A Brand is the Consumer’s Reaction

Posted on June 12 2013 | Author: Jennifer Kalanda

Understanding your company’s brand can seem daunting, but it’s very important and can mean a greater competitive advantage.

Defining your business and your customer is crucial.
If your company has entered the market, branding has already begun whether it is intended or not. How so? Simply that your company’s brand is the perception received by its market. It’s your promise to the customer and it is crucial that those promises are kept. Ensure you are confident about why you’re in business and that your message is loud and clear. Your passion for what you do will help to define your brand and your relationships. Similar to any relationship in life, the relationship with your customer is no different; it’s built on the foundation of trust. Trust helps create and reinforce a positive perception and it must be earned through the ability to successfully meet expectations with every interaction.

A brand is the consumer’s reaction to the products and promises.
The brand of a company is only as strong as the community that supports it. As Wayne Roberts, President of Blade Creative Branding explained at a RIC Centre workshop, those relationships become the community around your brand and ultimately create brand ambassadors. Your ambassadors, the satisfied customers may or may not refer future business right to your company’s front door, but their positive perception of the company is accessible.

Customers are unforgiving if the trust is broken.
Positive perceptions and satisfied customers are imperative in today’s world where social media is at everyone’s fingertips. That rule where 'the average unhappy customer tells 10 people about a bad experience and only tells 1 person about a good experience' is archaic. Between Facebook, YouTube and Twitter alone, an irate customer can now tell hundreds or even millions of people about their bad experience in just 140 characters. Dave Caroll wrote a song and created a video about United Airlines breaking his guitar. To date, the video has been viewed more that 13 millions times. The chorus of his song summarized his experience and communicated his perception of a United Airlines brand. Manage your brand and media reputation through social media monitoring and Google Alerts; be sure to respond quickly.

Promote your accomplishments.
Create trust and confidence in your brand by aligning with other established entities. Canada Brand for example, was designed specifically to promote trust in Canadian products in both domestic and international markets. Canada Brand gives Canadian products a competitive edge by forming an emotional bond with consumers and provides a strong identity that is readily recognized.
Watch out for the opportunity to apply for awards. Winning an award is a positive way to establish credibility and a great opportunity to identify your brand with that of the award.

It’s important to remember that to the consumer, a brand is both tangible and intangible. The intangible aspects of branding are arguably more important. The good news is this doesn’t cost millions, but your customer is ultimately the one who decides what your brand is.

Jennifer Kalanda
Events Coordinator

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TEAM = Together Everyone Achieves More!

Posted on May 07 2013 | Author: Laura Millson

It is one thing to create a team, but quite another to create teamwork.
Although there are several ways to define teamwork I prefer the French term “esprit de corps” which means “a sense of unity, of enthusiasm for common interests and responsibilities.”  It captures not only the idea of working together, but doing so in a way that everyone is inspired and supported by those around them.

“A team, it’s not just a group of individuals who work at the same location or have the same logo on their business card. A real team is made up of people who may be unequal in experience, talent or education, but who are equal in their commitment to working together to achieve the goals and good of the organization, each other and their customers.” (Or in the case of Bioenterprise our “entrepreneurs)                 ~Patricia Fripp, The Genius of Teamwork

This motivated me to focus my blog on complimenting the creative and insightful team that surround and inspire me on a daily basis here at Bioenterprise.

I have had the pleasure to contribute in various business environments where teamwork is a proven and essential part of the company’s success. In each case a team comes together when individual strengths and skills are combined focusing on a common goal or direction. It has been said that teamwork is the “glue” that keeps employees together by promoting strength, reliability and support. It is also the “oil” that allows a team to work smoothly towards targets, maintain momentum and overcome obstacles.
At Bioenterprise, we thrive to support entrepreneurs to excel as they commercialize their agri-tech innovations and take pride in the work we do providing counsel and support, guiding them towards successful beginnings and working collaboratively with them.

Through our experience ideas are better implemented with a support team in place. It should include people to help you engineer your idea, a mentor to coach you along the way and a business partner with complimentary skill sets.

I read a brilliant book we recommend to entrepreneurs “The Art of the Start”, by Guy Kawasaki. www.artofthestart.com.

Kawasaki says, “Successful companies are started and made successful by at least two, and usually more “soul mates”. After the fact, one person may be recognized as the innovator, but it always takes a team of good people to make any venture work.”

To help a team be effective here are some suggested guidelines:

• Set and communicate goals - this gets everyone on the same page and provides a guide of what is to be done.
• Measure progress - goals only work if the progress is measured.
• Establish a single point of accountability - good people accept accountability; great people ask for it, so establish it a person held accountable is motivated to succeed.
• Reward achievers - they are the ones that deliver.

But there is more -- teamwork suggests that people work in an atmosphere of mutual support and trust.   It should also foster an increasing maturity of relationship, where people are free to disagree constructively, and where both support and challenge are a part of helping teams work.

When teamwork is in place you tend to see:

• everybody pulling their weight;
• everyone pulling in the same direction;
• depending on your colleagues to deliver what they said;
• getting help when it’s needed;
• sharing an exciting vision of the future; and
• co-operation and blending of each others strengths.

So I think it is safe to say that teamwork is a group of people working together, creating a great spirit and working atmosphere, and supporting each other so that their strengths combine to enhance what they do. That is what I enjoy everyday!

Laura Millson
Entrepreneur Services and Office Operations Coordinator

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Due Diligence: Checking for Your Entrepreneurial Blind Spots

Posted on April 10 2013 | Author: Doug Knox

The term “due diligence” conjures up images of bankers, investment analysts, regulatory and tax investigators who dig through volumes of documents in order to “discover” the good, the bad, and potentially the ugly or illegal “truth” about the workings of a company. In fact, for the Entrepreneur, the term should be a guidepost for what needs to be researched and confirmed before attempting to bring a new product or service to a consuming public.

There are some common assumptions made by entrepreneurs that become “blind spots” that can disrupt the plan and progress of a new or evolving company. Some indicators of potential blind spots are in statements made by the Entrepreneur. These are starting points for due diligence on the validity of the statement. Here are a few representations with some of the actions the entrepreneur should cover to validate the assumption.

“Nothing like it in the market”:
This immediately raises the questions – “What is it?” and “Why is there nothing like it?”
If it is truly innovative, the discovery activity should focus on:

• How does it work? What makes it so unique?
• Does it address a market need?
• What is similar in the market segment or some other market?
• What will it replace that is serving the market currently?
• Are there similar products in other parts of a global market?

“There are no competitors”
This assertion typically follows the assumption above. Believing the product or service is absolutely unique puts the blinders on when looking at the market to be entered. In general, a skilled analyst will find a perceived competitor in as little as 5 and 15 minutes. The entrepreneur then has to attempt to justify the statement or concede an error in perception.
In fact, identifying competitors does a number of things for the program:

• It validates the perception that there is a market.
• It assists in establishing the market size and market value.
• It assists in identifying market niches and targets.
• It provides a measure of the scope and breadth of the market beyond the local region.

“Everybody will see the benefits of this product”
The perception of value in all aspects of an individual’s life is formed by understanding, experience and education. Perception cannot be negotiated. As a result, a product or service entering the market needs to take advantage of the “prior art” in the commercial space.
To that end, the product should be perceived as:

• An enhanced market offering to sustain a market edge
• A replacement of existing products to take a market lead
• A novel offering in an existing market to “push the envelope”

On the other hand, there may be a requirement for significant effort in educating the potential market if the offering is perceived as:

• A market disrupter making an advancement that could not have been foreseen
• A paradigm shift that creates an entirely new market definition

Regardless, education takes time and money!

“This premium product will get a premium price”
An understanding of the pricing strategies in the target market is critical to a successful market entry. There are a couple of comparisons that could be made among the competitors in the market.

• Price / performance
• Price / benefit
• Price / durability or product life

If the differentiation between the existing offerings and the new offering is strong, perhaps a premium price can be achieved.

“There’s a huge global market”
Identification of markets for a product around the globe involves a considerable effort. The research must first decide how to define the global regions. This partitioning can be different for various products or services. Here are some of the possible regional definitions:

• Canada East / West
• USA East / West
• North America including Mexico
• South America
• Europe Western / Eastern
• Middle East
• Africa
• Australasia
• Southeast Asia
• India
• China
• Pacific Rim

Once identified, the research should attempt to size the market in each region. Sizing should be in terms of volume and revenue.The real issue is the strategy to address a global market or any market beyond the local market.
Market access in each region and its ability to support the pricing and cost structure will be the limiting factors. The cost of entry and the time to develop the sales base often eliminate regions from a plan.

“We have proven it in the lab”
This is a deadly assumption where processing technologies are required to produce the product. The controlled environment of the lab and the very precise application of weights and measures to the development can mask the pitfalls of scaling a process to commercial levels. Typical of the issues are:

• The precision of the weights and measures when increased to several hundred or thousand times the lab input
• The control of the quality and consistency of the input
• The monitoring and control of the processing technology as the volumes increase
• The impact of the cost of the commercial scale equipment on the pricing of the product.

