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A few years back, I was standing in a courier shop, filling out the paperwork to send a Christmas present off to my aunt in Montreal (last minute, of course) when I overheard the clerk behind the counter berating a customer for filling out his form incorrectly. It wasn't so much what she said, as the tone of her voice. Clearly, the customer was making her job more difficult and she wanted him to know it.

Curious, I looked up and was suddenly struck by a vision of irony. There on the wall behind her, in large six-inch letters, was the company's mission statement. I'm paraphrasing, but essentially it said that they were committed to providing the best customer service experience available from any business in any industry. And as if to emphasize the point, at the bottom was the giant signature of the company's president.

Well, I'm not one to let a good bit of irony pass me by, so when it was my turn at the counter, I casually made reference to the sign on the wall and asked the clerk what she thought of it. Her reply said it all. "When you've been at a place like this as long as I have, you learn to ignore stuff like that". Wow!

Now this is a large enough company that I'm certain their people have been through customer service courses. Probably more than one. And the packages all seem to make it to their destinations, so their systems are likely fairly solid. So what's the problem?

In a word, it's "culture". Culture is the compass that guides the daily behavior of people in an organization. Its influence over a business is huge, and yet rarely is it paid much attention to.

One of my teachers is fond of saying, "culture eats process for breakfast". What he means is that while systems are important for driving business value, people are critical. In the case of the courier company, while there likely were existing customer service policies in place, they clearly had little impact on the clerk in question. On the other hand, had the clerk been personally driven to give exemplary customer service, a few poorly documented policies wouldn't have kept her from doing just that.

Every business has a culture, including yours. The question is, "how do you get your culture working in your favor?"

To answer this question, we need to start at the beginning. And every great culture begins with great people. Great people for your organization, that is. And great people for your organization are those who share your corporate values. For example, Brian Scudamore, founder of 1-800-Got-Junk?, says he doesn't try to motivate his people, he hires people who are already highly motivated and then plugs them into an environment that nurtures and supports this attitude.

What describes your ideal culture? Whether you're a fun, energetic team of graphic artists or a cautious group of detail-oriented accountants, you need to be as explicit as possible when you're seeking to build your team, so that you don't waste time meeting people who won't fit in.

To build and keep the type of all-star team you need to grow your value and get your business to the next level, you also need to develop a workplace that offers people the opportunity to grow. In other words, you need to give your people a reason to go to work on Monday morning, other than just to collect a paycheque.

Done properly, this is what Dr. Anthony Williams, VP Corporate Learning for Coast Capital Savings, calls a "teaching organization". A "teaching organization" is one in which people are encouraged to not only learn from each other, but to play an active role in educating, supporting, and helping everyone else to improve as well. The result is an environment where everyone is inspired to look for opportunities to make things better.

At Wardell, for example, we have weekly meetings where everyone is responsible for teaching something to everyone else. Usually it's on topic, to do with business, but sometimes it's something on a personal level that everyone can learn from. When we leave the meeting, everyone has contributed something of value to the company and to each other.

To really make this work, it's also important that you continuously share your plans for the future with new (and existing) employees. By inviting your whole team to take part in building your company with you, you create an inspiring environment, which is exactly the type of place great people chose to work. You'll know it's working when you hear your people talking about the company as if they were owners. For example, instead of saying "the company picked up a big contract this week", they'll say "we picked up a big contract this week". The more you hear the words "we, us and our", the better.

It may take some work, but by proactively developing your culture, you can effectively build a workplace that consistently offers opportunities for your team to grow, to be motivated and to contribute in significant ways to the future of your enterprise. And really, what more could you ask for?

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

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Succession dilemma: Without the right plan, your business is doomed to flounder

Hardly a day goes by without my coming face-to-face with the issue of business succession. Every banker, lawyer, accountant, and financial planner I know talks about it. Seminar after seminar deals with this issue, and all for good reason. After all, thanks to the baby-boomer generation, more than two thirds of independent Canadian business owners are planning to exit their businesses in the next 10 years (Canadian Federation of Independent Business, 2006).

But what we aren't hearing about so much is who is going to buy these businesses. Certainly some will be picked up by competitors, some will be bought by managers, and some will be passed on to future generations. However, the grim reality is that the product of many an entrepreneurs' blood, sweat and tears will simply cease to exist.

To avoid this fate, many entrepreneurs across the nation have begun succession planning. And while planning of this kind is absolutely necessary, it's also absolutely pointless unless the business owner truly understands what effective planning looks like for their business. In my experience, many don't.

Succession planning done right, requires that the business owner develop and execute a road map that proactively "productizes" his or her business into a self-sustained, truly valuable organization. Value. This is indeed an elusive word and one that is much more difficult to measure than the revenues, assets and profits we're all used to reading on our financial statements. It is, however, the key to what makes a succession, successful.

So how do we identify and ultimately drive value? To answer this question, we first need to understand that a valuable organization is one that is independent of its ownership. Therefore, the goal of an effective succession plan must be to transform a business from an owner-reliant organization into a genuine investment. After all, as a potential buyer, which would you pay more for?

Consider the following concept I call the "value pyramid."

It consists of four stages, or levels, of business development. As a business moves from one level to the next, risk is reduced, and the business takes a corresponding leap in value. The pyramid is designed to help a business owner, during the process of succession planning, consider the value of his or her business from the perspective of a potential buyer.

Level One: an owner driven business. In this type of business, the owner makes it all happen. Because this level of business is highly reliant on its owner, the risk of a business losing its profitability following a succession is highest.

Level Two: a people driven business. In this scenario, key people in the company, other than the owner, make the business happen. At this level, succession-related failure is reduced, but still plays a role due to the fact that the key people could leave, and thus take valuable information, and even customers, with them.

Level Three: a process driven business. This type of business is run by systems, which greatly reduce the risk of failure after a succession. At this level, systems are in place to ensure that operations continue according to plan, with or without the owner or key employees, so the business is set up fairly well to run itself. This type of business has more inherent value than the first two levels.

Level Four: a culture driven business. In this environment, the culture (driven by both people and systems) make the business happen. Level Four is considered as close to a pure "investment" as a business can come. Its culture indoctrinates new hires into an environment of continuous improvement, based on systems. The result is a "culture of excellence". This type of business has the least chance of succession-related failure, and is therefore considered the most valuable.

Once a business owner determines which of the four levels they are at, they can then move forward in developing and executing a succession plan that will get them as close to a culture-driven business as possible. Exactly how to go about doing that will be the subject of future articles, but you can start right now by asking yourself, "Am I ready to give up some of my control?" It's a tough question for many entrepreneurs, but it's impossible to move your business up the value pyramid without addressing it. Once you're comfortable, however, you may be surprised at how quickly the value of your business will grow.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous columns

How to find the help you need to grow your business

When environmentally-minded Scott Bryk joined his brother T.J. in 2005 as co-owner of Jemev Waste Recycling, www.jemev.ca, he was convinced that their eco-friendly wood processing firm was on the verge of a major market breakthrough.

A series of factors tipped him off, including Ontario's desperate need for solutions to its landfill crisis. Most of that province's garbage was—and still is—being hauled over the border to Michigan. The Walkerton water disaster and an increase in public concern about climate change were other telling signs that a market breakthrough in waste-recycling was at hand.

But what Jemev's co-owners didn't know was how to effectively evolve their wood grinding services into a broader offering. To meet the emerging market need, they would need to venture into organics processing and biofuel development. The necessary developments would be complicated.

They needed a team of senior-level advisors who could guide them through technical and engineering problems, confusing regulatory approval processes, and finding access to new financial resources. They also needed to know how to distinguish between companies in their potential market space that were "green-washing" (a term used to describe insincere environmental efforts) and those actually willing to implement change (i.e. their target market).

Two years later, Scott admits the process of finding and putting in place the right type of working advisory board wasn't easy, but it was definitely worth it. Before 2006, Jemev's revenues were in the $430,000 range. By the end of 2007, business had soared to nearly $800,000.

If you find yourself at a similar crossroads, and are looking to install a committed group of advisors to help your business through a critical transition, chances are an advisory board could be a good solution for you, too. But first you must…

1. Admit you need help.

During their "Eureka" moment of 2005, Scott & T.J. recognized they weren't reaching their market potential and they needed direction on all fronts.

