![]() ![]() Among his gems: beware of raising capital from friends and family (“If you lose their money, Christmas will never be the same”) if you don’t use the phrase “‘working capital,” banks won’t take you seriously and always include your salary in your financial projections, but keep it reasonable to attract investors. He also briefed the vets on scenario planning, to help forecast their capital needs, and the fine art of pitching to potential lenders and investors. Regina portfolio manager and angel investor Darryl Yazinowski urged the veterans to study the successes of three pioneering entrepreneurs and organizations: Henry Ford (for his commitment to innovation and efficiency) Harley Davidson (branding) and Jack Daniels (quality). But by keeping a close eye on Big Orange’s prices and inventory, and promoting better service, Eliot says his sales rose 40%. Elliot noted that when a Home Depot opened across the street from his Regina floor-coverings store, he feared the worst. He also offered a personal insight: Don’t be afraid of bigger competitors. If you can serve this need better than anyone else, they will be lined up at your doorstep.” ![]() “Someone needs you right now, and you are their saviour. On Wednesday, local retailer and marketing professor Lee Eliot warned entrepreneurs against the biggest mistake in business: Basing your business on a product rather than market need. Her specific advice included: always have separate bank accounts for each of your businesses (“Never pay someone out of your personal account”) track your cash flow monthly don’t use the Canada Revenue Agency’s depreciation schedule in your financial statements if you have a better formula and beware the costs of fast growth. She warned the veterans that she normally teaches this in three classes a week for 26 weeks. On Tuesday, accounting professor Shelley Lukasewich introduced the class to financial fundamentals, from taxes to balance sheets and financial forecasts. He demonstrated how to assess the size and potential of your target market, with special emphasis on the free data available from Statistics Canada’s surveys of Canadian households and “Labour and Income Dynamics.” He also offered a free source of competitive intelligence: “Look at competitors’ websites. Wallace Lockhart focused on a task many entrepreneurs skip: market research. “With a business plan, you’re trying to sell it to others.” He urged the students to continue their research by asking every entrepreneur they meet, “How do you create value?” “With a business model, you’re trying to sell yourself on an idea,” Moroz said. The exercise forced the students to more realistic about what they can do and what resources they will need. Through a framework called the business model canvas, they were asked to re-examine their target markets, how they will reach them, and what their message will be. ![]() On Monday, Moroz asked the participants to revisit all the assumptions in their business plans. ![]() In the meantime, here is a sampling of the lessons learned: This fall, I will be publishing an e-book to convey the lessons from Based in Business to veterans and Forces personnel across the country (to see how you can help, Google “ Startups for Heroes“). Few Forces personnel have experience in identifying markets, developing brands, financial forecasting, and (ironically enough) recruiting.īased in Business, which is a collaboration of the Prince’s Charities Canada, Futurpreneur and national student group Enactus Canada, aims to fill those gaps. Another veteran told me, they don’t know what they wouldn’t know. ![]()
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