Business during the epidemic: what startups Canadians are launching

Despite the country being in lockdown, Canadian entrepreneurs are starting new businesses. Some focus on issues directly related to the virus. Others had begun implementing business plans shortly before the pandemic started and couldn't back out. Still others believe that the new, challenging environment provides advantages for their startup.

Here are some examples.

Virtual Funeral Services

30-year-old Effie Anolik from Toronto has no experience in the funeral business. She worked at Shopify, an e-commerce platform, for four years. But when her father died two years ago, she was surprised that the funeral home offered no online services beyond a website.

"We had to go to the funeral home in person to plan the funeral and make a credit card payment. Even though we could have just paid online," Anolik said.

She decided that funeral homes needed new, consumer-friendly technology, and founded a company to create back-office software. But this month she shifted to interacting directly with clients.

Her new company, PlanaFuneral.com, offers a free phone consultation, followed by a range of services priced between $200 and $400. These services include:

• Customized "virtual funerals": organizing a turnkey event, sending invitations, and recording the online event;
• A slideshow or video about the deceased family member's life;
• Organizing an online meeting on the Zoom platform;
• Consultations with family and friends who may want to give a speech or make a presentation;
• Live streaming of the burial so family and friends feel included in the event.

In the few days since founding the company, Anolik has met online with several potential clients, including someone from New York who couldn't arrange a cremation. She plans to help them and also expects an increase in demand, emphasizing that her small team can handle it.

But she's not alone in the market. Some Canadian funeral homes have also started organizing virtual memorial services during the pandemic. Nevertheless, Anolik is convinced that her business has a future, even when people can gather again to say goodbye to a deceased person.

"The need for virtual meetings will still remain to bring together all family members, for example, those who couldn't come due to long distances or high costs."

She intends to expand the range of services, such as organizing the closure of bank accounts and social media profiles, as well as subscriptions and contracts.

Telemedicine for Pets

Kerry-Lynn McAllister from Toronto is turning her love for animals into a new business. As one of the founders of the popular financial product comparison site Ratehub.ca, she launched Pawzy.co last fall, an online resource for pet health and wellness.

Now she's launching Pawzy Telehealth, a new business direction that provides a system for virtual veterinary visits.

"Many veterinarians have had to reduce hours and services to provide emergency care," McAllister said. "As a result, pets can't now get the same level of care they had before."

The app will be free for the first two months. After this period, each veterinary clinic will be charged a subscription fee of $99 per month.

In the next couple of weeks, McAllister plans to launch a more consumer-oriented service so Canadians can connect for free with any available veterinarian, not just their own, anytime from anywhere.

Food Delivery

Toronto chef Eric Rogers and his partner came up with Riverside Kitchen before the COVID-19 crisis — a ghost kitchen — a delivery-only service that would offer four types of menus through apps like UberEats, DoorDash, and SkipTheDishes.

A ghost kitchen is essentially a restaurant without tables, waiters, or diners. The main components of the business are food purchasing, preparation, and delivery. "We did a lot of research, and the numbers in the US showed that virtual kitchens or ghost kitchens are doubling their business volume every year," Rogers said. "It's one of the fastest-growing segments of the food industry."

They planned to launch in April but postponed their plans for a month due to the pandemic. Rogers and his partner were going to rent an industrial kitchen, but now they're confident they'll soon have other, cheaper options.

"Many restaurants will close. We've approached two landlords to offer temporary rentals for six months or a year while they find a new restaurant tenant. We're ready to pay for utilities and some extra on top, but not the full cost. This will be beneficial for both parties," Rogers believes, "at least with us they'll be able to stay afloat."

Now he and his partner, Josh Meer, are preparing samples of their dishes to photograph for publication in the apps. These include handmade sandwiches, barbecue, South American dishes, and family dinners.

"Of course, we often asked each other, 'Are we crazy?' But delivery was already growing exponentially, and now it's the only dining option if you don't have time or desire to cook at home. No one can go to a restaurant."

He's confident that the trend towards home food delivery will grow, as it will take some time before people want to venture out to crowded places again.

Advertising Agency

You can never guess the perfect time to launch a new advertising agency, given that the industry is already overcrowded and very competitive. But Beverly Hammond and her four co-founders in Toronto had no idea that a pandemic would hit just as they decided to open "Broken Heart."

"We started working on the project in the fall," she said. "That's when my partners, some of the most talented people in the country, creative directors from well-known agencies like Cossette and BBDO, gave notice to their bosses. It might have made sense to turn back once it became clear that the pandemic could deal a crushing blow to the economy. But it was impossible — legal agreements had already been signed. The train had left the station. We were already racing."

By the time the company officially launched on March 27, employees had to wear gloves and masks and keep disinfectant wipes on hand to sign the shareholder agreement.

The agency has already arranged collaborations with clients such as Kids Help Phone, Everest Insurance, and Kruger, a paper products company.

"We now have eight new business opportunities. That's a lot for normal times, let alone during an epidemic! It's inexplicable, but it's true," Hammond said. "The firm even signed a contract with a new client on Easter Sunday. It seems there's no distinction between weekdays and weekends now."

Despite this promising start, Hammond acknowledges that it's a scary time. In addition to the five co-founders, four employees were hired, and everyone needs to be paid. But as an experienced entrepreneur, Hammond is confident in her abilities: "I've lived under such pressure before, like anyone who's just starting a business. Eventually, everything will work out."