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The Cambridge Chamber of Commerce handed out the hardware recently recognizing the achievements of the local business community.

The awards were presented in front of a sold-out crowd of approximately 360 business leaders and Cambridge/Township of North Dumfries officials at Tapestry Hall on Thursday, May 18.

“This event is such an important one for the Chamber because it gives us the opportunity to honour some of the amazing work our local business leaders have accomplished in the last year,” says Cambridge Chamber of Commerce President & CEO Greg Durocher.

The Business Excellence Awards is the Chamber’s premier event and has honoured the contributions and achievements of business leaders in the City of Cambridge and Township of North Dumfries since 2000, and features 11 award categories, nine of whom require nominations. In total, nearly 70 nominations were received.

Among these awards are Outstanding Workplace, Business of the Year, and New Business Venture of the Year which is aimed at both new and existing businesses.

“The awards event itself at Tapestry Hall also provides the perfect setting for business leaders to connect and reconnect, which only strengthens our community,” says Greg.

2023 BUSINESS EXCELLENCE AWARDS recipients

Business of the Year 1-10 employees award winner: Sousa Bookkeeping & Taxes

Being a good corporate citizen is anything but a chore for this award recipient, and in fact, quite the opposite holds true. When it comes to giving back to not only the community, but also its employees by creating a safe zone for everyone and rewarding them with nights on the town and bonuses, this company revels in the opportunity to help others and is always happy to show its appreciation for the support it has received. From donating to local food banks and Cambridge Memorial Hospital, to providing free and reduced rate tax services to low-income individuals and seniors – even offering free pickup and drop-off services - this company firmly believes community should always matter first.

Business of the Year 11-49 employees award winner: Central Industrial Solutions

The recipient of this award has developed a very diverse and loyal customer base thanks to its long-time commitment for providing the best service possible. This includes sometimes offering clients the least expensive option available because its highly motivated staff recognizes that it may be the best choice. This honest approach has built a foundation of trust among this company’s customers, many who have been loyal patrons for 20 years. Service remains a key priority for this company, which unlike many of its competitors, provides its clients with custom designs and a guarantee that their project will not fail to meet their expectations. Their commitment to loyalty also extends to their staff, whom they provide competitive wages and benefits, plus team-building perks to create a friendly and productive workplace environment.

Business of the Year 50 employees & over award winner: Gaslight Events Company Inc.

Big, bold, and innovative are just a few words that best describe the recipient of this award. During a time of great uncertainty, this company has continually experienced massive growth by sticking to its goal of being the best at what it does. It’s ability to adapt and grow, while staying true to its mission of creating a unique events space that celebrates and blends the local arts and the community, have remained paramount. In a short time, this company has quickly established itself as an important part of the community, which is especially apparent when crowds gather in Tapestry Hall under the breathtaking living piece of architecture known as ‘Meander’, or dine together in its new Foundry Tavern Restaurant, or share a pint in its Tap Room. While supporting local remains key for this female-owned company, supporting its growing staff is just as important which is why its female-led executive team has taken great strides to create an exclusive and supportive workspace.

Outstanding Workplace – Employer of the Year Award: Pur Balance Massage & Facial Spa

When it comes to creating a welcoming and supportive workplace, this company goes that extra mile to ensure its employees are presented with every opportunity available to succeed and flourish. Besides offering healthy compensation and bonus packages to reflect the current economic times, this organization continually seeks to support staff by fostering autonomy, providing flexible work schedules, interest-free loans, and additional training. This is a company that wants its staff to succeed both financially and intellectually and offers an array of supports and opportunities to make that happen. It’s a female-driven company that is committed to not only building and retaining a diverse workforce through mentorship, but by promoting a healthy and positive workplace through team-building events. Whether it’s enjoying each other’s company during a night out on the town or sharing clothing their children have outgrown with co-workers who have younger kids, the staff at this company know they are part of a very close-knit family who are more than willing to lend a hand to assist a colleague when needed. Besides building a foundation of camaraderie, this has also created a work environment where achievements and successes are celebrated among team members.

