Global Entrepreneurship Week Day 1

It is day 1 of Global Entrepreneurship Week! Throughout the week, South Eastern Regional College (SERC) will host a week of celebrating entrepreneurs.

The Enterprise and Entrepreneurship Team recently chatted to Helen McFarlane about her company Hallowed Grounds which was founded during SERC’s Project Based Learning Expo in September 2021. You can watch the interview below.

Next up we have an interview with Adam Murphy about his business Shnuggle.

What is your business/product/service?

My name is Adam Murphy, and together with my wife, Sinead we started a baby products company called Shnuggle. Founded in 2009, with our first product, a Modern Moses Basket, the business has grown from being run in our garage to a multi-million pound global business.

Can you tell us a bit about your background and how you came to run your own business?

We became first-time parents in 2007 and as all parents do, we shopped around for every possible item that we would need for our baby. We became disheartened by the lack of good quality products in many areas – which is how the idea for a Modern Moses Basket came about. 

As my background is product design, I drew up some designs and by the time our second child was born in 2009, we decided to start a business to produce the Shnuggle Basket - the first non-wicker, silent and hypoallergenic basket. 

We conducted loads of market research, and when we were certain there was a demand for our idea, we took the plunge.  Borrowing £25k from the bank for tooling, we started production in 2010 and haven’t looked back since.  We now have about 20 products that we sell in over 40 countries, with a team of around 17 people working right here in County Down.

What has been your biggest success to date?

Our second product is our most successful – the Shnuggle Baby Bath. It came from bathing our son in the sink because there weren’t any good supportive bath tubs around.  Our new design was compact enough to fit in a sink but offered support for the baby as they grow.  The Shnuggle bath created a new category in bath time and is now one of the best selling baby baths in the UK, South Korea and Taiwan.

Have you had any mishaps along the way? How did you overcome them?

Ironically, the first version of the Shnuggle bath was in an interesting new material called expanded polypropylene.  This was the version that we launched, and it did OK – but we got a lot of feedback, that while customers loved the design, they didn’t like the material. So, within 6 months of launch, we redesigned the product to be injection moulded instead and the new version was a hit!  If we didn’t listen to our customers and make a change, we may not have had the success we have had with this product.

What motivates you to keep performing at your best?

I am motivated by working with our team to design and develop new products every year. By continually innovating and not standing still, our business will keep growing and more parents around the world can enjoy the Shnuggle range.

What have you learnt in running a business that you wish you had known before you started?

When we started the business, we put our own money in (around £50k) and basically worked for free for about 3 years.  Only after getting investment in the business, could we start paying back our loans and pay ourselves a salary.  We had no idea it would take so long to create enough profit to earn a wage. Many businesses seek funding or investment at the start of their journey, which can ease the struggles of the early days of a start-up.

What key pieces of advice would you give to students who are interested in setting up a business?

Research your market, make sure there is a demand for what you propose to do, and that you have a point of difference.  What makes you stand out from the rest? 

Once you know your market and your customer and are confident there is a place for you – then write a business plan – one that details exactly what you want to achieve in the next 3 years.

Do you have any advice regarding finance and funding?

To get finance or investment, you will need that business plan I mentioned above. It should include your research; details of your product; details of customers and markets; pricing and margins; supply chain & logistics details; staffing requirements – all this along with a minimum 3-year financial forecast. If this all stands up as a compelling story and the financials add up, there are plenty of private investors out there ready to invest in your business.

How has Covid-19 impacted your business, and how have you overcome this?

Covid-19 impacted our business in many ways, but not all of them bad.  We slowed down during the worst of the pandemic and focussed on keeping the business alive and keeping everyone in a job.  We expected a 20% dip in revenues but grew 5% - all thanks to the dedication of our team.  And while working from home quickly became the norm for most of us, it has made us realise that we can be more flexible with our working arrangements in the future – and now have a 2-day in the office policy – which gives people permanent flexibility in their work-life integration.

Any final thoughts?

Starting out can be difficult and lonely – but the real benefits come when you get some people involved.  Good advice can be priceless and will help you to avoid costly mistakes – while also fast track your plans to start-up and grow.

Check back tomorrow for more Global Entrepreneurship Week content.

Visit www.serc.ac.uk to unlock your future #BetterOffAtSERC.