The Business Leadership Podcast

Don: [00:00:00] Canadians still are enjoying getting back to the in-person experience. The majority of Canadians still do see growth in digital engagement and are looking for new ways to engage with businesses in a, in a digital way. And in fact, only less than the half of Canadians think that, that that digital growth has has stopped.

​Edwin: It's called the Growth Unlocked Podcast. Today I sit down with Don Ludlow. He's the Vice President of Small Business [00:01:00] Strategy and Partnerships at rbc, where he provides strategic oversight and leads a team that is responsible for delivering market leading solutions, partnerships, and client experiences that go beyond traditional banking to help Canadian entrepreneurs.

Successfully start, manage, and grow their business. So in this episode, you'll gain valuable insights into the evolving digital landscape, including the adoption of digital technologies, consumer preferences, and the balance between digital and human experiences. Basically getting a deeper understanding on how to navigate the digital realm and leverage it to grow your business.

You will also discover practical strategies, tools, and resources that can help you successfully adopt digital technologies and optimize your business operations. Whether you're starting or already on your entrepreneurial journey, you'll hear practical advice, innovative [00:02:00] ideas, and a fresh perspective that can help you take your small business to new heights.

The Growth Unlock podcast is brought to you by RBC. Now, with that, here we go.

Welcome to the Growth Unlocked Podcast, Don.

Don: Great to be here.

Don, in recent years, the pandemic has significantly accelerated the adoption of digital technologies in the way we interact with business. Do you, do you still think that Canadians have strong interest in digital experiences, or do you believe that this trend has, has peaked?

Yeah, for sure. We did see that an acceleration of digital. Capabilities and digital, digital engagement during the pandemic for for obvious reasons. And, and this is slowed, but but, but not stalled, I would say. And perhaps it's returned to, its you know, it was pre pandemic trend line and I think, you know, Canadians believe that as well.

While Canadians still you know are enjoying getting back [00:03:00] to the in-person experience. The majority of Canadians still do see growth in digital engagement and are looking for new ways to engage with businesses in a, in a digital way. And in fact, only less than the half of Canadians think that, that that digital growth has has stopped.

Which is interesting because a majority of business owners, I think 57% think that it has stopped. So there's a bit of a gap there or disconnect between reading what consumers are thinking. and what businesses owner, business owners are thinking. And so, you know, I think, you know, it's really important for business owners to keep investing in digital even as we are enjoying getting back to that human component of doing business.

Edwin: Yeah, it's, it's interesting and we'll definitely get back to, to that gap as well. But I guess from the point of view you know, there's companies such as Meta and Amazon have stated they, they may have overestimated the staying power of the pandemic's e-commerce boom. You know, they were citing this as factors in their current economic woes. So do you, you know, [00:04:00] do your findings run contrary to these sentiments?

Don: I think it's a, it's an interesting dynamic that's created here. So, you know, yes, that digital has slowed, but what the digital really did was it created all kinds of new tools and capabilities and opportunities for small businesses to become more competitive. And so think of a small retailer who, you know, pre pandemic, perhaps they weren't online, they really just sold locally, and the pandemic.

Gave them an opportunity to, you know, get online and, and sell what they were doing, their products and services anywhere. And so you know, these digital capabilities have really helped small businesses become more competitive. But of course, that's increased competition. And so, you know, is for sure perhaps that digitization is slowing.

But I think the undercurrent we're seeing is really increased competitiveness because it's really helped unlock All kinds of potential for small businesses that can now access these digital capabilities and e-commerce capabilities so easily.

Edwin: And what's [00:05:00] what's interesting and what you've mentioned like through, you know, the Canadians, they've indicated that, you know, their continued appetite for e-commerce and, and the digital experiences and the findings. they're showing that human experience. Are also important for the future of small business.

So why, why is it important for small business to find the right balance between this e-commerce, this digital world and, and human experience?

Don: Yeah, it's all about balance and I, I think it's a tricky balance to get. But for sure our research definitely shows that while consumers as I said, have an appetite to continue to engage with and interact with businesses. Digitally or virtually in different ways that human component is still critical.

