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Volume 1 • Issue 1

Equipment Breakdown Insurance

Aviva Canada Engineering & Loss Control Department

The Risk of Making Poor Recruiting Choices Andy Buyting

The 7 Steps to Exceptional Customer Service Roy Prevost

Sales Need Not Be Risky Business Russ Mallard

Not-So-Risky Business William Adams





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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

Equipment Breakdown Insurance 8 - Aviva Canada Engineering & Loss Control Department

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: Website:



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) Natalie Neville (Local) All images sourced from Carle Publishing Inc. or unless otherwise identified.

Ergonomic Tools & Tips - Stuart Blair


Put on a Banker’s Face - Gary Belding


The Risk of Making Poor Recruiting Choices - Andy Buyting


The 7 Steps to Exceptional Customer Service – Roy Prevost


Sales Need Not Be Risky Business – Russ Mallard


Cash Flow - Verne Harnish


Not-So-Risky Business – William Adams


Feature: The Miramichi Salmon Association






TO RISKY BUSINESS! the award, we owe much of our success to our employees who represent Cain Insurance every day and our families who have supported us along the way.


Spring 2012 marks the move to our new location at 401 Bishop Drive. Our 6000 square foot facility will allow us to better serve our customers and staff with features such as expanded meeting rooms and an employee gym. The new construction will also lend itself nicely to our greeninitiatives, such as Fredericton Green Shops certification.

The distribution for this first edition is to businesses in the Fredericton area. Our second edition will see us reaching out to every New Brunswick business.

While you peruse Risky Business you may have questions on some of the topics covered - Please give us a call and we will do our best to help! Our customers have relied on us to provide insurance & risk management advice since 1986, and we look forward to continued growth.

ain Insurance is excited to introduce our Risk Management magazine. You will find in this first edition of Risky Business a number of interesting articles focused on insurance and risk management, as well as some general business topics.

In October 2011, we were honored to have received the Fredericton Chamber of Commerce Aliant Business Person(s) of the Year Award. Regardless of the names on

Enjoy, Dan & Luke

Meet the Cain Insurance Team! Amanda DeLong

Callista Robinson

Darlene Price

Gwen Arbeau

Amanda and her husband have a young son & daughter. They recently moved to the country and love it! She spends her spare time gardening, reading and painting.

Along with her husband and son, Darlene enjoys snowmobiling and 4-wheeling on the trails and boating at Grand Lake.

Jeff Crawford

Jeff is a huge sports fan and plays softball every summer. He’s originally from Perth Andover and is getting married this fall!




Callista is the proud mom of a young son & daughter. She loves to spend her free-time with family & friends.

Gwen enjoys going for walks, watching movies, cooking and spending time with her son & daughter.

Kayla Fearn

Kayla comes from a close-knit family and has three younger sisters. She‘s an avid movie, music and pop culture fan.

Kim Gilmore

Laura Gordon

Leah Shaw

Marlene Price

Melanie Maunder

Michel Bastarache

Nancy McCoy

Natalie Neville

Shayne Prosser

Shelley MacKenzie

Shelley Mills

Sonia Chevalier

Kim and her husband have two children- one graduating from Leo Hayes this year and another attending UNB.

Her two young sons are involved in several extracurricular activities which keep Leah very busy. She loves to read and takes part in a book club in her spare time.

Originally from Nackawic, Melanie is the proud mom of two sons and a daughter who keep her plenty busy in her free time.

Nancy & her husband have been married for 20 years and have two daughters. They love to spend time with family, friends & neighbors and enjoy lots of outdoor activities.

When he’s not at work, Shayne is usually outside on his motorbike, hunting, fishing, or playing sports. He and his wife have a son & daughter that keep them busy as well.

Shelley and her husband have two teenagers, one who is heading off to University this fall. She loves to travel with family & friends

Laura is a proud Maritimer who enjoys country living along the beautiful Nashwaak River. She leads an active lifestyle with her husband and three sons.

Marlene and her husband are very active in their community. They enjoy beekeeping, organic farming, traveling and various volunteer roles.

Michel has called Shediac home for the past 30 years. He has two sons and two granddaughters. You can find him at the camp, fly fishing or out on his ATV on the weekend.

Natalie spends her free-time running, biking, cooking, baking & gardening. She and her husband have lived in the Fredericton area for 12 years.

Shelley loves outdoor activities with her family and spends lots of time at the rink watching her two boys play hockey.

Sonia grew up in Ottawa, Ontario with her two older sisters. She likes to read, run, exercise, cook and spend time with friends.




WHAT’S HAPPENING Harvest for the Hungry

Giving back to the community is a top priority at Cain Insurance Services. We host different events throughout the year to raise money for several causes. In September 2011, we contributed more than 20 cases of soup to the Fredericton Food Bank to kick off their annual Harvest for the Hungry. We continue to collect non-perishable for a monthly donation to the Fredericton Food Bank.

Bell Aliant Business Person(s) of the Year Award

Presented at the Fredericton Chamber of Commerce 2011 Business Excellence Awards Dinner. Dan and Luke Cain received this award for their efforts in building a strong, viable business that plays a significant role in the Fredericton Community.

Going Green!

