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Lesson 5 of 5Entrepreneurship: From Mindset to Venture
Unit 2 · Lesson 5 of 5

Funding, Launching and Selling Ethically

Fund the venture from the supports in your community, launch it and track progress against your KPIs, and sell with honest claims, clear prices and respectful, accessible customer service that turns complaints into loyal customers.

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Key things to remember

  1. 1Community supports include savings, family and friends, school or community grants and competitions, youth entrepreneurship programs, crowdfunding and mentors.
  2. 2Borrowed money must be repaid; grants and prizes usually come with conditions on how they are spent.
  3. 3After launch, track cumulative KPI results against targets and change the plan when a number falls behind.
  4. 4Ethical selling uses honest claims, clear prices and a posted refund policy, and never uses pressure tactics.
  5. 5Accessible customer service lets people with disabilities shop with the same ease and dignity as everyone else; Ontario's AODA requires it of organizations.
  6. 6Complaint steps: listen, thank, apologize, ask, fix, follow up, record.

Leila's plan says she needs $1,250 before her first market. She does not have that much. Very few new entrepreneurs do, which is why knowing where to find support matters as much as having a good idea. Once the money is in place, the real work starts: launching, watching the numbers, and treating every customer so well that they come back and bring their friends. This lesson covers all three, because a venture that is funded but sells dishonestly, or sells well but ignores customers with disabilities, will not last.

Supports and Funding in Your Community

Funding is the money used to start and run a venture. Supports include funding and also help that is not money, such as advice and space. Young entrepreneurs usually combine several sources. Each has a cost: money you borrow must be paid back, and grants and prizes come with rules you must follow.

  • Personal savings: your own money. No one to repay, but you carry all the risk.
  • Family and friends: a gift or a loan. Write down the amount and the repayment plan so no one is confused later.
  • School or community grants and competitions: money you do not repay, usually won with a pitch or an application, often with conditions on how it is spent.
  • Youth entrepreneurship programs: some governments and non-profit organizations run programs that offer young people training, mentoring and sometimes start-up money. Search your area's youth employment or small-business centre to see what is available.
  • Crowdfunding: many people each give a small amount online, often for a reward such as the product itself. Platforms usually require an adult to run the account for a student.
  • Mentors: experienced people who give advice for free. A local business owner or a family friend can save you from costly mistakes.
Where start-up money comes fromDebt (borrowed)Must be repaid withinterest, but you keep fullownership.Bank loana fixed amount repaid ininstalmentsLine of creditborrow as needed, up to aset limitSupplier creditbuy now and pay the supplierlater, e.g. in 30 daysFamily and friends(loan)flexible, but put the termsin writingFuturpreneur Canadanon-profit offering start-uploans and mentoring to youngentrepreneursBDCBusiness Development Bank ofCanada, a federal Crowncorporation that lends tobusinessesEquity (ownership)No repayment, but you giveup part of the ownership andprofit.Personal savingsyour own money invested inthe ventureFamily and friends(shares)money in exchange for partownershipAngel investorsindividuals who investearly, often with adviceVenture capitalfirms that invest large sumsin fast-growing venturesEquity crowdfundingmany small investors eachbuy a shareGrants and awardsNo repayment, but you mustqualify, often compete, andmeet conditions.Summer Company(Ontario)provincial program: start-upmoney and coaching forstudent venturesOther government grantsfor set purposes, e.g.hiring or trainingRewards crowdfundingbackers pre-pay for aproduct or a perkPitch competitionscontests that award cashprizesFamily and friends can lend money (debt) or buy a share (equity). Either way, put the terms inwriting.
Fig 1Financing sources grouped by what they cost you: debt must be repaid, equity gives up ownership, and grants come with conditions.
SourceAmountWhat it costs Leila
Personal savings (summer job)$500Her own money at risk
Loan from her aunt$250Repaid from sales by the end of the season
School venture competition prize$500Must be spent on equipment and market fees
Total funding$1,250Matches the start-up budget exactly
Grad Gear's funding plan. The total equals the $1,250 start-up budget from the last lesson.
VideoWatch for the trade-offs between savings, loans, investors and grants; the examples are American, so look for the Canadian supports in this lesson.Watch on YouTube

Launching and Tracking Toward Your KPIs

Launching means opening for business: the first market, the first post, the first sale. Leading the venture after launch means checking your KPIs regularly and adjusting when a number falls behind. Leila updates her dashboard after every market. After market 2 her repeat-customer KPI was below target, so she started handing out a card good for $5 off a second hoodie next season, for a team or sibling. Because the card is a perk for next season, none was redeemed this season, so it does not change this season's profit. Track cumulative numbers (the running total so far) against the season target.

