June 2010 Okanagan Business Examiner by NICHE MEDIA

JUNE 2010

INSIDE:

Hi-Techâ&#x20AC;&#x2122;s Wild, Wild West The Networking Fraud Naughty & Nice National Debts

Ryan Donn

In the Age of Downloads

OKANAGAN

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COVER

Musical journey

Publisher Craig Brown publisher@businessexaminer.ca

Ryan Donn started his career in music 10 years ago, just as the industry convulsed in the throws of the digital revolution. Listen to Donn as he relates his journey in the middle of the storm. Page 6

Managing Editor Devon Brooks editor@businessexaminer.ca ADVERTISING SALES Sales Representative Murray Hicks murrayh@prospermediagroup.ca Design / Production Corrina Deters production@prospermediagroup.ca

inside

The Empty Business Card - 11 Why handing out business cards and networking is like talking to a mirror. No one’s listening.

Technology’s Wild, Wild West - 12 PC Magazine’s senior columnist Tim Bajarin says the onslaught of the digital age is only half way there.

The ex-VANOC worker - 14 Former VANOC employees coming out of B.C.’s biggest party are a different breed

The Crisis of Greece - 29 Global crisis or holiday option - what Greece’s problems mean to us

4 Okanagan Business Examiner / June 2010

Executive Assistant Joanne Clarke jclarke@prospermediagroup.ca Contributing Photographer Shawn Talbot 1.888.317.1403 shawn@shawntalbot.com www.shawntalbot.com Subscription Rates 12 issues annually | One year: $27.00 778-755-5727 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: 105-1979 OLD OKANAGAN HIGHWAY, WESTBANK, BC, CANADA V4T 3A4 Follow us on

President Craig N. Brown Vice President C. Derriksan FOLLOW Noll US ON Grand Chief WFN, U.B.C.I.C.

101-1979 Old Okanagan Highway, Westbank, BC V4T 3A4 T: 778.755.5727 F: 778.755.5728

Cover Story - 6 The desk of derriksan - 8 the new copyright act - 10 fred sarkari - 11 technology’s wild, wild west - 12 Oliver - 15

LORRAINE MCGRATH If leaders want to lead

okanagan falls - 17

they need to get in touch

Lorraine mcgrath - 20

with reality. If that’s too

national Aboriginal business conference - 21 Movers & Shakers - 23 the fuel survey - 24

vague and ‘new age’ for you read some hard core practical advice on what makes leadership work in this month’s column by one of the

shifting directions - 26

area’s most accomplished

shawnee love - 28

business people. www.

Dominik Dlouhy - 29

mcgrathexec.ca

mischa popoff - 30

ontributor

inside

SHAWNEE LOVE

Fred Sarkari

I founded Love HR to

Remember the last time

help businesses meet

you received a business

their goals through their

card, or gave one out at

people and we specialize

a networking event. Did

in change management.

it mean anything or was

I have been described

it done on autopilot?

as “turning HR on its

Fred Sarkari wants you to

head,” and although I

think about it. He works

didn’t write this column

with entrepreneurs to be

upside down, my position

more effective in their

is controversial: hire

professional and personal

ex-VANOCers for their

life. He has worked

passion and values, but

with startups to some

only if you can give them

of the world’s largest

the time and attention

organizations. Fred is

they need. To read more

also a best selling author.

practical HR, visit www.

www.fredsarkari.com /

lovehr.ca, or you can

250-575-0333

phone at 250.801.1341 or email at info@lovehr.ca.

Dominik Dlouhy

Bobbi-Sue Menard

Cautions investors to

Talks with Tony Edwards

put the Greek crisis

to decipher what the

in perspective and

federal government’s

remember that tough

latest attempt to update

economic times offer

our Copyright Act means.

good holiday potential.

Winners, losers and the big grey area of uncertainty will keep this issue percolating a while yet.

Mischa Popoff

wonders where the

boundaries are between common sense, satire,

stifling correctness and

the limits of speaking the truth.

Okanagan Business Examiner / June 2010 5

Ryan Donn’s musical business journey through a digital transformation A decade ago a young 22-year-old named Ryan Donn decided to turn his musical talents into a career. It took him three years from when he started until he put out his first CD and started to look at the numbers. At that moment a musical business was born; although he didn’t think of it that way then. “I mean, CDs cost. Between ten and thirty-thousand is the average spent by an independent artist.”

Artists start out with the desire for people to hear their music, and most won’t be working in the field after 10 years because they, like many entrepreneurs, believe a good quality product will sell itself. He counsels patience and perseverance. “Most of them stop because they try to make money from music too soon.” Donn’s description of himself: “I am an independent artist with

some commercial success, is what I would say.” As a type of musician, Donn hesitates a second, “Acoustic folk pop. It’s taken me years to come up with those three words. Years.” For those that want to make a living in music, “You think about every possible way [of making the music] all the time. It never stops.” He says the reality these days is he is 95% about business. A successful musician is the one who can get people to pay attention. “As a musician I have to make it easy for people to find my music, the way I wanted them to find it.” There is a delicate tipping point between hearing music and being interested enough to pay for it, whether live or recorded. It is the transition between a listener and a fan and musicians need fans. “A fan,” Donn explains, “is somebody who is going to tell other people about your music.” Today Donn’s business plan has matured beyond relying on CD sales. The best money is in live performances, but instead of trying to bring fans to him he goes where lots of people who can be converted into fans, already are. Musicians that play in a coffee shop, he points out, will be lucky to have an audience of 20, most of whom are buried in a conversation. Instead he thought about places where there are large crowds of music-enthused people waiting to listen and designed a program for school-aged kids. Donn brings a multimedia show with a tailored message called ‘How do you follow a dream?’ “I’ve created a children’s show and seriously, it’s been one of the most fulfilling surprise bonuses of anything I’ve done.” Audiences are typically 500 willing students and 30 teachers. The teachers alone are more numerous than what he could hope for in a coffee shop.

So far, his new business model is paying off. “It will be my main income by 2011. I can almost guarantee you.”

Long Live the Cassette Of course, it’s not just Donn whose business has matured. The entire music industry has transformed dramatically. “Ten years ago when I started I still looked at having a CD and a cassette,” says Donn. “That’s so archaic.” The cassette reached archaic status quickly. Only invented in 1958, 2.4 million players were sold in a single year by 1968 alone. By 1999 8% of all music sold was on a cassette. The Recording Industry Association of America (RIAA) reported that the value of all cassette sales in the United States in 2008 amounted to $900,000. In 2009 that fell to zero as manufacturers gave up on the cassette. The question now isn’t whether, but when CDs will follow suit. CD sales dropped 20.5% (by number shipped, 21.9% by value) from 2008 to 2009. Rather than a replacement medium, Donn believes all recording media might follow the cassette to extinction. Total revenues flowing into the industry for music purchases dropped from $38.6 billion in 1999 to $27.5 billion in 2008. Statistics Canada reports operating revenue for the music industry (so more than just sales of musical recordings) fell from $674 million in 2007 to $619 million in 2008. There is a future though. Donn suggests: “Spotify and Pandora are the two things that I think the music industry is going to.” He adds, “Ownership of songs is going to diminish. There’ll simply be access to the songs whenever you want.” These are European music

streaming sites, giving access to hundreds of thousands or millions of song tracks. The listener picks out music they want, and the consumer’s list is saved to memory on the company’s computer. The listener doesn’t download a song, he accesses it online from the renting company’s computer. Free modes are paid for by advertising with limited listening time. A fee model gives greater access and higher download rates, but in Canada these services are not available, at least not yet. Meanwhile the RIAA is fighting tooth and nail against digital streaming and electronic copying, claiming piracy is devastating the industry. Despite the forced closure of Napster and the prosecution of a few music fans in lawsuits the big music industry slide has not stopped. RIAA CEO Mitch Bainwol lays the blame for declining revenues on the doorstep of countries with lax copyright laws. Says Bainwol, “The release of [a] report casts a damning spotlight once again on several nations with lax copyright protections and websites that brazenly traffic in copyright theft.” Canada is on Bainwol’s hit list along with China, Mexico, Ukraine, Spain, Germany, Luxembourg, Russia and Sweden. Part of Canada’s earlier attempt to help musicians with revenue lost to copying was through the creation of the levy on blank cassettes and CDs used to copy songs, which was increased by 40% in 2008. A similar push to apply levies to MP3 players and memory components failed, but appeals are going forward. Money collected is distributed as follows: 66% to eligible publishers and authors, 19% to eligible performers and 15% to record companies. Eligibility is decided by airplay and commercial sales. An enthusiastic supporter of the levy, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) says in the first 10 years the levy put $180 million into the hands of 97,000 Canadian artists.

For independent artists there is an irony here. When Donn buys blank CDs he is paying the money to music industry giants, both artists and record labels. South of the border the RIAA is unimpressed with the levy and claims $2.7 billion and more than 71,000 jobs were lost in the U.S. last year because of piracy. Part of the evidence for the piracy claim is the decline, not just in recorded music products like CDs, but in all music sales. While digital downloads increased by 34% in 2009 from 2008 the value of all recorded music declined in the U.S. by 12% to $7.7 billion, including digital downloads. Digital downloads weren’t even tracked by the RIAA as late as 2004. In 2005 they made up 6.8% of all sales, which, three years later, doubled to 13.5%. In early June 2010 Nielsen Soundscan announced that the sales of albums in the previous week dropped to the lowest number since it began tracking data in 1994. Critics question whether it is the music industry that is going under or simply the big record labels. In an interview done for the book The RAX Active Citizen Toolkit, Thom Yorke of the band Radiohead calls the corporate recording industry doomed. Yorke was quoted as saying, “It is only a matter of time – months rather than years – before the music business establishment completely folds.” Donn isn’t sure the large record labels will die. “The major record labels have simply had to refine their business model.” With CD sales declining the recording labels created the “360 deal”, in which every aspect of an artist’s career is now owned, to one degree or another, by the record label. Unlike the 1990s the biggest money these days comes from tours and merchandise, which used to be left mostly to the bands and their managers. Today, says Donn, “Touring for the major acts is a mega-stream of income now. Labels didn’t use to include that in their deals. Now they will.” The recording label takes chunks

of revenue from TV and advertising contracts, live performances, CD sales, online sales, and even phone apps.

