She’s Seeking Dollars to Diffuse Her Line of Scents
When 30-year-old Liz Von Schlegell encounters aromatherapy products in stores, she doesn’t revel in their heady scents. She carefully studies the bottles and ointments, evaluating their packaging, pricing and formulas.
With a twinge of envy, the England-born nanny wonders how their creators got the products onto merchants’ shelves. That’s because, for the last two years, Von Schlegell has been trying to launch her own aromatherapy line, Maia (named after a nymph in Greek mythology).
It’s been tough going. Von Schlegell is holding down three jobs--as a daytime nanny, evening baby-sitter and weekend store clerk--to pay bills and finance her nascent business. Because she hasn’t yet built a credit history in the U.S., she also doesn’t know how she can raise enough cash to get Maia off the ground. Despite these challenges, though, Von Schlegell says she won’t give up her dream.
“It’s my priority, this business,” Von Schlegell said. “I’m trying to create something that isn’t already on the market, and make it mainstream. I want to help people learn about aromatherapy’s healing powers.”
Seeking a “scentsible” career plan so she can make the transition from nanny to full-time entrepreneur, Von Schlegell consulted Long Island, N.Y.-based career counselor Barbara Frankel. Before the conference, Von Schlegell sent Frankel samples of her Maia line.
Together, the two strategized about how Von Schlegell might make Maia a full-time, profitable reality. First, Frankel took a detailed history of Von Schlegell’s business background, financial status and entrepreneurial experience. Then the counselor had Von Schlegell describe her daily schedule. Last, the counselor asked Von Schlegell to verbalize her long-term dreams for Maia.
Von Schlegell shyly admitted that, at first, she’d fantasized that Maia would end up “in every mall” like Anita Roddick’s ubiquitous Body Shop brand, which can be found in 1,500 outlets in 47 countries. But eventually, Von Schlegell says, she grew more pragmatic. Limited distribution “in stores like Barneys and in mail order and on the Internet” would be enough for the beginning entrepreneur.
So far, Von Schlegell has financed all aspects of her business. “But there’s hundreds and hundreds of dollars more that I’ll need to spend, such as on trademarks and product liability insurance, and I have to figure how to come up with the money,” she said.
Von Schlegell estimates she needs at least $10,000 to $15,000 to fully launch her product line. But aromatherapy company owners say those figures may be too conservative, if Von Schlegell hopes to sell her products through a variety of distribution channels.
It became obvious to both women that Von Schlegell not only needs to revamp her career, but also to set far more specific goals for Maia and act on them regularly. Here are the suggestions that Frankel offered Von Schlegell:
* Structure your day for success. Von Schlegell, who doesn’t have children, laughs when she recounts why she chose to become a nanny: She thought child-minding would allow her more time for her entrepreneurial endeavors.
As most new mothers could have warned Von Schlegell, this wouldn’t be the case. The demanding job has ended up requiring more hours, physical labor and concentration than the marketing and retail positions Von Schlegell held in Britain. Von Schlegell finds herself carving out only 30 to 60 minutes a day, if that, for her business. Although she loves her wards--an 11-month-old and two toddlers--and wouldn’t trade working with them for a 9-to-5 job, she hopes she might eventually be able to cut back the hours to devote more effort to guiding Maia toward becoming a commercially viable company.
Von Schlegell admitted to Frankel that she doesn’t typically plan out her day’s work. This is critical, Frankel told her. “You need to break your goals into steps and implement the steps every day. That’s how you’ll build Maia, and it’ll make you feel productive, like you’re accomplishing things. Picture yourself as the CEO of your company, so you can start living your dream.”
Frankel also suggested that Von Schlegell join--or even form--a business support group for new entrepreneurs. “Surround yourself with people with whom you can talk about pursuing your dreams and also with ‘doers’--action-oriented people who’ll inspire you,” she said.
* Build your brand. A cornucopia of aromatherapy products compete for consumers’ attention in shops, online and in mail-order catalogs. How will Maia distinguish itself? Von Schlegell proudly describes her line as a “fresh, organic high-end brand that supports the body’s healing ability,” but many other aromatherapy companies make similar claims.
“A lot of people are desperately seeking a niche in an overpopulated market,” said Andrea Stotsky, national training director of Paris-based Decleor, a 26-year-old aromatherapy concern that sells millions of dollars’ worth of products annually in the U.S.
For Maia to stand out, Von Schlegell needs to create some unique selling point and, if possible, to develop proprietary patents, trademarks and copyrights.
Allison Lee Strathearn, founder of Arizona-based Body Garden (https://www.bodygarden.com), took this route when she introduced her “Breast Care Botanicals”--blends of essential oils that can be used during breast self-exams.
Aroma Vera (https://www.aromavera.com), a large Culver City company that markets 120 essential oils, has positioned itself in the marketplace as the “the most comprehensive aromatherapy product line in the United States.” And newcomer Ingredients.com (https://www.ingredients.com), which was launched last month by two former IVillage executives, bills itself as one of the first Internet-based private-label e-tailing companies.
Von Schlegell needs to study her competitors’ products, marketing, pricing, distribution channels and customer service, among other things, to devise strategies for positioning her product line and making it attractive to consumers, Frankel says.
Von Schlegell, who will soon complete an aromatherapy diploma program, has put together a line of nine products, including face oils, body massage oils, shampoos, body lotions and foot and hand creams. For now, she blends and packages her products by hand at home.
