sunrise community futures development corp. box 353, 405 coteau ave. weyburn, sk s4h 2k1 phone:...

Do you want t

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boss?

Realize your fu

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Earn a good li

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www.cfps.sk.ca

Beaver River Community FuturesDevelopment Corp.Box 2678, 106 – 1st St. EastMeadow Lake, SK S9X 1Z6Phone: (306) 236-4422www.beaverriver.ca

East Central Development Corp.Box 727, 601 Edmonton St.Broadview, SK S0G 0K0Phone: (306) 696-2443www.eastcentral.sk.ca

Meridian Community FuturesDevelopment Corp.Box 2167, 125 1st Ave. EastKindersley, SK S0L 1S0 Phone: (306) 463-1850Toll Free: 1-888-919-3800www.meridiancfdc.ca

Mid-Sask Community FuturesDevelopment Corp.Box 176410 Saskatchewan Ave. WestOutlook, SK S0L 2N0Phone: (306) 867-9566Toll Free: 1-888-929-9990 www.midsask.ca

Newsask Community FuturesDevelopment Corp.Box 357, 903 – 99th Ave.Tisdale, SK S0E 1T0Phone: (306) 873-4449Toll Free: 1-888-586-9855www.lights.com/newsask/

Northwest Community FuturesDevelopment Corp.#101-1202 101st St.North Battleford, SK S9A 0Z8 Phone: (306) 446-3200Toll Free: 1-877-446-2332www.northwestcf.com

Prince Albert and District CommunityFutures Development Corp.#1-1499 10th Ave. EastPrince Albert, SK S6V 7S6Phone: (306) 763-8125www.sasktelwebsite.net/cfdv

Sagehill Development Corp.Box 10, 515 Mayer St.Bruno, SK S0K 0S0Phone: (306) 369-2610Toll Free: 1-888-732-8999www.sagehill.ca

South Central Community FuturesDevelopment Corp.Box 1087, 229 1st Ave. WestAssiniboia, SK S0H 0B0Phone: (306) 642-5558Toll Free: 1-800-329-1479www.sasktelwebsite.net/sccfd

Southwest Community FuturesDevelopment Corp.Box 10, 885-6th Ave. NESwift Current, SK S9H 3V5Phone: (306) 773-0900www.scfdc.com

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Community Futures Development Corporation Offices

Sunrise Community FuturesDevelopment Corp.Box 353, 405 Coteau Ave.Weyburn, SK S4H 2K1Phone: (306) 842-8803Toll Free: 1-800-699-0533www.sunrisecommunityfutures.com

Ventures Community FuturesDevelopment Corp.Box 1180, Highway 10 EastYorkton, SK S3N 2X3Phone: (306) 782-0255Toll Free: 1-877-782-0255www.venturescfdc.com

Visions North Community FuturesDevelopment Corp.Box 810, 711 LaRonge Ave.LaRonge, SK S0J 1L0Phone: (306) 425-2612Toll Free: 1-877-549-4333www.visionsnorth.com

Community Futures Partners of SaskatchewanBox 1545 Saskatoon, SKPhone: (306) 260-2390www.cfps.sk.cae-mail: [email protected]

South Saskatchewan Independent Living Centre2240 Albert StreetRegina, SaskatchewanS4P 2V2Phone: (306) 757-7452Fax: (306) 757-5892e-mail: [email protected]: www.ssilc.ca

North Saskatchewan Independent Living Centre112 - 514 23rd St. E.Saskatoon, SK S7K 0J8Phone: (306) 665-5508Fax: (306) 244-2453e-mail: [email protected]: www.nsilc.com

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Agencies providing support to Entrepreneurs with Disabilities

3

MEADOW LAKE

LLOYDMINSTER

LA RONGE

PRINCE ALBERT

NORTH BATTLEFORD

KINDERSLEY

SWIFT CURRENT

ASSINIBOIA

OUTLOOK

YORKTON

TISDALE

BRUNO

BROADVIEW

WEYBURN

La Loche

Buffalo Narrows

Pinehouse LakeIle a la Crosse

Beauval

Southend

Stanley MissionSandy Bay

Creighton

Cumberland House

Carrot RiverNipawin

Waskesiu Lake

Candle Lake

Christopher Lake

Arborfield

Hudson BayBeatty

Melfort

Crooked River

Preeceville

Kamsack

MelvilleLipton

Fort Qu'AppelleKatepwa Beach

EdenwoldLumsdenDisley Qu'Appelle

Wolseley

Esterhazy

Moosomin

Kronau

MontmartreWindthorst Kennedy

Wawota

Redvers

Carlyle

Oxbow

Carnduff

Estevan

Stoughton

Radville

Minton

Chamberlain

Regina

Bethune

Moose Jaw

TuxfordChaplin

Parkbeg

AvonleaGravelbourg

Mankota

KyleLeader

Hodgeville

Kerrobert

Turtleford

Big River

Debden

Shellbrook

Leask

Blaine Lake

Glaslyn

Rabbit LakeCochin

MeotaMaidstone

UnityWilkie Radisson Borden

Marsden

Canwood

Vonda

St. Denis

Humboldt

BurrViscount

LaniganWatrous

Nokomis

Imperial Govan

Liberty

Clavet

Aberdeen

Prud'hommeHepburn

Laird

RosthernWakaw

BatocheDuck Lake Birch Hills

Stranraer

Rosetown

DelisleDundurnHarris

Hanley

Conquest

Dinsmore Loreburn

Davidson

Elbow Holdfast

Birsay

Lucky LakeCentral Butte

Eyebrow

Biggar

PerdueSaskatoon

Vanscoy

Eston

AlsaskElrose

Fox Valley

Maple Creek

Ponteix

Eastend

Shaunavon

Climax Val MarieBengough

Lafleche

Coronach

Wilcox

Milestone

Grenfell

Wadena

Wynyard

Foam Lake Canora

Punnichy

Raymore

Southey

Strasbourg

Naicam

KelvingtonLake Lenore

Pierceland

Loon LakeGreen Lake

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1

2

4 5

6

109

87

14

3

1112

13

Beaver River

2 Visions North

3 Lloydminster

4 Northwest

5 Prince Albert

6 Newsask

7 Meridian

8 Midsask

9 Sagehill

10 Ventures

11 Southwest

12 South Central

13 East Central

14 Sunrise

Office Locations

Community Futures Development CorporationOrganizations and Boundaries

Preface

Today, more than ever, people are choosing to own their own business;choosing to make their own path. Today, the face of entrepreneurship is asdiverse as the businesses in our community. Today, the face of business isyou.

This Guide has FIVE PARTS each of which corresponds to the variousstages involved in launching an enterprise or starting a business. STEPS 1 & 2 in the SELF ASSESSMENT GUIDE will help you establishalternative methods of planning your project. It will also help maximize yourentrepreneurial potential while offering assistance in identifying, creatingand even operating a viable, profitable enterprise or help you in choosingyour field of self-employment.

This Guide will help you focus your thoughts and actions and help youunderstand the various aspects of entrepreneurship. You should completethe ENTREPRENEURIAL Potential Assessment Test located at the back ofthe guide. This test is designed to help you evaluate your aptitude forbusiness and is based on a number of characteristics generally observedin entrepreneurs.

As you begin to explore your entrepreneurial potential we encourage you toseek small business specialists who will help you map your journey; helpyou overcome obstacles; and help you to move forward. These individualsare professionals who have, over time, developed extensive networks anda range of business knowledge that will be sure to help you with yourentrepreneurial journey. We’ve provided a handy reference, on the pageopposite, that will help you locate a small business specialist close to you.

N.B. Any reference to gender in this document is to be construed as eitherfemale or male.

4

Table of Contents

Community Futures Offices, Addresses, Locations . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Step 1

Part A - Assessment of Entrepreneurial Potential . . . . . . . . . . . . . . . . . . . . . 10

Part B - Assessment of Business Idea / Project . . . . . . . . . . . . . . . . . . . . . . . . 28

Step 2

How to Start a Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Step 3

My Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Step 4

Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Step 5

Start Your Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Entrepreneurial Potential Assessment Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

5

Account – A statement of businesstransactions that tracks acompany’s assets, liabilities, andnet worth.

Accountant – A professional whomanages and analyzes businessrecords.

Accounts Payable – A companyliability that represents amountsdue for goods or servicespurchased on credit.

Accounts Receivable – Money duein to a business from clients andcustomers; outstanding invoices.

Accrual – A method of accountingthat involves recording revenuesand expenses when they occur,rather than when they are actuallyreceived.

Advertising – Paid promotion of abusiness, usually in the form oftelemarketing, fliers and posters,newspaper, radio, or TV advertise-ments.

Angel – A private investor who oftenhas non-monetary motives forinvesting as well as the usualfinancial ones.

Assets – Tangible or intangibleobjects of value to its owner.

Audit – A formal study of accountsconducted by the CanadaCustoms and Revenue Agency todetermine whether or not thetaxpayer being investigated ispaying appropriate taxes.

Balance – The value, negative orpositive, of an account.

Balance Sheets – Paints a pictureof the business’s financialstrength in terms of assets, liabil-ities, and equity over a set period.

