Getting Business Grants

Are Government Grants A Myth?

2012-02-14T14:40:00.000-03:30

Since starting "The Business Guide To Government Programs", I have received numerous emails and phone calls asking if there are any more government grants for starting or expanding a business. People sometimes state that they have been talking with a government official who told them that there are no government grants anymore. While this isn't surprising to hear it is bothersome because it is simply not true. There are government grants available for starting a business.

I could list several examples here but frankly that is the information we reserve for our website subscribers. I will share one excellent grant program with you however, the Self Employment Benefit program offered by Service Canada. Here is a program that will pay you a grant of approximately $425.00 per week while you are preparing your business plan and or operating your business. The grant is payable for a maximum of 52 weeks, 78 weeks if your are disabled.

With programs such as this available, why then are some government officials advising people that there are no grants anymore? There are primarily three reasons:

1) The Specialist - Having been with the Government of Canada for 14 years, I can tell you that bureaucrats are famous or infamous depending upon your perspective, for lacking knowledge of what goes on outside of their own departments/agencies. Often they are not aware of the programs of another division within their own departments. They are not to blame for this however.

Historically, governments have delivered their programs using the "specialist" model whereby an individual can tell you everything you ever wanted to know about his or her area of expertise but precious little about anything else. There have been attempts at using a generalist service delivery model i.e. government employees who have a working knowledge of many programs but lack expertise in any of them. You've probably heard terms such as "the single window approach" being used to explain this philosophy. Unfortunately this approach has been slow to catch on and the specialist method of program delivery is still prevalent. Consequently a government employee may advise you that there are no grants available simply because they don't know the difference.

2) Terminology - I hate to state the obvious, but government terminology is confusing. Many government programs provide funding that is non - repayable but are not called grants. There is a legal basis for this however it is beyond the scope of this article. They are sometimes called "contribution agreements" or some other similar name but the bottom line is they are "non - repayable." The next time you are talking with a government employee, don't ask if there are any grants, ask if there are any non repayable contributions available. You may get a different answer.

3) Third Party Delivery - Some government departments finance third party sectoral or community based organizations to administer funding on their behalf. For example:
In British Columbia there is a company called Forestry Innovation Investment Limited. They provide funding for applied research, product development and international marketing activities. This is not a government department or agency. This is a company that was incorporated under the Company Act of British Columbia but guess what? The Province of British Columbia, as represented by the Minister of Forests, is the sole shareholder of the company.

There is nothing deceptive here on the part of the government. I'm sure they have their reasons for taking this approach to service delivery. The point is if you ask a government employee if the Ministry of Forests provides funding for product development, you may be told, no and technically that would be correct. Forestry Innovation Investment Limited, which is owned by the Ministry of Forests, does provide funding however and that could be the very funding you need for your venture.

I hope I have helped you realize that your search for government funding involves a lot more than asking a government employee if there are any grants available because depending upon who you talk to and the terminology you use, you may come away misinformed.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net/
Twitter: Follow @SharonYMonahan
Facebook: http://www.facebook.com/BusinessGrant

12 Steps to Starting a Business in Canada - Step 12 - Insurance - Bonus - Marketing Plan

2012-02-13T13:49:00.000-03:30

Step 12: Insuring Your Business

There is a wide variety of insurance products tailored to the needs of small business. These include the standard insurance policies covering fire, theft, and vandalism which can offset a potentially serious loss of buildings, equipment or inventories. It is likely that a lending institution will insist that adequate property insurance be carried as a condition of a loan.

Specialized types of insurance are also available. For example, business liability insurance will help protect business operations against legal action. Certain important assets of the business, such as plate glass or expensive moulds, may be specifically insured against loss or damage. Business interruption insurance guarantees income during downtime. Plans which can guarantee a level of personal income in the event of temporary or permanent disability are widely available.

Life insurance on key individuals in an organization minimizes the impact on the business in the event of death. Insurance coverage is often structured to fund buy-sell agreements among principal shareholders. Proceeds of the insurance policy are used to purchase the deceased person’s shares in the business from his or her estate, eliminating the possibility of those shares passing on to someone unacceptable to the surviving shareholders

Bonus Content - How to Prepare a Marketing Plan

The final result of marketing strategy planning is an action plan for moving your products and/or services to the final consumers. Elements of the marketing plan include the following:

Introduction

Describe the product or service, highlighting unique or innovative features. Identify status of patent, trademark, or other legal protection.

