Small Business | 2015

SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

2015

Small Business Month

View online at winnipegfreepress.com/publications

Small Business Challenge

Small and medium- sized businesses have a massive impact on the Canadian economy. A While it celebrates SMEs and entrepreneurs with BDC Small Business Week during the third week of October each year, the BDC is urging business owners to think big in 2015, with the theme Knock Down Barriers: Dare to Grow. Network, share ideas, tap into the expertise of innovators and learn about the tools and resources that are available to you at special events aimed at celebrating entrepreneurs and increasing their ranks. ccording to the Business Development Bank of Canada (BDC), SMEs represent more than 99% of all companies, and employ the vast majority of private- sector workers. In 1979, BDC business centres in British Columbia’s Lower Fraser Valley pooled their resources to organize a week of activities for entrepreneurs. The events were so successful that the business centres organized a second event in 1980, and BDC Small Business Week was launched across the country in 1981.

Last year, more than 300 events — from luncheons to seminars, conferences and trade fairs — drew participation from more than 10,000 businesspeople nationwide. In Manitoba, events held from Oct. 18 - 24 include the annual Take the LEAP conference in Dauphin, where budding and established entrepreneurs gather to share ideas and experiences and encourage one another to succeed. In Winnipeg, a Small Business SUMMIT hosted by the Winnipeg Chamber of Commerce at RBC Convention Centre Winnipeg on Oct. 22 gives business owners an opportunity to tell Mayor Brian Bowman’s office how the city can foster innovation and development. And anyone with a Twitter account can join the conversation when BDC hosts a Twitter chat on Oct. 22. Entrepreneurship Manitoba and World Trade Centre Winnipeg’s Business InfoCentre offer webinars and seminars year-round, including events aimed at giving would-be entrepreneurs the tools they need to start their own small business. BDC is dedicated exclusively to entrepreneurs. With more than 100 business centres and over 32,000 clients across Canada, it offers loans, investments and advisory services. BDC’s purpose is to support Canadian entrepreneurship with a focus on SMEs. To learn more about the organization’s services and BDC Small Business Week, visit www.bdc.ca. ❚

Knock Down Barriers — Dare to Grow.

Injuries prevented and lives saved that’s the VALUE of SAFEWork safemanitoba.com

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More National Honours for Local IT Firm

Not every business has a dedicated IT staff to design customized networks, perform trouble-shooting tasks and provide simple solutions to complex problems. What every business does have however, is access to those services through Clear Concepts Business Solutions. Recently named Manitoba’s fastest-growing IT Company, Clear Concepts rose to No. 6 in Manitoba and No. 315 nationally on the 2015 PROFIT 500 ranking of Canada’s Fastest-Growing Companies, with five-year revenue growth of 172%. That’s a few steps up from its 2014 ranking of No. 8 in Manitoba and No. 385 nationally. It’s also a clear indication the 14-year-old company is doing something right — make that many things right.

The Clear Concepts team at their head office located at 325 Garry Street in downtown Winnipeg.

Recently, the company won a Gold Medal for Best Mid-Market Solution at the 2015 IT World Canada's CDN (Computer Dealer News) Channel Elite Awards for its role in helping a Manitoba non-profit organization to increase efficiency and productivity. Clear Concepts was also honoured at the national industry awards in 2013. “We were fortunate enough to win the Solution Provider of the Year, which is the most prestigious award given out by CDN. At the same time, we won a Gold Medal for the Small Business Solution of the Year,” Managing Partner Phil Proctor says. The 2013 awards recognized Clear Concepts’ use of state-of-the-art Remote Managed Service (RMS) technology and its partnership with Vancouver Island’s Cowichan Tribe, the developer of a unique community electronic medical records system for First Nations called Mustimuhw (pronounced Moose-tee-mook). Clear Concepts works hand-in-hand with the Cowichan Tribe to provide installation and infrastructure support for Mustimuhw in B.C., Alberta and northern Manitoba. Clear Concepts focuses on small and medium-sized businesses, and non-profit organizations, including First Nations and First Nation’s health care.

“Many of our clients don’t have any IT staff whatsoever, and they depend on us completely,” Proctor says. “If they can’t print, they call us; if the server is down, they call us. Whatever happens, we are their IT staff, and many of our clients love the stability that this kind of relationship provides to them and their organizations. We’ve really become experts at remote problem-solving and part of the reason we’ve become experts is that we have clients that are 3,000 kilometres away” Proctor adds.

Whether you operate your business from Churchill or downtown Winnipeg, Clear Concepts has the right solutions to meet your needs.