We have recently committed to reducing our imprint on the environment. We have assembled a team to take charge of reducing waste and excess consumption and commit to using products that demonstrate a sustainability factor. As we move to our new location at 401 Bishop Drive, we will take this initiative to a new level. This building has a controlled environment that maintains temperatures between 18 and 22 degrees. Incentives are in place to encourage employees to bike or car pool to work, as well as to reduce lunch-time waste by providing a full kitchen.




Bowl for Kids’ Sake

In 2011 and 2012 we have assembled two teams to raise money and take part in Big Brother Big Sisters annual fundraiser, Bowl for Kids Sake. It’s a great cause and is a great team-building activity all at the same time! We’re already thinking of new ways to raise funds for 2013.




EQUIPMENT BREAKDOWN INSURANCE By: Aviva Canada Engineering & Loss Control Department


ou already have insurance to protect your business. But is it complete? Your commercial property policy covers the electrical, mechanical and other equipment used in your business against loss or damage due to fire, theft and other events. But your property policy likely doesn’t cover a far more common problem – sudden, accidental equipment breakdown. Today, most businesses use some form of electrical, electronic, mechanical or pressure equipment. Think about the impact on your business if your telephone system or cash registers were to break down. What if there was a problem with your heating and airconditioning unit, refrigerator, or electrical panel? Without equipment breakdown insurance, your business is at risk of absorbing the full impact of costly repairs, replacement and lost income. Secure peace of mind and confidence that your business is well protected with equipment breakdown insurance. This valuable coverage, not automatically included on most basic commercial insurance policies, gives you some of the broadest protection available, including breakdown due to: • electrical arcing • mechanical breakdown • pressure explosion • centrifugal force

This unique coverage can even be built right into your policy, eliminating potential coverage gaps and ensuring you don’t have a separate policy to worry about. Your broker can easily extend your protection to include optional coverage for losses that may result from a breakdown, including: • loss of income, • extra expenses incurred, and • damage caused by spoilage. 8



As a business owner, you want to protect your business from any actions or accidents causing property damage, losses or injury to a third party. Aviva’s Risk Management / Loss Control Department are uniquely equipped to address all your business exposures. Slip and fall, Fleet management, Business continuity, and Building maintenance are just a few of the areas our specialists coast to coast can assist you with to keep your business operating. Whatever the size of your business, effective risk management can save you time and money, as well as protecting your business. Sure, things can go wrong, but with the proper planning, maintenance and prevention measures in place, you can take control of the situation and minimize losses.






echnology is unavoidable in the work place. How you physically interact with these tools can impact how your body feels at the end of the day. If your eyes ache, your lower back hurts, and your wrists and hands throb, you could benefit from some of these ergonomic tools and tips. Back How’s your chair? Does it fit you? When you stand, there is very little pressure on your back, but as soon as you sit down a good deal of the pressure gets transferred from your feet to your seat and lower back. OSHA (Occupational Safety and Health Association) points out that back injuries are among the most common workers’ compensation claims claims that can easily be avoided with a good chair. A good chair or back rest will let you rest your feet comfortably on the floor, provide lumbar support to your hard working lower back, and have arm rests. Making sure the chair you spend hours a day in fits you properly can reduce the aches and pains that you may find when you get out of that chair. How do you sit? It can make a world of difference. Sit like you are royalty with your feet flat on the floor and knees together. Check that you are using good posture, and don’t perch on the edge of your seat. Make sure your back is against the backrest. Be sure that you take the time to move every half hour to stretch your head and neck gently, and shift sitting positions. If you know you have a lot to do at your desk, be sure to take the time to stand up and walk to give your back a break.




by Stuart Blair, Covey Basics

Wrists and Hands Neck, shoulders, wrists, and hands all experience natural tension throughout the work day as you react to stressors. Normal stressors can make an ache turn into a major pain if the tools at your desk aren’t ergonomically sensitive. An easy way to keep your wrists healthy is to keep them in neutral positions (how your hands are naturally when you are standing with your arms at your sides). Find a position for your keyboard where your wrists are straight, to keep them in a neutral range. Ergonomic products like mouse pads, keyboard rests, reduced force staplers and punches all encourage neutral positioning. Electric office tools like pencil sharpeners and staplers can take the pressure off, too. Summary When you sit at your desk, take time to move. Avoid twisting to reach items. Keep the things you need at arm’s reach. At work it’s easy to spend hours a day in the same position, but your body will pay for it later. Take the time to make the most of your workspace and make it work for you.

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.



pecial policies can cover the risks unique to your business. These are just a few of the special coverages available for special situations, your broker can tell you more.

BUSINESS INTERRUPTION This form of insurance provides you with the funds required to protect your business financial position if your operations are interrupted by an insured loss such as a fire. Features and costs will vary considerably depending on whether you insure for named perils, a specific timeframe, specific costs or just a portion of the income you lose. This form of insurance is highly customizable and can include coverage for extra business expenses, rental income lost, gross earnings lost, payroll and professional fees. CONSEQUENTIAL LOSS A consequential loss is not caused directly by damage to property but is a consequence of other damage. For example a cold storage facility might experience significant inventory losses if an on-site transformer station failure cuts out electricity supply or a fire damages the refrigerators. A greenhouse operation or a winery might require constant temperature and humidity to be maintained and would insure against the consequences of an extreme change in those factors. EQUIPMENT BREAKDOWN Many named perils and broad commercial property insurance policies will exclude coverage of breakdown or damage to highly sensitive or specialized equipment including high-pressure boilers, control systems and computers, diagnostic equipment and more. Special machinery policies can be obtained to cover equipment for sudden and accidental breakdown, which is advisable if loss of use is a signifi cant risk for your business.

