Tag: start-up

How to Finance Your Start-up Business #business #banners


#how to finance a business

#

How to Finance Your Start-up Business

Making Your Dream a Reality: Finance Your Start-up With the Right Mix of Capital

If you’re planning on starting a business, chances are you’ll need some form of capital, which simply refers to the money that finances your business.

One reason for the failure of many small businesses is that they undercapitalize their business. Therefore, it is important that you know how much money you will actually need to start and to run your business until you reach your break-even point—the point when your sales revenue equals your total expenses.

Ask yourself:

  • How much money is required to start this business ?
  • How much of your own money do you have for this business?
  • Do you already own any of the assets needed to start this business?
  • Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
  • Do you have a strong personal credit rating or lines of credit available?

Equity Investment

Equity means ownership. With equity investment, an investor makes money available for use in exchange for an ownership share in the business. If you use equity investment, be sure to consider how much ownership you’re willing to give up, and at what price. Once you sell 51 percent of your shares, you lose control of your company.

Equity investment includes any money from individuals, including yourself, or other companies in your business. This money may be from personal savings, inheritance, personal loans, friends or relatives, business partners, or stockholders. These funds are not secured on any of your business assets.

But, before going down this road, it is important to know the BC laws that apply to any company or other entity that raises money from investors. To find our more read our article: Seeking Equity Investment? Know the Rules

Personal Savings: The Most Common Form of Equity Investment

You’ll likely get most of your start-up funding from your personal savings, inheritances, friends, or family. In fact, according to Statistics Canada’s Survey of Financing of Small and Medium Enterprises 2007, 76% of small businesses in British Columbia financed their business with personal savings.

Aim to fund 25% to 50% of your business from your own pocket. This shows prospective lenders and investors that you are personally assuming some risk, and are committed to your business success. It’s also a requirement for many small business loans, which are usually secured (i.e. backed by assets).

Throughout the course of your business, try to keep a personal investment of at least 25% in your business to increase your equity position and leverage. The more equity your business has, the more attractive it makes you to banks that can loan you up to three times your equity.

Debt Financing

1. Government Funding

Typically, the most sought-after type of financing is government grants because it’s free money that you don t have to pay back. Unfortunately, a grant might not be an option for your business because not only are there very few grants available, most are geared towards specific industries or groups of people such as youth, women, or aboriginal owners.

The majority of government funding programs are typically loans, for which you ll be required to repay the principal amount plus interest.

In 2007, only 2% of businesses obtained some sort of government funding or assistance. You can find information about government funding programs for free:

  • Search the Canada Business Grants and Finances section. which lists available government programs across Canada.
  • Contact your industry association to find out if they know of any grants you might be eligible to receive.

Since the application process varies from program to program, you should contact the coordinator of the program that you’re interested in to find out what the specific application requirements and process are.

2. Commercial Loans

Commercial or personal loans from financial institutions account for the second most common form of financing at 44%.

  • Long-term loans. Use long-term loans for larger expenses or for fixed assets that you expect to use for more than one year, such as property, buildings, vehicles, machinery, and equipment. These loans are generally secured by new assets, other unencumbered physical business assets, and/or additional stakeholder funds or personal guarantees.
  • Short-term loans. Short-term loans are usually for a one-year term or less, and can include revolving lines of credit or credit cards. These are generally used to finance day-to-day expenses such as inventory, payroll, and unexpected or emergency items, and can be subject to a higher base interest rate.

Getting Your Loan Approved: What do Potential Lenders Look For?

Many lenders will look for the four “C’s of Lending” when evaluating a loan application:

  1. Cash flow. Your ability to repay the cash you are borrowing. This is measured using the cash flow forecast that you created for your business plan.
  2. Collateral. The value of assets that you are willing to pledge for assurance that you will repay your loan. A dollar amount will be placed on these assets and that will be compared to the amount of the loan you requested.
  3. Commitment. The amount of money that you re committing to your business. You can’t expect to obtain a loan without contributing a fair share yourself.
  4. Character. Your personal credit score and history with the financial institution. Your credit rating or score is calculated from your history of borrowing and repaying bank loans, credit cards, and personal lines of credit. Without a good credit rating, your loan prospects decrease significantly.

A lender might determine how much to lend you by evaluating your cash flow, collateral, and commitment. They will then subtract your existing debt to arrive at a final amount. Note that lenders look at the limit on your credit cards, not the amount you re currently using.

Typically, start-ups are not rich in assets so you may be required to secure your business loans with personal collateral such as your house or vehicle(s).

