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CREATIVE DIRECTION AND DESIGN PRODUCED BY EMERGE DESIGNS CONTRIBUTORS PUBLISHER Steve Boulter - Emerge Designs PRINTER Kwik Kopy Design & Print Centre PROJECT MANAGER Wendy Morrell
Chris Johnston Krista Ross Stacey Murray Morgan Peters Lee Corey Dave Armstrong Lieff Salonius Jana Steele Jorge Prudencio
ADVERTISING CONSULTANT Wendy Morrell PRESIDENT Chris Johnston president@frederictonchamber.ca CHIEF EXECUTIVE OFFICER Krista Ross kristar@frederictonchamber.ca MEMBERSHIP DEVELOPMENT & MARKETING MANAGER Christine Little membership@frederictonchamber.ca POLICY & RESEARCH MANAGER Morgan Peters advocacy@frederictonchamber.ca
OPERATIONS & COMMUNICATIONS MANAGER Wendy Morrell fchamber@frederictonchamber.ca EVENT MANAGER Stacey Murray events@frederictonchamber.ca BUSINESS IMMIGRANT MENTORSHIP PROGRAM PROJECT COORDINATOR Janet Moser janetm@frederictonchamber.ca BOOKKEEPER Brianne Phillips bookkeeper@frederictonchamber.ca
Insight is published by Emerge Designs. All content, copyright © 2013, Fredericton Chamber of Commerce. All rights reserved. This publication may not be reproduced, all or in part without written consent from the Fredericton Chamber of Commerce. Every effort has been made to ensure the accuracy of all content in this publication, however, the publisher nor the Fredericton Chamber of Commerce will be held responsible for omissions or errors. Please address all editorial and advertising inquiries to the Fredericton Chamber of Commerce, PO Box 275, 270 Rookwood Avenue, Fredericton, NB, E3B 4Y9, Canada. The Fredericton Chamber of Commerce 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 self-addressed, overnight-delivery return envelope, postage prepaid. The Fredericton Chamber of Commerce will not give, nor rent your name, mailing address, or other contact information to third parties. Printed in Canada. Printed by Kwik Kopy Design & Print Centre. Fredericton Chamber of Commerce PO Box 275, 270 Rookwood Avenue, Fredericton, NB E3B 4Y9 Tel: (506) 458-8006 Fax: (506) 451-1119 Twitter - @fton_chamber fchamber@frederictonchamber.ca Facebook – facebook.com/frederictonchamber www.frederictonchamber.ca
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President’s Message
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CEO’s Message
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Chamber Welcomes New Members
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Advocacy Update
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Corey Nutrition Company Inc.
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Central Valley Adult Learning
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Celebrating the Success of Your Business
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The Spa Club
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Science East
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Member Pro�ile/ Events
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Chamber’s Physician Recruitment Committee Hosts Reception
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Shared Risk Pension Plan
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Women Self Defence & Awarness
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The Chamber Buzz
Assoc. Inc.
68 Kent Street, Fredericton, NB Canada E3A 4Y1 Ph: 506.999.3332 Fax: 506.206.5300 Email: creative@emergedesigns.ca
emergedesigns.ca
Chris Johnston, President
A
s we celebrate small business in this issue of the magazine, it is important to keep in mind that while the businesses may be small, their collective impact on our economy and community is very large. In Canada, SMEs contribute over one quarter of the country’s GDP. In New Brunswick, 97% of businesses have fewer than 50 employees and these businesses employ one third of New Brunswickers . We also feel this impact at the chamber level with nearly 90% of members falling into this category. At the Fredericton Chamber of Commerce, we see our role as providing support to help all of our member businesses stabilize and grow. This is the central mission to all of our benefits and services. For our smaller members, a few chamber benefits can be particularly useful: Health and Dental plan: Being able to tap into the chamber network’s health plan allows small business employers to level the playing field in terms of offering a competitive benefits package to employees. Particularly for small operations, being able to attract and retain the right employees is essential to success. Networking: Several times per month, chamber members are presented with opportunities to make new connections and explore potential partnerships with other like-minded individuals in the community. For small businesses, personal connections can be the difference between surviving and thriving.
business owners and employees need to compete in a variety of areas. Our annual membership survey is particularly useful in identifying the topics that members are most interested in learning. Discounted rates for car rentals, fuel purchases and merchant point-of-sale services: With profit margins often being proportionately tighter for small businesses, being able to save money on needed business expenses on a daily basis can be a difference maker. In October each year, the chamber celebrates small business in a couple of very visible ways. First, our Business Excellence Awards ceremony takes place on October 16th at the Delta Fredericton, where small businesses and entrepreneurs are recognized on an equal basis amongst our larger organizations. Second, Small Business Week is taking place across Canada during the week of October 21st. This year, the chamber, in conjunction with the Human Resources Association of New Brunswick is hosting a forum on one of the most commonly requested topics from our members – human resources practices.
Professional Development: In response to our members’ feedback, the chamber has placed a greater emphasis on providing professional development opportunities over the past few years. From one hour to full day to eight-week sessions, the chamber provides at discounted rates the training that small
Small business is the foundation of our economy on a couple of levels. First, as the statistics above indicate, the sheer number of small businesses and the people they employ are of such a scale that they are irreplaceable. Second, at one time most companies start off as a small business (or perhaps not even a business at all). These companies invariably needed the time to learn and grow and innovate as a small business before expanding. Often, it is organizations like the chamber, or Enterprise Fredericton, or the ACcerl8 Centre that are able to provide the early support that allows these companies to flourish. We need to encourage increasingly more entrepreneurs to take a shot (or two) and start a small business. Who knows where they will end up?
