Douglas magazine June/July 2015

22

Built to Last local construction firms take on the world

52

SURVIVAL OF THE ORCA why the ISLAND ECONOMY DEPENDS ON IT

59

be a DIGITAL LEADER DO YOU HAVE WHAT IT TAKES?

Jun/Jul 2015

Beyond business as usual

Special

10 to

Watch Issue

10 to Watch winners say no to the status quo

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Contents

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Jun/Jul 2015

Features

departments

22 Built to Last

6 From the Editor

Can Island construction firms compete with bigger, off-Island players? Douglas asks the industry leaders. By keith norbury

29 10 to Watch Winners

10 In the Know

INTEL [Business Intelligence]

John Wilson’s home run, Douglas Street revamp, film industry in a starring role

58 Entrepreneurship

52 Why the Island

16 People in Business

59 Digital Life

The who, what and where of the business scene

How to become a digital leader By David Alexander

The environmental case for saving the orca is clear, but there’s also a strong business case for taking urgent action.

18 Take Three Get your workspace summer-ready

61 MONEY

Economy Needs the Orca by judith lavoiE

Douglas celebrates the Island’s top new companies with our 6th Annual 10 to Watch Awards.

20 THE BIG IDEA What’s love got to do with it? By kerry slavens

66 Last Page

The bottom line needs your attention by Peter Elkins

The rewards of RESPs

BY Steve Bokor

64 sales & Marketing What is your reputation worth? by mike wicks

Viberg’s iconic footprint by patrick grace

By Kerry Slavens and Athena Mckenzie

Jeffrey Bosdet/Douglas Magazine

Katy Fairley, Kinetic Construction’s business development manager, was named Outstanding Woman in Construction at the 2014 Vancouver Regional Construction Awards. Fairley is the creator of the Women in Construction networking and Pro-D group.

4 Douglas

2015 SPONSOR M A G A Z I N E’S

TO WATCH

Over 175 dedicated architecture, engineering, and environmental science professionals on Vancouver Island

Integrated design, here in your community Historic Kinsol Trestle Rehabilitation Vancouver Island, British Columbia

Design with community in mind stantec.com

Jeffrey Bosdet/Douglas Magazine

From the Editor

Seven Entrepreneurship Lessons from our 10 to Watch Winners

When our Douglas editorial team interviewed our 10 to Watch winners for this issue, we were fascinated to see some of the themes or trends emerging amongst these exciting new entrepreneurs. Many of these trends weren’t even on the horizon a year or two ago, which goes to show the velocity at which business moves. Here are some of the lessons we learned from the 10 to Watch winners selected by our independent judges as the most promising new businesses on Vancouver Island.

1. They know long-term planning isn’t possible — or even desirable. Business moves so fast these days you can blink and miss a billion ideas, so engaging in the onerous process of creating five- and 10-year plans is a waste of time. Instead, most of them define their vision then sketch out short-term goals (there has to be some planning, after all). Then they expect the unexpected and adjust accordingly.

2. They show who they really are. Today, transparency is everything and consumers expect it. Smart entrepreneurs know the consumer has a nose for half-truths, so they commit to being clear and authentic in everything from their ingredients to their payment structures.

3. They are disruptive but not destructive. Business today isn’t so much about destroying competitors with old-fashioned tactics — it’s about creating something better.

By putting the focus on the positive instead of playing war games, new entrepreneurs gain speed and good will, and are able to keep their minds focused on innovation.

4. They care about the environment. These new entrepreneurs aren’t questioning the need to be eco-responsible. They’re just doing it because it’s the right thing to do and they know their customers expect it.

5. They don’t waste time. They know that if they try to be absolutely perfect, they’ll miss the moment. That’s why many of them have wisely engaged their audiences in the testing and building of their products and services.

6. They are collaborative. Whether they are engaging in ideafests and meetups, or talking to businesses across the hall or the street, new entrepreneurs are keen to be part of a community that is more than the sum of its parts. They want to share ideas to build the entrepreneurial ecosystem.

7. They reach deeper. New entrepreneurs understand that we have moved into what the online magazine Creative Bloq calls the ‘human era’ of brands. “They listen to the world around them and are open to their customers’ input. Their delivery is more intimate and personalized, and also more inclusive. They realize that customers seek not just to buy something, but to buy into something.”

Since it launched 11 years ago, Douglas magazine has been a major supporter of growing the Island entrepreneurial culture by telling the stories of entrepreneurs and showcasing their innovation. This year’s 10 to Watch winners (see page 29) are bringing new vibrancy to our business scene, something we not only welcome but celebrate.

— Kerry Slavens kslavens@pageonepublishing.ca

6 Douglas

Lux

Douglas 7

50

%

PURELY OPTOMETRY OAK BAY

OFF

FRAMES

www.douglasmagazine.com Volume 9 Number 4

Publishers Lise Gyorkos, Georgina Camilleri

Editor-in-chief Kerry Slavens

Creative & Technical Manager Jeffrey Bosdet

welcomes

DR. JOHN POON

Production Manager Jennifer Kühtz

Editorial Designer Jo-Ann Loro

FOR EYE EXAMS

Editorial Assistant Patrick Grace

contributing Designer Janice Hildybrant

OAK BAY 1964 Fort Street 250.590.7499

Associate Editor Athena McKenzie

Contributing Writers David Alexander, Steve Bokor, Peter Elkins, Judith Lavoie, Keith Norbury, Mike Wicks

Contributing Photographers Jeffrey Bosdet, Simon DesRochers, Gregg Eligh, Joshua Lawrence, Jo-Ann Loro

OPTICAL EYECARE DOWNTOWN VICTORIA 1320 Douglas Street | 250.380.6919

DUNCAN 250.597.1011

Advertising Representatives Vicki Clark, Cynthia Hanischuk, Charlsey Sperl

www.DiamondEyecare.ca NANAIMO 250.390.3333

Contributing Agencies Thinkstock p. 12, 14, 18, 19, 52, 62, 63

Administrative Assistant Bev Madden-Knight

general inquiries info@douglasmagazine.com

SEND PRESS RELEASES TO editor@douglasmagazine.com

Letters to the editor letters@douglasmagazine.com

To subscribe to Douglas subscriptions@ douglasmagazine.com

Advertising Inquiries sales@douglasmagazine.com Online www.douglasmagazine.com Facebook DouglasMagazineVictoria Twitter twitter.com/Douglasmagazine

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.

Canadian Publications Mail Product Sales Agreement #41295544 Undeliverable mail should be directed to Page One Publishing Inc. 580 Ardersier Road, Victoria, BC V8Z 1C7

Douglas magazine is a registered trademark of Page One Publishing Inc.

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Douglas is a premium magazine dedicated to innovation, leadership and business lifestyle. Established in 2006, Douglas is the first choice for business leaders and achievers.

Align your business with Douglas. For more information or to request an advertising rate card, please call us at 250.595.7243 or email us at sales@douglasmagazine.com.

8 Douglas

ADVERTORIAL

RECYCLING

END-OF-LIFE ELECTRONICS

By Craig Wisehart Executive Director, Electronic Products Recycling Association, Western Canada

MADE EASY

LAST YEAR ALONE, EPRA BC COLLECTED OVER 23,234 TONNES OF UNWANTED ELECTRONICS, WHICH AVERAGES TO 5 KILOGRAMS PER PERSON IN BC.

EPRA accepts virtually all of your unwanted electronics.

P

eople in British Columbia are proud to live in a province that is highly environmentally conscious—Recycling and reducing waste is an everyday part of life. For the most part, BC residents are accustomed to recycling paper, cans, bottles and even batteries, but what about recycling end-of-life electronics?

Research by Insights West shows that in British Columbia, 80% of residents claim they know how to dispose of electronics in an environmentally friendly way, and yet over 83% of households have at least one unwanted electronic product sitting around.

The Electronic Products Recycling Association, also known as EPRA, is the national not-forprofit organization dedicated to the responsible recycling of the end-oflife electronics that the majority of people have at home. With over 170 Return-It™ Electronics collection sites in BC, people won’t have to go far to dispose of their obsolete electronics. In fact, over 98% of BC residents live within 30 minutes of a depot in urban areas and within 45 minutes in rural areas.

After the unwanted electronics are dropped off at collection sites, they are taken to approved recycling facilities across North America. Once there, they are then harvested for the glass, plastic and precious metals that they contain. The recovered raw materials are put back into the manufacturing supply chain and then used to make new products, giving them a second life and keeping them out of BC landfills.

According to Insights West, 98% of people in British Columbia agree that the disposal of electronics through recognized recycling programs is important—taking your electronics to a Return-It Electronics collection site ensures responsible recycling. EPRA recycles in a manner that protects the environment as well as worker health and safety and only works with recyclers who have been audited and approved under the national Recycler Qualification Program (RQP). This means that all recyclers working on behalf of EPRA are prohibited from exporting electronics or substances of concern to non-OECD (Organization for Economic Cooperation and Development) nations, and EPRA neither permits nor supports the use of prison labour. In addition, EPRA

requires enhanced worker health and safety provisions and downstream accountability.

EPRA will recycle virtually all endof-life electronics including computers, televisions, gaming devices, electronic toys, fax machines, scanners and printers. Since its implementation, over 131,000 metric tonnes of these end-oflife electronics have been collected in British Columbia. (For a full list of accepted products visit: return-it.ca/ electronics/products) EPRA wants to ensure that electronics are recycled in a safe, secure, and environmentally friendly way. By responsibly recycling electronics today, BC residents are committing to a cleaner future tomorrow.

Take the opportunity to drop off old and unwanted electronics at the nearest Return-It collection site and help extend nature’s warranty.

TO FIND THE COLLECTION SITE CLOSEST TO YOU VISIT: RETURN-IT.CA/ELECTRONICS/LOCATIONS OR CALL 1-800-330-9767.

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Innovation | Design | Business | Style | People 

[In the Know ]

We’re not a stagnant company, we’re a progressive company.

I’m looking for people who want to build something and aren’t afraid to work and be independent and manage themselves.

When you find those people, your business is a lot easier to look after in the long run.

–John Wilson, CEO and owner of Wilson’s Transportation

Sports metaphors are popular in the business world for good reason. To be successful in either requires a skilled team that works well together. It seems especially fitting when John Wilson, CEO and owner of Wilson's Transportation, credits his partners and employees with his recent run of wins, given that Wilson is one of four new local owners of the Victoria HarbourCats baseball team.

“I don’t do any of this by myself,” Wilson says. “In most of my ventures I have really good partners and we have people working hard on the front lines of all the businesses.”

10 Douglas

Other recent announcements include Wilson’s appointment to Victoria’s Economic Development and Downtown Prosperity Task Force and Wilson’s Transportation’s two-year agreement with Greater Victoria Harbour Authority to operate the Ogden Point cruise shuttle service.

Looking to the future, Wilson is working with the City on a transportation precinct to replace the bus depot downtown. And that — to use another baseball analogy — will have him swinging for the fences, looking for another home run.

Jeffrey Bosdet/Douglas Magazine

Fielding a Winning Team

Is Douglas Street Due for a Redo?

WHAT DOES

A new vision for Douglas Street could see one of Victoria’s most important and critiqued corridors get a revamp. The vision, championed by the Downtown Victoria Business Association, proposes “a more cohesive, tight-knit, grand avenue and to restore its prominence as the main street of our downtown.”

YOUR

Chris Foyd/Cascadia Architects

BUSINESS ENVIRONMENT

D

‘‘

ouglas Street doesn’t give any sense of Victoria’s identity or create a sense of arrival,” says Gregory Damant of Cascadia Architects. His firm developed the Arriving at Douglas report for the DVBA in consultation with City of Victoria staff, B.C. Transit and DVBA members.

“We ride on the strength of the Inner Harbour. That’s certainly a point of arrival, but a lot of people arrive in the city via Douglas Street as well.”

The report, which focuses on improvements to the 2km

stretch of Douglas from Hillside to Belleville, envisions a corridor where public transit, cyclists and pedestrians will eventually take precedence over automobiles.

Vehicle traffic would potentially be restricted to one lane in either direction.

“We’re not reducing traffic but shifting it more to bicycle and transit over time,” says Damant.

If accepted by City Council, the vision will roll out over 20 years. “This kind of time frame,” says Damant, “is long enough that it’s possible to imagine significant change but short enough to effect change you need to start on

“SAY” ABOUT

YOU?

now, and it ties in with the City’s Official Community Plan.”

There is, adds Damant, potentially $180,000 for a pilot: $60,000 from the DVBA, $60,000 from the City and $60,000 from Downtown Victoria 20/20 Society.

The report has met with both excitement and caution from stakeholders.

 Douglas Street Feedback Douglas asked business owners and other stakeholders for their opinions on the potential Douglas Street changes. Read their views at douglasmagazine.com

Set in phases over a 20-year period, the Arriving at Douglas Street vision includes suggestions to: 1. Improve lighting in key areas for pedestrian safety.

2. Add strategic mid-block crossings.

Including original artwork is important; it’s worth more than “a thousand words” to make that key first impression.

The Avenue Gallery offers a complete art consultation service that includes office space assessment, initial viewing of proposed artwork, framing advice and installation.

Chris Foyd/Cascadia Architects

3. Install a centre cycle track and priority bus lane 4. Create wider sidewalks and boulevards.

5. Install a consistent lighting canopy

over the street.

6. “Urbanize” Centennial Square’s

green space by removing the lawn and adding patterned pavement.

Scramble intersections like this one in London (top), allow pedestrians to cross the street diagonally when traffic halts.

Canopy lighting above the street creates a friendly, vibrant atmosphere, especially for nighttime shopping.

