When speaking with your credit card or loan provider about assistance with credit repair, it’s important to communicate clearly, honestly, and with a strategy in mind. Here are some key points and phrases to consider:
* Express Willingness to Pay: Start by affirming your commitment to paying your debts. Say something like, “I am committed to meeting my financial obligations and want to ensure I’m doing so in a way that also helps me repair my credit.”
* Ask for Specific Adjustments: If you’re struggling with high-interest rates or fees, ask if they can be adjusted. You might say, “I’m finding the current interest rates challenging and am seeking ways to reduce my financial burden. Are there any options for lowering my rate?”
* Request a Payment Plan: If you’re behind on payments, ask about setting up a manageable payment plan. Say, “I’d like to discuss setting up a payment plan that is realistic for my current financial situation.”
* Inquire About Hardship Programs: Many lenders offer hardship programs for temporary relief. You can ask, “Do you offer any hardship programs or temporary adjustments for customers who are experiencing financial difficulties?”
* Seek Advice on Credit Improvement: You can ask for suggestions on how to use their products to improve your credit. Try, “What are your recommendations for using this account to positively impact my credit score?”
* Negotiate for Pay-for-Delete: If you have collections, you can attempt a pay-for-delete negotiation. This is where you ask if they would consider removing the collection from your credit report upon full payment. However, be aware that not all creditors agree to this, and it’s less common now.
* Discuss Balance Transfer Options: If you have high credit card balances, ask about balance transfer options to lower interest cards. Say, “I’m interested in consolidating my credit card debt and am looking for options with lower interest rates.”
* Request a Credit Line Increase: This can help lower your credit utilization ratio. Make sure to clarify, “I’m not looking to increase my debt, but to improve my credit utilization ratio. Can we discuss the possibility of increasing my credit limit?”
* Clarify Reporting Practices: Ensure that your payments are being reported to the credit bureaus. Ask, “Can you confirm that my payments are being reported to all three major credit bureaus?”
* Express Gratitude and Openness to Solutions: Always thank them for their time and express your willingness to find solutions. You might say, “Thank you for considering my situation. I am open to any suggestions you might have.”
Remember, while these approaches can be effective, the responses you receive will depend on the lender’s policies and your specific financial circumstances. Always approach these conversations with a plan and be prepared for different outcomes. If you’re unsure about how to negotiate with creditors or manage complex credit issues, seeking advice from a credit counselor can be very beneficial.
User

You
give me a few letter or emaiol tempaltes to use
GPT

Fastest Credit Repair Methods
Certainly! Here are a few templates for letters or emails you might use when communicating with your credit card or loan provider regarding credit repair and related concerns. Be sure to personalize them with your specific details.
Template 1: Request for Lower Interest Rate
Subject: Request for Interest Rate Reduction
Dear [Credit Card Company/Lender’s Name],
I am writing to discuss the interest rate on my account [Your Account Number]. I have been a customer with [Credit Card Company/Lender’s Name] since [Year] and have always strived to maintain a good payment record.
Due to [briefly state your reason – financial hardship, market rate changes, etc.], I am finding it increasingly challenging to manage the current interest rate. I would like to request a review of my account for a possible interest rate reduction. A lower rate would greatly assist me in managing my payments more effectively and continue to be a responsible account holder.
I appreciate your consideration of my request and look forward to your positive response.
Thank you for your time and assistance.
Sincerely,
[Your Full Name]
________________

Template 2: Hardship Program Inquiry
Subject: Inquiry About Hardship Assistance Programs
Dear [Credit Card Company/Lender’s Name],
I am reaching out to inquire about any hardship assistance programs that might be available for customers facing temporary financial difficulties. I have been a loyal customer since [Year], but due to [briefly explain your hardship – loss of employment, medical emergency, etc.], I am currently experiencing financial strain.
I am committed to fulfilling my financial obligations and am seeking a temporary solution that will help me navigate this challenging period. Any assistance or adjustment you can offer, such as a payment plan or temporary interest rate reduction, would be greatly appreciated.
Thank you for your understanding and support. I am eager to find a mutually beneficial solution.
Kind regards,
[Your Full Name]
________________

Template 3: Dispute of Inaccuracy on Credit Report
Subject: Dispute of Inaccurate Information on Credit Report
Dear [Credit Card Company/Lender’s Name],
I am writing to formally dispute an inaccuracy regarding my account [Your Account Number] that appears on my credit report.
Upon reviewing my credit report, I noticed [describe the inaccuracy – e.g., a late payment reported inaccurately, incorrect balance, etc.]. This information is incorrect because [provide your explanation or evidence]. Attached, you will find [mention any documents you are attaching, such as payment records, bank statements, etc.] supporting my claim.
I kindly request that you investigate this matter and correct the error as soon as possible. Accurate reporting is crucial for my credit health, and I appreciate your prompt attention to this issue.
Thank you for addressing this matter swiftly.
Sincerely,
[Your Full Name]
________________

Remember to adjust these templates to fit your specific situation and include any relevant details. It’s also essential to keep copies of all your correspondence for your records. If you don’t receive a response or the issue isn’t resolved to your satisfaction, consider following up or seeking advice from a financial counselor.
User

You
more
GPT

Fastest Credit Repair Methods
Certainly! Here are additional templates for different scenarios you might encounter in credit repair communications.
Template 4: Negotiating a Payment Plan
Subject: Request for Payment Plan Arrangement
Dear [Credit Card Company/Lender’s Name],
I am writing to discuss my current financial situation and to explore options for a manageable payment plan. My account number is [Your Account Number].
Recently, I have faced [briefly explain your financial hardship or reason for difficulty in payment, like reduced income, unexpected expenses, etc.]. This situation has made it challenging for me to meet the existing payment terms.
I am fully committed to repaying my debt and am seeking your assistance in setting up a payment plan that aligns with my current financial capabilities. I am hoping we can agree on a reduced payment amount of [Proposed Payment Amount] per month for [Proposed Duration], after which I aim to resume regular payments.
Your support in this matter would be greatly appreciated and would help me maintain a positive relationship with [Credit Card Company/Lender’s Name].
Thank you for your understanding and consideration.
Sincerely,
[Your Full Name]
________________

Template 5: Requesting a Credit Limit Increase
Subject: Request for Credit Limit Increase
Dear [Credit Card Company/Lender’s Name],
I am writing to request a review of my current credit limit on my account [Your Account Number]. I have been a customer with [Credit Card Company/Lender’s Name] since [Year] and have consistently made my payments on time.
I am requesting an increase in my credit limit for the purpose of improving my credit utilization ratio, which I understand is an important factor in my credit score. I would like to clarify that my intention is not to increase my spending, but rather to strengthen my credit profile.
I would be grateful if you could review my account for eligibility for a credit limit increase. I believe that my payment history and financial management demonstrate my reliability as a borrower.
Thank you for considering my request. I look forward to your positive response.
Sincerely,
[Your Full Name]
________________

Template 6: Follow-Up on Previous Communication
Subject: Follow-Up on [Previous Subject/Request]
Dear [Credit Card Company/Lender’s Name],
I am writing to follow up on my previous communication dated [Date of Previous Letter/Email] regarding [briefly remind them of your previous request or inquiry].
I have not yet received a response and am keen to understand the status of my request. As mentioned earlier, [reiterate the importance or urgency of your request].
Your assistance in this matter is very important to me, and I would appreciate any update you can provide. Please let me know if any further information is required from my end.
Thank you for your attention to this matter.
Sincerely,
[Your Full Name]
________________

Each of these templates can be adjusted to suit your specific needs and circumstances. Remember, clear communication, honesty about your situation, and politeness in your correspondence are key to fostering a positive and productive dialogue with your credit card company or lender.
User

You
more
GPT

Fastest Credit Repair Methods
Absolutely, here are more templates for various scenarios in credit repair and management communications.
Template 7: Requesting Removal of Late Payment Record
Subject: Request for Goodwill Adjustment of Late Payment
Dear [Credit Card Company/Lender’s Name],
I am writing to kindly request a goodwill adjustment regarding a late payment reported on my account [Your Account Number]. I have been a loyal customer since [Year] and have otherwise maintained a good payment history.
Unfortunately, due to [briefly explain the circumstances leading to the late payment, such as unexpected personal issues, billing misunderstanding, etc.], I was unable to make the payment on time. This occurrence was not typical of my usual financial responsibility.
I respectfully request that you consider removing this late payment entry from my credit report as a goodwill gesture. This adjustment would greatly assist me in improving my credit score, which is very important to me.
Thank you for understanding my situation and considering this request. I appreciate your help in this matter.
Sincerely,
[Your Full Name]
________________

Template 8: Disputing a Charge
Subject: Dispute Regarding Unauthorized/Fraudulent Charge on Account
Dear [Credit Card Company/Lender’s Name],
I am writing to dispute an unauthorized charge that appeared on my account [Your Account Number]. On [Date], a charge of [Amount] was made at [Merchant Name], which I did not authorize.
I have already taken steps to secure my account, including [mention any actions you’ve taken, like changing passwords or reporting the card as lost/stolen]. I request that this charge be removed from my account, as it is fraudulent and affects my financial standing and credit score.
Please investigate this matter promptly and confirm once it has been resolved. I am available for any additional information you may need for this process.
Thank you for your prompt attention to this urgent matter.
Sincerely,
[Your Full Name]
________________

Template 9: Inquiring About Credit Reporting
Subject: Inquiry About Credit Reporting Practices
Dear [Credit Card Company/Lender’s Name],
I am writing to inquire about the credit reporting practices for my account [Your Account Number]. As I am currently focused on improving my credit score, it is important for me to understand how my account activities are reported to the credit bureaus.
Could you please confirm:
* How frequently you report to the credit bureaus?
* Whether all payments and balances are reported?
* If there is any delay in reporting or any circumstances under which reporting might not occur?
This information will help me better manage my account and make informed decisions to enhance my credit profile.
Thank you for your assistance and the information you provide.
Sincerely,
[Your Full Name]
________________

When using these templates, personalize them with your specific account details and situation. Remember, maintaining a professional tone and being clear about your requests can help in facilitating a positive response from your credit card company or lender. Keep copies of all correspondence for your records, and if needed, don’t hesitate to follow up or seek professional advice.

www.CanadaStartups.org

SUMMARY

IS ENTREPRENEURSHIP FOR YOU?
Starting your own business can be an exciting and lucrative experience. It not only offers the advantage of being your own boss and setting your own hours, but you will be engaged in doing something that you love. However, becoming a business owner isn’t as easy as it sounds. And to be sure, becoming a lucrative business owner isn’t all glamorous. In reality, successful entrepreneurs put in nearly twice the hours during the initial stages of a business’ start-up as a full time employee working for somebody else.
In business, there are no guarantees. It’s all about careful planning, assessing risks, and troubleshooting scenarios which may hinder the viability and success of your new venture.
It is important to start by evaluating your
strengths and weaknesses as an owner or manager of your small business. You must carefully consider all factors. Let’s consider this question first, “Can you handle it?”
So, can you handle it?
Anybody can just start a business- but how will you be successful? Do you have what it takes to succeed
and keep on succeeding week after week, year after year? Consider whether you have the
characteristics and skills commonly associated with successful entrepreneurs and independent business owners.
Are you a risk taker?
There are no certainties when it comes to business ownership. Every move you make can be a gamble. You, as a business owner must be comfortable taking risks for the sake of reward.

Are you a decision-maker?
Not having to report to a boss (or higher up), means that you are the boss. Great! But remember that you are the one who has to make all of the decisions, ranging from which printer paper to buy to the pivotal decisions such as; vendor selection, marketing strategies, and budget management, all of which will contribute to the ultimate success or failure of your business.

Are you sales driven?
Selling doesn’t mean just getting on the phone and calling potential customers. Selling requires an effective use of your skills of persuasion. The gifts of gab as it were. Are you able to take your great idea and make others feel that your products, services or overall business model is great as well? Remember, you will have to persuade your customers, employees and potential investors to get on board with the vision you have for your business.

Are you a great planner?
When it comes to business startups, planning is a key stage in launching a successful business. Planning is actually where most business owners fail. Over planning, not planning enough or missing key opportunities can all have a serious effect on the initial startup of your business. Good planning…great planning involves exhaustive research, dedication, hard work and an active desire to do and to succeed.
You might be a great decision maker who welcomes risks and takes them head-on. You may be a decisive and concise planner. And you may be a persuasive salesperson selling bags of ice to a penguin living in the Antarctic. But even with all these skills and a plan that is destined to succeed, other factors will come into play determining whether you have what it takes to become an entrepreneur. Keep in mind that to be a successful entrepreneur, you must be a self-starter, manage a variety of stakeholders and personalities, and have the physical, emotional and financial stamina to run a business.
Still unsure if becoming an entrepreneur is right for you? Try the Entrepreneur Self-Assessment Test.

WHY CONSIDER ENTREPRENEURSHIP?
Now that you have taken time to determine if becoming an entrepreneur is right for you and you’ve taken the Entrepreneur Self-Assessment Test, you have a better idea of what it takes to get you on your way to entrepreneurism.
But why consider becoming an entrepreneur?

First off, did you know that there are approximately 2.7 million Canadians who are self-employed? So what exactly is so enticing about being an entrepreneur, self-employed or being your own boss? Is it any easier than working for somebody else?
Becoming a successful entrepreneur requires a lot of effort on your behalf. This includes extensive planning, innovation and sometimes serious risk-taking. It is a lot of work, most of the time much more than a typical 35 to 40 hour work week most people are accustomed to. The difference is that your efforts pay off much greater if you are successful at being your own boss.
What are the benefits of becoming an entrepreneur?

Think of it this way: You can work for somebody else and help that person or organization achieve their dreams of success, or you can take their approach and become an entrepreneur and achieve success for yourself. But how?

Take your idea, and put it to work for yourself
At one point or another, you’ve thought to yourself about starting a business. Whether it was a silly idea shared amongst friends, or a serious idea you wanted to keep to yourself – now is the time to start.
Becoming an entrepreneur with your own unique idea can provide a lifestyle of freedom and independence. As an entrepreneur, the time and efforts you expend making this dream into a reality will have much more meaning than sitting at your nine to five desk job, waiting for the work day to pass by.

Decide on the type of business that’s right for you
We often hear, find what you are good at, do what you love, the rest will fall in place. Your business idea should compliment your skills, interests, and experience. Before skipping over this step too quickly, pause for a minute. Be sure that you want to do business for the right reason. If you can only see dollar signs, maybe the idea isn’t ready yet. Not that you don’t want to be successful or profit from your ideas, but you also want to be interested in what you are doing, and love doing it, that day, that month, that year and even five years from now.

If for any reason your business gets stuck in a situation, you need to have the desire to get the business
moving again, and it may be a little tough if it
doesn’t interest you. You need to have passion for your idea to continuously drive forward.
A perfect example of this is a person who loves cats and dogs. They focus their entire lives on cats and dogs but then decide to start a business with an innovative product for domestic birds. It may be a great product, a winning business idea, but that person’s true passion is cats and dogs. How long will their commitment to this venture last?

Start making the right decisions
One of the most difficult undertakings is decision making. No matter how major or minor, you have to make the right choices for the sake of your business.
Starting your own business is risky. But, with your drive, commitment, and an idea that truly interests you, you will be able to move forward and make the right decisions – or at least learn quickly from the
bad ones. Believing in what you are doing, and basing your day to day decisions on your past
experiences and your knowledge can help aim the business towards success. Just keep in mind your own limits and abilities, and don’t be afraid to stop and ask for help from others who may be able to point you in the right direction.

Location, location, location
As your own boss and depending on the business you choose – you can determine the location best suited to meet your business needs. This can mean working from or near your home, settling into a bricks and mortar site, or travelling to different cities or countries. While you have a lot of flexibility in this decision, keep in mind that location is sometimes the key to the success of your business. If it is a store front operation, think of who your customers will be. If it is an office building, think about when you have to hire employees and where you will find them. Will they have far to travel? Are there commuting considerations such as transit accessibility and available parking? Every decision you make has an impact on your business. Be sure that impact has a positive result.

Collecting your paycheck
One of the main reasons people become independent business owners is the potential to earn a higher income. Most of the time, the money doesn’t instantly start rolling in unless you have a blue chip idea like Facebook, Twitter or YouTube. You sometimes may have to work with a limited income, spending countless hours working hard to obtain your first dollar. However, if your business is successful after

following your plan, your money-making potential may far exceed what you would earn working for somebody else.

Working less and making more
Even though you are your own boss, it isn’t as glamorous as it seems. Well not in the startup stages at least – unless you are really lucky. Most entrepreneurs work 40 plus hours in order to turn a profit. But in reality, you should not see it as work if the idea is one that strongly interests you. Once the business is profitable and its operation organized, you will have staff in place managing the day to day demands of your business – you can then step back and relax a little.

Be involved and do what you love
When you work for somebody else, you are usually sitting in an office getting your ideas and work assignments from a supervisor, manager or director – you are simply following orders. Well, as a business owner – those orders are yours…or your customers. The overwhelming benefit of being your own boss is that you are fully involved in everything. You have the final say and what you say, goes.
But remember, since you are the only one in charge-the sole supervisor, manager, and director-all of the good and the all the bad falls in your lap. In the beginning stages, when you are starting up, you need to invest fully in your business- not just financially, but physically and mentally as well. This may be a challenge, but ultimately worth it if you plan properly.

So why consider becoming an entrepreneur?
Isn’t it obvious? What you put into your business determines what you will get out of it. The amount of work you do to bolster your business will lead to success down the road. The harder you work, the greater likelihood that your business will thrive. The major draws of entrepreneurship are profit potential, the ability to set your own hours while providing for the future. As an entrepreneur your potential to earn is unlimited, your time is a valuable commodity, and you can take an idea and build up a business which you can pass along one day. Think of it this way, if you follow the business startup properly and become successful, your great idea pays off not just in the present but also the future.
Now that you know entrepreneurship is right for you, the perks involved and the rationale behind independent business ownership, your next step is to review the small business survival guide.
Learn from the experts what it really takes to survive in business.

SMALL BUSINESS SURVIVAL GUIDE

You’ve completed the Small Business Self-Assessment Test. You now know that being an entrepreneur is the right move for you. Your next step is to determine your chances of survival in business.
Starting a new small business is not for everybody. Many potential entrepreneurs may be discouraged by the effort required to create a business. Many may shy away because of the physical, mental and financial risks one has to take. However, those who do go forward are in for one heck of a ride – hopefully an enjoyable one at that. .
In Canada, as of 2013 there were nearly 1.2 million small businesses. More than 5.1 million of Canadians are employed by small business owners. It may seem like a massive number. It is. Yet, only 51% of new businesses survive past the 5th year. So in actuality, this daunting figure can be cut in half by the 5th year.
Your chances of success are high. 85% of small businesses start-ups will survive their first year. By having a clear plan, the right strategy, and focus on your vision you can solidify a path for success at the early stages of your business. Now ask yourself this, “Do I believe this business can hit that 85% first year survival rate? Can I see this venture continuing to thrive so that I am among 51% survival rate by year five?” If the answer is yes, you have some hard work ahead of you.
Remember, regardless of the industry you enter, the type or scale of business you attempt – the right strategies will assist in your survival in the Canadian marketplace. You need to educate yourself as to what it really takes for your small business to succeed.
There are two ways to look at survival strategies in the early stages of your business. Both approaches work-how you elect to move forward is dependent on the type of person you are. Let’s consider these methods now. You may then select which best represents your entrepreneurial style.

The first survival method is:

FULLY EMBRACE WHAT YOU WANT TO
DO
Some of the most successful entrepreneurs, when asked the secret to their success, all agree that they love what they do, they are pursuing a lifelong passion. As mentioned earlier, one of the crucial steps in knowing whether you have what it takes to become an entrepreneur is a desire to do what you love – something that really appeals to you. It is that spark that will drive you forward, and work won’t j st be work, it will also be “fun”.

PUT IN THE LONG
HOURS
Fantastic! You are an entrepreneur. But don’t take the title too lightly. In fact, in the initial stages of your business, you and whatever support staff you can afford will have to give it your all in order to make progress in your venture. You get out of your business exactly what you invest into it.

SET ACHIEVABLE
GOALS
As with any entrepreneur, you aim to succeed – but in reality becoming a millionaire isn’t going to happen overnight. ou have to set goals and plan ahead. One way to succeed is to set specific and realistic goals. This way, you achieve what you planned for, you’re motivated by reaching these landmarks, and you’re invigorated to keep driving forward towards that “big picture”.

TAKE INITIATIVE AND
JUST DO IT
Spending too much time in the planning stages may stall the momentum of your business. This may seem like a contradiction, but to dwell in the details instead of executing your plan can be very damaging to your business. So take a breath and take a leap. Give it a shot – follow your instincts.

MAINTAIN A WORK/LIFE BALANCE
Burning the midnight oil when starting a business is a must. But be sure to know the difference between work and home. If you are dedicated to your business 24/7, great – most successful entrepreneurs are as well – but in order to survive past that 5th year you n ed to maintain a balanced and healthy lifestyle. If your home life suffers due to your work, you will eventually feel the effects on your usiness as well.

KNOW WHEN TO TAKE
A BREAK
Over thinking, over planning and over doing can be more damaging to your business than you think. It is crucial to have a sit down meeting, an out of office lunch or to take the day off and efresh and reset yourself and your mind. It will positively impact yo r overall performance.

This first survival method is a great way to see the big picture and to aim towards achieving your lifelong dream of being your own boss. Is it the approach best suited for you? Perhaps. But let’s take a look at the second survival method to determine which is more relevant for you and your unique business.
The second survival method is:

HAVE A SOLID BUSINESS
PLAN
Your business plan is your blueprint for success. Having a comprehensive business plan will arm your venture with a clear direction. It will contain answers to your aily questions and guide your decision making while you are in the start-up stages. It will also help you with the second step of this survival method.

SECURE FUNDING, OR ACCESS TO FUNDING
In order to start-up your business you mus have some sort of capital to invest. This capital may come from your personal assets, or life savings. It may come from family, friends, or your bank in the form of a grant or a loan. But regardless of the s urce– you need to have funding to get started, to move along, and to succeed. Having a proper business plan will certainly help you obtain funding from banks, private investors, or the govern ent of Canada.

FIND THE BEST EMPLOYEES TO SUPPORT
YOUR BUSINESS
If you’ve ever worked for somebody else, ou’ve either overheard or said these words yourself, “this place would fall apart without me”. Sadly, sometimes this is true. It is the employees you are responsible for hiring and training to know your busine s who may end up making it better. That’s the reason you want them there, and the reason you hire specifically those individuals. Be sure to surround yourself with the best team to succeed in your business.

LISTEN TO YOUR CUSTOMERS
Who cares about your business if your customers don’t? As a small business owner, you may not have a boss to report to – however it is wise to treat your customers as were your boss. In reality, you really work for them. If your customers are dissatisfied, you are doing something wrong. Be sure to listen to your customers, and give them what they want.

THINK LOCALLY
This point really depends on your business model. If you are opening a pizza shop, you most likely want to prom te in your neighborhood, city or surrounding area. However, if you are starting an ecommerce website you will want to think globally. etermining where your customers are will ultimately assist you in reaching them.

We’ve now reviewed both survival methods. Each can apply to all businesses. But depending on your personality and your business style, you may wish to follow one over the other. Our recommendation is to follow both, as while unique in their own ways, all of the tactics mentioned above can be combined into a deluxe survival plan for your small business.

What are your odds of success of surviving in business?
When you start out in your own business, if you don’t have a partner or employees, most of the work falls on your plate. You are performing various roles, wearing all of the “different hats”. You are the boss, the manager, the front line worker, the marketing director, the sales person, and the accountant. You may have the best idea and top notch managerial skills, but how are you at handling the day to day operations, learning how to market your idea, or generating sales over the phone?
It is important to know your own strengths and weaknesses. If you are not qualified to manage a business, this can lead to business failure. Know your weaknesses and work towards improving in those areas. A simple course in business management prior to your business’ start-up can propel you in the right direction. When it comes to business, do not be afraid to reach out for help. Assistance is available, provided locally and by your government to help small business owners and entrepreneurs like yourself. Network with others, consult with family and friends – ask for advice and get others’ expertise to ensure your personal success.
Simply being interested or excited about what you are doing will increase your odds of success and drive you forward. The other crucial step is having a business plan. Often companies fail because they start-up without a blueprint for their business. They neglect to plan ahead and half way through their launch they have to stop and say, “What do we do next. Where do we go from here?”
Sometimes having all that it takes isn’t enough. It is highly recommended you conduct your own research and market analysis before getting your idea off the ground. Why? Consider this scenario. Let’s say that you and your business partner are great at fixing electronics and small household appliances. Your business is focused on this skilled trade – this is what interests you, and it’s what both of you know. But, in a rapidly evolving market of technology, how do you plan on surviving and what makes your services stand out? Your plan to fix a toaster for $20 dollars when a new toaster can be purchased for $20 dollars defeats the purpose of your business. You should always conduct research to identify opportunities in the market. Determine where your services are needed – and what you need to do differently to be successful. Let the market tell you if you are to succeed or not.

Okay, okay…give me some survival tips
You want advice from other successful business owners. You want to know what helped them to succeed.

We’ve got just the tips-some key business pointers for you:
Create a good business and marketing plan including market research and an opportunity analysis
Get advice from a lawyer to ensure you are on the right path
Understand your finances and cash flow
Keep track of everything in your business
Work with your employees
Get the talent you need to run your business properly (hire, hire, hire)
Plan your business from start to finish
Understand your market and have a plan for introduction
Have a unique offering
Keep a cash reserve for when/if things go south, or potential income downturns
If using these helpful tips, you follow the new business survival method, and at the start-up stage you seem to have no luck – you must have a bailout plan. Do you continue trying? Do you give up and say, “I surrender?” Do you invest more money at the risk of losing more money? This really depends on your situation and the type of challenges you’re up against.
Here are 7 strategies to consider if all goes south and you aren’t ready to give up:
Reinvent your business: Making a small change in your product/service could have a big impact on the success of your business and turn things around
Get online: Depending on the type of business, sometimes having online presence is exactly what you need – put together a website or engage in social media
Get mobile friendly: This may seem excessive, but a large percentage of your potential customers use smart phones. Most web searches happen via Google from our smart phones. Is your social profile ready, or is your website mobile friendly?
Get in touch with competitors, or past customers: If your competitors are successful, learn from them. What are they doing right, versus what you are doing wrong? Let your customers tell you as well.
Expand your product/service line: Sometimes what you have just isn’t enough. Giving options to customers can sometimes get you moving.
Work your contacts: Your friends and family may know someone with a need for what you are offering. Start with that, and join networking groups to get out there more.
Prioritize and act: Perhaps the reason you aren’t succeeding yet is because you have too much or too little going on? Simply prioritizing and acting on items can help you obtain achievable goals.

BUYING A BUSINESS OR STARTING OWN
YOUR

The idea of leaving your safe, secure, comfortable job to be your own boss and to work for yourself is a scary one. Some people are born to be business owners. Others adapt and grow into it. While some are simply not cut out for it. Those who take on the challenge and want to achieve the potential financial freedom of being a small business owner have one of the most difficult decisions to make right of the bat.
Do you buy an existing business, or franchise – or do you start from scratch with your own idea?
Starting a small business from scratch can be very overwhelming for a first time entrepreneur. However, if you have a great idea and the stamina it takes to build a business from the ground up, then starting your own business is the way to go. On the other hand, if you want to hit the ground running, avoid some of the common pit-falls of business ownership, and skip over the guess work, then buying an existing business or a proven franchise model is the better choice for you.

Pros and cons of starting your own business
Take a look at both the pros and cons of starting your own business and decide for yourself if starting your own business is the right fit for you.

THE PROS OF STARTING YO R OWN BUSINESS INCLUDE:
THE CONS OF STARTING YOUR OWN BUSINESS INCLUDE:

The ultimate freedom of managing, designing and operating y ur business as you see fit
You are not bound by any rules set by a higher up or parent company
You are starting fresh, meaning you don’t have to meet expectations based on historical data
You have the opportunity to build a new niche, new market and possibly a well- known brand
Starting your own is often less expensive than buying a pre-existing business or franchise You do have to start from scratch. You have to bring your idea to life
There is no guarante of it ever taking off and working
The rate of failure for starting a small business is high
It can be difficult to obtain financing to fund your venture without a proven track record
Everything is dependent on you

Starting your own business has benefits but also drawbacks. However, those who see advantages over disadvantages and follow a well formulated plan end up succeeding, reaping the rewards of being their own boss.

Pros and cons of buying an existing business or franchise
Buying an existing small business or a reputable franchise is often less of a gamble. Why is this? Well, an existing business offered for sale will have a financial history for you to go back and review. Not only that, but you are also generating revenue the moment you start, since the business is up and running.
A franchise model is similar. It may take some time to set up your location. But franchising follows a reputable formula offered for a cost with all-inclusive service to make it function uniformly within the franchise group. With a franchise you will be generating revenue the moment you open for business.
Take a look at the pros and cons of buying a business or franchise and decide for yourself whether it is the right fit for you.

THE PROS OF BUYING AN EX STING BUSINESS OR FRANCHISE INCLUDE:
THE CONS OF BUYING N EXISTING BUSINESS OR FRANCHISE INCLUDE:

The pre-existing business or franchise has a history. Much of the work as already been done for you.
You have a chance to build upon existing customer relationships and grow the brand
There is a developed business process and acquisition of existing assets
You will start generating income almost instantly
It will be easier to secure fi ancing due to the history and pre-existin credit on the business name
Often, a business or franchise model is proven effective translating to lower risk The initial investment is much greater than starting your own bu iness
The previous owner’s style of doing business may not match yours
You may be unfamili r with the business due to lack of knowledge or experience
As a franchisee, the parent corporation has authority over you
You may be limited as to how the business may be altered or improved from your perspective

Buying an existing business or franchise has its own benefits and drawbacks. But on the whole, you are buying into something that is existing and profitable. If your goal is to earn an income as soon as possible, this is the option for you. If you are more inclined to start an idea from the ground up, making it your own and building it to fit your style, starting your very own small business is the right choice for you.

Either way, research into both is necessary to deliver you to the correct strategy. If you decide on starting from scratch, your next step is to develop your idea. If you are proceeding with the idea of buying an existing business, be sure to review the idea, the business plan, and create your own business plan for future growth.

DEVELOPING YOUR IDEA
Once you have decided to become an entrepreneur and you want to start from scratch, you must take some time to develop your idea. One of the advantages of being an independent business owner is that you actually have the option of doing something that you love and that genuinely interests you.
Keep in mind that something that interests you doesn’t always equal instant success. The key to success is developing your idea into a profitable business through research.
Before you start your business, you must conduct research in order to turn your idea into a reality. It is important to gather as much information as possible about the industry, the demand for your product, the needs for your service, the state of the market itself, your potential customer base, your potential competitors, and any other relevant statistics.
With all of this information collected, you will be armed with the knowledge necessary to evaluate the likelihood of success turning your idea into a viable business. Consider some of these points when researching and developing your small business idea:

Is your idea unique?
Are you reinventing the wheel so to speak, or are you starting from scratch? This is an important question to answer before you start out in business.
There are a few different options when it comes to developing your idea.
The first option is to take an existing product or service and add your own twist making it unique and specialized. A good example of this would be a child daycare center offering a live video/audio feed to parents through an app or website so they may check on their little ones throughout the day. Child care centers are a necessity but part of a massive industry. If you think about it, every Canadian city will have thousands of options for working parents. By offering parents piece of mind through online access to their children, you are standing out from the competition adding extra value to your service in a unique and marketable way.
The second option is to take an existing product or service, copy it but apply your own unique branding. How does this differ from the first? Well, let’s use the chewing gum industry as an example.
You have a multitude of different varieties of chewing gum at every cash register in every store around Canada. They are all similar in certain respects- white, minty, packaged the same, same price range. But new brands of chewing gum are constantly hitting the shelves and capturing a small percentage of the market.
Why is that you ask? Well, the market for chewing gum and confections is huge. This means that there is enough market share for nearly everyone. The only difference is that here you can use marketing and promotional tactics to make your gum stand out from the rest. Response to these tactics is how the consumer opts for one brand over the other.

The third option is to start from scratch and come up with a brand new idea that nobody has ever thought of before. This type of idea usually ends up being the most lucrative, but at the same time difficult to execute.
Think about YouTube before it launched. No service existed like it on a similar scale or even close to it. However, the company that started YouTube had a unique idea, built it up from scratch and today it’s worth billions of dollars and is used all over the world. At the same time, there have been countless ideas built from scratch that never catch on, failing miserably.
The key is to have a unique idea. It doesn’t have to be original, but it needs to be supported by research.

Will anybody buy what you are selling?
You can have the idea of a lifetime – an idea so great that everybody in your family loves it and encourages you to move forward with it. But a great idea that a few people love doesn’t always mean that everyone will receptive to it, or that you can turn it into a profitable and successful business.
So how do you figure out if somebody will be buying what you are trying to sell?
First, you will need to conduct the appropriate research and see if a similar idea, product or service already exists on the market. Think about the following questions. Who is your audience? Will it be mostly men, women, children or appealing to all consumers? Is the product or service you intend to offering a necessity or a luxury item? Will you sell to consumers or to businesses? Would you yourself buy it and why?
Spend some time researching and answering these questions. When you do so, you will gain insight into your target audience and what your chances of success with a given product or service will be.
Once you know who you are going to sell to, you will want to find out if anybody is actually going to buy what you are selling. How to do gauge this? Sometimes it can be simple as speaking to people, conducting surveys, passing out samples, or researching your competition and seeing how successful they are and why?
If the product or service you are offering doesn’t seem to be working out, you are still in the early stages where you can adjust and modify to make improvements.
Just keep in mind that research is imperative. The more you know, the better you can do business.

Who are your customers?
Earlier, we mentioned researching your audience. Before you actually move forward with your idea and start building your business plan, it’s very important to figure out in detail who you are selling to. A large number of businesses fail due to the lack of research into their target customers – being too broad or too specific.

When creating your customer profile, it is recommended to define the customer by their demographic characteristics such as:
Their age-not just children, adult, and senior – but by age range as well
Sex- male or female
Marital status- married, single, or divorced
Location- often the key to a physical store-front operation
Family size
Income- how much money is available to be spent
Education level
Occupation- will determine annual and expendable income
Interests- contributes to the purchasing profile
Culture, ethnicity, and religion
Each of these characteristics play a major part in whether your products and services will be considered. Be sure to make it a point to research each point in depth.
Let’s take a quick look at one example of how demographic characteristics may play an important role in where you start your business – and how researching is key to success.
Consider that you are starting a business, opening a high end boutique selling luxury jewelry pieces. Your target audience is both male and female, single, married or divorced and ranging in age from 25 to 65 with an approximate family income of more than 100k. Great, you have identified your ideal customer. All the research you’ve done points to the above and you say to yourself, I’ve got it, I don’t need to research further. Now, you find a location for your boutique, what seems to be a perfect storefront- large showroom, affordable rent, lots of foot traffic. It seems perfect! However, the lack of research into the location, average income, education level, and occupation for the area has kicked in.
Your boutique that caters to people who make over $100k per year is now located in an area with high levels of unemployment, limited income, and a rising crime rate.
Your business is destined to fail due to a lack of research.
Once you’ve completed your customer profile and you feel comfortable that you know who your audience is, you must research to find out what their needs and wants are. Ask the following questions to get a clear picture:
What are some of the challenges your customers face which your product or service could help them resolve?
What are the customers’ needs and expectations regarding your products and services?
What do your customers want?
What do your customers spend their money on?
Where do your customers shop?
How do your customers make their spending decisions?

These are just a few questions you can use towards developing a better customer profile, ensuring your business succeeds with a quality product or service.

What is your plan for producing your product or service?
Having an idea is great, but manufacturing the product or producing the service is another challenging task.
Is it even possible?
When the time comes for you to turn your idea into a reality and a usable product or service, you must decide on the development process. Here you have a few options.
Your first option is to take it all in-house and do it yourself. This means, develop the product, the packaging, and the distribution. Often this is a very expensive option. But at the time, if you are starting out solo, it may be the only option.
This option is a very complex one to take on. Think about it, you are starting out in business and have hundreds of things to organize. Adding this kind of task on top could slow you down in other aspects of your business. Plus, most business owners are not skilled at product development and distribution – instead they want to run the business with the products already supplied.
Take a look at Amazon. Amazon sells millions of products every day all over the world – and simply
ships the items. Imagine that Amazon had to also produce the products they sell and ship. What a huge undertaking!
Your second option is to fragment the process and hire either one or multiple companies to take care of the product development, manufacturing and distribution for you. It may cost you, and you may need to sign some paper work, but in the long run, it’s one less thing to worry about. Think of it this way, those manufacturers are great at what they do. Why do you need to learn manufacturing techniques to run a business that has nothing to with that?
On the other hand, you may be a manufacturer and that may be your business. This means that you may want to mass produce products and sell them to retailers who will distribute them for you. Maybe you aren’t in business to sell one item at a time, but instead want to license your idea to others.
If that is the case, you may consider learning more about licensing your intellectual property and collecting royalties. Licensing agreements vary from deal to deal, product to product, idea to idea. Your best bet is to research similar ideas and gather information on moving forward. Our recommendation is

to speak to a business lawyer and consider hiring an expert to help you get the most out of your licensing agreements.

What is your marketing and promotion plan?
The third most important step after researching and manufacturing your idea is knowing how you plan on promoting your product or service to your target audience.
Your idea is not very useful without customers willing to buy it. How do you plan on having your customers find the product or service you are offering? Consider building a full blown marketing plan. Take a look at our suggestions in the business plan and marketing plan section of the guide for additional advice.
For now, some ideas which may help you promote your products and services to your target audience may include:
Having a dedicated website for your company, brand, product, or service
Being active online and on social media websites
Participating in events and trade shows where your audience is visible
Placing advertisements in newspapers, magazines, radio and tv, online, and on social media sites
Again, these are just a few basic suggestions for getting your business’ products and services promoted. To get a broader idea, refer to the promoting and advertising your business section of our guide.

What else do you need to know?
Before you move on with your business idea, you may want to double check to see if there are any
business regulations and/or restrictions which may apply to your idea. Contacting your local
government or small business office may be a good idea to learn about obtaining permits, licenses, and to confirm you’ve abided by all of the applicable regulations.
We also recommend you take a look at the business advisors section in order to obtain external help for ensuring your business is on the right path.
Once you’ve completed your research and are ready to move forward to the actual business planning stage, take a minute to consider the type of business you plan on starting. This doesn’t mean what idea you plan on turning into a business, but the actual legal form of business you plan on venturing into.
Your options when starting a small business in Canada include; starting out in sole proprietorship, a partnership, as a corporation, or perhaps you are considering a non-profit organization? Read on to understand the differences between each type of business and for more information on registering your small business in Canada.

TYPE OF BUSINESS
As a startup business owner you understand the importance of planning your business correctly from the get-go. It is also very important that you let the government know your plans, especially when choosing the type of business you are developing.
You may have had to register your business with several different levels of government for various reasons. It is very important to know which form of business you are registering. Let’s take some time right now to look at the 3 main categories of business in Canada to help you determine how you should register your new venture.
The structure you wish to form for your small business will depend on whether you are planning on running it by yourself, with a partner, or with associates. They include:
Sole Proprietorships
Partnerships
Corporations
So what is each type of business exactly? What are their advantages and disadvantages? Read on to better understand which form of business registration is right for your small business.

Sole proprietorship
When registering your small business as a sole proprietorship, you are basically saying that you are and will be the owner of this business. With sole proprietorship, you are fully responsible for all obligations of your business – all the profits are yours to keep, but you are also responsible for any debt you incur. Keep in mind that a creditor can make a claim against your personal or business assets to pay off any debt.
Some advantages/ disadvantages of registering your small business as a sole proprietorship are:

ADVANTAGES DISADVANTAGES

Creation of a sole propriet rship is easy and inexpensive
Low start-up costs. Minimal funding is required to get the ball rolling
Full control of decision ma ing
Fewer regulations
Certain tax advantages
All profits go directly to you
Unlimited liability – your personal assets could be used to pay off debts
Business income is ta able at your personal rate
Lack of continuity for your business in your absence
Difficulty obtaining funding

If you’re not confident you can do it on your own, consider registering your business as a partnership.

Partnerships
A partnership is the ideal way to register your small business if you are not the only owner. You have business partners but don’t want to incorporate. With a partnership, your financial resources are combined and put towards the business. Terms can be established to protect you and your business. Important details like the share of profits would be negotiated during the registration stages.
There is one type of business partnership registration, but with a business lawyer you can change the specific details of the registration easily. For example, if you want to participate in the funding portion of the business but want to decline control or any legal liabilities, you can work that into an agreement with your partners and business lawyers.
When establishing a partnership, a partnership agreement is crucial– and should outline how you are protecting your interests, provide a clear breakdown of profit sharing, and under what circumstances would the partnership be dissolved.
Some advantages/ disadvantages of a partnership business structure may include:

ADVANTAGES DISADVANTAGES

Two heads are better than one. It ‘s easy to begin, especially if you already have a partner in mind
Startup costs are shared qually amongst all partners
Equal share in the management, profits and assets
Certain tax advantages There is no difference between you and your business. You and your partners are personally responsible for everything
Unlimited liability – your personal assets could be used to pay off debts
Difficulty in finding suitable partners
Possibility of conflict in decision-making between partners
You are personally and financially responsible for all decisions, including those of your partners
If the degree of liability discourages you when deciding on the type of business to register, consider registering your small business as a corporation.

Corporations
Registering a corporation can be done on either a federal or provincial/territorial level. When you decide to incorporate your small business, you are legally separating yourself from the business. The business itself becomes a legal entity. You become a shareholder and shareholders are not personally liable for any debts or obligations.

When deciding to incorporate your business, it is highly recommended to obtain legal advice.
Some advantages/ disadvantages of registering your small business as a corporation include:

ADVANTAGES DISADVANTAGES

Limited liability
Ownership is transferable through company shares
Contentious existence
Separate legal entity
Easier to obtain funding
Possible tax advantages Corporations are strictly regulated by the government
More expensive to incorporate versus partnership or sole proprietorship
Extensive corporate records are required
Possible conflicts b tween shareholders and directors
Whichever business registration type appeals the most to you and your situation, we always recommend conducting additional research. If you are sure that you have what you need – go ahead and register your business. Be sure to refer to the Business Registration Links section of our guide to find appropriate places to register your business for your province or territory.

Naming your small business
Once you’ve figured out how to register your business, you get to be creative and come up with a name for your company. Choose your business’ name carefully. It may seem like a small detail but this step can make or break a business.
What’s in a name? Quite a bit actually! The right name for your small business can be a great marketing tool. Your name can help your customers understand what your business offers and which market you are targeting. Having the wrong name can confuse and divert potential customers.
A few things to consider when naming your business:
Does your business name describe the product or service you are offering?
Does your name reflect the values of your business?
Is the name you are opting for a distinctive one?
Will your customers be able to identify and remember your name?
Are you legally permitted to use the selected name?
These are just a few questions to ask yourself before making that final choice. Be sure not to take the naming of your business too lightly. It can literally make or break your business. Put some time into naming your business and conduct some research before you do.

Permits, licenses and regulations
One of the worst things that can happen to a small business in the start-up stage is running into obstacles with local and federal governments. Sometimes it can be simple details you’ve missed in the initial stages. Other times it can be licenses you legally need in order to operate.
Be sure to check and see which permits and licenses you may need, and if there any regulations you must adhere to before starting your business.
In order to do business in Canada, and to comply with any government regulations, you may need a number of different licenses and permits from various levels of government. Not all businesses require licenses and permits but it is paramount to the success of your business that you double-check.
Refer to the Business Registration Links Page in this guide to determine if you fall into this category.

Employees, payroll and taxes
A big component of building up a successful business is hiring employees, paying them and paying taxes.
Knowing your obligations and opportunities when it comes to hiring personnel is a must. From
recruitment to payroll to tax returns, it is necessary to familiarize yourself with current labour laws and labour market conditions.
When you decide to hire an employee to work for your small business, there are certain government regulations which must be followed throughout the hiring and employment stages.
It’s important to identify the requirements of the positions you want to fill. You need to implement recruitment and selection policies that are fair and inclusive. Your goal is to hire the most qualified people while achieving equality in the workplace.
Here are a few pointers that will assist in your search for great employees:
Define the job requirements for the position
Advertise the job
Interview qualified candidates
Perform background checks and call employment references
Select the most suitable candidate
Provide training and orientation for each new employee
Start a file for each employee
The information you keep on your employees should include; personal and contact information, education, work history, salary, benefits, skills and job classifications.

As an employer, you are also responsible for deducting Canada Pension Plan (CPP) contributions from your employees. In addition to CPP, you are required to deduct Employment Insurance (EI) premiums and income tax reporting this data to the Canada Revenue Agency.
While processing payroll you will also need to manage your business’ taxes. Whether you have an accountant that handles this or you do them yourself, it’s important to understand the best practices and know what taxation applies to your type of business.
You should be able at any time to answer the following questions; What do you owe and when? How do you keep accurate records of your business finances? How do you make and report payments? Do you qualify for tax credits or any money back from the government?
To get a better idea of taxes and important information please refer to the Federal Tax Information page as well as the Provincial and Territorial Tax Information page by the government of Canada.

Business registration links
When registering your business, be sure to obtain a Business Number (BN) or an NEQ for those located in Quebec.

Here are two links to help you obtain your business number:
Business Number (BN)
Your Business Number is your single account number for dealing with the government regarding GST/HST, payroll, import/export, and other activities.
NEQ — Quebec Enterprise Number (Applies only to Québec)
Simplify and fast-track your dealings with the various Quebec government departments by registering with the Registraire des entreprises [Quebec enterprise registrar].

Provincial and territorial business registration
Most provincial and territorial governments require that you register your small business with them.

Here are links for you to utilize when registering your business on the provincial level.

Alberta
Corporate Registry
To conduct business in Alberta, register your cooperative, corporation, extra-provincial company, non-profit organization, society, trade name and/or partnership.
New West Partnership rade Agreement

If your business is locat
d in British Columbia, Alberta, or Saskatchewa
, this agreement can

save you time as it allo

British Columbia
BC Business Registry This website will guide
s for a seamless business registration between provinces.

ou through the steps of registering your sole proprietorship or general

partnership business in BC.
Corporate Online
Learn how to register your provincial or extra-provincial company in BC.
Community Contribution Company
Find out how this business structure allows you to pursue social goals while making a profit and providing opportunities to like-minded investors.
Name Requests Online
Submit a business or corporate name for approval by B.C. Registry Services.
New West Partnership rade Agreement

If your business is locat
d in British Columbia, Alberta, or Saskatchewa
, this agreement can

save you time as it allo s for a seamless business registration between provinces.

Manitoba
Companies Office – Business name registration and provincial incorpor tion (Manitoba)

Find out how to register your business and what you need to know abo incorporation.
t provincial

New Brunswick
Registration / Declarati n of a limited partnership (New Brunswick)
Find out about the rules, procedures and fees to form a limited partnership or register your extra-provincial limited partnership in NB.
Registration of an extra-provincial corporation (New Brunswick)
Find out about the rules, procedures and fees for registering an extra-provincial corporation in New Brunswick.
Incorporation / registration of a business
Find out about the rules, procedures and fees for registering a provincial corporation in New Brunswick.

Co-operative (Co-ops) Incorporation
Learn how to start and operate a co-operative in New Brunswick.

Newfoundland and Labrador
Registry of Companies (Newfoundland and Labrador)
In Newfoundland and Labrador, you must register with the Registry of to incorporate provincially.

ompanies if you decide

Northwest Territories
Corporate Registries — Business Corporations — Extra-Territorial Registration (Northwest Territories)
Are you currently operating a corporation outside the Northwest Territ ries and interested in
expanding your compa y into the Northwest Territories? Find out the requirements to register
your business in the Territory.
Nova Scotia
Access Nova Scotia
Find out how to register your business, obtain required permits and licenses, and get information on provincial government programs and services.
Registry of Joint Stock ompanies
Register your business r research existing corporations and partnerships.

Nunavut
Legal registries (Nunav t)
In order to do business in Nunavut, you must register with the territory, even if you live in or have a business established in another part of Canada.

Ontario
Business name registration information (Ontario)
Register your business ame online, in person or by mail.
Extra-provincial domes ic corporations operating in Ontario
If your business was incorporated federally or in another province/territory, you must inform the Ontario government you are doing business in Ontario.
Limited partnerships (Ontario)
Find out if a limited partnership is right for your business.
Collection agency licensing
Find out how to register and license your collection agency in Ontario.

Prince Edward Island
Corporate services — Business name registration
Register your business ame in Prince Edward Island to prevent other organizations from using
the same business name.
Register my company to do business in P.E.I.
Are you looking to do business in P.E.I. but are incorporated elsewhere? If so, you must register
as an extra-provincial c rporation.

Québec
Creating a non-profit corporation or organization
Learn the major steps for establishing a non-profit corporation or organization in Quebec.
Enterprise register (Qu bec)
If you operate a business in Quebec, you must register with the enterprise register and declare your organization’s legal form.
NEQ — Quebec Enterprise Number
Simplify and fast-track your dealings with the various Quebec government departments by registering with the Registraire des entreprises [Quebec enterprise registrar].
Registration of a charit ble organization
Find all the information you need to register a charity in Quebec.
Revenu Québec — Business Portal

Is your company based in Quebec? If so, learn about your fiscal obligati deductions.
Setting up a cooperative (in French only)
Do you want to create or start a cooperative? If so, learn more about th
ns including taxes and

laws, programs,

policies, and tools relat d to starting a cooperative.

Saskatchewan
Forming a co-operative in Saskatchewan
Find out how to register a co-operative in Saskatchewan- includes information on fees and required forms.
Registering a sole proprietorship or partnership in Saskatchewan
Find out how to register your business name as a sole proprietorship or partnership in Saskatchewan, including fees, forms required, and turn-around time
New West Partnership rade Agreement

If your business is locat
d in British Columbia, Alberta, or Saskatchewa
, this agreement can

save you time as it allo s for a seamless business registration between provinces.

Yukon
Business registration in the Yukon
In order to register your business in the Yukon, you will need to contact Corporate Affairs

Incorporating your small business
If you decide to incorporate your small business, you can incorporate federally or provincially. Federal incorporations allow you to do business under the same name in all of the provinces and territories but you may be required to register your business within the individual provinces/territories. Before incorporating federally you should do a NUANS Corporate name search.

Newfoundland and Labrador
Registry of Companies (Newfoundland and Labrador)
In Newfoundland and Labrador, you must register with the Registry of decide to incorporate provincially.

Northwest Territories
Corporate Registries — Co-operative Associations
Are you looking to establish and incorporate a co-operative within the

ompanies if you

orthwest Territories?

Find out the rules pertaining to venture start-up and what is needed to remain compliant with the law.
Corporate Registries — Business Corporations
Are you looking to incorporate your business? Find out how you can register to do business in the Northwest Territories.
Corporate Registries — Societies
Are you interested in starting a society or non-profit organization? Find out the benefits of incorporation and what you are required to do at the territorial and federal levels.

Nova Scotia
Business incorporation and registration
Incorporate your business provincially through the Nova Scotia Registry of Joint Stock Companies.

Nunavut
Legal registries (Nunav t)
In order to do business in Nunavut, you must register with the territory, even if you live in or have a business established in another part of Canada.

Ontario
Ontario Business Incorporation
Incorporate your Ontario business online, in person, or by mail.
Professional corporations
Find out how you can incorporate your practice in Ontario for specific regulated professions.
Making changes to your corporate information
Find out how to make changes to the information about your Ontario corporation, including its name, address and number of directors.
Reviving your corporation
You may be able to revive your Ontario corporation if it was involuntarily dissolved within the last 20 years.

Prince Edward Island
Corporate services — Business name registration
Register your business ame in Prince Edward Island to prevent other organizations
from using the same name.

Permits, licenses and regulations
Before you launch your small business, be sure to investigate whether you require certain permits or licenses.
Use the following link to check permits and licenses in your area of business.

BUSINESS PLANNING
When starting out, an important tool for building a successful and long lasting business is a professionally written business plan. A precise plan for your small business is an asset and benefits everyone involved. Regardless of whether this is your first attempt or you have been doing this for years, you need to grow your small business. A business plan is the key to growth.

Why do you need a business plan?
Think of your business plan as if it were an actual employee you have hired. You want your plan to promote and protect your interests. Your plan should speak for your business and advise you when you are making positive steps forward and alert you to risks on the horizon. Most importantly, your plan should guide you as to where you need to go next. It is your number one salesperson.
Why a sales person? Well, a
professionally written business plan
must be able to convince its readers that your small business has the potential for success. In a business plan, your enthusiasm, dedication, knowledge and confidence should be clear to the reader. When developing your business plan, remember to avoid being too technical try not to overuse terms and diagrams that may be unfamiliar to the average reader.
Keep in mind that the business plan is a road map to success. No matter the reader- a bank, funding agency,
potential investor, or a friend – you should draft the plan using plain language so that it is easily understood by all.
Depending on who you are writing the business plan for, the most effective plans are constantly evolving as your business grows. It is important to include the current status of your business, but also to show growth year over year, and to present current, past, and future goals. Highlight your achievements and any improvements that may currently be underway.
If you are starting a business, your business plan will help you:
Turn your idea into a viable small business
Obtain financing from lenders and investors
Showcase your strengths, weaknesses, opportunities, and threats

If you are managing an existing business, a business plan will help you:
Communicate your vision to your employees
Develop an accurate financial forecast
Compare your plan with actual performance
If you are growing your business, a business plan can help you:
Raise capital to expand your small business
Create a strategy to manage your growth
Take advantage of clear and visible opportunities
If you are shutting down your business, a business plan can help you:
Develop a plan to transfer ownership, sell or close your business
Establish a timeline for the transition process
Identify any financial requirements
As you can see, no matter what stage you are in, having a documented business plan can help you succeed and move forward with your venture.

The different types of business plans
Business plans only differ based on how much versus how little information is provided. Some plans are very brief -only five pages. While others can be quite extensive – covering 5 to 10 years of details and strategies.
A long term business plan isn’t always necessary for startup businesses, but it is recommended.
A business plan paves the path you need to follow to obtain and achieve your goals in order to have your business succeed. A business plan is like a mentor, somebody who guides you and tells you the next step to take. Most startup business plans only reflect the first year – especially if you are unfamiliar with business or don’t know what to expect in the first 12 months.
But thinking ahead-putting together a 5 year plan-can’t hurt, even if after the first few months that plan has to change.
Your choice of what plan is really dependent on who you are developing the plan for. Are you writing the plan for your business partners? Are you trying to attract investors? Are you hoping to obtain financing from a bank? Do you want to apply for a government grant, loan, or some other financial assistance? Is it an operational day to day plan? Is it a means to communicate the blueprint of your business to your employees?
What is the difference between these plans you ask? Well, each plan should be written to specifically address the questions, concerns, wants, and needs of the reader.

Think of it this way; if you have a technical plan which could help you train your employees on becoming more familiar with your business and operations– this isn’t the type of plan you would provide to an investor. On the other hand, if you are writing a full out business plan with your goals, ways to achieve them, the financials, and your current plan, a 5 year plan, financial forecasts..etc. – this is the type of plan you use to show to investors.
Investors aren’t necessarily concerned about your day to day operations. Their concern is that the money or time they are contributing is guaranteed to result in a positive outcome. Tell them what that is and how you plan on giving it to them.
If you are writing a business plan to obtain government financing (e.g. grants, loans or another form of assistance from the Canadian government), you have to keep a few things in mind:
Is your business plan relevant to the government agency you are applying to?
What makes your business idea unique and likely to obtain funding?
What do you need funding for? What would you do with the assistance?
Do you meet the criteria to receive government funding?
Keep in mind that the Canadian government receives thousands of funding applications each day. Although our government hands out billions of dollars each year to small business owners, you must meet strict criteria in order to apply and before you can obtain funding.
It is important to know which agency of the government has the funds you are looking for.
For example, if your work is in the agriculture industry, you most likely won’t apply to a government agency that focuses on funding retail and hospitality ventures. Be sure to research the different agencies and different types of funding programs available.
Your idea is unique. Your business plan must be unique as well. What makes your application stand out from the numerous other applications requesting funding the government may have received that day? Add a little bit of spice to your business plan to make it unique, make it stand out from your funding competitors. Do all that you can to ensure your application is picked up, reviewed, and flagged for funding.
Within your business plan it is important to demonstrate why you need the funding or assistance – explain and show how your business would thrive if boosted by obtaining some financial assistance your business. Not knowing how much you need, what you need it for, and how you plan on using it, is like walking into a business meeting unprepared. Always be prepared.
Before you submit an application for funding be sure you fit the criteria for that government agency or specific loan or grant. Each business funding program has its own set of guidelines to follow before you submit your application. Your chances of obtaining funding greatly increase if you pay strict attention to these rules and criteria.

If for example, the program you are applying to states that only males 18-25 may apply, and you are 35 with no business partner in that age range, you will not be considered. Be sure to read and understand the guidelines before starting your application.
Taking your business plan to a bank for a business loan or line of credit is quite similar to pursuing a government funding program. Your personal and business credit rating plays a major role in securing funding. Going to a bank and meeting with a business advisor is a must if you want to successfully secure financing for your small business.
Before trying to obtain financing from the banks, prepare yourself as follows:
Know how much to ask for:
The amount you are trying to borrow is one of the first things a bank’s business advisor will speak with you about. Knowing how much to ask for can often make or break the deal between you and your financial institution. Not only do you need to have the right figure, but you need to be able to explain why you need the funds, how you came to that amount, and what you plan on doing with it.

Know your personal credit score:
Your personal credit score determines how willing your bank will be to lend the amount you’re proposing. Why is personal credit score important? Well, if for any reason your business fails and you’ve borrowed money from the bank, the financial institution wants to ensure they can get their money back. They will hold you personally liable. Thus, a satisfactory personal credit score is very important. Know your credit score before you go into the bank to apply for financing.

Know what you have to offer:
Your business idea may be great, and your business plan may be flawless – but when it comes to banks lending you money for your small business venture; they have to ensure that they are protected. You must have some assets to offer in return to the bank if you fail to repay.
Personal assets like a house or a fully owned vehicle are an example of property you can leverage to obtain a higher loan. But remember, they are also on the hook in case you can’t return on your loan amount.
Aside from government and financial institutions, you may be writing a business plan for potential partners or investors to join your business or provide funding for your startup. The type of business plan you present in this case isn’t much different from the one you would provide to a government funding agency or to a financial institution.
You should still pitch your business idea to all interested parties and using your business plan, show your potential partners or investors why your business is the one they should join or invest, and what their return will be. A key here is to ask for something that you need, whether it is money, advice, or contacts – and offer a fair return on their investment that you are comfortable with.

The last type of business plan is an operational business plan. No matter if you are aiming to obtain funding, financing or assistance – a business plan always promotes good business behavior. Anybody starting a business should do a business plan regardless of their industry, idea or experience.
An operational business plan is simply what it sounds like “operational”. It is a plan that makes your business function and operate on paper. From your strengths to your weaknesses, an operational plan shows you where you are, what you need to do, and where you need to go in order to achieve your end goal. Operational plans can be split into 3 sections; strategic, tactical, and operational. Each section has its own goal.
A strategic business plan section of the operational approach is to be very broad and general as to the mission of the company, its future goals and ambitions. The tactical plan is very specific as to the actions to take to support the work towards the strategic plan goal. Lastly, the operational plan section is extremely detailed (the who, what, where, when and why), and supports the day to day actions and processes which enable the tactical plan.
Whichever plan you decide to start with, it’s important to follow the proper business plan writing guidelines. These guidelines have been outlined for you later on in the guide, so be sure to review them before starting your business plan.
Something else that may assist you in developing your business plan could be a sample business plan or a business plan template you can refer to – to gauge what you need to do for your own plan.
Sample business plans or templates can help you develop a professional document which will eventually serve as a sales or marketing tool to help you convince others of your business’ potential.
Keep in mind that it’s often recommended to hire a professional to complete a business plan for you. But before you go to a professional, drawing up your own version is one of the best ways to ensure that you provide the professional writer everything you want to include in the business plan. It may be difficult and time consuming but if you can put down the ideas of your own business, in your own words, a professional writer can then craft it into the perfect sales or marketing document you need to move your business forward.

FINANCING YOUR BUSINESS
If you are planning on starting your own small business, you will need money to get started. One of the main reasons so many new small businesses end up failing in either the initial pre-launch stage, or within the first year is due to a lack of capital investment or overspending. Therefore, before you even start up, know exactly how much money you actually need to launch, to run your small business – and to reach a profitable point.

Why is having money important to start a business?
To be frank, if you are asking yourself why money is needed to start a business – you may be on the wrong career path. You’ve likely heard the saying, “It takes money to make money!” 99.9% of the time this is true.
When starting a small business you will have many expenses, even if you are

planning a low investment isn’t
cost start-up. Capital just needed to buy

equipment, hire staff, or start marketing.
It can be used for expenses such as
business registration, filling up your gas tank to go meet suppliers, or to pay yourself a small income in order to survive until your business takes off- especially if you are unemployed.
So why is money important when starting a business? In the initial stages of a business start-up, you do in fact have to do the research, get the idea started, create a business plan, and develop the business connections you will need to be successful. These things aren’t typically free so you should get an idea of how much money you will need.
Everything in business costs money. Underestimating how much money you need could mean failure for your small business. Your first priority before starting your business should be to accurately estimate how much money it will take you to start up, launch, and operate the business. Doing so will require that you conduct additional research to get the most accurate numbers.
So whether you think you need $5,000 or $500,000 for your business, don’t make a “guestimate”. This just won’t work. You will actually need solid numbers. Accurately gauging how much money you need is crucial to success. It is better to overestimate and have money left over, rather than underestimate and run out of money before you even start.
In order to figure out how much money you need, it is recommended that you:

Start networking. Connect with as many business owners as possible.
Figure out how much it cost them to start up. If you can get somebody in the same industry as you, even better! Their estimates and experience may give you a clearer financial picture.

Contact your suppliers
You can figure out approximate operational costs by contacting your suppliers. If your business is selling a product obtained from certain suppliers, figure out how much it costs, are there minimum orders, and what the process for ordering and payment is. This way you will have a better idea of some of your start-up costs in obtaining and selling your inventory.

Contact Ministries and Business Offices
Local business centers will be able to assist you in answering some of the questions you may have. Some even have start-up information and cost estimates. If your business requires certain licenses, those costs may be shown to you here.

Check the web
The internet is your best friend when it comes to research and starting a small business. Not only will it help you research and promote your business, but it can also give you a better idea of startup costs for certain things. Whether it’s the fee to get a business plan drawn up, costs of registering your business, or how much to spend purchasing equipment and supplies, the web has the answers.
When it comes to financing your business, be sure to avoid common mistakes such as:
Neglecting to do research, or not doing enough of it
Changing the amount of money you need for your business-or withdrawing little by little.
Not calculating costs associated with growth potential into your cost equation
Overspending and over borrowing
Once you have your figure, or what you feel is close to what you need to succeed, it is important to do some calculations and ensure that you have some money left over after all of your expenses are paid. Remember that unexpected expenses may come up, and you need to have the funds to cover them in order to keep going.
Always expect the unexpected when it comes to financing your business.
Your next step is to take your business plan, implement the cost strategy, and build upon your financial profile. If your plan is to start your business right, you may need to obtain funding from various sources – thus a good financial summary as part of your business plan is very important. Be sure to have the following questions answered:
How much money do you need to start up, launch, and operate your business?
How much money do you need to keep in the emergency business fund – for the unexpected?
Where will you get the money from?

Whether personal, borrowed or invested-how do you plan on paying the money back?
What do you intend to do with the money?
How will you benefit from the financial investment?
What if it doesn’t work out? What is your backup plan?
These are the questions you need to answer before you move forward with the financing of your business idea.
When starting a business, you need to have the dollar amount it will cost you to startup, launch your business, and run the day to day operations. With this amount in mind, take the next step. Either use your own money if you have it or start searching for a source to give or lend you the money. Keep in mind that the amount you estimate to run a successful business should also include an emergency supply – in case of those unexpected situations which all business experience at one point or another.

Where will you get the money from?
When it comes to actually investing money into your small business, and after conducting the cost analysis, you may be stuck. Where will you get the money? Consider the following:
Use your own money from savings
Use the money from your personal credit cards, or lines of credit
Sell personal assets which you can liquidate quickly
Borrow money from family and friends
Borrow money from the bank
Most business owners don’t think of borrowing money in the initial stages because they aren’t 100% confident which way the business will go. Instead, they end up using their own personal savings, their credit cards and borrow money from family or friends.
If you have a business partner or partners, they may be able to follow the same route and try to obtain the funding you need for your business. If the personal search for funding fails, banks, private investors, and the government are the way to go.
Another way of obtaining funding is to go to your local financial institution and apply for a business loan or line of credit. Obtaining a loan or line of credit may be difficult, but it is one of the more typical ways of financing your business, before going to private investors or the government.
Obtaining money from private investors is a good way to get quick cash flow into your business. Keep in mind that investors all want a piece of the action -either part of the business, or a portion of the profits. You and your investor(s) can negotiate and agree upon these details. Depending on the individual, you may be better off with a private investor versus a bank. Some may not even charge interest but just want a return on the investment. However, be careful of the agreements and the terminology of what you decide if you fail to meet expectations and aren’t able to pay back the return.

The government of Canada is a great way to obtain money for your small business. In fact, billions of dollars are handed out each year to small business owners and entrepreneurs just like you. Finding the specific funding programs offered by government agencies that support start-ups, may be difficult. Our Center has the tools to direct you to the most applicable program for your situation.
The Canadian government provides start-up funding assistance with capital investment as well as providing consulting and mentoring services.
No matter the type of services you seek for your new business, be sure to read the Financial Section of this guide and review the available sources of financing for your small business. This will give you an upper hand in applying and obtaining money to start your venture.
Just remember the key questions:
What do you intend to do with the money?
How will you benefit from the financial investment?
How do you plan on paying the money back?
These are the questions banks, private investors, and the government agencies will commonly ask before they give you the money. Ensure the business plan you present to your investors contains the answers to those key questions.

PLANNING FOR YOUR BUSINESS
Planning is one of the most important parts of running a business. No matter whether you have a small business starting up and launching something new, or if you are a large company planning a corporate takeover – planning is always the key to success.
It’s very easy to start something, but if you lack careful planning, it’s like travelling to an unknown destination without a map or a GPS system. Some will get lucky and make it to their destination, but most will get lost, leading to failure.
As a small business owner starting up, it’s very easy to get distracted with the various tasks you need to complete to launch your business- something like writing a business plan may slip your mind, or may not seem important. Especially if you are doing this on your own, business planning is time consuming. Most start-up entrepreneurs are running on minimal budgets forcing them to take the time they do have and focus on making money rather than writing a document.
However, a well written business plan will eventually mean the difference between success and failure for your venture and will by far outweigh the temporary loss of earnings when you

focus more completed.
time on it, getting it

How? Well, a great business plan is a
tool which when completed will
provide you with a reference point for each stage of your business. Simply by looking at the business plan and
seeing how far you’ve come, and
what you’ve accomplished will push you further forward. A well-developed business plan will keep you on track, keep you committed to your vision, and maintain your focus.
For entrepreneurs, sometimes it may be difficult to maintain focus- maybe you are working on one task and one million other ideas are popping up in your head. While this is great, it can also be a curse with respect to the way you do business. Thus, a well formulated business plan at the starting stages of your business research will keep you on point.
The importance of having a business plan cannot be overstated. Taking your ideas and concepts and placing them on paper-seeing that idea function as a business on paper-will prove to be very useful in the startup stages as well as in the future.
To make you more familiar with the whole business planning process, we have compiled the most frequently asked questions about business plans and business planning. Researching and studying the answers will better prepare you for drafting your actual business plan.

What is a business plan?

If you have ever written down your business idea on a piece of paper, cocktail napkin, or sent an email about the idea to yourself for reference – you’ve basically started the process of business plan writing. At its core, a business plan is really just a simple summary that shows your idea, how you see the idea working, and what you are going to do to make it work. Some business plans are quite basic while others can be complex documents it may take a rocket scientist to decipher.
A business plan can be a one page document showing your idea, your goal, and the strategy to obtain your goal. However, most entrepreneurs prefer to make the business plan document much longer and more in-depth in order to have a much clearer path towards success.
Unfortunately, most business owners think that having a business plan is only for starting a small business, or applying for funding. Yet, business plans are also vital for running your business, whether there is a need for funding or not. Business plans should be treated as a schedule of what you need to do to keep your business moving forward. They should also be updated to reflect the growth of your business and any industry or market specific conditions.
Every business has long and short term goals, sales targets, expense budgets, competitors, strengths, and weaknesses. A good business plan captures all of these things into one document to help you better understand and achieve your goals.

Why do you need a business plan?
If you are starting a lemonade stand, you can forgo the idea of a business plan. However, if you are venturing into something more elaborate which will require an investment of time or finances– a business plan is highly recommended.
If you are serious about starting a business, a business plan is a crucial step and integral to your success.
Small business startups benefit the most from having a well formulated, professionally written business plan. It shows the vision you have, functioning inside of a document. This at times is the perfect way to “launch” without launching. If you can make your business work on paper, it will more likely be successful when you launch to the live market.
As a start-up entrepreneur, the need for a business plan becomes very obvious in the early stages of business. You will realize this when you don’t know the answer to simple questions such as; How much money do I need? When do I need the money? Who is my target audience? What do I need to do first?
At the same time, business plans are not just for startups. Existing business owners should also have a business plan in place to help guide the business in the right direction. Business plans for existing businesses reinforce their strategy to achieve their goals, track their results, and manage cash flow. It’s a fact that clearly defined business plans help all businesses grow 30% faster than those that don’t follow a preset guideline.

In simpler terms, why do you need a business plan?
Having a business plan will ensure that your business always has a checklist to follow, from point A, to point B, and to the finish line where your end goals will be achieved.

Why should you write a business plan?
When it comes to the writing of the business plan portion, it can be a pain to actually get the time, sit down and write. However, if you plan on having your business succeed and grow – you should.
You should take the time to write your business plan, at least in bullet points. Here are some basic requirements of a typical business plan. Start by jotting down the following:
Your idea
Your goals
Your strategy
Your financials
Your audience
Your product/service
Your marketing
Your competition
By doing so, you will have a clear idea of where your business is, where it’s going, and how to get there.
If you aren’t creating a business plan to show to potential investors, banks, or the government – you’re simply using it as an internal document for yourself to follow- it doesn’t need to be pretty, detailed or contain charts and graphs. It can be simple bullet points or a checklist of tasks which you can use to follow.
If you are thinking of hiring an advisor or a business plan specialist to compose the document for you – great! However, it is still recommend that you create the bullet point version of everything that is needed in a business plan and provide it to your writer. No one has better insight into the vision for your business than you. Be sure to use yourself as much as you can to get your vision down on paper before you share it.

Who should write your business plan?
As mentioned previously, it is often recommended that you are the first person to write your business plan. If you have partners, ensure that you as the business owner, join together with your business partners and put your heads together to develop the best business plan with all of your ideas and visions together.
That being said, if you don’t have the skills, or the time to write a business plan, you can always hire help. There are hundreds of business consultants who can help you put together a perfect business plan.

You can find a business advisor, an accountant, or a business plan writer to get the help and guidance you need.
Keep in mind, you will have to explain everything to them- your vision, your goals, strategies, and financials. They will do the required leg work for you, conduct all research, and provide you with a professional and usable business plan.
Remember that if you are planning to use your business to attract potential investors, or to obtain financing from the banks, or the government – a professional business plan is a must. If you don’t have the skills of writing a business plan, sometimes it is better left to experts.
One recommendation is to not just write anything for the sake of writing it, if you plan on sending it to banks or when applying to funding programs. A poorly written plan can ruin your reputation with potential lenders.
If an advisor isn’t in your budget, and your skills aren’t the greatest, there are many free resources which can help you formulate a business plan such as; free business advisors, local business offices, or you can even use well known business planning software and refer to online templates and sample plans for extra help.

What are some common guidelines when writing a good business plan?
When writing a business plan you don’t have to reinvent the wheel. Instead, do your research into what makes a good business plan for your industry and follow it. The perfect business plan contains specific sections every investor looks for. Millions of people around the world write business plans – be sure to learn from their mistakes and not make the same ones.
Some businesses have made it, some have failed – but what they have all left behind are guidelines you should follow to ensure you either find their path to success, or avoid their path to failure. Some of these recommendations include:
A business plan can never be perfect. Don’t waste your time “perfecting every point”.
Ensure all essential parts of a business plan are included.
Don’t just research, but research and understand it
Learn from your competitors, your peers, and use business mentors
Maintain focus on your business idea
Know your industry and stick to it
Know your competition better than they know themselves. Become a customer
Be very specific in your action plan. How exactly do you plan on achieving your goal
Build the process in your mind, in your employees minds, and nail it to the door if you must
Constantly update the plan as your business evolves
Clean up your plan when presenting it. Personalize it for banks, government agencies etc.
Ensure your business plan reflects who you are in terms of design and style

Be sure to list out all of your assumptions. Trust your gut and follow it
Be realistic and smart on your projections
When asking some experts who have highly successful businesses as to what advice they can give start- up entrepreneurs in terms of what makes a good business plan, they stated the following;
Look at what other businesses are doing wrong and do the opposite.
Sometimes the best schooling in developing your business plan can be purchased at a book store
Support your business plan with industry stats
Make your business plan clear, concise, and to the point. Don’t venture over 20 pages long
Don’t try to do it alone. Find others who’ve created their own plans and learn from them
Does your business plan tell a story? Captivate your investors by sharing an engaging story about your beginnings
Don’t make your investors look for more information. Be sure you add all the details in your business plan
Always ask others to review your business plan, preferably those with experience
Along with professional advice, ask your friends and family to look over your business plan and offer their advice
Spell it out for your investors: explain exactly how they will make money from investing with you
Be sure to focus on the key demographics
Focus in on your executive summary and get to the hook early on
Don’t forget that there is a human being on the other end
Include real data in your business plan, not just projections
Entrepreneurs who have succeeded can give advice regarding the quality of your plan. Others may suggest the stats to include and various other components. Follow our guideline and accept this advice from successful entrepreneurs to build the perfect business plan for your business.

