Entrepreneurs: let's start at the very beginning.

• Author: Bissonette, Laurie
• Position: BUSINESS SENSE

Potential entrepreneurs may be so enthusiastic that they start up their business by the seat of their pants with an idea that has grown and evolved, or a concept about which they are passionate. This is wonderful--but often means they haven't considered the best way to structure and finance the business and other considerations that could make the difference to them having money remaining each month so they can pay their own bills.

Planning

Many entrepreneurs aren't the best financial planners--actually, some of them might cringe at the very thought of putting together a business plan. These plans don't have to be terribly detailed, but they can still make the difference between success and failure.

Sitting down with an advisor you trust to put pen to paper (or fingers to keyboard) can serve many purposes. It provides you with someone to bounce ideas around with and someone to organize your thoughts, timing and concepts. This person could also help you brainstorm financing ideas that could prevent you from having to put your house up as security.

Finance

You now have a plan--so where does the startup money come from?

You might have some capital--and that is great. If you do, you might not want to expose too much of your own capital to risk up front; however, the rest of this discussion is still valuable to you--so please read on.

Once you have a business plan, look around at the various government grant options. We're in Northern Ontario where, as advisors, we have worked with some very helpful people in government organizations to secure grants for ventures to help get them off the ground. Use every advantage you have that way. Depending on the type of business venture you have planned, you may be able to get up-front grants and "once you've spent the money" grants. Government loans may also be an option--including some that don't accrue any interest for a few years. All of these might help and would certainly minimize the risk to your capital.

Your business plan will also prove crucial when you meet with the bank. They will want to see a coordinated effort and some evidence of your likelihood of success. The stronger your evidence, the less you may have to provide in personal guarantees.

Structure of the business

Incorporate or not to incorporate--that is the question. Whether it is nobler to risk liability in the first year or two to be able to...