The difference between a private lender and a government program is the relative importance of these four C’s. A bank might place more importance on “collateral” and “commitment”, whereas a government program can often decrease the need for these by providing a government guarantee to the lender.

Make a Good Impression With Your Lenders

You can increase your chances of securing a loan by:

  • Having strong management and staff
  • Showing steady business growth potential
  • Showing reliable projected cash flow
  • Offering collateral
  • Having a strong personal credit rating
  • Always making your loan and interest payments on time, and never missing a payment

Related Articles:

Upcoming Seminars


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Business Loans #business #loans, #business #loan, #small #business #loans, #small #business #loan, #personal #loans,

#

Apply Now

Business Loans

Fast Business Lending Solutions Merchant Advisors offers small businesses a platform for business financing. Whether you need funding for expansion or working capital, Merchant Advisors gets you the business financing you need when you need it at minimal costs.

We understand that every business has its unique borrowing needs. Some may want to make new purchases to boost productivity and sales; some need working capital to support operating costs. That’s why we offer the use of innovative technology to offer simple, fast and unsecured business loans. As a non-bank lender, Merchant Advisors offers low longer terms and low rates for more effective business financing. We realize that if a loan costs too much – we may not get paid back! We prevent this by offering affordable business financing.

Unlike bank lending, our financial experts walk you through the loan process to make sure you have a full understanding of our loan process. We strive to make the loan application process as easy as possible; and this is what sets us apart from other lenders.

A Smarter Way to Shop for Business Loans, Compare & Save! Our goal is to serve our clients’ immediate and long term financial needs from basic business loans and credit lines to the most intricate financial situations. In today’s fast paced market time is money and we make sure you waste neither. Our experienced financial advisors keep their finger on the pulse of your business, and stay on top of your industries trends which can affect your entrepreneurial goals or existing enterprise.

If this sounds like something that interests you & benefits you, we highly recommend you APPLY NOW to get started with no upfront fees and no commitment to find out how much you’re eligible for.

What Sets Us Apart from Other Lenders?

  • We deal with the industry’s most trusted brand name providers
  • Increases your chance of approval by constantly adding new private lenders to our portfolio
  • You get the same (if not better) rate going through us to due to our portfolio track record with our lenders
  • Get a loan for your company without any collateral
  • Receive funding within a few business days!
  • Easiest lending platform with minimal information required for approvals
  • Best rates, save time, and save money!
  • Equipment financing, minority loans, startup funding, working capital many others options.

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Greece – Bulgaria: Call for innovative business ideas of young people (SMART START-UP project)

#innovative business ideas

#

European Territorial Cooperation is an Objective of the Cohesion Policy and provides a framework for the exchange of experiences among local and regional actors from across Europe

Development.

European Territorial Cooperation contributes in the transformation of the European regions into strong economic and social poles through the funding of common projects

The team.

Our officers are responsible for the management of five bilateral cross-border Programmes and the national coordination of the seven multilateral Programmes, Greece is participating in

Vision.

More growth and jobs for all regions of the European Union through the promotion of cross-border, transnational and interregional cooperation

Perspective.

European Territorial Cooperation Programmes enhance economic and social cohesion, encouraging balance development and promoting competitiveness

The Business Information and Consulting Centre – Sandanski announces a call for innovative ideas for start-up or development of business by young people with potential and interest in entrepreneurship, new technologies and innovation. The aim of the SMART START-UP competition is to encourage and motivate young people to generate innovative business ideas with potential for further development.

Detailed information concerning the conditions, deadlines and required documents for application can be found here

Please note that the deadline for submission of business ideas is: 29.05.2015, 17:00

This initiative is carried out within the framework of the Project SMART SPECIALIZATION

Events calendar


European Territorial Cooperation Programmes are co-funded by European Union and National Funds of the countries participating in them

Navigate:

Register in Newsletter:

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7 hot start-up ideas that could make you a millionaire #loans #for #starting #a

#hot business ideas

#

7 hot start-up ideas that could make you a millionaire

L ooking for that perfect business idea? We’ve done the hard work for you.

1. Anything delivered, anywhere

On-demand is already a massive industry with players likes Uber, Netflix and Just Eat boasting exponential surges in revenue.

But in New York, a handful of start-ups have gone one better, offering an “anything delivered, anywhere” service.

Postmates and Seamless are at the forefront of this wave, and can deliver anything from concert tickets to a Big Mac to a needle and thread to their users. The trend has yet to truly hit the UK (certainly outside London), but is likely to be a huge hit when it does.

