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Buying an existing business can be a strategic move that saves an entrepreneur a substantial amount of hard work and offers numerous advantages over starting or expanding a current venture from scratch.

Purchasing an existing business offers a head-start in terms of market presence and brand recognition, while building a brand from scratch requires extensive time, effort, and resources. However, buying a business with an established brand allows the new owner to capitalize on existing customer loyalty and market reputation, something Carson O’Neill, Managing Principal of Rincroft Inc., a local firm which facilitates the sale of medium-sized businesses, believes. 

“What I like about goodwill is that you have repeat customers and it’s not necessarily something you will see on the income statement,” he says. “Goodwill is sort of an elusive thing but it’s important that you have customers coming back. Even in this electronic and digital age, we are creatures of habit and if I go into a store and somebody goes that extra mile, at least with me, I will remember that.”

It is also one of many things to consider when it comes to purchasing an existing business, says Carson.

Another key consideration for those seeking to purchase an existing business is establishing clear parameters, in terms of the industry they wish to buy into and the size of the business. 

“Ideally, the buyer should have a background and relevant expertise in the industry which brings value to the business they are buying,” says Carson. “Buyers are often so enthusiastic they want to come out of the gate with their foot on the accelerator without understanding where the tracks are. I wouldn’t encourage people to buy a business in an industry they know nothing about.”

Emotions can cloud 'good judgment'

He says emotions can sometimes play a role in the decision-making process, which in turn can cloud “good judgment”, noting it can take at least six months from start to finish to complete a business sale.

“It can be very costly if you buy the wrong kind of business and it’s not like trying to get another job,” says Carson. “If you have your money sunk into a business that doesn’t work out, it’s a very different thing.”

Buying an existing business can save hard work by minimizing the risks associated with start-up ventures. Start-ups face a high failure rate, with many new businesses failing within the first few years of operation. By purchasing an existing business with a proven track record, entrepreneurs can mitigate some of the risks associated with starting a new venture. This can provide greater peace of mind and increase the likelihood of long-term success.

“What you hear about are the successful start-ups. The media loves to talk about somebody who started a business in their family room on a computer, or was making something in the garage,” says Carson. “What you don’t hear about is the number of business failures.”

That’s why he recommends to his clients looking to expand their business by integrating it with another or those getting into business for the first time, to find an owner who is nearing retirement but prepared to remain involved through the transition of ownership to ensure continuity is maintained. 

“If the owner feels welcomed in the transition, the buyer is less threatening,” he says. “It’s more of a seamless transition.”

While the acquisition process may be easier to navigate for an established medium-sized business that has the resources to undertake a new venture, Carson says many business purchases are often first-time experiences for both parties.

“You’re dealing with people on both sides of the street trying to come together,” he says. “That’s why the basics are important and they both bear that in mind because they are trying to get a friendly deal.”

Essential tips to consider when buying a business:

Define Your Goals: Whether it's to expand your existing operations, enter a new market, or pursue a passion, knowing your goals will help guide your search and evaluation process.

Industry Research: Understand market trends, competition, and potential growth opportunities. This knowledge will help you assess the viability and potential success of the business.

Financial Analysis: Review financial statements, cash flow projections, and historical performance. Consider hiring an accountant or financial advisor to help assess the business's financial health and value.

Due Diligence: Perform thorough due diligence to uncover any potential risks or liabilities associated with the business. This includes reviewing contracts, leases, licenses, and legal documents. Consider hiring legal experts to assist in the due diligence process.

Assess Assets and Liabilities: Evaluate the business's assets, including inventory, equipment, intellectual property, and customer contracts. Also, assess any existing liabilities, such as debts, pending lawsuits, or tax obligations.

Understand the Reason for Sale: Determine why the current owner is selling the business. It could be due to retirement, health issues, or declining profitability. Understanding the reason for sale can provide insights into the business's condition and potential challenges.

Evaluate Management and Employees: Assess the competency and experience of the existing management team and employees. Consider whether you'll retain key personnel post-acquisition and how their departure might impact the business's operations.

Customer Base and Reputation: Consider factors such as customer loyalty, satisfaction levels, and brand perception. A strong customer base and positive reputation can contribute to the business's long-term success.

Legal and Regulatory Compliance: Ensure the business complies with all relevant laws, regulations, and industry standards. Verify licenses, permits, and regulatory approvals are up to date. 

Negotiate Terms and Purchase Agreement: Seek legal advice to ensure the agreement protects your interests and addresses key aspects such as price, payment terms, warranties, and post-acquisition support.

Seek Professional Advice: Consider seeking guidance from experienced professionals, such as business brokers, lawyers, accountants, and financial advisors. Their expertise can help navigate the complexities of buying a business and increase the likelihood of a successful acquisition.

The weight of responsibility can be overwhelming for business leaders.