ERRORS AND OMISSIONS AND DIRECTOR’S AND OFFICER’S LIABILITY It is common practice to protect company directors and senior managers from personal liability for actions that are the responsibility of the company they direct. While insurance does not remove their fiduciary duty, it does provide some financial protection from legal liability for a claim made against them for an alleged or wrongful act. A wrongful act is any error, misstatement, misleading statement, act, omission, breach of duty or neglect allegedly committed or attempted. Errors and omissions insurance is usually used in professional services firms such as law, accounting and consulting to protect professional staff from the impact of errors and omissions in their work. SPECIALIZED COVERAGES There are as many forms of specialized coverage as there are risks to your business. A broker can help you assess the probability of experiencing a loss and determine whether or not you should purchase specialized coverage.Talk to your broker to see if there are risks unique to your business that require extra protection. For example: • Crime – designed to protect against loss of money or securities, including theft overnight or on the way to the bank.This also includes employee dishonesty. • Electronic Data Processing Systems – protects your computer and its data. • Sewer Back-up – covers loss or damage caused by the backing up of sewers, sumps, septic tanks or drains. • By-law Coverage – covers additional expenditures resulting from by-laws regulating construction when reinstating a building after a loss.




PUT ON A BANKER’S FACE Common Mistakes Businesses make when seeking financing

by Gary Belding, Belding Business Solutions


ll too often new entrepreneurs and business owners fail to understand the world of financing when seeking money for a business start up, expansion/modernization, or re-financing. All lenders and investors such as conventional lending institutions (banks and credit unions), public sector support programs and venture capital firms all have their lending and investment criteria. This could include, but not limited to, varied terms and conditions, their respective return on investment, internal policies, and specific industry sector restrictions. The more you understand the more valuable time and costs you can save.

When considering bank financing in very general terms: Mistake Number 1 is being unprepared. You need to know the form of financing that you are seeking, how much, and when the financing is needed. Poor planning and being under a tight time line will not hasten a lending decision. Mistake Number 2 is unrealistic expectations. Lenders want a solid commitment by the business owner(s), including your own investment of at least 20-30%. Seeking and securing a 100% investment is uniquely rare, in business Cash is King. Lenders want a shared risk and shared benefit. Banks are not in the business of doing favours and at the best of times they have a limited sense of adventure. Mistake Number 3 is misunderstanding the 4 C’s of Credit. Character, Credit, Capacity, and Collateral. Most lenders are “formula based lenders” following a rating system based on internal policies. Having a strong personal net worth is very important when starting a small business. When evaluating a larger commercial loan, a lender can be more creative, however the 4 C’s are still used as the basis of determination when granting credit. Traditionally in small business lending, that even though the corporate entity is seeking the financing, the individual owner (s) will still be required to sign personal guarantees, cross guarantees, or provide some form of tangible security in addition to the business assets. There is no hiding behind the corporate vale in lending. Mistake Number 4 is a weak financing proposal. The business owner(s) need to place a lot of thought into the proposal and understand the business inside and out. Most lenders prefer that the owner put together the proposal or at least has worked closely with the




Join Team Parkinson consultant who has been engaged in preparing the business plan and financials. The last thing the lender wants to hear is, “I will have to talk to my accountant or advisor since they prepared the proposal”. The business plan should be easily read, avoid technical terminology, and not the size of a phone book. A business proposal needs to address key information such as the source and use of funds, management strengths, products or services, market opportunity and strategy addressing the competition, historical financials and projections including a detailed cash flow. A business start up is challenging when seeking financing since there is no proven track record to assess. The most challenging is a business refinancing of existing debt, a turnaround scenario, or a company losing money. Traditionally, the business owner(s) are required to cover operating losses in addition to a new equity injection. Sourcing a new lender when the company has experienced losses is extremely difficult. A new lender often interprets this as assuming another lender’s problem. The most viable option is to work with your existing lender and develop a “win win” proposal for the company and the lender. Lenders in today’s economic climate want to build relationships and no longer compete simply on a better rate of interest. A new lender will want all your business, not simply the business loan.

Gary Belding has over 37 years work experience in both the public and private sectors. As both a business owner and a lender, Gary understands the world of financing. Contact Belding Business Financing Solutions at

Looking for a way for your employees to get active and give back to their community? We invite your corporate team to join our winning team and help raise $3 million across Canada.

