Launching a new website

This email comes from a mom who wants to start an online store. Here’s her story: “If you Google ‘starting an online boutique’ you can imagine how much stuff comes up. I have no idea which sites are legit and which isn’t. I really just need some information on where to begin.”

Start at the beginning - What do you want to sell?

Online sales are extremely competitive. Price matching is just a few clicks away. You need to consider how your site will differentiated from the rest of the pack. What is your niche? How will your website service the market in a way no other does. Having a clear vision will keep you on track and allow you to put together a complete business plan.

Get educated - Take a course

Once you have determined what your business will be, a course at a local college can be very beneficial. You will learn the basics of web design and ecommerce and the behind-the-scenes activities such as accounting and purchasing that will be needed to make it all run smoothly. One course may not give you all the answers but it’s a great place to start. And a great place to network!

Good luck getting started.

A Robeez case study

Lately, I’ve received a number of emails from moms wanting to know how to get their idea off paper and into production. I can best answer this question by sharing with you what I did.

A couple years ago Industry Canada did a case study on Robeez. This is a very detailed document and contains some valuable information about how I got started. I think it will be useful to many of you that are just getting started. Have a look at the case study.

One of the mom’s emails also asked specifically about patents. She states, “Almost a year ago I had an appointment with a patent lawyer to discuss and idea I had to improve baby bottles. He relayed all the steps I would have to take and the fees I would endure. This of course scared me off. I am thinking of just producing a small lot of bottles and trying to distribute them.”

First of all, this is what patent lawyers do. It may have scared you off but at least now you have a complete understanding of what is involved. Second, manufacturing a prototype or small production run may just be the place to start. This allows you to do some market research. Talk to moms who will give you honest feedback. Talk to store owners who you would like to carry your product and see if they feel it is a viable business idea. Armed with their feedback, you can make an educated decision about whether to take the chance and move forward with your business.

Thanks to Rochelle, Jennifer & Karen for their questions.

The power of mentoring

I love reading emails from moms who have loved Robeez from the start! Thank you to Karen from Toronto for her recent email. Here’s a quick run down on Karen’s business: She has worked out the start of her business plan but needs to find someone with expertise in injection-molded plastics. In short, she’s looking for a mentor.

Benefits of a mentor for me

As a new entrepreneur, having a mentor can be extremely beneficial. I had a mentor from the very early days of Robeez. Now, I spend a few hours each month mentoring new entrepreneurs to pass on what I’ve learned.

• Been there, done that – A mentor can be great to discuss long-term business plans. They have the experience of their successes and challenges and can help guide you in the right direction so that you don’t have to learn everything from scratch.
• “Am I crazy?” – Sometimes you just need some feedback. You have a new opportunity that initially sounds like a winner but you can see potential for disaster. A mentor can be that person that you call just to bounce ideas off of and ask, “Am I crazy?”
• Staying on track – With a new business, it’s easy to get very wrapped up in the day-to-day details. But it’s important to take the time to focus on what’s driving your business’ growth, which in the early days is revenue. A mentor can help keep you accountable.

What to look for in a mentor

• It’s important to find someone that you are comfortable talking with. Your personalities need to click for the relationship to be successful.
• For most mompreneurs, the best mentor will have a broad range of experience in business, entrepreneurship, and success balancing work and life.
• Your mentor doesn’t necessarily need to have a background in your industry. Most business concepts can be carried over from industry to industry. However if you can find a mentor who has grown a business similar to yours, all the better!
• You need someone who won’t let you off easy. If your mentor always thinks everything is “great”, they could be doing you a disservice. By challenging ideas or decisions where appropriate, a good mentor can help you think outside the box.

How to find a mentor

• First and foremost, just ask. You’d be surprised how willing business people are to share their experiences. I don’t believe in sitting at the sidelines. If you really want to work with someone specific, make a phone call and ASK!
• Look into mentorship matching programs. I work with the FWE (Forum for Women Entrepreneurs) where I have been matched with the founders of a children’s apparel company. The FWE works specifically in the Vancouver area but there are local business groups in each region with entrepreneurship programs. Google “mentoring” and you find thousands of results.
• Check with local government agencies. The Government of Canada site has a great network of information, articles, and resources for business. Here’s a specific article on resources for finding a mentor.