Situation Analysis
This is a comprehensive analysis of the environment in which you propose to do business. Sections include:

I: The Market

Describe the type of consumer you are aiming your product or service at, the total number of these consumers in your market area and the number you expect to become customers. Outline the potential growth in the market for your product or service, and your projected growth in the market share. Market share may be based on total dollar sales or on unit sales.

II: Competitive Environment

Identify and describe your primary and secondary competitors. Primary competitors will sell products or services which may substitute directly for your own. Secondary competitors will market products or services which may displace yours indirectly. For example, Pepsi might include non-carbonated drinks fruit juice, mineral water or milk. Compare your own proposed operation to your competitors’, and describe the relative ease or difficulty in entering the industry.

III: Technological Environment

Describe the role of technology in your business and estimate how quickly it might become obsolete. How will technological advancements in other industries affect your business, and will you be able to adapt to change?

IV: Socio-Political Environment

How responsive will your firm be to emerging trends in legislation and changing consumer attitudes? Describe your plan for maintaining awareness of new laws and regulations which will affect your business.

Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Examine your business and the environment around you carefully. Identify weaknesses in your business plan or operation and threats from the environment, and then document your ability to respond to these. Also identify strengths in your firm and opportunities presented to it, and describe how you might exploit these.

Objectives
Set precise, quantifiable and realistic objectives for your business. Instead of suggesting, for instance, that you will increase market share every year, state an objective. (For example: to capture 5% of the total market by number of units sold in year one, 7% in year two, and 10% in subsequent years.)

Strategy
Take into account the results of the SWOT section, and select a marketing strategy to achieve your objectives. There are many marketing strategies to choose from, such as new market penetration and expanding market share. Ask a regional consultant of ENL for a basic text on marketing to decide which strategy best fits your situation.

Action Plan
The basic four elements of the marketing mix are product, price, place and promotion. An action plan describes how you will manipulate each of these areas in implementing your marketing strategy. It is best to consult a marketing text for more detail on this process. For example, if your strategy includes increasing market penetration, action items may include lowering price and increasing promotion. The action plan should answer this simple question: What will you do tomorrow?

That's it. I hope you enjoyed the series and got some useful information from it.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Steps 10 & 11

2012-02-09T13:45:00.001-03:30

We are near the end now. Here are steps 10 and 11. One more to follow tomorrow (and a bonus). Stay tuned.

Step 10: Registering With Your Municipality

Most businesses must pay business tax to the municipality in which they are located. This tax is in addition to any commercial property taxes. Businesses which operate from rented premises are also liable for business tax. Tax rates vary by location and by type of activity, so it is very important to get the correct information from your municipal assessment office.

To register your business, contact your town or city council. They will first review your proposal to determine whether or not you would be allowed to operate in your proposed location. You then have to go through an application process and receive an occupancy permit.

Every person starting a business, or restarting after a period of inactivity, should advise the assessment office within a week, giving the start-up date and the address of the business. When locating or shutting down a business, inform the assessment office as soon as plans are confirmed.

Step 11: Obtaining Work Injury Insurance

All businesses should have a work injury insurance program which provides benefits to injured workers and protects employers from most law suits by injured workers or their dependents.

Each state/province has their own system. They are usually funded completely by employers. The amount an employer pays varies according to his/her operation; basically, the higher the risk of injury the higher the cost of coverage.

Most companies are obliged by law to register and pay assessments. If you hire one or more workers, whether full time, part time or casual, you must register. There are some exceptions, such as artists, clergy and sport professionals. If you are unsure of the status of your operation call your local authority and they'll let you know if you are required to have coverage.

If you fail to notify the authorities when you start your business you may be liable for assessment and penalty charges and you may be liable for the cost of any injuries suffered by your workers.

Optional coverage is available for owners and partners of non-incorporated businesses. If you would like to know more about optional personal coverage or coverage in general contact your local authority.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Steps 8 & 9 - The Tax Man Cometh

2012-02-08T16:00:00.000-03:30

Step 8: Remitting State / Provincial Sales Tax (if applicable)

In many provinces or states, taxable goods are subject to sales tax. Any person or firm who, in the ordinary course of their business, sells tangible goods to a purchaser for use or provides an eligible service, must register with the Tax Administration Branch of their provincial or state government. This branch provides a sales tax registration number and remittance forms.

