Bootstrapping your Business

March 23rd, 2011

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What we do• Support the growth of

new and existing businesses with innovative opportunities

• Facilitate connections• Innovator Member

Program

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How do I finance growth?• Equity – your own investment

– Leverage it• Love money – friends and family

– Leverage it• Angel Investors

– Leverage them• Loans• Government support programs

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Programs frequently accessed by business

• Northern Ontario Heritage Fund (NOHFC)• Employer supports

– Youth Interns (FedNor and NOHFC)– IRAP and OCE– Wage Subsidies

• IRAP• Canadian Youth Business Foundation

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Government Sources• http://www.gfundsonline.com/index.php

• http://www.ontario.ca/en/business_program/categories/ONT04_036384.html?category=&itemCount=200&sOrder=Desc

• http://www.sse.gov.on.ca/medt/investinontario/en/Pages/Government_Programs.aspx

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Bank Financing• Know what you need

– Short term vs. long term financing– Set objectives

• Shop around– Not all banks are the same

• Prepare– Fact vs. Fiction– Performance History

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Types of Bank Financing

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Show Me The Money• Bankers are methodical not intuitive

– Use logic not emotion• Prepare a proposal

– Company description, management team, performance history, marketing and production plan, human resources

• Remember the 5 C’s of lending!!!!

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Strategies to use• Illustrate “skin in the game”• Be proactive – plan• Manage your cashflow (Toys or Tools?)• Do your homework - research• Show market traction• Communicate• Utilize your resources, build the team• Stage your growth – milestones, credibility

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Thank-you!• Let us know if we can

helpJudy Sander

NWO Innovation Centre

1294 Balmoral Street,

Suite 150

Thunder Bay, ON P7B 5Z5

807-768-6682

judy@nwoinnovation.ca