Th e entrepreneurial life is rife with potential pitfalls. You

can pour your heart and soul (and life savings) into a venture,

do all your due diligence, toil 80-hour weeks, and just when

you’re on the verge of a breakthrough, a competitor sweeps in

and decimates your market share. Or a key vendor declares

bankruptcy. Or a partner defects with your top client. Or a new

law undermines your viability.

Needless to say, a lot can go wrong - and that’s why the least

you can do is avoid the not-so-obvious mistakes that have

derailed so many (call it the "best odds" strategy for entrepre-

neurial success).

"Th ere are certain predictable mistakes that will derail a

new company," says Panaggio, author of Th e Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge.

Many of them have to do with misguided attempts to mini-

mize risk. Others are based on misconceptions about how the

business world works, what motivates customers, and so forth.

And here’s the thing—many of them seem perfectly harmless,

even smart, on the surface. Yet when evidence shows something

is a mistake—a proven mistake—you must avoid it.

Don’t assume that because it doesn’t feel like a mistake that

it isn’t. And don’t believe that your case is somehow diff erent

or special because it isn’t.

Together with several partners, Panaggio has built two thriv-

ing companies: Direct Mail Express (which now employs over

400 people) and Response Mail Express (which was eventually

sold to an equity fund, Huron Capital Partners).

Panaggio wrote Th e Risk Advantage to help entrepreneurs

face the many predicaments and crises they’ll encounter dur-

ing their lives and to help formulate their leadership style and

business strategy.

Get caught up on all the latest industry news 4

Read up on some critical tenants of cash fl ow

management for your small business 8

We asked suppliers and distributors to share

their views on our industry's future 16

Statistics Canada's reports on wholesale and

retail sales fi gures for period ended May'14 38

WHAT'S INSIDE

13 Big Mistakes Entrepreneurs Make Some of the costliest mistakes are often disguised as smart business decisions.By Tom Panaggio

A Tristan Communications Ltd. Publication Volume 21, Issue 4

IMPRINT CANADATHE MARKETING AND INFORMATION SOURCE FOR IMPRINTABLE PRODUCTS

Excitement Building for 16th Annual Calgary Imprint Show

Celebrating its 16th year in Calgary, the Western Imprint Canada Show returns

on October 17 & 18, 2014 with another event

jam-packed with the hottest new off erings

from the industry's leading suppliers, showcas-

ing apparel, promotional products, decorating

equipment, accessories and supplies.

Nearly 90 suppliers have already reserved

their exhibit space to showcase their innovative

products and services to the more than 1,100 anticipated decision-making execu-

tives who will attend this integral event.

Attendees will not only benefi t from discovering the newest products available,

but can also take in educational seminars from renowned industry experts cover-

ing topics such as social media marketing, embroidery and heat printing.

In addition, exciting contests will make some attendees big winners! One lucky

attendee will drive off with the functional and stylish Amego Cyclone Electric Bike,

valued at over $1,000. Also, the company that brings the most qualifi ed attendees

to the Show will win a special catered staff party at their offi ce!

For more information on the Western Imprint Canada Show, please turn to page

10 or visit www.ImprintCanada.com.

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So Much For Freedom 55Th e Globe and Mail has been publishing a series of articles of

late entitled Agenda 2020, which aims to enlighten organiza-

tions with approaches to creating strong and healthy businesses

which can fl ourish beyond the year 2020.

One article in particular - written by Josh O'Kane - questioned

David Foot, Professor Emeritus of economics at the University

of Toronto and bestselling author of Boom Bust & Echo: Profi ting

from the Demographic Shift in the 21st Century; and Marcel

Boyer, Professor Emeritus of economics at the Université de

Montréal and co-author of the C.D. Howe Institute report, Th e

Main Challenge of Our Times: A Population Growing Younger.

Foot and Boyer were asked about the demographic challenges

that Canadian businesses will face over the next six years as

baby boomers decide how much of their time they still want

to devote to the workplace upon reaching retirement age, as

well as what impact their decisions will have on businesses and

government policies. Th e professors were also asked about the

impact that 20-somethings entering the work force with relatively

no industry experience will have on the Canadian economy.

Both panelists agreed that the Canadian labour force will shrink

as fewer young entrants join the workforce, thereby providing

future retirees with extended opportunities to remain employed.

Further views expressed in the article highlighted the needs

of businesses to overcome the logistical challenges of having

older employees work varying schedules and government

policies needing to be reviewed in order to accommodate

rotating benefi t and contribution schedules for retirees who

continue to work part-time.

Th e most important solution tabled by the panelists to ease

and remedy the 2020 challenge of a reduced labour force was

to create a strategic fusion between the 60 year-old knowledge-

able industry veteran and the 25 year-old tech-savvy individual

in order to create an environment of knowledge, idea sharing

and increased productivity.

