Financing Your Startup - Startup Canada #StartupChats Highlights
Contextually curated highlights from Startup Candata's #StartupChats about 'Financing Your Startup'.
Image credit: @Startup_Canada
Hey #entrepreneurs! Twenty minutes until today's #StartupChats on 'Financing Your Startup' in partnership with @scotiabank, with host @THINK_Lyndon and our advisors @bissettfinfit @jamesbowen2015 @MrSoubhagya @chasefreo @Can_wcc @needlsJustin @THNQninjas and @henrysooo! pic.twitter.com/sI3MRIYfHd
— Startup Canada (@Startup_Canada) April 15, 2020
Lots of information - not a lot of cash (for startup financing, at least).#truth #Startupchats @can_wcc
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
Agreed. And the money is going to be in short supply for the next few years I think #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
These are the seven main sources of start-up financing:
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
- Personal investment
- Family and friends money
-Venture Capital -for technology-driven businesses
-Angels https://t.co/cosNu020QS
-Incubators
-Government Grants: https://t.co/elP4bVJhDZ
-Bank Loans#startupchats
A1 There are lots of ways to finance a start up, but I'd start with yourself - other sources of funding (eg. friend and family, bank loans, crowd funding) are more likely to follow if they know you are committed. #StartupChats @scotiabank
— helenastle (@helen1astle) April 15, 2020
A1. There has never been a better time to start a business and there are so many great resources available for business owners. @bdc_ca in particular has so many great resources on their website. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
Agreed! If you're starting a business in the United States, look into loans offered by @SBAgov and additional grants that can provide funds for small businesses. #StartupChats
— MyCorporation (@MyCorporation) April 15, 2020
A1) There are lot of resources available. Depending on the geography, the context and associations may vary. There are some global banks who may offer it in every country they operate. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
With the current climate, raising funds in time of Corona from investors can be challenging as they are focused on current investments that may be struggling. Look for VCs that recently raised fresh round of funding as these aren't likely committed yet. #startupchat
— Chase Freo (@ChaseFreo) April 15, 2020
A1 family, friends, personal savings, investors, loans and grants and mostly importantly customer orders. @Startup_Canada #startupchats https://t.co/R1Y2rlAuhC
— James Bowen, PhD, PMP (@jamesBowen2015) April 15, 2020
A1: the first thing is family – friend , 2 thing is partner or investor and 3. Bank @scotiabank #StartupChats https://t.co/9TJJ6n6lRj
— Bill Chuong ( Maple Smart Control) (@sumosumi04) April 15, 2020
A1. As we are located in EU, a lot of companies apply for EU funds in order to boost their digital transformation. EU funds ask for an average of 10-30% financial participation, depending on industry and country #StartupChats
— CTOtech (CaaS) (@CtotechC) April 15, 2020
A1: The Canadian government provides many resources and various funding options for entrepreneurs. Their website is a great place to start. @Startup_Canada #startupchats #startup #entrepreneurlife https://t.co/sVVrWszdT6
— Nancy Priest (@glassoflearning) April 15, 2020
A1: When it comes to financing your business, you can turn your heads to Venture Capitals or Angel Investors. Having a look at your Government grants & subsidies is a great way to get the ball rolling as well :) #startupchats
— ERP Buddies Inc. (@buddies_erp) April 15, 2020
A1) I think initiatives like this is a great resource, working with a mentor, taking part in different organizations and incubator groups. Put yourself out there!!! @scotiabank #StartupChats https://t.co/qSFDHdil0S
— Justin Hartzman (@needlsJustin) April 15, 2020
A1: Right now, capital is a challenge for businesses. Venture capital is hard to obtain, but entrepreneurs have other options such as venture debt, government grants, and BDC low-interest loans if they qualify.#StartupChats https://t.co/o5ptePz5c3
— Venbridge (@venbridge) April 15, 2020
A1 When you're financing your business, you have several options:
— Suzanne Brown/Marketing & Biz Strategist (@OKsuziStrategy) April 15, 2020
*self-funded
*family/friends
*crowdfunded
*customers pre-order
*bank loan
*small business loan (e.g., @sba)
*VC
*angel investor(s)
Right option depends on your biz#startupchats
A1 Hello everyone.
