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Identity Theft Stuart Blair

Minding Your Own Business Gary Belding

Build on What You Do Right Verne Harnish

Minimize Your Marketing Risk Doug Daley

Small Business is Big Business George L. Cooke

Feature: Ducks Unlimited


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CONTENTS Why Bond? 8 - David Kubbinga Identity Theft - Stuart Blair

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Minding Your Own Business - Gary Belding

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Employee Alignment Starts with Clarity - Andy Buyting

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Why “Exceeding the Customer’s Expectations” Can Be Dangerous – Roy Prevost

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Attitude is the Most Important Quality in Sales... or is it? – Russ Mallard

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Build On What You Do Right - Verne Harnish

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Minimize Your Marketing Risk – William Adams

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Small Business is Big Business – George L. Cooke

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Feature: Ducks Unlimited

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401 Bishop Drive, Fredericton, NB E3C 2M6 Ph: 506-459-3000 Fax: 506-458-2088 Toll Free: 1-888-475-2246 www.caininsurance.ca

Cain Insurance Risky Business Magazine is published by Carle Publishing Inc. All content, copyright © 2012, Carle Publishing Inc.All rights reserved. This publication may not be reproduced, all or in part, without written consent from the publisher. Every effort has been made to ensure the accuracy of all content in this publication, however, the publisher nor Cain Insurance will be held responsible for omissions or errors. Please address all editorial and advertising inquiries to Carle Publishing Inc., 60 Shayla Court, Fredericton, NB, E3G 0N3, Canada. Carle Publishing Inc. is not held responsible for the loss, damage or any other injury to unsolicited material (including but not limited to manuscripts, artwork, photographs and advertisements). Unsolicited material must be included with a self-addressed, overnight-delivery return envelope, postage prepaid. Carle Publishing Inc. and Cain Insurance will not give or rent your name, mailing address, or other contact information to third parties. Subscriptions are complimentary for qualified individuals.

Printed in Canada by: Graphic Design and Layout Provided By: Carle Publishing Inc. Fredericton, NB

Carle Publishing Inc. 60 Shayla Court, Fredericton, New Brunswick E3G 0N3 Phone: (506) 238-4683 Fax: (866) 609-5674 Email: andy@carleventures.com Website: www.carlepublishing.com

EDITOR IN CHIEF

PUBLISHER CREATIVE & DIRECTION DESIGNER CONTENT COORDINATOR CONTRIBUTORS ADVERTISING COORDINATOR PHOTOGRAPHY

Andy Buyting Carle Publishing Inc. Carle Publishing Inc. John Christenson John Christenson Natalie Neville Andy Buyting Gary Belding Stuart Blair Verne Harnish William Adams Roy Prevost Russ Mallard Andy Buyting (National) Holly Christie (Local) All images sourced from Carle Publishing Inc. or istockphoto.com unless otherwise identified.

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WELCOME

TO RISKY BUSINESS!

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elcome to our second edition of Risky Business Magazine. Our first magazine run was in the spring of 2012 and was distributed in the Fredericton area. We are pleased to roll this edition out to businesses across the province of New Brunswick. Throughout 2012 we have noticed a tightening of business budgets in New Brunswick. Business numbers for many are down. This trend has put pressure on business owners to pay close attention to expenses and this, of course, includes the cost of Managing Risk.

We continue to service the business insurance needs of organizations across our province. We are excited to introduce two new insurance programs to our growing line-up; Waste Management and Moving & Storage. Economical Insurance has developed these products and we have had great success introducing them to the New Brunswick market place.

We encourage not only waste management & moving companies to contact us, but all businesses in New Brunswick who are concerned about managing their cost of insurance and risk expense overall. Please enjoy our magazine and keep your eyes open for round three coming out in the future.

Dan Cain & Luke Cain

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WHAT’S HAPPENING Welcome…

…to the three new members to the Cain Insurance Team! Dennis van den Heuvel has joined the Commercial Lines department in an Account Manager role. After 6 years of mainly Personal Lines experience he’s looking for a different challenge. Devon Moir is the other new face at the reception desk. She has joined our Personal Lines department assisting with Data Entry. Joan Gillespie is our new receptionist- the smiling face that greets you when you walk in the door or the happy voice on the phone.

Congratulations… …to Melanie Maunder who has recently moved from the role of Commercial Account Manager to Commercial Insurance Producer. Melanie has been a valued Cain Insurance employee for the past 15 years. …to Amanda DeLong and Melanie Maunder who will receive their Canadian Accredited Insurance Broker designation in October. They’ve worked hard and have done very well- we’re proud of them! …to the 2012 High School Graduates- Ryan Mills, son of Shelley Mills; Ryan Cain, son of Luke Cain; and Alex Gordon, son of Laura Gordon. …to Bill & Dot West who celebrated their 50th Wedding Anniversary in June! We wish them all the best for many more years to come. 6

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…to Jeff & Becky Crawford who tied the knot on August 4th, 2012 in Miramichi. Best wishes for a long & happy life together!

Good Luck… …to Danielle Scholten, the recipient of the Don Cain Memorial Scholarship for 2012. Danielle is attending UNB in the Bachelor of Science Program. The Scholarship is open to all of our personal & commercial insurance customers and their children, along with the employees of our commercial insurance clients & their children. Keep an eye out for the 2013 applications next year.

Good Job… …to our Cain Insurance Team who will once again be sponsoring a less fortunate family this Holiday season. We collect fund year-round, with some extra fundrasing done in November & December. ...to all the staff who have continued to donate to the Food Bank and who’ve orgaznied fundraisers all summer for a family with a very sick child. Way to go Team!