2. Drink coolers

V arious material technology companies are working on developing drinks coolers that cool your beverage rapidly on contact and keep your fizzy pop, beer or wine cold as you sip. Once a sound, cost-effective material is sourced, the demand from drinks giants, as well as the leisure and hospitality industries, will be vast.

3. The internet of things

T his trend has already begun, but is still in its infancy. Fridges that can text your phone to tell you you’re out of milk; radiators that keep tabs on your whereabouts to ensure that your house warms up on your way home.

Wifi tagging and radio frequency communication technology can be applied to almost any appliance imaginable. If you can think of an innovative reason to get devices talking to one another, the time is now.

4. Become a drop box

H omes and garages could become the drop-off locations of the future, as internet shopping continues to grow apace.

At the moment, UK organisations like TfL are creating lockers where supermarkets can leave goods bought online, but entrepreneurial types with sizeable property portfolios could explore this niche to make the most of their unused buildings.

5. Virtual reality

F acebook spent $2bn on virtual reality headset maker Oculus Rift in March this year – a serious punt on a nascent industry. This has prompted industry pundits to claim that next year will be the sunrise of VR.

Publishers and production companies are already experimenting with games and apps for the new technology. For engineers and coders looking for a lucrative niche, virtual reality could generate impressive real-world returns.

6. Curation tools

T he internet is a noisy place. Apps and tools that help users cut through the hubbub to find the content and products that are most relevant to them are becoming increasingly popular.

The technology giants are ever on the hunt for new curation tools to add to their portfolios. Summly, which allows users to skim headlines on their preferred news topics, was sold to Yahoo! last year, netting its then 17-year-old founder Nick D’Aloisio $30m (£18m).

7. Next-generation 3D printing

3D printers are becoming increasingly accessible to the man on the street. But there is still scope to come up with new applications for the technology.

I n medicine, for example, 3d printers have been used with stem cells to create heart valves and even whole ears.

Manmade food, spare parts, drone accessories and personalised/customised goods are all areas that can be exploited by entrepreneurial types.


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Candle Making Business Start-Up Guide #small #business #insurance


#candle making business

#

Candle Making Business Start-Up Guide

Founding and operating a candle making business makes you both an artisan and an entrepreneur. Are you ready to put your creative skills and business savvy to work to grab a piece of that market? This start up guide provides both the steps and resources needed to launch a candle making business.

Define Your Product Line

Decide what kind of candles you want to make and sell. Your designs are limited only by your creativity and materials, but do yourself a favor and start with a limited product line. A few options include:

  • Candles made into custom shapes, like animals or sports figures
  • Church candles, with colors to match the liturgical seasons
  • Candles with embedded jewels or other treats
  • Unity candles, for use in wedding centerpieces
  • “Good luck” candles

You can also distinguish your product line based on the materials you choose.

  • Make your candles from beeswax, soy wax, paraffin, or gel.
  • Embed ribbons for wicks, inserting them either upright in tall candles, or lengthwise in shallow candles.
  • Make container candles, using barware, antique glassware, shells, or decorative tins.
  • Develop a scent that is all your own.
  • Create specialized colors.

Learn which candles are your best sellers, and expand your product line from there. Whatever design choices you make, be sure to write down all your recipes and formulas. You will need to be able to reproduce your winners to precise specifications.

Set Up Your Workspace

You will need a heat source that does not rely on open flame, a well-lighted workspace, room to set up an assembly process, and adequate storage space for your supplies. You will also need a climate controlled environment for storing your finished candles, as well as an area designated for packaging.

Be sure to purchase the correct type of fire extinguishers, or a fire-suppression system. Hot wax is volatile, and an accidental spill can quickly become a consuming blaze!

Stay Safe and Legal

Become knowledgeable about your city’s zoning laws as you plan your workspace, and stay legal. Because you are working with flammable materials, extra caution is advised. Research your city fire codes, obtain all necessary permits, and speak with your insurance representative. If you should have a fire and authorities determine that your business was operating outside the law, your liability could be great.

Make a List of Supplies

As an accomplished candle maker you may already have a number of your supplies on hand, but you will still need stock up on quantities. Consider the following shopping list of supplies and adapt it as needed.