— Barry Y (@yrraByrraB) April 15, 2020
Two free sources of #funding programs:
Try the free #financing database search at: https://t.co/6xbWcc7Bcb @canadabusiness
List of Active Business #Funders in Canada https://t.co/d9ZQqCBIjS@hockeystickco #StartupChats #StartUp
A2. Risk and the impact of their financing choice on the long-term success of their business #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A2. I still own 100% of the equity in my businesses. I could have taken angel money [and could raise VC now I think] but it would have meant compromising and I'd have ended up building a company I have no interest in building #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
If you believe your business will benefit from external funding (debt or equity via angels and VCs) seek it out. Otherwise bootstrap first up until you've stretched your growth that it now requires external funding. #startupchat
— Chase Freo (@ChaseFreo) April 15, 2020
Great point @ChaseFreo! Just be sure to use the full #StartupChats hashtag so you can be included in the discussion
— Startup Canada (@Startup_Canada) April 15, 2020
To approach the right investors there has to be clarity on the target market size, growth, market share, and product market-focus (angel investors or VCs). Ability to service debt (bank loans) #startupchats
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
A completed Business Model Canvas is an excellent tool for this #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A2 Consider an investment from a large, engaged customer. Figure out ways for a customer to pay in advance instead of by invoice (net 90). Shorten the cash cycles. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A good capital structure has a mix of debt and equity financing - so it’s not a choice between the two but a question of the relative mix between the two. Equity financing can be used to raise a significant $$$. Debt costs less to raise. @scotiabank #StartupChats @can_wcc
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A2 Is the source of funding going to work for them? It's a relationship that will last a decent period of time and can be difficult if the goals of the funding provider don't match that of the entrepreneur #StartupChats
— helenastle (@helen1astle) April 15, 2020
A2 Firstly: why do you need funding? Is there a more organic way? too many businesses pursue funding as the end result. Sometimes it's necessary, sometimes it's because they lack creativity. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A2. You should consider your mission, vision & values and what your ultimate goals and financial needs are for the business. Based on the answers to these questions it will drive where you start looking for financing. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A2) The best approach for any start-up, (unless it's in medical research or bio-lab) is to figure out bootstrapping. If, that's out of equation, then understand the vision for the next 6 months and then assess the financial needs. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
A2 My favourite advice is: Be creative on how to figure out if your [investment needing idea] can work for as little as possible and in the shortest amount of time @ericries @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A2 Also if raising equity financing carefully consider how much equity to give up vs financing raised. My advice would be to give away as little as possible at each stage rather than taking on too much capital too early, just take on what you really need. #StartupChats
— helenastle (@helen1astle) April 15, 2020
A2: They should consider the long-term strategy and how much funding they will actually need. Also, whether these funds will be used to get the business up and running, or as an emergency fund, or both. @Startup_Canada #startupchats #startup #entrepreneurlife @scotiabank https://t.co/XVlAOOrKWU
— Nancy Priest (@glassoflearning) April 15, 2020
A.2 : I think it should be consider to get the profit for investor and profit should be better than interest bank or Bond @scotiabank #StartupChats https://t.co/RwEfwM5HVc
— Bill Chuong ( Maple Smart Control) (@sumosumi04) April 15, 2020
A2) 1/2 The financial risk associated with their business. Are your support systems in place? Not just from a financial perspective but also from a mental/emotional and relationship perspective. @Scotiabank #StartupChats https://t.co/PXKjntHpyA
— Justin Hartzman (@needlsJustin) April 15, 2020
A2 First must be more sales, should never lose site of that. From there need to decide between strategic investor or general investor. Pros and cons to both, does your business need capital only or capital plus partnership within our target industry. #startupchats https://t.co/3GqJ1n2l2h
— Mike Senechal (@msenechal) April 15, 2020
A2) 2/2 Having a serious understanding of the market you want to enter and all associated costs and benefits that come with it!!! @scotiabank #StartupChats https://t.co/PXKjntHpyA
— Justin Hartzman (@needlsJustin) April 15, 2020
A2: Understanding the market & its growth is very crucial when deciding your funding approach. For instance, crowdfunding should be the way to go if your product is loved by the customers even before its launch! #startupchats https://t.co/wAP6iEKxEi