They are constantly under pressure to drive growth, manage teams, make critical decisions, and ensure their organizations’ long-term success, which is something Debra Burke, Head of Client Success at H2R Business Solutions says has only been magnified in the recent years.

“Since the pandemic, some things have really changed. They changed during the pandemic and somewhat again since then,” she says, referring to a rise in negative conflicts which can lead to a toxic environment and even workplace investigations. 

“We’re seeing an unbelievable amount of those kinds of problems coming into play in organizations and have leaders coming to us because they’ve never had to deal with them before but are dealing with them much more often.”

She says employees have become more empowered with information, and that many are dealing with mental health issues and feeling ‘angry’.

“They may not be working with the same expectations in their jobs that they used to and for some people, there are more challenges as they deal with downsizing, and shifts,” says Debra, adding bigger workloads, and hybrid work situations could be adding to these stresses since they may no longer ‘align’ with what an employee wants.

As a result, she says many leaders are now seeing more employees who are willing to take employers to court, or a human rights tribunal, or filing a report with the Ministry of Labour.

“Leaders who may never really had many people issues to deal with are now finding they are faced with all kinds of these things just to keep the business going,” says Debra. 

She says the challenges can vary between the several generations of employees that are now in the workplace, noting there are still many benefits of having a multi-generational workforce despite potential issues.

Leadership can be isolating

“For a leader, becoming someone who has to manage all these things that come to play and the nuances and potential conflicts, plus the lack of time and resources, it’s very challenging,” says Debra. “When someone says being a leader can be a very isolating place, they are not wrong.”

She says leaders must first watch for warning signs and realize they don’t have all the answers.

As the demands of leadership continue to mount, it is vital for leaders to discover effective strategies to ease their burden and navigate their roles successfully, which Debra says can start with better communication.

“As a leader, you have to get comfortable with communicating. Employees want messaging and they want to hear it from the owner, CEO, or an executive,” she says, adding that a communication breakdown is often the key cause of any conflict, and that lack of management training could be the root cause. “When you do a job well and get promoted to management, that doesn’t necessarily mean you’re going to be a good people manager.”

As well, Debra says leaders can benefit from expert support from others who may have experienced the same issues they are facing, even those outside of a leader’s particular industry.

“I’m not a big fan of coaching for your own industry. You can receive a lot of benefits from working with a diverse support group,” she says. “Even if you feel like you’re an introvert CEO or leader, you might be really surprised how much that support is going to mean to you.”

And while some companies and industries are dealing with tight budgets, Debra says investing in training can pay off big time for a leader professionally and personally, as well as the organization.

“Those things are going to trickle down through an organization in powerful and impactful ways,” she says.

Several strategies to lighten the burden of leadership

Delegation and empowerment

Many leaders fall into the trap of trying to do everything themselves, fearing that no one else can handle the responsibilities as well. However, effective delegation distributes the workload and fosters team development and growth.

By entrusting capable team members with tasks and responsibilities, leaders can free up valuable time and mental energy to focus on strategic decision-making and higher-priority matters. Delegation is not just about offloading tasks but also about giving team members the opportunity to contribute and grow.

Building a support system

Establishing a support system of mentors, advisors, or fellow business leaders can provide valuable guidance and emotional support. Sharing experiences and seeking advice from those who have faced similar challenges can be invaluable.

Additionally, leaders should foster a culture of open communication within their organizations. Encouraging team members to share their thoughts and concerns can lead to more collaborative problem-solving and reduce the burden on the leader.

Embracing technology and automation

Automation can handle routine tasks, data analysis, and reporting, allowing leaders to focus on strategic initiatives. Investing in technology solutions that align with the organization’s goals and processes can significantly reduce the administrative burden on leaders. Moreover, data-driven insights can aid in making informed decisions and staying ahead of market trends.

Setting realistic goals and expectations

While ambition is essential, setting achievable goals and expectations is equally crucial. Unrealistic targets can lead to stress and burnout, as well as erode team morale. Leaders should work with their teams to establish realistic objectives and timelines. This approach fosters a sense of accomplishment and helps prevent the exhaustion that can result from chasing unattainable goals.

Continuous learning and development

Continuous learning and professional development are essential for effective leadership. Leaders should invest in their own growth by attending seminars, workshops, and courses relevant to their industry. Also, encouraging team members to pursue their own professional development can contribute to the organization’s success and ease the burden on leaders.

In the changing landscape of business, where uncertainty and rapid change are constants, effective leaders must adeptly manage chaos to ensure organizational resilience and success.

Navigating through tumultuous times requires a strategic and agile approach, says Linda Braga, Business & Executive Development Specialist with LMI Canada, which has provided leadership development for more than 50 years.

“I think there’s still a lot of uncertainty out there,” she says, referring to issues that now exist in workplaces surrounding remote working, labour shortages and retention. “I think leaders are still adapting to managing the workplace and the whole side of leading and actually developing their people because we are successful through our people.”

