Okanagan Business Examiner | Jan 2010

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BEING POWER SMART MAKES BUSINESS SENSE

Determined to improve their lighting, the Abbotsford Judo Club visited the BC Hydro Power Smart website for information. To their surprise, they ended up with more than just better lighting.

By replacing their old fluorescent lighting with energy-efficient fluorescents, the Club received a financial incentive through the Power Smart Product Incentive Program.

The new energy-efficient lighting has not only provided a revitalized environment to work and train, it is an upgrade that will pay off for years to come. The Club will be saving up to $600 a year in electricity costs.

When it comes to conserving energy, the Abbotsford Judo Club truly has it mastered.

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www.businessexaminer.caUnion of Unions

Two credit unions in B.C. have finished their mash up, becoming one under the First West banner. You won’t be seeing that name anytime soon though, because they are determined to keep their local identities. In the future First West intends to make history by becoming the first ever credit union in Canada to take mergers across a provincial boundary. 10

COVER STORY

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President Craig n. Brown Vice President noll C. DerriksanGrand Chief WFN, U.B.C.I.C.

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Advertising Sales Jack Kania | 250.212.0189 | [email protected] Executive Assistant Joanne Clarke | [email protected] Contributing Photographer Shawn Talbot | 1.888.317.1403 | [email protected] | www.shawntalbot.com Contributors Dominik Dlouhy | Shelley Gilmore | Bobbi Menard | Mischa Popoff | Women's Enterprise Centre Mailing Address P.O.Box 32034 rPO, 2151 Louie Dr. West Kelowna, B.C. V4T 3G2 | Fax 250.768.8241 Subscription Rates 12 issues annually | One year: $27.00 | 250.863.4636 Distribution The Okanagan Business Examiner is published monthly at Kelowna, BC by Prosper Media Group Inc. Copies are distributed to businesses from Osoyoos to Greater Vernon. The views expressed in the Okanagan Business Examiner are those of the respective contributors and not necessarily those of the publisher or staff. PuBLICaTIOnS MaIL aGrEEMEnT nO. 41835528 rETurn unDELIVEraBLE CanaDIan aDDrESSES TO: P.O. BOX 32034 rPO 2151 LOuIE Dr. WESTBanK, BC, CanaDa V4T 3G2

January 2010 Okanagan Business Examiner | 5

Business Examiner is NOW ONLINE!

Did you hear the one about the lawyer and…?

Results from our monthly survey on your experiences and what you think of legal services

and lawyers in general. Despite all the bad jokes out there, it’s better than you’d expect.

57

BEx 01/10

FOLLOW US ON

www.businessexaminer.ca

STARTING

YOUR BUSINESS

A Guide to Resources for BC Women

50

Kelowna’s third BIA

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downtown core. Now the

Pandosy Street area in the

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the same way. 56Starting Your Own Business

A guide to resources

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This Democracy It’s like shooting ducks in a barrel to target a politician these days, but Mischa Popoff says the latest attacks on Summerland Mayor Janice Perrino are a smear campaign with little

merit. 62

Calendar of Events

Chamber meetings,

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events, Women in Business,

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Show me the money

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for business start ups or

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in a review of what’s good

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BusinessExaminer

Editor’s Take 8

COVER - Union of Unions 10

Dominik Dlouhy 12

Show me the Money 14

What are you Worth? 16

WOMEN’S ENTERPRISE CENTRE INSERT 17

Movers & Shakers 50

Shelley Gilmore 53

Calendar of Events 54

South Pandosy BIA 56

Legal Services Survey 57

Hustream 59

Mischa Popoff 62

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SPECiAl ADvERtiSing FEAtuRETo thrive and not just survive is the goal for our local businesses in this economic climate, and through the collaboration and activities of three prominent local organizations we hope to help them achieve this. Each organization listed below has a common goal of supporting and promoting businesses in the area and each have different activities to support this:

The Okanagan Science & Technology Council (OSTEC) supports the science and technology business community by fostering an environment to support their initiatives, and does this through the following areas:

• Membership: OSTEC acts as a representative and advocate for the interests of the members

• Networking: providing a conduit in which science & technology businesses are brought together with industry, agencies and government

• Business Mentoring: a service for science & technology entrepreneurs looking to develop/adopt new technology

Check out OSTEC’s website for more information: www.ostec.ca

The Kelowna Chamber of Commerce is a leading business organization in British Columbia that strives to make Kelowna one of the best mid-sized cities in North America to live, work and play. As the largest Chamber in mainland British Columbia, the Kelowna Chamber focuses its activities in three key areas:

• Influence: our strong membership of more than 1400 businesses employing in excess of 25,000 employees act as a single powerful voice through the Chamber to promote local business interests.

• Connection: the Kelowna Chamber provides a cohesive business network for its members to expand their business contacts

• Value: the value-added benefits, programs, and services of the Kelowna Chamber are aimed at improving the bottom line of Chamber members

Check out Kelowna Chamber of Commerce website: www.kelownachamber.org

The Central Okanagan Economic Development Commission (COEDC) supports existing businesses and encourages new business investment in the Central Okanagan Region by focusing its activities in the following areas:

• Business Retention & Enhancement

• Investment Attraction

• Economic Development Facilitation

These services are provided to any business in the area through a variety of expert consultants, educational programs and valley wide initiatives. For more information on COEDC programs please visit: www.investkelowna.com

tHrIVE Not SurVIVE


SuStainable, effective penSionS are not that difficultby DEvon bRookS

Recently the Canadian Federation of Independent Business submitted a report to senior governments criticizing the growing gap between public pensions and those offered by private industry. The gist of their argument was that public pensions create much resentment because they are too rich and these pensions are paid for by the Canadian taxpayer. This was creating a “two-tier” pension system that Canada’s finance ministers must address.

The same week the Communications, Energy and Paperworkers Union (CEPU) of Canada backed a call by workers at failed Nortel calling for the government to backstop the pensions of those workers who lost everything when the company went bankrupt. Nortel is not alone as other companies have effectively dodged their pension plan responsibilities by bankruptcy in the recession.

Both of these calls boggle my brain.

Let’s look at the union’s idea first. Private companies offer pensions,

renege on the promises and the government should pick up the tab and look after the pensions?

If that is followed the incentive there for companies in trouble to forget their pension commitments would be huge.

The CFIB’s call for the government to rein in public pension plans seems equally bogus as I can’t figure out how making public pensioners poorer will benefit me or anyone else in private industry.

The CFIB claims if public pensions are cut the resulting savings could be passed on to private companies who would then use it to keep their pensions solvent.

It’s hard not to burst out laughing – first because when government saves money who really believes it will be passed on, especially in a time of burgeoning deficits? The second mind-stretching leap of logic is that these savings, even if passed on, will translate into better private pension plans.

Any company with extra savings has a nearly infinite range of possibilities for spending the money – more stock, renovations, training programs, innovation, equipment, productivity improvements and, not least, bonuses and gold-plated pensions for executives.

Many people claim that Canadians are overtaxed, but both senior governments have cut many taxes in the past decade. If the CFIB’s thinking holds true those companies should have solid secure pensions in place, yet the CFIB says 73% of Canada’s private company employees have no retirement plans through their employer. The Mercer company’s Pension Health Index shows Canada’s ratio of assets to liabilities has trended downward since late 2000, just as tax cuts started to show up.

Others argue that reducing taxes for individuals will provide us with the money to top up our own retirement packages. Unfortunately fully half of Canadians have no retirement plan at all beyond CPP.

Dealing with companies that don’t have any pension plans is more difficult, but for any company that does offer a retirement plan, the government should put in place an insurance scheme similar to the CDIC’s (Canadian Deposit Insurance Corporation) bank account protection. Any pension plan would automatically incur a 1% fee that goes into an insurance plan administered either privately or by the government. The money is inviolate and would be invested in secure funds so that any pension insolvency would be covered. Part of the organization’s mandate would be an overseer role to make sure that member groups pension plans are being administered in a sustainable fashion.

The fact is most Canadians won’t save for their retirement. Most companies won’t save for their employees either.

Devon Brooks is the managing editor of the Okanagan Business Examiner.

fromtheeditor

By special arrangement with our exclusive partner, Kelowna Signature Network Group, additional copies of the OBE will be distributed at the 2010 Olympic Winter Games, from February 12th to the 28th. This specialty package in the OBE

will be the ONLY distributed media vehicle in Whistler, profiling businesses from the Okanagan. This will allow your business to reach the thousands of provincial, national and international business people attending Olympic Events and visiting Whistler BC during the Games. Through the February issue, business readers will have the opportunity to learn

about what’s happening in BC’s Okanagan Business Sectors of:

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fromtheeditor


One day, a couple of years ago Gordon Huston and Harley Biddlecombe, CEOs of Envision Credit Union and Valley First respectively, were enjoying a vacation down in Palm Springs. Already friends the two got together for breakfast prior to a golf game and started talking about the future of credit unions in general and their own organizations.

It was the beginning of an idea about keeping their credit unions strong and relevant.

That discussion evolved to a proposal to create First West Credit Union, which officially came into being on January 1, 2010. Besides being the second largest credit union

merger in the province’s history this is a merger with a difference. You won’t be seeing any First West signs popping up any time soon as both Envision and Valley First are to retain their corporate identity.

