Business Plan

ENTREPRENEUR'S
GUIDE TO SMALL
BUSINESS
Guide to Local Resources
10 Steps To Starting A Small Business
Writing A Business Plan
Glossary Of Terms
Key Business Ratios
Contact List
GUIDE TO
LOCAL SMALL BUSINESS
RESOURCES
Local Organizations
Financial Assistance Programs
Business Consulting Services
Workshops, Seminars & Courses
Hiring, Training, & Wage Subsidy
Programs
Business Information Resources
Suggested Readings & Local Publications
Guide To Local Small Business Resources 3
LOCAL ORGANIZATIONS
BRANTFORD BUSINESS SELF HELP OFFICE
Operating as a division of Economic & Business Development Services at City Hall, the
Brantford Business Self Help Office provides advice and counsel to entrepreneurs either
starting up or already operating a business. The Office provides personal consultation, a
mentorship program in partnership with area accounting and legal firms, a resource
library and entrepreneurial workshops. Services are also available to assist with site
location requirements.
The Office is a regional access site for the Canada-Ontario Business Service (COBSC)
which provides clients an access point to business related information on over 1400
federal and provincial programs, services, and regulations, as well as other business
information.
The Business Self Help Program is funded by the City and the Ministry of Economic
Development – Trade & Tourism. There is no charge for consultation, however, a
nominal fee is charged for seminars and publications.
More information on these programs and services can be found in the following
sections: Business Consulting Services, Workshops, Seminars & Courses, and
Business Information Resources.
ENTERPRISE BRANT
Enterprise Brant has services for new and existing businesses including financial
assistance, seminars, consulting, meeting rooms, equipment rentals and a business
resource area. Enterprise Brant also offers the Self Employment Assistance program
(SEA) for claimants of Employment Insurance and Reachback clients.
Some programs require individuals to meet eligibility requirements. For more

information on these programs and services see the following sections: Financial
Assistance, Business Consulting Services, Workshops, Seminars & Courses, and
Business Information Resources.
ONTARIO WORKS
Ontario Works (OW) offers a Self-Employment program that helps recipient's of/or
those eligible for OW in becoming self-employed. Business Plan writing, individual
consultation and registration in a formalized program are included in the services
provided. More information on the OW program can be found in the following
sections: Business Consulting Services, and Hiring, Training & Wage Subsidy
Programs.
The Entrepreneur's Guide To Small Business In Brant County

LOCAL ORGANIZATIONS Continued
BRANTFORD HUMAN RESOURCE CENTRE OF CANADA (HRCC)
HRCC assists local businesses with their hiring, recruiting and information needs.
HRCC services include recruitment assistance, wage subsidy programs, Electronic
Labour Exchange, labour market information, Industrial Adjustment Service, and
Employment Insurance information for employers. More information on these
programs and services can be found in the following sections: Hiring, Training & Wage
Subsidy Programs, and Business Information Resources.
BRANTFORD REGIONAL CHAMBER OF COMMERCE
Entrepreneurs have access to the Chamber’s Exporting Trade Services, business

seminars, and information library. Members are offered a group insurance plan, and
Visa & Master Card discounts. More information on these programs and services can be
found in the following sections: Business Consulting Services, Workshops, Seminars
& Courses, and Business Information Resources.
BUSINESS DEVELOPMENT BANK OF CANADA
The Business Development Bank of Canada offers a wide variety of financing and
business consulting to meet the specific needs of any small and medium-sized business.
More information on these programs and services can be found in the following
sections: Financial Assistance, and Business Consulting Services.
BRANT COUNTY EMPLOYMENT SERVICES (BCES)
BCES, a community partnership between HRCC and the City of Brantford, offer
employer assistance including local job displays, recruitment assistance, labour market
information, access to wage subsidies, and interview facilities. More information on
these programs and services can be found in the following sections: Hiring & Training
Programs.
MOHAWK COLLEGE CONTINUING EDUCATION & BUSINESS DEVELOPMENT
Mohawk College has several services to assist local entrepreneurs. Mohawk offers a
number of distance education courses pertaining to small business. A Training
Consultant at the Business Development Office can assist employers with training
requirements, while the Job Connect program offers an employee wage subsidy. More
information on these programs and services can be found in the following sections:
Workshops, Seminars & Courses, and Hiring, Training & Wage Subsidy Programs.

FINANCIAL ASSISTANCE PROGRAMS
ENTERPRISE BRANT
A. Business Loans: Small Business Loans for business start-up or expansion.
Amount: Up to $125,000 for any one business.
Program Criteria: Business must be located in Brant County or Brantford. Other

areas of financial assistance must be exhausted before a business may be considered.
B. The Self-Employment Assistance program (SEA): The SEA program is an HRDC

funded program for individuals to become self-employed. It encourages self-
employment through financial and business incentives. In addition, the SEA
program provides Business Skills Development and Start-up Counselling.
Amount: Dependent upon requirements and eligibility of participant.
Program Criteria: the individual must be a qualified Employment Insurance claimant

or “Reach Back” client and not have previously participated in the SEA program.
A. Micro Business Program Loan: offers specialized financing to support innovative

small and medium-sized businesses that demonstrate commercial viability.
Amount: Up to $25,000 for new businesses and $50,000 for existing businesses.
Program Criteria: Loan must be used for working capital, acquisition of fixed assets,
start-up costs, or specific requirements such as market research or consultant fees.
B. Young Entrepreneur Financing Program: gives entrepreneurs a solid foundation to

build a new business. 50 hours of business management support is included for a fee.
Amount: Term Financing of up to $25,000.
Program Criteria: Entrepreneur must be between ages of 18 and 34.
C. Other Financing Programs: Contact BDC or visit their web-site for more
information on any one of their financing programs for small businesses.
• Tourism Investment Fund • Seed Capital
• Term loans & Innovation loans • Term Loan to Implement E-Commerce
• Working Capital for Growth • Growth Capital for Aboriginal Business
• Working Capital for Exporters • Cultural Industries Development Fund
• Venture Loan Financing • Industrial Research Assistance Program
• Venture Capital Financing • Other Financing Partnerships
FINANCIAL ASSISTANCE PROGRAMS Continued
CHARTERED BANKS
A. Student Venture Loan: Royal Bank offers the Student Venture Loan to encourage
youth in the start up of their own business.
Amount: Student Venture Loan of up to $3,000.
Terms: Prime +1% interest rate. Loan is interest free if repaid by September 30th.
Program Criteria: Individuals age 15 to 29 currently attending school or returning to

school full-time in the fall. The business must operate between May 1 and
September 30.
Applications Available: at designated Royal Bank branches or the Brantford Business

Self Help Office.
B. Young Entrepreneurs Program: Royal Bank encourages youth currently not

attending school full-time to start up their own business.
Amount: Loan amount of up to $7,500.
Terms: Prime +2% interest rate. Loan period of up to 60 months.
Program Criteria: Age 18 to 29, currently not attending school full-time, must be
starting a new business and are required to complete a 12-hour training workshop.
Applications Available: at designated Royal Bank branches or the Brantford Business

Self Help Office.
C. The Business Improvement Loans/Small Business Loans Act: is a federal program

that is offered by most chartered banks. The program allows new and existing
businesses to obtain financing for the purchase, installation, renovation, or
improvement of equipment, land or buildings necessary for the start-up or expansion
of their business.
Amount: offers loans of up to $250,000 for a period of up to 10 years.
Terms: Interest rate may vary between banks. 2% loan administration fee is charged.
Program Criteria: Loan must be used for fixed assets only.
Applications Available: at any chartered bank.
Note: When financing a business, always find out what financing programs are available in
addition to those listed above, since there are always new programs being offered.

BUSINESS CONSULTING SERVICES
A. Business Management and Start-up Consulting
Consulting services provided free of charge to entrepreneurs either starting up or already

operating.
A. Personal Consultation: For starting up or managing a small business. Consulting is

also available to help entrepreneurs prepare a Business Plan. A consultant will
review your plan or guide you while preparing one.
B. Mentorship Program: The Business Self Help Office, in conjunction with area
accounting and legal firms, offers a 30-minute, no charge professional consultation to
entrepreneurs either starting up or operating for less than 24 months. Clients are
required to book in advance with the Self Help Office and leave a $20 deposit that is
refunded at the appointment. Consultation for Business related topics only.
C. Location Selection: A Development Officer can assist new or existing businesses in

their location requirements for land and/or buildings – commercial/industrial. The
office provides available building and land listings, which acts as a starting point for
finding the right location. Information provided in the listings include
space/building size, location, lease or asking price, and owner/contact information.
The Development Officer may be able to advise entrepreneurs with an analysis of the
location(s), type of premises needed for your business, leasing costs, utilities and
taxes, zoning requirements and a market demographic profile.
D. Business Regulations: Entrepreneurs can receive information and consultation on

the rules and regulations that will affect their business. The Business Self Help Office
can help identify what laws pertain to you and how your business will be affected.
E. Other Source of Help: A consultant can identify government programs & services
available to an entrepreneur and assist them in meeting application requirements.
While the Office does not directly provide financial assistance, the consultant will
provide objective advice on eligibility and assist with meeting the requirements.
ENTERPRISE BRANT
Consulting services are provided at no cost to anyone looking to start a business or

currently operating a small business in Brant County or Brantford.
Enterprise Brant has business consulting and planning assistance for both new and
existing businesses. Enterprise Brant will monitor a company through regular contact
and offer assistance in cash flow management budgeting, marketing, and administration.

BUSINESS CONSULTING SERVICES Continued
ONTARIO WORKS
Recipients or those who are eligible for Ontario Works benefits may qualify for the 60
week program that helps individuals become self-employed. One-on-one consulting and
assistance writing a business plan is provided. Participants must complete their first
business transaction in 16 weeks.
BUSINESS DEVELOPMENT BANK OF CANADA (BDC)
Any small to medium sized business may use the following consulting services. Fees for
consulting services are dependent on the assistance needed by the company.
Growth Consulting: BDC consults on diagnosing areas of growth potential, feasibility

of various business initiatives, provides marketing research, identifies and implements
cost saving measures and provides planning consulting.
Quality Consulting: this line of consulting focuses on financial management, human

resources and information management, Business Process Review, and Benchmarking.
BDC will also help companies achieve certification for ISO 9000, HACCP (food safety
system), or QS 9000 (automotive industry).
B. Export Trade Consulting
Businesses looking to export their products can use the free exporting trade services
offered by the Chamber. As an HRDC funded program, the Export Trade Department
provides information about exporting products all over the world. Department services
include exporting seminars, on-site exporting and international trade library, personal
advice and counselling, and an internet on-line library that is available at the office or
accessed through the Chamber web page @ http://www.chamber.mainpage.net.
The Bank provides export consulting services to any small to medium sized business
looking to export. Fees for consulting services are dependent on the assistance needed
by the company. Export consulting services focus on a number of areas including the
following programs: NEXPRO (in-depth look at the exporting process), Market
Intelligence, Export Readiness, Financial Plan, Distribution Network, NAFTA Audit &
Systems, Trade Missions, and Protocol.

WORKSHOPS, SEMINARS & COURSES
The Office provides workshops to entrepreneurs starting up or already operating.

