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Five to Help You Thrive: The Five Critical Business Relationships Every Entrepreneur Must Nurture
Building a successful business means nurturing those relationships you create along the way. Here are five relationships that should get most of your attention to ensure your business is a great success.
By Ty Freyvogel
You've probably heard it said that entrepreneurs are "married to their work." It's true. Running a company requires amazing quantities of time, energy, and devotion. But there is one big difference: while matrimony is all about maintaining a healthy relationship with another person, being married to a business is all about maintaining healthy (and profitable!) relationships with several groups of people. In fact, there are five main relationships that small business owners must nurture: relationships with customers, employees, vendors, bankers, and mentors.
Smart entrepreneurs never forget their own success is intertwined with a complex network of other people and organizations. All of those relationships must be constantly tended and nurtured. Even though your interaction with each of these five groups will be different, your reason for creating positive relationships with them will be the samebuilding a successful business.
Entrepreneurs, here are the five most critical relationships to focus on . . . and why your efforts with these people and organizations can make or break your business:
Customers. Of course, any business owner wants his customers to be happy. But you need to ask yourself, Am I really going that extra mile to ensure that my customers have the ultimate positive experience? Particularly if you're a small business owner, your customers are your bread and butter. Not only do you want them to be so happy with your service that they come back, you also want them to go tell someone else that they loved the experience they had with your business. Learn as much as you can about your customers, so that when their needs change, you can be the one to provide them with the new services they neednot one of your competitors! Constantly ask them, "How can we continue to provide value for your company?" They'll appreciate your efforts to help them be as successful as possible. Always treat them with the utmost respect and do everything in your power to make them happy. That may mean anything from throwing them the occasional discount that's "especially for them" to remembering their kids' birthdays. Take care of all of the little things and not only will your customers be coming back, but they'll be bringing their friends along.
Employees. The importance of seeking out the most dedicated, honest, and passionate employees you can find can't be stressed enough. After all, you have to trust these people to serve your customers, protect your brand, and help your company grow. When you have found the best employees for your business, do everything in your power to hold onto them. Your employees are the face of your organization when you aren't there. So they must feel like they have a stake in the business. Encourage a sense of ownership among your employees. There's no better way to keep them happy than by giving them the recognition they deserve. Have one-on-one conversations with each of your employees on a regular basis to let them share their problems with you and to give you a chance to recognize their good work. Make sure you find out which jobs within the organization they are the most passionate about and put the right people in those positions. Remember, passion equates to hard work! Nurturing your employees to love your business as much as you do will strengthen your company's foundationand your business will be that much more likely to survive setbacks and grow to great heights.
Vendors. It's important to nurture relationships with those people who aren't necessarily working for you but who service you or your company regularly. This can mean anyone from the package delivery guy who stops by every day to the materials supplier who keeps your warehouse stocked to the designer who keeps your website updated. Think of your vendors as "honorary employees." Show them that you appreciate what they do for you and also that you care about them and their companies. Get their email addresses and cell phone numbers and stay in touch with them. You never know when an emergency might arise in which you could use their help. Your company may not always grow 10 percent a year, and you may have to ask for an extra 30 to 60 days to make your payment. If you already have a good relationship with them, they will be more willing to give you extra time and to work with you to get back on track. Never treat them like they are serving you. Always acknowledge when they have gone above and beyond the call of duty to make you happy. It's also important that you make sure your vendors are getting as much value out of their relationship with you as you are with them.
Bankers. At the beginning of your venture, it's likely that you will require a start-up loan of some kind. Therefore, the best way to nurture your banker is to make sure you always have enough money in your account to make your monthly loan payments on time. With my businesses, I always made sure I had some emergency cash saved up to use in case I had a rough month. You don't want to gain a reputation with your bank as someone who doesn't make loan payments on time. Staying close to your bankers can also help you secure your finances. Make sure you set up a safety system with them to ensure that all of your deposits are going through on time. I once had a manager who was embezzling money from one of my businesses. I had a close relationship with my bank and the bank manager noticed that something wasn't adding up with my account. He called me to let me know and we were able to set up the necessary precautions with them to ensure that no one was ever able to embezzle from me again. Thanks to my close relationship with him, I was able to correct a problem before it became even more costly for me.
Mentors. It's great to have someone to go to when you are first starting your own business and when you run into problems along the way once it is up and running. Find a successful fellow entrepreneur whom you respect and ask her to be your mentor. Always show her the respect she deserves and let her know you are thankful for her help. It's also a great idea to put your mentor on your business's advisory board. It's likely that your mentor will have many connections in many different areas. You want to have a close relationship with her so that she is willing to go that extra mile to help you build your business. Don't contact your mentor only when you have a problem. Regularly contact her even if it is just to give her an update on how things are going. You never know, she might tell you about a contact that could help you in a certain aspect of your business, for instance, or tell you where she sees a hang up. Always send a thank you note after she's done something to help youit's a small gesture that has a big impact.
The bottom line: no matter how determined, hardworking, and talented you may be, you simply can't be a successful entrepreneur all by yourself. It takes a village to run a company. Never forgetting that fact is critical to your success.
Always be on the lookout for ways to show these key players that you want to be their favorite business owner. Make sure they are getting as much out of the relationship as you are. Show them you care. Creating and nurturing these positive relationships will make being an entrepreneur a hugely rewarding experience. The more people who care about you and your business, the more successful you're going to be.
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Canada Revenue Agency: Minden Tavern Owner and his Corporation fined $70,000 for Tax Evasion
LINDSAY - David Willis of Minden, Ontario, and 649510 Ontario Limited, operating as Rockcliffe Tavern, pleaded guilty to one count each of income tax evasion, in the Ontario Provincial Court on March 29, 2007. Mr. Willis was fined $60,000, and 649510 Ontario Limited was fined $10,000.
A Canada Revenue Agency (CRA) investigation revealed that Mr. Willis, owner of 649510 Ontario Limited, operating as Rockcliffe Tavern, understated the corporation's taxable income by more than $120,000 in the taxation years 1998 to 2002. Furthermore, Mr. Willis failed to report in excess of $80,000 of rental income and interest income he earned from private loans and mortgages during the same period. Finally, the CRA investigation determined that Mr. Willis was using corporate funds for his personal benefit, vacations and recreational vehicles, and failed to report the income on his personal income tax returns.
"When individuals or corporations are convicted of tax evasion, they have to pay the full amount of tax owing, plus interest, and any penalties the CRA assesses" said Mr. Miklos, Assistant Director of Enforcement for the local tax services offices. In cases of gross negligence, the Income Tax Act and Excise Tax Act allow the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years.
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CRA criminal investigators given badges
OTTAWA - The Canada Revenue Agency (CRA) has issued identification badges to its investigators. The badge and accompanying identification card will serve as official identification only. CRA investigators' roles and powers will remain the same, as will the duties they perform.
The badges are a result of adjustments the CRA has made to its policies
and procedures following a ruling made by the Supreme Court of Canada in the
Jarvis and Ling decisions that CRA investigators could not rely on the same
administrative powers as auditors to gather evidence for purposes of criminal
investigations. While audits and investigations are both serious matters, an
investigation can lead to a criminal charge. The badges will allow the public
to easily distinguish between an auditor and a criminal investigator. This is
consistent with the CRA's commitment to transparency.
The CRA takes any incident of deliberate abuse of Canada's tax laws very
seriously. In 2005-2006, 252 income tax and Goods and Services Tax/Harmonized
Sales Tax (GST/HST) investigations were referred for possible criminal
prosecution. These referrals along with those from previous years resulted in
293 convictions in 2005-2006 with the Courts imposing $14.4 million in fines
and sentenced offenders to a combined total of 33 years in prison.
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Small business confidence makes solid gain in first quarter of 2007
TORONTO - The latest Business Barometer by the Canadian Federation of Independent Business (CFIB) shows a solid gain in confidence within Canada's small and mid-size business sector. The CFIB Business Barometer Index now stands at 108.7 (1988=100), up from 107.0 in December. "This brings the index back up into its historic mid-range - which corresponds with a sustainable 2.5 to 3.0 per cent growth rate in Canada's GDP," said CFIB's chief economist, Ted Mallett.
Mallett said overall, about 35 per cent of owners say their firms are
doing much or slightly better than one year ago, while 27 per cent say they
are doing somewhat or much worse. At the same time, about 44 per cent of
respondents expect stronger performance during the next three months, while
only 16 per cent expect a weakening. The longer-term expectations for the next
12 months are the most positive, with 51 per cent of respondents expecting
stronger performance, versus only 14 per cent expecting a weaker year ahead.
Looking across the country, Mallett said businesses in British Columbia
and Alberta continue to be the most optimistic, and it appears some of that
confidence has spread to the adjacent prairie provinces, as the index for both
Manitoba and Saskatchewan are up. Businesses in Nova Scotia, and New Brunswick
also continue to show strong index growth, although it is worth noting that
the majority of responses were received before New Brunswick brought down its
budget, which contained significant tax increases for small corporations.
Business optimism in Ontario and Quebec has stabilized after gradually losing
steam over the past few years. The index in PEI fell slightly but is not far
off its average so far this decade, while businesses in Newfoundland and
Labrador are less optimistic. Their index dropped for the second consecutive
quarter.