Mitigating these issues is the role played by organizations that specialize in providing “pilot plant and process” facilities and services to optimize the scale up.

Due diligence is a vital activity in the development of a company’s strategic plan. It is worth the effort and the time to seek the resources that are available to assist in providing information to complete your research. Look to your local innovation and business development centres for early advice.

Doug Knox
VP Technology

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Business Planning

Posted on March 13 2013 | Author: Tom Dowler

Business planning…this can be an all-consuming undertaking for any company. It can take up significant time and resources, both of which are scarce commodities for small companies. Your company already expends maximum effort to managing critical functions for its business activities, such as sales & marketing, manufacturing, and business development.

However, a functioning business plan is critical for charting the direction of a company, activities the aforementioned “scarce commodities” will be directed towards and of course, raising money from public and private sources.

Here are some tips and guides to getting started.

• Determine who the business plan will be written for. Is the intended use for internal strategic direction or will it explain to potential investors or funders the direction of the company and why it is worthy of investment?
• Understand how each section will be approached. There are plenty of templates out there, the general sections included in each focusing on (i) how your business came to be and the commercial purpose it will serve, (ii) the products or services you will be selling, as well as further development required to bring product to market, (iii) the technology platform that makes your company unique (iv) the state and trends of the markets your product may be directed towards, (v) the model by which you will moving your product to customers, and of course, (vi) corporate and financial sections. A strong knowledge of each of these focuses helps shape and articulate your value proposition, important in moving your business in the right direction and finding that “low-hanging fruit” you keep hearing about.
• Supplement your knowledge in sections of weakness. When contemplating your approach, it will be apparent which sections are areas of strength and which are areas of weakness for your company. Areas of weakness should be more difficult to frame, so determine how your knowledge may be supplemented through research, advice from partners or other sources of assistance you identify.
• Dig in and get writing! There will likely be numerous drafts and iterations over the course of business plan development but getting started is often the toughest part.

Be aware that writing a business plan requires a great deal of time but will uncover new opportunities and strategies not yet considered and in the long-term, will be one of the more valuable activities you undertake as a business.

Tom Dowler
Senior Business Analyst

Image credit: David Castillo Dominici / FreeDigitalPhotos.net

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Conference Review: Agri Innovation Forum

Posted on January 03 2013 | Author: Jennifer Kalanda

In December, Bioenterprise represented the Agri-Technology Commercialization Centre at the Agri Innovation Forum in Calgary, AB. The Agri Innovation Forum is dedicated to showcasing the highest potential emerging, growth stage, and established agri-businesses. The event was well attended and brought together corporate strategics and active institutional and private investors with entrepreneurs and commercialization professionals.

The conference hosted several panel discussions from venture capitals, corporations and industry leaders as well as allocating ample networking opportunities for the very outgoing audience of delegates. The two-day event also showcased 13 quality company presentations who were prime for investment.

The conference opened with an introduction to the investors who identified what they look for in investment opportunities as well what entrepreneurs need to be aware of when seeking funding. Patrick Morand, President of Open Prairie Ventures followed this panel with a keynote presentation about investing in agri-businesses from the venture capital’s perspective. The session titled “Selling to Bunge Ltd” was very interesting as it provided insight into what can be a lengthy and difficult process. Miguel Angelo Oliveira, Executive Director, Global Innovations from Bunge Ltd. offered valuable recommendations for companies looking to sell to a large corporate strategic. He explained to the delegates that you have to find YOUR champion within the corporation; your champion of the change and the innovative technology. Reaching out to the right person will ensure you have someone committed to seeing the deal through the complicated processes of the large corporation.

The second day of the conference began with an industry and investor panel, which addressed industry trends and how they navigate through the growing landscape of opportunities. An insightful discussion held by corporate strategics followed, who elaborated on the venture capital market and how they develop strong portfolios of investments. Finally Dion Madsen, Co-Founder & Partner of Physic Ventures closed the conference with his keynote address about the future of food, the innovation that needs to happen and why failure is not an option.

Please visit our Events Page for a list of upcoming industry related conferences.

Jennifer Kalanda
Events Coordinator

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3 Critical Elements of an Investor Pitch

Posted on December 17 2012 | Author: Admin

The 10 minutes or so an entrepreneur has to pitch an investor can often make or break the future of the startup. When the encounter goes well, millions of dollars in financing can propel an idea into a successful reality. But, more often than not, entrepreneurs don't nail the pitch.

The investors at New York City-based venture capital firm FirstMark Capital, for example, receive more than 1,000 inquiries from entrepreneurs each year. They meet with only a couple hundred hopefuls, and it can be clear within the first few minutes if an investment is worthwhile or not.

FirstMark founder and managing director Lawrence Lenihan and his team have seeded star companies such as the social-sharing site Pinterest, online ticket marketplace StubHub, and e-commerce platform Shopify. We sat down with Lenihan to find out what he finds most important in a pitch. Beyond having a strong business model, here are the three elements he considers most crucial:

1. Know the investment firm.
If you want to get on the radar of an investor, you'll want to know something about the person and what his or her interests are. "Because if you don't … I lose interest immediately," Lenihan says.

Venture capital firms, and sometimes angel investors, have areas of expertise or a theme in their investment patterns. Making sure your company fits that theme is key to your pitch.

2. Know your numbers, and listen carefully.
Aspiring entrepreneurs must know the key financial drivers of their business. If a founder has to "get back to you" on revenue figures, it's a red flag, Lenihan says.

But they must also listen carefully when an investor challenges those numbers. "If I tell you I don't buy your model, I wouldn't expect you to say 'Oh, OK, you're right, let me go start over,' but I do expect a conversation," he says. Oftentimes, founders answer questions by repeating parts of their prepared presentation, unable to adapt or admit any areas for improvement.

3. Show why are you excited.
In other words, why is your company the greatest thing you could be spending your time on? "It's amazing how many people come in presenting their business in an almost clinical way," Lenihan says. "You don't want to be bouncing off the walls, but you want to be able to explain why this is an enormous opportunity you actually care about, with real concrete and tangible reasons."

It's about creating a personal connection with the investor. While it's important to identify a market poised for growth, to solve a pain point and articulate a customer acquisition strategy, investors want to work with people they like. The human side of a pitch meeting can be as important as the idea and the supporting data, Lenihan says.

By Julie Cohn from www.entrepreneur.com
Image credit: Shutterstock

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.

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Tips About Access to Government Funding

Posted on November 19 2012 | Author: Admin

Tips about access to government funding with Dan Mathers (MaRS IAF), Stuart McKeen (FedDev Ontario) and Alex Hodgson (1DegreeBio)

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Keep it Lean

Posted on September 28 2012 | Author: Braden Kemp

Make sure your solution has a problem

Entrepreneurs are often the most intelligent, creative, and gutsy individuals out there – but even the best and brightest have a hard time guessing what the market wants.

Case-in-point: Segway. The founding team at Segway was made up of incredibly brilliant individuals and was backed by some heavy hitters in the venture capital space. They truly believed that their idea would revolutionize urban transportation. So, after collecting over $100 million in funding they set about the stealth development of the next big thing.

What happened? Well, not much. We still drive cars to work, or take the bus, train, subway, or bicycle. The original vision flopped – and it cost a lot of money. They’ve found their market now, but was it a lesson that was really worth a hundred million?

Today’s startups are becoming highly successful very quickly, and with less money than ever before. How?

Among (many) other things, the lean concepts of people like E. Ries, A.Osterwalder, S.Blank and A. Maurya are creating a movement of small, agile, and intelligent startup teams. These teams understand a key concept: don’t build it until you are as certain as possible that people actually want it, and are willing to pay you for it.

Here is a list of tips that have been synthesized from a variety of authorities on agile/lean development:

1. Start with a market need
   • What is the problem? Who has it? Why do they have it? How many of these people are there? Remember, you are making assumptions here.
2. Develop an initial business model based on your assumptions
   • The Business Model Canvas works well here. Don’t write a full-blown business plan yet.
3. Test your assumptions
   • You have made a bunch of guesses – now it’s time to see how wrong you are.
   • Get out of the building! Talk to 10 (or 20, even 100) real people about the problem you think they have. Is it truly a problem? What are they doing now to solve it?
4. Develop a product vision
   • Now you understand the problem – how will you solve it?
   • Test your vision “If I could solve your problem with this…”
   • Learn from the customer’s feedback – be ready to pivot

Once your product vision has positive traction in your market, along with commitments (or enthusiasm, at the very least) to purchase it’s time to build out the Minimum Viable Product.

The road is still fraught with risk – but at least you know you don’t have a solution without a problem.

Braden Kemp
Bioenterprise Corporation
 

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Would your company still operate if you fired yourself?

Posted on August 30 2012 | Author: Admin

Take a look at your business. If you fired yourself right now, would your company still operate as normal? Have you created systems in your company that allow you to remove yourself from the equation and still have a fully functional business?

Notice that the key word here is operate.

A business that operates on its own not only gives you more free time to do what you want (lifestyle business), but it also allows you to focus on growing the company.

