Are you feeling overwhelmed about putting together a business plan for your brilliant idea, prototype, or service? Don’t stress! Sara took a different approach and found success. She focused on three key things in the early stages of her business: make it, sell it, and spread the word. These were the priorities that would bring in the money she needed to keep growing her business.
It’s tempting to get caught up in all the little details, but Sara knew that the funds were crucial to keep things going. It’s a lot like life – we all have to-do lists and often gravitate towards the easiest tasks, avoiding the big picture. But as an entrepreneur, it’s important to take a step back and ask yourself, what do I need to do to bring in income and sustain my business?”
Take NO as a compliment
Remember the time when you had an amazing idea and you felt like you finally found the solution to a problem? Well, that’s a fantastic start! But hold on tight, because the road ahead is filled with obstacles. From trying to find people to help you bring your idea to life, to figuring out how to fund it, to deciding on the packaging, and where to sell it, it can be overwhelming.
But here’s the thing, when you’re trying to bring something new and innovative to the world, it’s normal to hear a lot of nos. In fact, the more nos you hear, the more likely it is that you’ve come up with something truly unique. Those who are willing to push through the rejections and persist are the ones who make a real impact.
So if you hear no and people think your idea is crazy, take it as a compliment! You have three things working in your favor: your passion, your drive, and your persistence. Just like Sara Blakely, the founder of Spanx, who went to manufacturing plants at the age of 29 and introduced herself as the inventor of something new. Despite being asked the same three questions: “Who are you?” “Who are you with?” and “Who’s financially backing you?”, she didn’t give up and continued to sell her idea. And the guy in Charlotte, NC who said no, eventually called her back a few weeks later, eager to help her bring her crazy idea to life.
So don’t be discouraged by the nos, keep pushing and selling your idea, because at the end of the day, it’s up to you to convince others to take a chance on your vision.”
Choosing a Manufacturer
Choosing the right manufacturer is key to your success, but it’s not always an easy feat. Don’t settle for a manufacturer that constantly cuts you off or leaves you on hold. Keep calling and don’t give up! Sara Blakely’s determined entrepreneurial mindset found success by taking matters into her own hands and driving to North Carolina to meet manufacturers in person.
With so many resources online, you’re bound to find a long list of potential manufacturers. But don’t stop there! Consider their proximity to you and if there’s a language barrier. Think about their past work and whether their products align with what you admire.
Keep in mind that smaller manufacturers may be more willing to work with you, but bigger ones might have more resources. However, if you have a strong connection with someone at a manufacturing plant, that could make all the difference.
Before you settle on a manufacturer, make sure to do your financial due diligence. You don’t want to be caught off guard like one entrepreneur who had to scramble when her factory suddenly shut down. Ask the manufacturer about their involvement in the prototyping phase, and whether they’re open to multiple iterations.
When you reach out to manufacturers, be enthusiastic and confident. Show them the bigger picture and how they’ll make a difference in the world. Remember, if you show any doubt about your product, it could be the end of the road for you. Stand tall and express complete confidence in your idea, and don’t hesitate to lean on the manufacturer’s expertise
Don’t Assume Anything
When creating your prototype, it’s key to ask questions before jumping into things. Don’t just assume everything will fall into place, make sure to double-check important details like scalability. You don’t want to spend time and energy creating a beautiful prototype, only to find out it can’t be mass-produced.
Take the story of Sara and her creation of Spanx, for example. After two years of perfecting her prototype, she landed a big order from Neiman Marcus. Excited, she called the manufacturing plant to get the ball rolling. But then she was hit with a curveball – the plant asked about the crotches. Sara was left scratching her head, wondering what they were talking about. It turned out, the prototypes she had been working on didn’t include the crotches, and she had to source them on her own.
Talk about a wild ride! Sara had to scramble to find a crotch company, scouring the yellow pages and finally locating one just an hour away. Looking back, she had no idea what she was doing but thankfully everything worked out in the end. The moral of the story? Don’t assume anything and always ask questions upfront!
