Your source for business and chamber news in the Greater Kingston Area JUNE 24, 2013
Vol. 2 NO. 6
Can you dig it? Businesses look forward to Princess Street’s improved image They say Kingston has two seasons – winter and road construction. This year, both seasons arrived at the same time when the city decided to begin the next phase of the Princess Street reconstruction while the snow was still flying. Launched in late February, the socalled Big Dig 2 saw two blocks of the downtown’s main street ripped up from sidewalk-to-sidewalk with a promise to complete the bulk of the $7 million project in just one construction season. This fast-track strategy was a departure from the two years it took to redo the pipes and pavement on lower Princess Street during the Big Dig’s first phase in 2010. “It’s a tight timeline,� remarked Jim Keech, president of Utilities Kingston who also serves double-duty as the city’s public works commissioner. “The decision was made to condense the significant disruptive work into one year.� It was a gamble from the outset, trying to do more construction work over a shorter time frame, but the Canada Day finish line is in sight. Workers had just four months to dig up Princess Street, between King and Bagot Streets, to install new water lines, separate the sewage and storm pipes - replacing a century-old stone box sewer – plus resurface the road and sidewalks with granite curbs and planters. “All the merchants and restaurants in this area, we’ve all been affected by it,� said Gary Lockwood, manager of AOne Clothing store at Princess and King Streets. By many accounts, it has been a disruptive time for merchants, motorists and pedestrians caught in the middle of construction activity that not only enveloped two tightly-packed blocks of Princess Street, but the cross streets of King, Wellington and Bagot Streets as well. The city and contractor made it their mission to minimize the construction disruption; maintaining pedestrian access to busi-
nesses at all times, regular road closure announcements, closing only one intersection at a time, accommodating delivery trucks, plus daily, even hourly, consultations with restaurants and retailers. “We are going to spend a lot of time going door to door talking to merchants about milestones of the project,� promised Dan Corcoran of Corcoran Excavating Ltd. the project’s lead contractor. Corcoran says the importance of communicating with affected businesses was an important lesson learned when his company did the first phase of the Big Dig, the project’s catchphrase that was first coined to describe the construction of Boston’s underground highway in the 1990s. The contractor’s efforts have not gone unnoticed. “They are doing everything humanly possible to keep traffic flowing for us. It’s not their fault. The job’s got to be done for the betterment of the downtown,� observed Lockwood. Still, there’s a sense among many business owners caught in the Big Dig crosshairs that City Hall could and should do more to help them. Lockwood helped launch a petition signed by 51 businesses owners seeking a tax deferral in 2013 and 2014 to give them time for sales to rebound. Some businesses have seen their sales fall by as much as two-thirds during the construction – a financial burden that some might never recover from, he said. “With the construction people automatically assumed if it was bad before it’s going to be worse now,� explained Lockwood. The petition’s request has not been decided by council at this time, but Mayor Mark Gerretsen is worried a tax break could lead to similar requests in other parts of Kingston. “If you do it for one where does it end?� he wondered. The mayor reminded struggling businesses and others of the benefits of replacing aging infrastructure. “What’s the alternative? If we didn’t do anything
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their water might not work tomorrow or their sewers might not work when they go to flush the toilets. So at the end of the day we have an obligation to provide these services to them.� Maria Cronk, co-owner of Roundstone and Fancy That, a 28 year clothing store fixture of the downtown, has another theory why business is down. “It’s easy and obvious to blame the construction,� she observed. But the fact it’s been a wet spring has changed people’s attitudes about being outdoors or coming downtown, she explained, adding the initial Big Dig work coincided with much nicer weather. “This time around the cool and wet weather has brought less patience for people. The construction area is also more confined and the construction barricades keeping changing how and
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where you walk.� Cronk says her business has not suffered as much as others, but she also signed the tax break petition as a show of support for those who say they are struggling in the construction zone. Monica Brown, owner of The Rocking Horse on Princess Street, located just outside the Big Dig zone, is also trying to remain positive. “The best you can do is embrace it.� She, too, is looking forward to the underground and streetscape improvements, and will be ready when the Big Dig 3 moves up Princess Street, from Bagot to Montreal Streets, around 2015 to encompass her storefront. “I plan to set up a sandbox window display for kids (of customers) to come in and play with construction toys, while they see the real work going on out front.�
Most agree Princess Street needs a facelift, above and below ground, and the city’s work will bring long-term benefits to water and sewage services, plus the beautification of streets and sidewalks. While construction crews are scheduled to reopen Princess Street to vehicle traffic by July 1, just as tourism season begins, digging activity on the cross streets – Wellington Street (Princess to Brock) and Bagot Street (Brock to Queen) will continue this season and next. The downtown is also planning activities to get shoppers to check out the stores and infrastructure improvements with a merchants’ sidewalk sale July 4 to 7, and turning Princess Street into a pedestrian-only zone for the Princess Street Promenade August 3.
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Welcome to our New Members: Renewing Members: Renewing Members: Action Flooring Kingston Advocis - Kingston Chapter All Risks Insurance Brokers Ltd. Attention Getters Aunt Lucy’s Dinner House Aureus Solutions Inc. B&G Stewart Enterprises Inc. Baldwin Audio-Visual Rentals/Baldwin Presentation Systems Belfor Restoration Services Bendale Property Management BMO Nesbitt Burns Brunet Heating & Air Conditioning Cataraqui Archaeological Research Foundation Clayton Flooring Inc. Cobico Jewellers Ltd. Co-Operators Insurance, Mary Quist & Associates Ltd.
Cornerstone Wealth Planning Inc. Drain-All Ltd., Kingston Branch Eikon Device Inc. Frank’s Worldwide Moving Gananoque Inn & Spa Golf Town Kingston Heart & Mind Careers Helical Pier Systems Ltd. Hicks Morley Hamilton Stewart Storie LLP Hopkins, Cormier & Chitty Surveying Consultants Inc. In Bloom Investors Group Financial Services Inc. Jennifer Baker Consulting Kingston Construction Association Kingston Expert Tees Kingston Foot & Ankle Clinic & Orthotic Centre Leslie M. Higginson Surveying Ltd.
