Going it alone
Financial Post
Success for a small business comes from finding a niche in the marketplace and filling it with a service or products that consumers and other businesses want. This month, the Canadian Youth Business Foundation (CYBF) is saluting four young people who have established growing businesses by following that basic dictum.
Shashi Behl and Lila Lewandoski of Calgary, for instance, provide specialized clothing for youngsters and adults that protects them from the harmful ultraviolet rays of the sun while they are playing or working outside. George Weetman supplies specialized maps to hikers and outdoor adventurers in British Columbia from his Vancouver location. And, in the east, Joe Smythe offers sports equipment for walkers, runners, tennis and squash players, swimmers and outdoor enthusiasts from his store in St. John's, Nfld. All four of them had help getting their businesses going with loans from the CYBF.
Ms. Behl and Ms. Lewandoski have won the CYBF's Best Business Plan for their company - The Body Blocker Co. The Saskatchewan natives and best friends decided several years ago, while returning from a skiing trip to British Columbia, that as they both wanted to run their own business, they should work together, recounts Ms. Lewandoski.
At first they thought about producing a line of women's clothing. "But we really didn't have a background for that and we didn't want to get caught up in the fashion industry," adds Ms. Behl. That's when Ms. Lewandoski recalled her days as a swimming pool lifeguard and how she used to think about the need to apply sun blocker cream to protect her skin from the potential of the sun's rays to cause skin cancer. She also thought about her 15 nieces and nephews who like to play outdoors. >From that grew the idea of specialized clothing.
Mr. Weetman, on the other hand, got the idea for his Beta Digital Mapping business out of frustration with the kind of maps that were available when he went skiing or hiking in the B.C. back country. It won him the CYBF's Most Innovative Business Award for 1999. "I always felt there was a need for better recreational map products and I had seen some better maps made in Europe," he recalls.
The rapid advances in computer technology had provided the mining and forestry industry with more useful maps for exploration use and he was sure those techniques could be applied to recreational purposes as well. The new maps use orthotopography, which combines the contour lines found on typical topographical maps with aerial photography. That way a skiier or hiker can quickly determine his location by finding the trees or rock formation shown on the map.
Only 20, Mr. Smyth's Sports Tech business has grown so quickly in its first two years, that he has moved into a 3,000 square foot shop near the Avalon Mall after he had to twice renovate its previous 800 square food location. Naturally, he has won the CYBF's Fastest Growing Business award.
Mr. Smyth decided to specialize in his four sports categories because there already were plenty of all-purpose sports stores in the Newfoundland capital. He has also started a subsidiary business, Technical Sports Marketing, which distributes sporting goods throughout the Atlantic region.
Due to the specialized nature of his shop, Mr. Smyth has to undertake aggressive marketing and promotion to attract business. "We're not a general store and the regular Joe wouldn't know about us. So we sponsor teams and tournaments. And we have displays at the four major fitness centers in St. John's." Despite its spectacular growth, Sports Tech will stick with the sports lines it now carries, he adds.
Moreover, he declares that he went into the sports business "not because I'm a sports nut, but because I've always been interested in being in business. I've tried university for a semester but it wasn't for me. I like working for myself; I don't mind the long hours." As for the future, Mr. Smyth plans to keep thinking only a year ahead. He has no long-term plans in mind.
In addition to the start up loans the CYBF provided these four and many other aspiring young entrepreneurs, the Foundation also ensures they all have mentors to help them through the tough periods any new business encounters.
The CYBF was founded in 1996 by CIBC, Royal Bank and the Canadian Youth Business Foundation. The CYBF raises money through corporate donations that it then can loan to entrepreneurs under the age of 30, who present a solid business plan. So far, more that 40 corporations support the Foundation, which has raised $10 million. It would like to double that amount over the next couple of years, so it can expand into 60 communities across the country from the 28 it now serves.
Breaking into the apparel business meant a steep learning curve for Ms. Behl and Ms. Lewandoski, who have university degrees in business and economics. "We had to learn all about the physics side of UV rays and also how to protect against them," Ms Lewandoski admits. They also had to learn about the production and marketing of their products.
It took several years to get all the ingredients of the business plan together, but the two women now have several products under their trademark name - the Body Blocker. There's a two piece suit that looks like what a cyclist would wear and single piece outfit that resembles a scuba diving outfit. "It's pretty sporty looking and once kids put them on, they like wearing them because the fabric is sleek and cool looking," Ms. Behl explains. The suits cover the body to the elbows and knees, which greatly reduces the amount of skin that has to be slathered in sun blocker cream. The women design the suits and contract out the cutting and sewing of the material. They offer a catalog through their 1-800 number as well as a Website at www.bodyblocker.com.
Mr. Weetman started his business out of his home two years ago, selling his maps through outdoor recreation stores. His first one was for the Whistler area, which is well known internationally for its downhill ski slopes. It also has plenty of good back country adventure as well.
Now he's also doing contracts for businesses that need specialized maps, including search and rescue organizations and recreation tour companies. Most of Canada has already been digitally mapped, Mr. Weetman explains, which means he could provide maps for much of the country if there was a demand. "However there's still a lot of terrain in B.C. to finish." He also does work with another firm with customers in the mining and forestry sectors.
What's so special about his product is the way the aerial images and contours are overlaid with the trails and other information. "That adds the pertinent detail for the hiker or skier," he remarks. "You can pick out individual trees and large boulders."
His maps can be used by anyone involved in outdoor sports and can also be tied into Global Positioning System units that help people determine their exact location with the aid of satellites. In fact, he's sure that he could even produce maps that would be valuable to sports fishermen.
The award winners are typical of the imagination, determination and drive of Canada's young business owners. And, as it expands its reach, CYBF hopes it will be able to help many other young people start their own businesses in the years to come.
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