Canadian startups need to think internationally in order to succeed. Learn how the DMZ can help mitigate the risk involved in expanding to new global markets.

Despite Canada’s small market, many Canadian startups are not exploring the potential that global expansion may bring to their company.

While every founder wants their company to access new customer bases and capital, only about 12 percent of small businesses in Canada currently export their goods and services. However, for companies who want to look into expanding, it might be time to start looking global from the get-go.

“The majority of tech startups don’t realize it, but they are in a business that can be global from day one,” says Abdullah Snobar, the Executive Director of the DMZ. “We need to help tech startups and early entrepreneurs see themselves as exporters, even if they don’t have a physical product.”

The DMZ has helped to raise over $1.5 billion in seed funding for startups and has provided mentorship and support, utilizing its worldwide network, to turn Canadian startups into world-class, global tech businesses.

Looking beyond Canadian borders

According to Snobar, for Canadian startups in a small domestic market, considering global expansion is a necessity, not a nice to have. This was the case for Softdrive, a DMZ incubator company, where only 3 percent of their total addressable market was in Canada.

“The US has about 24x the amount of organizations than Canada, making it critical for Softdrive to expand internationally,” says Leonard Ivey, Founder of Softdrive. “If we don’t, we’d be stunting our growth significantly and mitigating our chances of success.”

However, there are a few barriers that make global expansion difficult for Canadian startups. For pet-tech company Charmy Pet, navigating the regulations to comply with federal agencies like the CFIA and U.S. FDA was one of them—but the support of the DMZ and their connections made the process much easier.

“We were fortunate to have the support of the DMZ and their in-house supply chain experts to help us expand,” says Zach Sheng, Co-Founder and CEO of Charmy Pet.

Building a reputation in a new market, while trying to find support, trustworthy global partners, and dealing with cultural differences, can be difficult. “It can take a few years for a startup to build a solid reputation in their local market and transferring that trust to a global market is challenging,” says Mohsen Omrani, Co-Founder and CEO of OPTT. “A good way to bridge local trust to a new market is being associated with reputable organizations, like incubators and VCs, with proven track records.” It helps to have a team like DMZ in your corner where these past experiences can be used as leverage.

How the DMZ’s network can help

But Snobar says one of the biggest barriers to expansion is the founder’s own mindset. “If they don’t want to go global, then they’ll find every excuse not to go. But there’s always risk anywhere you operate,” says Snobar. “If you don’t look to expand into a new market, someone else will.”

For those who do want to expand globally, the DMZ offers founders a deep understanding of different local ecosystems, countries, and economies through their network of global offices and incubators in over 10 countries. For example, if a Canadian startup wanted to expand into India, the DMZ could connect them to other founders and partners in their field who are already involved in the Indian market. This is due to the DMZ being an enabler to global expansion—they can help founders access peers who’ll understand their journey and their struggles.

“There’s never been a more important time than today to think about how to take your business and expand to your full potential,” says Snobar. “The whole team is glad we’re helping in that journey with creating opportunities for founders entering these new markets.”

The post Why Canadian Startups Need to Look Beyond Borders appeared first on HiveInnovates.

You’ve been on Dragons’ Den since 2015 and have invested in many businesses. What’s your advice on how to run a successful workplace?

It’s been a true honour to be a Dragon for seven years, and I’ve invested in dozens of Canadian entrepreneurs and innovations. A few tips:

Understand the marketplace and define clear key performance indicators (KPIs).

Don’t underestimate the importance of conducting careful, detailed market research.

You need concrete data on your ideal customers, the existing competition, expected growth and demand, market trends, and more. These types of insights are invaluable and help you make informed business decisions and goals.

You’ll also need to be clear on the four Ps: product, price, promotion, and place. They can guide the creation of your market research, marketing plan, and customer personas, and serve as a fantastic starting point if you’re not sure where to begin.

Create a fantastic team.

Businesses often overlook the power that culture and employee engagement can have on all fronts of the company, from recruiting to exit interviews.

Happy, engaged employees do great work, and company growth will quickly follow. Small businesses can attract rare candidates by having a positive culture, a strong career track, and good training programs.

The number one mistake entrepreneurs make is trying to do too much. Don’t try and do everything yourself. No matter your stage or size, there are low-cost and accessible ways to get some things off of your plate.

Don’t just build any team — build a superteam.

Implement the right tools for your growth strategy.

The number of apps, products, and SaaS solutions available is growing exponentially. Identify and use the tools that can help you optimize your business.