The ability to manage networks remotely isn’t just convenient — it allows busy non-profits and businesses to remain productive. For example, if a client has a desktop problem, there’s no need to wait for an onsite service call. A Clear Concepts technician can simply connect with their system, figure out what’s wrong and fix it, often in a matter of minutes. Most new business is the result of referrals from existing clients who have had a positive experience. Proctor says the Clear Concepts process generally begins with an onsite assessment.“Normally, when looking at providing service for a new organization, we would go in, take a look at the environment in order to understand how they are using technology to achieve their goals. With that information we are able to come back and say, ‘OK, these are the recommendations we have to increase productivity.’ Perhaps their network is running slow, or perhaps their software is out of date or maybe they have malware issues. These are the types of things that we would definitely rectify as soon as possible,” he says. Once the network is functioning properly, Clear Concepts ensures systems keep working for their users, so they work efficiently, achieve their goals, and improve productivity. Clear Concepts is fortunate enough to have a wide network of partners and vendors throughout Manitoba, Canada and even North America who specialize in various areas. It has been common practice that Clear Concepts will reach out and involve partners in various environments should they require additional knowledge or opinion, always keeping in mind that recommended solutions must serve clients, staff and vendor partners in equal measure. With 23 staff members at Clear Concepts, Proctor says 15 have technical expertise, and they’re able to help clients embrace technology in a manner that’s not intimidating. “We make sure in our hiring practice that we only consider technicians who are extremely capable of communicating with people who aren’t at the same level they are in terms of technical knowledge,” he says. “That’s a differentiator for us from many other IT companies, and it is really important to us. Our staff are great with people. That’s something that we hear repeatedly from our clients — that even if they’re a computer neophyte they never feel like they’re being talked down to or patronized. They always feel like they’re just being helped.” www.clearconcepts.ca

Clear Concepts partners with the best in the industry

For more information call 204-943-4777 www.clearconcepts.ca

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

Save the Date What’s on the Small Business CalendaR Brandon Chamber of Commerce Small Business Week Luncheon Royal Oak Inn & Suites, Brandon Oct. 21, 11:30 am. - 1 p.m. Michael Legary, co-founder of AssentWorks, and Kerry Stevenson, director for Startup Winnipeg, discuss the inception, partnerships, opportunities and successes of this venture. Cost is $38.50. For information, phone 204-571-5340, email: info@ brandonchamber.ca or visit www.brandonchamber.ca. Entrepreneurship Manitoba For information, phone 204-945-8200, email embinfo@ gov.mb.ca or visit www.entrepreneurshipmanitoba.ca. Managing Your Business Cash Flow — Webinar Oct 21, 10 a.m. - 11 a.m. Register online at www.entrepreneurshipmanitoba.ca. Business Start-up Information Session Oct. 23, 9 a.m. - 10 a.m. Free weekly, drop-in session providing brief overviews of business name registration, the business number, information about PST and GST, online tools and licences and permits. Registration is not required. For information, phone 204-945-8200 (toll-free 1-855-836-7250), email EMBinfo@gov.mb.ca or visit www.entrepreneurshipmanitoba.ca. Winnipeg Chamber of Commerce Ask a Website Expert 250-240 Graham Ave., Winnipeg Oct. 21, 1 p.m. - 4 p.m. Cost is $25. Thirty-minute meetings by appointment only. Working in partnership with Mayor Brian Bowman’s office, the Small Business SUMMIT is a half-day event hosted by the Winnipeg Chamber of Commerce. It will provide a platform for Winnipeg’s small business community to provide input on the conditions they need to succeed. No cost. For information, phone 204-944-8484, email info@winnipeg- chamber.com or visit www.winnipeg-chamber.com. South Chapter Meeting Luxalune Gastropub, 734 Osborne St., Winnipeg Oct. 21, 11:30 a.m. - 1 p.m. Join us to hear Janice Schultz, Manager, Business Centre, Business Development Bank of Canada speak about small business. Networking and lunch (optional). For information, phone 204-944-8484, email info@winnipeg- chamber.com or visit www.winnipeg-chamber.com. Membership Luncheon Small Business SUMMIT RBC Convention Centre Winnipeg Oct. 22, 7:30 a.m.

Starting a small business? Check out these workshops and seminars:

World Trade Centre Winnipeg - Business InfoCentre How to Start a Small Business in Manitoba Old St. Boniface City Hall, 219

Provencher Blvd., Winnipeg Oct. 29, 9:30 a.m. - 11:30 a.m.

Entrepreneurship Manitoba Business Start-up Information Sessions 250-240 Graham Ave., Winnipeg

Presenter Nicole Fontaine, World Trade Centre Winnipeg, covers the basic requirements you need to consider when starting your own business, including: Forms of business organization, legal considerations, licensing requirements, taxation, financing options, home-based businesses and more. There is no cost to attend. For information, visit wtcwinnipeg.ca. Self Employment Resources for People with Disabilities A panel of experts will guide you through the resources and programs available to assist you in starting your own business. Experts include: • Entrepreneurs with Disabilities Program • marketAbilities Program • Employment and Income Assistance • Business InfoCentre (Manitoba) and SquareOne (Saskatchewan) from the Canada Business Network • Entrepreneurship Manitoba • Women’s Enterprise Centre of Manitoba Please let us know at least two weeks in advance if you require sign language interpretation or any disability or Health Conditions Oct. 30, 9:30 a.m. - 11:30 a.m. accommodation to participate in the workshop. This seminar is available for remote participants via webinar. There is no cost to attend. For information, visit wtcwinnipeg.ca.

Weekly, drop-in sessions providing brief overviews of business name registration, the business number, information about PST and GST, online tools and licences and permits. Every Friday, 9 a.m. - 10 a.m. No cost.

