They say that what you don’t know won’t hurt you, or in Pazit Benezri’s case, stifle her entrepreneurial spirit.
She founded LulyBoo in 2008 after creating a portable baby bassinet her infant son preferred to nap in. The innovative product, which folds into a backpack, got thumbs-ups from retail buyers from the get-go, but it took another five years and numerous lessons learned for the Lake Forest-based business to become profitable.
“I’m glad nobody told me how long it takes to really have the item in the market, and for the business to start to make money,” said Benezri, chief executive. “If I knew from the beginning … I would probably shut (everything) off and not do the business. I really threw myself out there, step by step, and got excited from every little success.”
Her patience—or naiveté—paid off. LulyBoo products are now sold at every major retailer, including Wal-Mart, Target Corp., Amazon.com, buybuy Baby and Geoffrey LLC’s Babies R Us. The private company doesn’t disclose its financials, but Benezri said sales have doubled every year since its inception. The LulyBoo “lounges” range from $39 to $79, including LulyZoo, a toddler version of the product. Next month, it plans to introduce a travel line, ModCot, that will bring its product offering to about 20. The “carrycot” weighs less than 4 pounds and is “designed to make travel easy for parents while providing comfort for baby anywhere, any time.”
LulyBoo shares an office building and warehouse space with Imex Vision LLC, a paper food and beverage packaging company that Benezri’s husband, Nati, founded in 2006. LulyBoo employs 15, including a China office that oversees sourcing and manufacturing.
“We are making a high-end product that needs to be 100% clean,” she said. “The seams should be perfect, so we need someone there in the factory.”
Startup Days
Benezri contracted Classic Quilting in Santa Ana to manufacture the inaugural line, which debuted in 2009 at the ABC Kids Expo in Las Vegas. The tradeshow netted zero sales but plenty of feedback.
“I didn’t sell anything, but I learned so much,” she said, adding that she had the chance to size up the competition and talk to retailers who wanted to see a variety of designs, and thought her product was overpriced.
“I tried to make the item here in the U.S., and then I realized that it’s just not going to work because” the cost of the production left her only breaking even instead of making a profit.
Benezri bootstrapped the company and got technical support from the Orange County chapter of SCORE, a nonprofit association whose volunteers—usually retired executives—help small businesses get off the ground. Mentors worked with her on “marketing, financing, accounting, insurance, sales pitches, operations, social media strategies and trademark/patent decisions.”
Benezri, aside from retailers’ buyers and the former business pros, also tuned in to what other moms and parenting bloggers were saying about her products.
“The market changed since I started,” she said. “People moved to shop more online, to read product reviews, to follow bloggers and their recommendations. We are not doing a lot of advertising. Most of the sales are coming from word-of-mouth recommendations.”
LulyBoo is “working with a very big group of moms” in Orange County, Los Angeles and San Diego who are invited to test the products and brainstorm with Benezri’s team on “how to make it better, what’s missing, is the (packaging) message clear, how much would you pay for this item.”
“You need to think about the customer you are selling to,” she said. “Ask people, ‘Where are you reading reviews? What makes you buy or not buy a specific item?’ and really go with that. I really believe that your customers know what they are looking for.”
Operations
LulyBoo values digital feedback but doesn’t have its own e-commerce website—Benezri said she doesn’t want to compete with retailers.
She took her line overseas about two years ago to Turkey, Brazil, Mexico, Canada, and is about to enter Japan. Lessons learned from international expansion include finding the right distribution partner.
“Many contacted us, but we were really picky about choosing a very good one,” Benezri said. “It’s only going to work if they believe in the brand.”
The company is named after Benezri’s daughter, Meshi, now 14, whose nickname is Luly.
“We also tried to combine words for playtime and sleep time,” she said adding “Luly, as in lullaby, and Boo, like peekaboo.”
The Future
Benezri, despite challenges, still isn’t afraid to dream big.
“I want every mom in the market to know about the brand,” she said. “We are working hard and always thinking about the next step. My tip (for up and coming business owners) is don’t stay where you are. Think about where you want to be in a year or two, what items (you are selling) and start working toward it. If you are not growing in the business, I feel like you are going backwards. You need to be creative, and you need to invest in the business.”
Benezri has four children, including a 10-month-old boy. Being a female entrepreneur and a mom is “the best combination,” which gives her “the freedom to balance my schedule doing the two things I love: creating and being a parent. What more could I ask for?”
