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There comes a time in the life of most businesses when its founder, or owner, decides it’s time to step away. In the case of family-owned businesses, it can be especially difficult and requires often frank conversations when it comes to creating a viable succession plan.

“You may assume the next generation is going to take over the business, but did you have that conversation with the children and does it algin with their vision? Is there alignment?” says Carlo Ciarmitario, Partner and Regions East Family Office Leader, KPMG Enterprise. “It really could get even more complicated with larger families with multiple family members where some are involved in the business, and some are not involved.”

According to a succession survey conducted by CFIB last year, at least 76% of Canadian business owners plan to exit their business within the decade resulting in over the transfer of $2 trillion worth of business assets changing hands during this period.

Couple this with the fact that only 1 in 10 (roughly 9%) have a formal succession plan in place to assist in the transition of the business and the economic landscape in Canada is in for major changes.

“Those discussions are tough discussions that not everybody wants to get involved with,” says Carlo, adding he spends at least 60-70% of his time in this area. “It’s really about the founder wanting to let go and they may not be ready to let go. For many of them, the business is part of their family, and they can’t fathom the idea that somehow they’re not going to be involved in the business going forward.”

However, he says having a communication framework is fundamental to all succession discussions and must involve everyone, including third generation family members if necessary.

“There can be a lot of emotions involved in that discussion,” says Carlo. “But I think people need to know that discussion has to happen.”

To assist, he offers the following information:

Q. Is having a clear succession planning something many SMEs often put on the backburner?

Founders may not be ready to let go. Many do not feel that the next generation is ready or even capable of running the business the way they have been operating the business.  Many of these owners started the business from the ground up and have been involved in every aspect of the operations: whether it’s relating to the hiring of staff, or the way the business operates, to working with the bank and investors on financing the operations and maintaining profitability. Things to consider:

1. Succession requires a communication framework and strategy for all parties involved.  It’s not as simple as the founders of the business say they are going to retire and that the next generation steps in.  A plan needs to be put in place on how the transition will take place, who will be succeeding the founders and the timing of the transition.
2. Many of the next generation family members are not prepared.  They do not understand their roles in the family business and the required accountabilities with accepting those roles.  This becomes even more challenging when certain members of the next generation are involved in the business while others are not involved.
3. Lack of a common vision between the various parties.  The founders may have a particular family member in mind to succeed them.  However, their vision may not align with the next generation:  Does the next generation individual want to be the successor?  How do the other family members feel about the succession plan?  This could lead to a lot of difficult discussions and conflict around sensitive issues.
4. The majority of the founder’s wealth may be tied up in the business. If they have insufficient assets outside of the business, they may be unwilling to let go as they are concerned that they will not be able to maintain the lifestyle they have been accustomed to.

Q.    What are the first few important steps towards creating a successful succession plan?

An estate freeze is a common succession planning tool but is part of the overall succession planning process. At a high level, an estate plan involves the founders freezing their current equity interest in the family business shares at today’s fair market value. 

This is typically followed by having a family trust, the beneficiaries of which would include the founders’ children subscribing for equity shares that will enable the future growth of the business to pass onto the next generation.  When structured properly, an estate freeze allows the founders to cap the taxes their estates will have to pay on death while transferring the future value of the business to the next generation. Things to consider:

1. Does the next generation want to be part of the family business?  An outcome of these discussions may be that family should sell the business rather than keep the business in the family which often is a difficult pill to swallow for the founders of the business who may have always envisioned the business being passed down from generation to generation;
2. If multiple children involved in the business, who should be the successor of the business?   These discussions will also involve how to deal with children who are not involved in the business.  Do each of the children get an equal share of the equity of the family business or does the future equity get allocated in a different proportion or do some children do not receive any equity in the business but are somehow compensated with other assets the family may have?;
3. Does the next generation of family have the appropriate skills, both operational and leadership, to successfully continue the business?  If not, the family may decide to bring in an independent third party who has the right skills and experience to run the family business;
4. How will future business and investment decisions be made?  Is the first-generation still making the key business decisions?  Or will decisions be made jointly by the first and second generation with the goal that over time the second generation of family will be making all key decisions;
5. Families will need to have discussions around implementing a governance structure. This ranges from having a Family Council Structure where all family members, owners and non-owners are involved, to an Advisory Board where input from individuals who are not part of the business can provide input on strategy and direction but the family still has the final say on decisions; to a formal Board structure which may include the appointment of outside third parties to lead or participate on the Board.

