You’ve got big dreams and big plans for your start-up, but now you’re wondering where the ‘big money’ comes from. Not to worry; you have options. In addition to investing your own funds, you can finance your start-up via debt, equity, or some combination of the two. Let’s break it down:

Debt
Whether it comes from family and friends or from a financial institution, a loan (i.e. debt) is one of the main sources of financing for entrepreneurs. In addition to the necessary financing, debt is useful when cash flow comes into your business in peaks and valleys. Because – trust me – these peaks and valleys won’t always align with your company’s expenditures.

A conventional loan for a business is money borrowed from a lender such as a bank, a credit union or a more specialized organization dedicated to entrepreneurship such as the Business Investment Corporation (BIC), the  Business Development Bank of Canada (BDC) or the Community Business Development Corporations (CBDC). In exchange for receiving a loan, your company, as the borrower, will sign a loan agreement that sets out the terms of repayment and the covenants (both positive and negative) that your business will have to abide by while the loan is outstanding.

Not surprisingly, many lenders are hesitant to advance large sums to business start-ups “on their face”.  You can solve this problem through secured lending: using the business’ assets (building, accounts receivable, inventory, intellectual property etc.) as collateral for the loan. Or you can sign a personal guarantee: if you have personal wealth or assets, you may be able to personally guarantee the loan to your business.

There are tradeoffs with debt financing. The borrowing costs of debt can be high, especially for a start-up. In addition to interest, lending agreements typically set out restrictions that the business must abide by, such as regular submission of your business’ financial progress. As well, with security documents and personal guarantees, there is always the risk of assets being seized and sold in the event of non-payment. Prior to signing any lending agreement, have your lawyer review the terms so that you are clear on your obligations as borrower.

Equity
Equity equals ownership. Rather than a creditor, your financier is an investor in your business.  This can range from “love money” to “angel” investors or venture capitalists. Think Dragon’s Den; these are investors who want a share in your business in exchange for their financial commitment. But no need to stress, securing equity financing is typically much less daunting than pitching to ‘The Dragons’.

Equity can simply be financing received from family and friends. It’s often dubbed “love money” because those closest to you invest as a way of showing love and support. This generally provides the least stringent arrangements for you as a business start-up. Your family and friends are more interested in helping you than receiving the highest of returns on their investment.

“Angels” such as those organized by the Newfoundland & Labrador Angel Network offer business start-ups opportunities to connect with affluent members of the province who are looking to invest in local companies. Angel investors offer informal venture capital. This means they generally have no direct operational control in your business but can offer significant oversight. Consider however, that with the typical high risks associated with start-up businesses, angels generally expect a high return on their investment. Venture capital is institutional in nature and generally provides larger sums of money to companies as compared to angel investors. This type of financing is essentially formalized angel investments – venture capitalists play more of a role in dictating the way your business is run.

Finding the Right Mix
Remember that any financing relationship, from loans to “love money”, is a legal relationship. It is important that you have proper documentation and receive good professional advice before signing any contract. But don’t get overwhelmed by all the options. Sit down with your lawyer to determine the right mix of debt and equity for your start-up.

This Cox & Palmer article is intended to provide information of a general nature only and not legal advice. Individuals are advised to obtain legal advice when it comes to their specific circumstances.

Anna Cook, Partner
Cox & Palmer

Anna M. Cook is a partner in the St. John’s office of Cox & Palmer. Anna’s practice encompasses three main areas of law: Corporate & Commercial, Labour & Employment, and Privacy & Access to Information. In addition to her successful practice, Anna is proud to support the entrepreneurial spirit. Through her active involvement with SIFE Memorial and the Newfoundland and Labrador Organization of Women Entrepreneurs (NLOWE) Anna contributes a valuable voice that helps build the leaders of tomorrow.

When I opened my business, Baystar Catering, in June 2012, I thought I knew how to begin, but now I realize that a plan is essential.

