic primer to get you in the headspace of where your company needs to be before it’s ready to export.

•

Step-by-step guide to exporting: Available in HTML or PDF format, this guide covers each step in the export journey—from assessing your export potential to understanding the legal side of international trade.

•

International readiness assessment: Offered through BDC’s advisory services, this three-hour interview of your management team will analyze your organizational and operational strengths and weaknesses, as well as your financial standing to evaluate your company’s capacity to support international growth.

Other BDC resources and articles to explore:

•

Financial ratio, calculator and benchmarking tools

•

7 key questions your export plan should answer

•

3 essential steps for entering a foreign market

•

5 tips to successfully export your services

•

Trade Data Online: This searchable tool enables you to enter your harmonized system (HS) code to generate customized reports on which countries are buying your type of products.

•

Trade Commissioner Service—Market Reports: Access more than 200 reports with specific information about your sector or product. Once you’ve done your own research and narrowed down your top two markets, contact a trade commissioner for a free market potential assessment.

S T E P 2:

ANALYZE WHICH INTERNATIONAL MARKETS ARE BEST FOR YOU Once you’ve determined that you’re ready to export, you need to analyze which markets will yield the highest returns for your product or service. That includes having a thorough understanding of your competition and how to tweak your value proposition to stand out from the crowd. Conducting preliminary market research using reputable online sources is key.

To get you going, here are three free options.

I CANADIANSME MAGAZINE I NOVEMBER 2019

Photo Credit: www.edc.ca

EXCLUSIVE INTERVIEW

BMW: THE ULTIMATE

EXPERIENCE FELT IN YOUR HEART AND ON THE ROAD

Hans Blesse President at BMW Group Canada

You spent most of your career working at BMW. What is it about the organization that attracts you?

Ever since I was young, I’ve loved cars and always had a special place in my heart for BMWs; aside from that, however, I think what I admire most about this organization is the culture of success that continues to define BMW. We have great people working not only here in Canada, but around the globe who continue to foster a winning mentality. As well, our products are world class and BMW’s engineering continues to be among the best in the industry. These are things that make this company very easy to stand behind.

You actively went searching for the best dealer. What were you hoping to learn from them that you didn’t already know?

At the time, I was young and looking to enhance my skillset more than anything. With a background as a mechanical technician, experience within the automotive industry and a love of the BMW brand, it was a perfect fit. I wanted to learn from the best. The other thing that drew me to Vancouver was the opportunity to work in a new market. Uprooting and moving to a new place always presents a challenge, but it is great for personal growth.

Photo Credit: BMW Canada

In your opinion, what does BMW stand for? What do people think of when the BMW brand is mentioned?

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BMW has dedicated itself to producing the “Ultimate Driving Experience,” and I believe the thrill of driving is one of the first things that comes to mind when someone sets eyes on the BMW roundel. Whenever I talk to fans, they always comment on things such as driving dynamics, handling or the excitement they feel when they put their vehicle in sport mode. Ultimately for me, the genuine feeling of joy I get when I’m behind the wheel of a BMW is second to none – no matter if it’s combustion powered, or electrified.

EXCLUSIVE INTERVIEW

Photo Credit: BMW Canada

BMW Group celebrated its 100th anniversary in 2016. What do you believe are the factors that makes BMW stay above competition?

many get the chance to see the entire footprint, and I would say, in its entirety, that really prepared me for where I am today.

When you look at successful companies throughout history, one thing that stands out is they all have some kind of goal, or a clear vision of how they are going to be the best. Not only has BMW remained focused on this over the years, but we continue to do it to this very day. Our unwavering commitment to innovation technology development have allowed us to become one of the leading premium mobility and technology companies in the world. This has allowed us to not only predict the future, but create it. With Strategy NUMBER ONE>NEXT, our corporate roadmap for the next 100 years that is set to future proof the company, BMW will redefine premium mobility in ways that will actively shape and transform the industry.

In your expert opinion, what is the best vehicle that BMW has launched and why?

What are some of the strategies you use to help you in your role as President and CEO of BMW Group Canada?

One thing that I focus on, more than anything, is to have a customer centric mindset. Do we have world class products? Without a doubt we do. From personal mobility to fleet services, we truly have great products to suit any need, but that is only one piece of the puzzle. You have to ask yourself: “what is the experience like shopping for and owning a BMW?” The “Ultimate Driving Experience” walks hand-in-hand with the “Ultimate Ownership Experience.” Put the customer experience first and the rest will fall into place.

How do you believe your past experience has prepared you for your current role?

I have been fortunate enough to work for and with some amazing people, and there is no denying this has helped prepare me for where I am today.

However, I was also driven to work in as many facets of the business as possible, from Motorrad to aftersales. As well, I wanted to ensure I could experience BMW in its entire global scope – from head office in Munich to a service bay in Vancouver – to truly understand how we operate. Not

Our product portfolio has been and will continue to be truly remarkable, especially – as it is currently – during our largest product offensive in company history. Because of this, it is quite difficult for me to pick just one vehicle over our 100 plus year history. I do, however, have some favourites. The 3 Series Cabriolet (E46) still gives me goosebumps to this day. I remember once in 2006 as a Regional Technical Manager driving up the Trans-Canada Highway in this amazing automobile with the biggest smile on my face, thinking how great my job was. However, one of our most underappreciated cars in recent history, especially here in North America, would have to be the all-electric BMW i3. It was a vehicle that essentially started the premium EV segment and is still a technological tour-de-force. An all carbon fibre EV with sustainably sourced material for under $50,000 is an engineering triumph any car-maker would be proud of. I’m also very fond of BMW Motorrad, but don’t get me started!

Finally, what does the future of BMW look like? Where do you see the organisation heading 10 years from now?

With a focus on leadership in vehicle autonomy, connectivity, electrification and shared services, I foresee BMW transforming from a purely automotive company to an integrated premium technology and mobility solutions provider. In this manner, we would have the ability to completely support our customers in the digital ways and means they would expect from major global tech companies. Currently, BMW finds itself in its largest product offensive in company history, and with the continued growth of our product portfolio along with leadership in digital products and services, we are in a great position to further our position as one of the leading premium global automotive companies.

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A Letter from the Minister of Small Business and Export Promotion

As Canada’s Minister of Small Business and Export Promotion, it is my job to help Canadian businesses start up, scale up, and access new markets.

This is why I am so pleased to extend my greetings to everyone attending the CanadianSME National Business Awards.

Small and medium sized businesses account for 99 per cent of all businesses in Canada, and support millions of jobs.

Businesses like yours sustain local economies around which great Canadian communities are built; the importance of small and medium sized businesses cannot be overstated.

I want you to know that our government is here to support your success. That is why we have lowered the small business tax rate to 9 percent, making it one of the lowest in the world. It is why we have pushed credit card companies to lower the fees they charge businesses, and why we are cutting red tape. To date, we have removed over 400 administrative burdens to make it easier for you to do business.

At the same time, we are opening the door to 1.5 billion new cutomers around the world through our 14 trade agreements. We are pushing to grow the number of women-owned and led businesses through the Women’s Entrepreneurship Strategy. This $2 billion dollar investment will help us double the number of women-led and owned businesses by 2025.

We have also launched the Canada Business App, which makes it easier for small business owners to navigate government services, receive tailored recommendations and personalized notifications on funding applications.

We are making these investments because we know how important small and medium sized business are to our country and to our economy. To the team at CanadianSME: congratulations on your impressive expansion, and I look forward to hearing about your continued success.

Sincerely,

The Honourable Mary Ng, P.C., M.P.

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TOP 10

MANUFACTURING TRENDS IN CANADA Photo Credit: Depositphotos.com

1

he manufacturing industry has significantly evolved in Canada over the last few years. One of the main reasons behind the constant evolution of Canada’s manufacturing industry is without a doubt the new development in technology. We live in an era where technology is affecting many industries. Therefore, it’s no wonder that the manufacturing industry has been impacted by the new discoveries in the tech world. With that in mind, we can safely say that the top 10 manufacturing trends that we are seeing at the moment have largely to do with technology.

3 2 4

Artificial Intelligence (AI)

On of the most popular manufacturing trends is without a doubt AI. We hear of Artificial Intelligence everywhere. So, it comes to no surprise that it’s been incorporated in manufacturing. Some of the trends we’re already seeing in manufacturing and will definitely be seeing more of in the near future are facilities that have grown into connected networks of people and machines with supply chain assets, design teams and production and quality control. All of which has been combined into a highly intelligent engine that monitors everything closely to be able to provide valuable data and insights. There are concerns that eventually AI will replace human workers and therefore, reducing job opportunities, one of the main benefits of Artificial Intelligence is the increase of efficiency and productivity.

Data Utilization

Data management is one of the main ways for companies to be able to see how productive they are? And what are some areas of improvement? However, it’s no longer enough to simply be able to manage the mounds of data generated by manufacturing processes.