Insight
http://www.ic.gc.ca/eic/site/061.nsf/eng/02713.html http://www.cfib-fcei.ca/english/article/2227-new-brunswick-s-small-business-profile.html
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Sept.- Oct. 2013
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he theme of our magazine this month is “Celebrating Small Business.” In preparing for this message, I began thinking about successful small businesses and about the business owners, managers or entrepreneurs that lead them. My thought was that I would come up with a list of criteria or characteristics that I have seen portrayed by the most successful business owners or leaders that I have encountered.... I thought this would make for an interesting article. The list I came up with, which is by no means complete.... is so broad and lengthy, that it started to make me realize why it is such a challenge to have a very successful small business over the long term. The qualities I listed sound like they describe about five different people. Perhaps that is how we define success in small business... the ability to successfully wear several hats, juggle many balls, and manage everything from our cash flow, to our employees and to our client’s expectations. For 14 years I owned and operated a small business, and early on in my journey someone said to me...”oh you are lucky... when you work for yourself; you only have to work half days”. I recall thinking... ‘I must be doing this all wrong because I’m working a lot more than half days.’ And then they completed their thought.... “whichever 12 hours each day you choose!” So... that adds to the definition of the successful small business person. As we enter autumn, and begin to look forward to Small Business Week in October when we will celebrate the ‘cream of the crop’ of Fredericton businesses, we must all take our hats off to those successful business owners, managers and entrepreneurs.... it is a most challenging occupation! Here is a list of some of the ‘success’ words and phrases I see in successful business people... in no particular order: committed, passionate, dependable, problem solver, dedicated, driven, energetic, optimistic, fearless, analytical thinker, communicator, ambitious, patient, humble, ethical, negotiator, risk taker, innovator, leader, team oriented, credible, visionary, decisive, flexible, consistent, creative, enthusiastic, competitive,
Krista Ross, CEO
networked, articulate, integrity, reasonable, confident, client focused, tenacious, curious, resilient, critical thinker, service oriented, balanced, self-motivated, and organized.
What is interesting about many of these words is that often times successful people will have both sides of a trait – and they have to know when to implement each aspect. Patience can be a great trait for success but... sometimes a successful business person has to be impatient to get the job done! So, in addition to having a huge repertoire of skills and talents, the ability to know when to use them, and to what degree, is paramount as well. And, of course, the ability to ensure that if a skill is missing in your skill set, you hire someone for your team who can contribute that talent.... but.... how to build a team and hire the right people... perhaps that is an article for another edition! I’m sure everyone who reads this article could add many more words and think of many more traits for successful business people - this list was just a starting point. And it helps us to understand just how challenging success can be in small business! So, hats off to our members who are successful business owners, managers, leaders and entrepreneurs! You do an amazing job. And we applaud you.
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New Members
E J Mockler Professional Corporation 495C Prospect Street Fredericton, NB E3B 9M4 Tel: (506) 454-8200 Fax: (506) 454-7300 Email: pete@ejmockler.ca Website: ejmockler.com/en Main Contact: Hazel Howland Legal/Paralegal Ducks Unlimited Canada 752 Union Street Fredericton, NB E3A 3P2 Tel: (506) 458-8848 Email: e_morgan@ducks.ca Website: ducks.ca Main Contact: Eric Morgan Not-For-Profit Organization
Greater Fredericton Social Innovation Inc. PO Box 30069 Fredericton, NB E3B 0H8 Tel: (506) 262-5060 Email: admin@gfsi-isrf.ca Website: gfsi-isrf.ca Main Contact: Diane Morrison Not-for-Profit Organization
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Sept.- Oct. 2013
Hello Newest to our
Syed Waseem Haider 969 Regent Street Fredericton, NB E3B 3Y9 Tel: (506) 472-3991 Email: vaseemhaider@hotmail.com Mentee
DeGante Jewellery 115 York Street Fredericton, NB E3B 3N6 Tel: (506) 260-8810 Email: letygante@hotmail.com Main Contact: Leticia DeGante Retail/Specialty Stores
Rowan McGrath Lawyers 403 Regent Street, Suite 206 Fredericton, NB E3B 3X6 Tel: (506) 451-0657 Fax: (506) 451-8011 Email: admin@rowanmcgrath.ca Website: rowanmcgrath.ca Main Contact: Donald Rowan Legal/Paralegal
House of Stone 115 York Street Fredericton, NB E3B 3N6 Tel: (506) 260-8810 Email: letygante@hotmail.com Main Contact: Leticia DeGante Retail/Specialty Stores
Leticia DeGante Landscaping 115 York Street Fredericton, NB E3B 3N6 Tel: (506) 260-8810 Email: letygante@hotmail.com Main Contact: Leticia DeGante Landscpaing
OKI 145 Bliss Carman Dr Fredericton, NB E3B 9P2 Tel : (506) 460 -8980 Email: Susan.Wade@okidata.com Category: Printer Manufacturer Contact:: Susan Wade
Parto, Ali 29 Abbott Court #306 Fredericton, NB E3B 5V8 Tel: (506) 262-5373 Email: bahramparto@gmail.com
Products & Services: Oki offers a full line of printers: Impact,POS Label,Color, Mono, Multifunciton Products and Managed Print Services Offerings.