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WHY BOND?

by David Kubbinga Senior Surety Specialist, AVIVA Canada

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hy bond? The benefits of bonding contracts can range from meeting security requirements to freeing up capital. To help understand the benefits, let’s take a look at the contract surety process. First and foremost, contract bonds allow contractors to meet the security requirements of contracts. Secondly, contract bonding can be likened to an accreditation performed by the surety company. The bond reflects the skills and capabilities of the contractor, and provides an overall assessment. When looking at the benefits of contract bonding, it helps if we break it down into the different sectors of the construction industry. These bonds allow contractors to meet the security requirements of a specific contract. Contracts can require substantial financial security from the tendering stage through to completion and beyond to warranties and maintenance periods, tying up funds for long periods of time. With contract bonds, these funds are left available for the contractor to use more effectively. Having funds tied up can put a strain on a contractor’s resources. With the support of a tender bond the contractor can search and select numerous contracts, which otherwise would prove very difficult. This type of bond lets the contractor get on with the next project without having to wait for the release of tender security. For a contractor, a surety facility provides an ongoing source of information to assist in maintaining their business plan. A surety facility can help maintain a contractor’s consistent approach within the market place. Bonded contractors benefit from access to their surety’s knowledgeable assessment. The assessment highlights the firm’s strengths and capabilities, targeting areas of improvement, and reinforcing all areas of operations.

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A bond facility also assists in assessing potential contracts that may lead to an expansion of the contractor’s field of expertise or territory. Surety companies can offer a wealth of information. Bonding a contract helps level the playing field during the tendering process. It assists the Owner in a preselection of those contractors best suited to the nature of the contract being considered.

Lending institutions often request that contracts be bonded as a requirement. They value the benefits that accompany a bonded contract. Similar to a project owner, general contractors use bonding requirements as a means to qualify subtrades for contracts. All the aspects of surety prequalification can be applied to the sub-trade fields as well.

Contractors who provide bonds have a partner willing to vouch for their ability to perform their contractual obligations. The contractor has a company willing to “put their money where their mouth is” by providing such security on behalf of the contractor. A contractor with a surety as a business partner has a company that demonstrates a willingness to stake a financial risk in the contractor’s abilities to perform. That kind of a recommendation can mean so much in a competitive marketplace.

Sub-trades entering into contracts supported by contract bonds between the owner and the general contractor, have a higher comfort level knowing contract funds are protected with a reliable source of alternate funding.

For a project owner, bonds provide a source of financial security for the performance of the project being contracted. The contract bond process is as much a pre-qualification process, as it is a source of financial security. The surety will review the requirements of the contract and match them up against the capabilities of the contract partners. Ultimately, the surety is willing to take a financial risk on the contractor’s ability to complete the project. Owners can rest assured that not only is the bonded contractor qualified, but also properly resourced. A bonded contractor is far less likely to overextend resources on other work that at some point may impede their ability to perform the contract. An owner is better protected in cases when a contractor has failed to complete the contract, resulting in cost increases. With the proper bonding in place, those increases can be covered off by sub-trades and other suppliers.

So “why bond?” can be summed up to the benefit of all parties. Contractors gain a business partner who is willing to take financial risk against the recommendation of the contractor’s abilities. Owners get a pre-qualification process and financial assurances when considering contractors. General contractors receive a pre-qualification of sub-trades. Sub-trades and suppliers gain financial assurance. There’s simply no other form of contract security that works as hard as a bond does for all parties in the construction industry. David Kubbinga is a senior surety specialist at Aviva Canada, and has more than 20 years of expertise, specializing in both contract and commercial surety business. Aviva offers a complete range of contract bonds for the construction industry as well as commercial bonds for individuals, businesses and organizations. Contact David toll free at 1-800-3636330 or david_kubbinga@avivacanada.com. For surety inquiries within the Atlantic region, contact Bill Giffin, Atlantic Region Surety Manager, at (902) 460-3144 or bill_giffin@avivacanada.com.

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IDENTITY THIEF

by Stuart Blair, Covey Basics

Stuart Blair is a partner in Covey Basics with locations in Fredericton and Woodstock. As a dealer for Swingline Canada Office Furniture, Covey Basics works with office managers and administrators, promoting a safe and healthy work environment in offices around the province. 1 Use professional or commercial cross-cut shredder, depending on the size of your office, for optimum shredding performance. 2 Position shredders near copiers/printers for quick and easy shredding of documents that might be left out on the paper tray.

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dentity theft is a form of stealing someone’s identity and pretending to be someone else by assuming that person’s identity, typically in order to access resources or obtain credit and other benefits in that person’s name. Old records you have around may seem harmless enough; for example, closed credit cards and bank accounts. But an ambitious identity thief can use the bits and pieces of this old information to assemble a profile of your current identity. If you are unsure that a document needs to be shredded—shred it! A peak season for ID thieves is tax time. Old tax records and other expired documents are being discarded. Know what shredder you need to securely destroy these documents. Shredding Best Practices A proactive approach is vital in office identity security, particularly when it comes to paper documents, which can easily be overlooked when you’re focusing on digital security measures. Paper applications filled out by employees, e-mail attachments that have been printed out, and even handwritten notes about your competition all require protection.

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3 Maintain strict requirements for shredding all customer printed materials the moment they are no longer needed. Printed customer documentation should be shredded regardless of the nature of the content. This prevents time wasted reviewing documents for personal information or personal content being overlooked. 4 Shred all printed employee documentation once it is no longer needed. The same rules for customers, applies to employees. Diligent shredding prevents any personal information about employees from being misplaced. 5 Shred all printed materials that might relate to your company’s strategies or practices. Once marketing, sales or financial data is no longer needed it should be shredded to prevent it from ending up in the hands of the competition. 6 Make employees aware of shredding practices and how the shredders are used.


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MINDING YOUR OWN BUSINESS by Gary Belding, Belding Business Financing Solutions

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ithout sounding self defeating, operating your own business is not for everyone. This is a follow up to my article in the Spring 2012 Issue of Risky Business Magazine, “Put on a Bankers Face”. It is true that owing your business is very rewarding and self fulfilling. It also can be very demanding on your time and financial resources. Statistics show that 85% of businesses survive 1 full year, 70% survive 2 years while 51% survive 5 years. There are a lot of factors that force businesses to close or simply exit including retirement, competition and market conditions, general economic conditions, and poor management decisions. Below are some fundamental considerations when opening or operating a business such as: 1. Business Name Your business operating name is very important. Experts have indicated that your business operating name is making your first impression and should describe your business. If the name of the business that you are operating is XYZ Company, your business is a mystery. The product or service should be part of the business operating name. You can have a corporate entity behind the business operating name but the business name should be clear, distinct, and stand out from the competition and even be unique. 2. Sole Proprietorship or Incorporation The decision to remain a sole proprietorship or incorporate is usually made for financial reasons. The obvious advantages of a sole proprietorship is being able to utilize operating losses against other sources of income (at least in the early years), less paper work, and a testing ground before a decision is made to incorporate. The decision to incorporate would result in paying less income tax, limits some of the personal liability, protection of personal assets, and generally easier to raise capital.