Companies need to think outside the box and come up with innovative solutions. Therefore, embracing technology and investing in business intelligence hardware that can provide a better assessment of their data is one of the big trends in the manufacturing industry at the moment. With organizational data being a complex issue, more and more companies are taking the time to invest in tools and equipment

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that can not only increase their productivity, but also their profits. As the world of technology is consistently evolving and new innovations are being discovered regularly, it won’t be long until there is an increase in opportunities in data utilization.

Intelligent Manufacturing

Intelligent manufacturing helps business owners better optimize organizational systems, improve product quality, increase efficient distribution of resources and positively impact customer service. With the new developments in digital technology, intelligent manufacturing is on the rise. Integrated systems have made it possible to allow communication and collaboration between equipment and people.

Therefore, manufacturing companies can now better create customized products efficiently for mass production. It not only increases customer engagement, but it also positively impacts the relationships with equipment end users.

The Internet of Things (IoT)

One of the biggest and transformative trends in the manufacturing industry has to be the combination between networked sensors and intelligent devices with connected equipment. It changed traditional supply chains into interconnected and dynamic systems. Additionally, it’s also changed the way products are made, increased organizational efficiency, reduced costs and improved safety within companies. The Internet of Things has already impacted greatly the manufacturing

EYE ON TECH IS YOUR FACTORY

FUTURE-PROOF?

By Lissa Ricci, Vice President of small business solutions for Cisco Canada

I admit, in an era of unprecedented technology advances, writing an article about a future-proof factory floor (… or any business environment) may seem disingenuous. After all, what is bleeding-edge today will be table stakes tomorrow.

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But small businesses – and the growing manufacturers among them – should take the idea of future-proofing seriously. Because with the right mix of strategy, culture, and technology…it is possible.

From a technology perspective – future-proofing begins with the right network. For manufacturers, that translates to an industrial IT network that unifies, protects, and streamlines data.

The advantages an industrial IT network creates on the factory floor — improved product quality, machine utilization and a reduction in unplanned downtime, to start — breeds continued success for early adopters. And the bonus for small businesses? This advantage multiplies the longer it takes your competitors to adopt the same solutions.

IS YOUR BUSINESS

BUILT TO SELL?

By Joanna Bender

E

very business should be “built to sell,” whether selling your business is part of your long-term strategy or not.

This is the golden rule according to author Rick Moore, found in his new book Scale-Up To Sell.

The book focuses on potential blind spots that could prevent Canadian business owners from maximizing the true value of their businesses. For example, when owners get caught up in running the business, they often forget to spend time on big-picture tasks like increasing overall value. This ends up making the business worth far less than most owners believe.

Moore also brings to light some interesting statistics and potential repercussions for owners, such as the largest demographic of small- and medium-sized business owners in Canada is made up of baby boomers, and within the next decade, 75% of these businesses will be for sale.

In addition, 75% of business owners are unhappy with the sale of their business 12 months after they sell it—if they are actually able to achieve a sale in the first place. The percentage of businesses that do sell are relatively small compared to those that just shut their doors, sell off their assets and walk away.

Moore makes the point that, since the average business owner has 85% of their wealth tied up in their business, this inability to receive full value for their largest asset is simply unacceptable. He proposes the maximization of business value should be your end goal from the beginning, as it impacts the day-to-

Free Book For Business Owners Who Want To Scale-Up To Maximize & Grow The Value Of Their Business!

In this new book, you’ll discover...

day functioning of your business in a powerful way, such as giving you a leg up on your competition.

Here are some more notable lessons from Scale-Up To Sell, without giving away the details: •

The single thing you’re doing as a business owner that holds you back from maximizing your business’ value

•

Why your business is short of cash even if you have sales coming in

•

What it really takes to scale a business (Hint: it’s not always just about the revenue)

The single thing you’re doing as a business owner that holds you back from maximizing the true value of your business What it really takes to scale a business (hint: it’s not always about the balance sheet!)

What gets in the way of your ability to determine the true value of your business How to keep employees invested so that they feel valued and willing to invest their energy in your company The critical difference between how you view your business and how a potential buyer views your business

What gets in the way of your ability to determine the true value of your business •

How to set up systems that empower you as the owner to effectively work on your businesses and delegate in a way that makes employees feel valued and energized

For a limited time, you can pick up a free copy of Scale-Up To Sell from Rick Moore, Canada’s Authority on Strategic Growth & Value Creation for Business Owners, at https://scaleuptosellbook.ca/ Moore works exclusively with Canadian business owners who want to sell their business for maximum value. He brings over three decades of experience in applying the fundamentals of financing, advising, buying and selling businesses to help owners create a valuable business that can scale, sell and be the best it can be.

Order Your Free Book Here: www.ScaleUpToSellBook.ca or call (403) 612-0232

CANADIANSME MAGAZINE I NOVEMBER 2019 I

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Business Woman of the month

NESH PILLAY

FOUNDER OF PRESS PILLAY Nesh Pillay is the founder of Press Pillay, a digital communications agency on a social mission. She is also currently the Newcomers Entrepreneur-in-Residence at the Toronto Public Library, where she works with new immigrants to bring their startup ideas to life.

She is a former journalist who covered international advertising and marketing as a founding reporter of The Drum’s New York team. She later joined Toronto-based EQ Works as their VP of Marketing, where she honed the art of “marketing for the marketer.”

Nesh has previously appeared in Canadian Association for Marketing Professionals and Direct Marketing Magazine. Her secret weapon is having learned the in's and out's of marketing, PR and branding from "the other side."

She calls herself the "Robin Hood" of PR and believes that empathy can fix the world.

Photo Credit: Press Pillay

WHAT WAS THE INSPIRATION BEHIND THE FOUNDING OF PRESS PILLAY?

WHAT ARE THE THREE MOST IMPORTANT FACTORS IN MARKETING THAT CAN CONTRIBUTE TOWARDS THE SUCCESS OF A BUSINESS?

When I worked as a reporter, I wrote about the marketing industry and realized very quickly that it’s a broken one. Budgets are high, outputs are low and everything is fragmented. Not everyone is a giant corporation with million dollar budgets so there’s a large segment of the business world that is left floating aimlessly when it comes to marketing and communications.

Know yourself. A lot of businesses rush to market without defining their brands and objectives. Behind every campaign or even social media post, there should be strategic thought. Ask yourself: Why are we doing this?

What are our expected outcomes? More often than not, small businesses employ splintered and confusing marketing efforts. One brand voice on social with another on the website, and a third in subway ads. Audiences are smart. They recognize this, and don’t respond to it.

Know your audience. Some businesses do a great job of knowing themselves but struggle to know their audiences. It’s crucial that you always keep a tab on the pulse of ever-shifting audience demographics.

Knowing your audience’s age and location isn’t enough. You want to know

I decided that the only way to change this is from the inside, so I opened my own shop.

After founding the agency, I very quickly learned that entrepreneurship (stressful as it may be) is my life’s calling.

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BUSINESS WOMAN OF THE MONTH

what makes them happy. What’s important to them. What isn’t. Armed with this knowledge, you’ll be able to create marketing campaigns that truly resonate with your customer. You’ll be surprised by how far a quippy or topical campaign can take you.

Be firm, but fluid. Over the last decade or so, technology has moved at an alarminglyquick pace. This of course, has translated into marketing efforts. It seems like there’s a new “cool” marketing tool or platform every 6-months. This is exhausting and overwhelming. Businesses generally respond to this in two ways. Some have marketing A.D.D., flitting from platform to platform trying to stay ahead of the curve. But I don’t necessarily NEED my plumber making Tik Toks (look it up, it’s cool now). Others dig in their heels and refuse to adapt at all - these are the companies that flood your mailbox with flyers, though don’t have proper websites. The answer is to be somewhere in the middle: track the ways that people consume content and if a particular platform seems to have lasting power, adopt it.

Stubbornness will get you nowhere.

YOU GIVE 10% OF ALL YOUR AGENCY’S INCOME AND DONATE IT TOWARDS HELPING THE “WORLD BECOME A BETTER PLACE”. CAN YOU TELL US ABOUT SOME OF THE FOUNDATIONS AND CHARITIES TO WHICH YOU DONATE A PORTION OF YOUR COMPANY’S PROFIT TOWARDS? The amount we’re able to give-back directly correlates to how profitable we’ve been in a particular year. Since founding the agency, we’ve focused on diversifying our efforts by working with and supporting smaller nonprofits and charities like one that provides feminine hygiene products to low-income women in rural South Africa or another that gives shelter to victims of domestic abuse. We try to ensure that the values of these foundations mirror ours: empathy, education, and equality.

As the agency grows, we hope these funds will be used toward an initiative of our very own: The Caleb Project.

HAVING STUDIED AND WORKED IN COMMUNICATIONS, ONE CAN SAY YOU ARE AN EXPERT TO ALL THINGS COMMUNICATIONS RELATED. HOW IMPORTANT DO YOU BELIEVE COMMUNICATION IS WHEN IT COMES TO THE SUCCESS OF A BUSINESS? Last year, the agency put on the first ever “Communications Week” event held in Canada.