  • Double boiler
  • Wax
  • Wicks
  • Molds
  • Dyes
  • Fragrances
  • Additives
  • Luster spray
  • A scale
  • Measuring instruments
  • Thermometer
  • Leak-proof containers for candles
  • Packaging materials

Identify and Select Supply Vendors

At first you may elect to purchase your supplies from a local hobby store. As your business grows, however, you will want to seek out quality wholesale vendors. Placing larger orders with select vendors is generally a more cost-effective way to procure supplies.

You will also find that vendors’ new offerings are good indicator of industry trends. Your vendor should also be able to provide the quantities you need, in the timeframe you require. Popular candle making suppliers include:

  • Candlechem offers a broad range of products including seamless molds, braided wicks, warning labels, and more.
  • Candle Making Supplies carries a wide range of waxes, containers, and molds. The company is also known for its palette pricing.

Gain Industry Expertise

Your customers -particularly those who are resellers- will look at you as an expert in the candle manufacturing industry. They will feel more comfortable buying from you, and consequently become more loyal, when they perceive that you “know your stuff.” They will be eager to hear about product trends, fresh marketing ideas, environmental efficiencies, and more. The following organizations can help you to stay on top of industry knowledge.

  • Candle Cauldron has recipes, tips for throwing candle parties, formulas for figuring candle burn times and many other tricks of the trade.
  • The International Guild of Candle Artisans offers information, a gallery of amazing candles, safety tips and a suppliers index.
  • The National Candle Association is a wonderful membership organization devoted to the art and safe use of candles in the home.

Establish Your Business

Just as some aspects of your business relate specifically to product creation, other facets are common across all types of businesses. A few of the steps to starting a small business include:

  • Naming your business
  • Selecting a legal structure
  • Registering your business with both the state and IRS
  • Establishing accounting practices
  • Buying business insurance

Write Your Business Plan

Writing a good business plan is the linchpin to establishing almost any successful small business. You will need to include market research and financial statements, as well as organizing and formatting your plan in a manner that is familiar to potential lenders and investors.

A solid marketing strategy and advertising plan are critical components of any good business plan. Sometimes the marketing plan is written as a component within the business plan, and sometimes it’s a separate document. Be sure to include details, such as the types of media advertising channels you plan to use.

Budget and Finance

It’s no surprise that start-up budgets for candle making businesses vary. Shoestring Profits estimates that you will need an initial investment of only $200-$300, while Entrepreneur suggests a starting budget of $2,000.

Many people fund small start-up businesses out of their own savings or take an advance on an existing credit card. Others seek out investors, lines of credit, government loans. or grants.

Pricing

Once you have accounted for all your expenses and know exactly how much it costs to produce each candle, you will be able to set your sale price. A good rule of thumb is to double your costs and charge that amount to your wholesale or bulk customers. For direct sales you will want to triple your cost.

Check your competitors’ pricing to determine whether your prices are competitive. If your prices are significantly lower, you may want to adjust them upward. If they are slightly higher, you’ll need to explain why your products are worth more. Perhaps your candles burn longer, or cleaner, or feature some other property that your is unique to your brand. People value what they pay for, but your marketing must help them to justify the expense.

Work Smart

Small business owners routinely wear a lot of hats, but no one can be all things to all people. Seek outside help when you need it; build it into your budget, and incorporate it into your pricing structure. It’s okay to hire an accountant or contract with someone to build and maintain your website. That isn’t working less; it’s working smart.

Related Topics


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How to Finance Your Start-up Business #business #development #jobs


#how to finance a business

#

How to Finance Your Start-up Business

Making Your Dream a Reality: Finance Your Start-up With the Right Mix of Capital

If you’re planning on starting a business, chances are you’ll need some form of capital, which simply refers to the money that finances your business.

One reason for the failure of many small businesses is that they undercapitalize their business. Therefore, it is important that you know how much money you will actually need to start and to run your business until you reach your break-even point—the point when your sales revenue equals your total expenses.

Ask yourself:

  • How much money is required to start this business ?
  • How much of your own money do you have for this business?
  • Do you already own any of the assets needed to start this business?
  • Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
  • Do you have a strong personal credit rating or lines of credit available?

Equity Investment

Equity means ownership. With equity investment, an investor makes money available for use in exchange for an ownership share in the business. If you use equity investment, be sure to consider how much ownership you’re willing to give up, and at what price. Once you sell 51 percent of your shares, you lose control of your company.

Equity investment includes any money from individuals, including yourself, or other companies in your business. This money may be from personal savings, inheritance, personal loans, friends or relatives, business partners, or stockholders. These funds are not secured on any of your business assets.

