As you start on your path toward entrepreneurship, one of the first big steps is securing the financial foundation for your venture. It's all about tapping into personal savings, considering business loans, and maybe even chasing after a start-up grant.
Alberta's got your back with a solid support system. Let's explore how you can fund your dreams, get some great mentorship, and plug into the local business scene. Ready to make it happen?
Building your business nest egg
One of your first steps as a business owner is to secure the financial resources that will get your venture off the ground. This is called “raising capital,” You need capital to cover costs such as buying equipment, marketing your business, and operating until your business starts bringing in revenue. There are many ways to raise capital.
Use your personal savings
This can involve dipping into your savings, using credit cards (responsibly!), or even taking on a side hustle to generate additional income. It's a great option if you're just starting out or have relatively low initial costs. A few things to think about:
- Full control—Financing your startup with personal savings allows you to maintain full control over your business decisions without outside influence.
- No repayment—Unlike loans, you don't have to repay personal savings, which means you avoid debt and interest payments.
- Risk—The main risk is that you’re putting your own money on the line. If the business fails, you could lose your personal savings.
Get a business loan
Loans are a common way to finance a business. The main advantage is that you keep full ownership and control of your company. The downside is that you will have to make regular repayments with interest, which can strain your cash flow.
In Alberta, you have access to many resources for getting a loan. Here are a few:
- Traditional financial institutions like banks can provide you with a loan and other financial services.
- Alberta Treasury Branch (ATB) is a government-owned financial institution that offers a variety of loan options for businesses at different stages.
- Business Development Bank of Canada (BDC) offers loans, investments, and advisory services tailored to small and medium-sized businesses.
- Futurpreneur Canada offers financing (as well as mentoring and support tools) for young entrepreneurs.
Apply for a grant
You might decide that applying for a business grant is your best option. A grant is free money that you don’t have to pay back. Winning one can boost your credibility, making you eligible for other types of financing, such as loans.
However, grant competitions can be fiercely competitive. They will take up a lot of your time as you put together a strong proposal that shows your business’s value.
Several grants are available for specific types of businesses in Alberta:
- The Aboriginal Business Investment Fund supports Indigenous entrepreneurs.
- Alberta Business Grants lists various technology and agriculture grants, including the Métis Entrepreneurs’ Assistance Program, technology grants for up to $10,000, and agriculture grants up to $250,000.
- Resources and grants for women entrepreneurs can be found through the Canadian Trade Commissioner Service.
Find other types of support
Alberta offers many other resources to support entrepreneurs. These include programs available through post-secondary institutions and programs available to businesses in your city or town.
Post-secondary institutions
Many Alberta colleges and universities have business incubation centres, which are designed to nurture and support start-up businesses. For example:
- The Mawji Centre for New Venture and Student Entrepreneurship at the Northern Alberta Institute of Technology provides a vibrant ecosystem for aspiring entrepreneurs.
- The University of Calgary's Centre for Entrepreneurship and Innovation teaches students the skills to recognize opportunities, embrace challenges, and build the foundation to start a business.
- The University of Alberta’s Entrepreneurship Resources offer helpful programs, services, and other resources that support all levels of the entrepreneurial process.
These programs can provide your business with:
- Co-working space, which is an affordable workspace where you can collaborate and network with other entrepreneurs.
- Mentorship from experienced business advisors or industry professionals.
- Workshops and training to help you develop business skills, such as marketing, finance, and an ability to deal with legal matters.
- Funding opportunities, such as internal grants or connections to investors who can provide funding
Municipal programs
Many Alberta municipalities offer grant programs, workshops, and other resources specifically tailored to small businesses. These can be great sources of seed funding, which is a small grant to support your business’s development or marketing initiatives.
Depending on the program, they may also be able to help you develop a sound business plan. Some municipalities offer networking events that connect you with other entrepreneurs and potential customers.
Visit the City of Calgary's Economic Development office to learn about the many programs and resources for small businesses. The City of Edmonton also has a great deal of support for your business. Check your local municipality's website for similar programs.
Alberta's wealth of funding options—from personal savings and business loans to competitive grants—supports every stage of your journey. Explore these valuable resources to make your mark in Alberta's vibrant business community.