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kimberland
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- Jul 25, 2007
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Second guest was Sandra Wilson, founder of Robeez.
Sandra Wilson is a classic Mompreneur.
Over 12 years, she built the baby footwear company
into a $30 million in annual sales company
before selling it to Stride Rite.
What Prompted The Business Start?
After coming back from maternity leave,
she got laid off from corporate.
She knew she didn't want her son Robbie in daycare
so she wanted a business to replace her salary.
The Idea
Robbie had "chubby little feet and no shoes fit him"
so she cut up an old leather purse
and with her "grade 8 sewing", made a pair of indoor shoes.
Proud of her creation, she showed them to everyone
and the feedback was overwhelmingly positive.
The Start
She bought more leather retail (she ran out of old purses)
and asked speciality boutiques to sell them on consignment.
Sales were slow but the feedback very, very good
(raving fans, she says word of mouth is how the company grew).
She made up 30 pairs
(begging favors from everyone and renting equipment)
and brought them to a trade show.
She got 15 orders and "thought she hit the jackpot."
Then she realized she "had to make 300 pairs of shoes."
Her "husband spent an entire weekend cutting the leather."
She outsourced to a home sewer (and would use home sewers for the first 5 years).
At the next trade show,
she met a sales rep (a Grandma) who took her on a commission basis.
The Plan Vs Reality
Her plan was to replace her corporate salary within a year.
The reality was that for the first 5 years,
she took absolutely no money out of the business
and kept her business operating out of her home.
In her first year, sales were $20,000.
To pay the bills, they rented rooms to students.
What Kept Her Going
"It takes a lot of perserverance."
"What kept me going was a lot of positive feedback."
Financing
The company "always financed out of sales."
She did take on two partners, her brother and her former business teacher
but that was because she "wanted someone to share it with."
Pricing
At first, Robeez were priced too low.
A consultant advised she raised her pricing and for the 12 years,
it remained constant.
Direction
One of her recurring questions was
"are we a shoe company or a baby accessory company?"
"We knew we weren't shoe manufacturers."
"That isn't a core competency of ours at all."
It is important to "know what you're good at."
Selling The Company
Selling the company,
Wilson says "was the most difficult decision I had to make in my life."
She felt that they "had taken the company as far as we could."
"We were not the people to take it beyond $30 million."
She didn't feel they had the knowledge base
and the company needed financial resources.
Next Steps
She's not thinking of a new start up yet ("my head and my heart are still so much at Robeez") but "I've learned so much that its almost a shame not to put it to work."
Advice To Mompreneurs
Ask yourself "what are you trying to achieve?"
"Just to replace the income takes a lot of work."
Sandra Wilson is a classic Mompreneur.
Over 12 years, she built the baby footwear company
into a $30 million in annual sales company
before selling it to Stride Rite.
What Prompted The Business Start?
After coming back from maternity leave,
she got laid off from corporate.
She knew she didn't want her son Robbie in daycare
so she wanted a business to replace her salary.
The Idea
Robbie had "chubby little feet and no shoes fit him"
so she cut up an old leather purse
and with her "grade 8 sewing", made a pair of indoor shoes.
Proud of her creation, she showed them to everyone
and the feedback was overwhelmingly positive.
The Start
She bought more leather retail (she ran out of old purses)
and asked speciality boutiques to sell them on consignment.
Sales were slow but the feedback very, very good
(raving fans, she says word of mouth is how the company grew).
She made up 30 pairs
(begging favors from everyone and renting equipment)
and brought them to a trade show.
She got 15 orders and "thought she hit the jackpot."
Then she realized she "had to make 300 pairs of shoes."
Her "husband spent an entire weekend cutting the leather."
She outsourced to a home sewer (and would use home sewers for the first 5 years).
At the next trade show,
she met a sales rep (a Grandma) who took her on a commission basis.
The Plan Vs Reality
Her plan was to replace her corporate salary within a year.
The reality was that for the first 5 years,
she took absolutely no money out of the business
and kept her business operating out of her home.
In her first year, sales were $20,000.
To pay the bills, they rented rooms to students.
What Kept Her Going
"It takes a lot of perserverance."
"What kept me going was a lot of positive feedback."
Financing
The company "always financed out of sales."
She did take on two partners, her brother and her former business teacher
but that was because she "wanted someone to share it with."
Pricing
At first, Robeez were priced too low.
A consultant advised she raised her pricing and for the 12 years,
it remained constant.
Direction
One of her recurring questions was
"are we a shoe company or a baby accessory company?"
"We knew we weren't shoe manufacturers."
"That isn't a core competency of ours at all."
It is important to "know what you're good at."
Selling The Company
Selling the company,
Wilson says "was the most difficult decision I had to make in my life."
She felt that they "had taken the company as far as we could."
"We were not the people to take it beyond $30 million."
She didn't feel they had the knowledge base
and the company needed financial resources.
Next Steps
She's not thinking of a new start up yet ("my head and my heart are still so much at Robeez") but "I've learned so much that its almost a shame not to put it to work."
Advice To Mompreneurs
Ask yourself "what are you trying to achieve?"
"Just to replace the income takes a lot of work."