But, before going down this road, it is important to know the BC laws that apply to any company or other entity that raises money from investors. To find our more read our article: Seeking Equity Investment? Know the Rules

Personal Savings: The Most Common Form of Equity Investment

You’ll likely get most of your start-up funding from your personal savings, inheritances, friends, or family. In fact, according to Statistics Canada’s Survey of Financing of Small and Medium Enterprises 2007, 76% of small businesses in British Columbia financed their business with personal savings.

Aim to fund 25% to 50% of your business from your own pocket. This shows prospective lenders and investors that you are personally assuming some risk, and are committed to your business success. It’s also a requirement for many small business loans, which are usually secured (i.e. backed by assets).

Throughout the course of your business, try to keep a personal investment of at least 25% in your business to increase your equity position and leverage. The more equity your business has, the more attractive it makes you to banks that can loan you up to three times your equity.

Debt Financing

1. Government Funding

Typically, the most sought-after type of financing is government grants because it’s free money that you don t have to pay back. Unfortunately, a grant might not be an option for your business because not only are there very few grants available, most are geared towards specific industries or groups of people such as youth, women, or aboriginal owners.

The majority of government funding programs are typically loans, for which you ll be required to repay the principal amount plus interest.

In 2007, only 2% of businesses obtained some sort of government funding or assistance. You can find information about government funding programs for free:

  • Search the Canada Business Grants and Finances section. which lists available government programs across Canada.
  • Contact your industry association to find out if they know of any grants you might be eligible to receive.

Since the application process varies from program to program, you should contact the coordinator of the program that you’re interested in to find out what the specific application requirements and process are.

2. Commercial Loans

Commercial or personal loans from financial institutions account for the second most common form of financing at 44%.

  • Long-term loans. Use long-term loans for larger expenses or for fixed assets that you expect to use for more than one year, such as property, buildings, vehicles, machinery, and equipment. These loans are generally secured by new assets, other unencumbered physical business assets, and/or additional stakeholder funds or personal guarantees.
  • Short-term loans. Short-term loans are usually for a one-year term or less, and can include revolving lines of credit or credit cards. These are generally used to finance day-to-day expenses such as inventory, payroll, and unexpected or emergency items, and can be subject to a higher base interest rate.

Getting Your Loan Approved: What do Potential Lenders Look For?

Many lenders will look for the four “C’s of Lending” when evaluating a loan application:

  1. Cash flow. Your ability to repay the cash you are borrowing. This is measured using the cash flow forecast that you created for your business plan.
  2. Collateral. The value of assets that you are willing to pledge for assurance that you will repay your loan. A dollar amount will be placed on these assets and that will be compared to the amount of the loan you requested.
  3. Commitment. The amount of money that you re committing to your business. You can’t expect to obtain a loan without contributing a fair share yourself.
  4. Character. Your personal credit score and history with the financial institution. Your credit rating or score is calculated from your history of borrowing and repaying bank loans, credit cards, and personal lines of credit. Without a good credit rating, your loan prospects decrease significantly.

A lender might determine how much to lend you by evaluating your cash flow, collateral, and commitment. They will then subtract your existing debt to arrive at a final amount. Note that lenders look at the limit on your credit cards, not the amount you re currently using.

Typically, start-ups are not rich in assets so you may be required to secure your business loans with personal collateral such as your house or vehicle(s).

The difference between a private lender and a government program is the relative importance of these four C’s. A bank might place more importance on “collateral” and “commitment”, whereas a government program can often decrease the need for these by providing a government guarantee to the lender.

Make a Good Impression With Your Lenders

You can increase your chances of securing a loan by:

  • Having strong management and staff
  • Showing steady business growth potential
  • Showing reliable projected cash flow
  • Offering collateral
  • Having a strong personal credit rating
  • Always making your loan and interest payments on time, and never missing a payment

Related Articles:

Upcoming Seminars


Tags : , , , , ,

Start-up business plan template #business #articles


#business plan sample

#

Start-up business plan template

A business plan helps you set goals for your business, and plan how you re going to reach them. It also forces you to think about your finances, your marketing and your team.

When you re starting out it s a good idea to do a full and thorough business plan. This will help you understand the business and industry you re getting into and have a clear vision for the future.

Business plan template

This free downloadable business plan template can help you structure your business plan and give you ideas about what to write in each section.

Sections in this business plan template include:

  • Business strategy
  • Marketing
  • Team and management structure
  • SWOT and success factors
  • Market research and analysis
  • Financial budgets and forecasts

Customise the template to suit your business, and what you re using it for this could mean adding in extra sections, or cutting out ones you don t need.

