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GRANTS, LOANS &
MORE: SOURCES OF
FINANCE TO GROW
YOUR BUSINESS
The Main Sources of Money
• Personal savings
• Friends and relatives
• Business partners
• Suppliers
• Banks
• Government
• Angel investors
• Credit cards
• Crowdfunding
Pitch Your Business
• Know your industry
• Develop a business plan
• Know your numbers
• Know your strengths and weaknesses
• Presentation
• Never give up
Key Criteria
• Management team
• Financial performance
• Money required
• Repayment period
• Financial forecasts
• Sales projections
• Plan to grow the business
Family and Friends
• If you borrow from family get it in writing
– Amount of the loan
– Interest rate
– Payment terms
– What happens if you can’t repay the
loan
Tell them start ups are risky
Family and Friends
• Incorporate and sell them
shares
• Get advice from an
accountant and lawyer if
necessary
Business Partners
• Complimentary skills
• Money
• Shared vision
• 1 + 1 = 3
Double the trouble half the profit
Commercial Banks
• They look at:
– Industry experience
– Business plan
– Collateral
• They’ll do a background check
• They’ll check your credit score
• Personal net worth
Angel Investors
• Key source of funding for small
business
• Wealthy individuals that want to
invest money in small business
• They can act as great mentors
• Found through networking
• They finance early stage investors
Summary
• Know your industry
• Develop a business plan
• Understand the criteria that influences lenders
• Look at non-traditional sources
• Do your research on government programs
• Look at crowd funding
• Buyer beware
• Don’t give up
Q&A
Thank You

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2016 Canadian Sources of Financing for Small Business

  • 1. GRANTS, LOANS & MORE: SOURCES OF FINANCE TO GROW YOUR BUSINESS
  • 2. The Main Sources of Money • Personal savings • Friends and relatives • Business partners • Suppliers • Banks • Government • Angel investors • Credit cards • Crowdfunding
  • 3. Pitch Your Business • Know your industry • Develop a business plan • Know your numbers • Know your strengths and weaknesses • Presentation • Never give up
  • 4. Key Criteria • Management team • Financial performance • Money required • Repayment period • Financial forecasts • Sales projections • Plan to grow the business
  • 5. Family and Friends • If you borrow from family get it in writing – Amount of the loan – Interest rate – Payment terms – What happens if you can’t repay the loan Tell them start ups are risky
  • 6. Family and Friends • Incorporate and sell them shares • Get advice from an accountant and lawyer if necessary
  • 7. Business Partners • Complimentary skills • Money • Shared vision • 1 + 1 = 3 Double the trouble half the profit
  • 8. Commercial Banks • They look at: – Industry experience – Business plan – Collateral • They’ll do a background check • They’ll check your credit score • Personal net worth
  • 9.
  • 10.
  • 11. Angel Investors • Key source of funding for small business • Wealthy individuals that want to invest money in small business • They can act as great mentors • Found through networking • They finance early stage investors
  • 12.
  • 13.
  • 14.
  • 15. Summary • Know your industry • Develop a business plan • Understand the criteria that influences lenders • Look at non-traditional sources • Do your research on government programs • Look at crowd funding • Buyer beware • Don’t give up