Entrepreneurs – Business Plan Question

[Dave P]

Hey Gang,

I really want to venture out on my own (Corporate Guy last 15 years). I think I have a good business idea. I have done lots of research, and know what I would need to start.

But I can’t seem to get it all down in a Business Plan. Doesn’t come out sounding like my idea.

For anyone who has started their own business, did you go anywhere to help create your business plan? Did you even have one?

I am thinking I will need a startup line of credit or loan, so would like to have a solid business plan for approaching banks/govt/etc.

I have spent lots of time on the BDC website, just looking to hear what others have done.

Thanks for any direction.

Dave

[Trochu]

Why does it matter if it doesn't sound like your idea? Unless you're infringing on someone's patent/copyright, it doesn't matter. The vast majority of businesses out there piggyback on someone else's idea.

[Dean2]

New business with no track record, forget the business plan. Take a line of credit out secured by your home and use your current income in the corporate world to qualify. No mainline bank will lend against forecast income. The interest on the loan is still tax deductible because you borrowed to earn income.

That said, if you cannot clearly articulate your business idea, and cannot build a solid spreadsheet with your sales, expense forecasts and a detailed starting and one year out balance sheet then you may want to think a bunch longer about this idea. Until you can clearly and simply describe your business idea you don't have a clear path forward.

My suggestion after starting/running a bunch of small businesses and having been in Banking for 35 years. If you want to chat, PM me your phone number.

[General Practitioner]

Originally Posted by Dave P

Hey Gang,

I really want to venture out on my own (Corporate Guy last 15 years). I think I have a good business idea. I have done lots of research, and know what I would need to start.

But I can’t seem to get it all down in a Business Plan. Doesn’t come out sounding like my idea.

For anyone who has started their own business, did you go anywhere to help create your business plan? Did you even have one?

I am thinking I will need a startup line of credit or loan, so would like to have a solid business plan for approaching banks/govt/etc.

I have spent lots of time on the BDC website, just looking to hear what others have done.

Thanks for any direction.

Dave

PM sent

[jstubbs]

Originally Posted by Dean2

That said, if you cannot clearly articulate your business idea, and cannot build a solid spreadsheet with your sales, expense forecasts and a detailed starting and one year out balance sheet then you may want to think a bunch longer about this idea. Until you can clearly and simply describe your business idea you don't have a clear path forward.

X2

[TrollGRG]

You can go to most any bank and they will have either hard copy or digital business plans for you. They are not Bank specific so you can use them no matter who you are with.

You can take it one step further and have someone at the bank talk to you about it - they are usually glad to help and at no cost and will guide you through it.

[javlin101]

Doing a business plan is a good start. Shows lenders, funding companies, & clients you are serious about you company and have an actual plan. We used Law Depot and they have a template for just about everything you could ask for in documents. https://www.lawdepot.ca

We started up January 1st 2018, did a Shareholders Agreement, Incorporated, business plan and have been using Sage 50 for the books.

Your business plan is never finished and will grow & change as your business
changes.

The BDC was of no real help and are like banks. Show us history and good balance in you account and maybe they can do something for you.

If your looking for funding you can try FundThrough for covering smaller invoice help

Pivot Financial Inc. has some good financial vehicles for new start up companies. They are expensive but when the banks are not going to help these guys will give you some options.

[wwbirds]

I am often surprised by DiY entrepreneurs who dont involve knowledgeable professionals in planning. Proprietorship, partnership with spouse, corporation?
Lawyer can give you advantages and disadvantages of each and make a suggestion for you particular situation. Do you want limited liability offered by corporate umbrella. Can you use the matrimonial home as collateral without spouse involvement? Does spouse need independant counsel before signing off.
Accountants can explain the dos and donts. give you information on tax requirements, employee payroll, wages vs dividends, costs of UIC and EI etc etc. insurance as well as help draw up the business plan.
If you are about to jump into the deep end spend
$1000 on professionals to ensure there are no surprises later because your friends and AO buddies didnt know about some aspects that you failed to consider.
Many businesses fail due to undercapitalization during the longer than anticipated getting established period after start up. Banks before during or after will be more comfortable seeing that you had professional advice setting up.

[javlin101]

Originally Posted by wwbirds

I am often surprised by DiY entrepreneurs who dont involve knowledgeable professionals in planning. Proprietorship, partnership with spouse, corporation?
Lawyer can give you advantages and disadvantages of each and make a suggestion for you particular situation. Do you want limited liability offered by corporate umbrella. Can you use the matrimonial home as collateral without spouse involvement? Does spouse need independant counsel before signing off.
Accountants can explain the dos and donts. give you information on tax requirements, employee payroll, wages vs dividends, costs of UIC and EI etc etc. insurance as well as help draw up the business plan.
If you are about to jump into the deep end spend
$1000 on professionals to ensure there are no surprises later because your friends and AO buddies didnt know about some aspects that you failed to consider.
Many businesses fail due to undercapitalization during the longer than anticipated getting established period after start up. Banks before during or after will be more comfortable seeing that you had professional advice setting up.

All very true. I will not list how many professional people we talked to from our corporate lawyer, banks, accountants/book keepers to liability Insurance brokers & risk management advisers. We meet and discussed our plan with any professionals that would give us the time of day. We did this for 6 months prior to getting incorporated and start up.

Our Corporate lawyer & Accountant told us after our first year we did pretty good as very few start ups make it thru the first year. My bank account sure did not agree with them but things get better as you go alone if you do it right.

Anywho for the OP's general question Yes Do a Business Plan and talk to as many people you can professional as well as successful Entrepreneurs!

[omega50]

Took a Entrepreneurial Course through Manpower before I opened my first company.
Was held in High River.

Was a good basic roadmap to help me identify what I did not know.

Best part was the networking and meeting other like minded folks

[bschlinker]

A good place to start for some initial information (free) and to point you in the right direction.

https://businesslink.ca

[Bigwoodsman]

It would be worthwhile having a chat with a CPA. Fill him/her in on your plans and do a feasibility study. I’m sure they’ll be able to assist.

BW

[Tippy]

Hi Dave. I don’t know where you are located but check out Community Futures Canada. They have offices throughout Canada and help people complete a business plan as well as offer some basic courses to assist in your path. I believe it’s free but don’t quote me. They also may provide seed money. Community Futures Canada’s link is: https//communityfuturescanada.ca. You should be able to track down the nearest office to your location. It’s worth the time. Good luck.

[Red Bullets]

just my two cents... It would depend if your business is a product or service on how to approach a startup. A marketing plan or a business plan or combination of both plans.

Doing a good in depth market research first helps identify all the factors required to be able write a good business plan that might attract investors or qualify for gov't grants. And a marketing plan helps a person to understand their customer demographics and really have to think through their concept before starting the business. A good marketing plan is part of and supports the business plan too.

And go figure... some entrepreneurs start businesses just with marketing plans and others start businesses just with business plans.

Patents, intellectual property or trademarks can be other aspects of a business start up that need research too.