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2002 Winners

Start-Up

Kate Bird
Career Essentials Inc., Toronto (Ontario)
www.career-essentials.com

Presented by Deloitte & Touche
Career Essentials (CEI) specializes in upgrading the skills of unemployed and/or injured adults to facilitate their timely reintegration into the workforce. By offering individualized and extensive services covering assessment, training, job search and co-op placements, CEI helps bridge the gap from unemployment to employment in the shortest possible time.

Kate Bird, the founder and president, graduated with an Honours Bachelor of Science in 1993 and a Bachelor of Education in 1994. Teaching positions were scarce and after two years of supply teaching, Kate moved to Toronto to work for a private adult educational upgrading facility. Rapid promotions put her in charge of operations and customer service. When the company ran into difficulty, Kate made the decision to continue providing this valuable service on her own. She took over the company’s leases and most of the employees and began her own company.

In 1998, CEI opened schools in Toronto, Woodbridge and Scarborough. Since that time, they have expanded into 17 locations across Ontario, employing more than 100 people and training more than 1,600 adults.

A typical student might be an injured 45-year old construction worker who was making $25/hour. The Workplace Safety & Insurance Board (WSIB) is now responsible for trying to match that worker’s earnings until they retire. But the worker may lack language skills and not be trained for any other type of work. Retraining this individual and making him/her productive once more is advantageous for both the individual and the WSIB.

CEI courses are designed for each student based on their initial skill level and vocational goals. Students attend class 3-4 hours per day, five days per week in groups no larger than three students to one teacher, and also do 3-4 hours of homework per day. Upon completion of the programs, about one-third of the clients re-enter the workforce directly, one-third attend private vocational schools and one-third attend community college programs.

Each CEI school is treated as a separate business, whose manager is responsible for day-to-day operations and receives a percentage of the profits of their school. Kate has five senior executives who report directly to her, all of whom started in entry-level positions, and through hard work and dedication, were successfully promoted. The success of this model is evident in the level of camaraderie and teamwork that infuse the monthly management meetings and the absences of internal politics.

Challenges include attracting and retaining good employees. To address this problem, the company has designed a management internship program that will enable teachers to develop the skills to manage their own schools. Growth plans include expansion throughout the rest of Ontario and Canada and into the US as well as expanding their services into other corporate markets.

Kate is an active volunteer and her Awards include being named one of Canada’s Hottest Startups in 2001 and 2002 by PROFIT magazine. She is also the mother of a four-month old baby. Kate’s husband Sean has taken a year’s leave from his work, enabling Kate to combine motherhood and entrepreneurship as she grows both her family and business.


Innovation

Marianne Bertrand
Muttluks Inc., Toronto (Ontario)
www.muttluks.com
Presented by Ford Motor Company of Canada

Marianne Bertrand is an avid environmentalist and animal lover. In 1994, she realized her dogs were suffering from the cold weather and salty streets. Her inability to find a suitable boot coincided with a weather forecast for two weeks of –30? C weather and her need to raise an additional $500 for her next mortgage payment.

She had no funds and was working full-time in her residential renovations business. What she did have was innovative ideas, determination, motivation and general business savvy along with an adventuresome spirit. Working at her dining room table, Marianne designed and manufactured a pair of boots for her dogs. They worked, and she saw an opportunity for a new venture. When 130 sets sold out in less than a week to local pet stores, she paid her mortgage, had her start-up capital, and a business was born.

After much research and customer input, Marianne completely redesigned the boots for better fit and longer wear. She conceived the idea of reflective Velcro that, at the time, did not exit. The name ‘Muttluks’ was adapted from the Inuit Mukluks, meaning “high boot”, which were durable, warm and waterproof.

Today the company employs 20 full-time and 40 part-time people in a new facility with 15,000 square feet of space. Production staff and management work as a team to resolve problems, determine production processes and corporate strategies. Flexible hours expand when a large order is in-house. In fact, the staff was working two shifts seven days a week in September 2001 when the call came from the NYPD Canine Unit and the Chicago Fire Department asking for boots. All efforts were re-directed to that project and Muttluks donated 850 sets of boots to the Search and Rescue dogs at Ground Zero. Thousands of people, including whole classes of school children, sent notes of gratitude in response to her gift.