For a proud entrepreneur, admitting you need help can be a tough pill to swallow. But once you do, you may be surprised at the quality of people who are willing to step forward and offer their support.

If you know you need help, it's likely because you have a picture of what you want your business to look like but you can't get there on your own.

Scott, for example, recognized his tremendous need for technical assistance. To get an organic processing facility up and running, he faced challenges from a project management perspective, in addition to the numerous regulatory hurdles he would need to overcome. These challenges were further complicated by, as he calls it, "the difficulties involved in being a company capable of generating greenhouse gas credits in an environment where various levels of government are still unwilling to aggressively deal with climate change issues."

Jemev's advisory board provided the expertise that reshaped the company's service offering. Most significantly, the board advised Jemev to focus its services on core business activities, rather than following industry trends and trying to offer a broader recycling focus.

In Scott's words, "They guided us to use existing wood waste as an input to products and services with a greater profit margin."

Combining the wood they processed with organic material from grocery stores, food processing plants and other industries, Jemev has harnessed a powerful, much-needed waste processing capacity in a province that is in desperate need of waste diversion. As a result, the company has enjoyed greater operational efficiencies and increased profit. Thanks to its advisors, Jemev is on-track to reach $2.0 million in annual revenues by the end of 2008.

2. Consider your options

An advisory board may be a good option for your business. But how do you go about finding one and how do you know they will actually provide the careful, helpful advice you are looking for?

For Scott, the process was much longer and more convoluted than he anticipated. And, this is what you can expect as well. Don't let that stop you, though. I've guided many business owners through this process and the benefits are always worth the effort.

Start by writing a list of dream advisor candidates. These could be industry celebrities, local experts, or even unknown geniuses. They might be people you've known about, come across at an event, read about in an industry paper, or met personally at some point.

Once you have a list of potential candidates, pick up the phone and start talking. In Scott's case, he shared his dreams and goals with his prospective advisors. He told them what he was trying to achieve (mission, vision, values) and gauged their reactions. Were they also committed to the environment? What were their experiences personally and professionally regarding the environment? Were they excited about what he was planning to do?

As a general rule, it's important to get a good feeling that you'll have a few things in common with these people outside of their professional competencies, as well. Because your goal is to build a trusted team you will work with for as long as you need advice, which, lets face it, is likely going to be a long time!

3. Find people you trust

The most valuable advice you'll receive from your advisory board will probably be in response to questions that you won't really want to ask.

That's because questions regarding competencies, expertise, and finances make most business owners feel a bit uncomfortable, maybe even embarrassed. We feel we should already know these things.

At an advisory level, you need to find people whom you can really trust, so that in spite of any embarrassment, you can rest assured they will keep your confidence and provide you with the most honest and valuable advice they have to give.

Scott decided to develop a combination of paid and volunteer advisors. Choosing to hire a financial team, Toronto-based Quest Partners Ltd., has helped him feel freer to discuss some of the more confidential financial aspects of his development.

4. Listen

As a group, entrepreneurs tend to be an opinionated bunch. After all, it's their company and they can do whatever they like. The problem with this type of attitude, of course, is that it diminishes the board's value to the company it is trying to serve, causing members to eventually loose interest.

So the best advice I have for someone considering setting up an advisory board is to make sure you are ready to hear what your board has to say. Advisory boards can be enormously helpful to those with an open mind. They can help you see trouble before it hits you, they can open otherwise locked doors, they can bring credibility to an emerging business, and they can help resolve issues with which you have limited experience. But all of this only matters if you are ready to listen.

5. Do it now!

If you know you need advice, find it now. Don't delay.

Begin the process with one or two advisors and build your "dream team" from there. You'll make a few mistakes along the way and not all of your advisors will work out the way you planned, but if you persevere, you'll end up with a powerful resource for taking your business places you once only dreamed of.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous columns

Turning personal goodwill into professional profits

Description: When a business owner begins to feel like they have bought themselves a job, something isn't right. That's what the owner of Globe Printers, Ken Giesbrecht, determined in May, 2003 when he realized the non-stop demands of owning his small Vancouver-based commercial printing business were more than he had bargained for. After nine years and many self-described "near fatalities" as the owner-operator, Giesbrecht decided to seek out professional help. His motivation for change came mostly, he says, from fatigue. He was tired of being at the constant beck and call of his business and wondered how "real business owners" were doing things differently.

What's confusing to most business owners is that, in the vast majority of cases, the company's financials paint only a partial picture when it comes to demonstrating true business value. They are important of course, but the main difference between someone who is self-employed and someone who owns a sellable business is not net profit; it is the distribution of goodwill.

Goodwill is a major component of the value of a typical business and forms the better part of its owner's "profit" when it's time to sell. Personal goodwill is the portion of that value that is associated with the owner's name, reputation, contacts, skills and abilities. Personal goodwill, however, is not transferable. And unfortunately, it is extremely common to find that the majority of a business's goodwill value is linked directly to the owner and therefore tied up in un-sellable, personal goodwill.

When I first met Ken back in the fall of 2003, he had two basic goals.

1. He wanted to take more time off in the near future so he and his wife could start a family.

2. He wanted to transform his business into a vehicle for his eventual retirement. At this point it wasn't clear to him whether that meant selling the business or simply using it as an income source.

In the real world, not everything goes according to plan and Ken still has a ways to go if he wants to be completely free of his business. But as the before-and-after stats listed below illustrate, he has made some measurable progress towards his goals and is clearly on the right track.

Globe Printers Vital Stats (over 3-year period)

Revenue Growth: From 1.5 to 3 Million

Net Margin Growth: From 10% to 15%

Number of Employees: Increased from 10 to 21

Number of Managers employed: Increased from 0 Managers to 4

Ken's weekly hours running the business: Reduced from 60 to 30 hours/week

Following is an outline of the main steps necessary for transferring your personal goodwill to your business goodwill.

Step One: Begin with the end in mind

A healthy business is made up of two main things… people and processes. So the challenge of transferring goodwill value is really the challenge of transferring your business skills, contacts, reputation and so forth, from yourself to these two important assets.

If you're like most business owners, you likely already know this intuitively but have struggled with implementation. After several years of owning a business, it's common for an entrepreneur to get caught up in the daily running of the business, and thus lose track of the bigger picture.

The best way I know to get past this is to take a short trip into the future. Get a picture in your mind of what your business will look like once it is running like a Swiss watch, and write it down. Not only will this help motivate you into action, it will form a measurable target that you and your team can shoot for.

How big a company do you want? How profitable do you want to be? How many locations would you like to have? What type of service offering would you like to develop? What will your corporate culture be like? These types of questions can be extremely powerful.

For example, Giesbrecht wanted Globe Printers to become the Fraser Valley's largest commercial printer, without sacrificing his family life. It was a simple goal, but by clearly articulating it, he took the first step towards building the business he'd always wanted.

Step Two: Get the right people in the right seats on the bus

Dr. Anthony Williams, VP Corporate Learning for Coast Capital Savings, once told me that "people eat process for breakfast". What he meant, was that your people have a greater impact on the success of your business than anything else, including your systems. And I agree.

So once you're clear on where your business is going, take a good look at the people on your team. Are they the right people to take your business to the next level? If you're not sure, ask yourself this question honestly about each of your employees.

"Given the chance to start over, would I hire them again?"

If the answer is "no", then make plans to replace them as quickly as possible. If the answer is "yes", then make sure they are all working in the right positions and that they have all of the support and training they need.

With Globe, for example, we developed an organizational chart with clearly defined roles and responsibilities. This process then led to several personnel adjustments including the exiting of some employees and the redeployment of others. Some changes, such as the development of new management positions, had to be carefully timed so as not to cause cash-flow problems. Personnel changes are never easy, but if they are made for the right reasons and if they are made in a respectful, open and honest environment, the results can be spectacular.

Step Three: Document your processes

As important as it is to build a company of great people, every once in a while one of those great people is going to leave. And if Mr. Murphy has anything to do with it, it will happen just as you're about to take your first vacation in 10 years.

The only way to ensure that a business will continue to run independently, in spite of the inevitable comings and goings of employees is to systemize it. In other words, to take the knowledge stored inside your head, and inside the heads of your key employees, and to write it all down.

