CONNECT 2020 - Spring Edition by Mississauga Board of Trade

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THE VOICE OF BUSINESS IN MISSISSAUGA

VOLUME 15 ISSUE 2 SPRING 2020

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CONTENTS ARTICLES

VOLUME 15 ISSUE 2 | SPRING 2020 11

Moving Your Business from Operating as a Sole Proprietorship to a Corporation

12 The COVID19 Pandemic Required Governments

at all Orders to Step Up to the Plate >

If You Love What You Do, Why Should You Make Plans to Leave?

Understanding the Family-Business

Top 5 Deductions for Small Businesses

Meet the Makers of Eco-Max

Business Success through Personal Growth

The Million-Dollar Differences between Entrepreneurs & Intrapreneurs

Discover Your Sustainable Corporate Landscape

Can You Dispose of Corporate Assets by a Will?

42 The Importance of Keeping Your

Antivirus Software Up to Date >

The Alchemy of Fear

< HER WORSHIP

MAYOR BONNIE CROMBIE ANNUAL ADDRESS PAGE 41

IN THIS

ISSUE

Chair’s Message

Events at a Glance

President’s Message

MBOT Referal Program

Upcoming Events

New Members

The Political Round Up

Affinity Savings & Discounts

FROM OUR CHAIR

COVID-19 As I write this in mid-April 2020 I cannot predict with any certainty how COVID-19 will evolve and the extent of the impact it will have on our community and our local and national economies. COVID-19 is a black swan event that has largely taken the world by complete surprise. As of April 16, 2020, there are over 2,000,000 cases worldwide and we have seen over 139,000 deaths with 440,471 recoveries. More than 211 countries are now reporting positive cases of COVID-19 as the virus has spread globally, impacting communities, ecosystems, and supply chains around the world. One thing, however, appears certain, this event will have global economic and financial ramifications and our economy will suffer, at least in the short term. We recognize that even in the early stages of this pandemic the impact on certain areas of the economy such as tourism, non-essential retail, personal services and home-based services, has been significant and is likely to worsen. That said, as your Board of Trade, we remain more committed than ever to assisting businesses in Mississauga as they tackle the impacts of this global pandemic. We have mobilized and will continue to mobilize our resources to provide you with timely and relevant information that can assist you in addressing the challenges posed by COVID-19 in your workplaces and ensuring the continued viability of your businesses. MBOT is here to inform and equip businesses with the most important and up-to-date information to ensure we are all adequately prepared to protect our families, our community and our businesses. At a recent virtual roundtable meeting with the Mayor and councillors of the

– The Black Swan

City of Mississauga, representatives of MBOT and other local business organizations shared some of the key concerns facing business owners in Mississauga: • The impact that full and partial closures will have on their longterm sustainability • Local and global economic impacts including trade, supply chain continuity and access to products and services • Human resources implications and; • Tax payment deferral for business while this crisis continues The federal government has announced that it will provide up to $107 billion in direct support to Canadian workers and businesses, including $52 billion in direct support payments and $55 billion in tax deferrals, to meet the liquidity needs of Canadian businesses and households. Of the direct support, up to $24 billion is allocated to cover CERB (Canada Emergency Response Benefit) for people who cannot work because of illness, self-isolation, caring for a sick person or child-care issues, contractors, freelancers and gig economy workers, who otherwise would not be covered under existing EI rules. Two key types of assistance are being made available for small businesses: a loan program and two wage subsidies. The first wage subsidy known as TWS (Temporary Wage Subsidy) will pay 10 per cent of salaries, from March 18, 2020 to June 19, 2020, for some small businesses that keep workers on the payroll. This program is currently capped at $1,375 per employee and $25,000 per employer. The second wage subsidy known as CEWS (Canada Emergency Wage Subsidy) will cover

SUSANNE BALPATAKY 2020 MBOT Chair Speigel Nichols Fox LLP

CONNECT | 2020 ISSUE 2

FROM OUR CHAIR

75 per cent of salaries for companies that experience a 15 per cent (year over year) drop in revenue in the month of March and a 30 percent (year over year) drop in revenue in the months of April and May. This program will be retroactive to March 15, 2020 and in place until June 6, 2020. The CEWS is capped at $847 per employee per week but has no overall cap per employer. The federal government has also put in place a 100 per cent refund for certain employer-paid contributions to EI, CPP and QPP for the period that the company qualifies for the CEWS. The federal government has also launched the Canada Emergency Business Account that allows small and medium-sized businesses to access an interest-free loan of up to $40,000 through their own financial institutions. Although these measures are welcome and will provide some relief to small business owners, they arguably fall short of what businesses need to keep

CONNECT | 2020 ISSUE 2

workers on staff and prevent largescale layoffs. We continue to work with our partners at the City and with both the federal and provincial governments on options and tools to help businesses and their employees through this crisis and to ensure that the proper economic supports are provided to you. I urge you to check the News Room section of our website at www.mbot. com for excellent podcasts and regular updates on steps being taken by all levels of government to help protect businesses from the effects of this pandemic and for tools business owners can use in navigating the myriad of issues they are now confronted with. Although the situation appears dire, we must not lose sight of the fact that we live in a country where, from both a healthcare and a financial perspective, our government is taking aggressive and necessary steps to deal with the virus and its economic impacts and

we are better positioned than many other countries to weather the storm. The advantage of living in an advanced technological age is the speed at which research and vaccine development can occur. Potential treatments and the first trial of a vaccine are already underway, which is encouraging news. We have learned valuable lessons both from the SARS outbreak in 2003 and from the 2008 economic crisis. Those lessons will now prove to be invaluable. It is important to stay positive and take comfort from our past resilience. We have endured other significant life disruptors such as the financial meltdown of 2008 and the H1N1 pandemic in 2009. Know that we will also get through this and emerge stronger than ever. ď&#x20AC;ź

2020

BOARD OF DIRECTORS

THE VOICE OF BUSINESS IN MISSISSAUGA

EXECUTIVE COMMITTEE: • • • • • • • •

Susanne Balpataky, Speigel Nichols Fox LLP | Chair Ken Tencer, Syderworks | Vice-Chair Lucie Shaw, Nurse Next Door | Vice-Chair Jim Molyneux, MNP | Immediate Past Chair Mary Ann Wenzler-Wiebe, BDC Steve Rhone, Weston Forest Products Ellen McGregor, Fielding Environmental David Wojcik, MBOT-President & CEO (Ex-officio)

DIRECTORS: • • • • • • • • • •

France Dube, AstraZeneca Steve D’Agostino, Avega Parveen Dhupar, BTI Brand Innovations Inc. Sameer Sharma, Crown Hotels Adam Nowak, Gallagher Insurance Eileen Waechter, Greater Toronto Airport Authority Linda Kern, Kern Group Amy Delisle, Keyser Mason Ball, LLP Janet Wardle, MHI Canada Anne Liisa Longmore, Sheridan College

Established in 1961, Mississauga Board of Trade proudly serves as a the Chamber of Commerce for the sixth largest city in Canada – the third largest city in Ontario. Mississauga Board of Trade represents all businesses in Mississauga. MBOT’s large, diverse and active membership has made us one of the most vibrant business associations in Canada. As the “Voice of Business” we advocate on policy issues that impact local business at all levels of government, and are influential in helping to shape policy decisions. MBOT also offers a wide variety of valuable business services and professional development programs, networking events and marketing opportunities, to help business grow, prosper, and get connected. PUBLISHER: David Wojcik President & CEO ceo@mbot.com EDITOR: Kelsey Lusk Communications Editor klusk@mbot.com DESIGN & LAYOUT: Katika Integrated Communications Inc. www.katika.com ADVERTISING INQUIRES: advertising@mbot.com PRINTING: Katika Integrated Communications Inc. www.katika.com

ADVERTISING INQUIRIES:

Sonia Ojha at sojha@mbot.com Hiliary Jewer at hjewer@mbot.com Solange Barcena at sbarcena@mbot.com

EDITORIAL INQUIRIES:

Kelsey Lusk klusk@mbot.com

PHOTO CREDIT: John Goldstein, Andrea Marchant

ADVERTISERS INDEX Credit Valley Conservation Exit Planning Group Insuranceland KMB Law

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mbotontario © 2020. All rights reserved. No part of this publication may be reproduced or copied in part or as a whole, without the prior written permission of the Mississauga Board of Trade (MBOT). Advertising content and the comments, views and opinions expressed herein are those of contributors and do not necessarily constitute endorsement by MBOT. Publication Agreement Number 40012444.