Unfortunately, Linda says developing employees now often takes a ‘backseat’ as company leaders navigate these issues, some of which have been magnified by major shifts in the workplace.

“There are four generations in the workplace right now and each come with different attitudes and different viewpoints,” she says, noting older employees prefer having that ‘physical’ presence in the office while younger ones are looking for more of a ‘social’ connection. “It’s about leaders being flexible and adaptable, and having more of an open mind to solicit feedback from their people. Empathy is huge right now.”

However, this could prove to be difficult considering statistics show that at least 60% of small and medium-sized businesses owners are aged 50 or older and many will soon be leaving their companies, making it harder for some to adapt to these dramatic workplace shifts before they retire.

Self-care important

To manage the chaos effectively, Linda leaders should first look at how they manage and lead themselves.

“I think it’s important they are able to put on their own oxygen masks first because they’re very busy dealing with the day to day trying to keep their companies running and keeping their employees happy,” she says, adding ‘self-care’ is something they should take seriously.

Linda says often leaders have difficulty asking for assistance, especially from their employees.

“Just because you’re a leader or manager, or a company owner, doesn’t necessarily mean you have all the answers and know everything,” she says. “That’s what I feel separates really good leaders from managers is that they empower their people.”

As well, when it comes navigating uncertainty and rapid change, setting goals is key for leaders.

“It’s important for our leaders and managers to have crystal clear goals, which they need to communicate,” says Linda, noting there is a big difference between efficiency and effectiveness. “They can be really good at being effective and doing things the right way. But are they doing the right things? Even as a leader, are you hitting your own goals? All leaders should be able to look at themselves in a mirror and be self-aware.”

Some key methods for business leaders to manage chaos:

Develop a Resilient Mindset:

Successful leaders should acknowledge that change is inevitable, viewing challenges as opportunities for growth rather than insurmountable obstacles. Embracing uncertainty allows leaders to respond with flexibility and creativity.

Establish Clear Communication Channels:

Leaders must provide regular updates, share relevant information, and foster a culture of open dialogue. Clear communication helps employees understand the situation, reduces anxiety, and builds trust in leadership.

Prioritize and Delegate Effectively:

Leaders must prioritize activities based on their impact on the organization's core objectives. Delegating responsibilities to capable team members ensures that tasks are handled efficiently, preventing overwhelm at the leadership level.

Encourage Adaptability:

Business leaders should encourage employees to embrace change, learn new skills, and remain agile in the face of uncertainty. An adaptable workforce is better equipped to navigate chaos and contribute to innovative solutions.

Invest in Technology and Automation:

Leveraging technology and automation can streamline processes and enhance organizational efficiency. Implementing digital solutions allows businesses to adapt quickly to changing circumstances and minimizes the disruptions caused by chaotic events.

Build a Diverse and Inclusive Team:

A diverse team brings varied perspectives and skills to the table, enhancing the organization's ability to address challenges creatively. Inclusion fosters a collaborative environment where team members feel valued, increasing their commitment to overcoming chaos together.

Conduct Scenario Planning:

Business leaders should engage in proactive scenario planning to anticipate potential challenges and devise strategies to address them. This foresight enables quicker and more effective responses when chaos unfolds, reducing the negative impact on the business.

Cultivate Emotional Intelligence:

Leaders with high emotional intelligence can navigate uncertainty with empathy, providing support to their team members and maintaining a positive organizational culture.

Learn from Mistakes:

Successful leaders acknowledge mistakes, learn from them, and apply those lessons to improve future decision-making. This adaptive learning approach contributes to organizational resilience.

Strategic Resource Allocation:

Business leaders must strategically allocate financial, human, and technological resources to areas that will have the most significant impact on maintaining stability and achieving long-term objectives.

As technology continues to rapidly evolve, businesses are increasingly turning to Artificial Intelligence (AI) to streamline operations, enhance efficiency, and gain a competitive edge. 

There is no question surrounding the benefits of integrating AI into business processes, but there remain legitimate concerns that accompany this technological leap.

One primary concern is the ethical implications of AI implementation. As AI systems such as ChatGPT, ClickUp, Copy.ai, or Kickresume become more sophisticated, they often require access to vast amounts of data to function effectively. This raises questions about privacy and the responsible use of sensitive information, as well as legal concerns surrounding the use of intellectual property.

“The question is fair use or is it a violation of copyright,” says Maura Grossman, Research Professor, School of Computer Science at the University of Waterloo, whose expertise centres on AI policy and ethics. 

She notes that an AI user can reference a particular article, book, or poem, despite it being copyrighted.  “It shouldn’t be able to do that because that’s a copyright infraction, but it can. The law hasn’t caught up with that yet but there are a number of legal cases now pending.”