For Better or Worse? So, in an era of piracy, falling corporate revenue and digital downloads are artists doing better or worse than in the old days? Donn says, “For distribution [the digital download] has been fantastic.” He adds, “A label isn’t really as needed as much. Most people in the business now have a manager, and the manager is connected to the music industry and can get them all the stuff and that’s the model now. There’s been a switch that independents can build a whole career on their own.” In the past, musicians that didn’t get a coveted spot with a major had a very limited chance at success for a simple reason. “If you go back 10 years, 20 years – independents never got radio play,” says Donn. Donn says the Internet makes his music, and every other independent, available to anyone in the world. Breaking into the market, he says, “It’s easier. My diehard opinion is it’s much easier.” His own business experience shows him that today there are several ways to get a career going, but all relate to the need to make a connection with people who can move your career forward. Donn is excited that the Western Canadian Music Awards, known

as BreakOut West will be coming to Kelowna October 14-17. The Awards will consist of three events, all open to the public. Events include a conference, festival and the awards presentation itself, but Donn says it all adds up to the most important opportunity: networking. He says, “The whole music industry from Canada comes to BreakOut West.” In his blog on BreakOut West (www.breakoutwestkelowna. com) Donn writes, “The music business is built on relationships. BreakOut West is really the first time that the music industry has came to Kelowna on mass. That allows local bands to start building connections with a large segment of Canada’s music business. For me I will be aiming to connect with a variety of booking agents, other bands, publishers, and music supervisors.” His own career took a jump when he found out that the people who pick music for television shows and advertisements have regular meetings open to musicians like himself. “If people connect with these people [at BreakOut West] this is a relationship that is going to allow you to save years in building your career. I learned in year nine that ‘Hey, TV placements are good.’” Donn adds, “BreakOut West is the best opportunity – for almost no cost really.” To hear more of Ryan Donn’s music visit his website at www.ryandonn. com. Okanagan Business Examiner / June 2010 7

The No-American Tourism Problem Unfortunately, we are not attracting the number of American tourists we’d like to in our valley. It’s becoming more and more evident that we have to depend on our Prairie provinces for our tourism business here, and to a lesser degree the rest of Canada, and the world. American tourists are not used to our high prices for just about everything. Wine and liquor are taxed so much we are not competitive, nor are we competitive in pricing for our food industry.

FROM THE DESK OF

DERRIKSAN GRAND CHIEF, WESTBANK FIRST NATION | GRAND CHIEF, UNION OF BC INDIAN CHIEFS, FOUNDING MEMBER

Our service is also not up to par. In our restaurants and bars, it is the exception to experience good service here compared to the U.S. Canadian service people feel that serving people is beneath them for the most part, whereas in the U.S. they make it a career.

Canadian’s don’t properly train their service people and, generally, it shows. We have a long way to go to attract the American tourist, and it will have to start with the government reducing the enormous

taxes on many, many items before we ever see a change. Noll Derriksan is Grand Chief of Westbank First Nation Lands, Grand Chief of the Union of British Columbia Indian Chiefs and owner of NC Derriksan and Son Enterprises.

Okanagan COnTInUED FROM PagE 13

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Painting by Jayes Tazer Derriksan, Age 6

Education

The Westbank First Nations has taken a much more individualistic Registration on just Now! approach. The band’s land north of West Kelowna has been the sight of intensive residential, business and commercial developments.

from the

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While the Band itself is prospering from an enormously increased tax base from no less than five large commercial developments and 8,000 non-band residents, the entrepreneurial spirit is embodied in a few key individuals who have gathered the land packages. In addition to leasing Kelowna Waldorf land, individuals like NollSchool Derriksan have built up several enormously successful businesses on his own. 429 Collett Road, Kelowna, BC V1W 1K6

8 Okanagan Business Examiner / June 2010

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N.C. Derriksan & Son Enterprises runs a development company, owns www.KelownaWaldorfSchool.com JSDS General Contractors, a heavy equipment leasing company, CA Promotions, Skyline Billboards, an executive travel service and a First Nation jewelry company. Derriksan is prominent, but not alone in his successes.

Alanridge Construction Building renovation is enjoying a renaissance. As the market for new construction, both residential and commercial, searches for a true equilibrium renovating existing space has become an attractive option. Alanridge Construction specializes in broad spectrum renovation, bringing new home construction finishing and project management to residential and commercial renovations throughout the Okanagan Valley. Alanridge owner, Mike Smith, worked with large new developers in Calgary and area for years. Late 2008 was the right time to make the move to the sunny Okanagan, where Smith launched Alanridge in January of 2009. Smith deliberately chose to keep the company focused on renovation and launched the company with the resources to be able to handle unique projects and more than one project at once. “As a company, Alanridge is really clear about what we want to accomplish, quality renovations with the capacity and expertise to be a ‘one stop shop’ for our clients. From project management to final design choices we offer expert service at every step,” says Smith. Smith recognizes the Okanagan is a ‘hyper-competitive’ market place, and Alanridge has quickly established itself as a trusted a reliable service company. Alanridge is the installation company of choice for Direct Buy. Building quality business relationships has been an integral part of Alanridge’s quick acceptance in the marketplace.

of working on this project was creating dual custom stair case in solid slab granite,” says Smith. “For this very unique part of the project we teamed with ‘Daryl of All Trades,’ who holds the patent on new stair design technology, Universal Treadmaster, which has the sole purpose of making and designing precise staircase measurements and installation.” Silver Sage Winery is located in the Golden Mile, the Oxbow Creek meanders through the property. Established in 1996 the winery produces Gewurztraminer, Merlot and many fruit based dessert wines. Cornelius Manola, project coordinator for Silver Sage Winery chose to work with Alanridge because of the rock solid recommendations he received from friends. “Mike and Alanridge delivered what was promised,” says Manola.

Pictured here is (top) the banquet room and (right) the residential foyer

ability to pick everything for their home in one location and then have the renovation get started and go ahead,” says Smith. “The store will allow them to make their choices, start the renovation and work with one company from start to finish.” The final element of an Alanridge project is quality, “There is a one year workmanship guarantee on everything,” says Smith. “We stand behind our work.”

The project moved forward so quickly in large part because Smith was, “So quick and very professional,” says Manola. “On the whole the project was good.” Alanridge has taken on multiple residential projects across the Valley in the past 18 months. Homeowners with properties built from the 1970’s to the mid 1990’s are all choosing to update their living situation, “We see tremendous demand for renovating. People seem to be choosing to ‘nest’ and improve what they have right now,” says Smith.

In spring 2010, Alanridge completed an extensive renovation of Silver Sage Winery located in Oliver. The project was split between residential and commercial uses, with retail spaces, a banquet room and three rooms as a B&B. The project had multiple crews and consistent project management on site to complete the renovation in time for the busy summer tourist season.

The next big project for Alanridge is the opening of their full retail shop in Kelowna’s downtown core at 1598 Pandosy Street. The retail space is a key piece of Smith’s vision for Alanridge to be an extended service renovation company. From faucets to paint colours, clients will be able to choose the finishing elements of their renovation in one place. Alanridge has partnered with Michelle Smith Design to offer full interior design services.

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Okanagan Business Examiner / June 2010 9

By Bobbi-Sue Menard

DESIGN

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Patents

PRACTICE RESTRICTED TO INTELLECTUAL PROPERTY LAW L A W C O R P O R AT I O N R E G I S T E R E D P AT E N T & T R A D E -M A R K A G E N T P H O N E : (250) 418-3250 F A X : (250) 418-3251 T O L L F R E E : 1-877-943-9990 E-M AIL : gordonthomson@shaw.ca

Tony Edwards, with Horsepower Intellectual Property Law in West Kelowna, sat down to explain some of the potential ramifications of the proposed law and a few of the surprising ways your business might be affected. ISP companies have been given a reprieve in C-32. The proposed Photo by Bobbi-Sue Menard changes allow ISPs to pass Tony Edwards of Horsepower intellectual Property through warnings from copyright Law says the new copyright act before Parliament is holders to the ISP customer in almost certainly going to have some unintended and cases where the copyright holder far reaching consequences for Canadian companies if may or may not be aggrieved. it is passed before Parliament recesses. The onus is left on the end user to defend their actions to the copyright holder, knowing that company and until the digital locks are put in once the customer has been warned, the ISP place by software vendors during upgrades, you may be compelled to give up the customer’s won’t know how your business will be affected,” identity. There is no doubt the ISP is ‘off the says Edwards. hook’ in the new legislation says Edwards. To Edwards the most interesting philosophical For Edwards, “The real question is how will change is the introduction of parody and satire the government balance the rights of copyright as legitimate fair dealing in regard to other holders against the market and political creative work. In the past Canadian courts ruled pressures of a generation that perceives the that parody and satire were not legitimate internet and media as being free?” defenses for copyright infringement. This shift is ‘radical’ says Edwards and it brings Canada Two other crucial questions: How will record closer in line with the U.S. companies be able to prove an infringer has relinquished ill gotten downloads? Will For the first time Canadians will be able to enforcement be worth the effort and expense? parody brands and other copyright eligible C-32 calls for statutory penalties, but the ‘hardship’ escape hatch could reduce damages for a penniless college student. The separate issue of digital locks on software will be a huge wake-up call for businesses says Edwards, “We are in for a digital hangover, after all the years of free and unlimited copying.” Software hasn’t been outright owned for years. Licenses for software are the real product and End User License Agreements (EULAs) contain fine print that slowly but surely filches control from the end user licensee. “When was the last time you read a EULA?” asks Edwards. “The enforcement of digital locks will highlight how much control users have given away.” The ready example is to look at how often your company backs up its information, which treads across various EULA agreements attached to different software programs. To prevent illegal copying, multiple downloads of software could be curtailed, affecting the interoperability of various software and systems that make your company tick. “You could have many EULAs in use in your

10 Okanagan Business Examiner / June 2010

work with a ready defense under the law. It is conceivable your company could be on the receiving end of this parody. A recent example is the BP logo, with satirical artist renditions of the stylized flower dripping with oil. In the end it comes down to politics. Bill C-32 is a massive undertaking on a short time schedule. Its first reading was held June 5, less than a month before summer recess. In the long term the issue won’t die, as Canada is signatory to multiple international agreements on copyright, and a target of the U.S, which claims we aren’t doing our part. Reconciling the divergent interests of the U.S. and Europe remains a challenge, including the ongoing free trade negotiations with the EU. Domestic interests, for politicians seeking votes, must be satisfied including a generation used to free access to digital media and businesses that rely on copyright for their living. Copyright law is always playing catch-up, and that defines the underlying weakness in any legislative effort. In Edwards opinion, if Bill C-32 is made law as it stands, “We are not going to understand the impacts until it is too late.”

