adm3313b financing your venture

8/9/2019 ADM3313B Financing Your Venture

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ADM 3313FinancingYour VentureStephen Daze


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Financing: Debt, Equity and Boottrapping

1! Debt: cah no" #or repay$ent %"ith interet&'ater!

(! Equity: cah #or a piece o# the buine!

3! Boottrapping: piecing it together on youro"n!

http:))"""!youtube!co$)"atch*+-./02#DyE
http://www.youtube.com/watch?v=U470xXKfDyEhttp://www.youtube.com/watch?v=U470xXKfDyEhttp://www.youtube.com/watch?v=U470xXKfDyEhttp://www.youtube.com/watch?v=U470xXKfDyE


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1! Debt Debt: cah no" #or repay$ent %"ith

interet& 'ater 4oan 4ine o# credit Mortgage 5redit card Etc!


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5haracteritic Money 'ent to you "ith epectation o# it

being returned "ith interet6er$ are deter$ined in ad+ance Di7erent ban8 ha+e di7erent product

9 but they are a'' pretty i$i'ar


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Ban8 5onider the Fo''o"ing1! epay$ent Abi'ity

;hat e+idence eit to con+ince $e erona' ?nancia' ituation!

(! Manage$ent;hat e+idence eit that indicate that thi peron can $anagehi)her a7air "e'' enough to a''o" the opportunity #or paybac8*5redit hitory*

3! >erona'


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5anada S$a'' Buine Financing:

http:))"""!canadabuine!ca)eng)

Buine De+e'op$ent Ban8:http:))"""!bdc!ca)en)>age)ho$e!ap

Ban8: http:))"""!roya'ban8!ca)buinde!ht$'

http:))"""!tdcanadatrut!co$)productCer+ice)ban8ing)indeCban8ing!p

http:))"""!cibc!co$)ca)$a''Cbuine!ht$'

Sources of financing
http://www.canadabusiness.ca/eng/http://www.bdc.ca/en/Pages/home.aspxhttp://www.royalbank.ca/busindex.htmlhttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttps://www.cibc.com/ca/small-business.htmlhttp://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/vwGeneratedInterE/Homehttp://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/vwGeneratedInterE/Homehttps://www.cibc.com/ca/small-business.htmlhttps://www.cibc.com/ca/small-business.htmlhttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttp://www.tdcanadatrust.com/products-services/banking/index-banking.jsphttp://www.royalbank.ca/busindex.htmlhttp://www.royalbank.ca/busindex.htmlhttp://www.bdc.ca/en/Pages/home.aspxhttp://www.bdc.ca/en/Pages/home.aspxhttp://www.bdc.ca/en/Pages/home.aspxhttp://www.canadabusiness.ca/eng/http://www.canadabusiness.ca/eng/http://www.canadabusiness.ca/eng/


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Su$$er 5o$pany:

http:))"""!ontariocanada!co$)ontcan)1$edt)$a''biz)en)byeu$$ercoen!p 5anadian Youth Buine Foundation

http:))"""!cyb#!ca)
http://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.cybf.ca/http://www.cybf.ca/http://www.cybf.ca/http://www.cybf.ca/http://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsphttp://www.ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsp


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(! Equity Equity: cah #or a piece o# the buine


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Venture 5apita' Fir$ peci?ca''y deigned to poo' 'arge u$ o#

$oney and in+et in ri8y aet c'a

Ha+e 4i$ited >artner in their #und to report to Ha+e to in+et the $oney or return it Speci?c buine $ode' peci?c type o# dea' Ha+e a peci?c criteria re'ated to:


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Venture 5apita' ey roce

Due Di'igence Va'uation

6er$ Sheet

Eit

Entrepreneur 5onideration "nerhip I 4ong ter$ o"nerhip %eit& 5ontro'


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Ange'


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Ange'


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Deciion 5riteria #or ercei+ed in+etor ?nancia're"ard R .