First, develop a picture of the operational workflow of your business from start to finish. This picture will be used to help you analyze your infrastructure in order to determine what systems, strategies and infrastructure will need to be changed or implemented in order to get your business running more efficiently.

Next, begin designing and implementing your individual systems. I suggest beginning with the areas of your business that will give you the "biggest bang for our buck". In Ken's case, we started with his hiring process. It was a labour intensive and overly expensive procedure that was not giving him the results he needed. So we knew any improvement here would have a big impact on the business right away.

Once you develop a clear overview of what it will take to turn your business into a well oiled machine, it's only a matter of diligently putting aside some time each week toward making the transformation happen.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: How to introduce a brand new service

Description: In the ever-changing world of SEO (search engine optimization), gone are the days when you could fool the search engines into giving your site a high ranking simply by repeating key words over and over again in hidden text. Search engines, especially Google, have advanced to the point where they now look for legitimate content and even penalize sites for cheating to get past the system.

For Rick Sloboda, this smelled like an opportunity. So in early 2006, he left his position as communications specialist and managing editor with Air Canada and took the entrepreneurial plunge to start Webcopyplus, a Vancouver-based business specializing in writing website content designed to appeal to both humans and search engines at the same time, or as they say in the biz, they write for both "humans and spiders".

Sloboda is now facing his key challenge—to make his market position known to the right type of customers. A challenge compounded by the fact that his industry is still relatively new. In response, Sloboda has taken a personalized, targeted approach to networking and resource-sharing. And it seems to be working, as this company is fast becoming recognized as a leader in its on-line world.

Vital Stats:

1. Location: Vancouver

2. Website: www.webcopyplus.com

3. Launch date: 2006

4. Revenue growth rate: average of 10% per month since inception

5. Customer breakdown: 56% in Canada, 25% US, 13% Europe, 6% Asia.

From the beginning, Sloboda has utilized networking, both on and off-line, as his primary business building tool. He has dedicated a great deal of time and energy to connecting with copywriting experts, SEO experts, and marketing experts, in an effort to piece together the knowledge he needed to enter into his newly chosen field.

In my opinion, one of the most important attributes for successful networking is the ability to focus one's efforts. And this is especially true for businesses that pursue untested markets. Not trying to tap every resource available frees a business owner to focus more thoroughly on the researched options that are a good fit. For example, on-line, Sloboda has focused exclusively on Facebook, LinkedIn and Digg to effectively find many partners, employees and clients, leaving MySpace, YouTube, and others to one side for now. And he's taken a similarly targeted approach to networking offline as well.

For example, whenever Rick meets someone who is working with his target market in a complementary manner (i.e. a great web designer or programmer), he learns as much about them as he can. He then looks carefully through his own list of contacts to see who might be a good fit for this person, and makes an introduction. The result is the development of a finite number of "networking cells" made up of complementary businesses and individuals, who are all comfortable working with each other on various projects. Rick then introduces his clients into whichever "networking cell" is most appropriate for their particular needs. In return, of course, Webcopyplus is often automatically included in his networking partners' projects and kept top of mind for referrals.

Following are four (and a half) business networking lessons, drawn from the case of Webcopyplus.

1. Your reputation precedes you: Your reputation is the reason people choose to do business with you—or don't. So, even though you may feel anonymous when you're online, you really aren't.

Being an effective resource-builder means starting with the knowledge that everything you do is a reflection of your business. Or in other words, your reputation never sleeps. Ask yourself, is your business a good representation of your message? Webcopyplus, for example, specializes in SEO. If they didn't turn up on Google's top rankings, that would be a major red flag to their business colleagues and customers.

2. Start by giving Networking, as a form of prospecting, is a relatively ineffective approach to lead generation. Pitching people in a social environment can work occasionally, but the medium simply doesn't lend itself well to being used for direct marketing. That doesn't mean it can't be a great source of new business, however. It's all in how you approach it.

Networking works best when you approach it with an attitude of helping others build their own networks first. In other words, your job is to connect great people to other great people. When you develop a reputation for helping others, people will slowly but surely turn to you as their "go-to" person… someone who always knows the right person for the job. And when the job calls for someone with your expertise, it's highly likely you'll be the first who gets that call as well.

3. Don't waste your time As Sloboda quickly discovered, it's impossible to stay on top of every trend that comes along. Save yourself time and energy by developing a list of experts in every industry you work with, who you can refer to as needed. For example, do you know a great lawyer with industry experience? Do you know a skilled marketer who's earned your trust? Do you know an experienced accountant who understands more than just the numbers? Contacts like these are an invaluable resource for you, your network, and your clients. The trick is to make a list of the types of individuals you are looking for first. That way, when you meet them, you'll recognize them right away as someone you want to get to know.

4. Be systematic and stay organized While networking groups are a great way to get started, long-term success will come from nurturing your own networks. As I alluded to above, the best way to achieve your goals is to invest your time in fostering a referral system that offers real value to all involved. This means connecting with people having mutually beneficial goals and, whenever possible, becoming the go-to person in your network.

At Wardell, we use the term CIA (Centers of Influence Advocates) as a fun way to describe the key people and organizations we're surrounded by or work alongside. These are also the people who can introduce us to potential new clients. Take the time to create a system that leverages your CIA's in the most effective and mutually beneficial way possible. This can be as simple as scheduling that person's name to show up on your contact management software at regular intervals, say quarterly, to remind you to contact them. Then, each time their name shows up, find some small way to do something for them. For example, you might send them an interesting article, you might send them a referral, or you might invite them out to an upcoming networking event.

Another great tool is something we call a referral tracking tree. This is an organizational chart that plots your clients back to their original referral sources. For example, you may meet Bob, an accountant, at a networking event. Bob then refers you to two of his clients who become clients of yours. One of these clients then sends you two referrals, while the other sends you none. In a referral tracking tree, you'd show Bob at the top, connected to his two referrals below him. One of these referrals would be connected to her two referrals directly below her. And so forth. A tool like this makes it easy to see that Bob is either a direct or an indirect source of four clients… and someone you might want to invite out for lunch sometime soon.

4.5 And finally, don't forget your manners Webcopyplus automatically sends a note to say "it was nice to meet you" after meeting a new business contact. It's a nice touch. Recently, the owner of a graphic design firm was so impressed by this gesture that they hired Webcopyplus to assist with a project the very next day.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: Tilano Fresco

Vancouver-based Tilano Fresco, manufacturer of a diverse line of decorative tile-making kits, offers artsy craftsy people a new play on the old-world art of "fresco". Each kit provides buyers with all the supplies and instructions needed to personalize their project by transferring their photos onto a decorative fresco tile, marble coaster, glass, or canvas (depending on which type of kit is purchased). Because Tilano Fresco's products are not quick and easy to describe to customers, the company has had to figure out less traditional, creative marketing strategies to engage their target audience. www.tilanofresco.com

Vital Statistics:

Location: Vancouver, BC

Number of employees: 7 full time, one part time

Retail stores carrying products: 3,500 in North America, 85% of these are in the US

Years in operation: since 2002

Annual revenue growth since inception: The business quadrupled in size in its first three years. The company then experienced a plateau — in part because it stopped being progressive. The owners are now focused on taking the business to the next level.

Product line description: Currently there are six core products. The company is releasing its largest number of new products this fall, including five new products.

Many unique businesses have discovered the hard way that, in the marketplace, the flip side of being innovative is that people don't understand what you're selling.

For a unique business like this, the million dollar question is: how can I explain my products or services when they are outside of most people's realm of conceptualization?

The answer is not that complicated. As I've seen in my experience working with many companies like this, the most effective approach is to find and nurture a community of enthusiasts who are proponents of what you're selling. You need to identify exactly who these people are and to let them know how much they need what you're selling.

Assuming you have something people need and want, finding the first batch of influential enthusiasts will lead to a chain reaction, well described in Malcolm Gladwell's best-selling, The Tipping Point. Gladwell does a great job of showing how the most effective way to promote a new business, product or brand is to become adopted by a group of trend-setting influencers who become fans of your business, and essentially are able to do your marketing for you. Of course the theory is easy. The real challenge is in its practical application.

