QA Flashcards

1
Q

How did you two meet? P

A

I was living in Mumbai and teaching at the American School. One summer holiday I decided it was time to overcome my fear of the ocean by signing up for a scuba diving course in Thailand - and Med was my instructor! Not only did I learn to dive, but I’m now a certified rescue diver, which I’m really proud of, and a really amazing husband and business partner.

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2
Q

How do you find it being a husband and wife team? P

A

We have really complimentary skill sets, which means for the most part, everything runs really well! There have been challenges…when we first met, we were used to having the income and freedom to travel. When launched Bloomtown we put all our time and energy into the business. But it’s started to pay off - in January we were able to take our first holiday in 2 years!

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3
Q

So, how did you get started doing this - do you have a background in beauty / formulating? P / M

A

Preya: No, but I come from a family business background, and business is in my blood. I was a teacher for 9 years in prestigious international schools. I’ve always been passionate about creating my own scent blends, and I started making natural soaps while living in Bali.I spent years experimenting and tweaking my formulations, giving them to family and colleagues and the feedback I got was, why doesn’t this exist? Please do this! They weren’t just being nice, they would fight over my products because they said they simply couldn’t have eco-friendly products that felt so good on their skin.

Med: So many people have said our soap was the only product that helped their eczema and psoriarias. That feedback and the passionate responses we got was what filled us with the confidence to launch Bloomtown.

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4
Q

Why Bloomtown - sounds like a florist! P

A

We wanted a name that was fun and memorable - and that evokes flowers and plants, which are the inspiration behind our products and scent range

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5
Q

Are you still selling on moonpig? Why haven’t they reordered? M

A

Moonpig ordered 950 sets and they are still selling.

Why not more?

More premium than other offerings…

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6
Q

What is your production capacity? P

A

In the last 12 months, we produced approx 20000 units a month, we feel we could now double it.

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7
Q

So who does what in the business? P

A

I take care of all the formulations, design, customer service and online operations, whereas Medwin does all on the on the ground work - packing orders, organising stock and managing our staff, we each have clearly different but complementary roles.

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8
Q

What about sustainable palm oil? P

A

We’re all for sustainable palm oil, but many experts believe that as long as demand for palm oil keeps increasing, there can be no truly sustainable palm oil and virgin forest will continue to be cleared, so we just want help lower overall demand by offering palm oil-free alternatives. We believe when the buying stops, the deforestation will stop. We want to offer consumers a clear choice..

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9
Q

How big is the market for these products? How many vegans are there in the UK? Too niche? P

A

The beauty global beauty market is worth 300 billion pounds

UK beauty market is worth 17 billion projected to grow by 20% in the next ten years

thank There are 3.5 million vegans in the UK alone, and it’s one of the fastest growing lifestyle movements, but we’ve also found that vegan and cruelty-free cosmetics appealj to a many people who simply care about the provenance of ingredients, which is often very difficult in cosmetics. Everyone wants to be more eco-friendly, everyone wants to shop more sustainably, we’re making it easier to do so. population much more aware of their social responsibility

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10
Q

So is all your packaging recyclable? M

A

Everything except the label, which is something we want to change - technically it is recyclable, but not every council accepts poly propylene at the moment. That’s one of the things we’d like to use your investment for - sourcing bio-degradable labels or printing directly onto the glass - then absolutely everything we use will be fully eco, down the starch based packing peanuts, biodegradable bubble wrap and paper tape that we use.

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11
Q

Are your products organic? P

A

Our washes use a certified organic liquid soap base, and we use organic ingredients such as organic avocado oil and cocoa butter in our lip balms… as we lower our production costs, we would like to continue to expand our organic range.

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12
Q

Why aren’t you 100% organic? P

A

When a product is made with multiple ingredients, even the best known organic skincare brands in the UK are not actually 100% organic, as it’s not possible to certify water or salt, for example. .

Last ditch:
LAST DITCH: Deborah, we know organic is important to you, it’s important to us too. We’ve seen small batch producers go organic from the get-go and price themselves out of the market - we didn’t want to do that. We were hoping you would see us as company who is trying to do the right thing and wants to expand our organic range - we continue to incorporate organic ingredients and so that still can have a range of organic products that aren’t prohibitively expensive.

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13
Q

What is your USP, how are you different? Does what you do already exist? P

A

Well, in addition to being certified cruelty-free and vegan, We are UK’s first and to date only certified palm oil-free company, with our entire range certified.

There are brands who are free from, and there are brands against animal testing, but we’re the only brand in the UK offering all those things in addition to being certified palm oil free. The other things that set us apart are our ethical credentials, award-winning formulations, unique scent range, avoidance of single-use plastics, and the fact that we donate 10% of our profits to charity, if selling in the UK, committed to selling in the UK

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14
Q

This is not affordable - this is expensive - it’s a luxury product M

A

There’s a growing market for personal grooming and self-care, and consumers understand that there’s no such thing as cheap products - they’re willing to pay a bit more for products that are skin-friendly and environmentally friendly.

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15
Q

The beauty market - it’s quite saturated - how do you plan to carve out a market share? M

A

Huge, growing market, 20% in the next 10 years, more and more people looking for eco and free from products, It’s true that the beauty market is crowded, but we are beginning to find a foothold within the fastest growing sector of that market, and competing with some of the well established eco-luxe brands.
We have 25,000 followers on social media and 500 five-star reviews.

