Douglas magazine February/March 2016

the brains behind functionfox

Innovation Issue Making it Local

Taking it Global Specialty

feb/mar 2016

What’s the

Best Setup for Your Startup?

manufacturers in the spotlight

small town big profile Tofino’s mayor Josie Osborne makes a big impression

special Education Section PM41295544

Strength

in numbers Dan Dagg, Interim-Chair, South Vancouver Island Economic Development Association

12 of 13 municipalities collaborate in a new approach to economic development

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Contents Feb/Mar 2016

cover story

9 Strength in Numbers

Douglas explores the bold new approach to regional economic development

Features

18 Small Town, Big Profile

Tofino mayor Josie Osborne earns respect in good times and bad.

By Athena McKenzie

38 What’s the Best Setup for Your Startup?

Home office, co-working space or private office? Pick the best space for your business needs.

32

special Education section

Making the most of your degree, micro-learning and the ROI of employee training.

it Local, Taking it Global 26 Making

Why Island specialty manufacturers are key to a sophisticated economy. by Shannon Moneo

INTEL [Business Intelligence] 40 Entrepreneur

departments 6 From the Editor 9 In the Know

16 Take Three

The Internet of Things in the office

A new regional approach to economic development, groundbreaking 3D anatomy innovation, attracting international tech investment and #yyj’s new business hub

22 THE BIG IDEA

15 People in Business

46 Last Page

The who, what and where of the business scene 4 Douglas

Jeffrey bosdet/Douglas Magazine

by Athena Mckenzie

Douglas looks at of one of Victoria’s most successful tech-solution exporters, FunctionFox By aDRIENNE DYER Coffee couture

Adapting our education system to entrepreneurs

42 money

The pitfalls of robo-investing

by Steve BokOr

43 Human REsources

Dealing with professional burnout

by Ingrid VaughAn

44 Sales and Marketing

by Athena McKenizie

by Peter Elkins

Warming up the cold call

by Mike wicks

“I am passionate about designing buildings for my community and my clients that meet the needs of today, while remaining adaptable for the future.�

Scott MacNeill, Architect AIBC Architectural Team Lead, Victoria Office

Nanaimo Regional General Hospital Energy Centre Island Health Crystal Pool City of Victoria Langford Hub Room Shaw Communications

Design with community in mind stantec.com | (250) 388-9161

Jeffrey Bosdet/Douglas Magazine

From the Editor

Sacred cows, sacrificial lambs and the closing of The Bengal Lounge

As Douglas goes to press, a Change.org petition has collected the signatures of more than 5,900 people who oppose closing The Fairmont Empress Hotel’s Bengal Lounge, that nugget of nostalgia which Sandy Garossino described in The Observer as “a mockChurchillian mens-clubby watering hole romanticizing a mythical British Raj that never was ....”

While many people see The Bengal Lounge as the sacrificial lamb of our march to modernize, I’m thinking the room has long been a sacred cow. The idea of closing and transforming this space into something not yet revealed has awakened our collective fears that we have already sacrificed too much of Victoria’s heritage inventory. Now we cling nostalgically and somewhat desperately to what’s left: The Johnson Street Bridge, for example.

Perhaps because we are a tourist destination that trades on nostalgia, we tend to confuse nostalgia with true historic value. As U.S. diplomat George Ball once said, “Nostalgia is a seductive liar.” So much so that many people believe The Bengal Lounge always existed in its current form. But that’s not factual. Apparently, it was transformed into its current Empire-era look in the late 1960s. Previous to that, it was The Coronet Room, and according to the Times-Colonist, that transformation also caused an uproar. Francis Rattenbury, who designed The Empress at the turn of the 19th century, originally conceived the space as a reading room, not as a posh lounge.

Perhaps we fear losing the past because we lack a clear enough vision for what our city will become. As much as I love and value our heritage, I cannot imagine that we can thrive simply as a historic theme park, frozen in time. I think of Venice whose residents have largely fled the city because they can no longer afford to live there and maintain their homes, and where historical hubris has not paved the way for good-paying jobs for new generations.

I’ll admit that part of me resists losing The Bengal Lounge. I have truly loved it and always bring visitors there. Another part of me believes that Nat and Flora Bosa, who purchased The Empress in 2014 and have poured $30-million-plus into its renovations so far, are doing what smart business people do: looking for ways to keep their investment relevant and, dare I say, profitable. I think the Bosa’s mistake was in not immediately presenting a new vision for the space held by The Bengal Lounge, leaving people to imagine the worst.

I don’t see the Bosas’ move to change The Empress as crass capitalism or corporate greed, as some online commentators have insinuated. I think the Bosas sincerely value The Empress and its historic qualities, and thank goodness there are investors like them who have deep enough pockets to keep this heritage money-pit functioning, or we might well see our local landmark fall into ruin. And that truly would be a mistake of historic proportions.

Perhaps we fear losing the past because we don’t have a clear enough vision …

— Kerry Slavens kslavens@pageonepublishing.ca

6 Douglas

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www.douglasmagazine.com Volume 10 Number 2

Publishers Lise Gyorkos, Georgina Camilleri

Editor-in-chief Kerry Slavens

Creative & Technical Manager Jeffrey Bosdet

Production Manager Jennifer Kühtz

Editorial Designer Jo-Ann Loro

Associate Editor Athena McKenzie

Editorial Assistant Anneke Feuermann

COMPLETE EYE EXAMINATIONS BY

DR. JASON MAYCOCK DR. TOBY VALLANCE DR. MANDY LETKEMANN OPTOMETRISTS

contributing Designer Janice Hildybrant

Contributing Writers Steve Bokor, Adrienne Dyer, Peter Elkins, Carolyn Heiman, Shannon Moneo, Ingrid Vaughan, Mike Wicks

PROOFREADER Vivian Sinclair

Contributing Photographers Jeffrey Bosdet, Jo-Ann Loro

Contributing Agencies Thinkstock pp. 9, 32, 36-39, 44

Advertising Representatives Vicki Clark, Lory Couroux, Cynthia Hanischuk

general inquiries info@douglasmagazine.com

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Advertising Inquiries sales@douglasmagazine.com Online www.douglasmagazine.com Facebook DouglasMagazineVictoria Twitter twitter.com/Douglasmagazine Cover Dan Dagg of Hothouse Marketing is the interim chair of the new South Island Economic Development Association.

Photo by Jeffrey Bosdet Published by Page one Publishing 580 Ardersier Road, Victoria, BC V8Z 1C7 T 250-595-7243 E info@pageonepublishing.ca www.pageonepublishing.ca

Printed in Canada, by Transcontinental Printing Ideas and opinions expressed within this publication do not necessarily reflect the views of Page One Publishing Inc. or its affiliates; no official endorsement should be inferred. The publisher does not assume any responsibility for the contents of any advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not the publisher. No part of this magazine may be reproduced, in all or part, in any form — printed or electronic — without the express written permission of the publisher.

The publisher cannot be held responsible for unsolicited manuscripts and photographs.

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[In the Know ]

strength in numbers Stop the Bleeding

Who’s Winning

In 5 years, Greater Victoria dropped from 4th to 27th in GDP growth compared to Canada’s other large city regions.

The competition

Economic development in Kitchener-Waterloo and Halifax regions is funded by municipalities at $3 to $4 per capita.

27

$4

$4

$1

Nanaimo and Vancouver, Victoria’s nearest “competitors,” invest over $4 per capita.

We can only go up

Greater Victoria municipalities currently invest less than $1 per capita in regional economic development.

Canada’s 28 CMA’s by 2014 GDP Growth 1 Edmonton........................5.6 2 Saskatoon........................5.3 3 Calgary.............................4.5 4 Regina..............................4.4 5 Kitchener-CambridgeWaterloo...........................3.1 6 Vancouver........................2.9 7 Abbotsford-Mission........2.6 8 Halifax..............................2.6 9 Oshawa............................2.5 10 Toronto.............................2.4 11 Winnipeg..........................2.3 12 Sudbury............................2.1 13 Montreal...........................2.1 14 Moncton...........................2.1 15 Quebec City.....................1.8 16 Thunder Bay....................1.7 17 Windsor............................1.7 18 Hamilton..........................1.3 19 St. Catharines-Niagara..1.1 20 Saguenay.........................1.1 21 Kingston...........................1.0 22 Sherbrooke......................0.9 23 Saint John........................0.8 24 Ottawa-Gatineau.............0.5 25 London.............................0.4 26 St. John’s.........................0.0 27 Victoria.............................0.0 28 Trois-Rivieres..................-1.6

{

Victoria’s 2008 Rank

{ {

Victoria’s 2012 Rank Victoria’s 2013 Rank

Statistics from Conference Board of Canada

With Greater Victoria’s economic health almost hitting rock bottom, the majority of the region’s municipal councils have thrown support to the first-ever collaborative approach around economic development.

by Carolyn Heiman

T

welve of the region’s 13 city councils (Metchosin rejected participation) will chip in funding for the South Vancouver Island Economic Development Association (SVIEDA) to focus on economic development south of the Malahat, giving the not-for-profit organization a taxpayer-supported budget of about $650,000. The private sector and other funders have been asked to collectively contribute an additional $400,000 a year in order to leverage matching provincial and federal grants.

John Wilson, CEO of Wilson’s Transportation Ltd., and an industry supporter, praises the

“Many of us in business cross municipal boundaries five or six times a day.”

— Dan Dagg, Interim Chair, SVIEDA

initiative, saying: “A lot of people made a leap of faith to bring cohesiveness around economic development.”

Dan Dagg, SVIEDA’s interimchair, says for years economic development limped along, never getting wider regional support to get it to grow beyond the $80,000-per-year work of the Greater Victoria Development Association, a subcommittee of the Greater Victoria Chamber of Commerce.

Significant leadership changes at several municipal councils, coupled with the latest Vital Signs statistics signalling that the region had fallen to 27th place from

fourth place in gross domestic product (GDP) compared to other large city regions, opened the door to a different dialogue at the political level.

“When we started showing people that what we are doing isn’t working ... that the top three economic concerns for citizens were diversifying the economy, increasing jobs for graduates so we don’t lose them to Fort McMurray and places like that, and improving supports for entrepreneurs ... we built a strong case for support and the recognition economic

development has to be done and needs to be done regionally.

“The economy does not recognize municipal jurisdictions,” adds Dagg. People live in one municipality, commute to work in another and may do business deals in still others, all in the same day. “Many of us in business cross municipal boundaries five or six times a day.”

Like Tourism Victoria, VIATEC and the Victoria Film Commission — all of which started as committees of the Greater Victoria Chamber of Commerce — Dagg is banking on the new organization Douglas 9

to benefit all citizens in the region.

The new organization, expected to be fully functioning

by April, will have a larger staff and funding that jumps from $1 per capital to something nearer the $4 per capita funding of Vancouver and Nanaimo. “This is a new approach to economic development. It is not about amalgamation, but about collaboration.”

Wilson adds that the creation of the larger organization leaves the chamber to act as the voice of business and the economic development agency to focus on economic development, not politics.

An executive search firm is working on finding a CEO for the new organization, and Dagg adds that nothing limits staff from the folding GVDA from having a role in the new organization. Meanwhile, SVIEDA is reaching out to the leadership of the region’s nine First Nation communities to invite them to join as equal partners.