New Members
Members Lift Personal Fitness Inc. 520 Smythe Street Fredericton, NB E3B 3E6 Tel: (506) 454-5438 Fax: (506) 454-4592 Email: srobison@liftpersonalfitness.ca Website: liftpersonalfitness.ca Contact: Silas Robison Personal Fitness Gusto Online Marketing 461 King Street, Suite 203 Fredericton, NB E3B 1E5 Tel: (506) 474-2800 Email: andrew@gingerdesign.ca Website: www.gustoweb.ca Contact: Andrew Bedford Marketing Development
Munro Computer Sales & Service 880 Hanwell Road, Suite 303 Fredericton, NB E3B 6A2 Tel: (506) 470-6676 Fax: (506) 635-0619 Email: scott@gomunro.com Website: gomunro.com Email: Scott Hachey Computer Sales/Service
Endeavours Art & Think Play 412 Queen Street Fredericton, NB E3B 1B6 Tel: (506) 455-4278 Email: info@artstuff.ca Website: www.artstuff.ca Main Contact: Luke Randall Retail/Specialty Stores
bēam Inc. Website: www.beaminc.co Email: info@beaminc.co Tel: (506) 442-2258 Contact: Julia Ramirez Marketing, Coaching and Consulting Products & Services: bēam helps small and medium sized businesses that are stuck in the gap of "not enough" and "If I just" that need more sales but don't have enough time or money. Our services cover the strategic part and the implementation, we tell you why, we show you the way and take you as far as you want to go.
Phoenix Petroleum Ltd. PO Box 3057 Station B Fredericton, NB E3A 5G8 Tel: (506) 459-6260 Email: info@phoenixpetro.ca Website: www.phoenixpetro.ca Contact: Kevin Nicklin Petroleum Products
Heavens The Salon 281 Queen Street, Suite 3 Fredericton, NB E3B 1A9 Tel: (506) 450-7007 Email: heavensthesalon@rogers.com Contact: Carol Howe Hair, Esthetics, Services, Supplies
Rebecca Steeves Realty.Com Inc. 795 Hillcrest Drive Fredericton, NB E3A 5K7 Tel: (506) 476-2763 Email: rebeccasteeves@remax.net Contact: Rebecca Steeves Real Estate
Chickadee Larder Gourmet Condiments 17 Hollybrook Street Fredericton, NB E3A 4N8 Tel: (506) 476-0066 Toll Free: (855) 558-0066 Email: stephanie@chickadeelarder.ca Website: www.chickadeelarder.ca Contact: Stephanie Shanks Restaurants, Food & Beverage
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Sept.- Oct. 2013
Advocacy
New Brunswick’s Small Business Investor Tax Credit by Morgan Peters
I
n his 2013 provincial budget speech, Finance Minister Blaine Higgs announced that in lieu of reducing New Brunswick’s small business income tax rate, the Province intended to “...work with stakeholders to explore options to encourage business investment and increase competitiveness by enhancing the existing Small Business Investor Tax Credit.” On 28 May 2013, members of the chamber board of directors met with Finance Department staff to get a better understanding of the program and how it can benefit our members. Below is a brief overview of the program, with full details found here: http://www.gnb.ca/0162/tax/sbitc/smallbusiness-e.asp. Chamber members are encouraged to contact a legal and/or financial professional before applying to the program. Selected Investor Information The program provides a 30% non-refundable personal income tax credit of up to $75,000 per year (i.e. for investments of up to $250,000 per investor). To be eligible for the tax credit, an investment must be made by a minimum of three individuals for a total minimal amount of $10,000 (and a minimum of $1,000 per investor). The credit received may be carried forward seven years or carried back three years. Of note, shares acquired via of an investment under the Small Business Investor Tax Credit (SBITC) program must be held for a minimum of four years. Investors cannot use financial assistance from any government, municipality or public authority in the acquisition of the shares in the business. Selected Corporation Information Businesses from all sectors are eligible to participate in the SBITC program after applying for and receiving a Certificate of Registration. The business must be incorporated and registered to carry on business in New Brunswick and have net tangible assets of less than $40 million. Additionally, the corporation’s assets and income
Insight
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Sept.- Oct. 2013
must all (or substantially all) be used to generate active business income in New Brunswick, with at least 75% of wages and salaries paid to individuals who are residents of the province in each of the four years following the investment. Funds raised through the program must be used as “active business income,” and not for strictly financial purposes (such as lending, purchasing shares of another person, investment outside of New Brunswick, payment of dividends, etc.). Program History and Usage The program began in 2003 with some updates to its criteria in 2007. From statistics gathered earlier in 2013 by department officials, there have been 526 approved applications since the program’s inception – with usage increasing year-over-year. The program has been used in the information and communications technology, professional services and retail sectors most often. This has led to $96.8 million in total investment and $29.1 million in tax credits to individual investors. A challenge for the expanded use and growth of this program are restrictions on publicizing corporate registration in the program due to compliance issues with New Brunswick’s Financial and Consumer Services Commission. The FAQ section from the finance department website above states, in part: “The Government of New Brunswick cannot disclose which businesses/corporations are registered under the Small Business Investor Tax Credit program...In order for a potential investor to determine is a corporation is registered, the potential investor must ask the corporation to see the official Certificate of Registration.” Department Contacts For more details, contact the Department of Finance via phone at (800) 669-7070; email wwwfin@gnb.ca; or visit the website at http://www.gnb.ca/finance.
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Corey Nutrition
Our biggest challenge to date has been the major changes in the aquaculture industry. The fish farming industry grew steadily for almost 25 years in Atlantic Canada. However, by 2006, the industry began to mature rapidly. Consolidation and vertical integration lead to a quick collapse from approximately 70 independent farms in 2006, to just 3 large farms remaining today. Our largest customers were fish farmers so we had to change, or let ourselves be absorbed by a large corporation. By: Lee Corey, President
F
ounded in 1982 by Lee and Jane Corey, Corey Nutrition Company Inc. is an independent family-owned business, manufacturing pet foods, that recently celebrated its 30th anniversary. During the first few years of operation, we simply imported and resold products to the new and rapidly growing aquaculture industry from our home. The first manufacturing facility was built at its current site, on Hodgson Road, in 1984. Since then, the company has grown steadily through reinvestment of profits and constant improvements in technology. The company currently employs 35 individuals.
