Mentor for a Month
Getting to Solid Ground
A busy embroiderer and mother wants to get her business off the ground, but lacks time, money and focus. Can an experienced embroiderer get her on the right track?
Meet the Mentee
Brooke Etier, owner of Tulip Soup in Dothan, AL, has 10 years of experience in marketing and public relations, but had been unemployed for two years before she entered the entrepreneurial waters – she started her own decorating business in 2009.
"My sister randomly sent me an e-mail last year about a post she saw on www.craigslist.org about a small embroidery business that was for sale in a small town not too far from her in Alabama," Etier says. "Although I didn't purchase that decorating business, I started thinking about doing it. I eventually found a couple not too far from us in North Carolina who wanted someone to take over the lease on their machine due to some health issues they had."
In late June, Etier relocated from Atlanta to Alabama, taking her single-head 15-needle embroidery machine – and her 3-year-old son – with her. Etier's main challenge is getting her business off the ground in general (and in a new state), although she has already created a pretty robust e-commerce website (www.tulipsoup.com). "In the future, I'd like to get more of my work onto my website and then onto eBay and www.etsy.com and other places online where people shop for gifts," she says.
Etier has also started taking some online SCORE courses. "They're great, and I have the ability to meet some mentors that way, but I really want to find a mentor who's in the same business as the one I'm pursuing," she says.
My Goals
• Budget my time. "Since I'm a brand-new company, I'm doing things on a shoestring budget," says Etier, who's acting as a sole proprietor while taking care of her son.
• Solve pricing issues. "I recently set up a booth at a kids' consignment sale and got a few orders," Etier says. "After completing them, I realized I didn't charge enough for the work." She realizes this is part of the learning process, but wants to find the right line between affordable and profitable.
• Overcome information overload and set long-term goals. "There are so many great resources out there for those of us in the decorated apparel business, but it's often overwhelming to a newbie," Etier says. "I'd love to have someone to say, ‘Here's what's important right now; these other things can wait until you're more established.' "
Week One
Locate Potential Clients;
Determine Fees and Goals
Step 1: Think about a new, profitable niche.
Step 2: Focus on individual and single-piece runs.
Step 3: Start thinking about pricing and tweaking your business plan.
The Challenge
Most of Etier's business has come from personalizing gift items, such as monogrammed bags, and kids' apparel. One of her goals is to expand into the pet apparel niche by targeting local retail pet stores and meeting with their buyers to see if she can provide them with embroidered collars, leashes and bandanas.
Even though Etier hasn't done business in the pet apparel market before, she's had practice. "I've done items for my dog, the personalized collars and leashes and things like that," she says. "I don't really have that many product pictures of pet apparel on my website, but I've gotten questions from people on whether I do pet apparel."
Etier says there are a good number of pet stores and doggie day cares in her local area that may allow her to come in and take orders for customers' pets as a value-added service. And, she has no problem with cold-calling new prospects.
Since she only has a single-head machine, Etier decided it would be a good idea to focus on short runs and personalized orders – and pet apparel fits right in with that idea. "This is probably where I'm going to make the most money at this point, because if I'm doing 100 shirts with the same logo on it, that's going to be a lot harder for me than for someone with a multi-head machine," she says.
And, Etier admits that determining what to charge for her work (following the per-stitch model) and determining her business goals has been tricky. "I really don't have a good handle on how much each stitch will cost me," she says. "This happened for a few reasons: I expected that I might move; I was anxious to just jump in and start embroidering products; and I just couldn't find the time to sit down and focus on it." She has also drafted portions of a business plan, but hasn't completed it.
The Mentor's Take
By specializing in short runs, Saundra Rodgers, owner of Branson, MO-based Works of Art Embroidery, says Etier can maximize her time by focusing on small orders, and she can charge more for personalized items, especially in pet apparel and collars. "When I first went into the business, I had a single-head and we tried to do a lot of corporate stuff with a one-head, which you can't do," Rodgers says. "So, we started doing individual, personalized things until we got a multi-head."
Rodgers points out that when a decorator sets up her machine for personal items, "You spend the same amount of time to set up one as you do for a multiple run," she says. "This, of course, will increase the cost of one single item as opposed to setting up one time for multiple items. People who just have a single-head machine don't usually take into account the time they spend setting up and hooping, as well as running the design itself, so they cut themselves short in cost to the customer. Bottom line: Brooke needs to realize that if her customers want personalization, they need to pay more for it." Rodgers also points out that if Etier determines her long-term goals, such as whether she wants a home- or retail-based business, she can decide how much income she needs a month to support her operating expenses and turn a nice profit, as well.
The Result
Rodgers sent Etier an Excel pricing sheet created by Jimmy Lamb, manager of communication for Sawgrass Technologies, to help her determine how much she should charge for each item she embroiders. "It'll really help her with pricing on her single-head machine," Rodgers says. "A lot of this will depend on her time spent on her software, which doesn't seem to have good support or help, so she's stuck right now spending a lot of time learning it – with no one to help her learn."