Mallett also noted that the index's sector detail reveals that
differences among industries are shrinking. "The industrial profile across the
country does not reveal any clearly lagging sectors - a sign of broad-based
stability."
The increase in overall performance expectations is matched with a
corresponding rise in hiring plans, according to Mallett. Almost 32 per cent
of business owners expect to increase full-time employment in the next
12 months - more than a point above December's mark. Construction businesses,
manufacturing, wholesale and business services firms are the most likely to
increase staffing levels during the year ahead.
When asked about factors affecting their businesses, Mallett said on the
positive side, more businesses report improving customer demand than declines.
Wage demands and labour availability are still a concern, but not to the same
extent as the previous quarter, while concerns related to energy prices are
back up, largely because of the latest spike in gasoline prices at the pump.
To a lesser extent, other input costs are also cited by businesses as a reason
for weakness in business conditions and concerns about insurance availability
and cost linger, but not nearly to the same degree as in the past couple of
years.
"While the results are positive, it is fair to say the small business
economy is not yet running at full capacity, the way it was earlier this
decade," Mallett concluded. "Recent announcements at the Federal level to
encourage capital investment, reduce red tape and enhance capital gains rules
are all welcome developments, but the economic spark that would come from
other more stimulative government policy options, such as broad-based tax
cuts, remains elusive."
The survey was conducted via fax and e-mail between March 6 and 17, 2007
and drew 1,920 responses.
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Engineering services industry 2005
Growing at a faster pace than the economy, the engineering services industry posted a double-digit revenue growth rate in 2005, building on a rebound that started in 2004 after a couple of sluggish years. Business investments, particularly in Western Canada due to the surging resource sector, were a major factor contributing to this strong expansion.
Engineering firms recorded operating revenues of $13.8 billion in 2005. This translates to year-over-year growth of 13.6% compared to 10.0% the previous year. Part of the industry's revenue growth can be attributed to higher fees, as reflected in the consulting engineering services price index which rose by 3.9% in 2005.
The continuing upturn boosted the industry's operating profit margin to 13.6%, compared with 11.6% in 2004.
In recent years, the industry's activities have shifted somewhat from Ontario to Alberta. The industry's revenues grew by 21% in Alberta. Meanwhile, firms in Ontario, unable to sustain their growth of 2004, reverted to their lacklustre performance seen in recent years by recording a modest revenue gain of 2%. Alberta was not the only Western province in which engineering service firms expanded rapidly. Firms in Saskatchewan (+38%) and British Columbia (+27%) far outpaced the national average in 2005.
Despite small growth, engineering service firms operating in Ontario earned 30% of the industry's 2005 revenues in Canada. Other significant market shares were recorded in Alberta (26%), Quebec (22%) and British Columbia (14%).
The engineering services industry is somewhat concentrated, with the 20 largest firms generating 35% of operating revenues. Nonetheless, the significance of small and medium enterprises in this industry should not be underestimated.
Although large firms (work force of 250 or more) earned 40% of the industry's operating revenues, small firms (work force of less than 50) and medium firms (work force of 50 to 249) accounted for 37% and 23% of the industry's revenues respectively.
In 2005, while operating revenues earned by the large firms grew at about the same rate as the overall industry, the growth rate of medium firms (22%) exceeded that of small firms (9%).
In terms of engineering revenues by type of project, the largest revenue source was petroleum and petrochemicals (18%), followed by buildings and structures (14%), transportation (9%), and municipal utilities (7%). Engineering services accounted for 79% of industry operating revenues, with the remainder mostly generated in related fields such as construction services, project management, and environmental consulting services.
Nearly 57% of industry revenues were earned from business sector contracts (6% of which were subcontracts from other engineering firms) with another 25% coming from public sector clients. Spending by households and individuals accounted for only 2% of the industry's revenues.
Continued growth of foreign fee income along with growth in the domestic market, allowed the export intensity of the industry to hold steady at 15% of operating revenues. The United States remained the largest foreign market, absorbing half of the industry's total exports.
Salaries, wages and benefits increased by 12% and were the largest single expense item, accounting for almost half of operating expenses. This ratio has been consistent in recent years. Salaries and wages exclude the renumeration of owners of unincorporated businesses as well as the dividends of the working owners.
The number of salaried personnel employed by the industry increased by more than 8% to 88,500. It should be noted that non-salaried business-owners are not included in employment numbers. Close to three-quarters of the work force are professionals including engineers, technicians, technologists, and other professionals.
In 2005, the number of engineering establishments increased by 1,000 to 21,700. Small firms accounted for 95% of the establishment count. Three-quarters of the small firms were non-employer partnerships or sole proprietors.
The industry's contribution to Canada's gross domestic product in current dollars was just shy of $8 billion in 2005, accounting for 0.6% of the overall economy.
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Dear CFIB Member,
It has been an exciting week at CFIB as all of the hard work on
some key member issues resulted in some very positive outcomes - the
defeat of Bill C-257 (An Act to ban replacement workers), an
increase in the $500,000 Lifetime Capital Gains Exemption (LCGE)
to $750,000, and a concrete plan to reduce federal government paper
burden by 20 per cent by the end of 2008. These outcomes were only
achieved because so many thousands of CFIB members gave their support
to these campaigns and let their voice be heard.
Monday's federal budget brought two major victories that federal
Finance Minister Jim Flaherty, in his budget speech, credited CFIB with leading.
The increase in the LCGE to $750,000 is a direct result of the
more than 30,000 Action Alerts from members to their respective MPs.
Copies of those 30,000 Action Alerts were also sent to the Finance Minister
resulting in the first increase in the LCGE in 20 years!
For more than two years, CFIB has been persistently pushing for a plan
to reduce government paper burden. In Monday's budget the government announced
a plan to reduce government paper burden on business by 20 per cent. Key
government departments will be obligated to inventory all the requirements
they impose on business by the end of this year, and reduce that amount by
20 per cent by the end of 2008. CFIB will be a key player in ensuring that
this happens.
There were many other small business friendly measures in the budget, such
as enhancements in the capital cost allowances for computers, buildings and
manufacturers; an increase in the eligible age for RRSP contributions to age
71; personal income tax reductions for families; and a major down payment on
the debt. However, CFIB is concerned that there is a significant increase in
new spending in this budget so we will be watching the government's overall
spending closely to ensure that this trend does not continue.
On Wednesday, CFIB's campaign to defeat Bill C-257, launched just three months
ago, came to a third and final vote in the House of Commons. By then, more
than 10,000 members had expressed their concerns to their MPs through faxes,
emails and phone calls. Your input was critical as we were up against a
strong union lobby that mobilized union representatives from across Canada
to pressure government to pass this bill. By adding your voice, CFIB was able
to convince many MPs to change their vote and kill this bill. The defeat of
Bill C-257 is a testament to how the collective voice of Canada's small- and
medium-sized enterprises can change government policy. This is not only
a victory for independent business, this is a victory for Canada.
With so much to celebrate, we wanted to make sure that you knew that CFIB is
working for you, and achieving results. As always, please let me know if you
have any comments, questions or concerns.
Thank you for your continued support of CFIB. As this week has shown, it really
does make a difference.
Sincerely,
Catherine Swift
President & CEO
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Ontario Budget Fails Toronto Small Business
TORONTO - Lionel Miskin, TABIA Vice-President and Tax Committee Chair expressed disappointment that the Ontario Budget, once again, fails to address the dilemma of Toronto's small retailers. "While the government has recognized that the huge disparities in education tax rates across the province need to be addressed, the Budget proposal will have no significant effect on Toronto's small retailers for years to come," he states.
"The Provincial Government taxes Toronto's commercial property to the
hilt, with education levies that it uses elsewhere in the Province. This
overloads our membership, most of which is comprised of small retailers, with
tens of millions of dollars in property taxes. Ever since the Provincial
Government introduced Current Value Assessment, most of these retailers have
seen their property taxes increasing annually at rates which are double and
triple the inflation rate. Between the annual assessment increases, usually
five percent, plus the City's rate increases, one and a half percent, many of
these retailers are struggling to stay afloat.
"The provincial levy is hurting Toronto very badly," adds Mr. Miskin. "It
is contributing to the erosion of the City's commercial base, making it more
and more difficult for the City to raise the revenues it needs. The taxation
of Toronto businesses at rates well in excess of those in other parts of the
GTA is most counter-productive. It makes it harder for Toronto business to be
competitive, forcing a lot of commercial enterprise to leave the City. Those
who can't leave are called on to shoulder a rapidly increasing burden. All
across the City, prime commercial neighbourhoods are being replaced by street
townhouses and high-rise condominiums. By the time the full effect of the
budget proposal is realized, a lot more of Toronto's commercial neighbourhoods
will have deteriorated.
"Every neighbourhood needs a shopping district," says Miskin. "A healthy
shopping neighbourhood provides vital amenities to the surrounding residential
neighbourhood, enhances its value and enables people to shop with a minimum of
driving. And many of these neighbourhoods make a substantial contribution to
the quality of life in Toronto in other ways, with their street festivals and
special events. It is a narrow view to ignore this sector of Toronto's
economy."
