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A tidal wave of business ownership change is coming, and many business owners should be preparing now, urges Carson O’Neill, Managing Principal of Rincroft Inc., a Waterloo Region-based company which facilitates the sale of small and medium-sized businesses.

His firm has completed the sale of more than 50 family-owned businesses, many of them in Waterloo Region.

Carson most recently penned a book for business owners entitled The Road to Enterprise Value.

He confirms that most owners of Canada’s 1.2 million SMEs are now in their 50s and 60s and looking to sell their businesses over the next five years to fund their retirement.

“The owners are capable in running the operation. They’re down to earth, salt of the earth people and smart,” says Carson. “But most have never been down this path before. For many of them, it’s unchartered water with a lot of money on the table.”

Carson adds that the process is complicated and can last six to nine months.

“There are many issues above and beyond agreement on purchase price. Who’s going to pick up the employees? What about the future of the manufacturing facility? What about the leases? What about the intellectual property? It can be complex and multi-dimensional.”

As entrepreneurs, he says business owners often are often inclined do everything themselves which runs the risk of them receiving much less than what their business is worth, in turn resulting in a less comfortable ‘nest egg’ for retirement.

“The buyers are typically aggressive and want to get the price down,” says Carson. “They’re professional buyers, many of whom who’ve bought many businesses before, so they want to work with a business owner who unfamiliar with the process.”

To better understand the process of selling a business and some of the factors that drive business owners to sell, we discussed several questions:

Q. What would you recommend be the first steps a business owner should take when it comes to selling?

Carson: Delay if you possibly can and get the business in good shape. The business owner should step back, assess the state of the operation, and take steps to strengthen it any way possible. They should not be in a hurry to go to market; our company sometimes takes months working with owners to build the business up before the divestiture process even begins. The best defense is a good offense. Don’t go into this defensively, thinking ‘oh, we have to retire now’. You need to make sure the business is fundamentally strong to secure top dollar.

Q. What are some of the misconceptions a business owner may have when it comes to the process of selling?

Carson: Having never been through the process before, many owners think selling a business is like selling a house. The process is far more complicated and takes much longer. The valuation is far more complex, the information package is far more extensive and there are multiple conditions which need to be met before the funds are wired. Is there inherent value in the business? Does the business have unique capabilities so it can be sold? Where is the ‘secret sauce’?

Q. Other than impending retirement, what are some other reasons a business owner may decide to sell?

Carson: There are usually three other reasons: health problems with one of the owners; shareholders issues with at least one shareholder in need of cash; or the business has plateaued and is going south and that is never a good time to sell a business. Other reasons can include major players are entering the market with vast resources to spend to build market share and the owners are justifiably concerned they will have difficulty competing. They may not yet have reached retirement age, but they are concerned that the value of the business may well go down in the years ahead, so they are better off to sell now.

There is also the possibility of a pre-emptive offer. It is not uncommon for a buyer to approach an owner to buy even if the business is not being sold. This happens with very strong businesses. Sometimes millions are put forth, well over the assessed value. Owners may not have ‘planned’ to sell but many will seriously consider if the price is right.

Finally, the next generation has made it clear they have no interest in the family business. The owners may be in their late-40s with the second generation in their early-20s but that serves as a valuable wake-up call that it is inevitable the business will change ownership. With the emergence of the digital economy, at an early age, many in the next generation have absolutely no interest in ever taking ownership of the established family business.

Q. How has the pandemic affected the sale of businesses?

Carson: Not really. In the early months of the virus there was a period of adjustment, but people realized there was very little need to meet to complete the transaction. Our business did not miss a beat; actually, it got stronger. The change in ownership in Canada will continue relatively unaffected by the ebb and flow of the economy.

The reality is many owners have too much money locked in their business – they usually need it for a comfortable retirement. That has remained the primary reason why they sell, whether the pandemic is here or not. Canadian business owners are getting older. You can’t stop ‘Father Time’.

Q. How has the process of selling a business changed?

Carson: It is now more complicated due, in part because due diligence has become much more rigorous. We live in an age of increasing importance of transparency and full disclosure. No stone will be left unturned. Buyers will look at everything.

Did someone slip on the ice outside your business? What insecticides do you use on the grass and plants? Do you have an alleged harassment situation happening? If one is pending, it must be dealt with because the buyer doesn’t want any liabilities and will walk away. Due diligence and purchase agreements alone can now take three months.

Throughout much of last year, economics firms predicted Canada and other western nations would fall into recession by the end of 2022 or early 2023.

However, even though the latest data shows these economies have been somewhat more resilient than expected, finance experts are expecting a recession will begin a little later than originally thought.

We reached out to Chamber Members Jason Kingston and Kris Yungblut, partners at the accounting firm Grant Thornton LLP, to get their input on how to run or buy a business during a recession:

Q. Is buying a business during a recession something worth pursuing and what are some of the factors that need to be considered?

A. There are always good businesses out there, and some are even, ‘recession proof’. The key is to understand the fundamentals of the business, in relation to what is driving the recession. Looking to acquire a business during a recession can in some cases present attractive pricing opportunities.