Case in point - Vancouver-based Tilano Fresco, manufacturer of a unique line of decorative tile-making kits, quickly discovered at it's inception in 2002 that it was selling a product line the mass market didn't really understand or relate to. Based on this realization, the company decided to investigate and leverage its early market adaptors to determine exactly where it should be marketing and how it should be marketing.

Explains Randy Orr, Founder, Tilano Fresco, "We knew we needed to focus on people who did get what we were doing, so we honed in on a community of creative individuals already engaged in "arts and crafts" in various forms. There already were enthusiasts out there who shared our values. We tapped into the community of scrap bookers/designers- people who essentially are looking for creative ways to create art that incorporates their personal lives, and adds to their décor. Over the past several years, this initial group of adaptors has been the leverage that has introduced us to and helped us discover new communities of people who are looking for products like ours."

Finding innovative ways to leverage the creativity of enthusiasts has become the foundation for this company's marketing plan. Its initial product enthusiasts have developed into a cult-like following; these people sign up for product updates online and share anecdotes and pictures of their fresco creations. Tilano Fresco has developed marketing strategies that offers these VIP customers free products in exchange for rights to use the pictures/images of exceptional creations (judged by staff). The results of this competition demonstrate to potential customers the extent of what can be done with Tilano Fresco products. Consciously or otherwise, by personally engaging with its customers, the company has strengthened its brand loyalty as well.

Tilano Fresco has also successfully "personalized" its marketing approach with large-scale buyers.

Explains Orr, "Because our product starts out essentially as a blank kit, people need to see a personal connection to visualize just how effective the end results can be. When we introduce the product to buyers, we personalize the kits with corporate logos. And we do the same things with product demos at trade shows and on interviews. Like on Vicki Gabereau Live, I created a decorative tile with a picture of her Labrador Retriever. She loved the result and was touched at the sentiment behind it. The emotion and surprise viewers saw on air demonstrates exactly what people value about this product and why they would want to give it as a gift."

The case of Tilano Fresco illustrates several lessons that any business should consider, when trying to generate interest in atypical products or services:

Investigate unique marketing channels that connect with your niche market

If you're trying to identify and reach a unique target market, ask yourself: where are your customers? Do they go to fitness clubs? Do they read industry journals? Are they part of any on-line communities?

Your objective here is to catch your potential customers in a location where they will be receptive to your message and recognize the ways you could enhance their personal interests.

When you find appropriate niche communities, get creative about ways to help them recognize the ways your product will enhance their special interests. Nowadays there are discussion groups and clubs, and corresponding magazines/publications, for every type of niche interest group.

The internet has become the great enabler in this regard, with its seemingly ever-expanding set of communication tools, such as Blogger, YouTube, Facebook, and so forth, not to mention a plethora of on-line special interest groups.

In my experience, nothing helps you establish credibility more than an honest exchange of ideas. So make your customers feel important by communicating directly with them, and most importantly, giving them a chance to communicate with you as well.

Develop as clear a message as you possibly can

Part of reaching your market involves developing your product messaging as clearly as possible. This can be a bit of a process, so ask for critical feedback and expect some fine-tuning to be needed.

During this process, remain receptive to any part of your message that confuses people. Use language that is simple and encompassing and fosters key elements that people will find personally relevant. If you have a product like Tilano Fresco, which requires explanation, the challenge is to come up with a succinct marketing message.

Pictures are a great way to help get your message across when a product line isn't simple to explain. They really are worth a thousand words. Throughout this process, continuously ask yourself why you are the best choice for your potential customers. Even when they don't have any obviously direct competitors, we find our clients benefit tremendously by understanding what sets their businesses apart from other similar options.

Once you've developed your main product message, you can then expand on this original statement, apply creativity to get your message noticed, make your message memorable, and drive home your message by hitting the emotional triggers uncovered by your customer feedback mechanisms.

Engage with customers based on your core values

How this is done varies depending upon the company.

Tilano Fresco has learned how to play upon elements of its products that most reflect the core values of the company- creative, artistic, decorative, and quality/history. The company has learned that the personal element of the product must appear relevant and tangible to the customer. It wasn't until they made this connection that sales really started to take off.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: Dinner Works

Description: Vancouver-based Dinner Works provides a place where busy people can prepare quality, home cooked meals without the hassle and mess of grocery shopping and cooking at home. Customers choose from an assortment of dinner choices, prepare their meals, and take them home to heat and serve later. A wealth of market research along with a business-finding trip to the United States inspired the owners to open shop in Vancouver's trendy Kitsilano in February 2006. They face a slippery challenge as they try to determine how to reach out to an elusive target market and capitalize upon what appears to be an emerging industry trend.

Vital Stats:

Location: One corporate location in Kitsilano, Vancouver; one franchise in Abbotsford, B.C.

Number of Employees: Three full time owner/operators; one part-time owner operator; two on call casual labor.

Revenue Growth: A rocketing start — the company broke even in their second month Revenues have doubled since then.

Primary Market: The primary market has been the US, but Canada is now rapidly growing. The first easy meal preparation store has opened in Australia. Stores are expected to open in the UK and other parts of Europe in the near future.

The ever-important question of "what's for dinner?" has inspired yet another new trend. Dinner preparation businesses are popping up at break-neck speed across North America. But unlike fast food, take-out, or frozen entrees, specialty dinner preparation centres provide quality, gourmet, home-cooked meals prepared on-site by customers themselves who aren't interested in shopping for groceries or messing up their own kitchens.

When the owners of Vancouver-based Dinner Works, first discovered the idea back in July, 2005 there were approximately 250 of these new outlets in the U.S. and only four in Canada. The door was wide open for entrepreneurs seeking to capitalize on this new trend. Today there are approximately 1,420 of these businesses worldwide, 39 located in Canada.

Like any new trend explored by daring entrepreneurs, it's important to determine if the trend will last and to clearly identify the factors involved in reaching and engaging market demographics, likely not yet even familiar with the trend. Canada has been accused of being slow on the uptake, and in the dinner prep industry, this appears to be no less true.

But Chris Roscoe, Owner/Operator of Dinner Works is convinced that the dinner prep industry is a promising trend: "The reason for our initial confidence in this came down to practicalities. My wife and I were visiting a busy mom in California who had great meals on the table every night- even though she was run off her feet. Her secret was that she and her girlfriends went to a large U.S. franchise dinner prep centre called Dream Dinners, to make 12 meals each every month.

"At the time, we were looking for a new business to start and this seemed like a potentially very profitable industry with high consumer demand. We began the market research process and developed our business from there. We chose to open on the West side of Vancouver where we knew we would have a large and affluent customer base."

Some might wonder at first, who would want to pay to go somewhere outside of their home to prepare dinners, package them up and then take them back home to cook fresh and serve. Why not just visit the frozen dinner aisle at Safeway? Or pick up sushi?

According to the Easy Meal Preparation Company of Cheyenne, Wyoming, "Customers who are drawn to dinner preparation centers live a busy lifestyle, often with little time or energy to commit to the evening meal. They must often make last-minute dinner decisions that minimize nutritional value and all but eliminate quality time at the table. While income is a factor, the premium that these customers place on time makes it less so. These customers also appreciate the high cost of labour, as well as the benefits of wholesale buying."

Statistics estimate that approximately 70% of families represent potential customers for this industry. From an income perspective, this provides a huge and impressive market to entrepreneurs like the Roscoes.

"We have a wide variety of customers but the vast majority are working professionals with children. Our customers share the common element of being time starved and they want to have good food that is easy to prepare. We get the full spectrum of people that cannot cook to people who are very good cooks, the latter are even more "insulted" by fast and take out food. Some people use our food for entertaining and most use our meals for every day of the week eating."

The main obstacle Roscoe faces is finding a way to explain the concept to people.

"Because this still a new industry, and quite different from anything else out there, we've found conventional marketing like advertising has been almost useless for our business. Instead we have a PR person who promotes us to the media. PR has brought in the majority of our business, as well as word of mouth referrals and incentives offered to individuals seeking to host private parties at our facility."

Every new business venture is a risk. But the risk is perhaps amplified for those who decide to pursue ideas not yet readily grasped by the mass market. If you are considering a trendy new business opportunity, the following are a few ideas to consider before you get started.