Workshop costs range between $25 and $40 (includes course material).
Workshops Available: Introduction to Entrepreneurship

Business Planning & Legal Considerations
Marketing/Sales & Sales Strategies
Financial Planning & Record-keeping
Contact: Business Self Help Office (759-4150 ext.256) for information and registration.
ENTERPRISE BRANT
Business seminars held by Enterprise Brant cater to both new and existing small
businesses and their employees. Registration fee for seminars is $35.
Workshops Available: New seminars are always being held so call for a schedule.
Examples include:
Competitive Marketing Strategies
Boosting Your Telephone Skills
Interviewing & Hiring Employees – Techniques & Legal Issues
Contact: Enterprise Brant (752-4636) for information and registration.
The Chamber provides business information seminars that are available to both
members and non-members. Registration fees vary for members and non-members.
Seminars Available: New seminars are always being held so call for a listing.
Examples include:
Marketing Strategies
E-Commerce
Situational Leadership
Contact: The Chamber (519-753-2617) for information and registration.
MOHAWK COLLEGE CONTINUING EDUCATION
Mohawk College offers a wide variety of business and business related courses that
entrepreneurs can use to help run their business. Examples include Business Applied
Accounting, and The Internet. Course fees may vary. Visit the Mohawk web site at
www.mohawkc.on.ca for an updated list of distance education courses.

HIRING, TRAINING & WAGE SUBSIDY PROGRAMS
BRANTFORD HUMAN RESOURCE CENTRE OF CANADA
A. Recruitment Assistance: Employers can showcase full-time, part-time, temporary

and contract job openings on a 24-hour “telemessage” phone system, computerized
job display, or by internet at www.on.hrdc-drhc.gc.ca/bhn. HRCC also offers
interviewing facilities and a referral service that includes a Resume Mailbox.
B. Electronic Labour Exchange: a computer-based recruitment tool that matches

employer job profiles with job seeker profiles. Advertise job vacancies at
http://www.ele.spe.org.
C. Targeted Wage Subsidy Program: Assists unemployed individuals gain suitable and
permanent employment. Eligible employers receive a wage reimbursement to help
defray costs associated with a new employee’s orientation to the work site and job.
Type of Subsidy: HRCC will reimburse up to 50% of wage, to a max of $7.50/hour.
Eligibility: companies, organizations, agencies, municipalities and other employers

who offer full time (min. 30 hrs/week) and continuing employment following the
subsidy period are eligible. Eligibility is also based on the value of work experience.
D. Youth Internship Program: Encourages employment opportunities for youth under

age 30 who have recently completed their field of study but have limited work related
experience. Priority given to growth industries with higher long-term potential.
Type of Subsidy: HRCC reimburses the business up to 50% of the participants hourly
wage, to a maximum of $7.50/hour. Financial assistance and duration is negotiable.
Eligibility: companies, organizations, municipal governments, public health and

educational institutions offering full time (min. 30 hrs/week) and continuing
employment following the subsidy period are eligible. Other considerations apply.
E. The Human Resource Office for Employers in Ontario: The HROE Internet site
www.hroe.org contains free information to help employers manage the HR side of
business. Topics of interest include:
! Employment Standards and ! Occupational Health and Safety

Practices ! Pay and Benefits
! HR Management Practices ! Recruitment, Training and
! Labour and Employee Relations Organizational Development
F. Industrial Adjustment Service (IAS): Assists employers and employees jointly to

research, develop, and implement action plans to deal with human resource planning
and worker adjustment issues. IAS is for employers, associations, unions, other
employee representatives, municipalities or provincial/territorial governments.

HIRING AND TRAINING PROGRAMS Continued
G. Work Sharing Program: An Employment Insurance program that helps employers

retain staff and adjust their work activity during unavoidable work shortages. The
Program allows for a reduced work-week and the partial compensation for reduced
wages, to avert temporary layoffs, or cushion the impact of permanent layoffs.
Employee Eligibility: Permanent full or part-time employees of the eligible firm can
use the program. Minimum number of employees in a work sharing unit is two.
Employees must file a claim for employment insurance and be eligible for benefits.
Employer Eligibility: Businesses or non-profit organizations that have been in

operation for a minimum of 2 years. Employer must show that the decrease in
production is temporary, unavoidable and non-seasonal. A business plan, outlining
a strategy to bring back full production is also required.
ONTARIO WORKS
A. Enhanced Job Placement Program: Employers can receive assistance when

recruiting and selecting Ontario Works Participants. Ontario Works will help
develop training programs that include a training plan for on-the-job, third-party, and
pre-employment training. Training Subsidies are available.
BRANT COUNTY EMPLOYMENT SERVICES
A. Job Opening Display: computerized networks for displaying employers job openings
B. Recruitment Assistance: A referral service including a resume mailbox whereby

BCES will accept resumes on the employer’s behalf is available. BCES provides
assistance with the selection of appropriate applicants for the available positions.
C. Other Services: BCES has interview facilities for employers to interview their
prospective employees in private, away from their business, and access to wage
subsidies.
MOHAWK COLLEGE
A. Job Connect Program: Job Connect is a training program that offers a wage subsidy
and free support services to employers willing to provide on-the-job training and
looking to hire entry-level candidates who are out of school and out of work.
B. Training Consulting Services: A Consultant can advise companies on current

training methods and strategies. Consulting focuses on Training Needs Analysis,
Training Plan Development, and Training Plan Implementation.

BUSINESS INFORMATION RESOURCES
An extensive business resource area for conducting research and gathering business
information, including government programs & services, is available to the public. The
Office hosts a Canada-Ontario Business Service Centre (COBSC) access site, which is
equipped with a public access workstation, Internet, and electronic & print resources.
Information that can be found includes local, provincial, and federal demographic and
economic information, Industry and Market Information, and business regulations.
How-to Books, business guides etc… are also available.
The COBSC workstation provides access to information on over 1400 federal and
provincial programs, services and business regulations. Other services through COBSC
include:
• Information Agents or Interactive Voice Response System (IVRS) provides 24-hours
a day information on financial assistance, licenses and permits, employee
deductions/ income taxes, and importing/exporting information
• direct access to the Info-FAX system 24-hours a day
• Database of information that can be received by fax or by mail
• Referrals to contacts in participating organizations for more in depth inquiries
relating to specific services and programs
ENTERPRISE BRANT
The Entrepreneurial Resource Centre allows individuals to sign out books, literature,
magazines and videos. Internet access and computer workstations for businesses,
entrepreneurs and employees can be used free of charge.
BRANTFORD HUMAN RESOURCE CENTRE OF CANADA
The Brant HRCC Labour Market Information Service provides an extensive amount of
labour market information. The information includes labour supply & demand, local
wages & conditions of employment, vacancies, labour force surveys, economic activities,
occupational profiles, and analysis of labour market issues or trends. More information
is available on the Brantford HRCC web-site at www.on.hrdc-drhc.gc.ca/bhn.
The Chamber’s Business Resources area allows entrepreneurs to learn about business
and collect information. Available are exporting and international trade libraries, books
and videos, seminars on tape, and reference material including a number of directories.

SUGGESTED READINGS AND LOCAL PUBLICATIONS
Economic & Business Development Services produces literature to allow businesses and
entrepreneurs the opportunity to evaluate Brantford as a location. Publications include:
Industrial Directory: provides the business community, developers and investors with
up-to-date information on manufacturing firms located in the Brantford area.
Community Profile: provides up-to-date statistics and data on the City of Brantford.
Economic & Business Development Services Newsletter: provides information on

what new businesses are setting up in Brantford; highlights, changes or noteworthy
events regarding local businesses, updates, events and seminars to be held.
General Business Information: quick facts on Brantford that include household

population and demographics, trade area, industrial growth, building activity, and
lifestyles.
CD-ROM “Brantford’s got IT”: multimedia promotional and information marketing

tool designed to promote the City and vicinity and show the City’s business and lifestyle
advantages.
Industrial and Commercial Building/Land Listings.
The Chamber produces “In Touch”, a monthly publication that informs businesses and
entrepreneurs with what is going on in Brant County’s Business community. "In Touch"
is a great way to hear about what has been going on and what is coming up. The
publication also allows members to advertise in the magazine, which is distributed to
over 2500 businesses and organizations monthly.
THE EXPOSITOR
The Expositor provides individuals an opportunity to keep informed on what is

happening in the business community on a daily basis. The paper can help you foresee
any changes in regulations that may affect your business, inform you of upcoming
business opportunities and events, and provide a great deal of other information that can
help with the starting-up or running a business.

10 STEPS
TO STARTING A SMALL
BUSINESS
Step 1: Research Your Idea

Step 2: Select Business Advisors
Step 3: Locate Start-up Financing
Step 4: Select a Business Structure
Step 5: Register a Business Name
Step 6: Select a Business Location
Step 7: Obtain Business License*
Step 8: Register for PST and GST
Step 9: Meet Hiring Regulations
Step 10: Meet Health & Safety Codes
*If necessary
10 Steps To Starting A Small Business 15
RESEARCHING YOUR BUSINESS IDEA
Where to Go:
1) Business Resource Areas - See the Local Resources section for a list of organizations
that provide a free resource area for entrepreneurs to research their business idea.
Computer/ Internet access is also available.
2) Brantford Public Library - Residents of Brant County can use the following resources:
• How-To Books/ Videos and computer software guides
• Business Directories, Business magazines, local and out of town newspapers
• Telephone book information from all across North America
• Federal/Provincial Legislation including tax information
3) Internet: Government offices, banks, associations and newspapers all offer information
over the Internet. A listing of some helpful Internet sites can be found in Appendix C.
Sources Of Information:
1) Government Information: Information from the following organizations can be found

at the library or using their Internet sites.
• Industry Canada has publications on a wide variety of business topics
• Statistics Canada offers information on demographics, imports/exports, and sales
• Census Tracts for your local area breaks down population information in categories
• Ministry of Economic Development – Trade and Tourism can provide business
information on a number of topics
2) Competitors: Compile a list of competitors using the Yellow Pages and Trade
Directories. Visiting competitors will assist in identifying products or services, price,
and marketing tactics.
3) Associations: Associations relevant to your business can provide advice, statistics and
other industry information. Association Memberships are occasionally required.
4) Periodicals: Magazines, Trade Journals, and Newspapers can be used to find

information on industry trends and issues, legislation and other industry information.
5) Customers and Suppliers: Surveying potential customers identifies whether there is a

need for your product or service. Suppliers can provide information on pricing,
competitors, available products, and industry standards or trends.