Furthermore, a self-operating business positions an entrepreneur to grow the company intelligently - instead of hiring more people because there’s too much work to do, an entrepreneur can hire more people when it’s time to scale.

These are the steps I take to remove myself from the equation.

Step 1: Dive in head first

Do not build systems until you’ve done the work yourself. Managing a project is completely different from executing on the project as there are always unexpected obstacles along the way of completing a task. It’s therefore important to dive head first into the task before you build systems. While you do the work, make sure to write down the mistakes you make and the shortcuts you find along the way. I just use a simple Text Editor to write down all my notes as I complete a task.

Step 2: Create the training manual

There are two types of training manuals that I create depending on the situation:

Written training manual delivered via Google Docs
Video training guide hosted on my company FTP

Written training manual

I utilize Google Docs to create a written training manual. I make sure to go into extreme detail with every step needed to accomplish the task. I organize the training by colors:

Red-highlighted section: warning, there is a common mistake here that you should pay attention to avoid
Green-highlighted section: shortcut to accomplish a task
Blue-highlighted section: immediate next steps for the reader

I utilized Jing to take screen captures of my screen and make the training manual idiot-proof. That’s actually a very important part of building a training manual:

Create a training manual as if you were creating it for a child. Be completely thorough in your training and never leave room for different interpretations.

Video training guide

I utilize Camtasia to video record my screen for a training guide. Similar to a written training manual, I make sure that the video is idiot-proof. Furthermore, my goal is to minimize the length of the training manual as much as possible. I delete unnecessarily long pauses while I’m waiting for a web page to load so that the viewer doesn’t have to sit their idly during training. My video training is fast-paced and forces the viewer to keep engaged or else they’ll miss something important.
Centralized location for the training manuals and guides

I utilize a simple Google Group to host all of my training manuals. A Google Group has a Welcome Page that allows you to write any text to welcome a member. I use the Welcome Page to organize all of the training manuals and make it easily accessible for all employees.

Step 3: Test and revise the training manual

Test the training manual with the team member that will spearhead this project. Watch as they accomplish the task using the training manual WITHOUT any of your help. Take notes and see where they have questions, where they slow down, and where they make mistakes. These are areas in the training manual that need clarification.

Step 4: Observe closely then forget about it

I hate to micromanage, but that’s what it takes during the first few times the team member accomplishes the new task. If the results are not 100% to your liking, then you need to figure out how you can improve your training manual so that you can get the results you need. Often times it’s as simple as speaking with the team member and asking why they made a mistake.

Once the results are 100% to your liking, then it’s time to forget about it and move on to growing your company.

By Jun Loayza from www.junloayza.com

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.

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How to Sell Your Ideas

Posted on July 23 2012 | Author: Admin

You've got all your employees excited about your vision. Now, it's time to convince the rest of the world.

To make a difference in your company and your market, you have to get others to accept and promote your ideas. You’re already a leader in your company. The next step is to become a leader in your niche--to use your ideas to influence an entire market, and to help your vision of the future take hold.

Subscribe to the VRE formula for success: Begin with a well-tested and honed Vision, accumulate a track record of Executing successfully, and then get out of the office to build the right Relationships and share your ideas. Here’s how to begin.

Vision: Getting Out There

Just as you test products before bringing them to market, you need to test your ideas before trying to become an evangelist for them. So try explaining the kernel of your big idea to appropriate stakeholders to get their input. Once you’re confident that you can get others to understand and accept your basic idea, try reframing it so that it tells a bigger story that engages others.

The next step is to find speaking opportunities that will let you champion your vision. There is an aura of trust around the person on the dais or behind the microphone. That’s earned by having something meaningful and memorable to say. Without that invitation to speak outside of our organization, we often don’t take the time to gather the evidence and anecdotes that give us credibility and help convert others to our point of view.

Relationships: Why Conferences and Boards Matter

Identifying and nurturing relationships--with investors, advisers, and potential employees--will allow you to spread your ideas much more quickly.

Attending conferences and serving on boards are great ways to test and refine your vision, and to meet the people who can make it happen. Start by thinking about the people you want to learn from or influence. Then split them into A and B lists, and identify the people on the A list whom you most need to meet within the next three years. Which events do the A players attend, and which boards are they a part of? Who can help you get the right invitations to those opportunities?

Execution: Your Track Record

People will remember you and come to rely on you if you do what you say you will do. That’s enough to put you ahead of the pack in pretty much every situation.

That does not mean you have to do everything yourself or work 24/7. Sure, it’s easy to think, "Oh, I can do this faster (or better) than anyone else." Before you know it, it’s 1 a.m. Again. So make the most of virtual assistants, crowdsourcing, online cloud services, and the creation of a "do not do" list.

Deadline: One Year

Create a one-page plan, now, that will help you stay focused on the right opportunities to build visibility, credibility, and reputation this year.

By Denise Brosseau via www.inc.com

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.
 

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Start a Green Business

Posted on June 18 2012 | Author: Admin

Make money and be earth-friendly with a green products business.

Even Wal-Mart sells organic cotton T-shirts these days, but you definitely don't have to be a retailing behemoth to take your business in a green or organic direction. In fact, entrepreneurs have an advantage when it comes to reaching customers who care about the cause as well as the products.

• Seek your niche. There are enough areas of open opportunity in green products that, chances are, you can find one that both fits your skills and a needed niche. "Find a way to express your own passion to others," says Dr. Samsom. Areas like cleaning supplies and cosmetics are natural fits for green products, but don't be afraid to look past the obvious.
• Be an example. "Show you believe in your product by changing other aspects of your life and business to support your own commitment to the earth-friendly lifestyle," says Raffino. This can include making green decisions when it comes to your suppliers and even your personal life. Make a point to recycle and check into using solar or wind power for your business. A green attitude overall will reflect well on your business.
• Educate. Green products customers are just as hungry for knowledge as they are for organic foods. "Understand the significance of your product and how it benefits the earth or conserves resources, know everything about it," says Raffino. If you've done your research, you can more effectively communicate the value of your product to your customers.
• Your customers are your best marketers. Green products is an area that can be heavily driven by word-of-mouth and by happy customers passing on their experiences to other people. "Get your customers to be your best promoters," says Samsom.
• Find colleagues who are on the same page. When it comes to employees, management staff and investors, you need to find people who share your passion. Colleagues that share your cause will be more invested in helping your business to blossom. It's not just about making money, it's also about making a difference in the world around you, one green product at a time.

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The 6 Huge Hiring Mistakes Everyone Makes

Posted on May 24 2012 | Author: Admin

You need a top-notch team to do your best work--but you need to hire them first. Here's half a dozen common ways managers shoot themselves in the human-resources foot.

If you can recruit people who are talented, brilliant, natural leaders, it can make all the difference to your organization’s success--and your sanity as a leader. There is nothing that improves your chance of success more than having a strong, trusted team.

But even with the best intentions, you can choose badly. Particularly if you get really excited about a candidate and hire for the wrong reasons.

Here are six mistakes--some of which I've also made myself--that executives make when their misplaced enthusiasm for a candidate causes a superficial, rushed, and ultimately bad hiring decision.

1. Admire a past accomplishment too much
Very often a candidate will have an accomplishment in their past that is truly extraordinary. It’s more impressive than anything you’ve ever done and vastly overshadows the accomplishments of the other candidates. Wow! You’re Hired!

Don’t: Hire the candidate based on this one grand accomplishment alone.
Don’t: Assume this breakthrough will be repeated for you!
Do: Make sure they are ahead of the pack on many of the other hiring needs too.
Do: Make sure to get them to talk about how they will think, learn about, and do the specific things you need now--don’t assume brilliant success on the prior thing will automatically translate to brilliant success on what you need done.

Make sure you will love them just as much for other reasons---for the mainstream work they will do and for their personal contribution to your team. Don’t just hope for a repeat home run.

2. Put too much stock in advanced degrees
I know plenty of people with advanced degrees who are highly effective business leaders, but I know as many who are not. Advanced degrees alone are not proof of future business success. They are only proof that the person is capable of getting advanced degrees.

Don’t: Say “Wow, look at all those masters and PhDs--you must (by definition) be better than all the other candidates that don’t have all those impressive degrees”.
Do: Get them to talk about examples of what and how they have done the kind of things you need done.
Do: Get them to give examples of how they personally conceived of and led business change, growth, or transformation.

3. Too much experience
One of my first hires was a telemarketing guy who had 22 years of experience being a telemarketing guy. I was so impressed! Oops.

Don’t: Hire someone only because they have a huge amount of experience in the thing you need done. Remember, they might have so much experience in that job because they were never talented enough to get promoted. If you are hiring a deep expert you may be okay, but if you are hiring a leader be suspicious. You are always better off judging and hiring for smarts and future capability than past experience--because the problems and opportunities are always changing.
Do: Look for advancement on a resume over experience. Judge the person’s ability to solve problems, learn, grow, and lead others, not just how much experience they have.

4. Fall in love with the person
Okay, when after the interview you want to go out for drinks with the person even more than you want to work with them, make sure you are not mistaking how much you like the person as a potential friend, with making the right hiring decision.

