Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 21, 1987, Winnipeg, Manitoba Business Winnipeg free press june Page 20 Winnipeg Painter brushes up on half a continent Glenn free press by Stephen Ostick Bob Suderman decided Early in life be didst want to work for somebody at just 24 years of he no longer has to worry about a Boss peering Over his any headaches Suderman gets will come because Hes in Locust student the business he began in Winnipeg nine years ago and took to the As paint America three years now reaches across half a Conti buoyed by sales that leapt from in 1978 to a projected million this Suderman has rolled painting into a year round concern employing 11 people full in fact his biggest problem right he is spreading too too i Start up Chicago and the next year in in san he said recently in to costs spartan Mcgillivray Boule Vard i never want to expand if i know i cant handle i want to free up some time to Ana Lyme what has what happened is that Suder Boyish Good looks give the impression Hes barely old enough to be one of his companies let alone the brains behind the operation has become Leader of an army of 700 stretching from California to Winni Peg he expects them to paint their Way to million More in Revenue this year than 1986s tally of not bad for a Guy who started off painting his neighbors cottage just to pass the time one summer when he was i wanted to work at the Lake and syst stumbled onto the e he either estimated that first cottage Job too quickly or painted too ending up with Only about per hour after i didst know what i was he Busy All summer but he Learned word got around and i ended up doing about five other cottages that he certainly made More than hed earned the year before As a pin boy at a Bowling the idea of being his own Boss looked even better after the second his first full summer painting i knew if i stayed in Winnipeg and did As Well As the year before it would be unbelief hiring a couple of he pulled in Over three most of his Kelvin High buddies were earning about from their summer by the end of locusts Sec Ond full Suderman had enough work to keep about 15 Stu dents Busy All he bought a truck and Here i was in my teens employing University his take jumped to most of Sudermann Cash helped support his downhill ski As the youngest of five children in a set Remmers business things happen sport minded his aim of a downhill ski racing career didst seem too far out of the fort Rouge youngster was winning the Manitoba championship three years in a during a High school stint with the Canadian National Junior team in 1980 he began to realize that even Hotshot Down Hillers cant make much of a living on the instead of Riding the he decided to paint by the time i was 18 i began to realize the everywhere you look something needs painting and i if i could just reach some of eventually branching out to a loosely structured franchise opera managers pay no franchise fee but Are taxed seven per cent of Gross sales for using the name Sudermann operation grew until it had outgrown Winni but unlike North americas big Gest painting College pro a 16yearold student painting company that began in Thunder Bay and now has 400 franchises Suderman decided to bypass his native concentrating on the american Market we re not bumping Heads with unions by the time i finished my de Gree he graduated with a univer sity of Manitoba economics degree in 1984 we had five 70 painters and a commercial division in i realized we get much while competing in a pedal Bike race at Minneapolis in i had decided id rather expand there than to Minneapolis has million people to Regina it was just a business decision i had to he rented an apartment and opened an american Immi Gration was very receptive to the they liked the fact id be employing paint America now has full time people in Mil Waukee and Suderman says the average House painting Job costs about although some can run several find his strategy of cutting contractors rates by 40 per cent i resist were very pleased with the a Laidlaw Boulevard Cus Tomer said after Locust finished painting her Tuxedo Home two weeks we got four estimates and there was a differ but despite Sudermann claim were not bumping Heads with the a spokesman for the International brotherhood of painters and Allied trades says Winnipeg student painting companies do Cut into the professionals Treyve taken about 90 per cent of the residential redo Market houses painted for a second says John Busi Ness manager Owoo member local v he also says student painters Arent sufficiently our members serve a fou year apprenticeship and go to Trade competent Crews wed like to put All the students to but at a fair rate of our lowest a firs year a is but id guess that one of the student compan ies top Suderman says his managers pay from to per hour and he the Crews Are managers attend a 25hour training seminar where there taught everything from painting to like any Batch of theres always a bad but we Haven had any serious problems just some people who need More guidance than painters Are trained for six he there were 40 american and seven Canadian managers last managers receive a line of credit to Purchase rollers and an old the company provides Caps and with about 10 painters a manager should be Able to make and have the equity at the end of the Suderman he adds that when selecting Man we look for anybody who has shown Diligence and dedication at anything such As music Les sons or sports wants to people who would look at what Ive achieved and i could never do probably there but four years i never thought Idle where i i didst know what i could solid business tanned and he Doest show the Strain of jetting Between paint americas offices and Minne Apo his Home for the past three but he denies that his share of last years take has him hankering for even greater Suc Bob Suderman we look for anybody who has shown Diligence and whats important to me is build ing a solid Ive been in it for 10 years and take a lot of Pride in everything i make goes Back into the expanding to California int a cheap i dont have a lavish drive a with his penchant for going it Suderman has rejected Sev eral offers to sell his but he has left the buyout doors saying simply not at this i dont know if its an ego thing or what but i never liked working for someone in not that kind of material i like calling the shots its probably better that Hes Tough on himself and a partner might not stand up too Well under the in never too satisfied with any he it seems great on the outside but in always thinking about where we could have been danger lurks in financial Industry voyage into unknown Waters by Brenda Dalglish the Canadian press if Arthur Trebilcock were alive he might consider burying his savings in a tobacco can in the Back Trebilcock headed the Toronto Stock Exchange in the 1930s when it sorted out the Nasty