Category Archives: Uncategorized

18Dec
The Ultimate Startup Gift Guide

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Hello,

Are you looking to kick-start your startup? PME wants to ensure you are equipped for the startup life. We have compiled the ultimate guide for you and all of your ambitious friends this holiday season.

We all have that friend who is anxiously planning for the future and foresees his startup making millions of dollars. In order to get the ball rolling, check out Ted Talks and partake in all of their wisdom. With enough information, you will surely conquer all the VC’s in Montreal. However, when you are at that big meeting, ensure that your pitch makes the cut by reading our guide to creating a perfect pitch deck beforehand. For all you data junkie out there, ensure you understand your metrics and watch your e-commerce soar!

We will be taking a holiday break at ProMontreal Entrepreneurs and will return with more exciting events and news in January. Wishing you a relaxing and restful holiday.

P.S. Please refrain from using plastic straws in your eggnog

5Dec
Main and Local: Souvenirs that don’t suck

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main and local, souvenirsIf you have ever been on vacation, you will notice that most souvenirs available are all the exact same generic product. Not something you would want to bring home to your friends and family. A PME funded business, Main and Local put a stop to these awful souvenirs and created souvenirs that do not suck. Literally, their tagline is “souvenirs that don’t suck”. These souvenirs are made from a local perspective and offer a good laugh by incorporating the culture of the city into their products. Now the company has expanded outside of Montreal and has started selling in popular cities across the country.  Co-founder David Prince shares with us some advice on what he has learnt along the way. He also shares with us how he and his co-founders pivoted their company into Main and local.

  1. What inspired you and your co-founder to start main and local? Why souvenirs?

The idea came when we worked on cruise ships and wanted to bring back souvenirs for friends and family. We realized there really was not much option and we did not want to bring back souvenirs that sucked for our loved ones.

  1. How does main and local differentiate from any other souvenirs?

We like to make fun, clever and unexpected products. Our tagline is “souvenirs that don’t suck” and we stand by that. We try to come up with creative ideas for each product we make. Its not only for tourists, it is actually mainly for locals. We make souvenirs but from a local perspective. For example, for Montreal we make things about construction, poutine, smoke meat etc. Tourists understand as well.

  1. Did your company go through any major changes/Pivot?

We went through so many major changes and pivots. It actually took us about a year of brainstorming until we came up with the perfect business idea. We came up with so many different things and finally we settled on licensing for local businesses. Basically the idea was  we would make a product for a local business, they would sell it in their restaurants, and we would sell it in our stores. We pursued that for about 6-9months until finally we realized there were too many issues around it. It did not seem like a real scalable model. Once we realized that, we decided to pivot. So, instead of creating a product about la banquise why not just do poutine and sell it around Canada. Pivoting was a hard decision to make but we were surrounded by the right people who pointed us in the right direction.

  1. What were some of the biggest challenges you faced as a founder and how did you overcome them?

At first, I was very hesitant to quit my steady job and I had many responsibilities at the time. The biggest challenge was leaving that comfort zone and jumping into something completely new. From a financial perspective its hard to just make that kind of jump so make sure you have some sort of savings before you do take the risk because it will drain your bank account. It is definitely a risk worth taking. Being a founder is the coolest thing in the world. You’re not on the sidelines, your future is in your hands and it’s an unreal experience. It is an experience I would never be able to get working for somebody else. You call the shots and the risk is worth it.

 

  1. What is the number one advice you would give to other entrepreneurs like yourself?

Everyday is a roller coaster. It is filled with many highs and a lot of lows. What is important is that you don’t get overly excited when your business does hit a high point because things can quickly change and hit a low point. It’s also important to not let the low points get to you either. Be ready for anything. Its mentally exhausting but you need to adapt and expect it to come. Not a lot of people are able to handle this kind of uncertainty, its really tough. However, as long as you stay focused and persevere, you will be able to make through anything.