Th is concept is no diff erent from when I fi rst entered the pub-

lishing industry more than 30 years ago. I was mentored by

a man in his sixties that was looking to pass on his industry

knowledge and experience.

Creating a dynamic team

that brings together diverse

skill sets is far and away the

best method for employers to

maximize benefi ts and extract

the best of both worlds.

Sound principles remain

sound. Th ey have withstood

the test of time for a reason

because they are proven to

work and provide guidance.

Employers would be best-

served not to hastily under-

value long-standing prin-

ciples and concepts that have

worked well for so long, simply

because they are not "shiny

and new."

TM

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JULY/AUGUST 2014Follow us: twitter.com/imprint_canada

1 13 ENTREPRENEURIAL MISTAKES CONTINUED PG 6

4 INDUSTRY NEWS 8 CASH FLOW MANAGEMENT TIPS

10 WESTERN IMPRINT CANADA SHOW

16 FORESIGHT FOR THE FUTURE

38 BY THE NUMBERS

18 WEARABLES SHOWCASE

34 AD SPECIALTY SHOWCASE

36 SUPPLIES & EQUIPMENT SHOWCASE

Imprint Canada is published six times per year by Tristan

Communications Ltd. Th e contents of this publication may

not be reproduced either in part or in whole without the

consent of the copyright owner. Th e views expressed in this

publication are not necessarily those of the publisher. Request

for missing issues are not accepted aft er three months from the

date of publication.

TRISTAN COMMUNICATIONS LTD.Publications mail agreement no. 40025740Return undeliverable mail to:

190 Marycroft Avenue, Unit 16,

Woodbridge, Ontario, L4L 5Y2

Email: shows@imprintcanada.com

ISSN: 1480-1884 GST Registration #: RT892913294

IMPRINT CANADA

PUBLISHER Tony Muccilli : tony@imprintcanada.com

PRODUCTION MANAGEMENTAdriano Aldini : news@imprintcanada.com

CONTRIBUTORSTom Panaggio, Adriano Aldini

MARKETING COORDINATORSteve Silva : feedback@imprintcanada.com

OFFICE ADMINISTRATORMaria Natale : shows@imprintcanada.com

GENERAL INQUIRIESfeedback@imprintcanada.com, (905)856-2600

ADVERTISING SALESTony Muccilli (Toronto)

Tel: (905) 856-2600 Fax: (905) 856-2667

July/August 2014 - Volume 21, Number 3

IMPRINT CANADA

| July/August 20144 IMPRINT CANADA

Industry News

American Apparel, Bella+Canvas and Fruit of the Loom now available at Ash City/alphabroder CanadaAppoints Tom Alavi as Dedicated Sales Representative for the GTA west territory

Ash City, now part of the alphabroder family, is pleased to announce the availability of American Apparel®, Bella+Canvas® and Fruit of the Loom® in Canada. � is makes Ash City/alphabroder Canada the only national distributor to carry American Apparel® in the Canadian corporate and imprintables market.

alphabroder’s recent USA partnership with retail power-house, American Apparel®, has now extended across North America, with over 40 styles now available at Ash City/alphabroder Canada from the brand widely recognized for its domestically-made, fashion-forward styles, and com-mitment to corporate responsibility.

“We are extremely excited to be launching yet another outstanding collection in the Canadian marketplace,” said Doug Hayes, President of alphabroder Canada. “A� er a suc-cessful launch this past April with Alternative®, Gildan® and Jerzees®, we continue to add stellar brands to our portfolio

of imprintable apparel. Our goal remains the same to our valued customers – to become their one apparel source based on our service, assortment, delivery and convenience.”

Stay tuned for additional styles from Ash City/alphabro-der Canada’s private labels, as well as a brand new Fall 2014 catalogue for both Canada and the USA coming in August.

New GTA West Sales Rep Ash City/alphabroder also announced that Tom Alavi

has accepted the position of Dedicated Sales Representative, covering the Greater Toronto Area (GTA) west territory.

“We are thrilled to appoint Tom as the new face of Ash City/alphabroder Canada in the GTA west territory,” said Craig Ryan, Vice President of Canadian Sales, Ash City/alphabroder Canada. “I am con� dent he will provide unparalleled service to his customer base as alphabroder Canada becomes the end-to-end apparel solution for the promotional apparel industry.”

Technosport Canada moves to a new, larger facility

In accordance with Technosport Canada's philosophy to continue to best serve its customers with product, inventory and service, the company is proud to announce that it has moved its Toronto o� ce and distribution centre.

Technosport's new larger and better location o� ers expanded space and resources, increased convenience and wider service possibilities to its valued customers.