Both men were very keen on keeping their regional focus and relationships with their customers. Huston says, “This model gives the advantage from size and allows us to keep our localness.”

Biddlecombe passed away last fall, leaving the process in mid-step. Paulette Rennie stepped in to take on Valley First’s CEO role until the merger was completed.

Rennie describes the merger as something that offers financial

benefits, but was not a matter of survival. She says, “We didn’t have a need for a merger.”

Instead she emphasizes that Valley First will continue, as before, in a close relationship with its Okanagan roots and customers. “In this model it allows us to continue to operate in our markets – the same brand, the same feel, the same people.”

She adds, “We’ve worked too hard to lose our relationships.”

The advantage of credit unions over their much larger financial cousins, the chartered banks is flexibility and a connection to community. This merger allows that, says Rennie.

One example is the new relationship they’ve struck up with UBCO. She

says, “Valley First has a partnership with the University. We put together some different packages for the kids. We’ve made it easier for them to bank.”

The decision to put a branch on campus is not about big profit. “The truth is that we want to invest in these kids. It’s not going to be our biggest profit branch.”

What it does is start up a financial discussion with those students that Rennie hopes will continue on after they leave the university. “That’s what it’s all about – building the future.”

The question has to be asked: if the university thing is indicative of all that Valley First has going for it, why

Valley First keeps name,

by DEvon bRookS | PhotoS by ShAwn tAlbot

but takES StEpS to EVENtual 3-Way mErgEr

vAllEy FiRSt CEo PAulEttE REnniE SAyS oF thE MERgER: “ouR RootS ARE hERE AnD wE wAnt to PRotECt thAt.”


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The answer is of course that one is no more or no less important than the other. Both are integral parts of your business’s overall communication strategy. They both connect your customers to you and you to your customers.

bother with the merger?

Looking back at the history of credit unions in B.C. the obvious answer is that it was inevitable. Richard Thomas is the Senior Vice-president of Government Relations and the Corporate Secretary for Central1 Credit Union, which is the association for credit unions in British Columbia and Ontario. Thomas recounts the last half century of credit unions in this province as one of consolidation and growth. In 1961 B.C. had 328 credit unions with 200,000 members. Today there are 46 credit unions representing 1.6 million people. Assets of $120 million in 1961 dollars mushroomed to $46 billion by 2009.

The future will hold to that pattern says Thomas. “I would suggest that it is likely to continue, but the absolute numbers [of mergers] have slowed down.”

The biggest assets credit unions have is responsiveness to local needs, and being fiscally

conservative, making them strong and safe in the eyes of borrowers and depositors.

The last credit union to fail was the Legion Credit Union in New Westminster in 1990. Thomas points out, “No member lost a penny in deposits in it and no one has lost a penny in any credit union since records have been kept starting in 1958.”

Both Valley First and Envision have weathered recent financial storms and have strong balance sheets. “We’ve gone through the worst 18 months in the finance industry and we’ve come out of it in good shape,” says Rennie.

In addition, according to her, “We have no duplication of markets.”

Or at least hardly any. About three years ago Envision set up an Okanagan beachhead in Westbank, but both CEOs say that in time the branch will take up new colours under the Valley First umbrella.

EConoMiES oF SCAlE

For Huston it is about the benefits of the economies of scale, which would seem to be counterintuitive if they intend to retain separate identities. There will be no cost saving on stationary, but both CEOs agree the merger will make a huge difference in other areas.

Huston explains, “The most compelling example is the cost of our technologies.”

He says, “The expected (annual) savings will be in the seven figures. The time span that will take is dependent on which platforms [are chosen]. It will probably take about three years.”

Rennie agrees, “We feel in business today there is a greater need for the latest technology, the innovative. This is a perfect opportunity for us to get economies of scale.” She explains, “We can eventually combine our [computer-based] banking platform and there’ll be tremendous savings there.”

A bigger company will present more benefits than just cost savings. As Rennie says, “We’ll have access to joint assets.”

That translates to bigger projects and bigger cash pools for projects. The single largest loan available to Valley First credit unions was capped at $10 million, but after the merger, Rennie says it will jump to $25 million. “We can lend to bigger companies than we could ever have done before.”

Customers will see another benefit, which is the seamless integration of services between the two brands under the First West umbrella. Clients from Valley First will be able to access their money and all other services in Envision branches and vice versa. The combined company will serve 167,000 members in 37 branches and 29 insurance offices from Tsawwassen to Kamloops. More than 1,200 employees will administer $5.6 billion in assets.

MErGEr COnTInuED On PaGE 52


The Great Recession is over. What’s next? On the Canadian side, many thanks are due to some competent financial management by past finance ministers and Bank of Canada heads. Thanks also to those currently holding the posts for not messing up the work of their predecessors. It turns out Canada has one of the best run financial systems in the world.

On the U.S. side, kudos go to those now fixing the mess mostly left by their predecessors.

Contrary to popular belief, the "Dirty Thirties" were mostly caused by governments’ reactions to the bursting of the credit and stock market bubbles in 1929, not the market crash. This time around the governments avoided repeating the mistakes of history.

They cut interest rates, kept the global financial system from collapsing and avoided starting a trade war (so far). Now they are free to make new mistakes of their own, in addition to dealing with the continued unwinding of the credit bubble.

What kind of problems can we look forward to in the New Year?

One problem will be the infrastructure stimulus package. The original intent was to boost the economy at a time when a decade long depression loomed. Of money “committed” so far most will be spent in 2010 to boost a growing economy. It risks inflation and higher budget deficits than necessary.

Once the economy is booming again, the federal government will have to raise taxes to start paying down the deficits. They will probably try to defer it to a future government, and risk making a mess of our national finances.

There will be tremendous pressure on governments to implement protectionist measures, like the “Buy America” policy attached to infrastructure spending. The real danger is that it can spread through retaliation and escalation and bring global trade to a halt and cause a global depression, just like it did in the 1930s. Barack Obama seems to have protectionist leanings, and he may find it within himself to make this fatal error.

Another problem will be the large number of residential and commercial properties with debt that matures and must be refinanced in 2010, especially in the U.S. Loans are hard enough to renew right now for credit worthy customers. Refinancing “no money down” mortgages will be difficult.

There are about seven million mortgages, good and bad, coming up for renewal in 2010. Money must also be found for large infrastructure loans like Dubai World's $6 billion, which went sour last November. Central banks normally focus on keeping inflation under control, and raise rates to keep the economy from expanding out of control. The threat of deflation from perhaps $1 trillion in mortgage defaults may provide leeway to keep rates lower longer than currently expected, perhaps into 2011.

Canada doesn’t have the same level of loan crises pending, so rates could rise sooner. But if we raise rates too soon, it may boost the Canadian dollar against the U.S., another blow against manufacturers and exporters.

Central banks around the world will be walking a tightrope, with severe

repercussions from raising rates too early and crunching the economy, and encouraging inflation by raising them too late.

This loan renewal problem has implications for investors in real estate. Many large projects will have to be sold at fire sale prices, with unsecured debt and equity written off like the 80,000 seat Pontiac Silverdome Stadium in Detroit. It was built in 1975 for $56 million, and bought (barring legal challenges) for $583,000 by a Toronto-based company last November.

Existing owners lost; those with cash available did well. The story will be repeated for other projects in 2010. Real estate investors should check their refinancing schedules for problems, and their ability to raise cash for bargains.

U.S. federal and state governments are doing what they can to avoid mortgage meltdowns, but some of their methods will only make the problem worse. For example, some courts are not allowing banks to foreclose on properties in default. It sounds nice, but if contracts become unenforceable banks will have every incentive to stop lending completely.

Regionalism could become a bigger problem in Canada than it already is. Natural resource driven Western provinces have weathered the downturn better than manufacturing driven Quebec and Ontario. The gap should widen as commodity prices rise in a growing economy to help the West, and the U.S. dollar slides over the long term to hurt manufacturers in the East.

The U.S.’ geography problem is reversed. California has made itself ungovernable with a host of

referendums that mandate higher spending, but bar tax increases to pay for it. They either revamp their political system or go broke. It will be painful either way. With an economy about the size of Canada’s, it will be a drag on growth in the rest of the U.S.

It also presents a problem for policymakers, as they try to manage interest rates and economic stimulus packages when different parts of the country have radically different needs.

It’s more fun to write about doom and gloom than the good news that is out there, but there are some real positives as well. Nearly all economic indicators are pointing to growth. Most firms have trimmed costs to the bone, which means a small improvement in sales could mean a big improvement in earnings and hiring. Stock markets are “fairly valued” at current levels and current earnings estimates, but 80% of earnings announcements are above expectations. They may be underpriced.

Our economy is certainly enjoying some sunnier skies, but there remain storm clouds on the horizon. Only time will tell if they majestically pass by at a distance, or if we are merely in the eye of a hurricane.

Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or [email protected]. Opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.

by DoMinik Dlouhy

“ThOSE WhO faIL TO LEarn frOM hISTOry, arE DOOMED TO rEPEaT IT.” - WInSTOn ChurChILL


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Lenders in the Okanagan are admitting to a cautious optimism for 2010. A solid business case coupled with an ability to carefully document and justify the plan are what lenders are looking for from borrowers in the upcoming year. Watchwords include ‘planning,’ ‘thoughtfulness,’ ‘commitment,’ and ‘viable.’