  1. What do you think is the most important thing every founder should be aware of?

Expect that it’s going to be really hard. I think most founders might underestimate how much work and dedication that goes into creating a business but it’s really tough. You wont get very far if you expect being your own boss means you can be doing 10 hour weeks and relaxing at home. By being a founder, I’ve learnt so much its insane. I learn more in a week than I would have normally in a steady job. Not only that but you learn so much about yourself and your capabilities. It allows you to push yourself to limits you did not even know you had. Stop procrastinating taking the leap because the longer you wait the more responsibilities pile up. You just need to go for it.

 

  1. How has PME had an impact on your business?

PME is the best thing we have done in the business easily. I do not say this lightly, we really mean it they have been a tremendous help. From a financial perspective but they also gave us the validation that we were on the right path. I can’t say this enough, the mentors who have been helping us the past 4-5 years have been incredible. They would meet with us every week and help us make really big business decisions. These are entrepreneurs that have built multi million dollar companies and getting their feedback was crucial to our business.

Nothing ever goes as planned when starting your own business. There will be bumps in the road and you need to be ready for them. Your ability to deal with the high and the lows is what will allow you to make it to the finish line. The founders of Main and Local never gave up on starting their own business even if it meant they had to pivot. They had the right determination which lead them to creating the successful business they run today.

9Sep
ProMontreal Entrepreneurs

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8Jul
The Right Way to Do a Cold Call

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cold call, phone call
Cold calls often come with a negative connotation. However, when done correctly cold calls can successfully turn into lucrative business opportunities. As an entrepreneur you will have to make many cold calls, whether it be to a potential investor, supplier, distributor, etc. The goal of a cold call should not be to close a deal or get an investment. To the contrary, it should always be to open a line of communication with the other party. These 6 tips will teach you about the right way to do a cold call.

  1. Do your research-

Before making the call make sure you know as much about your prospect as you possibly can. If you are looking for an investor check to see if they have invested in other start-ups in the past, their interests, the industry in which they work, etc. In order to appeal to your prospect, this will help you frame your approach for the best outcome. This includes answering questions such as, what is the goal of the call? What can you offer the person at the end of the line? Why should they care? And why is your solution worth their time?
 

  1. Focus on starting a relationship-

Don’t sell anything, other than yourself, on the first call. The first call should be about the early building blocks of a relationship. This means that you should not be trying to get an investment. Making a good impression will be worth it down the road, even if you do not get the investment or partnership you desire. On this first call you should be introducing yourself and your business. Briefly explain why your business is worth the attention of this party, and work towards booking an in-person meeting. Describe your talents, ask questions, and more importantly, carefully listen to what the person on the other line is saying. They may casually mention things about themselves that will allow you to build better rapport down the line.

  1. Look for a second-degree connection-

Having a mutual acquaintance will help you with credibility. People are likely to take calls from others when they have been recommended by someone they trust. Prior to conducting a cold call, check your network to see if you know any of the same people. If you are on good terms with your mutual acquaintance, ask them to put in a good word for you. Also, ask people in your network if they know anyone offering what you are looking for. If you get to their voicemail make sure to mention referrals, as it is likely to lead to a call back for you.

  1. Get to the point-

Time is money. People are busy and usually have their days planned out. An unexpected cold call may interfere with what they have scheduled. Make sure you are efficient and quick to get to the point. Prepare your talking points beforehand, and address only the matters that will spark enough attention for a second meeting.

  1. Get to the second meeting-

Once you’ve shared enough information to pass the introductory stage, ask to book second meeting. If your prospect seems to have a busy schedule offer to email a slide-deck summarizing what you’ve just discussed until you are able to meet again.
 

  1. Keep records-

Document those you’ve called, for what reason, when you called, and how many calls have resulted in scheduled appointments. Doing so will not only keep you organized, it will allow you to keep tabs on cold-calling techniques have worked and which have not. Furthermore, a “no” from a prospect, can simply mean a “no” for the time being. This will let you know which prospects you can follow up with in the future.

Cold-calling can seem intimidating. But, if done right, it could lead to a promising partnership. Do not be discouraged with rejection either. Many opportunities can arise in the future with these same prospects, and you’ve also garnered many tools and lessons along the way. Just remember to be informed, quick, and efficient.