Hiring your first reps

You have developed a great product. Now how do you get it into the hands of consumers? I believe your distribution strategy can make or break a company’s success. Familiar with Robeez early sales model, Sharon sent me this email:

I am really intrigued by the model of your early sales force – that is moms and grandmas who were enthusiastic to introduce Robeez to their local markets. I am finding myself now in the position to look for a sales rep for our products. I have talked to sales reps that represent many lines, and I'm also talking to a mom who is very enthusiastic, and in a good position to introduce our products to Alberta, Saskatchewan, and Manitoba.

When you hired your "mom sales reps", did you pay them the same commission as multi-line sales reps (I think it's 10-15%)? Since they represent only your line, are they considered your employee or self-employed? Did you cover any expenses, such as travel, business cards, samples, etc? Were they allowed exclusivity in their areas, and if so, what conditions did they have to meet, such as sales volumes, or number of stores? And at what point do you terminate a sales rep - aside from obvious reasons such as non-performance, what happens if their market becomes saturated and they can no longer achieve their sales goals? If I had someone work hard for me for, say 5 years and helped me get to where I wanted, but now there's no new stores I wish to be in and sales volumes are at a plateau, and they don't want to leave, I don't know if I could have the heart to let someone go! Did you restructure their position within the company?

It looks like this model of sales reps worked for you when you were getting established. What were the drawbacks of this model, and what would your advice be for anyone wishing to follow?

The benefits of hiring moms to represent your baby products are obvious. They can speak genuinely about the benefits of your product from first-hand experience. The benefits of hiring established sales reps are their experience and existing contacts with retailers. Finding someone with both can be difficult. From my experience, I found moms to be the better route. Although they may not have sales experience, they make up for a lot just with enthusiasm. Multi-line reps often have a large number of products and are not able to focus a great deal of their energies on developing distribution. Here’s how we built our sales team at Robeez:

• Commission – At Robeez, all reps earned the same commission, whether mom or multi-line.
• Employment – Reps were self-employed, rather than hired employees.
  Expenses – Reps covered their own expenses associated with selling Robeez, however samples, print materials, and business cards were provided.
• Exclusivity – When my first rep started with Robeez, her territory was “unofficially” North America. As time went on, we needed more reps to service the number of accounts and territories were broken down. The territory size then needed to be manageable and financially viable for the rep.
• Termination – Along the way, I did have to let reps go who were not performing. One misconception I want to clarify: just because a territory is saturated with retail accounts, does not mean that the rep is no longer useful. Good reps call on accounts regularly to present new collections, merchandise displays, and suggest tips or tools for increasing sales in-store. They have a relationship with the store that goes well beyond getting the first order.

My advice for you as you hire your first sales rep: don’t rush. Take your time to find the right person for your line. I believe that when you meet the right person, everything will just click. Happy hiring!

Manufacturing: Do-it-yourself vs. outsourcing

Tracey sent this question recently:

Why did you decide to hire seamstresses and manufacture Robeez yourself rather than look for a shoe/leather apparel manufacturer and have them made?

Good question! When I first started Robeez, the reason I decided to coordinate manufacturing myself was to save money. There were initial start-up costs and higher price per item associated with manufacturing companies. I knew that in order to make my home business profitable, I needed to operate on a lean budget. So I purchased a leather cutting machine and cut the leather pieces in my garage. I then compiled all the notions needed to make a pair of Robeez and sent the items to home-based seamstresses. I received the sewn shoes and I would then flip the shoes, clip the threads, and package them in bags. This process was certainly labour intensive but it was far more cost-effective.

As time went on, we chose to keep the Robeez manufacturing operation in Vancouver. There were a number of reasons that guided this decision: 1) Quality. In-house production means we can keep tabs on the quality of the product distributed. 2) Turnaround time. Shoes can quickly be produced as needs, within a matter of days if necessary. 3) Lead time. When production is outsourced there are often long leads times between order and delivery.4) New designs can be introduced to the market with very short lead times.

Tracey also had a few more questions: Also, did you have to patent the design? I am being told that patenting a design in the fashion business is not possible. Nor will a NDA hold water when looking for a manufacturer and presenting them with samples. Was this your experience? I received the same advice when I explored the subject with a patent lawyer.

Characteristics of a mompreneur

I recently received an email from Rebecca, a new mom and aspiring entrepreneur. She has been interested in starting her own business for sometime now. Becoming a mom made everything click. She has a great business idea but is feeling afraid and insecure about taking the first step.

