Extra for experts: Idea to Income – Starting a Business

The recent Westpac Smarts Webinar: Idea to Income – Starting a Business featured Marisa Fong, founder of re:ampd and Coating Services Ltd, and Shenine Dube and Grace Tuber, the co-founders of DOE Donuts (pictured above).

The Q and A following the webinar was so good we've decided to share it here on REDnews:

How did you find the right business mentor?

Marisa: I had a great business partner who was older than me so she was a great mentor. Externally, I have looked for mentors that are not the same as me so I can learn from different perspectives. Plus asking people in your network. Sometimes just having lots of coffee meetings to see if you click as well.

Shenine & Grace: Grace and I connected with a friend who was just starting his own business consultancy. We trusted his approach and found it really helpful early on. We also leaned on successful family members who have great careers and could offer real financial guidance. It was about finding people with real experiences and people who uplifted us but also challenged us and made us think outside the box. Also if you can find people who can give you free advice that's the best approach!  

Did you think about your sales funnel when starting out? The opportunity to close deals or sales?

Marisa: One of the key areas I always ask budding entrepreneurs is if they know they can sell - as without sales, you don’t have a business. So I advise people to build networks in the niches/industry they want to sell to. Offer services for free to get testimonials and to seek feedback. But yes, you must have a route to market, a distribution strategy or access to customer lists/databases or know how to build one.

Shenine & Grace:  Honestly, no (LOL). Not in the formal sales funnel sense. In the beginning, we were just focused on creating a product people loved and getting it in front of them. But we were always thinking about the customer journey. From the first moment someone saw us on Instagram, to how easy it was to order, to how they felt when they got their first donut. Over time, we started to understand what turned casual followers into loyal customers, and we kept building from there - customer retention.

Where do you start in obtaining a cohort of individuals from your target market to prove that there's a demand of the product (or service) that people are inclined to pay for? How do you motivate people to talk to you?

Marisa: In NZ, we’re lucky that most people are happy to help. I found the best way was to pick up the phone and start calling or use social media posts asking for your ideal customer to try your product or be open to a call for your own research. Outline what you’re trying to achieve, what problem you are hoping to solve and be specific about your ask. Give free product or free trials to incentivise people to participate. And then ask for referrals to others. Make sure you treat them well and hopefully they will spread the word.

Shenine & Grace: We knew donuts were popular in Australia, it was the "it" thing and clearly working well over there. But for us, the key was finding our point of difference. Once we finalised our products, we started small with pop ups, markets, and online drops. Each one was a test. If it didn’t go well, we’d take it as a sign that something needed to change, maybe the product, the price point, or the way we were communicating it. Every time we sold something, it was feedback. We watched what sold quickly, what people came back for, and what got shared on Instagram. We also made a real effort to talk to people. We replied to every email, social media DM, asked questions in person, and paid attention to how people responded. Sending your product to people or trialling your service with individuals or businesses is another great way to get insight and understand if there's real demand.

 Any tips on identifying key networks that may open doors?

Marisa: Depending on your product/service, trying industry associations or membership groups can be helpful. Also attending any conferences, or industry days or expos so you can network and introduce yourself to people. Have a clear elevator pitch that you can say in less than 1 minute that makes it clear what you do, who you do it for and how it solves a problem.

Shenine & Grace: Look for people in similar spaces, other small business owners, creatives, even suppliers. Some of our best opportunities came from collaborations or people we met online. Instagram was a huge connector for us. We shared our journey and people naturally connected with it. If there’s a business or person you admire, reach out. So many people are open to chatting or offering advice. LinkedIn is also a great place to find like-minded people. It might feel intimidating at first, but most people are happy to help if you show genuine interest and initiative.

Marissa, what make a good business plan?

Marisa: First knowing your purpose, what unique advantages you have and what your vision is for the business. Then, working on a plan that will deliver on your vision. So say if you want to be selling x units for $x in x countries within 3 years to x client, you need to have a first year plan that sets you up for that. It also needs to include your financials such as revenue, cost to deliver, growth strategy and resource planning. Plus, what are the metrics that tell us we’re on the right track and who does what.

 Shenine and Grace, you said you didn't have a license when you started - did you get fined?

Shenine & Grace: No, we didn’t get fined, but we did get a warning! It’s really easy to overlook compliance when you’re focused on getting your product right. Our advice now would be to research what license you need early and get your paperwork sorted from the start. It’s not the fun part, but it saves you a lot of stress later. If we could go back, we’d have sorted our license and food control plan from day one.