There are a number of factors to consider:

• Proper purchase price structuring and availability/cost of financing the acquisition.
• Generally, value multiples will come down during a recession. It is important to consider if the multiple adequately reflects the company’s ability to generate sustainable positive cashflow.
• The macro issues driving the recession, and how they impact the business need to be reviewed and understood.
• The fundamentals of the business, and how the recession pressures impact them.
• The impacts of the recessionary environment on the company’s suppliers/customers. Will customers keep buying or delay their orders? Will customers be able to pay on time? Will suppliers have products available?
• The company’s ability to generate adequate cash flow to make payments, as needed (i.e. protect the company) OR to take advantages of opportunities that come up because of the recession (i.e. grow the company).
• Are there opportunities to do things more efficiently and/or take costs out of the business?

Q. What kind of strategies are needed when it comes to operating a business during a recession?

A. There are several strategies business owners and senior management can look to during uncertain economic times. Some of these would be different depending on where in the business lifecycle (start-up, mature, etc) the particular business is, but many are common to all businesses. Examples of these would include:

• Improve cashflow of the business. This can be through reducing cash going out, such as not ordering large quantities of unnecessary supplies to have on hand or cancelling unnecessary subscriptions or getting additional cash in the door through the sale of redundant assets. The important thing to remember is that expenses should only be reduced if doing so does not harm the business and its ability to operate.
• Review larger strategy initiatives and the actions needed to meet the strategies. Ensure that only those activities which will have a clear impact on the achievement of key strategies are invested in, taking a less is more approach. For example, if pursuing multiple new product offerings, take the time to realistically project the potential sales volume of each product and its contribution to the gross margin of the business and focus on those which generate the best return on investment.
• Prepare budgets and financial forecasts. Cash forecasting can allow a business to better understand how and when cash is received, as well as the impact of investing in new equipment and machinery. Strong budgets and forecasts give the business owner the ability to engage in scenario planning and adjust quickly as cash needs and opportunities change.

Q. Are there any steps a business owner can take in advance of a recession?

A. Before the onset of a recession there are several things a business owner can do. Some of these would be good business strategy regardless of economic conditions, while others are more situational.

One planning exercise that can be done is creating a cost adjustment checklist. This would be an analysis of costs which can be reduced should times get tough. During good times there is no imperative to act on the checklist, however, when the tides are turning having already performed the exercise the owner will be better prepared to act and follow through with the cost adjustments they need to implement.

Other items which should be considered is looking at debt load being carried and renegotiating, if possible, to reduce strain on cashflow. Proactively reaching out to key customers and ensuring a strong relationship exists is a must. If you are a key supplier to another business this can give them peace of mind that you yourself are taking steps to prepare for a recession and are less likely to disappear than others who are not planning appropriately.

Q. Can a recession ever be a positive thing for a business?

A. While I don’t think I would ever make a blanket statement that a recession can be a positive thing for a business, there are clearly some opportunities and positives that can come out of a recession.

To survive a recession, most businesses will need to look at cost cutting measures as well as how to improve operational efficiency.

These actions can have longer term positive impact on the business, as the efficiency gains will continue as the economy improves, and while previously curtailed spending may be reintroduced, there will almost inevitably be spending that was eliminated that will end up not being missed and therefore won’t be reintroduced.

There can also be other opportunities to take advantage of during a recession. An example would be discretionary spending on customer acquisition, which is a commonly cut expense. Companies who have or develop a low-cost marketing plan to get potential customers attention may be able to grab market share while their competitors cut their advertising dollars.

Finally, once things improve, there may be less competition in a business’s market. If competitors were less prepared to survive a recession, they simply may not, and that leaves available market share for those who did survive.

Q. Are recessions just a natural part of the business cycle?

A. Recessions can be caused by several factors which impact the economy, such as a financial crisis like what was seen in and around 2008 and 2009 or the early 1990’s recession, the primary factors for which are believed to have been restrictive monetary policy and loss of consumer and business confidence.

Recessions do appear to follow periods of strong growth and are often viewed as inevitable, though there are some alternative theories into the causes of recessions which would argue against the inevitability of them.

However, history seems to be on the side of recessions occurring. As such, I think it only prudent for business owners to regard recessions as a regular part of the business lifecycle, to be aware of the indicators of recession, to have plans in place to help ensure their business survival during the recession and to set themselves up to thrive as the recession lifts.

Concerns about security on the app TikTok continue to mount as provincial and municipal governments consider or implement plans to restrict employees from accessing the platform on their work devices.

At the end of February, the federal government officially announced it was removing TikTok from all its mobile devices, joining a growing list of governments worldwide doing the same, despite assurances from the Chinese company Bytedance which owns the app that it does not share data with the Chinese government or store it in the country.

All Canadian provinces are implementing or considering bans, however, at this time it remains unclear if the Yukon, Northwest Territories and Nunavut will do the same.

But what does this mean for businesses, many of whom now rely on the popular social media platform to promote their business?