1. Clarify your target market.

A clear understanding of your target market is important for marketing any business, but it is absolutely critical if your business is in a trendsetting category. Start by getting to know your "early adopters". Who are they? Where do they live? Where do they work? Your early adopters are the people who are ready to try something new and who love to tell others about it. They are the key to getting your new business off the ground. Dinner Works is no exception. Roscoe confirms that the success his business has enjoyed so far is largely attributed to referrals and word of mouth traveling rapidly among groups of trendy, like-minded people in Vancouver.

2. What will the masses think?

You need to take some time to imagine what your business will look like as it grows. When your trendy new business category is adopted by the mainstream, what will your expanded customer base look like? How might they be different from your early adopters? Will they use your products or services in the same way? This type of strategic thinking will help prepare you to stay on top of your industry as your market begins to expand.

3. Focus on the media.

When a business concept is new to the marketplace, advertising can loose much of it's effectiveness as a marketing strategy. A big reason for this is that you are asking people to take your word for something they know very little about. Unfortunately, consumers don't typically see advertising as a trusted source of new information.

On the other hand, new trends make for interesting news stories. So the press is often quite happy to tell your story for you. The bonus here is the tremendous inherent value of the third party endorsement, not to mention the fact that it is essentially free.

4. Be financially prepared.

Because they are untested in the marketplace, growth patterns of trendsetting businesses can be somewhat unpredictable. A trend-focused business can take a little longer to catch on, or it can take off like a rocket as you ride the wave to success. Either scenario, however, has the potential to hurt your cash-flow. For this reason, it's important to have fairly strong cash reserves when embarking on a venture of this nature.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: Kin's Farm Markets

Description: Vancouver-based Kin's Farm Markets, retailers of fresh and specialty produce, have used a variety of growth strategies to grow their business from one to over 20 locations over the past twenty years. Armed with the guidance of a strategic advisory team and tons of first hand experience, the company is now venturing into the world of franchising as a tool for taking their business model national.

Vital Stats:

1. Location: West Coast, expanding to Toronto
2. Launch date: 1987
3. Number of Locations: 22
4. Number of Employees: 600
5. Annual Sales: $55 Million

Kin's Farm Markets is a household name in Vancouver, with annual sales of over $55 million, a network of more than 20 stores throughout the Lower Mainland, and plans to expand across the country. But this wasn't always the case.

The company began as a one-table produce stand at the Granville Island Public Market in 1983. The owners, two brothers recently moved from China, didn't speak English and had no business network to leverage. Yet their dream for a successful business grew into a reality. So what sets Kin's apart from the scores of other business that start small and dream big?

According to President, Kin's Farm Markets, Kin Wah Leung, a commitment to learning has been a big factor in Kin's success. "We had the objective of getting our business to a place where it would not only be successful, but would pretty much run itself. We wanted to grow and we needed to learn how."

When Kin's signed on as a client of ours in 2004, they were remarkable from many other clients we've worked with in that the owners didn't shy away from the substantial amount of work required to get their business in the shape they wanted it to be. They were enthusiastic about the strategic roadmap we created together and they continuously met targeted objectives. Their plan is to expand to 50 stores by 2010 and develop a fully functional franchise model.

"We are now at a point where we feel ready to take our business to the next level and we believe franchising is the logical next step for us," says Leung.

For many businesses seeking growth, franchising can be a good option, but as I tell many of the businesses I work with, it's not a simple solution. The process of turning a business into a franchise requires careful consideration of several key factors. Typically, a business decides to franchise when they reach a point like Kin's Farm Markets where they have experienced success in more than one location and are looking for a systemized method of growth. Franchising can indeed be an effective growth strategy, with fewer of the typical cash-flow challenges associated with rapid growth, once you are up and running. However, several factors need to be carefully considered before determining if it's the right growth model for your business.

Factor One: Consider Your Growth Model Options

To determine whether franchising is a good growth model for your business - or if there are other more suitable options- start by considering the following:

• Is your business duplicable? Can it be packaged into a duplicable model? This is best assessed if you already have more than one location in place.
• Is your business unique?
• How much direct control will you need over your business processes?
• How much of your business relies on your personal expertise? If your business works only when you are there, it's not likely ready for franchising.
• What type of individuals will you need in leadership positions as your business grows?
• What kind of cash requirements would rapid growth place on you?

Other growth models to consider include licensing, partnering, adding corporate branches, or simply growth-in-place, to name just a few. Depending upon the type of business you have, you might even consider using a mix of growth strategies, as opposed to just one. In fact, Kin's did this by opening a combination of corporate locations, partnership locations, and more recently, their first two franchise locations.

The decision to use one strategy over another will be impacted by a number of factors, including, but not limited to, your cash position, the pace at which you wish to grow, the type of people you want to attract, and the amount of control you want to have over your organization as a whole.

Factor Two: Capacity for Documentation and Systems Implementation

To be effective, a franchise business should have all of its systems and processes documented in a franchise manual. Essentially, a franchise manual becomes the operating manual for your business and it's a big part of what your franchisees will be paying for. This manual is usually developed to include detailed instructions for running all aspects of the business, including human resources, accounting, production, marketing, sales and everything in-between.

According to Joseph Adler of Hoffer Adler LLP, a Toronto based franchise lawyer, "Franchise Manuals are critical to the success of any franchise system as they serve as a hands-on instruction guide for franchisees and provide franchisors with an easy way to adapt the franchise agreement to the current needs of the system."

Factor Three: Training and Support

Franchise manuals are one thing, but consistent implementation is another. Therefore it's important to have a comprehensive training program coupled with ongoing support. In the case of Kin's, they provide their franchisees with a one month training course, two months worth of hands-on training, and thee months worth of on-site coaching and support.

The amount of training provided to franchisees will vary with the complexity of the business model, of course, but almost never can a franchisor provide too much.

Factor Four: Able to do Homework

Part of owning a successful franchise is related to the franchisor's ability to do some homework- in other words, to be resourceful. It's important to get to know other franchisors and franchisees to get a clear understanding of what the process of franchising will look like for a business like yours.

For example, the Leung brothers spent considerable time getting to know the owners of Cobs Breads, a rapidly growing franchise that's been opening locations in Canada at a rate of nearly one a week. "As a result", says Leung "we have spent considerable time streamlining our operating procedures, making them as simple as possible for our workers to follow."

Joining the Canadian Franchise Association (CFA) is another way to stay abreast of relevant, franchise-related information.

Factor Five: Get Professional Help

Franchising brings with it its own unique set of challenges, so you may need to change up your professional help a bit. Start by getting in touch with a recommended Franchise Lawyer, consult a Business Advisor with franchise expertise, and make sure your Accountant has experience working with franchisors. Most importantly, introduce your new team of professional advisors to each other, because you'll definitely want them all working together for you.

And finally, if you do become a franchise, you'll need a paradigm shift. You no longer sell widgets; you sell businesses that sell widgets. As you proceed with a new understanding of how to market your franchise, consider strategies that can incorporate and benefit all the franchises you represent.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Case Study: Spectrum Skatepark Creations

Description: Vancouver-based Spectrum Skatepark Creations Ltd. specializes in designing and building innovative concrete skateboard parks. Spectrum's reputation for creativity and uniqueness is what sets this company apart from its main competitor, New Line, a larger company with a longer track record and a more traditional approach to designing parks.

According to landscape architect Jeff Cutler of Vancouver based space2place, skatepark development is a five to seven million dollar per year industry in Canada. And in this tightly competitive industry, Spectrum is struggling to compete against a more established competitor while staying true to a vision for creativity in skateboard park development.

Vital Stats:

1. Location: North Vancouver, B.C.

2. Launch date: 1997

3. Number of employees: Three in the office, plus their construction team of roughly 20 (one outsourced company they work with on all projects)

4. Number of skate parks built to date: 60

5. Revenue Growth: Has doubled over the past year

When a business services a niche industry like skatepark building, there are bound to be some specific challenges.

Jim Barnum, owner of Vancouver-based Spectrum Skatepark is all too familiar with unique challenges. The hurdles began the moment he pitched the vision for his first community skatepark to a municipality in Vancouver, BC. While communities tended to resist skateparks at that time, they have since become almost ubiquitous recreational sites across Canada. Barnum no longer needs to sell the idea of community skateparks. The issue now is to demonstrate how his particular designs are set apart from the competition. Especially because almost 100% of the projects Barnum bids on are also being pursued by New Line.

