Author - Business Development Bank of Canada |
Publication Date - 1996-03-01 |
Whether you need a loan to finance a start-up or expansion, a key first step is the preparation of your business plan. Be sure that your plan fulfills the following requirements:
In preparing your business plan, be sure to attach relevant documents that can help you strengthen your approach to potential lenders. The following documents are especially useful:
Preparing a business plan takes a great deal of time and energy but it will increase your chances of obtaining a loan. In preparing your plan, make sure you prepare a realistic estimate of your financing needs. Operating on a shoestring may unnecessarily constrain the growth of your business, while saddling it with too much debt can also cripple it.
In preparing your business plan, you may wish to take advantage of some of the services provided by the Business Development Bank of Canada. These include a seminar on How to Prepare a Business Plan, the personal advice and assistance of a CASE counselor, and the Bank's Do-It-Yourself kits on how to prepare a business plan or financing proposal.
Women
create businesses for many reasons. Some are similar to those which motivate men. For example, like men, women become entrepreneurs as a way of gaining more control over their lives.Some factors, however, are specific to women. Many still encounter attitudes that prevent them from achieving their full potential in the corporate world. Some women need more flexibility to reconcile the competing claims of career and family. Seventy percent of all self-employed women have children. For these women, child care, spending time with their children, and sharing family responsibilities are serious concerns.
Entrepreneurship offers women important rewards and advantages. As a result, there has been an astonishing growth of self-employment among women. Statistics Canada reports that between 1975 and 1986 the number of self-employed men grew by 39.1 percent. Over the same period, the number of self-employed women grew 117.7 percent. By 1986, 27 percent of all self-employed Canadians were women, up from 19 percent a decade earlier.1
Self-employed women tend to concentrate on certain industries to a greater extent than men do. In 1986, nearly 42 percent of all self-employed women worked in personal and household services and another 18.9 percent were active in retail trade. About 8.5 percent of all self-employed women were involved in agriculture and only about 6 percent were engaged in manufacturing, construction, transportation, or communications. A negligible number were involved in primary industries such as fishing, logging, or mining.
Whatever sectors of the economy women entrepreneurs choose to enter, at some point they will need to finance their venture. This brochure has been written specifically for women as a quick guide to external financing for a small business at any stage of its development.
1 Enterprising Canadians: The Self-Employed in Canada (Statistics Canada, 1988)
Our successful financing was the result of a well-prepared business plan and a "good business proposition" that corresponded to ACOA objectives for economic development in the region.
Based in New Brunswick, Claudette has successfully pursued a new product strategy. Her company manufactures wooden vanities and cultured marble vanity tops. By addressing the needs of a relatively small but underserved market, and by manufacturing close to the target area, she has been able to capture a significant market share in Eastern Canada, outperforming even larger and better-established suppliers.
Starting the new company was expensive, but Claudette financed it from the proceeds of two previous businesses. The costs of expansion in the second year were covered with the assistance of the Atlantic Canada Opportunities Agency.
Before seeking additional financing for your business, it is important to determine the amount you need, why you need it and how you intend to use it. The following questions may help you decide if external financing is the best choice for your company. They may also help you in preparing your financing proposal.
Seeking growth through financing when your track record is relatively unproven is not only difficult, it can be fatal - if you spend too much time looking for money instead of running your business.
Helen is co-owner and co-founder of an Ontario bottled water company which she runs with her husband. After two-and-half years spent on preparation, the business grew quickly. Since it is near the U.S. border, their strategy is to develop new markets in the United States. To help them succeed in this market, they have hired a Director of Sales and Marketing for the U.S. and have taken on a first-class distributor with a proven track record in specially beverages.
Helen and her husband were assisted by an BDC CASE counselor who analyzed their business plans and financial needs. As in the case of most emerging companies, the financing available for expansion was limited. Helen discovered that there was funding available from the Federal and Provincial Governments under the FedNor, NODC and NORDEV programs. The time invested in securing these funds did prove fruitful.