It was a huge success and we learned that there’s a huge gap when it comes to the appreciation and growth of canadian business communications.

I think this is because there’s a lack of understanding of the importance of communication in any industry.

Communication is the foundation upon which every industry is built. Know any incredible lawyers who are poor communicators?

Doctors? Servers? My point exactly.

WHAT MARKETING ADVICE CAN YOU GIVE TO SMALL BUSINESS OWNERS WHO ARE JUST STARTING UP? This translates beyond marketing, but I urge all small business owners to surround themselves with people who know more than they do. You should never be the smartest person on your team.

Also, strategically frame your idea of success.

Many, many businesses (including my agency at one point) make the mistake of scaling too much too quickly. However, success isn’t measured by the number of people on payroll, or how many neon signs you have in your office space.

With marketing specifically, I’ve seen businesses with incredible products forget about marketing support and strategy in their founding months.

Marketing is more than choosing brand colors and a logo, it’s about ensuring that your product has an audience and that you have the tools to effectively reach that population.

YOU’RE VERY PASSIONATE ABOUT DIVERSITY IN THE WORKPLACE. WHAT STRATEGIES DO YOU USE TO INCORPORATE THAT IN YOUR OWN ORGANIZATION? I focus on diversity of thought and experience when I hire. This automatically translates to visible diversity.

Resumes don’t always share the breadth of a person’s knowledge - I also take things like life experience into account. Has this person traveled? What are their values? What personal challenges have they overcome?

Just like I do with client work, I take an unusual approach putting teams together but I find it works well.

WHAT DO YOU BELIEVE IS THE BIGGEST CHALLENGE THAT COMPANIES FACE WHEN IT COMES TO HAVING A DIVERSE AND INCLUSIVE WORKPLACE?

I think a lot of companies struggle with the defining diversity and understanding the value in it. Diversity doesn’t just mean filling an organization with a bunch of people who look differently (though the chips often fall that way).

Rather, true diversity brings together people with different experiences, backgrounds, and schools-of-thought to ensure that the workplace is as relevant and effective as possible.

YOU’RE A STRONG SUPPORTER OF WOMEN AND WOMEN OF COLOUR IN LEADERSHIP ROLES WITHIN THE TECH INDUSTRY. WHAT PERSPECTIVE DO YOU BELIEVE THEY CAN BRING TO THE TECH INDUSTRY? I’m hesitant to say solely “women bring X” while “men bring Y.” I just don’t think it works that way. However, to my point above, I think that having the most diverse teams possible is what leads to the best outcomes possible. And yes, in this case in particular, I mean women.

It’s a common misconception that women aren’t very technical (or that men aren’t very empathetic), but by having an inclusive team, you’re giving a voice and power to all experiences. Many brands that do the best today are the ones giving voices to those who simply weren’t heard before. They’re catering to experiences and solving problems that were previously undervalued and ignored.

ON A FINAL NOTE, WHAT’S BEEN THE BIGGEST ACCOMPLISHMENT OF YOUR PROFESSIONAL CAREER? WHAT ARE YOU MOST PROUD OF? I have two answers to this. One more specific, and another more general.

Specifically, the agency put on an event last year under the Communications Week umbrella.

I had a lot of great help on my team and a lot of wonderful partners. The event was a huge success and we sold out. I also learned of a great gap in the market that needed tending: Canadian Communications. We have since rebranded and will be hosting the event under the name Noted North early next year.

More generally, the highs of running a business are incredible. There’s nothing more exhilarating. However, the lows, can be quite challenging as well. This last year, I took some time off from the agency to focus on my personal life. Being Type A, this stressed me out immensely but I’m incredibly proud to say I’ve learned that sometimes you need to turn it off.

Some things are more important. And that’s OK. This realization has primed me to be more successful than ever before.

CANADIANSME MAGAZINE I NOVEMBER 2019 I

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THOUGHT LEADERSHIP

COMPETING AGAINST

THE WHALES IN YOUR INDUSTRY

Sponsored by Leverage Consulting

Ok, under no circumstance should you do this.

Please refrain and try your best not to visualize this. The last thing you should do is yield to temptation and picture a gigantic grey whale swimming in the ocean! Do not visualize the majestic beast as it graciously makes its way through the cold waters of the Atlantic… you pictured it, didn’t you?

SHIRAZ SIDDIQUE Founder - Leverage Consulting

While simultaneously delivering record-setting sales results in various Sales Leadership roles, Shiraz Siddique has been actively training, consulting and delivering keynotes for more than 20 years in both the Academic and Corporate world. His passionate and innovative delivery style allows him to navigate past the reality that most people want to learn but do not enjoy the traditional process of learning. Through easy to apply techniques and strategies, he helps companies generate the types of results they have always felt they are capable of.

ABOUT LEVERAGE CONSULTING

The power of suggestion is almost as powerful as the perspectives we hold. In my early years competing against the BLUE and RED whales in the Canadian telco space, a prevailing thought seemed to always loom over my perspective, “What if customers succumb to a default position of comfort in brand name safety?”.

When VOIP and Hosted PBX burst on the scene, I was leading a sales team for a smaller upstart.

We felt like we suffered from a lack of Brand Awareness and, we did. We also faced the slow adoption rate of an emerging technology that was plagued with call quality concerns and reliability issues.

Beyond rolling out a budget-heavy marketing program, a mental pivot was required if we were to fight and compete – and compete we did! As soon as we adopted a clear and concise perspective and new mindset, we were able to sidestep barriers that we were putting up ourselves.

1

Frustrated after seeing poor ideas get adopted over far superior strategies, Leverage Consulting was founded on one question, “Why doesn’t the best idea always win?”

That forced a flipside question, “Why do my prospects consistently select us over the competition?”

We knew we could rollout our services more efficiently than anyone else in the game. We began to clear out the clutter of our messaging that connected us the strengths of our competitors. We decided to stop competing on their home court. We changed the conversation to be about what we did best. Turns out it resonated with our prospects as well.

Whether delivering group presentations or connecting 1:1, we work with Leaders, Salespeople and Entrepreneurs to grow their persuasion and influence. We guide our clients through the process of Calculating, Calibrating and Clearly Communicating their product, service or idea.

Our sessions are deliberately designed to challenge participants’ thinking. Our priority is to ensure the learning experience is connected, relevant and enjoyable.

We go beyond building successful training programs – we believe in building successful people through skill, confidence and presence. Ensure your idea wins in your next team meeting or client presentation. www.findyourleverage.ca

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Clarity and Confidence in Our Competence.

2

Belief.

We sincerely believed we were nimble and more responsive to a customer’s customization requirements so we led with our strengths. We began to “be better at what we were better at”. We also believed we had a world-class fulfillment team, so we focused on our post-signature process.

Most times, this propelled the buying process past deliberation to a critical thought that often doesn’t get discussed, “So we bought the product/service, now what?”. This again, resonated with our prospects. We took the focus off vendor-

selection and onto solution-implementation.

We believed and our customers followed suit.

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4

Define Who We Serve.

Beyond simply categorizing a target market, we dug deeper into who we were built to serve, then purposed to serve them better than our competition. Being ‘smaller’ meant we were quicker and more agile. Deals that required a short turnaround rocketed to the top of our funnels and received more attention. Deals that required customization to the solution received top priority from our Sales Engineers. Our SEs were happy to be engaged in and working on deals that felt winnable now.

Show and Tell.

There is a certain mistrust that comes with the selling/buying process. I rarely continue with salesperson who says, “Trust me, I know what I’m talking about!”. We actually did not want our prospects to take our word for it. We wanted them to experience if for themselves. The greatest testimonial and referral one can receive is the own! So we invested in a Demo Room and offered free trials to the extent that we could. We were creating internal champions in every prospect organization we wanted to work with. Was there a cost? Absolutely but less than the cost of continuing to do business as usual. By eroding apprehension, we were in fact building up our Brand. We were responsive and world-class in our implementation.

What powerful image of yourself and your company will you visualize? We intentionally focused on who we were and not who the competition was. We began to see ourselves as the ‘whales’ of implementation. It’s true, what you focus on grows. We knew we had arrived when we landed our own whale – a 700 seat Call Centre based in Toronto with offices in BC and Quebec. Why did they choose us?

We capitalized on who we were and broadcast that message. Turns out our strengths were the weaknesses of the whales that we thought we wanted to be. Turns out what customers wanted was what we were the whole time. We just couldn’t see it.

We finally saw it, seized it and our customers believed it. You don’t need to be a whale – just be the best version of you.

RETAIL RESURRECTION:

RETAIL

HOW THE PHYSICAL SHOPPING EXPERIENCE IS MORE IMPORTANT THAN EVER

BY KEN THRASHER, SENIOR DIRECTOR, MARKETING & ECOMMERCE, THE BRICK

D

uring the dawn of online retailing when eBay came onto the scene in the late ’90s—before Amazon was a household name—people were already predicting the death of brick-and-mortar stores.

