Hello Earthlings!
Life is an experiment. This is the story of my (failed) entrepreneurial experiment.
After being introduced to my mom’s friend, a successful textile manufacturer in China, I was convinced that I should start my own business. I had a BRILLIANT idea (insert sarcasm). Masks have become a mandatory accessory thanks to the pandemic. Although the aesthetic appeal of masks has improved in the last couple of months, masks are barely seen as fashionable. And this is where the business opportunity steps in! My idea was to create a matching mask set, complete with a scrunch and handkerchief. I would sell through Etsy – a site supporting small businesses specializing in hand-made crafts and products. After some back and forth with the supplier, I picked eight patterns and ordered my first batch of masks (minimum order: 30 masks at $15 = $450). Now all I had to do was to sit back and wait for the bills to pile (that’s how entrepreneurship works right?)
My plan was obviously flawed in numerous ways:
- Did not math: When discussing the cost of the masks, I only calculated profit based on the gross cost of each mask ($15). I did not include the cost of taxes, postage, duties fees, gas for delivery, packaging, etc. I also decreased the selling price from $25 to $20 when I discovered the material was not very breathable.
- Poor planning: To be honest there was no real plan – just a dream and ton of impulsivity. I assumed that people would wear the product because I liked the idea. It was egotistical and crass to think I could skip over the research and testing phase, and hit jackpot.
- Choosing quantity over quality: I was given the choice to choose either four or eight patterns. At the time, I opted for more, not thinking that more crap doesn’t increase sales. I ended up purposely not selling one-third of the masks because they did not meet my aesthetic standards
- Not asking enough questions: I assumed that the material would be silk when instead, it just felt “silky” (the product was 100% polyester). I didn’t ask about additional costs, breathability of material, availability of samples. In brief, I cheated myself by not asking.
So what happened? I operated at a financial LOSS ($150 to be exact) but here are some WINS
- Factor in all costs and ADD TAX: When I add say add tax I mean literally and figurately. The additional costs included the time to set up the Etsy account, the time to stage products and take pictures, the time/gas used to deliver products, the time to write notes, the transactional costs of sales. The purpose of a business is to make money – if you’re losing money/time/effort on every sale, it’s not worth the money/time/effort in the first place. Bow out early if you don’t see return on investment.
- Believe in your product: Strong product developers must truly believe their product will succeed in order to breathe life into it and encourage others to come along for the ride. I lost the initial thrill and that death was way more painful than the time and money lost.
- My friends are hella supportive: I swear, my friends would buy coal from me if it meant being supportive (and I would buy coal for them too!). From this small experiment, I clearly saw who I was TIGHT with and who was a sideline friend (and it only cost $20 per person to confirm – What a deal!). I’ve learned that everyone needs varying levels of friendship; not everyone has to be your BFF. What matters is that you know the difference to save you heartache and disappointment.
- Walking the walk: Sure, my idea wasn’t “successful” in the financial sense, but what an unimaginative way to think about this experience. Instead of pondering an idea for months, I took a risk, went through the motions and ultimately did what I wanted to do – to be an entrepreneur for a whole two weeks! I’m proud of my beautiful financial lesson!
Next time, I promise to secure the bag;)