If all you ever thought about Canada is that it’s the land of ice, snow, oil, wood and hockey it’s time to think again about doing business in Canada. For example, number of millionaire households in Canada is set to surge 38% and total wealth will more than double, according to a new report.
A study carried out by the Deloitte Centre for Financial Services of 25 countries found that the number of millionaire households in Canada will jump from 1.74 million to 2.4 million in the next nine years according to a report on Global Wealth. This study also found that Canada’s total wealth will rise from $3.35 billion to $6.77 billion. This is great news for a population of some 35 million but still a drop in the bucket in comparison to the U.S.
For example, the total wealth projected in the millionaire households world-wide will grow from $92 Trillion in 2011 to $202 Trillion in 2020. For my American friends who think that their economy is still on the skids, they should be a whole lot more optimistic now because the study also found that the U.S. is likely to remain the world leader in terms of total wealth followed by Japan and Italy.
For example any American worried about the U.S. economy should be investing heavily in real estate, stocks and or bonds since the same study predicts that 43% of the world’s millionaire households are predicted to be in the United States and also the number of millionaire households in the United States is projected to increase from an estimated 10.5 million in 2011 to 20.6 million in 2020.
While this news is good for Canada right now, it’s projected that even with this impressive growth Canada is likely to slip in wealth status to 8th world-wide since China is expected to make huge gains in the next number of years and is currently in 12th place.
The study also showed that wealthy Canadians have the biggest portion of their money in cash and other categories, which accounts for 28% of their total holdings. Canadian millionaires also tend to hold equal shares in real estate and domestic stocks at about 21% and over 11% in foreign stocks.
Meanwhile with the bloom off American real estate in the short-term (except for those Canadians investing in warm climate states like Florida and California) the ownership of property still accounts for 51% of millionaire household assets in Italy, compared with 45% in Spain and 35% in Hong Kong.
This study also shows that Canada is still a safe haven to do business, start a new lifestyle or just continue doing what we have been doing since the economy is maintaining a steady growth and there is also strong projected future growth.
This is also a great message for my American friends who can now start to change their attitude slightly and view their economy as one of the best in the world and see that it’s time for America to start to rebuild its business base, its cities, its real estate and its stock market. Even with the current downturns the U.S. it is still the leader in the number of millionaires world-wide.
So even though you think that Canada is that northern white spot on the map north of the 49th parallel remember there are millions of dollars up here waiting for investors and new products and Canada represents a great market for any type of business.
Kensel Tracy is the Marketing Coach, Senior Partner with the Corporate Coachworkz Inc. and President of Business Over Breakfast Clubs currently opening in every city and town in North America.
Monday, May 16, 2011
Friday, April 15, 2011
Even with Rising Loonie, Canucks pay more than U.S. Counterparts
As luck would have it for the average Canadian consumer travelling to the United States, it still makes a lot of sense to spend more dollars state-side than in Canada. Having recently returned from a holiday in California I was quite happy to spend as many dollars as I could in the old U.S. of A since like me, many Canadian consumers are still paying more for goods and services at home even though the Canadian Dollar is now worth $1.04 U.S.
The Loonie ( as Canadians affectionately call the dollar) has now risen 30% from its levels just two years ago fuelled by investors seeking the stability of Canada’s financial system and booming demand for the nation’s commodities.
BMO Chief Economist Doug Porter says that it’s because of more moderate inflation performance vs. other countries overwhelmed by the surge in currency. As a result says Porter “the cost of a basket of goods, adjusted for today’s exchange rate, has bolted higher in Canada relative to the U.S”.
Having lived in Toronto growing up, it was not uncommon in the 60’s and 70’s to make the trip to Buffalo N.Y to shop and to pick up Lee Jeans, and Penny loafers ( once all proudly carrying the Made in USA sticker) and bring them back to Canada every chance you got. The U.S. dollar could be purchased for as little as $.70 cents Canadian and it made perfect sense to purchase goods at lower prices in the U.S. with higher Canadian dollars.
Over the years that has all changed. The Loonie fell behind the U.S. dollar and Free Trade had so much impact in that it became attractive to start to sell your goods in the U.S. at margins 25-40 percent higher due to the fact that the Canadian dollar was trading in the $.60-$.70 cent range for one U.S. dollar. The U.S. economy was booming and everything from lumber to pork bellies was in demand.
