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Provincial Nominee Program – Business Plans
Canada is a nation that has depended and is still dependent on immigrants. One avenue from immigration to Canada is to apply as a business immigrant. Some of the business immigration requirements for British Columbia (BC) are for the person to either create or invest in a business that will add value to our society by creating employment.
There seem to be more and more of our potential immigrants starting businesses. They are buying equipment, leasing space and using their creativity and business knowledge to build a business with lasting value. Obviously, they need a business plan; not only for their business to succeed, but also to demonstrate that the business will be successful.
We have written a number of business plans for the various Provincial Nominee Programs (PNP) in the past, but we are now finding that quite a lot of the plans we write are PNP business plans. A PNP business plan is similar in content and design to a regular business plan. However, there are some critical differences. The requirements for the nominee programs vary from province to province and each province continually changes their requirements, so we have to stay on top of the changes.
October 26th, 2011 by barry
What is a Business Plan?
According to Wikipedia, a business plan is a formal statement of a set of goals, the reasons why they are believed attainable, and the plan for reaching those goals.
That’s not a bad definition of a business plan. Probably the first question you should ask yourself is “Do I need a Business Plan?” Here’s a quick business plan quiz that will give you a quick answer.
If you need a business plan because you want to borrow money for your business, or you want to attract equity investors, or you want to get a government grant, then your business plan is a marketing document. Obviously, a business plan designed to attract government grants will have a different slant than a business plan that needs to appeal to a banker.
If the intent of the plan is to obtain financing for your business, then the business plan’s primary purpose is to convince the reader to invest money in your business. What is going to compel them to invest their money in your business? It’s the joint themes of convincing and compelling that makes your business plan a marketing document.
May 12th, 2011 by adminHow Much Does A Business Plan Cost?
I get asked that question every day. Like any good business consultant, and I am a good consultant 
, I answer that question with the only possible answer:-
It depends.
The cost of a business plan bears a strong relationship to the amount of work that’s necessary to produce the business plan.
Many business plan writers use business planning software to help them. They basically ask you a load of questions, plug the answers that you give them into the software and voila – there’s your business plan…$1,500 please.
My approach is different. I’ll find out how much you know about your business and what you have written down and explained. I’ll find out about your overall market and its potential; I’ll find out about your capabilities to service that market. We’ll talk about pricing strategy and marketing tactics. We’ll discuss your operational and staffing requirements. And that’s just the beginning of the business plan process.
We’ll go through numerous iterations and we’ll discuss the changes needed. The financial statements, cash flow analyses and balance sheets will make sense. There won’t be a lot of charts and graphs that don’t really explain much.
Your business plan will be realistic and suitable for you, your investors and your banker. You will get a business plan that works for you. Isn’t that why you wanted a business plan in the first place?
March 22nd, 2011 by barryUsing Twitter For Profit
On Tuesday, I gave a seminar on “How to Increase Your Profits” to about 120 members of the Professional Golfers’ Association of BC. These are the people who help to run the “golf” business. They operate the golf courses, pro shops, golf teaching schools, driving ranges etc. Like all small businesses, they were very interested in discovering more ways to help their businesses make more money.
I was talking about the value of of using Social Media as part of their marketing mix and I asked how many of the audience used Twitter. About 10% of the people raised their hands…mainly younger audience members. I was asked if I had a Twitter account and said “Yes.” Then I was asked the name of my account and I replied “@bestbizplans”. I carried on with the seminar and thought no more about it. The next day, I discovered that over 50% of the audience with Twitter accounts had decided to follow me….That’s powerful.
The reason I asked about Twitter accounts was because golfers are an ageing demographic and most businesses need a constant inflow of customers. As a golfer, one of my biggest frustrations is that I can’t often get good tee-times. A tee-time is a highly perishable commodity. A 3:00 pm time is worth precisely zero at 3:15. At 3:00 it may be worth $60 – $100 and they are usually sold in groups of 4, so an unsold tee-time is worth $240 – $400 plus all of the add-ons. Virtually all of this lost revenue is lost profit, due to the very low variable costs. So an unsold tee-time costs the golf course between $200 and $500 in profits.
Twitter is an ideal medium for selling perishable commodities, like tee-times, restaurant table reservations, theatre tickets, seats at sporting events, concerts etc. If I got a tweet at 11:00 am from a golf course that I like to play, and it told me that they had a 2:00 pm tee-time available, I might phone a few friends and grab it…especially if it was a sunny day and I wasn’t committed that afternoon.
The probability is that I wouldn’t phone to reserve that particular time, but if the golf club had a few hundred followers, it’s almost certain that they would sell that previously unsold time. And they would get full price. WoW! the power of instant, free messaging to a receptive audience.
March 3rd, 2011 by barryWant To Accept Credit Cards?
Most Canadian businesses that deal with consumers (B2C) investigate accepting credit cards. To most small business owners, the language of credit cards is very difficult to understand….not to mention the fees involved.
To accept credit cards you will need to open a merchant account with a credit card processing service. Your bank is almost certainly involved with one of the large payment processing companies, but in most cases, you are free to choose your own service provider. There are numerous fees that you will be charged, so be prepared with a list of questions to ask the company that you interview.
That’s right; interview! You are the buyer and they are the seller (provider) of the service. You are in the driver’s seat, so ask questions until you are satisfied.
The first question is always, “What’s the rate?” You want to know the base rate for “Qualified Transactions.” This is often a percentage of the amount charged, plus a specific transaction fee.