Despite what some have viewed as a retail apocalypse, The Brick believes physical stores are more important than ever. As online-born brands such as Warby Parker, Indochino, Clearly and online giants like Amazon invest in their own real estate, a clear picture has emerged that brick-andmortar is the strongest piece of marketing available to retailers. And we’ve positioned ourselves ahead of the curve here in Canada.

Evolving consumer needs In the past, consumers could only find information about a store’s goods in a catalogue or by visiting a store.

However, stores are no longer an initial discovery point, particularly when it comes to information online. And we’re seeing this manifest in consumer trends. According to Forrester, Canadian online retail will generate revenue of $39.9 billion in 2019—9.5 per cent of all retail transactions.

Ecommerce has also impacted brick-and-mortar store traffic, contributing to year-over-year decreases, but more informed, higher-value visitors. Having already done their research online, shoppers go in-store to try the product— feel a sofa’s fabric and test out a mattress.

Canadians can’t let go of the sensory experience, still completing most of their purchases in brickand-mortar stores.

Reimagining the role of brick-and-mortar The Brick can’t discount the critical advantage our 200 stores across Canada provides us. But to achieve continued success, we need to evaluate their purpose.

Typically, brick-and-mortar stores have been assessed by sales per square foot. But as the shopping experience moves increasingly omnichannel, those traditional success measures are supplemented with metrics allowing a more holistic view.

Despite the advantages that online retail offers, it can never close that sensory gap—a store visit remains the single most valuable customer touchpoint. With increasing competition in retail, it’s critical for stores to take advantage of this by providing a richer in-store experience.

A better in-store experience will improve your online sales, and vice versa. This shift has many

starting to consider expenses associated with operating physical store locations to be a portion of their customer acquisition cost.

Customizing the in-store experience Stores need to provide immersive experiences for consumers. So we have included many new features in our new location in West Edmonton Mall (WEM).

We’ve created more engaging displays: furniture and accessories stylized in themed sections, creating inspirational rooms to help customers imagine how items could be incorporated into their homes.

Our store also represents our commitment to the communities where we operate. Our new WEM location includes the first-of-its-kind Charity Corner supporting the Stollery Children’s Hospital via the Children’s Miracle Network.

Capitalizing on digital advancements We’ve also introduced our Designed2B iOS and Android app allowing customers to build and preview tailored configurations from The Brick’s Designed2B custom furniture line.

We’ve also equipped our sales team with tablets to reduce friction points as customers check out.

Staying ahead of the curve Undoubtedly, traditional retailing has undergone seismic shifts with the growing prevalence of ecommerce retail. And we’ve seen a number of major brick-and-mortar style retailers, such as Sears, close. Yet, The Brick is expanding our physical presence by moving into the Sears formerly occupied in WEM—now our largest store in Edmonton at 55,000 square feet.

In our 35-year partnership with WEM, we’ve continued to break ground in ways that have enabled us to stand the test of time.

CANADIANSME MAGAZINE I NOVEMBER 2019 I

33

INTERVIEW

AWSOME WAYS AWS

DRIVES SMB

INNOVATION

ERIC GALES Country Manager - AWS Canada Inc.

Photo Credit: AWS Canada Inc.

CAN YOU SHARE SOME OF THE BRIEF ANNOUNCEMENTS MADE AT AWS SUMMIT TORONTO?

content can now do that. It is also a strong signal and confirmation of that our solution is secure for government workloads.

AWS Summit Toronto is an annual event and this is the second year we've had it in Toronto. It has grown considerably since 2018 and we had over 4,500 people attend this year’s summit. This year’s summit featured over 70 sessions ranging from business to deep technical content. The aim of the event is to offer attendees an educational, training and enablement experience. It is not a sales and marketing conference; it is intended to help people learn more about AWS and our partner ecosystem by letting them hear from our customers. We find that the most powerful way of translating the technology is to hear from customers, and that is why we had a number of customers on stage this morning.

Post my speech, our keynote speaker, Joshua Burgin, technical advisor to AWS Senior Vice President, Charlie Bell, took over. Joshua primarily talked about the growing capabilities of AWS. During the course of his speech, he introduced three great Canadian customers of ours – NuData Security, which is now a MasterCard business; Hootsuite, a leading social media management platform and long-time AWS customer; and Sun Life Financial. All three of them have completely different use cases and that's always exciting for customers to hear about firsthand. Also, in all the three customer cases, our partners have contributed to their success.

We made three major announcements at the AWS Summit in Toronto: The first is, that we’ll continue to extend our edge locations globally and have opened another edge location in Toronto. It is part of a network of 187 edge locations around the world.

Second, we are adding a third Availability Zone, which is being built right now, in Canada. We'll launch it in early 2020 and it is something that a lot of our customers have been asking us for.

So, we'll have a third Availability Zone in the AWS Canada (Central) Region in the not too distant future.

Third, we announced we were recently awarded a contract by the Canadian Federal Government to host its Protected B workloads. This is a big milestone because it means that the government can accelerate their migration to using cloud services, and customers who sell to the government and must deal with protected 34

The remainder of the day saw our customers participating in multiple segments and learning levels to learn how AWS can help them innovate with speed and deliver services with scale, flexibility, and reliability.

HOW IS AMAZON WEB SERVICES HELPING CANADIAN BUSINESSES EMBRACE CLOUD TECHNOLOGY? We're trying to help Canadian businesses understand how cloud capabilities can help them. Many businesses have been running their IT workloads on-premise. But now, it’s possible to run workloads in the cloud to avoid having to expend capital, or own/manage infrastructure.

By taking advantage of the cloud, customers take advantage of the features that make the cloud very attractive. It’s a pay-as-you-go model – you only pay for the resources that you need. It's an elastic model which means you can scale up or down. Also, it offers a high degree of agility.

Previously, companies that wanted to expand

I CANADIANSME MAGAZINE I NOVEMBER 2019

globally had to provision or buy infrastructure in different countries. However, now they can simply scale their applications to different countries in ways that they couldn't have done before. So that's an exciting dimension for companies that are looking to expand.

We have a regional team, which is distributed across Canada, that engages directly with the customers. We also have a huge team that works with partners because often, SME customers in certain verticals have unique challenges and therefore, our partners can help translate our capabilities discreetly into something that's valuable for a retailer or manufacturer or a dentist.

We're definitely seeing a huge adoption of cloud technology and it's been accelerating as we now have tens of thousands of customers in Canada using AWS. We have a huge portfolio of customers across the country, many of which are SMEs. Whether it is a Startup or a traditional business, SMEs are taking advantage of our cloud capabilities to enable themselves to think differently about how they use IT, to add more leverage to lower their costs, and to help them move more quickly.

CANADIAN BUSINESSES ARE SLOWER TO ADOPT NEW TECHNOLOGY IN COMPARISON TO EUROPEAN AND AMERICAN COMPANIES, WHAT IS AWS DOING TO EDUCATE AND ENCOURAGE THEM TO EMBRACE TECHNOLOGY? I am not originally from Canada. I moved here 13 years ago and I'm now a very proud Canadian. One of the things that people would tell me when I came here was that, "Canada is generally a bit more conservative." That's not necessarily a wrong mindset. One of the things I've observed, having been here for 13 years, is that although

INTERVIEW

"INNOVATION IS KEY, AND WITH AWS, WE’RE HELPING TO DEMOCRATIZE ACCESS TO A TECHNOLOGY THAT ENABLES INNOVATION. THE CAPABILITIES THAT RUN ON AWS HAVE BEEN BUILT BASED ON FEEDBACK FROM MANY, MANY CUSTOMERS, ACROSS EVERY INDUSTRY. THEY'RE USED BY THE LARGEST ENTERPRISES TO THE MOST INNOVATIVE STARTUPS; IT'S AN ALL-IN-ONE PLATFORM AVAILABLE TO EVERYBODY. "

Canadian customers may take a little longer when it comes to adopting newer technologies, the process of adoption actually accelerates once it's been legitimized. I think we're seeing that period now. As recently as 18 months ago, I would get questions from customers like "Why should I move to the cloud?" Now, that's very rare. The questions they now ask are, "Where should I start?” or “What should I start with?” or “How do I get help?" So, I think there's a really fascinating opportunity now for Canadian customers to accelerate.

At AWS, one of the ways we try to encourage Canadian businesses to adopt newer technologies is to talk about what our customers are doing.

That's why it's so important to have companies like Hootsuite, which used to be a startup, or NuData, that was an SME when it was acquired, and enterprises like Sun Life talk about what they're doing with AWS technology. As much as possible, we try to share experiences to help potential customers think about how they can move more quickly by hearing from their peers.

That's a big part of what the AWS Summit is about. It's about helping customers to see just what the art of the possible is, and then helping them with either education enablement, or where to go and get help to activate. It’s also about promoting our partner ecosystem, who are equipped to help our customers as well.

WHERE DO YOU SEE THE FUTURE OF CLOUD TECHNOLOGY? We believe that in the fullness of time, very few companies will choose to run their own infrastructure because it just doesn't make any sense. It's not that it didn't make sense in the past, as at the time it was the only way of doing it. In the past, if you had a dependency on using infrastructure, you had to own and operate it yourself or get someone else to do it. But now, in this new paradigm, there's really no requirement to do that for all the reasons that were scary before. Businesses can now use this elastic compute on a pay-as-you-go basis.

