The Accidental Entrepreneur

Joan is the consummate "accidental entrepreneur." She started her business in 1996 after attending a garden walk where she saw some herbal soap. A true gardener at heart, Joan was excited to see that soap could be made with herbs, especially since she had made herbal vinegars the year before for Christmas presents. So she decided to make herbal soap for Christmas gifts that year. Says Joan, "I started studying all the books I could get my hands on. I scoured the Internet for recipes and information. After I made it, everyone loved it and wanted more. I spent six months perfecting my formula and ultimately, launched my own line. Once I had achieved that goal, I called on a few local stores to see if they might be interesting in carrying my soap. Once I made my first sale, Joan's Gardens was a business."

Joan's Gardens was such an "accident" that it did not even have a formal name when Joan made her first sales. It wasn't until she called the state tax office to renew her sales tax information that she came up with a formal name, and only then, because it was a state requirement! Joan says that there is a great deal of good will and brand recognition built into the name now. Still, she says, "I am sure that I would have chosen a different name if I knew how much our business was going to grow!"

Joan's Gardens manufactures a variety of toiletries products by hand from scratch, including cold process soaps, bath salts and potpourri. Joan also makes body lotions, but only for her personal use. The business was started with no real start up capital. Instead, Joan used the money she had in the bank at the time to order supplies. She and her husband recently attended a business class where they were advised to obtain a line of credit to use for working capital. They decided to do so, but have not had to use it yet.

How Joan's Gardens Keeps It All Together

Joan's Gardens has 3 full time employees and 5 part timers. Susan is the production manager. Susan and Carol pull orders and package all the products. Renee, who keeps order in the shop, also pours all of the glycerin soap and helps Joan prepare the cold process soap ingredients for mixing. She also keeps everything in order in the shop. Sherry packs orders in the evenings, while Mel makes gel candles. Michelle makes and packages the bath salts, and Karen performs bookkeeping functions and helps print product labels. Joan's Gardens also relies on a certified public accountant and an attorney to help keep things running smoothly.

Jon, Joan's husband, keeps everything working smoothly and cuts all the soap (which have beautifully beveled edges, I might add!) Jon also picks up supplies and makes local deliveries. Joan is the cold process soapmaker and the chief research and design specialist, always creating new products (one of her favorite things to do), attending trade shows, searching for new suppliers and maintaining smooth production flow. Sometimes, Joan's 87-year old mother chips in the help tie lovely silk ribbons around Joan's Gardens' beautifully labeled bars of soap.

According to Joan, their best selling products are their glycerin soaps. "I think it's because they are so bright and colorful and smell so good," says Joan. "I also think the way we package them, in tightly pulled shrink wrap, has a lot to do with their appeal."

Says Joan, "Over the next 5 years, we plan to double the business. We are contemplating exhibiting at the Chicago gift show next January, but have not yet made a final decision. When we started this business, we really decided to 'go for it,' so that, as we approached retirement, we would have the option of selling the business at a substantial profit, thus helping to secure our financial future."

Despite the fact that Joan loves having her own business, she quickly notes that there are some daunting challenges. Among them, maintaining a sufficient profit margin. Says Joan, "Our products are so labor intensive because of our packaging that our wage expense is very high. I buy everything I can in bulk to save our cost of goods, but it is nevertheless very difficult to maintain an acceptable profit margin. I have learned that you have to spend money to make money in business, and I am confident that in a short time, we will enjoy the increased profits we are working so hard for now.

Joan's  Advice To New Handmade Beauty Businesses

Joan says that one of the first decisions that has to be made is where you are going to be a retail and/or a wholesale operation. Also, says Joan, "Whether you want to be large or small, if you want to grow at all, you will have to deal with the question whether you will hire employees. Everything  depends on that decision because it will determine how you buy things, how you market your products, etc. The more assistance you have, the more flexibility you have to grow the business the way you want to." Joan should know ... she's expecting Joan's Gardens to gross $125,000 plus this year!

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