Membership Renewals Payments May 13 - 17th MetalCraft Marine Micro Market Business Centre Mundell’s, Mike Surf & Turf Stores Ltd. NEBS PAYweb.ca Olivea Rexall Pharmacies Rodger James Financial Services Rosemount Inn & Spa RS Multimedia Sea Venture Business Centre Sheppard, Ted Insurance Agency Ltd. Simplified Office Solutions SJR Systems Ltd. Stump, L.J. & Associates Inc. Taylor Auto Mall Wellington Acupuncture & Massage Wellington Foreign Exchange
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A message from the Chair By Donna Woodbury
At this mid-point in the year, it is always a good idea for businesses to take a step back and evaluate how they are doing, and measure their progress towards their annual goals to see if they are on the right track. At the Chamber, we are doing the same thing. At the beginning of each year, the Chamber Board sets the annual goals for the Chamber, intended to be the incremental gains made in that year against our overall five-year strategic plan. At the mid-point of this year, we can report some of the highlights of our goals and progress thus far. We are striving to add more value to our members over the course of the
year, and are investing in a new website that will increase traffic to our member directory, and offer greater promotional and advertising opportunities for members to raise awareness about their businesses with. The Chamber will have the RFP process for the new website completed by the end of June, and hope to launch by late September. We also continue to add new member benefits to the mix, including new discounts to business tools like Biddingo and Constant Contact, which was also a goal for 2013. Another of our goals this year was to examine an innovative new structure to how we charge for memberships, one that is more based on the value received by the member in how they use their
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Kingston Business Today - Monday, June 24, 2013
Chamber membership, rather than being based on the number of employees they have. The Board of the Chamber will be considering the final design of this new structure in July, and establish the timeline for its implementation. We want to continue to build our advocacy capabilities in 2013, as well as connect that work better with our members – get them involved, and keep them informed about how our efforts help them
in their businesses. We have involved groups of members to assist us in evaluating policy resolutions that we debate at the Ontario and Canadian Chamber annual policy debates, and have recently launched our Procurement Advisory Group comprised of heads of purchasing departments of the large government and institutional organizations in Kingston, and a number of local business owners who often compete for tenders and bids issued by these organizations. The goal is to create information and programs that will help local businesses win more RFP’s and tenders, and so we are excited that this group is underway. In 2013, we are also investing in the development of our people, including undertaking a professional develop-
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Technology
Cloud Services – Are they LastPass – password tool right for your business? Jeff Hewitt OnServe.ca
Many business owners are intrigued by the term “Cloud” when it comes to technology services and they wonder how using Cloud services can help their business. The Cloud is useful for businesses that need to have access to their data anywhere, such as people who are on the road, attending meetings, visiting clients, or working in remote locations. In all cases some sort of connectivity is required and this can be achieved through smartphones, tablets, laptops, or even public computers depending on the requirements. In its most simple form, we use the “Cloud” at home daily to retrieve email from our internet service providers. The Cloud is merely a service that is provided to you by hosting software on a remote server to which you have access. The security they provide is through some sort of a username and password, and in the case of email, it’s your name and a password you have created. In more complex cases, such as Microsoft Office 365, Microsoft provides an online version of their Office suite which allows you to create, store and retrieve documents such as Word, PowerPoint, and Excel which you can access from your desktop at home, office, or when on the road. Depending on the program you select, you have access to storage, instant messaging and video conferencing between co-workers. Their service also provides a hybrid solution which enables you to integrate mail into one solution which will connect into your exchange server at work so that mail sent from anywhere, through a browser, from home, on your smartphone or in the office, always displays exactly the
same, as read, unread, etc., no matter where you are accessing it from. Advantages to storing your information in the cloud in many cases can appear to be better than having to host this information onsite. You no longer need a server and software, you don’t need local support, don’t have to worry about backups, heating, cooling, power, space, security, etc. Everything appears wonderful until you factor in accessibility and availability. If you host all of your company data in the cloud, and have poor internet service, you will affect your ability to conduct business. There are ways around this such as having two internet connections available so that if one service provider loses service you can “fail over” to the second connection quickly. It is best to have one connection with a DSL provider, and the second with a Cable company to try and reduce the possibility of both service providers having problems at the same time. Of course not all businesses have the ability of choosing between service providers and sometimes there is only one option available. Having a second service in place also means that you will be doubling your monthly costs so you may want to consider if the value is still there as opposed to having server equipment onsite. In any case, before you make any decisions on whether to move to the Cloud, make sure that you speak with a knowledgeable partner so that you are sure that the choices you make are best for your needs.
By: Bill Hughes
One of the biggest challenges in using the Internet today is passwords. They need to be long, hard to guess, contain no words you would find in a dictionary, have numbers, special characters and the most difficult part: every login you have should have a different password. As a result, many people use weak passwords they can remember, write them down or store them in a “secret” spreadsheet on their computer -- none of these are secure or recommended. The tool I use to manage hundreds of passwords and secure notes is LastPass. It safely stores all your login information including passwords. You can also store secure notes with information like your credit card number. Everything is encrypted on your computer or mobile device before being synced to your other devices and being backed up in the cloud. It features a secure password generaJeff Hewitt is an IT Consultant at OnServe, tor and you can log in to your favourite accounts whose primary goal is to help clients make with just one click. Want to know how your passthe right decisions concerning their IT investments.
words stack up? LastPass will give your passwords a security score so you can know how well you are doing. You can also share login information without giving your password to someone. LastPass is not just for individuals, it has robust business accounts. You can manage your employee’s accounts, push login data for specific sites out to all your users, enforce security policies like password length, and LastPass can be synced to your Active Directory. Should an employee leave, you can revoke access to all the passwords and secure notes immediately. But best of all, no more Post-It notes on the sides of staffs’ monitors. To use LastPass, you download the free client from their website and create your password for the service. Once installed, LastPass watches for the signs of a login to a website and it will prompt you to save the login details like username and password. When you visit a website for which had previously stored the login information in LastPass, it will fill in the credentials so all you have to do is click the “submit” button. If you are like me, it won’t be long before you have tens or hundreds of logins and secure notes. There is no reason to not at least check out LastPass, the basic version is free. If you want to use LastPass on your mobile device, the Premium version is only US $1 per month. For businesses, the Enterprise version starts at $11.04 per user per year for 1 - 100 users and includes all the Premium features plus the account management tools that are so important to businesses. LastPass can be found at http://www.lastpass. com Bill is Managing Director of Weehooey Inc. a Kingston-based IT services company. Weehooey helps customers deploy modern cloud-based systems which dramatically decrease operating costs and increase productivity. You can contact Bill by email at bill.hughes@weehooey or call 613-3442068 x158.
Facebook Pages Versus Personal Timelines By: Jennifer Baker
Attention Business Owners: Do you know the difference between a Facebook Business Page and a Personal Timeline? Originally designed for individual use, Facebook personal Timelines allow users to maintain a presence on Facebook. The Facebook’s Terms of Service (TOS) designates that each person can possess only one account and its associated login information. Timelines allow users to maintain a personal profile, upload photos, add friends, “Like” pages, and Follow users of interest. These Timelines are for non-commercial use only and businesses operating under a personal Timeline are in violation of the Facebook TOS. Continued on page 4
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Technology
Facebook Pages Versus Personal Timelines Go Beyond Mobile Friendly, Go Responsive feeds, Pinterest accounts, eNewsletter sign-up forms, or event calendars. Facebook Pages alIf your business is maintaining a personal low businesses to share stories, post events, and Timeline for commerannounce sales. The cial use don’t worry, Greater Kingston Chamthe account can be ber of Commerce (fasafely converted into cebook.com/greaterka Page. ingstonchamber), for On the other hand, example, maintains an Facebook Pages alactive presence on their low the opportunity Page, frequently posting for businesses, brands, about upcoming events, celebrities, organizanew Chamber members, tions, and non-profits and pertinent business to manage a presence news. on the social media giWith over 1 billion ant. Pages are similar registered users, Faceto personal Timelines, book is a great avenue to but have increased connect with friends and features and functionclients. It is important, By Anna Robertson ality. Unlike personal however, to be aware Timelines, Pages can of the subtle differences Have you looked at the analytics for your webbe managed by single between personal Time- site lately? Chances are there are a growing numor multiple adminislines and Pages. ber of customers accessing your website from motrators (Admins), who bile devices or tablets. What are they seeing? can each possess unique Page privileges. Jennifer offers social media training semiUntil the recent past, websites were designed Pages also provide admins with key metrics nars, one-on-one personalized training, and for desktop computers with inflexible fixed-width and insights, including popular posts, num- corporate group training. Jennifer Baker layouts. If you own a smartphone, you know ber of visitors, and the age and demographics Consulting is located in Kingston and is a what it’s like to have to zoom in and out on a tiny of fans. Pages can be enhanced by applica- proud member of the Greater Kingston Cham- screen. Since wide screen monitors, tablets, and tions that have the ability to showcase Twitter ber of Commerce. smartphones all have greatly varying screen sizes, responsive layouts were developed to adapt the design of a website to fit all screen resolutions. Please check out our What is responsive? Responsive websites adjust to fit the screen size of your device. The content layout, image and text size, and visibility of elements change depending on whether you are viewing it on a large widescreen monitor or a small mobile phone. Web www. .ca developers do this by checking what the screen resolution of the browser is and applying different
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styles for a number of set ‘break points’. Because it’s impossible to account for the large diversity in screen resolution, break points are determined by the most popular device sizes- widescreen, desktop, tablet, and mobile. You can test if a website is responsive by dragging the corner of your browser window and resizing. Do the elements shrink or expand? Do new elements appear, or old elements morph, shift position, or disappear entirely? If so, you are likely viewing a responsive site. Who needs responsive? Every website should be usable on all platforms so that no user is left without the ability to access content. Responsive is just one way to accomplish this alongside mobile websites and apps. Responsive layouts have to be built from the ground up to account for the flexibility in content layout. This means that it’s a lot more complex and time consuming to make an existing website responsive versus creating a separate mobile site. For this reason, responsive is normally only on the table when a full redesign is necessary. There are, however, clear benefits to having a single website that can flexibly accommodate all device sizes. • So what are the benefits? • Search engine rankings – Google likes Responsive, receives better indexing. • More devices targeted – Tablets of all sizes, phones of all sizes. • Improved accessibility – Caters to users’ needs. • One site to maintain – less redundancy when updating content. • What’s the process? Because responsive is all about adjusting content and elements to fit different screens, the very first item on the agenda is content structure and hierarchy. What is the priority and end goal of the user? Continued on page 6
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Start With Trust The Better Business Bureau has had over 83,000,000 unique visiexisted since 1912 when some tors! Businesses apply to become like-minded and ethical business people got together and created an association dedicated to truth in advertising. Today, the BBB exists as a non-profit corporation, entirely and only funded by the annual dues of Accredited Businesses. The BBB serves Consumers, but Works for Business. Most consumers contact us to check a business via bbb.org. In 2011 we $JOEZ 4IFMMFZ ZPVS MPDBM ### SFQSFTFOUBUJWF
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The Better Business Bureau of South Eastern Ontario has had more than just a subtle impact on my company. They have indirectly changed how we work with our clients. Since 2002, we have used the BBB as one of our tools to help build confidence with the people we work for. Being part of the BBB organization creates confidence, and comfort for the home owners we work for.