Join Team Parkinson and register for Parkinson SuperWalk today. To find a walk location in New Brunswick and Maritime region, visit or call Parkinson Society Maritime Region Toll Free: 1-800-663-2468 and ask for Mark. Charitable registration number: 83353 9273 RR0001




THE RISK OF MAKING POOR RECRUITING CHOICES Three Strategies to Increase Your Hiring Success!

by Andy Buyting, Carle Ventures Inc.


iring right is a very difficult challenge for most employers. Business statistics reveal that the success rate for new hires is only 25%! Even seasoned human resource managers, those hired and trained to do this specific task, can expect a successful hiring rate of only 54%. That is, 46% of new hires will fail within 18 months, and technical skills are not the primary reason for that failure. Experts estimate that over 82% of bad hires are as a result of cultural misalignment, or a “bad fit”. With the average cost of mis-hires estimated to be three to five times the annual salary/ wage of any given position, it is simply too costly for small businesses to ignore. The risks associated with hiring the wrong person can have a devastating effect on your company. The challenge is that many recruiting processes are effective at screening for aptitude and skill set, however most do not effectively screen for cultural fit. So how do you address this challenge? Here are three strategies every organization should consider. Strategy #1 – Change your rating process. Rate on productivity AND cultural fit. When assessing candidates for a position, consider a two dimensional scoring system, demonstrated by this graph. Along the X-Axis is a person’s Aptitude & Skill Set (the productivity axis). This is where a manager scores a candidate’s ability to DO the job or not. Do they have 14



the right experience, education, designations, skills, smarts, etc. This is where most interviewing processes focus their attention. However by doing so a hiring manager misses out on the most important criteria for successful hiring and long-term success, Cultural Fit. In order to hire successfully, ALL candidates must also be scored against the Y-Axis. How do they fit into the organization’s culture? Meaning do they live the core values of the company? This is not something that you can assess from a resume. So when scoring a candidate, if they score high in cultural fit, then the challenge becomes what position will play to their strengths? What are they qualified to do? That is how you bring on A-Performers. On the flip side, if they score low on cultural fit, it really doesn’t matter how well they score on productivity. You don’t want them in your organization. In these cases, at best, you’ll have a B-Performer. In the worst case scenario, the candidate with the poor cultural fit will bring down the rest of your team. This is not good for anyone.

So how do you address this? With a systemized approach to recruiting that attracts the “right” people then effectively screen applicants for cultural fit. You want a process that uses cultural screening techniques to help you accomplish this, and it starts with marketing. Strategy #2 – Creating the right marketing message and attract the RIGHT people When you advertise for new recruits, it’s extremely important to have the right message. You must sell your company on your culture (your core values), but then be brutally honest when it comes to the high points and low points of the job. Too often, people respond to a job posting, go through the interview process and are hired to do a different job then the one they applied for. Meaning the realities of the job is not what was represented in the job ad. By writing the right job ad, you can more effectively attract the right kind of applicants and detract the wrong kind. Strategy #3 – Screen for, and consider, cultural fit, NOT ONLY technical knowledge Once you have a good pool of applicants to choose from, with most interview processes, you then proceed to screen through the applications and call in only the top three or four applicants, based solely on their resumes. The problem with this approach is that you may be eliminating the best candidate who ranks #5 in the resume screening. Worst yet, you may end up interviewing three or four well qualified candidates, but none of them fit the culture of your organization. This can be accomplished by meeting more applicants than you normally would. Stop screening through the resumes and only calling in three or four applicants who have the most experience. Instead, screen through the resumes and arrange to meet all the applicants who meet your minimum level of education and experience required.

But what do you do if you don’t have the time to sit through 15 full interviews? Try one of these two approaches; 1. Try conducting a series of Quick Screening Interviews. Line up a small marathon of 15-20 minute interviews where you ask a few basic questions about the applicants past work history and what their interests and career goals are. Best done in person, this process can also be done over the phone or via video conferencing (Skype). 2. Another process is a group interview, where you and one other person from your organization interview 6-8 candidates all at one time. The group interview technique takes approximately 90-minutes and works extremely well as you meet and screen through eight candidates very efficiently and effectively. This is the best process at screening for first impressions, good attitudes, leadership and personality. Only one word of caution, due to confidentiality concerns, this technique cannot always be used, especially when recruiting for professional positions. It is very effective for the restaurant, hospitality and retail industries. By having a systemized approach to recruiting, organizations can increase their 25-50% batting average up to 80% or better within a short period of time. With an increase in successful hiring, a good system saves enormous amounts of time, frustration and the obvious costs associated with employee turnover.

Andy Buyting is the developer of the Hiring Right Recruiting System. Andy works with organizations of all sizes to develop and successfully implement systematic customized recruiting processes. Learn more at




THE 7 STEPS TO EXCEPTIONAL CUSTOMER SERVICE by Roy Prevost, Customer Service Activist

Every company, big or small, dreams of being at the pinnacle of customer service and bemoan the fact that they don’t ‘measure up’. Why? It should not be a mystery. They either drop the ball or weren’t in the ball game to begin with. They don’t “walk their talk”. Most companies do not understand that, for the most part, customer service is the relentless repetition of details that are often ‘behind the scenes’ and give every customer a gasp-worthy experience. And it is not by accident, it is a well choreographed dance routine between your team and your customers Customer service must remain highly focused and unrelenting and the good companies are uncompromising in their pursuit of ‘service’ Before I get into the 7 steps of outrageous customer service, I want to discuss what I call “the elephant in the room”. In the past, we would look upon customer service as that human ‘connection’ we create and nurture with our customers whether it be ‘face to face’ or ‘over the telephone’. Now we are in full engagement within Social Media and surprisingly we will find that our customers want to engage on facebook and twitter thus adding another component to the “Customer Service” strategy within your business. As we become more comfortable with 16



