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Building a Better Future for Business
Presentation Overview
Overview of what NEDC is, their programs and services
What NEDC looks for
A couple funding examples
Where to start
Assistance available
Examples of businesses and industries that NEDC has assisted.
Building a Better Future for Business
What is NEDC?
Helps start, acquire or expand a business;
A Nuu-chah-nulth owned corporation;
Governed by a Board of Directors representing the 14 First Nations and the NTC.
Building a Better Future for Business
Why Build Businesses?
Create employment Fulfill needs and
wants Keep people in the
community Keep money in the
community More convenience
Building a Better Future for Business
NEDC can help you…
Develop business ideas;
Offer guidance in business planning;
Put together a loan application;
Access other loans;
Match up with a mentor;
Access training resource.
NEDC assists as much as possible.
Building a Better Future for Business
Eligibility
Aboriginal: Status/Non-status First Nation, Inuit, Métis individuals – with proof
Sole-proprietors, partnerships, companies, or other legal entities on or off reserve
Reside and operate or propose to operate the business within the NEDC delivery area
Building a Better Future for Business
Common Funds Available
National Funding: Aboriginal Business Canada – Aboriginal
Regional Funding Business Equity Program - Aboriginal First Citizens Fund – Aboriginal NRT Equity Match – First Nations BDC Loan
Nuu-chah-nulth Specific NTC Forgivable Loan Program – Nuu-chah-nulth only NTC Youth Interest Buy-down – Nuu-chah-nulth only NTC Contribution Program – Nuu-chah-nulth only
Other special and general loan funds
Building a Better Future for Business
Grant vs. Contribution
NOT THE SAME THING! Contributions have conditions attached.
Prove that all conditions of the contribution are met before getting funds,
Funds are only allowed to be spent on approved expenditures,
Business is monitored for up to FIVE years, If conditions not met, then the contribution may have to be
repaid.
Usually, a grant will have minimal to no reporting requirements
Building a Better Future for Business
Aboriginal Business Canada
Must be Canadian Aboriginal
Contributions up to $99,999 ($250,000 Tribes)
Generally 30-40% start-up/expansion/acquisition costs
75% planning/support costs
Referred to as: ABED (Aboriginal Business
and Entrepreneurship Development)
Historically ABDP, ABC, BEF (Business Equity Fund), BEP
Business Equity Program
(what we call ABC since 2000)
Based on ABC program delivered to Vancouver Island region
For business start-up, expansion, and acquisitions, must have a loan and cash equity component
Contributions (<$50.000)
be 19 years or older
reside and operate or propose to operate from Vancouver Island
Building a Better Future for Business
Who is a youthin business?
Aboriginal Business Canada (ABC)
defines a youth as someone 19 to 35 years old inclusive
Building a Better Future for Business
First Citizen’s Fund
Nuu-chah-nulth region Lifetime maximum loan of
$75,000 1.5% administration fee on
all loans which helps pay for business support
A deferred 40% contribution Pay 15% principal, receive 10%
contribution (4 times) 50%-100% of the equity
must be cash (based on loan size)
Building a Better Future for Business
NRT Equity Match
Dollar for Dollar Tied to Commercial
Financing through an approved ACC
Up to $5000 Lifetime Limit (Tribes $25,000)
Max. 25% of Project Costs BC First Nations only
Building a Better Future for Business
NTC Forgivable Loan Program For Individual NCN Members
**Must be attached to a repayable loan
If not receiving other contributions: 40% of repayable loan to
a maximum of $10,000
If receiving other contributions (such as ABC or BEP): 20% of repayable loan to a
maximum of $5,000
Building a Better Future for Business
NTC Contribution Program
For Individual NCN Members Contributions to contract:
Business Plans Feasibility Studies Engineering Studies Environmental Assessments Community Economic Studies Business Support
Equity requirement: 10% (no loan req’d)
Maximum contribution: $25,000Must have the capacity to implement
project. (I.E.; If contracting a feasibility , must have the requirements and intent to start the business if the study indicates viability.)
Building a Better Future for Business
Had Enough Yet??
