3 ways to drive profitability

While most business owners want to increase profits, most do not have a plan to do so. Some say they will increase profits by boosting sales. But how will you boost sales? Will you hire more sales-people? Can you afford more sales-people? Will you leverage additional sales channels through which you can sell your products or services?

Will you try and help any customer that comes to you? Can you afford to do everything for every customer? Do you know which products or services are worth your time to produce or deliver? Do you know which products or services are actually profitable once you take input costs, overheads, salaries (Yes this includes your salary as well), delivery and other costs into account?

Will you perhaps expand to another location or add additional products and services? What will this entail? 

It seems that no matter what the initial idea, some thought and planning may be required to make this a reality. This “plan” is often called a business strategy. It could be either a strategy for a specific functional area such as marketing or sales, or alternatively, it could be a complete and comprehensive business strategy. Developing a business strategy can be difficult but it is often the difference between success and failure. If your business does not have business strategy, speak to someone who can help you create one.

Creating a niche for your business is important in making your business different from your competitors and does not force you to compete with large companies with scale, that can offer the same products or services at a cheaper price. Every business should think like their target audience or customers.  Know their exact needs, motivators, wants, dreams, goals, and interests. Find out what is valuable to your customers and what they are willing to pay a little extra for. Ever wonder why Starbucks (a normal coffee shop) was able to differentiate enough to grow much faster than their competitors? 

Finally, it is important to create internal targets and goals. This helps to determine how well you are doing. One way to measure progress toward achieving your business goals is to use key performance indicators (KPI’s). Another is to use customer satisfaction as a benchmark for external performance and success.

KPIs provide us with an immediate snapshot of the overall performance of our businesses. To be used effectively, we need to measure and track the key performance indicators crucial to the success of our business such as profit margins per product category, and total sales. They also play a key role by providing vital decision-making information. (Do we sell more of product A or Product B? Which one is actually more profitable?) 

Customer satisfaction can be measured using the Net Promoter Score (NPS) which we discussed in our last article. Have you done this for your business yet? How high is your Net Promoter Score?

“Profitability is coming from productivity, efficiency, management, austerity, and the way to manage the business”-  Carlos Slim

Next steps for Toronto transit

On October 16, Toronto City Council voted to launch a $28.5 billion transit plan that will be partially funded by the provincial government. Council’s decision happened after the Premier backpedalled from his original agenda to control the city’s transit system. City Councillors were widely opposed to the upload of the TTC. On November 4, Premier Doug Ford, Ontario Minister of Transportation, Caroline Mulroney and Mayor John Tory made an announcement about the plan.

Mayor Tory said, "Today's announcement is a joint commitment to getting transit built together. I will continue to work tirelessly, as I have done over the last five years, to make sure all three governments are at the table moving transit forward as quickly as possible."

The plan includes the Ontario Line, a downtown relief line to be completed by 2027, and an improved three-stop Scarborough Subway Extension to be finished by 2029-30. It also incorporates the Yonge North Subway Extension to York Region, to be completed by 2029-30, and lastly a light rail addition to the Eglinton West Crosstown to be finalized by 2030-31.

The Premier initially declared his plan to build the Ontario Line back in April, however his pitch did not confirm that he would incorporate the Mayor’s Smart Track approach at that time. 

The Premier has called on the newly re-elected Prime Minister Trudeau to further his investment in the future of Toronto’s public transit.

"Working with all three levels of government, we are clearing the roadblocks and getting shovels in the ground - now we are asking the federal government to commit to increasing their contribution and funding their fair share," said Premier Ford.

The federal government has an opportunity to verify its commitment to the plan by providing an updated breakdown of its contributions. Toronto will re-allocate nearly $3.8 billion in the federal funding that they have already received to build transit. Minister Mulroney reinforced that the existing subway system would remain the City's responsibility to maintain, while the province would undertake partial responsibility of the four extensions, which includes capital costs.

Shelagh Pizey-Allen, from the public transit advocacy group, TTCriders, highlighted the importance of having guaranteed timelines from the province and implementing integrated fares to ensure equitable access to transit. She also reinforced the value of public consultations to provide inclusiveness in an on-going conversation about Toronto’s transit system.

"Before City Council rubber-stamps a deal with Premier Ford, they must guarantee that any new transit lines are built without delay, integrated with the TTC for a single fare, respect community concerns with meaningful public consultation, and be publicly delivered and owned by the TTC," said Shelagh Pizey-Allen.