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Technology Continued from page 4
What content supports that end goal? One way to help organize content is to start thinking about mobile first. The smallest screen sees the smallest amount of content therefore should only display the most important information. As the size increases, progressively enhance the content with longer text, larger images, sidebars, and widgets, which are less important and only added when space allows. When planning responsive content structure, wireframes are created for 3 or 4 different sizes to show the layout changes and where content moves. Once the content structure is complete, the website is built and styled with @media queries and other coding techniques which tell the browser what styles to use for what size window.
Creating a Local Website By: Dr Jay Adamsson
What to remember: • Content is key. Only the most important information is highlighted in the mobile version. • Progressive enhancement as the screen resolution increases. • Phone processors are slower. So include less animation and less complicated designs.Responsive websites are a great way to make sure your website is usable for all visitors. They’re also a lot of fun to design, because they allow for creative manipulation of space and content. The bottom line is that users appreciate a website that is clear and usable no matter which device they use to access it. For great examples of responsive websites, visit http://mediaqueri.es
Most business in the Kingston fit into the category of SMB - small to medium business. Of these, the vast majority service a local clientele. Although we do have a collection of businesses that focus solely on national or international markets, these are the exception rather than the rule in our part of the country. The typical Kingston area business either has a storefront where they receive customers, or provide service to a local area. Despite this character of business, most websites that I see are at odds with the business. A website has to reflect Anna Robertson is the Web Designer & the character, reality, and goals User Experience Specialist at 14 Theories of the underlying business, and Inc. a Web Design & Development firm this is not happening. Many of the websites I see are hybrids based in Kingston, Ontario.
that try to serve the local market, but also try to speak to the entire world. And they don’t work. When it comes to local business, your hybrid site will lose to your competitors that focus on the local market. When it comes to the wider world, your website will have just enough local elements to suggest that you shouldn’t be in the same league with worldwide competitors. I understand exactly why this happens. Businesses visit internet development companies, and are lured by the appeal of selling around the world, but don’t want to ignore the local clients. As a result, the hybrid website is proposed, which is guaranteed to finish in second place everywhere. And in the world of the internet, the difference between first and second is enormous, and can mean the difference between a successful business and a struggling business. Here are four important parts of a website for a local business. 1. Tell everyone where you are. Search engines give a high priority to local indicators for many searches. If you
want to perform well in the search engines, make sure you tell them over and over where you are located. Put it on every page. If you have a storefront, put that address on every page. If you service a certain area, put that on every page. Put your phone number on every page. Also, make sure you claim your business page on Google Plus Local (better known as Google Places). Much of the information you provide here to Google is used in their search results, and if there is one search company you want to make happy, it is Google. 2. Don’t forget mobile. Especially if you are in the tourism business, you want your website to work well on mobile devices. Every month, the usage of tablets and smartphones to access the internet is increasing. You want the potential client that is sitting in their car accessing your products on a small screen to see your information, and easily know how to get in touch with you and find your location. If your web-
site is not mobile friendly, you will get passed over in favour of your competitor. 3. Build links. One of the most important aspects of search engine lists is the number and type of links to your site. If your business is focused on local clients, get links to your site on every other local website you can. Look at websites for chambers of commerce, for your local community or neighbourhood, for complimentary businesses, and for local groups. Figure out how you can get a link on these sites, and go out and get it. It all goes into creating a strong local on-line profile, and positioning your website as an authority in your field and in your local area. 4. Measure your success. Make sure your website is set up to measure how well you are performing in local search, and act on what you find out. You want to be able to change your website to enhance what is working well, and to change what is not working well. But the only way to do that smartly
is to measure your success. And this is more than just counting visitors to your website. Make sure you know what activity on your website is valuable to your business. I see too many websites that try to be everything to everyone. And as a result, they almost always fail everyone. Too many small businesses harbour the dream of the “big score,� when they get the call out of the blue from some far distant land, and they suddenly move into the big leagues. Sorry to disappoint you, but the internet doesn’t work that way. Your hybrid site may give you a trickle of out-of-area orders, and it always feels good when suddenly you ship your product to California, Germany, or Japan. But in order to generate this minor activity, you are passing on a much larger local business. Dr Jay Adamsson is the owner of Analytic-OR (www. analytic-or.com), specializing in creating effective websites. Questions or comments can be directed to jay@analytic-or. com.
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The Kingston EMC - Monday, June 24, 2013
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BUSINESS
Why acquire an existing business? Contributed By: Lisa Ilan
plan and area of expertise.
Growing your business internally can be a high-risk strategy in a fastmoving business world. That’s why many entrepreneurs choose instead to acquire an existing firm. “This approach eliminates many of the headaches involved in getting a start-up off the ground, such as developing products, hiring the right people and building a sound customer base. It also gives entrepreneurs a jump on the start-up phase — a time when many new businesses fail,” says Lisa Ilan, Senior Manager, BDC Kingston. Often, it’s the only feasible way to break into a particular field, such as tourism or manufacturing, since start-up costs in these sectors can be prohibitive. There are distinct benefits when you buy a business that is already up and running. However, you may also be acquiring someone else’s problems. Here are some other key points to consider.
Look for the right fit Evaluate your skills, interests and experience. It’s much more difficult to succeed in a business you don’t like or in which you have no background. The business you buy has to mesh with what you do well, and with your personal and business philosophy. Choose familiar territory to reduce the risk of failure.
Here are some tips: Stay in the area you know Don’t fall into the trap of buying a particular business because it seems like a sure thing. Pick an industry you know intimately and look for a business in that industry that is for sale. Then evaluate it carefully. “Due diligence” is one of the most important aspects of a business acquisition. Think carefully about whether the business falls within the scope of your business
Evaluate the risks Determine through research whether this type of business has a solid chance of turning a profit. Certain types of businesses are riskier, more vulnerable to competition or prone to financial failure than others. None of this means you should automatically avoid such businesses. However, they do require an especially careful evaluation of the risks involved. Look for synergy If your goal is to acquire a firm to add to an existing business, you will need synergy in key areas. Its products or services should be related or complementary to what your existing business already sells, and marketing and sales methods should likewise be in harmony. Production and delivery methods should also be similar, and the merger or acquisition should result in improved cash flow with which to fuel additional business projects. You need assurance that you will have the
full cooperation of the new firm’s staff as they will be key to a successful integration of the two businesses. Look at the firm’s identity Every business has an image that has been built over time. Think carefully before you acquire a business with a tarnished image, as such perceptions can be hard to turn around. Conversely, a good reputation can be a critical asset. An Internet search can allow you to see what people are saying about the company. These opinions may not be representative but should still be taken into account. Ask yourself why the company is up for sale, and ask about its reputation and that of its current owner.
burdened with unnecessary debt. Hidden problems, such as losses, declining revenues or changes in the marketplace, may make the business less viable than it initially appears. If leases for facilities or equipment are about to expire, for example, price hikes may be in the offing. Determine whether the equipment is part of the sale. If so, what condition is it in and what is it worth? Is the building for sale as well? If it is rented, can you take over the lease, and under what conditions?
ing operations and facilities or going through financial statements. You also need to investigate the parts of the business that you can’t see physically by talking to employees and suppliers. Evaluating the business’s true worth, considering all tax implications and effectively negotiating the sale are also important steps.