21Jun
The Importance of Emotional Intelligence

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intelligence, emotional In a room full of equally smart people the one who stands out is the one who appears as most interested. Emotional intelligence is probably one of the most underrated entrepreneurial skills. It was brought to mainstream attention by Daniel Goleman, in his book, Emotional Intelligence. It is the ability to identify, use, understand, and manage emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges and diffuse conflict. Technical skills and expertise is  the foundation of the product development stages. Conversely, a high degree of emotional intelligence is what will keep an entrepreneur’s company afloat. Networking, presenting, pitching, and working with others, all require a high level of emotional intelligence. Here are 3 important reasons why emotional intelligence is arguably just as important, if not more, than IQ.

  1. Building better relationships:

    The relationships you build will be the reason for profitable present and future opportunities. Relationships with business partners, employees, customers, and investors will drive the quality of work created, the workplace environment, and the appeal you have to potential investors and stakeholders. Building healthy relationships in the workplace means understanding the diversity in people’s behaviours, and adapting accordingly.

  2. Stress management:

    Emotional intelligence is said to moderate the relationship between mental health and stress. Being an entrepreneur isn’t the most stable of jobs, and the unexpectedness of it all can cause a tremendous amount of stress. People with high emotional intelligence can better reduce stress because of self-awareness. Goleman explains that self-awareness allows for people to identify the moment when stress is likely, and therefore calm-down before their stress becomes unmanageable. As well, empathy and social skills allows emotionally intelligent people to better communicate how it is that they are feeling and find solutions to such problems.

  3. Understanding your brand:

    Emotional intelligence is crucial for successful marketing. This is two-fold. For one, a marketer must be able to empathize with his target market. A person with high emotional intelligence will ask the right questions in order to understand the needs of customers. these questions relate to customer expectations, emotional factors that drive the need for the product at hand, and satisfaction that customers receive from the product. At the same time understand that your brand, must too, have its own emotional intelligence. In this day and age people define themselves based on the clothes they wear, cars they drive, the jobs they have, etc. It is the responsibility of the brand to represent its customers and adapt to the customers’ changing phases and behaviors.

Some can develop higher emotional intelligence through exercises and training. Google has even started giving emotional intelligence courses to employees. But let’s be realistic. For some it is just not that simple, and that’s perfectly fine. In such a case, entrepreneurs can benefit from partnering with individuals who have what they lack. It is important however to acknowledge that your IQ will only take you so far. At the end of the day, once you’ve developed a great product, what will draw investors, employees, and customers to your company is your emotional intelligence. You will have to communicate effectively with investors, overcome challenges and diffuse conflict in the workplace, and empathize with customers, all while managing your emotions, stress and other responsibilities. As the old saying goes, it takes something more than intelligence to act intelligently.

18Apr
The Challenges of Being a Social Entrepreneur

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social, entrepreneur
Let’s start off by addressing that being an entrepreneur is difficult. However, being a social entrepreneur brings about its own set of challenges and obstacles. It combines social impact with sustainable business growth. Social entrepreneurs are faced with having to solve or alleviate a real-world issue while also maintaining positive financial performance. . Here are  the two main challenges social entrepreneurs face. Though considered challenges, many have overcome them in the past.

1. Competing on prices while having enough money to make a social impact
In order to remain competitive, social enterprises need to take advantage of creative pricing strategies. Social entrepreneurs need to establish a pricing strategy that will consider price point, allowing for enough revenue to serve their chosen cause, without compromising their customers’ expectation of their product. Though social enterprises have to overcome additional challenges when pricing, they can use original pricing techniques that are not as readily available to other start-ups. Social entrepreneurs should strategically highlight their cause and mission. Socially conscious consumers who agree with this mission will be willing to purchase at a higher price point in order to support the cause. Furthermore, bundling will incentivize sales. Shoe company, Toms, has made great use of this. For every shoe sold, a pair is donated someone in need. In order to build and grow brand equity, social entrepreneurs should also look into certification. For instance, being certified as fair trade, or B Corp will help maintain a positive reputation and better positioning.