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Federal Budget expands EDC Equity Program to help Canadian companies grow internationally
OTTAWA - New regulatory changes outlined in the 2007 federal budget will enhance Export Development Canada's (EDC) ability to invest in private equity and venture capital funds to help Canadian companies to expand and grow their business internationally, particularly in emerging markets.
"These changes offer greater flexibility for EDC to invest strategically
in international partnerships, creating more opportunities for Canadian
companies," said EDC President and CEO Eric Siegel. "We will be able to help
more small- and mid-market companies innovate, commercialize their business,
and go global as a result."
As part of its Global Commerce Strategy to ensure that Canadian
businesses can fully participate in global market opportunities, Canada's New
Government will introduce new regulatory amendments to remove the existing CAD
10 million limit on specific investments by EDC. The approval of the Minister
of International Trade and the Minister of Finance would be required should
EDC's stake in any single venture or fund exceed 25 per cent of aggregate
invested capital.
Since 1997, EDC has had a role in helping Canadian companies grow as a
direct venture capital investor, and as a limited partner in private funds.
EDC's Equity Program currently has CAD 140 million in investment commitments,
and that participation increasingly has been focused on emerging markets. Once
the regulatory changes take effect, EDC expects its equity program to grow to
CAD 750 million by 2010.
"To really take advantage of growth opportunities abroad, Canadian
companies need a wider range of services to increase their export-readiness,
acquire the know-how and make the connections they need with new partners,"
Mr. Siegel said. "This program is going to help some very promising Canadian
companies succeed in many of the world's hottest markets."
The EDC Equity Program focuses on two groups of companies: small- and
mid-sized companies that want to grow their business by going global, and
"next generation" exporters - those technology companies that were born global
by virtue of their product, but need to develop to grow. Both groups face gaps
in financing, networking and experience. EDC participation as a partner in
equity fund structures managed by experienced commercial players helps bridge
those gaps.
EDC's partnerships in its Equity Program connect Canadian companies to
international fund managers and their respective investor base, and help
companies integrate their activities with those of the funds. Growth of the
Equity Program's activities is expected from a greater focus on advanced and
clean technologies via venture capital, high-growth companies by way of
middle-market private equity, and the development of emerging market
investment strategies.
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CFIB response to the 2007 federal budget: big budget for small business
Canada - The federal budget provided some good news for Canada’s SMEs, announcing measures that will help them save time and invest for the future. CFIB was pleased to see government increase the lifetime capital gains exemption (LCGE) for small business from $500,000 to $750,000, give details of how they plan to reduce regulations and paper burden, make a major investment in debt reduction, and encourage new investment by enhancing capital cost allowances and other tax measures.
CFIB members had an impact as the government increased the $500,000 LCGE to $750,000 for small business, farmers and fishers, effective immediately. Minister Flaherty recognized CFIB as a leader on this measure in the budget address, which is a direct result of CFIB’s member campaign that produced more than 30,000 action alerts that were sent to MPS across Canada in the weeks prior to the budget. With seven out of ten business owners planning to exit their business over the next 10 years, this measure will go a long way in helping provide entrepreneurs with greater retirement security and will help facilitate investment in the next generation of entrepreneurs.
CFIB is particularly pleased that the government went beyond its commitment to reduce paper burden by 20 per cent, by outlining a plan and setting target dates to achieve this objective. The plan will require key government departments to inventory all their administrative and information requirements, similar to the BC model long advocated by CFIB. The budget also recognizes CFIB as a key player in helping the government achieve its 20 per cent paper burden reduction as co-chair of the Advisory Committee on Paper Burden Reduction.
As debt reduction remains an important priority for CFIB members, the government’s commitment to dedicate $9.2 billion of the $14.1 billion surplus towards debt reduction is welcome news, keeping it on track to reduce the debt-to-GDP ratio to 25 per cent by 2012-2013. However, CFIB is concerned that for every $1 in tax cuts, there is approx. $2 in new spending in this budget. While the growth in new spending is of concern, the introduction of an Expenditure Management System will help make sure that overall spending remains sustainable in the long term - something CFIB will be watching closely.
Other tax measures that will be welcomed by Canada’s SMEs include enhancements to various capital cost allowances, so that businesses can more quickly write-off their investments in computers and buildings; an increase in the age limit on contributions to RRSPs from 69 to 71 allowing entrepreneurs to continue to save for their retirement and encourage older workers to stay in the labour market; and changes to a variety of tax thresholds will make it less cumbersome for many SMEs to file their taxes. Other key budget measures that will impact our members are outlined in the attached document.
Finally, CFIB was very pleased to be recognized as a leader on two key measures by Finance Minister Flaherty in the budget speech,
“I would like to acknowledge the leadership of the Canadian Federation of Independent Business in championing this reform [increasing the $500,000 LCGE to $750,000], and the effort to reduce the business paper burden by 20 per cent.”
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Waterloo Region's Accelerator Centre nurtures Canada's next high-tech stars
WATERLOO - In less than a year, the Accelerator Centre at the Waterloo Research and Technology Park has laid the groundwork for some of Canada's high-tech stars of the future.
To mark its achievements in nurturing the early growth of high-technology firms, the AC will hold a celebration event this Thursday at its building on the University of Waterloo's north campus.
"It's been a very successful time since our launch last May. We're at 98-per-cent capacity and we have plans to expand," says Gerry Sullivan, AC's chief executive officer. "We provide start-up companies with access to industry experts who can help direct budding entrepreneurs through the process for launching a technology enterprise."
The event begins at 10 a.m. and will feature guest speakers, including MPP John Wilkinson, parliamentary assistant to Ontario's Ministry of Research and Innovation. As well, several start-up companies will display their products and services.
The AC seeks to commercialize the innovative work of researchers and entrepreneurs. It focuses on early-stage technology enterprise issues and promising technology companies.
Bobbi Holte, director of client programs, said there are 17 start-up high-tech companies currently based at the AC. "We have a total of more than 90 people who work here every day," she says.
As well, the AC works with innovation partners, including Communitech, Canadian Innovation Centre, Infusion Angels Innovation Centre (sponsored by Microsoft), Ontario Centres of Excellence and the National Research Council's Industrial Research Assistance Program.
As an example of the AC's work, Holte points to its successful mentorship program for client startup companies.
"In a recent case, a relatively young and inexperienced company approached the AC looking for admission into the program," she says. "Within 60 days, this company was admitted to the AC and hit the ground running."
A key mentor was assigned to the company to help with legal issues around transferring technology from a predecessor company. An advisory panel was assembled, including a successful entrepreneur and a senior technology executive. Two advisory panel meetings were held to address key strategy issues.
"Introductions were made to key players within the technology industry, including potential sources of future financing," Holte says. "All of this momentum was a direct result of the AC mentorship program."
The AC's entrepreneurship council is made up of business and technology leaders who will provide mentorship to client companies. The council offers experience in critical roles to growing an enterprise, such as financial management, investment, research and development, product development, marketing, sales and human resources.
Clients occupy one of 20 office suites in the AC's 22,700-square-foot building. Suites range in size from as small as 250 square feet to as large as 800 square feet and include Internet access and telephones. Suite fees pay for access to meeting rooms, reception, photocopying and administrative support. The building is covered by Canada's second-largest extensive green roof.
Typical clients will remain at the AC for one to three years and graduate when appropriate. They will either move into the Waterloo Research and Technology Park or remain within Waterloo Region. Ideally, they will maintain a connection to the AC, acting as a resource or mentor for the next generation of entrepreneurs.
The not-for-profit AC is the result of a multi-stakeholder partnership, with land and a portion of the initial operating funds provided by UW. The Government of Canada, Province of Ontario, Region of Waterloo and City of Waterloo provided the primary capital funding. Other stakeholders include the University of Guelph, Wilfrid Laurier University, Conestoga College and University of Waterloo. To learn more, visit www.acceleratorcentre.com
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Orangeville based student entrepreneur wins regional championship!
OTTAWA Advancing Canadian Entrepreneurship (ACE), celebrating their 20th Anniversary in 2007, is proud to announce the 2007 Regional Champions of the ACE Central Canada Regional Exposition that occurred in Ottawa at the Chateau Laurier last week on March 16. Student teams and student entrepreneurs competed for prestigious awards by showcasing their community projects and entrepreneurial ventures to a live panel of business professionals.
The 2007 ACE Central Canada Regional Exposition was an amazing event that brought together over 200 attendees including top students, faculty, alumni, business professionals and supporters from across Ontario and Quebec.
Three competitions took place during the annual event; one individual based competition, The Student Entrepreneur Competition as well as two team based competitions, Financial Education Challenge and Innovation Challenge.
Regional Champions of the Student Entrepreneur Competition are Daniel Warner, owner of UP Media Group Inc. and full time Seneca College post-graduate student as well as Kevin Downe, owner of Mind Over Math and full time student completing a double major at the University of Waterloo and Wilfrid Laurier University.
Regional Champions of the Financial Education Challenge are teams from Wilfrid Laurier University and Queen’s University.
Regional Champions of the Innovation Challenge are teams from Brock University and Queen’s University.
“Each year we are continually amazed at the caliber of the student teams and student entrepreneurs who compete in our Regional Exposition”, comments ACE President Amy Harder. “These are indeed the next generation of business leaders who are quickly moving ahead of their peers by putting their skills to the test while still attending university or college.”
