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Profile: Design*Sponge

Reader, I am coming home. I’m somewhere in the air right now, winging my way back with tired little family in tow. I will have many things to share with you on Monday! Meanwhile, instead of Friday links, I am really happy to present one more Startup Story to close out the week.

I think Grace Bonney hardly needs an introduction if you are reading this blog, but just in case – Grace started Design*Sponge many years ago to chronicle her love of design and to champion small creative businesses. What you may not remember is that she also ran an online shop for a while, to directly link designers and products with her readers. I thought it would be interesting to have Grace talk about that business here, even though she has moved on to bigger and better things (like writing a book and touring in support of it very soon!) Have a great Labor Day weekend (if you are in the States) and thanks for sharing your story, Grace!

Photo by Lisa Warninger, urbanweedsblog.com

The Start

I never intended for Design*Sponge to be a business, so I think I really benefitted from letting it grow organically and never putting too much pressure on it to produce financially. The site was always supposed to be about my love for the design world and all of its makers, so I figured, as the site grew, if I expanded and invested in the site any further it would have to continue to serve the original goal.

 

 

I stayed pretty loosey goosey about the business until 2007, when I’d finally built up enough ad income (I started slowly adding ads on my own in late 2005 after a year of blogging.) I invested it in re-designing the site, hiring my first editors and starting an online shop to sell indie work and support charities I cared about. The shop was short-lived, but taught me a lot about how much I enjoyed finding a way to give back, so it lead to me launching the D*S Scholarship shortly after.

Unexpected Challenges

Well, I learned a lot from the D*S Shop. Editorially and sales-wise, it was a great success. I was thrilled that I was able to have some of my favorite designers (a different set every month) create limited-edition handmade work every month that sold out almost right away. I gave 90% of the money to the artists and the other 10% to charity. Sounds nice, right? I was really hell-bent on not making any money myself, I just wanted to provide this platform and not profit off it. That might have been fine had I not forgotten to take sales tax, income tax and customer service into account.

 

 

I forgot to charge sales tax and subtract profits AFTER putting aside money for income taxes (since I was technically collecting the money on the artists’ behalf) so I basically gave all the money away and then got hit with a HUGE tax bill. It was a nightmare. It didn’t dissuade me from non-profit work, but it taught me to hire an accountant and consult him before setting up any new projects where money would be exchanged.

It also taught me that I really hate customer service. Arguing with people about how handmade ceramics are one of a kind and won’t be EXACTLY like the picture really got draining. So I walked away learning what my strengths and weaknesses really were.

 

 

I also learned a big lesson from my early days of ad sales. I encountered a surprising amount of sexism (male advertisers who didn’t want to deal with me because I was a woman) and it ended up leading me to turn Rena’s original business owner’s meeting at her home into a large-scale Biz Ladies meetup across the country. I realized I wasn’t the only one dealing with issues like this and that the best way for me to overcome it was to educate as many women as possible about how to handle those issues and prevent them in the future.

Tips for Those Starting Out

I always live by “measure twice, cut once”. Write a business plan, hire an accountant and consult a lawyer before making big decisions. Going over the numbers and details before you take a big leap is always, always worth the time. If I had just been a little bit less hasty and eager to jump into projects feet-first I could have saved myself a lot of time, money and headaches. But sometimes passion kicks in and it’s hard to overcome that desire to just DO IT NOW. These days I force myself to tell at least one person (usually my managing editor, Amy) and see what their response is. If they hesitate, it usually helps me cool my jets and put my business hat back on and think about the reality of an idea.

 

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Comments
4 Responses to “Profile: Design*Sponge”
  1. Bri Land says:

    Such GREAT advice! I can completely relate to “measure twice, cut once.” Sometimes when you think you have this wonderful idea and are completely passionate about getting it going, you can ignore the reality of the project. Thanks!

  2. Georgina says:

    thank-you so much for this post – it is both fascinating and comforting to small start-ups like me! i am grateful for the honest reflection which helps us put things in perspective. cheers.

  3. Donna says:

    Such a treat, since I am a design*sponge fan, to hear how you got started. And even more helpful, since I have just started selling online again and am experimenting with my first blog, to hopefully learn from some of the pitfalls you overcame. Kudos!!!

  4. suzanne says:

    Thank you for sharing this. So nice to hear Grace’s perspective!

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