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3. Register for Harmonized Sales Tax (HST) The Canada Revenue Agency (“CRA”) has established a threshold if you are earning or planning to earn less than $30,000 annually, or earning less than $30,000 in the last 4 consecutive calendar quarters, you do not need to register for HST. This applies to both sole proprietorships and incorporated entities. However, it may be to your advantage to register since you can deduct the HST paid on purchases (input credits) from the HST collected (output credits). Obviously, CRA anticipates you remitting more tax than you can deduct. A word of caution, once you register for HST, you are required to file a return and the $30,000 threshold no longer applies. You can elect to file quarterly or annually depending on your sales level. 4. Focus on the business Real entrepreneurs are positive thinkers and their creative minds are always in motion. If you find a demand, you find the opportunity. A pessimist sees an obstacle in every opportunity, an optimist sees an opportunity in every obstacle. Starting a business from scratch can be a real challenge. The learning curve can be long and painful. Darren LaCroix, a world champion of public speaking said in an award winning speech, that he turned his business franchise into a non-profit organization and called the experience “valuable negative information”. Having an MBA just wasn’t enough to manage the business. Industrialist and philanthropist, Andrew Carnegie, made reference to the business skills of various generations “Shirtsleeves to Shirtsleeves again.” His famous quote was subsequently embellished - the first generation creates it, the second generation enjoys it, and the third generation destroys it. Quite simply, the founder had to work hard to make the business a success while the next generation basically operated the business without real drive and passion, allowing the business to run itself; and the third generation sat back and enjoyed the ride, at least for a short while. Business owners


Gary Belding has worked in both the private and public sectors for in excess of 37 years and understands the world of financing. Gary was the former Manager of Financial Programs with Business New Brunswick and has the experience and knowledge of the financial network and now operates his own business, Belding Business Financing Solutions, visit www.beldingsolutions.com

need to stay focused and watch the “forest not the trees�. Just look at the rapidly changing entertainment and electronics industry. You always need to be one step ahead of the industry. 5. Financing your business There are a number of financing possibilities for both business start-ups and expansions. There are also government assistance programs in certain industry sectors. Financing business start-ups are more challenging than existing businesses since the risks are higher. A business expansion assumes profitability with an established track record. As a result, lenders are more likely to participate in financing a business expansion opposed to a start-up venture. Venture Capital firms represent other investor’s capital, a group of investors, pension funds, pools of capital, etc. Raising venture capital for start-up ventures can be challenging for a number of reasons. Firstly, the valuation of a business start-up is very subjective especially among venture capitalists. To witness this, just watch Dragons Den on CBC. Separate the dramatics of television and you will notice the common denominator among the entrepreneurs. They place a much higher value on the business potential and offer a lower level of ownership equity when attempting to raise private investment. Secondly, venture capital firms may talk with 100+ start-ups and existing companies, review 20-25 proposals and potentially invest in 2-3 businesses per year. Thirdly, in the Atlantic Provinces there are a limited number of real venture capital firms. Angel Investors on the other hand, invest their own capital. Businesses seeking start-up or expansion capital may know an investor; it could be a customer, supplier, family member or someone who has a vested interest or reason in helping the business start-up, expand and grow. Angel investors tend to be one time single entry investors as opposed to the multiple investments of the venture capital firms.

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EMPLOYEE ALIGNMENT STARTS WITH CLARITY

Being clear about expectations is critical to successful recruiting and employee management by Andy Buyting, Carle Ventures Inc. “I have to tell you, I dread performance reviews. It is the least enjoyable part of running my business.” – This is a comment I hear far too often from companies I end up working with. (In fact, often the language used is much more direct.) When I hear comments like this, my reaction is always the same; “Can you show me copies of the job descriptions you use?” Nine times out of ten, herein lays the root of most staffing challenges; no clarity of expectations and what it means to be successful inside an organization. We’ve all heard the story of the professor who one day set his class up for success by giving them copies of the final exam. When confronted by the Dean as to why she did such a ridiculous thing, the professor responds; “I simply gave them what I expect them to learn. And what’s more, between now and the end of the term, I’m going to give them the answers to the exam.”

brief with very few details. This approach tends to lead to very ambiguous direction of what is expected from the individual. Other job descriptions that I’ve seen can be very long and elaborate, with a boss trying to outline every single task that a person may be asked to do in their job. The problem with this approach is that it may lead to some not being willing to do anything that is “Not in their job description.” An effective Job Scorecard on the other hand is made up of four components; 1) the Mission, 2) Outcomes, 3) Competencies, and 4) Core Values. The Mission, or purpose of the position, clearly outlines in two or three sentences WHY the position exists, and why the person is being hired into the organization. It clearly states the purpose and where this position fits into the overall strategy and vision of the company.

