NEW ZEALAND’S E-MAG FOR ENTREPRENEURS AND BUSINESS OWNERS
December 2016 Vol 1
NZ Entrepreneur: New Era, New Format The Leap: An Entrepreneurs Review
Market Validation Elevator Speeches: Why You Should Ditch the Pitch
The Science of Fashion AN INTERVIEW WITH
LEILANI & ANASTASIA RICKARD of Natura Aura
www.nzentrepreneur.co.nz
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FROM THE EDITOR Four years ago in November 2012 we launched NZ Entrepreneur to help inspire, educate and celebrate entrepreneurship in New Zealand.
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ince then, as part of our mission to show we all have the potential to be entrepreneurs, we’ve showcased 100+ #nzentrepreneurs from all sorts of backgrounds, industries and parts of the country.
provides them with breathing space and a stable base from which they can then start to lay more grandiose plans. It’s pretty hard to think about what kind of sand sculptures you’re going to build on the beach when There is no doubt that us New Zealanders are amongst you’re just trying to keep your head above water! the most entrepreneurial people in the world. We As they say, you can have the best product in the are consistently rated the “easiest country to start world but if you don’t know how to sell it, it’s a business” and our understated “give it a crack” worthless. For this reason, from this issue on, we mentality and DIY ethic ensure we have a very high have made the decision to publish our business quota of startups, small businesses and self-employed growth sister titles NZ Sales Manager and Marketing Online as part of NZ Entrepreneur. We hope that business people for our population. The trouble is, as media commentators and the investment community readers of NZ Sales Manager and Marketing Online point out, we don’t have enough of them kicking on to will continue to enjoy our sales and marketing content in it’s new home within NZ Entrepreneur. become large, truly global businesses. So while we’re fairly good at innovating and mobilising products, services and business ideas, we need to work on our ability and desire to grow our businesses. And while we absolutely need more entrepreneurs thinking “global from day one”, the reality for most #nzentrepreneurs is that they need help right now just growing their businesses to a level of revenue which
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In addition, rather than push out once a month, we’ll be breaking NZ Entrepreneur into smaller, more digestable installations shared on a weekly basis to provide a more consistent flow of inspiration, education and information. Enjoy!”.
Richard
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CONTENTS 4. 12. 18. 22. 24.
10 Questions with Leilani & Anastasia Rickard of Natura Aura The Leap: Event Review Market Validation Forget Driverless Do You Really Need an Elevator Pitch?
CONTACT US
ABOUT / Short and sharp, New Zealand Entrepreneur is a free e-magazine delivering thought provoking and enlightening articles, industry news and information to forward-thinking entrepreneurs.
EDITOR / Richard Liew ART DIRECTOR / Jodi Olsson GROUP EDITOR / Colin Kennedy CHIEF FINANCIAL OFFICER / Alastair Noble
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CONTENT ENQUIRIES / Phone Richard on 021 994 136 or email richardl@espiremedia.com ADVERTISING ENQUIRIES / Jennifer on 0274 398 100 or email jenniferl@espiremedia.com WEBSITE / nzentrepreneur.co.nz
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INTERVIEW
The Science of Fashion: An interview with
LEILANI & ANASTASIA RICKARD of Natura Aura INTERVIEW BY Julia Charity
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“You can’t connect the dots looking forward; you can only connect them looking backwards. You have to trust the dots will somehow connect in your future.”
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teve Jobs said, “You can’t connect the dots looking forward; you can only connect them looking backwards. You have to trust the dots will somehow connect in your future.”
and tradition has led to incorporating little images and colours, lines and shapes with contemporary fashion to create a rainwear collaboration with Blunt Umbrellas.
This month’s story is about connecting a collection of ‘dots’ - the unlikely fusion of fashion and science inspired by nature.
Natura Aura has already picked up the Established Designer Award in the Miromoda Fashion Competition and showcased at New Zealand Fashion week. Their Iwi Creations hosiery line also has been a huge hit with the fashion world. The company now has stockists in the North Island and are currently looking for more in the South.
