Maple Leaf Angels is Ontario’s largest and most active angel investor group. Since its founding in 2007, Maple Leaf Angels has invested $6m in start-ups. Maple Leaf Angels is made of about 40 accredited high net worth individuals, business leaders and entrepreneurs mostly from the Greater Toronto Area.  A partnership with the RIC Center opened up a chapter to serve the west GTA.

Maple Leaf Angels hold 10 pitching rounds annual, with an average of about 3 companies per pitch. Maple Leaf Angels is not bias towards any one industry; a start-up from any sector can apply. It is up to individual investors to decide in who they wish to invest and how much. Typically, most investments are in the range of $200 000 to $400 000 and act as the required capital to accelerate the company forward significantly. Investors receive equity or convertible debt.

Applying for the opportunity to pitch is done through an online submission of a business plan. Submission can be done anytime, there are no deadlines. Maple Leaf  Angels acknowledges that it is beneficial to have someone to known to Maple Leaf Angels act as a referral; the referral can be an innovation center (such as MARS), professional service firm (such as  Mckinsey and Company,)  employee of a government funding program or someone who has successfully pitched to Maple Leaf Angels. From around 40 monthly submission, 4 to 6 companies are selected for a 15 minute pitch to a review committee, the top 3 companies are invited to present to investors.

While a perfect business plan is a definite must, having a persuasive pitch is vital. The pitch should focus on the benefits to investors – market size, projected revenues, core competencies, barriers to entry, return on investment and an exit strategy.

From the time that a start-up pitches to investors, it can take between 1 and 4 months to receive a check depending the length of due diligence, negotiations and preparation of necessary legal documents.

Aside from receiving capital, angel investors often offer other benefits such their network of contacts and mentorship.

Please feel free to contact me should you have any questions about business plans or pitching to investors. I can be contacted at jorge@jorgeleclair.ca

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Business Development  Bank of Canada  (BDC) offers venture capital to Canadian pioneering entrepreneurs and start-ups.

Business Development Bank of Canada is a federal government owned financial institution with a mission to help develop Canadian businesses through financing, venture capital and consulting services, with a focus on small as well as medium-sized enterprises. BDC’s  entrepreneurial and progressive corporate culture exists to support to Canadian businesses and accelerate the success of entrepreneurs.

Venture Capital is available to businesses at any stage (from seed to late/growth stage investments) involved in:

1. Green Energy Production
2. Environmental and Green Technologies
3. Manufacturing Innovations
4. New Electronics
5. Advanced Materials
6. Improvements in broadband transmission/bandwidth
7. Optical and Wireless Networking Technologies
8. Innovative Life Sciences
9. Novel Information Technologies

Typical initial investments range from $500 000 to $3 000 000 as part of a financing round in the $1 000 000 to $10 000 000 range. In return BDC will ask for up to a 49% control of the company and a position on the Board of Directors.

With over 1000 annual request for venture capital financing, the selection criteria and process is extremely competitive with only a few businesses receiving funding. In order to increases the chances of being selected the business must have a leadership team with excellent credentials along with an attitude that wishes to work alongside BDC,  a unique competitive advantage with strong barriers to entry, significant intellectual property, technologies with broader applications than a single product or market, viability for high growth plus high revenues,  job creation, a clear exit strategy, commitment from other investors and detailed business plan.

Companies wishing to apply for BDC Venture Capital must present business plan. Applicants that demonstrate potential will be asked to submit to a due diligence check and invited to a series of meetings discussing a venture capital ask and possible offer. Once an agreement is reached, funds can be invested. This entire process usually takes 3 to 6 months to complete.  

More information can be found at www.bdc.ca

Please feel free to contact me should you have any questions or comments. I can be reached at jorge@jorgeleclair.ca

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As the world of fundraising evolves and becomes more interconnected, successful non-profit organizations are increasingly in need of a new, more holistic approach to growing their organizations.

What is a Holistic Fundraising Strategy?

A holistic fundraising approach is a strategy that aligns fundraising, financial management, communications and organizational polices. This is in contrast to pursuing these elements on their own, which unfortunately happens all too often.

Fundraising

Generally, fundraising is a major strategic focus for most organizations. Effective fundraising should first involve the creation of a “Fundraising Portfolio” – a fundraising plan consisting of diversified fundraising channels. (grants, galas, third party events, capital campaigns, high net worth donors, corporate partnerships, membership campaigns, etc.) A Fundraising Portfolio will present a coherent strategy that balances the associated investment of organizational resources and the expected generated revenues of each fundraising initiative. The value of a Fundraising Portfolio is that it provides a strategic organizational direction and promotes organizational sustainability because it prevents reliance on just one or a few revenue sources.