Marketing Excellence Award: Downtown Cambridge BIA

Using a very focused approach helped this award recipient attain some amazing goals in the past year. Thanks to some very captivating short-form video features that played well on Instagram Reels, filled with stunning visuals and narratives, this organization successfully promoted downtown businesses, events, openings, and campaigns to a much broader audience. Balancing this success by using other digital platforms, including Facebook and its website, as well as traditional media releases, allowed this company to experience substantial reach to bolster its message that downtown Cambridge is a very vibrant destination filled with attractions, among them a new outdoor gallery called The Galtway. In 2022 alone, this organization produced 55 Instagram Reels videos that garnered over 353,000 views, plus another 28,000 views on Facebook. This strategy, which resulted in a more than 30% increase in Instagram followers – many of them women – helped further their goal to shine a spotlight on all the great things that our downtown businesses have to offer.

Spirit of Cambridge award winner: Fibernetics Corporation

Helping to create an even better community is very important to the recipient of this award.

Through its unwavering support of several local initiatives, this company is creating a solid foundation for the next generation of residents to succeed and prosper, while at the same time demonstrating extraordinary community leadership. Among its ongoing commitments is a successful partnership with Food4Kids, a program that is near and dear to the hearts of its employees. In the past year alone, it donated just over $12,000 to this organization to assist in its efforts to provide students in more than 20 Cambridge schools with nutritious snacks – driving home the point that no child should go to school hungry. This past December, this company even matched its employees’ fundraising efforts dollar to dollar and donated more than $4,300 to the cause. It also supports a secondary initiative created by one of its own employees called Coffee4Kids to further benefit Food4Kids. Also, as well as sponsoring youth sports teams, this company also provides two days of paid volunteer leave to ensure its employees have ample chance to give back to their community, which makes it clear the spirit of giving is a priority to this organization.

Young Entrepreneur of the Year Award: Eric Johnson of Vitality Village Osteopathy and Wellness

A commitment to overall health and wellbeing, and community, are driving forces that continue to lead the recipient of this award to great success. An opportunity to volunteer with a falls prevention and stroke rehab program as an undergrad at university started this recipient on the path to entrepreneurship which later would result in Eric opening his own successful business in downtown Hespeler. Utilizing business in relation to his many skills – including founding his own landscaping business which he maintained until August of 2022 - has been a passion and has led him to achieve great success in a short time. According to many of his loyal clients, he is constantly trying to do better for his community and is proud his business gives people the opportunity to connect and find commonalities in hobbies, health, and goals. He and the team of health experts he has assembled under one roof provides the perfect setting for his clients to foster those connections.

New Venture of the Year award winner: Java Jax Good Roast Coffee Inc.

The recipient of this award is a great example of what a small business owner can achieve through passion and good old-fashioned hard work. After navigating through the litany of startup requirements so many new businesses face, not to mention undertaking a major construction project during a pandemic, this new business managed to bring its plan to fruition in a relatively short time. Creating a bright and comfortable setting – perfect for private dining or a quiet place to do some work – has helped this family-run business achieve steady success since opening its door in the fall of 2022. In that time, it has become a ‘go-to’ spot for many loyal customers by ensuring service remains its No. 1 priority and has done this by making a point of getting to know their clients not just by name, but by also by remembering their favourite dishes and drinks, and by adjusting its menu to reflect their requests and dietary needs. The growing number of its glowing Google reviews and Instagram followers are clear indicators the owners are on the right path as they continue to hone and enhance their business model, which featured special drink offers that were included in the ‘welcome baskets’ presented to new residents of the neighbouring condos in the Gaslight District – reaching more than 800 residents.

(Two recipients tied for the following award)

WoW Cambridge award winner: Homewood Suites by Hilton Cambridge/Waterloo

Providing good old-fashioned hospitality, not to mention a haven for people in need, made this local company stand out in 2022. Welcoming dozens of families that arrived in Waterloo Region as Government Sponsored Refugees, the employees of this organization left a lasting impression on a group of people looking for a new start, including many displaced by the war in the Ukraine, by treating them with kindness and respect. In turn, this has prompted many of these refugees to make Cambridge their permanent home. The employees accomplished this great feat by leading with their hearts and not any unconscious biases. It wasn’t always an easy task, especially when faced with outright racism against new Canadians from a small but vocal minority of people who took it upon themselves to criticize their efforts.  But they didn’t let this negativity deter them from helping others, so much so, their ramped-up service efforts went on to garner them a globally recognized travel award from Trip Advisor.