Don’t: Make this decision by yourself. You’re in love. You are not thinking clearly.
Do: Get others’ help validating the person’s capabilities and fit for the job.

5. A great talker
Particularly in the case of sales and marketing people, remember these people are experts in selling. So they are selling themselves in their interview.

Don’t: Get so mesmerized by a great pitch that you think the person is a star.
Do: Press extra hard on examples of their success. Look for proof points that were unambiguously accomplishments of theirs alone, and check their ability to explain them at a significant level of depth.
Do: Ask them to describe a mistake or a failure they have overcome. A truly great candidate will always be enthusiastic to share a big lesson. A big talker will always resist showing any chip in the armor--or will give you an overly polished answer.

6. Failure to check references
This seems so obvious, but for all the rose-colored reasons listed above, I have seen executives not bother, or get too busy, or need to move too fast to check references. Then they get surprised and burned. In all the cases above, add to the DO list: check references!

A reference check adds a reality check to balance the things you fell in love with during the interviewprocess.

Don’t: Ever not check references. If you skip this, don’t be surprised if you get surprised!
Do: Always also check back channel references, not just the ones they give you.

The tricky part is that when you get a star sitting across the table from you, you indeed get pretty excited. And you get the feeling that it is a competitive situation so you will need to move quickly. Just remember, there are people who are not true stars who can get you as excited as the ones who are. Move quickly, but always dig deeper, and always check references.

Source: Patty Azzarello via Fast Company: Expert Perspective

Image: Flickr user Jes

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.
 

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Crossing the Death Valley

Posted on April 25 2012 | Author: Tom Dowler

R&D...&C

A previous blog by John Pickard gave a great summary of options, or lack thereof at times, for public funding into the Commercialization phase of development. That is the phase at the end of R&D, “Phase C”, which is traditionally known as the death valley many companies must cross prior to bringing their products to market.

At this time it may not be easy to find public funding programs to share some cost with you and your partners in the de-risking of your business. However, there are some steps during R&D before Commercialization (“C”) that are absolutely critical to give your company a good shot at achieving funding for pilot, demonstration, or market test phases. These are generally the phases which prove to investors, funders or customers that your product does in fact work in a commercial setting, and that it can generate revenues. The steps that you can take now should be directed towards being able to demonstrate the following:

1. Is the product unique or does it work equal to, or better than, current competitive products?

This seems like an obvious question but it is one that often is not contemplated soon enough. What targets in terms of efficacy, properties, or specifications are paramount in the industry you are entering with your product? These targets need to be achieved for the product to succeed. There are times when it is easy to get caught up in the excitement of a new technology and lose sight of the specifications that are essential to entering the market.

2. Price/Cost - Can the product be sold at a final price point that is competitive with existing products and/or the perceived advantage generated by your product?

If you are not able to demonstrate the ability to eventually produce at a reasonable cost and earn a margin, it will be challenging to reach the end of the “death valley” stage to the point where you can attract investors. If you can’t sell the product, you can’t generate an ROI for potential investors, and we all know where that leaves you - another great idea orphaned.

Contract pilot plants across Canada with expertise working with agricultural feedstocks can help you identify production issues, scale up risks, and help predict future costs. Some of these centres include:

• Foodtech Canada (member locations across Canada including POS, FDC, BioFoodTech and GFTC)
• Composites Innovation Centre (Winnipeg)
• Agriculture and Agrifood Canada sites including Laval, Qc, and Leduc, Alberta
• Local universities and colleges

3. Will you be able to protect the market you achieve once you have commercialized?

This includes protection of intellectual property, control of an important feedstock required to produce your product, or the strength of your brand. From the idea phase, all the way through to the commercialization phase, it is important that you understand how you will protect the market advantage you have created with your product. Appropriate timing for protection is also an important concept to understand over the course of your company’s R&D&C cycle. Demonstrating the ability to maintain the market advantage you have carved out will quell the concerns of public funders, and eventually investors, who are considering backing a small entity with limited resources. Sometimes, partnering with a large industry player you may currently view as a threat, may be the best way to protect your market, brand and IP.

Ag-oriented public funding programs are becoming increasingly competitive, as the number of programs has recently been shrinking, despite the growing number of innovative new companies entering this space. It will be important that you have considered and can explain the numerous risks involved in “Phase C” to funders, and how your R&D plan has mitigated these risks from day one.

Here at Bioenterprise, we can help you with identifying and addressing many of these areas. Why not give us a call?

Tom Dowler
Senior Business Analyst

 

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9th Annual World Congress

Posted on March 21 2012 | Author: Admin

Bioenterprise, along with OAFT and Soy 20/20 will be sponsoring the World Congress on Biotechnology and Bioprocessing in Orlando, Florida this year!

This is the largest industrial biotechnology event gathering together business leaders, investors and policy makers in biofuels, biobased products, and renewable chemicals.

If you missed it last year, check out the video below. Hope to see you there!

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.

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Do YOU Exist in the Google-sphere?

Posted on March 12 2012 | Author: Braden Kemp

Why Your Start-up Needs an Online Presence

Critical mass –The minimum required to start or maintain a venture: "a critical mass of users".

Generating critical mass is an integral part of launching a business venture. You want people talking about your start-up before it even starts up. This will increase awareness and ensure you stay afloat during that key period when you transition from an idea to a bona fide business. At this point you likely can’t afford that witty Super Bowl ad, but modern marketing tools allow you to reach an incredibly large and diverse audience at a very low cost. There are a million reasons why existing on the Internet is a must, but here are just a few:

1. Start a conversation with your target market – don’t guess what they want, ask them!

Social networks like Twitter and Facebook are providing companies with a very unique opportunity, and the best part is it’s free. By building a presence on Twitter and Facebook you can develop a relationship with your customer base, and engage them in conversation.

Let your audience know what you’re doing; keep your idea in their minds as you engage in the commercialization process and you might find that they provide valuable input on key features or services they would like to see. This is the one of the biggest advantages of today’s marketing tools; rather than blasting a message to the masses in hopes they understand, you can actually interact with your target market and be sure they understand.

2. Important people need to know what you do.

Like most ventures you will probably need some extra cash to get off the ground, and unless you happen to have a rich uncle (read: John Pickard’s "6 Things Every Entrepreneur Should Know") you are going to have to ask potential investors for a large sum of their money.

Here’s the thing – investors like their money and they don’t give it away without performing some serious due-diligence on your operation. Here at Bioenterprise, we perform a ton of due-diligence on prospect companies and if your investor is anything like us, Moneybags is going straight to Google to search your company name. Give it a try – do you exist on Google? No? You should.

I’m not suggesting you hire an IT firm to design a $50K webpage, in fact even a simple landing page that describes who you are and what problem you are solving can do the trick. If key individuals who can influence the success of your organization see that you are actively developing a brand and engaging your target market, they just might be more likely to dedicate time, and perhaps money, to help you get started.

Whether a venture capital firm is considering a $10 million investment or a potential customer heard about you through the grapevine, they will inevitably turn to the web to check you out. When they do, you better be there or you could be missing out on some great opportunities. Make use of the free platforms that are available and get out there and start a conversation!

Remember – this is free marketing, and when was the last time you got something for free? Taking advantage of the options available to you online will help to build and define your brand, and that’s an important part of any business small or large. Speaking of branding, I have some thoughts on that too – stay tuned.

Braden Kemp
Junior Business Analyst, Bioenterprise

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10 Employee Engagement Actions for Managers

Posted on March 05 2012 | Author: Admin

The Employee Engagement Pyramid

Recently on his blog, Winnipeg consultant David Zinger has been detailing 10 steps to employee engagement, which he has shaped into what he calls the employee engagement pyramid, explaining the building blocks for success:

1. Achieve results

At the top of the pyramid is the main target: getting employees involved in formulating the results that the company should be seeking, and then having them be intent on achieving those agreed-to results. “Powerful results matter to managers, organizations, employees, and customers,” Mr. Zinger notes.

2. Mark progress

The Progress Principle by Teresa Amabile and Steve Kramer, published last year, presented fascinating research that indicated the key to motivation and engagement for knowledge work is making progress each day at work. Managers therefore need to structure work so that progress is visible (and do their best to prevent setbacks).

3. Maximize performance

Managers need to figure out how to make top performance worthy of employees’ attention and provide feedback that is heard and heeded by those employees.

4. Foster recognition

Management needs to show employees that their accomplishments are appreciated. “Authentic recognition is so much more than an annual gala or occasional gift card for good behaviour. Recognition is social, strategic, and powerful,” Mr. Zinger says.

5. Build relationships

Work is social. Research by Harvard Business School professor emeritus John Kotter found that one of the factors that distinguished general managers with consistently outstanding performance records from their counterparts was their ability to develop and maintain a strong network of relationships. Gallup’s famed questionnaire on engagement has several questions about the strength of relationships at work with colleagues and supervisors.

6. Enliven energy

Energy drives us. It comes in many forms including physical, emotional, and mental. Mr. Zinger also cites the importance of spiritual energy; that is, being caught up in a mission that is greater than ourselves.