E� ective Monday July 21, Technosport Canada's new address is: 600 Zenway Blvd, Unit #4 , Woodbridge, Ontario, L4H 3M9Tel: (905) 856-6980; Fax: (905) 856-7425

Gildan Activewear acquires Doris Inc. Gildan Activewear Inc. (TSX:GIL)(NYSE:GIL)

announced a de� nitive agreement to acquire Doris Inc. (Doris), a marketer and manufacturer of branded sheer hosiery, legwear and shapewear products to retailers in Canada and the United States.

� e initial purchase price is approximately $110 million (all � gures CDN), with possible additional contingent payments of up to $10 million, which are based on the achievement of targets for growth in sales revenues. � e purchase consideration will be paid in cash and will be � nanced out of Gildan's bank credit facility.

Doris is the third largest marketer of branded ladies leg-wear in North America and the market leader in Canada, with products sold throughout all retail channels of dis-tribution. Its company-owned brands include Secret®, one of the most recognized sheer pantyhose brands and a growing brand for shapewear in Canada, the Silks® brand, and � erapyPlus®, which provides therapeutic legwear solutions for medical conditions and everyday activities. Doris also markets its brands including Kushyfoot® and � erapyPlus® in the U.S.

Revenues in the U.S. account for close to 30 per cent of Doris' total sales. In addition, Doris has brand licenses and supplies selective retailer private label programs.

Revenues of Doris for the year ended March 31, 2014 amounted to approximately $95 million, and adjusted EBITDA for the same period amounted to approximately $14 million, so that the acquisition is expected to be immediately accretive to Gildan's earnings in � scal 2015.

� e acquisition of Doris immediately provides Gildan with a strong sales organization and platform for retail dis-tribution of the Gildan® and Gold Toe® brands in Canada. � e acquisition also further enhances the Company's consumer brand portfolio within its existing U.S. retail distribution and positions it to increase its penetration in the basic women's apparel markets. It will position the Company for entry into the ladies intimates' category and, in addition, further broadens the Company's retail distri-bution network in the United States due to Doris' strong presence in the food and drug channel.

Doris' head o� ce is located in Montreal, Quebec. Doris operates a distribution facility and a sheer hosiery manu-facturing facility with knitting, dyeing and packaging capabilities in Montreal.

Approximately half of Doris' production is vertically-integrated. Doris' management team, including the found-er's son, President and Chief Executive O� cer Jack Hasen,

will join Gildan and contribute to the further development of Gildan's Canadian retail branding strategy.

American Apparel to receive $25 Million in supportCharney given role as Strategic Consultant

Midland Clothing has movedE.Star International / Midland Clothing has moved to a new facil-

ity. � e company's new o� ces are located at: 259 Steelcase Road, Unit #2, Markham, ON, L3R 2P6. � e company can be reached at (905) 754-0088 or by visiting www.estarinc.com.

American Apparel has reached a Nomination, Standstill and Support Agreement with Standard General L.P. and company founder Dov Charney, the bene� cial owners of nearly 44 per cent of the company's outstanding stock.

Under the agreement, Standard General will provide up to $25 million in immediate � nancial support to American Apparel, the company's board will be reconstituted, and an independent board committee will be formed to over-see the continuing investigation into alleged misconduct by Charney.

Standard General a� rmed its support for American Apparel's sweatshop-free, made-in-USA manufacturing philosophy and commitment to maintain the company's manufacturing headquarters in Los Angeles. Standard General and Charney also agreed to certain standstill and voting limitations through the company's 2015 annual meeting.

Other key points of the agreement include:• A reconstitution of American Apparel's board of direc-

tors, in which � ve of the seven current members, including Charney, will voluntarily step down. � e departing direc-

tors will be replaced by two new directors, chosen jointly by Standard General and the current board, and three new directors designated by Standard General. All but one of the new directors are expected to be independent directors and una� liated with either Standard General or Charney. � e board will continue to be led by its current co-chairmen, David Danziger and Allan Mayer.

Charney will not serve as a board member or be nominated by the company or Standard General as a board member.

"� is truly marks the beginning of an important new chapter in the American Apparel story," said Mayer. "With the support of Standard General, we are con� dent the company will � nally be able to realize its true potential."

"� e last few weeks have been di� cult ones for the com-pany, and we are especially indebted to our special commit-tee members Robert Greene, Marv Igelman and William Mauer, who have worked so tirelessly on the company's behalf," said Danziger. "Any success the company enjoys in the future will in large part be the result of their e� orts."

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Emblemtek_Imprint_2014-07_Reflective_out.pdf 1 07-16-14 3:10 PM

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Here are 13 mistakes entrepreneurs should avoid:

1. Playing it too safe. Yes, risk is scary. But the truth is, unless

you continually embrace risk, your business will never emerge

from mediocrity. Risk is the only thing that can give you the

edge you need to distinguish yourself

from the competition and reach your

full potential, and that’s worth making

a few mistakes along the way.