Another important aspect of fundraising is adopting a fundraising strategy founded on the belief that strengths and weaknesses can be leveraged by building strong networks. Thus, it is vital that foundations endeavour to create winning teams; often consisting of charitable organizations, high net worth donors, politicians, grassroots groups, businesses and funders.

Finally, fundraising is too important a task that it should not be left to just the fundraising department; it is something that everyone in an organization should be part of. For example, obtaining grants require a good proposal describing an innovative program, metrics, community support and sustainability. Therefore, a good grant proposal requires the input from program staff, participants, and community stakeholders; furthermore, it should be supported by strong board policies as well as financial statements.

Financial Management

With greater success in raising capital, a non-profit organization must be able to successfully manage its capital.

Proper financial management must be a comprehensive process as opposed to independent organizational initiatives. An Investment Policy Statement (IPS) is the first step in financial planning. An IPS describes how funds will be investment and managed according to future goals as well as anticipated needs; additionally, it includes a strategy than incorporates contingency plans. (For example what do to with the invested funds should there be a drastic change in the market.)  An IPS should also be aligned with a Fundraising Portfolio. An IPS is expected by individual high net-worth donors, corporate partners,  or planed giving arrangements. An IPS is especially important for a capital campaign. Without an IPS an organization looks immature and unprofessional. Donors want to know what policies exist to safeguard the proper use of their funds.

Communications

All foundations have a message that needs to be communicated; good communication is about reaching and connecting with the target audience.

A focal point are Web 2.0 communications channels that should include:

• a SEO optimized website that captures the attention of visitors
• an opportunity for online giving
•  a blog or e-newsletter that shares important news and information
• Twitter and Facebook pages that allow for discussion of issues with your supporters

Whether it’s an Annual Report, AGM Presentations, a video advertisement on YouTube or a thank you card to volunteers, all communications initiatives should be linked into a cohesive message.

Constant communication builds a brand and a solid brand is vital for growth. The end result of a good brand is name recognition, awareness of your message among the public, increased media coverage and a sense of trust from potential donors. A good brand will help your organization recruit and retain the best people.

Events are an important aspect of communications. Events can celebrate organizational achievements, recognize donors, showcase programs, etc. An expert event planner not only provides superior event services, they also provide media and public relations expertise.

Organizational Policies

Effective organizational polices integrate seamlessly with fundraising, financial management and communications. Job descriptions must exist. By-laws should be to update. Financial statements should be clear and also up to date. Most importantly, all non-profit organizations must have a multi-year strategic plan.

How to create a holistic fundraising strategy?

A good start to creating a holistic fundraising strategy would be having a team meeting with staff from all departments and discussing how to better collaborate to achieve goals. This process should be led by an experienced management.

For organizations that lack experience, it is best to find a professional team that offers fundraising, financial management and communications consulting. Such teams are made up of individual firms (or self employed professionals) that have a history of working together in order to better serve their clients. Usually such a team will consist of financial professionals, communications specialists, fundraising consultants, event planners and web experts.

Please feel free to contact me for questions or advice on how to implement a holistic fundraising strategy. I can be reached at jorge@jorgeleclair.ca

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As a Business Development Consultant, I am often asked questions and advice regarding writing a Business Plan. In this article, I share answers to common questions.

What is a business plan?

A Business Plan is a strategy for successfully starting and operating a business based on management, environmental, economic, industry, marketing, operational and financial information. It is a map taking an idea from a concept to a revenue generating business. Developing a business plan for a business idea is a way to for entrepreneurs to assess the requirements, challenges and advantages of their business.

What information should a business plan contain?

The content and length of a business plan will vary based on the business, however at a minimum a business plan should be 30+ pages and contain the following sections: (note film projects and non-profit organizations will use a different format which are not discussed in this article)

1. Management – Biographies of management team and board of directors.
2. Business Profile – Vision and mission statement, business registration, business model and company history.
3. Product and Services – Description of products and services being offered.
4. Business Operations – A detailed explanation of how the business will be operated.
5. Industry Analysis – Industry research proving viability – national/regional trends, regulatory requirements, stakeholders, SWAT and competition analysis, risk, success factors, required due diligence.
6. Marketing Plan – 3 year Marketing Plan, including a detailed monthly first year plan.
7. Financial Plan – Detailed financial plan that includes income/revenue, monthly cash flow, break-even analysis and annual balance sheet statements.
8. Implementation Plan – Work plan with measurable, time bound milestones, plus a synopsis of future goals.
9. Funder/Investor/Lender – Offer and proposed return.