I am originally from Newfoundland but lived away for 24 years.  For 17 of those years I made Tokyo, Japan my home.  In the heart of Tokyo my brother, my husband and I owned and operated a restaurant called the Salty Box Grill.  Besides being a successful restaurant, we facilitated catering functions for embassy events and private parties for expats.  I loved living and working in Japan, but as my children got older I thought it very important for them to know Canada, and of course Newfoundland.   So, I returned home with my two boys and have not looked back since.  I took a job at a local golf course as event manager, which I absolutely loved, but I always longed to have my own business. In my spare time I picked up a few private clients and continued to cater and plan their events.  This is what I loved to do.

It took me 10 years to finally bite the bullet.  I put in my notice at that regular paying job. I had a dream and enough passion to pursue something I knew I loved and be my own boss in the process.  I figured, how difficult could it be? Being in the catering business one way or another for 24 years, I had a few contacts already, so all I had to do was register and hand out my business card, right?   Wrong!

I registered my company, Baystar Catering, a division of Bayswater Enterprises Inc., in June. It took me another three months before I received my food license.  I now realize I should have taken those three months to prepare a business plan.  All I was focusing on was the food license and how long it was taking for the inspection. Once I had my licence, I thought everything else would naturally fall into place.  I had a good idea on my menus and the type of service I wanted to provide, but now I realize that was only the tip of the iceberg.

Try and apply for a company credit card as Baystar Catering; my bank knew Millie Foley but who was Baystar Catering?  It took a lot of paper work but I did it.

After the 100^th person asked if I had a website, I knew that had to be next on the list.  I didn’t have a budget for that. I put the word out there and a golf friend of my husband’s came to the rescue.

I have a web site, menus and a credit card, now what?  Who are my clients? Where is my target market? How can I get to them? I thought I knew all of that stuff.  The waters became quickly muddled as my ideas didn’t proceed according to my plan.  I feel I could have prevented most of this stress and worry if I had done my homework first.

Things are starting to come together now.  Baystar has many repeat clients.  We cater to a variety of private functions including breakfast and lunch delivery, dinner parties, cocktail parties, graduations, wedding receptions, gift openings, birthdays and anniversary celebrations.  Incorporating my experience of living in Tokyo, I created one of our specialities, Japanese Dinner Parties.  We even take along several male and female Kimonos to allow guest to take photos in traditional Japanese attire.  Many people can become stressed just thinking about hosting a party.  Baystar Catering’s flexibility, coupled with our international experience makes us an ideal partner.  Nothing is too much work!

Starting your own business is not for everybody, but when things start happening it’s the best feeling in the world.  It takes a lot of hard work and you have to be willing to listen to others who came before you. You have to do those lists and then do more lists.   NLOWE is a great place to start.

I am involved in several programs at NLOWE and because of them I am keeping on track and getting busier every day.

Millie Foley is the owner and operator of Baystar Catering, located in St. John’s.  For more information you can contact Baystar Catering at 709-576-2297 or  709-730-1524 or email Millie at milliefoley@bellaliant.net.  You can also find Millie on Linkedin and Baystar Catering on Facebook or visit their website www.baystarcatering.ca.

Planning is one of the most important aspects of a business. If you are not preparing yourself for what’s ahead, you may find yourself lost at some point, heading down a wrong road, or making poor decisions with little information. Unfortunately, some business owners do not see the benefit in having a business plan, and while some have been lucky enough to get by without one, it is still well worth your time to plan out the future of your business. Don’t fall for excuses like planning is time consuming or planning gets in the way of profit making time. Some of the most important reasons for business planning are:

Setting specific objectives and goals: Planning will keep you on track and provide clarity in times of trouble. Your business plan is a roadmap, a timetable, and a blueprint for your business. It will allow you, as a business owner, to examine where you are and be  confident you are where you should be. Seeking investment, financing: Your business plan is your business resume. If you are looking for financing, you will need to do your homework first. This is where your business plan comes into play. It provides information to potential investors on the business itself, the research you used, and your business goals.

Provides a clear statement of your business mission and vision: This will allow others to know where you want your business to be, and how you’re going to get there.

Allows you to analyze your business as well as the market overall: When making a large investment of time and money on a business, you want to put a lot of effort into researching the actual business and its surroundings. The  business plan will compel you to observe your competition, investigate opportunities, forecast your businesses future as well as the economy, and study your strengths and weaknesses.