SELECTING BUSINESS ADVISORS
Whether starting up or operating a business, having trusted advisors can be the difference
between success and failure. Business Advisors can provide a wealth of sound business
advice, help you avoid costly mistakes and ultimately help you get to where you want to go.
Ask lots of questions, be honest with your advisors, and keep them up-to-date with what is
happening with your business.
1) Lawyer
Often asking a friend, colleague or business associate for a recommended lawyer is a

good place to start. A lawyer can review and/or prepare any legal documents for your
business such as partnership agreements, leases, loans, or other business contracts. In
addition, a lawyer may be able to provide advice on how to structure your business and
its financing, and advise on the purchase or sale of a business.
2) Accountant
An accountant can provide expertise on taxes, provide advice on an appropriate

accounting system, and a record keeping method for your business. Advice from your
accountant will allow you to have an effective accounting system in place to provide
accurate financial information. An accountant can help identify business deductions,
tax implications of different business structures and add credibility to your financial
statements.
3) Banker
Selecting your banker is just as important as a lawyer and accountant. You must have
trust in your banker since they will be acting as a financial advisor to your business. An
experienced banker can be a great asset to a small business. Remember that a banker
can provide a great deal of sound financial advice for your business.
4) Insurance Agent/Broker
There are all types of insurance to meet the many risks that a business faces everyday.
Insurance provides financial protection to business owners, yet is often overlooked
during business start-up. If starting a home-based business, you may require separate
business insurance or additional insurance to your home coverage.
Referrals from friends, colleagues or business associates can provide a good starting
point for finding an Insurance Representative. Since most businesses may require
property insurance and liability insurance, having a representative that understands your
business needs is important. Other insurance options include employee insurance and
loss of earnings insurance, which can be discussed with your representative.

SOURCES OF START-UP FINANCING
Finding financing for a new business is usually a difficult process. Without a track record, a
new business is often considered a higher risk than an established business. For this reason,
Entrepreneurs may need to look several places to find the funds they need.
1) Self Financing
Approximately 80% of all new business start-ups are financed through personal savings.
Carefully analyze your resources and determine what you can afford or are willing to
invest.
2) Family and Friends
Often called “love money”, family and friends are frequently willing to invest in your
business idea, as long as it is based on a solid business plan. Like any loan, develop a
formal agreement that includes a repayment schedule and terms of the loan.
3) Partner(s)
A partner can increase the financial resources and the managerial strengths of a business.
Evaluate the option carefully. In the event of a partnership, be sure to develop a written
partnership agreement
4) Private Investor(s)
Private Investors or “angels” are high net worth individuals that are often willing to
invest in businesses that can demonstrate “high growth potential”. Private investors can
be found through networking, advertising, or professionals such as lawyers and
accountants. As a (silent) partner the investor is not usually involved in day-to-day
management, but may act as an advisor. Terms, conditions and interest must be
negotiated and clearly defined in a written, legal document.
5) Banks, Trust Companies, Credit Unions and Suppliers
Lines of credit, credit cards and (secured) loans are often a major source of financing.
You must analyze your available collateral and complete a business plan before
approaching your banker. Suppliers can help finance your business and cash flow
through their payment terms such as “net 30 days”.
6) Government Programs
Financial Assistance programs are available at all levels of government. Most programs
have certain eligibility requirements that must be met before being considered for
assistance. For information on available programs see the “Business Resources
Section”.

SELECTING A BUSINESS STRUCTURE
1) Sole Proprietorship
Owner of a sole proprietorship is wholly liable for all debts and actions (i.e. 100% liable
for the business). Business income tax is filed with the owner’s personal income tax.
Advantages Disadvantages
• Low start-up costs • Unlimited liability
• Greatest freedom from regulation • Lack of continuity
• Owner has direct control • Difficult to raise capital
• Min. working capital requirements
• Tax advantages
• All profits to owner
2) Partnership
Owners of a partnership are each wholly liable for all company debts (i.e. 100% liable for
the business, although profits may be divided 50%). When entering a partnership, it is
strongly recommended that a Partnership Agreement be drawn up, which can be
assisted by a lawyer. Consult the Partnership Act and the Partnership Registration Act
for more information. The Acts can be purchased from Publications Ontario.
• Ease of formation & low start-up costs • Unlimited liability
• Additional sources of venture capital • Lack of continuity
• Broader management base • Divided authority
• Possible tax advantages • Difficulty in raising additional capital
• Limited outside regulation • Hard to find suitable partners
Note: If you intend to have a business name other than the owner’s personal name, it must
be registered. See Business Name and Business Number Registration for more details.
3) Corporation
A Corporation is a distinct, legal entity where owners have a legal liability for damages
and debt up to the limit of their investment. Since incorporating is complicated, legal
and accounting assistance is recommended. Fee for incorporating a business is $315. A
search must be conducted to ensure the corporate name is not duplicated.
• Limited liability & possible tax advantages • Closely regulated
• Specialized management • Most expensive form to organize
• Ownership is transferable • Charter restrictions
• Continuous existence • Extensive record keeping necessary
• Easier to raise capital • Tax rules can be more complex
BUSINESS NAME AND BUSINESS NUMBER REGISTRATION
1) Business Name Registration
A business name must be registered under the following circumstances:

• If the business name differs from the owner’s or any words are added to their
personal name - “John Smith Shoes”
• Prior to using the name and must be renewed every five years
• To set up a business bank account you must have a registered business name
Register a Business Name using Ontario Business Connects (OBC) workstation at the
Employer Health Tax Office or by Internet: www.ccr.gov.on.ca/obcon/welcome.htm.
Fee for registering a sole proprietorship or general partnership using OBC or by Internet
is $60. To register in person or by mail (cost: $80), contact the Ministry of Consumer
and Commercial Relations. The fee to register a limited partnership, where the liability
to each partner is limited to the amount of capital contributed to the business, is $210.
To register an Ontario Corporation contact the Ministry of Consumer & Commercial

Relations, Companies Branch, Corporate Services. To register a Federal Corporation
contact Industry Canada, Corporations Directorate.
A name search is recommended to see if someone else is already using the business
name. A search can be done using OBC, in person, or by mail. Fees do apply for
conducting a search. It is recommended to search variations of the same name using
different spellings such as – “Smith’s Shoe Shop” and “Smith’s Shoe Shoppe”.
The Business Names Act does not prohibit registration of identical names, but there are
inherent risks with doing so. Sole proprietorships or partnerships may not use, in part or
in full, the words Corporation, Limited or Incorporated in their business name.
2) Registering a Business Number
Revenue Canada has developed the Federal Business Number so that only one number
is needed for several business registrations. If any of the following registrations apply to
your business, a Business Number will be required:
• Federal Sales Tax (GST) - businesses with sales over $30,000 and selling GST
taxable goods or services
• Import-Export Account Number – businesses that will import or export goods
• Revenue Canada Payroll Number – for payroll deductions when a business hires
employees
• Corporate Income Tax – businesses that are incorporated
Note: The OBC workstation can also be used to apply for Retail Sales Tax Vendor’s Permit,
Employer Health Tax, Health Tax for the self-employed, and Workers’ Compensation.

SELECTING A BUSINESS LOCATION
Selecting the right location for your business can have a significant impact on your success.
As part of the Department of Economic and Business Development, the Business Self Help
Office can assist with much of the initial work necessary to determine the best location for
your business. The Office can provide a listing of available locations in the Brantford area,
as well as professional consultation when selecting a business location (See Local Resources
section for more information).
1) Location Considerations
• Physical requirements – parking, truck access, layout, waste disposal

• Premises required – office, retail, warehouse etc.…
• Space required – now and for future expansion
• Proximity to target market
• Availability of employees and labour
• Utilities – water, gas, sewers and power supply
• Access to suppliers, transportation
• Affordability of premises – taxes, utilities, lease rates
2) Regulation and By-law Considerations
• Zoning regulations
• Property taxes
• Permits for construction, renovations or additions
• Waste disposal
3) Leasing Considerations
There are many things to consider when leasing a business location. Having a clear
understanding of all terms and conditions in the lease is very important prior to signing
(a lawyer can help you review it). A lease can be negotiated, so do not settle for any
clauses or conditions that you find unsatisfactory. In addition, consider the following
aspects of the lease and clearly state what each party will be responsible for.
• Lease terms and conditions
• Taxes, snow removal, insurance, repairs and maintenance
• Terms and timing of lease payments
• Length of the lease
• Is there the ability to sublet, or assign the lease to a third party?
• Description of lease space - furniture, fixtures and equipment
• Restrictions on leasehold improvements
• Who is responsible for payment of leasehold improvements?
• Lease termination details such as procedures, policies and penalties

LICENSING, LAND USE, AND ZONING REQUIREMENTS
1) Municipal Licenses
Businesses must comply with local license, zoning, building, signage, health, & fire
regulations. Each municipal government has the authority to issue business licenses
within its own jurisdiction. For Municipal licensing within Brantford, contact the City
of Brantford, Licensing Clerk. Outside City Boundaries contact the appropriate local
official for more information. Appendix A contains a list of businesses that require a
license in Brantford.
2) Provincial Licensing & Regulations
A partial list of businesses that require provincial licenses can be found in Appendix A,
however, you are advised to contact the Ministry of Consumer and Commercial
Relations or the Brantford Business Self Help Office for details.
3) Accommodations and Liquor Licensed Establishments
Any business providing accommodation for the general public must be licensed. If an
operator intends not to serve alcoholic beverages, contact the Ministry of Consumer and
Commercial Relations Office. If the business plans to serve alcohol, contact the
Alcohol and Gaming Commission of Ontario.
4) Home Occupation
Running a home-based business requires meeting the zoning by-laws controlling

property uses within the municipality. See the City of Brantford’s Home Occupation
By-law in Appendix B.
5) Building Permits
The following activities require prior approval. Contact the City of Brantford, Planning
& Building Services Department for information and permits for the following:
• Building construction, renovation, or demolition
• Moving into a building
• Posting an exterior sign
• Verifying a zoning designation
• Opening a home based business
• License inspections
6) Zoning Regulations
It is recommended that you check the specified present and future zoning regulations of
a property to ensure that your proposed use of the land is permitted. Contact your local
municipality for more zoning information as they may vary between municipalities.

TAXES
1) Provincial Sales Tax (PST), Vendor's Permit, Purchase Exemption Certificate
A vendor's permit is required for the collection of Ontario Retail Sales Tax (RST) on
taxable goods and services sold on a regular basis and on premiums for certain types of
insurable contracts and benefit plans. Vendor's permits are issued free of charge and can
be issued over the phone by contacting the Ministry of Finance, Tax Office.
PST is a tax based on the retail price of most goods. Businesses that sell taxable goods,
provide a taxable service, or charge admission to a place of amusement are responsible
for collecting tax and remitting PST on a regular basis.
The PST rate in Ontario is 8% on most purchases of goods and on labour charges to
install, repair and maintain taxable goods and equipment. Tax is also payable at the
same rate on all prepared food products purchased from an eating establishment where
the total charge is more than $4.
Merchandise and equipment used in a business, other than certain categories of

production machinery and materials used in manufacturing, are taxable. Certain
purchases such as food products and children's clothing are PST exempt.
2) Goods and Services Tax (GST)
Under the GST most goods and services sold or provided in Canada are taxable at a rate
of 7%. Certain items, such as basic groceries and prescription drugs are also taxable, but
at a rate of 0%. These are referred to as zero-rated goods and services. A limited
number of goods and services are GST exempt.
Every individual or business engaged in a commercial activity with annual sales and
revenues of GST - taxable goods or services over $30,000 must register. If your annual
sales do not exceed $30,000 you are not required to register. You would consider
registering if you make a large amount of purchases (i.e. equipment, car, supplies,
inventory) on which you have to pay GST. If you are not registered, you cannot claim a
refund on the GST you paid. If you choose to register, you can claim a refund,
however, you must start charging your customers GST.
To find out more about the GST, contact the Revenue Canada Excise Office nearest
you. Assistance can be provided over the phone or through a workshop.
3) Income Tax
Proprietorships & partnerships must report business profit on their personal income tax
form while corporations must file a corporate tax form. The “Business and Professional
Income Tax Guide” can help you maintain proper records for Income Tax purposes and
can be picked up at Revenue Canada, the Post Office, or the Business Self Help Office.

