#11 How to get the Government to fund your Startup with SR&ED (SHRED) Credits with Naren Balakrishnan

#11 How to get the Government to fund your Startup with SR&ED (SHRED) Credits with Naren Balakrishnan

Big three Takeaways: 1.       Canada’s Scientific Research and Experimental Development (SR&ED) or SHRED program can be a fantastic financial resource to help entrepreneurs bring their ideas to life. Naren’s team at Grant Thornton helps companies navigate the complex process of applying for SR&ED credits. 2.       Tracking activity is important when it comes to SR&ED applications. The lesson here is to create systems that can scale. There’s a great quote in James Clear’s book Atomic Habits that says “You do not rise to the level of your goals; you fall to the level of your systems.” This quote is applicable for any business., but is essential where you're trying to create consistency. 3.       A mistake I see a lot of people make in business and in life is focusing too much on the price of hiring a specialist to help solve a problem, instead of looking at the value of the opportunity you can unlock with the help of an expert or consultant you’re considering hiring. For example, A good accountant might cost $5,000 a year, but they may help you save hundreds of thousands while you’re working with them. Other Takeaways for entrepreneurs 00:01:13 – Naren introduces Grant Thornton and his role as an Research & Development and Government Incentives (RDGI) consultant, helping companies access government funding. 00:03:07 – Naren explains the SR&ED program. 00:04:08 – What qualifies as innovation from a SR&ED perspective, Naren explains the concept of technological uncertainty and gives a comparison to a toolbox. 00:08:14 – Naren provides an example of the type of a company he worked with 00:09:15 – What industries (superclusters) is the CRA looking to support through the SR&ED program? 00:10:23 – Naren gives examples of some superclusters or areas of innovation the CRA is looking at 00:12:25 – How Naren got started learning about SR&ED 00:14:31 – The similarities and differences between a company pitching for private investment vs. an application for Government funding 00:16:27 – How founders and entrepreneurs should think about the application process for SR&ED. 00:17:10 – Why you should be proactive and keep records R&D activity and expenses early 00:21:50 – Naren’s team also helps build systems to track SR&ED eligible activity more effectively 00:26:16 – How much money does Canada have in the SR&ED program and how does it compare to other countries 00:28:10 – What Naren thinks Canada is doing right and areas that can be improved in terms of attracting talent, and enabling innovation 00:31:14 – Why a more holistic approach between government and regulators is a better approach to funding innovation and keeping talent in Canada 00:34:50 – Don’t disqualify yourself before exploring the opportunity for SR&ED funding. More on my guest: * Grant Thornton [https://www.grantthornton.ca/] & Naren @ GT [https://www.grantthornton.ca/meet-our-people/naren-balakrishnan/] * Naren Balakrishnan [https://www.linkedin.com/in/narenbalakrishnan/?originalSubdomain=ca] Recommendations, resources, and extras: * SR&ED program [https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/overview.html] * National Research Council [https://nrc.canada.ca/en/research-development/research-collaboration/grant-contribution-funding-collaborators] * Suzy Q donuts [https://suzyq.ca/] * Burgers and Fries Forever [https://burgersnfriesforever.com/]

#10 Starting tech companies without a technical background with Arctic Leaf founder Josh Garellek

