Small business lessons for entrepreneurs

Entrepreneurs who want real-life small business lessons should look at those who have built their businesses over several years or longer.

I recently interviewed Jason Carr and Rodney Carr, co-founders of a small business that today has 80 employees in the Los Angeles area plus representatives and showrooms in New York City on Fifth Avenue, Atlanta, and facilities in Montreal.

They’re celebrating their 10^th anniversary as a company and have learned quite a few business lessons along the way.

As entrepreneurs, they launched their operation in August 2001 with little money and learned real-life business lessons in financing and building their reputation. Softline Home Fashions provides stylish yet affordable fabrics for homeowners, decorative pillows, and fabrics by the bolt.

Business Plan

“We followed our business plan,” Jason told me. “We started selling polyester when the world was using silk. We’ve stayed within our niche and we’ve done it well.”

Part of their plan has been finding ways to lead by introducing an array of styles and colors. They will maintain a line of fabrics for up to three years to service the retailers.

“We’re fashion forward,” said Rodney. “It’s been our plan to take risks with styles and colors. We understand color.”

Softline Home Fashions may offer up to 30 colors of the same fabric and styles today include natural fibers and eco-friendly materials that both blackout and block out light, heat, and cold.

Partnerships

Business partnerships can easily crumble during tough times. Jason and Rodney both have backgrounds in retail and they trust each and the decisions they make for the company. Jason handles operations while Rodney focuses on sales.

“We always had a goal in common,” said Jason. “And we set our priorities straight.”

And they don’t disagree on the core competency of their business. They have agreement on the products.

“If we have a disagreement, the question becomes, ‘how do we get to the same page of our goals?’” said Rodney. “I trust Jason’s decisions are 100 percent for the company and he has to trust the same for me.”

Product and Pricing

“Make sure you have the right product and the right pricing,” said Jason. While the Carrs provide the look of silk, but not the expense, they’re aware that other companies may try to undercut them on price. “There are people who take an order and who will do it cheaper.”

The Carrs communicate closely with their customers and offer programs such as a Direct Import Program to connect them directly with suppliers.

Softline Home Fashions will introduce a style and color and then offer it continuously for three years to service the retailers.

“Our job is for our customer to love our products and make it happen without hitches,” said Rodney. “We want to make the business seamless for them.”

Invest in Infrastructure

The brothers admit that during the first two years they were focused on selling—like any new business trying to win the first accounts. In their second year of business, a customer wanted fabrics for 900 stores but they had to scramble to finance the order. Banks didn’t offer them financing until their third year in business.

“We learned to look internally at how we were handling our finances,” said Jason. They listened to input from the bankers and improved their infrastructure at that stage.

They recently added two new strategic positions to the company including hiring a general manager.

Future Planning

While the Carrs have a 10-year track record to build upon, they plan to keep leading in their industry.

“We’re always launching new products more than any other company,” said Jason, “and we’re constantly looking for the next great design.”

“We want to remain fresh,” added Rodney.