7. Leverage strengths

Research is consistently showing the importance of bringing out the strengths of employees to energize them, rather than harping on weaknesses.

8. Make meaning

If managers can make the work meaningful, it will engage, sustain and enrich people.

9. Master moments

Doug Conant, former chief executive officer of Campbell Soup Co., used what he called TouchPoints to transform the dismal engagement scores at his company, and to make the most of the times that managers interact with employees.
“Engagement resides in the moments,” Mr. Zinger observes. “Each of the many connections you make has the potential to become a high point or a low point in someone’s day.”

10. Enhance well-being

As a manager, you must eliminate the toxic aspects of your workplace. Employees must be allowed to find a sense of well-being at their work so they leave each day enlivened, rather than depleted.
 

Source: David Zinger Employee Engagement via The Globe & Mail: Report on Business

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.

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Public funding: R&D is not the end game

Posted on February 27 2012 | Author: John Pickard

Had I only known when I was planning my last entrepreneurial venture about the extent of public funding that was available for start-ups. God bless the federal, provincial and municipal governments that have dug deep and provided grants and loans to enable companies to clear some technology hurdles or develop a prototype to test their technology in the real world.

There is no end to the programs offered by IRAP, SR&ED, or NRC, most of which are geared toward early stages of technology. These programs seek to answer the unanswered questions about how something might work…or how it might not. All very much needed, I would say. However, the real sweat comes when the innovator knows that the technology does work and has application to solve real world problems. That is when the public funding dries up.

Acme Inc. has already spent 4 years validating their technology, developing a brand, and courting customers. Maybe they already have a production facility, are revenue positive, and are looking to expand their market. That is precisely where the dollar crunch comes. The government funds don’t apply, angel money is not enough, venture capital is non-existent, and it’s too early for private equity. Oh, and need I mention, banks are not in the risk business by the way. The company dies on the vine because no one wants to fund that emerging stage.

It’s time for government funding programs to trim their funding of “wish-list” concepts, technologies and companies and devote some of that trimming to invest in ventures that have made the grade.

A great example is Ontario’s Emerging Technology Fund (OEFT) that “matches” private investment on a dollar for dollar basis. The government enters and exits on the same terms as the private investor. Canadian business needs more of this kind of thinking… government dollars following private investors, dollars following technologies and businesses that are beyond R&D and into real business.

Promoting R&D is great, but investing in real companies with real technology and real customers is the end game.

John Pickard
Entrepreneur in Residence, Bioenterprise
 

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Receive Money Back when You Apply for the CETC tax!

Posted on February 06 2012 | Author: Christina Lippa

Oh the joys of the hiring process! I’m sure managers must jump at the opportunity to hire a new employee, because who wouldn’t want to read piles and piles of cover letters and resumes, or sit through endless hours of interviews, sounds appealing doesn’t it?

If you are one of these managers who dislike the burden of recruiting new employees, you should definitely consider hiring a co-op. University or college institutions typically set up the hiring process, which means your work is cut in half. All you need to do is provide a concise job description and decide what degree programs you feel will adequately qualify for the demands of the position. This will help to filter out the types, and amount, of students who apply to the jobs, ultimately simplifying the hiring process. Now just sit back, and wait for the applications! Institutions will also assist in securing time slots for the interview process, according to your convenience.

Seems pretty simple now, right?

‘CHA CHINGGGG!,’ there goes that sound in the back of your mind…will you be able to afford the costs of hiring a new employee? Have no fear, the Co-operative Education Tax Credit (CETC) is here... if you a hire a co-op student, that is.

The Ontario Ministry of Revenue has introduced the CETC, which benefits employers who hire students enrolled in a co-operative education program at post-secondary institutions across Ontario. Simply put, you can receive up to $3000 in tax credits!

Is hiring a co-op student sounding better to you yet?... Still not convinced?

In addition to our eagerness to learn and apply our academics to the real world, co-op students may choose to recognize your company as an ‘outstanding employer.’ This could grant you the opportunity to win awards such as “Co-op Employer of the Year” (depending on the institution). I’m sure Bioenterprise Corporation can definitely vouch for truth in this statement, as recipient of this award in 2010 from the University of Guelph.

Start contacting post-secondary institutions near you, to see if your organization can benefit from this great opportunity, and be amazed by our student potential!

Christina Lippa
Marketing and Communications Assistant, Bioenterprise

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Novel Businesses Require Novel Funding

Posted on January 30 2012 | Author: John Pickard

Noted below is a link to an IndieGoGo site for Nicole’s Farm. IndieGoGo is a social capital and "crowdfunding" site for novel, start-up companies. Bioenterprise is currently working with Nicole Huska, founder of Nicole’s Farm, to assist her in proving the business model.

Nicole’s Farm is a pioneer in the development of Small Plot Intensive farms (SPIN) in the Sunshine Coast of BC. Nicole’s plan is to identify 1 acre plots that are currently un-used by landowners and to negotiate a lease of the land for the farming of produce. This land could be a homeowner's back yard or a hydro right-of-way, etc. Nicole's Farm would negotiate the land lease, and prepare the property (fencing, ground prep, irrigation, etc.). Furthermore, they would identify and contract farming staff to tend to the seeding, nurturing, and harvesting of the produce (this staff may be the land owner, but not necessarily). Nicole's Farm would make arrangements with local retailers, restaurants, markets, and food service agencies for the purchase of the produce. Nicole sees this as a franchise model. Each 1-acre farm is forecast to produce $100K in revenue per year through deep bed, no till, multiple crops, and sustainable agriculture practices. $50K is margin after the 1st year costs set-up are absorbed. The proceeds go to the landowner, the farming staff, and to Nicole’s Farm to recover the costs of set-up and management. This is a novel way for Canadians to grow, sell and eat local.

Beyond Nicole’s concept, I think the funding model is intriguing. Much like making charitable contributions to micro-businesses in the 3rd world aimed at getting entrepreneurs their start, IndiGoGo introduces a similar strategy….many “random” partners supporting a business concept that they identify with.

Now, for clarity……I’m not soliciting funds for Nicole. I just find her concept and the IndiGoGo model novel and worth chatting about. A new model for farming combined with grass roots Venture Capital.

I encourage you to visit the Nicole’s Farm and to educate yourself on “crowdfunding”.

John Pickard
Entrepreneur in Residence, Bioenterprise
 

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Importance of having a registered office address

Posted on November 28 2011 | Author: Emily Prange

Business success is largely about building consumer loyalty; and consumer loyalty lies in the ability to identify with a company that communicates trust and confidence. Having a physical office space for your company defines your company image, and helps establish a stronger corporate brand.

Most start-ups don't have the funds available to rent or purchase commercial real estate. Being cost effective is important, but compromising quality to save a buck will only hurt your bottom line in the long run. Here's why...

In today's world, working from a home office is often stigmatized. Consumers often get the idea that a home-based business isn't a substantial one.

While starting out in a home office is one thing, consider that having a registered office address gives a persona of professionalism and success before tossing the idea of obtaining an office space on the backburner. Working in a community environment also increases drive and creativity, which often lacks in a home office.

So what can you do if you can't afford an office rental but want to give your business a more professional approach?

Co-working:
Co-working is typically less expensive than traditional office space. It can be a good first step out of a home office for many. Wikipedia defines co-working as a “social gathering of a group of people, who are still working independently, but who share values, and who are interested in the synergy that can happen from working with talented people in the same space.” Do an online search of "co-working in xxxx", xxxx being your city, and you'll find websites that list various co-working facilities, such as Co-Working Toronto.

Office space by the hour:
The concept of renting a meeting room for an hour or a day is catching on with start-ups and entrepreneurs. The services usually provide a business address, mail service and 24/7 access to office space on a pay-per-use basis. It's a variable cost as opposed to a fixed cost of thousands a month on a lease.

There are solutions out there to give your start-up or home-based business a professional edge, and taking full advantage of them will help your business reach new potentials.

Emily Prange
Marketing and Events Assistant, Bioenterprise

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Pondering Intellectual Property

Posted on November 24 2011 | Author: Tom Dowler

Intellectual property (IP) often forms a strong foundation for technology companies. And that it should, given the millions of dollars of R&D that build the foundation behind technology and product development for bio-economy based companies. However, along with the value that patent filings and trade secrets may bring to your company, you must also be aware of the inherent risks and expenses brought about by your IP protection strategy.

Patenting is by far the strongest method of protecting your technology from being legally duplicated on the market in the countries you file. In short, a patent is an exchange between an inventor or their legal representation and the public. The owner of the patent exchanges the knowledge of the valuable intellectual property they have conceived and reduced to practice in exchange for the right to solely manufacture and sell it in that country for the term of the patent.

The competitive advantage that your patent provides may be the most valuable edge you have in the market over your competitors.  However, with this strong statutory protection for your IP comes unavoidable cost.