And so, small business owners and business owners need to find the right balance. And that's particularly true as we engage and interact with the younger generations. Well, you might say millennials and, and Generation [00:06:00] Z, where, you know, a majority of them are looking for that human touch in certain things.

And so, How do you find the right balance? I think it's understanding either through research or trial and error, how people how your consumers and your customers want to interact with you digitally and where that, that human component is really important. So, for example, our research shows that for our younger generations millennials and generation Z, they're quite happy to shop and consume a lot of products and services online.

However, if something goes wrong or they're looking for after sales support, they really want to talk with someone and they want to interact with someone to get at addressing the issue right away. And so it's, it's a matter of honing that approach and figuring the right balance to do different parts of your business.

Edwin: And I think that's where a lot of the challenges, right, Don is pre pandemic, that human experience that's sort of built in for a lot of the small business. They understand it in real life, but then they got shifted into this. [00:07:00] Digital landscape, this e-commerce landscape, and it's sort of like a, a big mind block in terms of how do you deliver that that human touch, right?

Because it's, it's a lot of learning, right? But there's an opportunity and with the research, it's really showing probably, and then you just mentioned it, there's a lot of experimentation to understand how to provide that and maybe not go overboard on it. Right.

Don: Yeah. And in, in fact, I think small business owners in in particular have a great opportunity here because I, in many ways, their strength was always perhaps a very local. You know, customized human experience. And, you know, now they've embraced digital, which is awesome, but they, they, you know, need to make sure they don't let go of their strength which is the real, the real character and and local aspect and, and a human component of their business, which consumers love.

And Canadians still have, you know, a significant thirst for.

Edwin: Yeah. So I guess thinking about the adoption, how [00:08:00] do you see small businesses, you know, adopt to the rapidly evolving? Digital world, this e-commerce landscape in, in order to capitalize on the opportunity, you know, sustain the growth in the digital economy and stay competitive, in the growing market.

Don: I think it's a matter of picking the areas where you might continue to. Make investments in, in digitization and and technology and, and, and a couple of areas, you know, stand out as as opportunities, if not even low hanging fruit. You know, the first is you know, streamlining your finances and and accounting and payments.

So, you know, there's all kinds of great tools and capabilities to do that, whether that's basic online, you know, interact e-transfer payments you know, remote check depositing with your phone. Paying vendors online with a credit card accepting payments online. There's all kinds of great tools and capabilities to do that and, and that simplifies things and actually makes them more efficient and secure and, and often delivers [00:09:00] a great customer experience as well.

So, you know, that that's, that's the first one I would say. The second is, you know, maybe looking at digitizing your supply chain. You know, again there's all kinds of great tools and capabilities targeted at small businesses to help them with things like . Inventory management and, and reconciliation of of you know, their, their middle and back office functions.

So, you know, there's great opportunities there. And, you know, I think the last one would probably be, you know, using the power of data to to better understand their business and And find new opportunities. At rbc we, we have an incredible tool called insights Edge, which helps you know, retailers and merchants better understand their customers, their buying patterns, demographics, you know, to help them find new customers like that and grow their sales with them.

Edwin: when it comes to, I guess, setting up, the banking, your supply chain and getting, getting into the data, what do you see, and through your tools and services and offerings when it comes to supporting a lot of the small businesses, do you [00:10:00] see that integrated as well when it comes to delivering that human touch, that customer experience as well?

Don: I think there's opportunities to, to digitize all that and all those capabilities and still you know, keep that human interface and that hub connection. And, and a great example is as you just mentioned with banking and finance. For sure there's all kinds of great ways to do a lot of that online and digitize that.

And yet you also, there's times where you want to go and speak with with your banker and and seek out their advice and gain their insights on what they're seeing about your business. So, you know, it, it should never be viewed as either or I think it's, it's just how do you make the two work together well and as seamlessly as possible to meet your business goals.

Edwin: and it's back to what you said at the beginning, it's like literally that balancing act of, staying with your expertise, but also thinking about. The future and sustaining growth and maybe not, I guess, overwhelming yourself because this is a lot of new things for small business owners who are, who literally just wanna stay [00:11:00] with their expertise as well.