7. Use bollards and eco-mediums

to separate bike and bus lanes from vehicle traffic.

2184 Oak Bay Avenue Victoria, BC V8R 1G3

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Douglas 11

future

The future will be secure Vancouver Island’s Tax and Estate Planning Boutique

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Victoria Ranked in Global Investment

Top 10

Victoria has been recognized as one of the top 10 small cities in North and South America for Human Capital and Lifestyle and Investment

by London’s Financial Times in its 2015/16 fDi American Cities of the Future publication. fDi is considered a leading intelligence source on global investment activity.  7th Victoria’s ranking for Investment

Strategies, for the three-year, $1.6-million trade and investment program by the Greater Victoria Development Agency and its partners, resulting in over $10 million in new investment.  9th Victoria’s ranking in the Human Capital

and Lifestyle category, which recognizes the region as a positive work/life environment.

Top Priority

Business Growth for Canadian Small Business Owners A recent survey by Northstar Research Partners on behalf of American Express Small Business Services showed that expansion and business growth is the key focus for small business owners (SBOs) in 2015. Respondents came from a variety of industries, including health, social services, education, tech, sales and skilled trades.

38% Layli Antinuk, J.D. Lawyer

Dwyer Tax Law

Blair Dwyer, LL.B., TEP Lawyer

of SBOs say growth is their company’s single top priority

85%

of SBOs are confident about business prospects over the next six months

86%

of SBOs are willing to take risks for their business in the next six months

48%

of SBOs say they feel married to their business

12 Douglas

5-ton electric truck. $10 for full charge with a 200 km range

Geazone Eco-Courier Picks Up Speed From tricycles to electric trucks, A local company gets smart about the environment.

W

hen it comes to life in the fast lane, Victoria doesn’t rank top of the list. “Slow down! This ain’t the mainland” bumper stickers could be our slogan. But if there’s one thing that revs our engines, it’s the issue of environment — we’re always on the hunt for eco-friendly solutions.

One such environmentally savvy local is Andrew Mitchell, four-time Canadian National Downhill Mountain Bike champion and CEO of Geazone, a zero-emissions delivery service. Using human-powered tricycles, Nissan Leaf electric vehicles and two five-ton Smith electric trucks (the only ones on the Island, Mitchell says), Geazone has been providing small package and freight deliveries to Greater Victoria businesses since 2012.

“Our revenue has doubled every year since inception,” says Mitchell. The company’s deliveries now reach as far up-Island as

I’ll connect Monika with the staff at Orchestras Canada.

Tania Miller, Music Director, Victoria Symphony

This tricycle can carry up to 500 lbs

The warehouse stores suppliers’ products, drop shipping as required

Nanaimo, and a mainland warehouse is set to open on June 1.

In just three years, Geazone has eliminated 250,000 lbs. of carbon emissions. “That’s the weight of a Boeing 747 removed from the atmosphere,” adds Mitchell. Daily, Geazone’s electric vehicles reduce the equivalent of 100 lbs. of butter in carbon emissions.

Victoria’s a natural fit for the International Eco-Tourism Society. I’ll call them.

Deirdre Campbell, Owner, Tartan Group

Less than $2 a day to operate this electric car

I know the organizers of the Call to Action Conference.

I’ll email them.

Linley Faulkner, Community, Growth and Operations, sendwithus

Mitchell’s drive to eliminate greenhouse gases continues to pick up speed. Currently, Geazone has a patent for a bicycle-pallet jack or “Urban Delivery Vehicle” that Mitchell hopes will replace freight deliveries on busy downtown streets over the next few years. No doubt, Geazone’s road to success is paved with good — and green — intentions.

I brought the International Conference on Software Maintenance and Evolution here in 2014.

You can help us bring business to Victoria, too.

Let’s connect!

Hausi Muller, Professor, Associate Dean, Faculty of Engineering, UVic

bring it Let’s

#LetsBringIt

Monika Lebedynska, Senior Account Executive, VCC

Conferences drive the economy and we all benefit.

Contact me: MonikaL@VictoriaConference.com

Douglas 13

Shooting for a Record Year Victoria’s Film Industry is Making a Comeback Wondering about the NYC police cars and cabs around Victoria’s downtown this spring?

Are Canadian Businesses Techno-Slow?

87%

of the 700 Canadian companies surveyed in an April 2015 study

by Deloitte said they were partially or totally unprepared for coming technological changes.

Deloitte has predicted new technologies such as robotics, 3D printers and artificial intelligence are on the verge of changing the economy.

The vehicles were used in the filming of Air Bud Entertainment’s feature film Monkey Up!, just one of the 10 film productions completed in the area by the end of April. Other projects included Hallmark television movies Last Resort and Gourmet Detective 2, and feature films such as Lakeshore Entertainment’s The Boy and Wes Craven’s The Girl in the Photographs.

Given that 2006 — the best year on record with an approximate direct spend of $18 million — saw 12 visiting productions over the entire year, 2015 could set a new benchmark. According to Kathleen Gilbert, film

commissioner at the Vancouver Island South Film & Media Commission, the area’s exclusion from the Distant Tax Credit, introduced in 2008, caused the annual spend to drop to an average of $7 million.

Provincial tax incentives announced in February 2014 and the weaker Canadian dollar are responsible for the area’s recent surge in visiting productions.

“We were up by $3 million last year, bringing direct spending to around $10 million in 2014… and this year, we’re expecting it to be back up to around $18 million, as long as it continues on like this.”

Budget Breakdown While every film project comes with its own variables and requirements, here are some examples of how Gourmet Detective 2, a recent project filmed in Victoria, spent some of its budget locally. In addition to these costs, the production spent thousands of dollars in fuel, food, location fees and rental cars.

Crew

$750,000 in local wages

Hotels the equivalent of

1,575 nights

Props & Wardrobe

$100,000

spent locally on clothing and set decoration

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14 Douglas

AND MORE.

new incentive to think local first Thanks to Victoria’s new Think Local First Rewards program, consumers can now collect “merits” on their loyalty cards or apps by shopping at registered businesses. Merit points can then be exchanged for rewards.

To launch the TLF Rewards program, Think Local First, an organization of local business owners, partnered with Supportland, the loyalty program started in Portland by Katrina and Michael Scotto di Carlo. Victoria is the first Canadian city to implement the Supportland program, which has a waiting list of cities around the world looking to join.

Along with rewarding customers, the Supportland platform helps small business owners gather information about their customers and helps them see which customers they share with other businesses in the network.

According to Gayle Robinson, Think Local First Victoria president and owner of Robinson’s Outdoor Store, the program will offer independent businesses the same level of access to sophisticated data used by large big-box stores.

“I can find out from the people using the card whether they’re using it at Robinson’s and Monk Office Supply, or at Spinnaker’s and Capital Iron,” Robinson says. “I can understand how my customer shops and who I should be cross-marketing with.”

Loyalty cards are available at participating Think Local First members. thinklocalvictoria.com

“Supportland was very interested in staying in this region because the cultural community is high, and Victoria and Portland are very similar markets.”

AL’S BUSINESS TIP FOR SUCCESS “Make yourself go to networking events often. It will boost your confidence, help build relationships and stimulate fresh ideas for your business.”

› Katrina Scotto Di Carlo

Al Hasham, President of Maximum Express

Price Discount

is enough to make a consumer buy a product online instead of a store.

More than 1 in 10

consumers admit to using stores to test a product before buying it online, a trend called “showrooming.”

Source: Business development bank of Canada

COURIER, FREIGHT & LOGISTICS

maxcourier.com

|

info@maxcourier.com

|

250.721.3278 Douglas 15

BAYC_9040_Douglas.pdf

1

2015-05-01

2:43 PM

Innovation | Design | Business | Style | People

Honoured

Jeffrey Bosdet/Douglas Magazine

Bruce Williams is the United Way of Greater Victoria’s 2015 community campaign chair. As CTV Vancouver Island’s manager of community and client relations and host of Café Victoria on CFAX 1070, Williams’ dedication to the United Way began in Ontario over 20 years ago. “As a United Way honorary life member, Bruce has a strong connection to the organization, and his personal commitment is an inspiration to all of us,” says Patricia Jelinski, United Way CEO. Related to his United Way volunteer work, Williams has received the United Way of Canada Chair’s Award of Excellence and the 2012 Queen Elizabeth Diamond Jubilee Medal.

7 million

Tops in tourism

new

customers?

Yes it’s true.

Seven million people a year visit The Bay Centre.

That’s a lot of potential to convert into sales.

Rev. Ian Powell

has received the Life Member Award from Tourism Victoria.

Powell, the Inn at Laurel Point’s general manager, is chair of Go2HR, director of the BC Hotel Association and a tireless advocate for tourism.

So if you like that number, call this one for leasing opportunities: 250-952-5699

ON THE MOVE Darrell Bryan, CEO of Victoria Clipper for 29 years, has announced his retirement. Bryan has been a respected advocate for the local tourism industry. He remains a 25 per cent owner of the company. Clipper founder Merideth Tall will take over as CEO, assisted by COO David Gudgel.

Dave Duncan has joined the Vancouver Island Stantec offices as the new office leader, bringing to the firm 20 years of experience working at the Ministry of Transportation throughout B.C., most recently as the Highways Department Assistant Deputy.

Jenny Gethings has joined Seaspan Marine as VP, Business Development. Gethings has over 25 years in the marine industry,

most recently serving as director of global projects for Schenker Canada.

Jim Beatty has joined the Victoria office of Hill+Knowlton Strategies as an account director with the public affairs and integrated communications team.

Beatty was an anchor at CHEK News and was previously CTV Victoria’s bureau chief.

NOLA DUNN has been hired as marketing director for Ivanhoe Cambridge’s Island shopping centres: Victoria’s Mayfair and Nanaimo’s Woodgrove.

Benton Mischuk has joined Sheffman & Company as an associate lawyer, focusing on temporary and permanent residence and citizenship applications.

Keri Coles

Appointed Mandy Farmer, president and CEO of Accent Inns is Tourism Victoria’s 32nd Miracle Award honoree. The award recognizes her inspired leadership in creating Hotel Zed and her support to build regional capacity for mountain bike tourism.

16 Douglas

Dan Dagg is the new chair of the Greater Victoria Development Agency. Dagg is president and CEO of Hot House Marketing.

Lise Gyorkos of Page One Publishing, Paul Barron of Odlum Brown and Melody Hermann, HR consultant, are new appointees to the board of the Greater Victoria Housing Society, a non-profit that assists people by providing affordable rental housing.

Education

Sherri Bell

Désirée McGraw

has been appointed president of Camosun College. Bell has had a successful career as a senior leader, master teacher, university instructor and principal in the public education system, most recently as the Superintendent of Schools for the Greater Victoria School District.

She is experienced in change management and has a track record of stewarding student achievement in the Greater Victoria School District. Bell has also worked to ensure that Aboriginal students are supported, and that Aboriginal values are fostered within the education system.

is the new president of Pearson College. She is the first woman to hold this post in Pearson’s 40-year history. As one of Canada’s most respected advocates for youth engagement, international cooperation and sustainable development, McGraw has earned accolades for her leadership of the Jeanne Sauvé Foundation, as well as co-founder of Al Gore’s Climate Project in Canada. Since 2002, she has lectured at McGill University on International Development.

McGraw was recently named one of Canada’s Top 100 Most Powerful Women by the Financial Post.

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Mayor’s Task Force Appointed A Mayor’s Task Force on Economic Development and Prosperity was announced recently by Victoria City Council. The task force is made up of community leaders in a range of sectors and will consult with stakeholders to develop recommendations on how the City can best use its available resources and act as a partner to fill downtown retail and commercial vacancies, support start-ups and ‘scale ups,’ foster entrepreneurship, support job creation and more.

The task force, chaired by Mayor Lisa Helps, plans to deliver its first recommendations by the end of June 2015. the Task force includes: Margaret Lucas, Victoria City Councillor; Suzanne Bradbury, co-owner, Fort Properties; John Wilson, CEO, Wilson’s Transportation; Nicole Chaland, director, Simon Fraser University’s Community Economic Development Program; Dan Gunn, CEO, VIATeC; Scott Gurney, owner, 17 Black; Dallas Gislason, economic development officer, Greater Victoria Development Agency; Darlene Hollstein, GM, The Bay Centre; Robert Jawl, director, Jawl Properties; Tony Joe, realtor/past president, Victoria Real Estate Board; Ken Kelly, GM, Downtown Victoria Business Association; Peter Kuran, president and CEO, UVic Properties; Paul Nursey, president and CEO, Tourism Victoria; Liam Scott-Moncrieff, UVic graduate, Pacific School of Innovation and Inquiry; James Coccola, provincial government employee and community volunteer; Jill Doucette, owner, Synergy Enterprises.

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Douglas 17

69%

of office workers are dissatisfied with noise levels at their primary workspace.

Take three 

— Gensler Workplace Study 2013

Here Comes the Sun!

Don’t fight the allure of summer — work with it. To boost morale, celebrate your company culture and reward your employees, consider bringing a little of the season into the workplace.

The Sound of Focus Is working in an open-concept office or at the coffee shop affecting your productivity?

Drown out distracting noises with Noisli, a background noise generator that helps mix different sounds to create your perfect workplace soundscape. Noisli sounds include rain, wind, trains, thunderstorms and more. At the end of the day, you can also create a pleasant or meditative sound environment to help you wind down. noisli.com

Business Lingo H2H Instead of the old model of business to consumer (B2C) or business to business (B2B), brands are now talking about H2H — human to human.

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the big idea BY kerry slavens

What’s love got to do with it?

