YOUTHSTART’S
GUIDANCE
ON LAUNCHING
A BUSINESS
1
Meet the Team
What is Enactus?
en•act•us
Enactus is a community of student, academic and business leaders committed to using the
power of entrepreneurial action to transform lives and shape a better more sustainable
world.
Entrepreneurial—having the perspective to see an opportunity and the talent to create
value from that opportunity;
Action—the willingness to do something and the commitment to see it through even when
the outcome is not guaranteed;
Us—a group of people who see themselves connected in some important way; individuals
that are part of a greater whole.
Enactus is an international non-profit organization that brings together student, academic
and business leaders who are committed to using the power of entrepreneurial action to
improve the quality of life and standard of living for people in need. Guided by academic
advisors and business experts, the student leaders of Enactus create and implement
community empowerment projects around the globe. The experience not only transforms
lives, it helps students develop the kind of talent and perspective that are essential to
leadership in an ever-more complicated and challenging world.
Our Commitment
Together we pledge to take action. Together we commit to apply our passions and talents
and ideas to impact as many lives as we can. Not to hand out help to people in need, but
to work side-by-side with them to create opportunity. So every person and community we
touch is empowered to live up to their fullest potential.
Enactus McGill
Enactus McGill is one of the chapters of Enactus that was created at McGill University by a
group of students passionate about making a difference in the world while gaining valuable
experience from doing so. Enactus McGill’s mission is to create, develop, and implement
projects that empower individuals and communities. We start by helping young people use
the power of social business to contribute positively to their community and environment.
Sources: http://enactus.org/
2
Meet the Team
What is YouthStart?
YouthStart!
What is YouthStart:
YouthStart is an Enactus project created by McGill students. Believing that an
entrepreneurial spirit can be created and learned at any age, our goal is to generate an
entrepreneurial environment in local high school and CEGEP communities. Our goal is to
develop a 3 month program where students will work together in the process of
developing a business or product idea, and with our guidance, design a realistic business
plan to help launch their own business in the Montreal community.
We want students to come out of our program with a profit generating business,
developed through a guided process that emphasizes applicable business skills like
business organization, entrepreneurial idea generation, market research and development,
and the systematic planning necessary to guide a product or service from brainstorm to
reality.
How Do We Do It:
Our unique program design focuses on teaching fundamental and applicable
entrepreneurial skills to our participants through a combination of quick, interactive
tutorials, mentoring by business experts, local business leaders, as well as our own team of
business students and McGill Entrepreneurs, and critical business simulation designed to
give students the tools to launch a business.
The Team:
Our dedicated group of mentors that will guide the students in the program include
business experts, local business leaders and a talented team of college students with
diverse backgrounds in business and entrepreneurial work. With a program designed on
applicable skills our mentors will be an active hand guiding the students along through
each state of the business design, all the way to the launch of the product. Through visual
and interactive presentations, Q&A sessions, guest speakers and a personal business
coaching, each student team has an expert group to guide them to success.
Who is Eligible?
Any local High School or CEGEP student between ages 14-17 is eligible to join.
3
Meet the Team
What is YouthStart?
YouthStart!
What Do We Teach:
Our sessions of interactive practice of business skills, critical business concepts, and a step
- by - step guided approach to creating a business will leave students with a clear and
accurate picture of what it takes to launch an idea from design to market, and a set of skills
for the modern entrepreneurial world that they will have developed by actually creating a
profit making business.
The sessions will focus on the following topics:
What makes a successful Entrepreneur
How to develop a viable business idea
How to create a business plan
How to run a business organization
How to understand a market
How to launch a product
How to brand a product
How to raise capital
How to apply for bank loans
How to keep track of money
How to estimate risk assessment and profit returns
How to register a business
4
HOW TO CREATE A
BUSINESS
PLAN
5
Introduction
What is a Business Plan?
"Failing to plan is planning to fail.“
- Alan Lakein
A business plan describes how a new business is going to achieve its goals, establish itself
and become successful. It is a formal statement of a set of business goals, the reasons they
are believed to be attainable, and the plan for reaching those goals. Formally, a business
plan is:
A written document describing the nature of the business, the sales and marketing
strategy, and the financial background, and containing a projected profit and loss
statement. (Sources: http://www.entrepreneur.com/encyclopedia/business-plan)
The idea behind putting together a business plan is to enable owners to have a more
defined picture of potential costs and drawbacks to certain business decisions and to help
them modify accordingly before implementing these ideas.
The Seven Key Sections Of A Business Plan:
1. Executive summary
Provides an overview of the business concept, summarizing the other sections of the plan.
2. Business Overview
Covers details regarding the business’s history, vision and/or mission, objectives, and the
ownership structure.
3. Products and Services
Expands upon the products and services, including features and benefits, competitive
advantages, and, if marketing a product, how and where the products will be produced.
4. Industry overview
Demonstrates the viability of the business by discussing the size and growth of the
industry, the key markets within the industry, target markets, and the competition.
5. Marketing Strategy
Describes the target market segments, differentiation of the products or services, and its’
unique selling proposition (USP). Discusses the pricing and promotion strategies, including
promotional programs for each of the target market segments, and marketing tactics.
6. Operations Plan
Provide a profile of the management team, the human resources plan, the business
location(s) and facilities, the production plan (if applicable), and an overview of day-to-day
operations.
7. Financial plan
Shows three years’ worth of projected financial statements, including income statements,
pro-forma balance sheets, and monthly cash flow and annual cash flow statements.
6
Introduction
How To Come Up With a Business Idea?
Having a business plan is important for every entrepreneur, but
it is even more important to have a concrete viable business
idea first. This can be very hard sometimes. Here are some tips
and questions you can use while brainstorming for an idea.
Tips On How To Come Up With A Business Idea:
1. Think of the things you are good at: your strengths, talents, hobbies, and interests. You
are more likely to be successful if you are passionate about what you do.
2. Pay attention to the world around you. What can you do to make the world a better
place?
3. Your business should change the way of living, even in a small way.
4. Think of the difficulties you face in your life (small or big). Try to come up with a product
or service that would help solve these problems. Find a problem, think of a solution, and
develop an original idea. What can improve your daily life to make it easier?
5. Discover market opportunities that can be taken advantage of.
6. Analyze if there are any products or services that you could provide better than the
competitors. How will your product or service stand out from the others? Why is it better
than the rest? Think quality, availability, price.
7. Think of global or local trends, which can lead to a marketable product or service. Try to
come up with a business idea what will capitalize on a current trend.