Guiding Principles to Success
From the very beginning, Corey has manufactured foods based on three guiding principles: 1. Optimum Animal Nutrition 2. Maximum Food Safety 3. Customer Service Excellence This means we always put the animal’s nutritional needs first. Good solid ingredients cost more, and as a consequence, we are seldom the lowest price supplier. We prefer to keep it that way. Food safety is critical to the health of animals, no different than humans. Finally customer service means we are always easy and pleasant to do business with. We ensure our customers receive the products and services they need and expect.
From Aquafeeds to Pet Foods
Over the past 30 years, Corey Nutrition has experienced the typical struggles of small businesses. These include the occasional cash flow issues, slow receivables, learning how to work with a bank, and finding and keeping great people. We’ve had great years and poor years – but that’s what business is, and we continue to grow amid these challenges.
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Sept.- Oct. 2013
The Evolution to Pet Foods
Although we had manufactured our first dog food years earlier, in 2006 we began to invest and diversify into becoming a pet food manufacturer. We quickly discovered that pet food is a very interesting, and a continually growing industry. Market research indicates that 42% of North American households have a dog or cat, or both. The dog population in Canada and USA alone is over 83 million animals. There was real potential there – it was time to act on it. Further, our sophisticated core extrusion equipment could manufacture pet foods at a quality level not matched by most of our pet food competitors, even the biggest names in the industry. Manufacturing pet foods was not going to be a problem for us, and would create the diversification necessary to survive and grow again.
Remaining Competitive
One of the biggest challenges we face today is how to compete in the pet food industry, where our multi-national competitors have enormous marketing budgets, spending millions in advertising alone. We must continue to be nimble and different, by offering innovative, high quality products with just plain good results. We continue to buy local ingredients including wheat, oats and fish oils. We work hard and we make great pet foods. We have expanded our marketing team, and now focus on social media and digital marketing. Investing is key to our success.
Corey Nutrition
Our Products
Our product lines include ProSeries Dog and Cat foods, sold through more than 100 retailers in Atlantic Canada. These include all Global Pet Food stores, Co-Op Country stores, Shur-Gain Feeds ‘N Needs, Pets Unlimited and many independent retailers. We also manufacture Inukshuk Professional Dog Food, created for active and working dogs, sold directly through our headquarters. Partnering with North America’s leading camouflage company, we are also launching an exciting new product line, Realtree® High Performance Dog Food, for sporting dogs, available this fall.
International Markets
Diversification into the pet food industry has also expanded our international presence. We currently export to 20 countries worldwide, including the United States, Russia, Israel, Indonesia, Mexico, Iceland, and New Zealand, to name a few. As our reputation as a quality manufacturer continues to grow and spread, inquiries continue to come in.
The City and Chamber of Commerce continue to be incredibly helpful and supportive. Mayor Woodside has attended company functions and met with incoming foreign buyers, helping solidify our relationship with them. On one occasion, after a delegation from Japan visited our plant, we had dinner on the deck at the Delta Fredericton. After watching the sunset on the St. John River, they exclaimed, “Fredericton was beautiful. We lived in a garden!” How true.
The Future
After 30 years of business, the company is strong financially with deep technical knowledge. We have successfully transformed our company and have begun a new chapter with renewed growth in the pet food industry. Succession is very important to the Corey family business. The Corey kids work in the company throughout the summer months, as they complete their studies. Most of the company’s senior staff has been with Corey Nutrition for more than 20 years. Our knowledge and experience is deep. There is great opportunity in pet foods, and in our city. We look forward to our future as a pet food manufacturer. Corey Pet Foods……… Love in a Bag.
CoreyNutrition.ca
Doing Business in Fredericton
Fredericton is an excellent location for local, national and international business, and has been critical to our growth. It offers easy access to two great, year-round, deep-water ports in Saint John and Halifax, allowing us to quickly ship containers of products very efficiently. (It is actually cheaper to ship a container to the Middle East than to ship by truck to Saskatoon!)
11 Insight Sept.- Oct. 2013
www.cvala.ca,1-855-446-4052, admin@cvala.ca
WWW.CVALA.CA
FREE! Central Valley Adult Lear ning Association Inc.