Where can you find
the market research, industry
and competitor

information for your plan?
One of the major parts of your business plan includes the market research component. In the market research you want to figure out everything you need to know about your business, the industry, the audience and anything else you may find helpful to starting up and running your business.
The more information you have, the more knowledge you have – the more likely you are to avoid the common pitfalls and succeed.
Before you begin with market research, it is very important to know what market research really is.
Most successful small businesses have excellent knowledge of not only their customers, but their competition as well. Market research is simply the process of collecting information which will ensure that you are more aware of how your potential customers will react to your business products and/or

services.
Whether you know it or not, as a small business owner you are conducting market research, most of the time without even realizing. When you are talking about your business, or your products and services with potential customers, or when you check similar prices in the market, you are conducting research. Now, all you have to do is formalize the process.
The level of research you do is really up to you and on your business. You can research the basics:
Attitudes: how a person thinks or feels about something
Behaviors: what actions does a person take or plan on taking
Demographics: personal specifics such as age, income, gender etc.
Firmographics: the characteristics of organization
You can go a much more intensive route and work with a market research company to get the most knowledge out of every aspect out of the industry, market, and your business.
When you are clear on the data that you need to research for your business plan and to ensure your small business can be successful, your options are unlimited as to where you can go and collect the information you need – consider the following:
Labor and employment data
Canadian economy stats
Industry sector data
Public libraries / school libraries
Online websites and directories
Networking and social media
Looking at your competitors
Reading newspapers, magazines, and business news
Checking for previously done market research
Conducting surveys and questionnaires
The ways to conduct research is pretty much endless. All it requires is your time, and possibly a checklist of everything that you need to research about. Be sure to remember the main points:

Product: Research what you are selling
Price: Research the market prices, costs, and how you plan on competing
Place: Where do you plan on selling? How competitive is that market? What will your plan be?
Promotion: How do you plan on promoting?
Remember: One of the simplest ways to research a new business start-up is to spend time looking at others doing the same, or similar ideas in the market. How are they doing what they are doing? Are

they successful? What about
their approach do you like and dislike?
What issues have they

encountered? Is there something unique they are doing that may be working? Who would you buy from, and why?

How do you prepare the financials in your business plan?
The financial portion of your business plan may be the most difficult component of the business plan. This section is where you either see success for your business, or are headed for failure. It is recommended that if you aren’t financially knowledgeable, you should contact an accountant or obtain professional assistance in developing your business plan’s financial statements.
If your plan is to develop your business plan in hopes of attracting potential investors, to take it to the banks or the government for funding assistance, you need to make sure that your financials are clear and correct.
The main components of a business plans financial plan should include the income statement, balance

sheet, and the cash flow statement. Other financial information may dependent on where you are taking your plan for funding.
be required, especially

Income statements, also known as P&L’s, or Profit and Loss Statements are the most important to the success of your business. They showcase the money coming in and how much you are keeping as profit. The calculation is simple; take your business’ income and subtract any expenses you have – what’s left over is your profit.
If you are just starting out in business and don’t have any numbers to go off of, find research statistics on other businesses within the same industry. The most important question to ask is, “What is the trend in the industry?” If for example, you find research that states that the average restaurant in your city (your market) has a 15% – 20% annual sales gain, that’s the perfect starting point to forecast your company’s projections. Keep in mind that when it comes to investors, banks, and funding agencies, you may need to provide them with the research you’ve conducted which shows your findings and those numbers.
Your projections shouldn’t be out of this world. It is important to be very realistic. If you notice in your research that most businesses in your industry have only 3% growth per year, it is not recommended to say 10% for your projections – as this is not realistic and most of the time not attainable.

The balance sheet simply shows how much you are worth. A balance sheet can be used to show the value of your company to investors due to asset ownership. Or it can do the opposite – show your company has assets with large debt – but still remains highly profitable.
The calculation for your balance sheet is simple as well- take everything your business owns, subtract what you owe, and the difference is your net worth of the business.
Let’s use a quick example. You have started a cleaning business. One of your main assets is a brand new van worth approximately $35,000. You purchased the vehicle and still owe $15,000 on credit. Aside from the van, you don’t own anything else as of yet – plus you have no other business debt.
Your business’ net worth is calculated as follows: $35,000 (value of the van) minus $15,000 (left to pay on the van) = $20,000 (your business net worth).
When starting your business, investors will look at what you own and owe in order to estimate the equity of your business, how valuable you are to them, and to determine whether your business is worth an investment. Along with a balance sheet and your projections – the financial portion of the business plan is often the main reason new business owners are successful at obtaining funding.
The next portion is the cash flow statement. The cash flow statement simply shows where the money is coming from, and where the money is going. What are you being paid for, and what are you paying for?
A cash flow statement is important to investors as they see the spending habits for your business, and evaluate the overall position you are in to pay them back. If you are spending way too much on certain things, they may not see the potential for a return on their investment and decline you funding. On the other hand, having steady cash flow is appealing to investors even if you have a balance sheet showing you owe more than you own.
A cash flow statement is also an excellent tool for you as a small business owner to track and control your spending. Keeping your books organized will help you check the cash flow statement regularly to see where you are spending too much and curb this behavior before all your money disappears. Most small businesses control their spending using the cash flow statements. Thus, it’s very important to keep it as accurate as possible.
When writing your business plan for investors, banks, and the government, it may not be enough to show your income statement, balance sheet and cash flow statement. Some investors will want to see more than just your business financials, especially if you are just starting out. Personal financial statements may also be requested. If you are just starting out and a potential investor is thinking of lending you thousands of dollars, they may want to see your personal net worth-how much you own and how much you owe- to see whether you are a good financial investment for them.

What are some common mistakes in writing a business plan?
Many elements come together to make a perfect business plan. Writing the best plan takes a lot of time, patience, and sometimes many revisions to get it right. Keep in mind that no business plan is ever

perfect. Trying to make it perfect will keep you in the “development” stages longer. It is recommended to update your plan as you move along in your business – not spend all of your time writing it in the startup stage.
Business plans often get neglected. As a small business owner you are focused on getting your business launched, trying to obtain financing, and so many other things. But, forgetting to build your business plan is often the number one reason businesses end up failing. When it comes to writing a business plan, here are some common mistakes you need to avoid:
Creating unrealistic financial projections
Investors who are planning on providing you with funding for your small business expect to see realistic and achievable goals. They want to see where your business is now, where it is going, and a plan on how to get there. Therefore be very realistic. Base your projections on research and using your findings, be prepared to show and explain how you obtained the projected figures.

Not focusing on your target audience
The businesses which fail are the ones who state that their target market is “everyone”. Not all businesses appeal to everyone. You must spend time on research and understand who your specific target market is. Build your business plan according to this info and how you plan on targeting this specific market. Remember that there is always room for growth for other audiences, but your main goal is to focus on your primary target audience during the startup stage of your small business.

Don’t over hype your business
When taking your business plan to investors you need to wow the investor with your business idea, the research you’ve done, and the financial plan you have in place. Don’t start off by hyping your business up to be the greatest thing ever invented, the most profitable billion dollar business, and then say, “It’s a lemonade stand!” Your investors need to be excited, but realistically wowed.

Conducting bad research
With so many places to conduct your research it’s easy to get massive amounts of information. But how do you know whether the information is accurate or not? Do you really plan on starting your business and investing your time and money without ensuring the information you collected and the research you have is correct? Always do double research and double check your findings. Things like reading statistics online about the growth of a certain industry may be out of date and no longer relevant. As an example, you may read an article online that says flip cell phones are taking the industry by storm and sales are up 300% year over year in sales growth. In reality, that article may have been posted over 10 years ago. Conduct your research and double check it.

Lack of focus on your competition
There is no such thing as no competition. Even if you think your business is unique, and you are fulfilling a need or a want, if you weren’t in business the customer would go somewhere else. That is your competition. Not focusing enough on your competitors will endanger your business. At the same time too much focus on your competition and having the constant fear of failure will destroy your business. Finding a good compromise and conducting the appropriate research is exactly what you need to do.

Hiding your weaknesses
When going for a job interview, people have different strategies. The first is to hides their weaknesses – and they will most likely end up failing sooner or later. Another is to shows his/her
weaknesses and then the employer isn’t interested. While the third person shares his
weaknesses and a plan for overcoming them. This is the person that gets hired. It is not any different when it comes to running a business and writing a business plan for investors. Your investors want to make sure you know your weaknesses, and that you have a plan in place to overcome them.

Not knowing or not having a distribution channel
Knowing how to get your product or services across from start to finish (your customers) is crucial to the success of your business. It isn’t enough just to say, “I’m going to sell my idea in a store!” You must have a plan to get into that store. Do you know how difficult it is to get into a retail store to sell your products? Showing potential investors you have thought it out, and that
you have an action plan is much better than just saying what you think you can do.

Providing too much information
Nobody wants to read a 200 page business plan. Most investors look and listen for the top 10 points in a business plan. If you take too long to get to these points, you’ve lost them before you even had a chance to start. Remember that the purpose of your business plan when presenting to investors is not to show how much work has gone into putting it together, but to show your idea, your goals, and your plan of action. Really, investors are just waiting to hear
how their investment will help you, what it will get them in return, and how soon.

Being inconsistent
Take time to review your completed business plan. If you have partners, or multiple people writing your business plan, it is important you are all on the same page and have the exact same vision. Contradicting yourself or being inconsistent throughout your plan will turn away investors.

Not asking for help
As shown, writing a business plan, takes a lot of time and patience. Sometimes you just want to get it over and done with. It is important that you ask for assistance on certain sections where you seem to be stuck. Help can be professional advice or just an extra set of eyes. It is always

suggested to have more people read over your business plan and offer their feedback and support. Simple grammatical errors or run-on sentences can turn away certain investors.
These are just 10 of the most common mistakes people make when writing a business plan. Be sure to not make the same ones.

In what order should you write your business plan in?
Most people think

that writing a good

business plan is as simple as starting on the first page and working all the way to the end. However, the first page(s), are usually the last that you should do. Why is this?
Well, the first section of your business plan is your executive summary. Your executive summary takes your entire plan and summarizes your business. This portion of your plan summarizes what you want and
what you are looking for – especially from
investors. Think of it this way, an executive business plan is most of the time, your sales presentation. Most investors will look first at this set of pages to see whether the business they are about to invest in is pleasing to them or not. The executive summary captures all of the main interesting points, outlines your plan of action, and showcases your vision for your company. It also expresses what most entrepreneurs have a tough time saying to investors, “This is who I am, and this is what I want or need from you”. It has to be appealing and persuasive enough to give the investors the desire to invest in you.
Your business plan has to follow the outline most professional business plan writers use. These components are discussed below and we recommend you follow this format:
Executive Summary
The executive summary or the company overview outlines your mission, vision, values, product/services, their unique attributes, and the business opportunity you plan to seize. It also is your opportunity to say, “I want this” when presenting to potential investors.

Business Environment
The analysis of your industry; your marketplace, your customers, the competition, and how you currently measure up or plan on going toe to toe.

Company Description
Think about the capabilities which give you a unique advantage over your competitors- including your management, technology, operations, distribution, services, finances, and marketing.

Company Strategy
The company strategy portion of your business plan is your roadmap to the future. Show how you plan on taking advantage of opportunities and avoiding risks. All of your growth plans, marketing plans, and even your business exit strategy are in this section.

Financial Review
What is the state of your business? In the financial review section of your plan you discuss your business financial standings. This includes your income statements, the balance sheet, cash flow statement, profit projections and your operational budget.

Action Plan
Once you have your plan all set, your next step is to take action. Thus, an action plan comes in handy. In the action plan, you will jot down the steps you will take to implement your business plan to meet the goals and objectives which you set out to achieve.
Ideally, this is what a business plan format should look like. However, every business owner may add a unique twist to their own plan. It is recommended to keep the terminology the same as potential investors look to those specific sections to help aid their decision-making process. Spend some time and look at some business plan samples and templates to get more familiar with the proper order of business plan writing.

Should you be using software to help you write your business plan?
Writing a business plan can be very time consuming and confusing – especially if you’ve never written one before. Hiring a professional to help you write the perfect business plan can cost you anywhere from $3,000 to $5,000 for a completed and well researched plan.
Business plan writing software can cost less than a $100 and seem appealing. But when it comes to writing your plan, is software a good idea?
Business planning software can help you figure out the questions you need to have answered in a business plan. Business planning software helps you get a business plan together piece by piece and can help you complete one much faster than you would starting from scratch. At the same time, most business planning software misses out on important details which investors look for, such as your own personal touch.
While they are useful, and some of them are pretty amazing at quickly generating a business plan, others produce amateurish results- and trust us, this isn’t what you want to show an investor, business advisor in a bank, or a funding program coordinator at a government agency.
We recommend business planning software as a helpful resource to get started. To get the most out of business plan writing, use a professional writer or follow a strict business plan writing guideline.

Where can you find sample business plans and templates?
Just as with business plan writing software, business plan samples and templates have their own pros and cons. If you are simply reviewing a sample business plan for the outline, great – however if you are matching components of another plan to your own, you are headed in the wrong direction.
Most sample business plans on the web are created as “samples only”. These documents are not from real functioning businesses, but strictly created as dummy business plans to be used as a resource to help draft actual business plans.
99% of the time the statistics, facts, and figures are incorrect and should not be used.
On the other hand, they do give you a good idea of what a business plan should look like. Using sample and business plan templates, you should have enough examples to get started on one of your own business plans.
The best way to find sample business plans or templates is to search online. Simply type in your industry name, plus the keyword phrase “business plan sample”, or “business plan template” and this should yield some good results for you to review.

How long should your business plan be?
The length of a business plan really shouldn’t be an issue for you, or something to think about at the early stages. Your business plan should cover all of the important components and include any and all information you believe is relevant, helpful, and that a potential investor would be interested in knowing.
It is important to cover the basics and explain enough to build an understanding of what you are trying to accomplish for the reader. If you go overboard and over explain, the reader would be bored half way through and you could potentially lose the investor.
At the same time, if you don’t provide enough details in certain sections of your business plan, the reader or investor may feel that they don’t have enough information, or that your business idea is not ready for funding.
A business plan can be anywhere from one to one hundred pages. This really depends on you, your research, and the purpose of your business plan.
If you are writing a plan to obtain funding, ensuring all of the components are there and you feel confident you’ve answered all potential questions, the length of your plan should not matter.
If the plan you are writing is just for you and your partners to use as a business reference or checklist, again ensuring you have enough information is all that matters. The length of the business plan does not matter here.

It is important to understand that the business plan is for you and for your investors. We cannot stress enough how completing all of the components of a business plan is highly recommended.

Can you go on without having a business plan?
Sure you can!
However, with the number of small business startups which fail every year due to lack of planning, it is alarming to think you could suffer the same fate without a proper business plan or blueprint.
If you are planning on starting something that is more complex than a lemonade stand, if you wish now or in the future to obtain a business loan or any sort of financial assistance, if you are looking for a business partner or investor – or if you are thinking of selling your business one day – you need a business plan.

BUSINESS CONTINUITY PLANNING
When it comes to business, especially in new business, a plan is very important in order to keep the operation moving forward. Problems arise in every business. Whatever situation arises, you as a small business owner need to be prepared for it. You don’t want all of your hard work to go to waste because of an unforeseen problem that you might have been able to prepare for.
Problems can come pop up in an instant which can put your business at risk or shut you down for good if you’re not prepared. Whether it’s a natural disaster such as a snow storm-especially here in Canada- an emergency situation, a supplier issue, merchant payment processing problems or anything else that may come up, having an emergency business “move-forward” plan is always a good idea.

What are the steps of business continuity planning?
While no one can predict the future and know what will happen or go wrong, you can be ready with a business continuity plan and handle any situation that may come up.
With a business continuity plan you are preparing your business to move through a difficult time should one arise. You are also showing your employees, investors, and customers that you are on the up and up- you are proactive, efficient, you care about your business and want to ensure you can still operate during a serious threat or disruption.
Step 1: Assign Emergency Contact Persons and Responsibilities
When emergencies occur, most people panic and don’t know what to do first. Think of young children in school without the guidance of a teacher and the fire alarm goes off.
You don’t want to be in that situation, especially when your business and potentially people’s lives are at stake. It is always a good idea to assign a point person who everybody should listen to, or follow in case of emergencies. On top of a key person, responsibilities should be assigned so that important procedures of your business are kept functional in case of emergencies.
It is important that this key person is a manager – somebody with leadership skills who can actually get things done.
Here is a quick example of assigning an emergency contact person, as well as key roles.
Let’s say that you recently started a small factory producing parts for a local auto manufacturer. Your production line is a fast moving machine with employees at the start, middle and end of the line who must be there to ensure the machine and the line is moving along fine. You as the small business owner just took out a loan for $250,000 to purchase this new machine to make your business functional.
The fire alarm sounds and you smell smoke – everyone must evacuate the building. Without assigning roles or an emergency contact person, everyone left the building. It was a false alarm as there was burning popcorn in the lunchroom. Upon your return, you find the $250,000 machine still functioning as if business

was going as usual. But, since there were no employees supervising the production line ensuring all is going well, the machine clogged, products were falling of the line, and you estimated hundreds of items damaged, and damage to the machine itself.
You potentially just lost thousands of dollars and have a damaged machine, disabling you from moving forward until all is fixed – and you are on a tight deadline.
If you had only defined the key roles in case of an emergency, and prepared the key contact person all this could have been avoided. In case of the fire alarm, your contact person would let the team know to power off the production line and the machine to avoid damage. They would also help everyone calmly evacuate and both your employees and equipment would be safe.
This is just one example of a fire in a factory. However, it shows the importance of setting your key roles and responsibilities in case of an emergency. It is important to work with your emergency contact person during the planning and implementation stage. Work together on policies and procedures. Ensure they are well educated on all aspects of your business and emergency planning.
Also note that emergency planning doesn’t always mean fire damage or natural disasters. It can also be as simple as employees not showing up for work, power outages, or running out of money.
Step 2: Determine Essential Services and Prioritize
Once you have an emergency preparedness plan in place and you’ve discussed any procedures with your emergency contact person, it is important to have continuous updates and communication with your team and staff. Even though one person, or one team is the “emergency team”, it is important that everyone in the company is prepared for the worst.
Your next step is to determine the essential services of your business in case of these emergencies. By determining the essential services and by prioritizing them, you can prepare and avoid maximum damage to your business.
Prioritizing should be done on a profitability basis. You should always do what is the most profitable for your business first, followed by the next most profitable thing. At the same time, businesses may have tasks and duties that don’t seem profitable or don’t seem to have an effect on your business – but could affect something else. These should all be considered into the prioritization.
When developing your emergency business continuity plan, you should take all aspects of your business into consideration.
Step 3: Identify the potential threats
In any business, the owner is usually the one who knows what the potential threats may be. Whether it be natural disasters, competition moving in, financial issues, or absent employees, you need to identify all threats and have a plan for overcoming them.
In your preparedness plan, you should outline each potential threat and discuss all issues which may be related to that threat. An action plan for each individual threat is recommended along with assigning

key responsibilities to people in your organization to help mitigate the potential effects on your business.
It is important to have a detailed description of all of the services and functions of your business outlined so that your key people understand the procedures of keeping your business running.
Step 4: Review Your Business Continuity Plan
It may seem silly to talk about natural disasters and preparing for them with your staff. But rest assured that your employees will appreciate it. It will show them you are thinking ahead and care about them and their livelihood. Not only will your employees be satisfied, but you are preparing your business for a strong likelihood of being operational during emergencies.
It is important to discuss your plan with your staff and to assign the key people and key responsibilities. It is also important to continually review your plan and test it.
Step 5: Testing and Updating Your Plan
Responsibilities in a business change as the small business grows. Your staff may change year after year – and it is your responsibility as a business owner that you prepare your staff over and over for emergencies. Taking your plan and ensuring that it is up to date with key responsibilities and business procedures is necessary to ensure up-time during any emergencies.
A business continuity plan is yet another plan or checklist which is highly recommended by successful entrepreneurs. It doesn’t necessarily need to be written down, but the important procedures should be made aware of, and constantly updated.
The last thing you want is to have all of that hard work making your small business dream into a reality wasted due to an unexpected problem that could have been avoided by planning ahead.
No matter if you are the only person running your business, or if you have business partners, or multiple employees – a proper plan, shared among the company should be always in the back of your, or your staff’s minds.
Be prepared for the worst and you will already be ahead when the going gets tough.

WRITING YOUR BUSINESS PLAN
As a small business owner, or start-up entrepreneur a business plan is your best friend. However, most people cringe at the idea of writing one.
Business plan writing is time consuming, complicated, and confusing. Most people just starting out, simply say “I’ll get to it eventually”. This is one of the biggest mistakes a small business owner can make, especially in the start-up stage of the business. We’ve already discussed why it’s important to have a business plan for your small business. Let’s now instead dive into each of the components of your business plan.
The business plan writing style you opt for depends on the purpose for your business plan. Are you writing that plan for the purpose of attracting funding from banks, investors, or the government? Or, is this plan intended for internal use only?
Depending on the purpose of your plan, the style of writing may be different. However, a business plan should always be written in a standard format. It should be written and presented in a way banks and investors are accustomed to.
By following a standard business plan outline, it will keep you on track and increase your chances of obtaining funding from banks and investors. Also, by following the standard outline, you will ensure all aspects of the business plan are completed, giving you the most knowledge regarding your business, the industry, and the potential success of your business.
It is important to build your plan and then organize it into the layout of your choice. Why? It is important to make your business plan unique to you. You can keep the standard titles of each section or you can customize them according to your preferences. However, maintaining the information required from each component of a plan is highly recommended.

Is the order of the business plan important?
Not necessarily. What is important is to ensure that you cover all of the main components. Even though a standard business plan outline is recommended – you can customize your plan to match your own personality and your own business.
Remember that the way you present the business plan isn’t necessarily the same way you would write your business plan. For example, the executive summary – even though it appears first on the list of the business plan outline, it usually is the last section to be written, as it summarizes the entire document for the reader.
We have included below for you a simple business plan outline, along with a quick explanation of each of the components, followed by a more in-depth business plan outline with featured sections listed from each of the main components.

Be sure to read and understand each of the sections before proceeding to use either a business plan template, business plan writing software, or starting from scratch. Let our centre know if we can be of assistance in answering any of your business plan or business startup questions.
The simple business plan outline includes the following components:

Let’s now take a look at each section of the business plan:
Executive Summary
The executive summary portion of your business plan is like the front door to your small business. This component is the perfect opportunity for you to capture the reader’s attention and let them know exactly what it is that you do, why they should continue reading, and what you aim to accomplish.
Most likely you’ve heard of an “elevator pitch” and hopefully have had success doing one. The executive summary is really your elevator pitch. For those that aren’t sure what it is, an elevator pitch is an explanation of your business in a minute or less.
Think of it this way: you walk into an elevator with potential business investors and they are going to the top floor which takes 60 seconds to get to. You have 60 seconds to impress them. This is where you do all that it takes and pitch them all you’ve got. This is a perfect place for an executive summary to come into play.
Your executive summary should introduce you, your business, and your products/services. It should provide convincing, hard selling evidence of why the reader or business investor should actually listen and be interested in investing in you.
The executive summary should be written last. As we mentioned, even though the executive summary is the first component of a business plan, many entrepreneurs who’ve had great success choose to write the executive summary after they have completed all of the other components first.
Ideally, the summary is short, as short just one to two pages and highlights all of the main points you’ve made elsewhere in your business plan. By writing the executive summary last, those key points from all other sections of your business plan will be easy to note and add to your first one to two pages.

Company Summary
The company summary portion of your business plan is an overview of you, who you are, and what you do. This section should summarize your vision in depth and describe what you want to provide to the market. It should show the reader all of the interesting little facts about your business such as; when the company was founded, information about the owners, where and how your business is registered and a bit about your sales and growth trajectory.
In this section it is important to show your individuality. Show how your business is unique -especially if you’re speaking to investors. You have to sell yourself as much as you do your business. The history, the present, and the future matter a lot in this section.
Products and Services
A complete business plan lists and describes the products and services which you provide. Think in terms of the customers’ needs and customers benefits when trying to define your product or service offerings, rather than thinking simply as a business owner.
The products and services part of your business plan is mainly descriptive. Some entrepreneurs may choose to include tables which provide additional details, but most of the time, this section of the plan is strictly text.
For each of your business offerings, it is important to cover the main points and describe them in detail. Ask and answer these questions:
What is the product or service?
How much will it cost?
Who are your customers and why?
What need does your product or service fulfill?
Again it’s often a good idea to think as a customer rather than just a small business owner focusing on the product/service cost and how to deliver the product.
Be sure to discuss how your products or services generally compare to others. Why are yours better? How do you position differently in the market than others?
Maybe you don’t have a unique product or service, but you may have other advantages. Let’s say you are starting your own ice cream parlour. A highly competitive industry, however you have no unique advantage over your competition – same flavors, same idea, same everything.
But by going to a potential investor with a presentation that says that, you might as well shoot yourself in the foot and walk out the door with no funding. Instead, think of all potential aspects of why your business may be different? Maybe there are similarities, but what if your location is between two schools and close to a sports arena – this may be a big advantage over some of your competition – making your shop unique and with more opportunity.

In other words, describe the important competitive features of your products and/or services. Do you sell better items, have better prices, better quality, better service, are you in a better location – or anything else you can think of.
Be sure to refer to your SWOT analysis for additional details that may make you unique.
Market Analysis Summary
No matter if you are writing a business plan for your own management purposes, or for the banks, private investors or for the government you should always know your market.
Take a moment here and get into the nitty gritty of your industry. You will need to explain the type of business you are in. What is the general state of your industry and the nature of your business?
Whether you are a service provider, a manufacturer, retailer or something else, you’ll want to make sure you know your industry inside and out. It is important to know and understand the basics as well as the more advanced analysis you need to conduct such as:
Market Segmentation
Target Market Strategy
Market Needs
Market Trends
Market Growth
In-depth Industry Analysis
Industry Participants
Distributions Patterns
Competitive and Buying Patterns
Your Main Competitors
Remember that everything in your industry, happening outside of your business will affect your own business as well. The more you know and understand about the industry that your business is in, the more of an advantage you will have.
A complete business plan will contain all of the main points such as general industry economics, participants, distribution patterns, but also factors in the competition and whatever else that can describe the nature of your business to outsiders reading your plan.
You should know who else sells in your market. It’s very difficult to describe a business in detail without going into details about other participants. Including participants of your industry into your plan can make a huge difference.
But what does industry participants really mean?
In simple terms, its research based on your competition on a general level. Is it a small mom and pop type of operation or is it a global powerhouse such as a McDonalds on every corner. It’s important as it will help you understand the competition and the opportunity you have. If you consider opening a

burger joint in an industry that is swamped with corporate restaurants such as McDonald’s, Wendy’s, or Burger King, you will face steep competition. However, if you are specializing in a product or service, and the only competitors are ones similar to you without much corporate backing, you may have a fighting chance.
Aside from the general idea of your competition, it is highly recommended to conduct an in-depth analysis of your main competitors.
What are the strengths and weaknesses of each of your main competitors?
Take into consideration their products, pricing, reputation, management, financial position, channels of distribution, branding power, business development, their technology and any other factors that you may see as valuable to research into.
Ask these important questions when doing so:
In what segment of the market do each of your competitors operate?
What seems to be your competition’s strategy?
How much of an effect will they have on your products/services?
What are some of the threats, and opportunities your competition poses for your business?
Strategy and Implementation Summary
Knowing your strategic position for your small business is very important. This section of the business plan is where you would jot down your business strategy as well as your implementation strategy.
Your strategy should consist of what you are good at and what you can do for your target market. If you have a product or service which fulfills a need or a want, describe it here and use it toward explaining how you are going to achieve your goal and build a loyal customer base.
It is important to be specific in your strategy.
Be sure to explain your strategy in detail and include important aspects such as how management will ensure that the strategy you set in place is followed and what needs to be done to achieve it. Include dates and budgets and be sure that you are tracking your results.
The strategy you set for your business and to achieve your goals needs to be detailed and clear enough that any reader can understand exactly what you plan on doing, what you aim to accomplish and how.
Management Summary
As a business owner, you know what skills you have and the skills required to make your small business as success. If you are able to hire employees, and possibly have business partners – it is important to

know their skills and experiences. You must know how much it will cost successful with those experienced personnel.
to make your business

A management summary of your business plan is important as it will provide an explanation of your

management team, the management philosophy, backgrounds of your functions of each, and the costs associated with covering your personnel.
management staff, the

The management summary portion of the plan should summarize exactly that; your management. Be sure to cover basic information such as; how many employees the company has, plans on having; how many managers; and how many of those are partners in your business?
Is your business structure sound? Meaning, does each position have a clear title, job description, applicable skills, and responsibilities assigned?
Is your team complete or are there gaps which need to be filled? When it comes to start-ups, you may only have one or two members on your team, so be sure point out the gaps and weaknesses of your management team. Discuss a strategy to overcome those weaknesses and show a plan for filling those gaps.
It is important to have a clear explanation of your business structure, especially if you are discussing the business plan with possible investors. Your investors want to ensure they are dealing with the decision- maker for the business, and somebody who can determine the best outcomes for the business.
By showing a clear business structure internally as well as to business investors, it will position you better for a successful outcome. If you have a clear picture of what everyone needs to do, you are more likely to move forward smoothly.
Financial Plan
The last section of your business plan outline, and often considered the hardest to complete is the financial plan.
Depending on the research you conduct on financial planning for a small businesses, there are various opinions on what a financial plan should include. However, the standard business plan writing outline suggests the following elements:
Cash Flow Statement
Profit and Loss Statement
Pro-Forma Balance Sheets
Sales Forecasts
Personnel Plan
Business Ratios
Break-Even Analysis
Market Forecast
Each of these elements are very important, but depending on the purpose of your business plan; some may be more so than others. Remember that you are taking your business plan to potential investors, the banks, or to the Canadian government for grants and loans funding. All details should be completed to the best of your ability and with realistic forecasts backed up with extensive documentation.

A cash flow statement is the most integral element of the financial plan. Remember that businesses run on cash, and no business plan is complete without a cash flow plan.
Most business owners utilize this equation: sales, minus costs and expenses, equals profits – but most forget that we have to manage the cash as well.
Cash is critical. However, business owners think about profits first instead of cash. We all do, it’s just in our nature. When you think of a new business starting up your mind is trained to think what the cost of your product will be, what your expenses will be, and once selling, what will be left over as profit. Unfortunately, we don’t spend the profits in a business – we spend cash.
Many profitable companies go broke and fail due to bad cash flow management. Having money tied up in assets, or waiting for cash to come in can hurt your business if you don’t have enough working cash stored away in the business.
Next we have a profit and loss statement which incorporates sales, cost of sales, operating expenses and profits all into one summary. A P&L statement is also a pro forma income statement. A simple calculation to figure out the bottom line is (Revenue – Expenses = Net Income).
The income statement, or profit and loss statement is very informative for a business as this is where you capture everything-all of your numbers; the money coming in, the money going out, and where you are losing or making money.
It is recommended to review your profit and loss statement regularly and before presenting your plan to the banks, the government, or private investors. Upon each review, consider the following:
Find the bottom line
Look for the sources of your income
Look at your expenses categories
Look at the amounts- are you overspending?
Compare month to month or year over year numbers
Stop and think about it
Next on the list is the balance sheet. Aside from cash and income, there is the balance of assets, liabilities and capital.
The balance sheet provides a clear snapshot of your business’ financial condition right now. It lists all of the company owned assets, its liabilities, and the owners’ equity all in one document. Simply by subtracting your liabilities from your assets, you can determine the company’s net worth at any given time.
The balance sheet is divided into three main parts:
Assets – assets are those that can be converted into cash within one year. These typically include cash, stocks, accounts receivable, prepaid expenses, and your inventory.

Liabilities – your current liabilities are your debts. These debts are the obligations which you owe and are due within one year.
Owners’ Equity – owners’ equity is the sum of all of the shareholders money that is invested into the business along with the accumulated business profits.
The next step of your financial plan is the sales forecast.
Developing your sales forecast isn’t as hard as most people think. It is recommended to think of your sales forecast for your business as a well educated guess. If you’ve conducted your research of the industry, the market, and your competition, you should be able to make that well educated guess and be pretty certain about it.
If you are a new start-up business, try to break the sales forecast down into more manageable parts such as going line by line with your sales, or month by month adding it all up at the end.

If you are having difficulty, it’s recommended to get assistance from an accountant who can work with you to build the sales forecast.
expert or possibly an

As it is a major point investors look to, sales forecasting shouldn’t be skipped over. It is better to make an educated estimate backed by documentation from your research, and aim to achieve it, as opposed to not providing any forecast at all. Missing crucial info like a sales forecast can make you seem unknowledgeable and unprepared, forcing investors to reject you.
Following the sales forecast, we have the personnel plan. In the personnel plan section of your financial plan we have the cost associated with your staff and employees. Personnel costs are so intimately related to fixed costs that they should be set aside and discussed in detail. In some business plans, they too, like the sales forecast can be just a line or two on the income statement.
The business ratios portion of your financial plan are the ratios calculated with the numbers from the pro forma income, cash flow, and balance sheets.
Business ratios aren’t always necessary for your personal internal plan, however it is something bankers, investors and the government funding agencies may ask you for. These ratios often include numbers such as gross margin, return on sales, return on assets, and an investor’s favorite – the return on investment.
Other ratios to keep in mind are the debt to equity, current ratio, and working capital.
As these exercises can get a bit complicated, it’s recommended to research further into each ratio and how best to calculate them. You can also work with an accountant to give you the most accurate help for your unique business.
Another important component of a financial plan is the break-even analysis. A break-even analysis looks at the amount of money you make, compared to the amount of money you spend, and calculates the amount of money you have to obtain in order to be at $0 – meaning no loss or no profit. This is a benchmark that you have to maintain in order not to win or lose.

In even simpler terms, a break-even analysis determines what you need to sell to cover your costs of doing business – whether that number is calculated per day, per month, or per year.
The final portion of the financial plan is the market forecast section. While very similar to the sales forecast; a market forecast can give you and your potential investors a picture of the future and your business growth.
Again, you are the expert in the field of your business and your industry. With all of the research you’ve conducted, you can see the potential market opportunity, and you are able to estimate the potential growth of your business in that market.
Think of it this way-if your main product is providing residential cleaning services in one city, you can plan expansion into other cities to increase your sales forecast. If geographic expansion isn’t an option, offering commercial cleaning services may be possible and you can expand into somewhat of a new market. The possibilities are endless.
You, as the expert in your business and in your field should be able to accurately estimate the opportunity in your market and forecast the potential for growth.
With that, we have concluded summarizing the main components of a simple business plan outline. As mentioned, as long as you include the main components and answer the required questions, feel free to alter the layout as you see fit.
If you are interested in a more detailed version of a business plan outline consider the following advanced business plan outline:

Executive Summary
Objectives
Mission
Keys to Success
Company Summary
Company Ownership
Company History- for ongoing companies
Start-up Plan -for new companies
Pricing Strategy
Promotion Strategy
Distribution Patterns
Marketing Programs
Sales Strategy
Sales Forecast
Sales Programs
Strategic Alliances
Milestones
Management Summary

Company Locations an
Products and Services
Facilities
Organizational Structure
Management Team
Management Team Gaps

Product and Service Description
Competitive Comparison
Sales Literature
Sourcing and Fulfillment
Technology
Future Products and Services
Personnel Plan
Financial Plan
Important Assumptions
Key Financial Indicators
Break-even An lysis
Projected Profi and Loss
Projected Cash Flow

Market Analysis Summary
Market Segmentation
Target Market Segmen
Market Needs
Market Trends
Market Growth
Industry Analysis
Industry Participants
Distribution Patterns

Strategy
Projected Bala
Business Ratios
Long-term Plan
ce Sheet

Competition and Buying Patterns
Main Competitors
Strategy and Implementation Summary
Strategy Pyramids
Value Proposition
Competitive Edge
Marketing Strategy
Positioning Statements

Appendix
The longer in-depth version of the business plan outline includes the same components but breaks down the various sections to help more easily organize your writing tasks. Follow this outline step by step to ensure a professionally written and all-inclusive business plan for internal purposes or to present for potential funding from banks, investors or the government.
Review sample business plans, use the business plan template provided, and be sure to get familiar with your business plan writing FAQ’s before proceeding to write your own.

FINANCING FOR YOUR SMALL BUSINESS
If you are planning on starting a small business in Canada, chances are you’ll need some form of capital. The term capital simply refers to the money that helps finance our business.
As we know, one of the main reasons why so many small businesses fail is due to a lack of funding or control of funds. Therefore, it is very important to know how much money you will need to not only get started with your small business, but to run it day to day, and to grow.
Some key questions you should ask yourself before looking for financing for your small business are:
How much money is required to start your business?
How much of your own money do you have to invest into the business?
Do you have the assets needed to start, or do you need to purchase assets to start your business?
Can your family, friends or others who are willing, help you invest in your business?
What kind of credit score do you have and what available lines of credit do you have?
Knowing how much money you need to start and operate your small business will help you figure out if you have enough- whether it’s from personal investments, borrowed from friends or family, or from banks, the government and private investors.
Finding financing in any economic climate is very challenging. Preparing for this part of starting up your small business is key to its success or failure.
Since so many small business owners skip or falter at this stage, it will determine the outcome of the business fairly quickly thereafter.
When you are lacking capital in your business there is only one way to go. Be sure to plan ahead and consider all of your possible financing and funding options to get money moving into your business when you need it.
Your opportunities to obtain financing/funding are divided into three main groups:
Personal Financing
Private Sector Financing
Government Financing
Before going down this road, it is important to have answers for the questions asked above. Simply knowing how much money you need to start and run your business will help you determine how much you need to invest or to borrow.
Keep in mind that underestimating how much you need to startup and run your small business could sabotage the whole operation pretty fast. At the same time, over investing into your business could have negative consequences as well. While it’s great to have more money than you need in your business, it all depends where that money is coming from

If you invest your personal money into the business, fine. However if you are borrowing money that you may not need past a certain amount, this could hurt your business. Remember that you have to make payments on borrowed money – usually interest payments or some sort of return to private investors. If you aren’t actively using the money- just keeping it in case you run into an issue – these payments are still required and this could hurt your cash flow.
It is important to know exactly how much money you need. Know how much money you need to operate day to day. Know how much you need to have saved in case of emergencies. Know these amounts and only invest or borrow that much. While being able to get more is great, it’s better to know you have access to it, rather than physically taking the money.
The three main methods of obtaining financing are personal, government and private. Which one is right for you?

PERSONAL FINANCING
It may seem that you are borrowing money from yourself when it comes to personal financing. It means that you are simply using yourself as a source or lender.
Does it mean that you are borrowing money from yourself? The answer is both yes and no.
When it comes to personal financing, there are a number of ways to obtain financing for your small business startup:
Personal Savings
Personal Credit Cards
Personal Lines of Credit / Loans
Through Personal Assets
Through Family and Friends
Business Partners
Whichever way you look at it- whether it’s you or somebody else putting money into the business– it is a business investment. When dealing with personal financing options, you get to determine how much or how little you put into your business.
When starting your small business in Canada, you will likely obtain a large chunk of the capital needed to get started from personal savings, family/friends, or from multiple sources in the personal financing options previously mentioned. In fact, according to Stats Canada – 76% of small businesses find the capital they need through personal financing.
While it is good news f you are able to fully fund your own business 100%, it is not recommended. Instead, aim to fund approximately 25% to 50% of your business out of your own pocket. By doing so, you are keeping some personal money out of the business but still showing potential lenders and investors that you are personally assuming some of the risk in the business. You appear committed. Think of it this way, if you are asking a family member to lend you money to start your business, but are unwilling to put in any of your own, this is going to raise some red flags. If a family member wouldn’t be interested in this arrangement, can you imagine why a serious business investor would be?
Personal Savings are usually the first pot of money small business entrepreneurs draw from for their business venture. Why? It’s the easiest and seems to have the least risk involved. Maybe this is exactly what you have been saving for?
Personal savings are great to use for investment into your business. At the same time, you must be careful as to how much of your personal savings you invest and how much you keep in your savings accounts.
One issue that often arises for startup small business entrepreneurs is that they take all of their hard earned savings and invest it into their business in the startup stages. During this stage of business profits aren’t being seen just yet. And since the business isn’t making money, the savings are depleted.

You as the main investor may feel discouraged, make bad decisions, and start borrowing massive amounts of money which you may not be able to pay back.
Remember that your personal life plays a huge role in ensuring your small business succeeds. If you as the small business owner is stressed, worried, and distracted, you aren’t able to make the best decisions for your business.
Personal Credit Cards is the next financial source most small business owners turn to when in need of quick capital influx.
Most people already have credit cards which means that you don’t need to go out of your way to see if you can obtain a business loan, or a business credit card just yet. You can start using the funds available on your credit card to pay for those small expenses for your business.
While doing so is fine, there are a number of factors you must consider when using your personal credit cards as a form of financial investment into your business:
What is your spending limit?
What is the interest rate?
When are your payments due?
What are the fees and international conversion rates?
Are you able to collect points or obtain a % return on purchases?
All these factors play a serious role in ensuring you don’t go into debt because of your credit card charges.
Know your spending limit and how much you are able to borrow on your card. This will ensure you keep in line with how much is available. Overspending on a credit card can add hefty charges to your bill. Avoid additional charges as they may hurt your business’ bottom line.
If you’ve reached your credit card limit causing certain payments to not go through, this could be very damaging to your business and reputation. Knowing your spending limit is important for ensuring mandatory payments are processed successfully.
High interest rates are one reason many entrepreneurs try to stay away from credit cards. Borrowing money from the bank is sometimes better as they may offer lower interest rates. Credit cards in Canada can range anywhere from 14% to as high as 28% interest. If credit cards are the only form of financing you can use, use the one with the lowest interest rate and pay it off on time.
Payment due dates are also an important factor to consider. Why? Let’s say money is coming into your business account from sales on the first and last of the month. However your credit card is due on the 21st of every month. It is important to know to pay the amounts owed so they don’t add up, or interest kicks in. Also, knowing when payments are due helps you make better cash flow decisions.

Knowing more about your credit card can help you make better decisions in business. Whether it is knowing what fees are charged, if there are currency conversion rates, or whether you can accumulate points – it is always good to use this information to your advantage.
Some credit cards even offer 1 to 2% cash back or other personal or business incentives.
If you opt to not use credit cards as a form of financing for your business, another option could be to use
personal lines of credit or bank loans.
Personal lines of credit or bank loans are also an excellent source of financing for your small business. Usually the interest rates are much lower than a typical credit card, and most people already have a bank loan or line of credit available to them.
In case you don’t have one, the important thing to remember when applying for either a line of credit or bank loan is to ensure you have a good credit score. Without a good credit score it may be difficult to obtain any money from the banks- at least with a reasonable interest rate.
You should try to pay off your bank loan or line of credit as often as possible to ensure that you aren’t digging a hole which you can’t get out of. Remember to use only what you need, and know that you are personally responsible for that money and you will have to pay it back.
Using personal assets to obtain some financing to help you fund your small business can also be an excellent way of getting started. Use of personal assets can mean that you have a home that’s worth a few hundred thousand dollars and you want to sell to free up some capital. Or, you may want to use it to obtain a second mortgage on your home to help obtain money from the bank for business expenses. Or perhaps you have a vehicle you don’t need and want to obtain some startup money by selling it.
Maybe you don’t need to get so extreme right off the bat. Always consider all other options before you think about leveraging your home. Maybe you have a baseball card collection that is just collecting dust but might be worth something. Maybe you just need to have a garage sale to get a small amount together. Whatever it takes, your personal assets can help you get started.
When applying for any sort of funding from the banks, the government, or private investors, your personal assets can help you obtain that funding. If the investor sees you have something of value, they may not be skeptical about giving you money.
If you’ve used as much as you could from personal financing options, you may want to go and speak
with your family and friends. They may have some money they want to contribute to help you
continue building your dream. They are considered private funders but you can work with them to finalize the terms of the loan
Family and friends often agree to help you fund your business. Whether it’s through small amounts or a larger capital investment, they want you to succeed. However borrowing money from family and friends has its down side as well.

When you turn your loved ones into “lenders”, you are potentially risking your relationship with them as well as their financial situation if your business venture goes south.
A common mistake people make when borrowing money from family and friends is treating them as family and friends as opposed to treating them as a business investor. It is important to have a solid business plan to present to them as well. This will make you appear more serious about your venture, more likely to gain their confidence, and their investment. Your business plan presentation will also educate them as to what your business is about, what you plan on doing, your goals, and what you need from them to get started. It paints a clear picture.
When it comes to borrowing money from friends or family be sure to have a specific figure in mind. Sure you can accept whatever they offer, but be realistic and think about how much you need, and what you need it for – explain yourself as well.
Be sure to specify the terms when you borrow the money. What is the structure of the arrangement? Are they simply giving you money as a donation? Do they expect some equity in the company? If so, how much? Is it a loan? If so, what are the terms? Ask and answer as many questions as possible. Inform them of the risks involved by presenting them with your SWOT analysis.
When it comes to family and friends it’s better to be upfront and honest. Let them know the chances of losing their investment. It is always better let them know ahead of time and manage expectations or disappointment.
The final approach to obtaining personal financing would be by having a business partner, or multiple business partners. The same methods of obtaining personal financing mentioned above could apply to each of your business partners. Your partners can use their savings, loans, credit, and personal connections to fund your small business.
By having a business partner, or multiple partners you are dividing and minimizing risk. This means that you are not the only one responsible. Each business partner should bear equal responsibility ensuring the success of the business.
For example, you don’t want your business partner borrowing money their personal credit card and not paying it off, then borrowing money from a friend and not setting the terms in place. Any money borrowed personally could result in a business expense down the road – affecting the entire business.
Be smart about choosing business partners, and using business partner’s personal finances to fund your small business.
When you’ve exhausted your resources when it comes to obtaining any money from personal sources of financial assistance you may want to turn to private funding options.

PRIVATE SECTOR FINANCING
Private funding sources are much different than personal financing options. They are more difficult to obtain and you must do the work to initiate the process and go through with it.
Preparing yourself for funding through private sources is often recommended. Don’t just jump head first into the search. Be sure to know what private lenders look for before you start.
Many lenders will look at the “4 C’s” when evaluating you as a candidate for financing. The 4 C’s are cash flow, collateral, commitment, and character. A lender may determine how much money to lend by evaluating the first three C’s as the most important. Others may refuse you simply due to the last “character” criteria. So it is paramount that you are knowledgeable, prepared, and on top of your business to get any private lenders to say yes.
So what is cash flow?
Cash flow is the ability to repay the cash you are borrowing from the lenders. This is measured simply by using the cash flow forecast which you’ve created in your business plan.
What is collateral?
Collateral is another word for assets. Collateral is usually assets such as a home, a car, or business equipment in some cases. What you are willing to offer private lenders that will make them confident in your position to pay them back?
What is commitment?
Commitment is the amount of funding that you are personally putting into your business. As discussed earlier, 25% to 50% personal investment is recommended to show private lenders that you are indeed “committed”.
What is character?
Character isn’t whether you are a good person – instead it’s all about your credit score. Private lenders look at the score to see how good you are with money based on your past experiences. If you have a low score it may tell the investor to back away, that you aren’t a good option for them.
Keep in mind that most private lenders look at the 4 c’s, however some may only be interested in equity in your business. It is important to know which private funding source you want to apply for financing with and make a good impression with them.

How do you make a good impression with potential lenders?
Making a good impression on a lender can happen in a number of ways. The most common include:
Having a professionally written business plan
Having strong support in place through skilled management and educated staff
Showcasing your financial numbers. Make sure they are forecasted and reliable.

Offering collateral in return for investment
Having a strong credit rating and history
There are many private sector lenders and investors out there offering multiple types of financing in order to get a return on their investment. Their investment decision most of the time is based on an assessment of the potential risks and rewards.
A business plan is the key to getting funded through any private sector funding channels such as:
Through Banks
Short and Long Term Loans
Lines of Credit
Credit Cards
Through Equity Financing
Angel Investors
Venture Capitalists
Business Incubators
By Crowdfunding
Each of these channels is a great way to obtain funding for your small business startup, or even growing a business. Keep in mind that each has their own pros and cons and preferred methods of business or type or business owner.
When we think of private funding, the first two things that come to mind is “outsider investors”-such as angels or venture capitalists – and the banks. These pop up because they are the ones that are promoted the most.
You often see commercials for local banks offering business loans and lines of credit. Most people know somebody that has had one at one point or another. It just seems practical dealing with a bank that you regularly visit for your personal banking needs already.
You also see popular TV shows such as Dragons Den or Shark Tank, where venture capitalists or angel investors work with small business owners and entrepreneurs to help them succeed through an equity exchange. It pretty much works like that in real life but a little less entertaining than what you see on TV.

Going to the bank for financing
As previously mentioned, before going to a bank to present your business idea to a small business specialist, be sure to have a professionally prepared business plan on hand.
A business plan is mandatory. It is the one document your advisor will use to determine your eligibility for financing. It needs to be completed, concise, professional, and answer all of the questions they might have for you.
Typically, approaching a bank for financing will go as follows:

You will meet with a bank advisor or small business funding specialist and using your executive summary, present your business idea followed by any other points of interest.
There will then be a round of questions and answers
The advisor will ask what you are looking for in terms of money.
You will present the number, along with why you need it, how it will help you, and what you will accomplish if you are able to obtain this amount. Provide documentation to prove and show your forecast.
This will be followed up with another round of questions and answers. Most of the time the meeting will end there. After the bank advisor has had time to review your business plan and all of your financials, you may receive a call congratulating you on obtaining your loan, or a request to come back in to discuss moving forward.
Remember that a lender will look at your business plan carefully and may even ask you to put up some collateral such as a vehicle, home, or personal investments. This mostly occurs in cases of low credit scores or new business start-ups.
The bank may offer you one of the following:
Short Term Loan
Long Term Loan
Commercial Term Loan
Line of Credit
Suggest use of business credit card
Depending on how much you are asking to borrow from the bank, the financial advisor you are working with will determine the most suitable financing option.
If you are looking for a small amount, a business credit card, a line of credit, or a short term loan may be offered to you. Short term loans usually carry terms of one year for repayment and are often selected by advisors when smaller amounts are requested.
However, if you are seeking a larger sum of money, a long term loan or a commercial term loan may be offered.
Either way, the amount of money borrowed is set in a contract between you and your bank, as well as the total amount set to pay back the bank with interest and at what time
Typically, short term loans are for smaller amounts required for running day to day operations or minor business expenses. Long term loans have repayment periods greater than one year and business owners use them to purchase assets such as; buildings, land, machinery, equipment, or computers.
Most small business owners will not be qualified for commercial term loans. But, as you build your business’ reputation and financial position, commercial term loans may become available to you from

your bank. Usually commercial term loans are provided to purchase long term fixed assets such as land, buildings, or equipment. They are also used to increase working capital, invest in business expansion, or to acquire additional businesses.

Equity for financing
If you’ve seen television shows such as Dragons Den or Shark Tank, you know how Equity Financing works.
You, as the business owner or entrepreneur take your business plan and your pitch to potential investors – not necessarily on a televised set- but in an office environment. You confidently present your business idea to them.
In order to get an invitation from one of these funding investors, your business plan plays a key role to getting you in the door. A business investor will not meet with you before they’ve read your business plan or know a little bit about you.
Sending in your business plan ahead of time and obtaining an invitation will ensure that you have their attention. Now it is up to you to take your plan and present it in a way that captivates the investor, and makes them want to invest in you.
When you are presenting your plan, you must address all information that the investor wants to have before making their investment decision. Investors need to know the following:
Who are you?
What do you do?
Why do you do it?
What do you want?
Why do you want it?
What will happen if you get it?
How will they-the investor-profit from giving it to you?
Being knowledgeable about your business, knowing it inside and out, as well as the market, and overall industry will make a good impression. Any hesitation could result in you walking away without funding. Most of the time you only have one shot.

What do these investors want in return for their investment?
This form of private sector financing is called equity financing. Equity is basically your company’s worth. Private sector investors such as angel investors or venture capitalists will seek a return for their investment in your business. They set terms of owning a percentage of your company, or a share of the profits to ensure their investment is returned to them, and keeps on generating revenue.

Who are angel investors?
Angel investors are generally wealthy individuals or business owners who invest in small business and start-up companies. Their overall intent is to earn a high rate of return on their investment in your business versus another method of investing.
Most angel investors are typically successful entrepreneurs themselves, and can provide you with both financial assistance and their personal expertise. They can help you succeed in your business. It is in their best interests to help their initial investment grow.
An angel investor will hear your idea out. If they are interested, they will typically make an offer to help you fund your venture. Considering the terms they set forth are agreeable, and they can see potential success and return on their investment, an angel investor may be an aid to starting your own business.
To win over an angel investor, it is recommended to go into a meeting with the following:
Display your experience and knowledge
It is important to show the investor that you aren’t just a pretty face. Show them you have the skills and proven experience to handle your business and most importantly, their money. At this stage, it is important to network with others. Use your connections to help you obtain funding. The more people, or business owners you know, that you can feed from, the better your chances of obtaining funding are.

Follow a trend, not a fad
An investor wants to make sure that you didn’t just start this company just because you saw it somewhere else and you think you can profit from it. Instead, an investor wants to make sure you are dedicated and fully involved in this company and you want to make it succeed. If not you, than who? Angels are very smart and spot problems quickly so be sure to have the answers to potential questions that may come up.

Know your stuff
One of the worst things you can do is not have an answer prepared for an investor’s question. They don’t know your business. You are the expert – and if you don’t know, who does?
Remember to know the industry, the market, the competition, have a solid marketing and sales plan in place, and be able to demonstrate this before even being prompted.

Stay in touch and communicate
There are two reasons to stay in touch and communicate. Even if the angel isn’t interested now, they may be in the future, and you’ll already have one foot into the door. Secondly, if you do obtain funding from an angel, stay in touch and keep them updated on what is happening in the business. This may even motivate them to help you out further, investing additional funding into getting your business up and running.

Who are venture capitalists?
Venture capitalists are typically individuals or businesses which make equity investments in businesses that have forecasted a high growth potential. Typically venture capitalists take charge in the early stages of business startup or the development stage.
Venture capitalist investments are a great option for businesses that are not yet big enough to raise money through an initial public offering on the stock market, and are considered too much of a risk for angel investors or traditional bank loans.
Venture capital as a private sector funding option isn’t available to everyone, usually just to cutting edge businesses who are developing highly innovative new products and services.
A perfect example of this was Twitter.
Can you imagine the developers of Twitter going to a bank and asking for $100 million dollars to start up an online company whose purpose is to send messages around the world between users (which it didn’t even have at the time) in a set character limit? Good luck!
An angel investor might have thought the idea was crazy and too risky to invest. However, a venture capitalist-usually another business- would have the funding available to help them start-up in exchange for an equity percentage.
Wherever your private sector financing search takes you, it is important to keep your business plan customized for each avenue you navigate.

Business Incubators
You’re spending all this time searching for funding to help your small business get off the ground. But in addition to funding, you may also need advice, professional assistance, or support. Business incubators are perfect for that. Not only do many of them provide funding for small businesses and startups, but they also work with you and help your business succeed in the following ways:
Helping you with development of your business plan
Providing you with office space- usually shared
Provide technical support and administrative services
Hosting educational events, seminars, or training
Creating networking opportunities
Access to experts, advisors, lawyers and accountants
General business advice
Money being invested in your business is always a great help. What if instead of borrowing $5,000 from the bank to pay a professional to write your business plan, you could join a business incubator group and network with others who can help you develop your plan yourself, or guide you in the right

direction. Not only would you get support, but build connections which can help you operate your business better.
Business incubators are all over the place. There is most likely more than one in your city. The best way

to find a business incubator
is to do an online search. They are a great
toolbox for first time

entrepreneurs and businesses stating up.
Given the ability to network and consult with professionals, you may encounter business owners in the same or similar industries and benefit from each other’s experiences.
When it comes to the success of your business, networking is a necessary practice ensuring your business moves forward and past the hurdles we often come up against along the way.

Crowdfunding your business
Most people don’t know what crowdfunding really is. Even though it has been a funding option for many years, it has only become popular in the last few due to its prominence on the web.
Crowdfunding is simply the art of obtaining multiple investors with smaller contributions, versus just one. It is collecting financial contributions from strangers not usually connected to the financial sector. It is a combination of private sector and personal financing options.
The contributors of funding amounts into your business could be anybody and everybody – not necessarily a real investor, but someone like you who is interested in your idea and wants to help you succeed in return for a little bit of recognition or whatever else you may want to offer as an incentive.
Crowdfunding is usually done online, for free – through crowdfunding platforms such as CrowdFunding.com or Indigogo.com. Participants in online communities dedicated to this type of fundraising can help you collect donations, offer rewards, and even take pre-orders.
While crowdfunding will not work for every type of business, it is free and it can be an easy way to showcase your idea in the public, without having to launch your business.
Think of it this way- if you follow all of the steps of building the perfect crowdfunding campaign, and you launch it hoping to attract funders, but come out empty-handed– there may be a very good reason and potential customers may not be interested in your idea either. This is definitely something to consider when doing market research.
The following factors contribute to a successful crowdfunding campaign such:
How many visitors/people see your campaign?
Is your idea appealing?
Do you tell a compelling story?
Are you asking for the impossible?
Are you looking to launch too far into the future?

Simple factors such as these can play a major role in the success of your online funding campaign. It’s important to utilize all of your contacts. Network with others to help you initiate a crowdfunding campaign and to get you started towards meeting your financial goals.
If you launch a campaign asking to raise $25,000, it is recommended to invest a small percentage

yourself. You can ask friends
and family to do the same, and hopefully
others watching your

crowdfunding campaign follow suit. Every little bit is boost towards your goal of $25,000.
If you are on social media, use it to your advantage. The more people who see your crowdfunding campaign, the more likely you are to reach your funding goal. You are also able to publicize your company and your products or services before you even launch.
Your idea and your offering must be appealing to an audience before somebody will want to invest. It is important to know that not all business types will work and not all will obtain funding.
Let’s pretend that you are starting a cleaning service business. You are trying to raise funds to purchase a vacuum cleaner and a floor buffer. There is not much here to entice people to invest in you. But, you could always offer investment incentives such as, once the business is launched top investors will receive free cleaning or a discount towards on-going service. This now becomes something of interest for your funding audience.
The way crowdfunding campaigns work is by setting an amount of funding needed to make the project possible. In this case, you are asking people to invest in your business, and the amount you suggest is the total needed to start up. Be sure to make the number realistic and achievable, otherwise no interest will be shown.
Let’s recall the example of starting an ice cream parlour. You can offer free ice cream for the first month to your top investors – but the total funding needed is $1 million. This is an unrealistic goal for crowdfunding and most likely unattainable. People will not consider investing into this long shot type of business regardless of how much they like ice cream.
The same applies to your expected launch date. If you are asking for funding now, but plan on launching in five years, more often than not crowd funders won’t be interested. It is too far into the future for anybody to care. Typically, the perfect investment to launch timeframe is 6 to 12 months.
While crowdfunding campaigns work, and are popular among new business owners, it is important to remember that you are trying to attract funding by exposing your business idea to the public. You run the risk of having your idea copied and launched before you yourself can get started.
Whichever form of private sector financing options you go with-bank loans, angel investors, or crowdfunding- it is important that you know what you are asking for, and what you are willing to sacrifice in order to secure funding.
Be sure the investment offered to your small business is worth the exchange before you sign on the dotted line.

GOVERNMENT FINANCING
While in the last stage of your small business startup, you’re attempting to obtain some sort of capital investment. Whether the money you are seeking comes from personal finances, or from private sector financing, the reality is that you need money to move forward and actually launch your small business venture.
The Canadian government hands out billions of dollars in government grants, loans and financial assistance to support small business owners and entrepreneurs each year. As a Canadian, you are entitled to take advantage of some of these benefits.
A majority of small business owners aren’t aware of financing programs offered by the Canadian government. Most of the time they strictly turn to personal savings to help fund their business, or to private sector lenders such as banks and investors.
Yet there are hundreds of programs offered by your government to help you succeed in business. No matter if you are starting a new small business, expanding your current one, hiring and training employees, paying for marketing, buying land, equipment, or doing renovations, the government of Canada has programs available to assist you.
When you think of the government supporting your small business, if you are unaware of all of the options; you instantly think tax rebates. However, the government has numerous ways of helping your business obtain funding or support. See some of these ways below:
Government Grants, Financial Contributions and Assistance
Loans, Cash Advances and Loan Guarantees
Tax Refunds and Tax Credits
Wage Subsidies
Each of the above funding types could potentially be the way to go to get your small business funded by the government. It is important to know the difference between each funding type before applying. You must determine the best option for you.
As with private sector funding; when trying to obtain government financing you must be ready to present your business, pitch your idea, ask for what you need, and demonstrate how you intend on using it.
The government in this case becomes your lender. Just as with any private investor, you must meet the criteria and impress the funding agency before they will pass financial assistance onto you.
Before you begin applying to government funding programs, be sure to prepare yourself by answering the following questions:
Where are you located?
Your location, or the location of your small business matters greatly as it determines which level of government you can apply to for funding. Even though the Canadian government is

one; there are many different agencies who provide funding to small business owners. There are funding programs which are specific to cities, provinces, multiple provinces, as well as federal funding programs which apply to the entire country.

Depending on your, and your business’ location – you may only be eligible to apply for certain programs and agencies. Knowing your eligibility ahead of time could save you a lot of time and effort.

What is your business status?
Are you a new or existing business? The Canadian government prides itself on helping entrepreneurs start small businesses. At the same time, they are the ones who have the most difficulty obtaining funding. It is important to seek funding from agencies which specialize in helping either startups or existing entrepreneurs, and to know which programs to apply to.

If you are starting a small business, you may be denied funding if you are applying to agencies that only fund existing businesses. Likewise, you may be denied funding if you are an existing business applying to startup business funding programs.

Knowing the status of your business, and specifics (e.g. revenue and number of employees etc.) will help you narrow your search to funding programs which you and your small business are actually eligible for.

Do you meet certain demographic criteria that could help you obtain funding?
Specific details people don’t typically consider are very important here. Details such as your age or gender, or whether you have a male or female business partner may all be evaluated. Are you new immigrant, an aboriginal, or in business with one? There are many government programs designed specifically for business owners that fit this criteria.

What industry are you in?
The industry your small business is in matters as much as the location of your business when searching and applying for funding programs. As with the location criteria; knowing which industry you are in further narrows down your search for funding programs. Not all funding agencies provide funding for every industry and for every type of business.

Being able to identify the industry you are in will help you narrow your search to more relevant funding agencies.

In fact, it is very important to be general in terms of your industry specification as your small business may often fit into multiple industries as classified by the Canadian government.

For example, if you own a retail clothing store, the industry you are in and the funding agencies you would be seeking assistance from would support the “Retail Trade / Services Industry”.
However, depending on your business, the funding purpose, and your business vision, you may

also seek assistance from the “Creative Services and Media Industry”, or the “Transportation, Warehousing and Distribution Industry”.

This doesn’t always mean that there will be programs to help you. But your chances of obtaining funding from the Canadian government increase if you apply to more than one funding agency for your small business. It is important to think of the big picture and outside of the box.

How will the funds you seek be used?
Knowing what you are seeking the funds or assistance for can also help you obtain funding much easier. It will narrow your search to specific funding programs which specifically help small businesses seeking funding for that purpose. Some of the funding purposes to keep in mind include; hiring, land/leasehold/building, equipment, inventory, technology, marketing, r&d and working capital.
One mistake that business owners make is that when they apply for funding, they are too specific as to what they are looking for when it comes to their funding purpose. Be sure to be general in your search but ensure you actually need it before applying.
If you are starting a small retail store, and you need help purchasing inventory, you could also benefit from programs which offer assistance for hiring and training staff, marketing, and even working capital. Don’t just apply to one program from one agency for one specific purpose
What is your personal credit status?
Your personal credit status matters. If you are going to the bank to open a personal line of credit, applying for a business credit card, or trying to obtain funding from private lenders or the Canadian government – having good credit is always important.

Having good credit shows potential lenders your ability to pay back the money. In most cases, having a bad credit score will turn lenders away. Some may still want to work with you and provide financial assistance but you may have to prove you have suitable collateral.

What other debt do you have and who are your creditors?
As per the credit question above, all lenders will want to know what kind of debt you have and who your creditors are. By knowing how you have borrowed money in the past, they can assess the risk of their investment in your business.

Most people have a car loan or mortgage. This type of debt doesn’t often seem like an issue. Instead it may be seen as an asset which can be used as collateral in the event of an emergency. Bad debts include maxed out credit cards, exhausted lines of credit, or owing money to multiple places. This could result in you being denied business grants, loans or financial assistance from the government. It is important to know your debt to equity ratio.

Do you have any assets or collateral to support the business?
As mentioned in the credit status question, having assets which can be used as collateral to support your small business and application to government funding programs is important. Common assets include your home, vehicle, investments, equipment, and anything else that can be quickly turned into cash.
If you have bad credit you may be denied funding by the government. If your credit is fair-but not great just yet- you may need to provide collateral upfront before you can apply for funding.
Knowing about these questions and being able to prepare your answers before conducting your funding search could save you a lot of time, money, and headaches. Be sure to understand how your credit, your financial need, your industry, and business location factor into helping you find funding programs, apply for government funding, and obtain the money you need.

The basic starting point for searching for government funding starts with figuring out what you need funding for – and if you need it at all. Remember, just because it is an option doesn’t always mean that it should be opted for. Depending on your business and your financial needs, funding can be obtained by the government for a number of purposes.
What exactly do you need money or assistance for, and how much?
This is the starting point when searching for programs offered by the Canadian government. Knowing exactly how much money you need – which you have figured out by completing your business plan- will help you determine your path.

It is very important to remember that you’re able to apply to multiple funding programs for multiple funding purposes. As a small business, especially if you are just starting up, you may need funding for a number of things. Be sure to take each of those “financial needs” and consider them all before you begin your funding search.

Your chances of obtaining a grant, loan or any government support, greatly increase if you apply for more than one purpose, and to more than one funding program.

Your business’ financial needs are not set in stone, and they change as your business moves forward. Certain needs may come up that initially escaped you and you did not plan for. Government funding programs may be able to assist you with these surprise expenses.

Consider all of the potential purposes you need funding for, and for which the government offers assistance-a handful of these include:
Equipment
Hiring
Land/Leasehold/Buildings
Inventory
Technology
Marketing
Product Development
Working capital

When we talk about applying for multiple financial needs, this doesn’t mean applying to just one funding agency to meet all of your financial needs. An agency that provides funding for businesses in need of marketing or advertising will not be able to lend you money for purchasing equipment. The Canadian government has multiple funding agencies that specialize in each of the funding needs or a combination of needs. Be sure to research the appropriate agencies before sending in your applications.
The need for purchasing equipment is one that comes up often for new business start-ups. Equipment doesn’t necessarily mean big trucks, or heavy machinery, but it can be cash registers for a retail store, or computers, chairs, and desks for an office.
When applying to funding agencies that specialize in providing funding for business equipment funding, it is important to know how much to ask for. Having a well researched business plan will help you show the potential funding agency how much the equipment you intend on purchasing will cost, how much you need them to cover, and how it will affect your business.
In addition to purchasing equipment, start-up and expanding business owners may require funding to help purchase land, make leasehold improvements or help with renting or purchasing a building.
This may seem out of reach for small business owners, however it is very common for the Canadian government to help businesses in this manner. More often than not, this need is supported by a partial contribution or a low interest loan. You can learn more about the different types of funding a little later.
You can’t have a business without some sort of inventory. Asking the government to help you start up with inventory is another funding category you may want to consider.
Inventory can include purchasing products to fill your retail store, help producing your own widgets, or assistance completing large purchase orders which you would be unable to finance on your own.
Hiring and training staff is another common funding need small business owner’s look seek
government support for. This type of assistance can be financial backing, professional counseling, and business development courses. These courses help to educate you and your staff in order to make your business grow.
Once you have the location, staff, equipment, and the inventory, you may need to put some marketing
or advertising funds into attracting customers. The government of Canada has specific programs to

help you as a small business owner pay for your marketing and advertising efforts. Be specific as to how you intend on promoting your business, how much money you need to get started, and how financial assistance from the government will help you in these pursuits. Have a clear marketing plan prepared.
Once you are growing and moving along as expected, you may want to obtain funding from the government for product development and R&D or funds to help with introducing a new technology into your business. There are a number of funding agencies specializing each of these. Having a section in your business plan showing how these enhancements could help grow your business can help you obtain the funding you need.
Another important funding need is working capital. Having enough money to continue your day to day operations is crucial to its very survival. Once your business loans or investments have been spent on rent, payroll, inventory, and marketing, you still need additional funds to run your business. Applying to the government for working capital assistance and funding programs which can help you obtain that, should be your next step.
Now you know some of the criteria for applying to business grants offered by the Canadian government. You also know what kind of help you can get and for what. The next thing you need to know is what kind of help the government can actually provide and the meaning of each.
Remember that financial assistance can come in various forms from the government of Canada. Some may be right for you, while others may be harmful if you aren’t sure how to manage them. Be sure to understand each of the funding program types. Know which ones you should pursue and which ones you should disregard.
Funding can depend on the size and the nature of your business, meaning that your small business may be eligible for funding in various forms. Whether the funding you obtain is in the form of grants, loans, tax refunds or any other contribution, knowing their differences can help you make an informed decision for the sake of your small business.

Government grants, financial contributions and assistance
Government grants, financial contributions, and assistance is one of the most sought after types of funding from the Canadian government.
Business owners are often misguided thinking that a government grant is simply free money.
Government grants do vary in their terms though. The Canadian government hands out billions of dollars in grant funding support to small businesses just like yours.
Keeping it simple, government grants can be split into three main categories; grants and subsidies, equity financing, and conditionally repayable contributions.

Grants and subsidies
Grants and subsidies offered by the government may also be referred to as one time and renewable grants. Government grant programs are often the most difficult funding programs to obtain money from, however the money which you do receive doesn’t need to be paid back. The money is yours to keep and to use as you wish under the terms of the grant.
Keep in mind that if you are successful in obtaining a grant, you must use it as per the terms of the grant agreement. Otherwise you may be penalized and may have to repay the entire grant back. A good example of this is winning a grant in order to purchase new equipment. You cannot take any leftover portion from this grant and spend it on your advertising needs, unless the funding agency permits you to do so.
The reason for this is that the Canadian government has different agencies who fund different purposes and industries. It is wholly up to them where their grant money is invested.
Again, grants and subsidies don’t just mean free money. Even though it is given to you as a small business owner under strict guidelines, grants don’t appear as a check with the amount you wanted filled in. Instead, the funding agency may ask you to contribute an amount to your business. They will then match that amount in the form of a grant, or “free non-repayable money”.
The typical government grant or subsidy can range from $1,500 to well over $500,000 for a small business owner in Canada who meets the criteria of the funding agency. This doesn’t mean that if you are starting a nail salon that you should be asking for $500,000 and that you will get that amount. It just means that the average business owner looking to obtain funding in the form of a grant, could potentially receive an amount in that range if all criteria is met.

Conditionally repayable contributions
Not all grants are non-repayable. In certain situations, the government acts as a venture capitalist and provides you with conditionally repayable contributions. The government wants to see you succeed, so in some circumstances they may ask that once your small business is profitable, you repay the contribution initially invested under specific terms.
Repayable contribution programs offer numerous means of accessing funds for small businesses. Some programs take the form of interest-free, unsecured repayable loans, where all or part of the loan is repayable or conditionally repayable depending on the terms and conditions of the contribution agreement.
Other programs take up to 50% of eligible costs for new enterprises, modernization, or expansion projects. These costs include start-up and capital costs. Furthermore, any related operational costs, involving activities such as job skills training, industry related courses, marketing, product innovation, productivity enhancement, or quality assurance could meet the criteria for eligibility to receive up to 75% financing or to a contribution limit of up to $500,000.

The government may provide funds through partnership programs to encourage cooperation between unions and employers. There are some programs that showcase the government’s commitment to specific industries. These programs assist by helping with lowering costs, improving productivity, efficiency, and product diversity. Other repayable conditional programs exist to ensure the continuance of strategic R&D being undertaken by national aerospace and defense companies.
The conditionally repayable contribution you may see if eligible depends on your type of business and the funding need – however the typical contribution ranges from $10,000 to $500,000.

