Friederike Kuehn is the owner of the small accessories business RIKKA. After wasting money through unproductive partnerships with large businesses for manufacturing and marketing, Friederike switched to working solely with small and local businesses. Here’s what happened.
When starting RIKKA in 2022, I was full of excitement to bring my vision to everyone in Australia. Being a mum juggling three kids I was excited to have found a product that fit in my life in many ways. I wanted everyone to find out about the practical and stylish solution that allows us to go hands-free while having our phone secure and close by: the crossbody phone strap.
When sourcing a manufacturer for my phone strap, I went with a big company promising everything I wanted: the perfect fit, quality products and a smooth manufacturing process. It was expensive, but I was happy to invest to get it right.
Working with large companies
Unfortunately, I did not have a good experience with the large manufacturing company.
The person assigned to me as my point of contact changed four times in three months causing huge communication problems. Each time, I had to start almost from scratch, explaining my vision for RIKKA.
The timeline blew out, and in the end, I called it quits. This came with a significant loss in time, and cash, as this business took all the money I paid upfront.
The next step? Advertising. I thought a big company = experience. Signing on with a large advertising business, I overlooked their aggressive advertising style and their promise of results that seemed too good to be true. I assumed bigger companies had more resources and therefore could quickly deliver the results I was after.
It was a huge investment as I had to sign a long-term agreement. The company promised me a minimum revenue that I would see each month.
After the first two months didn’t go as planned, I was still assured that things would take a bit more time and once we hit the right target, we would reach the promised results. This never happened. Once again, I paid for this mistake with lost time and money. The larger operations meant my brand didn’t receive the attention and a tailored strategy.
A harsh realisation
Both experiences made me rethink my strategy of using big brands. From then on, I decided to start using small, and if possible, local businesses.
The difference was night and day! Small businesses genuinely cared about the success of my business and took the time to understand my brand and goals.
I found another manufacturer that was a much better fit for me, and finally the day came to launch my business and show Australia my game-changing accessory.
The benefits of working with other SMEs
Small companies are a lot more flexible with their approach and it’s easier to adjust timelines and strategies. The open communication feels more like a partnership than a transaction, with a lot of attention to detail. The investment is mutual as our success directly impacts theirs.
Working with independent small businesses such as photographers, graphic designers, web developers, and social media managers has allowed my business to shape an authentic brand instead of the one-size-fits-all approach from larger brands.
It has also helped me to increase my network with other small businesses leading to new collaborations and brand awareness.
I initially held reservations about the perceived lack of experience with small businesses. But in my experience, they have a high level of communication and commitment to make the collaboration successful. You cannot compare the passion and genuine care of a small business with some larger brands.
Obviously, it’s different for everyone. Large brands might work well for some, and others don’t see the value in smaller businesses. The important point is to do your research and ask a lot of questions. If the business is happy to take its time to understand your business, it might be the right fit.