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FROM OUR PRESIDENT

The Post COVID

REVOLUTION On March 17, 2020, our world stopped. That was the day, the Premier of Ontario issued his first emergency order which put shutters on thousands of small businesses across the province. But it was only for 14 days. We could handle that. Then, on April 14th, the other shoe dropped, extending the emergency order to May 12th. Even with municipal, provincial and federal financial assistance pouring in, it hasnâ&#x20AC;&#x2122;t been enough to save everyone. On April 2nd, we asked our members how COVID-19 had changed the way they do business. 23.6% of respondents said they had ceased all operations.

DAVID WOJCIK

President & CEO Mississauga Board of Trade

When we asked how long the post COVID business recovery would take, 6.3% said, they will never recover and 67.9% indicated it will take them 6 months to 1 year.

So what will the post COVID business environment look like? >>>

CONNECT | 2020 ISSUE 2

FROM OUR PRESIDENT

THE WORKPLACE

THE TECHNOLOGY

The workplace may dramatically change. Leaders are assessing the need for their current physical footprint. Asking the question; if we can work remotely during a crisis, why not permanently? This will require, in some cases a paradigm shift in the way we work and the way we measure productivity. Most leaders will need to shift from “needing” to see Sally and Billy at their desk to monitoring outputs rather than traditional 9 to 5 inputs. Leaders must focus on the completion of tasks and projects within deadlines and not on the amount of time it takes. Office space may shrink or be utilized in a different way. More hotelling and less permanent residence. The term “flex” office will be more in line with the Post COVID workplace.

Leaders must assess their own technological infrastructure. Updating laptops, cell phones and tablets. Uploading files from local servers to the cloud. Investing in apps and web based services. Assessing the tools the team needs, to work remotely within a “flex” office environment. Establishing protocols, for use with these new corporate assets.

THE STAFF MEETING The number of conference calls and virtual video meetings have skyrocketed. Zoom, Microsoft Teams, Go To Meeting and their webinar cousins, have all had their technological limits stretched under enormous utilization. Prior to COVID, only the most progressive companies used these tools as part of their regular business practice. Now they are as common as the cell phone. The luddite user, has been thrust, into combing their hair and putting on a decent shirt or blouse to take a meeting. They can’t hide behind the conference bridge, phone call any longer. The technology has been made so easy to use, it makes it very difficult for a participant to say, I can’t turn on my camera……unless they don’t have a computer with a camera and that’s a whole different conversation.

CONNECT | 2020 ISSUE 2

THE PSYCHOLOGY Returning to work post COVID-19 may require some emotional help. Especially if the plan includes the aforementioned changes. Those who have struggled to work from home and are looking forward to returning to “normal”, may have difficulty adopting to the Post COVID workplace. Leaders will need to engage human resource and mental health professionals to help them understand what their teams are experiencing and how to help the team adjust.

THE CONCLUSION Any business leader who believes the Post COVID “next normal” will be the same as the old, is setting themselves and their organizations up for a rude reality check. If we ever return to the “good old days”, it will be years from now. So, what can we do to prepare? Engage in conversation with your colleagues, listen to your team and tap your professional advisors for the intel from their network. Today we set the course for how we will be remembered by the next generation of leaders. How will they view 2020 and speak of the Post COVID revolution. Let’s set a course for success and create a legacy for them to reflect on with pride. The Post COVID journey begins with you, with us……..today. 

OUR EVENTS HAVE BEEN POSTPONED DUE TO COVID-19

MEMBER TALKS

Moving Your Business from Operating as a

SOLE PROPRIETORSHIP to a

CORPORATION

There are three main vehicles through which to operate a business: a sole proprietorship, a partnership and a corporation. Establishing a sole proprietorship is relatively costeffective and accordingly, an individual may choose to start to operate their business as a sole proprietorship and continue to do so until such time as the potential tax and liability considerations encourage them to make the move to separate from their business, through the incorporation process. At that time, however, the sole proprietor has collected and accrued business assets which are necessary for the business to continue to operate through a corporation. Such business assets may include, but are not limited to: equipment, inventory, supplies, customer lists and/or goodwill. Those business assets need to be transferred to the corporation. That transfer is a taxable event which if not structured correctly, can incur unforeseen tax liability.

With appropriate tax advice from a chartered professional accountant or lawyer who practices tax, this transfer of the business assets of the sole proprietorship to a corporation may be able to occur on a tax-deferred basis under Section 85 of the Income Tax Act (Canada) (the “Act”). A transfer on a tax-deferred basis under the Act requires recognition of the cost paid by the sole proprietor for the assets being transferred, consideration to the individual (which must included shares of the corporation) and legal documentation including but not limited to a legal agreement setting out the terms upon which the transfer from the sole proprietorship to the corporation will occur.

This legal documentation is essential to definitively assert the value being transferred from the sole proprietorship to the corporation and provide evidence to support the intention of the parties should the transfer be challenged by a taxing authority.

KEVIN FERNANDES Associate, Corporate/ Commercial KMB Law CONNECT | 2020 ISSUE 2

We at KMB Law work directly with your tax accountant or tax lawyer and are experienced at drafting the appropriate legal documentation required to effect a transfer from a sole proprietorship to a corporation, in a cost effective manner than enhances value for you, the client. Should you have any questions regarding this or any aspect of your business, please do not hesitate to get in touch – we are here to help. 

EDITORIAL

The COVID19 Pandemic REQUIRED GOVERNMENTS AT ALL ORDERS TO

Step Up

With the enormous impact of COVID19 on Canada, all orders of government were required to develop support programs, financing and services to support individuals Canadians as well as businesses. This is the most significant economic event to hit Canada since the Great Depression and it has taken its toll on businesses in all sectors and of all sizes across the country. Governments have endeavoured to react to the impacts of this pandemic through many different programs that are available for business.

GOVERNMENT OF

CANADA

The Federal Government began its support program focusing mainly on individuals that had been impacted or lost jobs as a result of COVID19. The government increased the Child Tax Benefit, provided a special Goods & Services Tax (GST) payment, gave extra time to file Income Tax returns and asked the banks to provide mortgage support to Canadians. It then established the Canada Emergency Response Benefit (CERB) which provides up to $2,000/ month for individuals that have lost all income as a result of COVID19. Selfemployed persons and contractors are eligible for this program as well so long as they can demonstrate they earned at least $5,000 in income in 2019. For businesses, the Government of Canada established the Canada Emergency Wage Subsidy (CEWS) program which provides a 75% wage subsidy for continued employment up to a wage of $58,700 for a maximum payment of $847 per week. The program was back dated to March 15, 2020 and is

set to expire, unless renewed, on June 6, 2020. There is also a 10% wage subsidy program with fewer restrictions and the Government extended the federal work sharing program. It also deferred the timeline for payment of GST and corporate income taxes. As well, the Federal Government established the Canada Emergency Business Account which provides loans backed up by the Government of up to $40,000 interest free for one year through the businessâ&#x20AC;&#x2122;s local bank. The business must have payroll of at least $20,000 and maximum of $1,500,000 in 2019. For other businesses, the Federal Government established the Business Credit Availability Program administered through the Business Development Bank of Canada (BDC) and the Export Development Corporation (EDC). There are various criteria for these loans and financing arrangements so businesses should consult the organizations directly. The Government of Canada has also announced directed support to certain sectors of the economy particularly hard hit by the COVID19 pandemic.

More details and updates on these programs can be accessed at: https://www.canada.ca/en/departmentfinance/economic-response-plan.html.

GOVERNMENT OF

ONTARIO

The Government of Ontarioâ&#x20AC;&#x2122;s support program for businesses affected by the COVID19 pandemic mainly revolve around payment deferral programs for various taxes which would normally be paid to the Government. Between April 1, 2020 and August 31, 2020, the Province will not apply any penalty or interest on any latefiled returns or incomplete or late tax payments under select provincially administered taxes, such as Employer Health Tax, Tobacco Tax and Gas Tax. The Government of Ontario has delayed the June 30, 2020 education property tax remittance from municipalities allowing them to defer payment of property taxes by businesses. Workplace Safety & Insurance Board (WSIB) premiums have been deferred for up to six months

CONNECT | 2020 ISSUE 2

EDITORIAL

to the Plate and the Province has increased the exemption for the Employer Health Tax (EHT) for 2020 from $490,000 to $1 million. As an employer, this means relief of up to $9,945. From March 24 to May 8, 2020, residential, farm and small business time-of-use customers will get the lowest rate — also known as the offpeak price — 24 hours a day. That means you will pay 10.1 ¢/kWh no matter what time of day you use electricity. As well, the Provincial Government has made changes to the Employment Standards Act to protect jobs for people affected by COVID19. Businesses would be well advised to consult those before pursuing any actions with their employees. Perhaps the most significant act that has affected businesses in Ontario has been the Emergency Order and shot down of all non-essential businesses in the Province. For many businesses this means their income has reduced to zero as they are completely closed while other businesses struggle to have their employees continue to work, where possible, from home. The list of Essential Workplaces, which is subject to change, is available at: https://www.ontario.ca/page/ list-essential-workplaces?_ ga=2.19082748.554776955.15870393471026373343.1587039347. More information and updates on the Government of Ontario’s actions are available at: https://www.ontario.ca/ page/covid-19-support-businesses.