Equity financing
When your small business start-up requires much more funding than a typical grant can offer, one of the options you have is to apply for equity financing. Much like a venture capitalist, the Canadian government can offer anywhere from $250,000 to well over $10 million in funding in exchange for equity in your business.
The difference between government equity financing and venture capitalist equity financing is that the Canadian government cares more about the economic stimulus that may occur from your business and their investment, as opposed to making a quick profit each quarter- the main concern of the venture capitalist.
Equity financing from the government should be well understood before proceeding with applications. Speaking to funding program coordinators to understand the terms is also very helpful.

Government support and assistance
Government assistance doesn’t always need to come in the form of dollar signs. In many cases, the best type of assistance the Canadian government can offer you as an entrepreneur is professional support and counselling.
Much like a business incubator group, there are certain government agencies whose sole purpose is to help small businesses get up and running. These programs can assist with start-up, planning and business plan support, on-going business counseling and mentorship programs.
These types of programs exist to provide assistance to business with assessing, planning, and
implementing solutions that correspond to their current development stages of their individual
businesses. Many tools are also available to assist business owners with building a stronger foundation.
When it comes to government funding for small businesses, grants and subsidies are often the most difficult to obtain, thus people turn to loans, cash advances, and loan guarantees.

Loans, cash advances and guarantees
While a government grant that is non repayable is the ideal funding scenario, government loans by comparison are more common. Your chances of obtaining a government loan are much greater than your chances of receiving a government grant.

Government loans can be split into two main categories-low interest or government backed loans.
no interest loans, and

Low interest and no interest loans
Low interest or no interest loans offered by the Canadian government are exactly what they sound like; low interest or no interest.
These types of loans, depending on your business and financial needs range in the amount of $1,500 to well over $10 million. Most of the time, these loans are much better than those offered by banks
Government loans may be interest-free, or offer competitive rates. In certain conditions, your loan may even be “non-repayable”, which essentially means it is another form of grant. Government loans carry additional advantages. They’re more likely to be unsecured – that is, you don’t need to put up collateral against the loan.
You’ll find loans under a variety of programs, designated for different industries, different geographical regions, and even loans intended specifically for women and young entrepreneurs.
The Canada Small Business Financing Program may be able to help you obtain up to $500,000 by sharing with your financial institution some of the loan’s risk- a practice it employs for the purpose of encouraging financial institutions to increase loan amounts they make available to small businesses.
Much of the success you may have heard small businesses have had in obtaining funding from the Canadian government will be from low interest or no interest loans.

Government guaranteed loans
If you’ve ever been denied a bank loan then you should consider a government guaranteed, or government backed loan. Government guaranteed loans are often for those business owners and entrepreneurs who are seen as high risk by the banks.
The unfortunate truth is that not all small businesses succeed. When a new business fails, the bank gets stuck with the bad loan – which translates to a loss for them. This is why banks turn away so many start- up businesses that they feel may not succeed.
On the other hand, a government guaranteed or government backed loan is simply like having your Dad co-sign for your first car loan. It is a way to tell the banks to trust you, and that if you can’t afford to pay back your loan, your co-signer (your Dad) will ensure payments are made. In this case, the

government is your co-signer and -whether in part or in full- the financial institution may be able to provide you with the funding. Keep in mind these are the same banks you would be hearing a “NO” from, so be sure to keep the relationship above board in all of your dealings.
Government loans are much easier to obtain than grants. However, they have terms and strict criteria which must be met before you obtain such funding. It is always important to remember that the money in most cases has to be paid back, and that each funding agency has strict terms for your loan falls. These terms must be followed to the letter.

Tax refunds and tax credits
Aside from applying for financial assistance in the form of government grants and loans, the Canadian government also supports its small business owners and entrepreneurs through tax refunds and tax credits.
Obtaining money is obviously your main priority, especially when starting out in business. The money can be used to help you start up, grow, and expand through various purposes. It’s good to know that certain benefits of tax refunds and tax credits can be just as helpful at keeping money in your pocket.
The Canadian government offers a number of different funding programs which help decrease your small business tax burden – allowing you to keep more of your profits to better run your business. Other government funding programs are in place to help lower the tax rate for small businesses, award tax credits for hiring apprentices, and help provide you with investment tax credits for qualified R&D expenditures.
In other words, the government of Canada has a number of programs which can help you pay less taxes and keep more of your money. In many cases this means not having to pay for certain things and getting a sizeable tax return.
Tax returns and tax credits are very beneficial to startup businesses, however not all businesses, industries, regions are eligible. Be sure to research more about your specific industry and business type before applying for certain tax breaks.
Another assistance program that may help your small business with a contribution would be the wage subsidies program offered by the Canadian government.

Wage subsidies
A wage subsidy program is another assistance program offered by the Canadian government. The wage subsidies program can be split into two different sections; one for employers or business owners, the other for hiring employees.
As a business owner, a wage subsidy program is designed to help you pay yourself while you are unemployed and are in the process of starting your own business. This is great for people who want to

quit their full time job to focus on starting their own business. This specific wage subsidy program can help you cover your salary and living expenses while your business takes off.
Once you are an existing small business, other wage subsidy programs are available to help you find and hire people. The government either covers an employee’s full wage, or a part of it. Often, the employees under this type of program are disabled, handicapped, or have less experience and skills. However, wage subsidy programs also exist for youth, the elderly, new immigrants, women, and single moms.
To take advantage of the wage subsidy programs, you must be a registered business with a legal business name and number. You must also have been operating for at least one year. To participate in the wage subsidy program, you must also have a position to fill which is normally part of your ongoing business operations and offer a full time position with a minimum of 35 hours per week, or a long term employment contract.
Other factors in your eligibility for wage subsidy programs include your ability to pay a reasonable and competitive wage, as well as to confirm that the employees being hired under the program wouldn’t otherwise be hired.
If you are eligible as a small business owner for wage subsidy programs, it is a great way to hire help and have the government pay in partially or entirely on your behalf.

Applying to funding programs
As a small business owner who has exhausted all of their funding searches and still comes up empty, other government funding options are out there. Whether you apply to the government of Canada for grants, loans, tax breaks, and wage subsidy programs, or for business mentoring and support – knowing how to apply is the key to obtaining funding and assistance.
When it comes to searching for funding from the government, most small business owners cringe at the idea of having to apply for these programs. It just seems so difficult, confusing and time consuming. And in reality, it can be all those things if you don’t know what you are doing.
As a small business owner you must be prepared to do continuous research into all possible funding programs at the local, provincial, and federal levels. You should aim to apply for more than one program, on multiple occasions.
Once you have located what seems to be an ideal government grant or loan program you can stop looking, right? Wrong! This is actually the jumping off point of your search.
Unless your small business financial needs have been met with funding support, your search for funding doesn’t stop. You have to consider the fact that even if it seems you’ve found the perfect funding program, and you’ve met every single point on the funding agency’s criteria, it still doesn’t mean you will obtain that funding.

This means your search for a funding program continues. It is recommended to look for multiple funding programs, for different funding purposes, and be very general in your search. Being too specific as to what you need funding for may stall you in your search for funding programs. But also, being too general result in the same. You, as a business owner must conduct your own research to find and understand the balance between the two.
Remember that not every form of available government support will cover everything small business owners need assistance with. It is always a good idea to try and cover all of your needs by going after more than one funding program. This, at times means different agencies – or maybe some agencies offer funding for multiple purposes.

Tips to help you in your search for funding programs
Finding the programs which you and your small business may be eligible for is a challenging process. It is the part of locating government funding that often discourages business owners from even trying. However, to help you in your search, some tips have been compiled from past success stories. Following these tips increases your chances of finding appropriate funding programs for your small business:
Find a list of government programs and determine which meet your criteria
A simple search in our grants and loans database can help you determine which programs you may or may not be eligible for. The Canadian government website also has resources which can help you in your search. Your first step is to read about the available programs and focus on the ones which match your business needs and criteria.

Contact the funding agency
Getting in touch with somebody at the funding agency before you send in your application is often a good way to get your foot in the door. It is a great way to get your name seen by somebody who may be the decision-maker in the funding approval process – if they recall you and your business, this familiarity may help when it comes to receiving the final stamp of approval. Make a call or send an email asking for eligibility criteria, program details, and inquire about specific personnel to contact.

Monitor the funding programs website and social media
One way to stay updated with the details of any funding program is to stay connected- follow their website and social media profiles. Staying in the loop will ensure that you are able to apply at the right time and with the latest information.

Contact past success stories
Most funding agencies and funding programs share success stories or profile their grant and loan recipients right on their websites. It is often a good idea to get in touch with these clients who have experienced. Be polite and respectful- let them know who you are, why you are calling and how you obtained their information. It is a good idea to seek advice and ask for any

tips they have used to help them obtain funding.

Following these simple tips will help you get ahead of the programs and find the specific programs you may be eligible for.
Once you are confident that you have found the appropriate funding programs, there are certain things you can do to ensure success in your approval and application process.

Tips to help you in your funding application process
Don’t ever give up
Most business owners that apply for funding and fail have done so for a number of reasons. They’ve made errors like applying to the wrong agency, neglecting to have a business plan, filling out applications incorrectly, or not meeting the fund’s criteria. However, some simply fail because the agency doesn’t want to hand money to them for whatever reasons they see fit. The important thing is to not give up.

Streamline and adapt your process
Once you’ve completed a funding application, you can learn from your mistakes and streamline the application process. By doing so, you will be able to fill out full applications much faster and eventually be able to apply to multiple funding programs quicker.

Outline the funding use
One of the main points the funding agencies and the program coordinators want to see in your application is how the funding will be used, and how it will benefit your small business. Be sure to be specific in your application, and ensure that you’ve met the criteria of the funding agency.

Know when to get help
If you’ve tried, and tried, and tried again- you only receive refusals and rejection letters-get some help. Maybe some key thing is missing in your application process. Perhaps a business consultant, an accountant, or business advisor may be able to help you with your application process. One thing to remember when you are asking for funding is to be specific and to be realistic. Don’t ask for a million dollars for a business that will never make that much.

Stay in touch
Whether you obtain funding, or are refused – it doesn’t mean you should sever all ties there. If you are successful in obtaining funding from that agency, stay in touch and let the advisors at the program know how much it means to you, how you used the funds, and how you benefitted from them. Staying in touch can help you obtain additional funding down the road from the same agency with a relationship already in place.

These are simple tips – common sense really. The more information you have and the more familiar you are with government funding and the application process, the greater your chances of approval and ultimately success.
Funding for your business is a necessity to move forward. If you lack a capital investment- be it personal, borrowed or government backed – your business may see limited growth and eventual failure. The most successful entrepreneurs educate themselves on small business financing options, the cash flow process, and knowing the numbers.
Be patient, be realistic and be optimistic – follow the guidelines and never give up.

AgriStability Program Handbook
Effective for program years commencing 2023 A federal-provincial-territorial initiative
WHOLE FARM
PROTECTION
AGRISTABILITY
AFFORDABLE COVERAGE
ACCESS TO OTHER CREDIT OPTIONS AND PROGRAMS
GIVES YOU
PAYMENTS IN TIME OF FINANCIAL DISTRESS
UNIQUE COVERAGE
P: 1.877.899.2372
F: 403.782.8348 or 1.855.700.2372
E: [email protected] W: www.afsc.ca
Contents
What is AgriStability? 1 Why choose AgriStability? 1 What do the changes to Sustainable CAP AgriStability include? 1 Program participation 2
Joining the program 2 General eligibility requirements 3 Deadlines 4 Annual filing requirements 5 How to file program forms 6 Program fees 7 Opting out of the program 8
How the program works 9 Production margins 9 Allowable income and expenses 10 New for 2023 11 Changes in AgriStability 2020 11 Structural change 12 Calculation of program benefits 13
Interim benefit calculation 14 Late participation 15 Revisions and amendments 15 Appeals 16 Other BRM programs and AFSC products 17
The Sustainable Canadian Agricultural Partnership (Sustainable CAP) Agreement, Sustainable CAP AgriStability Program Guidelines, and this handbook, determine how Sustainable CAP AgriStability is administered in Alberta. Any inconsistencies between this handbook and the guidelines shall be resolved in favour of the
guidelines. Definitions for program terms found in this handbook are located in the program guidelines at www.afsc.ca.
What is AgriStability?
AgriStability is one program in a suite of Business Risk Management (BRM) Programs that governments offer to help producers manage significant risks. Other programs in the suite include AgriInvest, AgriInsurance and AgriRecovery.
The purpose of the AgriStability Program is to provide Canadian agricultural producers with an ongoing whole-farm risk management tool that provides protection against large declines in farming income that threaten the viability of their farm and are beyond their capacity to manage.
Why choose AgriStability?
• Whole farm protection – AgriStability protects your farm income based on all of your commodities.
• Unique coverage – Your coverage is based on your own farm history. • Payments in times of financial distress – Provides assistance to producers who experience margin declines greater than 30 per cent due to production loss, adverse market conditions and increased costs.
• Access to other credit options and programs – AgriStability can give you access to credit options such as the Advance Payments Program (APP), which provides cash advances through various farm commodity organizations.
• Affordable coverage – AgriStability is a low cost risk management program available to all producers.
What do the changes to Sustainable CAP AgriStability include?
The AgriStability compensation rate has increased to 80 per cent or 80 cents per dollar of support from the previous 70 per cent rate as a result of the new Sustainable Canadian Agricultural Partnership (Sustainable CAP) agreement, commencing April 1, 2023.
1
Program participation
Joining the program
To become a participant in the program, submit an Application for Fee Notice to AFSC by the enrolment notice deadline, April 30 of the program year you wish to participate. Upon notifying AFSC of the intention to participate, new participants will be asked for production information so that an Enrolment/Fee Notice can be
issued. Upon receiving the fee notice, any producers who choose to not participate will be required to submit an Opt Out Form prior to the deadline.
To maintain eligibility in the program, existing participants are required to pay the fees and submit program information by the prescribed deadlines. For additional information refer to the deadlines section of this handbook.
AFSC now has a projected reference margin calculator available. This tool allows participants to more accurately estimate what their reference margin will be for a given program year. To access the calculator, visit our website at www.afsc.ca.
Simplified participation
Simplified participation includes reduced information requirements for both the issuance of fees and the calculation of benefits for new participants.
Fees will be calculated using industry benchmarks and projected current year production unless a contribution reference margin is available to AFSC.
Producers who have not participated in AgriStability for 4 years preceding the program year have the option to provide either 3 or 5 years of tax and accrual information to create their reference margin.
AFSC will continue to use 5 years to create reference margins whenever such information is available.
AFSC considers a producer to have participated in the program if they have met all of the eligibility requirements as listed in the general eligibility requirements section of this handbook.
Related Resources: AFSC Technical Information Circular #10 – Simplified Participation (see www.afsc.ca)
2
General eligibility requirements
All of the following conditions must be met to be eligible for a program year:
a. Carried on the business of farming in Canada
b. Conducted a minimum of six consecutive months of farming activity c. Completed a production cycle (see below)
d. Reported farming income (loss) for income tax purposes to the Canada Revenue Agency (CRA)
e. Met all program requirements by the deadlines established by AFSC
A production cycle includes one or more of the following activities:
• The growing and harvesting of a crop
• The process of rearing livestock, such as the calving of cows or farrowing of sows
• The purchase and/or sale of livestock in the case of feeding and finishing enterprises
Other eligibility information
Eligible participants include individuals farming as sole proprietors or within a partnership, corporations, trusts, co-operatives, communal organizations and limited partnerships.
Landlords, including crop and livestock production share, are only eligible to the extent that they share proportionately in both the income and expenses, as a joint venture arrangement.
Participants are eligible to participate in the program based on the province of main farmstead. Participants may participate in the program in one province only.
Status Indians who carry on the business of farming on a reserve in Canada and who are exempt under the federal Indian Act from filing income tax returns are considered eligible provided they submit information that would have otherwise been reported for tax purposes for the program year and the reference years based on the requirements of the Income Tax Act.
Related Resources: AgriStability Program Guidelines – Part 1 Eligibility
(see www.afsc.ca)
3
Deadlines
APRIL
30
SEPT
Deadline for enrolment request for the program year Deadline to opt out of the program1
Deadline to pay the program fee, without penalty1
30 Deadline to submit program forms, without penalty2
DEC
31Deadline to pay program fee, with 20% penalty3
Deadline to submit program forms, with penalty4
1 The later of 30 days after the issuance of the Enrolment/Fee Notice or April 30. 2 Program forms submitted after the September 30th deadline will have their final AgriStability benefit reduced by $500 per month to a maximum of $1,500. If no benefit is calculated, no penalty will be applied.
3 The later of 60 days after the issuance of the Enrolment/Fee Notice or December 31. 4 Participants who submit their supplementary forms more than three (3) months past the September 30 deadline will become ineligible for that program year.
Program forms include both supplementary forms and tax information – see annual filing requirements section for additional information.
Other deadline information
If a participant does not pay the program fee by December 31 (or 60 days after the issuance of their Enrolment/Fee Notice, whichever is later), they will become ineligible to participate in that program year. Any outstanding fees along with the 20 per cent penalty are still payable.
Forms and fee payments must be received by AFSC by the deadline, or postmarked on or before that date. If the deadline is on a Saturday, Sunday or statutory holiday, the participant has until next business day to meet the deadline.
Deadline requirements may be waived under extenuating circumstances upon written request of the participant. Requests should be directed to the Manager of Processing and Verification.
4
Annual filing requirements
For each program year, a participant must submit completed supplementary forms and tax information to AFSC by the deadline. For more information on how to complete the supplementary forms refer to the Supplementary Forms Guide at www.afsc.ca.
Individuals:
• T1163 Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities.
• T1163’s filed to the CRA will be forwarded to AFSC.
Corporations:
• T2 Schedule 1 – as filed to the CRA
• Full financial statements including notes • Statement A – Alberta Corporations/Co-operatives/ Other Entities*
• Other tax documents – as requested by AFSC
*Note: The Statement A Net farming income (loss), line 9946, must match the Net income (loss) for income tax purposes. An Accrual to Tax Worksheet may also be requested.
Information for accrual filers
IMPORTANT! Tax information must be supplied on a Statement A for all corporations.
Participants who file their taxes to the CRA on the accrual basis are still required to file Supplementary Forms to AFSC.
• Completed Schedules 2 and 3 are required at a minimum and, if necessary, any information that may be applicable for Schedule 1a, 1b and 1c for amounts that are not included in the financial statement accruals.
• Inventory changes related to breeding stock included on Schedule 3 will be adjusted to reflect the hybrid inventory adjustment methodology, i.e. change in quantity multiplied by price at the end of the year.
• The participant may be asked to provide inventory working papers to support the amounts reported as opening and closing inventory on their financial statements.
DID YOU KNOW?
Participants must submit their tax information to AFSC using the same method as filed to CRA (i.e. cash basis or accrual basis). Information on how to allocate cash basis T2 Schedule 1 adjustments can be found on the Corporate Accrual to Tax Conversion Worksheet – now available on our website at www.afsc.ca.
5
How to file program forms
AFSC has several ways to submit program information:
Email:
[email protected]
In person:
Information can be dropped off at any AFSC branch office
Fax:
403.782.8348 or
1.855.700.AFSC (2372)
Mail:
5718 56 Avenue
Lacombe, AB T4L 1B1
File your forms online with AFSC Connect
Producers can complete their supplementary forms online from any device, while corporations can complete their tax and supplementary forms.
Once logged in, you can chat online with AFSC if you have questions about AFSC Connect or your AFSC programs.
GO GREEN WITH AFSC CONNECT
AFSC Connect allows you the flexibility to manage your business online – when it is convenient for you.
Get money faster – sign up for
direct deposit
Reduce delays
by completing
your supplementary forms online
View, print and download your statements from the past three years
The online checklist ensures we have
everything needed to process your request
6
Program fees
The annual program fee is calculated at 0.45 per cent of the contribution reference margin multiplied by 70 per cent. This results in an approximate fee of $315 for every $100,000 of reference margin. The minimum AgriStability program fee is $45. In addition to the program fee, an administrative cost share (ACS) fee of $55 is payable to cover a portion of program administrative costs.
Program year fee example:
Year 1 Year 2 Year 3 Year 4 Year 5
Adjusted Production Margins $100,000 $117,000 $130,000 $113,000 $95,000 Selected Selected High Selected Low
✓ ✓ 🗴 ✓ 🗴
Contribution Reference Margin $110,000 = ($100,000 + $117,000 + $113,000)/3 Program Fee = 0.45% 0.45%
Subtotal 495.00
Coverage x 70%
AgriStability Program Fee 346.50
ACS Fee 55.00
Total Program Year Fees
$401.50

DID YOU KNOW?
Fees are based on reference margin information from a program year that is two years prior to the current year, known as the contribution reference margin. For example, 2023 program year fees are calculated using 2021 reference margin information
7
Opting out of the program
A participant may opt out of the program upon written notice to AFSC. Written notice must be received by the enrolment notice deadline, April 30 of the program year you wish to opt out. A participant will be ineligible for benefits for the program year in which the opt out occurs.
Opt out forms are available on our website at www.afsc.ca.
IMPORTANT!
If a participant does not opt out by the April 30
enrolment deadline, they will still be required to pay
all fees and applicable penalties for that program year.
Opting out and how that impacts other programs
AFSC collects and submits corporate tax data to Agriculture and Agri-Food Canada (AAFC) for purposes of the AgriInvest Program. Corporations that still wish to participate in the AgriInvest Program must continue to submit their tax information to AFSC by the applicable deadline. If a participant is participating in AgriInvest only, then they should clearly write “AgriInvest Only” on the top of the first page of their Statement A. There is no requirement to submit financial statements or T2 Schedule 1.
Individuals who file their taxes to the CRA on a T1163 Statement A will have their information sent to the AgriInvest Administration directly from the CRA.
Opting out of AgriStability may affect eligibility for the Advance Payments Program (APP), also known as the Cash Advance Program; check with your APP administrator prior to opting out.
8
How the program works
Production margins
AgriStability Program benefits are calculated by comparing a participant’s current year financial information to historical years to determine if there has been a shortfall.
For all years, whether current or historical, a production margin is calculated using tax and Supplementary Form information supplied by the participant. AgriStability allowable income less allowable expenses as reported for tax is the starting point. This net margin, which is usually cash basis, is adjusted to include accrual information from the supplementary forms and if applicable, other margin adjustments as determined by the administrator.
Supplementary
Form
Income Tax Information
Information Other adjustments,
if applicable
Production
Margin
Supplementary form adjustments include accounts receivable and deferred income, accounts payable, purchased inputs and crop and livestock inventories. Crop and livestock inventories are valued using hybrid inventory valuation method.
Related Resources: AFSC Technical Information Circular #4 – Hybrid Accrual Margins, #5 – Stub Periods and #8 – Inventory Valuation (see www.afsc.ca)
WHAT BEGINNING FARMERS NEED TO KNOW…
AFSC may establish production margins based on a participant’s farming operation for any of the three years immediately prior to the program year by multiplying the farm’s productive units by industry average income/ expense information.
9
Allowable income and expenses
Allowable income is generally limited to the sale of agricultural commodities and production insurance payments. Allowable expense items are generally limited to input costs directly related to the production of agricultural commodities. The income and expenses, as reported to CRA, that are considered allowable for the program include, but are not limited to, the following:
Allowable Income
• Agricultural commodity sales • AgriInsurance proceeds
• Canadian Food Inspection Agency (CFIA)
• Commodity future gains
• Custom feeding*
• Insurance and other proceeds for allowable income and expense items
• Rebates for allowable expenses • Specified program payments** • Wildlife damage compensation
Allowable Expenses
• Agricultural commodity purchases • AgriInsurance premiums • Commissions and levies (related to commodity sales)
• Commodity future losses/ transaction fees
• Containers and twine
• Custom feeding*
• Electricity
• Fertilizer and lime
• Freight and shipping (to and from market)
• Heating fuel
• Machinery (gasoline, diesel fuel, oil)
• Minerals and salts
• Other insurance/premiums for allowable
income and expense items
• Pesticides
• Point of sale adjustments • Prepared feed
• Salaries (arms length as defined by CRA)
• Storage/drying
• Veterinary fees, medicine, breeding fees
Related Resources: AFSC Technical Information Circular #3 – Allowable vs Non Allowable and Part 4 of the AgriStability Program Guidelines (see www.afsc.ca)
*Custom feedlot income and expenses are allowable if the feedlot makes an appreciable contribution to the growth and maturity of the livestock. For example in the case of cattle, the animals must be fed for more than 60 days or have an average gain of at least 90 kgs (200 lbs).
**To determine whether or not to include a Program payment in allowable income in the Program Year and/or Reference Period, Participants reporting tax in Alberta should refer to the Canada Revenue Agency’s RC4060 Farming Income and the AgriStability and AgriInvest Program Guide.
10
NEW for 2023
The AgriStability compensation rate has increased to 80 per cent or 80 cents per dollar of support from the previous 70 per cent rate as a result of the new Sustainable Canadian Agricultural Partnership (Sustainable CAP) agreement, commencing April 1, 2023.
What hasn’t changed is the benefit trigger point or how fees are calculated – benefits still begin to trigger at 70 per cent of the reference margin and it still costs only $315 for every $100,000 of reference margin support. Losses in excess of 30 per cent are now compensated at $0.80 for every dollar of decline.
Changes in AgriStability 2020
1. The reference margin limit was removed
2. Indemnity payments from private insurance programs that are fully producer funded are non-allowable in the program year margin and allowable in the reference margin where they relate to:
a. price or revenue insurance associated with the sale of allowable commodities
b. price insurance associated with the purchase of allowable expenses
c. production insurance covering the production of allowable commodities (e.g. private hail insurance)
d. other income insurance, such as margin-based or guaranteed minimum income insurance
Indemnity payments from private insurance programs not outlined above, that compensate participants for the replacement of eligible agricultural commodities or allowable expense items, are included as allowable income in both the program year margin and the reference margin (e.g. payments for inputs destroyed by fire).
11
Structural change
Structural change assessments are a routine part of the annual program year benefit calculation. If applied, structural change adjustments are intended to adjust historical production margins to reflect changes in a participant’s current farming operation. Typically these adjustments result from a change in the size of the farm or the commodities being produced. In situations where productive units have not had a material change, structural change adjustments will not be applied.
As an example: Producer A normally seeds 1,000 acres but has decided to rent additional land and now seeds 2,000 acres. The income and expense structure on a 1,000 acre farm compared to a 2,000 acre farm is very different and Producer A’s historical margins would need to be adjusted to reflect this change.
A copy of your structural change calculation can be provided upon request by calling our Client Care Centre.
Structural change adjustments can both increase or
decrease historical production margins. Applying these
adjustments ensures that a participant’s historical
margins are more accurately reflected based on any
changes to their farming operation in the program year.
Related Resources: AFSC Technical Information Circular #6 – Structural Change and Part 4 of the AgriStability Program Guidelines (see www.afsc.ca)
12
Calculation of program benefits
STEP 1: Calculate the Olympic Average Reference Margin
The olympic average reference margin is calculated by dropping the highest and lowest adjusted production margins in the 5 years priors to the program year and averaging the remaining 3 years.
Year 1 Year 2 Year 3 Year 4 Year 5 Program
Year
Adjusted Production Margins $250,000 $220,000 $215,000 $141,000 $195,000 -$10,000 High Year ✓ ✓ Low Year ✓
Average used for Reference Margin
Program Year Benefit Calculation
$210,000

Provided that a participant has met all of the program eligibility requirements, benefits are paid at $0.80 on the dollar for every dollar drop that is below 70 per cent of the reference margin.
STEP 2: Calculate program benefits
Olympic Average Reference Margin (OARM) $210,000
Benefit Trigger Level (70% of OARM) $147,000
Program Year Margin -$10,000
Margin decline $157,000
Positive margin decline $147,000
Negative margin decline $10,000
Total $157,000
Benefit
Positive margin decline > 30% ($147,000 x 80%) $117,600 Negative margin decline ($10,000 x 80%) $8,000
TOTAL Benefit to Participant ($157,000 x 80%)
Benefits must calculate to $250 or greater to be received by Participants. The maximum benefit per Participant is $3,000,000.
$125,600

When an AgriStability claim is completed, the participant will receive a calculation of program benefits package. Participants should review the information in the package for accuracy. If an amendment is required, refer to the revisions and amendments section of this handbook.
13
Other information about program benefits
Participants may be combined by AFSC to determine program benefits if it is determined that they are operating as a whole farm. Participants who are combined will have the benefit cap of $3,000,000 applied to the combined operation. Each participant will have their benefit determined by the per cent of the whole farm interest held at the end of the program year.
Beginning farmers with less than five years of tax and supplementary information will have their applied reference margin calculated using the three years immediately preceding the program year until such time that there are five years available to calculate an olympic average reference margin.
If the applied reference margin is negative and more than one of the three selected years is negative, the participant’s claim will not be eligible for that program year.
Participants who did not participate in an AFSC administered AgriInsurance program at the minimum level (70% coverage) for an insurable commodity, will have their negative decline benefit amount reduced by 70% of the deemed production insurance benefit calculated for that commodity, based on information provided by AgriStability.
Interim benefit calculation
Interim benefit calculations give participants the option to receive an advance payment prior to the end of their program year in situations where they have suffered large income declines.
A participant may apply for an interim benefit upon completing 6 months of farming and up to 90 days after the completion of their program year.
To reduce the risk of overpayment, benefits are paid at 50 per cent of an estimated final benefit and benefits are limited to positive margin declines only; no payment of benefits on negative margins. Any interim benefits received will reduce final program benefits for that program year.
Participants who submit an interim application and receive benefits must submit a final application by the required deadlines. Failure to do so will result in a full overpayment of interim benefits.
For additional information about how to apply for an interim benefit refer to the interim application and interim guide available on our website at www.afsc.ca.
14
Late participation
Late participation may only be provided in program years that have experienced a significant agricultural disaster, whereby both the federal and provincial governments have agreed jointly to extend the deadline for participation.
This change does not allow for late participation due to a disaster on an individual farm, only in special circumstances (industry wide or province-wide disaster).
Late participants must comply with all program requirements and deadlines.
Payments to late participants, including interims, will be reduced by 20 per cent prior to applying any other deductions or penalties.
Related Resources: AgriStability Program Guidelines Part 3.7 and Annex D (see www.afsc.ca)
Revisions and amendments
• A participant may request, in writing, an adjustment to information pertaining to the program year and its related benefits within 18 months following issuance of the original calculation of program benefits statement. Adjustments requested after this time may not result in any changes to benefits for the program year.
• A participant may request, in writing, an adjustment to amended information within 90 days following issuance of an amended calculation of program benefits statement.
• All adjustments require supporting documentation and are subject to verification, audit and/or inspection by AFSC.
• The participant must inform AFSC within 30 days of the discovery of any changes or errors in the information provided, including amendments or reassessments by the CRA of income tax information.
• AFSC is not responsible for notifying participants or the CRA of incorrect tax reporting.
• The administrator may initiate adjustments to information used in calculating program benefits for a program year (including information used in calculating the reference margin for that program year) for up to six years after notification of the original calculation of program benefits for that program year.
• Participants will be required to repay any overpayment of benefits to AFSC. Interest will commence 30 days after the date of notification of overpayment is issued. The interest rate used is the CIBC prime rate plus 2 per cent per annum.
Related Resources: AFSC Technical Information Circular #1 – Information on Reprocessing Claims (see www.afsc.ca)
15
Appeals
A participant who is of the opinion that program rules were not correctly applied in the processing of their program year file may request a review by the administrator. The administrator may refer matters raised by participants to an appeals committee.
Appeals shall be subject to a deadline of 90 days from the date that the participant is notified by AFSC of the decision which is subject to appeal. Appeals must be submitted in writing to:
AgriStability Appeal Committee
c/o AFSC
5718 56 Avenue
Lacombe, Alberta T4L 1B1
The written appeal must:
a. Clearly identify the nature of the appeal
b. Provide sufficient information and documentation to substantiate the appeal, and
c. Specify the remedy being sought
The AgriStability Appeal Committee must make recommendations in accordance with the agreements and legislation governing AgriStability.
16
Other BRM programs and AFSC products
AgriInsurance
AFSC provides cost-shared production based and area based insurance covering a variety of commodities.
AgriInvest
AgriInvest is a matching deposit-based program for participants who face small margin declines. The program is administered by the Agriculture and Agri-Food Canada (AAFC). AgriInvest funds, including the government contribution, can be withdrawn at any time with no pre-existing withdrawal requirements. The program is simple, responsive, predictable, and bankable. AFSC collects tax information for corporations, cooperatives and other entities and forwards this information to AAFC for the AgriInvest Program.
AgriRecovery
AgriRecovery is a disaster relief framework to help participants with the cost of activities necessary for recovery following natural disaster events. The program must be declared jointly by the federal and provincial governments. AgriRecovery is intended to respond in situations where participants do not have the capacity to cover the extraordinary costs, even with the assistance available from other programs.
Livestock Price Insurance (LPI)
LPI is a risk management tool available in British Columbia, Alberta, Saskatchewan and Manitoba. LPI provides producers with protection against an unexpected drop in prices for cattle and hogs over a defined period of time.
Lending
AFSC supported primary agricultural producers and agribusinesses in Alberta through its lending programs. Through partnerships with producers and businesses, AFSC helps maintain a profitable agriculture sector in the province and stimulates healthy rural communities.
For additional information about the programs available at AFSC visit our website at www.afsc.ca.
17
INSURANCE | LENDING | INCOME STABILIZATION AFSC.ca • 1.877.899.2372 • [email protected]



9.PLANNING FOR YOUR BUSINESS ………………………………………………………………………………….42
What is a business plan? …………………………………………………………………………………………………….43
Why do you need a business plan? ……………………………………………………………………………………….43
Why should you write a business plan?………………………………………………………………………………….44
Who should write your business plan? …………………………………………………………………………………..44
What are some common guidelines when writing a good business plan? ……………………………………..45
Where can you find the market research, industry and competitor information for your plan? ………….46
How do you prepare the financials in your business plan?………………………………………………………….48
What are some common mistakes in writing a business plan? ……………………………………………………49
In what order should you write your business plan in? ………………………………………………………………52
Should you be using software to help you write your business plan? …………………………………………… 53
Where can you find sample business plans and templates? ……………………………………………………….54
How long should your business plan be?………………………………………………………………………………..54
Can you go on without having a business plan?……………………………………………………………………….55
10.BUSINESS CONTINUITY PLANNING……………………………………………………………………………..56
What are the steps of business continuity planning? ………………………………………………………………..56
11.WRITING YOUR BUSINESS PLAN………………………………………………………………………………….59
Is the order of the business plan important? …………………………………………………………………………..59
Small Business Startup Guide
www.CanadaStartups.org 2Naming your small business ……………………………………………………………………………………………….24
Permits, licenses and regulations …………………………………………………………………………………………25
Employees, payroll and taxes………………………………………………………………………………………………25
Business registration links ………………………………………………………………………………………………….26
Provincial and territorial business registration ……………………………………………………………………….. 27
Incorporating your small business ………………………………………………………………………………………..30
Permits, licenses and regulations …………………………………………………………………………………………32
7.BUSINESS PLANNING………………………………………………………………………………………………….. 33
Why do you need a business plan? ………………………………………………………………………………………. 33
The different types of business plans ……………………………………………………………………………………34
8.FINANCING YOUR BUSINESS ………………………………………………………………………………………..38
Why is having money important to start a business?………………………………………………………………..38
Where will you get the money from?…………………………………………………………………………………….40
9.PLANNING FOR YOUR BUSINESS ………………………………………………………………………………….42
What is a business plan? …………………………………………………………………………………………………….43
Why do you need a business plan? ……………………………………………………………………………………….43
Why should you write a business plan?………………………………………………………………………………….44
Who should write your business plan? …………………………………………………………………………………..44
What are some common guidelines when writing a good business plan? ……………………………………..45
Where can you find the market research, industry and competitor information for your plan? ………….46
How do you prepare the financials in your business plan?………………………………………………………….48
What are some common mistakes in writing a business plan? ……………………………………………………49
In what order should you write your business plan in? ………………………………………………………………52
Should you be using software to help you write your business plan? …………………………………………… 53
Where can you find sample business plans and templates? ……………………………………………………….54
How long should your business plan be?………………………………………………………………………………..54
Can you go on without having a business plan?……………………………………………………………………….55
10.BUSINESS CONTINUITY PLANNING……………………………………………………………………………..56
What are the steps of business continuity planning? ………………………………………………………………..56
11.WRITING YOUR BUSINESS PLAN………………………………………………………………………………….59
Is the order of the business plan important? …………………………………………………………………………..59
Small Business Startup Guide
3www.CanadaStartups.org
12.FINANCING FOR YOUR SMALL BUSINESS…………………………………………………………………….. 70
13.PERSONAL FINANCING………………………………………………………………………………………………. 72
14.PRIVATE SECTOR FINANCING ……………………………………………………………………………………..76
So what is cash flow?………………………………………………………………………………………………………… 76
What is collateral?……………………………………………………………………………………………………………. 76
What is commitment? ………………………………………………………………………………………………………. 76
What is character?……………………………………………………………………………………………………………. 76
How do you make a good impression with potential lenders?……………………………………………………. 76
Going to the bank for financing…………………………………………………………………………………………… 77
Equity for financing………………………………………………………………………………………………………….. 79
What do these investors want in return for their investment?……………………………………………………. 79
Who are angel investors?……………………………………………………………………………………………………80
Who are venture capitalists?……………………………………………………………………………………………….81
Business Incubators…………………………………………………………………………………………………………..81
Crowdfunding your business……………………………………………………………………………………………….82
15.GOVERNMENT FINANCING………………………………………………………………………………………….84
What exactly do you need money or assistance for, and how much? ………………………………………….. 87
Government grants, financial contributions and assistance……………………………………………………….89
Grants and subsidies …………………………………………………………………………………………………………90
Conditionally repayable contributions…………………………………………………………………………………..90
Equity financing ……………………………………………………………………………………………………………….91
Government support and assistance …………………………………………………………………………………….91
Loans, cash advances and guarantees …………………………………………………………………………………..92
Low interest and no interest loans ……………………………………………………………………………………….92
Government guaranteed loans ……………………………………………………………………………………………92
Tax refunds and tax credits …………………………………………………………………………………………………93
Wage subsidies ………………………………………………………………………………………………………………..93
Applying to funding programs …………………………………………………………………………………………….94
Tips to help you in your search for funding programs ……………………………………………………………….95
Tips to help you in your funding application process ………………………………………………………………..96



