Experts Matter. Find Yours.

A new year with new changes for how small businesses are taxed.

The only thing surer than death and taxes, might be the annual changes and adjustments to the way small businesses are taxed in Canada. New restrictions, and rates can have positive and negative impact on business owners and their companies. This coming year, changes to Employment Insurance and the Canada Pension Plan could make the bottom line of some small businesses tighter. However, the overall corporate tax rate applicable to many small businesses in Ontario has fallen to 12.5%. We may see more money going back in the pocket of owners or their growing companies. “We know that the average small business owner doesn’t know a lot about these changes.” Bill Moreau, Minister of Finance There are a lot of changes to the current system this year; as small business owners prepare to file, it is in their best interest to contact an expert. The government itself has even admitted that some businesses might not be fully up to speed, that’s where our team can help! Cleo Melanson, Tax Partner at Freelandt Caldwell Reilly LLP practices in the areas of tax and owner-managed businesses. To contact Cleo, simply click here to arrange an appointment regarding this topic. Article: https://globalnews.ca/news/4804039/tax-changes-canada-cpp-ei-small-business/

Next Level Thought Leadership and Content Marketing

We are entering an era of elevated thought leadership. Thought Leadership often focuses on a select few in an organization and misses opportunities to showcase everything your organization has to offer. It’s rarely scalable, often expensive and almost always wagers on a small pool of topics in any given quarter. The fact is that you have more expertise operating behind the scenes than you’re showing off. Enter Expertise Marketing, the next generation of content marketing.  Opening up a world of new opportunities, here is how Expertise Marketing stacks up against more traditional thought leadership programs.   SCOPE Inclusive vs Exclusive Expertise Marketing is designed to engage a diverse set of experts throughout the organization. It focuses on broader coverage of relevant topics that engage a wider variety of audiences and expand your opportunities for valuable connections.  Thought Leadership programs tends to focus on fewer select experts. Often designed as a bespoke program aimed at involving only senior executives. TIMING Sustained vs Campaign Focussed Expertise Marketing creates a sustained digital presence that leverages the content that experts are producing across the organization and distributes it across a range of channels. Most Thought Leadership programs tend to align with a specific event (such as a product launch, industry conference or social cause) that maps to a defined budget and timeframe. STRUCTURE Agile vs Controlled The agile nature of good Expertise Marketing provides the ability to quickly mobilize experts to position their expertise in the context of breaking news to create higher engagement with audiences such as the media.  This compares to the more controlled approach of a traditional Though Leadership programs that requires careful planning to ensure alignment with corporate strategy and messaging - often missing time-sensitive opportunities. COST Low vs High Expertise Marketing can efficiently leverage client or agency resources and services through technology versus Thought Leadership programs that are often structured as long-term projects that require specialized resources in agencies.  Take the steps to transform your content marketing overnight. Download the Expertise Marketing whitepaper or talk to us about how you can evolve quicker and generate a new competitive edge.    About ExpertFile For a comprehensive look at how expertise marketing benefits the entire organization and drives measurable return on investment, follow the link below to download an industry-focussed copy of ExpertFile’s Complete Guide to Expertise Marketing: The Next Wave in Digital Strategy.