Sales tax is remitted regularly with a summary form provided by the provincial government.There are various tax exemptions available for many sectors of the economy. There are also tax exemptions for specific types of goods such as fuels, food and clothing.

Step 9: Federal Taxation Issues (Canada only)

By law, every employer is responsible for deducting, remitting, and reporting employees’ personal income tax with-holdings, unemployment insurance premiums and Canada Pension Plan deductions to Revenue Canada Taxation. This remittance is required by the 15^th day of every month, or twice monthly in the case of large employers where deductions are in excess of $15,000. If you do not remit in time there is a penalty of 10% of the remittance amount. As well, the employer must provide employees with completed T4 forms by February 28^th each year.

Contributions to both the Federal Unemployment Insurance Commission and the Canada Pension Plan are cost shared by the employer and the employee. Currently an employer must provide 1.4 times the amount of the employees’ EI premium and an amount equal to the employee’s Canada Pension Plan premium.

Where a person and her or his spouse own more than 40% of the common shares of an incorporated company, they are not eligible to receive unemployment insurance benefits and thus do not pay premiums. Operators of unincorporated businesses, proprietorships or partnerships, similarly do not pay EI premiums but must pay CPP with their annual personal tax return. On request, District Offices of Revenue Canada Taxation will provide an account number and a package of the necessary forms, instructions and tables for calculating payroll deductions. They can also help answer any specific questions regarding tax deductions or remittances.

Businesses must also collect and remit the Goods and Services Tax, charged on most goods and services in Canada. Businesses are also entitled to reclaim the GST they have paid on eligible business expenses. Revenue Canada Excise, will provide an account number and explain the collection and remittance process, including rate schedules and remittance requirements of various product, service and industry classifications.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Steps 6 & 7 - Patenting and Setting Up a Bookkeeping System

2012-02-07T14:21:00.002-03:30

I'm giving you 2 steps today as they are somewhat shorter than the previous ones but no less important.

Step 6: Patenting Your Invention or Innovation

If your new business is to be based on an invention or innovation, you must consider whether or not to pursue a patent. Patentable subject matter includes products, compositions, apparatuses and processes. The subject matter must be useful, not obvious to someone in the field, and not a collection of other known devices. For a small business, patent fees vary. Before filing a patent , you should make sure you have written records of your research and development. You must also conduct a patent search based on your detailed description of your invention.

A patent provides a degree of protection against unauthorized use of your invention or innovation. Infringements against the patent must be pursued by the patent holder. A registered patent may help in securing financing by providing credibility for the business idea. You may also decide to sell the patent, or license the production to somebody else for royalty payments.
Alternatives to patenting an innovation include obtaining a trademark on the name, or copyrighting the rules or instructions. The continued success of Coca-Cola^TM is based not on patenting the formula, but the exclusive rights to the words Coca Cola and Coke^TM.

Step 7: Setting up your basic bookkeeping system.

Your bookkeeping system is a tool that lets you know how well your business is operating and provides information necessary to prepare financial statements, submit tax returns, apply for bank loans or government assistance, and make sound decisions about every area of the business. Unless there is a way of keeping track of commitments, income and expenses, there is a good chance money will disappear or be wasted on needless penalties or foregone discounts.

If you don’t have the skills available within your organization to set up the books, there are several alternatives. You can contact an accountant or enlist the help of an experienced friend or counselor to get the system started and show you how to maintain it. You can enroll in one of the many available courses in basic bookkeeping and do-it-yourself accounting. You can contract a bookkeeping service to update your records on a regular basis, or you can purchase one of the simplified commercially available bookkeeping systems.

The advice of a professional accountant will be extremely important in matters of taxation, financial planning, joint-venture negotiations, financing, expansion, and major capital asset acquisition. If you plan to incorporate your business, yearly financial statements will need to be audited by an accredited professional accountant.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Step 5 - Types of Business Organization- Financing

2012-02-05T15:00:00.000-03:30

There are several possible forms of business organization or ownership. The most common forms of business are the sole proprietorship, partnership and corporation.

Sole Proprietorship:

This is the simplest way to set up a business. A sole proprietor is fully responsible for all debts and obligations related to their business. A creditor with a claim against a sole proprietor would normally have a right against all of his or her assets, whether business or personal. This is known as unlimited liability.
Income earned by a sole proprietor is treated as personal income and subject to federal and provincial personal income taxes. This type of business comes under provincial jurisdiction.

