Possibility.ca

We disburse startup loans on behalf of the Canadian Youth Business Foundation (www.cybf.ca).

The Canadian Youth Business Foundation is a national charity offering startup capital and mentoring to entrepreneurs aged 18-34 wishing to start a business in Canada.

When a CYBF Loan Review Committee member reviews your business plan they are assessing the risk of lending you money. They are looking for evidence that you will have the capacity to repay the loan.  The strength of your character is carefully considered. As you develop your business plan - know what funders looking for!

The Past is in Your Future

Like the wake behind a moving boat, your Beacon Score or credit rating follows you through life. It is inevitable. The more rigorous and self disciplined you have been in honouring your commitments and paying your bills on time the higher your Beacon Score. A rating of 690+ is a great score; below 550 is bad news.

Your credit score determines who you have already been being in relation to money and finance. It's not certain that your behaviour will continue to follow that path but it's probable, predictive.

A Credit Bureau Report is revealing as it indicates:

• what you have already been doing (paying on time or late),
• what you already have (glowing testimonials or creditors knocking at your door)
• how you have responded to requests for payment (buried your head in the sand like an ostrich or pulled yourself up by the bootstraps and made a dramatic change for the better).

No matter what your credit score, consider that TODAY is the first day of the rest of your life. If you intend to be an entrepreneur you must bring integrity to this area of your life. Period.

Consider the Business Plan as "Paper Prototype"

A business plan is a tool to get your best thinking on paper. Yes it helps that the document looks pretty. Yes punctuation counts. These seemingly insignificant details tell a lot about your attention to detail. How you do anything is how you do everything! Do you bring impeccability to what you do or do you slap things together haphazardly? Whether your business plan is polished or unpolished is indicative of commitment, professionalism and even your level of customer service. The experience your customers are left with determines how your business will grow. There is a correlation.

What if you're administratively challenged? Get help! Acknowledge the people who made your presentation look great, flow smoothly and numbers add up. Great author's do this in the acknowledgement section of a book. It shows teamwork, partnership and commitment to excellence. LRC members know you're not perfect and you don't know everything on your own. How do they know? They are human too.

Seeing the Future through a Crystal Ball

The business plan you have prepared is like a crystal ball. Decision-makers gaze into it to see how well thought out and prepared you are for the future. Take your own hat off for a moment and set it aside. Now...pretend that you are a hard-nose investor. Look at your business plan as if it's the first time you've ever seen it. Critically analyze it to see how it measures up in four key areas:

1. Company Outline

• Have the goals and objectives of the business been clearly identified?
• Who are the owners and managers of this company? What is their background and experience?
• Do they have the education, expertise, foresight and network to ensure this venture is successful?
• Who are the target customers? How will they connect with these customers?
• What geographical area does the business serve?

2. Operating Plan

• Have the production processes been described?
• Do they have the tools and equipment required to run this business effectively?
• Can the company consistently acquire goods to supply the product/service?
• Do their suppliers offer acceptable pricing, quality and reliable delivery?
• Has the full cost of bringing the product/service to market been considered?
• Have the financial, market and operational risks been analyzed objectively?

3. Marketing Plan

• Does the business plan clearly identify the company's strengths, weaknesses, opportunities and threats (SWOT analysis)?
• Where are the products/services comparatively positioned in the marketplace?
• Are the products/services appropriately priced for that position?
• How will the products/services be introduced to target customers?
• What research has been done to verify the demand for these products/services?
• What is being done to amaze and delight customers?

4. Cash Flow Projections

• Has the flow of money been carefully considered for the next two years?
• Is the amount of money applied for sufficient to acquire the necessary assets?
• Is funding sufficient to cover operating expenses until revenues kick in?
• What assumptions have been made? Are the clearly identified and realistic?
• Are the numbers consistent with what's been said throughout the business plan?
• Have operating costs, loan payments, salaries and utilities been accounted for in the projections?

Apply online at www.cybf.ca using Community Partner code B75. You then have up to 90 days to submit your business plan, cashflow forecast and supporting documents to the Discovery Center for Entrepreneurship for consideration by our Loan Review Committee. 

To your success,