— ERP Buddies Inc. (@buddies_erp) April 15, 2020
A2. They must have in mind the long-term strategy of their business and access only as much funding as they need. OF course, we have to factor in the cost of the funding. #StartupChats
— CTOtech (CaaS) (@CtotechC) April 15, 2020
A2 consider risk level of your opportunity. Data helps reduce risk. Reducing risk means different funding sources ie no risk could mean loans, higher risk investors @Startup_Canada #startupchats https://t.co/TQ4piKr2Yg
— James Bowen, PhD, PMP (@jamesBowen2015) April 15, 2020
A2 It all comes down to risk VS. opportunity, where you see your business going, and your own abilities to take it to the next level. Founders could start with a great idea but need a VC to support and help with what the founder doesn't know #StartupChats https://t.co/EOaf73c7hv
— Venbridge (@venbridge) April 15, 2020
A3) Depends on the expenses of the business. If your business requires high capital or R&D expenditures to go to market, bootstrapping is likely not an option. Let's face it, most businesses end up bootstrapping out of necessity, not choice. #startupchats @can_wcc
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A3. Bootstrapping is building a company with nothing but savings & the cash coming in from sales. Entrepreneurs should secure access to credit. At the beg. it may be based on the owners’s credit score but you want to build up a biz credit history asap. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A3 I love the book Profit First by @MikeMichalowicz. He talks about a lot of ways to build lean and carefully. There is nothing more powerful that self-funded growth. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A3: Bootstrapping is when you self-fund your small business. Entrepreneurs may use their own savings, personal credit cards or budget strategically to finance their business as opposed to taking out loans or getting investors involved. #StartupChats
— MyCorporation (@MyCorporation) April 15, 2020
For businesses that don't require a huge investment in upfront CAPEX (capital expenditure for assets) bootstrapping is a great way to test out your idea with a lower level of risk. Bootstrapping is a mindset - what's the minimum spend to prove your idea? #StartupChats
— helenastle (@helen1astle) April 15, 2020
A3) Especially, if the business is aligned with small scale FMCG, #SaaS, Manufacturing etc etc, bootstrapping would be my recommendation. Bootstrapping gives lot of flexibility, no investment pressure! It's one'e own money, time and effort. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
A3 Bootstrapping is the best way. Sometimes you have to scale rapidly but too many jump at this first. There is a lot to be learned through bootstrapping and the lessons learned from leaning out and being creative. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
Check this article on Pros and cons of Bootstrapping your startup: Agree! https://t.co/VW5xI5jlEm #startupchats
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
A3) 1/2 It’s when you start a business with nothing but personal investment or from Family members and friends. Make sure your family and support system are well informed of the risk. @scotiabank #StartupChats https://t.co/TbKl2kcvPJ
— Justin Hartzman (@needlsJustin) April 15, 2020
A3) 2/2 The rationale for bootstrapping is the ability to give up less of your company early on, but on the other hand it may also be the limiting factor in scaling. Better to own a smaller piece of a larger pie. The old adage is so true. @scotiabank #StartupChats https://t.co/TbKl2kcvPJ
— Justin Hartzman (@needlsJustin) April 15, 2020
A3 always find ways to fund without using investor or loan money, best is customer money @Startup_Canada #startupchats https://t.co/soau6I2MeB
— James Bowen, PhD, PMP (@jamesBowen2015) April 15, 2020
A3: Bootstrapping is basically establishing your company with your own savings or even using the money from the early sales towards the business. A perk? if things go south you don't have to worry about any loans, but scaling your business will be a challenge. #startupchats https://t.co/hUkzdwqjNF
— ERP Buddies Inc. (@buddies_erp) April 15, 2020
#StartupChats
— Brazen Jester Studios (@JesterBrazen) April 15, 2020
A3) Its a balancing act between growing organically (keep your pie) vs. big and bold start up (own small piece of a larger pie). Depends on the business. https://t.co/40nz9qiAVv
A4) Not everyone has access to a network of friends and family with the means to invest (or gift/donate). The expectation of a “friends and family round” of funding reveals the privilege in the startup playbook. @scotiabank #StartupChats #can_wcc
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
Absolutely true Nancy, thank you for pointing this out. Can you suggest a work around for those who may not have access to such resources? #StartupChats
— Startup Canada (@Startup_Canada) April 15, 2020
The average 'friends and family round' generates $10 - $150k in startup funding. We need to provide startup funding to all entrepreneurs to level the playing field. The first thing to do is to get rid of the accredited investor regime. My answer requires more characters!!