Don’t worry!You are not expected to be a funding specialist!
Building a Better Future for Business
No Equity Example$20,000 project
Equity - $0 – wrote own business planInterest - Flexible (FCF would be 12%
fixed)
BDC loan $ 20,000Total $20,000
Building a Better Future for Business
FCF Metis Example$10,000 project
*deferred contribution of $6800, therefore repay $10,200 of the $17,000 loan plus interest on the entire loan.
Interest on this loan would be 12% fixed.
Owner’s Equity 15% $ 3,000*FCF loan $ 17,000Total $20,000
Building a Better Future for Business
NCN Expansion or Acquisition
$20,000 Project
*FCF Loan: $4,000 deferred contribution (40% of loan) if paid back as agreed.
Owner’s Equity10%
$ 1,000
NRT Equity Match 1,000
BEP Contribution 30% 6,000Loan – may be FCF* 10,000NTC Contributions 2,000Total $20,000
Building a Better Future for Business
Nuu-chah-nulth Youth or Startup
$20,000 Project
*FCF Loan: $3,340 contributed to the loan if paid back as agreed.
Owner’s Equity10%
$ 1,000
NRT Equity Match 1,000
BEP Contribution 40% 8,000Loan – may be FCF* 8,350NTC Contributions 1,650Total $20,000
Building a Better Future for Business
Sample Funding Application Process
Discuss with Officer
Submit Funding Request
Submit Plan
NEDC Analyzes Plan
Decision Made
Contract(s) Signed
Conditions Met
Implement Plan
Submit Claims
Building a Better Future for Business
What does NEDC look for?
Suitable applicant Eligible for assistance and funds Credit Experience & Understanding
Plan makes sense The business is feasible and viability
Security
Building a Better Future for Business
Risk Exercise
Your friend asks you to borrow money for their vacation. Four loan & repayment options:A. Do not lend moneyB. Only lend some of the money and repay monthlyC. Lend all and repay monthlyD. Lend all and repay when get back
Discuss Pro’s & Con’s of Options
Building a Better Future for Business
Considerations
What affect do these situations have on your decision:
Your friend shows you a detailed plan about how they will get the money to repay you
Another friend tells you she lent money to your friend and never received it back.
Your friend will give you a car until the loan is repaid.
Your friend doesn’t have a job or has a really good job
You have more than enough money
Building a Better Future for Business
Credit is Important in Businesses
How do I keep a clean credit rating? Pay at least the minimum
payment due on all your bills.
Do not borrow more than you need
Do not bounce cheques Contact your creditors if a
problem arises and work out solution
Building a Better Future for Business
Credit
One free credit report/year Look for “free credit file”
if you want a free copy Or pay $15+ for online
version Report any errors
download form online
Equifax Trans Union Creditwww.equifax.ca www.tuc.ca
Building a Better Future for Business
Beware of Credit Vultures
Credit is now an INDUSTRY Cards, counselling, repair services,
lawyers, etc. Use services with caution
Fraudulent claims Hidden service charges, high fees,
etc. Lots can be done on your own! Non-profit:
www.creditcounsellingcanada.ca
Building a Better Future for Business
Steps to Repair Credit
1. Get a credit report2. Review it3. Correct with bureau if
necessary4. Repair credit
Repay the negative reports and ask creditor to note on your report
5. Pay down/off debt Recommend paying off highest
interest rate debt first (pay minimum payment due on all of them regardless!)
6. Take other actionVisit www.moneyproblems.ca for more information
Building a Better Future for Business
Step 1: Look for a need or problem (opportunity).
Step 2: Do market research.
Step 5: Choose the BEST idea!
Step 6: Research needed money
Step 9: Implement your plan!
Step 3: Think of lots of possible solutions to meet the need or solve the problem
Step 4: Assess, evaluate, do market research.
Step 7: Research needed human resources (people)
Step 8: Develop business plan
Where Do I
Start?
Building a Better Future for Business
To make it easier:
Base it on what you KNOW Target your market Be flexible Keep good notesIf you start a business:Open a separate business account
Building a Better Future for Business
Business Opportunities
Most opportunities are personal What skills do you have? What do you like to do? What does your community need? Or
what do other communities need? Match your skills, interests and
knowledge with your communities needs
Building a Better Future for Business
How do Businesses Fail?