The professor understood something that is fundamental when setting someone up for success, something that most of us don’t get. She understood that in order to teach her students correctly, they needed to understand what they were expected to learn. An effective job description does something very similar. It sets the expectations of what an employee is expected to accomplish while working for your organization. However I’m going to suggest a twist on the traditional job description. What I’m going to recommend is that you create Job Scorecards instead. What’s the difference, you ask? Great question. A traditional job description outlines what tasks an employee is expected to accomplish. Some are very 14

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Next you want to list what the Key Outcomes are that you require from the person working in this given position. What exactly are they expected to accomplish or deliver upon? For some positions, there is only one major outcome expected, while for others it can be as many as five or six outcomes. With each outcome there must also be a specific measurement criteria that is expected and that performance will be measured against. The specific measurement criteria can take varying forms, such as:


Andy Buyting is the developer of the Hiring Right Recruiting System. Andy works with organizations of all sizes to develop and successfully implement customized recruiting processes as well as coach managers on all types of HR issues. Learn more at www.AndyBuyting.com

• A Numeric Target – such as reduce office expenses by 10% in year one, or make an average of 3 cold calls every day (750 for the year). • A Deadline – such as complete all month end reporting by the 5th of the following month. • A Task – such as complete the end of day cleaning tasks as outlined in the Closing Procedures after every shift. Whatever the outcome is, it must be measurable and able to be measured objectively. You’ll then want to outline the Competencies that a person must possess and be proficient at in order to do his/her job effectively. What skills must they have or develop? Examples of competencies might include such things as: • Organization – must keep a clean and organized desk at all times and keep filing up to date. • Creativity – must be creative in their approach to graphic design. • Computer Literate – must be able to proficiently use the MS Office suite. You essentially want to outline what skills and abilities that the person requires and is willing to further develop in order to be successful in the specific position. I have seen as few as one competency listed, and as many as four or five. Lastly, you’ll then need to outline the Core Values that define your company culture. Your core values are the characteristic traits that everyone is expected to live by. It is essentially the code of conduct or behavioral traits you expect from everyone in the company. Core values are a small handful of rules (normally 3-6) that remain constant and must be present within everyone in your organization. The litmus test for a core value is:

• You’d be willing to fire an offender over breaking your core values. • You’re willing to take a financial hit to live up to them. • Your core values are alive among your team today. Once you have a complete Scorecard that clearly outlines the ten to fifteen attributes (Outcomes, Competencies and Core Values) that define success for a given position, then you have an incredibly powerful management tool. This management tool makes up the foundation and is the basis for what is used to help guide your recruiting efforts, to clearly set expectations and to measure their ongoing performance. With clarity comes success. If you are not clear about what success looks like, it is nearly impossible to effectively recruit the right person, set their expectations and measure their performance. With the right clarity, performance evaluations should be a much more productive and enjoyable experience, and the organization will achieve much higher results as everyone is aligned and productively performing what is needed for success.

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WHY “EXCEEDING THE CUSTOMER’S EXPECTATIONS” CAN BE DANGEROUS by Roy Prevost, Customer Service Activist

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hat statement is often bantered about by corporations, customer service seminars, and publications yet, it can get you into big trouble. In fact your customer may not want to have his expectations exceeded. Here’s a possible definition that you could use as a customer service model for your business: “Excellent customer service is the process by which your business delivers its services or products in a way that allows the customer to access them in the most efficient, cost-effective and most enjoyable manner possible”. Customer service is a process and not a set of actions that might include greeting the customer, smiling, asking if you can help. Customer service is the process that begins when the customer walks through the door and ends when you want it to end. It is a common theory to assume that customer service and marketing are separate. In fact, nothing could be further from the truth. There is a blurred convergence of both aspects of your business. When one is talking about your marketing message, are you considering whether you can actually deliver on what you are selling, namely, great service. Let Me Give You an Example Recently, my wife and I and some friends bought some rather expensive tickets for an event called, ”A Day in Provence” held in the garden of one of the most prestigious restaurants in our community. The event began at 5PM on a magical sunny warm afternoon. As we walked into the garden, there were tables set up whereby some wine suppliers were sampling their different wines and we happily imbibed while nibbling on some hors d’oeuvres that were provided.

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After that great experience, we were escorted into a tent while being serenaded by a wonderful French singer playing his guitar. So far so good. Immediately our server arrived to the table with a huge bowl of artichokes. We were pleasantly surprised however upon tasting the artichokes we found that they were severely undercooked, ergo tasteless and unpleasant. We immediately called the waitress who then called the manager, he came over and made some lame excuse that there must have been in error and apologized. Then we ordered a bottle of rather expensive red wine and it came to the table very warm. Again we call the manager, he came by and said; “Well, it must’ve been left in the sun”. He then again apologized and said; “We will chill the wine for you and bring it to room temperature” It took another 15 min. to get a bottle of wine that was chilled appropriately but it left us with an embarrassing situation. When it came time to pay, I wanted to pay by debit card rather than credit card. The waitress said that the mobile unit could not function in the garden (understandably) and then said I had to go into the restaurant and present my card to the bar manager. I had no problem with that however when I arrived at the bar, the bartender told me that he wasn’t set up to take debit cards since he would have to open a new order in the kitchen, he then instructed me to climb two flights of stairs and go in the back office and have a person take my debit card there. At this point, I was very irritated. First I left no tip, and secondly, when I got home I promptly wrote a scathing email to the manager explaining my case and telling him that out of courtesy I was sending this e-mail to them rather than putting it on Trip Advisor or Yelp.


Roy Prevost is a customer service activist and the author of “Turbocharge Your Retail Business” Sign up for his newsletter at www. royprevost.com.

To their credit, I received a very contrite and apologetic email from the general manager with an offer to attend their next function free of charge. Why am I sharing this story? This is a restaurant that has maintained an impeccable standard over the years and they should’ve known better, however, part of their claim to fame is they are constantly promoting the fact that they pride themselves in surpassing the expectations of their customers“ That statement leaves them open to massive abuse and almost certainly guarantees them failure. Why? First, on any given day, you will have customers who are unreasonable and finicky and will do everything in their power to make you eat your words Secondly, you have a business that is run by human beings and as such, are prone to imperfection and foul ups. By stretching the hyperbole, you leave yourselves open to impossible expectations. Probably a more realistic message would begin with, “We strive to…” which allows for constant and never ending improvement on their process of delivering service as well as leaving room for life’s inevitable challenges. Welcome to the era of the ‘Empowered’ consumer There was a time in the not too distant past (preInternet, pre-Google) when a business could exercise reasonable damage control if events went sideways, however, the world has changed and it is critically important that you keep up-to-date on the latest palpitations within the consumer universe called ‘the internet’ Never in the history of commerce has the consumer been as powerful as they are today and all indications are these empowered consumers are flexing

their muscles very aggressively. With the influx of numerous review sites, blogs and social media (to name a few), at any given time a business can be ruined or, at the very least, seriously damaged by dissatisfied customers who take to the internet to vent their displeasure. So what has this to do with customer service? Well, your ability to control your environment will be in direct proportion to the relationship you have developed with your customers. In the example I referred to earlier, the restaurant manager was effusive in his thanks for my having gone to them directly before I put a review on Yelp or Trip Advisor and he gave me a rather generous gift to make up for their challenge. My recommendation is to: 1 Google your company on a regular basis and find out what the world is saying about you. You might be pleasantly surprised. 2 Treat every complaint as a gift and an opportunity. God bless the complainers! 3 Look upon your customer service initiatives as a process and strive to keep on a never ending improvement strategy in our fast changing world