She may eventually market aromatic candles as well. She’s selling the products by word-of-mouth referrals, in a yoga catalog and at Firefly, the Venice boutique where she works weekends. But if she hopes to see Maia products at upscale retailers such as Barneys, she’ll need to research their shoppers’ demographics and buying habits, Frankel said.
* Perfect your product. Frankel complimented Von Schlegell on Maia’s well-designed products and packaging. But she alerted Von Schlegell to problems she’d discovered while inspecting the samples. During shipping, a cream had leaked, perhaps because it required a stronger pump. A label’s adhesive was weak. And there was a typographical error on a second prototype label.
Frankel urged Von Schlegell to perfect her line before she attempts either to mass-market it or present it to potential investors. She advised Von Schlegell to have at least three people scrutinize the products’ labeling and packaging before introducing new items to the marketplace.
* Create an online presence. Online sales of aromatherapy products are booming. Just ask Dan and Jean Birkle, founders of Arkansas-based One Planet (https://www.oneplanet natural.com), who, after an initial $5,000 investment, say they are grossing $4,000 monthly through their site, with a 70% profit. Or talk to former Dallas Cowboys cheerleader D’Laine Gutmann, owner of Aromystique (https://www.aromystique.com), who says the company’s online sales are totaling $125,000 to $150,000 a year. Large companies, such as Coty’s Healing Garden (https://www.healinggarden.com), the U.S.’ leading seller of aromatherapy products and the reputed initiator of the mass-market aromatherapy trend, can rack up millions in sales because of brand-name recognition.
Von Schlegell will need to erect a secure e-commerce Web site, so customers can safely order Maia products through the Web. Such sites typically cost around $10,000 to create, although more intricate destinations such as Ingredients.com can require outlays of $100,000 or more to build. Deals can be had in some cases. Strathearn of Body Garden was able to barter services with a Web designer, so her site could be built for no additional cost. And Dan Birkle undertook the designing of One Planet on his own, because he felt confident of his software skills.
Once Von Schlegell’s site is launched, she should make certain it is registered with search engines. High placement on engine listings can translate into markedly increased sales, says Craig Charyak, president of New Jersey-based Aestares (https://www.aromacandles.com), who estimates his company is pulling in about $100,000 annually in online revenue.
* Formulate a business plan. Though Von Schlegell has researched business-plan drafting and reviewed templates, she admits she feels somewhat overwhelmed by the project. Frankel encouraged Schlegell to read such manuals as “The Complete Book of Business Plans” by Joseph Covello and Brian Hazelgren (Sourcebooks, 1994) for inspiration, and, if possible, to review the plans of other successful aromatherapy concerns. A well-drafted, smartly focused business plan (typically two to eight pages long) may be the difference between securing funds and walking away empty-handed, says Mark Glennon, president of the Illinois Venture Capital Conference.
* Investigate funding sources. Before trolling for cash for Maia, Von Schlegell should build a credit history, Frankel says. She can do so by regularly using her credit cards, then paying off the amount charged each month.
Some aromatherapy company owners, such as Dianne Pierce of Inner Sanctuary of Healing (https://www.innersanctuary.com), finance their companies wholly out-of-pocket. Pierce, who worked for Motorola for 27 years, went so far as to risk her entire $85,000 retirement package in her budding aromatherapy company. Strathearn estimates that she’s poured about $50,000 in personal funds into Body Garden in the last three years.
Before Von Schlegell calls upon investors for an infusion of capital, she must realistically appraise Maia’s financial needs, as well as its revenue potential. If she starts small, she may be able to ramp up with an initial $10,000 outlay, pooled from personal funds, loans and investments from family and friends.
But if she hopes to create a large-scale firm with an elaborate online presence, she’ll need far more capital and a significantly more sophisticated plan. Katherine Legatos and Amy Ryberg, founders of Ingredients.com, scored a whopping $500,000 from family and friends and $4.5 million from venture capitalists by convincing potential investors that their technology backgrounds, management team, aromatherapy products and e-tailing destination were ingredients for success.
Should Von Schlegell desire to follow in their footsteps, she’ll need to assemble a team of seasoned business professionals, set up a bare-bones Web site, sign up customers and perhaps form strategic alliances with noteworthy companies, says attorney Joe Bartlett, senior partner at Morrison & Foerster’s New York office, and author of “Equity Finance” (Aspen Books, 1995).
“Angel” investors might then come to her aid too. They’re defined by the Securities and Exchange Commission as individuals with a net worth of $1 million or more, or who earn in excess of $200,000 a year, who are looking for lucrative start-ups in which to invest. Each year, about 250,000 angels commit nearly $20 billion to about 30,000 private companies, according to the Small Business Administration.
Von Schlegell is just beginning on her road to full-time entrepreneurship. But she knows her destination--it’s where she’ll enjoy the sweet smell of success.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Ready for a Change
Name: Liz Von Schiegell
Occupation: Nanny
Desired occupation: Aromatherapy company owner
Quote: “Sometimes I’m overwhelmed when I think of all that lies ahead of me.”
Counselor’s Recommendations
Create a business plan, join an entrepreneurial support group, investigate capital-raising options, devote more time to launching company.
Meet the Coach
Barbara Frankel has been a career and executive coach for 20 years. Based in Long Island, N.Y., she has trained more than 100 career counselors, and was awarded “fellow status,” the highest level of competency, by the National Institute of Career Management Professionals.
