How Much Does It Cost to Start a Business?

Does it take money to make money? More and more moms are starting their own businesses. Some are pursuing a dream of building a big company, some want to take an invention to market, some want the flexibility of being their own boss, and some just want something to call their own. But, how much does it cost?

Mompact works with dozens of mom inventors. These women have ideas for solutions to make life easier or better. Although available resources have made it easier for independent business owners to manufacture products, develop brands, and reach consumers, creating a profitable business isn’t easy.  Filing patents can cost thousands of dollars and manufacturing is cheaper at high volume.  And, you’ll need to pay for help: design work, legal consulting, packaging, distribution and marketing are all areas where proven expertise matters.  Starting a business around an invention that is made by plastic mold will require tens of thousands of dollars to start.  I know a few women who have spent hundreds of thousands.

From the outside, it can look glamorous – your product on shelves, articles in magazines, and even appearances on Shark Tank.  I’ve spoken to over 100 mom inventors.  I know of only a dozen or so who are making a living with their business and who have earned back their initial investment.  It’s not that they did anything wrong, it’s that the current distribution system doesn’t support individual products.  Rarely do you invent something, have it manufactured, and then just call Target and have it put on shelves.  Moms tend to invent products they need — solutions for parenting.  But, the parenting aisles of stores are “owned” by a few brands.  Take a look sometime at the feeding and gear aisles at Target or Babies R Us.  You’ll see uniformity, dominance of a few brands.  The options are to develop a line or license your product to one of the brands on the shelves.  Both take time and money.

Elaine Tan Comeau, inventor of Easy Daysies, with her family on Dragon’s Den (Canadian version of Shark Tank).

The moms who manage to develop their products are passionate women who want to share their products with other moms.  Some are able to sell their products online and others do well in small boutiques.  The products that do well online are ones that have common search terms.  We search for “teething solutions” or “seat covers”, but what if you have a handy gadget no one has thought of before?  For example, do moms search for “a faucet extender” so their child can reach the water?  Small boutiques are a perfect for gift items, but inventory at these stores moves slowly.  If you need to sell 1000 items per month to make a living, that’s a lot of boutiques to work with.

About a year ago, several mom inventors met at the ABC Kids show in Louisville, KY.  We brainstormed about how to get their brilliant products out to consumers.  We realized traditional approaches weren’t working.  We knew that there were plenty of satisfied customers – some who expressed interested in helping the inventors by sharing their stories and promoting the products.  So, why not take this a step further?  Why not compensate moms for marketing and selling the products to other moms?

Mom-invented AqueDuck Faucet Extender.

Mompact did it.  We searched for the right products, surveyed consumers, and got to know the inventors to ensure viable businesses behind the products.  We developed a direct sales program and tested it briefly last Winter.  We learned a lot and discoverd moms wanted to support other moms.  Moms were seeking these useful mom inventions and didn’t know where to find them or buy them.  According to DSA,  74 percent of the American public having purchased goods or services through direct selling.

Now we’re ready to take these great solutions to moms across the US in a way that benefits both inventors and moms seeking an income.  We call it Flourish.  Like great direct sales companies including Thirty-One Gifts, Scentsy and Stella and Dot, we developed a generous compensation plan, marketing materials, and support systems to help moms succeed at their own business.

We’re looking for 25 Independent Consultants to help us launch the company and participate in selecting new products and ideas.  We’ll provide as much training as support as needed.  Our normal kit is $99 and contains over $200 in product and business supplies.  BUT, the initial 25 Consultants will receive much more.  In addition to the Flourish “Solutions” catalog, we will have a boutique line to sell including gorgeous items from ButiBag and Padalily.

If you have direct sales experience or want to be trained to be successful in direct sales, this is an incredible opportunity for you.  Our initial consultants will be defining the future of Flourish and building teams.  Initial commission is 25% (take at time of party) plus 5% bonus of all sales in 2012.  In addition, there will be contests and incentives and the ability to earn commissions on your entire downline.

If you’ve been thinking about starting a business or joining a direct sales company, this is the perfect time.  Email us for more information or complete the brief application here.