Algorithms a concern

As well, Professor Grossman says bias in AI algorithms is another major concern. AI systems learn from historical data, and if that data contains biases, the algorithms can sustain and amplify them resulting in discriminatory outcomes and reinforcing existing social disparities.

“You’re going to find that in the language as well as the images. Open AI has spent a lot of time trying to remove toxic language from the system, so you get a little bit less of that with ChatPT,” she says, referring to the problems Microsoft experienced when it released its Tay bot in March 2016. The bot, under the name TayTweets with the handle @TayandYou, resulted in Twitter (now known as ‘X’) users tweet politically incorrect phrases and inflammatory messages resulting in the bot releasing racist and sexually charged messages in response to other users. Initially, Microsoft suspended the account after 16 hours, erasing the inflammatory tweets and two days later took it offline.  

“Most systems, like ChatGPT, are trained on the internet and that has its pluses and minuses,” says Professor Grossman, adding ‘hallucinations’ pose another big problem for AI users. “ChatGPT for example is trained to generate new content and to sound very conversational, so it uses what it has learned on the internet to predict the next most likely word. But that doesn’t mean it’s telling you the truth.”

Official policy needed

She says there have been instances of people using AI to conduct legal research and submitting bogus case citations in court. “I think the first case happened recently in B.C., but it has also happened all over the U.S.,” says Professor Grossman.

For businesses utilizing AI, she recommends drafting an official policy to outline usage.

“First they need to have a policy and then need to train who in the business is going to use AI because people need to understand what it does well and doesn’t do well,” she says. “Your policy needs to say what permissible uses are and what impermissible uses are.”

Impermissible uses could include creating a deep fake video in the workplace.

“Even if it’s a joke, you don’t want employees creating deep fakes,” she says, noting the policy should also outline what workplace devices can be used for AI. “If you need to save something because you’re involved in a lawsuit, then you don’t want to it be on an employee’s personal device because you won’t have access to it.”

Employees require training

As well, Professor Grossman also recommends employees clearly know what AI tools are okay to use and which are not and ensure they are fully trained.

“You don’t want them violating intellectual property rules or other privacy rights. You also don’t want them putting into a public tool any confidential or propriety information,” she says. “Some companies have turned off the ability to use these AI tools because they are terrified employees will put propriety information out there while asking a question about a problem they are working on. If you’re using one of these open-source tools, it’s like Google or anything else; it’s free rein.”

Professor Grossman says rules and regulations around AI will be gradually strengthened, noting a new regulation coming into play in B.C. pertaining to issues surrounding intimate imagery is just one example.

“As soon as this starts making its way more into politics, we will start to see more effort into creating regulations,” she says, referring to a recent ‘deep fake’ image that surfaced of U.S. President Joe Biden.

Despite these issues, Professor Grossman says AI is something more businesses will become comfortable using and should embrace this new technology. 

“It will save on efficiency,” she says, noting AI can greatly assist in the creation of marketing material. “Companies need to explore it and learn about it but learn about it in safe ways and understand where it can be beneficial and not just let people experiment on their own because that’s going to lead to a lot of trouble.”

AI hurdles in business

• Data Quality and Availability: AI models require vast amounts of data to learn and make accurate predictions. However, businesses often struggle with data quality issues, such as incomplete, inaccurate, or biased data. Additionally, accessing relevant data across various sources and systems can be challenging.
• Data Privacy and Security: With the increasing emphasis on data privacy regulations businesses must ensure that AI systems comply. Protecting sensitive customer and business data from unauthorized access or breaches is crucial.
• Lack of Skilled Talent: There's a significant shortage of professionals with expertise in AI and machine learning. Hiring and retaining skilled data scientists, machine learning engineers, and AI specialists can be difficult and expensive.
• Integration with Existing Systems: Integrating AI solutions with existing business processes, legacy systems, and IT infrastructure can be complex and time-consuming. Compatibility issues, scalability concerns, and resistance to change within the organization can hinder successful integration.
• Interpretability and Explainability: AI algorithms often operate as "black boxes," making it challenging to understand how they arrive at specific decisions or predictions. Lack of interpretability and explainability can lead to distrust among stakeholders and regulatory compliance issues.
• Ethical and Bias Concerns: AI systems may inadvertently perpetuate biases present in the data they were trained on, leading to unfair outcomes or discrimination. Ensuring fairness, transparency, and accountability in AI decision-making processes is essential.
• Cost and ROI Uncertainty: Implementing AI solutions involves significant upfront investments in technology, infrastructure, talent, and ongoing maintenance. Businesses may struggle to justify these costs and accurately measure the return on investment (ROI) of AI initiatives.
• Regulatory Compliance and Legal Risks: AI applications in business must comply with various industry-specific regulations and standards. Failure to meet regulatory requirements can result in legal liabilities, fines, and damage to the company's reputation.
• Change Management and Cultural Resistance: Introducing AI into the workplace often requires significant cultural and organizational changes. Resistance from employees, fear of job displacement, and lack of understanding about AI's potential benefits can impede adoption efforts.
• Performance and Reliability: AI models may not always perform as expected in real-world environments due to factors like changing data distributions, unexpected scenarios, or adversarial attacks. Ensuring the reliability and robustness of AI systems is crucial for business applications.

