1 Are you ready to start What

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Are you ready to start? What is an entrepreneur? – "An entrepreneur is a person who assumes the organization, management and risks involved in a business venture. " Qualities that make a successful entrepreneur: – – – Decision Maker Analytical Ability (problem solving skills) Good Interpersonal Skills High Drive (highly motivated) Risk Taker What you need: ü Personal skills ü Business knowledge ü A good idea! ü Start-up money ü Support ü Good personal credit history 2

Lets get down to business First steps to start a business: From a legal stand point § Choose the form of business: – Sole proprietor – Partnership, or – Incorporation § Register your form of business § Get a business licence From a fiscal stand point § Get a business number § Register for GST and PST From an insurance stand point § Buy business insurance – – Liability Disability Key people Business interruption § Prepare to have employees 3

Your proposal § Your proposal will include your business plan as well as additional documentation such as: – Market research – Industry trends – Other information supporting your project’s viability 4

Your business plan What is a business plan: § A business plan can help you detail your goals, and serves as an operational plan for achieving them § Everyone who is going into business and who is operating a business requires a business plan Why a business plan? ü It describes your business ü It conveys your vision to potential investors ü It explains your business goals ü It raises potential problems and ways to solve them ü It states the amount of capital required to finance your venture 5

Your business plan What it should include: 1. 2. 3. 4. 5. 6. 7. An executive summary A description of your company A description of your management team An overview of your marketing plan Human resources plan Financial planning Appendices that boost your credibility 6

Your business plan What it should include: 1. An executive summary § Your industry, products/services, competitive advantages, amount of financing required 2. A description of your company § Legal status, date company founded, mission, objectives and vision 3. A description of your management team § Roles, experience and competence, education 7

Your Business plan 4. Marketing Plan Four sections should be detailed: 1. Your product or services § Why your products/services will sell? 2. Your market potential § Target clients, market size and penetration, demographic factors 3. Overview of your competition § Their strengths and weaknesses 4. Marketing strategy § Overview of your Marketing plan, media chosen, partners, etc. Overview of your Marketing plan ü Is there a proven market for your products or services? ü Who are your competitors? ü What is your client profile? ü What will you offer that is better? ü How will you get them to switch? 8

Your Business plan 5. Human Resource plan – Determine how you will recruit, retain and develop employees: – HR Policy – Subcontracting and outside professionals – Organizational and development plan 6. Financial planning – Forecasts, balance sheet, statement of income, cash flow budget 7. Appendices that boost your Credibility – Brief bios of your management team, market studies, client testimonials, etc. 9

Finding financing What lenders look for: § Proof of experience, skills, determination, and selfconfidence to successfully carry out your project § Your personal credit history – past performance can affect perception about how you will perform in the future § Your business plan must be clear, structured, and short, but it must cover all elements of your business idea 10

Finding financing What lenders look for: § For new and existing companies: – Forecast for next 2 years – A cash flow analysis that describes your forecasts: • Shows the seasonal fluctuations in your business and prescribes the need for capital 11

Financing to get started Finding initial financing: 1. Personal investment money: Cash/collateral on your assets. 2. Gift capital or love money: Money loaned by loved one and that will be repaid later. 3. Investments from others: Money you raise from investors. ü Proof that you have a long-term commitment to your project ü Bankers consider this asset as “patient capital” ü Bankers regard such investment highly ü Proof that your idea is sound but can often diminish the degree of control you have over you own company 12

Financing to get started Finding initial financing: 4. Supplier (A/P) Financing: ü Policy for paying suppliers based on their payment conditions (often 30 or 60 days after delivery). ü Check with each supplier, since many offer discounts for quick payment. 5. Grants, Subsidies and Tax Credits: ü You may have access to grants, subsidies or tax credits to help recover expenses such as salaries or equipment. 13

Financing to get started Type of loans: 1. Personal Loan ü Money loaned to you, not your business ü Loan secured by your personal assets ü Many banks offer this type of loan to start-up businesses or those with few assets (land, building or equipment) 2. Operating Loan - Also called Line of Credit ü Short term, flexible financing that you manage yourself ü Borrowing as much as you need up to a determined amount ü Secured by your inventory and accounts receivable, and your bank can require full repayment at any time 14

Financing to get started Type of loans: 3. Term Loan ü Long-term financing option for fixed assets such as equipment, land or building 4. Working capital Loan ü Long-term financing to cover projects such as Growth, Export, Marketing, e-Business, R&D, etc. ü Help provide you the cash flow to fuel your growth ü Complement your existing line of credit 15

§ Malta Enterprise provides support to interested applicants to understand the objectives of the incentive, explain details relevant to the scheme and address any problems they might encounter when completing their application. § Applicants may contact the Corporation by calling 144 or by email on info@businessfirst. com. mt. 16

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