Regional Champions will now move on to the next level of competition, the 2007 ACE National Exposition taking place in Toronto on May 7 to 9. Past National Expo judges include; Mario Pilozzi, President and Chief Executive Officer - Wal-Mart Canada Corp., Lindsay Gordon, President and Chief Executive Officer - HSBC Bank Canada, Chris Clark, Chief Executive Officer - PricewaterhouseCoopers LLP.
In celebration of ACE’s 20th Anniversary, an exclusive portal has been set up to provide timely information on events and activities taking place in 2007, as well as provide a forum to profile 20 stories of inspiration in the 20th year. Please check all 20 profiles from across Canada by visiting www.ace20.ca.
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Majority of Canadian private companies aiming to improve productivity
Toronto Over 84% of Canadian private companies are attempting to improve their productivity and include it as part of their business strategy. However, according to the latest PricewaterhouseCoopers (PwC) Business Insights Pulse Survey, only slightly more than half of them (56.1%) actually have metrics to track their performancethe most critical way to achieve results.
The PwC Survey also found that the smaller the company is, the less metrics they have and use to track productivitylikely due to lack of time, resources and dollars.
“It’s not rocket science. Basically there are two ways to improve performance. Make your people more productive or invest in technology and equipment,” says Eric Andrew, national leader for private company services with PwC. “It should be a permanent, active part of the organization at all levels.”
Interestingly, the PwC Pulse survey of 221 private company CEOs found that despite the widely reported fact that Canadian productivity lags behind the US, only 42.2% of Survey respondents are concerned about this gap. This drops to 35.4% for companies with annual revenues of less than $10 million. Regionally, BC respondents were the least concerned at 38.4%.
Andrew notes, “Regardless of people’s belief or not in a gap between productivity rates of the two countries it’s clearly in the interest of Canadian companies to strive for improvement in our increasingly competitive world.”
The following are themes that PwC sees as fundamental:
· Create a performance culture: The most successful organizations are those where performance is part of the culture, and where people from top to bottom are self-driven to achieve high-levels of performance.
· Focus on people effectiveness: Ultimately it all comes down to peopletheir capabilities and their effectiveness.
· Focus on revenue and innovation as well as cost: Top line growth is the real test of organizational healthcost cutting merely provides breathing room.
· Resource, manage and govern performance improvement initiatives properly: Don’t undertake a major change initiative if you can’t resource and manage it properly.
· Define and communicate objectives clearly, then empower people to do the job: Top-down direction with bottom-up execution enables bigger improvements that “stick”. The communication battle is never-ending.
· Implement a balanced performance measurement system: Measuring performance effectively is the basis for ongoing improvement.
· Be obsessive about sustainability: Sustainability is not just about being corporately responsible; it is about ensuring value for the long term.
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Antiques Shop leaps into 21st century
Green SPOT Antiques, a large antiques retailer/wholesaler in Cambridge, Ontario has leapt into the 21st century with a bang.
Cambridge - Applying marketing savvy, internet technology, delivery logistics, and a solid retailing concept Green Spot Antiques a division of TwoJJs, sells nationwide and worldwide using their company website, Ebay, phone and email.
"Our customer base has grown from Cambridge to now encompass a 200 km. radius including Toronto, Orangeville, Barrie, Hamilton, K/W, Guelph London, and all points in between.
By offering flat rate delivery to these areas we have been able to achieve a tremendous growth in our sales closures. We provide customers with "search services" and follow through with email containing pictures and prices. Buying decisions are made simple for our many specialist collectors, and they know that we are here to service their needs 24/7.
Recent sales to Ohio, Alberta, Ottawa, include bar billiards tables, setees, coffee tables and other large bulky items. Through Ebay sales and website sales we are able to service customers world-wide using standard postal services, or courier services as the need arises.
Advertising for us means investment in our website, as we hardly consider print advertising. The rapidity of changes in our stock does not easily fall within standard print venues. We are able to offer different weekly coupons online for our internet customers, a tactic which would not be cost-effective using print advertising, for example.
Website development has now been tracked to have supplied over 50% of our business walking into the building as well.
Mr. Jelenic, a partner in Green Spot Antiques, has put his knowledge of the internet and advertising to work for what would normally appear to be a non-related field. Melding the very OLD, with the very NEW has meant a change in the way an antiques business is run - a good change.
We plan to provide these and other services to our customers in the future, so they can shop for the items their hearts desire from the comfort of their own homes.
A bricks & mortar location functions as storage, display, a place for sales, a chit-chat about old stuff, and adds to the TRUST and Authority required to make a purchase of Antiques comfortable for the buyer.
"We look forwards to the future challenges in the business, many of which are being brought about by the rapid changes in technology itself."
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Institute urges Canadians and their leaders to turn up the volume in discussions of Canada’s widening prosperity gap with the United States
Institute for Competitiveness & Prosperity proposes an aggressive agenda for increasing Canada’s prosperity and argues that doing nothing is not a worthy option
Toronto Canadians need to step up to the challenge of closing our prosperity gap with the United States by 2020. With the likelihood of a federal and several provincial elections over the next 18 months, Canadians will have the opportunity to discuss and debate the importance of the prosperity gap and ways to narrow it. The Institute for Competitiveness & Prosperity in its Report on Canada 2007, Agenda for Canada’s prosperity, released today at the Conference on Canada’s Prosperity Challenge, proposes a prosperity agenda as a way of invigorating the debate.
Canada’s economy is one of the world’s most successful; and most signs low unemployment rates, solidly performing stock market, and a strong Canadian dollar reinforce this. But it is not meeting its full potential. More worrisome, two decades ago, Gross Domestic Product (GDP) per capita in Canada was only $3,300 (constant 2005 dollars) below or 10 percent behind that in the United States. Over the past two decades, we have drifted further behind US performance and Canada now trails the United States by $9,200 or 18 percent. GDP measures the value created by workers and firms in Canada from the human, physical, and natural resources in the country.
Roger Martin, Dean of the Joseph L. Rotman School of Management at the University of Toronto and Chairman of the Institute expressed the concern that, “Canada’s stealthily slow drift of under achievement could erode our economic strength, while most Canadians remain unaware of the problem.” With current trends in Canada’s economic performance, it is possible that the prosperity gap could nearly double to over $17,000 per capita by 2020. “That’s why doing nothing is not a worthy option,” said Martin.
On the positive side, Martin added, “Closing this prosperity gap would have real benefits for Canadian families.” On average, each family would gain $11,900 in disposable, after tax income every year. Governments across Canada would generate an additional $108 billion in revenue every year. This added revenue potential would easily pay for the kind of spending increases that are being proposed around the country and still leave room for the biggest tax cut in Canadian history by a wide margin.
The Institute’s Agenda for Canada’s prosperity highlights the significant changes required in attitudes, investment patterns, motivations to do business, and market and governance structures across the country.
As Martin said, “We are calling for a shifting of Canadians’ overall attitude from collective complacency to a shared determination to close the prosperity gap. If federal and provincial party platforms over the past few elections are any guide to public attitudes, it’s clear that issues related to our competitiveness, productivity, and prosperity are not seen as centrally important to the public. We need to raise the volume on these issues.”
Lagging investment is a major factor in the prosperity gap, and the Institute continues to urge a shift from consuming today’s resources to investing in future prosperity. Our business leaders need to increase their investment in machinery, equipment, and software, particularly information and communications technology (ICT). Our federal, provincial, and local governments have been increasing public spending on health care and social services at the expense of investments in education and infrastructure. We need to rebalance spending priorities. Individuals, especially the young, need to ensure they get as much education as possible. The report praised initiatives by some provinces to increase the age when students can quit school.
Our tax system needs to be smarter to motivate business entrepreneurship, creativity, and innovation. Canada has among the highest tax rate on business investment in the world. A smarter tax system would encourage more business investment to increase the number of high paying jobs in Canada. As Martin observed, “most other governments around the world understand that taxing business investment at high rates is just counter productive. Here in Canada we should shift from being laggards to innovators in tax reform.” Among the Institute’s recommendations are for provincial governments to eliminate immediately the tax on capital where it still exists; to convert the existing provincial sales tax systems where they still exist to a value added tax like the GST; and for the federal and provincial governments to work together to attack features of the tax and social benefit clawback system that impose punitive effective tax rates on lower income individuals and families working to climb the economic ladder.
Finally, the Institute makes recommendations to strengthen market and governance structures to enhance prosperity. “Our governments have done a good job in providing the basic support for a competitive economy including decent infrastructure and good primary and secondary education. But they need to enhance areas of more specialized support, especially to improve the quality of venture capital financing innovative firms and to graduate more students with business degrees.” The Institute also calls for reduced regulation of industries to enhance competitive pressure in them, thereby increasing innovation, productivity, and prosperity. In addition, it proposes more negotiations to develop bilateral trade deals to enhance market potential for our industries as well as providing greater competitive pressure to increase innovation and productivity.
Some of our current governance structures in Canada can inhibit productivity growth, and the Institute urges the federal and provincial governments to focus fiscal federalism discussions on how they can strengthen competitiveness and prosperity in all regions of Canada. Martin said, “We should be trying to make the pie bigger rather than debating how to divide the pie.”