Q. When is the right time to create a succession plan? Are there signs to watch for?

There is no real right time to start a succession plan.  Just as the business did not grow over night your succession plan won’t happen overnight.  The process evolves over time

A good idea is to begin the process five to seven years prior to either selling the business (if that is what the family decides) or from the founder retiring/stepping back from day-to-day operations.  This will allow for enough time to affect a proper transition of the business or get it ready for a potential sale.

Q. Is creating a succession plan a difficult process?

The most difficult part is getting the conversation started as noted above.  The natural tendency is to avoid the conversation.  However, once the process gets started, most succession plans do have a positive outcome.  The key is getting everyone’s input and making the decision collectively.

The following piece is one of several appearing in the special summer edition of  our Insight Magazine celebrating Cambridge’s 50th anniversary as we recognize just a few of the people, businesses and institutions that have made our community great.

A variety of components are required to build a successful community.

Among these is a strong link to higher education, something Cambridge has been fortunate to have since its amalgamation courtesy of Conestoga College.

Founded in 1967 as Conestoga College of Applied Arts and Technology, it was among 22 community colleges established by the Ontario government between 1966-69 to provide diplomas and certificates in career-related, skills-oriented programs.

In the beginning, Conestoga College offered only part-time classes out of Preston High School as construction began on its Doon campus site in the south end of Kitchener, and by 1969 had already expanded by setting up Adult Education Centres in Cambridge, Guelph, Stratford, and Waterloo. It also began offering 17 full-time programs set up in portables at its Doon site to accommodate 188 students, with 67 of them attending its very first convocation in 1969.

But the college faced growing demand which resulted in the opening of a permanent campus in Guelph in 1970. Within a few years, not only did construction began on its Early Childhood Education Centre at its main Doon campus but the college also established its nursing program when the responsibility of four regional schools of nursing was transferred to Conestoga.

Throughout the next few decades as Cambridge expanded, the college continually added additional programs to keep pace with growing demands, to the point where it currently serves approximately 26,000 students (12,500 full time) through its eight campuses and training centres in Cambridge, Kitchener, Waterloo, Stratford, Guelph, Ingersoll, and Brantford.

Being designated in 2003 as one three Institutes of Technology and Advance Learning by the province, along with Humber and Sheridan colleges, opened even more possibilities for the college now that it could award degrees to students in its Mechanical Systems Engineering program and Bachelor of Architecture Project & Facility Management program. Additional degree programs were added in the years that followed.

“I think the college has come a long way because we have a vision, we have a purpose and we’ve been trying to get a little better,” said Conestoga College President John Tibbits, who took on the job in 1987, in a previous interview with the Chamber.

In the fall of 2006, he shared some of that vision when plans were unveiled for a proposed Cambridge campus to be located on a 136-acre site near Blair. According to an article published in the Cambridge Times that September, the campus was to become home to four centres of excellence with the consolidation of many existing engineering technology and industry trade programs from the Doon and Guelph campuses.

The cost for this venture was pegged at $47 million and would include a 200,000-square-foot building to house 1,600 students by 2009.

In the end, the college’s Engineering & Technology Campus opened on Fountain Street South in Cambridge in 2011. The 260,000-square-foot building – awarded a LEED (Leadership in Energy and Environmental Design) silver certification - not only houses innovative technology labs and shops, but the Institute of Food Processing Technology (IFPT) which features processing lines for beverages, baked goods, vegetables, and a food testing laboratory. This 8,000-square-foot plant is a one-of-a-kind learning facility in Canada.

A year later the college established its Centre for Smart Manufacturing, with funding from the Natural Sciences and Engineering Research Council of Canada, to provide students from various IT and engineering programs with a hands-on chance to work with industry partners in the robotics, automation, and manufacturing sectors.

In 2018, the Conestoga Applied Research Facility opened at 96 Grand Ave. South in downtown Cambridge and now plays host to the rebranded SMART (Smart Manufacturing and Advanced Recycling Technologies) Centre which made the move from the Doon campus. It now occupies 10,000 square feet of space in the historic Grand Innovations building for applied research with another 7,000 to 8,000 used to house the centre’s fully operational recycling plant.

“SMART Centre is all about engagement with industry and the ability for us, as subject matter experts in advanced manufacturing, recycling and digital innovation, to engage with students and industry partners to help solve industry challenges,” said Ignac Kolenko, Executive Director of the SMART Centre, in a previous Chamber interview.

