Social Enterprise for Northern OntarioCoStarter for Change

Application Tool Kit

Submission dates: July 29th, 2016

November 30th, 2016

1

Table of ContentsFormatting and Submission Instructions........................................................................................3

Eligibility Assessment.....................................................................................................................5

Loans & Grant Request Form.......................................................................................................10

SOCIAL ENTERPRISE BUSINESS PLAN TEMPLATE.........................................................................11

2

Submission Guidelines

Formatting and Submission Instructions **All submissions must comply with the formatting instructions described below**

Read each question/instruction carefully and make sure you are filling out accurate and current information.

Please identify and include contact information/titles of all partners, or members of the Social Enterprise. If there are numerous, please include as an appendix and indicate a primary and secondary contact for the purpose of the program.

Applications should be single-spaced and in 12-point Times New Roman font. All Applications must be submitted in a Word Document format. No alteration to the existing tables and/or structure of the application is allowed.

Contact SENO staff if you are having any issues with formatting. You may add as much information needed to strengthen your application within the

tables provided as they will expand, but be as clear and concise as possible. Please submit all additional documentation, such as letters of support, or resume, as

one e-mail attachment. In addition to this application, each applicant is required to submit a Cashflow

Projection. Please contact SENO staff if you require a copy of the Cashflow template. Please submit your application electronically to access@paro.ca by 4:30pm on the due

date. If you require accommodation, or do not have access to a computer, please contact SENO staff to make alternate arrangements to submit your application.

For more information please contact SENO staff:

Aleksa Shermack, Program Manager110-105 May Street NorthThunder Bay, ON P7C 3N9

Office Hours: 8:30 AM – 4:30 PM3

Email: access@paro.caPhone: 807-625-0328

4

Applicant Contact Information

Applicant Name Date Applied

Name of Partner (If applicable)

Social Enterprise Name:

Address Postal Code

City/Town Phone No.

Cell No. E-Mail Address

Best Way to Reach You:

Additional Contact Information:

5

Eligibility Assessment The SENO CoStarter for Change program funds cutting edge, early stage social enterprises that hire or serve marginalized groups. The successful social enterprise will create jobs and have a potential for high-growth.

**If accepted to the program, each SENO recipient must register as not-for-profit and/or for profit or as a registered business in Ontario as a sole proprietorship, partnership or cooperative.

1. A. What is the Legal Structure of your existing business (if applicable)? Sole Proprietorship Partnership Corporation Co-operative Association Nothing yet, I am an unregistered start-up.

B. What is the organizational structure of your existing business (if applicable)? Non-profit For-profit Cooperative Self-Employed Nothing yet, I am an unregistered start-up.

2. A. What is the planned Legal Structure of your new Social Enterprise? Sole Proprietorship Partnership Corporation Co-operative Association

B. What is the planned organizational structure of your existing business (if applicable)? Non-profit For-profit

6

Cooperative Self-Employed

3. Job Creation PotentialPlease complete the following table, estimating the total number of jobs your social enterprise will create.

Job Created (Title) Full Time/Part Time/Volunteer

Number of Jobs Created (estimate)

4. Target Groups – Self IdentifiedI self identify as: Aboriginal people Youth Francophone Persons with Disabilities Newcomers/Immigrants/Refugees Individuals who have a history of

mental health or addiction

LGBTQ Racialized Persons Low-income individuals Persons from Northern Communities Persons from Small Communities Other target groups (Please Specify:

______________ )

5. Target Groups Served:A: Are the primary intended beneficiaries of your product/service from any of the following groups? Please check all that apply: Aboriginal people Youth Francophone Persons with Disabilities Newcomers/Immigrants/Refugees Individuals who have a history of

mental health or addiction

LGBTQ Racialized Persons Low-income individuals Persons from Northern Communities Persons from Small Communities Other target groups

(Please Specify: __________ )

B. Please indicate how you will be affecting the target groups:

7

I will be hiring the above selected targeted groups. I will be selling my product/service to the selected target groups. I will be hiring and selling to the selected target groups. Other (please specify):

6. Focus Area(s):Please check the three (3) main focus areas that apply to your Social Enterprise: Arts and Culture Child Care Employment and Training Environment Education Food Health

Housing Law and Politics Newcomer Services Religious Social Services Youth Services Other (Please Specify):

7. Other Grants, Awards, Loans and investmentsIf you are seeking and/or receiving funding from another source, please list it below. If you are not currently seeking and/or receiving funding, please indicate.