If 2009 was tougher than your business plan called for, one of the best places to leverage your existing relationship with your traditional lender is with a government or specialty lender who is looking to work with your business where it is right now. Below are three lenders searching out ‘doable’ deals with business owners.

CoMMunity FutuRES SElF-

EMPloyMEnt PRogRAM

In February of 2009 the Self-Employment Program changed from federal to provincial administration, with funding flowing from federal coffers. There are three separate and independent Community Futures boards in the north, central and south Okanagan, each with separate funding amounts and individual mandates to fulfill contracts within their service area.

In 2009 the Central Okanagan Community Futures signed 102 contracts for the self-employment program, 12 more than the 90 planned for that year.

“We are unsure of funding for 2010,” says Larry Widmer, general manager of Community Futures Central Okanagan. “There is a large amount of work being done by the province. There are lots of projects in B.C. and there is uncertainty of how it will all go forward. We will be doing business as usual going forward until we find out otherwise.”

Each Community Futures has a capital fund ($3.4 million in the Central Okanagan alone), lending approximately one-third of its capital each year. The good news is the organizations are always looking for the right deals. What has changed is the emphasis Community Futures places on partnering with other lending institutions. Once

known as a ‘lender of last resort’ Community Futures now looks to top up loans and form partnerships with other lenders to bring a deal to completion.

“We are typically the last lender to come in,” says Widmer.

PRoS

• Qualified EI recipients take a three day orientation to make certain the self-employment program is appropriate.

• For applicants who complete orientation and submit a viable concept that meets the program’s goals a four week training process begins. Training includes required extensive business planning.

• The program comes with 52 weeks of EI funding plus training to launch a new business.

ConS

• Typically, EI includes job loss, starting an independent business without salaried work or an income can be daunting.

• “It is a different lending market than a year ago,” says Widmer. “There are lots of challenges, lots of problems. The key is determining risk.”

• Be prepared for a longer process.

nEutRAl

• Typical rate is prime + 6%

• Standards are roughly the same as a traditional bank, and Community Futures will look for security of some sort.

• Look to explain known and potential risk in a clear and thoughtful manner.

woMEn’S EntERPRiSE CEntRE

The provincial headquarters for the Women’s Enterprise Centre (WEC) is located in Kelowna and more loans are made per capita in the Okanagan than in any other region in the province. Loan volume has picked up since September 2009 and there are multiple reasons to believe 2010 will be strong.

“It is really looking very optimistic out there,” says WEC CEO Laurel Douglas.

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Investors Group Financial Services Inc.Investors Group Financial Services Inc.

Investors Group Financial Services Inc.



(250) 762-3329 ext. 2611-877-541-2255



(250) 762-3329 ext. 261


Division Director

[email protected]

(250) 762-3329 ext. 261



250.762.3329 ext.2611.877.541.2255

The volume of inquiries from across the province has picked up, and a mentoring program is set to launch in the Central Okanagan. In a significant move the maximum loan amount has been raised from $100,000 to $150,000.

loAn ConDitionS

• Business ownership structure must be minimum 51% held by a woman

• Exemplary business plan required, so be prepared to go through extensive planning.

• Free access to extensive training programs in key business areas are available.

• Loan recipients have access to business advisors through length of the loan.

• Loans are available to every industry; however typically WEC loans track trends in women’s interests. More and more health related, professional services and science enterprise loans are being made.

• The training and stringent planning requirements create excellent

success rates. Typically only 35% of all businesses are still in operation at year five but WEC loan recipients boast a 75% survival rate.

• WEC works closely with other lenders including the Business Development Bank on a regular basis.

buSinESS DEvEloPMEnt

bAnk oF CAnADA

In a press statement, Carla Heim, Senior Manager of Business Development at BDC’s Kelowna branch, notes they don’t have a cookie-cutter approach. “We like to look at each one individually. And shareholder commitment is key.”

In the Okanagan, BDC has focused over the last year on finance and consulting needs created by the tough economic times.

CAnADiAn wEStERn bAnk –

kElownA inDuStRiAl CEntRE

Canadian Western Bank saw slowdowns in forestry and construction in 2009. The equipment finance and leasing centre is looking for good deals, says Area VP and

branch manager Jim Kruiper. “If it is a good deal we will finance it if it makes sense. Locally we are still trying to help our customer grow.”

In the past year Kruiper has seen larger companies hold over on their equipment, waiting for a pickup in business, while smaller companies do their best to hold tight. “Slowly they are going to use up equipment, but we are optimistic. We see industry slowly coming back.”

loAn ConDitionS

• CWB will look at almost any revenue producing equipment.

• Typical loan size is between $100,000 and a half million.

• Will lease used equipment for a maximum three year term.

• Cash flow modifications for seasonal businesses.

• No agriculture or restaurant funding.

AltERnAtivE RESouRCES

Provincial listing of lending sources can be found at www.smallbusinessbc.ca. In 2007 the

provincial government published a listing of directed loan programs for business owners in a range of industries and from a variety of backgrounds.

vEntuRE CAPitAl

www.equitycapital.gov.bc The B.C. Renaissance Capital Fund Ltd. is a Crown corporation. The Renaissance Fund invests in venture capital partnerships managed by experienced investment professionals. It focuses on four key technology sectors: information technology, digital media, clean technology and life sciences.

MEEt An AngEl

www.angelforum.org The B.C.-based organization creating match ups between businesses and investors. It’s a dynamic, preparation intense forum by invitation only. Needing capital, but not sure about the angel investor process, the site offers a valuable ‘Investor Readiness Test’ to help the business owner determine if an angel relationship is the right path to take.

Alternative Lending 2010


For women business owners, the question of self-worth has a habit of working its way into business, thereby affecting pricing, profitability and sometimes even growth decisions. In addition, women are often intimidated by numbers and money and are put off by having to negotiate and put a value on their services.

Numerous studies and statistics suggest that women-owned enterprises tend to be concentrated at the marginal end of the business sales and profitability scale. One explanation is that women’s definitions of success are complex and financial gain is not always a priority. On the other hand, is there any reason why women can’t have it all: the work/life balance, the creativity, the great relationships, and the strong financial performance?

When Dawn Woodward opened the spa, Sole to Soul, in Kimberley, she did it to make a living at something that she loved. “I make sure I get to know each and every person who walks through the door. I believe it’s the small town feel of my business that makes people come back,” says Woodward.

Women often get into business because they’re good at something. The business may have started out as a hobby, but then became an opportunity to generate income. Moving from a sideline to a business may have been planned, or it may have ‘just happened’.

Commitment is the first step in moving your business forward. This requires acknowledging to yourself and others that you are in business to achieve certain goals, which should include meeting sales, profit, market share and customer satisfaction targets.

When Zu Peters moved to Canada from Singapore she rediscovered her love of all things food. Her first step was launching Zu’s Kitchen, providing her own exotic spices and sauces to local restaurants. Then in 2004 she decided it was time to take the step she had always planned for and open Spoonstruck Café in Kelowna.

Zu has reached every goal she has set for herself and is still planning for the future: “I have a dream to take this business and franchise and license it so there can be more neighborhood cafes like this one.” And that dream is about to come true as Zu has almost completed her franchising and licensing plan.

It is amazing how many businesses operate day-to-day without a plan. Take pricing, for example. Pricing decisions have far-reaching implications. Not just for profitability, but for sales volumes and consequently, workload.

Selling your product or service with a considerable

What are You Worth?

WOrTh COnTInuED On PaGE 49

FREE Mentoring Program for Women Entrepreneurs

Financial support provided by:

Funding provided through the Canada-British Columbia Labour Market Agreement

Betty-Ann Thomson - B.A. Thomson Consulting

Terri Knox Service Enhanced Training

Encouragement, Support, Innovative Ideas, Motivation,

Connections, Resources, Inspiration, New Business Skills

Limited space, apply today!

Are you in the first three years of business? Join a Peer Mentoring Group in Kelowna

www.womensenterprise.ca/mentor1.800.643.7014


markup means you end up with a profit. The old adage: buy low, sell high applies. Why, then, do so many women undervalue their product or service and then try to make up for it by running themselves ragged?

The answer to this is complex, but here are several possible scenarios:

1. SEConD-PlACE SynDRoME

Your business started out as a hobby or special interest. As it’s grown, you’ve continued to focus on the household and other responsibilities. Nobody really takes what you’re doing seriously. Your business always seems to come in second in the priority list, so it doesn’t get enough care and attention to thrive.

2. whAt iF thEy Don’t likE ME?

Fear of rejection can greatly influence your business, as it is said to drive much of human behaviour. That fear can be particularly salient if your product or service is a reflection of your creativity, talent or taste. You set your prices based on your desire to sell and not the cost of doing business or what the market can bear.

3. i CAn’t Do thAt

Women don’t always feel comfortable in a rough-and-tumble competitive model of business. They tend to take a more cooperative approach. Nothing wrong with that. Where you get into trouble is in: a) undervaluing your own needs, or; b) overvaluing the wants and needs of potential customers, especially if they aren’t really in your target market anyway. The ideal situation for a business is when you offer what you do best and that is exactly what a well-defined customer group wants. That way, you can confidently ask for a price which not only covers your costs, but reflects your value. In order to get to that ideal situation, women often have to overcome the tendency to be overly modest, and stop playing the tapes about not blowing their own horn.