CONNECT | 2020 ISSUE 2

CITY OF

MISSISSAUGA The City of Mississauga has taken a number of important steps to support both individuals and businesses deal with the COVID19. Property tax payments have been delayed for 90 days from the due date as has the storm water charge (through the Region of Peel utility bill), the remittance of the Municipal Accommodation Tax (MAT) which hotels charge on overnight stays has been deferred for 90 days. The City also is providing free transit and suspending parking offences. The Mississauga Economic Development Office has established a dedicated website for businesses for up to date information on their programs and services on the COVID19 pandemic at the local level. It can be accessed at: https://www.thefutureisunlimited.ca/ covid-19/. The City of Mississauga has also closed parks and most open space areas and is aggressively imposing fines on people not obeying the law or social distancing requirements. Community Centres and other public buildings are also closed until further notice.

REGION OF

PEEL

The Region of Peel level of government works alongside the local municipality on administering programs and

services for Mississauga residents and businesses. The Region of Peel issues and collects the water and wastewater utility bills and it includes the Mississauga storm water tax. The Region has approved a deferral of the payment of these bills for 90 days from the due date along with the local municipality providing the regional portion of the property tax bill for 90 days as well. The Region of Peel Public Health Unit is the primary go to place for updates and information as it relates to COVID19, local testing and treatment and support services. Their website can be accessed at https://peelregion.ca/coronavirus/.

SUPPORTING THE

COMMUNITY

Businesses and individuals that are able are encouraged to support local organizations that are helping during this very trying time of COVID19. Here are a couple of that you may wish to consider supporting. The Mississauga Food Bank https://www.themississaugafoodbank. org/covid19donate/ Trillium Health Partners (Mississauga hospitals) https://trilliumgiving.ca/donateppe/?utm_source=Bing&utm_ medium=Display&utm_ campaign=Covid19 

The

THE POLITICAL ROUND UP

political

ROUND UP

Local & Regional THE MISSISSAUGA BOARD OF TRADE IS THE VOICE OF BUSINESS AT THE CITY OF MISSISSAUGA AND REGION OF PEEL LEVELS OF GOVERNMENT.

MISSISSAUGA STORM WATER CHARGE The City of Mississauga continues to charge a levy to all residential and commercial properties based on the size of its hard surface footprint. This disproportionately affects businesses and partially subsidizes homeowners. City Council has approved an increase to the levy in effective April 1, 2020 of 2% bringing the charge to $108.20 per billing unit up from $106.10 in 2019. However, the City of Mississauga does have a credit program for commercial properties so that they can be rebated up to 50% of the levy if they perform

improvements on the property that reduces or eliminates the flow of storm water into the municipal system and improves the quality of the storm water (reduces pollutants). The Mississauga Board of Trade is also working with both the Credit Valley Conservation and Toronto Region Conservation Authorities to help larger property owners on ways to retrofit their properties in order to qualify for the credit program. A proposal is being developed to the Federation of Canadian Municipalities Green Fund which will hopefully result in some support in 2020. MBOT is also asking the City of Mississauga to consider adopting the

CONNECT | 2020 ISSUE 2

THE POLITICAL ROUND UP

City of Philadelphia model which has a much higher credit (up to 80%) and a grant program for property owners to offset the capital costs of storm water retrofits. Credit Valley Conservation is working on a storm water program in the Southdown District of Mississauga bringing 13 property owners together on a joint storm water management program. This could be a significant turning point in the storm water program through the use of the Drainage Act and property owners sharing resources and property access. Finally, City staff are working on a report to go back to Mississauga City Council in the spring of 2020 on improvements to the programs that will entice more commercial property owners to perform on site retrofits in order to qualify for the credit program. Increasing the level of the credit to improve the capital pay-back would be a welcomed improvement to the program. To better understand and qualify for the rebates, please go to: http://www.mississauga.ca/portal/ stormwater/charge.

MUNICIPAL ACCOMMODATION TAX/TOURISM The City of Mississauga introduced a four per cent Municipal Accommodation Tax (MAT) effective April 1, 2018. Council approved the new tax which will apply to stays for a continuous period of 30 days or less in a motel, hotel, lodge, inn, bed and breakfast, dwelling unit or any place that provides accommodation. Online private short-term rentals such as Airbnb and HomeAway are also subject to the MAT.

CONNECT | 2020 ISSUE 2

Mississauga City Council has approved a model for Tourism Mississauga which will be owned by the city but operated by a Board of Directors appointed by Council. It is expected that this new entity will be up and operating by the end of May and can begin the work of marketing Mississauga as a tourist destination. It will have a budget of over $5 million per year and the City has already accumulated over $10 million which will be transferred over to the new agency.

“...this new entity will be up and operating by the end of May and can begin the work of marketing Mississauga as a tourist destination.” It is estimated that this tax will generate over $10 million per year of which 50% must be dedicated to Tourism Mississauga. MBOT continues to advocate for full transparency for the use of this money and for full involvement of the industry stakeholders (hotels/motels) in determining where MAT money should be spent. The City has already begun to spend the non-restricted portions of the MAT on things like supporting local festivals and special events. Mississauga City Council also recently approved allocating $1 million for the building of an Avro Arrow model which will be erected in Malton. MBOT would prefer to see a plan on the allocation of this money rather than one-off ad hoc activities and that they demonstrate that they generate tourists and overnight stays in Mississauga. MBOT is also working with its partner association the Tourism Industry Association of Ontario to advocate for regulatory changes at the Province that will tighten up the rules and eligibility of the use of MAT money and to ensure Tourism Agencies are arms-length from local government.

MISSISSAUGA CLIMATE CHANGE ACTION PLAN The City of Mississauga has adopted a Climate Change Action Plan to help minimize and prepare Mississauga for the impacts of a changing global climate. The Plan sets out specific goals the City wishes to achieve. The first goal is Mitigation to reduce corporate and community GHG emissions 80% by 2050, as compared to 1990 levels, with a long-term goal of becoming a net zero community and position the City competitively in the emerging low carbon economy. As this is a ten-year plan, an interim GHG reduction milestone of 40% by 2030 has also been set. The second goal is Adaptation to increase resilience and the capacity of the corporation and community to withstand and respond to future climate events by taking action on the highest climate-related risks. On June 19, 2019, City Council passed a motion declaring a climate emergency in Mississauga. The motion outlined the City’s commitment to taking action on climate change and directed staff to develop and bring forward a climate change action plan to Council for approval. MBOT is actively involved as a stakeholder in this to ensure the voice of business is included in the plan’s development. MBOT is a non-voting participating member of the City of Mississauga Environmental Action Committee. The City of Mississauga is now looking at programs and services that could be offered to businesses to help them achieve GHG reductions and energy conservation. It will also partner with groups like Partners for Project Green which has access to funds for similar programs.

THE POLITICAL ROUND UP

CANNABIS RETAIL STORES The City of Mississauga decided at its December 12, 2018 Council meeting, that it will opt out and not allow privately-operated cannabis retail stores in Mississauga. MBOT believes that this was a shortsighted decision and that Council, now armed with the success of the roll-out of cannabis stores throughout Ontario, should re-consider its decision. Recent events and the rise of illegal dispensaries in Mississauga have led some politicians to ask that the City of Mississauga re-consider its decision to opt out. MBOT will continue its advocacy role to get Mississauga City Council to change its decision in 2020.

DOWNTOWN MISSISSAUGA PLAN IN THE WORKS The City of Mississauga is creating a downtown for today and tomorrow. To do this, the City is developing a new guiding document called the Downtown Strategy. This Strategy will build on the success of the downtown core and provide direction for the future. It will reflect what people want to see – a vibrant place to live, work, learn, be entertained, raise a family and most of all, choose to be. The Downtown Strategy seeks to set a vision and plan for Downtown Mississauga by answering the following questions:

•

What are our needs and aspirations for the downtown?

•

What is our vision for the future and what actions will get us there?

The Strategy will build on the Downtown21 Master Plan (2010) - a plan that first outlined a vision to transform the downtown from “suburban to urban” and laid the foundation for the current downtown core. For more information on the Downtown21 Master Plan, please visit www.mississauga.ca/downtown. MBOT is actively engaged in this review and advocating for a strong balance of office and commercial development along with residential. The City of Mississauga has also approved a Community Improvement Plan for Downtown Mississauga which is hoped to spur on new commercial development in Mississauga’s City Centre.