S M A L L B U S I N E S S S T A R T U P G U I D E
www.CanadaStartups.org
Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
SUMMARY
SUMMARY
SUMMARY
1.IS ENTREPRENEURSHIP FOR YOU?………………………………………………………………………………… 4 1.IS ENTREPRENEURSHIP FOR YOU?………………………………………………………………………………… 4 1.IS ENTREPRENEURSHIP FOR YOU?………………………………………………………………………………… 4 2.WHY CONSIDER ENTREPRENEURSHIP? …………………………………………………………………………. 6 2.WHY CONSIDER ENTREPRENEURSHIP? …………………………………………………………………………. 6 2.WHY CONSIDER ENTREPRENEURSHIP? …………………………………………………………………………. 6 But why consider becoming an entrepreneur? ………………………………………………………………………… 6 But why consider becoming an entrepreneur? ………………………………………………………………………… 6 But why consider becoming an entrepreneur? ………………………………………………………………………… 6 What are the benefits of becoming an entrepreneur? ………………………………………………………………. 6 What are the benefits of becoming an entrepreneur? ………………………………………………………………. 6 What are the benefits of becoming an entrepreneur? ………………………………………………………………. 6 Take your idea, and put it to work for yourself………………………………………………………………………… 6 Take your idea, and put it to work for yourself………………………………………………………………………… 6 Take your idea, and put it to work for yourself………………………………………………………………………… 6 Decide on the type of business that’s right for you…………………………………………………………………… 6 Decide on the type of business that’s right for you…………………………………………………………………… 6 Decide on the type of business that’s right for you…………………………………………………………………… 6 Start making the right decisions ……………………………………………………………………………………………7
Start making the right decisions ……………………………………………………………………………………………7 Start making the right decisions ……………………………………………………………………………………………7 Location, location, location ………………………………………………………………………………………………….7 Location, location, location ………………………………………………………………………………………………….7 Location, location, location ………………………………………………………………………………………………….7 Collecting your paycheck……………………………………………………………………………………………………..7 Collecting your paycheck……………………………………………………………………………………………………..7 Collecting your paycheck……………………………………………………………………………………………………..7 Working less and making more……………………………………………………………………………………………. 8
Working less and making more……………………………………………………………………………………………. 8 Working less and making more……………………………………………………………………………………………. 8 Be involved and do what you love ………………………………………………………………………………………… 8 Be involved and do what you love ………………………………………………………………………………………… 8 Be involved and do what you love ………………………………………………………………………………………… 8 So why consider becoming an entrepreneur? …………………………………………………………………………. 8 So why consider becoming an entrepreneur? …………………………………………………………………………. 8 So why consider becoming an entrepreneur? …………………………………………………………………………. 8 3.SMALL BUSINESS SURVIVAL GUIDE ………………………………………………………………………………. 9 3.SMALL BUSINESS SURVIVAL GUIDE ………………………………………………………………………………. 9 3.SMALL BUSINESS SURVIVAL GUIDE ………………………………………………………………………………. 9 What are your odds of success of surviving in business? ……………………………………………………………12 What are your odds of success of surviving in business? ……………………………………………………………12 What are your odds of success of surviving in business? ……………………………………………………………12 Okay, okay…give me some survival tips ……………………………………………………………………………….. 12 Okay, okay…give me some survival tips ……………………………………………………………………………….. 12 Okay, okay…give me some survival tips ……………………………………………………………………………….. 12 4.BUYING A BUSINESS OR STARTING YOUR OWN……………………………………………………………..14 4.BUYING A BUSINESS OR STARTING YOUR OWN……………………………………………………………..14 4.BUYING A BUSINESS OR STARTING YOUR OWN……………………………………………………………..14 Pros and cons of starting your own business…………………………………………………………………………..14 Pros and cons of starting your own business…………………………………………………………………………..14 Pros and cons of starting your own business…………………………………………………………………………..14 Pros and cons of buying an existing business or franchise ………………………………………………………… 15 Pros and cons of buying an existing business or franchise ………………………………………………………… 15 Pros and cons of buying an existing business or franchise ………………………………………………………… 15 5.DEVELOPING YOUR IDEA …………………………………………………………………………………………….. 17
5.DEVELOPING YOUR IDEA …………………………………………………………………………………………….. 17 5.DEVELOPING YOUR IDEA …………………………………………………………………………………………….. 17 Is your idea unique?………………………………………………………………………………………………………….. 17 Is your idea unique?………………………………………………………………………………………………………….. 17 Is your idea unique?………………………………………………………………………………………………………….. 17 Will anybody buy what you are selling? ………………………………………………………………………………… 18
Will anybody buy what you are selling? ………………………………………………………………………………… 18 Will anybody buy what you are selling? ………………………………………………………………………………… 18 Who are your customers? …………………………………………………………………………………………………..18 Who are your customers? …………………………………………………………………………………………………..18 Who are your customers? …………………………………………………………………………………………………..18 What is your plan for producing your product or service? ………………………………………………………….20 What is your plan for producing your product or service? ………………………………………………………….20 What is your plan for producing your product or service? ………………………………………………………….20 What is your marketing and promotion plan? …………………………………………………………………………21
What is your marketing and promotion plan? …………………………………………………………………………21 What is your marketing and promotion plan? …………………………………………………………………………21 What else do you need to know?………………………………………………………………………………………….21 What else do you need to know?………………………………………………………………………………………….21 What else do you need to know?………………………………………………………………………………………….21 6.TYPE OF BUSINESS………………………………………………………………………………………………………22
6.TYPE OF BUSINESS………………………………………………………………………………………………………22 6.TYPE OF BUSINESS………………………………………………………………………………………………………22 Sole proprietorship …………………………………………………………………………………………………………..22 Sole proprietorship …………………………………………………………………………………………………………..22 Sole proprietorship …………………………………………………………………………………………………………..22 Partnerships ……………………………………………………………………………………………………………………23
Partnerships ……………………………………………………………………………………………………………………23 Partnerships ……………………………………………………………………………………………………………………23 Corporations……………………………………………………………………………………………………………………23 Corporations……………………………………………………………………………………………………………………23
Corporations……………………………………………………………………………………………………………………231www.CanadaStartups.org
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Naming your small business ……………………………………………………………………………………………….24 Naming your small business ……………………………………………………………………………………………….24 Naming your small business ……………………………………………………………………………………………….24 Permits, licenses and regulations …………………………………………………………………………………………25
Permits, licenses and regulations …………………………………………………………………………………………25 Permits, licenses and regulations …………………………………………………………………………………………25 Employees, payroll and taxes………………………………………………………………………………………………25 Employees, payroll and taxes………………………………………………………………………………………………25 Employees, payroll and taxes………………………………………………………………………………………………25 Business registration links ………………………………………………………………………………………………….26
Business registration links ………………………………………………………………………………………………….26 Business registration links ………………………………………………………………………………………………….26 Provincial and territorial business registration ……………………………………………………………………….. 27 Provincial and territorial business registration ……………………………………………………………………….. 27 Provincial and territorial business registration ……………………………………………………………………….. 27 Incorporating your small business ………………………………………………………………………………………..30 Incorporating your small business ………………………………………………………………………………………..30 Incorporating your small business ………………………………………………………………………………………..30 Permits, licenses and regulations …………………………………………………………………………………………32 Permits, licenses and regulations …………………………………………………………………………………………32 Permits, licenses and regulations …………………………………………………………………………………………32 7.BUSINESS PLANNING………………………………………………………………………………………………….. 33 7.BUSINESS PLANNING………………………………………………………………………………………………….. 33 7.BUSINESS PLANNING………………………………………………………………………………………………….. 33 Why do you need a business plan? ………………………………………………………………………………………. 33 Why do you need a business plan? ………………………………………………………………………………………. 33 Why do you need a business plan? ………………………………………………………………………………………. 33 The different types of business plans ……………………………………………………………………………………34 The different types of business plans ……………………………………………………………………………………34 The different types of business plans ……………………………………………………………………………………34 8.FINANCING YOUR BUSINESS ………………………………………………………………………………………..38 8.FINANCING YOUR BUSINESS ………………………………………………………………………………………..38 8.FINANCING YOUR BUSINESS ………………………………………………………………………………………..38 Why is having money important to start a business?………………………………………………………………..38 Why is having money important to start a business?………………………………………………………………..38 Why is having money important to start a business?………………………………………………………………..38 Where will you get the money from?…………………………………………………………………………………….40 Where will you get the money from?…………………………………………………………………………………….40 Where will you get the money from?…………………………………………………………………………………….40 9.PLANNING FOR YOUR BUSINESS ………………………………………………………………………………….42 9.PLANNING FOR YOUR BUSINESS ………………………………………………………………………………….42 9.PLANNING FOR YOUR BUSINESS ………………………………………………………………………………….42 What is a business plan? …………………………………………………………………………………………………….43 What is a business plan? …………………………………………………………………………………………………….43 What is a business plan? …………………………………………………………………………………………………….43 Why do you need a business plan? ……………………………………………………………………………………….43 Why do you need a business plan? ……………………………………………………………………………………….43 Why do you need a business plan? ……………………………………………………………………………………….43 Why should you write a business plan?………………………………………………………………………………….44 Why should you write a business plan?………………………………………………………………………………….44 Why should you write a business plan?………………………………………………………………………………….44 Who should write your business plan? …………………………………………………………………………………..44 Who should write your business plan? …………………………………………………………………………………..44 Who should write your business plan? …………………………………………………………………………………..44 What are some common guidelines when writing a good business plan? ……………………………………..45 What are some common guidelines when writing a good business plan? ……………………………………..45 What are some common guidelines when writing a good business plan? ……………………………………..45 Where can you find the market research, industry and competitor information for your plan? ………….46 Where can you find the market research, industry and competitor information for your plan? ………….46 Where can you find the market research, industry and competitor information for your plan? ………….46 How do you prepare the financials in your business plan?………………………………………………………….48 How do you prepare the financials in your business plan?………………………………………………………….48 How do you prepare the financials in your business plan?………………………………………………………….48 What are some common mistakes in writing a business plan? ……………………………………………………49 What are some common mistakes in writing a business plan? ……………………………………………………49 What are some common mistakes in writing a business plan? ……………………………………………………49 In what order should you write your business plan in? ………………………………………………………………52 In what order should you write your business plan in? ………………………………………………………………52 In what order should you write your business plan in? ………………………………………………………………52 Should you be using software to help you write your business plan? …………………………………………… 53 Should you be using software to help you write your business plan? …………………………………………… 53 Should you be using software to help you write your business plan? …………………………………………… 53 Where can you find sample business plans and templates? ……………………………………………………….54 Where can you find sample business plans and templates? ……………………………………………………….54 Where can you find sample business plans and templates? ……………………………………………………….54 How long should your business plan be?………………………………………………………………………………..54 How long should your business plan be?………………………………………………………………………………..54 How long should your business plan be?………………………………………………………………………………..54 Can you go on without having a business plan?……………………………………………………………………….55 Can you go on without having a business plan?……………………………………………………………………….55 Can you go on without having a business plan?……………………………………………………………………….55 10.BUSINESS CONTINUITY PLANNING……………………………………………………………………………..56 10.BUSINESS CONTINUITY PLANNING……………………………………………………………………………..56 10.BUSINESS CONTINUITY PLANNING……………………………………………………………………………..56 What are the steps of business continuity planning? ………………………………………………………………..56 What are the steps of business continuity planning? ………………………………………………………………..56 What are the steps of business continuity planning? ………………………………………………………………..56 11.WRITING YOUR BUSINESS PLAN………………………………………………………………………………….59 11.WRITING YOUR BUSINESS PLAN………………………………………………………………………………….59 11.WRITING YOUR BUSINESS PLAN………………………………………………………………………………….59 Is the order of the business plan important? …………………………………………………………………………..59 Is the order of the business plan important? …………………………………………………………………………..59
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12.FINANCING FOR YOUR SMALL BUSINESS…………………………………………………………………….. 70 12.FINANCING FOR YOUR SMALL BUSINESS…………………………………………………………………….. 70 12.FINANCING FOR YOUR SMALL BUSINESS…………………………………………………………………….. 70 13.PERSONAL FINANCING………………………………………………………………………………………………. 72 13.PERSONAL FINANCING………………………………………………………………………………………………. 72 13.PERSONAL FINANCING………………………………………………………………………………………………. 72 14.PRIVATE SECTOR FINANCING ……………………………………………………………………………………..76 14.PRIVATE SECTOR FINANCING ……………………………………………………………………………………..76 14.PRIVATE SECTOR FINANCING ……………………………………………………………………………………..76 So what is cash flow?………………………………………………………………………………………………………… 76 So what is cash flow?………………………………………………………………………………………………………… 76 So what is cash flow?………………………………………………………………………………………………………… 76 What is collateral?……………………………………………………………………………………………………………. 76 What is collateral?……………………………………………………………………………………………………………. 76 What is collateral?……………………………………………………………………………………………………………. 76 What is commitment? ………………………………………………………………………………………………………. 76 What is commitment? ………………………………………………………………………………………………………. 76 What is commitment? ………………………………………………………………………………………………………. 76 What is character?……………………………………………………………………………………………………………. 76 What is character?……………………………………………………………………………………………………………. 76 What is character?……………………………………………………………………………………………………………. 76 How do you make a good impression with potential lenders?……………………………………………………. 76 How do you make a good impression with potential lenders?……………………………………………………. 76 How do you make a good impression with potential lenders?……………………………………………………. 76 Going to the bank for financing…………………………………………………………………………………………… 77
Going to the bank for financing…………………………………………………………………………………………… 77 Going to the bank for financing…………………………………………………………………………………………… 77 Equity for financing………………………………………………………………………………………………………….. 79 Equity for financing………………………………………………………………………………………………………….. 79 Equity for financing………………………………………………………………………………………………………….. 79 What do these investors want in return for their investment?……………………………………………………. 79 What do these investors want in return for their investment?……………………………………………………. 79 What do these investors want in return for their investment?……………………………………………………. 79 Who are angel investors?……………………………………………………………………………………………………80 Who are angel investors?……………………………………………………………………………………………………80 Who are angel investors?……………………………………………………………………………………………………80 Who are venture capitalists?……………………………………………………………………………………………….81 Who are venture capitalists?……………………………………………………………………………………………….81 Who are venture capitalists?……………………………………………………………………………………………….81 Business Incubators…………………………………………………………………………………………………………..81 Business Incubators…………………………………………………………………………………………………………..81 Business Incubators…………………………………………………………………………………………………………..81 Crowdfunding your business……………………………………………………………………………………………….82 Crowdfunding your business……………………………………………………………………………………………….82 Crowdfunding your business……………………………………………………………………………………………….82 15.GOVERNMENT FINANCING………………………………………………………………………………………….84 15.GOVERNMENT FINANCING………………………………………………………………………………………….84 15.GOVERNMENT FINANCING………………………………………………………………………………………….84 What exactly do you need money or assistance for, and how much? ………………………………………….. 87 What exactly do you need money or assistance for, and how much? ………………………………………….. 87 What exactly do you need money or assistance for, and how much? ………………………………………….. 87 Government grants, financial contributions and assistance……………………………………………………….89 Government grants, financial contributions and assistance……………………………………………………….89 Government grants, financial contributions and assistance……………………………………………………….89 Grants and subsidies …………………………………………………………………………………………………………90 Grants and subsidies …………………………………………………………………………………………………………90 Grants and subsidies …………………………………………………………………………………………………………90 Conditionally repayable contributions…………………………………………………………………………………..90 Conditionally repayable contributions…………………………………………………………………………………..90 Conditionally repayable contributions…………………………………………………………………………………..90 Equity financing ……………………………………………………………………………………………………………….91 Equity financing ……………………………………………………………………………………………………………….91 Equity financing ……………………………………………………………………………………………………………….91 Government support and assistance …………………………………………………………………………………….91 Government support and assistance …………………………………………………………………………………….91 Government support and assistance …………………………………………………………………………………….91 Loans, cash advances and guarantees …………………………………………………………………………………..92 Loans, cash advances and guarantees …………………………………………………………………………………..92 Loans, cash advances and guarantees …………………………………………………………………………………..92 Low interest and no interest loans ……………………………………………………………………………………….92 Low interest and no interest loans ……………………………………………………………………………………….92 Low interest and no interest loans ……………………………………………………………………………………….92 Government guaranteed loans ……………………………………………………………………………………………92 Government guaranteed loans ……………………………………………………………………………………………92 Government guaranteed loans ……………………………………………………………………………………………92 Tax refunds and tax credits …………………………………………………………………………………………………93 Tax refunds and tax credits …………………………………………………………………………………………………93 Tax refunds and tax credits …………………………………………………………………………………………………93 Wage subsidies ………………………………………………………………………………………………………………..93 Wage subsidies ………………………………………………………………………………………………………………..93 Wage subsidies ………………………………………………………………………………………………………………..93 Applying to funding programs …………………………………………………………………………………………….94 Applying to funding programs …………………………………………………………………………………………….94 Applying to funding programs …………………………………………………………………………………………….94 Tips to help you in your search for funding programs ……………………………………………………………….95 Tips to help you in your search for funding programs ……………………………………………………………….95 Tips to help you in your search for funding programs ……………………………………………………………….95 Tips to help you in your funding application process ………………………………………………………………..96 Tips to help you in your funding application process ………………………………………………………………..96 Tips to help you in your funding application process ………………………………………………………………..96
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1. IS ENTREPRENEURSHIP FOR YOU? 1. IS ENTREPRENEURSHIP FOR YOU? 1. IS ENTREPRENEURSHIP FOR YOU? Starting your own business can be an exciting and lucrative experience. It not only offers the advantage
Starting your own business can be an exciting and lucrative experience. It not only offers the advantage
Starting your own business can be an exciting and lucrative experience. It not only offers the advantage of being your own boss and setting your own hours, but you will be engaged in doing something that
of being your own boss and setting your own hours, but you will be engaged in doing something that
of being your own boss and setting your own hours, but you will be engaged in doing something that you love. However, becoming a business owner isn’t as easy as it sounds. And to be sure, becoming a
you love. However, becoming a business owner isn’t as easy as it sounds. And to be sure, becoming a
you love. However, becoming a business owner isn’t as easy as it sounds. And to be sure, becoming a lucrative business owner isn’t all glamorous. In reality, successful entrepreneurs put in nearly twice the
lucrative business owner isn’t all glamorous. In reality, successful entrepreneurs put in nearly twice the
lucrative business owner isn’t all glamorous. In reality, successful entrepreneurs put in nearly twice the hours during the initial stages of a business’ start-up as a full time employee working for somebody else.
hours during the initial stages of a business’ start-up as a full time employee working for somebody else. hours during the initial stages of a business’ start-up as a full time employee working for somebody else. In business, there are no guarantees. It’s all
In business, there are no guarantees. It’s all
In business, there are no guarantees. It’s all
about careful planning, assessing risks, and
about careful planning, assessing risks, and
about careful planning, assessing risks, and
troubleshooting scenarios which may hinder the
troubleshooting scenarios which may hinder the
troubleshooting scenarios which may hinder the
viability and success of your new venture.
viability and success of your new venture.
viability and success of your new venture.
It is important to start by evaluating your
It is important to start by evaluating your
It is important to start by evaluating your
strengths and weaknesses as an owner or
strengths and weaknesses as an owner or
strengths and weaknesses as an owner or
manager of your small business. You must
manager of your small business. You must
manager of your small business. You must
carefully consider all factors. Let’s consider this
carefully consider all factors. Let’s consider this
carefully consider all factors. Let’s consider this
question first, “Can you handle it?”
question first, “Can you handle it?”
question first, “Can you handle it?”
So, can you handle it?
So, can you handle it?
So, can you handle it?
Anybody can just start a business- but how will you be successful? Do you have what it takes to succeed Anybody can just start a business- but how will you be successful? Do you have what it takes to succeed
Anybody can just start a business- but how will you be successful? Do you have what it takes to succeed and keep on succeeding week after week, year after year? Consider whether you have the
and keep on succeeding week after week, year after year? Consider whether you have the
and keep on succeeding week after week, year after year? Consider whether you have the characteristics and skills commonly associated with successful entrepreneurs and independent business
characteristics and skills commonly associated with successful entrepreneurs and independent business
characteristics and skills commonly associated with successful entrepreneurs and independent business owners.
owners.
owners.
✔ Are you a risk taker?
✔ Are you a risk taker?
✔ Are you a risk taker?
There are no certainties when it comes to business ownership. Every move you make can be a There are no certainties when it comes to business ownership. Every move you make can be a
There are no certainties when it comes to business ownership. Every move you make can be a gamble. You, as a business owner must be comfortable taking risks for the sake of reward.
gamble. You, as a business owner must be comfortable taking risks for the sake of reward. gamble. You, as a business owner must be comfortable taking risks for the sake of reward.
✔ Are you a decision-maker?
✔ Are you a decision-maker?
✔ Are you a decision-maker?
Not having to report to a boss (or higher up), means that you are the boss. Great! But Not having to report to a boss (or higher up), means that you are the boss. Great! But
Not having to report to a boss (or higher up), means that you are the boss. Great! But remember that you are the one who has to make all of the decisions, ranging from which
remember that you are the one who has to make all of the decisions, ranging from which
remember that you are the one who has to make all of the decisions, ranging from which printer paper to buy to the pivotal decisions such as; vendor selection, marketing strategies,
printer paper to buy to the pivotal decisions such as; vendor selection, marketing strategies,
printer paper to buy to the pivotal decisions such as; vendor selection, marketing strategies, and budget management, all of which will contribute to the ultimate success or failure of your
and budget management, all of which will contribute to the ultimate success or failure of your
and budget management, all of which will contribute to the ultimate success or failure of your business.
business.
business.
✔ Are you sales driven?
✔ Are you sales driven?
✔ Are you sales driven?
Selling doesn’t mean just getting on the phone and calling potential customers. Selling requires Selling doesn’t mean just getting on the phone and calling potential customers. Selling requires
Selling doesn’t mean just getting on the phone and calling potential customers. Selling requires an effective use of your skills of persuasion. The gifts of gab as it were. Are you able to take your
an effective use of your skills of persuasion. The gifts of gab as it were. Are you able to take your
an effective use of your skills of persuasion. The gifts of gab as it were. Are you able to take your great idea and make others feel that your products, services or overall business model is great
great idea and make others feel that your products, services or overall business model is great
great idea and make others feel that your products, services or overall business model is great as well? Remember, you will have to persuade your customers, employees and potential
as well? Remember, you will have to persuade your customers, employees and potential
as well? Remember, you will have to persuade your customers, employees and potential investors to get on board with the vision you have for your business.
investors to get on board with the vision you have for your business.
investors to get on board with the vision you have for your business.
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✔ Are you a great planner?
✔ Are you a great planner?
✔ Are you a great planner?
When it comes to business startups, planning is a key stage in launching a successful business. When it comes to business startups, planning is a key stage in launching a successful business.
When it comes to business startups, planning is a key stage in launching a successful business. Planning is actually where most business owners fail. Over planning, not planning enough or
Planning is actually where most business owners fail. Over planning, not planning enough or
Planning is actually where most business owners fail. Over planning, not planning enough or missing key opportunities can all have a serious effect on the initial startup of your business.
missing key opportunities can all have a serious effect on the initial startup of your business.
missing key opportunities can all have a serious effect on the initial startup of your business. Good planning…great planning involves exhaustive research, dedication, hard work and an
Good planning…great planning involves exhaustive research, dedication, hard work and an
Good planning…great planning involves exhaustive research, dedication, hard work and an active desire to do and to succeed.
active desire to do and to succeed.
active desire to do and to succeed.
You might be a great decision maker who welcomes risks and takes them head-on. You may be a You might be a great decision maker who welcomes risks and takes them head-on. You may be a
You might be a great decision maker who welcomes risks and takes them head-on. You may be a decisive and concise planner. And you may be a persuasive salesperson selling bags of ice to a penguin
decisive and concise planner. And you may be a persuasive salesperson selling bags of ice to a penguin
decisive and concise planner. And you may be a persuasive salesperson selling bags of ice to a penguin living in the Antarctic. But even with all these skills and a plan that is destined to succeed, other factors
living in the Antarctic. But even with all these skills and a plan that is destined to succeed, other factors
living in the Antarctic. But even with all these skills and a plan that is destined to succeed, other factors will come into play determining whether you have what it takes to become an entrepreneur. Keep in
will come into play determining whether you have what it takes to become an entrepreneur. Keep in
will come into play determining whether you have what it takes to become an entrepreneur. Keep in mind that to be a successful entrepreneur, you must be a self-starter, manage a variety of stakeholders
mind that to be a successful entrepreneur, you must be a self-starter, manage a variety of stakeholders
mind that to be a successful entrepreneur, you must be a self-starter, manage a variety of stakeholders and personalities, and have the physical, emotional and financial stamina to run a business.
and personalities, and have the physical, emotional and financial stamina to run a business. and personalities, and have the physical, emotional and financial stamina to run a business. Still unsure if becoming an entrepreneur is right for you? Try the Entrepreneur Self-Assessment Test. Still unsure if becoming an entrepreneur is right for you? Try the Entrepreneur Self-Assessment Test. Still unsure if becoming an entrepreneur is right for you? Try the Entrepreneur Self-Assessment Test.
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2. WHY CONSIDER ENTREPRENEURSHIP? 2. WHY CONSIDER ENTREPRENEURSHIP? 2. WHY CONSIDER ENTREPRENEURSHIP? Now that you have taken time to determine if becoming an entrepreneur is right for you and you’ve
Now that you have taken time to determine if becoming an entrepreneur is right for you and you’ve
Now that you have taken time to determine if becoming an entrepreneur is right for you and you’ve taken the Entrepreneur Self-Assessment Test, you have a better idea of what it takes to get you on your
taken the Entrepreneur Self-Assessment Test, you have a better idea of what it takes to get you on your
taken the Entrepreneur Self-Assessment Test, you have a better idea of what it takes to get you on your way to entrepreneurism.
way to entrepreneurism.
way to entrepreneurism.
But why consider becoming an entrepreneur?
But why consider becoming an entrepreneur?
But why consider becoming an entrepreneur?
First off, did you know that there are approximately 2.7 million Canadians who are self-employed? So First off, did you know that there are approximately 2.7 million Canadians who are self-employed? So
First off, did you know that there are approximately 2.7 million Canadians who are self-employed? So what exactly is so enticing about being an entrepreneur, self-employed or being your own boss? Is it
what exactly is so enticing about being an entrepreneur, self-employed or being your own boss? Is it
what exactly is so enticing about being an entrepreneur, self-employed or being your own boss? Is it any easier than working for somebody else?
any easier than working for somebody else?
any easier than working for somebody else?
Becoming a successful entrepreneur requires a lot of effort on your behalf. This includes extensive Becoming a successful entrepreneur requires a lot of effort on your behalf. This includes extensive
Becoming a successful entrepreneur requires a lot of effort on your behalf. This includes extensive planning, innovation and sometimes serious risk-taking. It is a lot of work, most of the time much more
planning, innovation and sometimes serious risk-taking. It is a lot of work, most of the time much more
planning, innovation and sometimes serious risk-taking. It is a lot of work, most of the time much more than a typical 35 to 40 hour work week most people are accustomed to. The difference is that your
than a typical 35 to 40 hour work week most people are accustomed to. The difference is that your
than a typical 35 to 40 hour work week most people are accustomed to. The difference is that your efforts pay off much greater if you are successful at being your own boss.
efforts pay off much greater if you are successful at being your own boss.
efforts pay off much greater if you are successful at being your own boss.
What are the benefits of becoming an entrepreneur? What are the benefits of becoming an entrepreneur? What are the benefits of becoming an entrepreneur?
Think of it this way: You can work for somebody else and help that person or organization achieve their Think of it this way: You can work for somebody else and help that person or organization achieve their
Think of it this way: You can work for somebody else and help that person or organization achieve their dreams of success, or you can take their approach and become an entrepreneur and achieve success for
dreams of success, or you can take their approach and become an entrepreneur and achieve success for
dreams of success, or you can take their approach and become an entrepreneur and achieve success for yourself. But how?
yourself. But how?
yourself. But how?
Take your idea, and put it to work for yourself
Take your idea, and put it to work for yourself
Take your idea, and put it to work for yourself
At one point or another, you’ve thought to yourself about starting a business. Whether it was a silly idea At one point or another, you’ve thought to yourself about starting a business. Whether it was a silly idea
At one point or another, you’ve thought to yourself about starting a business. Whether it was a silly idea shared amongst friends, or a serious idea you wanted to keep to yourself – now is the time to start.
shared amongst friends, or a serious idea you wanted to keep to yourself – now is the time to start. shared amongst friends, or a serious idea you wanted to keep to yourself – now is the time to start. Becoming an entrepreneur with your own unique idea can provide a lifestyle of freedom and Becoming an entrepreneur with your own unique idea can provide a lifestyle of freedom and
Becoming an entrepreneur with your own unique idea can provide a lifestyle of freedom and independence. As an entrepreneur, the time and efforts you expend making this dream into a reality
independence. As an entrepreneur, the time and efforts you expend making this dream into a reality
independence. As an entrepreneur, the time and efforts you expend making this dream into a reality will have much more meaning than sitting at your nine to five desk job, waiting for the work day to pass
will have much more meaning than sitting at your nine to five desk job, waiting for the work day to pass
will have much more meaning than sitting at your nine to five desk job, waiting for the work day to pass by.
by.
by.
Decide on the type of business that’s right for you Decide on the type of business that’s right for you Decide on the type of business that’s right for you
We often hear, find what you are good at, do what you love, the rest will fall in place. Your business idea We often hear, find what you are good at, do what you love, the rest will fall in place. Your business idea
We often hear, find what you are good at, do what you love, the rest will fall in place. Your business idea should compliment your skills, interests, and experience. Before skipping over this step too quickly,
should compliment your skills, interests, and experience. Before skipping over this step too quickly,
should compliment your skills, interests, and experience. Before skipping over this step too quickly, pause for a minute. Be sure that you want to do business for the right reason. If you can only see dollar
pause for a minute. Be sure that you want to do business for the right reason. If you can only see dollar
pause for a minute. Be sure that you want to do business for the right reason. If you can only see dollar signs, maybe the idea isn’t ready yet. Not that you don’t want to be successful or profit from your ideas,
signs, maybe the idea isn’t ready yet. Not that you don’t want to be successful or profit from your ideas,
signs, maybe the idea isn’t ready yet. Not that you don’t want to be successful or profit from your ideas, but you also want to be interested in what you are doing, and love doing it, that day, that month, that
but you also want to be interested in what you are doing, and love doing it, that day, that month, that
but you also want to be interested in what you are doing, and love doing it, that day, that month, that year and even five years from now.
year and even five years from now.
year and even five years from now.
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Small Business Startup Guide
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Small Business Startup Guide
If for any reason your business gets stuck in a situation, you need to have the desire to get the business If for any reason your business gets stuck in a situation, you need to have the desire to get the business
If for any reason your business gets stuck in a situation, you need to have the desire to get the business moving again, and it may be a little tough if it
moving again, and it may be a little tough if it
moving again, and it may be a little tough if it
doesn’t interest you. You need to have passion for
doesn’t interest you. You need to have passion for
doesn’t interest you. You need to have passion for
your idea to continuously drive forward.
your idea to continuously drive forward.
your idea to continuously drive forward.
A perfect example of this is a person who loves cats
A perfect example of this is a person who loves cats
A perfect example of this is a person who loves cats
and dogs. They focus their entire lives on cats and
and dogs. They focus their entire lives on cats and
and dogs. They focus their entire lives on cats and
dogs but then decide to start a business with an
dogs but then decide to start a business with an
dogs but then decide to start a business with an
innovative product for domestic birds. It may be a
innovative product for domestic birds. It may be a
innovative product for domestic birds. It may be a
great product, a winning business idea, but that
great product, a winning business idea, but that
great product, a winning business idea, but that
person’s true passion is cats and dogs. How long will
person’s true passion is cats and dogs. How long will
person’s true passion is cats and dogs. How long will
their commitment to this venture last?
their commitment to this venture last?
their commitment to this venture last?
Start making the right decisions
Start making the right decisions
Start making the right decisions
One of the most difficult undertakings is decision making. No matter how major or minor, you have to One of the most difficult undertakings is decision making. No matter how major or minor, you have to
One of the most difficult undertakings is decision making. No matter how major or minor, you have to make the right choices for the sake of your business.
make the right choices for the sake of your business.
make the right choices for the sake of your business.
Starting your own business is risky. But, with your drive, commitment, and an idea that truly interests Starting your own business is risky. But, with your drive, commitment, and an idea that truly interests
Starting your own business is risky. But, with your drive, commitment, and an idea that truly interests you, you will be able to move forward and make the right decisions – or at least learn quickly from the
you, you will be able to move forward and make the right decisions – or at least learn quickly from the
you, you will be able to move forward and make the right decisions – or at least learn quickly from the bad ones. Believing in what you are doing, and basing your day to day decisions on your past
bad ones. Believing in what you are doing, and basing your day to day decisions on your past
bad ones. Believing in what you are doing, and basing your day to day decisions on your past experiences and your knowledge can help aim the business towards success. Just keep in mind your
experiences and your knowledge can help aim the business towards success. Just keep in mind your
experiences and your knowledge can help aim the business towards success. Just keep in mind your own limits and abilities, and don’t be afraid to stop and ask for help from others who may be able to
own limits and abilities, and don’t be afraid to stop and ask for help from others who may be able to
own limits and abilities, and don’t be afraid to stop and ask for help from others who may be able to point you in the right direction.
point you in the right direction.
point you in the right direction.
Location, location, location
Location, location, location
Location, location, location
As your own boss and depending on the business you choose – you can determine the location best As your own boss and depending on the business you choose – you can determine the location best
As your own boss and depending on the business you choose – you can determine the location best suited to meet your business needs. This can mean working from or near your home, settling into a
suited to meet your business needs. This can mean working from or near your home, settling into a
suited to meet your business needs. This can mean working from or near your home, settling into a bricks and mortar site, or travelling to different cities or countries. While you have a lot of flexibility in
bricks and mortar site, or travelling to different cities or countries. While you have a lot of flexibility in
bricks and mortar site, or travelling to different cities or countries. While you have a lot of flexibility in this decision, keep in mind that location is sometimes the key to the success of your business. If it is a
this decision, keep in mind that location is sometimes the key to the success of your business. If it is a
this decision, keep in mind that location is sometimes the key to the success of your business. If it is a store front operation, think of who your customers will be. If it is an office building, think about when
store front operation, think of who your customers will be. If it is an office building, think about when
store front operation, think of who your customers will be. If it is an office building, think about when you have to hire employees and where you will find them. Will they have far to travel? Are there
you have to hire employees and where you will find them. Will they have far to travel? Are there
you have to hire employees and where you will find them. Will they have far to travel? Are there commuting considerations such as transit accessibility and available parking? Every decision you make
commuting considerations such as transit accessibility and available parking? Every decision you make
commuting considerations such as transit accessibility and available parking? Every decision you make has an impact on your business. Be sure that impact has a positive result.
has an impact on your business. Be sure that impact has a positive result.
has an impact on your business. Be sure that impact has a positive result.
Collecting your paycheck
Collecting your paycheck
Collecting your paycheck
One of the main reasons people become independent business owners is the potential to earn a higher One of the main reasons people become independent business owners is the potential to earn a higher
One of the main reasons people become independent business owners is the potential to earn a higher income. Most of the time, the money doesn’t instantly start rolling in unless you have a blue chip idea
income. Most of the time, the money doesn’t instantly start rolling in unless you have a blue chip idea
income. Most of the time, the money doesn’t instantly start rolling in unless you have a blue chip idea like Facebook, Twitter or YouTube. You sometimes may have to work with a limited income, spending
like Facebook, Twitter or YouTube. You sometimes may have to work with a limited income, spending
like Facebook, Twitter or YouTube. You sometimes may have to work with a limited income, spending countless hours working hard to obtain your first dollar. However, if your business is successful after
countless hours working hard to obtain your first dollar. However, if your business is successful after countless hours working hard to obtain your first dollar. However, if your business is successful after
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
following your plan, your money-making potential may far exceed what you would earn working for following your plan, your money-making potential may far exceed what you would earn working for
following your plan, your money-making potential may far exceed what you would earn working for somebody else.
somebody else.
somebody else.
Working less and making more
Working less and making more
Working less and making more
Even though you are your own boss, it isn’t as glamorous as it seems. Well not in the startup stages at Even though you are your own boss, it isn’t as glamorous as it seems. Well not in the startup stages at
Even though you are your own boss, it isn’t as glamorous as it seems. Well not in the startup stages at least – unless you are really lucky. Most entrepreneurs work 40 plus hours in order to turn a profit. But
least – unless you are really lucky. Most entrepreneurs work 40 plus hours in order to turn a profit. But
least – unless you are really lucky. Most entrepreneurs work 40 plus hours in order to turn a profit. But in reality, you should not see it as work if the idea is one that strongly interests you. Once the business
in reality, you should not see it as work if the idea is one that strongly interests you. Once the business
in reality, you should not see it as work if the idea is one that strongly interests you. Once the business is profitable and its operation organized, you will have staff in place managing the day to day demands
is profitable and its operation organized, you will have staff in place managing the day to day demands
is profitable and its operation organized, you will have staff in place managing the day to day demands of your business – you can then step back and relax a little.
of your business – you can then step back and relax a little.
of your business – you can then step back and relax a little.
Be involved and do what you love
Be involved and do what you love
Be involved and do what you love
When you work for somebody else, you are usually sitting in an office getting your ideas and work When you work for somebody else, you are usually sitting in an office getting your ideas and work
When you work for somebody else, you are usually sitting in an office getting your ideas and work assignments from a supervisor, manager or director – you are simply following orders. Well, as a
assignments from a supervisor, manager or director – you are simply following orders. Well, as a
assignments from a supervisor, manager or director – you are simply following orders. Well, as a business owner – those orders are yours…or your customers. The overwhelming benefit of being your
business owner – those orders are yours…or your customers. The overwhelming benefit of being your
business owner – those orders are yours…or your customers. The overwhelming benefit of being your own boss is that you are fully involved in everything. You have the final say and what you say, goes.
own boss is that you are fully involved in everything. You have the final say and what you say, goes. own boss is that you are fully involved in everything. You have the final say and what you say, goes. But remember, since you are the only one in charge-the sole supervisor, manager, and director-all of But remember, since you are the only one in charge-the sole supervisor, manager, and director-all of
But remember, since you are the only one in charge-the sole supervisor, manager, and director-all of the good and the all the bad falls in your lap. In the beginning stages, when you are starting up, you
the good and the all the bad falls in your lap. In the beginning stages, when you are starting up, you
the good and the all the bad falls in your lap. In the beginning stages, when you are starting up, you need to invest fully in your business- not just financially, but physically and mentally as well. This may
need to invest fully in your business- not just financially, but physically and mentally as well. This may
need to invest fully in your business- not just financially, but physically and mentally as well. This may be a challenge, but ultimately worth it if you plan properly.
be a challenge, but ultimately worth it if you plan properly.
be a challenge, but ultimately worth it if you plan properly.
So why consider becoming an entrepreneur?
So why consider becoming an entrepreneur?
So why consider becoming an entrepreneur?
Isn’t it obvious? What you put into your business determines what you will get out of it. The amount of Isn’t it obvious? What you put into your business determines what you will get out of it. The amount of
Isn’t it obvious? What you put into your business determines what you will get out of it. The amount of work you do to bolster your business will lead to success down the road. The harder you work, the
work you do to bolster your business will lead to success down the road. The harder you work, the
work you do to bolster your business will lead to success down the road. The harder you work, the greater likelihood that your business will thrive. The major draws of entrepreneurship are profit
greater likelihood that your business will thrive. The major draws of entrepreneurship are profit
greater likelihood that your business will thrive. The major draws of entrepreneurship are profit potential, the ability to set your own hours while providing for the future. As an entrepreneur your
potential, the ability to set your own hours while providing for the future. As an entrepreneur your
potential, the ability to set your own hours while providing for the future. As an entrepreneur your potential to earn is unlimited, your time is a valuable commodity, and you can take an idea and build up
potential to earn is unlimited, your time is a valuable commodity, and you can take an idea and build up
potential to earn is unlimited, your time is a valuable commodity, and you can take an idea and build up a business which you can pass along one day. Think of it this way, if you follow the business startup
a business which you can pass along one day. Think of it this way, if you follow the business startup
a business which you can pass along one day. Think of it this way, if you follow the business startup properly and become successful, your great idea pays off not just in the present but also the future.
properly and become successful, your great idea pays off not just in the present but also the future. properly and become successful, your great idea pays off not just in the present but also the future. Now that you know entrepreneurship is right for you, the perks involved and the rationale behind Now that you know entrepreneurship is right for you, the perks involved and the rationale behind
Now that you know entrepreneurship is right for you, the perks involved and the rationale behind independent business ownership, your next step is to review the small business survival guide.
independent business ownership, your next step is to review the small business survival guide. independent business ownership, your next step is to review the small business survival guide. Learn from the experts what it really takes to survive in business.
Learn from the experts what it really takes to survive in business.
Learn from the experts what it really takes to survive in business.
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
3. SMALL BUSINESS SURVIVAL GUIDE 3. SMALL BUSINESS SURVIVAL GUIDE 3. SMALL BUSINESS SURVIVAL GUIDE
You’ve completed the Small Business Self-Assessment Test. You now know that being an entrepreneur You’ve completed the Small Business Self-Assessment Test. You now know that being an entrepreneur
You’ve completed the Small Business Self-Assessment Test. You now know that being an entrepreneur is the right move for you. Your next step is to determine your chances of survival in business.
is the right move for you. Your next step is to determine your chances of survival in business. is the right move for you. Your next step is to determine your chances of survival in business. Starting a new small business is not for everybody. Many potential entrepreneurs may be discouraged Starting a new small business is not for everybody. Many potential entrepreneurs may be discouraged
Starting a new small business is not for everybody. Many potential entrepreneurs may be discouraged by the effort required to create a business. Many may shy away because of the physical, mental and
by the effort required to create a business. Many may shy away because of the physical, mental and
by the effort required to create a business. Many may shy away because of the physical, mental and financial risks one has to take. However, those who do go forward are in for one heck of a ride –
financial risks one has to take. However, those who do go forward are in for one heck of a ride –
financial risks one has to take. However, those who do go forward are in for one heck of a ride – hopefully an enjoyable one at that. .
hopefully an enjoyable one at that. .
hopefully an enjoyable one at that. .
In Canada, as of 2013 there were nearly 1.2 million small businesses. More than 5.1 million of Canadians In Canada, as of 2013 there were nearly 1.2 million small businesses. More than 5.1 million of Canadians
In Canada, as of 2013 there were nearly 1.2 million small businesses. More than 5.1 million of Canadians are employed by small business owners. It may seem like a massive number. It is. Yet, only 51% of new
are employed by small business owners. It may seem like a massive number. It is. Yet, only 51% of new
are employed by small business owners. It may seem like a massive number. It is. Yet, only 51% of new businesses survive past the 5th year. So in actuality, this daunting figure can be cut in half by the 5th year.
businesses survive past the 5th year. So in actuality, this daunting figure can be cut in half by the 5th year. businesses survive past the 5th year. So in actuality, this daunting figure can be cut in half by the 5th year. Your chances of success are high. 85% of small businesses start-ups will survive their first year. By Your chances of success are high. 85% of small businesses start-ups will survive their first year. By
Your chances of success are high. 85% of small businesses start-ups will survive their first year. By having a clear plan, the right strategy, and focus on your vision you can solidify a path for success at the
having a clear plan, the right strategy, and focus on your vision you can solidify a path for success at the
having a clear plan, the right strategy, and focus on your vision you can solidify a path for success at the early stages of your business. Now ask yourself this, “Do I believe this business can hit that 85% first
early stages of your business. Now ask yourself this, “Do I believe this business can hit that 85% first
early stages of your business. Now ask yourself this, “Do I believe this business can hit that 85% first year survival rate? Can I see this venture continuing to thrive so that I am among 51% survival rate by
year survival rate? Can I see this venture continuing to thrive so that I am among 51% survival rate by
year survival rate? Can I see this venture continuing to thrive so that I am among 51% survival rate by year five?” If the answer is yes, you have some hard work ahead of you.
year five?” If the answer is yes, you have some hard work ahead of you.
year five?” If the answer is yes, you have some hard work ahead of you.
Remember, regardless of the industry you enter, the type or scale of business you attempt – the right Remember, regardless of the industry you enter, the type or scale of business you attempt – the right
Remember, regardless of the industry you enter, the type or scale of business you attempt – the right strategies will assist in your survival in the Canadian marketplace. You need to educate yourself as to
strategies will assist in your survival in the Canadian marketplace. You need to educate yourself as to
strategies will assist in your survival in the Canadian marketplace. You need to educate yourself as to what it really takes for your small business to succeed.
what it really takes for your small business to succeed.
what it really takes for your small business to succeed.
There are two ways to look at survival strategies in the early stages of your business. Both approaches There are two ways to look at survival strategies in the early stages of your business. Both approaches
There are two ways to look at survival strategies in the early stages of your business. Both approaches work-how you elect to move forward is dependent on the type of person you are. Let’s consider these
work-how you elect to move forward is dependent on the type of person you are. Let’s consider these
work-how you elect to move forward is dependent on the type of person you are. Let’s consider these methods now. You may then select which best represents your entrepreneurial style.
methods now. You may then select which best represents your entrepreneurial style. methods now. You may then select which best represents your entrepreneurial style.
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Small Business Startup Guide
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Small Business Startup Guide
The first survival method is:
The first survival method is:
The first survival method is:
Some of the most successful entrepreneurs, when asked the secret to
Some of the most successful entrepreneurs, when asked the secret to
Some of the most successful entrepreneurs, when asked the secret to
their success, all agree that they love what they do, they are pursuing a
their success, all agree that they love what they do, they are pursuing a
their success, all agree that they love what they do, they are pursuing a
lifelong passion. As mentioned earlier, one of the crucial steps in knowing
lifelong passion. As mentioned earlier, one of the crucial steps in knowing
lifelong passion. As mentioned earlier, one of the crucial steps in knowing
✔ FULLY EMBRACE
✔ FULLY EMBRACE
✔ FULLY EMBRACE
whether you have what it takes to become an entrepreneur is a desire to
whether you have what it takes to become an entrepreneur is a desire to
whether you have what it takes to become an entrepreneur is a desire to
WHAT YOU WANT TO
WHAT YOU WANT TO
WHAT YOU WANT TO
do what you love – something that really appeals to you. It is that spark
do what you love – something that really appeals to you. It is that spark
DO DO DO
do what you love – something that really appeals to you. It is that spark that will drive you forward, and work won’t just be work, it will also be
that will drive you forward, and work won’t just be work, it will also be
that will drive you forward, and work won’t just be work, it will also be “fun”.
“fun”.
“fun”.
Fantastic! You are an entrepreneur. But don’t take the title too lightly. In Fantastic! You are an entrepreneur. But don’t take the title too lightly. In Fantastic! You are an entrepreneur. But don’t take the title too lightly. In
✔ PUT IN THE LONG
✔ PUT IN THE LONG
fact, in the initial stages of your business, you and whatever support staff
fact, in the initial stages of your business, you and whatever support staff
✔ PUT IN THE LONG
fact, in the initial stages of your business, you and whatever support staff
HOURS
HOURS HOURS
you can afford will have to give it your all in order to make progress in you can afford will have to give it your all in order to make progress in
you can afford will have to give it your all in order to make progress in your venture. You get out of your business exactly what you invest into it.
your venture. You get out of your business exactly what you invest into it. your venture. You get out of your business exactly what you invest into it.
As with any entrepreneur, you aim to succeed – but in reality becoming a As with any entrepreneur, you aim to succeed – but in reality becoming a
As with any entrepreneur, you aim to succeed – but in reality becoming a millionaire isn’t going to happen overnight. You have to set goals and
millionaire isn’t going to happen overnight. You have to set goals and millionaire isn’t going to happen overnight. You have to set goals and
✔ SET ACHIEVABLE
✔ SET ACHIEVABLE
plan ahead. One way to succeed is to set specific and realistic goals. This
plan ahead. One way to succeed is to set specific and realistic goals. This
✔ SET ACHIEVABLE
plan ahead. One way to succeed is to set specific and realistic goals. This
GOALS
GOALS GOALS
way, you achieve what you planned for, you’re motivated by reaching way, you achieve what you planned for, you’re motivated by reaching
way, you achieve what you planned for, you’re motivated by reaching these landmarks, and you’re invigorated to keep driving forward towards
these landmarks, and you’re invigorated to keep driving forward towards
these landmarks, and you’re invigorated to keep driving forward towards that “big picture”.
that “big picture”.
that “big picture”.
Spending too much time in the planning stages may stall the momentumSpending too much time in the planning stages may stall the momentum
Spending too much time in the planning stages may stall the momentumof your business. This may seem like a contradiction, but to dwell in the
of your business. This may seem like a contradiction, but to dwell in the of your business. This may seem like a contradiction, but to dwell in the
✔ TAKE INITIATIVE AND
✔ TAKE INITIATIVE AND
✔ TAKE INITIATIVE AND
details instead of executing your plan can be very damaging to your
details instead of executing your plan can be very damaging to your
JUST DO IT JUST DO IT JUST DO IT
details instead of executing your plan can be very damaging to your business. So take a breath and take a leap. Give it a shot – follow your
business. So take a breath and take a leap. Give it a shot – follow your
business. So take a breath and take a leap. Give it a shot – follow your instincts.
instincts.
instincts.
Burning the midnight oil when starting a business is a must. But be sure Burning the midnight oil when starting a business is a must. But be sure
Burning the midnight oil when starting a business is a must. But be sure to know the difference between work and home. If you are dedicated to
to know the difference between work and home. If you are dedicated to to know the difference between work and home. If you are dedicated to
✔ MAINTAIN A
✔ MAINTAIN A
your business 24/7, great – most successful entrepreneurs are as well –
your business 24/7, great – most successful entrepreneurs are as well –
✔ MAINTAIN A
your business 24/7, great – most successful entrepreneurs are as well –
but in order to survive past that 5th year you need to maintain a balanced
but in order to survive past that 5th year you need to maintain a balanced
but in order to survive past that 5th year you need to maintain a balanced
WORK/LIFE BALANCE
WORK/LIFE BALANCE
WORK/LIFE BALANCE
and healthy lifestyle. If your home life suffers due to your work, you will
and healthy lifestyle. If your home life suffers due to your work, you will
and healthy lifestyle. If your home life suffers due to your work, you will
eventually feel the effects on your business as well.
eventually feel the effects on your business as well.
eventually feel the effects on your business as well.
Over thinking, over planning and over doing can be more damaging to
Over thinking, over planning and over doing can be more damaging to
Over thinking, over planning and over doing can be more damaging to
✔ KNOW WHEN TO TAKE
✔ KNOW WHEN TO TAKE
your business than you think. It is crucial to have a sit down meeting, an
your business than you think. It is crucial to have a sit down meeting, an
✔ KNOW WHEN TO TAKE
your business than you think. It is crucial to have a sit down meeting, an
A BREAK
A BREAK A BREAK
out of office lunch or to take the day off and refresh and reset yourself out of office lunch or to take the day off and refresh and reset yourself
out of office lunch or to take the day off and refresh and reset yourself and your mind. It will positively impact your overall performance.
and your mind. It will positively impact your overall performance. and your mind. It will positively impact your overall performance.
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Small Business Startup Guide
This first survival method is a great way to see the big picture and to aim towards achieving your This first survival method is a great way to see the big picture and to aim towards achieving your
This first survival method is a great way to see the big picture and to aim towards achieving your lifelong dream of being your own boss. Is it the approach best suited for you? Perhaps. But let’s take a
lifelong dream of being your own boss. Is it the approach best suited for you? Perhaps. But let’s take a
lifelong dream of being your own boss. Is it the approach best suited for you? Perhaps. But let’s take a look at the second survival method to determine which is more relevant for you and your unique
look at the second survival method to determine which is more relevant for you and your unique
look at the second survival method to determine which is more relevant for you and your unique business.
business.
business.
The second survival method is:
The second survival method is:
The second survival method is:
Your business plan is your blueprint for success. Having a
Your business plan is your blueprint for success. Having a
Your business plan is your blueprint for success. Having a
comprehensive business plan will arm your venture with a clear
comprehensive business plan will arm your venture with a clear
comprehensive business plan will arm your venture with a clear
✔ HAVE A SOLID BUSINESS
✔ HAVE A SOLID BUSINESS
✔ HAVE A SOLID BUSINESS
direction. It will contain answers to your daily questions and guide
direction. It will contain answers to your daily questions and guide
PLAN PLAN PLAN
direction. It will contain answers to your daily questions and guide your decision making while you are in the start-up stages. It will also
your decision making while you are in the start-up stages. It will also
your decision making while you are in the start-up stages. It will also help you with the second step of this survival method.
help you with the second step of this survival method.
help you with the second step of this survival method.
In order to start-up your business you must have some sort of capital In order to start-up your business you must have some sort of capital
In order to start-up your business you must have some sort of capital to invest. This capital may come from your personal assets, or life
to invest. This capital may come from your personal assets, or life
to invest. This capital may come from your personal assets, or life savings. It may come from family, friends, or your bank in the form of
savings. It may come from family, friends, or your bank in the form of savings. It may come from family, friends, or your bank in the form of
✔ SECURE FUNDING, OR
✔ SECURE FUNDING, OR
✔ SECURE FUNDING, OR
a grant or a loan. But regardless of the source– you need to have
a grant or a loan. But regardless of the source– you need to have
a grant or a loan. But regardless of the source– you need to have
ACCESS TO FUNDING
ACCESS TO FUNDING
ACCESS TO FUNDING
funding to get started, to move along, and to succeed. Having a
funding to get started, to move along, and to succeed. Having a
funding to get started, to move along, and to succeed. Having a
proper business plan will certainly help you obtain funding from banks,
proper business plan will certainly help you obtain funding from banks,
proper business plan will certainly help you obtain funding from banks,
private investors, or the government of Canada.
private investors, or the government of Canada.
private investors, or the government of Canada.
If you’ve ever worked for somebody else, you’ve either overheard or
If you’ve ever worked for somebody else, you’ve either overheard or
If you’ve ever worked for somebody else, you’ve either overheard or
said these words yourself, “this place would fall apart without me”.
said these words yourself, “this place would fall apart without me”.
said these words yourself, “this place would fall apart without me”.
✔ FIND THE BEST
✔ FIND THE BEST ✔ FIND THE BEST
Sadly, sometimes this is true. It is the employees you are responsible Sadly, sometimes this is true. It is the employees you are responsible Sadly, sometimes this is true. It is the employees you are responsible
EMPLOYEES TO SUPPORT
EMPLOYEES TO SUPPORT
for hiring and training to know your business who may end up making
for hiring and training to know your business who may end up making
EMPLOYEES TO SUPPORT
for hiring and training to know your business who may end up making
YOUR BUSINESS
YOUR BUSINESS
it better. That’s the reason you want them there, and the reason you
it better. That’s the reason you want them there, and the reason you
YOUR BUSINESS
it better. That’s the reason you want them there, and the reason you
hire specifically those individuals. Be sure to surround yourself with
hire specifically those individuals. Be sure to surround yourself with
hire specifically those individuals. Be sure to surround yourself with
the best team to succeed in your business.
the best team to succeed in your business.
the best team to succeed in your business.
Who cares about your business if your customers don’t? As a small
Who cares about your business if your customers don’t? As a small
Who cares about your business if your customers don’t? As a small
business owner, you may not have a boss to report to – however it is
business owner, you may not have a boss to report to – however it is
business owner, you may not have a boss to report to – however it is
✔ LISTEN TO YOUR
✔ LISTEN TO YOUR
wise to treat your customers as were your boss. In reality, you really
wise to treat your customers as were your boss. In reality, you really
✔ LISTEN TO YOUR
wise to treat your customers as were your boss. In reality, you really
CUSTOMERS
CUSTOMERS CUSTOMERS
work for them. If your customers are dissatisfied, you are doing work for them. If your customers are dissatisfied, you are doing
work for them. If your customers are dissatisfied, you are doing something wrong. Be sure to listen to your customers, and give them
something wrong. Be sure to listen to your customers, and give them
something wrong. Be sure to listen to your customers, and give themwhat they want.
what they want.
what they want.
This point really depends on your business model. If you are opening a This point really depends on your business model. If you are opening a
This point really depends on your business model. If you are opening a pizza shop, you most likely want to promote in your neighborhood,
pizza shop, you most likely want to promote in your neighborhood, pizza shop, you most likely want to promote in your neighborhood,
✔ THINK LOCALLY
✔ THINK LOCALLY
city or surrounding area. However, if you are starting an ecommerce
city or surrounding area. However, if you are starting an ecommerce
✔ THINK LOCALLY
city or surrounding area. However, if you are starting an ecommerce
website you will want to think globally. Determining where your
website you will want to think globally. Determining where your
website you will want to think globally. Determining where your
customers are will ultimately assist you in reaching them.
customers are will ultimately assist you in reaching them.
customers are will ultimately assist you in reaching them.
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Small Business Startup Guide
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Small Business Startup Guide
We’ve now reviewed both survival methods. Each can apply to all businesses. But depending on your We’ve now reviewed both survival methods. Each can apply to all businesses. But depending on your
We’ve now reviewed both survival methods. Each can apply to all businesses. But depending on your personality and your business style, you may wish to follow one over the other. Our recommendation is
personality and your business style, you may wish to follow one over the other. Our recommendation is
personality and your business style, you may wish to follow one over the other. Our recommendation is to follow both, as while unique in their own ways, all of the tactics mentioned above can be combined
to follow both, as while unique in their own ways, all of the tactics mentioned above can be combined
to follow both, as while unique in their own ways, all of the tactics mentioned above can be combined into a deluxe survival plan for your small business.
into a deluxe survival plan for your small business.
into a deluxe survival plan for your small business.
What are your odds of success of surviving in business? What are your odds of success of surviving in business? What are your odds of success of surviving in business? When you start out in your own business, if you don’t have a partner or employees, most of the work
When you start out in your own business, if you don’t have a partner or employees, most of the work
When you start out in your own business, if you don’t have a partner or employees, most of the work falls on your plate. You are performing various roles, wearing all of the “different hats”. You are the
falls on your plate. You are performing various roles, wearing all of the “different hats”. You are the
falls on your plate. You are performing various roles, wearing all of the “different hats”. You are the boss, the manager, the front line worker, the marketing director, the sales person, and the accountant.
boss, the manager, the front line worker, the marketing director, the sales person, and the accountant.
boss, the manager, the front line worker, the marketing director, the sales person, and the accountant. You may have the best idea and top notch managerial skills, but how are you at handling the day to day
You may have the best idea and top notch managerial skills, but how are you at handling the day to day
You may have the best idea and top notch managerial skills, but how are you at handling the day to day operations, learning how to market your idea, or generating sales over the phone?
operations, learning how to market your idea, or generating sales over the phone? operations, learning how to market your idea, or generating sales over the phone? It is important to know your own strengths and weaknesses. If you are not qualified to manage a It is important to know your own strengths and weaknesses. If you are not qualified to manage a
It is important to know your own strengths and weaknesses. If you are not qualified to manage a business, this can lead to business failure. Know your weaknesses and work towards improving in those
business, this can lead to business failure. Know your weaknesses and work towards improving in those
business, this can lead to business failure. Know your weaknesses and work towards improving in those areas. A simple course in business management prior to your business’ start-up can propel you in the
areas. A simple course in business management prior to your business’ start-up can propel you in the
areas. A simple course in business management prior to your business’ start-up can propel you in the right direction. When it comes to business, do not be afraid to reach out for help. Assistance is available,
right direction. When it comes to business, do not be afraid to reach out for help. Assistance is available,
right direction. When it comes to business, do not be afraid to reach out for help. Assistance is available, provided locally and by your government to help small business owners and entrepreneurs like yourself.
provided locally and by your government to help small business owners and entrepreneurs like yourself.
provided locally and by your government to help small business owners and entrepreneurs like yourself. Network with others, consult with family and friends – ask for advice and get others’ expertise to ensure
Network with others, consult with family and friends – ask for advice and get others’ expertise to ensure
Network with others, consult with family and friends – ask for advice and get others’ expertise to ensure your personal success.
your personal success.
your personal success.
Simply being interested or excited about what you are doing will increase your odds of success and Simply being interested or excited about what you are doing will increase your odds of success and
Simply being interested or excited about what you are doing will increase your odds of success and drive you forward. The other crucial step is having a business plan. Often companies fail because they
drive you forward. The other crucial step is having a business plan. Often companies fail because they
drive you forward. The other crucial step is having a business plan. Often companies fail because they start-up without a blueprint for their business. They neglect to plan ahead and half way through their
start-up without a blueprint for their business. They neglect to plan ahead and half way through their
start-up without a blueprint for their business. They neglect to plan ahead and half way through their launch they have to stop and say, “What do we do next. Where do we go from here?”
launch they have to stop and say, “What do we do next. Where do we go from here?” launch they have to stop and say, “What do we do next. Where do we go from here?” Sometimes having all that it takes isn’t enough. It is highly recommended you conduct your own Sometimes having all that it takes isn’t enough. It is highly recommended you conduct your own
Sometimes having all that it takes isn’t enough. It is highly recommended you conduct your own research and market analysis before getting your idea off the ground. Why? Consider this scenario.
research and market analysis before getting your idea off the ground. Why? Consider this scenario.
research and market analysis before getting your idea off the ground. Why? Consider this scenario. Let’s say that you and your business partner are great at fixing electronics and small household
Let’s say that you and your business partner are great at fixing electronics and small household
Let’s say that you and your business partner are great at fixing electronics and small household appliances. Your business is focused on this skilled trade – this is what interests you, and it’s what both
appliances. Your business is focused on this skilled trade – this is what interests you, and it’s what both
appliances. Your business is focused on this skilled trade – this is what interests you, and it’s what both of you know. But, in a rapidly evolving market of technology, how do you plan on surviving and what
of you know. But, in a rapidly evolving market of technology, how do you plan on surviving and what
of you know. But, in a rapidly evolving market of technology, how do you plan on surviving and what makes your services stand out? Your plan to fix a toaster for $20 dollars when a new toaster can be
makes your services stand out? Your plan to fix a toaster for $20 dollars when a new toaster can be
makes your services stand out? Your plan to fix a toaster for $20 dollars when a new toaster can be purchased for $20 dollars defeats the purpose of your business. You should always conduct research to
purchased for $20 dollars defeats the purpose of your business. You should always conduct research to
purchased for $20 dollars defeats the purpose of your business. You should always conduct research to identify opportunities in the market. Determine where your services are needed – and what you need to
identify opportunities in the market. Determine where your services are needed – and what you need to
identify opportunities in the market. Determine where your services are needed – and what you need to do differently to be successful. Let the market tell you if you are to succeed or not.
do differently to be successful. Let the market tell you if you are to succeed or not.
do differently to be successful. Let the market tell you if you are to succeed or not.
Okay, okay…give me some survival tips
Okay, okay…give me some survival tips
Okay, okay…give me some survival tips
You want advice from other successful business owners. You want to know what helped them to You want advice from other successful business owners. You want to know what helped them to
You want advice from other successful business owners. You want to know what helped them to succeed.
succeed.
succeed.
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We’ve got just the tips-some key business pointers for you:
We’ve got just the tips-some key business pointers for you:
We’ve got just the tips-some key business pointers for you:
✔ Create a good business and marketing plan including market research and an opportunity ✔ Create a good business and marketing plan including market research and an opportunity
✔ Create a good business and marketing plan including market research and an opportunity analysis
analysis
analysis
✔ Get advice from a lawyer to ensure you are on the right path
✔ Get advice from a lawyer to ensure you are on the right path
✔ Get advice from a lawyer to ensure you are on the right path
✔ Understand your finances and cash flow
✔ Understand your finances and cash flow
✔ Understand your finances and cash flow
✔ Keep track of everything in your business
✔ Keep track of everything in your business
✔ Keep track of everything in your business
✔ Work with your employees
✔ Work with your employees
✔ Work with your employees
✔ Get the talent you need to run your business properly (hire, hire, hire)
✔ Get the talent you need to run your business properly (hire, hire, hire)
✔ Get the talent you need to run your business properly (hire, hire, hire)
✔ Plan your business from start to finish
✔ Plan your business from start to finish
✔ Plan your business from start to finish
✔ Understand your market and have a plan for introduction
✔ Understand your market and have a plan for introduction
✔ Understand your market and have a plan for introduction
✔ Have a unique offering
✔ Have a unique offering
✔ Have a unique offering
✔ Keep a cash reserve for when/if things go south, or potential income downturns ✔ Keep a cash reserve for when/if things go south, or potential income downturns ✔ Keep a cash reserve for when/if things go south, or potential income downturns
If using these helpful tips, you follow the new business survival method, and at the start-up stage you If using these helpful tips, you follow the new business survival method, and at the start-up stage you
If using these helpful tips, you follow the new business survival method, and at the start-up stage you seem to have no luck – you must have a bailout plan. Do you continue trying? Do you give up and say, “I
seem to have no luck – you must have a bailout plan. Do you continue trying? Do you give up and say, “I
seem to have no luck – you must have a bailout plan. Do you continue trying? Do you give up and say, “I surrender?” Do you invest more money at the risk of losing more money? This really depends on your
surrender?” Do you invest more money at the risk of losing more money? This really depends on your
surrender?” Do you invest more money at the risk of losing more money? This really depends on your situation and the type of challenges you’re up against.
situation and the type of challenges you’re up against.
situation and the type of challenges you’re up against.
Here are 7 strategies to consider if all goes south and you aren’t ready to give up:
Here are 7 strategies to consider if all goes south and you aren’t ready to give up:
Here are 7 strategies to consider if all goes south and you aren’t ready to give up:
1. Reinvent your business: Making a small change in your product/service could have a big 1. Reinvent your business: Making a small change in your product/service could have a big
1. Reinvent your business: Making a small change in your product/service could have a big impact on the success of your business and turn things around
impact on the success of your business and turn things around
impact on the success of your business and turn things around
2. Get online: Depending on the type of business, sometimes having online presence is exactly 2. Get online: Depending on the type of business, sometimes having online presence is exactly
2. Get online: Depending on the type of business, sometimes having online presence is exactly what you need – put together a website or engage in social media
what you need – put together a website or engage in social media
what you need – put together a website or engage in social media
3. Get mobile friendly: This may seem excessive, but a large percentage of your potential 3. Get mobile friendly: This may seem excessive, but a large percentage of your potential
3. Get mobile friendly: This may seem excessive, but a large percentage of your potential customers use smart phones. Most web searches happen via Google from our smart phones. Is
customers use smart phones. Most web searches happen via Google from our smart phones. Is
customers use smart phones. Most web searches happen via Google from our smart phones. Is your social profile ready, or is your website mobile friendly?
your social profile ready, or is your website mobile friendly?
your social profile ready, or is your website mobile friendly?
4. Get in touch with competitors, or past customers: If your competitors are successful, learn 4. Get in touch with competitors, or past customers: If your competitors are successful, learn
4. Get in touch with competitors, or past customers: If your competitors are successful, learn from them. What are they doing right, versus what you are doing wrong? Let your customers
from them. What are they doing right, versus what you are doing wrong? Let your customers
from them. What are they doing right, versus what you are doing wrong? Let your customers tell you as well.
tell you as well.
tell you as well.
5. Expand your product/service line: Sometimes what you have just isn’t enough. Giving options 5. Expand your product/service line: Sometimes what you have just isn’t enough. Giving options
5. Expand your product/service line: Sometimes what you have just isn’t enough. Giving options to customers can sometimes get you moving.
to customers can sometimes get you moving.
to customers can sometimes get you moving.
6. Work your contacts: Your friends and family may know someone with a need for what you are 6. Work your contacts: Your friends and family may know someone with a need for what you are
6. Work your contacts: Your friends and family may know someone with a need for what you are offering. Start with that, and join networking groups to get out there more.
offering. Start with that, and join networking groups to get out there more.
offering. Start with that, and join networking groups to get out there more.
7. Prioritize and act: Perhaps the reason you aren’t succeeding yet is because you have too much 7. Prioritize and act: Perhaps the reason you aren’t succeeding yet is because you have too much
7. Prioritize and act: Perhaps the reason you aren’t succeeding yet is because you have too much or too little going on? Simply prioritizing and acting on items can help you obtain achievable
or too little going on? Simply prioritizing and acting on items can help you obtain achievable
or too little going on? Simply prioritizing and acting on items can help you obtain achievable goals.
goals.
goals.
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4. BUYING A BUSINESS OR STARTING YOUR 4. BUYING A BUSINESS OR STARTING YOUR
4. BUYING A BUSINESS OR STARTING YOUR OWN
OWN
OWN
The idea of leaving your safe, secure, comfortable job to be your own boss and to work for yourself is a The idea of leaving your safe, secure, comfortable job to be your own boss and to work for yourself is a
The idea of leaving your safe, secure, comfortable job to be your own boss and to work for yourself is a scary one. Some people are born to be business owners. Others adapt and grow into it. While some are
scary one. Some people are born to be business owners. Others adapt and grow into it. While some are
scary one. Some people are born to be business owners. Others adapt and grow into it. While some are simply not cut out for it. Those who take on the challenge and want to achieve the potential financial
simply not cut out for it. Those who take on the challenge and want to achieve the potential financial
simply not cut out for it. Those who take on the challenge and want to achieve the potential financial freedom of being a small business owner have one of the most difficult decisions to make right of the
freedom of being a small business owner have one of the most difficult decisions to make right of the
freedom of being a small business owner have one of the most difficult decisions to make right of the bat.
bat.
bat.
Do you buy an existing business, or franchise – or do you start from scratch with your own idea? Do you buy an existing business, or franchise – or do you start from scratch with your own idea? Do you buy an existing business, or franchise – or do you start from scratch with your own idea? Starting a small business from scratch can be very overwhelming for a first time entrepreneur. However,
Starting a small business from scratch can be very overwhelming for a first time entrepreneur. However,
Starting a small business from scratch can be very overwhelming for a first time entrepreneur. However, if you have a great idea and the stamina it takes to build a business from the ground up, then starting
if you have a great idea and the stamina it takes to build a business from the ground up, then starting
if you have a great idea and the stamina it takes to build a business from the ground up, then starting your own business is the way to go. On the other hand, if you want to hit the ground running, avoid
your own business is the way to go. On the other hand, if you want to hit the ground running, avoid
your own business is the way to go. On the other hand, if you want to hit the ground running, avoid some of the common pit-falls of business ownership, and skip over the guess work, then buying an
some of the common pit-falls of business ownership, and skip over the guess work, then buying an
some of the common pit-falls of business ownership, and skip over the guess work, then buying an existing business or a proven franchise model is the better choice for you.
existing business or a proven franchise model is the better choice for you.
existing business or a proven franchise model is the better choice for you.
Pros and cons of starting your own business
Pros and cons of starting your own business
Pros and cons of starting your own business
Take a look at both the pros and cons of starting your own business and decide for yourself if starting Take a look at both the pros and cons of starting your own business and decide for yourself if starting
Take a look at both the pros and cons of starting your own business and decide for yourself if starting your own business is the right fit for you.
your own business is the right fit for you.
your own business is the right fit for you.
THE PROS OF STARTING YOUR OWN
THE PROS OF STARTING YOUR OWN
THE CONS OF STARTING YOUR OWN
THE CONS OF STARTING YOUR OWN
THE PROS OF STARTING YOUR OWN
THE CONS OF STARTING YOUR OWN
BUSINESS INCLUDE:
BUSINESS INCLUDE:
BUSINESS INCLUDE:
∙ The ultimate freedom of managing, ∙ The ultimate freedom of managing,
∙ The ultimate freedom of managing, designing and operating your business as
designing and operating your business as
designing and operating your business as you see fit
you see fit
you see fit
∙ You are not bound by any rules set by a ∙ You are not bound by any rules set by a
∙ You are not bound by any rules set by a higher up or parent company
higher up or parent company
higher up or parent company
∙ You are starting fresh, meaning you don’t ∙ You are starting fresh, meaning you don’t
∙ You are starting fresh, meaning you don’t have to meet expectations based on
have to meet expectations based on
have to meet expectations based on historical data
historical data
historical data
BUSINESS INCLUDE:
BUSINESS INCLUDE:
BUSINESS INCLUDE:
∙ You do have to start from scratch. You have ∙ You do have to start from scratch. You have
∙ You do have to start from scratch. You have to bring your idea to life
to bring your idea to life
to bring your idea to life
∙ There is no guarantee of it ever taking off ∙ There is no guarantee of it ever taking off
∙ There is no guarantee of it ever taking off and working
and working
and working
∙ The rate of failure for starting a small ∙ The rate of failure for starting a small
∙ The rate of failure for starting a small business is high
business is high
business is high
∙ It can be difficult to obtain financing to fund ∙ It can be difficult to obtain financing to fund
∙ It can be difficult to obtain financing to fund your venture without a proven track record
your venture without a proven track record
your venture without a proven track record ∙ Everything is dependent on you
∙ Everything is dependent on you ∙ Everything is dependent on you
∙ You have the opportunity to build a new
∙ You have the opportunity to build a new
∙ You have the opportunity to build a new
niche, new market and possibly a well-
niche, new market and possibly a well-
niche, new market and possibly a well-
known brand
known brand
known brand
∙ Starting your own is often less expensive
∙ Starting your own is often less expensive
∙ Starting your own is often less expensive
than buying a pre-existing business or
than buying a pre-existing business or
than buying a pre-existing business or
franchise
franchise
franchise
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Starting your own business has benefits but also drawbacks. However, those who see advantages over Starting your own business has benefits but also drawbacks. However, those who see advantages over
Starting your own business has benefits but also drawbacks. However, those who see advantages over disadvantages and follow a well formulated plan end up succeeding, reaping the rewards of being their
disadvantages and follow a well formulated plan end up succeeding, reaping the rewards of being their
disadvantages and follow a well formulated plan end up succeeding, reaping the rewards of being their own boss.
own boss.
own boss.
Pros and cons of buying an existing business or franchise Pros and cons of buying an existing business or franchise Pros and cons of buying an existing business or franchise
Buying an existing small business or a reputable franchise is often less of a gamble. Why is this? Well, an Buying an existing small business or a reputable franchise is often less of a gamble. Why is this? Well, an
Buying an existing small business or a reputable franchise is often less of a gamble. Why is this? Well, an existing business offered for sale will have a financial history for you to go back and review. Not only
existing business offered for sale will have a financial history for you to go back and review. Not only
existing business offered for sale will have a financial history for you to go back and review. Not only that, but you are also generating revenue the moment you start, since the business is up and running.
that, but you are also generating revenue the moment you start, since the business is up and running. that, but you are also generating revenue the moment you start, since the business is up and running. A franchise model is similar. It may take some time to set up your location. But franchising follows a A franchise model is similar. It may take some time to set up your location. But franchising follows a
A franchise model is similar. It may take some time to set up your location. But franchising follows a reputable formula offered for a cost with all-inclusive service to make it function uniformly within the
reputable formula offered for a cost with all-inclusive service to make it function uniformly within the
reputable formula offered for a cost with all-inclusive service to make it function uniformly within the franchise group. With a franchise you will be generating revenue the moment you open for business.
franchise group. With a franchise you will be generating revenue the moment you open for business. franchise group. With a franchise you will be generating revenue the moment you open for business. Take a look at the pros and cons of buying a business or franchise and decide for yourself whether it is Take a look at the pros and cons of buying a business or franchise and decide for yourself whether it is
Take a look at the pros and cons of buying a business or franchise and decide for yourself whether it is the right fit for you.
the right fit for you.
the right fit for you.
THE PROS OF BUYING AN EXISTING
THE PROS OF BUYING AN EXISTING
THE PROS OF BUYING AN EXISTING BUSINESS OR FRANCHISE INCLUDE:
BUSINESS OR FRANCHISE INCLUDE: BUSINESS OR FRANCHISE INCLUDE:
THE CONS OF BUYING AN EXISTING THE CONS OF BUYING AN EXISTING
THE CONS OF BUYING AN EXISTING BUSINESS OR FRANCHISE INCLUDE:
BUSINESS OR FRANCHISE INCLUDE: BUSINESS OR FRANCHISE INCLUDE:
∙ The initial investment is much greater than ∙ The initial investment is much greater than ∙ The initial investment is much greater than
∙ The pre-existing business or franchise has a ∙ The pre-existing business or franchise has a
∙ The pre-existing business or franchise has a history. Much of the work has already been
history. Much of the work has already been history. Much of the work has already been
starting your own business starting your own business starting your own business
done for you. done for you. done for you.
∙ The previous owner’s style of doing ∙ The previous owner’s style of doing
∙ The previous owner’s style of doing business may not match yours
business may not match yours
∙ You have a chance to build upon existing ∙ You have a chance to build upon existing ∙ You have a chance to build upon existing
business may not match yours
∙ You may be unfamiliar with the business
∙ You may be unfamiliar with the business
∙ You may be unfamiliar with the business
customer relationships and grow the brand
customer relationships and grow the brand
customer relationships and grow the brand ∙ There is a developed business process and
∙ There is a developed business process and ∙ There is a developed business process and
due to lack of knowledge or experience due to lack of knowledge or experience due to lack of knowledge or experience
acquisition of existing assets
acquisition of existing assets
acquisition of existing assets
∙ You will start generating income almost ∙ You will start generating income almost
∙ You will start generating income almost instantly
instantly
instantly
∙ As a franchisee, the parent corporation has ∙ As a franchisee, the parent corporation has
∙ As a franchisee, the parent corporation has authority over you
authority over you
authority over you
∙ You may be limited as to how the business ∙ You may be limited as to how the business
∙ You may be limited as to how the business may be altered or improved from your
may be altered or improved from your
∙ It will be easier to secure financing due to ∙ It will be easier to secure financing due to
∙ It will be easier to secure financing due to the history and pre-existing credit on the
the history and pre-existing credit on the
the history and pre-existing credit on the business name
business name
business name
∙ Often, a business or franchise model is ∙ Often, a business or franchise model is
∙ Often, a business or franchise model is proven effective translating to lower risk
proven effective translating to lower risk proven effective translating to lower risk
may be altered or improved from your perspective
perspective
perspective
Buying an existing business or franchise has its own benefits and drawbacks. But on the whole, you are Buying an existing business or franchise has its own benefits and drawbacks. But on the whole, you are
Buying an existing business or franchise has its own benefits and drawbacks. But on the whole, you are buying into something that is existing and profitable. If your goal is to earn an income as soon as
buying into something that is existing and profitable. If your goal is to earn an income as soon as
buying into something that is existing and profitable. If your goal is to earn an income as soon as possible, this is the option for you. If you are more inclined to start an idea from the ground up, making
possible, this is the option for you. If you are more inclined to start an idea from the ground up, making
possible, this is the option for you. If you are more inclined to start an idea from the ground up, making it your own and building it to fit your style, starting your very own small business is the right choice for
it your own and building it to fit your style, starting your very own small business is the right choice for
it your own and building it to fit your style, starting your very own small business is the right choice for you.
you.
you.
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Either way, research into both is necessary to deliver you to the correct strategy. If you decide on Either way, research into both is necessary to deliver you to the correct strategy. If you decide on
Either way, research into both is necessary to deliver you to the correct strategy. If you decide on starting from scratch, your next step is to develop your idea. If you are proceeding with the idea of
starting from scratch, your next step is to develop your idea. If you are proceeding with the idea of
starting from scratch, your next step is to develop your idea. If you are proceeding with the idea of buying an existing business, be sure to review the idea, the business plan, and create your own business
buying an existing business, be sure to review the idea, the business plan, and create your own business
buying an existing business, be sure to review the idea, the business plan, and create your own business plan for future growth.
plan for future growth.
plan for future growth.
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5. DEVELOPING YOUR IDEA
5. DEVELOPING YOUR IDEA
5. DEVELOPING YOUR IDEA
Once you have decided to become an entrepreneur and you want to start from scratch, you must take Once you have decided to become an entrepreneur and you want to start from scratch, you must take
Once you have decided to become an entrepreneur and you want to start from scratch, you must take some time to develop your idea. One of the advantages of being an independent business owner is that
some time to develop your idea. One of the advantages of being an independent business owner is that
some time to develop your idea. One of the advantages of being an independent business owner is that you actually have the option of doing something that you love and that genuinely interests you.
you actually have the option of doing something that you love and that genuinely interests you. you actually have the option of doing something that you love and that genuinely interests you. Keep in mind that something that interests you doesn’t always equal instant success. The key to Keep in mind that something that interests you doesn’t always equal instant success. The key to
Keep in mind that something that interests you doesn’t always equal instant success. The key to success is developing your idea into a profitable business through research.
success is developing your idea into a profitable business through research.
success is developing your idea into a profitable business through research.
Before you start your business, you must conduct research in order to turn your idea into a reality. It is Before you start your business, you must conduct research in order to turn your idea into a reality. It is
Before you start your business, you must conduct research in order to turn your idea into a reality. It is important to gather as much information as possible about the industry, the demand for your product,
important to gather as much information as possible about the industry, the demand for your product,
important to gather as much information as possible about the industry, the demand for your product, the needs for your service, the state of the market itself, your potential customer base, your potential
the needs for your service, the state of the market itself, your potential customer base, your potential
the needs for your service, the state of the market itself, your potential customer base, your potential competitors, and any other relevant statistics.
competitors, and any other relevant statistics.
competitors, and any other relevant statistics.
With all of this information collected, you will be armed with the knowledge necessary to evaluate the With all of this information collected, you will be armed with the knowledge necessary to evaluate the
With all of this information collected, you will be armed with the knowledge necessary to evaluate the likelihood of success turning your idea into a viable business. Consider some of these points when
likelihood of success turning your idea into a viable business. Consider some of these points when
likelihood of success turning your idea into a viable business. Consider some of these points when researching and developing your small business idea:
researching and developing your small business idea:
researching and developing your small business idea:
Is your idea unique?
Is your idea unique?
Is your idea unique?
Are you reinventing the wheel so to speak, or are you starting from scratch? This is an important Are you reinventing the wheel so to speak, or are you starting from scratch? This is an important
Are you reinventing the wheel so to speak, or are you starting from scratch? This is an important question to answer before you start out in business.
question to answer before you start out in business.
question to answer before you start out in business.
There are a few different options when it comes to developing your idea.
There are a few different options when it comes to developing your idea.
There are a few different options when it comes to developing your idea.
The first option is to take an existing product or service and add your own twist making it unique and The first option is to take an existing product or service and add your own twist making it unique and
The first option is to take an existing product or service and add your own twist making it unique and specialized. A good example of this would be a child daycare center offering a live video/audio feed to
specialized. A good example of this would be a child daycare center offering a live video/audio feed to
specialized. A good example of this would be a child daycare center offering a live video/audio feed to parents through an app or website so they may check on their little ones throughout the day. Child care
parents through an app or website so they may check on their little ones throughout the day. Child care
parents through an app or website so they may check on their little ones throughout the day. Child care centers are a necessity but part of a massive industry. If you think about it, every Canadian city will have
centers are a necessity but part of a massive industry. If you think about it, every Canadian city will have
centers are a necessity but part of a massive industry. If you think about it, every Canadian city will have thousands of options for working parents. By offering parents piece of mind through online access to
thousands of options for working parents. By offering parents piece of mind through online access to
thousands of options for working parents. By offering parents piece of mind through online access to their children, you are standing out from the competition adding extra value to your service in a unique
their children, you are standing out from the competition adding extra value to your service in a unique
their children, you are standing out from the competition adding extra value to your service in a unique and marketable way.
and marketable way.
and marketable way.
The second option is to take an existing product or service, copy it but apply your own unique branding. The second option is to take an existing product or service, copy it but apply your own unique branding.
The second option is to take an existing product or service, copy it but apply your own unique branding. How does this differ from the first? Well, let’s use the chewing gum industry as an example.
How does this differ from the first? Well, let’s use the chewing gum industry as an example. How does this differ from the first? Well, let’s use the chewing gum industry as an example. You have a multitude of different varieties of chewing gum at every cash register in every store around You have a multitude of different varieties of chewing gum at every cash register in every store around
You have a multitude of different varieties of chewing gum at every cash register in every store around Canada. They are all similar in certain respects- white, minty, packaged the same, same price range.
Canada. They are all similar in certain respects- white, minty, packaged the same, same price range.
Canada. They are all similar in certain respects- white, minty, packaged the same, same price range. But new brands of chewing gum are constantly hitting the shelves and capturing a small percentage of
But new brands of chewing gum are constantly hitting the shelves and capturing a small percentage of
But new brands of chewing gum are constantly hitting the shelves and capturing a small percentage of the market.
the market.
the market.
Why is that you ask? Well, the market for chewing gum and confections is huge. This means that there Why is that you ask? Well, the market for chewing gum and confections is huge. This means that there
Why is that you ask? Well, the market for chewing gum and confections is huge. This means that there is enough market share for nearly everyone. The only difference is that here you can use marketing and
is enough market share for nearly everyone. The only difference is that here you can use marketing and
is enough market share for nearly everyone. The only difference is that here you can use marketing and promotional tactics to make your gum stand out from the rest. Response to these tactics is how the
promotional tactics to make your gum stand out from the rest. Response to these tactics is how the
promotional tactics to make your gum stand out from the rest. Response to these tactics is how the consumer opts for one brand over the other.
consumer opts for one brand over the other.
consumer opts for one brand over the other.
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The third option is to start from scratch and come up with a brand new idea that nobody has ever The third option is to start from scratch and come up with a brand new idea that nobody has ever
The third option is to start from scratch and come up with a brand new idea that nobody has ever thought of before. This type of idea usually ends up being the most lucrative, but at the same time
thought of before. This type of idea usually ends up being the most lucrative, but at the same time
thought of before. This type of idea usually ends up being the most lucrative, but at the same time difficult to execute.
difficult to execute.
difficult to execute.
Think about YouTube before it launched. No service existed like it on a similar scale or even close to it. Think about YouTube before it launched. No service existed like it on a similar scale or even close to it.
Think about YouTube before it launched. No service existed like it on a similar scale or even close to it. However, the company that started YouTube had a unique idea, built it up from scratch and today it’s
However, the company that started YouTube had a unique idea, built it up from scratch and today it’s
However, the company that started YouTube had a unique idea, built it up from scratch and today it’s worth billions of dollars and is used all over the world. At the same time, there have been countless
worth billions of dollars and is used all over the world. At the same time, there have been countless
worth billions of dollars and is used all over the world. At the same time, there have been countless ideas built from scratch that never catch on, failing miserably.
ideas built from scratch that never catch on, failing miserably.
ideas built from scratch that never catch on, failing miserably.
The key is to have a unique idea. It doesn’t have to be original, but it needs to be supported by research. The key is to have a unique idea. It doesn’t have to be original, but it needs to be supported by research. The key is to have a unique idea. It doesn’t have to be original, but it needs to be supported by research.
Will anybody buy what you are selling?
Will anybody buy what you are selling?
Will anybody buy what you are selling?
You can have the idea of a lifetime – an idea so great that everybody in your family loves it and You can have the idea of a lifetime – an idea so great that everybody in your family loves it and
You can have the idea of a lifetime – an idea so great that everybody in your family loves it and encourages you to move forward with it. But a great idea that a few people love doesn’t always mean
encourages you to move forward with it. But a great idea that a few people love doesn’t always mean
encourages you to move forward with it. But a great idea that a few people love doesn’t always mean that everyone will receptive to it, or that you can turn it into a profitable and successful business.
that everyone will receptive to it, or that you can turn it into a profitable and successful business. that everyone will receptive to it, or that you can turn it into a profitable and successful business. So how do you figure out if somebody will be buying what you are trying to sell? So how do you figure out if somebody will be buying what you are trying to sell? So how do you figure out if somebody will be buying what you are trying to sell? First, you will need to conduct the appropriate research and see if a similar idea, product or service First, you will need to conduct the appropriate research and see if a similar idea, product or service
First, you will need to conduct the appropriate research and see if a similar idea, product or service already exists on the market. Think about the following questions. Who is your audience? Will it be
already exists on the market. Think about the following questions. Who is your audience? Will it be
already exists on the market. Think about the following questions. Who is your audience? Will it be mostly men, women, children or appealing to all consumers? Is the product or service you intend to
mostly men, women, children or appealing to all consumers? Is the product or service you intend to
mostly men, women, children or appealing to all consumers? Is the product or service you intend to offering a necessity or a luxury item? Will you sell to consumers or to businesses? Would you yourself
offering a necessity or a luxury item? Will you sell to consumers or to businesses? Would you yourself
offering a necessity or a luxury item? Will you sell to consumers or to businesses? Would you yourself buy it and why?
buy it and why?
buy it and why?
Spend some time researching and answering these questions. When you do so, you will gain insight Spend some time researching and answering these questions. When you do so, you will gain insight
Spend some time researching and answering these questions. When you do so, you will gain insight into your target audience and what your chances of success with a given product or service will be.
into your target audience and what your chances of success with a given product or service will be. into your target audience and what your chances of success with a given product or service will be. Once you know who you are going to sell to, you will want to find out if anybody is actually going to buy Once you know who you are going to sell to, you will want to find out if anybody is actually going to buy
Once you know who you are going to sell to, you will want to find out if anybody is actually going to buy what you are selling. How to do gauge this? Sometimes it can be simple as speaking to people,
what you are selling. How to do gauge this? Sometimes it can be simple as speaking to people,
what you are selling. How to do gauge this? Sometimes it can be simple as speaking to people, conducting surveys, passing out samples, or researching your competition and seeing how successful
conducting surveys, passing out samples, or researching your competition and seeing how successful
conducting surveys, passing out samples, or researching your competition and seeing how successful they are and why?
they are and why?
they are and why?
If the product or service you are offering doesn’t seem to be working out, you are still in the early stages If the product or service you are offering doesn’t seem to be working out, you are still in the early stages
If the product or service you are offering doesn’t seem to be working out, you are still in the early stages where you can adjust and modify to make improvements.
where you can adjust and modify to make improvements.
where you can adjust and modify to make improvements.
Just keep in mind that research is imperative. The more you know, the better you can do business. Just keep in mind that research is imperative. The more you know, the better you can do business. Just keep in mind that research is imperative. The more you know, the better you can do business.
Who are your customers?
Who are your customers?
Who are your customers?
Earlier, we mentioned researching your audience. Before you actually move forward with your idea and Earlier, we mentioned researching your audience. Before you actually move forward with your idea and
Earlier, we mentioned researching your audience. Before you actually move forward with your idea and start building your business plan, it’s very important to figure out in detail who you are selling to. A
start building your business plan, it’s very important to figure out in detail who you are selling to. A
start building your business plan, it’s very important to figure out in detail who you are selling to. A large number of businesses fail due to the lack of research into their target customers – being too broad
large number of businesses fail due to the lack of research into their target customers – being too broad
large number of businesses fail due to the lack of research into their target customers – being too broad or too specific.
or too specific.
or too specific.
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When creating your customer profile, it is recommended to define the customer by their demographic When creating your customer profile, it is recommended to define the customer by their demographic
When creating your customer profile, it is recommended to define the customer by their demographic characteristics such as:
characteristics such as:
characteristics such as:
∙ Their age-not just children, adult, and senior – but by age range as well
∙ Their age-not just children, adult, and senior – but by age range as well
∙ Their age-not just children, adult, and senior – but by age range as well
∙ Sex- male or female
∙ Sex- male or female
∙ Sex- male or female
∙ Marital status- married, single, or divorced
∙ Marital status- married, single, or divorced
∙ Marital status- married, single, or divorced
∙ Location- often the key to a physical store-front operation
∙ Location- often the key to a physical store-front operation
∙ Location- often the key to a physical store-front operation
∙ Family size
∙ Family size
∙ Family size
∙ Income- how much money is available to be spent
∙ Income- how much money is available to be spent
∙ Income- how much money is available to be spent
∙ Education level
∙ Education level
∙ Education level
∙ Occupation- will determine annual and expendable income
∙ Occupation- will determine annual and expendable income
∙ Occupation- will determine annual and expendable income
∙ Interests- contributes to the purchasing profile
∙ Interests- contributes to the purchasing profile
∙ Interests- contributes to the purchasing profile
∙ Culture, ethnicity, and religion
∙ Culture, ethnicity, and religion
∙ Culture, ethnicity, and religion
Each of these characteristics play a major part in whether your products and services will be considered. Each of these characteristics play a major part in whether your products and services will be considered.
Each of these characteristics play a major part in whether your products and services will be considered. Be sure to make it a point to research each point in depth.
Be sure to make it a point to research each point in depth.
Be sure to make it a point to research each point in depth.
Let’s take a quick look at one example of how demographic characteristics may play an important role Let’s take a quick look at one example of how demographic characteristics may play an important role
Let’s take a quick look at one example of how demographic characteristics may play an important role in where you start your business – and how researching is key to success.
in where you start your business – and how researching is key to success.
in where you start your business – and how researching is key to success.
Consider that you are starting a business, opening a high end boutique selling luxury jewelry pieces. Consider that you are starting a business, opening a high end boutique selling luxury jewelry pieces.
Consider that you are starting a business, opening a high end boutique selling luxury jewelry pieces. Your target audience is both male and female, single, married or divorced and ranging in age from 25 to
Your target audience is both male and female, single, married or divorced and ranging in age from 25 to
Your target audience is both male and female, single, married or divorced and ranging in age from 25 to 65 with an approximate family income of more than 100k. Great, you have identified your ideal
65 with an approximate family income of more than 100k. Great, you have identified your ideal
65 with an approximate family income of more than 100k. Great, you have identified your ideal customer. All the research you’ve done points to the above and you say to yourself, I’ve got it, I don’t
customer. All the research you’ve done points to the above and you say to yourself, I’ve got it, I don’t
customer. All the research you’ve done points to the above and you say to yourself, I’ve got it, I don’t need to research further. Now, you find a location for your boutique, what seems to be a perfect
need to research further. Now, you find a location for your boutique, what seems to be a perfect
need to research further. Now, you find a location for your boutique, what seems to be a perfect storefront- large showroom, affordable rent, lots of foot traffic. It seems perfect! However, the lack of
storefront- large showroom, affordable rent, lots of foot traffic. It seems perfect! However, the lack of
storefront- large showroom, affordable rent, lots of foot traffic. It seems perfect! However, the lack of research into the location, average income, education level, and occupation for the area has kicked in.
research into the location, average income, education level, and occupation for the area has kicked in. research into the location, average income, education level, and occupation for the area has kicked in. Your boutique that caters to people who make over $100k per year is now located in an area with high Your boutique that caters to people who make over $100k per year is now located in an area with high
Your boutique that caters to people who make over $100k per year is now located in an area with high levels of unemployment, limited income, and a rising crime rate.
levels of unemployment, limited income, and a rising crime rate.
levels of unemployment, limited income, and a rising crime rate.
Your business is destined to fail due to a lack of research.
Your business is destined to fail due to a lack of research.
Your business is destined to fail due to a lack of research.
Once you’ve completed your customer profile and you feel comfortable that you know who your Once you’ve completed your customer profile and you feel comfortable that you know who your
Once you’ve completed your customer profile and you feel comfortable that you know who your audience is, you must research to find out what their needs and wants are. Ask the following questions
audience is, you must research to find out what their needs and wants are. Ask the following questions
audience is, you must research to find out what their needs and wants are. Ask the following questions to get a clear picture:
to get a clear picture:
to get a clear picture:
∙ What are some of the challenges your customers face which your product or service could help ∙ What are some of the challenges your customers face which your product or service could help
∙ What are some of the challenges your customers face which your product or service could help them resolve?
them resolve?
them resolve?
∙ What are the customers’ needs and expectations regarding your products and services? ∙ What are the customers’ needs and expectations regarding your products and services?
∙ What are the customers’ needs and expectations regarding your products and services? ∙ What do your customers want?
∙ What do your customers want?
∙ What do your customers want?
∙ What do your customers spend their money on?
∙ What do your customers spend their money on?
∙ What do your customers spend their money on?
∙ Where do your customers shop?
∙ Where do your customers shop?
∙ Where do your customers shop?
∙ How do your customers make their spending decisions?
∙ How do your customers make their spending decisions?
∙ How do your customers make their spending decisions?
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These are just a few questions you can use towards developing a better customer profile, ensuring your These are just a few questions you can use towards developing a better customer profile, ensuring your
These are just a few questions you can use towards developing a better customer profile, ensuring your business succeeds with a quality product or service.
business succeeds with a quality product or service.
business succeeds with a quality product or service.
What is your plan for producing your product or service? What is your plan for producing your product or service? What is your plan for producing your product or service?
Having an idea is great, but manufacturing the product or producing the service is another challenging Having an idea is great, but manufacturing the product or producing the service is another challenging
Having an idea is great, but manufacturing the product or producing the service is another challenging task.
task.
task.
Is it even possible?
Is it even possible?
Is it even possible?
When the time comes for you to turn your idea into a reality and a usable product or service, you must When the time comes for you to turn your idea into a reality and a usable product or service, you must
When the time comes for you to turn your idea into a reality and a usable product or service, you must decide on the development process. Here you have a few options.
decide on the development process. Here you have a few options.
decide on the development process. Here you have a few options.
Your first option is to take it all in-house and do it yourself. This means, develop the product, the Your first option is to take it all in-house and do it yourself. This means, develop the product, the
Your first option is to take it all in-house and do it yourself. This means, develop the product, the packaging, and the distribution. Often this is a very expensive option. But at the time, if you are starting
packaging, and the distribution. Often this is a very expensive option. But at the time, if you are starting
packaging, and the distribution. Often this is a very expensive option. But at the time, if you are starting out solo, it may be the only option.
out solo, it may be the only option.
out solo, it may be the only option.
This option is a very complex one to take on. Think
This option is a very complex one to take on. Think
This option is a very complex one to take on. Think
about it, you are starting out in business and have
about it, you are starting out in business and have
about it, you are starting out in business and have
hundreds of things to organize. Adding this kind of
hundreds of things to organize. Adding this kind of
hundreds of things to organize. Adding this kind of
task on top could slow you down in other aspects
task on top could slow you down in other aspects
task on top could slow you down in other aspects
of your business. Plus, most business owners are
of your business. Plus, most business owners are
of your business. Plus, most business owners are
not skilled at product development and distribution
not skilled at product development and distribution
not skilled at product development and distribution
– instead they want to run the business with the
– instead they want to run the business with the
– instead they want to run the business with the
products already supplied.
products already supplied.
products already supplied.
Take a look at Amazon. Amazon sells millions of
Take a look at Amazon. Amazon sells millions of
Take a look at Amazon. Amazon sells millions of
products every day all over the world – and simply
products every day all over the world – and simply
products every day all over the world – and simply
ships the items. Imagine that Amazon had to also produce the products they sell and ship. What a huge ships the items. Imagine that Amazon had to also produce the products they sell and ship. What a huge
ships the items. Imagine that Amazon had to also produce the products they sell and ship. What a huge undertaking!
undertaking!
undertaking!
Your second option is to fragment the process and hire either one or multiple companies to take care of Your second option is to fragment the process and hire either one or multiple companies to take care of
Your second option is to fragment the process and hire either one or multiple companies to take care of the product development, manufacturing and distribution for you. It may cost you, and you may need
the product development, manufacturing and distribution for you. It may cost you, and you may need
the product development, manufacturing and distribution for you. It may cost you, and you may need to sign some paper work, but in the long run, it’s one less thing to worry about. Think of it this way,
to sign some paper work, but in the long run, it’s one less thing to worry about. Think of it this way,
to sign some paper work, but in the long run, it’s one less thing to worry about. Think of it this way, those manufacturers are great at what they do. Why do you need to learn manufacturing techniques to
those manufacturers are great at what they do. Why do you need to learn manufacturing techniques to
those manufacturers are great at what they do. Why do you need to learn manufacturing techniques to run a business that has nothing to with that?
run a business that has nothing to with that?
run a business that has nothing to with that?
On the other hand, you may be a manufacturer and that may be your business. This means that you On the other hand, you may be a manufacturer and that may be your business. This means that you
On the other hand, you may be a manufacturer and that may be your business. This means that you may want to mass produce products and sell them to retailers who will distribute them for you. Maybe
may want to mass produce products and sell them to retailers who will distribute them for you. Maybe
may want to mass produce products and sell them to retailers who will distribute them for you. Maybe you aren’t in business to sell one item at a time, but instead want to license your idea to others.
you aren’t in business to sell one item at a time, but instead want to license your idea to others. you aren’t in business to sell one item at a time, but instead want to license your idea to others. If that is the case, you may consider learning more about licensing your intellectual property and If that is the case, you may consider learning more about licensing your intellectual property and
If that is the case, you may consider learning more about licensing your intellectual property and collecting royalties. Licensing agreements vary from deal to deal, product to product, idea to idea. Your
collecting royalties. Licensing agreements vary from deal to deal, product to product, idea to idea. Your
collecting royalties. Licensing agreements vary from deal to deal, product to product, idea to idea. Your best bet is to research similar ideas and gather information on moving forward. Our recommendation is
best bet is to research similar ideas and gather information on moving forward. Our recommendation is best bet is to research similar ideas and gather information on moving forward. Our recommendation is
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to speak to a business lawyer and consider hiring an expert to help you get the most out of your to speak to a business lawyer and consider hiring an expert to help you get the most out of your
to speak to a business lawyer and consider hiring an expert to help you get the most out of your licensing agreements.
licensing agreements.
licensing agreements.
What is your marketing and promotion plan?
What is your marketing and promotion plan?
What is your marketing and promotion plan?
The third most important step after researching and manufacturing your idea is knowing how you plan The third most important step after researching and manufacturing your idea is knowing how you plan
The third most important step after researching and manufacturing your idea is knowing how you plan on promoting your product or service to your target audience.
on promoting your product or service to your target audience.
on promoting your product or service to your target audience.
Your idea is not very useful without customers willing to buy it. How do you plan on having your Your idea is not very useful without customers willing to buy it. How do you plan on having your
Your idea is not very useful without customers willing to buy it. How do you plan on having your customers find the product or service you are offering? Consider building a full blown marketing plan.
customers find the product or service you are offering? Consider building a full blown marketing plan.
customers find the product or service you are offering? Consider building a full blown marketing plan. Take a look at our suggestions in the business plan and marketing plan section of the guide for
Take a look at our suggestions in the business plan and marketing plan section of the guide for
Take a look at our suggestions in the business plan and marketing plan section of the guide for additional advice.
additional advice.
additional advice.
For now, some ideas which may help you promote your products and services to your target audience For now, some ideas which may help you promote your products and services to your target audience
For now, some ideas which may help you promote your products and services to your target audience may include:
may include:
may include:
∙ Having a dedicated website for your company, brand, product, or service ∙ Having a dedicated website for your company, brand, product, or service
∙ Having a dedicated website for your company, brand, product, or service ∙ Being active online and on social media websites
∙ Being active online and on social media websites
∙ Being active online and on social media websites
∙ Participating in events and trade shows where your audience is visible
∙ Participating in events and trade shows where your audience is visible
∙ Participating in events and trade shows where your audience is visible
∙ Placing advertisements in newspapers, magazines, radio and tv, online, and on social media ∙ Placing advertisements in newspapers, magazines, radio and tv, online, and on social media
∙ Placing advertisements in newspapers, magazines, radio and tv, online, and on social media sites
sites
sites
Again, these are just a few basic suggestions for getting your business’ products and services promoted. Again, these are just a few basic suggestions for getting your business’ products and services promoted.
Again, these are just a few basic suggestions for getting your business’ products and services promoted. To get a broader idea, refer to the promoting and advertising your business section of our guide.
To get a broader idea, refer to the promoting and advertising your business section of our guide. To get a broader idea, refer to the promoting and advertising your business section of our guide.
What else do you need to know?
What else do you need to know?
What else do you need to know?
Before you move on with your business idea, you may want to double check to see if there are any Before you move on with your business idea, you may want to double check to see if there are any
Before you move on with your business idea, you may want to double check to see if there are any business regulations and/or restrictions which may apply to your idea. Contacting your local
business regulations and/or restrictions which may apply to your idea. Contacting your local
business regulations and/or restrictions which may apply to your idea. Contacting your local government or small business office may be a good idea to learn about obtaining permits, licenses, and
government or small business office may be a good idea to learn about obtaining permits, licenses, and
government or small business office may be a good idea to learn about obtaining permits, licenses, and to confirm you’ve abided by all of the applicable regulations.
to confirm you’ve abided by all of the applicable regulations.
to confirm you’ve abided by all of the applicable regulations.
We also recommend you take a look at the business advisors section in order to obtain external help for We also recommend you take a look at the business advisors section in order to obtain external help for
We also recommend you take a look at the business advisors section in order to obtain external help for ensuring your business is on the right path.
ensuring your business is on the right path.
ensuring your business is on the right path.
Once you’ve completed your research and are ready to move forward to the actual business planning Once you’ve completed your research and are ready to move forward to the actual business planning
Once you’ve completed your research and are ready to move forward to the actual business planning stage, take a minute to consider the type of business you plan on starting. This doesn’t mean what idea
stage, take a minute to consider the type of business you plan on starting. This doesn’t mean what idea
stage, take a minute to consider the type of business you plan on starting. This doesn’t mean what idea you plan on turning into a business, but the actual legal form of business you plan on venturing into.
you plan on turning into a business, but the actual legal form of business you plan on venturing into. you plan on turning into a business, but the actual legal form of business you plan on venturing into. Your options when starting a small business in Canada include; starting out in sole proprietorship, a Your options when starting a small business in Canada include; starting out in sole proprietorship, a
Your options when starting a small business in Canada include; starting out in sole proprietorship, a partnership, as a corporation, or perhaps you are considering a non-profit organization? Read on to
partnership, as a corporation, or perhaps you are considering a non-profit organization? Read on to
partnership, as a corporation, or perhaps you are considering a non-profit organization? Read on to understand the differences between each type of business and for more information on registering your
understand the differences between each type of business and for more information on registering your
understand the differences between each type of business and for more information on registering your small business in Canada.
small business in Canada.
small business in Canada.
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6. TYPE OF BUSINESS
6. TYPE OF BUSINESS
6. TYPE OF BUSINESS
As a startup business owner you understand the importance of planning your business correctly from As a startup business owner you understand the importance of planning your business correctly from
As a startup business owner you understand the importance of planning your business correctly from the get-go. It is also very important that you let the government know your plans, especially when
the get-go. It is also very important that you let the government know your plans, especially when
the get-go. It is also very important that you let the government know your plans, especially when choosing the type of business you are developing.
choosing the type of business you are developing.
choosing the type of business you are developing.
You may have had to register your business with several different levels of government for various You may have had to register your business with several different levels of government for various
You may have had to register your business with several different levels of government for various reasons. It is very important to know which form of business you are registering. Let’s take some time
reasons. It is very important to know which form of business you are registering. Let’s take some time
reasons. It is very important to know which form of business you are registering. Let’s take some time right now to look at the 3 main categories of business in Canada to help you determine how you should
right now to look at the 3 main categories of business in Canada to help you determine how you should
right now to look at the 3 main categories of business in Canada to help you determine how you should register your new venture.
register your new venture.
register your new venture.
The structure you wish to form for your small business will depend on whether you are planning on The structure you wish to form for your small business will depend on whether you are planning on
The structure you wish to form for your small business will depend on whether you are planning on running it by yourself, with a partner, or with associates. They include:
running it by yourself, with a partner, or with associates. They include:
running it by yourself, with a partner, or with associates. They include:
∙ Sole Proprietorships
∙ Sole Proprietorships
∙ Sole Proprietorships
∙ Partnerships
∙ Partnerships
∙ Partnerships
∙ Corporations
∙ Corporations
∙ Corporations
So what is each type of business exactly? What are their advantages and disadvantages? Read on to So what is each type of business exactly? What are their advantages and disadvantages? Read on to
So what is each type of business exactly? What are their advantages and disadvantages? Read on to better understand which form of business registration is right for your small business.
better understand which form of business registration is right for your small business. better understand which form of business registration is right for your small business.
Sole proprietorship
Sole proprietorship
Sole proprietorship
When registering your small business as a sole proprietorship, you are basically saying that you are and When registering your small business as a sole proprietorship, you are basically saying that you are and
When registering your small business as a sole proprietorship, you are basically saying that you are and will be the owner of this business. With sole proprietorship, you are fully responsible for all obligations
will be the owner of this business. With sole proprietorship, you are fully responsible for all obligations
will be the owner of this business. With sole proprietorship, you are fully responsible for all obligations of your business – all the profits are yours to keep, but you are also responsible for any debt you incur.
of your business – all the profits are yours to keep, but you are also responsible for any debt you incur.
of your business – all the profits are yours to keep, but you are also responsible for any debt you incur. Keep in mind that a creditor can make a claim against your personal or business assets to pay off any
Keep in mind that a creditor can make a claim against your personal or business assets to pay off any
Keep in mind that a creditor can make a claim against your personal or business assets to pay off any debt.
debt.
debt.
Some advantages/ disadvantages of registering your small business as a sole proprietorship are: Some advantages/ disadvantages of registering your small business as a sole proprietorship are: Some advantages/ disadvantages of registering your small business as a sole proprietorship are:
ADVANTAGES DISADVANTAGES
ADVANTAGES DISADVANTAGES
ADVANTAGES DISADVANTAGES
∙ Creation of a sole proprietorship is easy
∙ Creation of a sole proprietorship is easy
∙ Creation of a sole proprietorship is easy and inexpensive
and inexpensive
and inexpensive
∙ Low start-up costs. Minimal funding is ∙ Low start-up costs. Minimal funding is
∙ Low start-up costs. Minimal funding is required to get the ball rolling
required to get the ball rolling
required to get the ball rolling ∙ Full control of decision making
∙ Full control of decision making
∙ Full control of decision making ∙ Fewer regulations
∙ Fewer regulations
∙ Fewer regulations
∙ Certain tax advantages
∙ Certain tax advantages
∙ Certain tax advantages
∙ All profits go directly to you ∙ All profits go directly to you ∙ All profits go directly to you
∙ Unlimited liability – your personal assets could ∙ Unlimited liability – your personal assets could
∙ Unlimited liability – your personal assets could be used to pay off debts
be used to pay off debts
be used to pay off debts
∙ Business income is taxable at your personal ∙ Business income is taxable at your personal
∙ Business income is taxable at your personal rate
rate
rate
∙ Lack of continuity for your business in your ∙ Lack of continuity for your business in your
∙ Lack of continuity for your business in your absence
absence
absence
∙ Difficulty obtaining funding
∙ Difficulty obtaining funding
∙ Difficulty obtaining funding
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If you’re not confident you can do it on your own, consider registering your business as a partnership. If you’re not confident you can do it on your own, consider registering your business as a partnership. If you’re not confident you can do it on your own, consider registering your business as a partnership.
Partnerships
Partnerships
Partnerships
A partnership is the ideal way to register your small business if you are not the only owner. You have A partnership is the ideal way to register your small business if you are not the only owner. You have
A partnership is the ideal way to register your small business if you are not the only owner. You have business partners but don’t want to incorporate. With a partnership, your financial resources are
business partners but don’t want to incorporate. With a partnership, your financial resources are
business partners but don’t want to incorporate. With a partnership, your financial resources are combined and put towards the business. Terms can be established to protect you and your business.
combined and put towards the business. Terms can be established to protect you and your business.
combined and put towards the business. Terms can be established to protect you and your business. Important details like the share of profits would be negotiated during the registration stages.
Important details like the share of profits would be negotiated during the registration stages. Important details like the share of profits would be negotiated during the registration stages. There is one type of business partnership registration, but with a business lawyer you can change the There is one type of business partnership registration, but with a business lawyer you can change the
There is one type of business partnership registration, but with a business lawyer you can change the specific details of the registration easily. For example, if you want to participate in the funding portion
specific details of the registration easily. For example, if you want to participate in the funding portion
specific details of the registration easily. For example, if you want to participate in the funding portion of the business but want to decline control or any legal liabilities, you can work that into an agreement
of the business but want to decline control or any legal liabilities, you can work that into an agreement
of the business but want to decline control or any legal liabilities, you can work that into an agreement with your partners and business lawyers.
with your partners and business lawyers.
with your partners and business lawyers.
When establishing a partnership, a partnership agreement is crucial– and should outline how you are When establishing a partnership, a partnership agreement is crucial– and should outline how you are
When establishing a partnership, a partnership agreement is crucial– and should outline how you are protecting your interests, provide a clear breakdown of profit sharing, and under what circumstances
protecting your interests, provide a clear breakdown of profit sharing, and under what circumstances
protecting your interests, provide a clear breakdown of profit sharing, and under what circumstances would the partnership be dissolved.
would the partnership be dissolved.
would the partnership be dissolved.
Some advantages/ disadvantages of a partnership business structure may include: Some advantages/ disadvantages of a partnership business structure may include: Some advantages/ disadvantages of a partnership business structure may include:
ADVANTAGES DISADVANTAGES
ADVANTAGES DISADVANTAGES
ADVANTAGES DISADVANTAGES
∙ There is no difference between you and your
∙ There is no difference between you and your
∙ There is no difference between you and your
∙ Two heads are better than one. It ‘s easy
∙ Two heads are better than one. It ‘s easy
∙ Two heads are better than one. It ‘s easy to begin, especially if you already have a
to begin, especially if you already have a
to begin, especially if you already have a partner in mind
partner in mind
business. You and your partners are personally business. You and your partners are personally
business. You and your partners are personally responsible for everything
responsible for everything
responsible for everything
partner in mind
∙ Startup costs are shared equally ∙ Startup costs are shared equally
∙ Startup costs are shared equally amongst all partners
amongst all partners
amongst all partners
∙ Unlimited liability – your personal assets could ∙ Unlimited liability – your personal assets could
∙ Unlimited liability – your personal assets could be used to pay off debts
be used to pay off debts
be used to pay off debts
∙ Difficulty in finding suitable partners ∙ Difficulty in finding suitable partners ∙ Difficulty in finding suitable partners
∙ Equal share in the management, profits
∙ Equal share in the management, profits
∙ Equal share in the management, profits
∙ Possibility of conflict in decision-making
∙ Possibility of conflict in decision-making
and assets
and assets
and assets
∙ Certain tax advantages ∙ Certain tax advantages ∙ Certain tax advantages
∙ Possibility of conflict in decision-making between partners
between partners
between partners
∙ You are personally and financially responsible ∙ You are personally and financially responsible
∙ You are personally and financially responsible for all decisions, including those of your partners
for all decisions, including those of your partners for all decisions, including those of your partners
If the degree of liability discourages you when deciding on the type of business to register, consider If the degree of liability discourages you when deciding on the type of business to register, consider
If the degree of liability discourages you when deciding on the type of business to register, consider registering your small business as a corporation.
registering your small business as a corporation.
registering your small business as a corporation.
Corporations
Corporations
Corporations
Registering a corporation can be done on either a federal or provincial/territorial level. When you decide Registering a corporation can be done on either a federal or provincial/territorial level. When you decide
Registering a corporation can be done on either a federal or provincial/territorial level. When you decide to incorporate your small business, you are legally separating yourself from the business. The business
to incorporate your small business, you are legally separating yourself from the business. The business
to incorporate your small business, you are legally separating yourself from the business. The business itself becomes a legal entity. You become a shareholder and shareholders are not personally liable for