More information:

Related Topics


Tags : , , ,

How to Finance Your Start-up Business #sba #loan


#how to finance a business

#

How to Finance Your Start-up Business

Making Your Dream a Reality: Finance Your Start-up With the Right Mix of Capital

If you’re planning on starting a business, chances are you’ll need some form of capital, which simply refers to the money that finances your business.

One reason for the failure of many small businesses is that they undercapitalize their business. Therefore, it is important that you know how much money you will actually need to start and to run your business until you reach your break-even point—the point when your sales revenue equals your total expenses.

Ask yourself:

  • How much money is required to start this business ?
  • How much of your own money do you have for this business?
  • Do you already own any of the assets needed to start this business?
  • Do you have family, friends, acquaintances, or others who are willing and able to invest in this business?
  • Do you have a strong personal credit rating or lines of credit available?

Equity Investment

Equity means ownership. With equity investment, an investor makes money available for use in exchange for an ownership share in the business. If you use equity investment, be sure to consider how much ownership you’re willing to give up, and at what price. Once you sell 51 percent of your shares, you lose control of your company.

Equity investment includes any money from individuals, including yourself, or other companies in your business. This money may be from personal savings, inheritance, personal loans, friends or relatives, business partners, or stockholders. These funds are not secured on any of your business assets.

But, before going down this road, it is important to know the BC laws that apply to any company or other entity that raises money from investors. To find our more read our article: Seeking Equity Investment? Know the Rules

Personal Savings: The Most Common Form of Equity Investment

You’ll likely get most of your start-up funding from your personal savings, inheritances, friends, or family. In fact, according to Statistics Canada’s Survey of Financing of Small and Medium Enterprises 2007, 76% of small businesses in British Columbia financed their business with personal savings.

Aim to fund 25% to 50% of your business from your own pocket. This shows prospective lenders and investors that you are personally assuming some risk, and are committed to your business success. It’s also a requirement for many small business loans, which are usually secured (i.e. backed by assets).

Throughout the course of your business, try to keep a personal investment of at least 25% in your business to increase your equity position and leverage. The more equity your business has, the more attractive it makes you to banks that can loan you up to three times your equity.

Debt Financing

1. Government Funding

Typically, the most sought-after type of financing is government grants because it’s free money that you don t have to pay back. Unfortunately, a grant might not be an option for your business because not only are there very few grants available, most are geared towards specific industries or groups of people such as youth, women, or aboriginal owners.

The majority of government funding programs are typically loans, for which you ll be required to repay the principal amount plus interest.

In 2007, only 2% of businesses obtained some sort of government funding or assistance. You can find information about government funding programs for free:

  • Search the Canada Business Grants and Finances section. which lists available government programs across Canada.
  • Contact your industry association to find out if they know of any grants you might be eligible to receive.

Since the application process varies from program to program, you should contact the coordinator of the program that you’re interested in to find out what the specific application requirements and process are.

2. Commercial Loans

Commercial or personal loans from financial institutions account for the second most common form of financing at 44%.

  • Long-term loans. Use long-term loans for larger expenses or for fixed assets that you expect to use for more than one year, such as property, buildings, vehicles, machinery, and equipment. These loans are generally secured by new assets, other unencumbered physical business assets, and/or additional stakeholder funds or personal guarantees.
  • Short-term loans. Short-term loans are usually for a one-year term or less, and can include revolving lines of credit or credit cards. These are generally used to finance day-to-day expenses such as inventory, payroll, and unexpected or emergency items, and can be subject to a higher base interest rate.

Getting Your Loan Approved: What do Potential Lenders Look For?

Many lenders will look for the four “C’s of Lending” when evaluating a loan application:

  1. Cash flow. Your ability to repay the cash you are borrowing. This is measured using the cash flow forecast that you created for your business plan.
  2. Collateral. The value of assets that you are willing to pledge for assurance that you will repay your loan. A dollar amount will be placed on these assets and that will be compared to the amount of the loan you requested.
  3. Commitment. The amount of money that you re committing to your business. You can’t expect to obtain a loan without contributing a fair share yourself.
  4. Character. Your personal credit score and history with the financial institution. Your credit rating or score is calculated from your history of borrowing and repaying bank loans, credit cards, and personal lines of credit. Without a good credit rating, your loan prospects decrease significantly.

A lender might determine how much to lend you by evaluating your cash flow, collateral, and commitment. They will then subtract your existing debt to arrive at a final amount. Note that lenders look at the limit on your credit cards, not the amount you re currently using.