Right. So, so it's amazing and, and it brings me to the next question Don, is, you know, let's say the small business has got these building blocks set up. You know, they got it started, they're past day one, they're feeling good about self So how, how can the entrepreneurs assess whether their business is on the right track? Now, you know, to survive and ultimately thrive in the long term.

Don: Yeah, I think it, I think it really comes down to, to setting some you know, achievable and measurable goals that, that keep you on track and then can also help you. build the confidence and maybe reality checks that you are on track and that you're succeeding. And so, you know, what can that look like?

We asked a bunch of small business owners, Hey, what are the things that they use to measure success or set as goals? Almost two-thirds of them said establishing a loyal and repeat customer base. So a core group of customers that keep coming back that you know really well, and that you know you love them and they love you.

You [00:12:00] know, so that's, that's number one cuz that's that's, you know, provides a degree of sustainability to your business. The second is innovating and creating new products and services focused at your core customers. So, staying close to them and finding new ways to delight them or solve their problems.

Over half a small business owners set a goal like that. Another would be having funds to invest and grow and develop either your capabilities or your team. . So always investing a bit and keeping that steady so that the, you know, there's sustainable investments in your business achieving certain sales goals and business goals, of course, really, really fundamental.

And then you know, maybe setting overall profitability goals you know, achieving positive cash flows or profitability in successive quarters or having a budget and achieving that by the end of the year. These are all, you know, the kinds of concrete goals that you can set up once you get going that start to say, Hey, I'm on track and I know the levers that I need to pull to to accomplish success.

Edwin: Yeah, I really [00:13:00] love the feedback that you and the team are receiving from. The small business customers when it comes to building those core clients, those super fans, right, those repeat businesses. And what I was thinking, what came to mind, Don, and I'd love to get your thoughts, is, is it's really focusing back to that human experience, that element, that communication.

Because in order to innovate and provide new things for customers, it's, it's really. Keeping that communication alive and, and I guess backing it into the data and into things you could really make, I mean, this stuff excites me because it's like, oh look, I, I have this conversation going and I'm seeing like even from your report, X amount of people of my customers kind of want this. And you kind of know where to go as well.

Don: I think that's why it, it's so important to just stay, stay focused on your core and, and what are you really great at, and like, what are you passionate about and, and what resonates with with your customers. [00:14:00] And to me, that's actually the agility advantage that a lot of small businesses have.

You know, they get an almost immediate feedback loop to how they're doing that perhaps larger companies and enterprises sometimes struggle with understanding, you know, how it's landing out in the in the market and everything. So yes, absolutely.

Edwin: And that's where the you know, and this is even myself, I, I look to support a lot of the small business owners here in downtown Toronto, right Where I live. I like to support us lot and, and you just feel good as a, as a customer. I mean, me speaking for myself is like, I could. Directly talk to the owner and tell 'em what I really love about their product and, and maybe give them insight.

And when, you know, when you have that open dialogue with people, with business owners, me as a customer feels, I feel like I own part of that relationship too. Right? So I think, I think it's really important to, to have those dialogues and, and

like

Don: hundred percent.

Edwin: bring it back to the, the data and understand that that's great.

Don: And we, and we know by the way, Edwin, that you know, from [00:15:00] previous surveys that, you know, Canadians coming through the pandemic really grew an appreciation of the importance of small businesses and local businesses. And I think it's almost two-thirds of Canadians still planning on shopping and supporting local businesses.

Because it's a great experience and because it's, there's such an important fabric of the community, so there's a great opportunity there for small businesses to to you know, untap or tap rather

take advantage of.

Edwin: Yeah. One of the reports and tools, I know you mentioned it at the top and I I got familiar with it in the past, was that it's the insights edge, and I think some of the data there is telling, you know, the, the customers that, Hey, look, people really wanna shop close to home. It's as easy as it is to shop online

People really are feeling connecting and that, and that, that came about spec specifically through, through the pandemic,

Don: That's correct. Yeah. And, and so that's a great example of the right balance because you, you get an immediate human interaction [00:16:00] and response to your customers, and you can use a digital tool like Insights Edge to get the hard data that can reinforce that and, and help you better understand it and the nuances of it and everything.