We asked Chamber Members and marketing experts, Ashley Gould of Cinis Marketing and Cathy Lumb of Cali Marketing Communications, to share their insight:

Q. What are some of the key benefits for businesses who use TikTok?

Ashley: TikTok is a great form of marketing for businesses looking to attract a younger audience. They also currently have a huge user base and extremely high engagement, so it is an easier platform to grow your audience on. The third benefit is that less businesses are using TikTok which translates to less competition, meaning that your posts will be seen more favourably and if you engage in paid ads the cost per engagement will be lower.

Cathy: TikTok lets you tell your business’s story with short, fun, and entertaining content that will attract and keep people’s attention. It’s ideal for fun interactive activities and challenges to keep your audience involved and growing.

A benefit for your customers is that they won’t feel they are being advertised to, as with some traditional advertising. Businesses can get a great idea of what their customers like about their products or services as well as what needs to be improved. But it’s important to answer the question: Is my audience on TikTok?

Q. What has made it such an attractive social media tool for them, and can they rely on it too much?

Ashley: The pandemic helped tremendously with the success of TikTok as a platform. Suddenly, people found themselves with extra time and TikTok was a great place to find the most recent dance or trend that you could then try for yourself. Now, TikTok has a billion active users, who are on the app daily looking to be entertained.

Relying on TikTok as your main form of marketing only works for a very small number of businesses, specifically those who can ship internationally and who are geared to a younger audience. Though TikTok can be helpful for other businesses, it is equally important to spend time on platforms like Instagram Reels that take into account, geographic location on a broader scale.

Cathy: It feels more personal and is interactive, videos can be quickly created to be current and in the moment. (You still do need to carefully plan and create engaging material on TikTok.) It is easy to create content with TikTok’s dynamic music and graphics.

It’s also a great way to work with influencers who are using your product or service. If your main target audience is on TikTok then it would be hard not to be there. If TikTok is your only social media platform and at some point, feel you want to get off, it is best to be building your audience on other platforms.

Q. Should businesses be concerned about their information being compromised and shared?

Ashley: Mainstream media has made it readily known that the majority of apps access more data on our devices than they need to. That said, what is on your device should play into that decision. If your phone holds confidential information that could compromise the government, or a hospital, yes keep TikTok off that device. If the most private thing you have is your banking app, studies thus far have shown you are OK to keep the app at this time.

Cathy: This is a big concern as we never want our or our customers’ confidential information to be compromised and used by others. We have already seen many examples of data being collected by other companies and put at risk by being passed on to third parties, without their customers’ consent. TikTok is very good at collecting a lot of information about its users and we can’t be sure where it will end up. More investigation is needed.

Q. What are some steps businesses can take to protect themselves? Or can they?

Ashley: There is definitely something to be said about keeping TikTok on your personal device only and off your work device. TikTok has developed several strategies for keeping your information more private from an audience perspective, but not from a downloading and data collection perspective.

Cathy: As with all social media platforms and search engines, TikTok collects a lot of information from its users so they can effectively target ads. It is impossible for a business or individual to fully protect themselves as there is no way to opt out of all the information TikTok collects.

It’s up to each business and individual to manage their privacy, security and cookies consent on TikTok as well as their browser settings.  Even so, it’s impossible to fully protect yourself from your data being collected and possibly shared as there is no opt out for all information being gathered. A business or individual can minimize some risk by choosing not to post easily identifiable locations in TikTok videos. Individuals can set their TikTok to private to reduce risk.

Q. Do you see businesses moving away from using this platform?

Ashley: The answer to this question is complicated as it is extremely industry specific. If government employees can no longer download TikTok on their devices, then businesses that are using social media as a means of marketing to this demographic will have to find alternative routes. That said, for the majority of businesses the opposite is true, where more and more businesses are starting to create TikTok strategies.

Cathy: I think it will be a tough call to make if a business’s customers and competitors continue to use TikTok, especially if the business is benefitting. A lot will depend on what we learn in the coming weeks about TikTok, as well as what the consumer decides to do. I do think that if a business is not benefitting in a tangible way, then they may be more inclined to move away from it. 

We know that Facebook has faced criticism over the past few years, as has Twitter, but it has not stopped people from using these platforms. However, major advertisers recently moved away from Twitter in droves, so we can see that if businesses are not happy with a social media platform, they will take action.

Many individuals on social media do not feel the need to stop using it and some find it hard to understand how they can be of any interest to TikTok or Facebook.

Q. Are there any social media platforms that are ‘foolproof’ when it comes to security concerns?

Ashley:  In my opinion, no. Apps are always collecting data, it is part of how they are created, and that data is meant to further your user experience. Therefore, there is always some kind of security concern with an app. 

Cathy: All social media platforms have their strong and weak points regarding security, and all are collecting data about us. Users of social media need to adjust the security, privacy, and advertising cookie settings to the levels they are most comfortable with. Businesses on social media platforms need to keep a close eye on their social media accounts, monitor frequently and address any concerns right away.  Regularly review your analytics to determine if your business’s marketing objectives are being achieved on social media.

When Syed Hashmi’s grandparents discovered last summer they were having trouble watering their lawn due to mobility issues, a light went off in the Cambridge teen’s head.