Experience has taught me that

some of the biggest mistakes you can

make are the result of overly cautious

decision making. You might think

that you’re covering your bases, or

taking the prudent path forward, but

in reality you’re sabotaging yourself.

Sometimes that sabotage might cost

you "only" a customer or a sale, but over time a few customers

here and a few dollars there can lead to you having to close

your doors permanently.

2. Holding resources in reserve. Putting it all on the line is a

frightening prospect. Th at’s why most entrepreneurs under-

standably want to keep some cash in reserve for a rainy day.

Giving up your hard-earned money is the ultimate risk. To

pour your life savings into an entrepreneurial pursuit is like

walking the tightrope without the benefi t of a safety net. But

even though the commitment is substantial, you need to fi nd

the courage to take that fi rst step into the void.

Likewise, don’t skimp on the time and energy you pour

into your business. Th ey are even more precious than money

and even more costly to waste. Never forget that a successful

entrepreneur’s commitment is personal; it includes an invest-

ment of money, time, and loss of opportunity from forgoing

other opportunities.

Th e life of an entrepreneur is not glamorous; it can be stress-

ful, and you probably won’t be as successful as you’d like if you

try to hold back, hedge your bets, and settle for "good enough."

3. Not allocating a marketing budget. A business void of a

long-term and consistent marketing eff ort is doomed, espe-

cially in a global economy that is becoming fl atter and more

competitive by the day. Skimping on marketing is not the

way to save money because you’ll quickly fi nd yourself out-

publicized and out-advertised by the competition.

At Response Mail Express (RME), we actually used market-

ing risk as a competitive edge. Anyone wanting to become a

potential competitor had to be willing to match our market-

ing investment and commitment—just doing the bare min-

imum wouldn’t have been enough. As a result, competitors

were forced to divert resources

from other areas of their business

to keep up with RME’s aggressive

marketing strategy. And since most

of our competitors weren’t willing

to embrace the risk of marketing

at our level, they were never able

to seize our market share.

I do want to acknowledge that

accepting marketing risk also means

recognizing that some degree of

failure is both inherent and neces-

sary to fi nd your right path.

4. Keeping it all business, all the time. Many protective busi-

ness owners live by the mantra - It’s not personal; it’s business

- because they assume that customers have unreasonable

expectations, or that their demands will increase once you

open the door of a relationship.

Aft er all, what if you start talking to them and they start

wanting better pricing, extended credit, or other special

considerations? Th at might happen with a few individuals,

but for the most part "getting personal" is actually one of the

most eff ective ways to earn your customers’ long-term loyalty.

To a business owner with a small number of customers,

losing just one client has a signifi cant impact.

If you lose a customer due to price or other circumstances

beyond your control, then fi ne. However, losing a customer

because he/she felt unappreciated or underserved is inexcusable;

it indicates serious fl aws in your internal business processes.

Th e easiest way to avoid customer churn is by continuously

reaching out and communicating; in other words, making

customers feel like more than a number.

5. Refusing to hire people who are smarter than you. You might

think: why would I ever hire someone who is smarter than me?

Th e best advice I received when I became the CEO of RME

was to hire people who were better and smarter than I was.

At fi rst I thought it was a condescending suggestion, but the

more I thought about it, the more sense it made. Just like in

sports, your ability to win depends on surrounding yourself

with a solid, capable team who can perform without your

constant oversight.

6. Being cheap about the wrong things. As a small business

owner, of course you’re going to try to cut costs and stretch

the budget wherever possible. And for each dollar you save,

you pat yourself on the back.

If you get too carried away with saving money, you might

end up losing opportunities and customers. To put it another

way: you can’t save your way to greatness.

When you’re mulling over how much money to spend,

think about how your decision might aff ect the customer. For

instance, it’s fi ne to fl y economy and stay in a budget hotel on

a business trip, but don’t take the client you’re meeting out to

a cheap chain restaurant. Likewise, you can furnish your back

offi ce with the bare minimum, but make sure your showroom

is attractive and comfortable.

In particular, don’t be cheap with your people. What I mean

is, be willing to pay for top talent, and don’t skimp on training.

Never forget that your employees—especially those on the

front lines with customers—can make or break your business,

so investing in their development is always the right decision.

7. Treating technology as a magic bullet. In so many ways,

technology has made it easier to connect with customers.

Used wisely, it can draw in potential buyers, cement the

loyalty of existing customers, facilitate referrals, answer ques-

tions, and solve problems. So it’s understandable that many

business owners automatically assume that more technology

is always better. But if you’re not careful, technology can also

be used as a barrier that keeps customers at arm’s length. Or,

on the opposite end of the spectrum, it can allow you to get

too cozy with customers: an inbox or news feed dominated

by unwanted promotions, anyone?