itself becomes a legal entity. You become a shareholder and shareholders are not personally liable for
itself becomes a legal entity. You become a shareholder and shareholders are not personally liable for any debts or obligations.
any debts or obligations.
any debts or obligations.
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When deciding to incorporate your business, it is highly recommended to obtain legal advice. When deciding to incorporate your business, it is highly recommended to obtain legal advice. When deciding to incorporate your business, it is highly recommended to obtain legal advice. Some advantages/ disadvantages of registering your small business as a corporation include:
Some advantages/ disadvantages of registering your small business as a corporation include: Some advantages/ disadvantages of registering your small business as a corporation include:
ADVANTAGES DISADVANTAGES ADVANTAGES DISADVANTAGES ADVANTAGES DISADVANTAGES
∙ Corporations are strictly regulated by the
∙ Corporations are strictly regulated by the
∙ Limited liability
∙ Limited liability
∙ Limited liability
∙ Ownership is transferable through ∙ Ownership is transferable through
∙ Ownership is transferable through company shares
company shares
company shares
∙ Contentious existence
∙ Contentious existence
∙ Contentious existence
∙ Separate legal entity
∙ Separate legal entity
∙ Separate legal entity
∙ Easier to obtain funding ∙ Easier to obtain funding
∙ Easier to obtain funding ∙ Possible tax advantages
∙ Possible tax advantages
∙ Possible tax advantages
∙ Corporations are strictly regulated by the government
government
government
∙ More expensive to incorporate versus ∙ More expensive to incorporate versus
∙ More expensive to incorporate versus partnership or sole proprietorship
partnership or sole proprietorship
partnership or sole proprietorship ∙ Extensive corporate records are required
∙ Extensive corporate records are required
∙ Extensive corporate records are required ∙ Possible conflicts between shareholders
∙ Possible conflicts between shareholders
∙ Possible conflicts between shareholders and directors
and directors
and directors
Whichever business registration type appeals the most to you and your situation, we always Whichever business registration type appeals the most to you and your situation, we always
Whichever business registration type appeals the most to you and your situation, we always recommend conducting additional research. If you are sure that you have what you need – go ahead
recommend conducting additional research. If you are sure that you have what you need – go ahead
recommend conducting additional research. If you are sure that you have what you need – go ahead and register your business. Be sure to refer to the Business Registration Links section of our guide to
and register your business. Be sure to refer to the Business Registration Links section of our guide to
and register your business. Be sure to refer to the Business Registration Links section of our guide to find appropriate places to register your business for your province or territory.
find appropriate places to register your business for your province or territory.
find appropriate places to register your business for your province or territory.
Naming your small business
Naming your small business
Naming your small business
Once you’ve figured out how to register your business, you get to be creative and come up with a name Once you’ve figured out how to register your business, you get to be creative and come up with a name
Once you’ve figured out how to register your business, you get to be creative and come up with a name for your company. Choose your business’ name carefully. It may seem like a small detail but this step
for your company. Choose your business’ name carefully. It may seem like a small detail but this step
for your company. Choose your business’ name carefully. It may seem like a small detail but this step can make or break a business.
can make or break a business.
can make or break a business.
What’s in a name? Quite a bit actually! The right name for your small business can be a great marketing What’s in a name? Quite a bit actually! The right name for your small business can be a great marketing
What’s in a name? Quite a bit actually! The right name for your small business can be a great marketing tool. Your name can help your customers understand what your business offers and which market you
tool. Your name can help your customers understand what your business offers and which market you
tool. Your name can help your customers understand what your business offers and which market you are targeting. Having the wrong name can confuse and divert potential customers.
are targeting. Having the wrong name can confuse and divert potential customers. are targeting. Having the wrong name can confuse and divert potential customers. A few things to consider when naming your business:
A few things to consider when naming your business:
A few things to consider when naming your business:
∙ Does your business name describe the product or service you are offering? ∙ Does your business name describe the product or service you are offering?
∙ Does your business name describe the product or service you are offering? ∙ Does your name reflect the values of your business?
∙ Does your name reflect the values of your business?
∙ Does your name reflect the values of your business?
∙ Is the name you are opting for a distinctive one?
∙ Is the name you are opting for a distinctive one?
∙ Is the name you are opting for a distinctive one?
∙ Will your customers be able to identify and remember your name?
∙ Will your customers be able to identify and remember your name?
∙ Will your customers be able to identify and remember your name?
∙ Are you legally permitted to use the selected name?
∙ Are you legally permitted to use the selected name?
∙ Are you legally permitted to use the selected name?
These are just a few questions to ask yourself before making that final choice. Be sure not to take the These are just a few questions to ask yourself before making that final choice. Be sure not to take the
These are just a few questions to ask yourself before making that final choice. Be sure not to take the naming of your business too lightly. It can literally make or break your business. Put some time into
naming of your business too lightly. It can literally make or break your business. Put some time into
naming of your business too lightly. It can literally make or break your business. Put some time into naming your business and conduct some research before you do.
naming your business and conduct some research before you do.
naming your business and conduct some research before you do.
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Permits, licenses and regulations
Permits, licenses and regulations
Permits, licenses and regulations
One of the worst things that can happen to a small business in the start-up stage is running into One of the worst things that can happen to a small business in the start-up stage is running into
One of the worst things that can happen to a small business in the start-up stage is running into obstacles with local and federal governments. Sometimes it can be simple details you’ve missed in the
obstacles with local and federal governments. Sometimes it can be simple details you’ve missed in the
obstacles with local and federal governments. Sometimes it can be simple details you’ve missed in the initial stages. Other times it can be licenses you legally need in order to operate.
initial stages. Other times it can be licenses you legally need in order to operate.
initial stages. Other times it can be licenses you legally need in order to operate.
Be sure to check and see which permits and licenses you may need, and if there any regulations you Be sure to check and see which permits and licenses you may need, and if there any regulations you
Be sure to check and see which permits and licenses you may need, and if there any regulations you must adhere to before starting your business.
must adhere to before starting your business.
must adhere to before starting your business.
In order to do business in Canada, and to comply with any government regulations, you may need a In order to do business in Canada, and to comply with any government regulations, you may need a
In order to do business in Canada, and to comply with any government regulations, you may need a number of different licenses and permits from various levels of government. Not all businesses require
number of different licenses and permits from various levels of government. Not all businesses require
number of different licenses and permits from various levels of government. Not all businesses require licenses and permits but it is paramount to the success of your business that you double-check.
licenses and permits but it is paramount to the success of your business that you double-check. licenses and permits but it is paramount to the success of your business that you double-check. Refer to the Business Registration Links Page in this guide to determine if you fall into this category. Refer to the Business Registration Links Page in this guide to determine if you fall into this category. Refer to the Business Registration Links Page in this guide to determine if you fall into this category.
Employees, payroll and taxes
Employees, payroll and taxes
Employees, payroll and taxes
A big component of building up a successful business is hiring employees, paying them and paying A big component of building up a successful business is hiring employees, paying them and paying
A big component of building up a successful business is hiring employees, paying them and paying taxes.
taxes.
taxes.
Knowing your obligations and opportunities when it comes to hiring personnel is a must. From Knowing your obligations and opportunities when it comes to hiring personnel is a must. From
Knowing your obligations and opportunities when it comes to hiring personnel is a must. From recruitment to payroll to tax returns, it is necessary to familiarize yourself with current labour laws and
recruitment to payroll to tax returns, it is necessary to familiarize yourself with current labour laws and
recruitment to payroll to tax returns, it is necessary to familiarize yourself with current labour laws and labour market conditions.
labour market conditions.
labour market conditions.
When you decide to hire an employee to work for your small business, there are certain government When you decide to hire an employee to work for your small business, there are certain government
When you decide to hire an employee to work for your small business, there are certain government regulations which must be followed throughout the hiring and employment stages.
regulations which must be followed throughout the hiring and employment stages.
regulations which must be followed throughout the hiring and employment stages.
It’s important to identify the requirements of the positions you want to fill. You need to implement It’s important to identify the requirements of the positions you want to fill. You need to implement
It’s important to identify the requirements of the positions you want to fill. You need to implement recruitment and selection policies that are fair and inclusive. Your goal is to hire the most qualified
recruitment and selection policies that are fair and inclusive. Your goal is to hire the most qualified
recruitment and selection policies that are fair and inclusive. Your goal is to hire the most qualified people while achieving equality in the workplace.
people while achieving equality in the workplace.
people while achieving equality in the workplace.
Here are a few pointers that will assist in your search for great employees:
Here are a few pointers that will assist in your search for great employees:
Here are a few pointers that will assist in your search for great employees:
✔ Define the job requirements for the position
✔ Define the job requirements for the position
✔ Define the job requirements for the position
✔ Advertise the job
✔ Advertise the job
✔ Advertise the job
✔ Interview qualified candidates
✔ Interview qualified candidates
✔ Interview qualified candidates
✔ Perform background checks and call employment references
✔ Perform background checks and call employment references
✔ Perform background checks and call employment references
✔ Select the most suitable candidate
✔ Select the most suitable candidate
✔ Select the most suitable candidate
✔ Provide training and orientation for each new employee
✔ Provide training and orientation for each new employee
✔ Provide training and orientation for each new employee
✔ Start a file for each employee
✔ Start a file for each employee
✔ Start a file for each employee
The information you keep on your employees should include; personal and contact information, The information you keep on your employees should include; personal and contact information,
The information you keep on your employees should include; personal and contact information, education, work history, salary, benefits, skills and job classifications.
education, work history, salary, benefits, skills and job classifications.
education, work history, salary, benefits, skills and job classifications.
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As an employer, you are also responsible for deducting Canada Pension Plan (CPP) contributions from As an employer, you are also responsible for deducting Canada Pension Plan (CPP) contributions from
As an employer, you are also responsible for deducting Canada Pension Plan (CPP) contributions from your employees. In addition to CPP, you are required to deduct Employment Insurance (EI) premiums
your employees. In addition to CPP, you are required to deduct Employment Insurance (EI) premiums
your employees. In addition to CPP, you are required to deduct Employment Insurance (EI) premiums and income tax reporting this data to the Canada Revenue Agency.
and income tax reporting this data to the Canada Revenue Agency.
and income tax reporting this data to the Canada Revenue Agency.
While processing payroll you will also need to manage your business’ taxes. Whether you have an While processing payroll you will also need to manage your business’ taxes. Whether you have an
While processing payroll you will also need to manage your business’ taxes. Whether you have an accountant that handles this or you do them yourself, it’s important to understand the best practices
accountant that handles this or you do them yourself, it’s important to understand the best practices
accountant that handles this or you do them yourself, it’s important to understand the best practices and know what taxation applies to your type of business.
and know what taxation applies to your type of business.
and know what taxation applies to your type of business.
You should be able at any time to answer the following questions; What do you owe and when? How do You should be able at any time to answer the following questions; What do you owe and when? How do
You should be able at any time to answer the following questions; What do you owe and when? How do you keep accurate records of your business finances? How do you make and report payments? Do you
you keep accurate records of your business finances? How do you make and report payments? Do you
you keep accurate records of your business finances? How do you make and report payments? Do you qualify for tax credits or any money back from the government?
qualify for tax credits or any money back from the government?
qualify for tax credits or any money back from the government?
To get a better idea of taxes and important information please refer to the Federal Tax Information To get a better idea of taxes and important information please refer to the Federal Tax Information
To get a better idea of taxes and important information please refer to the Federal Tax Information page as well as the Provincial and Territorial Tax Information page by the government of Canada.
page as well as the Provincial and Territorial Tax Information page by the government of Canada. page as well as the Provincial and Territorial Tax Information page by the government of Canada.
Business registration links
Business registration links
Business registration links
When registering your business, be sure to obtain a Business Number (BN) or an NEQ for those located When registering your business, be sure to obtain a Business Number (BN) or an NEQ for those located
When registering your business, be sure to obtain a Business Number (BN) or an NEQ for those located in Quebec.
in Quebec.
in Quebec.
Here are two links to help you obtain your business number:
Here are two links to help you obtain your business number:
Here are two links to help you obtain your business number:
∙ Business Number (BN)
∙ Business Number (BN)
∙ Business Number (BN)
Your Business Number is your single account number for dealing with the government Your Business Number is your single account number for dealing with the government
Your Business Number is your single account number for dealing with the government regarding GST/HST, payroll, import/export, and other activities.
regarding GST/HST, payroll, import/export, and other activities.
regarding GST/HST, payroll, import/export, and other activities.
∙ NEQ — Quebec Enterprise Number (Applies only to Québec)
∙ NEQ — Quebec Enterprise Number (Applies only to Québec)
∙ NEQ — Quebec Enterprise Number (Applies only to Québec)
Simplify and fast-track your dealings with the various Quebec government departments by Simplify and fast-track your dealings with the various Quebec government departments by
Simplify and fast-track your dealings with the various Quebec government departments by registering with the Registraire des entreprises [Quebec enterprise registrar].
registering with the Registraire des entreprises [Quebec enterprise registrar].
registering with the Registraire des entreprises [Quebec enterprise registrar].
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Small Business Startup Guide
Small Business Startup Guide
Provincial and territorial business registration
Provincial and territorial business registration
Provincial and territorial business registration
Most provincial and territorial governments require that you register your small business with them. Most provincial and territorial governments require that you register your small business with them. Most provincial and territorial governments require that you register your small business with them.
Here are links for you to utilize when registering your business on the provincial level. Here are links for you to utilize when registering your business on the provincial level. Here are links for you to utilize when registering your business on the provincial level.
Alberta
Alberta
Alberta
∙ Corporate Registry
∙ Corporate Registry
∙ Corporate Registry
To conduct business in Alberta, register your cooperative, corporation, extra-provincial To conduct business in Alberta, register your cooperative, corporation, extra-provincial
To conduct business in Alberta, register your cooperative, corporation, extra-provincial company, non-profit organization, society, trade name and/or partnership.
company, non-profit organization, society, trade name and/or partnership.
company, non-profit organization, society, trade name and/or partnership.
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can save you time as it allows for a seamless business registration between provinces.
save you time as it allows for a seamless business registration between provinces. save you time as it allows for a seamless business registration between provinces.
British Columbia
British Columbia
British Columbia
∙ BC Business Registry
∙ BC Business Registry
∙ BC Business Registry
This website will guide you through the steps of registering your sole proprietorship or general This website will guide you through the steps of registering your sole proprietorship or general
This website will guide you through the steps of registering your sole proprietorship or general partnership business in BC.
partnership business in BC.
partnership business in BC.
∙ Corporate Online
∙ Corporate Online
∙ Corporate Online
Learn how to register your provincial or extra-provincial company in BC.
Learn how to register your provincial or extra-provincial company in BC.
Learn how to register your provincial or extra-provincial company in BC.
∙ Community Contribution Company
∙ Community Contribution Company
∙ Community Contribution Company
Find out how this business structure allows you to pursue social goals while making a profit and Find out how this business structure allows you to pursue social goals while making a profit and
Find out how this business structure allows you to pursue social goals while making a profit and providing opportunities to like-minded investors.
providing opportunities to like-minded investors.
providing opportunities to like-minded investors.
∙ Name Requests Online
∙ Name Requests Online
∙ Name Requests Online
Submit a business or corporate name for approval by B.C. Registry Services.
Submit a business or corporate name for approval by B.C. Registry Services.
Submit a business or corporate name for approval by B.C. Registry Services.
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can save you time as it allows for a seamless business registration between provinces.
save you time as it allows for a seamless business registration between provinces. save you time as it allows for a seamless business registration between provinces.
Manitoba
Manitoba
Manitoba
∙ Companies Office – Business name registration and provincial incorporation (Manitoba) ∙ Companies Office – Business name registration and provincial incorporation (Manitoba)
∙ Companies Office – Business name registration and provincial incorporation (Manitoba) Find out how to register your business and what you need to know about provincial
Find out how to register your business and what you need to know about provincial
Find out how to register your business and what you need to know about provincial incorporation.
incorporation.
incorporation.
New Brunswick
New Brunswick
New Brunswick
∙ Registration / Declaration of a limited partnership (New Brunswick)
∙ Registration / Declaration of a limited partnership (New Brunswick)
∙ Registration / Declaration of a limited partnership (New Brunswick)
Find out about the rules, procedures and fees to form a limited partnership or register your Find out about the rules, procedures and fees to form a limited partnership or register your
Find out about the rules, procedures and fees to form a limited partnership or register your extra-provincial limited partnership in NB.
extra-provincial limited partnership in NB.
extra-provincial limited partnership in NB.
∙ Registration of an extra-provincial corporation (New Brunswick)
∙ Registration of an extra-provincial corporation (New Brunswick)
∙ Registration of an extra-provincial corporation (New Brunswick)
Find out about the rules, procedures and fees for registering an extra-provincial corporation in Find out about the rules, procedures and fees for registering an extra-provincial corporation in
Find out about the rules, procedures and fees for registering an extra-provincial corporation in New Brunswick.
New Brunswick.
New Brunswick.
∙ Incorporation / registration of a business
∙ Incorporation / registration of a business
∙ Incorporation / registration of a business
Find out about the rules, procedures and fees for registering a provincial corporation in New Find out about the rules, procedures and fees for registering a provincial corporation in New
Find out about the rules, procedures and fees for registering a provincial corporation in New Brunswick.
Brunswick.
Brunswick.
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
∙ Co-operative (Co-ops) Incorporation
∙ Co-operative (Co-ops) Incorporation
∙ Co-operative (Co-ops) Incorporation
Learn how to start and operate a co-operative in New Brunswick.
Learn how to start and operate a co-operative in New Brunswick.
Learn how to start and operate a co-operative in New Brunswick.
Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador
∙ Registry of Companies (Newfoundland and Labrador)
∙ Registry of Companies (Newfoundland and Labrador)
∙ Registry of Companies (Newfoundland and Labrador)
In Newfoundland and Labrador, you must register with the Registry of Companies if you decide In Newfoundland and Labrador, you must register with the Registry of Companies if you decide
In Newfoundland and Labrador, you must register with the Registry of Companies if you decide to incorporate provincially.
to incorporate provincially.
to incorporate provincially.
Northwest Territories
Northwest Territories
Northwest Territories
∙ Corporate Registries — Business Corporations — Extra-Territorial Registration (Northwest ∙ Corporate Registries — Business Corporations — Extra-Territorial Registration (Northwest
∙ Corporate Registries — Business Corporations — Extra-Territorial Registration (Northwest Territories)
Territories)
Territories)
Are you currently operating a corporation outside the Northwest Territories and interested in Are you currently operating a corporation outside the Northwest Territories and interested in
Are you currently operating a corporation outside the Northwest Territories and interested in expanding your company into the Northwest Territories? Find out the requirements to register
expanding your company into the Northwest Territories? Find out the requirements to register
expanding your company into the Northwest Territories? Find out the requirements to register your business in the Territory.
your business in the Territory.
your business in the Territory.
Nova Scotia
Nova Scotia
Nova Scotia
∙ Access Nova Scotia
∙ Access Nova Scotia
∙ Access Nova Scotia
Find out how to register your business, obtain required permits and licenses, and get Find out how to register your business, obtain required permits and licenses, and get
Find out how to register your business, obtain required permits and licenses, and get information on provincial government programs and services.
information on provincial government programs and services.
information on provincial government programs and services.
∙ Registry of Joint Stock Companies
∙ Registry of Joint Stock Companies
∙ Registry of Joint Stock Companies
Register your business or research existing corporations and partnerships.
Register your business or research existing corporations and partnerships.
Register your business or research existing corporations and partnerships.
Nunavut
Nunavut
Nunavut
∙ Legal registries (Nunavut)
∙ Legal registries (Nunavut)
∙ Legal registries (Nunavut)
In order to do business in Nunavut, you must register with the territory, even if you live in or In order to do business in Nunavut, you must register with the territory, even if you live in or
In order to do business in Nunavut, you must register with the territory, even if you live in or have a business established in another part of Canada.
have a business established in another part of Canada.
have a business established in another part of Canada.
Ontario
Ontario
Ontario
∙ Business name registration information (Ontario)
∙ Business name registration information (Ontario)
∙ Business name registration information (Ontario)
Register your business name online, in person or by mail.
Register your business name online, in person or by mail.
Register your business name online, in person or by mail.
∙ Extra-provincial domestic corporations operating in Ontario
∙ Extra-provincial domestic corporations operating in Ontario
∙ Extra-provincial domestic corporations operating in Ontario
If your business was incorporated federally or in another province/territory, you must inform If your business was incorporated federally or in another province/territory, you must inform
If your business was incorporated federally or in another province/territory, you must inform the Ontario government you are doing business in Ontario.
the Ontario government you are doing business in Ontario.
the Ontario government you are doing business in Ontario.
∙ Limited partnerships (Ontario)
∙ Limited partnerships (Ontario)
∙ Limited partnerships (Ontario)
Find out if a limited partnership is right for your business.
Find out if a limited partnership is right for your business.
Find out if a limited partnership is right for your business.
∙ Collection agency licensing
∙ Collection agency licensing
∙ Collection agency licensing
Find out how to register and license your collection agency in Ontario.
Find out how to register and license your collection agency in Ontario.
Find out how to register and license your collection agency in Ontario.
Prince Edward Island
Prince Edward Island
Prince Edward Island
∙ Corporate services — Business name registration
∙ Corporate services — Business name registration
∙ Corporate services — Business name registration
Register your business name in Prince Edward Island to prevent other organizations from using Register your business name in Prince Edward Island to prevent other organizations from using
Register your business name in Prince Edward Island to prevent other organizations from using the same business name.
the same business name.
the same business name.
∙ Register my company to do business in P.E.I.
∙ Register my company to do business in P.E.I.
∙ Register my company to do business in P.E.I.
Are you looking to do business in P.E.I. but are incorporated elsewhere? If so, you must register Are you looking to do business in P.E.I. but are incorporated elsewhere? If so, you must register
Are you looking to do business in P.E.I. but are incorporated elsewhere? If so, you must register as an extra-provincial corporation.
as an extra-provincial corporation.
as an extra-provincial corporation.
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
Québec
Québec
Québec
∙ Creating a non-profit corporation or organization
∙ Creating a non-profit corporation or organization
∙ Creating a non-profit corporation or organization
Learn the major steps for establishing a non-profit corporation or organization in Quebec. Learn the major steps for establishing a non-profit corporation or organization in Quebec.
Learn the major steps for establishing a non-profit corporation or organization in Quebec. ∙ Enterprise register (Quebec)
∙ Enterprise register (Quebec)
∙ Enterprise register (Quebec)
If you operate a business in Quebec, you must register with the enterprise register and declare If you operate a business in Quebec, you must register with the enterprise register and declare
If you operate a business in Quebec, you must register with the enterprise register and declare your organization’s legal form.
your organization’s legal form.
your organization’s legal form.
∙ NEQ — Quebec Enterprise Number
∙ NEQ — Quebec Enterprise Number
∙ NEQ — Quebec Enterprise Number
Simplify and fast-track your dealings with the various Quebec government departments by Simplify and fast-track your dealings with the various Quebec government departments by
Simplify and fast-track your dealings with the various Quebec government departments by registering with the Registraire des entreprises [Quebec enterprise registrar].
registering with the Registraire des entreprises [Quebec enterprise registrar].
registering with the Registraire des entreprises [Quebec enterprise registrar].
∙ Registration of a charitable organization
∙ Registration of a charitable organization
∙ Registration of a charitable organization
Find all the information you need to register a charity in Quebec.
Find all the information you need to register a charity in Quebec.
Find all the information you need to register a charity in Quebec.
∙ Revenu Québec — Business Portal
∙ Revenu Québec — Business Portal
∙ Revenu Québec — Business Portal
Is your company based in Quebec? If so, learn about your fiscal obligations including taxes and Is your company based in Quebec? If so, learn about your fiscal obligations including taxes and
Is your company based in Quebec? If so, learn about your fiscal obligations including taxes and deductions.
deductions.
deductions.
∙ Setting up a cooperative (in French only)
∙ Setting up a cooperative (in French only)
∙ Setting up a cooperative (in French only)
Do you want to create or start a cooperative? If so, learn more about the laws, programs, Do you want to create or start a cooperative? If so, learn more about the laws, programs,
Do you want to create or start a cooperative? If so, learn more about the laws, programs, policies, and tools related to starting a cooperative.
policies, and tools related to starting a cooperative.
policies, and tools related to starting a cooperative.
Saskatchewan
Saskatchewan
Saskatchewan
∙ Forming a co-operative in Saskatchewan
∙ Forming a co-operative in Saskatchewan
∙ Forming a co-operative in Saskatchewan
Find out how to register a co-operative in Saskatchewan- includes information on fees and Find out how to register a co-operative in Saskatchewan- includes information on fees and
Find out how to register a co-operative in Saskatchewan- includes information on fees and required forms.
required forms.
required forms.
∙ Registering a sole proprietorship or partnership in Saskatchewan
∙ Registering a sole proprietorship or partnership in Saskatchewan
∙ Registering a sole proprietorship or partnership in Saskatchewan
Find out how to register your business name as a sole proprietorship or partnership in Find out how to register your business name as a sole proprietorship or partnership in
Find out how to register your business name as a sole proprietorship or partnership in Saskatchewan, including fees, forms required, and turn-around time
Saskatchewan, including fees, forms required, and turn-around time
Saskatchewan, including fees, forms required, and turn-around time
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
∙ New West Partnership Trade Agreement
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can
If your business is located in British Columbia, Alberta, or Saskatchewan, this agreement can save you time as it allows for a seamless business registration between provinces.
save you time as it allows for a seamless business registration between provinces. save you time as it allows for a seamless business registration between provinces.
Yukon
Yukon
Yukon
∙ Business registration in the Yukon
∙ Business registration in the Yukon
∙ Business registration in the Yukon
In order to register your business in the Yukon, you will need to contact Corporate Affairs In order to register your business in the Yukon, you will need to contact Corporate Affairs In order to register your business in the Yukon, you will need to contact Corporate Affairs
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
Incorporating your small business
Incorporating your small business
Incorporating your small business
If you decide to incorporate your small business, you can incorporate federally or provincially. Federal If you decide to incorporate your small business, you can incorporate federally or provincially. Federal
If you decide to incorporate your small business, you can incorporate federally or provincially. Federal incorporations allow you to do business under the same name in all of the provinces and territories but
incorporations allow you to do business under the same name in all of the provinces and territories but
incorporations allow you to do business under the same name in all of the provinces and territories but you may be required to register your business within the individual provinces/territories. Before
you may be required to register your business within the individual provinces/territories. Before
you may be required to register your business within the individual provinces/territories. Before incorporating federally you should do a NUANS Corporate name search.
incorporating federally you should do a NUANS Corporate name search.
incorporating federally you should do a NUANS Corporate name search.
FEDERAL BUSINESS INCORPORATION
FEDERAL BUSINESS INCORPORATION
FEDERAL BUSINESS INCORPORATION
∙ Federal business incorporation
∙ Federal business incorporation
∙ Federal business incorporation
Access convenient online or paper methods of incorporating your business federally. Access convenient online or paper methods of incorporating your business federally.
Access convenient online or paper methods of incorporating your business federally. ∙ Guide to Federal Incorporation
∙ Guide to Federal Incorporation
∙ Guide to Federal Incorporation
Follow these step-by-step guidelines to help you incorporate your business and set up an Follow these step-by-step guidelines to help you incorporate your business and set up an
Follow these step-by-step guidelines to help you incorporate your business and set up an appropriate structure.
appropriate structure.
appropriate structure.
∙ Federal cooperatives
∙ Federal cooperatives
∙ Federal cooperatives
Find out how to incorporate and maintain a federal cooperative in Canada.
Find out how to incorporate and maintain a federal cooperative in Canada.
Find out how to incorporate and maintain a federal cooperative in Canada.
∙ Keeping your corporation in good standing: Reporting obligations
∙ Keeping your corporation in good standing: Reporting obligations
∙ Keeping your corporation in good standing: Reporting obligations
Find out how to keep your federally incorporated company in good standing.
Find out how to keep your federally incorporated company in good standing.
Find out how to keep your federally incorporated company in good standing.
∙ Reviving a Business Corporation
∙ Reviving a Business Corporation
∙ Reviving a Business Corporation
Find out how you can revive a dissolved federal corporation and restore it to its previous legal Find out how you can revive a dissolved federal corporation and restore it to its previous legal
Find out how you can revive a dissolved federal corporation and restore it to its previous legal status
status
status
PROVINCIAL AND TERRITORIAL BUSINESS INCORPORATION
PROVINCIAL AND TERRITORIAL BUSINESS INCORPORATION
PROVINCIAL AND TERRITORIAL BUSINESS INCORPORATION
Alberta
Alberta
Alberta
∙ Corporate Registry
∙ Corporate Registry
∙ Corporate Registry
To conduct business in Alberta, register your cooperative, corporation, extra-provincial To conduct business in Alberta, register your cooperative, corporation, extra-provincial
To conduct business in Alberta, register your cooperative, corporation, extra-provincial company, non-profit organization, society, trade name and/or partnership.
company, non-profit organization, society, trade name and/or partnership.
company, non-profit organization, society, trade name and/or partnership.
British Columbia
British Columbia
British Columbia
∙ BC Business Registry
∙ BC Business Registry
∙ BC Business Registry
This website will guide you through the steps of registering your sole proprietorship or This website will guide you through the steps of registering your sole proprietorship or
This website will guide you through the steps of registering your sole proprietorship or general partnership business in BC.
general partnership business in BC.
general partnership business in BC.
Manitoba
Manitoba
Manitoba
∙ Companies Office – Business name registration and provincial incorporation (Manitoba) ∙ Companies Office – Business name registration and provincial incorporation (Manitoba)
∙ Companies Office – Business name registration and provincial incorporation (Manitoba) Find out how to register your business and what you need to know about provincial
Find out how to register your business and what you need to know about provincial
Find out how to register your business and what you need to know about provincial incorporation.
incorporation.
incorporation.
New Brunswick
New Brunswick
New Brunswick
∙ Incorporation / registration of a business
∙ Incorporation / registration of a business
∙ Incorporation / registration of a business
Find out about the rules, procedures and fees for registering a provincial corporation in New Find out about the rules, procedures and fees for registering a provincial corporation in New
Find out about the rules, procedures and fees for registering a provincial corporation in New Brunswick.
Brunswick.
Brunswick.
∙ Incorporation of non-profit companies (New Brunswick)
∙ Incorporation of non-profit companies (New Brunswick)
∙ Incorporation of non-profit companies (New Brunswick)
Find out about the rules, procedures and fees for incorporating a not-for-profit company in Find out about the rules, procedures and fees for incorporating a not-for-profit company in
Find out about the rules, procedures and fees for incorporating a not-for-profit company in New Brunswick.
New Brunswick.
New Brunswick.
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www.CanadaStartups.org 30
Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador
∙ Registry of Companies (Newfoundland and Labrador)
∙ Registry of Companies (Newfoundland and Labrador)
∙ Registry of Companies (Newfoundland and Labrador)
In Newfoundland and Labrador, you must register with the Registry of Companies if you In Newfoundland and Labrador, you must register with the Registry of Companies if you
In Newfoundland and Labrador, you must register with the Registry of Companies if you decide to incorporate provincially.
decide to incorporate provincially.
decide to incorporate provincially.
Northwest Territories
Northwest Territories
Northwest Territories
∙ Corporate Registries — Co-operative Associations
∙ Corporate Registries — Co-operative Associations
∙ Corporate Registries — Co-operative Associations
Are you looking to establish and incorporate a co-operative within the Northwest Territories? Are you looking to establish and incorporate a co-operative within the Northwest Territories?
Are you looking to establish and incorporate a co-operative within the Northwest Territories? Find out the rules pertaining to venture start-up and what is needed to remain compliant with
Find out the rules pertaining to venture start-up and what is needed to remain compliant with
Find out the rules pertaining to venture start-up and what is needed to remain compliant with the law.
the law.
the law.
∙ Corporate Registries — Business Corporations
∙ Corporate Registries — Business Corporations
∙ Corporate Registries — Business Corporations
Are you looking to incorporate your business? Find out how you can register to do business in Are you looking to incorporate your business? Find out how you can register to do business in
Are you looking to incorporate your business? Find out how you can register to do business in the Northwest Territories.
the Northwest Territories.
the Northwest Territories.
∙ Corporate Registries — Societies
∙ Corporate Registries — Societies
∙ Corporate Registries — Societies
Are you interested in starting a society or non-profit organization? Find out the benefits of Are you interested in starting a society or non-profit organization? Find out the benefits of
Are you interested in starting a society or non-profit organization? Find out the benefits of incorporation and what you are required to do at the territorial and federal levels.
incorporation and what you are required to do at the territorial and federal levels. incorporation and what you are required to do at the territorial and federal levels.
Nova Scotia
Nova Scotia
Nova Scotia
∙ Business incorporation and registration
∙ Business incorporation and registration
∙ Business incorporation and registration
Incorporate your business provincially through the Nova Scotia Registry of Joint Stock Incorporate your business provincially through the Nova Scotia Registry of Joint Stock
Incorporate your business provincially through the Nova Scotia Registry of Joint Stock Companies.
Companies.
Companies.
Nunavut
Nunavut
Nunavut
∙ Legal registries (Nunavut)
∙ Legal registries (Nunavut)
∙ Legal registries (Nunavut)
In order to do business in Nunavut, you must register with the territory, even if you live in or In order to do business in Nunavut, you must register with the territory, even if you live in or
In order to do business in Nunavut, you must register with the territory, even if you live in or have a business established in another part of Canada.
have a business established in another part of Canada.
have a business established in another part of Canada.
Ontario
Ontario
Ontario
∙ Ontario Business Incorporation
∙ Ontario Business Incorporation
∙ Ontario Business Incorporation
Incorporate your Ontario business online, in person, or by mail.
Incorporate your Ontario business online, in person, or by mail.
Incorporate your Ontario business online, in person, or by mail.
∙ Professional corporations
∙ Professional corporations
∙ Professional corporations
Find out how you can incorporate your practice in Ontario for specific regulated professions. Find out how you can incorporate your practice in Ontario for specific regulated professions.
Find out how you can incorporate your practice in Ontario for specific regulated professions. ∙ Making changes to your corporate information
∙ Making changes to your corporate information
∙ Making changes to your corporate information
Find out how to make changes to the information about your Ontario corporation, including Find out how to make changes to the information about your Ontario corporation, including
Find out how to make changes to the information about your Ontario corporation, including its name, address and number of directors.
its name, address and number of directors.
its name, address and number of directors.
∙ Reviving your corporation
∙ Reviving your corporation
∙ Reviving your corporation
You may be able to revive your Ontario corporation if it was involuntarily dissolved within the You may be able to revive your Ontario corporation if it was involuntarily dissolved within the
You may be able to revive your Ontario corporation if it was involuntarily dissolved within the last 20 years.
last 20 years.
last 20 years.
Prince Edward Island
Prince Edward Island
Prince Edward Island
∙ Corporate services — Business name registration
∙ Corporate services — Business name registration
∙ Corporate services — Business name registration
Register your business name in Prince Edward Island to prevent other organizations Register your business name in Prince Edward Island to prevent other organizations
Register your business name in Prince Edward Island to prevent other organizations from using the same name.
from using the same name.
from using the same name.
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
Québec
Québec
Québec
∙ Incorporate a business (Quebec)
∙ Incorporate a business (Quebec)
∙ Incorporate a business (Quebec)
Learn the steps to incorporate your business in Quebec- find the forms to be filled out and Learn the steps to incorporate your business in Quebec- find the forms to be filled out and
Learn the steps to incorporate your business in Quebec- find the forms to be filled out and review the application process.
review the application process.
review the application process.
Saskatchewan
Saskatchewan
Saskatchewan
∙ Incorporating your business in Saskatchewan
∙ Incorporating your business in Saskatchewan
∙ Incorporating your business in Saskatchewan
Find out how to incorporate your business in Saskatchewan, including fees, forms required, and Find out how to incorporate your business in Saskatchewan, including fees, forms required, and
Find out how to incorporate your business in Saskatchewan, including fees, forms required, and turn-around time.
turn-around time.
turn-around time.
∙ Registering an extra-provincial corporation in Saskatchewan
∙ Registering an extra-provincial corporation in Saskatchewan
∙ Registering an extra-provincial corporation in Saskatchewan
If you own an out-of-province corporation and are doing business in Saskatchewan, you will If you own an out-of-province corporation and are doing business in Saskatchewan, you will
If you own an out-of-province corporation and are doing business in Saskatchewan, you will have to extra-provincially incorporate that business in Saskatchewan.
have to extra-provincially incorporate that business in Saskatchewan.
have to extra-provincially incorporate that business in Saskatchewan.
∙ Forming a non-profit corporation in Saskatchewan
∙ Forming a non-profit corporation in Saskatchewan
∙ Forming a non-profit corporation in Saskatchewan
Find out how to register your non-profit corporation in Saskatchewan, including fees, forms Find out how to register your non-profit corporation in Saskatchewan, including fees, forms
Find out how to register your non-profit corporation in Saskatchewan, including fees, forms required, and turn-around time
required, and turn-around time
required, and turn-around time
Yukon
Yukon
Yukon
∙ Business registration in the Yukon
∙ Business registration in the Yukon
∙ Business registration in the Yukon
In order to register your business in the Yukon, you will need to contact Corporate Affairs. In order to register your business in the Yukon, you will need to contact Corporate Affairs. In order to register your business in the Yukon, you will need to contact Corporate Affairs.
Permits, licenses and regulations
Permits, licenses and regulations
Permits, licenses and regulations
Before you launch your small business, be sure to investigate whether you require certain permits or Before you launch your small business, be sure to investigate whether you require certain permits or
Before you launch your small business, be sure to investigate whether you require certain permits or licenses.
licenses.
licenses.
Use the following link to check permits and licenses in your area of business.
Use the following link to check permits and licenses in your area of business.
Use the following link to check permits and licenses in your area of business.
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Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
7. BUSINESS PLANNING
7. BUSINESS PLANNING
7. BUSINESS PLANNING
When starting out, an important tool for building a successful and long lasting business is a When starting out, an important tool for building a successful and long lasting business is a
When starting out, an important tool for building a successful and long lasting business is a professionally written business plan. A precise plan for your small business is an asset and benefits
professionally written business plan. A precise plan for your small business is an asset and benefits
professionally written business plan. A precise plan for your small business is an asset and benefits everyone involved. Regardless of whether this is your first attempt or you have been doing this for
everyone involved. Regardless of whether this is your first attempt or you have been doing this for
everyone involved. Regardless of whether this is your first attempt or you have been doing this for years, you need to grow your small business. A business plan is the key to growth.
years, you need to grow your small business. A business plan is the key to growth. years, you need to grow your small business. A business plan is the key to growth.
Why do you need a business plan?
Why do you need a business plan?
Why do you need a business plan?
Think of your business plan as if it were an actual employee you have hired. You want your plan to Think of your business plan as if it were an actual employee you have hired. You want your plan to
Think of your business plan as if it were an actual employee you have hired. You want your plan to promote and protect your interests. Your plan should speak for your business and advise you when you
promote and protect your interests. Your plan should speak for your business and advise you when you
promote and protect your interests. Your plan should speak for your business and advise you when you are making positive steps forward and alert you to risks on the horizon. Most importantly, your plan
are making positive steps forward and alert you to risks on the horizon. Most importantly, your plan
are making positive steps forward and alert you to risks on the horizon. Most importantly, your plan should guide you as to where you need to go next. It is your number one salesperson.
should guide you as to where you need to go next. It is your number one salesperson. should guide you as to where you need to go next. It is your number one salesperson. Why a sales person? Well, a
Why a sales person? Well, a
Why a sales person? Well, a
professionally written business plan
professionally written business plan
professionally written business plan
must be able to convince its readers
must be able to convince its readers
must be able to convince its readers
that your small business has the
that your small business has the
that your small business has the
potential for success. In a business plan,
potential for success. In a business plan,
potential for success. In a business plan,
your enthusiasm, dedication,
your enthusiasm, dedication,
your enthusiasm, dedication,
knowledge and confidence should be
knowledge and confidence should be
knowledge and confidence should be
clear to the reader. When developing
clear to the reader. When developing
clear to the reader. When developing
your business plan, remember to avoid
your business plan, remember to avoid
your business plan, remember to avoid
being too technical try not to overuse
being too technical try not to overuse
being too technical try not to overuse
terms and diagrams that may be
terms and diagrams that may be
terms and diagrams that may be
unfamiliar to the average reader.
unfamiliar to the average reader.
unfamiliar to the average reader.
Keep in mind that the business plan is a
Keep in mind that the business plan is a
Keep in mind that the business plan is a
road map to success. No matter the
road map to success. No matter the
road map to success. No matter the
reader- a bank, funding agency,
reader- a bank, funding agency,
reader- a bank, funding agency,
potential investor, or a friend – you should draft the plan using plain language so that it is easily potential investor, or a friend – you should draft the plan using plain language so that it is easily
potential investor, or a friend – you should draft the plan using plain language so that it is easily understood by all.
understood by all.
understood by all.
Depending on who you are writing the business plan for, the most effective plans are constantly Depending on who you are writing the business plan for, the most effective plans are constantly
Depending on who you are writing the business plan for, the most effective plans are constantly evolving as your business grows. It is important to include the current status of your business, but also
evolving as your business grows. It is important to include the current status of your business, but also
evolving as your business grows. It is important to include the current status of your business, but also to show growth year over year, and to present current, past, and future goals. Highlight your
to show growth year over year, and to present current, past, and future goals. Highlight your
to show growth year over year, and to present current, past, and future goals. Highlight your achievements and any improvements that may currently be underway.
achievements and any improvements that may currently be underway.
achievements and any improvements that may currently be underway.
If you are starting a business, your business plan will help you:
If you are starting a business, your business plan will help you:
If you are starting a business, your business plan will help you:
∙ Turn your idea into a viable small business
∙ Turn your idea into a viable small business
∙ Turn your idea into a viable small business
∙ Obtain financing from lenders and investors
∙ Obtain financing from lenders and investors
∙ Obtain financing from lenders and investors
∙ Showcase your strengths, weaknesses, opportunities, and threats
∙ Showcase your strengths, weaknesses, opportunities, and threats
∙ Showcase your strengths, weaknesses, opportunities, and threats
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If you are managing an existing business, a business plan will help you:
If you are managing an existing business, a business plan will help you:
If you are managing an existing business, a business plan will help you:
∙ Communicate your vision to your employees
∙ Communicate your vision to your employees
∙ Communicate your vision to your employees
∙ Develop an accurate financial forecast
∙ Develop an accurate financial forecast
∙ Develop an accurate financial forecast
∙ Compare your plan with actual performance
∙ Compare your plan with actual performance
∙ Compare your plan with actual performance
If you are growing your business, a business plan can help you:
If you are growing your business, a business plan can help you:
If you are growing your business, a business plan can help you:
∙ Raise capital to expand your small business
∙ Raise capital to expand your small business
∙ Raise capital to expand your small business
∙ Create a strategy to manage your growth
∙ Create a strategy to manage your growth
∙ Create a strategy to manage your growth
∙ Take advantage of clear and visible opportunities
∙ Take advantage of clear and visible opportunities
∙ Take advantage of clear and visible opportunities
If you are shutting down your business, a business plan can help you:
If you are shutting down your business, a business plan can help you:
If you are shutting down your business, a business plan can help you:
∙ Develop a plan to transfer ownership, sell or close your business
∙ Develop a plan to transfer ownership, sell or close your business
∙ Develop a plan to transfer ownership, sell or close your business
∙ Establish a timeline for the transition process
∙ Establish a timeline for the transition process
∙ Establish a timeline for the transition process
∙ Identify any financial requirements
∙ Identify any financial requirements
∙ Identify any financial requirements
As you can see, no matter what stage you are in, having a documented business plan can help you As you can see, no matter what stage you are in, having a documented business plan can help you
As you can see, no matter what stage you are in, having a documented business plan can help you succeed and move forward with your venture.
succeed and move forward with your venture.
succeed and move forward with your venture.
The different types of business plans
The different types of business plans
The different types of business plans
Business plans only differ based on how much versus how little information is provided. Some plans are Business plans only differ based on how much versus how little information is provided. Some plans are
Business plans only differ based on how much versus how little information is provided. Some plans are very brief -only five pages. While others can be quite extensive – covering 5 to 10 years of details and
very brief -only five pages. While others can be quite extensive – covering 5 to 10 years of details and
very brief -only five pages. While others can be quite extensive – covering 5 to 10 years of details and strategies.
strategies.
strategies.
A long term business plan isn’t always necessary for startup businesses, but it is recommended. A long term business plan isn’t always necessary for startup businesses, but it is recommended. A long term business plan isn’t always necessary for startup businesses, but it is recommended. A business plan paves the path you need to follow to obtain and achieve your goals in order to have
A business plan paves the path you need to follow to obtain and achieve your goals in order to have
A business plan paves the path you need to follow to obtain and achieve your goals in order to have your business succeed. A business plan is like a mentor, somebody who guides you and tells you the
your business succeed. A business plan is like a mentor, somebody who guides you and tells you the
your business succeed. A business plan is like a mentor, somebody who guides you and tells you the next step to take. Most startup business plans only reflect the first year – especially if you are unfamiliar
next step to take. Most startup business plans only reflect the first year – especially if you are unfamiliar
next step to take. Most startup business plans only reflect the first year – especially if you are unfamiliar with business or don’t know what to expect in the first 12 months.
with business or don’t know what to expect in the first 12 months.
with business or don’t know what to expect in the first 12 months.
But thinking ahead-putting together a 5 year plan-can’t hurt, even if after the first few months that plan But thinking ahead-putting together a 5 year plan-can’t hurt, even if after the first few months that plan
But thinking ahead-putting together a 5 year plan-can’t hurt, even if after the first few months that plan has to change.
has to change.
has to change.
Your choice of what plan is really dependent on who you are developing the plan for. Are you writing Your choice of what plan is really dependent on who you are developing the plan for. Are you writing
Your choice of what plan is really dependent on who you are developing the plan for. Are you writing the plan for your business partners? Are you trying to attract investors? Are you hoping to obtain
the plan for your business partners? Are you trying to attract investors? Are you hoping to obtain
the plan for your business partners? Are you trying to attract investors? Are you hoping to obtain financing from a bank? Do you want to apply for a government grant, loan, or some other financial
financing from a bank? Do you want to apply for a government grant, loan, or some other financial
financing from a bank? Do you want to apply for a government grant, loan, or some other financial assistance? Is it an operational day to day plan? Is it a means to communicate the blueprint of your
assistance? Is it an operational day to day plan? Is it a means to communicate the blueprint of your
assistance? Is it an operational day to day plan? Is it a means to communicate the blueprint of your business to your employees?
business to your employees?
business to your employees?
What is the difference between these plans you ask? Well, each plan should be written to specifically What is the difference between these plans you ask? Well, each plan should be written to specifically
What is the difference between these plans you ask? Well, each plan should be written to specifically address the questions, concerns, wants, and needs of the reader.
address the questions, concerns, wants, and needs of the reader.
address the questions, concerns, wants, and needs of the reader.
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Think of it this way; if you have a technical plan which could help you train your employees on Think of it this way; if you have a technical plan which could help you train your employees on
Think of it this way; if you have a technical plan which could help you train your employees on becoming more familiar with your business and operations– this isn’t the type of plan you would
becoming more familiar with your business and operations– this isn’t the type of plan you would
becoming more familiar with your business and operations– this isn’t the type of plan you would provide to an investor. On the other hand, if you are writing a full out business plan with your goals,
provide to an investor. On the other hand, if you are writing a full out business plan with your goals,
provide to an investor. On the other hand, if you are writing a full out business plan with your goals, ways to achieve them, the financials, and your current plan, a 5 year plan, financial forecasts..etc. – this
ways to achieve them, the financials, and your current plan, a 5 year plan, financial forecasts..etc. – this
ways to achieve them, the financials, and your current plan, a 5 year plan, financial forecasts..etc. – this is the type of plan you use to show to investors.
is the type of plan you use to show to investors.
is the type of plan you use to show to investors.
Investors aren’t necessarily concerned about your day to day operations. Their concern is that the Investors aren’t necessarily concerned about your day to day operations. Their concern is that the
Investors aren’t necessarily concerned about your day to day operations. Their concern is that the money or time they are contributing is guaranteed to result in a positive outcome. Tell them what that
money or time they are contributing is guaranteed to result in a positive outcome. Tell them what that
money or time they are contributing is guaranteed to result in a positive outcome. Tell them what that is and how you plan on giving it to them.
is and how you plan on giving it to them.
is and how you plan on giving it to them.
If you are writing a business plan to obtain government financing (e.g. grants, loans or another form of If you are writing a business plan to obtain government financing (e.g. grants, loans or another form of
If you are writing a business plan to obtain government financing (e.g. grants, loans or another form of assistance from the Canadian government), you have to keep a few things in mind:
assistance from the Canadian government), you have to keep a few things in mind: assistance from the Canadian government), you have to keep a few things in mind: ∙ Is your business plan relevant to the government agency you are applying to? ∙ Is your business plan relevant to the government agency you are applying to?
∙ Is your business plan relevant to the government agency you are applying to? ∙ What makes your business idea unique and likely to obtain funding?
∙ What makes your business idea unique and likely to obtain funding?
∙ What makes your business idea unique and likely to obtain funding?
∙ What do you need funding for? What would you do with the assistance?
∙ What do you need funding for? What would you do with the assistance?
∙ What do you need funding for? What would you do with the assistance?
∙ Do you meet the criteria to receive government funding?
∙ Do you meet the criteria to receive government funding?
∙ Do you meet the criteria to receive government funding?
Keep in mind that the Canadian government receives thousands of funding applications each day. Keep in mind that the Canadian government receives thousands of funding applications each day.
Keep in mind that the Canadian government receives thousands of funding applications each day. Although our government hands out billions of dollars each year to small business owners, you must
Although our government hands out billions of dollars each year to small business owners, you must
Although our government hands out billions of dollars each year to small business owners, you must meet strict criteria in order to apply and before you can obtain funding.
meet strict criteria in order to apply and before you can obtain funding.
meet strict criteria in order to apply and before you can obtain funding.
It is important to know which agency of the government has the funds you are looking for. It is important to know which agency of the government has the funds you are looking for. It is important to know which agency of the government has the funds you are looking for. For example, if your work is in the agriculture industry, you most likely won’t apply to a government
For example, if your work is in the agriculture industry, you most likely won’t apply to a government
For example, if your work is in the agriculture industry, you most likely won’t apply to a government agency that focuses on funding retail and hospitality ventures. Be sure to research the different
agency that focuses on funding retail and hospitality ventures. Be sure to research the different
agency that focuses on funding retail and hospitality ventures. Be sure to research the different agencies and different types of funding programs available.
agencies and different types of funding programs available.
agencies and different types of funding programs available.
Your idea is unique. Your business plan must be unique as well. What makes your application stand out Your idea is unique. Your business plan must be unique as well. What makes your application stand out
Your idea is unique. Your business plan must be unique as well. What makes your application stand out from the numerous other applications requesting funding the government may have received that day?
from the numerous other applications requesting funding the government may have received that day?
from the numerous other applications requesting funding the government may have received that day? Add a little bit of spice to your business plan to make it unique, make it stand out from your funding
Add a little bit of spice to your business plan to make it unique, make it stand out from your funding
Add a little bit of spice to your business plan to make it unique, make it stand out from your funding competitors. Do all that you can to ensure your application is picked up, reviewed, and flagged for
competitors. Do all that you can to ensure your application is picked up, reviewed, and flagged for
competitors. Do all that you can to ensure your application is picked up, reviewed, and flagged for funding.
funding.
funding.
Within your business plan it is important to demonstrate why you need the funding or assistance – Within your business plan it is important to demonstrate why you need the funding or assistance –
Within your business plan it is important to demonstrate why you need the funding or assistance – explain and show how your business would thrive if boosted by obtaining some financial assistance
explain and show how your business would thrive if boosted by obtaining some financial assistance
explain and show how your business would thrive if boosted by obtaining some financial assistance your business. Not knowing how much you need, what you need it for, and how you plan on using it, is
your business. Not knowing how much you need, what you need it for, and how you plan on using it, is
your business. Not knowing how much you need, what you need it for, and how you plan on using it, is like walking into a business meeting unprepared. Always be prepared.
like walking into a business meeting unprepared. Always be prepared.
like walking into a business meeting unprepared. Always be prepared.
Before you submit an application for funding be sure you fit the criteria for that government agency or Before you submit an application for funding be sure you fit the criteria for that government agency or
Before you submit an application for funding be sure you fit the criteria for that government agency or specific loan or grant. Each business funding program has its own set of guidelines to follow before you
specific loan or grant. Each business funding program has its own set of guidelines to follow before you
specific loan or grant. Each business funding program has its own set of guidelines to follow before you submit your application. Your chances of obtaining funding greatly increase if you pay strict attention
submit your application. Your chances of obtaining funding greatly increase if you pay strict attention
submit your application. Your chances of obtaining funding greatly increase if you pay strict attention to these rules and criteria.
to these rules and criteria.
to these rules and criteria.
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If for example, the program you are applying to states that only males 18-25 may apply, and you are 35 If for example, the program you are applying to states that only males 18-25 may apply, and you are 35
If for example, the program you are applying to states that only males 18-25 may apply, and you are 35 with no business partner in that age range, you will not be considered. Be sure to read and understand
with no business partner in that age range, you will not be considered. Be sure to read and understand
with no business partner in that age range, you will not be considered. Be sure to read and understand the guidelines before starting your application.
the guidelines before starting your application.
the guidelines before starting your application.
Taking your business plan to a bank for a business loan or line of credit is quite similar to pursuing a Taking your business plan to a bank for a business loan or line of credit is quite similar to pursuing a
Taking your business plan to a bank for a business loan or line of credit is quite similar to pursuing a government funding program. Your personal and business credit rating plays a major role in securing
government funding program. Your personal and business credit rating plays a major role in securing
government funding program. Your personal and business credit rating plays a major role in securing funding. Going to a bank and meeting with a business advisor is a must if you want to successfully
funding. Going to a bank and meeting with a business advisor is a must if you want to successfully
funding. Going to a bank and meeting with a business advisor is a must if you want to successfully secure financing for your small business.
secure financing for your small business.
secure financing for your small business.
Before trying to obtain financing from the banks, prepare yourself as follows:
Before trying to obtain financing from the banks, prepare yourself as follows:
Before trying to obtain financing from the banks, prepare yourself as follows:
∙ Know how much to ask for:
∙ Know how much to ask for:
∙ Know how much to ask for:
The amount you are trying to borrow is one of the first things a bank’s business advisor will The amount you are trying to borrow is one of the first things a bank’s business advisor will
The amount you are trying to borrow is one of the first things a bank’s business advisor will speak with you about. Knowing how much to ask for can often make or break the deal between
speak with you about. Knowing how much to ask for can often make or break the deal between
speak with you about. Knowing how much to ask for can often make or break the deal between you and your financial institution. Not only do you need to have the right figure, but you need
you and your financial institution. Not only do you need to have the right figure, but you need
you and your financial institution. Not only do you need to have the right figure, but you need to be able to explain why you need the funds, how you came to that amount, and what you plan
to be able to explain why you need the funds, how you came to that amount, and what you plan
to be able to explain why you need the funds, how you came to that amount, and what you plan on doing with it.
on doing with it.
on doing with it.
∙ Know your personal credit score:
∙ Know your personal credit score:
∙ Know your personal credit score:
Your personal credit score determines how willing your bank will be to lend the amount you’re Your personal credit score determines how willing your bank will be to lend the amount you’re
Your personal credit score determines how willing your bank will be to lend the amount you’re proposing. Why is personal credit score important? Well, if for any reason your business fails
proposing. Why is personal credit score important? Well, if for any reason your business fails
proposing. Why is personal credit score important? Well, if for any reason your business fails and you’ve borrowed money from the bank, the financial institution wants to ensure they can
and you’ve borrowed money from the bank, the financial institution wants to ensure they can
and you’ve borrowed money from the bank, the financial institution wants to ensure they can get their money back. They will hold you personally liable. Thus, a satisfactory personal credit
get their money back. They will hold you personally liable. Thus, a satisfactory personal credit
get their money back. They will hold you personally liable. Thus, a satisfactory personal credit score is very important. Know your credit score before you go into the bank to apply for
score is very important. Know your credit score before you go into the bank to apply for
score is very important. Know your credit score before you go into the bank to apply for financing.
financing.
financing.
∙ Know what you have to offer:
∙ Know what you have to offer:
∙ Know what you have to offer:
Your business idea may be great, and your business plan may be flawless – but when it comes Your business idea may be great, and your business plan may be flawless – but when it comes
Your business idea may be great, and your business plan may be flawless – but when it comes to banks lending you money for your small business venture; they have to ensure that they are
to banks lending you money for your small business venture; they have to ensure that they are
to banks lending you money for your small business venture; they have to ensure that they are protected. You must have some assets to offer in return to the bank if you fail to repay.
protected. You must have some assets to offer in return to the bank if you fail to repay.
protected. You must have some assets to offer in return to the bank if you fail to repay. Personal assets like a house or a fully owned vehicle are an example of property you can
Personal assets like a house or a fully owned vehicle are an example of property you can
Personal assets like a house or a fully owned vehicle are an example of property you can leverage to obtain a higher loan. But remember, they are also on the hook in case you can’t
leverage to obtain a higher loan. But remember, they are also on the hook in case you can’t
leverage to obtain a higher loan. But remember, they are also on the hook in case you can’t return on your loan amount.
return on your loan amount.
return on your loan amount.
Aside from government and financial institutions, you may be writing a business plan for potential Aside from government and financial institutions, you may be writing a business plan for potential
Aside from government and financial institutions, you may be writing a business plan for potential partners or investors to join your business or provide funding for your startup. The type of business plan
partners or investors to join your business or provide funding for your startup. The type of business plan
partners or investors to join your business or provide funding for your startup. The type of business plan you present in this case isn’t much different from the one you would provide to a government funding
you present in this case isn’t much different from the one you would provide to a government funding
you present in this case isn’t much different from the one you would provide to a government funding agency or to a financial institution.
agency or to a financial institution.
agency or to a financial institution.
You should still pitch your business idea to all interested parties and using your business plan, show You should still pitch your business idea to all interested parties and using your business plan, show
You should still pitch your business idea to all interested parties and using your business plan, show your potential partners or investors why your business is the one they should join or invest, and what
your potential partners or investors why your business is the one they should join or invest, and what
your potential partners or investors why your business is the one they should join or invest, and what their return will be. A key here is to ask for something that you need, whether it is money, advice, or
their return will be. A key here is to ask for something that you need, whether it is money, advice, or
their return will be. A key here is to ask for something that you need, whether it is money, advice, or contacts – and offer a fair return on their investment that you are comfortable with.
contacts – and offer a fair return on their investment that you are comfortable with. contacts – and offer a fair return on their investment that you are comfortable with.
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The last type of business plan is an operational business plan. No matter if you are aiming to obtain The last type of business plan is an operational business plan. No matter if you are aiming to obtain
The last type of business plan is an operational business plan. No matter if you are aiming to obtain funding, financing or assistance – a business plan always promotes good business behavior. Anybody
funding, financing or assistance – a business plan always promotes good business behavior. Anybody
funding, financing or assistance – a business plan always promotes good business behavior. Anybody starting a business should do a business plan regardless of their industry, idea or experience.
starting a business should do a business plan regardless of their industry, idea or experience. starting a business should do a business plan regardless of their industry, idea or experience. An operational business plan is simply what it sounds like “operational”. It is a plan that makes your An operational business plan is simply what it sounds like “operational”. It is a plan that makes your
An operational business plan is simply what it sounds like “operational”. It is a plan that makes your business function and operate on paper. From your strengths to your weaknesses, an operational plan
business function and operate on paper. From your strengths to your weaknesses, an operational plan
business function and operate on paper. From your strengths to your weaknesses, an operational plan shows you where you are, what you need to do, and where you need to go in order to achieve your end
shows you where you are, what you need to do, and where you need to go in order to achieve your end
shows you where you are, what you need to do, and where you need to go in order to achieve your end goal. Operational plans can be split into 3 sections; strategic, tactical, and operational. Each section has
goal. Operational plans can be split into 3 sections; strategic, tactical, and operational. Each section has
goal. Operational plans can be split into 3 sections; strategic, tactical, and operational. Each section has its own goal.
its own goal.
its own goal.
A strategic business plan section of the operational approach is to be very broad and general as to the A strategic business plan section of the operational approach is to be very broad and general as to the
A strategic business plan section of the operational approach is to be very broad and general as to the mission of the company, its future goals and ambitions. The tactical plan is very specific as to the
mission of the company, its future goals and ambitions. The tactical plan is very specific as to the
mission of the company, its future goals and ambitions. The tactical plan is very specific as to the actions to take to support the work towards the strategic plan goal. Lastly, the operational plan section
actions to take to support the work towards the strategic plan goal. Lastly, the operational plan section
actions to take to support the work towards the strategic plan goal. Lastly, the operational plan section is extremely detailed (the who, what, where, when and why), and supports the day to day actions and
is extremely detailed (the who, what, where, when and why), and supports the day to day actions and
is extremely detailed (the who, what, where, when and why), and supports the day to day actions and processes which enable the tactical plan.
processes which enable the tactical plan.
processes which enable the tactical plan.
Whichever plan you decide to start with, it’s important to follow the proper business plan writing Whichever plan you decide to start with, it’s important to follow the proper business plan writing
Whichever plan you decide to start with, it’s important to follow the proper business plan writing guidelines. These guidelines have been outlined for you later on in the guide, so be sure to review them
guidelines. These guidelines have been outlined for you later on in the guide, so be sure to review them
guidelines. These guidelines have been outlined for you later on in the guide, so be sure to review them before starting your business plan.
before starting your business plan.
before starting your business plan.
Something else that may assist you in developing your business plan could be a sample business plan or Something else that may assist you in developing your business plan could be a sample business plan or
Something else that may assist you in developing your business plan could be a sample business plan or a business plan template you can refer to – to gauge what you need to do for your own plan.
a business plan template you can refer to – to gauge what you need to do for your own plan. a business plan template you can refer to – to gauge what you need to do for your own plan. Sample business plans or templates can help you develop a professional document which will Sample business plans or templates can help you develop a professional document which will
Sample business plans or templates can help you develop a professional document which will eventually serve as a sales or marketing tool to help you convince others of your business’ potential.
eventually serve as a sales or marketing tool to help you convince others of your business’ potential. eventually serve as a sales or marketing tool to help you convince others of your business’ potential. Keep in mind that it’s often recommended to hire a professional to complete a business plan for you. Keep in mind that it’s often recommended to hire a professional to complete a business plan for you.
Keep in mind that it’s often recommended to hire a professional to complete a business plan for you. But before you go to a professional, drawing up your own version is one of the best ways to ensure that
But before you go to a professional, drawing up your own version is one of the best ways to ensure that
But before you go to a professional, drawing up your own version is one of the best ways to ensure that you provide the professional writer everything you want to include in the business plan. It may be
you provide the professional writer everything you want to include in the business plan. It may be
you provide the professional writer everything you want to include in the business plan. It may be difficult and time consuming but if you can put down the ideas of your own business, in your own words,
difficult and time consuming but if you can put down the ideas of your own business, in your own words,
difficult and time consuming but if you can put down the ideas of your own business, in your own words, a professional writer can then craft it into the perfect sales or marketing document you need to move
a professional writer can then craft it into the perfect sales or marketing document you need to move
a professional writer can then craft it into the perfect sales or marketing document you need to move your business forward.
your business forward.
your business forward.
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8. FINANCING YOUR BUSINESS 8. FINANCING YOUR BUSINESS 8. FINANCING YOUR BUSINESS If you are planning on starting your own small business, you will need money to get started. One of the
If you are planning on starting your own small business, you will need money to get started. One of the
If you are planning on starting your own small business, you will need money to get started. One of the main reasons so many new small businesses end up failing in either the initial pre-launch stage, or
main reasons so many new small businesses end up failing in either the initial pre-launch stage, or
main reasons so many new small businesses end up failing in either the initial pre-launch stage, or within the first year is due to a lack of capital investment or overspending. Therefore, before you even
within the first year is due to a lack of capital investment or overspending. Therefore, before you even
within the first year is due to a lack of capital investment or overspending. Therefore, before you even start up, know exactly how much money you actually need to launch, to run your small business – and
start up, know exactly how much money you actually need to launch, to run your small business – and
start up, know exactly how much money you actually need to launch, to run your small business – and to reach a profitable point.
to reach a profitable point.
to reach a profitable point.
Why is having money important to start a business? Why is having money important to start a business? Why is having money important to start a business?
To be frank, if you are asking yourself why money is needed to start a business – you may be on the To be frank, if you are asking yourself why money is needed to start a business – you may be on the
To be frank, if you are asking yourself why money is needed to start a business – you may be on the wrong career path. You’ve likely heard the saying, “It takes money to make money!” 99.9% of the time
wrong career path. You’ve likely heard the saying, “It takes money to make money!” 99.9% of the time
wrong career path. You’ve likely heard the saying, “It takes money to make money!” 99.9% of the time this is true.
this is true.
this is true.
When starting a small business you will
When starting a small business you will
When starting a small business you will
have many expenses, even if you are
have many expenses, even if you are
have many expenses, even if you are
planning a low cost start-up. Capital
planning a low cost start-up. Capital
planning a low cost start-up. Capital
investment isn’t just needed to buy
investment isn’t just needed to buy
investment isn’t just needed to buy
equipment, hire staff, or start marketing.
equipment, hire staff, or start marketing.
equipment, hire staff, or start marketing.
It can be used for expenses such as
It can be used for expenses such as
It can be used for expenses such as
business registration, filling up your gas
business registration, filling up your gas
business registration, filling up your gas
tank to go meet suppliers, or to pay
tank to go meet suppliers, or to pay
tank to go meet suppliers, or to pay
yourself a small income in order to
yourself a small income in order to
yourself a small income in order to
survive until your business takes off-
survive until your business takes off-
survive until your business takes off-
especially if you are unemployed.
especially if you are unemployed.
especially if you are unemployed.
So why is money important when starting a business? In the initial stages of a business start-up, you do So why is money important when starting a business? In the initial stages of a business start-up, you do
So why is money important when starting a business? In the initial stages of a business start-up, you do in fact have to do the research, get the idea started, create a business plan, and develop the business
in fact have to do the research, get the idea started, create a business plan, and develop the business
in fact have to do the research, get the idea started, create a business plan, and develop the business connections you will need to be successful. These things aren’t typically free so you should get an idea
connections you will need to be successful. These things aren’t typically free so you should get an idea
connections you will need to be successful. These things aren’t typically free so you should get an idea of how much money you will need.
of how much money you will need.
of how much money you will need.
Everything in business costs money. Underestimating how much money you need could mean failure Everything in business costs money. Underestimating how much money you need could mean failure
Everything in business costs money. Underestimating how much money you need could mean failure for your small business. Your first priority before starting your business should be to accurately
for your small business. Your first priority before starting your business should be to accurately
for your small business. Your first priority before starting your business should be to accurately estimate how much money it will take you to start up, launch, and operate the business. Doing so will
estimate how much money it will take you to start up, launch, and operate the business. Doing so will
estimate how much money it will take you to start up, launch, and operate the business. Doing so will require that you conduct additional research to get the most accurate numbers.
require that you conduct additional research to get the most accurate numbers.
require that you conduct additional research to get the most accurate numbers.
So whether you think you need $5,000 or $500,000 for your business, don’t make a “guestimate”. This So whether you think you need $5,000 or $500,000 for your business, don’t make a “guestimate”. This
So whether you think you need $5,000 or $500,000 for your business, don’t make a “guestimate”. This just won’t work. You will actually need solid numbers. Accurately gauging how much money you need is
just won’t work. You will actually need solid numbers. Accurately gauging how much money you need is
just won’t work. You will actually need solid numbers. Accurately gauging how much money you need is crucial to success. It is better to overestimate and have money left over, rather than underestimate and
crucial to success. It is better to overestimate and have money left over, rather than underestimate and
crucial to success. It is better to overestimate and have money left over, rather than underestimate and run out of money before you even start.
run out of money before you even start.
run out of money before you even start.
In order to figure out how much money you need, it is recommended that you:
In order to figure out how much money you need, it is recommended that you:
In order to figure out how much money you need, it is recommended that you:
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∙ Start networking. Connect with as many business owners as possible.
∙ Start networking. Connect with as many business owners as possible.
∙ Start networking. Connect with as many business owners as possible.
Figure out how much it cost them to start up. If you can get somebody in the same industry as Figure out how much it cost them to start up. If you can get somebody in the same industry as
Figure out how much it cost them to start up. If you can get somebody in the same industry as you, even better! Their estimates and experience may give you a clearer financial picture.
you, even better! Their estimates and experience may give you a clearer financial picture. you, even better! Their estimates and experience may give you a clearer financial picture.
∙ Contact your suppliers
∙ Contact your suppliers
∙ Contact your suppliers
You can figure out approximate operational costs by contacting your suppliers. If your business You can figure out approximate operational costs by contacting your suppliers. If your business
You can figure out approximate operational costs by contacting your suppliers. If your business is selling a product obtained from certain suppliers, figure out how much it costs, are there
is selling a product obtained from certain suppliers, figure out how much it costs, are there
is selling a product obtained from certain suppliers, figure out how much it costs, are there minimum orders, and what the process for ordering and payment is. This way you will have a
minimum orders, and what the process for ordering and payment is. This way you will have a
minimum orders, and what the process for ordering and payment is. This way you will have a better idea of some of your start-up costs in obtaining and selling your inventory.
better idea of some of your start-up costs in obtaining and selling your inventory. better idea of some of your start-up costs in obtaining and selling your inventory.
∙ Contact Ministries and Business Offices
∙ Contact Ministries and Business Offices
∙ Contact Ministries and Business Offices
Local business centers will be able to assist you in answering some of the questions you may Local business centers will be able to assist you in answering some of the questions you may
Local business centers will be able to assist you in answering some of the questions you may have. Some even have start-up information and cost estimates. If your business requires certain
have. Some even have start-up information and cost estimates. If your business requires certain
have. Some even have start-up information and cost estimates. If your business requires certain licenses, those costs may be shown to you here.
licenses, those costs may be shown to you here.
licenses, those costs may be shown to you here.
∙ Check the web
∙ Check the web
∙ Check the web
The internet is your best friend when it comes to research and starting a small business. Not The internet is your best friend when it comes to research and starting a small business. Not
The internet is your best friend when it comes to research and starting a small business. Not only will it help you research and promote your business, but it can also give you a better idea of
only will it help you research and promote your business, but it can also give you a better idea of
only will it help you research and promote your business, but it can also give you a better idea of startup costs for certain things. Whether it’s the fee to get a business plan drawn up, costs of
startup costs for certain things. Whether it’s the fee to get a business plan drawn up, costs of
startup costs for certain things. Whether it’s the fee to get a business plan drawn up, costs of registering your business, or how much to spend purchasing equipment and supplies, the web
registering your business, or how much to spend purchasing equipment and supplies, the web
registering your business, or how much to spend purchasing equipment and supplies, the web has the answers.
has the answers.
has the answers.
When it comes to financing your business, be sure to avoid common mistakes such as: When it comes to financing your business, be sure to avoid common mistakes such as: When it comes to financing your business, be sure to avoid common mistakes such as: ∙ Neglecting to do research, or not doing enough of it
∙ Neglecting to do research, or not doing enough of it
∙ Neglecting to do research, or not doing enough of it
∙ Changing the amount of money you need for your business-or withdrawing little by little. ∙ Changing the amount of money you need for your business-or withdrawing little by little.
∙ Changing the amount of money you need for your business-or withdrawing little by little. ∙ Not calculating costs associated with growth potential into your cost equation
∙ Not calculating costs associated with growth potential into your cost equation
∙ Not calculating costs associated with growth potential into your cost equation ∙ Overspending and over borrowing
∙ Overspending and over borrowing
∙ Overspending and over borrowing
Once you have your figure, or what you feel is close to what you need to succeed, it is important to do Once you have your figure, or what you feel is close to what you need to succeed, it is important to do
Once you have your figure, or what you feel is close to what you need to succeed, it is important to do some calculations and ensure that you have some money left over after all of your expenses are paid.
some calculations and ensure that you have some money left over after all of your expenses are paid.
some calculations and ensure that you have some money left over after all of your expenses are paid. Remember that unexpected expenses may come up, and you need to have the funds to cover them in
Remember that unexpected expenses may come up, and you need to have the funds to cover them in
Remember that unexpected expenses may come up, and you need to have the funds to cover them in order to keep going.
order to keep going.
order to keep going.
Always expect the unexpected when it comes to financing your business.
Always expect the unexpected when it comes to financing your business.
Always expect the unexpected when it comes to financing your business.
Your next step is to take your business plan, implement the cost strategy, and build upon your financial Your next step is to take your business plan, implement the cost strategy, and build upon your financial
Your next step is to take your business plan, implement the cost strategy, and build upon your financial profile. If your plan is to start your business right, you may need to obtain funding from various sources
profile. If your plan is to start your business right, you may need to obtain funding from various sources
profile. If your plan is to start your business right, you may need to obtain funding from various sources – thus a good financial summary as part of your business plan is very important. Be sure to have the
– thus a good financial summary as part of your business plan is very important. Be sure to have the
– thus a good financial summary as part of your business plan is very important. Be sure to have the following questions answered:
following questions answered:
following questions answered:
∙ How much money do you need to start up, launch, and operate your business? ∙ How much money do you need to start up, launch, and operate your business?
∙ How much money do you need to start up, launch, and operate your business? ∙ How much money do you need to keep in the emergency business fund – for the unexpected?
∙ How much money do you need to keep in the emergency business fund – for the unexpected?
∙ How much money do you need to keep in the emergency business fund – for the unexpected? ∙ Where will you get the money from?
∙ Where will you get the money from?
∙ Where will you get the money from?
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∙ Whether personal, borrowed or invested-how do you plan on paying the money back? ∙ Whether personal, borrowed or invested-how do you plan on paying the money back?
∙ Whether personal, borrowed or invested-how do you plan on paying the money back? ∙ What do you intend to do with the money?
∙ What do you intend to do with the money?
∙ What do you intend to do with the money?
∙ How will you benefit from the financial investment?
∙ How will you benefit from the financial investment?
∙ How will you benefit from the financial investment?
∙ What if it doesn’t work out? What is your backup plan?
∙ What if it doesn’t work out? What is your backup plan?
∙ What if it doesn’t work out? What is your backup plan?
These are the questions you need to answer before you move forward with the financing of your These are the questions you need to answer before you move forward with the financing of your
These are the questions you need to answer before you move forward with the financing of your business idea.
business idea.
business idea.
When starting a business, you need to have the dollar amount it will cost you to startup, launch your When starting a business, you need to have the dollar amount it will cost you to startup, launch your
When starting a business, you need to have the dollar amount it will cost you to startup, launch your business, and run the day to day operations. With this amount in mind, take the next step. Either use
business, and run the day to day operations. With this amount in mind, take the next step. Either use
business, and run the day to day operations. With this amount in mind, take the next step. Either use your own money if you have it or start searching for a source to give or lend you the money. Keep in
your own money if you have it or start searching for a source to give or lend you the money. Keep in
your own money if you have it or start searching for a source to give or lend you the money. Keep in mind that the amount you estimate to run a successful business should also include an emergency
mind that the amount you estimate to run a successful business should also include an emergency
mind that the amount you estimate to run a successful business should also include an emergency supply – in case of those unexpected situations which all business experience at one point or another.
supply – in case of those unexpected situations which all business experience at one point or another. supply – in case of those unexpected situations which all business experience at one point or another.
Where will you get the money from?
Where will you get the money from?
Where will you get the money from?
When it comes to actually investing money into your small business, and after conducting the cost When it comes to actually investing money into your small business, and after conducting the cost
When it comes to actually investing money into your small business, and after conducting the cost analysis, you may be stuck. Where will you get the money? Consider the following:
analysis, you may be stuck. Where will you get the money? Consider the following:
analysis, you may be stuck. Where will you get the money? Consider the following:
∙ Use your own money from savings
∙ Use your own money from savings
∙ Use your own money from savings
∙ Use the money from your personal credit cards, or lines of credit
∙ Use the money from your personal credit cards, or lines of credit
∙ Use the money from your personal credit cards, or lines of credit
∙ Sell personal assets which you can liquidate quickly
∙ Sell personal assets which you can liquidate quickly
∙ Sell personal assets which you can liquidate quickly
∙ Borrow money from family and friends
∙ Borrow money from family and friends
∙ Borrow money from family and friends
∙ Borrow money from the bank
∙ Borrow money from the bank
∙ Borrow money from the bank
Most business owners don’t think of borrowing money in the initial stages because they aren’t 100% Most business owners don’t think of borrowing money in the initial stages because they aren’t 100%
Most business owners don’t think of borrowing money in the initial stages because they aren’t 100% confident which way the business will go. Instead, they end up using their own personal savings, their
confident which way the business will go. Instead, they end up using their own personal savings, their
confident which way the business will go. Instead, they end up using their own personal savings, their credit cards and borrow money from family or friends.
credit cards and borrow money from family or friends.
credit cards and borrow money from family or friends.
If you have a business partner or partners, they may be able to follow the same route and try to obtain If you have a business partner or partners, they may be able to follow the same route and try to obtain
If you have a business partner or partners, they may be able to follow the same route and try to obtain the funding you need for your business. If the personal search for funding fails, banks, private investors,
the funding you need for your business. If the personal search for funding fails, banks, private investors,
the funding you need for your business. If the personal search for funding fails, banks, private investors, and the government are the way to go.
and the government are the way to go.
and the government are the way to go.
Another way of obtaining funding is to go to your local financial institution and apply for a business loan Another way of obtaining funding is to go to your local financial institution and apply for a business loan
Another way of obtaining funding is to go to your local financial institution and apply for a business loan or line of credit. Obtaining a loan or line of credit may be difficult, but it is one of the more typical ways
or line of credit. Obtaining a loan or line of credit may be difficult, but it is one of the more typical ways
or line of credit. Obtaining a loan or line of credit may be difficult, but it is one of the more typical ways of financing your business, before going to private investors or the government.
of financing your business, before going to private investors or the government.
of financing your business, before going to private investors or the government.
Obtaining money from private investors is a good way to get quick cash flow into your business. Keep in Obtaining money from private investors is a good way to get quick cash flow into your business. Keep in
Obtaining money from private investors is a good way to get quick cash flow into your business. Keep in mind that investors all want a piece of the action -either part of the business, or a portion of the profits.
mind that investors all want a piece of the action -either part of the business, or a portion of the profits.
mind that investors all want a piece of the action -either part of the business, or a portion of the profits. You and your investor(s) can negotiate and agree upon these details. Depending on the individual, you
You and your investor(s) can negotiate and agree upon these details. Depending on the individual, you
You and your investor(s) can negotiate and agree upon these details. Depending on the individual, you may be better off with a private investor versus a bank. Some may not even charge interest but just
may be better off with a private investor versus a bank. Some may not even charge interest but just
may be better off with a private investor versus a bank. Some may not even charge interest but just want a return on the investment. However, be careful of the agreements and the terminology of what
want a return on the investment. However, be careful of the agreements and the terminology of what
want a return on the investment. However, be careful of the agreements and the terminology of what you decide if you fail to meet expectations and aren’t able to pay back the return.
you decide if you fail to meet expectations and aren’t able to pay back the return.
you decide if you fail to meet expectations and aren’t able to pay back the return.
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The government of Canada is a great way to obtain money for your small business. In fact, billions of The government of Canada is a great way to obtain money for your small business. In fact, billions of
The government of Canada is a great way to obtain money for your small business. In fact, billions of dollars are handed out each year to small business owners and entrepreneurs just like you. Finding the
dollars are handed out each year to small business owners and entrepreneurs just like you. Finding the
dollars are handed out each year to small business owners and entrepreneurs just like you. Finding the specific funding programs offered by government agencies that support start-ups, may be difficult. Our
specific funding programs offered by government agencies that support start-ups, may be difficult. Our
specific funding programs offered by government agencies that support start-ups, may be difficult. Our Center has the tools to direct you to the most applicable program for your situation.
Center has the tools to direct you to the most applicable program for your situation. Center has the tools to direct you to the most applicable program for your situation. The Canadian government provides start-up funding assistance with capital investment as well as The Canadian government provides start-up funding assistance with capital investment as well as
The Canadian government provides start-up funding assistance with capital investment as well as providing consulting and mentoring services.
providing consulting and mentoring services.
providing consulting and mentoring services.
No matter the type of services you seek for your new business, be sure to read the Financial Section of No matter the type of services you seek for your new business, be sure to read the Financial Section of
No matter the type of services you seek for your new business, be sure to read the Financial Section of this guide and review the available sources of financing for your small business. This will give you an
this guide and review the available sources of financing for your small business. This will give you an
this guide and review the available sources of financing for your small business. This will give you an upper hand in applying and obtaining money to start your venture.
upper hand in applying and obtaining money to start your venture.
upper hand in applying and obtaining money to start your venture.
Just remember the key questions:
Just remember the key questions:
Just remember the key questions:
∙ What do you intend to do with the money?
∙ What do you intend to do with the money?
∙ What do you intend to do with the money?
∙ How will you benefit from the financial investment?
∙ How will you benefit from the financial investment?
∙ How will you benefit from the financial investment?
∙ How do you plan on paying the money back?
∙ How do you plan on paying the money back?
∙ How do you plan on paying the money back?
These are the questions banks, private investors, and the government agencies will commonly ask These are the questions banks, private investors, and the government agencies will commonly ask
These are the questions banks, private investors, and the government agencies will commonly ask before they give you the money. Ensure the business plan you present to your investors contains the
before they give you the money. Ensure the business plan you present to your investors contains the
before they give you the money. Ensure the business plan you present to your investors contains the answers to those key questions.
answers to those key questions.
answers to those key questions.
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9. PLANNING FOR YOUR BUSINESS 9. PLANNING FOR YOUR BUSINESS 9. PLANNING FOR YOUR BUSINESS Planning is one of the most important parts of running a business. No matter whether you have a small
Planning is one of the most important parts of running a business. No matter whether you have a small
Planning is one of the most important parts of running a business. No matter whether you have a small business starting up and launching something new, or if you are a large company planning a corporate
business starting up and launching something new, or if you are a large company planning a corporate
business starting up and launching something new, or if you are a large company planning a corporate takeover – planning is always the key to success.
takeover – planning is always the key to success.
takeover – planning is always the key to success.
It’s very easy to start something, but if you lack careful planning, it’s like travelling to an unknown It’s very easy to start something, but if you lack careful planning, it’s like travelling to an unknown
It’s very easy to start something, but if you lack careful planning, it’s like travelling to an unknown destination without a map or a GPS system. Some will get lucky and make it to their destination, but
destination without a map or a GPS system. Some will get lucky and make it to their destination, but
destination without a map or a GPS system. Some will get lucky and make it to their destination, but most will get lost, leading to failure.
most will get lost, leading to failure.
most will get lost, leading to failure.
As a small business owner starting up, it’s very easy to get distracted with the various tasks you need to As a small business owner starting up, it’s very easy to get distracted with the various tasks you need to
As a small business owner starting up, it’s very easy to get distracted with the various tasks you need to complete to launch your business- something like writing a business plan may slip your mind, or may
complete to launch your business- something like writing a business plan may slip your mind, or may
complete to launch your business- something like writing a business plan may slip your mind, or may not seem important. Especially if you are doing this on your own, business planning is time consuming.
not seem important. Especially if you are doing this on your own, business planning is time consuming.
not seem important. Especially if you are doing this on your own, business planning is time consuming. Most start-up entrepreneurs are running on minimal budgets forcing them to take the time they do
Most start-up entrepreneurs are running on minimal budgets forcing them to take the time they do
Most start-up entrepreneurs are running on minimal budgets forcing them to take the time they do have and focus on making money rather than writing a document.
have and focus on making money rather than writing a document.
have and focus on making money rather than writing a document.
However, a well written business plan
However, a well written business plan
However, a well written business plan
will eventually mean the difference
will eventually mean the difference
will eventually mean the difference
between success and failure for your
between success and failure for your
between success and failure for your
venture and will by far outweigh the
venture and will by far outweigh the
venture and will by far outweigh the
temporary loss of earnings when you
temporary loss of earnings when you
temporary loss of earnings when you
focus more time on it, getting it
focus more time on it, getting it
focus more time on it, getting it
completed.
completed.
completed.
How? Well, a great business plan is a
How? Well, a great business plan is a
How? Well, a great business plan is a
tool which when completed will
tool which when completed will
tool which when completed will
provide you with a reference point for
provide you with a reference point for
provide you with a reference point for
each stage of your business. Simply
each stage of your business. Simply
each stage of your business. Simply
by looking at the business plan and
by looking at the business plan and
by looking at the business plan and
seeing how far you’ve come, and
seeing how far you’ve come, and
seeing how far you’ve come, and
what you’ve accomplished will push you further forward. A well-developed business plan will keep you what you’ve accomplished will push you further forward. A well-developed business plan will keep you
what you’ve accomplished will push you further forward. A well-developed business plan will keep you on track, keep you committed to your vision, and maintain your focus.
on track, keep you committed to your vision, and maintain your focus.
on track, keep you committed to your vision, and maintain your focus.
For entrepreneurs, sometimes it may be difficult to maintain focus- maybe you are working on one task For entrepreneurs, sometimes it may be difficult to maintain focus- maybe you are working on one task
For entrepreneurs, sometimes it may be difficult to maintain focus- maybe you are working on one task and one million other ideas are popping up in your head. While this is great, it can also be a curse with
and one million other ideas are popping up in your head. While this is great, it can also be a curse with
and one million other ideas are popping up in your head. While this is great, it can also be a curse with respect to the way you do business. Thus, a well formulated business plan at the starting stages of your
respect to the way you do business. Thus, a well formulated business plan at the starting stages of your
respect to the way you do business. Thus, a well formulated business plan at the starting stages of your business research will keep you on point.
business research will keep you on point.
business research will keep you on point.
The importance of having a business plan cannot be overstated. Taking your ideas and concepts and The importance of having a business plan cannot be overstated. Taking your ideas and concepts and
The importance of having a business plan cannot be overstated. Taking your ideas and concepts and placing them on paper-seeing that idea function as a business on paper-will prove to be very useful in
placing them on paper-seeing that idea function as a business on paper-will prove to be very useful in
placing them on paper-seeing that idea function as a business on paper-will prove to be very useful in the startup stages as well as in the future.
the startup stages as well as in the future.
the startup stages as well as in the future.
To make you more familiar with the whole business planning process, we have compiled the most To make you more familiar with the whole business planning process, we have compiled the most
To make you more familiar with the whole business planning process, we have compiled the most frequently asked questions about business plans and business planning. Researching and studying the
frequently asked questions about business plans and business planning. Researching and studying the
frequently asked questions about business plans and business planning. Researching and studying the answers will better prepare you for drafting your actual business plan.
answers will better prepare you for drafting your actual business plan.
answers will better prepare you for drafting your actual business plan.
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What is a business plan?
What is a business plan?
What is a business plan?
If you have ever written down your business idea on a piece of paper, cocktail napkin, or sent an email If you have ever written down your business idea on a piece of paper, cocktail napkin, or sent an email
If you have ever written down your business idea on a piece of paper, cocktail napkin, or sent an email about the idea to yourself for reference – you’ve basically started the process of business plan writing.
about the idea to yourself for reference – you’ve basically started the process of business plan writing.
about the idea to yourself for reference – you’ve basically started the process of business plan writing. At its core, a business plan is really just a simple summary that shows your idea, how you see the idea
At its core, a business plan is really just a simple summary that shows your idea, how you see the idea
At its core, a business plan is really just a simple summary that shows your idea, how you see the idea working, and what you are going to do to make it work. Some business plans are quite basic while
working, and what you are going to do to make it work. Some business plans are quite basic while
working, and what you are going to do to make it work. Some business plans are quite basic while others can be complex documents it may take a rocket scientist to decipher.
others can be complex documents it may take a rocket scientist to decipher.
others can be complex documents it may take a rocket scientist to decipher.
A business plan can be a one page document showing your idea, your goal, and the strategy to obtain A business plan can be a one page document showing your idea, your goal, and the strategy to obtain
A business plan can be a one page document showing your idea, your goal, and the strategy to obtain your goal. However, most entrepreneurs prefer to make the business plan document much longer and
your goal. However, most entrepreneurs prefer to make the business plan document much longer and
your goal. However, most entrepreneurs prefer to make the business plan document much longer and more in-depth in order to have a much clearer path towards success.
more in-depth in order to have a much clearer path towards success.
more in-depth in order to have a much clearer path towards success.
Unfortunately, most business owners think that having a business plan is only for starting a small Unfortunately, most business owners think that having a business plan is only for starting a small
Unfortunately, most business owners think that having a business plan is only for starting a small business, or applying for funding. Yet, business plans are also vital for running your business, whether
business, or applying for funding. Yet, business plans are also vital for running your business, whether
business, or applying for funding. Yet, business plans are also vital for running your business, whether there is a need for funding or not. Business plans should be treated as a schedule of what you need to
there is a need for funding or not. Business plans should be treated as a schedule of what you need to
there is a need for funding or not. Business plans should be treated as a schedule of what you need to do to keep your business moving forward. They should also be updated to reflect the growth of your
do to keep your business moving forward. They should also be updated to reflect the growth of your
do to keep your business moving forward. They should also be updated to reflect the growth of your business and any industry or market specific conditions.
business and any industry or market specific conditions.
business and any industry or market specific conditions.
Every business has long and short term goals, sales targets, expense budgets, competitors, strengths, Every business has long and short term goals, sales targets, expense budgets, competitors, strengths,
Every business has long and short term goals, sales targets, expense budgets, competitors, strengths, and weaknesses. A good business plan captures all of these things into one document to help you
and weaknesses. A good business plan captures all of these things into one document to help you
and weaknesses. A good business plan captures all of these things into one document to help you better understand and achieve your goals.
better understand and achieve your goals.
better understand and achieve your goals.
Why do you need a business plan?
Why do you need a business plan?
Why do you need a business plan?
If you are starting a lemonade stand, you can forgo the idea of a business plan. However, if you are If you are starting a lemonade stand, you can forgo the idea of a business plan. However, if you are
If you are starting a lemonade stand, you can forgo the idea of a business plan. However, if you are venturing into something more elaborate which will require an investment of time or finances– a
venturing into something more elaborate which will require an investment of time or finances– a
venturing into something more elaborate which will require an investment of time or finances– a business plan is highly recommended.
business plan is highly recommended.
business plan is highly recommended.
If you are serious about starting a business, a business plan is a crucial step and integral to your success. If you are serious about starting a business, a business plan is a crucial step and integral to your success. If you are serious about starting a business, a business plan is a crucial step and integral to your success. Small business startups benefit the most from having a well formulated, professionally written business
Small business startups benefit the most from having a well formulated, professionally written business
Small business startups benefit the most from having a well formulated, professionally written business plan. It shows the vision you have, functioning inside of a document. This at times is the perfect way to
plan. It shows the vision you have, functioning inside of a document. This at times is the perfect way to
plan. It shows the vision you have, functioning inside of a document. This at times is the perfect way to “launch” without launching. If you can make your business work on paper, it will more likely be
“launch” without launching. If you can make your business work on paper, it will more likely be
“launch” without launching. If you can make your business work on paper, it will more likely be successful when you launch to the live market.
successful when you launch to the live market.
successful when you launch to the live market.
As a start-up entrepreneur, the need for a business plan becomes very obvious in the early stages of As a start-up entrepreneur, the need for a business plan becomes very obvious in the early stages of
As a start-up entrepreneur, the need for a business plan becomes very obvious in the early stages of business. You will realize this when you don’t know the answer to simple questions such as; How much
business. You will realize this when you don’t know the answer to simple questions such as; How much
business. You will realize this when you don’t know the answer to simple questions such as; How much money do I need? When do I need the money? Who is my target audience? What do I need to do first?
money do I need? When do I need the money? Who is my target audience? What do I need to do first? money do I need? When do I need the money? Who is my target audience? What do I need to do first? At the same time, business plans are not just for startups. Existing business owners should also have a At the same time, business plans are not just for startups. Existing business owners should also have a
At the same time, business plans are not just for startups. Existing business owners should also have a business plan in place to help guide the business in the right direction. Business plans for existing
business plan in place to help guide the business in the right direction. Business plans for existing
business plan in place to help guide the business in the right direction. Business plans for existing businesses reinforce their strategy to achieve their goals, track their results, and manage cash flow. It’s
businesses reinforce their strategy to achieve their goals, track their results, and manage cash flow. It’s
businesses reinforce their strategy to achieve their goals, track their results, and manage cash flow. It’s a fact that clearly defined business plans help all businesses grow 30% faster than those that don’t
a fact that clearly defined business plans help all businesses grow 30% faster than those that don’t
a fact that clearly defined business plans help all businesses grow 30% faster than those that don’t follow a preset guideline.
follow a preset guideline.
follow a preset guideline.
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In simpler terms, why do you need a business plan?
In simpler terms, why do you need a business plan?
In simpler terms, why do you need a business plan?
Having a business plan will ensure that your business always has a checklist to follow, from point A, to Having a business plan will ensure that your business always has a checklist to follow, from point A, to
Having a business plan will ensure that your business always has a checklist to follow, from point A, to point B, and to the finish line where your end goals will be achieved.
point B, and to the finish line where your end goals will be achieved.
point B, and to the finish line where your end goals will be achieved.
Why should you write a business plan?
Why should you write a business plan?
Why should you write a business plan?
When it comes to the writing of the business plan portion, it can be a pain to actually get the time, sit When it comes to the writing of the business plan portion, it can be a pain to actually get the time, sit
When it comes to the writing of the business plan portion, it can be a pain to actually get the time, sit down and write. However, if you plan on having your business succeed and grow – you should.
down and write. However, if you plan on having your business succeed and grow – you should. down and write. However, if you plan on having your business succeed and grow – you should. You should take the time to write your business plan, at least in bullet points. Here are some basic You should take the time to write your business plan, at least in bullet points. Here are some basic
You should take the time to write your business plan, at least in bullet points. Here are some basic requirements of a typical business plan. Start by jotting down the following:
requirements of a typical business plan. Start by jotting down the following:
requirements of a typical business plan. Start by jotting down the following:
∙ Your idea
∙ Your idea
∙ Your idea
∙ Your goals
∙ Your goals
∙ Your goals
∙ Your strategy
∙ Your strategy
∙ Your strategy
∙ Your financials
∙ Your financials
∙ Your financials
∙ Your audience
∙ Your audience
∙ Your audience
∙ Your product/service
∙ Your product/service
∙ Your product/service
∙ Your marketing
∙ Your marketing
∙ Your marketing
∙ Your competition
∙ Your competition
∙ Your competition
By doing so, you will have a clear idea of where your business is, where it’s going, and how to get there. By doing so, you will have a clear idea of where your business is, where it’s going, and how to get there. By doing so, you will have a clear idea of where your business is, where it’s going, and how to get there. If you aren’t creating a business plan to show to potential investors, banks, or the government – you’re
If you aren’t creating a business plan to show to potential investors, banks, or the government – you’re
If you aren’t creating a business plan to show to potential investors, banks, or the government – you’re simply using it as an internal document for yourself to follow- it doesn’t need to be pretty, detailed or
simply using it as an internal document for yourself to follow- it doesn’t need to be pretty, detailed or
simply using it as an internal document for yourself to follow- it doesn’t need to be pretty, detailed or contain charts and graphs. It can be simple bullet points or a checklist of tasks which you can use to
contain charts and graphs. It can be simple bullet points or a checklist of tasks which you can use to
contain charts and graphs. It can be simple bullet points or a checklist of tasks which you can use to follow.
follow.
follow.
If you are thinking of hiring an advisor or a business plan specialist to compose the document for you – If you are thinking of hiring an advisor or a business plan specialist to compose the document for you –
If you are thinking of hiring an advisor or a business plan specialist to compose the document for you – great! However, it is still recommend that you create the bullet point version of everything that is
great! However, it is still recommend that you create the bullet point version of everything that is
great! However, it is still recommend that you create the bullet point version of everything that is needed in a business plan and provide it to your writer. No one has better insight into the vision for your
needed in a business plan and provide it to your writer. No one has better insight into the vision for your
needed in a business plan and provide it to your writer. No one has better insight into the vision for your business than you. Be sure to use yourself as much as you can to get your vision down on paper before
business than you. Be sure to use yourself as much as you can to get your vision down on paper before
business than you. Be sure to use yourself as much as you can to get your vision down on paper before you share it.
you share it.
you share it.
Who should write your business plan?
Who should write your business plan?
Who should write your business plan?
As mentioned previously, it is often recommended that you are the first person to write your business As mentioned previously, it is often recommended that you are the first person to write your business
As mentioned previously, it is often recommended that you are the first person to write your business plan. If you have partners, ensure that you as the business owner, join together with your business
plan. If you have partners, ensure that you as the business owner, join together with your business
plan. If you have partners, ensure that you as the business owner, join together with your business partners and put your heads together to develop the best business plan with all of your ideas and
partners and put your heads together to develop the best business plan with all of your ideas and
partners and put your heads together to develop the best business plan with all of your ideas and visions together.
visions together.
visions together.
That being said, if you don’t have the skills, or the time to write a business plan, you can always hire That being said, if you don’t have the skills, or the time to write a business plan, you can always hire
That being said, if you don’t have the skills, or the time to write a business plan, you can always hire help. There are hundreds of business consultants who can help you put together a perfect business plan.
help. There are hundreds of business consultants who can help you put together a perfect business plan. help. There are hundreds of business consultants who can help you put together a perfect business plan.
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You can find a business advisor, an accountant, or a business plan writer to get the help and guidance You can find a business advisor, an accountant, or a business plan writer to get the help and guidance
You can find a business advisor, an accountant, or a business plan writer to get the help and guidance you need.
you need.
you need.
Keep in mind, you will have to explain everything to them- your vision, your goals, strategies, and Keep in mind, you will have to explain everything to them- your vision, your goals, strategies, and
Keep in mind, you will have to explain everything to them- your vision, your goals, strategies, and financials. They will do the required leg work for you, conduct all research, and provide you with a
financials. They will do the required leg work for you, conduct all research, and provide you with a
financials. They will do the required leg work for you, conduct all research, and provide you with a professional and usable business plan.
professional and usable business plan.
professional and usable business plan.
Remember that if you are planning to use your business to attract potential investors, or to obtain Remember that if you are planning to use your business to attract potential investors, or to obtain
Remember that if you are planning to use your business to attract potential investors, or to obtain financing from the banks, or the government – a professional business plan is a must. If you don’t have
financing from the banks, or the government – a professional business plan is a must. If you don’t have
financing from the banks, or the government – a professional business plan is a must. If you don’t have the skills of writing a business plan, sometimes it is better left to experts.
the skills of writing a business plan, sometimes it is better left to experts.
the skills of writing a business plan, sometimes it is better left to experts.
One recommendation is to not just write anything for the sake of writing it, if you plan on sending it to One recommendation is to not just write anything for the sake of writing it, if you plan on sending it to
One recommendation is to not just write anything for the sake of writing it, if you plan on sending it to banks or when applying to funding programs. A poorly written plan can ruin your reputation with
banks or when applying to funding programs. A poorly written plan can ruin your reputation with
banks or when applying to funding programs. A poorly written plan can ruin your reputation with potential lenders.
potential lenders.
potential lenders.
If an advisor isn’t in your budget, and your skills aren’t the greatest, there are many free resources If an advisor isn’t in your budget, and your skills aren’t the greatest, there are many free resources
If an advisor isn’t in your budget, and your skills aren’t the greatest, there are many free resources which can help you formulate a business plan such as; free business advisors, local business offices, or
which can help you formulate a business plan such as; free business advisors, local business offices, or
which can help you formulate a business plan such as; free business advisors, local business offices, or you can even use well known business planning software and refer to online templates and sample
you can even use well known business planning software and refer to online templates and sample
you can even use well known business planning software and refer to online templates and sample plans for extra help.
plans for extra help.
plans for extra help.
What are some common guidelines when writing a good business What are some common guidelines when writing a good business
What are some common guidelines when writing a good business plan?
plan?
plan?
When writing a business plan you don’t have to reinvent the wheel. Instead, do your research into what When writing a business plan you don’t have to reinvent the wheel. Instead, do your research into what
When writing a business plan you don’t have to reinvent the wheel. Instead, do your research into what makes a good business plan for your industry and follow it. The perfect business plan contains specific
makes a good business plan for your industry and follow it. The perfect business plan contains specific
makes a good business plan for your industry and follow it. The perfect business plan contains specific sections every investor looks for. Millions of people around the world write business plans – be sure to
sections every investor looks for. Millions of people around the world write business plans – be sure to
sections every investor looks for. Millions of people around the world write business plans – be sure to learn from their mistakes and not make the same ones.
learn from their mistakes and not make the same ones.
learn from their mistakes and not make the same ones.
Some businesses have made it, some have failed – but what they have all left behind are guidelines you Some businesses have made it, some have failed – but what they have all left behind are guidelines you
Some businesses have made it, some have failed – but what they have all left behind are guidelines you should follow to ensure you either find their path to success, or avoid their path to failure. Some of
should follow to ensure you either find their path to success, or avoid their path to failure. Some of
should follow to ensure you either find their path to success, or avoid their path to failure. Some of these recommendations include:
these recommendations include:
these recommendations include:
✔ A business plan can never be perfect. Don’t waste your time “perfecting every point”. ✔ A business plan can never be perfect. Don’t waste your time “perfecting every point”.
✔ A business plan can never be perfect. Don’t waste your time “perfecting every point”. ✔ Ensure all essential parts of a business plan are included.
✔ Ensure all essential parts of a business plan are included.
✔ Ensure all essential parts of a business plan are included.
✔ Don’t just research, but research and understand it
✔ Don’t just research, but research and understand it
✔ Don’t just research, but research and understand it
✔ Learn from your competitors, your peers, and use business mentors
✔ Learn from your competitors, your peers, and use business mentors
✔ Learn from your competitors, your peers, and use business mentors
✔ Maintain focus on your business idea
✔ Maintain focus on your business idea
✔ Maintain focus on your business idea
✔ Know your industry and stick to it
✔ Know your industry and stick to it
✔ Know your industry and stick to it
✔ Know your competition better than they know themselves. Become a customer ✔ Know your competition better than they know themselves. Become a customer
✔ Know your competition better than they know themselves. Become a customer ✔ Be very specific in your action plan. How exactly do you plan on achieving your goal
✔ Be very specific in your action plan. How exactly do you plan on achieving your goal
✔ Be very specific in your action plan. How exactly do you plan on achieving your goal ✔ Build the process in your mind, in your employees minds, and nail it to the door if you must
✔ Build the process in your mind, in your employees minds, and nail it to the door if you must
✔ Build the process in your mind, in your employees minds, and nail it to the door if you must ✔ Constantly update the plan as your business evolves
✔ Constantly update the plan as your business evolves
✔ Constantly update the plan as your business evolves
✔ Clean up your plan when presenting it. Personalize it for banks, government agencies etc. ✔ Clean up your plan when presenting it. Personalize it for banks, government agencies etc.
✔ Clean up your plan when presenting it. Personalize it for banks, government agencies etc. ✔ Ensure your business plan reflects who you are in terms of design and style
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✔ Be sure to list out all of your assumptions. Trust your gut and follow it
✔ Be sure to list out all of your assumptions. Trust your gut and follow it
✔ Be sure to list out all of your assumptions. Trust your gut and follow it
✔ Be realistic and smart on your projections
✔ Be realistic and smart on your projections
✔ Be realistic and smart on your projections
When asking some experts who have highly successful businesses as to what advice they can give start- When asking some experts who have highly successful businesses as to what advice they can give start-
When asking some experts who have highly successful businesses as to what advice they can give start- up entrepreneurs in terms of what makes a good business plan, they stated the following;
up entrepreneurs in terms of what makes a good business plan, they stated the following; up entrepreneurs in terms of what makes a good business plan, they stated the following; ∙ Look at what other businesses are doing wrong and do the opposite.
∙ Look at what other businesses are doing wrong and do the opposite.
∙ Look at what other businesses are doing wrong and do the opposite.
∙ Sometimes the best schooling in developing your business plan can be purchased at a book store ∙ Sometimes the best schooling in developing your business plan can be purchased at a book store
∙ Sometimes the best schooling in developing your business plan can be purchased at a book store ∙ Support your business plan with industry stats
∙ Support your business plan with industry stats
∙ Support your business plan with industry stats
∙ Make your business plan clear, concise, and to the point. Don’t venture over 20 pages long ∙ Make your business plan clear, concise, and to the point. Don’t venture over 20 pages long
∙ Make your business plan clear, concise, and to the point. Don’t venture over 20 pages long ∙ Don’t try to do it alone. Find others who’ve created their own plans and learn from them
∙ Don’t try to do it alone. Find others who’ve created their own plans and learn from them
∙ Don’t try to do it alone. Find others who’ve created their own plans and learn from them ∙ Does your business plan tell a story? Captivate your investors by sharing an engaging story about
∙ Does your business plan tell a story? Captivate your investors by sharing an engaging story about
∙ Does your business plan tell a story? Captivate your investors by sharing an engaging story about your beginnings
your beginnings
your beginnings
∙ Don’t make your investors look for more information. Be sure you add all the details in your ∙ Don’t make your investors look for more information. Be sure you add all the details in your
∙ Don’t make your investors look for more information. Be sure you add all the details in your business plan
business plan
business plan
∙ Always ask others to review your business plan, preferably those with experience ∙ Always ask others to review your business plan, preferably those with experience
∙ Always ask others to review your business plan, preferably those with experience ∙ Along with professional advice, ask your friends and family to look over your business plan and
∙ Along with professional advice, ask your friends and family to look over your business plan and
∙ Along with professional advice, ask your friends and family to look over your business plan and offer their advice
offer their advice
offer their advice
∙ Spell it out for your investors: explain exactly how they will make money from investing with you ∙ Spell it out for your investors: explain exactly how they will make money from investing with you
∙ Spell it out for your investors: explain exactly how they will make money from investing with you ∙ Be sure to focus on the key demographics
∙ Be sure to focus on the key demographics
∙ Be sure to focus on the key demographics
∙ Focus in on your executive summary and get to the hook early on
∙ Focus in on your executive summary and get to the hook early on
∙ Focus in on your executive summary and get to the hook early on
∙ Don’t forget that there is a human being on the other end
∙ Don’t forget that there is a human being on the other end
∙ Don’t forget that there is a human being on the other end
∙ Include real data in your business plan, not just projections
∙ Include real data in your business plan, not just projections
∙ Include real data in your business plan, not just projections
Entrepreneurs who have succeeded can give advice regarding the quality of your plan. Others may Entrepreneurs who have succeeded can give advice regarding the quality of your plan. Others may
Entrepreneurs who have succeeded can give advice regarding the quality of your plan. Others may suggest the stats to include and various other components. Follow our guideline and accept this advice
suggest the stats to include and various other components. Follow our guideline and accept this advice
suggest the stats to include and various other components. Follow our guideline and accept this advice from successful entrepreneurs to build the perfect business plan for your business.
from successful entrepreneurs to build the perfect business plan for your business. from successful entrepreneurs to build the perfect business plan for your business.
Where can you find the market research, industry and competitor Where can you find the market research, industry and competitor
Where can you find the market research, industry and competitor information for your plan?
information for your plan?
information for your plan?
One of the major parts of your business plan includes the market research component. In the market One of the major parts of your business plan includes the market research component. In the market
One of the major parts of your business plan includes the market research component. In the market research you want to figure out everything you need to know about your business, the industry, the
research you want to figure out everything you need to know about your business, the industry, the
research you want to figure out everything you need to know about your business, the industry, the audience and anything else you may find helpful to starting up and running your business.
audience and anything else you may find helpful to starting up and running your business. audience and anything else you may find helpful to starting up and running your business. The more information you have, the more knowledge you have – the more likely you are to avoid the The more information you have, the more knowledge you have – the more likely you are to avoid the
The more information you have, the more knowledge you have – the more likely you are to avoid the common pitfalls and succeed.
common pitfalls and succeed.
common pitfalls and succeed.
Before you begin with market research, it is very important to know what market research really is. Before you begin with market research, it is very important to know what market research really is. Before you begin with market research, it is very important to know what market research really is. Most successful small businesses have excellent knowledge of not only their customers, but their
Most successful small businesses have excellent knowledge of not only their customers, but their
Most successful small businesses have excellent knowledge of not only their customers, but their competition as well. Market research is simply the process of collecting information which will ensure
competition as well. Market research is simply the process of collecting information which will ensure
competition as well. Market research is simply the process of collecting information which will ensure that you are more aware of how your potential customers will react to your business products and/or
that you are more aware of how your potential customers will react to your business products and/or that you are more aware of how your potential customers will react to your business products and/or
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services.
services.
services.
Whether you know it or not, as a small business owner you are conducting market research, most of the Whether you know it or not, as a small business owner you are conducting market research, most of the
Whether you know it or not, as a small business owner you are conducting market research, most of the time without even realizing. When you are talking about your business, or your products and services
time without even realizing. When you are talking about your business, or your products and services
time without even realizing. When you are talking about your business, or your products and services with potential customers, or when you check similar prices in the market, you are conducting research.
with potential customers, or when you check similar prices in the market, you are conducting research.
with potential customers, or when you check similar prices in the market, you are conducting research. Now, all you have to do is formalize the process.
Now, all you have to do is formalize the process.
Now, all you have to do is formalize the process.
The level of research you do is really up to you and on your business. You can research the basics: The level of research you do is really up to you and on your business. You can research the basics: The level of research you do is really up to you and on your business. You can research the basics: ∙ Attitudes: how a person thinks or feels about something
∙ Attitudes: how a person thinks or feels about something
∙ Attitudes: how a person thinks or feels about something
