Kevin Bourne, founder and CEO, SHIFTER.Supplied/David Leclerc
When Kevin Bourne launched the media company SHIFTER in Ottawa in 2013, making money wasn’t the priority. Instead, he wanted to highlight the city’s arts and culture scene, which he felt wasn’t being properly covered.
His growth as an entrepreneur has highlighted a common challenge: the line between business finances and personal finances can be hard to draw. Owners have to decide how much to pay themselves, how much to reinvest and how to protect their families from slow periods or unexpected shifts in the market.
For Mr. Bourne, his company and his financial education have evolved in tandem. SHIFTER began as a paid quarterly digital magazine, before morphing into a free online publication to “get the brand out there,” he says. Today, the company combines arts and culture journalism, branded commercial content, and film and TV production.
As SHIFTER expanded its client roster, Mr. Bourne had to manage the money coming in, deciding how much to reinvest in the company and how much to keep aside for himself and his family. He and his wife, Koliah, co-owner of the business, have three children. The couple have RRSPs, TFSAs and stock investment accounts, as well as savings accounts for their children.
“Putting aside money is very important,” he says. “We believe in building your storehouse.”
Entrepreneurs like Mr. Bourne “put it all on the line” when starting a business, says Karen Craft, president and CEO of Ottawa-based advisory firm CraftXecs. Having solid personal financial plans and perhaps revenue streams outside the business, such as investment properties, can make a huge difference. “The economy can change at a moment’s notice,” she says.
Mr. Bourne is aware, noting that, as entrepreneurs, he and his wife have no pension plan. “We have to take on the responsibility, making sure we’re securing that future [so] we’re comfortable.”
Occasionally, his financial reserves have had to act as a backstop, with the couple dipping into their savings when business has been slow. “You have to try to set aside as much as you can when things are going well business-wise. You’re really subject to the whims of the marketplace,” Mr. Bourne says.
Over the years, the ways he has balanced personal savings vs. business reinvestment have fluctuated, especially when the family moved to Toronto in 2022. The move coincided with SHIFTER’s expansion into TV, with a reality dating series called A Date in the Life.
Relocating and expanding did create some “financial volatility,” says Mr. Bourne. While reinvesting into a business can spur growth, it can also leave personal savings dwindling. Ms. Craft advises entrepreneurs to put aside three to six months of reserve funds to help withstand the “messy middle” of business growth, ensuring their payroll and any overhead costs are covered while they find their financial foothold.
When entrepreneurs are making a new business move, she also advises them to prepare for the worst-case scenario and have a circle of experts – from a business coach to an accountant – to give them objective advice. “You don’t want to get too caught up in your own view of the world,” she says.
Mr. Bourne admits that the move to Toronto, where he and his wife grew up, was more financially challenging than he and his wife anticipated. Despite the temporarily reduced business income, SHIFTER is now accessing new opportunities in Toronto with key players in the entertainment industry. Mr. Bourne is also a Golden Globes voter, giving him access to interview A-list Hollywood celebrities.
Koliah, a production accountant by trade, runs SHIFTER’s finance and operations. The two of them are the company’s full-time employees, managing a roster of subcontractors.
In the early days, Mr. Bourne says SHIFTER was created from “pure excitement” with no business plan. Today, he spends more time mapping his moves, but even with a robust strategy in place he accepts that there are always periods of uncertainty when you’re your own boss. “I have friends who look at my life and are like, ‘I could never do what you do.’”
For a business to survive, Ms. Craft says the founder must have an “incredible ability to be resourceful and create something out of nothing.”
Mr. Bourne hopes to see SHIFTER expand beyond Canada, and take on more film and TV projects. Although retirement is a long way off, he is open to possibly selling the business one day. However, he hopes that one of his children who are currently 10, 13 and 16, will one day take over. “It’d be nice to keep things in the family,” he says.