Inspired by an email he received promoting the creation of the Youth Creativity Fund, the St. Benedict Catholic Secondary School student set work on creating a micro-controlled automated watering system to assist the elderly couple.

“It’s been a lot of fun and this is definitely a work in progress,” he said of his creative idea, while attending the official launch of the fund last Wednesday at the Ken Seiling Waterloo Region Museum.

Syed was among nearly 30 local students who were in attendance to share their vision with a variety of community leaders and supporters after receiving funding to bring their innovative ideas to life.

The fund, created in partnership between the Cambridge and KW Chambers of Commerce, BEP Waterloo Region and the Region of Waterloo, promotes creative confidence by connecting student-driven and designed ideas, with donations from people who are passionate about seeing the creativity of local youth flourish.

Through the program, students in grades 5 to 12 can apply for microgrants up to $1,000 to pursue a creative learning project that could lead to new ideas.

“This project is about creating opportunities, faster, more often and to be a foundation for our own prosperity as a community,” said Cambridge Chamber of Commerce President & CEO Greg Durocher, noting the two Chambers have committed nearly $20,000 to this initiative. “This is not an operational project for the Chambers, this is a ‘give back’ project for us, one we hope will inspire others to do the same.”

To date, 12 projects involving 48 students have received just over $10,000 in funding.

“We’ve had some great success thus far in this program,” said BEP Waterloo Region’s April Albano, YCF (Youth Creativity Fund) Manager. “What has been clear through this first wave of projects is the support these students have around them.”

For Hannah Waterfall, a Grade 10 student at Glenview Park Secondary School, the support she has received from her mom who works for Shelter Movers has been key in the ongoing formation of idea she had on preventing domestic violence which began as a civics class project. Shelter Movers is a non-profit organization that assists survivors of gender-based violence transition to a safer life.

“My mom has been a huge role model for me. Just the stories I hear from her have really inspired me to do some good for the community,” said Hannah, who is the process of creating a resource kit that can educate younger students on how to regulate their emotions. “My goal with this project is to stop the violence before it becomes an issue. I understand that as a 15-year-old girl it’s hard to end violence against women because you can’t go to the abusers and stop them. But I hope this can stop it in the younger generations, so it doesn’t become a problem in the future.”

Currently, Hannah continues to research the causes surrounding domestic violence and says providing tools, including breathing exercises to deal with stress and anxiety, are key as the kit develops.

“My family has fostered kids for about six years, so we’ve learned a lot of different strategies on how to teach kids to cope with their stress when they are angry.”

Syed is also in research mode perfecting his watering system, which uses soil sensors connected to The Weather Network, to determine when and if a lawn needs water. He admits to having a few technical issues with the current system he created using a couple hundred dollars’ worth of parts from Amazon.

“My first step is finding more reliable parts,” he joked, adding his innovative idea has kindled an interest in engineering. “As my first look at the world of engineering, it’s made me realize how much is out there.”

Creating confidence for students to pursue their ideas, especially when it’s backed by regional support, is great for the community said HIP Developments President Scott Higgins, who is one of the driving forces behind the Youth Creativity Fund.

“Having the community to rally to create an endowment that allows us to give microgrants to these kids ongoing I think, one, is a testament to say you have great ideas and continue to pursue your ideas,” he said. “And two, I think it’s to say this community believes in you and if we put that hope, and opportunity and that optimism out within the community our kids are going to do some great things.”

Greg agreed.

“The power we have is right here at our own front door; our youth, who have the ideas but don’t have the means to get guidance and mostly capital to see if their idea can come alive,” he said. “We need to let businesses and individuals know they can help make dreams come true, and that should be the easiest because here, in the Region of Waterloo, is where dreams become reality, every single day.”

Find out more about the Youth Creativity Fund.

Terms like ‘The Great Resignation’, ‘quiet quitting, ‘ghosting’ and ‘grey wave’, have become commonplace to describe trends creating upheaval for employers in their quest to attract and retain workers.

But finding a solution to Ontario’s job shortages will require a multi-pronged approach consisting of unique ideas that take into consideration the diversity of labour needs among various sectors.

In effort to find these potential ideas, the Cambridge Chamber recently brought together a group of business and community leaders – all Members - to discuss their concerns via our MasterMind Series.

“Our MasterMind sessions are a great way to get feedback on particular issues that can assist us in developing policies that we can advocate for change at the provincial and federal levels of government which in turn will benefit businesses,” says Cambridge Chamber of Commerce President and CEO Greg Durocher.

Changes to the immigration system was just one of several areas the group touched upon that would require legislative changes at both the provincial and federal levels. Others included a discussion about the need for potential curriculum changes and the costs surrounding WHMIS training.

This discussion inspired the Chamber to develop several recommendations in a draft policy it will present for approval at the Ontario of Chamber of Commerce’s AGM in April. Additional recommendations with a federal focus may be developed for another policy which the Chamber will present next fall at the Canadian Chamber of Commerce AGM.

If approved, these policies are then included in the advocacy ‘playbooks’ of both organizations as they lobby the government for changes that will benefit businesses.