Thanks to the ever-decreasing cost of technology, even small businesses have all the tools they need at their fingertips.

What challenges do employers face with the shift from in-person work to remote work? How can we overcome these challenges?

There have been so many challenges for employers and employees shifting to remote work. Remote workers are more likely to overwork. When your personal life and your work are both under the same roof, it’s harder to switch off.

When does the work day start? End? Creating a hard line between work and home is tough and if you work for yourself, you might be in never-ending work mode, which can be exhausting.

Some tips to avoid overworking:

• Set appointments on your calendar for the end of the day to get yourself out of your home office. Maybe it’s an “appointment” to go to the gym or grocery shopping, or just to take a walk around the block. Maybe it’s an appointment to read the next chapter of the book you’re currently into.
• Similarly, set up reminders to take breaks. One member of our team has a recurring daily to-do list item to take a walk.
• Create physical boundaries between you and your workspace. The best thing is if you have a dedicated office space so you can shut the office door — or even lock it.
• Turn off notifications on your phone and computer so you’re not pulled back into work after hours.

Communication has been a real challenge for employers and employees also. The communication issue is compounded if some of your team works in an office but you don’t. You miss all the overheard discussions and cubicle wall meetings. You might feel paranoid that others are having meetings and making decisions without you — and you’d probably be right. Unless the company has built a culture of inclusion for remote workers, you might be out of sight and out of mind.

The only real solution is to communicate as much as possible — clarifying anything that could be a misunderstanding — and to be proactive in speaking up.

Technology hiccups are also a huge challenge for remote work. Nothing makes a remote worker shake in fear as much as an internet outage — or, perhaps, when their computer breaks. Both are your problems to solve.

For peace of mind — and to avoid delays in your work — have a backup plan. A mobile hotspot device like a MiFi or a cell phone plan that allows tethering can save you when your internet goes out. A backup computer — or maybe even a tablet — can get you through the day until you can get your computer fixed.

In your experience, what are the key ingredients for preventing employee burnout?

In my experience and research, poor workplace cultures lead to increased burnout. I believe there are six essential elements of workplace culture:

1. Purpose. A lack of purpose or having an uninspiring purpose leads to a 39 percent increased odds of burnout.
2. Opportunity. A lack of opportunities to learn, grow, and develop increases the odds of burnout by 16 percent.
3. Success. When employees believe their companies think the bottom line is more important than people, there’s a 185 percent increased odds of burnout.
4. Recognition. Not receiving adequate recognition for great work increases the odds of burnout by 48 percent.
5. Leadership. A decreased trust in leaders leads to increased odds of burnout by 29 percent.
6. Well-being. A lack of connection and decreased sense of belonging increases the risk of burnout by 56 percent.

Looking ahead, what are important considerations for employers who want to manage a productive and positive workplace?

Some tips on how to manage a productive and positive workplace are:

Recognize employees’ progress.

While giving constructive criticism helps guide people in the right direction, it’s great to also point out the good things your employees do. Acknowledge them individually and verbally show them that you’re aware of where they started and where they can possibly go to next.

Plan team-building activities unrelated to work.

While there are different positions in the workforce, it’s important to gather the different areas in your business under one umbrella. Plan social gatherings or games for the crew to help build relationships.

Trust your employees.

Delegate without micromanaging. Once you instill more trust, you both will learn. Start by giving employees more projects and ask for their input on issues or ideas for the company.

Make your employees part of the bigger picture.

Informing the team is key to running a successful business. In order to have great communication and trust, it’s great to talk about the company’s future and goals for the upcoming months or years. This will make them feel valued and demonstrate to them that their hard work is going toward something great for the company.

Prioritize a good work/life balance.

Employers and employees all share the commonality of needing to learn to balance good work with a good life. Embrace the importance of work, but also understand the importance of maintaining a healthy life.

Set clear goals.

Make sure to define the company’s goals that employees can work toward together. While working together as a team permits productivity, it’s also great to hone in on them as individuals and help set personal goals.

Celebrate both personal and team milestones.

As you set goals and track employees’ progress, it’s nice to take a step back from the work and see what everyone has accomplished. Make sure to celebrate the goals you all accomplished.

Don’t be afraid to switch it up.

As the business has a set regular schedule, it helps to add diverse routines throughout the day. Change the order of things or try to come up with a new way of approaching a common task. It doesn’t hurt to do something different!

Offer mutual evaluations.