Not enough planning before start up;
Not monitoring financial position;
Not understand the relationship between price, volume, and cost;
Failure to manage cash flow;
Failure to manage growth;
Failure to borrow properly;
Failure to plan for transition.
Most people don’t plan to fail - they fail to plan!
Building a Better Future for Business
What do I need to start a business?
Idea;
Experience;
Cash equity;
Research into the market.
Building a Better Future for Business
Do You Have What it Takes?
Passion for your business;
Inner drive to be independent;
Willing to take risks;
Set and achieve goals;
Flexible and adaptable;
Confidence in yourself;
Support
Building a Better Future for Business
What type of businesses has NEDC assisted?
Businesses in MANY industries: Tourism (adventure, eco, etc.), water taxis,
fishing and aquaculture, accommodation, manufacturing, professional services (lawyers, dentists, etc), hair salons, home based businesses, art, food services (cafes, restaurants, catering, etc.), entertainers, transportation, forestry, convenience and retail stores, spas, landscaping, bookkeeping, communications (radio station, marketing, etc), hydro, ETC!
Building a Better Future for Business
NEDC Assisted Businesses
Himwitsa Enterprises (House of Himwitsa, Sea Shanty Restaurant and Himwitsa Lodge)
Aa-aa-nuk Lodge, Kwisitis Feast House,
Constuction: Les Sam Construction, Potter Construction, Shae Doiron Painting, PC Siding & Soffits, Alberni Colour Corner
Electricians: Braker Electric Ltd, Mace Electric
Ahtsik Gallery, Native Art Cedar House (Huu-mees ma-as), Kwisitis Gift Shop (Wya)
Tin Wis Resort Ltd.
MicroHydro: Upnit Power - China Creek Microhydro
Pacheena Bay Campground
Tseshaht Market
Water Taxis: John Tom, Cougar Island, Max’s, GI Watertaxi, Eagle Adventures, etc.
Duffin Cove Resort, Seaside Adventures
Consultants: White Raven, Secluded Wellness Centre
House of Win-Chee Aboriginal Fashion
Hair Studios & Spa: Clip 21, EM Salon & Spa
Professionals: Roset Lanyon Chartered Accountants
And many more!
Building a Better Future for Business
Resources (other than NEDC)
Entrepreneurs Family & Friends Consultants Aboriginal
Business Mentor Program
Aboriginal Best Band or Metis
office Friendship Centre
Universities, colleges, business training centres, adult education centres
Bank business departments
Industry specific associations and publications
Building a Better Future for Business
Resources (Other than NEDC)
Business Network International
Women’s Business Network
ABSN & firstbusiness.com
Aboriginal Youth Mean Business
Chamber of Commerce
Small Business BC
Wage Subsidy Programs
Employment & Training Programs
Building a Better Future for Business
Other Funding Sources
Bank – take on debt Line of Credit Credit Card Overdraft
Investors – give up ownership Other
Love money – family, friends Fundraising – incl. Crownsourcing Grants/contributions
Building a Better Future for Business
Assistance Available & Info Sources
Mentors Other business people Business Counselors NEDC, Community Futures, INEO,
Chamber of Commerce, etc. Internet Family & Friends Find people you trust to talk to!
Building a Better Future for Business
What should you do now?
Save $$ Credit Survey your ‘target market’ online
surveys, phone interviews and face-to-face discussions & record results
Think about what you would risk Investigate funding alternatives Prepare to work hard Buy local Be curious!
Building a Better Future for Business
What should leadership do?
Support and encourage local businesses
Make policies and processes to encourage business in various areas
Buy local Separate politics from business Encourage strong work ethics. Ensure training is provided.
Building a Better Future for Business
NEDC is Here to Assist
Located on Tseshaht land in it’s own office beside the Tseshaht Market
724-3131
1.866.444.6332
7563 Pacific Rim Highway
Port Alberni, BC
V9Y 8Y5
www.nedc.info