THEIR BRAVE NEW WORLD
PARENTS TAHLIA AND SEMISI HUTCHISON WERE HORRIFIED BY HOW MANY NAPPIES THEY WERE SENDING TO LANDFILL. SO THEY CAME UP WITH A REALLY BRAVE BUSINESS PLAN INVOLVING FULLY COMPOSTABLE NAPPIES – AND BUSINESS IS BOOMING.
Parents Tahlia and Semisi Hutchison were horrified by how many nappies they were sending to landfill. So they came up with a brave business plan involving fully compostable nappies.
It would be fair to say that Tahlia and Semisi Hutchison had never, ever thought of getting into the nappy business – let alone one with such eco-friendly credentials as Little & Brave.
However, they were both cut out to be entrepreneurs. In fact, Semisi takes his cues from his dad, who is still an entrepreneur at age 81!
Tahlia had a solid administration and education background and an honours degree in finance, which Semisi hails as an absolute godsend for their business’s cashflow management. It’s her rigorous approach to finances that’s kept their start-up business out of trouble, he admits.
Semisi’s background includes time spent as project manager for a venture capital company. His first taste of business ownership, and the lessons it brings, came via an aged-care provision company in Auckland.
The couple have two children and are expecting a third, but it was shortly after the birth of their first child that they began seeing the world through sustainable eyes – collecting soft plastics, composting food scraps and avoiding unnecessary packaging. Nevertheless, the bin was always full by the end of each week, with 90 percent of the waste (conventional) nappies.
At the end of one particularly long workday, Tahlia suggested they look at the possibility of marketing their own compostable nappies. After sleeping on the idea, Semisi agreed it was a great idea.
Searching the Internet they discovered a Tasmania-based company already manufacturing (in China) and marketing (in Tasmania and South Australia) fully compostable nappies. They immediately hit it off with the owner – a mother, scientist and entrepreneur – and purchased the rights for a number of countries, including New Zealand.
Business and marketing plans followed – “both proving to be completely wrong”, recalls Semisi. Then an investor came on board, adding to their own seed funds, and after 12 months of prepping and some coaching through the Icehouse Business Growth Centre, the product was launched at the Auckland Baby Show in August 2018.
The low margin-high volume FMCG sector was completely new territory to Tahlia and Semisi. “But it’s not just a profit thing,” says Semisi. “We genuinely wanted to reduce the amount of rubbish going to landfill. We want to ensure we provide a practical, sustainable option for ordinary Kiwis to carry on living the way they have been.
“You can’t force change on people,” explains Semisi. “You must offer them easy options that work.”
Little & Brave secured one of New Zealand’s two major supermarket chains reasonably quickly, and on generous terms. In fact they’d been approached by both chains very early on.
“We’d heard all sorts of horror stories about the supermarket chains, but in our experience they’ve been very honourable and up-front,” says Semisi, adding that it helps to go in with your eyes wide open.
The product’s point of difference is that it is New Zealand’s most compostable and only fully commercially-compostable nappy. “Send
it to us, at any of our drop-off locations and we’ll compost the lot,” says Semisi. By June, he predicted they would have 22 locations around Auckland, and growing.
The composting facility is based at Penrose where Semisi says New Zealand’s (voluntary) composting standard is frequently exceeded. The nappies are turned into a bulk soil conditioner for sale and a nutrient-dense potting mix – half of which is donated to native tree replanting schemes.
So far the business has been going to plan. Tahlia and Semisi had sufficient funds to get over that infamous ‘six-month hump’ and they’ve been approached by private investors wanting to invest “generous amounts of cash if the numbers stack up”.
However, the couple are wary of bringing in new active partners just yet. With their corporate backgrounds they know that the more people involved in strategic decision-making, the slower the response. “We’ve avoided having a board because we already have a strong group of informed people we go to for advice,” explains Semisi. “People who have a lot more business experience than Tahlia and I.”
LESSONS AND ADVICE
In business, no lesson is a bad lesson, says Semisi. “As long as you learn from it.”
He admits he’s had to acknowledge that he doesn’t know everything about business and it’s OK to reach out to others for help. Better to get expert advice than be “bloody-minded” about sorting it yourself and waste time.
He says they’ve both had to recognise this. “We both have strong personalities and want things to go ‘our way’. So there have been some colourful discussions at time, on who’s more right!”
His advice to other young businesses is to keep costs down and don’t waste money. It’s the little expenditures that add up. And one of the keys to success in retail is to buy low. “If you have to increase your buy volume or unit-price to get a better discount, and can afford it – then do it.”
So what does the future hold for Little & Brave?
Semisi says the plan is to separate the compost facility from the brand, establish additional brands to target different markets, and in three years’ time have a substantial market share in New Zealand – at least equal to competing brand Rascal + Friends.
Customer feedback has been overwhelmingly positive, he says.
The couple are also excited about other planned developments in the pipeline involving overseas markets – a case of ‘watch this space’, says Semisi.
He says while there have been difficult times along the business journey – including a lot of time away from their children, relying on paid nannies and family support – they’ve always believed in it 100 percent.
Which leads to another piece of advice: “Don’t go into business unless you believe in yourself 100 percent.”
It’s tough in business; it takes guts and sacrifice, Semisi says. “You’ll be under attack from your competition too. But it is all worth it. There are many victories, both big and small, along the way.” He’s also proud of the fact that “random business contacts” have sought to make contact because of their “integrity and values, honesty and transparency”.
Along with bravery, they’re qualities that will take you a long way in any business.
“In business, no lesson is a bad lesson. As long as you learn from it.”