The time that Etier could spend in figuring out pricing information has been taken up by her embroidery software struggles. She has been unable to obtain much vendor support for her current package from the vendor, she reports. "The only phone number that's on the software box is an Argentinian number," says Etier, who's talked with Rodgers about investing in a different software package. "There's no training, and even the YouTube videos that Saundra found for me – a lot of them were in a different language or didn't have any words or anything; they were just pictures, so I didn't understand what they were doing. I could invest a ton of dollars learning it, but if that's not what I want to use in the long run, it's really just a waste."
Once Etier decided to focus on the pet apparel and personalization market, Rodgers helped her start rethinking her business plan – on a very basic level. "I told her exactly how to start it and bullet-point it, and create one-year goals as to where she wants to be a year from now, and then to draft her long-term goals," Rodgers says.
"Personalization, in the pet market and for individuals, is where Brooke is going to make money. For right now, she needs to just focus on what she wants to accomplish in the next year and to figure out how she's going to get there, and create a business plan."
Week Two
Look Into Software, Revise Pricing and Contact Prospects
Step 1: Research new embroidery software.
Step 2: Lower your stitch count.
Step 3: Contact 10 pet stores.
The Challenge
Etier began this week by taking a close look at other embroidery software possibilities to replace her current, frustrating software. "What I ultimately decided was that, instead of investing the time in the software I had, I was going to look at getting the software I want long-term," she says. "I'd like to try working with Pulse DG/ML software, which seems to be very well supported in the U.S. and elsewhere. The vendor also offers a lot of training classes, from in-person classes to webinars. Those are all things I'd really like to have in a company to work with long-term."
Etier also wanted to begin to lower her stitch counts to maximize her profits. She noted what Rodgers told her: that a lower stitch count can look just as good on any garment or accessory when done well.
And, Etier made a goal to contact 10 local pet stores and try to arrange appointments with them. "I'm just hoping that I can get five of them to see me," she says, adding that once she gets her foot in the door and is able to create one quality personalized pet-related item for a pet store's customer, she's confident that it'll lead to more long-term business.
The Mentor's Take
Rodgers thinks that Etier's "five out of 10" goal is a realistic one. Rodgers notes that cold-calling only generates a 1% sales success rate, but an in-person sales pitch bumps the chances to 10% to 15%. "If buying embroidered apparel is something the buyer has thought about already, she's got a 90% chance to get it," she says.
Rodgers also gave Etier tips on how to lower her stitch count without sacrificing quality in the eyes of most consumers, and advised her to find bags that wouldn't perforate as easily when stitched. "We talked about stitching dog collars, and we discussed her current bags – they're cute, but the linings aren't very strong," Rodgers says. "The problem with the bag lining is that it's a cheap plastic liner, and when Brooke is sewing it gets perforated and gets entirely punched out."
Rodgers suggested that Etier locate a different bag, but since these bags are so popular with her customers, Etier wanted to try to work around the lining issue. "So we went to plan B: getting around the lining," Rodgers says. "Brooke could heat-seal the back, but considering what it's made of, it could melt, so I suggested making her monograms as a patch to appliqué on the bag, thus eliminating the continuous needle punching that causes the lining to perforate apart."
The Result
Etier was especially busy outside of work this week, but she still made the time to contact five pet businesses. "They've all been open to letting me drop off a brochure, and that's as far as I've gotten," she says. "One said that I can call back later in the week and make an appointment." But, she wasn't discouraged. "Nobody has said, ‘No,' or been rude," she says.
Etier also heard back from a Pulse rep, who offered to help her select the right software for her machine. "I got an e-mail from him asking if he could get some photos of the machine," she says. "That was something on my to-do list that I did complete. He has been very helpful. I'm exchanging some e-mails with him as far as what can be done there."
And, Etier took Rodgers' advice and decided to use heat and reinforce the embellishment process on the bag with a double-run stitch that's not dense enough to perforate the rest of the bag. "It still looks good," Etier says.
Week Three
While Working With Potential Customers, Nail Down Long-Term Goals and Pricing
Step 1: Focus on writing a more solid draft of a basic business plan – and consider services you'll offer.
Step 2: Think more seriously about pricing.
The Challenge
In a very good way, Etier was caught off-guard this week when she was contacted by three small-business owners about possibly creating embroidered apparel for them.
Why? Because none of them were on Etier's list of businesses to contact. "I've used Craigslist for awhile – the small-business ads – so I guess that's where it's coming from," she says. "They could benefit from my background in marketing, as well, but I'm not really sure how to approach that." For example, she says one client asked if she could digitize a logo. The problem is that the prospect seemed unwilling to spend the money to digitize the logo – and, Etier was concerned about possible copyright issues with the logo.