the social media world, I suggest that you may find yourself suggesting to your employees that they spend more time on Facebook engaging in a meaningful conversation and enhancing the ‘customer service’ experience. However, some actions are timeless…. Here are 7 steps to Exceptional Customer Service 1. Setting your personal and company “Core Values” What do you believe in? Does your company reflect your personal core values? You cannot fake ‘caring’ and ‘serving’. If delivering exceptional customer service is not one of your top ten personal values, you are kidding yourself. 2. Non compromise delivery on your core values Once you have identified your personal and your company’s core values, the next step should be obvious. You share them with your team and you have an in-depth discussion as to whether they share the same philosophy as you. This is where the rubber meets the road because if there is some push back from certain members of your team, it could mean they do not fit your culture which brings up a more complicated decision. What do I do now? There is not a lot of wiggle room here. They are either on the team or not. This is the point where you, as an owner/ manager, have to step up to your responsibilities and lead by example because the rest of your valuable team are watching you. Remember; it is all about belief and conviction, and again that cannot be faked 3. Hire attitude and teach skills This is so obvious and yet, I have been guilty of looking at the skills assets of an individual and overlooking their lousy attitude. Meanwhile, I have had to de-hire them for that reason. Go out and find the friendliest, outgoing, people loving professionals you can and then teach them the necessary skills

4. Invest in customer service training Yes, I know, you hire attitude, however, your people need to know such skills as: • How to be professional in their day-to-day work • Where to get education on products • How to handle an angry customer • How to handle an abusive customer

great and how would I want to be treated if I were in the customer’s shoes. I know it sounds obvious but you and I know businesses who never grasp this simple rule, particularly multinational corporations

...To mention a few

7. Maya Angelou has it right “People will forget what you said, they will forget what you did, but they will never forget how you made them feel”

Their need for on-going customer service training is paramount and there are multiple courses and books available to bring your team up to par in the workplace

If you make this mantra a key component of your core values and share this with your team, you will be very successful. I try to live this mantra every day of my life, personally and in my business. How sweet is this!!

5. Understanding the convergence of disciplines This is where your team are duodisciplined. They are customer service professionals as well as sales associates and they are often required to switch hats in mid conversation as they are engaging with your customers. For some members of your team it is a natural intuitive step and they understand their role, however, for others, it may be more difficult and may require some coaching. As an example, suppose a potential customer comes to your store, engages one of your team for a prolonged period of time, then chooses not to purchase, and begins to leave. This is where the team member has the opportunity to give the person a great experience by switching to an ambassadorial/ customer service role for your store and make the customer feel great as they leave your business 6. Common sense rules the day Finally, it often comes down to common sense. Forget all the hoopla! What would make the customer feel

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






f you are in business development or sales, you know how difficult closing the deal can be. You try your best to show all the ways your product or service can benefit the prospect, and he agrees that your solution could solve his problem. You have discussed price, perhaps even cut your price, but the prospect still has not said “yes”, despite your best sales efforts! You leave empty handed, dejected and perhaps even worried that you will not be able to make this month’s quota. Something was amiss with the buyer and you are not sure what it was. You were certain you were going to get the business and when you did not, you wonder why.

by Russ Mallard, President of Mallard & Mallard Ltd. rep sometime results in your humiliating realization that to the disinterested prospect you have become a PEST! This is not what you had in mind when you became a sales rep. To take much of the risk out of the sales process, why not try these simple tips and go for the “no”? After all, if you are going to get a “no”, the earlier the better! • Use a sales process: Do you have a sales process or are you relying on the prospect to call the shots? You need to lead the “Buyer Seller Dance”. • Build trust early: Your process should focus initially on creating the right conditions to do business by adjusting your personality to match that of your prospect. People like people who are like them; they tend to trust people who are like them and; they tend to do business with people they trust. • Don’t leave things to chance: Ask the prospect what she would like to accomplish during the meeting and tell her what you would like to accomplish.

The traditional sales process relies on the sales person to call prospects, to try and secure appointments, present your product or service features and benefits, overcome objections made by the prospect and ultimately try to close the sales. If the sales rep gets a “think it over” and leaves without the sale, then he often goes into chase mode and navigates through voice mail jail and gatekeepers trying to get the sale finished. Ultimately all the hard work of the sales 18



• Explain to the prospect what a “yes” means: Give her permission to tell you “no” if she doesn’t think there is a fit. Tell her that “no” is your second favourite word. It sure beats the uncertainty of a “think it over”! • Resist the temptation to reveal your pricing and product information too early: Only do so if you determine your prospect has a problem or pain you can fix and has the budget to fix it.

• Get the prospect focussed on the costs associated with his problem, not on your price. • If it turns out you can’t provide a solution, tell him and end the meeting: No Pain…No Sale! • If there is problem you can fix, there must be a budget to fix it: The prospect must be both willing and able to pay for the solution. If not, No Money… No Sale! • If you have a qualified prospect: You are good to go with a presentation. At the end of the presentation, be prepared to deal with “buyer’s remorse” before you leave the meeting. Ask your newest customer if anything might cause him to change his mind overnight. If anything comes out, deal with it right away.