4. thERE’S A lot MoRE thAn A SAlE

RiDing on thiS

Sometimes businesses are started out of necessity. Problems arise when financial demands on the business are unrealistic and out of sync with progression. This can happen when a company is put together on a shoestring budget and there is no allowance for unexpected growth expenses.

5. StARting FRoM SCRAtCh

Traditionally, women go into business with less business background and connections than their male counterparts. As a result, they often have to negotiate in newly formed relationships. An established customer is the best customer, it can

be hard to create new relationships when your competitor is undercutting and, often, undermining your credibility.

6. whAt iF i'M in ovER My hEAD?

If you research your market, determine your costs, price right and set a strategy for the future, odds are your business will succeed. The question is: can you handle it? For some women, the idea of becoming the CEO of an enterprise that started in their kitchen is outside their comfort zone.

There are many complicated reasons for undervaluing a product or service. As the summer

approaches, take a look at your business and think about the scenarios above. Know that many, many women business owners deal with these scenarios. Perhaps you’ll feel more comfortable facing them, knowing you’re not alone.

Women’s Enterprise Centre is the go-to place for B.C. women business owners for business loans, skills training, business advisory services, resources, publications and referrals. Call us at 1.800.643.7014 or e-mail inquiry@ womensenterprise.ca.

Financial support provided by:

Funding provided through the Canada-British Columbia Labour Market Agreement

Sheri Raynard The Gardening GalSalmon Arm

Patricia Currie Northern Lights Coaching ServicesSouth Okanagan

FREE Mentoring Program for Women Entrepreneurs

Encouragement, Support, Innovative Ideas, Motivation,

Connections, Resources, Inspiration, New Business Skills

Limited space, apply today!

Are you in the first three years of business? Join a Peer Mentoring Group in North or South Okanagan

www.womensenterprise.ca/mentor1.800.643.7014

WOrTh COnTInuED frOM PaGE 16


Movers&Shakers

Visit our website@ www.okanaganstaffing.comPhone: 250.717.0506 Fax: 250.862.5181

Your Temporary and Permanent Recruitment Specialists

Okanagan Staffing Services Inc.

Matching the Right Employee to the Right Employer - Hiring Made Easy! The Okanagan has been going to work with us since 1995

T 250.300.7551 | F 250.491.0266 | E [email protected]

Okanagan Biztex Inc. is a fresh new alternativeto providing your Information Technology requirements & to relieve you of the stresses of managing the problems associated with computers.

Let us manage the problems and frustrations of IT, leaving you to manage what you do best, YOUR business.

We are a small company today serving small to medium size businesses, ranging from two users to a collocated network of 70+ users.

We have set the standards of our technicians very high; to give you the support that you demand to keep your business running to the standards you expect.

PRovinCE PRAiSES

PEtERS bRoS.

ConStRuCtion

B.C.’s Ministry of Transportation and Infrastructure has given the Contractor of the Year award to Peter Bros. Construction of Penticton. The award was given for work performed on a portion of Highway 24, which runs east-west between highways 5 and 97, about 100 km north of Kamloops. Peters Bros. specializes in highway construction projects and works all over the province. When delivering the award Penticton MLA Bill Barisoff said, “Throughout this project, the great attitude and quality approach to their

work was an example to all in the industry. I commend Peter Bros. and staff for delivering good value to the taxpayer.”

hERE CoMES thE Sun

As we move through the darkest days of winter St. Hubertus & Oak Bay Estate Winery decided to celebrate the power of the sun with the installation of six solar panels to supplement the winery’s hot water systems. Says co-owner Andy Gebert, “We are growing and making wine as a sustainable farming operation, however we still need a lot of energy to run the systems we use, especially hot water.” The

winery had an open house in December to show visitors how the new system works.

bEllStAR APPointS

nEw AREA MAnAgER

Todd Mallen is the new Area General Manager for Bellstar’s resorts in the central Okanagan. Currently Mallen is in Canmore, Alberta, temporarily looking after five resorts in that area while the regular manager is on maternity leave, but he will be coming back to the Okanagan in the spring. At that time he will take over management of Bellstar’s new Copper Sky Resort in West Kelowna. Before joining Bellstar Mallen had

been with Lake Okanagan Resort.

Putting thEiR MovE

whERE thEiR Mouth iS

Urban Systems is a consulting engineering and design firm that assists governments, various organizations and private companies to realize plans. Based out of Kamloops the company has offices in several cities in Alberta and B.C. including Kelowna. The Kelowna branch is moving its office, determined to be part of the city’s downtown renaissance. Ken Gauthier, a managing partner at Urban Systems, says, “We’re thrilled to be a part of the vibrant, downtown core and to move into a space that reflects our innovative business model.”

toDD MAllEn

Movers&ShakerstouRiSM kElownA’S

nEw boARD

Over 60 people attended the Tourism Kelowna AGM to announce the new board members. Roger Sellick is Chairman, Brad Sieben is Vice Chair, Stan Martindale is Treasurer and Steve Stinson is Secretary. Other board members represent different sectors of tourism. For accommodation sitting members include Rosemary Paterson who is President of the Kelowna Hotel Motel Association, Brad Sieben, Stan Martindale, Gail James, Kelly Watt, Mike Greenhalgh, Daniel Bibby and Bill Eager. Wine is represented by Blair Baldwin, golf by Roger Sellick, skiing by Michael Ballingall, restaurants by Steve Stinson, transportation by Sam Samaddar, agri-tourism by Alan Gatzke, arts & culture by Tracie Ward, the City of Kelowna by André Blanleil, and Markus Schrott is an appointee from BDO Dunwoody.

ChEF oF thE yEAR

Geoffrey Couper, an instructor in the Okanagan College Culinary Arts program, was given the nod for Chef of the Year by the Okanagan Chefs Association.

A RoAD wEll-

tRAvEllED

A year ago, coming off the recession of late 2008, real estate experts predicted an average downturn of 3% in the housing market across the country. In that average the numbers varied between a projected 6% increase in Regina followed by 4% in Winnipeg, 1% in Halifax

and a slump in Vancouver of 9%. After Vancouver Toronto would fare second worst with a 4% decrease and a tie for a 1% fall in Montreal and Calgary. Here’s what really happened, at least until the end of November, according to the Canadian Real Estate Association. Halifax experienced a 0.03% increase. Winnipeg shot up by 10.9% and Regina’s numbers went up by 10.6%. Among the projected losers Montreal numbers went up by 7.6%, Calgary had a 4.4% increase, Toronto defied all expectations with a 13.5% jump and Vancouver beat the odds as well with a 22.0% jolt. The culprit or saviour, depending on your point of view, is the continuing low rate of borrowing. In the central Okanagan the average house price dropped from $460,993 in November 2008 to $451,312 –a 2.1% decline.

oSoyooS REStRiCtS

RoADSiDE SignS

Fed up with the proliferation of road side signs within the town, Osoyoos town council has passed a by-law requiring that all signs must be approved by either the town council, or if alongside a highway, the Ministry of Transportation and Infrastructure. The restrictions also apply to sandwich boards and parked vehicles. The by-law came into effect last month and the town has sent out notices telling owners of six signs and three unlicensed vehicles to remove them. If they aren’t voluntarily removed the town will do it, and then charge for the service.

thE CASE FoR

A nEw look

Vernon’s Case Furniture Gallery opened its doors last month. It is owned by Dennis and Marion Case, Jody and Brad Swartz, who took over the Sandy Furniture site and refinished the 96-year-old building. The Case’ already own two Ashley Furniture stores, one in Kelowna and the second in Enderby. Jody Swartz is Dennis and Marion’s daughter. The new retail outlet covers 18,000 sq. ft. over two floors.

CAnADA’S bESt

winERy FoR 2009

The International Wine & Spirit Competition in London, England named Summerhill in Kelowna as the Canadian Winery of the Year for 2009. Stephen Cipes, Summerhill’s owner was unable to attend in person, but says the win reflects well on the entire Okanagan industry, his wine maker Eric von Krosigk and is a credit to the production of organic wines. Thirteen countries were given trophies for being the best wine producer in their country and McGuigan Wines of Argentina was given an overall award as the Winemaker of the Year.

- with notes from Capital News, Kelowna

olivER nEw winDy

City in okAnAgAn?

Windstream Energy has started work on five meteorological towers to test the wind patterns in Oliver for a potential wind farm. Five towers will be constructed over the winter. According to a story in

the Oliver Chronicle, Hally Hofmeyr, a consultant working for the Ontario-based company, wind turbines have undergone considerable technological improvements in the past few years. Turbines no longer require guide wires that used to kill many birds and they are much quieter than earlier versions.

SEnkulMEn

oFFiCiAlly lAunChED

The much-anticipated, green business park under development by the Osoyoos Indian Band Development Company has been launched. The park’s opening was slowed by the recession, partly because it’s green

focus will incur extra costs. The Osoyoos Band has insisted through the project development phase that the park has to be as green as possible. In December the commitment was made with the unveiling of the park’s new sign.

oSoyooS inDiAn bAnD

ChiEF ClAREnCE louiE

AnD thE hon. StoCkwEll

DAy, MP okAnAgAn-

CoquihAllA AnD MiniStER

oF intERnAtionAl

tRADE, At thE lAunCh

oF thE bAnD'S nEwESt

DEvEloPMEnt – thE

EnviRonMEntAlly

SuStAinAblE SEnkulMEn

EntERPRiSE PARk SlAtED

to oPEn in thE SuMMER

oF 2010.


