President/Sassy Empress & 8 yrs. old, VP of Ideas
www.sassytails.com

Solve a small problem that many people have in common, and maybe you too will discover a promising business opportunity.

Kim Madden’s problem: her six-year-old daughter, Heather, refused to wear hair bows, but Madden wanted a way to keep Heather’s hair out of her face. So together they came up with a combination of pink ribbons and white feathers that Heather thought looked “sassy.” Her girlfriends agreed, and soon Sassy Tails was born.

Madden founded Sassy Tails last year, and today its hair ribbons – featuring a variety of colors, textures, beads and crystals, are sold in about 80 stores and at www.sassytails.com. As she builds her business, Madden also aims to boost young girls’ self-esteem and entrepreneurial savvy by getting them involved in the company.

Surprise! You’re Starting a Business.

“It was a completely unexpected journey. If you had told me two years ago that I would be doing this, I’d say ‘No way.’ I was in corporate training for clients like Target, GE, Honeywell, Dell and BMW, with an independent company and was a partner there. It was a great career – I was planning to stay there for the rest of my life.”

Big Market for Thingamajigs?

“I started doing these special ponytail holders for Heather, and people who saw them were stopping me on the street. We traveled to Mexico, and people there stopped us, too, asking us where we found them. I had enough business savvy to know there was something going on here.”

“How much do you think the ponytail holder market is worth each year? Take a guess. It’s about $55 million and that does not include Wal-Mart, so the real number could be double.”

Seizing the Opportunity

“All of the hair accessories I found were either poor quality or they weren’t classy. None of them looked fashionable. Not only would my daughter not wear them, but they wouldn’t stay in her hair.”

“So I went into business full-time in August of 2004 and since then, I have gained 80 small stores that carry my products. I’m talking with several national chains. I have learned what fulfillment and distribution means. I have manufacturers in the U.S. and overseas.”

Beyond Dolls and Dress-Up: Getting Girls Jazzed About Business

“What drives me is the involvement of girls in running and growing a business. If I can show girls I can grow a business out of something as simple as ponytail holders, then hopefully they will learn they can grow a business out of anything.”

“I have conversations with my girls about things like profit margins, diversification and manufacturing overseas. I receive handwritten notes and emails from girls all over the country with product and marketing ideas. There are thousands of girls following this company and this emerging story.”

Competition: Bring It On

“The funniest stories are when these girls find competitors trying to knock off our products. They get upset and are quick to let people know those products are not THE “original” Sassy Tails. I keep telling the girls, ‘Don’t let competition scare you. How many places sell hamburgers? A bunch! It is not always about the product. It is about quality, innovation and branding.’”

Building the Buzz

“Heather and I have been creating the buzz about the product ourselves, with the help of our Sassy Girls, for the past year. We’ve done lots of shows, events, had kiosks at public places … anywhere we could demonstrate how Sassy Tails work.”

“I just hired Buzz Marketing Group (www.buzzmg.com), whose CEO was a Ladies Who Launch featured lady a few months ago. That was a good business decision – one I wish I had made a long time ago. It is amazing to me how the story of Sassy Tails and interest in the product is really generated by word of mouth.”

Today Show Tactic

“I was at the (Today Show) studio at the crack of dawn in November of 2004 with a big poster of my daughter and a Sassy sampler kit for Katie (Couric). I did not have the chance to talk with her that time, but I left the kit with a staffer. I went back to the studio the next time I was in New York, and this time I knew where to stand so I would have a chance to get (Katie’s) attention. It worked!”

“As she finished the interview outside and was dashing back in, I called out to her and asked if she received the sampler kit. Luckily, she did remember the Sassy Tails. She said she took them home to her girls and her personal trainer. I have followed up routinely via mail, giving her updates. Maybe someday this will tactic will pay off… who knows?”

Money Troubles

“I was able to get initial funding from my family and then went to get a bank loan. I had to ask my father to back the loan or (the bank) wouldn’t talk with me. My husband is now my ‘better-late-than-never believer’ in Sassy Tails, but it was not easy at first. Women have a hard time finding capital because nine times out of 10, the spouse is not going to mortgage the house for us. If you talk to most male entrepreneurs, they’re willing to put up the house for collateral.”

“I got to the point where the business was doing well – we had customers, stores, but I needed to find more capital. When I went to the (Ladies Who Launch) incubator in Greenville, South Carolina, I was at a crossroads. I told the other women in the incubator, ‘I know for a fact this product will work, but I’m running out of time and capital to make it happen. Please help me!’ They connected me with people who could possibly be angel investors, but mainly they helped to inspire me.”

“I’m trying to raise 300K and I have a comprehensive business and marketing plan. I am looking for someone with foresight, guts, and intuition to push this dream even further along. Anyone out there? Right now every male-oriented group that I go to is only interested in investing in million-dollar ventures. I don’t need a million dollars right now. Period. I keep hoping I will find an investor who simply knows a good thing when she sees one or one with a daughter who could join us on the Sassy Tail journey.”

Greatest Success

“The fact that I’m still kicking a year into this. It’s been the most amazing and terrifying journey of my life.”

Greatest Challenge

“Focus. Not letting too many ideas (for new products) diffuse my energy. Keeping the energy to move forward and fight all that you have to fight to grow a business.”

Words of Advice

“There are two different kinds of people in life. If both are riding bikes and sitting at the bottom of a hill, one is saying ‘Oh my heavens, I’m not sure we can get up this hill. Maybe we need a better bike? How many other people have made it up this hill?’ And on and on it goes. Others just start pedaling. When you start pedaling, you’re no longer looking up at how high the hill is. Sometimes the chain breaks. Sometimes you get off and walk. But eventually you get to the top.”

Recommended Resource

“A tremendous resource for me was Proforma Rhino Graphics (www.proformarhino.com), a branding and e-solutions firm located in Greenville, SC. They helped me establish the brand, find a manufacturer, and generally guided me as I launched Sassy Tails. Sassy Tails would not exist today without the expertise of their team.”

“I would also recommend a book called the Dream Giver by Bruce Wilkinson. It is a wonderful parable of going after the big dream. Every person who’s trying to do that should read the book. It lets you know you’re not alone.”