Australian Parachute:
Interview With A Home-Based Business Owner
byYank Elliott, MBA & IAHBE Staff Writer
Emily Hay’s Ecosilk Bags is a very good example of a true home based business. About five years ago she started at home and the business is still run from home although she now has three employees. This entrepreneur did what many knowledgeable startups do, she began to run Ecosilk alongside another business.
Emily was fortunate to have experience acquired while running several other businesses. She utilised her training and experience in designing and patternmaking to make prototypes of her new products. Then she used the resources of the Home-Based Business Action Program to develop her plan to reach 1,000 shops throughout Australia. This illustrates the importance for an entrepreneur to seek and utilise all available training from every source.
Lack of sufficient financial resources is a major reason small businesses fail. Emily has managed this with cash flow from sales and careful use of her bank connections and credit cards.
Ecosilk Bags is the result of Ms. Hay’s care about our environment and the problems plastic bags create. The idea of an attractive reusable substitute is a passion with her, and it is has resulted in a niche market she is filling.
After she defined her idea, she immediately did what many others fail to do: SHE TOOK ACTION! Using her skill and training in patternmaking and design, she used fabric from old projects and produced her first bags. She liked them, and now her business is off and running.
Marketing
is done with samples and cover letters, the Internet, and word of mouth. These
bags are increasing in popularity, and Emily says word-of-mouth advertising
is really big for her; a big plus is it’s free. One of her most time-consuming
duties is developing new market strategies.
She faces the same constraints every business has: there are not enough funds
to make every new scheme successful, and the entrepreneur has limited time to
do everything necessary for daily operations. How these problems are managed
determines success or failure. In her own words, here is what Emily Hay has
to say about Ecosilk Bags:
How
old is your business?
Four and a half years old.
What
was your primary reason for going into business for yourself?
I have been running all sorts of businesses since I was 23, and I really hate
plastic bags and saw a need for a really good viable alternative to plastic
shopping bags.
Where or how did you get the idea for this business?
I got the idea in 1999, when, as [I said ]above, I saw a need, and I had some
leftover fabric from a previous order from years ago. I also have been interested
in actually copying the basic pattern of a plastic bag and making it out of
fabric, as I am a patternmaker/designer. Accordingly I made some trial bags
and started using them, and found the design to work absolutely perfectly.
What
kind of organization is it: sole proprietor, partnership, corporation, etc.?
Sole proprietor.
Do
you operate your business full time or part time?
Full time and more.
How
many employees did you have when you started?
I started with a business partner, so it was just my partner and myself.
How
many employees do you have now?
Three.
What
activities require most of your time?
Dispatching orders and dreaming up new marketing strategies which I then put
into action.
In
what city or community is your business located?
I live in northern NSW, Australia. The nearest city would be Lismore, 55 kms
away.
Where
is your business located: home or some other location?
At home.
Where
was your business located when you started it: home or some other location?
At home.
What
kind of business are you in?
Producing reusable and recyclable shopping bags designed specifically to replace
single use plastic shopping bags.
What
is the name of your business?
Ecosilk Bags.
Has
your business changed since you started it: different line of business, new
product line, different services?
Not really, I have just added a few new products and finely tuned the original
bag.
Have
you had other businesses in the past?
Yes, many.
Do
you have other businesses now?
No, I don't have time.
What
are your two biggest problems?
Lack of funds to get new schemes off the ground, not enough hours in the day!
How
many hours did you work each day or week during startup?
About 20, as I was running another business at the time.
How
many hours do you work each day or week now?
About 45 hours a week.
What
is your main source of financing for your business?
Cash flow, and banks/credit cards.
Do
you plan eventually to sell your business, will it to your heirs or partners,
or might you just walk away and close the business when you decide to quit?
I have no idea.
Has
there ever been a time when you did not enjoy working for yourself?
No.
What
is the main way you market your products or services?
I send out samples with a letter of introduction, information brochure, order
form etc. Word of mouth is also huge, and the most genuine form of advertising,
plus, it's FREE.
What
activities are performed by others outside your organization like accounting,
production, advertising, etc.?
I have all my bags made offshore in Asia, so there is no production of stock
here in Australia, unfortunately. I do everything else.
Do
you have any advice for people desiring to start their own business?
Yes. Find something that you are deeply passionate about, and then decide whether
it is viable to make a business happen, and then do whatever it takes and don't
give up.
Who
has helped you most in your business: government, financial consultants, suppliers,
or others?
Family, local businesses, my local credit union.
What
are the primary sources of information for your business operation: newspaper,
radio, TV, Internet, magazines?
Internet, visual (shopping), and word of mouth.
Final thoughts:
Plastic bags have got to go, and it is only a matter of time before people realise this on a global level. Environmental responsibility is the way of the future and the only way to go if we are to survive as a species, because at present we are globally killing the planet and this MUST change. I want to help play a part in resuscitating the planet, and my role is to provide alternatives to plastic bags. If everyone worldwide does something, things will really start to improve. (That's enough raving for now).
DONT USE PLASTIC BAGS, USE SOMETHING ELSE!!!
RESOURCES:
ECOSILK
BAGS
The environmentally friendly fashion alternative to plastic shopping bags
http://www.ecosilkbags.com.au/
NSW
Department of State and Regional Development
Home-Based Business Action Program
Yank is a home-based entrepreneur and freelance business writer living in Hurricane Alley, North Carolina, USA. His Website is www.furriwhalesworld.com. Contact Yank at globalbiz@furriwhalesworld.com.