THE BUSINESS GUIDE
You're Guide to Better Business
CONTENTS Small Business Banking
p.10 • Keep the books the easy way!
Page.................................................................. 4
Technology
Page................................................................ 12
Office Life
Page................................................................20
Business Security
Insurance
Small Business Association
Locations
Communications
Sustainable Business
Page................................................................23 Page................................................................24 Page................................................................26
Page................................................................30 Page................................................................34 Page................................................................42
Invest in America
Page................................................................48
Canada's Business
Page................................................................58 p.36 • Location, Location, Success!
Credit Control
Page................................................................62
THE BUSINESS GUIDE IS PUBLISHED BY PUBLISHER...................................L. Mallett SALES DIRECTOR...........Jennifer Priestley EDITOR...........................................Lisa Rind DESIGN...................................... Jason Collee
JIGSAW MEDIA CANADA Suite 413, 153 Cambridge Road Crystal Beach, ON, L0S 1B0 Tel:289-876-8990 Fax:289-876-8724
©Jigsaw Media Canada. No reproduction in whole or part is permitted without written permission. The Publisher cannot be held liable for any loss suffered as a result of information herein, and accepts no responsibility for loss or damage to unsolicited material nor return it without an SAE. All prices quoted were correct at the time of going to press but are subject to change. The contents of the magazine may not necessarily represent the views and opinions of the editor.
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SMALL BUSINESS BANKING
When it comes to your bank,
CHOOSE CAREFULLY Whether large or small, profit or non-profit, your company has a name and a reputation. Standing behind your reputation is your financial institution - quietly there in the good times, beside you in the bad times helping make things right.
T
he relationship begins when you conceive the idea of your small business. One of your first actions, after you have a name, should be to open a business account in that name. Separating your personal accounts from your business only makes sense - even if your business is little more than a hobby at first. The benefits to your small business are many: From ease at tax time to ensuring professionalism, you will be able to write cheques or use credit with the confidence that comes from your financial institution’s backing.
That’s the plan, Stan
Once you have your name and a clear idea of what your small business is all about, develop a business plan that details your structure, outlines your intended customers, defines your operations and the number of employees needed to run your business. With details like these decided on, you will be able to gain a clear idea of the financing needed to start your business. Your financial institution will be able to assess risk based on your projected figures. Set up a few meetings with representatives from your prospective financial institutions. Your choices are big-name banks, savings and loan companies, credit unions and investment firms. All of these might operate differently, so peruse their websites to discover the types of small business services offered.
All questions are welcome
At the meetings, ask questions to find out how each bank’s services could potentially benefit your small business. Is there a small business specialist on the premises who would be available to consult with you, should you need it? Could this person assist with your cash management needs? Could he or she counsel you on various investment products? Provide advice on qualifying for a loan that best meets your business’s needs? Does the bank offer an insurance program? What types of small business accounts are offered, and what are the interest rates for these? Would you potentially qualify for a loan, or credit? Is the 6
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representative a person you can comfortably deal with?
On the road to maturity
Once you have the answers to all your questions, it’s time to make a list of pros and cons for each financial institution. Consider the steps your business will be taking as it grows, and make sure your top pick is a bank that will grow with you. Try not to make your choice based on service charges alone. Evaluate your personal comfort level at each meeting by taking notes very soon following each one. Since small business specialists are familiar with the needs of businesses like yours, ask them what they consider your chances to be. An honest answer will likely be one with which you are already familiar, if you have done your research.
representative of your small business, to develop a personal relationship with your banker before you even need money. Your choice will be the financial institution where not only do you feel most comfortable, but where there are staff members who specialize in meeting the needs of emerging and growing small businesses.
Shake on it
Once you have made your choice, follow up with another meeting. Find out from your banker what steps you need to take to establish yourself as their customer. Ask about keeping in touch, and find out if email is allowed, in addition to phone and fax information. The more you communicate with your banker, the better your relationship with your financial institution will be.
Follow up
The purpose of the meet and greet isn’t just an information session. It allows you, as the
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SMALL BUSINESS BANKING
Are you
FINANCIALLY LITERATE? How accounting software can help small business owners get a handle on their most important financial figures.
A
ccording to a 2009 survey conducted by Angus Reid Strategies, nearly a quarter of Canadian small businesses polled admitted they were unable to identify their most important costs. More than half identified cash flow as one of the most important aspects of financial management. Sound familiar? Many small business owners could use an easier way to manage four key areas of their business finances: cost management, invoicing, cash flow and taxes. The good news is that there are accounting software products on the market specifically designed for non-accountants to take control of their finances—simply and easily. Here are just a few ways accounting software can help your business become more financially literate.
Easy set up and start up. A good accounting
system should be easy to learn and use so there are virtually no obstacles to getting started and using it on a day-to-day basis. The process of keeping track of expenses should be intuitive. Creating professional invoices should be quick and easy. Learning resources, training programs, and support should be there for you when you need it. You’ll become adept at good accounting practices without even knowing it!
Automatic tracking of expenses. Accounting
software keeps your business expenses categorized by category, i.e. “rent” or “phone.” This is absolutely critical for being able to contain those expenses. You should be able to easily and quickly see where your money is going and how to rein in spending, if necessary. You should be able to discern historical patterns, compare spending month-to-month, spot anomalies and create spending budgets. If surveyed by Angus Reid, you should be able to identify what your most important cost is. Accounting software takes you from “I should know that” to “I do know that.” 8
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Professional invoicing. Invoicing like a pro
means three things: 1) getting your invoices out on time; 2) getting your invoices right; and 3) getting paid. Accounting software can help you on all three counts. It can maintain information about your customers, your prices, your items and your time, so there is no need to gather those details at invoicing time and there’s less of the manual data entry that can result in errors. Of course, if your invoices go out on time, and they are accurate, you’ll get paid faster. Want to make invoicing easier and get paid even faster? Look for an accounting system that allows you to send invoices and get paid online. Or over your mobile phone if you want to really be on the cutting edge.
Cash flow. When you bring a good accounting software solution in-house, you’ll save time on the day-to-day tasks like paying bills and creating invoices, while acquiring important information in the background about your spending patterns and expected income. Now, when you want to predict cash flow for the next few months, you can just print a report—and plan ahead for your cash requirements. Tax preparation. Another big payoff of using
accounting software to maintain an organized bookkeeping system is that it will be much easier to prepare for taxes. Your accounting system should be able to instantly give you the reports and information you need at tax time. Email a profit and loss statement to your accountant—instead of sending over a shoebox full of receipts—or file GST, PST, HST and payroll taxes online. Attaining financial literacy doesn’t happen overnight. But with an easy-to-use accounting software solution, you can be well on your way in practically no time. Be sure to let Angus Reid know you’re ready for their next survey.
SMALL BUSINESS BANKING
Keep the books
THE EASY WAY As a brand-new small business owner, you can save yourself time and money by taking care of your own basic bookkeeping. It’s possible, even if you are not a computer wizard, to use a beginner-friendly accounting software to keep your business on track.
W
hile there is no substitute for an accountant come tax time or as your business grows, the day-to-day money tasks can easily be looked after with simple software that can be customized to meet the needs of your small business. And here’s the bonus: Anybody can do it. The key is training to use the software properly.
Put your ducks in a row
Once the software is customized to meet your business’s needs, it will be possible to generate payrolls, track and pay taxes, keep employee records and track all bills and invoices. Some software will link to online banking services, so changes to bank accounts or credit cards will automatically be incorporated into the program. Some software will also integrate
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with other office software, with the potential to track inventory, track expenses by project, assemble job bids, identify profit or problem areas and generate invoices for clients.
Sounds pretty easy, yes?