An increase in the number of jobs in the region, in medium household income and in federal and provincial funding for the region will be the show of success, says Dagg.

Meanwhile, Jim Hayhurst, CEO of Pretio Interactive, a mobile advertising company, commends the region’s municipalities for coming together and supporting SVIEDA. Hayhurst, who has lived here for 10 years, says, “I would have given us a barely passing grade” for economic development efforts.

“I think we have done a fine job by old measures. But it is not good enough for the 21st century. We are fighting against the Boulders, Austins and Singapores for investment.

We have to broaden our appeal and our case for investment and attracting talent. It is about bringing the smart economy and millennials to our region.”

With the new global online marketplace, he adds, “you no longer need customers here to begin a great business here ...

Economic development has to be beyond the downtown core, retail and tourism.”

10 Douglas

The Anatomy of Innovation LlamaZOO’s EasyAnatomy platform is changing veterinary education for the better.

And this Victoria Tech Startup of the Year for 2015 just got half a million dollars in private equity funding to take its groundbreaking idea to the next level.

Charles Lavigne (left) and Kevin Oke co-founded LlamaZOO in 2014 and quickly began earning innovation awards from VIATEC and Futurpreneur.

A Victoria-based startup whose 3D digital models of animal anatomy allow veterinary students to learn anatomy and perform dissections without scalpels, has raised $500,000 in private equity funding from a local investor to refine its education tech platform.

LlamaZOO Interactive’s EasyAnatomy platform uses medical information from MRI and CT scans to create detailed 3D models of animal anatomy.

The result, says Charles Lavigne, who co-founded LlamaZOO in 2014 with Kevin Oke, is that students gain a new learning tool and instructors gain a powerful teaching tool.

EasyAnatomy’s 3D visualization technologies explain abstract spatial

concepts to students while borrowing strategies from cognitive neuroscience to update course materials in real time. The beta platform is now in use at University College Dublin, the University of Surrey, U.K., and the University of Missouri.

Lavigne and Oke, both veteran video-game developers, say working on their edtech platform satisfies their need to make a difference.

Aside from the educational benefits, says Oke, EasyAnatomy helps universities address the significant costs of running anatomy labs, obtaining cadavers, and dealing with biohazards and lab upgrading.

“And it also goes without saying that there’s a benefit to animals,” he adds, noting

the growing protest against research on live animals.

With its infusion of funding, LlamaZOO, now a company of eight, plans to hire additional designers and developers to continue to develop its platform.

The founders acknowledge that 3D visualization in the study of human anatomy has been in use for several years. However, LlamaZOO’s approach is groundbreaking for the veterinary market, says Lavigne.

The veterinary niche, while smaller than the human anatomy market, is an ideal fit for a nimble company like LlamaZOO, Lavigne adds. The company also plans to develop other vertical markets for its platform.

Douglas Reads



Some of Victoria’s leading business thinkers have teamed up to reprise Business Diagnostics: The ultimate resource to evaluate and grow your business.

In the third edition of this infopacked book, Rich Mimick, Mike Thompson and Terry Rachwalski have created a powerful framework that allows business owners or business students to quickly evaluate the health of businesses in everything from digital

marketing to operations, financing, growth strategies and more.

Importantly, as business experts who have been successful in the fields of finance, management and executive development, the authors are mindful of the time crunch faced by both entrepreneurs and students, so they’ve kept the content strategic, valuable and crystal clear. You’ll want to keep this book on your desk. ceobusinessdiagnostics.com

Mark Your Calendar

Tech Convergence

Following Victoria’s successful trade mission to San Francisco this past September, the City will host San Francisco/Bay Area investors, influencers and startups for a “reverse trade mission” from February 17 to 19. Invitees include Joanne Fedeyko, executive director of C100, an association that provides a bridge between Canadian startup founders and the Silicon Valley Network.

Led by Mayor Lisa Helps and Kerri Moore, the City’s manager of strategic relations, the mission will connect investors to a curated selection of startups, showcase local innovation, highlight the city’s talent and post-secondary institutions and underscore Victoria’s quality of life.

The mission coincides with VIATEC’s Discover Tectoria on February 19. This one-day exposition of more than 70 Greater Victoria tech firms will showcase local entrepreneurs and products to potential investors, employees and customers. Participants include RevenueWire, Beanstream, Priologic Software and Foundry Spatial.

“The vast majority of revenue generated by local tech companies comes from clients around the globe, which means they infuse fresh foreign dollars into our local economy in salaries, taxes, rent and services,” says VIATEC CEO Dan Gunn.

“Local tech revenues have tripled to over $3 billion in the last decade.

To ensure continued growth we need to open channels and relationships with foreign investors who can invest in our companies while also opening valuable doors to new partners and customers.

It's a global game and we need global players to fully understand and appreciate the impact and potential of our local innovators and entrepreneurs.”

12 Douglas

Simon Desrochers

The city welcomes san fran TECH DELEGATES and VIATEC HOSTS Discover Tectoria

New Hub at City Hall

a Go-To Place for Business

O

cutting in December. “We hope that ne of the key recommendations this space becomes the go-to space for from the Mayor’s Economic the business community.”

Task Force was realized at While the City’s previous the close of 2015 with the opening development centre focused primarily of the new business hub at Victoria on development applications and City Hall. The purpose of the space — permitting, the new business hub, adjacent to Mayor Lisa Helps’ office according to the City, acts as a space — is to help both new and established for businesses and potential entrepreneurs connect businesses to access City with the tools and In 2014, there were resources, understand resources they need * processes prior to making for their businesses to business decisions and to thrive. business find support to troubleshoot “Council recognizes incorporations challenges within current that the small-business in Victoria. processes. They can access community in Victoria *BCStats business-minded staff, is the lifeblood, the technology and information on City prosperity generators, the well-being growth and planning. creators, the places that provide jobs The City of Victoria is currently hiring to our kids and our grandkids … and a business ambassador who will be we’ve all heard over the years how the a first point of contact for businesses City could get better at fostering and using the hub. nurturing it,” Helps said at the ribbon

1,713

“It’s a more positive kind of interaction with the City. Victoria is saying, ‘We are open for business, come talk to us.’”

— Jill Doucette, Synergy Enterprises, member of the Mayor’s Task Force on Economic Development and Prosperity.

Business in Action ▼ John Wilson, CEO of Wilson’s Transportation, will receive the 2016 Family Enterprise of the Year Award from the Canadian Association of Family Enterprise (CAFE) Vancouver Island at a February 11 gala at the Victoria Golf Club. Wilson’s is a three-generation family-ownedand-operated charter bus company based in Victoria. Its fleet includes 140 vehicles and up to 175 employees.

BEANSTREAM, a Bambora company and payment platform,

has announced its e-commerce platform is bringing Visa Checkout to thousands of merchants across Canada. Visa Checkout helps merchants improve conversions in online and mobile commerce by reducing payment friction. Consumers can check out and make payment seamlessly without leaving a merchant’s website.

FINDMEFITNESS.CA is a new matchmaking site for Vancouver Islanders to compare and find the

best fit from amongst hundreds of fitness professionals, from personal trainers, to kinesiologists and massage therapists. “Our goal is to bridge the gap between clients and fitness professionals,” says Steven Inglefield, founder and personal fitness trainer.

The Happy Goat Farm and Dairy, located in the Cowichan Valley, has received $26,100 to pilot and evaluate an alternative feed production system to produce fresh green forage year-round for its herd.

New links to mainland Tourists and locals looking for a scenic way to travel between Victoria and Vancouver could have new options this summer.

Riverside Marine BC has signed an agreement with the Greater Victoria Harbour Authority to set up operations in the Steamship Building on the Inner Harbour, and will also lease a waterfront lot in front of the building.

“It returns the Steamship terminal to its original historic use, which was to welcome visitors to Victoria,” says Ian Robertson, CEO of GVHA. “The key difference with this particular venture, versus others that have come in the past that haven’t worked, is that this is going to focus in on a tourism experience.”

Riverside Marine BC is a new division of Riverside Marine Australia, a family business incorporated in 1926. Riverside Marine BC, will be its first expansion into North America.

Nick Cheong, vice president of operations for Riverside, will be moving to Victoria from Brisbane to run the ferry service.

Harbour to Harbour Preliminary services are planned to start during the summer of 2016 with full operations for the

“Our focus is on tourism, targeting visitors, tour operators and the travel industry.”

Nick Cheong, VP of operations, Riverside Marine

2017 tourism season. The service will initially begin with daily sailings departing Vancouver in the morning, and from Victoria in the afternoon. The harbour-to-harbour trip aboard a high-speed jet catamaran with capacity of up to 300 passengers is expected to take up to 3.5 hours, with comfortable seating, Wi-Fi, local food and beverages, and guided interpretation of the area.

“The next major steps would be to carry out the refit of the vessel upon its arrival in Victoria, which at the moment is estimated to be mid-March 2016,” Cheong says. “We will also have to carry out terminal fit-outs and wharf

upgrades in both Victoria and Vancouver sites.”

Dock space in Vancouver is in final negotiations.

New crossing Fast Reliable Seaways (FRS), the Germanbased company which recently acquired a majority stake in Clipper Vacations, has also announced its intentions to establish a Victoria to Vancouver run.

Nanaimo has also renewed its effort to establish a foot passenger ferry service between that city and Vancouver by late 2016.

The focus will be on commuter traffic.

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March 4, 2016 9am to 4pm and March 5, 9am to 2pm English Inn, 429 Lampson Street Work with international business expert Doug Taylor of Pacific Business Intelligence on a country choice evaluation and rationale, competitive bench marking, market entry strategies, product adaptation requirements, market positioning, and more. This bootcamp includes five hours of one-to-one mentorship with Taylor.

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If your company has an annual declared revenue between $200,000 and $50 million — and you want to access new export markets, you could be eligible for funding via the new CanExport program delivered by the Trade Commissioner Service (TCS) of Global Affairs Canada, in partnership with the National Research Council Industrial Research Assistance Program (NRC-IRAP).

CanExport will provide up to $50 million over five years in direct financial support to small and medium-sized Canadian enterprises wanting to develop new export opportunities. To gain in-depth knowledge on how to access CanExport opportunities, the Greater Victoria Development Agency (GVDA) is offering a series of workshops in their 2016 Business and Export Expansion Series:

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How Export Can Help Your SME Expand to New Markets

“Less than 5% of SMEs export, and SMEs make up 95% of the companies in Canada.

We sell ourselves as a trading nation, but we’re not. It’s based on what we take out of the ground and what we cut down and this is the reason we have the problem we have in our economy today.”

— Doug Taylor, Pacific Business Intelligence

Inn o va t i o n | D e s i g n | B u s i n e s s | S t y l e | P e o p l e

On the move

KRISTEN KITCHEN has joined Fort Properties as leasing and marketing manager. She manages tenant relationships and oversees marketing initiatives in support of the company’s goal of designing and creating space that contributes to community wellbeing. She was previously a commercial real estate sales and leasing representative with CBRE Limited, the world’s largest commercial real estate and investment firm.

Appointed John Hankins is the new CEO of the Nanaimo Economic Development Corporation (NEDC), taking over from Sascha Angus. Hankins, who was VP of Calgary Economic Development for five years, most recently operated an international business consulting company, servicing companies seeking new markets in Canada and abroad.

