Robyn Smith: If you know your worth, you will command it naturally
Robyn Smith is the founder and director of Faithful to Nature, a company that in eight short years has gone from strength to strength. Faithful to Nature is currently South Africa’s largest green online shop and they only stock and sell products that fulfil a very strict ingredient and production policy. Founded in 2007, Faithful to Nature offers great customer service, same-day dispatch on most orders, and detailed product information ensuring peace of mind for customers. . In this interview, Robyn shares her experience with us, the ups and downs of owning a business, what it takes to make it and more.
Tell us a bit about your business and what motivated you to start?
Faithful
to Nature is South Africa’s largest eco-friendly online shop with the
vision of becoming ‘Africa’s Green Amazon’. We were one of the first
companies worldwide to create and implement a very strict ingredient
policy that determines which products we sell and which ones we don't.
This policy is our DNA and is designed to empower our customers on their
journey towards ethical consumption and a healthier, greener life. We
offer over 11 000 carefully selected products in the food, beauty,
lifestyle, cleaning, home, garden and pet categories.
I
recognised at an early age that I was wired to be my own boss, but it
was only when I became passionate about the value of using organic
products myself that I recognised a gap in the South African market. I
had recently returned from a few years in London in 2006 and became
aware of the rather poor distribution of truly natural products in South
Africa as well as the surrounding confusion in the market about what
constituted a genuinely non-toxic product.
How did you raise your start up money?
I
used my savings from working in London for 2,5 years but I have to say
we had minimal start-up costs and had to foster a very lean and
innovative business culture as a result.
Did you write a business plan? Was it an effective tool for you?
Yes,
as 101 as this is, I am a firm believer that everyone needs a business
plan. You need to know what differentiates your business idea, and this
is a great support to ensure you have looked at the execution of your
plan from all angles.
Who did you hire to help you with your business - bookkeeper, an accountant, lawyer …?
Due
to our limited starting capital, I had to become a “jack of all trades”
and when I look back now I surprise even myself at how many different
functions I would execute on during an average business day. Our first
hire was actually a very shy domestic worker to help us pack boxes. By
the time she left us 6 years later
she was proficient on a computer and we had also taught her how to
drive. In fact, the first 5 hires were all generalists - our limited
budget forced us to find people with potential but with a fairly
chequered education and experience whom we would then up-skill. This is a
testament of course to how important entrepreneurs are in building a
strong and empowered middle class in South Africa.
Would you suggest others do the same?
It
all depends on your budget. I do believe the strength of your success
lies in the team of people you find and develop, so if you can afford to
hire highly skilled people who will add value from day one, then do it.
Otherwise, if you cannot afford it, then commit to developing future
superstars within your company. Faithful to Nature owes its success to
each and every individual who has worked at the company in its
lifetime.
Have you outsourced any portion of your business? And has that worked for your business?
The
heart of our business are our customers and the largest contributing
factor to our success has been our extraordinarily high customer
retention rates. The fact that we offer very customised and personal
service has meant that we have had to keep everything in-house to
maintain the high level of quality we expect. Whilst we tried to
outsource various pieces of our operations initially, we have been
unable to find partners that genuinely share the same level of
commitment to their customers as we do.
What have you done that has been very effective in helping to grow the business?
We
understand the lifetime value of each and every customer. That means
there is no limit to the cost and time we will put into ensuring that
customers are satisfied. The way we have empowered our customer services
team to execute on this is to give them an unlimited budget to solving
issues on the spot with customers when they arise. We put our customers
first and as a result, our customers are extremely loyal and motivated
to help their networks become “Faithful to Nature” as well.
We
also have a very strong set of values within the business which guide
the way we sell and also what we sell. We absolutely will not compromise
on this, and the fact that our customers can shop in a completely
“worry-free” zone with our large selection of carefully screened
products is a very powerful platform from which to sell.
How do you effectively manage the finances of your company?
We
have a very detailed cash flow management system that we update and
report on daily. We update our forecasts monthly and rework our business
plan every 3 months.
Do you have rainy-day savings for your business?
Not
really - we put any profits back into growing our inventory, however,
we have secured investment for the company which has created a safety
net of sorts.
What's a financial mistake you made as a business owner in the beginning? And how did you bounce from it?
Natural
and organic products have fairly limited expiry dates and we were too
ambitious (by a long way) in the amount of stock we bought for the very
first trade show that we partook in. This has actually happened a few
times - an experience many retailers would understand. We were always
able to turn potential disasters like this into opportunities though by
using the stock as marketing collateral to increase our brand equity and
engage with new customers.
With the current economy slump, what cost saving tips would you share with new entrepreneurs?
Marketing
is a vital function in every business but I would recommend
stress-testing your budgets at every chance. This is one area of the
business where innovation should be encouraged because there is so much
than can be achieved by playing smart. With the right focus, a good
quality product offering and a deep understanding of your customer, you
can grow your business without spending a fortune.
As
an example, we could not afford to spend any cash on any item in the
business that would not directly translate into customer acquisition or
loyalty when we first launched, and this applied to business cards too.
This challenge forced us to be extremely innovative and so we created
credit card-sized pocket guides for safe shopping with our business
details on them in lieu of business cards. With “business cards” that
now added value to customers, we had inadvertently created very smart
marketing material that our customers wanted to share with their friends
and family.
What advice can you offer female business owners on making sure they're being compensated fairly for their work?
Believe
in yourself and work on believing in yourself more each day. You are in
such a privileged position as a business owner to really be a master
creator and if you know your worth, you will command it naturally.
Do you have business mentors, and if so, how have they helped you develop as an entrepreneur?
Unfortunately,
I had very little support in terms of business mentorship, and it is
something I regret not fighting harder for. There are so many networks
that offer support to entrepreneurs and I would highly recommend finding
one that works for you.
What have you learned from starting your company that might be useful to would-be entrepreneurs?
As
an entrepreneur, you are 100% responsible for every touch-point in your
business. If you are able to develop the self-awareness to be ruthlessly
honest with yourself about weaknesses in your skill set, aptitude, and
managerial style, you will be better able to find support and turn these
areas into strengths.
Your business success
will largely be influenced by the team of people you choose to work
with, so hire very carefully and be brave enough to call it when
relationships are no longer manifesting the best interests of the
company.
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