This helped Canada in the export market because goods bought with U.S. dollars gave manufacturers a comfortable margin just with the exchange rate. Now however, some companies have had to learn how to adapt to being more competitive in sales, quality, delivery and performance based on the rising Loonie.
Now another thing is happening with the a the rising Canadian dollar, consumers are still paying more for comparable products in Canada than our friends south of the boarder. For example, check out the price of Books and Food. The U.S. price is still lower for a book in comparison to Canada even if the book is printed in Canada and there are no shipping costs.
Running shoes in the U.S. can be had for a low buy one pair for $69.00 get the second pair at ½ price. In Canada the same shoes cost $147.99 Canadian for one pair. Golf balls have an 11% price difference in Canada than in the U.S. Gap Cargo shorts are 15% more expensive and an IPod Touch costs $249.00 in Canada and $200.89 in the U.S. The cost of gas and alcohol is also cheaper in the U.S. due to lower government taxes. For example a gallon of gas in Canada costs $5.62 cents (at $1.25 a liter) and a six pack of beer is around $10.99 plus deposit. I recently bought a case of 12 Becks beer in California for $11.99 and a dozen Budweiser’s for $6.99. The price of gasoline was less than $4.00 a gallon.
The BMO says that the lofty Loonie is here to stay so that it will appear that many more Canadians will be taking their vacations State-side this year and Canada will see less U.S. tourism based on the higher price of goods and services and the need to have a passport to cross the border.
This does not favour good long-term growth for tourism related industries or those exporters and those who ship the majority of their production to the U.S.
It should however give Canadian politicians some food for thought about reducing corporate taxes, reducing the taxes on gas and decreasing consumption taxes such as the HST and GST to make Canada more competitive with our friends to the south.
Kensel Tracy is the Marketing Coach and is Senior Partner with the Corporate Coachworkz in Chelsea, Quebec.
The Loonie ( as Canadians affectionately call the dollar) has now risen 30% from its levels just two years ago fuelled by investors seeking the stability of Canada’s financial system and booming demand for the nation’s commodities.
BMO Chief Economist Doug Porter says that it’s because of more moderate inflation performance vs. other countries overwhelmed by the surge in currency. As a result says Porter “the cost of a basket of goods, adjusted for today’s exchange rate, has bolted higher in Canada relative to the U.S”.
Having lived in Toronto growing up, it was not uncommon in the 60’s and 70’s to make the trip to Buffalo N.Y to shop and to pick up Lee Jeans, and Penny loafers ( once all proudly carrying the Made in USA sticker) and bring them back to Canada every chance you got. The U.S. dollar could be purchased for as little as $.70 cents Canadian and it made perfect sense to purchase goods at lower prices in the U.S. with higher Canadian dollars.
Over the years that has all changed. The Loonie fell behind the U.S. dollar and Free Trade had so much impact in that it became attractive to start to sell your goods in the U.S. at margins 25-40 percent higher due to the fact that the Canadian dollar was trading in the $.60-$.70 cent range for one U.S. dollar. The U.S. economy was booming and everything from lumber to pork bellies was in demand.
This helped Canada in the export market because goods bought with U.S. dollars gave manufacturers a comfortable margin just with the exchange rate. Now however, some companies have had to learn how to adapt to being more competitive in sales, quality, delivery and performance based on the rising Loonie.
Now another thing is happening with the a the rising Canadian dollar, consumers are still paying more for comparable products in Canada than our friends south of the boarder. For example, check out the price of Books and Food. The U.S. price is still lower for a book in comparison to Canada even if the book is printed in Canada and there are no shipping costs.
Running shoes in the U.S. can be had for a low buy one pair for $69.00 get the second pair at ½ price. In Canada the same shoes cost $147.99 Canadian for one pair. Golf balls have an 11% price difference in Canada than in the U.S. Gap Cargo shorts are 15% more expensive and an IPod Touch costs $249.00 in Canada and $200.89 in the U.S. The cost of gas and alcohol is also cheaper in the U.S. due to lower government taxes. For example a gallon of gas in Canada costs $5.62 cents (at $1.25 a liter) and a six pack of beer is around $10.99 plus deposit. I recently bought a case of 12 Becks beer in California for $11.99 and a dozen Budweiser’s for $6.99. The price of gasoline was less than $4.00 a gallon.
The BMO says that the lofty Loonie is here to stay so that it will appear that many more Canadians will be taking their vacations State-side this year and Canada will see less U.S. tourism based on the higher price of goods and services and the need to have a passport to cross the border.