Says Hankins, “The city and regional district of Nanaimo have such great energy and an enviable quality of life.”

Community Changes  BILL LEWIS, general

manager of the Magnolia Hotel and Spa, is the new chair for Tourism Victoria. Lewis takes over from Dave Cowen of The Butchart Gardens.

 Bruce Carter says he’ll leave the Victoria Chamber in June after 12 years as CEO, growing the Chamber’s profile and membership.

 Ken Kelly, GM of the Downtown Victoria Business Association, will retire in June after 10 years with the organization.

Kelly has been a longtime enthusiastic advocate for a vibrant downtown core.

In Memoriam Gerry Durant has joined Asyma Solutions as regional manager of the company’s Victoria office. Asyma provides implementation and support services for Sage 300 (formerly Sage AccPac). Durant has a 10-year history working for publisher Sage Software.

Small business champion Ken Stratford has died at the age of 77 of bone cancer. Stratford, one of driving forces behind the non-profit Business Victoria, died on January 10 at Victoria Hospice. Over his 30 years with Business Victoria, he helped to launch 2,500 small businesses. Before his involvement with the organization, Stratford held executive positions at B.C. Ferries and B.C. Transit. His life’s work is characterized by creating opportunities for others and the promotion of economic development.

New Partnerships

Meghan McKenzie has been hired as the new VP of sales at Pretio Interactive, a mobile advertising company. She has worked with multinational brands on advertising campaigns in Europe and North America. She takes on the responsibilities of Vivienne Damatan, Pretio’s current VP of sales (on parental leave), after which both will continue in permanent senior leader roles.

Designer Jordan Clarke (left) and software developer Nick Rempel have launched Kiln Software, a company designed to help servicebased businesses accelerate growth. Kiln partners with aspiring entrepreneurs and crafts-people to turn ideas into businesses, filling in service gaps in areas such as design and brand direction, and the development of websites, software and apps.

Mike Wicks, president of custom publisher Blue Beetle Books, has partnered with Paul Abra of Motivated Coaching. Says Wicks,

d.g.bremner & co.

“Paul’s background in publishing and business development will be invaluable to the company as we expand the range of our small business e-magazines and library of e-books, as well as publish several custom hardcover books in 2016.”

Douglas 15

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Call to Action Connect: How Companies Succeed by Engaging Radically with Society

by John Browne with Robin Nuttall and Tommy Stadlen promises a revolutionary way of thinking about business — one that focuses on how business can change to thrive in the 21st century by healing the rift between business and society.

Through storytelling and interviews with global leaders like Facebook’s Sheryl Sandberg and Goldman Sachs’s CEO Lloyd Blankfein, Browne and his co-authors show how companies can connect with society, offering practical tips for taking strategic action. Consider it an inspiring call to arms.

Business Lingo

Reply Allpocalypse: Relevant to large organizations, where an accidental corporate-wide reply all — and the inevitable stream of followups — can crash the entire email system. It’s always wise to stop and consider before hitting reply all.

Making Connections Not all connections require the Internet. Use these tools and tricks to network with peers and colleagues.

16 Douglas

Cash Point Intuit GoPayment card reader, monthly pricing options, gopayment.intuit.ca

Looking to expand your business through mobile sales? Tech such as the Intuit card reader can be used on phones or tablets to process sales at any location, such as trade fairs or markets. Most systems offer merchant services to simplify refunds and track transaction history, as well as encryption for buyer peace of mind.

Find Your Tribe Joining a professional association goes beyond schmoozing. Strengthen your network, learn from peers and further your career.

Groups like Sales and Marketing Executives Victoria meet monthly to access new info, exchange ideas and explore trends.

Not Just For Kids The Lego Serious Play Method looks to improve group problem solving through workshops where participants build 3D Lego models, which are used for group discussions, knowledge sharing, problem solving and decision making.

The Virtual Door Man The Ring Video Doorbell, $249, ring.com

If you’re missing deliveries, the Ring Video Doorbell lets you answer your door from anywhere using your smartphone.

Featuring a wide-angle HD camera with night vision, it can provide a clear view of the area in front of your door, day and night. Motion-triggered alerts sent via the Ring app notify you of arriving guests and deliveries.

M AGA Z INE ’S

TO WATCH

Supporting our community by recognizing innovative new businesses

Task Master Parrot Flower Power, $64, parrot.com

There’s no question certain chores get neglected around the office. While you may not need that device that tells you to change the dead light bulb, many an office plant has turned brown and crunchy before it gets any overdue love. The Parrot Flower Power monitors and analyzes the four parameters essential to a plant’s health. Whenever it detects that attention is needed, you will receive notification on your smartphone or tablet.

Office Space Think outside the standard conference-room box and look to Hotel Zed’s Think Tank when you’re planning your next big brainstorm. This space invites groups to innovate their next big idea while surrounded by fun and funky décor. When the focus begins inevitably to wander, groups are encouraged to grab a PingPong paddle and play ball or grab a controller and hit the back-to-back Wii stations.

The exposure winners receive through 10 to Watch gives them well-deserved applause, builds brand recognition and shines the spotlight on the Island’s vibrant spirit of innovation and entrepreneurship.

Watch for the winners in the Apr/May issue of Douglas magazine.

TITLE SPONSOR

SUPPORTING SPONSORS

douglasmagazine.com Douglas 17

Tofino Mayor Josie Osborne on the mudflats behind the Tofino Botanical Gardens, which she owns with her husband, George Patterson.

Al Hasham keeps up a rigorous work schedule, which he balances with a regular running program and time out at his Shawnigan Lake getaway.

18 Douglas

small

In conversation with josie osborne ■ BY Athena Mckenzie ■ photo by Eugénie Frerichs

As mayor of a small community known as a global tourism destination, Josie Osborne is making a big impression, navigating Tofino through a recent highprofile tragedy and keeping the town on course for future economic success.

town big profile Josie Osborne

is in problem-solving mode, using a tidal app on her phone to find me the best time to go for her recommended hike at Schooner Cove after our interview. Her enthusiasm for the endeavour and the area is contagious. It might be 8:30 a.m., but Osborne has already completed her own daily walk and is ready for a full day of meetings.

Rain or shine, she’s up at 5:30 most mornings for a five-kilometre trek with friends on Chesterman Beach — the stretch of beach we’re currently admiring from our perch at the Driftwood Café at The Wickaninnish Inn. Given her full days, that early exercise is often the only time she has for herself.

Being mayor of a town with a population tuff talk of 2,000 might not seem like a high-pressure “Looking at the gig, but Tofino (known as “Tuff” by locals) sociopolitical history of Clayoquot Sound, has big-name recognition. In fact, the Tofinowith its blockades Long Beach-Ucluelet area is globally lauded for and protests its rugged coastal beauty, rainforests and surf about old growth culture, which draw more than a million tourists logging, Westerners to the area every year. But the recent whalecould benefit from understanding watching accident, when six people drowned how fundamental a after the capsizing of the Leviathan II, brought relationship the First the small town worldwide media attention of a Nations have with tragic nature. the land.” “[Josie] really represented our community and our values well in that situation,” says Jen Dart, executive director of the Tofino-Long Beach Chamber of Commerce. “We were very glad to have her as the face of Tofino.”

Raised on Vancouver Island in Central Saanich, Courtenay and Nanaimo, and educated at the University of British Columbia and Simon Fraser University, Osborne moved to Tofino in 1998 to work as a fisheries biologist for the Nuu-chah-nulth Tribal Council.

“I figured I would stay here for three, maybe five years max, and then I would go back to the big city,” Osborne says. “And I never left. Which is pretty much the story of most people who have moved to Tofino. They come for a weekend, stay for a lifetime.”

After ten years with the tribal council and then a stretch at the Raincoast Education Society, an educational non-profit, she turned her focus to the tourism-based enterprises that she and her husband own, including

a café, two accommodation businesses and the Tofino Botanical Gardens. She “stepped away from the business a bit” and from her role as chair of the Tourism Tofino Board of Directors after becoming mayor in January of 2013 when the previous mayor resigned.

She was re-elected by acclamation in November 2014. Locals describe her leadership as communicative and accessible.

“She brings a long history in the community from before she got into municipal politics,” Dart says. “She was always a prominent figure in the community, so everyone feels they can speak directly to her, which I think is quite rare.”

That sense of community has much to do with why Osborne stayed in Tofino.

“There is something about being in a small town where, when the times get tough, you’re all here for each other,” she says. “And obviously, that really showed with the Leviathan tragedy. It brings a lot of meaning to people’s lives when you know you’re really connected to people. So whether

you create that neighbourhood in a big city or in a small town, it’s something that has always been really important to me.”

Your recent PowerHERhouse presentation in Nanaimo focused on the difference between having a tough skin and a permeable one.

How do you use this as mayor?

One of my misconceptions about politics was that you need a very tough skin because of the barbs and arrows that are inevitably going to come your way. I wasn’t sure I could take that kind of personal attack. That was probably the most difficult part of making the decision to run for mayor. Have you read The Four Agreements [by Don Miguel Ruiz]? One of them is: don’t take things personally. I very much have taken that to heart. That means when you’re listening to somebody who is offering criticism, you have to be able to filter criticism of the idea from criticism of you as a person. That’s why you need that permeable skin, because you’ve got to let the right stuff in and you’ve got to keep the wrong stuff out.

You also have to let yourself feel. The office is very important and there is a responsibility that comes with the office, but you’re still a human being.

Douglas 19

Did this practice help you get through the recent tragedy with the Leviathan II?

It certainly did. After the Leviathan, I knew I had a particular role to play and I needed to step up and do it. And I absolutely did it. But I gave myself time to be alone or space to be with a good friend or my husband — the few people I would trust to show everything ...

People look to their leaders for strength, and they need to see that. It wouldn’t be appropriate for me to not be able to show that strength. At the same time, it’s important to be humble and show that you’re human. Everybody needs to see that there are points where you might be struggling but that you know how to get help.

One of the other things that was really important to me in the immediate days afterwards was to create that space, to allow everyone, especially the survivors, to do what they needed to do without being highlighted by the media or being contacted by the media.

So I was available pretty much 24/7 for the first three days, because that gave the media somebody local to hear. I didn’t want it to have to be somebody who had been heavily involved in the tragedy.

What does the path forward look like?

It’s a rocky road and there have been a lot of ups and downs … I think it’s really individual.

It’s actually been a huge learning lesson about the resilience we have as individuals and as a community, but also about the different pace at which people heal. It’s really important to respect people for where they’re at and to make sure they’re getting the help they need. It’s just going to take time, that’s really the only thing.

How closely do you work with the area’s First Nations?

We have a very cordial and collaborative relationship. There are definitely hard topics to discuss, but we are able to sit down and discuss them. What is best about the relationship between the municipal government and First Nations is there is a high level of mutual respect, which means that we can tackle those harder conversations. And there’s not a sense of having to rush. We’re all here to stay and we’re trying to figure out the best way to coexist together.

Speaking of hard conversations, as a fairly vocal environmentalist, how do you balance that with important local industries like salmon farming?

I think that the resource economies of Clayoquot Sound are an important part of what we do. Salmon farming is a big employer and it brings a lot of value into the local economy.