Then, add the credit card company “Assessment Fee”.
If you will not be swiping the card, there will be an additional “Non Qualified Transaction or Card Holder Not Present” fee.
If the card is a “Premium” card, you will be charged an additional “Premium Card” fee. By the way, you won’t know if it’s classified as a “Premium” card until the credit card company bills you!
Ask the sales person if there are any other fees payable on individual transactions.
There is almost certainly a monthly fee for using either a POS (Point of Sale) terminal or even for using your own computer or phone as a method of submitting the credit card information.
You will, of course, have to pay for any equipment that the company provides.
You will also be charged a monthly “Administration” fee.
Ask if there are any other monthly or annual fees.
There will probably be a minimum monthly charge for transaction fees, and this minimum fee will be payable for each type of credit card that you accept…Visa, MasterCard or American Express. Find out the length of the contract and make sure that you have a written record of every type of cancellation fee that may be payable.
You will usually pay an application fee, just to be considered for a merchant account and you will have to pass a credit check and possibly submit financial statements and maybe a business plan. The whole process from start to finish could easily take a month, so planning , like timing is really important. Make sure that your business plan timetable allows sufficient time for you to apply and be approved and set up for a merchant account.
February 23rd, 2011 by barryPlanning Saves Time, Money And The Environment
You’ve all seen the brown UPS trucks everywhere you go. Driving in front of you, not going as fast as you’d like. Parked by the curb, delivering packages. Slowing down to turn right. They’re everywhere, and you often come up on them.
One place that you’ll very rarely see them is turning left at a traffic light…or in fact…turning left anywhere! Is that a coincidence? No; it’s business planning in action. After a great deal of technical analysis, business analysts at UPS determined that turning left wastes gas, increases polluting emissions, and wastes time.
There are other benefits in planning to reduce the number of left turns that a driver makes. If a driver turns left to deliver a package, they have to cross lanes of oncoming traffic. That’s a safety issue. After the business of delivery, the driver has to make another left turn across the traffic to get back in their route.
UPS estimates that their business operations save over 10 million litres of fuel each year by planning their routes to minimize left turns. They save most of this fuel by not having to wait to turn left with their engines idling. By planning their routes, they pick up and deliver on the right; drive to the furthest point; then pick up and deliver on the other side of the road on their return trip.
Planning their routes to reduce the number of left turns is in their Operations Manual. It’s written down, so it’s a plan!
Is your Business Plan written down?
February 16th, 2011 by barryDo You Know What Business You Are In?
Earlier this week, I had an interesting discussion with a small business client. It is a business that provides professional services and also supplies products as a direct result of those services. The business requires professional skills, so it would be logical to believe that the business profits are directly related to the amount of services that are provided.
Based on that information, the best way to make more money is to sell more services or to charge more for the services you provide…or ideally..sell more at higher prices. The industry is price-sensitive, so raising prices is difficult. My client’s services are not perceived as vastly superior to the competition, so it is difficult for them to charge more.
After some analysis, we determined that most of the potential profit was in the supply of the products. Because the products were easily available from many sources, they were basically commodity items. When I arrived at that conclusion, we worked out how to supply the products at a much lower cost. The business will now make 30% more profit from the same level of revenues. Now that’s good business. A little bit of planning, a new business model, and much more profit.
February 10th, 2011 by barryHow Much RFP Business Are You Planning To Lose?
Do your hands go clammy when you see those dreaded letters…RFP ?
Do you hate prospects who ask you what you do and how much you charge?
95% of business people answer those two questions with different answers. I don’t get it.
Requests
F or
P roposals
are exactly that. Someone (and that someone is usually a national or international company or a public agency or a branch of government) wants you to give them a proposal. That means they want you to make them an offer! Are you making so much money that you don’t want to make an offer to a large, potential customer?
Does your business plan state that you are going to ignore large prospects? Probably not!
Like most owners of Canadian small businesses, you pay taxes to the federal government, your provincial government and municipal government. You probably also contribute to the revenues of the power company, phone company, various insurance companies, airlines, automobile companies … well, you get the picture. You are paying a lot of money each year to very large organizations. Wouldn’t it be nice to get some of it back and maybe get a very profitable return on your contributions?
Every one of those large organizations has a purchasing department, and every one of those purchasing departments is mandated to get the best deal they can for their organization. Virtually all of their external purchases are tendered through RFPs. That’s billions of dollars every year.
This is an important topic, so stay tuned for more instalments….
February 2nd, 2011 by barryBusiness Plan – One Size Fits All?
Most “How To” books on writing business plans tell you that you should not “slant” your business plan towards any particular reader. I don’t agree.
A business plan is a communications tool, and Communications 101 teaches that for communication to be effective, you have to use the language of your audience. This is pretty obvious. If you are speaking English and your audience speaks Hungarian, your message will probably not be interpreted very accurately. This is particularly true for business documents, because you may not be present when the reader is reviewing your plan.
If your business plan is written in English and your banker reads English, … no problem? There could be a big problem, because your banker is used to reading documents written in “Banker’s English” and your business plan is written in “Entrepreneur’s English”.
As an entrepreneur, your plan is written with enthusiasm and optimism. The banker is looking at your business plan through lenses tinted with skepticism and pessimism. You are looking ahead at future profits, the lender is looking for potential losses.
Put yourself in the banker’s shoes. Of course, you must be optimistic, but your business plan will be more effective at obtaining financing if it is written from a banker’s perspective.
January 28th, 2011 by barry