So, Yeah, it really just speaks to the importance of both.

Edwin: Thinking about that, Don, you know, with the increasing importance and how you and I are talking about technology and driving the success of small business, like how should these owners invest in continued digital transformation or adoption and which essential technology, you know, technological investments or resources should they consider now?

Don: . Yeah. Well I think when it, when it comes to the ar areas to focus on perhaps you know, digitization of payments stands out and you know, if you go to companies like mines they can help you, you know kind of integrate your payments with your e-commerce functions. You know I think you should probably look at you know cash flow planning.

and and, and figuring out just what the, you know, [00:17:00] economics are of your business. There's all kinds of tools and capabilities you can use to to get at that. We have on our website if if anyone's interested, something called the RVC Cashflow Planning Tool. It, it's a basic tool that just helps you figure out you know, the, the p and l of your business and making sure that that you're on track.

So, you know, basic investments like that I think help keep you keep you on track. And then, you know, as you get you know, more and more, sophisticated in your use of technology and the integration of it then? I think, yeah. Opportunities to you know, digitize and automate your middle and back office are are additional areas to explore, I suppose, as well as just your you know, HR activities, your recruiting your your payroll.

You can go to companies like ADP who can help you, you know, automate your payroll functions and make that really seamless and secure. So all, you know, all kinds of areas for a small business owner to, to really take advantage of technologies that used to be only accessible to very large companies.

And and yet now you can get a lot of those capabilities [00:18:00] when you're very small, which is awesome.

Edwin: Yeah. That's great. And, and I know, I know we're mentioning Don a lot of resources and, and for those who are listening and interested, we'll just drop into the show notes. We'll have all the links there, all, all the summaries as well. I know, I know we've been talking a lot about banking, so are there other services RBC offers, to Canadian entrepreneurs to make owning and running a business easier?

Don: Yeah, I, I think all kinds, so we, you know, we all obviously aim to. , you know, help our clients with, with delivering best in class banking and financial, you know, insights, tools, and device. But there's so much more we can do. In fact you know, we have a whole suite of what we would call beyond banking solutions that really try to help business owners with the other parts of their business, the other things they're trying to do.

So, you know, if you're thinking of of starting your business and, and registering it or incorporating it, we have a, a great little tool called Owner that that really helps you register and incorporate. And set up the basics of your business quickly, simply and affordably[00:19:00] online. So so that's a great tool.

Once you get up and going, as I said Manis online is is a great place to go to get your e-commerce and payments set up. Of course we've mentioned already Insights Edge, which helps you know, deliver all kinds of insights. And then, you know, in keeping with that digitization, and manage of all that, and management of all that.

We have a great partner we work with called Sure Web, who helps people set up cloud-based solutions and and they can help you you know, identify opportunities and then get set up that way. And we have another partner because commerce is increasingly getting digital, which is great.

However, also there's some risks associated with that. Sometimes we have a, a partner called Cobalt io. that helps you deal with any cybersecurity risks and they help you identify what those could be, set yourself up for success and then are there to help you out if something something goes bump in the night.

Track 1: So lots of lots of ways that we can help clients obviously with with their banking [00:20:00] and financial advice, but also you know so much more beyond that in helping them with broader business needs.

Edwin: Don, where could we find, you know, these informations of these links? Is there a one website link that we could go to that will help us direct, you know, those interested who are listening today?

Don: Yeah, of course. Well, I, I always just head to rbc.com and and we have a site, the RBC Small Business Navigator, which can get you access to those initial tools and capabilities. And there's also information there with our whole suite of beyond banking capabilities. So, of course, that's online.

We, we love talking to people too. . And so while we we certainly try to provide you know, seamless and user friendly digital experiences for those seeking it we also love talking to business owners and entrepreneurs, and so give us a call or a drop by branch, set up an appointment, and we love to sit down and understand your goals and dreams and see how we can help out.

Edwin: Don, it's it's been a pleasure. Thank you for joining [00:21:00] us on the Growth Unlocked podcast.

Don: Thanks so much, Edwin.