When asked in the past, I’ve estimated the MINIMUM cost of having a patent issued in the US alone at $20-30K. However, depending on the complexity of the technology and pre-existing knowledge in the area, you may be looking at much higher costs when all is said and done. Based on a quick scan of the opinions of others with experience in IP protection, the cost of filing to issuance of a patent could be anything from $10K-100K. That is quite the range to prepare for.

So, the take home is that patent filing may be integral to your business strategy, but it is not cheap, and these costs need to be accounted for when forecasting costs your business will face.

A patent may be a strong mechanism of protection, but a trade secret may get you to where you want to go without giving up knowledge of your intellectual property to your competitors. Foregoing the need to file a patent also allows you to direct your business dollars to other activities. However, this means your “special sauce” must be kept a secret through non-disclosure agreements and management of information, which comes at a cost as well. The question that needs to be asked when considering whether IP should be kept a trade secret is “Can my idea or product be reverse engineered?”… that is, will the competition be able to understand the intellectual property from the product you sell and use it for their commercial benefit?

When deciding on your IP protection strategy, you also need to take into account other factors such as barriers to market entry, whether the benefits to your company are worth the costs of patenting, and regions the IP may be useful for either manufacture or sale of product.

To determine the best IP strategy for your company, it is certainly worth working out the pros and cons of each with a trained professional. Having an introductory conversation with a patent agent with a strong knowledge in the technology and market your products will enter into is a very good investment.

Tom Dowler
Senior Business Analyst, Bioenterprise

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The Importance of Communication

Posted on November 22 2011 | Author: Laura Millson

"Keep in Touch"...

It’s a phrase we use loosely but an important invitation in both our business and personal relationships.

Communication can bring opportunity, connection and success to entrepreneurs who stay connected to sources such as Bioenterprise, which has a vast and varied network of resources.

I have come in contact with many entrepreneurs here. Some have sent a brief email inquiry or arrived in person for establishing meetings. Others are contracted clients who have moved on.

“Keep in Touch” is just that: an open invitation to communicate with us and stay connected to Bioenterprise by sharing updates, changes and developments, media coverage, product development, or design changes or just letting us know how you are doing. This is news we like to hear and would like to promote.

We have recently redesigned our website (bioenterprise.ca) and incorporated social networking tools that will allow us to tell your story to a greater network. The benefit to you, of course, is the greater awareness of your innovative company. So stay in touch. Your success is our success, and we are here to help you.

Stay in touch. Stay networked.

Laura Millson
Entrepreneur Services and Office Operations Coordinator, Bioenterprise

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Cash Flow

Posted on November 09 2011 | Author: John Pickard

...the only thing that counts.

I learned about cash flow the hard way, as most do. The good news is that it wasn’t by writing cheques on my business account and then realizing that there wasn’t any money there. I wrote my first business plan completely and on my own using an online template. The template walked me through revenue calculations, expense calculations and forced me to research employee benefit costs and payroll taxes. When all was inputted into the template, the magic happened and out came a ream of documents including the P&L, Balance Sheet and Cash Flow statement. The beauty of the template was that it gave monthly cash flows for 3 years out based on my projections.

As a non-financial manager, I was glad to have all of this data, but I really only understood the P&L as I had created all of the inputs myself. However, biz plan in hand, I marched off to BDC to see what they thought about lending me some money for my venture. The meeting was short. The first question that I was asked was “how much money do you need”. After an awkward pause, I said that I didn’t really know. Within minutes I was back on the highway headed for home. That meeting became my wake-up call. It forced me to come to terms with my financial data. Back I went to the template and began to play with it. I soon learned that if I tweaked revenues and expenses, then my cash flow situation improved or declined with each tweak. I also realized that my biz plan showed months where cash flow was negative and I’d effectively be out of business without ready access to loans or investment at the right time. A bit more figuring helped me realize the exact month(s) that my business would need a cash injection and how much that injection needed to be for me to stay solvent. Furthermore, I was able to calculate the cost of the projected cash injections in terms of interest, etc. Low and behold this all affected the Balance Sheet. I was seeing how it all came together.

Having seen a few hundred entrepreneurs in the past 3 years, I find the component most often missing is financial awareness. If the entrepreneur is not trained as a financial manager, then the financial piece of their business plan is usually a few paragraphs of text and a basic Excel spreadsheet showing “hockey stick” revenue coming right out of the gate. As I so directly learned, this is a sign of a failure in the making.

If you need help with your financials invest in good business plan software (make sure it is relevant to the Canadian market) or check these links out:

1. http://www.bplans.com/business_calculators/
    
2. http://www.bdc.ca/en/advice_centre/tools/business_plan/Pages/default.aspx
    
3. http://www.fileguru.com/downloads/cash_flow

My key learning was that nothing is more important than cash flow. I said NOTHING! Learn how your revenues and expenses relate to one another and how they drive the financial documents necessary for your business. If that task is beyond you, invest in a professional who can produce, understand and explain the financials to you. Make that person a part of your team. Treat that person well.

John Pickard
Entrepreneur in Residence, Bioenterprise

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Networking 101 ? Building Relationships for Growth

Posted on October 28 2011 | Author: Victoria Lennox

Networking is the key to success in business according to Keith Ferrazzi, business coach and author of Never Eat Alone, a book about the power of relationship building and networking. Networking helps you find jobs, recruit talent, win new customers and discover investors who will support your ideas. With the right approach, you can build lasting relationships. Here are some tips to become a master networker:

1. Do your homework – If possible, get your hands on the attendee list before the event and identify a handful of people you want to meet. Look up their profiles on Google and LinkedIn and learn about their background to determine the best way to approach them.
2. Prepare your pitch – Create a 15-second verbal business card that you can use when you are introducing yourself to people. It should be clear and concise. Who are you? What is your company? What are your goals? What is it that you want from these new relationships that you are developing?
3. Set goals – How many people do you want to talk to and who in particular?
4. Be yourself – Keep in mind that networking is about being genuine and authentic, building trust and relationships, and seeing how you can help others.
5. Use body language – A firm handshake with eye contact is crucial because people intuit a great deal from that first brief exchange. Maintaining open body language by never crossing your arms is important.
6. Be an ambassador – Act as a host, not a guest. Introduce yourself to those standing alone and ask if they would like to meet others.
7. Listen and ask questions – We have two ears and one mouth, so use them proportionally. When you listen, really listen. Have meaningful conversations with the people that you meet and ask open-ended questions.
8. Be generous – Networkers believe in “givers’ gain” — that by helping someone, you both benefit. Your approach to networking should be completely selfless. Give referrals wherever possible. In doing so, you will become a helpful resource for others and people will remember to turn to you for suggestions, ideas and information. This keeps you visible to them. Always be thinking how you can help the person you are talking to. Your network isn’t about what you can gain from it, but what you have to offer it. So make yourself available, approachable and knowledgeable.
9. Trade business cards – Be sure to exchange business cards and write notes on the backs of cards you collect to remind yourself of what you discussed and any commitments that you made that you will need to follow up on.
10. Manage your time effectively – Spend no more than 10 minutes with each person, and don’t linger with friends and associates.
11. Follow up, quickly! – You will have wasted your time if you do not follow up right away. Follow up by email and refer to something of significance from your conversation. Be sure to also deliver on any referrals or connections that you have committed to. 
12. Connect via social media – After meeting, also add your new contacts to your LinkedIn community and follow them on Twitter.
13. Meet one-on-one – To further build the relationship, you may ask to arrange a call or to meet in person one-on-one.
14. Keep in touch – Once you have a new relationship, you have to nurture and cultivate it. Keep in touch so that it can grow.

What not to do

1. No selling! Networking events are not meant to be a vehicle to get people to buy your products or services; they are about connecting and building relationships – a beginning, not an end. You are looking to develop a long-term relationship, not a short-term sale.
2. No spamming

Every person you meet has the potential to drastically change your life, so when networking, lay it all out and see what comes of it. Networking is not about exchanging business cards; it is about building relationships. As a network builder, network building is to me like developing new friendships. I listen, offer help, care about their goals and enjoy their company, and everything else falls into place.

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.
 

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10 Reasons to Start Up in Canada, eh?

Posted on October 12 2011 | Author: Victoria Lennox

Here are some reasons to Start Up in Canada:

Whether you are looking to start a business or have already turned a profit, as entrepreneurs, you are always looking for new opportunities. Sometimes the grass may seem greener on the other side. But why venture south when Canada is the place to be?

1. We Are Home to the World. Not only are Canadians diverse global citizens that come from all parts of the world, but we also attract the brightest newcomers. In a world where connectivity is king, Canada’s diversity lends itself to global business opportunities of all sorts – from importing, exporting and leveraging global business models to discovering new innovations and working with others from different cultures to give life to new ideas – our diversity is our strength.
    
2. We’re Connected. Nearly 27 million Canadians are connected to the Internet. Of those, nearly 60% are actively using social networks. This means that we work with global teams and run global businesses at our fingertips. You don’t need to be based in Silicon Valley to be a successful entrepreneur. Success is not a place, and it is a small world.
    
3. We’ve Got Smarts. Canada is one of the world’s best-educated nations in the world with exceptional talent ready for you to hire. New programs pop up all the time to encourage academic-industry relations, which can give your company a competitive edge by working with the best and brightest.
    