Whether you’re the head of the company or an employee, it’s important to have both sides evaluated. By working as a team, you can communicate your concerns to one another and ask for feedback. This helps to create a sense of ownership.

Support innovation, whether or not it works out.

A great way to include your staff in making an impact toward the company as a whole is to allow them to innovate.

Try new methods and test run them together. By allowing this, the whole team can learn what works and what doesn’t. This helps them understand their challenges and encourages growth.

Be consistent.

In order to let things run smoothly, make sure you’re consistent. While it’s great to connect with team members on a personal and relatable level, it’s just as important to act as the boss with everyone.

Take an interest in who your employees are.

While you may be busy with instructing employees on what to do next, it’s important to get to know them, too. Understanding employees as individuals is key to understanding what areas they excel in and how you can use those passions in your favour to help your business grow.

Provide tools for success.

While policy may be the sole focus at first, remember to think of creative solutions. Instead of giving strict guidelines, try to allow problem-solving to come into play. Create safe environments for employees to express their thoughts and ideas for the company.

The post How To Successfully Provide For Your Employees And Foster A Healthy Workplace appeared first on HiveInnovates.

How have entrepreneurs had to adapt to the new normal?

Nothing about being an entrepreneur is ever normal, but, with COVID, entrepreneurs now have two or three ‘new’ jobs: damage control for their current business, developing new services and gaining new clients in new ways, and, often, being more engaged with kids studying from home. Entrepreneurs must now also be more empathetic and more supportive to staff because stress levels are sky-high. As business and personal lives merge, we must recognize everyone’s doing their best and cut ourselves some slack.

One pandemic victim is too many women are dropping out of the workforce because of competing priorities. McKinsey’s/Lean In 2020 study reports 25% of working women consider downshifting or leaving the workforce because it’s too difficult to manage it all. This reverses 30 years of women advancing in the workplace. We must #stopthedrop.

What are some of the key challenges your own businesses have faced, and how are you working to overcome them?

Managing three tech companies (Canchek, SmartDirect, and Onyen), we had the infrastructure to work remotely but two challenges.

Cash flow: First, receipts slowed while customers worked to develop their own survival strategies and second, we didn’t qualify for government programs built for a standard salary model.  We take dividends and reinvest in our companies.

Technology surge: Then, we also had the enviable issue of running into resource problems.  After the “pandemic drop” phase, we entered the “demand surge”, especially with SmartDirect, our compliance/conference solution, as longstanding customers realized they could use the system to solve their COVID-19 created problems.  We worked 18-hour days every day for months.

Canchek, Canada’s anti-money-laundering (AML) solution, is doing well as is SmartDirect.  But Onyen makes me especially proud. It’s led by women who’ve created the most innovative ESG technology solution to the resource sector in 30 years. Onyen’s success confirms women who focus their energies to solving problems benefits the bottom line.

How can fintech companies help empower women?

We have to mandate the number of women in our boardrooms and at the executive level. There are plenty of talented and competent women — I’m one and know many others. Companies must create support mechanisms to grow talent, and a smoother on-ramp for women who are ready to lean back in after family commitments lessen.

Workplaces have to become more flexible and create a culture that encourages crucial conversations if we want women to stay engaged. Be flexible to reasonable requests. The pandemic has proven that we CAN work effectively from home. And, check your blind spots. Look beyond traditional measures of success when hiring for new roles. Lastly, a most critical point for empowering other women, both personally and professionally? Women must embrace the spirit of co-operation rather than competition with each other.

What advice can you share for the next generation of women entrepreneurs?

+ Conduct your due diligence. Test your business plan. Don’t wing it — you’ll lose money and your reputation.

+ Lead by example. Equality and inclusiveness are key success drivers.

+ Believe you can do this. Once this belief sets in, it’ll spread to everything you do and to everyone around you, so they believe in you.

The post Resilience in Entrepreneurship appeared first on HiveInnovates.

With an expansive resume and having played a large role in accelerating Canadian innovation, what have been your proudest accomplishments?

I’m most proud of the Clearbanc team. We started out of our Toronto condo five years ago and now we’re over 200 people and have invested over a billion dollars in more than 2,500 e-commerce companies, making us the largest e-commerce investor in the world. 

In response to the COVID-19 pandemic, and as a serial entrepreneur, what’s your current outlook on Canada’s innovation landscape?