Once you’ve begun your due diligence, don’t limit yourself to examin-
Consider the company’s culture You may meet resistance if you buy an established company with its own business culture, management style and relationships with vendors and partners, and then change the way things are done. It’s worth asking whether the seller has good relationships with employees and managers, and assessing the business culture, management style and the quality of work done by its employees. Evaluate the costs Financial records may not always reflect reality. You need to ensure that the price is in line with market conditions. Without due diligence, you can end up paying too much and be left
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FINANCE
Collection: Relief in the bullpen Dead Relationships SMEs are sales-driven in ideology It’s getting late in the non-payment and practice. If you don’t sell, you game: bottom of the 8th, darkness don’t survive in the business jungle. setting in, and your receivables pitch- Nevertheless, salesthink isn’t the beer has thrown her best stuff without all and end-all of customer relations. a cash-recovery lockdown. This one Some sales relationships die. Some isn’t in the “win� column yet. In fact, sales relationships ought to die. Proit’s looking a lot like a no-cash loss. tecting those pirates, hobblers and So now what? You need a reliever, a troublemakers that haunt our client fresh arm for the strike-zone. Lucky lists is the road to cash liability, not for those of us who supply goods and profitability. Sometimes we’ve just services on credit, there’s relief in the got to do what needs to be done; we’ve got to say goodnight. Fire the bullpen – the collection bullpen. client?? Absolutely! And with smile on our lips. Collection is that smilLimiting Salesthink It doesn’t happen often, and it ing, firing line. A reliable, credible collection agenshouldn’t happen often, but every once in a while, every supplier needs cy is an invaluable ally. Think of it as a reliable reliever to snag a long- an extension of the home-team’s bench overdue payment. Does sending an strength. An agency’s job is to manage uncooperative non-payer to collec- cash-recovery on a billing you’ve been tion go against the grain of conven- unable to wrangle alone. When you tional salesthink? Often it does. Yet assign an unpaid account to collection, the stark laws of commerce prove you’re turning to a trusted commercial that an invoice you can’t get paid in- companion to take over where you’ve house is either bad debt or cause for left off, apparently in defeat. Colleccoercion. And coercion means col- tion is the hardball zone of receivables management. It’s a difficult process lection. The day-to-day running of a re- to pretty-up. But as a supplier who’s ceivables-based business doesn’t facing a no-compensation scenario for have to be a bloodsport. But we’d goods or services already provided, it’s be kidding ourselves – and damag- important to remember who broke faith ing our companies’ interests to boot first. Who killed the supplier-customer – if we didn’t recognize that seeking relationship? Was it you? No, you met external remedy is a legitimate, nec- your targets as a vendor; you fulfilled essary solution to what would other- your contractual obligations. If the wise be a 100% write-off. Collec- relationship is lying face down in the tion isn’t always a slam-dunk debt alley, the killer won’t be found inside cure. But neither is failing to show your organization. It’s your difficult, up for the 9th inning with someone delinquent customer who’s pulled the throwing new stuff. If we’re deter- trigger. To paraphrase a pop song of the mined to protect our receivables and get paid, and if we’re not living in day: “Now you’re just a client that I paralyzing fear of our customers, used to know.� When all our efforts then we’ll be ready, willing and able to secure payment have failed to proto limit our sales biases and go the duce cooperation and cash, the nonpayer is no longer a “valued client�, distance. just a garden-variety debtor. This game-changing shift mandates a complementary swing in creditor RECEIVABLES attitude and action. The delinquent’s account is now a “vexed� and “doubtful� one. A well-managed enterprise
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will create a 100% reserve against the receivable and take the next step without flinching. To the woodshed! Doing Something vs. Nothing A vexed account already has one foot in the grave of bad debt. Since we’re on the hook for a 100% loss, any money the collection process can shake loose is cash-positive by definition. We’ll take it to the bank – and be grateful, too. After all, what’s the alternative? If we do nothing, if we allow a doubtful billing to languish on our aging report, growing a ZZ Top beard, then nothing will be our reward. A big, fat cash-nothing. How’s that beneficial to the bottom line? Unfortunately, not all woodshed endings are happy ones. Collection agencies can’t work miracles; they don’t spin gold out of junk. That’s the bad news. The good news? Using my A/R experience as an anecdotal measure, collectors are successful in recovering a portion of assigned value about 2/3 of the time. The remaining 1/3 is bona fide loss due to business failure, an untraceable debtor, a deficient papertrail, personal bankruptcy, a junkmeister who will not comply, even in the face of a court judgment – plus any number of oddball, outlier reasons that pop up mysteriously during the daily grind of commerce. Bad debt can always take you downtown – and when you least expect it, too! Maybe it’s a consequence of commerce in an imperfect world. It’s definitely not a reflection on collection agencies and their collectors. We give them sows’ ears and ask them to make silk purses with gold coins jangling in the lining. It’s a tough assignment; sometimes it’s mission-impossible. So put the fault on us, instead. That’s because most bad debt results from doing business with flawed companies and flawed individuals – and without the benefit of a credit management safety net. Lie down with dogs, they say, and wake up with fleas. In a future KBT segment, we’ll look at the kinds of files that can be offered to a collection house and how to determine which agency is the best fit for your needs.
Managing Your Money
“The Tangible Benefits of Financial Advice�
By: Lorne Matthews Glasspoole
For many Kingstonians, summer vacation provides the ideal opportunity to switch to a lower gear, get reacquainted with family and friends on a local lake or patio, and perhaps take some time to assess mid-year progress on personal or family goals. Arrival of June 30 financial investment statements will prompt some to ponder “what’s workingâ€? (and what isn’t), and no doubt many financial planning decisions – both good and bad – will be made while sitting around the pool, the deck, the dock, or the golf tee. In this age of limitless on-line financial advice, business television, investment blogs, etc., it’s understandable that some are inclined to compare the value of seeking out personal financial advice vs. simply going-it-alone in self-directed fashion. It seems, however, that the best way to achieve your personal financial and retirement goals is having access to sound financial advice grounded in a comprehensive financial plan, and here’s why: Among other things, financially advised households are twice as likely to save for retirement at all ages; have significantly higher levels of investable assets at all ages; improve their regular saving for retirement at all income levels; rate themselves as more financially knowledgeable; and are more comfortable making the financial decisions required to prepare for their future.* Recent research* on the financial situation of Canadians, our savings and investment behavior, and our attitudes toward retirement and savings advice, has demonstrated the significant value of financial advice delivered to the public, at all income and asset levels: • Advice has a positive and significant impact on financial assets. • Advisors perform tasks vital in the financial lives of their clients including improved financial literacy, developing a culture of savings and investment, developing and executing a financial plan, selecting appropriate financial vehicles and products and improving investment decision-mak-
ing. Advice positively impacts retirement readiness. • Canadians trust their advisors, feel positive toward them, and feel more confident they will have enough money to retire comfortably. A comprehensive financial plan should address investments, cash flow, education, estate, insurance, retirement, and income tax planning – and here’s the key - to be successful, your plan must be personally tailored to you. It makes sense to seek the advice of a financial advisor who will take you through the following six-step planning process: 1. Goal setting – define and prioritize your goals and concerns. 2. Data gathering – record all pertinent financial information in order to understand your current financial situation. 3. Financial analysis – examine data to determine whether you are on track to achieve your financial goals, and to identify possible alternative strategies to achieve them. This includes a review of how to reduce your taxes; determine whether you’ll have enough income to cover your retirement expenses; and strategies for protecting your family and income should you become disabled or die unexpectedly. 4. Plan formulation and recommendations – develop a written financial plan which contains recommendations and an action plan for achieving your financial goals and improving your overall financial life. 5. Plan implementation – take action to apply the solutions that have been agreed upon. 6. Monitoring and plan review – financial planning is not a one time event. You should review your plan regularly, ideally at least annually or as major life events occur. These six straightforward steps are a great start on building your personal financial plan. Be sure you get the advice you need by talking to a financial advisor with the team, qualifications and tools you can count on. *IFIC Value of Advice Report 2012. Lorne Matthews-Glasspoole is a Financial Planner at Investors Group, in Kingston, ON. You can contact him at lorne.matthewsglasspoole@investorsgroup.com This column, written and published by Investors Group Financial Services Inc., and Investors Group Securities Inc. presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances.