Many women use personal assets as the main source of funding when they start up a business. Personal asset financing often goes hand in hand with a decision to start small and grow at a pace the owner can manage and afford. Personal assets can include:
While some women use personal assets by choice, others may have no alternative. You may have difficulty obtaining small business loans because of the nature of your business or the size of the loans you are seeking. For example, small new businesses or businesses focused on retail services may have little collateral in the form of fixed or movable assets to offer as security to lenders. They may not have been in business long enough to build up a credit history and therefore a credit rating. Finally, small loans can be difficult to obtain because many lending institutions find them less profitable since it takes a lender just as much time to negotiate and manage a small loan as it does a large one.
Capital is essential to small business growth and success. In fact, undercapitalization is often a major factor contributing to the high failure rate of firms during their first years of operation. If your personal assets are insufficient to fund a business or if you prefer not to use them, you may consider other sources of financing such as:
Though many businesses finance startup or expansion from personal assets, sooner or later virtually all business owners need assistance from a financial institution. It is difficult to do business without ever using credit. You may need to finance a shipment of raw materials, build up your inventory, fill a need for working capital during a slow season, or purchase a piece of equipment. In making the decision to seek external financing, be sure your business is solid enough to carry the burden of a loan.
In addition, be prepared to accept the additional managerial responsibility a loan can entail. You will have to prepare a business plan and a financial proposal, you will have to search for an appropriate lender, and you may have to keep more detailed financial records to satisfy additional reporting requirements.
There are two main types of financing: equity and debt. Equity financing involves selling part of your company to a prospective investor who would then receive a proportional share of its profits. In the cases of many smaller companies, such a transaction may be equivalent to taking on additional partners. In larger companies, it may involve public share issues on a stock exchange. It is far more common, especially among smaller companies, to secure external financing in the form of debt.
At this stage, I enjoy having my own business because I can come and go as I please. I am able to accomplish many things, I wear many hats, and use all my skills.
Dawn, the owner of an office service business in Winnipeg, likes to keep her company small. She offers a full range of administrative services and secretarial support "as you need it." The company has become highly successful because Dawn has the hands-on control needed for customized service. Having an entrepreneurial background, Dawn is also able to act as consultant to the executives who use her office services.
Dawn chose to keep her company small because she wants to continue being self-financing. She has not looked for external financing but has used other services of the BDC to stimulate her business. Her accounting and managerial background keeps her consultancy needs to a minimum and she finds that as Treasurer of the Winnipeg Women's Network she has access to many helpful contacts and a lot of support.
An understanding of how lending decisions are made will help you when the time comes to negotiate financing. If you know what questions are likely to be asked, you can prepare appropriate material in advance. For example, you should be ready provide all the relevant and required information specific to your business. In addition, you should be able to discuss your proposal within the framework of the lender's decision-making criteria.
If you have never dealt with commercial lenders, do not let inexperience deter you. Use this booklet as a guide in drawing up your proposal. A good first step might be to get advice from someone who has dealt successfully with external financing, particularly another business owner.
Financial institutions lend money to individuals and to commercial enterprises at a specified rate of return. Remember that banks need to make loans in order to survive; that is their business. You are a customer and a loan is a commodity for which you are paying. Remember too that there is no shortage of banks. So just as you would shop around when making a major purchase, you should shop around for your financial institution and your lender.
Different institutions have different lending policies and orientations towards small businesses. The same goes for individual loans officers and managers. Some may not have targeted the small business sector as a priority and may be more conservative when it to approving lending proposals for such firms. Others who are geared specifically to this type of business may be more receptive to your proposal. Some individual lenders are more prepared to take risks than others; some are more helpful than others.
You should look around carefully for financial institutions that are supportive of small business. The next step is to find a lender whose policies coincide with your business needs. Having compatible business goals will increase the potential for a good business relationship. Use as much care in choosing a lender as you would in choosing a business partner. And when you come face to face with a potential lender, project self-confidence and a positive attitude toward your business.
Despite the growing number of women entrepreneurs and their reported success rate, you must be prepared for the possibility of a refusal based on discrimination alone. Instances negative and biased reactions may still occur. Even when supported by well-prepared business plans and financing proposals, applications by women may still fall prey to sexism. If it happens, remember that discrimination has no place in a modern business environment. It is both illegal and self-defeating. Take your business to one of the many institutions that are ready to give your proposal a fair hearing, and above all, do not be deterred by discrimination.