HIRING REGULATIONS AND SOURCE DEDUCTIONS
1) Payroll Source Deductions
All employers must collect and remit Employment Insurance premiums, Canada
Pension Plan Contributions and Income Tax on behalf of their employees. Employers
and employees also contribute to E.I. and CPP. Revenue Canada - Canada Customs
and Revenue Agency, Taxation & Source Deductions Office provides workshops and
guidebooks to assist new employers with calculations and procedures.
2) Employment Standards Act
Employment Standards Act provides for minimum terms and conditions of employment
such as hours of work, overtime, vacation pay, minimum wage, etc. Also, the
Occupational Health and Safety Act ensures employers provide minimum safety to
employees and applies to all workers and workplaces in the Province of Ontario with
few exceptions. Please contact the Ministry of Labour for more information.
3) Workplace Safety and Insurance Act
Those employers who must be covered according to the Act, are required to contribute
premiums to the insurance fund administered by the Workplace Safety & Insurance
Board (WSIB). A registration kit can be obtained from the WSIB office. Employers are
required to contact the WSIB within 10 days of hiring help. For self-employment,
coverage with WSIB is optional. It is suggested that you contact an insurance broker to
assist you with your insurance needs. If you are subcontracting to contractors who are
employing help, it is advisable to obtain a clearance certificate from each firm. If you
are hiring individuals under contract you should contact the WSIB in order to determine
their working status. Information on premiums, coverage, accident reporting
requirements and appeals procedures is also available from WSIB.
4) Employer Health Tax (EHT)
Everyone with a valid Ontario Health Card is eligible for coverage under the health care
plan administered by the Ministry of Health. The plan is funded by the EHT and is paid
by all employers with permanent establishments in Ontario, if the payroll exceeds the
tax exemption amount. As of 1999, self-employed individuals are fully exempt from the
Employer Health Tax. Special rules apply for associated and/or multiple account
employers. Contact the Employer Health Tax Office for more information.
5) Trade Certifications
Certain trades require the holding of a Certification of Qualification in order to perform

work, although voluntary certification is available for some trades. For a person with
significant experience but without certification, they may be able to provide a
journeyman’s certificate. For apprenticeship and trade certification information in Brant
County, contact Ministry of Education and Training, Workplace Support Services.
HEALTH AND SAFETY
1) Public Health Inspections
Any business engaged in the preparation or serving of food needs to comply with
Provincial Health regulations. A plan of the premises with equipment location,
washroom facilities, storage area and seating capacity is required. Inspections are
conducted regularly.
Regulations are made under the Health Protection and Promotion Act available at the
Ontario Government Bookstore (1-800-668-9938). The Director of Environmental
Health and Inspection Services at the Brant County Health Unit undertakes all
inspections.
2) Other Public Inspections
Public inspections are required for a number of businesses. If in doubt, contact the Brant
County Health Unit. Here is a partial list:
• Recreational facilities
• Funeral homes
• Golf courses
• Day nurseries
• Seniors’ centres
• Nursing homes
• Retirement facilities
• Lodging houses
• Tattoo parlours
3) Tobacco Vendors and Smoking:
All establishments where tobacco is sold must comply with the Provincial Tobacco
Control Act. Specific age restriction and age identification signs must be posted
wherever tobacco is sold or displayed. The sale or supply of tobacco to anyone who is
less than 19 years old is prohibited.
The City of Brantford Clean Air By-law (Chapter 570) restricts and prohibits smoking in
various public places in Brantford. This By-law has progressive stages of
implementation. Currently a restaurant is required to have at least 70% of the floor area
designated as non-smoking and by June 1, 2002, a restaurant will be required to be
smoke-free, unless certain construction, ventilation and location requirements are met.
For more information contact the Brant County Health Unit.

GUIDE TO
WRITING A BUSINESS
PLAN
Business Profile
Market Analysis
Customers
Competition and Suppliers
Price and Costs
Marketing and Promotions
Management and Operations
Financial Plan
Writing A Business Plan 26
WHAT IS A BUSINESS PLAN?
The Business Plan is a statement in words and numbers that explains what you want to do
and how you will accomplish your objectives. It is a written report of the company’s
finances, management, employees, products, and marketing strategy. The Business Plan is
an essential planning and tracking tool for both new and existing businesses. While the
Business Plan can be used to obtain the financing you need, it is also an important step to
improving your chance of success.
Acting as a basic road map, a Business Plan is essential for:
! Starting a new business

! Purchasing an existing business (or franchise)
! Planning for the future
! Planning for expansion
! Restructuring or overcoming obstacles
A Business Plan should clearly state:
! Who you are, What you do, and How you do it

! Where you want to go with your business
! How you are going to get there
! What resources are needed to achieve your goals
! When you intend to see results
! Why you are presenting the business plan to the reader
A Business Plan allows you to assess the following about your business:
! Is there a need for your product or service in the marketplace?

! Are people willing to pay for your product or service?
! Will the business be profitable enough to satisfy your needs?
! What type of financing will be needed to get your business off the ground?
! What obstacles exist that may affect the success of your business?
Here is a list of just some of the reasons why a Business Plan is an essential business tool:
! To determine whether the business is feasible and/or potentially profitable

! Helps set objectives that can be measured or are obtainable
! Necessary to get the financing you may need
! Maintain sight of your direction, objectives and goals rather than straying from the
actual plan
! Allows you to make your start-up decisions and day-to-day operating decisions
! Prevents wasting time, energy and money
The Entrepreneur's Guide to Small Business In Brant County

SECTIONS OF A BUSINESS PLAN
The length of a Business Plan will be dependent upon the business, however, a
comprehensive plan will be required to obtain any type of financing. Use the space
provided to help write out your Business Plan. A final checklist at the end of the section can
be used to make sure everything has been covered before putting your Business Plan into a
complete, easy to follow report.
COVER SHEET
A cover sheet should include the name of business, name of principals, address telephone
number of business, and other contact information.
Business Name:
Business Address:
City/Province:
Phone:
Fax:
Email:
EXECUTIVE SUMMARY
The purpose of an Executive Summary is to provide a brief overview of your business. As a

summary of the business, it should be written last but appear first in the Business plan.
Make sure the Executive Summary highlights the following about the business:
! Type of Business and industry ! Assessment of competition

! Objective of the business ! Members and experience of the
! Form of business structure Management team
! Products and services offered ! Projected financial information
! Key product or service features ! Funds invested and required

BUSINESS PROFILE
Questions to Answer:
1) How do I set up my business?
1) What advisors will I need?
2) What are my business objectives?
1) Structures - There are three basic business structures:

! Sole proprietor – owned by one person
! Partnership – two or more people have ownership in the business
! Corporation – is a distinct legal entity that gives owners limited liability
Factors to Consider when choosing a business structure:

! Taxes: can be a very complex topic and should be discussed with an accountant
! Risk of loss: sole proprietorships or partnerships are not legally separate from owner.
Personal assets are at risk if business assets are not sufficient to cover your business
debts. Incorporation generally limits loss to your investment in the corporation.
Structure:
2) Business Advisors - list of recommended advisors for starting and running a business.
! Lawyer ! Banker
! Accountant ! Insurance Agent
Reasons for selecting trusted advisors:

! Get sound business advice
! Help you avoid costly mistakes
! Keeping advisors up to date allows them to help you get where you want to go
Advisors:
3) Business Objectives - Knowing the purpose and objectives of your business is important
in determining where you will fit in the marketplace and who your intended market will
be. Business objectives should include what your business will do and what products or
services will be provided.
Objectives:

MARKET ANALYSIS
Questions to Answer:
1) How will I be gathering information about my business?
2) What is the size and characteristics of the market?
1) Gathering Information
Market Research
! Talk to suppliers, other entrepreneurs, the competition, and potential customers
! Read trade magazines, Industry Association literature, phone books and other industry
directories
! Use statistics and literature prepared by organizations including Ministry of
Economic Development, Industry Canada, Statistics Canada, and HRDC
Market Surveys - To determine if there is a need for your product or service, get first
hand information from your potential customers or competition by conducting a survey.
Local Resources - The Local Resources section contains a listing of free resource areas
that you can use to research your business idea. They can provide published material,
how to books & videos, computers & Internet access, and other statistical data.
2) Analyzing the Information
Market Size and Trends

! Overall size of market i.e. area, population, industry revenues
! Demographics and Psychographics of customers, competition, etc.
! What areas do you intend to target? Local, regional, national, international.
! Average customer expenditure on your product or service?
! Trends, seasonality, buying cycle, growing or declining market?
! Where do you intend to sell your product or service?
Market Share
! Overall scope of market: revenue and demand
! Your realistic share of the market
! Estimated Annual Sales (estimated total market value X your % of market)
Note: analyzing market share may require conducting your competition analysis first

CUSTOMERS
Questions To Answer:
1) What research have I done?
2) What are my potential customers like?
3) How do I market to my customers?
1) Market Research: Research is the only way to find out what your potential customers
are like. Research may include door-to-door, telephone or mail surveys, discussions
with suppliers or competitors, or statistical data. What market research have you
conducted?
2) Customer Profile
! Who they are ! What are the needs of your customer
! Why they would buy your product ! How you can fulfil those needs
! What is important to them ! How to get them to buy from you
! How large is the customer base ! What they buy
! How to reach your target customer ! Frequency of purchases
Geographics: Location or areas

Demographics: A) Individual: Age, Gender, Income, Education, Occupation
B) Business: Location, size, product/service, # of employees, trends
Psychographics: Lifestyle, values, interests, preferences, motivations, buying habits
3) Marketing to Your Customer: One key to success is understanding what your

customers want. How do you get them to buy from you? What form of advertising
would be most effective for your business?

COMPETITION AND SUPPLIERS
1) How do I evaluate my competition?
2) How can I use this information to my advantage?
3) Who are my potential suppliers?
1) Evaluating your Competition: Compile a list of all direct and indirect competitors. Select
up to ten direct competitors and learn more about them.
! product and services ! customer service ! target customers

! location, size ! estimated sales ! strengths/weakness
! price ! number of employees ! brand names
2) Analyzing your Competition: Completing a Competitive Analysis with the information

just learned will help you identify how to create or what competitive advantage you have.
A SWOT Analysis is a tool used to assess Strengths, Weakness, Opportunities, Threats.
3) Locating Suppliers: Identify and analyze potential suppliers to determine who will be
right for your business. Some sources to help locate suppliers are:
! Yellow Pages, Trade associations, or the Directory of Associations

! Trade Shows – Annual Directory of Shows and Exhibits or International Trade Fairs
and Conferences
! External Affairs Canada, US Trade and Tourism Development Division
! Directories: Chamber of Commerce, Frasers’, Scott's, Vernon’s, City’s Industrial
Directories, Business Opportunities Sourcing System, Strategis, COBSC

PRICE AND COSTS
1) What does it cost to offer my product/service?
2) What do I plan to charge for my product/service?
3) If and when will I make money?
1) Costs: Whether you manufacture or sell a product or service you have three major costs:
material, labour, and overhead. Provide a complete breakdown of costs.
2) Pricing: What price will you be charging for your product or service? Factors to
consider:
! Your Costs - Material, labour and overhead to break even, plus a return on
investment
! Competitors’ Price - Influences your pricing but you do not have to charge less
! Customers’ Demand - You must have an awareness of the product or service
demand and your customers’ sensitivity to price
! Other Factors - Hours of operation, location, service, quality, image and reputation
3) Price vs. Cost: You are now able to calculate whether the business can be profitable.
Calculate the following ratios (explanation of ratios can be found in Summary of Terms)
GROSS PROFIT MARGIN (GPM) = {Sales – Cost of Sales}/ Sales
MARKUP = Cost / (1-GPM)
BREAKEVEN (Units) = Annual fixed costs/(unit selling price - unit variable costs)
BREAKEVEN (Dollars) = # units to breakeven X selling price per unit
INVENTORY TURNOVER = The amount on hand divided by the amount of

inventory sold annually. Inventory turnover should be within industry standards.

