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Click to view Woozle's profile Start-up Woozle 1 posts since
Oct 21, 2008
15. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 12:41 AM
Lela, I'm sure this event is a lot of work for you, but I'm so excited to read your answers to some of these questions! I'm wondering how you knew what steps to take to make the transition, in such a short amount of time, from being a one-woman show to where you are today. Do you have mentors or advisors? I'm finding it hard to know what to do to get my business to the next level. I feel like I need a map, but I don't know where to find one!

Thanks for taking the time to answer our questions!
Daria
Click to view atlasrelo's profile Start-up atlasrelo 2 posts since
Oct 22, 2008
16. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 9:12 AM

Hello everyone
My name is Sindy~ new here ~ very new to all this~ I've had 5 kids (one is terminally ill) so I'm late in life learning the computer~ I'm an old Batch System girl~ lol~ I'm hoping to ask this question correctly and in the right form~

I'd like to know if you make/design your own labels for your products? and if you do NOT how did you decide when/where to have the labels professionally done? and Do you find professionally done labels present a better front for your products? I'm thinking so, but would love to have imput on this~ I find since I'm computer challenged, I'm very label challenged ~ Imagine that?
Thanks
Sindy
Click to view sweetaroma's profile Start-up sweetaroma 1 posts since
Oct 22, 2008
17. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 9:30 AM
Hello Lela,

Thank you in advanced for sharing your knowldge

my two important questions are how did you
  • Factored philanthropy into your business from the start, I have been asking lot of questions to do this as I am starting a new consulting business.

  • Marketting on the cheap, or networking , finding a PR and delivering a right material to PR,, did you hire someone to do all this or you have put together your self .
Thank you again, I look forward to listening you views and comments.

Sincerely,
Sweetie D

Click to view bamboo2's profile Start-up bamboo2 1 posts since
Oct 22, 2008
18. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 10:22 AM
Hi Lela! Thank you for sharing your time with us today! My question is, What initial steps did you take to become FDA compliant? Did you buy the Good Manuf. Practice Book first? OR if once registered with the FDA, do they send you the GMP book? Not sure how to begin or what to do to start "becoming" officially compliant....Thank you!
Click to view SBOCTeam's profile sboc SBOCTeam 325 posts since
Jul 27, 2007
19. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:00 PM
Lela,

Thanks so much for participating today!

Shall we get started?

Take it away Lela!
Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
20. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:04 PM
in response to: puzzleman

Hi Puzzelman,


Thanks for your question! From the inception of my company until today, we have chosen to both retail direct to the public and wholesale to the industry. I'd like to tell you that was a stroke of genius, but- in reality- it was more of a necessity. As a fledgling young business, I would gladly take a check from just about anyone as long as it was made out in my name. As the company has grown, we have certainly evolved and become more specific with regards to our client base. While we still retail to the public, wholesale opportunities now generate 90% of our revenues and we have become increasingly more selective with regards to whom we select as wholesale partners. We don't work with gift basket companies, domestic distributors, most online boutiques and any mass market chains. Like everyone, we certainly endure our fair share of "slow" days when I am tempted to once again take on customers who offer immediate cash flow but might not be in line with our vision. Those days are a challenge, but I am confident that I am not just selling product, but building a brand and I believe our selectiveness has served us well.


With regard to getting product to market, I took about 9 months to fully develop the original line. As my introduction mentioned, the initial launch was 18 products. The development process involved lots of trial, error and testing of various formulations, market research, ingredient sourcing, packaging compatibility and graphic design, web development, product photography, etc. It was an exhaustive process, but offered a great deal of creativity and I thoroughly enjoyed building the line from the ground up.

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
21. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:09 PM
in response to: caffeinated
Hi caffeinated,

Bella Luccè loosely translates to "Beautiful Glow" in Italian. I love the word "glow" (it emits radiance, warm and wellbeing to me) and wanted to incorporate the word into my company name somehow. Unfortunately, around that same time, Jennifer Lopez was just launching her fragrance under the name "Glow" and I knew well enough to stay far away from that trademarking challenge. However, I took Italian in college and it's always been my favorite language. I also knew that Bella Luccè would focus on sourcing ingredients globally, so I thought a foreign name could help communicate that message. In spite of a few obstacle we faced on our path to federal registration, I am thrilled with the name...it resonates with consumers and conveys the image I have always wanted to project. I hope you like it!

Also, as a fair warning to anyone reading- I have a "W" key on my laptop with a sudden deathwish. If you read an answer and it makes absolutely no sense, it's likely because I am missing w's here and there. Bear with me!

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
22. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:12 PM
in response to: haywire67

Hiya Haywire,


I have been unusually fortunate in this regard. My international distributors have all found me, largely through the internet. I have always stressed the importance of a sharp website, well optimized with search engines, that has professional-looking product photos and an effective message. Our website is the greatest tool I have in my arsenal and it has continually attracted clientele through the years, both wholesale, retail and international distributors.