WoW Cambridge award winner: Jeff and Angie of Sun Variety

The continued kindness shown by the recipients of this award has made a lasting impression on many of the customers who visited their variety store. But it was one good deed that stood out and didn’t go unnoticed in the community that set them apart. It involved a long-time customer who was having mobility issues. Realizing he was having an issue, out of general concern, the recipients of this award took it upon themselves to purchase him a four-pronged cane which immediately improved the quality of his life and enabled him to return to their store.

Chair’s Award: Graham Mathew Chartered Professional Accountants

The recipient of this award has continued to be a valuable community partner to countless organizations since it first went into business more than 50 years ago. This is a company that values the importance of creating an economically strong, healthy, and vibrant community, and knows that giving back is key to make that happen. They always walk the talk which is why they are the true definition of a good corporate citizen. Among their many achievements is ongoing support to the Cambridge Memorial Hospital Foundation and since 1995 have donated approximately $130,000 to this worthy cause, as well as sponsoring CMH events to ensure we have the best equipped hospital possible. In fact, they played a pivotal role in the WeCareCMH Campaign in 2017, which raised more than $10 million towards the purchase of vital equipment. But their support doesn’t just include the community’s physical health but extends to its cultural health also which is why this company has been a been a big financial supporter of Drayton Entertainment since the Hamilton Family Theatre Cambridge first opened its doors in 2013.

As well, this award recipient also continues to do its best to ensure our community’s most vulnerable are not forgotten and is an ongoing champion of the Cambridge Shelter Corporation in its work to help those in need, not only sponsoring the region-wide Hockey Helps the Homeless fundraiser but by providing this organization with expert accounting assistance.

However, these are just a handful of the organizations and causes this company quietly supports behind the scenes. Others include, to name just a few, the Cambridge Food Bank, United Way Waterloo Region Communities, Porchlight Counselling & Addiction Services, Food4Kids, and YMCA Three Rivers. This award is all about going above and beyond, which is something this company does nearly daily and for that, as a community, we couldn’t be more thankful.

Community Impact Award: Terry Kratz of HFK MacRae & Wilson LLP

Community and prosperity are two words that clearly mean a great deal to the recipient of this prestigious award. Born and raised in Waterloo Region, Terry Kratz has seamlessly blended his knack for numbers with his passion for volunteering by continually assisting various initiatives and organizations that help make our community an even better place to work, live and play. Throughout his very successful accounting career, which has included a partnership for more than a decade at Ernst & Young, our award recipient has always been willing to step up to assist organizations and causes in need.

The quiet, steadfast, and realistic approach he uses in his professional career has been a huge benefit to the many groups who are fortunate to have him in their corner. From his past involvement with the Grand River Film Festival, Cambridge Community Foundation, and Cambridge Library & Gallery, to his current work with the Cambridge Symphony Orchestra, his commitment to ensuring these organizations and others like them flourish has never wavered.  So, it’s no surprise he is often the first person to step up to lend a hand. He also remains driven to ensure our community succeeds economically. In the 1990s he played a pivotal role in the creation of the city’s much talked about strategic plan called ‘Our Common Future’, as well Chaired the Cambridge Chamber of Commerce’s Board of Directors. In fact, his relationship with the Chamber has continued as Board Treasurer for the last 20 years allowing him to work very closely with its key officials in their efforts to assist our city’s business community grow and prosper. Also, his love of exploring new lands has made him an integral part of making our Travel Program a success, leading dozens of adventure seekers to exotic locations worldwide. He is a true community champion who never stops making an impact.

Labour shortages remain the persistent challenge for both the corporate sector as well as small business owners who insist the lack of skilled and unskilled workers is the biggest impediment to increasing sales.

These shortages are expected to get worse as baby boomers retire, despite the fact the participation rate in the labour market appears to be higher. According to an analysis piece last month in the Globe & Mail, as of February, that participation rate – the proportion of the population 15 or older that is working or looking for a job – was 65.7% which is the same as it was in April 2018.

