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Product Creation and Supply Chain for Small Businesses

Introduction

Introduction

Welcome to our small business webinar series. I'm Desiree Brown, Senior Manager of Communications at the Tory Burch Foundation. Today, we are thrilled to introduce Michelle Valley, a creative strategist who specializes in helping e-commerce brands grow. Michelle will guide us through the process of turning a great product idea into something customers can hold in their hands.

The Idea Phase

Michelle’s brand, Downvoice Studio, aimed to bring natural products to market, housed in post-consumer plastic packaging. She started with a strong vision but quickly realized the importance of thorough research and planning.

  1. Initial Research:

    • Michelle used Alibaba and AliExpress to source potential suppliers.
    • Faced challenges with high minimum order quantities (MOQs) and the ethical considerations of her brand ethos.

  2. Out-of-the-Box Thinking:

    • Discovered Precious Plastics, a community that recycles old plastics into new products.
    • Partnered with two female Artisans from Precious Plastics to create packaging economically and ethically.

Developing the Product

  1. Prototyping:

    • Utilized a local 3D printer to create design prototypes, reducing the risk and cost before full production.

  2. Finding a Chemist:

    • Initially tried making makeup formulas herself without success.
    • Found a cosmetic chemist named Sherry through Facebook groups, leading to successful product formulation.

The Marketing Phase

  1. Product Launch:

    • Leveraged social media, particularly TikTok, to build brand awareness and drive sales.
    • One viral video significantly increased sales and sold out the initial inventory.

  2. Challenges:

    • Despite the successful launch, the supply chain issues led Michelle to reconsider continuing production.

Key Takeaways and What to Do Differently

  1. Budget More:

    • Initial budget was too small; recommended setting aside more funds for supply chain costs.

  2. Balanced Focus:

    • While ethics are important, it's crucial to balance this with practical business considerations like quality, cost, and lead times.

  3. Supplier and Manufacturer Relationships:

    • Tips for finding reliable suppliers include online marketplaces, trade shows, and word-of-mouth recommendations.

Crucial Steps for Business Success

  1. Identify Your Product/Service:

    • Build your business based on passion or choose high-demand, high-profit business ideas.

  2. Determine Logistics and Transportation:

    • Factor shipping costs and timelines early on.

  3. Establish Inventory Processes:

    • DIY at first to save costs or use a warehouse if ready.

  4. Implement Technology:

    • Use apps and services like ShipStation to streamline your operations.

  5. Monitor Performance:

    • Be prepared to switch suppliers if necessary. Always be open to continuous improvements.

Common Questions

  1. Finding Suppliers:

    • Online marketplaces, trade shows, and word of mouth are great sources.

  2. Ensuring Product Success:

    • Test products on social media, understand market trends using tools like Google Trends and Exploding Topics, and gather real-world feedback.

  3. Protecting Yourself:

    • Always ask for samples, build good relationships, use deposits, and ensure understanding of intellectual property ownership.

  4. Launching Products:

    • Focus on organic content, paid ads, building email lists, and connecting with wholesalers.

Conclusion

The key takeaway is the balance between passion and practicalities. A supply chain is crucial, but so is your motivation and enjoyment. By focusing on what energizes you and making thoughtful business decisions, you set the stage for long-term success.

Keywords

  • Creative Strategist
  • Product Idea
  • E-commerce
  • Supply Chain
  • Minimum Order Quantities (MOQs)
  • Precious Plastics
  • 3D Printing
  • Cosmetic Chemist
  • Social Media Marketing
  • Supply Chain Management
  • Budget
  • Logistics
  • Inventory
  • Technology
  • Google Trends
  • Exploding Topics

FAQ

Q: How do I find reliable suppliers? A: Use online marketplaces like Alibaba and AliExpress, attend trade shows, and seek word-of-mouth recommendations.

Q: How can I ensure my product will sell? A: Test products on social media, use tools like Google Trends and Exploding Topics to identify market trends, and get real-world feedback.

Q: How can I protect my business when dealing with suppliers? A: Always ask for samples, build strong relationships, use deposit payment systems, and ensure clear understanding of intellectual property ownership.

Q: What should I focus on when launching a product? A: Start with organic content, use high-performing content for paid ads, build your email list, and connect with wholesalers for broader reach.

Q: What are hidden costs in starting a product-based business? A: Shipping costs, both for receiving products and sending them to customers, are often higher than anticipated.

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