Bankrupt – The condition of abusiness that is unable to pay itsbills. A business declared legallybankrupt may have its propertyconfiscated by the courts anddivided up among its creditors.

Bookkeeping – The procedure ofkeeping accounting records of abusiness’s daily accounts.

Break-Even Point – The point atwhich expenses are equal toincome. Beyond this point acompany realizes a profit.

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Glossary

Broker – An insurance agent whorepresents many different insur-ance companies.

Browser – Software used to “surf”or browse the Internet.

Budget – A statement of expectedincome and expenses over agiven period of time.

Business Opportunity – Legal defin-itions vary; in its simplest terms,a business opportunity is apackaged business investmentthat allows the buyer to begin thebusiness.

Business Plan – A detailed list ofgoals set by the entrepreneur,describing the means and timeframe by which to achieve them.

Capital – Money and assets avail-able for business activities.

Cash Flow – The amount of cashearned by, or available to, abusiness for investment,expenses, or expansion.

Compound Interest – The moneyan investor earns on interest thatwas earned by the investment ina previous period, enabling theinvestment to grow exponentially.

Consumer – A person or businessthat buys goods and services forits own needs, not for resale orfor use in producing goods andservices for resale.

Contract – A legal agreementbetween two or more partiesspecifying each party’s responsi-bilities to meet determinedbusiness obligations.

Corporation – A business structureorganized under state law andgenerally treated as a separatetax entity.

Copyright – An exclusive rightgranted by the federal govern-ment to the processor to publishand sell literary, musical, andother artistic materials. Honoredfor 50 years after the death ofthe author.

Cost – An expense; the amount ofmoney, time, or energy spent onsomething.

Credit – The right side entry in adouble – entry accountingsystem.

Credit Card – An account thatallows carrying a debt indefi-nitely, as long as interest is paidto the account holder.

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Creditor – A person who extendscredit or to whom money isowed.

Customer Service – The mainte-nance and servicing of a productonce it has been sold; the act ofkeeping customers happy andloyal to one’s business.

Database – Information (data),such as customer addresses,stored in a computer.

Debit – The left side entries in adouble – entry accountingsystem.

Debt – Money owed to creditors.

Debt Capital – Funds or assetsacquired by borrowing.

Debt Ratio – the ratio of debts toassets.

Deficit – When expenses aregreater than income: theopposite of surplus.

Demand – The desire for acommodity, together with theability to pay for it; the amountconsumers are ready and able tobuy at all the prices in themarket.

Demographics – Aspects such asthe age sex, income, and house-

hold composition of a particulartarget market.

Depreciation – A loss of value dueto use or age of a company ‘smaterial assets.

Dilution – The reduction of a stock-holder’s percentage of ownershipin an enterprise, usually done byselling more common stock toother parties. Sometimes calledwatering the stock.

Diversification – A method ofdecreasing risk by spreading aninvestor’s money among manydifferent investments.

Electronic Storefront – A websiteset up as a store whereconsumers can see andpurchase merchandise.

E-mail – short for electronic mail ormessages sent between comput-ers using the Internet.

Employee – A person hired by abusiness to work for wages orsalary.

Employment Insurance – A govern-ment administered plan whichcan compensate for loss ofincome due to lack or loss ofwork.

8

Encryption – Code used to scram-ble information sent over theInternet.

Endorsement – Signature on theback of a cheque, rendering itpayable.

Entrepreneur – Derived from theFrench entreprendre, “to under-take”. Someone who is willingand eager to create a newventure in order to present aconcept to the marketplace.

Equity – Total assets minus totalliabilities equals equity or networth.

Expenses – Money spent for goodsor services.

Financial Plan – An estimate of acompany’s future income andexpenses, broken down weekly,monthly, or yearly.

Fiscal Period – An accountingperiod, usually consisting of 12months, and most commonlyused for tax purposes.

Fixed Costs – Business expensesthat must be paid whether or notany sales are being generated;utilities, salaries, advertising,insurance, interest and rent.(USAIIR)

Flame – An angry e-mail sent inresponse to “Spam”, which isunsolicited e-mail hawking aproduct or service.

Gross – Total or entire amountbefore deductions, as opposedto net.

Incentive – Something thatmotivates a person to takeaction; to work or start abusiness, for example.

Income – Money received for goodsor services produced or as areturn on investment.

Income Statement – A formalfinancial document that servesas a summary of income andexpenses and indicates profit orloss during a specified period oftime.

Income Tax – A tax imposed by thegovernment, usually calculatedas a percentage of income.

Infringe – to violate a copyright,trademark, or patent.

Insolvent – the condition of abusiness that is unable to pay itsbills.

9

Interest – Payment for usingsomeone’s money, expressed asa percentage per unit of time.

Inventory – The assets produced bya manufacturing business or theassets bought and sold for profitby a wholesaling or retailingbusiness.

Invoice – A legal, itemized state-ment of goods and services sold(sales invoice) and purchased(purchase invoice).

Keystone – To buy an item whole-sale and sell it for twice thewholesale price; to double one’smoney.

Liability – An obligation to anotherparty.

Lien – An interest of a creditor inany real assets or property assecurity for repayment of credit;a legal claim against property.

Limited Liability Company (LLC) –A hybrid business structure thatcombines tax advantages ofpartnership with liability protec-tion of a corporation.

Line of Credit – Short term financ-ing usually granted by a bank upto a predetermined limit; debtorborrows as needed up to the

limit of credit without need torenegotiate the loan.

Liquidate – The conversion ofassets to cash.

Loan – Money that a lender gives toa person or company for thepurpose of making income.Usually a loan carries a costwhich is expressed as an inter-est rate.

Loss – A financial deficit. The resultof income minus expenses; ifnegative, it is a loss.

Market – A set of consumers. Agroup of people interested inbuying a product or service; anysituation or designated locationwhere trades occur.

Marketing – The activities involvedin finding, accessing, and inform-ing a market of a business inorder to sell a product or service.

Merchandise – A Company’s inven-tory of products.

Minimum Wage - A legally specifiedminimum rate of pay for labour inspecific occupations.

Net – final result; in business, theprofit or loss remaining after allcosts have been subtracted.

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Networking – Interacting with otherpeople and organizations for thepurpose of making contacts anddeveloping business opportuni-ties.

Net Worth – The value of abusiness after all expenses havebeen deducted.

Newsgroup – an on-line discussiongroup focused on a specificsubject.

Niche – A small market segment,often isolated from competitionby degree of specialization orsize.

Operating Costs – Costs created bythe production of businessproducts or services.

Overhead – The fixed costs ofoperating a business. They ofteninclude rent and lease payments.

Partnership – Business associationof two or more people. There aretwo types of partnerships:general and limited.

Patent – Federal government grantto an inventor giving exclusiverights to an invention or processfor 20 years from date of patentapplication filing.

Profit – The financial gain realizedby doing business. The result ofincome minus expenses; ifpositive, it is a profit.

Profit Margin – The sale priceminus the total costs.

Retail – The selling of goods orservices to the end user.

Revenue – Money earned by abusiness from sales of productsor services.

Risk – The chance of loss.

Sole Proprietorship – A businessfirm owned by only one personand operated for his or her profit.

Start-up Capital – Money neededto launch a new venture duringthe pre-start-up and initial periodof operation.

Supply – the amount of a productor service made available bysellers.

Tax – A percentage of a business’sgross profit or of an individual’sincome, taken by the governmentto support public services.

Tax Evasion – Deliberate avoidanceof the obligation to pay taxes;may lead to penalty or even jail.

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Tax-Exempt – The condition of anentity that is allowed to produceincome sheltered from taxation.

Test the Market – To offer aproduct or service to a verylimited, yet representative,segment of consumers in orderto receive customer feedbackand improve the product orservice as necessary, beforeattempting to sell it in a largermarket.

Venture Capitalist – An investorwho provides early financing tonew ventures; often technologybased with an innovative productand the prospect of rapid orprofitable growth.

Workers’ Compensation Insurance– Covers medical and rehabilita-tion costs and lost wages foremployees injured at work;required by law.

Working Capital – The amount offunds available to pay shortterm expenses. Seen as acushion to meet unexpected orout-of-the-ordinary expenses. It isdetermined by subtractingcurrent liabilities from currentassets.

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Entrepreneurship: ALifestyle Choice

Society is currently experiencingmajor changes. New rules aregoverning the labour market every-where in the world. In Canada, thenumber of jobs is decreasing,whereas the number of workers issteadily rising. Today, more than90% of all Canadian businessesare small businesses. They are themain source of job creation andare considered a vital componentof the economy. Individuals just likeyou are also feeling the call; they,like you, want to contribute in theirown way to the economic develop-ment of their community by creat-ing businesses and jobs that are areflection of who they are. Ourindividual values and culture are,and must remain, part of Canada'sfundamental resources.

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Assessment of Entrepreneurial Potential

Step 1Part A

Entrepreneurship: anenriching experience

Millions have done it . . . millionsare dreaming of doing it! Why notbecome your own boss? Individualsare increasingly choosing to go intobusiness, start their own company,work for themselves and createtheir own job as an alternativemeans of taking the future intotheir own hands. Many see beingtheir own boss as an excellentopportunity to challenge them-selves, to fulfil themselves, toempower themselves, to achievecertain social status, to make aname for themselves and to makemoney!