The Institute makes specific recommendations in its 2020 Challenge:
Agenda for Canada’s prosperity.
Challenge 2020: Agenda for our prosperity
Attitudes: From collective complacency to shared determination to close the gap
-Recognize imperative for closing prosperity gap -Commit to taking the extra steps to increase our productivity and our capacity for innovation and upgrading
Investment: From consumption today to investment for tomorrow
-Increase investment in machinery and equipment, particularly information and communications technology -Encourage Canadian youth to invest in their educational attainment -Increase investment in post secondary education -Rebalance government spending away from consumption to investment
Motivations: From unwise taxation to smart taxation
-Increase Capital Cost Allowances to match economic depreciation -Eliminate the capital tax in Canada where it still exists -Convert provincial sales tax to a value added tax, where applicable -Lower perversely high marginal tax rates for individual Canadians -Assess radical new approaches to taxation -Reduce or eliminate Scientific Research and Experimental Development (SR&ED) and focus on reducing taxes on business investment overall
Structures: From general support to specialized support and competitive pressure
-Continue to improve the quality of venture capital -Increase business education -Reduce regulation to increase competitive pressure -Reduce counter-productive labour regulations -Continue to pursue bilateral free trade agreements -Rebalance fiscal federalism to encourage investment in have-not regions -Introduce employer experience rating to Employment Insurance
The complete report can be downloaded directly from: http://www.competeprosper.ca/public/tor07.pdf (1.86MB)
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John F. Baugh, Founder of SYSCO Corporation, Dies at 91
HOUSTON - John F. Baugh, the founder of SYSCO Corporation (NYSE:SYY), the $33 billion Fortune 100 global foodservice marketer and distributor, passed away March 5, 2007. His passing was 37 years, almost to the date, of the corporation's initial public offering on March 3, 1970.
Richard J. Schnieders, SYSCO's chairman, CEO and president, said, "His
passing is indeed a profound loss. First and foremost, John Baugh was a
man of commitment -- to his wife, his daughter, his grandchildren and
great-grandchildren, to his faith, his community and to the company he
founded that touches so many lives today. A true visionary, a legendary
entrepreneur, an inspiration to friends and colleagues and a generous
philanthropist, his impeccable integrity and generosity of spirit have
imprinted indelibly the character of our organization."
John F. Baugh was born February 29, 1916 in Waco, TX. Growing up in the
Depression era, Baugh began his lifelong passion with the food industry
at an A&P grocery store as a stock boy at the age of 13. Eventually, he
became a store manager and in 1946, he and his wife Eula Mae founded a
new company, Zero Foods, and began selling and distributing frozen
foods to restaurants, hotels, hospitals, schools, fast-food stores and
grocery chains.
In 1969, Americans were eating out more than ever and industry studies
predicted that half of all meals would be eaten away from home by 2000.
Women who had entered the workforce during World War II were continuing
to work; with less time to cook they wanted more food prepared by
others. Baugh envisioned a national foodservice distribution
organization and shared ideas with industry friends across the country.
His dream became a reality when Zero Foods and eight other companies
joined together to form SYSCO (an acronym for SYstems and Services
COmpany). At the initial public offering on March 3, 1970, the nine
companies had aggregate sales of $115 million and served a $35 billion
market. In 1977 SYSCO became the leading foodservice supplier in North
America and has since maintained this position. In 1988, an acquisition
of its next largest competitor gave the company national coverage.
SYSCO's network of 172 locations and approximately 50,000 employees now
serves an industry in excess of $200 billion. Mr. Baugh published a
book about the company, "The SYSCO Story ... Thus Far!" in 2003.
Mr. Baugh served as chairman of SYSCO's Board of Directors until 1985,
after which he was senior chairman through 1997. He has been director,
president and chairman of several national food industry organizations.
After receiving the Heritage Award of the Food Industry in 1976, he
became the first person elected to its Hall of Fame. In 1988 he
received the Herbert Hoover Award from the National-American Wholesale
Grocers Association and later was the first person to be inducted into
the National Frozen Food Association's Hall of Fame. He was inducted
into the Texas Business Hall of Fame in 1991. Mr. Baugh was a founding
trustee of Houston Baptist University and served as a director of the
Baptist Foundation of Texas for more than 25 years, including service
as its chairman. He and his wife, Eula Mae, were substantial supporters
of Baylor University, in Waco, TX, where he served as a Regent.
Funeral services will be held Thursday, March 8, 2007 at 1:00 pm (CST)
at Tallowood Baptist Church, 555 Tallowood, Houston, TX 77024.
SYSCO is the global leader in selling, marketing and distributing food
products to restaurants, healthcare and educational facilities, lodging
establishments and other customers who prepare meals away from home.
Its family of products also includes equipment and supplies for the
foodservice and hospitality industries. For the calendar year 2006, the
company generated $33.9 billion in sales.
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Churchill Downs Incorporated and Magna Entertainment Corp. announce customer-focused agreements
AURORA, ON/LOUISVILLE, KY - North America's leading horse racing companies, Churchill Downs Incorporated and Magna Entertainment Corp. announced March 5, 2007, a series of customer-focused agreements.
Through the agreements, Magna Entertainment and Churchill Downs hope to
accomplish four objectives:
1. Foster an open and competitive business environment where horse
racing content is readily available to customers through a wide
variety of distribution points and wagering platforms;
2. Create an innovation-based environment of sustainable growth for the
North American horse racing industry domestically and
internationally;
3. Enhance wagering integrity and security to address horse racing
signal piracy and ensure content creators are compensated; and
4. Benefit the horsemen and racetracks that together create racing
content through new industry growth.
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The specific agreements are as follows:
Churchill Downs and Magna Entertainment Form Media Management Company,
TrackNet Media Group LLC, to Buy Content from and Sell Content to Third
Parties
Churchill Downs and Magna Entertainment have formed a joint venture
called TrackNet Media Group LLC ("TrackNet Media") through which the full
breadth of the companies' respective horse racing content will be available to
each company's various distribution platforms, including Magna Entertainment's
advance deposit wagering ("ADW") platform, XpressBet(R) (www.xpressbet.com), a
Churchill Downs-owned ADW platform, www.twinspires.com, under development, and
to third parties, including racetracks, OTBs, casinos and other ADW providers.
TrackNet Media will also purchase horse racing content from third parties to
make available through Churchill Downs' and Magna Entertainment's respective
distribution platforms. Both companies believe that a single organization
performing these important functions will promote optimal distribution of
content across a broader spectrum of platforms, including ADW providers,
international outlets and distributors that offer rebates. By creating a
single cost-effective organization to more efficiently buy and sell racing
content, TrackNet Media will have the resources to pursue wagering integrity
and security objectives, with a view toward generating revenue for horsemen
and racetracks that create content.
"Both Churchill Downs and Magna Entertainment believe that our industry
must embrace change and drive innovation to make our products more appealing
to our customers," said Churchill Downs' President and Chief Executive Officer
Robert L. Evans. "We believe that our customers and our industry will benefit
from broader distribution of our racing signals and that integrity and
security with respect to our signals is paramount. We hope other content
owners will endorse our approach in similar reciprocal agreements with
TrackNet Media to ensure the broadest possible distribution of racing content
to markets worldwide."
"To better serve our customers and grow the financial return for our
horsemen, Magna Entertainment and Churchill Downs believe the time has come to
make our simulcast content available through as many trusted and eligible
distribution platforms as possible," said Magna Entertainment Chief Executive
Officer Michael Neuman. "In doing so, we can maximize the content available to
customers and the revenue available to the horsemen and racetracks who create
the industry's content."
Churchill Downs Purchases 50-Percent Interest in HRTV(TM)
In addition, Churchill Downs has purchased a 50-percent interest in Magna
Entertainment's horse racing TV channel, HRTV(TM). Both Churchill Downs and
Magna Entertainment will work to offer as much of their respective live export
simulcast content as possible on HRTV(TM) and will actively explore how the
television medium can be used to more effectively serve horse racing customers
- and the industry as a marketing vehicle. HRTV(TM) will seek additional
content providers who wish to televise their horse racing content alongside
the Churchill Downs and Magna Entertainment content.
As part of its 2007 offerings, HRTV(TM) will broadcast "Target
Louisville," a 30-minute television program highlighting the training,
workouts and final preparations of Kentucky Derby contenders. "Target
Louisville" will air daily during the week leading up to the 133rd Kentucky
Derby at Churchill Downs.
"With the inclusion of Churchill Downs-owned racing content on HRTV(TM),
this television channel becomes a significant destination for horse racing
fans," continued Neuman. "With Magna Entertainment and Churchill Downs serving
as anchor tenants, HRTV(TM) represents a subscriber acquisition opportunity
for carriers and a distribution opportunity for content providers to consider
as their television rights become available."
Churchill Downs to Launch ADW Service, www.twinspires.com
Churchill Downs is currently developing its own ADW platform,
www.twinspires.com, which will launch later this year. The site will offer
racing fans the opportunity to watch and wager on Churchill Downs- and Magna
Entertainment-owned racing content as well as other racing content made
available through TrackNet Media licensing agreements. Customers can visit
www.twinspires.com to learn more about its future offerings and sign up for
e-mail alerts. Churchill Downs will share more information about
www.twinspires.com, including the target date for launch, with customers and
members of the media in the next few weeks.