CVALA’s latest program offering is Financial Literacy. Thanks to a Over half of the adult population in New Brunswick has literacy skills that are considered recently awarded TD SEDI to be below the level that enables them to function adequately at home, at work and in Financial Literacy grant, CVALA will be providing free financial their communities, and to deal with the demands of a knowledge-based economy. literacy programs to the public. This program is mobile and a The Academic Program focuses on Despite the extent of the problem, teacher will travel to any comthere is a general lack of underacademic upgrading to and including munity in York, Sunbury and standing of the literacy challenges the GED level. The GED certificate is Queens Counties to offer this facing New Brunswick. This is widely accepted as a high school training. Classes will run three compounded by the fact that society equivalency. Day and evening classes hours once a week for 4-8 still associates literacy needs with weeks, delivering a comprehenare available. Classes are small, illiteracy, and there is still an unfortubetween 8 – 12 participants, so that sive curriculum covering It is nate stigma attached to personal decision-making and goalteachers have more time to spend important disclosure of reading and writing setting; budgeting; personal one-on-one with each learner. There challenges. There is also a lack of to promote loans; banking; establishing and awareness of the need for and managing credit; saving and adult literacy are flexible attendance options to benefits of improving literacy skills. It as part of investing; and consumer awarmeet the needs of the adults we is important to promote adult literacy eness. serve, so if a learner has a full-time a lifelong as part of a lifelong learning process job, kids at home or other responsilearning Through partnerships with so that literacy development is seen bilities, an individualized learning plan government, employers and process as a positive choice. community and business organiand schedule is customized to meet so that zations, CVALA is working to the learner’s particular needs. The Central Valley Adult Learning Assoliteracy promote and support an ciation Inc. (CVALA) was established development Academic Program covers all five educated, skilled and selfin 2008 to make adult education major subjects required for GED is seen as sufficient workforce enjoying a more accessible in the Capital graduation: reading, writing, math, higher level of income and an a positive Region, and by doing so, to increase science and social studies. improved quality of life. choice. awareness of the importance of The Digital Literacy Program is adult learning for full social inclusion CVALA is always on the lookout designed to provide an introduction and participation, reduce poverty for new opportunities for partto today's highly computerized world nership. If you are an employer, and generate economic prosperity, and enhance the productivity of our and workplace. Classes are held three a CEO or manager or a volunregion’s labour market. teer interested in learning more hours once a week for ten weeks, In order to achieve these ambitious with the program’s teachers travelling about our programs and how goals, CVALA provides free public they might benefit your busithroughout the region to wherever access to quality adult learning ness, workplace or community, there are learners interested in we look forward to meeting you. programs. CVALA currently offers enrolling for the program. Each class Once a classroom site is three programs: academic upgrading consists of eight participants and the confirmed and a group of classes, a digital literacy curriculum, potential learners has been teachers come equipped with a and a new financial literacy course. These programs are delivered to laptop for each person to use during identified, CVALA can have one or more of our programs up and learners in communities throughout the course. The Digital Literacy running in a matter of a few York, Sunbury, and Queens Counties. Program covers a range of topics, weeks.
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Insight 12 Sept.- Oct. 2013
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13 Insight Sept.- Oct. 2013
WWW.CVALA.CA
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It is important to promote adult literacy as part of a lifelong learning process so that literacy development is seen as a positive choice.
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Anna Migchels of Massage2Go and her mentor Donna Gardiner Thompson of Gardiner Realty/Royal LePage celebrating Anna’s graduation from LMI Canada’s Leadership Program.
Insight 14 Sept.- Oct. 2013
Celebrating the Success of Your Business --
Selling Your Shares or the Assets By Dave Armstrong, Senior Manager – Tax, KPMG LLP dearmstrong@kpmg.ca 506-452-8000
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ntrepreneurs exit their businesses at some point; whether to move on to a new venture, stop the daily grind or transition the business to the next generation. Tax considerations are important to keep in mind when navigating a sale. Generally, the sale of a business involves either the corporation selling the assets or the shareholder selling shares of the corporation. The owner will typically prefer to sell the shares if they are qualified small business corporation (“QSBC”) shares (as described below). Conversely, buyers prefer to purchase assets as they can claim a higher level of tax deductions such as depreciation on the amount paid to acquire the assets. The difference between the sale price and the cost of the shares is a capital gain. Generally, you will pay 23.4% tax on a capital gain earned in New Brunswick. Individuals are entitled to a lifetime capital gains exemption of $800,000 on QSBC shares. If your spouse and/or children own shares, the number of exemptions could be multiplied, shielding more of the gain on the share sale from taxation as a family unit. The definition of QSBC shares is complex, but generally the following must apply: • at time of sale, substantially all (90% or more of the value) of the business’ assets must be used principally (more than 50%) in carrying on an active business in Canada or be shares and/or debt in other connected small business corporations; • only you or someone related to you can have owned the shares in the two years prior to the sale; and • for the same prior two years, more than 50% of the corporation’s assets must have been used principally in an active business carried on in Canada or invested in other connected small business corporations.
In an asset sale, the company pays corporate tax on any taxable income arising on the sale, then distributes the after-corporate tax proceeds to its shareholders. This tends to give rise to the seller realizing a tax liability on internally generated goodwill (an asset not currently on the books). A gain from the sale of goodwill is 50% taxable as active business income, which incurs less current tax than a capital gain. Buying goodwill also creates a source of future tax deductions for the purchaser. Where significant goodwill arises in a transaction, it may turn out that an asset sale is more advantageous to the seller even though the capital gains exemption may not be utilized. After the assets are sold, the owner can either liquidate and dissolve the corporation or reinvest in another business or investment portfolio. As a shareholder, the owner would eventually receive the after-corporate tax sales proceeds as dividends from the company. Whether you sell shares or assets, the purchaser likely will ask you to sign a non-competition agreement to protect the value of the business they have purchased. Any payment received for entering this agreement may be fully taxed as regular income. If certain requirements are met and the appropriate elections are filed, the payment may be taxed at a lower rate as a capital gain. These are only a few of the issues you will need to navigate through -- tax and other consequences of selling a business are much more complicated and require professional advice. About the Author Dave Armstrong is Chartered Accountant practicing Canadian Taxation with KPMG Enterprise LLP in Fredericton. Please contact Dave if you have any questions about the sale of your business and if you should be planning today for a future sale. KPMG Enterprise is a network of professionals devoted exclusively to serving the needs of private companies in Canada. For further information about how KPMG Enterprise can help private companies, visit www.kpmg.ca/enterprise.
15 Insight Sept.- Oct. 2013
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elcome to Fredericton’s premier full-service spa experience. Located on Bishop Drive, The Spa Club offers a complete menu of traditional and medical spa services, as well as full-service hair design, reiki and registered massage therapy. Culturally, Canadians are embracing the European practice of self-care as critical to maintaining a healthy, productive lifestyle and a well-developed sense of self-worth at every age. The Spa Club’s comprehensive menu reflects their mission to provide the treatments and therapies integral to self-care and “making the most of what you already have.” From the stress relief of therapeutic or relaxation massages and reiki treatments to the essential pampering from a variety of facials specific to individual skin types and the maintenance of well-groomed hands and feet through regular mani/pedis. The Spa Club can tailor their services to meet individual preferences and exceed expectations with the full spa experience.