8. Try to solve any existing limitations.
9. Ask yourself what type of products or services would you use?
10. Think “outside the box”, be creative.
11. Keep a small notebook and write down all the ideas that come to your head. In
moments of inspiration, write down your ideas, then come back to them and analyze how
realistic and useful they are.
12. Do your research. Find out if the product or service already exists. Is there already a
market for your idea or is it possible to create one?
13. Think it through to the smallest details. Make sure it is possible to implement your idea
in the real world.
14. Be reasonable and know your limits. Don’t create a business that goes far beyond your
qualifications or your education. You should know what you are doing in order to provide a
high quality product that assures your customers come back for more.
15. Think like an accountant. Calculate how much money / capital will be required to
launch your business. What resources are available to you to help raise these funds? How
will you generate enough money to set the company in motion?
16. Be adventurous and discover new things. A fresh view on something usually brings
innovation and creates opportunity for an original business idea.
17. Make sure to fully develop your idea before you start writing a business plan for it.
7
Introduction
Business Plan Outline
Defining a
Company:
Executive Summary
Defining a Product:
& Service
Business Overview
SWOT Analysis
Strategic Focus and
Plan:
Core Values
Mission
Objectives
Operations and
Management
Competitive
Advantage
Product Life Cycle
Defining a Market:
Industry Overview:
Market Analysis
Porter 5 Forces
Defining a
Customer:
Consumer Profiling:
Segmentation
Defining a
Marketing Strategy:
The Marketing Mix
Positioning
Defining a Financial
Plan:
Financial
Projections
8
DEFINING A COMPANY
EXECUTIVE SUMMARY
01
An executive summary is the first and most important
section of your business plan. It is usually the first
page read by potential investors, and should aim at
grabbing their interest.
This section should include a summary of each part
covered in the rest of the business plan such as the
key objectives of your business and your plan,
ownership structure, management team, your product
or service offering, competitive advantages, target
market(s), customer description, marketing strategy,
and a summary of your financial projections. It should
highlight the strengths of your overall plan and
therefore be the last section you write. This section
briefly tells your reader where your company is, where
you want to take it, and why your business idea will be
successful.
Executive Summary
A short summary of the
objectives, structure,
products and/or
services, marketing
plans, operations, etc. of
the proposed business
that is placed at the
beginning of the
business plan and is
designed to attract
investors and help with
receiving funding.
The executive summary should be 1-2 pages long and
should highlight the strengths of your overall plan and
therefore be the last section you write.
9
DEFINING A COMPANY
BUSINESS OVERVIEW
02
A business overview is the section of a business plan that provides a high-level review of
the different elements of your business. This is akin to an extended elevator pitch and can
help readers quickly understand the goal of your business and its unique proposition. This
is the part where you explain the business goals, values and vision. Unlike the executive
summary, which must be concise, this is where you can elaborate on the details of the
business. The who, what, where, when, and why of the business should fall into place and
readers should have a clear understanding of how the company will function.
It should include:
• a brief description of the industry and the future possibilities it offers
• description of the structure of your business: the type of operation, legal form
(partnership, corporation etc.)
The 5Ws and 1H:
• Who will you sell to: customers?
• What: your product?
• Where: distribution?
• When: the timeline of your project?
• How: the support systems such as
advertising and promotion?
The 5Ws and 1H
Who
What
Where
When
Why
How
10
DEFINING A COMPANY
STRATEGIC FOCUS
03
A mission statement is a sentence describing a
company's function, markets and competitive
advantages. It identifies your business goals and
philosophies and defines what an organization is, why
it exists, its reason for being. At a minimum, your
mission statement should define who your primary
customers are and which market you operate in, as
well as identify the products and services you produce
and the technology you use. Mission statements must
be clear and to the point. The length is usually only 525 words. It is very important that all employees know
and understand the company’s mission so that they
can reflect it in their behavior.
Mission Statement
A statement of the
organization’s function in
society, its values,
visions, and purposes for
its work; usually
identifies the
organization’s customers,
products, and means by
which it operates.
Examples Of Mission Statements:
Amazon: Amazon’s vision is to be earth’s most customer centric company; to build a place
where people can come to find and discover anything they might want to buy online.
Apple: Apple is committed to bringing the best personal computing experience to
students, educators, creative professionals and consumers around the world through its
innovative hardware, software and Internet offerings.
FedEx Corporation: FedEx will produce superior financial returns for shareowners by
providing high value-added supply chain, transportation, business and related information
services through focused operating companies. Customer requirements will be met in the
highest quality manner appropriate to each market segment served. FedEx will strive to
develop mutually rewarding relationships with its employees, partners and suppliers. Safety
will be the first consideration in all operations. Corporate activities will be conducted to the
highest ethical and professional standards.
Sources:
http://drdianehamilton.wordpress.com/2011/01/13/top-10-company-missionstatements-in-2011/
http://www.missionstatements.com/fortune_500_mission_statements.html
11
DEFINING A PRODUCT & SERVICE
SWOT ANALYSIS
04
SWOT analysis is a simple but useful framework for
analyzing your project's strengths and weaknesses, as
well as the opportunities and threats you face. It can
be used to characterize products, services, product
lines and other business/marketing projects, including
whole organizations. This method is widely used by
marketing professionals in their work.
Internal Origin:
• Strengths: What are the elements/advantages
that help this project be successful?
• Weaknesses: What are some of the elements of
this project that hinder its performance?
SWOT Analysis
An acronym that
describes an
organization’s
assessment of its
internal Strengths and
Weaknesses and its
external Opportunities
and Threats.
Tip:
When looking at your
strengths, ask yourself
whether these open up
any opportunities.
Alternatively, see if
eliminating weaknesses
could also open up
opportunities.
External Origin:
• Opportunities: What are some of the trends, structural elements of the market that
this project can exploit on?
• Threats: What are some of the trends, structural elements or changes of the market
that could obstruct this project?
Using SWOT analysis can be very beneficial as it can help you see opportunities that you
are well places to take advantage of. Also, by understanding the weaknesses of your
business, you can manage and eliminate threats that would otherwise catch you off-guard.
Moreover, by looking at your project and the one of your competitors using the SWOT
analysis, you can put together a strategy that helps you distinguish yourself from your
competitors. This will allow you to compete successfully in your market.
12
DEFINING A PRODUCT & SERVICE
COMPETITIVE ADVANTAGE
05
When companies earn the highest profits within their
industry, they are said to have a competitive
advantage.
A competitive advantage allows the firm to
considerably increase its profits while delivering
superior value to its customers. It can be attained
through a variety of strategies:
• Cost leadership strategy: aims to offer products and
services at the lowest price in the industry.