Like many stories, it started with a door knock. My neighbour, a grandmother, Leilani, asked if I had a job for her ‘moko’ – 18-year-old granddaughter, Anastasia. I was about to launch the inaugural Maori internship programme, at Scion, in Rotorua. Ana was recruited as an Intern to study cell walls of fibre plants, like harakeke (flax) to predict the products they might be useful for in future ‘biomaterials’. Ana used fluorescent dyes to colour the fibres and took photographs through a highpowered ‘confocal’ microscope to create images. Fast-forward seven years: Leilani Rickard and her granddaughter, Anastasia started a fashion label Natura Aura. The melding of technology
Who could have predicted those images would have inspired fashion garments selected by supermodel Jessica Minh Anh to represent New Zealand on a floating catwalk on the river Seine, in Paris? Last week I bumped into my old neighbours Leilani and Ana and heard their remarkable journey. A story that reminds us that you really can’t join the dots going forward. w w w. n z e n t r e p r e n e u r. c o . n z
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NZE: How did you come up with the idea to put plant cell walls on rainwear?
How do you know when you’re onto a good idea?
LR: We won our section at Miromoda, and everyone LR: I’ve been weaving harakeke (flax) into piu piu kept saying they were amazing. The prize was to go to New Zealand Fashion Week. Not long after that, (‘dancing skirts’ used by Maori) and designing we were invited by Jessica Minh Anh to represent hosiery for years. Because of Ana’s work at New Zealand at her Autumn Fashion Show in Paris. Scion, a visiting German scientist came to look around at the plants. She gifted me a CD of AR: I think when you get a supermodel wearing images of the cell walls – like the ones Ana had your garments – that’s a real achievement. There taken all those years ago. was also a distributor we met in Paris who said the industry needs something like this that can draw I’d been working with the outer beauty of this people’s emotions but is about the environment. plant for 40 years, and here I was staring at its inner beauty. I said to myself, I have to do something special with this.
How did you survive those early days?
Not long after that, I was invited to enter the Miromoda Fashion Design Competition. I thought about our ancestors and how they made pake (rainwear) to protect themselves – so we put together a collection of rainwear. And then the umbrellas just came along.
LR: Making piu pius by the galore! I felt so blessed that I had that to fall back on. I don’t know how many times I thought, “I’m over this”. You feel like you’re just about to get your head above the water and something else pops up. It’s been tough, but then another piu piu order would come along, so I just kept going.
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How did you end up working together? LR: Ana’s helped me out for years. I’d pay her to whatu (finger weave) the piu piu. Ana’s got that same passion but a different way of thinking – but we just gel together. I’m no whizz on the computer and she just seems to knows how to sell. One day I said – how about we go into business together? AR: It’s been a cool project putting my grandmother’s and my ideas together. We’re really different, but somehow it works.
How do you market your products and what advice do you have for others? AR: People are happy to pay for the quality. They’re high-end, so we’ve gone for exclusive stockists like Blunt umbrellas. We’ve showcased our products in fashion shows and done a lot of social media. It doesn’t make sense to carry stock everything is custom-made to order. We’ve also just got a website and handle enquiries as they come in.
What are some of the challenges you’ve had in business? LR: We’ve had lots of hiccups - mostly mistakes of doing what other people said we should do. We’ve got our feet much more on the ground now. We’ve had some sticky patches financially, but we just had to keep having faith in what we were doing. We also made the decision to focus our range only on umbrellas and rainwear. AR: Juggling the responsibilities of working full time and getting a business off the ground. It never ends! w w w. n z e n t r e p r e n e u r. c o . n z
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Harakeke has been a plant that has been used for hundreds of years for clothing. We want to keep connecting the past with the future. Science, nature and fashion – we’re all evolving together...
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What’s it like representing New Zealand internationally and have you got any advice for others who represent NZ in business? LR: Oh gee, we hadn’t done a lot of fashion shows, so didn’t really understand the logistics. But working with Jessica was amazing. It was great to hear the fashion media talking about New Zealand. One distributor said that there was an emotional connection with our garments because they were inspired by nature. I’d say to people you’ve got to think about what happens beyond the show as well.
Does it really take money to make money?