VACANT & EXCESS LAND TAX CLASS ELIMINATION The Region of Peel has decided to phase-out the property tax class for vacant and excess land meaning a 30% tax increase on these properties over two years. Vacant and excess land have enjoyed this lower tax rate for decades as recognition of its importance for future development and no pressure on municipal services. MBOT made a deputation to Peel Regional Council on December 13, 2019 arguing that the tax rate be maintained to encourage appropriate development of these lands in the future.

•

What are the downtown’s strengths?

OFFICIAL PLANS

•

Where are the opportunities? (e.g. to make it easy to live, work, play, shop, gather and learn in the Downtown)

Both the City of Mississauga and Region of Peel are reviewing their official plans in 2020 which is a statutory requirement under the Planning Act. While most of Mississauga is developed, the Official

Plan still sets out important terms for redevelopment and intensification as well as land use definitions. MBOT will be involved in these reviews to ensure that valuable employment lands are protected and that residential encroachment does not threaten existing business uses.

COOKSVILLE BUSINESS IMPROVEMENT AREA Mississauga City Council recently voted to establish a fifth Business Improvement Area in the city. The Cooksville BIA will be created to help support businesses in this community. Business Improvement Areas are created through Provincial Legislation and their operations are funded through a special tax on businesses in the area. The Cooksville BIA will be located at the intersection of Hurontario Street and Dundas Street. It will extend along Hurontario Street from Floradale Drive in the south, to the train line and lands around the Cooksville GO Station in the north; and along Dundas Street from Confederation Parkway in the west, to Cawthra Road in the east.

NOISE BY-LAW REVIEW The City of Mississauga is reviewing its two noise by-laws in an effort to modernize them and have them better reflect community concerns. MBOT is involved in this review to ensure that business operations are not unfairly affected by any proposed changes. While many businesses are adapting to environmental sensitivities some operations do create noise issues. The potential changes will cover aspects such as the complaint response process, residential and construction noise exemptions, permitted periods for amplified sound and noise thresholds.

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THE POLITICAL ROUND UP

provincial government MBOT WORKS VERY CLOSELY WITH OUR PARTNERS AT THE ONTARIO CHAMBER OF COMMERCE (OCC) ON ISSUES WITH THE ONTARIO GOVERNMENT. OUR COMMITTEES WORK HARD LOOKING AT RESOLUTIONS, POLICY DOCUMENTS, GOVERNMENT ANNOUNCEMENTS ON CONSULTATIONS TO ENSURE THE VOICE OF MISSISSAUGA BUSINESSES IS ADVANCED ON PROVINCIAL ISSUES. MEMBERS OF MBOT ARE AUTOMATIC MEMBERS OF THE ONTARIO CHAMBER OF COMMERCE. FOR MORE INFORMATION ON THE OCC, PLEASE VISIT WWW.OCC.CA.

TRUST IN REAL ESTATE SERVICES ACT The Ontario Government has enacted legislation to update the laws for real estate professionals reflecting today’s market. Once in force, it will modernize the rules for registered real estate brokerages, brokers and salespersons. Ontario will continue consulting with consumers and the real estate industry over the coming months to develop the regulations that must be put in place before the act is brought into force. Once proclaimed into force, the proposed changes to the act will enable regulatory changes to improve the information consumers receive about what a real estate professional and brokerage must do for them, and that would give consumers more choice in the real estate purchase and sale process. It will improve professionalism among real estate professionals and brokerages by allowing for regulatory changes to enhance ethical requirements. It will also update the Real Estate Council of Ontario’s (RECO) regulatory powers, including allowing it to levy financial penalties (also known as administrative penalties) to promote compliance with the act — and allowing RECO’s registrar to take into account a broader range of factors when considering eligibility for

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registration. The legislation will create a stronger business environment by laying the foundation for allowing real estate professionals to incorporate and be paid through the corporation while maintaining measures that protect consumers, as well as by enabling the creation of a specialist certification program that may be developed by government or by RECO.

LAND USE PLANNING RULES UPDATED The Ontario Government has released an update Provincial Policy Statement (PPS) on Land Use which is designed to give municipalities greater flexibility and control over local decision-making to support new housing and economic development, encourage more and different types of housing and help ensure an adequate supply of land on which to build more housing. The land development industry has long complained about the timelines for processing land for development, particularly for housing. The updated PPS is expected to speed up approvals by removing red tape and unnecessary regulations. These changes will not impact the Greenbelt, ensuring that it will continue to be protected for future generations.

THE POLITICAL ROUND UP

SHAPING ONTARIO’S SMALL BUSINESS SUCCESS STRATEGY The Ontario Government is conducting a Public Consultation Discussion Paper to look at issues and concerns of business in being successful in today’s economy. It recognizes some key challenges including the high regulatory compliance costs and operating expenses, lack of resources to invest in innovative or new technology, trouble navigating Canada’s complex export requirements and international rules, labour and skills shortages, closures, bankruptcy and job losses due to limited succession planning after retirement and access to capital to develop, test and commercialize new products.

ONTARIO ECONOMIC REPORT IDENTIFIES WAYS TO SUPPORT SMALL BUSINESS SUCCESS Each year the Ontario Chamber of Commerce (OCC) publishes the Ontario Economic Report which reveals opportunities where both business and government can focus to create an environment more conducive to small business success. This year’s report highlights that the confidence gap, which measures the difference between business’ confidence in themselves and in Ontario’s economic outlook, widened in 2020 to near historical levels. Although organizational confidence remains high, business confidence in the broader economy dropped seven percentage points in 2020, explained in part by lowered growth expectations nationally and globally. Beyond this, challenges related to the costs of doing business, the high cost of living, and the province’s debt continue to be top of mind for OCC members. Infrastructure investment, such as transportation and broadband internet, topped the list of business priorities for government, followed by reducing regulatory burdens, lowering the cost of living, and reforming business taxes. Challenges related to accessing financial capital, attracting

and retaining talent and burdensome regulations continue to compromise the ability of many of Ontario’s community to compete effectively with other jurisdictions. Despite these challenges, Ontario’s principal economic indicators remain sound, albeit subdued, heading into 2020, but economic growth is expected to vary greatly across the province. The forecasts show employment and population growth in the Greater Golden Horseshoe and Ottawa surpassing other parts of Ontario, reinforcing a decade-long trend of imbalanced economic growth across the province. The inaugural Small Business Friendliness Indicator (SBFI) measures Ontario’s competitiveness from the perspective of small businesses. For 2020, the SBFI score is -9, (on a scale of 100 to -100) indicating that the business environment poses some challenges for firms with fewer than 99 employees. However, through measures such as investment in online services and support for regulatory compliance, industry and government could improve that score.

federal government MBOT MEMBERS ARE ALSO MEMBERS OF THE CANADIAN CHAMBER OF COMMERCE (CCC) WHICH IS THE NATIONAL VOICE OF BUSINESS TO THE FEDERAL GOVERNMENT. MBOT STAFF AND COMMITTEES EXAMINE ISSUES AND RESOLUTIONS OF THE CCC AND PROVIDE MISSISSAUGA’S INPUT. MORE INFORMATION ON THE CCC IS AT WWW.CHAMBER.CA.

CANADA-UNITED STATES-MEXICO (CUSMA) TRADE AGREEMENT The CUSMA trade agreement has become the law in Canada along with the two partner countries of the 18

United States and Mexico. Work on full implementation of the Agreement is being done by the three partners. On November 30, 2018, Canada, the United States, and Mexico signed an agreement to replace the North American Free Trade Agreement (NAFTA) with the Canada-United

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THE POLITICAL ROUND UP

“Canada needs a clear, sober-minded and forward-looking economic strategy that provides sustainable growth for all Canadians.”

States-Mexico Agreement (CUSMA). This new agreement will reinforce the strong economic ties between the three countries and support well-paying middle-class jobs for Canadians. Subsequently, on December 10, 2019, Canada, the United States and Mexico agreed to update certain elements of CUSMA to improve the final outcome and clear the path toward ratification and implementation of the agreement in all three countries. CUSMA will maintain the tariff-free market access from NAFTA, and includes updates and new chapters to address modern-day trade challenges and opportunities.