Why Some Mannequins Are Turning Blue, Taking a Dive and Putting on Weight

Baylor University fashion expert and author explains new twists in 'silent selling' -- and why frustrated customers may be relieved Women have long griped about pencil-thin mannequins in clothing displays, saying they bear little resemblance to real women’s bodies and make shopping frustrating and depressing. But the criticism is beginning to make inroads, and some members of the apparel industry are introducing changes to stop idealizing thin bodies and make mannequins more inclusive — among them creating mannequins with curvier shapes, modeling the figures after disabled people and, in a very different approach, fashioning forms that are totally unrealistic, says Baylor University researcher Lorynn Divita, Ph.D., co-author of the textbook "Fashion Forecasting” and associate professor of apparel merchandising in Baylor’s Robbins College of Health and Human Sciences. And more change may be in the works, prompted by research. A 2017 study published in the Journal of Eating Disorders found that 100 percent of the female mannequins studied in two large English cities represented an underweight body size — one that would be “medically unhealthy.” (Note: While female mannequins look scrawny, many of their male counterparts are brawny. Only 8 percent of male mannequins represented an underweight body size — although many appeared “unrealistically muscular,” researchers said.) Divita, who conducts research on the apparel industry, tracks trends and makes fashion predictions, offers some observations in this Q&A: Q: If mannequins are supposed to be a “silent seller” and a strong method for attracting customers, why are they so skinny that it is discouraging to women who are average or bigger? Why can’t their makers pack a few extra plastic pounds on them? A: For one thing, mannequins are expensive. The material for one that’s larger is going to cost more, the same way it is for plus-size garments, because you use more material. Typical department store mannequins can cost on average $500 to $900, and it can cost $150 just to repair a joint on a broken mannequin. In New York, where the retail industry is widely unionized, in some stores the sales associates are not allowed to touch the store mannequins. That responsibility is solely for visual merchandisers as a means of protecting the store’s investment. Another reason smaller mannequins have been appealing to retailers is that smaller dimensions make it easier to put on and remove clothing. Q: Wouldn’t it be worth the investment to make them bigger to showcase more realistic or inclusive figures and attract those customers? A: I recently visited the corporate offices of plus-size design company ELOQUII in New York, and their creative director, Jodi Arnold (B.S.H.E. ’88), shared with me that 65 percent of U.S. women are over size 14. Yet they represent only 17 percent of apparel spending. It’s hard to determine cause and effect: are they not spending on apparel because a wide variety of options aren’t available? Or is it that a wide variety of options are not available because this market does not spend on apparel? ELOQUII is betting on the former. In addition to their online store, they’ve recently begun opening brick-and-mortar storefronts which, unlike their website, feature merchandise on mannequins. Hopefully as the plus-sized apparel market continues to grow, the increased demand for plus-sized mannequins will result in wider representation of mannequin body types overall. Q: If most mannequins don’t reflect the majority of women’s physiques, where does the inspiration come for their sizes and shapes? A: Many mannequins can be sculpted using the measurements of live models or even have their proportions based on a celebrity who has a widely admired figure. Just like there is no standard apparel sizing system for women, there is no standard sizing system for display mannequins. Q: Besides beginning to be a bit more realistic in size, how are mannequins evolving? A: We are used to traditionally seeing mannequins in static poses like standing or sitting. With the rise in popularity of activewear, stores are devoting more floor space to this merchandise category, and it only makes sense to put those mannequins in dynamic positions like doing yoga poses or running. Another great example of dynamic poses can be found in swimwear: there are some great displays of mannequins diving. The impact of dynamic poses such as these are heightened when mannequins are displayed in groups of five or seven. Dynamic poses are currently being taken to the next level by actually suspending mannequins from the ceiling, so who knows how far this trend can go? One way to address representation is to go in the opposite direction and make a mannequin that is totally unrealistic. The last time I was shopping, I saw an entire section merchandised with glossy light-blue mannequins. This is actually a very clever way of appealing to everyone by targeting no one. Another interesting thing is that new technology allows visual merchandisers to creatively alter a mannequin’s appearance without changing it permanently by printing vinyl stickers to affix to mannequins’ faces. Merchandisers can print out bold lips or dramatic eyelashes, affix them to the mannequin in the display and easily take them off when they are done, which gives visual merchandisers yet another way to attract our attention. ABOUT LORYNN DIVITA, Ph.D. Divita is the author of the textbook “Fashion Forecasting” (Fourth edition, Fairchild Books). Her publications have appeared in the Journal of the Textile Institute and Journal of Fashion Marketing and Management, both published in England; Clothing and Textiles Research Journal and Journal of Textile and Apparel Technology and Management. She is the United States editor for the Bloomsbury Fashion Business Case Studies project and is on the editorial board of the Journal of Fashion, Style and Popular Culture. Divita received her B.A. in French and B.S. in fashion merchandising from California State University Chico, her Master’s degree in apparel manufacturing management from University of Missouri, and her Ph.D. in textile products marketing from University of North Carolina at Greensboro.

It used to be a big deal – but has the once mighty blog gone bust?

In the days before Facebook … there were blogs. Blogs written by corporate leaders, academics, foodies, pundits and enthusiasts of every stripe. At one point, a blogger’s opinion could greenlight a film or sink a rising star. Blogs have massive influence. But those days are gone. Where blogs were once a salon for opinion and interest – the role that survived was usually as part of a larger institution’s communications strategy. It blended internal and external engagement – and it was effective. Until now, recently even Harvard acknowledged they were getting out of the blogging realm. But as blogs fade into the sunset – will the information, data and value be preserved? Should archives be created to maintain the history of these online conversations for future generations? Or, is it simply a delete and all that information is gone? Martha Burtis is the director of the digital knowledge center at the University of Mary Washington. An expert on this topic, she recently spoke with media regarding the winding down of blogs at Harvard. She is available to speak to media regarding this topic – simply click on her icon to arrange an interview. Source:

One Tweak That Can (Instantly) Add Significantly To The Value Of Your Business

If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. A little internet research will probably reveal that a business trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a small business and Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA) for a slightly larger business. Ian Fitzpatrick is a Chartered Professional Accountant and a Chartered Business Valuator. He is an expert in advising business owners and entrepreneurs on all aspects of corporate sales, mergers, acquisitions, litigation, succession and ownership issues. In a recent piece, Ian highlights how business owners can take simple steps to add significant value to their enterprises. To learn more, simply click on the short article attached at the bottom. To contact Ian directly, simply click on his icon to arrange an appointment regarding this topic. Source:

