Blog

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Networking tips:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A few tips for managing disruption:

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Visit the Youth Creativity Fund to learn more.

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.”

The weather may be colder, but things are heating up fast when it comes to the winter tourism season in Waterloo Region.

In fact, tourism spending in Canada in general is expected to recover quicker than anticipated according to Destination Canada’s latest tourism outlook which is predicting a return to 2019 levels by 2024, up from 2025 as predicted last spring. As well, the report indicates Canada’s tourism sector could generate more than $142 billion by 2030 which represents a 35% growth over the next decade.

This doesn’t come as a surprise to Explore Waterloo Region CEO Michele Saran, noting that domestic travel has recovered much quicker than international visits.

“When you’re talking about Waterloo Region, keeping in mind we receive 96% of our visitations from the GTA, we expect to be fully recovered here to 2019 levels by 2023,” she says. “In fact, we’re almost there now.”

Michele credits this local rebound not only on a growing pent-up demand for travel opportunities following pandemic lockdowns and restrictions, but the fact the region has so much to offer.

“When you talk about the winter season, in Waterloo Region we always do quite well,” she says. “Interestingly, I’ve never seen a destination that doesn’t take a hit at this time of year except for us, and Christmas really seems to be our ‘thing’.”

Michele credits the numerous holiday festivals and activities for providing a major boost to our local tourism and hospitality sector, including Cambridge’s ‘Winterfest’ which offers numerous events and displays until the end of the month, Kitchener’s recent ‘Christkindl Market’ and KWFamous ‘Holiday Pop-Shoppe’, as well as Bingemans’ ‘Jingle Bell Rock’ and ‘Gift of Lights’ events.

“Everybody (tourism operators) seems very positive about this season,” she says. “And we’ve been doing our Road Trip campaign for the last few months on social media, and we’ve been talking about winter and amplifying all the fabulous things you can do within an easy drive of our target market.”

Besides Christmas activities, Michele says Waterloo Region is loaded with a variety of winter attractions such as Chicopee which should be welcoming skiers and tubers soon, as well Shades Mills Conservation Area in Cambridge for walking and cross-country skiing.

As well, Toyota Motor Manufacturing Canada has once again started its plant tours, which provide an inside look at its Cambridge facility via a motorized tram.

“Also, St. Jacobs and Elmira are always beautiful and magical places to visit in the winter,” she says, adding Explore Waterloo Region has been encouraging people to utilize the Ontario Staycation Tax Credit. 

The credit, which expires at the end of the month, allows Ontario residents to claim 20% of their eligible 2022 accommodation (cottage, hotel, or campground) expenses up to $1,000 as an individual or $2,000 if you spouse, common-law partner, or children, to get back up to $200 as an individual or $400 as a family.

“We’re actually lobbying as an industry to keep the tax credit in place for next year as well,” says Michele. “As you know, we were the first industry hit and the hardest hit and the last to recover, so we would love to keep this value added as part of our marketing arsenal.”

In terms of any potential threat from what has been dubbed as the ‘tripledemic’ (Flu, RSV and COVID-19), she remains optimistic that local tourism operators are prepared.

“I think everyone in the tourism industry is really good at listening to public health recommendations, and because our industry was the first hit, we’ve had to create all different types of scenarios about how to open safely and serve the public,” says Michele. “We’ve become really good at it and have a lot of practice.”

Visit Explore Waterloo Region to learn more.

A few things to check out:

• Cambridge Winterfest – runs until Dec. 31 and features light installations and a variety of events in all three downtown cores.
• Bingemans - Jingle Bell Rock, runs until Jan. 7 and outdoor light displays, surrounding a 40-foot dancing tree illumination. Gift of Lights runs until Dec. 31. Drive through holiday light display featuring over 300 animated and static light displays.
• KWFamous Holiday Pop-Shoppe - Until Dec. 30 featuring more than 80 local makers and creators taking part at shop located across from Kitchener City Hall.
• Jakobstettel – Celebrates 170 Years of St. Jacobs, featuring a series of events until Dec. 18.
• The City of Waterloo hosts  Winterloo on Jan 28, 2023
• Toyota Plant Tour – a 90-minute tour of Toyota Motor Manufacturing Canada’s Cambridge facility. Tours currently run Monday to Wednesday.
• Chicopee 

*  With files from the Toronto Star    

The City of Cambridge’s holiday season is packed with an array of unforgettable sights and lights thanks to Winterfest.

Previously known as ‘Christmas in Cambridge’, the festival – which runs until Dec. 31 - offers a wide range of activities and events to entice people to visit the downtown cores of Galt, Preston and Hespeler, providing a valuable opportunity to check out local businesses.

“The festival takes place in all three downtown cores which brings prosperity to all three,” says Leanne Bond, Recreation Co-ordinator, Special Events for the City of Cambridge.

She says many of businesses are extending their hours to ensure festivalgoers get the chance to check out what the downtown cores have to offer.

Cambridge Chamber of Commerce President & CEO Greg Durocher says the festival is a great opportunity for businesses to showcase themselves.

“More important than ever before because it’s so easy and convenient to online shop that we need to encourage people to remember they have small businesses in their communities that help build a strong economy locally and employ their friends and family,” he says. “It’s important to do what we can to support the small businesses in our community.”

Greg says support is especially needed since the holiday season is the most important time of the year for small businesses.

“Having an event like Winterfest gets people out and about, and maybe opens their eyes to opportunities where they can help a business and themselves by finding that special gift. It just makes good common sense,” he says.

