After some technical difficulties, some of you may not have received the handouts from last night's session.
You should be able to find all the information discussed (including the powerpoint presentation) at http://www.chinookchallenge.com/seminar.php
Please note, these materials will only be available until April 30.
Thursday, February 25, 2010
session 3: financing or funding
When it comes to finance, many entrepreneurs may shy away. The technical aspects of accounting may be beyond your realm of expertise, but all new business owners have to acknowledge and understand the basics for their business to thrive.
The first question Craig posed to the group last night was "how much money do I need?" He cautioned against underestimating this amount and this is a huge planning failure.
When writing your business plan, addressing finances could be incorporated throughout. You may even want to discuss it in the executive summary or offering.
Next we discussed debt versus equity. Debt is money you borrow, equity is your retained earnings.
There are many characteristics to debt: secured/unsecured, short-/long-term, variable/fixed rates, etc.
Craig told the group that when you're trying to get money from a bank, they aren't necessarily looking for someone to pay the money back "right away". Banks are more interested in hearing that you can service the debt and support the payments regularly (that's how banks make their money, and that's what they love to hear).
We talked about different sources of financing. You may have options within your own portfolio like savings, home equity, lines of credit, or friends and family sources ("love money"). Entrepreneurs are encouraged to talk to family and friends about their business idea, it's a great way to practice and source some funds but make sure that you're clear on the expectations of both parties - dot the I's and cross the T's.
Venture capital and angel investors are options as well. Venture capital is typically technology-driven, they look for a quicker return on investment but there are social venture groups out there who look to improve the environment or society. Angels are harder to come by. These are wealthy groups or individuals who can come in and take an active role in the early stages, but be aware Angel investors are rare and there are a lot of scams out there. The best way to meet these people is through networking – join Chambers of Commerce, make contacts, find them face-to-face. These opportunities can fluctuate with industries and markets.
The last two options we reviewed were incubators and government. Incubators aren’t considered financial investment but can result money saved. It’s generally a shared space to help new businesses grow, but after a couple of years you are expected to move on to make room for new enterprise.
Government provides a few options. There are lending services like Community Futures, Business Development Bank of Canada, etc, and there are grants. The lending services are an excellent option if you are not a “desirable” candidate with the banks or have other circumstances. Grants are rare, lengthy and highly competitive, however they can be hugely beneficial. There’s more information available at http://www.cflethbridge.com/faq.php (scroll down partly to “Government Grants”).
Then we were on to Presenting. Another aspect you may shy away. No fear. The key to making a great presentation is knowledge and LOTS of practice.
Craig offered great tips. He said keep it simple, 1-3 (max. 5) points that you want to get across. Go with a standard format – intro, body, and conclusion. Think about it as romancing the listener into your concept. Keep track of transitions, which could be as simple as putting a page-turning break in your notes. Be prepared. Tie everything in together, a common theme. And don’t forget to enjoy the moment – you’re enthusiasm and confidence will shine through.
Craig also noted the energy-time graph where, as the presenter you want to get the energy up as high as you can early in the presentation and try to sustain without losing the interest of the audience.
HOMEWORK: practice the elevator pitch. As hard as it may be, think of how you would talk about your business as though you only had the time you’d spend in an elevator.
At this point, I'm sure most participants have a business idea in mind. I encourage you to start developing your business plan – even if it's as simple as starting a document on your computer or a file on your desk.
MENTORS
All of those who requested mentors please watch for a brief questionnaire. (The deadline has passed to request a mentor).
The first question Craig posed to the group last night was "how much money do I need?" He cautioned against underestimating this amount and this is a huge planning failure.
When writing your business plan, addressing finances could be incorporated throughout. You may even want to discuss it in the executive summary or offering.
Next we discussed debt versus equity. Debt is money you borrow, equity is your retained earnings.
There are many characteristics to debt: secured/unsecured, short-/long-term, variable/fixed rates, etc.
Craig told the group that when you're trying to get money from a bank, they aren't necessarily looking for someone to pay the money back "right away". Banks are more interested in hearing that you can service the debt and support the payments regularly (that's how banks make their money, and that's what they love to hear).
We talked about different sources of financing. You may have options within your own portfolio like savings, home equity, lines of credit, or friends and family sources ("love money"). Entrepreneurs are encouraged to talk to family and friends about their business idea, it's a great way to practice and source some funds but make sure that you're clear on the expectations of both parties - dot the I's and cross the T's.
Venture capital and angel investors are options as well. Venture capital is typically technology-driven, they look for a quicker return on investment but there are social venture groups out there who look to improve the environment or society. Angels are harder to come by. These are wealthy groups or individuals who can come in and take an active role in the early stages, but be aware Angel investors are rare and there are a lot of scams out there. The best way to meet these people is through networking – join Chambers of Commerce, make contacts, find them face-to-face. These opportunities can fluctuate with industries and markets.
The last two options we reviewed were incubators and government. Incubators aren’t considered financial investment but can result money saved. It’s generally a shared space to help new businesses grow, but after a couple of years you are expected to move on to make room for new enterprise.
Government provides a few options. There are lending services like Community Futures, Business Development Bank of Canada, etc, and there are grants. The lending services are an excellent option if you are not a “desirable” candidate with the banks or have other circumstances. Grants are rare, lengthy and highly competitive, however they can be hugely beneficial. There’s more information available at http://www.cflethbridge.com/faq.php (scroll down partly to “Government Grants”).