While breaking ground is seen as progress in a City that needs transportation infrastructure sooner than it can be built, Torontonians are left speculating whether these extensions will be built in time to welcome pending population booms. Given that the Premier has cutback on public services, residents are left hoping that the province will honour their promise to improving public transit in a timely, cost-effective approach.

Meet your candidates for York Centre

Election Day is on Monday, October 21. Don't forget to vote for the candidate of your choice! Please check out the positions from the four parties below. Learn more about where to vote and what you need to be eligible at www.elections.ca!

Our buses are overcrowded and bus tickets are expensive

Waiting for the 36 Finch bus can make one ponder the meaning of life. It is never quick or an efficient use of time. Bus service is so unreliable, that if car insurance premiums were not so expensive in our area, most people would choose to drive instead of taking public transit. 

The majority of bus routes in Downsview are unreliable and overcrowded during the morning and afternoon rush. This reality leads to more cars on the road and more congestion. In case you have not heard about this update in local news, Toronto has the longest commute of any City in North America. [1]  

If taking public transit was more affordable, that would at least make the experience of longer than normal wait times more reasonable. However, Toronto is also known for having one of the most expensive bus fares in North America. An individual bus ticket in Toronto is one of the top five most expensive fares in general and our monthly transit pass is the most expensive option in the continent. [2]

Even though more commuters are added to our roads each year, it is not surprising that the growth of TTC riders has slowed down recently. Commuters will always choose another option if it's offered to them for a fair price. People downtown, for example, have taken to cycling in very large numbers. A bicycle is the fastest mode of transportation for short trips in the city's core. That being said, up here in Downsview cycling is not a realistic way to get to school or work year-round if you have far to go.

The way to get more cars off the road is not complicated, even if a series of successive governments have made it seem so. Building more reliable transit networks and making it affordable has worked everywhere an appropriate investment has been made.

That being said, here in Ontario successive Conservative and Liberal governments have reduced their share of transit funding, downloading the cost to rate payers and municipalities. Toronto gets the smallest share of higher level government funding out of every major city in Canada. That is the real reason why we take so long to build any new transit lines, nobody is paying for them. 

It took over 20 years to build the York University subway extension. By the time it's finished, it will take a similar amount of time to build the Finch LRT. The improvements are coming too slowly and without the adequate funding required to make them work properly. 

Municipalities do not pay the bill for public transit expansion on their own. In other cities, higher levels of government step in to pay for the big projects and subsidize the trips for commuters. That type of investment makes transit more accessible, creating an incentive for people to leave their cars at home. The less cars we have on the road, the better. Helping people get to work more efficiently improves their quality of life because they can reallocate those wait times towards other priorities, like spending time with family.

Accessible and affordable public transportation options eases gridlock and boosts the local economy. In Toronto, we have not had a higher level of government involvement for decades, and you can see the lack of investment every time you are out there waiting for the bus. 

[1] https://www.cp24.com/news/toronto-has-worst-commute-in-north-america-sixth-worst-in-world-study-1.3983200 

[2] https://www.blogto.com/city/2019/01/how-ttc-fare-compare-toronto-north-america/ 

Redevelopment of Wilson Station's parking lot - the saga continues

On August 14, 2019 York Centre Councillor James Pasternak hosted a working group meeting to discuss the proposed redevelopment of Wilson Station’s Main Commuter Parking Lot at 50 Wilson Heights Boulevard. The lot was deemed ‘surplus’ land by the City’s development agency, CreateTO, and was selected by Toronto City Council to include in the affordable housing initiative, Housing Now. 

The meeting was organized by the Councillor Pasternak’s office in response to concerns raised by community members related to the loss of parking at the June 2019 Housing Now Community Meeting.   

During the meeting, City of Toronto Planning and CreateTO staff provided an overview presentation. It included: a recap of the Housing Now proposed development; a summary of City Council direction on parking for Housing Now sites; an analysis of existing usage of the parking lot; and three potential parking scenarios being considered in any future development. 

To justify the selection of the Wilson Station lot, City staff presented some helpful data. For instance, they provided the result of a recent licence plate survey, which indicated that of the total 866 parking spaces, only 25% (219 spots) are used by York Centre residents. The remaining 75% are used by folks outside of the community, including the 41% of spots which are used daily by commuters from the Greater Toronto Area. 

