Starting Your Business
Dare to Dream
A personal reflection on why to hold on to a dream.
Michelle Valberg, an Ottawa-based photographer (Tel: 613-521-3117; e-mail: michelle@valbergimaging.com), self-published Dare to Dream: A Celebration of Canadian Women, a sensational photographic tribute to 100 contemporary Canadian women leaders and role models (some of whom, like author Joanne Thomas Yaccato, you'll find featured elsewhere on this Web site).
Dare to Dream has already achieved best-seller status in Canada (and can be ordered on-line at www.indigo.ca. Michelle, who produced the book on her own after failing to find a publisher ("coffee-table" books are considered an iffy publishing proposition these days), is donating all proceeds from her book's sales to the Diva Foundation, which was set up to advance women's health. (For more information on the Diva Foundation, call 613-564-3482.)
Michelle shares her inspirations and experiences compiling and publishing the book:
"I was standing in line at the bank the other day, at the Royal Bank that is, kind of daydreaming, when this poster caught my eye. It read, 'Dreams can never be too big.' It caused me to reflect on one of my own dreams, a dream I thought, at times, was too big. I know now that, with belief, I made it happen. I believed I would find the financing needed. I believed I would find a publisher. I believed I would find the women for the book. I believed I was a good photographer. Some days, these beliefs were realized, some days, they were not."
I never found financing, or a publisher for that matter, but AGFA and Corel did support Dare to Dream, by providing me with products and services. I found 100 incredible women to photograph and I self-published Dare to Dream, as I did with my first book, called Look Beyond: The Faces & Stories of People with HIV/AIDS. I decided to call this book Dare to Dream at the very early stages. I knew I had to dare to dream to get this project off the ground, I thought it was such a fitting title.
There were many times this project almost came to a halt. I remember a day I was so frustrated, I didn't know how I could continue.I happened to be with Karen Bell that day, my assistant and project manager extraordinaire. She let me vent and when I was finished, she quietly looked over at me and said: "I don't know how you are going to make this book happen. I just know you will."
So we didn't have money or a publisher. We decided to self-publish and continue our quest for financial help while we continued to work on the book. It would all fall into place, we figured. Then, we reached a point of no return. Unfortunately, it was also the point of no money. But then, on June 23, 1999, sadly, my dear Gramma Rose passed away. She left me enough money to finish the project. She'd always told me things had a way of working out. Over the years, I have drawn a lot of strength from women - role models who, to my mind, sought to excel in both traditional and non-traditional roles. I wanted Dare to Dream to be a collective tribute to these women and their lives.
One hundred women have come together in this book. They reflect a mature, spiritual and powerful guiding force in our country today. It has been an incredible personal journey, riveting and rewarding, fraught with frustration and delight.
From a 737 cockpit with Rosella Bjornson,
To the rock-climbing adventure with Sharon Wood,
To the sunset at Peggy's Cove with Janet Conners and Dawna Ring...
The memories will remain with both Karen and I for a lifetime.
The Dare to Dream dames are my heroes.
They are the reason behind Dare to Dream and I applaud them.
Their stories are truly an inspiration to us all.
The tributes and reflections found in the pages of Dare to Dream are intended to resonate with the personality of each woman I photographed. Together with the portraits, these words comprise a story worth telling.
I love the cover -- it reflects the young and the mature, coming full circle in life, hopes and dreams becoming a reality.
As with Look Beyond, I wanted to find a foundation that Dare to Dream could support. In came a new and wonderful non-profit organization for women, called the DIVA Foundation. Its primary focus is bettering women's health issues. Although we have a long way to go with distribution (being a small publishing house, we don't have access to national distribution the way bigger ones do) but thanks to Indigo and the many individual women who are helping to promote this book, I am proud to say that Dare to Dream has reached national best-seller status in Canada.
I dared to dream to make this project happen. Now, my biggest dream is to have it on every coffee table across the country. I love that saying, "Dream big!"
The Business Plan: The Best Foundation for Every New Business
What a business plan is, why you need one, tips and resources to get you started.
