This document provides information on starting a business, including what qualities make a successful entrepreneur, the steps to legally start a business, and options for financing a new business venture. It discusses the importance of developing a business plan that describes the business, management team, marketing strategy, and financial projections. The document also outlines various financing options for startups, such as personal loans, lines of credit, and term loans. It promotes the financing and consulting services available through the Business Development Bank of Canada.

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Are you ready to start?
What is an entrepreneur?
– "An entrepreneur is a person who
assumes the organization, management
and risks involved in a business
venture."
Qualities that make a successful
entrepreneur:
– Decision Maker
– Analytical Ability (problem solving skills)
– Good Interpersonal Skills
– High Drive (highly motivated)
– Risk Taker
What you need:
 Personal skills
 Business knowledge
 A good idea!
 Start-up money
 Support
 Good personal
credit history
What you need:
 Personal skills
 Business knowledge
 A good idea!
 Start-up money
 Support
 Good personal
credit history

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Lets get down to business
From a legal
stand point
From a fiscal
stand point
From an insurance
stand point
 Choose the form of
business:
– Sole proprietor
– Partnership, or
– Incorporation
 Register your form
of business
 Get a business
licence
 Get a business
number
 Register for GST
and PST
 Buy business
insurance
– Liability
– Disability
– Key people
– Business interruption
 Prepare to have
employees
First steps to start a business:

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Your proposal
 Your proposal will include your business
plan as well as additional documentation
such as:
–Market research
–Industry trends
–Other information supporting your
project’s viability

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Your business plan
What is a business plan:
 A business plan can help
you detail your goals, and
serves as an operational
plan for achieving them
 Everyone who is going
into business and who is
operating a business requires
a business plan
Why a business plan?
 It describes your business
 It conveys your vision to
potential investors
 It explains your business
goals
 It raises potential problems
and ways to solve them
 It states the amount of
capital required to finance
your venture
Why a business plan?
 It describes your business
 It conveys your vision to
potential investors
 It explains your business
goals
 It raises potential problems
and ways to solve them
 It states the amount of
capital required to finance
your venture

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Your business plan
What it should include:
1. An executive summary
2. A description of your company
3. A description of your management team
4. An overview of your marketing plan
5. Human resources plan
6. Financial planning
7. Appendices that boost your credibility

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Your business plan
What it should include:
1. An executive summary
 Your industry, products/services, competitive
advantages, amount of financing required
2. A description of your company
 Legal status, date company founded, mission,
objectives and vision
3. A description of your management team
 Roles, experience and competence, education

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Your Business plan
Overview of your
Marketing plan
 Is there a proven market
for your products or
services?
 Who are your competitors?
 What is your client profile?
 What will you offer that is
better?
 How will you get them to
switch?
Overview of your
Marketing plan
 Is there a proven market
for your products or
services?
 Who are your competitors?
 What is your client profile?
 What will you offer that is
better?
 How will you get them to
switch?
4. Marketing Plan
Four sections should be detailed:
1. Your product or services
 Why your products/services will sell?
1. Your market potential
 Target clients, market size and
penetration, demographic factors
1. Overview of your competition
 Their strengths and weaknesses
1. Marketing strategy
 Overview of your Marketing plan,
media chosen, partners, etc.

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Your Business plan
5. Human resource plan
– Determine how you will recruit, retain and develop employees:
– HR Policy
– Subcontracting and outside professionals
– Organizational and development plan
6. Financial planning
– Forecasts, balance sheet, statement of income, cash flow
budget
7. Appendices that boost your credibility
– Brief bios of your management team, market studies, client
testimonials, etc.

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Finding financing
What lenders look for:
 Proof of experience, skills, determination, and self-
confidence to successfully carry out your project
 Your personal credit history – past performance can
affect perception about how you will perform in the future
 Your business plan must be clear, structured, and short,
but it must cover all elements of your business idea

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Finding financing
What lenders look for:
 For new and existing companies:
–Forecast for next 2 years
–A cash flow analysis that describes
your forecasts:
• Shows the seasonal fluctuations in your
business and prescribes the need for capital

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Financing to get started
Finding initial financing:
 Proof that you have a long-term
commitment to your project
 Proof that you have a long-term
commitment to your project
1. Personal investment
money: Cash/collateral on
your assets.
 Bankers consider this asset as “patient
capital”
 Bankers consider this asset as “patient
capital”
2. Gift capital or love money:
Money loaned by loved one
and that will be repaid later.
3. Investments from others:
Money you raise from
investors.
 Bankers regard such investment highly
 Proof that your idea is sound but can often
diminish the degree of control you have
over you own company
 Bankers regard such investment highly
 Proof that your idea is sound but can often
diminish the degree of control you have
over you own company