Having said that, I think there's a solid vetting process to working with international distributors. I'll be speaking on this very subject at the Handmade Soapmakers Guild Conference in May 2009 in palm Springs, CA. But here is the long and short of it:


I think you need to ask essential questions at the very beginning of the relationship. Sometimes we are so flattered to get that attention that our common sense flies right out the window, but we should be checking these folks out, too....it's a two-way street! Ask what other American brands they represent, ask for the contact details of those principals in order to secure a recommendation, ask what their gross sales were for the year proceeding, ask about their sales staff and planned distribution channels. Know that you're going to have to discount over wholesale to work with international distributors...figure out those margins, but make sure you don't erase all of your profit in the process. Good luck!

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
23. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:16 PM
in response to: drflower

Hi drflower (great to see you here!),


I kept capital low via several means. First, I bought in looooow volume: think ingredients a pound at a time, bottles and jars by the dozen. Generally speaking, I'd get a $1,000 order from one spa or another and whatever supplies I was ordering that week would now get ordered two dozen at a time, then a hundred at a time, etc. It was a very fluid, spontaneous process. I knew ordering materials in volume would get the cost of good sold down, but you can't buy in volume if you don't have the capital, so I just babystepped my way up as I was able.


Also, I bartered and begged as much as I possibly could. Some days that meant scrubbing floors and running errands for my ill aunt, who was a world-renowned photographer, in exchange for her help with product photos. I asked for a b&w laser printer for my birthday during our first year and used it to print my own labels, one at a time. I paid for part of my initia; web development as a barter. I wrote a press release about their product, which eventually got the web developer a nice spread in a nationally known paper. She did web, I wrote well, and we both used what we did best to our advantage.


I also kept expenses lean by working out of my home and doing every last shred of production and customer service work myself. I started this business as a financially challenged (to say the least) single mom of two preschool-aged kids...if I can do it, damn near anyone can. I think the key is to prioritize your spending, slash every non-essential off the list, and get as creative as you can with regards to bartering services you can't provide yourself.

Click to view SBOCTeam's profile sboc SBOCTeam 325 posts since
Jul 27, 2007
24. Re: Live event: Turning a hobby into a full-fledged biz Oct 22, 2008 2:18 PM
Community,

Remember to refresh your browsers often to see Lela's latest response.

Thanks,
The SBOC Team

Edited by: SBOCTeam on Oct 22, 2008
Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
25. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:20 PM
in response to: SBOCTeam

SBOCT Team,


That's a great question and thanks for your warm words with regard to my branding. I have used the same designer almost from the beginning of the company. She is a wonderful friend and comrade and I am so immensely proud to have her as part of our team. While I can see some value in using different designers to keep things "fresh", we don't anticipate branching out anytime soon. By using one designer, I have one "go-to" point for all of our art. She understands our branding, our needs and the art requirements of the printers work with, so there is no learning curve with new projects, which means they're completed more quickly and with less expense.

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
26. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:23 PM
in response to: naturaljeanie

Naturaljeanie,

I did, indeed, launch with 18 products- 6 fragrances of lotion and soap, our peppermint pedicure collection, a limited facial range and a few body scrubs. That range and number of products was manageable for me and I never scaled it back. After a year of working solo (anywhere from 60-80 hours/week), I hired an elderly lady to help apply labels and do some product finishing work. She worked with me for more than a year until I hired a full-time production manager who allowed me to focus on new product development and customer service. Today, there are 8 full-timers: a few who work in the office and on customer service, two full-time production people, a full-time production assistant who does all the labeling, induction sealing and stocking, and the shipping crew. We still outsource our web design, product photography and graphic design. When you're initially ready to bring on help, examine your daily task list- journal everything you do for a week and how much time each task takes. Then decide which tasks need YOU and which tasks just need doing. In my case, I am the heart of the business, so I need to focus on strategic planning and product development. I don't need to label jars or charge credit cards, but those tasks do need to be accomplished. So I delegate what needs doing, but doesn't need doing by me.

As I mentioned previously, I think the best way to get your name out there is to design a beautiful website, stock it full of good information and then optimize the hell out of it so the search engines can find it easily. In my experience, obtaining customers via the internet is the most cost-effective way to get them, much more so than via reps or trade shows, which are the more "traditional" means. That's how I got the word out, coupled with self-written press releases. I have never obtained outside funding- no loans, no grants, no investors. It's important to keep in mind that I remarried a year after I launched my business. That as a welcome relief as I was no longer solely responsible for all household expenses, and it allowed me to reinvest most of our revenue back into the business. But outside funding, no.

Thanks much for your kind words- they are truly appreciated. I would not consider us "huge", we are still very much a micro business, but we do have the benefit of a great staff and fairly wide distribution.