I N T E G R I T Y I S T H E

S T R E N G T H

O F O U R M E M B E R S H I P

For further information,

please contact:

[email protected] or

or visit our website

at www.signaturenetwork.ca

KELOWNA

BUSINESS NETWORK

Labour Relations, Employment and Human Rights Law

Providing strategic legal representation to unionized and non-unionized employers

throughout the Thompson Okanagan

Vernon, BC Telephone: 250.558.3393

www.ulclaw.ca

Veronica M. Ukrainetz

TD Canada Trust Small Business Advisor

TD Canada Trust can help.

Ken LehmanCommercial Account Manager

Vernon(250) 550-1250, ext.230

[email protected]

It’s our business to understand and help build your business.

Call us today for an appointment and find outhow we can help your business succeed.

Deb StoddardSmall Business Specialist

Vernon(250) 260-5725, ext. 256

[email protected]

Small Business Banking

Canada Trust

We’d like to introduce Debra Lehune as your Small Business Advisor.

With over 25 years of business banking experience, Debra understands the pressures of owning and operating a

business and is committed to helping you by:

Drop by the branch and talk to your Small Business Advisor and discover how we can make your business banking easier. We look forward to seeing you soon.

390 Main St. Penticton250.770.2300 ext. [email protected]

Monday to Wednesday 8 am – 6 pmThursday & Friday 8 am – 8 pm

Saturday 8 am – 4 pm

thE FutuRE

Huston says a larger company with branches spread out over a bigger area also helps to diversify the company’s risk because up- or downturns in the economy in one community can be offset by prospects in another.

That advantage gets larger if, for example, a credit union were to have a foot in more than one province. Until now, that has been impossible. Credit unions are created and regulated provincially, but in light of the TILMA (Trade, Investment and Labour Mobility Agreement) proposal between B.C. and Alberta new possibilities are opening up.

Nothing’s definite yet, but the two partners were in discussion two years ago with First Calgary credit union to see if they could make history by merging across the provincial line.

Huston feels sure it will go ahead. Sometime. "We are confident that it will happen, but we aren’t confident about the timing.”

Under the TILMA agreement financial service companies will have access between the two provinces, which requires a number of legislative changes at the provincial level. For credit unions and other financial services, the B.C. legislature has already made those changes, but Alberta isn’t there yet.

Huston says it makes sense for First Calgary to join. “A lot of Calgary customers do a lot of business in the Okanagan.”

When, if Huston is correct about the extended merger with First Calgary, the idea is to carry it forward much the same way that the current merger has gone with local identities and jobs left intact. As Rennie points out, “No staff person will lose their position.”

First West’s corporate head office will be in Surrey.

Asked how future decisions will be made if they impact both (or all three) credit unions, or if there are conflicts Huston answers, “Prioritization of one region will be decided by members’ needs in the region. When in doubt lean toward the members’ needs and defer to the regional president.”

On future expansion, Rennie says, “The immediate vision is if there is an opportunity to expand the decision will be made as to who the opportunity fits.”

It all sounds like a match made in heaven. It is certain that operational and administrative realities are going to pose hard problems, but both credit unions agree that the future is bigger and, they believe, much brighter together than apart.

MErGEr COnTInuED frOM PaGE 11


In the world of business there are more than enough gurus who will tell you everything from soup to nuts about your business, but have you read or heard anything lately telling you that style matters? It’s not what you think. In this case style isn’t whether your shoes or tie go with your outfit or if you are pulling that all together.

We’re talking about style as it pertains to your style with your people. Many reports and research studies prove beyond a reasonable doubt that good employees stay, in part, because their manager has style.

In my world recently I have come across some examples of how not to manage and thought these worthy of sharing. Lacking style can get you into more trouble than you imagine. Here are four of those types:

1. thE “ovER thE ShoulDER”

MAnAgER – while it may seem

like good technique to always know what your staff is up to, constantly watching over their shoulder tells them you don’t trust them to do their jobs well – consider offering some 1:1 training if you feel they need to brush up a bit and then let them fly.

2. thE “olD yEllER” MAnAgER

– just like our mothers always told us, there is an inside voice and an outside voice. You know the one at the football field or hockey rink – as a manager you must above all maintain your cool even if those around you are losing theirs. Lose your temper and your cool once and you can spend a lifetime shaking that monkey off. Consider a little bit of “self talk” as you enter the touchy situation; tell yourself to keep cool and you’ll be amazed at how quickly you can diffuse the situation when you have not added to the escalation

3. thE “FRiEnDly giAnt”

MAnAgER – getting in and joking with your staff is certainly something

that is favoured. Being one of the guys and gain their trust, but watch where the line is – venturing into crude or sexist jokes or comments will land you in a tub of hot water that you will have trouble escaping from. Know the boundaries and make sure everyone else knows them too.

4. thE “MAStER MAniPulAtoR”

manager – achieving a level where staff are doing what YOU want them to is fantastic, but do they know why they are doing it? Have you engaged them into this state of productivity or have you manipulated them for your own purposes? Consider openly communicating with them the why’s, the where we’re goings, etc. They are smarter than you think and will figure out they’ve been manipulated and it will come back to haunt you in the end. The short-term gain is not worth the long term pain.

Managing with style is something that will make you and your team stand out in this competitive market

– both for the consumer dollar, but also for the all important “star employees”. Show them your style is one they can work under, work with, and aspire to take on. In the end, style does matter.

A style that is engaging, communicative, inclusive – and if you happen to have fashion sense – means you are golden. Having a style that people can emulate creates a well defined team, a strong and productive group of people all moving in the same direction. Be a mentor within your organization by showing you understand that ‘style does matter’.

Shelley Gilmore is a Kelowna-based business consultant. Gilmore HR works with businesses to link the people side of business and the people strategy to the business plan. She can be contacted at (250) 864-1153 or view her services online at www.gilmorehr.com.

The style of respectby ShEllEy gilMoRE


C a l e n d a rkElownA ChAMbER lunChEon

- JAn. 13 - MAntEo RESoRt,

kElownA

Guest speaker Assistant Commissioner Bud Mercer, who is the Chief Operating Officer of the Vancouver 2010 Integrated Security Unit, will discuss security planning for the 2010 Olympic games. Runs from 11:45 am to 1:30 pm. $35 for members, $45 for non-members. Call 250-469-7350 for tickets by Jan. 11.

buSinESS AFtER houRS - JAn.

14 - FlAMAn FitnESS, wESt

kElownA

The Westbank Chamber of Commerce’ monthly networking event from 5:30 to 7 pm. Free for members, $5 for non-members, but non-members need to RSVP at 250-768-3378.

intERnEt buSinESS

StRAtEgiES, PARt 2 - JAn.

14 - CoMMunity FutuRES,

PEntiCton

A three hour session beginning at 6 pm covering six basic topics: ‘8 Viral Marketing Techniques’, ‘Directory Submission Pointers’, ‘Driving Traffic to your Website with Signature Files & Autoresponders’, ‘E-mail Marketing Tips’, ‘Affiliate Programs’, and ‘Online Advertising’. Part 1 of this course runs one week earlier on Jan. 7. Run by Charleen Edis from Edis Computers. To register call 250-493-2566.

PuRSuit oF ExCEllEnCE -

JAn. 15-17 - PREStigE inn,

kElownA

One of the longest running and most successful development courses to improve a person’s communication, conflict resolution and awareness of their own style when dealing with problems and day-to-day issues. Offered by C3 Training the Pursuit of Excellence runs all three days from 8 am to 8 pm. $595 for the first person, $195 for the second. Go to www.c3training.com or call 1-800-630-5575 for more information.

buSinESS AFtER 5 - JAn. 19 -

wESbilD CEntRE, vERnon

The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for non-members. For information e-mail the Chamber at [email protected] or call 250-545-0771.

vwib EvEning nEtwoRking

MEEt - JAn. 20 - bESt

wEStERn vERnon loDgE

The dinner meeting of Vernon Women in Business runs from 5 to 6:30 pm pm. $14 for members, $16 for non-members. More information by e-mail from [email protected] or go online to http://vwib.com.

buSinESS AFtER houRS - JAn.

21 - quAil’S gAtE winERy,

wESt kElownA

The Kelowna Chamber of Commerce’ monthly networking event from 5 to 7 pm. $7 for members, $12 for non-members.

oRgAnizE youR tEChnology

- JAn. 21 - CoMMunity

FutuRES, PEntiCton

Professional organizer Linda Andersson will help you figure out how “to work with, rather than against your natural tendencies to prioritize, simplify and create an organized day. Organize Your Technology helps you process electronic information and use technology more effectively, while eliminating computer clutter.” From 6 to 9 pm. To register call 250-493-2566.

bREAkFASt with thE

MAyoR - JAn. 22 - MAgnuM’S

REStAuRAnt, PEntiCton

The Penticton & Wine Country Chamber of Commerce has arranged this breakfast meeting with Mayor Dan Ashton, which begins at 7

am. No tickets are available at the door and must be pre-paid. $15 for Chamber members; $20 for everyone else. For more information go to www.penticton.org or call 250-492-4103.