However, the college made an even bigger investment in Cambridge when it transformed the former Erwin Hymer Group North America manufacturing plant into its state-of-the-art Skilled Trades campus.

The 250,000 square foot building on Reuter Drive, the former home to the BlackBerry repair centre, was purchased by Conestoga College in 2019 at a cost of $33.5 million with the aim to bring all its trade schools together under a single roof.

“It’ll give us a chance to have one of the most comprehensive and high-quality trades facilities in the province,” Tibbits told the Waterloo Record at the time. “This is a game-changer.”

The campus opened in 2022 and features more than 150,000 square feet of shops and labs designed and equipped to meet the unique requirements of trades education and training. Additional phases for the 40+-acre property are currently underway.

But the college’s commitment to education has also been matched by its ongoing commitment to the local community and its $1.5 million partnership with the City of Cambridge towards the creation of the Fountain Street Soccer Complex is the perfect example. The site will feature seven fields – four with natural turf and three with synthetic turf – as well as a 6,500 square-foot-service building.

“Conestoga has a long and proven history of working with our municipal partners to address local economic, social and workforce needs,” said Tibbits. “The college greatly appreciates our partnership with the City of Cambridge and with leading Cambridge employers such as Toyota, ATS and Eclipse Automation as well as with our many applied research partners and collaborators as we all work together to build a stronger, more prosperous community.”

Just the facts 

• Conestoga grads contribute more than $2.3 billion to the local economy annually
• 5,231 Ontario businesses are owned by Conestoga College graduates
• 4.8% of Conestoga College’s alumni are business owners (5,416 businesses owned by grades).
• Since 2018, more than 170 employers have relied on Conestoga College’s Corporate Training services to support the upskilling of their employees
• Nearly 55% of the local adult population has participated in Conestoga’s education and training opportunities
• The college welcomes 2,500 international students from 80 countries – largest number of students from India, with South Korea, China, Brazil, Central America, and Nigeria
• International students now represent 20% of full-time student population
• Nearly 80% of international students remain in Canada when they graduate
• More than 1,500 Conestoga students participate in applied research projects annually
• 96.6% of Conestoga grads live in Ontario, with 64.8% living in the local community

* Courtesy of Conestoga College

The following piece is one of several that appears in the special summer edition of  our INSIGHT Magazine celebrating Cambridge’s 50th anniversary as we recognize just a few of the people, businesses and institutions that have made our community great.

As dignitaries gathered for the ground-breaking ceremony of Toyota Motor Corporation’s much anticipated Cambridge assembly plant on May 6, 1986, the Waterloo Record reported that four windsocks painted to look like fish hung outside the tent where officials had gathered.

Called ‘koinobori’ or carp streamer, Toyota Motor Corporation’s late president Dr. Shoichiro Toyoda explained the significance of the gesture, noting the fish is known as one that fights its way, even up a waterfall.

“The carp streamer is used as a symbol of vitality for parents who wish good health and strong development for their children,” he was quoted at the time. “We have hoisted the koinobori here in the hope that our company will grow to become a business appreciated and respected by everyone as a whole.”

Nearly 40 years later, it’s clear this ‘hope’ for success has manifested as Toyota Motor Manufacturing Canada Inc. continues to be a major industry and economic leader, and community partner for Cambridge and southwestern Ontario as a whole.

From the moment the first Corolla rolled off the assembly line at its Cambridge facility shortly before 10 a.m. on Nov. 30, 1988, the company has continually succeeded creating hundreds of new jobs over the years through the expansion of new product lines.

Cambridge was selected from over 40 municipalities in Canada for the plant and federal government incentives were a consideration. Former Cambridge MP Chris Speyer, quoted in an article in the Dec. 12, 1985, edition of the Cambridge Reporter announcing the news, said there were incentives in the contract to encourage Toyota to buy Canadian parts and that the provincial government would contribute $15 million over five years toward a program to train Ontario workers.

“I’m extraordinarily proud of our community that Toyota would choose us to locate such a major enterprise. This is the happiest day of my political career,” he told the Reporter, before describing the “tremendous positive impact” the plant would have on the local economy, noting the average salaries at that time would range from between $25,000 to $30,000.

“Just think of what that means to housing in our area, to shopping and small business as well as the spin-off effect by other industries locating within our area in order to service Toyota,” said Speyer.