One of the primary focuses for the companies' joint venture, TrackNet
Media, will be enhanced wagering integrity. TrackNet Media will invest
significant resources to better monitor the entities that have access to the
companies' racing content and wagering pools. TrackNet Media staff will work
closely with domestic and international outlets licensed to simulcast and
accept wagers on TrackNet Media-licensed products to ensure that content
offered through TrackNet Media is being used appropriately and in ways that
provide compensation to the horsemen and racetracks that produce the content.
Third parties will not be allowed to sublicense TrackNet Media content to
other tracks, OTBs, casinos, rebate shops or ADW providers, thereby reducing
the risk of horse racing signal piracy and other integrity issues.
Both Churchill Downs and Magna Entertainment will continue to honor all
existing contractual obligations with respect to their content. TrackNet
Media's ability to license simulcast content from Churchill Downs-owned
racetracks to ADW providers other than the Television Games Network ("TVG")
will commence with the expiration of those tracks' individual TVG agreements.
TrackNet Media will have immediate access to racing signals from Churchill
Downs racetrack for its 2007 Spring Meet, which begins April 28, and to
signals from Fair Grounds Race Course when the track begins its 2007-08 meet
in November 2007. TVG will continue to have access to simulcast content from
Arlington Park through Aug. 6, 2007, and from Calder Race Course through the
end of its 2007-08 racing season, which ends Jan. 2, 2008.
Churchill Downs 2007 Spring Meet will be available on HRTV(TM). Arlington
Park, Calder Race Course and Fair Grounds Race Course will join the HRTV(TM)
line-up as their respective TVG contracts expire.
"We believe the business initiatives we're launching will benefit
customers in many ways, including the optimal distribution of simulcast
content originating from Churchill Downs- and Magna Entertainment-owned
racetracks to other tracks, OTBs, casinos and ADW providers," said Evans. "We
hope other content providers and content licensees will follow our example,
and make their content available as well.
"The transition to a new and more competitive business model may cause
some temporary disruptions for some customers. We acknowledge that and want to
apologize in advance for any inconvenience to them. In the end, we believe
customers will benefit greatly from the approach we're taking, and we
appreciate their patience and understanding."
TrackNet Media will be headquartered in Louisville, Ky. TrackNet Media
and HRTV(TM) will have offices in Louisville and Arcadia, Calif. Scott Daruty,
formerly the chief U.S. counsel for Magna Entertainment, will serve as
TrackNet Media's chief executive officer. Patrick Troutman, who served as vice
president and general manager for the Churchill Downs Simulcast Network
("CDSN") and Churchill Downs Simulcast Productions, will serve as TrackNet
Media's executive vice president. Current members of CDSN's support staff will
join TrackNet Media, as will certain members of MEC's simulcast operations.
Representatives from Magna Entertainment, Churchill Downs and TrackNet
Media will discuss their new customer-focused partnership in a teleconference
with members of the media today (March 5) at 10 a.m. EST. Journalists may
participate in the teleconference by dialing (866) 713-8565 or (617) 597-5324
for international participants and entering the pass code 30351265 at least
10 minutes before the appointed time.
Churchill Downs Incorporated ("Churchill Downs"), headquartered in
Louisville, Ky., owns and operates world-renowned horse racing venues
throughout the United States. Churchill Downs' five racetracks in Florida,
Illinois, Indiana, Kentucky and Louisiana host many of North America's most
prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington
Million, Princess Rooney Handicap, Louisiana Derby and Indiana Derby.
Churchill Downs' racetracks have hosted seven Breeders' Cup World
Championships. Churchill Downs also owns off-track betting facilities and has
interests in various advance deposit wagering, television production,
telecommunications and racing services companies that support Churchill Downs'
network of simulcasting and racing operations. Churchill Downs trades on the
NASDAQ Global Select Market under the symbol CHDN and can be found on the
Internet at www.churchilldownsincorporated.com.
Magna Entertainment is North America's largest owner and operator of
horse racetracks, based on revenue, including such major venues as Santa Anita
Park, Gulfstream Park and Pimlico Race Course, home of the Preakness Stakes,
the middle jewel of racing's Triple Crown. It develops, owns and operates
horse racetracks and related pari-mutuel wagering operations, including
off-track betting facilities. Magna Entertainment also develops, owns and
operates casinos in conjunction with its racetracks where permitted by law.
Magna Entertainment owns and operates AmTote International, Inc., a provider
of totalisator services to the pari-mutuel industry, XpressBet(R), a national
Internet and telephone account wagering system, as well as MagnaBet(TM)
internationally. Magna Entertainment trades on the NASDAQ Global Select Market
under the symbol MECA and the Toronto Stock Exchange under the symbol MEC.A
and can be found on the Internet at www.magnaent.com.
Magna Entertainment and Churchill Downs previously formed a joint venture
with Racing UK, a media rights company and subscription television channel
owned by 31 leading British racecourses, to operate the international
television channel Racing World, which brings the best North American and
international racing five days a week, six hours a day to British and Irish
viewers. British and Irish customers can wager though the British bookmaker
Victor Chandler. Racing World plans to continue to add additional bookmakers
throughout 2007.
HRTV(TM) is a 24-hour television network providing up to 15 hours per day
of wire-to-wire coverage of live horse racing action from more than
70 thoroughbred, harness and quarter horse racetracks in the United States,
Canada and Australia. The award-winning network is available from major
satellite and cable companies throughout the country. Additional background
information on HRTV can be found on www.hrtv.com.
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Magna Entertainment Corp. announces results for the fourth quarter and year ended December 31, 2006
AURORA - Magna Entertainment Corp. ("MEC") reported its financial results for the fourth quarter and year ended December 31, 2006.
In announcing these results, Blake Tohana, Executive Vice-President and
Chief Financial Officer remarked, "MEC made significant progress during the
fourth quarter of 2006 in selling assets and paying down debt. We closed The
Meadows transaction in November 2006, which generated a gain on sale of
intangible assets of $126.4 million and contributed to debt repayments of
$116.7 million and a net reduction in bank indebtedness of $33.4 million
during the quarter. In February 2007, we disposed of two non-core real estate
properties for proceeds of $30.1 million, which were used to pay down debt. We
are continuing to pursue other funding sources to further strengthen our
balance sheet, which may include additional non-core asset sales, partnerships
and raising equity. We also remain focused on improving operations. Although
we are disappointed with the fourth quarter results at Gulfstream Park, we
have already taken steps to reduce costs and improve profitability from both
the slots and racing operations. We look forward to the installation of an
additional 700 slot machines at Gulfstream Park later this month, which we
expect will also contribute to improved results."
Our racetracks operate for prescribed periods each year. As a result, our
racing revenues and operating results for any quarter will not be indicative
of our racing revenues and operating results for the year.
Our financial results for the three months and year ended December 31,
2006 reflect the full quarter's operations for all of MEC's racetracks and
pari-mutuel wagering and gaming operations. Discontinued operations for 2006
includes the Fontana Golf Club, the sale of which was completed on November 1,
2006, the Magna Golf Club, the sale of which was completed on August 25, 2006
and the operations of a restaurant and related real estate in the United
States, the sale of which was completed on May 26, 2006. Discontinued
operations for 2005 includes the Fontana Golf Club, the Magna Golf Club and
the operations of the restaurant and related real estate in the United States
as noted above, as well as Flamboro Downs, the sale of which was completed on
October 19, 2005 and Maryland-Virginia Racing Circuit, Inc., the sale of which
was completed on September 30, 2005.
Revenues from continuing operations for the three months ended December
31, 2006 increased $10.1 million or 8.2% to $132.9 million, compared to $122.8
million for the three months ended December 31, 2005. The increased revenues
were primarily due to:
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- Florida operations above the prior year period by $10.3 million
primarily due to gaming revenues at the Gulfstream Park casino
facility, which opened on November 15, 2006;
- Southern U.S. operations above the prior year period by $7.4 million
primarily due to an increase in gaming revenues at the Remington Park
casino facility, which opened on November 21, 2005;
- Technology operations above the prior year period by $7.5 million
primarily due to the acquisition of the remaining 70% equity interest
in AmTote in July 2006, the operations of which are now being
consolidated whereas previously our 30% equity interest was accounted
for on an equity basis; partially offset by
- California operations below the prior year period by $15.1 million
primarily due to a change in the racing calendar at Golden Gate
Fields, whereby there were 46 live race days in the three months ended
December 31, 2005 compared to 12 live race days in the three months
ended December 31, 2006.
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Revenues from continuing operations were $702.1 million in 2006, compared
to $604.4 million in 2005, an increase of $97.7 million or 16.2%. The
increased revenues in the year ended December 31, 2006 compared to the prior
year period are primarily due to the same factors noted above for the three
months ended December 31, 2006, but also includes increased attendance, handle
and wagering revenues at Santa Anita Park as a result of better weather and
more effective marketing efforts, increased live race days at Golden Gate
Fields whereby live race days increased from 96 days in 2005 to 106 days in
2006, increased racing revenues at Gulfstream Park due to the opening of the
new clubhouse facility and increased wagering revenues at Laurel Park as a
result of additional live race days and increased average field size.