Typically, start-ups are not rich in assets so you may be required to secure your business loans with personal collateral such as your house or vehicle(s).

The difference between a private lender and a government program is the relative importance of these four C’s. A bank might place more importance on “collateral” and “commitment”, whereas a government program can often decrease the need for these by providing a government guarantee to the lender.

Make a Good Impression With Your Lenders

You can increase your chances of securing a loan by:

  • Having strong management and staff
  • Showing steady business growth potential
  • Showing reliable projected cash flow
  • Offering collateral
  • Having a strong personal credit rating
  • Always making your loan and interest payments on time, and never missing a payment

Related Articles:

Upcoming Seminars


Tags : , , , , ,

Start-up business plan template #how #to #start #a #business


#business plan sample

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Start-up business plan template

A business plan helps you set goals for your business, and plan how you re going to reach them. It also forces you to think about your finances, your marketing and your team.

When you re starting out it s a good idea to do a full and thorough business plan. This will help you understand the business and industry you re getting into and have a clear vision for the future.

Business plan template

This free downloadable business plan template can help you structure your business plan and give you ideas about what to write in each section.

Sections in this business plan template include:

  • Business strategy
  • Marketing
  • Team and management structure
  • SWOT and success factors
  • Market research and analysis
  • Financial budgets and forecasts

Customise the template to suit your business, and what you re using it for this could mean adding in extra sections, or cutting out ones you don t need.

More information:

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10 great start-up business ideas to launch in weeks: Starting a business advice and

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10 great start-up business ideas to launch in weeks

Take a look around you this morning as you drive or catch the train to work.

From the window cleaner who arrives on your street as you close the front door behind you to the coffee cart serving cappuccinos and lattes at the station, the world is full of thriving and profitable small businesses that have been set up for relatively little initial outlay.

These are not ‘clever’ businesses trading on the strength of innovative new products and nor do they require the backing of deep-pocketed investors to get them off the ground. They succeed because their owners are responding to genuine demand for tried and trusted services.

And with a low initial outlay and overheads, many of these small-scale ventures can be profitable within weeks or months and over time provide their owners with a good income.

So how do you get started? Well, to give you an idea of how it’s done, here are 10 great businesses ideas I’ve come across that you can get up and running within weeks.

1. Mopping up – household cleaning

The lower your outlay, the faster you turn a profit and that’s one of the big attractions of launching a domestic cleaning business. For instance Millie Dark, founder of Sussex cleaners, Mrs Muscle started her company with no real investment. “My customers supply all the equipment and cleaning products,” explains Millie.

Millie worked part-time for a few months before advertising in the local press and word-of mouth generated enough work to go full time. Today she employs 12 part-timers. “It’s taken me a couple of years to get that stage,” she says.

2. On cloud K9 – dog walking

A dog walking and pet sitting service can also be set up with minimal investment. For instance, when Catherine Cleaver started her business – Catherine’s Pet Services – all she needed was £500 for a couple of garden kennels.

Catherine placed a few ads in shop windows. Over time – and with the help of word of mouth recommendation and ads in the local magazine – what started as a part-time activity became a full time job.

“I was earning enough to live on after about three months,” she says “and after about a year I felt I had a sustainable business.” She succeeds by offering a range of services, including dog walking, pet visits and boarding.

3. Cutting it – home hairdressing

Many hairdressers dream of starting their own businesses but are deterred by the cost of renting a salon. Setting up a home visit service can be an ideal way forward.

There is a significant outlay on brushes, tongs, dryers, mirrors and products. “You’re talking several thousands rather than hundreds,” says Ela Lapus, founder of Home Hair and Make Up.

“And customers expect to see the same products they find in a salon. Customers will also expect evidence of recognised skills. I have Level 2 and Level 3.”

The key to profitable success is effective marketing. Hairdressers can use local ads and web directories to publicise their services. Social Media can also be effective. “About 50% of my work comes through Facebook,” says Ela.

Once the initial investment had been made Ela was able to start earning immediately but the present business, operating across several counties has taken a number of years to build.

4. A caffeine hit – mobile coffee bar

We’re a coffee hungry nation and beyond Starbucks and Costa there are thousands of small mobile barista carts selling lattes on the go.

“A coffee maker will cost about £5,000,” says Beth Baxter, co-founder of Camper Cafe. “And then you have to pay for the cart or a van to put it in.”