Provides a description of your business model: How do you plan to make money? How do you plan to stay profitable?

Deciding to  grow: Whether you are considering renting a space, hiring employees, or purchasing new equipment, your business plan will allow you to look at your finances versus your needs to see if both can be met.

With these reasons in mind, you will build a business plan that is a never-ending document. Your plan is something you never want to complete. It is something you will want to keep open and add to in a year’s time, or change six months down the road. The ongoing process of planning will always keep you on your toes and ensure you are prepared, for you are the future of your business.

For too many, the business plan can be intimidating. It may seem beyond your expertise. However, you can make creating your business plan less scary by focusing on only one section at a time. Once you have finished one section, move onto the next.

One final piece of advice, don’t stress! NLOWE has Business Advisors located all over Newfoundland and Labrador. The advisors can   help you work through your business plan and they will also meet with you to offer one-on-one confidential business counseling,  information on sources of financing, and referrals to other business-related programs and services available.

Planning for Success is an article from the NLOWE’s first annual publication, The NLOWE Advisor.  Visit the www.nlowe.org/thenloweadvisor view The NLOWE Advisor online.

Lindsay Lindahl and Joanne Gillis are Start-up Business Advisors with NLOWE.  You can reach Lindsay at llindahl@nlowe.org and Joanne at jgillis@nlowe.org.

Prepare: properly expectant, organized, or equipped; ready.

I have been working with NLOWE for almost two years now and loving every minute of it. I finished university and worked for some years but honestly, nothing could really prepare me for this position. I have flown in a very small plane (and I am afraid of flying), I have ridden ski-doo over a frozen harbour to do a presentation; I have gotten lost in small towns, and have been stuck in rain and snow storms. But I wouldn’t change anything about it – I get to enjoy travelling to rural Newfoundland and meet new clients with new ideas!

As a Start Up Advisor, I am always thinking of ways to inspire my clients. I think about how business is closely related to your everyday life. In owning a business, you have to learned to budget – in your personal life you also set budgets. In your business you have to work well with others, as a team. In your personal life, your team is your family unit. Most importantly, a lesson I have learned in my own personal life, and now try to encourage others to do in their business is – always be prepared!

With many of my clients just starting their businesses, I can not re-iterate enough the importance of a business plan. A business plan is basically a guide to how you want to run your business; how you can measure your success, and also a framework for daily operations and a go-to when dealing with issues. Beyond the business plan, there are other important ways to ‘always be prepared’ in business.

• Have a back-up plan. Preparation is organizing yourself and your employees to deal with issues that may come up.  An employee, for example may have a family emergency. How will your store front stay open if you have no one to work the shift for you? If you plan ahead and prepare a backup plan, maybe a casual call-in/part time employee to work these shifts, you won’t end up in stuck. Another example, a supplier cannot bring their product to you in time. Be prepared, have a back up plan or back up supplier on your speed dial!
• Be organized. Use labels, have a “place” for important items (making certain you can find important documents when you need them), and use check-lists. Being organized will ensure operations run more efficiently and increase productivity.
• Plan ahead. Create manuals for fire and safety, and policies and procedures. You cannot always be at the business 100% of the time; it is important that your employees are aware of, and understand important policies and procedures, which provide instructions and directions for the day-to-day operations of your business.

The unexpected is the risk we take in business. How we respond to the unforeseen affects how others view us. Being prepared to deal with issues, unexpected or otherwise,  is about meeting the problem head on and figuring out what can go wrong before it actually does go wrong. Not only is this the Girl Guide motto (which I was a part of as a child) but it is a motto to live and do business by.

Live, learn, and always be prepared!

Lindsay Lindahl is NLOWE’s Business Start-up Advisor in the Central Region. You can reach Lindsay at llindahl@nlowe.org.

Preparations for NLOWE’s 16^th annual conference began early in the year. I remember being in St. John’s for one of our staff meetings in January and discussions around conference planning and logistics were well under way: dates, locations, venues, speakers, agenda, sponsors, etc. I know first-hand how efficient, organized, capable and full of energy, all the ladies I work with at NLOWE are and I can picture much of the behind the scenes preparations that took place at head office over the last few months.