CANADA 360 ECONOMIC SUMMIT CALLS FOR FORWARDLOOKING ECONOMIC STRATEGY The Canadian Chamber of Commerce’s (CCC) recent economic summit covered a lot of topics, but one common unifying thread emerged: Canada needs a clear, sober-minded and forward-looking economic strategy that provides for sustainable growth for all Canadians. Based on the panelist’s exchanges, the business community identified eight priorities to attract investment to Canada, help create jobs and grow and strengthen our communities: •

A regulatory system that works for everyone, including business

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•

Infrastructure and innovation to make Canada the most connected country in the world

•

A workforce with the skills, education and training to prosper

•

Access to new markets around the world and the elimination of trade barriers at home

•

A tax system that is fair, efficient and modern

•

Resources to help small and medium companies grow and succeed

•

Addressing climate change by lowering emissions and increasing energy supply

•

A healthier pharmacare system for healthier Canadians

EXPORT DEVELOPMENT CANADA RELEASES TRADE CONFIDENCE INDEX Export Development Canada released a report recently that shows that Canadian trade confidence has fallen to its lowest level in 8 years and that trade protectionism remains a big concern for Canada’s exporters. Uncertainty over the CUSMA has lifted but global recession worries remain elevated. The report further stated that Canadian exporters are diversifying their exports with 68% going to the US, 11% to China, 7% to Germany, 6% to India, 5% to Mexico and 3% to the UK.

NEW FEDERAL DRUG RULES DELAYING MEDICINE LAUNCHES, JOB LOSSES To help measure the impacts of the federal government’s new price controls for patented medicines in Canada, Life Sciences Ontario commissioned Research Etc., an established Toronto research firm, to conduct an anonymous survey of pharmaceutical and other life sciences leaders. The survey, which drew on data from 46 respondents including leaders from 36 Canadian and global pharmaceutical companies, revealed unanimity on the negative impacts of the changes to the Patented Medicine Prices Review Board (PMPRB). These negative impacts include: delayed new medicine launches in Canada, particularly new cancer medicines, biologic medicines, and medicines for rare disorders; job losses across the life sciences sector and fewer investments in clinical research, patient support programs, and compassionate access programs – all vital means by which patients have better and early access to new treatments. Some companies are already making these decisions in advance of the implementation date of the new changes of July 1, 2020. 

MEMBER TALKS

If You

Love What You Do,

Why Should You Make Plans

Many business owners love the companies they’ve founded, whether it’s because of the work they do, the changes they effect, the money their companies provide, or something else. When you carve out a comfort zone within your business, you might question why you would want to plan for your business exit. Today, we’ll look at a few reasons why owners who love their companies should still make plans to leave.

BILL BLACK

President Exit Planning Group

POST-BUSINESS Life USUALLY DOESN’T GET CHEAPER For many business owners who intend to leave their businesses before they die, financial security is an absolute must. While you run the business, you pull a salary. You might use perks like company vehicles, insurance, and travel. Perhaps you take advantage of your personal clout as a successful business owner. Once you exit the business— by choice, death, or otherwise—those things tend to go away. A strange but relatively common mindset for business owners is the idea that they can cut back on their spending once they’ve exited. This is almost never the case. If you exit by choice, you’ll likely spend at least 75–90% of what you spent when you owned the business. You may want to travel, or lavish your family with gifts, or set your grandchildren up for college: all without the safety net of a steady income provided by the business.

In short, post-business life is usually as costly as life before the exit. Even if you don’t intend to exit for 5–10 years (which is what many owners say they intend to do), you’ll likely need to know whether you can maintain your current lifestyle once you do leave. You can begin to determine your financial situation in a few ways. You can establish your goals and estimate what it will cost to achieve those goals. You can determine the gap between the money you have and the money you need to achieve those goals. You can also compare that gap to the company’s current value, then begin installing Value Drivers that allow you to sell or transfer the business for the amount you want and need. All of this requires time. So, even if you love your company and don’t see yourself leaving for several years, or even decades, it’s likely in your interest to start planning for that eventuality. Because post-business life usually doesn’t get cheaper.

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MEMBER TALKS

Leave?

PLANNING LETS YOU FOCUS PRIMARILY ON WHAT YOU Love

Many business owners often find themselves doing things they never imagined doing within their businesses. Some of those unexpected activities are things they’d rather not be doing. For example, an introverted owner might find that she needs to be the face of the company. A key focus of planning is finding the best people for the right job so that you don’t have to be everything to everyone. A common way to do this is to find or train next-level managers. Nextlevel managers take on many of the responsibilities you likely find yourself stuck with. Oftentimes, those nextlevel managers can handle those responsibilities better than you can, if for no other reason than you simply aren’t too passionate about those responsibilities.

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The flip side of this coin is that with proper planning, you can position yourself to do only the things you truly want to do: the things you likely started the business to do in the first place. This can make ownership even more fulfilling and can let you focus on the things you enjoy as you begin to wind down your ownership.

Life GOES ON

About 10% of owners say that they want to die at their desks. Surely, planning is unnecessary for them, right? That’s usually not true. Even owners who plan to die at their desks often have people or causes they care about that the business directly affects. You may have family members who rely on the business to maintain their lifestyles. Without proper planning, what happens to them? You may want to assure that after you die, your employees still have jobs (or a safety net that gives them time to find new ones). What happens to them without proper planning?

Even if you plan to die at your desk, planning for future success can still be valuable to you. You can install business continuity plans that can give people you care about direction regarding what happens to the business once you die. You can install next-level managers whose goals and managing styles line up with your values-based goals. You can even help your family continue to maintain their lifestyles without the business. If you’d like to discuss specific strategies you can use to address these issues, please contact us today. 

The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial advisor. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. We are Members of the BEI Network of Exit Planning Professionals™

MEMBER TALKS

Understanding

FAMILY -

On the surface, family businesses share numerous traits with their non-familial peers. Dig deeper, however, and they are an entirely different breed. Priorities differ, issues of governance and succession can be more complex, and long-term goals are often as much about such items as protecting legacies as they are about serving the bottom line.

PHILIP J. FOGARTY Partner and GTA Audit Innovation Leader KPMG

Then there are the complexities posed by family dynamics when mixing family and business. We’ve all heard the saying from “clogs to clogs in three generations,” in fact, there is research which suggests that 70% of family businesses won’t survive the second generation, while 90% won’t make it past the third. The reasons for failure vary, but more often than not, they are in some part the result of an inability to find harmony between the often competing priorities in the so-called “three-circle” model that is, “Family”, “Business”, and “Ownership”.

The following are only some of the common issues which can unsettle the scales: • DEFINING WHO IS “FAMILY”: Many family businesses are challenged to answer the “who is family” question as it relates to issues of Ownership, Governance, and Succession. Should ownership be restricted to “blood line relatives”, and are spouses and common law partners considered “family”. How do we view issues of same sex unions, adopted children or even divorced family members? • OUTDATED GOVERNANCE: Family businesses employ a variety of natural or informal governance structures, many of which attempt to maintain harmony between the Family, Business, and Ownership (aka the “three-circle” model). This natural or informal approach to governance may keep the business and family on course in the near term, but can buckle under the pressure of competing priorities, generational values, and business realities. • LACK OF SHARED PURPOSE: In all organizations, not just the family business, it is critical to success

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MEMBER TALKS

the

- BUSINESS that there is a clear vision, goals and objectives so that everyone in the organization and family is pulling in the same direction. The Shared Purpose of a family business is a voluntary commitment to be in business together. In the case of a family business, there can many other objectives and goals which are non-financial (socio-emotional) such as protecting the family legacy or reputation and philanthropy, to name a few.

growth and adaptation, but family businesses can find themselves torn between honoring traditions and outdated ideologies that clash against the realities of the modern business and the conflicting vision of the next generation.

the data gaps in the understanding of this important part of the economy are worrying. It is important for the advisory community to invest in understanding this space to help ensure the future success of such an important sector of the Canadian economy.

Overcoming these hurdles is difficult, but doable, and there is proof of that fact. Family businesses account for nearly half of private-sector employment and 48.9% of private sector GDP in Canada.

• RESISTANCE TO CHANGE: “We’ve always done it this way” is a mantra that may fly in the home, however, business success depends on

Indeed, there are no clear cut solutions for every family however, given the demographic trends and the looming succession of many family businesses,

We’ve barely scratched the surface of thought leadership in the family business space - look for a more indepth discussion on specific topics of family business governance and other key issues in future articles. 

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MEMBER TALKS

TOP 5 TAKING THE LEAP IN BECOMING AN ENTREPRENEUR IS ONE OF THE MOST IMPACTFUL CHANGES ONE GOES THROUGH AS THEY EVOLVE IN STRIVING TOWARDS THEIR GOALS.

As the small business sector in Canada continues to grow, it is important to be aware of some deductions that can be claimed to decrease your tax payable and keeping in mind some potential audit risks with Canada Revenue Agency (CRA).

1 ALI RAZA JAFFER Chartered Professional Accountant AR Jaffer Professional Corporation

RENT OR HOME

VEHICLE

Whether you are renting an office or operate a home office, some expenses that can be claimed include rent paid, utilities, insurance, repairs and leaseholds. For home office, you may also claim a portion of the interest paid on your mortgage (office usage portion only).