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ATTITUDE IS THE MOST IMPORTANT QUALITY IN SALES ….OR IS IT?

by Russ Mallard, President of Mallard & Mallard Ltd.

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hen I train groups of sales people and managers I love to ask the question: What is more important, your Attitude towards sales, your selling Behaviours or your Selling Techniques? This question is usually followed by a quick show of hands indicating that Attitude is the most important quality. Let me answer this question by providing a brief explanation of our interpretation of Attitude, Behaviour and Technique. Attitude is generally described as a positive or negative outlook towards sales.

to best prepare for the 5k run. The right type of shoe is suggested and information is provided on stretching and nutrition. The increase in your running Behaviour has not only driven your Attitude in the right direction, it has led to a need to learn the right Techniques for running success. The keys to effective Behaviour is to start with clear goals. Knowing what you want will answer the question, “What’s in it for me?” and will keep you motivated on days when your Behaviour plan seems like a steep uphill climb. Break your goals into long term, short term and daily activities.

Technique is generally described as the various tactics and strategies employed by a sales person in pursuit of a sale, such as building rapport and asking questions to determine needs and budget.

Next, build the plan to achieve your goals. Identify what is needed to be done every day and decide how to best execute your plan. Fine tuning the plan will be essential to adjust for variables along the way. Get a tracking system in place to chart your progress. If it is not measured, it is not managed!

Behaviour is the action taken to affect a sale, such as setting a sales goal, creating a sales plan or making appointments with prospects.

Finally, and for some this is the toughest part, you have to take action! This will require a combination of discipline, vitality and guts! Discipline to keep

To illustrate the power of Behaviour, let’s use running as an example. It is January 1st and you have made a New Year’s resolution to get in shape by going for a run every day. New Year’s Day turns out to be a beautiful sunny day and you head out the door for a half an hour run. Upon your return you feel exhilarated. You actually did it! Attitude rocks! However, on the third day of January, the weather turns nasty, and there is a decision to make; stay inside where it is warm and dry or brave the elements? If you run, pride sets in for keeping the resolution going! On the other hand if you stay in, guilt builds and Attitude deflates. Weeks later you are still running every day. Attitude is fantastic as running distance lengthens. A friend suggests signing up for a 5k run and you agree. With more training comes sore muscles and sore feet. To find relief you go to a running store for advice on how 18

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Russ Mallard is an award winning trainer, the president of Mallard & Associates Ltd., Moncton and Fredericton NB and is the authorized licensee for Sandler Training, the global leader in innovative sales and management training. For a free paperback booklet of “Why Salespeople Fail … and What You Can Do About It!” contact Russ Mallard at Sandler Training at Rmallard@sandler.com or call us at 1-888-8547611. www.mallard.sandler.com

doing the Behaviours called for in the plan. Vitality is the energy level that you need to keep going… fitness, nutrition and focus. Guts is the absolute determination to push through your fears to do your Behaviours. We apply these concepts to selling. The more calls made to prospective clients, i.e., increasing sales Behaviour, the more product will sell even if sales skills are not well developed. When product is sold Attitude improves. More sales Behaviour, such as cold calling will drive the need to acquire the sales Techniques necessary to get more appointments, close more sales more quickly and to achieve the maximum price for your products or services. There are many ways to meet new prospects. Cold calling is the one that usually draws the biggest negative reaction as so many salespeople dislike cold calling. However, cold calling is one of the fastest, most direct ways to reach your target customer. The more cold calling Behaviour, the more appointments made, leading to more sales. In turn, there is an improvement in Attitude. To make more sales in less time, new Techniques are required. Behaviour drives Attitude and the need for better Technique! You don’t have to like cold calls, but it is most likely in your best interest to make those calls. If you would like to learn more about how we can help you or your team with Behaviours, Attitudes and Techniques, please give me a call or drop me a note! Good Selling! ©2012 Sandler Training Inc.

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BUILD ON WHAT YOU DO RIGHT by Verne Harnish, CEO of Gazelles

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irst, my public apology to all the companies I’ve misguided over the past twenty-five years, as well as an apology to my employees. And while I’m at it, let me add a public apology to my family and friends. I apologize for dredging up all their problems, for focusing on what is wrong instead of on what is right. I apologize for focusing on the F’s instead of the A’s. I just didn’t know any better until I read a thin 70 page book called the Thin Book of Appreciative Inquiry. Quick summary: Focus on what’s working instead of on what’s not working. Period. Here’s the rub. During quarterly planning and consulting sessions the tendency is to make a list of problems and then spend the bulk of the time discussing these problems and trying to solve them. No wonder people dread the process. This was brought home to me recently when a client

introduced me as his new consultant to some of the people in his accounting department. One of the women quipped “I suppose you’re here to point out everything we’re doing wrong.” Ouch! But an accurate description of the role of most consultants. As a leader of my own firm, I’ve fallen into this same “problem analysis” focus of solving my growth company challenges. And as a father, during a recent teacher-parent conference, I caught myself focusing more on the “B’s” than the “A’s”, even though I now know better these are difficult habits to break. DRIVING REVENUES So what’s the alternative? Let me go back to my latest planning session with the client mentioned above. Their main challenge was driving revenue. Rather than analyze all the reasons why revenues were NOT growing as rapidly as they would like, we took a different tack. Instead, we explored a time when revenues were exploding i.e. when things were going great. Back in 2004, one of their divisions had driven revenues from $2 million to just over $9 million in the span of twelve months. Since then, that division’s revenues have gone flat. So we brought in the head of that division and rather than spend an hour analyzing why revenues had gone flat, instead we asked “what were you doing right in 2004 that caused revenues to explode?” First, the head of the division was getting to relive a positive time rather than hash through a bunch of negatives. More