But choosing one of these optionsrequires that you have the makingsof an entrepreneur or of a self-employed worker so that you arenot wasting your efforts. You mustenjoy a kind of lifestyle that is a farcry from the typical 9-to-5, alifestyle that can be exciting butalso quite exhausting!

Boundless enthusiasm and creativ-ity, a realistic, up-to-date businessplan and a good measure of self-confidence are the driving forcesbehind an entrepreneur and self-

employed worker. Decisions thatmay have many repercussions mustoften be made alone and quickly,and certain risks must be takenthough they may lead to insecurityand stress. Entrepreneurs and self-employed workers may work 50,60, even 80 hours a week, and atthe same time keep their eyes andminds open, keep their sense ofhumour and especially their smile,in order to charm clients and keepthem coming back while maintain-ing their personal relationships.

Entrepreneurs and self-employedworkers have much to learn. Theylearn by doing, and they need tolearn to negotiate with experiencedsuppliers, with bargain hunters andother types of demanding clients.They must constantly be working toupdate and broaden their know-ledge: knowledge of themselves;knowledge of the business worldand how it operates; knowledge oftheir sector of economic activityand the various aspects of manage-ment.

In any entrepreneurial adventure, acalm and positive attitude is theorder of the day. Entrepreneurs andself-employed workers face manychallenges. Some of those

14

challenges are out of their controlwhile others are of a more personalnature: pride, naivety, lack of knowl-edge or information, and impulsive-ness can all contribute to failure.

On the other hand, there is nothingbetter than going into business

• to savour the satisfaction ofbeing your own boss, or finallybeing in CONTROL of yourdestiny;

• to give FREE REIGN to andMAXIMIZE your enthusiasm,intelligence, creativity, intuitionand talent;

• to enjoy many freedoms: thefreedom to be and to do, toachieve realistic dreams; to try,even to make mistakes fromwhich so much may be learned.

• to INCREASE YOUR SELF-CONFI-DENCE and self-esteem;

• to ENTERTAIN A PASSION;

• to EXPAND your knowledge dailyand make discoveries along theway;

• to IMPROVE YOUR QUALITY OFLIFE;

• to ENSURE YOUR FUTURE andthat of your family

• to CONTRIBUTE to the greaterwelfare of your clients, yourcommunity, society and theworld.

Entrepreneurship not only makes itpossible for some individuals todiscover who they really are, but italso exposes them to a multitudeof opportunities spawning ideasthat will contribute to our collectivefuture!

But these opportunities dependfirst and foremost on who you are.Entrepreneurship is something thatyou feel in your heart: it is apassion, the thrill of initiating,learning and coming out ahead! Itis certainly an interesting option to explore if this lifestyle appeals to you.

15

Evaluating YourEntrepreneurial Skills

Before going any further, would youlike to know if you’re better suitedas an entrepreneur or as a self-employed worker? To find out,complete the “EntrepreneurialPotential Assessment Test” locatedat the back of this guide. Aftercompleting the Test, take theopportunity to speak about theresults with your small businessspecialist.

A Multitude of Roles

To ensure their success, allbusinesses, big or small, performnumerous tasks. Because oflimited financial and humanresources, it is often the owner ofa small business or a self-employed worker who is in chargeof both managing and carrying outall business activities. At one point,the owner will be acting as thedirector of finance, and later,accountant or bookkeeper. Atanother time, the role will be one ofdirector of sales and marketing andthen, salesperson and buyer. Manydifferent personalities are requiredfor the job!

The Tasks and Activitiesof a Business

An entrepreneur requires numerousskills (alone or in combination withthose of one or more members ofthe team). These skills must bedeveloped and used optimally inorder to ensure the sound manage-ment and success of a business.

The Business Tasks and Activitiesquestionnaire located at the backof this guide will help you evaluateyour skills in managing the tasksand activities involved in running abusiness.

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The Entrepreneur and The Self-EmployedWorker

Self-employment versus Entrepreneurship

In an article published in February1996 in Revue Affaires Plus, MarieQuinty discusses the results of asurvey conducted by the Centred'entrepreneuriat et de PME of theUniversité Laval. The following is afree translation of an excerpt fromher article:

“Survey results reveal that theprofile of a self-employed workerfalls somewhere between that of anentrepreneur and that of thegeneral public. The need forindependence is the predominantcharacteristic of a self-employedworker and is more pronouncedthan for an entrepreneur. Morethan for the average person, butless than for an entrepreneur, aself-employed worker feels the needfor power and accomplishment.

Self-confidence, energy, persever-ance and a high tolerance of stressare typical of a self-employedworker. But action and innovationare not driving forces, whereas an

entrepreneur thrives on them.Similarly, competition does notmotivate a self-employed worker,who has a tendency to avoid itrather than confront it.

A self-employed worker is open tochange and information and hasgood decision-making skills. Butthis lonely soldier is not looking toexpand his/her business networkand circle of friends as the entre-preneur is.

A self-employed worker is also notas quick to act on business oppor-tunities. The difference between anentrepreneur and a worker is thatthe first is ready to sacrifice every-thing for the business, whereas thelatter favours quality of life.”

Do You Have a Head for Business?

Do you want to start a business?Do you want to succeed? First, youmust make sure that owning yourown business is for you. Yoursuccess in business depends a loton your personality, your attitude,your behaviour, your training andexpertise, your preparation, and themeans that you will use to start,

17

direct and manage your business.You increase your chances ofsuccess if you choose a field orsector of activity in which you arecomfortable, and where the marketis not saturated.

Characteristics of Successful Entrepreneurs

Numerous studies on the entrepre-neurial profile carried out in Canadaand the United States show thatsuccessful entrepreneurs sharecertain characteristics to varyingdegrees. The list below identifiesthe main aptitudes, attitudes andbehaviours that make it possiblefor the business dreams of certainpeople to come true.

Successful EntrepreneursDemonstrate:

• a great deal of INDEPENDENCEand SELF-DISCIPLINE;

• a good measure of SELF-CONFIDENCE;

• an above-average aptitude forDECISION MAKING andPROBLEM SOLVING;

• a propensity for RISK TAKING;

• FLEXIBILITY and ORGANIZA-TIONAL SKILLS;

• a great deal of PERSEVERANCE,unflagging TENACITY;

• a great CAPACITY FOR WORKand boundless ENERGY;

• a great deal of SELF-CONTROLand TOLERANCE;

• OPTIMISM and ENTHUSIASM;

• LEADERSHIP skills and aDYNAMIC personality;

• a capacity for COMMUNICATION,PUBLIC RELATIONS and SALES;

• OPEN-MINDEDNESS and FREESPIRITEDNESS.

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Entrepreneurial Knowledge

The same studies also reveal thatsuccessful entrepreneurs aregeneralists. They have a generalidea of everything around them.They have certain knowledge thatthey update continuously, such as:

• knowledge of THEMSELVES;

• knowledge of their SECTOR OFACTIVITY;

• knowledge of their MARKET(target clientele and competi-tion);

• knowledge of COMMONBUSINESS PRACTICES and oftheir entrepreneurial skills;

• knowledge of MANAGEMENTPRACTICES (management withrespect to financial and humanresources, marketing, opera-tions, inventories, etc.);

• GENERAL knowledge (whichmakes a person informed andinteresting).rue.

Inventory and PersonalPlan of ActionMost experts agree that all thesecharacteristics and this knowledgemay increase or be improved in

different ways. For example, entrepre-neurs may call onspecialists (accoun-tants, humanresources consultants,marketing consultants,etc.) for assistance. They may teamup with individuals whose skillscomplement their own, and hireemployees in order to compensatefor their own weaknesses. Theymust, however, be able to discussand evaluate the work of others.

At the back of this guide there is amore detailed description of theentrepreneurial characteristics andknowledge that will help you assessyour situation. Complete the check-list entitled “Inventory and PersonalPlan of Action”.

This checklist will help you realisti-cally evaluate where you stand interms of the characteristics demon-strated by successful entrepre-neurs. It is also intended to assistyou in preparing a personal plan ofaction that you will follow if youdecide to become an entrepreneur.The aim of this plan is to maintainand maximize your strengths, whileminimizing or mitigating your entre-preneurial weaknesses.

19

Reasons for Starting a BusinessIdentify and prioritize your mainreasons for starting a business;begin with the most important (1)and end with the least important(18).

___ I want to be my own boss

___ I want to fulfil myself, tosurpass myself

___ I want to take care of myfuture, to earn a living, tomake money

___ I want to realize a dream

___ I want to be challenged

___ I want to succeed, to win, tobe recognized

___ I need to have responsibilitiesand want to reap the benefitsof the results

___ I need to assert myself, toovercome obstacles

___ I have ambition, I want power

___ I want independence of mind

___ I want to be on top of what I do

___ I want to be personally fulfilled

___ I want to accomplish, to buildsomething lasting

___ I want to be happy by beingunselfish

___ I want to create my own job

___ I have a social mission (creat-ing jobs, providing assistance -making the world a betterplace for...)

___ The business was inherited oris for sale

___ I have no other possibilities ofemployment or promotion,difficult working conditions, aboring job and/or frustrationresulting from working forothers

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Interview with an Experienced Entrepreneuror Self-Employed Worker

We all have a lot to learn and overtime, experience has proven to bethe best teacher. At the back ofthis guide there is an“Entrepreneur/Self-employedWorker Interview Sheet”. Make thetime to meet with an experiencedentrepreneur or self-employedworker, depending on the optionthat appeals to you more. The inter-view will probably take about onehour. The primary purpose of thismeeting is for you to gain a betterunderstanding from this individual’sknowledge and several years ofexperience.