For information, phone 204-945-8200 (toll-free 1-855-836-7250), email EMBinfo@gov.mb.ca or visit www.entrepreneurshipmanitoba.ca. Ask the Expert

Book a 30-minute one-on-one meeting with a lawyer, an accountant, an HR professional, a social media expert or a website expert. Consultations cost $25. For schedules, visit www.entrepreneurshipmanitoba.ca/events-seminars. Business Planning Workshops UCN Boardroom, 55 UCN Dr., Thompson Three days, Tuesday, Oct. 27 through Thursday, Oct. 29, 9 a.m. - 4 p.m. daily Millennium Library, Winnipeg Three days, Tuesday, Oct. 27 through Thursday, Oct. 29, 9 a.m. - 4:30 p.m. daily Cost is $60. Register online at entrepreneurshipmanitoba.ca.

Starting or Growing a Business? We Can Help.

Entrepreneurship Manitoba offers a range of services to help new and existing businesses and entrepreneurs, including:

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entrepreneurshipmb.ca 1-855-836-7250 Get answers to your business questions.

with Michael Legary RBC Convention Centre Winnipeg Oct. 22, 11:30 a.m. With Michael Legary, co-founder of AssentWorks. Cost is $49.88 - $99.75. For information, visit www.winnipeg-chamber.com.

Manitoba Tourism Education Council employABILITY EXPO Victoria Inn, Winnipeg Oct. 21, 7:30 a.m. - 3 p.m.

Big savings for your small business. Power Smart * Shops is here to help your small business save with energy efficiency upgrades. Contact us today for FREE energy saving measures and new financial incentives designed for your business.

Keynote breakfast speaker is Mark Wafer, who owns six Tim Hortons locations in Toronto and employs 46 people with disabilities from a workforce of 250 people. Breakout sessions and trade show. Cost is $35 for breakfast and keynote. No cost breakout sessions. For information, visit employabilitymb.com or www.mtec.mb.ca Business Development Bank of Canada (BDC) Twitter chat #SBW2015 Oct. 22, 12 p.m. - 1 p.m. Twitter chats are a great way to stay abreast of entrepreneurship trends, discover best practices, establish relationships with other entrepreneurs and have contact with opinion leaders. Would you like to learn more about the challenges facing Canadian SMEs and the winning strategies for achieving growth? Join our panel of experts on Twitter for an interactive discussion.

*Manitoba Hydro is a licensee of the Trademark and Official Mark.

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

Bringing More Balance and Fairness to the Rates Employers Pay

“We listened to the feedback we gathered, and are using it to help enhance our rate system.”

H aving undertaken extensive consultation with its stakeholders, the Workers Compensation Board of Manitoba (WCB) will be introducing changes to its rate setting model starting in 2016. Consultation with various stakeholder groups started in 2014, and included feedback from stakeholder groups through a call for written submissions, as well as ongoing input and dialogue with a stakeholder advisory group, facilitated by Morneau Shepell. The consultative feedback was reviewed, and improvements were recommended and compiled into a report that is available on the WCB website at wcb.mb.ca > WCB Info > Rate Model Review. Ultimately, the recommendations called for a rate model that offered: • More protection through collective liability, especially for small and medium employers. • Less rate volatility and more stability for employers. • A more balanced focus on prevention and return to work. “We listened to the feedback we gathered, and are using it to help enhance our rate system,” says Winston Maharaj, WCB

President and CEO. “Employers will see changes to the rate model beginning next year that will be phased in over the next five years. These enhancements will help create a more fair and balanced system, and directly address issues brought forward through our consultation process.” One of the features of the new system is that the rates employers pay will not be able to go as high and low as they did in the past. This will enhance shared liability and provide more protection against large rate increases. As well, rates won’t be able to move upwards or downwards in any one year as much as they used to, which will significantly reduce the volatility of employers’ rates from year to year. Further changes will be phased in over the next five years. Employers can expect to receive more information from the WCB in the months ahead. The WCB of Manitoba is a mutual workplace injury and disability insurance agency funded by employer premiums. We are here to insure and support safe and healthy work and workplaces and put workers and employers at the centre of all we do. To learn more about the WCB, visit wcb.mb.ca. ❚

For faster return to health and work, improved safety and because it’s the law. All injuries must be reported to the WCB within five business days – online, by phone, fax or mail. Report Workplace Injuries to the WCB

204-954-4100 | wcb.mb.ca

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

King of the Road Polar Industries connects communities

“This is helping communities — you’re battling elements; you’re going through no man’s land to reach them.”

“Nothing interests me in moving freight between Toronto and Vancouver — to me that’s not exciting,” Kohaykewych says. “This is helping communities — you’re battling elements; you’re going through no man’s land to reach them.” There’s a lot of juice flowing in that company right now. The question is, where does it come from? “I’ve got a lot of drive,” says Kohaykewych. “What motivates me is seeing what my grandparents did on their small farm down in the Sundown-Vita area, how they basically had nothing, and yet they were able to provide for their family. “If my grandfather could do this, then there is no excuse for me!” Kohaykewych was born in East St. Paul and did a stint studying business at university. “During university days, a buddy and myself would travel along the winter roads and hit some of these remote, pristine lakes in Manitoba,” he says. “You would see the trucks driving and it always intrigued me, wondering what these trucks were doing.” Later, working in construction on a project