Prices vary but carts or trailers can cost anything between £5,000 and £10,000. The founders of Camper Cafe were given a Volkswagen van which they kitted out to become their visual signature. Training is an additional cost. Courses for coffee making can be had for between £50 and £200.

Finding pitches is the most challenging aspect as you are often in competition with other vendors. “It took us a year to find out about the market,” says Beth. “After that we took off.”

5. Juiced perfect – mobile juice bar

The rise of coffee carts has been matched by the emergence of juice bars in markets, shopping malls, public thoroughfares and events. The set-up costs are similar to coffee in terms of equipment and training.

6. Bright idea – window cleaning

If you have a car with a roof rack you can start a window cleaning business for a few hundred pounds (bucket, ladder, clothes, etc).

Alternatively you might invest in high pressure pure water sprays, water tanks (around £2,000) and a van to carry them (say £15,000). This is increasingly common.

The challenge then is to build a customer base and that tends to be up close and personal. “Initially the most effective way to do it is to knock on doors and ask,” says Guy Lupton, co-founder of Khameleon Window Cleaning Ltd.

Building a solid base can take time. “We spent about three years of trial and error to get it right,” says Guy. “We’ve been going about five.”

However, when you do get it right the business can grow rapidly. “We still knock on doors,” says Guy. “But we get a lot more business by word of mouth.”

7. Showing drive – ‘Man in a Van’ business

Advertisements for ‘Man in a Van’ and ‘Light Removals’ services are a common sight on shop window advertising boards.

The pre-requisite is a van, probably a Luton-style box van with a tail lift and that’s also the main expense. You’ll need public liability insurance (as is the case for all the businesses listed here). The ongoing costs include petrol, servicing, MOT, and repairs.

The main challenge is building a customer base and most operators use flyers, shop window ads and online directories. Man or woman in a van businesses can be quick to establish but work is required to build a market and perhaps the biggest challenge is getting the pricing right.

8. Highest bidder – an eBay business

Launching an eBay business allows you reach a national and occasionally an international market. You can auction goods or sell at a fixed price.

Most eBay businesses will pay at least £19.99 per month as a subscription fee (rising to £59.99 for a featured shop and £349 for an ‘Anchor Shop’) and on top of that you will pay fees for each auction or fixed price insertion and each sale.

To succeed on eBay you usually have to find goods that can’t be bought elsewhere or offer popular products at knock-down prices. For some it’s a part-time source of pin-money, for others a full-time business. Posters on eBay include Nasty Gal and six years after starting to sell vintage clothing on the auction site it’s now a £60m business .

9. A gem of a business – jewellery and crafts

Many small businesses are based around the skills of their founders. For instance, if you have training as a jeweller or sculptor, an obvious way to sell your work is to market direct to the public via web, craft fairs or through shops.

Tools can cost anything from a few hundred to many thousands of pounds but you can keep costs down by working from a home studio. Ongoing costs include materials, rental at craft fairs (from as little as £20 per day to more than a £1,000).

Jane Faulkner, a jeweller based in Sussex, sells via the web and craft fairs while also having shelf-space in a local co-operative (Billingshurst Creatives) where craftspeople and artists can display their goods in return for taking turns manning the store.

“Craft fairs are my biggest source of income while the shop provides a regular cheque every month,” says Jane. Teaching is also part of the business.

With these revenue streams Jane feels she has a sustainable business, but it has taken around eight years to establish.

10. Snappy work – photography

Photography is another skills-based business. Go to almost any event – from music gigs to vintage car rallies and weddings and you’ll find photographers hard at work.

As Art Hutchins, a freelancer photographer trading as Artseye points out, it’s a business that requires investment in time and money. “Being a serious pro photographer requires a high level of financial investment in good quality equipment and time to acquire the knowledge and skill to use it.”

Starting from scratch would mean buying pro-quality cameras (around £2,000) lenses (£100-£1,000), tripods and lights but many photographers who set up their own businesses will already have acquired some of the equipment over time.

According to Art Hutchins, the best approach is to decide on a target market – in his case small businesses, editorial and family portraits. “The best marketing is word of mouth,” he says.

Very different businesses but all can be started quickly and easily using readily available equipment or existing skills. Importantly most of these businesses take payment either at the point of sale or soon after and that’s great for cashflow.

Demand is there but the key is to market effectively and at the right price.

John Fagan is the head of RBS branch business, England Wales and direct banking. His team work with businesses to build a bigger support network inside the bank and beyond with partners and fellow customers. www.rbsbusinessconnections.co.uk

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