Labour shortages remain a big concern

While the pandemic is often identified as the catalyst behind Canada’s continued employment issues, many experts believe our labour force growth rate has been trending downward since 2000 and has been exacerbated by the arrival of COVID-19.

In fact, according to Statistics Canada, in 2021 one in five Canadian workers were between the age of 55 to 64 – representing an all-time high of baby boomers (those born between 1946 and 1964). This translates into 1.4 million Canadians between 2016 to 2021 who are 55 or older and looking towards retirement.

Adding to this dilemma of a shrinking workforce, according to StatsCan, recruiting skilled workers was expected to be an obstacle for the first quarter of 2022 for 39.9% (approximately two-fifths) of all businesses.

The effects may be reflected in the results of an annual labour survey conducted in 2022 by the Canadian Manufacturers and Exporters’ (CME) of 563 manufacturers in 17 industries nationwide which outlined the impact labour shortages were having by indicating a nearly $13 billion loss in Canada’s economy over the course of a year.

While a job surge at the end of 2022 which saw the unemployment rate drop to 5% in December compared to 5.1% in November was welcomed news, StatsCan says a hike in illness-rated absences resulted in limited worker output. As well, while StatsCan says Canada’s employment rate increased to 61.8% in December, compared to 61.5% the month before, the projected trend shows a drop to 60.9% in 2024 – with the potential to rebound and hit 62.2% in 2025.

The effect these fluctuations will have as employers continue to seek employees to fill the nearly one million job vacancies in Canada has yet to be determined, considering the results of a recent poll conducted by the recruitment firm Robert Half indicating half of Canadian workers are planning to seek new jobs in 2023 – nearly double the amount from a year ago. That poll, conducted this past fall from among 1,100 workers from multiple sectors, showed that 50% of respondents would be seeking new employment in the next six months (up from 31% six months ago). The top reasons for this shift not only include higher salaries, better benefits, and perks, but greater flexibility to decide when and where they work.

Resources needed to improve immigration system

As current and potential employees weigh their options and re-valuate their priorities and goals when it pertains to employment, Canada continues its concentrated effort to reach its immigration target of 1.4 million in three years to fill these widening labour gaps.

While an influx of immigrants is welcomed news in hopes of easing labour shortages, the need to ensure resources are available to serve this growing population is imperative. Besides an adequate supply of housing, language training is just as important to provide them with a basic tool they need to enter the workforce even faster.

Providing necessary resources to assist newcomers was an issue raised during our MasterMind session, as well as extending the current hourly work limit permanently for international students. As well, it was suggested policy changes are needed when it comes ensuring foreign workers who do not hold management positions could bring their families to Canada more easily.

Recommendations going to OCC

The policy - entitled Opening Job Markets for Employers and Employees and co-sponsored by our colleagues at the Greater Kitchener Waterloo Chamber of Commerce – touches on several areas.

The Chamber has recommended the OCC urge the Ontario Government to:

1. Develop all potential partnerships within local municipalities and community organizations to ensure that language training is made available for new immigrants.
2. Allow those on ODSP (Ontario Disability Support Program) who can work full time to do so without risking loss of their provincially funded benefits (i.e., prescribed medications) if their employer does not provide those services.
3. Investigate a form of remuneration (i.e., tax credit) for employers when it comes to providing provincially regulated training, such as WHMIS, and their associated costs.

By comparison to other statutory holidays, Family Day is still a relatively new after Ontario followed the lead of several provinces and adopted it in 2008.

While most businesses will be closed on Monday, Feb. 20, they will be operating on the weekend itself providing a great opportunity to get out and explore and support what our region has to offer in terms of retail, dining, and overall experiences.

We reached out to Explore Waterloo Region for their input on what the Family Day Weekend means locally:

Q.  Has Family Day Weekend grown in popularity since its inception in Ontario in 2008?

A. If Explore Waterloo Region’s membership is any indication, it is definitely growing in popularity in our area.  Every year there seems to be new Family Day activities for both locals and visitors to enjoy.

Q.  Is this an important winter weekend for the economy in Waterloo Region?

A. Waterloo Region is a four-season destination, and our winter visitation numbers tend to be relatively strong compared with other areas that consider this season a “low” time.  Our region does a great job at always having interesting activities going on but having a long weekend in the winter does help our hotels encourage more overnight stays. It means visitors can extend their road trips and have more fun.

Q. What are some great things people should check out that weekend in Waterloo Region?

A. We have all kinds of great outdoor activities to enjoy like skiing (downhill and cross-country), ice-fishing, hiking, winter cycling and skating. Both the St. Jacobs Market and the Kitchener Market have special activities planned.  If indoor is more your speed, our museums and galleries are offering up all kinds of fun things. Family Day also coincides with post-secondary reading week so it’s a perfect time for our student populations to take a well-deserved study break and enjoy what’s in their own backyard and maybe invite their family and friends to visit too.

Q.  How does Explore Waterloo Region promote this weekend?

A. Explore Waterloo Region continues to promote our area as the perfect location for a road trip.  For Family Day we specifically gear our campaign to families (naturally!) looking for a fun getaway.  We will have a variety of options promoted on our social channels and our website provides planning inspiration for visitors coming to the region and for locals looking for some cool things to do.