EBITDA from continuing operations for the three months ended December 31,
2006 improved $26.0 million to $7.0 million compared to an EBITDA loss of
$19.0 million in the three months ended December 31, 2005. EBITDA was
positively impacted by a $126.4 million gain on sale of intangible assets
related to The Meadows and negatively impacted by the non-cash write-down of
long-lived assets of $88.6 million. In our core racing and gaming operations,
EBITDA was also impacted by:
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- California operations below the prior year period by $6.7 million
primarily due to a change in the racing calendar at Golden Gate
Fields, which resulted in 34 less live race days in the three months
ended December 31, 2006 compared to the same period last year;
- Florida operations below the prior year period by $2.7 million as
increased gaming revenues at Gulfstream Park were more than offset by
higher operating costs; and
- Predevelopment, pre-opening and other costs above the prior year
period by $4.2 million due to a write-off of costs incurred in
connection with our Michigan racing license and costs incurred in
pursuit of the legalization of alternative gaming in Ohio, which was
defeated by the voters in the November 2006 general election.
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EBITDA from continuing operations is $12.3 million for 2006, compared to
a loss of $34.1 million in 2005, an improvement of $46.4 million. EBITDA was
positively impacted by a $126.4 million gain on sale of intangible assets
related to The Meadows and negatively impacted by the non-cash write-down of
long-lived assets of $88.6 million. EBITDA from our core racing and gaming
operations for the year ended December 31, 2006 was impacted primarily by the
same factors influencing revenues and EBITDA as noted previously.
During the fourth quarter of 2006, cash used for operations was $21.4
million, which has increased from cash used for operations of $13.9 million in
the fourth quarter of 2005 primarily due to a decrease in net loss adjusted
for items not involving current cash flows. Cash provided from investing
activities during the three months ended December 31, 2006 was $156.1 million,
which included $171.8 million of proceeds received on The Meadows transaction
and proceeds on the disposition of real estate properties, fixed and other
assets of $5.2 million, partially offset by real estate property and fixed
asset additions of $20.8 million. Cash used for financing activities during
the three months ended December 31, 2006 of $127.0 million includes $90.7
million of net repayments of advances and long-term debt with our parent,
$33.4 million of net repayments of bank indebtedness and $2.9 million of net
repayments of long-term debt.
Cash used for operations in 2006 was $61.6 million, increasing from a use
of cash in operations in 2005 of $57.6 million primarily due to a decrease in
changes in non-cash working capital balances at December 31, 2006 compared to
December 31, 2005. Cash provided from investing activities in 2006 of
$87.5 million included $171.8 million of proceeds received on The Meadows
transaction and $14.5 million of proceeds on the disposal of real estate
properties, fixed and other assets, partially offset by $89.4 million of real
estate property and fixed asset additions and $9.3 million on the acquisition
of AmTote. Cash used for financing activities during the year ended
December 31, 2006 of $51.3 million includes $27.3 million of net repayments of
advances and long-term debt with our parent, $20.8 million of net repayments
of bank indebtedness and $3.2 million of net repayments of long-term debt.
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Huge Addition to Bingemans FunworX!
Kitchener Bingemans, owner and operator of Bingemans FunworX, one of the largest indoor playlands in south western Ontario, is excited to announce a major expansion ready for June 1st, 2007
Just weeks after the announcement of the addition of 4 new giant waterslides at Big Splash, Bingemans is adding over 10,000 sq. ft to the existing 25,000 sq. ft. FunworX Indoor Playland. The addition will include an observation space overlooking FunworX and new attractions and that will give kids even more things to do year-round.
Hole-In-Fun glow-in-the-dark mini golf will offer golfers 18 holes of props and obstacles that are drenched in fluorescent graphics creating an environment that is out of this world. Hole-In-Fun will also be wheelchair accessible.
Ropes Course will have participants traverse horizontally across activities/elements two stories in the air while safely secured to the overhead tracking system. The new Ropes Course along with the existing climbing wall inside at FunworX now makes a great combination for parties and corporate team building events.
The Arcade will be expanded significantly to include even more arcade and redemption games. The addition will include the most recent video games on the market including race games where friends can challenge each other side-by-side.
“These new attractions will now give kids of all ages the chance to enjoy year-round excitement at FunworX. We’re on the road to making FunworX and Big Splash one the largest family entertainment destinations in Ontario.” says Bingemans General Manager Mark Bingeman.
Hole-in-Fun and the Ropes Course will join Bingemans FunworX’s many other attractions which include a huge interactive three-level indoor playground, arcade and redemption games of skill and chance, and private themed rooms for birthday parties.
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Laurier student named Ontario Student Entrepreneur Champion
WATERLOO Kevin Downe, a young entrepreneur in the double-degree business and math program offered through Wilfrid Laurier University and the University of Waterloo, has been named one of two Ontario champions in the 2007 Student Entrepreneur Competition.
Downe and another Ontario finalist will proceed to the regional round of the competition taking place in Ottawa March 16.
The competition which is sponsored by Advancing Canadian Entrepreneurship (ACE), a national charitable organization, and supported by CIBC Small Business involves a business-case presentation to a panel of business professionals. Each participant delivers a 20-minute presentation followed by a 10-minute question-and-answer session.
The top two contestants from the regional round go on to the national competition in Toronto May 9.
"I feel prepared," says Downe. "I've had a lot of great support from the Laurier ACE team."
Downe started a student-tutoring business, Mind Over Math, in 2003 as a way to make some extra money during the summer. To date, his company has tutored more than 250 elementary and high school students. As a full-time student in the innovative business-and-math program offered by Laurier in partnership with UW, Downe combined his passions for both teaching and business.
"This was a great way to work as a mentor and to help people see math in a different way," says Downe. "I also caught the entrepreneurship bug."
"We are so proud of the entrepreneurial spirit that we see in all of our students," says Laurier dean of business and economics, Ginny Dybenko. "We are particularly thrilled for Kevin, and wish him the best of luck with the next level of competition and in the future."
The top winner in the national competition will receive a $10,000 cash prize and be named the 2007 Student Entrepreneur of the Year.
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Grassroots organization launches campaign for gender balance within boardrooms
CALGARY - International Women's Day is chosen as launch date for non-profit, In Balance International (IBI), to initiate its grassroots campaign toward gender balance within the boardrooms of Canada, the United States and the United Kingdom. Founder, Alexander Strachan, announced that IBI will begin "organizing for balance" by leveraging women's consumer and economic powers to demand that boards of directors reflect the gender of their clientele. He has long-believed that women have a different point-of-view that must be heard if we're to discover fresh solutions to today's issues.
Strachan, who has had a business career that has taken him from file
clerk to senior executive, to resort-owner says, "Boards of directors are
decision-making bodies that affect everyone in almost any way we can think of:
careers, health, education, and everything we purchase. By ensuring women are
represented on boards, the world will benefit enormously from a female
perspective; and women, as well as men, will make decisions about how society
operates. Currently this means substantially increasing the number of women on
boards."
Women account for 80 percent of all consumer purchases, which translates
into power in our market-driven society. IBI will harness this power by
creating a network through which women and men, who believe in its goals, will
blend economics and activism to provide the leverage needed to instigate
change within the structure of public and private corporate, non-profit and
public sector boards.
Andrina Lever, president of Lever Enterprises, Organization of Women in
International Trade's (OWIT) 2006 "Woman of the Year", and long-time advocate
and champion for the advancement of women's entrepreneurship internationally,
sees the opportunity IBI brings: "Imagine a world where we actually harness
the brainpower, purchasing power, intellectual power, and sheer influential
power and energy that women have; and what the world could look like. All over
the world, women meet every day and every night to raise money, organize
charitable events, do volunteer work. Imagine if we brought these women
together to be leaders in change. It's exciting to see an organization such as
IBI, recognize that vision and act on it."
Visit www.inbalanceinternational.com and take steps toward a world that
is in balance.
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Online program allows companies to recognize, engage, and retain employees for less than the cost of a cup of coffee per employee each month
CALGARY - Studies show that 79% of employees leave their jobs in part due to a lack of recognition. Overall, 65% of employees felt that they were not recognized at all in the past year. Further studies say that 75% of employees are not fully engaged in their jobs. Steady economic growth and an aging work force are likely to result in further labor shortages and make the task of retaining skilled workers more difficult.
Despite an awareness of these workplace trends, few executives have had
success implementing a reliable recognition program within their
organizations.
Rare Method Interactive is
introducing Kudos(TM) - a fast, fun, and easy way to harness employee
recognition, improve communication, enhance productivity, and foster a
positive corporate culture.
"We started our recognition initiative more than a year ago," says Rare
Method president Roger Jewett, "We soon discovered that there were hidden
costs and significant time required to manually manage the program. Due to
these inefficiencies, we had limited success and buy-in from our team. We
initiated a search for a software solution to handle the administration duties
and found that, beyond expensive enterprise-level systems, the only systems
available focused on rewards rather than recognition. However, we believed a
system that encourages recognition rather than rewards as the primary
motivator was the right way to go."