Here’s an excerpt from her email:
It is all so confusing. Apart from the initial fear and insecurities that scare you, it is the bigger picture, like this, that puts a damper on your ideas. "No materials; can't sew. Can't start a business then." The idea is then swept under the rug, and off I go making dinner. Until I get that feeling again, not to drop it.

I believe deep down, that I have a winner here. Something big and I have no idea where to begin or who to trust to share some of this information with to help me get in the right direction.

I think this a good time to reflect on what I think it takes to be a successful entrepreneur. I know there are loads of moms who have a great idea but don’t know where to start. And I also know that it’s not just the practical “how-to’s” but the larger issues like confidence and fear of failure. Here are the traits that I believe can make a difference.

• Optimistic – If you’re going to be successful, you need to believe you will be successful. An optimistic outlook will carry you through the ups – and downs – of life as an entrepreneur.
• Charismatic – You don’t have to be the most outgoing person in the world to be an entrepreneur. But when I meet someone who lights up when they speak about their company, I know they have what it takes to sell the idea.
• Resourceful – I believe learning is an ongoing process whether you are just starting your business or have been established for a decade. Market conditions will change, industry best practices will change. To keep up you need to find people in the know and ask questions.
• Thick-skinned – You have to prepare yourself for the fact that not everyone will love your idea. More often than not, Robeez have been well-received but I also got a lot of “no’s” along the way.
• Self-motivated – There will always be some tasks in your business which you prefer to do and others that you would rather pass on. There’s a lot of discipline involved in running your business.

Rebecca also had questions about manufacturing so I will cover these specifics here.

I also do not sew (never have). The idea I have in mind is not something I would necessarily be working with in my home. I would need someone else to be creating my vision. Who are these people and do they supply the materials? How does one find fabrics made of Lycra and cotton?

I can suggest a few potential solutions. The first would be to hand your idea to a product design and development company. They specialize in taking your idea and developing it for the marketplace. This is probably the best option if you are not necessarily interested in running a company. A Google or yellow pages search would be a good place to start.

If you want to be a little more hands-on, another approach is to hire a designer. A designer can take your idea and create a pattern. Using the pattern, they will develop a prototype and make adjustments from there. To find some with these skills, you could look for a local seamstress in the yellow pages.

For fabric suppliers, you’ll need to find a fabric wholesaler. They will be able to offer you a better price than local retail shops but you will likely need to purchase a certain volume to qualify. You could search online to find the best option or seek out a company using a fabric you like and find out who supplies their materials.

Hire staff or add a partner

This post is for all the mompreneurs who are expanding faster than they know what do! Nicole of Westcoast Baby writes: As our business has been rapidly expanding, we need to hire staff to help out. I was wondering if you brought on family or friends as employees and how you feel about this.

Hiring family or friends can be a double-edged sword. On the plus side, you know them. You know their strengths, have a clear understanding of their skill set, and enter with a level of trust established. But on the flip side, what if they perform poorly on the job? It can be more difficult to approach your sister or best friend than it is someone you don’t have a lengthy history with. And if things don’t go well this could damage your relationship long-term.

I can tell you that I have had a positive experience regarding the involvement of family at Robeez. In 1999, my brother joined the company as one of my business partners. Later, my husband joined Robeez as a sales rep.

When hiring your first employee(s), you need to consider the skill set you require. Right now, you are probably doing a little bit of everything from developing your website to packaging boxes. Do need to hire someone that packs and ships orders so you can focus on business planning? Or do you need some help with marketing? Perhaps a freelancer would be more appropriate than an employee. Take a look at your budget and your own strengths to determine what will work best.

Beyond the skills your new employee brings to the table, their personality will also have a impact on your company. The most important thing I can say about hiring employees: take the time to find the best fit. In a fast, growing entrepreneurial company, everyone needs to be a team player. Look for someone who isn’t afraid to jump into a wide variety of projects. Early on, I had an employee who was hired for marketing and customer service but if it was a busy day in packaging and we needed to get orders out, she was back there stuffing shoes and taping boxes.

From my experience, these are the key areas to focus on when hiring your first employees are communication and values. What values are important to them? They should be similar to your own. How do they treat coworkers? How do you expect them to treat customers? It’s important that whoever you hire, they need to complement you and your partner’s personalities.

And the second half of Nicole’s comment: You had mentioned that you brought on your brother and a third party to help with Robeez growth, was this complicated? We are currently a partnership but are interested in taking on a silent third party? Any advice?

I believe you need to equate adding a partner to your business to getting married. It is essential that you have the same vision for the future. Don’t enter into an agreement lightly. Be sure to involve legal counsel and draft a shareholders agreement to ensure everyone’s interests are protected.