LEGAL
You know you need a family law lawyer when‌ your business and other assets are dealt with as you intend in the event the relationship ends or one partner dies. These Agreements often also speak to the issue of possible future spousal support, which can become significant for some business owners. Family Law lawyers often work with accountants, actuaries, business valuators or corporate lawyers to sort out the intricacies of your particular situation in order to ensure an orderly restructuring while preserving the viability of the business, which is almost always in the parties’ best interest. In the case of the end of a marriage or cohabitation, there are several options open to those who wish to reach a negotiated Agreement. This Agreement usually reflects the current state of the law but parties are at liberty to create their own terms in these Agreements. These options include: 1. Negotiation where the lawyers relay through letters or meetings the views of their respective clients; 2. M e diation where the
parties work with a neutral third these issues will be resolved. party mediator (with the advice and participation of legal counsel Often, where business interests as needed) who assists them in are involved, whether ownership is resolving the issues from their limited to family members or where separation. If they are able to it involves third parties, an “orderreach an agreement in principle, ly and equitable settlementâ€? is not it is written down as a “Memo- quite so simple. A change in family randum of Understandingâ€? that status can have significant legal imis used by the parties and/or plications on a business depending their lawyers to prepare a Sepa- upon how the ownership interests ration Agreement; of the business are held. Knowing 3. Arbitration where once again a how the law will affect these assets neutral third party listens to the in the event of the end of a relationparties and/or their lawyers re- ship can assist in ensuring that the garding the issues in contention proper contracts are in place to proand then makes a final legally tect those assets. binding decision (called an ArThe area of Family Law is a combitration Award); plex one often filled with landmines 4. Mediation/Arbitration which is for the unwary. This is particularly a combination of the two pro- so in the event of a business intercesses; or est. It is important to consult with 5. Collaborative Family Law in- a family law lawyer as early as posvolves a series of meetings be- sible should you be faced with one tween the parties and each of of these situations so that you have their legal counsel. If success- an understanding of your rights and ful, the meetings will culminate obligations to ensure you obtain the in a Separation Agreement. If desired result. unsuccessful, the parties are required HANK YOU FOR YEARS OF by an Agreement (signed SUPPORT INGSTON AREA at the outset of the process) to retain new lawyers to represent them if they wish to go to Court so that a Judge can Phone 613-542-0820 • Fax 613-548-8616 decide how
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Carolyn Shelley, Lili Kramil-Marcus, Lesley Kendall Cunningham Swan Carty Little & Bonham LLP
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As a business owner, the day to day operations of your business are often all consuming. When the exigencies of life intrude, there is often little time to deal with them. There are, however, occasions when family matters must take precedence and it is necessary to consult with a Family Law lawyer. Some of the situations necessitating a consultation with a Family Law lawyer are an impending marriage, living together in a common-law relationship, the end of a marriage or relationship, or the changing of the structure of a family owned busi-
ness. In Ontario, family law matters such as these are governed by the Divorce Act and the Family Law Act. The legislation provides for the creation of Domestic Contracts, such as a Marriage Contract, a Cohabitation Agreement or a Separation Agreement and it is intended to provide a framework in law for the orderly and equitable settlement of the affairs of the spouses upon the breakdown of the relationship. When a business owner makes a decision to cohabit or marry, consideration should be given to putting a Cohabitation Agreement or Marriage Contract in place. The purpose of these documents is to ensure that
Lorne Matthews-Glasspoole Consultant
R0021754914
By Lili Kramil-Marcus, Lesley Kendall and Carolyn Shelley
lorne.matthewsglasspoole@investorsgroup.com
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375 Select Dr. Kingston Ontario K7m 8R1 • 613-546-8885 Group Publisher: Duncan Weir General Manager: Donna Glasspoole Sales Coordinator: Kate Lawrence Printed by performance printing
Production: Rob Purvis, Adele Webster, Jennifer Palmer Sales Representatives: Rick Schutt Kevin Dillon Barb Revelle Jennifer Piribauer Norm Pengelly
Contributors Jay Adamsson Bill Hutchins Jennifer Baker Lisa Ilan
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9
PROFILE
Business owner waxes lyrical about his Kingston experience Jeff Creamer has translated his passion for music and his unique approach to teaching it to others into two vibrant businesses in Kingston, thanks to significant help from the staff at the Kingston Economic Development Corporation’s (KEDCO) Entrepreneur Centre. After arriving in the Limestone City three years ago, he established his first enterprise, home-based guitar lessons under the Rockmeister brand. More recently, he has taken over ownership of the Dorian School of Music on Bath Road, which allows him a base of operations for his Rockmeister program, as well as offering a fullservice music training facility. Growing up in Nova Scotia, where music is a way of life, there was no doubt in Creamer’s mind that he wanted music to be his vocation. “Music brings people together - I believe that to this day. Music was what you did for fun. You had a guitar and some fiddles and you sat around at a house party and played and sang together. It was the norm,� he said, adding that as a child, he started playing a number of different instruments before finally settling on guitar. “I was in my first band when I was about 15 and did that for two or three years. At the same time I also started teaching guitar. I taught pretty much everyone in my high school. They all came to me. Someone would get a guitar and wanted to learn how to play it, and word got around that I would teach them to play.� Over the years, Creamer developed a unique style of teaching that sets him apart from most other instructors, and it’s a big part of the reason for his success and popularity both through Rockmeister and later the Dorian School of Music. “I have a totally different approach to teaching music. I do it in a more spiritual way. I don’t follow any traditional methods, and I don’t teach from books. I have a way of customizing lessons for someone right on the spot. The first thing I do is an actual assessment and find out what the person is looking for, and then devise a way to make it happen,� Creamer explained. After moving to Kingston, Creamer starting his home-based Rockmeister classes within days of arrival. Not long thereafter, he decided he wanted to hook up with a music store to broaden his clientele and bring in a
new revenue stream. “I called around to all the schools and the only one that called me back was the Dorian School of Music. I went there and talked to the owner and he hired me on the spot. He said I was exactly the kind of guy he wanted. So it was supplementing my home-based business nicely and also gave me a little more credibility in the city. As my reputation got better and better, I got busier and busier,� Creamer said. After a couple of years, the owner was looking to sell and approached Creamer saying he wanted to hand over the business to him. Creamer leapt at the opportunity. He then contacted the KEDCO Entrepreneur Centre, as he had previously accessed their services and valued business advisor Mark Hanley’s support when he was getting Rockmeister going. It was only nat-
ural that when it came time to buy Dorian, an established business with its own facility and all the complications that engenders, that Creamer approached Hanley for some practical advice. “Whenever I have had any questions or needed advice on anything, Mark was there. He taught me about ways to advertise and set me up with connections that turned into more business for me. Basically, he taught me a lot about business because there was a lot I didn’t know. It was the first business I had ever owned. Before this I just taught lessons as a side project. And as issues arose, it was nice to have an expert that you could just call up and ask questions and get the proper answers,� Creamer said. Advertising strategies, developing a marketing plan, accounting/bookkeeping and devising a financial plan were all aspects that KEDCO’s
Entrepreneur Centre helped Creamer instill in his business model. “I had no idea how to track my expenses and what were expenses and what weren’t. They connected me with a financial manager, which was integral to making this business work. As for advertising, I always thought it was something expensive and hard to attain. KEDCO helped me identify ways to promote my business and helped me come find a savvy marketing person which opened up the world for me,� he explained. “They also helped me understand about pricing for my services, and understanding that sometimes if your price is too low, it’s not necessarily going to attract more business, it’s going to repel people. I learned that there are different levels of clientele – the bargain hunters, and people who are willing to pay for quality. I learned how to determine my clien-
tele and price accordingly, and to not be afraid to experiment with pricing. He convinced me to try raising my price by $5 an hour, and I actually doubled my business in two weeks!� The availability of Hanley and his colleagues at KEDCO is something Creamer raves about. No calling up executive assistants and booking appointments weeks in advance. No sterile, bureaucratic offices – they come to you, or meet you in a place of comfort. “They often answer you within the same day. I never expected that sort of service. It’s amazing.� For more information on Creamer’s operations, visit www.rockmeister.ca, or www.dorianschoolofmusic.com For more information on the programs and services offered to small businesses by KEDCO, visit www. kingstonentrepreneurs.ca.