"My challenge is to differentiate our work through the actual project bid. It's a tough challenge for us because New Line has more projects completed- which means a better track record. Because we're working with municipalities, which by nature tend to be conservative, we have a disadvantage in that we aren't the most normal and mainstream choice. When we win bids it's often because the community values something unique."

Metro Skatepark in Burnaby, BC, for example, has three distinct signature features that act as identifiers; the "Rock Gap", which consists of two boulders excavated onsite, the "18-foot Bonsor Pipeline" fullpipe, with its cantilevered roof deck and access stairs, and the "dual steel Sunshades" between the street and bowl sections. Together, these signature features ensure that the park is unique to its community, and is readily identifiable as Burnaby, B.C, Canada when featured in the media. This helps instill pride in the local skateboard community.

Popular skatepark internet message boards testify that Spectrum has indeed developed a solid reputation among skateboarders for unique, creative parks and pushing the design envelope. These same boards note that the designs of Spectrum's competitor appear sometimes to be very similar or "cookie cutter".

Spectrum and New Line both base their design fees on Architectural fee guidelines: a percentage of construction costs, so competitions are based on the quality of their proposals, their track record, methodology and past projects. A standard community skatepark might be around 10,000 sq. ft and cost around $300,000 to $350,000.

Expansion planning is a big part of the skatepark building business. Spectrum says there is at least 10 years of work left in Ontario, estimating that BC is getting closer to a saturation point, though there is still room for many parks in the GVRD. When a "saturation point" approaches, the company will focus more on the maintenance of completed projects and additions needed.

Spectrum has chosen not to work on projects in the US, on the advice of their legal team, North Shore Law, cautioning that the high possibility of devastating personal injury lawsuits is not worth the financial risk. However, the company has recently been approached by teams overseas including France, Dubai, and Israel. Barnum is in the process of pursuing these opportunities with the advice of a strategic advisor. He is looking to partner with a financial backer and go international.

A company like Spectrum provides an illustrative example of several key factors that every business needs to consider in order to effectively set itself apart from the competition. When the competition is close, as Barnum has described above, attention to these details is critical.

Lesson One: Differentiate

Every business needs to have a clear understanding of why and how its products and/or services are different from the competition. If you can't answer the following questions, you most likely aren't competing as effectively as possible.

1. Why should my customer buy from me, rather than my competitors?

2. Operationally, what can I do better than any of my competitors?

3. How can I make my unique market position obvious to the marketplace?

4. How can I maintain my position as a market leader well into the future?

To remain competitive, it's important to periodically review the answers to these questions. The goal is to continuously understand the unique place your business holds in the market and what sets it apart from the ever-changing competition.

Lesson 2: Have a plan B

Having a Plan B offers protection against the impact of economic shifts in the marketplace. And these can be particularly devastating when the market niche is particularly limited, as seen in the case of Spectrum.

For example, in the skatepark industry, a well publicized injury and/or a serious lawsuit has the potential to significantly impact the willingness of municipalities across the country to build skateparks at all. If this were to become a negative trend, it could drastically impact the future of Spectrum's business. Exploring the globalization of his business (plan B) reduces Barnum's risk of being dependent upon one market.

Being competitive requires that a business project well into the future and develop a plan that looks ahead to potential business markets and expansion opportunities.

Lesson 3: Act fast

When the competition is stiff, the importance of moving quickly on opportunities and development cannot be overstated.

For example, when partnership options come up, get advice quickly and move on it. When a request for proposal (RFP) is available, act on it immediately. If your design team suggests something innovative, be the first to try it.

Acting fast is one of the ways Spectrum has grown successfully and stayed true to its mandate for building the most innovative skate parks.

The best way for every business to do this is to develop a strong network of business experts, before you need them. Surround yourself with the best of the best. So that when you need to make a critical decision or take advantage of an opportunity you have a go-to person already lined up and ready to help.

Niche businesses can be risky. But with the right strategy, the risk can be mitigated, leaving you with a fast, exciting business. Or, like Spectrum, a half-pipe dream come true.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: Babylicious

Description: Vancouver-based Babylicious specializes in hip, modern baby gear collections ranging from bedding to bibs. Rapid growth over the past two and a half years has challenged this small business to expedite significant structural changes and to quickly raise a substantial amount of financing in order to meet retailer demands for Babylicous products.

Vital Stats:

1. Location: Vancouver, BC; manufactured in China, warehouses in BC and the US.
2. Launch date: January 2005
3. Number of employees: 8; currently looking for 4 additional staff
4. Number of Retailers: 350 in North America
5. Revenue Growth since inception: 400%

Rapid growth sounds like a good thing for any small business. But when a small company finds itself in hot pursuit of the mass market, the results are usually sink or swim. According to Stats Canada, approximately 20% of new businesses fail within their first year of operations. This number increases to 45% within the first three years of operations. Why so bleak? Typical culprits are weak management skills and an inability to manage finances. And these factors become amplified when a small business suddenly finds itself needing to grow quickly to meet product demands.

Vancouver-based Babylicious launched its line of colourful baby gear just over two years ago. Within its first year of operations, owner Tina Barkley found the demand for her company's products almost more than she bargained for. Barkley expected $75,000 in her first year, but got $250,000- these figures more than quadrupled in her second year. Suddenly, she was faced with immediate financial pressures related to massive increases in inventory needs. She also needed to find an appropriate warehousing facility and to streamline her shipping system to meet the demands of a growing list of customers.

It sounds like a dream come true, but the sudden influx of business also put a lot of pressure on this small business.

"We hoped for success and expected people to like our products, but we didn't anticipate the ripple effect that sudden popularity would have on the structure of our business. Suddenly we found ourselves face to face with two main challenges: A whole new level of financial pressure and a sudden need to warehouse our growing inventory and find a way to ship our orders more effectively."

As a privately funded company, Barkley sourced some urgently needed cash by approaching a personally-recommended venture capitalist, Brent Holliday of Greenstone Partners, who Barkley touts as "realistic, incredibly smart, and knows corporate fundraising inside and out." This particular VC's experience as a businessman and his knowledge of market values and investor personalities gave Barkley the assurance and guidance she needed to work with interested financiers. Barkley used her personal network of business contacts in a similar way to locate a warehouse that would agree to work with a business of her size.

"This was something I had no clue about. My sales manager Jamie Hampson and I initially started fulfilling orders ourselves out of a small space located in Vancouver. Within four months, we realized our only solution was to outsource to a warehouse. But finding a warehouse that would agree to work with a company of our size turned out to be a major challenge."

Two and a half years later, Babylicious has already beaten the odds and is well on its way to becoming an institution in the world of baby gear. Here are several lessons learned that apply to any small business facing rapid growth.

Lesson One: Join a 12-step Group

Just kidding, but you do need to have a solid understanding of the support group you'll need to take your business to the next level. Your supporters— your advisory team, financiers, Board of Directors, management team, as well as your business and personal networks— will help you ride the challenges you'll face, especially during times of growth.

When you develop your strategic growth plan you must take the time to ensure you have buy-in from key stakeholders. In the case of Babylicious, Barkley continuously consulted with her investors and her advisory team in this capacity. As a result, she was better equipped to meet unexpected challenges like sudden financial needs. Her support group was on board.

Unprepared business owners can find themselves in perilous situations that could have been avoided, such as an influx of orders threatening to outpace the company's ability to fulfill them, or not enough cash on hand to maintain a rapidly diminishing inventory. It's much harder to address situations like these after the fact than it is to invest a little time into your strategy up front. Recent technologies such as on-line shopping mean that a business can literally become an overnight success, but only if it's properly equipped to meet the challenges that come with instant popularity.

It's also very important to know who you can leverage for resources. Time and time again I meet business owners who have found their solutions through their personal and business networks. Babylicious owner Tina Barkley is no exception, her networks served to provide her with the answers to her two most pressing issues- financing and warehousing.

Lesson 2: Know your business and prepare for the occasional "bounce back"

To effectively manage growth, you need to understand your business thoroughly yet remain flexible to required changes.