A BELIEF IN MENTORSHIP On each of his four visits to UVic, Kevin Roberts has presented to Gustavson School of Business students and mentors. Students and alumni will have the chance to hear Roberts when he presents a worldwide address from New York on World Gustavson Day, June 11.

Douglas talks to Kevin Roberts of Saatchi and Saatchi, one of the world’s most famous advertising agencies, about turning brands into lovemarks, radical optimism and entrepreneurship on the edge.

You said leading people today is achieved by inspiring, not by managing. How do we make that part of business culture?

The answer is what Zuckerburg [CEO of Facebook] said last week: “I will not hire a direct report who I would not work for.” So people need to ask, “Wow, does this person have the capability, the leadership skills, that I would work for them, not just today, but in five 20 Douglas

Martin Miranda

K

evin Roberts may be one of the last aficionados of the fax machine. The executive chairman of Saatchi and Saatchi, one of the world’s largest advertising agencies with a staff of more than 6,000, says he sends out about 300 faxes a day, which his secretaries scan and send to the right people. It’s not that he’s a Luddite: he has an iPad and a smartphone. But there’s something about writing by hand on a fax, he says, that’s definitive. And Roberts is nothing if not definitive, whether he’s talking about leadership, entrepreneurship or replacing brands with lovemarks, a concept he coined in his book LoveMarks: The Future Beyond Brands.

Douglas caught up with Roberts when he was in Victoria to receive an honorary professorship in Leadership and Innovation from the University of Victoria, the first-ever honorary professorship granted by UVic.

years, six years?” Does this person have innate greatness in them? … The Peter Principle was a big book when I was growing up. It basically said we promote people to their level of incompetence. We’ve got to stop that nonsense.

We’ve got to hire the people who we think have greatness inside them and we need to do that with everyone we hire, because you can’t pile up enough good people to make one great one.

You’ve spoken about the need for radical optimism. Why do entrepreneurs need it?

Colin Powell [former U.S. secretary of state] talked about it. He said perpetual optimism is a force multiplier and he’s dead right. I’m sick of cynics and contrarians, of politicians and negativity. How did that ever drive anything — this constant questioning? The abominable no-man. Crap! What the world needs more than anything else is growth … we’re going to have to create jobs and businesses and that’s going

to be done by entrepreneurs. Government’s not going to do it. Big corporations are not going to do it. They’re going to decline, decline, decline, downsize, downsize, downsize. So we’ve got to have entrepreneurs. And if you’re an entrepreneur you’re going to fail I don’t-knowhow-many times. So you better be optimistic …. Radical optimism is the only thing that will drive growth in a VUCA (volatile, uncertain, complex, ambiguous) world.

You dared a decade ago to write a radically optimistic book that introduced the word love into the discourse on brands. What’s love got to do with brands?

Lovemarks create loyalty for a reason. Actually, lovemarks create loyalty beyond reason. They do everything that brands do from a respect and quality point of view. But then they add three things: mystery, sensuality and intimacy — and they become irresistible and irreplaceable.

My iPhone for instance?

It’s a lovemark. Samsung could give you better value, better technology, better functionality, but you don’t care — you love it. I feel the same way about my iPad. You talk about failing fast, fixing fast. But some companies find failure paralyzing. Is it a Canadian thing? Does the U.S. do this better?

“Creating lovemarks America is a world power is all about the ability to understand because it’s number consumers’ dreams, one for innovation, to know what they want and when they entrepreneurship. It’s want it and to got more patents than create great anybody. It’s faster and it experiences that just washes off failure. In make your brand a part of their lives.”

America, you get second, — Kevin Roberts third, fourth and fifth chances to succeed. People there don’t dwell on failure, whereas Canadians seem to be embarrassed by it. You want to hide it. You’d rather not do it than fail.

We’re on an island on the edge of this continent. What advice do you have for entrepreneurs?

I’ve always believed ... in edge theory, a biological theory, which says the development of any species will come from the edge of that species. It does not come through the middle because the middle is too crowded. What are you seeing that comes out of France or Germany in terms of innovation now? It’s too hard to get through there. Instead, we see the real innovation coming from China, Brazil, the coasts of America, not the middle of America.

So here we sit, me from New Zealand and you in Victoria. I think we’re in prime real estate because we’re on the edge! So let’s stop trying to be like anyone else. We’re not going to manufacture, serve or scale our way to glory. The only thing we can do is have a great idea and execute it at speed. We should have velocity. We should be the first to the future. We should get to the future first because we’ve got nothing in the way. We’re on the edge.

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Given what you’re saying, it’s interesting that ‘entrepreneurial ecosystem’ is the current business buzz-phrase.

That ecosystem is very important because you can’t do it alone. No one in business here can.

We’ve got to all help each other. There’s a film, Lessons From Geese, that shows none of us are as good as all of us. When Canadian geese get tired when they’re flying they all begin to honk.

This motivates all the other geese to keep going.

So that’s what the entrepreneurial ecosystem is — everybody honking together. ■ Douglas 21

BuilttoLast

Island Construction Firms Take on the World

With an increasing number of multi-resourced construction firms from off-Island bidding on local jobs, is it possible for local firms to compete? The answer is mostly yes — especially if you play the home-team advantages. by Keith Norbury

In preparing its bid for Greater Victoria’s controversial sewage treatment plant at McLoughlin Point in Esquimalt, home-grown construction firm Knappett Projects spent close to $1 million. Knappett’s partner in the bid, the Canadian subsidiary of Spanish multinational Dragados, contributed a few million dollars more to their Capital Clear team bid, one of three that the Capital Regional District selected to respond to a request for proposals for the project.

With an estimated $782.7 million price tag, and one-in-three odds, the project was worth a gamble.

Except now that political infighting in the Capital Region has put the brakes on the project, Knappett and Dragados have next to nothing to show for all that work.

According to the terms of the RFP, the losing bidders will receive just $250,000 in partial compensation.

“It’s just sitting in limbo as far as I can tell,” says John Knappett, who founded his company 32 years ago after cutting his construction management teeth with the now defunct Dura Construction. “They have not awarded a contract and they have not terminated the process.”

A High-Stakes Industry The boondoggle illustrates just a few of the challenges, pitfalls and frustrations that Island construction firms face as they compete among each other and with national and multinational enterprises, for major projects. Sometimes big projects are simply beyond the capabilities of local companies. However, according to Island-based contractors, the projects that are too big for them are far fewer than one might think.

“Typically, it’s the size and complexity and the scope of jobs that attract international competitors,” says Greg Baynton, CEO of the Vancouver Island Construction Association (VICA), a 500-member organization representing the non-residential construction sector on the Island. VICA members concentrate on commercial buildings, like shopping centres, institutional buildings 22 Douglas

like schools, multi-family residences like condominium blocks, and infrastructure projects like highway overpasses.

When large firms from off-Island began winning a large share of those jobs in 2011 and 2012, “the local market didn’t react very positively,” Baynton says. Those outside companies have tremendous resources — such as their own architects, in-house engineering staffs and separate marketing departments — that small firms just can’t bring to bear.

Knappett, however, disagrees. The outsiders might have an edge on certain types of design-build projects, although even that’s not always the case. As he points out, Victoria’s Farmer Construction recently won the design-build contract for the new Oak Bay high school.

“There are few projects on Vancouver Island that our company couldn’t take on for size,” Knappett says. For instance, his firm recently completed the $104.8 million 443 Squadron maritime helicopter facility for Defence Construction Canada next to Victoria International Airport in North Saanich.

Other home-grown firms — like Farmer Construction, Campbell Construction and Kinetic Construction — are equally capable, Knappett says. While he would prefer that local firms get all the local work, he doesn’t sound too worried about competition from outsiders. He’s seen this movie many times before: a big firm from elsewhere comes to Victoria to take on a big project.

“But when those jobs are done, they aren’t competitive in the local market for the run-of-the-mill construction work and they generally pack up and leave,” Knappett says.

The Home Advantage Not every local firm is as ready as Knappett to square off with the big guns. Chris Erb, president of Nanaimobased SupErb Construction, says he avoids such confrontations by keeping to projects under $10 million.

Kinetic Construction is the contractor for Camosun Interurban’s Educational and Innovation Complex.

The 80,000-squarefoot facility is scheduled to open in spring 2016 and will offer improved accessibility to staff and students.

Jeffrey Bosdet/Douglas Magazine

Douglas 23

“I don’t care what they say, it’s hard to compete with those guys,” says Erb. SupErb has a core office staff of about five but can swell to as many as 75 workers and subtrades on a project. Recent projects include BMW/Mini, Mercedes-Benz/Smartcar and Subaru dealerships in Nanaimo, and the Mercedes dealership renovation and new Porche and Volkswagen dealerships in Victoria.

SupErb has also been contracted to build the Vancouver Island Motorsport Resort in the Cowichan. Competition is fierce for projects like these, even among the local contractors.

“There’s too many in my opinion,” Erb says.

But on smaller projects, of up to $50 million, locals have the competitive edge because of their local knowledge, says Baynton. Another advantage is they have rosters of carpenters, labourers and other trades that outside companies have to bring in. Being on an island also tends to keep the outsiders at bay.

“It’s difficult to relocate personnel here,” says Knappett, whose company at any given moment employs 125 to 150 people, working on 10 to 15 projects, ranging from $100,000 to $100 million. “We love it here but you find that many people don’t want to relocate here, particularly in the middle of their career.”

He recently received a call from a national company asking if he knew of anyone available

Vancouver Island Piling Driving was a subcontractor to SNC-Lavalin on the William R. Bennett Bridge in Kelowna, completed in 2008. The bridge joins downtown Kelowna to the west shore of Okanagan Lake.

to do a project in Victoria for a national client which was having difficulty staffing the job.

Another way national companies solve that problem is to call local union halls, says Phil Venoit, president of the Vancouver Island Building and Construction Trades Council, which represents about 7,500 unionized tradespeople on the Island.

For example, shortly after Montreal-based global construction behemoth SNC-Lavalin won

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the contract for the $1.1 billion upgrade of the John Hart Generating Station near Campbell River, it signed a deal with the Allied Hydro Council, which represents various building trades, “because they know that we have the qualified people who know how to do the work,” Venoit says.

When Size Matters Venoit says projects don’t really grow beyond

the scope of Island construction firms until they reach the half-billion-dollar mark. At that point, smaller companies don’t have the bonding capacity or a history of performing such megaprojects.

“Those jobs don’t happen every month or every year on a place like Vancouver Island,” Venoit says. “They come along maybe every decade or two.”

A global player that specializes in, say, building concrete dams will scout the world for those kinds of jobs and do one after another.

Nevertheless, the Island’s two largest projects — John Hart dam and the $606.2 million North Island hospitals project in Campbell River and Courtenay — have a lot of Island participation.

Farmer Construction is part of the consortium building the hospitals. Of the 217 people working on them in December, two-thirds were from the Island, according to the project’s January 2015 newsletter.

Carla Smith, president of CMF Construction in Nanaimo, says her company can take on projects of up to $100 million because it is part of the Carlson Group of Companies, which has bonding capacity of well over $100 million. While the hospitals project is beyond CMF’s capabilities, Smith would be interested in partnering on a job of that scale, as other Carlson Group subsidiaries have done. “But it has to be the right partnership and the right project,” she says.

For example, the group’s Vancouver Island Piling Driving was a subcontractor to SNCLavalin on the William R. Bennett Bridge in Kelowna, completed in 2008. The piling driving company subbed out the bridge deck to CMF, which has also done $65 million in bridge work in the Yukon in recent years. Which goes to show that Island firms can also compete on the mainland. Victoria’s Kinetic Construction even has a branch office in Vancouver.

“I spend a good deal of my time working with the Vancouver branch,” say Katy Fairley, Kinetic’s business development manager, recently named a director of the company. “It’s very different because here people know the Kinetic name. Over there, they haven’t heard of us and we are constantly educating people about ... what we can bring to the job.”

one other project for Pattison. “For some reason, we never came together,” Blair says.

Until now that is.

“Now we’re looking at all kinds of stuff with them,” adds Blair.

Some might say the adage is: if you can’t beat ’em, join ’em. Kinetic, for example, has collaborated with Ontario-based EllisDon on various projects around the Capital Region, including expansion of the Hillside Shopping Centre and the $173 million renovation and redevelopment of the Fleet Maintenance Facility at Canadian Forces Base Esquimalt.

“One of the reasons why EllisDon looked

at partnering with a local company is because they realized that there is a unique marketplace on Vancouver Island and that it’s very hard for off-Island firms to come on and be successful,” Fairley points out.

Kinetic is far from alone in partnering with larger off-Island companies, something Fairley says “speaks to the sophistication” and “progressiveness” of local firms “to notice the shift in the industry and what they need to do to stay competitive.”

At any given time, Kinetic employs 100 to 125 people, including management and work crews.

About 60 to 75 are tradespeople. In comparison,

View from the Outside Among major off-Island construction firms that have a Victoria office is Vancouver-based Ledcor Group. It recently completed the shiny new Jim Pattison Toyota, Scion and Lexus Victoria dealership buildings on Douglas Street.

Steve Blair, Ledcor’s regional manager in Victoria, notes the Pattison Motor Group and Ledcor are each part owners of the Shaw Tower in Vancouver and have offices on adjacent floors of the building. Yet until the 75,000 square-foot Victoria job came along, Ledcor had only done Douglas 25

EllisDon employs 2,500 people and has annual revenues of $3.2 billion.

Joint ventures aren’t for every contractor, Baynton says. “It’s in their genes (that) they like to march to their own drummer.”

Government Opportunity Local firms have a better chance than outside firms of winning contracts from government entities because the bidding process is more transparent, Knappett says. “Basically if you have the financing and the bonding and the ability to do the work you’re not limited by the fact you’re not a national company.” He

notes that local firms have won the majority of the DND building contracts in the region.