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
Great point...that “privilege” is revealed at every round of investment...hence why less than 3 percent of female founders receive investment and even less for diverse founders...it’s blatant...hence why a bomb in the “formula” of investment rounds should be disrupted...
— Janice Taylor (@JustBeJanice) April 15, 2020
Great point. There is no question that people give money to people they know. We have a need to create all sorts of networks to create those bonds. And this really speaks to why mentor and sponsors are important for entrepreneurs. #startupchats
— Suzanne Brown/Marketing & Biz Strategist (@OKsuziStrategy) April 15, 2020
A4) Not a big fan of sourcing funds from friends & families. It just helps in short term, over a period of time it may not be beneficial. I'd rather, raise some investment and just share equity with a partner, who is equally excited. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
A4. Full disclosure – I don’t think money and friends/family should mix. Biggest benefit is that there is no real pitch or credit review process to get the money. The risk is that your business fails and you cannot pay back the money on time if at all. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A4 FFF (friends, family, fools) sometimes called Love Money (they love you or your idea, good or bad), is good because it's money in that early stage to figure things out. I still advocate lean execution so you don't waste it. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A4 The negatives: If you lose it, what did the loss cost them? Their life savings, their retirement etc. "there's something funny about money" when it comes to how it affects relationships. You may not find their true colours until you lose their money. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A4 You MUST be prepared that any monies given to you from friends and family will be lost. That should be explicitly noted and agreed upon before taking a dime. #startupChats
— Mike Senechal (@msenechal) April 15, 2020
A4) #StartupChats
— Brazen Jester Studios (@JesterBrazen) April 15, 2020
The risk of loosing it all. Only borrow from friends and family if they can afford to loose it all. https://t.co/h87JBESrkv
A4) Besides the obvious failing, it’s getting the courage to ask for it in the first place. Once you do that, you also have to be prepared to answer the tough questions or deal with unsavoury opinions. It could be a tough pill to swallow!!! @scotiabank #StartupChats https://t.co/vSvfVruRri
— Justin Hartzman (@needlsJustin) April 15, 2020
A4 they might not understand the risk and blame the entrepreneur if the money is returned @Startup_Canada #startupchats https://t.co/SuBu05FJ7N
— James Bowen, PhD, PMP (@jamesBowen2015) April 15, 2020
A4: Benefits:
— Nancy Priest (@glassoflearning) April 15, 2020
- moral support
- financial relief
- people you trust
Risks:
- potential tensions
- the pressure/stress to pay them back
- could damage bonds if business fails@Startup_Canada #startupchats #startup #entrepreneurlife @scotiabank https://t.co/JCjoO83RwP
#startupchats A4) I would also argue that sourcing funds from friends and family create the potential for conflict and disappointment. If things don't work out, the guilt, shame, and financial repercussions extend to a founder’s community at a time when they need them the most.
