The Electronic Job Docket - Another DAM Project?

Graphic arts companies manage every last detail that goes into each job. Every order is a custom order. Communicating the information required to get that job through the production process error free, without having to explain each step, is the goal of every production manager.  Add to this the fact that we need to save all the production related information as the job progresses through the plant, and then at the end archive that information along with the job’s assets for re-use and to share with our customer.

This should be a piece of cake with all the technology at our disposal.  Almost everything is now digital: files, images, communication and file transfer. Even the colour managed proof is signed off electronically. So why do we still have that paper docket floating around the shop floor?

The docket is, like the mousetrap, quite simple in purpose and highly effective. And like building a better mousetrap, creating a better job docket has been an enigma.  Many have tried and many have failed. The digital docket, though, is a necessity in a fully digital workflow. So how can we build a better mousetrap?

The Digital Docket

Most systems create their electronic job docket from the perspective of an ERP system. They record all the necessary production details, but fail to take into consideration the graphical nature of our business: holding the files, images and proofs, and communicating in a way that is meaningful to a production department.

Accessing the files from a docket for re-orders, repurposing content for alternate delivery processes, whether the Web , demand printing, or other formats, along with the paper trail of proofs, signoffs and communication—all that  needs to be captured and retrieved electronically in a timely way.

Quite a challenge for an ERP system, but more efficiently handled by a digital asset management system. The advantage is in tying into the workflow.  JDF (job definition format) technologies pave the way for automated graphic arts workflows to support these functions, and capturing workstation and user data in the process.

Adding a job ticket or job docket to a content management, or digital asset management system has proven to be a successful approach for many graphic arts companies.

Ian Broomhead, President of the DIA (who in his spare time runs CP Printing in Vaughn), has successfully implemented this technology. Ian recently showed me the system he has developed, using an off the shelf system that he modified extensively to get it to work they way he wanted.

Hence the need for systems integration. This is a term not heard in many printing plants. The open standards of new technologies built on databases with industry standards such as ODBC, JDF, PDF and XML make it easier to communicate between disparate systems.

A systems integrator’s role is to take diverse technologies and combine them, providing one seamless solution customized to your needs—a tailored package of services and systems that meets current needs and provides for growth.

But most integrators come from a document management perspective; they understand storing files, not creating and managing print production.

Be sure to find an integrator who has worked with graphic arts organization. Here are some factors you should take into consideration.

Challenges

Change management: Ensure that all stakeholders buy into changes in process, workflow, and job responsibilities. A production management system needs initiative and support from senior management, and a desire to implement from all participants.

Data migration integrity: Ensure the integrity of data from source documents when migrating  information into a new system.

Timing: Time the implementation to avoid disrupting ongoing work.

Future enhancements: Ensure that all elements will be able to scale up for growth.

Digital Docket Components

In a digital docket management system, look for:

• Project planning and scheduling: JDF-based project management, task management and process automation
• Digital Asset Management (DAM): managing and repurposing files
• Dynamic and batch conversion of file formats
• Connectivity with the information management system on a static, scheduled basis
• Workflow automation: deconstructing document pages, importing them to the content management system, page layout, automatic updating of content and pricing, PDF generation
• Preflight
• Soft proofing
• Collaborative review mechanism that aggregates requests for modifications and logs changes and activity
• Communication: email notifications of collaboration and proofing requests.
• enhanced image management and print management system
• business analytic modules for event planning
• a product information management system
• Web content automation tools that provide content and administrative tools to Web sites
• storage and archival modules
• Web-to-print modules.

Finding integration resources in the Printing Industry

The DIA has several member organizations who provide systems integration services, such as the Intuitive Solution Group in Markham, and manufacturers who provide end to end production systems which include digital dockets, such as Heidelberg, AGFA, ManRoland and Xerox.

Marg Macleod is the Association Manager of Digital Imaging Association.
T: 416-696-0151

The city of Laval outside of Montreal just hosted the Grafik’Art 2006 trade show that catered to the offset, digital and screen printing industries as well as the flexo, packaging and graphic arts industries. The show was held April 27-29, 2006 and exhibitors showed their newest products and services on more than 70 000 square feet of showroom floor. This show targeted clientele from Eastern Canada (Quebec, the Maritimes, and Eastern Ontario). The graphics industry in these regions represents approximately $5 billion dollars in sales annually.

One thing that impressed me was the increased presence of wide format printers that seemed to be everywhere. Many traditional offset printing companies are seeing the enormous potential that this wide-format printing industry has. One need only look around, both indoors and outdoors, to see that wide format printing is everywhere. There are huge opportunities to create additional revenue for anyone with a wide format printer.

The worldwide signage industry earns well over $29 billion US in business each year – and revenues continue to grow. Given the many different types of signs and banners a large format printer can produce, print providers can seize a sizeable chunk of this business.

The large format digital printing market is a large and exciting opportunity, growing at double the pace of the overall print industry.

Whether you have an aqueous, solvent or UV curable printer, these printers are capable of producing:

• Indoor and outdoor banners
• Trade show exhibits
• Backlit signage
• Posters
• Large format photographic reproduction
• Decals and pressure sensitive stickers
• Floor Graphics
• Window graphics
• Vehicle graphics and more

Aqueous inkjet printing

Large format aqueous inkjet printers are the most common printers available on the market today. Their name reflects the fact that water is the primary “carrier” component of ink used in these printers. The Canon W8400 44” pigmented ink printer was represented at the show by RB Digital and PMP Repro Media. The vibrant colors that came off the printer in record speed instantly drew the crowds. The Canon W8400 sells for around $7,500 and comes with software RIP, various other software and an Ethernet card. The brand new Xerox 8160 60” dye based ink printer was presented at the show for the first time in Quebec and will sell for around $25,000 (RIP sold separately).

Solvent inkjet printing

Solvent inks are a versatile, long-life ink that are classified as hazardous, yet milder versions are available that produce less noxious odors. Since solvent-based inks are classified as hazardous, special venting will need to be installed. Eco or mild solvent-based inks are less hazardous but may not be a durable as true solvent inks. The Mutoh Toucan LT was on display with both Treck Hall and Ernest Green. The Mutoh Toucan LT sells for around $40,000, and can now be ordered with a board printer as well, although the boards must be of a special type to work in the printer.

One of the biggest printers on the show floor had to be Canada’s own Gandinnovations, with their Jeti inkjet printers. Visitors crowded to see huge posters coming off their three meter wide Roll fed printers.

Seiko’s Color painter now with its HP patch on it (now called the HP Designjet 8000s and 9000s series) was there as well. This solvent printer from Seiko has always impressed me. You can create long-lasting outdoor signage with this fast solvent printer. This 64” model is an excellent tool to boost production and profitability: increase your print volume, improve your services, and reduce your costs. Like any solvent printer, you’ll want to vent the fumes properly. This is an industrial type of printer with excellent outdoor durability.