Mover can Ruin your Credibility

Most business people have attended at least one networking event at some point. We show up dressed professionally, shake hands, exchange stories and business cards. As an entrepreneur and career/life coach I’ve spent a lot of time considering how effective these networking encounters are, based on the outcome after the event. In June 2009, I relocated to Kelowna in pursuit of a lifestyle offering more balance and the appeal of beautiful lakes and people. While most people told me the local industries primarily focused on tourism and winery, I quickly realized that most people were blinded to one of the largest industries here – entrepreneurship. Truly, everyone here is an entrepreneur and, as a result, you are likely to find a local networking event running just about every night of the week in Kelowna. Being new, I was obligated to do what most people here do: attend a handful of networking events to start meeting people and making contacts. What I found was that, instead of focusing on genuinely learning about others and their businesses, people often tend to be more focused on the number of business cards they hand out and how much they’re able to talk about themselves.

been urging the government less gets altit JOn summerland parking. In addition it is a conversation with goal ofalltalking I did this with 20 people and allattracting 20 indicated to give thethe industry the about attention from a Adam Less, founder they wanted the something I said I couldof companiesyourself breaks it can to keep the number that and what you do. Start out by being former half owner o Okanagan Falls provide. Can you guess how many of them work happening here. support film work across the interested genuinely in what others do. 3. Marketing, has sold takes a bOw in the followed up? One. country. Several of them, share of the busines spOtlight GenuinelypandOsy Help Others: bia Your main priority including Harold’s Custom As entrepreneurs we cannot control the market, struck out on his ow mOves ahead should be to find out how you can help others Okanagan Film Equipment, HollyNorth and new company is Pro the economy, or what our clients do or don’t be more successful whatBusiness they are trying Commissioner Jon The Southwith Pandosy Offset Rentals Creative Brand Stra do. One thingassisted we can control, however, is the are expected Summerland the might be – by helping Area othersinyou to open their doors in to achieve Improvement and uses the logo o credibility of our word and our commitment. Cannery Studios in its Mission district Kelowna Okanagan Falls. surprised at how much youofreceive in return.  “Altitude is Everyth People need to believe they can rely on us first move from West Kelowna is going before Kelowna 4. Do As You Say: Most importantly, do what Less believes his st before they take the chance to work us. story the In an with unrelated to an advantageous city council to make their combine creative sk province is moving to boost We brand ourselves by the little things we say you say you are going to do. If you say you will facility in Okanagan Falls. case. The new BIA has put experience in marke video and digital effects and do every day, which is a reflection of how call or e-mail someone – follow up, just as you Summerland told Castanet together a proposed budget He says, “I'm a grap work in the province by we run our company and treat our clients.  In said you would.  that the new property has of $124,000 annually, based artist and a writer, b order to protectspace your brand build yourthe tax credits better working for and extending on a rate of $1 per thousand At times, it is not what we do that tarnishes alsoour a strategist wit given to films credibility through networking, remember theto digital film productions including of assessed commercial career’s worth of ex media sectors. None following four points: 1. It’s Not The Number credibility and our business but rather what we 32,000 sq. ft. for staging value. Points of interest to developing brands a of that work occurs indo not do. members include parking, Of Cards Give Out: but more so the depth film shoots,You a separate strategic platforms Okanagan of conversations you have with the people that is currently, 3,000 sq. ft. carpentry moreentrepreneurs community to be more Fred Sarkarisignage, works with me.” but with the rise of the important in networking. You will create a more section, first aid and events, better lake access effective in their professional and personal life. He Canadian dollar to near effectiverooms, network for yourself and your business security a fenced and creating an identity for has worked with startups to some of the world’s parity film rather makers have by genuinely connecting person lot and three acres for with one the business area. largest organizations. Fred is also a Best Selling than giving out a certain number of cards. 2. Author. / www.fredsarkari.com / 250.575.0333 Stop Talking About Yourself: Don’t begin

Okan is a fr to pro Inform requi reliev of ma assoc

People would say they’d call or e-mail me to meet for coffee, but I would usually never hear from them after the networking event. At the next event they would say the same thing. As entrepreneurs, it’s important to realize that every little thing we do has an impact on our brand. Unfortunately, in the world of networking, our commitment to our word often has little meaning. If we are not going to follow through with our commitment and given word, we are better off not going to the networking event as it will ruin the credibility of our business.

Let us proble of IT, mana YOUR

We ar today mediu rangin a collo 70+ u

We ha stand techn to giv you d busin stand

If I can’t rely on someone to keep their word even before they have my business, I can’t imagine how I might be treated after they have my money. So I decided to do a social experiment.

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I went to one of the larger networking events in town and began conversations with the goal of learning what that person does. Then I would offer to provide something that would be of tangible benefit. I would give them my business card and say, “Please send me a reminder e-mail and I would be happy to forward the information to you.”

Okanagan Staffing Services Inc.

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Okanagan Business Examiner / June 2010 11

T 250.

Technology’s Wild, Wild West In mid-June, as part of its two-day conference, Metabridge hosted Tim Bajarin, the president of Creative Strategies, and a widely read columnist for PC Magazine. Creative Strategies works with 30 to 60 companies a year helping them identify technology trends that they can benefit from or that they must incorporate to survive and Bajarin talked about some of those trends. The Kelowna event was one of a series put together by Metabridge to connect local companies with the thinkers and doers of Silicon Valley in California. The B.C. event included several occasions for networking at social events, talks by Bajarin and Ethan Anderson, cofounder of Redbeacon (a service request industry) and a chance to

pitch business ideas to the VIPs brought up for the conference. Bajarin started with the recent, frantic history of the computer industry, specifically on the transition of information from analog to digital. That started, he says, in 1981. Bajarin projects that transition will take 50 years to complete, which puts us just over half way along the journey. He believes, “There is an amazing amount of opportunity still to come.” The opportunity will be both in quantity and quality. While the silicon chip is reaching capacity, that will not even slow down the rate of change. He says, “The path of innovation in the next 20 years will be more staggering than in the last 30.”

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12 Okanagan Business Examiner / June 2010

Photo by Devon Brooks

Corporate president and analyst Tim Bajarin (right) answers questions after giving a talk on where technology is headed at UBCO.

On the quantity side of changes wrought from the computer, Bajarin says, “Only one billion people have touched a computer in the last 25 years. The second billion will happen in the next five years.” With the advent of so many new electronic devices to access the Internet, like MP3 players, cell phones and new categories of computers, like Apple’s iPad, some people claim the PC is going to fade and die, but Bajarin disagrees. “The PC is not dead. There’s still a lot of life in it.” Projected sales of computers next year will reach 35 million for netbooks (very small, lightweight notebooks), 141 million desktops and 214 million laptop computers. Even if those estimates of desktop and laptop sales growing to 350 million units in 2011 is correct the number pales in comparison to the 1.2 billion cell phones expected to sell, of which 65% will be smart phones. Over the longer term cell phones are only the beginning. According to Bajarin, “Every device that we have is going to be connected to the Internet.” Looking backward he says every major product category starts at what he calls the “wild, wild West” stage of development. This is when competing companies all offer their own proprietary product and it is left to the consumer to pick which will

dominate. Eventually sales force a convergence and consolidation so that only one to three platforms are left, and even those agree on some standards. The PC went through that stage in the ‘80s and ‘90s and cell phones are there right now. But not for long. He predicts, “In cell phones there are 12 different platforms that will consolidate down to perhaps three platforms in the next 18 months.” Each product category also transforms itself as it develops, as the best revenue potential moves from manufacturing the product (as the PCs did in the 1980s and book readers are doing now) to one of software development, in which the money is made selling applications to owners. This is where mobile phones are today. In the final stage of development, which is where we find the PC in 2010, the largest revenue benefit comes from selling services to the end user because most of the abilities and consumer desires are already available in the market. Computer gamers are perfect examples – the big money now comes from selling online subscriptions to the computer gamers rather than the game itself. For any one who loves technology and its transformational power, Bajarin concludes, “We are living in one of the most exciting times in our lives.”

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Hiring Olympic Achievers A bunch of ex-Olympic staffers are on the market, shopping their resumes and seeking work proudly bearing the stretch marks, if not scars, of long hours, little money, and hard deadlines. Many of these people had their dream jobs or at least worked for a dream, embodied in VANOC, a company known for hiring for values and training their employees to do amazing jobs successfully. Many were willing to take significant pay cuts to be part of the vision for the best Olympic Games ever. In my humble opinion they succeeded in pulling off an incredible, wonderful, and powerful event. These are ex-employees who: • were inspired by excellent leadership and a powerful vision; • participated in creating an event the whole country is proud of;

• executed milestones and goals with military precision; • shared, and laughed and cried with friends who they haven’t known long, but have gotten to know intimately, and; • have memories that they will treasure forever. With fantastic experiences like that how many employers can measure up? There is something so awesome and energizing and addictive about success from a major team based event that it takes awhile for the buzz to go away. I have hired a recent university graduate and what I learned from the experience is that I’d prefer to be the second employer. Let another company deal with the aftermath of a plummet down to

earth that occurs once those fresh faced grads encounter the real world in the form of a boss who expects results (no matter what happens in their personal lives) and teammates who may not be as book learned, but who have forgotten more than that new grad knows about the business they are in. Beyond that drubbing of their ego, there is also the awakening understanding that they aren’t going to make $60K out of the gate. Ex-Olympic staffers, while coming from a very different place than a university, may have similar difficulty adjusting. Additionally, ex-Olympic staffers will often have a high sense of self worth after having accomplished amazing things. They may not find it easy to assimilate into the typical corporate world where we aren’t as disciplined with our vision, mission and values as we should be. Typical companies meander along and often add what and who they need when they need it (or slightly thereafter). Few companies are truly strategic, have a plan, and carry it through. If the latter describes your company, and you are considering an ex-employee from VANOC, think about giving them the opportunity to help you create and execute a vision and plan. They were hired for their commitment to values such as team and sustainability and personal characteristics like resourcefulness and adaptability. That, plus the VANOC experience, formed an effective leader of change that can likely do it again if the adage “past experience predicts future success” holds true. Money can also be an issue. Great achievers expect great compensation. I remember an applicant for a reception position who used to have her own business. She

14 Okanagan Business Examiner / June 2010

complained she wasn’t making enough money because of all the additional skills she brought to the table. I explained she was making the top of the range for a receptionist, because she brought a lot to the table, but we couldn’t pay her like the head of the company or even the head of the team, because the job wasn’t worth that. In addition these ex-Olympic staffers may bring a wealth of experience, but the company hiring them has to consider existing employees as well. One of the most effective ways to increase dissatisfaction and reduce loyalty is to bring in new employees at the same salary or greater salary than the other people doing the same roles. People talk. Two suggestions to get around Olympian expectations: 1. T ake the time to explain your company’s compensation practices and how the new hire will be paid in a manner that is fair to their colleagues (and the competition). 2. Demonstrate how your organization will continue to develop and allow them to grow (because that is a powerful message for people who have just successfully completed a major accomplishment and are looking for the next one). Of course, you must follow through, so don’t make these promises unless you can keep them. Lastly after such an intense experience, many ex-Olympicers should take a break because they are burned out. Rather than “striking while the iron is hot” they will get great value from taking the time to decompress. And in that decompression process, they will gain perspective. So if you are an employer looking to hire ex-Olympic staffers (or others who may have come from an intense pressure cooker of a Continued on page 28

Oliver’s Big Facelift Colour the Town of Oliver hopeful By Devon Brooks

Mayor Pat Hampson, quite candidly, has this to say about the local economy: “Sluggish. I’d describe it as sluggish.” The relative lack of growth there in the past few years shows this to be true but these days, there are some bright spots, quite literally, sprinkled about the town. They arise from an effort to spruce up town businesses with a new coat of paint. That idea came from Alberto and Tracy Veintimilla, who own Alberto’s Decorating Centre. Tracy relates that during the last municipal election people wondered how the town could invigorate itself. Using $150,000 from a Western Economic Diversification grant, a scheme was worked out for businesses to get up to 75% of the labour costs paid for to a maximum of $5,000. The funds are available until the end of the federal fiscal year next March, but Tracy says painting

outdoors should be done during the hot dry months. She hopes all buildings will be completed by this October. The Veintimilla’s did their bit by talking to Pittsburgh Paints, who agreed to provide paint for the beautification project at 55% off, if they would use their paint exclusively and pick from one palette. A “colour committee” settled on the Hacienda colour set. With about half of the $150,000 used to date, eight buildings have been painted (including the Mesa Hotel, which burned down at the beginning of June), three more are part way through the application process and others are coming in. The Mesa Hotel fire has opened up another hole in the downtown front. Other vacant spots have not filled in and Mayor Hampton calls them, “Black holes.” He says his council is discussing incentives to persuade business people to fill them in.