Sales does not have to be a risky proposition. Your use of a selling system will greatly reduce your risks of “free consulting”, writing too many proposals and not closing enough business and getting a “no” or “think it over” much later than necessary. Good Selling!

©2012 Sandler Training Inc.

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 or call us at 1-888-854-7611.





12 Ways to Defy the “Entrepreneurial Law” by Verne Harnish, CEO of Gazelles

Growth consumes cash – the first law of entrepreneurial gravity... Get rid of your bank lines – Bill Ritchie, CEO of Think Fun, and his team, focused on cash and reduced what had become a permanent $1.5 million bank line down to zero. Reduce your cash cycle days – PPR Travel changed the color of their invoice to blue and reduced their cash cycle days by 15. Get customers to help fund your growth – Wild Birds Unlimited accomplished this through an innovative Free Birdseed Storage program. Growth consumes cash – the first law of entrepreneurial gravity – yet all three firms mentioned above dramatically improved their cash positions while growing their businesses. Below are 12 ways to reduce your cash cycle. Gather your executive team together for 30 – 60 minutes and brainstorm five ways you can immediately reduce your cash cycle and double your operating cash position within the next 12 months. And how do you know if you’re generating enough cash to grow? How do you calculate a cash cycle? Some areas of opportunity: First, stop saying, “Well, this is just the way it is in our industry.” Have your available cash reported DAILY with a short explanation why it changed the last 24 hours – and chart against A/R and A/P weekly. You’ll learn so much more about your business when you see how the cash is flowing on a daily basis. 20


If you want to be paid sooner, ask. Small firms are finding that large firms (and governments!!) will pay considerably faster or even prepay if you simply ask, ask, ask, ask, and ask some more. Give value back for customers that pay in advance or on time – more below. Get your bills out quicker – hire one more person in accounting to do nothing but make sure invoices are timely and followed-up. Understand why your clients are paying later – many times there are recurring mistakes on the invoice or the invoice is not structured to make it easy for the customer to reconcile. Understand your customers’ payment cycles and time your billings to coincide. Pay many of your own expenses with a credit card so you can play the float and get your own customers to pay by credit card.

“Because we know your invoice is accurate and won’t be a hassle, and we know its blue, we grab it from the middle of the pile and up it on top to be processed first.”


Help your customers improve their cash so they can pay you – offer them leasing options, for instance. Shorten product and service delivery cycle times. All of you have some kind of “work-in-progress.” The quicker you complete projects, the quicker you get paid. Have such a valuable product or service that you have some leverage with your customers to pay sooner.

Of course, improving margins and profit improves cash. The Wild Birds Unlimited story demonstrates how you can give value back to customers for paying in advance. Consistently recognized as one of the best franchises in the country, WBU sells birdseed, feeders, and other suppliers for those interested in birds. Jim Carpenter, the founder, recognized that his customers would love to purchase birdseed in bulk, but didn’t want to haul it or store it. Twice a year he offers his customers the chance to purchase a year’s supply of birdseed at a significant discount, yet he agrees to “store” it for them through his Free Birdseed Storage program. Then every two to four weeks, the customer can come in and pick-up what birdseed they need. Not only does this generate a significant amount of upfront cash, but it creates traffic in the stores – a win/ win/win for everyone. PPR Travel, a leading healthcare placement firm, hired an extra person to make sure invoices were accurate; to call hospitals to proactively find out how they each wanted their invoice structured; and to make follow-up phone calls. In addition, they hit upon the idea to change the color of their invoice from the industry standard white to blue so its noticed in the huge pile of invoices sitting on the accounts payable clerks desk. Dwight Cooper, the CEO, has received lots of anecdotal feedback from hospitals where clerks say “because we know your invoice is accurate and won’t be a hassle, and we know its blue, we grab in from the middle of the pile and up it on top to be processed first.”

As for helping customers improve their cash flow, back when I was selling $100 k energy management systems in college, we worked with a firm to lease the equipment to companies with a monthly payment less than the energy savings we were generating. We received our money the minute the contract was signed and the paperwork reached the leasing firm. The customer actually improved their cash flow because of the net difference between their energy savings and the lease payment. And the leasing firm did a nice business with us. I’ve never found a business that can’t dramatically improve their cash flow. And what it takes to reduce your cash cycle almost always leads to much greater operational excellence and customer service. You don’t have to cheat your customers or suppliers to achieve better cash flow. And with more cash, you sleep much better at night!

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.




With insurance and smart risk management, your business can thrive by William Adams VP, Atlantic Canada, INSURANCE BUREAU OF CANADA This article appeared in Commerce News on January 17, 2011.


he word “risk” is often associated with entrepreneurs − people willing to take a chance and to invest resources with an expectation and hope, but no guarantee, of reward. This is something we see all around us in the New Brunswick business community: individuals who do take the chance to achieve success. What they likely have not left to chance is insuring their business, and their future. In the insurance world, however, risk is another word for “peril” and refers to things that can go wrong. Crime, vandalism, fire, a personal injury lawsuit, a computer virus, equipment breakdown, non-delivery of raw materials, death or illness of a key employee − the list of adverse events that can harm your business is long… and a little scary. But there’s a bright side. Insurance can help share some of this risk burden, so if the unexpected happens, your enterprise is safe. The right type and amount of insurance combined with a solid risk management plan will help your business thrive even if lightning strikes. Getting Started Shop around for a commercial insurance representative who knows your type of business or is willing to invest the time and effort to study it with you. You are familiar with the operation of your company, and your insurance professional should be familiar with cost-effective ways of handling risks. Your insurance representative can also advise you about the various insurance policies available to you, including business income, accounts receivable, commercial general liability (CGL), and directors and officers, to name a few. An insurance professional can help you obtain the right amount and type of insurance and is a valuable asset for your company.