UV-based flatbed printers

The other emerging category of wide format inkjet technology is UV-curable inkjet. With UV-based flatbed printers the drying mechanism for the ink is completely different then that used in solvent inkjet printing. When ultra-violet light hits curable liquid ink, it transforms from a liquid to a solid on the substrate chosen. These new UV printers can range in price from about $75,000 to $500,000 and more.

ND Graphics was showing the new Gerber Solara UV2 large format, hybrid, ultraviolet (UV) inkjet printer. The SOLARA UV2 prints either roll-to-roll or as a flatbed and can accommodate a variety of materials up to 60” wide including rigid materials up to 1/2” thick. There is a conversion process required to accept different material types. SOLARA UV2 is ideal for shops specializing in durable outdoor/indoor signs, point-of-purchase displays, banners, and backlit signage. They produce prints that are instantly dry and ready to cut and apply. The unique properties of the UV inks allow easy maintenance with low odor, no ventilation requirements, or harmful VOCs.

Peter Dulis
Wide Format Printing Specialist
647-895-3315pdulis@iprimus.ca

Q. When I choose a printer, I see the same printer twice when running Classic. One of the printers I see doesn’t work. How do I get rid of the second printer?

A. Many users still required Classic to run legacy applications. They could be sales or accounting applications, which may never be written for Mac OS X. By the way, Classic is not supported on the new Intel Macs – they’re “greyed out” so you can’t open them. The double printer you’re seeing is the result of setting up the printer twice.

Normally you would setup a printer using the “Printer Setup Utility” (located in the Application’s Utility folder). You could choose Print from a Mac OS X application and choose “Edit Printer…” from the pull-down list of printers. When the “Printer List” appears, you choose Add and Browse for a printer. When you select a printer, your Mac will attempt to find the appropriate PPD (Postscript Printer Description). You should note that if it can’t find it, you can manually choose one by navigating to the PPD file. If you want the Mac to find it, put it in “/Library/Printers/PPDs/Contents/Resources/en.lprog”. You can also rename the printers in the Print Setup Utility, if you have more than one printer of the same model.

The next time you start Classic, it will review the Mac OS X printer list you’ve built and make those printers available to Classic applications. The older applications can use the Mac OS X printer queues. However, when you’re in Classic mode, (you’ll see the old multicolored Apple in the top left corner), some applications require you to set up a printer with the “Chooser.” These applications cannot use the Mac OS X queues. When you create a “Classic” printer queue using the Chooser, you’ll see the printer only in Classic.

The only way to remove the doubly defined printer is to Trash the “LaserWriter8 Prefs” file from the Printing Preferences (located in the System Folder’s “Preferences” folder). Remember, when you restart Classic, it will rebuild the LaserWriter 8 Prefs when it starts.

If the Mac OS X print queue loses your job, then the Classic application doesn’t support this method of printing. You’ll have to use the Chooser to set up the printer and you’ll be seeing double again. You can always rename the Mac OS X queue as mentioned above.

Q. I’ve recently switch over to Mac OS X Mail and I want to import my mail. Is there a way to get my old messages or are they gone forever?

A. There are a couple of methods for importing some or all of your messages. Mac OS X employs the standard “mbox” format for email. Mbox is an old UNIX format for storing email messages. The messages are concatenated (a ten-dollar techie word meaning joined one after another) starting with a “From” and ending with a blank line. Apple’s Mail, Microsoft’s Entourage and Mozilla’s Thunderbird, all support mail in this format.

If you’re coming from a PC (it’s about time if you are) and you’re using Microsoft Outlook, you can install Mozilla’s Thunderbird (or Netscape Mail) and import your messages. The mbox messages will be stored in your Mozilla folder in your folder under Documents and settings. You can send the files that have the same name as your Mail folders (ignore the .msf files – they’re indexes). Add “mbox” to the end of the files (you can do this when they’re on your Mac).

If you’re coming from a Mac, you’ll find your messages in various places depending on your program. Netscape stores messages in “/System Folder/Preferences/Netscape Users/[your name]/Mail.” Again, as on the PC, the mbox files don’t have the “.mbox” extension. Most of the newer mail applications store messages in your “Documents” folder. On Mac OS 9, the Documents folder is at the top level of the hard drive. On Mac OS X, you’ll find the Documents folder in your home folder (“/Users/[your name]/Documents).

When you’ve copied your mbox files to your mac, launch the new mail application and drag and drop the mbox files onto the messages pane. In Entourage, drop the files on “On My Computer” and they’ll import into your “Database” file (which is in “Microsoft\ User Data/Office X Identities/Main Identity”) in your home folder. If you’re using Mail, you can choose Import from the File Menu and then select “Other” from the list. You will then navigate to the folder which contains your “.mbox” files so that they can be imported.  

Timothy Mitra assists companies in mastering information technology in pre-press, print and web design. Do you have a question you would like answered by the IT guy? Please contact him at: E: tim@it-guy.com C: 416-278-8609

Employee performance is a key to business success. When you hire an employee to fill any given job, you choose the candidate who offers the best potential to succeed. But just as you maintain your capital equipment to keep it running in top condition, your staff’s success is another component of your capital investment that requires a maintenance plan as well.

The best way to put that plan into action is by doing performance appraisals. They provide the necessary feedback and coaching to help employees be motivated, do better, and accomplish more toward making your company thrive.

But just like any other tools, performance appraisals work best after you read the instructions and master their operation. With similar care and practice, you can transform the process of conducting them from a daunting task that many managers and supervisors would rather avoid, into a versatile expedient for building and maintaining your company’s success.

Be prepared

Before you can even think about assessing an individual employee’s performance, several key components should already be in place:

1. Define the nuts and bolts. The best way to accomplish this is by providing a written job description or position profile to each employee.
2. Communicate expectations for job performance to employees, including any pre-defined company or customer standards.
3. Be sure to understand each employee’s qualifications and abilities to ensure that your expectations are realistic.
4. Review and understand any legal or regulatory requirements.
5. As an evaluator, observe employees’ work execution and performance against established criteria frequently. Consider maintaining a “critical incident” log to track significant events and behavior.
6. Provide continual feedback to employees appropriate to any given situation. It’s much better to deal with a problem when it happens, than to let it become a more serious concern. And although good performance is often overlooked, it’s equally important to recognize it. When delivering feedback, both negative and positive, use specific examples to support your comments.

The performance appraisal

About 75% of North American companies conduct some type of regular review of their employees’ performance. Such appraisals work best as a reinforcement of (but never a substitute for) your ongoing efforts to manage staff performance. After all, helping your team grow is not a once-a-year task, it’s a full-time proposition.