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PROFILE
EDUCATION
One-of-a-kind enterprise The problem that may surprise you At age 19, a frolic in a friend’s swimming pool prompted an idea in the mind of Joe Stilwell. But it took more than a decade for that vision to come to fruition in the form of Hydrathletics Aquatic Therapy and Sports Training in Kingston. And it also took some assistance from the Kingston Economic Development Corporation (KEDCO). Stilwell was born and raised in Ottawa. An athlete from the moment he could walk, he played a number of sports before specializing in volleyball partway through high school. His competitive career lasted 13 years and saw him garner two provincial championships, as well as national silver and bronze medals. One summer day he was splashing around in a friend’s pool when he came upon an idea that changed his life. “Just before I went away to school at Loyalist College, I was in my neighbour’s pool just jumping around, and I was going all the way to the bottom of the pool and exploding upwards. And I remember thinking that this would probably be a really great way to train for jump training for volleyball, using the resistance of the water, but without the impact,” he said. Stilwell began to do some research and eventually came across a company called HydroWorx in the United States that specializes in building pools that feature in-water treadmills, massage hoses, and resistance training through the use of adjustable jets. The water is kept at 90 degrees and there are underwater cameras connected to monitors which allow for real-time feedback. The pools fascinated Stilwell, but at the time, HydroWorx was not totally sold on getting involved this young upstart from Canada. “Then I sort of forgot about it, went to Loyalist and studied Fitness and Health, took a year off to travel and then went to Dalhousie University for kinesiology. While there I started thinking about it again and did a couple of papers on water therapy,” Stilwell said. His studies re-invigorated his interest in the water-based therapy pools offered through HydroWorx. When he moved to Kingston to be with his fiancé, he took a job as a personal trainer by day, and in the evenings did physiotherapy in the pool at St. Mary’s of the Lake Hospital. About 2 ½ years ago, he first got in touch with staff at KEDCO, seeking business guidance and practical support. “I went to one of their meetings where they do an introduction to business, and then I made a followup appointment. I would meet with them once a month and each time they would give me two or three things to work on for the next month. So I would do that, and bring it back, and they would review it and give me some feedback. So it took about a year of me going in once a month, and slowly building everything into a solid business plan,” Stilwell said, adding that the plan helped him land an investor, and that KEDCO staff also put him in touch with commercial property owners who were looking to lease space. After finally
landing a deal with HydroWorx, construction began on Hydrathletics on Midland Avenue in Kingston, and the doors opened for clients late in 2012. “KEDCO taught me a lot. I learned so much. They open your eyes to a ton of stuff that most people have no idea about. Lots of entrepreneurs have ideas but they’re not businesspeople. So it’s a good idea for anyone to go and talk to someone who knows what they’re talking about when it comes to business. They can tell you, honestly, if your idea is a good one or not, and if it isn’t they can help you tweak it to make it a good idea. I think it’s a good thing for people to check out.” And lots of people have already benefitted from Hydrathletics in its short lifespan. Stilwell says there is an even mix of people looking for a fun, low-impact form of exercise, and those looking to rehabilitate from injuries or surgery. “We have marathon runners and triathletes, people who are looking to run on the treadmill and get a good workout without pounding their body. Or they have a nagging little injury, and it’s so much better for them to come in the pool and do a run,” he said. “It’s all about taking the stress off your joints. Going to land-based physio is great, but you don’t always get the range of motion that you can get in the water. Because the water is warm, your muscles loosen up. When you’re going through the exercises, there’s no stress on the body, so you can actually build the strength in your legs, or knees. Within about five sessions, people really start to notice the difference. And people in general just really enjoy being in the pool. It’s more relaxing and more fun than just sitting on a table going through the motions.” And Stilwell isn’t going through the motions as far as his company is concerned. He has plans to expand to two pools in Kingston, and eventually start-up operations in bigger centres such as Ottawa and Toronto. At present, outside of the Toronto Maple Leafs and Calgary Stampeders, his is the only HydroWorx pool of its kind in Canada, and the only one open to the public. For more information, visit www.hydrathletics. com. To discover how KEDCO can help folks looking to start or expand their small business, visit www.kingstonentrepreneurs.ca.
when the program opened in 2010, it was 72 per There is a major problem in Canada that affects cent. Marks and attendance rates are going up; so all of us in economic, social and personal ways. It too are students’ expectations that they need and deis far-reaching and may even take generations to fix. serve to graduate from high school in order to break It impacts us all and yet many don’t even know it the cycle of multi-generational poverty that exists in exists and will be surprised when they find out what the community. it is. Why should you get involved? An investment in The problem facing all Canadians is the high Pathways to Education is an investment in a more school dropout rate, where the rates can soar any- prosperous nation – and a more prosperous Kingston where from 50 to 70 per cent in low-income commu- – as every $1 invested in Pathways generates a $24 nities. This is significantly return to society through higher than Canada’s prodecreased social costs vincial high school dropand an increased tax base. out rates, which range But more so than that, between 20 to 30 per cent, Kingston’s reputation as and as low as 10 per cent an academic town means in Canada’s most affluent it’s important for the comcommunities. munity to get involved This “achievement in raising its own future gap” hurts us all. Research scholars and next generaconfirms that high school tion of upstanding citizens dropouts are more likely and skilled employees. to be unemployed, tend to You can help support commit more crime, have Pathways to Education higher incidence of illness and the youth of Kingston and drug use, and tend to by giving them the gift of rely more on social assisyour time as a volunteer tance. Therefore, all Canaand donations. Another dians have a responsibilmeaningful way of supity to do what they can to porting youth is to hire close the achievement gap them for part-time posibefore it’s too late. tions as a means of enThis situation is unforhancing the labour pool in tunately present in the City Kingston. This will boost of Kingston. Historically, their self-confidence as over half of Kingston’s they learn new skills, deyouth in Rideau Heights velop a good work ethic, and Inner Harbour comearn their own income, munities have dropped out and help build their réof high school. The barrisumés. In turn, you’ll ers to academic success receive the satisfaction facing youth in these comof knowing that the next munities are widespread generation of Canadian and include lack of comworkers are well equipped puter and internet access, to meet the challenges and bullying, low self-esteem, stress, lack of parental demands of today’s workforce. support in order to engage in educational pursuits, To learn more about the Pathways to Education unawareness of post-secondary educational options Kingston program and how to sponsor a student visit and the high costs associated with school activities www.pathwayscanada.ca/en/Kingston. such as lunch, transportation and field trips. In addition, these neighbourhoods Personal have the lowest average family income in Kingston and the highest percentage of service adults who have not completed secondary for your school. specific Thankfully, staff at Kingston Community Health Centres recognized the need needs to support Kingston youth in getting that all-important high school diploma and in QUALIFIED HORTICULTURIST 2010, brought the Pathways to Education program to the community. Pathways to Education is a charitable organization Spring is here and your lawn and gardens founded in 2001 and helps youth in low- are showing signs of coming back to life. income communities graduate from high school and successfully transition into Book early for the help you may require post-secondary education or vocational to get your landscape looking its best. training. The Pathways to Education program provides students with the tutoring, spring clean-up mentoring, financial assistance and advoperennial bed cleaning - dividing plants, cacy supports they need to overcome the systemic barriers to education they face reshaping beds, mulching & planting and has been proven to lower dropout trimming & selective pruning rates. All high school students living within raking, dethatching, aerating, fertilizing & the catchment area in Kingston are eligible overseeding lawns to join the Pathways to Education program. planting trees, shrubs, evergreens & flowers In addition to the academic and mentoring support they receive from Pathways to EdALSO AVAILABLE: Seasonal Lawn Maintenance ucation, students are given lunch vouchIncludes: weekly lawn cutting, edging beds, trimming ers, bus tickets and bursaries towards post& powerwashing sidewalks, patios & driveways. secondary education for each year they are P l e ase c in the program. Student-Parent Support all for a tion & estim FREE consulta ate Workers support the students through the . many challenges of high school and liaise Guy Gariepy, Horticulturist between the student, the school, families 613.542.8077 and Pathways. ggariepy@cogeco.ca Kingston students and parents have embraced the Pathways to Education pro25 years experience Liability insured - DVA Approved gram. Today, the enrolment rate among Member of the Chamber of Commerce eligible Kingston students is 100 per cent; R0011948287
By Jim Barber
Kingston Business Today - Monday, June 24, 2013
11
HUMAN RESOURCES
BUSINESS
Finding employees with the “right fit” Know your strategic alliance options
By: Connie Carrillo
the performance of candidates on a series of criteria. They tend to use behavior-based interviewing techniques, which involve scenarios involving a difficult situation and asking candidates how they would handle it. Testing: Where possible, candidate should be asked to complete an assignment to demonstrate core and position competencies. For example, if the job involves public speaking, candidates might be asked to prepare a presentation. Other positions may merit psychometric assessments, to identify how well a candidate’s personality, temperament and values fit with the business’s core competencies. Reference Checks: Research shows that up to one-third of applicants embellish their employment history. Checking references helps weed out dishonest candidates. Orientation: research indicates the retention rate of new employees can be increased by as much as 40% with an effective orientation program. This can include pairing the new hire with a more experienced staffer who can mentor and coach the person during their early days in the workplace. In conclusion, for effective hires, managers should use evidence based processes. If you need help identifying your business’s core competencies and position competencies, developing job descriptions or with recruitment and selection, consult a human resources professional. Connie Carrillo is a Certified Human Resources Professional, operating as HR on Target. You can visit Connie at her website, www.hrontarget.com , email her at carrillo25@hrontarget.com or phone Connie at (613) 389-3265. She is also a member of Professional Expert Advisors Kingston (“PEAK”) www.peakteam.ca/.
