Small Business Month

7 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 - W E d N E S d A y , O c T O B E r 2 3 , 2 0 1 3 Your Entrepreneurial Journey Begins Here EntrepreneurshipManitobaoffers arangeofservicestobusinesses andentrepreneursateverystage ofthebusinesslifecycle,including: � informationonstartingand growingyourbusiness � companyregistrationand searching � businesscounselling � financialprograms � workshopsandseminars Contactustoday: 204-945-8200 tollfree1-855-836-7250 embinfo@gov.mb.ca manitoba.ca/emb By Joel Schlesinger For Postmedia News Calgary - Even before the floodwaters had receded from Vin Room in Calgary's upscale Mission district, its owner was working the phone to get the small business on its feet again. "I come from oil and gas, so there's no such thing as down time," said Phoebe Fung, owner of the popular wine and tapas bar located about three blocks from the Elbow River, which poured over its banks in June. "As the water was coming in, I was phoning tradespeople and ordering the supplies I knew I would need to rebuild." During the historic flood, which forced the evacuation of one- tenth of the city's population, Vin Room Mission was among dozens of businesses inundated by water from the swollen Elbow and Bow rivers that flow through the centre of Calgary. In a matter of hours, the most costly natural disaster in Canada's history wreaked more than $1-billion in damages upon thousands of businesses and homes in Calgary and other southern Alberta communities. The heritage building where Vin Room is located suffered hundreds of thousands of dollars in damage. The basement that housed the wine cellar filled with more than three metres of water. Overland flooding poured through the front door, destroying the original hardwood. "We took everything down to the studs," Fung said. "It was like a brand new rebuild for us." The restaurant was closed for 39 days. If anything was learned from the catastrophe, Fung says, it was the importance of taking matters into her own hands. "We had insurance, but we had the ability to start rebuilding without waiting for the insurance approval." Fung says she used a line of credit to start rebuilding as soon as possible. "If you wait for things that you don't have any control over, you're just adding to the timeline to recovery," she said, noting many businesses in the neighbourhood remain closed to this day. Some may never reopen. For small business owners everywhere, the floods serve as a cautionary tale, says Brent Bushell, the executive director the Business Link, a government-funded non-profit organization providing consultation services to entrepreneurs. "It's so important to be prepared for the worst," he said. "The first thing is to prepare, but that's often easier said than done." He likens disaster planning for small businesses to having a will. Everyone knows it's important, but most people procrastinate. "That same mentality exists when it comes to disaster planning in the small business world," Bushell said. Having a plan involves more than getting insurance for fire, flood and other unexpected catastrophes because it can be weeks before a business owner sees a cheque from the insurer. Meanwhile, an entrepreneur faces three threats to the business's survival. "For one, the revenue that you'd be earning is gone," he said. "Two, your supplies and inventory may be completely destroyed, and the suppliers are still going to want payment." Third, a business needs cash to rebuild, which can be in short supply because there's no revenue. But the proper insurance coverage can help address many of these issues, says Gord Enders, president of the Insurance Brokers Association of Alberta. "Business-interruption insurance can help you cover those expenses." The recent disaster highlights the importance for business owners to take a close look at their coverage and its limitations, Enders says. In particular, they should examine their flood coverage closely, or simply make sure they actually have that coverage. Business flood insurance is an option offered by many but not all insurers, Enders says. Even insurers offering this option are re-evaluating the risk in areas now designated as flood zones. "It depends on what the company's appetite is for risk, but it would be safe to say that at the moment insurance companies are underwriting those risks differently." Fung says she is thankful she had paid the additional premium for flood coverage. Although she had to pay thousands dollars out of pocket, insurance softened the impact significantly. "You're losing tens of thousands of dollars instead of hundreds of thousands of dollars," she said. Yet it took more than insurance and money to reopen, she says. People power played a big part, too. "It was pretty amazing to see the volunteers come down not expecting anything in return," Fung said. "They were essential, giving us a big head-start." Calgary Herald Vin Room owner Phoebe Fung stands in the basement dining room at her Mission restaurant which had to be completely