Logging, not so much anymore. In fact the Ahousaht First Nation has recently stated that

they have stopped all industrial logging [in their territory]. I think people are pursuing more sustainable and renewable ways. I completely accept that humans use resources and that we depend on them for a high quality of life. These industries employ us and it’s really important to be able to take care of your family and live within your means. I think that’s exactly how I view it: that we need to live within our means, both as individuals and within the environment.

Being declared an UNESCO Biosphere Reserve brings a greater sense of responsibility to living within our means in this world. So salmon farming, if its activities are not causing irreparable damage or harm, then I accept that.

Old-growth logging is not one of those things.

What are the concerns for small businesses in Tofino?

Dealing with seasonality has been a big issue.

A year and a half ago we conducted business walks, and a dominant theme that came out of that was that businesses wanted to be less seasonal so they could afford to pay employees more so they could afford the housing in town. There is a perfect storm of seasonality and affordability that affects business, and the housing piece is a big one. Businesses are really struggling to find suitable employees who have adequate accommodation.

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Was that why you held a forum on tiny houses?

We did a housing needs-and-demand assessment and that was finished in June, and we have a much stronger understanding of who lives in Tofino: whether they’re single, or in couples or have families, what their median incomes are, what they can actually afford to rent and what rents are — and we know there is a big gap. And so we’ve been going through some of those numbers with people in focus groups and forums, like the tiny-house forum, to really understand how it is that people want to live and what they’re looking for and what obstacles they have finding rental accommodation or getting into the market.

I was looking at your Twitter feed and something that came up a lot is participatory budgeting.

I’m very interested in citizen engagement and how to better reach people and have them influence decisions between elections — not just voting for leadership and then letting them make all the decisions. Participatory budgeting is a way of including the community in the decision making about municipal budgets.

So instead of council making the decision about the grants that we give out every year, last year we turned it back to the community.

The organizations that applied for grants did up displays and we had an exposition, a voting day when people came to the council chamber and they talked to the organizations, learned about the projects and voted for the ones they thought were the best for the community.

You seem very engaged with social media.

What advantages do you find in using it?

Social media does two things for me. It’s a way of reaching a part of my constituency I think has not typically been engaged in municipal politics. You might think that’s the 40-andunder set, but in Tofino I find there is a wide variety of people of all ages that are using Facebook especially. Twitter I find a great way to reach out to the bigger world. And I really enjoy Twitter for the political side and learning about what other major centres are doing ... one of the themes I follow a lot is affordable housing to see what other towns are doing.

What about your future? Elizabeth May has said she’d love you as a Green candidate — do you see yourself in federal politics?

It’s too soon, but never say never. I am hesitant about the deeply partisan politics at the provincial and federal levels. I feel really fortunate to be where I am at right now, because I’m the mayor of a very small town that has a very big profile. So I think I have a place from which to be an influence without having to join a political party. It’s not a bad place to be. ■ Douglas 21

The brains at FunctionFox figured out early in the APP game that if you accurately and easily track time and projects, your creative company can move faster and worry less.

Douglas looks at the big idea of one of Victoria’s most successful techsolution exporters.

F

ifteen years ago, Suburbia Studios owner Mary-Lynn Bellamy-Willms visualized a better way for small creative companies, like her own Victoriabased advertising agency, to track time and projects. Not satisfied with the limited options out there, she decided to create her own webbased solution, called TimeFox, and founded a brand-new company to take the in-house app global.

To head up the new company, dubbed FunctionFox, Bellamy-Willms appointed Corina Ludwig, who had recently joined Suburbia, bringing with her 25 years of experience in the design and advertising industry with large firms in Calgary and New York.

They soon added two additional partners: Solveig McTrowe as VP of customer service and Tor Henning (Tor-H) Sonvisen as chief technology officer.

McTrowe had previously worked with Ludwig in Calgary and shared FunctionFox’s vision for helping small creatives run more efficiently, and Sonvisen had the necessary expertise with database and Internet app development to roll out TimeFox on a global scale.

 Corina Ludwig, president of FunctionFox, knew firsthand what creative agencies needed in their software, based on her advertising and marketing background.

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the big idea BY Adrienne Dyer photos by jeffrey bosdet

Like a Fox Today, TimeFox is the leading solution for advertising, graphic design communications and other small creative companies worldwide.

Local clients include Redbird Communications, Atomic Crayon and The Tartan Group. With a team of 27 “foxes” that serve hundreds of thousands of users in 120 countries, FunctionFox is a local company with a big global impact.

You’ve Come a Long Way To understand how truly innovative FunctionFox is, let’s go back in time 15 years to when the company launched its web-based technology.

Back then, telephone banking was all the rage, and Google headquarters had barely graduated from Susan Wojcicki’s garage. In terms of web-based technology, the business world was just emerging from its version of the Dark Ages.

“It was a very challenging time to develop web-based software,” admits Bellamy-Willms, “but all the indicators were there.

Although a large part of the U.S. did not yet have high-speed Internet connections when we launched, we were confident that this would develop quickly. Tor-H [the CTO] was a magician and made a product where the customer experience was good, even without speed.”

After hundreds of phone calls to other small creative companies, Ludwig and Bellamy-Willms knew there was a huge market for a product that could track project time and budgets, prevent scope creep and create quick estimates. But how did they literally take over the world with a product that started as an in-house tool?

“There’s no secret sauce here, other than a lot of hard work and determination,” says Ludwig, who explains how they focused their marketing efforts on small creatives close to home the first few years, building a client base across North America. They kept their product simple so clients could get started immediately. They also made TimeFox available by monthly subscription with no annual fee, with pricing based on the number of users so that the product could grow with the company.

“We had a salesperson on our team originally from the U.K. — so he heavily targeted that area and when we started to get traction, we added another salesperson to that region and started advertising over there,” says Ludwig. As they became successful in one area of the world, they expanded to others, including Australia and New Zealand.

“We started buying more global lists and marketing to them. It was a slow process, but referrals started

6

Secrets of Success

from FunctionFox President Corina Ludwig

1 Stay true to your company vision and mission.

2 Define and know your

market. Target all resources and training to that market. Don’t try to be everything to everyone.

3 Hire the right people,

and fire quickly when employees don’t work out.

4 The company’s vision,

goals and market all need to be communicated to employees and then to the customers.

5 Compensate your

employees well; listen to their needs. Set goals and give new opportunities to grow and learn.

6 Develop a good, solid

product that is simple and reliable.

coming in and the word started to spread.”

At the same time, online technology took off. “In the fifth year of operations, everything shifted,” says Bellamy-Willms.

“We were excited to be a part of the evolution (or was it a revolution?!) of online software as a service.”

How to Outfox the Competition Ludwig credits a big part of their worldwide success to their first-hand knowledge of the challenges faced by small creative companies. “We know our niche, and devote all our resources and training to serving that market.”

She says their targeted focus sets them apart from their competitors, who “try to be everything for everyone.”

She says niche orientation also creates their ability to go “above and beyond at every Douglas 23

Social Media Camp 2016

possible opportunity,” winning thousands of “raving Fox fans” as clients who value the fast and personalized customer service they consistently receive. “We still say today, we’ve built this company by one conversation at a time.”

Many of their clients, she says, claim they would not be in business at all without FunctionFox. “After the earthquake in Christchurch, New Zealand, one client was able to keep their business running from home because we had all of their data stored on our system,” Ludwig notes. “This is a major advantage of a webbased program.”

FunctionFox also offers hundreds of resources and even free business advice to help clients succeed. It’s another huge valueadd that keeps the company ahead of the pack.

Atmosphere Matters The company’s team works from a space that’s as creatively designed as the company itself.

With features like glass dividers, living walls, a full working kitchen and a private “chill room” where anyone can retreat for private meetings or a few minutes just to relax, FunctionFox headquarters provides maximum comfort in chic, modern style.

Do the cool surroundings increase productivity and job satisfaction? You bet, says Ludwig.

But there’s a lot of substance behind the style. If you want to remain an industry leader, she says, “you need to hire well, fire quickly when things don’t work out and always take employees’ ideas and needs into consideration for everything from workplace design to selecting new members of the team.

“We look for employee diversity, not just job skills,” Ludwig explains. “What can the candidate bring to the team that someone else can’t? How can they contribute, and how can they give back?”

FORWARD Thinking So what lies ahead for this forward-thinking company? “We’re in the process of releasing a new and improved product interface and updated FunctionFox brand,” says Ludwig, adding that the company’s main focus will always be helping small creative companies succeed. “It’s taken a lot of hard work and dedication, but the passion and reward of helping other creative companies has always been at the forefront.”

You can learn a lot about companies from their branding, and the fox theme is everywhere at FunctionFox headquarters, from the terminology to the décor. But why did they choose a fox for their namesake and mascot?

“That’s easy,” says Ludwig. “Foxes are clever, creative, friendly and memorable.” ■ 24 Douglas

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Douglas 25

Making it local, taking it global

by Shannon Moneo

M

ention Vancouver Island’s specialty manufacturing industry and many of us would be hard-pressed to name half a dozen companies that are making and selling highly evolved products to customers around the globe. But in nondescript buildings in Central Saanich or at large premises near Nanaimo, Islanders are proving that unique diagnostic medical tools, specialty air compressors and intricate fishing lures can be designed and built here.

“We definitely have a manufacturing industry on Vancouver Island. The companies are global leaders in what they sell,” says John Juricic, owner of Harbour Digital Media and chair of the Vancouver Island Manufacturing Sector Advisory Board. “Why is this hidden under the radar, when, economically, it’s flourishing on Vancouver Island?”

WHERE DO WE STAND? When we think of Island industries, three Ts typically take hold: technology, tourism and trees. In reality, on the Island, over 900 manufacturing businesses exist, according to StatsCan. Some are small-scale producers of sea salt or wood furniture. But others make specialty goods like bicycle components or very pure laboratory chemicals. They’re not the sort of things you pick up and fondle at the mall or crack open at the dinner table, which explains why they’re off the radar.

In Greater Victoria alone, roughly 120 manufacturing businesses unobtrusively generate millions of dollars in revenue each year, with half located on the Saanich Peninsula, says Juricic, who has served as a board member of the BC Chamber of Commerce and is also chair of the Sidney-North Saanich Industrial Group. The group represents about a dozen manufacturers located on the Peninsula, many near Victoria International Airport or Keating Industrial Park. Included are Scott Plastics, Seastar Chemicals, Nicholson Manufacturing, Schneider Electric, Viking Air and AXYS Technologies.

26 Douglas

The growth of specialty manufacturers on the Island is a sign of an increasingly sophisticated economy.

When George Hanson, president of the Vancouver Island Economic Alliance (VIEA), examines Island specialty manufacturing (SM), it’s through a boutique lens. We’re not making cheap plastic bottles or budget textiles in huge factories with legions of low-paid workers. “Our products have global demand and command premium price,” says Hanson, who’s worked in Nanaimo’s business sphere since 1993.

“Vancouver Island will never be a major industrial hub; we’ll never be a Shanghai.

That’s not who we are. That’s not who we want to be. We have to stop trying to be like everyone else. We should put our focus on being who we are. Look at companies that want to be here.

Why? What is it that we have that’s unique, that allows new business to succeed?”

SMART IDEAS NOT BOUND BY BORDERS One SM success is VMAC Global Technology.