But when it comes to finding people to take on leadership roles, the outlook is much more positive, says leadership coach and expert Julie Dupont, Principal Strategist and Owner of Cambridge-based Reimagine Leadership.

“Filling leadership roles hasn’t been a struggle as much as trying to fill the technical or skilled talent roles,” she said. “People are usually happy to step up into a higher pay cheque.”

However, with that promotion also comes immense responsibilities which Julie says not all people are able to handle.

“Being a leader requires a different set of skills and mindset,” she says, noting some organizations often struggle to get the right people to fill the right roles. “And when they have them, there’s always this fear they are going to leave.”

To mitigate that fear, Julie says personal development is imperative and investing in leadership training will benefit the organization.

“You want to spend the money where it counts and that is on your people right now because they need to see there is a future for them,” she says.  “Leadership skills are an investment in long-term success. If an organization makes you feel unvalued, it hurts.”

Among the most important skills are the ones centred around emotional intelligence, which includes self-awareness, self-management, social awareness, and relationship management.

“These skills are so crucial right now because people need to understand themselves and discover what their triggers are and if they’re going to be resilient,” says Julie. “They need to be able to figure out if what they do works, or if what they do gets in the way of them being successful.”

She says an employee can be great at the technical side of their job, but as a leader may not be much of a ‘people person’ and will struggle.

“It’s about creating that employee-centred approach and is about valuing each and every person in your care,” says Julie, noting that mindset shift can be very difficult for many people but that times are changing. “We are moving slowly in that direction but it’s a big ship and doesn’t turn on a dime.”

In terms of making that change, she says identifying your strengths as a leader is key and reiterates the value of training to create a foundation to help leaders succeed.

“When people feel a little more positive in their abilities, they’re likely to give themselves the grace of making better decisions,” says Julie.

Five skills to developing good leaders:

• Communication: Great leaders must be great communicators. We need people who can learn when to listen, ask the right questions, and speak words of encouragement and motivation to their staff. These skills can be taught.
• Accountability: Not only do we need to keep emerging leaders accountable we also need to teach them how to hold their team members accountable. Many emerging leaders have never been taught the skills necessary to manage staff and earn their respect.
• Time management: Moving people up in our organizations without giving them the skills to manage all the projects, paper and people in a timely manner will lead to burnout or, worse, a broken home life.
• Servitude: Great leaders serve their people by removing roadblocks to their staff’s success. We need to teach our leaders strategies to empower their people by supporting their efforts.
• Mentorship: Great leaders mentor and coach their team members so they can be successful. This isn’t a skill that comes naturally for many people. It needs to be taught.

•    Source Troy Media

The Ontario government will launch a first-of-its-kind program June 1 to make free naloxone kits (and free training) available at workplaces where there is a risk of staff witnessing or experiencing an opioid overdose.

In 2022, there were 2,521 confirmed probable opioid deaths in Ontario, which represents a 12% drop in cases compared to 2021. Despite this, the number of deaths last year remains substantially higher compared to what was observed prior to the pandemic (2017-2019).

Naloxone is a life-saving medication that can temporarily reverse an opioid overdose, restore breathing within two to five minutes, and allow time for medical help to arrive.

“Ontario, like the rest of Canada, is in the middle of an opioid epidemic made worse by a toxic supply of recreational street drugs,” said Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development, when the program was first announced last year.

According to a report released last summer by researchers from the Ontario Drug Police Research Network (ODPRN) at St. Michael’s Hospital, one in 13 opioid-related deaths in the province between 2018 and 2020 occurred in the construction sector. The reasons behind this, say researchers, are a complicated mix of pain management, job insecurity and having nowhere else to turn.

Bars and nightclubs have also seen increased opioid usage and accidental overdoses, often because of recreational drugs laced with deadly opioids such as fentanyl and carfentanil.

For up to two years, Ontario will provide free nasal spray naloxone kits to businesses at risk of opioid overdoses through the Workplace Naloxone Program and free training needed to equip staff with the tools to respond to an opioid overdose.

Businesses can determine if they are eligible for the program and find additional information on accessing naloxone kits and training at Ontario.ca/workplacenaloxone. Once the requirement is in effect, Ministry of Labour, Immigration, Training and Skills Development’s inspectors will take an education-first approach to enforcement.