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
While this round could be easy and relatively fast, going into business with family and friends can be tricky. If they don't understand your business, the risk and reward, and your timeline (and the fact that it will change all the time), you've got a problem #StartupChats https://t.co/oQC5hjjIRa
— Venbridge (@venbridge) April 15, 2020
Your first investment from those who have some residual income to take a risk...also can be known as your “first marriage” that hits the rocks in later stages (around the dreaded 7 year itch) when their investment is diluted or the startup fails...so choose wisely...:)
— Janice Taylor (@JustBeJanice) April 15, 2020
A5. Angel investors are individuals or groups who invest money or equity financing in start-up or early-stage small businesses. You should consider them when you have a proven idea, are trying to scale and do not want to give up too much equity. @scotiabank #startupchats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A5 It is best to reach out to them when you have a solid implementation plan and have really got to know your customers needs. Without product/market fit, you don't really have a business. The Angel will tell you this as well. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
Angel investors are more focused on the teams than VCs. A great way to approach these investors is to ask for feedback for your concept, rather than asking for money right off the bat. Build a relationship first! #startupchats
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
Interesting... I would say the VCs are very focused on the teams - they might want it rebuilt, but the focus is making a strong team, as only a strong team can take a solution to market.
— Colin @ THNQ (@thnqninjas) April 15, 2020
A5 Angels are usually seasoned entrepreneurs who want to help and give back to the next generation of entrepreneurs. They often make great mentors and will give the harsh realities you need. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A5 Angel investors can also bring a wealth of experience and contacts to the table #StartupChats
— helenastle (@helen1astle) April 15, 2020
A5) Angel investor is needed only if you're in few industries. Where the set-up/experimentation cost is very high, where angel investments will be helpful, however for other businesses, you're giving up equity too early. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
Angels are seasoned investors that normaly participates in an equity round when you're on your seed or pre-seed stage. They can be a great resource to open doors for you to new sets of contacts and investors in the future as well. #startupchats
— Chase Freo (@ChaseFreo) April 15, 2020
A6) Risks - High cost of capital, pressure to produce a return of investment, loss of control
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
Advantages - Access to networks, mentorship, significant amounts of investment
My advice: Choose your investors wisely.#startupchats @scotiabank @can_wcc
A6 VC is not good if you don't want to scale and/or not looking to give any of your equity away. They are looking for exits (how and when do they get their money back with a 10x return) and that is often in the form of ownership of the company. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A6 Sourcing VC can be a massive time investment, so be sure that you have the time to dedicate without compromising your core business. I have seen this mistake too many times and sales or progress stalls during the pitch process. #startupchats
— Mike Senechal (@msenechal) April 15, 2020
A6 VC is savvy capital who are looking for the 1:1000 10x+ ROI. Massive generalization but they are looking for the next massive winners. When you are ready, they are great investors to take you stratospheric. Don't bother if you don't want to scale. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A6. Venture Capital are funds offered by a company who invest for different motivations and are looking for return. One risk for female CEOs is that you may be removed from leadership after an org is taken public. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
Advantages of a VC, they add lot of value in what we do. In terms, of network/affiliates/partnerships etc etc. However, I'd argue, it's completely driven by numbers. #StartupChats
— Small Business Success (@Microsmallbusi1) April 15, 2020
A7) Examples: Term loan, line of credit, invoice factoring, even a credit card (technically). A shareholder or investor can provide debt financing or a financial institution can do so.@scotiabank #StartupChats
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A7 Credit cards are the low ones. This is risky if you are not going to be able to pay it back right away. Otherwise, banks (loans, lines of credit) are longer term and have monthly payments + interest. FFF can also be an option here for lower risks. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
- Loans
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
-Installment Purchases
-Revolving Credit
-Trade Credit
-Bonds#startupchats
A7 Trade finance and invoice factoring are ones often missed by entrepreneurs as they can be quite complicated to navigate but once set up, a great, cost effective way to scale #StartupChats
— helenastle (@helen1astle) April 15, 2020
A7. Trade Credit (when you pay your supplier after your receive your good/service), Lines of Credit, credit cards, term loans, leases for equipment or vehicles and mortgages if own land/building. @scotiabank #startupchats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A7. REVENUE. REVENUE. REVENUE.