PEntiCton buSinESS

ExCEllEnCE AwARDS - JAn. 30

- PEntiCton lAkESiDE RESoRt

The annual Penticton & Wine Country Chamber of Commerce Business Excellence Awards is themed around the upcoming Winter Olympic games. Doors open at 5:30 pm. Tickets are $60 each or $440 for a table of eight. For more information go to www.penticton.org or call 250-492-4103.

vwib buSinESS lunChEon

- FEb. 3 - SChubERt CEntRE,

vERnon

The monthly daytime meeting of Vernon Women in Business runs from 11:30 am to 1 pm. $14 for members, $16 for non-members. More information by e-mail from [email protected] or go online to http://vwib.com.


C a l e n d a r how to MARkEt youRSElF -

FEb. 10 - CoASt CAPRi hotEl,

kElownA

A ‘Grow Your Business’ seminar put on by Kelowna Women in Business. Entrepreneur and owner of Insperion Marketing, Cindy Shaw will give information to business owners on how to market themselves. Tickets are not available at the door, and must be ordered by Feb. 5. $25 for members; $35 for non-members. Register online at kwib.org.

buSinESS AFtER 5 - FEb. 16 -

okAnAgAn CollEgE, vERnon

CAMPuS

The Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for members, $15 for non-members. For information e-mail the Chamber at [email protected] or call 250-545-0771.

builDing youR bRAnD - FEb.

18 - CoMMunity FutuRES,

PEntiCton

An interactive workshop led by Kim Lawton of DogLeg Marketing to help define your customers and maximize the effect of your advertising dollar. From 6 to 9 pm. To register call 250-493-2566.

buSinESS 2 ConSuMER

ExPo tRADE Show - APR.

4-5 - PEAChlAnD RECREAtion

CEntRE

This is the Peachland Chamber’s second annual trade show of this nature with both indoor and outdoor venues. There will be 10 workshops of product demos to reach buyers. For more information contact Scott Wilshaw at 250-767-2455 or [email protected].

buSinESS AFtER houRS - APR.

8 - ACCEnt hoMES At SiERRA,

wESt kElownA

The Westbank Chamber of Commerce’ monthly networking event from 5:30 to 7 pm. Free for members, $5 for non-members, but non-members need to RSVP at 250-768-3378.

woRkPlACE tRAining FoR

innovAtion - until JAn. 2011

- All loCAtionS

B.C.’s Ministry of Advanced Education and Labour Market Development has created the new Workplace Training for Innovation Program. Eligible employers can apply for funding to improve productivity, introduce new technology or equipment, improve international competitiveness or bring in new strategies to increases company productivity or competitiveness. Employers must

have fewer than 50 employes, have been in business for at least one year and be in good standing with the BC Corporate Registry. More information and applications are available online at www.aved.gov.bc.ca/workplace_training_program/welcome.htm.

lAbouR MARkEt MEntoRShiP

PRogRAM - ongoing - South

okAnAgAn

This program is offered by South Okanagan Immigrant & Community Services. It matches professional mentors with clients who need a guide in the Canadian job market. Mentors can play a variety of key roles in an immigrant’s life. They can help newcomers to chart a career path, or give a newcomer an opportunity to volunteer within the mentor's business. Contact Endrené Shepherd at 250-492-6299.

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Sabrina SutherlandDilworth Shopping Centre2339 Hwy. 97 N., Unit 700

Kelowna(250) 712-3350, ext. 256

[email protected]

Robert O. LevinTrade-Marks

Patents

Trade Secrets& Technology Transfer

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PHONE: (250) 418-3250FAX: (250) 418-3251TOLL FREE: 1-877-943-9990E-MAIL: [email protected]


107 - 3640 Gosset Road, Westbank, BC 250.707.1153 www.discoverycomputers.com

A s k t h e P r o f e s s i o n a l sMichael Dias Owner

As we don’t know what wonders will happen next year I will reflect back on the top ten things that shaped the tech world in 2009.

10. OPENCL and Direct Compute promise to take GPU computing mainstream. 9. There is an app for that. Hottest platform was neither the PC nor Mac.

It was the cell phone. And it’s not slowing down. 8. Steve Ballmer stewards Microsoft into a new era.

And within a year he has changed Microsoft from laughing stock with Vista to NEW AND IMPROVED Windows 7.

7. The cloud looms large. Cloud computing is starting and it will be very big before we know it. Windows 7 is already implementing it.

6. Iphone sets the Bar for Smart-Phone Excellence. Everyone wants it everyone tries to be it.

5. DRM is Dead (at least for Music). RIAA backs off on embedding copy protection on all songs.

4. Best Mid Priced CPU Intel Core i7-860 3. Best Video Card Radeon HD 5870. First Direct X 11 Card in the market. 2. Twitter Hits BIG. Everyone is Tweeting, have you? www.twitter.com

1. Windows 7 Launches – Everyone Cheers. Faster than Vista more secure than XP. Best of both Operating systems in one.

Sandler Training utilizes continual reinforcement through

ongoing training and individual coaching sessions not only to

help you learn but also to ensure your success. With over 200

training centers worldwide to provide support, you won’t fail...

because we won’t let you.

Sandler TrainingSM utilizes continual reinforcement through ongoing training and individual coaching sessions not only to help you learn but also to ensure your success. With over 200 training centers worldwide to provide support, you won’t fail…because we won’t let you.

S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training are service marks of Sandler Systems, Inc. © 2008 Sandler Systems, Inc. All rights reserved.

Would you rather make excuses or

sales?John Glennon

109B- 3677 Highway 97 NorthKelowna, BC, V1X 5C3

P: 250-765-2047 / F: 866-314-3410www.glennon.sandler.com




sales?John Glennon






sales?John Glennon



John Glennon109B-3677 Highway 97 North

Kelowna, BC V1X 5C3P: 250-765-2047 F: 866-314-3410

www.glennon.sandler.com



sales?John Glennon



The quest to form the South Pandosy Business Improvement Area in Kelowna is now going strong. A website (southpandosy.com) is up and running, a survey is being collected to hear from businesses in the area and there has already been an open house.

The boundaries would be Wardlaw Avenue to the North, Richter Street to the East, the corner of Lakeshore and Richter to the South and Abbott Street to the West.

According to Stacey Fenwick, who is the marketing director for the SOPA housing development in the area, the day after the first e-mail was sent out to local businesses she received 10 replies: eight for the proposal, one against and one uncertain.

At the December 10 open house 50 people attended. Fenwick admits, “The meeting was a little bit hijacked by parking issues.”

That comes from a decision last year to use one of the area’s parking lots for a social housing complex, which led, eventually to a lawsuit against the City. That has now been dropped while a more congenial approach to dialogue is underway.

Still, Fenwick says for the most part, people were

really excited by the prospect at the open house.

The website states the BIA would:

• Be a vehicle for developing a vision for the area and expressing its identity;

• Create a strong identity that attracts new customers to the area via unique, collaborative marketing;

• Be a vehicle to apply for grants and funding, and;

• Provide liaison to City Hall to address area concerns

Funding the BIA will require a tax of $1/$1,000 in assessed value. The website estimates the cost for a building worth $890,000 to be approximately $75 per month. If it goes ahead the fees would provide an annual budget of $124,000.

The aim is to have the BIA in place in 2010. City council will deliberate the issue at the January 25 meeting.

Fenwick says, “The City is for this, but they want to make sure we’ve done our homework.” She says, “I’d like to see 80% approval because a BIA won’t work unless we have a buy in.”

buSINESS oWNErS

puSH For SoutH

paNDoSy bIa

by DEvon bRookS


The quest to form the South Pandosy Business Improvement Area in Kelowna is now going strong. A website (southpandosy.com) is up and running, a survey is being collected to hear from businesses in the area and there has already been an open house.

The boundaries would be Wardlaw Avenue to the North, Richter Street to the East, the corner of Lakeshore and Richter to the South and Abbott Street to the West.

According to Stacey Fenwick, who is the marketing director for the SOPA housing development in the area, the day after the first e-mail was sent out to local businesses she received 10 replies: eight for the proposal, one against and one uncertain.

At the December 10 open house 50 people attended. Fenwick admits, “The meeting was a little bit hijacked by parking issues.”

That comes from a decision last year to use one of the area’s parking lots for a social housing complex, which led, eventually to a lawsuit against the City. That has now been dropped while a more congenial approach to dialogue is underway.

Still, Fenwick says for the most part, people were

really excited by the prospect at the open house.

The website states the BIA would:

• Be a vehicle for developing a vision for the area and expressing its identity;

• Create a strong identity that attracts new customers to the area via unique, collaborative marketing;

• Be a vehicle to apply for grants and funding, and;

• Provide liaison to City Hall to address area concerns

Funding the BIA will require a tax of $1/$1,000 in assessed value. The website estimates the cost for a building worth $890,000 to be approximately $75 per month. If it goes ahead the fees would provide an annual budget of $124,000.

The aim is to have the BIA in place in 2010. City council will deliberate the issue at the January 25 meeting.

Fenwick says, “The City is for this, but they want to make sure we’ve done our homework.” She says, “I’d like to see 80% approval because a BIA won’t work unless we have a buy in.”

1. Do you primarily interact with lawyers to help smooth and protect your business plans or more often when something has gone wrong?