It’s much faster to track your business’s financial progress via a computer keyboard and screen than it is to compile data from manual ledgers. However, speed of data entry is just one of the main advantages of using accounting software. A second advantage would be accuracy: There is less room for errors, as just one entry is required for each transaction recorded, as opposed to the duplicate entries required when keeping ledgers manually. Not to mention that the on-screen data will always be legible!
So many uses
Instant, up-to-the-minute information, as well as tax tracking, report generating, payroll assistance, daily account maintenance and improved efficiency are the reasons most small business owners purchase accounting software. Cost savings generated by time saved as staff no longer fear the month’s end and a reduction in employee stress level are huge benefits to any company, large or small.
Try before you buy
Many accounting software companies offer trial versions on their websites. While often not a full version, a trial will allow the business owner to decide on ease of use and customization. Trials are often good for more than 30 days, which means all the program’s benefits can be put to good use. Once the user or users have taken the software’s tutorial, it only remains to see whether the program and your business are compatible. Before you decide to purchase an accounting software package for your small business, check with your financial institution to ensure your choice won’t be a problem. Check also with your tax accountant, to ensure compatibility of files. Then, start looking after your dollars - it only makes sense.
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TECHNOLOGY
The For Dummies
SUCCESS STORY When we first published DOS For Dummies, the breakthrough computer book of the 1990s, some critics worried that the title would insult potential customers.
N
ow, 20 years and millions of books later, For Dummies has become an international knowledge and know-how revolution featuring printed books, e-books, software, videos, audio CDs, Web sites, and mobile apps.
Inspiration
The For Dummies phenomenon began 20 years ago with the overheard comments of a frustrated customer in a software store. The customer, who knew nothing about computers, was looking for a simple, basic book about the difficult DOS operation system. “Something,” he suggested, “like DOS for dummies.” From the start, For Dummies was a simple yet powerful concept: identify with the anxiety and frustration that people feel about a technology by poking fun at it with books that are educational and make difficult material interesting and easy. Add a strong dose of personality, a dash of comic relief, and— voila—you have a For Dummies book.
The presses roll...
In November 1991, 7,500 copies of DOS For Dummies rolled off the presses. Most bookstore chains didn’t want to carry the book, claiming that the title insulted readers. We responded to the critics by calling the title a “term of endearment” that readers would immediately relate to and identify with. Consumers agreed. Readers were tired of knowing that they were
Everywhere you look, we’re making everything easier. 16
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smart but being made to feel dumb just because they did not know about a topic.
Onward and upward
In April 1994, we extended the For Dummies experience beyond technology topics by publishing Personal Finance For Dummies. Within three weeks of its publication, the book sold out in bookstores across the United States. Today, For Dummies covers virtually all topics, including Statistics For Dummies, Living Dairy-Free For Dummies, and even Raising Chickens for Dummies. There are even For Dummies books for technologies and topics such as Social Media (Facebook For Dummies), e-books and e-readers (iPad For Dummies) and “smart” phones (iPhone for Dummies and Droid for Dummies) that were barely a vision when the For Dummies phenomenon began. Now, 20 years later, For Dummies tackles any topic that’s complex, confusing, intimidating, or that conjures up any feelings of anxiety. (And yes, we have Overcoming Anxiety For Dummies!) For Dummies extends around the globe with large publishing programs and promotions in the U.S., Canada, Asia, Australia, Germany, France, Spain, U.K., South America, and Russia.
Visit us at www.dummies.com and www.dummies.biz
OFFICE LIFE
Stress is
BUSTING OUT ALL OVER In order to manage stress and its symptoms, it’s important to define its existence. According to the Oxford Dictionary of the English language, stress is pressure or worry caused by the problems in a person’s life: A state of mental or emotional strain or tension resulting from adverse or demanding circumstances. Stress can cause illnesses that are physical, emotional or mental in nature, and can be a factor in the development of long-term illness. If we reduce the stress in our lives, we will be less likely to feel its effects.
E
very person needs a little bit of stress in their lives. A small amount of stress helps us to accomplish daily tasks and devise solutions to everyday problems. Excessive stress, however, like the kind that comes from running a small business where you may be the person in charge of everything, needs to be managed.
So, you’re in charge. Get over it
You may be the person at the top - and bottom - of the workday heap, but that doesn’t mean you can’t devise ways to manage stress during your day. One surefire way to reduce the effects of stress on your physical health is to keep fit. According to Health Canada, physical activity helps us to release calming chemicals in our brain and promotes better sleep, enabling you to start each day fresh, at the top of your game.
Relief tactics
There are other tactics a boss or employee can take during the workday to help manage stress. One way is to keep an updated to-do list handy, with tasks prioritized in order of importance. Decide which jobs can be delegated, and which must be completed by you. As you work your way through your list, take advantage of technology: Delegate phone answering to a colleague, if possible, and set aside time in the afternoon to deal with email and respond to urgent messages. Avoid procrastination with the encouraging thought that each minute you are busy, your small business is succeeding. In addition to the to-do list, taking time for proper meals is extremely important. Maintaining a healthy diet by following Canada's Food Guide to Healthy Eating will help your body stay alert and your immune system ready to fight off challenges. If you aren’t a fan of the three-meal-per-day 20
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model, switching things up a bit can help you stay focused. Get up from your desk at least once per hour to stretch and move. Go for a walk, run errands, or move to another room to change your focus and rejuvenate your mind. Take shorter meal breaks, following the model set out in Canada’s Food Guide to Healthy Eating. After a meal, don’t be afraid to rest and refresh. Meditate, listen to music or read for 10 or 15 minutes. It’s a quick break that can make a difference in your ability to think clearly.
Consider stress reduction a perk of the job
Acting on lifestyle changes and employing stress-busting tactics to manage your day sounds easy - after all, you are just one person. But when you are the small business owner with two, three or more employees - you absolutely have to make some of your personal tools available to your employees, so they, as well as you, remain stress-free. Share your tactics for prioritizing, and let employees know you are there to be delegated to, as well, should the need arise. Large companies have been known to offer employees space to use exercise equipment and equip kitchens so employees have a place to take a meal break. You don’t have to be a large company to set aside a little space for a treadmill or other equipment. If you do this, however, you need to be a role model. Your employees may feel more comfortable taking an exercise break if they see you doing the same. Fully equipping a kitchen may not be necessary, depending on how many employees you have. You may need to provide a refrigerator, table with comfortable seating and a microwave,
and your employees will have a decent space in which to take meal breaks or just get away from the desk for a few minutes.
Think about time
We have already discussed downtime, or regular breaks away from the desk to rest and refresh. Flex time is another way of allowing employees to adjust their workday to better manage stress in their lives. An employee with small children may wish to work early and leave early, to be home for when the school day is over. Night owls may wish to come in at noon, but will happily work away until 8 p.m. These alternative schedules can actually benefit your small business, as they ensure someone is in the office or store for extended periods. ...continued on page 22
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Communication is the key
Encouraging employees to recognize their need to relieve stress with communication is a tactic that won’t cost your business a cent although it may increase profit. Talking through the day’s difficulties with a co-worker lets us vent our feelings, so the stress of emotional pressure build-up doesn’t occur. If you are the owner of a small business encountering some problems for the first time, it’s likely another business has been there before. Joining a Small Business Association may provide you an outlet for discussion and a place to learn from others’ mistakes. In the office or store, don’t be afraid to talk about what’s bugging you: A group of two or three employees, within which each colleague has the same information, is more likely to function better as a team.