All of the detailed planning became evident to me the week before the conference when we all received our finalized agenda which clearly outlined each of our roles and responsibilities throughout the conference. We had concurrent pre-conference and conference sessions and some of our responsibilities included working the registration booth, being responsible for tweets, introducing speakers, working the NLOWE trade show and video booth, or assisting with photography.

Having worked with NLOWE for a little under a year, I was genuinely excited to attend my first annual conference. I had heard rave reviews from both colleagues and past attendees about previous conferences. This year’s conference took place in Gander at the Hotel Gander on April 17 & 18th. I will admit that I had high expectations, because that is the standard I have come to expect from NLOWE. I was not disappointed.

I arrived in Gander with my West Coast colleague Marvella Wells on Wednesday morning. On the drive out we chatted about the upcoming conference – will the conference go well? Will the food be good? Will everyone enjoy the workshop sessions and speakers? – We wanted everyone to walk away with a positive experience. These are the usual things you worry about when you are the organization putting together an event- it’s your organization’s reputation on the line. I am sure Betsy Saunders (Business Growth Advisor) and Lindsay Lindahl (Business Start-up Advisor) for Central were even more anxious because the conference was being held in their region. Betsy and Lindsay were so sweet and left a decorated wine glass filled with little treats in each of the staffs’ hotel rooms. This little gesture of kindness started the conference off on a positive note for me.

After we were all checked into the hotel, we had a quick lunch and short staff meeting to ensure we all knew where we should be and what we should be doing. I loved that all the conference rooms were in close proximity for the event. When you are wearing heels for two days, the less distance you have to walk the better. I imagine Kristy Hoddinott, NLOWE’s Assistant Director must have felt much the same way in those gorgeous, leopard print killer high heel shoes she wore to our opening reception.

The pre-conference started off with two concurrent sessions. One workshop was presented by Alison Stoodley on Social Media Marketing Done Right: Driving Sales Instead of Wasting Time.  The comments were very favorable from workshop attendees, as they always are when Alison delivers a presentation. The second concurrent session was presented by Carolann Pollett entitled Making Trade Shows Work for You. Having been in the room for this session I can say it was informative and well received by those in attendance. I have heard Carolann deliver several presentations and I always learn something new. My mother always told me that if I learned one new thing a day, I would be doing well. She would be proud because I was learning many new things at the conference.

Two more concurrent sessions were delivered that afternoon. Brenda Kelleher-Flight facilitated a session on Networking and Connecting in Business in one salon, and in the other, Deborah Youden, Export Consultant with NLOWE, facilitated an expert panel made up of Nancy Allen (Women’s Business Development Council, Florida), Mary Anderson, (WEConnect Canada, Toronto) Anne Marie White (ACOA) and Carolann Pollett (IBRD) entitled Beyond our Shores: Growth Through Supplier Diversity and Export. The panel for supplier diversity was warm and welcoming and very knowledgeable in their respective fields as was evidenced in the questions being asked and the responses being given. During the introduction of the panel, I enjoyed the story Nancy Allen told of her young son. When he asked what his mom does for her job, he replied, “She works in the company of women.” I love that description and I intend to use it. Thanks for sharing, Nancy.

The official Networking Reception took place from 7-9pm on the 17^th. The room was buzzing and full of energy as all the women connected, asked questions, listened and shared with each other in an effort to learn and grow their businesses. I had wonderful conversations with many of the women business owners and thoroughly enjoyed meeting them. I even found a few that would make great participants in our Business Connections program. Come on, you didn’t think I would write this without a plug for the program that Melissa Wheeler and I facilitate, did you?

One of the conference highlights for me was the launch of our first annual publication, The NLOWE Advisor. Executive Director Paula Sheppard revealed the publication at the networking session and everyone was really excited about it. We are very proud of the publication and we hope you enjoy it. If you’d like to get your own copy, be sure to contact the business advisor in your region.