The Cambridge plant was expected, in the beginning, to produce 50,000 cars a year with the capacity to reach 100,000 when market conditions permitted, providing work for 1,000 employees.

In a Reporter article published a year before the plant opened, it was reported that a progress report indicated it would provide 1,000 direct manufacturing jobs that would result in another 2,000 new jobs in the automotive and service industry.

To date, TMMC now employs more than 8,500 people across its three production lines in Cambridge and Woodstock. In Cambridge alone, its North and South plants encompass three million square feet on 400 acres located at the corner of Maple Grove Road and Fountain Street North.

The company, which has won numerous awards recognizing it as a ‘top employer’ and ‘greenest employer’, continues to thrive and evolve.

In August of last year, it marked a special anniversary when a red Lexus NX 350h hybrid electric luxury SUV, rolled off the line in Cambridge representing the 10th million vehicle produced by TMMC.

“Today’s milestone speaks to how far Toyota’s manufacturing operations in Canada have come over the past three decades,” said TMMC President Frank Voss in a press release at the time. “In 1988, the year we opened our first plant in Cambridge, our team members built 153 Toyota Corollas and it took over 11 years to produce our first 11 million vehicles. Today, we’re Canada’s largest automaker and leading maker of electrified vehicles, building half a million Toyota and Lexus vehicles for the North American market every year. Our world-class team members have been trusted to build some of the most popular vehicles in North America and that’s something we’re very proud of.”

The following piece is one of several that appears in the special summer edition of  our INSIGHT Magazine celebrating Cambridge’s 50th anniversary as we recognize just a few of the people, businesses and institutions that have made our community great.

It’s been more than 50 years since the ingenuity and drive of two Cambridge men helped revolutionize filmmaking, setting the stage for millions of moviegoers worldwide to enjoy an enhanced experience every time they set foot inside a theatre.

It was the innovative vision of filmmaker Graeme Ferguson and businessman Robert Kerr, along with filmmaker Roman Kroitor and engineer William Shaw, which resulted in the creation of the IMAX film format and the success that followed.

Friends since childhood, Ferguson, and Kerr’s first ‘big’ collaboration was on a school newspaper at Galt Collegiate Institute. However, they took very different career paths with Kerr establishing a specialty printing company with his father called John Kerr and Son, and Ferguson, who developed a love for photography after his parents gave him a Baby Brownie camera at age 7, becoming a New York-based independent filmmaker.

Later, their creative drives would draw the pair together again when Ferguson reached out to his old friend, who at this time was serving as the youngest mayor of Galt (serving four one-year terms from 1964-67) and managing the printing company after he had sold it, to collaborate on a film for Montreal’s Expo 67.

The film, to be shown at the “Man the Explorer” pavilion, was entitled Polar Life and examined the lives of northern peoples in Canada, Lapland, and Siberia. It was to be featured on eleven 35mm screens and a continuously rotating audience platform. Kerr, who was known to enjoy making things with hands and discovering ‘elegant’ solutions to problems, welcomed the challenge.

“We had just enough experience to give us some confidence, and if didn’t go well, we still could recover,” Kerr once told a reporter. “We were very naïve, which probably saved us.”

The film was a success, along with another multi-screen film at Expo 67 called Labyrinth, co-created by Ferguson’s brother-in-law Roman Kroitor, who was also experimenting with screen technology.

When Kroitor received backing from film manufacturer Fuji to create another film for Expo 70 in Osaka, Japan, Ferguson, and Kerr joined the project and the trio each invested $700 to form their own company called Multiscreen Corp. – the forerunner to what would later become IMAX Corp.

“We had two filmmakers, which was one too many, one businessman, which was right, and were short in the engineering department,” Ferguson was quoted as saying. “We said to each other, ‘Who’s the best engineer we could hire?’ And it took us about one tenth of a second to say, ‘Bill Shaw’.”

William Shaw, who was an engineer at bicycle-maker CCM, came onboard and began working out the technical aspects to fine tune this new technology.

Together, over the course of the next two-and-half years, the group invented the 15/70 film format, commissioned the first 15/70 camera, built the first 15/70 rolling loop projector, and produced a giant-screen film called Tiger Child which opened at what was considered the world’s first IMAX theatre at Expo 70.

Ontario Place first permanent IMAX theatre

However, it wouldn’t be until the foursome brought their technology to the 800-seat Cinesphere at Toronto’s Ontario Place which became the first permanent IMAX theatre, that the full potential of their creative dream thus far would be realized. The landmark theatre opened May 22, 1971, showing Ferguson’s now classic film North of Superior.