Nothing has been decided yet, but the Mayor says any inducements will be done on a case-by-case basis. One possibility is relaxing parking requirements currently in place for every new building. Another empty spot about to appear in Oliver’s downtown is the Buy-Low store. The grocery store is relocating to the largest commercial development to hit Oliver in years. South of town a new 75,000 sq. ft. plaza hosting a bigger Buy-Low, a

Canadian Tire and a Tim Horton’s will go up on the old Southwinds Hotel site. Tracy says she isn’t worried about the new plaza taking business away from downtown. She says, “My hope is Canadian Tire will bring people here because people that weren’t shopping here were going to the Canadian Tire in Penticton.” Other large developments the town anticipated have not Continued on page 16

The store fronts shown in these pictures have all been repainted in Oliver’s beautification project.

Okanagan Business Examiner / June 2010 15

Oliver

OLIVER SNAPSHOT

Continued from page 15

Incorporated: 1945

come to fruition. Oliver invested considerable money to launch its Wine Village concept, a large scale development project to compliment the town’s designation as ‘The Wine Capital of Canada’.

Area: 4.95 sq. km Located in the OkanaganSimilkameen Regional District Statistics Population 4,783 (2009) Population growth rate for 20082009: 4.1% (B.C. 1.6%) Population aged 65+ in 2006: 35.1% (B.C. 14.6%)

The first partner in the project, Bellstar Hotels & Resorts pulled out. The town went ahead and, Stephanie Johnson, Oliver’s Director of Development Services, says lot realignments and right of ways should all be in place this summer. While Mayor Hampson describes the project as currently lying “fallow” he says another developer has kicked the tires of the idea.

Alberto and Tracy Veintimilla, owners of Alberto’s Decorating

Next door the Osoyoos Indian Band is moving ahead with its golf course expansion and resort development.

Centre, are credited with being

While there will be no tax benefits for Oliver, Hampson is excited anyway because development of a major resort just across the town

border on the reserve will spark growth in Oliver. He says, “It will be a significant benefit to Oliver if that development goes ahead.”

instrumental in the organizing efforts to repaint and spruce up Oliver’s store front businesses.

Help Us Support Our Local Food Bank Feed the Valley is an innovative community partnership aimed at tackling hunger in the Okanagan, Similkameen and Thompson valleys. All of the food collected and money raised in your community stays in your community. You can make a food or monetary donation at any Valley First branch or online at www.feedthevalley.ca.

www.feedthevalley.ca

16 Okanagan Business Examiner / June 2010

Employment & Labour Force Total labour force: 1,625 people Labour force as % of total population: 37.2% The three biggest employer sectors in 2006: health care & social assistance 270 (16.6%); manufacturing 190 (11.7%); retail trade 155 (9.5%) Income Median household income (2006): $50,296 (B.C. $65,787) Average income from those filing tax returns (2007): $31,828 (B.C. $40,802) Main source of income for residents

in 2007: Employment (46.4%), Pension (24.5%), Investment (12.5%), Self-employed (5.2%), Other (6.4%) Unemployment Rate for Thompson/ Okanagan (2009) 8.7% (B.C. 7.6%) Business Business incorporations: 12 (2009) 22 (2006) Business bankruptcies: n/a Chamber of Commerce members: part of South Okanagan Chamber Building Permits New residential units built: 13 (2009) 118 (2006) Typical house value: $288,169 (2009) $176,079 (2005) Typical house taxation: $2,441 (2009) $2,227 (2005) Value of new residential construction: $4.2 million (2009) $18.5 million (2006) Value of other construction: $0.9 million (2009) $1.0 million (2006) Most numbers courtesy of BC Stats Community Facts (www.bcstats.gov. bc.ca)

Who Speaks for Okanagan Falls? Until lately it seems almost no one speaks for Okanagan Falls or at least they say very little. Okanagan Falls is an unincorporated rural community, and as such, it falls under the auspices of the Regional District Okanagan-Similkameen (RDOS) and the provincial government in Victoria. A search online for Okanagan Falls comes up with a number of tourist listings while the provincial government restricts its references to notes about environmental concerns and recreation opportunities. The South Okanagan Chamber of Commerce’s community profile is a single line about the Okanagan Falls’ economy: “The community was founded on agriculture and today provides fresh fruits and vegetables, delicious dried fruits and award winning wines.” The RDOS has an ‘Economic Development’ page that notes the population of Penticton, the pretty environment and the vital information that Okanagan Falls lies in the northern extension of the Colorado River basin. The Colorado River? That they have mistaken the Colorado River for the Columbia River is as good a symbol as any of the general neglect that Okanagan Falls has experienced. The only major employer in town, Weyerhaeuser, has shut down, fruit farming is on the ropes, ranching is providing poor returns, land development during the past decade, for the most part, bypassed this community despite its spectacular setting, and there is no real government agency that has stepped up to the plate to revive the battered economy. Perhaps that is changing. Annette Antoniak is the Economic Development Officer for RDOS,

Electoral Area D and she is in a new small office in the town’s commercial plaza so people have a more direct venue to communicate either complaints or find out about opportunities. For her part, Antoniak believes that encouraging individuals to set up their own business provides the best chance. “We’re trying to encourage people to become entrepreneurs.” She acknowledges that developing the rural community depends on a change in attitude. At least some people prefer it small, and see no problem with it functioning as a bedroom community for Penticton. Unfortunately her office has little to work with. “We have very little budget, but we try to leverage everything we do.”

Photo by Devon Brooks

Annette Antoniak, the Economic Development Officer, Electoral Area D of the RDOS, in her new Okanagan Falls office hopes her presence will help towns people to organize and restart a stalled economic engine.

If development along the main street of Okanagan Falls has been spotty, Antoniak is hoping that will change. She says, “We’re trying to lay a foundation for investors.” There is some preliminary talk going on to redevelop the Weyerhaueser site into an industrial park of some kind. Antoniak names Ron Bell, Jim Morrison and Larry Lund, three prominent Penticton business men, as the names behind the negotiations. Antoniak is optimistic things can be turned around. “The biggest thing I’ve noticed is that this town is absolutely ripe for development. It just needs to find its identity.” There are trial balloons going up about the idea of incorporation. That way people would have a direct say in providing the community with direction, and possibly creating jobs, opportunities and growth in a small village that has been too often forgotten by the bureaucrats in the past.

Your hosts Bill & Dawn Reid 34881 97th Avenue Oliver, BC V0H 1T0

250-498-4867 CATERING AVAILABLE FOR WEDDINGS AND PARTIES Okanagan Business Examiner / June 2010 17

PROJECTS ON THE GO

Oliver 10332 350th Ave (institutional new) – South Okanagan Secondary Addition Owner School District No 53 – 250-498-3481 Architects Killick Metz Bowen Rose Architects – 604-732-3361; Bevanda Architecture – 250-492-1005 Project Addition to S. Okanagan Secondary – library, computer lab, science classrms, science labs, new gym, 14 new rooms, offices Stage Construction Start – site work underway – construction start anticipated July/10 34017 Hwy 97 (commercial new) – Shopping Centre – Southwinds Developer Pacific Capital Real Estate Group c/o Jim Pattison Group – 604-688-6764 Architect Hywel Jones Architect – 604-733-1599 Project New shopping centre – 8 structures – approx 75,000 sf – Buy Low Foods – Canadian Tire – 4 restaurants – 274 parking spaces Stage Construction Start – site preparation underway 34231 Elliot Rd (industrial new) – Heavy Industrial Subdivision

32830 Tinhorn Creek Rd (commercial new) – Tinhorn Creek Winery Restaurant

large retail outlet – 125 site recreational vehicle resort – approx 60 plus multi-family units

Owner Tinhorn Creek Restaurant – 250-498-3743

Stage Proposed – application for exclusion from the Agricultural Land Reserve submitted

General Contractor Greyback Construction – 250-493-7972

8015 Sparta Dr (institutional new) – Aquatic Centre

Project New restaurant at existing Tinhorn Creek Winery – approx 18,000 sf

Owner Town of Osoyoos – 250-495-6515

Stage Construction Start – underway – construction completion anticipated spring/11

Osoyoos 1200 Rancher Creek Rd (mixed-use dev) – Spirit Ridge Residence Club Phase 3 Developer Bellstar Hotels & Resorts – 403-313-6375 General Contractor Greyback Construction – 250-493-7972 Project New townhouses – 27 units Stage Construction Start – anticipated October/10 4816 89th St (institutional add/alter) – Integrated Medical Clinic – Sagebrush Lodge Construction Manager Spiegel Skillen & Assoc.– 604-732-0707 General Contractor Greyback Construction – 250-493-7972

Architect Bruce Carscadden Architect – 604-633-1830 Project New aquatic centre – 8,900 sf – 90 sm leisure pool with four 25 m lanes – 15 person hot tub Stage Proposed – financing options under review

Okanagan Falls 1655 Maple St (mixed-use dev) – Light Industrial Park – Affordable Housing - Vineyard General Contractor Wildstone Construction & Engineering – 250-493-3947 Project New mixed use development on 155 acres – 60 acre light industrial park – 50 acre affordable housing park – 40 acre vineyard Stage Construction Start – anticipated late 2010

Stage Planning – market research underway

Stage Development Permit Application – approval anticipated Sept/10

4205 Oleander Dr (multi-family new) – San Verbena Beach

Consultant Urban Connections – 250-495-0499

Partners Osoyoos Indian Band Dev – 250-498-3444 Watermark Asset Mgmt – 604-659-4763

Project New townhouses – 3 storeys – 29 units – roof top decks – wood frame and concrete stucco – above ground parkade