CreateTO staff also indicated that rebuilding all 866 spots underground a future development would be unfeasible given their estimate that each space would cost $85,000 ($75 million to build 866 spots). Adding in financing and operational costs, the public would need to pay $35+ per day in order to break even.

City staff revealed that future redevelopments would include one of three parking scenarios for community members: 1) provide exclusive public parking (no dedicated residential parking space); 2) provide shared parking (residential and public parking space); and 3) provide no public parking.

Although only a dozen community members attended the meeting, participants asked detailed questions and provided clear feedback to the Councillor and city staff. I’ve summarized some of the community’s feedback below. 

General Feedback 

• Participants acknowledged that both affordable housing and commuter parking are very important issues and the community should not be presented with options that make them feel like they must choose one or the other. 
• Community members voiced that the TTC needs to be part of this discussion. There were participants at the meeting who would consider taking transit rather than driving to the station, however many people felt that TTC service is unreliable and infrequent.
• Some felt this is a safety concern – especially at night when some have to wait alone at a bus stop.

Process Feedback 

• Participants  expressed that low turnout at the meeting should not be taken as a sign of a lack of concern about this issue. Others in the community are interested and have concerns but were either unable to attend or were not aware of the meeting. 
• Participants urged the Councillor and CreateTO to do a better job at publicizing community meetings, including advertising in the local newspapers; posting a development sign in the parking lot (while has since been done); and handing out flyers at Wilson Station.

Parking Scenario Feedback 

• Participants suggested removing a scenario all together (i.e. “provide no public parking”) since it was considered unreasonable and unfair to the community.  
• Participants urged city staff to keep some or all of the existing surface lot by reconfiguring the development plans or moving the Housing Now site to a new location like Downsview/Sheppard West station.  
• Some community members expressed interest in expanding and improving the parking lot at Downsview/Sheppard West station to accommodate the loss of parking at Wilson Station.
• Participants also offered some creative solutions. Such as, using a permit system to preference local residents in public parking spaces built in future developments at Wilson Station and discouraging the use of the lot from people outside of the area by increasing the cost of parking at Wilson Station (by a couple dollars), possibly as a pilot project.

There was another Housing Now Community Meeting on September 16^th  from 6 P.M to 9 P.M at the Church of Resurrection (1 Tippett Road). I will continue to cover this issue over the coming months – feel free to read my previous articles to learn more.

Pensions in Canada are leaving seniors in poverty

In July most seniors on Candian Pension Plan (CPP) saw an increase of only $12 to $16 a month – not enough

It is hard for many of us to imagine that Finch Avenue was once a dirt road, lined with countless apple orchards. Back then, the City of Toronto was much smaller. The area was known for its farmland and cottage country bungalows. Those who remember those days would have been contributing to their Canadian Pension Plan for decades before retiring.

Many of our neighbours have lived in the Downsview area for over 40 years, making them the original homeowners. While they are retired now, they continue to be active leaders on their own streets and at local community centres.

The CPP was created in the 1960’s as a response to people living longer and the rising level of poverty conditions for seniors at that time. The Old Age Security and Guaranteed Income Supplement were added to ensure a base level of income for all seniors. The system was designed to protect people from destitution in their old age and to give them both dignity in life and dignity in their hard-earned retirement. 

Today, our system is not keeping up with the realities of modern life. Most young people are aware of the difficulties of buying a home in the current real estate market. What many people do not realize yet, however, is the difficulty that many seniors are facing as rents rise. To illustrate the problem, a person living off of CPP and OAS could very well make $20,000 a year. A one-bedroom apartment in our neighbourhood now costs around $1500 per month, or $18,000 per year. Many who rely on their pensions live on the knife’s edge of poverty. 

Pensions go up on July 1 of every year, but most seniors only saw a monthly increase of $12-$16 per month. With real estate prices sky-rocketing and rents following suit, many seniors can barely afford their homes anymore in addition to keeping up with other living expenses. The problem is likely to get worse, as we are the only major country without a plan to deal with the realities of an aging population. 

The beauty of Canada has been its caring disposition, tolerance and acceptance. This is what makes our country one of the best places to live, and has created some of the highest standards of living in the world. That being said, the current government has done little to change make life affordable for seniors and they have no plans of making any significant changes. Seniors have it too hard and we are not doing enough to help them.