The sky really was the limit after that when Ferguson struck up a collaboration with NASA to bring moviegoers into space by having astronauts trained to use IMAX cameras. Several very successful documentaries would follow that established the IMAX brand.

But even as the company continued to flourish, the pair remained close, even working on their boats together after he, Kerr and Shaw retired to homes on Lake of Bays after IMAX was sold to two American businessmen in 1994.

Kerr, who had served as the company’s Chairman, President and CEO from 1967 to 1994, continued to dabble in large format film, and after retiring from IMAX formed a partnership with Jonathan Barker to form SK Films. But prior to this, he also managed to serve a two-year term (1974-1976) as mayor of the newly-amalgamated Cambridge before joining IMAX full time but proudly wore his mayoral ring for the remainder of his life.

Among his many municipal accomplishments was the development of Mill Race Park, following the Grand River flood in 1974.  At the time, his mayoral predecessor Claudette Millar – Cambridge’s first mayor following the amalgamation – was quoted as saying: “If it weren’t for him, it could have been a blank wall.”

Later during his retirement, Kerr fostered his interest in the arts and education by supporting local artists, as well as in 1997 by endowing the University of Waterloo’s Stanley Knowles Visiting Professorship in Canadian Studies. He also bestowed bursaries at Cambridge secondary schools.

“I believe it is important for Canadians to increase our understanding of ourselves, our history, our special institutions and those qualities that contribute to a more thoughtful and compassionate nation,” he once said.

Kerr passed away in April 2010 at the age of 80. Ferguson, the last of the four IMAX founders, died in May 2021 at the age of 91.

According to a news report published in the New York Times upon Ferguson’s death, despite reading bleak reports throughout the pandemic regarding a shift in viewing habits and the growing allure of streaming services enticing moviegoers away from theatres, the Cambridge native wasn’t worried about what the future held for IMAX.

“He was completely convinced it would flourish even if the rest of the exhibition industry was going to do much worse,” his son, Munro, was quoted as saying in the Times, “because he believed that if you’re going to leave your house, you might as well go see something amazing.”

The following piece is one of several that appears in the special summer edition of  our INSIGHT Magazine celebrating Cambridge’s 50th anniversary as we recognize just a few of the people, businesses and institutions that have made our community great.

When Adam Warnock left his native Scotland for Canada in the mid-19th century, eventually settling in Galt in 1835, he would forever change the economic future of this community.

Known as a ‘man of prominence’ throughout most of his adult life, Adam Warnock’s entrepreneurial drive led him down several paths, including forming a partnership with James Crombie in woolen mills they operated in Preston and Plattsville. The Preston mill, known as Geo. Pattinson Company, became one of the town’s largest employers and one of the largest woolen producers in Canada.

It also set the stage for the creation of the Galt Knitting Company, where Adam Warnock was one of eight men known as ‘The Syndicate’, which set up shop after purchasing the former Robinson and Howell textile mill on Water Street in downtown Galt.

The company grew to greater prominence when his two sons, James, and Charles, took over upon his death in 1902 and began manufacturing a variety of knitted underwear, and eiderdowns shoe linings. After James died at a young age, Charles remained in charge until 1930, at which point James’ son Edward took the reins.

He was at the helm during the Second World War when the Galt Knitting Company created underwear for Canadian soldiers producing annually 360,000 units of blended wool and cotton fleece underwear.

But following the war, the company faced closure in the early 1950s due to various market forces and went into voluntary receivership in 1954. At this time, James Adam Warnock, Edward’s son, joined the business after high school and upon graduating from Ridley College put a plan in motion to revive the company.

Salvaging three out of four knitting machines during the liquidation of the Galt Knitting Company, he began work on a new line of men’s cotton briefs and shirts after renting a third-floor space of a four-storey building and hiring a handful of employees.

The company, known now as the Tiger Brand Knitting Company, remained small but was became successful thanks to his use of machinery and insistence of maintaining low overhead. Even more success followed when Tiger Brand no longer relied on manufacturing winter underwear and moved into the T-shirt stream, fueled by a surge in the market.

As the newly amalgamated City of Cambridge was unveiled Tiger Brand remained an integrated garment maker by producing its own textiles and clothing. It created its own branded fashion line called Non-Fiction and had contracts with a variety of large retailers, including L.L. Bean, Eddie Bauer, Cotton Ginny, Nordstrom, and The Gap.