However, there are many positive reasons to go one step further by streamlining your regular initiatives into a formal review, including:

• Find out in more depth how people are doing in their jobs
• Reinforce feedback to employees about how they’re doing
• Motivate staff
• Create or revise job and personal objectives
• Encourage employee feedback and dialogue
• Strengthen the relationship between managers or supervisors and their direct reports
• Determine training needs
• Evaluate employees for promotion
• Review employee compliance with government, health, safety and environmental regulations (essential in a regulated industry like printing).
• Identify areas that need improvement and what needs to be done to fix them.

There are many methods for conducting performance appraisals. At PrintLink, we recommend the more structured approach of arranging a one-on-one meeting for each employee. As preparation, we encourage you to review the many excellent resources in the business section of your local bookstore – many with strategies, organizational plans and sample forms that can save you hours of time in “re-inventing the wheel.” Briefly stated, here are some helpful guidelines:

For each meeting, chose a place and schedule that are most conducive to constructive dialogue. Allow enough time for meaningful discussion. Respect your time together and don’t let anything intrude on your private meeting.

Keep a positive spin on the exercise. Do everything possible to reinforce the two overall aims of: (1) providing motivational feedback and (2) finding ways to help both the employee and the company achieve their goals and make improvements.

Use the opportunity to raise staff morale. Since job security is a concern for most employees, this is a good time to reaffirm their strengths and tell them how much you value their contributions to your business. A respected leader’s appreciation is a powerful motivator.

However, you must also let them know when they’re not performing to acceptable standards. Relaying criticism constructively is essential to open, trusting communication.

Avoid surprises! Significant events or behaviors, especially negative ones, should already have been discussed with the employee beforehand.

Next month’s column will continue a list of guidelines for conducting performance appraisals.

Victoria Gaitskell is a placement specialist with PrintLink, a professional placement firm for the graphic communications industry.
T: 1 877 413-2600 E: vgaitskell@printlink.com

Ever go to a reception or event and immediately notice how there always seems to be one or two individuals who are always surrounded by people? How about an individual at a trade show booth where there always seems to be a gathering around him or her?

Effective selling starts with personal marketing... creating your own image... standing out from the rest of the “crowd” so to speak. For men, it’s a little more difficult to dress for success than for women. Not to be particularly biased here, but women can wear all kinds of colours and outfits that immediately attract attention.

Men, in spite of all our attempts, business protocol still dictates that we wear the conservative dark suit. Sports jackets are relatively conservative (unless you’re willing to push the envelope like the television character Herb Tarlick).

Let’s be realistic guys. How could we compete with a lady in a red-hot blazer when trying to network or work a trade show booth? We are relegated to possibly a two-tone shirt or a somewhat outlandish tie at the best of times.

When “business casual’ was introduced, like anything else, people pushed it too far, and now many companies supporting the “relaxed” look are providing golf and dress shirts with company logos. While many employees may scoff at wearing some outfits, it does create a professional company image, and when designed and presented properly, will create demand from prospects and customers asking for “one of those red golf shirts.”

Placed and worn strategically, they become a walking, talking billboard for you, possibly even a referral. I can’t begin to count the number of times I’ve been approached by a complete stranger who has started a conversation with “So what does company X (the logo on the shirt) do?” I wear them to trade shows, on golf courses, networking, everywhere.

Most people still seem to stumble in marketing themselves when planning for the event. What? You should have a plan simply to go to a networking breakfast or reception? Why not? Shouldn’t you go there with an objective - maybe, to get some leads or close some sales? So, if you have an objective, why not a plan on how to reach it?

Recruiters will tell you that ideal resumes should be no longer than 2 pages, or about 800 words. But when the interviewer asks you to encapsulate your career, you have to condense that into 2 minutes. Similarly, when introducing yourself, the 60-second “commercial” is the way to go.

Who are you and what can you do for me? Simple? Well I guess it must be rocket science, because only one person in about 50 can actually do it!

We have become so diverse in our capabilities and what we have to offer, that it’s really possible to explain everything you do on a 3.5” x 2” business card? However, it can be a door opener. What you do after that door opens, well that’s where the schmoozing starts.

Remember my previous article where I recalled a former sales manager’s credo “listen with your ears, not with your mouth.” Think about the number of times someone has given you his or her business card and before you have even finished reading it over, they break into a rhetoric of being the biggest and fastest – and they go on and on without even knowing more than your name and the company you work for.

Take a lesson from someone that’s produced an estimated 5,000 VDP Direct Marketing programs. The premise of Direct Marketing - a.k.a. One to One – is the right offer to the right person at the right time.

Here’s your opportunity to shine. Develop a relationship right there, on the spot. Get him or her to tell you about what they do, their company and their challenges. When they finish, you explain 2 or 3 ways how you can help. Keep it short, 30 to 60 seconds, and before you finish they’ll ask you for your card!

There are possibly hundreds of solutions to our customers’ problems, but how we put our own personal touch on it, is what builds and strengthens the relationships with them. How often do people around you come to you with problems? Now think carefully, how many come to you with solutions? Which people are you going to remember?

One last thought: Don’t forget your business cards, or whatever you hand out with your name and company on it. Yes, business cards are the standard, but what’s wrong with a stylish pen with your contact information engraved on it? Fridge magnets, note pads, golf balls – there are more than 750,000 promotional products than can be personalized. Just remember to have an extra one tucked away for that hot prospect at the very end of the evening.         

Greg Fitz is Vice President - Interactive Community Development for AARM and a 23 year veteran of variable data printing. He can be reached at www.aarm.org

This edition of Graphic Arts is all about small presses and copiers. Our feature article, starting on page 20, looks at the shifts in the market for these categories of printing equipment. And in the News, TrendWatch Graphic Arts reports that colour copiers are doing more of the kind of “robust” variable printing work that supposedly is the preserve of high-end digital presses.

Are toner-based colour copiers with RIPs for printing digital files taking over some of the printing market from offset presses? The answer seems to be both yes and no.

Colour copiers are accounting for a lot more short-run colour output than ever before in North America. But it seems that much of this is “new” work — printing that just wouldn’t have been done on an offset press, because it would have been too expensive.

It also seems that printing companies that adopt this new technology and make room for it in their production floor, and in their sales efforts, find new work for their offset presses as well. It seems that print customers like the idea of a printing company that can handle all their printing needs, short-run, stationery, point-of-purchase and more. Having a machine that produces short runs of colour cheaply can also convince a corporation that the printer will be able to handle their longer-run needs, as well.

Still, there’s little doubt that some of the work that was once done by small offset presses is being done by colour copiers. And as TrendWatch found, supposedly less capable colour laser printers are producing pretty sophisticated variable colour printing, even though they may be slower and produce output with lower resolution than the Indigo, iGen or Nexpress.