Bidding on jobs is the bane of a construction contractor’s existence. Kinetic prefers jobs with a pre-qualification process that restricts bidding to five firms, rather than an open-tender process where a dozen firms might compete. But even with five firms bidding, the chance of success averages out to 20 per cent.

“In a low-bid situation you’ve got cost certainty [from] Day 1,” Blair says. “And on Day 2 you’ve got conflict certainty, because the low bid is trying to make up what he left

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26 Douglas

Skills Shortages Loom The construction quarterly report of industry — across the the Vancouver Island western world, not just Construction Association on the Island — has (VICA). In metro Victoria, for years been bracing industry employment for impending skills tallied 12,100 in 2014, a shortages. An aging 7.8 per cent drop from workforce of baby 2013. boomers, who make up “So since 2008, we’ve the python’s belly of the kind of been in this industry’s workforce, is perfect storm of a really entering retirement. As poor economy,” says the boomers leave the Greg Baynton, VICA’s industry, the received CEO. “Not the economic wisdom holds, there environment to be won’t be enough qualified investing in training and newcomers to take their hiring people, and not places. even the work there to Some Island do it, even if you wanted companies are already to do it.” noticing a shortage of “I think the age of people skilled workers. going into the trades is probably a few years older Others aren’t than it was traditionally.” in a crunch yet, mainly because the industry still hasn’t Contributing to the fully recovered from the storm, he says, has been lingering recession that an educational focus on began in mid 2008. white-collar professions Island-wide, the plus problems in training construction industry at the high-school level. employed 29,500 people VICA’s parent in 2014. That was down organization, the B.C. 8.1 per cent from 2013, Construction Association according to a recent (BCCA), is undertaking

on the table.”

When Ledcor first came to the Island 12 years ago, the company had trouble getting reasonable pricing, Blair says. So it often brought in tradespeople from Vancouver.

“But when you look around the Island, there’s a lot of beautiful buildings that have been built by plenty of people that know how to build over here,” says Blair, who came to Victoria three years ago after eight years in Vancouver. “So there’s no reason to go to the mainland.”

Also, should a problem arise with a building that needs immediate attention, it’s impossible to get a contractor from the mainland to the Island site in a hurry. Ledcor’s advantage in competing with other off-Island firms is that “we’re here and we’re staying,” Blair says. “The advantage we have over people on the Island is that with 18 offices across North America and $3 billion a year in revenue for our Ledcor Group, we have a lot of friends out there that can help us if we need it.”

Ready to roll The total value of building permits on the Island topped $1.3 billion in 2014, an 18.6 per cent increase over 2013, according to a recent VICA news release. The boom was centred around the Nanaimo regional district, where

initiatives to address that.

Among them is its Skilled Trades Employment Program (STEP). Since 2006, STEP has placed 9,000 workers in entrylevel trades positions, says Abigail Fulton, BCCA vice-president. About one quarter of them are Island jobs, she estimates.

One thing John Knappett of Knappett Projects has observed is that “the age of people going into the trades is probably a few years older than it was traditionally.”

Much of the shift away from high-school

John Knappett, president, Knappett Projects Ltd.

grads entering trades is blamed on the decline in high-school shop classes, which the BCCA is trying to rectify. About a year

ago, it asked B.C. schools what they needed to bring shop classes up to snuff. The “ask” totalled about $9 million. So far, the association has raised $2 million from industry, employers and government, Fulton says.

Meanwhile, the Island local of the International Brotherhood of Electrical Workers has boosted its apprentice ranks to 300, compared with historical numbers of 65 to 80, says local 230 business manager Philip Venoit, also president of the Vancouver Island Building and Construction Trades Council. Apprentices now make up 20 per cent of the local’s 1,500 members.

On a whole, though, Venoit uses the word “chaos” to describe how the industry is approaching training and recruitment.

“Businesses know what their needs are today,” Venoit says.

“They don’t really take an in-depth analysis of what their needs are going to be a decade from now or half a decade from now.”

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building permits increased by 72 per cent in the non-residential sector. But non-residential construction declined in Greater Victoria last year by 10.4 per cent.

For the last quarter, however, the trends were reversed, with Victoria’s non-residential permits up 37 per cent over the fourth quarter of 2013, and Nanaimo’s dropping by 55.7.

“There’s still a lack of work generally,” Baynton says, expressing a common sentiment.

“So it’s an acutely competitive marketplace ...”

But optimism prevails in the industry, ranging from the “cautious” type expressed by Kinetic’s Fairley to Venoit’s more exuberant variety.

“Holy smokes, if there’s anyone who is not optimistic about the balance of this year, next year and 2017, they’re not keeping their eyes open,” Venoit says. He anticipates a boom in multi-family housing — driven by millennials seeking to enter the housing market for the first time, and aging baby boomers looking to downsize or move into assisted living facilities.

Those retirees will come from across Canada and the U.S., the latter enticed by the weak loonie. All those people will need pharmacies, doctors, and other services — all of which will require new drug stores, clinics, hospitals, and other buildings and infrastructure. Perhaps even a sewage treatment plant. ■

The secret of the smile...

Douglas 27

“Entrepreneurship is about turning what excites you in life into capital, so that you can do more of it and move forward with it.”

— Sir Richard Branson, founder of the Virgin Group

28 Douglas

6th Annual

10 to Watch Winners To borrow the words of Ralph Waldo Emerson, “Nothing great was ever achieved without enthusiasm.” If there is one trait this year’s Douglas 10 to Watch winners all share, it is their enthusiastic approach to business.

Whether they’re creating a categorychanging grocery product, transforming Internet advertising or empowering artists to earn sustainable incomes through web commerce, these entrepreneurs have built their companies on a zest and zeal for what they do. This fact was particularly noted by the judges — most of whom have been around since the very first Douglas 10 to Watch in 2009.

“The passion of the entrepreneurs was definitely something that stood out this year,” says judge Deirdre Campbell of The Tartan Group. “I think every winner is doing something they truly love.”



Again this year, our judges reviewed a record number of applications. And as the number of applicants grows, so does the level of competition.

As judge John Juricic of Harbour Digital Media says, “Since we’ve started, the word and brand of this project has really got out there. We’re seeing a larger number of applications from successful businesses who have already done so much worth watching and who are poised to take their company to the next level.”

Another universal quality of this year’s winners is their success at finding a gap in the marketplace instead of simply responding to trends. These are companies that are in it for the long haul, not a quick win.

Luckily, longevity and success are fuelled by passion. So let these businesses, and their passion for what they do, inspire you.

10 to watch Judging Panel

DEIRDRE CAMPBELL President and chief development officer, The Tartan Group

DR. REBECCA GRANT Associate professor, University of Victoria, Peter B. Gustavson School of Business

JOHN JURICIC Owner, Harbour Digital Media

DANIELA CUBELIC Owner, Silk Road Tea

MIKE THOMPSON Associate professor, management consulting, Royal Roads University

Facilitator CATHY WHITEHEAD McINTYRE Principal consultant, Strategic Initiatives

Douglas 29

10 TO WATCH 2015 TITLE SPONSOR

MOVING AHEAD

BY GIVING BACK

Passion and perseverance are the drivers of success behind any new business.

And that’s what inspired our founders, as they went door to door in local neighbourhoods, encouraging people to join them in something they believed in strongly — the co-operative business model. Today, our core business continues to meet the needs of our community with our grocery, petroleum, and home heating products.

We are Your Neighbours

Cardlock Program

With our grocery store on Keating X Rd and 15 gas centre locations in Greater Victoria, Saanich Peninsula, Westshore, and the Cowichan Duncan area, wherever you are on Southern Vancouver Island, there’s a Peninsula Co-op ready to serve you. On your way to work, on the weekend, and as you begin your holidays, you don’t even have to get out of your car — it’s our pleasure to offer you full-service gas at self-service prices.

When our commercial clients told us they needed service outside of regular hours for their fleets, we listened.

The Peninsula Co-op Cardlock program offers commercial operators 24-hour access to 10 locations, each with regular, mid-grade, premium, diesel, and marked diesel.

Our commercial credit card program is also available.

A TIMELINE OF SUCCESS

Opened for business as a warehouse co-op on Keating X Road in Saanichton.

1977

Opened a one-lane, two-pump gas centre in 1980. Turned the focus to marketing and valueadded programs. Started supplying gas to SaveOn Gas. Sales exceeded $10 million by 1988.

1980s

Added several new locations, including a new retail/commercial cardlock and car wash at Keating X and Oldfield Rd, as well as renovations and upgrades at some locations. Launched the home heating fuel division.

A major renovation of the Food Centre included an expanded warehouse and a new administrative office. Sales exceeded $30 million.

1990s

“Douglas’ 10 to Watch program supports new businesses and economic development on the Island, and those principles align perfectly with Peninsula Co-op’s commitment to give back to the community.”

— PENNY SOPEL, Marketing & Community Relations Manager

DID YOU KNOW? Peninsula Co-op currently has over 74,000 active memberowners and in 2014 we gave back $5.7 million in rebates.

We also donated in excess of $400,000 to over 200 local charities, organizations, youth groups, student scholarships and community projects.

Wale Road Gas Centre, 321 Wale Road, Colwood

Community Support

Membership

Peninsula Co-op was founded on community support.

Our goal has always been to enhance the lives of our customers and our community by providing quality products at competitive prices and with the best service. Each year, Peninsula Co-op donates a portion of its profits to over 200 local charities, organizations, student scholarships, and community projects. In 2014, the donation exceeded $400,000.

How many loyalty programs write you a cheque? Peninsula Co-op does. Last year, member-owners got a 5% rebate on their grocery purchases, a 4.9-cent per litre rebate on their gas and home heating purchases, and bonuses for referrals. All this on top of full-service gas at self-service prices. And at just $27 for a lifetime membership, what is there not to love? Yes, you only pay once! If you’re not a member, you can still enjoy Peninsula Co-op — you just won’t get all the perks.

Between acquisitions and new builds, four locations were added with major renovations at five centres and a name change from SaveOn to Peninsula Co-op. Sales increased from $50 million to over $137 million.

The Mill Bay, South Duncan, and Cowichan locations contributed significantly to growth in members and sales. With more renovations and the addition of a third fuel-delivery truck, sales in 2014 reached $184 million, membership continued to climb past the 74,000 mark, and member rebates totaled $5.7 million.

2000-09

2010-present www.peninsulaco-op.com

Winner

 Type of business

Photography concierge service for travellers

Flytographer “I really want people to understand it’s not just about a photoshoot. It’s much deeper than that — it’s about capturing moments that you don’t want to escape.”

moments, but many people invariably come home disappointed in snapshots and selfies.

Several years ago, Nicole Smith was spending a weekend in Paris with her best friend. “When would we ever be in Paris alone with no husbands and kids again?”

Smith says. “...We thought, ‘This is like the opus of our friendship so let’s capture it in photos.’”

But selfies and photos of them taken by strangers were disappointing so they asked an acquaintance to hang out with them to capture candid moments.

“When I looked at the photos after,” Smith recalls, “I got goosebumps. [Our friend] had chronicled the spirit of our trip in a way we never could have. I thought,

‘I’d pay money for this — this is the best souvenir.’”

So Smith launched Flytographer, the world’s first photography concierge service and left her consulting job with Microsoft a year later. Support through Accelerate Tectoria and $650,000 in seed financing from nine B.C.-based angel investors helped Flytographer to soar and get a headstart on copycats.

Today, Flytographer works with local, well-vetted photographers in 140 countries to capture the spirit of travellers’ vacations.

Customers range from couples to girlfriends to families. Flytographer has also formed a global partnership with FRHI Hotels & Resorts (Fairmont, Raffles and Swissôtel) so guests can buy Flytographer services on FRHI websites and through concierges.

Year founded

2013 Company Logo

Owner/ principal

Nicole Smith Employees 5 FT

and 3 PT What Sets you Apart? We are

literally the first company in the world to offer travellers the ability to easily book a great photographer in cities across the globe for short, candid vacation shoots.

with nicole smith of flytographer

When did you really begin to think this idea had legs? ...NBC heard about Flytographer and called to interview me, but I was at the doctor with my son.

I literally couldn’t talk to them! I’m like, “Can I call you back in an hour?”

Fortunately, she said sure. We did the interview

and that Monday the homepage of TodayShow. com and NBC.com was Prince Harry, Angelina Jolie and us! It was a big moment and we got a lot of [web] traffic from that.

What scared you most about starting a company?

Fundraising. Trying to raise

money is really hard. The company is kind of like your baby — you’re putting it out there. People react to it, and some don’t react in the way you hope they will ... Then, when you get the money, you have to make sure you’re doing the right things with it to grow the business.

jeffrey bosdet

Q&A

Travellers love to capture vacation

jeffrey bosdet

Business Profile

Douglas 33

2015 SPONSOR M A G A Z I N E’S

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Winner

 Type of business

Mobile advertising company Year founded

2013

pretio Interactive “You know those ads that constantly pop up in games and apps?

The ones that take over your screen ever y time you hit a new high score or lose a life ...

That’s not us.”

brands have long complained about internet advertising. Consumers ignore it. It yields dubious results. Two years ago some Victoria entrepreneurs decided to do more than complain. They launched a mobile advertising company that reaches customers when they are most receptive. Maybe you just logged an extra 5km on your fitness app. How about a coupon for a free sports drink? That’s Pretio.

Pretio’s technology aggregates engagement programs and reward networks so customers like LiveNation or Beyond the Rack can reach consumers in optimal moments. “It’s about removing all that noise from advertising and focusing on the right moment to be engaged with the consumer,” says Ty Sinclair, the entrepreneurial prodigy who launched Pretio.