Kiche $ar8et 1N

6rac8 record o# entrepreneur 10 11* Angel Investing Osnabrugge & Robinson


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6he Funding Food 5hain

14

SeedCapital

Financing

$

Start UpFinancing

FirstStage

SecondStage

Mezzanine BridgeFinancing

Types

SourcesPersonal

o!e MoneyAngels

Angels Angels VentureCapital

VentureCapital

VentureCapitalBanks

"P#

FinancialMarkets


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More


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3! Boottrappingo >iecing it together on your o"n@

o A $ean o# ?nancing a co$panythrough the creati+e acquiition andue o# reource "ithout raiing cah#ro$ independent in+etor


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Q: ;hat "ere o$e trategie you uedduring the 5ah F'o" eercie that he'ped

you preer+e your cahG and ban8account ba'ance*


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Diad+antage May not generate enough cah to gro"

at the deired rate 4i$it potentia' a'e, $ar8et hare and

o+era'' co$petiti+e poition >ro+ide inuUcient upport #or high

gro"th and capita' inteni+e buinee


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Strategie #or Succe


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4e+erage Po+ern$ent>rogra$

%ro+incia' >rogra$ 4oo8 #or:

Fed De+ ntario Minitry o# Econo$ic De+e'op$ent and

E$p'oy$ent


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Pet operationa' quic8'y Pet up and running rather than "aiting

#or the ho$e run 4oo8 #or cah generating product or

er+ice, i!e! conu'ting by day 6a8e on opportunitie that $ight not be

part o# the trategic p'anG

A buine that i $a8ing $oney bui'dcredibi'ity


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Po ?nd a cuto$er each out to cuto$er #ro$ day one

Pet out and e'' be#ore the product iready

-e perona' paion and a'e$anhipto ubtitute #or big $ar8eting budget

7er product "ith tangib'ead+antage o+er co$petitor


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eep gro"th in chec8 Epand at a rate that you can contro'

Manage "ithin your ?nancia' $ean

Faci'itate de+e'op$ent o#$anage$ent 8i'' under 'e preure

FirtC$o+er ad+antage are o#tenhortC'i+ed

eep your ?nger on the pu'e o#per#or$ance


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Focu on cah 5ah i 8ing 9 not pro?t, $ar8et hare or

other $etric

5reate hea'thy $argin #ro$ day one Say noG to 'o $a8ing trategie to

bui'd $ar8et hare or a cuto$er bae

-ndertand cah To" 9 cah poition,

$onth'y burn, ti$e'ine


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For$ a''iance #or Mar8et penetration

Sa'e)$ar8eting channe'

>roduct credibi'ity

Woint bidding on proect

Acce'erate ti$e to $ar8et

Peographic epanion Buine eperience

Enhance co$pany tatu


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;or8 "ith 5uto$er A8 cuto$er to prepay #ee or pro+ide

ad+ance

Pet cuto$er to #und cuto$ization "or8%and 'et you o"n the &

De'i+er in+oice "ith the good, payattention to co''ection

DonOt do buine "ith dead beat and

drea$er Mar8et "ith no $oney 9 "ebite, biz card,

tradeho", co'd ca''


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;or8 "ith Supp'ier Supp'ier:

A8 #or credit Dea' "ith er+ice pro+ider #or 'o"

rate Ma8e ue o# be'o" $ar8et rent pace Barter your product or er+ice DonOt abue the$


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Boottrapping $ethod ha+e +ariou'e+e' o# +a'ue potentia' and app'ication

Your tea$: Forgo, reduce or de'ay co$penation

%"eat equity& E$p'oy re'ati+e and #riend at be'o"

$ar8et a'arie 4oo8 #or +o'unteer and coCop tudent >ay "ith toc8 or toc8 option ;or8 #ro$ ho$e


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You: -e perona' a+ing, credit card and

'oan Forgo, reduce or de'ay co$penation

%"eat equity& ;or8 #ro$ ho$e

De+e'op product at night and "ee8end"hi'e "or8ing e'e"here

;ear 'ot o# hat


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ther: Buy ued equip$ent %auction& Borro" equip$ent #ro$ other

buinee Share buine pre$ie "ith other no" "here to a+e and "hen to

pend E'i$inate unneceary ependiture


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Financing ption1! Debt: cah no" #or repay$ent %"ithinteret& 'ater!

(! Equity: cah #or a piece o# the buine!

3! Boottrapping: piecing it together onyour o"n!


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adm3313b financing your venture

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