The criteria used to evaluate loan applications may vary from one lending institution to another. Once you have drawn up a short list of prospective lenders, it may be advisable to visit them all to find out exactly what each is looking for in a financing proposal. At the same time, pick up any guides or kits published by these institutions to help you prepare your loan application.
Learn all you can about the different types of financing available. Be careful to select the type that best suits your company's needs and its repayment abilities.
Generally for less than a year, short-term financing is used to provide working capital for operating expenses, to tide a company over seasonal slack periods, to build up inventory, or to finance accounts which are due but not yet paid (accounts receivable). Another form of short-term borrowing is the line of credit under which the borrower has access to a specified maximum amount of capital at any time that it is needed. Commercial banks are the most popular source for short-term financing. Security for such loans usually consists of current assets such as receivables or inventory.
Usually issued on a short-term basis, demand loans have no fixed repayment schedule. They can be used for virtually any purpose and are provided at floating interest rates which change according to fluctuations in the prime rate set by the chartered banks. As the name suggests, demand loans are payable "on demand" to the lending institution, normally a chartered bank.
Medium-term financing usually covers a period of between one and five years. Such funds are used to expand operations, purchase new assets (such as equipment or vehicles) or to improve existing facilities. This type of debt financing is provided by commercial banks, trust companies, various term lenders such as the BDC, and sales finance companies. The security required usually takes the form of some part of the company's assets. Because of the period of the loan, be sure that its terms and conditions are related to the useful life of the assets being purchased. For example, a piece of equipment with a useful life of five years would not normally be financed over eight.
Issued for periods in excess of five years, long-term financing is used to acquire high value assets such as land, buildings, equipment, or businesses. Long-term financing is available from chartered banks, life insurance firms, trust companies, mortgage institutions, or specialized lenders such as the BDC and Provincial Development Corporations. As with medium-term financing, long-term loans are usually secured by fixed or movable assets such as land, buildings, and equipment.
Bridge financing provides a temporary infusion of capital to cover the start of a project until longer term funds, subsidies, grants, or loans are actually received by a company. Chartered banks are the normal source for this kind of financing but it is also provided by the BDC.
Remember that loans are not the only type of financing available. For larger projects with longer time frames or additional skill requirements, you may be better off looking for an investor willing to inject capital into your company in return for a share in its ownership and profits. Venture capital is a source of equity investment.
This type of financing is especially appropriate for high-risk ventures where the costs of a loan might be prohibitive. It is also suitable for rapidly growing ventures which may quickly exhaust available bank financing as they expand. Equity investment can also serve as a source of additional managerial advice and expertise for your company, since many investors want to be closely involved with their investment. An BDC CASE officer can advise you on whether or not equity investment is appropriate for your business.
The lender (or investor) will want to be satisfied that your business is sound and that you understand it. You will demonstrate this both in your business plan, and in the preparation of your financial proposal. The proposal should answer questions that the lender will have about you as the owner and about your proposed business or business expansion. It should be given to the lender a few days before the date set for detailed discussion of the loan. You can even submit your proposal to several financial institutions at the same time and use this as a negotiating tool to get the best terms possible.
You may wish to engage an accountant to assist you in preparing your financing proposal. You may also wish to take your accountant along to your first formal meeting with a prospective lender. Keep in mind that the purpose of this meeting is to discuss your proposal and, if it is approved, to arrange the terms and conditions of the loan.
Remember that the loan interview is a business transaction. You are doing business as you would with a customer or supplier. The lender or investor is in business for the same reason that you are - to make a profit.
Often business owners are so anxious to have their applications approved that they don't bother to question the terms and conditions of the loan. In fact, many of the terms and conditions of a loan are negotiable. The following are just some of the items which are open for discussion:
In preparing to negotiate, find out about rate structures and fee requirements. You can do this by talking with other business owners, by approaching lenders informally, by attending financing seminars, or by reading the material published by financial institutions.
In 1982, just prior to the economic downturn, it took a lot of effort to get a bank loan. My advice is to be careful about overextending yourself in times when financing is harder to get.
