Cutting your losses.
It is an important business lesson which a team of Queen’s High School pupils learned during this year’s Lion Foundation Young Enterprise Scheme competition.
The competition gives year 12 and 13 pupils the chance to set up and run their own business for a year.
Jordana Taylor, Raiven Todd, Georgia Chester (all 17) and Kiya Lawson (18) had devised a business plan for children’s travel packs but decided to revise the idea just before the Dragon’s Den pitch competition in June.
“It wasn’t working the way we’d planned out,” managing director Jordana said.
Instead the girls came up with a new idea of creating pamper packs.
The packs combine items made by themselves and provided by skincare companies Savar and Snowberry and tea made by Artemis.
Jordana said the packs, named Aurum Pamper Packs, included items the girls personally enjoyed.
Aurum was chosen for the business name because it is the Latin word for gold, which is the company colour.
Nine orders have been received so far. The girls aim to fill 25 orders before the middle of September.
Jordana said one advantage for consumers was that by buying the Aurum Pamper Pack they could sample a range of different products.
The girls also made sure the items used by the team, which include a “bath bomb”, were available in Dunedin so they could easily re-stock if necessary, Jordana said.
Besides knowing when to cut your losses, she said she had also learned about the importance of developing a product which could be taken to market quickly.
“I also did this [YES] last year and I dropped out of it near the end because it was not working at all. I’ve learnt that it’s better to do something that can be produced quickly, especially in the short amount of time we have during the scheme. If you [do] you can sell more.”
Marketing was also important.
“If you don’t market your product then people aren’t going to know that you exist.”
To place an order, check out the Aurum Pamper Packs Facebook page.
The next major deadline for the team will be submitting their annual review to the Otago Chamber of Commerce and the YES Trust on October 2.
The Otago regional winner for the scheme will be decided on October 25.