11/19/2015 Start Smart Presented by: Bridget Field AGENDA - - PDF document

▶
11 19 2015
SMART_READER_LITE
LIVE PREVIEW

11/19/2015 Start Smart Presented by: Bridget Field AGENDA - - PDF document

Jul 31, 2023 16 likes •178 views

11/19/2015 Start Smart Presented by: Bridget Field AGENDA Introductions Viability, Market Research & Business Planning Resources & Tools Business Structures and Basic Legal Requirements for Starting a Business ABOUT US

slide-1
SLIDE 1

11/19/2015 1 Start Smart

Presented by: Bridget Field

  • Introductions
  • Viability, Market Research & Business Planning
  • Resources & Tools
  • Business Structures and Basic Legal Requirements

for Starting a Business

AGENDA

Who are we?

  • Small Business BC is B.C.'s premiere resource centre for

knowledge-based business products and services

Our vision

  • To be a champion for British Columbia’s small businesses

Our mandate

  • To provide the relevant information, appropriate tools and resources

needed to achieve successful and sustainable business

ABOUT US

slide-2
SLIDE 2

11/19/2015 2

YOUR BUSINESS IDEA……. PHASE 1 IDEA PHASE 2 – THE “PAPER NAPKIN” BUSINESS PLAN IDEA PHASE 3 – THE FORMAL BUSINESS PLAN

slide-3
SLIDE 3

11/19/2015 3

  • Evaluate your business idea tool (handout)
  • 20 key questions
  • Launching pad for your Market Research (next step)
  • Learn what you “don’t know”
  • Is your IDEA worth pursuing?
  • What are the opportunities?
  • What are the risks?
  • How to best mitigate risk….a business plan

BUSINESS VIABILITY

  • Why is a Business Plan important?
  • Mandatory for accessing financing
  • Your blueprint for success
  • Your implementation schedule
  • A marketing / communications tool
  • Includes a financial viability analysis and the need for

financing and the amount

  • Proof that you have examined your concept thoroughly on

paper

  • Can you forecast a profit?

BUSINESS PLANNING WHAT SHOULD A BUSINESS PLAN INCLUDE?

Executive Summary

  • An overview of your concept, key objectives of your business,

your product or service offering, target market(s), competitive advantages, marketing strategy, a summary of your financial projections and key dates, “the ask amount” for financing

  • It’s a summary of the overall plan, so should be written last

Business Overview

  • Details regarding your business’s history, vision and/or mission,
  • bjectives, and your ownership structure.
slide-4
SLIDE 4

11/19/2015 4

BUSINESS PLAN

Products and Services

  • Features and benefits of product/service, competitive advantage
  • Distribution channels, manufacturing process, location, etc.

Industry Overview

  • Demonstrate viability by discussing size and growth of your

industry and its key markets

  • Industry Trends
  • Competitive Analysis

BUSINESS PLAN

Marketing Strategy

  • Unique Selling Proposition – how will you differentiate

from your competition

  • Pricing and promotion
  • Outline of Marketing tactics for all market segments
  • Describe each distribution channel’s buying cycle

Operations Plan

  • Who (on your team) does what (tasks), where (facility),

when (frequency), how (process) and why (does in make sense)

  • Profile of management team, HR plan, location and

facilities, production cycle, and day to day operations

BUSINESS PLAN

Financial Plan

  • Two years of projected financial statements including

income statements, balance sheets, and cash flow

  • Be sure to document all assumptions used in forecasting

revenues and expenses

  • Most crucial section for risk assessment and obtaining

external funding

slide-5
SLIDE 5

11/19/2015 5

The “backbone” of your business plan

  • Primary and Secondary Data
  • Who is your target market?
  • Who are your competitors? Direct and Indirect
  • What are the trends in your industry?

MARKET RESEARCH

Based on your Financial Plan

  • How much money do you require to start your business?
  • What do you need to get a loan?
  • Grants vs. Loans www.canadabusiness.ca for Database
  • Popular programs for lending: Vancity “Be Your Own Boss”

loan and others, Women’s Enterprise, Futurpreneur, Canada Small Business Financing Program

ACCESSING FINANCING

Available to You from Small Business BC:

  • Free “Do it yourself” resources
  • “How to’s”, checklists and templates
  • Electronic tools
  • Education / Seminars / Webinars
  • 1to1- Advisory, Consultations & Ask the Experts

RESOURCES

slide-6
SLIDE 6

11/19/2015 6

www.smallbusinessbc.ca Excellent resources, tools, articles and information for entrepreneurs

  • Business Planning Section - tips, guides, interactive business

plan writing tools, sample plans

  • Enhanced Features - Downloadable Checklists, Expert Insights

Videos, Blog, Success Stories

  • Community – register for upcoming seminars / webinars,

networking events, and e-newsletter

Handouts & Checklists

  • Starting a Business topics
  • Access ‘How to’ documents
  • Understand steps involved

Libraries- Resources in print and Databases

  • Business Manuals, Directories, Market data, How to Start

and Run Series (Self-Counsel Press)