∙ Behaviors: what actions does a person take or plan on taking
∙ Behaviors: what actions does a person take or plan on taking
∙ Behaviors: what actions does a person take or plan on taking
∙ Demographics: personal specifics such as age, income, gender etc.
∙ Demographics: personal specifics such as age, income, gender etc.
∙ Demographics: personal specifics such as age, income, gender etc.
∙ Firmographics: the characteristics of organization
∙ Firmographics: the characteristics of organization
∙ Firmographics: the characteristics of organization
You can go a much more intensive route and work with a market research company to get the most You can go a much more intensive route and work with a market research company to get the most
You can go a much more intensive route and work with a market research company to get the most knowledge out of every aspect out of the industry, market, and your business.
knowledge out of every aspect out of the industry, market, and your business.
knowledge out of every aspect out of the industry, market, and your business.
When you are clear on the data that you need to research for your business plan and to ensure your When you are clear on the data that you need to research for your business plan and to ensure your
When you are clear on the data that you need to research for your business plan and to ensure your small business can be successful, your options are unlimited as to where you can go and collect the
small business can be successful, your options are unlimited as to where you can go and collect the
small business can be successful, your options are unlimited as to where you can go and collect the information you need – consider the following:
information you need – consider the following:
information you need – consider the following:
∙ Labor and employment data
∙ Labor and employment data
∙ Labor and employment data
∙ Canadian economy stats
∙ Canadian economy stats
∙ Canadian economy stats
∙ Industry sector data
∙ Industry sector data
∙ Industry sector data
∙ Public libraries / school libraries
∙ Public libraries / school libraries
∙ Public libraries / school libraries
∙ Online websites and directories
∙ Online websites and directories
∙ Online websites and directories
∙ Networking and social media
∙ Networking and social media
∙ Networking and social media
∙ Looking at your competitors
∙ Looking at your competitors
∙ Looking at your competitors
∙ Reading newspapers, magazines, and business news
∙ Reading newspapers, magazines, and business news
∙ Reading newspapers, magazines, and business news
∙ Checking for previously done market research
∙ Checking for previously done market research
∙ Checking for previously done market research
∙ Conducting surveys and questionnaires
∙ Conducting surveys and questionnaires
∙ Conducting surveys and questionnaires
The ways to conduct research is pretty much endless. All it requires is your time, and possibly a The ways to conduct research is pretty much endless. All it requires is your time, and possibly a
The ways to conduct research is pretty much endless. All it requires is your time, and possibly a checklist of everything that you need to research about. Be sure to remember the main points:
checklist of everything that you need to research about. Be sure to remember the main points: checklist of everything that you need to research about. Be sure to remember the main points:
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∙ Product: Research what you are selling
∙ Product: Research what you are selling
∙ Product: Research what you are selling
∙ Price: Research the market prices, costs, and how you plan on competing ∙ Price: Research the market prices, costs, and how you plan on competing
∙ Price: Research the market prices, costs, and how you plan on competing ∙ Place: Where do you plan on selling? How competitive is that market? What will your plan be?
∙ Place: Where do you plan on selling? How competitive is that market? What will your plan be?
∙ Place: Where do you plan on selling? How competitive is that market? What will your plan be? ∙ Promotion: How do you plan on promoting?
∙ Promotion: How do you plan on promoting?
∙ Promotion: How do you plan on promoting?
Remember: One of the simplest ways to research a new business start-up is to spend time looking at Remember: One of the simplest ways to research a new business start-up is to spend time looking at
Remember: One of the simplest ways to research a new business start-up is to spend time looking at others doing the same, or similar ideas in the market. How are they doing what they are doing? Are
others doing the same, or similar ideas in the market. How are they doing what they are doing? Are
others doing the same, or similar ideas in the market. How are they doing what they are doing? Are they successful? What about their approach do you like and dislike? What issues have they
they successful? What about their approach do you like and dislike? What issues have they
they successful? What about their approach do you like and dislike? What issues have they encountered? Is there something unique they are doing that may be working? Who would you buy from,
encountered? Is there something unique they are doing that may be working? Who would you buy from,
encountered? Is there something unique they are doing that may be working? Who would you buy from, and why?
and why?
and why?
How do you prepare the financials in your business plan? How do you prepare the financials in your business plan? How do you prepare the financials in your business plan?
The financial portion of your business plan may be the most difficult component of the business plan. The financial portion of your business plan may be the most difficult component of the business plan.
The financial portion of your business plan may be the most difficult component of the business plan. This section is where you either see success for your business, or are headed for failure. It is
This section is where you either see success for your business, or are headed for failure. It is
This section is where you either see success for your business, or are headed for failure. It is recommended that if you aren’t financially knowledgeable, you should contact an accountant or obtain
recommended that if you aren’t financially knowledgeable, you should contact an accountant or obtain
recommended that if you aren’t financially knowledgeable, you should contact an accountant or obtain professional assistance in developing your business plan’s financial statements.
professional assistance in developing your business plan’s financial statements.
professional assistance in developing your business plan’s financial statements.
If your plan is to develop your business plan in hopes of attracting potential investors, to take it to the If your plan is to develop your business plan in hopes of attracting potential investors, to take it to the
If your plan is to develop your business plan in hopes of attracting potential investors, to take it to the banks or the government for funding assistance, you need to make sure that your financials are clear
banks or the government for funding assistance, you need to make sure that your financials are clear
banks or the government for funding assistance, you need to make sure that your financials are clear and correct.
and correct.
and correct.
The main components of a business plans financial plan should include the income statement, balance The main components of a business plans financial plan should include the income statement, balance
The main components of a business plans financial plan should include the income statement, balance sheet, and the cash flow statement. Other financial information may be required, especially
sheet, and the cash flow statement. Other financial information may be required, especially
sheet, and the cash flow statement. Other financial information may be required, especially dependent on where you are taking your plan for funding.
dependent on where you are taking your plan for funding.
dependent on where you are taking your plan for funding.
Income statements, also known as P&L’s, or Profit and Loss Statements are the most important to the Income statements, also known as P&L’s, or Profit and Loss Statements are the most important to the
Income statements, also known as P&L’s, or Profit and Loss Statements are the most important to the success of your business. They showcase the money coming in and how much you are keeping as profit.
success of your business. They showcase the money coming in and how much you are keeping as profit.
success of your business. They showcase the money coming in and how much you are keeping as profit. The calculation is simple; take your business’ income and subtract any expenses you have – what’s left
The calculation is simple; take your business’ income and subtract any expenses you have – what’s left
The calculation is simple; take your business’ income and subtract any expenses you have – what’s left over is your profit.
over is your profit.
over is your profit.
If you are just starting out in business and don’t have any numbers to go off of, find research statistics If you are just starting out in business and don’t have any numbers to go off of, find research statistics
If you are just starting out in business and don’t have any numbers to go off of, find research statistics on other businesses within the same industry. The most important question to ask is, “What is the trend
on other businesses within the same industry. The most important question to ask is, “What is the trend
on other businesses within the same industry. The most important question to ask is, “What is the trend in the industry?” If for example, you find research that states that the average restaurant in your city
in the industry?” If for example, you find research that states that the average restaurant in your city
in the industry?” If for example, you find research that states that the average restaurant in your city (your market) has a 15% – 20% annual sales gain, that’s the perfect starting point to forecast your
(your market) has a 15% – 20% annual sales gain, that’s the perfect starting point to forecast your
(your market) has a 15% – 20% annual sales gain, that’s the perfect starting point to forecast your company’s projections. Keep in mind that when it comes to investors, banks, and funding agencies, you
company’s projections. Keep in mind that when it comes to investors, banks, and funding agencies, you
company’s projections. Keep in mind that when it comes to investors, banks, and funding agencies, you may need to provide them with the research you’ve conducted which shows your findings and those
may need to provide them with the research you’ve conducted which shows your findings and those
may need to provide them with the research you’ve conducted which shows your findings and those numbers.
numbers.
numbers.
Your projections shouldn’t be out of this world. It is important to be very realistic. If you notice in your Your projections shouldn’t be out of this world. It is important to be very realistic. If you notice in your
Your projections shouldn’t be out of this world. It is important to be very realistic. If you notice in your research that most businesses in your industry have only 3% growth per year, it is not recommended to
research that most businesses in your industry have only 3% growth per year, it is not recommended to
research that most businesses in your industry have only 3% growth per year, it is not recommended to say 10% for your projections – as this is not realistic and most of the time not attainable.
say 10% for your projections – as this is not realistic and most of the time not attainable. say 10% for your projections – as this is not realistic and most of the time not attainable.
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The balance sheet simply shows how much you are worth. A balance sheet can be used to show the The balance sheet simply shows how much you are worth. A balance sheet can be used to show the
The balance sheet simply shows how much you are worth. A balance sheet can be used to show the value of your company to investors due to asset ownership. Or it can do the opposite – show your
value of your company to investors due to asset ownership. Or it can do the opposite – show your
value of your company to investors due to asset ownership. Or it can do the opposite – show your company has assets with large debt – but still remains highly profitable.
company has assets with large debt – but still remains highly profitable.
company has assets with large debt – but still remains highly profitable.
The calculation for your balance sheet is simple as well- take everything your business owns, subtract The calculation for your balance sheet is simple as well- take everything your business owns, subtract
The calculation for your balance sheet is simple as well- take everything your business owns, subtract what you owe, and the difference is your net worth of the business.
what you owe, and the difference is your net worth of the business.
what you owe, and the difference is your net worth of the business.
Let’s use a quick example. You have started a cleaning business. One of your main assets is a brand new Let’s use a quick example. You have started a cleaning business. One of your main assets is a brand new
Let’s use a quick example. You have started a cleaning business. One of your main assets is a brand new van worth approximately $35,000. You purchased the vehicle and still owe $15,000 on credit. Aside
van worth approximately $35,000. You purchased the vehicle and still owe $15,000 on credit. Aside
van worth approximately $35,000. You purchased the vehicle and still owe $15,000 on credit. Aside from the van, you don’t own anything else as of yet – plus you have no other business debt.
from the van, you don’t own anything else as of yet – plus you have no other business debt. from the van, you don’t own anything else as of yet – plus you have no other business debt. Your business’ net worth is calculated as follows: $35,000 (value of the van) minus $15,000 (left to pay Your business’ net worth is calculated as follows: $35,000 (value of the van) minus $15,000 (left to pay
Your business’ net worth is calculated as follows: $35,000 (value of the van) minus $15,000 (left to pay on the van) = $20,000 (your business net worth).
on the van) = $20,000 (your business net worth).
on the van) = $20,000 (your business net worth).
When starting your business, investors will look at what you own and owe in order to estimate the When starting your business, investors will look at what you own and owe in order to estimate the
When starting your business, investors will look at what you own and owe in order to estimate the equity of your business, how valuable you are to them, and to determine whether your business is
equity of your business, how valuable you are to them, and to determine whether your business is
equity of your business, how valuable you are to them, and to determine whether your business is worth an investment. Along with a balance sheet and your projections – the financial portion of the
worth an investment. Along with a balance sheet and your projections – the financial portion of the
worth an investment. Along with a balance sheet and your projections – the financial portion of the business plan is often the main reason new business owners are successful at obtaining funding.
business plan is often the main reason new business owners are successful at obtaining funding. business plan is often the main reason new business owners are successful at obtaining funding. The next portion is the cash flow statement. The cash flow statement simply shows where the money is The next portion is the cash flow statement. The cash flow statement simply shows where the money is
The next portion is the cash flow statement. The cash flow statement simply shows where the money is coming from, and where the money is going. What are you being paid for, and what are you paying for?
coming from, and where the money is going. What are you being paid for, and what are you paying for? coming from, and where the money is going. What are you being paid for, and what are you paying for? A cash flow statement is important to investors as they see the spending habits for your business, and A cash flow statement is important to investors as they see the spending habits for your business, and
A cash flow statement is important to investors as they see the spending habits for your business, and evaluate the overall position you are in to pay them back. If you are spending way too much on certain
evaluate the overall position you are in to pay them back. If you are spending way too much on certain
evaluate the overall position you are in to pay them back. If you are spending way too much on certain things, they may not see the potential for a return on their investment and decline you funding. On the
things, they may not see the potential for a return on their investment and decline you funding. On the
things, they may not see the potential for a return on their investment and decline you funding. On the other hand, having steady cash flow is appealing to investors even if you have a balance sheet showing
other hand, having steady cash flow is appealing to investors even if you have a balance sheet showing
other hand, having steady cash flow is appealing to investors even if you have a balance sheet showing you owe more than you own.
you owe more than you own.
you owe more than you own.
A cash flow statement is also an excellent tool for you as a small business owner to track and control A cash flow statement is also an excellent tool for you as a small business owner to track and control
A cash flow statement is also an excellent tool for you as a small business owner to track and control your spending. Keeping your books organized will help you check the cash flow statement regularly to
your spending. Keeping your books organized will help you check the cash flow statement regularly to
your spending. Keeping your books organized will help you check the cash flow statement regularly to see where you are spending too much and curb this behavior before all your money disappears. Most
see where you are spending too much and curb this behavior before all your money disappears. Most
see where you are spending too much and curb this behavior before all your money disappears. Most small businesses control their spending using the cash flow statements. Thus, it’s very important to
small businesses control their spending using the cash flow statements. Thus, it’s very important to
small businesses control their spending using the cash flow statements. Thus, it’s very important to keep it as accurate as possible.
keep it as accurate as possible.
keep it as accurate as possible.
When writing your business plan for investors, banks, and the government, it may not be enough to When writing your business plan for investors, banks, and the government, it may not be enough to
When writing your business plan for investors, banks, and the government, it may not be enough to show your income statement, balance sheet and cash flow statement. Some investors will want to see
show your income statement, balance sheet and cash flow statement. Some investors will want to see
show your income statement, balance sheet and cash flow statement. Some investors will want to see more than just your business financials, especially if you are just starting out. Personal financial
more than just your business financials, especially if you are just starting out. Personal financial
more than just your business financials, especially if you are just starting out. Personal financial statements may also be requested. If you are just starting out and a potential investor is thinking of
statements may also be requested. If you are just starting out and a potential investor is thinking of
statements may also be requested. If you are just starting out and a potential investor is thinking of lending you thousands of dollars, they may want to see your personal net worth-how much you own
lending you thousands of dollars, they may want to see your personal net worth-how much you own
lending you thousands of dollars, they may want to see your personal net worth-how much you own and how much you owe- to see whether you are a good financial investment for them.
and how much you owe- to see whether you are a good financial investment for them. and how much you owe- to see whether you are a good financial investment for them.
What are some common mistakes in writing a business plan? What are some common mistakes in writing a business plan? What are some common mistakes in writing a business plan?Many elements come together to make a perfect business plan. Writing the best plan takes a lot of time, Many elements come together to make a perfect business plan. Writing the best plan takes a lot of time,
Many elements come together to make a perfect business plan. Writing the best plan takes a lot of time, patience, and sometimes many revisions to get it right. Keep in mind that no business plan is ever
patience, and sometimes many revisions to get it right. Keep in mind that no business plan is ever patience, and sometimes many revisions to get it right. Keep in mind that no business plan is ever www.CanadaStartups.org 49
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perfect. Trying to make it perfect will keep you in the “development” stages longer. It is recommended perfect. Trying to make it perfect will keep you in the “development” stages longer. It is recommended
perfect. Trying to make it perfect will keep you in the “development” stages longer. It is recommended to update your plan as you move along in your business – not spend all of your time writing it in the
to update your plan as you move along in your business – not spend all of your time writing it in the
to update your plan as you move along in your business – not spend all of your time writing it in the startup stage.
startup stage.
startup stage.
Business plans often get neglected. As a small business owner you are focused on getting your business Business plans often get neglected. As a small business owner you are focused on getting your business
Business plans often get neglected. As a small business owner you are focused on getting your business launched, trying to obtain financing, and so many other things. But, forgetting to build your business
launched, trying to obtain financing, and so many other things. But, forgetting to build your business
launched, trying to obtain financing, and so many other things. But, forgetting to build your business plan is often the number one reason businesses end up failing. When it comes to writing a business plan,
plan is often the number one reason businesses end up failing. When it comes to writing a business plan,
plan is often the number one reason businesses end up failing. When it comes to writing a business plan, here are some common mistakes you need to avoid:
here are some common mistakes you need to avoid:
here are some common mistakes you need to avoid:
1. Creating unrealistic financial projections
1. Creating unrealistic financial projections
1. Creating unrealistic financial projections
Investors who are planning on providing you with funding for your small business expect to see Investors who are planning on providing you with funding for your small business expect to see
Investors who are planning on providing you with funding for your small business expect to see realistic and achievable goals. They want to see where your business is now, where it is going,
realistic and achievable goals. They want to see where your business is now, where it is going,
realistic and achievable goals. They want to see where your business is now, where it is going, and a plan on how to get there. Therefore be very realistic. Base your projections on research
and a plan on how to get there. Therefore be very realistic. Base your projections on research
and a plan on how to get there. Therefore be very realistic. Base your projections on research and using your findings, be prepared to show and explain how you obtained the projected
and using your findings, be prepared to show and explain how you obtained the projected
and using your findings, be prepared to show and explain how you obtained the projected figures.
figures.
figures.
2. Not focusing on your target audience
2. Not focusing on your target audience
2. Not focusing on your target audience
The businesses which fail are the ones who state that their target market is “everyone”. Not all The businesses which fail are the ones who state that their target market is “everyone”. Not all
The businesses which fail are the ones who state that their target market is “everyone”. Not all businesses appeal to everyone. You must spend time on research and understand who your
businesses appeal to everyone. You must spend time on research and understand who your
businesses appeal to everyone. You must spend time on research and understand who your specific target market is. Build your business plan according to this info and how you plan on
specific target market is. Build your business plan according to this info and how you plan on
specific target market is. Build your business plan according to this info and how you plan on targeting this specific market. Remember that there is always room for growth for other
targeting this specific market. Remember that there is always room for growth for other
targeting this specific market. Remember that there is always room for growth for other audiences, but your main goal is to focus on your primary target audience during the startup
audiences, but your main goal is to focus on your primary target audience during the startup
audiences, but your main goal is to focus on your primary target audience during the startup stage of your small business.
stage of your small business.
stage of your small business.
3. Don’t over hype your business
3. Don’t over hype your business
3. Don’t over hype your business
When taking your business plan to investors you need to wow the investor with your business When taking your business plan to investors you need to wow the investor with your business
When taking your business plan to investors you need to wow the investor with your business idea, the research you’ve done, and the financial plan you have in place. Don’t start off by
idea, the research you’ve done, and the financial plan you have in place. Don’t start off by
idea, the research you’ve done, and the financial plan you have in place. Don’t start off by hyping your business up to be the greatest thing ever invented, the most profitable billion
hyping your business up to be the greatest thing ever invented, the most profitable billion
hyping your business up to be the greatest thing ever invented, the most profitable billion dollar business, and then say, “It’s a lemonade stand!” Your investors need to be excited, but
dollar business, and then say, “It’s a lemonade stand!” Your investors need to be excited, but
dollar business, and then say, “It’s a lemonade stand!” Your investors need to be excited, but realistically wowed.
realistically wowed.
realistically wowed.
4. Conducting bad research
4. Conducting bad research
4. Conducting bad research
With so many places to conduct your research it’s easy to get massive amounts of information. With so many places to conduct your research it’s easy to get massive amounts of information.
With so many places to conduct your research it’s easy to get massive amounts of information. But how do you know whether the information is accurate or not? Do you really plan on starting
But how do you know whether the information is accurate or not? Do you really plan on starting
But how do you know whether the information is accurate or not? Do you really plan on starting your business and investing your time and money without ensuring the information you
your business and investing your time and money without ensuring the information you
your business and investing your time and money without ensuring the information you collected and the research you have is correct? Always do double research and double check
collected and the research you have is correct? Always do double research and double check
collected and the research you have is correct? Always do double research and double check your findings. Things like reading statistics online about the growth of a certain industry may be
your findings. Things like reading statistics online about the growth of a certain industry may be
your findings. Things like reading statistics online about the growth of a certain industry may be out of date and no longer relevant. As an example, you may read an article online that says flip
out of date and no longer relevant. As an example, you may read an article online that says flip
out of date and no longer relevant. As an example, you may read an article online that says flip cell phones are taking the industry by storm and sales are up 300% year over year in sales
cell phones are taking the industry by storm and sales are up 300% year over year in sales
cell phones are taking the industry by storm and sales are up 300% year over year in sales growth. In reality, that article may have been posted over 10 years ago. Conduct your research
growth. In reality, that article may have been posted over 10 years ago. Conduct your research
growth. In reality, that article may have been posted over 10 years ago. Conduct your research and double check it. .
and double check it. . and double check it. .
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5. Lack of focus on your competition
5. Lack of focus on your competition
5. Lack of focus on your competition
There is no such thing as no competition. Even if you think your business is unique, and you are There is no such thing as no competition. Even if you think your business is unique, and you are
There is no such thing as no competition. Even if you think your business is unique, and you are fulfilling a need or a want, if you weren’t in business the customer would go somewhere else.
fulfilling a need or a want, if you weren’t in business the customer would go somewhere else.
fulfilling a need or a want, if you weren’t in business the customer would go somewhere else. That is your competition. Not focusing enough on your competitors will endanger your business.
That is your competition. Not focusing enough on your competitors will endanger your business.
That is your competition. Not focusing enough on your competitors will endanger your business. At the same time too much focus on your competition and having the constant fear of failure
At the same time too much focus on your competition and having the constant fear of failure
At the same time too much focus on your competition and having the constant fear of failure will destroy your business. Finding a good compromise and conducting the appropriate
will destroy your business. Finding a good compromise and conducting the appropriate
will destroy your business. Finding a good compromise and conducting the appropriate research is exactly what you need to do.
research is exactly what you need to do.
research is exactly what you need to do.
6. Hiding your weaknesses
6. Hiding your weaknesses
6. Hiding your weaknesses
When going for a job interview, people have different strategies. The first is to hides their When going for a job interview, people have different strategies. The first is to hides their
When going for a job interview, people have different strategies. The first is to hides their weaknesses – and they will most likely end up failing sooner or later. Another is to shows his/her
weaknesses – and they will most likely end up failing sooner or later. Another is to shows his/her
weaknesses – and they will most likely end up failing sooner or later. Another is to shows his/her weaknesses and then the employer isn’t interested. While the third person shares his
weaknesses and then the employer isn’t interested. While the third person shares his
weaknesses and then the employer isn’t interested. While the third person shares his weaknesses and a plan for overcoming them. This is the person that gets hired. It is not any
weaknesses and a plan for overcoming them. This is the person that gets hired. It is not any
weaknesses and a plan for overcoming them. This is the person that gets hired. It is not any different when it comes to running a business and writing a business plan for investors. Your
different when it comes to running a business and writing a business plan for investors. Your
different when it comes to running a business and writing a business plan for investors. Your investors want to make sure you know your weaknesses, and that you have a plan in place to
investors want to make sure you know your weaknesses, and that you have a plan in place to
investors want to make sure you know your weaknesses, and that you have a plan in place to overcome them.
overcome them.
overcome them.
7. Not knowing or not having a distribution channel
7. Not knowing or not having a distribution channel
7. Not knowing or not having a distribution channel
Knowing how to get your product or services across from start to finish (your customers) is Knowing how to get your product or services across from start to finish (your customers) is
Knowing how to get your product or services across from start to finish (your customers) is crucial to the success of your business. It isn’t enough just to say, “I’m going to sell my idea in a
crucial to the success of your business. It isn’t enough just to say, “I’m going to sell my idea in a
crucial to the success of your business. It isn’t enough just to say, “I’m going to sell my idea in a store!” You must have a plan to get into that store. Do you know how difficult it is to get into a
store!” You must have a plan to get into that store. Do you know how difficult it is to get into a
store!” You must have a plan to get into that store. Do you know how difficult it is to get into a retail store to sell your products? Showing potential investors you have thought it out, and that
retail store to sell your products? Showing potential investors you have thought it out, and that
retail store to sell your products? Showing potential investors you have thought it out, and that you have an action plan is much better than just saying what you think you can do.
you have an action plan is much better than just saying what you think you can do. you have an action plan is much better than just saying what you think you can do.
8. Providing too much information
8. Providing too much information
8. Providing too much information
Nobody wants to read a 200 page business plan. Most investors look and listen for the top 10 Nobody wants to read a 200 page business plan. Most investors look and listen for the top 10
Nobody wants to read a 200 page business plan. Most investors look and listen for the top 10 points in a business plan. If you take too long to get to these points, you’ve lost them before
points in a business plan. If you take too long to get to these points, you’ve lost them before
points in a business plan. If you take too long to get to these points, you’ve lost them before you even had a chance to start. Remember that the purpose of your business plan when
you even had a chance to start. Remember that the purpose of your business plan when
you even had a chance to start. Remember that the purpose of your business plan when presenting to investors is not to show how much work has gone into putting it together, but to
presenting to investors is not to show how much work has gone into putting it together, but to
presenting to investors is not to show how much work has gone into putting it together, but to show your idea, your goals, and your plan of action. Really, investors are just waiting to hear
show your idea, your goals, and your plan of action. Really, investors are just waiting to hear
show your idea, your goals, and your plan of action. Really, investors are just waiting to hear how their investment will help you, what it will get them in return, and how soon.
how their investment will help you, what it will get them in return, and how soon. how their investment will help you, what it will get them in return, and how soon.
9. Being inconsistent
9. Being inconsistent
9. Being inconsistent
Take time to review your completed business plan. If you have partners, or multiple people Take time to review your completed business plan. If you have partners, or multiple people
Take time to review your completed business plan. If you have partners, or multiple people writing your business plan, it is important you are all on the same page and have the exact same
writing your business plan, it is important you are all on the same page and have the exact same
writing your business plan, it is important you are all on the same page and have the exact same vision. Contradicting yourself or being inconsistent throughout your plan will turn away
vision. Contradicting yourself or being inconsistent throughout your plan will turn away
vision. Contradicting yourself or being inconsistent throughout your plan will turn away investors.
investors.
investors.
10. Not asking for help
10. Not asking for help
10. Not asking for help
As shown, writing a business plan, takes a lot of time and patience. Sometimes you just want to As shown, writing a business plan, takes a lot of time and patience. Sometimes you just want to
As shown, writing a business plan, takes a lot of time and patience. Sometimes you just want to get it over and done with. It is important that you ask for assistance on certain sections where
get it over and done with. It is important that you ask for assistance on certain sections where
get it over and done with. It is important that you ask for assistance on certain sections where you seem to be stuck. Help can be professional advice or just an extra set of eyes. It is always
you seem to be stuck. Help can be professional advice or just an extra set of eyes. It is always you seem to be stuck. Help can be professional advice or just an extra set of eyes. It is always
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suggested to have more people read over your business plan and offer their feedback and suggested to have more people read over your business plan and offer their feedback and
suggested to have more people read over your business plan and offer their feedback and support. Simple grammatical errors or run-on sentences can turn away certain investors.
support. Simple grammatical errors or run-on sentences can turn away certain investors. support. Simple grammatical errors or run-on sentences can turn away certain investors. These are just 10 of the most common mistakes people make when writing a business plan. Be sure to These are just 10 of the most common mistakes people make when writing a business plan. Be sure to
These are just 10 of the most common mistakes people make when writing a business plan. Be sure to not make the same ones.
not make the same ones.
not make the same ones.
In what order should you write your business plan in? In what order should you write your business plan in? In what order should you write your business plan in?
Most people think that writing a good
Most people think that writing a good
Most people think that writing a good
business plan is as simple as starting on the
business plan is as simple as starting on the
business plan is as simple as starting on the
first page and working all the way to the end.
first page and working all the way to the end.
first page and working all the way to the end.
However, the first page(s), are usually the last
However, the first page(s), are usually the last
However, the first page(s), are usually the last
that you should do. Why is this?
that you should do. Why is this?
that you should do. Why is this?
Well, the first section of your business plan is
Well, the first section of your business plan is
Well, the first section of your business plan is
your executive summary. Your executive
your executive summary. Your executive
your executive summary. Your executive
summary takes your entire plan and
summary takes your entire plan and
summary takes your entire plan and
summarizes your business. This portion of
summarizes your business. This portion of
summarizes your business. This portion of
your plan summarizes what you want and
your plan summarizes what you want and
your plan summarizes what you want and
what you are looking for – especially from
what you are looking for – especially from
what you are looking for – especially from
investors. Think of it this way, an executive
investors. Think of it this way, an executive
investors. Think of it this way, an executive
business plan is most of the time, your sales presentation. Most investors will look first at this set of business plan is most of the time, your sales presentation. Most investors will look first at this set of
business plan is most of the time, your sales presentation. Most investors will look first at this set of pages to see whether the business they are about to invest in is pleasing to them or not. The executive
pages to see whether the business they are about to invest in is pleasing to them or not. The executive
pages to see whether the business they are about to invest in is pleasing to them or not. The executive summary captures all of the main interesting points, outlines your plan of action, and showcases your
summary captures all of the main interesting points, outlines your plan of action, and showcases your
summary captures all of the main interesting points, outlines your plan of action, and showcases your vision for your company. It also expresses what most entrepreneurs have a tough time saying to
vision for your company. It also expresses what most entrepreneurs have a tough time saying to
vision for your company. It also expresses what most entrepreneurs have a tough time saying to investors, “This is who I am, and this is what I want or need from you”. It has to be appealing and
investors, “This is who I am, and this is what I want or need from you”. It has to be appealing and
investors, “This is who I am, and this is what I want or need from you”. It has to be appealing and persuasive enough to give the investors the desire to invest in you.
persuasive enough to give the investors the desire to invest in you.
persuasive enough to give the investors the desire to invest in you.
Your business plan has to follow the outline most professional business plan writers use. These Your business plan has to follow the outline most professional business plan writers use. These
Your business plan has to follow the outline most professional business plan writers use. These components are discussed below and we recommend you follow this format:
components are discussed below and we recommend you follow this format:
components are discussed below and we recommend you follow this format:
∙ Executive Summary
∙ Executive Summary
∙ Executive Summary
The executive summary or the company overview outlines your mission, vision, values, The executive summary or the company overview outlines your mission, vision, values,
The executive summary or the company overview outlines your mission, vision, values, product/services, their unique attributes, and the business opportunity you plan to seize. It also
product/services, their unique attributes, and the business opportunity you plan to seize. It also
product/services, their unique attributes, and the business opportunity you plan to seize. It also is your opportunity to say, “I want this” when presenting to potential investors.
is your opportunity to say, “I want this” when presenting to potential investors.
is your opportunity to say, “I want this” when presenting to potential investors.
∙ Business Environment
∙ Business Environment
∙ Business Environment
The analysis of your industry; your marketplace, your customers, the competition, and how you The analysis of your industry; your marketplace, your customers, the competition, and how you
The analysis of your industry; your marketplace, your customers, the competition, and how you currently measure up or plan on going toe to toe.
currently measure up or plan on going toe to toe.
currently measure up or plan on going toe to toe.
∙ Company Description
∙ Company Description
∙ Company Description
Think about the capabilities which give you a unique advantage over your competitors
Think about the capabilities which give you a unique advantage over your competitors
Think about the capabilities which give you a unique advantage over your competitors
including your management, technology, operations, distribution, services, finances, and including your management, technology, operations, distribution, services, finances, and
including your management, technology, operations, distribution, services, finances, and marketing.
marketing.
marketing.
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∙ Company Strategy
∙ Company Strategy
∙ Company Strategy
The company strategy portion of your business plan is your roadmap to the future. Show how The company strategy portion of your business plan is your roadmap to the future. Show how
The company strategy portion of your business plan is your roadmap to the future. Show how you plan on taking advantage of opportunities and avoiding risks. All of your growth plans,
you plan on taking advantage of opportunities and avoiding risks. All of your growth plans,
you plan on taking advantage of opportunities and avoiding risks. All of your growth plans, marketing plans, and even your business exit strategy are in this section.
marketing plans, and even your business exit strategy are in this section.
marketing plans, and even your business exit strategy are in this section.
∙ Financial Review
∙ Financial Review
∙ Financial Review
What is the state of your business? In the financial review section of your plan you discuss your What is the state of your business? In the financial review section of your plan you discuss your
What is the state of your business? In the financial review section of your plan you discuss your business financial standings. This includes your income statements, the balance sheet, cash
business financial standings. This includes your income statements, the balance sheet, cash
business financial standings. This includes your income statements, the balance sheet, cash flow statement, profit projections and your operational budget.
flow statement, profit projections and your operational budget.
flow statement, profit projections and your operational budget.
∙ Action Plan
∙ Action Plan
∙ Action Plan
Once you have your plan all set, your next step is to take action. Thus, an action plan comes in Once you have your plan all set, your next step is to take action. Thus, an action plan comes in
Once you have your plan all set, your next step is to take action. Thus, an action plan comes in handy. In the action plan, you will jot down the steps you will take to implement your business
handy. In the action plan, you will jot down the steps you will take to implement your business
handy. In the action plan, you will jot down the steps you will take to implement your business plan to meet the goals and objectives which you set out to achieve.
plan to meet the goals and objectives which you set out to achieve.
plan to meet the goals and objectives which you set out to achieve.
Ideally, this is what a business plan format should look like. However, every business owner may add a Ideally, this is what a business plan format should look like. However, every business owner may add a
Ideally, this is what a business plan format should look like. However, every business owner may add a unique twist to their own plan. It is recommended to keep the terminology the same as potential
unique twist to their own plan. It is recommended to keep the terminology the same as potential
unique twist to their own plan. It is recommended to keep the terminology the same as potential investors look to those specific sections to help aid their decision-making process. Spend some time
investors look to those specific sections to help aid their decision-making process. Spend some time
investors look to those specific sections to help aid their decision-making process. Spend some time and look at some business plan samples and templates to get more familiar with the proper order of
and look at some business plan samples and templates to get more familiar with the proper order of
and look at some business plan samples and templates to get more familiar with the proper order of business plan writing.
business plan writing.
business plan writing.
Should you be using software to help you write your business plan? Should you be using software to help you write your business plan? Should you be using software to help you write your business plan?Writing a business plan can be very time consuming and confusing – especially if you’ve never written Writing a business plan can be very time consuming and confusing – especially if you’ve never written
Writing a business plan can be very time consuming and confusing – especially if you’ve never written one before. Hiring a professional to help you write the perfect business plan can cost you anywhere
one before. Hiring a professional to help you write the perfect business plan can cost you anywhere
one before. Hiring a professional to help you write the perfect business plan can cost you anywhere from $3,000 to $5,000 for a completed and well researched plan.
from $3,000 to $5,000 for a completed and well researched plan.
from $3,000 to $5,000 for a completed and well researched plan.
Business plan writing software can cost less than a $100 and seem appealing. But when it comes to Business plan writing software can cost less than a $100 and seem appealing. But when it comes to
Business plan writing software can cost less than a $100 and seem appealing. But when it comes to writing your plan, is software a good idea?
writing your plan, is software a good idea?
writing your plan, is software a good idea?
Business planning software can help you figure out the questions you need to have answered in a Business planning software can help you figure out the questions you need to have answered in a
Business planning software can help you figure out the questions you need to have answered in a business plan. Business planning software helps you get a business plan together piece by piece and can
business plan. Business planning software helps you get a business plan together piece by piece and can
business plan. Business planning software helps you get a business plan together piece by piece and can help you complete one much faster than you would starting from scratch. At the same time, most
help you complete one much faster than you would starting from scratch. At the same time, most
help you complete one much faster than you would starting from scratch. At the same time, most business planning software misses out on important details which investors look for, such as your own
business planning software misses out on important details which investors look for, such as your own
business planning software misses out on important details which investors look for, such as your own personal touch.
personal touch.
personal touch.
While they are useful, and some of them are pretty amazing at quickly generating a business plan, While they are useful, and some of them are pretty amazing at quickly generating a business plan,
While they are useful, and some of them are pretty amazing at quickly generating a business plan, others produce amateurish results- and trust us, this isn’t what you want to show an investor, business
others produce amateurish results- and trust us, this isn’t what you want to show an investor, business
others produce amateurish results- and trust us, this isn’t what you want to show an investor, business advisor in a bank, or a funding program coordinator at a government agency.
advisor in a bank, or a funding program coordinator at a government agency.
advisor in a bank, or a funding program coordinator at a government agency.
We recommend business planning software as a helpful resource to get started. To get the most out of We recommend business planning software as a helpful resource to get started. To get the most out of
We recommend business planning software as a helpful resource to get started. To get the most out of business plan writing, use a professional writer or follow a strict business plan writing guideline.
business plan writing, use a professional writer or follow a strict business plan writing guideline. business plan writing, use a professional writer or follow a strict business plan writing guideline.
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Where can you find sample business plans and templates? Where can you find sample business plans and templates? Where can you find sample business plans and templates? Just as with business plan writing software, business plan samples and templates have their own pros
Just as with business plan writing software, business plan samples and templates have their own pros
Just as with business plan writing software, business plan samples and templates have their own pros and cons. If you are simply reviewing a sample business plan for the outline, great – however if you are
and cons. If you are simply reviewing a sample business plan for the outline, great – however if you are
and cons. If you are simply reviewing a sample business plan for the outline, great – however if you are matching components of another plan to your own, you are headed in the wrong direction.
matching components of another plan to your own, you are headed in the wrong direction. matching components of another plan to your own, you are headed in the wrong direction. Most sample business plans on the web are created as “samples only”. These documents are not from Most sample business plans on the web are created as “samples only”. These documents are not from
Most sample business plans on the web are created as “samples only”. These documents are not from real functioning businesses, but strictly created as dummy business plans to be used as a resource to
real functioning businesses, but strictly created as dummy business plans to be used as a resource to
real functioning businesses, but strictly created as dummy business plans to be used as a resource to help draft actual business plans.
help draft actual business plans.
help draft actual business plans.
99% of the time the statistics, facts, and figures are incorrect and should not be used. 99% of the time the statistics, facts, and figures are incorrect and should not be used. 99% of the time the statistics, facts, and figures are incorrect and should not be used. On the other hand, they do give you a good idea of what a business plan should look like. Using sample
On the other hand, they do give you a good idea of what a business plan should look like. Using sample
On the other hand, they do give you a good idea of what a business plan should look like. Using sample and business plan templates, you should have enough examples to get started on one of your own
and business plan templates, you should have enough examples to get started on one of your own
and business plan templates, you should have enough examples to get started on one of your own business plans.
business plans.
business plans.
The best way to find sample business plans or templates is to search online. Simply type in your The best way to find sample business plans or templates is to search online. Simply type in your
The best way to find sample business plans or templates is to search online. Simply type in your industry name, plus the keyword phrase “business plan sample”, or “business plan template” and this
industry name, plus the keyword phrase “business plan sample”, or “business plan template” and this
industry name, plus the keyword phrase “business plan sample”, or “business plan template” and this should yield some good results for you to review.
should yield some good results for you to review.
should yield some good results for you to review.
How long should your business plan be?
How long should your business plan be?
How long should your business plan be?
The length of a business plan really shouldn’t be an issue for you, or something to think about at the The length of a business plan really shouldn’t be an issue for you, or something to think about at the
The length of a business plan really shouldn’t be an issue for you, or something to think about at the early stages. Your business plan should cover all of the important components and include any and all
early stages. Your business plan should cover all of the important components and include any and all
early stages. Your business plan should cover all of the important components and include any and all information you believe is relevant, helpful, and that a potential investor would be interested in
information you believe is relevant, helpful, and that a potential investor would be interested in
information you believe is relevant, helpful, and that a potential investor would be interested in knowing.
knowing.
knowing.
It is important to cover the basics and explain enough to build an understanding of what you are trying It is important to cover the basics and explain enough to build an understanding of what you are trying
It is important to cover the basics and explain enough to build an understanding of what you are trying to accomplish for the reader. If you go overboard and over explain, the reader would be bored half way
to accomplish for the reader. If you go overboard and over explain, the reader would be bored half way
to accomplish for the reader. If you go overboard and over explain, the reader would be bored half way through and you could potentially lose the investor.
through and you could potentially lose the investor.
through and you could potentially lose the investor.
At the same time, if you don’t provide enough details in certain sections of your business plan, the At the same time, if you don’t provide enough details in certain sections of your business plan, the
At the same time, if you don’t provide enough details in certain sections of your business plan, the reader or investor may feel that they don’t have enough information, or that your business idea is not
reader or investor may feel that they don’t have enough information, or that your business idea is not
reader or investor may feel that they don’t have enough information, or that your business idea is not ready for funding.
ready for funding.
ready for funding.
A business plan can be anywhere from one to one hundred pages. This really depends on you, your A business plan can be anywhere from one to one hundred pages. This really depends on you, your
A business plan can be anywhere from one to one hundred pages. This really depends on you, your research, and the purpose of your business plan.
research, and the purpose of your business plan.
research, and the purpose of your business plan.
If you are writing a plan to obtain funding, ensuring all of the components are there and you feel If you are writing a plan to obtain funding, ensuring all of the components are there and you feel
If you are writing a plan to obtain funding, ensuring all of the components are there and you feel confident you’ve answered all potential questions, the length of your plan should not matter.
confident you’ve answered all potential questions, the length of your plan should not matter. confident you’ve answered all potential questions, the length of your plan should not matter. If the plan you are writing is just for you and your partners to use as a business reference or checklist, If the plan you are writing is just for you and your partners to use as a business reference or checklist,
If the plan you are writing is just for you and your partners to use as a business reference or checklist, again ensuring you have enough information is all that matters. The length of the business plan does
again ensuring you have enough information is all that matters. The length of the business plan does
again ensuring you have enough information is all that matters. The length of the business plan does not matter here.
not matter here.
not matter here.
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It is important to understand that the business plan is for you and for your investors. We cannot stress It is important to understand that the business plan is for you and for your investors. We cannot stress
It is important to understand that the business plan is for you and for your investors. We cannot stress enough how completing all of the components of a business plan is highly recommended.
enough how completing all of the components of a business plan is highly recommended. enough how completing all of the components of a business plan is highly recommended.
Can you go on without having a business plan?
Can you go on without having a business plan?
Can you go on without having a business plan?
Sure you can!
Sure you can!
Sure you can!
However, with the number of small business startups which fail every year due to lack of planning, it is However, with the number of small business startups which fail every year due to lack of planning, it is
However, with the number of small business startups which fail every year due to lack of planning, it is alarming to think you could suffer the same fate without a proper business plan or blueprint.
alarming to think you could suffer the same fate without a proper business plan or blueprint. alarming to think you could suffer the same fate without a proper business plan or blueprint. If you are planning on starting something that is more complex than a lemonade stand, if you wish now If you are planning on starting something that is more complex than a lemonade stand, if you wish now
If you are planning on starting something that is more complex than a lemonade stand, if you wish now or in the future to obtain a business loan or any sort of financial assistance, if you are looking for a
or in the future to obtain a business loan or any sort of financial assistance, if you are looking for a
or in the future to obtain a business loan or any sort of financial assistance, if you are looking for a business partner or investor – or if you are thinking of selling your business one day – you need a
business partner or investor – or if you are thinking of selling your business one day – you need a
business partner or investor – or if you are thinking of selling your business one day – you need a business plan.
business plan.
business plan.
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10.BUSINESS CONTINUITY PLANNING 10.BUSINESS CONTINUITY PLANNING 10.BUSINESS CONTINUITY PLANNING When it comes to business, especially in new business, a plan is very important in order to keep the
When it comes to business, especially in new business, a plan is very important in order to keep the
When it comes to business, especially in new business, a plan is very important in order to keep the operation moving forward. Problems arise in every business. Whatever situation arises, you as a small
operation moving forward. Problems arise in every business. Whatever situation arises, you as a small
operation moving forward. Problems arise in every business. Whatever situation arises, you as a small business owner need to be prepared for it. You don’t want all of your hard work to go to waste because
business owner need to be prepared for it. You don’t want all of your hard work to go to waste because
business owner need to be prepared for it. You don’t want all of your hard work to go to waste because of an unforeseen problem that you might have been able to prepare for.
of an unforeseen problem that you might have been able to prepare for.
of an unforeseen problem that you might have been able to prepare for.
Problems can come pop up in an instant which can put your business at risk or shut you down for good Problems can come pop up in an instant which can put your business at risk or shut you down for good
Problems can come pop up in an instant which can put your business at risk or shut you down for good if you’re not prepared. Whether it’s a natural disaster such as a snow storm-especially here in Canada-
if you’re not prepared. Whether it’s a natural disaster such as a snow storm-especially here in Canada-
if you’re not prepared. Whether it’s a natural disaster such as a snow storm-especially here in Canada- an emergency situation, a supplier issue, merchant payment processing problems or anything else that
an emergency situation, a supplier issue, merchant payment processing problems or anything else that
an emergency situation, a supplier issue, merchant payment processing problems or anything else that may come up, having an emergency business “move-forward” plan is always a good idea.
may come up, having an emergency business “move-forward” plan is always a good idea. may come up, having an emergency business “move-forward” plan is always a good idea.
What are the steps of business continuity planning? What are the steps of business continuity planning? What are the steps of business continuity planning?
While no one can predict the future and know what will happen or go wrong, you can be ready with a While no one can predict the future and know what will happen or go wrong, you can be ready with a
While no one can predict the future and know what will happen or go wrong, you can be ready with a business continuity plan and handle any situation that may come up.
business continuity plan and handle any situation that may come up.
business continuity plan and handle any situation that may come up.
With a business continuity plan you are preparing your business to move through a difficult time should With a business continuity plan you are preparing your business to move through a difficult time should
With a business continuity plan you are preparing your business to move through a difficult time should one arise. You are also showing your employees, investors, and customers that you are on the up and
one arise. You are also showing your employees, investors, and customers that you are on the up and
one arise. You are also showing your employees, investors, and customers that you are on the up and up- you are proactive, efficient, you care about your business and want to ensure you can still operate
up- you are proactive, efficient, you care about your business and want to ensure you can still operate
up- you are proactive, efficient, you care about your business and want to ensure you can still operate during a serious threat or disruption.
during a serious threat or disruption.
during a serious threat or disruption.
Step 1: Assign Emergency Contact Persons and Responsibilities
Step 1: Assign Emergency Contact Persons and Responsibilities
Step 1: Assign Emergency Contact Persons and Responsibilities
When emergencies occur, most people panic and don’t know what to do first. Think of young children When emergencies occur, most people panic and don’t know what to do first. Think of young children
When emergencies occur, most people panic and don’t know what to do first. Think of young children in school without the guidance of a teacher and the fire alarm goes off.
in school without the guidance of a teacher and the fire alarm goes off.
in school without the guidance of a teacher and the fire alarm goes off.
You don’t want to be in that situation, especially when your business and potentially people’s lives are You don’t want to be in that situation, especially when your business and potentially people’s lives are
You don’t want to be in that situation, especially when your business and potentially people’s lives are at stake. It is always a good idea to assign a point person who everybody should listen to, or follow in
at stake. It is always a good idea to assign a point person who everybody should listen to, or follow in
at stake. It is always a good idea to assign a point person who everybody should listen to, or follow in case of emergencies. On top of a key person, responsibilities should be assigned so that important
case of emergencies. On top of a key person, responsibilities should be assigned so that important
case of emergencies. On top of a key person, responsibilities should be assigned so that important procedures of your business are kept functional in case of emergencies.
procedures of your business are kept functional in case of emergencies.
procedures of your business are kept functional in case of emergencies.
It is important that this key person is a manager – somebody with leadership skills who can actually get It is important that this key person is a manager – somebody with leadership skills who can actually get
It is important that this key person is a manager – somebody with leadership skills who can actually get things done.
things done.
things done.
Here is a quick example of assigning an emergency contact person, as well as key roles. Here is a quick example of assigning an emergency contact person, as well as key roles. Here is a quick example of assigning an emergency contact person, as well as key roles. Let’s say that you recently started a small factory producing parts for a local auto manufacturer. Your
Let’s say that you recently started a small factory producing parts for a local auto manufacturer. Your
Let’s say that you recently started a small factory producing parts for a local auto manufacturer. Your production line is a fast moving machine with employees at the start, middle and end of the line who must
production line is a fast moving machine with employees at the start, middle and end of the line who must
production line is a fast moving machine with employees at the start, middle and end of the line who must be there to ensure the machine and the line is moving along fine. You as the small business owner just took
be there to ensure the machine and the line is moving along fine. You as the small business owner just took
be there to ensure the machine and the line is moving along fine. You as the small business owner just took out a loan for $250,000 to purchase this new machine to make your business functional.
out a loan for $250,000 to purchase this new machine to make your business functional. out a loan for $250,000 to purchase this new machine to make your business functional. The fire alarm sounds and you smell smoke – everyone must evacuate the building. Without assigning roles The fire alarm sounds and you smell smoke – everyone must evacuate the building. Without assigning roles
The fire alarm sounds and you smell smoke – everyone must evacuate the building. Without assigning roles or an emergency contact person, everyone left the building. It was a false alarm as there was burning
or an emergency contact person, everyone left the building. It was a false alarm as there was burning
or an emergency contact person, everyone left the building. It was a false alarm as there was burning popcorn in the lunchroom. Upon your return, you find the $250,000 machine still functioning as if business
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was going as usual. But, since there were no employees supervising the production line ensuring all is going was going as usual. But, since there were no employees supervising the production line ensuring all is going
was going as usual. But, since there were no employees supervising the production line ensuring all is going well, the machine clogged, products were falling of the line, and you estimated hundreds of items damaged,
well, the machine clogged, products were falling of the line, and you estimated hundreds of items damaged,
well, the machine clogged, products were falling of the line, and you estimated hundreds of items damaged, and damage to the machine itself.
and damage to the machine itself.
and damage to the machine itself.
You potentially just lost thousands of dollars and have a damaged machine, disabling you from moving You potentially just lost thousands of dollars and have a damaged machine, disabling you from moving
You potentially just lost thousands of dollars and have a damaged machine, disabling you from moving forward until all is fixed – and you are on a tight deadline.
forward until all is fixed – and you are on a tight deadline.
forward until all is fixed – and you are on a tight deadline.
If you had only defined the key roles in case of an emergency, and prepared the key contact person all this If you had only defined the key roles in case of an emergency, and prepared the key contact person all this
If you had only defined the key roles in case of an emergency, and prepared the key contact person all this could have been avoided. In case of the fire alarm, your contact person would let the team know to power
could have been avoided. In case of the fire alarm, your contact person would let the team know to power
could have been avoided. In case of the fire alarm, your contact person would let the team know to power off the production line and the machine to avoid damage. They would also help everyone calmly evacuate
off the production line and the machine to avoid damage. They would also help everyone calmly evacuate
off the production line and the machine to avoid damage. They would also help everyone calmly evacuate and both your employees and equipment would be safe.
and both your employees and equipment would be safe.
and both your employees and equipment would be safe.
This is just one example of a fire in a factory. However, it shows the importance of setting your key roles This is just one example of a fire in a factory. However, it shows the importance of setting your key roles
This is just one example of a fire in a factory. However, it shows the importance of setting your key roles and responsibilities in case of an emergency. It is important to work with your emergency contact
and responsibilities in case of an emergency. It is important to work with your emergency contact
and responsibilities in case of an emergency. It is important to work with your emergency contact person during the planning and implementation stage. Work together on policies and procedures.
person during the planning and implementation stage. Work together on policies and procedures.
person during the planning and implementation stage. Work together on policies and procedures. Ensure they are well educated on all aspects of your business and emergency planning.
Ensure they are well educated on all aspects of your business and emergency planning. Ensure they are well educated on all aspects of your business and emergency planning. Also note that emergency planning doesn’t always mean fire damage or natural disasters. It can also be Also note that emergency planning doesn’t always mean fire damage or natural disasters. It can also be
Also note that emergency planning doesn’t always mean fire damage or natural disasters. It can also be as simple as employees not showing up for work, power outages, or running out of money.
as simple as employees not showing up for work, power outages, or running out of money. as simple as employees not showing up for work, power outages, or running out of money. Step 2: Determine Essential Services and Prioritize
Step 2: Determine Essential Services and Prioritize
Step 2: Determine Essential Services and Prioritize
Once you have an emergency preparedness plan in place and you’ve discussed any procedures with Once you have an emergency preparedness plan in place and you’ve discussed any procedures with
Once you have an emergency preparedness plan in place and you’ve discussed any procedures with your emergency contact person, it is important to have continuous updates and communication with
your emergency contact person, it is important to have continuous updates and communication with
your emergency contact person, it is important to have continuous updates and communication with your team and staff. Even though one person, or one team is the “emergency team”, it is important
your team and staff. Even though one person, or one team is the “emergency team”, it is important
your team and staff. Even though one person, or one team is the “emergency team”, it is important that everyone in the company is prepared for the worst.
that everyone in the company is prepared for the worst.
that everyone in the company is prepared for the worst.
Your next step is to determine the essential services of your business in case of these emergencies. By Your next step is to determine the essential services of your business in case of these emergencies. By
Your next step is to determine the essential services of your business in case of these emergencies. By determining the essential services and by prioritizing them, you can prepare and avoid maximum
determining the essential services and by prioritizing them, you can prepare and avoid maximum
determining the essential services and by prioritizing them, you can prepare and avoid maximum damage to your business.
damage to your business.
damage to your business.
Prioritizing should be done on a profitability basis. You should always do what is the most profitable for Prioritizing should be done on a profitability basis. You should always do what is the most profitable for
Prioritizing should be done on a profitability basis. You should always do what is the most profitable for your business first, followed by the next most profitable thing. At the same time, businesses may have
your business first, followed by the next most profitable thing. At the same time, businesses may have
your business first, followed by the next most profitable thing. At the same time, businesses may have tasks and duties that don’t seem profitable or don’t seem to have an effect on your business – but could
tasks and duties that don’t seem profitable or don’t seem to have an effect on your business – but could
tasks and duties that don’t seem profitable or don’t seem to have an effect on your business – but could affect something else. These should all be considered into the prioritization.
affect something else. These should all be considered into the prioritization.
affect something else. These should all be considered into the prioritization.
When developing your emergency business continuity plan, you should take all aspects of your business When developing your emergency business continuity plan, you should take all aspects of your business
When developing your emergency business continuity plan, you should take all aspects of your business into consideration.
into consideration.
into consideration.
Step 3: Identify the potential threats
Step 3: Identify the potential threats
Step 3: Identify the potential threats
In any business, the owner is usually the one who knows what the potential threats may be. Whether it In any business, the owner is usually the one who knows what the potential threats may be. Whether it
In any business, the owner is usually the one who knows what the potential threats may be. Whether it be natural disasters, competition moving in, financial issues, or absent employees, you need to identify
be natural disasters, competition moving in, financial issues, or absent employees, you need to identify
be natural disasters, competition moving in, financial issues, or absent employees, you need to identify all threats and have a plan for overcoming them.
all threats and have a plan for overcoming them.
all threats and have a plan for overcoming them.
In your preparedness plan, you should outline each potential threat and discuss all issues which may be In your preparedness plan, you should outline each potential threat and discuss all issues which may be
In your preparedness plan, you should outline each potential threat and discuss all issues which may be related to that threat. An action plan for each individual threat is recommended along with assigning
related to that threat. An action plan for each individual threat is recommended along with assigning
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key responsibilities to people in your organization to help mitigate the potential effects on your key responsibilities to people in your organization to help mitigate the potential effects on your
key responsibilities to people in your organization to help mitigate the potential effects on your business.
business.
business.
It is important to have a detailed description of all of the services and functions of your business It is important to have a detailed description of all of the services and functions of your business
It is important to have a detailed description of all of the services and functions of your business outlined so that your key people understand the procedures of keeping your business running.
outlined so that your key people understand the procedures of keeping your business running. outlined so that your key people understand the procedures of keeping your business running. Step 4: Review Your Business Continuity Plan
Step 4: Review Your Business Continuity Plan
Step 4: Review Your Business Continuity Plan
It may seem silly to talk about natural disasters and preparing for them with your staff. But rest assured It may seem silly to talk about natural disasters and preparing for them with your staff. But rest assured
It may seem silly to talk about natural disasters and preparing for them with your staff. But rest assured that your employees will appreciate it. It will show them you are thinking ahead and care about them
that your employees will appreciate it. It will show them you are thinking ahead and care about them
that your employees will appreciate it. It will show them you are thinking ahead and care about them and their livelihood. Not only will your employees be satisfied, but you are preparing your business for a
and their livelihood. Not only will your employees be satisfied, but you are preparing your business for a
and their livelihood. Not only will your employees be satisfied, but you are preparing your business for a strong likelihood of being operational during emergencies.
strong likelihood of being operational during emergencies.
strong likelihood of being operational during emergencies.
It is important to discuss your plan with your staff and to assign the key people and key responsibilities. It is important to discuss your plan with your staff and to assign the key people and key responsibilities.
It is important to discuss your plan with your staff and to assign the key people and key responsibilities. It is also important to continually review your plan and test it.
It is also important to continually review your plan and test it.
It is also important to continually review your plan and test it.
Step 5: Testing and Updating Your Plan
Step 5: Testing and Updating Your Plan
Step 5: Testing and Updating Your Plan
Responsibilities in a business change as the small business grows. Your staff may change year after year Responsibilities in a business change as the small business grows. Your staff may change year after year
Responsibilities in a business change as the small business grows. Your staff may change year after year – and it is your responsibility as a business owner that you prepare your staff over and over for
– and it is your responsibility as a business owner that you prepare your staff over and over for
– and it is your responsibility as a business owner that you prepare your staff over and over for emergencies. Taking your plan and ensuring that it is up to date with key responsibilities and business
emergencies. Taking your plan and ensuring that it is up to date with key responsibilities and business
emergencies. Taking your plan and ensuring that it is up to date with key responsibilities and business procedures is necessary to ensure up-time during any emergencies.
procedures is necessary to ensure up-time during any emergencies.
procedures is necessary to ensure up-time during any emergencies.
A business continuity plan is yet another plan or checklist which is highly recommended by successful A business continuity plan is yet another plan or checklist which is highly recommended by successful
A business continuity plan is yet another plan or checklist which is highly recommended by successful entrepreneurs. It doesn’t necessarily need to be written down, but the important procedures should be
entrepreneurs. It doesn’t necessarily need to be written down, but the important procedures should be
entrepreneurs. It doesn’t necessarily need to be written down, but the important procedures should be made aware of, and constantly updated.
made aware of, and constantly updated.
made aware of, and constantly updated.
The last thing you want is to have all of that hard work making your small business dream into a reality The last thing you want is to have all of that hard work making your small business dream into a reality
The last thing you want is to have all of that hard work making your small business dream into a reality wasted due to an unexpected problem that could have been avoided by planning ahead.
wasted due to an unexpected problem that could have been avoided by planning ahead. wasted due to an unexpected problem that could have been avoided by planning ahead. No matter if you are the only person running your business, or if you have business partners, or multiple No matter if you are the only person running your business, or if you have business partners, or multiple
No matter if you are the only person running your business, or if you have business partners, or multiple employees – a proper plan, shared among the company should be always in the back of your, or your
employees – a proper plan, shared among the company should be always in the back of your, or your
employees – a proper plan, shared among the company should be always in the back of your, or your staff’s minds.
staff’s minds.
staff’s minds.
Be prepared for the worst and you will already be ahead when the going gets tough.
Be prepared for the worst and you will already be ahead when the going gets tough.
Be prepared for the worst and you will already be ahead when the going gets tough.
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11.WRITING YOUR BUSINESS PLAN 11.WRITING YOUR BUSINESS PLAN 11.WRITING YOUR BUSINESS PLAN As a small business owner, or start-up entrepreneur a business plan is your best friend. However, most
As a small business owner, or start-up entrepreneur a business plan is your best friend. However, most
As a small business owner, or start-up entrepreneur a business plan is your best friend. However, most people cringe at the idea of writing one.
people cringe at the idea of writing one.
people cringe at the idea of writing one.
Business plan writing is time consuming, complicated, and confusing. Most people just starting out, Business plan writing is time consuming, complicated, and confusing. Most people just starting out,
Business plan writing is time consuming, complicated, and confusing. Most people just starting out, simply say “I’ll get to it eventually”. This is one of the biggest mistakes a small business owner can make,
simply say “I’ll get to it eventually”. This is one of the biggest mistakes a small business owner can make,
simply say “I’ll get to it eventually”. This is one of the biggest mistakes a small business owner can make, especially in the start-up stage of the business. We’ve already discussed why it’s important to have a
especially in the start-up stage of the business. We’ve already discussed why it’s important to have a
especially in the start-up stage of the business. We’ve already discussed why it’s important to have a business plan for your small business. Let’s now instead dive into each of the components of your
business plan for your small business. Let’s now instead dive into each of the components of your
business plan for your small business. Let’s now instead dive into each of the components of your business plan.
business plan.
business plan.
The business plan writing style you opt for depends on the purpose for your business plan. Are you The business plan writing style you opt for depends on the purpose for your business plan. Are you
The business plan writing style you opt for depends on the purpose for your business plan. Are you writing that plan for the purpose of attracting funding from banks, investors, or the government? Or, is
writing that plan for the purpose of attracting funding from banks, investors, or the government? Or, is
writing that plan for the purpose of attracting funding from banks, investors, or the government? Or, is this plan intended for internal use only?
this plan intended for internal use only?
this plan intended for internal use only?
Depending on the purpose of your plan, the style of writing may be different. However, a business plan Depending on the purpose of your plan, the style of writing may be different. However, a business plan
Depending on the purpose of your plan, the style of writing may be different. However, a business plan should always be written in a standard format. It should be written and presented in a way banks and
should always be written in a standard format. It should be written and presented in a way banks and
should always be written in a standard format. It should be written and presented in a way banks and investors are accustomed to.
investors are accustomed to.
investors are accustomed to.
By following a standard business plan outline, it will keep you on track and increase your chances of By following a standard business plan outline, it will keep you on track and increase your chances of
By following a standard business plan outline, it will keep you on track and increase your chances of obtaining funding from banks and investors. Also, by following the standard outline, you will ensure all
obtaining funding from banks and investors. Also, by following the standard outline, you will ensure all
obtaining funding from banks and investors. Also, by following the standard outline, you will ensure all aspects of the business plan are completed, giving you the most knowledge regarding your business,
aspects of the business plan are completed, giving you the most knowledge regarding your business,
aspects of the business plan are completed, giving you the most knowledge regarding your business, the industry, and the potential success of your business.
the industry, and the potential success of your business.
the industry, and the potential success of your business.
It is important to build your plan and then organize it into the layout of your choice. Why? It is It is important to build your plan and then organize it into the layout of your choice. Why? It is
It is important to build your plan and then organize it into the layout of your choice. Why? It is important to make your business plan unique to you. You can keep the standard titles of each section or
important to make your business plan unique to you. You can keep the standard titles of each section or
important to make your business plan unique to you. You can keep the standard titles of each section or you can customize them according to your preferences. However, maintaining the information required
you can customize them according to your preferences. However, maintaining the information required
you can customize them according to your preferences. However, maintaining the information required from each component of a plan is highly recommended.
from each component of a plan is highly recommended.
from each component of a plan is highly recommended.
Is the order of the business plan important?
Is the order of the business plan important?
Is the order of the business plan important?
Not necessarily. What is important is to ensure that you cover all of the main components. Even though Not necessarily. What is important is to ensure that you cover all of the main components. Even though
Not necessarily. What is important is to ensure that you cover all of the main components. Even though a standard business plan outline is recommended – you can customize your plan to match your own
a standard business plan outline is recommended – you can customize your plan to match your own
a standard business plan outline is recommended – you can customize your plan to match your own personality and your own business.
personality and your own business.
personality and your own business.
Remember that the way you present the business plan isn’t necessarily the same way you would write Remember that the way you present the business plan isn’t necessarily the same way you would write
Remember that the way you present the business plan isn’t necessarily the same way you would write your business plan. For example, the executive summary – even though it appears first on the list of the
your business plan. For example, the executive summary – even though it appears first on the list of the
your business plan. For example, the executive summary – even though it appears first on the list of the business plan outline, it usually is the last section to be written, as it summarizes the entire document
business plan outline, it usually is the last section to be written, as it summarizes the entire document
business plan outline, it usually is the last section to be written, as it summarizes the entire document for the reader.
for the reader.
for the reader.
We have included below for you a simple business plan outline, along with a quick explanation of each We have included below for you a simple business plan outline, along with a quick explanation of each
We have included below for you a simple business plan outline, along with a quick explanation of each of the components, followed by a more in-depth business plan outline with featured sections listed
of the components, followed by a more in-depth business plan outline with featured sections listed
of the components, followed by a more in-depth business plan outline with featured sections listed from each of the main components.
from each of the main components.
from each of the main components.
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Be sure to read and understand each of the sections before proceeding to use either a business plan Be sure to read and understand each of the sections before proceeding to use either a business plan
Be sure to read and understand each of the sections before proceeding to use either a business plan template, business plan writing software, or starting from scratch. Let our centre know if we can be of
template, business plan writing software, or starting from scratch. Let our centre know if we can be of
template, business plan writing software, or starting from scratch. Let our centre know if we can be of assistance in answering any of your business plan or business startup questions.
assistance in answering any of your business plan or business startup questions.
assistance in answering any of your business plan or business startup questions.
The simple business plan outline includes the following components:
The simple business plan outline includes the following components:
The simple business plan outline includes the following components:
∙ Executive Summary
∙ Executive Summary
∙ Executive Summary
∙ Company Summary
∙ Company Summary
∙ Company Summary
∙ Products and Services
∙ Products and Services
∙ Products and Services
∙ Market Analysis Summary
∙ Market Analysis Summary
∙ Market Analysis Summary
∙ Strategy and Implementation Summary
∙ Strategy and Implementation Summary
∙ Strategy and Implementation Summary
∙ Management Summary
∙ Management Summary
∙ Management Summary
∙ Financial Plan
∙ Financial Plan
∙ Financial Plan
Let’s now take a look at each section of the business plan:
Let’s now take a look at each section of the business plan:
Let’s now take a look at each section of the business plan:
Executive Summary
Executive Summary
Executive Summary
The executive summary portion of your business plan is like the front door to your small business. This The executive summary portion of your business plan is like the front door to your small business. This
The executive summary portion of your business plan is like the front door to your small business. This component is the perfect opportunity for you to capture the reader’s attention and let them know
component is the perfect opportunity for you to capture the reader’s attention and let them know
component is the perfect opportunity for you to capture the reader’s attention and let them know exactly what it is that you do, why they should continue reading, and what you aim to accomplish.
exactly what it is that you do, why they should continue reading, and what you aim to accomplish. exactly what it is that you do, why they should continue reading, and what you aim to accomplish. Most likely you’ve heard of an “elevator pitch” and hopefully have had success doing one. The executive Most likely you’ve heard of an “elevator pitch” and hopefully have had success doing one. The executive
Most likely you’ve heard of an “elevator pitch” and hopefully have had success doing one. The executive summary is really your elevator pitch. For those that aren’t sure what it is, an elevator pitch is an
summary is really your elevator pitch. For those that aren’t sure what it is, an elevator pitch is an
summary is really your elevator pitch. For those that aren’t sure what it is, an elevator pitch is an explanation of your business in a minute or less.
explanation of your business in a minute or less.
explanation of your business in a minute or less.
Think of it this way: you walk into an elevator with potential business investors and they are going to Think of it this way: you walk into an elevator with potential business investors and they are going to
Think of it this way: you walk into an elevator with potential business investors and they are going to the top floor which takes 60 seconds to get to. You have 60 seconds to impress them. This is where you
the top floor which takes 60 seconds to get to. You have 60 seconds to impress them. This is where you
the top floor which takes 60 seconds to get to. You have 60 seconds to impress them. This is where you do all that it takes and pitch them all you’ve got. This is a perfect place for an executive summary to
do all that it takes and pitch them all you’ve got. This is a perfect place for an executive summary to
do all that it takes and pitch them all you’ve got. This is a perfect place for an executive summary to come into play.
come into play.
come into play.
Your executive summary should introduce you, your business, and your products/services. It should Your executive summary should introduce you, your business, and your products/services. It should
Your executive summary should introduce you, your business, and your products/services. It should provide convincing, hard selling evidence of why the reader or business investor should actually listen
provide convincing, hard selling evidence of why the reader or business investor should actually listen
provide convincing, hard selling evidence of why the reader or business investor should actually listen and be interested in investing in you.
and be interested in investing in you.
and be interested in investing in you.
The executive summary should be written last. As we mentioned, even though the executive summary The executive summary should be written last. As we mentioned, even though the executive summary
The executive summary should be written last. As we mentioned, even though the executive summary is the first component of a business plan, many entrepreneurs who’ve had great success choose to write
is the first component of a business plan, many entrepreneurs who’ve had great success choose to write
is the first component of a business plan, many entrepreneurs who’ve had great success choose to write the executive summary after they have completed all of the other components first.
the executive summary after they have completed all of the other components first. the executive summary after they have completed all of the other components first. Ideally, the summary is short, as short just one to two pages and highlights all of the main points you’ve Ideally, the summary is short, as short just one to two pages and highlights all of the main points you’ve
Ideally, the summary is short, as short just one to two pages and highlights all of the main points you’ve made elsewhere in your business plan. By writing the executive summary last, those key points from all
made elsewhere in your business plan. By writing the executive summary last, those key points from all
made elsewhere in your business plan. By writing the executive summary last, those key points from all other sections of your business plan will be easy to note and add to your first one to two pages.
other sections of your business plan will be easy to note and add to your first one to two pages. other sections of your business plan will be easy to note and add to your first one to two pages.
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Company Summary
Company Summary
Company Summary
The company summary portion of your business plan is an overview of you, who you are, and what you The company summary portion of your business plan is an overview of you, who you are, and what you
The company summary portion of your business plan is an overview of you, who you are, and what you do. This section should summarize your vision in depth and describe what you want to provide to the
do. This section should summarize your vision in depth and describe what you want to provide to the
do. This section should summarize your vision in depth and describe what you want to provide to the market. It should show the reader all of the interesting little facts about your business such as; when the
market. It should show the reader all of the interesting little facts about your business such as; when the
market. It should show the reader all of the interesting little facts about your business such as; when the company was founded, information about the owners, where and how your business is registered and a
company was founded, information about the owners, where and how your business is registered and a
company was founded, information about the owners, where and how your business is registered and a bit about your sales and growth trajectory.
bit about your sales and growth trajectory.
bit about your sales and growth trajectory.
In this section it is important to show your individuality. Show how your business is unique -especially if In this section it is important to show your individuality. Show how your business is unique -especially if
In this section it is important to show your individuality. Show how your business is unique -especially if you’re speaking to investors. You have to sell yourself as much as you do your business. The history, the
you’re speaking to investors. You have to sell yourself as much as you do your business. The history, the
you’re speaking to investors. You have to sell yourself as much as you do your business. The history, the present, and the future matter a lot in this section.
present, and the future matter a lot in this section.
present, and the future matter a lot in this section.
Products and Services
Products and Services
Products and Services
A complete business plan lists and describes the products and services which you provide. Think in A complete business plan lists and describes the products and services which you provide. Think in
A complete business plan lists and describes the products and services which you provide. Think in terms of the customers’ needs and customers benefits when trying to define your product or service
terms of the customers’ needs and customers benefits when trying to define your product or service
terms of the customers’ needs and customers benefits when trying to define your product or service offerings, rather than thinking simply as a business owner.
offerings, rather than thinking simply as a business owner.
offerings, rather than thinking simply as a business owner.
The products and services part of your business plan is mainly descriptive. Some entrepreneurs may The products and services part of your business plan is mainly descriptive. Some entrepreneurs may
The products and services part of your business plan is mainly descriptive. Some entrepreneurs may choose to include tables which provide additional details, but most of the time, this section of the plan
choose to include tables which provide additional details, but most of the time, this section of the plan
choose to include tables which provide additional details, but most of the time, this section of the plan is strictly text.
is strictly text.
is strictly text.
For each of your business offerings, it is important to cover the main points and describe them in detail. For each of your business offerings, it is important to cover the main points and describe them in detail.
For each of your business offerings, it is important to cover the main points and describe them in detail. Ask and answer these questions:
Ask and answer these questions:
Ask and answer these questions:
∙ What is the product or service?
∙ What is the product or service?
∙ What is the product or service?
∙ How much will it cost?
∙ How much will it cost?
∙ How much will it cost?
∙ Who are your customers and why?
∙ Who are your customers and why?
∙ Who are your customers and why?
∙ What need does your product or service fulfill?
∙ What need does your product or service fulfill?
∙ What need does your product or service fulfill?
Again it’s often a good idea to think as a customer rather than just a small business owner focusing on Again it’s often a good idea to think as a customer rather than just a small business owner focusing on
Again it’s often a good idea to think as a customer rather than just a small business owner focusing on the product/service cost and how to deliver the product.
the product/service cost and how to deliver the product.
the product/service cost and how to deliver the product.
Be sure to discuss how your products or services generally compare to others. Why are yours better? Be sure to discuss how your products or services generally compare to others. Why are yours better?
Be sure to discuss how your products or services generally compare to others. Why are yours better? How do you position differently in the market than others?
How do you position differently in the market than others?
How do you position differently in the market than others?
Maybe you don’t have a unique product or service, but you may have other advantages. Let’s say you Maybe you don’t have a unique product or service, but you may have other advantages. Let’s say you
Maybe you don’t have a unique product or service, but you may have other advantages. Let’s say you are starting your own ice cream parlour. A highly competitive industry, however you have no unique
are starting your own ice cream parlour. A highly competitive industry, however you have no unique
are starting your own ice cream parlour. A highly competitive industry, however you have no unique advantage over your competition – same flavors, same idea, same everything.
advantage over your competition – same flavors, same idea, same everything.
advantage over your competition – same flavors, same idea, same everything.
But by going to a potential investor with a presentation that says that, you might as well shoot yourself But by going to a potential investor with a presentation that says that, you might as well shoot yourself
But by going to a potential investor with a presentation that says that, you might as well shoot yourself in the foot and walk out the door with no funding. Instead, think of all potential aspects of why your
in the foot and walk out the door with no funding. Instead, think of all potential aspects of why your
in the foot and walk out the door with no funding. Instead, think of all potential aspects of why your business may be different? Maybe there are similarities, but what if your location is between two
business may be different? Maybe there are similarities, but what if your location is between two
business may be different? Maybe there are similarities, but what if your location is between two schools and close to a sports arena – this may be a big advantage over some of your competition –
schools and close to a sports arena – this may be a big advantage over some of your competition –
schools and close to a sports arena – this may be a big advantage over some of your competition – making your shop unique and with more opportunity.
making your shop unique and with more opportunity.
making your shop unique and with more opportunity.
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In other words, describe the important competitive features of your products and/or services. Do you In other words, describe the important competitive features of your products and/or services. Do you
In other words, describe the important competitive features of your products and/or services. Do you sell better items, have better prices, better quality, better service, are you in a better location – or
sell better items, have better prices, better quality, better service, are you in a better location – or
sell better items, have better prices, better quality, better service, are you in a better location – or anything else you can think of.
anything else you can think of.
anything else you can think of.
Be sure to refer to your SWOT analysis for additional details that may make you unique. Be sure to refer to your SWOT analysis for additional details that may make you unique. Be sure to refer to your SWOT analysis for additional details that may make you unique. Market Analysis Summary
Market Analysis Summary
Market Analysis Summary
No matter if you are writing a business plan for your own management purposes, or for the banks, No matter if you are writing a business plan for your own management purposes, or for the banks,
No matter if you are writing a business plan for your own management purposes, or for the banks, private investors or for the government you should always know your market.
private investors or for the government you should always know your market.
private investors or for the government you should always know your market.
Take a moment here and get into the nitty gritty of your industry. You will need to explain the type of Take a moment here and get into the nitty gritty of your industry. You will need to explain the type of
Take a moment here and get into the nitty gritty of your industry. You will need to explain the type of business you are in. What is the general state of your industry and the nature of your business?
business you are in. What is the general state of your industry and the nature of your business? business you are in. What is the general state of your industry and the nature of your business? Whether you are a service provider, a manufacturer, retailer or something else, you’ll want to make sure Whether you are a service provider, a manufacturer, retailer or something else, you’ll want to make sure
Whether you are a service provider, a manufacturer, retailer or something else, you’ll want to make sure you know your industry inside and out. It is important to know and understand the basics as well as the
you know your industry inside and out. It is important to know and understand the basics as well as the
you know your industry inside and out. It is important to know and understand the basics as well as the more advanced analysis you need to conduct such as:
more advanced analysis you need to conduct such as:
more advanced analysis you need to conduct such as:
∙ Market Segmentation
∙ Market Segmentation
∙ Market Segmentation
∙ Target Market Strategy
∙ Target Market Strategy
∙ Target Market Strategy
∙ Market Needs
∙ Market Needs
∙ Market Needs
∙ Market Trends
∙ Market Trends
∙ Market Trends
∙ Market Growth
∙ Market Growth
∙ Market Growth
∙ In-depth Industry Analysis
∙ In-depth Industry Analysis
∙ In-depth Industry Analysis
∙ Industry Participants
∙ Industry Participants
∙ Industry Participants
∙ Distributions Patterns
∙ Distributions Patterns
∙ Distributions Patterns
∙ Competitive and Buying Patterns
∙ Competitive and Buying Patterns
∙ Competitive and Buying Patterns
∙ Your Main Competitors
∙ Your Main Competitors
∙ Your Main Competitors
Remember that everything in your industry, happening outside of your business will affect your own Remember that everything in your industry, happening outside of your business will affect your own
Remember that everything in your industry, happening outside of your business will affect your own business as well. The more you know and understand about the industry that your business is in, the
business as well. The more you know and understand about the industry that your business is in, the
business as well. The more you know and understand about the industry that your business is in, the more of an advantage you will have.
more of an advantage you will have.
more of an advantage you will have.
A complete business plan will contain all of the main points such as general industry economics, A complete business plan will contain all of the main points such as general industry economics,
A complete business plan will contain all of the main points such as general industry economics, participants, distribution patterns, but also factors in the competition and whatever else that can
participants, distribution patterns, but also factors in the competition and whatever else that can
participants, distribution patterns, but also factors in the competition and whatever else that can describe the nature of your business to outsiders reading your plan.
describe the nature of your business to outsiders reading your plan.
describe the nature of your business to outsiders reading your plan.
You should know who else sells in your market. It’s very difficult to describe a business in detail without You should know who else sells in your market. It’s very difficult to describe a business in detail without
You should know who else sells in your market. It’s very difficult to describe a business in detail without going into details about other participants. Including participants of your industry into your plan can
going into details about other participants. Including participants of your industry into your plan can
going into details about other participants. Including participants of your industry into your plan can make a huge difference.
make a huge difference.
make a huge difference.
But what does industry participants really mean?
But what does industry participants really mean?
But what does industry participants really mean?
In simple terms, its research based on your competition on a general level. Is it a small mom and pop In simple terms, its research based on your competition on a general level. Is it a small mom and pop
In simple terms, its research based on your competition on a general level. Is it a small mom and pop type of operation or is it a global powerhouse such as a McDonalds on every corner. It’s important as it
type of operation or is it a global powerhouse such as a McDonalds on every corner. It’s important as it
type of operation or is it a global powerhouse such as a McDonalds on every corner. It’s important as it will help you understand the competition and the opportunity you have. If you consider opening a
will help you understand the competition and the opportunity you have. If you consider opening a will help you understand the competition and the opportunity you have. If you consider opening awww.CanadaStartups.org 62
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burger joint in an industry that is swamped with corporate restaurants such as McDonald’s, Wendy’s, or burger joint in an industry that is swamped with corporate restaurants such as McDonald’s, Wendy’s, or
burger joint in an industry that is swamped with corporate restaurants such as McDonald’s, Wendy’s, or Burger King, you will face steep competition. However, if you are specializing in a product or service,
Burger King, you will face steep competition. However, if you are specializing in a product or service,
Burger King, you will face steep competition. However, if you are specializing in a product or service, and the only competitors are ones similar to you without much corporate backing, you may have a
and the only competitors are ones similar to you without much corporate backing, you may have a
and the only competitors are ones similar to you without much corporate backing, you may have a fighting chance.
fighting chance.
fighting chance.
Aside from the general idea of your competition, it is highly recommended to conduct an in-depth Aside from the general idea of your competition, it is highly recommended to conduct an in-depth
Aside from the general idea of your competition, it is highly recommended to conduct an in-depth analysis of your main competitors.
analysis of your main competitors.
analysis of your main competitors.
What are the strengths and weaknesses of each of your main competitors?
What are the strengths and weaknesses of each of your main competitors?
What are the strengths and weaknesses of each of your main competitors?
Take into consideration their products, pricing, reputation, management, financial position, channels of Take into consideration their products, pricing, reputation, management, financial position, channels of
Take into consideration their products, pricing, reputation, management, financial position, channels of distribution, branding power, business development, their technology and any other factors that you
distribution, branding power, business development, their technology and any other factors that you
distribution, branding power, business development, their technology and any other factors that you may see as valuable to research into.
may see as valuable to research into.
may see as valuable to research into.
Ask these important questions when doing so:
Ask these important questions when doing so:
Ask these important questions when doing so:
∙ In what segment of the market do each of your competitors operate?
∙ In what segment of the market do each of your competitors operate?
∙ In what segment of the market do each of your competitors operate?
∙ What seems to be your competition’s strategy?
∙ What seems to be your competition’s strategy?
∙ What seems to be your competition’s strategy?
∙ How much of an effect will they have on your products/services?
∙ How much of an effect will they have on your products/services?
∙ How much of an effect will they have on your products/services?
∙ What are some of the threats, and opportunities your competition poses for your business? ∙ What are some of the threats, and opportunities your competition poses for your business? ∙ What are some of the threats, and opportunities your competition poses for your business? Strategy and Implementation Summary
Strategy and Implementation Summary
Strategy and Implementation Summary
Knowing your strategic position for your small business is very important. This section of the business Knowing your strategic position for your small business is very important. This section of the business
Knowing your strategic position for your small business is very important. This section of the business plan is where you would jot down your business strategy as well as your implementation strategy.
plan is where you would jot down your business strategy as well as your implementation strategy. plan is where you would jot down your business strategy as well as your implementation strategy. Your strategy should consist of what you are good at and what you can do for your target market. If you Your strategy should consist of what you are good at and what you can do for your target market. If you
Your strategy should consist of what you are good at and what you can do for your target market. If you have a product or service which fulfills a need or a want, describe it here and use it toward explaining
have a product or service which fulfills a need or a want, describe it here and use it toward explaining
have a product or service which fulfills a need or a want, describe it here and use it toward explaining how you are going to achieve your goal and build a loyal customer base.
how you are going to achieve your goal and build a loyal customer base.
how you are going to achieve your goal and build a loyal customer base.
It is important to be specific in your strategy.
It is important to be specific in your strategy.
It is important to be specific in your strategy.
Be sure to explain your strategy in detail and include important aspects such as how management will Be sure to explain your strategy in detail and include important aspects such as how management will
Be sure to explain your strategy in detail and include important aspects such as how management will ensure that the strategy you set in place is followed and what needs to be done to achieve it. Include
ensure that the strategy you set in place is followed and what needs to be done to achieve it. Include
ensure that the strategy you set in place is followed and what needs to be done to achieve it. Include dates and budgets and be sure that you are tracking your results.
dates and budgets and be sure that you are tracking your results.
dates and budgets and be sure that you are tracking your results.
The strategy you set for your business and to achieve your goals needs to be detailed and clear enough The strategy you set for your business and to achieve your goals needs to be detailed and clear enough
The strategy you set for your business and to achieve your goals needs to be detailed and clear enough that any reader can understand exactly what you plan on doing, what you aim to accomplish and how.
that any reader can understand exactly what you plan on doing, what you aim to accomplish and how. that any reader can understand exactly what you plan on doing, what you aim to accomplish and how. Management Summary
Management Summary
Management Summary
As a business owner, you know what skills you have and the skills required to make your small business As a business owner, you know what skills you have and the skills required to make your small business
As a business owner, you know what skills you have and the skills required to make your small business as success. If you are able to hire employees, and possibly have business partners – it is important to
as success. If you are able to hire employees, and possibly have business partners – it is important to
as success. If you are able to hire employees, and possibly have business partners – it is important to know their skills and experiences. You must know how much it will cost to make your business
know their skills and experiences. You must know how much it will cost to make your business
know their skills and experiences. You must know how much it will cost to make your business successful with those experienced personnel.
successful with those experienced personnel.
successful with those experienced personnel.
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A management summary of your business plan is important as it will provide an explanation of your A management summary of your business plan is important as it will provide an explanation of your
A management summary of your business plan is important as it will provide an explanation of your management team, the management philosophy, backgrounds of your management staff, the
management team, the management philosophy, backgrounds of your management staff, the
management team, the management philosophy, backgrounds of your management staff, the functions of each, and the costs associated with covering your personnel.
functions of each, and the costs associated with covering your personnel.
functions of each, and the costs associated with covering your personnel.
The management summary portion of the plan should summarize exactly that; your management. Be The management summary portion of the plan should summarize exactly that; your management. Be
The management summary portion of the plan should summarize exactly that; your management. Be sure to cover basic information such as; how many employees the company has, plans on having; how
sure to cover basic information such as; how many employees the company has, plans on having; how
sure to cover basic information such as; how many employees the company has, plans on having; how many managers; and how many of those are partners in your business?
many managers; and how many of those are partners in your business?
many managers; and how many of those are partners in your business?
Is your business structure sound? Meaning, does each position have a clear title, job description, Is your business structure sound? Meaning, does each position have a clear title, job description,
Is your business structure sound? Meaning, does each position have a clear title, job description, applicable skills, and responsibilities assigned?
applicable skills, and responsibilities assigned?
applicable skills, and responsibilities assigned?
Is your team complete or are there gaps which need to be filled? When it comes to start-ups, you may Is your team complete or are there gaps which need to be filled? When it comes to start-ups, you may
Is your team complete or are there gaps which need to be filled? When it comes to start-ups, you may only have one or two members on your team, so be sure point out the gaps and weaknesses of your
only have one or two members on your team, so be sure point out the gaps and weaknesses of your
only have one or two members on your team, so be sure point out the gaps and weaknesses of your management team. Discuss a strategy to overcome those weaknesses and show a plan for filling those
management team. Discuss a strategy to overcome those weaknesses and show a plan for filling those
management team. Discuss a strategy to overcome those weaknesses and show a plan for filling those gaps.
gaps.
gaps.
It is important to have a clear explanation of your business structure, especially if you are discussing the It is important to have a clear explanation of your business structure, especially if you are discussing the
It is important to have a clear explanation of your business structure, especially if you are discussing the business plan with possible investors. Your investors want to ensure they are dealing with the decision-
business plan with possible investors. Your investors want to ensure they are dealing with the decision-
business plan with possible investors. Your investors want to ensure they are dealing with the decision- maker for the business, and somebody who can determine the best outcomes for the business.
maker for the business, and somebody who can determine the best outcomes for the business. maker for the business, and somebody who can determine the best outcomes for the business. By showing a clear business structure internally as well as to business investors, it will position you By showing a clear business structure internally as well as to business investors, it will position you
By showing a clear business structure internally as well as to business investors, it will position you better for a successful outcome. If you have a clear picture of what everyone needs to do, you are more
better for a successful outcome. If you have a clear picture of what everyone needs to do, you are more
better for a successful outcome. If you have a clear picture of what everyone needs to do, you are more likely to move forward smoothly.
likely to move forward smoothly.
likely to move forward smoothly.
Financial Plan
Financial Plan
Financial Plan
The last section of your business plan outline, and often considered the hardest to complete is the The last section of your business plan outline, and often considered the hardest to complete is the
The last section of your business plan outline, and often considered the hardest to complete is the financial plan.
financial plan.
financial plan.
Depending on the research you conduct on financial planning for a small businesses, there are various Depending on the research you conduct on financial planning for a small businesses, there are various
Depending on the research you conduct on financial planning for a small businesses, there are various opinions on what a financial plan should include. However, the standard business plan writing outline
opinions on what a financial plan should include. However, the standard business plan writing outline
opinions on what a financial plan should include. However, the standard business plan writing outline suggests the following elements:
suggests the following elements:
suggests the following elements:
∙ Cash Flow Statement
∙ Cash Flow Statement
∙ Cash Flow Statement
∙ Profit and Loss Statement
∙ Profit and Loss Statement
∙ Profit and Loss Statement
∙ Pro-Forma Balance Sheets
∙ Pro-Forma Balance Sheets
∙ Pro-Forma Balance Sheets
∙ Sales Forecasts
∙ Sales Forecasts
∙ Sales Forecasts
∙ Personnel Plan
∙ Personnel Plan
∙ Personnel Plan
∙ Business Ratios
∙ Business Ratios
∙ Business Ratios
∙ Break-Even Analysis
∙ Break-Even Analysis
∙ Break-Even Analysis
∙ Market Forecast
∙ Market Forecast
∙ Market Forecast
Each of these elements are very important, but depending on the purpose of your business plan; some Each of these elements are very important, but depending on the purpose of your business plan; some
Each of these elements are very important, but depending on the purpose of your business plan; some may be more so than others. Remember that you are taking your business plan to potential investors,
may be more so than others. Remember that you are taking your business plan to potential investors,
may be more so than others. Remember that you are taking your business plan to potential investors, the banks, or to the Canadian government for grants and loans funding. All details should be completed
the banks, or to the Canadian government for grants and loans funding. All details should be completed
the banks, or to the Canadian government for grants and loans funding. All details should be completed to the best of your ability and with realistic forecasts backed up with extensive documentation.
to the best of your ability and with realistic forecasts backed up with extensive documentation.
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A cash flow statement is the most integral element of the financial plan. Remember that businesses A cash flow statement is the most integral element of the financial plan. Remember that businesses
A cash flow statement is the most integral element of the financial plan. Remember that businesses run on cash, and no business plan is complete without a cash flow plan.
run on cash, and no business plan is complete without a cash flow plan.
run on cash, and no business plan is complete without a cash flow plan.
Most business owners utilize this equation: sales, minus costs and expenses, equals profits – but most Most business owners utilize this equation: sales, minus costs and expenses, equals profits – but most
Most business owners utilize this equation: sales, minus costs and expenses, equals profits – but most forget that we have to manage the cash as well.
forget that we have to manage the cash as well.
forget that we have to manage the cash as well.
Cash is critical. However, business owners think about profits first instead of cash. We all do, it’s just in Cash is critical. However, business owners think about profits first instead of cash. We all do, it’s just in
Cash is critical. However, business owners think about profits first instead of cash. We all do, it’s just in our nature. When you think of a new business starting up your mind is trained to think what the cost of
our nature. When you think of a new business starting up your mind is trained to think what the cost of
our nature. When you think of a new business starting up your mind is trained to think what the cost of your product will be, what your expenses will be, and once selling, what will be left over as profit.
your product will be, what your expenses will be, and once selling, what will be left over as profit.
your product will be, what your expenses will be, and once selling, what will be left over as profit. Unfortunately, we don’t spend the profits in a business – we spend cash.
Unfortunately, we don’t spend the profits in a business – we spend cash.
Unfortunately, we don’t spend the profits in a business – we spend cash.
Many profitable companies go broke and fail due to bad cash flow management. Having money tied up Many profitable companies go broke and fail due to bad cash flow management. Having money tied up
Many profitable companies go broke and fail due to bad cash flow management. Having money tied up in assets, or waiting for cash to come in can hurt your business if you don’t have enough working cash
in assets, or waiting for cash to come in can hurt your business if you don’t have enough working cash
in assets, or waiting for cash to come in can hurt your business if you don’t have enough working cash stored away in the business.
stored away in the business.
stored away in the business.
Next we have a profit and loss statement which incorporates sales, cost of sales, operating expenses Next we have a profit and loss statement which incorporates sales, cost of sales, operating expenses
Next we have a profit and loss statement which incorporates sales, cost of sales, operating expenses and profits all into one summary. A P&L statement is also a pro forma income statement. A simple
and profits all into one summary. A P&L statement is also a pro forma income statement. A simple
and profits all into one summary. A P&L statement is also a pro forma income statement. A simple calculation to figure out the bottom line is (Revenue – Expenses = Net Income).
calculation to figure out the bottom line is (Revenue – Expenses = Net Income).
calculation to figure out the bottom line is (Revenue – Expenses = Net Income).
The income statement, or profit and loss statement is very informative for a business as this is where The income statement, or profit and loss statement is very informative for a business as this is where
The income statement, or profit and loss statement is very informative for a business as this is where you capture everything-all of your numbers; the money coming in, the money going out, and where you
you capture everything-all of your numbers; the money coming in, the money going out, and where you
you capture everything-all of your numbers; the money coming in, the money going out, and where you are losing or making money.
are losing or making money.
are losing or making money.
It is recommended to review your profit and loss statement regularly and before presenting your plan It is recommended to review your profit and loss statement regularly and before presenting your plan
It is recommended to review your profit and loss statement regularly and before presenting your plan to the banks, the government, or private investors. Upon each review, consider the following:
to the banks, the government, or private investors. Upon each review, consider the following: to the banks, the government, or private investors. Upon each review, consider the following: ∙ Find the bottom line
∙ Find the bottom line
∙ Find the bottom line
∙ Look for the sources of your income
∙ Look for the sources of your income
∙ Look for the sources of your income
∙ Look at your expenses categories
∙ Look at your expenses categories
∙ Look at your expenses categories
∙ Look at the amounts- are you overspending?
∙ Look at the amounts- are you overspending?
∙ Look at the amounts- are you overspending?
∙ Compare month to month or year over year numbers
∙ Compare month to month or year over year numbers
∙ Compare month to month or year over year numbers
∙ Stop and think about it
∙ Stop and think about it
∙ Stop and think about it
Next on the list is the balance sheet. Aside from cash and income, there is the balance of assets, Next on the list is the balance sheet. Aside from cash and income, there is the balance of assets,
Next on the list is the balance sheet. Aside from cash and income, there is the balance of assets, liabilities and capital.
liabilities and capital.
liabilities and capital.
The balance sheet provides a clear snapshot of your business’ financial condition right now. It lists all of The balance sheet provides a clear snapshot of your business’ financial condition right now. It lists all of
The balance sheet provides a clear snapshot of your business’ financial condition right now. It lists all of the company owned assets, its liabilities, and the owners’ equity all in one document. Simply by
the company owned assets, its liabilities, and the owners’ equity all in one document. Simply by
the company owned assets, its liabilities, and the owners’ equity all in one document. Simply by subtracting your liabilities from your assets, you can determine the company’s net worth at any given
subtracting your liabilities from your assets, you can determine the company’s net worth at any given
subtracting your liabilities from your assets, you can determine the company’s net worth at any given time.
time.
time.
The balance sheet is divided into three main parts:
The balance sheet is divided into three main parts:
The balance sheet is divided into three main parts:
∙ Assets – assets are those that can be converted into cash within one year. These typically ∙ Assets – assets are those that can be converted into cash within one year. These typically
∙ Assets – assets are those that can be converted into cash within one year. These typically include cash, stocks, accounts receivable, prepaid expenses, and your inventory.
include cash, stocks, accounts receivable, prepaid expenses, and your inventory.
include cash, stocks, accounts receivable, prepaid expenses, and your inventory.
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∙ Liabilities – your current liabilities are your debts. These debts are the obligations which you ∙ Liabilities – your current liabilities are your debts. These debts are the obligations which you
∙ Liabilities – your current liabilities are your debts. These debts are the obligations which you owe and are due within one year.
owe and are due within one year.
owe and are due within one year.
∙ Owners’ Equity – owners’ equity is the sum of all of the shareholders money that is invested ∙ Owners’ Equity – owners’ equity is the sum of all of the shareholders money that is invested
∙ Owners’ Equity – owners’ equity is the sum of all of the shareholders money that is invested into the business along with the accumulated business profits.
into the business along with the accumulated business profits.
into the business along with the accumulated business profits.
The next step of your financial plan is the sales forecast.
The next step of your financial plan is the sales forecast.
The next step of your financial plan is the sales forecast.
Developing your sales forecast isn’t as hard as most people think. It is recommended to think of your Developing your sales forecast isn’t as hard as most people think. It is recommended to think of your
Developing your sales forecast isn’t as hard as most people think. It is recommended to think of your sales forecast for your business as a well educated guess. If you’ve conducted your research of the
sales forecast for your business as a well educated guess. If you’ve conducted your research of the
sales forecast for your business as a well educated guess. If you’ve conducted your research of the industry, the market, and your competition, you should be able to make that well educated guess and
industry, the market, and your competition, you should be able to make that well educated guess and
industry, the market, and your competition, you should be able to make that well educated guess and be pretty certain about it.
be pretty certain about it.
be pretty certain about it.
If you are a new start-up business, try to break the sales forecast down into more manageable parts If you are a new start-up business, try to break the sales forecast down into more manageable parts
If you are a new start-up business, try to break the sales forecast down into more manageable parts such as going line by line with your sales, or month by month adding it all up at the end.
such as going line by line with your sales, or month by month adding it all up at the end. such as going line by line with your sales, or month by month adding it all up at the end. If you are having difficulty, it’s recommended to get assistance from an expert or possibly an If you are having difficulty, it’s recommended to get assistance from an expert or possibly an
If you are having difficulty, it’s recommended to get assistance from an expert or possibly an accountant who can work with you to build the sales forecast.
accountant who can work with you to build the sales forecast.
accountant who can work with you to build the sales forecast.
As it is a major point investors look to, sales forecasting shouldn’t be skipped over. It is better to make As it is a major point investors look to, sales forecasting shouldn’t be skipped over. It is better to make
As it is a major point investors look to, sales forecasting shouldn’t be skipped over. It is better to make an educated estimate backed by documentation from your research, and aim to achieve it, as opposed
an educated estimate backed by documentation from your research, and aim to achieve it, as opposed
an educated estimate backed by documentation from your research, and aim to achieve it, as opposed to not providing any forecast at all. Missing crucial info like a sales forecast can make you seem
to not providing any forecast at all. Missing crucial info like a sales forecast can make you seem
to not providing any forecast at all. Missing crucial info like a sales forecast can make you seem unknowledgeable and unprepared, forcing investors to reject you.
unknowledgeable and unprepared, forcing investors to reject you.
unknowledgeable and unprepared, forcing investors to reject you.
Following the sales forecast, we have the personnel plan. In the personnel plan section of your financial Following the sales forecast, we have the personnel plan. In the personnel plan section of your financial
Following the sales forecast, we have the personnel plan. In the personnel plan section of your financial plan we have the cost associated with your staff and employees. Personnel costs are so intimately
plan we have the cost associated with your staff and employees. Personnel costs are so intimately
plan we have the cost associated with your staff and employees. Personnel costs are so intimately related to fixed costs that they should be set aside and discussed in detail. In some business plans, they
related to fixed costs that they should be set aside and discussed in detail. In some business plans, they
related to fixed costs that they should be set aside and discussed in detail. In some business plans, they too, like the sales forecast can be just a line or two on the income statement.
too, like the sales forecast can be just a line or two on the income statement.
too, like the sales forecast can be just a line or two on the income statement.
The business ratios portion of your financial plan are the ratios calculated with the numbers from the The business ratios portion of your financial plan are the ratios calculated with the numbers from the
The business ratios portion of your financial plan are the ratios calculated with the numbers from the pro forma income, cash flow, and balance sheets.
pro forma income, cash flow, and balance sheets.
pro forma income, cash flow, and balance sheets.
Business ratios aren’t always necessary for your personal internal plan, however it is something bankers, Business ratios aren’t always necessary for your personal internal plan, however it is something bankers,
Business ratios aren’t always necessary for your personal internal plan, however it is something bankers, investors and the government funding agencies may ask you for. These ratios often include numbers
investors and the government funding agencies may ask you for. These ratios often include numbers
investors and the government funding agencies may ask you for. These ratios often include numbers such as gross margin, return on sales, return on assets, and an investor’s favorite – the return on
such as gross margin, return on sales, return on assets, and an investor’s favorite – the return on
such as gross margin, return on sales, return on assets, and an investor’s favorite – the return on investment.
investment.
investment.
Other ratios to keep in mind are the debt to equity, current ratio, and working capital. Other ratios to keep in mind are the debt to equity, current ratio, and working capital. Other ratios to keep in mind are the debt to equity, current ratio, and working capital. As these exercises can get a bit complicated, it’s recommended to research further into each ratio and
As these exercises can get a bit complicated, it’s recommended to research further into each ratio and
As these exercises can get a bit complicated, it’s recommended to research further into each ratio and how best to calculate them. You can also work with an accountant to give you the most accurate help
how best to calculate them. You can also work with an accountant to give you the most accurate help
how best to calculate them. You can also work with an accountant to give you the most accurate help for your unique business.
for your unique business.
for your unique business.
Another important component of a financial plan is the break-even analysis. A break-even analysis Another important component of a financial plan is the break-even analysis. A break-even analysis
Another important component of a financial plan is the break-even analysis. A break-even analysis looks at the amount of money you make, compared to the amount of money you spend, and calculates
looks at the amount of money you make, compared to the amount of money you spend, and calculates
looks at the amount of money you make, compared to the amount of money you spend, and calculates the amount of money you have to obtain in order to be at $0 – meaning no loss or no profit. This is a
the amount of money you have to obtain in order to be at $0 – meaning no loss or no profit. This is a
the amount of money you have to obtain in order to be at $0 – meaning no loss or no profit. This is a benchmark that you have to maintain in order not to win or lose.
benchmark that you have to maintain in order not to win or lose.
benchmark that you have to maintain in order not to win or lose.
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In even simpler terms, a break-even analysis determines what you need to sell to cover your costs of In even simpler terms, a break-even analysis determines what you need to sell to cover your costs of
In even simpler terms, a break-even analysis determines what you need to sell to cover your costs of doing business – whether that number is calculated per day, per month, or per year.
doing business – whether that number is calculated per day, per month, or per year. doing business – whether that number is calculated per day, per month, or per year. The final portion of the financial plan is the market forecast section. While very similar to the sales The final portion of the financial plan is the market forecast section. While very similar to the sales
The final portion of the financial plan is the market forecast section. While very similar to the sales forecast; a market forecast can give you and your potential investors a picture of the future and your
forecast; a market forecast can give you and your potential investors a picture of the future and your
forecast; a market forecast can give you and your potential investors a picture of the future and your business growth.
business growth.
business growth.
Again, you are the expert in the field of your business and your industry. With all of the research you’ve Again, you are the expert in the field of your business and your industry. With all of the research you’ve
Again, you are the expert in the field of your business and your industry. With all of the research you’ve conducted, you can see the potential market opportunity, and you are able to estimate the potential
conducted, you can see the potential market opportunity, and you are able to estimate the potential
conducted, you can see the potential market opportunity, and you are able to estimate the potential growth of your business in that market.
growth of your business in that market.
growth of your business in that market.
Think of it this way-if your main product is providing residential cleaning services in one city, you can Think of it this way-if your main product is providing residential cleaning services in one city, you can
Think of it this way-if your main product is providing residential cleaning services in one city, you can plan expansion into other cities to increase your sales forecast. If geographic expansion isn’t an option,
plan expansion into other cities to increase your sales forecast. If geographic expansion isn’t an option,
plan expansion into other cities to increase your sales forecast. If geographic expansion isn’t an option, offering commercial cleaning services may be possible and you can expand into somewhat of a new
offering commercial cleaning services may be possible and you can expand into somewhat of a new
offering commercial cleaning services may be possible and you can expand into somewhat of a new market. The possibilities are endless.
market. The possibilities are endless.
market. The possibilities are endless.
You, as the expert in your business and in your field should be able to accurately estimate the You, as the expert in your business and in your field should be able to accurately estimate the
You, as the expert in your business and in your field should be able to accurately estimate the opportunity in your market and forecast the potential for growth.
opportunity in your market and forecast the potential for growth.
opportunity in your market and forecast the potential for growth.
With that, we have concluded summarizing the main components of a simple business plan outline. As With that, we have concluded summarizing the main components of a simple business plan outline. As
With that, we have concluded summarizing the main components of a simple business plan outline. As mentioned, as long as you include the main components and answer the required questions, feel free to
mentioned, as long as you include the main components and answer the required questions, feel free to
mentioned, as long as you include the main components and answer the required questions, feel free to alter the layout as you see fit.
alter the layout as you see fit.
alter the layout as you see fit.
If you are interested in a more detailed version of a business plan outline consider the following If you are interested in a more detailed version of a business plan outline consider the following
If you are interested in a more detailed version of a business plan outline consider the following advanced business plan outline:
advanced business plan outline:
advanced business plan outline:
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Small Business Startup Guide Small Business Startup Guide Small Business Startup Guide
Executive Summary
Executive Summary
Executive Summary
∙ Objectives
∙ Objectives
∙ Objectives
∙ Mission
∙ Mission
∙ Mission
∙ Keys to Success
∙ Keys to Success
∙ Keys to Success
Company Summary
Company Summary
Company Summary
∙ Company Ownership
∙ Company Ownership
∙ Company Ownership
∙ Company History- for ongoing ∙ Company History- for ongoing
∙ Company History- for ongoing companies
companies
companies
∙ Start-up Plan -for new companies ∙ Start-up Plan -for new companies
∙ Start-up Plan -for new companies ∙ Company Locations and Facilities
∙ Company Locations and Facilities ∙ Company Locations and Facilities Products and Services
Products and Services
Products and Services
∙ Product and Service Description ∙ Product and Service Description
∙ Product and Service Description ∙ Competitive Comparison
∙ Competitive Comparison
∙ Competitive Comparison ∙ Sales Literature
∙ Sales Literature
∙ Sales Literature
Sourcing and Fulfillment
Sourcing and Fulfillment
Sourcing and Fulfillment
∙ Technology
∙ Technology
∙ Technology
∙ Future Products and Services ∙ Future Products and Services ∙ Future Products and Services Market Analysis Summary
Market Analysis Summary
Market Analysis Summary
∙ Market Segmentation
∙ Market Segmentation
∙ Market Segmentation
∙ Target Market Segment Strategy ∙ Target Market Segment Strategy
∙ Target Market Segment Strategy ∙ Market Needs
∙ Market Needs
∙ Market Needs
∙ Market Trends
∙ Market Trends
∙ Market Trends
∙ Market Growth
∙ Market Growth
∙ Market Growth
∙ Industry Analysis
∙ Industry Analysis
∙ Industry Analysis
∙ Industry Participants
∙ Industry Participants
∙ Industry Participants
∙ Distribution Patterns
∙ Distribution Patterns
∙ Distribution Patterns
∙ Competition and Buying Patterns ∙ Competition and Buying Patterns
∙ Competition and Buying Patterns ∙ Main Competitors
∙ Main Competitors
∙ Main Competitors
Strategy and Implementation Summary Strategy and Implementation Summary Strategy and Implementation Summary ∙ Strategy Pyramids
∙ Strategy Pyramids
∙ Strategy Pyramids
∙ Value Proposition
∙ Value Proposition
∙ Value Proposition
∙ Competitive Edge
∙ Competitive Edge
∙ Competitive Edge
∙ Marketing Strategy
∙ Marketing Strategy
∙ Marketing Strategy
∙ Positioning Statements
∙ Positioning Statements
∙ Positioning Statements