We reached out to Tushar Anandasagar and Hina Ghaus at Gowling WLG to provide some legal insight as to what this new legislation will mean for some businesses:

Q. What prompted the Province to introduce this OHSA legislation?

A. The province is recognizing that the ongoing opioid crisis is affecting workplaces across the province – something needed to be done.

Opioid overdoses may be preventable or possible to delay (to an extent) – the province has adopted the role of educating employers on steps they can take to recognize and reduce the severity of overdoses.

These measures also have the effect of reducing the load on the healthcare system – the province is pushing for early triage and prevention rather than escalation.

We’re already doing many of the same things when it comes to allergies – for instance, many workers with severe allergies are already carrying around EpiPens.

Many social changes start at the workplace – there is a good chance that we will start to see this protocol (or something similar) extending beyond the workplace.

The opioid crisis is ubiquitous - we have already seen other provinces discussing the adoption of similar requirements for workplaces.

Q.  Is there a possibility the free training and access to the kits could be extended beyond two years and could funding be provided by another source?

A.  Definitely. Our sense is that this is just the start.  There are numerous benefits associated with early prevention rather than treating severe overdose cases via the healthcare system. A stitch in time saves nine.

Q. Are workers legally required to make their employers aware they could overdose?

A. Not by operation of statute – the onus is on the employer to spot a potential health and safety issue and create systems to make the workplace as safe as possible.  Of course, nothing prevents a worker from voluntarily disclosing a substance use disorder to their employer. Aside from statute, employers may be able to establish early warning systems via fit for duty policies – such a policy would require the employee to report to work while not under the influence of an impairing substance. Employers are then responsible for enforcing the policy.

Q. What kind of privacy issues come into play with this legislation?

A.  An employee’s disclosure of a substance use disorder is considered strictly confidential information – the employer should be prepared to treat this information as it would any other medical information received from an employee

Appropriate protections should be put in place to safeguard the information – shared with only those managers or supervisors who “need to know”.

These issues, and sample scenarios, are discussed in the province’s updated guidance on naloxone in the workplace:  https://www.ontario.ca/page/naloxone-workplace

Q. What are potential concerns surrounding this legislation, if any, that managers of workplaces deemed as at-risk should be aware of?

A. There are risks associated with non-compliance with the OHSA – for instance, primary liability may result if the employer doesn’t run through a naloxone kit risk assessment to determine if there is a risk of a worker overdosing at work.  Every employer is required to do this.

There are also risks associated with running a deficient risk assessment or ignoring risks that come to the employer’s attention – for instance, an employee self-discloses that they have a substance use issue, and the employer does nothing.

Another consideration is what could possibly happen if a worker administers naloxone and the recipient has, for instance, an allergic reaction – as per the province’s current guidance, the Ontario Good Samaritan Act should kick in to relieve workers of liability when they are administering naloxone in good faith.

Q.  What should be the first steps an at-risk workplace should take when it comes to introducing this program?

A. Every workplace needs to run through a naloxone risk assessment – employers may wish to engage a third party to demonstrate that they have done this, as needed.

If naloxone risks are detected during the risk assessment, the employer should plan for implementation by referencing the OHSA guidance published by the province – this will necessarily mean engaging with staff, the OH&S rep, the JHSC, etc.

There are specific training requirements which need to be in place, which have been referenced within the province’s guidance. As needed, the employer should also prepare to procure naloxone kits – there may be free naloxone kits available depending on the sector the employer operates within.

Q. Can workplaces not deemed ‘at-risk’ access the program?

A.  All workplaces can access the Province’s guidelines and training resources. As for the free naloxone kits and on-site training, we know the Province is initially focusing on high-risk workplaces. In future we may see an expansion of the training programs and free kits to non-high-risk environments.

Q. Is it difficult to make changes to the OHSA?

A. Yes and no – some changes are met with objection from employers (and employer associations), trade unions, and other stakeholders (e.g., fine increases, doubling of limitation periods, etc.). It really depends on the type of change that is being made.