And that brings up the next question: what is quality in the eyes of the printing customer? Graphic arts professionals build their businesses and their careers on attention to “quality,” but do the customers care as much as we do about Pantone colours, resolution, grey component replacement and colour management?

So tell us at Graphic Arts magazine: how much do your customers care about colour quality? Do they insist on colour matching to their corporate standards? What about matching to colour proofs? And how discerning are they? How much do they know about colour management and how able are they to tell whether your output is close to their originals?

Tell us by e-mail (scott.bury@graphicartsmagazine.com) whether your customers’ focus is more on quality, timing, or price.

Since my last article on the Intel transition, something very interesting has happened on the Apple front. A while ago there was a public contest to get Windows XP running on new Intel-based Macs and that contest was won. My prediction was that it would be done eventually, but it happened a lot quicker than anticipated. Their install process was rather cumbersome and only the most technically savvy would most likely attempt it. Two weeks later, Apple released Boot Camp and made the process as easy as a few clicks.

Boot Camp is a simple and free download from www.apple.com/bootcamp and requires any Intel-based Mac, a blank CD and a Windows XP SP2 install disk.

Moving to the dark side

The install process was very easy, but since the installer will repartition your drive (non-destructive) to make room for Windows, I recommend that you perform a full backup first. After the repartition, Boot Camp will create a driver CD containing drivers for the Mac hardware for Windows, then reboot your computer to install Windows from the install CD.

If you’ve ever installed Windows, the process is quite easy, however, longer than a Mac OS X install. Once up and running, you insert the driver disk burned in step 2 and it’ll take care of the rest.

The Windows XP experience on a Mac

As with any PC, you’ll need to take some time to personalize it. Myself, I turn off the Fisher-Price Windows XP look and feel and turn on file name extensions, etc. The first thing you notice is that Windows feels extremely fast on these Macs. I’ve installed all sorts of software on mine and the speed never seems to fade. Perhaps Apple’s hardware is more efficient, but the jury is still out on this. I gave Windows a really good workout running all sorts of high-performance games (my only real need for Windows), and it ran flawlessly. The combination of the excellent Radeon X1600 graphics system in the iMac made for a very good gaming experience. I couldn’t find any software that wouldn’t run. After all, Intel Macs are just PCs now, albeit with better and more reliable hardware.

The only feature of the iMac that Windows would not recognize was the built-in iSight camera. AirPort wireless, Ethernet, Bluetooth, USB, and FireWire worked as expected. Booting into Mac OS X or Windows is as simple as holding down the option key on boot and selecting the OS you want.

Gotchas

The main downside to Boot Camp right now is the lack of file-exchange capability between the partitions. If you opt for a larger than 20 gigabyte partition for Windows, it’ll be formatted with NTFS, which Mac OS X can only read from (under 20GB can be formatted with FAT which is read/writable in Mac OS X). I expect write capability to NTFS in Mac OS X Leopard. The Windows side, however, cannot read HFS+ Mac disks without extra software. For the time being this is a good thing, since viruses you may contract in Windows can only affect the Windows partition.

Looking forward

Apple has publicly stated that Boot Camp will be included in Mac OS X Leopard. I expect the dual boot capability to stay intact, however, I’d put forward that Apple will take this further. What I think will happen is that we will see the ability to boot Windows inside Mac OS X (a la Classic) so we can run Windows applications alongside Mac OS X at the same time. Finally, the “Holy Grail” of computing will be upon us!

Trevor Page is the Chief Technical Officer of GraphicCARE, specializing in computer, network and technical support for the graphics industry.
T: 416-559-4905
E: trevor@graphiccare.ca

We had a very successful trip to Laval, Quebec at the end of April for the Grafik’Art  2006 show. Congratulations to Louis Bernard and all the organizers. See Peter Dulis’ report and photos from the show on page 24.

Heidelberg Canada held a very impressive Open House on May 9 and 10 th. With over 200 people in the first evening, the event was a success. See page 18 for the full report and photos.

Congratulations and best wishes go out to Dollco Printing who recently won “The 2006 Family Enterprise of the Year Award” from the Canadian Association of Family Enterprises and The Canadian Institute of Chartered Accountants. Dollco has more than 300 employees in plants in Ottawa, Toronto, Halifax and Northern USA.

The Printing house has just opened its 65th store in Brampton, Ontario. It’s great to see expansion, while many are complaining of a shrinking market place.

Avanti computer systems, a Canadian provider of estimating and costing software has aquired Denver based, Paresec. Steven McWilliams, Avanti’s Executive V.P. said, “We are very excited about the merger.” Congratulations!

After being at the show in Laval, and looking at the news around the industry, there appears to be an upbeat and positive feeling coming back into the industry after the long winter. Enjoy the spring weather and don’t forget to take an occasional break in the garden to recharge yourself.

A few years ago, Ichak Adizes wrote “How to Solve the (Mis)management Crisis” and “Corporate Lifecycles”, two books with many excellent concepts about what made management teams effective as well as what skills were needed at different periods of time during a company’s lifespan.

Adizes identified that a key success factor for an organization was to ensure that the management team covered off four critical roles. These were the roles of Producer, Administrator, Idea Person and Integrator.

Over the years, while working with many management teams in different sized companies in a variety of industries, we’ve found that seldom if ever does the top executive have all of these traits. The best managers are usually strong in only one or two of these roles and have minor competency in the third or fourth.

For the business to really be successful, it’s necessary to have other managers who can fill the voids when the top executive can’t fulfill all the roles.

A typical example is the case where the General Manager (often the owner/founder) is the kind of person that gets things done (The Producer). He pushes production through the plant, he beats the bushes for sales when the order book is low and he ensures that the equipment is kept in excellent condition. That same person may have great ideas about new products or new marketing initiatives. However, the pressure that he puts on the organization drives people crazy and his lack of interest as to what capital spending is doing to cash flow can create problems.

If this type of manager doesn’t have someone controlling the cash, as well as putting controls on spending, the organization can get into big trouble. Similarly, if there isn’t another person who’s able to smooth relations between departments and individuals, the company can fly apart.

Filling the Vacancy or Filling the Void?

Often, when a vacancy occurs, efforts are made to find a replacement with the same skill set as the person who has just left. However, when considering skill set, the emphasis is on knowledge and experience.

Sometimes an organization recruits someone who seems to have technical skills and experience far better than the departing individual. Everyone takes praise for finding such a qualified candidate for the job.

Unfortunately, at times, after a short interval, it becomes apparent that things aren’t working well. Perhaps there are more internal confrontations than ever, or maybe the bank is asking to have a meeting because the company’s cash flow is in dire straits.

The new recruit may seem to be doing the job well. He or she has done a great job of increasing sales and is great at customer service, always pushing production to get jobs out on time. The general manager is pleased since duties are carried out in the same way as he had always done.