I think it’s important to note too that the portfolio

of services in the AWS cloud continues to grow.

Our model is all about listening to feedback from customers and then continuing to invest in the platform. And so, in the four years that I've been at the company, the categories and services that run on the platform have grown from around 50 to over 165 services now, and you'll see more come as we go through this year. This rapid rate of evolution of the cloud is a function of the adoption of the customers and the feedback that they provide to us. Ninety to 95 per cent of our development is a result of feedback from customers, either about adding new services or extending the capabilities of our services. The other say five per cent of development are the things our engineers have anticipated coming around the corner.

CAN YOU TELL US ABOUT SOME OF THE RESOURCES AND SERVICES THAT AWS PROVIDES TO HELP SME OWNERS SUCCEED AND GROW THEIR BUSINESS? We have a lot of educational information, resources and courses available, much of which is categorized by vertical, for example. There are lots of case studies too, as we think it’s important to be able to see what’s possible with AWS technology. bWe also run a whole series of free events across the country called AWSome Days, which are an opportunity for people to come and get some exposure to the possibilities with AWS cloud services. Companies can explore the platform itself, and learn how they could apply it to their business. Increasingly, we're also running more verticalized events, so, if you're in a particular sector - whether it’s oil and gas or financial service – for example, or you’re somebody who perhaps would like to sell to a particular market, you’re be able to see what others are doing and think about how you can leverage the AWS cloud.

And then we have, events like today’s the AWS Summit Toronto, with a range of trainings and enablement capabilities from just understanding the business of the cloud and why it should be interesting and what it means, all the way through to specific capabilities which are relevant to

particular markets or sets of technical training.

What we try and do is to provide a fabric where we can take customers on a journey of learning about why the cloud should be important to them and how it applies to their business, all the way to getting training that supports enablement. .

DO YOU BELIEVE THAT TECHNOLOGY AND INNOVATION GO HAND IN HAND? Yes. If I think about my work with every kind of size and scale of business across Canada, innovation ultimately is the lifeblood of every company. If you look at the history of companies that were once great brands and have disappeared, when you trace what happened, you'd often find that it was either because of a lack of innovation or because they rested on their laurels.

Innovation is key, and with AWS, we’re helping to democratize access to a technology that enables innovation. The capabilities that run on AWS have been built based on feedback from many, many customers, across every industry. They're used by the largest enterprises to the most innovative startups; It's an all-in-one platform available to everybody. We provide this huge portfolio of building blocks where people who have great ideas can build things and try things and experiment in ways that they couldn't in the past, just because they'd be limited by how much they could expand. Now, they can try doing something by leveraging this incredible set of capabilities, and if it works, they can scale it up very easily, and if it doesn't, they can shut it down. The technology itself is a great enabler to help people to innovate and to try new things. We think that being able to do lots of experiments at a low cost really is the fuel for that innovative mindset. I'm fortunate to see a lot of that across the country as companies can try things and experiment in ways that perhaps they couldn't in the past.

CANADIANSME MAGAZINE I NOVEMBER 2019 I

35

THE MYTHS AND REALITIES

ABOUT MILLENNIAL SMALL BUSINESS OWNERS

C

urrently, millennials make up the fastestgrowing segment of small business owners (SBOs) in Canada, which is expected to be the largest SBO group as baby boomers retire.

Millennials’ spending power is huge – anticipated to reach close to US$150 billion annually – yet, the demographic still remains one of the least understood and misrepresented.

Recognizing the economic importance of this demographic, we wondered: what do we actually know about millennial SBOs?

MIKI VELEMIROVICH

The commonly held assumption is that millennials are neurotic, lazy, reckless risk takers and emotional decision makers, but do these stereotypes match the reality?

Understanding the misrepresented Miki Velemirovich is president of Cargo Canada (www.thecargoagency.com). Prior to joining Cargo, Miki, an experienced marketing expert, spent 20 years with big brands like IBM and Mercedes-Benz, in a variety of sales, marketing and finance roles. Miki provides expertise in building strategies that drive results and maximize return on investment, while recognizing and mitigating the pain points big brands feel when trying to market to small businesses.

Today, despite the numerous studies, there has been little evidence to predict the key drivers of millennial SBOs with near-perfect accuracy.

Building deeper relationships with millennial SBOs to understand these drivers requires enhanced trust and understanding, which is only possible by fully understanding the group’s values and mindsets. To bridge this gap, through our SmallTalk series and on our mission to help big brands market to small business owners, we decided to dig deeper into the world of millennial SBOs by combining neuroscience and emotion artificial intelligence (AI).

To test long-held perceptions of millennial SBOs, we worked with neuromarketing consultancy BRANDthro to create an AI-driven model that used social listening to identify the top issues and trigger language affecting millennial SBOs. The identified common language from social media was then connected to primary and secondary emotions to measure emotional intensity with 99.9 per cent accuracy.

The results were surprising and demystified the previously held myths about the generation.

The motivations of millennial SBOs One of the most compelling findings was that millennial SBOs have an overwhelming sense of caution – especially when it comes to decision making for their own businesses.

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This is in part due to the demographic’s highly conscientious personality makeup and the world they grew up in, full of overprotectiveness and turmoil. Millennials experienced the Great Recession and the damages it has done to personal wealth and to organizations, due to corporate greed, lack of compliant behavior and destruction of much of what their parents built.

All these events and experiences have triggered an overwhelming sense of caution, slowing down their pace in business to ensure that they are being cautious and avoiding making the same critical mistakes they once witnessed.

The study also found that the cautious nature of millennials drives them to a balanced nature of both emotional and rational decision making.

Millennial SBOs make decisions from the heart, but they need a healthy dose of rational thinking in their decision-making process.

More information is widely available today, and they are better informed than any previous generation, so they are naturally going to add more rationality to their decision-making process than ‘older’ SBOs, that have traditionally made decisions based off emotions.

Finally, millennial SBOs are driven by purpose, passion, autonomy and collaboration, rather than profit or financial success. The belief that millennials are lazy and drifting through life couldn’t be further from the truth. They are just motivated by their values and will give their all to a brand that shares the same beliefs. Millennials are passionate about the businesses they create, as they are established with a greater sense of purpose in mind.

Missing the mark on the make-up of millennials Millennial SBOs are a group unlike any we have ever seen, motivated by different ideas, different purposes and different messages than we once thought. Through our research, we now have the ability to understand millennials and have lifted the veil in what is needed to better connect with the demographic. Beyond Cargo alone, these insights provide a framework for big brands to have more educated and personalized conversations with their customers, to ultimately build stronger emotional connections with millennial SBOs as they become the largest SBO group in North America.

CANADIAN SMES

R E M A I N C A U T I O U S LY OPTIMISTIC AMID

RISING COSTS AND G L O B A L U N C E R T A I N T Y,

ACCO R D I N G TO L AT E S T I N T E R N AT I O N A L S T U DY

R

ising costs are the greatest challenge facing small businesses in Canada, according to the latest Global Business Monitor study from global SME partner, Bibby Financial Services (BFS) and global leader in trade credit insurance Euler Hermes.

Findings of the research, based on a survey of more than 2,300 SMEs in 13 countries across Asia, Europe and North America, show that two in five businesses (42%) believe rising costs and overheads are their greatest challenge. Cash flow (34%) and government red tape (28%) were also cited in the top three concerns in 2019.

Despite concerns about the knock-on effects of global uncertainty, 49% say they believe their business performance will improve in the next 12 months, and 40% believe they will maintain existing growth levels.

54%

Business confidence is relatively high with of SMEs reporting that the Canadian economy is going strong and

39% expecting it to improve in the next 12 months

Rising costs, tight cash flow and government regulations are the top three issues facing small businesses today

(34%)

SMEs are struggling with One in three cash flow and half expect growth in 2020

Ludovic Subran, Global Chief Economist, Euler Hermes, added: “As the risks of a recession rise and global GDP is expected to grow at its slowest pace since 2009 in 2020 (+2.4%), it is all the more important that SMEs have virtuous payment loops to avoid going bust. Global insolvencies are expected to rise by 8% in 2020 for the fourth consecutive year, and one in four bankruptcies for SMEs comes from a non-payment.”

The third BFS Global Business Monitor since 2016 shows Canadian SMEs are engaging in international trade. Though only about 28% export goods and services, 42% of exporters report that exports account for over 50% of their sales. Access to finance plays an important role in businesses’ ability to sell internationally with 44% ranking it as the number one requirement to make it easier to export.

Managing Director at Bibby Financial Services, Canada, Kash Ahmad, said: “It is an exciting time for Canadian SMEs. Despite current challenges and wariness about the global economy, Canadian businesses remain strong and in good position to take advantage of growth opportunities at home and abroad.