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
27. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:30 PM
in response to: MsCaCo

Hello MsCaCo,


This is a difficult question, but a good one! I think having a niche is important...everyone needs a "point of difference" that sets them apart from the sea of competition, no matter what industry you're in. In my case, I had a great backstory, which was authentic and of interest to retailers and the media. You can't manufacture that, but you can (and should) capitalize on it if you have one. As far as our products go, I knew I wanted to someday travel the world. I studied cultural anthropology and sociology in college and was always fascinated by different cultures, so having products inspired by and raw materials sourced from all corners of the earth was a natural fit for me.


When trying to decide your niche, ponder what you are passionate about, what inspired you and where you want to take your business. It could be a specialty product, an ingredient you add or omit, a special marketing program you offer, a particular method or location of your manufacturing, etc. Virtually anything can be a point of difference, but it's critical that you find one and keep it clearly in focus as you design every other aspect of your business. I can't wait to see what you come up with... good luck!

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
28. Re: Event October 22: Turning a hobby into a full-fledged bi Oct 22, 2008 2:31 PM
in response to: creamy

Hi creamy,

This is one area of the industry that has drastically changed since my business began and I am confident that it will continue to be a dynamic area for years to come. Looking at all of those regulations can be daunting, but I think it's essential to make sure you have accurate information and digest it in manageable pieces. Determine where you might want to sell your products and then analyze that region's specific criteria.

I think it's crucial that you be leery of third-party information posted on the internet. I've heard horror stories of small companies who built their entire product base and distribution strategy on faulty information, which was a tremendous aspect that left them at an unfair disadvantage. If you can afford it (but who can in the beginning?), hire an attorney who specializes in this industry- they are out there and are worth their weight in gold. If that's not in budget, look to government sources and reputable trade organizations who can help. For domestic distribution, the Indie Beauty Network (http://www.indiebeauty.com/) has great information, along with a regular call-in show where labeling and legal experts are featured. Membership fees are very manageable and my initial investment at IBN has paid me back in spades. Industry conferences can also be a great source of information...I previously mentioned the HMSG conference will take place in May 2009 and will feature industry experts speaking on this very subject. You can also go direct to the source at http://www.cfsan.fda.gov/~dms/cos-lab1.html or pick up Marie Gale's book on the subject: http://www.mariegale.com/cosmetic-labeling-book.html .

When you start to look internationally, I highly recommend several sources:

a) Rethink hiring the attorney mentioned in the above paragraph.
b) Call the embassies of the countries you're interested in exporting to- they can often be quite helpful.
c) Consider membership in trade organizations designed for larger companies. Yes, they have larger price tags, but they very often have databases designed to help their members understand import regulations by country. I am thinking specifically of the IRDB by the Personal Care Products Council. (* http://irdb.personalcarecouncil.org/* ). Yes, it's spendy but you may well need it if you're serious about export.

Click to view LelaBarker's profile EXPERT LelaBarker 29 posts since
Oct 9, 2008
29. Re: Event October 22: Turning a hobby into a full-fledged biz Oct 22, 2008 2:35 PM
in response to: naturaljeanie

Hi again Jeanie,


Hopefully some of the information I posted above for Haywire will be helpful to you as well. Bella Luccè has a wonderful Middle Eastern distributor and we've been working with a new Scandinavian distributor for a year with fantastic results. I am in the final stages of negotiations and legalization paperwork with both European and South Korean distributors. Each case presents its own pricing and regulatory challenges, so you have to weigh them individually. We only take on approximately 10% of the international distributors who approach us.


With regard to pricing, essentially, your distributor sells at wholesale. That means you've got to build in a profit margin for them, too. International retail pricing for American brands is typically higher than domestic MSRP, so you do have some wiggle room there. But your distributor will likely have VAT, freight, warehouse and staff costs, etc. so it has to be profitable for them as well. Expect to discount anywhere from 15-50% off wholesale. If you can't afford to do it, then don't. It's a tricky balance, but can be quite profitable if done properly.


We are in the final stages of a Middle Eastern hotel deal. Because of our existing distribution and reputation in the region, we were approached by a well-known hotel chain and asked to create a spa concept for their new properties in the region. That's incredibly exciting and an honor to be asked, but it's a project on a massive scale: 26 custom retail products, 40+ custom backbar products, a slew of treatments, etc. I've been to Jordan and Dubai three times in the last 2 years explicitly for the project (all at my own expense) and spent literally hundreds of hours on product development, ingredient sourcing, graphic design and strategy/pricing proposals. It's a huge task for a small company and a gamble, but I truly believe that these gambles are at the heart of successful businesses. We're in the home stretch and it's all going through, so it almost time to pop corks, but you need the patience of a saint and the ability to see payoffs down the road (rather than in the immediate) in order to play on that type of playing field. Hope that's helpful...

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