Q.  How will compliance of the legislation be monitored?

A. Effective June 1, 2023, we can expect standard MOL audits for employers – they will ask about naloxone kits in the same way that they currently ask about harassment policies, etc. There may also be acute responses triggered by workplace accidents – for instance, if there is a serious workplace accident and there is some indication that substance use disorder may have contributed to the situation, the employer’s risk assessment may be called into question, and they may be found not to have complied with these new OHSA requirements if they failed to identify reasonably apparent risks.

Once again, employers will need to be mindful of proving that they have undergone a risk assessment (document, document, document), particularly if they have concluded that there is no risk in the working environment.

Excitement is building for Business Expo 2023.

This popular trade show, which hasn’t been held since 2019, returns to Bingemans on May 10 and will feature more than 200 exhibitors and at least 1,500 attendees from throughout Cambridge, Kitchener-Waterloo, and Guelph.

“This has always been a great opportunity for local businesses to not only showcase what they do but meet and network with other business leaders,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “It also will provide job hunters, entrepreneurs and businesses the chance to make professional connections.”

Business Expo 2023, co-sponsored by the Cambridge, Kitchener-Waterloo, and Guelph Chambers of Commerce, is free for the public to attend and will also feature many local food and beverage vendors. It runs from 2 p.m. to 7 p.m., providing ample time to check out the displays.

“All three Chambers are pleased to have the chance once again to be able to work together on this event which gives attendees the opportunity to really learn about some of the great local businesses we have,” says Greg.

For businesses taking part in the trade show, he says the quality of their displays can make or break the experience for them.

“Exhibitors new to trade shows tend to focus on the flashy; they want to create displays that will draw crowds,” he says. “But that’s not the point. It’s not the number of people your display draws that matters; it’s whether or not your exhibit engages them when they’re there.”

To maximize your networking at Business Expo 2023, here are a few tips:​

• Neatness and visibility - Keep your display neatly organized and clearly mark all your prices.
• Build Demand - Spark customers’ interest by placing a sold sign on a few items, or by leaving a display spot empty.
• Be Interactive - Contests, prizes, demonstrations, games, and quizzes will generate interest in your display.
• Offer Takeaways - Provide visitors with a small item they can take home with them.
• Clear Signage - Ensure basic information and prices are clearly visible for visitors.
• Literature - Stock up on brochures and fliers, as well as price sheets and business cards.
• Be Business Ready - Make sure you have pens and order forms ready to process potential sales.
• Engage With Visitors - A friendly welcome and the proper body language can go a long way.
• Always Be Open - Ensure your booth is never left empty.
• Follow Up Promptly - The faster you send out emails or make a call the better it is for your business.

A recent report released by the Conference Board of Canada indicates Waterloo Region’s economy will be slower this year but predicts it will outpace the provincial economy.

While the impact of a potential slowdown is a concern, one of the key issues for local businesses remains a shortage of workers.

The unemployment rate in our region hit 5.5% in 2022, compared to 6.5% in 2021 and 9.6% in 2020. This year, it’s expected to reach 5.8%.

Provincewide, the latest numbers from Statistics Canada showed there were 372,000 job vacancies during the third quarter of 2022, nearly double the average of vacancies (195,000) reported during the three years leading up to 2020.

In effort to provide local employers with another avenue to find talent, the Cambridge Chamber of Commerce recently launched its online job portal.

“Labour shortages continue to be an issue in so many sectors,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “By providing as many opportunities as possible for local employers to find the help they require is a benefit to our business community as a whole and we’re glad to be able to offer this service.”

The easy-to-use portal can be accessed by the public to search and apply for positions posted by Chamber Members in a variety of sectors. 

Chamber Members can upload and manage their own posts, which includes contact information and job descriptions.

The system allows job seekers to search for positions in Waterloo Region and the surrounding area.

Current posts feature jobs in several sectors, including the financial, insurance, medical and automobile industries.

“It’s a very user-friendly system giving our Members the ability to post multiple job opportunities,” says Greg, noting the Chamber does not manage the posts itself.

Visit the Cambridge Chamber of Commerce job portal to learn more.

