PAGE 24, WH1TBY FREE PRESS, WEDNESDAY, OCTOBER 26,.1989 *CSOJR BIESS~ i* For it'ntial finaccng Capital 0 i dea-s One of the many challenges a etart-up buoiness faoes ie arranging its initial financing. The trýaditional sources are personE!] savinge, friends and relatives, a pereonal ban, using the assets of the fledgling business te smcure a bank boan, profoesonal investors and, finally, asking a government agency for a loan guarantee. But initially, you and your personal kevngs are the moet likeby source of funds. Other potential investors, whether they are your family, friends, venture capitaliste or the govenment, usually want te, test your bevel of co nitent by seeing how much of your own money is at risk. Why ehould other people risk their money on your project if youlre not risking your own savings? Wbibe many people are fairby familiar with persoeal and business boans from the bank. a groing source of financing for maibusinesses are Pools 0f investment capital known as venture capital- funds. Some are emal and informally organized pools of money administered by a retired business person. Othere are huge professionally admin- istered pools of investment capital running inte, the millions. Venture capitaliste usualy lilce te take a big minority position in the business, often in the 20 te 40 per cent range. They abso like te have a seat on the board 0f directers sa, they can monitor their investment in a dozen or so businesses and hoping that one or two will do extremely well and make up for the inevitable basses. The Ontario Chamber of Commerce and the provincial government are involved in a "matching agency" aimed at introducing seai businesses te potential investor e ts called COIN, which stands for Canada Opportunities Investment Network, and can be asaessed through any 0f the Ontario Chaxnber 0f Commerces 160 branches. The most sought after type of inveetment opportunity ie industrial manufacturing, followed by consumner goods and high-tech imanufacturing. While COIN tends te work best for companies with bard assets, there je a provincial program, called New Ventures, that je particularly appealing te- service firme. This program provides boan guarantees te financial institutions that lend monev .to email businesses. The maximumn amount for a loan je $15,00 with a dolar-matching requirement by the entrepreneur. Ini Eastern and Northern Ontario, this requirement je reduced te haif of the amount of the loan. Each New Ventures applicant muet complete a comprehensive business plan and agree te hire at least one full-tixne employee. See also The Other Side of theFeo 1 on page 7 "I've got a great idea for a new business scheme - I was wondering If you'd like t0 become a major shareholder." CHANGE IN WH1TBY LABOIRFORCE 1971 1lmdi~ 16é. yemr old woringl Males Females 6,736 14»30 3.50 10,720 024 25.6M Maie participation rate 77.5% (80.3%) 8&.8% (7M9%) Femnale partcipation rata 40.0% (44.3%) 63.4% (58.7%) Average incarne for female $2i941 Average family icorne $10.657 Selectod types o(employment ToWa persans in job type primay idustry manufacturing serviceiduatzy (including governmet) 330 31315 2,M6 .112.8% (.27.1%) +20U,5% (+77.2%) +144.6%b (.45.2%) $80.22 C2=145) +12.9% $13,867 ($13,422) .3n12% $48.264($41.692) 369.9% 375 r3,736 6,33 (Comparable figres for Ontario i brckats) +11.6% (+4.8%) .1032% (.27w8%) +181.1% (.74.8%) Source: Canada Cenmu A utumn Computer Specials XT Computer - $809 9 Printer - $2 69. Lease to own - f rom $ 3 9 mo. T he Computer Depot 1621 McEwen Dr. #19, Whitby 436-2249, Cellular 432-4264 24 HOUR SERVICE & REPAIR COmr *WINDOWS sDOORS SKYUGHTS---SOLARIUMSs For additions, Custom Homes, New Construction & Retrofit "Suprlo Qu llyWndows" 595Wentwýorth St. E., Unit 50 Oshawa 436-9733 The ]i(tlrtz, Friendliest Deli in Town Catering Io small & large groups 118 Brock St. N. Downtown Whltby Interiars Unique(y 9yours Cali for your complimentary in-store decorator consultation offering 35% off upholstery furniture 30% off wallpaper book orders 15% off ail framed prints 111 Brock St. N. - 4 4OO4 4 I. p' D RWK Ri» ------------ r--ý