Small Business Month

S M A L L B U S I N E S S M O N T H - S U P P L E M E N T T O T H E W I N N I P E G F R E E P R E S S - T H U R S D A Y , O C T O B E R 1 8 , 2 0 1 8 4 Cheryl Roney DIRECTOR, LEASING & MARKETING (204) 989-1800 croney@triovest.com cityplace cityplacewinnipeg.com • Retail & Office premises available for lease. • Located in the Sports, Hospitality & Entertainment District (SHED) downtown adjacent and connected via skywalk to True North Square, BellMTS Place, RBC Convention Centre, Portage & Main and The Bay. • Over 15,000 people enter Cityplace each Weekday • 70,000 employees connected via indoor skywalk. • Join tenants: Boston Pizza, CIBC Bank, Shark Club Restaurant & Gaming, PharmaPlus/Rexall, Liquor Mart, Coles Books, Morfit Fitness Centre. Food Court Tenants: Tim Hortons, McDonalds, Subway, A&W, Manchu Wok & Za Pizza Bistro & other medical & professional services. • Enclosed heated parkade & adjacent surface parking & transit. • 24/7 security & on-site maintenance. OPPORTUNITIES FOR LEASE BBB Accreditation Because Trust Matters. bbb.org A well-run family business can be an enduring source of support, wealth and satisfaction. But all too often, conflict undermines not only the company, but family unity. One Winnipeg-based family business managed to overcome this challenge and help get things pointed in the right direction. Magda Zelickson and her family were in a tight spot. Their growing furniture and interior design business, Interior Illusions, was running out of space at its location in downtown Winnipeg. They needed more room to show off their premium sofas, tables and accessories, such as drapes, curtains and blinds. The family-owned store lacked windows and was tucked away in a spot with little street traffic. But Zelickson was nervous about the huge cost of a move, especially in 2012 with the recession still an all-too- recent memory. Arguing in favour of the move were her husband and long-time business partner, Ken Zelickson, and their daughter Michelle Chisick. Michelle had grown up in the store, working there part time as a teen. She joined the company full time after earning a master's degree in interior design. The trio were used to honest and open family discussions about the business. Talking out the move together was what reassured Magda Zelickson it was worth the risk. When the perfect space opened up in a prominent heritage building in Winnipeg's historic Exchange District, the family snatched it up. Sales doubled in two years. The success of Interior Illusions highlights some of the hallmarks of a well-run family business: trust, inclusion of younger generations and a passion for keeping the family legacy going strong. Family-owned enterprises are the backbone of Canada's economy, accounting for four in five of all businesses and employing half the workforce, according to the Canadian Association of Family Enterprise. Yet, just 30 per cent of family businesses survive into the second generation, and only 12 per cent make it to the third, according to a U.S. study. Challenges often include a lack of communication and intergenerational clashes over decision-making and day- to-day management authority, says Bettie Johnston, a senior partner of consulting with the Business Development Bank of Canada (BDC). "Parents often control things and don't want to share information. The younger generations end up lacking the knowledge they need to understand how the business is doing and what's involved in running it," she says. Johnston regularly finds herself called in to advise family businesses that have run into trouble because of a feud. "By the time we get involved, the company is in a lot of financial difficulty," she says. "One of the first questions I ask is: 'Who looks after the financials and how much is shared?' In most cases, a parent does it, and they don't share." She advises family businesses to get younger generations fully involved. "They have the technological knowledge, understand new equipment and are often more open minded about what a company can do." Sharing information is important for building trust and teaching family members how to manage the business. It's also important for younger generations to immerse themselves in the company to learn its ins and outs and earn the trust and respect of parents and key employees. They should especially seek to understand the long hours and commitment of previous generations that led to the company's success. As a test of the younger generation's readiness, she suggests parents take time off and let their children run the business themselves for a couple of weeks. "It's a good experience for everybody, yet it's not going to put the business at risk." At Interior Illusions, the Zelicksons embody many of these lessons. Magda is grateful for her daughter's input. The two go on buying trips together, and Michelle brought a new line of business to the store by offering interior design services. Parents and daughter worked closely together to create a strategic plan and overhaul their website. They hired BDC's advisory service to advise them on both projects and also obtained BDC financing for their move. The Zelicksons are glad to have someone to pass the business on to one day — although not just yet. Having their daughter around has paid off in another way for Magda and her husband. They're finally taking an extended vacation — their longest time away since they founded the business 31 years ago. ❚ FAMILY-OWNED BUSINESSES AN ESSENTIAL PART OF CANADIAN ECONOMY Magda Zelickson, co-owner of Interior Illusions, poses in her store's new Princess Street location. The business has seen an increase in sales since relocating. Photo by Crystal Schick/Winnipeg Free Press BETTER BUSINESS BUREAU BUILDING TRUST IN OUR COMMUNITIES AS A NON-PROFIT INITIATIVE FOR OVER 100 YEARS Core Services Offered To Our Communities • BBB Accreditation – adhere to business standards • BBB Customer reviews – www.bbbreview.us • BBB Dispute Resolution Services - http://bbb.org/h/45 • BBB Ad Standards – Ad reviews to ensure compliancy • BBB Investigations - Marketplace practices that are deceptive, misleading, unethical. Avoid Being Scammed • BBB Business Verification – www.bbbverfy.us • BBB LIVE Scam Tracking – www.bbb.org/scamtracker BBB Foundation LIFT Ethics Certificate – Focusing on Ethical decision making and personal brand. Free participation. • Junior High Students (Participation Certificate) • Senior High Students (Certification) • Post-Secondary Students (Certification) • Businesses Owners, Management and Employees (Certification) • Youth Agencies, Non-profits and Charitable Organizations (Certification and/or Participation Certificates)

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