The Learning Institute for Small and Medium Enterprises, a not-for-profit, was converted to Vubiz Ltd, a for-profit for a simple reason. We needed to raise $2 million in equity to build a viable enterprise. And our new name, Vubiz, stood for Virtual University for Business. We had already figured it out. Focusing on the small business market alone would not create a viable company. We needed a wide range of business clients in Canada and the US.
We used CFIB victories that were designed to help new ventures seek capital from the non-institutional equity market, essentially family and friends. So when I approached prospects, I first told them that I was investing $200K of my own money and if they would invest from $25K to $100K, they would enjoy a tax-free capital gains at some point, and if at worst we went "belly-up", they would only suffer a loss of half of their investment. These provisions were related to the tax-free capital gains provision in the Income Tax Act and the Allowable Business Investment Loss Provision. We also raised $75K from three individuals investing from their self-administered RRSPs. Another CFIB victory.
We raised $1M in 1971 and $1M in 1975. And we used this capital to finance assets, not operating losses. And with proper equity funding, we were not reliant on loans from the banks. Trying to get bank financing for digital assets was a bit like having root canal surgery.
Jim left Confederation College and became President and CEO of Vubiz Ltd and proceeded to focus on building quality content in partnership with strategic clients. The major focus became compliance content like Health and Safety and Discrimination which all large firms in Canada and the US are required to purchase. Jim and his team became multiple award winners over the years. And Jim opened a Vubiz Inc. subsidiary in Southern California.
We maintained our leadership in small business training and created a coalition of business and associations that provided the content required to build a suite of small business certificate courses.
Brother Peter built an e-commerce system so that the public and employees could acquire content online.
Vubiz has grown to a $4M business and employs 23 people. It is a story of good people making good decisions. It is also a story of people providing fabulous value to clients and outstanding service. And finally it is a story of people passionate about what they do. It is a small business story.
Although I started the company, its success is linked to Jim’s marketing expertise and leadership. Like so many successful small firms, the original planning was a minor factor in its success. Success instead was about perseverance and continuous innovation. The other key lesson was that CFIB victories are about helping entrepreneurs build successful companies. Too often we are diverted from the politics of great CFIB fights and victories. But the ultimate goal of it all is to help build companies and create opportunities for Canadians.