By the time Warnock opened a new factory in Pincher Creek, AB, in 1977, Tiger Brand Knitting remained a bonified success and its peak employed 1,450 people and generated approximately $80 million annually in sales.

The company opened a warehouse in Oakland, Calf., in 1979 to serve the San Francisco Bay area and expanded locally into the former Riverside Silk Mills plant on Melville Street South near Queen’s Square – home now to the University of Waterloo School of Architecture- as well as the former Sheldon’s Inc. on Grand Avenue in the early 1980s.

A strong proponent for his employees, James Adam, whose tough exterior wasn’t as tough as it seemed according to many, opened and subsidized ‘Tigger House’ – an employee care centre. As well, he encouraged many of his immigrant employees to become Canadian citizens and provided English as a second language courses at the company. He often hosted Citizenship Courts at the plant.

But he also maintained a strong interest in the community and supported many charities and projects, including financing and organizing the completion of the outdoor amphitheatre along the Grand River behind Galt Collegiate Institute.

Also, prior to Cambridge’s amalgamation in 1973, served as a Galt councillor from 1968 to 1972, and as a member of the local hydro-electric commission between 1972 to 1974, and the Waterloo Wellington Airport (now Region of Waterloo International Airport) commission. As well, James Adam was active in the Red Feather/United Way campaigns and fundraised for the local branch of the Canadian Red Cross.

By the late 1980s he had slowly passed the company ‘torch’ to his children and stepped away completely following a near fatal car crash in Egypt.

He passed away from a heart attack in September of 2006 while on holiday in St. Petersburg, Russia, a year after Tiger Brand Knitting sold its factory to a numbered company which closed the plant to source its branded clothing line in China.

The company had been in bankruptcy since the fall of 2004 and the closure left 300 people out of work, according to the United Steelworkers in a piece printed in the Globe and Mail in April 2005.

The concept of a four-day work week has been gaining attention in Ontario, thanks in part to the decision by at least seven municipalities that are now offering their staff the flexibility of that option.

But the merits of such a system, which has become commonplace in many European countries including Denmark, Germany, Norway, and the Netherlands, is the subject of much debate among critics and advocates in North America.

While there are those who believe implementing a shorter work week is impossible in many sectors resulting in additional costs for overtime or hiring more staff, not to mention placing more stress on employees to get their work done in a shorter time frame, others insist such a system creates a better life balance and overall sense of wellbeing that can inspire increased productivity.

“There has been a lot of upheaval in workplaces which has opened the doors to rethinking arrangements,” says Ellen Russell, Associate Professor of Digital Media & Journalism at Wilfrid Laurier University and a labour market and economics expert.

She believes the next generation of employees may not understand the need to have arbitrary time limits placed on their work hours. “If there is not a reason then my guess is these future workers would really find it strange to be so arbitrary for no apparent reason,” says Ellen.

This is a subject Joe O’Connor, Director and Co-founder of the Work Time Reduction Center of Excellence (WTRCE), is more than familiar.

As the former CEO of 4 Day Week Global, which has been leading four-day work week trial programs with businesses worldwide, including 10 in Canada, he is a strong believer in the concept and through the WTRCE has been partnering with organizations to support their transformation to a shorter work week.

His organization is a proponent of reduced work hours schedules, not just a compressed model where employees are required to work 10-hour days four days a week.

“Arguably, post COVID-19 quality of life is now the new frontier of competition,” says Joe, adding for many workers it means more than compensation. “One of the things I have observed is the shift towards embracing shorter work weeks has happened at all three traditional layers of the organization.”

He believes business leaders have become more ‘open’ to it because they see the potential benefits in terms of attracting and retaining talent, and that many managers are more comfortable with this type of system because they are now familiar with measuring outputs rather the length of time people spend at their desk.

“For the employees, it’s really the demand effect. The value people have placed on time as a benefit has greatly increased because of what people experienced during the pandemic,” says Joe.

But he is quick to point out there is no ‘one size fits all’ solution when it comes to implementing a shorter work week.

“This is not something that should be implemented the same way from business to business, and industry to industry,” he says, adding in larger organizations work models could even vary between departments. “There will still be a need to facilitate different kinds of irregular work patterns based on business needs and employee preferences.”