You don’t have to know this person.Why not use this opportunity tocontact someone you admire, whois a role model for you, and get toknow more about someone inter-esting? By being polite, you will findthat it is easy enough to set up ameeting. Many entrepreneurs andself-employed workers like to talkabout their experience and theirinterests! It is up to you to takeadvantage of the situation!

The Consequences of Going Into Business

Positive Consequences orpossible advantages

• Improvement in standard ofliving, possibility of makingmoney

• Ability to overcome difficulties:chance for success, fameand/or an excellent reputation

• Higher-than-average quality of life

• The satisfaction of doing whatyou like, strengthening familyties; possibility of ensuring thefuture of your children and/orensuring them certain earnings

• The pleasure of mixing withbusiness people and other inter-esting individuals; the satisfac-tion of contributing to the greaterwelfare of your community

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• The power to delegate certainresponsibilities and tasks toothers; the pleasure of workingas a team

• Contentment, tolerance, self-actualization and stimulation

• The chance to fulfil yourself, tobe happy, to find balance, totake advantage of your life

• More time and money to takecare of your health and protectyourself

Negative Consequences orPossible Disadvantages

• Financial difficulties and greaterfinancial risk

• Inability to overcome difficulties:risk of failure, risk of getting andkeeping a bad reputation

• Many hours of work; little or novacation, leisure time or fringe benefits

• Difficulties juggling professionallife and personal life; potentialfamily problems

• Loneliness, isolation (often thefeeling of being alone)

• Heavy responsibilities

• Frustration, impatience, low self-esteem, discouragement

• Psychological risks (anxiety,depression, aggression leadingto workaholism, alcohol and drugabuse, burn-out, etc.)

• Health risks (stomach ache,headache, backache, insomnialeading to extreme fatigue, etc.)

Keys of Succeeding inBusiness

Our past collective entrepreneurialexperiences have made it possibleto identify ten key elements thatare likely to facilitate the start-up ofa business, maintain its growth andcontribute to an entrepreneur'ssuccess.

22

The 10 keys to succeeding in business are:

1. Knowledge of Oneself

Entrepreneurs are the foundation ofa business; therefore, they mustknow themselves intimately in orderto better endure the manydemands involved in building abusiness. Their determination tomaximize their strengths andreduce their weaknesses is essential.

2. Entrepreneurial Characteristics

Alone or as a team, entrepreneursmust possess, use and maximizemost of the entrepreneurial charac-teristics listed earlier, and must doso to a degree that is compatiblewith their responsibilities andaccording to the size of theirbusiness.

3. Management Skills

The majority of business bankrupt-cies can be traced back to poormanagement (e.g. poor manage-ment of finances, inventories,production, marketing or humanresources). This is why it is

extremely important for an entre-preneur to acquire managementskills and master them.

4. Expertise and Knowledge ofthe Sector of Activity

Ideally, entrepreneurs should under-take a business venture in a fieldthat fascinates them, with whichthey are already familiar and haveexperience, or at the very least, inwhich they have a great deal ofinterest.

With tenacity and enthusiasm, theymust be constantly broadening theirknowledge and experience in orderto become, and be recognized as,experts: the best, or, at the veryleast, among the best in their field.

5. Knowledge of the Markets

Identifying and knowing the profilesof clients and the competition aswell as trends indicating goodgrowth potential in the sector ofactivity are essential for the effec-tive marketing of products andservices.

23

6. Start-up Capital

Depending on the sector of activityand the size of the business youwant to start, entrepreneurs musthave a certain amount of start-upcapital, even surplus liquidity (afinancial safety net), that will allowthem to deal with unforeseenevents comfortably.

Insufficient equity (personal and/orthird party) and undercapitalizationcan make a business vulnerableand may endanger its survival.

7. Business Plan

An entrepreneur that prepares agood, realistic business plan andcharts their business project indetail increases the success rateand proportionally decreases therisk of failure. This effort forcesentrepreneurs to take stock of theirsituation and anticipate alternativesolutions in the event of problems.As your business changes you mustupdate the plan according to thosecircumstances.

8. Choosing Partners, Associatesand a Mentor

An informed choice when choosing

partners, associates and/ormentors is one of the keys tosucceeding in business.

Partners and employees are chosenon the basis of the needs of thebusiness and the strengths andweaknesses of the entrepreneur;they are not chosen on the basis oflove, friendship or any otheremotion regarding another individ-ual. Informed entrepreneurs alsoseek to surround themselves withgood advisors, including a mentor.

9. Location

Businesses must be located in theright place for them to succeed.Experienced entrepreneurs will tellyou that there are three keys tosuccess: Location, Location,Location. While location alonewon’t ensure success an inappro-priate location can ensure failure.

10. The Right Time to Start the Business

This is another crucial decision: theright business, in the right location,in the right point of the life cycle ofyour product or service, started atthe right time of the year will helpensure your success.

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Food for Thought

The upheaval in the jobmarket has left a bigopening for self-employed workers. Butwatch out! Self-employ-ment is a lifestyle thatdoesn't agree witheveryone.

The 5 conditions for success are: 1

1. Organizational Skills and aGreat Deal of Work

It takes more than enthusiasm andself-confidence to make self-employment a success. Most of all,adaptability and flexibility areneeded. Don’t go into this blindly:know what lies ahead. Are youready to work 60 to 70 hours aweek for a year, for a small salary?

Self-employed workers oftenmismanage their time because theyaren’t organized. Promoting theirservices and products is truly theAchilles’ heel of self-employedworkers. Nine out of ten experienceproblems with sales. Most self-employed workers have previously

been employees. The disadvantageof this experience is that they stillhave employee reflexes. They areused to a hierarchical structurewhere they may be at the bottomrung of the ladder. They find it diffi-cult to see themselves as equalswith their clients.

2. Get the Right Training

What self-employed workers needthe most are concrete, practical,intensive courses, most often inaccounting, bookkeeping, marketstudies and sales. This doesn’tmean that they need to becomeaccountants or marketing experts,but they do need to know thebasics. One thing is certain: simplymastering their area of expertise isnot enough. The most brilliantcomputer specialists or creativegraphic artists will fail if theyneglect the administrative orpromotional aspects of theirbusiness.

3. Find Your Niche

Self-employed workers may carveout a place for themselves inalmost any field. To outsmart thecompetition and not get swallowedup in the clutter of certain sectors,

25

self-employed workers need to findan untapped niche, a different wayof presenting their products andservices. Now more than ever isthe time to use imagination andskills in an original way.

4. Have Enough Insurance

Comprehensive insurance, businessinsurance and disability insuranceare required. Speak to your brokerto make certain that you have all ofthe appropriate insurance policiesin place to protect you, your family,your customer and your business.

5. Get Paid

Unless you are dealing with areputable institution or someonethat you have known for a long time,make sure to check your client'sreputation and credit rating. If youare extending credit make sure thatthe customer signs the invoice andthen make sure you keep allsupporting documents. Another wayof protecting yourself, to a certainextent, is to ask for a deposit atthe beginning of a contract, asecond deposit midway through thecontract with the balance payableat the completion of the contract.

The 7 Habits of HighlyEffective People 2

1. BE PROACTIVE. Decide whatyou want out of life and get it!

2. BEGIN WITH THE END IN MIND.Keep in mind how you wantpeople to remember you at yourfuneral.

3. PUT FIRST THINGS FIRST.Spend your time on what isimportant, even if it is not whatis demanding your immediateattention.

4. THINK WIN-WIN. Be generous.Find solutions that will benefit allparties.

5. SEEK FIRST TO UNDERSTAND,THEN TO BE UNDERSTOOD.Don’t just charge into a conversation. Listen until youhave understood what the other person is saying.

6. SYNERGIZE. Cooperate withothers. Respect their differences.

7. SHARPEN THE SAW.Systematically renew the fourareas of your life: physical,social/emotional, mental andspiritual.

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The Winners 3

In business, as in sports, careerand even in love, only winners areprepared to take the risk of losing.

What makes winners? They nevertake no for an answer. They aretenacious in the face of all obsta-cles. . . . They train their mind toremember happy moments byfocusing on a single goal: victory.

It is more important to see wherewe are going than where we havebeen.

