SMART | work


Where do biofuels go from here?


How to create a value proposition that stands out from the crowd


Here's a breakdown: • It explains how your product or service


O


First generation biofuels sources were problematic, but the next generation are showing promise.


F


irst generation Biofuels may have been considered the darling of cleantech of one point, as clear pathway for fossil fuel based cars and heating fuel. However, a combinat ion of


criticism from environmental- ists on corn ethanol, and other forms of biodiesel which use sub- stantial amounts of energy, and land, which don’t reduce carbon emissions, plus declining battery costs for lithium ion batteries for electric vehicles, have dampened enthusiasm for first generation biofuels. However, there is a new genera-


Clean Tech Adam Johnston


tion biofuels which may help pave the way for new excitement. Second generat ion biofuels


have lots of potential in cutting carbon emissions, use less land, and offer opportunities for tradi- tional oil and gas companies to


diversify their portfolio. Investopedia had defined biofuels as “a type of energy


derived from renewable plant and animal materials.” First generation biofuels are made mostly from food-


based crops. Some examples of well-known first generation biofuels include soy diesel, corn, and sugar cane ethanol. Te United States and Brazil are the top two biofuel pro-


ducing nations , with the US specializing with corn ethanol, and Brazil with sugar cane. However, as mentioned earlier, first generation biofuels


often are land and energy intensive while not producing the carbon emission reduction results wanted. According to GreenTech Media, creating corn-based ethanol can be energy intensive due to the transportation of feedstock, use of fertilizer, then transportation of the biofuel to a refin- ery. Te article suggests any real carbon emission savings would have to factor in all the inputs about the upfront and production costs. Add to the food vs. fuel debate, where either land is favored


to grow biofuels over food, and you have a big problem, whether it's developing corn, or sugar cane based ethanol. United Nations expert Jean Ziegler in 2007 declared develop- ing food-based biofuels a "crime against humanity," while Forbes columnist Morteza Soleymannezhad gave a similar damnation , suggesting “Taking sugar, and converting it to fuel is not any different than taking food from someone’s mouth and using it as gas.” If ethanol-based biofuels from corn and sugarcane were


becoming unpopular as a clean alternative to vehicle fuels, then the rise of electric vehicles recent years. Declining lithium ion battery prices , which have helped make electric vehicles more affordable for the average consumer, plus favorable policies towards electrifying transportation , also have given a punch to the eye for first-gen biofuels. However, all is not lost for biofuels, as its second genera-


tion cousins offer promise. Advanced biofuels, unlike their first-generation counterparts, mostly do not come from food stocks. Re-used vegetable oils, municipal & green waste, cellulosic, and algae are some more well-known examples . Studies have pointed second generation biofuels are less


energy intensive. Research from the University of Illinois suggests by using cellulosic biofuels would cut carbon emis- sions further than its first-generation biofuel counterparts, with dramatically less land use. Te biggest challenge second-gen biofuels face they need


more commercial development to gain further market trac- tion. It still has not stopped some oil and gas companies in getting into the next-gen biofuel game. Shell recently signed an agreement with Edmonton-based


SGI Energy which will allow the energy giant to gain exclu- sive licensing and creative rights for its biofuel technology. SGI Energy specializes in sustainable vegetable oils which can be used for jet fuel and diesel. Shell already is working on next-gen biofuels based on crop waste and non-food based crops. Oil companies are starting to look at investments in next-gen biofuels to hedge bets against the potential collapse of the fossil fuel industry while diversifying their portfolios. While first-gen biofuels may eventually be on their way


out, new opportunities for advanced biofuels will ensure this industry remains an important piece of the clean energy pie. Adam Johnston is a freelance writer and owns a part time


social media and clean tech writing business. You can go to his website at www.salayconsulting.com or email him at salayconsulting@gmail.com.


6 Smart Biz


solves your clients’ problems. • It highlights specific benefits of working


with you. • Explains why working with you is a better


option than working with your competitors. Understanding these three key things can


go a long way towards building your business, helping you find and retain the kinds of clients and customers you want, and goes a long way towards quoting accurately and not selling yourself short (which many people I meet tend to do, it seems). Despite its importance, many of the people


I've met either don't know how to create one, or don't understand the steps to creating an effective one which helps their business forward. Today, we're going to fix that: Understanding Your Value


ne of the cornerstones to running a successful busi- ness is having a strong value proposition. Not sure what the heck a "value proposition" is?


of ways: looking at buyer or customer data, conducting a Twitter poll, asking friends and colleagues, talking to your mentor - the sky's the limit! Creating an Eye-Catching Value Proposition Business is about being different. Te more


you can stand out from your competitors, the stronger your value proposition will be. Here's what my value proposition looks like: Starling Social is a content marketing agency


specializing in copywriting and social media management services. We help businesses share their brand values and connect with their ideal customers online. Let's break this down: • I've identified the kinds of clients we work


Social Media Alyson Shane


with. • I've stated the kind of work we do (content


marketing, copywriting and social media management) • I've described the kinds of working rela- tionships I want (long-term ones)


• I tell prospective clients how we help them (increasing


brand awareness and community growth) Creating a value proposition which states what you do,


Tis is tougher than it sounds. For many of us (myself


included) our businesses happen as the result of a series of opportunities which may leave us feeling unprepared and confused. Tis is normal. When I first started out I knew a few things: I knew what