Crafty advice

The following question comes from Joanne, co-founder of Krafty Kidz Creations, a collection of handmade children’s craft kits. Here’s her situation:

We just started in April this year, testing the waters to see what response we would get. The response has been huge and now I'm very intimidated. We too, don't have a lot of money and resources to get our business running at a higher capacity.

I have heard there are grants for women entrepreneurs but I can't find any information on them, except from sites that want a $400 registration fee to provide the information. Do you know what grants there are or where I can find the information without paying a fee?

I’m sorry to say I haven’t heard of any grant programs. I came across this thread on the subject.

I think you are going to need to look for other avenues of financing. I know this can be intimidating at first, so I encourage you to carefully consider where you want your business to go. I’ve mentioned them before: Women’s Enterprise Centre has a fantastic set of resources for women entrepreneurs.

And her question continues below:
Also, to date we haven't been purchasing our supplies from a wholesaler but from local discount stores instead. We don't have the volume to purchase from wholesalers. We have been told there is a minimum purchase of $500-$1500 depending on the wholesaler. Do you know of a way around this minimum volume?

There are few options I can recommend here:

• Shop around – There are likely a number of wholesalers providing craft materials in your region. I recommend contacting a number of different providers to find the products, prices, and financing that will work best for your business.
• Appeal to their softer side – Sometimes it just takes a little more background for the wholesaler to know you are committed. Talk to them, show your product, and explain your future plans. If they’re smart about customer service and you’re close to the minimum, they’ll get you now as customers before you grow.
• Find a partner – Network with other small businesses that need similar materials; perhaps a scrap booking company or a preschool. Partnering with another company allows you both to meet the minimums.

Building your business’s reputation

In the early days of Robeez, I remember telling people about my home-based business and getting puzzled looks in return. When you first your business, especially a home-based business, you need to build credibility. And this can take time. Here’s an email from a mom facing this challenge:

So this is my dilemma: My husband and I really need some business partners but our business is an at home based business and everyone is so leery of them, thinking they are "pyramid schemes.” Any advice on how to get the word our about the business and have people take a look at it?

My first question would be: why do you feel you need another business partner? Are you looking to share the workload or find financing? If you are looking to share the workload, you may want to consider hiring someone part-time or on a contract basis. Consider your skill set (and your husband’s) to determine where you need help. For example, I had experience in financial management but not in sales. So I hired a sales rep to increase distribution of Robeez.

If you are trying to find financing, you may need to consider other options. See my post “Finding the Money to Get Started” for more on this subject. I added two partners to the Robeez business in 1999, five years after I started. The business had reached a point where I could no longer manage it by myself. (Annual revenues were around $500,000.) I had about two or three full-time employees and a handful of sales reps but I needed to share the leadership responsibilities.

It’s difficult to recommend the best way to build your business without knowing more but here are a few more general tips I’ve learned over the years:

• Generate referrals through word of mouth – Provide happy customers with a means to refer your business such as a referral bonus or personal thank you.
• Find a mentor in your industry who can give you support – Find a local expert in your field who can offer their advice or experiences.
• Join a local networking group for your industry – Talking with people who are having similar experiences often provides clarity. For example, I am a member of FWE, a group for entrepreneurial women.
• Market yourself – See everyone as a potential customer. Always present yourself in a credible way. Voicemails, emails, anything you’re consumer “touches” is a reflection on your business.

I could write a book of all the tips I have. The more specific the question, the better I can answer it. Keep on writing. And don’t worry if you don’t see your answer posted yet. I take the question in the order they are received and will respond as soon as I can.

Can we build it?

The next post deals with regional vs. overseas manufacturing. Here’s an email I received recently:

We need more baby products with "made in Canada" and "made in USA” labels. My question for Robeez founder: How did you manage not to move offshore? Do you credit your success partly because your product was made in Canada? Did retailers care about it or not? What would you advise to business women who (or wants to) manufacture locally?

It is rare these days to turn over a label and read “made in Canada” or “made in USA.” Overseas manufacturing is definitely a reality in today’s marketplace.