Doreen, a Vancouver-based entrepreneur, specializes in promotional products and services. She built her business by identifying a market niche and acquiring companies that would allow her to control every step of the process from advising the client to final delivery of the product including manufacturing. When the banner and flag side of her activities grew, she bought the company that supplied her with flags and promotional items, and then acquired a company that manufactured them!Initially, Doreen financed her business through personal assets. Early success led to good profits which she reinvested in the company. This allowed her to purchase a building for her operations. In 1982, when she needed a loan to build a manufacturing plant, she did succeed in getting one, but not without difficulty. "Of course there are lots of problems," Doreen says, "but I feel good about the achievement that comes from solving them."
Lenders use certain criteria in evaluating loan proposals. These criteria - collateral, capacity to repay, conditions in the economic environment and character of the owner are often referred to as "the four Cs of credit."
Before granting a loan, especially to a new business which has no proven track record, lenders want ample security for their loans in case the business fails. Collateral is property pledged by the borrower to protect the interests of the lender. The fixed assets of your business, such as the land or the building, could be used as collateral. Where no such fixed asset exists, the lender could demand personal collateral, such as your home.
The security value of your collateral may vary substantially from the book value or acquisition cost. Also, financial institutions often ask for personal guarantees in addition to collateral, especially if the business is incorporated. A personal guarantee is viewed as an indication of your commitment. In addition, small business owners are often asked to have a co-signer or guarantor for the loan.
Lenders want to know how a loan will be repaid. They look at your income and cash flow projections for evidence of earnings that will support the loan. Your projections of sales and costs must be realistic. If your lender feels that your sales forecasts are too optimistic, you will be asked to revise them. The lender will use the standard financial ratios for your type of business to ensure that your projections are more or less in line with the norms for the industry.
The lender will assess the economic climate for the type of business you are proposing. You should include in your proposal a section describing growth in the industry, competitor weaknesses, or the gap in the market that your business will fill. The hard economic facts you present, and your own assessment of the economic climate for your type of business should persuade the lender that promising opportunities are available to your business.
Finally the lender assesses you and your potential as an entrepreneur. Though somewhat intangible, this is an area to which many lenders attach a great deal of weight. How well do you understand your own business, its pitfalls and its potential? Do you display obvious entrepreneurial qualities such as dynamism, creativity or business acumen? Are you likely to be a reliable business partner? Some of these qualities will be reflected in the way in which you prepare your business plan and financial proposal. Some will be projected during your negotiations with the lender. Remember that your best strategy is to prepare yourself thoroughly and if there are areas that you are unsure of, seek out the advice of experienced professionals.
Perhaps the most important question lenders will seek to answer is how committed you are to your own business. They will be unwilling to lend unless they see that you yourself have invested both time and money in the venture. Though there are no hard and fast rules about what constitutes an appropriate level of personal investment, you should be prepared to offer some details about how much of your own money and time you have put into your company. Evidence of a serious personal commitment on your part will enhance your financing potential in the eyes of the lender.
Many other factors may influence the lender's response to your financing proposal. These may include the institution's policies, the nature of your business, personal attitudes, and your own persistence.
Some financial institutions are known as "big business lenders" and, as such, they may be less receptive to your proposal. Feel free to ask up-front what their policy is on small business financing. Many consider small business to be too risky. It may be costlier to service a small business loan than a large one in terms of time and value. Finally, the lending institution may already have as many small business loans as it can handle.
A financial institution may occasionally hold back on loans to certain industry sectors. For example, a series of defaults or loan calls in restaurant accounts may cause a particular lender to temporarily reduce lending activity in that sector, no matter how attractive your proposal may be. In this case, look for a lender that is not experiencing this problem.
A lender who is not familiar with the type of business you have in mind may turn down your loan request. Women may have to educate male lenders about the business they are proposing, especially if it happens to fall into a traditionally feminine category. Owners of service-oriented firms sometimes have difficulty obtaining loans because of the intangible nature of their business. Many lenders have difficulty assessing businesses that have no inventory or fixed assets. Remember too that some businesses are simply too high-risk for financial institutions and might be more suited to venture capital or other forms of private investment.
Requests for financing are sometimes denied simply because the borrower has not prepared a business plan for the business or for its specific financial requirements. By preparing a business plan and a financing proposal, you will give the lender something tangible to refer to and will oblige him or her to respond as objectively as possible.
