Introduction
In a year marked by a surge in business failures, entrepreneurs must be prepared to navigate the fallout from failure. However, the stigma surrounding business failure has diminished in recent years, and entrepreneurs are increasingly open about discussing their experiences. One such example is the husband-and-wife team behind Non Plastic Beach, an eco-friendly retailer that unfortunately folded this year. Gareth and Nicola Dean, the founders, shared their story to help others learn from their mistakes. This article explores the challenges they faced, the macroeconomic circumstances that contributed to their downfall, the lessons learned form failure, and their resilience in the face of failure.
The Birth of Non Plastic Beach
Gareth and Nicola, both aged 42 and from Oxfordshire, launched Non Plastic Beach in 2018. Gareth, with 20 years of experience in PR for the automotive industry, and Nicola, a qualified chartered accountant, believed their skills could complement each other in their dream business. The inspiration for Non Plastic Beach came during a holiday to Mauritius, where Gareth and Nicola, both passionate divers, were disheartened by the sight of plastic bags on the reef. Determined to make a change, they began sourcing and creating environmentally friendly products.
Early Successes and Business Model
Non Plastic Beach initially sold around 60% of its products directly through its website and the remaining 40% through retailers they met at trade shows. Their product range included toothbrushes, soaps, bamboo cotton buds, and other household items. One of their early victories was supplying Etihad Airways with toothpaste tablets for their first plastic-free flight. They also established partnerships with retailers in Portugal and even as far as the Falkland Islands.
The Impact of Macroeconomic Circumstances
Non Plastic Beach faced significant challenges due to the macroeconomic circumstances beyond their control. Gareth highlights that the final quarter of 2019 was particularly challenging as 25% of their business was with the EU. However, after Brexit, their EU business plummeted to a mere 0.5% and never recovered. The subsequent war in Ukraine and the resulting high energy prices further impacted consumer spending. These unprecedented shocks in the economy, occurring sequentially year-on-year, posed a tremendous challenge for a new business like Non Plastic Beach.
The Turning Point and Decline
The Deans realised their business might fold with the mini-budget of September 2022. The demand from their website and retailers dramatically decreased as even financially stable individuals felt the need to change their spending habits. Nicola explains that their customers were forced to make difficult choices between purchasing eco-friendly products or opting for cheaper alternatives. Despite their efforts to adapt, the decline in sales was relentless.
Crucial Marketing Errors
Gareth, despite his background in marketing, acknowledges a crucial error in their publicity and advertising strategy. Non Plastic Beach heavily relied on Facebook marketing, which proved effective until Apple introduced privacy setting changes on iPhones in 2021. As a result, Facebook could no longer track users’ browsing habits accurately, leading to less targeted advertising, wasted money, and a decline in direct-to-consumer sales through their website. Gareth now realises the importance of quickly adapting marketing strategies when running a small business with tight margins.
Missed Opportunities and Trade Fairs
In retrospect, Gareth admits that he should have attended more trade fairs earlier on. Trade shows offer valuable opportunities to negotiate better margins with retailers, which could have helped Non Plastic Beach grow. Gareth recognised the potential of trade shows to generate substantial sales at scale, a lesson he wishes he had learned earlier.
Coping with Failure and Support
Experiencing the collapse of a business can be emotionally challenging, especially when it becomes intertwined with one’s personal identity. Gareth and Nicola found solace in the support they received on social media. Many people were shocked to learn about the demise of their business, as social media often portrays success stories. However, the messages of support helped them through this difficult period. Gareth emphasizes the importance of having a supportive partner in a husband-and-wife team, as they can provide emotional support during times of hardship.
Reflecting on the Experience and Future Plans
Although the failure of Non Plastic Beach was disheartening, Nicola remains optimistic about the future. She believes that embarking on another entrepreneurial venture is almost inevitable. While they need time to recover from this setback, Nicola sees the magic in running one’s own business and is open to exploring new opportunities down the line.
Conclusion
The story of Non Plastic Beach serves as a powerful reminder that failure is an inherent part of entrepreneurship, and even the most well-intentioned and innovative businesses can face insurmountable challenges. Gareth and Nicola Dean’s willingness to share their experiences provides valuable lessons for aspiring entrepreneurs. Adapting marketing strategies, capitalising on trade fair opportunities, and weathering macroeconomic storms are crucial aspects of building a resilient business. By learning from these lessons, entrepreneurs can better equip themselves to navigate the challenging landscape of business ownership.
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