Since 1990 VMAC has been manufacturing vehicle-mounted air compressors at its site in Cedar. Today, all of VMAC’s departments operate out of a 33,000-square-foot facility, employing almost 100 people at good-paying jobs. It’s average annual growth is 13.5 per cent over the last four years, says VMAC operationalexcellence director Stuart Coker.

The company, which has 400 dealers around the world, most in North America, has continually refined its products to meet trends and new vehicle designs. VMAC’s Underhood 70 air compressor system is an industry leader, with few competitors in its market.

“As you walk around the building, you can sense a pride in what we do,” says Coker, an engineer who started with VMAC in 2000 after emigrating from England to Vancouver Island,

which he’d visited on a prior trip. “I fell in love with Vancouver Island.”

Company founder the late Tony Menard moved VMAC from Kitchener, Ontario, because he wanted his children to grow up on Vancouver Island, his childhood home. As the business grew, and co-founder Jim Hogan came west to join Menard, the decision to move VMAC to the Island proved savvy. As Coker says, buying 10 acres of land and building a huge facility would have cost up to four times as much in the Lower Mainland.

As well, the perception that it’s a hardship to ship goods off the Island doesn’t hold water.

Courier FedEx realized that Vancouver Island was generating a lot of business, so in early 2014, it opened a transport hub at Nanaimo Airport and began to aggressively court customers.

“If you’re manufacturing massive equipment, the Island’s not so good. For a company like VMAC, the Island makes sense,” Coker says.

“Shipping from the Island to the U.S. is the same as shipping from Richmond to the U.S.” While VMAC has gotten offers to sell from larger companies, VMAC won’t leave Vancouver Island, Coker says.

In Saanichton, Quester Tangent has become a highly specialized designer and manufacturer of sophisticated data and control systems for passenger trains. It continues to enjoy annual double-digit growth, with 95 per cent of the components exported, says COO Bill Collins.

Around 60 employees work at Quester’s 20,000-square-foot facility, where in 2015 over 15 million U.S. worth of work was completed.

“No one else in Canada is doing this.

We’re like an auto-parts supplier for trains,”

Jeffrey bosdet/Douglas Magazine

GETTING READY TO FLY AT VIKING AIR It may look like a mysterious puzzle piece, but this green contraption is actually the in-production cockpit of the 100th Viking Twin Otter Series 400. The milestone aircraft is expected to receive a Certificate of Airworthiness in mid-August 2016 and will remain in the Viking family. It will operate as part of Viking’s Pacific Sky fleet, Viking’s sister company headquartered in Nigeria.

Douglas 27

28 Douglas

Jeffrey bosdet/Douglas Magazine

says Collins. But unlike Magna International, Quester is a low-volume manufacturer that produces 10,000 instead of 100,000 units of a mix of intricate products.

This puts Quester firmly in Hanson’s “boutique” category. “If you’re dealing in high volumes, this isn’t the place to be,” says Collins. While companies who manufacture trains, like Bombardier or China Rail, complete in-house manufacturing of similar products, Collins says Quester does it better.

“We’re more cost-effective, more agile. We can innovate.” Collins attributes that nimble market response to Quester’s strong suit: access to an extremely skilled workforce. “They are people who are here and want to stay here for the long term,” he says. The loyalty is tied to profitability and the natural amenities of the Island. Attractive wages are paid, and a healthy workplace prevails. Because Quester manufactures products that last two decades, having long-term staff who remember the 20-year-old process is an advantage.

StarFish Medical has been designing and manufacturing one-of-a-kind medical devices, such as ultrasound eye scanners and prosthetic heart valve testers, at a 24,000-square-foot facility near Uptown for global clients. “We make products that are as big as your fist and that cost $10,000,” says StarFish founder and CEO Scott Phillips. Being on an island hasn’t been a problem. If StarFish were producing kayaks, shipping costs might be a hardship, but the price to ship a small medical device to Boston is little more

Manufacturing chiropractic equipment at Starfish Medical

than an afterthought, says Phillips, who has a degree in engineering physics. Whether Island firms are building a $7-million plane destined for Malaysia or a $60,000 U.S.-bound robotic system, profit ratios are good and the cost of shipping is a small part of doing business.

With 2014 growth of 40 per cent and over 70 staff, Phillips has no regrets about opening shop on the Island 16 years ago. When StarFish surfaced, Phillips carefully grew the company because of limited capital.

About three years later, StarFish was swimming strong.

“A Silicon Valley of manufacturing — I think that’s the role Langford could play.

Langford’s got the space; it’s got the affordability.”

— JOHN JURICIC, CHAIR, VANCOUVER ISLAND MANUFACTURING SECTOR ADVISORY BOARD

And because he’s not running a factory in a metropolis, Phillips can continue to ride his bike to work.

SHORTCOMINGS AND LONG SHOTS At VMAC, a large challenge has been the Island’s limited labour pool. “People don’t instinctively look to the Island,” Coker says.

Because VMAC uses the Lean manufacturing philosophy, VMAC wants employees who can adopt the Made in Japan principles, which include being open to new ideas and acknowledging personal limitations. People from across Canada and beyond apply for work at VMAC, but not a lot of them have the necessary qualifications. Finding the right people for the job hasn’t been easy, Coker says. Throwing up one more hurdle is the lack of technical education on the Island.

Vancouver’s B.C. Institute of Technology is the closest institution to offer machinist apprenticeship training, Coker notes.

But there are pleasant surprises. VMAC’s cryogenic compressor specialist, a high-level engineer, emigrated from China to Toronto, and when the Island job arose, he was keen to escape the big city. Still, Coker would like more government-led promotion of the Island. StarFish, too, has challenges finding qualified staff. In late 2015, the company had 10 vacancies.

One untapped source of skilled employees is Vancouver Island’s four major educational institutions: Vancouver Island University, Camosun College, Royal Roads University and the University of Victoria. Instead of focusing on “putting bums in seats,” Juricic says, the schools should be talking to one another to ensure that training gaps are filled and that innovation is nurtured.

Hanson has asked post-secondary foreign students why they’re attending school on the Island. Inevitably, it’s because their parents chose safe Canada over the gun-infatuated U.S., then the south coast of B.C. because of mild weather, and finally Vancouver Island because it’s less expensive than Vancouver.

Many post-graduate students want to remain on the Island and start a career. Yet, under the B.C. Provincial Nominee Program, which oversees immigration of all foreign workers based on the needs of B.C. employers, from 2010 to 2014, there were only 1,425 applicants in the Skills Immigration stream for Vancouver Island, with 1,075 of those earning a nomination for permanent residency.

Hanson doesn’t think we have to “cast a net” to capture skilled workers. “It’s not about more glossy brochures, it’s about collaborative efforts.”

For Collins, it’s about Victoria International Airport and the need for more direct flights.

“Getting people on and off the Island is

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Douglas 29

Manufacturing Stats Vancouver Island/ Coast Region

Share of B.C./Provincial Jobs in the Goods Sector Manufacturing............................ 10.6% Agriculture................................... 15.6% Construction................................ 15.5% Fishing, Hunting, Trapping......... 0.0% Forestry, Logging, Support Activities....................... 22.5% Mining, Oil, Gas Extraction...... 13.9% Population aged 15+.............. 657,000 Total Population....................... 775,400 Capital Population.................. 370,900 Nanaimo Area Population..... 149,300 Unemployment Rate................... 6.3% Labour Force Participation....... 57.7% Source: WorkBC, Regional Profiles, November 2015

Vancouver Island Businesses with Employees — Goods Sector Manufacturing.................................960 Agriculture, Forestry, Fishing, Hunting..........................................1,285 Mining, Oil, Gas Extraction.............69 Utilities................................................37 Construction..................................3,509

Employment by Goods-Producing Sector, Vancouver Island, 2014 Manufacturing........................... 17,600 Construction............................... 29,500 Forestry, Fishing, Mining, Oil & Gas........................................9,400 Agriculture.....................................3,800 Utilities...........................................1,700

Average Hourly Earnings in B.C., Goods-Producing Sector, 2014 Manufacturing........................... $28.67 Construction............................... $32.32 Forestry, Logging, Support Activities...................... $32.65 Mining, Oil & Gas Extraction... $54.34 Utilities........................................ $49.52 Source: State of the Island Economic Report, October 2015

30 Douglas

difficult both for cost and convenience,” he says.

When Quester’s equipment is being commissioned, Quester staff have to get to the client, quickly.

Reaching Kuala Lumpur becomes a marathon. As well, when Collins ferries high-spending clients to Quester’s factory, he takes the back way, along West Saanich Road, rather than the direct route near Keating Industrial Park, to avoid “For Sale” signs and run-down vacant premises that paint a less-than robust image.

One debatable roadblock is the cost of housing in sections of Greater Victoria. Juricic considers lack of affordable workforce housing a major deterrent to the SM expansion, along with the shortage of available, skilled tradespeople and transportation options. While Victoria International Airport, which sits on federal land, has made space for companies like Viking Air and Scott Plastics, Central and North Saanich haven’t done much to create workforce housing for employees in the area. Juricic estimates about 50 per cent of the employees in the 12-member Sidney-North Saanich Industrial Group live in the West Shore.

To draw desirable workers in the 25-to-40 age group there needs to be affordable housing, schools, shopping, easily-accessed transport and jobs that are close to home. But, as Juricic points out, in these volatile times of fluctuating commodity prices and the lower Canadian dollar, skilled employees are returning to Vancouver Island from Alberta and beyond.

ROOM FOR MORE Because not much property is left for industrial development in Victoria or Saanich, the promised land to the west beckons. Juricic says, “A Silicon Valley of manufacturing. I think that’s the role Langford could play. Langford’s got the space; it’s got the affordability.”

An Economist’s Forecast for Island Manufacturing Take the Trans-Pacific Partnership (TPP) trade agreement, sprinkle in rising house prices, stir in the devalued loonie, and what comes out is a somewhat bubbly picture for Vancouver Island’s specialty manufacturing sector, says a senior economist with MNP consultants.

“It all depends on what you’re producing,” says Susan Mowbray, author of the 2015 State of the Island Economic Report, prepared by MNP for the Vancouver Island Economic Alliance. Products for niche markets stand a good chance of success, as long as the employer can find qualified employees, Mowbray says. Alternatively, lower-margin food products or items that can

Not surprisingly, Langford Mayor Stew Young has envisioned both a hi-tech park and a specialtymanufacturing centre in his municipality. He’s already got his eye on a 40- to 50-acre spot not far from the new Leigh Road Interchange that would be suitable for a hi-tech business park. He’s also seeking a roughly 200-acre chunk of land for an SM park.

“I want residents of Langford to live and work in the community,” Young says, confident of his vision.

Beyond Greater Victoria, costs diminish and room to grow expands. The State of the Island Economic Report, released this fall by Hanson’s organization, VIEA, shows the benchmark cost of a single-family home in June 2015 in the Victoria area was $508,900; Duncan, $298,300; Nanaimo, $350,200; Qualicum/ Parksville, $369,800; and Comox Valley, $334,000.

The living wage for Victoria was also the Island’s highest, at $18.93 per hour compared to $17.04 in the Cowichan Valley and $17.30 in Qualicum/ Parksville. On the whole, Vancouver Island is a costeffective locale for SM compared to the mainland, where $1 million gets you track housing and oneway two-hour commutes are the norm, Hanson says.

