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Where to start
Start with an idea that has potential. Find out as much as you can from others: your friends, family, library, other business owners, the internet, and so on. You must convince yourself as well as others that your plan makes sense and is commercially viable. Your enterprise must generate enough revenue to pay the bills and earn a living.
An excellent source of information for starting your business can be found at the Canadian Business Service Centre Web site cbsc.org.
| If you have the courage to begin, you have the courage to succeed. |
Planning and preparation
First, define and analyze your market: is there a need for your product or service? How will you sell it and who will buy it? Who else sells it? How is what you offer different? What is the lifecycle of the product or service – that is, how long will it last and will your clients buy more? Again, be sure to do enough research to prove to yourself and to others that the business will make enough money to cover your living expenses.
Next, prepare a plan showing how much you expect to receive and spend – both how and when. You should include costs for at least the first year, or even 2 or 3 years. Don't forget to include costs such as office space and equipment, advertising, and the like. This will tell you how much money you need to borrow or take from your savings to launch the business.
BDC's business plan is a useful tool that can help you; most entrepreneurs also hire or consult specialists such as accountants or experienced business owners.
| That some can achieve great success is proof that others can achieve it as well. |
The lending process
It is important to analyze the various sources able to provide you with the necessary startup capital such as: 
- Personal Savings;
- Relatives;
- Cash from Partners;
- Venture Capital Companies;
- Investors;
- Banks, Credit Unions, and other financial institutions;
- Government assistance i.e grants.
All honourable men belong to the same tribe.
Indian proverb |
When approaching a bank or financial institution, it's best to be well prepared. It helps to have your business plan and other information prepared by a professional (your accountant or BDC advisor can help). You should prepare: 
- Your business plan;
- Projected balance sheets, income statements, and cash flow statements (optimistic, pessimistic, and realistic scenarios);
- Amount of financing required;
- Detailed list of fixed assets (equipment, land, buildings) you will require, and their cost;
- Amount of security (collateral) you can provide;
- Amount you (and your partners) will be investing personally.
| When you go in search of honey, you must expect to be stung by bees. |
If they say no:
Don't be discouraged; this may be an opportunity. Make an appointment with the account manager, not to change his or her mind, but to find out how you can improve your request for financing. Ask the following questions:
- What factors of the business were not acceptable: the industry, location, products, employees, capitalization, management?
- Where was the proposal weak? How can you improve it?
- What changes would you need to make before submitting your request again?
- Do they finance this type of project? If not, do they have suggestions on where else to apply? Some lenders may prefer a specific type or size of project, or industry, and may say no to an otherwise acceptable plan.
Listen, or your tongue will make you deaf.
Elder's Saying |
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Business Development Bank of Canada
155 Carlton Street
Suite 220
Winnipeg, Manitoba
R3C 3H8
Phone: (204) 983-3594
Fax: (204) 983-8522
Contact Wendy MacNair by e-mail |
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