Employee support is key says Joe when it comes to implementing such a drastic change, which means taking a hard look at how an organization operates, noting that introducing a shorter work week could be met with fear and skepticism.

“This is something that really works in organizations with very strong work cultures,” he says, adding going through a thorough evaluation process can galvanize a team as efficiencies are found so they can accommodate that addtional time off. “There is a real collectiveness at the heart of this and it relies on a commitment within teams and departments to find ways to change how they do things together to make it a success.”

Joe is confident within the next few years shorter work weeks will be the norm in sectors like information and communication technologies, software companies, and financial services. He also notes that two Canadian law firms, YLaw in B.C. and The Ross Firm in Ontario, have both switched to a four-day work week, something many in the legal industry deemed would be impossible due their current billing systems.

Joe says YLaw accomplished this shift by finding efficiencies in its operations and the latter firm did it by implementing a fixed fee billing system.

“My prediction is that in five years’ time, this is going to be the norm in some sectors and in 10 years it’s going to be more common than a five-day week,” says Joe, adding the potential is there to implement this concept in many sectors, including manufacturing. “I think there is an opportunity here for proactive leaders and strong organizations. Now is the time to really set yourself apart from the competition.”

Pros of a four-day work week

• Productivity may increase
• Workers can take care of medical and other appointments on their days off
• Recruitment and retention may be easier by offering flexible work hours
• Reduced stress and a better life-work balance, allowing employees more time for other activities and hobbies
• Commuting less by employees could have environmental benefits

Cons of a four-day work week

• For hourly paid jobs, employers should check if they will need to pay overtime if staff work 10 hours a day
• If may be difficult to find daycare open for a 10-hour day to meet childcare needs
• Working longer days or trying to complete tasks in a shorter timeframe could have health impacts
• This may not work for all industries, such as farming, customer service and restaurants
• Ensuring customer and client coverage can require scheduling employees over different workdays

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.

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.

You never know who will come up with the next ‘big idea’ that could change the world.

This has happened more than once in Waterloo Region, already dubbed ‘The Creative Capital of Canada’ thanks to HIP Developments President Scott Higgins and demonstrated by the local creation of such world-changing technological achievements as the BlackBerry and IMAX.

“This kind of creativity is the wheelhouse of the Chamber of Commerce,” says Cambridge Chamber of Commerce President & CEO Greg Durocher. “We always look down the road a generation or two because they are not only our community’s future leaders but our job creators for the rest of the 21st century.”

In hopes of nurturing that next generation of innovative thinkers, the Cambridge Chamber has teamed up with the Greater Kitchener Waterloo Chamber of Commerce and the BEP (Business Education Partnership) of Waterloo Region in a new innovative program called the ‘Youth Creativity Fund’.

Through this program, students in grades 5 to 12 can apply for seed funding to create a solution to a problem that faces them, their family and friends, or the whole world.

They can apply for $500 - $1,000 to help solve this issue and are required to report back to organizers in three months to tell them what they have learned from the experience.

“The great thing about this program is that it doesn’t matter if ideas are successful or not, we are focused on learning and simply trying ideas out,” says April Albano, Program Manager- Youth Innovation, who is leading the program through the BEP Waterloo Region (WR). “We want to build up creative confidence in youth from a young age. If students are given the opportunity to try out their ideas, they will be more confident to try out ideas later in their life. We have learned through research that creativity is something that we get worse at as we grow older unless we practice it.  We want to capture and nourish as much creativity as we can and help it grow in Waterloo Region.”

To help students bring their ideas to life, she says a toolkit (available at youthcreativityfund.ca) has been developed containing resources to get their creative juices flowing and generate creative thinking outside the box.

“We know youth have incredible ideas, but sometimes it takes some work to bring those ideas to life or even to mind,” she says, adding there is an opportunity to seek advice on specific aspects of their project.  “For example, we have had some students ask for assistance with coding an app they are working on.  Another group asked for help with grassroots marketing.  The BEP WR prides itself on connecting the business world with education and we have an extensive network of local champions who want to help.  If a student identifies a need, we will work with that student to find the appropriate support.”

BEP WR has given assets to local schools to promote the program and students are urged to listen for school announcements and check their school’s newsletter in the New Year.

“As we spread the word about this fund, we are aiming to be top of mind for every educator who has a student approach them with an idea to better their community,” says April. “We want these educators to say, ‘That’s a great idea, apply to the Youth Creativity Fund to make that idea a reality’.”