Try to find a lender with whom you feel at ease. You may find that you are satisfied with a financial institution but not with the attitude of its representative. In that case, try another branch office. Some women seek out women lenders who might be more empathetic in considering their proposals. Remember, however, that lending institutions need to make loans in order to stay in business. Sometimes, the most effective response to unsatisfactory treatment or a hostile attitude is simply to take your business elsewhere.
If your proposal is refused, ask for the specific objective reasons. Do not accept reasons such as "We just don't want to do it." or "We don't think it will work." By finding out why you were refused you can determine if it is worth changing the proposal, and if so, what you have to do to make it acceptable. Alternatively, you may decide to look elsewhere for financing.
It may well be that there are serious flaws in your proposal, or incorrect assumptions which may adversely affect the outcome of the business venture. Use the lender's assessment of the proposal as feedback to help you to identify and correct any weaknesses in your plan. If certain changes (more market research, more collateral, further injection of investment capital, revision of sales forecasts) will make the proposal acceptable, decide if you are willing to make the changes suggested. If so, get the lender's assurance that your proposal will be accepted once you have complied with these requirements.
New technologies and new forms of business cooperation have created a world of opportunities and women are poised to take advantage of them. Credit or investment can be a key to realizing these opportunities. Appropriate financing can help to expand your operations, improve your efficiency and increase your profitability. It can serve as a powerful tool to help you realize your long-term objectives. Regardless of the financing options or sources you choose, the BDC stands ready to help with a wide range of information, advice and services to help you satisfy your financial and other business requirements.
Through this publication, the Business Development Bank of Canada extends its best wishes for every success in your business and its financing.
The Bank provides business people with training and individualized counseling tailored to their needs. Approximately 30 business people meet monthly for workshops run by experts, on topics chosen by the participants. A project coordinator then visits their firms to discuss practical applications.
The BDC offers half and full-day seminars on more than 20 topics, including Starting a Business, Time Management, How to Prepare a Market Study, Exporting Your Product, How to Understand Financial Statements, How to Prepare and Use Forecasts, Effective Cash Management, How to Arrange Financing, and Motivating Your Personnel.
As part of its business management seminars, the BDC offers a number of training sessions designed to deal with the specific concerns of women.
Winning Strategies for Women is a seminar specifically focused on women entrepreneurs and is designed to help them develop effective negotiating skills. Topics of discussion include assertiveness, effective communication, negotiation and dealing with tricky tactics.
The six-hour Women in Management seminar is based on a case study in which problems commonly faced by women entrepreneurs are examined. Topics include management functions, roles and stereotypes, occupational behaviour, power and leadership, and resolving employee problems. Its purpose is to help participants develop creative and practical solutions to common problems.
Minding Your Own Business is a series of pocketbooks that discuss important aspects of running a small business successfully.
Assistance to Business in Canada (ABC) Books offer a comprehensive reference to federal, provincial and territorial government assistance programs for small business.
Do-It-Yourself kits prepared by the BDC assist users in understanding basic business principles and putting them to practical use. They include work sheets, planning charts, checklists, and statement forms. Kits are available on Arranging Financing, Forecasting and Cash Flow Budgeting, Analyzing Financial Statements, Evaluating the Purchase of a Small Business, and Credit and Collection Tips.
For further information on BDC services or a use of BDC publications, get in touch with the BDC office nearest you. You can find out where it is by writing to our Montreal headquarters or calling our toll-free line:
Business Development Bank of Canada
800 Victoria Square
Tour de la Place-Victoria
P.O. Box 335
Montreal, Quebec H4Z IL4
Tel: (514) 283-5904
Toll-free: 1-800-361-2126
Web-Site:: http://www.bdc.ca/
The BDC offers term loans for the acquisition of fixed assets, the purchase of a business, to finance sales growth. Amortization and other conditions of the loans are highly flexible.
The BDC can provide guarantees to financial institutions for lines of credit that they extend to exporters. This guarantee can cover up to 90 percent of the value of the export receivables that are used as security.