Life is funny - yuk it up! Laughter increases oxygen supply to the brain, enhancing mental clarity, attention and concentration. American comedian and musician Victor Borge said that “laughter is the shortest distance between two people.” Colleagues who share the day’s funny stories with one another will diffuse the stress of the work day with humour, enabling communication and releasing endorphins in the brain, raising their pulse and blood rate, which causes them to breathe faster and deliver more oxygen to the body’s tissues. It’s like a workout! Happier employees are less likely to feel the effects of stress, as they are accustomed to using humour to mitigate those effects. It is virtually impossible to be stressed out if you are laughing. 22
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No “I” in “team”
You need not be a millionaire in order to provide your employees with some of the tools they can use to reduce the effects of stress on their day. Whether you are one, two, three or more people running your small business, recognizing among yourselves that stress can harm your operations is important. More so is the ability to apply strategies for dealing with it. Get together to set some easy guidelines among yourselves, like picking casual-dress days, sharing delegation duties, sitting down for regular communication time and taking regular breaks. Your group of employees now becomes a team, and no matter its size, is now better-equipped deal with stress and achieve success for your small business.
Health Canada, “Best Advice on Stress Risk Management in the Workplace, parts 1 and 2,” www.hc-sc.gc.ca.
BUSINESS SECURITY
Sound the Alarm Against Theft
SAFE & SECURE All businesses need comprehensive business security systems in place in order to protect company inventory, company information systems, and company employees. What kind of alarm?
It's important to pick the proper alarm unit based on the type of protection your small business requires. Peace of mind is what all company owners seek, to know that at the end of the day when they lock up their office, their company will be safe and secure. Some businesses need protection not only when they are closed, but also when they are open during regular working hours. For example, a company that deals in valuables needs an alarm unit that monitors company grounds during the day. Such companies can benefit from a closed-circuit TV unit in hightraffic areas, where people can see they are being monitored at all times.
Signs, signs ...
TV cameras deter people from illegal activity because they are aware they can't hide. Some companies place the cameras in plain view with signs warning people they are being watched – and this may be required by law. Usually, the company installing the units is able to advise on the signage required. Of course, signs are not enough to keep some people from committing a crime; they don't always act as a deterrent. For this reason, some companies use guards or dogs to regularly patrol company grounds, in addition to their closed-circuit monitoring and perimeter alarms.
It's company policy
Depending on the business itself, an insurance company may make a theft-detection system a condition of coverage, along with damage-
control systems, like smoke detectors and fire alarms. It's a good idea to verify with the insurance company the type of system your policy demands – it's even possible your insurance company works with approved installers and will be able to suggest a company that can help you plan your security system.
Invest in your future success
Your employees are the first line of defence when it comes to keeping your business safe. As your small business grows, though, it may be difficult to keep track of everyone all at once. Relying on the eyes of a closedcircuit monitoring system not only protects your business, but provides added security for employees as they go about their day. Identification swiping, doors with coded entry and even fingerprint scanning are some of the systems used to protect employees within a business.
Safety is attractive to job-seekers
If you call yourself a small business, it's likely you have just a few employees, or perhaps none at all. Protecting your premises from intrusion and theft is a smart decision, just like keeping your health and safety policy current. Use it as a tool to attract talent when your business is ready to expand. Show prospective employees you are taking care of the business details, and they will be eager to join you on the road to success.
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SMALL BUSINESS ASSOCIATION
The Small Business Association of Canada
HELPING YOU GROW The Small Business Association of Canada has been established to: • Assist the Growth of your Small business • Organize Workshops & Training Seminars • Facilitate networking and reduce isolation; • Facilitate self-education, business development, growth & sustainability; • Provide services, support and encouragement to our members; • Become a public voice for self-employed entrepreneurs in our area. What are the benefits of membership for me?
What is the Small Business Association of Canada?
People will do business with you when they know, like, and trust you. The same is true of getting referrals for your business.
In 1996, the non-profit Home Business Association of the National Capital Region was established to bring together home business operators in the Ottawa area. It was later changed to Small Business Association of Canada to embrace a wider range of entrepreneurs and professionals.
As with any organization, what you put into it, is pretty much what you get out of it! You have the opportunity to take advantage of many or all of our membership benefits to learn and grow your business and share your experiences by being active in our events.
If you want to get more out of your SBA membership, then be proactive and get to know other members, help them first and abundance will flow back to you!"
The Small Business Association of Canada is a non-profit association of small business owners, entrepreneurs, and commissioned sales professionals. The Ottawa Chapter is located in Canada's capital, the City of Ottawa, its neighbouring communities and l'Otutaouais.
SBA members understand the revolution that is occurring in North America. More and more people are making the decision to take charge of their own destiny. As this movement grows stronger every year, so is the need for a forum that will strengthen and support each other. The nation-wide growth in the number of home based businesses and micro business (now estimated at 2.5 million) is leading governments, policy institutes, the media, and those who provide goods and services to business to pay increasing attention to this sector.
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We seek to help our members grow their business through: • Training • Education • Networking Opportunities • Managing all aspects of a business • Developing credibility with clients Members are encouraged to participate in event organization to promote themselves and/ or their business. The best way to get to know people and build rapport is to volunteer for a committee or the board of directors.
OUR SPONSORS
• Canadian National Institute of Health Inc. • vKoopia • Sonego Boivin & Associates • Jigsaw Media Canada • Health Quotes.ca • Krumpers Solar Solutions • Bijou Media Marketing
OUR PARTNERS
• Algonquin College
NOTE:
Industry Canada typically uses a definition based on the number of employees: a firm is considered small if it has fewer than 100 employees, and medium if it has up to 499 employees. A firm with one to four employees is defined as a micro-enterprise. The term SME (for small and medium-sized enterprise) is used to refer to all businesses with fewer than 500 employees.
Just the facts
• 98% of businesses in Canada employ fewer than 100 people. • *Between 2002 and 2006, 130,000 new small businesses, on average, were created in Canada each year. • *Small businesses with Fewer than 50 employees account for about 26% of Canada's GDP. *Source: Industry Canada.
For more information or to become a member call us at 613-276-7700 or visit us online at www.vkoopia.com/SBA-Canada 5-80 Terence Matthews Crescent, Kanata, ON, K2M 2B4 You can also follow us on Twitter: www.twitter.com/sbacanada Facebook: www.facebook.com/SBA.Canada
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COMMUNICATIONS
Keeping your Local Business Connected
COGECO
Cogeco Business Solutions: high speed internet, web hosting and phone services designed with business owners in mind.
B
ecause Cogeco people live and work in your community, we understand you better than any other telecommunications company and as a result, our business services have been specifically created for entrepreneurs like you. Made for your business, our services are not rebranded residential products, nor are they cut down versions of “big corporation” services. This means that Cogeco Business Solutions are hassle-free, excellent value and enable you to focus on what you do best: managing your business confident that you are well-connected to your suppliers and customers. • With Cogeco, you get all-inclusive services with exactly the functionality and perks you need (and nothing you don’t!) • You’ll save money with our straightforward low prices with no additional or hidden monthly fees • You’ll have peace of mind, backed by our local award winning customer service and 24/7 technical support
Calling our dedicated Customer Service Center (located in Burlington) at 1-866-COGECO-B (1-866-264-3262) will allow you to talk directly to one of our Business Solutions specialists without going through an endless interactive menu. From there, our team will give you all the information and support that you need to make the best decisions for your business. If you prefer a face to face meeting, we’ll be more than happy to send one of our local representatives to visit you at your convenience. And, in case this is not enough, you can also learn more about Cogeco Business Solutions through our extensive network of regional Authorized Partners. Our customers join us for the cost savings generated by our all-inclusive, guaranteed monthly pricing, but they stay for the excellent value and service they receive day after day. What’s more, we offer flexible terms and packages, so your service can change as your business does. So find out why your peers and colleagues have made the switch.
