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Startup Money for Newcomers

Presented by Roger PierceNewcomerStartup.com

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You’re starting a business! 3 Million Canadian Entrepreneurs

Most respected occupation You’ll need some money:

Poor cash flow kills startups

Congratulations!

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Startup Budget:◦Capital (equipment, renovations, website, vehicles)

◦Operating (rent, wages, marketing, telephone, supplies) x 6 months

How much money?

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Write a Business Plan Know your number

◦(Startup Budget) Decide how you will repay

◦Loan?◦Investment?

Know your options Be prepared for rejection

Before you shop for money

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Your money!

Savings Part-time job(s) Loans, credit (be careful) Consult financial advisor

Money source # 1

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Family & Friends

Loan or investment? Don’t take too much

Money source # 2

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Financial Institutions

Need a Business Plan Personal Guarantee Invest some of your $ Shop around

Money source # 3

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Government Programs

Grants & Contributions (e.g. Book Fund)

Loan guarantees (CSBF Program) Wage subsidies Tax refunds and credits (SRED; 35%) www.canadabusiness.ca

Money source # 4

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Investors

Angel investors are other businesspeople

Venture capitalists are professional investors

Business plan, great pitch essential

Money source # 5

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Customers & Suppliers

• Get money early from customersDeposits, retainers, full payment

• Pay suppliers laterCredit account, generous terms,

inventory upfront

Money source # 6

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Good Paper makes Good Friends Shop around Research, referrals Combine sources of money Persevere

Tips

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Bootstrap Underestimate revenue, over-estimate expenses

Start slowly Start small

Need less money

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Startup Money for Newcomers

THANK YOU!Free advice at

NewcomerStartup.com