Insight 16 Sept.- Oct. 2013
Style is individual, and so are the personalized design services available from the team a The team at the Spa Club’s full-serviced hair studio. The Spa Club’s professional stylists are committed to helping you find the cut, style and products that genuinely work for you, in and out of the salon. “Wrinkled is not what I wanted to be when I grow up” – from acne and other specific problems to changes in skin texture, tone or pigmentation; facial and leg veins, sagging skin on the face and body, “baby belly”, or the lines and wrinkles associated with aging skin the array of readily available and effective treatments is constantly evolving. What fits where? Understanding the choices that address these concerns, such as chemical peels, Botox®, dermal filters, laser and facial and body skin tightening technologies is the job of The Spa Club’s medical director and expert staff. A complimentary consultation is the first step to leaning how you can maintain and restore a clear, more youthful-looking appearance through expert skincare and treatment or specific concerns. In the past decade, laser hair removal has become the number one medical spa service requested in Canada. The Spa Club uses the Soprano® system, widely recognized as the leading technology in hair removal to provide safe, effective results. Certified laser technicians will provide you with a comprehensive, complimentary consultation to ensure laser hair removal is right for you.
Where Science Learning, Youth Engagement and Innovation Meet By: Lieff Salonius
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ext year will mark Science East’s 20th anniversary. Much has changed in the economic landscape of New Brunswick in two decades and Dr. David Desjardins, CEO of Science East, has been part of it as both a scientific innovator himself, and a man passionate about hands-on opportunities that develop the spark of ingenuity. As an experienced industrial chemist working at RPC, he managed R&D and industrial services in areas such as air quality, analytical services, and mineral processing and founded an electrochemistry group which developed a rechargeable lithium battery technology for NBTel and the Department of National Defense. Over 17 years, his work at RPC led to over 17 patents. “My career has been focused on the success of New Brunswick business and industry. I came to appreciate that I could equally contribute to that success by ensuring that our young people are engaged in learning while developing entrepreneurial and innovation skills. I also appreciated the opportunity to build a resource that is valuable to tourism, to families, and to the quality of life for everyone in our province.” He rejects the myth that non-profits are the poor cousins of economic development. Science East expenditures to provide its programs and services in 2013 were $630,000. That represents a social and educational value to over 40,000 people across the province and an associated total economic impact of $1,442,000 representing real jobs and real economic activity. He goes on to explain that “In order to create a culture of innovative thinking, which is vital to the economic development of New Brunswick, we must stimulate youth engagement and foster the “4Cs” – creativity, collaboration, critical thinking and communication– skills crucial to developing people that are inquisitive, able to see the bigger picture, challenge the status quo, and thrive when given the opportunity to collaborate with others to develop new solutions or improvements to new and/or existing processes.” These skills are the focus of programs delivered by Science East educators to families, youth and teachers.
In the last three years alone, Science East has engaged over 320 individuals science, technology, engineering and math (STEM) partners including government, non-profits, businesses and post-secondary institutions across New Brunswick to enrich the content of exhibits, education programs and events as well as providing partners a venue for showcasing careers, tools and new developments in their fields. Science East’s Illuminate! Shedding Light on Science, Technology, Engineering and Math career event/program utilizes its huge network of partners to develop rich experiences for the families, teachers and students in the communities they visit.
By partnering with Science East to provide 21st century skills, schools are provided with a professional gateway to motivation and real-world application. Desjardins sums up the last 30 years of his experience in industry and non-profits when he suggests: “It’s no longer about what you know, but how you learned it and how you can use that knowledge to solve problems or make improvements to processes or products. Those skills can be learned and fostered. Every aspect of science centre activity is focused on developing those critical skills that will fuel future economic activity for our province.” Science East, a charitable, non-profit organization founded in 1994, is a provincial and community resource offering hands-on inquiry programs and services to all New Brunswickers. For more information, visit www.scienceeast.nb.ca.
17 Insight Sept.- Oct. 2013
Events
November 7, 2013 September 12, 2013
October 25, 2013
Business After Hours hosted by the Fredericton Food Bank
HR Forum Details to follow
September 18, 2013
October 29, 2013
Lunch & Learn – Marketing held at Kingswood Lodge
September 19, 2013
Tri-Chamber Event held at the Riverside Resort and Conference Centre
September 20, 2013
Business After Hours hosted by UNB Conference Services
November 13, 2013
Early Bird Networking hosted by Capital Region Community Tennis Centre
November 5, 2013
Making the Perfect Pitch: presentation skills for business success held at the Fredericton Inn
Lunch & Learn held at Kingswood Lodge
November 14, 2013
Access to Capital held at the Wu Conference Centre
November 21, 2013
State of the City Address held at the Fredericton Convention Centre
E-Waste Collection held at Fredericton Exhibition
SPACE FOR LEASE
September 23, 2013
Mastering Sales Solution 8 week session held at the Fredericton Chamber of Commerce
September 24, 2013
Early Bird Networking hosted by Gorham Real Estate / Premiere Executive Suites Fredericton
October 3, 2013
Business After Hours hosted by Priority Personnel Inc.