• Differentiation strategy: aims to offer a product or
service that is unique and that competitors cannot
duplicate easily.
• Cost focus: seeks to be the lowest priced in only
one or very few market segments.
• Differentiation focus: aims to differentiate in only
one or very few market segments; specializes in
servicing one or few niche market(s).
To gain a competitive advantage a firm has to leverage
its resources (both tangible and intangible) and its
capabilities.
Capabilities
Recourses
Distinctive
competencies
Cost advantage
or
Differentiation advantage
Competitive Advantage
A relative advantage of
one business over
another that is
sustainable and that
translates into a benefit
of being dominant in a
given market by
successfully meeting the
criteria that is most
important to target
customers.
Differentiation Advantage
A sustainable product or
service that has an
advantage of charging a
higher price due to a
difference in product
offerings, higher quality,
advanced technology ,
brand image, or superior
service that successfully
fulfills the target
consumers wants.
Value
creation
13
DEFINING A PRODUCT & SERVICE
PRODUCT LIFE CYCLE
06
Products, just like people, have life cycles. Product life
cycle describes the four stages a new product
undergoes in the marketplace. The two curves shown
in the graph are the total industry revenue and the
total industry profit. They show the sum of sales
revenue and profit that all the firms in the
marketplace earn from producing this particular
product.
Product Life Cycle
The four stages a
product goes through
when introduced to a
new market:
introduction, growth,
maturity, and decline.
14
Defining a Product & Service
06 Product Life Cycle
Introduction: When a product is first introduced, sales grow slowly and profit is either
minimal or negative. The goal is to create awareness, inform and stimulate trial.
Skimming: The price is set very high and progressively brought down for the firm to recover
from its costs.
• Penetration pricing: The price is set very low to attract new customers.
• Growth: Sales grow at an increasing rate, which attracts competition. The goal is to
differentiate itself from the new comers through heavy brand advertising.
Maturity: Sales continue to increase but slower than before. The market is almost
saturated; prices and profits begin to fall.
Decline: Signaled by a long-run drop in sales, many competitors exit the market, the decline
is usually the result of changes in consumer taste and the array of available substitutes.
Strategies to overcome decline are repositioning of a product by changing its perception
(cf. Positioning), find new use for the product, find new target market etc.
• Deletion: Dropping the product completely, discontinued production.
• Harvesting: Keeping the product while reducing the marketing effort allocated to it.
Different Types Of Products And Their Life Cycles:
High Learning Product:
For products that are
complicated to use,
significant learning is
required from the
customer. The
introductory stage is
longer.
Low Learning
Product: For products
that are easy to use,
little learning is
required from
consumers. Sales
begin immediately.
Fashion Product:
Length of the cycles
may be years or
decades. Think of
examples from the
fashion industry.
Fad Product: Rapid
sales on
introduction and
equally rapid
decline. Often
happens with
novelties.
15
DEFINING A MARKET
MARKET ANALYSIS
07
A market analysis is undertaken to identify business
opportunities and their monetary value. (Think
SWOT!) It helps to assess the attractiveness and the
structure and forces that govern a specific market
within a certain industry. It is used to define a market,
work out their forecasts and better determine the
action plan for staying profitable and on trend.
Changes in the market environment are a source of
opportunities and threats. Environmental scanning is a
process of monitoring used to keep track of changes
occurring in the evolving marketplace.
Environmental Scanning
A method of continually
gaining information
about events occurring
outside the organization
to identify and interpret
potential trends and
opportunities to tail an
action plan around
them.
Trends identified by an environmental scan with criteria examples:
Political
Economic
Social
Technological
Competitive
Legislation; regulatory bodies and processes; intellectual property and
privacy protection; government policies; trading policies; funding, grants
and initiatives; market pressure-groups; wars and conflicts.
Home economy; economy trends; general taxation; taxation specific to
product/services; specific industry factors; customer/end-user drivers;
interest/ exchange rates; international trade; monetary issues.
Lifestyle trends; demographics; consumer attitudes and opinions; media
views; law changes affecting social factors; brand, company, technology
image; consumer buying patterns and trends; fashion and role models;
major events and influences; ethnic/religious factors; ethical issues.
Competing technology; development research funding;
associated/dependent technologies; replacement technology/solutions;
manufacturing maturity and capacity; information and communications;
technology legislation; innovation potential; technology access;
licensing, patents.
Forms of competition; Porter 5 forces: barriers to entry and exit, power
of buyers and suppliers, existing competition and substitutes; pure-play
online competitors.
16
DEFINING A MARKET
PORTER FIVE FORCES
08
Porter 5 forces analysis is used to determine the
attractiveness of a market.
The model is named after Michael E. Porter and
analyzes 5 competitive forces that shape every
industry. It serves to determine an industry's
weaknesses and strengths that affect the company’s
ability to serve its customers and make a profit. A
change in the industry usually entails a company to
reevaluate its strategy and position in the
marketplace.
The first four forces are the threat of new entrants,
the threat of substitutes, the bargaining power of
suppliers, and the bargaining power of buyers. They
influence the fifth force, the level of competitive
rivalry in the industry. Each of these forces has several
elements and determining factor to them.
Porter 5 Forces Analysis
A model for industry
analysis that consists of
five distinct forces
outlined by M.E. Porter,
which, when analyzed
together, determine an
industry’s long-term
profitability,
attractiveness, and
number of competitors.
Competition
Alternative firms that
could provide a product
to satisfy a specific
market’s need that the
given organization also
tries to satisfy.
17
Defining a Market
08 Porter Five Forces Analysis
Threat Of New Entrants:
Depends on entry and exit barriers. Barriers to entry/exit can be related to the costs of
entering/exiting the market, for example the aerospace industry has high barriers to entry
and exit due to the heavy investments that it entails. The more profitable a market is, the
higher the number of new entrants.
Threat Of Substitutes:
Relates to what products/services are alternatives to the product/service that you are
offering. The higher the number of alternatives, the less attractive is the industry.
Bargaining Power Of Suppliers:
Relates to the amount of pressure your suppliers have in that market. For example, when
there are only a few suppliers for a large number of firms in the industry, the bargaining
power of suppliers is high, and vice-versa.
Bargaining Power Of Buyers:
Relates to the amount of pressure buyers have in that market. For example, the greater
customers’ ability to switch to substitutes, the higher their bargaining power.