One vision that could have implications not for just Island manufacturers but for the whole of B.C. is a Port Alberni container facility, Hanson says. Instead of shipping out of Vancouver, a Port Alberni port could shave off two days of travel for Asia-bound goods, a promising market for Island products. The port could also open the door to new SM such as products made from readily available wood fibre.

“There are things that can be done here that can’t be done in other places,” Hanson says. Crosslaminated timber and specialty charcoal made from slash burn leftovers are two of many examples.

While it’s his job to promote the Island, Hanson says that individuals will push SM forward. “There are challenges in the way, but those limitations haven’t stopped entrepreneurs. We’re on the cusp of realizing that we have significant untapped potential. We have to keep telling the story, the story that there’s opportunity on Vancouver Island.

We need to debunk the myth that an island location is a liability.” ■

easily be made offshore are riskier propositions, she adds.

As well, inputs (ingredients for the finished product) have to be accessed easily. Building high-end, Asia-bound homes is simple, due to the Island’s log-easy forests. To manufacture an airplane, meanwhile, many components have to be imported, which means high demand for the product must exist, Mowbray explains. “Specialty manufacturing on the Island is relatively small compared to forestry manufacturing.”

Then it becomes a question of having a skilled workforce that can afford to live on the Island. While wages are lower in Nanaimo and Comox, housing prices are also

lower than in Greater Victoria. One Island company splits its operations between provinces to create efficiencies. Design, administration and marketing of its solar energy products are carried out in Victoria, while manufacturing is done in centrally located, lower-taxed Saskatchewan, Mowbray says.

As for the TPP’s effects, Mowbray says export opportunities will exist for the Island, but there will also be “losers.” And if a manufacturer is riding the low-exchange-rate wave, it’s not sustainable. While the low dollar is a boost for specialty manufacturing, companies should not build their business plans on a volatile component.

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educational section 32 how to make your degree work for you 36 micro-learning 37 employee training

5

Tips to Maximize Your Degree

➊

From 2008 to 2013,

800,000

how to make your degree work for you

net new jobs for university graduates were created in Canada’s economy.

— StatsCan

So you put in the long hours of study, sweated through years of exams, spent sleepless nights worrying about your GPA — and you did it! You graduated with that sought-after degree. Now how do you get the most mileage out of your degree in the career world?

T

o get the most benefits from that hard-won degree, first you need to be proud it it. Don’t buy into the idea that your degree doesn’t have value. A recent report by B.C.’s Research Universities, called Putting Degrees to Work, looked at the class of 2008 graduates, who finished their education at the start of the major economic downturn. The report asked how those graduates were doing five years later, in 2013. The answer?

Surprisingly good. The report’s key findings showed that these graduates:

 had a 4.7 per cent unemployment rate (compared to 7.3 per cent for those without a university degree), 32 Douglas

more than two and a half times better than young British Columbians who did not go to university;  were making an average of $60,000 per year;  were putting their degrees to work, with 96 per cent working in jobs that require a post-secondary degree.

Get Employers Onside

Don’t expect employers to understand the nuances of your degree and what kind of value it brings to their organization. It’s up to you to educate them

If you have an outstanding Grade Point Average (GPA) and graduate with honours, make that part of your hiring story in the same way an awardwinner or sports medalist would highlight his or her achievements.

➋

Showcase your internships, co-op work experience and volunteer work.

➌

Along with your resumé, create a website that highlights your achievements and the value of your skills to employers — and tells your story. Make it clean, professional and impeccably written.

➍

Ensure you are telling the same story throughout your resumé, website and social media channels.

➎

Focus on building your network; use your alumni connections.

about what your brand of education can do for them. Just as you are looking for return on investment for your degree, employers are looking for return on investment from the people they hire.

To educate these employers, it’s imperative that you don’t just sell the features of your degree (what you learned); you must sell also its benefits (what it can do for your prospective employer). For instance, let’s say you are trying to market your bachelor’s degree in the humanities. To start, it’s important to recognize that despite all the debate surrounding humanities degrees versus, say, STEM degrees, your degree has great value.

A degree in the humanities is a degree in critical thinking, something highly valued by employers. You just have to show them how your degree applies.

formulas. You will also have a demonstrated ability to understand and make use of numerical and statistical data. Quite probably, you will also have gained an understanding of how to handle intellectually difficult challenges and how to present complex information.

Regardless of your degree, analyze each of the courses you took to find which skills you learned in your studies. Doing this will reveal the hidden talents you possess that might be valuable to a future employer. Then apply this

same process to any work experience, co-op terms or internships you took part in. Highlight the responsibilities you took and the skills you developed. Think about scenarios where you successfully applied your skills to real-world experiences.  Highlight your transferable skills Many of the skills you’ve developed will be transferable skills. These are skills that transfer well from one job or career to

 Unemployment rates for the class of 2008, two years and five years after graduating

2010

2013

6.9%

4.7%

Health

0.9%

0.5%

☎

Business Management

4.6%

2.7%

Here’s how to do it

✇

Engineering and Applied Sciences

8.0%

3.2%

 Unpack your skills One great way to make the most of your degree is to deconstruct the skills you’ve acquired during your studies.

For instance, if you have a Bachelor of Arts with Major in Economics, your skills are not limited to calculating complex economic

❤

Human and social services

5.9%

3.8%

✎

Education

2.8%

2.5%

✠

Arts and sciences

9.2%

6.3%

Average, All programs

✜

Source: the research universities’ Council of British Columbia — class of 2008 Graduate outcomes survey

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another. According to research conducted

by Workopolis in 2015, there are over 3,000 different skills requested in the approximately 60,000 job postings on Workopolis at any given time.

“Three-quarters of Canada’s best jobs – according to Canadian Business, anyway – are inaccessible to 77.3% of working-age Canadians, those without a degree.”

Each of these common skills that employers place high value upon is transferable:

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Hire innovative, job-ready co-op students and grads.

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 Sell your value Once you’ve identified and listed your transferable skills, the next step is to convince a future employer that these skills will make you a valuable employee.

Start by creating a competency-based resumé in which you detail your skills and how these skills would apply to a particular opportunity. A competency-based resumé, as opposed to a chronological resumé, details your skills and allows you to show how you have successfully applied those

skills. Even though you may not have experience doing a particular job, your examples will help employers draw a direct line between your skills and the skills they need.

Do showcase co-op experiences, internships, extracurricular projects and international studies that contribute to your eligibility.

Sending the Right Signal

Remember, a successful degree doesn’t mean that you’ve become an expert in any field yet. It’s a signal to employers that they can rely on you to bring a highly skilled approach to a job, along with a problemsolving mindset and the discipline to find the answers. ■

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High-school diploma

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ages 55-64 Post-baccalaureate, master, or doctorate degree

Source: the research universities’ Council of British Columbia — class of 2008 Graduate outcomes survey

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Make Time for Micro-Learning You don’t need a massive investment of time, money and energy to boost your skills or marketability. Thanks to community education and training, micro-learning is where it’s at.

W

School of Business

Gustavson

See things differently.

hen it comes to securing and evolving your career, the art of adaptation is imperative. Employers in almost every industry are revamping job descriptions, so employees need to be flexible lifelong learners to keep up with the rapidly evolving workplace. That means looking to learn emergent skills and stretch your mind beyond its comfort zone.

So how do you advance your education while still nurturing a full-time career or feeling your way through the frantic pace of self-employment? If you have the will to learn, a great way to do it is with microeducation, the kind offered through the

8

benefits of micro-education

➊ Deepen your

career and/or business knowledge.

➋ Keep up with

marketability.

➏ Pave the way

technology advances.

to new career opportunities.

➌ Clarify your

➐ Develop new

career goals and purpose.

➍ Increase

promotion opportunities or boost your earning potential.

36 Douglas

➎ Boost your career

skills in preparation for a career transition.

➑ Experience

personal fulfillment and enhance your confidence.

community education and training divisions of our Island’s colleges and universities. Upgrade your digital skills, learn to manage conflict in the workplace, study forensic accounting and fraud investigation, build your leadership capacity or prepare for a career in public relations — courses and certificate programs at Island education institutions run the gamut.

These programs can help launch you into a new career within 18 months or two years.

And don’t forget about micro-learning opportunities available through organizations like the Greater Victoria Chamber of Commerce, VIATeC, Innovation Island, and through business centres such as Victoria Executive Centre. As long as you are continuing to learn, you are positioning yourself to attract opportunity and grow your career. ■

Why Employee Training Is Worth the Investment Beyond the immediate benefits of having a welltrained staff, upgrading your employees’ skills makes business sense.

T

hroughout British Columbia, an aging workforce, the trend of early retirement and a declining birth rate are contributing to a growing decrease in the supply of workers. With this potential skilled-labour shortage on the horizon for the next decade, putting money into training can help your staff handle increased responsibility and also stay current in new technology.

And despite initial costs, staff training pays back your monetary investment. Here are just some of the benefits to taking on development initiatives:

 Training leads to increased productivity and increased customer satisfaction.

Employees become better equipped to handle customer inquiries, use computer systems and achieve stronger sales performances — giving your business a competitive edge.

 Coaching and guidance improve morale and increase loyalty, leading to a lower turnover rate, which results in lower recruitment costs. Training also promotes job satisfaction, as employees will develop more rounded skill sets that will help them contribute to the success of the company.

Skilled labour shortage? There are an anticipated

935,000

job openings expected in British Columbia by 2024.

— www.workbc.ca

 A workplace with welltrained staff means fewer accidents and fewer grievances.  Training gives more freedom to you, the employer, as competent employees will be better able to manage the daily business, allowing you to focus your attention on growing the company. ■

Douglas 37

What’s the best setup for your startup?

Home, co-work space or private office?

What to think about when planning your work space.

The SetUp

by Athena McKenzie

CO-WORKing SPACE

HOME

Ideal For

Independent workers who require a minimal amount of group interaction.

Individuals who thrive in an interactive environment; small businesses looking for the amenities of a traditional office space without the lease and other costs.

Perks

Doing laundry between budget analyses.

And did we mention the short commute?

Events, including expert speakers, courses, socials and investor meet-ups.

Risks

Your longest conversation during your work day is with your house plants. People who work at home cite isolation and loneliness as some of the biggest drawbacks. It’s also easy for lines to get blurred between your home life and work life.

As with any group of personalities, there is always the possibility you won’t get along with everybody. Alternatively, you can get along too well with everybody and spend too much of the day socializing.

Costs/ Considerations

Lowest costs. Ideally you have a separate space in your home designated as your work area.

You should be able to deduct a portion of your home office expenses when you file your taxes.

Relatively low overhead. Most co-working spaces offer different levels of monthly membership, depending on your needs. Along with desk space, these memberships usually include a help desk, as well as boardroom reservations and access to other amenities (like bike storage and showers).

Work Wardrobe

Yes, you can work in your pajamas, but studies show that getting “dressed” for work increases productivity.

It’s pretty relaxed in the co-working space.

While plaid seems to be the equivalent of basic black in the tech world, don’t be shy about letting your sartorial side shine.

Lunch Hour

You’re not at risk of forgetting your bagged lunch, but that break to watch an episode of Making a Murderer could turn into a 10-hour television binge.