In addition to these sections a social enterprise will also include the following sections in their business plan:

10. Organizational Purpose – Description of population served and cause being addressed.
11. Community Impact – Short/long term economic, social, technological and environmental benefits.
12. Organizational Support – Identification of target supporters, donors with a connection with the organizational mission (grassroots and high net worth individuals), development of a fundraising portfolio using both new and current diversified fundraising channels such as government funding sources, corporate partnerships, grants, web 2.0 fundraising, third party events and memberships.
13. Acknowledgement – How the social enterprise will acknowledge supporters.

How should information be presented?

Given the detail required in a business plan, it is reasonable for a business plan to quickly become a lengthy document. However, lengthy documents can be overwhelming to read; therefore it is important that a Business Plan present information clearly and creatively in a way that captures the reader’s attention. To the business manager a Business Plan is a guide, but to lenders, investors, or other stakeholders a business plan is an advertisement that must inspire. Designing a business plan with a creative look, using graphics and diagrams to explain concepts is a must.

Who should develop a Business Plan?

Given the importance of a Business Plan, it should be developed by a business professional. A business plan writer should not be just a writer; rather they should be a business professional with a strong background in finance, marketing, operations, management, research and proposal writing. Their service should not be limited to developing the plan, instead their added value should involving coaching and advice with implementation.

At the least, it is important that a business plan be reviewed and critiqued from an unbiased third person point of view; that is another key service that a business development consultant provides. A Business Plan provides a reality check. For example, it is easy for an entrepreneur to become so excited about their idea that they develop an unrealistic belief in the success of their idea. Business history is full of innovative products that failed because they did not have a clear path to market or insufficient business resources. A Business Development Consultant can also educate a business owner on how to prepare and adapt to the future. I have sometimes been contacted by business owners in a bad financial situation because they did not have a business plan that properly predicted future cash flow needs.

Can a Business Plan help me raise capital for my business?

There are many exciting opportunities for financing including private investors, bank loans, government backed loans, grants, subsidies, hiring incentives and business incubators. All types of funding require presenting a business plan that clearly explains your business concept in away others can understand; it should clearly state what you want to achieve, where you want your business to go and how you plan to get there. However, not all businesses are eligible for funding.

Conclusion

A persuasive, detailed and creatively designed business plan is the first step towards starting a business. The difference between simply having dream and making it real, is the decision to start implementing the dream and remaining dedicated. That is exactly what separates dreamers from entrepreneurs. A Business Plan is the first step in turning imagination to income.

Questions about business plans? Please feel free to contact me at jorge@jorgeleclair.ca

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One of the Ontario’s government hottest business funding programs is the Ontario Emerging Technologies Fund.

The Ontario Emerging Technology Fund (OETF) is a $250 million ($50 million a year, over 5 years, 2009 – 2014) program where the Ontario government co-invests alongside venture capital firms, private investors (angel investors) and investment corporations (i.e. pension funds) towards clean technology, life sciences/health care and digital media/telecommunications.

The program is a powerful opportunity for start-up and existing businesses to attract investment.

The program was established by Ontario’s Ministry of Research and Innovation, whose mission is to develop policy as well as programs that will help commercialize academic research and innovative venture start-ups.

To manage the OETF, the Ontario government established a crown corporation – The Ontario Capital Growth Corporation (OCGC). Its mandate is to manage the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP (OVCF) and to manage and operate the Ontario Emerging Technologies Fund (OETF).

Investors must first apply to become Qualified Investors from the OCGC. It is relatively easy to become obtain Qualified Investor status. Qualified Investor eligibility criteria includes: sufficient available investment capital, investment portfolio performance history over the last 5 years, strong Ontario footprint and meeting due diligence/ethics requirements. Once Qualified Investor status is achieved, a co -investment proposal is submitted for review. In the case of Angel Investors, a co-investment proposal must be submitted along with an application to become a Qualified Investor. In other words, Venture Capital and Investment Corporations, can become Qualified Investors without having a targeted co-investment opportunity, but Angel Investors must have an immediate co-investment need.

First time co-investment opportunities of up $4 million are available.

Accessing requires either that Qualified Investors approach a business. that a business find a Qualified Investor or that a business find an investor and ask them to apply for Qualified Investor status.