Etier also had a couple of great brainstorming ideas: She wants to create an advisory panel of five local business owners with experience in the pet accessory area, and she wants to use social media to further communicate with her customers. "I want to be sure I'm offering the right products to fit my target markets, so I'm going to put up polls on my Facebook page to try to get people to give their opinions and be more interactive," she says.
And, now that Etier feels like she has that direction in terms of a potential niche, she believes she's ready to move on toward creating a more detailed, long-term business plan. She also attended one of ASI's virtual trade shows (get more info at www.asishow.com) this week, where she made contact with some new suppliers that she hopes can help her cut some of her decorating costs by offering lower-cost blanks or supplies.
The Mentor's Take
Rodgers said it would have been futile to put Etier in front of a computer and tell her to type up a business plan before she decided on the market that she was going to target. "The embroidery business is very unique," Rodgers says. "You can do a basic plan, like, ‘Here, I'd like to double my business.' But, doing a big marketing plan is pointless if you don't know how much time and money you're going to spend. Well, now Brooke's got a plan. She knows what she's doing and where she's going."
Rodgers also advised Etier not to let the potential copyright issues deter her from offering marketing services to clients. "I'd say 90% of the people who are just starting a business change their logo three to four times," Rodgers says. "In this case, you can ask clients for documentation that they own the logo and images, and you can freely work on it or reproduce it."
The Result
Rodgers e-mailed Etier a very detailed business plan document that Rodgers' son created for her when she began her business. "It's tailored to an embroidery business," Rodgers says. "A lot of it really gets down to nitty-gritty specifics. For Brooke, who's just starting out, she might not need to answer all of those questions now. But, I've been in business for 12 years, and my son wanted me to get serious about writing five- or 10-year goals. The template asks a lot of specific questions to help a business owner do that."
Rodgers also told Etier that she has run into similar potential logo problems, and advised Etier to proceed with a new design possibility for that client. "For example, you can tweak the design by getting rid of all the background and giving them a good, clean stitch-out," Rodgers says. "Ninety-nine percent of the time, they've accepted my revisions – and that will come to Brooke with experience."
Etier's ASI virtual trade show experience helped her to find alternate suppliers, and she also downloaded educational materials.
The Ultimate Wrap Up
During the third week of her mentoring experience, Etier moved from Atlanta back to Alabama where her family is located – she feels that Alabama will offer her a lot more sales opportunities while she's getting her business off the ground.
"Relocating and being close to my mother and sister is really giving me the support I had been missing, because they both have a strong interest in my business," Etier says. "I'm very, very excited about that. I think that will help, combined with a lot of the more-technical things that I've been able to ask Saundra about."
For example, Rodgers advised Etier to reduce her font offerings to her clients. "If people are overwhelmed with choices, they can't make a decision, so they don't buy at all," Rodgers says. "She suggested that I offer probably no more than 10 per category. So I could maybe have 10 script fonts, and then put out special ones for holidays and things like that," Etier says.
Rodgers really pushed Etier to take full advantage of Lamb's Excel worksheet for determining cost per item. "You input literally everything that's costing you money to figure the final cost of stitching the item," Rodgers says. "This worksheet breaks down all of the shop and work-time costs, and gives you a clear picture of what it takes to make money for your shop. It's a wonderful tool, especially when you're starting out and have no idea how to price."
Etier admits that the worksheet has already been huge help. "I'm actually using the pricing spreadsheet now to work backward and determine if adding a building or room onto the house is a good decision vs. renting commercial space," she says. "It has allowed me to come up with a budget for the building, if I decide to go that route, and has given me a good idea of the amount of work I'd nee d each month to cover that cost. Without Saundra's pricing help, we'd really be guessing at this."
One big benefit to Etier's relocation is that her stepfather has coached a women's basketball team at the same local high school for 25 years, and now sells athletic apparel to many elementary and high schools in the area. She says he'll be able to provide plenty of decorating opportunities for her in terms of uniforms and spiritwear.
"There are a lot of other opportunities, as well, as there are several pet supplies retailers and independent doggie day cares in the area," Etier says. "That's where I'm going to focus. I'm also going to go form an LLC, now that I'm confident this is where my business will be based, so I can set long-term goals in my new business plan."
Despite the recent move, Rodgers says Etier has made excellent progress as far as focusing on a niche, and having her family to assist her in watching her son will afford her more time to focus on her business. "Her biggest challenge is time, and she's progressing with that," Rodgers says. "She was overwhelmed with information, and we've tried to streamline what she's doing. I know she's wanted to gain some corporate and small-business clients. Now where she is with the contacts she has, she'll probably be better off doing it. She's got a lot of tools to work with."
SHANE DALE is a contributing writer for Stitches.