What’s next? What does success look like for Natura Aura? LR: Harakeke has been a plant that has been used for hundreds of years for clothing. We want to keep connecting the past with the future. Science, nature and fashion – we’re all evolving together, so we’re going to stick with the rainwear and umbrellas, but we might do neckties as well. We’ve got to think about the buyers. There could be a market for females scientists and businesswomen. AR: Increasing the number of stockists who hold our product, both nationwide and internationally and become a global brand. ○
LR: Yes! [laughs!]. AR: Yes! Particularly with fashion.
How important is passion, in fashion?
www.naturaaura.com
LR: It’s everything. My passion for harakeke and making wearable arts is what’s kept me going. I’ve always had an eye for beautiful fashion and making things that people love wearing. You can just tell by looking, how much passion people have put into their garments.
www.facebook.com/naturaaura
Acknowledgements: Natura Aura would like to acknowledge the CK Design Team, Charles Parsons fabric, Lloyd Donaldson, Nancy Hati from Scion. Photographs in Paris: John Oakley and Douglas McWall from J Model Management Paris.
What are the three business skills you would advise up and coming entrepreneurs to develop? LR: Know what your numbers mean and be honest about the money. Do what you can, not what you feel obligated to do. Get a strategic planner – they’ll help you see what you can’t see. Learn – go to workshops, do the networking, take opportunities when they come.
Julia Charity is an entrepreneur and writer juliac@espiremedia.com juliacharity
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ECOSYSTEM
THE LEAP Event Review BY Kim Knight
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he perfect antidote to the often isolated life of an entrepreneur is an opportunity to mix face-to-face with others in the same boat, and hear from a bunch of inspiring people further down the long and bumpy road who are willing to tell their honest story and impart some golden nuggets of wisdom. The Leap – New Zealand’s Entrepreneurs Festival held in Auckland on 11 November 2016 was one such antidote for almost 500 current and budding entrepreneurs, and thanks to some savvy pre-event hype and a stellar lineup orchestrated by self-made lifestyle entrepreneur Robett Hollis, everyone who attended was positively buzzing from the outset. Anyone will tell you that Robett’s energy is palpable and that energy coupled with his obvious passion for bringing people together and making space for opportunities to emerge underpinned the vibe of the entire day. This worthwhile event steered clear of the traditional format of sitting and listening to a set of long presentations, with little opportunity for conversation and connection. Far from it, The Leap had people racing to the stage to deliver one-minute pitches, standing up under lights if you had particular skills or advice to offer someone in need, asking hard questions of those bearing all on stage, meeting as many new people as possible at each break, and being served beer by an industrial robot named Baxter. Naturally. w w w. n z e n t r e p r e n e u r. c o . n z
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Founder of Marketing Mate Kim Knight (right), soaking up the atmosphere with fellow entrepreneurs
But most importantly, The Leap’s 20 speakers came from a broad range of age groups, backgrounds, industries, and corners of the NZ start-up. They spoke intimately and honestly with the audience, in brief, but quality-rich bursts that held our attention and imaginations with every word. In this eclectic but strangely perfect mix of speakers, we were taken on a magical journey of stories, advice and insights from seasoned entrepreneurs and investors, a school-aged prodigy, a business journalist, a sporting hero, recent leapers, never-say-die pioneers, global crusaders, and a range of people providing advice on practical tools, funding channels, networks and contacts anyone could access. w w w. n z e n t r e p r e n e u r. c o . n z
The word ego never came to mind, and instead, vulnerability reigned as speaker after speaker spoke from the heart, exposing their dirty laundry for all to see, followed by how they got up, dusted themselves off and kept going to achieve great things. It was clear that anyone can achieve their dreams, and one thing is for sure - we’ll all face our own set of challenges along the way. In the absence of being able to cover all of the great stories and advice imparted on the day, here are some key themes that came through to the crowd and resonated with me, as an entrepreneur who has recently taken the leap myself.
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Co-Founder of Rhythm and Vines Hamish Pinkham, sharing the challenges and triumphs
16-year-old entrepreneur Rachel Ji proves age is no barrier
Entrepreneur and global citizen Yoseph Ayele, delivering inspiring messages and hope
Founder of 1Centre Miriana Lowrie, delivering her 1-minute pitch
FAILURE IS NOT A DIRTY WORD
THE JOURNEY IS THE REWARD
We were shown many times over that failure is helpful in your journey, exposing weaknesses to work on, and forcing you to innovate and do things better every time. In fact, the sequence of ‘start - stumble - fail - try again - win - repeat’ is more common than we might think.