This does not favour good long-term growth for tourism related industries or those exporters and those who ship the majority of their production to the U.S.
It should however give Canadian politicians some food for thought about reducing corporate taxes, reducing the taxes on gas and decreasing consumption taxes such as the HST and GST to make Canada more competitive with our friends to the south.
Kensel Tracy is the Marketing Coach and is Senior Partner with the Corporate Coachworkz in Chelsea, Quebec.
Monday, March 21, 2011
Canadian Companies Face Different Challenges than U.S. Counterparts.
I came across an interesting discussion this week online by Paul Ricketts where he put a question out on his blog about the differences that Canadian companies face in comparison to those starting up in United States.
Many of my American business friends and I discuss this on a regular basis especially now that the world is getting smaller every day and Canada’s small business environment is growing especially now that we have a solid economy, great standard of living and a highly educated workforce. Yes, in many parts of the country that goes with 6 months of winter, but Canada is still a great place to start a business.
However in spite of all the good things about doing business in Canada, Ricketts brief survey addressed some of the issues affecting Canadian start-ups. For one, Canada has a small domestic market which is further fragmented by inter-provincial barriers and regulations. This is especially true for tangible goods. Many products are regulated provincially forcing many Canadian companies to seek markets offshore or in the U.S. quicker than developing the Canadian market. For many start-ups this means that many companies are doing business in foreign markets quicker than their U.S. counterparts and this leads to increased costs and marketing issues as companies are forced to tackle markets outside of their home country.
Canada also has a much smaller VC market and angel capital pools are smaller. This means that investors are required to be less patient in there need for returns which forces a lot of smaller companies to grow much more quickly to satisfy investors forcing in some cases quicker expansion and higher risk taking. This is not all bad, however but if you have a product that requires good long term patient investment it can be difficult to find the right investors in Canada.
Because of the size of the market only 30 million people, there is a lack of diversity of industry clusters and sub-clusters and fewer companion companies within those clusters, so a lot of start-ups are forced to go alone or go a long way from home to find companion products and companies that can use their products. Canada also suffers from a lack of large major home grown companies and has limited national and global players with a major presence to act as catalysts for new ideas and to grow management talent. This does not mean there isn’t any real talent there is, just not enough.
Ricketts also thinks that Canadian business owners have a bad case of “ sell-out-itis “ which forces Canadian companies too often to take the big cheque sell out too early or plan a business with short-term or limited thinking where the entire business strategy is predicated on finding an exit.
With that being said, a stable economy, solid work force and a growing market Canada is still a great place to consider starting a business. There are a large number of government business incentives and safe environments. The only thing that we really need is a better climate in general, because sometimes you just don’t need 6 months of winter.
Kensel Tracy, The Marketing Coach is a Senior Partner with the Corporate Coachworkz Inc. located in Ottawa and Chelsea, Quebec and is also the President of Business over Breakfast Clubs of North America now opening in every City. If you have a story that you think on doing business in Canada, he can be reached at kenselt@sympatico.ca.
Many of my American business friends and I discuss this on a regular basis especially now that the world is getting smaller every day and Canada’s small business environment is growing especially now that we have a solid economy, great standard of living and a highly educated workforce. Yes, in many parts of the country that goes with 6 months of winter, but Canada is still a great place to start a business.
However in spite of all the good things about doing business in Canada, Ricketts brief survey addressed some of the issues affecting Canadian start-ups. For one, Canada has a small domestic market which is further fragmented by inter-provincial barriers and regulations. This is especially true for tangible goods. Many products are regulated provincially forcing many Canadian companies to seek markets offshore or in the U.S. quicker than developing the Canadian market. For many start-ups this means that many companies are doing business in foreign markets quicker than their U.S. counterparts and this leads to increased costs and marketing issues as companies are forced to tackle markets outside of their home country.
Canada also has a much smaller VC market and angel capital pools are smaller. This means that investors are required to be less patient in there need for returns which forces a lot of smaller companies to grow much more quickly to satisfy investors forcing in some cases quicker expansion and higher risk taking. This is not all bad, however but if you have a product that requires good long term patient investment it can be difficult to find the right investors in Canada.