"What evolved was the development of our own system called Kudos(TM). We
focused on what was important to us - ease of use, storing and tracking
messages of acknowledgement and an overall fun experience. Our team instantly
embraced the system and used it to create and support a culture of
appreciation. Using Kudos(TM) our team quickly developed a habit of providing
positive recognition to each other."
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Ontario Government Launches Inaugural Young Women Entrepreneurs Conference
Program Gives Young Ontarians Access To Successful Role Models
TORONTO - Young women in high school and post-secondary school interested in pursuing careers in business received encouragement from role models today at the first-ever Young Women Entrepreneurs Conference, organized by the Ontario Government, with the support of George Brown College and Greater Toronto Area school boards.
"We want to stimulate a culture of entrepreneurship among our youth and
women to explore the rewards of what owning your own business has to offer,"
said Minister of Small Business and Entrepreneurship Harinder Takhar. "That's
why we're hosting this conference, the first of its kind in Ontario to give
young women the resources they need to succeed."
"This is an excellent opportunity for young women to pursue their dream
of owning and running their own businesses," said Minister of Women's Issues
Sandra Pupatello. "As Minister Responsible for Women's Issues, I applaud this
effort to help young women succeed."
Students heard from an impressive line-up of successful women
entrepreneurs who shared their experiences about starting and running a
business and the required qualities and skills needed to prosper. The students
learned about the many resources available to help them if they choose
entrepreneurship as career.
Guest speakers included: Lynn Hazlett, CEO, Primex Customs and Logistics
Inc.; Julie Henderson, President and Co-Owner, The Helicopter Company Inc.;
Priya Ramanujam, Co-Publisher and Editor-in-Chief, Urbanology Magazine and
Neena Kanwar, President and CEO, KMH Cardiology and Diagnostic Centres.
The Ministry of Small Business and Entrepreneurship has several programs
aimed at nurturing an entrepreneurial mind-set and skills in Ontario's youth:
<<
- Future Entrepreneurs helps students in grades 7 and 8 develop
the creative, planning and risk-taking skills they will need as
entrepreneurs.
- The Secondary School Business Plan Competition gives high school
students a chance to create a business plan and compete with their
peers throughout the province for cash awards that can be used for
educational and career pursuits.
- Summer Company provides hands-on business training and awards of
up to $3,000 to help young entrepreneurs aged 15-29 start and
manage their own businesses.
>>
The government also recently announced an investment of more than
$2.2 million in the Youth Entrepreneurship Partnerships initiative which
provides grants to non-profit organizations for programs that promote the
development of entrepreneurial skills in youths aged 12-29.
"As a former entrepreneur, I'm familiar with the challenges,
opportunities and satisfaction involved in traveling this unique path," Takhar
said. "I know how important it is for entrepreneurs to have encouragement and
support. That is why my ministry offered this very important conference."
The number of Ontario businesses owned or co-owned by women jumped from
150,000 in 1981 to 450,000 in 2001 according to a federal government report
entitled "Sustaining the Momentum: An Economic Forum on Women Entrepreneurs."
This conference was designed to build on that success.
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Centre for Family Business breakfast on Friday, March 23rd, 2007 - Practical and Applied Motivation: The evolution of the manager
Highlights
Are you a management throwback? If you find yourself still managing from behind your desk and expecting your employees to fit your style, then you are a management dinosaur. Today's evolved manager understands and responds to various personality types and knows what motivates each individual. "Management by Walking Around" (MBWA) is discussed along with communication transparency - keeping your employees in the loop as far as company information such as safety stats, sales, contracts in the pipeline and other methods in order to inspire involved stakeholders. Today's modern manager creates problem-solving teams, invests in people through excellent training and carries out frequent reviews of specific motivation action plans, including setting SMART goals.
Register for this seminar Today!
Event details
Keynote Speaker: Jane Barlow, VP of Operations at Stack A Shelf in Cambridge
Date: Friday, March 23rd, 2007
Time: 7 - 10am
Location: The Westmount Golf & Country Club, Kitchener
Who should attend
Owners/CEOs, managers and key management employees.
Are you a family business who could benefit from CFFB? Our members would agree that personally experiencing one of our monthly Breakfast Seminars is the best way to truly appreciate the quality and value of a CFFB membership. First time family business guests are entitled to a complimentary guest pass to an upcoming breakfast seminar of your choice! <<guest pass attached>>
Fee
Ÿ Family Business Members: Two complimentary registrations to each of our monthly breakfast seminars are included with your annual Membership, additional registrations $60 each
Ÿ Sponsors: Gold 4, Silver 3, Bronze 2 complimentary registrations to each of our monthly breakfast seminars are included with your annual Sponsorship, additional registrations $60 each
Ÿ Centre for Family Business Advisors: $85
Ÿ Non members: $120
To register, simply respond to this email and indicate the names of the participants that will be joining us, sign-up online through our secure website or download and print a PDF to send by mail or fax.
If interested in attending please contact
Jillian Weaver
Administrative Director
Centre for Family Business
jweaver@cffb.ca
Phone: (519) 749-1441
Fax: (519) 749-9087
www.cffb.ca
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CFIB asks member opinions with respect to Environment and Energy with a Point of View: Energy and Environment Survey
“Environmental issues and energy conservation has emerged as a top concern among Canadians," was the introduction to a member survey emailed to all CFIB members this morning (02.22.2007).
The survey pays special attention to the view of "how businesses deal with environmental issues". "Businesses who use energy are continually needing more and more energy" said Publisher of Exchange Magazine, Jon Rohr, "It's a challenge” Rohr states that at the same time a whole new energy conscious market develops and that becomes a major economic driver that “if you can catch that wave” would provide opportunity for some, but for others a “huge amount of frustration.”
As a service to small and medium sized businesses, CFIB wants to ensure that the needs and concerns of Canada's small- and medium-sized enterprises are considered as these environmental policies that effect them are developed.
Other Questions as by the CFIB:
Do You Need Another Property Tax?
City governments across Canada are looking to Vancouver to see if their new "parking tax" is going to take hold. CFIB is working hard to ensure that it doesn't succeed and become yet another municipal government money grab. The potential implications for businesses across the country are huge. Here's the background. Businesses in Greater Vancouver must now pay an additional property tax on the area of their property used for "parking". This includes driveways, walkways, bicycle racks, elevators, landscaped green spaces, and storage areas. The annual tax is levied at the rate of $0.78 per square metre--in addition to the property taxes already payable on the area.
Our members are concerned about this tax for a number of reasons. First, it is assessed only on non-residential properties. Businesses already pay many times their proper share of property taxes; the new tax makes the tax gap even worse.
Second, the tax is assessed by a regionally appointed authority. We believe it is wrong, or even unconstitutional, for an unelected body to have taxing authority.
CFIB has been very active on this issue, mobilizing SMEs to send more than 4,000 faxes to the board of TransLink and BC's Minister of Transportation, meeting with mayors and MLAs, and creating the Park the Tax Coalition. Our efforts have spurred hundreds of stories in the local and national media.
There have been some victories along the way. Our fight stalled implementation of the tax by one full year and forced a rate reduction from $1.04 to $0.78 per square metre. Our ultimate aim is to overturn the tax entirely. However, other cities across the country have expressed interest in the tax. Could yours be next? Let's stop this tax where it started - Battleground Vancouver.
For more information click here.
Big unions shouldn't have the right to put my small business at risk!
We need your help to stop a federal bill (known as Bill C-257) that will ban the use of replacement workers during a strike at federally regulated companies. This means that fundamental services such as railways, trucking, and telecommunications could shut down completely, crippling the distribution of goods and services right across Canada. This proposed legislation is confusing and unclear, and will only complicate labour relations that have been relatively stable for almost 10 years.
This bill is moving quickly through to law and is only one vote away from being passed by the House of Commons. We need your voice to stop this from moving forward - you need to contact your local MP TODAY and let them know that you are worried about the impacts of this bill on your business and on Canada's competitiveness.
CFIB encourages you to contact your MP directly by filling out the Online Action Alert. MPs need to hear from small and medium-sized businesses in their riding. Your input is critical to defeating bill C-257.
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Fourth Annual International Business Awards Seeking the Best in Business Worldwide
Awards to Be Presented in Germany in September
FAIRFAX, VA- - The Fourth Annual International Business Awards marked the launch of its call for entries today with a revised list of categories and plans to stage its awards gala outside the U.S.A. for the first time.
Hailed as "the business world's own Oscars" (New York Post, April 27, 2005), The International Business Awards are the only global, independent awards program honoring outstanding achievements in business.
Entry kits for The 4th Annual International Business Awards may be requested at www.stevieawards.com/iba. The 2007 awards will honor accomplishments made in 2006. The entry deadline is April 16.
All organizations worldwide may participate in the IBAs -- public and private, for-profit and non-profit, large and small. Entries may be submitted in dozens of categories ranging from Best Multinational Company to Best Advertising Campaign. For a full list of categories visit: http://www.stevieawards.com/pubs/iba/awards/171_695_3021.cfm.
Multiple awards based on geography will now be conferred in a number of the most popular categories. Entries may be submitted in multiple languages including Chinese, English, French, German, Japanese, Korean, Portuguese, and Spanish.
icknamed the Stevie(R) for the Greek word "crowned," the awards, designed by the same company that makes the Oscar and Emmy, will be presented at a gala banquet | |