18
DEFINING A CUSTOMER
SEGMENTATION
09
Though commonly defined as being advertising,
marketing encompasses all activities and processes
aimed at creating, communicating, delivering and
exchanging offerings. The main task of the marketing
department is to deliver the right product or service to
the right customers by using the right means of
communication, while respecting the company's
strategy. Contemporary marketing is focused around
the customer: anticipating, identifying, and satisfying
customers' needs and wants while building loyalty.
Marketing requires thorough knowledge of both the
marketplace and its consumers. Thus, advertising,
marketing research, and brand management are just a
few examples of marketing activities.
Consumer profiling is a way to describe consumers by
categorizing them into different representative groups.
In order to sell a product/service, one must identify
who their customers are. Consumer profiling allows
for target marketing. It is more efficient for a company
to target advertising to a specific market segment.
Consumers can be identified by various preferences,
lifestyles, shopping habits, attributes, and traits. It is
useful to categorize customers into different groups
and to create personas that represent each of these
groups. Market segmentation serves as a mean for
understanding the customer. Dividing the market into
different segments allows for efficient strategy
drafting and marketing. A deep understanding of your
customers’ needs and wants will help choose how,
where, and when to sell your product. There are
different ways to segment consumer markets. The
main dimensions that are used to characterize
consumers through segmentation are geographic,
demographic, psychographic, and behavioral.
Consumer Profiling
The process of
categorizing relevant
information to describe
the characteristics of
different customer
groups and to
understand what drives
their purchasing
decisions.
Target Market
One or more specific
groups of potential
consumers towards
which a certain
marketing program for a
product, service, or an
organization as a whole
is directed.
Market Segmentation
A process of dividing
potential consumers into
different groups, or
segments, that have
common needs, wants,
and values and will
respond similarly to a
specific marketing
program.
19
Defining a Customer
09 Segmentation
Segmentation variables and breakdowns
for Canadian consumer markets
Main Dimensions
Variables
Typical Breakdowns
Geographic
Segmentation
Region
City or town area size
Quebec; Prairies; etc.
Under 5,000; 5,000-19,999;
20,000-49,999; 50,000-99,999;
100,000-249,999; 250,000499,999; 500,000-999,999;
1,000,000-3,999,999;
4,000,000+
Urban; suburban; rural
Density
Demographic
Segmentation
Age
Gender
Family size
Life stage
Birth era
Race
Marital status
Education
Occupation
Infant; under 6; 6-11; 12-17; 1824; 25-34; 35-49; 50-64; 65+
Male; female
1-2; 3-4; 5+
Infant; preschool; child; youth;
adolescent; adult; senior
Baby Boomer (1946-1964);
Generation X (1965-1976); Baby
Boomlet/Generation Y (19771994)
White; Black; Asian; Native;
other
Never married; married;
separated; divorced; widowed
Grade school or less; some high
school; high school graduate;
some university; university
graduate
Professional; managerial;
clerical; sales; laborers;
students; retired; housewives;
unemployed
20
Defining a Customer
09 Segmentation
Segmentation variables and breakdowns
for Canadian consumer markets
Main Dimensions
Variables
Typical Breakdowns
Demographic
Segmentation
Income
Under $10,000; $10,000$19,999; $20,000-$29,999;
$30,000-$39,999; $40,000$54,999; $55,000-$74,999;
$75,000+
Psychographic
Segmentation
Personality
Open-minded, conscientious,
extraverted, introverted,
agreeable, neurotic
Hippie; Rural; Traditional;
Cosmopolitan Elite; Les Chic;
etc.
Lifestyle
Behavioral
Segmentation
Benefits sought
Usage rate
User status
Loyalty status
Quality; service; low price
Light user; medium user; heavy
user
Nonuser; ex-user; prospect;
first-time user; regular user
None; medium; strong
Sources:
Frederick G. Crane, Roger A.Kerin, Steven W. Hartley, William Rudelius. «Marketing.» Ch. 9 in
Marketing, written by Roger A.Kerin, Steven W. Hartley, William Rudelius Frederick G. Crane,
236. McGraw-Hill Ryerson Companies, 2011, 2009.
21
MARKETING STRATEGY
THE MARKETING MIX
10
The Marketing Mix, also knows as the “4 Ps”, is one of
the pillars of marketing. It is the marketing manager’s
group of controllable factors, the marketing actions of
product, price, promotion, and place that he or she
can take to create, communicate, and deliver value to
a target market. After determining the target market
and the specific consumer category, the company’s
goal is now to satisfy their needs. The marketing mix
elements help organize the ways to do so. This
method is widely used by marketing professionals in
their work.
Marketing Mix
A combination of the
four Ps (Product, Price,
Promotion, and Place)
that can be tailored
according to the demand
of a specific target
market to satisfy the
needs of consumers.
Product:
Description of your product, the
aesthetic, the features, the size,
material etc.
Price:
Is it a high quality product that can be sold
at a premium (above average) price, or is it
a low cost product?
Promotion:
What type of communication
channels are you going to use to
market your product? What media
are you going to use, how often?
Place:
What channels of distribution are you going
to use? How are you going to make your
product accessible for consumers?
22
MARKETING STRATEGY
POSITIONING
11
Product positioning is the relevant value that
perspective consumers give to one project compared
to other projects based on its features and prices.
Product positioning is used by companies to position
their brand, product or service and is a very important
step when launching a new project. The two axes
(price and quality in the example) can be any relevant
characteristic that relates to your brand/product.
Mapping helps to understand how consumers
evaluate the different brands/products in the market.
Product Positioning
The place a certain
product takes in a twodimensional map of a
marketplace created in
consumer’s mind relative
to competitive products
based on certain
characteristics important
to target consumers.
Perceptual mapping is a means to display or graph in two dimensions the location of
products or brands in the minds of consumers. It enables the manager to see how
consumers perceive competing products or brands relative to its own and then take
marketing actions.
Reading The Graph:
This perceptual map
shows four different
brands present in a
marketplace. We can see
that Brand A is seen by
consumers as high
quality and high price,
while Brand B is also
priced higher than
average, but has a lower
quality than Brand A.
23
DEFINING A FINANCIAL PLAN
FINANCIAL PROJECTIONS
12
A budget plan is a financial forecast created within a
business plan. It aims at assessing how much the
company is going to need to spend and how much it is
expected to receive in income.
There are three main financial statements:
• balance sheet
• income statement
• cash flow statement
A balance sheet is made up of three main
components:
1. Assets are intangible or tangible resources owned
by the company that can produce economic value. For
example: buildings, inventory, trademarks etc.
2. Liabilities are any obligations that a company has
resulting from past transactions and need to be ‘paid
back’ through asset transfers. For example: any type of
borrowing from banks or other entities.