Again, the measuring stick here is simple: If it improves

the customer’s experience, use it. If it doesn’t, save your time

and money.

8. Believing that if nothing is broken, it doesn’t need fi xing.When you’re facing a crisis that could damage or even sink

your business, it’s easier to take risks. Aft er all, if you don’t

act, you’re doomed and there’s probably not much to gain by

holding back.

But what about the times when things are going smoothly?

When nothing is actively going wrong, it’s easy to tell your-

self that things are fi ne, that the future is rosy, and that you

don’t need to put yourself out there to improve. However,

that kind of thinking is a good way to be left behind or to

become irrelevant.

Customers don’t always leave because they had a bad experi-

ence with your company; the reason is oft en that they simply

had a better one with someone else. Remember, risks need to

be taken when business is both good and bad if you want to

stay cutting-edge and competitive.

9. Waiting for "the right time." All over the world, there are

entrepreneurs, and wannabe entrepreneurs, waiting for "the

right time" to make their big move. Th ey are waiting for fund-

ing, free time, better economic conditions, et cetera.

Th ese people believe they’re being smart by waiting for the

stars to perfectly align—but all too oft en, they’re only stagnating.

I’ve seen too many businesses remain less successful than

their owners would like because those very same owners were

hoping that tomorrow's conditions would be just a little bit

better for advancing their goals.

Keep in mind that being a ‘prisoner of hope’ doesn’t just apply

to your company’s growth. Besides forgoing an opportunity

for success by waiting for ideal conditions, many leaders fail

to solve problems or correct mistakes because, in their minds,

the timing wasn’t right. And when you’re bootstrapping a busi-

ness, a mistake can be even more costly than not leveraging

a chance for advancement.

10. Refusing to try again. It’s a fair bet that at some point in

time, you’ve employed a business tactic that just didn’t work.

Maybe you allocated a large part of your budget to producing

a marketing campaign, for instance, but barely noticed any

increase in your business.

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Eff ective cash management is critical to the success of your

small business. Having a healthy cash fl ow in your balance

sheet demonstrates eff ective management and will establish

a better valuation of your business if you were to ever sell.

Here are some key tenants for better cash management:

• Working capital: Oft en cash fl ow management is restricted

to just working capital management. Th is may mean that you’ll

need to tighten customers’ credit lines or cut-off customers

with excessive past due balances. Both of these scenarios, if

not addressed, may lead to delayed payments to your suppliers.

Collection practices like this can disrupt revenue and may

even cause customers to take their business elsewhere. It’s

oft en a fi ne balancing act between the risk of losing sales and

the risk of bad debt.

It's important to analyze each clients’ payment history and

current business before making any decisions. Here are some

things to consider before making a decision to ensure you are

not indiscriminately cutting off your clients' credit:a. Do they have a solid payment history?b. Are there trends where payments slow down then balances are paid in full?c. Have they always been slow to pay?d. Do they make eff orts to contact you to deal with an open balance?e. Are they manageably past due, yet eating up too many internal resources like customer service support?

• Cash fl ow forecasting: If you have not been actively forecast-

ing cash fl ow, you should be! Cash fl ow forecasts should be

performed on a monthly basis in order to identify improve-

ment opportunities.

Accurate cash fl ow forecasting is a powerful tool which can

help you make the right fi nancial decisions and any errors

may result in either additional credit requirements (at high

interest rates for working capital) or a cash squeeze, which

may prevent you from fulfi lling orders.

You should try to create awareness across your entire organ-

ization about the importance of cash fl ow forecasts. Do your

employees understand the concept of cash fl ow? Do they know

what their individual role is in the overall picture of your company?

• Evaluating capital expenditure: It is important to preserve

the cash that your business generates; one way to do this is

by slashing your capital expenditure.

While in the growth phase, slashing capital expenditure

may not be feasible. However, you should perform your due

diligence on expenses and ensure they are backed by a return

on investment (ROI). Consult with your accountant or fi nan-

cial advisor before spending on capital expenditures, like new

equipment or upgrades for current systems.

• Optimize your taxes: Taxes shouldn’t become a major cash out-

fl ow item. If they are, consult with your accountant and evaluate

your business structure, operational processes and accounting

methods to identify ways you can optimize your tax outfl ows.

Entrepreneurs love to "DIY", but self-help accountancy won't

advise you on the best ways to make sure your quarterly or

monthly tax burden is being allocated to minimize your loss.

• Build cash consciousness: Th is is especially important if you

have separate teams handling sales and fi nances. Typically

the sales team would consider cash management to be the

responsibility of the fi nance team and would off er liberal credit

terms for customers in the hope of increasing sales numbers.