At Cogeco, we do things differently – we put you first How are we different? Let’s talk local: did you know that unlike most other telecommunications companies, we have a local presence in all of our markets? Whether it be via our dedicated Customer Service Centre (located in Burlington), or our many local community representatives, you can be sure that reaching Cogeco Business Solutions will always be easy. 26
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To learn more about what Cogeco Business Solutions can do for your business, call 1-866-COGECO-B (1-866-264-3262) or visit madeforyourbusiness.ca
COMMUNICATIONS
Energizing Employee Engagement for
R
SUSTAINABILITY
ay Anderson, Chairman of Interface Carpet wrote in his 2009 book, Confessions of a Radical Industrialist about an employee who, when queried by a visiting executive stated “I come to work every day to help save the earth”. No, this wasn’t the Environmental Manager. He was a manufacturing fork lift driver. Somehow, he had come to understand his role in the company’s “Mission Zero” goal; a mission to eliminate the negative impact the company has on the environment by 2020. He understood the connection between the act of transporting carpet rolls and the company’s waste and emissions; between the waste and emissions and the health of the earth. And he personally valued the health of the earth. This alignment between personal values, company goals and environmental responsibility is a powerful force in the implementation of sustainability. Yes, it is that easy and … that hard. There is no end to the number of tips available to achieve employee “buy in” and engagement. Wal-Mart uses Personal Sustainability Plans. E-Bay supports its Green Teams by encouraging community engagement, and offering incentives and discounts for things like residential solar arrays. Westport Innovation, a technology firm that produces natural gas technologies for transport trucks, hires “environmentally conscious” employees. In reality, companies that have successfully engaged employees are not doing just one thing. There is no quick fix.
2.Clarify Expectations
- create and implement policies, procedures, practices and Codes of Conduct which integrate sustainability into the entire strategy of the corporation.
3.Build Momentum for Change - support
a culture of sustainable innovation. Interface Carpet knew it could never achieve “Mission Zero” doing the same old thing. Products have been dramatically redesigned and its business model turned on its head. If Interface had its way, it wouldn’t sell another tile of carpet, instead it would lease you a lifetime of functional and gorgeous flooring. Why? It is the only way they can ensure that 100% of their carpet is recycled into their next flooring product.
4.Instill Capacity for Change - become
a “learning” organization. Research says, “… sustainability cannot be achieved without innovation and innovation is best achieved in a culture that embraces learning.” Sustainability is a game changer. If you want to get employees excited about sustainability and “greening” you need to link what they personally value to your company’s ultimate sustainability objective. Then, “walk the talk” at every level. Your company’s “higher purpose” will be met with deep personal commitment and energy if it is authentic, sustained and systematically embedded into the corporate culture.
The recent study, Embedding Sustainability in Organizational Culture identified four practices to energize employees:
1.Foster Commitment - model behaviour
at the senior management level. Allocating resources to make things happen and supporting “sustainable” choices demonstrate commitment. 28
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Kathryn A. Cooper, President, Sustainability Learning Centre kathryncooper@sustainabilitylearningcentre.com www.sustainabilitylearningcentre.com For More Information on: Embedding Sustainability in Organizational Culture see http://www.nbs.net
INSURANCE
Peace of mind for the small-business owner
BEYOND INSURANCE “Insurance helps people build their dreams – and helps companies build their businesses – while protecting themselves and their property from unforeseen risks. By providing this protection against risk, insurers provide the invisible underpinning – the oxygen – of the entire Canadian economy.” - Insurance Bureau of Canada’s Fact Book, 2009
F
or the small business owner in today’s difficult economy, finding and maintaining the proper insurance can be critical to your company’s survival. As a new or existing small business struggling to find success in your market, many insurance carriers may consider you to be high risk, therefore raising the rates on your policies. Affordable small business insurance is out there - many carriers are seeking solutions to the problem of high risk for small businesses, and the choices of coverage are growing.
Do your homework
While you don’t need to be an insurance expert to purchase insurance for your small business, it’s a good idea to do a little research, so you understand the basics. Before you meet with a prospective insurance representative or broker, it’s a good idea to have a list of questions ready. During the meeting, outline your business’s profile, discuss your plans for growth, and ask questions like: • What kind of insurance do I need? • What wouldn’t be covered in my policy? • Does my small business face hazards for which I cannot buy insurance? • Does your company provide services beyond commercial property and auto insurance? • Does a homeowners’ policy cover a home-based business? • Will I need errors and omissions insurance? Business interruption insurance? 30
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• Based on my needs, what would my deductible be, and how does that affect my premium? • What about my employees? Does your company offer a “people factor” in its policies? • How can I keep my insurance costs down?
The people factor
Because the most important resource for your small business is the crew of people running it, including yourself, it’s vital to consider insurance policies that cover the people factor. Ask each company representative you meet with to tell you about its life and health insurance, and its group insurance policies for small businesses. Your plan for success and growth needs to include the types of insurance coverage you want to offer your employees. Think about each person’s role: The loss of just one key employee can adversely affect your small business’s success. In order to survive in the face of tragedy, your company may require the following: Disability overhead expense insurance Ongoing fixed expenses, such as rent, salaries and utilities, are covered in the event that you or a co-owner becomes disabled and cannot continue working. Disability buy/sell insurance Ensures your business has the funds available to purchase the interests of a partner or the shares of a shareholder who becomes permanently disabled and is unable to continue working.
Key person disability insurance Ensures your business has the financial resources to continue operating should a key person become temporarily or permanently disabled and unable to work.
Consider personal health
The most common type of benefit offered to employees of Canadian businesses, beyond a life insurance policy, is a medical health and dental plan. A compelling group benefits package is key to attracting and retaining quality employees for your small business. Most insurers offer flexible plans that cover life, disability, health, hospitalization, prescription drugs, dental, accidental death or dismemberment insurance, and more. Based on the needs of your small business employees and their families, group plans can be tailored to fit the needs of your crew of experts.
Everyone wins
Once you have covered the insurance basics, focus on a strong group package in order to attract and keep your high-quality employees. A great group benefits plan will boost morale, increase loyalty and reduce turnover - turnover being detrimental to the growth of a small business. It also sets you apart from your competitors. And since a healthy work environment improves productivity and reduces absenteeism, your business will benefit from the insurance of continued good health.
Follow up on your quotes
Once you have met with a broker or prospective insurance carriers, compare your quotes and assess the values of each plan. All you have left to do is put the plan into action. Protecting your small business is good for you, but protecting your employees is good for your small business. Insurance Bureau of Canada, www.ibc.ca
HOW INSURANCE WORKS The Pool
While it may seem complex, insurance is really quite simple: The payments (or premiums) of the many pay for the losses of a few. Your premiums go into a large pool, if you will, at your insurance company. The claims of the few are paid from that pool. Because there are more people contributing to the pool than there are making claims, there is always enough to pay the claims.
How premiums are calculated
Within reasonable limits, some of which are prescribed by law, your premium is calculated to reflect the probability that you will make a claim – that is, that you will draw funds from the insurance pool. Those who are unlikely to draw from the pool pay less than those who are more likely to draw from it. Insurers take many factors into consideration to determine the likelihood that you will make a claim. A common misconception is that a policyholder who has never made a claim should pay less, little or nothing for insurance. While it is true that past claims history is important, a more reliable indicator of how likely a person or business is to make a claim is the statistical group to which he/she/it belongs.
Insurance pays for…
Insurance pays for only those types of losses described in your contract. It is very important that you read your policy and/ or talk to your insurance representative about what you are covered for and what you’re not. Insurance will not pay for every problem that you may encounter, nor is it a maintenance contract. Insurance is generally intended – and priced accordingly – to help policyholders cope with the financial consequences of unpredictable events that are "sudden and accidental." - courtesy of the Insurance Bureau of Canada, www.ibc.ca
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INSURANCE
What’s one of the best ways to take care of your business?