Big three Takeaways: 1.       Take action, when you notice a trend with business potential. Josh admits later in the interview that he has said yes to too many things in the past, but his default mode is to take action and he creates opportunities for himself with this mindset. 2.       The other side of that coin; Be careful what you say yes to. Choose the topics you want to focus on and the people you want to work with carefully. Time is your most valuable resource. 3.       Instead of jumping right into the middle of a trend and opening an online store, try starting a business that helps other stores sell their product more effectively. These have been referred to as picks and shovels businesses, and it goes back the mid 1800’s during the gold rush. Instead of digging for gold, some entrepreneurs had a great success selling picks and shovels to other prospectors. Other Takeaways for entrepreneurs 00:03:16 – Josh takes us back to before e-commerce was as important as it is now and shares his insights of the potential he saw back in 2012. 00:06:33 – Think about how others will use your website. Not everyone will explore the site in the same way. 00:08:10 – removing steps improves user experience. 00:08:59 – Mountain Crest Gardens [https://mountaincrestgardens.com/]. Before and after [https://www.arcticleaf.io/portfolio/mountain-crest-gardens], Air Kayaks [https://www.airkayaks.com/] 00:17:00 – Josh explains how he was able to immerse himself into tech to the point where he knew enough to start companies despite a lack of formal technical training. 00:18:32 – Josh goes through several resources available now to learn anything. 00:19:55 – Josh explains how he balances his curiosity and interest in learning new skills with the need to focus when you’re building a company. 00:25:51 – Josh disagrees with the notion that there’s no point in acknowledging weakness and wins me over to his viewpoint. 00:27:43 – Josh’s entrepreneurial journey 00:31:17 – What Josh thinks the future of e-commerce might look like. 00:34:19 – We get off-track and discuss supply chain and inflation. Josh’s advice, buy all your Christmas presents ASAP. 00:39:00 – How the pandemic has made it much harder to find talent and what Arctic Leaf is doing to keep up. More on my guest: * https://www.arcticleaf.io/ [https://www.arcticleaf.io/] * Josh Garellek - Linkedin [https://www.linkedin.com/in/joshgarellek/] * partnerportal.io [https://www.partnerportal.io/?hsLang=en] Books Mentioned: * Range – David Epstein [https://www.amazon.ca/Range-Generalists-Triumph-Specialized-World/dp/0735214506/ref=sr_1_1?dchild=1&keywords=range+book&qid=1634592424&sr=8-1] * The Compound Effect – Darren Hardy [https://www.amazon.ca/Compound-Effect-Darren-Hardy/dp/159315724X/ref=sr_1_1?dchild=1&keywords=the+compound+effect&qid=1634592459&sr=8-1] * The 10x Rule – Grant Cardone [https://www.amazon.ca/10X-Rule-Difference-Between-Success/dp/0470627603/ref=sr_1_1?dchild=1&keywords=the+10x+rule&qid=1634592495&sr=8-1] * The Effective Executive – Peter Drucker [https://www.amazon.ca/Effective-Executive-Definitive-Getting-Things/dp/0060833459/ref=sr_1_1?dchild=1&keywords=the+effective+executive&qid=1634592528&sr=8-1] * Ready Player One – Ernest Cline [https://www.amazon.ca/Ready-Player-One-Ernest-Cline/dp/0307887448/ref=sr_1_2?dchild=1&keywords=ready+player+one&qid=1634592571&sr=8-2]