3. Ownership Equity are the assets left after all
liabilities are paid.
The Formula corresponding to the Balance Sheet is
then:
Assets=Liabilities + Equity
The balance sheet is often compared to a snapshot of
the company’s financials at one precise point in time.
It is called a “balance sheet” because the two sides:
assets versus liabilities and equity, should always
balance out. The balance sheet is usually presented as
a table with Assets on one side, and Liabilities and
Equity on the other. Once the balance sheet complete:
the Assets should ALWAYS equal the Liabilities and
Equity, thus balancing each other.
Financial Statement
Written reports that
outline the financial
activities of a business or
an individual to provide
financial information;
balance sheet, income
statement, and cash flow
statement are all present
in a financial statement.
Budget Planning
A process by which a
company evaluates its
past earnings and
expenses and plans its
monetary intakes and
outtakes for the future
accordingly.
Balance Sheet
A summary of financial
balances that show what
the business is worth at
a certain point in time; it
usually follows the
formula Assets =
Liabilities + Shareholders'
Equity
24
Defining a Financial Plan
12 Financial Projections
An income statement (also known as revenue
statement or profit & loss statement) shows a
company's revenues and expenses at a particular point
in time and points out the net income of the company.
Net Income = Gross Revenues – Total Expenses
Revenue is money supply that goes to the company—
cash inflow—as a result of its operations.
Expenses are money supply that comes out of the
company—cash outflows—from draining its assets or
paying current liabilities as a result of its operations.
A cash flow statement shows how the changes in the
balance sheet and revenue and income affects the
company’s cash and cash equivalents. The cash
movements are studied within the operating,
investing, and financing activities of the company.
Cash and cash equivalents are the most liquid assets.
In other words, those are the assets that can easily
and rapidly be transformed into cash such as treasury
bills, short-term government bonds and so on.
Operating activities include all activities related to the
production, sales, and delivery of a product, and the
collected payments from consumers.
Investing activities are all activities related to the
purchase or sell of capital assets. For example buying
or selling a new building, gains or losses from
investments in the financial markets, loans made to
suppliers or received by customers, payments related
to mergers and acquisitions, proceeds from issuing
short or long-term debt.
Financing activities is any inflow of cash from investors
(banks or shareholders), as well as the outflow of cash,
such as dividends paid to shareholders or repayment
of debt.
Income Statement
Shows a company’s
revenues minus its costs
and expenses over a
given period of time
(year, quarter, month)
and concludes its net
income or net loss.
Cash Flow Statement
A statement that
provides an overview of
the company’s cash
inflows and outflows
during a certain period
of time and evaluates
the amount, timing, and
predictability of these
financial changes for
better budget and
business planning.
25
Sources: http://www.principlesofaccounting.com/chapter1/chapter1.html
Defining a Financial Plan
Note: The numbers in parenthesis are always negative, need to be subtracted.
26
Defining a Financial Plan
12 Financial Projections
Basic Business Income Statement
Main Dimensions
Typical Breakdowns
Revenue
Price * Quantity Sold
Customer paid price = Price + GST/HST
The goods and services tax (GST) is a tax
that applies on most supplies of goods and services
made in Canada. The GST also applies to supplies of
intangible property such as trademarks, rights to use a
patent, digitized products downloaded from the Internet
and paid for individually, and options to purchase
property. The participating provinces harmonized their
provincial sales tax with the GST to create the
harmonized sales tax (HST). Generally, the HST applies to
the same base of goods and services as the GST.
Cost of Goods Sold
-
Gross Profit
Revenue – COGS
Business Expenses
As a rule, you can deduct any reasonable
current expense you paid or will have to pay to earn
business income. The expenses you can deduct include
any GST/HST you incur on these expenses less the
amount of any input tax credit claimed. Since
you cannot deduct personal expenses, deduct only the
business part of expenses from business income. In
addition, you cannot claim expenses you incur to
buy capital property.
Operating Profit
-
Finance Expenses
(Interest Expenses)
Interest from loans.
27
Defining a Financial Plan
12 Financial Projections
Basic Business Income Statement
Main Dimensions
Typical Breakdowns
Other Gains/Losses
Gains in short term investments. (Trading securities)
Net Income Before
Tax
-
Income Tax
A tax paid to the government. The Canadian income tax
returns you need to report your business income
depends on the form of business ownership you've
chosen.
If your business is a sole proprietorship or partnership,
you report your business income on your T1 Canadian
income tax return by completing Form T2125, which
replaces the old T2124 (Statement of Business
Activities) and Form T2032 (Statement of Professional
Activities). This form is included in the T1 income tax
form package. Note that if you have more than one
business, you will have to fill out a separate Form T2125
for each business.
If your business is incorporated, you will report your
business income on a T2 Canadian income tax return
(the corporate income tax return) and complete and file
a separate personal income tax return (T1). See
my Corporate Tax Guide Canada for more information on
filing corporate income tax.
Net Income
A company's total earning or profit.
Sources:
http://www.cra-arc.gc.ca/bsnsss/menu-eng.html
http://sbinfocanada.about.com/cs/taxinfo/f/reportincome.htm
28
Finalize the business plan
Put Everything Together
CONGRATULATIONS!
YOU HAVE COMPLETED YOUR BUSINESS PLAN!
Now, all that is left for you to do is review your business plan
and make sure all the parts correspond to each other----each
part includes all the necessary elements defined previously.
Make sure you carefully review your executive summary. In
case you made any changes or had new ideas along the way,
edit it to avoid any inconsistencies.
YouthStart congratulates you on completing your first business
plan and on acquiring the necessary knowledge needed to
launch your own business. We hope this information was
useful and will help you in the future. We wish you all the best
in your professional development and hope you succeed in the
workplace.
Further, we provide you with information on how to create a
green business, how to request funding and apply for a bank
loan, as well as how to go through necessary legal procedures
when creating a business. We recommend reading these units
of the booklet in order to broaden your knowledge of
launching a business. A lot of this information will prove to be
useful as you go further in life.
29
HOW TO BECOME A
GREEN
BUSINESS
30
How To Become A
Green Business
Green Business
A green business is a business functioning in a capacity
An organization that
where no negative impact is made on the local or
works to reduce to the
global environment, the community, and the economy.
minimum the negative
A green business will also engage in a forward-thinking
impacts on the global or
policies for environmental concerns and policies
local environment,
affecting human rights. It does so through such
community, society, and
methods as reducing greenhouse gas emissions,
economy.
reducing waste and reducing the use of harmful
chemicals. It also considers the environmental impact
made by its suppliers, trades and employees.