in St. Theresa Point, he decided to buy his own truck, hire a driver and move his own freight. “I tested the market and saw that there was a very viable business opportunity here.” He ran the business part-time for about two years, and then left his contracting business. The first year, the company moved 19 loads, and last year they were just shy of 700. That kind of growth comes from being clear on what you do and who your clients are, and Kohaykewych says communication is key, especially in the North, where people want to talk face to face. “It’s one thing to sit behind a desk in Winnipeg and it’s another to go up to Thompson or Lynn Lake or South Indian Lake to go and talk to your clients to just visit or buy them lunch and say, ‘Thanks for your business,’ ” he says. “We’re doing a lot right now with the construction companies that are doing work for Manitoba Hydro, and communication is what’s really solidified a lot of the contracts.” Polar Industries has about 26 people on the payroll, with 14 drivers. With the potential for even more work, the company is working with the provincial government on expansion plans. “We want to continue our growth and expand our service to the communities in the Kivalliq

By Wendy King for the Free Press P olar Industries Ltd. was recently ranked 31st in the PROFIT 500 fastest-growing companies in Canada. And that looks pretty darn good when you factor in a staggering five-year revenue growth of 2,416%. Based in Winnipeg with a newly established office in Thompson, Polar Industries moves freight, including lumber, concrete, fuel tanks, pre-manufactured homes and pre-fab oversized commercial buildings and more. “Our business is based on remote northern logistics, so construction companies, mining companies, even the fishing lodges, and the First Nations communities themselves are relying on us to transport goods there in a timely, safe, cost-effective manner,” says founder Mark Kohaykewych, 38. For the fifth year in a row, Polar Industries will be featured on History Channel’s Ice Road Truckers, a show which features truckers as they move vital cargo to remote communities over some of the most dangerous routes in the world.

region,” he says. “I did a presentation on how we want to make an attempt to make a run from Churchill to Arviat this year,” he says. “We would be the first trucks on Hudson Bay in history — ever. I like a challenge, I want to try and expand further to these remote regions and connect them,” he adds. “Connecting communities — that’s what I want to do.” ❚

Polar Industries founder Mark Kohaykewych says it’s more challenging — and more rewarding — to service northern communities that rely on timely, safe and cost-efficient delivery.

Winnipeg: 220 Transport Road | 204.224.0430

Thompson: 11 Knife Crescent | 204.778.7626 polarindustries.ca

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

Follow the Money Improve your cash flow management

C ash flow management can be one of the most complex challenges facing a business owner. That’s because it takes place on several levels at once — everything from accounts receivables and payables to inventory and expense control, to even bigger questions about your business model. “Good cash flow management starts with making financial projections and then closely monitoring your actual financial results,” says Sophie Gauthier, Director, Business Restructuring Unit at the Business Development Bank of Canada (BDC). “To prepare financial projections, you should first think about your plans for the coming year — especially big‑ticket expenditures such as buying equipment or acquiring a business,” she adds. “Based on these plans, you should then come up with a projected income statement, balance sheet and monthly cash flow forecasts.” Consider different scenarios (optimistic, most likely and pessimistic) so you can plan for the impact of each. Your projections should also indicate your financing requirements for the coming year. With those in hand, you can approach your bankers to arrange credit lines or term loans. It’s important to avoid the common mistake of trying to pay for longer‑term assets with your everyday cash. This can lead to a cash shortage if revenues dip or your business keeps growing. You’re better off taking a term loan. “As the year progresses, compare your projections to actual results on a monthly basis in order to understand the cause of variances and react properly,” Gauthier says. “For example, if sales are lower than expected, you could cut expenses, delay discretionary outlays or ask your suppliers for some breathing room.” Investigating the cause of variances will help you zero in on where things are going off the rails and how to get back on track. Poor profit margins can quickly lead to cash flow problems. Entrepreneurs often fail to account for all overhead costs or simply charge too little for their products or services to produce an acceptable level of profit. That’s what happened at Bonté Foods, one of Atlantic Canada’s largest deli‑meat manufacturers. The company had to put in a huge effort to overhaul its cash flow management and restructure operations after running into trouble in 2007. “We learned to watch our cash very carefully,” says Michael Whittaker, President of both Bonté Foods and Trucorp. “We manage our receivables, payables and inventory much more tightly.” The company carefully studied why its cash flow problems had started in the first place. That review led to a restructuring of its operations. “We narrowed our vision to a laser‑like focus on meats, our core competency,” Whittaker says. Realizing its pricing didn’t reflect its higher costs after an expansion and acquisition, Bonté also approached customers to ask for substantially higher prices. Most accepted. The firm also hired an outside consultant to study its operations and help it get leaner. This improved both production efficiency and management of accounts receivable and payable. It also led to adoption of just-in-time inventory management. “The changes spurred a 36% jump in sales and saw the company’s gross profit margin go up by 6%,” Whittaker says, adding the changes also left Bonté ready to handle unexpected difficulties. “Now we’re a healthy company with a bright future.” ❚ 1 Collect receivables as quickly as possible, even if you have to offer customers a small discount. 2 Keep a close eye on your cash flow through the month and compare month‑end and quarterly totals to projections. 3 Use term loans, not working capital or your line of credit, to pay for capital assets such as equipment, machinery or real estate projects. 4 Seek to extend payment terms, but remember it takes two to tango. Work on improving your supplier relationships. 5 Arrange financing ahead of time — not when cash gets tight. To find out more about cash flow management and read real-life entrepreneur stories, download a free copy of BDC’s eBook Master Your Cash Flow: A Guide for Entrepreneurs at www.bdc.ca. steps to better 5 Cash Flow Management

