Business Research Visit | Business Intent | Guidelines for Preparation of the Summary of Business Intent | Eligible Business Investments | Deposits & Agreements | Sources of Funds | Notarized/Certified Document Copies | Substituted Evaluation
The following is an outline of what the Summary of the Business Intent should contain:
I. Business Idea/Venture
Describe proposed business idea or venture and include:
- A description of the proposed business idea.
- Products or services that will be provided.
- Market segment business will compete in.
- Who the target customers are.
- The geographic coverage – local, regional or national.
- Identify whether this is a new business start-up or a partial/whole takeover of an existing business.
II. Personal Details
- Education background
- Does your education relate to the proposed business idea?
- Business experience?
- Do you have business experience in the proposed business idea?
- If no relevant experience, can your knowledge or experience be applied to the proposed business idea?
- Qualifications and skills
- Other training or learned skills that are relevant to the proposed business idea.
- Language skills
- Language proficiency
- Language barriers
III. Critical Factors
- Identify government regulations that will be applicable to the proposed business idea such as environmental regulations, health regulations, municipal zoning requirements, and labour rules.
- Are there special insurance requirements?
- Outline any overall anticipated challenges in addition to those identified above.
IV. Market Analysis
- Market size
- What is the size of the market? Is it local, regional, national, or export-oriented?
- Market segment
- Which segment of the market will the proposed business target? For example, the motor vehicle market is made up of many segments: luxury, family, compact, 4WD.
- Market trends
- Is the market growing, contracting, or static? What is the industry forecast?
- Target market and customer profile
- What kind of customers will your proposed business target? Provide demographics data.
- List the existing competitors.
- How will the proposed business compete against competitors?
- How to differentiate product from competitor (can be part of marketing/promotion).
- Marketing and promotion
- What marketing efforts will be required to promote the business and products?
V. Resource Requirements
- Location and distribution
- Will the premise be owned or leased?
- Where will the premise be located?
- Is the planned location close to suppliers, customers, trucking routes?
- Plant and equipment
- What type of equipment will be required? Is there any special equipment?
- Identify suppliers that will supply the raw material or services.
- Is there a contingency plan if a vital supply source fails?
- Distribution Channel
- What channel will be used to distribute products or services–retail, internet, door-to-door?
- Will you be the exclusive distributor, or will you resell to other retailers?
- Professional Advisors
- Do you plan to use outside professional services? Normally accountants and lawyers are required for financial and legal matters.
- Others may include web developers and marketing consultants.
VII. Human Resource Requirements
- Your role
- You must outline your intended role and clearly demonstrate that you will have an active and ongoing day-to-day role in the management of the business.
- Please provide an organization chart.
- Will you employ workers? If so, what are the strategies around finding, hiring and keeping employees?
- Have you taken into consideration federal and provincial regulations around occupational safety and health, as well as labour issues such as wages?
- Will you employ an accountant for payroll issues? If not, are you familiar with requirements for making payroll deductions, such as Income Tax, Employment Insurance (EI) and Canada Pension Plan (CPP) contributions?
VI. Financial Feasibility
- Capital requirements
- How much capital is required to get the business started?
- How much capital is required to keep the business going before break-even occurs?
- Credit requirements
- Will financing be required? How much?
- Source of financing? (Financial institutions? Private investors?)
- Breakdown of investment
- List the total amount of investment.
- List how the investment will be broken down.
- List the amount of personal funds to be invested as well as amount to be financed (borrowed).