A few facts and figures:

• In Waterloo Region, the employment rate in 2022 rose by 10,700 jobs (3.3%) to a record 332,140, compared to an increase of 15,250 jobs (5%) in 2021.
• Overall employment is in our region is expected to increase by 1% this year due to 4,250 jobs in finance, insurance, and real estate, as well as 3,300 jobs in manufacturing.
• 60% of the job vacancies in Ontario require no more than high school education, paying on average less than $20 an hour. 
• Nearly 200,000 jobs require less than one year of experience.
• More than one-third of the job vacancies are in sales and service.

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.

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.

The past few years have been turbulent ones for local businesses.

But amidst the stress and uncertainties due to economic and labour challenges, many have managed to flourish thanks to the fortitude of their owners and operators.

This is why the Cambridge Chamber of Commerce is encouraging business leaders to celebrate themselves at our annual Business Excellence Awards.

“It’s important – especially now - that we recognize and celebrate the achievements taking place in our business community and the people who’ve made them happen,” says Cambridge Chamber of Commerce President & CEO Greg Durocher. “These awards provide the ideal chance to show our appreciation to local businesses for all they do to make our community even better.”

The Business Excellence Awards is the Chamber’s premier event and has honoured the contributions and achievements of business leaders in the City of Cambridge and Township of North Dumfries since 2000, and features 11 award categories, eight of whom require nominations.

These include Outstanding Workplace, Business of the Year, and New Business Venture of the Year which is aimed at both new and existing businesses.

“Maybe it’s a business that has created a whole new line of products?” says Greg. “Or maybe it's a business that has become very innovative in the way they operate due to staff changes or shortages?”

Also, he says there may be businesses out there that have successfully enhanced their workplace culture, even remotely.

As well, Greg says there are businesses that should be recognized because they have found ways to help the community, even during this tough time.

“There are many companies who’ve been very generous with their profits and have helped others,” he says, encouraging businesses to nominate themselves. “There may be others who are not aware of what your business has accomplished. Now is the time to share your story.”

The awards will be held May 18 at Tapestry Hall. Nominations close Feb. 24.

Click here to make your nominations.  

Award Categories and Criteria:

Spirit of Cambridge Award – This award recognizes an outstanding effort and commitment to making Cambridge and/or Township of North Dumfries a better, more prosperous community through corporate leadership and social responsibility.

Business of the Year (1 – 10 employees) – This award is given to a good corporate citizen who exhibits a competitive edge through technological innovation in one or more of three following areas: customer service; workplace environment, products and services, growth in business, employee retention.

Business of the Year (11 – 49 employees) – Given to a good corporate citizen who exhibits a competitive edge through technological innovation in one or more of three following areas: customer service; workplace environment, products and services, growth in business, employee retention.

Business of the Year (More than 50 employees) – This award is given to a good corporate citizen who exhibits a competitive edge through technological innovation in one or more of three following areas: customer service; workplace environment; products and services; growth in business; employee retention.

New Venture of the Year Award –  This award is presented to a new or existing business that through innovation of design and technology has significantly improved the esthetics and functionality of their operation.

Outstanding Workplace – Employer of the Year - The recipient of this award goes above and beyond to ensure it provides employees with the best overall workplace, with a strong focus on a happy and healthy work culture and environment.

Marketing Excellence – This award is presented to the business or organization that has best demonstrated excellence, innovation, and originality in traditional or new-media marketing.

Young Entrepreneur of the Year Award – The recipient of this award is presented to the director/owner aged 18-40 of a new or existing business who has achieved outstanding results by successfully building it up to a new level.

WOWCambridge.com Customer Service Award - Each month the Chamber has recognized an individual at a business who has gone above and beyond, providing extraordinary service in everyday situations. These individuals and the businesses they work for exemplify service excellence. This award is presented to one of those monthly winners as the Grand Award Winner.

Community Impact Award - This award recognizes an individual who has contributed, or continues to contribute, to the overall prosperity, economic growth, or vibrancy of our community through their business, volunteer or philanthropic endeavours, and exemplary overall service to assist others.

Chair's Award - The Chair's Award recognizes an outstanding organization or individual who makes an exceptional effort which goes above and beyond the call of duty in any area of business and/or community development.

The living wage in Waterloo Region has increased to $19.95 an hour, according to the latest report from the Ontario Living Wage Network, which represents an increase of $2.75 from 2021.

But what impact this hike has on businesses that are certified living wage employers, or those considering a certification, continues to be weighed.