The BDC aims to increase the venture capital available to promising small and medium-sized businesses in Canada. It can purchase shares in your business, or work with private sector financial institutions to obtain the equity financing you need. It especially wants to help companies with high growth potential, but little access to the capital market.
Businesses need more than capital to succeed. Often, sound advice and help with planning can be just as important as financing in getting a venture off to a good start. The BDC offers a comprehensive range of programs to provide women entrepreneurs with practical help in preparing their business plans and finding additional sources of assistance.
The CASE Program offers advice in all areas of business. Successful retired business people provide counseling in all areas of business management, including accounting, marketing, production and personnel. Any type of business with fewer than 75 employees is eligible.
The BDC can offer assistance with both financial and strategic planning. It can help businesses see how they stack up against the competition, and will help them understand and cope with market trends, competition, resource management, production, R&D and administration.
The BDC can analyze proposed ventures and prepare comprehensive statements that can be used in applications to financial institutions. It can structure the financial proposal using a variety of financing vehicles and can also act as an intermediary in presenting the proposal to financial institutions and government agencies.
Successful entrepreneurs are made, not born. It is not enough to have a good business idea and be willing to work hard. The entrepreneur also needs to develop a foundation of the kinds of skills that will allow her to understand and supervise every aspect of her business. Here too, the BDC can help.
These are 30-hour courses which the BDC has designed to improve your management and business skills. These courses use the case study approach and are usually offered in the evening by community colleges (CEGEPs in Quebec). Topics include Bookkeeping, Practical Financial Management, How to Start (or Develop) a Small Business, Effective Communication, People Management, Management by Objectives, Cost Controls for Manufacturers, Marketing, Retailing, and Selling.
It is not unusual for financial institutions to require borrowers to have co-signers or guarantors for small business loans. Some women, however, feel that they are more likely to be asked for a co-signer. There could be valid reasons for this. For instance, many women operate businesses with "soft assets" which do not provide much collateral to protect the interests of the lender. In addition, the pledged collateral for a loan could be jointly owned with another person (or persons).
Women with insufficient personal assets to support a loan may feel that the request for a co-signer is perfectly reasonable. Others may find it unreasonable. It could be a negotiable item, so if you feel strongly about it, begin the negotiation by stating that such a request is unacceptable to you. If granting the loan depends on this requirement, however, you will have to decide whether or not to comply.
Once your request has been approved, ask the lender to put the offer in writing, specifying the terms as well as the obligations of the lender and of the borrower. A written offer ensures that there will be no misunderstanding and establishes the basis for further negotiation.
A good business relationship is based on mutual respect. If you need external financing, seek out a lending institution that respects you and your business ideas, and is aware of the position and potential of women in business. Once you have found such a lender, stay in regular contact and keep your loans officer informed of your progress. Review your credit rating periodically with credit agencies and make sure that your file is accurate. Note both your positive and negative points so that you can discuss them if they are raised by your lender. And make a point of occasionally inviting your creditor to visit your place of business to see how your operations are progressing.
The most important way of building a solid relationship with your creditors, however, is to plan your future financing needs carefully, and to support your plan with a professional proposal that is detailed enough to allow the lender (or investor) to make an objective decision.
Women
get the best results from financial institutions when they adopt a straightforward approach. Based in Quebec, Lynn's business specializes in language training for individual and corporate clients. She started in 1978 with a single school and now operates 22 schools across Quebec, ten of which are franchised. Employing 32 people directly, she has responsibility for 129 overall. Success led Lynn to consider franchising as a means of expanding her operations. She found that successful franchising requires an enormous amount of time. It involves finding suitable franchisees and then providing them with information, administrative support and the training, accounting, scheduling, promotional and advertising services they need.Lynn initially funded her operations by using family assets but franchising demanded substantial additional financing. Because her business was already well established she had little difficulty in developing a firm business relationship with her bank.
The BDC offers term loans for the acquisition of fixed assets, the purchase of a business, or to finance sales growth. Amortization and other conditions of the loans are highly flexible.
The BDC can provide guarantees to financial institutions for lines of credit that they extend to exporters. This guarantee can cover up to 90 percent of the value of the export receivables that are used as security.