The bottom line is that the organization filled the vacancy – but did not address the void that the departing employee left. The departing employee had always been involved in settling disputes and calming the waters when sales and manufacturing clashed. He or she was perceived as the go-to person when someone got really ticked off with the way they were treated. The General Manager saw them as being unimaginative, always arguing against spending or new ideas. Others saw them as being the only one with sanity.

When filling a vacancy, attention needs to be paid to both the hard competencies, which most people focus on, and the role(s) that the new recruit needs to fulfill to round out the management team. Hiring a person in your own image may be the worst selection you can make.   

Fred Pamenter is managing partner of PPB&D Consulting Limited, a Toronto based Human Resource firm.
T: 416-620-5980E: ppbdconsulting@aol.com

Many workflows have operators monitoring email and FTP sites. Phone calls are made to confirm FTP file receipt or emails are sent. The files are downloaded, unstuffed, unzipped, put into standard folder structures and sent to preflight.

The SWITCH products from Gradual Software in Belgium have surfaced. They automate these tasks and integrate them into existing workflows. The first of these is the entry-level version LightSWITCH.

LightSWITCH has tools available to allow FTP sites and e-mail addresses to be monitored and automatically download files and/or attachments. There are features to: automate decompression of files, copy files, change folder structures by sorting file types or names, rename files and add Type/Creator. The program’s workflow can then redirect files to another server, compress files, upload them to another FTP site, attach them to an e-mail, and also provide e-mail notifications to the parties involved. The mail tools remember the e-mail address for each job/file and jobs/files can also pick them up in the flow.

The software is easy to use and there’s a wizard for creating flows to get you started. There are also pre-made flows available for download on the Gradual Software website.

A sample LightSwitch Workflow: The files are downloaded, decompressed and filed in the department’s choice of folder structure. Email is sent to notify that the job is ready for preflight.

The more advanced FullSWITCH product adds tools that allow links to Adobe Acrobat and Distiller, Creative Suites 2, Apago PDF Enhancer, Enfocus PitStop Server and callas PDF Software.

Possibilities abound. Some examples:

1. PDF Enhancer – you can create your own automated softproofing workflow.
2. You can have a workflow that distills postscript files from an FTP site.
3. Print customer-supplied low-resolution PDF files to your proofer while the rest of the job is preflighting.
4. High resolution PDFs can be automatically downloaded and sent to PitStop Server. E-mails sent from the workflow will notify a pass or a fail.

For the Adobe CS2 Products, the workflow tools accept both actions and scripts created for Photoshop, Indesign and Illustrator. An Automator tool is available when running the program on Mac OS X for Applescripts.

Each workflow has its own log and statistics. When monitoring your customers FTP site or even your own, you’ll have information showing the speed of your file processes and any downtime, should it occur. This information can be sorted and filtered as you wish. The statistics view in FullSWITCH makes it easy to keep an eye on crucial folders in your flows. This window will help pinpoint any bottlenecks in your workflow.

Load Balancing is another tool. Flows can be set to upload or download at specific times. Files can wait in the workflow during the day and be released after hours. The Load Balancer could have several jobs downloading to different servers at the same time in a busy department.

The built-in XSLT tool is ideal to generate custom HTML preflight reports from the Enfocus PitStop Server. The PitStop Server configurator in FullSWITCH also offers XML and textual formats for the preflight errors as well as warnings that would be handy to log preflight problems in a database or spreadsheet for tracking or analysis.

Both products are available for Windows 2000 and 2000 Server, Windows 2003 Server, Windows XP Professional and Mac OS X 10.4 or higher. The Mac version is Universal Binary, so it runs on both PowerPC and Intel-based Macs.

The third version of the software to come out is PowerSWITCH, available this summer. It comes bundled with a workgroup client and has the scripting capabilities to integrate with your third-party technology.

Entry-level version LightSWITCH starts at $900 U.S. and FullSWITCH  is listed at $3,000 U.S. Trials (15-day) are available for download at www.gradual.com. 

Andrea MahoneyTriBay Enterprise
T: 416.72939687E: andrea@autoflowforprepress.ca

Are colour copiers taking work from offset presses?

In March, New York research firm TrendWatch Graphic Arts announced that RIP-driven copier/printers are becoming part of the regular workflow of many graphic arts companies of all sizes across North America for short-run and variable printing—and not just the simplest or lowest-quality jobs, but “robust” variable printing. In other words, colour copiers are taking on short-run printing that used to be produced on small offset duplicators and presses.

“We’ve noticed a shift in the types of companies who are buying direct-imaging presses,” says Betty LaBaugh, Public Relations Manager with Presstek in Hudson, New Hampshire. “On the one hand, there are the companies with conventional offset presses and on the other hand, those with toner-based copiers and printers are interested in a new kind of technology, but for different reasons. The conventional offset printers are looking to accommodate shorter runs while improving their efficiency; companies with toner-based printers and copiers are looking toward slightly longer runs and economies of scale. So while these two types of companies are trying to solve opposite challenges, they sometimes arrive at the same place.

“Most people still recognize that offset quality is still superior to digital presses’,” says Steve Klaric, Product Manager, Sheetfed and Small Format Presses at Heidelberg Canada.

The conventional division of the printing industry into small, medium and large printers and instant print shops has long since gone. But printers in Canada are still struggling with finding their own niche in this constantly shifting market.

“The primary buyers of digital presses have always been the classic commercial printers, typically large and medium-size printers,” says Avi Basu, Indigo Category Manager for Hewlett Packard. “But there is a significant group of non-conventional customers: many smaller, innovative companies with no prior experience in printing who offer a wider range of marketing services.” This group accounts for 10 to 15 percent of HP’s new customers in the digital printing market, Basu says.

So are RIP-driven digital devices taking work away from offset presses, as TrendWatch says?

“Our HP Indigo press isn’t taking work from our offset press — it’s bringing in more work,” says Savino Schincaglia, Director of Technology and New Business development with Markham-based marketing communications firm Rayment and Collins. Since installing their HP Indigo 5000 digital press last February, the company has been able to offer a wider range of services, including hybrid printing: jobs that combine both offset and digital printing.

Demand drives the industry

What’s behind these changes is customer demand. Printing buyers from corporations, ad agencies, publishing firms and governments want smaller quantities of printed products, want them printed faster, and they don’t hesitate about looking for a better price from another printer.

At one time, even ten years ago, “short run” meant 1,000 to 5,000 copies; today, shorter runs are measured in the hundreds, or even fewer. Customers are asking for more smaller quantities to reduce their inventory costs, obsolescence of documents, or to align its documentation processes with “just in time” manufacturing.