The fun kicked off Friday night (Nov. 25) when hundreds of people took part in the annual Phil Kline’s Unsilent Night walking tour, which began with an official ‘countdown’ at City Hall followed by a leisurely stroll through Galt’s core to enjoy more than 30 light installations accompanied by the American composer’s music.

“We used to have it (Unsilent Night) on a Thursday night leading into our Cambridge Christmas Market, so it was two events in one,” says Leanne, noting Unsilent Night has grown exponentially so having it to kick off the month-long schedule of events made sense. Also, she says of the 37 cities hosting this event Cambridge was the only city in Canada selected.

“There’s some pretty good kudos with that,” says Leanne, noting the festival has been named for the past three years as one of the top 100 festivals by Festivals and Events Ontario. “We’ve really been adapting, pivoting and changing and making some big differences to the City of Cambridge and are really proud of that.”

Throughout the pandemic, the City of Cambridge turned to hybrid and outdoor pop-up holiday events, including the successful Winter Illumination display which saw a variety of light exhibits placed around the community, including a giant heart outside the Cambridge Chamber of Commerce office on Hespeler Road.

“We’re really proud of the fact we kept everything moving forward as best as we possibly could,” says Leanne, adding having an array of sponsors and community partners, including the Chamber, has been vital for the success of Winterfest. “We really couldn’t do this festival without them.”

Winterfest at a glance:

CP Holiday Train preshow (Wednesday, Nov. 30) – Starts at 3 p.m. at Malcolm Street Train Station. This event raises support for the Cambridge Food Bank.

Preston – Winter Ice and Lights features light displays all month in Central Park, plus a pop-up concert Thursday, Dec. 8 starting at 7 p.m.

Galt – Cambridge Christmas Market will feature the work of more than 60 local artisans and crafters, plus a range of live entertainment at City Hall Civic Square both days starting at noon. It takes place the weekend of Dec. 10-11 at the Cambridge Centre for the Arts and David Durward Centre.

Hespeler – Music and Lights in the Village takes place Friday, Dec. 2 at Town Hall, and the Idea Exchange starting at 7 p.m. and features a variety of holiday lights, tree lighting, musical entertainment, crafts, and food. (The event coincides with the village’s annual Santa Claus Parade on Saturday, Dec. 3 starting a noon.)

New Year’s Eve Party – Winterfest wraps up Dec. 31 by ringing in the New Year with a family skate at the Hespeler Arena from 4-8 p.m. The fun will include entertainment, games, an inflatable obstacle course and concession stand snacks.

Quiet quitting, thanks to viral posts on social media, has become a term very familiar in workplaces worldwide.

It describes the phenomenon of employees who no longer go above and beyond by doing only what is expected in effort to maintain jobs that may no longer interest or inspire them.

This disengagement from work has grown exponentially since the pandemic. In fact, the 2022 State of the Global Workplace report from Gallup shows only 21% of employees are engaged at work.

“We’ve come through such a crisis over the last couple of years. To some extent, I think we’re over it now, but it has forced people to make different decisions about work, especially if they were burnt out already,” says Frank Newman, CEO of Newman Human Resources Consulting, who will explore quiet quitting at a Cambridge Chamber of Commerce webinar Dec. 1 entitled Is Your Team Quietly Quitting?

He will not only touch on some of the top reasons why employees quietly quit as well as the warning signs but provide insight on how employers can alter their work environment so they can not only attract but, more importantly, retain employees.

“You want to make sure you create the best work environment as possible,” says Frank, acknowledging the existence of an “employees’ market” due to labour shortages.  “That really means taking a very critical look at your work environment. Do you know what people need? Is it benefits? Is it better management? This is the ideal time to do an employee survey or workplace assessment to provide you with some sort of tool you can use to get a fix in terms of what are you going to fix first.”

He says this process may not prove to be a comfortable experience for some workplaces, however, insists this information can go a long way in assisting an organization set benchmarks regarding branding, image or even compensation.

“There are so many changes happening right now and if you don’t understand where you’re going or where you’re at, it’s pretty hard to make any progress,” says Frank.

He also recommends employers conduct exit interviews, formally or informally, to get a sense of why an employee has decided to leave.

“Make sure you understand what people are feeling. Also, spend some time with your newest employees and ask them what attracted them to your organization.”

Frank says in the age of social media, it’s important to encourage people who leave to remain an ambassador for the organization adding that bad reviews tend to get more traction than good ones.

“Organizations need to think about that as they manage those who are quietly quitting and those who suddenly walk out the door,” he says. “I always encourage my clients to search various job boards to see what’s being said about them.”

Frank admits it’s a tough time to be a manager right now, noting that employees have become much more critical on how their companies are managed than they were in the past.

“People looking for work have so many options out there now, and if you’re a hiring manager, it’s putting more pressure on management to get work done with less resources,” he says, noting the difficulty this causes employees who are now required to pick up the slack due to staffing shortages.

However, Frank says he’s optimistic as the economy continues to readjust following the pandemic there will be less quiet quitting.

“As companies get smarter in managing their businesses and people, I think you’ll see less of that," he says.

Work Trends Facts:

• Burnout is a big risk in the workplace, especially amongst younger Gen Z professionals aged in their 20s, research shows. A survey of 30,000 workers by Microsoft showed 54% of Gen Z workers are considering quitting their job.
• In its 2021 Global Risks Report, the World Economic Forum ranks “youth disillusionment” as eighth of 10 immediate risks. Findings include deteriorating mental health since the start of the pandemic, leaving 80% of young people worldwide vulnerable to depression, anxiety, and disappointment.
• Workforce data from organizations including McKinsey & Company suggests 40% of the global workforce are looking to quit their jobs in the next three to six months.

Source: World Economic Forum website