“SURROUND YOURSELF WITHSPECIALISTS, because nobody cando everything, know everything andeven less so, succeed at everything.When entrepreneurs know andaccept this, they increase theirchances for success tenfold.”4

Mental Trio for Success 5

1. A VISION OF THE FUTURE. Aclear vision of the future is neces-sary to keep the dream alive until itis achieved.

2. A WINNING ATTITUDE. Whetheryou win or lose fundamentallydepends on your attitude.

3. PERSONAL DISCIPLINE. There isno shortage of great ideas, butrather people to execute them. Thesame applies to the desire tosucceed. At first, it may seem easyto want to succeed, but whatcounts is your ability to perseverein the face of daily demands. Thisis where self-discipline comes intoplay. Without self-discipline, wecannot broaden our knowledge,make sacrifices, exercise controlover our lives, or get to the tasksthat are less appealing but that arenecessary for success.

Interesting thoughts and advice:

“When we decide to take our livesinto our own hands, our job iseasier if we know ourselves well.

It is also easier to know what wewant and where we want to gowhen we know ourselves well. And

27

this applies to all fields . . .Knowing ourselves, having clear,well-defined, specific goals andobjectives, the determination toforge ahead despite all obstacles,combined with a desire tocontribute to our own development,are critical to making the journeyfrom motivation to self-motivation.” 6

The Key to Success

“A Commitment to Oneself: An Investment with a HighReturn” 7

Everyone wants to go to heaven,but nobody wants to die, so thesong goes. We often want to haveall the advantages of a situationbut none of the disadvantages . . .Being committed means investingyourself, keeping your word andtaking concrete action. We onlystand to gain because all positiveactions tend to produce movementin a positive direction. Commitmentgoes beyond fate: we no longerwait fearfully for our destiny tounfold. We shape it ourselves.

“Go for The Brass Ring

Work is not an end in itself, but ameans to achieving a goal. Decidewhat the goal is as early as possi-ble, and then don't give up untilyou achieve it.

Take One Step at a Time

Don't expect to reach the top in asingle leap: try to improve yourperformance 1% at a time.”8

The Real Tragedy is Not to HaveHave Any Dreams, to Simply LetLife Pass Us By ...

We have to think big, even for thesmall things!

What Are We Waiting For? ...To Be Happy?

Organizational consultants areincreasingly daring to speak wordssuch as happiness, meaning oflife, mental balance.

KAROCHI. This phenomenon is soreal that the Japanese felt the needto create a word to express thebrutal death resulting fromoverwork. Karochi is the secondleading cause of death in Japan. . .

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According to Canadian insurancecompanies, claims for mental andnervous disabilities increased by31% from 1992 to 1994, comparedwith 1.6% for all disability claims.Why this destructive workaholism?To avoid fundamental existentialistquestions, maintains ThierryPauchant and the team that hebrought together to write La quêtedu sens (the search for meaning).

“CURB YOURTRAVELLING!

CONTROL YOURIMPULSIVENESS!

CHANNEL YOURENERGY!” 11

“I DON'T LISTEN TO BAD ADVICE.I use my own judgment to assess asituation. If my instincts tell me notto go down that road, I turnaround.”12

“Generally in life, and specifically inbusiness, we rarely dare to let goof what we know to venture into theunknown. But then HOW DO WEEVOLVE, LEARN TO ACT DIFFER-ENTLY AND LET GO OF OUR OLDWAYS OF SEEING AND DOING

THINGS? We now hear a lot aboutchange, but in fact, very few peopleare changing.”13

“There are those who invest in abusiness in the hopes of obtaininga good return. And then THEREARE THOSE WHO LIVE FOR THEIRBUSINESS INSTEAD OF LIVINGOFF IT.”14

“FIRST WE HAVE TO LOVE! Loveour clients, employees andpartners. We also have to inspirethose we manage. We are living intimes of instant gratification wherethere are easy recipes for every-thing, including management.However, these recipes are nolonger inspiring because we quicklyrealize that there is no soul tothem. Without the notion of love,modern management tools arenothing more than sophisticatedtools to manipulate and take advan-tage of us. We need to spend moretime respecting differences ratherthan trying to standardize; trustingrather than being suspicious; givingto others and making the first stepwithout necessarily expectinganything in return.”15

“Today, business is like a videogame where everything happensvery fast. We have to be able to

29

react quickly, to turn around anddevelop a strategy in the heat ofthe action. WE HAVE TO FOCUS ONACTION RATHER THAN FEELINGGOOD.”16

Peace and quiet are good forcemeteries! WE MUST PRESS ON,DARE, CONQUER.

Manager or Leader ?

“ESSENTIALLY, the manager admin-isters; the leader innovates;

the manager is a copy; the leaderis an original;

the manager accepts the statusquo; the leader challenges it;

the manager focuses on systemsand structures; the leader focuseson people;

the manager exercises control; theleader generates trust;

the manager asks how and when;the leader asks what and why;

good leaders don’t tell their peoplehow to do things, they try toinspire the desire to do things.”

Stop ... or Go On?

You have now reached the end ofStep 1. In the second part of thisSelf Assessment Guide you willlearn where to find business ideasand how to evaluate the potentialof a business idea or project.

But before going any further, youmust make a decision. Will you:

• STOP THE PROCESS NOW asyou have realized the entrepre-neurial way of life is not anappealing prospect for yourfuture?

• INTERRUPT THE PROCESS withthe intention of picking up againsometime in the future or whenconditions are more favourable?or

• CONTINUE WITH THE PROCESS.Consult with your small businessspecialist. Talk to them aboutyour hopes, your dreams, yourdecisions – they’re there tolisten, to counsel, to support.

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Part B

How to Find an Idea

Having the desire and aptitude forentrepreneurship isn't everything;you still need a good idea for abusiness! What idea interests youto the extent that you are willing tomake a total personal commitmentwith respect to time, energy, andmoney? Your commitment must bethe biggest commitment to thebusiness project. If it’s not, yourbusiness might already be introuble.

Where do entrepreneurs get theirideas from? Some small businesspractitioners define the entrepre-neur as a highly creative personwho is constantly coming up withideas for new businesses. While

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Assessment of Business Idea / Project

Step 1

most of those ideas will nevermake it past the thinking stageseveral of them and especiallythose will commercial potential willbe nurtured and analyzed by theentrepreneur until a decision toproceed or not can be made. Someentrepreneurs choose to improveon an existing business idea,commercialize someone else’s ideaor create a new business aroundthe profitable re-combination ofexisting and often very ordinaryelements. Others develop or“invent” completely original ideas,products or technologies. Do youhave an idea you want to pursue?

How do business ideas takeshape? Can the ability to see abusiness opportunity be acquired?Where can you find ideas to pursueand how do you judge the commer-cial value of an idea? How do youdetermine which ideas presentattractive business opportunities?What business idea will suit youbest? Which fits best with yourinterests, past experiences,capabilities, life-style aspirations,financial objectives and marketneeds? This chapter will examinethese themes and will also discussthe need for creativity even after,

and sometimes especially when,your business is in full operation.

The Idea

The idea is an essential element ofthe start-up equation.

Entrepreneurial spirit +

IDEA +

Resources +

= Know-how

Become a SuccessfulEntrepreneur

The search for an idea, if you don’talready have one, can be a bit diffi-cult. In real life this step is rarelyas systematic as small businessliterature would suggest. Theprocesses that lead to the birth ofan idea are complex and often are

32

triggered by your subconscious; oneday “the light comes on”! However,the more deliberate you are in yoursearch for a business opportunity,the more you will see there is anabundance of ideas all around youfrom which to choose. The idea, asudden flash or a confused image,often germinates in our mindwithout our really ever understand-ing how.

Our imaginations contain a bank ofideas; we have accumulated allkinds of information, which oncestimulated, allow many differentconnections to be made and newassociations of ideas to occur. Wecall this intuition, creativity, andinnovative thinking. The capacity forgenerating good business ideascan be the result of curiosity, ofobservation, of a certain open-mindedness, and . . . flair.Entrepreneurs are generally curiousabout their surroundings; theyobserve products and rethink theiruses, they observe people andnote their behaviours and habits.They listen to people and collectmasses of information which theyinterpret and analyze in order todetermine needs or to find a betterway of meeting existing needs.They take the liberty of transferring

information, ideas and concepts,from one field of activity to another,from one place to another – andwhy not?

This developed sense of observa-tion allows them to be more awareof changes in the environment andemerging needs, and to be able toidentify opportunities for busines-ses. So it is true that entrepre-neurs are innovative and creative,and not necessarily born with thisparticular skill or ability. They arethat way because they have learnedhow to observe things around themand make unusual links and origi-nal parallels. Once in business,entrepreneurs are even more awareof new ideas; opportunities thatthey might not have otherwiserecognized.

Business Opportunities

There are different types of entre-preneurs. Most entrepreneurs donot invent the product or servicearound which they build theirbusiness nor do they build theirbusinesses around “breakthroughtechnologies”. They are more in thecategory of “innovators”. Mostoften, they develop a concept,improve an existing product, adapt

33

a device, identify a trend, and try tobe different, to stand out. Contraryto the inventor, who often stopswith the invention and goes on tothe next one, entrepreneurs investin the commercialization of theirideas and achieve a lot of satisfac-tion from doing this.

Entrepreneurs act on their ideasand dreams; their creativity resultsin concrete activities and achieve-ments. Their observations comefrom real life experience, and theirideas are aimed at satisfying clearlyidentified needs or problems.