Project New mixed use resort development – 450 units to be built in 5 phases. Phase 1: 28 two storey & 28 one storey townhouses. Phase 2: 4 storey inn with 100 units. Phase 3: 106 two storey and 48 one storey townhouses. Phase 4: three storey lodge with 500 units. Phase 5: 4 storey lodge with 90 units

Stage Construction Start – anticipated summer/10

Stage Construction Start – anticipated spring/11

Project New mixed use development on 8.83 acres –

18 Okanagan Business Examiner / June 2010

4927 Main St (mixed-use dev) – Hwy Commercial – Vehicle Resort – Multi Family Developer Pembrough Developments – 604-794-7876

Osoyoos Building Permits 3623 Sawgrass St $400,000 residential new – SFD, 3908 sf Contractor: Paradise Builders – 250-495-7172

Okanagan Falls

Stage Planning – for space (approx 1,500 sm) not being used by the Interior Health Authority underway

Construction Manager Revolution Developments – 604-255-5860

10756 350th St $35,000 residential add/alter – garage & workspace, 1196 sf Applicant: Scott Stefishen – 250-485-2627

Project New mixed use development – approx 45 site campground – vineyard and winery

Project New industrial subdivision on 3.9 ha – 14 industrial lots to be sold and developed separately

Owner Bellstar Hotels & Resorts – 403-313-6375

11317 350th St $371,000 residential new – SFD, 2213 sf Applicant: Marie & Joaquim Goncalves – 250-498-2883

Owners Rep C21 Development Group – 250-490-9026

Developer Fowler Products Canada – 250-498-6688

Architect Denis Turco Architects – 604-320-0881

Oliver

8098 92nd Ave $300,000 residential new – SFD, 2560 sf Contractor: Heartwood Homes – 250-542-0098

3500 Hwy 97 (mixed use dev) – Vaseux Village

Project Renovations to Sagbrush Lodge for an integrated medical clinic – space for 7 physicians – extra space to be leased to related businesses

Tuc-El-Nuit Drive (mixed-use dev) – Nk Mip Canyon Desert Resort

OLIVER & OKANAGAN FALLS BUILDING PERMITS

1631 Maple St (industrial new) – Solid Waste & Recycling Facility

Project New industrial solid waste and recycling facility – 2 storeys – 1,470 sm – offices – vehicle wash bay Stage Rezoning Application – approval anticipated summer/10 4274 McLean Creek Rd (mixed use dev) – Hotel – Winery – SFDs Owners Rep Urban Connections – 250-495-0499 Project New agritourism development – boutique hotel – winery – vineyard – 7 SFD lots Stage Rezoning Application – and development permit application submitted

Lot 7 4400 McLean Creek Rd $184,000 residential new – SFD Contractor: Siva Construction – 250-492-2626 4287 McLean Creek Rd $340,000 accessory bldg – winery building, suite Contractor: Barnett Construction – 250-496-4234 123 4400 McLean Creek Rd $208,000 residential new – SFD Applicant: Frank & Barbara Giurissevich 149 4400 McLean Creek Rd $386,000 residential new – SFD Applicant: Merle Morgan & Brian Harrison

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Following throughmy onfirst collections can berole, an I When I accepted management intimidating task. We worry about offending was determined to find the recipe for perfect our gets altitude vernOn Chamber customers and have them not like us. The next leadership. I tried outtalks different styles, used vernOn Adam Less,time founder and like you, asktO this sounds yourself whether several techniques and put many theories into Chamber former halfyou owner Think feelofflush enough to extend an unlimited, rphy, play. has sold his loan to the Thecustomer Greater Vernon interest-free who falls na.Marketing, Over Ibehind failed miserably. business and Chamber Commerce on payment. Here are aoffew simple cedshare of the his own. His announced its newest strategies to help make sure you are paid onisnâ&#x20AC;&#x2122;t a Giftstruck out on Then I realized the key to sound leadership newofcompany is Propeller program to better connect timely basis: l line found in a manual. Just like parenting, you can Creative Brand Strategists, with its own members. business 1. Require that new customers submit a credit know everything about how to do it right, but and uses the logo of The 12@12 membership come application and actually check their credit when you are doing the job, it all comes down is Everythingâ&#x20AC;?. feedback program involves Ifâ&#x20AC;&#x153;Altitude I references or, alternatively, require new to you. his strengths nine Chamber members reLess I believes customers pay in cash; You have to be real. sitting down with two staff combine skills with orders, I creative 2.inDo not continue tomembers sell to customers who experience marketing. andcredibility one board take on In other words, you have to have repeatedly fail to paymember on time.â&#x20AC;&#x153;to Remember, a sale He says, â&#x20AC;&#x153;I'm a graphic discuss the and authenticity. Employees, just like children, not complete the money in your hands; artist and aiswriter, but I'm until issues that is most affect see right through discomfort, dishonesty and ot of also a strategist with a penalties their business today.â&#x20AC;? The 3. Apply strict disingenuous gestures. on late payments, een careerâ&#x20AC;&#x2122;s worth of experience meetings willofoccur including surcharges and/or loss creditmonthly city still aand tricky concept, You have developingItâ&#x20AC;&#x2122;s brands andthough. will continue untilto privileges; ds. be real yet still build an effective relationship strategic platforms behind June of this year, when that 4. Contact â&#x20AC;&#x201C; preferably call - customers with your team to inspire greatness and will fulfillbe me.â&#x20AC;? their effectiveness emand of immediately payment of overdue the potential for of the organization. Itâ&#x20AC;&#x2122;s meeting aaccounts. fine line reviewed. Each will h. being genuine and real optimizing your beand based on one business Growth in business and delinquent customers ng on effectiveness. are not the only reasons cash flow comes under o recalls pressure. A new hasperson money tied The manuals can company still help,often but the ok on up in inventory and other assets like equipment ney and vehicles. Itâ&#x20AC;&#x2122;s important to know the tantially difference between whatâ&#x20AC;&#x2122;s necessary and whatâ&#x20AC;&#x2122;s Okanagan Biztex Inc. ent and â&#x20AC;&#x2DC;niceistoa fresh haveâ&#x20AC;&#x2122;. new alternative

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holding them needs be someone people trust.

Credibility makes a big difference in the workplace. If employees find their boss credible they are likely to:

â&#x20AC;˘ Feel proud of the organization and refer others to do business and join the team â&#x20AC;˘ Feel a strong sense of team â&#x20AC;˘ Share a personal connection and alignment of values â&#x20AC;˘ Have a sense of ownership When people lack respect for their manager, employees are likely to see the glass half empty and:

â&#x20AC;˘ Work less diligently, requiring more direct 1I 5' monitoring. -BLFTIPSF 3PBE ,FMPXOB #$ &NBJM ECÂžOBODJBM!TIBXCJ[ DB â&#x20AC;˘ Be more motivated by money. XXX CDCFOFÂžUQMBOT DPN â&#x20AC;˘ Criticize the organization. â&#x20AC;˘ Look for another job. â&#x20AC;˘ Feel unsupported, unappreciated and certainly unmotivated. Bottom line: People donâ&#x20AC;&#x2122;t quit companies, they quit leaders. If people do not believe, trust or respect their leader, they will leave and find a

So, what makes a credible leader? â&#x20AC;˘ Honesty â&#x20AC;&#x201C; This is by far the most important ingredient. Whether on the battle field, shop floor or boardroom, people want to be sure the leader is worthy of their trust before committing to following. Is the leader principled, ethical and truthful? We want to be led and not misled. â&#x20AC;˘ Vision â&#x20AC;&#x201C; A leader, after all, is leading into the future and has a clear understanding and an idea about what the future holds and how to best get there. â&#x20AC;˘ Competence â&#x20AC;&#x201C; Track record and ability to get things done. â&#x20AC;˘ Infectious Energy â&#x20AC;&#x201C; Think about Obama, Oprah and the Dali Lama. They are inspiring, positive, and magnetic. They give hope and confidence about the future. To find these features in yourself, you have to look inward. Since a leaderâ&#x20AC;&#x2122;s greatest quality is honesty, it all starts with self-awareness and being honest with yourself. Figure out what makes you tick. Understand your strengths and play to those and manage your weaknesses. Managing your weaknesses may be exhibiting patience, controlling your language or temper or being more of a cheerleader than comes naturally to you. The genuine factor comes in how you behave in dealing with people, problems and pressures.

to providing your

To ensure you Technology have enough cash is to prepare Information a cash flow statement. This statement requirements & to relieve and you of the stresses forecasts tracks money flowing into and of managing the problems out of the business as it changes hands. A associated with computers. cashLet flow statement us manage the reflects sales when they are confirmed, when payment is received problems andnot frustrations IT, leaving to are incurred, rather when and of costs whenyou they manage what you do best, payment made. YOUR is business.

If you know that you can come across as too direct in an e-mail, use the phone or talk face-to-face. If you know that you tend to be distracted by your blackberry when in meetings, turn it off or donâ&#x20AC;&#x2122;t bring it. If writing thank you notes and buying gifts for your team for a great job is not your style, celebrate successes by saying thank you directly and spontaneously if that fits you better.

are a small The We mistake manycompany business owners make in today serving small to forecasting is bundling inventory and production medium size businesses, costsranging with from related two revenues users to in neat little a collocated network of monthly packages. Essentially, they assume the 70+ users. net of those two figures will fall into their hands have set the everyWe month in the way of cash. Not so. standards of our

Eat some humble pie when needed. Admit your missteps and weaknesses. Itâ&#x20AC;&#x2122;s a sign of strength when leaders can reveal their human side. Itâ&#x20AC;&#x2122;s a matter of recognizing who you are and figuring out how best to inspire by staying real. Remember, the staff will see right through you. Let them see the real you.

technicians very high; Realistic cash flow projections can save you the to give you the support that heartache of fatal cashyour deficits. Plan ahead to you demand to keep running to the coverbusiness shortfalls, and resist the temptation to standards you expect.

spend every cent as it comes through the door. That makes for a healthy business and takes a lot of the stress out of financial management. With stress levels down, it also makes for a healthier you.

Lorraine McGrath, MBA, of McGrath Executive, is a corporate director and advisor to businesses that are driven to succeed. Her achievements in business, community-giving and role-modeling have been recognized with several significant awards including Distinguished Alumni, Woman of Distinction, Woman of the Year and Honourary Fellow. www.mcgrathexec.ca.

Womenâ&#x20AC;&#x2122;s Enterprise Centre is the go-to place for BC women business owners for business loans, skills T 250.300.7551 | F 250.491.0266 | E jdawson@biztex.ca training, business advisory services, resources, publications and referrals. Call us at 1.800.643.7014 or email info@womensenterprise.ca from anywhere in B.C. 20 Okanagan Business Examiner / June 2010

place that they believe offers more hope for a bright and prosperous future.