We were reminded to appreciate the actual journey, and not just focus on the end goal, which changes and morphs over time and is subjective. All of the steps, whether positive or challenging, are part of a unique experience that can be celebrated and appreciated.
THE ROAD IS LONG AND HARD
TAKING RISKS IS KEY
There was no sugar coating the real journey of an entrepreneur. The very nature of starting something brand new with no foundations and a small to nonexistent team means it will take time, be costly and offer up many challenges. Having this awareness may help better manage our expectations.
This was a common theme for the day, with many speakers encouraging us to take risks as a means of testing things out and breaking through barriers, and that it’s the only way to achieve anything of value. w w w. n z e n t r e p r e n e u r. c o . n z
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Organiser of The Leap Robett Hollis keeping the crowd engaged
IT’S IMPORTANT TO FIND A MOTIVATING REASON, NOT A SOLUTION
WE HAVE AN OPPORTUNITY TO CREATE THINGS THAT WILL MATTER
When it comes to long-term survival as an entrepreneur, the advice was to make sure you have a motivating reason or passion for doing what you are, as a mere solution to a problem, no matter how great, often isn’t enough to maintain the commitment needed in the long run.
New Zealand and countries around the world have many pressing social, environmental and life impacting issues that can be alleviated by innovations that we as the next generation of entrepreneurs can create. We were encouraged to consider where we might play a part in changing lives for the better.
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There is no right or wrong age to be an entrepreneur...other factors such as passion, resilience, persistence, and risk-taking abilities are far more important.
TAP INTO THE HELP AND SUPPORT AVAILABLE
AGE IS IRRELEVANT
For many reasons, there are a lot of external supporters who focus on the space because they want us to do well. Governments see the long term benefits to people and economies, investors see opportunities for further wealth and development, and organisations see the potential for social and environmental improvements. As such there are countless incubators, accelerators, angel investors, grants, advisory groups, collaboration opportunities and more, to help keep a strong idea moving.
There is no right or wrong age to be an entrepreneur, and there are pros and cons to all age groups. Some of the speakers proved this point with impressive stories of their achievements despite their age. Other factors such as passion, resilience, persistence, and risk-taking abilities are far more important.
YOU DON’T HAVE TO START WITH MUCH Creating a simple prototype that can begin to be tested is all that’s needed to get going, and is better than investing too much time and money into a perfected product or service that hasn’t yet been validated.
Events like The Leap go a long way to making the journey a lot less lonely and a lot more achievable. I was left with a sense that this was just the beginning of more great things to come for the burgeoning New Zealand entrepreneur space. On the back of the success of this inaugural event came the launch of a new online entrepreneurial networking platform: powermoves.co.nz. Anyone can join to find out about events, networks and opportunities, including the next The Leap event. The more we come together, the more we’ll achieve for ourselves, our country and the world. Bring it! ○
Kim Knight is a Wanaka based entrepreneur and founder of the marketing planning app, Marketing Mate. Photos by Ocean Patrice. www.marketingmate.info w w w. n z e n t r e p r e n e u r. c o . n z
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ENTREPRENEURSHIP
MARKET VALIDATION When is enough, enough? BY Nick Harley
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arket validation is annoying. Why are you wasting valuable time interviewing people about your proposed business? Time that could be spent building your product’s killer features and starting to make some serious money? Right? It’s a dilemma a lot of start-ups face. Many businesses see market validation and research as a thorn in their side...Why? Because the majority of this work needs to be done before and during the initial building of the product - the most exciting time.
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Let’s face it after you have that eureka moment; you start to contemplate the possibilities of what your product could look like, how people use it, the money you could make and what colour to paint the walls of your penthouse office. The last thing you want to be doing is boring market validation. I fell into this trap with my first business. I didn’t do any market validation. I built the product first and then dealt with selling it, blindly expecting people to use it the way I envisioned and to want the same things I ‘thought’ they would want.
