Five important business lessons all product entrepreneurs must know
Kove & Co founder Krystal Rand shares five crucial lessons she wishes she had learned before starting her journey that could benefit other product entrepreneurs.
When you land on an amazing business idea, it’s easy to get carried away, romanticising the future and over-simplifying the path to get there — especially if you have no prior business experience.
When I first came up with the idea for Kove and Co’s signature Tribe Bag in 2021, I naively thought it would be a relatively simple and straightforward process; sketch it, pick a colour, have it designed and manufactured, and watch the money roll in. It took 18 months from ideation to get the Kove and Co bag into the hands of customers, proving that launching a physical product is far more complex than I anticipated.
There’s an array of areas all small business owners need to upskill in – marketing and sales, accounting, branding and customer experience — but others are more unique to product businesses. I’ve learnt a lot the hard way and, while I’m proud to have overcome these challenges, there’s five crucial lessons that could benefit other product entrepreneurs.
Test before production
I underestimated how critical it is to test a prototype before mass production. Who knew there was such a polarising difference between moss and sage green? And how a soft caramel on a colour swatch can look like baby poo in the flesh – not really the optimal hue for a nappy wallet.
Differences in colour and material can be stark between a digital render and the final product. A minor design change, like altering a button, can also affect usability significantly.
It can be tempting to skip this step, saving precious revenue by going straight to a full product run, but failing to first develop a pre-production sample prototype can be costly. Hands-on testing to make last-minute tweaks ensures the final product meets expectations and reduces the risk of unsellable stock.
Engage with customers to build brand advocacy
Customer feedback is invaluable. When a Facebook comment revealed that the logo on our strap buttons was scratching off, I realised the importance of staying connected with our customers. It was the first I became aware of the issue and I was alarmed. We quickly addressed it by replacing defective buttons and updating our stock which was an arduous manual process. This proactive approach helped maintain our brand’s reputation for premium quality.
Keeping your ear to the ground and providing avenues for customers to easily give feedback helps identify and resolve issues before they escalate.
Plan logistics early
Effective logistics planning is crucial for product businesses as storage, packing, transport and shipping become your whole world.
I store my bags at a warehouse 10kms from home and transport them in my car every few days to pack them from home. I have a tiny car and limited storage at home leading to frequent trips. Additionally, when determining which boxes to buy to ship the individual bags out to customers, I calculated the measurements slightly wrong as I hadn’t considered the cardboard width itself, this small mistake unnecessarily cost me $5 per box.
Proper logistics planning saves time and money, enhancing overall efficiency. Try to choose a warehouse close to your packing area, ensure you have a suitable vehicle and home storage at home, and triple-check if your packaging dimensions are accurate.
Anticipate criticism
It’s essential to critically evaluate your ideas from all angles. Sometimes business owners can be so laser-focused that they forget to stress test ideas and consider how they could be misconstrued.
I nearly launched an interactive social media campaign that requested people send videos of others with our bag in public for the chance to win a bag. I figured this would drive user-generated content I could then re-share and would showcase all the use cases of the bag – as an esky, carrying a puppy, grocery shopping, at the beach and pool.
Although well-intentioned, I had not thought it through and considered how the idea could have been perceived as intrusive, particularly as it involved filming strangers and children. Considering how your ideas might be received, especially by sceptics, helps avoid potential reputational damage.
Monitor financial timing
Successful sales don’t always equate to financial health. I thought as long as bags are selling then the business is going in the right direction. It sounds obvious, but the timeframes of money from sales coming in, in context with the overheads and expenses going out, determines whether you are slowly going backwards or getting ahead.
Understanding the timing of cash flow relative to expenses is vital. Product business owners need to grasp financial metrics and their implications. Regularly reviewing financials to evaluate what needs to change will ensure profitability.
I gained immense respect for other product entrepreneurs through these experiences and appreciate the resilience and conviction you need to overcome the inevitable unpredicted curve balls that get thrown your way.
I hope these insights help others embarking on their product journey, saving them tears and stress and supporting them to achieve success in their product ventures.
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