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

From left: Value Partners Investments President Gregg Filmon, COO Paul Lawton, CFO Dean Bjarnarson, and Steve Norton, Director of Research & Sales. Photo by Darcy Finley

Invested in Clients Value Partners Investments is a small company with big ideas

also far more involved in the decision-making process — something that is not the norm at other firms. “Advisers often feel a little bit left out. Decisions are kind of just handed down to them that are going to impact their clients. They’re not involved in the decision-making,” Norton says. “What we’ve done is brought them into that decision-making as owners of the business. We’ll say, ‘We’d like to hire this portfolio manager, what do you think?’ Decisions get made that impact their clients dramatically and we think they should be involved in those decisions.” While the economic downturn of 2008 and ’09 was a tough time for most Canadian investment firms, it proved to be a turning point for VPI, according to Filmon. Many investors felt dissatisfied with the advice they were receiving from their financial advisers and began to turn elsewhere. “While it was a difficult time for more established firms … it was a real opportunity for us to put our stake in the ground and say there is a better way and this is what we stand for and come join us,” says Filmon, adding the company brought in $200 million in new client assets during that time. In fact, the company posted five-year revenue growth of 258% from 2009 - 2014 — a feat that earned VPI a spot on the 2015 PROFIT 500 Ranking of Canada’s Fastest-Growing Companies. Filmon and Norton say there is still plenty of room for growth for VPI, which is in the first year of a five-year plan that calls for the company to bring on 20 new shareholder advisers each year and double the company’s assets by 2019. “I would characterize us as a small company with big ideas,” Norton says. ❚

By Jim Timlick for the Free Press W hen Value Partners Investments (VPI) opened for business nearly 10 years ago, it didn’t have a single client or any revenue — but it did have some big ideas. Today, the Winnipeg-based investment company manages about $1.6 billion in assets for investors and has positioned itself as a major player in mutual funds management. VPI president Gregg Filmon says a key to the company’s success has been its focus on creating a more positive experience for clients. Rather than inundate them with hundreds of different choices in mutual funds, VPI focuses on a handful of products that the company believes will allow clients to be successful in planning for the future. “Some companies are not really focused on the client, they’re focused on selling a product to a salesperson, who then turns it around and sells it to the client. It’s all about gathering assets. If the client makes money, great; if not, so be it,” Filmon says. “We’ve stepped back and said we don’t think that model works very well. Everything we’ve done has been an attempt to say … how do we build a model that is set up to help our clients have a better experience?” Value Partners is structured differently than most investment firms. It is one of Canada’s few adviser-owned mutual fund companies. That means its owners invest their own money alongside that of their clients. Steve Norton, VPI director of research and sales, says this approach has been crucial to the company’s success. Not only has it made advisers more personally invested in the success of the company and its clients, they are

“Everything we’ve done has been an attempt to say … how do we build a model that is set up to help our clients have a better experience?”

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SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

A n advisory board may be the best kept secret for improving your business. A study conducted by the Business Development Bank of Canada (BDC) found that advisory boards produce huge benefits for small and medium‑sized businesses. As part of the study, BDC commissioned a survey of business owners about their experience with advisory boards. Most entrepreneurs (86%) who have an advisory board said it has had “a big impact” on the success of their company. BDC also asked Statistics Canada to analyze a sample of 3,900 BDC clients. The findings were clear and consistent. In the first three years after an advisory board was set up, companies experienced stronger sales growth (66.8%, compared with growth of 22.9% in the three previous years) and stronger productivity growth (an average of 5.9%, compared with 3.2% in the previous three‑year period). One company that has enjoyed important benefits from having an advisory board is Steelworks Design, run by Donald and Rhonda Barnet. In 2008-2009, the recession cost Steelworks half its sales for the custom machinery it designs and manufactures in Peterborough, Ont. The Barnets found themselves in a desperate fight to save their business. Yet, they resisted what would be the first staff layoffs in the company’s history. “We’re a small family business with friendships and relationships inside the company,” Rhonda Barnet says. “It was so difficult.” The Barnets’ advisory board challenged them to look at the situation and take decisive action. All three members of the board had experience as senior executives at other companies. “I was very, very emotional,” Rhonda says. “But if we didn’t make those decisions, everybody’s job was in jeopardy. The advisory board gave us the courage and the strength to go ahead.” The Barnets ended up laying off half the 18 people then working at the company. Steelworks survived and is now on an impressive growth trajectory, almost doubling sales in the last two years to $2.2 million. The staff now numbers 22, including 10 engineers. The advisory board has proved to be a continuing source of invaluable advice. It has counselled the Barnets on their efforts to diversify their business away from the auto industry. It also helped them improve their financial management and even shop for a new bank. “I think it’s one of the most valuable tools an entrepreneur could use,” says Rhonda, who was first introduced to the idea of an advisory board by a lawyer for the company, who helped her find a pair of local senior executives. Barnet’s mentor — her boss in a former job — rounded out the line‑up. The board agreed to meet quarterly with the Barnets free of charge for half a day. The group would review elements of the company’s strategic plan, including business development, financial management and human resources issues. Steelworks creates custom machinery for a diverse list of customers including General Electric, Hitachi, Siemens, Rolls‑Royce and PepsiCo. Exports make up about 30% of its sales and Barnet believes the company could grow to $10 million in sales in the coming years. An advisory board will be a big part of making that happen. “If we hadn’t initiated a board and grown in this way, we probably would have been a $1 million company forever, a Ma and Pa shop,” she says. “That’s not where we’re going.” ❚ Build a Brain Trust Grow a stronger business with an advisory board