  • Your local library and www.vpl.ca for Market Research

FREE RESOURCES – HOW TO’S, CHECKLISTS AND LIBRARIES FREE RESOURCES - ELECTRONIC DATABASES FOR MARKET RESEARCH

www.vpl.ca/electronic_databases/alpha/r

slide-7
SLIDE 7

11/19/2015 7

RESOURCES – SAMPLE BUSINESS PLANS AND TEMPLATES

www.referenceforbusiness.com/business-plans/

SAMPLE BUSINESS PLANS

www.bplans.com

FREE RESOURCES - FINANCIAL BENCHMARKING TOOL

http://www.ic.gc.ca/eic/site/pp-pp.nsf/eng/home

slide-8
SLIDE 8

11/19/2015 8

Seminars / Webinars www.smallbusinessbc.ca/seminars Recommended Start Up Topics

Business Viability / Breakeven Analysis Tax Tips Legal Tips Social Media Sales & Marketing and many more…

EDUCATION

Expertise when you need it One-on-One Advisory Services - in person, by Skype, phone or email at Small Business BC

  • 30 minute Assessment Consultations (free by

appointment)

  • Market Research Coaching (fee based)
  • Business Plan Coaching or Review (fee-based)
  • International Trade Consultations (fee-based)
  • Ask the Expert (fee based)

RESOURCES – 1 on 1 ADVISORY

Ask the Expert Services at Small Business BC or in your Community

Get help from industry professionals:

  • Ask an Accountant
  • Ask a Website expert
  • Ask a Branding expert
  • Ask a Lawyer (or Law Society of BC Lawyer Referral

Service)

  • Ask a Social Media expert
  • Ask a Business Broker
  • Ask a HR expert

RESOURCES – EXPERT ONE TO ONE CONSULTATIONS

slide-9
SLIDE 9

11/19/2015 9

BASIC LEGAL REQUIREMENTS

  • Company Structures (Synergy Business Law)
  • Company Name Protection & (IP - Start Smart 2)
  • Registering Your Business
  • GST/PST Registration
  • Acts & Regulations
  • City Business Licensing
  • Income Tax, Record Keeping and Small Business

Accounting

  • Working with an Accountant/Canada Revenue Agency
  • Working with a Lawyer
  • Worksafe BC (Start Smart 2)
  • Insurance (Start Smart 2)

SELF EMPLOYED STATUS VS. REGISTERED COMPANY

  • Self Employed

– Ideal for Consultants – Entitled to the same tax deductions as registered company – No registration costs – Can still obtain a PST/GST/CRA account number under your own name – Open business bank account under your own name

  • Registered Company

– Can cost $70 to $395 in registration fees – Is not a provincial government requirement – It is a financial institution requirement to open a business bank account under a name

  • ther than your own

– Useful for branding purposes

Sole Proprietorship, General Partnership or Incorporation

  • Advantages and Disadvantages?
  • See the handout for full list of advantages and

disadvantages by structure to consider

  • What is the best company formation for your

business?

  • What makes sense for your stage of business?

COMPANY STRUCTURE

slide-10
SLIDE 10

11/19/2015 10

INCORPORATION

  • Advantages

– Limited liability – Possible tax advantages – Ownership is transferable – Specialized management – Continuous existence – Separate legal entity – Easier to raise capital – Company name protection in the province of BC

  • Disadvantages

– Closely regulated – Most expensive registration fee ($350+) – Charter restrictions – Extensive record keeping required – Shareholders may be held legally responsible in certain circumstances

SOLE PROPRIETORSHIP

  • Advantages

– Low start-up costs – Greatest freedom from regulation – Owner in direct control of decision making – Minimal working capital required – Continuous existence – Tax advantages to owner – All profits to owner

  • Disadvantages

– Unlimited liability – Lack of continuity in business in absence of

  • wner

– Difficulty in raising capital – No company name protection in the province

  • f BC

GENERAL PARTNERSHIP

  • Advantages

– Low start-up costs – Ease of formation – Partners provide additional source of investment capital – Possible tax advantages – Limited regulation – Broader management base

  • Disadvantages

– Unlimited liability – Divided authority – Difficulty in raising additional capital – Difficult to find suitable partners – Possible development of conflict between partners – Partners can legally bind each

  • ther without prior approval

– No company name protection in the province of BC

slide-11
SLIDE 11

11/19/2015 11

NAMING YOUR COMPANY

– It is a branding exercise, not just about registering procedures – Take your time, there is no rush – Ensure you investigate all the name protection options

  • Consider registering for “Naming Your Business” Seminar!

– Budget for the level of name protection you want or require

  • Domain name registration
  • Trademark protection
  • Corporate name protection in BC

STEP 1 - NAME RESERVATION (BC Registrar of Companies – Victoria)

  • DISTINCTIVE ELEMENT

– “G.H.W.” – “Bob’s” – “West Coast” – “Superior Creative” – “Martha’s” – “J & B”

  • DESCRIPTIVE ELEMENT

– “Transport” – “Drycleaners” – “Consulting” – “Services” – “Enterprises” – “Trading Company”

  • All incorporated companies must have a corporate

designation in the name

  • Personal Preference dictates choice:

– INCORPORATED OR “INC.” – CORPORATION OR “CORP.” – LIMITED OR “LTD.”

