The document outlines resources and support for Canadian entrepreneurs seeking to start and grow their businesses, focusing on financing, venture capital, and consulting services. It emphasizes the importance of a well-structured business plan and provides details on the types of funding available, eligibility criteria, and key entrepreneurial skills needed for success. The Business Development Bank of Canada (BDC) aims to complement traditional financing institutions and assist businesses facing market gaps.

1. Starting a business
Starting a business

2. Starting a business
Accelerate entrepreneurs’ success
Our mission
Help create and develop Canadian businesses through financing, venture
capital and consulting services, with a focus on small and medium-sized
enterprises (SMEs)

3. An unwavering commitment to the
success of Canadian entrepreneurs

4. Starting a business
We share the entrepreneurial spirit that drives
Canadian businesses from coast to coast
> Our dedicated and experienced employees are helping more than
28,000 clients reach their full potential
> Over 100 branches across Canada to provide our clients with solutions that
meet local economic realities
> Close to $10 billion of assets under management

5. Starting a business
Our mandate
> Be a complementary lender in the market to other traditional
financing institutions
> Fill the market gaps and maximize financing alternatives
> Operate on a commercial basis, i.e. to be financially sustainable
BDC does not provide:
> Bank accounts, lines of credit, term deposits, investment certificates,
RRSPs or insurance
> Interest-free grants or loans
> Residential or non-commercial loans, vehicle or equipment leasing

6. Starting a business
For a unique client service experience
Why choose BDC?

7. Starting a business
Our approach goes beyond money
> We look at your business as a whole, including management expertise,
potential for growth and the viability of the project
> We want to optimize your financial resources by offering repayment
terms tailored to your business cycle and needs
> You can count on professional advice from our consulting services

8. Starting a business
We are there, come rain or shine
Our loans are non-demand, BDC is there over the long term
This will give you the peace of mind you need to thrive

9. Starting a business
Start-up financing

10. Starting a business
Start-up financing
BDC can provide support to entrepreneurs who:
> Are in the start-up or early growth phase (less than 24 months of sales)
> Can provide personal and credit references
> Have reasonable personal financial resources invested in the company
> Have a business plan that includes cash flow forecast and can demonstrate
realistic market and sales potential
> Possess experience or expertise in their chosen field
> Have assembled a competent management team
> Demonstrate key personal characteristics of a successful entrepreneur

11. Starting a business
Start-up financing
Start-up financing
Most industries are eligible, with emphasis on manufacturing, distribution,
construction, business services and tourism industries
Eligible projects:
> Purchase of fixed assets and soft costs expenses
> Working capital
> Start-up marketing expenses
> Purchase of franchise and soft costs expenses
Changes of ownership are not eligible
Up to $150,000
> Amortization period up to 6 years
> Progressive or seasonal repayment options tailored to your business’s cash flow
> Consulting and mentoring solutions available

12. Starting a business
Get started

13. Starting a business
Get started
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

14. Starting a business
Get started
What you need to succeed
> Personal skills
> Business knowledge
> A good idea!
> Start-up money
> Support
> Good personal credit history

15. Starting a business
First steps to starting a business
From a legal
standpoint
From a fiscal
standpoint
From an insurance
standpoint
Choose the form of
business:
- Sole proprietorship
- Partnership
- 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

16. Starting a business
Business plan

17. Starting a business
Business plan
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

18. Starting a business
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
> A business plan is required from anyone who is planning to start a new
business
Why a business plan?
> To describe your business
> To convey your vision to potential investors
> To explain your business goals
> To identify potential problems and ways of solving them
> To state the amount of capital required to finance your venture

19. Starting a business
Business plan
What a business plan should include:
1) Executive summary
- Your industry, products/services, competitive advantages, amount of
financing required
2) Description of your company
- Legal status, date company founded, mission, objectives and vision
3) Description of your management team
- Roles, experience and competence, education

20. Starting a business
Business plan
4) Marketing plan in four sections
1) Your product or services: why your products/services will sell
2) Your market potential: target clients, market size and penetration,
demographic factors
3) Overview of your competition: their strengths and weaknesses
4) Marketing strategy: overview of your marketing plan, media chosen,
partners, etc.
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?

21. Starting a business
Business plan
5) Human resources 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.

22. Starting a business
Finding the right financing

23. Starting a business
Finding the right 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 perceptions
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
> Forecast for next 2 years and a cash flow analysis that shows seasonal
fluctuations in your business

24. Starting a business
Finding the right financing
Finding initial financing
1) Personal investment money:
Cash/collateral on your assets,
proof that you have a long-term commitment to your project
2) Gift capital or love money:
Money loaned by close relative, to be repaid later,
bankers consider this asset as “patient capital”
3) Investments from others:
Money you raise from investors
> Bankers regard such investments highly
> Proof that your idea is sound, but can often diminish the degree of
control you have over your own company

25. Starting a business
Finding the right financing
4) Supplier (A/P) 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
5) Grants, Subsidies and Tax Credits:
> You may have access to grants, subsidies or tax credits to help recover
expenses such as salaries or equipment

26. Starting a business
Financing to get started

27. Starting a business
Financing to get started
Types of loan
> Personal loan
– 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)
> Operating loan (also called Line of credit)
– 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

28. Starting a business
Financing to get started
> Term loan
– Long-term financing option for fixed assets such as equipment,
land or building
> Working capital loan
– Long-term financing to cover projects such as export,
marketing, e-business, R&D, etc.
– Helps provide you the cash flow to fuel your growth
– Complements your existing line of credit

29. Starting a business
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

30. Starting a business
Useful links

31. Starting a business
Useful links
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
Number 1 resource for all your financing and consulting needs. Templates
of business plans available and lots of pertinent info

32. Starting a business
Thank you

33. Starting a business
1-800-info-BDC www.bdc.ca
SAL RABBANI
(416) 973-0242
sal.rabbani@bdc.ca