Key Points Of Conducting Green Business:
• Energy Conservation: There will be energy efficient heating and cooling systems, lowenergy lighting, and policies in place for purchasing energy efficient electronics and
appliances and using them with the lowest possible energy.
• Solid Waste Reduction And Recycling: This could mean reducing packaging waste or
ordering in bulk. It will also mean an office with policies to reduce and handle waste
properly. And comprehensive recycling programs will be put in place.
• Water Conservation.
• Pollution Prevention: Work by practicing eco-friendly landscaping methods, using green
janitorial supplies, and perhaps even purchasing carbon offsets to mitigate any
greenhouse gas pollution they create.
Two Examples Of Green Business:
I. Old-Fashioned Milk Paint Company wanted to create its own Colonial-style furniture
made with old-fashioned techniques by turning to milk paint. Devising a formula that
consists primarily of lime, milk, clay, and earth pigments–all natural, readily-available
ingredients–the company provides a product that is environmentally friendly.
II. Recycline is a company that recognized that millions of toothbrushes are thrown away
in American homes every year and decided to do something about the problem. It
produces eco-friendly products, including the Preserve Toothbrush. Made with a
handle constructed of 100 percent recycled plastic, this toothbrush is not only
practical, it is green. All the company’s products can be recycled with #5 plastics!
That’s a true expression of the triple bottom line in action.
Sources:
http://www.businessdictionary.com/definition/green-business.html
http://www.edmonton.ca/environmental/documents/Eco_challenge_definiti
on_of_green_business.pdf
http://www.greenmarketing.tv/2010/03/27/what-is-a-green-business/
31
HOW TO APPLY FOR A
BANK
LOAN
32
Bank Loan
Types of Loans
Main Banks In Canada:
The Big Five Banks:
Royal Bank of Canada, Toronto-Dominion Bank, Bank
of Nova Scotia, Bank of Montreal, Canadian Imperial
Bank of Commerce
Other Banks:
National Bank of Canada, HSBC Bank Canada
Bank Loan
The distribution
of money from a bank to
another party under a
signed agreement with a
number of outlined
commitments, including
the repayment of the
money with a possible
interest rate.
Different Types Of Loans:
1. Personal Loans:
This is most useful loan for small business. These loans
are offered by most banks, and the proceeds may be
used for virtually any expense (from buying a new stereo system to paying off a common
bill). Typically, personal loans are unsecured, and range anywhere from a few hundred to a
few thousand dollars. As a general rule, lenders will typically require some form of income
verification, and/or proof of other assets worth at least as much as the individual is
borrowing. The application for this type of loan is typically only one or two pages in length.
Approvals (or denials) are generally granted within a few days.
The downside is that the interest rates on these loans can be quite high. According to the
Federal Reserve, they range from about 10 to 12 percent. The other negative is that these
loans sometimes must be repaid within two years, making it impractical for individuals
looking to finance large projects.
In short, personal loans (in spite of their high interest rates) are probably the best way to
go for individuals looking to borrow relatively small amounts of money, and who are able to
repay the loan within a couple of years.
2. Credit Cards: (Consumer Line-of-credit Loans)
When consumers use credit cards, they are essentially taking out a loan with the
understanding that it will be repaid at some later date. Credit cards are a particularly
attractive source of funds for individuals (and companies) because they are accepted by
many merchants as a form of payment. In addition, to obtain a card (and, by extension,
$5,000 or $10,000 worth of credit), all that is required is a one-page application. The credit
review process is also rather quick. Written applications are typically approved (or denied)
within a week or two. Also in terms of their use, credit cards are extremely flexible. The
money can be used for virtually anything these days from paying college tuition to buying a
drink at the local watering hole. There are definitely pitfalls, however. The interest rates
that most credit-card companies charge range as high as 20% per year. In addition, a
consumer is more likely to rack up debt using a credit card (as opposed to other loans)
because they are widely accepted as currency and because it's psychologically easier to
hand someone a credit card than to fork over the same amount of cash.
33
Bank Loan
Types of Loans
3. Home-Equity Loans:
Homeowners may borrow against the equity they have built up in their house using
a home-equity loan. In other words, the homeowner is taking a loan out against the value
of his or her home. A good method of determining the amount of home equity available
for a loan would be to take the difference between the home's market value and the
amount still owing on the mortgage. The loan proceeds may be used for any number of
reasons, but are typically used to build home additions, or for debt consolidation. The
interest rates on home-equity loans are very reasonable as well. In addition, the terms of
these loans typically range from 15 to 20 years, making them particularly attractive for
those looking to borrow large amounts of money. But, perhaps the most attractive feature
of the home-equity loan is that the interest is usually tax deductible.
The downside to these loans is that consumers can easily get in over their heads by
mortgaging their homes to the hilt. Furthermore, home-equity loans are particularly
dangerous in situations where the family's ability to repay the loan might be hindered by
that person's death or disability. Even a 1% increase in interest rates could mean the
difference between losing and keeping your home if you rely too heavily on this style of
loan. In situations like these, life/disability insurance is frequently used to help protect
against the possibility of default.
4. Home-equity Line Of Credit:
This line of credit acts as a loan and is similar to home-equity loans in that the consumer is
borrowing against his or her home's equity. However, unlike traditional home-equity loans,
these lines of credit are revolving, meaning that the consumer may borrow a lump sum,
repay a portion of the loan, and then borrow again. It is similar to a credit card that has a
credit limit based on your home's equity. These loans may be tax deductible and are
typically repayable over a period of 10 to 20 years, making them attractive for larger
projects. Because specific amounts may be borrowed at different points in time, the
interest rate charged is typically pegged to some underlying index such as the "prime rate".
This is both good and bad in the sense that at some times, the interest rates being charged
may be quite low. However, during period of rising rates, the interest charges on
outstanding balances can be quite high.
5. Cash Advances:
Cash advances are typically offered by credit-card companies as short-term loans. Other
entities, such as tax-preparation organizations, may offer advances against an expected IRS
tax refund or against future income earned by the consumer. While cash advances may be
easy to obtain, there are many downsides to this type of loan. For example, they are not
typically tax deductible, loan amounts are typically in the hundreds of dollars, making them
impractical for many purchases, particularly large ones, and the effective interest rate
charges and related fees can be very high.
34
Bank Loan
Types of Loans
6. Small Business Loans:
The Small Business Administration (SBA) or your local bank typically extend small business
loans to would-be entrepreneurs, but only after they have submitted (and received
approval for) a formal business plan. The SBA and other financial institutions typically
require that the individual personally guarantee the loan, which means that they will
probably have to put up personal assets as collateral in case the business fails. Loan
amounts can range from a few thousand to a few million dollars, depending on the
venture.
