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Are you ready to start?
What is an entrepreneur?– "An entrepreneur is a person who
assumes the organization, management and risks involved in a business venture."
Qualities that make a successful entrepreneur:
– Decision Maker– Analytical Ability (problem solving skills)– Good Interpersonal Skills – High Drive (highly motivated)– Risk Taker
What you need:
Personal skills
Business knowledge
A good idea!
Start-up money
Support
Good personal credit history
What you need:
Personal skills
Business knowledge
A good idea!
Start-up money
Support
Good personal credit history
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Lets get down to business
From a legal stand point
From a fiscal stand point
From an insurance stand point
Choose the form of business:
– Sole proprietor– Partnership, or– Incorporation
Register your form of business
Get a business licence
Get a business number
Register for GST and PST
Buy business insurance
– Liability– Disability– Key people– Business interruption
Prepare to have employees
First steps to start a business:
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Your proposal
Your proposal will include your business plan as well as additional documentation such as:
–Market research
–Industry trends
–Other information supporting your project’s viability
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Your business plan
What is a business plan:
A business plan can help you detail your goals, and serves as an operational plan for achieving them
Everyone who is going into business and who is operating a business requires a business plan
Why a business plan? It describes your business
It conveys your vision to potential investors
It explains your business goals
It raises potential problems and ways to solve them
It states the amount of capital required to finance your venture
Why a business plan? It describes your business
It conveys your vision to potential investors
It explains your business goals
It raises potential problems and ways to solve them
It states the amount of capital required to finance your venture
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Your business plan
What it should include:
1. An executive summary
2. A description of your company
3. A description of your management team
4. An overview of your marketing plan
5. Human resources plan
6. Financial planning
7. Appendices that boost your credibility
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Your business plan
What it should include:
1. An executive summary Your industry, products/services, competitive
advantages, amount of financing required
2. A description of your company Legal status, date company founded, mission,
objectives and vision
3. A description of your management team Roles, experience and competence, education
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Your Business plan
Overview of your Marketing plan
Is there a proven market for your products or services?
Who are your competitors?
What is your client profile?
What will you offer that is better?
How will you get them to switch?
Overview of your Marketing plan
Is there a proven market for your products or services?
Who are your competitors?
What is your client profile?
What will you offer that is better?
How will you get them to switch?
4. Marketing PlanFour sections should be detailed:
1. Your product or services Why your products/services will sell?
2. Your market potential Target clients, market size and
penetration, demographic factors
3. Overview of your competition Their strengths and weaknesses
4. Marketing strategy Overview of your Marketing plan, media
chosen, partners, etc.
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Your Business plan
5. Human resource plan– Determine how you will recruit, retain and develop employees:
– HR Policy– Subcontracting and outside professionals– Organizational and development plan
6. Financial planning– Forecasts, balance sheet, statement of income, cash flow
budget
7. Appendices that boost your credibility– Brief bios of your management team, market studies, client
testimonials, etc.
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Finding financing
What lenders look for:
Proof of experience, skills, determination, and self-confidence to successfully carry out your project
Your personal credit history – past performance can affect perception about how you will perform in the future
Your business plan must be clear, structured, and short, but it must cover all elements of your business idea
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Finding financing
What lenders look for:
For new and existing companies:
– Forecast for next 2 years
– A cash flow analysis that describes your forecasts:
• Shows the seasonal fluctuations in your business and prescribes the need for capital
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Financing to get started
Finding initial financing:
Proof that you have a long-term commitment to your project
Proof that you have a long-term commitment to your project
1. Personal investment money: Cash/collateral on your assets.
Bankers consider this asset as “patient capital”
Bankers consider this asset as “patient capital”
2. Gift capital or love money:Money loaned by loved one and that will be repaid later.
3. Investments from others:Money you raise from investors.
Bankers regard such investment highly
Proof that your idea is sound but can often diminish the degree of control you have over you own company
Bankers regard such investment highly
Proof that your idea is sound but can often diminish the degree of control you have over you own company
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Financing to get started
Finding initial financing:
Policy for paying suppliers based on their payment conditions (often 30 or 60 days after delivery).
Check with each supplier, since many offer discounts for quick payment.