As CRA is clamping down on auto expenses, business owners must ensure that a mileage log is kept. There are many apps that can be connected to your vehicle to keep your mileage logs current. Some expenses that may be claimed include:

OFFICE EXPENSES

EXPENSES

• Capital Cost Allowance (if you own) • Fuel • Insurance • Lease payments (if you lease) • Parking • Repairs & maintenance • Toll charges • Vehicle registration

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MEMBER TALKS

Deductions FOR SMALL BUSINESSES “My best advice to business owners on claiming is to ensure that they are only for business purposes.”

If the vehicle is under the business’ name, there are taxable benefits that may be required to be added to income if you own a corporation.

ADVERTISING, TRAVEL, MEALS AND

PROFESSIONAL AND

As these costs are essential for small businesses, they must be incurred to earn business income. Some examples include:

MEMBERSHIP FEES

Recently, CRA has been looking very closely at professional fees to ensure that they are in fact for business purposes. Consulting, legal, accounting and association fees must be supported by invoices and proof of payment

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ENTERTAINMENT

• Online, media and print advertising including website domain name registrations and web hosting • 50% of amounts spent on client meals are eligible to be deducted • Business travel to earn revenue are also deductible (includes, airline, rentals, hotels, gas expenses)

INSURANCE

EXPENSES

There are different types of insurance that qualify as tax deductions for small business owners. Some of these include, auto insurance (business component), liability insurance, medical benefits, and business property insurance. Note that corporate life insurance premiums may be paid from the corporation, but these premiums are not deductible. My best advice to business owners on claiming is to ensure that they are only for business purposes. Furthermore, please seek advice with a professional to determine if CRA allows these expenses. Finally, per CRA requirements, you must have the documentation to support your deductions. 

MEMBER SPOTLIGHT

MEET THE MAKERS OF ECO-MAX A SHORT HISTORY OF PRISM CARE CORPORATION, 2019’S SMALL BUSINESS OF THE YEAR Two decades ago, the commercial cleaning landscape was on the cusp of change. Expectations for what defined a safe and effective cleaning experience were beginning to evolve. Green cleaning was in its infancy with pioneers like Felix Borges, Founder and CEO of Prism Care Corporation leading the charge.

“I spoke to many people from all sectors of the JanSan industry – particularly front-line cleaning staff who are exposed to toxic cleaning chemicals every day while doing their jobs,” recounts Borges. “The need for safer options for both people and planet were clear.” It’s this need that fueled Borges’ determination to found family-owned Prism Care Corporation in April 1999 with a mission to benefit people and the environment and to launch its first success, PrismEnvironmental®, a series of high-performance, heavy-duty cleaners designed for the commercial cleaning market. “We tirelessly researched the best natural, plant-based and sustainable raw materials, and created countless formulations to satisfy the needs of the industry,” Borges explains. At the time, Prism Care was one of only a handful of companies who offered EcoLogo (now UL ECOLOGO) products that were tested and certified for environmental leadership. “It was not until the Canadian government began mandating the use of recognized third-party certified products in their facilities did our ideas for a safer cleaning experience begin to really gain traction,” Borges shares. “Those reluctant to make the switch jumped on board and began seeing the value of what we were doing.” In the following years, Prism Care continued pushing the boundaries of what a natural cleaning experience could be, introducing BioFactor™, a line of non-pathogenic, bacteriabased products and in 2003, launching Eco-Max®, the company’s flagship brand and gold-standard for healthy cleaning.

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MEMBER SPOTLIGHT

“The need for safer options for both people and planet were clear.”

“Many conventional cleaning products contain toxic ingredients that can reduce indoor air quality and cause adverse health affects, in addition to polluting our environment,” explains Borges. With Eco-Max, the company chose to leverage plantbased cleaning agents to create a significantly safer cleaning experience for people and the planet. Eco-Max was embraced by professional cleaning services for its strong performance and full range of solutions. Its now used in major banks, airports, and other commercial and recreational facilities across the country, including institutions with strict indoor air quality standards. On the heels of strong JanSan success, in 2006, Eco-Max launched a consumer line that has since grown to over 100 SKUs of household cleaning products. Now, the brand is sold in over 1,000 Canadian retail outlets, including independent health food stores and major grocery chains like Loblaws and its banners, Canadian Tire, Sobeys and Walmart—and exported to international markets like the United Kingdom. Prism Care has come a long way in the last 20 years, and it would seem the company’s trailblazing has paid off. Today, industry decision makers and household consumers see the value of green cleaning technology and are taking time to learn about safer cleaning practices and healthy living. “We’re thrilled at how far we’ve come. Canadians are more educated than ever and continue to ask the right questions about their cleaning products. They’re also asking about the company behind the brand and we’re happy to say, we’re making an impact there, too,” Borges shares. Prism Care strives to adopt sustainable practices and is shaping industry trends on a global scale. For nearly a decade,

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the company has incorporated sustainable energy in its operations and today powers its 46,000 sq. ft. manufacturing facility with renewable energy from Bullfrog Power. It has taken a leadership role in its packaging practices, using 100 per cent post-consumer recycled plastic in some of its mostused consumer products. In 2014, Borges was appointed to a Standards Council of Canada committee that contributed to the creation of ISO 20400 Sustainable Procurement, a new global standard enabling organizations to implement sustainable environmental, social and economic development. During the process, he represented the Canadian committee at ISO/ PC-277 international meetings held at the British Standards Institute in London, England. Borges is also currently a member of the UL Committee tasked with developing the new standard UL 3420 Sustainability of Plastic Packaging, which aims to address sustainability factors for plastics such as energy use, material efficiency, chemical hazards, recyclability, in addition to impacts of production and end of life. Borges shares the future of Prism Care is looking bright and is in good hands with his sons Sheldon Borges, President, and Ian Borges, Vice-President - Marketing & Communications who have played integral roles in Prism Care’s journey. “We are going to continue demonstrating to Canadians and people around the world that choosing a safer cleaning product isn’t just the right choice for healthy living, it’s the right choice for the future.” Interested in a safer cleaning experience for your business? Get in touch with Prism Care at (905) 820-2273, toll free (888) 538-3300 or visit www.prismcare.ca. 

Get your business team to the next level of success. If you want your business to grow, you need every team member pulling in the same direction. Thatâ&#x20AC;&#x2122;s not easy. We help your people unlock their potential, clear up organizational and personal roadblocks and get your business to exceed its targets, and in just 3 to 6 months. Get your free consultation today: info@theMECCcornerstone.com The MECC Cornerstone 647 297-0741 www.theMECCcornerstone.com Professional & organizational coaching

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MEMBER TALKS

BUSINESS Success

through Personal Growth

FOUNDATIONAL TRAINING AND COACHING

Napoleon Bonaparte once said, “An army marches on its stomach.” He knew that the ability to feed his army determined the extent of his success for each conquest. Today, this lesson is more relevant than ever – in the world of business.

MARCH TO

Success

Your business “marches”, in other words operates, develops and grows, on the personal growth of each of its members, from the executive level down. Your “conquests” – your customers, market share and revenue – rest on their collective backs, not on your technology, products or services. The personal growth of your employees is your “food” for success; and consequently, for that of your organization.

FOOD FOR

Success

Personal development and growth is about giving your people the opportunity to learn, understand and apply new information. It’s about providing them with new experiences, encouraging them to explore new ideas, and offering new approaches to lessons they have already learned. It has little to do with providing technical skills and management training courses. Why? Because without the foundational context – business and personal mindset, experience and core values/creed – participants lack the insights they need to successfully apply what they’ve learned.

SUSTAINABLE

Success

Business and personal foundational training and coaching addresses this contextual understanding. Ideally, it is conducted over a period of time, usually three to six months, in order to meet your business needs. This approach ensures that the lessons, tools and methodology can be understood and implemented as part of your ongoing business operation. Having a core process for business and personal development and growth will drive your business success in an ongoing, sustainable way.

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LARRY LALL

Business and Personal Coach The MECC Cornerstone

As Napoleon knew, and every successful business knows, your “army’s” sustainable achievements rest on the shoulders of each member’s continued contribution. By providing your people with the foundational training and coaching specifically aligned to your business, you will see an increase in personal confidence and creativity. Engagement, performance and productivity will improve. Their ability to communicate in any situation, and to promote your brand, will grow. The bottom line: revenue growth, reduced cost, and hence, increased profitability.  You can take action on this today by contacting: Larry Lall, Business and Personal Coach The MECC Cornerstone 647 297-0741 info@theMECCcornerstone.com

THE

MEMBER TALKS

Million-Dollar BETWEEN ENTREPRENEURS

KEN TENCER Spyder Works Inc.