AfterHoodies sold (running total)Percent of 80-hoodie targetAction taken
Market 11822.5%Added a size chart sign to the table
Market 24455%Started handing out next-season second-hoodie discount cards
Market 36378.75%Passed break-even (50); posted customer photos
Market 482102.5%Target beaten; thanked customers online
Grad Gear's launch tracker. Final profit before one replacement hoodie: 82 × $20 − $1,000 = $640. After the $25 replacement: $640 − $25 = $615, still above the $600 target.

Selling Ethically

Ethical selling means persuading customers honestly, so they buy because the product truly meets their needs. It protects your reputation, which for a small venture is everything: one unhappy customer can tell a whole grade. It is also the law. Canada's Competition Act makes false or misleading claims to customers illegal.

AEthical sales strategies
  • Honest claims: "80% cotton, 20% polyester", not "100% premium cotton" if it is not
  • Clear prices posted on the table and the order form
  • A refund and exchange policy shown before the customer pays
  • Letting customers take time to decide
  • Real deadlines only: "orders close Friday because printing starts Saturday"
BPressure tactics to avoid
  • Fake scarcity: "only two left!" when there are twenty
  • Hidden fees added at the last moment
  • Inventing reviews or before-and-after results
  • Pushing a customer who has said no
  • Fake countdown timers on the order form

Respectful, Accessible Customer Service

Customer service is how you treat people before, during and after a sale. Accessible customer service means making sure people with disabilities can shop with you as easily and with as much dignity as anyone else. Ontario's Accessibility for Ontarians with Disabilities Act (AODA) requires organizations to provide accessible customer service. Even a student pop-up shop can follow its spirit with simple habits like those below.

  • Speak directly to the customer, not to the person with them.
  • Welcome service animals and support persons.
  • Keep the space in front of your table clear so someone using a wheelchair or walker can reach it.
  • Use a large, high-contrast price sign, and be ready to read prices and sizes aloud.
  • Offer more than one way to order and pay: in person, online form, cash, card or e-transfer.
  • Ask "How can I help?" rather than assuming what someone needs.

Complaints will happen. Handled well, a complaint can turn an unhappy customer into a loyal one. Follow the same steps every time: listen without interrupting, thank them for telling you, apologize for the problem, ask what would make it right, fix it quickly, follow up to check they are satisfied, and record what happened so you can stop it from happening again.

A complaint is free feedback
When one customer's print peeled, Leila replaced the hoodie on the spot, thanked him, and found a press setting she had rushed. The replacement cost her $25 (the variable cost of one hoodie), which brought her season profit from $640 down to $615, still above her $600 target. That customer ordered two more for his hockey team.

Worked examples

Reveal one step at a time and try to beat it to the next line.

Example 1
Check that Grad Gear's funding plan covers its $1,250 start-up budget, and say what Leila still owes at the end of the season.
Example 2
After market 3 Grad Gear has sold 63 hoodies against an 80-hoodie target. Find the percent of target and how many more hoodies are needed.
Example 3
A customer emails that her hoodie's sleeve seam split after one week, and she is angry. Handle the complaint step by step.

Where marks get lost

  • Borrowing from family without writing down the amount and repayment date, which leads to arguments later.
  • Spending grant or prize money on things its conditions do not allow.
  • Setting KPIs before launch and then never checking them, so problems are spotted too late to fix.
  • Using fake scarcity ("only two left!") or a hidden fee to close a sale, which breaks trust and can break the law.
  • Talking to a person's companion instead of to the customer, or assuming what help someone with a disability needs instead of asking.

Flashcards 9

Funding
Grant
Crowdfunding
Mentor
+ 5 more

Practice

1
Match each funding source to its main drawback.
Personal savings
Loan from family
Competition prize
Crowdfunding
2
A venture needs a $900 start-up budget. The owner has $350 in savings and wins a $300 grant. How much more funding is needed? Give a whole number of dollars.
$
3
Grad Gear sold 82 hoodies against an 80-hoodie target. What percent of the target is this? Give your answer to one decimal place.
%
4
Which is an ethical sales strategy?
5
A customer who is blind arrives with a guide dog and a friend. What is the most respectful approach?
6
Put the complaint-handling steps in order.
  1. 1Follow up
  2. 2Fix the problem
  3. 3Record what happened
  4. 4Listen
  5. 5Thank and apologize
  6. 6Ask what would make it right
7
What is the name for an experienced person who gives a new entrepreneur free advice and guidance?
8
After market 2, Grad Gear's repeat-customer KPI is below target. What is the best response?
9
Which statement about Ontario's AODA is accurate?

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