BDC - Starting a Business


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This is a BDC presentation and not StartMeUp Ryerson.

The BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to help companies continue with operations and to promote their success.

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BDC - Starting a Business

  1. 1. Starting a business Starting a business
  2. 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. 3. An unwavering commitment to the success of Canadian entrepreneurs
  4. 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. 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. 6. Starting a business For a unique client service experience Why choose BDC?
  7. 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. 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. 9. Starting a business Start-up financing
  10. 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. 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. 12. Starting a business Get started
  13. 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. 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. 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. 16. Starting a business Business plan
  17. 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. 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. 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. 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. 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. 22. Starting a business Finding the right financing
  23. 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. 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. 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. 26. Starting a business Financing to get started
  27. 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. 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. 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. 30. Starting a business Useful links
  31. 31. Starting a business Useful links Strategis (Industry Canada): 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: Excellent resource centre to help in writing business plans, determining types of loans and other resources that may be applicable to your business BDC: Number 1 resource for all your financing and consulting needs. Templates of business plans available and lots of pertinent info
  32. 32. Starting a business Thank you
  33. 33. Starting a business 1-800-info-BDC SAL RABBANI (416) 973-0242