“1000 to 2000 copies is the sweet spot for either our Komori or our HP presses,” says Schincaglia. However, a more important factor than quantity is the turnaround time the customer wants that determines which printing technology Rayment & Collins will choose. “You can put almost any print job on the offset press if you have enough time. We find, though, that with a 12 x 18 – inch four-over-four job, 1000 copies is about the point where you should go to a small press from digital output.” But that can change if the customer needs the work quickly. “Offset printing just takes longer, even with CTP—the ink needs time to dry after printing and so much more.”

Kodak Graphic Arts now identifies short runs as anywhere from 100 to 1000, right for “digital printing” on systems like its NexPress or the Indigo or iGen systems. Run lengths from 400 or so, up to 20,000, are ideal for direct imaging presses like its own DirectPress 5034 DI (based on Presstek direct imaging technology). Only at run lengths greater than 15,000 or so does Kodak admit that “traditional offset” is the most efficient choice. Yes, there is a great deal of overlap in those numbers, to account for differences in the varying complexity of printing jobs. And any “one to one,” or completely variable printing has to be done, of course, on a digital press, no matter what the length. (Long runs of completely variable printing would include utility bills, for instance.)

While run lengths are getting shorter, customers are also asking for greater variability in their printing jobs: more versions of documents, more regions for publications. Manufacturers and distributors are handling a far wider range of types of products and a far greater number of different products than ever before. Just think of how much more choice there is in your grocery store today, in terms of more choice between brands, but also more types of products of all brands. And all of them need documentation at some point.

Hence, a greater number of printing jobs, each with a smaller quantity of copies.

Turnaround isn’t what it used to be, either. Printing a medium-length run of 10,000 copies used to take the better part of a week, once prepress, platemaking, printing, drying, folding and binding were taken into account. But the digital presses and the response of the traditional offset printers have made that idea seem, well, quaint. “Customer demands are getting more extreme all the time,” says Paul Tasker of MAN Roland. “The offset printer is getting turned into an instant printer.”

“Customers are sending us final files for fast output, so short-run printing is getting into the on-demand world,” agrees Schincaglia.

But let’s not forget that printing technology can be the spark that starts these shifts in demand. Until the digital press came along in the early 90s, it simply wasn’t possible to produce 10,000 copies of a four-colour newsletter in a day, and four-colour brochures in quantities under 1,000 were prohibitively expensive. Now, print buyers know that no matter what their need in terms of colour, quantity, deadline and price, there’s a solution somewhere.

Short run and quick turnaround

Small presses historically have done the great majority of small jobs for small, medium and even large printing companies: all those little jobs that add up into such a huge volume. This includes product brochures, pamphlets, stationery, business cards, restaurant menus and placemats, folders and booklets and sales sheets and reports.

The price and running costs of small presses, as every printer knows, make them profitable for shorter runs and faster turnaround. But those definitions are changing, too.

Smaller presses are also getting more efficient, driving that minimum profitable quantity range ever lower. One of the main cost factors is waste from makeready — the number of sheets it takes a press to get “up to colour.” Those waste sheets have to be paid for, which drives up the price of short runs. Heidelberg’s Anicolor press, introduced at the IPEX trade show in the U.K. in the spring, can reportedly get up to colour in four sheets. This is a dramatic improvement in the waste, and hence the minimum cost of offset printing. If it catches on in the industry, and if other press manufacturers bring out similar technologies, this will again change the colour printing industry.

Technological response

Canadian printers large and small have responded to these pressures by investing in technology that makes them more flexible and more efficient. At the top end, the manufacturers of the largest web and sheetfed presses have added automation at the loader and delivery ends. Prepress has been totally transformed, almost totally automated to the point where it’s next to invisible in some print shops.

Meanwhile, copiers and other toner-based printers are getting better: better in output quality and in colour fidelity. Colour control and workflow software are largely responsible for boosting quality, but so are improvements in toners, pigments and in the internal technology that fuses toners onto the page.

Copiers like the Canon Laser Copier or the Xerox WorkCenters are being used for work that was once the exclusive domain of the offset press. “Better prepress software, colour control systems and workflow are improving the output from copiers,” says Paul Tasker, manager of MAN Roland Canada.

Smaller presses have gotten better, too. Many of the same advanced features migrated downward onto these less-expensive models: digital press controls, increased quality control and better prepress are making them more efficient and keep pushing colour output quality higher. CTP output and processless plates help drive costs down. New technologies such as automated washup and plate loading push makeready time shorter; getting the press up to colour takes fewer sheets so there’s less waste. Computer-integrated manufacturing (CIM) technology and processes, which use digital technology to run press controls at optimal levels, ensure that presses and other equipment run at peak efficiency.

 “Some of our customers can make a profit on press runs of a couple of hundred,” Tasker says. “It’s all about efficient makeready and getting jobs out the door”.

Overall, larger printing presses are being used to produce ever-shorter run lengths, quantities that only a few years ago would have had prohibitively high unit costs. Larger printing firms have been going after smaller markets, sometimes muscling out the mid-sized, locally-owned companies that once dominated that sector. The medium-sized printers have thus had to move downward to compete aggressively against the smallest printers, even the instant printer.

“A lot of printing companies are installing digital printers and copiers. Many of the largest printing companies have digital divisions today,” Tasker says. And instant printers with only toner-based copiers are also investing in small conventional offset presses.

But with better technology and more automated features available, many of the small printers have started to move “up-market.” The clear distinction between the sectors has broken down, resulting in a highly competitive market with, in many cases, depressed prices.

“Print buyers are happy to find that they can suddenly afford four-colour printing on a job that they previously could only afford to print in two colours,” says Betty LaBaugh of Presstek.

New workflows

This isn’t necessarily good for printers or for the overall printing market in Canada; in fact, Graphic Arts magazine found that for most categories of four-colour offset printing, Canadian printing firms are no more expensive that the most aggressive printing firms in Asia, who sell their services in North America solely on price.

But printers who invest in high-speed digital presses such as the Indigos, iGens and NexPresses can now go after a new market that simply wasn’t available before: variable printing. Fully variable colour printing for personalized direct mail was the whole reason that digital presses were invented. Don’t forget TrendWatch’s report that lower-end, and cheaper, RIP-driven colour laser copiers are doing sophisticated variable printing. This is actually a significant growth market for printers of any size.

“Your success in digital printing depends on the smarts you apply to the data you have,” says HP’s Basu. “How do you use or mine that data? That’s more of a marketing or information technology mindset, and the classic commercial printer doesn’t have that. “ He adds “the two technologies are definitely more complementary than competitive.”

More choice

On the upside, the printing firm that can take a strategic view has more choice available for satisfying those rising customer expectations: toner-based, RIP-driven electronic copiers with high-quality image output; high-volume digital presses; efficient direct-imaging offset presses; efficient and easy-to-use conventional, small-format offset presses; efficient and highly automated mid-size and large format sheetfed offset presses; and let’s not leave out a complete range of web offset presses.