While the term of the loan may vary from institution to institution, typically, businesses will
have between five and 25 years to repay the loans. The amount of interest incurred from
the loan depends on the lending institution in which the loan is made. Keep in mind that
borrowers can negotiate with the lending institution with regard to the level of interest
charged. However, there are some loans on the market that offer a variable rate.
Small business loans are the way to go for anyone looking to fund a new or existing
business. However, be forewarned: getting a business plan approved by the lending
institution may be difficult. In addition, many banks are unwilling to finance "cash
businesses" because their books (i.e.. tax records) often do not accurately reflect the
health of the underlying business.
Sources:
http://www.investopedia.com/articles/pf/07/loan_types.asp
35
Bank Loan
Apply for Loans
Necessary Materials To Apply For Loans:
Credit history: Credit is one of the key factors that
affect loan approvals, and getting any type
of financing with a bank generally requires establishing
a credit history prior to submitting an application, as
well as maintaining a good credit score.
Financial history: Lenders will evaluate your income
statement, primarily cash flows, to see how much you
earn in a month when reviewing your loan application.
Collateral: Lenders often require a piece of personal
property to secure a loan. This protects their
investment if you default on the loan payments.
Lenders base collateral on the requested dollar
amount.
Credit Rating
An evaluation of the
creditworthiness of an
individual.
Credit Report
A report that shows an
individual’s credit
ratings and credit
history.
How Loan Rates Are Determined:
Lenders establish their rates based on several factors. These include the prime rate (which
is influenced by the Bank of Canada), inflation levels, the type of lending product you want,
the amount you wish to borrow, and the term over which you plan to pay the funds back.
Generally, rates are lower when loans are secured with some form of collateral, as the
lender has less risk to assume. Your credit rating will also be considered. A higher credit
score indicates that you are a lower credit risk, and will likely entitle you to a better rate.
Because the features of a loan are as varied as the reasons for borrowing, it is important
that you get the right loan for the right purpose.
Credit Rating: A good credit rating is precious—it's the most important factor in
determining whether you qualify for a loan, mortgage, or line of credit. Financial experts
recommend you know the status of your credit rating and ensure your credit report is free
of inaccuracies.
Credit Report: A report containing detailed information on your credit history, including
identifying information, credit accounts and loans, bankruptcies, late payments, and recent
inquiries. Prospective lenders can obtain it (with your permission) to determine your
creditworthiness.
Sources:
http://www.ehow.com/info_7918213_do-need-apply-loan.html
https://www.cibc.com/ca/apply/llc/llc-apply.html?prodId=llc-plc
https://www.envisionfinancial.ca/Personal/Borrow/Loans/LoanBasics/
36
Bank Loan
Apply for Loans
How To Calculate Loan Balance And Payments:
The loan payment formula is used to calculate the
payments on a loan. The PV, or present value, portion
of the loan payment formula uses the original loan
amount. The original loan amount is essentially the
present value of the future payments on the loan,
much like the present value of an annuity. It is
important to keep the rate per period and number of
periods consistent with one another in the formula. If
the loan payments are made monthly, then the rate
per period needs to be adjusted to the monthly rate
and the number of periods would be the number of
months on the loan. If payments are quarterly, the
terms of the loan payment formula would be adjusted
accordingly.
Loan
A temporary transfer of
a property (money) from
a lender to a borrower
which needs to be repaid
according to certain
terms and is usually
returned in a series of
periodic payments.
Loan Payments
Equal amounts of money
that are to be paid each
period by the borrower
to the lender.
Loan Balance
Amount of money
needed to completely
pay off the debt and
meet the outlined terms
of the loan agreement.
Sources:
http://www.financeformulas.net/Loan_Payment_Formula.html
37
Bank Loan
Alternative Financing Options
How To Get A Loan With Bad Credit:
I. Use a home equity line of credit
II. Apply to credit unions
III. Get a Pear to Pear loan - It’s an online platform that allows people to borrow directly
from an individual instead of from an institution.
IV. Take a loan from family or friends
V. Appeal to co-signer
Alternative Financing Options:
Credit Unions: Credit unions are similar to banks but are owned by their members, who
typically have something in common—like working in the same industry or living in the
same geographic area. Credit unions are non-profit organizations that pass along earnings
to members in the form of lower fees and higher customer service.
Asset-based Lending: These loans, often in the form of lines of credit, are based on a
percentage of the value of a company’s assets, including inventory and accounts
receivable.
Hedge Funds And Private-equity Funds: A hedge fund is a pooled investment
vehicle administered by a professional management firm, and often structured as a limited
partnership, limited liability company, or similar vehicle. A private equity fund is a collective
investment scheme used for making investments in various equity (and to a lesser extent
debt) securities according to one of the investment strategies associated with private
equity.
Venture Capital: Venture capital is financial capital provided to early-stage, high-potential,
high risk, growth start-up companies. The venture capital fund makes money by
owning equity in the companies it invests in.
Sources:
http://www.quickanddirtytips.com/money-finance/credit/5-ways-to-get-aloan-with-bad-credit?page=1
http://www.businessweek.com/smallbiz/tips/archives/2011/08/five_alternati
ve_financing_options.html
38
CANADA’S
LEGAL
PROCEDURE
39
Legal Procedure
Types of Companies
Types Of Companies:
Legally, there exist different types of companies on the market.
Two types of companies may be incorporated under the Companies Act, namely non-profit
companies and profit companies.
Profit companies may be incorporated under the following types:
I. Private Companies
II. Public Companies
III. Personal Liability Companies
IV. State Owned Companies
Non-Profit Companies (NPC):
To be considered a not-for-profit, a company must be incorporated for public benefit or
other object relating to one or more cultural or social activities, or communal or group
interests, as well as it’s income and property must not be distributable to its incorporators,
members, directors, officers or persons related to any of them.
Public Companies (Ltd):
The definition of a public company is largely unchanged. The only difference is that a public
company under the new Act only requires one member for incorporation compared to the
7 members under the current Companies Act.
Personal Liability Companies (Inc):
The directors and past directors (where applicable) of such companies are jointly and
severally liable together with the company for any debts and liabilities arising during their
periods of office.
State-Owned Companies (SOC Ltd):
A State owned company is either a company defined as a “state-owned enterprise” in the
Public Finance Management Act 1 of 1999 or a company owned by a municipality. The
majority of the provisions of a public company will apply to state-owned companies as
well.