Four major events occurred to accelerate

Pretio’s growth. First, Pretio raised an angel round from local investors and brought startup veteran Jim Hayhurst on board as president and CEO. The company then raised additional funding from Wesley Clover International and Vancouver-Yaletown Venture Partners. Next, they bought Tap for Tap, a mobile ad network for apps, and gained access to its 12,000 app developers — a perfect pairing.

Operating out of a Vancouver St. office, with a Boler camper and VW van parked in their workspace, Pretio runs by three core values: 1) start with why; 2) no shenanigans; and 3) draw the owl.

“Draw two circles,” laughs Hayhurst. “That’s most of it. Now just draw the bleeping owl.

We saw that and thought, ‘That’s who we are.’

We’re trying to do things that haven’t been done — or others have done them, but it’s taken millions. We don’t have a huge team or a lot of time. So just do it. The world’s not going to stop if you show something that’s not ready for primetime. Do it.”

Company Logo

Owners/ principals

Jim Hayhurst, CEO; Tyrone Sinclair, COO; Rob O’Dwyer, CTO; Vivienne Damatan, VP Sales Employees 7 What Sets you Apart? We started

Pretio because we think those internet ads suck and we know they don’t work. Pretio’s technology lets [brands] reward you with real-world offers relevant to your interests.

with Jim Hayhurst & Ty Sinclair of Pretio interactive

What scared you most about the startup process?

Jim  Early, we discovered our competitors had way more money than us. We knew we couldn’t compete on that basis. We decided we could either compete or collaborate, so Ty ... began discussions with them. It ended up that

they had a problem getting the number of rewards they needed to fill all of the ‘moments’ they were creating. They said, “If you guys could help us by backfilling some of our rewards, we think that’s a great business.” Most of our major competitors turned into our customers.

The mobile world moves so fast. How do you keep up?

TY  I just really try and stay focused on where we want to get to. I mean, there’s so much noise with the industry as a whole and various sectors, but I have a pretty clear picture on where I want to get to.

joshua lawrence

Q&A

joshua Lawrence

Business Profile

Douglas 35

“…in Victoria, across the country, and around the world.”

People who know, know BDO.SM

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Winner

Victoria Pie Co. “Our pies bring people together around the table and they reconnect people with the way Grandma made pies — slow, simple, from scratch and all by hand, using the highest quality, local ingredients.”

Business Profile

 Type of business

Pie bakery Year founded

2013 Company Logo

Owner/ principal

Sometimes it takes that Employees 4 metaphorical kick to propel What are You people into pursuing their dreams. most proud of?

Such was the case with Robyn My staff. They’re phenomenal.

Larocque, the owner of Victoria What would I do Pie Co. In 2012, she was a “highly without these disillusioned” public servant, people? They’re working on a part-time MBA, when so dedicated to the product and a diagnosis of cervical cancer threw so dedicated to her life into sharp perspective. their jobs and “In the end, it was not a big deal to the future of Victoria Pie Co. medically, but it was a year and a as we expand. half of not having any idea of how They’re just such bad it was or how bad it could be,” a great group of people.

Larocque says. “It was absolutely very influential in every decision that I made.”

She knew she wanted to be part of the entrepreneurial community and to do something meaningful with her life. Focusing on her two farmers at the close of the market?” she says. passions, food and food security, she had an One of the original businesses in the epiphany.

Victoria Public Market, the Victoria Pie Co. “How better to improve food security on makes all of their pies 100 per cent from Vancouver Island than to make beautiful, fromscratch, from the cream sauces to the handscratch pies from the bruised and battered fruit, pressed butter and olive oil crusts. berries, veggies and meat left over from the And Larocque is now looking at possible

locations in Vancouver and Calgary, which would use co-operative ownership models, so that staff have a stake in the company’s success.

“Someday we will be so proud to say we’re a Vancouver Island business, born and bred.”

with ROBYN LAROCQUE of Victoria Pie Co.

When did you know this was going to work?

You don’t ever decide, “Well, it works.” You just decide, “Today, we’re doing it.” You check in every day. I don’t think — certainly not in this industry — that you can ever relax and say, “We did it.”

How far ahead do you let yourself look?

Right now, we’ve got a six-year plan. We will be opening our second location this fall and then we’re intending on opening another location every two years.

What advice would you give to someone starting out?

I’ve definitely learned this about being an entrepreneur: if you want 100 per cent of your questions answered, you’ll miss the window. It’s a balance between being really well-researched and knowledgeable and just taking the plunge.

Jeffrey bosdet

Q&A

Jeffrey bosdet

Robyn Larocque

Douglas 37



Raincoast contoured panels “Imagine if the design elements in your project weren’t limited by what you could find, but by what you could envision?”

artists, businesses and homeowners, everyone who sees the 3D decorative wall installations from Raincoast Contoured Panels has a similar reaction: I need to have this.

That’s the reaction Gordon Smith had when he saw the potential of using a CNC machine and intuitive software to create a form of architectural art unique in the design world. Smith, owner of Cowichan Woodwork, then sought out another respected woodwork specialist, Rick Beason of Raincoast Door and Specialty Wood Products. Together, they launched Raincoast Contoured Panels.

Since then, Raincoast has received rave reviews at Buildex and IDS West,

Type of business

exhibitions visited by the design and architecture crème de la crème.

In their Forest Stewardship Councilcertified facility, Raincoast can ‘precision machine’ almost any material, from wood to Corian, using the client’s design or theirs, in unlimited colours, textures and sizes.

Island Savings’ Chemainus branch, for instance, features a stunning 52-foot by 16foot contoured wall from Raincoast. Stikeman Elliott, a Vancouver law firm, boasts a backlit ceiling created to look like bark. Raincoast panels are also popular landscapes for brand names and logos.

Northwest Coast artist Rande Cook, quickly saw the potential for creating 3D contoured “prints” of his work. Each piece becomes an original, signable by the artist.

Cook will show a golf-leaf piece at the Inuit Gallery of Vancouver, opening July 25. And watch for 14 high-profile works of public art from Raincoast, coming to Richmond this summer.

Custom-designed architectural panels Year founded

2012 Company Logo

Owners/ principals

Rick Beason Gordon Smith Employees 20 What Sets you Apart? Never

before has the building industry been offered the opportunity for customer-designed 3D contoured wall panels and components.

with Rick Beason & Gordon Smith of Raincoast

When did you first realize you were really onto something amazing?

Rick  The first show we did was IDS West in Vancouver. I was absolutely flabbergasted with the reaction from the design community. They were completely amazed.

When I called my wife ... I

just couldn’t stop thinking about it. I couldn’t stop talking about it.

What advice would you give to others just starting out?

Gordon  There’s an advantage in being our age and a disadvantage as well. The advantage is, we

bring a lot of background and experience. We understand the market, we have the network and that’s of huge benefit.

You don’t always have that when you’re a young entrepreneur. So it’s reminding people that you can be an entrepreneur at 50 or 58 — or any age.

jeffrey bosdet

Q&A

From designers to architects, to

jeffrey bosdet

Winner

Business Profile

Rick Beason

Gordon Smith

TD Canada Trust - Small Business Banking is proud to support the 2015 Douglas Magazine’s 10 to Watch.

Congratulations to this year’s 10 to Watch winners.

TD Canada Trust - Small Business Banking salutes your innovation and entrepreneurship in our community.

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M05234 (0314)

 Type of business

Frozen treat company

Deebee’s “There is no other organic frozen tea product on the market. This is a categor y game changer, formed from the simplest and purest ingredients.”

of DeeBee’s SpecialTea Foods since its inception in 2012 has seen the company grow from an idea in the family kitchen into a business with distribution across North America and export inquiries from China, India, the U.K. and Mexico.

“We wanted a product that our own son could eat,” says founder Dr. Dionne Laslo-Baker. “He has a diet that excludes refined sugar, artificial colouring and flavouring, and in the dessert category, that is hard to find.”

So what is the product fuelling the rapid growth of DeeBee’s? It’s TeaPops, an organic frozen tea novelty with no refined sugar and available in a variety of flavours.

Not content to rest on their laurels,

Year founded

DeeBee’s has been reformulating their TeaPop flavours, even bringing on a chef to perfect the taste.

“Call us an evolving company,” Laslo-Baker says. “We want to listen — we may not necessarily want to hear the negative feedback but that’s what I thrive on.”

Along with winning a New Exporter Award by the B.C. Ministry of International Trade, the company secured funding from the National Research Council of Canada’s Industrial Research Assistance Program. The money is being used at DeeBee’s Centre for Research and Innovation at their head office in Esquimalt.

“Over the next year, we’ll probably be launching other products under the DeeBee’s brand and we’ve been told some of those might be even more exciting than what we have out now.”

2012 Company Logo

Owners/ principals

Dr. Dionne LasloBaker and Dr. Stephen Baker Employees 9 how are you innovative?

Through DeeBee’s we can give a voice to science and teach others about the impact of the foods we eat — on ourselves and our planet.

with Dr. Dionne Laslo-Baker of deebee’s

What has been your biggest challenge?

Finding balance as a working mother and the leader of a startup.

Making sure my family know that they’re number one but also knowing myself that there’s no opportunity for failure in our business. We’ve

invested so much time, passion, sweat and savings.

How far ahead do you let yourself look?

Right now, the goal is finding partners. We feel we need to work with strategic investors in order to grow to that next level.

What advice would you give to someone starting out?

I would say: know what you don’t know and feel free to ask for advice. You can never have enough information and if you can seek it out, people are so happy and willing to give advice.

simon desrochers

Q&A

The impressive trajectory

simon Desrochers

Winner

Business Profile

Douglas 41

2015 SPONSOR M A G A Z I N E’S

TO WATCH

Winner

Superbath

Never underestimate that

 Type of business

Mobile car wash Year founded

2014 Company Logo

Owners/ principals

Adam Kittredge Blake Henwood Employees 2 full time, 3 part time

sense of pleasure that comes from How is your having a clean car. business innovative?

“It gives people a little bounce in Each component their step and a little mojo,” says of Superbath as Blake Henwood of Superbath, a a company has been developed mobile car-wash service. with the capability “People thank us for helping of franchising to them organize their lives a little. manage multiple That’s surprisingly satisfying.” vehicles in different locations.

In 2013, Superbath cofounders, Henwood and his cousin Adam Kittredge, saw a gap in the car-wash market, which had no offerings between the inexpensive gas station quickie and the high-end, all-day detailing service.

“We’re really hoping to open up detailing to a much wider demographic,” Kittredge says. “It’s the exterior and interior of the vehicles, designed for busy parents and business people meaning they don’t need chemicals, shampoos who would spend just over $100 to $200 for or soaps, and there is no run-off into the water a complete cleaning and can only tie up their shed. The use of steam also allows them to vehicle for a few hours.” use only 20 per cent of the water used in a Their self-contained Superbath vans carry all traditional car wash. the water required and can go to a customer’s From the beginning, Henwood and Kittredge home or work. Their system uses steam to clean

had expansion in mind and the company was developed with the capability of franchising.

They’re hoping to have franchising opportunities as early as this summer.

“This could work in so many locations,” Henwood says. “From Victoria to South Africa.”

with blake Henwood & Adam Kittredge of superbath

What was the best advice you got when starting out?

ADAM  To be very concrete about our branding before we really started marketing ourselves. So we decided out of the gate that we wanted the branding to have really strong bones: our image needed to be

consistent, our artwork needed to be consistent, our website needed to be well-designed and accessible and our booking system had to be modern and easy to use.

What are you most proud of so far?

BLAKE  One of our

goals was to create a bit of a carwash culture in Victoria, like you see in the Southern states, so we tried to have fun with it and have people enjoy it. One thing that has impressed me is the speed with which we have accomplished this.

Blake Henwood

Adam Kittredge

Douglas 43

Derek Ford

Q&A

Derek Ford

“It’s a unique ser vice with great growth potential on Vancouver Island and beyond.

Superbath is poised to take car detailing and washing into a new area of convenience.”

Business Profile

Island BMW

islandbmw.ca

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740 Roderick Street | Victoria BC 250.474.2088 | islandbmw.ca © 2015 BMW Motorrad Canada. “BMW”, the “BMW Logo”, “The Ultimate Riding Experience”, all BMW model designations and all other related marks, images and symbols are the exclusive properties and/or trademarks of BMW AG, used under licence.

Dlr#30561

 Type of business

Microstock photo agency

stocksy “Stocksy wanted to take a dramatic leap forward, to further empower photographers to make sustainable incomes through web commerce, and to push the artistic boundaries of what stock photography can be.”

Year founded

The solution? “Be more creative and more strategic with our spending and efforts,” says Wettlaufer.

Stocksy offers a carefully curated online collection of over 100,000 “modern, relevant, authentic” images from photographers who are also co-owners of the company. Fifty per cent of the initial royalty and 75 per cent of every extended license goes directly into the photographer’s pocket.

Cooperative profits are distributed back to members yearly.

Stocksy made such a splash that the big agencies soon began calling, wanting to license Stocksy’s collection but the company has not done so.

Wettlaufer, who has played in the big stock leagues previously, says Stocksy has its own vision. “If you’re going to compromise the integrity of your product, just step back.”

2012 Company Logo

Owner/ principal

Brianna Wettlaufer, CEO Employees 20 What Sets you Apart? Our need

to be constantly disruptive keeps us on our feet. Being a cooperative, we have the advantage of being in complete creative control of our business.

with Brianna Wettlaufer of stocksy

What was your biggest startup challenge?

Stocksy is a transparent co-op, which means major decisions are debated and voted on by our collective ... Probably the biggest challenge is just that aspect of “Can we make this level of transparency work and how do we balance that?”