Because of the size of the market only 30 million people, there is a lack of diversity of industry clusters and sub-clusters and fewer companion companies within those clusters, so a lot of start-ups are forced to go alone or go a long way from home to find companion products and companies that can use their products. Canada also suffers from a lack of large major home grown companies and has limited national and global players with a major presence to act as catalysts for new ideas and to grow management talent. This does not mean there isn’t any real talent there is, just not enough.
Ricketts also thinks that Canadian business owners have a bad case of “ sell-out-itis “ which forces Canadian companies too often to take the big cheque sell out too early or plan a business with short-term or limited thinking where the entire business strategy is predicated on finding an exit.
With that being said, a stable economy, solid work force and a growing market Canada is still a great place to consider starting a business. There are a large number of government business incentives and safe environments. The only thing that we really need is a better climate in general, because sometimes you just don’t need 6 months of winter.
Kensel Tracy, The Marketing Coach is a Senior Partner with the Corporate Coachworkz Inc. located in Ottawa and Chelsea, Quebec and is also the President of Business over Breakfast Clubs of North America now opening in every City. If you have a story that you think on doing business in Canada, he can be reached at kenselt@sympatico.ca.
Wednesday, February 23, 2011
Canada's Cities Deemed Most Livable
As a Canadian and a business owner it was great to find out this week that based on research provided the by the Economist Intelligence Unit that three of the top-ten most livable cities in the world were in Canada and that Vancouver ranked as the number one most livable city in the world.
The Economist Intelligence Unit is the world's leading resource for economic and business research, forecasting and analysis. Like The Economist, it is an independent of all governing bodies and corporations, leaving it free to deliver accurate and impartial business intelligence. The report provided livability rankings for 140 cities. Each city was assigned a score for over 30 qualitative and quantitative factors across five broad categories which included, stability, health care, culture and environment, education and infrastructure.
Australia had four cities in the top ten and Vienna, Helsinki and Auckland New Zealand rounded out the top-ten group. A big disappointment for my American friends was that the highest ranked city was Pittsburgh at 29, and that Los Angles ranked at 44 and New York ranked at 56.
Why are these rankings so important? Well as a business owner, a highly livable city allows you the opportunity to define the best places to setup and run a business and it is important to know what cities have the greatest potential.
For Canada to have three cities, Vancouver ranked as number one and Toronto and Calgary as four and five respectively it’s quite an accomplishment. It shows that low interest rates, coupled with good government, limited risk, vision, stability, infrastructure and commitment are all important in growing an economy and a city. Canada has managed to build the infrastructure in order to make its major cities as appealing places to live and as such, great places to start and grow a business.
Canada has also weathered the economic downturn quite nicely.Our business growth is strong and emerging and our banking system is also strong. Although we take a lot of flak from our neighbors to the south and sometimes throughout the world in regards to Canada’s commitment to national health care and high taxes which are in some cases perceived as detrimental, Canada continues to lead all of the G8 countries in economic growth. Combine that with high livability rankings and you have a country that is well positioned in regards to providing opportunities for business for the future.
This study also shows that if quality of life can be sustained then businesses can also grow and prosper in these environments. An educated work force and a highly livable city are usually tied into a strong economy and significant business growth.
As a Canadian I am proud of the fact that Canada is the land of opportunity. Yes it may have cold weather, 15% of the population that speaks French, higher personal and business taxes, the HST (sales taxes) and higher municipal taxes, but now Canada should have no inferiority complex on both the world stage and in the business world.
Lowering our national debt and continuing to provide lower corporate taxes, rebuilding our education system and ensuring a high standard of living will ensure that Canada is a good place to invest and build a business. These are the things that hopefully we can teach the world. Combine that with mutual respect for our fellow humans throughout the planet and you have a winning formula for business success.
For more information on the study and to register free for additional information checkout http://www.eiu.com/ at the Economist Intelligence Unit.
Kensel Tracy is The Marketing Coach and Senior Partner with The Corporate Coachworkz Inc. and a Senior Consultant with the Centre of Excellence for Public Sector Marketing in Ottawa. He is also the President of Business Over Breakfast Clubs now opening in every city in North America. If you have something of interest he can be contacted at kenselt@sympatico.ca
Thursday, January 27, 2011
Aboriginal People in Canada Getting into Clean Energy Business
As part of a an ongoing profile of unique business opportunities in Canada I came across this story.
In this age where virtually every country is looking for cleaner sources of energy Aboriginal organizations are getting involved in the clean energy business in Canada. Canada like other countries in the world are discovering that run-of-river hydro projects can offer more than clean energy and they also have the potential to generate significant, long-term economic benefits for the country’s Aboriginal people.