The innovation continues with better sizing, a sizing chart for retailers, a self-tightening fastening systems, all-weather Muttluks made with breathable waterproof fabric for warmer climates and the summer months. Recently, Marianne launched a new improved fleece-lined boot with new reusable mesh packaging. This year, a new economy line called Hott Doggers will be available along with a newly packaged line of products targeting veterinarians.

By 1999, 85% of sales were from the US and Europe with Japan beginning to purchase her product. Marianne attends trade shows around the world to establish her presence in new and expanding markets. Sales have double almost every year and the company expects to manufacture nearly 500,000 boots by the end of the current fiscal year.

The organization and its products continue to evolve in order to maintain Muttluks’ leadership position in the market. Marianne understands that customer demand drives growth and that by continuing to innovate to meet those needs, she will ensure her success in the marketplace.


Impact on the Local Economy

Jackie Kevill
Loony Lizard Dollar Stores, St. Catharines, Ontario
www.loonylizard.com

Presented by BMO Financial Group

Loony Lizard is a dollar store. In fact, it is 26 dollar stores throughout Central and Eastern Ontario where each of the 100,000 items costs a dollar or less, where parents can tell their children that they can buy anything in the store, and where everyone has fun.

Jackie Kevill, a former teacher, started the company in 1992 with one store, which she still owns. The other stores are franchised, with 21 of the 23 owners being women. The name was chosen from drawings that Jackie’s young daughter was making as Jackie was thinking about starting a business.

Jackie’s approach to retailing is not complicated: value, trust, simplicity and fun. The biggest bang for the buyer’s buck/ The fuel she uses to make the Looney Lizard so successful is fun. She wanted to bring back the days when shopping was enjoyable, with tremendous variety and warm, friendly salespeople. And clearly that philosophy has paid off, with 143% growth in the last two years and Looney Lizards ranking 10th in growth leaders of the PROFIT/Chatelaine Top 100 Women-Owned Businesses in Canada.

Jackie began her business with a $17,000 inheritance from an aunt. She tested her concept in her own store and then franchised the idea. Starting with a business plan, she negotiates offers to lease retail space, designs the floor plans, supervises store set-up and does regular store visits. The 200-page Lizard Looniversity Training Manual, developed by Jackie, is an all encompassing reference book.

Twenty-five per cent of the franchisees are former employees. Jackie has put together a group of 250 suppliers offering thousands of different merchandise items. Franchisees have direct access to all suppliers, thereby empowering them to do their own buying and eliminating the need for an expensive, central warehouse.

Jackie’s approach to the market is different than some of her competitors. Rather than streamlining the merchandise and reducing variety, Jackie focuses on variety and customer service. This requires significant training of franchisees to give them the tools they need to be the best buyers they can be and to provide outstanding service to their customers. Happy customers are their best promotional tool.

Jackie believes that growth is a natural by-product of a successful business. Policies and producers have been put in place to help potential franchisees succeed – but they provide the products and the fun.

Export

Kathryn From & Shery Leeder
Bravado Designs Inc., Toronto (Ontario)
www.bravadodesigns.com
Presented by Export Development Canada (EDC)

Bravado Designs! manufactures and exports lingerie for pregnant and nursing women. It was founded in 1992 as a home based business by two young mothers who, frustrated by the lack of comfortable and attractive nursing bras on the market, decided to design their own.

With a $5,000 start-up loan from family, the company’s sales grew from $84,000 to $1 million in the first five years. Profits, however, were slim, and after affirming the overall vision of the company, formulating some guiding principles and revamping the product line, they were able to secure new financing to finance their growth. Sales today are over $4 million. The company sells to end-users, but 85% of their business is done through wholesalers. Exports to the US, Europe, the United Kingdom and the Middle East account for over 80% of sales and over 90% of profits. They have learned from experience not to expand too rapidly. In this way, they are able to focus their resources to ensure success and build a foundation for future expansion.

