New Venture Lab: Equipping Christian Entrepreneurs

Former Engineer Successfully Launches Online Jewelry Site

This profile features a former engineer that successfully launched an online specialty retail website, but only after learning some painful lessons with a physical retail store.

Name:

Paul B.

Family Description:

Married since 1987 to Cindy.  Son Jeremy is on the Dean's List and works at Starbucks.  Daughter Alyssa is a homeschooled Sophomore and very creative.

Business Name:

OhioBeads.com

Business Description:

Online sales of DIY jewelry chain, jewelry findings and jewelry beads, with focus on jewelry chain and matching findings.

Location:

Web sales only

Formal education/training:

BS, Industrial Engineering, Texas A & M University, College Station, TX, 1986.
APIC CPIM 1992.

Prior work experience:

• Cognis Corp., contract Purchasing, 2008 - March, 2009
• Ohio Gems, Inc./OhioBeads.com, owner/manager, 2001 - Present
• Safe & Sound Systems, office manager, 2001 - 2002
• Application Objects, Inc., software analyst, 1998 - 2001
• RPMI, sales support and installation management - conveyors, packaging equipment, 1996 - 1998.
• The Limited, staff engineer, 1994 - 1995
• Lockwood Greene Engineers, Instrumentation & Controls and Industrial Planning Group, Jr. Analyst, Analyst, Sr. Analyst, 1988 - 1994
• Berkline Corporation, furniture Plant management 1987

Forming the Idea:

First idea at entrepreneurship was oriented toward a retail store for faceted gems.   Stiff competition plus high startup costs steared us toward opening a full service bead shop instead.

How you got started:

Except for two days of consulting/training, everything else we did was bootstrapped, from store lease to credit card processor.

What was it like in the beginning:

The beginning was exciting and terrifying.  During our first two years, we showed tremendous growth, but we had too many services that made no money and did not result in backend sales.

After our initial three year lease, we moved with less than desirable results.  After two years in that location, especially when we calculated how much the emerging web business was subsidizing the bricks-and-mortar store, we closed the store to concentrate on the online business while I took a contract position in Purchasing.

What stage the business is at now:

We are investigating our product set versus the jewelry-making niche at large.  We're working on article marketing and other traffic-building exercises.  Our web traffic is almost 100% organic search and repeat business.

The biggest challenge you’ve faced:

Keeping our time prioritized toward the important rather than the urgent is the biggest challenge.  There is always some other correspondence, some other bill, some other tax return, some other product to look into.

Christian worship, key friendships, networking and accountability are vitally important.

Key steps that made the difference:

We have worked hard, but hard work is not the only ingredient in a successful business.

Lessons Learned:

1. The borrower becomes the servant of the lender.
2. You will learn to "pray without ceasing."
3. Your true character will be revealed under pressure.

The best advice you received:

"You will not build a business in three years, then sell it and be rich."

What your work and family life was like before:

Working a 40 or 45 hour week is easy if you can check all your work issues at the door on the way out.  An early stage business has no start and stop time without conscious effort.  My biggest issue was working for intelligent people with no moral framework.

What your work and family life is like now:

We work too much and rest too little.