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Verne is founder and CEO of Gazelles, a global executive education and coaching company, Verne has spent the past 30 years educating entrepreneurial teams.  He’s the author of Mastering the Rockefeller Habits which is endorsed by over 100 CEOs of mid-size companies and is published in ten languages.

importantly, about an hour into the conversation, as we continued to explore what worked in 2004, the head of the division had a major insight. Back in 2004, he was spending about a week a month out in the field visiting with his main distributors and customers. However, after experiencing the sharp jump in revenues, he was sucked into all the challenges of running a much larger operation which had reduced his field time to less than a week every quarter. The minute he said it, the CEO looked at his head of operations, he looked at me, and we all looked at the division head and we knew our answer had been found. We then spent the next hour figuring out how to get some activities off the division head’s plate so he could get back out in the field. Results? When I checked back three months later, though the division head had not yet achieved a week/month of field time, he had managed to get out a lot more than he had been and in the process found a new product that may likely add $10 million in revenue in 2008! Now the company is faced with finding the cash to support the added inventory and again, when explored how they had successfully accomplished this in the past. ANTICIPATING A RECESSION A close entrepreneurial friend of mine had a similar result focusing on appreciative inquire. During his 2nd quarter planning session his team discussed the possibilities of a recession and what they might do to prepare for it. Since their IT services firm had survived the 2001 downturn, they spent the bulk of their time discussing what they did right (or by accident) that helped them survive. What they concluded is that the 30 % in revenue they had from Federal Government contracts had helped them weather the storm. Since 2001, they had ramped up their corporate business to a point where their Federal Government work was now just 10 % of their revenue. Getting the mix back up to 30

% became their strategic focus and they expect to achieve it by the end of the year. TURNAROUND STRATEGIES Another friend who turns around business said he uses a similar process. He simply asks for a graph of the company’s financial performance for the past decade or so, looks for a point where the performance was stellar, and then brings together leaders and employees who were around during that period and spends a couple days inquiring into what the company was doing then that they aren’t doing now. In one recent turnaround, he found seven distinct activities the firm was doing during the boom times that they weren’t doing now and he simply focused the firm on doing those activities again, even though the market and products had shifted over time. Results? Another successful turnaround. FOCUS ON STRENGTHS Marcus Buckingham, the strengths movement guru (Go Put Your Strengths to Work), notes that if you want to help your children with their F’s, ask them about their A’s what did they do to get their A’s, why they like that subject more than the other, what the teacher does, etc. You don’t ignore F’s, but you must study the A’s, not dwell on the F’s, if you have any hope of supporting your child in a positive way. You don’t ignore your problems, but it’s far more productive to study what’s working... The same with your company. You don’t ignore your problems, but it’s far more productive to study what’s working, in your own company or others, as the best way to solve the challenges facing your growing firm.

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WHY USE...

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...AN INSURANCE BROKER?

our broker works for you, not the insurance company. They are at your side when you buy or upgrade your insurance or if you have to make a claim.

Finding a broker who understands your needs is an important first step to being properly insured. Take the time to find someone you feel comfortable with. THE VALUE OF OBJECTIVE ADVICE Insurance brokers are business people whose success rests on your satisfaction with your coverage, price and service. It’s in their interest to understand your needs and negotiate on your behalf for competitive premiums–even if it means approaching several companies to find the right solution. Because your broker doesn’t work for the insurance company, he or she can also assist you with objective advice if you have to make a claim.

FINDING A LICENSED BROKER IS EASY There is a well developed system of broker licensing in Canada so you can feel confident that your licensed broker is a certified professional. One of the best ways to find a broker is to ask family, friends and co-workers for a recommendation. Or, if you have access to the Internet, visit www.nbinsurancebrokers.ca and follow the links to a broker in your community.

GET INFORMED HELP WHEN YOU NEED IT MOST The insurance industry has become more complex with its own language of terms, legal issues and subtle details. You need a knowledgeable expert at every stage of the process to interpret all the rules and what they mean for you. Your broker’s advice can also be invaluable as your insurance needs change and your requirements become more complex.

DON’T BE AFRAID TO ASK! When it comes to insurance, there is no question too basic. If there is anything you don’t understand, don’t be afraid to ask us. We are here to help.

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MINIMIZE YOUR MARKETING RISK

by Doug Daley, VP of Sales & Marketing Kiers Marketing Group, Fredericton, NB

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ost businesses have a yearly advertising/ marketing budget and try to spend it where they will get the maximum return on their investment. This can be risky. If it gets spent in the wrong place, it could hurt the bottom line. For years, marketing experts have been asked where the best place to spend advertising/marketing dollars is. Of course, there is no standard answer because every business has different factors affecting their market. However, there is a proven formula that has worked for numerous Fredericton area businesses and when you think about it, it makes a lot of sense. It is called the 60–30–10 Marketing Rule. If you are not using it, you might want to give it a try. To get started, just break down your target market into these three groups. 1 Existing and previous customers 2 Prospective and interested customers 3 Everybody else Existing and Previous Customers I would venture to guess that this group accounts for 60 – 80% of your sales in the next year. It’s not really a guess because most businesses experience the same thing, customers that have bought from you are far more likely to buy from you again. It is good practice to devote 60% of your marketing budget to this group. Why invest so much in clients you already have? To keep them, that’s why. Think of the lifetime value of a customer that keeps coming back year after year. This group represents your largest profit centre and should be nurtured, not ignored. This is also considered the path of least resistance. The sales process is considerably shortened because they have