Partnership:

A partnership is an agreement in which two or more persons combine their resources in a business. In order to establish the terms of the relationship and to protect partners in the event of a disagreement or dissolution of the business, a partnership agreement should be drawn up with the assistance of a lawyer.

Partners share in the profits according to the terms of the agreement.
In a general partnership, two or more owners share the management of business, and each is personally liable for all the debts and liabilities of the business. This means that each partner is responsible and must assume the consequences of the actions of the other partner(s).

A limited partnership may involve limited partners who contribute capital only. Limited partners do not contribute to the management of the business and are personally responsible only for the amount of capital they have contributed. A limited partnership may also involve general partners. They are fully liable for the debts and obligations of the business, but may be entitled to a greater share of the profits. Partnerships also come under provincial jurisdiction.

Corporation:

A corporation is a legal entity separate from its owners, the shareholders of the company. Each shareholder has limited liability, meaning that a creditor with claims against the assets of the company would normally have no rights against its shareholders.

Federal incorporation involves the completion and filing of the Articles of Incorporation, a Notice of Registered Head Office Address and a Notice of Directors. These documents, which are available from a kit from the Corporations Directorate, Industry Canada, must be accompanied by a filing fee. Applicants must also submit a Newly Upgraded Automate Name Search (NUANS) system report. This report, which relates to the name specified in the Articles of Incorporation, must be dated within 90 days of submission, and may be found in the Corporations Directorate kit.

If a company intends to operate solely within a province, it may be preferable (and cheaper) to incorporate provincially. In either case, we recommend that you get the assistance of a lawyer.

Sole Proprietorship

Advantages	Disadvantages
Low start up costsGreatest freedom from regulation Decision making freedom Minimal working capital required Tax advantages to owner All profits to owner	Unlimited liabilityLack of continuity in business Organization in absence of owner Difficulty in raising capital

Partnership

Advantages	Disadvantages
Ease of formationLow start up costs Additional sources of investment Possible tax advantage Limited regulation Broader management base	Unlimited liabilityLack of continuity Divided Authority Difficulty of raising new capital Difficulty of finding partners Possible partner conflict

Corporation

Advantages	Disadvantages
Limited liabilitySpecialized management Ownership is transferable Continuous existence Separate legal entity Possible tax advantage (lower, small-business tax rate) Easier to raise capital	Closely regulatedMost expensive to organize Charter restrictions Extensive record keeping Diluted ownership Double taxation of dividends

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Step 4 - Financing

2012-02-04T13:00:00.000-03:30

Preparing a business plan will identify the amount of start up capital required (for building and/or leasehold improvements, licenses, equipment, legal and incorporation fees, and materials) as well as operating capital required (rent, utilities, wages and salaries, benefits, telephone and transportation).

The type of business financing depends on capital requirements.

Term financing (repayment terms of one to five years) is required to fund the purchase of long-term assets, such as equipment or initial franchise fees.
A long-term mortgage is required for very large expenditures, such as land or facilities.
Working capital is money needed for everyday operations such as rent, utilities, wages and office supplies. Many working capital needs are funded by the cash surplus of a business.

During start up and at times when cash requirements outpace contributions from sales, there may be enough cash on hand to cover the day-to-day operating needs. In this case, businesses may acquire working capital either by borrowing money for a short time at fixed interest rates, or by establishing a line of credit at a bank or other financial institution.

A line or credit is a negative bank balance, with flexible interest rates and repayment schedules. Normally, the amount of credit allowed is predetermined by the bank and the borrower. You will require the services of a bank to provide for checks and deposits and to keep a separate record of your business transactions.

Besides banks and other financial institutions, there are other sources of funding you can access. These include personal equity, family and friends, informal investors, venture capital companies (private firms that invest in high-risk / high-return ventures, usually by acquiring large shares of the business and providing management assistance), supplier credit, equity funding, shareholders, and government departments and agencies.

We can help with information on Canada business grants and loans . You will be able to access information on Canadian grants available from all levels of government.

Step 5 tomorrow.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada - Step 3 - The Business Plan

2012-02-03T12:30:00.000-03:30

The most effective way to organize your thoughts and fully develop your business idea is to prepare a comprehensive business plan. Some liken it to starting a business on paper. The plan will help you to think about all aspects of the business, and may help you to avoid costly oversights. Business plans also provide the basis for evaluating the viability of your proposal. Be thorough, accurate and concise as you work your way through the business plan elements described below. The elements don't have to be completed in order.

