Even Babylicious needs an Equity Fingerprint!

Boots GroupImage via WikipediaBabylicious provides healthy food for babies and kids all in special size containers. It saves the parents all the cooking and preparation time which used to bring the family together – now just microwave!

Production is outsourced with the only problem being to make sure the recipes scale from the home to 200 kilo batch production. Routes to market are via Waitrose and Boots.
Sally Preston started the business with family funds of £75,000 and two years later she raised new money from private investor. She says that she took no pay for the first three years and says that she is comfortable with her shareholding.

It is similar to Innocent drinks but they started with a team of three Cambridge graduates and a £250k investment which left four equal shareholders. Innocent also sub-contracts all the manufacture and concentrates on the marketing and selling but the Innocent drinks appeal to a much larger market and not cash-strapped young families.

Babylicious seems to have the same problem as Cobra Beer – working on fine margins in competitive markets.

Equity Fingerprint, the business plan resource, shows that multiple founders with multiple rounds of resources (people and cash) is an easier way to start a business than the lone founder.

One intriguing part of the Babylicious story is that Preston had to spend £34,000 to enforce her trademark as someone tried the equivalent of cybersquatting. It is not only the cash but so much time from a lone founder. Is Babylicious such a good name?

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