Entrepreneurs spend a lot of timelooking for good business opportu-nities, opportunities with strongpotential for growth and profitability.But where do you find them? Itseems that most good ideas arefound close by, within arm’s reachof the entrepreneurs who pursuethem. In many cases you just haveto know how to look, know how tolisten, listen to yourself . . . andthen seize the opportunity.

Seeing a Need

A good place to start looking forbusiness ideas is by listening tothe people around you, especially

to your customers. Analyze evenyour own needs. Learn how to lookat things around you and you willsee unsatisfied needs, productsand services that could berethought or reworked andimproved, others that could bebetter adapted. Some of the bestbusiness opportunities got theirstart because an entrepreneur metan unsatisfied need or solved aproblem.

Transpositions

A concept exploited in one field canalso be applied in another. Atechnology or device might betransferred into another sphere ofactivity. An existing process mightbe suitable to other applications. Alittle imagination, some adaptation,and a business idea germinates.

Even travel to another city orcountry can be a starting point fora new business. What is doneelsewhere can be introduced here,whether it is a new product or a

34

new type of business service or ameans to simplify a complex way ofdoing things. The least developedcountries might supply as muchinspiration as the industrializedcountries. (A natural food storedecided to offer its customersfresh roasted coffee, so it importedthe process and the apparatus).

Listening to Yourself

The best source of inspiration andcreativity is yourself. Stop the self-censorship and exploit your original-ity. You have a unique way ofseeing things, so shouldn't it beused to develop a business idea? Adream, a personal interest, a talentor skill, or a hobby are the originsof many good businesses.

Listen to yourself, follow your inter-ests, trust your instincts; the bestidea will be the one that fascinatesyou to the point where you willenjoy developing it, testing it andtrying it out until you’re convincedit's good and that there will be amarket for it.

Innovation

Small business is an importantfactor in social and economic devel-opment because it is so dynamic. A

high percentage of innovations aredeveloped in small businesses. Butthe vitality and sometimes thesurvival of small businesses alsodepends on that capacity forinnovation. Your business will havea greater chance of being profitableif it has an innovative element thatmakes it stand out or which gives ita competitive edge or advantage.

As we have seen, you can innovateby identifying new needs, newexpectations or values. You canalso follow technological progressand take advantage of moreefficient and modern processes.New technologies can be exploitedin mainstream products that areextremely common. (Think of liquidcrystals: who doesn’t have a digitalwatch?) Combine different piecesof information, discoveries, activitysectors or fields of application;maybe a spark of genius will ignite!

Think of all the patents that arelying dormant. Many inventors who

35

choose not to or don’t want tobring their products to market mayrelease their rights or negotiatelicenses. Statistics Canada canprovide a substantial amount ofdata on consumer trends andhabits. Read the newspapers fromdifferent parts of the country orfrom around the world; newsarticles can be a wealth of informa-tion that could turn into a businessopportunity. Find out what is beingdone in foreign countries; someprocesses that are simply differentcould be successfully introducedhere.

Is your product or business novel?Novelty can attract a lot of attentionin the marketplace that may well bein your favour. A well rethought,adapted or more attractive productmay better meet the changingneeds of the marketplace and bemore popular than what is presentlyavailable. Always remember thoughthat after a while you will againhave to offer something new! Theaverage life of a product isestimated to be about seven years.After that the market oftenbecomes saturated or theconsumer tires of it. So even exist-ing business owners must beprepared to replace one businessidea with another.

Some products and servicesquickly run into a competitive crisis(for example, VHS has replacedBeta) and have a very short life(the fierce competition in thecomputer industry causes radicalchanges in products and pricingover very short periods of time).Companies in this situation surviveby delivering distinctive productsand maximum performance, and byinvesting heavily in research anddevelopment, innovation andservice.

The Birth of a Marketable Idea

The process an entrepreneurfollows while in search of ideas is

36

Pro

cess

Int

erru

pted

, R

etur

n to

Sta

ge A

A. Search For An IdeaPossible business opportunity

B. ProjectCompatabilityInteresting project?

C. Project FeasibilityRealizable project?

D. CommercialPotential of ProjectProject commercializable

DEFINE PROJECT, PREPARE BUSINESSPLAN, START BUSINESS

yes

nono

nono

yes

yes

yes

illustrated in the diagram. Theprocess can be divided into 5stages, beginning with the searchfor a marketable idea and endingwith the definition of the projectand the eventual business start-up.At each stage, questions to thinkabout are suggested to help youexplore all possibilities and tomake the decision to go on to thenext stage.

Finding an Idea

Not inspired? Look around you. Theenvironment, your workplace, thebusiness community, your leisureactivities or particular interests, aswell as change and trend forecastscan give you ideas that hadn’tcrossed your mind before. Are youkeeping your eyes open?

Look around you...

Have You . . .

❑ a specific talent or expertise tooffer?

❑ invented a product/service/concept, found a solution to aproblem people face in their daily lives?

❑ found a product to assemble orrecycle?

❑ found a use for discarded materials?

❑ found a standard product thatcould be packaged or repack-aged in order to increase salesin the marketplace?

❑ thought of modifying the packag-ing of a product to make it moreattractive, more economical,more practical or more ecological?

❑ found a way to improve and/oradd value to a common product,service or concept?

❑ identified the subcontractingneeds of large companies?

❑ thought about distributing orselling the product/service/concept to another company?

❑ observed significant social,economic, technological orenvironmental changes fromwhich you could benefit?

❑ observed an unmet need duringcommercial or regional exhibits,fairs or trade shows?

❑ anticipated new needs of theconsumer?

37

❑ observed different consumerspending habits or behaviours?

❑ discovered individuals whosetalents are not being used, orused very little?

❑ identified special events that youcould benefit from by offeringyour skills?

❑ reviewed dormant patents?

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

You Can Consult the FollowingPublications at a Bookstore orLibrary

❑ BOOKS on business

❑ MAGAZINES such as Profit,Profit Home Business, SmallBusiness Opportunities,Opportunities Canada, CanadianBusiness, Home BusinessReport, Entrepreneur, IncomeOpportunities, Success, Inc.,Venture, Your Office,

SaskBusiness, REALM,Sympatico Netlife

❑ Canadian and AmericanBUSINESS PUBLICATIONS suchas Business Periodicals Index,Canadian Almanac & Directory,Canadian Business PeriodicalsIndex, Canadian Patent OfficeRecord, U.S. Patent Office,Official Gazette Patents

❑ FOREIGN BUSINESS PUBLICATIONS

❑ THE YELLOW PAGES

❑ NEWSPAPERS explore thebusiness section, the classifiedsection (business opportunities,distributors, businesses for sale,partners or investors, franchises,money to lend, used equipmentfor sale), as well as the sectionson employment opportunities,calls for tender, auctions,bankruptcies, etc.

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

38

Have You Already Looked to theFollowing for An Idea?

❑ your local Community Futuresoffice;

❑ the Canada/SaskatchewanBusiness Service Centre;

❑ Chambers of commerce,business associations

❑ regional associations

❑ financial institutions

❑ entrepreneurship training institu-tions/organizations

❑ university research centres

❑ innovation centres

❑ technological centres, technicalinstitutes

❑ public and quasipublic organiza-tions supporting the businesscommunity at the local, regional,provincial and national level

❑ private resources in the businesscommunity

❑ fairs, trade shows

❑ franchisers, wholesalers, retailers

❑ private companies

❑ consulates and embassies

Internet sites such as:

❑ http://www.cfee.org/en/rescatching.shtml (CanadianFoundation for EconomicEducation)

❑ http://www.youthbusiness.com(YouthBusiness.com)

❑ http://abc-eac.ic.gc.ca(Aboriginal Business Canada)

❑ http://www.ainc-inac.gc.ca/ps/ys/rep/arqq-co_e.html (First Nations andInnuit Youth Business Program)

❑ http://www.cybf.ca (CanadianYouth Business Foundation)

❑ http://realm.net/wayofthinking(REALM magazine)

❑ http://www.bdc.ca (BusinessDevelopment Bank of Canada)

❑ http://www.acoa.ca/e/finan-cial/capital.shtml (YoungEntrepreneurs ConneXion – SeedCapital & Counseling Program)

❑ http://www.aybc.org (AboriginalYouth Business Council)

39

In Your Workplace, Have YouThought About . . .

❑ improving an existing productionprocess?

❑ adapting or replacing a productor service that is already avail-able?

❑ completing the line of productsor services available?

❑ considering the suggestions ofcertain clients?

❑ satisfying a need of the companythat employs you?

❑ satisfying the unsatisfied needsof clients?

❑ using your knowledge and exper-tise in another sector of activity?

❑ bringing your skills to anotherregion?

❑ improving a managementtechnique?

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

Specific Leisure Activities,Hobbies and Interests. Have YouThought About Starting aBusiness Based On . . .

❑ a manual skill?

❑ a sport?

❑ an intellectual or other kind ofinterest (reading, game, etc.)?

❑ a passion for a specific area(cars, computers, farming, etc.)?

❑ a home-made product (cooking,baking, etc.)?

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

Travelling and Imported Products,Have You Ever Seen . . .

❑ certain products/services/concepts offered in a foreignplace that could be imported andmade available here?

❑ certain products that are nowsuccessfully imported into ourmarketplace that could bemanufactured here?