Productivity is dependent on you, and if you aren’t self-motivated there isn’t anyone else to boost your morale.

Biggest Annoyance

Leaving your space. Making the transition from being at home to being out in the world can be discombobulating — and this gets harder the longer you work from home. Be proactive about planning regular meetings in the “outside world.”

Added value

The potential for increased productivity during your work hours (less distractions) and more time with your family during off-work hours.

38 Douglas

Taylor Swift may have her squad, but at a co-working space you’ll always have a lunch crew, whether you’re bonding over leftovers or heading to that hot new food truck.

The guy developing that dating app who won’t stop trying to set you up with his brother.

You’re immersed in a creative environment and you’re constantly growing your network. Not only are you around other inspiring entrepreneurs, but you could be sitting alongside your next investor, a future partner or potential advisors.

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THE FULL OFFICE

Al Hasham, President of Maximum Express Businesses that rely on clientemployee interaction and teamwork.

For the most part, you have full control over the space. Feel your logo would make an incredible chandelier in the waiting room? Go for it.

High overhead. There can be many distractions from actual work (these can be meetings, employee interaction, breaks, etc.).

Highest costs. According to the Colliers International office in Victoria, the average rental rate for a Class A office in the downtown is $27/sq. ft. Added costs include equipment, furniture, landlines, utility bills and the Internet.

To avoid mutiny, don’t forget the coffee machine.

Depending on the industry, suits may be required, but aim for business casual (a blazer) when clients are involved.

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Douglas 39

INTEL

[business intelligence ]

40 Entrepreneur Empowering Entrepreneurs from the Get-Go

42 Money The Perils of Becoming a Robo-Investor

43 Human resources The Telltale Signs of Professional Burnout

44 Sales and marketing Warming Up the Cold Call

entrepreneur by peter Elkins

Empowering Entrepreneurs from the Get-Go The spark of enterprise exists for most entrepreneurs long before they launch their first businesses. So why aren’t we heavily leveraging the education system to better grow entrepreneurs?

D

uring the past couple of years, I’ve been part of an ongoing conversation with academics and serial entrepreneurs about how to help students in entrepreneurial programs move from the abstract to the actual. One question I’ve asked is: why isn’t there a bachelor-degree program for post-secondary students who want to build businesses?

Yes, they do theory and case studies, but my argument is: why not get these students out building their own businesses as part of the degree-granting process?

There are good reasons to develop this kind of post-secondary program. First, it encourages entrepreneurship and builds value in our community. Second, there’s no better time to take on entrepreneurial risk than when you’re young, relatively unencumbered by debt and without need to support a family. Third, being part of a business-building program through a university mitigates risk for both the families and the students. Students find out early if being 40 Douglas

Jeffrey bosdet/Douglas Magazine

Jeff Hopkins, founder of the Pacific School of Innovation and Inquiry, in the school’s collaborative work and common area.

an entrepreneur is for them. If the answer is yes, it may lead to entrepreneurial success. If the answer is no, they still walk away with business acumen, a university experience, time to pursue other paths and a B.Com to fall back on.

Seeing Possibility at PSII As I was pondering how to boost entrepreneurship in education, I was introduced at a local tech event to Jeff Hopkins, founder of the Pacific School of Innovation and Inquiry (PSII, pronounced “sigh”), and to Jake West, a teacher at PSII. If you haven’t heard of PSII yet, let me start by dispelling the myth: it’s not an alternative school.

PSII is Victoria’s newest high school, offering personalized education through a formal process.

Learners develop their own pathways of inquiry that act as the umbrella for projects and other learning activities. And yes, PSII’s interdisciplinary curriculum leads toward provincial requirements for high-school graduation. Simply put, PSII is a bespoke high school.

I asked Jeff and Jake what makes PSII different from other schools. It wasn’t long before I started connecting the dots between what PSII was doing with high-school students and what I was pondering as a possible approach for universities to consider. At PSII, students are encouraged to develop real projects, based on their own inquiries.

They are further encouraged to access the world outside the classroom via mentorship, modelling and project development, including ways to contribute positively to society.

PSII students work with entrepreneur volunteers such as Justin Love and Manjinder Benning (Manj), co-founders of Limbic Media, a company that specializes in transforming public spaces through high-tech reactive art and light installations. On a recent tour of PSII, I observed one of the lighting/music design student projects which Manj was involved in.

To my surprise, it looked more like a software startup or innovation centre than a high-school project.

Manj was consulting with a group of very engaged, intelligent students who were designing architecture and writing code for a new software product that will have real-world applications. My take-away from observing this group was that PSII gives its students the freedom to be their best and the skills and encouragement they need to move on to college or university.

Brianna, a student I met at PSII, was working on a gift-store concept that she was committed to seeing move from concept to reality. I couldn’t help but support her project.

After introducing her to local building owners Bob and Brenda, my business partner and I enlisted the support of entrepreneurial colleagues to help mentor her and accelerate her vision. Everything required to support Brenda was present. All she and her school needed to do was to connect the dots between students, building owners, entrepreneurs and makers. This collaboration resulted in a successful community pop-up store called YYJingle during Christmas 2015.

Innovation for the new economy As we move toward the new economy, this is the kind of education and community that we and our future generations need to be successful as entrepreneurs. So in addition to making university culture more entrepreneurial, let’s also back that up in grades 9 to 12 as PSII is doing. Using education as a vehicle for entrepreneurship, from high school through post secondary, seems to me to be a recipe for success in growing our local living economy from the ground up and creating healthier and happier communities. ■ Peter Elkins is co-founder of the Capital Investment Network, Kick Victoria and Business As Unusual.

He is passionate about driving Vancouver Island’s entrepreneurial economy.

Douglas 41

Money by steve bokor

The Pitfalls of Robo-Investing Automated investment services, often called robo-advisors, may spit out impressive algorithms, but can they totally replace human intuition and the nuances of sound investing?

Probably not.

Robo Advisor

vs

financial Advisor

vs An online service provider that provides automated investment management with limited human contact.

Located on Main Street in your city. Provides personal advice and services with emphasis Definition on human contact.

I

mutual funds and GICs. For the t’s 2016 and the winds of change are do-it-yourselfers, the banks offer blowing in the investment industry. Despite Personal advice can You complete a be tailored to your questionnaire by online discount trading. the fact that we live in a tech age, Charles situation. Unlimited phone, email or Skype Unfortunately, rising Dickens’ A Tale of Two Cities seems apt: human contact that can and are assigned a administrative and regulatory “It is the best of times, it is the worst of model portfolio.

Financial be face-to-face, phone, costs are causing some financial times, it is the age of wisdom, it is the age of email or Skype.

Limited human contact. advice firms to attach minimum fees foolishness ...”

I’ve spent more than 30 years in the and commissions to investment investment industry and based on that accounts, effectively stranding Can provide planning, May be limited investment and to investment perspective, I believe Dickens’ sentiment best medium- and small-sized insurance advice and services. Limited to describes the situation many investors face investors. These investors are services. Can also passive investment today. There are too many choices, too many either forced to pay unpalatable provide passive or processes and passive opinions, too many opportunities and too many fees or seek alternate investment active management, management to services or a blend of the two. minimize expenses. potential pitfalls. advice. Robo-advisors are Last spring, a friend of mine, who is nearing positioning themselves retirement age, said jokingly, “Steve, have you to capture some of these Increased human Automation and low heard about these robo-advisors? For ten bucks disenfranchised investors. contact and human contact enable a month they will manage my investments, and personalized services robos to provide lowHow Do Robo-advisors I can do it all online.” are more expensive. cost advisory fees.

Work?

Expenses This revelation caused a flashback to the As I understand it, the robofirst time I heard a client tell me about online advisor process starts with trading for $9.95 per trade. “Well, it sounds like filling out an online account a steal of a deal,” I quipped, “but remember, per month, plus some low-rate administrative questionnaire. This is similar in nature to you usually end up getting what you pay for.” costs. Clearly, this will appeal to small- to opening an online account at a discount firm.

At the same time, my friend’s comment medium-sized investors who are weary/wary of The next step in the process is to answer a piqued my curiosity. What are robo-advisors, rising fees and expenses. series of questions designed to measure the and how do they operate? Who is their target In my opinion, however, there are potential investor’s investment return expectations market, and is their service suitable for the pitfalls: (income and capital gains), average investor?

Impersonal First, when robo-advisors risk tolerance, taxation issues, Simply put, a robogather information from clients through time horizons and liquidity advisor is a hybrid online questionnaires, they may not assess needs.

These questions financial institution that is all of the emotional issues that make each have been designed using one part discount broker are looking at the growing individual unique. Call me old-fashioned, but complex algorithms to capture and one part fee-based presence of robo-advisors looking a person in the face when gathering psychological preferences. fund manager. For the as a potential threat to their Unfortunately, I do not know new client information is critical in the right investor with the traditional customer base. investment-management process. Sometimes, if it is 20 questions or 120; right temperament, robofor instance, clients don’t want to answer regardless, once the questions advisors might become questions honestly. Perhaps their marital status have been answered, a portfolio of investments a moving force in Canada’s financial-service is an issue, or maybe one of their adult children is created for the client.

Some use Exchange arena. How big a force? Well, in fact, Canada’s has an addiction issue. Will a robo-client feel Traded Funds (ETFs), some use mutual funds six major banks are looking at the growing comfortable putting that information online? and some use both. presence of robo-advisors as a potential threat

Canada’s six major banks

to their traditional customer base.

The Rise of Robo-advisors Right now, 80 per cent of the financial assets managed in this country are controlled by Canada’s six banks. They offer three competing business lines. For investors with assets in excess of six figures, there is a financial advisor who will provide advice and a full range of financial products for either a fee or a commission. For medium-sized clients, the banks offer “personal banking and business advisors” who are usually restricted to selling 42 Douglas

From there, the robo-advisory firm rebalances the client’s portfolio according to pre-established parameters. This is designed to make investors feel comfortable about their investment portfolios through market cycles without having to pay the fees that the fullservice investment firms charge.

For example, an investor at a full-service investment firm with a $100,000 investment portfolio will likely be paying a minimum fee of $1,500 per year or commissions that average two per cent per transaction. That is a far cry from a robo-advisor that might be charging $10

1

2

Market stress Will the client of a robo-advisor panic when markets go through volatile periods and run to cash in at the wrong time? Financial advisors often act as counsellors to steady their clients’ emotional reactions during times of market stress. We want our clients sleeping at night. It is our job to worry.

3

changing market What is the track record of the algorithm program that is generating the asset allocation? The investor is putting faith in a computer program that is

trying to operate under constantly changing market conditions. In my opinion, we are in the midst of a global deflationary investment cycle, something that has not been seen in over 80 years. So how can a computer program create an adequate model?

4

UNKNOWN Attachments Lastly, is the robo-advisor truly independent, or has it been created to market specific lines of mutual funds or ETFs? In April 2014, Power Financial made a $30 million investment in a robo-advisory firm. Power Financial also has ownership interests in Investors Group, Mackenzie Investments, London Life, Canada Life and Great West Life. I wonder which products will end up in those client accounts.