Risk Management 101 Risk management involves identifying and understanding the risks that your business is exposed to. It also means creating and implementing a plan to prevent losses or reduce the impact if a loss occurs. Risk management doesn’t have to be expensive or time-consuming. It may be as uncomplicated as answering these three questions: 1. What can go wrong? 2. What will we do, both to prevent harm from occurring and in response to harm or loss? 3. If something happens, how will we pay for it? Any good risk management plan involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves purchasing insurance to reduce the financial impact of adverse events on an organization when, despite your best efforts, bad things happen.

Consider Your Risks When it comes to developing a risk management plan, “knowing is half the battle.” Knowing and understanding your potential risks can help you prepare in case the worst happens and also help you when you speak to your insurance provider. Some risk exposures are obvious. Other risks, which could be just as serious, can lurk undetected in the background. Ask your insurance representative for a loss-exposure checklist to help make sure you haven’t forgotten anything. For example, if your place of business is rented or leased, you may be responsible to your landlord in the event of fire, explosion, vandalism, water leaks and other perils. And if you own your business premises, you will need insurance to protect your interests as well as those of your mortgage holders. There seems to be almost no upper limit to the size of loss that could result in some areas, such as legal liability. High losses could arise, for example, from defective products or services, or even from a fall by a customer on a wet floor. Another risk to consider is weather-related damage or disruption. Every year, disaster strikes a certain number of businesses in Canada, increasingly due to severe weather like heavy rain, hail or windstorms.

Simple Steps to Take Breaking into a cold sweat imagining all the worstcase scenarios? Relax. For one thing, not all risks are created equal. For example, a home-based business that deals with customers electronically would have very different risk exposure compared to a bus company that transports senior citizens to special events. You might also feel better about risks after you assess the likelihood of each risk and estimate its possible effects and costs to the organization. There are some simple steps you can take right away to help prevent losses, such as leaving some lights on and windows clear of obstructions so that police patrols can view the interior of your business. Another simple step is to ensure your computer files are backed up frequently and copies are stored off premises. More Resources Risk management can seem overwhelming at the start, but help is available. Consult your insurance professional for advice. Insurance Bureau of Canada provides insurance tips and information about risk management on its website at (under the business insurance section), including a Risk Management Process Worksheet and other tools to help you through the planning process. Risk management is a pragmatic process with realworld implications. It’s more than a plan that sits on the shelf − it’s a way of thinking that your whole organization needs to adopt, from the most senior board member to the newest volunteer. With a little effort, and some help from your insurance representative, good risk management will protect your business… and help you sleep at night.






risk management program is the best way to systematically reduce the impact of risk. Your commercial insurance broker has the experience to help you manage the insurance risks in your business.

An experienced commercial broker knows how to identify and manage many of the risk factors in your business and translate that knowledge into a cost-effective risk management program. There are four key steps:

1. KNOW YOUR RISK EXPOSURES The first step is to accurately identify and analyze the risk exposures to your tangible and intangible property, your income, personnel and liabilities.These can be determined in a thorough audit of your office, warehouse or shop floor to identify all perils, probabilities and potential financial consequences.

protection it provides. General and specialized policies can cover just about any peril. Another way to manage risk is to be financially prepared for a loss.

2. CONSIDER THE RISK MANAGEMENT ALTERNATIVES You can save money by scaling down. Insurance is one form of “financing” your risk, but there are other alternatives to explore.

3. IMPLEMENT YOUR PLAN With loss prevention and reduction plans in place, your broker can help you implement your insurance program with one or multiple insurers.

These include eliminating the exposure, loss prevention, loss reduction and contractual transfer of responsibility for losses, for example, when a lessee assumes the liability for damages to leased space. A thorough risk management plan will examine all these alternatives before getting to the issue of insurance. Commercial insurance is the most widely used of all risk financing techniques because of the cost-effective

One way to do this is to accumulate your own capital reserves to cover the loss, but this can tie up large amounts of capital at low rates of return.

4. MONITOR AND ADAPT YOUR PLAN Make sure to adapt your plan to match the changes in your business including geographical expansion, physical growth, new lines of business or increased complexity. Consider an annual review of your needs with the help of your insurance broker.