#9 Standing out in the sea of sameness with Yellow Beauty founder Jaz Fenton

Big three Takeaways: 1. With the cost of failure as low as it is in ecommerce, launch well before you fully understand everything and trust that you’ll fill in the blanks as you build. 2. Be consistent, with your product and marketing. People should know what to expect when they do business with you. 3. To build a lifestyle brand, you have to find ways to consistently share your brand's values. Other Takeaways for entrepreneurs 06:18 – You can launch before you understand everything. 07:22 – The stages of scaling manufacturing 10:32 – Why cash-flow is so important when you're scaling 13:25 – behind the curtain. How ecommerce works 18:45 – The more decisions you have to make, the faster you get and the better your instincts become 20:08 – What to prioritize when launching an MVP to make sure you don’t turn customers off 25:18 – How Jaz thinks about hiring: Find people who know what they’re getting into. Go broad first then specific. 32:43 – How Jaz thinks about building a lifestyle brand. Consistently share your values. More on my guest: * Jaz Fenton [https://www.linkedin.com/in/jazfenton/?originalSubdomain=ca] * Yellow Beauty [https://yellowbeauty.com/] * Yellow Beauty [https://www.instagram.com/yellowbeauty/?hl=en] - Instagram Also mentioned: * Halud (Tumeric) ceremony [https://en.wikipedia.org/wiki/Haldi_Kumkum] - Wikipedia * Bathorium [https://www.bathorium.com/] * LoveKind [http://www.lovekind.com/] – Yellow Beauty Investors * ChitChats [https://chitchats.com/en] – Shipping to the US * Shopify [https://www.shopify.ca/online] * Emotive (not owned by Twilio) [https://emotive.io/?utm_term=emotive&utm_campaign=KB+-+Search+-+Brand&utm_source=adwords&utm_medium=ppc&hsa_acc=4212097629&hsa_cam=13608484928&hsa_grp=125372040153&hsa_ad=529012847701&hsa_src=g&hsa_tgt=kwd-300594859843&hsa_kw=emotive&hsa_mt=e&hsa_net=adwords&hsa_ver=3&gclid=Cj0KCQjw1dGJBhD4ARIsANb6Odls9hFnzzyn_zQZUYgDBH24HTZNO3TcW8m9CEAzW9apbQfijZymJqkaAv4GEALw_wcB] – SMS messaging software * Biddyco [https://biddyco.com/?gclid=Cj0KCQjw1dGJBhD4ARIsANb6OdkAQS3fr6_91Dnrsxe55wVd22q_V_VpWrP2BXnJpbPVJfSHQaS7HgUaAv1pEALw_wcB] – Social advertising * Ulta [https://www.ulta.com/] * Rosen Skincare [https://www.rosenskincare.com/] – Jamika Martin [https://www.linkedin.com/in/jamika-martin-3189a7b3/] * Coco Kind [https://www.cocokind.com/] – Priscilla Tsai – (Forbes article) [https://www.forbes.com/sites/forbes-personal-shopper/2021/05/12/cocokind-founder-priscilla-tsai/?sh=f3b722010a2a] * Mooshu Ice Cream & Kitchen [https://www.mooshuicecream.com/] * Shawarma Palace [https://shawarmapalace.ca/] * Colonnade Pizza [https://www.colonnadepizza.com/], Bronson Pizza [https://bronsonpizza.ca/], Louis Pizza [https://www.louispizza.ca/] * Steve’s book recommendation – Let My People Go Surfing – The Education of a Reluctant Businessman [https://www.amazon.ca/Let-People-Surfing-Education-Businessman-Including/dp/0143109677/ref=sr_1_1?dchild=1&gclid=CjwKCAjwvuGJBhB1EiwACU1AiUXC1yXafTuDqEvTBbIT9aHOXvSPkKP_e6sCSDQnsuhlIwWUGN79AxoC8GUQAvD_BwE&hvadid=230030906872&hvdev=c&hvlocphy=9000678&hvnetw=g&hvqmt=e&hvrand=16983759809889671805&hvtargid=kwd-296089210690&hydadcr=21799_10107444&keywords=let+my+people+go+surfing&qid=1631136368&sr=8-1]

#8 Using Basketball as a Vehicle to Build Life Skills with Right Way founder Mike Kenny