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
The debt is the "sweat" equity invested to find product/market fit, develop a business model and run the business until you find customer 1, 10, 100... #StartupChats
A8 Talk to your local entrepreneur communities. Each city has accelerators, incubators, support teams that can help you discover the different grants and options available. You still need to have an investable idea. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
Find all the information that you need about business public grants and financing here: https://t.co/vYRJhLWRi4 #startupchats
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
A8. Right now, for startups with payroll there are #CEBA loans. For entrepreneurs in the build phase, there's no real support to help entrepreneurs navigate through #COVID19 #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A8) If you’re in a desirable industry there may be government grants available. The problem with grants is that companies often have to twist existing plans to fit the grant requirements instead of providing funding to support innovative growth strategies in place. #debbiedowner
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A8. Lots of great government financing typically and especially in our current environment. Check out community groups, @bdc_ca , chambers of commerce, @sheeo_world , @WBECanada, government of canada, women's entrepreneurship hub @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A9 The key is build an investable tractionable business. The funding comes easy from there. The core things you need to be investable and tractionable are at https://t.co/e7pMOLRb6w lots of tools and resources there. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
I watched a fascinating session today by Alex Osterwalder [@strategyzer] about his new book - The Invincible Company which looks at the need to exploit a sustainable business model and exploit new ones through innovation using metered-funding to find the winners #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A9. Work with local business centres, incubators, chambers of commerce, a business coach like myself & @bdc_ca has great resources. Speak to your accountant, bookkeeper & any other prof contacts for referrals to bankers so you can build a relationship. @scotiabank #startupchats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A9) Shameless plug - women-identified entrepreneurs, founders, and business owners should join the Canadian Women's Chamber of Commerce (@can_wcc). 3-month memberships are now on sale for $1 to provide support during this challenging time. @startupcanada is fantastic, too!
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A10) Organic growth still requires money - mostly on marketing. Make sure to measure your marketing ROI very carefully. Track customer acquisition costs and try to decrease those costs over time through process efficiencies and testing. @scotiabank #StartupChats @can_wcc
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
If anybody needs help with #marketing metrics I can help #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A10 The challenge is that it can take a little more time. The benefit is you learn a lot more and make mistakes on a smaller scale. If you have a solution customers are excited about, they will sometimes pay in advance or invest for future benefit. @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A10. Retaining control and being able to make short-term sacrifices in the pursuit of a long-term outcome. Also, the ability to make decisions that don't make sense if you're an angel or VC but may make absolute sense to the long-term success of a business #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
Pros of organic growth: Fewer integration challenges and restructuring, obviously more sustainable, and management knows the company inside and out
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
Cons of organic growth: Growth can be significantly slower, a decrease of competitive edge#startupchats
A10. 1/2 It is great to be able to finance a business starting with savings and then cash flow generated by the business. This is not always possible given the way the cash flow cycles vary across businesses. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A10. Cont’d 2/2 As a financial coach I work with biz owners to help them understand the cash flow cycle of the co. & how to plan for it. Money doesn’t always come in when needed so having a safety net to cover these cash flow shortfalls is critical. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A11) Building a business takes time - longer than you may think. Build enough money to pay your bills into your budget and pricing to make it through the hard(er) times. And keep an eye on your personal credit. It will make a difference when you seek a bank loan. #StartupChats