“In addition, it is important for businesses to continue to have the confidence to invest in times of economic uncertainty as they’ll emerge stronger than before. Canadian SMEs are on the right track with 89% planning to invest over the next 12 months. Investment in sales and marketing coupled with a relatively stable domestic economic environment offer the perfect conditions for businesses to seek new opportunities worldwide.”

About Bibby Financial Services Bibby Financial Services is a leading independent financial services partner to more than 10,900 businesses, providing more than $1.25 billion in funding annually and handling $11.6 billion in annual client sales.

With over 40 operations in 14 countries spanning 3 continents, BFS provides asset-based lending and factoring solutions to help businesses grow in domestic and international markets.

To find out more about Bibby Financial Services, please visit www.bibbycanada.ca.

About Euler Hermes Euler Hermes is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk. Our proprietary intelligence network analyses daily changes in corporate solvency representing 92% of global GDP. We give companies the confidence to trade, and be paid. We compensate your company in the event of a bad debt, but more importantly, we help you avoid bad debt in the first place. Whenever we provide trade credit insurance or other finance solutions, our priority is predictive protection. But, when the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business. Headquartered in Paris, Euler Hermes is present in 50+ countries with 5,800 employees. In 2018, our consolidated turnover was €2.7 billion and insured global business transactions represented €962 billion in exposure.

For more information, please visit: www.eulerhermes.com

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EMPLOYEE

THE BIG CHALLENGE

THAT MID-SIZED FIRMS HAVE WITH EMPLOYEE PENSIONS

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

ews last month that the once-mighty manufacturing and innovation giant GE was planning to freeze its generous pension plan for some U.S. employees, came as little surprise to those of us in the accounting and finance industry.

That’s why many companies now offer alternative options such as RRSP-matching or group RRSP programs. These plans are administratively simple, cost far less and don’t come with the same legacy burdens as formal pension plans.

GE’s official reasoning was a focus on slashing debt and reducing the billions of dollars in future pension obligations weighing down its balance sheet. But the underlying culprit was surely the unaffordability of these expensive plans.

But mid-sized firms competing for talent in competitive markets—often against deeppocketed multinationals—need to weigh their pension strategies carefully. A recent survey commissioned by the Healthcare of Ontario Pension Plan found that 80 per cent of Canadians would trade better wages for a pension plan, underscoring their undeniable appeal to employees anxious about funding an eventual retirement.

Put simply, many companies are facing crippling legacy pension liabilities due to the fact that historical rates of return on investable funds were generally far higher 20 or 30 years ago than those expected today.

This reality has left some corporate pension plans grossly underfunded as a result.

As such, large organizations have been pulling back on their gold-plated defined benefit pensions—which are based on an employee’s years of service and salary—en masse. Many are offering defined contribution plans and other alternatives in their place. Employees pick up a part of the tab for the former, delivering significant bottom-line savings.

That shift away from offering lavish benefits long ago trickled through to the small and medium-sized sector. Nowadays only a relative few small companies will offer a pension plan, defined benefit or otherwise.

But at the medium-sized level, it gets more complicated.

To be clear, the math is no less daunting— while these benefits are less costly once your workforce grows beyond 150 or 200 employees and premiums become more diffused, the added administrative burden can be overwhelming. Pension plans must be registered with provincial and federal authorities and come with regulatory compliance and reporting requirements. Even if those responsibilities are outsourced to less expensive third-party service providers, they can still be expensive and time consuming.

Some Chartered Professional Accounts have advised clients to hop off the pension train altogether.

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If your business has reached the mediumsized threshold and is agonizing over whether to introduce (or sustain) an employee pension program, ask a few basic questions: Can you afford to maintain it given current cash flow and revenue projections? Is it a relevant tool for attracting and retaining top talent?

Is it in alignment with your competitors’ entitlement offerings? If yours is an industry such as professional services or tech, where organizations are clamouring to hold on to precious talent, then perks and benefits are a critical part of our compensation package.

If you operate in an industry with a glut of available professionals, then offering a lavish pension plan may not be as important.

What matters most is customizing any package to ensure that it works for your organization over the long term. The last thing you want is for a potentially beneficial talent-attraction and employer branding tool to turn into a financial albatross. Work with your accounting team to find a solution that makes sense—and be ready to embrace alternative pension options.

EMPLOYEE RELATIONSHIP

CANNABIS EDIBLES PRESENT A

NEW LEVEL OF RISK FOR EMPLOYERS

W

hen cannabis became legal in Canada a little more than a year ago, employers became understandably paranoid about the potential new employment law risks bearing down on their workplaces.

It turns out their concerns were largely unfounded.

LAURA WILLIAMS 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. Her core areas of practice include pre-termination advice and strategy, labour relations, workplace safety and insurance, wrongful dismissal litigation, workplace investigations, human rights, disability management, workplace violence and harassment compliance, privacy compliance, employment standards, workplace policies, employment contracts, restrictive covenants and workplace culture recovery. http://www.williamshrlaw.com

While Bill C-45, the Cannabis Act, enabled Canadians to possess up to 30 grams of cannabis and consume it in authorized locations, provincial legislation quickly prohibited its use in most public spaces. Much to employers’ delight, workers were no more inclined to come to work high after legalization than before.

Still, most organizations wisely implemented workplace health and safety policies that restricted workplace use of cannabis and cannabis products. This was particularly important in safety-sensitive environments such as construction sites or production facilities, where the use of heavy or potentially dangerous machinery requires an employee’s full, unimpaired attention. Having workplace policies in place also helps limit employers’ liability should a worker get high on the job.

That’s especially important because on October 17, 2019, four potentially problematic categories of cannabis products became legal.

They included edibles, topical creams and makeup, and cannabis extracts. Although these classes of products became are now legal, they won’t become available for purchase until at least December 16, 2019, under Health Canada’s product approval framework.

Now, as with the availability of dried cannabis, the likelihood of your employees suddenly morphing into slovenly potheads is extremely low. But edibles pose entirely new challenges for employers, particularly as it pertains to managing workplace impairment.

The most obvious is that products such as edibles have no odour and offer no immediate, telltale signs of usage. Importantly, edibles can be far more potent than cannabis consumed in other forms. Their effects can also be delayed.

So, an employee who partakes and seems fine in the short term can present entirely impaired an hour later when they’re in a client meeting.

Worse, they may not understand how high

they are, creating a variety of brand-damaging risks or health and safety issues for your organization.

Some employers may be concerned that there’s the potential for inadvertent use or pranking, leading to the possibility that an employee could mistakenly ingest cannabis-laced edibles and become extremely ill or so impaired they put themselves or their colleagues at risk in the workplace. However, the possibility of this is remote, as there are a variety of restrictions on cannabis edibles that will be approved for sale—namely, easily mistaken items such as cannabis gummies or chocolate.

Ultimately, the legalization of these new products likely will not result in a significant increase in impaired employees at work or significantly affect the workplace, if employers are prepared. This includes training managers to look out for signs of intoxication, and ensuring that workplace policies clearly set expectations regarding recreational cannabis use, no matter what form it’s in, if they haven’t done so already. If policies are already in place, employers would be well-advised to reiterate conduct expectations.

The bottom line is that understanding and preparing for this change should be high atop employers’ HR to-do lists in the coming months. Employers who take the time to do so have little to worry about when it comes to the legalization of these new classes of cannabis products.

Still, most organizations wisely implemented workplace health and safety policies that restricted workplace use of cannabis and cannabis products.

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SECURITY

CONSIDER THE SECURITY RISK

BEFORE RENTING SPACE IN A CO-WORKING OFFICE

By Winston Stewart

WINSTON STEWART

President and CEO, Wincon Security

Winston Stewart is the President and CEO of Wincon Security, a Scarborough, Ont.-based security firm that has delivered property monitoring and protective services to retail, commercial, industrial and condominium clients across the Greater Toronto Area for more than 25 years. For more information, visit www.wincon-security.com

C

o-working environments are all the rage these days. So, too, are the brands that manage them, such as WeWork. Well, at least WeWork used to be a Wall Street darling, until investors began closely analyzing the company’s financial statements and realized the company was losing office-loads of money. But overall, shared office spaces are gaining in popularity because they simply make business sense. Why? They allow organizations to reduce rental costs, typically require lease commitments of two years or less and offer flexibility to scale based on the company’s performance. If your organization is growing, you can simply rent more desks.

These environments are so popular that WeWork is now the largest single landlord in major centres such as New York, while real estate consultancy CBRE Canada estimates that Canadian cities will see about 6.1 million square feet of space being claimed by coworking facilities by 2020—an increase of 300 per cent from 2014. So, what’s not to love about commercial co-habitation?

Plenty, at least where security is concerned.

First, co-working environments generally place disparate organizations together in the same, open-concept offices. This is definitely an efficient use of space and resources, but many of these small organizations lack employee policies that set parameters around workplace behaviour. Privacy is another concern. That can be problematic, setting the stage for everything from harassment and human rights complaints to various other forms of legal liability.