Sources:
http://www.cipc.co.za/Companies.aspx
40
Legal Procedure
Types of Ownerships
Types Of Ownerships:
Private Company (Pty) Ltd:
A private company is a separate legal entity distinct from its shareholders. A private
company is liable for its debts, and creditors cannot sue the shareholders for the payment
of these debts. A private company can have up to 50 shareholders. Other companies and
closed corporations (CCs) can hold shares in a company, which is an advantage over a CC,
which cannot have a company as a member.
There is a slight advantage to writing (Pty) Ltd after your company's name because it will
be perceived to have a more stable and established image. But there are many
disadvantages, including the costs to register, which can go up to R3 000 or R4 000 if you
do it through a lawyer or an accountant. The structure of a company is more complex than
a CC because it must have separate ownership and management, the shareholders own it
and the board of directors manages it. The decision making process is complex because
there are prescribed general meetings, notice periods and formalities for the passing of
resolutions. The law requires a company to audit its books once a year. This can run into
thousands of dollars every year, depending on the size of the company. The law strictly
governs the conduct and duties of company directors and officers. For example, not
keeping minutes of board meetings or not holding an annual general meeting is illegal. If
you are going to register a company, make sure that you are aware of all the legal
requirements that must be complied with.
Sole Proprietor:
A sole proprietorship is a business owned by one person. This type of business is not a
separate legal entity as the owner enters into all transactions in his/her personal capacity.
There are no agreements or articles stipulating how the business must be managed. The
sole proprietor is the owner of all the business' assets and is responsible or fully liable for
all the business' debts. The sole proprietorship terminates when the owner stops carrying
on business. The advantages of a sole proprietorship are:
• No legal formalities are required to establish a sole proprietorship
• The overhead costs and management expenses are lower than for other entities
• The owner has the freedom to adjust the business as they deem fit
• The disadvantages of a sole proprietorship are:
• The owner's personal assets are at stake, if the business fails
• The business closes when the owner dies or retires
• The business usually remains small due to the limited resources
• It's normally difficult for owners to raise finance for their businesses
41
Legal Procedure
Types of Ownerships
Partnership:
A partnership is a particular type of business formed by people who intend making and
sharing profits. It can be defined as a relationship based on an agreement between two or
more persons who undertake to contribute something with the object of making a profit
and sharing it between them. A partnership can be formed by natural or legal persons, or
by a combination of natural and legal persons. A partnership must have between two and
20 partners. The partners in accordance with the partnership agreement manage the
partnership. A partnership is not a separate legal person, since the rights, duties and
liabilities of a partnership belong to and bind the partners individually.
Close Corporation:
A Close Corporation (CC) is a company, similar to a private company. It is a legal entity with
its own legal personality and succession and must register as a taxpayer in its own right. A
CC has no share capital and no shareholders.
The owners are the members of the CC and their initial interest in dollars (which often
reflect their ownership percentages) are called membership contributions. For income tax
purposes a CC is regarded to be a company.
Note that following the new Companies Act that came into force on 1 April 2011, no new
CCs can be incorporated. All existing, registered CCs will continue to exist. Current CCs can
choose to either convert to a company or continue to exist until deregistration or
dissolution.
Franchise:
The franchisee buys the rights from the franchisor to open a "branch" of the business in a
certain area. He agrees to operate it under certain rules and to maintain the franchisor's
standards and way of doing business. The franchisee usually pays a regular fee to the
franchisor for the right to trade under the franchise name. The franchisor, on the other
hand, promises the franchisee that the business he is buying is tried and tested and has
proven to be successful. The franchisor agrees to train the franchisee to run the branch,
and supports him. Often the franchisor agrees to do collective advertising and bulk buying
of stock for all the franchisees in the group.
Sources:
http://www.standardbank.co.za/portal/site/standardbank/menuitem.de435a
a54d374eb6fcb695665c9006a0/?vgnextoid=4cbd08f82045b210VgnVCM1000
00c509600aRCRD
42
Legal Procedure
Register a Business
How To Make Your Business Legal:
I. Choose name and get it approved
Make sure that you are legally permitted to use the name and that it is not
being used by an existing business.
II. Choose a form of business ownership:
• the sole proprietorship
• the partnership
• the corporation
• and the cooperative
III. Research federal and provincial licensing, local safety and health regulations,
environmental protection rules, liability, employee deductions and labour standards.
IV. Register your business - Provincial and Territorial business registration
The basic procedure to register a business name for a sole proprietorship
or partnership is to conduct a business name search, fill out the
appropriate business registration form, and pay your fee. The Business
Registration section of this website has links to all the different provincial
registries to speed up this process for you. You file a Declaration of
Registration form (along with the applicable fee) at an office of the
Registraire des entreprises (REQ) in Montréal or Québec City.
V. Getting Permits and License
You may also require specific permits and licences from the federal,
provincial or municipal governments, depending on your location, industry
sector, and specific activities that you plan to conduct. Use our permits and
licences search to find out which permits and licences might apply to your
business.
Sources:
http://sbinfocanada.about.com/od/formsofbusinessownership/a/formbusine
sshub.htm
http://sbinfocanada.about.com/od/bizregistration/a/businessreghub.htm
http://www.youth.gc.ca/eng/topics/jobs/business.shtml
http://sbinfocanada.about.com/od/bizregistration/a/regquebec.htm
http://sbinfocanada.about.com/od/formsofbusinessownership/g/NUANSBusiness-Name-Searches.htm
43
Legal Procedure
Register a Business
How To Make Your Business Legal:
Québec
Cooperatives Act (In French Only)
Learn about the Cooperatives Act and regulations that govern non-financial cooperatives.
Creating a non-profit corporation or organization
Learn the major steps for establishing a non-profit corporation or organization in Quebec.
Enterprise registrar
If you have a business operating in Quebec, you must register with the enterprise register
and declare your organization's legal form.
NEQ — Quebec Enterprise Number
Simplify and speed up your dealings with the various Quebec government departments
and organizations by registering with the Registraire des entreprises [Quebec enterprise
registrar]. This is you Quebec Enterprise Number.
Registration of a charitable organization
Find all the information you need to register a charity in Quebec.
Revenu Québec – Business Portal
Is your company based in Quebec? This business portal provides information on income
tax, consumption taxes, and more, to help you meet your fiscal obligations.
Setting up a cooperative (In French Only)
Do you want to create or start a cooperative? If so, this site provides useful information
about starting a cooperative.
Sources:
http://canadabusiness.ca/eng/page/2730/
44
GLOSSARY
45