Smooth and protect 33.33%

Gone wrong 21.21%

About equal 22.73%

I don't use lawyers 22.73%

2. What are the areas you most use lawyers for in your business:

Business operations 26.98%

Business set up 19.05%

Trademark issues 6.35%

Human Resource issues 4.76%

Business negotiations 4.76%

Litigation (defending or pursuing lawsuits) 20.63%

Other 17.46%

3. How much money do you typically spend on legal issues in a year?

$1,000 or less 47.54%

$1,001 to $5,000 27.87%

$5,001 to $10,000 8.20%

$10,001 to $50,000 9.84%

$50,000 or more 6.56%

4. In this last year when compared to the year before have your legal bills:

Gone up (but I'm using legal services much more) 14.29%

Gone up (rates have gone up) 1.59%

Stayed the same 50.79%

Gone down (but I'm using legal services much less) 30.16%

Gone down (rates have declined) 3.17%

5. Do you feel you are getting good value for your money from your legal representatives?

Yes 67.74%

No 12.90%

Not sure 19.35%

6. Did you shop around before retaining your current legal representative?

Yes 17.74%

I went with a recommendation from someone I knew 45.16%

A little bit 11.29%

No 25.81%

7. Did you know what to look for in a legal representative?

Yes 66.13%

Not really 24.19%

No idea 9.68%

8. Is society in general much more likely to sue than 10 years ago?

Yes 55.56%

No 17.46%

Not sure 26.98%

9. Do you have faith in our legal system?

No, I don’t go near it with a ten foot pole unless I have no choice 7.81%

No, it is slanted heavily in favour of big companies and big government with lots of money 12.50%

No, the whole system is now concerned with the letter of the law, not its intent 20.31%

Yes, on average, the system works reasonably well 42.19%

Yes, it is fair, most of the

time, in most cases 7.81%

Yes, it could hardly be any better 0.00%

I really have no idea 9.38%

10. What area of law in Canada or B.C., pertaining to business, is most in need of overhaul and why?

• SPEED of resolution. I have a simple foreclosure now in year three of proceedings. Its simple - owner did not pay, we have mortgage. We foreclose. Why three years later is the mess still costing us money and time (all to legal fees)? Owner left the country two years ago (fled) and STILL the issue is unresolved (clearly they have no interest in the case or the property anymore).

• Tax. It's slanted in CRA’s favour and makes it hard to fight them without exhausting resources.

• Taxation and/or aboriginal rights and title issues.

Too many projects are shelved due to First Nation concerns.

• DUI's. Lengthier penalties may make people think twice before getting behind the wheel after having a few drinks.

• Lol. Serious?

• Patent - Price of patent does not include the team of lawyers to enforce it no matter how blatant the infringement might be.

• Municipal law. The local government act provides far too much individual protection for persons working within municipalities, which is leading to reckless and sometimes illegal actions and bylaws when a municipality is dealing with individuals or corporations.

• Provincial government needs to limit the power that local municipalities have to discriminate when assessing property taxes. We find that cities are starting to factor 'revenue potential' into their tax calculations. This allows them to charge up to four times more to one business sector compared to another, even if land is zoned exactly the same. This is discrimination and is not right!

• Property Transfer Tax.

• Employment law and business protection.

• Personal rights and the ability to defend property and individual interests vs. large concerns – private and government.

• Young Offenders Act.

SurVEy rESultSlaw

66 respondents$1,000 or less

$50,000 or more

$10,001 to $50,000

$5,001 to $10,000

$1,001 to $5,000

How much money do you typically spend on legal issues in a year?

28 %

10 %

8 %

7 %

48 %

$1,000 or less

$50,000 or more

$10,001 to $50,000

$5,001 to $10,000

$1,001 to $5,000

How much money do you typically spend on legal issues in a year?

28 %

10 %

8 %

7 %

48 %

Yes

Not sure

No

Do you feel you are getting good value for your money from your legal representative?

68 %

13 %

19 %

No, I don’t go near it with a ten foot pole unless I have no choice

Yes, it is fair, most of the time, in most cases

I really have no idea

Yes, it could hardly be better (0.0 %)

Yes, on average the system works reasonably well

No, the whole system is now concerned with the letter of the law, not its intent

No, it is slanted heavily in favour of big companies and big government with lots of money

Do you have faith in our legal system?

8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

$1,000 or less

$1,001 to $5,000

$5,001 to $10,000

$10,001 to $50,000

$50,000 or more

Yes

No

Not sure

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

No, I don’t go near it with a ten foot pole unless I have no choiceNo, it is slanted heavily in favour of big companies and big government with lots of moneyNo, the whole system is now concerned with the letter of the law, not its intent Yes, on average, the system works reasonably wellYes, it is fair, most of the time, in most cases Yes, it could hardly be any better I really have no idea

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

Yes

Not sure

No


68 %

13 %

19 %









8 %8 %

9 %

13 %

20 %

42 %

SurVEy COnTInuED On PaGE 58


• Slanted labour laws are too much for the worker, and not fair to the employer.

• Everything, lawyers and crown and judges all work together. There is no fair representation for clients that they can afford!! The system is also discriminating against aboriginals. You definitely need to have money to get anywhere or go anywhere in the so called Justice System!!

• Media, broadcasting and copyright.

• Family law.

• The judicial system has accommodated the litigious system which is popular in the U.S. and coupled it with English Common Law. Lawyers have created

an environment of 'fear of litigation', which is supported by the number of spurious suits which should never have gone before the courts. Very few people are accountable for their own actions any more.

• Many contracts state that in event of a dispute a mediator will be used. In most cases disputes go straight to a lawyer. I feel that lawyers should respect the contract and at least allow for a mediator to be used.

• Criminal prosecution- need more severe punishment for repeat offenders and violent crime offenders. Need a transition lifestyle for young offenders- especially drugs/

homeless so they can turn their life around and not be a continual burden to society. Work-fare gives them a sense of worth. Drug dealers/ violent gang members should have all of their assets seized and have to live at a work farm. Rapists should be neutered and rehabilitated with other rapists on a secluded island. Beyond a doubt convicted murders- especially serial /multiple killers should be euthanized. Why keep them alive draining societies resources?

• BC Liberals must stop cutting legal aid.

• The cost of access lawyers is prohibitive to the vast majority of Canadians.

If you would like to be included in future surveys conducted monthly by the Business Examiner please send your e-mail address to: [email protected] and indicate in the body of the text that you want your name added to the survey list.

SurVEy COnTInuED frOM PaGE 57

Evolu

tion

• Slanted labour laws are too much for the worker, and not fair to the employer.

• Everything, lawyers and crown and judges all work together. There is no fair representation for clients that they can afford!! The system is also discriminating against aboriginals. You definitely need to have money to get anywhere or go anywhere in the so called Justice System!!

• Media, broadcasting and copyright.

• Family law.

• The judicial system has accommodated the litigious system which is popular in the U.S. and coupled it with English Common Law. Lawyers have created

an environment of 'fear of litigation', which is supported by the number of spurious suits which should never have gone before the courts. Very few people are accountable for their own actions any more.

• Many contracts state that in event of a dispute a mediator will be used. In most cases disputes go straight to a lawyer. I feel that lawyers should respect the contract and at least allow for a mediator to be used.

• Criminal prosecution- need more severe punishment for repeat offenders and violent crime offenders. Need a transition lifestyle for young offenders- especially drugs/

homeless so they can turn their life around and not be a continual burden to society. Work-fare gives them a sense of worth. Drug dealers/ violent gang members should have all of their assets seized and have to live at a work farm. Rapists should be neutered and rehabilitated with other rapists on a secluded island. Beyond a doubt convicted murders- especially serial /multiple killers should be euthanized. Why keep them alive draining societies resources?

• BC Liberals must stop cutting legal aid.

• The cost of access lawyers is prohibitive to the vast majority of Canadians.

Evolu

tion

by DEvon bRookS

thESE two ShotS oF PEtER

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For centuries the only method to convey information that wasn’t spoken was the written word, which in the past few centuries has been dominated by books, newspapers and magazines.

In the 1990s the Internet was able to combine printed information with enormous choice, or interactivity, almost instantaneously.

The birth of the Internet required a retreat from the audio and video formats of radio and TV to the written word because of technological limitations. Today, anyone who spends time online knows graphic images and video are on the ascendant.

Peter Matejcek is the president, and Peter Callaghan is the CEO, of Hustream, a Kelowna-based company that believes it has what it takes to lead the way into the next evolution of the Internet, which will be interactive video. Matejcek says, “It has to be high end. It has to be engaging.”

Hustream is the vehicle, they say, to do that.

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The company creates videos allowing viewers to interactively walk through a website. On screen a viewer meets a host, who poses questions to the viewer allowing them to navigate quickly through a website using video rather than written text.

Says Matejcek, who spent years teaching people how to use computers, “I started to see patterns of how they would learn. People would learn from facial expressions and body language, but everybody was trying to teach with text.”

The concept may sound simple, but putting it together into a workable, efficient framework has taken technological advances only recently available, advances both in the computers people own and connections fast enough to download enough information to make the presentation viable.

A typical presentation isn’t one video shot; it is dozens and dozens, all fitted together like a jigsaw so that a viewer can seamlessly,

easily work their way through a website to the information they want.