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Financing to get started
Finding initial financing:
 Policy for paying suppliers based on their
payment conditions (often 30 or 60 days after
delivery).
 Check with each supplier, since many offer
discounts for quick payment.
 Policy for paying suppliers based on their
payment conditions (often 30 or 60 days after
delivery).
 Check with each supplier, since many offer
discounts for quick payment.
4. Supplier (A/P)
Financing:
 You may have access to grants, subsidies or
tax credits to help recover expenses such as
salaries or equipment.
 You may have access to grants, subsidies or
tax credits to help recover expenses such as
salaries or equipment.
5. Grants,
Subsidies and
Tax Credits:

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Financing to get started
 Money loaned to you, not your business
 Loan secured by your personal assets
 Many banks offer this type of loan to start-up businesses
or those with few assets (land, building or equipment)
 Money loaned to you, not your business
 Loan secured by your personal assets
 Many banks offer this type of loan to start-up businesses
or those with few assets (land, building or equipment)
1. Personal Loan
Type of loans:
 Short term, flexible financing that you manage yourself
 Borrowing as much as you need up to a determined
amount
 Secured by your inventory and accounts receivable, and
your bank can require full repayment at any time
 Short term, flexible financing that you manage yourself
 Borrowing as much as you need up to a determined
amount
 Secured by your inventory and accounts receivable, and
your bank can require full repayment at any time
2. Operating Loan
- Also called
Line of Credit

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Financing to get started
 Long-term financing option for fixed assets such as
equipment, land or building
 Long-term financing option for fixed assets such as
equipment, land or building
3. Term Loan
Type of loans:
 Long-term financing to cover projects such as
Growth, Export, Marketing, e-Business, R&D, etc.
 Help provide you the cash flow to fuel your growth
 Complement your existing line of credit
 Long-term financing to cover projects such as
Growth, Export, Marketing, e-Business, R&D, etc.
 Help provide you the cash flow to fuel your growth
 Complement your existing line of credit
4. Working capital
Loan

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Financing to get started
About BDC:
 BDC is a Crown corporation with a mission to help Canadian
entrepreneurs start and grow their companies
 BDC acts as a complementary lender in the market and
operates on a commercial basis (must be financially
sustainable)
Building tomorrow's businesses:
 For over 60 years, BDC has provided flexible financing and
consulting solutions that are tailored to the needs of
entrepreneurs and designed to help their business prosper

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Why choose BDC
BDC can provide support to entrepreneurs who:
 Are in the start-up or early growth phase
(first 12 months of sales)
 Can demonstrate realistic market and sales potential
 Possess experience or expertise in their chosen field
 Demonstrate key personal characteristics of a successful
entrepreneur
 Have assembled a competent management team
 Have invested reasonable financial resources in the
enterprise
 Can provide personal and credit references

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Why choose BDC
Co-Vision
(Start-up financing program)
Term Financing
(Flexible long-term financing)
 Customized term financing up to
$150,000
 For new businesses demonstrating
long-term viability
 BDC can provide personalized
management support
 Can not be used for change of
ownership
 For a variety of commercially viable
projects such as:
– expansion
– plant overhauls
– purchase of existing businesses
– acquisition of fixed assets
 In some cases, may be used to
reconstitute working capital depleted
by capital expenditures or to finance
sales growth
BDC start-up solutions at a glance:

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Why choose BDC
BDC start-up solutions offer a total solution
for entrepreneurs
 BDC may be able to offer:
– Up to $150,000 in financing
– Up to a 6-year repayment period
– Progressive or seasonal repayment options
tailored to your business’s cash flow
– Consulting and mentoring solutions

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Good to know…
Insights on investors and lenders
 Many entrepreneurs are intuitive and rely on their
experience, industry knowledge, and gut feelings to tell
them whether a project “makes sense”
 Most bankers are methodical, and won’t draw conclusions
quickly- especially if they don’t have all the facts before them
 Given that they don’t have your technical knowledge, they
will want to see that you have thoroughly analyzed and
planned your project
 A thought out business plan is key to your success

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Useful resources
To help you get started:
Strategis (Industry Canada): www.strategis.ic.gc.ca
– Useful resource to find industry-related information and tons of
information on what you need to do to get your business started
Canada Business Service Centre: www.cbsc.org
– Excellent resource centre to help in writing business plans,
determining types of loans and other resources that may be
applicable to your business
BDC: www.bdc.ca/startup or 1-800 INFO BDC
– # 1 resource for all your financing and consulting needs.
Templates of business plans available and lots of pertinent info.

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Thank you!
To find out more about BDC
Contact: Marie Bruno, Senior Manager
153 Great Northern Road
Phone: (705) 941-3039
marie.bruno@bdc.ca
www.bdc.ca