Management Committee Information Report To City Council Subject: Waterloo Region Small Business Centre Your Business Newsletter - September 2007 Edition Prepared by: Jennifer Penney, Sm. Business Advisor Ward: All Waterloo Region Small Business Centre (Cambridge Office) c.o. Economic Development Division Department: Office of the C.A.O. File No.: A01 SM Date to Management Committee: September 5, 2007 Report No: CAO 2007-64 Date to Council: September 5, 2007 We are pleased to send you a copy of the Your Business! The Newsletter of the Waterloo Region Small Business Centre. This issue discusses location and leasing; what s new in business; and event/seminars. We hope you enjoy the newsletter! If you have any questions regarding these items, please do not hesitate to contact Mrs. Jennifer Penney, Small Business Advisor, Waterloo Region Small Business Centre (Cambridge Office) at 519-740-4615.
Vol. 2, Issue 3 September 2007 www.waterlooregionsmallbusiness.com Inside! Cover Story. 1 Small Biz News... 2 Coming events... 2 Lease Essentials.. 3 Biz Spotlight.. 3 Seminars. 4 Did you know? *More than 4,300 new franchise outlets open in Canada each year. *A record 1.5 million Canadians are employed by franchise operations. *86% of the franchisees opened in Canada within the last 5 years are still under the same ownership. *The fastest growing demographic of franchise buyers is women. Source: Canadian Business Franchise Sep/Oct 2007 Location, Location, Location! The location of your business is as important to your success as having a good product to offer to your customers. There are several factors around types of locations, factors that affect your choice of premises, leasing or ownership of space. Home based If you decide to operate a business from your home, you should first check into any city bylaws and zoning regulations. Only certain types of home based businesses may be permitted. Packaged Office For a fixed monthly fee, a packaged office may include a fully furnished office, central receptionist, waiting room, board room, telephone answering, secretarial support and word processing services, and access to office equipment. A packaged office requires low start-up capital, low risk and accelerated time frame. Some communities have an" incubator office established by the municipality. This concept tends to restrict the tenant to a maximum period and usually the tenants have to be approved for eligibility. Usually some type of business management assistance is available. Shopping Centre The traffic volume of potential customers is a major benefit of shopping centre locations. Shopping centre leases tend to be very complex. It is common for the landlord to request a percentage of the tenant s gross sales in addition to the base rent. Major and Secondary Street in City Locating on principal streets will provide high pedestrian as well as drive-by traffic along with a good concentration of adjoining stores. On secondary streets, rental cost may be lower and there may be larger areas of space available, but the level of traffic will be reduced. The mix of already existing businesses will vary from the more retail focussed on the major street to more of service oriented establishments on the secondary streets. Industrial Location If your business is R&D, manufacturing or distribution you may not need to be close to your customers, or have the visibility of retail. Industrial locations may have larger premises at a lower rental cost, and are zoned for industrial use. Source: The Complete Canadian Small Business Guide. Gray & Gray More to Consider You - Does the space work for you? Customers - Does it work for them? Cost - along with rent costs, items such as is there free parking for staff and customers? Convenience - Easy to find? Safety - Is the location well lit? Is there security on the premises? Traffic counts - both pedestrian and car Facility requirements - Special needs such as high power consumption or specialized wiring? Future Expansion needs - Will you need extra space or warehousing in the future? Changing patterns in the community- Is there increased growth activity or any development that may impact your business. Check with your municipality.
Page 2 * Coming Events Inspiring Women Event September 20, 2007 www.iiiforyou.com Small Business Showcase October 3, 2007 www.waterlooregion smallbusiness.com Small Business Information Night September 18, 2007 ww.city.cambridge.on.ca Regional Trade Show September 18, 2007 www.greaterkwchamber.com Entrepreneur Week Sept 28 - Oct 5, 2007 www.entrepreneurweek.ca What s New in Small Business? The Apprenticeship Incentive Grant is a taxable cash grant of $1,000 per year. It is available to registered apprentices once they have successfully completed their first or second year or level of an apprenticeship program in one of the trades that have a Red Seal trade designation in their province or territory. www.servicecanada.gc.ca/en/goc/aig/grant.shtml Lottery Retailer Registry. June 28th, 2007 the Government of Ontario announced that it was establishing new regulations to strengthen the integrity of the lottery system. Administering this new system will be the Alcohol and Gaming Commission of Ontario. (AGCO). Beginning January 1, 2008, all retailers selling Ontario Lottery and Gaming Corporation products must be registered by the AGCO. For further information regarding applications and other information : www,agco.on.ca or you may forward questions to licensing@agco.on.ca The National Franchise & Business Opportunities Show Toronto- September 8-9 www.franchiseshowinfo.com/toronto-sept/index.html Toronto - January 12-13/08 www.franchiseshowinfo.com/toronto-jan/index.html Ottawa - September 22-23 www.franchiseshowinfo.com/ottawa/index.html London- March 29-30/08 www.franchiseshowinfo.com/london/index.html According to its newly released information in the age and sex portion of the 2006 census, Statistics Canada reports that the work force is aging so quickly that there are barely enough young people to replace those about to retire. Canadian Business Cheques have new specifications. Business owners need to make sure that their cheques comply with the new standards set by the Canadian Payment Association. The new standards allow financial institutions to exchange images of the front and backs of the cheques rather than the cheque itself. www.cdnpay.ca/news/new_cheque_specs.asp Smoke -Free Ontario Act www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_94t10_e.htm#bk2 New restrictions for selling tobacco products are coming into play over the next two years. Retailers that sell tobacco should make themselves aware of the new requirements. Some highlights include: Presently cigarettes can be displayed only in individual packages, separately wrapped. Cartons are not permitted As of May 31, 2008, no tobacco products may be displayed. Any kind of promotional material that reflects a particular brand of tobacco product is prohibited. Signs referring to sale of tobacco products are permitted only to inform customers that a retailer sells tobacco product and price. All retailers must post No Smoking signs. ( contact your local public health unit for information on acquiring required signs.)