MARKETING AND PROMOTIONS
1) How will I create a business image?
2) How will I attract customers and build awareness?
3) What marketing strategy will I use to attract customers?
1) Marketing Material: To create a well recognized business image, colour scheme,

typeface, and layout of all business material should be consistent. Your business image
can be presented through a logo, letterhead, business cards, flyers, brochures, printed
materials and web-site. What Marketing Material will you be using?
2) Advertising: When choosing to advertise you must consider how often to advertise to be
effective and budget how much you plan to spend. What advertising will you be doing
and how much will it cost?
3) Marketing Strategy (use the 4 P’s of Marketing)
PRODUCT - Customers do not buy products, they buy the benefits and features they
receive from a product.
PRICE - Is your product "price sensitive" meaning the higher it is the more likely your
customer will go elsewhere, or does higher price mean a perceived higher value?
PLACE (location) and Distribution - How will you distribute your product or service?
Identify what benefits your location offers customers and suppliers and describe your
location in terms of traffic, visibility, hours of operation, sq. footage, bought vs. leased etc.
PROMOTION – What promotion will you use: Referrals, Joining Associations,

Sponsorship, Volunteering, Networking, Press Releases, Public Speaking, or Trade
Shows/Conventions?

MANAGEMENT AND OPERATIONS
1) What are the major business decisions or hurdles that I will face?
2) What do I need to know about the management team?
3) What do I need to know about the employees?
4) What legal issues will I face?
1) Business: What is the overall cost of running your business? Identify the major
opportunities or obstacles facing the company at this time and how the company will be
facing them. Determine the seasonal factors that could affect the operation of your
business.
2) Management: Describe your role in the company as Manager. What is the vision that
management has developed for the business? List short-term and long-term goals.
3) Employees: Identify key employees and the professional services that you will need to
employ to assist the business from time to time. Calculate the number of employees your
business currently employs and what you will need in the future. What skills/positions are
or will be required? Identify whether training will be provided and how much it will cost.
4) Legal Issues: What licenses, patents, government regulations, inspections, and insurance
will affect your business? Research any government regulations, changes in the economy,
changes in trends that may affect the business or industry now and in the near future.

FINANCIAL PLAN
1) What financial statements do I need for external users?
2) What financial statements do I need for internal users?
3) How can these financial statements help me make decisions?
4) How will I finance my business?
*Use the attached sheets at the end of this section (p. 51-53) to complete your financial
statements. An explanation of financial terms is provided.
1) External Financial Statements are prepared for external users such as your creditors,
bankers, and shareholders. They generally include:
! Review Engagement Report to Shareholders/Proprietors/Partners
! Balance Sheet
! Statement of Income and Retained Earnings
! Statement of Changes in Financial Position
2) Internal Financial Statements help make key decisions and therefore management will
regularly require up-to-date financial data and reports such as:
! Cashflow ! Inventory levels

! Accounts Receivable ! Production Schedules
! Accounts Payable ! Assets Management
! Payroll
3) Internally accurate records help answer the following questions:
! How can we plan for the company’s growth or declines in business?

! How quickly can we expand if business is better than expected?
! Which customers buy more and more often than others do?
! What is the cost to operate our business monthly?
! Are we prepared for seasonal fluctuations in cash flow?
! What expenses are increasing or decreasing?
4) Types of Financing - There are two main type of financing that a business will use:
1) Debt financing: 2) Equity financing:

! Long-term debt ! Share Capital
! Demand loans ! Retained earnings
! Line of credit and credit cards ! Owners Investment
! Leasing
Lenders often require collateral to secure the loan. Financial institutions will also check
your credit rating and the credit capacity of your business.

BUSINESS PLAN CHECKLIST
The checklist helps you to keep track of the information collected and allows you to
organize it into an easy to follow report. The length of the plan will be dependent on your
business and the purpose of the plan.
COVER PAGE
Does your title page include the following information?
! Business Name ! Who it was prepared by

! Business Address ! Date of Business Plan
! Phone Numbers
TABLE OF CONTENTS
Does your Table of Contents include the following?
! List of each section in Business Plan ! Page numbers of each section
EXECUTIVE SUMMARY
Have you completed an Executive Summary?
! Yes, my Executive Summary provides a quick and concise overview of the business
! My Executive Summary highlights key points from the following:
! The opportunity available ! Marketing and promotion

! Description of business and industry ! Business structure and management
! Product or service offered ! Financial requirements
BUSINESS PROFILE
Does your Business Profile contain the following information?
! Business name and owners ! Structure of business:

! Business address/phone/fax ! Sole proprietorship
! Business plan prepared by ! Partnership (plus % of ownership)
! Home address/phone ! Corporation
! Status of business ! Products or services offered
! Existing ! Number of employees
! Starting a new business ! Business advisors
! Purchasing business ! Objectives of the business
BUSINESS PROFILE Continued
If a Partnership or Corporation, has an agreement been prepared and signed?
! Yes ! No
What is the classification of your business?
! Retail ! Food ! Tourism ! Manufacturing ! Service

! Construction ! Wholesale/Distribution ! Other (specify)
MARKET ANALYSIS
Have you explained in detail what market research you conducted (primary and secondary)
and included a copy of any survey or questionnaires you conducted?
! Yes ! No
What sources of secondary information were used to investigate your business opportunity?
! Trade magazines ! Library

! Government literature/reports ! Industry Canada
! Statistics Canada ! Ministry of Economic Development
! Internet ! Human Resources Development Canada
! Newspapers ! Other
What sources of primary information were used to investigate your business opportunity?
! Questionnaire ! Focus groups

! Surveys ! Other
Have you included the following industry characteristics on the particular market that you
will be in?
! Industry sales or revenue ($ and Units ! Trends, seasonality factors, consumer

sold) buying cycle
! Overall size of market (area, population) ! Growing, level or declining market
! Name and number of competitors ! Key success factors in industry
Have you identified your target market and calculated what realistic share of the market you
can expect to obtain?
! Yes ! No

CUSTOMERS
What Characteristics have you profiled about your target customer?
INDIVIDUALS:
! Where they are located ! Occupation
! Age Range ! What they buy
! Gender ! Value and frequency of purchases
! Income ! Buying habits
! Education ! Lifestyle, motivations, interests
BUSINESSES:
! Location ! Number of employees
! Number of businesses ! Industry trends
! Size ! Key decision makers
! Product/service ! Average sales/purchases
What factors are most important to your customers when they are deciding to buy?
! Appearance ! Availability
! Quality ! Packaging
! Price ! Size
! Customer service ! Credit terms
! Durability ! Easy to use
! Reputation ! Other
What are the unique features of your product or services and why does it appeal to your
customers over the competition?
! High customer service ! Hours of operation

! Solid reputation ! More attractive pricing
! Superior quality ! Others
! Exceptional delivery
If you are a new company or expanding your company’s existing products or services, have
you developed a list of primary potential customers?
! Yes ! No
How do you plan on having a customer pay for you product or service?
! Visa/debit merchant card system ! Credit

! Cash or cheque
If you plan to provide credit, have you developed payment terms such as a deposit required
or when balance is due?
! Yes ! No
COMPETITION AND SUPPLIERS
Have you completed a Competitive Analysis that includes the following information?
! Company name & location ! Strength/weakness

! # of employees & years in business ! Marketing strategy
! Annual sales ! Products/services
Have you been able to identify the following in your industry/market?
! Opportunities and threats to business ! How to expand your market share

! your competitive advantage ! Strengths and weaknesses
Have you included the following information about your potential suppliers?
! Name, location, years in business ! Credit terms offered

! Products offered ! How long you have dealt with them
PRICE AND COST
Have you determined what it costs to offer your product or service to your customers?
! Materials cost ! Overhead cost

! Labour cost ! Inventory cost
Have you factored the following costs into your start-up pricing?
! Warranties ! Insurance
! Servicing ! Start-up cost
Have you calculated a price to charge customers for your product or service?
! Cost to produce ! Mark-up on costs or profit margin
How does your price and mark-up/profit margin compare to industry rates?
! Higher ! Lower
! The same
Have you calculated what level of sales you will need to reach to cover your costs?
! Yes (units and dollars) ! No
Have you considered how your inventory will be handled?
! Average Inventory Level ! Inventory turnover

MARKETING AND PROMOTIONS
Have you calculated how much advertising will cost and have you budgeted for this?
! Yes ! No
Which of the following tools do you intend to use in your promotional strategy?
! Advertising ! Event sponsorship

! Direct selling ! Newspaper articles
! Personal selling ! Donations
! Direct mail ! Other
What methods of advertising and promotions will you use to generate more awareness?
! Referrals ! Networking
! Joining associations ! Press releases
! Sponsorship ! Public speaking
! Volunteering ! Trade shows/conventions
Have you considered the following when selecting a location for your business?
! Benefits to customer ! Terms of the lease (if renting)

! Costs involved ! Parking availability
! Government restrictions and By-laws ! Years it will satisfy your needs
! Traffic flow ! Location of suppliers
! Facility requirements
How will you inform customers about your product or service? What form of advertising
will be most effective?
! Business cards ! Billboards

! Radio ! Magazines
! Newspaper ! Catalogues
! Brochures ! Signs
! Television ! Web-site
! Yellow pages ! Other
If you will be running a Home Based Business, have you considered the following factors?
! Privacy with minimal distractions ! Zoning By-laws or sign restrictions

! Hours of operation ! Customer convenience
! Designated business phone & fax ! Room for expansion
! Answering service ! Looks professional for customer visits

MANAGEMENT AND OPERATIONS
Have you determined what hiring requirements you will have? (At Start-up, Year 3, Year 5).
! part-time ! full-time
Is the business insured for contents and liability and have you included the name of the
Insurance Company and details of the policy?
! Yes ! No
Have you investigated which of the following will affect your business and how you will
handle them?
! Patents ! Copyrights
! Trademarks ! Government regulations
! Licenses ! Contractual agreements
! Permits
Have you answered the following questions about your business?
Business:
! Overall cost of running your business ! Seasonal factors impacting operations

