Our own Jonathan Morello interviewed for Entrepreneur Exchange for Kickitdigital - Backstage Commerce

Posted on Jul 13, 2016

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This week in Entrepreneur Exchange I was lucky enough to talk to Jonathan Morello, Director of Corporate Development, President and Founder of Backstage Commerce inc. Backstage Commerce is an importer and manufacturer of hair beauty goods. Jonathan had some really interesting things to say that anyone considering the importation business — or entrepreneurship — should know about.

He talked about how being an importer requires an in-depth knowledge of world politics and economics. To get this kind of knowledge, Jonathan suggests that experience and real-life involvement is the way to go. He’s learnt about world affairs by being in the business, and if I were interested in jumping into importing, I would seek out a mentor very much like him.

The bulk of the interview wasn’t about importing, though. We talked about what it takes to be an entrepreneur. I often ask interviewees what advice they’d have for someone who’s just starting out, and I can say unreservedly that Jonathan’s advice has been some of the best so far. It rings true — the struggle, the risk, the thrill of it, and the (false) glory. If you’re an entrepreneur,read this advice.

What do you do?

Our purpose in the marketplace is to sell products with value propositions. What we sell is either state-of-the-art or a better deal than what our competitors are selling, and that’s why we have an edge.

How did Backstage Commerce start out?

In July 2010, I started it out of the ashes of a previous company I had been a part of in university. I’d been working at a boutique importer for four years so I knew the business. By owning my own company I was able to do things in the way I felt would be most profitable; for example, I made it easier to set up recurring business. In October we had our first sale, and we’re now celebrating our 3rd anniversary of that event and are on route to exceeding 10M in sales for our next term.

When I jumped into the importation/distribution business, it was something that I was familiar with. There was good will there between the buyers and I. Experience is priceless when you’re entering a new venture.

What difficulties do you run into in importing?

Whether you’re importing from Asia, Europe, South America or anywhere else, the goods are subject to various tariffs and import/export laws. For goods coming into Canada, it’s important to match the compliances and find out if they’re electronically approved or if they comply with government electrical standards such as CETL or CSA.

It’s also important to understand whether you’re going to be able to establish a trade relationship based on the economic stability of a foreign country. There’s a certain level of risk that comes with international relationships. For instance, a foreign government could make a trade overnight that would cause the economy to collapse, meaning no work for the local people and no products for you. Knowing about politics in this case isn’t academic. You just have to be in the business and be subject to these forces to really know about them.

What’s fulfilling about working in the hair beauty industry?

In order to be successful we have to be ahead of the market and willing to say what will be the next big thing. It’s all about the salon being happy, and it’s fulfilling to know that the product wouldn’t be there without our work. Seeing the whole process take place — everything from our initial product research to seeing that product in salons — is what makes it all worthwhile.

What advice would you have for an entrepreneur who’s just starting out?

The onus is on you when you own a business. It’s a part of the mindset, and usually entrepreneurs are young with no dependents and not much to lose. It’s a luxury to be able to take part in this risky choice, and you have to go into it with confidence.

My advice to entrepreneurs would be to start out by being extremely lean. This is different from being cheap. Start out with the quick and dirty version of your final product. Have a strategy and build up from there. When you’re just starting out, every dollar that you spend on business — in finance, marketing, sales and product development — needs to contribute in an extremely valuable way to growth. The nice things that come from success, like having a nice office or a receptionist, will come later.

There’s a fast food identity that’s become associated with being a serial entrepreneur, and a culture that fosters entrepreneurship. In reality, entrepreneurs are a rare breed. Owning a business is not for everyone. There’s prestige in being able to say “I’m an entrepreneur” and there’s a lot of money that’s being thrown around in the name of this prestige, but the ideal is a lot different from what it’s like being in the trenches. Most entrepreneurs would want to throw up on hearing the phrase “start up” because it’s not a glamorous process. There’s a lot of sacrifice and stress.

Why would someone become an entrepreneur, then?

For fiscal reasons, perhaps. There is potential to earn more revenue while on your own. You have to be keen on getting it done, though, and to see money as more of a byproduct of your hard work. The main reason, though, is that you’re able to say to yourself “I want to be working here.” You can’t over-think it. The first step is having a good idea. The rest is execution, and enjoying the intellectual challenge of this is important.

Entrepreneurship has a lot to do with fear. A part of the cognitive process of being an entrepreneur is having so much confidence that fear becomes eclipsed and overcome. Through confidence, entrepreneurs become blissfully oblivious to the amount of risk that start-ups take. The person who studies risk focuses on playing it safe — after all, this is the rational choice to make. An entrepreneur, on the other hand, will use his or her confidence to face risks and succeed even when, to the non-entrepreneur, the chances seems overwhelmingly slim.

View Interview at www.kickitdigital.com