2.  Quantifying your impact
Measuring impact for social entrepreneurs can be complex. Not only do you have to establish metrics for your business performance, you have to measure your social impact to prove credibility, as well as attract investors and potential business partners. Impact investments are investments that not only yield financial return, but social and environmental return as well. With the rise of the number of social enterprises, credible organizations have developed frameworks to standardize the calculation of social impact. The IRIS Framework consists of an organization’s description, product description, financial performance, operational impact, and product impact. If your mission is to have impact on a global scale, The Global Impact Investing Ratings System (GIIRS) gathers a range of information with regards to company’s work, size, sector, and region.  These assessments are carried out annually and validated by the GIIRS.
Many resources are available to Montrealers looking to take a step into social enterprise. Luckily, numerous grants, and funding opportunities are available, that do not require giving away equity or paying back an investor. YES Montreal, Futurpreneur,  Quartier de l’Innovation and  PMEMTL  all offer workshops and/or grant opportunities for social enterprises in the city, just to name a few.

With millennials harnessing the wave of activism and social awareness, social entrepreneurship has risen for the past decade. They are working towards incubating ground-breaking innovations, alleviating life-threatening issues, and pioneering some of the future’s most resourceful projects. While it is true that many obstacles can interfere with business operations, the key is taking advantage of the resources available your given city and finding creative ways of overcoming these challenges.

13Mar
Ugo Smoothies

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13Mar
Jewish Businesses Changing the World

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12Mar
Jewish Businesses Changing the World

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18Feb
How to Read an Income Statement

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financials

For many new in the business world, reading an income statement can be a confusing and intimidating experience. However if you know where to look you will realize that it is not as intimidating as it may appear. Understanding an income statement is a very important skill to have for entrepreneurs as it aids with making sound business decisions. Basically, an income statement tells you how much money came into your company during a specific period, how much a business spent in order to generate income, and how much profit a business has after having paid all expenses. Here are a few points that will make income statements easier to understand.

  1. Income statements cover a period of time

Before you delve into reading the income statement, make sure to take note of the specific time period covered. Questions you should be able to answer for the said period include: What are the revenues of the company during the period? Have the revenues increased or decreased over the last few periods? What are the various components of cost? How profitable was the company during this period? What are the earnings attributable to a share or the Earnings per Share?

  1. Income statements follow a simple formula

Income statements may have slight variations, depending on the company. However, they all possess the same data. Essentially, total revenue, total expenses, and net income (Total revenue-total expenses= Net income). Additional information is simply added in order to give the reader a more detailed depiction of financial status.

  1. Don’t let the jargon throw you off

What can make income statements difficult to understand is wording. Keep in mind that businesses can use different words to describe the same concept. For instance, the term “sale” or “income” can be used instead of “revenue”. The word “expenses” can be used instead “costs.” “Profits” and “net income” are also interchangeable.

  1. Expenses are often split into different parts
Expenses tend to be broken down into components. Cost of Goods Sold is the direct cost attributable to goods sold. Selling, General and Administrative Expenses combines payroll costs, except for what has been included in labour costs. Depreciation and amortization are charges with regards to fixed and intangible assets that have been capitalized on the balance sheet over time. Sales & marketing, as well as Research & Development costs are also almost always included in income statements.
  1. Keep an eye for cash flow
Comparing an income statement to a cash flow statement is highly recommended. The reason for this is to see if the profits earned are supported by the cash coming into the company. High profits on an income statement paired with low cash flow can imply weak quality of earnings. Know your key drivers and manage them. Keep a careful eye on areas that affect cash flow: accounts receivable collections and inventory turnover. How are you doing compared to past performance and your peers? Watch key areas that affect profits, net and gross margins, labor and fixed asset utilization. Though this is more acceptable with start-ups since they likely have to make substantial inventory investment before collecting from customers, this is something that should improve over time.
  1. Take note of the profit margin and earnings per share

The profit margin will give you an indication of the percentage of revenue that is left for shareholders after expenses are paid. Earnings per share will tell you the portion of earnings you would be entitled to if you owned one share.

 

Income statements can be very intimidating if you are a first-time business owner. If you are an entrepreneur needing help with your financial statements, remember that some aspects of running a business are not worth saving money on. There’s no need to turn yourself into a CPA, but you must be able to read financial statements, talk with better qualified financial people and assess your company’s performance.This will lower your stress level and get the job done efficiently.