Innovation has never been more important for the Canadian economy, especially as we move our economy beyond resources. It’s important to remember that so many incredible companies came out of recessionary periods and I have no doubt this time will be the same. The COVID-19 pandemic has accelerated secular changes in the economy — for example, e-commerce penetration as a percentage of retail sales has soared from 16 percent to 28 percent in the last eight weeks. Even in slow-moving sectors like health care, telemedicine technology has been rapidly adopted. There’s no better time to innovate than now. 

In your opinion, what unique edge or advantage does Canada have in the global landscape for innovation and entrepreneurship?

Canada has a chip on its shoulder, but that’s not a bad thing. We sit next to the largest economy in the world and it can be easy to think we’re lost in their shadow. But Canada has shown that with such a diverse, ambitious, and educated population, we’re building the next generation of great companies. We’re hungry and have all the tools we need to get started. Now it’s about launching, iteration, and execution. 

Throughout your career, what have you found to be the crucial traits or habits individuals need to consistently innovate and problem-solve creatively?

Understanding success is impossible without failure. When you build a company, there’s so much iteration and evolution before you find true innovation. I’ve had to iterate 10 times on some ideas before things really started to work. The most successful entrepreneurs on Dragons’ Den are open to feedback and are comfortable testing and pivoting. I’ve also found that the entrepreneurs that get lucky on their first try often fail in the long run because they haven’t built this iteration muscle.

What advice do you have for entrepreneurs and small businesses in this difficult and uncertain time? And what advice do you have for other business leaders looking to foster a culture of innovation throughout their organization?

Now is the time to get started. We have fewer distractions, fewer plans, and fewer trips. We can all use this time to figure out how to build for a new world. For small- and medium-sized enterprises (SMEs), every business has to have a digital presence. If you’ve been putting off launching an e-commerce store or website, we just experienced a time where people couldn’t find you without going online. We’re only at the beginning of the era of digital. I’d encourage every entrepreneur to build out their online offerings as much as they can. Even as we go back to old ways, these new online habits are here to stay.

The post Michele Romanow on Canada’s Innovation Landscape appeared first on HiveInnovates.

Rafael Rositsan

CEO & Co-Founder, Smarter Loans

Vlad Sherbatov

President & Co-Founder, Smarter Loans

While access to capital and funding are key factors required for Canadian small business development and growth, a report by Startup Canada found that 75% of entrepreneurs named finding funding as one of their biggest challenges.

Of those who considered access to funding a major obstacle, 58% also believed that there are limited funding options available in Canada. However, the rise of financing through lenders outside of traditional banks, also known as alternative lending options, has given Canadian business owners a new way to access the capital they need to grow.

Unique needs, unique financing solutions

“Everyone is different — some businesses are starting out, some are growing already and scaling up, so they all have different financing needs,” says Rafael Rositsan, CEO co-founder of Smarter Loans.

Since launching in 2016, Smarter Loans has been a helping hand in Canada, connecting people who are seeking capital with leading companies that provide financing for businesses. The providers on Smarter Loans serve a wide range of businesses, that are different sizes, operate in different industries, and may be looking for anywhere from $25,000 to over $400,000. 

Smarter Loans aims to be the central resource for business owners and entrepreneurs to discover financing options, compare products, and apply online. They’re already working with 40 of Canada’s biggest, most reputable alternative lenders, with 10 of those currently offering business financing solutions through Smarter Loans. 

Smarter Loans aims to be the central resource for business owners and entrepreneurs to discover financing options, compare products, and apply online.

Safer, more transparent alternative lending 

According to The State of Alternative Lending in Canada Study, published by Smarter Loans in 2018, nearly half of the people who used alternative lending products said that the online borrowing experience would improve if there were more transparency and clarity around the products, fees, and terms. 

“We aim to make access to capital for small businesses safe, fast, and convenient,” says Vlad Sherbatov, President and Co-Founder of Smarter Loans. “That’s why we work with leading fintech lending companies and key industry organizations, like the Canadian Lenders Association (CLA), to ensure we’re collectively promoting education, transparency, and innovation aimed at helping Canadian small businesses.” 

The company launched the Smarter Loans Quality Badge in 2018. The badge is awarded to select financial companies with an established track record that have consistently demonstrated a commitment to excellent product offerings, customer service, responsible lending practices, transparency, and safety for all Canadians.

“We wanted to make sure that Canadians that are in-market for loans and financing have a safe list of companies to turn to,” says Sherbatov. Those seeking financing are able to see detailed company profiles, read reviews, and learn about business financing solutions that are available on the market.