TAKE CARE OF YOUR EMPLOYEES! Making a go of it in today’s economic environment isn’t easy for smallbusiness owners. Sometimes, it probably seems like “the big guys” get all the breaks — like being able to offer company life, disability, health, dental and other insurance benefits that are a key incentive when it comes to attracting the best talent.
W
ell, here’s some welcome news. Insurance coverage for employees is no longer the sole preserve of the big players. Even if you operate in an industry where it’s always been next to impossible to get insurance — such as construction, transportation or retail — you can get flexible, affordable coverage.
Ensuring access for all
At RBC Insurance® we have removed many of the roadblocks that prevented certain kinds of employees from qualifying for traditional, fully underwritten insurance. We’ve also made coverage easy to understand and easy to apply for. We believe that all workers should have access to protection for themselves and their families, including: • Truck drivers and others who work in the transportation industry • Contractors and construction workers • Independent retailers • Employees who work in manufacturing • All small businesses, whether they have 2 employees or 100
Making it easy
At RBC Insurance we have easy-to-understand, easy-to-implement solutions for your business insurance needs, including commercial home and auto insurance, travel insurance and life and health insurance. Since every business situation is unique, 32
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the type, features and amount of coverage can be customized to your particular needs. With the right protection in place, you can focus on what you do best — running your business.
Why offer your employees access to insurance?
Making insurance protection available benefits both small-business owners and their employees.
Benefits for the business Reduce sick pay Attract and retain top talent Gain an edge on competitors Reduce or eliminate fees for government compensation
Benefits for employees Guaranteed injury coverage* Income protection Return-to-work plans Protection for family members * Provided two qualifying questions can be answered.
To discuss insurance solutions for you and your employees, call RBC Insurance at 1-866-941-7670.
®Registered trademarks of Royal Bank of Canada. Used under licence.
LOCATIONS
Location, location,
SUCCESS! When developing a plan of action for your new small business, it’s important to consider location.
Y
ou have a name and a plan, and you are ready to situate your small business in the community. There is only one question: Where?
Do your homework
Depending on the nature of your business, the location will impact its success. A business that requires a storefront property must absolutely consider location to be of prime importance. A telebusiness, or one that is web-based, can potentially be located anywhere - as long as it can obtain the goods and services it needs to succeed. For businesses requiring a storefront property, there are many factors to consider before choosing the right location. Whether to lease or purchase property; what operating taxes exist; demographics; crime rate and infrastructure are just some of the details to investigate before making a decision.
Stepping out
If yours is a small business that relies on foot traffic, choosing a location where people shop can ensure your success. Some facts to consider when evaluating locations are: Possible competition; transit for employees; residential growth; store rent; adequate parking; expansion possibilities; signage and services provided to you, such as snow clearing and access to utilities.
Go piggy-backing
If you intend to manufacture goods and have 36
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a storefront, your location may depend on zoning regulations. Choosing a location where other storefront manufacturers exist is a smart move. Fresh signage offering a new product, or competition for an existing product, may encourage people to stop in and check you out.
The world is your oyster
If you are faced with an opportunity to go virtually anywhere, one strategy for planning the location of your small business is to visit communities where small businesses exist and succeed. If business taxes and utilities costs are a concern, research communities outside your closest large city. Often, smaller cities offer tax incentives to small business owners willing to relocate to their communities.
Share and share alike
Consider sharing working and/or retail space with another small business owner. Joining forces reduces the overhead costs for each business owner, making it easier to put funds back into the company’s operations. Finding a small business with which to share is usually possible through a local Business Improvement Area association.
Band together
Approaching a local Business Improvement Area association in your chosen community may offer the opportunity to join a growing fraternity of small business owners. A BIA joins businesses within its boundaries to supplement and ensure the provision of services to that community. Services may include cleaning the streets, decorating seasonally, security, capital improvements, and marketing the area, all of which are supplemental to services already provided by the municipality, like trash pickup and snow clearing.
Meeting with BIA representatives before choosing a location is a smart move - it’s an opportunity to discover whether this municipality is right for you.
From property to prosperity
The success of your small business may depend on reducing its overhead, which is defined as the general cost of running a business. This can include taxes, rent, payroll, utilities costs and inventory storage. Choosing the right location from which to run your business may ensure its success, as location impacts all other costs. Determining the needs for your small business in advance will help you get situated. Visit other communities, talk to business owners and don’t be afraid to ask questions. A bit of research beforehand will put you on the path to success.
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LOCATIONS
Become part of Alberta’s growing economy
SPRUCE GROVE Spruce Grove is the ideal location to build or relocate your business so you can be part of the Alberta advantage. Participate in the supply and service opportunities resulting from investment in the oil sands and other resource industries in Northern Alberta and beyond. Spruce Grove’s strategic location on the west side of the Edmonton capital region makes it the place for business and industry to establish themselves for prosperity and success. Strategic Location
Spruce Grove is a vibrant urban community with a robust local economy and a future-focused, open for business attitude, with convenient access to the amenities of a major metropolitan region of 1.2 million people. The city is an economic power centre 11 kilometres west of Edmonton and is the western gateway to Alberta’s capital region as it is strategically located on the Yellowhead Trans Canada Highway with highway connections to major resource development projects in northern Alberta, B.C. and the Northwest Territories. Spruce Grove is also a short distance east of the Highway 43 junction, which gives it access to the Alaska and Mackenzie Highways, and the Peace River region of Alberta and B.C., which contains the second largest oil reserves in the world. In addition to major highway links, Spruce Grove has convenient access to the Edmonton International airport and the CN and CP Rail Intermodal facilities.
City Advantages
Spruce Grove is a regional commercial centre with a diversified industrial base. The city has more than 210 international, national and local companies located in six industrial parks serving a trading area of over 70,000 people. Spruce Grove has excellent commercial development opportunities available and plenty of room for industrial growth on additional fully serviced land at attractive 40
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prices. The city also has the infrastructure in place to accommodate additional growth.
Competitive Fundamentals
Spruce Grove has had population growth rates of more than five per cent annually over the last 10 years leaving it with a readily available diversified skilled labour force. Financially the city offers many advantages including no business or machinery and equipment taxes, no provincial sales tax and low provincial income tax rates. Spruce Grove has been identified as a priority growth area in the Alberta capital region. This means it will continue to be a destination for residential, commercial and industrial growth. Spruce Grove provides employees with the opportunity to live close to where they work as housing costs are lower than many other centres in the capital region. The short commute is important in attracting and retaining a skilled work force. Spruce Grove is a city that embraces industry while at the same time progressing as a green and beautiful city. From land costs to skilled labour to quality of life, Spruce Grove not only brings you here; it has what it takes to keep you here.
SUSTAINABLE BUSINESS
Corporate Responsibility
GROW YOUR BUSINESS GREEN Going green: Industry catch-phrase, public relations stunt or a new way of doing business? It depends on the company. But whether you are starting a new business or joining an existing one, there are ways to reduce the cost of human activity on the planet.
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s large corporations take more responsibility for their actions, their suppliers and customers follow suit. Some companies actually produce office products that enable any company, from industry giant to home-based business, to reduce the size of its carbon footprint. By following safe business practices and using office products designed to save the planet, any employer can become a lean, green, ecofriendly machine.