As the push to develop more clean energy has increased, independent power producers are approaching individual First Nations in Canada on a regular basis with proposals for small hydro development. Under Canadian law, most Aboriginal peoples have certain rights with regard to resource development on their traditional territories.
Aboriginal corporations that provide business financing and support services to First Nations in British Columbia and the Tribal Resource Investment Corporation (TRICORP) and the Tale'awtxw Aboriginal Capital Corporation are taking a major stake in various projects throughout Canada. They also created the First Nation
Regeneration Fund specifically to provide financing to enable First Nations to purchase equity positions in power projects.
“Run-of-river hydro power generation is one area where First Nations clearly have a competitive advantage,” says Peter Lantin, TRICORP’s Chief Operating Officer. “Our traditional territories, especially on the coast, have an abundance of clean energy. In fact, the first project we are helping to finance is a two-megawatt run-of-river hydro project owned by the Taku River Tlingit First Nation near Atlin in northern British Columbia.”
With $2 million from each of the Aboriginal corporations, and a $3 million contribution from Canada’s Department of Indian and Northern Affairs, the First Nation Regeneration Fund now has a total endowment of $7 million. It’s administered by Ecotrust Canada Capital, a subsidiary of Ecotrust Canada.
Loans made available through the Regeneration Fund are repaid by the First Nation through dividends and royalties from the run-of-river power project and possibly other sources. Once the loan is repaid, the dividends and royalties become long-term discretionary income that can be used by First Nations for economic or social development.
“The Regeneration Fund is going to provide access to much needed capital for First Nations,” says Sandy Wong, General Manager of the Tale’awtxw Aboriginal Capital Corporation. “It will help First Nations finance equity in independent power projects in British Columbia, and grow Aboriginal ownership in this critical sector of our economy. At the same time, these green energy projects are a natural fit with the social and cultural principles we support.”
It is these types of unique partnerships that are helping to position Canada and it various group as leaders in the area of sustainable development and growth in the area of developing the clean energy business.
Kensel Tracy is The Marketing Coach and is a Senior Partner in the Corporate Coachworkz located in Chelsea, Quebec and offices in Ottawa Ontario.. If you have a unique story on business in Canada, he can be reached at kenselt@sympatico.ca
In this age where virtually every country is looking for cleaner sources of energy Aboriginal organizations are getting involved in the clean energy business in Canada. Canada like other countries in the world are discovering that run-of-river hydro projects can offer more than clean energy and they also have the potential to generate significant, long-term economic benefits for the country’s Aboriginal people.
As the push to develop more clean energy has increased, independent power producers are approaching individual First Nations in Canada on a regular basis with proposals for small hydro development. Under Canadian law, most Aboriginal peoples have certain rights with regard to resource development on their traditional territories.
Aboriginal corporations that provide business financing and support services to First Nations in British Columbia and the Tribal Resource Investment Corporation (TRICORP) and the Tale'awtxw Aboriginal Capital Corporation are taking a major stake in various projects throughout Canada. They also created the First Nation
Regeneration Fund specifically to provide financing to enable First Nations to purchase equity positions in power projects.
“Run-of-river hydro power generation is one area where First Nations clearly have a competitive advantage,” says Peter Lantin, TRICORP’s Chief Operating Officer. “Our traditional territories, especially on the coast, have an abundance of clean energy. In fact, the first project we are helping to finance is a two-megawatt run-of-river hydro project owned by the Taku River Tlingit First Nation near Atlin in northern British Columbia.”
With $2 million from each of the Aboriginal corporations, and a $3 million contribution from Canada’s Department of Indian and Northern Affairs, the First Nation Regeneration Fund now has a total endowment of $7 million. It’s administered by Ecotrust Canada Capital, a subsidiary of Ecotrust Canada.
Loans made available through the Regeneration Fund are repaid by the First Nation through dividends and royalties from the run-of-river power project and possibly other sources. Once the loan is repaid, the dividends and royalties become long-term discretionary income that can be used by First Nations for economic or social development.
“The Regeneration Fund is going to provide access to much needed capital for First Nations,” says Sandy Wong, General Manager of the Tale’awtxw Aboriginal Capital Corporation. “It will help First Nations finance equity in independent power projects in British Columbia, and grow Aboriginal ownership in this critical sector of our economy. At the same time, these green energy projects are a natural fit with the social and cultural principles we support.”