All offer more automation, easier controls and higher quality output than before. Most important, they also offer the printing business the flexibility to allow it to respond to changing and increasing customer demands while remaining profitable.

New printing technologies from colour laser copiers to digital presses are actually opening up new opportunities for Canadian printers in variable printing, with fast response and hybrid printing.

“Having a digital press has actually brought us more work for our offset press,” concludes Rayment & Collins’ Schincaglia.

A customer’s purchase is overcharged by $10.00. The store policy is clear… “No cash refunds” so the sales associate refuses to issue the refund even though the mistake was hers. The customer was told he would have to accept a store credit or wait for a cheque to be issued by head office.

A customer wants to exchange a sale item she bought three hours earlier but the store policy states, “All sales are final.” The employee adamantly refuses to exchange the item for the customer.

What is the likelihood that these customers will buy from those stores again? I think it would be safe to say they won’t.

We all know that policies are instituted for a reason – to protect the company and reduce the risk and liability. However, in many situations, policies are put into place to manage a tiny portion of the business – people who look for ways to exploit your business or who try to get something for nothing.

Unfortunately, these policies are designed to control the minority rather than the majority. And, as a customer, I highly doubt that you like being told, “That’s our policy.”

There is no question that some people will take advantage of liberal and flexibly policies. However, my experience has taught me that these individuals are few and far between.

Case in point; when I published my first book, I offered an unconditional money-back guarantee to anyone who did not feel the concepts would help them improve their business. My publisher was distraught about this decision, telling me that I was setting myself up to be taken advantage of.

Later, I extended this policy to the products I started selling on-line. In the last four years I have sold over 7000 copies of my book and thousands of dollars of other products but I have only issued 2 refunds. Was the risk worth the reward? Absolutely!

In another situation, a participant in one of my public workshop expressed his disappointment because the program did not address his specific expectations even though full details of the program were provided before he registered. While I considered the possibility that he was trying to take advantage of me, I still offered a refund because it made good business sense.

The easier you make it for someone to do business with you, the more business they will generate, providing of course, you offer a good product at a fair price. I firmly believe that flexible policies can help a business increase their market share.

Here is something else to consider. When your policies change (which is not uncommon), don’t force existing customers to adhere to the new policy immediately after it has been implemented. Give them a grace period to help them adjust to the new procedures.

I also think it is important to give employees some latitude. I’m not suggesting that you allow everyone to make their own decision but I do know from experience that most people will make good business decisions if given the opportunity.

Many people are hesitant to do business with someone they have not purchased from in the past. And for good reason, they have been sold goods and services that have not lived up to their expectations. Reduce their concern and hesitation by making it easy and risk-free to buy from you.

One of my first clients expressed concern about doing business with an unknown vendor (me). When she asked what would happen if she wasn’t satisfied with the program I was going to develop for her, I told her that she wouldn’t pay. I even agreed to include this in my contract with her. Several years later, her company is still a client and I have since extended this policy to all new clients.

Another aspect to consider is the fine print you include in contracts. Why force your customers to review paragraph upon paragraph of text that can only be read with a magnifying glass. State your terms up front and believe that the more fine print you have, the more you are trying to hide from your customer.

I remember my wife talking to a computer company we were leasing from after we discovered that we had made two extra payments even though the lease had ended. She was told, “Your contract clearly states that you are responsible for contacting us to terminate the lease.” I have also seen this type of clause for extended warranty programs. Some companies offer a rebate on the warranty if you do not use it. However, the caveats usually require the customer to submit the original receipt within 30 days of the warranty expiration.

Evaluate the policies you have implemented over the years and look at them from a customer’s perspective. They may be costing you business.

Kelley Robertson, President of the Robertson Training Group, works with businesses to increase their sales and motivate their employees.
www.RobertsonTrainingGroup.com

In recent years I’ve been asked to reflect upon strategic trends that if heeded might better position printers for improved long-term viability. I’ve written extensively through the decades of leading-edge technologies, benchmark manufacturing practices and some of the most innovative product development initiatives and case studies. There’s a vital trend that’s becoming increasingly clear that could truly spell the difference between mediocrity and corporate stardom. And the cost is not a financial commitment. As a matter of fact, the investment is nominal. But it requires a concerted philosophical shift in management’s organizational mindset.

A month ago I was invited to participate in the Sunbelt Graphics seminars. Since it had been a few years since I was last in Atlanta, I decided to fly in a few hours early and visit my alma mater, colloquially referred to as the North Avenue Trade School. During my college career in the 1960s, I was active in the Georgia Tech Student Government. I went by the current SGA office and was fortunate to find the administrative secretary there who had been in that position for the past 17 years. During her time there she recalled that nearly half of the student body presidents had been women. Officers in virtually all of the more popular extracurricular clubs and organizations represented a disproportionately high number of females as well.

I already knew that females had grown to 38% of the student body in this school that only offered technical degrees in science and engineering. But I found it interesting that young women were assuming the elected leadership roles in a higher proportion than their population. As proud as I am to be a Ramblin’ Reck, I really don’t see this demographic shift as being unique to this former male-dominated institution.

In the new millennium, I have attended two annual Print Oasis Conferences. They are the world’s only dedicated conclave for print buyers. I spoke to Suzanne Morgan, President of Print Buyers Online (printbuyersonline.com) and organizer of this conference, about the gender statistics of this vital professional niche. She remarked, “Female print buyers are now 70-75% of the total. A decade ago it was just the reverse!”

Lets look briefly at broader statistics. The National Foundation of Women Business Owners reports that women-owned firms, about 9.1 million companies, represent 38% of all firms in the United States and generate $3.6 trillion in annual sales. This has more than doubled in the past 12 years according to aphradmedia.com.

Internationally, women-owned companies are between 25-33% of the total business population. At the conventional 2%, which is the print proportion of total corporate revenues, these new-generation female entrepreneurs buy over $700 million of printing each year.

A couple other studies are worth considering. Since 1985, women have comprised over 40% of all law students. However, in 2001 their enrollment proportion surpassed men. In a 1998 study by Women Entrepreneurs, 51% of women said a desire for flexibility was the top reason they left their previous employer. In the same year Two Careers, One Marriage conducted another study indicating that 49% of women and 23% of men took advantage of formal flex-work arrangements offered by employers.

Lets return to the structure of the printing and graphic arts industries. While actual statistics are difficult to come by, in my experience, women are increasingly assuming a higher proportion of electronic prepress jobs, particularly in the smaller commercial printers and in-plant printers. This is because a higher proportion of them have commercial art design degrees and were the quickest studies for these emerging technologies. Larger printers meanwhile, may have their electronic prepress departments dominated by former Scitex operators who were all male.