Ten tips for growing a greener business 1. Use less paper. If you must print that email, find a supply of paper with a maximum available recycled content. Print doublesided documents whenever possible - this sounds difficult, but many newer printers are manufactured with this option as a default setting. It’s fairly easy to sit back and let the monitor tell you when to turn over that piece of paper and hit the “start” button again. 2. Reduce junk mail. If your office has mail delivery, simple signage indicating no flyer distribution might help. However, it may be possible to remove your name from your local Direct Marketing Association’s member prospect list. 3. Shut it down. Reduce electricity use by
shutting down computers every night and turning off all lights. If you have a lit sign, turn that off when your business is closed. Turn off power bars as well, especially if there are energy-sucking chargers plugged in to them. Examine alternative energy use, like solar panels, if possible.
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4. Go digital. Send the fax machine packing and instead use email. Sending documents digitally allows you to keep track of “paperwork” by burning to DVD. Or, archive material safely through storage on spacesaving external data drives.
too. Ask if trading partners will take back packaging for re-use.
5. Be re-seated. Choose energy-efficient
9. Make friends. Encourage employees to work from home when possible. Institute an employee “share the ride” program, to reduce the amount of automobiles on the road each day in your city. Offer incentives for employees to use local transit service - like being entered in a monthly draw for a day off. Don’t forget to be a role model!
office equipment, and chairs and desks that are either second-hand, or produced using recycled material. This won’t just save your business’s bottom line - it will reduce the planet’s greenhouse gas emissions due to the reduction of energy consumption caused by less manufacturing. If you can’t avoid purchasing brand-new items, make sure you are working with companies that offer greenedup business practices.
6. RRR. Establish a recycling policy - and not just for paper. Recycling e-waste like cell phones, cameras, and palm pilots couldn’t be simpler. Many office equipment manufacturers offer take-back programs for older items, which can sometimes be dismantled and recycled. Refill toners and cartridges at a local cartridge shop rather than buying new ones, when possible.
8. Park the dinosaur. If your company leases cars for its use, think smaller hybrids, or go electric to reduce employees’ use of fossil fuels.
10. Stay on top of things. Ensure you and your employees get the information they need to keep the planet turning smoothly. Webinars or lunchtime seminars offer great opportunities to employees to reconnect, ensuring everyone is on the same page when it comes to green business practice choices.
7. Share the wealth. Promote your business to like-minded companies that have instituted similar eco-friendly business practices. Trade services where possible, and ensure your supply chain boasts a green footprint,
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SUSTAINABLE BUSINESS
Good for the Environment
GOOD FORYOUR BUSINESS The Canon imageRUNNER ADVANCE Series of MFPs (Multifunctional Printers) are designed to be as environmentally friendly as possible throughout the entire product lifecycle. So now you can copy, print or scan in any colour you like – and it will definitely be green.
C
anon strives to make products that are environmentally friendly by following an energy-efficient manufacturing process, using recycled materials, eliminating hazardous substances and working to maximize the energyefficiency of their products.
The imageRUNNER ADVANCE products are specifically designed to rank among the very smallest and lightest available in their class. In addition, by simplifying packaging, Canon has been able to reduce carbon dioxide emissions by 20% per transporter vehicle.
The imageRUNNER ADVANCE Series platform has been designed and developed to maximize environmental benefits at the raw materials, manufacturing and product usage stages.
Product usage
The recent launch of the ADVANCE 2000 Series which caters to the small and home office market, has allowed Canon to pass down these environmental benefits in a smaller footprint.
Raw materials and manufacturing
By focusing on using resources efficiently, Canon aims to reduce the demand for raw materials. The imageRUNNER ADVANCE devices incorporate environmentally friendly bio-plastics on certain exterior parts. These are the first MFP’s to use bio-based exterior plastic and have the world’s highest level of flame resistance. Wherever possible, Canon also uses recycled plastics, which reduce carbon dioxide emissions by 94% (compared with new plastic usage). Canon was the first company to market imaging equipment that complies with the European Union’s RoHS (Reduction of Harmful Substances) directive; requiring companies to eliminate six known harmful substances used in the manufacturing process. Canon goes beyond these minimum requirements to prohibit, restrict and control the use of 24 substances in its products. 44
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Canon has incorporated a range of technologies into its products that help save energy while improving performance. For example, the new pQ toner (Pure Quality) is oil-free and utilizes small particles containing micro-dispersed wax. The fine particles melt at lower temperatures, dramatically reducing energy consumption. The pQ toner also produces sharper image quality and finer detail. All imageRUNNER ADVANCE models employ new components that heat up and cool quickly, virtually eliminating warm-up time and reducing energy consumption. Power consumption during Sleep Mode has been reduced to approximately the equivalent of a single LED Christmas light. All imageRUNNER ADVANCE models are ENERGY STAR qualified. Overall, energy consumption has been reduced by up to 75% as compared to previous models. Canon has accomplished these environmental achievements through their long-standing record of product innovation and performance.
For further information please visit www.canon.ca/contactus/ or call 1-800-OK-CANON
SUSTAINABLE BUSINESS
Why Recycling Electronic Waste Makes
GOOD BUSINESS SENSE
S
mall business relies on technology to stay competitive. Smart phones, computers, and printers and other items have become necessary workplace tools. But when it’s time to upgrade to a new computer or trade in an old phone system, then what? The solution in many cases is to simply unplug the old item, store it somewhere and make way for the new. Small business can generate a sizeable amount of e-waste this way, often taking up precious storage space. Throwing these items in the garbage, however, is in no one’s best interests. From a business perspective there are significant security risks. Discarded computers and other items with hard drives or SIM cards that haven’t been properly wiped, erased or destroyed may leave potentially sensitive information exposed to misuse, or even brand reputation damage. Then, of course, there are the environmental considerations. E-waste contains materials or substances that raise concern due to their hazardous constituents, like lead in CRT monitors and mercury in the light of some flat panel displays. It’s important to divert this material
To learn more about electronics recycling programs in your area, please visit: Ontario
www.recycleyourelectronics.ca
from landfill so the hazardous components can’t leach into the soil and affect water quality. As well, many electronic products contain valuable materials that can be reclaimed and recycled into the manufacturing of next-generation electronics or other goods and materials. The good news is that there are safe and environmentally friendly alternatives for businesses that want to properly manage their unwanted items.
Explore your options. A growing number of provinces have implemented electronic waste diversion programs that allow businesses to drop off items at an approved site or collection event for reuse, refurbishment or recycling. Ontario Electronic Stewardship, for example, has more than 600 collection sites. Use the links below to find drop-off locations near you. Ask questions. Make sure the option you
choose is approved by your respective provincial program. To save costs, some collectors may ship e-waste to landfill sites in jurisdictions where environment and health and safety regulations are virtually non-existent, so be sure to verify upfront how items are handled.
Establish an e-waste management plan.
Small businesses should consider creating an end-of-life plan for their electronic assets. That way, employees know what to do with unwanted computers, for example.
British Columbia www.esabc.ca
Alberta
www.albertarecycling.ca
Saskatchewan www.sweepit.ca
Nova Scotia
www.ACEstewardship.ca
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For more information on electronics reuse and recycling for business, please contact Ontario Electronic Stewardship at 1-888-646-1820 or business@ontarioelectronicstewardship.ca.
INVEST IN AMERICA
USA:
OPEN FOR BUSINESS Expanding your business depends on making smart choices ranging from product innovation to supply chain management to financing options. Invest in America at the United States Department of Commerce’s International Trade Administration (ITA) is working to make one decision a little easier: where to invest. As the largest single country economy in the world, the United States boasts an open business climate, strong intellectual property rights (IPR) protections, and an unparalleled labor force, all of which serve to support new and expanding investment opportunities.