Do you put a lot of focus on a business plan?

I’m more about getting the product out there, starting to figure out what works, what doesn’t. It’s good to know your goals five or 10 years ahead so you know what you’re working toward, but we’re in a fluid industry —

things are moving so fast.

You never know what little new introduction to the [web]site is going to change your business model. So if you’ve spent months building a business plan about other things — that’s just a waste of time.

Jeffrey bosdet

Q&A

out of chaos great business ideas are often born. That’s certainly the case with Stocksy, a Victoria-based global online stock photography agency that turned its back on clichéd photography and meager artistic compensation offered by many megastock agencies.

Instead, Stocksy created a cooperative business that in just three years has disrupted the industry and made photographers and clients — including a growing roster of Fortune 500 companies — very happy.

“Being a cooperative we have the advantage of being in complete creative control of our business,” says CEO Brianna Wettlaufer, “but we do face the difficulty of competing against larger companies backed by venture capital.”

Jeffrey bosdet

Winner

Business Profile

Douglas 45

2015 SPONSOR M A G A Z I N E’S

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Winner

 Type of business

Pomme

Natural Market “Our indicators for success are the differences we make in the lives of our customers and in the communities that we ser ve.

One of our mantras is ‘a better world through better food.’”

Year founded

2014 Company Logo

Owners/ principals

David Arnsdorf, Craig Hermanson, Ed Low and Rasool Rayani Employees 100 What Sets you Apart? We’re

exclusively organic and natural, and we try to have a really well-curated offering in the store.

with The Owners of pomme

What advice would you give to someone starting out?

Rasool  Build a great team: identify and look for people who complement your own skills, and look for the best possible talent you can find.

David  Knowing your numbers is critical. It’s

not as sexy as some of the other things you do when you’re building your business but it’s fundamental to its ultimate success.

Ed  One of the lessons my dad taught me has worked well for me: Keep your word to your suppliers,

to your staff and to your customers, because your word is everything.

CRAIG  Be sure you understand your customer and that your business is viable. Everybody loves their own ideas and forgets that not everybody else is going to.

Rasool Rayani

David Arnsdorf

Ed Low

Craig Hermanson not pictured

Douglas 47

gregg eligh

Q&A

What do you do when you can’t find a service you want? If you’ve got an entrepreneurial drive, you create it yourself.

Pomme Natural Market was born out of a dissatisfaction with the conventional grocery experience. Pomme’s four founders — David Arnsdorf, Craig Hermanson, Ed Low and Rasool Rayani — all have young families and were looking for a better selection and an increased availability of healthy foods.

“The idea of being involved in a business that promoted a healthy lifestyle and made it more widely available to people was pretty compelling,” Arnsdorf says. “Our business model is to offer

everything that a conventional grocer would, but in an organic or all-natural format, with an eye on ecological responsibility and sustainability.”

Since opening their first location last year, a 16,000-square-foot store in Port Coquitlam, the company has rapidly expanded, with locations in Vancouver and Nanaimo, and a warehouse and head office team in Victoria.

The four partners agree that one of the biggest challenges in setting up their business was the recruitment of qualified, knowledgeable staff in a very specialized industry. It’s a task they’ve met well with their 100-plus team.

“We’re blessed with having staff who are very passionate about the natural and organic products we sell, even choosing [products] for themselves and their families,” Rayani says.

“And that makes them more credible ambassadors for us and our customers.”

Natural and organic grocery retailer

gregg eligh

Business Profile

Yes, agility is essential in today’s business world. Since you’re already thinking this way, you’d be perfect for our School of Business.

Follow your path at Royal Roads University School of Business.

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2015 SPONSOR

Winner

elate

Clean cosmetics

Anyone who feels the

Business Profile

 Type of business

Sustainable cosmetics company Year founded

2014 Company Logo

Owner/

principal cosmetics industry is only skin Melodie Reynolds deep will change their minds when they discover how much heart and Employees 1 soul Melodie Reynolds has put into What Sets you creating Elate Clean Cosmetics.

Apart? Walk into This spring, Reynolds, who has any cosmetics been a Victoria-based makeup artist store and you’ll find products that for 16 years, launched a commercial are chemical free cosmetics company that is crueltybut not cruelty free and chemical-free. “You can free, or cruelty free but not chemical even eat my lipstick if you want to,” free. Elate has no Reynolds laughs. chemicals and Elate supports the concept of it’s not tested on animals. “clean beauty,” from its ingredients (no petrochemicals, animal products, harsh preservatives or ingredients that compromise FairTrade) to its sustainably grown bamboo packaging. Reynolds envisions one day having completely biodegradable packaging, their own skincare and bodycare products. including labels made from bio-stone.

“It’s about transparency,” she says. “I She notes the cosmetic industry competition would much rather share my knowledge is “fiercely fierce” so Elate is also designed to with people than keep it to myself. And if perform at the professional level expected by one of them chooses to then start their own makeup artists. company, awesome. I hope they contact me Elate has two divisions: a makeup division because I’d love to invest.” and a workshop division to teach clients to make

Her vision is huge, but she’s up for it.“A friend of mine said, ‘I hear you’re starting a home-based business?’ And I was like, ‘No, I’m going to start a world-class company that just happens to based out of my home.’

So I’m always thinking bigger and figuring out what the next thing is for me.”

with Melodie reynolds of elate

What’s the best business advice you’ve received?

To treat my company as if it were a person. I’m a person and I have a personality, a soul, ethics and values — so does my company. So I have a map in the shape of a person with a nametag that says, “Hello, I’m Elate.” ... Would

I like this person if this is what they were saying or doing?

What was the scariest business startup moment for you?

I started with a different name but found someone had trademarked it. It was early on so I changed

my name. But I didn’t learn! I’d trademarked the new name in Canada but not the U.S., even though I want to expand there ... but someone had registered Elate in the U.S. I drank half a bottle of wine and got some good advice.

Fortunately, it actually turned out OK.

Jeffrey bosdet

Q&A

Jeffrey bosdet

“Elate is completely natural, completely healthy and it’s sustainable, but it also works the way professional makeup artists need it to work.”

Douglas 49

 Type of business

the pedaler “Travellers want an authentic experience when they visit a destination.

We are getting visitors on stylish bicycles to explore Victoria like a local.”

Lee and Paul Rayman describe their business, which runs guided tasting tours on bicycles. They have married two of Victoria’s most popular pastimes — cycling and craft beer — and created interesting routes to showcase the city’s vibrant neighbourhoods.

To satisfy the variety in their customers’ interests, they also offer culinary tours to sample the city’s best eats and coffee culture, as well as lighthearted historical tours.

“People come back from a rental or a tour and they’re giddy,” Lee says.

“When people ride a bike, it changes something in their brain. There is some science about the effects of coasting on a bike as an adult.”

Locals are also becoming more interested in the tours and many bring visiting friends and relatives.

“One of the things we’re very proud of is that we show them places they’ve never heard of,” Rayman says.

Lee, an IT project manager, and Rayman, who works in film production, used their retirement savings to finance their passion project. Both credit its success to the support of Tourism Victoria and the willingness of other local businesses to collaborate.

“What we’re doing is only as interesting as the people we’re partnering with,” Lee says. “It is a reflection of how many interesting things and cool businesses are in Victoria. We’re just stitching them together by bicycle. Without them, the tours would still be pretty, but now people can taste all the wonderful too.”

Year founded

2013 Company Logo

Owners/ principals

Rosemary Lee Paul Rayman Employees 10 What Sets you Apart? We are

actually getting more people on bicycles and showcasing why Victoria is a great place to visit — and why it is a great place to live.

with Rosemary lee and Paul Rayman of the pedaler

What scared you starting out?

ROSEmary  Failing publicly. Opening a bricks and mortar shop and not succeeding.

What was your biggest challenge?

ROSEmary  Designing the tours seemed simple 50 Douglas

Local bicycle tours

on the surface but there were many moving parts.

Firstly it was going around and talking to the businesses we thought would make good stops.

They were used to people coming in buses or vans, spending an hour and drinking a lot, so it was educating them as to what

it could look like as a tasting and an opportunity to tell their story.

What advice would you give to someone starting out?

PAUL  People will give you a lot of advice and there will be a few gems.

Listen to all of the advice and then follow your gut.

simon desrochers

Q&A

“Selling joy” is how Rosemary

simon desrochers

Winner

Business Profile

TO WATCH

M A G A Z I N E’S

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Thank you Now in its sixth year, Douglas magazine’s 10 to Watch Awards foster business growth by increasing awareness of new local businesses who exemplify innovation and an entrepreneurial spirit. This could not be done without the support of our sponsors.

title Sponsor

supporting Sponsors

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Douglas 51

Why the Island Needs the Orca

by Judith Lavoie

The orca is celebrated everywhere on Vancouver Island, from tourist brochures to postcards to corporate logos, and tourists flock here to see this majestic mammal in the wild. But as much as we revere and study the orca, only 81 southern resident orcas remain. the Toxic threat Orcas suffer from exposure to high levels of toxicants (e.g.

PCB, PBDE and DDT), which are stored in their fat and breast milk. Oil spills, household pollutants, agricultural pesticides — all impact the orca.

Mark Malleson

Noisy Oceans Ferries, recreational boats, whalewatching boats, tankers, container ships and naval use of sonar — all of these noises cause stress for orcas, impact their communication and interfere with the clicking sounds they use to locate salmon.

52 Douglas

While the moral and environmental case for saving the orca is clear, there’s also a strong business case for taking urgent action to protect the orca — and a good portion of our coastal economy depends on it.

Economy lack of federal action plan Twelve years ago, orcas were listed as an endangered species in Canada, but a federal action plan is lingering in the draft stage and critics say the plan is not comprehensive enough and urgent action is needed.

Orcas are a keystone species, helping to balance the entire ecosystem.

When a keystone species is at risk, the entire system is at risk.

Pac ifi c

No rt t es hw

nal tio Na Lab

declining fish stocks Declining salmon stocks, including Chinook, mean orcas can’t meet their nutritional needs. That impacts their reproduction and increases risk of disease. Stopping overfishing and ensuring a healthy wild salmon habitat is vital.

Global Warming Global warming is heating some rivers and streams to temperatures deadly to fish.

It is having the same effect on oceans. This impacts both orcas and their food supply.

Douglas 53

It’s a common summer sight in Victoria:

Whale watching is among the most popular and lucrative southern Vancouver Island tourist attractions, something reflected around the region with corporate killer whale logos, orca statues on the streets and entire pods of fluffy, black-and-white stuffed whales for sale in stores. There is no doubt that killer whales, also known as orcas, are the de facto mascots of Victoria tourism.

A 2014 exit survey of visitors by Tourism Victoria, with 597 completed surveys, found that 20 per cent were looking forward to marine wildlife viewing and 13 per cent took part in a wildlife viewing activity.

The popularity of whale watching is underlined by the first ever trans-boundary study conducted by the Pacific Whale Watch Association, a group with 31 member companies in B.C. and Washington State. Raw figures from that study show that between January and October last year, there were 13,562 whale-watching trips through the Salish Sea, carrying 362,001 passengers.

“Whale watching has been growing steadily above the clip of economic recovery,” says the association’s executive director Michael Harris.

The association has 18 member companies in Washington State compared to 13 member companies in B.C, including eight in Greater Victoria.

B.C. operators, with higher fares and the advantage of being situated in tourism hubs, generate more gross revenue and Victoria is the biggest market, according to the association.

Numbers from the study are now being refined and will then be released by the association, but a back-of-the-envelope estimate, based on a cost of $70 per person, would put the gross annual revenue for Salish Sea whale watching at a healthy $25-million, split between Washington and B.C. That comes as no surprise to Brett Soberg, captain and co-owner of Eagle Wing Tours.

“People come from halfway around the world just to go whale watching. It’s a powerful experience and, for a lot of people, it’s on their bucket list.”

Then add in economic spin-offs in everything from ice cream to pedicabs, says Soberg, pointing to the crowded businesses around Fisherman’s Wharf.

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shorelines photography

excited tourists wearing puffy red or orange survival suits waddling awkwardly towards moored Zodiacs, or checking raingear and binoculars as they are herded onto larger vessels.

J51, born in February 2015, with mother Eclipse (J41) and grandmother Shachi (J19)

“The economic impact is amplified by a factor that’s almost unfathomable,” he says.

Tourism consultant Frank Bourree of Chemistry Consulting, who is also president of the Greater Victoria Chamber of Commerce, says whale watching, and particularly the chance to see orcas in the wild, is part of the “supernatural B.C.” experience.

“We don’t have a lot of schlocky tourist attractions in Victoria and killer whales are one of the things that people come here for,” he adds.

Not Such Smooth Sailing Most whale watchers are thrilled with the activity they witness on the water, especially as recent years have seen the return of humpback whales, and migrating gray whales are becoming more common. Last year, there were also an unusually high number of visits from the marine-mammal-eating Bigg’s killer whales, also known as transients, and appearances by the “California exotics,” a little-known group of offshore orcas.

But, not everything is smooth in whale waters.

The iconic southern resident killer whales, which spend much of their time in the Salish Sea, are fighting for survival. There are only 81 of them left. The three pods, the bread-andbutter of the whale-watching industry, were listed as endangered in Canada in 2003 under the Species at Risk Act, and, in the U.S., they joined the endangered list in 2005.

It is a serious concern for anyone interested in marine issues, says Mark Malleson, senior skipper with Prince of Whales Whale Watching, and a contract research assistant with Fisheries and Oceans Canada and the Center for Whale Research in Friday Harbour, Washington.