February 2010 Okanagan Business Examiner

National Aboriginal Business Opportunities Conference On September 14th and 15th many of Canada’s most high profile Aboriginal business leaders will congregate in the southern interior of British Columbia at the Osoyoos Indian Band’s new state of the art NK’MIP Conference Centre for two days of networking and dialogue on the future business landscape in Canada. Chief Clarence Louie will be the host for the conference which is being organized by Southern Interior Events Management. Also in attendance will be representatives of over 150 of Canada’s most prominent private sector businesses interested to learn how they can work collaboratively with First Nations and other Aboriginal groups. The focus of the conference will be to generate conversation about how the private sector can work more equitably in future ith Aboriginal communities and businesses to create a new era of joint-ventures and business successes. Renewable energy is a big focus for Canada at this time and many Aboriginal groups are already in discussions with Independent Power Producers (IPP’s). A number of “Best Practice” models of energy partnerships will be showcased and the provincial government will have staff in attendance to explain their new Clean Energy Act and the opportunities it will create for both First Nations and IPP’s.

Both days of the conference offer significant networking breaks as well as breakout rooms for one-on-one meetings with potential investors and business partners. A banquet dinner is planned for the first evening followed by a charity golf tournament the next morning benefiting the Osoyoos Indian Band Youth Centre. Day 2 will close with the opportunity for delegates to meet in private and further their discussions around future business opportunities.

Host – Chief Clarence Louie

This is a unique opportunity for Aboriginal and private sector business leaders to meet and work collaboratively on new ways to move Canada’s economy forward. Group rates have been arranged for delegates at the Osoyoos Band’s world class Spirit Ridge Vineyard Resort and Spa. To register for the conference contact the conference organizer: Geoff Greenwell – Toll Free 866 284-8322 or geoff@okanaganevents.ca

Need a new and interesting way to tell your business story? We can help. Let’s face it, in today’s economy companies are careful how they market their business. At Prosper Media Group Inc. we understand your needs of achieving the maximum return on all your advertising investments. Our creative team and custom publishing A good division can assist in reaching your ultimate hair day marketing goals and deliver results while fully conscious of your budget. Let us guide your business to reach your corporate objectives and increase your bottom line. For a personal consultation contact one of our marketing specialists at

Access to venture or investment capital is often a challenge for Aboriginal groups so there will be several companies in attendance who specialize in providing the much need initial seed capital that helps kick start business ventures.

WH MAGAZINE ILHOG WR 3ODWH MAGAZINE ILHOG WR 3OD

for over 14 which has been in existence of the Grower’s Journal, for both the up to date information Field to Plate is an extension quarterly and will provide s goal is to years. Field to Plate is published of the agricultural regions of B.C. Field to Plate’ producers food we eat. consumer and the food on your plate and the actual the source of the food bridge the gap between and living. quality, sustainable eating is to promote local, fresh, food we eat and Field to Plate’s mission about the source of the inform and educate readers Each issue will inspire, FEATURES that get it to the plate! the steps along the path INCLUDE THE FOLLOWING STANDARD

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• Farmers’ Markets Directory about food production • What you need to know much more • Culinary Tourism ... and the spring, summer farmers’ markets (during through food retailers, Fruit Growers’ Field to Plate is distributed mailed directly to the B.C. schools, book stores and and fall), wine stores, culinary Institute Members. Association and B.C. Wine Notes ARTWORK DEADLINE

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Okanagan Business Examiner / June 2010 21

Movers& Cameron steps down at BCWI

Lisa Cameron is stepping down from her position as general manager at the B.C. Wine Institute, the body charged with promoting British Columbia’s VQA wines. Cameron was the Wine Institute’s communication manager until she accepted the promotion to GM in August 2009; although she had been working in the position since the resignation of the previous general manager a few months earlier. The Wine Institute has not found a replacement, but Lindsay Anders, the current

communications manager says, “The BCWI Board of Directors is in the process of finding a suitable replacement.” Flaherty tries for

modern Securities Act

Finance Minister Jim Flaherty is attempting to give Canada one set of securities rules under one regulator, a process that has been talked about, and shot down, at least once a decade for a half century. The usual sticking blocks are in place again, namely some provinces are reacting against the unconstitutional right of the government to take away their rights. Every other developed country has one national securities regulator, but under our 1867 mindset the securities acts are still looked after by the provinces resulting

in 13 different rule sets. The two provinces that have come out screaming this time are Alberta and Quebec. Flaherty told the Globe and Mail that along with getting Parliamentary approval, “We’ll be asking the Supreme Court of Canada a clear question: is the next proposed Canadian Securities Act within the legislative authority of the parliament of Canada?”

West Kelowna’s first Nightclub

A proposal for a new nightclub, dubbed The

Red Barn, by developer Noll Derriksan is in front of the Westbank First Nation. The nightclub will have a country western

theme and, according to Derriksan, will include a mezzanine for VIPs with its own ‘Shooter Bar’. The main floor will have its own bar, seating and a dance floor. The proposal is for a 1.2 acre lot at the corner of Highway 97 and Elk Road.

Prairie. The company was started in the small town of Sexsmith, Alberta before moving into the neighbouring town of Grand Prairie. Beelineweb.com opens new/old Building

Ehmann Printing

joins The Menzies Group

Ehmann Printworx was formed in 1973 and taken over by the founder’s son, Vic Ehmann in 1977. This year Vic retired and sold the family firm, with its 21,000 sq. ft. facility in Kelowna to The Menzies Group of Companies. Included in the deal is the spinoff operation, Canadian Signworx. The Menzies Group owns printers in Edmonton, Calgary, Kamloops and Grand

When Beelineweb.com owners, President Lauren Gaglardi and CEO Ched Gaglardi, decided they needed new space they made a commitment to have the most environmentally friendly and useful office space they could. They chose architect Jim Meiklejohn to renovate an old semi-industrial

Chris Gaglardi photo

Simon Chang photo

A big THANK YOU to some of our loyal and valued clients: Apchin Design Group Atomic 55 BC Tree Fruits Boyd Autobody Calibre Advertising Campion Boats Carpool.ca Culos Group of Companies DB Design End of the Roll Fortis BC Harbercraft Boats Ignite Design KGH Foundation

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22 Okanagan Business Examiner / June 2010

&Shakers building on Highway 97 in Lake Country. The building features locally sourced wood, recycled glass countertops, ‘cradle-to-cradle’ carpet tiles, low-flow plumbing fixtures, ultra-efficient hand dryers, window shading made from recycled fabric, photosensitive lighting, and bamboo flooring (a rapid-growing, renewable alternative to traditional hardwood). The office is heated and cooled by a geothermal system that uses no ozone-depleting substances. Outside, the landscaping features water-sensible plantings and an organic vegetable garden.

that brings “network traffic monitoring and management solutions to small and medium enterprise companies.” It has tapped into UBCO’s research capabilities with a partnership to develop, says UBCO, “new methods of database storage and complex queries that enable flow and network data monitoring and reporting in large, high-performance network environments.” The point is to find significant savings for companies in their data processing, which can be substantial for larger companies. The research is partly funded by a Natural Sciences and Engineering Research Council of Canada grant of $24,000.

Advancing Networks aim of new Partnership

McCulloch merges

Vineyard Networks, a Kelowna-based company, describes itself as one

with BDO

Kelowna-based accounting firm Bill McCulloch &

Associates has merged and is now part of BDO Canada.

Penticton Tourism takes on new

Marketing Manager

Jessie Campbell has joined Penticton & Wine Country Tourism as its new marketing manager. Campbell gushes that this is a dream job for her, “I’ve literally been waiting for this opportunity to come available.” She took up the position in early June after leaving her last position at Kelowna’s Think. Marketing.

Tantalus comes of Age

Kelowna’s oldest winery unveiled a million dollar facelift last month. Tantalus Vineyards is the name for the acreage with the oldest grape plantings in the Okanagan,

Tantalus Building

first grown there in 1927. It was later taken over by the Dulik family, who ran the farm for more than 50 years and first planted vinifera wines, starting with Riesling grapes, in 1978. It was purchased by Eric Savics in 2004, who had many of the grapes replanted and committed to rebuilding the winery’s

infrastructure. Recently a new winery building finally opened, the first in Canada to be LEEDS certified.

Delta C selling in Malaysia

Delta C, the Enderby-based oil-monitor manufacturer, says it is has signed up Hyperwave Systems Engineering to distribute its monitors in Malaysia. Water content in oil is a huge issue for oil producers and Delta C makes some of the best monitors for gauging the extremely low amount of water that is acceptable. The company sells its products around the world but is actively trying to expand its network of suppliers. Says owner Continued on page 28

p. Ukrainetz Law Corp. Labour Relations, Employment and Human Rights Law

PROVIDING STRATEGIC LEGAL REPRESENTATION TO UNIONIZED AND NON-UNIONIZED EMPLOYERS THROUGHOUT THE THOMPSON OKANAGAN. - Veronica M. Ukrainetz

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Bill McCulloch & Associates and BDO Canada Ltd. are pleased to announce the merger of their professional practices. Our new union, operating under the BDO name, will expand one of the most comprehensive financial recovery practices in the country to offer a wider range of services to clients experiencing financial difficulties. Kelowna 300 – 1632 Dickson Ave 260 – 1855 Kirschner Rd 250 763 6700 250 979 4357 Penticton | Vernon | Kamloops | Salmon Arm | Cranbrook Toll Free 800 928 3307 | www.bdo.ca BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

Okanagan Business Examiner / June 2010 23

The Fuel Survey Results 83 respondents

Jeff Rubin is the former chief economist of CIBC World Markets, and the author of Why Your World is about to Get a Whole Lot Smaller and a columnist for the Globe & Mail. Since oil supplies have peaked Rubin contends that regardless of whatever new supplies might be discovered, the effect on prices is inevitable. They will be forced upward sharply, causing the cost of transportation to go up very quickly, which will affect every facet of life and business around the world. 1. Rubin believes that oil will hit $100 a barrel before the end of this year and go to $200 in 2012. Do you believe that is going to be the case? Yes Probably It’s possible, but doesn’t seem likely No I don’t believe anyone has any idea I don’t have any idea

9.6% 18.1% 43.4% 19.3% 9.6% 0.0%

2. Rubin claims that sub-prime mortgages or no, the main culprit that caused the recession of 08-09 was oil hitting $150 a

barrel in 2008. Do you think that’s true? Yes 9.6% Maybe 15.7% A factor sure, but not the main one No

49.4% 25.3%

3. If oil does hit $200 a barrel, Rubin claims it will be followed by a crash back to $40 to $50 a barrel primarily because it will cause another enormous recession. True, that makes sense Possible, but unlikely Not a chance Who knows? That’s nothing more than a guess

20.5% 38.6% 7.2% 33.7%

4. If oil gets to the $200 mark and above, Rubin predicts this will totally shake up agriculture. Cheap food from overseas is only cheap if transportation costs remain low. What will happen? Local agriculture will get a huge boost because prices will prevent imports from long distances 32.5%

