Our relationships with pets have deepened during the pandemic, and the term “pandemic puppy” was coined. People started adopting puppies to help alleviate the isolation caused by the pandemic. People treat their pets as family members, so it makes sense that dog lovers are spending more money than ever before on their pups.
Meet Parisa Fowles-Pazdro, Founder of maxbone, the digital platform for pet owners offering beautifully designed and sustainably made food and treats, clothing, toys, and products. Maxbone has seen more than 300% sales growth year over year, and there is no sign of this growth slowing down.
Parisa Fowles-Pazdro
John Schell
However, Parisa notes that finances and operations can either make or break entrepreneurs. She wishes she had found a course on how to start a business from the start. Learning about sales taxes for different states, workman’s compensation insurance, creating a company handbook, drawing employee contracts, how to read a business model, or making a business presentation are basic skills that no one teaches.
As a founder, you need a particular strength and stamina to be successful. Your idea and passion around it will make a difference, and you need to hold that vision strongly so that any obstacle that comes your way is not going to stop you and your mission. Founders get tested on so many levels, and you may want to give up many times, but you keep going with the idea that you could make the world a better place.
Parisa faced many challenges starting out, and shares this advice with you:
1. Don’t be afraid to disrupt an industry
When she founded maxbone, there were no other branded pet companies in the space offering the same products. She entered an underserved market and had to change the customer’s behaviors by communicating the value of maxbone. Fortunately, she had a great product, and they continue to educate the industry about the pet product shopping experience, even after years in the business.
2. Strive for customer loyalty
Customers are at the heart of all business decisions, so your primary goal is to sustain their loyalty by coming up with creative and refreshing ideas that will keep them excited. You don’t want to rely on buying a customer over and over again through paid marketing. Keep the customer engaged since it’s cheaper to retain customers than constantly acquiring new ones. Keep your efforts relevant and innovative.
3. Invest in a good team
Start with good hires, take your time when you hire, and let the person go quickly if they are not working out. Having the right team is key to building a successful business, and most of the time, poor performance is rationalized far longer than it should. Hire slow, fire fast is Parisa’s tip for entrepreneurs looking to build a strong team that will be in for the long haul with the company.
4. Venture Capital Funding
It can be challenging to get funded as a female founder, especially considering only 2% of female entrepreneurs reach a $1 million hurdle. Fortunately, Parisa reached that in the first year, so her advice is to believe in your conviction. Sometimes rejection is a good way of getting even more ammunition to succeed.
5. Identify your core items and manage inventory based on data analytics
Learn what your best sellers are quickly and learn to manage inventory accordingly. If you need to reach $10 million in revenue, then plan inventory management around that goal.
6. The balance between taking advice from investors and trusting your instincts
The process of raising money can be difficult as investors will have different opinions and advice about your business. Although getting new insights from experienced people is valuable, it could also put you off track. Some investors follow the herd when they think the DTC approach is suddenly the new trend. However, two years later, they realize omnichannel is, in fact, more important. We’re fortunate to have a visionary investor who supports our business evolution and believes in our mission besides any new trend. Make sure you find an investor who is excited about your company and what you’re trying to build.
The bottom line is that business management will always have its challenges, but it also has its wins. Being sure you are in business for the love and passion of it will help you overcome the obstacles. And remember, every challenge is an opportunity to learn.
