BabeofBusiness.com

When we pause to think about what it means to be a “small business”, we often have thoughts of gourmet goodies created from a kitchen table or software being crafted up from the confines of a “micro” environment (namely, a basement). In fact, some of the world’s most successful companies have roots as home-based businesses (think Famous Amos and Microsoft). Our featured start-up of the week, Bath-a-holic.com, is another prime example of starting small with the vision of one day being much, much bigger. The company’s founder, Kathleen Hogg, was kind enough to take time out of her busy schedule to tell us about her start-up experiences and plans for future growth.

Please tell us about your start-up Bath-a-holic. What makes it unique? And how does it fit into the marketplace?

Kathleen Hogg: I started Bath-a-holic after the birth of my second daughter. My epidural went wrong, and I began suffering from Chronic Neuropathic Pain Disorder. To alleviate pain I was taking a lot of baths and spending money on expensive bath products, which I did not feel did any real good other than having a pleasant aroma. Also, my daughters had reactions to a lot of the products that were deemed “gentle”. So, I decided to make my own bath bomb and came up with the “Cupcake”. I thought it was a fun idea and the product line just took a natural evolution, where I had people asking me for different products and I started making them. I studied up on natural remedies, which is key to my product line. The products are unique, because they are made in small batches for quality control. They have been designed to meet the needs of my target market; those who wish to have high quality products, with little additives and that actually do what they say they are going to do. I wanted to reach people who have sensitive skin, yet don’t want to pay the high cost of some of the more elite brands.

What kind of products do you sell? Do you sell both on and offline?

Kathleen Hogg: I have an online store www.bath-a-holic.com, and I also sell at some shows, through pick-up at my home, via placement in stores/yoga centers and through “Boutique Nights”. These are events where people host two or three different vendors and sell during the evening. I also have an option called a “Pamper Party”, where I provide hand treatments and have an individual consultation with a client. This allows people to purchase products that are relevant to their body and needs. I sell products for Bath, Body, Hair, Feet, Scalp and we have specialty products as well such as our Sickie Poo Pain Rub - a deep heat pain rub without the sticky residue and overwhelming aroma of other well-known brands. My pain specialist has been trying it out on some of his patients with great success. There is Bug “Grr” Off, a natural insect repellent, and Super Soothing All Purpose Salve, which can be used as a stretch mark cream, diaper cream, burn salve and for other various skin related conditions. Our Soothing Sauce is great for raw eczema patches on the scalp or skin, while also making an ideal after shave and hair mask. There is Germ B Gone, a natural and gentle anti-bacterial soap. The product lines are available for babies, children and adults.

What has been the most challenging aspect of launching this business?

Kathleen Hogg: The most challenging aspect of launching this business is getting people to try my products. Many people are committed to their brands, so it is difficult for them to switch. People are also hesitant to test out new products on their children. One great thing is that once people have tried my products, they tend to come back for more. I have several children with sensitive skin, who are now exclusively using Bath-a-holic products. It has also been difficult balancing family, work and my medical condition. There are times when the pain has made it a little tough to get things done, but it is a continuous process. Another challenge is proper wholesale pricing. I want to make sure that the prices are such that many people can afford them, so markup with retailers is an issue. I wanted to make sure that my Web site prices were the same as the stores. Pricing from that perspective has been difficult as my ingredients are expensive and the shelf life is an issue due to the fact that there are very little preservatives in some of the products and natural ones in others. So, quality control is a concern for me. However, I do wish to have my product more accessible to the public.

Did you write a business plan? How did you fund the launch of your business? Are you currently seeking investment?

Kathleen Hogg: I did write a business plan and it is modified every so often to change with how I see the product line and business model changing. I have funded the business entirely myself and have received no outside funding or investment. I currently have another business that has helped to finance the development of Bath-a-holic. Debt was not one of the things I wanted to take on. I also have reservations about investors, as I wish to have control over the business.

Is this your first start-up venture?

Kathleen Hogg: No, this is not my first start up. I currently have a business consulting company that I began upon the birth of my first daughter. I was lucky enough to have her just three days into 2001, which allowed me to take a year of maternity leave instead of six months. I knew that I did not want anyone else to raise her, and my previous job required quite a bit of travel. So this seemed to be the best course of action. Having the bath business as well is wonderful as the girls have input in the product names, packaging and development. I mean what little girl doesn’t want to help with bubble bath, sudsy soaps and glitter goop! Having my consulting business certainly helped me have a bit of an edge in developing Bath-a-holic.

What advice can you give others looking to start their own businesses?

Kathleen Hogg: I would advise that you choose something that you really love. Make a list of your favorite things to do and think about what is missing in the marketplace. Come up with ideas that fill some of these voids. Make sure that you do a business plan first, get your name set and research your competition. Don’t discount someone because they have an ugly Web site or appear to be the only company competing in your niche. Go slowly - don’t make promises that you are unable to keep. Talk to other business people and really listen to what they’re saying. Even if they are not in the industry that you are in, you can learn loads from other people. Don’t take criticism personally; rather use it to improve your product, idea or service. Use the criticism to your advantage. Continually analyze how your business is doing, by conducting research through focus groups or questionnaires. Make sure you have a lawyer to assist you in the different aspects of your business. For example, partner with someone knowledgeable about government regulations in your industry, whether or not to incorporate and specific contracts and disclaimers, as these are materials that you will need. I would also do a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis on yourself and your business idea. Knowing your weaknesses is just as important as knowing your strengths. Finally, stay positive. It is in an uphill climb starting a business, and there are bound to be nay sayers and many challenges.

If you had to start all over again, what are some things you would do differently?

Kathleen Hogg: I would probably wait a bit longer for my product launch and work on creating my corporate identity a little more. Loving what I was doing, I found it very difficult to stop creating new products.

Great advice, Kathleen!

Tags: bath bombs, Bath-a-holic, chronic pain, Cupcakes, Famous Amous, home based, Kathleen Hogg, Microsoft, start-up