I loved to do (writing, content marketing, and community management) and I knew why my clients wanted to work with me (strong writing skills, good attitude, deep knowl- edge of my industry), but I struggled to clarify what the value of what those things actually meant to my clients. This takes some serious thought and reflection, and it's okay if you don't know right away. Some things to ask yourself are: • What am I exceptionally good at? • What makes me and my business unique? • What does a one-sentence summary of how I help my


clients/customers look like? Get to Know Your Ideal Client or Customer Take a step back from your own train of thought for a


second and think like your ideal client or customer, then ask yourself the following questions: • What do they do? • What kinds of problems do they have that I can help


solve? • How can my services or product help make their lives


easier? • What do they value? Not sure how to answer these questions? Ask and do some market research! You can accomplish this in a variety


what makes you different, and the kinds of clients and working relationships you want to have doesn't just tell your clients about what you do, but it also helps you determine if a potential client or customer is the right fit for you, saving you time in the long run. Adding Social Proof


Do you have any accomplishments that you're proud of? Maybe you were published in your local paper, received


an award for excellence in your field, or spoke at a confer- ence - whatever it is, feel free to weave these into your value proposition when you can. Tis is called "social proof" and is designed to add to


your value proposition in terms of concrete examples of how awesome you and your business are. You can add things like "voted #1 in my field" or "nomi-


nated as 2015 Canadian copywriter of the year" - whatever it is (as long as it's true!) can go a long way to adding weight to your value proposition. Now it's your turn!


Ask yourself what you want to do, how you'll do it, and


how your approach makes you different than other people and businesses in your industry. Alyson Shane runs Starling Social, a Winnipeg-based


digital marketing agency which specializes in copywrit- ing and social media management services. You can learn more about her business by visiting https://www.starling. social, and you can talk to her about social media, content marketing, cat memes and gardening by finding her at @ alysonshane on Twitter.


How much will you need? T


he first investment fundamental is to choose your asset allocation between fixed income assets, lend- ing your money for a contracted rate of interest, and equities, buying a piece of the business where returns are not guaranteed by a contract but we expect to do better over the long term, even if there are more ups and downs along the way. Forget financial advisor blar-


Financial


Literacy Fred Petrie


ney that you can get aggres- sive returns with conservative investments – there is no free lunch. So we are faced with choosing a trade-off between the long term rate of return expected and volatility year to year. Te most conservative asset allocation is 100% fixed income assets like bonds and GICs. Bank GICs and govern-


ment bonds may produce 1 to 2% annually, which can still be a net loss after inflation and taxes. You can add some “high yield” corporate and foreign bonds and maybe get 3 to 4%. Buying gold or cash under the mattress can be similar investment choices. A “Conservative” investor may include 25% blue chip


dividend paying equities in her portfolio and anticipate an average 6% return, at the risk of modest volatility where returns in any one year may be 3% to 9%, but you are un- likely to lose capital even on paper. A “Balanced” investor may go 50:50 on fixed income and


equity asset allocations expecting 4% on the fixed income and looking for 12% on the equities to average 8% annually, but with greater volatility. If government lowers interest rates, reducing the paper value of your bonds to say 2%, at the same time as there is a market “correction” dropping the market value of your equities by 10%, you could have an annual return that year of 2%. Of course the opposite pattern could see your annual return at 14%. Now an “Aggressive” investor could reduce their fixed


income “cushion” to 25% and expand their equities, per- haps including some foreign and emerging markets, to tar- get an average 10% return, at the risk of a year of negative


www.smartbizwpg.com


% Equities 0%


25% 50% 75%


100%


Average return expectations at different as- set allocation of equities Target Returns


4% 6% 8%


10% 12%


Volatility 2 to 6% 3 to 9% 2 to 14%


-10% to 20% -20 to 40%


circumstances causing a loss of 10% one year with a 30% return the next. Very aggressive investor might have 100% of their portfolio invested in equities expecting to average 12%, knowing one year can be a 20% loss while another may be a 40% gain. Let’s sum that up with a little table: Tere are no guarantees in investments; even a fixed


income contract can have risk (remember General Motors defaulting on its bonds?). And these numbers are only order-of-magnitude “ball park” guesses to illustrate the point, likely good for two standard deviations of prob- ability or two thirds of the time. Many equity portfolios lost 50% or more of their value in the 2008 crash. Poorly advised investors sold off what they had left and stuck it into “safe” bonds. People who understood how the markets work rode it out and had recovered the paper loss within a year or two. Astute investors saw it as a buying opportunity and increased their equity positions. Of course, that is why you are reading this column, to learn how things work so you can make your own choices. In order to choose the right asset allocation, you need to


know how much are you going to need for your definition of financial independence? I googled financial calculators and the first one up was https://financial-calculators.ca/. Based on current family income and your plans for THE END OF WORK, you budget a need for after tax income of $80,000 or $6000 a month and $8000 travel fund. You need to provide for Revenue Canada even in retirement so that will need $10,000 a month or $120,000 year gross before taxes. Te high side of government pensions (CPP and OAS)


might give you $20,000 each, and your spouse’s defined benefit pension plan after 20 years of government service Financial Literacy page 15


August 2017


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