Also, students who may have multiple ideas are asked to submit one application at a time. However, she says they are allowed to apply again in the future if they want to further develop their initial idea.

“We want our kids to know that perseverance, dedication, commitment, passion, vision and yes, dreaming, are the key ingredients for creativity, innovation, and change,” says Greg, adding the Chamber is proud to be part of such a worthwhile initiative. “But we need everyone’s help. Both Chambers have foundation dollars that must flow to youth programs which has enabled us to help get this program off the ground. HIP Developments has pledged to match every single donation to a maximum of $100,000, so this just shows their commitment to our future leaders and innovators.”

April says this a great program to support youth, especially since many are entering the workforce when the world is facing numerous challenges.

“By investing in youth today we are helping to build up their creative confidence, so they feel empowered and ready to tackle the challenges of tomorrow,” she says.

Visit the Youth Creativity Fund to learn more.

When the first students arrive for class in September at Conestoga College’s skilled trades campus, they will quickly discover a unique learning environment.

“It’s going to be a living lab,” says Suzanne Moyer, Conestoga Dean of Trades and Apprenticeships, describing the 322,000-square-foot state-of-the art learning facility taking shape at the former site of motorhome manufacturer Erwin Hymer on Reuter Drive. “The infrastructure is such that areas are exposed so that students can see how the building was built. You can walk into a classroom and actually see the duct work.”

Suzanne says the building, the first part of a multi-phase plan for the campus to house all of Conestoga’s skilled trades programs, has been designed with a very ‘open and visible’ concept towards learning with 150,000-square-feet of space dedicated to shops and labs.

“There are lots of windows so if you’re walking through the building, you can see what’s happening in the shops and other students can also see what’s going on,” she says, noting the campus will heighten the college’s successful approach of providing hands-on and practical learning. “Conestoga College has always been an advocate for skilled trades and in the last 15 years or so, we’ve really grown the amount of programming we have in the skilled trades.”

The timing for this major move couldn’t be more critical since the need for skilled trade workers only continues to increase in Canada, with a potential shortage of 60,000 workers expected by 2025. Currently, an analysis of 56 high-demand trade sectors nationwide indicates a shortage of approximately 10,000 skilled trades workers – which could be as high as 100,000 if all 250 regulated trades in Canada are considered. As well, the federal government says approximately 700,000 trade workers in Canada are likely to be retired by 2028.

“In part, we’re definitely responding and aware of that need both regionally, provincially and federally,” says Suzanne, noting a key goal was to consolidate the programs currently offered among the college’s seven campuses at one central location. “With that you get more efficiencies, and you also get all the students in different trades working more closely together. There are many positive things that will come out of this by having everyone located in one area.”

She admits there have been hurdles, including the pandemic, supply chain issues and labour disruptions, that delayed the project after Conestoga College purchased the site in 2019.

“But we’ve continued to adjust and amend the schedule and work our way through,” says Suzanne. “For example, our HVAC, millwrighting and electro-mechanical programs were supposed to move into the building in September but now they are going to move in next spring and be ready for students in September 2023.”

However, this September the new campus will become home to several of Conestoga College’s many skilled trades programs, including electrical, plumbing, machining, carpentry apprenticeship, as well as its one-year multi-trade program which allows students to sample four trades.

“The students are very excited because it will be a new and full-service campus,” says Suzanne, referring to the features provided which include a library, food services, counselling services, academic supports, and student success advisors.

She says the timeline for when the rest of the campus will be developed depends on funding. The first phase has come with a price-tag of $110 million.

“A lot of factors play in to all that. But we definitely have the space to grow,” says Suzanne, referring to the 42-acre site.

She notes the reaction from the business community has also been very positive and says Conestoga College welcomes any opportunity for partnerships.

“We have all kinds of opportunities to partner together. We work with organizations to make sure it is a good partnership,” says Suzanne, adding financial and in-kind donations are important but there are other ways businesses can be involved. “For those not in the financial position to donate, we have program advisory committees for every one of our programs where members of industry provide us with guidance in terms of what’s needed in industry from our graduates.”

She says these committees meet twice a year and provide valuable input to ensure Conestoga College is offering the best programming possible.

“We’re always looking for volunteers to serve on our advisory committees and work with us to ensure our graduates are industry ready.”

To find out more, visit Conestoga College Skilled Trade Campus.

Drawing supplied by WalterFedy/Moriyama & Teshima Architects