In the fast-paced world of business, the success of any organization hinges on the quality of its workforce. Hiring mistakes can be both expensive and detrimental to a company's growth and stability, especially in this changing job market which is now seeing an influx of potential candidates in certain fields.

“I really do feel that the market over the last year has softened,” says Lisa Marino, Senior Recruitment Specialist with H2R Business Solutions, noting there are always a handful of roles that are specialized resulting in fewer available candidates.

Her colleague Sue Benoit, Head of Recruitment Services at H2R Business Solutions, agrees.

“On the trades side there still is a labour shortage, especially since those types of roles are really hard to fill,” she says. “But if you have an accounting or bookkeeping role to fill there’s 100 plus applicants.”

As a result, finding the right person to fill those types of positions means putting systems in place that can help you avoid potential pitfalls, such as taking too long to decide on a potential hire which is a common mistake many employers make, says Sue.

“If they’re taking too long in the decision or interview process, they can lose that great candidate who might have been hard to find in the first place,” she says. “Then it it’s a matter of having to start over a lot of the time because employers are not going to just settle, necessarily.” 

As well doing their due diligence regarding reference checking, her colleague suggests making a select group of others in the company part of the hiring process.

“Bring in one or two other people from the company into the process rather than letting the hiring manager do it all because somebody from another department may be instrumental helping you gain a different perspective of the candidate,” says Lisa, adding incorporating some of type of skills testing during that process, depending on the level of the role, can also be helpful. “It can give some insight of how a candidate thinks.”

She also says once a candidate has been hired, an employer should be diligent when it comes to monitoring the performance of that person during their 90-day probationary period and watch for potential ‘flags’. These can include absences, struggling to meet deadlines, or an overall disconnect with their new workplace or colleagues.

“Hopefully, the recruiter is good enough to catch some of those flags in our pre-screen conversations,” says Sue. “How interested are they in the organization? Have they done any research? Employers really want someone who is truly interested in what they’re doing.”

Tips for avoiding hiring mistakes

Define Clear Job Requirements

Before posting a job opening, employers should thoroughly analyze and document the skills, qualifications, and experience necessary for the role. This not only ensures that candidates are well-informed but also assists in filtering applicants more effectively.

Create a Comprehensive Recruitment Strategy

Develop a well-thought-out recruitment strategy that includes a timeline, sourcing channels, and a structured interview process. By outlining the steps from job posting to offer, employers can maintain control and consistency throughout the hiring journey.

Leverage Technology

The use of technology can significantly streamline the hiring process, from applicant tracking systems (ATS) to video interviews. These tools help in organizing candidate information, assessing qualifications, and conducting efficient interviews. 

Thoroughly Assess Cultural Fit

A candidate might have an impressive resume, but if they don't align with the company culture, it can lead to a discordant team dynamic. Incorporate questions and assessments during interviews that delve into a candidate's values, work style, and how well they would integrate into the existing team.

Conduct Behavioural Interviews

Conducting behavioral interviews allows employers to gain insights into how candidates handled situations in their previous roles. This approach provides a more realistic preview of a candidate's capabilities.

Check References Thoroughly

Reach out to previous employers, colleagues, and supervisors to gain a comprehensive understanding of the candidate's work ethic, reliability, and interpersonal skills. A candidate's performance history can reveal valuable information that might not be apparent during interviews.

Utilize Probationary Periods

Implementing probationary periods for new hires allows both the employer and the employee to assess the fit within the organization. This trial period provides an opportunity to evaluate job performance, integration into the team, and adherence to company values before making a long-term commitment.

Invest in Continuous Training for Hiring Managers

If possible, equip hiring managers with the skills necessary to conduct effective interviews, assess candidates accurately, and make informed decisions. Continuous training on fair hiring practices, diversity, and inclusion can help mitigate biases and enhance the overall quality of hiring decisions.

This blog represents the second part of a two-part series on protecting your business. 

Operating a business is difficult enough in the current climate, especially as business leaders navigate ongoing economic, labour and supply chain issues. 

As a result, keeping their businesses secure and safe from potential criminal threats may not be front and centre, suggests John Burdett, President of Seamless Security Inc. in Cambridge.

“Times are difficult for everybody and there are cost pressures for everybody,” he says. “Security is typically not the first thing people want to spend money on, but at some point, if people are calling me, they realize they do have a need for it.”