T
he already vibrant trade and investment relationship between the United States and Canada demonstrates how valuable the long-lasting ties between the two economies really are. The latest U.S. Bureau of Economic Analysis (BEA) data indicates that total Canadian direct investment to the U.S. exceeded $8.4 billion in the third quarter of 2010. In 2009, almost 10% of total foreign direct investment (FDI) into the United States originated in Canada – worth $25.8 billion, making it the fourth largest source of foreign investment in the United States. Similarly, even with global trade flows down in 2009, Canadian exports to the U.S. totaled $228 billion and imports from the United States to Canada totaled $205 billion. Even with the data to showcase the strong bilateral ties between the United States and Canada, the dynamics of doing business in another market weigh far more when considering a business location decision. There is a reason that the United States ranks an impressive fifth in the World Bank’s Ease of Doing Business ratings. The U.S. government unequivocally supports foreign direct investment into America as a vital part of its economy. In 2008, FDI in the U.S. led 48
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to $55 billion of reinvested earnings in the U.S. economy and supported $404 billion in annual wages and salary. Moreover, American affiliates of foreign firms generated almost 19% of U.S. exports in 2009. Fulfilling what might be the most important consideration for foreign investors, the United States takes its commitments to national treatment standards seriously and provides foreign investors fair and nondiscriminatory treatment as a matter of policy and practice. In nearly all cases, the treatment of foreignowned companies is identical to that of domestically-owned firms. Open access to the world’s most dynamic market is among the most compelling reasons more companies explore the American market for establishing a business each year. They also value a rigorous system of protection for their intellectual property rights, and an educated and creative workforce. Creativity and innovation drive the U.S. economy. To reward and safeguard this creativity, the United States has developed a strong IPR regime and is a leading proponent of IPR enforcement across borders. The U.S. Patent and Trademark Office (USPTO)
granted nearly 192,000 patents in 2009, of which more than half originated outside the United States. In fact, 4,393 of these patents originated in Canada. Whether searching for skilled employees early in their careers or qualified managers with proven industry and market experience, international companies will find highly educated, productive, and diverse U.S. professionals to help achieve their business goals. FDI in the U.S. supports nearly 5.6 million American jobs. Often, these jobs exist in specialized or technical functions for multinational companies. The U.S. accounts for 33% of global R&D expenditures, amounting to $398 billion in 2008, with almost 10% coming from foreign-based multinational corporations. The United States is also home to 15 of the top 20 universities in the world, as ranked by the Times Higher Education report for 2010-2011. Invest in America is the primary U.S. Government mechanism to support and promote foreign direct investment in the U.S. We welcome inquiries from foreign investors seeking information about investing in the U.S. and work to connect investors with U.S. state contacts through U.S. GovernorDesignated State Investment Officials. As part of the ITA, we are a local resource to
you through our global network of offices, including Commercial Service Offices in Calgary, Montreal, Ottawa, Toronto, and Vancouver. We also work with domestic U.S. government agencies to address policy issues that concern international investors. Companies expand into new markets to capture value across business functions ranging from product development to distribution. Making the decision to expand your operations is never simple. The long established relations between the U.S. and Canada, alongside the attractive investment climate in the U.S., helps eliminate many barriers to businesses locating in the U.S. Let us help you decide how to invest in your company by investing in America.
Invest in America is pleased to work with the Business Guide to support our mutual trade and investment goals. We hope the Business Guides proves useful to Canadian companies exploring direct investment opportunities in the United States. For more information, please visit: www.investamerica.gov
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INVEST IN AMERICA
Your Gateway to the
GLOBAL MARKETPLACE We offer a single point of access to the resources you need to expand or locate your business close to Montreal and Toronto in New York’s North Country Clinton, Essex, Franklin, Jefferson, Lewis and St. Lawrence counties.
H
ighly qualified labor, low-cost plant facilities, and good access to markets – New York’s North Country offers you a complete and cost-effective package, with total production costs significantly lower than other competitive locations. The North Country has emerged as a region ideally situated to serve both Canadian and U.S. markets. Located between major metropolitan centers in the Northeastern United States and Canada, we've got a lot to offer new and expanding businesses. We're connected when it comes to air, water and surface transportation – and our telecommunications networks provide the state-of-the-art capabilities needed by today's growing businesses.
Business Expansion Financing
We offer companies a full range of financial resources to support business expansion, and function as your single point of contact for local, state and federal financing programs.
Tax Incentives
Depending on specific financing arrangements, firms locating in New York's North Country may benefit from either property tax abatements or payment-in-lieu-of-tax agreements which can significantly reduce start-up costs. Employee training grants and assistance are readily available. We help companies take advantage of business opportunities and work with them to achieve long-term success.
The North Country has long been known as one of the most beautiful natural environments in the U.S. Now, it is also an extraordinary business environment.
Located close to major metropolitan centers in the Northeastern United States and Canada, we've got a lot to offer new and expanding businesses.
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Call Joanne Knowlton at 518-563-3100 or email her at jvknowlton@thedevelopcorp.com and discover how we can help your business do business.
INVEST IN AMERICA
Make Niagara County, New York
YOUR U.S. LOCATION Niagara is a world-renowned address. It is a thriving and lively bi-national region that is home to two million people. For well over 200 years, our region has been an important point of commerce between the United States and Canada.
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he Niagara County Industrial Development Agency is part of the Niagara County Center for Economic Development (NCCED), which provides comprehensive business services under one roof. Manufacturing, warehouse/distribution and business service companies can qualify for below-market-rate loans and tax abatement programs to expand or locate facilities within Niagara County.
expanding into the U.S. A prime example is Saksco Gourmet Basket Supplies, who built a new warehouse facility in Wheatfield. The company had been selling in the United States and started out in leased space. Saksco’s rapid growth necessitated the construction of a state-of-the-art 23,000 square foot warehouse/distribution center in Vantage International Point.
A program called Empower Niagara provides blocks of low cost electricity to local industries and those Canadian companies wishing to locate a facility in Niagara County. This low cost power incentive can also be part of an overall incentive package through the NCCED.
In recent years, the NCCED has come to realize that more and more Canadian companies need to have a U.S. location for various business reasons. Among these reasons is the fact that it is easier to service their U.S. customers; problems and delays at the border can be eliminated, and some U.S. customers look more favorably on a company with a U.S. presence. Niagara County is the closest cross border point to the GTA and this has always made us a popular spot for Canadian companies to locate. But we want your decision to be based upon more than a convenient location. We want Niagara County to be a GREAT place for you to do business, to grow, and to prosper.
The Center is located just minutes over the border in the Vantage International Point Industrial Park in Wheatfield, New York. Vantage International Point, which offers some of the most affordable land in the area, is just one of a number of industrial parks that meet all industrial and zoning criteria for the location and expansion of manufacturing and light industrial, warehouse and distribution facilities. The professional staff at the NCCED has assisted many Canadian companies in 54
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For more information on the assistance available through the Niagara County Center for Economic Development, please call 716-278-8760 or visit us at nccedev.com.
INVEST IN AMERICA
The right site is waiting for you in
GLOUCESTER COUNTY L ocated just minutes from Philadelphia, Gloucester County New Jersey
has grown leaps and bounds over the last three decades. Just some of the advantages of relocating your business to Gloucester County include a great location that is within 5 miles of three marine terminal facilities, a rich agricultural history and a superior infrastructure, quality of life, and workforce.