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Central to a business’s success is finding the right people. While successful hires are the single most important factor in a business’s prosperity, failed hires lead to lost productivity, lost opportunities and expensive termination packages. Why do some of the people we hire not work out? Most often, it’s not the absence of essential skills. More frequently the problem is that they are not the “right fit” for the organization. Although most organizations recognize the importance of hiring for fit, available figures suggest only a few do so successfully. A Harvard study found that 80% of employee turnover arises from poor hiring decisions. Other studies show that about 40% of all executives either leave or are fired from an organization within 18 months of being hired because they were the wrong fit. Typically, the financial impact of turnover is between 2 to 3 times the annual salary of the departing employee. Yet recruiting and selecting the person with the “right fit” does not “just happen.” Successful hires occur when employers use evidence-based approaches to hiring. By contrast, traditional approaches to recruiting, which focus too heavily on skills
and experience, miss what is important; skills can be taught and experience can be gained. Evidence-based recruitment and selection typically includes the following elements: Identifying “Core Competencies:” Businesses that consistently find employees with the “right fit” begin their recruitment efforts with a clear understanding of who they are as an organization. This understanding may be summarized as “core competencies.” These are the specific factors that a business sees as being central to the way it works. How does a business identify its core competencies? If it has a strategic plan with a mission and vision statement, this may be the best place to start. Another approach involves a cultural assessment that examines an organization’s internal fabric, encompassing leadership style, shared values and behavioural norms. This process consider such questions as “What characteristics do the business’s your most successful people have in common? What values are central to the organization? What does it take to be successful in your organization? Identifying “position competencies”: This is the combination of ability, education and experience required for success in a specific position. For example, an innovative approach might be a core competency, while the capacity to understand the financial statement maybe a position competency required of an accountant. Job Descriptions: Effective job descriptions incorporate core competencies, position competencies and the metrics of success. They outline all of the position’s responsibilities. Consequently, job descriptions summarize what the employer should be looking for throughout the recruitment and selection process. Structured Interviews: Unstructured interviews have a reliability of only about 20%, but structured interview are about 51% reliable. Structured interviews include an evaluation scorecard to grade and compare
1473 John Counter Blvd., Ste. 201, Kingston, ON K7M 8Z6 T: (613) 544-2903 12
Knigston Business Today - Monday, June 24, 2013
Contributed bwy: Lisa Ilan Senior Manger BDC Kingston
Are you looking for a way to speed up entry into a new market, improve your productivity, gain a competitive edge or increase your range of products? A strategic alliance may be your answer. “There are no set rules for such partnerships; they are what the businesses involved want them to be,” says Lisa Ilan, Senior Manager, BDC Kingston. For instance, a manufacturer might outsource distribution to a specialized firm, and benefit – and increase profits – by being able to focus on its core business. Or an Internet-based store could team up with an overseas courier company to accelerate delivery to clients in a specific market. “There are any number of strategic alliance options available; what’s important is to choose the one that fits your business profile,” Ilan says. Types of strategies Join forces to achieve economies of scale In general, an alliance can help a company achieve economies of scale. By joining forces, partners can obtain better purchase prices from suppliers and lower their cost per item. For example, a manufacturer of veneers and plywood joins forces with nine of its competitors to select a common transportation company. After guaranteeing the transportation company a minimum volume, these businesses convince the organization to give them a flat rate and to invest in equipment to protect their products during shipping. As a result, each business obtains better rates, and the new transportation company is guaranteed a certain volume. Use a larger company’s distribution network By striking agreements with distributors, you can invest more profits into your core business. However, it is crucial to profile potential distributors to ensure that they are aligned with your needs, match your company profile and represent you well. For example, the same company may convince a large local lumber company to handle its deliveries as their markets overlap. Both companies take advantage of this arrangement to simultaneously expand their basic market. The lumber company now promotes concrete products
in lumberyards, and the manufacturer promotes wood products in superstores and renovation businesses where it already has a presence. Pass useful knowledge down the chain You can also create strategic alliances with suppliers to develop new products and share knowledge and training to improve your production process. For instance, you can coordinate your production schedule with theirs, reduce costs through size and timing of orders and increase your range of products and services. Keep in mind that you will have to update your partner on any changes in new products and share forecasts to develop accurate sales plans. Choose the best partner You should choose your partner based on how the company ranks according to your key criteria. It’s important not to be lured by sales pitches that don’t meet your demands. Take time to do your research, check the credit of potential suppliers and get firsthand advice from other companies that may have dealt with your prospective partner. Remember, that although the price is important, so are reliability and speed. A joint venture for on-site production Another type of alliance strategy is to set up a joint venture where an on-site partner is responsible for production and the distribution of products in a specific area. In general, your partner would transfer knowledge and knowhow, and you would collect royalties in return. Your business gains from your partner’s specific market expertise and you get easier access to the market. For example, having developed an innovative product and the requisite machines for production, a company may decide to issue exclusive licenses in several provinces. This small business can now sell, install and maintain its equipment remotely and also collects royalties on the products sold. That’s just a start. There are many other types of alliances you can consider, depending on your business needs. What is important is to select a strategy that will help you bring your business to a whole new level of growth.
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BUSINESS
What’s in a Name? By Jean BÊdard
Many incorporated businesses may be breaking the law without even realizing it. Those that operate under a business name rather than their incorporated name are often unaware that in any dealings with their suppliers and clients, they must use their corporate name in full on all cheques, purchase orders and contracts. Failing to comply with this requirement is a breach of the Business Corporations Act (Federal or Provincial) and could have serious financial repercussions for the owners. If your company is an Ontario numbered company (i.e. 123456789 Ontario Ltd.) but you are more commonly known by a business name (i.e. The Limestone Bookworm), you must still make sure that you let your suppliers and customers know that, in transacting business with you, they are dealing with an incorporated company. Using a business name only or an abbreviated form of your corporate name (such as dropping the INC or the LTD at the end) may also expose you to personal liability if your company is not good for the money. If a company wishes to use a business name other than its full corporate name, it must first register the business name pursuant to the Business Names Act. Failing to do so is contrary to legal requirements and creates a presumption that person operating the business does so as a sole proprietor with un-
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limited personal liability. In many cases, the sole director or shareholder of a small company ends up in the same situation as if the company had not been incorporated. Over the years, I have seen a few of these cases land in court and the judgment was ultimately rendered against the directors of the incorporated companies for failing to make this distinction known. As a result, the directors became personally responsible for the company debts. Anyone who deals with an incorporated business must be made aware that they are doing business with a company. Otherwise, they are entitled to assume that they are doing business with an individual who is personally liable for all obligations of the business. This may not be an issue if the business is doing well, but it can become a serious problem if the business is in financial difficulties and creditors are looking for someone to pay what is owed. The owner of the business may well have lost the benefit of limited liability. While it may seem more complicated and inconvenient to have all of your business supplies printed to reflect both the corporate name and the name under which the company does business, shortcuts can be costly. The content of this article is for general information only and should not be considered as being legal advice. You should consult with a lawyer to review your personal situation and obtain legal advice.