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16
Q

Who are your competitors? P

A

There are brands like NYR who also use lots of natural and organic ingredients and who, like us, are free from parabens, SLS, etc, but they aren’t palm oil-free and they are quite a bit more expensive. There are brands like Lush and the Body Shop who famously against animal testing but are not free from parabens , SLS and not palm oil-free, - we’re the only brand in the UK that we know of offering all of these features, at a competivie price point, in addition to being certified palm oil free, and hamdmade in the UK

17
Q

I want to know where do you sit amongst your competition? M

A

Nobody else doing what we’re doing in our price range. Most of our products are priced quite affordably compared brands of similar quality. I think winning best FreeFrom Skincare brand in our second year of trading shows the strength of our formulations and that we can we can compete amongst better known and more established brands.

We want to be the go-to brand for reasonably priced products which customers can be confident are kind to both the environment, and to their skin.

18
Q

Can you be copied? P

A

They copy our concept, but can’t copy our awards, our scent range, or the reputation we’re cultivating through our excellent reviews.

19
Q

You wouldn’t be able to compete - 7 figures - M

A

There are many well established companies in this sector which have grown from very humble beginnings. We’ve successfully utilised social media, developed relationships with bloggers and influencers and been featured in magazines. We’re realistic enough to know that with our budget, we’re not likely to take any supermarket shelf space away from the Loreals of this world, but we see our route to market through retailers like John Lewis, Marks & Spencers, Boots, Holland & Barret and through having a strong online presence.

20
Q

How will you tempt customers away from them? M

A

Our high quality products, already endorsed by a strong loyal customer base, Our strong “free from” / eco credentials, award-winning products, accessible pricing and appealing scent range help us to compete.

21
Q

How do you compare price wise to your nearest competitor P

A

Our products are generally priced between £2-5 pounds below our nearest competitor, for example.

22
Q

What is your exit strategy? M

A

We’re passionate about growing our company and our ultimate dream is to see our products rolled out across the global market. If an investor who shared our core values and our vision for the company wanted to help us realise that dream, we’d certainly be open to that.

23
Q

What is your marketing strategy?

A

Thus far we have not spent a lot of advertising or marketing, but we have done some organic PR by pitching our story and products to magazines, etc. We have experimented with sales funnels to create a self-funding facebook adverts to grow our customer base. We have worked extensively with bloggers and influencers in our target demographic, and our next step is to collaborate with one of the leading beauty subscription boxes to get our products into the hands of 30,000 engaged consumers.

24
Q

Have you had any experience in business…. what happened? M & P

A

Preya: I come from a family business background - my great grandfather started a shop making and selling jams, peanut butter and cheese in the foothills of the Himalayas in India, which my family still runs today, so business is in my blood, and I learned early on about the passion behind creating a truly excellent product as well as forging excellent relationships with your customers.

Med: I used to have my own driving school which I discontinued about ten years ago, and that taught me a bit…. especially about utilising social media. When I was younger, I owned a nightclub…

25
Q

Where do you want to sell your products? P

A

Wholefoods, Ocado, Holland & Barrett, Boots, John Lewis, Marks & Spencer, House of Fraser, Sephora

26
Q

GP NP for years 1 and 2 + projections

A

April 1st 2016 – April 1st 2017:
Turnover: £70,000
GP £29,500 42.5%
NP -£788

April 1st 2017 – April 1st 2018:
Turnover: £125,000
yGP £60,000 48%
NP £24000 19%

April 1st 2018 – April 1st 2019:
Turnover: £230,000
GP £115,000 50%
NP £55,000 24%

April 1st 2019 – April 1st 2020:
Turnover: £460,000
GP £244,000 53 %
NP £110,000 24%

April 1st 2019 – April 1st 2020:
Turnover: £1,000,000
GP £530,000 53%
NP £250,000 25 %

27
Q

How much cash do you have in the bank? M

A

5,000

28
Q

When will I get my money back?

A

Max 3 years, but with strategic partnership we’re looking at 18 months.

29
Q

What do you need the money for? M

A

help with branding and direction - opening doors, help with sourcing, production

30
Q

Where are you currently selling? M

A

Year 2: 42% (Year 1 31%) : trade customers, such as Eden Project, Anthropologie, Moonpig, National Trust and approximately 36 smaller shops and boutiques

Year 2: 35% (Year 1 56%): Not On the Hight Street

Year 2: 19%(Year 1 7%): Our Website

Year 2: 4%(Year 1 6%): Other platforms such as Etsy, Ethical Market, Amazon & Ebay

31
Q

How much money are you spending every month?

A

FILL IN

32
Q

How long will that capital last?

A

FILL IN

33
Q

Are your products all natural?

A

Mostly natural, though we’re proud to use some synthetics where it’s more ethical to do so and where it doesn’t compromise the quality of our products - such as synthetics vitamin e, as natural vitamin e is palm-derived. - the synthetic vitamin e is great for your skin and more eco-friendly.

If pressed…
Natural is not always better - there are plenty of natural ingredients that are neither ethical nor safe, so we like to examine the safety, effectiveness and eco-credentials of the ingredients we use.