Much more natural farming will be the result because industrial farming inputs like oil-based fertilizers won’t be affordable any more 6.0% Not much will happen, people are dependent on our current food system and will pay whatever they have to for selection and fresh food 37.4% Mega-food corporations and grocery stores will keep the long-distance flow going because their survival depends on it 24.1% 5. How would $200 oil affect the housing market here? The effect would be profound, causing strong slowdowns and changes in Okanagan building 19.5% We will be forced to move into smaller homes, closer to the centre (higher density urban dwelling) and it will negatively impact home prices farther out 13.4% The Okanagan is such a desirable place to live

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that it will continue to attract high wage earners who are resistant to such price shocks 24.4% Minor effects – people still want single homes, the population will keep increasing and that means commuting 42.7% 6. Are auto manufacturers planning well enough for these potential price shocks? Not at all, at least here in North America because products are still aimed at big power autos 26.8% They’ll take another hit when the next price shock comes along, but they’ll pull through 19.5% After the last shock they have their eyes open and they’re starting to prepare 39.0% They are now on top of it

4.9%

New technologies coming down the pike will render future oil shocks fairly minor for auto manufacturers 9.8% 7. Manufacturing will have to move closer to markets because of transportation costs. Is this true? Overseas labour costs are so low that it will make up for transportation costs even if they double 28.8% Perhaps to some extent, but transporting raw materials to one central location is still so much

more costly than transporting finished goods that centralized manufacturing will remain the norm 58.8%

innovation and business people are at their best. They will overcome all challenges 32.9%

This will cause a renaissance in manufacturing in developed countries 12.5%

Electronic information transfer and high-speed data connections will allow many businesses to connect remotely, but we’ll have fewer fact-toface meetings 51.2%

8. Tourism is dependent on travel. Here in the Okanagan expensive oil:

The big box retailing era will be over, people will want their goods close to home or office 2.4%

Will have little impact overall. People will get used to high transportation costs 12.5%

People will work from home and the central workplace will be a thing of the past 8.5%

Perhaps we’ll lose visitors from afar, but more locals will holiday in their own backyard and make up for it 51.2%

Life will become much simpler because we’ll have to rely on locally produced goods 4.9%

Auto transportation and air travel will decline, but we’ll shift to other more cost effective transportation models like commuter trains and buses 10.0%

10. Alternatives will come into play as oil prices go upward so that most of Rubin’s predictions aren’t relevant.

We will turn inward, becoming much more community focused. The outside world will matter less 5.0% The effects will be profound. Tourism and our local economy will be unrecognizable because of these changes within one to two decades 21.2% 9. Rubin suggests work will change drastically. It is when things get very difficult that

Absolutely, technology and research will prevent most of these changes 9.8% New technology will have enough of an impact that the worst effects will be reduced or mitigated 25.6% Overall, effects will be moderate

30.5%

Our lifestyle will undergo radical changes because of this, we’ll be forced to make huge adjustments 15.9% I have no idea, there is too much conflicting information 18.3%

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Fall Conference offers Labour and Competitive Insights By Devon Brooks In the past four years Community Futures Vernon has put on a ‘Shifting Directions’ labour conference every year but one. Each time the 200 seat venue has sold out and Community Futures manager Norm Metcalf expects this year’s conference to be no different. The success is largely because of the effort to make sure that the conference is relevant to what’s happening in our markets. The 2008

Shifting Directions, at the tail end of the boom and an extremely tight labour market, was about attracting workers and retaining the staff already in place. Every employer is aware of how that has changed, even if certain top end skill sets are in tight demand. The best example is the youth market, about which Metcalf says, “Youth employment is the canary in the coal mine.”

The canary is choking this year, and that’s something employers need to be aware of. Not just because it will be easier to find staff to fill positions that went begging a couple of years ago. Getting good workers and keeping them will depend on how the economy fares going forward. International debt crises, strong real estate markets (at least locally), protectionism, Canada’s stronger economy, investor worries, HST fights and even giant oil spills all add to an air of uncertainty. This year it’s more complicated to pick a dominant theme. Asks Metcalf, “What skills are we going to be looking for coming out of the recession, going into an upswing?” Because Community Futures is immersed in dayto-day business concerns staff are intimately acquainted with the strengths and weaknesses of the business sector here. An important fact about businesses here is the small size of most firms. Metcalf says, “We have many employers of 8 to 25 workers who don’t really have HR skills. They do it ad hoc.” Metcalf is proud that developing a basic HR toolkit during and after the conference is something Community Futures is expert at. Their expertise is well recognized by the B.C. government, which has pumped in considerable funding to get the conference off the ground. Metcalf says, “The B.C. government has helped us with this conference. It’s very important.” The funding allows him to make sure they have relevant speakers. Six speakers are coming and the theme of their talks are already listed on the Shifting Directions website (www. shiftingdirections.ca). They include: 1) Sean Aiken on his experiment of doing one job a week for 52 weeks, which is documented in his book, The One Week Job Project; 2) Linda Nazareth on big changes to the North American market and the advent of the “leisure economy”; 3) Dr. Tom Keenan on essential skill development; 4) Angela Reid on green jobs and sustainable industries; 5) Barbara White on how to understand the opportunities and meaning of the social media boom to business, and; 6) Ian Cook on demographic changes and how those changes will force businesses to adapt. The conference runs over two days on September 27/28 at the Best Western Vernon Lodge. Fees for the two day event run from $209 plus taxes for early registrations to $249 for those who book in the last three weeks.

26 Okanagan Business Examiner / June 2010

A Question of Balance in Inventory Success is all about balance: balancing the professional with the personal, the family with the work, the fun with the not-so-fun. In any company, there are unique challenges to maintaining balance. In the case of enterprises that produce and/or sell product, a telltale sign of effective management is the owner’s ability to match product-on-hand with customer demand. There is a critical tipping point between costs associated with carrying inventory, and the revenue from sales. Ideally, the two are so closely aligned that costs are immediately offset by revenue.

Inventory Turnover

get too far out of control before you take action.

Take a methodical approach to assessing inventory turnover. It is best to look at how fast your product is moving, either by individual item if you only sell a few, or by category if you sell many. The time frame to measure can be as short as a week or as long as a year. Generally speaking, a month is a good time frame to consider – long enough to show emerging trends, and short enough that your stock can’t

The formula for measuring inventory turnover is: Cost of Goods Sold (that is, your cost of product sold for the period) [divided by] Average Inventory for the period Average inventory is measured by adding together the value of your beginning inventory for the period and your ending inventory for the period and dividing it by 2.

Continued on page 28

Good market research Good market research is key, and some would argue a gut-feel for your industry is also important. If you open your doors with an understanding of what your customers want, how often they are going to want it and what they are willing to pay for it, you’re ahead of the game. Use your sales records and a history of customer behavior to provide a solid foundation for buying or production decisions. Take the case of Cathy Burrell, who owned and operated Cavern Clothing, a women’s clothing store in White Rock, for almost 20 years. “I had a buying plan at the beginning of each season,” says Cathy, “based on my sales for the previous season. I worked one year in advance. I would plan to buy twice a year, looking at my sales from the year before and deciding from there how much I wanted to invest per clothing category.” “I had a computer system that broke down the merchandise I carried into seven different categories. I would recommend using a computer system to anyone in retail. Get weekly and monthly reports. As long as your system can give you information on what you’ve purchased and your sales, it’s a massively important investment. When you’re in retail clothing especially, cold hard numbers are what you have to rely on.” “In my business, I tracked how much I sold in each stock category and I decided, for each one, how much I wanted to sell for the next season. It’s a numbers game when it comes to how much sales to anticipate. Sell too much compared to what you purchased and you are under-stocked; not enough, overstocked. Sometimes, you really have to commit to a product or take the chance that you’re going to be stuck with stock. Of course, if you have too much stock you can always reduce it a bit and put it on sale, but if you don’t have it, you’re in trouble.”

TWO SCHOOLS OF THOUGHT. NOW IN ALLIANCE WITH

FAC U LT Y O F M A N AG E ME N T OK A N AG A N CA M P U S

Two business faculties. Two remarkable locations. One shared commitment to excellence. The Faculty of Management at UBC’s Okanagan campus is pleased to announce its alliance with the Sauder School of Business in Vancouver, a collaboration that will generate new opportunities for student learning, knowledge development, and business innovation in BC and beyond.

FACU LTY OF M ANAGE ME NT OKANAGAN CAM PU S

www.ubc.ca/okanagan/management

Okanagan Business Examiner / June 2010 27

Movers&Shakers Continued from page 23

Dhane Merriman, “While we already sell all over the world, our international promotional efforts have been through word-of-mouth primarily. Our intention is to be more deliberate in our marketing initiatives.” Armstrong Honours Last WWII Tail Gunner

The last WWII veteran from the Armstrong area, but quite probably the entire province, has passed away. Vern Flatekval served on 36 missions as a tail gunner when the average tail gunner survived only seven missions. Flatekval will be honoured with a special Oh Canada concert at Memorial Park in Armstrong on June 29. Osoyoos lands new Economic Development Officer

Barry Romanko, the Chief Administrative Officer for the City of Osoyoos, says Jim Newman is the new Manager of Community Development. The position will cover off economic development, a job that used to be handled under contract at Destination Osoyoos until late last year when Osoyoos decided to bring it back in house. Newman comes from a similar position working for the County of Sturgeon, which has a population of 19,000 people in five towns just

north of Edmonton. He takes up his new duties at the beginning of August. Baron Insurance brings in new partner

Baron Insurance has taken on a new partner, Arne Chaddock. Chaddock lives in Salmon Arm with his family, but will work full time out of Baron’s Enderby offices.

UBCO Doubles its Footprint

The Board of Governor’s for the University of British Columbia

Question of Balance Continued from page 27

Generally, you would expect bigger ticket items to turn over more slowly than lower-priced items. It’s sad, in a way, because high-priced products are often the ones that tie up your money as they sit in inventory. Your job is to decide how quickly items should turn, whether they pull their weight relative to the cost of keeping them in stock and when it might be time to fire-sale them out the door. The last thing you want is to be caught holding old, out-of-date or even expired product that nobody wants. High product turnover is usually a good thing. It shows that stock is moving in and out of your business 28 Okanagan Business Examiner / June 2010

as it should. If the rate is too high, however, or you’re running out of stock, it might be time to increase your inventory levels in order to meet customers demand. Even loyal customers will become disillusioned with you if the products they rely on you for aren’t there. Again, it’s all a question of balance. Women’s Enterprise Centre is the go-to place for BC women business owners for business loans, skills training, business advisory services, resources, publications and referrals. Call us at 1.800.643.7014 or email inquiry@womensenterprise.ca from anywhere in B.C.

approved the $8.78 million purchase of a 256 acre (104 ha) parcel of farmland in Glenmore from the City of Kelowna. In size the expansion matches almost exactly UBCO’s current 260 (105 ha) land parcel. Doug Owram, Principal of the Okanagan campus and Deputy Vice Chancellor says, “We have nearly doubled our numbers in many key areas [in the past five years since opening], including student population, faculty and staff, and our facilities will soon have three times the floor space we had in 2005. And today, we are effectively doubling our land area,

creating a resource that will help ensure our long-term future.” Exact uses for the new land will be developed over time, but the initial agreement calls for collaboration between the university and Kelowna on future roads, a public trail and protection for the water bodies on the new endowment land as natural areas. The university reports that since it was established five years ago $400 million has gone into academic and student residential facilities on the current campus lands.

