Business Start-ups for Students

I am a student studying Physics at Sheffield University, and after graduating my intention is to move into the business world. Although I find my course interesting – if challenging at times – I was very keen to gain some experience of working in a commercial environment whilst studying, and was determined to progress with an idea that I had during my first term at uni.

Since I was young, I have always had different ideas or inventions, which have given my family and friends a few laughs over the years. When I came up with an idea which made them all sit up and listen, combined with the odd comment of ‘it might just work’, I was inspired to delve more deeply into starting my business.

I prepared my very basic business plan, and highlighted the key areas which I needed to explore, to see if my idea had legs. It involved the creation of an on-line store offering a range of gift packs suitable for university students. It was therefore necessary for me to speak to a number of website creators, at the same time as researching products at various trade shows, to ensure that our offering was what I wanted – good quality, a little funky and something I and my friends would love to receive, to remind us that those at home hadn’t forgotten about us!

I first started working on this idea over the Christmas vacation (when I should have been revising!), and it was tough at first as I was excited and wanting to focus on Student Gift Packs, but obviously my exams had to come first. Or maybe not, looking at the results!
I remember finishing one morning exam, and rushing to the station to get the next train to Birmingham, so that I could visit the Spring Fair at the NEC. I think it’s fair to say that my time management skills have improved hugely, through necessity rather than choice.

Sheffield offer their students the opportunity to discuss any enterprise with a business advisor, which I did in the early days. We went through the plans and ideas that I had in mind, and he was able to guide me with regard to the legalities of a company set-up. I have notified the Inland Revenue that I am operating as a sole trader, but have also registered the company, which will protect the name, and to give me the option to trade as a registered company in the future.

Everyone I have spoken to has confirmed how important it is to keep control of the financial side of the business. This is particularly critical because as a new business, I have to pay against a pro-forma invoice for my initial order to any supplier, which means that I am immediately into negative cash flow. The good side of this business though is that people will pay me as part of the order process, which means no hanging around for 60 days waiting for customers to settle their invoice. All monies are transferred through Paypal, which obviously is a cost that I incur, but gives customers the confidence of knowing that their money and credit details are protected.

So I hear that students are currently in the middle of a wonderful, three month summer vacation. Or in my case, not! I spent the first week of the holiday climbing Mont Blanc with one of my flatmates, and since then it’s been work every day. I have been visiting suppliers to look at the various products that they offer, negotiating prices, considering different ideas for packaging, photography, marketing etc. And I’ve loved every minute of it.

I have realised that the most important thing in business is the building up of relationships with people you are working with. So many people from friends and acquaintances, suppliers, businesses and university connected organisations have given their advice and help, and are really keen to help this project succeed.

My top tips –

Be prepared to work hard both at your uni work and your business – that might mean missing a few good nights out with your friends.
Talk to everyone about your idea – you will learn from every bit of input you get – even if you only learn that some people talk rubbish!
Take every piece of help available – speak to your uni and see if they have anyone whose brains you can pick.
Be prepared to invest. My website is the front of my business – it needed to be professional and attractive, and that didn’t come cheap.
Don’t be scared to ask for favours. As long as you’re not being demanding, most people will be happy to help you.
Only do it if you enjoy it.