Your business plan will contain the following sections:

1. The Opportunity

Start with a brief description of the business. This gives potential investors and others the information to determine the kind of opportunity your business represents. Avoid technical terms and jargon. Highlight the competitive advantages of your business over others in the field. If the plan concerns an existing business (modernization or expansion) give a brief history of successes and failures.

2. The Product or Service

Describe the existing or proposed products or services. Avoid technical terms and highlight the key features that will distinguish the products or services from competitors. Products may be described as a collection of attributes (size, color, shape, materials, etc.) which produce various benefits (slices, dices, chops, etc.). The status of patent, trademark, and other protection should be addressed in this section.

3. The Market

The marketing section of the business plan is one of the most important and challenging sections to prepare. Describe who will buy your product or service and why. Support your claims. Wherever possible, you should verify statements with valid market research results. Include a description of consumer behaviour (who will buy your product, where, when, for what price, what will they use it for, how often will they purchase). Other information necessary in the marketing section includes: location of markets proposed pricing strategy (e.g. skimming vs. mass marketing) competition (direct and indirect)distribution strategy

4. Management

Investors will place a great deal of importance on the proposed management of the business. Describe your own background, as well as that of key employees and managers. Include any special skills that will help make the business a success.

5. Manufacturing or Delivery Process

Describe how you plan to manufacture the product or distribute the service. Describe any special equipment or processes involved. Cover items such as facilities, equipment, labour, materials, sources of supply, materials handling and storage. Highlight critical stages of the production/delivery process.

6. Financial Projections

Financial statements should include a projected balance sheet, income statement and cash flow statement for the first five years, with the first year broken down monthly. Provide a detailed list of assumptions included in the financial projections, as well as a statement of the cost to develop the product or service.

7. Required Investment

Describe the amount of investment required, and the timing of cash requirements. Detail the sources of funding and the purpose. Outline the repayment terms of borrowed funds. Pay particular attention to long-term capital costs versus operating costs (working capital).

Once a business plan is completed, it may be possible to further analyze your proposed operations. Market research should provide you with a range of prices that consumers will accept, as well as a detailed cost to produce the product or service. Fixed costs include any of the costs of doing business that remain the same while levels of production and sales increase. Examples include equipment costs, rent, utilities, advertizing, and salaries as long as the payroll remains constant. Variable costs include those items that can change and include such items as repair costs and the cost of materials. The level of output required to break even can be calculated in a break-even analysis based on the fixed costs and variable costs.

Example:

Assume you own a pencil making machine. Your fixed costs such as salary, utilities, and rent, total $100,000 per year. Variable costs such as materials and machine maintenance total 40 cents per pencil. Each pencil sells for 80 cents. Using the formula:

break-even = total fixed costs

selling price per unit - variable cost per item

= $100,000
$(.80-.40)
= 250,000 pencils per year to break even

Step 4 tomorrow.

Sharon

12 Steps to Starting a Business in Canada - Step 2

2012-02-02T12:00:00.000-03:30

So in the first step you have determined that you have what it takes and are personally suited to be an entrepreneur. Now you need to move on to step 2.

Step 2: Identifying A Business Opportunity

Most successfully businesses start with a good idea. This idea may be your own or may be drawn from any one of a number of available resources, including the following:

Business contacts and acquaintances.
Business magazines and newspapers: these often contain business success stories, how-to information for would-be small business owners, and lists of start-up opportunities.
Special interest publications: sector-related publications keep entrepreneurs informed of developments in their area of interest.
Tade shows.
Radio, Television and the Internet.
Import goods list: Reviewing a list of the goods imported into an area might provide clues on a wide variety of business opportunities in import replacement and supplier development. If products are not manufactured locally, find out why not.
Trend Analysis: Watch for trends in population, consumer or corporate buying behaviour, government legislation, and other trends related to your business sector.
Existing inventions and innovations: Inquire at universities, trade schools and other research centers for opportunities to acquire technologies already developed.
Government departments, agencies and programs: govt. departments and agencies are often committed to increasing the volume of federal government purchasing in their area of operation.
Departments and agencies offer studies and reports on business trends and opportunities. Boards of Trade and Chambers of Commerce also compile a number of business and investment opportunities.

In The World of Government Grants,The Early Bird Does Get The Worm

2012-02-02T11:45:00.001-03:30

No one is thinking about summer right now however the government of Canada just announced its Canada Summer Jobs program and get this, the application deadline is Feb 29, 2012. After that date you will no longer be able to apply.