The Fund model is based on a number of design principles that are consistent with achieving the government’s goal and objectives for the Fund

1. Market-based investment decisions – identification of investment opportunities will be undertaken by qualified investors that have a proven track record of success and have been pre-qualified by Ontario

2. Rapid deployment of capital – the Fund will have the ability to make investments directly into companies within a short time frame.

3. Focus on key industry sectors for Ontario – the Fund will focus its investments on sectors of strategic importance to the province.

4. Government’s role as a catalyst – Ontario will act as a catalyst to leverage private sector capital.

5. Ability to make additional investments into an investee company – the Fund will be able to make both initial and follow-on investments to support the ongoing growth of high potential, innovative companies.

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The Business Development Program of Atlantic Canada’s Opportunities Agency offers interest free, unsecured business loans for new or existing businesses that are repayable on a flexible time schedule built around a business’ needs. The exact amount of funding provided is evaluated on a case by case basis.

In order to apply for funding an applicant will need to present a persuasive business plan that explains a financial need, proves repayment viability using qualitative/quantitative data and demonstrates a benefit to the Atlantic community.

The program does not fund 100% of costs, rather it funds 50% or 75% of eligible costs.

Cost eligible for 50% financing include direct start-up or operating expense such as working capital, buildings (new acquisitions or renovations), site improvement (for example parking space creation, signage, landscaping, etc) equipment, patents, certifications and trademarks.

Cost eligible for 75% financing include marketing, staff training, required case studies, consultant fees, productivity improvement, environmental assessments as well as research and development expenses.

As a Business Development Consultant I am available to answer any questions you may about this or other funding programs. I can also assist in applying to this program. I can be contacted at jorge@jorgeleclair.ca

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“Every time I go to a movie, it’s magic, no matter what the movie’s about.”
-Steven Spielberg

The Canadian Film Centre (CFC) offers film development and production grants through its Feature Film Project (FPP) – a development plus production focused mentorship program for emerging Canadian dramatic feature filmmakers.

Established by the Canadian Film Centre in 1992, and acting as Executive Producer, the Feature Film Project is provides supervision and up to 100% of the necessary financing for the development, production, distribution and marketing of dramatic feature films.

The Feature Film Project is awards 2 different grants:

1. Ultra-low Budget HD Feature (projects that can completed with a budget of up to $250 000): For example, High definition (HD) digital format, minimal cast and crew (approx. 2 to 4 principal/lead actors, small/mobile crew),minimal lighting and special production requirements and a flexible schedule. Films must be shot and delivered in HD.

2. Low Budget Feature (projects that can be completed with a budget of up to $500,000): For example, 16mm or 35mm film OR high definition (HD) digital format, 8:1 shooting ratio, approx. 2 to 3 principal/lead actors and 2 to 3 support cast, approx 15 to 25 person crew, and a 15 to 20 day or ‘custom’ schedule. Films must be shot and delivered in HD.

Both programs follow a 2 phase pathway:

Phase 1 – Development: This phase involves an in-depth review of the project including script, story editing, Director’s goals, cast, Production Company, team capacity, post-production plans, distribution and marketing strategy.

Phase 2 – Production Financing: Select project that have successfully completed phase 1 move into phase 2 where they are given the required funds to achieve set goals and screen their film at the box office.

CFC Feature Film Project accepts applications 3 times a year.

Eligibility for Feature Film Project is competitive and the minimum requirements are dramatic feature film not less than 85 minutes in length that are intended for theatrical release and produced/owned by a Canadian company. Preference is given to projects where the writer, director and producer have not individually or as a group made more than one dramatic feature film.

The Canadian Film Centre was founded in 1988 since then it has become an industry leader in developing Canadian talent and pushing the boundaries of film through creative expression as well as the embracing of new technologies. Films from the Canadian Film Centre have shown at prestigious film festivals such as the Cannes and Sundance Film Festivals. Equally impressive is that 25 Genie Award Nominations have been achieved for the cast and crew members working on FFP productions. A key mandate o the Canadian Film Centre is to provide 100% of the financing, creative, professional and administrative experience and mentorship necessary to ensure the successful development, production and marketing of Canadian theatrical feature films.

As an experienced Grant Writer and Consultant, I would be happy to answer any question regarding film funding – jorge@jorgeleclair.ca

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The Law Foundation of Ontario (LFO) is committed to advancing the ideal of a truly accessible justice system through the promotion of legal knowledge, excellence within the legal profession and community participation in the legal system.