To circumvent this, try to incentivize cash conscious

behaviour. Instead of sales incentives based on sales fi gures,

you can off er them based on collections. Th is will ensure that

your sales team focuses on not just achieving the numbers,

but in the quality of sales.

Ultimately, where cash fl ow becomes an issue is when small

business ignore managing it. You can’t arbitrarily spend money

on things that may be working or go months without analyz-

ing your expenditures.

Being your own boss is great, but there is much to learn

from “big business” management of cash fl ow which is sum-

mized in fi ve tips listed above.

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Celebrating 150 Yearsin business across Canada

Or maybe you off ered an online deal to new

customers, only to realize that the discount

you advertised was a little too generous and

wouldn’t allow you to make any profi ts. So now,

if you’re like many business owners, you’ve

vowed never to try again.

Business is far from certain, and sometimes

even the best ideas don’t have the desired results—

but that doesn’t mean they don’t have merit. My point is, don’t let your own stubbornness

place limits on your potential. If you know a

tactic or idea is fundamentally a good one, learn

what you can from your fi rst failure, fi gure out

how to make improvements, and try, try again.

11. Developing the "perfect" plan. Let’s say that

you want to move to the next level, whatever

that happens to be for your business. So you

begin planning for every possible scenario;

you defi ne contingencies with backup plans

full of redundancies. You sometimes wonder

how anyone could fail with a plan that covers

all possibilities and that off ers each a solution.

But here’s what you’re not taking into account:

While your perfect plan might prevent you

from failing, it will also hold you back from

succeeding if it’s never executed.

While planning is a good thing, for many

entrepreneurs, the solution to avoiding the

risk of reality is to keep planning.

Th e truth is, with planning as a comfort

zone, you can easily replace the reality of execu-

tion with theoretical forecasting and ‘what-if ’

modeling. For that reason, many risk-averse

entrepreneurs miss opportunities and fail to

build actual businesses in the act of building

virtual businesses. Don’t make that mistake.

12. Confusing "invention" with "innovation." Many business owners lie awake at night

worrying that their businesses will become

obsolete if they don’t innovate. And so they

drive themselves crazy trying to build a new

mousetrap. What they don’t realize is that all

they need to do is take the existing mousetrap

and make it better.

While invention and innovation may sound

similar, they are two distinct concepts.

Invention involves creating something totally

new from scratch. Meanwhile, innovation takes

preexisting products, processes, services, tech-

nologies, and ideas and makes them better.

Th ink of companies like Netfl ix, which took

our culture’s thoroughly established love of rent-

ing movies and brought the process online, or

Amazon - which ‘techifi ed’ the millennia-old

tradition of reading books with the introduc-

tion of its e-reader.

Th ere’s certainly nothing wrong with inven-

tion, especially if a brilliant, industry-changing

idea hits you out of nowhere, but bear in mind

that innovation oft en takes much less time,

energy, and resources.

13. Requiring hard evidence. Sometimes,

identifying the right decision is clear as day;

other times, the right decision is murkier than

the liquid in a Magic 8 Ball.

How should you proceed?Many entrepreneurs simply avoid making a

decision at all if the information they have isn’t

pointing clearly in one direction.

In my personal opinion, this is a mistake;

you need to keep your business moving for-

ward regardless of whether you have the hard

evidence you may think you need.

Sometimes, you’ll have to bring intuition

into the equation, make a gut call, and then

embrace the risks that come with that move.

If your gut call turns out to be the wrong one,

it doesn’t mean you’re defeated—it’s simply a

part of leadership.

Ultimately, a willingness to seek out oppor-

tunity and accept responsibility for all out-

comes—including mistakes—is the mark of

a true leader.

If you can learn to live with risk and even use

it to your advantage, you’ll be setting yourself

up for entrepreneurial success.

Tom Panaggio is the co-founder of Direct Mail Express and Response Mail Express. He is also the author of The Risk Advantage: Embracing the Entrepreneur's Unexpected Edge.(River Grove Books).

For details, please visit www.TheRiskAdvantage.com

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"We believe the Imprint industry will do well in that time period. The beauty of the last few years is that tightened budgets forced corporate promotional buyers to look for the best value for their money. The good news is that decorated apparel simply has no equivalent in terms of cost efficiency in promoting a brand or a message.We believe the pressures that have prompted consolidation within the industry will continue. There are increasing demands on brands to remain current and relevant with changing demographics and new consumers (millenials) coming into the business. These new customers arrive in the industry with new and challenging ideas of what they want and how they want to buy our products." - Garry Bell, Gildan Activewear

"We believe the next 12 to 24 months will be very challenging for 'traditional' distributors that don’t create value for their clients and employees alike.  Clients are looking for a more complete distributor with multiple service and capability offerings." - Remo Niceforo, Add Impact

