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

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 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 1

11/19/2015 YOUR BUSINESS IDEA……. PHASE 1 IDEA PHASE 2 – THE “PAPER NAPKIN” BUSINESS PLAN IDEA PHASE 3 – THE FORMAL BUSINESS PLAN 2

11/19/2015 BUSINESS VIABILITY • 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 PLANNING • 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? 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, objectives, and your ownership structure. 3

11/19/2015 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 4

11/19/2015 MARKET RESEARCH 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? ACCESSING FINANCING 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 RESOURCES 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 5

11/19/2015 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 FREE RESOURCES – HOW TO’S, CHECKLISTS AND LIBRARIES 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 - ELECTRONIC DATABASES FOR MARKET RESEARCH www.vpl.ca/electronic_databases/alpha/r 6

11/19/2015 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 7

11/19/2015 EDUCATION 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… RESOURCES – 1 on 1 ADVISORY 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 – EXPERT ONE TO ONE CONSULTATIONS 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 8

11/19/2015 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 Registered Company – Ideal for Consultants – Can cost $70 to $395 in registration fees – Entitled to the same tax deductions as registered – Is not a provincial government company requirement – No registration costs – It is a financial institution requirement to open a business – Can still obtain a PST/GST/CRA bank account under a name account number under your own other than your own name – Open business bank account – Useful for branding purposes under your own name COMPANY STRUCTURE 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? 9

11/19/2015 INCORPORATION • Advantages • Disadvantages – Limited liability – Closely regulated – Possible tax advantages – Most expensive registration fee ($350+) – Ownership is transferable – Charter restrictions – Specialized management – Extensive record keeping – Continuous existence required – Separate legal entity – Shareholders may be held – Easier to raise capital legally responsible in – Company name protection certain circumstances in the province of BC SOLE PROPRIETORSHIP • Advantages • Disadvantages – Low start-up costs – Unlimited liability – Greatest freedom from – Lack of continuity in regulation business in absence of owner – Owner in direct control of – Difficulty in raising capital decision making – Minimal working capital – No company name required protection in the province – Continuous existence of BC – Tax advantages to owner – All profits to owner GENERAL PARTNERSHIP • Disadvantages • Advantages – Unlimited liability – Low start-up costs – Divided authority – Ease of formation – Difficulty in raising additional – Partners provide additional capital source of investment capital – Difficult to find suitable – Possible tax advantages partners – Limited regulation – Possible development of – Broader management base conflict between partners – Partners can legally bind each other without prior approval – No company name protection in the province of BC 10