Kathryn and Shery bring very different strengths to the organization. Shery, the founding partner, is a pregnancy and breastfeeding advocate, a trained labour coach with previous experience managing infant care stores. She is deeply committed to the importance of breastfeeding and also the bolstering of a woman’s self esteem during the wonderful yet challenging time of pregnancy and nursing. Shery, who is the President and visionary, manages the production, customer service and human resources.

Kathryn joined the company in 1997 and brought a strategic focus that had been honed at Monitor Company in Canada, thought an MBA at INSEAD in France and 3M in Paris where she was responsible for managing and implementing pan-European marketing communications and research programs across Europe, Russia and the Middle East. On her return to Canada, she founded her own firm to assist Canada companies in developing and implementing international marketing strategies. Kathryn is CEO and oversees finance, information technology and export markets.

Bravado’s expanding line of products must all meet the criteria of maximum comfort, supreme functionality, style and high quality construction. They work closely with health care professions to ensure that their products meet their rigorous specifications. And they pay lots of attention to every customer, be it a new mom or a wholesaler.

Kathryn and Shery are among a new breed of entrepreneurs committed to life balance. They work hard and love their work, but know that the best way to keep motivated, enthusiastic and fresh is to ensure that they have time away from the job.

While they are a small player in the billion lingerie industry, as long as women are having babies, there will be a need for their products.

Lifetime Achievement

Rebecca MacDonald
Energy Savings Income Fund, Toronto (Ontario)
www.oesc.ca
Presented by Business Development Bank of Canada (BDC)

Rebecca MacDonald was born in the former Yugoslavia, and as a young woman trained as a physician. Realizing that the Eastern Bloc was not going to be her long-term home, she finished her Bachelor of Science and moved to Canada in 1974 with no English and very few contacts. Working initially in clerical roles while she learned English, Rebecca realized that her future was in sales.

In 1978, she married Pearson MacDonald, and together they established Toronto WaterFilters, a successful and profitable door-to-door marketing business. Through the births of her two children, Daniel and Alex, she maintained her involvement in the business, including extended sales trips to every corner of Ontario.

In 1989, with the deregulation of natural gas in Ontario, Rebecca formed Energy Marketing Inc. (EMI) to take advantage of this opportunity, and by the mid-1990s EMI was among the largest marketers in the province.

In 1992, Rebecca’s husband was tragically killed in a car accident. Left with two businesses to run and two small children to raise, Rebecca learned what she considers to be one of the fundamental rules of entrepreneurship – rely on your partners and employees.

In 1996, the UK market for gas and electricity deregulated, and Rebecca sold EMI and formed Atlantic Gas PLC. The business was an immediate success and was sold quickly to Northern Electric in 1996. Another personal challenge in the form of crippling rheumatoid arthritis entered Rebecca’s life. Not one to give in to adversity, she undertook groundbreaking experimental treatment. The arthritis moved into remission, and she is getting on with the rest of her life.

In 1997, using her own money, she founded Energy Savings Income Fund, Canada’s second largest distributor of deregulated utility services with more than 420,000 natural gas customers and 30,000 electricity customers in Ontario. The company was profitable from the start, but grew so quickly that further financing was needed. The company went public and became Canada’s top performing IPO in 2001, with a share price that has triple in 14 month and a market value of over $750 million. In 2002 Rebecca had a chance to acquire the third largest player in the industry, Sunoco’s retail natural gas business. She analyzed, completed and financed this $66 million transaction within three months.

The major challenge for Rebecca now is managing growth and company deals by sticking to a number of simple operating rules. They do not take risk. They do not speculate on commodity prices. They rely on their true strength, marketing capability. They hire good people and delegate responsibility. Energy Savings has a stock option plan that goes deep into the organization so that employee and shareholder objectives are aligned.

Rebecca is a quiet but active supporter of a number of charities. She is Director of the Canadian Arthritis Foundation, and a significant contributors to research into the disease.

Rebecca’s life has taken turns that she never could have imagined. Her strength and belief in herself have propelled her forward, and will continue to do so. She truly has had a lifetime of achievement.