already bought from you, know who you are and how you work. Actively marketing to this group also increases the probability that they will refer you to new customers. Prospective and Interested Customers There is a group of people that, at one time or another, have contacted your company looking for information or a quote, opted in to your email list or met you at trade shows or networking functions. These people have not done business with you, but have showed some interest in what you have to offer. 30% of your marketing budget should be spent on this group to get them off the fence to buy from you. Although only 30% of your budget is spent on these prospects, more of your time and effort should be spent on getting these people to buy. This group represents the future growth of your company. Everybody Else The 60-30-10 Marketing Rule says to spend 10% of your advertising/marketing budget on untargeted marketing to everyone not represented in the first two groups. Your ads should be aimed at everyone. Plus, there will even be spillover into the first two groups. The idea is to do a broad sweep across the public to find a few people who will become interested prospects. Some people call it the shotgun approach. The 60-30-10 percentages may not work for all of you, but it is a formula to consider when putting together your next advertising/marketing budget. You may have to tweak the numbers to fit your market, but the concept is sound and has worked for many successful businesses. Doug Daley is Vice President of Sales and Marketing with Kiers Marketing Group in Fredericton. Doug can be reached at ddaley@kiers.com or by visiting www. kiers.com.

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WHO NEEDS... BUSINESS INSURANCE The right insurance is an important tool to protect any business. Let your broker help you plan and arrange the right insurance for your business. Anyone operating a business, whether it’s home-based, a large industrial operation or a professional services office, needs commercial insurance as part of an overall risk management strategy. EVERY BUSINESS HAS UNIQUE REQUIREMENTS Your commercial insurance should be designed to protect against the most prevalent risks to the assets and capital in your business. Your broker can help you itemize and quantify those risks, and determine the level of coverage you should consider. Risks include: Property loss. Insurance against property damage or theft protects the physical assets that support your business including buildings, equipment, vehicle fleets and inventory, as well as intangible assets such as licenses, patents and accounts receivable. To arrange the right level of insurance you must know your rights and obligations as an owner, tenant, leaseholder, landlord or mortgage holder. You must also take into account local bylaws on standards for physical repair and reconstruction. Liability loss. Every business is exposed to liabilities and should be protected against the major ones, including personal injury, product failures or negligence. Personnel loss. Group health and benefits insurance can help to improve employee retention and wellbeing thereby reducing the cost of turnover and lost time. Net income loss. Some businesses are exposed to specific perils that are beyond their control and that would cause critical damage to the viability of the business. For example, a food services operation might insure against a major electrical outage that would result in spoilage of their inventory.

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CONSIDER THE UNDERLYING RISK FACTORS IN YOUR BUSINESS An experienced commercial insurance broker can help you read the risks in your business, advise you on how to reduce some of the more manageable exposures and suggest an insurance mix that takes your risk tolerance and financial situation into account. The following are examples of common risk drivers: • Heavy reliance on limited sources of income • Dependence on one or a few people to run the business • Elaborate and specialized physical assets • Extensive international operations • Sensitivity to factors outside your control, such as weather and commodity prices • Labour unrest • High levels of inventory • Large vehicle fleets • Rudimentary workplace health and safety practices • Dangerous materials handling


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SMALL BUSINESS IS BIG BUSINESS by George L Cooke, CEO, The Dominion

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mall businesses help to keep local economies strong investing in communities and forging partnerships within them. The 2011 Key Small Business Statistics report released by Industry Canada paints a clear picture of small businesses as the backbone of our economy: one million small businesses employ over five million Canadians. In New Brunswick alone, small businesses accounted for 24% of the province’s 2009 GDP – and this number is likely to grow. The cornerstone of all successful small businesses is a network of solid and trusted relationships. Business owners rely on each other to deliver goods and services. The reliability and quality of those goods and services add value to the end product each member of the network offers. As a business owner, having an independent insurance broker as a part of your network is a good investment. A member of your community, and business owners themselves, independent brokers will work to understand your business and ensure you have access to the services and coverage you require. Expanding your network is an important decision. Cain Insurance Services Ltd. understands this and will work with you to choose an insurer that can demonstrate in a real way that they have your best interest at heart. When you insure with The Dominion, you purchase a promise: in your time of need, our company provides the resources of a large company with the mindset of a small one. The Dominion prides itself in being fast to respond with reliable advice and assistance as a member of your trusted network. We understand your individual needs and similar to a small business, we respond with personal service. Small business owners can provide their clients unparalleled access to their staff and to their expertise. We feel the same way about supporting you. But what does this mean? Don’t all insurance companies make the same promises? Here is a recent example of the small business mentality in our service that makes us stand out. In late May, 2012 Thunder Bay, Ontario was hit with devastating rains and flooding. Our claims team was on 26

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site within a day. The following morning at 9:30am The Dominion’s Communications team in Toronto received a message from the Insurance Bureau of Canada (on site in Thunder Bay) letting us know that one of our policyholders needed reassurance and had questions regarding her coverage. The situation in Thunder Bay had been overwhelming for many residents and despite previous conversations with this insured, she needed further support – she got it, quickly. Within the hour the insured had been contacted; by noon a draft was in her hands to provide the certainty she was looking for around coverage. A handful of staff in various roles, scattered across the province, gladly doing their piece to assist - 2.5 hours on a Saturday morning opened and closed the loop. This activity provides distinct contrast to the way that other markets handled this situation, as some still struggled to get on site 5 days after the rains. Tangible proof that when it comes to service size really does matter and that – perhaps - less is more. This is what you get when you choose The Dominion as your insurer: good, capable, clear-minded people, who know how to help, want to be a part of your community, are so very passionate about their work and are committed to assisting every policyholder. As a small business owner, knowing you can count on your network to deliver this level of service is the very definition of peace of mind. Offering this level of service to your clients is an advantage. Your brand is your promise – it is ours too. SMALL OR BIG – REPUTATION IS KING Small businesses in Canada are faced with the challenge of competing with the extensive marketing and advertising budgets of large corporations. But no dollar amount can compete with the value of your reputation. Small businesses now must identify and speak to their ideal client in the areas they live, work and play - In today’s world that means having a positive voice online. Free online listening tools can assist in understanding the needs and issues of the desired client base even before they are your customer. Social media is a way to showcase expertise. Businesses of all sizes that find success on social media engage with their customers, they don’t broadcast. When a company


