I was raised by entrepreneurs. One of my family’s favorite pastimes was discussing business ideas around the dinner table. I have personally tried several business ventures. My most successful so far is a family business I started with my mother. My mother and I noticed a problem, and we created a product line called Pure Fresh Solutions to solve that problem. We then created a small business to sell the product.
Noticed a problem
My mother has been working in the nutrition industry for quite some time. She grew a large business where she developed nutrition products, then sold her stake in it to pursue other interests. When a relative came to her with a problem, my mother and I began to research ways to fix it.
The problem our relative had was with itchy arms. Her arms would itch so intensely, she would use a brush to scratch them, until they began to bleed. The pain was more bearable than the itching.
My mother and I found various answers to the problem on the Internet, and narrowed it down to Demodex mites. We decided to create a solution.
Researched the competition, and the market
We researched the problem in forums and blogs. We looked at the competition’s forecasts, and researched the popularity of their products. We wanted to find out how many people may benefit from our products, and how popular competitors were.
The market was fairly small. We wanted a business we could maintain ourselves, so a limited market worked for us. It was very important to weigh the possible popularity of a product with what we would be able to manage, and with what our goals were.
Developed a marketable product
My mother created the actual formulas for the products. Usually, she creates a formula, and then, she will have it tested in a lab. The packaging is done by an outside facility when the formula is ready.
Even if you have a great idea, it is usually impossible to do all the work yourself. It is important to call other facilities, introduce yourself to people, and ask for help. The easiest way to create a product is to outsource everything you do not know how to do. That requires building relationships with people who know how to do those things.
When it came to the name and label design, we worked to come up with a very basic design that represented our concept. We then asked an artistic family member to help us improve the design, and make it work for a label.
Again, all of those contacts are a great help. Some people are willing to help with little or no pay, if they know they may have a stake in the idea later. Others may be willing to help just because they like you, and you can set up a simple exchange. The exchange can include an exchange of ideas. It does not always have to include money or investors, especially if you are trying to create a very small-scale business.
Established a corporation
We chose to create a C corporation for several reasons. InvestorGuide.com lists some of the main benefits of a C corporation. The most important factor is that it allows for growth. Even if you never plan on growing your business, it’s nice to have that option, just in case. In our case, we realized it was possible that the product may take off and become really popular. The C corporation was the best option for growth.
A C corporation also gives the principal shareholders the most legal protection. No matter how safe your product is, there will always be the type of person who gets sick or has an accident, and decide to blame someone. That someone they blame could be your business. If the business remains fairly small (as ours has), this is much less of an issue. The problem is that it is always a possibility, and it’s better to be safe than sorry.