Policy for paying suppliers based on their payment conditions (often 30 or 60 days after delivery).
Check with each supplier, since many offer discounts for quick payment.
4. Supplier (A/P) Financing:
You may have access to grants, subsidies or tax credits to help recover expenses such as salaries or equipment.
You may have access to grants, subsidies or tax credits to help recover expenses such as salaries or equipment.
5. Grants, Subsidies and Tax Credits:
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Financing to get started
Money loaned to you, not your business
Loan secured by your personal assets
Many banks offer this type of loan to start-up businesses or those with few assets (land, building or equipment)
Money loaned to you, not your business
Loan secured by your personal assets
Many banks offer this type of loan to start-up businesses or those with few assets (land, building or equipment)
1. Personal Loan
Type of loans:
Short term, flexible financing that you manage yourself
Borrowing as much as you need up to a determined amount
Secured by your inventory and accounts receivable, and your bank can require full repayment at any time
Short term, flexible financing that you manage yourself
Borrowing as much as you need up to a determined amount
Secured by your inventory and accounts receivable, and your bank can require full repayment at any time
2. Operating Loan- Also called Line of Credit
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Financing to get started
Long-term financing option for fixed assets such as equipment, land or building
Long-term financing option for fixed assets such as equipment, land or building
3. Term Loan
Type of loans:
Long-term financing to cover projects such as Growth, Export, Marketing, e-Business, R&D, etc.
Help provide you the cash flow to fuel your growth
Complement your existing line of credit
Long-term financing to cover projects such as Growth, Export, Marketing, e-Business, R&D, etc.
Help provide you the cash flow to fuel your growth
Complement your existing line of credit
4. Working capitalLoan
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Financing to get started
About BDC: BDC is a Crown corporation with a mission to help Canadian
entrepreneurs start and grow their companies
BDC acts as a complementary lender in the market and operates on a commercial basis (must be financially sustainable)
Building tomorrow's businesses: For over 60 years, BDC has provided flexible financing and
consulting solutions that are tailored to the needs of entrepreneurs and designed to help their business prosper
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Why choose BDC
BDC can provide support to entrepreneurs who: Are in the start-up or early growth phase
(first 12 months of sales) Can demonstrate realistic market and sales potential Possess experience or expertise in their chosen field Demonstrate key personal characteristics of a successful
entrepreneur Have assembled a competent management team Have invested reasonable financial resources in the
enterprise Can provide personal and credit references
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Why choose BDC
Co-Vision(Start-up financing program)
Term Financing(Flexible long-term financing)
Customized term financing up to $150,000
For new businesses demonstrating long-term viability
BDC can provide personalized management support
Can not be used for change of ownership
For a variety of commercially viable projects such as:
– expansion– plant overhauls– purchase of existing businesses – acquisition of fixed assets
In some cases, may be used to reconstitute working capital depleted by capital expenditures or to finance sales growth
BDC start-up solutions at a glance:
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Why choose BDC
BDC start-up solutions offer a total solution for entrepreneurs
BDC may be able to offer:
– Up to $150,000 in financing– Up to a 6-year repayment period– Progressive or seasonal repayment options
tailored to your business’s cash flow– Consulting and mentoring solutions
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Good to know…
Insights on investors and lenders
Many entrepreneurs are intuitive and rely on their experience, industry knowledge, and gut feelings to tell them whether a project “makes sense”
Most bankers are methodical, and won’t draw conclusions quickly- especially if they don’t have all the facts before them
Given that they don’t have your technical knowledge, they will want to see that you have thoroughly analyzed and planned your project
A thought out business plan is key to your success
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Useful resources
To help you get started:
Strategis (Industry Canada): www.strategis.ic.gc.ca– Useful resource to find industry-related information and tons of
information on what you need to do to get your business started
Canada Business Service Centre: www.cbsc.org– Excellent resource centre to help in writing business plans,
determining types of loans and other resources that may be applicable to your business
BDC: www.bdc.ca/startup or 1-800 INFO BDC– # 1 resource for all your financing and consulting needs.
Templates of business plans available and lots of pertinent info.
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Thank you!
To find out more about BDCContact: Marie Bruno, Senior Manager153 Great Northern RoadPhone: (705) [email protected]