! Opportunities/obstacles facing company ! Business strengths and weaknesses
Management:
! short-term and long-term goals ! Your role in the company as manager
Employees:
! Who are the key employees ! Training provided and costs involved
! Professional services to be employed ! Job descriptions and procedure manual
! Skills and experience employees will need
Legal Issues and Taxes:
! Inspections ! GST/PST
! Patents ! Employee source deductions
! Trademarks ! Income tax
! Insurance ! Employer health tax
! Name registration ! Worker’s compensation
! Incorporation ! Zoning By-laws
! Licensing ! Industry specific regulations
! Permits ! Other

MANAGEMENT AND OPERATIONS Continued
Have you determined what physical requirement your business needs in order to open?
! Description of facility ! Leasehold improvements

! Furniture, fixtures, equipment ! Operating procedures
! Layout, and design
Of the furniture, fixtures and equipment needed, have costs been determined and how will
they be obtained?
! Purchased ! Leased
Have you identified what skills will be required to operate your business and who will
provide them?
! Yes ! No
FINANCIAL PLAN
Have you itemized major expenditures and calculated the following?
! Items and costs involved ! Amount of loan needed

! Total start-up cost ! Other sources of funding
! Source of cash contribution
Have you completed the following financial statements? (Use the attached statements at the
end of this section).
! Projected cash flow statement ! Projected balance sheet

! Projected income statement ! Personal financial statement
Have you determined how each of the following will be handled in your company?
! Record-keeping or accounting system

! Customer accounts receivable
! Vendors accounts payable
! Taxes

LIST OF KEY FINANCIAL TERMS
CASH FLOW FORECAST

1. Estimated Sales: The product/service you expect to sell in dollar amount.
2. Cash Receipts: Money you get from various sources.
3. Cash from Sales: Money received from selling your product/service. If you provide credit, then
money to be collected depends on collection policy.
4. Other (specify): Money from sources not specifically identified on the cash flow forecast (e.g.
interest received from cash in bank account).
5. Cash Equity Contribution: Money owner invests in business.
6. Cash Disbursements: Money you pay out.
7. Purchase of Equipment: Money you spend for equipment/premises, or rental.
8. Labour Expenses: Money you pay your employees in form of wages and benefits.
9. Personal Drawings: Money you pay yourself to cover personal expenses.
10. Materials: Money you pay for items to be used in the making of your product/service.
11. Licenses and Insurance: Money you pay for required licenses and insurance premiums.
12. Advertising: Money you pay for advertising your product/service.
13. Selling Expenses: Money you pay for the selling of your product/service.
14. Office Expenses: Money you pay for office help and office supplies.
15. Other (specify): Money you pay for expenses not specifically identified, i.e. charitable donations.
16. Loan Repayment: Money you repay the financial institution for its loan.
17. Monthly Surplus: The monthly cash receipts are greater than the months cash disbursements.
18. Monthly Deficit: The month’s cash receipts are less than the month’s cash disbursements.
19. Cumulative (to date): Total of each and every month’s surplus and/or deficit.
PROJECTED INCOME STATEMENT

20. Cost of Goods/Services Sold: Direct costs incurred in the making of your product/service.
21. Gross Profit: Difference between sales in dollars and cost of goods/services sold.
22. General Expenses: Common expenses of doing business such as rent, hydro, advertising, insurance.
23. Interest Expense: Amount to be paid for use of borrowed money (loan).
24. Operating Profit: Profit figure before provision for owner’s drawings and taxes.
25. Taxes Payable: Identifying tax owing to reach net income figure.
26. Net Income: True profit from sales after making provision for all expenses.

PROJECTED CASHFLOW STATEMENT

Cashflow Worksheet
MONTH Start-up 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
PROJECTED SALES
CASH IN:
1) Cash sales 1–30 days
2) Receivables 31–60 days
3) Receivables 61-90 days
4) CASH IN FROM SALES (1+2+3)
5) Owner's Equity (cash)
6) Loan I
7) Loan 2
8) Opening Cash Bank Balance
9) TOTAL CASH IN (4+5+6+7+8)
CASH OUT:
DIRECT EXPENSES
(a) Materials (COD)
(b) Supplies (COD)
Labour
Employee benefits/tax 10%
10) TOTAL DIRECT EXPENSES
FIXED (INDIRECT) EXPENSES
Advertising/Promotional
Business Insurance, Licenses
Management or Owner Wage
Office Administration Wages
Office Supplies
Professional fees
Property Tax
Rent & maintenance
Telephone, Pager, Cell
Utilities
Vehicle Expenses
Bank Chgs & Merchant card fee
Equipment Leases
Loan Payment 1
Loan Payment 2
Equipment purchases
Other:
Other:
11) TOTAL FIXED EXPENSES
12) TOTAL CASH OUT (10+11)
13) CASH Surplus/(Deficit) (9-12)
CUMULATIVE TOTAL

PROJECTED INCOME STATEMENT

Business Name
Projected Income Statement
For the Period Ending
First Second Third Fourth Total Year 2 Year 3 Year 5
Quarter Quarter Quarter Quarter Year 1
SALES
Less:
Cost of goods/services sold (Direct Expenses)
GROSS PROFIT
Less:
Selling Expenses
Office Expenses
General Expenses
Interest Expenses
OPERATING PROFIT
Less:
*Taxes Payable
or
*Owner(s) Drawing
NET INCOME
Note: Taxes payable if a corporation. Owner(s) Drawing is money taken out of business by owners if Proprietorship or Partnership

PROJECTED BALANCE SHEET
Business Name
Opening Balance Sheet
As of (Date)
ASSETS
Current Assets
Cash
Accounts Receivable
Inventory
Other
Total Current Assets
Fixed Assets
Building
Furniture and Fixtures
Equipment
Trucks and Vehicles
Other
Total Fixed Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities (less than 12 months)
Accounts Payable
Bank Loans/Other Loans
Taxes Owed
Total Current Liabilities
Long-Term Liabilities
Mortgages Payable
Loans from Partners/shareholders
Other
Total Fixed Liabilities
TOTAL LIABILITIES
NET WORTH (CAPITAL)

Total Net Worth (Assets Minus Liabilities)
Total Liabilities plus Net Worth

Appendices 48
APPENDIX A- LICENSING FOR BUSINESSES
MUNICIPAL LICENSES: The following businesses require a license within the City of
Brantford:
• Ice cream vending vehicles • Arcades

• Refreshment (hot dog) carts • Public halls
• Chip huts • Lodging house, rooming house,
• Peddlers Boarding
• Food premises • Electricians
• Storage of gasoline, diesel fuel oil, • Plumbers
and other fuels • Fireworks-temporary vendors
• Pawnbrokers • Merchandise display carts
• Special sales • Adult entertainment parlours
• Transient traders license
• Window and door installers • Roofers
• Chimney installation and repair • Framers
• Heating/air conditioning installers • Siding installers
• Driveway installers, pavers &
sealers
PROVINCIAL LICENSES: the following is a partial list of businesses that require a

Provincial License. Contact the Ministry of Consumer and Commercial Relations for more
information.
• Itinerant seller • Upholsterers/stuffed articles

• Trades people • Gas stations
• Collection agencies • Horse riding establishments
• Employment agencies • Garden centres
• Motor vehicle dealers • Private investigators
• Travel agencies • Trucks for hire
• Video retailers • Welders

Appendices 49
APPENDIX B – HOME OCCUPATION BY-LAW
HOME OCCUPATION
BYLAW NO. 160-90 (SECTION 6.17)
A Home Occupation shall be permitted in all Residential Zones, subject to the following regulation:
6.17.1 A home occupation shall be conducted entirely within a dwelling unit by the occupant of the
said dwelling unit, who may employ or be assisted by no more than one other person.
6.17.2 A home occupation shall not occupy more that 25% of the gross floor area of the dwelling unit
including any basement area as habitable living space, or 28.0 m2 (301ft2), whichever is the
lesser.
6.17.3 A home occupation shall not create or become a nuisance.
6.17.4 A home occupation shall clearly be secondary to the residential use of the dwelling unit.
6.17.5 It shall not be apparent from the exterior of the premises that such use is conducted therein
other than a sign not exceeding 0.15m x 0.46 (5.9” x 18.1”).
6.17.6 One parking space additional to the parking space or spaces required for the residential use
shall be provided on-site and may include a tandem parking space, or a parking space located
in an existing driveway.
6.17.7 No goods, wares, or merchandise shall be offered or displayed for sale on the premises.
6.17.8 The dwelling unit in which the home occupation is located shall be the principal residence, as
defined by the Income Tax Act, of the occupant of the said dwelling.

Appendices 50
APPENDIX C – USEFUL SMALL BUSINESS WEB-SITES
RESOURCE INTERNET ADDRESS
Brantford Business Self Help Office - http://www.city.brantford.on.ca

Economic and Business Development Services
Brantford HRCC http://www.on.hrdc-drhc.gc.ca/brantford
Brantford Regional Chamber of Commerce http://www.chamber.mainpage.net
Business Development Bank of Canada http://www.bdc.ca
Canada One Magazine http://www.canadaone.com
Canada Ontario Business Service Call Centre http://info.ic.gc.ca/cbsc/english/ontario
CanadExport http://www.dfait-
maeci.gc.ca/english/news/newsletr/canex
City of Brantford http://www.city.brantford.on.ca
CIBC Small Business Information Exchange http://www.cibc.com/english/business_servi
ces/small_business/index.html
Department of Foreign Affairs and http://www.dfait-maeci.gc.ca
International Trade
Enterprise Brant http://www.enterprisebrant.com
Export Development Corporation http://www.edc.ca
Export Source http://www.exportsource.gc.ca
Financial Post – On-line http://www.canoe.ca/fp/home.html
Globe & Mail – Report on Business http://www.globeandmail.ca
Human Resources Development Canada http://www.hrdc-drhc.gc.ca.
Independent Business Canada http://www.inbusiness.com
Industrial Research Assistance Program http://www.nrc.ca
Industry Canada’s Site - Strategis http://www.strategis.ic.gc.ca
InfoExport http://www.infoexport.gc.ca
Ministry of Consumer and Commercial http://www.ccr.gov.on.ca
Relations
Ministry of Economic Development & Trade – http://www.ontario-canada.com
Ontario
Ministry of Labour www.gov.on.ca/lab/main.htm
Mohawk College Continuing Education & http://www.mohawkc.on.ca
Business Development
On-line Publication: Govt. of Canada Services http://strategis.ic.gc.ca/sc_mangb/engdoc/s
for Small Business 96/97 meguide.html
Ontario-Exports Inc. http://www.ontario-canada.com/export
Revenue Canada - Canada Customs and http://www.ccra-adrc.gc.ca
Revenue Agency
Royal Bank of Canada http://www.royalbank.com
Statistics Canada http://www.statcan.ca
Small Business Canada http://www.microsoft.com/canada/smallbiz
Trade Show Central http://www.tscentral.com

Glossary of Terms 51
GLOSSARY OF TERMS
Accounts Payable
Money owed (liability) by the business to suppliers, vendors, and government, or liabilities to
creditors usually for purchases of goods or services
Accounts Receivable
Money owed to the business by customers (asset), or claims against debtors from the sale of
goods or services.
Amortization
The periodic scheduled repayment of a loan.
Balance Sheet
A business document reflecting what a business owns and owes at a particular date in time.
The assets always equal the liabilities plus the owner’s equity. Assets include Cash,
Inventory, Accounts Receivable and Fixed Assets. Liabilities include short-term and long-
term liabilities. Equity is the investments and retained earnings of the company.
Break-even Point
The level of sales expressed in units required to recover fixed costs associated with the
production of the unit. Dollar break-even is expressed by multiplying the unit break-even by
the product or service price.
Business Plan
A statement in words and numbers of the goals of a business and how/when the owners
propose to reach these goals. The business plan should also include a statement of the history
of the business and of its owners.
Buy-Sell Agreement
An agreement, usually between business partners or shareholders as to be the method and
procedures to be utilized in the event the interest or shareholding of one is to be acquired by
another.
Capital
Funds or accumulated assets that are available to be invested into a business.
Cash Equity Contribution

Funds invested by owner into business.
Cash Flow Forecast or Projection

An estimate of when and how much money will be received and paid out of the business.
Usually month by month for a period of one or two years. It helps to time expenditures in
order to avoid cash shortages.