"We will continue to see a renewed interest in domestically produced products. Simi-lar to what's happening in the retail landscape, middle market space is shrinking, so businesses will have to focus on either high-end products that are of superior qual-ity, or lower-end goods in order to produce larger quantities at lower price points. I also think we will see more consolidations where businesses band together to create greater value propositions for customers." - Kathy Cheng, Redwood Classics Apparel

"I believe the promotional market will continue to grow in the low single digits. In combination with this, the expectations of key accounts will continue to increase, forcing larger suppliers to develop larger collections and additional services. These additions will include more in-depth compliance and social responsibilities, along with other service extensions. This will increase the service, or capability gap between smaller suppliers and those suppliers that can leverage their size. This will force margin pressure through our entire industry and a likely response will be fur-ther consolidation towards 'Full Service' models." - Will Andrew, Trimark Sportswear

"Over the course of the next year, the GTA market will expand. One of the main reasons is because of the Pan Am Games taking place in Toronto in 2015. The amount of government funding will create growth in the marketplace which will in turn spark growth in our industry."  - Michael Filice, FM Embroidery

"A big challenge is the lack of ability to get well trained em-ployees. Our customers are having a challenging time hiring people at affordable rates to run and manage their business. Companies are competing for labour with high priced indus-tries with high margins, and it's becoming difficult to find and retain those well trained employees. This challenge exists in both in western and eastern Canada" - Kevin Price, RB Digital

"One of the biggest challenges we face this year, versus last, is the decline in the Canadian dollar. We have hedging in place, however our costs have been negatively impacted and the economy is reacting slowly as it shifts to markets that are positively affected by this change. This foreign exchange rate has added further pressure on gross margins across our industry." - Will Andrew, Trimark Sportswear

" The challenge is distributors self-destructive approach. The ability to work with customers in a consultative selling pro-cess seems to be a lost craft.  The deterioration of  margin will have a negative impact on the industry as a whole. Offering a value proposition in delivering the highest level of service is in all distributors' best interest." - Remo Niceforo, Add Impact

"A major challenge is offsetting the race-to-the-bottom prices by adding value and trust with our clients and prospects." - Warren Kindellan, Sudden Impact

"Consumers of apparel will continue to demand more trans-parency from brands to ensure their apparel is made in ethical and safe environments. The Bangladesh tragedies that have affected the apparel industry in the last year have reinforced a movement that was already underway. As a vertically integrated manufacturer, our business model is built on the premise that we own the vast majority of our facilities and we take pride in our employees’ working conditions, health and safety." - Garry Bell, Gildan Activewear

"Inventory management and fulfillment. As attractive as it is to buy high volumes in order to secure the lowest prices, heavy inventory is a risk. As well, pressure to offer the lowest price in the marketplace continues to increase, which creates a business environment where companies risk lowering prices without seeing an increase in sales. Finally, as service and product demands from customers continue to rise, suppliers face a higher costs of goods sold, inventory holding costs and cost to serve." - Kathy Cheng, Redwood Classics Apparel

"While there are concerns about Asian suppliers surfacing, it is my belief that this fear is not yet fully realized. Today our business provides a high level of service for small quantities of decorated apparel and this will be a challenge for an overseas vendor. Having said that, I think the possibility of a new entrant from an adjacent market is a possibility. Today, Amazon does not personalize or customize products, however it is not far fetched. As a result, I believe we need to focus on increasing and leveraging connectivity with our customers with web-enabled applications. As an industry we need to be ready to be very transparent with our information so that we streamline the sales cycle. In doing this we will likely centralize operations and enable accelerated time lines with innovative finished products." - Will Andrew, Trimark Sportswear

"Customers are likely to look for faster delivery, more personalization and will want better quality products while driving us for lower prices. We believe that successful brands will thrive under these pressures by investing in new

technology and innovation and collaborating with their partners to create the most optimal supply chains for the marketplace. We do not think the traditional challenges we have faced will disappear. Volatility in raw materials and inputs (energy, cotton, polyester, transporta-tion) will continue to create challenges. The correlation of economic factors in promotional spending will likely remain in place as well." - Garry Bell, Gildan Activewear

"While we believe current industry challenges will persist in this time frame, a long term obstacle our industry faces is the inability to attract the highest level of talent to an industry that cannot support salary expectations." - Remo Niceforo, Add Impact

"A long term challenges is the shift of decoration from service providers to large manufacturers. In the past, there was always a layer of service provid-ers across Canada that would buy product from manufacturers and provide it to their customers. Today, some of those manufacturers are either decorating the product themselves or having it done offshore. This shift has already started, and the question is over the next five years, will it continue or will it shift back to the service provider?