∙ Pricing Strategy
∙ Pricing Strategy
∙ Pricing Strategy
∙ Promotion Strategy ∙ Promotion Strategy
∙ Promotion Strategy ∙ Distribution Patterns
∙ Distribution Patterns
∙ Distribution Patterns ∙ Marketing Programs
∙ Marketing Programs
∙ Marketing Programs
∙ Sales Strategy
∙ Sales Strategy
∙ Sales Strategy
∙ Sales Forecast
∙ Sales Forecast
∙ Sales Forecast
∙ Sales Programs
∙ Sales Programs
∙ Sales Programs
∙ Strategic Alliances
∙ Strategic Alliances
∙ Strategic Alliances
∙ Milestones
∙ Milestones
∙ Milestones
Management Summary Management Summary Management Summary
∙ Organizational Structure ∙ Organizational Structure
∙ Organizational Structure ∙ Management Team
∙ Management Team
∙ Management Team ∙ Management Team Gaps
∙ Management Team Gaps
∙ Management Team Gaps ∙ Personnel Plan
∙ Personnel Plan
∙ Personnel Plan
Financial Plan
Financial Plan
Financial Plan
∙ Important Assumptions ∙ Important Assumptions
∙ Important Assumptions ∙ Key Financial Indicators
∙ Key Financial Indicators
∙ Key Financial Indicators ∙ Break-even Analysis
∙ Break-even Analysis
∙ Break-even Analysis
∙ Projected Profit and Loss ∙ Projected Profit and Loss
∙ Projected Profit and Loss ∙ Projected Cash Flow
∙ Projected Cash Flow
∙ Projected Cash Flow ∙ Projected Balance Sheet
∙ Projected Balance Sheet
∙ Projected Balance Sheet ∙ Business Ratios
∙ Business Ratios
∙ Business Ratios
∙ Long-term Plan
∙ Long-term Plan
∙ Long-term Plan
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Small Business Startup Guide
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Small Business Startup Guide
Appendix
Appendix
Appendix
The longer in-depth version of the business plan outline includes the same components but breaks The longer in-depth version of the business plan outline includes the same components but breaks
The longer in-depth version of the business plan outline includes the same components but breaks down the various sections to help more easily organize your writing tasks. Follow this outline step by
down the various sections to help more easily organize your writing tasks. Follow this outline step by
down the various sections to help more easily organize your writing tasks. Follow this outline step by step to ensure a professionally written and all-inclusive business plan for internal purposes or to present
step to ensure a professionally written and all-inclusive business plan for internal purposes or to present
step to ensure a professionally written and all-inclusive business plan for internal purposes or to present for potential funding from banks, investors or the government.
for potential funding from banks, investors or the government.
for potential funding from banks, investors or the government.
Review sample business plans, use the business plan template provided, and be sure to get familiar with Review sample business plans, use the business plan template provided, and be sure to get familiar with
Review sample business plans, use the business plan template provided, and be sure to get familiar with your business plan writing FAQ’s before proceeding to write your own.
your business plan writing FAQ’s before proceeding to write your own.
your business plan writing FAQ’s before proceeding to write your own.
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12. FINANCING FOR YOUR SMALL BUSINESS 12. FINANCING FOR YOUR SMALL BUSINESS 12. FINANCING FOR YOUR SMALL BUSINESS If you are planning on starting a small business in Canada, chances are you’ll need some form of capital.
If you are planning on starting a small business in Canada, chances are you’ll need some form of capital.
If you are planning on starting a small business in Canada, chances are you’ll need some form of capital. The term capital simply refers to the money that helps finance our business.
The term capital simply refers to the money that helps finance our business.
The term capital simply refers to the money that helps finance our business.
As we know, one of the main reasons why so many small businesses fail is due to a lack of funding or As we know, one of the main reasons why so many small businesses fail is due to a lack of funding or
As we know, one of the main reasons why so many small businesses fail is due to a lack of funding or control of funds. Therefore, it is very important to know how much money you will need to not only get
control of funds. Therefore, it is very important to know how much money you will need to not only get
control of funds. Therefore, it is very important to know how much money you will need to not only get started with your small business, but to run it day to day, and to grow.
started with your small business, but to run it day to day, and to grow.
started with your small business, but to run it day to day, and to grow.
Some key questions you should ask yourself before looking for financing for your small business are: Some key questions you should ask yourself before looking for financing for your small business are: Some key questions you should ask yourself before looking for financing for your small business are: ∙ How much money is required to start your business?
∙ How much money is required to start your business?
∙ How much money is required to start your business?
∙ How much of your own money do you have to invest into the business?
∙ How much of your own money do you have to invest into the business?
∙ How much of your own money do you have to invest into the business?
∙ Do you have the assets needed to start, or do you need to purchase assets to start your ∙ Do you have the assets needed to start, or do you need to purchase assets to start your
∙ Do you have the assets needed to start, or do you need to purchase assets to start your business?
business?
business?
∙ Can your family, friends or others who are willing, help you invest in your business? ∙ Can your family, friends or others who are willing, help you invest in your business?
∙ Can your family, friends or others who are willing, help you invest in your business? ∙ What kind of credit score do you have and what available lines of credit do you have?
∙ What kind of credit score do you have and what available lines of credit do you have? ∙ What kind of credit score do you have and what available lines of credit do you have? Knowing how much money you need to start and operate your small business will help you figure out if Knowing how much money you need to start and operate your small business will help you figure out if
Knowing how much money you need to start and operate your small business will help you figure out if you have enough- whether it’s from personal investments, borrowed from friends or family, or from
you have enough- whether it’s from personal investments, borrowed from friends or family, or from
you have enough- whether it’s from personal investments, borrowed from friends or family, or from banks, the government and private investors.
banks, the government and private investors.
banks, the government and private investors.
Finding financing in any economic climate is very challenging. Preparing for this part of starting up your Finding financing in any economic climate is very challenging. Preparing for this part of starting up your
Finding financing in any economic climate is very challenging. Preparing for this part of starting up your small business is key to its success or failure.
small business is key to its success or failure.
small business is key to its success or failure.
Since so many small business owners skip or falter at this stage, it will determine the outcome of the Since so many small business owners skip or falter at this stage, it will determine the outcome of the
Since so many small business owners skip or falter at this stage, it will determine the outcome of the business fairly quickly thereafter.
business fairly quickly thereafter.
business fairly quickly thereafter.
When you are lacking capital in your business there is only one way to go. Be sure to plan ahead and When you are lacking capital in your business there is only one way to go. Be sure to plan ahead and
When you are lacking capital in your business there is only one way to go. Be sure to plan ahead and consider all of your possible financing and funding options to get money moving into your business
consider all of your possible financing and funding options to get money moving into your business
consider all of your possible financing and funding options to get money moving into your business when you need it.
when you need it.
when you need it.
Your opportunities to obtain financing/funding are divided into three main groups:
Your opportunities to obtain financing/funding are divided into three main groups:
Your opportunities to obtain financing/funding are divided into three main groups:
∙ Personal Financing
∙ Personal Financing
∙ Personal Financing
∙ Private Sector Financing
∙ Private Sector Financing
∙ Private Sector Financing
∙ Government Financing
∙ Government Financing
∙ Government Financing
Before going down this road, it is important to have answers for the questions asked above. Simply Before going down this road, it is important to have answers for the questions asked above. Simply
Before going down this road, it is important to have answers for the questions asked above. Simply knowing how much money you need to start and run your business will help you determine how much
knowing how much money you need to start and run your business will help you determine how much
knowing how much money you need to start and run your business will help you determine how much you need to invest or to borrow.
you need to invest or to borrow.
you need to invest or to borrow.
Keep in mind that underestimating how much you need to startup and run your small business could Keep in mind that underestimating how much you need to startup and run your small business could
Keep in mind that underestimating how much you need to startup and run your small business could sabotage the whole operation pretty fast. At the same time, over investing into your business could
sabotage the whole operation pretty fast. At the same time, over investing into your business could
sabotage the whole operation pretty fast. At the same time, over investing into your business could have negative consequences as well. While it’s great to have more money than you need in your
have negative consequences as well. While it’s great to have more money than you need in your
have negative consequences as well. While it’s great to have more money than you need in your business, it all depends where that money is coming from
business, it all depends where that money is coming from
business, it all depends where that money is coming from
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If you invest your personal money into the business, fine. However if you are borrowing money that you If you invest your personal money into the business, fine. However if you are borrowing money that you
If you invest your personal money into the business, fine. However if you are borrowing money that you may not need past a certain amount, this could hurt your business. Remember that you have to make
may not need past a certain amount, this could hurt your business. Remember that you have to make
may not need past a certain amount, this could hurt your business. Remember that you have to make payments on borrowed money – usually interest payments or some sort of return to private investors. If
payments on borrowed money – usually interest payments or some sort of return to private investors. If
payments on borrowed money – usually interest payments or some sort of return to private investors. If you aren’t actively using the money- just keeping it in case you run into an issue – these payments are
you aren’t actively using the money- just keeping it in case you run into an issue – these payments are
you aren’t actively using the money- just keeping it in case you run into an issue – these payments are still required and this could hurt your cash flow.
still required and this could hurt your cash flow.
still required and this could hurt your cash flow.
It is important to know exactly how much money you need. Know how much money you need to It is important to know exactly how much money you need. Know how much money you need to
It is important to know exactly how much money you need. Know how much money you need to operate day to day. Know how much you need to have saved in case of emergencies. Know these
operate day to day. Know how much you need to have saved in case of emergencies. Know these
operate day to day. Know how much you need to have saved in case of emergencies. Know these amounts and only invest or borrow that much. While being able to get more is great, it’s better to know
amounts and only invest or borrow that much. While being able to get more is great, it’s better to know
amounts and only invest or borrow that much. While being able to get more is great, it’s better to know you have access to it, rather than physically taking the money.
you have access to it, rather than physically taking the money.
you have access to it, rather than physically taking the money.
The three main methods of obtaining financing are personal, government and private. Which one is The three main methods of obtaining financing are personal, government and private. Which one is
The three main methods of obtaining financing are personal, government and private. Which one is right for you?
right for you?
right for you?
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Small Business Startup Guide
13.PERSONAL FINANCING
13.PERSONAL FINANCING
13.PERSONAL FINANCING
It may seem that you are borrowing money from yourself when it comes to personal financing. It means It may seem that you are borrowing money from yourself when it comes to personal financing. It means
It may seem that you are borrowing money from yourself when it comes to personal financing. It means that you are simply using yourself as a source or lender.
that you are simply using yourself as a source or lender.
that you are simply using yourself as a source or lender.
Does it mean that you are borrowing money from yourself? The answer is both yes and no. Does it mean that you are borrowing money from yourself? The answer is both yes and no. Does it mean that you are borrowing money from yourself? The answer is both yes and no. When it comes to personal financing, there are a number of ways to obtain financing for your small
When it comes to personal financing, there are a number of ways to obtain financing for your small
When it comes to personal financing, there are a number of ways to obtain financing for your small business startup:
business startup:
business startup:
∙ Personal Savings
∙ Personal Savings
∙ Personal Savings
∙ Personal Credit Cards
∙ Personal Credit Cards
∙ Personal Credit Cards
∙ Personal Lines of Credit / Loans
∙ Personal Lines of Credit / Loans
∙ Personal Lines of Credit / Loans
∙ Through Personal Assets
∙ Through Personal Assets
∙ Through Personal Assets
∙ Through Family and Friends
∙ Through Family and Friends
∙ Through Family and Friends
∙ Business Partners
∙ Business Partners
∙ Business Partners
Whichever way you look at it- whether it’s you or somebody else putting money into the business– it is Whichever way you look at it- whether it’s you or somebody else putting money into the business– it is
Whichever way you look at it- whether it’s you or somebody else putting money into the business– it is a business investment. When dealing with personal financing options, you get to determine how much
a business investment. When dealing with personal financing options, you get to determine how much
a business investment. When dealing with personal financing options, you get to determine how much or how little you put into your business.
or how little you put into your business.
or how little you put into your business.
When starting your small business in Canada, you will likely obtain a large chunk of the capital needed When starting your small business in Canada, you will likely obtain a large chunk of the capital needed
When starting your small business in Canada, you will likely obtain a large chunk of the capital needed to get started from personal savings, family/friends, or from multiple sources in the personal financing
to get started from personal savings, family/friends, or from multiple sources in the personal financing
to get started from personal savings, family/friends, or from multiple sources in the personal financing options previously mentioned. In fact, according to Stats Canada – 76% of small businesses find the
options previously mentioned. In fact, according to Stats Canada – 76% of small businesses find the
options previously mentioned. In fact, according to Stats Canada – 76% of small businesses find the capital they need through personal financing.
capital they need through personal financing.
capital they need through personal financing.
While it is good news f you are able to fully fund your own business 100%, it is not recommended. While it is good news f you are able to fully fund your own business 100%, it is not recommended.
While it is good news f you are able to fully fund your own business 100%, it is not recommended. Instead, aim to fund approximately 25% to 50% of your business out of your own pocket. By doing so,
Instead, aim to fund approximately 25% to 50% of your business out of your own pocket. By doing so,
Instead, aim to fund approximately 25% to 50% of your business out of your own pocket. By doing so, you are keeping some personal money out of the business but still showing potential lenders and
you are keeping some personal money out of the business but still showing potential lenders and
you are keeping some personal money out of the business but still showing potential lenders and investors that you are personally assuming some of the risk in the business. You appear committed.
investors that you are personally assuming some of the risk in the business. You appear committed.
investors that you are personally assuming some of the risk in the business. You appear committed. Think of it this way, if you are asking a family member to lend you money to start your business, but are
Think of it this way, if you are asking a family member to lend you money to start your business, but are
Think of it this way, if you are asking a family member to lend you money to start your business, but are unwilling to put in any of your own, this is going to raise some red flags. If a family member wouldn’t be
unwilling to put in any of your own, this is going to raise some red flags. If a family member wouldn’t be
unwilling to put in any of your own, this is going to raise some red flags. If a family member wouldn’t be interested in this arrangement, can you imagine why a serious business investor would be?
interested in this arrangement, can you imagine why a serious business investor would be? interested in this arrangement, can you imagine why a serious business investor would be? Personal Savings are usually the first pot of money small business entrepreneurs draw from for their Personal Savings are usually the first pot of money small business entrepreneurs draw from for their
Personal Savings are usually the first pot of money small business entrepreneurs draw from for their business venture. Why? It’s the easiest and seems to have the least risk involved. Maybe this is exactly
business venture. Why? It’s the easiest and seems to have the least risk involved. Maybe this is exactly
business venture. Why? It’s the easiest and seems to have the least risk involved. Maybe this is exactly what you have been saving for?
what you have been saving for?
what you have been saving for?
Personal savings are great to use for investment into your business. At the same time, you must be Personal savings are great to use for investment into your business. At the same time, you must be
Personal savings are great to use for investment into your business. At the same time, you must be careful as to how much of your personal savings you invest and how much you keep in your savings
careful as to how much of your personal savings you invest and how much you keep in your savings
careful as to how much of your personal savings you invest and how much you keep in your savings accounts.
accounts.
accounts.
One issue that often arises for startup small business entrepreneurs is that they take all of their hard One issue that often arises for startup small business entrepreneurs is that they take all of their hard
One issue that often arises for startup small business entrepreneurs is that they take all of their hard earned savings and invest it into their business in the startup stages. During this stage of business
earned savings and invest it into their business in the startup stages. During this stage of business
earned savings and invest it into their business in the startup stages. During this stage of business profits aren’t being seen just yet. And since the business isn’t making money, the savings are depleted.
profits aren’t being seen just yet. And since the business isn’t making money, the savings are depleted. profits aren’t being seen just yet. And since the business isn’t making money, the savings are depleted.www.CanadaStartups.org 72
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You as the main investor may feel discouraged, make bad decisions, and start borrowing massive You as the main investor may feel discouraged, make bad decisions, and start borrowing massive
You as the main investor may feel discouraged, make bad decisions, and start borrowing massive amounts of money which you may not be able to pay back.
amounts of money which you may not be able to pay back.
amounts of money which you may not be able to pay back.
Remember that your personal life plays a huge role in ensuring your small business succeeds. If you as Remember that your personal life plays a huge role in ensuring your small business succeeds. If you as
Remember that your personal life plays a huge role in ensuring your small business succeeds. If you as the small business owner is stressed, worried, and distracted, you aren’t able to make the best decisions
the small business owner is stressed, worried, and distracted, you aren’t able to make the best decisions
the small business owner is stressed, worried, and distracted, you aren’t able to make the best decisions for your business.
for your business.
for your business.
Personal Credit Cards is the next financial source most small business owners turn to when in need of Personal Credit Cards is the next financial source most small business owners turn to when in need of
Personal Credit Cards is the next financial source most small business owners turn to when in need of quick capital influx.
quick capital influx.
quick capital influx.
Most people already have credit cards which means that you don’t need to go out of your way to see if Most people already have credit cards which means that you don’t need to go out of your way to see if
Most people already have credit cards which means that you don’t need to go out of your way to see if you can obtain a business loan, or a business credit card just yet. You can start using the funds available
you can obtain a business loan, or a business credit card just yet. You can start using the funds available
you can obtain a business loan, or a business credit card just yet. You can start using the funds available on your credit card to pay for those small expenses for your business.
on your credit card to pay for those small expenses for your business.
on your credit card to pay for those small expenses for your business.
While doing so is fine, there are a number of factors you must consider when using your personal credit While doing so is fine, there are a number of factors you must consider when using your personal credit
While doing so is fine, there are a number of factors you must consider when using your personal credit cards as a form of financial investment into your business:
cards as a form of financial investment into your business:
cards as a form of financial investment into your business:
∙ What is your spending limit?
∙ What is your spending limit?
∙ What is your spending limit?
∙ What is the interest rate?
∙ What is the interest rate?
∙ What is the interest rate?
∙ When are your payments due?
∙ When are your payments due?
∙ When are your payments due?
∙ What are the fees and international conversion rates?
∙ What are the fees and international conversion rates?
∙ What are the fees and international conversion rates?
∙ Are you able to collect points or obtain a % return on purchases?
∙ Are you able to collect points or obtain a % return on purchases?
∙ Are you able to collect points or obtain a % return on purchases?
All these factors play a serious role in ensuring you don’t go into debt because of your credit card All these factors play a serious role in ensuring you don’t go into debt because of your credit card
All these factors play a serious role in ensuring you don’t go into debt because of your credit card charges.
charges.
charges.
Know your spending limit and how much you are able to borrow on your card. This will ensure you keep Know your spending limit and how much you are able to borrow on your card. This will ensure you keep
Know your spending limit and how much you are able to borrow on your card. This will ensure you keep in line with how much is available. Overspending on a credit card can add hefty charges to your bill.
in line with how much is available. Overspending on a credit card can add hefty charges to your bill.
in line with how much is available. Overspending on a credit card can add hefty charges to your bill. Avoid additional charges as they may hurt your business’ bottom line.
Avoid additional charges as they may hurt your business’ bottom line.
Avoid additional charges as they may hurt your business’ bottom line.
If you’ve reached your credit card limit causing certain payments to not go through, this could be very If you’ve reached your credit card limit causing certain payments to not go through, this could be very
If you’ve reached your credit card limit causing certain payments to not go through, this could be very damaging to your business and reputation. Knowing your spending limit is important for ensuring
damaging to your business and reputation. Knowing your spending limit is important for ensuring
damaging to your business and reputation. Knowing your spending limit is important for ensuring mandatory payments are processed successfully.
mandatory payments are processed successfully.
mandatory payments are processed successfully.
High interest rates are one reason many entrepreneurs try to stay away from credit cards. Borrowing High interest rates are one reason many entrepreneurs try to stay away from credit cards. Borrowing
High interest rates are one reason many entrepreneurs try to stay away from credit cards. Borrowing money from the bank is sometimes better as they may offer lower interest rates. Credit cards in Canada
money from the bank is sometimes better as they may offer lower interest rates. Credit cards in Canada
money from the bank is sometimes better as they may offer lower interest rates. Credit cards in Canada can range anywhere from 14% to as high as 28% interest. If credit cards are the only form of financing
can range anywhere from 14% to as high as 28% interest. If credit cards are the only form of financing
can range anywhere from 14% to as high as 28% interest. If credit cards are the only form of financing you can use, use the one with the lowest interest rate and pay it off on time.
you can use, use the one with the lowest interest rate and pay it off on time.
you can use, use the one with the lowest interest rate and pay it off on time.
Payment due dates are also an important factor to consider. Why? Let’s say money is coming into your Payment due dates are also an important factor to consider. Why? Let’s say money is coming into your
Payment due dates are also an important factor to consider. Why? Let’s say money is coming into your business account from sales on the first and last of the month. However your credit card is due on the
business account from sales on the first and last of the month. However your credit card is due on the
business account from sales on the first and last of the month. However your credit card is due on the 21st of every month. It is important to know to pay the amounts owed so they don’t add up, or interest
21st of every month. It is important to know to pay the amounts owed so they don’t add up, or interest
21st of every month. It is important to know to pay the amounts owed so they don’t add up, or interest kicks in. Also, knowing when payments are due helps you make better cash flow decisions.
kicks in. Also, knowing when payments are due helps you make better cash flow decisions. kicks in. Also, knowing when payments are due helps you make better cash flow decisions.
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Small Business Startup Guide
Knowing more about your credit card can help you make better decisions in business. Whether it is Knowing more about your credit card can help you make better decisions in business. Whether it is
Knowing more about your credit card can help you make better decisions in business. Whether it is knowing what fees are charged, if there are currency conversion rates, or whether you can accumulate
knowing what fees are charged, if there are currency conversion rates, or whether you can accumulate
knowing what fees are charged, if there are currency conversion rates, or whether you can accumulate points – it is always good to use this information to your advantage.
points – it is always good to use this information to your advantage.
points – it is always good to use this information to your advantage.
Some credit cards even offer 1 to 2% cash back or other personal or business incentives. Some credit cards even offer 1 to 2% cash back or other personal or business incentives. Some credit cards even offer 1 to 2% cash back or other personal or business incentives. If you opt to not use credit cards as a form of financing for your business, another option could be to use
If you opt to not use credit cards as a form of financing for your business, another option could be to use
If you opt to not use credit cards as a form of financing for your business, another option could be to use personal lines of credit or bank loans.
personal lines of credit or bank loans.
personal lines of credit or bank loans.
Personal lines of credit or bank loans are also an excellent source of financing for your small business. Personal lines of credit or bank loans are also an excellent source of financing for your small business.
Personal lines of credit or bank loans are also an excellent source of financing for your small business. Usually the interest rates are much lower than a typical credit card, and most people already have a
Usually the interest rates are much lower than a typical credit card, and most people already have a
Usually the interest rates are much lower than a typical credit card, and most people already have a bank loan or line of credit available to them.
bank loan or line of credit available to them.
bank loan or line of credit available to them.
In case you don’t have one, the important thing to remember when applying for either a line of credit or In case you don’t have one, the important thing to remember when applying for either a line of credit or
In case you don’t have one, the important thing to remember when applying for either a line of credit or bank loan is to ensure you have a good credit score. Without a good credit score it may be difficult to
bank loan is to ensure you have a good credit score. Without a good credit score it may be difficult to
bank loan is to ensure you have a good credit score. Without a good credit score it may be difficult to obtain any money from the banks- at least with a reasonable interest rate.
obtain any money from the banks- at least with a reasonable interest rate.
obtain any money from the banks- at least with a reasonable interest rate.
You should try to pay off your bank loan or line of credit as often as possible to ensure that you aren’t You should try to pay off your bank loan or line of credit as often as possible to ensure that you aren’t
You should try to pay off your bank loan or line of credit as often as possible to ensure that you aren’t digging a hole which you can’t get out of. Remember to use only what you need, and know that you are
digging a hole which you can’t get out of. Remember to use only what you need, and know that you are
digging a hole which you can’t get out of. Remember to use only what you need, and know that you are personally responsible for that money and you will have to pay it back.
personally responsible for that money and you will have to pay it back.
personally responsible for that money and you will have to pay it back.
Using personal assets to obtain some financing to help you fund your small business can also be an Using personal assets to obtain some financing to help you fund your small business can also be an
Using personal assets to obtain some financing to help you fund your small business can also be an excellent way of getting started. Use of personal assets can mean that you have a home that’s worth a
excellent way of getting started. Use of personal assets can mean that you have a home that’s worth a
excellent way of getting started. Use of personal assets can mean that you have a home that’s worth a few hundred thousand dollars and you want to sell to free up some capital. Or, you may want to use it
few hundred thousand dollars and you want to sell to free up some capital. Or, you may want to use it
few hundred thousand dollars and you want to sell to free up some capital. Or, you may want to use it to obtain a second mortgage on your home to help obtain money from the bank for business expenses.
to obtain a second mortgage on your home to help obtain money from the bank for business expenses.
to obtain a second mortgage on your home to help obtain money from the bank for business expenses. Or perhaps you have a vehicle you don’t need and want to obtain some startup money by selling it.
Or perhaps you have a vehicle you don’t need and want to obtain some startup money by selling it. Or perhaps you have a vehicle you don’t need and want to obtain some startup money by selling it. Maybe you don’t need to get so extreme right off the bat. Always consider all other options before you Maybe you don’t need to get so extreme right off the bat. Always consider all other options before you
Maybe you don’t need to get so extreme right off the bat. Always consider all other options before you think about leveraging your home. Maybe you have a baseball card collection that is just collecting dust
think about leveraging your home. Maybe you have a baseball card collection that is just collecting dust
think about leveraging your home. Maybe you have a baseball card collection that is just collecting dust but might be worth something. Maybe you just need to have a garage sale to get a small amount
but might be worth something. Maybe you just need to have a garage sale to get a small amount
but might be worth something. Maybe you just need to have a garage sale to get a small amount together. Whatever it takes, your personal assets can help you get started.
together. Whatever it takes, your personal assets can help you get started.
together. Whatever it takes, your personal assets can help you get started.
When applying for any sort of funding from the banks, the government, or private investors, your When applying for any sort of funding from the banks, the government, or private investors, your
When applying for any sort of funding from the banks, the government, or private investors, your personal assets can help you obtain that funding. If the investor sees you have something of value, they
personal assets can help you obtain that funding. If the investor sees you have something of value, they
personal assets can help you obtain that funding. If the investor sees you have something of value, they may not be skeptical about giving you money.
may not be skeptical about giving you money.
may not be skeptical about giving you money.
If you’ve used as much as you could from personal financing options, you may want to go and speak If you’ve used as much as you could from personal financing options, you may want to go and speak
If you’ve used as much as you could from personal financing options, you may want to go and speak with your family and friends. They may have some money they want to contribute to help you
with your family and friends. They may have some money they want to contribute to help you
with your family and friends. They may have some money they want to contribute to help you continue building your dream. They are considered private funders but you can work with them to
continue building your dream. They are considered private funders but you can work with them to
continue building your dream. They are considered private funders but you can work with them to finalize the terms of the loan
finalize the terms of the loan
finalize the terms of the loan
Family and friends often agree to help you fund your business. Whether it’s through small amounts or a Family and friends often agree to help you fund your business. Whether it’s through small amounts or a
Family and friends often agree to help you fund your business. Whether it’s through small amounts or a larger capital investment, they want you to succeed. However borrowing money from family and
larger capital investment, they want you to succeed. However borrowing money from family and
larger capital investment, they want you to succeed. However borrowing money from family and friends has its down side as well.
friends has its down side as well.
friends has its down side as well.
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When you turn your loved ones into “lenders”, you are potentially risking your relationship with them as When you turn your loved ones into “lenders”, you are potentially risking your relationship with them as
When you turn your loved ones into “lenders”, you are potentially risking your relationship with them as well as their financial situation if your business venture goes south.
well as their financial situation if your business venture goes south.
well as their financial situation if your business venture goes south.
A common mistake people make when borrowing money from family and friends is treating them as A common mistake people make when borrowing money from family and friends is treating them as
A common mistake people make when borrowing money from family and friends is treating them as family and friends as opposed to treating them as a business investor. It is important to have a solid
family and friends as opposed to treating them as a business investor. It is important to have a solid
family and friends as opposed to treating them as a business investor. It is important to have a solid business plan to present to them as well. This will make you appear more serious about your venture,
business plan to present to them as well. This will make you appear more serious about your venture,
business plan to present to them as well. This will make you appear more serious about your venture, more likely to gain their confidence, and their investment. Your business plan presentation will also
more likely to gain their confidence, and their investment. Your business plan presentation will also
more likely to gain their confidence, and their investment. Your business plan presentation will also educate them as to what your business is about, what you plan on doing, your goals, and what you need
educate them as to what your business is about, what you plan on doing, your goals, and what you need
educate them as to what your business is about, what you plan on doing, your goals, and what you need from them to get started. It paints a clear picture.
from them to get started. It paints a clear picture.
from them to get started. It paints a clear picture.
When it comes to borrowing money from friends or family be sure to have a specific figure in mind. When it comes to borrowing money from friends or family be sure to have a specific figure in mind.
When it comes to borrowing money from friends or family be sure to have a specific figure in mind. Sure you can accept whatever they offer, but be realistic and think about how much you need, and
Sure you can accept whatever they offer, but be realistic and think about how much you need, and
Sure you can accept whatever they offer, but be realistic and think about how much you need, and what you need it for – explain yourself as well.
what you need it for – explain yourself as well.
what you need it for – explain yourself as well.
Be sure to specify the terms when you borrow the money. What is the structure of the arrangement? Be sure to specify the terms when you borrow the money. What is the structure of the arrangement?
Be sure to specify the terms when you borrow the money. What is the structure of the arrangement? Are they simply giving you money as a donation? Do they expect some equity in the company? If so,
Are they simply giving you money as a donation? Do they expect some equity in the company? If so,
Are they simply giving you money as a donation? Do they expect some equity in the company? If so, how much? Is it a loan? If so, what are the terms? Ask and answer as many questions as possible. Inform
how much? Is it a loan? If so, what are the terms? Ask and answer as many questions as possible. Inform
how much? Is it a loan? If so, what are the terms? Ask and answer as many questions as possible. Inform them of the risks involved by presenting them with your SWOT analysis.
them of the risks involved by presenting them with your SWOT analysis.
them of the risks involved by presenting them with your SWOT analysis.
When it comes to family and friends it’s better to be upfront and honest. Let them know the chances of When it comes to family and friends it’s better to be upfront and honest. Let them know the chances of
When it comes to family and friends it’s better to be upfront and honest. Let them know the chances of losing their investment. It is always better let them know ahead of time and manage expectations or
losing their investment. It is always better let them know ahead of time and manage expectations or
losing their investment. It is always better let them know ahead of time and manage expectations or disappointment.
disappointment.
disappointment.
The final approach to obtaining personal financing would be by having a business partner, or multiple The final approach to obtaining personal financing would be by having a business partner, or multiple
The final approach to obtaining personal financing would be by having a business partner, or multiple business partners. The same methods of obtaining personal financing mentioned above could apply to
business partners. The same methods of obtaining personal financing mentioned above could apply to
business partners. The same methods of obtaining personal financing mentioned above could apply to each of your business partners. Your partners can use their savings, loans, credit, and personal
each of your business partners. Your partners can use their savings, loans, credit, and personal
each of your business partners. Your partners can use their savings, loans, credit, and personal connections to fund your small business.
connections to fund your small business.
connections to fund your small business.
By having a business partner, or multiple partners you are dividing and minimizing risk. This means that By having a business partner, or multiple partners you are dividing and minimizing risk. This means that
By having a business partner, or multiple partners you are dividing and minimizing risk. This means that you are not the only one responsible. Each business partner should bear equal responsibility ensuring
you are not the only one responsible. Each business partner should bear equal responsibility ensuring
you are not the only one responsible. Each business partner should bear equal responsibility ensuring the success of the business.
the success of the business.
the success of the business.
For example, you don’t want your business partner borrowing money their personal credit card and not For example, you don’t want your business partner borrowing money their personal credit card and not
For example, you don’t want your business partner borrowing money their personal credit card and not paying it off, then borrowing money from a friend and not setting the terms in place. Any money
paying it off, then borrowing money from a friend and not setting the terms in place. Any money
paying it off, then borrowing money from a friend and not setting the terms in place. Any money borrowed personally could result in a business expense down the road – affecting the entire business.
borrowed personally could result in a business expense down the road – affecting the entire business. borrowed personally could result in a business expense down the road – affecting the entire business. Be smart about choosing business partners, and using business partner’s personal finances to fund your Be smart about choosing business partners, and using business partner’s personal finances to fund your
Be smart about choosing business partners, and using business partner’s personal finances to fund your small business.
small business.
small business.
When you’ve exhausted your resources when it comes to obtaining any money from personal sources When you’ve exhausted your resources when it comes to obtaining any money from personal sources
When you’ve exhausted your resources when it comes to obtaining any money from personal sources of financial assistance you may want to turn to private funding options.
of financial assistance you may want to turn to private funding options.
of financial assistance you may want to turn to private funding options.
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14. PRIVATE SECTOR FINANCING 14. PRIVATE SECTOR FINANCING 14. PRIVATE SECTOR FINANCING Private funding sources are much different than personal financing options. They are more difficult to
Private funding sources are much different than personal financing options. They are more difficult to
Private funding sources are much different than personal financing options. They are more difficult to obtain and you must do the work to initiate the process and go through with it.
obtain and you must do the work to initiate the process and go through with it.
obtain and you must do the work to initiate the process and go through with it.
Preparing yourself for funding through private sources is often recommended. Don’t just jump head Preparing yourself for funding through private sources is often recommended. Don’t just jump head
Preparing yourself for funding through private sources is often recommended. Don’t just jump head first into the search. Be sure to know what private lenders look for before you start.
first into the search. Be sure to know what private lenders look for before you start. first into the search. Be sure to know what private lenders look for before you start. Many lenders will look at the “4 C’s” when evaluating you as a candidate for financing. The 4 C’s are Many lenders will look at the “4 C’s” when evaluating you as a candidate for financing. The 4 C’s are
Many lenders will look at the “4 C’s” when evaluating you as a candidate for financing. The 4 C’s are cash flow, collateral, commitment, and character. A lender may determine how much money to lend by
cash flow, collateral, commitment, and character. A lender may determine how much money to lend by
cash flow, collateral, commitment, and character. A lender may determine how much money to lend by evaluating the first three C’s as the most important. Others may refuse you simply due to the last
evaluating the first three C’s as the most important. Others may refuse you simply due to the last
evaluating the first three C’s as the most important. Others may refuse you simply due to the last “character” criteria. So it is paramount that you are knowledgeable, prepared, and on top of your
“character” criteria. So it is paramount that you are knowledgeable, prepared, and on top of your
“character” criteria. So it is paramount that you are knowledgeable, prepared, and on top of your business to get any private lenders to say yes.
business to get any private lenders to say yes.
business to get any private lenders to say yes.
So what is cash flow?
So what is cash flow?
So what is cash flow?
Cash flow is the ability to repay the cash you are borrowing from the lenders. This is measured simply Cash flow is the ability to repay the cash you are borrowing from the lenders. This is measured simply
Cash flow is the ability to repay the cash you are borrowing from the lenders. This is measured simply by using the cash flow forecast which you’ve created in your business plan.
by using the cash flow forecast which you’ve created in your business plan.
by using the cash flow forecast which you’ve created in your business plan.
What is collateral?
What is collateral?
What is collateral?
Collateral is another word for assets. Collateral is usually assets such as a home, a car, or business Collateral is another word for assets. Collateral is usually assets such as a home, a car, or business
Collateral is another word for assets. Collateral is usually assets such as a home, a car, or business equipment in some cases. What you are willing to offer private lenders that will make them confident in
equipment in some cases. What you are willing to offer private lenders that will make them confident in
equipment in some cases. What you are willing to offer private lenders that will make them confident in your position to pay them back?
your position to pay them back?
your position to pay them back?
What is commitment?
What is commitment?
What is commitment?
Commitment is the amount of funding that you are personally putting into your business. As discussed Commitment is the amount of funding that you are personally putting into your business. As discussed
Commitment is the amount of funding that you are personally putting into your business. As discussed earlier, 25% to 50% personal investment is recommended to show private lenders that you are indeed
earlier, 25% to 50% personal investment is recommended to show private lenders that you are indeed
earlier, 25% to 50% personal investment is recommended to show private lenders that you are indeed “committed”.
“committed”.
“committed”.
What is character?
What is character?
What is character?
Character isn’t whether you are a good person – instead it’s all about your credit score. Private lenders Character isn’t whether you are a good person – instead it’s all about your credit score. Private lenders
Character isn’t whether you are a good person – instead it’s all about your credit score. Private lenders look at the score to see how good you are with money based on your past experiences. If you have a low
look at the score to see how good you are with money based on your past experiences. If you have a low
look at the score to see how good you are with money based on your past experiences. If you have a low score it may tell the investor to back away, that you aren’t a good option for them.
score it may tell the investor to back away, that you aren’t a good option for them.
score it may tell the investor to back away, that you aren’t a good option for them.
Keep in mind that most private lenders look at the 4 c’s, however some may only be interested in equity Keep in mind that most private lenders look at the 4 c’s, however some may only be interested in equity
Keep in mind that most private lenders look at the 4 c’s, however some may only be interested in equity in your business. It is important to know which private funding source you want to apply for financing
in your business. It is important to know which private funding source you want to apply for financing
in your business. It is important to know which private funding source you want to apply for financing with and make a good impression with them.
with and make a good impression with them.
with and make a good impression with them.
How do you make a good impression with potential lenders? How do you make a good impression with potential lenders? How do you make a good impression with potential lenders?Making a good impression on a lender can happen in a number of ways. The most common include: Making a good impression on a lender can happen in a number of ways. The most common include: Making a good impression on a lender can happen in a number of ways. The most common include: ∙ Having a professionally written business plan
∙ Having a professionally written business plan
∙ Having a professionally written business plan
∙ Having strong support in place through skilled management and educated staff ∙ Having strong support in place through skilled management and educated staff
∙ Having strong support in place through skilled management and educated staff ∙ Showcasing your financial numbers. Make sure they are forecasted and reliable.
∙ Showcasing your financial numbers. Make sure they are forecasted and reliable.
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∙ Offering collateral in return for investment
∙ Offering collateral in return for investment
∙ Offering collateral in return for investment
∙ Having a strong credit rating and history
∙ Having a strong credit rating and history
∙ Having a strong credit rating and history
There are many private sector lenders and investors out there offering multiple types of financing in There are many private sector lenders and investors out there offering multiple types of financing in
There are many private sector lenders and investors out there offering multiple types of financing in order to get a return on their investment. Their investment decision most of the time is based on an
order to get a return on their investment. Their investment decision most of the time is based on an
order to get a return on their investment. Their investment decision most of the time is based on an assessment of the potential risks and rewards.
assessment of the potential risks and rewards.
assessment of the potential risks and rewards.
A business plan is the key to getting funded through any private sector funding channels such as: A business plan is the key to getting funded through any private sector funding channels such as: A business plan is the key to getting funded through any private sector funding channels such as: ∙ Through Banks
∙ Through Banks
∙ Through Banks
o Short and Long Term Loans
o Short and Long Term Loans
o Short and Long Term Loans
o Lines of Credit
o Lines of Credit
o Lines of Credit
o Credit Cards
o Credit Cards
o Credit Cards
∙ Through Equity Financing
∙ Through Equity Financing
∙ Through Equity Financing
o Angel Investors
o Angel Investors
o Angel Investors
o Venture Capitalists
o Venture Capitalists
o Venture Capitalists
∙ Business Incubators
∙ Business Incubators
∙ Business Incubators
∙ By Crowdfunding
∙ By Crowdfunding
∙ By Crowdfunding
Each of these channels is a great way to obtain funding for your small business startup, or even growing Each of these channels is a great way to obtain funding for your small business startup, or even growing
Each of these channels is a great way to obtain funding for your small business startup, or even growing a business. Keep in mind that each has their own pros and cons and preferred methods of business or
a business. Keep in mind that each has their own pros and cons and preferred methods of business or
a business. Keep in mind that each has their own pros and cons and preferred methods of business or type or business owner.
type or business owner.
type or business owner.
When we think of private funding, the first two things that come to mind is “outsider investors”-such as When we think of private funding, the first two things that come to mind is “outsider investors”-such as
When we think of private funding, the first two things that come to mind is “outsider investors”-such as angels or venture capitalists – and the banks. These pop up because they are the ones that are
angels or venture capitalists – and the banks. These pop up because they are the ones that are
angels or venture capitalists – and the banks. These pop up because they are the ones that are promoted the most.
promoted the most.
promoted the most.
You often see commercials for local banks offering business loans and lines of credit. Most people know You often see commercials for local banks offering business loans and lines of credit. Most people know
You often see commercials for local banks offering business loans and lines of credit. Most people know somebody that has had one at one point or another. It just seems practical dealing with a bank that you
somebody that has had one at one point or another. It just seems practical dealing with a bank that you
somebody that has had one at one point or another. It just seems practical dealing with a bank that you regularly visit for your personal banking needs already.
regularly visit for your personal banking needs already.
regularly visit for your personal banking needs already.
You also see popular TV shows such as Dragons Den or Shark Tank, where venture capitalists or angel You also see popular TV shows such as Dragons Den or Shark Tank, where venture capitalists or angel
You also see popular TV shows such as Dragons Den or Shark Tank, where venture capitalists or angel investors work with small business owners and entrepreneurs to help them succeed through an equity
investors work with small business owners and entrepreneurs to help them succeed through an equity
investors work with small business owners and entrepreneurs to help them succeed through an equity exchange. It pretty much works like that in real life but a little less entertaining than what you see on TV.
exchange. It pretty much works like that in real life but a little less entertaining than what you see on TV. exchange. It pretty much works like that in real life but a little less entertaining than what you see on TV.
Going to the bank for financing
Going to the bank for financing
Going to the bank for financing
As previously mentioned, before going to a bank to present your business idea to a small business As previously mentioned, before going to a bank to present your business idea to a small business
As previously mentioned, before going to a bank to present your business idea to a small business specialist, be sure to have a professionally prepared business plan on hand.
specialist, be sure to have a professionally prepared business plan on hand.
specialist, be sure to have a professionally prepared business plan on hand.
A business plan is mandatory. It is the one document your advisor will use to determine your eligibility A business plan is mandatory. It is the one document your advisor will use to determine your eligibility
A business plan is mandatory. It is the one document your advisor will use to determine your eligibility for financing. It needs to be completed, concise, professional, and answer all of the questions they
for financing. It needs to be completed, concise, professional, and answer all of the questions they
for financing. It needs to be completed, concise, professional, and answer all of the questions they might have for you.
might have for you.
might have for you.
Typically, approaching a bank for financing will go as follows:
Typically, approaching a bank for financing will go as follows:
Typically, approaching a bank for financing will go as follows:
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You will meet with a bank advisor or small business funding specialist and using your executive You will meet with a bank advisor or small business funding specialist and using your executive
You will meet with a bank advisor or small business funding specialist and using your executive summary, present your business idea followed by any other points of interest.
summary, present your business idea followed by any other points of interest.
summary, present your business idea followed by any other points of interest.
There will then be a round of questions and answers
There will then be a round of questions and answers
There will then be a round of questions and answers
The advisor will ask what you are looking for in terms of money.
The advisor will ask what you are looking for in terms of money.
The advisor will ask what you are looking for in terms of money.
You will present the number, along with why you need it, how it will help you, and what you will You will present the number, along with why you need it, how it will help you, and what you will
You will present the number, along with why you need it, how it will help you, and what you will accomplish if you are able to obtain this amount. Provide documentation to prove and show your
accomplish if you are able to obtain this amount. Provide documentation to prove and show your
accomplish if you are able to obtain this amount. Provide documentation to prove and show your forecast.
forecast.
forecast.
This will be followed up with another round of questions and answers. Most of the time the meeting will This will be followed up with another round of questions and answers. Most of the time the meeting will
This will be followed up with another round of questions and answers. Most of the time the meeting will end there. After the bank advisor has had time to review your business plan and all of your financials,
end there. After the bank advisor has had time to review your business plan and all of your financials,
end there. After the bank advisor has had time to review your business plan and all of your financials, you may receive a call congratulating you on obtaining your loan, or a request to come back in to
you may receive a call congratulating you on obtaining your loan, or a request to come back in to
you may receive a call congratulating you on obtaining your loan, or a request to come back in to discuss moving forward.
discuss moving forward.
discuss moving forward.
Remember that a lender will look at your business plan carefully and may even ask you to put up some Remember that a lender will look at your business plan carefully and may even ask you to put up some
Remember that a lender will look at your business plan carefully and may even ask you to put up some collateral such as a vehicle, home, or personal investments. This mostly occurs in cases of low credit
collateral such as a vehicle, home, or personal investments. This mostly occurs in cases of low credit
collateral such as a vehicle, home, or personal investments. This mostly occurs in cases of low credit scores or new business start-ups.
scores or new business start-ups.
scores or new business start-ups.
The bank may offer you one of the following:
The bank may offer you one of the following:
The bank may offer you one of the following:
∙ Short Term Loan
∙ Short Term Loan
∙ Short Term Loan
∙ Long Term Loan
∙ Long Term Loan
∙ Long Term Loan
∙ Commercial Term Loan
∙ Commercial Term Loan
∙ Commercial Term Loan
∙ Line of Credit
∙ Line of Credit
∙ Line of Credit
∙ Suggest use of business credit card
∙ Suggest use of business credit card
∙ Suggest use of business credit card
Depending on how much you are asking to borrow from the bank, the financial advisor you are working Depending on how much you are asking to borrow from the bank, the financial advisor you are working
Depending on how much you are asking to borrow from the bank, the financial advisor you are working with will determine the most suitable financing option.
with will determine the most suitable financing option.
with will determine the most suitable financing option.
If you are looking for a small amount, a business credit card, a line of credit, or a short term loan may be If you are looking for a small amount, a business credit card, a line of credit, or a short term loan may be
If you are looking for a small amount, a business credit card, a line of credit, or a short term loan may be offered to you. Short term loans usually carry terms of one year for repayment and are often selected
offered to you. Short term loans usually carry terms of one year for repayment and are often selected
offered to you. Short term loans usually carry terms of one year for repayment and are often selected by advisors when smaller amounts are requested.
by advisors when smaller amounts are requested.
by advisors when smaller amounts are requested.
However, if you are seeking a larger sum of money, a long term loan or a commercial term loan may be However, if you are seeking a larger sum of money, a long term loan or a commercial term loan may be
However, if you are seeking a larger sum of money, a long term loan or a commercial term loan may be offered.
offered.
offered.
Either way, the amount of money borrowed is set in a contract between you and your bank, as well as Either way, the amount of money borrowed is set in a contract between you and your bank, as well as
Either way, the amount of money borrowed is set in a contract between you and your bank, as well as the total amount set to pay back the bank with interest and at what time
the total amount set to pay back the bank with interest and at what time
the total amount set to pay back the bank with interest and at what time
Typically, short term loans are for smaller amounts required for running day to day operations or minor Typically, short term loans are for smaller amounts required for running day to day operations or minor
Typically, short term loans are for smaller amounts required for running day to day operations or minor business expenses. Long term loans have repayment periods greater than one year and business
business expenses. Long term loans have repayment periods greater than one year and business
business expenses. Long term loans have repayment periods greater than one year and business owners use them to purchase assets such as; buildings, land, machinery, equipment, or computers.
owners use them to purchase assets such as; buildings, land, machinery, equipment, or computers. owners use them to purchase assets such as; buildings, land, machinery, equipment, or computers. Most small business owners will not be qualified for commercial term loans. But, as you build your Most small business owners will not be qualified for commercial term loans. But, as you build your
Most small business owners will not be qualified for commercial term loans. But, as you build your business’ reputation and financial position, commercial term loans may become available to you from
business’ reputation and financial position, commercial term loans may become available to you from
business’ reputation and financial position, commercial term loans may become available to you fromwww.CanadaStartups.org 78
www.CanadaStartups.org 78
www.CanadaStartups.org 78
Small Business Startup Guide
Small Business Startup Guide
Small Business Startup Guide
your bank. Usually commercial term loans are provided to purchase long term fixed assets such as land, your bank. Usually commercial term loans are provided to purchase long term fixed assets such as land,
your bank. Usually commercial term loans are provided to purchase long term fixed assets such as land, buildings, or equipment. They are also used to increase working capital, invest in business expansion, or
buildings, or equipment. They are also used to increase working capital, invest in business expansion, or
buildings, or equipment. They are also used to increase working capital, invest in business expansion, or to acquire additional businesses.
to acquire additional businesses.
to acquire additional businesses.
Equity for financing
Equity for financing
Equity for financing
If you’ve seen television shows such as Dragons Den or Shark Tank, you know how Equity Financing If you’ve seen television shows such as Dragons Den or Shark Tank, you know how Equity Financing
If you’ve seen television shows such as Dragons Den or Shark Tank, you know how Equity Financing works.
works.
works.
You, as the business owner or entrepreneur take your business plan and your pitch to potential You, as the business owner or entrepreneur take your business plan and your pitch to potential
You, as the business owner or entrepreneur take your business plan and your pitch to potential investors – not necessarily on a televised set- but in an office environment. You confidently present
investors – not necessarily on a televised set- but in an office environment. You confidently present
investors – not necessarily on a televised set- but in an office environment. You confidently present your business idea to them.
your business idea to them.
your business idea to them.
In order to get an invitation from one of these funding investors, your business plan plays a key role to In order to get an invitation from one of these funding investors, your business plan plays a key role to
In order to get an invitation from one of these funding investors, your business plan plays a key role to getting you in the door. A business investor will not meet with you before they’ve read your business
getting you in the door. A business investor will not meet with you before they’ve read your business
getting you in the door. A business investor will not meet with you before they’ve read your business plan or know a little bit about you.
plan or know a little bit about you.
plan or know a little bit about you.
Sending in your business plan ahead of time and obtaining an invitation will ensure that you have their Sending in your business plan ahead of time and obtaining an invitation will ensure that you have their
Sending in your business plan ahead of time and obtaining an invitation will ensure that you have their attention. Now it is up to you to take your plan and present it in a way that captivates the investor, and
attention. Now it is up to you to take your plan and present it in a way that captivates the investor, and
attention. Now it is up to you to take your plan and present it in a way that captivates the investor, and makes them want to invest in you.
makes them want to invest in you.
makes them want to invest in you.
When you are presenting your plan, you must address all information that the investor wants to have When you are presenting your plan, you must address all information that the investor wants to have
When you are presenting your plan, you must address all information that the investor wants to have before making their investment decision. Investors need to know the following:
before making their investment decision. Investors need to know the following:
before making their investment decision. Investors need to know the following:
∙ Who are you?
∙ Who are you?
∙ Who are you?
∙ What do you do?
∙ What do you do?
∙ What do you do?
∙ Why do you do it?
∙ Why do you do it?
∙ Why do you do it?
∙ What do you want?
∙ What do you want?
∙ What do you want?
∙ Why do you want it?
∙ Why do you want it?
∙ Why do you want it?
∙ What will happen if you get it?
∙ What will happen if you get it?
∙ What will happen if you get it?
∙ How will they-the investor-profit from giving it to you?
∙ How will they-the investor-profit from giving it to you?
∙ How will they-the investor-profit from giving it to you?
Being knowledgeable about your business, knowing it inside and out, as well as the market, and overall Being knowledgeable about your business, knowing it inside and out, as well as the market, and overall
Being knowledgeable about your business, knowing it inside and out, as well as the market, and overall industry will make a good impression. Any hesitation could result in you walking away without funding.
industry will make a good impression. Any hesitation could result in you walking away without funding.
industry will make a good impression. Any hesitation could result in you walking away without funding. Most of the time you only have one shot.
Most of the time you only have one shot.
Most of the time you only have one shot.
What do these investors want in return for their investment? What do these investors want in return for their investment? What do these investors want in return for their investment?This form of private sector financing is called equity financing. Equity is basically your company’s worth. This form of private sector financing is called equity financing. Equity is basically your company’s worth.
This form of private sector financing is called equity financing. Equity is basically your company’s worth. Private sector investors such as angel investors or venture capitalists will seek a return for their
Private sector investors such as angel investors or venture capitalists will seek a return for their
Private sector investors such as angel investors or venture capitalists will seek a return for their investment in your business. They set terms of owning a percentage of your company, or a share of the
investment in your business. They set terms of owning a percentage of your company, or a share of the
investment in your business. They set terms of owning a percentage of your company, or a share of the profits to ensure their investment is returned to them, and keeps on generating revenue.
profits to ensure their investment is returned to them, and keeps on generating revenue. profits to ensure their investment is returned to them, and keeps on generating revenue.
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www.CanadaStartups.org 79