You might wonder why so early. The answer is simple. It takes quite a bit of time to compile, assess, recommend, approve and contract the proposals and everything has to be ready for post secondary students who usually finish their semesters in April.

So even if you haven't been thinking about summer yet, if you want to hire a student and get a wage subsidy for it, you best get in the proper frame of mind because by the end of this month it will be too late.

See the full announcement at http://news.gc.ca/web/article-eng.do?nid=654409

To stay informed on application deadlines and program announcements, be sure to follow me on Twitter or Facebook.

Sharon Monahan President,
The Business Guide Incorporated
http://www.businessguide.net

12 Steps to Starting a Business in Canada

2012-02-01T13:07:00.001-03:30

Starting a business in Canada can be an intimidating experience. Most people dont know where to begin and therefore they never do. I have reproduced here, the Steps to Starting A Business developed by the government of Nfld and Labrador. I would like to thank them for their permission to share this information with my readers.

The process of starting a business is largely the same for every province with only some minor differences. Pay particular attention to Step 3 - Preparing a Business Plan. This is a key part of starting a business. Downloading my business plan workbook will help in this regard. For the most part you just need to fill in the blanks. You can then use the business plan to apply for a government grant or loan for a small business (or a large one).

For now start your business planning process by reading Step 1 below. Step 2 will follow tomorrow. Enjoy.

Step 1: Do you have what it takes?

So you’re thinking about starting a small business. It could be one of the most important steps you’ll ever make. Before you make the decision to proceed, you may want to consider the pros and cons of launching your own business. This document is designed to help you through the process. Entrepreneurship offers many rewards. It offers the freedom of being your own boss. It offers the personal satisfaction of building a prosperous business. And it offers the chance to earn an income that is limited only by your choices, skill, and your determination. There are, however, many risks.

Many would-be entrepreneurs are not aware of the effort involved in starting a small business. Many new ventures place heavy demands on your time, your family relationships and your finances. As well, an overwhelming majority of small businesses fail within the first three years, and many require several years to return the entrepreneur's original investment. There is also good news. Small business ownership offers you financial and decision-making independence. If your venture succeeds, you gain job security and the opportunity to provide employment to others.

Questions you should ask yourself

Answer the following questions to help you determine your business strengths.

Have you tried owning or operating a small business before? If yes, did it succeed or fail?
If it failed, why? What did you learn from the failure, and why will this venture succeed?
Do you think positively about yourself and your abilities?
Are you ready for long hours of research, planning and hard work?
Do you have the ability to identify and solve problems? Do you see problems as opportunities?
Are you able to set reasonable short and long-term goals and then follow through? Do you regularly set objectives and then evaluate and adjust to meet them?
Can you identify, evaluate and manage financial and other risks involved in operating a business? Can you determine the effect of various risks on your business? Can you distinguish acceptable risk from outright gambling?
Can you accept failure as part of the learning process?
Do you seek out and use feedback? Will you be objective about other people’s ideas and observations concerning your business proposal?
Are you a self-starter? Will you display initiative and accept responsibility for the affairs of your business?
Will you deal effectively with competition? Success will attract competitors to your business. How will you deal with them?
Can you handle uncertainty and a constantly changing business climate?
Are you able to attract the right people to your business? Choosing partners, shareholders and key employees is extremely important.
Does your educational background prepare you for your chosen field of business?
Has your work experience exposed you to the type of business you wish to start or buy? Can you demonstrate this experience to potential backers?
Are you willing to prepare or assist in preparing a business plan which details every aspect of your proposed enterprise?
How effective are your business management skills? Do you have general knowledge of financing, buying customer relations, advertising, banking and loans, selling, pricing, insurance, and employee relations? What other special skills will you need?
Do you understand the various laws and regulations that govern your business? Have you considered permits, licenses, zoning, employee deductions, labour relations, taxes, record keeping, and shareholder agreements? What other legal requirements will you need to meet?

If you've taken the time to answer these questions, you now have a better understanding of your ability to start a successful small business. Step 2 will follow tomorrow.

Why This is a Good Time to Apply for Government Grants or Loans

2012-01-24T14:24:00.000-03:30

Sharon Monahan President, The Business Guide Incorporated http://www.businessguide.net

One question I get asked a lot is whether there is a good time of year to apply for government grants or loans to start (or expand) my business. One might think that it doesn't matter what time you apply however, surprisingly to many, that is not the case.