4. Canada Loves Its Entrepreneurs. Canadian entrepreneurs are well respected for the impact that they make in creating jobs, strengthening communities and fuelling the economy. Increasingly, they are being celebrated and recognized for their contribution.
    
5. Lots of Support! There are thousands of small business associations, networks and organizations that provide networking, learning and support across the country that are just itching to help you start and grow your business – so you need not be alone.
    
6. Government Gets It. All levels of government in Canada understand that small businesses are the engines of Canada’s economy, so they provide programs, services and tax incentives to ensure that Canada’s entrepreneurs have a running start. While there will forever be new ways to improve government support for entrepreneurs, Canada remains one of the easiest countries in the world in which to start up and do business.
    
7. Talent and Innovators Galore. Great Canadian entrepreneurs give life to remarkable companies – e.g. RIM, Bombardier, LuluLemon, Holt Renfrew, Chapters, McCain Foods and Tim Horton’s. We develop world-class technologies, produce inspiring creative works, and create scientific solutions to global problems – and that’s just with 34 million of us floating around.
    
8. The Beautiful Land. From Niagara Falls, Banff and the Prairies to the Atlantic Coast and the Territories, we’ve got natural beauty and space to spread out. You need only drive out of the city to see untouched sites and do the unwinding that all entrepreneurs need.
    
9. Standard of Living. For eight years in a row, the United Nations has ranked Canada as one of the best places to live in the world. Canada enjoys one of the highest standards of living in the world, a safe environment and a modern health care system.
    
10. And of course, our sense of humour, our beer and our bacon – to get us through the rollercoaster we go through as entrepreneurs. 

The Agri-Technology Commercialization Centre receives funding under the Growing Forward suite of programming, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.

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ONE Network

Posted on October 03 2011 | Author: John Pickard

Ok….so one of my previous blogs was on the theme of “One”….the One Man Band in the business world. This post is also on the theme of “ONE”. A bit different though.

Bioenterprise is a newly minted member of ONE (The Ontario Network of Excellence). This is the Ontario Ministry of Research and Innovation’s effort to bring new technologies to the forefront faster, and with better success rates than in the past.

So what is ONE? Essentially it is a number of agencies (about 25) scattered across the province that are set up specifically to assist entrepreneurs in getting their businesses up and running. Staffed by those who have “been there, done that”, the member agencies in ONE assist entrepreneurs as they pull the pieces of the business together and get their product or service into the marketplace.

You might assume our offices are populated with knowledgeable, government employees; the employees who work here (while knowledgeable) are in fact commercialization experts. These are real, live, business people who have the battle scars to prove it. Many have been wildly successful and some have crashed and burned. All bring valuable experience to your business.

The member agencies of ONE are fairly diverse, not just geographically (from Windsor to Thunder Bay and many stops in between) but rather, in terms of their expertise. First, there are the RICs (I wouldn’t be a new program without an easy to remember acronym) otherwise known as Regional Innovation Centres. These are one-stop locations for entrepreneurs of all stripes: Hi-tech, Pharma, Medical Devices, Cleantech, Bioeconomy, Food, Social Enterprise, Media, and so on. Whatever your business passion, the RICs can assist. Most are staffed with experienced entrepreneurs and bolstered by tech nerds, researchers, academics, and business mentors from all over. They combine to help build business strategies, business plans, financial models, IP, legal, marketing, HR, operations ….all the parts of a functioning business. The entrepreneur does most of the heavy lifting, but the advisors and mentors are there to steer the project and to help the entrepreneur avoid the pitfalls of starting and ramping up a new business.

And then of course there are the SIC’s. Sector Innovation Centres. Bioenterprise is a SIC covering the Agriculture and Ag-Bio space. Others include: Ontario BioAuto Council (Bio based Materials and Manufacturing), Bloom (formerly OCETA/ a.k.a. the cleantech gurus), Green Centre Canada (Green Chemistry), Coral-CEA (Software Technology), HTX (Health Tech Exchange) and a few others that concentrate on sector specific issues.

For the most part, there is no charge to access these resources. If there are costs, they are modest - affordable for a business in start-up mode. I suggest that if you are thinking about starting a business or are already underway in an early stage venture that you look up ONE and engage. The network can speed up your progress, help you avoid mistakes, and bring a powerful bunch of resources and expertise to your endeavour. Check ONE out.

If you have any experience with ONE, let me know how it’s going. 

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6 Things Every Entrepreneur Should Know

Posted on September 26 2011 | Author: John Pickard

Every once in a while an entrepreneur will ask me, “What is the most important thing I need to know?”. My stock answer is always the same. “Your rich Uncle’s phone number.” Yes, I know, I’m the Chris Rock of the business world.

Over the years, I’ve assembled a bit of a list of “The Most Important Things” you need to know to succeed with your business. The entire Wikipedia of my learning. Usually the hard way. Here goes:

1. Business Plan. This is boring, I know. But it’s essential to take the time to write one. My first one took me about 3 months. I used a software template and this worked great because every page of it spawned a new question that I hadn’t really thought about in the context of my business. The Plan gets ideas out of our head. It lets you share your vision with the rest of your team. Investors will want demand to see it. Write it yourself.
    
2. Bankroll. At Bioenterprise we see about 100 entrepreneurs each year. A good percentage of them are broke. They may have lost their job and decide that starting a business is the way out. This is not the time to start a business. It costs money to do a start up. Many entrepreneurs think that the government will fund their start-up. Not so. Government funding can help with certain aspects (usually the R&D), but they won’t pay for your equipment, rent and other assets. Banks are not in the risk business. They loan money against some hard assets that you are willing to put up…like your house. They don’t lend unsecured money to a business with no revenue. Set a limit as to how much of your own money you can put into a business. Once it’s gone, you should re-evaluate your plan.
    
3. Cash Flow is the lifeblood of your company. If you are a non-financial manager, find someone who can teach you about cash flow and how to recognize when your company needs more cash (loan or investment). Projecting your cash flow as a start up will tell you how much money you will need to get your company to profitability, and when you will need it.
    
4. Find a first customer. You can do this early in your planning stages. Talking to a potential First Customer can help you see what is important to them. It teaches you how to serve them. It focuses your business…FAST. A customer forces you to complete all the parts of your business. You need to figure out customer service, accounting, legal, and distribution in order to write and ship that first order. Oh, and by the way, the best way to finance your start up is through revenue from sales. A customer is the key trigger for investors.
    
5. Find a critic. No, I don’t mean your spouse. I mean someone who’s been there. Successfully. Someone who is independent. A good critic (aka Mentor) will network you to partners, help you avoid the potholes and tell you when to quit or not to quit.
    
6. Don’t do it alone. This is a lesson I noted in my One Man Band blog of a while back. Build a team. Add the expertise you don’t bring. Find Strategic Partners who might be customers, suppliers, or distributors. Somebody with interests that parallel yours. Lastly, a financial partner is the best partner to bring along for the ride.

So there you have it. The contents of the best seller I was going to write…all in one page. Consider yourself advised.
 

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Why There Are No Successful One Man Bands

Posted on September 20 2011 | Author: John Pickard

As a child, I can remember watching the Ed Sullivan Show on Sunday night. It was what you did on Sunday night back in the day. About once a month they would have a One Man Band take the stage and play some contraption consisting of a large drum, cymbals, a harmonica, and a xylophone…..all at once. The “musician” would play the drum using a series of levers attached to a drum stick that he controlled with his foot. The cymbals would be strapped between his knees and he “clapped” his knees together to….well…. make a noise. All the while his right hand flailed at the xylophone. Of course his mouth was busy with the harmonica. It was more comedy than music and that was the intention. A novelty act.

I sometimes wonder what happened to the One Man Bands. Well, they died. And to be blunt, they died because they sucked. One person couldn’t do what four or five accomplished musicians could do… each a master of his or her own instrument.

I learned the lesson of the One Man Band during my first adventure as an entrepreneur in the telecom world. Having had a successful experience as the #2 guy in a very similar business, I thought that I had all of the parts to reproduce the start-up, early stage and exit surrounding my proposed venture. I wrote the business plan, cobbled all of the pieces of my technology together, arranged production of prototypes and sample product, secured telecom network access, worked on package design, and started the search for real money to take the venture forward.

However, I had no team around me. Despite the fact that I had most of the pieces assembled, no investor was going to take a chance on a “One Man Band”. Experienced investors realize that no individual can play all of the instruments (at the same time) well enough to be successful. What happens if the One Man Band falls off the stage and breaks a leg? …No more cymbals and no more drums. And in business? …Well, no more business.

The logic applies to having a management team around you. They might not be full-time, or even on the payroll. However, they are people that can play a role in Marketing or Finance or Operations once the company “takes the stage”. Get professionals who you trust, and work well with, involved in your venture. This support team will play the roles that you can’t, or shouldn’t. You will get better ideas and better quality of execution with specialists on the team.