That need appears to be becoming more apparent, taking into consideration local crime statistics. According to the Waterloo Region Police Service (WRPS), since January 2023 to the start of December 2023, officers responded to 21 reports of robberies at commercial properties – not including banks or financial businesses – and 338 reports of commercial property thefts, excluding shoplifting incidents. The WRPS’ 2022 annual report indicates a total of 286 robberies.

At the Chamber’s Conversations That Matter lunch Jan. 25 at Tapestry Hall (Tap Room), former Waterloo Region police chief Bryan Larkin, now Deputy Commissioner, Specialized Policing Services RCMP, will discuss the impact crime rates have on the local business community. 

“Many of my clients are larger warehouse and distribution facilities, but I’m seeing the issues with them going down and issues with smaller businesses going up,” says John. “There seems to be less internal theft issues and a lot more external theft issues happening these days.”

But when it comes to security systems for smaller businesses, he recommends operators may wish to start small.

“You really want to know how you’re going to use your security system, especially if you don’t have one already,” says John, adding having an expandable system is a good course of action. “You can always add to it later if you have the right system in place. People don’t have to necessarily spend the bank on their system. But, if you have millions of dollars of inventory to protect, you’re probably going to spend a bit more.”

He says deterrence is a key factor for many businesses when it comes to selecting a security system.

“Anything to try and get that person to ‘move on’ before they commit the crime is going to be the optimum outcome,” says John, explaining he works closely with potential clients to determine their specific needs. “A few tweaks to what you already have may be sufficient to achieve your goals. It depends on the issues you’re trying to combat.”

That ‘tweak’ could also include procedural changes to the way a business operates which he says could minimize the threat of potential losses.

“What do you keep on site? What is visible from the window? What type of lighting do you have? There are all sorts of these types of factors that come into play,” says John, adding a theft may be less detrimental to the business compared to the after-effects. “A business could be out of business for a couple of days while they replace windows, or if their point-of-sale systems have been smashed. This could have a bigger financial impact on the business than the actual theft itself.”

Security tips for businesses

1. Check Doors and Windows

Consider installing doors made from reinforced wood or steel. If your doors are made from glass, roll-down safety gates may be an option. You could also consider reinforcing frames with metal plates and reinforced strike boxes. If you have a room where a safe or other valuables are stored, consider investing in stronger interior doors for these areas.

?2. Upgrade to Smart Locks

For an added alarm system, smart locks can help as a measure for improved access control. As an additional benefit, smart locks can keep access records, so you know who is accessing which door at different times.

3. Install Alarm Cameras

With strategically placed cameras, you can capture important evidence against potential shoplifters, violent criminals, vandals, burglars, and employees that may commit crimes. Also, CCTV cameras offer considerable value because they are one of the most effective crime deterrents. 

4. Manage Valuable Assets

You could rethink your practices when it comes to handling cash. When you consider expensive equipment or high-value inventory, you need to think about how you store these items and anything of exceptional value should be kept out of sight from the windows when the business is closed.

5. Improve Exterior Lighting

Consider adding lights in areas that are dark and make sure your side and back exits are well lit. Installing motion lights in areas that do not see much traffic may also help. Smart lights can mimic the activity of an occupied structure, and this will give burglars the impression that there are people there when the building is empty.

6. Nightly Safety Protocols

Set a specific routine for closing time and teach it to any employee who may need to close the business for the night. Your nightly safety protocols should consist of checking and locking all doors and windows, securing valuable assets, checking different areas of the property for small business security issues, setting the wireless alarm, and more.

7. Install Affordable Alarm Systems

Even if your business already has an alarm system, you may want to consider its age. Surveillance system technology has come a long way in the last few years, and there could be significant benefits to upgrading to a smart alarm system that is customized for the needs of your business

Effective leadership communication is the cornerstone of any successful business or organization.

A leader's ability to convey their vision, build trust, and inspire others can determine the difference between an average outcome and an extraordinary one.

But to arrive at that point requires the ability to be a good listener.

“There’s a lot of people that listen but they don’t hear,” says career consultant and corporate soft skills trainer Murray Comber of Life Concepts. “You cannot be a good communicator unless you are a good listener. It’s all about understanding yourself and understanding others.”

Since 2001 he has trained more than 8,000 people, noting that many in the workplace don’t realize becoming a better communicator is a very learnable skill.

“It’s all about the pattern of human dynamics,” says Murray, adding that boards of education or even in families, do not teach people how they are hard wired. “I teach my clients that. I always say to them you need to know who you are, and you need to know who you are not.”

He says at least 71% of companies that fail do so because the leader didn’t understand who they were and who their employees were.

“Good communication is based on a relationship. You don’t communicate with people you don’t relate with,” says Murray, who regularly uses personality and temperament studies to determine a course of action for his clients. “Unless you know how to relate to a person, it’s going nowhere.”