Roles
This section provides an overview of the roles within the company and outlines the responsibilities of each employee. It aims to give a clear understanding of the different positions and their specific duties, ensuring effective coordination and collaboration within the organization.
Employee Role and Task Detail Form
Section 1: Employee Information
1. Full Name: Benazer Bullagao
2. Position Title: Marketing Assistant
3. Supervisor’s Name: Dusan Ceko/ Melodie Denis
4. Date of Joining: May 21,2023
Section 2: Role Description
1. Brief Description of Role:[Provide a summary of your role and main responsibilities.]
In my current role at Canada Startups, I have the privilege of serving as a Marketing Assistant, working under the expert guidance of Melodie and Dusan. This position offers me a comprehensive perspective on the multifaceted world of marketing within the company. My responsibilities are diverse and encompass a broad spectrum of marketing disciplines.
A significant portion of my role is dedicated to mastering Search Engine Optimization (SEO). This involves understanding the intricacies of keywords, search algorithms, and the optimization of web content to enhance our online visibility and search rankings. I am actively involved in analyzing and implementing SEO strategies that align with our business objectives, ensuring that our digital presence resonates with our target audience.
Email marketing is another critical area of my responsibilities. I am tasked with crafting compelling email campaigns that not only engage our existing client base but also attract potential clients. This includes segmenting audiences, designing email templates, and analyzing the performance of our email marketing efforts to refine and improve our strategies continually.
Website design and management form a crucial part of my role as well. I am involved in the ongoing process of updating and optimizing our website to ensure it is not only aesthetically pleasing but also user-friendly and aligned with our brand’s message. This encompasses working on layout design, content updates, and ensuring a seamless user experience.
Client attraction and retention strategies are at the heart of my responsibilities. I actively collaborate with my team to develop and implement innovative marketing tactics that resonate with our target demographics. This involves market research, understanding client needs, and creating targeted marketing campaigns that effectively communicate our value proposition.
In addition to these key areas, my role continually evolves to include various other aspects of marketing. These range from social media management to event coordination, each offering unique challenges and learning opportunities.
1. Key Objectives of the Role:
Mastering Search Engine Optimization (SEO):
* Gain an in-depth understanding of SEO techniques and strategies.
* Implement SEO practices to enhance online visibility and improve search rankings.
Website Design and Management:
* Maintain and update the company website, focusing on aesthetic appeal and user experience.
* Ensure the website aligns with the brand’s message and goals.
Client Attraction and Retention:
* Create and implement strategies to attract and retain clients.
* Conduct market research to understand client needs and tailor marketing efforts accordingly.
Diverse Marketing Skills Development:
* Continuously expand skills in various areas of marketing, including social media management and event coordination.
* Adapt to evolving marketing trends and techniques.
Collaborative Teamwork:
* Work collaboratively with supervisors and team members for strategic alignment.
* Contribute to team efforts in achieving overall marketing and company objectives.
Section 3: Daily Tasks and Activities (please provide 3 important tasks you do on a daily basis or an ongoing project that is
1. List of Daily Tasks:[Enumerate the tasks you perform on a daily basis, with a brief description of each.]
2. Task Details:[For each task, provide detailed steps or procedures involved.]
3. Time Allocation:[Indicate the approximate time spent on each task daily.]
4. Priority Level:[Mark the priority level of each task: High, Medium, Low.]
5. Tools and Resources Used:[List any software, tools, or resources required for each task.]
Every day, as part of my workflow, I effectively utilize a task organizer within the Notion platform, a comprehensive and versatile tool for organization and project management. I diligently maintain and update this organizer to ensure it accurately reflects the current status and progress of my ongoing projects and daily tasks. Each morning, this task organizer is my go-to resource. I review it to determine my day’s priorities, focusing keenly on the tasks that require immediate attention and aligning my efforts with upcoming project deadlines.
In an effort to ease communication and task delegation within my team, I have taken the initiative to include my superiors in this organizational system. They have been granted access to view and interact with the organizer. This strategic move has significantly improved our workflow efficiency. My superiors can assign new tasks or projects directly within this platform. As soon as a task is added, I receive an alert and can begin working on it without delay, ensuring a swift and coordinated response to new assignments.
This interactive and shared approach to task management has numerous benefits. It fosters a transparent and collaborative work environment, where priorities are clear, and everyone is aligned on current and upcoming projects. The ability of my superiors to directly add tasks eliminates potential communication delays, allowing for a more dynamic and responsive work process.
Task 1: Managing Weekly Funding Newsletters
As part of my responsibilities, I oversee the creation and dissemination of our funding newsletters, sent out every Wednesday to our registered clients in Canada and the UK who opt to receive email updates. These newsletters serve as a vital communication channel, providing the latest funding information, promotional offers, and updates on expiring funding programs.
Each week, I allocate approximately an hour to craft compelling articles for both the Canadian and UK newsletters. This time is dedicated to meticulous research, sourcing new funding details, and identifying programs within our database that are nearing expiration. It’s crucial to ensure that the content is not only informative but also engaging for our audience.
I send out the Newsletters by using the Aweber platform (the necessary login details can be found in the spreadsheet titled Login Information). My approach involves replicating the structure of our previous newsletters, and making appropriate additions as described earlier. It’s important to be mindful of the number of images used; too many can result in the emails being marked as spam or appearing overly promotional rather than educational.
Once the newsletter content is finalized, I schedule the emails for specific regions, such as Canada and the UK. The timing for dispatching these newsletters is carefully chosen to align with the time zones of our target audiences: 6 PM EST for Canada and 1 PM EST for the UK. This scheduling ensures that our newsletters are received at a time that maximizes their relevance and engagement potential for our clients.
Following the distribution, the next day involves a comprehensive review. I collaborate with my team to analyze key metrics such as average clicks, open rates, and inquiries generated by the articles. This real-time assessment allows us to gauge the immediate performance and make any necessary adjustments for future newsletters.
Moreover, I conduct a thorough comparative analysis at the end of each month. This involves scrutinizing the statistical progression from the initial newsletter sent to the final one and juxtaposing the data against previous months’ performance. This holistic approach aids in understanding trends, identifying successful strategies, and refining our approach to continuously enhance the newsletters’ effectiveness.
By tracking and analyzing these metrics, we can tailor our content strategy, ensuring that our newsletters consistently evolve and resonate with our audience, thereby maximizing engagement and value for our clients.
A summary of the steps and approach can be found here:
1. Accessing the Aweber Platform:
* I start by logging into the Aweber platform, using the credentials stored in our ‘Login Information’ spreadsheet. This spreadsheet is meticulously maintained to ensure secure and easy access to our essential tools.
2. Preparing the Newsletter:
* The newsletter creation process begins by referring to the format of our previous editions. This provides a consistent framework and brand consistency.
* I then proceed to update the content, adding new information, articles, or updates while ensuring the overall structure remains familiar to our audience.
3. Mindful Use of Images:
* When incorporating images, I am particularly cautious. The goal is to strike a balance between visual appeal and informational content. Excessive imagery is avoided to prevent emails from being flagged as spam or appearing overly promotional.
4. Scheduling the Newsletters:
* After finalizing the newsletter content, I focus on the scheduling aspect. This involves setting up the dispatch times tailored to the specific regions we are targeting.
* For Canada, the emails are scheduled to go out at 6 PM EST, considering when our Canadian clients are most likely to engage with the content.
* Similarly, for the UK audience, I schedule the emails for 1 PM EST, which aligns with a time that maximizes visibility and relevance for our UK clients.
5. Maximizing Impact and Relevance:
* The timing strategy for sending out these newsletters is not arbitrary. It is strategically set to ensure that our clients in different time zones receive the newsletters at a moment most conducive to engagement.
* This attention to timing is crucial in enhancing the effectiveness of our communication and ensuring that our content is both seen and appreciated by our clients.
6. Final Review and Dispatch:
* Before the emails are sent, I perform a final review to check for any errors or last-minute adjustments.
* Once everything is confirmed to be in order, I authorize the scheduled send-off, ensuring that our newsletters reach our clients timely and efficient.
Task 2: Updating the Funding Database
At Canada Startups, one key aspect of our services involves connecting clients with viable funding opportunities. To ensure the effectiveness of this service, it’s essential to maintain and regularly update our funding database. This step is vital to avoid directing clients toward programs that are no longer active or to links that may be non-functional.
My specific duty involves the thorough examination and updating of the ‘Funding Database Spread’ sheet. This task includes tracking programs that are nearing their end and identifying those set to renew in 2024. It’s my responsibility to keep this document up-to-date, highlighting which programs have concluded and which new ones should be added. Part of this process also includes contacting program coordinators for updates about ongoing programs and any new ones that might be introduced in the coming year.
The spreadsheet is organized into three segments: ‘Programs to Add,’ ‘Reviewed,’ and ‘Templates.’ The ‘Programs to Add’ section lists new funding opportunities that need to be incorporated into our database, including websites with several programs that require careful review. The ‘Reviewed’ segment includes programs already in our database that have been evaluated but need updates concerning new offerings and their current status. The ‘Templates’ section is a repository of email templates for reaching out to program coordinators and holds contact details for commonly referenced funding programs.
Here is how it’s done:
1. Accessing AIRTABLE: The primary tool for managing our funding database is AIRTABLE, a versatile platform that allows for efficient organization and updating of data. Access to AIRTABLE is secured through login credentials, which are conveniently stored in the ‘Login Information’ spreadsheet. This ensures that team members can readily access the platform without the need to remember or request login details repeatedly.
2. Consulting the ‘Funding Database Spread’: This spreadsheet acts as a central repository for all our funding program data. When initiating the review process, I start by opening this spreadsheet to identify which funding programs require attention. The spreadsheet is meticulously updated and provides a comprehensive overview of each program, including their start and end dates, renewal status for 2024, and any other pertinent details.
3. Contextual Review with Comments: While reviewing the ‘Funding Database Spread,’ I pay special attention to the comments section. These comments often contain critical contextual information, such as recent updates from program coordinators, feedback from clients, or notes from previous reviews. This contextual information is invaluable for understanding the current status of each program and determining the necessary updates or actions.
4. Data Updating in AIRTABLE: Once I’ve identified the programs that need reviewing or updating, I switch to AIRTABLE. Here, I meticulously check each program’s entry against the information in the ‘Funding Database Spread.’ This includes confirming program details, updating renewal statuses, and adding new programs. A key part of this process is ensuring that all the information in AIRTABLE is current and accurate, which is crucial for maintaining the integrity of our database.
5. Verifying Program Links: An important aspect of the update process is verifying the functionality of links to program websites and applications. This involves clicking on each link to ensure it leads to the correct webpage and that the webpage is functional. Broken or outdated links are either updated or flagged for removal to maintain the quality of our database.
6. Utilizing Spreadsheet Headings: The ‘Funding Database Spread’ is organized with various headings, such as ‘Program Name,’ ‘Status,’ ‘End Date,’ and ‘Coordinator Contact.’ Being familiar with these headings is essential for efficient navigation and updating of the database. It allows for quick identification of the information needed and ensures that updates are made in the correct sections of the spreadsheet.
Overall, the process is a combination of data management and thorough cross-referencing between the ‘Funding Database Spread’ and AIRTABLE, ensuring our funding database is accurate, up-to-date, and a reliable resource for connecting clients with funding opportunities.
Section 4: Challenges and Problem-Solving
1. Common Challenges:[Describe any challenges you frequently encounter in your role.]
In my current role, two primary challenges stand out, each demanding a distinct set of skills and approaches. The first is the task of ensuring accurate data collection for effective marketing strategies. This challenge is not just the gathering of relevant data but also its correct interpretation and application. It requires a deep dive into various data sources, ranging from customer feedback and web analytics to market research and social media insights. Developing proficiency in analytical tools and staying ahead of evolving data analysis techniques are crucial aspects of this challenge. Regular collaboration with my team, if available, and continual learning through workshops and courses are essential strategies to navigate and enhance these skills effectively.
Another significant challenge I face is the creation and dissemination of content that meets the high standards of our clientele. This involves a thorough understanding of client expectations, coupled with an ability to produce and deliver content that resonates with the target audience. Establishing a rigorous content review process, engaging in professional development for content creation, and setting up a responsive feedback mechanism are critical to ensuring content quality. This dual-faceted challenge of mastering data collection and analysis, alongside crafting superior content, calls for a harmonious blend of analytical acumen, creative thinking, and continuous skill enhancement to meet and exceed the expectations in my marketing role.
Problem Solving Strategies: [share methods or strategies used to overcome these challeneges]
By addressing these challenges through a combination of skill development, strategic planning, and continuous learning, it can significantly enhance your effectiveness in your marketing role.
1. Enhancing Data Collection and Analysis Skills:
* Utilize Diverse Data Sources: Explore and integrate a variety of data sources such as customer feedback, web analytics, market research, and social media metrics to ensure comprehensive data collection.
* Master Analytical Tools: Invest time in learning and mastering key analytical tools relevant to your industry, like Google Analytics, CRM software, or specialized data analysis tools.
* Continuous Education: Stay informed about the latest trends and techniques in data analysis through ongoing education, such as online courses, workshops, or industry conferences.
* Collaborate with Experts: If available, collaborate with data teams or external experts to deepen your understanding and enhance your data interpretation skills.
2. Ensuring Content Quality Meets Client Standards:
* Understand Client Expectations: Have clear and direct conversations with clients to understand their content standards and expectations. Regularly reviewing client feedback on previous content can also provide valuable insights.
* Implement Quality Control Processes: Establish a robust content review and quality assurance process, which may include peer reviews, using content checklists, or employing content management tools for consistency and accuracy.
* Develop Content Creation Skills: Enhance your skills in content creation by attending relevant workshops, studying successful content strategies in your field, and staying updated on content marketing trends.
* Feedback and Iteration: Create a mechanism for regular feedback on your content, either from clients, colleagues, or industry mentors. Use this feedback constructively to refine and improve your content over time.
**Section 5: **Imagine you’re training someone to take on your position how would you describe your role and instruct your new trainee to take on your position?
1. Key Skills and Knowledge Required:[List the essential skills and knowledge necessary for someone taking on your role.]
2. Training Plan Outline:[Provide an outline of how you would train a new hire for your position, including time frames and key learning objectives.]
3. Mentoring and Support:[Describe the type of support and mentoring you believe is necessary for a new hire.]
4. Resources for Learning:[Suggest any materials, courses, or resources beneficial for learning the role.]
Section 6: Additional Comments*[Provide space for any additional comments or insights about the role that haven’t been covered in the form.]*
Key Skills and Knowledge Required:
* Advanced Digital Marketing Skills: Proficiency in SEO, email marketing, social media management, and content creation.
* Analytical Abilities: Strong skills in data collection, analysis, and interpretation using tools like Google Analytics, Aweber, and AIRTABLE.
* Technical Proficiency: Competence in website management, understanding of CMS, and familiarity with design principles.
* Client-Focused Approach: Ability to understand and meet client needs, develop client attraction and retention strategies.
* Communication and Collaboration: Excellent communication skills for both internal teamwork and external client interactions.
Training Plan Outline:
Week 1-2: Orientation and Basic Training
* Objective: Introduce company culture, ethics, team structure, and foundational marketing concepts.
* Activities: Orientation sessions, meet-and-greets with team members, introductory workshops on basic marketing principles and company practices.
* Learning Materials: Employee handbook, marketing basics e-books, and company’s past marketing campaign case studies.
Week 3-4: Specialized Skill Development
* Objective: Build specific marketing skills, focusing on SEO and email marketing.
* Activities: Interactive workshops on SEO and email marketing, hands-on exercises with current campaigns, shadowing team members on live projects.
* Learning Materials: Advanced online courses in SEO, email marketing tool tutorials, webinars, and shadowing session notes.
Week 5-6: Web Management and Content Creation
* Objective: Develop skills in website management, CMS, and content creation.
* Activities: Training on CMS tools, content creation workshops, and practice sessions on website updating and blog writing.
* Learning Materials: Video tutorials on CMS and web design, content creation guidelines, style guide of the company.
Week 7-8: Data Analytics and Reporting
* Objective: Learn to effectively use data analysis tools and report findings.
* Activities: Deep dive into Google Analytics and AIRTABLE, project to analyze a set of campaign data, and present findings.
* Learning Materials: Google Analytics certification course, AIRTABLE user guide, data analysis case studies.
Week 9-10: Real-World Application and Project Management
* Objective: Apply acquired skills to real projects, manage a small campaign.
* Activities: Leading a mini-project or campaign, regular review meetings with supervisors for feedback and guidance.
* Learning Materials: Project management tools, campaign planning templates, feedback and review checklists.
Week 11-12: Integration and Feedback
* Objective: Full integration into the team, and reflection on learning and areas for improvement.
* Activities: Participation in team meetings as a fully integrated member, final project presentation, comprehensive feedback session.
* Learning Materials: Team collaboration tools, final project brief, comprehensive review forms.
Support and Mentoring:
* Dedicated Mentor: Assignment of a senior marketing professional as a mentor for regular guidance and support.
* Weekly and Monthly Check-Ins: Structured meetings with the mentor for progress tracking and with supervisors for broader feedback.
* Peer Learning: Encouraging interaction with peers for shared learning experiences and insights into different aspects of marketing within the company.
Resources for Learning:
* Curated Online Courses: Handpicked courses covering advanced digital marketing, data analytics, and content strategy.
* In-House Training Materials: Access to the company’s archive of marketing materials, campaign reports, and strategy documents.
* External Knowledge Resources: Subscriptions to leading marketing journals, invitations to webinars, and conferences in the marketing domain.
This comprehensive training program is designed to equip the new hire with the skills, knowledge, and practical experience required to excel as a Marketing Assistant. It balances theoretical learning with practical application and provides ample opportunities for feedback and continuous improvement, ensuring a well-rounded development and successful integration into the Canada Startups team.