On Family Day itself, the City of Cambridge is offering various free drop-in activities for the whole family, including swimming, skating, sports, and fitness. 

The Cambridge Centre for the Arts will also be open that day from 1-4 p.m. and is offering a range of family activities. 

Business is built on relationships and networking is a key tool to make that happen.

But walking into a room filled with strangers can be very a daunting task, says Cambridge Chamber of Commerce President & CEO Greg Durocher.

“The whole trick to networking is understanding what you’re doing,” he says. “You’re not there to make a sale. You’re there to start building relationships because people prefer to do business with others they know, like and trust.”

The Chamber Social, held monthly at a various Members’ businesses, is a great place to build those relationships providing the commitment is there to attend often.

“It’s very much like learning to swim. You don’t learn just by jumping in the pool; you have to continually jump in, and it can be scary,” says Greg. “But the more you do it the more comfortable you become.”

He says by approaching a networking event as way to discover how you can help others can lead to success.

“It might just be offering a recommendation to help them solve a problem and that in itself is doing business. It’s not about being the salesperson, because you’re not selling a product or service, it’s about selling yourself and building a relationship to the point where people will start wanting to do business with you.”

To assist, Greg recommends attending networking events using a tag team approach.

“Tag teams are really important, especially for people who feel a little bit nervous if they’re attending an event where they don’t know many people.”

He says having a comfortable backup will not only give them someone to chat with, but also makes it easier to circulate at an event.

As well, Greg says having a good supply of business cards on hand – in pockets and the car - is vital.

“Having a business card is the authorization you’re giving people to collect the data that’s important to make contact with you,” he says, noting digital cards which utilize a QR code are also good to have. “The only problem with a digital business card is that people have to remember who it was they were speaking with and if they forget your name, it may take time to search it out.”

But when it comes to networking, Greg says ‘repeat, repeat and repeat’ is a must in terms of attendance to build a strong foundation of trust.

“You want to be that one person in the room that virtually everybody knows,” he says. “When you become the person they know, like and trust, that’s going to be your new salesforce because they are the ones who will be referring you and recommending you to others which makes good business sense.”

Put your networking skills to the test at our next Chamber Social which is at Staples, The Business Depot on Monday, Feb. 13 from 5-6:30 p.m

Networking tips:

• Introduce yourself by name and give them your card.
• Make your card memorable, but easy to read.
• Tag-teammates introduce you to people you don’t know but they do, and they get their network working for you too.
• Tag-teammates help one another and keep an eye out. If one is trapped in a conversation or left high and dry, the other can come to their aid.
• Tag-teammates can sing your praises much better than you can. It’s hard for you to launch into a story about yourself.
• Use your teammates name in conversation, this ensures everyone remembers their name.
• If your teammate doesn’t introduce someone to you, use ‘step forward rescue’ and stick out your hand and introduce yourself.
• When you enter a room of strangers, stop, and take your time, look around for the best opportunities, friendly groups, wallflowers and or acquaintances.
• Front of the room is the place to meet people or start a group.
• Approach networking by thinking about what you can do for someone else.
• Establish eye contact, extend a dry, warm hand, exchange cards, engage in conversation (weather, game)
• Great networkers work on building relationships and are known for being there.
• Keep track of events, and the number of contacts you make.  Set goals of events and contacts.
• Just being there isn’t enough, remember, you to need to exchange info. Be entertaining and informative.
• To be a good networker, you need be someone who’s good at following up.
• You need to learn something about people before you can discover what you can do for them. Ask questions, check their website, and talk with others.

Disruption has become a familiar word in many workplaces as organizations search for ways to conduct business amidst a never-ending barrage of economic and social upheaval.

It occurs when are there are major changes to a business’ structure, competition, facilities, the economy, and even world events.

But how a business manages this disruption will depend on its leadership.

“I would say as an organization and a leader you need to embrace it,” says leadership coach and consultant Ricardo Camara, who operates Cambridge-based On This Rock Business Consulting Ltd.

As a leadership development professional who deals with ways to minimize management conflicts within organizations, he is very aware of the many disruptions that can befall a business, noting the pandemic has been the biggest disruption most business leaders have experienced.

“It was like a rude awakening for all of us,” he says, noting the trends it has spawned such a ‘quiet quitting’ or ‘The Great Resignation’ has led to the attraction and retention of employees becoming key priorities for many businesses. “But we have always had both internal and external factors that have impacted in how we do business.”

He says complaining about disruptions can create a negative work culture, but that by creating an environment of collaboration and innovation with employees helps build a higher level of trust and engagement that will benefit an organization as it deals with these changes.

“COVID-19 is a good example where organizations brought their teams together and they collaborated and everyone was engaged in that fight,” he says, adding staff is the No. 1 resource of any organization. “So why not give them a voice and make them feel part of the process? By doing that, you’re encouraging them to engage and buy into changes. Otherwise, if you force those changes upon your employees, they’re going to fight them.”

He says leaders who fear disruption can often paralyze an organization.