Many entrepreneurs who are just starting
out think they don't need a business plan unless they want
to borrow money from their bank or another source of financing.
Not true.
A business plan is the road map to the
future for your new business. It shows where you're starting
from, your hoped-for destination (your business goals) and
how you plan to get there (your business strategy). And, like
a good map, it will illustrate the territory you're travelling
into (your markets, customer base, competitors), obstacles
(competition, potential funding or cash flow shortages, production
bottlenecks), alternative routes (contingency plans, other
sources of funding), and so on. And it allows you to check
your progress as you go - to see how far you've travelled
toward your destination - and how far you still need to go.
A good business plan will:
- Explain the concept of your business (the product or service you will offer and how);
- State the objectives of your business;
- Identify the resources (money, expertise, etc.) your business will need to achieve its objectives;
- Explain how those resources will be obtained;
- Explain why the business will succeed.
Putting a business plan together does
take some research, thought and work. (That's why you shouldn't
wait to write one until someone asks to see it.) But it's
not difficult to do. And there are lots of resources out there
to guide you.
To start, take a look at the Royal Bank's
on-line business planning guide, The Big
Idea v. 2.0. It includes a planning guide, examples that
show you what a well-structured business plan looks like,
and tips and strategies from other small business owners and
entrepreneurs.
Another helpful on-line guide to business
planning has been put together by Industry Canada. See the
Interactive Business Planner at http://www.cbsc.org/ibp/.
(Note: on this site, you can also find the location of the
Canada Business Service Centre nearest you.)
There are also hundreds of books available
on starting your own business (and there's at least one on
starting almost any kind of business you can imagine). Most
include at least some information on putting together a business
plan. The most helpful are those written from a Canadian perspective
as they cover things like registering a business in Canada
and the GST. A few good ones include:
- Starting a Successful Small Business in Canada. By J.D. James. Published by Self-Counsel Press;
- The Complete Idiot's Guide to Starting a Home-based Business. By Barbara Welman. Published by MacMillan Canada.
Help with Business Planning: The Big Idea v.2.0
Get step-by-step instructions on
putting together your business plan with the RBC Royal Bank's on-line
business planning guide, The
Big Idea v.2.0 . It includes a planning guide, examples
that show you what a well-structured business plan looks like,
and tips and strategies from other small business owners and
entrepreneurs.
Finding Money to Start Your New Business
What you'll need to get started
(over and above a wing and a prayer) and explanations of the
different kinds of financing available to new businesses.
How much do I need?
Kinds of start-up financing
Financing your new business - and yourself
while you're starting your new business - is the toughest
challenge for many new entrepreneurs. It can be especially
difficult for women if they haven't worked outside the home
or established their own credit rating.
Many fledging entrepreneurs believe
they'll be able to secure start-up financing from their banks.
Some do - usually if they have collateral (e.g. equity in
a home), a good credit rating and/or a great business plan
and a track record in business.
Others decide to finance their business
start-up out of their own pockets - from savings or income
from another job. Still others borrow from friends or relatives
- which is fine if you've also worked out how and when you'll
be able to pay them back and can stick to that commitment.
What you absolutely do need, before
you go out and get those new business cards printed, is a
general understanding of how much money you'll need to get
your business off the ground and where you can get it.
How much do
I need?
If you've gone through the critical step of
putting together a business plan, you should
have a good idea of how much you'll need to get your business off
the ground and keep it running for the first few months - or until
you can realistically expect to see some revenues coming in.
Even for a basic home-based consulting
business (one of the lowest-cost kinds of businesses to start),
you'll need at least a few thousand dollars for:
- A computer and printer (these are essential business
tools today, so don't skimp and buy a "real bargain" that
will break down, become outdated in six months or not come
with a good support line);
- Office supplies and stationery like business cards, letterhead,
etc.
- A serviceable desk and ergonomic chair (to save your back
during the long hours you'll be putting in to get going);
- Installation costs for at least one business-dedicated
telephone line and maybe two, with the second one a shared
line for your fax and Internet connection. Also estimate
monthly service charges for at least six months.
