Taunya Woods Richardson
Taunya Woods Richardson, President and Chief Executive Officer
Company: Powerhouse Inc., Calgary, Alberta
Contact Info: Tel: 1 (866) 839-2333; e-mail: taunya@powerhouseinc.ca
Description: Powerhouse Inc is Canada's only member-owned organization to build advisory boards for small business owners. Founded on the principles of social entrepreneurship, Powerhouse is committed to strengthening economies and communities by empowering the independent business owner. In addition to owning shares in Powerhouse, members - who are primarily in the start-up to $2 million revenue range - are provided with their own year-long advisory board, the driving force behind their growth, sustainability and profitability. They also have access to mentorship programs and resources. Powerhouse advisory boards currently serve small business owners in the west. With offices in Calgary and Vancouver, Powerhouse is poised to expand to Ontario this year.
Background: Taunya Woods Richardson enjoyed a 10-year business development career in the telecom industry followed by a decade of entrepreneurial experience running two consulting practices and a catering business that provided the inspiration for Powerhouse Inc. "There were significant challenges in running those businesses," she recalls. "When I began to connect with other small business owners, I realized there was a reality to entrepreneurship that wasn't being addressed. Everyone is going through similar challenges yet not talking about them. Small business owners are often reluctant to discuss their money issues because they're afraid or embarrassed that they're just not making enough or even any." That's when Taunya decided to create an outlet for business owners to share experiences and learn from one another in a way that would empower them to grow successfully. She started Powerhouse Inc. in 2003.
Unique Aspect: Powerhouse provides the small business owner with cost-effective access to a peer advisory board, composed of a professional facilitator and six like-minded entrepreneurs who are at similar stages of business and have expertise in such varied areas as finance, HR, sales and marketing. "You end up with a unique dynamic - a group of people who are not only experiencing the entrepreneurial journey but also have subject matter expertise. The result is very powerful. Everyone works together to ensure the success of each member on the board. "
Growth Plans: Convinced of the uniqueness of her business model, Taunya feels that the sky is the limit in terms of growth potential. "In Canada, there are 2.5 million small business owners, 87% of whom will not succeed without the right support." She also hopes to expand internationally in five years, targeting Australia, the U.K. and the U.S., and plans to build her own advisory committee to provide guidance in this. "As a small business ourselves, we want to make sure that we've protected and solidified our model before we enter a new market." Taunya believes her business model is scaleable and can work in foreign markets. "Regardless of age, gender or geography, entrepreneurs around the world grapple with the same issues - cash flow, how do you distribute, how do you sell, how do you keep growing - just on a different level."
Growth Strategies: Taunya has partnered with a national organization of trained professional facilitators to give Powerhouse access to facilitators in any Canadian market in which it expands. "We need them on the ground to facilitate advisory boards, the core of our business. Everything else can work online." She is also assessing the use of web conferencing to build boards. "This would enable any small business in any market to access the power of a board. Every two weeks, an entrepreneur in rural Manitoba could then join five other business owners from across the country to discuss current challenges and have a professional facilitator pinpoint vulnerabilities in the business."
Raising Capital: "Raising capital was my biggest challenge when I first started Powerhouse. It's next to impossible to raise amounts under $1million, especially for a support organization in an oil and gas town like Calgary. Our seed money was raised primarily though existing members who wanted to become long-term investors in a business model they knew worked."
Greatest Rewards of Growth: "Profitability is important in any business. However, I believe long-term profitability and shareholder value are directly linked to doing the right thing: giving back to those who are responsible for your growth, Many questioned why we did not structure ourselves as a non-profit when we first started since our goal is to give back and make a difference. As an organization that's showing small business owners how to become profitable, we have to walk the talk. On a larger scale, we're really looking to build a global entrepreneurial community that has a strong, unified voice, putting more resources in place that address the real needs of today's entrepreneur. In terms of measurement, at the end of the day, it's about seeing more business owners succeed. The fact that we had any small part in their success is a huge reward."
Biggest Growth Challenge: "Like any business, big or small, growth and evolution require an influx of resources, specifically people. In my case, I'm looking to find people who meet a unique set of criteria - those who have lived the entrepreneurial challenge and believe in our value structure of altruism, reciprocity and social entrepreneurship. We're looking for employees who see the bigger picture and believe in the whole world of entrepreneurship."
Biggest Growth Risk: "Part of our expansion strategy is to enter and secure major markets, followed by secondary markets, in order to establish our brand and market share. Because we are a small company to start, we don't have tremendous cash reserves on hand, so there is always the risk of competition duplicating our model in markets before we get there. One of the things we've done to counteract that potential is to introduce an affiliate program for organizations like chambers of commerce, boards of trade and retail associations to use our model for their members. This is structured as a joint venture where we get a percentage of the fee."
How RBC Royal Bank Has Helped: "Since opening my very first savings accounts, RBC has been the only bank I've dealt with. They've provided me unwavering support through my evolution of careers and businesses. Even through the tough times, the bank has always been understanding and supportive."
To Grow or Not to Grow: Advice
- "Get outside of the business - what impact are you looking to make on the world? What legacy do you want to leave? Once you define your vision, it's easier to know how to move forward."
- "Women will often get stalled because of fear of failure and/or rejection and the need to do it all. Men tend to view their businesses differently - less of an extension of themselves - and they'll do whatever they need to get to the next level. It can be helpful for women to have men as mentors and advisors as well and benefit from a different perspective on growth."
Biggest Growth Lesson: "You need to love the process. The entrepreneurial journey is about consistently seeing the bigger picture, continuously innovating and subjecting yourself to risk, and of course you can never give up! If you view your mistakes as opportunities, you can experience tremendous growth and evolution. Mistakes are simply signs to show you things could be different. Now that I'm learning all of this, I'm not quite so hard on myself when things don't go as I had planned. With that comes a sense of peace rather than anxiety and stress."
On Work-Life Balance: Taunya feels she is fortunate to be building the business at a time when she can devote 100% of her energy to it. Although that leaves little time for personal pursuits, it is worth it to her. "When business owners find what they know they were meant to do, they will do everything to see it succeed. Powerhouse is so much more than just a business. This is really what I was meant to do, so I have put everything into it. Initially, I sold the house and the car to keep the business afloat. There were times when I had no money. The fact that I got through it and that we're now profitable demonstrates to others that they can do it, too, if they persevere and learn from their mistakes. This business allows me the opportunity to connect with entrepreneurs and let them know they're not alone!"
Personal Interests: In addition to reading, travelling and cooking, Taunya loves hiking with her dog, Maxwell. "Maxwell is my de-stressor." She has a love of culture and the arts. "I draw many parallels between artists and the entrepreneurial process. When you think about it, artists are simply trying to make a decent living doing what they're passionate about and following their dream. I think we need to broaden our definition of entrepreneurship."
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