40

❑ a new service/concept observedduring a trip?

To be explored:

_______________________________

_______________________________

_______________________________

Do Any of These New Trends GiveYou A Flash of Inspiration for aBusiness Idea?

❑ COCOONING (the concept ofmaking your home very comfort-able and welcoming); the homeis becoming the centre aroundwhich everything is organized

❑ The return to TRADITIONALVALUES: marriage, house, familyand work intermingled with baby-boomer values such as equalityof the sexes, individualism,instant gratification and liberalthought

❑ Increase in ETHNIC AND ELDERLYCLIENTELES, AND INTEREST INMULTICULTURALISM

❑ Diversification, regionalizationand personalization of PREFER-ENCES

❑ Increase in the number ofPEOPLE LIVING ALONE

❑ Decrease in the TIME peoplefeel they have available

❑ Increase in the level of STRESSand the need for LEISURE

❑ The increasing pace of our livesand the demand for SIMPLIFICA-TION (consumer convenience:making life easier

❑ HAVING THINGS DONE for usversus doing things ourselves isincreasingly common in businessas well as for individuals

❑ Environmental, Health andPERSONAL DEVELOPMENTCONCERNS on the rise

❑ A newMARKETABLESOCIALCONSCIENCE

❑ CONSUMERS who are moredemanding, more curious, moreknowledgeable, less gullible andlooking for quality, convenience,performance and service

❑ INFORMATION and COMPUTERI-ZATION (numeric generation)

❑ Increase in TRAINING NEEDSand WAYS OF LEARNING

❑ FASHION and trendyproducts/services

41

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

DOES ONE OF

THESE IDEAS

INSPIRE YOU

100Business Ideas

Automobile / Van:

❑ Waxing, lubrication

❑ Exterior/interior cleaning

❑ Leather and vinyl repair

❑ Windshield repair

❑ Paint touch-ups

❑ Mobile unit for off-site services

❑ Messenger service

❑ Small moves

❑ People/product transportation

Design, Production and Sales:

❑ Handicrafts

❑ Jewelry

❑ Dried flowers

❑ Lingerie

❑ Art and decorative work

❑ Gift baskets

❑ Products of wood, leather, stone, etc.

❑ Recycled products

❑ Typical, cultural products

❑ Functional products

❑ Clothing

Rental:

❑ Electrical household appliancesand furniture

❑ Apparatus of all types

❑ Costumes and ceremonial clothing

❑ Records, CDs, games and videos

❑ Sports equipment

❑ Machinery

❑ Tools

❑ Photos, paintings, works of art

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Services for Businesses:

❑ Storage

❑ Plant care

❑ Cleaning services

❑ Office equipment/supplies

❑ Invoicing

❑ Customized training

❑ Computers

❑ Messenger and transportationservices

❑ Web page design, graphic design

❑ Telephone reception, cellularphone, pager

❑ Recovery of polluting materials

❑ Writing, translation

❑ Secretarial, desktop publishingservices

❑ Security services

❑ Subcontracting

❑ Bookkeeping, accounting

❑ Human resources recruitment

❑ Electricity and telephone invoiceverification

Services for Individuals, Families

❑ Recreation, travel, hobbies

❑ Workshops, seminars, training ofall types

❑ Care for children and the elderly

❑ Bed and breakfast

❑ Services for the elderly, parents,tourists, etc.

❑ Tutoring

Residential Services

❑ Cabinetmaking

❑ Carpentry

❑ Plumbing

❑ Electrical

❑ Painting, joint treatment

❑ Doors, windows, screens

❑ Security systems

❑ Roof finishing and repair

❑ Chimney installation and sweeping

❑ Decoration

❑ Restoration, renovation

❑ Installation of anti-slip products

❑ Assembly of furniture, BBQ, etc.

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❑ House cleaning

❑ Furniture, blind and carpet cleaning

❑ Window and wall/ceiling cleaning

❑ Electrical household appliancerepair

❑ Grass cutting, leaf raking andtree pruning

❑ Snow removal

❑ Installation of outside functionaland decorative lighting (pool,landscaping, entrance)

❑ Construction of walls and lowwalls

❑ Pool maintenance

Health-Related Services:

❑ Physical activities

❑ Personal growth (books andcourses)

❑ Herbs

❑ Massage

❑ Alternative medicine

❑ Physiotherapy

❑ Psychotherapy

❑ Foot care

❑ Home recovery support

❑ Meditation and relaxationtechniques

Other Services / Products

❑ Leisure, sports activities

❑ Sharpening of knives, scissors,chainsaws, axes, skates, etc.

❑ Baking of special products

❑ Animal care and boarding

❑ Mailings

❑ Operation of dispensing equip-ment

❑ Farming, raising animals forconsumption or hunting activities

❑ Forest harvesting

❑ Imports and sales

❑ Internet (services to be offered)

❑ Personal safety objects

❑ Planning of events and parties

❑ Tourism products: guided tours,packages, outdoor activities,hunting, fishing

❑ Recycling of all kinds

❑ Repair of skidoos, snowblowers,lawnmowers and small motors

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❑ Photography or video services

❑ Caterer, prepared foods, special-ized foods

❑ Catalogue or home sales

To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

No luck yet, BUT A CERTAINPRODUCT/SERVICE/CONCEPTHAS PIQUED YOUR INTEREST?There is often more than one wayto see things! The same applies toa product/service/concept! THEFOLLOWING QUESTIONS MAYHELP YOU TO HONE IN ON ANIDEA?

How Can I ...

❑ make it safer, cleaner, slower orfaster?

❑ make it more practical or lessexpensive?

❑ make it portable, movable ordisposable?

❑ make it easier to use?

❑ make it more attractive orappealing?

❑ make it lighter, stronger,adjustable, thinner, morecompact?

❑ add new functions?

❑ make it multi-purpose?

❑ combine it or add it to otherproducts or services?

❑ eliminate or reduce certainirritants or weaknesses?

❑ improve its availability on themarket and its distribution?

❑ make it or do it at home andthereby reduce certainexpenses?

❑ find subcontractors to manufac-ture my product?

❑ facilitate the packaging, storingand transportation of theproduct?

❑ reduce replacement, repair orreconditioning costs?

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To be explored:

_______________________________

_______________________________

_______________________________

_______________________________

Have you found one or two ideas?Good for you! Go on to the nextphase then. If you haven't found anidea yet, think about it some more. . . good things come to those who wait!

Choosing a Business Idea

If your idea seems brilliant, getgoing; but take the time to developall aspects of it. Don’t dismiss anyobjections or obstacles withoutcarefully analyzing them. Discussyour idea with family and friendsand take their comments intoconsideration. They might suggest

interesting changes or help youthink of possible improvements. Agood idea is only the first step indeveloping a business. A good ideacannot ensure success if otheressential factors are not in place; it needs to be checked thoroughlybefore starting the business.Examination of the idea is alwayscheaper than the expense of abusiness failure. In addition toevaluating each idea, you mightalso consider alternative ideas that may have more promise.

It is always difficult to give uppreconceived ideas about thequality of your product or service!Be very critical; look at yourbusiness through the eyes ofsomeone who might have tofinance it. Your investor may be thefirst person that you will have toconvince.

Don’t forget your competitors. Evenif your product or service is innova-tive, it is probably not unique.Consider its advantages, but alsoits weak points – you may be ableto improve your concept nowwithout too much expense.

This careful evaluation of your ideawill also get you started on yourbusiness plan.

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The first chance you might use yourbusiness plan is to give potentialinvestors the pertinent informationabout your idea: the product orservice you want to offer, or yourplan to buy a business or acquire afranchise. As you proceed to createor acquire a business take intoaccount the unique aspects.

You should describe the productyou have created its characteris-tics, its possible uses, what distin-guishes it from similar productsalready on the market, etc. Youshould also specify what stage ofdevelopment has been achievedand how it might be furtheradapted and developed as timegoes on. You should also indicate ifyou have a patent or a trade secret. . . Make sure that all the interest-ing information which mightconvince your potential investors isincluded - be a good salesperson!

If you have described your futureenterprise, explained the field ofactivity and the industrial sector itwill be in, pointed out economicfactors and trends which mightaffect it, each investor will be in abetter position to evaluate you andthe potential of your idea. Is thebusiness you want to start part ofa growing industry or market? Is

the market controlled by only a fewlarge competitors? Is it possible togenerate adequate profits from thesale of products or services in thisindustry? These and other ques-tions will be of interest to investorsand, of course, should also be ofinterest to you.

If you are offering a service, yourbusiness plan should contain mostof the same information including:description, particular features,strong points and weak points,method of providing the service,possibilities of adaptation, etc. Aplan to buy a business or acquire a franchise must also be describedand explained, including advan-tages, disadvantages and projec-tions, so as to convince an investorthat what you are proposing is agood business opportunity.

In addition to its intrinsic value andinnovative superiority, yourbusiness idea must also be in syncwith your own interests and motiva-tion. There must be a good “fit”between you and the business youhave chosen. There is no usedevoting a lot of time and most ofyour energy to a product or busi-ness that does not correspond toyour own interests and need forachievement, or does not excite.