DON’T JUST MANAGE YOUR INSURANCE, MANAGE YOUR RISK. A bit of planning and an ounce of prevention can save you time and money.









ou may think of Pollution Liability Insurance as something only for large companies dealing with hazardous material, but think again! Here are some examples of claims that may be insured under the right policy. (Courtesy of ENCON Group Inc.) Improperly Installed Valve Causes Heating Oil Spill A heating and plumbing contractor was hired to install a new above ground exterior heating oil tank which was two metres away from the owner’s property line. The technician who installed the tank was inexperienced and installed the wrong type of shutoff valve. When the new tank was filled, hundreds of litres of heating oil leaked out of the valve, down the side of the homeowner’s foundation into shallow soil and fractured bedrock and migrated onto the adjacent third party property. The spill also threatened to impact an adjacent lake 100 metres away. The Ministry of the Environment issued orders against the homeowner to cleanup the spill and remediate the impacts. The homeowner’s insurance company took charge of the cleanup and later subrogated against the heating and plumbing contractor who was liable for the spill. Improper Remediation of Water Damage Led to Growth of Mould A restoration contractor was hired to cleanup and remediate a condominium complex after a water pipe ruptured and caused major water damage to

many suites. Several months after the cleanup was completed, a tenant became ill and had difficulty breathing, allegedly from odours emanating from their suite. Upon investigation by the condominium committee, they discovered that areas of drywall and insulation were wet and covered with toxic mould. A claim was made against the remediation contractor alleging that they created a dangerous environment by failing to remove all water-damaged material, install proper equipment to prohibit high humidity levels, provide proper air circulation and prohibit the growth of mould. The tenant sought to recover costs associated with bodily injury related to her exposure to mould. Oil-fired Portable Furnace Fails Causing Damage to Project and Third Party Property While in the process of constructing a three-storey building, a general contractor placed a portable furnace on the top floor of the structure to heat the building during winter work conditions. The furnace, which was fuelled with heating oil, failed over the weekend and fuel oil was spilled over the two structural concrete floors and down to the basement floor. In addition, the fuel oil spilled onto two open decks, down the sides of the building, into the soil and under a seven-foot-wide footing across one end of the building. The fuel oil also migrated through a storm sewer system and entered the tidal waters of a harbour. There were extensive costs to clean up the site and remediate the third party property. In each case, had the contractor had been insured under ENCON’s Pollution Liability Insurance for Contractors program, they would have had coverage for this type of claim, subject to the policy terms, conditions and exclusions, and subject to the specific circumstances of each claim. These claims examples are reprinted with permission from ENCON Group Inc. For more information, please go to







MIRAMICHI SALMON ASSOCIATION 60 years of salmon conservation

estimated to contribute 20 million dollars annually to the local economy. The Miramichi is known as the “people’s river”, as most New Brunswickers go to this river when they want to angle for salmon.

The Miramichi Salmon Association (MSA) is a charitable salmon conservation group that has been in existence for almost 60 years. Our goal is to work towards the preservation and enhancement of the wild Atlantic salmon and to protect its habitat in the Miramichi watershed. The MSA is supportive of the harvest of smaller salmon called “grilse” by anglers and aboriginal communities, as long as there is a surplus above the spawning requirements available. The MSA promotes the practice of hook-and-release angling with pinched-barb hooks as the salmon you release can continue its journey to the spawning grounds or it may be caught again by another lucky angler at a later date. The Miramichi River has the largest run of Atlantic salmon in North America and is one of the few rivers in New Brunswick that still supports a recreational and aboriginal salmon fishery. Atlantic salmon are a way of life to many people on the river and the recreational salmon fishery on the Miramichi has been 28



supports its activities through fundraising dinners, project grants, membership fees and donations. The MSA also operates the oldest salmon hatchery in Canada, called the Miramichi Salmon Conservation Centre, after the federal government divested most of its salmon hatcheries in the Maritimes in the late 1990’s. Ensuring the health of Atlantic salmon in the river system requires knowledge of the fish that live there. The

When the MSA formed in 1953, its role was primarily to lobby government to protect the Atlantic salmon; however, over the last few decades it has become an essential player in understanding and determining the health of salmon in the river. The MSA

MSA has extensive field and research programs that it conducts independently and/or in collaboration with others to achieve the desired project outcomes. The MSA works to count the number of fry and parr (juvenile salmon) in the river, counts juvenile salmon smolts in spring as they leave the river for the ocean, conducts water temperature monitoring on the river, breaches beaver dams in the fall so adults can access prime spawning habitat, collects adult salmon for spawning at the Miramichi Salmon Conservation Centre and stocks salmon and trout fry in the river. More recently the MSA has partnered with the Atlantic Salmon Federation (ASF) on a research project to track the movements of spring salmon from the river system and back into the ocean. To answer the questions of where the salmon are travelling at sea and where they might be dying, we plan to use new pop-up satellite tags in 2012. Unlike the other tags, these tags are attached externally to the fish and record the location, temperature and

depth the fish are travelling through. The technology is not new, but only recently have the tags been miniaturized enough to be placed on a salmon. The tag stores the data, and at a pre-determined time or if the fish dies, the tag pops off, floats to the surface and the data is transmitted to a satellite and sent to us. One of the issues is that if the fish returns to freshwater, the tag mechanism will not release and the data will not be sent. Therefore, we are asking for the assistance of anglers in returning the black floating tags with a small antenna attached, to us for a cash reward, so we can retrieve the stored data. By investing in research projects such as this, hopefully we will gain more insight into where salmon losses are occurring at sea and be able to sustain future runs of salmon to the Miramichi River. We can’t rely only on governments to take the lead in conservation, research and salmon restoration – we all have to contribute in the ways we can.










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