Navigating The Pitfalls

Sandy Linczer
Staff writer
Austin Business Journal
2007-10-22


'Momtrepreneur' navigates the pitfalls of starting a b'usiness. Entrepreneurship is in Tasha Collier's blood.

At 19, she single-handedly opened a hair salon and built a loyal clientele from the ground up. Years later, as a wife and mother of two children, Collier has traded hair appointments for diaper duty -- but she's still capitalizing on her ideas.

Her latest endeavor was born out of a desperation to find a convenient way to dispose of dirty diapers without leaving behind an offensive odor. Thus, this momtrepreneur invented Diaper Baggies -- opaque, odor-locking, plastic bags that hold dirty diapers discreetly.

"It's one thing to throw them out at Disneyland, but what if you're at someone's place? People don't want to smell that," says Dianna Kopolox, a mother and Diaper Baggies consumer.

Collier has taken initial steps to protect her design by filing for a provisional patent, which will protect her prototype for one year. Her next step will be to finalize the patent, which will take a lawyer and about $10,000.

Michael Davis of the Davis Law Firm urges inventors and entrepreneurs to identify early on the new features of a product that give it a competitive edge.

"These would be the target of the patent application," he says.

Next, Collier delved into market research to validate the need for her product and business.

For $800, she hired Washington State University to conduct a market study about baby products. The study took about seven weeks and its results provided the backbone to her marketing plan.

In the study, the numbers reflected an increased demand for high-end baby products. Another study from Mintel International showed sales of high-end baby products grew an estimated 20 percent from 2005 -- five times faster than the total $424 billion infant and preschool goods industry. They were promising numbers for Collier so she decided to concentrate on high-end retailers.

Fellow momtrepeneur Heather Nolte, who started a successful clothing line for babies www.glamajama.com, emphasizes the importance of research.

"My biggest piece of advice for moms wanting to start their own business is to do your homework," says Nolte. "Sit down and write that business plan, do the market research, have a marketing plan, create your budget and set some realistic goals for you to accomplish each month, quarter and year."

Instead of mass marketing, Collier began trolling specialty infant boutiques, upscale department stores, airlines and hotels. She currently has deals with nine boutiques. In August, Frontier Airlines began a pilot program of offering Diaper Baggie samples to its travelers. Collier is still awaiting feedback on the trial run.

In addition to studies, Collier went straight to her end users -- parents. She spent months gaining consumer insight into what would sell.

"I spent hours on the Internet reading hundreds of blogs -- that's where the mothers are talking," Collier says.

Collier says the most difficult part of starting her business was finding a manufacturer that could incorporate all parts of her design within her budget. Collier was adamant that her product be made from recycled plastic, have an airtight zipper seal, and still look fashionable. She spoke with scores of manufacturers, learned their lingo and asked a lot of questions until she found a compatible partner in China.

According to Collier, the difference between using a U.S. manufacturer and a foreign partner was about $2,400 for a batch of Diaper Baggies. However, after factoring in shipping costs, net savings were closer to $1,000. Of the 200,000 baggies initially produced, more than 80 percent of the product has been given away or sold.

Revenue this year has been insignificant, but Collier conservatively anticipates 2008 sales of $6,000-$8,000 a month. She has invested about $25,000 in the venture so far.

In 2006, Collier began participating in the American Baby Fair Trade Show, which she says has put her within reach of an estimated 10,000 consumers -- that is 10,000 people to sample her product, 10,000 people to provide valuable, hands-on feedback and 10,000 potential repeat customers.

Lessons Learned

* Never underestimate simple ideas.

* Blogs are filled with consumer insight.

* Learn your contractors' lingo.

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Diaper Baggies

What it does: Produces and markets disposable diaper bags

Employees: Three full-time, three part-time

Initial investment: About $25,000

Revenue: About $84,000 projected for 2008

Web: www.diaperbaggies.com