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Business Week LGS _3 PAGE 26 â€" WATERLOO CHRONICLE, WEDNESDAY MAY 11, 1988 lan Kirkby Chronicle Staff The growing concern over Acquired Immune Deficiiency Syndrome (AIDS) is partly responsiâ€" ble for fuelling the growth of Waterloo‘s Handsâ€" On Packaging Ltd. The Dotzert Ct. company has created a new and better way of packaging surgical gloves, and disposable examination gloves and clothing for the health care field "which have been in demand because of hysteria over viral transmisâ€" sions," said President Bruce Zagrodney. The company, which exports 98 per cent of its production, "turned down more business than we accepted last year. We have some very large U.S. government contracts we‘ve put on hold until we have the financial and production capacity." Handsâ€"On currently packages one million pairs of gloves monthly, and is gearing up to increase that number to four million pairs monthly by the end of summer. "It‘s all preâ€"sold. All of our dealers are at five to 10 per cent of allocation right now. We have not taken on anything since Dec. 1987." The comâ€" pany has created 44 jobs since it was started in Nov. 1986, he added. It is a remarkable success story in an industry which Zagrodney, 34, describes as "traditionally one of slow sell." Handsâ€"On provides customers with an easyâ€"toâ€"use, untearable, sealed and waterproofed sterilized package â€" one that is the Exercise caution with financial planners AIDS fear aids enormous growth of Handsâ€"On Packaging Stockbrokers need a license to work; so do insurance agents and mechanics. Personal financial planners do not. You don‘t need any credentials to call yourself a financial adviser or personal financial planner. None. Consider Boris "Bo" Regaard, certified in 1985 as a financial planner and a member of the International Association of Financial Planâ€" Bo Regaard is a Tampa, Florida, poodle. His owner, himself a financial planner, registered the mutt to show that the association, the title and the nice certificate don‘t mean squat. Because these people aren‘t licenced, catalogued or regisâ€" tered, nobody even knows how many there are. One thing that‘s become clear, though, is that their numbers are multiplying. So where can you go for real financial planning advice? What are the kinds of planners to watch out for? The big problem is finding an adviser who isn‘t more interested in selling you something than helping you decide what to do. These salespeople account for probably 80 per cent of all the personal financial planners in Canada. They are mostly insurance agents, mutual fund salespeople and account reps for stock brokerage houses, who portray themselves as impartial advisers. Open the newspaper, especially during RRSP season, and you can see the ads for ‘"financial planners" who are giving free seminars on Canadians can be excused for making some wrong investâ€" ment decisions. It often happens because of a simple lack of information. But it also happens because gutless provincial regulators have allowed the financial planning industry to remain unregulated, unsupervised and largely undisciplined. Sure, there are some good planners, but for every honest and conscientious one there are a dozen more who are nothing but salespeople in the cloak of planners. Most Canadian financial planners are practising misrepresentation and deceit. Handsâ€"On Packaging President Bruce Zagrodâ€" ney shows off the eo"r)lznnys’ topâ€"ofâ€"theâ€"line sterile packaging. ZD? ney is wearing a hair net, one of the hygienic precautions taken at the company which packages 1 million surgical gloves monthly. lan Kirkby photo topâ€"ofâ€"theâ€"line in its field. "Our commitment to quality is unquestioned. We offer the best package designs on the market. As a resulty, our products are now starting to sell themselves." Penetrating the American market was instruâ€" mental in the company‘s growth, yet Handsâ€"On ran into trouble getting approval for their packaging from the country‘s Food and Drug Administration (FDA), who viewed their product as significantly different from that produced by other packaging companies. "We ended up being delayed, in our opinion, six months due to the bureaucracy of the system and the treatment of foreign companies, as opposed to domestic U.S. companies. "It‘s an example of a nonâ€"tariff barrier into the U.S. market. ‘"When we finally complied with everything they asked for, we were allowed to sell our product. But they asked for things two and three times over." The FDA approval saw the company‘s fortunes soar. "Within three days of obtaining approval we sold all our 1988 capacity .‘ That capacity will translate into between $5 and $10 million in sales for the company this year. Handsâ€"On has been forced to design and build its own equipment for the expansions this summer. It will be "highly automated, most upâ€" toâ€"date equipment," said Zagrodney. successful investing. Also note that these events are sponâ€" sored by companies that sell financial products, usually mutual funds. And don‘t be fooled by a designation like "certified financial planner‘‘ or be impressed that someone is a member of a trade association of planners. About 90 per cent of the membership are people who work on commission â€" companies pay them to sell things to people who come and ask for advice. It is ridiculously easy to gain membership in these associations, and no federal or provincial guidelines are in place to regulate their conduct. Ask how the planner is going to be paid. If he tells you not to worry because the advice is free, go someplace else. Better to find somebody paid by fee â€" by you â€" than by commission by somebody else. Typically, a feeâ€"forâ€"service adviser may cost you $100 an hour, and some may charge as much as $5,000 for a complete action plan with an annual review. If you are shopping for an adviser, make sure you ask the right questions. o Find out how long the company‘s been operating and who it is affiliated with â€" that is, what financial products does it represent? o Ask what the adviser‘s qualifications are. Being a "certified financial planner‘" just isn‘t good enough. The adviser should have some tax, accounting or law training. Ask to see some of his work, including past plans. Ask for a brief (halfâ€"hopr) Canadian Business Garth Turner Growth at Handsâ€"On is selfâ€"financed. "If we had a $5 or $6 million injection right now, we could put it to use. I‘m turning down $1 million deals weekly because I have no way of financing them. But you have to craw] before you run and I recognize that." Handsâ€"On has developed a strategic plan which aims for yearly sales of $25 million within five years. Niches so far largely unexplored by HandsOn include the food and hospitality It‘s also a good idea to never go with a single opinion. Bounce the same questions off your broker, accountant and bank manager; then compare answers and make your own decisions. Often people who think they need advisers and a financial plan require nothing more than some common sense. It‘s easier to save money than to make it. It‘s better to be a lender than a borrower. You can‘t live beyond your means for very long. There‘s still no free lunch. (from Turner‘s recent book Survival Guide.) Don‘t just throw your life into someone else‘s hands. I‘ve seen a lot of people do that â€" usually dentists, for some strange reason â€" and the consequences can be tragic, especially where an investment was made simply to save on taxes. You should seek help and ask for the information you need to understand the investments you‘re making. Don‘t be talked into borrowing against the equity in your home to buy into a mutual fund, especially if you are retired and the house is paid for. Sleaze "planners" commonly try to pull this off, picking up a 9 per cent commission. Don‘t put money into a savings plan, even if this results in a tax saving, until your debt situation is under control. Remain cautious about the stock market, because it is extremely volatile and may reach new lows. Many mutual funds are based on stock values, so make sure you understand what you‘re buying. Most people who ask me for help have no idea what the funds they‘ve bought really are. session in which he or she can get a general sense of your financial status and make some general suggestions. Get a feel for the adviser‘s competence. Ask for references. Ask if this adviser can recommend other people to carry out the financial plan he‘ll design for you. And ask about followâ€"up help, because changing tax laws and markets mean you‘ll need help. industries and household consumers. Currently, the dental market is being targetâ€" ted by the company. It‘s a market which has grown rapidly due to the AIDS hysteria. "It‘s an overâ€"reaction in our opinion, but overâ€"reaction or not, it has created a demand we‘re attempting to fill." Another largely unexplored market is Canada, something Zagrodney hopes to address in the near future.