October 9, 2013
Lunch & Learn – Anti-Spam Legislation held at Kingswood Lodge
October 16, 2013
NEW DEVELOPMENT ON ALISON BOULEVARD
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Business Excellence Awards held at the Delta Fredericton
Insight
FALL 2013
Current tenant: Acklands Grainger QUEBEC ONTARIO ATLANTIC PROVINCES WESTERN CANADA
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Chamber’s Physician Recruitment Committee Hosts Reception for City’s Medical Residents
by Morgan Peters
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n 25 July 2013, the efforts of the chamber’s 2012-13 Physician Recruitment Committee culminated in hosting a welcome reception for the city’s medical residents at the Delta Fredericton. With the support of Horizon Health, the Department of Health and two dozen chamber member businesses, Fredericton’s medical residents were treated to an evening of wine and food pairings selected by local sommelier and chamber board member Doug Williams of the Garrison District Alehouse. The event was attended by nine of the city’s 14 residents and all were appreciative of the reception, which, in addition to the wine and food, was highlighted by a beautiful evening along the Saint John River. Deputy Mayor Stephen Chase brought greetings on behalf of the City of Fredericton, focusing the quality of life that the city can provide its residents. Mr. Chase also spoke about his experience growing up in the city and his choice to remain here through his adult life. John McGarry, CEO of Horizon Health emphasized to the residents that he and other Horizon officials are prepared to work with each individual to find the best fit for them. Mr. McGarry also explicitly stated that billing numbers would not be a hindrance should they decide to practice here or anywhere else in the province. Sara Holyoke, general manager of the Delta Fredericton, told the residents that the city views the Delta as a community hotel, specifically their first-class food and beverage program – which they received a small sample of throughout the evening.
The chamber works closely with other stakeholder groups in its recruitment and primary care advocacy efforts. Over the past year, the chamber and committee have met with the Minister of Health, Ted Flemming, Medical Society CEO Anthony Knight, Horizon CEO John McGarry, other officials from Horizon Health and the Department of Health, as well as doctors, residents and students. Building these relationships is critical to ensuring that our efforts compliment the roles played by government and medical officials. Providing assistance that is outside the scope of our medical partners has been part of the mandate of the committee since its inception. Through our 900 plus membership, the chamber can provide support to make the transition to practicing and living in the city easier for new physicians. The support and response from our membership for such events and activities is a crucial component welcoming physicians to the city and giving them a reason to come and stay.
Established in 2008 as a response to members’ concerns about a growing waitlist for family physicians, the Physician Recruitment Committee works with partners and stakeholders to provide support, information, and a welcoming atmosphere to prospective physicians for the greater Fredericton area. The issue has remained at the forefront since that time - in the chamber’s 2012 annual membership survey, 67.5% of respondents placed “Access to a family physician” amongst their top five “most significant issues currently impacting your business and our community.” These findings were consistent across various industries and size of businesses. Members report that having access to primary care is an issue when trying to attract employees or even new businesses from other provinces or countries.
19 Insight Sept.- Oct. 2013
Pension
by Jana Steele, Partner Osler, Hoskin & Harcourt LLP
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ast year New Brunswick became the first province in Canada to change its laws to allow a new type of pension plan – the shared risk plan. The model was, in part, developed based on the Dutch pension regime, following recommendations made by the Pension Task Force. New Brunswick’s legislation for shared risk plans was designed to permit these plans in both the public and private sectors and in union and non-union workplaces. Shared risk plans can be created anew or an existing defined benefit or defined contribution pension plan may be converted under the laws. As a plan design option, the intent is that these plans may be used in the single or multi-employer plan context. Typically pension plans are either defined benefit (where the benefit at retirement is specified and contributions are made to ensure there are sufficient funds to pay it) or defined contribution (the contribution amounts are specified, but the ultimate benefit at retirement is unknown). These traditional models have been under increasing scrutiny. Defined benefit plans are in some cases unsustainable or unaffordable – people are living longer than had been anticipated, investment returns have been volatile, and interest rates have remained at very low levels for a sustained period of time. On the other hand, defined contribution plans may have retirement saving adequacy issues and don’t have the benefit of pooled longevity risk or, in most cases, pooled investment risk.
Insight Insight 1820 Sept.- Oct. 2013
Shared risk plans, a type of target benefit plan, combine favourable aspects of both defined benefit and defined contribution plans. The contribution amounts to be paid by employees and the employer are set (subject to minor variations in accordance with the funding policy) and the targeted pension benefit for members is also specified. This targeted pension benefit is known as the “base benefit” and is subject to reduction in the future if severe economic conditions warrant it. Under a shared risk plan, there is also a pooling of longevity risk and investment risk, which benefits plan members. A unique aspect of shared risk plans is the requirement for stress testing on the plan in accordance with the laws. The stress testing is done at the outset to set the contribution levels such that there is a strong probability that base benefits will not have to be reduced in the future. At establishment, there must be at least a 97.5% probability that base benefits at the end of each year will not be reduced over a 20-year period. There are also secondary risk management goals that must be attained. Stringent risk management testing is also imposed at other times such as when a permanent benefit change is made. These requirements are designed to help ensure that the targeted benefits can be attained.
Pension
Stress testing is also done each year when the annual funding policy valuation is completed to determine what, if any, actions under the planâ&#x20AC;&#x2122;s funding policy must or can be taken. For example, where a planâ&#x20AC;&#x2122;s funded position is more robust in a year, cost of living adjustments or other benefit enhancements may be granted to members. By contrast, if a plan is less than 100% funded in two consecutive years, restorative actions must be taken, which may include minimal contribution increases by the employer and employees, reductions to ancillary benefits or ultimately, reductions in base benefits for all members. Any benefit reductions must be reversed once the planâ&#x20AC;&#x2122;s funded status improves to the required level. One of the more controversial aspects of the shared risk design is the ability to convert accrued benefits. The legislation contemplates that a defined benefit or a defined contribution plan can be converted and all benefits accrued up to the date of conversion, including retired member benefits, become base benefits under the new shared risk plan. In addition, on conversion of a plan to a shared risk plan, all future cost of living adjustments or indexation becomes conditional on there being sufficient funds in the plan. Inter-generational equity considerations were taken into account with this feature of shared risk plans. That is, the Pension Task Force considered the impact of the plan design changes on all generations of plan members. It was determined that conversion of accrued benefits and conditional COLA for all members were necessary elements of the shared risk design if equity was a key principle.