Collateral
Property (real, personal or otherwise) pledged as security for a loan. Also any supplementary
promise of payment such as a guarantee.
Competitive Advantage
An advantage a company gains over competitors by offering consumers greater value through
lower prices, or more benefits that justify higher prices.
Competitive Analysis
The process of identifying key competitors; assessing their objectives, strategies, strengths &
weaknesses, and reaction patterns. Selecting which competitors to attack or avoid.
Competition
Businesses selling to the same target market as your business or a market condition where a
number of similar sellers are trying to sell to the same buyers.
Conditions
The limits written into an agreement between a borrower and lender. The limits specify
exactly what each party is expected to do in exchange for the benefits each will receive.
Corporation
An entity formed and authorized by a state charter to act as an individual, with the right of
succession. Shareholders of the corporation represent ownership and have legal liability for
damages and debt only up to the limit of the stockholders’ investment.
Current Assets
Those assets of a company that are ordinarily realizable within one year or within the normal
operating cycle.
Current liabilities
Those amounts payable within one year or within the normal operating cycle.
Debt
Money that is owed, or an obligation to pay back funds that are borrowed. Being in “debt” is
now often a necessary, and sometimes useful, way of doing business.
Debt / Equity ratio

A comparison of debt and equity used to measure the financial health of a business.
Demographics
The study of definable characteristics of a population, including gender, religion, race,
health, income, age, education and homeownership.
Depreciation
An assets decline in value from use, wear, or passing of time. Also, the amount that taxable
income can be reduced by to reflect the declining value of an asset.

Direct Competition
Competitors who offer the same or similar products or services to the same buying market.
Direct Expenses
Funds paid for materials and labour used in making a product or service. Also called Cost
of Goods Sold.
Entrepreneur
A person who starts and manages a business.
Equity
The value of a business after all debts and other claims are settled. Also the amount of cash a
business owner invests in a business and the difference between the price for which a property
could be sold and the total debts registered against it.
Executive Summary
A one to two page summary that highlights the essential details of your business plan.
Includes a brief description of the ownership and management, products and services offered,
financial objectives including projected annual sales and net income, marketing strategy,
competitive advantage, major initiative accomplishments, goals and the amount of money
you expect to borrow.
Fixed Assets
Assets like machinery, land, buildings or property used in operating a business that will not be
consumed or converted into cash during the current accounting period.
Fixed Expenses
Costs that do not change with volume such as rent, insurance, utilities, etc.
Franchise
The right to sell products or services under a corporate name or trademark (established by
someone else). The right is usually purchased for cash in addition to a royalty fee or a
percentage of all sales.
Franchisee
The person, company or partnership who purchase the right to operate under a franchise.
Franchisor
The owner of the franchise who sells licenses to those who wish to operate under the
corporate name.
Gross Profit
The difference between the sales generated and the costs paid out for goods. Gross Profit
Margin is usually expressed as a percentage.

Income Statement
Also known as the Profit & Loss Statement (P&L) or Operating Statement, it is a calculation
of a company’s pre-tax profits by subtracting total expenses from total revenues.
Indirect Competition
Competitors that do not offer similar products to your own but offer products that act as
substitutes for your product.
Indirect Expenses
Funds paid for rent, utilities, advertising, etc. Also known as overhead.
Industry Ratio
Standards or averages that similar businesses have in a particular industry. The ratios are
used to provide important guidelines for a business.
Initial Costs
Also called Start-up costs and are those expenses which are normally one-time events such
as renovations, equipment, and first purchase of inventory.
Intangible Assets
Assets of value to the enterprise, which may produce income but which do not have
physical characteristics and a readily determinable value. (Examples: goodwill, patents,
trademarks)
Interest
A charge for the use of money supplied by a lender.
Inventory
Stock on hand in the form of goods ready for sale. Also includes raw material in the process
of being manufactured or completed for sale.
Inventory Turnover
The amount of inventory on hand divided by the amount of inventory sold annually will
show the turnover. Most industries have operational inventory turnover standards.
Lease
An agreement to rent for a period of time at an agreed price.
Line of Credit
An agreement negotiated between a borrower and lender establishing the maximum amount
of money against which a borrower may draw.
Long Term Liabilities

Money that you owe over a period longer than 12 months, such as mortgages, bank loans and
other obligations.

Limited Partnership
Some owners in a legal partnership are held responsible only up to the amount invested under
a limited partnership. This allows some partners to invest money into a business without
having direct involvement in the operation of the business, and therefore not responsible for
debts of their partners beyond their own investment.
Margin Condition
The formula agreed to between the customer and the bank, which determines the amount of
borrowing, permitted under a line of credit. Example 70% of A/R less than 60 days.
Mission Statement
One or two sentences stating the objectives of a business.
Market Share
The portion of the target market that a company is able to sell their product or service.
Marketing
How a company informs the target market about their business, or activities conducted to sell
a product or service.
Mark up
An amount added to the cost of an item to determine a selling price.
Net Income
Profit or loss after including owner draw and loan payments.
Operating Loan
A loan intended for short-term financing supplying cash low support or to cover day-to-day
and other obligations.
Overhead Costs
Those costs, which occur regardless of how many products or services sold (i.e. rent,
utilities, advertising, etc.).
Partnership
A legal association of two or more persons who share in the risks of financing and managing a
business and in its profits.
Personal Financial Statement

Assesses a person's financial strength. Helps to determine how much income is needed, how
much capital can be invested and what support can be added to the business.
Personal Guarantee
A personal promise made by an individual to repay a debt if the borrower/company fails to
repay as agreed.

Postponed Funds
Loans to a company usually from a shareholder, which are formally assigned to the bank and
not to be repaid by the company to the shareholder or other until the bad debt is retired.
Primary Research
Information gathered directly from the original source, such as data from a customer survey.
Product positioning
An effort to influence the way a product is perceived by consumers through advertising,
promotions, and selling techniques.
Psychographics
A market segmentation strategy by which consumers are grouped according to their
behaviour patterns and lifestyles, as indicated by responses to questionnaires.
Ratio
Comparison of two figures used to evaluate business performance. One measure of health
of a business is to compare to similar businesses. Key ratios are debt/equity ratio and return
on investment
"Current Ratio – computed by dividing total current assets by total current liabilities.
"Debt to Equity – a comparison of debt and equity used to measure the financial health of
a business.
Total liabilities (less postponed funds)
Equity (plus postponed funds)
"Inventory Turnover Ratio – a turnover ratio dividing sales by inventory giving an
approximation of the number of times per year that a firm sells the equivalent of a
complete inventory
"Quick Ratio – a ratio computed by dividing quick assets by current liabilities. This ratio
indicates the coverage of current assets, which are readily convertible into cash, over the
current liabilities
"Return on Equity (ROE) calculates the return received by shareholders on their equity in
the business Net Profit divided by Equity X 100%
" Return on Investment – The profit resulting from an investment. Usually expressed as a
percentage which compares net profit or dividend received with the original initial amount
invested in business
Reporting
Information you have agreed to supply to the bank or other party from time to time. This
information could be in the form of receivable or inventory listings, profit and loss statements,
balance sheet lists of aged accounts payable and receivable.
Retail
Considered retail when selling a product directly to the end consumer (usually in small
quantities).

Retained Earnings
All the profits or losses that have accumulated from prior years and from this year’s income
statement, less dividends paid to you.
Seasonality
A regularly occurring change each year that may affect your business, such as increased sales
during the Christmas season.
Secondary Research
Information collected from anything other than the original source, such as a book.
Short term liabilities

Money that is to be paid in less than 12 months including wages, short term loans, taxes,
credit card balances.
Sole Proprietorship
An unincorporated business owned and usually operated by one individual.
SWOT Analysis
Is a strategic planning term used to assess Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal, meaning they come from within the business.
Opportunities and Threats are external, meaning they come from sources outside the business
such as competitors and the environment.
Target Market
That part of the market, which are a business’ potential customers.
Term
The maximum time allotted for a loan to be repaid.
Term Loan
A loan intended for medium term or long term financing to supply cash to purchase fixed
assets such as machinery land or buildings or to renovate business premises.
Venture Capital
Commonly refers to funds that are invested by a third party in a business either as equity or as
a form of secondary debt.
Working Capital
That capital being used in conduct of a business to buy materials, pay wages etc. as
distinguished for the capital investment in fixed assets. In accounting it is the excess of a
company’s total current assets over total current liabilities.

Key Business Ratios 58
KEY BUSINESS RATIOS
Current Ratio: Rule of thumb for this ratio is between $2 and $1 (the higher the better), and
allows a business to determine how well they are able to meet their current debt
requirements with their current assets.
Total Current Assets

Total Current Liabilities
Quick Ratio: Rule of thumb is $1 or 100%. The quick ratio indicates a company’s ability to
pay current debt with only highly liquid assets (cash, AR, marketable securities).
Quick Assets
Current Liabilities
Net Income to Equity: identifies the return on investment (ROI) that owners and
shareholders are receiving on their investment.
Net Income
Total Equity
Debt to Equity: is a comparison of the business investment between creditors and the
investment by the owner(s). There is no standard for the debt to equity ratio, however, the
higher the ratio the more creditors claim. Too high of a ratio may indicate the company
relies too much on debt financing, while too low of a ratio may indicate the company may
not be realizing its potential by being too conservative.
Total Debt
Total Equity
Net Profit Margin: Shows management's ability to control business expenses while making
a reasonable profit from sales. A higher ratio is always more desirable.
Net Profits
Sales
Inventory Turnover: is the number of times inventory (as a whole) has been sold over a
specified period of time.
Sales
Average Inventory

Key Contact List 59
KEY CONTACT LIST
Alcohol and Gaming Licensing for establishments 20 Dundas Street West

Commission of Ontario serving liquor to the general Toronto, Ontario M5G 2N6
public Phone: 416-326-0450
Internet: www.agco.on.ca
Brant County Employment Offers employer assistance 38 Darling Street