The BDC aims to increase the venture capital available to promising small and medium-sized businesses in Canada. It can purchase shares in your business, or work with private sector financial institutions to obtain the equity financing you need. It especially wants to help companies with high growth potential, but little access to the capital market.
Businesses need more than capital to succeed. Often, sound advice and help with planning can be just as important as financing in getting a venture off to a good start. The BDC offers a comprehensive range of programs to provide women entrepreneurs with practical help in preparing their business plans and finding additional sources of assistance.
The CASE Program offers advice in all areas of business. Successful retired business people provide counseling in all areas of business management, including accounting, marketing, production and personnel. Any type of business with fewer than 75 employees is eligible.
The BDC can offer assistance with both financial and strategic planning. It can help businesses see how they stack up against the competition, and will help them understand and cope with market trends, competition, resource management, production, R&D and administration.
The BDC can analyze proposed ventures and prepare comprehensive statements that can be used in applications to financial institutions. It can structure the financial proposal using a variety of financing vehicles and can also act as an intermediary in presenting the proposal to financial institutions and government agencies.
Successful entrepreneurs are made, not born. It is not enough to have a good business idea and be willing to work hard. The entrepreneur also needs to develop a foundation of the kinds of skills that will allow her to understand and supervise every aspect of her business. Here too, the BDC can help.
These are 30-hour courses which the BDC has designed to improve your management and business skills. These courses use the case study approach and are usually offered in the evening by community colleges (CEGEP's in Québec). Topics include Bookkeeping, Communication, People Management, Management by Objectives, Cost Controls for Manufacturers, Marketing, Retailing, and Selling.
The Bank provides business people with training and individualized counseling tailored to their needs. Approximately 30 business people meet monthly for workshops run by experts, on topics chosen by the participants. A project coordinator then visits their firms to discuss practical applications.
The BDC offers half and full-day seminars on more than 20 topics, including Starting a Business, Time Management, How to Prepare a Market Study, Exporting Your Product, How to Understand Financial Statements, How to Prepare and Use Forecasts, Effective Cash Management, How to Arrange Financing, and Motivating Your Personnel.
As part of its business management seminars, the BDC offers a number of training sessions designed to deal with ;the specific concerns of women.
Winning Strategies for Women is a seminar specifically focused on women entrepreneurs and is designed to help them develop effective negotiating skills. Topics of discussion include assertiveness, effective communication, negotiation and dealing with tricky tactics.
The six-hour Women in Management seminar is based on a case study in which problems commonly faced by women entrepreneurs are examined. Topics include management functions, roles and stereotypes, occupational behaviour, power and leadership, practical solutions to common problems.
Finally, the BDC has prepared a wide range of publications including kits, brochures and handbooks, all designed to help you get started in you business.
Minding Your Own Business is a series of pocketbooks that discuss important aspects of running a small business successfully. Assistance to Business in Canada (ABC) Books offer a comprehensive reference to federal, provincial and territorial government assistance programs for small business.
Do-it-Yourself kits prepared by the BDC assist users in understanding basic business principles and putting them to practical use. They include work sheets, planning charts, checklists, and statement forms. Kits are available on Arranging Financing, Forecasting and Cash Flow Budgeting, Analyzing Financial Statements, Evaluating the Purchase of a Small Business, and Credit and Collection Tips.
For further information on BDC services or a list of BDC publications, get in touch with the BDC office nearest you. You can find out where it is by writing to our Montreal headquarters or calling our toll-free line:
Business Development Bank of Canada
800 Victoria Square
Tour de la Place-Victoria
P.O. Box 335
Montreal, Québec
H4Z 1L4
Tel: (514) 283-5904
Toll Free: 1-800-361-2126
New technologies and new forms of business cooperation have created a world of opportunities and women are poised to take advantage of them. Credit or investment can be a key to realizing these opportunities. Appropriate financing can help to expand your operations, improve your efficiency and increase your profitability. It can serve as a powerful tool to help you realize your long-term objectives. Regardless of financing options or tool to help you realize your long-term objectives. Regardless of the ;financing options or sources you choose, the BDC stands ready to help[ with a wide range of information, advice and services to help you satisfy your financial and other business requirements.
Through this publication, the Business Development Bank of Canada extends its best wishes for every success in your business and its financing.