Shared risk plans also have different administration requirements from traditional designs. The law requires a shared risk plan to be administered by an independent trustee, not for profit corporation or board of trustees. In this way, the administrative function is separate and independent from the plan sponsor or sponsors.
The Pension Task Force worked with the Province and several unions to design the shared risk model with the objectives of sustainability, affordability and benefit security for pension plans in the province. Several plans in the province (in both public and private sectors) have already converted to shared risk. The shared risk design is innovative and attempts to address issues facing defined benefit and defined contribution plans.
21 Insight Sept.- Oct. 2013
DO AS YOU ARE TOLD AND YOU WILL LIVE! Would you know what to do in case of an ATTACK? The numbers state that females between the ages of 16 and 24 years old are the most targeted to be assaulted in some form. This age range just happens to be when many girls attend secondary educational institutions. This is when peer pressure to fit in and alcohol begins to play a larger factor. This is never an excuse for any type of assault. An assault could take place anywhere from your home, to your car, to a house party. Assaults can be committed by a stranger, a friend or even a family member. I do not state these facts to scare anyone but in todayâ&#x20AC;&#x2122;s society, these are the real FACTS. I offer just a few suggestions to anyone who will heed:
Always park your vehicle in a well lit area. Before leaving work, give a call to your home or a friend to let them know you are on your way. If you are out at a social gathering and leave your beverage - buy a new one, a pill can be slipped in without your knowledge. Have a pen in your purse or pocket, this is a great weapon of opportunity to protect yourself against an assailant, always go for the soft tissue areas ie: eyes, throat, and ears. I recommend to all who read this, if the opportunity arrives for you to take a Self Defense and Awareness Course, you should TAKE IT! To be aware of your surroundings and environment is very important to your SURVIVAL. Remember, a self defense course should be based on creating TIME and DISTANCE to enable your escape out of your current situation. Donâ&#x20AC;&#x2122;t become a statistic or a victim. Become a SURVIVOR! For more information about a self defense course offered at Advan Guard Protocol, please check out our website: www.agprotocol.ca.
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22
Sept.- Oct. 2013
The Buzz
, 2013 the Fredericton st On Tuesday, June 25 al Pa hosted the 19th Annu
ce Chamber of Commer icton. There at the Ramada Freder on he Presidents Lunc , who enjoyed a idents in attendance es pr st pa e elv tw re we edericton. Over red by the Ramada Fr te ca ch lun s iou lic de e past ris Johnston asked th lunch, President, Ch amber should Ch e n they felt th tio ec dir ich wh s nt preside ced with. cacy issues we are fa vo ad e th of me so take on idents and ck from our past pres ba ed fe t ea gr d ive We rece d to the year ahead. we are looking forwar
by Stacey
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, July 25, 20 Chamber of 13 the Frederic Commerce’s ton Physician R Committee ecruitment hosted a we lcome rece resident ph ptio ysicians at the Delta Fre n for the city’s a great turn dericton. T out to the e here was vent, with o community ver 60 phys leaders, and ic ians, c hamber boa attendance rd members . Guests we re in treated to w pairings sele ine and foo cted by loca d l sommelier member Do and chambe ug Williams r board of the Garris The residen on District A ts received lehouse. door prizes containing and gift bag items donate s d by nearly members. T two dozen c hanks to all hamber involved for support. their overw helming
st 29, 2013 the FredericGoton lf On Thursday, Auguho sted their 24th Annual
Chamber of Commerce ld out event, od Golf. This was a so Tournament at Kingswo y of golfing, da t golfers enjoyed a grea with 144 golfers! The pr r ou ize and tivities. Thank you to networking and fun ac to our tournament s and a big thank you silent auction donator averbrook Hotel, za Fredericton Lord Be Pla ne ow Cr rs: so on sp try KHJ, al FM / The Fox / Coun pit Ca s, hic ap Gr tal as Co Breweries, tors Ltd., Moosehead ac ntr Co ing ild Bu on Simps Blanchard niti Photography, Rob Ginger Design, inCHfi & Palmer, x Co Delta Fredericton, Photography, Jump+, tion of New ali & Heating, Literacy Co Clowater’s Plumbing urance, urance Ltd., Allstate Ins Brunswick, Wilson Ins Group, Wealth Management Scotia McLeod / Clark , Scotiabank, Comfort Inn Fredericton , Ltd., Office Interiors NB Colpitts Developments and p, ou Gr tus Al ishings Ltd., Hotchkiss Home Furn Anglers. & s ter tfit dericton Ou Fre / . Inc ce an ur Ins y Core next th annual tournament In celebration of our 25 n’t miss do so , mething special year, we’re planning so rly! out book your teams ea
23 Insight Sept.- Oct. 2013
NUMBERS NOT ADDING UP?
OURS DO… SEE WHY WE'RE CANADA'S #1 EMPLOYEE BENEFIT PLAN FOR SMALL BUSINESS. Call Blair or Robyn Corey 458.0102 or Vernon Boyer 452.1891 to tailor a plan suited to your needs. See what the Chamber Plan can do for you! www.chambergroup.ca