Name of Funder(s):

Type of Funder and type of funding (grant, loan, investment, etc):Federal government Provincial government Municipal government Private for-profit Private non-profit First Nations Band or Council* Other (Please Specify)

8

Total $

*For all funds disbursed by a First Nations Band or Council, the applicant must have an accompanying letter of support.

9

Social Enterprise Description

1. Date Social Enterprise Registered (if applicable): (MM/DD/YYYY)

2. Will someone be working in the Social Enterprise full-time during the course of the SENO program? This individual will be responsible for participating in the required activities and training of the program. Yes NoPlease Specify:

Please provide a simple and brief description (200-300 words maximum) of your social enterprise (Please see Social Enterprise definition on page 4).

Describe the business areas in which you see yourself needing the most support in (i.e. monetary support, mentoring, networking, etc.).

10

What have you done to develop your Social Enterprise (e.g. time, money, assets, partnerships)

11

Loans & Grant Request Form In the space below, request the loan and grant amount that is required to aid you in starting your Social Enterprise. It is a requirement of the SENO program to apply for both a loan and grant.

Loan Request Amount: (Maximum Amount $10,000 from SENO)

Grant Request Amount: (Maximum Amount $5,000 from SENO)

Start-Up FundsUse the following chart to identify and evaluate some items you will need to start your Social Enterprise (please attach additional information if required on a separate page).

Item Cost PurposeEx. Lawnmower Ex. $200 Ex. To help get started in

provided services for the community.

Total amount of dollars required to start up your social enterprise: $ 12

SOCIAL ENTERPRISE BUSINESS PLAN TEMPLATE

Business Plan forSocial Enterprise Name

123 Business StreetThunder Bay, ON P7B 2A1

Phone: 555-1212Fax: 555-1213

Email: business@hotmail.comWebsite: www.business.ca

Prepared by: A. SampleDate

This Sample developed by

13

14

Table of ContentsExecutive Summary............................................................................................14

Business Description...........................................................................................15

Social Enterprise Mission Statement...................................................................15

Management.......................................................................................................15

The Industry........................................................................................................15

The Target Market...............................................................................................16

The Competition..................................................................................................16

The Suppliers......................................................................................................17

Marketing Strategy..............................................................................................17

Pricing.................................................................................................................18

Operations...........................................................................................................18

Start-Up Costs.....................................................................................................20

Equity Investment................................................................................................20

Project Your Sales...............................................................................................20

PROJECTED CASH FLOW-3 YEARS................................................................21

PROJECTED INCOME STATEMENT-3 YEARS................................................21

PROJECTED BALANCE SHEET-3 YEARS........................................................21

APPENDICES.....................................................................................................21

Appendix A – Resume.....................................................................................21

Appendix B – Inventory List (example)............................................................21

Appendix C – Source Info Stats Canada (example)........................................21

15

This is an outline of the business plan. Familiarize yourself with the content in each section. As you work through the business plan, delete data in each section, and then add your business information. This process usually takes about 4 weeks! Good Luck and Happy Business Planning!

Executive SummaryThe executive summary is the first part of the business plan. However, it should be written when the business plan is complete. It should be concise and to-the-point. The executive summary should capture the outside reader without repeating the plan. It should also include a table of uses and sources of funds. Below is an example.

Include the following: Business description and who owns it. Why are you unique? Market you are targeting and how. How much money do you need for start-up? Where do you plan to get it? How much money will come from each source? Projected sales for year 1, 2 and 3

Uses of Funds Sources of Funds Equipment and Software $0 Cash Equity $0Inventory $0 Loan $0Other Start-up Costs $0 PARO Loan $0Working Capital $0 Total $0 Total $0

16

Business Description Name of business, owner, legal structure (sole proprietor, partnership, and corporation), and location. Describe your business, its services and/or products, why it is unique.

Social Enterprise Mission Statement This section should consist of two or three lines describing the main aims of the business, its philosophy and what specifically categorizes it as a social enterprise.

ManagementThe management section of the business plan should include key experience and education of the owner and key personnel that are assets to the business.

(See Appendix A for Resume)

The IndustryThis usually consists of secondary research (found in books, papers, or websites). In other words, information that is already prepared for you). What are the most recent trends (for example, aging population) in this industry and how will they affect your business? Make sure that you always source ideas and quotes either as footnotes, endnotes, or in the written text. Use numbers or statistics wherever possible.

Ask yourself these questions: Is there already an industry for your business? What changes, if any, have taken place in this industry in the past few years? How will these changes affect the way you will run your business?