or a related product or service is mentioned online, a response without selling is key. Once a business is established as the local leading authority in a space, they are trusted and enjoy being top of mind for consumers. The value of “local” should never be underestimated even in this virtual world. Word of mouth campaigns play a large role in decision making – online and offline alike. Satisfied customers will act as the best brand advocates. SMALL IS NIMBLE Small businesses are nimble: with a client-focused strategy you can respond to changing business needs, driven by the local marketplace and your clients. What does excellent customer service from a small business look like? I’ll use insurance brokers as an example. Brokers are equipped with the tools to deliver exceptional, independent service to their clients versus agents or direct writers – they know their clients and they are where their clients need them to be. They are aware of what is happening in the lives of their clients: any event that prompts a change in coverage is anticipated or reacted to quickly. Flexible hours are standard; in the event of a crisis, day or night, a broker is often the policyholders’ first point of contact. Brokers are respected in their community – they are local, independent business people who understand the value of giving back. Brokers are experts on the products they sell. They are able to explain a complex product in simple language and ensure claims are resolved quickly and correctly. No matter the business, respect and loyalty are earned and not purchased – every client interaction is an opportunity to impress.

to mitigate or eliminate the negative consequences of accidental loss. Managing your risks does not need to be difficult but it does need to be thorough.   When developing a risk management plan, consider these 5 things: 1) Identify risks- what can go wrong? 2) Assess risks- what is the probability and impact? 3) Prioritize risks-what risks have the biggest impact; what risks have the least? 4) Call to action - put loss prevention actions in place! 5) Monitor results- are the actions having the desired outcome?  Do you need to make adjustments to the actions you have put in place?   As technology, equipment and circumstances change, your plan needs to be flexible and ready to be adapted.   What are the benefits to you in managing your risks? • Increased productivity and optimized performance • Injury avoidance to workers and the public through improved work place safety • Better asset and expense management • Increased competitive edge • Enhanced reputation and public image • Opportunities for you to increase overall profits! In more and more industries, the perception is that being “small” is a disadvantage; I couldn’t disagree more. In a world where the size of the organization is often invisible to the end consumer, reputation through service is what really matters. In this regard, small businesses have the power to trump the larger ones. At The Dominion, we know you’re different from your neighbour. We have the tools in place to help you protect your immediate business needs - your resources and your assets – but also your reputation, your public image, and the safety of your customers and your employees. Partnered with Cain Insurance, The Dominion is the company you want in your small business network.

FOR SMALL BUSINESSES ALL RISKS ARE BIG RISKS Accidents happen. Big or small, accidents in small business environments can have fiscal impacts that are devastating. As a business owner, you can take steps RISKY BUSINESS MAGAZINE

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DUCKS UNLIMITED Working to protect your wetlands

Corbett Brook Photo Courtesy of Ducks Unlimited

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hen thinking about New Brunswick’s wetlands, it is easy to picture creatures like ducks and other birds, insects, muskrats, and the many animals who call wetlands home. There is, however, one other mammal that does not call wetlands home, but whose life is still greatly improved by the benefits that wetlands provide. This mammal is you. Here in New Brunswick, we go about our day-to-day lives – working, sleeping, shopping, and raising our families. And yet, how much thought do we really put into the most basic necessities of life, and how our environment provides those necessities to us? Nature doesn’t have a marketing department. It can’t take out advertisements saying, “Clean Drinking Water and a Dry Basement: Brought to you by Wetlands™.” It is easy to forget how heavily we depend on these habitats.

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Water quality is a major environmental issue facing us today. It only takes a few days of a summertime “boilwater” order to remind us how lucky we are to have access to fresh and clean drinking water, which wetlands help provide. Wetlands have the amazing ability to remove up to 90 per cent of bacteria from water, and trap up to 70 per cent of sediments from runoff all before the water reaches the pipes that carry it into our homes.

Speaking of water in our homes, in many parts of New Brunswick we know a thing or two about flooding. Floods cause immeasurable damage. They destroy our possessions, create upheaval in our lives, and create an environment where harmful mold and mildew can grow in our homes. Often, spring run-off and heavy rain makes flooding worse. There is simply too much water for the landscape to absorb. When wetlands are lost, so is a natural storage area for water. Wetlands can reduce the risk and severity of flooding by storing excess water and slowing the flow. As more wetlands are lost, there are fewer places for that water to be absorbed, resulting in even more of it winding up in our rivers -and over the banks, into our homes. A lot of people do not fully understand how wetlands benefit us. And sadly, wetlands are paying the price: up to 70 per cent of Canada’s wetlands have been lost or degraded in settled areas of the country.


Ducks Unlimited Canada (DUC) has been working to protect wetlands in this region for many years, and currently protects 18 per cent of the Saint John flood plain area so that it will continue to benefit wildlife and people. DUC has made great strides dealing with beaver issues at Larch Swale, and are now able to control the water levels so that the wetland, the landowners, and the beavers can all coexist. We are also proud of our management and conservation of Corbett Brook Marsh in the University of New Brunswick (UNB) Woodlot. This wetland is highly valued by Fredericton residents for the recreational activities it provides like hiking and bird watching. Our protection of wetlands also goes beyond direct conservation. Our national, award-winning education program, Project Webfoot, has its Atlantic Canada origin in Fredericton. Thanks to our supporters, nearly

800 students from all 13 Fredericton elementary schools have been able to take part in this program, where they learn about wetlands and why they are so important. The program includes a classroom resource kit and a field trip to both Corbett Brook Marsh and the ponds located on the property of the Iris Centre. And of course, there is the Ducks Unlimited Conservation Centre, located at 752 Union Street, Fredericton, where visitors of all ages and from all walks of life can stop by to learn about the wonder of wetlands. New Brunswick’s wetlands are unsung heroes – let’s stand up for them. DUC encourages the public to visit and celebrate a wetland today! For more information, visit www.ducks.ca

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Cain Insurance Risky Business  

Insurance Publication offering risk management and office solutions to New Brunswick businesses.

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