There's no law that says you have to borrow scads of cash to start a business. The latest issue of Report on Small Business Magazine features entrepreneurs who had bootstrapped their way to success in No Money, no problem . What is their secret?
Meet Jen Kluger, 27, and her business partner, Suzie Orol, also 27, founders of Foxy Originals. They have parlayed their handmade jewellery business into a thriving venture.
They have been able to put their own unique twist on providing a product or service that people want or need. And, they were unwavering in keeping their costs down. They were also willing to invest sweat equity in an idea they believed in.
To service the dozens of American stores that carry Foxy Originals, they employ eight U.S.-based sales reps, who are paid a 15 per cent commission. "Our business model today is very similar to the one we had eight years ago," Ms. Kluger says. "We keep a nimble staff. We have minimal inventory, and we turn it around quickly."
Ms. Kluger and Ms. Orol are online now to answer your questions and discuss their experiences growing their business.
So Strap yourself into their boots and find out why it doesn't always take money to make money.
Sasha Nagy, Business Features Editor, globeandmail.com writes: Dear Jen and Suzie:
Thanks so much for taking some time to answer reader questions about your business, Foxy Originals. In the Report on [Small] Business article entitled, No Money Down, it was reported that you started your business selling on campus, while you were at university.
I am interested to find out when you first thought that you would make it your career. Was there one moment? Or did it evolve over time? Did you get any specific feedback from customers that made you believe?
Jen Kluger: Thank you for your question. When we were in university, we really considered Foxy to be a part-time summer job and weren't sure if we were going to make it a full-time operation. Then, in 2001 we were awarded the CIBC ACE (Advancing Canadian Entrepreneurship) Award, and received so much support from the Canadian business community. It was this award that gave us the confidence to take our business to the next level. We opted out of full-time job offers in the corporate world and began working for Foxy upon graduation. We haven't looked back.
C.L. Taylor from Montreal writes: How do you plan to compete against mass produced product as you expand? Do you feel you can keep your production costs in check and stay in Canada? What tradeshows have been most successful in launching you? Is the U.S. key to growing a business at the start?
Jen Kluger: Tradeshows are an essential way to grow a business in the jewelry industry. We didn't enter the U.S. market until our third year of business, as we wanted to ensure we developed a name in the Canadian market before focusing our energy south of the border. In Canada, the most important trade show a jewelry designer can exhibit in is the Mode Accessory show . This is the largest wholesale jewelry show in Canada. A great resource to check out for US trade shows is www.style.ca , Canada's Fashion trade publication.
Suzie Orol: Good Question! Competing against mass produced products as we expand will always be a challenge. Our primary strength is our ability to stay ahead with our design. As long as our designs are innovative and fresh, we hope to keep the loyalty of our customers. Starting in Canada was a great strength for us, as our customers' loyalty has been tremendous. Even with the growth of mass produced products, there will always be a niche for uniquely designed products. We are proud to produce our products in Toronto, Canada and have all intentions of keeping it this way!
jim vanden berg from Calgary writes: How did you first get distribution arranged? How did you go from having a good product to getting it out to the world and on store shelves?