Some people think this trend will continue, but China continues to change in the types of orders they like to do and we don't think this is a finished story. We think that there will eventually be a shift back to the local service provider." - Kevin Price, RB Digital

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Wholesale sales up second consecutive monthWholesale sales rose 2.2 per cent to $52.6 billion in May, a second consecutive

increase. While higher sales were recorded in four sub-sectors, which together repre-sent 72 per cent of wholesale sales, the motor vehicle and parts subsector accounted for most of the gain. Excluding this subsector, wholesale sales rose 0.7 per cent (see Figure 1).

Th e motor vehicle and parts subsector, which rose 9.8 per cent to $9.3 bil-lion, accounted for most of the gain in wholesale sales in May. Th e machinery, equipment and supplies subsector rose 1.2 per cent to $11.0 billion in May, while sales in the personal and household goods

subsector rose 1.0 per cent to $7.4 billion in May. Th e home entertainment equipment and household appliance industry (+4.7 per cent) led the gain, following two consecutive declines.

Sales increased in six prov-inces in May, which together represented 83 per cent of wholesale sales in Canada, with Ontario accounting for most of the gain (see Figure 2).

Sales in Ontario increased for a second consecutive month, rising 3.2 per cent to $25.6 billion, the highest record-ed level for the province. Quebec had the second largest increase in dollar terms, rising 1.5 per cent to $9.5 billion, the prov-ince’s fourth increase in fi ve months. Higher sales were recorded in most subsectors.

Sales in BC increased for a third consecutive month, rising 1.9 per cent to $5.2 billion on the strength of higher sales in most subsectors.

In Saskatchewan, sales rose 4.3 per cent to $2.1 billion in May, more than off setting April’s decline. Th e machinery, equipment and supplies subsector and the miscellan-eous subsector contributed the most to the increase.Wholesale sales and inventories of Textiles, Clothing & Footwear are up

Wholesale merchants’ sales of textile, clothing and footwear rose 9.0 per cent from the same period last year to just over $963 million, while inventories spiked 16.6 per cent from last year to $2.078 billion (see Figure 3).Retail sales increase for third consecutive month

Retailers reported sales rose 0.7 per cent to $42.0 billion in May. Gains were reported in 7 of 11 sub-sectors, representing 56 per cent of overall total retail trade. Sales at motor vehicle and parts dealers rose 2.5 per cent in May, accounting for the largest gain among all subsectors.

Sales were up in nine provinces in May. Higher sales in Ontario, Quebec and, to a lesser extent, New Brunswick, accounted for most of the increase.

Retail sales at cloth-ing and clothing accessory stores were up 1.5 per cent from the same period last year, despite dipping slightly (-0.3 per cent) from April 2014 (see Figure 4).Sales of Clothing & Accessories at

large retailers edge upwards

In Statistics Canada’s most recent survey of Large Canada Retailers, data reported shows that sales of men’s clothing and accessories totalled $352 million in May 2014, up from $307.1 mil-lion and $334.6 million in April 2014 and May 2013, respectively (see Figure 5).

Sales of women’s clothing and accessories rose in May 2014 to $767.2 million from $659 million in April 2014. Compared to the same period last year, women’s clothing and accessories at large Canadian retailers were down 0.3 per cent.

500

900

1300

1700

2100

2500

$millons

WHOLESALE MERCHANTS’ SALES

Source: Statistics Canada

May 2013 May 2014

WHOLESALE MERCHANTS’ INVENTORY

May 2013 May 2014

Wholesale merchants’ sales & inventory(Textile Clothing & Footwear)

+16.6%

+9.0%

$2,078million

$1,782million

$884million

$963million

Figure 3

54Billions ($)

Canadian Wholesale Sales Increase

Figure1

52

50

48

46

44

42

40

38M J

20102009 2011 2012 2013 2014J J J J M

Source: Statistics Canada

-2 0 2 4 6 8 10 12

Provincial Wholesale Sales (% change)

CANADA

NL

PEI

NS

NB

QC

ON

MB

AB

SK

BC

Figure 2

Source: Statistics Canada

0

1

2

3

4

$billons

RETAIL CLOTHING &

CLOTHING ACCESSORY STORES

Source: Statistics Canada

May 2013 May2014

RETAIL CLOTHING STORES

May 2013 May 2014

Retail sales(Clothing & Clothing Accessory stores)

+0.8%+1.5% $2,047

$2.26billion

$2.30billion

$1.78billion

$1.79billion

Figure 4

100

200

300

400

500

600

700

800

Monthly Sales of Clothing & Accessories

(survey of large Canadian retailers )

($) millions

$767.2

million

$659.0

million

$769.6

million

$334.6

million $307.1

million

$352.0

million

Source: Stats Canada

May 2013 April 2014

Women’s Clothing and AccessoriesMen’s Clothing and Accessories

May 2014

Figure 5

WHOLESALE & RETAIL SALES; SURVEY OF LARGE CANADIAN RETAILERS

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