Stella, Mike, and a third expert explain how small brands break into high-end retailers like Neiman Marcus: understand the store's identity, prove demand through trunk shows and consignment, and present yourself as a boutique operation with a polished website. They unanimously advocate bootstrapping over early funding, arguing that limited capital forces discipline and builds a stronger business.
It's time now to answer some of your business questions. Stella and Mike are here with us once again. The first question is about high end retailers.
I want to put my backs in high end retailers like Neiman Marcus. What would be my strategy as a small business and home business to go that far?
It's a good question. We're talking about getting, getting your brand in a bigger brand store. So how do you do it?
You have to know what they represent as an entity, as an identity. So when you bring your purse line in bag line, you have to show that it complements their identity. And then you got a hustle. You can do trunk shows. Trunk shows is where you bring your products in and you're selling almost on consignment in their stores to prove it can work in their stores. And then you can get the big buy right.
You really want to be in line with the customers that they're attracting. And you want to make sure that your brand as is on your website really reflects their demographic and their psychographic. You want to make sure that the pricing on your website makes sense for the retailer that you're about to enter. Because if they're going to be selling their bags in their stores to does your price point match up with theirs, is it lower? Are they going to be competing with you? So you want to make sure that you're prepared to let them have the spotlight in terms of selling your product.
Does the idea that it's a home business is that I would describe it.
As a home business. I would describe it as a boutique as, you know, one of a kind, handmade. I wouldn't say home.
I have a sharp looking website though.
Right.
Good looking website should represent you.
Okay, great. Let's move on to the next question. It's about getting investors for a young entrepreneur. How, at what point do you decide whether you should bootstrap? Seek out a venture capitalist or an angel investor. Bootstrap. That's my answer. What about you guys?
Oh, I'm, I'm all about the bootstrapping. But I would first, many people think they need money, they need investors. But then ask the question like how much do you need? What do you need it for? How long do you need until you actually need it? So really try to stretch out the amount of time that you're producing your own product. You're creating it yourself. That builds equity in your company and that impresses investors once you get to the point that you really need them.
Yeah, I once, I just bootstrap. Freaking bootstrap. Because it forces discipline. Yes, but it forces discipline. It means you have to form a good, strong, solid business on the few pennies you have. That's a business that ultimately investors will want.
Right?
So bootstrap, bootstrap, bootstrap. And let them come to you later down the road.
Yeah.
Constraints builds creativity. You will be surprised at the solutions you think of when you don't have the money.
That is so true. We were just talking about this. I've said it on the show before, but I worked at a. In the late 90s, it was an Internet company, venture funded. And everywhere around me, people were spending so much money on wasteful stuff because we all had it, you know, and then the bubble crash, and then suddenly you get really creative marketing campaigns that cost almost nothing. All right, great. Thank you so much, you guys, for all this advice. It was fantastic, as always. And if any of you out there have a question for our experts, all you have to do is go to our website. The address is openforum.com yourbusiness there just hit the Ask the show link to submit a question for our panel. Again, the website is open forum.com your business. Or if you'd rather, you can email us your questions and your comments. The address is your business@msnbc.com.