Advisory board tips for entrepreneurs

• Seek out members with skills that complement your own and who have a genuine interest in your business’s success. • Look for members who are independent so you can get advice that’s not coloured by personal interests. • Keep an open mind to the differing perspectives of members and any challenges to your point of view.

Download the BDC study Advisory Boards: An Untapped Resource for Business at www.bdc.ca.

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Got a great idea for a new business? I nnovate Manitoba invites entrepreneurs to apply for a spot at Pitch Day, at RBC Convention Centre Winnipeg on Nov. 18. Past participants in the annual event have attracted local, national and international attention, as well as startup capital. Prizes awarded at the end of Pitch Day include $7,500 for first place, $2,500 for second place, $1,000 for the people’s choice pitch and $500 each for best student, researcher, technology and social innovation pitches. As well, all the winners receive free entry to Innovate Manitoba’s Launch Pad Startup Skills Workshop. The application deadline is Nov. 9 and a preliminary round held Nov. 12 at Red River College will narrow the field to 15 finalists, who will make two-minute pitches to a panel of judges and an audience of local entrepreneurs and innovators on Nov. 18. Registration fees apply. The panel of expert judges includes Winnipeg Free Press business reporter Martin Cash, Manitoba Harvest Hemp Foods CEO and co-founder Mike Fata and Payworks president and CEO Barb Gamey. For information about Pitch Day and other Innovate Manitoba initiatives, visit www. innovatemanitoba.com. ❚

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AT YOUR SERVICE Westoba Credit Union builds community, one Member at a time.

You can count on Westoba Credit Union to take good care of all your personal and business financial needs. With 21 locations across the province, Manitoba’s fifth largest credit union delivers all the financial services you expect from any major bank, along with something you might not expect — a commitment to putting people first, says financial services representative James Grosskopf.

Westoba staff always work closely with members to accommodate their needs, he adds. “We do truly want to build relationships with all of our members where there is that one-on-one contact,” he says.“Once one of our team establishes a working relationship with a member, they have our direct phone access. If we do not answer the phone immediately, we strive to return the call within two hours or at the latest by the end of the business day.” For added convenience, Bray often meets busy commercial members in their own place of business.

“…the most important personal service we offer is simply advice.” James Grosskopf, Financial Services Representative,Winnipeg

“In my opinion, the most important personal service we offer is simply advice. We treat every member as a human being as opposed to an account number. Every one of life’s events has a financial implication to our members, and it’s our job to recommend ways we can help them,” Grosskopf says. “We’re trained to give EDGE ( everyone delivering great solutions and e xperiences) by listening, asking better questions and delivering the best personalized solutions seamlessly.We truly value our members and want to build life-long relationships with them throughout their various needs.” Senior financial planner Joanne Conan says Westoba truly lives up to its mission to enrich lives and communities by helping make financial dreams a reality.

“We strive at all times to serve the member by meeting their schedule, not them meeting ours. Quite often, I meet with members after work hours because they just can’t make it in here between banking hours of nine to five,” he says. “We have some outstanding members on the commercial side and hope to build on that while continuing to provide our services to as many new commercial borrowers as possible.” This focus on exemplary service makes a difference to business members like Dave Sjoberg of HomEquip. who joined Westoba seven years ago. Sjoberg appreciates having the ability to stay in touch with Westoba staff members directly, without being routed through a call centre, and he believes they take a genuine interest in understanding the nature of his medical supply business. “This includes speaking with key personnel on site to understand current and projected cash flow requirements in order to address inventory levels, receivables and general operating costs,” Sjoberg says. Based on his positive experience, Sjoberg recommends Westoba Credit Union as a full-service financial solutions provider. “I believe it is important for all to review the options available to you regularly to ensure the services, costs and personality meet your needs,” he says.

“Our Financial Planning Solutions Team is able to develop a financial plan unique to each member’s goals

and execute strategies to help financial dreams come true…” Joanne Conan, Senior Financial Planner, Mobile

“Our Financial Planning Solutions Team is able to develop a financial plan unique to each member’s goals and execute strategies to help financial dreams come true — for personal and business goals, from birth to succession and estate planning,” Conan says. Founded in 1963, experience and that commitment to personal care set Westoba apart, notes business account representative Kevin Bray. “We provide full services for our businesses, including lines of credit, term loans and mortgages,” Bray says.

“Westoba was a move I should have investigated years ago — from both a personal financial interest as well as a business with HomEquip.”

“We use the Canada Small Businesses Financing Program, which assists our small businesses because we can lend upwards of 90 per cent of their asset values.”

Visit Westoba Credit Union online at www.westoba.com.

SMART. STRONG. SAVVY.

