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.

This mom is calling it a day (for now)

Many of you who know me, know that this past year since the sale of Robeez has been bittersweet. When Stride Rite purchased Robeez, I agreed to stay on for a year to see everyone through the transition. And now 15 months later, my time with Robeez is coming to a close. I’m looking forward to a break, to spend time with my husband and son and family and friends. But I’m torn because Robeez is what I have known for the past thirteen years and it is very difficult to say goodbye.

As I wind down my time at Robeez, I will also wind down my blog. For those of you who have been waiting to ask questions, now is the time. I will accept questions until Monday, November 19 and then post all remaining answers before the end of the month. Write to mompreneur@robeez.com.

Thank you to everyone who has regularly read my blog. Over the next few months, I will take time to relax and explore new possibilities.

Disclosing your big idea

I received an email from a mom who attended my presentation at the Indigo Entrepreneurship Series. Angelique had the following questions:

1. You talked a lot about getting help from other people (i.e. your pricing strategy). How do you get that help without the fear that someone is going to “steal” your idea?
2. I’ve seen Robeez knockoffs in the marketplace. Did you consider a patent for your product?

I’ve met some entrepreneurs who were really concerned about their idea being stolen and others who want to tell everyone they meet. I have to say that I fell in the latter of these two camps. I’ve always wanted to see the best in people. When it came time to share my business idea with mentors, I gave all the details. However this also reflected the nature of my product. Apparel products are not eligible for patents. If you are very concerned about this, you could have contacts sign a non-disclosure agreement. I have signed a number of NDA’s when mentoring entrepreneurs. A non-disclosure agreement can be drafted by your lawyer.

And to answer your second question: yes, I did consider a patent however apparel products cannot be patented so I was out of luck.

Make the call or do the show?

A received a message from Leah, who attended my presentation at Indigo’s Entrepreneur Series. (She even made a sudden detour on the subway to attend at the last minute! Thank you, Leah!) With a mompreneur friend, Leah has started a line of infant and toddler clothing named Belly Babies. She says, “Happily, the response so far has been great and we are interested at this point in trying out a tradeshow. Can you recommend a good trade show, particularly in Toronto or Ontario? Would you say that this route is the best way to get into retailer stores, or would you advise cold calling?"

There are a few considerations on both sides to weigh before making this decision.

1. Tradeshows will expose you to dozens, if not hundreds, of potential buyers. A great opportunity to make a number of sales in a short period of time.
2. Tradeshows will put you right next door to dozens of potential competitors. Buyers are often busy and rushed and it can be difficult to keep their attention.
3. Tradeshows can have a high price tag with money going to booth space, displays and furniture, electrical, printed materials, and more, not to mention the time and effort involved in preparing for a tradeshow.
4. Calling on accounts gives you a quiet opportunity to discuss your product one-on-one. This can be a time-consuming process. I recommend that you start with the retailers in your local area. Speaking one-on-one with retail buyers can be a great learning experience and something you may want to do before jumping into an expensive tradeshow.

Whichever you choose, and your answer may be both, be prepared. Have your pitch, product samples, price list, and order form ready to make the sale.

The tradeshows that I have had the best experiences with in Ontario are the CGTA and the Toronto International Gift Fair.

Happy selling!

When to use a distributor

In May, Diane Sam launched a new product MoBoleez, a breastfeeding hat. The hats are selling really well and have taken off much faster than she anticipated. But she is now getting inquiries from Japan, Singapore, Kuwait, and New Zealand from distributors wanting to represent her product line. Her question: What do I need to look for in a distributor? Am I better off just selling them through “head office,” or should I try and get distributors? If I do, how do I protect my brand, and make sure they are representing our company well? A couple of them seem like good opportunities, but what do I need to know about them before proceeding?

I also had a number of distributors contact me in the early years of Robeez. And often they seemed like a really good opportunity until we got into all the details. Overseas opportunities can be logistical nightmares. From quotas to customs to local legislation, working with an overseas distributor has the potential to suck up a lot of your time.

My advice: focus your energies on North America. If sales are picking up in Western Canada then look at distributing in the east. If sales in Canada are humming, take a look at the US market. There are loads of opportunities for distribution in both countries. And by focusing your energies on markets close-to-home, you avoid diluting your efforts worldwide.

When you do have extra capacity, you can spend time carefully researching the correct distributor for your product. You want to know how they will represent your brand, where it will be distributed, how it will be priced, and the level of service they will provide. All these elements must be in line with what MoBoleez is all about. If you do decide to work with a distributor, I recommend having a candid conversation with other brands they represent.

Congratulations on your new business!

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!