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I didn’t ask a single person what they wanted to see until it was already in the marketplace. Back then, I don’t think I even knew what market validation was, how important it is, and why it needs to be done. This was just one of my many mistakes and lessons learned the hard way. I built the product for me but forgot the fact that I am not the customer. When you first start developing your idea, you get a rush of excitement. It is seen time and time again with young companies. There is a wave of activity, hype and ‘coming soon’ enthusiasm. At this point, you must put on the brakes and think about things. If you build this product, will anyone pay you for it? If not, why bother building it? Interview people on the street, talk to your friends and family, talk to business colleagues, carry out online surveys, write blog posts, do online research and make sure you know everything there is to know about the trends of your market and who your competitors are. Collate the information and review it.
Once you have a clear vision and you know there is a demand, and more importantly, people will pay you for it, then go ahead and build!
Build a prototype, a demo or create some screenshots to demonstrate how the product will look and feel. You’ll get better feedback when people can physically see your ideas. Build an MVP (Minimum Viable Product) and go out, talk to people. You can do all of this for very little money. If the market isn’t there, listen to it. Once you have a clear vision and you know there is a demand, and more importantly, people will pay you for it, then go ahead and build! w w w. n z e n t r e p r e n e u r. c o . n z
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Why develop and support a new feature that nobody wants or needs? You should constantly ask your customers for feedback and develop features that are going to add value.
On the flip side, there can be such a thing as ‘too much’ market validation. Business advisory organisations will always require you to do more and more validating (it’s part of their job). You can create business plans which seem to change every week and financial projections with numbers that are plucked out of thin air, but you’re never going to really know things with any certainty until you’re out there in the marketplace. You’ll always be trying to find out what the mystical level of market validation is. You can validate your idea, and it’s market until your face turns blue, but there comes a time when you just have to decide there are enough indicators to suggest you’ll do ok and get out there. Build your product, go out and sell it. Get people touching and feeling your first demo/ beta and ask for feedback on its features; then you’ll be able to refine your product even further. And remember, market validation doesn’t stop after the product is launched. Why develop and support a new feature that nobody wants or needs? You should constantly ask your customers for feedback and develop features that are going to add value.
Nick Harley is Senior Product Manager at Raygun nickharleynz @NickHarleyNZ w w w. n z e n t r e p r e n e u r. c o . n z
Before you spend substantial time and money building your product take some time to complete your market validation, you’ll be glad you did, but don’t get stuck in endless market research and never get around to building it at all. The trick is find the right balance between the two. There is no perfect amount. Start doing it, and you’ll know when you’ve done enough and when you’re ready to start building. ○
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SPONSORED CONTENT
FORGET DRIVERLESS Companies embrace age of the connected vehicle BY Colin Kennedy
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niversal application of driverless cars is some way off yet, but the ‘connected vehicle’ is already gaining widespread traction in New Zealand as the next best thing when it comes to managing driver behaviour, safety and productivity.
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New Zealand companies are using advances in GPS tracking technology to help meet their obligations under the new Health and Safety at Work Act 2015, going so far as to ensure that employees arrive home safely, but productivity and cost control are also right up there on the priority list.
Popular applications for the technology include:
CEO of New Zealand car leasing and finance company Driveline, Lance Manins, says that applications include ring-fencing employees homes to make sure they get home at night and the use of G-Force Meters that alert management the instant a vehicle is involved in a collision.
• Measuring and managing employee productivity and time
“GPS tracking systems have advanced in leaps and bounds, but the way in which the technology is used demonstrates how seriously New Zealand companies are taking employee safety.
Mr Manins said proper monitoring not only contributes to employee and road safety but reduces costs through savings on fuel consumption, tyre wear, maintenance and engine stress.
“The main issue is around privacy and employees taking offence at being tracked, but the company does own the vehicle, and Kiwis are becoming more desensitised to technology overall, which all helps contribute to widespread acceptance,” he said.
“The technology allows management to assess how a driver accelerates, or whether he is using the brake too much – small indicators of driver skill – to determine whether or not a particular driver needs advanced driving lessons.
Signs that privacy around vehicle usage may be a thing of the past include a recent Second Circuit Court of Appeals finding in New York City, which ruled the NYC and the taxi commission were allowed to track taxi drivers for signs of cheating.