THINK TWICE I think robo-advisors are here to stay in Canada. Yes, they may provide a leg up in service for the online do-it-yourselfer, and they may become a valid alternative for clients that are being dropped by full-service investment firms or for clients being transitioned to a call centre. However, I still believe that there are potential pitfalls when it comes to relying on a portfolio based on a computer-generated model. ■ Steve Bokor, CFA, is a licensed portfolio manager with PI Financial Corp, a member of CIPF.

Human resources by Ingrid Vaughan

Telltale Signs of Professional Burnout (and What to Do About Them) When business owners and professionals sacrifice their personal wellbeing for the sake of getting the job done, the results can be costly.

I

t’s 9:00 a.m., and John is reviewing his lengthy to-do list. For months he’s struggled with fatigue and lethargy, unable to maintain the mental focus and physical energy his small business requires. He is forgetful, misses deadlines, makes mistakes, is easily frazzled and less able to cope with the daily demands of his business. He pushes on in spite of the rising sense of panic he feels. He thinks if he can just get over the next little hump, things will get better.

In the last six months, Diane has had to cut her staff by 25 per cent while expecting the remaining team to keep up with a full workload. Everyone is stretched; her staff is struggling to keep up. To reduce the strain on them, she is coming in early and staying late to pick up the slack. She’s not sleeping because she worries about keeping it all afloat. She feels as if she’s drowning — ­ yet doesn’t believe she has any option but to carry on if she wants to maintain her business.

Both John and Diane are experiencing burnout

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symptoms. For them and thousands of other professionals, things will not get better without attention and action to address their burnout.

Jean-François Simard, research officer at the Professional Institute of the Public Service of Canada, says work-related stress is the factor mentioned most often when talking about burnout.

“Stress and mental-health problems now account for 40 per cent of long-termdisability claims, 35 million lost workdays a year and 40 per cent of turnover,” says Simard. Burnout is expected to continue to rise as businesses are forced to do more with less and the demands on the average worker and business owner increase.

Burnout has been defined as “physical or mental collapse caused by overwork or stress.” Once it occurs, it can be a long way back. Some people experience a complete

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inability to handle or cope with the day-toStress and mental day demands of work, or develop debilitating health problems illnesses. In most cases, it leaves the person now account for unable to continue to work. Most entrepreneurs 35 million lost tend to push themselves — often beyond healthy, workdays a year. reasonable limits — to meet the demands of their businesses, putting themselves at risk of professional burnout.

Recognize the Signs People don’t burn out overnight. They often have months, in some cases even years, of warning signs that have been ignored or pushed through.

A former director of human resources says of her burnout experience, “I believe my burnout was due in part to the unrealistic and unsustainable expectations I had set for myself. The way back to health required a recalibration of what was reasonable and taking easy baby steps in that direction.”

As a business owner or leader, the impact of hitting burnout can be significant for your business. Not recognizing or taking the signs seriously can lead to devastating consequences. Take a look at the chart to the right: If you notice several of these signs on a regular basis, do not ignore them. See your doctor, and talk to a close friend or colleague or professional counsellor. Acknowledge and act before the symptoms become prolonged or chronic and force you to step back from your business or work.

Establish a Strong Support Network It’s important to have people you can connect with regularly for support.

This may feel counterintuitive, as burnout causes you to feel less social and typically reduces your desire to be with people; however, it’s an essential part of avoiding burnout.

Meet with business colleagues on a regular basis for support. Engage with a counsellor or therapist. Spend time with good friends and family to reduce your stress. When you’re feeling vulnerable or overwhelmed, don’t go it alone. Tap into your network for support and perspective. maintain Balance and perspective Business owners often sacrifice themselves for the success of their businesses, but self-care is essential to enduring physical and emotional strength in the face of constantly changing, demanding times.

A balanced life minimizes stress and creates capacity for you to be more effective in your business. No matter how bad it feels, things could

be worse. Practise gratitude to keep your perspective. It doesn’t eliminate the challenges, but it helps you focus on what matters.

Evaluate what you are feeling against what is actually happening — things may not be as bad as they appear. Acknowledge the things that are within your control and change what you can. Find a trusted person to talk to. Other people can often see things more clearly.

To be effective in today’s demanding business climate, you need to make intentional decisions that protect your physical and emotional well-being. This will allow you to be your best self at work and avoid burning out, and help you sustain a long and meaningful business career. ■ Ingrid Vaughan of brioconsulting.ca specializes in training and coaching business owners and managers to become more effective in all aspects of managing their teams to increase employee engagement and business success.

Symptoms of burnout 

Inability to cope with stress • Negative attitude, unhappy at home and work • Low energy, exhaustion, trouble sleeping • Withdrawing from people, feeling overwhelmed • Decreased performance, low motivation • Increase in health problems

Eat a proper diet, exercise, get sufficient sleep • Do an activity you love Let go of what you can’t control and focus on what you can • See a doctor, counsellor, therapist or coach to find ways of working without burning out • Spend time with people who matter to you • Make time for fun!



how to maintain balance

Sales and Marketing

by Mike Wicks

Warming Up the Cold Call Mention cold calling and many entrepreneurs and salespeople will break out in a cold sweat. But does cold calling (often called outbound marketing) have to be scary? Much of the fear comes from a misunderstanding of the objective and expectations of that first potential customer contact. Here’s how to warm up those calls.

44 Douglas

I

never used to enjoy cold calling, even though I recognized it as a necessary strategy to increase business. That’s why, over the years, I’ve discovered ways to change cold calling to warm calling, which I feel a whole lot better about.

Many years ago, when I was a sales rep for a book publishing company, I wondered how I could increase business. After all, there were only so many bookshops, library suppliers and wholesalers and I was already calling on them all. Then one day I was passing a cash-and-carry wholesaler, and popped in to see if they carried books. On discovering they didn’t, I promptly asked to speak to the manager. To cut a long story short, they bought several thousand books, and for a while, I was their only book supplier. This particular cold call landed me one of the biggest new clients my territory had ever seen.

That’s why I have no doubt that cold calling is still a valid sales technique. The two main challenges are: 1) people don’t like to do it and 2)

the success ratio tends to be low. The question is, why?

Why Do People Fear Cold Calling?

Fear of rejection is a big reason people don’t like cold calling. Another reason is that people are concerned they will come across as pushy. After all, when we think of cold calling, we often think of annoying and sometimes sleazy telesales people calling us at dinnertime. And we don’t want that to be us, do we?

Rejection: It’s All in the Numbers Salespeople are generally optimists, but there is a difference between being optimistic and being delusional when it comes to recognizing how difficult it is to get someone to buy what you are selling. According to the research firm TOPO, only 24 per cent of sales emails are opened; it takes 18 dials to connect to a single buyer; and call-back rates are lower than one per cent.

Rejection is an integral part of selling. Even the best salesperson can’t expect to call 50 prospects and sell to every one. The majority of calls, in one way or another, will end in rejection. It’s a numbers game.

What’s the Biggest Cold Calling Myth?

The biggest myth is that your objective is to get a sale. Now, that sale may be your long-term goal, but it shouldn’t be your first objective. If you look at the objective of a cold call as the start of building a relationship with a prospect rather than making a sale, you will feel a lot less pressure.

Cold Calling and Gatekeepers When making a cold call, it’s not always clear if the person you’re talking to is actually the buyer. In fact, he or she may be a gatekeeper, someone who guards the person you need to connect with. Your immediate objective is to discover who has the power to buy. Second, you need to sell yourself to the gatekeeper so that he or she becomes your supporter and will tell you who’s the right person to talk to and how to reach them. Rather than try to get around gatekeepers, recruit them. Never underestimate the power of these people as they often have the clout to recommend a buyer meet with you.

The Power of Referrals

A personal connection increases your chance of getting a personal appointment with a buyer by 4.2 times.

Sales Benchmark Index (SBI)

73%

of executives are more willing to meet, and buy, from salespeople who are referred by someone they know.

International Data Corporation

84%

of B2B decisionmakers start the buying process with a referral.

SBI

When is a Cold Call Not a Cold Call?

When you’ve warmed it up! The biggest challenge with a cold call is simply that you are approaching a stranger and expecting them, at some point, to give you money.

Remember, cold calling doesn’t have to be random calling. When you are building your prospect list, don’t

Referrals have a

30%

better conversion rate.

R&G Technologies

forget to ask everyone you know for referrals, because there’s nothing more powerful than being able to say, “Jen suggested I call you.” And don’t forget the six degrees of separation. LinkedIn is an amazing resource for finding someone in your wider network who knows the person you want to cold call. Ask if they would be willing to make a referral.

If you can’t find a connection, research your prospect online to learn details that you can use to relate to them. It may be as simple as, “I hear that you’re on the board of the art gallery,” or “Is that a British accent? Whereabouts are you from?” The key is to break down the barrier of unfamiliarity as quickly as you can.

How important are first impressions?

In spite of what I said earlier about telesales people being annoying, you occasionally come across one that you actually warm to. Typically, these callers aren’t rigidly following a script, or maybe they really believe in the product or service they are selling. For whatever reason, you feel they may have your best interests at heart. The result is that you listen to them. In no other form of selling is a first impression as important as in cold calling by telephone — and nowhere is it tougher.

Whether you are cold calling by telephone or in person, remember it is far harder to close down someone who is smiling (yes, smiles do transmit across phone lines), pleasant and showing interest in you than someone who obviously just wants to get straight to a sales pitch. Your personality can be an asset or a liability, it’s up to you, and you have approximately 10 seconds to warm up that cold call by making a positive first impression. ■ Mike Wicks is an award-winning author, blogger ghostwriter and publisher. He is president of Blue Beetle Creative Media.

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Larry Christiansen, lead roaster at Fresh Cup Saanichton, considers the company’s infused beans the next step in the journey of artisan coffee innovation. The infused beans are aged and conditioned in bourbon barrels from Washington.

Last Page

by Athena Mckenzie

Forget everything you think you know about flavoured coffee.

Fresh Cup Roastery Café’s new infused beans promise a unique taste experience for coffee lovers.

Inspired by recent trends in craft beers, boutique spirits and culinary fusions, the roaster is infusing green coffee beans with carefully chosen ingredients such as bourbon, amber rum and honey-mead wine. The beans are then aged and conditioned in bourbon casks before being roasted in small batches.

“As coffee innovators, we’re not only looking at the technology side, we’re looking at the consumer side. How can we make coffee interesting for people?” says Fresh Cup president Jim Townley.

“I don’t want to call them flavours. Flavouring coffee is what happened back in the ’80s when they chemically added hazelnut or whatever after the coffee was roasted. We’re infusing with real ingredients, prior to roasting, and that’s a key part of it. And because our Roastaire roasting process is a little more gentle, we don’t roast off all the elements that are found in the infusion.”

The first cask-conditioned series, available just before Christmas, was sold in reusable mini-growler bottles, as Fresh Cup was looking for a reusable method of delivery so customers could bring bottles back and get deposit refunds.

“It’s common to see vodka or beer infused with coffee.

However, infusing coffee beans with spirits, beer or wine is something completely new,” says Townley.

“Just like the craft beer industry comes up with seasonal beers,” he adds, “we’ll be putting out three seasonal infusions each season. The next series, out in March, will be Apple Whiskey, Bourbon and a Cabernet Sauvignon.”

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Jeffrey bosdet/Douglas Magazine

Coffee Couture

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