The LFO is mandated to use 75% of its revenues to fund Legal Aid Ontario, the remaining 25% is used for discretionary grants that align with its Vision, Mission and Guiding Principles.

The LFO funds programs and initiatives that promote and enhance access to justice for all Ontarians. As such it offers 2 Grant Programs, Small Grants of under $25 000 and Major Grants over $25 000. Grants are open to any secular and non-political Ontario non-profit organization or educational institution. Both grant programs are open to applications at various times throughout the year.

Both Small and Major Grant applications require the submission of a standard grant proposal demonstrating strong organizational capacity, key staff biographies, focused measureable goals/outcomes, strong support from community/non-profit stakeholders, a detailed financial plan and a well thought out implementation work plan. Applying for a Major Grant first requires a Letter of Intent.

According to the LFO, since its founding in 1974, “the LFO has given out over $160 million in grants and over $500 million to Legal Aid Ontario. The LFO’s 33 year history demonstrates a strong commitment to supporting the community and to promoting excellence within the profession. In the coming years, the LFO will work to maintain and support more initiatives and enable the work it has seeded to continue having long lasting and wide ranging impact.”

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Established in 1986 by the federal government, the BC Community Futures Network promotes economic prosperity in British Columbia’s rural regions. Since its creation, the British Columbia Community Futures Network has played significant role in entrepreneurial and community development. For example, in the 2006/07 fiscal year, the BC Community Futures Program created or maintained more than 4,559 jobs, offered 606 loans totalling $31 million and leveraged an additional $53 million.

BC Community Futures Network has 34 locally and strategically positioned offices across the province.

While BC Community Futures offers many programs, one of its strongest programs is its Small Business Loan Program which provides funds up $150 000 in funding to small businesses who for various reasons are unable to get approved for financing from other sources such as banks. The Small Business Loan program can be used to stabilize an existing business, grow a thriving enterprise or start a new business.

Acceptance for a BC Community Futures Small Business Loan depends on having a persuasive and detailed business plan that clearly shows the market viability of the business, the potential for job creation, management experience, ability to repay and reasonable equity.

I would be happy to answer any questions regarding this program or assist you in preparing a successful business plan.

I can be contacted at jorge@jorgeleclair.ca

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The Agriculture Financial Services Corporation (AFSC) is a provincial crown corporation that provides Alberta small businesses, farmers and agribusinesses with funding opportunities that include general business loans, crop insurance, farm income and disaster assistance.

3 programs of interest from AFSC are:

Commercial Loan Program

The Commercial Loan Program offers up to $5 million to any qualifying Alberta business run by either Canadian Citizens or Landed Immigrants. The loan must be used for real property expenses such as signage, equipment, computers, renovations, buildings, vehicles, etc. This program has 3 advantages over many other financing programs. First, it offers a higher loan amount than other loans offered through financial institutions or government programs.
Second, borrowers can re-borrow up to the maximum limit as loans are paid down or paid out. Third, a variety of affordable and flexible payment options are available.

Specific Loan Guarantee Program (SLGP)

The SLGP program enables applicants to obtain financing from other lenders with the support of a specific loan guarantee from the AFSC. Sometimes, small businesses or agribusinesses with potential for growth find themselves in a situation where despite they can demonstrate they can repay a loan, they are unable to qualify for funding from financial institutions. The SLGP, addresses this shortcoming and helps strengthen Alberta’s economy by empowering small businesses with the support they need to successfully obtaining funding. Guarantees of up to $5 million can be provided to financial institutions on behalf of an applicant. Risk for the loan guarantee is normally shared between AFSC and the financial institution. Guarantees can also be in the form of a letter of credit, bid bonds, or performance guarantees.

Alberta Farm Loan Program (ALFP)

The ALFP provides up to $5 million in financing to Canadian citizens or landing immigrants who as primary agriculture producers wish to start or grow their farming operations. Eligible expenses include livestock, land, buildings, equipment, housing, etc. While the loan cannot be used as a operating or feeder loan, it can be used for financial restructuring, restoring working capital or investing in an agribusiness. A unique feature of the AFLP is the Beginning Farmer Incentive (BFI) which offers applicants with a net worth of $500,000 or less, an interest rate reduction of 1.5% for the first 5 years of the loan.

As with almost all lending programs a strong business plan with supporting documentation is required to apply for funding.

For questions or assistance please e-mail me at jorge@jorgeleclair.ca

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