“Companies can even set fuel saving challenges for employees to incentivise cost saving and to encourage people to drive more fuel efficiently and sensibly – the technology can now provide reportable outcomes for monitoring and reporting on those outcomes,” he said.
• Monitoring employee safety and driving habits • Measuring mileage, fuel and maintenance costs • Securing the vehicle against theft by location tracking
• Fringe benefits tax reporting • The ability to disable a vehicle when payments fall behind
A single unit typically costs $300, with a monthly $25 management fee to the company handling the telemetry. ○
Driveline is an independent car leasing company founded in 2001 and provides a complete vehicle supply and finance service for their clients. They specialise in leasing and financing vehicles for businesses including passenger and commercial vehicles, fleets and trucks. See www.driveline.co.nz w w w. n z e n t r e p r e n e u r. c o . n z
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SALES
DO YOU REALLY NEED AN ELEVATOR PITCH? BY Ben Paul
BY Ben Paul
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I
f your elevator pitch is simply a way to pass two to three minutes talking about how great you and your company are, my advice would be that you do not need an elevator pitch.
They sell the wrong benefit
In the example above, as someone whose business needs good internet connectivity and speed, the approaches I get are mainly around price. In fact, This may well contradict traditional sales thinking, the aspect of broadband I am least interested in is however, the trouble with an elevator pitch is they saving money, the benefit I am looking for is having comfort that I can rely on my service provider to quite often miss the mark. However, if you can maintain a dependable level of connectivity. If master the art of telling compelling stories about the conversation started with uncovering what is the benefits other customers have gained from important to me, perhaps they could sell me the your product or service, and those benefits are tied to the outcomes your intended client is hoping right benefits of their service. to achieve, then like Charlie’s great glass elevator, you will have lift-off!
They are too generic
WHY TRADITIONAL ELEVATOR PITCHES DON’T WORK Hands up who likes being sold to? Imagine you’re at home one evening and the door or phone goes, and a salesperson is trying to get you to change your broadband provider, they instantly hit you with a pitch, one you didn’t ask for. You are most likely very unreceptive to this approach. The first reason is it is an intrusion on your time. The second is that they have tried to control you. They employ tactics to keep you on the phone and in pushing their message are only interested in getting your money. They most likely offer you cheaper broadband even though you aren’t interested. This goes on until you politely end the call.
Like the ‘about us’ section of your website. Here are some phrases that will make your client cringe: We have strength in depth; We have 50,000 people; We are global; We have leading experts, etc., etc. Your client’s either thinking that sounds expensive, or more likely, “so what?”.
How to tell compelling stories tied to your prospective customers’ needs The first thing you need to do is understand what’s important to them. You need to understand what outcome they are hoping to achieve about your product or service. In short, what benefits do they want from what you have to offer? To be clear on benefits within a business, they come in three key areas: Time; Money; Comfort. w w w. n z e n t r e p r e n e u r. c o . n z
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Once you understand what they are looking for, then you can tell them a ‘three-part story’ of where your company has previously delivered the same benefit to someone else before. These ‘three-part stories’ follow the format below: 1. The need Our client/customer told us they were looking for X 2. The feature: What Bob and Sue delivered was Y 3. Benefit: The client told us that in this project / or from our product they saved time/money or got comfort from the work that we did. (Benefits are typically time, money or comfort in business.) This helped them to achieve their objectives.
You’ll also need a bank of stories, your own and your colleagues that relate to all the different types of benefits. If you do, then you won’t need an elevator pitch but will be able to articulate a winning story linked to what your target client wants to achieve.
To get this approach to work, you’ll need to get feedback from your customers, so you know the benefits that you have delivered. You’ll also need a bank of stories, your own and your colleagues that relate to all the different types of benefits. If you do, then you won’t need an elevator pitch but will be able to articulate a winning story linked to what your target client wants to achieve. ○
Ben Paul is Director New Zealand for The Business of Trust and has over 17 years’ experience in both NZ and the UK in sales and as a coach/facilitator. www.boft.com benpaulbdm @BenPaul_BOFT w w w. n z e n t r e p r e n e u r. c o . n z
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“It’s no longer cool enough to just be in this to make money. There needs to be a purpose larger than oneself, and a cause.” Derek Handley, #nzentrepreneur and author of Heart to Start
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