We wanted to make sure that Canadians that are in-market for loans and financing have a safe list of companies to turn to.

Vlad Sherbatov, President and Co-Founder of Smarter Loans

Tools to grow your company

Business owners can also utilize Smarter Loans to educate themselves on the many key aspects that are needed to run a business successfully — from the business registration processes to the best tools to use for accounting, processing payments, marketing, filing taxes, and more. 

“We develop video and written content in collaboration with published industry experts to help Canadians be more informed and better-equipped to make financial decisions,” says Rositsan. 

And with thousands of Canadian businesses already accessing capital through Smarter Loans, it’s become clear that entrepreneurs are indeed utilizing the site’s resources as a solution to one of the toughest parts of business development.

The post How Alternative Lending Can Help Fund Your Business appeared first on HiveInnovates.

Mairead Lavery

President & CEO,
EDC

Shelby Taylor

Founder & CEO,
Chickapea

Toni Desrosiers, Founder of Abeego, never thought she would find herself in the position of speaking to her banker about family planning. But that’s exactly what happened when Desrosiers was looking for funding to help launch her company. In 2008 she invented a breathable beeswax food wrap, a product that keeps food fresher for longer. “I was asked what my family planning situation was — if I got pregnant, how would I guarantee I could pay back the loan,” says Desrosiers.

Not a single male entrepreneur I know has been asked how they plan to balance work and family life.

Shelby Taylor, Founder & CEO of Chickapea

Breaking through barriers

Shelby Taylor, Founder and CEO of Chickapea, a producer of vegan gluten-free pasta made from chickpeas and lentils, experienced a similar situation when looking for investors for her company. “I received questions and concerns from potential investors regarding my commitment to the business given that I have a young family,” she explains. “Not a single male entrepreneur I know has been asked how they plan to balance work and family life.”

Both women faced some skepticism from potential investors and unsolicited advice from those who presumed they were naïve. Their stories echo a stark reality faced by women entrepreneurs regardless of the size or the success of their companies. Last year, Fortune magazine reported that in the world of venture capital, all-female start-ups received just 2% of investment dollars in 2017, compared with 79% for all-male teams. But funding isn’t the only obstacle to success.

“One of my biggest challenges was internal,” recalls Taylor. “I’m constantly working to find my own work/life balance. I remind myself that I’m showing my children that they can accomplish their dreams, no matter how big.”

Seizing growth opportunities outside Canada

Deciding to take a company global involves more risk, but Desrosiers believes there’s room for women who are willing to put in the work to become internationally known. She has seen interest in her products grow over the past few years. “In 2017, demand for our wrap grew by 300%,” she notes. “We doubled that in 2018, and at the end of January, we’ve already crushed our targets for the first three months.”

Aside from market potential, Desrosiers also believes that it is her responsibility — as the founder of a new product category — to lead the vanguard in production and new markets. “In five years, we want to be in 7.7 million households around the world, creating products with zero waste.”

For Taylor, Chickapea’s growth outside of Canada was a natural progression as the company found a manufacturer for its pasta in the US and now, Italy. “Moving into Italy, and consequently Europe, opens up a lot of doors for us,” says Taylor. “We want to have a global imprint and bring a healthy product to the world.”

The Government of Canada’s 2018 budget announced a $250 million envelope to provide financing and insurance solutions to women-owned and -led businesses that export or plan to export their products outside of the country.

Partners in growth

Export Development Canada (EDC) assisted both Desrosiers and Taylor to grow their businesses outside of Canada, primarily through financial guarantees.

The Government of Canada’s 2018 budget announced a $250 million envelope to provide financing and insurance solutions to women-owned and -led businesses that export or plan to export their products outside of the country.

Mairead Lavery has been a business leader for years and is the first woman President and CEO of EDC. “Women are the engines of entrepreneurial growth,” she states. “Today, about half of all new businesses are created by women. In fact, women are starting new businesses at 1.5 times the rate of men.”

But the organization offers more than financial and insurance support. Women generally face two additional challenges to access to financing and growth capital: knowledge and skills in areas related to foreign markets and connections with the right people, locally and internationally.

“After 75 years, EDC can confidently say that we can assist in all three areas,” Lavery comments. “We want women to know we’re here to help them go, grow, and succeed beyond Canadian borders. A combination of the right mindset, the right action plan, and the right people will get you far in business and in life.” 

The post Women Entrepreneurs Should Take the Global Plunge appeared first on HiveInnovates.