It's important as a small business owner that you are rigorous about understanding every aspect of your businesses operations, finances and key accounts. You should be able to answer the tough questions, such as what kind of culture are you trying to develop? Who is your target market? How much cash do you need in order to grow? How are your sales systems functioning? What is the turnaround time for orders? And so forth. Questions like these will help you sort out the areas of your business you may need help with.

As a manager, your objective should be to focus on what you're good at, and then delegate or outsource everything else. For example, even if you have a handle on your finances, you'll likely still want to hire a good accountant. You may have creative flair, but decide hiring a graphic designer to design your marketing materials is more effective. No matter how you decide to outsource, continue to keep a firm understanding of the systems upon which the foundation of your business is operating. Especially during times of growth because you'll likely need to access or change these core systems rapidly to meet challenges.

Remaining flexible to change was critical to the growth of Babylicious. Like every business, Babylicious needed to try a few different approaches which required some "bouncing back". For example, in its early stages the company split its inventory between two warehouses in both Canada and the US, quickly discovered this was a premature move, and went back to a Canadian warehouse only. Quick recovery ensured minimal loss.

Another key to flexibility is systemization. This may sound a little contradictory at first, but only when things are done according to a plan, can they be altered with any certainty. In other words, a lack of organization does not lead to flexibility, it leads to chaos. And if a business is allowed to grow too rapidly in a chaotic state, it cannot adapt and ultimately collapses. On the other hand, systemization makes it possible for a growing company to "turn on a dime".

Lesson 3: Remain an optimist

There will be great times and there will be tough times, but through it all, the winners never give up. That's what makes them winners. So if you've got a tiger by the tail, as the owners of Babylicious appear to have, hold on tight and don't let go. The ride may get bumpy, but you'll get there in one piece.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

Previous Case Study: Lug Canada Inc.

Description: Lug is a small Toronto-based manufacturer that supplies retailers nationwide with innovative travel accessories including handbags and gym bags. Owners Ami Davie and Jason Richter merged their creative backgrounds to develop the Lug travel product line. The company has rapidly grown their sales across North America by working with outsourced sales reps. (www.lugtravel.com)

Vital Stats:
1. Location: Head offices in Toronto, Ontario, and Dallas, Texas. Products are manufactured overseas.
2. Launch date: 2004
3. Number of employees: 9
4. Number of Retailers: 500 plus in North America
5. Number of Sales Reps: 17 in Canada, 50 in the US
6. Years outsourcing sales: Since inception

The goal of every manufacturer is to develop an excellent product or product line and sell it like crazy. But getting a new product line out to the mass market can be daunting, especially for a small business learning how to deal with the daily challenges of launching a new company.

In a short three-year time span, Toronto-based Lug Inc. has successfully launched its line of travel accessories into 500 plus retail locations across North America. How did they do it? According to Ami Davie, co-owner of Lug with partner Jason Richter, "Using outsourced sales reps has been the only way for us to quickly get our products into retailers across North America and develop a nationwide presence."

Davie explains, "As a small business, there is no other way we would have had the time or resources to grow our sales as quickly as we have. Working with sales reps has been a critical part of our sales, and we've also relied on our reps as consultants for important sales-related information and to help ensure our products land in the right type of stores."

Admittedly, the process of finding and developing rep groups has been time consuming for this small company. Co-owner Jason Richter elaborates, "Finding the right reps has required that we go out and visit show rooms, ask around to other manufacturers to help us better understand the product lines it makes sense to align with, and actually talk to our retailers to find who they like working with. Those referrals have pointed us to the best rep groups to work with."

Typically, when a manufacturer decides to outsource their sales, they look for established, reputable sales teams/agencies usually who already have relationships with the types of retailers they want selling their products. Because sales agents carry multiple product lines, the main challenge faced by manufacturers is getting reps to promote their products above or on par with the other lines they are carrying.

According to Davie, "With every rep group we come across, there are strong agents and not so strong agents so we do what we can to help make their sales presentations as effective as possible by providing a solid sales rep kit, consisting of the product, press, catalogues, etc. The key here is to build a relationship with each individual rep and make a personal connection while supplying the most up-to-date product information. This serves to establish clear lines of communication and equip reps to sell the product."

A brief case study of Lug's three-year journey down the outsourced sales rep path reveals there are several things that every manufacturer should note when choosing to outsource sales.

Lesson One: Take the time to consider your options

Determine whether your business will be best served by a sales force that is focused exclusively on your products or one that already carries multiple product lines to your target buyers. While exclusive reps can rapidly become experts in your field and offer a high level of energy and focus, established sales teams have the potential to put your products in front of a group of qualified buyers almost instantly.

If you decide to work with established teams, like Lug did (most manufacturers chose this route), you'll need to carefully consider the types of sales agencies that are best aligned with your particular product/product line. For example, Lug found that their travel accessories aligned well with reps specializing in the gift industry, as well as those carrying other complimentary product lines such as stationery or jewelry.

And while you're considering the types of product lines you fit best with, make sure you find out which groups have the best professional reputation, and which are already selling to or have the capacity to sell to the buyers you want to reach. Lug has found it strategic to work with the same rep groups as their competitors, since they're targeting similar retailers.

With each new territory you decide to expand into, expect some trial and error with respect to the relationships and types of new reps you work with. The turnover rate within rep groups is a telling sign here. If reps have generally been with their group for a steady amount of time, that's a good sign. They'll better understand the needs of retailers and likely have a better success rate selling your products.

Lesson 2: Outline your expectations

Once you've found a suitable rep group to work with, it's a good idea to develop a contract, establish a three month trial period and outline exactly what your expectations are during that time. Include things like your minimum sales expectations, reporting schedules, and compensation details. Because reps are based on commission, they can be a very cost effective way to grow sales. Industry standard in the gift industry, for example, is 15-17.5% of sales. However, you need to be careful you don't waste a lot of time managing your relationships with unprofitable reps, a trap many fall into that can be avoided up front by clear communications.

One unnamed Vancouver-based clothing manufacturer ended up spending thousands of dollars and resources trying to nurture a relationship with a Quebec-based sales agent who ended up opening only two accounts in one year. The time spent flying across the country to meet the rep, training and sending products, not to mention lost business that could have been developed during that year, was a financial strain that this small, company really couldn't afford at that time.

Lesson 3: Motivate your reps

A sales agent can only sell a product successfully if they know and hopefully have an appreciation for the product they represent. It's up to you as the business owner to motivate your reps to believe in and sell your products as long as they are working for you.

You can do this by providing materials that will educate your reps — such as product news or updates; supplying reps with an ample stock of demos; and offering incentives such as a strong commission structure. Of course you also need to make sure your reps know the features that determine why retailers will want to buy your products in the first place. So take the time to educate them and answer their questions. Remember, it's a two-way street. The more support you can provide reps for selling your products, the better job they'll do when selling your products to others.

Mark Wardell is President of Wardell Professional Development Inc. (www.wardell.biz) an advisory group specializing in growth management for owner-managed companies.

PREVIOUS CASE STUDY

Case Study: Industrial Artifacts

Description: Manufacturer of one-of-a-kind designer furniture and decorative accessories made out of a variety of mostly rescued, historical materials such as old doors, wheels, old traffic lights, and discarded parts of equipment. Currently this company operates from one retail shop located in Vancouver's trendy Gastown area. Retail space is adjoined by a workspace where all products are made. (www.industrialartifacts.com)

Vital Stats:

1. Location: Vancouver, BC
2. Launch date: 1998
3. Revenues: Sales have almost tripled over the past six years.
4. Number of locations: 1
5. Number of employees: 4
6. Recent media attention: Growing strong

Sustainability is no longer the little brother of mainstream business. In fact, sustainable businesses are popping up all over the place; a movement due in part to the fact that sustainability itself is gaining broad appeal among the mainstream population.

Witness the launch of environmentally friendly clothing lines by companies like Levis and H&M, and eco-friendly makeup by designers like Stella McCartney. Clearly, Hippies and tree huggers aren't the only ones who care about the ways sustainability factors into our daily purchases.

While some say the popularity of sustainability is more about perception than ethics, the fact that CEO's everywhere have the phrase "triple bottom line" on the tip of their tongues tells us that sustainability can indeed be profitable. This phrase indicates that a broader spectrum of corporate values is taking shape. Measuring the success of a business means considering social and environmental impacts, as well as economic profitability.