Plus, you'll need a few extra hundred
for miscellaneous start-up costs including business registration
fees and business insurance (home-based businesses can usually
get a basic rider on their homeowner's or tenant's policy
for about $120.)
But wait. You're not finished yet. You'll
also need funds to cover your living expenses for at least
a four-to-six month start-up period - the time it usually
takes to find, complete, invoice and get paid for your first
work. This includes all the usual expenses such as:
- Mortgage payments or rent;
- Utilities;
- Groceries and miscellaneous expenses;
- Kids' expenses like clothes, dental bills, school fees, music lessons.
An item often overlooked by fledging
entrepreneurs is disability insurance. How will all of those
household expenses continue to be paid if you're sick or injured?
If family members depend on your income, you'll need to make
sure these funds are replaced. It's not cheap but it can be
one of the best investments you'll make.
Kinds of start-up
financing
Generally, there are two kinds of business
financing, debt and equity. Debt means borrowing money, usually
from family, friends, banks and other financial institutions
or professional investors. Equity financing essentially involves
selling a share of your business to an investor. (Equity also
includes whatever money you've invested in your business.)
A third source of financing - one often overlooked by new
entrepreneurs - is government programs.
Here's a quick look at each type, with
some pros and cons:
Debt financing:
A benefit of borrowing money is that interest paid on business
loans is often tax-deductible. The downside is that - sooner
or later - you have to pay the money back, whether your business
succeeds or not.
- Loans from friends and relatives: If your start-up
costs aren't significant and you're confident you'll be
able to pay the money back (even with interest) within the
agreed-upon time, this is often a good way to go. But friends
have been lost and families estranged by borrowing-gone-bad
so weigh the risks carefully.
- Borrowing on credit cards: More than one small
business has been successfully launched this way, again
if the financing needs are small. However, credit card interest
rates are high compared to other sources of money. And failing
to make your minimum payments on time can play havoc with
your credit rating.
- Banks:
Loans from a bank can take different forms, such as
a personal or business line of credit, a short-term demand
note or a term loan for the purchase of a specific asset.
Banks usually lend to small businesses on a "secured basis"
meaning your business equipment, inventory or accounts receivable
are treated as a form of collateral.
- Lease
financing: You can acquire office equipment or a
"company car" through leasing, which means you're making
monthly payments instead of purchasing things up-front,
for cash. Because payments usually just cover the expected
depreciation on the asset, they are generally lower than
when you're purchasing the item outright, especially through
an installment or "rent-to-own" plan. (This can help your
cash flow.) However, at the end of the lease term, remember
you won't own the asset.
- Trade credit: Many suppliers (e.g. printers, courier
services) will require a credit card or "cash on delivery"
at first, but may extend trade credit once you've established
a good relationship and record of paying your bills on time.
Again, obtaining trade credit is another way to ease cash
flow: instead of having to pay every invoice immediately,
you get some time (often 30 days from the date of invoice)
to pay.
Equity financing:
Less often used by new entrepreneurs, equity
financing can be a viable route if your start-up costs are greater
and you have a sound business plan. There are essentially two kinds
of investors who may be willing to buy an ownership share in your
company:
Private or "angel" investors:
Some individuals who have been successful in their own businesses
and have accumulated significant wealth (often by selling
their company) are interested in investing in promising business
ventures and sharing their expertise. Most will want to participate
in the management of your business to some extent but their
advice and experience can be invaluable.
Venture capitalists: Venture capital funds take the risk associated with an equity investment in exchange for the possibility of making high returns on that investment. The cost of venture capital is usually high when compared with borrowing from a bank, for example. That cost is the percent of your company and amount of control you must give up in exchange for the financing.
Government programs:
Canada's federal and provincial governments (and many municipalities)
offer a range of incentive
programs for small business. Some offer managerial and
financial advice, others loans, rebates and tax cuts, often
in return for job creation commitments. The "red tape" can
be frustrating and some programs require you already have
revenues of $100,000 or more to participate. Still, new entrepreneurs
should be aware of the major kinds of help available, including:
Job creation programs: Both the
federal government (through the Employment Insurance fund)
and many provincial governments offer wage subsidies and rebates
for small businesses willing to give work experience to students,
individuals graduating from welfare-to-work programs and so
on. Programs like the Ontario government's Job Connect are
relatively red-tape free.