Hustream’s first big customer was Okanagan College. A visit to the front page of Okanagan College’s website is dominated by the Hustream aboriginal tour, titled ‘OC: The Possibilities – An Interactive Aboriginal Student Recruitment Resource’ (www.okanagan.bc.ca/site15.aspx).

At each stage, the student host poses viewers with the most sought after questions, which the viewer can click on. The next screen poses more choices based on each preceding question. The answers come in audio and video formats.

Initially, says Matejcek, “When we first did the Okanagan College we thought we had too much, but the kids went through everything. [The College] came back and said they

wanted more.”

Callaghan explains why. “The playful,

gaming side of human nature

gets people to try the

different buttons.

Some of it is suspicious too – if I push other buttons will I get the same message?” (They don’t.)

Matejcek is wildly enthusiastic about the service’s potential, because of inherent limitations in text. He gives another example where Hustream has great advantages. “We think this has a great value for First Nations people doing a video covering their ancestry without the language or literacy barriers.”

Hustream, which is a startup with eight employees, is not yet profitable. It is funded in large part by the National Research Council of Canada who, says Matejcek, “Totally gets it. They have been great in helping us connect in the U.S.”

Callaghan has worked with other start ups; although never one this small, but he has unbounded aspirations for the company. “We’re there, we’ve got a market. We want to be the number one provider of one-to-one video tools in the world.”

Matejcek describes Callaghan as having solid business sense that grounds the company. “Pete [C] is the pragmatist and helps us put a structure on it.”

That doesn’t diminish Callaghan’s own palpable enthusiasm. “We’re way ahead in our thinking of where the market will be.”

He believes one of the major revenue streams will be in helping companies generate sales leads. “We have every evidence that we have top companies willing to invest top dollars.”

He relates a discussion with a company getting 30,000 leads a month from their web services. Too much of a good thing, is the same as having nothing. The company principal told him that there were so many leads that led nowhere that the sales people disregard them.

Callaghan says, “Companies trying to generate leads with video say the video isn’t effective.”

He believes differently. “With well designed questions people can go through much farther and give much

more information.”

That is significant, he says. “Sales leads can be pre-qualified to get people because they really want the information. The quality of the leads from a one-to-one video is going to be much higher.”

If you’re skeptical about that claim, because many websites already solicit information from viewers to improve their prospect as leads, Hustream’s multiple video shots are linked, in the background to a database. The path users cheerfully pick in these sessions answer many questions that people won’t take the time to answer directly.

Callaghan points out, “Instead of a message for the masses it’s a user-controlled conversation. This keeps the user engaged much longer. Questions will have scores to get people of higher value to the sales staff.”

For that reason, Hustream is already getting a lot of attention. According to Callaghan, “We keep having conversations with companies who want to lock us up.”

The pair are only beginning to tap into the full potential of the video/digital interface. One of their newer clients, whose material is not yet complete, sent up their host to have the interactive segments filmed at Hustream’s green screen studio in Kelowna.

The filming may have been done indoors in the Okanagan, but the onscreen work shows the host overlooking a magnificent ocean view with crashing waves and blowing sea winds.

Matejcek says they are building other basics into the design concept – one being that these presentations work best if they are done, not by paid actors reciting lines in a commercial, but by real people who either produce the service (i.e. employees) or use it (i.e. customers). “The U-tube generation sees right through the corporate B.S.”

More than that, says the irrepressible Matejcek in one of his thiS SCREEn CAPtuRE FRoM An okAnAgAn CollEgE SEgMEnt ShowS whAt A

viEwER iS PRESEntED with AFtER liStEning to A ShoRt viDEo.

EVOLuTIOn COnTInuED frOM PaGE 59


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own full motion video presentations, “You’ve got to make it fun, and exciting, and enjoyable.”

If Matejcek comes across as unbridled optimism, it belies the depth of his knowledge on how to carry the message effectively. The Hustream model is closely based on the experience of commercial TV. Says Matejcek, “We ask the clients to give the message in 30 seconds.”

He adds, “For every second of an online presentation you lose 1% of your audience.”

The answer: “One of my personal beliefs is that you have to keep it simple. You can build nice, simple, clean products that don’t require 50 programmers.”

Ultimately, Matejcek feels Hustream is going to work because it isn’t offering a competing product or service that will take away from other video production companies. Instead, Hustream is a tool. “We’re

not positioning ourselves to compete with people, but to help them. I see us as [employing] at least a 100 people at some point with thousands of partners.”

Yes, that includes the home user. Callaghan says, “You’ll be able to do this at home in a year. It’ll be packaged and licensed for different users.”

What that means, predicts Callaghan, is, “We’ll be profitable by the end of next year [2010].”

PEtER MAtEJCEk SAyS viDEo, whiCh

inCoRPoRAtES boDy lAnguAgE, iS

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ExPERiEnCE with thEiR CuStoMERS.


Even shoddy journalists don’t dare make up news in the age of the Internet. Instead, they resort to omission and distortion. A case in point is a succession of stories published in The Penticton Herald (one ran in The Vancouver Sun) that attack Janice Perrino, the mayor of Summerland.

The breaking “news” concerns third-party advertising by businessman Mark Ziebarth in support of local, business-minded candidates. The only part of the story that even comes close to resembling news is the fact that Ziebarth did not put his name on his ad, a decision which was legal, ethical and commonplace.

The first distortion by Herald editor James Miller is the implication that Ziebarth cares only for his own bottom line and therefore must have had a direct “interest” in who would sit on Summerland Council. An editor who assumes businessmen only care about profit fails to appreciate that a community prospers when its businesses prosper, and vice versa. Perhaps Miller is not aware of what keeps his newspaper afloat.

This brings us to Miller’s omission. Whatever his degree of business acumen, he either failed to check with his own advertising department or he glossed over the fact that they sold Ziebarth his ad, which ran the day before the election. Ziebarth also ran ads in Summerland’s weekly, but it was the ad in Miller’s own newspaper that appears to have struck Miller as some sort of

effrontery to democracy.

The second distortion is Miller’s front-page quote of a political science professor from Simon Fraser University whom he heard saying on the CBC that “by not publicly disassociating themselves from the anonymous ads, council members had placed themselves in a position of conflict.” What this tenured academic from a left-wing university means to say is that he wishes this was the case. It most certainly, and thankfully, is not!

When a political candidate runs an ad she must indicate the ad is endorsed by her campaign; she must also declare the cost of the ad as a campaign expense. Everything else falls under the rubric of free speech. I’m allowed to wear a T-shirt the day before an election that supports my favourite candidate and Ziebarth can take out an ad, anonymously if he wants. You’d think the editor of a newspaper might know this. Perhaps the owners of The Herald should consult with a lawyer who does.

Judging by the tenor of Miller’s continuing coverage, and by an interview he gave on CBC’s As It Happens, he disagrees. So… why did he run Ziebarth’s ad in the

first place? The Herald accepted Ziebarth’s money, approved his ad for editorial and legal content, and then ran it, and only a whole year later, while Perrino was at home recovering from major surgery, did Miller decide it was all wrong. Where was his indignity before the election?

Gordon Campbell wants to restrict free speech before elections. Bill 42 was vigorously opposed by many newspapers across the province (even the Globe and Mail), along with The BC Civil Liberties Association and The Trial Lawyers

Association of BC. According to its website, The Herald ran a single story seeming to join this principled opposition, but only after portions of the bill were struck down in court.

And what did Perrino do back in 2008 when she saw the ad endorsing her campaign? In the interests of

full disclosure she immediately contacted The Herald to find out who placed it so she could declare it as part of her campaign even though she neither requested nor endorsed the ad. And what did The Herald do? It refused to tell her.

There will now be an expensive inquiry into all of this. But it should not be politicians and businessmen on trial. It should be a local editor who turns out to be the source and subject of the yarn he’s been spinning for more than a month. And people wonder why some newspapers are in trouble.

Mischa Popoff is a freelance political writer with a bachelor’s degree in history.

WatcH For back-SplattEr WHEN tarrINg HoNESt polItIcIaNS

by MiSChA PoPoFF

January 2010 Okanagan Business Examiner | 63 w w w . b e n s o n s a l l o u m w a t t s . c o m

BENSON SALLOUM WATTSBENSON SALLOUM WATTS

200-1455 Ellis Street Kelowna, BC V1Y 2A3 Ph: 250.861.5678 Fax: 250.861.5642

270 Highway 33 West Kelowna, BC V1X 1X7 Ph: 250.491.0206 Fax: 250.491.0266

Estates Square - 102A 1979 Old Okanagan Hwy. Westbank, BC V4T 3A4 Ph: 250.769.4949 Fax: 250.769.7070

Real Estate Law | Business Law | Wil ls & Estates | Personal Injury Law | Abor ig inal Law | General Li t igat ion

L L P

L A W Y E R S

E X P E R I E N C E I S T H E D I F F E R E N C E

Meet our new legal team in West Kelowna. They are here to assist you with all of your legal needs.

Real Estate Law | Business Law | Li t igat ion | Injury Law | Abor ig inal Law


Call Ed Lugossy Licenced Commercial Real Estate Agent 250.870.2801

NC Derriksan & Son Enterpriseswww.ncderriksanandsonenterprises.com

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Documents

Okanagan Business Examiner | Jan 2010