The “team” might also consist of strategic partners as well. Customers, suppliers or distributors that know something about a piece of your business and are willing to support you (likely because they can see what’s in it for them down the road). They bring stability, experience and resources to the enterprise and will re-assure everyone that you are serious and that someone other than you believes in the success of your endeavour.

Once you have a strong team, take them with you to those investor meetings or sales calls to assure those who you are selling to that you are not a One Man Band, in fact, you have an entourage.

Got your own One Man Band comment? Let’s hear it.
 

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Consumer Research on a Dime

Posted on September 13 2011 | Author: Crystal Sarantoulias

What you need to know.

Knowing who it is you are targeting in terms of their age, gender, household income, and education can be a starting point to understanding who your customers are. There is, however, other practical consumer information that can be collected that can be invaluable in making business decisions.
So how do you go about getting this type of information?
The simple answer is … ask your customers!

The key to conducting effective consumer research is to keep track of your customers. With their name and phone number or email address, one way to carry out consumer research is to conduct a survey to get at some key insight that can only come from your consumers themselves. This contact information can be collected at the point of checkout or by online product registration.

Surveys can be conducted in person, over the phone or via mail or email, each of which requires a different amount of effort, time and money. Survey host sites such as SurveyMonkey.com are often inexpensive and easy to use.

Telephone interviews are more time-consuming and resource-intensive. However, there is benefit to speaking to someone, as there is opportunity to deviate from the interview guide and get at some insight that would not have otherwise been uncovered in an electronic survey. Hiring summer or cooperative education students is a great, inexpensive way to get some of this type of research done.

The first step in designing a survey is listing everything you would love to know or your objectives for engaging in consumer research. These objectives can relate to the strengths/ weaknesses of the product or service itself, effective marketing outlets, price points … the list goes on. From here, it is best to design questions that are open-ended in nature, where your customers are required to respond with more than “yes” or “no” answers. Next, it is important to test your questions on a few customers to ensure that you are getting the type of information you are looking for.
Now what? You’ve collected this information, but what’s next?

Once the surveys have been completed, the information can be reviewed for common responses and suggestions for improvement. As a new company, you may be trying to figure out what your selling proposition, or “secret sauce,” is with your consumers. Research can provide insight into the perceived value of your product or service and allow you to better develop and execute effective marketing strategies with this in mind.
It is important to remember:

• Not every customer will be willing to take the time to provide you with feedback on your product or service – and that’s okay!
• Both negative and positive feedback is valuable as it can be used as the basis for moving forward in your business.
• Think about what it is you want to learn before jumping into consumer research and avoid these common mistakes.
  http://sbinformation.about.com/od/marketresearch/a/marketresearch.htm

Crystal Sarantoulias
Market Research Analyst and Independant Consultant

crystal.sarantoulias@gmail.com

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Why Knowing Your Consumer is an Investment Worth Making

Posted on September 12 2011 | Author: Crystal Sarantoulias

As we’ve learned from my last post, getting to know your customers is one of the greatest challenges facing business owners, especially when starting out with a product or service that consumers are not familiar with.

Collecting information about your consumers, or conducting consumer research, can however be one of the single most effective uses of your time and marketing resources.

So what is consumer research?

Consumer research is a look into what is really driving consumer behaviour and decision making (http://www.ehow.com/about_5057780_consumer-research.html).

Why is consumer research so important?

As a business owner, knowing your consumer saves you money, helps you make informed business decisions, equips you to identify new opportunities before the competition, and minimizes your business risks. Here’s how you go about conducting your own research:

1. Identify your demographic. Understand who it is that is using your product or service. It can help you get feedback on your product. Both positive and negative insight is critical to further product or service development. True intelligence is most valuable when coming from the end user themselves.
2. Invest your marketing dollars strategically. Marketing is only effective if it is reaching the right audience – by understanding which outlets are popular among your target consumer group, your marketing dollars can be strategically invested in targeted messaging that your customers can relate to.
3. Determine how to best communicate with your customers directly. For example, if your customers are mainly using email and online networks as a primary form of communication – spending money on a mail out campaign is not the most effective way to reach your audience. On the other hand, it may be an effective way to get new customers.

Knowing your consumers can shed light on the real value proposition or benefit of your product or service. This gives you strong insight when targeting your marketing efforts. For example, if your product or service helps your customers save time and money, then perhaps you could showcase an online testimonial section on your website where consumers can share their experiences.

Without understanding the value in your product from a consumer perspective, marketing strategies are a shot in the dark.
 

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

crystal.sarantoulias@gmail.com

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Trying to Stretch your Marketing Dollars?

Posted on September 07 2011 | Author: Crystal Sarantoulias

Why your consumers can be your best marketing investment.

Gaining consumer trust can be a difficult task for brand managers. With loads of deception and washed out marketing techniques, consumers today are second-guessing everything they read and see.

So how do you gain their trust?

You need marketing strategies and tactics that really hit home for your consumers. You want your consumers or prospective consumers to feel comfortable and relate to the problem, or unmet need, that your product or service is addressing in the market.

An effective way to do this is to use “champions” or testimonials that will tell your story for you.

A testimonial is essentially a hyped-up reference or recommendation given by a real customer. They give this reference by sharing their personal experience with your product or service. This is important because consumers can relate to other consumers, well, better than they can relate to the perceived, profit-oriented business owner or paid actor/actress.

If your product or service really does provide a benefit to consumers (one should hope!), then have your champion tell their story about their experience with the product.

For example, if your product or service helps consumers save money, then the most effective way to demonstrate to prospective customers that it works is to have them share exactly how much money it helped them save over a period of time or season.

Now, should you offer your champion some sort of incentive? That is up to you. In the case of a subscription product for example – you could offer them a 6 month or 12 month subscription for free. The idea here is that the champion is freely giving their testimonial, and is speaking from personal experience. In other words, they should not be convinced to participate by way of an incentive.

So how do you go about putting together a testimonial?

First, you need to identify that champion. This could be a customer that often compliments your product or service or someone that has taken the time to personally discuss their experience with you.

Secondly, you need to have them agree to share their experience with you. Testimonials can be written or verbal. Either way is effective, as you can easily offer to write the piece from an interview with the champion or record a video of the testimonial. The key to credibility is to always include a picture in the written pieces to make it more personable as well as have the customer sign the piece with their first name.

Finally, post your testimonial where ever you can, including: on your website, in your retail space, on your business cards – anywhere your customers will see it.

For more tips and tricks to getting and using testimonials effectively, check out: http://www.understandingmarketing.com/2010/03/25/new-rules-of-testimonials-in-small-business-marketing/

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

crystal.sarantoulias@gmail.com

Other References:
http://www.understandingmarketing.com/2010/03/25/new-rules-of-testimonials-in-small-business-marketing/
http://www.copyblogger.com/testimonials/
http://www.radialgroup.com/documents/testimonials.htm
http://secondwindconsultants.com/2008/07/28/testimonials-are-critically-important-here-is-how-to-do-it/

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The Perceived Link Between Price and Quality...

Posted on September 06 2011 | Author: Crystal Sarantoulias

What’s really going on in your consumers’ minds?

From a functionality perspective, there is a clear difference between the quality of one product versus another. What’s not so straight forward is how consumers perceive the quality of a product and more specifically, the relationship between price and quality.
So, how do consumers relate price and quality to value in their decision regarding a product and service? This notion is actually far more complicated than you would initially think.

Although it is common for consumers to assume that the most expensive version of a product is the best quality, there are other factors that are influencing this perception.

While quality can be broadly defined as excellence or superiority, perceived quality has a significantly different meaning. It can be fairly abstract as opposed to focused on a particular attribute, and it can be related to the consumers’ attitude or judgement.
Essentially, the perceived value of a product or service really depends on what the consumer expects to receive in terms of benefits versus what they are going to pay. It’s a trade-off. 

What consumers are willing to pay for your product and what they expect in terms of features is ultimately what entrepreneurs and business owners should try and understand in order to effectively meet their consumers’ needs.

The first step is understanding that there is a perceived relationship between price and quality. The second step is trying to determine the product or service features that consumers value – this will shed light on what’s going on in the minds of consumers and can be very beneficial in determining an appropriate price point. Pricing too high and not delivering quality, as well as pricing too low and leaving an impression of poor quality, can both be detrimental to sales. 

As you can see in this article from the Globe and Mail, perceived consumer value can also help to determine when and if it is appropriate to raise your prices. 

It is important to keep in mind that there’re always going to be customers who think your product quality is terrible, but there will also be those that are extremely happy with the quality of your product. It’s about finding a balance between these two groups – this is your target consumer group. Your marketing campaigns, sales and promotions should be targeting these individuals, the features they value and a level of quality that is worth the price you are charging. 

When making these business decisions, remember to always think as a consumer. Recall a time when you are contemplating between 3 products that essentially do the same thing – a shower head for example – are you more likely to select the $29, $59 or $99 dollar product? What do you look for? What features indicate quality to you? Your customers are thinking the same way when contemplating the purchase of your product.

Crystal Sarantoulias
Market Research Analyst and Independent Consultant

Crystal.sarantoulias@gmail.com
 

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