rebuilt after the June floods. Fung had to replace everything including the 100 year-old satur- ated brickwork. Photos by Gavin Young Jim Middlemiss For Financial Post k eith Pickard has seen firsthand the economic boom engulfing the picturesque farming region in Leamington, Ont., thanks to a rapidly growing greenhouse industry. "The work ethic and growth of greenhouse growers, which are mainly family businesses, is second to none," said Pickard, chief operating officer of The Jakait Group, which provides packaging and shipping services to greenhouses. He launched his business in 2005 with three employees and one truck in a rented barn, and revenues that first year hit $650,000. Today, he employs 96 people at peak season and revenues top $25 million. His 15 packaging machines run from six in the morning until two the following morning producing boxes, and his fleet of trucks has expanded to 22 with 85 trailers. Pickard got into the business almost by accident. He was working at a greenhouse that competed with his soon-to-be in-laws. "I wanted to do something that didn't compete with the family." However, he knew the potential of the greenhouse industry and decided to enter the "service side." He hasn't looked back. "The community is very receptive to growth," he said. "The biggest obstacle was winning the trust of the business people." Leamington has jumped into third spot from 33 for cities with populations less than 150,000 in this year's Canadian Federation of Independent Business and Financial Post survey of top entrepreneurial cities. Much of Leamington's growth is attributable to the booming agricultural industry. Ted Mallett, vice-president and chief economist for CFIB who oversees the survey, said the "agri-sector is a kind of seed bed for entrepreneurship. It generates an awful lot of new entrepreneurs." Leamington Mayor John Paterson said "the last few years in this area have been really, really good. Leamington has a long history of greenhouse operations from the small mom-and-pop shops to what we have now." George Gilvesy, general manager of the Ontario Greenhouse Vegetable Growers (OGVG) based in Leamington, said "we have more acres of greenhouses here than anywhere else in Canada or the U.S. Our greenhouse sector is world-class." The numbers are surprising. Of the 224 OGVG members, 85 per cent are located in the Leamington-Kingsville area. OGVG members have 908 hectares of greenhouses around Ontario and expect that to hit 960 ha. by 2014. They grow more than 300 million English cucumbers, 165 million bell peppers and 189 million kilograms of tomatoes. About 70 per cent of this produce is shipped to the United States. Leamington, one of Canada's most southern communities, is a big draw because of the weather and its proximity to the Windsor-Detroit border crossing, about 50 kilometres away. Gilvesy said Leamington has one of the highest levels of sunshine in Canada and the evenings cool down from being on Lake Erie, making it an ideal climate for greenhouses. He also notes that the trend to healthier eating is helping drive growth. Jamie Cornies, a third-generation farmer who grows mini-cucumbers and owns Cornies Farms Ltd., said "the services are here, the suppliers are here, the business concept is here. It works." But these aren't the greenhouses of old. Today, everything is computerized from climate control to watering and they don't use chemical pesticides, but rely on biological pest control. "We use the good bugs to fight the bad bugs," Cornies said. Mayor Paterson said local councillors work hard to expedite building permits and he hopes that by achieving the cluster status it has around greenhouses, Leamington can start attracting supporting industry and further expand its industrial tax base. "There are so many sides of this industry that could cluster right here," he said, from greenhouse manufacturing to automation and the science side of growing, such as biological pest control. One of the big challenges is securing enough energy to drive the growing sector and the area is fighting to obtain its own separate hydro line. Also, while farmland prices soar, Paterson said "in comparison to other areas of Ontario, we're cheap." Agriculture has been Pickard's key to success. Whether it's producing packaging for tomatoes, cucumbers, mushrooms or peppers or even the local commercial fishery, food is at the centre of his business. "It's a very, very good agri-food town." But like any small town, business owners have to prove their mettle and show commitment. "People in our community want to see that you are invested in the community and believe in them by having a presence. These guys want you to become part of the community. They appreciate that and put more faith in you." high WaTer and hard leSSonS: Historic Alberta floods were a devastating blow to small businesses Jamie Cornies is shown in his English cucumber greenhouse. Courtesy of Farm & Food Care Ontario. greenhouSe induSTry SpurS CiTy'S groWTh

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