Contributed by: Lisa Ilan Senior Manger BDC Kingston
If you think marketing always involves costly advertising, you’ll be relieved to know there are low-cost alternatives. “Getting your message to potential customers can be done in a way that suits any budget, says Senior Manager, BDC Kingston. Marketing to existing clients is one option to consider carefully. It’s inexpensive and effective, since your customers already know your company and you know their preferences and needs. Take advantage of this invaluable knowledge and use it to build a campaign. When you do try to reach a broader market than your existing customer base, tailor your strategy by being visible in places that are relevant or meaningful to that audience. Ask yourself: What do they read? What do they watch? What activities interest them? “Always work with a specific goal in mind so that you can easily map your progress. You need to know whether your goal is to obtain e-mail addresses or increase traffic to your web site, to boost sales of a specific product or to change public perceptions of your product or service,� Ilan says. There are many low-cost ways of getting your message out. Choose the vehicle that best fits your business. Referrals: Set up a referral system so that your existing customers can provide names of potential clients. You might consider offering discounts to those who refer new clients. Public speaking: Offer to be a speaker at a conference associated with your type of product or service. Web site: If you want to extend your reach inexpensively, set up a basic web site. Even a single web page will enhance your firm’s visibility. Be sure that your products look appealing and that the site’s look and feel are consistent with your brand. Provide up-to-date data and full contact information. Press releases: Write short, engaging, newsworthy press releases and distribute them to newspapers, magazines and radio stations. Direct mail: Use direct mail to target specific
audiences. This is most effective if followed up with telemarketing. Local marketing: Community newspapers offer low-cost advertising, and community bulletin boards are generally free. Brochures: These can be costly. If you are selling a high-end product or service, your brochure must reflect this. Keep it simple but professional, and try to estimate how many copies you really need. Marketing that looks amateurish is not a wise investment. If you use professionals, be sure to learn from them; in the future, you may be able to handle some of this work yourself. Yellow Pages: The big advantage of this publication is that it is kept for the entire year. Be sure to list yourself in the business categories where prospects can easily find you. Trade shows: This marketing vehicle is only worthwhile if your product or service is aimed at a well-defined target market such as other businesses. Avoid trade shows if your market is diffuse and generic. Networking: This is an ideal opportunity to demonstrate your expertise, particularly if you offer professional services. Joining business associations, for example, enables you to leverage more work from existing clients and find new ones. Entrepreneurs join associations in order to share information and skills. The challenge here is to offer your services discreetly. Avoid a “hardsell� approach in which you foist your services on people in such settings. Advertising: Online advertising is generally less expensive than offline advertising. Be sure to determine if your target market uses the web; if your audience doesn’t go online, neither should you. If your customers are online, be sure you know what sites they visit. Ensure that your online presence can give you quality leads and place your ad on a page where visitors are likely to linger, rather than a home page they will quickly click past. Your final goal is to ensure that these new customers you have fought so hard to win over generate repeat business. Do not promise anything you can’t deliver, and be sure adequate resources are in place to meet projected demand. Also make sure your inventory is adequate and that your web site can handle projected volume.
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Jean BĂŠdard is a member of PEAK. He specializes in franchise law, corporate and commercial law, contracts and agreements, and consumer protection.
Contact: 613-532-2090 E-mail: alicew_101@hotmail.com facebook.com/sparksocialmediamarketing Kingston Business Today - Monday, June 24, 2013
13
HALL OF FAME
Community leaders inducted into Kingston Business Hall of Fame The Kingston Economic Development Corporation (KEDCO) and the Greater Kingston Chamber of Commerce are pleased to announce the latest inductees to the Kingston Business Hall of Fame. The seven inductees were honored at a breakfast on Tuesday, June 11 at the Days Inn & Conference Centre Kingston. The following individuals are celebrated for their significant contributions to the Kingston community: in the visionary category, John Molloy, former CEO of PARTEQ Innovations and Lily Inglis (posthumously honored) of Inglis and Downey Architects;  in the enabler category, Kathy Wood, President and CEO of Natural Capital Resources Inc.; in the mentor category, Shai Dubey, Director of the Queen’s MBA Program and Academic Director of the Masters of International Business Program and Peter Swan, retired lawyer of Cunningham Swan Carty Little & Bonham LLP; and, in the category of Community Builder, Peter Splinter, owner of Braebury Homes and Walter Fenlon, financial advisor and Board Chair of the Grand Theatre Foundation. “These individuals have led by example and have added to the character and vibrancy of the Kingston community,� says Jeff Garrah, Chief Executive Officer of KEDCO. “We are happy to partner with the Chamber on this annual event to recognize these community leaders for the invaluable support and contributions to our great city.�
Since 2006, the Kingston Business Hall of Fame has honored over 35 individuals for their contributions to the community in the categories of visionary, enabler, mentor and community builder. Â The inductees are carefully chosen by a selection committee comprised of local business and community leaders. For a full list of past Business Hall of Fame inductees, please visit http://business.kingstoncanada.com/ en/halloffame.asp
From left to right: Donna Woodbury Chair of the Chamber, Shai Dubey Director of Queen’s School of Business & Academic Director of the Masters of International Business Program inducted as a Mentor, Janie Faulkner accepting on behalf of Lily Inglis of Inglis & Downey Architects inducted as a Visionary, John Molloy of Parteq Innovations inducted as a Visionary, Kathryn Wood of Natural Capital Resources Inc. inducted as an Enabler, Walter Fenlon of Assante Financial Management Ltd. Inducted as a Community Builder, Peter Splinter of Braebury Homes Corporation inducted as a Community Builder and Dean Byrnes Kedco Chair, Missing: Peter Swan of Cunningham Swan Carty Little & Bonham LLP inducted as a Mentor.
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COMING EVENTS Chamber Leaders Breakfast at St. Lawrence College Tuesday, 17 September 2013, 07:15am - 09:00am Meet the new leaders in Kingston’s community including Police Chief Gilles LaRochelle featuring a brief update from St. Lawrence College President and CEO Glenn Vollebregt. Host: St. Lawrence College Davies Hall
Connect: The Business Expo (Formerly the “MegaMixer”) Thursday, September 26, 2013: 2 – 7 pm Where: K-Rock Centre, Kingston, Ont. Host: K-Rock Centre, Sponsor Printfusion Join us for the largest networking event of the year at the K-Rock Centre! Book Your Tables Additional sponsorship opportunities for exhibitor reception, grand prize and registration bag. Table Exhibitor: $400.00 + HST; Premier Table Exhibitor: $500.00 + HST; Non-Member: $750.00 + HST; Logo - Score Board: $50.00
+ HST; Plush Carpet: $120.00 + HST. Cancellation policy: one month notice for full refund. Contact: Dana Betournay, Events Coordinator: dana@kingstonchamber.ca; (613) 548-4453, ext. 1000
Chamber breakfast Emerging stronger in Ontario Tuesday, 08 October 2013, 07:15am - 09:00am The Ontario Chamber of Commerce issued Emerging Stronger 2013 in January of this year. It surveys the progress that business, government, and civil society have made over the past year. It identifies the challenges we still face, and sets out the tangible steps we must take to ensure that Ontario emerges stronger from this period of economic transition. Hear Josh Hjartarson, Vice President, Policy and Government Relations at the Ontario Chamber discuss how the recommendations in Emerging Stronger offer a policy roadmap for the next several years.
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