All qualities business owners have.

Running your own business isn’t easy. It takes a lot of hard work and we think what you do is important. Local businesses play a big role in our economy and we’re proud to be a part of the process. Our goal is to make managing your accounts simple, so your time is better spent on other things – like growing your business! Let’s talk about your business goals. Connect with our experienced Business Solutions Team today.

Building Community. One Business at a time.

westoba.com | 1-877-WESTOBA Westoba-BusinessSolutions@westoba.com

C M Y K

SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

Southern Exposure Learn how to succeed in the U.S. market M any Canadian companies are naturally drawn to the U.S. when they decide to export or set up operations abroad. It’s also a proven launching pad for expansion to higher‑growth developing countries. But for too many entrepreneurs, a U.S. expansion ends in costly failure. That’s because Canadian companies often expand to the U.S. without making the necessary preparations. “Entrepreneurs tend to underestimate the challenges of expanding to the U.S.,” says Carl Gravel, Director of Global Expansion - Consulting at the Business Development Bank of Canada (BDC). “The U.S. actually has many different markets. There are 50 different ways of doing things, depending on the state.” The first step to a successful U.S. expansion is to thoroughly research your market. Contact industry associations, research competitors and ask the advice of industry insiders. “U.S customers will ask, ‘Why you?’” Gravel says. “What are you bringing to the market? What is your unique value proposition?” It’s also important to seek out reliable local partners such as distributors, sales agents or joint‑venture partners to help you gain a foothold in the U.S. You can use the extensive services of government organizations such as BDC, Export Development Canada, the Canadian Trade Commissioner Service and the Canada Border Services Agency. Canadian business owners should also beware of U.S. tax laws. They are complex and enforced at the federal, state and even municipal levels, meaning a Canadian entrepreneur aiming to do business in several U.S. states could be in for a tax headache. When Noel Asmar founded her apparel company back in 2002, she had no idea most of her business would come from the U.S. To avoid incurring major start‑up costs, Asmar focused her sales strategy online, launching Spauniforms.com in December 2002. Her first orders came from south of the border and presented immediate challenges and opportunities. “I was really small and stocked goods in my home, dropping items at the post office personally,” she says. The company has since experienced average annual growth of over 25%, with about 80% of sales coming from the U.S. “Doing business there can be challenging, so you need good advice,” says Asmar, a BDC client. One important challenge for Asmar was logistics. As her company grew, it became imperative for Asmar to deliver in the U.S., in an efficient and affordable way. She outsourced logistics — setting up distribution in the U.S. through a third‑party firm to avoid customs delays and fees. The move allowed her to cut costs, improve customer service and reduce her stress levels. Currency fluctuations can have a major impact on a Canadian business’s bottom line. Asmar’s response to a rising Canadian dollar was to begin hedging, and it’s now a central part of her international strategy. Her most critical piece of advice on how to succeed in the U.S. is to build a strong brand with an equally robust digital presence. “Be prepared to spend at least 15% to 20% of your capital on building your brand,” she says. “Regardless of whether you’re in a niche market, you need to set yourself apart in the U.S.” For more information, download a free eBook guide to exporting and expanding outside of Canada at www.bdc.ca. ❚ Just Watch Me! Contest Community Futures Manitoba’s Entrepreneurs with Disabilities Program (EDP) wants to hear from entrepreneurs with health conditions or disabilities. S hare an inspiring success story, and you could be among the winners in EDP’s Just Watch Me! video contest. Last year, winners included young Beausejour entrepreneur Sydney Deneka, a high school student who launched Kozy Kritters by Sydney in 2012. Sydney, who has a rare disorder called Coffin-Siris Syndrome, embroiders personalized blankets for pets and babies. Her successful home business has attracted regular customers, and it allows her to give back to the community with donations to pet charities. Sonya Nicholson, who has psoriatic arthritis, was another winner for her business partnership Cool Dozen Micro Golf in Selkirk. And Holland entrepreneur Nancy Weicker, who has spina bifida, shared a winning story about her Independent Epicure Consultant business. The contest has gathered and shared inspiring stories since 2011. This year, the contest opens on Dec. 3. The deadline for video entries is Jan. 20, 2016 and the public can vote for videos starting Feb. 4. Winners will be announced Feb. 18. For information about the contest and other Community Futures Manitoba initiatives, visit www.justwatchmecontest.ca or www.cfmanitoba.ca. ❚

Acquisition strategy: How to buy the right company

A cquiring a company can be a smart way to expand your business — especially in markets where it’s hard to gain a foothold. But acquisitions can turn sour for a variety of reasons, including poor target selection, weak integration and inappropriate financing. A critical element often ignored by entrepreneurs is making sure that buying a business is the right growth strategy for your company. “Analyze what new value you could add to your company,” says Enes Kula, Director, Growth & Transition Capital, BDC Capital. “Then, ask if you have the internal capability to create that value. If you don’t, then an acquisition could expedite the process.” The next step is choosing the right acquisition target. List strategic criteria the target company must meet and stick to them. Businesses often get caught up in the excitement of shopping for acquisitions and make the mistake of buying companies that aren’t a good strategic fit. Once you’ve narrowed your choices, it’s vital to do due diligence on your potential acquisition, investigating everything from its gross margin to working capital and inventory turnover. “One danger when buying a business is paying too much, especially when shopping in a hot market,” Kula says. “Overpaying reduces your financial returns and increases your risk.” Swish Maintenance CEO Shane Mahoney’s patient approach to buying a company has been a proven winner for the cleaning products manufacturer,

