"let's build businesses" presentation for bmbt program

Lets Build Businesses

Building a Better Future for Business

Presentation Overview

Overview of what NEDC is, their programs and services

What NEDC looks for

A couple funding examples

Where to start

Assistance available

Examples of businesses and industries that NEDC has assisted.


What is NEDC?

Helps start, acquire or expand a business;

A Nuu-chah-nulth owned corporation;

Governed by a Board of Directors representing the 14 First Nations and the NTC.


Why Build Businesses?

Create employment Fulfill needs and

wants Keep people in the

community Keep money in the

community More convenience


NEDC can help you…

Develop business ideas;

Offer guidance in business planning;

Put together a loan application;

Access other loans;

Match up with a mentor;

Access training resource.

NEDC assists as much as possible.


Eligibility

Aboriginal: Status/Non-status First Nation, Inuit, Métis individuals – with proof

Sole-proprietors, partnerships, companies, or other legal entities on or off reserve

Reside and operate or propose to operate the business within the NEDC delivery area


Common Funds Available

National Funding: Aboriginal Business Canada – Aboriginal

Regional Funding Business Equity Program - Aboriginal First Citizens Fund – Aboriginal NRT Equity Match – First Nations BDC Loan

Nuu-chah-nulth Specific NTC Forgivable Loan Program – Nuu-chah-nulth only NTC Youth Interest Buy-down – Nuu-chah-nulth only NTC Contribution Program – Nuu-chah-nulth only

Other special and general loan funds


Grant vs. Contribution

NOT THE SAME THING! Contributions have conditions attached.

Prove that all conditions of the contribution are met before getting funds,

Funds are only allowed to be spent on approved expenditures,

Business is monitored for up to FIVE years, If conditions not met, then the contribution may have to be

repaid.

Usually, a grant will have minimal to no reporting requirements


Aboriginal Business Canada

Must be Canadian Aboriginal

Contributions up to $99,999 ($250,000 Tribes)

Generally 30-40% start-up/expansion/acquisition costs

75% planning/support costs

Referred to as: ABED (Aboriginal Business

and Entrepreneurship Development)

Historically ABDP, ABC, BEF (Business Equity Fund), BEP

Business Equity Program

(what we call ABC since 2000)

Based on ABC program delivered to Vancouver Island region

For business start-up, expansion, and acquisitions, must have a loan and cash equity component

Contributions (<$50.000)

be 19 years or older

reside and operate or propose to operate from Vancouver Island


Who is a youthin business?

Aboriginal Business Canada (ABC)

defines a youth as someone 19 to 35 years old inclusive


First Citizen’s Fund

Nuu-chah-nulth region Lifetime maximum loan of

$75,000 1.5% administration fee on

all loans which helps pay for business support

A deferred 40% contribution Pay 15% principal, receive 10%

contribution (4 times) 50%-100% of the equity

must be cash (based on loan size)


NRT Equity Match

Dollar for Dollar Tied to Commercial

Financing through an approved ACC

Up to $5000 Lifetime Limit (Tribes $25,000)

Max. 25% of Project Costs BC First Nations only


BDC

Up to $20,000 Throughout VI Flexible Equity

Requirements


NTC Forgivable Loan Program For Individual NCN Members

**Must be attached to a repayable loan

If not receiving other contributions: 40% of repayable loan to

a maximum of $10,000

If receiving other contributions (such as ABC or BEP): 20% of repayable loan to a

maximum of $5,000


NTC Contribution Program

For Individual NCN Members Contributions to contract:

Business Plans Feasibility Studies Engineering Studies Environmental Assessments Community Economic Studies Business Support

Equity requirement: 10% (no loan req’d)

Maximum contribution: $25,000Must have the capacity to implement

project. (I.E.; If contracting a feasibility , must have the requirements and intent to start the business if the study indicates viability.)


Had Enough Yet??

Don’t worry!You are not expected to be a funding specialist!


No Equity Example$20,000 project

Equity - $0 – wrote own business planInterest - Flexible (FCF would be 12%

fixed)

BDC loan $ 20,000Total $20,000


FCF Metis Example$10,000 project

*deferred contribution of $6800, therefore repay $10,200 of the $17,000 loan plus interest on the entire loan.

Interest on this loan would be 12% fixed.

Owner’s Equity 15% $ 3,000*FCF loan $ 17,000Total $20,000


NCN Expansion or Acquisition

$20,000 Project

*FCF Loan: $4,000 deferred contribution (40% of loan) if paid back as agreed.

Owner’s Equity10%

$ 1,000

NRT Equity Match 1,000

BEP Contribution 30% 6,000Loan – may be FCF* 10,000NTC Contributions 2,000Total $20,000


Nuu-chah-nulth Youth or Startup

$20,000 Project

*FCF Loan: $3,340 contributed to the loan if paid back as agreed.

Owner’s Equity10%

$ 1,000

NRT Equity Match 1,000

BEP Contribution 40% 8,000Loan – may be FCF* 8,350NTC Contributions 1,650Total $20,000


Sample Funding Application Process

Discuss with Officer

Submit Funding Request

Submit Plan

NEDC Analyzes Plan

Decision Made

Contract(s) Signed

Conditions Met

Implement Plan

Submit Claims


What does NEDC look for?

Suitable applicant Eligible for assistance and funds Credit Experience & Understanding

Plan makes sense The business is feasible and viability

Security


Risk Exercise

Your friend asks you to borrow money for their vacation. Four loan & repayment options:A. Do not lend moneyB. Only lend some of the money and repay monthlyC. Lend all and repay monthlyD. Lend all and repay when get back

Discuss Pro’s & Con’s of Options


Considerations

What affect do these situations have on your decision:

Your friend shows you a detailed plan about how they will get the money to repay you

Another friend tells you she lent money to your friend and never received it back.