Financing and loan programs:
Small business development initiatives range from financing
programs (e.g. the Small Business Loans Act) to local or regional
economic development funds and programs. There are also several
industry-specific initiatives in areas such as tourism and
high tech, and group-targeted programs for women, aboriginals,
youth and people with disabilities.
Tax incentives: Smart entrepreneurs
take advantage of every legal tax deduction and incentive
available. You may also be able to access special research
and development programs to offset the costs of developing
new products.
Exporting assistance: New entrepreneurs
are seldom prepared to leap right into exporting. But, if you have
international work experience or a product or service that you know
you can sell abroad, check out the various trade services and assistance
programs available through International Trade Canada and Export Development Canada.
You'll find a variety of information on these
kinds of programs through many federal and provincial government
Web sites, and other sources, including:
The Business Development Bank of Canada: www.bdc.ca
Industry Canada: www.ic.gc.ca
International Trade Canada (for export
financing programs): www.infoexport.gc.ca
More information on financing
Start-up Advice from Women Who've Succeeded
You may have heard about the need
to love what you do and the importance of networking when
starting a business. But has anyone told you how essential
it is to know when to "fire" a client and to maintain a sense
of humour?
If you're thinking of starting your
own business, remember, you can gain inspiration as well as
practical advice on things to do - and the pitfalls to avoid
- from successful women business owners. Read on for practical
tips and inspirational advice from freelance writer Rondi
Adamson and Wendy Kohler Boothman, president of TalentedWomen.com.
Rondi Adamson (rondia@ibm.net)
1. Find what you love to do and find a way to get paid for it.
Rondi started freelancing three years ago and now has a successful
writing career, contributing to publications like The Globe
& Mail, The National Post and Saturday Night.
2. Have a financial backup when you are starting out. Rondi is also a translator and had that
to fall back on as a revenue source while she was building her writing
business.
3. If you believe in what you want to do, just do it. Tune out the negativity of
others and yourself. Rondi was told by some around her that
she would never get published and yet her first article was
picked up by an American magazine and reprinted across the
U.S.
4. Be open. You never
know what's around the corner and what it can lead to. Remember
that no work in your field is beneath you when you are starting
out. A piece Rondi had published in a sub-standard paper was
spotted by a Globe and Mail editor, and now she is a regular
contributor to the paper.
5. Get over the fear of failure. Keep at it even when things don't work out. If you keep trying, you will build confidence and you'll attract more business.
Wendy Kohler Boothman (wendy@talentedwomen.com):
1. Network and follow-up.
The most important thing when starting out is to build and
nurture contacts through networking. Collect business cards
and follow through (send an e-mail, have coffee or whatever).
It's personal marketing: keep yourself in front of your potential
client's mind. You never know where business will come from.
Through her networking, Wendy has found clients in Europe
and the U.S.
2. Establish credibility by nurturing your contacts. Know what you want, focus, and use your contacts
to the maximum as part of your research. After starting a number
of businesses, including Portugal's first modelling agency, Wendy
used her contacts to research and launch www.TalentedWomen.com
a professional network designed to match and connect a wide range
of highly skilled, freelance women with contract job opportunities,
on-line.
3. Set your own standards,
e.g. on working from home - and only deal with clients who
accept those standards. If you have a difficult client, if
you don't gel, if you are not treated with respect or given
reasonable deadlines, be fair to yourself and refer them to
others (your competitors). Otherwise it will affect your sleep,
your health, and your tolerance and, ultimately, your work.
4. Find others to network with at a local level, since starting a business
can be lonely. Get involved in business associations and the
community to meet other business people. It's a real luxury
to have someone to bounce ideas off. Never be shy about asking
for help and always be sure to return a favour.
5. Develop a great sense of humour and have fun! It's so important to be able
to laugh at our mistakes and celebrate our successes, large
and small. Be alert to people with a similar sense of humour;
it will make your professional life even more worthwhile.
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