Finding Success the First Time Around
Second time entrepreneurs certainly have an advantage, bringing experience and contacts to their newest ventures while first timers often seem to flounder. One area where that empty Rolodex will hurt you is in getting venture capital. However, as this small business success story shows, with a great idea and a lot of diligence, even a newcomer can woo investors.
Sarah McIlroy had years of experience working in marketing for a variety of large corporations, such as Atari and Hasbro Interactive. She noticed that customizable experiences were extremely popular with her tween daughter and friends, but that no fashion brands were allowing them to create affordable customized clothing. She knew from her experience with Hasbro interactive how to market to these young customers, but investors were a whole other matter. Opening a fashion company is one of the most expensive small businesses to open, because the product must be developed and complete before any other phases can begin. McIlroy knew that she would need investors to make her dream a reality.
When McIlroy went looking for investments, she had a barely functioning Fashion Playtes website with just five apparel items and trickling traffic from family and friends. She also had a new vice president, Mary Beth Tirrell, who brought experience in the apparel market to the table. However, capital was not forthcoming. Several investors told the pair that without at least a million dollars in sales, getting capital was nearly impossible in the unfriendly economic market. However, the intrepid CEO kept asking until she found a firm that believed in her idea as much as she did.
When Tim Rowe of New Atlantic Ventures heard about McIlroy’s idea, he was more than interested. With a nine year old daughter at home, he suspected there was a huge and heretofore untapped market for customizable tween clothing. When he came home from work that day, he showed his daughter and her friends the Fashion Playtes website and was shocked by their immediate enthusiasm. He knew that this idea would be a winner under the right circumstances and was willing to invest in the venture.
New Atlantic Ventures gave McIlroy the capital she needed to expand her line and get the company website up and running. Today, Fashion Playtes has a growing line of basic clothing, all of which can be customized with details such as ribbon, appliqués, printed images, and rhinestones. While the website and the brand are still in the very earliest stages of development, they are open to the public and pushing product. Buzz is beginning to build among this fickle and brand conscious crowd, suggesting that Fashion Playtes may be the next big fashion statement in school yards around the United States.
What can other small businesses learn from this story? First, that experience may be a good thing to bring to the table but it is by no means mandatory. If you have a truly great idea and keep selling it to others, someone will take an interest. Second, concept is everything when it comes to getting venture capital. Your brand and your product must be strong enough to stand out in the crowd of small businesses looking for investors.