Next, there are concerns with staff and asset security. When you manage your own workplace you can generally control points of entry. It’s virtually impossible to know who’s entering a facility that can be accessed

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24-hours a day when you’re not the landlord.

Workers tend to come and go as they please, bringing clients, service providers and friends into these shared spaces. In most cases, individuals aren’t registered or tracked because in a co-working environment, the free flow of people and ideas is paramount. It’s what adds to their appeal.

Even though a high proportion of workplace crime—especially theft—is internal, you can better manage risk when you know the people occupying your space and can account for their movements. This is especially important when your company deals in sensitive client information such as credit card or financial data, or proprietary intellectual property. Many large organizations are now requesting information about security protocols in their RFPs or as part of their supplier vetting processes. They tend to frown upon organizations that can’t reliably secure their office doors, let alone property such as laptops (and the data they may contain).

So, if you find yourself leaning towards renting space at a co-working facility, look for one that offers round-the-clock security, has surveillance cameras and electronic key fobs.

The environment should have a documented code of conduct for workers that’s consistently enforced, along with lockers to secure assets such as computers.

All tenants should be trained in security protocols and, at the very least, reminded to lock the door before they leave at night.

These are simple, effective measures that can help prevent unnecessary loss. The trick is following them on a regular basis.

Sacrificing that control is a challenge that begs an important question: Do the benefits of a co-working space outweigh the security risks?

It’s worth seriously considering before moving into one of these ultra-trendy spaces.

PHILANTHROPY

J. DENISE CASTONGUAY

Executive Director and CEO of Canada Gives J. Denise Castonguay is the Executive Director and CEO of Canada Gives, a federally registered not-forprofit organization committed to helping philanthropists build and grow high-impact foundations.

For more information, visit www.canadagives.ca

CORPORATE PHILANTHROPY WORKS BEST WHEN IT RELATES TO YOUR BUSINESS

I A 2018 GLOBAL SURVEY OF MILLENNIAL-AGED EMPLOYEES BY DELOITTE FOUND A COMMON THEME. RESPONDENTS FELT THEIR EMPLOYER SHOULD BEHAVE ETHICALLY AND STRIVE TO MAKE A “POSITIVE IMPACT ON SOCIETY AND THE ENVIRONMENT.” IN OTHER WORDS, THEY WANT TO HELP THEIR EMPLOYER TURN A PROFIT, BUT THEY ALSO WANT TO WORK FOR A COMPANY THAT’S COMMITTED TO MAKING A DIFFERENCE.

t’s always heartening to see a small to medium-sized company donating time or funds to a charitable cause. That could mean writing a cheque to fund a capital project such as the construction of a hospital, or allowing staff to participate in efforts to build housing for a family in need of shelter.

Indeed, corporate social responsibility has become a key aspect of many organizations’ mission statements, not to mention a tool to attract, retain and engage top talent. For Millennials, in particular, having the opportunity to give back to their communities is one of the most important must-haves on many of their employment wish lists. Case in point: a 2018 global survey of Millennial-aged employees by Deloitte found a common theme. Respondents felt their employer should behave ethically and strive to make a “positive impact on society and the environment.” In other words, they want to help their employer turn a profit, but they also want to work for a company that’s committed to making a difference.

While we’d all likely agree that any giving is good giving if it helps a charity or a cause in need, there’s a key opportunity that’s often missed by benevolent business owners and their teams. That’s a focus on giving back in a way that aligns with their organization’s operational capabilities, whenever possible.

We’ve seen corporate groups lend their time for activities such as renovating a non-profit’s facilities or to beautify a local

park, as two examples. Again, these are all great initiatives that are worth lauding.

But when you consider that some of these organizations are full of highly-skilled professionals such as accountants, IT professionals or strategic consultants, it begs the question: Does it make the most sense for their employees to spend hours painting a community centre, or to put that time to even better use by addressing some of the charity’s administrative gaps?

These are the areas where charities often struggle to afford key investments. For example, some accounting firms will offer charities free tax return or audit services to maintain best practices, maximize available tax credits and benefits, and remain in full compliance with Canada Revenue Agency rules. An ad agency might work pro bono to develop and execute a fundraising campaign. We’ve seen HR professionals work with women from challenging backgrounds to teach the kind of job interview skills they need to obtain life-changing employment.

Now, there’s absolutely nothing wrong with highly-skilled talent lending their time for a little manual labour—and sometimes charities need all the help they can get, anywhere or anyway they can get it. But when your organization can take a strategic approach to its philanthropy and make investments of time or money that create a significant positive impact for a charity and its programs, there’s no better tool to produce meaningful, long-term results.

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INTERVIEW

4 STEPS TO GROW

YOUR SECURITY FROM

PREVENTION

TO RESILIENCE Theo Van Wyk is Chief Technology Officer of Scalar Decisions, a CDW Company.

In his role as Chief Technology Officer for Security at Scalar, Theo provides cyber security leadership for Scalar's National Security practice. This includes the strategic direction, planning, and service launches related to cybersecurity consulting and managed security services.

Theo has also taken on the role of being the security spokesperson for Scalar through various media and speaking engagements. Theo has spent the last 18 years in the Cyber Security arena working with customers to address their IT security and risk challenges. Starting with data risk in mind, Theo advises and guides customers to develop a balanced security approach, ensuring the recommended security solutions enables their Governance, Risk and Compliance program, while supporting the needs of IT Operations

Photo Credit: Scalar

As Chief Technology Officer at Scalar, what can you tell us about the importance of cyber security for an organization?

Cyber security is really all about protecting the longevity of an organization, and should be a vital component of any business, no matter the size.

It’s no secret that organizations are experiencing cyber attacks every single day, whether they know it or not. In fact, in the 2019 Scalar Security Study, we found that 100% of the organizations surveyed encountered some form of security incident or attack over the past year – at an average of 12.5 attacks.

For me, the most important component of a robust cyber security plan has evolved from prevention to resilience. It is important to recognize that no organization is immune to cyber attacks and that they must adapt to the ever-evolving cyber threat landscape by analyzing new ways to prepare for, defend against and respond to threats.

When analyzing your organization, first consider your resiliency. In the event of a cyber attack, would your business be prepared? Would you be able to continue your day-to-day operations, even while experiencing an incident?

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Once you understand your business’ attack surface and processes, you can leverage a risk based approach to identify critical assets and data. It will now be significantly easier to find the solutions and partners who can help create and implement a bespoke plan for your business.

It’s especially important for small and mediumsized enterprises to instill a culture of prepare, defend and respond from the very beginning in order to set a sustainable precedent for cyber security as you grow.

What are some of the procedures / initiatives that business owners should take to protect their company from cyber threats?

To protect any organization and mitigate cyber threats, business owners should focus on a prepare, defend and respond approach.

When considering preparation, investigate how your business and users leverage information, technology assets, services and data.

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Complete a threat/risk assessment that will allow the business to understand how different threats and threat actors can attack and impact your systems and data.

•

Develop an Incident Response plan to ensure effective protocols are in place to address an incident.

The insight gained through these steps will allow the business to prioritize spend in the defence and response phase to ensure maximum security effectiveness and resilience.

During this phase, many consider working with a security partner to ensure a well-balanced and successful outcome.

Employee training – for preparation at work and at home – is another important component of cyber resilience that often goes unaddressed.

In our inaugural Digital Citizen Survey, we found a growing disconnect between how prepared Canadian employees feel towards cyber security in the workplace, compared to the amount of training they receive from their employers. Of the respondents, 75% felt they were prepared to deal with cyber security threats in the workplace, but only 60% received training from their employers.

These figures are especially concerning because employees are often the first and last line of defence in a cyber security strategy. In fact, the threat landscape has evolved to a point where cyber attacks are no longer isolated to the

EXCLUSIVE INTERVIEW

BMW: THE ULTIMATE

EXPERIENCE FELT IN YOUR HEART AND ON THE ROAD

Hans Blesse President at BMW Group Canada

You spent most of your career working at BMW. What is it about the organization that attracts you?

Ever since I was young, I’ve loved cars and always had a special place in my heart for BMWs; aside from that, however, I think what I admire most about this organization is the culture of success that continues to define BMW. We have great people working not only here in Canada, but around the globe who continue to foster a winning mentality. As well, our products are world class and BMW’s engineering continues to be among the best in the industry. These are things that make this company very easy to stand behind.

You actively went searching for the best dealer. What were you hoping to learn from them that you didn’t already know?

At the time, I was young and looking to enhance my skillset more than anything. With a background as a mechanical technician, experience within the automotive industry and a love of the BMW brand, it was a perfect fit. I wanted to learn from the best. The other thing that drew me to Vancouver was the opportunity to work in a new market. Uprooting and moving to a new place always presents a challenge, but it is great for personal growth.

Photo Credit: BMW Canada

In your opinion, what does BMW stand for? What do people think of when the BMW brand is mentioned?