Hiring Olympic Achievers Continued from page 14

job) think about giving them a month or two before starting with you. In the meantime, keep up the conversation, invite them to company events, etc., but don’t let them on your soil until they have come down from their high. If you desperately need them to start (and they are willing) then consider being flexible with schedules and days off to help avoid ‘the bends,’ which applies in work burnout as well as scuba diving. Experienced event staff often move from event to event, project to project, because they love the energy and vision and the

rollercoaster ride to the sense of accomplishment, but also recognize their need to take time off to chill in between gigs to replenish, restore, and reconnect with the world they left behind. I recommend employees who worked for VANOC for their ethics, passion, energy, creativity, resourcefulness, sense of team, and excellent performance standards, because those values are easier bought than taught, but if you do score an ex-Olympic staffer, be prepared to rise to the occasion. By Shawnee Love, Love HR If you want to read more HR for the real world, visit www.lovehr.ca/blog/

Greece: the Slippery Slope or a Holiday Paradise Governments and central banks around the world have spent much of the past two years saving their financial systems and industries from collapse. Now they must save themselves, and that is why headlines this year have featured Grecian riots instead of resorts. Greece’s problem is that, like many households, it spends more than it earns. Like many North American households, the overspending has been financed by borrowing. The matter came to a head on May 19 when €8.5 billion Euros ($Cdn 11.3 billion) worth of government debt came due. Lenders were reluctant to refinance over concerns of ever being repaid. The International Monetary Fund (IMF) and European Union (EU) arranged a 110 billion Euro bailout to refinance debt coming due over the next few years and calm markets. Greece was forced to enact an austerity program to slash government spending and bring their deficits under control, and angry citizens took to the streets. What does this mean to investors? First of all, don’t panic! Defaulting on its debt would cause short term stress, but with an economy about 25% bigger than Quebec’s, Greece is not big enough to seriously damage the world economy. Drastically reduced government spending will likely slow Greece’s economy into a multiyear recession. Lower tax revenues and higher debt costs from being a bigger credit risk will make it harder to rebalance the budget and pay down debt. The government will beef up its tax collection capability, as current estimates suggest the budget

would have a healthy surplus if it simply collected the taxes owed by its citizens and businesses. High anxiety could also result from global focus returning to the question of ‘Who’s next?” There are other countries with high debt levels that are big enough to make a difference. The answer to how much debt is too much is debt that can’t be repaid. Debt levels can rise to a point where interest costs consume too much of the budget, or a large payment comes due as in Greece’s case. There are many different measures of debt levels, but central government debt as a percentage of GDP (the size of the economy) is one of the best. It relates debt level to annual income and ability to repay. According to OECD statistics, Greece’s debt / GDP was about 126% in 2009 and getting worse. By comparison, the U.S. stands at 53% and rising fast. Canada appears almost frugal at 35%. At the scary end of the scale, Italy’s debt / GDP was 107% in 2009, and Japan’s was 178% in 2008. Note that Italy ranks as the eleventh largest economy in the world (if the EU is counted as a single economy) and Japan is fourth, according to the IMF Economic Outlook database.

% of GDP

200 150 100

We may also want to consider California, with an economy slightly larger than Italy’s. California has a budget system constrained by voter initiatives, which tends to look at state budget items on a line by line basis. Voters have mandated spending, but capped taxation. It isn’t working and something has to change. The state can go broke, radically overhaul its laws and the results of its voter initiatives, or find radical new sources of income. They could start spending less on incarceration (about 10% of their budget) than education. California has options, but none are easy. Most of these troubled economies are likely to muddle through. They never do as well as they should, but never as badly as they could either. The expanding global economy will likely allow their tax revenues to increase faster than gloomy budget

projections account for. Spending cuts will help get budgets back in order, but also keep their own economic growth below potential. Most countries in the world have manageable debt structures and the world as a whole should continue to prosper. We should look at Greece more as an opportunity rather than the beginning of the end. Watch for interesting last minute deals on hotels, tours and airline seats under-booked after headlines full of riots and volcanic ash. 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 dominikd@fraserfinancial.com with any questions, comments or issues you would like to see covered in this column. The opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.

WouldWould you you Would you make ratherrather make rather make excuses or or excusesexcuses or sales? sales? sales? Would you

Italy will have challenges resolving its debt problems. Its hands are tied in many ways by being part of the EU. They have no control over their interest rates, so they can’t lower them to zero as the U.S. has done. Low rates help boost the economy and tax revenues and cut interest costs. Italy can’t print money

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250

either, like the U.S. can to pay its bills over the short term, but it has announced spending cuts, along with Spain and Portugal.

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source: IMF

Okanagan Business Examiner / June 2010 29

T c t y b co pr Stil La it DV pr

ThisDemocracy Okanagan COnTInUED FROM PagE 13

however, far from homogenous in their approach or their development plans.

Time for satirical Christianity

we invite members of all other I’m starting a new religion. It religions to likewise start poking takes Jesus Christ as the Lord and fun around the global non-secular saviour along with all the usual table. boilerplate stuff about there being VISIBILITY no INCREASED other God and no Word other FOR YOUR BUSINESS After all, as expressed in Job 8: 21, than that contained in the Holy no matter what befalls us while Bible. That’s the serious part. Now we’re here on earth… comes the fun part, which, in some ways, might prove to be the really He (that’d be God) will yet fill your serious part. mouth with laughter and your lips with shouts of joy What sets this new version of

NOW!!

Christianity apart is aWEST belief in the However, we do NOT under MEDIA www.limemediawest.ca power of humour in “enlightening” E: info@limemediawest.ca any circumstances TF: poke fun at 1.877.440.5463 109-2955 Acland Road Kelowna, BC V1X 7X2 faith. Followers promote the robust Jews…unless, of course, they exchange of satirical, sarcastic and are Jews who do not believe in at times even sardonic commentary the preservation and defence of on all religions, including our Israel, the Jewish homeland. Only own, in a spirit of good will; and culturally suicidal Jews deserve to

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30 Okanagan Business Examiner / June 2010

Penticton has only recently formed and started to build its economic base through the Penticton Indian Band Development Corporation, following in the footsteps of the Osoyoos Indian Band Development Corporation. Osoyoos is already well established with ownership or interest in 17 different companies including Spirit Ridge Vineyard Resort, Nk’Mip Winery, Canyon Desert Golf Course, a convenience store, a construction company, an RV park, a daycare, Mt. Baldy Ski Corp., Senkulmen Business and Oliver vegans, Readi-mix. followers of Gaia, hippies, have jokes made at theirpark expense. locavores and members of City otherof What each band started with is enormously valuable land. The Likewise, in the interests of sundry “green-red” religions, and Penticton is squeezed between mountains and lakes leaving the only fairness, we do not make fun of we NEVER make fun oftothem, easily developed flat land on the Penticton Indian Reserve the west. Muslims, unless of course they unless they are sowhere naïve highway as to Osoyoos’ hugeagainst territorynonhas been developed in places support violence fail to appreciate that they are access or proximity to the Town of Osoyoos makes the most economic Muslims, women, gays or Jews, followers of religions of their own or ifsense. they endorse the takeover making. of non-Muslim territories and the The Westbank First Nations has taken a much more individualistic imposition of The Sharia law.land just north Bureaucrats approach. band’s of West Kelowna the sight too arehas offbeen limits, of intensive residential, business and commercial developments. unless they actually believe they’re We never make jokes about First useful to society at large and worth Nations people, formerly known While the Band itself is prospering from an enormously increased tax what we pay them. Ha! Now that’s as base Aboriginals and Indians, unless from no less than five large commercial developments and 8,000 a great right there,inisn’t it?key they happen residents, to have strayed so non-band the entrepreneurial spiritjoke is embodied a few far individuals from the teachings of their who have gathered the land packages. In addition Lastly, we do not make funtoofleasing ancestors that they like rely Noll not on land, individuals Derriksan have up several enormously fellowbuilt Christians, unless they themselves on government successfulbutbusinesses on his own. have developed their own liberal for sustenance and for the interpretations of company, the teachings N.C. Derriksan & Son Enterprises runs a development owns maintenance of their communities of Christ and have company, strayed soCA far JSDS General Contractors, a heavy equipment leasing and families, or if they support from Histravel teachings thatand they are Promotions, Skyline Billboards, an executive service a First violence against those with whom fact no longer trulyalone Christian, Nation jewelry company. Derriksan isinprominent, but not in his their ancestors somehow managed and unless they believe they are successes. to live peacefully since Europeans too high and mighty to have a joke first set foot on North American BaNDs & CompaNies made about them. soiliNDiaN centuries ago. Okanagan Nation Alliance - www.syilx.org In short, any group that believes it And we never poke fun at Catholics deserves special treatment we will in Quebec, unless believe Westbank First they Nations - www.wfn.ca Quebec deserves handouts from the likely see fit to ridicule. And, lest N.C. Derriksan & Son Enterprises - www.ncderriksan.com there be any misunderstanding, we rest of Canada and that the French stress that we love all these people Penticton Indian - www.pib.ca language should be Band promoted at as indeed we love all our fellow theOsoyoos expenseIndian of English. do we Band Nor - www.oib.ca brothers and sisters. It is for that tease Buddhists, unless of course Osoyoos www.oibdc.com reason (and- the reason is love) that they believeIndian it’s allBand right Development to commit Corporation we reserve the right to make fun adultery (that’d be you Tiger Okanagan Indian Band of them as indeed we hope they Woods). We never make jokes at will see fit to do with us, with the the expense of gay people, unless Noll DerriksaN's estate square DevelopmeNt proviso that images of the saviour they are of the mistaken belief or lord of any religion is completely that being gay gives one license to off limits. flaunt one’s sexuality and that the rest of us should foot the bill for Lastly, we also believe in the three MEDIA WEST annual “Gay Pride” parades. Judeo-Christian pillars of faith, Atheists are also off limits, unless they believe their lack of belief in a higher power constitutes a religion and hence requires equal protection under the law. Then there are socialists, environmentalists, anarchists, Marxists, Maoists, Stalinists, Leninists, Trotskyites, globalwarming activists, vegetarians,

hope and charity, and reserve the right to fire back at anyone who actually believes in the biggest joke of all, that government can ever replace these pillars. Amen.

Mischa Popoff is a freelance political writer with a degree in history. He can be heard on Kelowna’s AM 1150 with host Phil Johnson on Friday mornings between 9 and 10.

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