distributor and retailer. Mahoney has embarked on an ambitious growth strategy at Swish that includes acquisitions. Swish had previously paid for acquisitions with traditional bank loans, advances from the owners and cash flow. However, when it came time to finance its purchase of S.K. Sanitary Specialities Manufacturing, Mahoney turned to BDC and mezzanine financing. It’s a debt product with flexible repayment terms tailored to suit particular situations, including acquisitions. The acquisition gave Swish a solid anchor in Western Canada and, with sales up significantly, the company was well positioned for more growth. When Swish next acquired White River Paper in Vermont in 2014, Mahoney appointed a full‑time project manager to oversee the integration for the first year. The result is “a much higher level of employee engagement on both sides.” Mahoney also decided to keep the White River brand, widely recognized in New England, and to rename Swish’s entire U.S. division Swish White River. As well, White River’s employee benefits were superior to those at Swish while costing the same amount, so Mahoney adopted those benefits for Swish’s existing employees. The moves built trust and morale on both sides, and reassured White River staff that the acquisition wasn’t a cold‑hearted corporate takeover. “It’s emotional for all staff,” Mahoney says. “There’s always a sense of insecurity. If you are inclusive and give employees the feeling they have a say in the future business, you get much higher commitment.” ❚

Here are four steps to a smooth transition:

1. Consider various financing options. It’s important to consider a financing structure that maximizes your repayment flexibility and reduces personal risk. Useful options include vendor and mezzanine financing. 2. Get an outside evaluation. Entrepreneurs may overestimate the value of their company, complicating an acquisition. Seek professional third‑party advice on their valuation. 3. Appoint and reward a project manager. A project manager can oversee the acquisition. Compensation should be, in part, based on the performance of the acquired company. 4. Adopt best practices. Look for best practices at the acquired company that you can adopt throughout your entire business.

C M Y K

SMALL BUSINESS MONTH - Supplement to The WInnipeg Free Press - Wednesday, October 21, 2015

“People don’t want to buy insurance, but they have to - we try to make it as uncomplicated as we possibly can.”

The industry has changed a lot since Susan Gilbert and Brian Gilbert founded MIG Insurance Group Ltd. 20 years ago, but they’re proud the thriving company has remained a Manitoba-owned family business. Photo by Darcy Finley

Protecting Your World MIG Insurance Group delivers peace of mind

that gives clients 24/7 access to their policy documents. Clients receive email reminders when it’s time to renew, along with information and advice on new products. “We’re the only ones in Manitoba who offer this service. You can slip onto your portal and check your deductible any time. It’s one more way we work with you to protect your world,” Susan says. “We know our clients want this option, but we’re not offering this to replace the face time with them. We don’t want people to feel like we’re pushing them to online solutions.” As an independent brokerage, MIG’s goal is to provide the best insurance products for each client, including business, home, auto, agricultural, life, disability and group insurance plans. “The fact that we are locally owned makes us able to be a bit more agile than other companies,” Susan says. “We have a holistic approach to meeting our clients’ needs and we pride ourselves on being forward thinking.” MIG has a lot to celebrate in its 20th-anniversary year. A small family business that grew into a big success, it now has nine locations across Manitoba — including five in Winnipeg — and more than 40,000 customers. “Our industry has changed a lot over the years. Lots of Manitoba brokers have been bought by international organizations,” says Brian Gilbert, MIG President and

CEO. “We’re extremely proud to be one of the largest Manitoba-based and operated insurance brokers.” The Gilberts have worked hard to ensure that clients receive the same level of service whether they’re in St. Claude, Winnipeg, Winkler, Portage la Prairie or online. “People don’t want to buy insurance, but they have to,” Susan says. “We try to make it as uncomplicated as we possibly can.” Building a strong team was critical to the company’s success and growth, she adds. “It’s tough to do everything yourself when you have nine locations and are geographically spread out, but it’s also hard to step back when it’s your baby. To move forward, we needed to learn to count on our team. We hire high-quality employees who build relationships with our clients.” The ultimate goal is to make sure clients are prepared for every possible outcome. “If something happens to our clients, we want to get them back in the financial position they were in before the loss as quickly as possible,” Susan says. “We want our customers to be able to relax and live in the moment, knowing they are financially protected against loss.” Learn more at www.miginsurance.ca. ❚

co-founded the company with husband Brian Gilbert in 1995. “When we add a feature to our business, we’re thinking about what would make a difference to our clients. We understand what their needs are and how they’ll need to be protected if something happens,” Susan says. “We’ve made sure we’re providing our customers with online access and we offer them different ways they can connect with us.” For example, MIG’s Never Forget Your Insurance program provides an online portal

By Holli Moncrieff for the Free Press L ife is hectic. We all have enough things to worry about — and insurance shouldn’t be one of them. That’s why the folks at MIG Insurance Group Ltd. do everything they can to make clients’ lives a little easier. “We make sure we’re accessible in a way our clients want, and we’re good at being responsive to people,” says Susan Gilbert, who

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