CORPORATE DESIGNATION

slide-12
SLIDE 12

11/19/2015 12

Online: https://www.bcregistrynames.gov.bc.ca/nro/ $31.58 + taxes At Small Business BC $50 + taxes by Cash, Interac, Visa or Mastercard $139 + taxes for Guided Name Reservation and Registration Service By mail: to Victoria $31.58 + taxes by cheque or money order to “Minister of Finance” (minimum 3 weeks for results by mail)

NAME RESERVATION FEES

  • Sole Proprietorships and General Partnerships register through

“ONESTOP” service online: www.bcbusinessregistry.ca

COMPANY REGISTRATION – ONE STOP STEP 2 – REGISTRATION – ONE STOP

– Sole Proprietorships and General Partnerships register through “ONESTOP” service: www.bcbusinessregistry.ca

– Company registration - instantaneous – GST Registration with CRA (BN) – PST Registration – Contact directly www.gov.bc.ca – WorkSafe coverage if your company has employees – $40 fee online Visa or MasterCard only – Takes 30 to 45 minutes to complete depending on the number of applications you choose. – Your company will be registered at the end of the session and you are e-mailed a confirmation.

slide-13
SLIDE 13

11/19/2015 13

  • “Do it Yourself” Incorporations register online

with approved NR: www.corporateonline.gov.bc.ca

  • Designed for simple incorporations
  • Purchase Simply Legal Incorporation Kit Special

Edition from Small Business BC Bookstore ($99)

  • Registration Fee online is $350 plus taxes by Visa
  • r MasterCard only

INCORPORATION OPTION #1

  • Hire a Lawyer to do everything for you start to finish
  • Fee is $1000+
  • Designed for complicated

incorporations/complicated ownership/multiple investors/complicated share structures.

INCORPORATION OPTION #2 OTHER COMPANY REGISTRATION OPTIONS…

  • FEDERAL INCORPORATION

– www.nuans.com

  • FEDERAL or INTERNATIONAL TRADEMARK REGISTRATION

– www.cipo.ic.gc.ca

  • DON’T FORGET DOMAIN NAME REGISTRATION FOR YOUR

WEBSITE.

  • Important!

If you are even remotely considering having an online presence for your business, it is highly recommend that you register your domain name as soon as possible. Once registered, you will own the domain name.

slide-14
SLIDE 14

11/19/2015 14

GST rate is 5% + PST rate is 7% = 12% GST

  • Canada Revenue Agency 1-800-959-5525
  • For new registration the mandatory GST

registration threshold is $30,000 in gross revenue PST

  • BC Ministry of Finance 1-877-388-4440
  • www.pstinbc.ca

GST & PST REGISTRATION

  • All businesses including home based require a business

license

  • Your permit to operate your business and engage in specific

business activities at a specified address or location that meets the city’s zoning requirements

  • Application at City or Municipal licensing office (City Hall)
  • Annual fee plus application fee (varies by city)

BUSINESS LICENCE

  • Additional permits, licences, approvals and acts and

regulations may apply to your specific business.

  • A keyword search for information on specific

permits and licences by level of government is

  • available. Search: http://www.bcbizpal.ca
  • Full acts can be found by searching:

http://www.bclaws.ca/

ACTS AND REGULATIONS

slide-15
SLIDE 15

11/19/2015 15

  • All businesses need professional services
  • Legal and Accounting are the primary professional services you

should budget for in your business expenses

  • Accountant’s role is to guide you in the financial success of your

business as well as ensure you are meeting the mandatory CRA reporting requirements

  • Lawyers can advise you with making legal decisions such as

business structure and managing contracts, agreements and

  • ther legal documents
  • Professionals are a part of your team – choose wisely

WORKING WITH YOUR LAWYER AND ACCOUNTANT

  • A no-fault insurance system that protects the employers and

workers who receive benefits. Employers who pay premiums are protected from lengthy and costly lawsuits. Workers are eligible for compensation benefits if they suffer a work-related injury or disease.

  • Personal Optional Protection is offered for partners,

proprietors, and proprietor spouses in a non-limited company.

  • Find out more at: http://www.worksafebc.com/

WORKSAFE BC

  • Risk Management
  • Legal action can cripple a business
  • Identify threats
  • Strategize to confront risks
  • Protect yourself with the right liability insurance
  • Learn more at: http://www.ibc.ca/en/Business_Insurance/

BUSINESS INSURANCE

slide-16
SLIDE 16

11/19/2015 16

QUESTIONS?

Contact: W: www.smallbusinessbc.ca E: field.bridget@smallbusinessbc.ca P: 604-775-5541 | 1-800-667-2272 A: 54 - 601 West Cordova Street, Vancouver BC