“It can create a sense of despair and uncertainty and adds to that mindset.”

Also, Ricardo says for businesses to successfully manage disruption it helps to have a pre-existing environment where collaboration and trust were already in place, especially when faced with a situation like a pandemic.

“I think disruption can also be short-term, long-term or even permanent,” he says. “We’ve seen that with COVID as businesses had to pivot and quickly develop new business models.”

But when it comes to preparing for disruption, he recommends leaders focus on developing their emotional and relationship intelligence, allowing them to motivate their teams in a compassionate way and connect with them on levels that will benefit the business.

“Leaders that have developed a higher level of these skills are more likely, statistically speaking, to be better at leading, guiding and coaching, and dealing with these types of situations more effectively,” says Ricardo. “Whereas individuals who do not have these struggle and often pass on that fear and uncertainty to their teams, and it can quickly become a wildfire that spreads through the organization.”

A few tips for managing disruption:

• Think of disruption as an opportunity. Looking at disruption as an opportunity to create something better enables an organization as a team to move forward optimistically, and a better future.
• Devise a plan to manage disruption. Creating a plan reduces confusion and allows your organization to a create strategy and allocate resources and responsibilities.
• Communicate clearly and often. Consider holding town hall meetings, or one-on-one discussions because it’s vital to get in front of your team and working through the ramifications of disruption will be critical to your ability to engage and retain your key staff.

As businesses continue to look forward as they develop staffing plans to tackle 2023, they may also wish to take a quick look back at new policies that have now been added to the Employment Standards Act, 2000.

These include the right to disconnect legislation first unveiled in Ontario Bill 27 in December of 2021, and the electronic monitoring policy outlined in Bill 88, Working for Workers Act, 2022, and added to the ESA in April of last year.

The new policies – the subject of much discussion since they were first introduced - directly affect employers that employ 25 or more employees as of January 1 of any year and must be in place before March 1 of that year.

We reached out to Meagan Swan, an employment law expert at Pavey Law LLP in Cambridge, to offer insight on what these new policies mean for employers:

Q. What should employers be thinking about when it comes to timelines surrounding these ESA changes?

Meagan:  Employers were supposed to have these new policies in place last year, but as we know for some employers it takes a new year to really start thinking about what needs to be done in 2023. If an employer now has 25 employees, inclusive of all the employer’s business locations, as of Jan. 1, these policies are to be in place by March 1 of each year and provided to their employees within 30 days.

The government has been very reasonable about rolling out the new requirements and giving lots of notice in advance. As we start a new year, employers need to think, ‘do I now meet the employee threshold’ and ‘if I do, how do I create the right policy for my business’. 

The timelines each year do give employers a buffer to ensure they have any new policy reviewed before implementing them with employees.

Q. What are some of the steps employers should be taking regarding these policies if they haven’t already?

Meagan: The first step is to make sure they have the necessary policies in place by March 1 that work for their business. However, employers need to understand that these new policies do not give any new rights to employees. They are basically setting out what the expectations are when it comes to electronic monitoring and the right to disconnect. These policies are all about being transparent. 

An employer can tailor these policies to their business.  For the Right to Disconnect policy, an employer can outline the expectations for when an employee is required to review or respond to emails after hours or engage in other after-hours activities. 

An employer can also include exceptions in their policy to address urgent work that may arise. 

Communicating these expectations to employees is likely not new.  Rather, we are now requiring employers to have these expectations outlined in writing. I have seen some employers implement standard form policies – because there are lots of templates online – and then they end up restricting themselves more than necessary because many are very employee focused. 

These standard form policies don’t consider or address each employer’s specific business or its needs, so it’s important to obtain advice regarding the use of any template to see if it’s the right fit for your business. 

An employer should ensure their policy includes those exceptions and considerations needed for their own operations. Simply, an employer should consider obtaining professional assistance when creating their policies.

Q. What type of penalties could employers be facing surrounding lack of policy implementation?

Meagan: The government has not updated the regulations to include any specific penalties related to these new policies.  As of now, the standard complaint process to the Ministry of Labour is available to employees if an employer had not complied with its requirement to implement the policies.  This type of complaint will likely trigger a visit or communication from an ESA officer to investigate whether the employer is compliant.  If not, an Order requiring the employer to become compliant will likely be issued.

Q. Were there many changes to the Employment Standards Act in 2022 and did the pandemic play a role?

Meagan: COVID-19 has really pushed the government to implement new regulations through the ESA. For example, we had the Infectious Disease Emergency Leave (IDEL) regulation implemented to temporarily change the ESA rules related to reduction of hours, pay and layoffs.   We all know that the pandemic also required many employees to work remotely.  

Many of these employees began feeling the stresses of remote work and maintaining a balance between their home and work life. I believe the government was reacting to these pandemic related issues by implementing the requirement for employers to have Right to Disconnect and Electronic Monitoring policies in their workplace.

Many employers were hesitant at first and believed these polices would be onerous or would take away their ability to manage their own business.

But in reality, most of my clients have been able to implement policies that fit their business and it is now very transparent to employees what the expectations are for remote work and the monitoring of work.   