“They are an indicator species and, when we

“People come from halfway around the world just to go whale watching. It’s a powerful experience and, for a lot of people, it’s on their bucket list.”

— Brett Soberg, captain and co-owner, Eagle Wing Tours

see they are not doing well, it’s a reality check on what is happening in the rest of the ocean,” Malleson says.

There is also the emotional issue.

Although, in some ways, the marinemammal-eating transients put on a better show of nature in the raw as they hunt and kill seals, sea lions and porpoises, and the humpbacks put on a magnificent display, most people want to see the southern residents, according to Soberg.

“It’s a unique population. For us, it’s like family, not just these big, black and white whales. There are emotions and history and language. People can relate to the family ties,” he says.

Past Ignorance, Current Issues The southern residents’ man-made problems began with whaling, which continued in B.C. into the 1960s, and progressed to the nowinfamous live captures for aquariums in the 1960s and 1970s, which removed or killed 47 animals and reduced the population to 67 from an estimated historical population of 200.

Recovery strategies on both sides of the border have identified shrinking supplies of Chinook salmon, vessel noise, pollution and chemical contamination as the main culprits, but, for years, population numbers in J, K and L pods have continued to hover around the high 70s or low 80s, figures that many scientists do not believe are sustainable.

After a drop to 77 animals following the

death of a pregnant female in December 2014, hopes rose slightly with a mini baby-boom that saw four calves born over this winter and spring. But it’s too early for optimism as, although all four calves are currently healthy, about 50 per cent of orca babies die during the first year. The births must also be considered in the context of whales lost. During the last two years, eight members of the southern resident pods have died.

According to Ken Balcomb, executive director of the Center for Whale Research, there needs to be at least four surviving calves a year to start rebuilding the population.

“We are losing the whales,” says Balcomb, who is adamant that the Canadian and U.S. governments must curtail the Chinook harvest if the southern residents are to be given a chance.

However, Prince of Whales owner Alan McGillivray is more optimistic and believes that the family structure of the pods is changing and that more calves may be on the way.

Scientists at a recent symposium noted that there are 16 females of reproductive age and, if each had a baby every couple of years, there could be eight calves a year.

“I think numbers are lower than anyone would like, but I am optimistic that, as these reproductive-age females start socializing with a whole bunch of eligible bachelors out there we could witness a baby boom,” McGillivray speculates.

Some dominant males died recently and it is possible that they were beyond their

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Mandy Farmer, CEO of Accent Inns, often watches hotel visitors having their photos taken beside the Inn’s killer whale statue in the courtyard. She knows the ocean and its inhabitants draw many visitors to Victoria.

“The fact that we have got marine animals that pretty much play in our backyard is huge for Victoria,” she says.

Farmer, who has lived beside the ocean all her life, is watching the proliferation of tankers and other marine traffic with concern.

“I think a lot of us take it for granted that we have a whole, diverse ecosystem right at our feet,” she adds. “We just hop in our cars and don’t give it much thought. There are so many things that we, as a community could be doing to promote the health of the Strait.”

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reproductive years, so their deaths could open the way for younger males, he conjectured.

Effects of Overfishing While protecting critical habitat, reducing contaminants, restricting military sonar operations and keeping vessel noise levels to a minimum are important, there is general agreement that increasing the food supply is vital if the southern residents are to survive.

That would likely mean curtailing fishing on Chinook — the salmon that makes up more than 70 per cent of the southern residents’ diet — and possibly removing dams in areas such as the Snake River to increase Chinook spawning areas. The Snake River has four dams without

Chinook salmon make up more than of the southern residents’ diet.

“Overfishing the Chinook stocks is a problem,” says Malleson, who would like to see Chinook allocated specifically for the whales.

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fish ladders in its lower reaches and removing the dams would increase access to about 9,000 kilometres of rivers and streams that could again become Chinook spawning grounds.

Overfishing the Chinook stocks is a problem, says Malleson, who would like to see Chinook allocated specifically for the whales. He says the public is ready for such a move, but the federal government does not seem ready to act.

“We need to give them food — lots of it,” Soberg says categorically. “Without food, animals don’t do well. It doesn’t matter if you are a gerbil or a bird or a whale.”

A Fisheries and Oceans study released in 2010 estimated that, during the two peak summer months, the southern residents would require between 1,200 and 1,400 Chinook a day to meet their nutritional requirements.

Promoting Change Fears that the whales are slowly starving were exacerbated by the December death of 18-year-old J32, known as Rhapsody, a death made more tragic as she was at the beginning of her reproductive years. After the body of the pregnant whale washed up near Nanaimo a necropsy found that, although she probably died from an infection after being unable to expel the body of the full-term fetus, her blubber-layer was thin, indicating that she had been malnourished for an extended period.

Whales that have not been eating adequately start metabolizing fat that carries toxins such as PCBs and that could affect fetus development.

Some Victoria whale-watching companies are doing what they can to promote programs that will increase Chinook populations.

Eagle Wing donates a minimum of one per cent of its annual gross revenue to projects designed to educate people about salmon or enhance fish habitat. Last year, the company introduced a $2 mandatory wildlife fee for all customers. One dollar from each wildlife fee goes to the Pacific Salmon Foundation’s Salish Sea Salmon Recovery Project, focusing on salmon-bearing stream habitats in the Strait of Georgia and Juan de Fuca Strait, and one dollar to the Center for Whale Research.

Instead of driving customers away, it has increased business as people want to feel they are taking action, and other companies are now starting to look at the concept, Soberg says.

This year, Prince of Whales started collecting a $2 conservation fee, which is going to salmon enhancement and killer whale research.

Most whale-watching operators worry about the health of the ocean and McGillivray wonders why, if the federal government’s aim is to boost salmon production, Fisheries and Oceans continues to allow a herring fishery.

“Almost every credible scientist points to the need for as many salmon as possible. Chinook

love herring and here we are having a herring fishery which I don’t think benefits North Americans very much at all,” he says.

“We have to start at the grassroots of the ecosystem. If we are trying to boost salmon, why not let the herring do their thing?”

With increasing numbers of tankers and cargo ships plying the Salish Sea, and the prospect of the Strait of Georgia and Juan de Fuca Strait becoming more crowded as pipeline, coal and other development projects wend their way through the system, noise, which prevents whales from echo-locating prey is an increasing concern.

Whale-watching companies have come in for criticism about boat noise and crowding the whales, but Harris says members of the Pacific Whale Watch Association have made tremendous behaviour changes and are leading the way in finding environmentally sound ways to get more people out on the water. Companies have merged with many buying bigger boats, resulting in fewer disturbances, and some companies have now invested in propellers that are partially above the water and have “zero acoustic input,” Harris says.

“Some of it is happening out of sheer good deeds and sometimes it’s out of fear that they are going to get regulated. It also makes good financial sense,” he says.

The whale-watching fleet consists of about 80 boats, but, with staggered departure times and most companies not using all their boats at the same time, there are usually no more than 16 boats near the whales at any given time, Harris and McGillivray emphasize.

Regulations in the U.S. say that boats must be 200 yards (183 metres) away from whales while, confusingly, on the Canadian side of the invisible border that runs through Juan de Fuca Strait, boats are required to keep 100 metres away from the whales.

Whichever side of the border, the whalewatching industry has developed best practices to ensure the least disturbance for the whales. Last year, there was only one minor citation, compared to about 20 reported violations four years ago, says Harris.

“Everyone has really cleaned up their act.

Good, green wildlife viewing is good business.

It makes money because people come back.”

Bourree agrees that it is essential for companies to be environmentally sustainable if they are to stay in business.

“Some companies are better than others, but it’s a critical part of our tourism ecosystem. Conservation is mandatory,” he says.

Soberg is in total agreement. “The ocean is like blood that flows through our veins. If we don’t care for the ocean,” he says, “we’re not going to have a whole heck of a lot left.” ■

excited tourists wearing puffy red or orange survival suits waddling awkwardly towards moored Zodiacs, or checking raingear and binoculars as they are herded onto larger vessels.

Whale watching is among the most popular and lucrative southern Vancouver Island tourist

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Douglas 57

INTEL

[business intelligence ]

58 Entrepreneurship The Bottom Line Needs Your Attention

59 Digital Life Digital Leadership

61 Money The Rewards of RESP’s 64 Sales and Marketing How Much is Your Reputation Worth?

Rene Gauthier, co-founder of Sitka, with Bandit the dog.

Entrepreneurship by Peter Elkins

The Bottom Line Needs Your Attention Consumers, especially the massive millennial generation, increasingly want to do business with brands whose bottom line places value on people and the planet as much profit.

‘‘M

illennials are poised to reshape the economy; their unique experiences and awareness of people and planet will change the way we buy and sell, forcing companies to examine how they do business for decades to come.”

Those are the words of Rene Gauthier, co-owner and CEO of Sitka. After talking with Rene, I was left thinking that other CEOs need to take note if they want to stay relevant to millennials, because one of the largest generational groups in history — those born from 1980

58 Douglas

to the early 2000s — is about to move into its prime spending years.

Authentic at the Core If you don’t know Sitka, they’re a Vancouver Islandbased wilderness “activism” company that makes and sells purposeful and sustainable goods, from clothing to backpacks, for exploring and enjoying the natural world. If you do know Sitka, you know they connect with millennials like no other Canadian brand, and they

By voluntarily meeting higher standards of transparency, accountability and performance, B Corps look to distinguish themselves by embracing a better way to do business.

Learn how to get certified at bcorporation.net

B Corps make it seem effortless. Their commitment to their values is so deep that last year they launched the Sitka Society for Conservation (SSC), a non-profit that allows the company to directly fund environmental initiatives such as a hydrophone network in the Great Bear Sea. I asked Rene to share a few key ideas he’s learned over the past few years of building the Sitka brand, which now has stores in Victoria, Vancouver and Auckland, and online sales.

“You need to care authentically,” he told me. “Be transparent and vulnerable. Empower your customers to be the company, and be patient because building a community of millennials takes time and dedication.”

When you consider Sitka’s extreme brand loyalty and growth rate, you have to assume Rene and his business partner Andrew Paine have tapped into something the rest of us need to understand — and quickly.

People, Planet, Profit Sitka and other forward-thinking companies like the Inn at Laurel Point have adopted a blended-value methodology to measure their business success. Blended value is where the triple bottom-line (people, planet, profit) is baked into a company’s corporate governance and communicated through its vision, mission and values. An example of this is the commitment the Inn at Laurel Point made to our community by becoming the first carbon-neutral hotel in British Columbia, which I am sure the staff are very proud to mention when others ask them about where they work.

Companies that have implemented this blended-value methodology are reaping the rewards, both internally and externally, especially when it comes to attracting and retaining employees whose values are aligned, not to mention strengthening relationships with conscious consumers who allow their values to influence their spending decision.

The “B Lab” Badge An exciting addition to the business world is a global organization called B Lab out of Pennsylvania that helps companies by offering a consumer-facing audit process called B Impact Assessment. This assessment is similar to how the Green Building Council certifies LEED buildings, but B Impact applies to an entire company, not just the building. The resulting certification is referred to as a B Corp certification.

Local company Enrollment Resources, owned by Gregg Meiklejohn and Shane Sparks, was the world’s first education marketing company to become a B Corp.

What’s interesting to me about B Corp certification is that it is consumer facing, which can be displayed as a badge of honour, to let your customers know you’re as concerned as they are with the blended-value bottom line, and you’re prepared to put your money where your mouth is, so to speak, and prove it through an audit/certification process.

Doing the Right Thing A great example of a B Corp company, in my opinion, is Patagonia, the outdoor lifestyle company based in California. What I find remarkable about Patagonia is they continue to influence an entire industry by simply doing the right thing based on their personal values. These values continue to be reflected in their brand story year after year.

The influence of Patagonia is everywhere. Anyone working with the blended bottom line stands on the shoulders of business leaders such as Patagonia’s founder Yvon Chouinard.

improve the quality of life in their communities

68%

are more likely to donate at least 10% of profits to charity

47% are more likely to use on-site renewable energy

18%

are more likely to use suppliers from lowincome communities Source: bcorporation.net

It’s also really worth paying attention to the millenials who are just becoming CEOs, including Hootsuite’s Ryan Holmes who just announced that Hootsuite is becoming B-Corp certified. This indicates to me that B Corp is starting to move deeper into the business community, and companies who truly want to express their values through their brand story will drive this forward.

Another interesting B Corp in Canada is the Business Development Bank of Canada (BDC), which realized that, while it’s important to care, it’s also important to let your clients know your values. A consumer-facing audit like B Impact Assessment takes it up a notch and lets clients know your company means what it says when it comes to caring about business and community.

Ramp Up to Remain Relevant I believe that, as we depart the old economy, it is leaders who adopt the blended-value methodology who will remain relevant to millennials, and becoming B-Corp certified is a great first step in my opinion.

The question I will leave you with is: what is stopping Vancouver Island from becoming the B-Corp capital of the world?

Peter Elkins is co-founder of the Capital Investment Network and Kick Accelerator. He is passionate about driving Vancouver Island’s entrepreneurial economy.

Digital Life by david alexander

Digital Leadership: Do You Have the Skills for a New Era? A few years ago, the world shifted. Analog gave a cough, fell to its knees and let digital race ahead. How we function in the world has changed ever since.

O

nce, we lived in a strictly analog world where images, words and sounds were captured and stored on tangible things like cassette tapes or movie reels. Today, our world is dominated by digital, which means we convert information into 0s and 1s before we store it or display it.

But digital is so much more than those 0s and 1s. It is how we communicate, bank, shop, work and entertain ourselves. It is how we connect with suppliers and how we open up new markets. And it is rapidly changing the nature of jobs. Just look at the drastic rise in the number of chief digital officers (CDO), the successor to the once-heralded chief information officer (CIO). It will take a fresh suite of skills — digital leadership skills — to navigate these new waters.