It is these types of unique partnerships that are helping to position Canada and it various group as leaders in the area of sustainable development and growth in the area of developing the clean energy business.
Kensel Tracy is The Marketing Coach and is a Senior Partner in the Corporate Coachworkz located in Chelsea, Quebec and offices in Ottawa Ontario.. If you have a unique story on business in Canada, he can be reached at kenselt@sympatico.ca
Monday, January 10, 2011
Canadian Federation of Independent Business Launches Red Tape Awareness Week
In an interesting twist this month, the Canadian Federation of Business, ( CFIB) launched a new campaign to cut red tape in regards to how business deals with government. With the strength of over 107,000 small business owners from coast-to-coast the Canadian Federation of Independent Business (CFIB) is the big voice for small businesses. For over 35 years, it has represented the interests of the small business community to all three levels of government in their fight for tax fairness, reasonable labour laws and reduction of regulatory paper burden.
So what is red tape exactly? According to the CFIB, it’s a combination of things. Sometimes it’s dumb rules that don’t accomplish what they intend to accomplish. Sometimes it’s complicated forms or language, permit delays or getting different interpretations about the rules from government.
How big is the problem? Thee CFIB says that if you ask any business owner, they’ll tell you a red tape story. Some problems are small; some threaten or have closed businesses. Around 60 per cent of business owners say that it affects their productivity, their ability to innovate and to be competitive in global markets. There’s a huge opportunity here for Canada to get serious about this issue, and have a competitive advantage.
Why should the public care? The CFIB estimates that regulation costs Canadian businesses over $30-billion a year. Reducing red tape translates into more job opportunities, higher wages, lower prices, higher tax revenues and less stress for business owners and their families. The CFIB says that first step toward meaningful change is to make sure the public knows about it and understands that this is a huge hidden tax that frustrates entrepreneurship. The general public might encounter red tape occasionally with renovating a home or getting a passport, but business owners encounter red tape day in and day out being in compliance with business regulations with three levels of government. The CFIB also wanted to give business owners a sense of hope that things can change. Many business owners often feel no one is listening to them or that there’s nowhere to tell their stories and get action.
So who in Canada is the biggest red tape offender? Many say Canada Revenue Agency (CRA), who is responsible for monitoring the collection of taxes. The CRA has made every business a tax collector (unpaid it should be noted) as small business is responsible for collecting and remitting the taxes at both the employee and customer level. In some cases this becomes a Red Tape nightmare. CRA also represents the federal government . But provincial and municipal governments can make life miserable and threaten business, too.
The CFIB differentiates red tape from necessary rules and regulations. Business owners say that red tape could easily be reduced by 25 per cent without harming any of the legitimate health and safety objectives of regulations. That’s the equivalent of a $7.5-billion annual stimulus package for business.
Here are some great Red Tape examples. Duplication is a huge problem for businesses. Often the level of government isn’t aware of the duplication, and sometimes the duplication has conflicting rules. That type of issue can be extremely frustrating.
So what can governments do?The CFIB says it’s pretty simple. They want government to set targets for reducing red tape. They want them to measure and be publicly accountable for those targets. Once those targets have been met, they want them to keep measuring and being publicly accountable and to set a ‘zero increase' target to control red tape going into the future.
The CFIB also wants the CRA to introduce a taxpayer fairness code, to use more tax-friendly language and to give taxpayers the right to get information in writing. They want this for all large and small companies or individuals should be able to call and ask for advice, be able to get that in writing, and then have that written advice respected even if it’s wrong.
Another factor is accessibility. Many CFIB members get busy signals, are put on hold or get disconnected. For example, once the CFIB called the CRA on a member’s behalf, and was disconnected after 17 minutes on hold, then when they called back, got a different answer the second time, asked again where if they could see the issue in writing on the Web site, got put on hold again, this time for 26 minutes, and then were disconnected. The third time they called back, the CFIB rep asked to speak to a manager. The person on the other end of the phone said we couldn’t speak to a manager and wouldn’t give them any identifying information, and said if we left their information, someone would call them back tomorrow. A perfect example of more Red Tape.
What can business do? Business should also contact their Member of Parliament, their local municipal politicians or provincial counterparts and tell them you need more help in cutting out Red Tape.