I may sound like your mother but “if everyone jumped off a cliff, would you?” My mompreneur advice: don’t assume that because “everyone” is manufacturing offshore that this is the best option for your business, especially when you first start out. For Robeez, we have always maintained production of our shoes and booties in BC. Simply said, local manufacturing fit our business model and contributed to our success. We see a number of benefits to doing things this way:

• Quick turnaround – ordering products from overseas takes months of lead time to allow for production and shipping
• Quality control – maintaining a high level of quality is important to our customers
• Quantity control – minimum order quantities are often required in offshore manufacturing, by sewing shoes here we can make as many or as few as we need, quickly!

I believe you need to look at your business model and the product you want to create.
There are many products that are complex, using materials that require special machinery and fixtures to produce. In these situations, offshore manufacturing is a likely choice. But for simpler products like Robeez, we chose to keep manufacturing local.

Now for the second part of the question: Did retailers care about it or not? In Canada, there are a number of boutiques that cater specifically to locally made goods. To these retailers, our made in Canada label is extremely important. But for the vast majority of retailers, the label influences rather than drives purchase decisions.

I can say that I am extremely proud to know that Robeez provides local jobs and contributes to the BC economy. There are currently over 300 people employed at our head office in Burnaby.

So the moral of today’s message? Should mompreneurs manufacture their wares overseas? It depends. Carefully look at your budget. Consider the product you are making. Consider who will sell your product. What is their order cycle? Do they order six months in advance or place an order and expect delivery next week? All these factors will impact your ultimate decision.

Finding the money to get started

The first response after my return from vacation; it feels good to be back. The next message comes from Deborah who is in the process of manufacturing her baby product and has even recently received an iparentingmedia award. (Congratulations!) Her question:

I was wondering how one goes about finding investors. Do you need to have a well-established company before an investor will even take a chance?

When I started Robeez, my start up costs were minimal. Some leather, sewing notions, a fax machine, and I was pretty much set. I used personal finances and a business line of credit to get started. As Robeez grew, we used the profits to finance the business. While this was appropriate to my business, I know many other entrepreneurs face much larger costs to get the ball rolling.

So while I may not be an expert in the area of investment, I know of a great resource for financing a new business. Women’s Enterprise Center has a document summarizing financing options. Which one will work for your business will require some research but hopefully this will give you some ideas.

Whatever solution you find for financing your business you will need to start with a clearly defined business plan. I can’t emphasize the importance of planning enough. Starting with a solid plan allows you clearly define your business goals from day one. There are a wide variety of free samples available on the internet. Get started!

Helping mompreneurs do their homework

Sandra is a big believer in learning; ask questions, do your research, know your subject in and out. If you’ve stumbled across this blog, it’s likely that you’re already on the right track. While Sandra is away on vacation and unavailable to answer specific questions, I want to help make research a little easier, so I’ve pulled together some of our favourite online resources for mompreneurs.

Websites that cover various subjects of interest to mompreneurs:
Women Entrepreneur – This website is part of Entrepreneur Magazine group. It includes articles about everything from compensating your sales reps to selecting the right tradeshow.
Empower Women Now – This blog covers topics that very current; everything is clearly and thoroughly explained.
Mompreneur Center – Another great source from Entrepreneur Magazine. This section focuses specifically on topics for entrepreneurial moms.

Websites with information for entrepreneurs specific to your region:
Europe
USA
Canada

If you have a favourite mompreneur resource to share, please write a comment.
Kelly

Some interesting reads for mompreneurs

I have some very big shoes to fill while Sandra is away on vacation. While I’m not going to dispense advice myself, I thought it would be helpful to reference some previous articles published about Robeez and Sandra. Each article addresses Sandra’s experiences from a different perspective and provides insight for inquiring mompreneurs.

Q & A – Sandra Wilson, Visionary behind Robeez, published in The Mompreneur, June 2007
By Kathryn Bechthold

An empire built on heart and sole, published in Women’s Post, May 2006
By Gracey Hitchcock

The Mother Corp.: Meet Five Mompreneurs, published in Today’s Parent, March 2006
By Astrid Van Den Broek

Happy Reading!
Kelly

The SavvyMom Mompreneur™ of the Year Award

Here’s a great opportunity for all Canadian mompreneurs! SavvyMom has launched a national awards program to celebrate the great ideas and innovative solutions developed by savvy Canadian moms. You can nominate yourself or a friend, or vote for your favourite mompreneur.

The contest, which will run throughout the summer, is designed to find Canada’s top Mompreneur™, who will be rewarded this fall with an $18,000 prize package of cash, business services and office equipment designed to help take her business to the next level.

You can learn more about the award through the Mompreneur™ of the Year Award website.

Posted by Kelly