This timely read helps leaders to adapt to the demands and opportunities of the digital age, and to build the skills and confidence to transform their leadership and organizations.

(Wharton Digital Press)

What Kind of Digital are You? There are two types of digital workers: digital natives and digital immigrants.

A digital native was born after 1980, when the first social-digital technologies came into use. Think Usenet and bulletin boards. A digital native grew up with technology; they often intrinsically “get” them, knowing no other way.

Douglas 59

Digital immigrants, however, are newer to the digital game; they were born pre-1980 in an analog world of clocks with hands and phones with dials.

They are less familiar with the digital, growing up in a time without email or Facebook.

But here’s a caution: to say that one group gets technology and the other doesn’t is a gross generalization — some digital immigrants are the enthusiastic first adopters who pioneer new technologies while some digital natives are Luddites who feel no affinity for the digital technology embraced by their peers.

Whether native or immigrant in the digital world, managers these days need more than just traditional leadership skills to inspire their teams. The world of work has and will continue to change, and employees come to the workplace with a whole new set of understandings and expectations. Managing these expectations takes digital leadership.

Here to Stay, for Now Digital isn’t going away anytime soon and it will continue to have a large impact on workplaces, teams, processes and how businesses are run.

Thinking digitally, embracing it and understanding it is an essential skill for today’s — and tomorrow’s — managers to achieve digital leadership.

David Alexander manages Digital at the Royal BC Museum and has a keen interest in technology trends that affect our business and lives.

9 1

Success Strategies to becoming a

digital leader 3

Strive for digital fluency

The digital world is rapidly becoming integrated into all aspects of the workplace. A familiarity with new technologies allows managers to embrace and understand the digital and integrate that thinking into day-to-day decisions and planning. Just because your kid is using a new product on their phone doesn’t mean it is terrible. Your employees and customers may also be using these same technologies and understanding them gives you an advantage.

2

Collect new digital competencies

Digital leaders don’t just understand what’s happening online — they seek proficiency.

So encourage your team to wire their brains to today’s technology (this goes for you too), then look at how it will impact your business and plan accordingly.

Experiment often

Embrace the loss of control new digital technologies bring, try out a new process made efficient by an online tool or mobile app — spend time in the digital world and allow yourself to play.

4

Collaborate

5

Understand Data Mining

Many new digital technologies are built for collaboration, so embrace that foundation and use it to create new connections or partnerships — or just to understand what others are doing in your sector, across town or across the world.

The data coming from new technologies is gold. Look at new ways to use that data, perhaps to better understand your business or customers, or to research which new products to offer or markets to explore.

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6

Be a Team Player

7

Learn Continuously

8

Search for New Ideas

9

Change fast

Today’s employees, especially those in the tech field, have fewer boundaries about work hours.

Working 9 to 5 in the cubicle is definitely not the way things are progressing. The office of the future allows flexible work schedules, alternative work locations and fosters employees’ experimentation with digital technologies.

The beauty — or curse — of the digital world is that once you think you’ve got it, it changes. Expect a constant learning curve and embrace it.

Being open to opportunities and ideas is not enough. Actively search for those ideas that will transform your business. They may not come from the traditional sources; in fact, they probably won’t, so take a risk and start broadening your field of view.

Think of yourself as an explorer in a vast and exciting territory.

Digital changes. Rapidly. And the business models that follow digital are all about being nimble, whether that means adapting to changing market conditions, fluctuating customer demands or a new market push by a competitor. Move swiftly, fail fast, change strategy, try again and bingo — it works.

Money by steve bokor

The Rewards of RESPs: The Good Gets Better The benefits of Registered Education Savings Plans have become so big, our financial expert wonders: “Why wouldn’t you do this?”

I

f you are a parent or grandparent with school-age children and have not set up a Registered Educational Savings Plan (RESP), you are letting free money slip through your family’s finger tips. What’s more, since 2006, the benefits for families with young children have become even better. So don’t delay because once the offspring turn 17 it’s too late.

Now, I know what you are probably thinking: governments never give anything away for free — there has to be a catch. Well, I’ve looked at it from just about every angle and the only drawback occurs if you contribute in excess of $50,000 per beneficiary. In fact, to make it easier to understand the features and benefits, the Government of Canada has created some great brochures and a learning centre to boot.

Douglas 61

You can access information from either the Service Canada or CRA websites.

However, what works in theory does not always work in practice. The promoters of some plans have restrictions placed on both contributions and withdrawals so do make sure the plan you choose works for you and your family.

Recently, I went to Service Canada’s website and the allure was so great I thought about having more children. Fortunately my teenage son entered the room, drank all but the last sip of milk in the house, replaced the near-empty jug in the fridge and walked out taking the desire for more offspring with him. But I digress. The simple truth is parents need to take advantage of this investment structure before the government changes its mind.

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Learning the Basics An RESP is an educational savings plan registered with the Canada Revenue Agency. It’s an investment vehicle that allows Canadians to save funds for the post-secondary education of their direct decendents (children and grandchildren). In 1998, the federal government launched incentive programs that not only allowed funds to grow tax free inside the RESP, but also provided free grants of 20 per cent (up to $400 per year) per eligible child. Contribution limits for grants were $2,000 per year and maximum lifetime contributions were $42,000.

For those families with uncertain cash-flows, the government allowed families to contribute up to $4,000 every other year and still receive grants, but certain conditions apply.

In 2006, things got even better. The maximum lifetime contribution rose to $50,000 and the eligible annual contribution limits increased to $2,500 per year, which means the annual grant rises to $500 per year. The new total maximum grant is $7,200.

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▼

20%

to an annual maximum of $500 per year, up to a lifetime maximum of

$7,200

But wait, there’s more. In 2003, the government initiated a second grant called the Canada Learning Bond and it’s free for the asking. Qualifying families may receive $500 when they apply — and $100 per year until age 15. This gives you an additional $2,000 just for filling out an application and submitting it to a qualified financial institution.

How It All Works You, the “subscriber,” open up an individual plan for a single beneficiary (child) or a family plan for

multiple beneficiaries (two or more children) with an authorized promoter (financial institution).

Note that you must obtain a social insurance number for the child. RESP plans typically last for a maximum of 36 years so if your child is reluctant to attend post-secondary education, there is some leeway.

You make cash contributions to the plan and then government grants are deposited to the same plan. Generally speaking, the basic educational grant (20 per cent of the contribution subject to annual limits) is

Starting Early pays off Age of Child at Contribution

Annual Contribution

Total Government Grants

Accumulated Income at age 18 (assuming annual rate of return of 4.60%)

Newborn (0)

$2,500

$7,200

$95,528

6 Years Old

$2,500

$7,200

$57,539

13 Years Old

$2,500

$3,250

$20,495

Based on a Median Annual Family Income in B.C. of $71,660 (Statistics Canada 2012)

automatically credited to the plan. However, the Canada Learning Bond and any Provincial Savings grants must be applied for separately and there are mean income tests to qualify for the additional funds.

The Process In 2004, I opened up an RESP with a mutual fund company for my son and deposited $4,000.

I then used the funds along with the grants to buy several mutual funds. Over the past 10 years, I have made fairly regular contributions and watched the plan grow to a sizable amount In a couple of years, with luck, my son will attend a qualifying post-secondary educational institution and not have to worry about the cost of his schooling.

Now, here’s the best part. Once my son attends school on a full-time basis, I can withdraw all of my RESP contributions without penalty and use those funds to further his educational achievements or transfer those funds to a Tax-Free Savings Account or Spousal RRSP. The grants, plus the growth inside the RESP, will be considered income for tax purposes for my son by Revenue Canada. (OK, I lied — the government gets its cut in the end but it is at my son’s low tax rate, not mine.)

Steve Bokor, CFA, is a licensed portfolio manager with PI Financial Corp, a member of CIPF.

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Vancity helped the Nature Conservancy of Canada reduce its overhead by refinancing its mortgage for building, renovations and leasehold improvements.

Community involvement initiatives like this can help a company boost its reputation capital.

Hamid Attie/vancity

be very valuable. Of course, the reverse is also true, which is why smart organizations work hard to build their credibility assets.

Vancity is a credit union with a long-standing reputation for supporting local community initiatives and being a good employer. It was recently voted one of Canada’s Greenest Employers for 2015 by Canada’s Top 100 Employers project.

How many people, I wonder, bank with Vancity because of its reputation value? I’d guess quite a few.

sales and marketing by mike wicks

How Much Is Your Reputation Worth?

I came across the term ‘reputation capital’ the other day while listening to a TedTalk called “The Currency of the New Economy is Trust” by Rachel Botsman. In her talk, Botsman discusses the increasing importance of trust in the area of collaborative consumption. By collaborative consumption, she means services such as Uber that connects riders to drivers (not professional cabbies) through an app, or Airbnb where individuals can rent a room from a stranger.

These systems can only flourish if they can build trust and develop a solid reputation, one client at a time. If the services don’t deliver, people stop using them. But, if they can sock away ‘trust’ credits like assets, they can build their reputation capital and succeed. In a nutshell, reputation capital is the quantitative measure of the value of a person’s or organization’s reputation.

“In the 20th century,” Botsman says, “the invention of traditional credit transformed our consumer system, and in many ways controlled who had access to what. In the 21st century, new trust networks, and the reputation capital they generate, will reinvent the way we think about wealth, markets, power and personal identity, in ways we can’t yet even imagine.” building your asset We as individuals, and our companies as entities, have reputations, good, bad or indifferent. I put a lot of stock in the value of my reputation and have worked hard over the 22 years I have lived in Victoria to build it and protect it. I work at maintaining and strengthening it with every new project. The term reputation capital resonates 64 Douglas

with me and I think of it as an asset on my balance sheet.

If that seems a bit of a stretch, think of the value of goodwill. I mean, accountants have an equation that allows them to put a monetary value on it when valuing a business for sale.

Reputation is no different; it is an intangible but very real asset to a company.

Still unconvinced? Consider Goldman Sachs and AIG, financial institutions that were brought to their knees by the global financial crisis. They saw their reputation capital plunge into negative territory and their profits take a nosedive. Rebuilding that trust (and profits) will take time. According to a 2015 Harris Interactive report on the reputations of the 100 most visible companies, these companies are still ranked at 100 and 99 on the list.

The bottom line is, credibility has an asset worth in a company — it’s valuable. In fact, it can

53%

36%

Your Reputation Value Now consider the value of your reputation — how much is it worth to your company, or to you personally? Carry out a strengths, weaknesses, opportunities and threats (SWOT) analysis on your reputation and look strategically at how you can approve its asset worth.

How do your customers view you? What do they value most about their relationship with your firm? I was working with a financial advisor who believed his reputation value had dropped over the last few years. In the past, people had viewed him as a community leader because he was active on boards and attended community events. Then, for several reasons, he had to step back from a lot of these activities. As a result, he saw a significant drop in revenues. His reputation as such wasn’t damaged, but his reputation capital had dwindled.

I know a young person who was on the fast track to being a top executive; she sat on several boards and was doing everything right. Her reputation was building, but then she started posting doubtful material on her Facebook account — nothing terrible, but jokes and sayings that included bad language, and contentious material relating to politics, religion, etc.

She had every right to express her views, but

88%

of the general public proactively try to learn more about the companies they do business with

of the general public decided to not do business with a company because of something learned about how the company conducts itself

of the online shoppers who read reviews will take them as seriously as if it were a personal recommendation or criticism

Source: Harris Interactive

Source: Harris Interactive

Source: BrightLocal

72%

of consumers say that positive online reviews make them trust a local business more Source: BrightLocal

Reputation is an intangible but very real asset to a company. some of her business acquaintances were also her Facebook ‘friends’ and many were offended, including me. Her reputation capital took quite a hit and it will be some time before she will be able to rebuild it. One also has to consider how future potential employers might feel when they do some basic digging into her ‘reputation.’

Building And Managing Your Reputation Capital Consider what aspects of your daily business life might affect your reputation capital account, either positively or negatively. Some of this is obvious, such as paying suppliers on time, providing excellent customer service, delivering on time, being ethical in every aspect of your operation, being environmentally aware and personally giving back to your community.

Other aspects are less obvious. For example, guilt by association — you and your company may be actively building and maintaining your reputation, but what about individual employees, business partners or suppliers who may be carrying out activities that, if connected to you in any way, could affect the way people view your company?

Something else to consider: we live in a time when consumers can review any product or service online, quickly and easily. They can also actively attack you or your company even if you are completely blameless. Social media is both a blessing and a curse when it comes to your reputation so you need to be constantly aware of what people are saying about you online — and also what your employees are saying about your company and what it’s like to work for you.

There are no secrets anymore, but forewarned is forearmed; ensure you are aware of what is being said about your company across all social media and be prepared to carry out damage limitation. Admit when you are wrong and put things right quickly, efficiently and to the complete satisfaction of the customer.

Reputation capital is about you and your judgement, knowledge and behaviours. It is largely contextual but generally based on skill level, trustworthiness and reliability. Simply being aware of the fact that everything you and your company does will affect your reputation for good or bad is going to help you build a significant, albeit intangible, capital asset.

And remember, as my friend and mentor Ken Stratford said to me, “Victoria is a very small town. You can spend your reputation capital in a few days if you act unwisely.”

Mike Wicks is an award-winning author, blogger ghostwriter and publisher. He is president of Blue Beetle Creative Media.

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Viberg produces between 30 and 40 pairs of boots and lifestyle shoes a day in their Boleskine Road facility. They sell online and to independent boutiques in 23 countries.

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