Another source of technical skill growth, again for the small to medium-sized commercial printers and in-house prepress operations, has been the cadre of freelance designers. Virtually all are female and have worked at home to be able to be near their infant children or have more flexible work hours around other family priorities.

This computer-savvy group has been strongly considered as natural employee candidates when these smaller firms have expanded into digital printing and wide-format digital printing. Substrates and stock variations are easier to teach to electronic designers, than are computer networking and operating servers to lithographic pressmen.

This career progression is easy to follow and predict. PC-based database management software and expertise seems to be easier to learn by many of these former commercial design artists as the printers diversify into internet-to-print applications. Who then is the most logical candidate to sell the variable data printing and multi-media programs? Is it easier to teach the lithographic print salesman d-base file delimiters or the female computer operator who has a pleasant and helpful personality but has never sold before? That transition is not a huge stretch either, as most of these female computer and software experts have worked very effectively in customer service driven by that product development initiative.

Female leadership is finally being acknowledged in the printing industry. Printing Impressions has highlighted the highest-ranking female corporate officers at printing firms in annual feature articles for a number of years.

The magazine’s listing of the largest printers in North America will show one or two female CEOs out of the top 100 firms.

The National Association for Printing Leadership inducted their first female Chairperson of the Board this year in Joan Davidson, CEO of The Sheridan Press. The recently elected Chairperson for the National Government Publishing Association (an organization of State Printers) is Deborah Messina of Delaware. However, the fact still remains that the “good-old-boy network’ reigns supreme in Ben Franklin’s industry, which could pose a dilemma for a number of unenlightened firms.

This is not to suggest that this army of female print buyers mentioned earlier would discriminate against all of these print sales guys. After all, the results of their purchasing alliances must show good value, consistent quality and quick turnaround times.

On the other hand, if they went on a visit to qualify a new prospective printer and met the top three officers, at least one of which was female, female department heads in customer service, prepress, mailing and fulfillment, do you think they would categorize this printer as a good old boy throwback, or a potentially new millennium graphic solutions vendor? They might just give them the chance to bid on and produce a challenging project to test out their communications skills.

As my clients and publishers know, I don’t write many sales articles. I leave that to the master, the “Manna Man.” On the other hand, considering that he has three daughters, each of whom is quite sharp, I’m surprised that Harris DeWese has not written one of his popular monthly epistles on the print sales force of the future – one that’s not only empathetic and sensitive, but has more than a single storefront female among its group.

It was suggested earlier that this organizational human resource dynamic was really one requiring a philosophical mindset shift. With colleges and commercial design schools graduating more females than males and females showing increasing professional ambition, it might be as simple as top management being open and receptive to the best candidates for the job.

On the other hand, if your corporate policies are not sensitive to the personnel flexibility policies expressed in the earlier surveys, you might best wait until one of these female entrepreneurs offers to buy your company and get it turned around!

C. Clint Bolte & Associates, Chambersburg, PA.T: 717-263-5768  F: 717-263-8945E: cbolte3@comcast.net

An accountant visited the Natural History Museum. While standing near the dinosaur, he said to his neighbour: “This dinosaur is two billion years and ten months old.”

“Where did you get this exact information?” his neighbour asked.

“I was here ten months ago, and the guide told me that the dinosaur is two billion years old.”

There are a lot of “experts” out there. You usually find them holding court in coffee shops or bus terminals. They have lots of time on their hands and they’re full of information. Much of that information is obviously useless or without any substance to make it matter.

Most people in business, particularly business owners, are indeed experts. If you’re in business, I’d wager that you’re an expert in your business. There’s likely very little that anyone can tell you about your business or what you need to do in order to survive in your industry.

When I first started out as a fledgeling accountant (seems like a lifetime ago), I made the horrendous mistake of telling a client that I knew more about his business than he did! My client was a baker, the second generation of an immigrant family that had built up a serious business.

Operating a bakery is one tough business. You’re generally up before the crack of dawn, lugging sixty pound bags of flour and dumping them into the hopper. Before any alarm clock has even thought of rousing its sleeping owner, the baker has already put in a full day. Fresh pastries fill the display cases and beckon street traffic, together with the scent of fresh coffee.

The bakery trucks have been filled hours ago with racks of breads, buns and pastries, and have already negotiated traffic to make their deliveries while the breads are still steaming fresh from the ovens. You put in a full day before most people brush their teeth in the morning, then before you go home at the end of your day, you prepare for tomorrow, when you’ll be back at it. It’s a very personal business, where human hands still touch every product, where a skilled eye ensures that each pastry is prepared to perfection, consistently, each day. The alternative is disaster.

There’s no doubt that my client was an expert in his business and it was an error on my part to even suggest that I knew more about his business than he did (obviously the exuberance of youth).

However there is a distinct difference between being an expert in your business, and being expert at doing business. The environment in which we do business is complicated and dangerous. For business owners, it comes down to what you don’t know, that can hurt you.

For my baker client, he continued to operate the same way his late father had, simply using tried and true recipes to create tasty and popular breads and pastries. He also continued to operate simply under the form of organization as a proprietorship, an unincorporated business. He never thought about the possibility of a lawsuit from an errant customer who had an allergy to one of his products! He never thought of the possibility of that lawsuit costing him his business, his livelihood, his home and his reputation. My baker client knew how to make bread, but did he know how to keep the bread he made?

He didn’t consider the possibility, until I alerted him to it, that he might save a great deal of tax, defer paying a great deal of tax and conserving cash flow by incorporating several companies. One company could hold the assets of the business and lease them back to the operating company, thereby protecting those assets while allowing for tax deferrals and cash flow savings.

Another company was incorporated to handle employees and payroll. The employee and payroll company ensured that the business assets were separated from possible claims emanating from the director’s personal liabilities and claims from errant employees, or worse.

No matter how careful you may be in your business, there always exists the possibility that an employee may be injured. In an instance like that, the employer is generally deemed to be guilty until he proves himself innocent. The objective of a business structure is to ensure that your business can continue. One cannot know what tomorrow may bring, but by planning today, you can ensure that you will endure through any claims, baseless or otherwise. The point is to protect your ability to earn a livelihood and to ensure that you’re able to look after the people who depend on you and the success of your business.

I made my client aware of the possibility of sheltering his personal assets by creating a legal structure whereby his accumulated wealth was separated from his business activities. This pleased his wife to no end, so that she could sleep at night secure in the knowledge that her home was safe. Sometimes there is no price one can put on the peace of mind that a little planning can bring.

Most business owners need to rely on advice from experts in order to be an expert at doing business. As a business owner, you need a good accountant and a good lawyer to help you be an expert at doing business, so you can be expert in your business.

Sid Karmazyn is a Chartered Accountant, author and speaker, who lives and works in York Region. Your comments are welcomed.
T: 905-771-3813F: 905-771-3810