Starting Up Your Own Business
Takes A Lot More Than Lemons
A recent day of sunshine, and above normal temperatures, brought out more than an early Spring show of flowering trees and bushes. I also spotted the first lemonade stand of the season. It was a sophisticated affair with its own banner and proud, if somewhat less than busy, young proprietor.
The fact that kids today still set up lemonade stands, with all the other distractions in their lives, is a real testament to the allure of owning your own business. It says something about our entrepreneurial spirit.
Of course our erstwhile young capitalist was probably violating a dozen or so local, state and federal regulations….everything from not having a permit for the banner to displaying merchandise on the sidewalk. My guess is the wooden crate didn’t meet BOCA building codes. Come to think of it, I’m not sure he had the required number of parking spaces. He probably didn’t have a business license, fire inspection, health inspection, occupancy permit or tax ID number. On the plus side, the location was close to home, which really cut down on his commute time.
It’s easy when you’re eight years old to turn lemons into lemonade and manage to squeeze out a few hard earned dollars. It’s not as much fun when life-long dreams of owning a business turn sour.
The fact is that it has become increasingly difficult for average citizens to open a small retail business. New business startups are risky ventures with plenty of pitfalls along the way. Yet small business has been the backbone of local economies and, for those willing to work hard, starting a small business has helped many to realize The American Dream.
For someone with the dream of owning their own business, a retail incubator program can help reduce the risk of failure. It helps provide training, advice and resources to a fledgling entrepreneur. It can help reduce the cost of getting into business and help in securing loans.
St. Charles could benefit from attracting a greater number of small retail tenants to help fill older commercial storefronts. Residents have expressed a keen desire for a greater variety of stores and product lines to choose from. While efforts should continue to attract larger retail developments and life-style centers, I have proposed that we also consider the benefits of funding a retail incubator program to help launch new startup businesses.
The idea got a good reaction from my fellow Council members and the Mayor at the last council Work Session. City employees will be looking at similar programs in other communities and coming back to the council with more specific recommendations and suggested budget. While I can’t say what might be in a final draft, I can share with you some of the suggestions I’ve offered.
Applicants for assistance would have to submit a detailed business plan for review. A great group to do that, would be our own Economic Development Commission. The Commission could require applicants undertake a series of mini-courses to improve their skills in necessary areas.
These mini-courses or lectures could also be offered to existing businesses. Topics might include such necessary skills as:
Managing Employees
Preparing Business Taxes
Point Of Sale Inventory Management
Customer Relations
Setting Up An E-Commerce Web Site
Marketing A New Business
We could also tap the expertise of local business professors, the EDC and Chamber of Commerce to provide guest lecturers for a small stipend or honorarium. University students might also pitch in and help develop marketing and advertising plans, design web sites, business logos, interior displays and attractive signage for a new business as a class project. The City might also seek the assistance of a retired businessperson to help provide ongoing regular contact and counseling with each new business.
Of course, a major part of starting a new business is to secure the necessary startup capital. Conventional and small business loans may be available and our role would simply be to assist an individual with the necessary paperwork. But we may also find there is a need to provide some creative bridge financing or low interest loans.
While other communities have tied their incubator programs to a single building location with multiple tenants, in order to share resources more readily, I feel advances in telecommunications and networking computer systems might allow a multi-site approach. This would be especially beneficial if landlords would agree to work with the City and offer discounted rent. In return, the City could offer facade improvement grants or long-term monies to convert interior space.
The residents and taxpayers of St. Charles will benefit from a retail incubator program, through increased shopping variety, shopping opportunities closer to home (thus saving gas), sales taxes and retail dollars remaining in the community, and neighborhood stabilization by filling up empty storefronts.
If a retail incubator program gets off the ground, perhaps some “former” lemonade stand owners will get to realize the dream, the reality and the pride that comes from owning their own business.
As a small businessman, I know just enough to respect the personal commitment and sweat equity it takes to succeed at any business. My wife likes to quip that being self-employed means you get to decide which fourteen hours of the day you’re going to work. Maybe I need to build a lemonade stand.