If this was business and we gave our customers the same type of Red Tape problems you know they would shop somewhere else. Unfortunately governments at all levels have monopolies and they are not customer centric. In that case they can give us all the Red Tape we can handle. For most Canadian businesses we want less Red Tape and better environment to make money.
Want to get involved in Red Tape Awareness Week, check out www.cfib.ca
Kensel Tracy is the Marketing Coach with the Corporate Coachworkz Inc. with offices located in Ottawa and Chelsea, Quebec. He is also the President of Business Over Breakfast Clubs of North America. If you have a story of interest, he can be contacted at kenselt@sympatico.ca
So what is red tape exactly? According to the CFIB, it’s a combination of things. Sometimes it’s dumb rules that don’t accomplish what they intend to accomplish. Sometimes it’s complicated forms or language, permit delays or getting different interpretations about the rules from government.
How big is the problem? Thee CFIB says that if you ask any business owner, they’ll tell you a red tape story. Some problems are small; some threaten or have closed businesses. Around 60 per cent of business owners say that it affects their productivity, their ability to innovate and to be competitive in global markets. There’s a huge opportunity here for Canada to get serious about this issue, and have a competitive advantage.
Why should the public care? The CFIB estimates that regulation costs Canadian businesses over $30-billion a year. Reducing red tape translates into more job opportunities, higher wages, lower prices, higher tax revenues and less stress for business owners and their families. The CFIB says that first step toward meaningful change is to make sure the public knows about it and understands that this is a huge hidden tax that frustrates entrepreneurship. The general public might encounter red tape occasionally with renovating a home or getting a passport, but business owners encounter red tape day in and day out being in compliance with business regulations with three levels of government. The CFIB also wanted to give business owners a sense of hope that things can change. Many business owners often feel no one is listening to them or that there’s nowhere to tell their stories and get action.
So who in Canada is the biggest red tape offender? Many say Canada Revenue Agency (CRA), who is responsible for monitoring the collection of taxes. The CRA has made every business a tax collector (unpaid it should be noted) as small business is responsible for collecting and remitting the taxes at both the employee and customer level. In some cases this becomes a Red Tape nightmare. CRA also represents the federal government . But provincial and municipal governments can make life miserable and threaten business, too.
The CFIB differentiates red tape from necessary rules and regulations. Business owners say that red tape could easily be reduced by 25 per cent without harming any of the legitimate health and safety objectives of regulations. That’s the equivalent of a $7.5-billion annual stimulus package for business.
Here are some great Red Tape examples. Duplication is a huge problem for businesses. Often the level of government isn’t aware of the duplication, and sometimes the duplication has conflicting rules. That type of issue can be extremely frustrating.
So what can governments do?The CFIB says it’s pretty simple. They want government to set targets for reducing red tape. They want them to measure and be publicly accountable for those targets. Once those targets have been met, they want them to keep measuring and being publicly accountable and to set a ‘zero increase' target to control red tape going into the future.
The CFIB also wants the CRA to introduce a taxpayer fairness code, to use more tax-friendly language and to give taxpayers the right to get information in writing. They want this for all large and small companies or individuals should be able to call and ask for advice, be able to get that in writing, and then have that written advice respected even if it’s wrong.
Another factor is accessibility. Many CFIB members get busy signals, are put on hold or get disconnected. For example, once the CFIB called the CRA on a member’s behalf, and was disconnected after 17 minutes on hold, then when they called back, got a different answer the second time, asked again where if they could see the issue in writing on the Web site, got put on hold again, this time for 26 minutes, and then were disconnected. The third time they called back, the CFIB rep asked to speak to a manager. The person on the other end of the phone said we couldn’t speak to a manager and wouldn’t give them any identifying information, and said if we left their information, someone would call them back tomorrow. A perfect example of more Red Tape.
What can business do? Business should also contact their Member of Parliament, their local municipal politicians or provincial counterparts and tell them you need more help in cutting out Red Tape.
If this was business and we gave our customers the same type of Red Tape problems you know they would shop somewhere else. Unfortunately governments at all levels have monopolies and they are not customer centric. In that case they can give us all the Red Tape we can handle. For most Canadian businesses we want less Red Tape and better environment to make money.