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BMW has dedicated itself to producing the “Ultimate Driving Experience,” and I believe the thrill of driving is one of the first things that comes to mind when someone sets eyes on the BMW roundel. Whenever I talk to fans, they always comment on things such as driving dynamics, handling or the excitement they feel when they put their vehicle in sport mode. Ultimately for me, the genuine feeling of joy I get when I’m behind the wheel of a BMW is second to none – no matter if it’s combustion powered, or electrified.

FRANCHISE

TOP 3 BENEFITS OF

BUYING A FRANCHISE Independent businesses are typically more expensive and time consuming to build from scratch compared to buying a licensed franchise. According to the Small Business Association (SBA), 30 per cent of start-ups fail within the first two years and 50 per cent fail within the first five years. Although many start-ups do end up becoming quite successful with the right business plan, purchasing a franchise is often a better choice for entrepreneurs. Especially if they are looking for a way to get instant success. There are many benefits of purchasing a franchise as opposed to starting a business from scratch.

Here are the top 3 benefits of buying a franchise.

Photo Credit: Depositphotos.com

BRAND RECOGNITION

C A P I TA L

Chances are, a franchise already has a reputed brand. It’s one of their greatest strength. With an established reputation and image, it makes it easy to build on that. Generally speaking, companies spend a considerable time and effort on building and tweaking their brand. If they’ve managed to accomplish this, then their brand is successfully well known and the image that is projected makes them trustworthy. Therefore, an entrepreneur who purchases a franchise doesn’t need to spend as much when it comes to branding and marketing. Since the franchise is already well known, marketing it won’t be that difficult and they can just continue to build on that. People already know and trust the image that the franchise has projected. Additionally, brand recognition means that you already have a loyal clientele which puts you at a significant advantage. Entrepreneurs are building a business off an already well-established model.

One of the biggest benefits of purchasing a franchise is capital. When you start-up a business, you need to put a lot of capital upfront. Whether it’s for inventory, branding and marketing, licencing or equipment, a significant amount of capital is required at the beginning.

However, when you purchase a franchise, most of those costs are already taken care of. One of the main reasons why most entrepreneurs turn to franchising is because it gives them the opportunity to expand without the risk of debt or the cost of equity. Since the franchisee already provides all the capital required to open and operate a unit, it lets entrepreneurs grow using the resources of others. With the franchisor paying the majority of the expenses, entrepreneurs are not required to invest a lot of capital. This significantly reduces the risk and lets them run their franchise with peace of mind.

With a franchise, you get a support system from the start.

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B E T T E R S U C C E S S R AT E When you start a business from scratch, there’s always that fear of, will it be successful? Sure, if you’ve created a proper business plan, you already have a general idea that there’s a good chance that it will be successful. However, building your brand and gaining loyal clients all takes time. Time that, if you’re short on capital, you don’t necessarily have. However, when you purchase a franchise, since the brand is already well known, your success rate is much higher.

People already know and trust the brand. Many studies throughout the years have demonstrated that franchises have a higher success rate compared to a start-up business. Since the franchisor has already invested in a considerable amount of work, high-brand awareness and recall has already been accomplished successfully.

Therefore, your success rate is significantly higher. With a good support system, a wellknown brand and access to a great business network.

BUSINESS

SHORTCUTS: TOP 3 TIPS TO

SILVIA PENCAK

RUN BUSINESS THE SMART WAY

President, WBE Canada

We use shortcuts daily to save time and energy.

Whether it’s people, technology or other tools, we all enjoy avoiding the hassle as often as possible.

Shortcuts can be especially useful when we are faced with obstacles that derail us. Today I want to share with you my 3 favorite shortcuts that can transform any type of business.

Shortcut Number One: Get to know yourself and your people. What are they good at? What do they enjoy doing? What are the missing strengths on your current team? How can you plug these holes with new talent?

FOCUS ON STRENGTHS

We should consider ourselves lucky to live in this time and age. Tech innovations are absolutely mind blowing. Even better, they can significantly improve productivity and efficiency in your business.

It still amazes me how much time and energy people waste on improving their weaknesses. Even worse is when they place their team members in the areas they’re not good at. When you think about it, each of us has strengths and weaknesses - there are things we are good at and things we are... not so good at.

Let’s say that you are good at what you do - you can select the right materials and you have processes nailed down tight. But when it comes to marketing your business - you find yourself in unfamiliar territory.

You have multiple options, but I want to show you two very different scenarios that I normally see people using. First, you can put on a mad scientist hat and start studying marketing to improve your knowledge and skill set. Or you can hire someone who is good at marketing and have them support this area of your business while you focus your best energy on your core strength area.

As you can most likely imagine, each decision will lead to a different outcome. In the first scenario, it will take you months to learn while your processes might fall apart or your material selection will suffer - because you will not have time to focus on them.

You probably see where I am heading with this.

Focusing on your strengths and finding the right people and placing them in the areas of their strengths will create a massive shortcut in your business that will position you well ahead of your competition. Instead of wasting your time learning and figuring things out you will continue moving forward and building momentum.

IMPLEMENT TECHNOLOGY

As an early adopter I don’t jump on every new gadget or tool the moment it is released, but I can get very excited about things that can improve productivity. Our team uses technology for team communication, project management, scheduling meetings, archiving resources and more. This allows us to collaborate even in spite of working from different locations or managing events and traveling.

Shortcut Number Two: Embrace technology. What is the biggest bottleneck in your business right now?

Is it business inefficiency, team miscommunication or bad customer experience? What pieces of technology are already out there that can improve the status quo? Which of the solutions out there will be the best fit for your business, team or other solutions you are already using? (The last thing you want is more confusion and inefficiencies.)

IDENTIFY POWER NETWORKS Now that you have a powerhouse team and top notch technology, it is time to maximize your business potential. My absolute favorite ninja technique to save time and effort is to tap into the work that others have already done - existing networks.

To do it well, you need to start with the goal in mind - what are you trying to achieve? Who are you looking for? How can they help? What will be the ideal outcome?

Let me give you an example. Let’s say that you are a business woman. You are in a male dominated industry and it will take you years to claim your spot in the supply chain due to many roadblocks including gatekeepers or existing supplier-vendor relationships. You need to find a network that will allow you just that - connecting with your ideal buyers in an environment where you are not disregarded, but celebrated as a woman-owned business. Such networks do exist. I know because I am overseeing one. WBE Canada connects Canadian Women Business Enterprises (WBEs) to corporate and government supply chains. Through networks like this, your business can gain insight into industry, connect with buyers and champions within specific companies and most importantly, be added to the list of vetted suppliers used by buyers who WANT to engage women or new innovative suppliers in their supply chain.

Power networks can save you a tremendous amount of time - time you would otherwise spend researching, marketing, selling, following up.

There are many others you might want to tap into depending on your business needs - utilize social media influencers to get a boost for your marketing, join industry associations to access industry specific knowledge and resources or join a board of directors to expand your network and contribute to your community.

Shortcut Number Three: Tap into power networks.

What area of your business needs improvement? Is it your marketing, networking, industry connections, mentorship? What networks already exist that can help you improve your results in that area?

These are just a couple of examples. I encourage you to start being intentional about the shortcuts you develop in your business. Identify them, ask around, keep your mind open. Remember, doing your business the way you’ve always done it will create the same results over and over. To see better results, you need to change the input.

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INTERVIEW

EXCLUSIVE CHAT WITH

MARVIN CRUZ Senior Research Analyst at CFIB and author of the report, Taxing Payroll: A Barrier to Business Growth and Competitiveness.

You recently released your landmark payroll tax report, Taxing Payroll: A Barrier to Business Growth and Competitiveness. Tell us about payroll taxes. Why are they a concern for small businesses?

Payroll taxes, such as Employment Insurance and the CPP/QPP, take a big bite out of the resources available to employers. The chunk being taken will get even bigger with the CPP/ QPP’s ongoing expansion, which will see premiums rise by at least 20% by 2025. As our report cites, the burden associated with such payroll taxes is so severe that 77% of business owners point to payroll taxes as the most harmful tax for business growth.

What would you say is the biggest impact that payroll taxes have on the success of a small business?

Payroll taxes play an important role in the growth and competitiveness of small businesses. In large part, not only does the burden associated with payroll taxes limit the resources available to grow a business (i.e. innovation, increasing wages, or hiring new staff), but in effect, as the these taxes are based on employees’ wages, businesses are ultimately punished for trying to grow and create jobs.

Why are payroll taxes such a big challenge for SME owners when it comes to growing their business?

Payroll taxes are damaging to business growth because they impose a heavy administrative burden and are not scaled up or down depending on how profitable a business is. For a small business owner, every dollar taken away hurts, especially if you are not turning a profit.

What are some of the strategies or initiatives that the government can put in place to reduce the impact that payroll taxes have on SMEs? To avoid suffocating small businesses, governments need to move away from payroll taxes. Instead steps need to be taken to provide businesses the opportunity to re-invest and increase the pay, benefits and training opportunities for their employees. For instance the federal government can: halt or slow down additional CPP increases; implement an EI credit which effectively lowers the rate for small businesses; introduce an EI holiday for hiring youth aged 15 to 24.

Photo Credit: CFIB

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