Day two was just as exciting! Meg Soper, Humour, Motivational and Work Life Balance Speaker, kicked off our conference and delivered a very funny presentation called Wit, Fit and Balance: Strategies for Success that got everyone energized for the day. Her presentation touched on how we deal with everyday stresses in a constantly changing environment, and the importance of humour to keep life’s challenges in perspective. Meg was honest, refreshing and engaging. There were times I laughed so hard, I cried. At one point I wondered if I was under surveillance by Meg. How did she get inside my head? However, as I looked around the room and saw all the other women laughing hysterically, I knew I wasn’t alone in the overwhelming moments of trying to juggle it all and stay sane. A few of my personal favourite takeaways: Bring it on, you need a sense of humour to survive life, ta da!

The morning’s concurrent sessions were delivered by Pauline Pennell, Move Forward Financially, and Gina Pecore, Elevate your Elevator Pitch. Both received positive reviews from those in attendance and provided conference attendees with tangible takeaways that they could take back to their businesses. Between sessions there were networking breaks where people could participate in the video and trade show booths, or if you wanted, you could attend NLOWE’s Annual General Meeting to meet our recently elected Board of Directors.

Our Keynote Luncheon speaker was Patricia Lovett-Reid, Chief Financial Commentator for CTV News Channel. Her talk was entitled, Get Real: Follow your own Authenticity Track. Patricia’s talk was relevant reality for both our personal and professional lives. I particularly enjoyed her commentary on the importance of the five Fs (Family, Friends, Finance, Fitness and Faith). I quote her in saying, “Life is like a movie and you never know how it’s going to end.” I love hearing all our speakers’ personal stories, their experience in business and how they got to where they are today. Two of my personal favourite pieces of advice that Pattie shared with us include: don’t work in roles, work in outcomes, and, always have a plan B.

In the afternoon, there were two additional sessions to choose from: Creative Leadership Solutions to Increase Employee Retention and Engagement for Business leaders by Michelle Ray, Workplace Relationships and Personal Leadership Expert, as well as Customer Service-Making it Work in Person or Virtually by Donna Messer, Networking and Social Media Expert. These sessions were received with very positive feedback. I really wished I could have been everywhere at once and attended all of the sessions simultaneously. Maybe one day we’ll have a speaker on cloning.

The day ended with our final closing session and wrap up where we gave away prizes to conference attendees. Katja Moehl of KM Designs won the grand prize for the day, which included an hour of one-on-one consulting with conference speaker Donna Messer, as well as a spot on Donna’s radio show, “Talk to Donna.” Based on all the feedback and comments, I think it’s safe to say that NLOWE’s 16^th Annual Conference was a huge success – Ta-da!

Lisa Birmingham is a Business Connections Coordinator with NLOWE. You can reach Lisa at lbirmingham@nlowe.org.

During a corporate retreat, a great discussion ensued when the participants identified the value of Getting Present at work. They had just been introduced to the first of my proprietary 7-Step PROCESS and it was obvious that they had much expertise in the area. Interestingly, their understanding of the value of Getting Present came from their lack of experience. Let me explain.

Me to Participant: Pretend I am your supervisor and you come into my office to discuss an issue. How would it feel if I greeted you by name, smiled, and asked how I can help you, at the same time that I close my laptop and turn off my phone?

Participant: I don’t know how it would feel. I’d be passed out with shock and lying on the floor because it has never happened before! But, once I came to, I’d feel like she thought what I had to say was important. I’d feel like she finally listened to me.

It was one of the most impactful exchanges that happened during the course of the workshop. Participants continued to make reference to it throughout the day and I’ve continue to share it because it is more common than we’d like to admit and if we want to create a culture of empowerment in the workplace, we must harness the value of Getting Present.

Do you ever struggle to give your undivided attention to your staff or your clients? When you are working on a project, do you usually feel focused and productive? Have you ever considered the implications of multi-tasking on the quality of your work, your relationships, and your bank account? Imagine what would happen if you harnessed the value of Getting Present.

When you Get Present, you will change your experience at work forever and the positive impact will be felt by all those around you – your coworkers, direct reports, customers and clients. Even your family will notice because you’ll invariably get hooked on the value and start implementing at home, too! What is that worth?

Here are some suggestions to Get Present at work:

Pause. Take time each morning to quietly plan your day. Remember that you are in control as long as you stay focused on the present moment. When you get lost in the worry about the future or regret of the past you cannot access your highest potential.