17

The Target Market Who will be your customer? Use secondary and primary research. Complete a survey questionnaire (50 to 100 respondents). There is a sample survey on this

disk in an attached file and in your binder. Analyze results. Put copy of survey with actual results in percentages, as an Appendix. Speak to the results and how they will impact your business in this section. Combine this information with statistics from secondary resources, such as the Community Profile found at www.thunderbay.ca and relate to potential sales.

For example--There are X number of people from the ages of 17 to 39, living in Thunder Bay Metropolitan Area. The Thunder Bay Community Profile states that the average person spends X amount of dollars per year on X product/service. This gives a total potential market of $X.

Results from our survey suggest that the majority of people in this age group, presently shop for your product/service at this place and that place. Your business hopes to capture X% of potential sales in the first year, which is approximately $X.

Most people (X%) surveyed said that quality service and expertise were more important decision making factors for purchase than cost. Your business of business will capture a better share of the market by providing a high end product, concentrating on friendly and fast service and by keeping up to date on new technology in our field.

The CompetitionSWOT Analysis- point form in a table is quick and easy. How will you capitalize on your existing strengths? How will you address your weaknesses? What are the gaps in the market of your product/service that competitors are not addressing? What are your biggest threats (competition, economic conditions, etc.)? Write a sentence or two before or after the table, as an overall comment to complete your analysis of findings.

18

Strengths (internal)

Weaknesses (internal)

Opportunities(external)

Threats (external)

The SuppliersOften you may think you can purchase a product, but when you inquire you may be surprised. The minimum order in one particular colour, for example, may be quite expensive.

In this section, outline from whom you will purchase your raw materials. What is the address, terms, minimum order, payment method and freight costs that this business offers?

If you are starting a service-based business, outline what resources you will need and where you will get them.

Marketing StrategyThis section of the business plan allows an individual to explore specific areas of marketing tools at specific times of the year and their costs. The marketing strategy should be for 1 year. For example:

Date Activity CostSeptember Business Cards

Trade Show Booth$20$300

October Ad in The Post $100

November Ad in The Chronicle Journal $150December Ad Bag $250JanuaryFebruaryMarchAprilMayJune

19

JulyAugustTotal $820

PricingIn this section, outline the costs of running your business and the profits you will generate.

Keep in mind the following: material cost, labour cost, overhead costs, plus the profit you will make in the first part of starting your business.

Adjust to market. Fee for service-Hourly rate includes overhead and profit margin, plus you add direct

costs. For overhead costs refer to your “Income Statement” Expense total.

Operations Staff: Who will work – does this contribute to your Social Enterprise? (I.e. employing individuals with disabilities) If not now, when will you hire? In other words, where will your business be financially when you do?)Hours of Operations: (When will you be open-seasonal, summer hours, etc?)Licenses: (Which one will be needed?)Insurance: (Where will you buy it from, how much will you need, what kind)Methods of Payment: (Cash only, Visa, MasterCard)Guarantees: (Will you offer any?)Return Policy: (Will there be one?)Bookkeeping: (Who will be responsible and when?)

20

SENO Work PlanPlease complete the work plan below based on your Social Enterprise. *If you have already accomplished a milestone: input the achieved result, describe the activities used to accomplish it, when it was completed, and the output (performance indicator).

Expected Results(What do you want to accomplish)

Activities (how will you accomplish it)

Timelines Performance Indicators(How will you know you’ve accomplished what you wanted to)

Complete Business Plan Work with PARO staff, conduct market research, gather financials… April 30, 2016 Business plan completed and ready to implement.

21

Start-Up CostsCapital Costs- detailed description of items, for example, equipment, vehicle…and give cost of each item.Other start-up costs- for example, telephone hook-up, advertising, licenses; office supplies…give costs for each item.

Item/Product Price

Equity InvestmentThings you bring to the business, not cash, for example a computer already purchased. What is the fair market value?

Project Your Sales Consider your sales for each month. Sales will be low for the first few months until you are established. In addition, consider seasonal fluctuations common to your type of business. Consider how many clients you can anticipate for each month. Estimate the approximate sales from each customer.

# of Customers X estimated Sales Revenue per customer = Total Sales

22

PROJECTED CASH FLOW-3 YEARSPROJECTED INCOME STATEMENT-3 YEARSPROJECTED BALANCE SHEET-3 YEARS*PLEASE CONTACT SENO STAFF FOR FINANCIAL DOCUMENT TEMPLATES IF YOU DO NOT HAVE THEM ALREADY*

APPENDICESAppendix A – ResumeAppendix B – Inventory List (example)Appendix C – Source Info Stats Canada (example)

23