“It depends on the nature of the business,” says Jason Dean, Assistant Professor of Economics at King’s University College at Western, who also teaches at Wilfrid Laurier University, and notes that maximizing profits is the key focus of any business. “Any economist would tell you that profit is good in the sense it ensures as a society that our scarce resources are used efficiently, so without profit, we would not have that.”

However, Jason says increasing wages can be done in a way that it can boost the bottom line of a business.

“In principle, if you do it right, it can be a benefit to business,” he says.

Sabrina McGregor, Branch Manager, YNCU in Cambridge, agrees.

“By providing a living a wage, we’re helping reduce stress as many have struggled with increased costs,” she says. “Our employees are very important to us; we want to make sure they have the tools to thrive inside and outside of work.”

YNCU is one of about a dozen businesses in Cambridge that are certified with the Ontario Living Wage Network, which charges annually between $100 to $1,000 depending on the size of the private sector business. (Lower rates apply for public sector businesses and non-profits).

“We want all of our workers to feel empowered by their employer so they can flourish in our communities,” says Sabrina, noting taking this step helps improve health and morale within the workplace.

Stephanie Soulis, founder, and CEO of Little Mushroom Catering, which has provided a living wage to employees since 2017, says it’s something that has always fit nicely within her business plan.

“When we started out, we knew we wanted to be a socially responsible business in that paying a living wage makes sense. It fits our culture,” she says, adding she does understand why businesses with many part time workers would find it hard to justify an hourly rate of $19.95. “But I’m also one of those businesses. I have a lot of 18-year-olds who work for me and are living at home with their parents, and they still need to pay car insurance and try to save up money so they can move out.”

Sabrina says the minimum wage is not a living wage and providing one can help companies save on things like vacant positions, training, and recruitment.

“It should be helping with things like retention and talent attraction. We’d like to think it does but there is definitely a labour war going on,” says Stephanie, noting more restaurants and event companies are now paying higher wages. “In the last four or five months we’ve noticed a big shift. But even with the minimum wage being $15.50 and living wage now $19.95, there’s still that middle ground where other restaurants and event companies are going to pay a bit more than minimum wage – say around $17 – so we still have a bit of that leading edge advantage.”

As well as attracting more talent, she says being part of a growing network of businesses has resulted in her company being sought ought by others, both in and outside of the network.

“We have many companies, especially non-profits, who want to work with us because we are a living wage employer. It’s not just for talent attraction, but client attraction as well,” she says, adding that education is key before any business decides to become a certified living wage employer. “It’s about weighing the pros and the cons.”

Breaking it down

What is a living wage?

“There is no universal definition. It is essentially a poverty line with specific characteristics,” says Jason. “Generally, a living wage is the hourly wage that reflects what people would need to earn to cover the actual costs of living in their particular area. A popular definition: A living wage is a socially acceptable level of income that provides adequate coverage for necessities such as food, shelter, child services, and healthcare. The living wage standard allows for no more than 30% to be spent on rent or a mortgage and is sufficiently higher than the poverty level.”

Why are businesses hesitant about offering a living wage?

“Businesses exist solely to make profit. Which can be a good thing as this is good for society as a whole because it ensures our scarce resources (labour, land, natural resources etc.) are used efficiently which is translates into a higher standard of living,” says Jason. “Many business owners do not believe their goal is to alleviate poverty and would suggest that this is the role of the government. Moreover, most businesses that pay a non-living wage (such as the minimum wage) have narrow margins and probably would not be able to pay a living wage even if they wanted to.”

Can increasing the minimum wage to a living wage help alleviate poverty?

“Likely not,” says Jason. “It is also important to point out the following statistics from a Fraser Institute Study: 8.8% of all workers earn the minimum wage; 92.3% of minimum wage earners live in households that are above the LICO (Low Income Cutoff); most minimum wage workers are not primary breadwinners: and 53% of all minimum wage workers are between the ages of 15 and 24.”

What advice can you offer businesses who are considering about taking this step?

“It can be profitable to pay higher wages in an effort to boost productivity and reduce turnover,” says Jason. “Efficiency wages: refer to employers paying higher than the minimum wage to retain skilled workers, increase productivity, or ensure loyalty.”