Based on my 14 years with the government, I believe there are two distinct times of the year that are prime for applying for funding. One is January 1st to March31st. The reason is simple. This is the last quarter of the governments fiscal year and the time when they get anxious about being able to spend all of their budget. This stems from the use it or lose it mentality that is still prevalent in government.

If a department or agency gets a five million dollar budget for a particular program and only spend four million of it by fiscal year end, there is a strong likelihood they will only get four million next year. At least that is the fear. As a result bureaucrats want to make sure they spend all of their money by March 31st. This means they may look more favourably on your proposal than they would have earlier in the year.

So if you are on the fence about applying for funding, now is a good time to get the ball rolling.

When Is the Best Time of Year For Government Grants in Canada

2011-11-18T22:44:00.000-03:30

In Canada, the government fiscal year begins April 1st. This is when all departments and agencies receive their new budgets for the coming year. There is lots of money to be disbursed and while it is not fair to say they will spend like kids in a candy store, bureaucrats will not be too stringent, when assessing your application .

Things tend to slow down as summer holidays approach. In September staff return with renewed vigor and healthy budgets. If your application for funding arrives now, in many instances it may stand a better chance of getting approved than it would at other times of the year. This is an excellent time to apply for a government grant or loan so if you have been putting it off, now is the time to get started.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net/
Twitter: Follow @SharonYMonahan
Facebook: http://www.facebook.com/BusinessGrant

Accessing Government Business Grants in Canada

2011-11-04T15:51:00.000-02:30

Whether you agree or not, Canadian governments, at all levels, are actively involved in the business community. Each year they award hundreds of millions of dollars to small, medium and large enterprises in the hopes of stimulating local economies, fostering economic development and creating employment.
How successful they have been is anyones guess. Governments have rarely conducted a thorough cost-benefit analysis of their labour market interventions. It is reasonably safe to assume however that they have had their share of successes as well as those they would prefer to forget.

Among the private sector there generally seems to be two schools of thought and they are indeed at opposite ends of the spectrum. There are those who take great pride in proclaiming that they have accomplished everything on their own with no help from government. Others are more than willing to use government money repeatedly to finance their ventures. In some circles these individuals are referred to as "grantrepreneurs".

These two groups do not have to be mutually exclusive. One may take great pride in his or her accomplishments and avail of government financing to bring their plans to fruition.
I have spent fourteen years with the federal government, in the realm of economic development. I have developed, assessed and contracted more funding proposals than I sometimes care to remember. As a taxpayer, only you may decide whether you agree with government involvement in private industry. As a businessperson, however, let me tell you that you are missing a tremendous opportunity if you chose not to take advantage of the literally hundreds of millions of dollars made available by governments, to the business community, each year.

I will not be trying to convince you why government should or should not be involved in financing private sector initiatives. Trust me. As long as there are geographic disparities in employment levels,industry downturns and generally high unemployment levels, governments will continue to be involved in economic development.

As a businessperson this can spell tremendous opportunity for you and your business. My blogs will demonstrate how you can make the most of this opportunity. You will discover how you can get the money you need to start that business you have always wanted or to proceed with that planned expansion.
If you have a question on anything contained in one of my blogss,just send me an email at sharon@businessguide.net. I will do what I can to further clarify.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net/
Twitter: Follow @SharonYMonahan
Facebook: http://www.facebook.com/BusinessGrant

The Recession, Recovery and Canadian Government Business Grants

2011-10-28T20:10:00.000-02:30

How does the recession and recovery affect the availability of government grants in Canada? Well oddly enough, it is during tough economic times that the government is more inclined to step up to the plate with grants and other incentives for business to stimulate local economies.

So despite what you may have thought, it is during down times that the government opens the taps. It is their mandate to keep the economy rolling along and one of the best ways is to help business create new jobs through start ups or expansion.

I have no doubt that the coming months will bring big announcements of government financial assistance for business and not just big business either. There will also be money for small and medium size business as well so keep your ear to the ground.

In Canada, the pressure is on to keep the economy rolling along so there will be help for business and industry. That spells opportunity for you. You can count on The Business Guide to keep you up to date.

You should think about subscribing now so we can keep you informed.

Sharon Monahan
President, The Business Guide Incorporated
http://www.businessguide.net/
Twitter: Follow @SharonYMonahan
Facebook: http://www.facebook.com/BusinessGrant