problems Unco Vered by the Stock Market crash of one of the financial disasters that brought on the great depress but much of the work done by Trebilcock and his contemporaries is the worlds Money handling Industry is setting off on a voyage into the As Canada and the other economic Powers abandon the financial system that was created using the lessons taught by the de on Board Are Canadas Trust and insurance securities firms and their customers anyone with a Bank an an insurance policy or a pension Complex issues but where this voyage will end and what misadventures it May meet can Only be guessed at along the regulators will have to tangle with a number of Complex issues d How can conflict interest abuses be prevented d who will regulate the new inter National financial Industry d How much riskier is the new system and what can be done to reduce the dangers in Trebilcock the Toronto Exchange and other regulators toughened their hoping to end the abuses that contributed to the financial collapse of for they increased mar Gin the amount invest part 2 bang Canada joins the International move toward deregulation of the financial services Industry at the end of the following article looks at some of the problems and risks that May be involved in what has been dubbed the big tors have to put up to buy a lenient which Al Lowed investors to borrow As much As 90 per cent of the Cost of a Stock were blamed for these Verity of the 1929 the Exchange tightened rules so that investors had to put up at least 50 per cent of the at the same time on other politicians were coming up with a new four pillar financial it carefully segregated the four Basic areas of financial services Trust Stock Selling and they wanted to prevent the kind of risky business conflicts of interest and interconnections of Cap ital that contributed to the failure of the financial system in the among other Banks were stopped from acting As Stock Bro before the the Bank of for was one of the biggest securities dealers in As the memory of the depression financial institutions began to push for the right to expand their we talk about the four says Robert financial ser vices spokesman for the Consumers association of each Cash cow thought the grass on the other Side of the Fence looked gradually the distinctions among the four pillars began to blur Banks were allowed to sell Mort while Trust companies gained the right to make commercial in the end of the four pillars was signalled last december with the announcement that the fed eral and Ontario governments would allow companies in any of the four sectors to operate in the others with Only a few for would not be Able to sell introduction of the new rules dubbed big bang after the massive changes that jarred the London financial Market last fall is set for june that was the easy observers now come the hurdle cleared with the end 6f the old four pillar regulators must devise new ways to protect Consumers a task complicated by Federal provincial jurisdictional Ottawa regulates Banks As Well As federally chartered Trust and insurance the provinces watch Over their securities Indus parts of the Trust and insurance business and other regional financial institutions like credit unions and Crisses the two Levels of govern ment appear to have cleared away one major jurisdictional hurdle by agreeing to share responsibility for regulating the securities but fundamental regulatory both within Canada and in remain consider the potential conflicts of interest and self dealing abuses pos sible in these scenarios d a big manufacturer of computer components has multimillion Dollar Loans with Bank the manufacturing company develops Finan Cial problems and Bank a pressures it into paying off some of its Bank debt by Selling shares to raise suppose the manufacturing com Pany decides to use Bank As Securi ties subsidiary to sell the share to whom does the securities subsidiary owe its greatest responsibility its the or to customers who will be sold the shares will the securities firm be As meticulous in the Way it recommends the shares to investors As it would if it was not owned by the Bank does this change introduce More risk in the financial system headaches come with the new rules the danger in transactions be tween two related companies is the Lack of objectivity in assessing the Price and terms of the a Federal government policy paper for that Ottawa proposes to ban some types of set up internal controls to Monitor others and Force the disclosure of fees and commissions earned on transactions Between related com the Federal government also Dis approves of no financial companies owning financial for Bra scan part of the Toronto Bronfman family business controls Triton financial which includes Royal Trust and London also in the Bra scan Domain Are mining giant Noranda and food and beverage conglomerate John Labatt Tom Junior Federal finance believes it is safer for financial institutions to stand on their Ottawa plans to impose ownership restrictions on exist ing financial commercial conglomerates and limit their it also wants to prevent new ones from the Ontario government takes More lenient approach to ownership it does not plan to ban any trans actions but will require extensive disclosure of information on deals involving related companies Leav ing investors to assess the risks for at the International the problems facing regulators Are even bigger the problems include issues that dont add much risk to the system for the Lack of International accounting which makes it difficult for investors to compare the financial statements of similar companies based in different but they Range to issues that raise serious questions about How much risk is inherent in the new for while most countries have extensive Domestic regulations governing their internal financial there Are almost no rules for the increasing number of deals that take place on an International the first breakthrough in establishing International standards occurred Early this year when Britain and the United states agreed to develop joint capital standards for their banking regulations compromised capital requirements a primary method of ensuring stability of a financial institution Force Banks to keep a certain amount of Cash readily available for customers who want their Money agreements like this which ensure everyone plays by the same increase the safety of the International system by making sure that advantages dont flow to the country that sets the lowest Stan Dards for its but it is still Only a tiny step in the right the Lack of International regulations compromises the effectiveness of Domestic says Pearce president of the Toronto Stock next the Bronfman financial supermarket Auto cad new available in v Central graphics 500 Street my Canada pm 0x7 updates As Low As Call Dieter at 9430674 Autna i Xii old s Mosi idly used j v no ;