Page 3 Small Business Spotlight Looking for someplace to locate business inquiries in Kitchener? Look no further. Embee Management is pleased to announce the opening of Royal Executive Office Centre at 30 Duke Street in the Corporation Square Building, located at the corner of Duke and Ontario Streets in Downtown Kitchener. Providing all the services a business would need, Royal Executive Office Centre aims to attract Small Business moving to their first out-of-home office, companies looking on setting up regional offices in KW, or anyone who needs an office in the core with a professional image. Virtual office and boardroom rentals will also be available. An attractive, full service building with beautiful panoramic views of the city, office sizes will run from 120 to 800 square feet. Available for Short or Long Term rental with prices starting at $800/month including: Reception and Telephone Answering Service, High Speed Internet Access, All utilities and Maintenance, boardroom usage, 24 hour access, and much more. Business can be up and running within 24 hrs of their inquiry. Royal Executive Office Centre will be soft-opening on September 1st, with full operations expected to commence October 1st, 2007. For referrals, inquiries or a tour of the facilities, please contact Michael Bierstock of Embee Office Suites at 519-342- 8363. Lease Essentials Source: Negotiate Your Commercial Lease Agreement should include: Parties to the agreement Location of premises The area of premises and measurement standard Term of lease and start date Rent amount and payment details Operating cost and date of payment Possession date Agreement date and signatures Consideration to complete the deal Make sure the lease terms are in writing. Because commercial leases can be long and complicated, you should consider having a lawyer review the lease and explain it to you before you sign the lease. Tips: Spend time looking for right location Talk to a leasing broker or lawyer before signing Determine appropriate square footage Consider lease term length that works for your situation Negotiate for more than what you expect Walk away from a bad lease proposal Avoid disclosing too much information such as previous rental costs Ask the right questions - go prepared Determine what s included in operating costs, leasehold improvements and management fees Gather information on previous rental rates in the property as well as rental rates Let the landlord make the first offer Create a wish list of leasehold improvements and consider the cost effectiveness of paying for them yourself. Other Considerations: Vacancy protection in case neighbours move and decrease traffic Heating and Air Conditioning Signage allowances Parking
Page 4 Waterloo Region Small Business Centre Seminars The cost for seminars and workshops is $26.50. (*unless otherwise noted). Registration is required. Please call 519-741-2986 to register. Sep 5 6:30 - Sep 5 1:00 - Sep 11 1:00 - Sep 12 6:30 - Starting a Business Writing a Business Plan Finding Essential Business Information Writing a Business Plan Oct 10 11:00 am -1:00 pm Oct 11 6:30 - Oct 15 6:30 - How Strong is Your Personal Brand? $40.00 + GST (includes lunch) Sedona Communications Technologies for Home Based Businesses Everything You Need to Know About Websites $35.00 + GST REM Web Solutions Sep 13 1:00 - Developing Your Market Plan Oct 17 6:30 - Managing Risks for the Self Employed Sep 18 6:30 - Sep 19 1:00 - Sep 19 6:30 - Sep 20 6:30 - Sep 24 6:30-9:30 pm Sep 26 6:30 - Sep 27 1:00 - Driving Sales Success * $35.00 +GST Sales Forecasting Finding Essential Business Information E-Marketing Trends Introduction to QuickBooks * $75.00 + GST Understanding Financials for the Business Owner Cash Flow Sponsors of the WRSBC Oct 18 1:00 - Oct 22 6:30 - Oct 24 6:30 - Oct 25 1:00 - Smart Selling for Successful Business Introduction to Bookkeeping & Essential Reporting $35.00 +GST Innovative Mortgage Strategies for Entrepreneurs and the Self Employed Presented FREE by Mortgage Intelligence ABC s of Marketing Business Seminars @ 630- October 2 October 16 October 23 October 30 Start up information Market research Business Plans Finanial Statements