Ensure Quality From The Start
When you’re starting a new venture, it’s all about taking a leap of faith. You have to trust your manufacturer to make the products you envision, with consistent quality. In the early days, Sara didn’t have the resources or the funds to have extensive quality control measures in place.
She recalls her first visit to the manufacturing plant, where the prototypes were placed on plastic forms and labeled with sizes. The employees would stand back with their clipboards and confidently say, “Yep, that’s a medium.” But Sara had a moment of realization, “Wait a minute, how do they know how it feels? What about the women who will actually be wearing it?” So she decided to put the prototypes on real women and see how they felt. By lunchtime, the women reported that the waistband was cutting in or slipping down, and these were things that could never be picked up from a plastic form.
Sara was in a new industry, and it was intimidating to ask these questions, but she was determined to make the best product for her customers. When she finally got her hands on the first prototype, she judged its quality based on how it felt on her body. She tried to explain to the manufacturers what needed to be fixed, but they spoke a different language, filled with jargon. It was a comical situation, with two people in front of each other trying to communicate, but Sara was relentless. She created the whole prototype based on her own feelings and intuition, and she was respectful to the manufacturer’s expertise.
It’s a delicate balance when working with manufacturers. You need their expertise, but you also need to bring your fresh perspective to the table. It’s like a dance, a shared collaboration that can result in magic.
Negotiate Minimums
Starting a business can be both thrilling and nerve-wracking. One of the biggest challenges is buying inventory. You might be tempted to buy too much, but that can be the death of your start-up. To avoid this pitfall, it’s important to know the minimum order quantities required by your manufacturer. Some might ask for 10,000 pieces, while others might have smaller minimums. Doing the math, you may find yourself needing to come up with $100,000 just to get your first order. This is where you need to plan how to get the funds – whether it’s through a loan or by raising money.
Here’s the good news: manufacturers might be willing to help you out, especially if you include them in your journey and explain how their help can make a difference in the world. So don’t be afraid to be honest and vulnerable. A little bit of sympathy and a heartfelt “please” can go a long way!
Diversify to Gain Leverage
When your business is taking off, spreading your manufacturer sources is a smart move. This way, you won’t have all your eggs in one basket. It’s like playing it safe, so you don’t have to put all your trust in one person. Sure, sharing your trade secrets with multiple manufacturers can be risky, but as long as you have a strong bond with them and you know they’re financially stable, you shouldn’t worry too much about diversification.
Diversification is key in business because it helps you keep your power. The world is full of unpredictable events, like unexpected weather changes, economic struggles in certain parts of the world, tariffs, and law changes. By spreading out your manufacturers, you’re protecting yourself from any potential disasters in one specific area.
The same goes for your distribution strategy. Selling all your products to one account puts you in a vulnerable spot. Think of your manufacturing and distribution as a pie chart, you want it to be equally divided to keep you protected. So, make sure your distribution is just as diverse as your manufacturing to give your business the ultimate safety net.
Conclusion
Starting a business can be both exciting and challenging, and it’s important to make smart decisions that will help your business succeed. One such decision is to diversify your manufacturing and distribution sources. By spreading out your sources, you can reduce the risk of relying too heavily on one person or one area.
Key Learnings:
Diversifying your manufacturing sources is a smart move to keep your business protected
Sharing your trade secrets with multiple manufacturers can be risky, but a strong bond and financial stability can help mitigate this risk
Diversification is key in business as it helps you keep your power and protects you from unexpected events
Your distribution strategy should also be diverse to keep you protected
Think of your manufacturing and distribution as a pie chart, with equal slices to ensure your business is protected.
- Question everything
- Don’t take “no” for an answer
- Never assume
- Quality is everything
- Invest in minimum inventory
- Negotiate the minimum
- Establish manufacturer diversification
- Say “please” and “thank you” often
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