He admits this type of soft skills training is often considered ‘fluff’ and is usually one of the first things cut from the budget or put on the backburner when economic times get tough.

“The truth is when things are going south, that’s when they should be put on the front-burner,” says Murray. “Training shouldn’t be seen as an expense but as an investment.”

In terms of advice for business leaders looking to take their first step at becoming better communicators, he says there must be a willingness to learn and connect with employees not just as a manager with subordinates. 

“What I’ve learned is that there is more emphasis put on product knowledge than there is people’s knowledge,” says Murray. “When you respond to what you’ve heard and have listened, you build trust with your employees and good communication is built on trust.”

To lead effectively, one must be a skilled communicator who can inspire, guide, and unite a team. A few things to consider:

• Active Listening: Leaders must pay close attention to what others are saying, not just with their ears, but also with their eyes and heart. By showing genuine interest and empathy, leaders can better understand their team's needs and concerns, creating a foundation of trust and respect.
• Clarity and Conciseness: Leaders must articulate their thoughts and ideas clearly and concisely. Avoiding jargon and complex language ensures that the message is easily understood by all team members. A clear message prevents confusion and promotes alignment with the leader's vision.
• Empathy: Leaders who demonstrate empathy can connect on a deeper level with their team members, making them feel valued and understood. This skill helps resolve conflicts, build trust, and foster a positive work environment.
• Adaptability: Effective leaders are versatile in their communication style. Whether it's a one-on-one conversation, a team meeting, or a public presentation, adaptability ensures that the message resonates with its intended audience.
• Body Language: Leaders should be aware of their own body language and the signals they convey. Maintaining open and approachable body language encourages a sense of comfort and trust within the team.
• Feedback and Constructive Criticism: Leaders need to provide feedback and constructive criticism in a manner that is supportive and motivating. Constructive feedback should focus on specific behaviors, offer solutions, and be delivered in a private and respectful setting.
• Conflict Resolution: Leaders must be skilled in addressing and resolving conflicts, promoting a healthy and productive work environment. Effective communication is essential in facilitating conversations that lead to resolution and growth.
• Storytelling: Leaders who can weave a narrative around their vision and goals are more likely to capture the hearts and minds of their team members. Storytelling is a powerful tool for making the message memorable and relatable.
• Consistency: Leaders must align their words with their actions and decisions. When team members can rely on a leader's consistency, they feel secure and are more likely to follow their guidance.
• Openness to Feedback: Leaders should be open to receiving feedback from their team members and actively seek it out. Constructive criticism can help leaders improve their communication and leadership skills.

By honing these skills, leaders can create a positive and productive work environment, foster strong relationships with their teams, and achieve success in their leadership roles.

The one constant thing business owners can count on is change, something the last three years have clearly shown.

But as business leaders continue to navigate in a changing economy shaped in the aftermath of the pandemic, many have not taken a moment to appreciate how resilient they’ve become.

“A lot of people haven’t been able to validate how many changes they’ve had to make doing business, and the transitioning and pivoting,” says Tracy Valko, award-winning mortgage broker and owner of Valko Financial Ltd. “They haven’t been able to look at their business, their goals and what they value in life and take the time to realize how resilient they’ve been.”

Tracy says in particularly, women business leaders are less likely to appreciate themselves and what’ve they been through and hopes to help rectify that by leading an informative and interactive workshop at our Women Leadership Collective Breakfast Series: Resilient Mindset later this month at Langdon Hall.

“I still see so many women spending time second guessing their skill sets,” she says, noting men seem to have more resiliency and forgiveness for themselves when it comes to pivoting in business. “Women spend more time judging themselves, thinking ‘maybe I shouldn’t speak up because someone’s going to say something’. I think in this world, especially now, women have to stand their ground and come together to support each other.”

At our Women Leadership Collective event Tracy will provide strategies for women to become more resilient by offering them a look inside what she refers to as her ‘resilient toolbox’ and share personal stories of what she has gone through creating a successful business over the course of the last 25 years. Besides being named one of Canada’s top individual brokers, she is also a published author and motivational speaker.

“I will provide a lot of different affirmations of ways to look at resiliency,” says Tracy, referring to her presentation. “A lot of people just don’t take the time to appreciate how far they’ve come and be able to pivot very quickly in an ever-changing world.”

Click here to learn more, or to register for our Women Leadership Collective Breakfast Series: Resilient Mindset which takes places Wednesday, Nov. 29 from 9-11 a.m. at Langdon Hall.

Tips about a resilient mindset

Embracing Change and Uncertainty

A resilient mindset begins with the willingness to embrace change and uncertainty. 

​Learning from Failure

Failure is a common part of life, and a resilient mindset allows us to see failure as a valuable teacher. 

​Cultivating a Positive Mindset

Resilient people focus on the positive aspects of a situation and avoid dwelling on the negative. 

