Why You Should Always Sweat The Details For Your Startup To Succeed
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- Players: Michelle Dateling and Anastasia Dobson-du Toit
- Company: AnaStellar Brands
- EST: 2016
- About: AnaStellar Brands is a female-owned South African company, with a focus on the development, marketing and sale of innovative brands in the FMCG, cosmetics and pharmaceutical sectors. All of the company’s brands are manufactured and packaged within South Africa.
- Visit: www.anastellar.co.za
Anastasia Dobson-Du Toit, a qualified pharmacist with a BCom degree and Michelle Dateling, an optometrist, met while both were pursuing an MBA at Wits University in 2010. Anastasia had spent years working in her family’s pharmaceutical company, which was eventually sold to a multinational. Michelle, meanwhile, was working as an optometrist and also has a stake in an optometry business. A few years after successfully completing their MBA degrees, both were looking to start a business.
“Initially, there were six of us — six ladies who had been in the MBA programme together. We all felt that there was no gain in simply getting an MBA. We needed to actually do something with it, so we decided to start a business together,” says Michelle.
As often happens, though, several members of the group withdrew for one reason or another, until eventually, only Anastasia and Michelle were left. Having exited the family business in 2014, Anastasia was ready for a new challenge and Michelle was also keen to venture deeper into the realm of entrepreneurship.
The industry they settled on was a challenging one, but also one that Anastasia was intimately familiar with: Pharmaceuticals. They launched AnaStellar Brands in 2016, a company that produces consumer health products that target the body and its functions in a holistic way.
“We make use of a mixology of targeted ingredients in a safe, cost-effective and convenient way, ensuring continued compliance and thus effective results. Our products focus on the nutritional requirements of women throughout the various stages of womanhood, including prenatal supplementation,” says Anastasia.
Of course, making inroads into an industry that is incredibly competitive and heavily regulated isn’t easy, yet the company has enjoyed impressive growth over the last 18 months. How did the founders manage to establish and grow their start-up so quickly?
Here are their tips for taking on entrenched competitors.
1. Focus on what you do best
“We focus on the development, marketing and sale of products.” says Anastasia. “We don’t manufacture anything ourselves and we don’t handle things like warehousing and distribution. When we launched the company, we knew that we wanted it to be a South African businesses — that the money should stay in the country and stimulate the economy here.
“However, we also realised that we didn’t have to manufacture ourselves in order to accomplish this. There are plenty of South African businesses with the necessary capacity, just hoping for the business. So, we focus on the development and branding, which is where our strengths lie and contract the rest out. Trying to manufacture on a large scale when you are a small start-up is just too costly.”
2. Don’t give your company away
“Bootstrapping a business isn’t easy, so saying no to funding can be hard. However, you have to be very careful when it comes to taking outside funding. Although people were offering us money for something that didn’t truly exist yet, we decided to rather fund the business ourselves. Equity is cheap when a start-up is young, and a founder can end up regretting giving a big chunk of the business away. Also, you can quickly find yourself in a situation where you are no longer your own boss. If at all possible, fund the business yourself,” says Anastasia.
3. Know your market and customer
“Although we only launched late in 2016, we had spent a lot of time researching and preparing before this. We analysed the market carefully and really looked at our competitors. We tried their products and took photos of shelves in stores. We knew exactly what the market looked like, and we knew how we wanted to position ourselves by the time we officially started doing business,” says Michelle.
4. Build intellectual property
At the end of the day, all you really have is your brand and your IP, so you need to focus on those when launching your business. You need to know exactly what you want your brand to be. You need to sweat the details. Logos, packaging and marketing materials are important. You need to stand out and you need to be able to compete with large multinationals. We spent time and money on good packaging, for instance, even creating boxes that are printed on the inside. This adds to cost, but helps build the brand,” says Michelle.
5.Have a clear marketing strategy
“A start-up doesn’t have the marketing budget of a large business, so you need to be strategic and targeted in your marketing. We decided to recruit a sales force to target the doctors who would prescribe our products, instead of spending money on traditional marketing campaigns. This was a strategy that really worked for us. You need to look at what the most cost-effective marketing solution is for your business. A young business needs to see a great ROI when it comes to marketing, otherwise it isn’t worth it,” says Michelle.
6. Protect your IP
“A good lawyer can be expensive, but it is absolutely worth the investment. You need a lawyer to look at any contracts you sign, and you need someone who can help you to protect your IP. Too many start-ups launch without worrying about IP. By the time they come round to it, it’s often too late. Get a good IP lawyer and protect your brand from day one,” says Anastasia.
7. Hire carefully
“As a start-up, we hire a lot of young and inexperienced sales people who we train and help grow,” says Anastasia.
“The problem with this, however, is that you can spend a lot of time and money training someone, and then quickly lose them to a bigger company once they have gained some experience. Make sure that you aren’t simply training someone for the competition. Hire employees who are committed for the long term. It’s even worth including a clause in employee contracts that state that employees need to repay the cost of training if they leave the business within a certain period.”