OUR HISTORY

In May 2003, The Business Services Division (BSD) was created by combining the Business Advisory    Services and Project Development  Departments into one division. The Entrepreneurial Training and  Business Development and Business Outreach components were already in The Business Advisory Services Department.  Later, The Research Unit was added, "and voila".  The result is a comprehensive outfit, catering to the full and complete development of entrepreneurs and business enterprises.

We cater to existing entrepreneurs/small business owners as well as potential entrepreneurs/small business owners, including school children, throughout the islands of The Bahamas.

We conduct Town Meetings, conduct courses, seminars, workshops lecture series.  We provide data.  We work with individuals and groups.  We’ve established or  facilitated the establishment of Small Business Associations, Cooperatives, Business Associations, Investor Groups and Craft Associations.

Whatever needs to be done to put people in business, and/or keep people in business, the BSD, has done and will continue to do.  We’ll do whatever it takes, within the laws and protocols.  If we don’t have the answers, we’ll direct you to the answers.  If we can’t do it, we’ll direct you to those who can.  

Because our business is: BUILDING SUCCESSFUL BUSINESSES.

TECHNICAL ASSISTANCE

Through BAIC, enterprising Bahamians can   access technical assistance from the following international organizations:

Caribbean Technological Consultancy Services (CTCS)

CTCS (an agency of the Caribbean Development Bank) is a network that assists small and medium sized businesses with project implementation, training, computerization, and development of business plans.  CTCS assists users in finding solutions to practical problems encountered in production enterprises.

Common Mistakes

Launching a small business can be risky and success is not always guaranteed. Businesses are most vulnerable to failure during the early years of trading, with 20 per cent of new businesses folding within their first year and 50 per cent within their first three years. These figures should not scare you off, but should prepare you for some of the challenges entrepreneurs face when starting a business. With hard work and an awareness of the issues, a new business can be a great success. The below listed are four areas that new start-up business owners should look out for.

Poor or inadequate market research

Research and planning are vital to ensure that your business idea is viable and that your pricing is both competitive in your market place and provides an adequate return. A common misconception is that entrepreneurs who have failed simply lacked sufficient funding or did not put the right team in place. However, many fail because they have not spent enough time researching their business idea and its viability in the market.

Lack of in-depth market research

Lack of proper market research is one of the key problems for new businesses. It's easy to get carried away with a business idea and set up a business without testing its viability. Accurate market data will help prevent over-optimistic forecasts.

Keeping your business ideas to yourself

Failing to share your business ideas with people you trust means that you will miss out on objective feedback. Brainstorm with other colleagues to give you valuable perspective. Note down any good ideas you get from brainstorming and use them when developing your business. If you want to keep your ideas confidential, consider using a nondisclosure agreement, also known as a confidentiality agreement. This is a legal contract between you and another party not to disclose information you have shared for a specific purpose.  

Not knowing your clients or marketplace

If you do not complete adequate research, you are in danger of selling to the wrong people or of not understanding your marketplace. To avoid this:

• use information, such as free government data or your own network of contacts
• carry out field research to explore customers' profiles and discover buying trends
• swap ideas with people in the same sector

Business Plan

With business failing at an alarming rate the need has never been greater to start off on the right foot with a clear understanding of exactly what you hope to achieve and how you will do it. A well thought out and carefully structured business plan is the key to the long-term success of any business. Whether you are just starting a business, buying one already established or perhaps in need of extra finance for expansion you will need a business plan.

 
Understanding the Need for a Business Plan

Reasons for a business plan

Your reason for crafting / developing a plan will be different for each situation:

If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed.
If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success.
If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed.
If you are applying for one of the many grants available.

Who will read your plan?
 

When you begin to compile a business plan you must always remember who the plan is for. Just as an author must always remember who will read his books so you must remember who will read your business plan. With this in mind you must present your plan in a clear and logical format. This will enable the recipient to achieve a clear understanding of your business and make a decision based on the information you have supplied.

Your business plan will benefit the various types of people who will all be using your plan as a basis for making decisions:

• your bank manager
• alternative providers of finance
• friends and colleagues who will invest in your business
• you and your co-workers who will be running the business and using the plan on a daily basis.

 
Tips for Funding

Start up funding is critical to the success of any business. While some companies can be started on a shoestring budget, most require some investment by the owners. There are several kinds of start up funding available.
The most common is the entrepreneur using their own savings to get their business going. Or using cash from their credit cards or from a home equity loan. The benefit is that the entrepreneur doesn't have to worry about investors looking over their shoulder or disappointing friends and family who may have provided the funds. The disadvantage is that if the business fails, the entrepreneur's home may be at risk or savings lost.

A small business loan is often used to purchase equipment, supplies, and inventory to get the company going. If the entrepreneur has a good credit history and a relationship with a bank that does business loans, the money can often be obtained with a simple application form. Unfortunately most banks require that unless the loan is personally guaranteed the business has to have been operating profitably for at least two years. Banks look at two factors: the risk in not getting the principal paid back and whether the company can generate enough funds to pay the monthly interest. Bankers are not interested in the growth potential of the company.

Angel investors or private individuals who invest in start ups, is another alternative. Angel investors usually invest in high tech companies that have the potential to quickly grow and return that investment at the end of a three to five year period with at least a ten fold return. In other words if the angel invests $100,000 in year one they expect to get $1,000,000 at the end of three years. Private investors sometimes work together in groups called Angel Networks. You can find Angel Networks in your area by talking to your nearest BAIC Office, local chamber of commerce, or searching through local newspapers, and of course through search engines.

BAIC Start-Up Kit