​Building Strong Social Connections

Resilience is not a solitary endeavor. Building and maintaining strong social connections is a crucial aspect of a resilient mindset. 

​Setting Realistic Goals

While having big dreams is important, setting smaller, attainable milestones helps build confidence and motivation. 

​Practicing Self-Care

Resilient individuals recognize the importance of taking care of their physical and mental well-being. 

Adaptability

Those with resilience are not rigid in their thinking and are open to new ideas and solutions. They can adjust their plans as circumstances change and are willing to try different approaches to achieve their goals.

​Developing Problem-Solving Skills

Resilient individuals are excellent problem solvers. They break down complex issues into manageable steps and work through them systematically. 

​Seeking Support and Seeking Help -

Resilient individuals are not afraid to seek support and help when they need it. 

​Maintaining Perspective

In the face of adversity, resilient individuals remind themselves of the bigger picture. They recognize that the current challenge is just a chapter in their life's story and that it will pass, making way for new opportunities and growth.

The expression, ‘it’s lonely at the top’, may ring truer than ever these days as business leaders deal with a barrage of labour and financial issues which can not only affect their motivation but lead them to quickly becoming burned out.

In fact, Microsoft’s 2022 Work Trend Index - compiled via a global survey of workers across multiple industries and companies - indicated that 53% of manager reported feeling burned out at work.

This doesn’t come as a surprise to leadership coach and expert Julie Dupont, Principal Strategist and Owner of Cambridge-based Reimagine Leadership.

“We know there has been a bit of a mass exodus with boomers leaving (the workplace) and the onset of COVID, but still leaders have been expected to achieve the same results with even fewer resources,” she says, adding the ‘doomsday’ predictions of a potential recession have just exacerbated the situation. “It’s no wonder they are starting to feel burned out.”

Like employees, Julie says a lack of motivation in leaders often manifests itself in either performance or attitude when it comes to work.

“With managers you will see a loss of enthusiasm in the goals of the organization because a motivated manager sees the vision and buys into it and wants to be part of it and rallies the troops to make it happen,” she says. “But when you start getting to that point of burnout or loss of motivation, you start feeling some apathy towards the goals of the organization. You become so busy trying to figure out what you’re going to do for yourself that the goals of the organization take a backseat.”

As a result, Julie says employees’ performance and growth is easily impacted since they are no longer being challenged.

“They get used to this of life just doing the bare minimum and it spirals, so it’s about not having opportunities missed because your manager just doesn’t have the capacity to perform.”

However, Julie says there are many ways business leaders can ‘reignite’ their motivation beginning with having the self-awareness to know what their triggers are when it comes to work.

“You can then be in a place to start taking steps to manage yourself when you start noticing the apathy and anxiety,” she says, adding keeping a journal can help, even creating a ‘gratitude’ journal. “Some people may say it sounds hokey, but it works and brings to mind things that are good in your life so it’s not all doom and gloom.”

Also, the need for self-management is key says Julie.

“Moods are contagious and if you’re that leader walking around with a cloud over your head all the time that spreads and can be very unproductive,” she says. “When your people see that you don’t care, why should they?”

Julie says when leaders receive the skills they need to make choices and handle stress, that helps build resiliency and suggests using the services of a professional coach as another option, especially if they don’t have anyone either personally or professionally, they can confide.

“Managers don’t always they feel there is someone at work they can confide in. They may feel they’re at the top and have to do it alone,” she says, adding a coach can become a great ‘thinking partner’ for a business leader. “This is a person you can off load to who isn’t judging you and there’s no repercussions to sharing your experiences, and they have the added benefit of having strategies or ideas that can help you overcome those hurdles.”

10 tips to combat leadership burnout

• Know your early warning signs. Common burnout symptoms include poor sleep, loss of motivation, exhaustion, feeling every day at work is a bad day, increased irritability and engaging in escapist behaviours.
• Increase your self-efficacy. Seek out coaching and professional development experiences to identify mastery experiences.
• Empower your team and delegate more. Share your vision and purpose and reduce micro-managing.
• Become more deliberate with your time. Use your leisure time wisely and seek out positive social support and sources of relaxation and achievement outside of work.
• Take a break, 20 minutes a day. No texting, no internet, just you and an introspective practice (like mindfulness). Unplug out of work daily.
• Rewind, reflect, remember.  Take time to remember why you’re doing what you do. What is your purpose?
• Get the basics right.  Diet, sleep, and exercise.
• Honestly assess your situation and work toward solutions. Ask yourself the following questions: How am I travelling? Am I doing those things? Why am I doing what I am doing?
• Mentally remove yourself from the job. Step back and try to look at your job from an external objective point of view.
• Manage your energy not your time. Work out when you are most productive and do important tasks then.

Source: HumanPsychology 

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.