Big three Takeaways: 1.       Using a mission to drive decision making, helps build a culture. For Right Way, the mission is more than just creating better basketball players. 2.       When coaching or running a team, don’t micromanage. Let players figure things out on their own as much as possible. 3.       On pricing: Price your service at a level to attract the clients you want. In a services business, particularly coaching, you want clients who are serious about results and will put the work in. Takeaways for Entrepreneurs 00:01:46 – The business started as something Mike decided to try over Christmas and March break, which worked well because he didn’t have to compete with basketball camps that typically run in the summer. Counter positioning in action. 00:05:50 – When you’re operating in a tight knit community, connections can go a long way,  particularly when you do good work. 00:11:03 – How to build a business that can scale beyond you when you are the brand initially. 00:14:45 –Why excitement about getting back in the gym, team cohesiveness, and confidence are how Mike evaluates Right Way’s impact. 00:21:07 – A story of how the attention to detail of Carleton’s basketball program stayed with Mike. 00:26:08 – CHARDG - The core principles of Right Way Basketball. 00:41:26 – We’re all in sales, and a lot of Mike’s advice is useful to sales. 1: Don’t take rejection personally, be persistent 2: Observe more than you talk. 00:42:21 – Mike is wise beyond his years: He talks about pricing and gives a simple, but effective framework for pricing service-based businesses. 00:47:50 – Incentivizing staff is the hardest part of being a business owner. 00:54:58 – The concept I’m trying to explain and can’t remember is called is Ikigai. See link in resources below. 00:58:00 – The things Mike could only learn by running the business Takeaways for coaches 00:17:40 – For coaches: The benefits of letting players coach themselves. 00:35:05 – Two things coaches in any sport should hear. 00:39:00 – What is piggybacking and why is it detrimental for player development? More on my guest: ·Mike Kenny - Twitter [https://twitter.com/mike_kenny3?lang=en] ·Right Way Basketball – webiste, [https://www.facebook.com/RWBBall/] ·RW on Facebook [https://www.facebook.com/RWBBall/] Recommendations, resources, and extras: ·Ikigai – (Forbes) [https://www.forbes.com/sites/chrismyers/2018/02/23/how-to-find-your-ikigai-and-transform-your-outlook-on-life-and-business/?sh=56293b122ed4] ·Shawarma Palace [https://shawarmapalace.ca/] ·PGC Basketball [https://pgcbasketball.com/] ·Luka Dončić – Highlights (video) [https://www.youtube.com/watch?v=aJBl7RMDlVo] ·Professor Live – YouTube Channel [https://www.youtube.com/user/Professorlive] ·       Gregg Popovich – If you’ve never heard of him, this article [https://www.espn.com/nba/story/_/id/26524600/secret-team-dinners-built-spurs-dynasty] is great, and there’s a lot to learn about coaching and life.

#7 Tax planning is important, but it's the easy part of succession planning - with BLG tax partner Pamela Cross

Big three Takeaways: 1.       For owners planning for an eventual transition of the business to the next generation, it’s important to establish what your ideal outcome is, as opposed to selecting particular assets to leave certain individuals. 2.    When rules change, like 2016/2017 with the introduction of Tax on split income (TOSI) rules, having a team of professionals becomes even more valuable because they can help you make necessary changes to adapt. 3.    When it comes to structuring a business for transition, the numbers issues are much easier to solve than the emotional side of things. This is why frequent communication and voicing expectations is key. Other Takeaways for entrepreneurs 4:25 - The importance of founders establishing clarity around objectives: "what do you want to see happen?" 7.22 - The difference between treating family members equally vs. equitably 8:58 - The importance of communication among family members 10:39 - The importance of creating a good shareholders agreement 12:34 - The purpose and advantages of a holding company 14:20 - How a Holdco can help access the Lifetime Capital Gain Exemption 17:41 - What is a trust and why to use a family trust 23:45 - TOSI Tax rule changes in the last five years and how Pam has helped her clients adapt 31:20 - What is an estate freeze and why did the pandemic present an opportunity to undertake  a freeze 35:45 - The keys to a successful family business transition 41:44 - Pam answers the question: How realistic is HBO's Succession? 45:54 - The numbers are much easier to figure out than the emotional issues More on my guest: * Pamela Cross [https://www.blg.com/en/people/c/cross-pamela] * Bordon Ladner Gervais [https://www.blg.com/] * Pam – LinkedIn [https://www.linkedin.com/in/pamelacross/?originalSubdomain=ca] Recommendations and other resources: * STEP Canada [https://step.ca/] * Fourth Avenue Wine Bar & Café [https://107fourthavenue.com/]