PROFIT W100: Frequently asked questions

Benefits of participation

1. What is the PROFIT W100? The PROFIT W100: Canada's Top Female Entrepreneurs is the authoritative ranking of women-owned companies. Results of our annual survey, with stories profiling these female business leaders, are published in the November issues of PROFIT and Chatelaine.
2. Why should my company enter the PROFIT W100? Appearing on the PROFIT W100 ranking can result in many benefits, including invaluable national and local publicity, increased employee motivation, industry accolades and sales to new customers.

Ranking methodology

1. How is the PROFIT W100 ranked? The 14th annual PROFIT W100 ranking of Canada's Top Female Entrepreneurs will list the country's most successful female entrepreneurs based on a proprietary formula that considers the size, growth rate and profitability of the entrepreneurs' companies.
2. How is revenue recognized for the ranking? PROFIT and Chatelaine define gross annual revenue as per generally accepted accounting principles (GAAP). Sales that cannot be booked as revenue under GAAP, such as gross billings, do not count for the purposes of the PROFIT W100 ranking. (For instance, a travel agency can claim as revenue its commissions on airline tickets sold, but not the total dollar value of the tickets.) Gross revenue must be reported net of returns and discounts. Franchisors must report corporate revenue only. However, companies in these situations can request that PROFIT and Chatelaine publish their gross billings in addition to their actual revenue.
3. How are candidates' claims verified? All candidates must submit complete financial statements.

Eligibility requirements

1. Who can enter the PROFIT W100? To qualify for the PROFIT W100: Canada's Top Female Entrepreneurs, a company must:
   • Be headquartered in Canada with significant operations in Canada;
   • Be independent (i.e., not a division or subsidiary, except of a holding company);
   • Have more than 50% Canadian ownership if a privately owned company; public companies with 50% or less Canadian ownership will be judged by PROFIT on a case-by-case basis;
   • Operate at arm's length from related companies that have also declared their candidacy for the ranking.

   Other qualification criteria are as follows:

   • Management role: Candidate(s) must have a senior management title (e.g., CEO, president, managing partner) and contribute significantly to the daily management or strategic direction of the firm.
   • Ownership stake: Nominee(s) must have a substantial ownership stake relative to the ownership structure of the business. Generally, women entrepreneurs who own more than 25% of a privately held company or more than 5% of a public firm are encouraged to apply. (PROFIT determines eligibility on a case-by-case basis; the intent is to include as many candidates as possible.)
   • Partnership: Female business partners will be considered for joint ranking if they meet the ownership criteria noted above and occupy senior positions at the company.
2. Are non- and not-for-profit enterprises eligible? No.
3. Are franchisors or franchisees eligible for the PROFIT W100? Franchisors are eligible, but should report only corporate revenue, not system-wide sales. Franchisees are not eligible.
4. Can related companies apply separately? In the case of related firms that do not operate at arm's length from one another, only one of those companies is eligible. Also, divisions and subsidiaries of operating companies are ineligible.
5. My company reports in U.S. dollars. Am I still eligible for the PROFIT W100? Yes.

How to enter

1. How do I enter the PROFIT W100? Simply fill out the short electronic ballot to request a full application questionnaire. Contact information appears on the entry form.
2. Should we report fiscal or calendar revenues? Fiscal.
3. What happens after I enter the PROFIT W100? You will be sent a short but detailed questionnaire in June 2011. Candidates must return this questionnaire plus documentation (i.e., financial statements) supporting their revenue claims.

Terms and conditions

1. Can my company be disqualified? PROFIT and Chatelaine reserve the right to remove any company or individual from the PROFIT W100 at any time if PROFIT or Chatelaine determines that inclusion of that company would discredit PROFIT or Chatelaine. PROFIT and Chatelaine also reserve the right to withdraw invitations to events related to the rankings.

For more information

1. I still have a question. Who do I call? If you need more information, please call our toll-free PROFIT hotline at 1-800-713-GROW (1-800-713-4769).