Months ago I learned that Canadian mompreneur, Karyn Climans founder of Tail Wags, was going to make a reappearance in the Den. So it was with great anticipation that I watched last night’s Second Chances episode. Entrepreneurs who had unsuccessfully pitched the Dragons in past seasons were given an opportunity to plead their cases again.
Two years ago Karyn debuted her line of plush helmet covers on national television. Although the Dragons were enamoured with her Canadian-made line of products, they disagreed with the valuation of her company and she didn’t get a deal.
Not this time!
This round Karyn made two major changes to her pitch. First, she came in with a more modest valuation – something the Dragons could easily wrap their heads around. Second—her secret weapon—the promise of a huge order of Tail Wags products: An order from Canadian Tire for 10,000 units. The Dragons know that one big order from a mass retailer could lead to a) further orders from Canadian Tire down the road, and b) orders from other mass retailers. Selling your products one at a time or to small boutiques is one thing, but the Canadian Tire order demonstrated the major demand for Tail Wags products and allowed the Dragons to see the potential in the company.
Bruce Croxon and Jim Treliving offered Karyn $100,000 for 30% of her company. Karyn accepted the deal.
But that’s not where this story ends. Eight months later, Karyn has had time to mull whether she actually wants to give up 30% of the company that she’s worked so hard to build. It’s also given her time to consider whether she can raise the funds she needs without giving up a share of her business. In our research for Mom Inc., we found that most small businesses raise money from their families, or by taking out bank loans. (Check out Karyn’s web site where she explains her current situation.)
After watching Dragons’ Den all season, I’m delighted to have the opportunity to write about “one of our own.” (Karyn has contributed to YummyMummyClub.ca here and here.)
Karyn, it was brave of you to venture into the Den the first time. But the second time? That took chutzpah. Congratulations on your well-earned success. We're celebrating right along with you.
For more about the importance of protective gear for kids check out Karyn’s YouTube video.
Ah, January. Maybe it’s the cold, the eggnog-induced five extra pounds or the impending credit card bill. Anyway you slice it, getting revved up for work in the new year isn’t easy. But here’s the good news: We’ve got five sure-fire ways to start making more money in your business right now. That should get your fire burning!
Cut a Cost
We guarantee that you are paying too much for something in your business. Either you’re paying for something you don’t need (extra phone services, a subscription to a publication, an inefficient employee or contractor), or you’re overpaying for something that you could get for less (office supplies, your web site designer). Finding ways to lower your costs means more money in your pocket. Remind Your Customers About Your Business
It’s always a good idea to reconnect with past clients. It helps keep you front of mind and it can drum up some business. Recently, our print broker contacted us to ask if we had any printing needs and, lo and behold—yes we did. Simply by reaching out to us, our print broker picked up a piece of work. You can also send an email blast to your customers. And why not sweeten the deal? See if you can provide an incentive for your customers to do business with you again. When we issue a newsletter, we always offer a coupon to our customers. It never fails to spike our sales. Reminding people about your work is always good for business. Expand Your Services
One way to boost your sales is to try to get more money from your existing clients by offering them more. At Admiral Road, we used to only sell blankets. We’ve since added other items—books, stuffed animals—as a way to increase the average purchase on our web site. If a customer is looking to spend money, we want it to be with us!
Raise Your Prices
When was the last time you compared your prices to the competition? Are you undervaluing what you do? Is there room in the market for a modest increase? If you can reasonably justify raising your rates, you’ll see an instant impact on your revenue. Let Go of Something on the Home Front in Order to Boost Your Productivity
Now is a great time to evaluate how you’re spending your time. As moms, we know that there just aren’t that many hours in the day available to work on our businesses. If you can agree to give up something you do around the house, you’ll have more time available to grow your business. Maybe it’s worth paying the dry cleaner $1 a shirt instead of ironing. Maybe you can get take-out once a week. Or a house cleaner once a month. When you do the math it’s likely worth the money to outsource something at home so you can bump up your bottom line.
So why not kick start the year by resolving to tweak at least one aspect of your business in order to make more money? And whatever you choose, we wish you a wildly successful 2012.
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