Vancouver-based Industrial Artifacts (IA) is an interesting case study of a small, sustainable-minded pioneer on the eco-friendly front.

Launched in 1988, owner/designer Ross McMillan set out with a simple goal: to create innovative designer furniture and home accents without damaging the environment.

McMillan's business plan proceeded with a commitment to making designer products using solely wasted materials. He began by actively researching the possible avenues he could explore to acquire quality, free production materials. Networking was (and still is) an important part of his plan. McMillan developed a network of production resources, such as construction site contacts, who call him when they have appropriate materials available. He also developed a business network of like-minded artisans to encourage one another to remain innovative on the sustainability front. It helps that McMillan is also the manager and curator of an art gallery.

Industrial Artifacts has successfully incorporated sustainable ethics into its marketing by providing a story with each purchase, that lets people know how recycled materials are (and can be) used in every creation.

Business planning and goal setting, McMillan admits, have not been the strongest area of his business development. Since developing a more strategic plan six years ago, the overall profitability of this small company has increased, as evidenced by a tripling of revenues over the past six years.

Consider the following lessons drawn from the growth of Industrial Artifacts. These lessons can be applied to any business seeking to be both sustainable and profitable.

LESSON 1: Develop a clear corporate vision that weighs all costs.

Any business that chooses to operate on principles of sustainability instantly has the advantage of a built-in mission statement, and one that will likely resonate well in today's increasingly image conscious, mass marketplace.

But because your sustainable products are likely more costly than the non-sustainable alternatives, it's essential that you understand how much more people will actually be willing to spend to make that eco-friendly purchase. Develop your vision from this place. You need to identify where your market is shopping and then clearly and specifically articulate to this group why they should feel good about buying from you in particular.

Industrial Artifacts has found that people will pay on average 15-20% extra for their environmentally sensitive products. Over the past two years especially, they have noticed that people are willing to spend more on a piece of their furniture if they know it's made responsibly and locally.

LESSON 2: Be consistent (don't try to fool the hippies).

If your business really is about sustainability, you need to ensure all aspects of your operations, like your packaging and production methods, are consistent with your mission statement.

For example, if you're selling organic frozen food, don't make it microwaveable. This will conflict with the "natural" image you're trying to achieve. More importantly, make sure you are using recycled packaging produced in environmentally friendly ways. These are the details that eco-conscious consumers will notice and weigh when deciding which types of products to buy. Make sure they have every reason to feel good about yours.

Industrial Artifacts has effectively incorporated its vision into every aspect of production and marketing. "With each design, we include a First-Life Description that preserves the story of its former industrial use. We all need to be better educated on how easy it is to make small changes in our life which can create very positive changes for the whole world, especially when others choose to make more sustainable choices with us."

LESSON 3: Plan for the long-term (run your business like a pro).

Many sustainable minded businesses begin with a great idea and proceed with production. Industrial Artifacts was one of them. McMillan acknowledges that a lack of planning was his weak point, "A 'creative' by nature, I needed to turn to professionals to put the systems in place that have better equipped me to run the business efficiently. Being better organized has allowed me to focus more on the creative aspects, which is what I wanted to do from the beginning." It took him a few years to gain this realization and put an effective system in place. Profitability followed suit.

It's very typical for a business owner to specialize in his or her trade or service, but not in business management. As a business owner, you need to remind yourself that you can't afford not to take the time to create a long-term strategic plan for your business. You need to develop a roadmap that will ensure you reach your goals. So take the time to research the market, identify niche marketing groups, plan for a longer sales cycle (sometime sustainable products take longer to be reused) and whatever other elements of your business require planning and consideration.

As a result of better planning, McMillan now has more time to focus on his designs and increase his distribution to large urban markets in the United States

LESSON 4: If you want to help the world, then let the world know.

If you're a sustainable business, you shouldn't be operating in a bubble. You're already making a difference, so it's important you let the eco-friendly community and everyone else know about it.

Industrial Artifacts did several things right in this regard. First, McMillan was instrumental in bringing the first Sustainable living Expo in North America to Vancouver. As a sustainable business, you too should be researching and leveraging the networks of sustainable-based coalitions and groups you can join to let people know what you're doing.

The internet is a big tool in this regard. McMillan leveraged the web by creating an interactive online network to promote sustainability and educate people about ways to buy sustainable products (www.betterwaytolive.net), like a Craigslist for sustainable living. It's important to align your business with a sustainable community.

There are a growing numbers of consumers using the internet to find ways to make more environmentally friendly choices, so make sure they know where to find you.

There are many steps any business can take to have a positive social and environmental impact while at the same time becoming a profitable enterprise. But it's important to remember that sustainability should be an addition to the overall goal your business has of creating top quality products or services, not an end in itself. Done right, social capitalism can be a winning strategy for all of us.

PREVIOUS CASE STUDY

Capers Community Market

Description: A specialty grocery store focused on organic, natural and local products.

Vital Stats:

1. Location: Vancouver, BC

2. Number of locations: Four

3. Newest location: Cambie Street

4. Number of employees: 480

5. Amount spent on grand opening campaign: Not disclosed

Opening a new location can be a harrowing undertaking. You hope your new customers will flock to your store like Starbucks, but as a small business, your branding budget is usually less than a cafe's petty cash.

Fortunately, opening a new location successfully isn't just about your budget.

Capers Community Market in Vancouver is an interesting case study of the ways a business can use creativity to gain the respect, loyalty and buying power of a new neighbourhood. If you're planning to open a new location, here are three good lessons.

Lesson # 1: Let people know you're coming

According to Aron Bjornson, Capers' marketing manager, the success of the company's newest location on Cambie Street had a lot to do with pre-opening initiatives, "We chose initiatives that helped our business build personal relationships with our new community." Capers strategy exemplifies creative marketing steps any business can take.

Be a giver. Capers introduced itself to its new community by giving a (well-publicized) donation to a local inner-city school. Choosing a good deed, vs. advertising alone, helped Capers leverage community loyalty in addition to publicity.

Send a note. A promotional mail-out is essential. Capers maximized their mail-out by advertising product specials at their new location while promoting the specials at their existing four locations, so all would benefit.

Make a personal introduction. Send a friendly 'street team' out to meet your new neighbours and give out free water, coupons and other premiums, like Capers did. This is an economical way for your business to promote its brand and place featured products literally and physically in the hands of potential shoppers.

Lesson #2: Consider all the potential partners you can involve in promoting your grand opening.

As a small business, the limitations of your budget will inevitably determine just how much you can do to promote yourself. Capers made the most of their marketing budget by creating joint marketing opportunities designed to include partners like their suppliers and other community groups. Any business can do this, by considering the following points.

Understand yourself. The Capers brand is all about local, natural and organic products. A solid understanding of its brand was the springboard for each of Capers marketing initiatives. Based on a clear brand vision, Capers successfully identified appropriate niche groups to partner with to achieve their marketing goals- including local artisans, celebrity chefs, and the arts community.

Be creative. Not only did Capers identify appropriate groups to partner with for their grand opening, they brought people together collaboratively to build events that were good for the community. One of these events was a fashion show hosted at their new location challenging local design students to incorporate food into fashion designs. Capers invited local Celebrity chefs to further attract media, foodies, and target shoppers.

Leverage your give-aways. Capers dramatically reduced the costs of marketing their new location by inviting suppliers to provide promotional product give-aways. Activities like the street teams, fashion show, and grand opening events were presented to suppliers as distinctive marketing opportunities. Suppliers sponsored catering as a way to promote new products, featured at the store. Every business can learn from this by simply considering the needs and goals of new or local suppliers.

Lesson # 3: Don't forget your post-opening.

Since we're talking about how to make a big splash when opening a new location, keep in mind your plans to continue attracting publicity even after the grand opening festivities are over.

Leverage the publicity of your opening like Capers did, by putting pictures of the opening festivities on your website, and make sure to showcase everyone involved. Media and the general public will be particularly interested in images that demonstrate how your business is helping build up or bring together your new community.

Over 450 people lined up around the block at Capers Grand Opening- even Starbucks would be jealous of that!

Mark Wardell is President of Wardell Professional Development (www.wardell.biz) an advisory group specializing in growth management for privately held companies.