In these disruptive days, no company can grow without studying the entrepreneurial successes of such firms as Amazon, Google, Virgin and Uber. But there’s another type of entrepreneur you should be studying that may be even more important to your future: the intrapreneurs in your organization.

Intrapreneurs are creative, resourceful people who champion new products and business processes within corporate structures. They are highpotential change makers who can make your companies millions by reviving tired product lines, spotting new opportunities, and helping bulky organizations become nimble and relevant again. I believe that intrapreneurs represent the rocket fuel companies need to secure their futures in a world of change. By being more aware of the needs of these internal changemakers, companies can become active innovators without trying to change their culture or spending millions on outside sources of R&D. To harness these self-motivated agents of change, however, organizations have to understand their intrapreneurs – and how they differ from traditional entrepreneurs. To begin this process, Spyder Works consulted with MultiHealth Systems (MHS), a leading publisher of scientifically validated assessments, to produce the first in-depth study of the traits of intrapreneurs. MHS’s new study, Entrepreneurial Edge, surveyed more than 400 entrepreneurs and more than 700 intrapreneurs, mainly in the United States and Canada. The results find entrepreneurs and intrapreneurs have many similarities.

Compared to the general population, both groups rank off-the-charts (as you’d expect) in terms of risk tolerance, adaptability to change, innovation, and their ability to create and communicate a singular vision. But entrepreneurs and intrapreneurs aren’t the same. They are separate breeds, with key differences in motivation and behavior. So, companies hoping to boost their innovation quotient should understand these four key differences between entrepreneurs and intrapreneurs: • DRIVEN: MHS’s research found that both entrepreneurs and intrapreneurs are internally motivated, achievement-oriented, and eager to make things happen. But traditional entrepreneurs are more driven to action than intrapreneurs. This makes sense; entrepreneurs often commit thousands of dollars and years of their time to pushing their plans forward – while intrapreneurs are being paid for their time and investing the organization’s capital rather than their own. But this is a reminder that intrapreneurs aren’t as single-minded as entrepreneurs – which means bureaucracies must be careful not to snuff out their creativity. Intrapreneurs’ drive is a limited resource that organizations need to cherish and promote.

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MEMBER TALKS

Differences

& INTRAPRENEURS • INNOVATIVE: Entrepreneurs and intrapreneurs are both skilled at imagining new products and developing new solutions to old problems. But intrapreneurs score lower on this scale. This implies that they may be less creative when it comes to new ideas or need more support in developing new solutions. Some firms temper their employees’ innovative instincts through rules, budgets, or by providing inadequate resources. This finding suggests that companies that want real, consistent innovation should encourage these instincts rather than hold them in check. • VISIONARY: Successful changemakers conceptualize their focus to create a clear vision they can communicate to all their partners in disruption: employees, customers, prospects, teammates, or upper management. Intrapreneurs rank below independent entrepreneurs on this measure. Companies that need intrapreneurs to become successful leaders must ensure these key employees receive sufficient resources to develop a

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“I believe that intrapreneurs represent the rocket fuel companies need to secure their futures in a world of change.”

clear vision and have the confidence to trumpet their message as loudly as necessary. This can be hard for organizations that expect all employees to “be on the same page.” But innovation flourishes only when the innovators feel safe and supported. • RISK TOLERANT: The data indicate that traditional entrepreneurs are significantly more comfortable taking calculated risks than are intrapreneurs – although this group still scores much higher than the general population. This is good news for employers: intrapreneurs are attracted to calculated risk. They weigh all the advantages and disadvantages before choosing which risks to take, which makes them not just positive sources of innovation, but also trustworthy stewards of the company’s resources. Business leaders must learn to understand and nurture intrapreneurs. Their creativity is your best defense against rigidity, and your most direct path to a more successful future. 

MEMBER TALKS

DISCOVER Y

sustainable

CORPORATE LANDSCAPE This article is part of Credit Valley Conservation’s Greening Corporate Grounds Take Sustainability Outside series. We’re challenging businesses to think outside the box when it comes to corporate social and environmental sustainability.

DEBORAH KENLEY

Senior Coordinator, Greening Corporate Grounds Credit Valley Conservation

Our last article talked about why businesses need a sustainable landscaping plan. Unlike conventional landscaping, sustainable landscaping uses nature to support biodiversity, reduce the effects of extreme weather and protect the environment. If knowing where to start seems daunting, here’s five ideas to help you set the vision for your sustainable corporate landscape.

SIZE DOESN’T

MATTER

Property size, proximity to natural areas and current landscaping determine what projects are best for your property. A small patch of grass can become a pollinator garden; a large open area can be a future prairie meadow. Maybe you’d like to focus on preventing pollution or

managing stormwater on your property. Perhaps you’re considering a green roof. There’s a unique opportunity for every property, large or small.

LET YOUR VISION

BE YOUR MISSION Align your project with your corporate social responsibility mission. Consider your brand when choosing an aesthetic direction. If employee well-being is a key pillar of your corporate strategy, engage staff and create native pollinator gardens. Connect green spaces with paths for employees to enjoy. Book an on-site planting event or design charrette with us to get started.

CONSIDER LAND

AND WATER

Understand the natural features on your property. Focus projects on areas most vulnerable to the effects of climate change and unpredictable weather events. For example, plant trees to increase shade or retrofit your parking lot with green infrastructure to prevent flooding.

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MEMBER TALKS

Future-proof your business

Invest in nature with Greening Corporate Grounds

PLAN FOR

RETROFITS Achieving the best return on investment requires planning and a clear vision for the future. Will your property require a new parking lot or new roof in the next two to five years? Start now by giving us a call.

Join a community of business leaders taking the lead in environmental sustainability by changing the way you landscape your property. • Transform sustainability goals into action

START

SMALL There are quick and easy ways to improve air and water quality on your property. A pollution prevention plan is a great way to start small while making a big impact. Attend our webinar on June 18 to learn how your business can benefit from a pollution prevention plan. Visit cvc.ca/events to register. Discover your corporate landscape by creating a sustainability vision for your property. Visit cvc.ca/gcg/yourvision or contact us at gcg@cvc.ca to book a free site assessment. 

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• Reduce conventional landscaping costs • Prepare your property for climate change Become a member of Greening Corporate Grounds to receive up to $5,000 worth of sustainable landscaping design services.

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CAN YOU DISPOSE OF The Ontario Court of Appeal says yes. It is now indisputably the law of Ontario that a testator, who is the sole owner of a private company, is able to dispose of the assets of that company by Will.

The Right Fit Matters

R E G I ONA

2019-20

I RM

ONTA

At Pallett Valo LLP we give you what you need, not what you don’t. With our flexibility and the right expertise in a variety of business law areas, we provide you with a legal solution that is tailored to suit you – all without compromising service or quality. If you want legal representation that’s just the right fit for you, try on our Right-sized Thinking®.

TOP 10

Your Authority For: Business Law • Commercial Litigation Commercial Real Estate • Construction Insolvency & Corporate Restructuring Employment & Labour • Wills, Estates & Trusts

This should be carefully considered by all those estate planning lawyers who have traditionally advised clients that they may only dispose of the testator’s shares, and not the corporation’s assets, by Will. It is our experience that business owners commonly co-mingle assets in private companies and desire to gift those assets as their own, in their Wills. The case of Trezzi v. Trezzi was one such case. The deceased was sole owner of Trezzi Construction, which held real property and equipment used by active businesses, investment real property, and personal use property. By his Will, the deceased directed the real property and equipment owned by Trezzi Construction be gifted to his son, Albert, and the remaining assets of Trezzi Construction be divided among his wife and all three of his children. On an Application brought for direction, Mr. Justice Wilton-Siegel applied an intention analysis to conclude that the deceased intended to gift the corporate assets, that he intended to accomplish this by winding up the corporation and that the executors therefore had the authority to effect the wind up the corporation and effect the gifts.

Right-sized Thinking® • pallettvalo.com

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MEMBER TALKS

CORPORATE ASSETS BY A WILL? On the appeal, the surviving wife, Gina and the daughters Emily and Bianca, argued, amongst other things, that the hearing judge erred in applying an intention analysis, and that the rule against gifting what one does not own, and the principle of separate corporate personhood, required that the gifts fail. In rejecting the appeal, the Court of Appeal favoured the hearing judge’s analysis, agreeing that the court’s role was to confirm the deceased’s intentions, and determine if the Will, and corporate law, conferred sufficient authority on the executors to give effect to those intentions.

corporation and distributing its assets to the estate may result in potentially significant income tax liability, and there is a higher risk of interpretation issues and abatement. There are often several options available at the planning stage to avoid the potentially high risk of gifting corporate property, and tools such as reorganizing the corporations, using options to purchase instead of outright gifts, and other avenues might well be preferred. It is also recommended that the Will include terms which recognize the corporate ownership of

CRAIG ROSS

Partner Pallett Valo LLP

“While it seems that testators who solely own private companies have broad discretion in desposing of corporately owned assets, planners should still approach such intentions with great care.” While it seems that testators who solely own private companies have broad discretion in disposing of corporately owned assets, planners should still approach such intentions with great care. In many cases, winding up a

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the assets, include powers specifically addressing the corporation and role of the executors in effecting the gifts, and contemplating which assets will bear the burden of any liabilities related to the gifted assets.