Your friend will give you a car until the loan is repaid.

Your friend doesn’t have a job or has a really good job

You have more than enough money


Credit is Important in Businesses

How do I keep a clean credit rating? Pay at least the minimum

payment due on all your bills.

Do not borrow more than you need

Do not bounce cheques Contact your creditors if a

problem arises and work out solution


Credit

One free credit report/year Look for “free credit file”

if you want a free copy Or pay $15+ for online

version Report any errors

download form online

Equifax Trans Union Creditwww.equifax.ca www.tuc.ca


Beware of Credit Vultures

Credit is now an INDUSTRY Cards, counselling, repair services,

lawyers, etc. Use services with caution

Fraudulent claims Hidden service charges, high fees,

etc. Lots can be done on your own! Non-profit:

www.creditcounsellingcanada.ca


Steps to Repair Credit

1. Get a credit report2. Review it3. Correct with bureau if

necessary4. Repair credit

Repay the negative reports and ask creditor to note on your report

5. Pay down/off debt Recommend paying off highest

interest rate debt first (pay minimum payment due on all of them regardless!)

6. Take other actionVisit www.moneyproblems.ca for more information

http://www.moneyproblems.ca/


Step 1: Look for a need or problem (opportunity).

Step 2: Do market research.

Step 5: Choose the BEST idea!

Step 6: Research needed money

Step 9: Implement your plan!

Step 3: Think of lots of possible solutions to meet the need or solve the problem

Step 4: Assess, evaluate, do market research.

Step 7: Research needed human resources (people)

Step 8: Develop business plan

Where Do I

Start?


To make it easier:

Base it on what you KNOW Target your market Be flexible Keep good notesIf you start a business:Open a separate business account


Business Opportunities

Most opportunities are personal What skills do you have? What do you like to do? What does your community need? Or

what do other communities need? Match your skills, interests and

knowledge with your communities needs


How do Businesses Fail?

Not enough planning before start up;

Not monitoring financial position;

Not understand the relationship between price, volume, and cost;

Failure to manage cash flow;

Failure to manage growth;

Failure to borrow properly;

Failure to plan for transition.

Most people don’t plan to fail - they fail to plan!


What do I need to start a business?

Idea;

Experience;

Cash equity;

Research into the market.


Do You Have What it Takes?

Passion for your business;

Inner drive to be independent;

Willing to take risks;

Set and achieve goals;

Flexible and adaptable;

Confidence in yourself;

Support


What type of businesses has NEDC assisted?

Businesses in MANY industries: Tourism (adventure, eco, etc.), water taxis,

fishing and aquaculture, accommodation, manufacturing, professional services (lawyers, dentists, etc), hair salons, home based businesses, art, food services (cafes, restaurants, catering, etc.), entertainers, transportation, forestry, convenience and retail stores, spas, landscaping, bookkeeping, communications (radio station, marketing, etc), hydro, ETC!


NEDC Assisted Businesses

Himwitsa Enterprises (House of Himwitsa, Sea Shanty Restaurant and Himwitsa Lodge)

Aa-aa-nuk Lodge, Kwisitis Feast House,

Constuction: Les Sam Construction, Potter Construction, Shae Doiron Painting, PC Siding & Soffits, Alberni Colour Corner

Electricians: Braker Electric Ltd, Mace Electric

Ahtsik Gallery, Native Art Cedar House (Huu-mees ma-as), Kwisitis Gift Shop (Wya)

Tin Wis Resort Ltd.

MicroHydro: Upnit Power - China Creek Microhydro

Pacheena Bay Campground

Tseshaht Market

Water Taxis: John Tom, Cougar Island, Max’s, GI Watertaxi, Eagle Adventures, etc.

Duffin Cove Resort, Seaside Adventures

Consultants: White Raven, Secluded Wellness Centre

House of Win-Chee Aboriginal Fashion

Hair Studios & Spa: Clip 21, EM Salon & Spa

Professionals: Roset Lanyon Chartered Accountants

And many more!


Resources (other than NEDC)

Entrepreneurs Family & Friends Consultants Aboriginal

Business Mentor Program

Aboriginal Best Band or Metis

office Friendship Centre

Universities, colleges, business training centres, adult education centres

Bank business departments

Industry specific associations and publications


Resources (Other than NEDC)

Business Network International

Women’s Business Network

ABSN & firstbusiness.com

Aboriginal Youth Mean Business

Chamber of Commerce

Small Business BC

Wage Subsidy Programs

Employment & Training Programs


Other Funding Sources

Bank – take on debt Line of Credit Credit Card Overdraft

Investors – give up ownership Other

Love money – family, friends Fundraising – incl. Crownsourcing Grants/contributions


Assistance Available & Info Sources

Mentors Other business people Business Counselors NEDC, Community Futures, INEO,

Chamber of Commerce, etc. Internet Family & Friends Find people you trust to talk to!


What should you do now?

Save $$ Credit Survey your ‘target market’ online

surveys, phone interviews and face-to-face discussions & record results

Think about what you would risk Investigate funding alternatives Prepare to work hard Buy local Be curious!


What should leadership do?

Support and encourage local businesses

Make policies and processes to encourage business in various areas

Buy local Separate politics from business Encourage strong work ethics. Ensure training is provided.


NEDC is Here to Assist

Located on Tseshaht land in it’s own office beside the Tseshaht Market

724-3131

1.866.444.6332

7563 Pacific Rim Highway

Port Alberni, BC

V9Y 8Y5

www.nedc.info

[email protected]

"let's build businesses" presentation for bmbt program

Business

business nedc

business grant

business planning

business startup

business ideas

abed aboriginal business

better future

abc program