Prioritize. At the beginning of each day, identify 3 to 5 things that, if completed, would have the greatest impact on the success of the company. Set boundaries and commit the space on your calendar to ensure that these important tasks get done.

Focus. Do one thing at a time. The quality of your work will increase with your concentration. When you are tempted to switch or do more than one thing at a time, remember that your lack of diligence affects your performance and the organization as a whole.

Disconnect. Turn off your technology when working on projects, in meetings, and talking with people. Technology is our biggest distraction but you can control its hold on you. If you expect others to do it, lead by example.

Listen. Your clients, staff, and investors deserve your undivided attention. Your conversations will likely be more direct and satisfying and your relationships will be more respectful and rewarding.

I believe that Getting Present will change your world. It will differentiate you as a person and as an employer. You have an incredible influence over your experience and that of the people around you. Create a work environment that is reflective of your personal and professional values. It’s your time for a fresh start! Step into your power and feel the value of Getting Present.

Yours in possibility,

Lisa

Lisa L. Payne, BBA, MER, CPC is President of Connections for Success Inc. To her corporate clients, she offers executive coaching, motivational addresses, and a new interactive workshop called “Engage and Excite Your Team through Change: 7 Steps to Create a Culture of Empowerment.”  She is also the author of “What If They Knew? Secrets of an Impressive Woman.” http://LisaLPayne.com.

WooHoo – Welcome NLOWE and delegates to Gander and Area!

I can’t believe it is about to happen…NLOWE Conference in Gander! It has been a while in the works but here we are.  The Chamber has been working with and supporting Destination Gander to ensure that the 2013 NLOWE Conference found its way to Gander. It did!

Gander is a community built on flight with an aviation history that predates the Town’s incorporation in 1958. At the time of its inception, Gander’s airfield was the largest in the world and Gander earned the nickname “Cross-Roads of the Word” as its airport became the primary refuelling stop for transatlantic flights after World War II. Gander played host to a who’s who of the day as Frank Sinatra, Elizabeth Taylor, Jackie Onassis, The Beatles, Hugh Hefner, Fidel Castro, Marlene Dietrich, to name a few, all touched down in Gander!

With a population of 11,054 residents and growing, Gander is a thriving municipality that offers all amenities and services of a modern urban setting. The community is now the central service and industrial hub on Newfoundland’s northeast coast. Some 128 surrounding communities, with a combined population of 90,000, rely on the business and services provided in Gander.  In fact, in a recent analysis of urban centres, MoneySense magazine ranked the Town of Gander among one of the top ten places to live in all of Canada.

A number of NLOWE Award recipients hail from Gander and area.  Innovation and entrepreneurship is alive and well throughout the business communities within Gander and the surrounding Kittiwake Coast…from spas to customized frame specialists, to cranberry producers, and everything in between.

In Gander everything is at your fingertips; since all facilities and accommodations are within minutes of each other.  For those who might like to stretch their legs, we have a walking track in the Gander Community Centre; swimming at the Arts and Culture pool; fitness centre, yoga and  Zumba classes.  And of course there is shopping in the Gander Mall, Town Square, and along Roe Avenue where you will even find Walmart!  Feeling a little “pickish”? We have great places to eat… from fabulous home cooked meals, to your favourite take-outs, to fine dining. Whatever your taste, you can find it in Gander.

We also boast some of the finest “must see” attractions. Just to name a few…

• the North Atlantic Aviation Museum which is home to one of the pieces of steel from the World Trade Towers of the tragic 9/11 attack
• the Thomas Howe Demonstration Forest
• artifacts displayed at the Gander International Airport

We hope you enjoy your stay at the conference and invite you to consider Gander and the Kittiwake Coast as either a tourism destination or a centralized location from which to start or grow your business. The Gander and Area Chamber of Commerce will assist you in having a most memorable and enjoyable experience while in its area – as the Chamber is “In Business for Business”!

Hazel Bishop is the President/CEO of the Gander and Area Chamber of Commerce. This is the largest Chamber in NL outside the St. John’s Board of Trade and boasts a membership of 320, owns its building and is home of the Gander Tourist Information Centre and Moor Crafts Gifts.