Services including job displays, Brantford, Ontario N3T 6A8
recruitment assistance, labour Phone: 519-759-3191
market information, access to Fax: 519-759-1750
wage subsidies and interview Call BCES Order Service at
facilities (519) 751-6596
Internet:
www3.sympatico.ca/bces
Brant County Health Unit Conducts public health Director of Environmental Health
inspections for establishments and Inspection Services
serving food to the general public 194 Terrace Hill Street
Information on the sale of Brantford, Ontario N3R 1G7
tobacco and smoking by-laws Phone: 519-753-7377
Internet: www.bchu.org
Brantford Business Self Help Provides a number of services for Economic & Business
Office new and existing businesses Development Services
Business information, seminars City of Brantford
and consulting services 100 Wellington Square
Regional access site for Canada- Brantford, Ontario N3T 2M3
Ontario Business Service Centre Phone: 519-759-4150
Assistance selecting a business Fax: 519-752-6775
location Internet:
www.city.brantford.on.ca
Email:
ecdevel@city.brantford.on.ca
Brantford Human Resource Assists local businesses with 58 Dalhousie Street

Centre of Canada their hiring, recruiting and Brantford, Ontario N3T 2J2
information needs Phone: 519-751-6500
Fax: 519-751-6529
Internet: www.onhrdc-
drhc.gc.ca/brantford
Brantford Regional Chamber Services for both members and 77 Charlotte Street,
of Commerce non-members P.O. Box 1294
Businesses can use the Export Brantford, Ontario N3T 5T6
Trade Services and information Phone: 519-753-2617
library Fax: 519-753-0921
Business Information Seminars Internet:
Members are offered a group www.chamber.mainpage.net
insurance plan and Visa & E-mail:
MasterCard discounts chamberofcommerce@bfree.on.ca

Key Contact List 60
Brantford Public Library Entrepreneurs can research a 172 Colborne Street

business idea at the Library Brantford, Ontario N3T 2G8
How-to books and videos Phone: 519-756-2220
Business directories, magazines, Internet:
newspapers www.brantford.library.on.ca
Federal/Provincial legislation
Statistical and other business
information
Business Development Bank of Wide range of business start-up, Mr. Marc Flindall
Canada expansion and development loans 25 Main Street West, #101
Variety of business consulting Hamilton, Ontario L8P 1H1
services Phone: 905-572-2951
Fax: 905-572-4282
Internet: www.bdc.on.ca
Canada-Ontario Business Information on government Phone: 416-954-4636

Service Centre programs, services and Toll-Free: 1-800-567-2345
regulations Fax: 416-954-8597
Info-FAX: 416-954-8555
Toll-Free: 1-800-240-4192
Internet: www.cobsc.org/ontario
Email: info@cobsc.org
City of Brantford, Municipal licensing, land use and 100 Wellington Square
Corporate Services zoning requirements Brantford, Ontario N3T 2M2
Licensing Clerk Planning information and Phone: 519-759-4150
Planning and Building Building permits Internet:
Services Department www.city.brantford.on.ca
County of Brant Municipal licensing, zoning and Mount Vernon

land use regulations for P.O. Box 160
businesses in the Brant County Burford, Ontario N0E 1A0
region Phone: 519-449-2451
Internet: www.county.brant.on.ca
Employer Health Tax Office, Registration for Employer Health 213 King George Road
Ministry of Finance Tax Brantford, Ontario N3R 6S8
Phone: 519-754-4849
Hours: 8:30 a.m. – 4:00 p.m.
Internet:
www.ccr.gov.on.ca/mbs/english/
programs/fin0841.html
Enterprise Brant Services for new and existing 330 West Street, Unit 10
businesses including business Brantford, Ontario N3R 7V5
consulting, financial assistance Phone: 519-752-4636
programs, meeting rooms, Fax: 519-759-0098
equipment rentals and business Internet:
resource area www.enterprisebrant.com
SEA program Email: biz@enterprise.com

Key Contact List 61
Industry Canada Publications on business related Corporations Directorate

topics 25 St. Clair Avenue East, 7th Fl.
Filing of Articles of Toronto, Ontario M4T 1M2
incorporation Phone: 416-973-6486
Internet: www.ic.gc.ca
Ministry of Consumer & Administers the Business 250 Yonge Street

Commercial Relations Practices Act Toronto, Ontario M5B 2N5
General Inquiry Unit Call for information on Phone: 416-326-8555
provincial licensing Toll-Free: 1-800-268-1142
Internet: www.ccr.gov.on.ca
Ministry of Consumer & Filing of Provincial incorporation 393 University Avenue, Suite
Commercial Relations forms 200
Companies Branch, This is only their mailing address Toronto, Ontario M5G 2M2
Corporate Services Sector Phone: 416-314-8880
Toll-Free: 1-800-361-3223
Ministry of Consumer and This is only the office address 375 University Ave., 2nd Floor
Commercial Relations Toronto, Ontario
Companies Branch
Ministry of Education and Information on trade 515 Park Road N., Suite 7
Training Workplace Support certifications in the City of Brantford, Ontario N3R 7K8
Services Brantford Phone: 519-756-5197
Apprenticeship Client Services Fax: 519-756-0724
Internet: www.edu.gov.on.ca
Ministry of Finance Vendor's permits for provincial 115 King Street West
taxes (Retail sales tax) Hamilton, Ontario L8N 3Z9
Information on retail sales tax Phone: 905-521-7504
Toll-Free: 1-800-263-9229
Internet: www.gov.on.ca/fin
Ministry of Labour Occupational health and safety 155 Frobisher Drive

regulations, employment Waterloo, Ontario N2V 2E1
standards and provincial labour Phone: 519-885-3378
codes Toll Free: 1-800-265-2468
Fax: 519-883-5694
Internet: www.gov.on.ca
Mohawk College, Continuing Distance education courses on 411 Elgin Street

Education & Business business related topics Brantford, Ontario N3T 5V2
Development Employee Training consultant to Phone: 519-758-6071
Brantford Campus help employers with their Fax: 519-758-6070
training needs Internet: www.mohawkc.on.ca

Key Contact List 62
Mohawk College of Applied Job Connect program provides a Job Connect Program
Arts and Technology wage subsidy and free support 411 Elgin Street
services to employers willing to Brantford, Ontario N3T 5V2
provide on the job training Phone: 519-758-6011
Other requirements do apply Fax: 519-758-6081
Internet: www.mohawkc.on.ca
Ontario Works Offers a self-employment 38 Darling St.

program helping recipients of or Brantford, ON N3T 5V2
those eligible for OW benefits to Phone: 519-759-3330
become self-employed Fax: 519-759-1750
Publications Ontario Individuals looking to enter into 800 Bay Street, 5th Floor
a partnership can purchase the Toronto, Ontario M7A 1N8
Partnership Act and the
Partnership Registration Act
Provides information on creating
a partnership agreement
Regional Municipality of Municipal licenses, land use and 70 Town Centre Drive
Haldimand-Norfolk zoning information for the Townsend, Ontario N0A 1S0
Haldimand-Norfolk region Phone: 519-587-4911
Revenue Canada Tax forms and information for 150 Main Street West,
personal corporate or business P.O. Box 2220
GST registration Hamilton, Ontario L8N 3E1
Booklets and information on Phone: 905-570-7260
income tax, payroll deductions, Toll-Free: 1-800-959-5525
GST, and excise/customs Fax: 905-572-2338
legislation Forms Warehouse:
1-800-959-2221
Internet: www.ccra-ardc.gc.ca
Two Rivers Community Municipal licensing, land use and Box 225
Development Corporation zoning regulations for businesses Ohsweken, Ontario N0A 1M0
in this region Phone: 519-445-4103
Fax: 519-445-2154
Workplace Safety and Worker's Compensation 120 King Street West, P.O. Box
Insurance Board registration 2099, Station LCDI
Hamilton, Ontario L8N 4C5
Phone: 905-523-1800
Toll-Free: 1-800-263-8488
Fax: 905-521-4502

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ENTREPRENEUR'S

Guide to Local Resources

10 Steps To Starting A Small Business

Writing A Business Plan

Key Business Ratios

BRANTFORD BUSINESS SELF HELP OFFICE

Some programs require individuals to meet eligibility requirements. For more

The Entrepreneur's Guide To Small Business In Brant County

LOCAL ORGANIZATIONS Continued

BRANTFORD HUMAN RESOURCE CENTRE OF CANADA (HRCC)

BRANTFORD REGIONAL CHAMBER OF COMMERCE

Entrepreneurs have access to the Chamber’s Exporting Trade Services, business

BUSINESS DEVELOPMENT BANK OF CANADA

BRANT COUNTY EMPLOYMENT SERVICES (BCES)

MOHAWK COLLEGE CONTINUING EDUCATION & BUSINESS DEVELOPMENT

The Entrepreneur's Guide To Small Business In Brant County

FINANCIAL ASSISTANCE PROGRAMS

A. Business Loans: Small Business Loans for business start-up or expansion.

Amount: Up to $125,000 for any one business.

Program Criteria: Business must be located in Brant County or Brantford. Other

B. The Self-Employment Assistance program (SEA): The SEA program is an HRDC

Amount: Dependent upon requirements and eligibility of participant.

Program Criteria: the individual must be a qualified Employment Insurance claimant

BUSINESS DEVELOPMENT BANK OF CANADA

A. Micro Business Program Loan: offers specialized financing to support innovative

B. Young Entrepreneur Financing Program: gives entrepreneurs a solid foundation to

Amount: Term Financing of up to $25,000.

Program Criteria: Entrepreneur must be between ages of 18 and 34.

FINANCIAL ASSISTANCE PROGRAMS Continued

Amount: Student Venture Loan of up to $3,000.

Program Criteria: Individuals age 15 to 29 currently attending school or returning to

Applications Available: at designated Royal Bank branches or the Brantford Business

B. Young Entrepreneurs Program: Royal Bank encourages youth currently not

Amount: Loan amount of up to $7,500.

Terms: Prime +2% interest rate. Loan period of up to 60 months.

Applications Available: at designated Royal Bank branches or the Brantford Business

C. The Business Improvement Loans/Small Business Loans Act: is a federal program

Amount: offers loans of up to $250,000 for a period of up to 10 years.

Program Criteria: Loan must be used for fixed assets only.

Applications Available: at any chartered bank.

The Entrepreneur's Guide To Small Business In Brant County

BUSINESS CONSULTING SERVICES

A. Business Management and Start-up Consulting

BRANTFORD BUSINESS SELF HELP OFFICE

Consulting services provided free of charge to entrepreneurs either starting up or already

A. Personal Consultation: For starting up or managing a small business. Consulting is

C. Location Selection: A Development Officer can assist new or existing businesses in

D. Business Regulations: Entrepreneurs can receive information and consultation on

Consulting services are provided at no cost to anyone looking to start a business or

The Entrepreneur's Guide To Small Business In Brant County

BUSINESS CONSULTING SERVICES Continued

BUSINESS DEVELOPMENT BANK OF CANADA (BDC)

Growth Consulting: BDC consults on diagnosing areas of growth potential, feasibility

Quality Consulting: this line of consulting focuses on financial management, human

B. Export Trade Consulting

BRANTFORD REGIONAL CHAMBER OF COMMERCE

BUSINESS DEVELOPMENT BANK OF CANADA

The Entrepreneur's Guide To Small Business In Brant County

WORKSHOPS, SEMINARS & COURSES

BRANTFORD BUSINESS SELF HELP OFFICE

The Office provides workshops to entrepreneurs starting up or already operating.

Workshops Available: Introduction to Entrepreneurship

BRANTFORD REGIONAL CHAMBER OF COMMERCE