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Remember, it is always easier tostart a business in which youalready have some experience,knowledge, or industry contacts;these are personal assets that youcannot disregard.

Project Compatibility

Is your business idea compatiblewith who you are as a person andwho you want to be as an entrepre-neur? See how many times you cansay “yes” when completing thefollowing sentence:

This idea is an extension of:

❑ my personal interests

❑ my aptitudes

❑ my values

❑ my experience

❑ my training, my abilities

❑ my need for autonomy (my own boss)

❑ my need for accomplishment(accepting challenges)

❑ my creative spirit

❑ my need for social recognition

❑ my need for respect from familyand friends

❑ my desire to make money

❑ my desire for flexibility

❑ my desire to build something ofvalue

❑ my desire to make a contributionto my community and family.

If you have answered “yes” moreoften than “no” and are certain ofthe compatibility of your project, gofor it . . . but not before youconsider the next stages, which willhelp you to determine if yourbusiness idea has a future.

Project Feasibility

You can now complete this nextpart because you are in a positionto determine if there are obstaclesto the start up of your project thatyou may still have to take intoaccount.

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Possible obstacles

❑ Can I realize my project usingexisting technology?

❑ Do I have access to this technology?

❑ Do I have enough technical know-how to begin manufacturing myproduct or performing theservice that I want to offer?

❑ Can my particular electricalenergy needs be met?

❑ Can I obtain the necessary rawmaterials or supplies?

❑ Can I handle the special equipment needed?

❑ Can I find the specialized humanresources I need?

❑ Do I have a good knowledge ofthe industry sector and its distribution network?

❑ Do I know enough about themanagement side of mybusiness?

❑ Can I find a good businesslocation and space?

❑ Is the area where I want to setup my business receptive to thiskind of business?

❑ Does the area reflect the valuesof my business?

❑ Am I able to make the necessarycapital outlay?

❑ Can I obtain outside financing ifnecessary?

❑ Does the business generateadequate profitability levels tomake it attractive?

❑ Is the level of financial risk toohigh?

❑ Can I meet all legal requirements?

All of these questions may not have the same importance for yourproposed business, and some maynot apply at all. Perhaps they don’tcover all the particular aspects ofyour business. It is important toidentify all possible risks or obsta-cles to the realization of your ideaand to find a solution for them. Ifyour answer to some questions isno, how will you overcome theobstacle?

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Evaluation of the BusinessPotential of Your Idea /Project

After you have determined whetheror not your project is feasible, it’stime to think about its businesspotential. Is your idea marketable?Can your project be viable andprofitable?

The “Tests”

Any successful entrepreneur knowsthat it's just common sense to“test” a new idea, service or productso that critical information such asthe level of interest and/or size ofyour potential market can be deter-mined before venturing into design,manufacturing or marketing – ineffect, before investing time, energyand significant sums of money.

“Testing” is done for three mainreasons:

• to verify if there is a market, thatis, a sufficient number of clients,despite existing competition

• to have a product evaluated

• to have the offer validated, thatis, the conditions for marketing aservice or product

Questions that can be asked of apotential client:

❑ Do you currently buy aproduct/service/concept similarto mine? Are you satisfied withit? Why? Why not?

❑ Would you buy myproduct/service/concept?

❑ How much would you buy and atwhat price? How many times peryear (if applicable)?

❑ What do you like or dislike aboutmy product/service/concept?

❑ How would you improve it? Whatwould you do to set it apart fromthe competition?

❑ What do you think of the designor presentation of my product?Does it have sales appeal?

❑ Where would you buy it? Throughwhich distribution channel?

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What about your questions?

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

_______________________________

The Concept Test

The purpose of this test is to getan overview of what your potentialclients think of your businessidea/project and their perception ofthe product/service/concept thatyou want to sell them.

This first test will also allow you tobetter identify your clientele’sneeds and to improve or repositionyour initial idea. If you receive whatyou believe are too many negativecomments, then you may considerstopping your research and/ormaking any necessary adjustmentswithout losing too much time ormoney.

The Product Usage Test

With the product usage test, thepotential client sees a sample ofthe new product. While this test isnot as extensive as a market studymight be one of the advantages isa lower cost and immediateconsumer reaction directly to theentrepreneur.

Important:

Neither of these tests, even if theresults are positive, will guaranteethat your project will be successful;however, they are indicators. If theresponses you receive are quiteenthusiastic and if the differencebetween your estimates for thecost of the product or service andits selling price appears to beprofitable, then your project has agood chance of succeeding. If theresponses are not certain, youshould review your project beforegoing any further.

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Stop . . . Or Go On?

You have now reached the end ofStep 1. If you’ve determined thatyou’ve found an interestingbusiness project that seems viableand profitable, then in Step 2 you’llgo one step further and learn howto start that business.

But before going any further, youmust make a decision. Will you:

• STOP THE PROCESS NOWbecause you have not found abusiness project that you wouldlike to pursue?

• INTERRUPT THE PROCESS withthe intention of picking up againsometime in the future or whenconditions are more favorable? or

• CONTINUE WITH THE PROCESS?Remember to consult with yoursmall business specialist. Asbefore, they will discuss yourbusiness ideas and support youwhere they can. Reaffirm yourhopes, your dreams, yourdecisions – they’re there tolisten, to counsel, to support.

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The Prerequisites forGoing Into Business

By examining characteristicscommon to entrepreneurs we havebeen able to pinpoint what ismeant by the “entrepreneurialspirit” -- that unique mixture ofpsychological characteristics andattitudes. However, even while yourentrepreneurial spirit is critical tostarting a business, by itself, it willnot be able to carry a poorlyplanned business opportunity.

The potential entrepreneur looks foropportunity, is on the lookout for aneed to be satisfied, and tries toimagine a novel solution: an origi-nal concept, new or improved

products or services . . . You mightsay that he needs an idea todevelop.

To launch a business enterprise,the individual must have at his orher disposal the necessary finan-cial and human resources, technol-ogy, and raw materials and that heor she is prepared to start andmanage the project. This meanshaving talent, sufficient knowledgeand experience

These elements can be expressedas a kind of start-up equationshowing the prerequisites forentrepreneurial action.

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How to Start a Business

Step 2

Start-Up Equation

Entrepreneurial spirit +

IDEA +

Resources +

= Know-how

Become a SuccessfulEntrepreneur

All these elements come togetherto ensure the start-up and successof a venture, although their relativeimportance may vary. Must theentrepreneur have all these prereq-uisites? Are some of them essen-tial and others of secondary impor-tance? Is there a winningequation? Even if they share somecommon characteristics, entrepre-neurs may be very different fromone another both in terms ofcharacteristics and the way theyapproach the start-up and develop-ment of their business. So itseems more exact to say there are various winning combinations.

Success is most likely linked to the art of building on personalstrengths and improving weaknes-ses. To be an entrepreneur, itseems that above all you must

believe in yourself and your idea,be ready to take action, be deter-mined and willing to work hard.

Launching a New Enterprise

Before seriously pursuing your ideayou should estimate the underlyingcosts of setting up the necessarystructures for the commercializa-tion of your product, service orconcept. These costs may seemminimal if you plan to start in acorner of your basement. But youwill soon realize that a business,no matter how small, demandsmore space than you imagined.Basing your business in the homemeans “free rent” and you will beable to write off expenses forbusiness use of the home againstyour employment or other income.But even so, improvements orrenovations may be needed, andover time, you will likely have toexplore renting premises or buyinga building to accommodate thegrowth of the business or toprovide a better location.

You will have to buy new or usedequipment materials and supplies,and inventory, if you plan to open astore. If you decide to make anoutright purchase, then you must

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make the total capital investmentup front. This could require signifi-cant amounts of your own money or mean an increase in debt tofinance the purchase. You mayreduce immediate financial pres-sures through renting or leasingoptions. Each of these decisionsprobably involves some trade-off,so you will have to decide which isbest, given your unique set of circumstances.

Starting a business will alsorequire a number of preliminarysteps – some travelling, some out-of-pocket expenses, and a lot oftime. You will have to take intoaccount costs for any legal, profes-sional or technical advice you mayneed. Market analysis, productionof a prototype or samples, andproduct testing all cost money, asdo permits, licensing rights, andpatents.

Starting a business from scratchcan be very gratifying for the innov-ative and creative entrepreneur, butit demands precision and effort, soyou must be able to count on thesupport of your family. For longperiods of time all your energy willbe devoted to setting up yourbusiness, and your family life may

be disrupted. Will you and yourfamily be able to cope with that?You must think about this. Althoughit is not a financial cost, theemotional costs may be high andshould be considered.

You may have to mortgage personalproperty or other possessions toraise the money to start yourbusiness. Are you willing to dothis? If friends and acquaintancescontribute time and money, howassuredly can you guarantee theirinvestment? And if the businessdoesn’t work out, what damagecould be caused? What would yourown losses be? Entrepreneurs saythey learn from their failures. Couldyou find the energy to bounce backor would you come out of it withirreparable damage to you health,your morale, your finances, and/oryour family relationships?

A new business requires a fairlylarge personal investment, as riskcapital may be difficult to obtain.Financial institutions are sometimesreluctant to lend money to any newbusiness, particularly

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