Then we were on to Presenting. Another aspect you may shy away. No fear. The key to making a great presentation is knowledge and LOTS of practice.
Craig offered great tips. He said keep it simple, 1-3 (max. 5) points that you want to get across. Go with a standard format – intro, body, and conclusion. Think about it as romancing the listener into your concept. Keep track of transitions, which could be as simple as putting a page-turning break in your notes. Be prepared. Tie everything in together, a common theme. And don’t forget to enjoy the moment – you’re enthusiasm and confidence will shine through.
Craig also noted the energy-time graph where, as the presenter you want to get the energy up as high as you can early in the presentation and try to sustain without losing the interest of the audience.
HOMEWORK: practice the elevator pitch. As hard as it may be, think of how you would talk about your business as though you only had the time you’d spend in an elevator.
At this point, I'm sure most participants have a business idea in mind. I encourage you to start developing your business plan – even if it's as simple as starting a document on your computer or a file on your desk.
MENTORS
All of those who requested mentors please watch for a brief questionnaire. (The deadline has passed to request a mentor).
Thursday, February 11, 2010
session 2: ideas to action
Now the fun starts!
After recapping last week's session, Craig took us through some of the first steps to ensure we give lots of thought to the foundation of our business.
First thing to do when developing a business idea is WRITE IT DOWN!
You will likely revisit these thoughts to develop concise strategies to attaining your goal.
Once you've assessed your competitive advantages, take time to do a SWOT analysis. Write a list to see what internal forces you have (STRENGTHS, WEAKNESSES) and external forces (OPPORTUNITIES, THREATS).
If you get stumped, Craig said to think of P.E.S.T: political, economical, social, technological.
We discussed S.M.A.R.T., crisp, clear objectives. He encourages us to use specific words and use focused goals.
Craig gave the group ideas of how to get market research. With technology, it's so simple to get the data firms need to make accurate judgments.
With the right data, calculating revenue (which is different than income, as income is the money left after expenses), market potential and market share becomes about numbers.
This is when we got out the calculators. To see a copy of the exercise and the answer key, visit www.chinookchallenge.com
No session next week
Feb. 24 - session 3: financing vs. funding
Definitely bring your calculator for that!
See you next session!
After recapping last week's session, Craig took us through some of the first steps to ensure we give lots of thought to the foundation of our business.
First thing to do when developing a business idea is WRITE IT DOWN!
You will likely revisit these thoughts to develop concise strategies to attaining your goal.
Once you've assessed your competitive advantages, take time to do a SWOT analysis. Write a list to see what internal forces you have (STRENGTHS, WEAKNESSES) and external forces (OPPORTUNITIES, THREATS).
If you get stumped, Craig said to think of P.E.S.T: political, economical, social, technological.
We discussed S.M.A.R.T., crisp, clear objectives. He encourages us to use specific words and use focused goals.
Craig gave the group ideas of how to get market research. With technology, it's so simple to get the data firms need to make accurate judgments.
With the right data, calculating revenue (which is different than income, as income is the money left after expenses), market potential and market share becomes about numbers.
This is when we got out the calculators. To see a copy of the exercise and the answer key, visit www.chinookchallenge.com
No session next week
Feb. 24 - session 3: financing vs. funding
Definitely bring your calculator for that!
See you next session!
Thursday, February 4, 2010
First session
What a fantastic turn-out to last night's introduction session. The room was literally overflowing in Lethbridge, and we had great attendance in Medicine Hat and Strathmore.
Hopefully for next session, we'll be adding two more locations.
We talked about a few items in the handbook, specifically the program overview, eligibility, evaluation process and some of the rules. The prize is $15,000 for CEC and $20,000 for YTP, plus
Craig, the CEC instructor, discussed who an entrepreneur is, evaluating business opportunity and elements of the business plan (here's a tip: write your executive summary, you'll be able to write your enthusiasm and overall vision right in).
CEC is open to teams and individuals. This is a great time to start thinking about support network. If participants are interested, we can match you with mentors. Let Desiree know by Feb. 24 if you're interested.
Next week's session is 'Ideas to Action'. We'll be discussing spotting opportunities, feasibility analysis, creating a competitive advantage and getting things done - BRING A CALCULATOR!
It's not too late to register and take in some great FREE training!
www.chinookchallenge.com
Got questions? Post them here, you probably aren't the only person wondering what you're wondering.
Hopefully for next session, we'll be adding two more locations.
We talked about a few items in the handbook, specifically the program overview, eligibility, evaluation process and some of the rules. The prize is $15,000 for CEC and $20,000 for YTP, plus
Craig, the CEC instructor, discussed who an entrepreneur is, evaluating business opportunity and elements of the business plan (here's a tip: write your executive summary, you'll be able to write your enthusiasm and overall vision right in).
CEC is open to teams and individuals. This is a great time to start thinking about support network. If participants are interested, we can match you with mentors. Let Desiree know by Feb. 24 if you're interested.
Next week's session is 'Ideas to Action'. We'll be discussing spotting opportunities, feasibility analysis, creating a competitive advantage and getting things done - BRING A CALCULATOR!
It's not too late to register and take in some great FREE training!
www.chinookchallenge.com
Got questions? Post them here, you probably aren't the only person wondering what you're wondering.
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