— Nancy Wilson (@ThatNancyWilson) April 15, 2020
A11 If you have lotsa-dollars in customers knocking down your door, you're doing something right. This also means financing is easier. Nothing says success like "I have a 10 massive clients wanting stuff and I can't build it without some money." @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
A11 For starters, figure out how to prove someone wants what you have in the shortest amount of time and for the least amount of money. This will fix a lot of financing issues. Second, talk more to your customers about what they want... @scotiabank #StartupChats
— Colin @ THNQ (@thnqninjas) April 15, 2020
1. Do your research
— Innovators and Entrepreneurs Foundation (@IEF_FIE) April 15, 2020
2. Take care of the legal aspect of every financing option available for you
3. Map your finances
4. Understand the risk
5. Have a coach or mentor!#startupchats
A11.1/2 Preparation is key for biz success. Often entrepreneurs leave the financing piece to the last minute: make it a priority at the outset. Present your business plan & financial results with confidence & be ready to answer any financier questions. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A11. Cont’d 2/2 Be yourself, confident, positive, calm & stay true to your values. Remember there are many ways to secure financing so don’t be discouraged if you get turned down. Find out why it happened, make any adjustments if needed and try again. @scotiabank #StartupChats
— Tracey Bissett (@bissettfinfit) April 15, 2020
A11. Things always take longer and cost more than you plan for so factor this in to your projections. @Startup_Canada @scotiabank #startupchats
— Tracey Bissett (@bissettfinfit) April 15, 2020
1 Validate Your Startup Idea
— Ravi Kikan (@ravikikan) April 15, 2020
2. Build Your POC - MVP
3. Pitch Your POC with Data Findings
4. Choose Strategic Investors (Ideally)
God speed success then #startups
A11: Do it with your own $ if possible. If you’re not financially ready, may be best to delay launching. Or, find a partner that you truly trust to take some of the burden off. And, utilize government resources! @Startup_Canada @scotiabank #startup #startupchats #Entrepreneurship https://t.co/fFkW1ohZhX
— Nancy Priest (@glassoflearning) April 15, 2020
A11: Financing your business is a daunting task. Make sure to look in all directions to find your perfect option & get ready for rejections :) #startupchats https://t.co/zJjFlbhDYg
— ERP Buddies Inc. (@buddies_erp) April 15, 2020
A11
— Barry Y (@yrraByrraB) April 15, 2020
Entrepreneurs come up with ideas for new products all the time. That’s not the same thing as determining whether a market exists. I really like the article below:
What to Do Before Launching a New Product https://t.co/tBHqLSSBbC#StartupChats #StartUp
A11) #StartupChats
— Brazen Jester Studios (@JesterBrazen) April 15, 2020
Create a Business Plan, Get a proof of concept (centralized on revenue existence), then make the decision on the financing path.
Nothing wrong with: Go Big or Go Home, just ask Lowe's or Target. :) https://t.co/XepAAOlOAZ
A11) Don’t be afraid to ask the hard questions, get a second opinion and always try again. Not to sound all after school special but never stop trying!! There is always money to be made and deals to be had. Just don’t lose yourself in the process!! @scotiabank #StartupChats https://t.co/SFuzC67rEN
— Justin Hartzman (@needlsJustin) April 15, 2020
Thank you to everyone for joining today’s #StartupChats on ‘Financing Your Startup’ with @scotiabank!
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
A HUGE thank you to today’s #StartupChats Expert Advisors @bissettfinfit @jamesbowen2015 @MrSoubhagya @chasefreo @Can_wcc @THNQninjas and @henrysooo! #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
As well as @CydneyMar @sumosumi04 @CTOtechC @msenechal @RSMorrison @Venbridge @optinum_ca @StephSharpNeuro @alwayspivoting @jmdennis @divya1n @buddies_erp @ryanoneilknight @helen1astle @Caspiankhw @BizDaley @weheartstartups @Peer_Guidance and @richzhou! #StartupChats
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
Until then, on behalf of the #StartupChats Team, stay safe, physically-distance and please let me know if there is anything I can do to support you personally or professionally.
— LYNDON [THINK DIFFERENTLY] JOHNSON (@THINK_Lyndon) April 15, 2020
My cell is always on at 1 647-773-2677 for voice, SMS or WhatsApp
That was pretty insightful.
— eChai.Network (@eChaiNetwork) April 15, 2020
We've contextually curated the highlights from today's #StartupChats @ https://t.co/3C7vQyk92f@Startup_Canada