How to… make a good idea work

When Selfridges told Anna Richey and Alla Chapples they wanted to stock their product two years ago, both girls breathed a sigh of relief.

Having registered their business, two chicks, in 2005, this was the first order for their pre-packaged free range liquid egg white.

They knew it was a strong business idea from the start. Egg Beaters, the biggest supplier of pre-packaged liquid egg white in the US, was turning over $93m a year and had a cult following amongst celebrities, sports stars and health fanatics due to its fat-free, low cholesterol consistency.

So when Richey realised no one was selling the product to UK supermarkets, she got Chapples on board and they were convinced it was a winner. But getting investors to buy into the idea was more difficult than they thought.

“It took us a long time to find funding because we had no experience in business or food. We had to revise our business plan several times and when we did get funding in January 2007, it was ten per cent of what we were originally looking for,” says Chapples, 28, who studied Economics at UCL, and looks after the financial side of the business.

By then, much of the leg work had been done. They had spent 2006 researching and sourcing their product, ringing egg white producers all over Europe and finding one to deliver what they needed; free range, small packs and minimum orders at a good price.

When the money came through, it went straight into branding and packaging their product, ready to introduce to supermarkets. But getting the attention of buyers was the next stumbling block. “Anna does all the sales and marketing and was calling buyers up to 50 times a day.

Once she got hold of them, they were usually interested and we’d try to book in a meeting. But it took a very long time.”

Today, things have moved on significantly. Their second round of funding came through this year, and two chicks is now stocked in selected stores of Sainsbury’s, Waitrose, Ocado, Booths in northern England, Dunnes Stores in Ireland, Selfridges, Whole Foods Market, and launching in Tesco’s next year. They were also chosen from over 1,800 businesses as finalists for the 2008 HSBC Start-Up Stars Awards.

But they still face challenges, not least raising awareness of their product on a miniscule marketing budget. “Setting up this business has been a lot harder than Anna and I anticipated. But we have huge drive and ambition, and we’re happy working day and night to make it succeed.”

Have you got a business idea? two chicks offer their advice on making it work.

DO…

Think long-term
No matter how great the idea, starting up a business takes longer than people anticipate. “Our product was the only one in the market so we thought it would be easy to launch, but it was still so hard. We grow every month but we still have a long way to go,” admits Chapples.

Be prepared to negotiate
A good business plan can transform an idea into reality. But in this economic market, with money harder to come by, it’s worth considering where cuts can be made in advance. Then, when interested investors do come along, the conversation can be more diverse and long-term.

Consider a good business partner
Staying upbeat can be difficult when success is taking longer than anticipated. A good business partner can be someone to bounce ideas off, share business passion and success with and someone who complements your skill set. “Calling the buyers several times a day? I just personally wouldn’t be able to do it. But Anna just kept on at them, she just wouldn’t give up.”

Enter awards
Awards recognition can generate PR opportunities, build awareness of your brand and help your business get taken more seriously. Research the awards in advance though, as some are better recognised than others.

DON’T…

Give up the day-job
Entrepreneurs often quit their jobs too quickly in order to concentrate on their start-up. But while passion and focus are essential, timing is also crucial. Chapples quit her tennis coaching job in 2006 because it was taking time away from the business. Three years on, she still doesn’t take a full salary and admits that keeping her job would have helped financially.

Shy away from being shameless
Chapples and Richey were dropping off samples of their product to celebrity chefs when they noticed Antony Worrell Thompson pulling out of his driveway. “We ran up to him, had a quick chat and I think he liked us for that,” says Chapples. They set up a meeting with Worrell Thompson and he has used their product in his restaurants, shops and TV shows ever since.

Be afraid to be jack of all trades
You might have started your career in one sector, but making an idea work means turning your hand to everything. As well as working across finance, media, marketing and sales, Chapples and Richey have spent hours at their distribution depot, re-distributing eggs from boxes of 18 into boxes of six, because that’s what the supermarkets wanted. “It’s all part of making it a success,” laughs Chapples.

For more information, visit www.twochicks.co.uk

By Barbara Walshe