A new year has begun and with it comes challenges ahead for businesses.

Even though there are signs economic conditions are improving, such as a relatively fast drop in inflation and labour market additions, many small businesses are likely to feel the pinch of rising interest rates, the threat of a looming recession, and persistent labour shortages in 2023.

We reached out to Noah Jensen, a partner at Racolta Jensen LLP in Cambridge, to get a sense of what businesses can expect in the coming year:

Q.  What priorities or potential pitfalls should businesses wishing to expand in 2023 keep in mind?

Noah: Keep acquisitions open as an option. There are quite a few business owners with established businesses who are looking to divest themselves into retirement. Lower-mid market acquisitions (say, less than $10 million in value) are starting to see more supply than there is capital for private equity/investment firms to invest, especially on smaller deals. Acquiring an established brand with a customer list and team of trained employees that have complementary customers, production process, and/or supply chain partners can help achieve more scale by eliminating redundancies in the combined business after the acquisition is complete.

Avoid over-committing on cash, or over-hiring of employees. In the start-up world they   call this “lengthening the runway” by containing overhead costs. Labour is a fixed cost in the short-term and a variable cost in the long-term, be selective on who is being hired for what as many customers in the business-to-business landscape are being more thoughtful about purchases and many things are being delayed.

Q. How should businesses prepare for potential economic slowdowns this coming year?

Noah: Evaluate pricing. Costs have risen substantially in the past two years and there are still some businesses that have not adjusted their prices to their customers. If you have not changed pricing because your competitors have not changed theirs, you may have an issue with productivity to look at. If the market price has gone up and you have not changed your price, look at a price increase as an option. If your customers are unable to accept a price increase, look at the profitability of the relationship and consider not serving the client any longer.

Be clear on terms of payment with customers and suppliers to think through forecasting your cash flow over the next several months. Look into how this can be done with your accountant and/or bankers to see about a back-stop financing facility if needed. It is generally better to ask for financing facilities when your company is showing good financial results. You will not regret doing so now before things get too grim.

Think through your cost structure for any commitments to experiment with new products or services for your business that you thought would improve the productivity of your business. Are they all working? Is there anything that could be cut?

If you are in the business-to-business market, talk to your customers. What trends are they seeing from your competitors that they like or don’t like? How could you provide a better solution for them?

Do you have any redundant assets on your balance sheet? This would be assets that have no value to the operations of your company that have monetary value.

Q. Will this be a good year for businesses to make productivity investments?

Noah: Productivity investments will need to continuously be considered in today’s economic climate. Whether you are in dairy production or robotics, your competitors are purchasing equipment and/or software that is allowing them to get work done with less labour (a necessity in today’s labour market).

Q. How important is it for businesses to ensure they have a solid succession plan in place?

Noah: It is important to always consider the contingency plan of your business. If you are young with the intention of running your business for the long-term, failing to plan for what happens if you are suddenly disabled or facing terminal illness will put you and your family in a precarious position if any of those events transpire and you are unable to run the company. Certain insurance products mitigate the financial impact of this, but you still need to consider what shape your company will be in if you are eventually able to return to work.

If you are older and considering retirement, you should be thinking about this five-10 years out. Some considerations:

1. Customer concentration: try to avoid having a lot of revenue tied to one customer relationship
2. Supplier concentration: try to avoid having a lot of your inputs concentrated with one supplier.
3. Management aptitude: always be grooming someone else (or a couple of internal candidates) to do your job.
4. Cash flow: the valuation of the company is often determined on a multiple of cash flow. If you are selling at five times multiple, a $1 increase in cash flow increases your value by $5. So, make sure you are dialed in on profitability.
5. Structuring: the structure of corporations will make a difference in the taxation of the sale, and you should be thinking of this a couple of years prior to sale.

Q.  What should business owners consider if they are planning an acquisition in the coming year?

Noah: Be aware of market trends. With uncertainty in the system related to financing costs (interest rate driven) and risk tolerance of people investing in private companies, there will be ebbs and flows in the low-mid-market mergers and acquisitions environment.

According to a recent poll, 2022 Q4 had a pull-back in interest on the buy-side of acquisitions which could indicate that the bargaining power could tilt in the favour of buyers rather than sellers. We have seen a lot of interest in our existing clients wanting to sell. Mainly related to age/retirement.

Be aware of the quality of earnings that are presented. While many people had an amazing fiscal 2022, if you broke it down by quarters, they were increasing prices to their customers faster than they were adjusting their costs for labour. Additionally, certain industries would have been on fire during the low-financing cost era (residential/industrial construction, auto sector manufacturing), that will be facing downturns in the upcoming year or two.

Q. Will 2023 be a good year to start a new business?

Noah:  Every year is a good year to start a new business if you have a good idea or good contacts in a particular field. The difficult thing about right now is that people currently employed will probably be seeing the best of the best in terms of offers for their labour time and talents due to the shortage.

The upside to starting a business right now is that a lot of people throw in the towel when there is the amount of uncertainty as there is right now with the changing economic landscape. This creates new opportunities for people.