This lecture covers various business structures, including the difference between for-profit, non-profit, and alternative paths to entrepreneurship. Discover the right questions entrepreneurs must ask before committing to building a business. What are the requirements and resources you need to have in place to get started? What are the types of financing―and how do they work and why do they matter to different kinds of entrepreneurs?

1. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
“
08 October
2014
Different Types of Entrepreneurship

2. Developing talent • Growing ventures • Opening markets
Visit
us
at
marsdd.com
Different Types of Entrepreneurship
Entrepreneurship 101
P R E S E N T E D B Y
A L L Y S O N H E W I T T,
S E N I O R F E L L O W, S O C I A L I N N O V A T I O N
& D I R E C T O R , S I G @ M A R S
A N D
K E R R I G O L D E N ,
P A R T N E R , J O L T F U N D A N D D I R E C T O R ,
U R B A N F L A T S T O R O N T O
O C T O B E R 2 0 1 4

3. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
“
What we will cover today:
§ Self Assessment
§ Corporate Structure Opons
- Connuum from Charity to For Profit
§ Types of Businesses: both tradional and social ventures
- Consulng
- Services
- Products
- The Sharing Economy
- Scale and Profiles for Business Types
§ Forms of Financing
§ Sources of Financing

4. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SELF ASSESSMENT
pg 4
What is my business structure?
- For profit?
- Not-­‐for-­‐profit?
- Co-­‐operave?
- Hybrid
Why do I want to start this business?
- What is my movaon?
Do I have the skills/ aptude to be an entrepreneur?
- Am I comfortable taking risks?
- Is this something I feel I have to do?
What resources do I need?
- Basement or corporate office?
- Shared spaces/incubators?
How do I fit into the rest of the world?
- Is my product and/or service unique?
- Have others tried this before?

5. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
Return
Con0nuum
Grant
Funded
Non-­‐Profit
(Charity)
RETURN
Social
(Charitable)
Financial
(Commercial)
Tradi=onal
Business
Revenue
Genera=ng
NFP
(Social
Enterprise)
Social
Purpose
Business
Blended
Value
Space
Social
Ventures
Coopera=ves

6. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
pg 6
BLURRING OF THE SECTORS

7. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
September
2014
SOCIAL ENTERPRISE

8. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
September
2014
SOCIAL PURPOSE BUSINESS

9. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
CONSULTING
• Key Characteriscs
– Mulple parcipants, diverse focus,
variable size, leverage core assets to
provide access to market and advice
• Examples
– Consulng: McKinsey, Bain, Deloi9e,
IBM, Hatch
– Aperio, Purpose Capital
• Benefits & Risks of Model
– Low capital costs and minimal set-­‐up
– Leverages specialized knowledge/
experience
– Liability insurance, can be difficult to
build/scale

10. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SERVICES
• Key Characteriscs
– Speciality business serving consumers or other businesses
• Examples
• Benefits & Risks of Model
– Online sofware as a service
– Infrastructure costs may be high: inial development, servers, support, staffing

11. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SERVICES
Tradional Courier Services

12. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SERVICES
Social Enterprise Courier Services

13. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
PRODUCTS
pg 13
• Key Characteriscs
– Tangible offering (consumer products, pharmaceucals, equipment or devices)
• Examples
• Benefits & Risks of Model
– Higher development costs; markeng
– Sales and distribuon model
– Producon costs high, outsource?
– Potenal for scale – huge
– Trends: collaborave consumpon, wearable technology

14. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SOCIAL ENTERPRISE PRODUCTS
pg 14

15. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SHARING ECONOMY
pg 15

16. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
EMPLOYER BUSINESSES – 1.1M strong
pg 16
Source:
Sta=s=cs
Canada

17. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SCALE AND PROFILE OF BUSINESS TYPES
• Lifestyle business
– Part-­‐me Yoga Instructor
– Ofen a hobby of the owner
• SMEs – “engine of the economy”
– Founded 2009, employs 5+
– Profitable, Growth 10-­‐15% per year
• Growth Companies -­‐ Hootsuite
– Founded 2008, 500 employees and growing
– 10M+ users, including 744 of Fortune 1000
• VC/PE study esmated 13,000 high
growth companies in Canada
pg 17

18. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
FORMS OF FINANCING
• Forms of Financing
– Bootstrap -­‐ self-­‐fund and reinvest all profits for growth
– Crowdfunding – for product pre-­‐orders, films, games, projects
-­‐ Crowdfunding – tailored for causes and charies
– Fundraising -­‐ grants/ foundaons/ government funding/ corporate sponsorship/
members (co-­‐ops)
pg 18

19. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
September
2014
DEMONSTRATE IMPACT

20. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
DEBT AND EQUITY
pg 20
• A quick primer on debt versus equity:
q Debt:
• gets paid back first, before any dividends get paid
• secured by assets (company, your personal)
• once debt is repaid (with interest of course), lender gets nothing else
q Equity:
• never has to be “repaid”
• keeps on “paying” forever
• you now have an investor partner who is in this, like you, for the long
haul

21. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
MOBILE APP EXAMPLE
You need $40K to build/market a new iOS app
You have a grant for $10K so funding needed is $30K
Profit Debt
50:50 Equity
Low on chart $10K lender loses $20K* partner loses $25K
you get $0K & owe $20K you get $5K
Featured appis $30K lender is even+ partner loses $15K
you make $0K you make $15K
Top of Chart $200K lender is even+ partner makes $70K
you make $170K you make $100K
Granng agency reports your success!

22. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SOURCES OF FINANCING
pg 22
The
turkey
principle

23. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SOURCES OF FINANCING
• Angels (aka high net worth individuals)
– Generally like to invest in areas that they have worked in or are comfortable with
– Can add valuable hands-­‐on experience
– h9p://www.angelinvestor.ca/
• Accelerator Programs
– Supported by angels and VC funds
– Impact8 for social ventures
• Venture Capital Funds
– Different funds invest at different stages in the growth of a company
– Most funds also specialize in type of investment
– h9p://www.cvca.ca/

24. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
pg 24
SOCIAL FINANCE

25. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SVX – SOCIAL VENTURE CONNEXION
pg 25

26. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
SOURCES OF FINANCING
• Proof of Principle / Idea to Innovaon
– www.ResearchNet.ca
– www.nserc-­‐crsng.gc.ca/index_eng.asp
– www.cmf-­‐fmc.ca/funding-­‐programs
– www.oce-­‐ontario.org/programs
– h9p://coralcea.ca/
• NRC -­‐ IRAP
– h9p://irap-­‐pari.nrc-­‐cnrc.gc.ca/main_e.html
• Foundaons:
– Ontario Trillium Foundaon -­‐ www.trilliumfoundaon.org
– JW McConnell Family Foundaon -­‐ h9p://www.mcconnellfoundaon.ca/en
– Gates Foundaon – www.gatesfoundaon.org
– Imagine Canada -­‐ h9p://www.imaginecanada.ca/node/22
pg 26

27. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
September
2014

28. Developing talent • Growing ventures • Opening markets
Our Future Ma9ers
HOW TO CONTACT US:
Allyson Hewi9, ahewi9@marsdd.com
Twi9er: @AllysonHewi9
Kerri Golden, kgolden@marsdd.com
Twi9er: @KerriGolden
THANK YOU!
B E C A U S E T H E F U T U R E M A T T E R S
September
2014
INNOVATION