A
griculture is a tradition in Gloucester County making it the hub of food processing in the South Jersey region. Gloucester County has more than 100 producing farms and within a 50 mile radius there are more than 600 food manufacturing companies at work. Chelton House salad dressings, UTZ snack foods, and US Food Services are just a few of the national product lines that are manufactured and distributed right here in Gloucester County. Gloucester County is proud that the food industry represents over 12,400 jobs in food manufacturing, preparation and distribution. There are over 650 food related businesses, and that number does not reflect the agriculture, agri-tourism and growing wine industries. The County’s Economic Development Team has targeted this niche industry and will continue to help encourage its growth. Just recently, Cento Fine Foods and Rastelli Foods have decided to expand their headquarters. In addition, Schar USA, an international gluten free food company, is locating their headquarters with a $15 million capital investment in Logan Township along one of our most traveled corridors. The Strategic location of Gloucester County continues to be its major asset, giving it a competitive advantage in the region. With superior infrastructure that is constantly being 56
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upgraded, food manufacturing companies can distribute goods to 40% of the nation’s population within a day’s drive. Located half way between New York City and Washington D.C., Gloucester County has 21 business and industrial centers encompassing over 6,000 acres and is home to the second largest industrial park on the eastern seaboard, Pureland Industrial Complex. Gloucester County’s concentration of food manufacturing companies is growing and so is its focus on education and workforce training. A highly skilled workforce and diverse industrial base makes the region an attractive destination for businesses to call home. Come and explore Gloucester County, New Jersey were you can be close to everything, far from it all. The right site is waiting for you in Gloucester County, New Jersey.
Thinking about relocating? To learn more about Gloucester County visit our website at www.gloucestercountynj.gov, call the Gloucester County Department of Economic Development at (856) 384-6930 or email Lisa Morina, Director at lmorina@co.gloucester.nj.us
CANADA’S BUSINESS
Small Business Ontario
POWER TO THE PEOPLE In Ontario in 2009, there were more than 379,000 small and medium-sized businesses with employees on their payroll—that’s 2.8 million Ontarians employed by these enterprises. And because small businesses play such a significant role in the economy, the province has taken a number of important steps to encourage their success. “We have chosen to believe that if we empower our business people,” said Minister of Revenue, Sophia Aggelonitis. “People like you will invest more, will produce more and you will create more jobs for Ontarians.”
A
key step is Ontario’s Tax Plan for Jobs and Growth, which provides tax relief of more than $4.8 billion to businesses over three years and includes the harmonized sales tax (HST) that began July 1st. “The Harmonized Sales Tax is one part of a comprehensive package that includes significant tax cuts both for businesses and for families or individuals,” said Aggelonitis. “And this tax reform, in turn, is part of our fiveyear Open Ontario plan to create jobs, grow our economy, and build a stronger Ontario.” Professor Jack Mintz, head of the School of Policy Studies at the University of Calgary and former chief executive of the C.D. Howe Institute, estimated that Ontario will accumulate almost 600,000 net new jobs over the next 10 years because of the lowered tax burden on business investment. These tax cuts and the HST reduce the tax
burden for new small business investment by more than half, from almost 29 per cent in 2009 to just over 13 per cent in 2010.
HST benefits for businesses Under the HST, most Ontario businesses can now claim an additional 8 per cent in input tax credits for the sales tax they pay on many of their business purchases and capital investments previously taxed under that provincial sales tax (PST), thereby reducing the cost of doing business. In addition to these input tax credits, the 2009 Budget announced targeted tax measures that, together with Ontario’s Tax Plan for Jobs and Growth, is providing more than $1 billion of tax relief to small businesses over three years, beginning in 2010-11. And to help small businesses adapt their point of sale and accounting systems for the HST, Ontario provided a one-time Small Business Transition Support payment for $300 up to $1,000, which was mailed out late October and is based on taxable revenues for a 12-month period. Approximately 800,000 Ontario businesses qualified for this support totaling $400 million. ...continued on page 60
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Investment in Ontario’s future workforce To enhance job skills, Ontario has invested in programs that create jobs in vulnerable communities and will add 20,000 new spaces in colleges and universities in 2010-11. Some of these programs include: • The enhanced refundable tax credit rates for small businesses that hire co-op students and apprentices. • The refundable Ontario Innovation Tax Credit, which benefits companies that conduct scientific research and experimental development.
For more information on Ontario’s Tax Reform Package and how the HST benefits small businesses, visit www.ontario.ca/hstready
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Quick HST facts • Small businesses with total taxable sales of $30,000 or less are not required to register to collect the HST in Ontario. • The reduced administration and compliance costs (as a result of moving from two sales taxes to one) are expected to save Ontario’s business community more than $500 million per year. • Ontario permanently cut corporate income taxes for small businesses this year: ◦ The small business corporate income tax rate has been reduced to 4.5 per cent from 5.5 per cent. ◦ The small business deduction surtax has been eliminated making Ontario the only province in Canada to eliminate this barrier to growing small businesses. ◦ Fewer small- and medium-sized businesses are paying the Corporate Minimum Tax (CMT), and the CMT rate is cut to 2.7 per cent from 4 per cent in 2010.
CREDIT CONTROL
Small business owners use credit cards to enable company growth
SAY GOODBYE TO THE SHOEBOX It used to be that as a small business entrepreneur, you and your staff kept receipts for every purchase made to benefit your business, and then turned them in to an accountant for tracking and reimbursement - sometimes in a shoebox! Getting an expense cheque at the end of the month was a bit like winning a lottery - a lump sum deposit that could be turned into more goods and services to grow your company.
T
he downside of this method would be for the accountant - the person you trusted to separate the receipts, classify them, track expenses, pay taxes and help set budgets. Oh, and don’t forget the paperwork that goes with all that!
Fast track to success
With the advent of software for small businesses that aids the accountant’s job, come developments in small business banking that encourage entrepreneurs to streamline their daily operations. Using a company credit card enables growth, by meeting growing credit needs as a business expands. This has become commonplace, as banks strive to keep customers happy. A small business owner using a business credit card instead of a personal one provides a newly established company the opportunity to build credit with his or her chosen financial institution. Doing this builds the relationship, so it grows as banking needs change. Not only that - tracking business expenses becomes easier, as credit card statements 62
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for small businesses are itemized for each transaction, with records archived online, totally separate from personal banking records.. No more shoebox!
Outside the box
Once you have made the decision to use a business credit card instead of your personal one, you have begun a credit relationship with your financial institution, and as your business and credit needs grow, so should your respect for one another. The path to business growth is lined with your borrowing history. Your business credit allows you to purchase supplies, manufacture merchandise, pay suppliers, earn rewards, track business expenses independently of personal expenses, track cash flow and provide fast access to capital, should you need it. So, the question remaining is which card to choose to best suit your business’s needs? You’ll need to decide what kind of spending limit you need for your business, and compare interest rates. What about the annual fee?
Is it more economical to take a card with higher interest rates that doesn’t carry an annual fee? Does the credit company offer online account management? Does the card offer any features, such as various insurances? Is there a rewards program, and how is it structured? Can you combine the points from all business cards and personal cards into one account? If it’s travel points you are interested in to make business travel easier, you’ll need to compare those programs, also. Will the card provider allow you to use your card, without question, overseas? Will your points expire? Can they be used for personal travel, or must they always be applied to your business? If they can be combined for personal travel, are there blackout periods
during which you and your family couldn’t access the points?
Keep it growing
Whatever card you choose for your small business, the benefits will help your business grow, by building business credit, tracking expenses and getting something back. It’s important to remember that reward points alone can't justify credit card ownership. Purchase security, extended warranty insurances and zero liability fraud protection are valuable features that can add value to existing reward programs. So, get growing with credit - and say goodbye to the shoebox full of receipts!
HISTORY OF A CREDIT CARD According to the Oxford Canadian English Dictionary, a credit card is a small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit. The use of credit cards originated in the United States during the 1920s, when individual firms, such as oil companies and hotel chains, began issuing them to customers. However, references to credit cards have been made as far back as 1890 in Europe. Early credit cards involved sales directly between the merchant offering the credit and credit card, and that merchant's customer. Around 1938, companies started to accept each other's cards. Today, credit cards allow you to make purchases with countless third parties. THE BUSINESS GUIDE
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