Teaming up for success

I have worked with entrepreneurs for over 25 years, and most of the successful ones have created and developed their products on their own and love to be independent. “Being my own boss” is the answer I usually get when I ask them what they like best about being an entrepreneur.

But in fact, successful entrepreneurs are not lone rangers, which, for inexperienced entrepreneurs, should be considered a good thing. I’ve talked to over 100 successful entrepreneurs in the last 10 years, and they often don’t have a lot of business management experience, don’t have more money than the average person, and typically have never tried to introduce a product. before.

The key moment in their entrepreneurial process has been when they recognized their shortcomings and sought help from other people. That help is exactly what they need to be successful, and it can come in hundreds of forms, like these:

• A manufacturer willing to extend the date of orders
• An independent sales agent or industry member who offers advice on getting a product to market.
• A retailer who heavily promotes their product at their expense.
• A manufacturer funding its research and development for the option of a private label contract
• A marketer who shares a booth with you at a major convention or introduces you to key industry buyers.
• An industry connection that helps you finance your initial production run
• Another entrepreneur who tells you the best fairs and events to attend, and helps you price your product
• A manufacturer that lets you use their model store to produce their products in exchange for help filling backorders on Saturday.
• An industry insider who first invests in your company and then comes to work with you to make the product a success.
• A retailer who puts you on a provisional order (will buy when and if you can deliver) so you can get a manufacturer to finance some initial production.

You need to think about the kind of help you’ll need early on, even before you start to bring a product to market. If you can prototype and make your product at home, you can probably survive on your own until you’re ready to sell. But most entrepreneurs have products that require a little more upfront investment, and could go bust if they wait too long for expert advice. Not only that, but getting help early will prevent a lot of mistakes in building your product, helping you save money for the crucial tasks ahead.

the lone ranger is dead

The product life cycle today is short, very short. Products can come and go in just two or three years, and this dramatic change presents both problems and opportunities for entrepreneurs. On the one hand, entrepreneurs cannot afford to work alone and follow the normal two to five year process to bring their product to market, since in that time the market may pass them by. This means that entrepreneurs cannot be independent, cannot control everything that happens with their product, and may have only a few years of successful sales.

The good news is that established marketers and manufacturers have an even harder time getting to market quickly, so nimble entrepreneurs can beat them. Large manufacturers are responding to this challenge by working with an increasing number of outside companies, including entrepreneurs, to stay ahead of their markets. This also means that manufacturers, marketers, distributors and retailers are generally willing to help entrepreneurs. All you have to do is ask.

The simple fact is that teamwork equals success. In today’s crowded marketplace, sole proprietors have a hard time standing out and getting noticed. To build the necessary size and momentum, you need resources, and if you don’t have them, you need to partner with someone who does—someone who has the money, manufacturing prowess, or distribution reach to convert a new product. in a hit.

Every month I hear at least one new story of an entrepreneur who forms partnerships to succeed. Below are examples of three entrepreneurs who have done this, and they are just the tip of the iceberg. If you stay alert, you’ll read about other examples in your local newspapers and business magazines. Could that other person’s experience work for you? Remember to always be on the lookout for opportunities to make alliances.

• Karen Alvarez of Dublin, California invented the Baby Comfort Strap, a product that keeps children safely strapped into shopping carts. When she started her company, Baby Comfort Co., she was referred to Safe Strap Co., a manufacturer that sells shopping cart straps to supermarkets. Álvarez asked Safe Strap for help, and the company agreed to make small quantities of Álvarez’s product and 90-day payment terms to help launch the product.
• Nathaniel Weiss, founder of G-Vox, a Philadelphia-based music company, started with a bundle of hardware/software products that automatically transcribes notes played on a guitar into sheet music. His product allows guitarists to work on a new song without constantly having to stop to write each note. Weiss has had an advisory board from the beginning. His big break came when he formed an alliance with Fender Guitar Co. Fender agreed to sell his product to guitar shops, as an accessory and as an option on Fender guitars. Once his company generated some initial sales success, Weiss went out and found several marketing people with extensive experience selling to retail music stores to push his product to market.
• Gary Lewtschenko of Glenmore Park, Australia, had worked for six years on his Anywhere Tent, which can be installed in mud, shallow water, over fallen trees or rock ledges, without achieving significant market penetration. Then, in 2005, he hired four partners with experience in new business development, who put his expertise and $75,000 into his company. Lewtschenko gave up 80 percent of his company, which may sound like a lot, but he feels it was a good deal, and sales rose sharply once he found partners. His plan is to use the proceeds from Anywhere Tent to launch other products on his behalf through his company, Unique Creations. As for Lewtschenko’s partners, who were judges on Dragon’s Den, a television competition looking for exciting new products, they also got what they wanted: a large share of a new product that they felt had a real niche in an up-and-coming market.

The factory of new products

There are three tasks involved in launching a successful product.

1. Finding an opportunity in the marketplace and then creating a product to fill that opportunity. The well-conceived product satisfies a consumer want or need and can be produced at a price that provides value to buyers. This is normally the strength of an entrepreneur.
2. Manufacture of the product. Tooling, manufacturing fixtures, working capital, quality control, value engineering, product liability insurance, regulatory approvals, and a host of other complicated concerns are the purview of the manufacturer.
3. Marketing of the product. Pricing, packaging, promotional assignments, and connecting with top buyers are some of the simplest tasks in marketing. Understanding customer needs, positioning the product to sell, creating a memorable brand and product image, and finding customer hot spots are some of the tactics marketers use to successfully introduce a product.

As you consider these three tasks, ask yourself: Does it make sense for entrepreneurs to try to do whatever it takes to get a product to market? I do not think. Every new product development, marketing, and manufacturing job requires a wealth of experience. Your goal as an entrepreneur is to learn how to use other people so that both you and they make money. Once you do, you can spend your time being creative and inventing new products.

Unfortunately, there is no single way to find partners. Each market and each product are different and require a particular approach; For each new endeavor, you’ll need to go to trade shows, make industry contacts, and find the right manufacturing and marketing partners. But once you get the hang of finding partners, you’re only limited by your creativity and your ability to come up with new ideas that the market wants.