Want to get involved in Red Tape Awareness Week, check out www.cfib.ca
Kensel Tracy is the Marketing Coach with the Corporate Coachworkz Inc. with offices located in Ottawa and Chelsea, Quebec. He is also the President of Business Over Breakfast Clubs of North America. If you have a story of interest, he can be contacted at kenselt@sympatico.ca
Thursday, December 9, 2010
There’s a Lot to be Thankful for in Business This Holiday Season
A lot of North America is going through tough times especially our friends to the south who are still finding their way out of the recession. Just when it was thought that things were turning around it now seems that the recession is still got a hold on the U.S. and well in Canada things are still pretty much the same. We are holding our own and things are starting to look brighter every day.
It does not matter much where you are in the grand scheme of business or what religion you practice or preach, the holiday or the Christmas season is upon us and as a world we still have a lot to be thankful for. The following represents my five top business things to be thankful for this holiday season.
One: I want to say thank you for the internet and all the free services provided by the internet. Everything from sharing pictures and photos with friends, talking on Skype and having access to free email and millions upon millions of bytes of information on Google. This is one business tool we should never stop thanking.
Two: I want to say thank you for my Blackberry mobile phone. The Blackberry in my mind is one of Canada’s greatest inventions. Mind you it’s now taking second place to the Apple IPhone and the I pad but hopefully it won’t be there for long and with the advent of the new tablet in the spring, Blackberry should be back in the game.
Three: I wanted to say thank you to my customers. Customers are my greatest asset. They teach me how to run my business. They demand more from me and push me to be better than I could ever be alone. A wise man once said, if you want to know how to sell your product, just ask your customers. Too often as business people we forget that it’s our customers that are really our business. Without them we would not have a business, so thanks.
Four: I wanted to thank my suppliers. Without them I would also not have a business. They help me to produce the products I need to sell. Without my suppliers I would not have the research and development and the help to develop better products. So to my suppliers, thank you.
Five: I wanted to thank all the folks at the National Networker. It’s a great thing that they do month after month providing information for everyone. They have built an amazing resource and without it I would not have a monthly forum to express an opinion and tell some amazing stories. So to the team at the National Networker, thanks and lets have a great 2011 and to you the reader, thanks.
So we have a lot to be thankful for. I left out the usual stuff, like my family, my health and my banker, however those things get thanked every day.
I also thank the creator for making my life an amazing thing and in Canada (and North America for that matter) we have the opportunity to do anything we want in business.
So if you are business person out there and think and wonder when it’s going to turn around, just remember you are connected and you to have a lot to be thankful for. As we move into a new year, there are a lot of little things to be thankful for. It’s the little things that take care of the big things. So when in doubt say thanks and prosper.
It does not matter much where you are in the grand scheme of business or what religion you practice or preach, the holiday or the Christmas season is upon us and as a world we still have a lot to be thankful for. The following represents my five top business things to be thankful for this holiday season.
One: I want to say thank you for the internet and all the free services provided by the internet. Everything from sharing pictures and photos with friends, talking on Skype and having access to free email and millions upon millions of bytes of information on Google. This is one business tool we should never stop thanking.
Two: I want to say thank you for my Blackberry mobile phone. The Blackberry in my mind is one of Canada’s greatest inventions. Mind you it’s now taking second place to the Apple IPhone and the I pad but hopefully it won’t be there for long and with the advent of the new tablet in the spring, Blackberry should be back in the game.
Three: I wanted to say thank you to my customers. Customers are my greatest asset. They teach me how to run my business. They demand more from me and push me to be better than I could ever be alone. A wise man once said, if you want to know how to sell your product, just ask your customers. Too often as business people we forget that it’s our customers that are really our business. Without them we would not have a business, so thanks.
Four: I wanted to thank my suppliers. Without them I would also not have a business. They help me to produce the products I need to sell. Without my suppliers I would not have the research and development and the help to develop better products. So to my suppliers, thank you.
Five: I wanted to thank all the folks at the National Networker. It’s a great thing that they do month after month providing information for everyone. They have built an amazing resource and without it I would not have a monthly forum to express an opinion and tell some amazing stories. So to the team at the National Networker, thanks and lets have a great 2011 and to you the reader, thanks.
So we have a lot to be thankful for. I left out the usual stuff, like my family, my health and my banker, however those things get thanked every day.
I also thank the creator for making my life an amazing thing and in Canada (and North America for that matter) we have the opportunity to do anything we want in business.
So if you are business person out there and think and wonder when it’s going to turn around, just remember you are connected and you to have a lot to be thankful for. As we move into a new year, there are a lot of little things to be thankful for. It’s the little things that take care of the big things. So when in doubt say thanks and prosper.
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