In EDA’s third event, members learned how to build a financial blueprint for their startup business as well as how to pitch their idea.

 

Peter Albert and Jordan Elias (Senior Manager and Manager at EY) led the first part of the event. They delivered a technical presentation about the basic financial knowledge that budding entrepreneurs should know in regards to running a business. Members learned the key differences between two different ways of operating a business: a sole proprietorship and a corporation. For example, a sole proprietorship can be personally liable for the amounts owed by their business, while a corporation has limited liability. Members also learned the different ways of raising capital, which are through equity and debt, and the benefits and drawbacks that are associated with each method. Moreover, students were given real-life examples of a balance sheet and an income statement. It is important to know how to interpret the contents within these basic financial statements, so as to better understand the business’ financial position and performance.

 

Our two guest speakers highly recommended entrepreneurs to hire an accountant at the end of a business period, since it can be challenging to prepare reports on one’s financial information. Next, Bill Jouni (CEO of LavaClip) gave tips on how to pitch a brilliant idea. He described the steps that he took to prepare for his pitch on Shark Tank, a TV show where entrepreneurs pitch their ideas to highly successful tycoons, in the hopes of securing an investment and a partnership.

 

In addition, Bill Jouni discussed intellectual property, which is a highly relevant topic for budding entrepreneurs who are searching for ways to protect their idea. Intellectual property encompasses a provisional patent application, a trademark, and a non-disclosure agreement. The workshop ended with a pitching competition with judges Bill Jouni, Peter Albert, and Kitty Yung (Business Consultant at Vaughan Enterprise). Contestants presented a variety of ideas including translation services, an after-school program, and a food business.

 

Through this workshop, attendees were able to gain a better understanding of the financial aspect of their business, as well as learn how to effectively pitch and protect their business idea.