Starting Your Own Company This Summer
By Marc Belaiche
Setting up your own company for the summer can be a fantastic learning experience that is both challenging and rewarding.
It takes the right kind of person to take initiative, get organized and be successful in business. Are you one of those people?
This article covers some information you need to know if you’re thinking about starting your own company for the summer
Do Something You Love
Sell a product or provide a service that you are genuinely excited about. If your heart isn’t in it right from the start, your passion will quickly fade. Choose a product that you think people can really use or a service that is needed in your area. Whatever it is, make sure it’s something you will really enjoy doing.
Make a Business Plan
A business plan is a document that describes your product or service, your goals, your target market, the rates you will charge and other key information. This plan should give a detailed summary of how your company will be rolled out. Your business plan should be three or four pages.
Decide on Timing
When will your company begin operating? When can you start to provide your product or service? The sooner you start planning for your company to begin operations, the better off you will be.
Consider Financing
Will you need any cash for your company, such as for equipment or supplies? If so, how will you finance it? Can you ask family or friends for money? Will you need a bank loan? Find out about grants or subsidies that the government (municipal, provincial or federal) may offer for start-up operations or youth-run business. Keep your initial costs as low as possible so you have less to pay back later.
Ask Questions
Talk to people who run or have owned a summer business before. What did they like or dislike about their experience? What worked well? What would they do differently?
Plan Sales and Marketing
How will you market and sell your product or service? Will you need business cards, flyers or brochures? Is it best to market your product or service online or by referral?
Let as many people as possible know about your venture as early as you can. Most start-up businesses rely on referrals from family and friends to get the business going. Use free or
low-cost online tools, such as Facebook, to market your company. If you’re not good at selling yourself, get some sales training.
Find Your Competitors
Research the industry. Who are your competitors? How much do they charge for the product or service? How will you set yourself apart from them?
Think about Staffing
What if you get too busy to handle everything on your own? Will you need to hire others to help you? Who will you hire, how will you find them, and how much will you pay them?
Stay Organized
Tally up the number of days you have to produce revenue during the summer. Plan your days, weeks and months ahead of time in order to earn as much as you can.
Set up an Accounting System
Set a budget for your company so you can measure your results. Keep all your receipts for everything you spend money on for the company. Answer the following questions:
- Will you need a bank account for your business?
- How will you invoice your customers?
- How quickly will your clients need to pay you?
- Will you accept credit cards, cash or cheques (or all three) as payment?
- How much credit will you provide to your customers?
- How and when can you get financial information, such as financial statements, accounts receivable listings, and so on?
Key Points to Consider
Here are some key points to think about before you plan your summer business venture:
- Is the product or service something that people need, want or can use?
- For how much will you sell your product or service?
- If you’re selling a product, who is supplying the product to you? Is the supplier reliable?
- If you’re selling a product, how will you handle any returns?
- Would you be better off with a partner to help you get things off the ground?
- Where will your company be located? Can you be based from home or will you need space to store your inventory?
- Will you incorporate the business?
- Do you need insurance for the product or service you will sell?
- Do you want to create a website? What do you need to get it up and running?
- How can people contact you? What phone number, email address and other contact information will you provide?
Winding down
Some people shut down their business at the end of the summer, while others keep it going part-time during the school year. Think about what would work for you. Here are some questions to ask yourself:
- What will happen to the company at the end of the summer?
- Will you continue it part-time through the next school year, or will you wind it down?
- Can someone else manage it for you if it continues to grow once the summer is done?
Running a company can be fun and can earn you enough money to get you through the next school year. Before you start your own company, make sure your heart is fully into it, keep things simple, and keep your costs as low as possible from the very beginning. Good luck! CO
Marc Belaiche, C.A., is President of TorontoJobs.ca, an Internet recruitment business and recruiting firm (www.TorontoJobs.ca).