The application of this decision to future cases will require careful consideration of other conditions, such as the existence and extent of corporate debts, security interests, shareholder agreements, and the existence of minor shareholders. 

FROM OUR CHAIR

THE MISSISSAUGA BOARD OF TRADE

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EVENTS AT A GLANCE

EVENTS AT A

Glance MEMBERSHIP MATTERS MONTHLY ORIENTATION Complimentary to both new and current members looking for a refresher and designed to make sure you are making use of everything that your Board of Trade has to offer and to expose you to some of the important privileges that come with membership.

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EVENTS AT A GLANCE

From the Corner office with LISA LISSON PRESIDENT OF FEDEX CANADA THE GLENERIN INN & SPA CEO & Exectutive Series featuring presentations from some of Canada’s most influential entrepreneurs, CEOs and business success stories in a fire side interview format.

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BREAKFAST WITH YOUR RE-ELECTED MISSISSAUGA MP’S A informal fire-side chat for our members to have an opportunity to interact with Mississauga’s business community. TITLE SPONSORS

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EVENTS AT A GLANCE

Luncheon with HON. MONTE MCNAUGHTON MINISTER OF LABOUR, TRAINING AND SKILLS DEVELOPMENT

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GOLD SPONSOR

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Professional Development Series DIGITAL TRANSFORMATION RESIZED FOR YOUR BUSINESS

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PART 2

Identifying the right Social Media Channels for your business and creating Killer Content.

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EVENTS AT A GLANCE

Good Evening Mississauga BUSINESS SOCIAL VENUE SPONSOR

TAP Workshops TRADE ACCELERATOR PROGRAM NATIONAL SPONSORS

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EVENTS AT A GLANCE

HER WORSHIP MAYOR BONNIE CROMBIE ANNUAL ADDRESS

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PHOTOS TAKEN BY:

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THE IMPORTANCE OF KEEPING YOUR

ANTIVIRUS

STEPHANIE BAIRD

Marketing and Communications LOGIX Data Products Inc.

MY COMPUTER KEEPS ASKING ME TO RUN ANTIVIRUS UPDATES;

IS IT EVEN IMPORTANT? The short answer; yes. We know, we know, every program and its mother (as the idiom goes) wants you to do an update. And itâ&#x20AC;&#x2122;s not always a quick little thing either. Sometimes antivirus updates can take upwards of 45 minutes, it slows down your machine, and on top of that you sometimes have to restart your computer. It can put a real damper on your productivity.

WHAT ARE THESE

UPDATES?

Antivirus updates work in a similar fashion to your immune system. When viruses are developed, many of them carry a signature. Your antivirus is designed to recognize those signatures and quarantine or delete the threats on discovery, before it has a chance to infect your computer. As antivirus developers discover new malware and malicious file types, they create a signature that describes the threat to your system. That signature is then added to the antivirus database and needs to be pushed out to the end users. Once this update is complete, the antivirus software can start protecting them from newly discovered threats.

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MEMBER TALKS

SOFTWARE

UP TO DATE

“As of December 2018, there were

350,000 new threats created

PER DAY. As a result, antivirus researchers are always playing catch up to stay up to date with the latest threat.”

WHY DO WE NEED TO

UPDATE SO OFTEN?

As of December 2018, there were 350,000 new threats created PER DAY. As a result, antivirus researchers are always playing catch up to stay up to date with the latest threat. Once new strains are discovered, the developers push the update to your computer so it can be protected from tens of thousands of newly discovered threats. The longer you wait to update your system, the bigger you allow the coverage gap to get and, as a result, the longer your system is vulnerable to threats that you would otherwise be protected from. Even with all of these updates in place, the rate in which new threats are evolving still leaves a chance that a virus may get in undetected. Which is why antivirus should be the first line of defense in a multi-tiered managed environment. Having a tiered security plan in place shifts a ransomware attack from a detrimental and possibly fatal event to your company, to a minor inconvenience. Rather than scrambling to do damage control, your MSP can simply push a button to go back in time to before the system was hijacked – without having to dish out thousands or even millions to cybercriminals. With this type of service in place, your MSP can help create security protocols that schedule updates when employees have gone home for the day, keeping them productive – but also confirming that important scans and updates are followed through with, keeping your systems protected from lurking threats. 

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THE

MEMBER TALKS

Alchemy

OF FEAR

At one time or another, most people have felt the unpleasant feelings induced by real or imagined fear.

TANIA KOLAR

President and Founder Ignite Life Mastery Inc.

Fear can be immobilizing, but if we can take action to move past fear, we can transmute fear into exhilaration by taking small action amid distress. Although imagined fears, like fear of heights, public speaking, people or spiders, pose little to no real threat, it

does active the sympathetic nervous system and induces emotional and physiological responses like those experienced in life-threatening situations. This is commonly known as the fight or flight response which causes an increase in heart rate, breathing and blood pressure. This is extremely useful in determining if we should stay and fight in the moment or flee to avoid imminent danger, like if we were being chased by a tiger. However, we create fearful scenarios in nonthreatening situations which triggers the same response as fear arising from alarming situations that can feel like we are being chased by a tiger. Imagined fear is mind-made and stems from imagining negative outcomes that are not grounded in reality. Fear escalates as we fixate on thoughts rooted in â&#x20AC;&#x153;What if? â&#x20AC;? outcomes. What if I fail? What if I plummet from thousands of feet up in the air? What if everyone laughs at me? What if the spider is poisonous? Our thoughts are focused on the potential harm that may occur if what we fear actually happened. When experiencing fear the brain tries to keep us safe by sending a rush of hormones to the body which thrusts us into a state of hyper-arousal. To

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MEMBER TALKS

counter this biochemical response we can first, take several deep breaths in and slowly exhale to calm our state. We can then choose to conquer fear by acknowledging that most fear is an illusion that only exists in our minds, and poses no real threat. With this awareness, we can halt “What if?” scenarios running on repeat in our minds or at least redirect them by replacing unfavourable thoughts and imagining pleasing outcomes. If you can move beyond imagined fear by taking some small action in the moment you are experiencing it, you can transmute fear into feelings of exhilaration and experience the alchemy of fear.

ABOUT THE AUTHOR Tania Kolar is a success coach, host of The Mindset Mentor, president and founder of Ignite Life Mastery Inc., and bestselling author of Breaking The Stupid Mold. To learn more please visit www.ignitelifemastery.com. 

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NEW MEMBERS LISTING

Welcome

NEW MEMBERS OF MBOT

DECEMBER 2019

JANUARY 2020

FEBRUARY 2020

Access Storage Bimal Shah Professional Corporation Canada Mortgage and Financial Group CIBC- Dixie And Meyerside Banking Centre Fragomen Canada Helpfast Personnel Inc. Legacy Private Wealth and Estate MECC Cornerstone Web Worx Labs

Acerus Pharmaceuticals Corporation CAPP Canadian Association of Petroleum Producers EduIndustry Connect Keyens Financial Services Lockyer + Hein LLP LP General Contractor Inc. Morel Benefits Movati Athletic Novartis Pharmaceuticals Canada Inc. Puersten Bookkeeping Royal Auto Collision Sage Digital Installations

Admiral Inn BEAM.gg Canadian Orient Trade Inc. Cloudbridge GBA LLP Chartered Professional Accountants IG Wealth Management MREB Mississauga Real Estate Board SERVPRO of North Mississauga Sheraton Gateway Hotel Toronto International Airport SQM Janitorial Services Inc. VirgoCX Inc. World17

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CONNECT 2020 - Spring Edition

Articles inside

MBOT Referal Program

New Members

The Alchemy of Fear

If You Love What You Do, Why Should You Make Plans to Leave?

Discover Your Sustainable Corporate Landscape

The Million-Dollar Differences between Entrepreneurs & Intrapreneurs

Understanding the Family-Business

Moving Your Business from Operating as a Sole Proprietorship to a Corporation

Business Success through Personal Growth

Top 5 Deductions for Small Businesses

Can You Dispose of Corporate Assets by a Will?