Reducing home equity bias through transparency

One of the goals of global stock exchange mergers is to create a consolidated trading platform that makes listed firms available to a greater number of investors while providing firms with larger pools of liquidity. But the problem of equity home bias—the tendency of investors to overinvest in domestic securities and underinvest in foreign securities—can thwart optimal global portfolio diversification. In a recent study, Grace Pownall, professor of accounting; Maria Vulcheva 05MBA 11PhD (FIU); and Xue Wang (Ohio State) examine such home bias in Euronext, which was created in 2002 when four European countries merged their stock exchanges. The researchers focus in particular on two structural mechanisms adopted by Euronext: (1) the integration of trading platforms across the four exchanges, and (2) the creation of named segments open to firms that voluntarily pre commit to greater transparency in financial reporting and corporate governance. In their investigation of these mechanisms, the researchers find that firms that choose not to join the segmented list see no diminution of home bias, while the segmented, more transparent firms reap significant increases in all categories of foreign holdings relative to domestic holdings. Source:

The link between corporate alliances and returns

Strategic alliances are agreements between two or more firms to pursue a set of agreed upon objectives while remaining independent organizations. Alliances are formed for a number of reasons, including licensing, marketing or distribution, development or research, technology transfer or systems integration, or some combination of the above. Tarun Chordia, R. Howard Dobbs professor of finance, and coauthors Jie Cao (Chinese U of Hong Kong) and Chen Lin (U Hong Kong) find evidence of return predictability across alliance partners. If the alliance partner or partners have high (or low) returns this month, then the firm has high (or low) returns over the next two months. Using a sample of alliances over the period 1985 to 2012, the authors find that a long-short portfolio sorted on lagged one-month returns of strategic alliance partners provides a return of over 85 basis points per month. This long-short portfolio return is robust to a number of specifications, including different adjustments for risk, controlling for different proxies for cross-autocorrelations, and excluding partnerships with customer-supplier relationships, as well as controls for industry returns. They theorize, “If investors are fully aware of the impact of strategic alliances on returns and pay attention to the firm-partner links, then the stock price of a firm should quickly adjust to price changes of its partners’ stocks.” The evidence suggests that investor inattention may be the source of a firm’s underreaction to its partners’ returns. Source:

The role of behavior in managing mergers

Despite corporate interest in M&As as a growth strategy, research indicates that financial returns on such deals often fall short of expectations. Corporate leaders spend considerable time looking at the financial and quantitative aspects of mergers and acquisitions; however, Sandy Jap, Sarah Beth Brown Professor of Marketing; A. Noel Gould (Texas State U); and Annie H. Liu (Texas State U) argue that factoring in people should also be a major consideration when it comes to a proposed deal. Their research indicates that better employee and customer management is especially critical to an organization’s M&A strategy and implementation success. The trio analyzed ANZ New Zealand’s horizontal merger with the National Bank of New Zealand to better understand the impact of employee and customer behavior on the deal. They contend that this brand and technology merger succeeded due to ANZ’s commitment to ensuring customer satisfaction and addressing employee concerns about the merger. ANZ New Zealand also focused on business efficiencies and rebranding efforts. Jap, Gould, and Liu note that collaboration became a big key to the success of the merger with ANZ’s financial, IT, marketing, and communications personnel working closely together to retain customers. Source:

The impact of economic prosperity on CEO ethics

Prior research suggests that economic booms are associated with overconfidence and risk-taking. In a new paper, Emily Bianchi, assistant professor of organization & management, and coauthor Aharon Mohliver (London Business School) build on that research by showing that prosperous times are also associated with more ethical lapses. The authors examined whether CEOs were more likely to backdate their stock options during prosperous economic times. Backdating stock options was relatively common during the late 1990s to early 2000s. It was also unethical. A backdating CEO would receive a stock option grant on one day but report that the options were assigned on an earlier date when the stock price was lower. This would allow the CEO to realize greater gains when he or she sold the stock. Also, it required lying to the SEC and came at the expense of company profits. To test their theory, Bianchi and Mohliver looked at the backdating patterns of 2,139 CEOs of US publically traded companies between 1996 and 2005. They found that CEOs were more likely to backdate in good economic times. They also found that “CEOs who began their careers in prosperous times were more likely to backdate stock option grants later in their careers.” The findings indicate that economic prosperity influences the likelihood of corporate misconduct. Source:

Is Nickel about to boom?

After a slump lasting a little more than a decade – it appears mining might finally be back. In Canada, the Brazilian owned Vale (formerly Inco) now seems to be emerging from its cocoon and is upping its exploration efforts in search of more ore. With all things pointing up for nickel including rising prices bolstered in part by innovations like electric cars – mining giants like Vale and Glencore seem to be preparing for a positive future. But what should we realistically expect? Will it be a return to 20 dollars per pound nickel that saw billion-dollar acquisitions, massive bonuses for employees and communities rolling in cash? Or, will this time be a bit more tempered and reserved? Who will benefit and who should be a bit more cautious this time? The higher the price for nickel usually means a rush to hire more miners, engineers, geologists and workers while greatly benefiting the service and supply industries. All of this should ripple positively across not just the local but Provincial and even National economies but in turn could impact cash flow planning and financing for growth. That’s where the experts from Freelandt Caldwell Reilly LLP can help. Joel Humphrey is a Chartered Professional Accountant (CPA, CA). Joel with over a decade of public accounting experience providing financial advisory, corporate taxation, and assurance related services to small and medium enterprises in a variety of industries. To contact Joel directly, simply click on his icon to arrange an appointment regarding this topic. Source: