Angela McGhee had a good problem – a growing business.
McGhee contacted the Arkansas Small Business and Technology Development Center for help expanding her company, Definitive Formulations, LLC.
ASBTDC business consultants and specialists advised McGhee as she scaled up her business from a home-based operation to a commercial location in Conway where she could manufacture products on a larger scale.
The transition from a part-time home-based business to a dedicated manufacturing facility was “extremely stressful,” said McGhee. “I found many things I didn’t know.”
“I’m a solopreneur and felt like I was drowning without subject matter resources, so I was glad to find you all.”
Pandemic Ups Demand
A chemist, she develops recipes for private-label hair care products sold at salons and spas worldwide. In addition to custom product formulations, her company also handles the packaging, shipping, and distribution.
“It’s a unique blend of passion and science. The passion is for understanding the nuances of ingredients and the science or learning how to build a library of ingredients, but the magic is in being able to connect with a client and be their translator,” she said. “It’s different from developing your own products where you have to have your own connection to the marketplace and ride the wave of customer knowledge and mythology.”
McGhee started Definitive in 2004 as a side business. In 2007, she moved to Conway. She didn’t turn her attention to the business full-time until 2020. “It was very part-time, as I focused primarily on my family. But over the years, I learned the behavior and properties of so many ingredients,” she said.
Since the COVID pandemic, demand for her services has increased. She’s also experienced the frustration of supply chain disruptions.
“It increased my business, because the salon shutdowns caused my clients to rely solely on product sales to have income,” she said, but shipping delays make it difficult to keep packaging in stock.
ASBTDC Resources ‘Extremely Valuable’
McGhee’s ASBTDC consultants assisted her with financial projections and analysis, applications for COVID funding programs, and answers to operations questions.
“The main benefit I received was to develop the discipline to manage the details of my financials every month. It now only takes me about 45 minutes, and I can see trends and where corrections are needed,” she said.
ASBTDC also connected McGhee with three of its business specialists with different subject matter expertise.
Glenda Caton advised her about hiring employees, including preparing job descriptions, new-hire paper work, and a company handbook. Katherine Daniels helped McGhee with growth planning and brand development. Attorney Chad Cumming of Gill Ragon Owen, P.A. covered legal matters.
She called the experts’ no-cost advice “absolutely important.”
“Glenda helped me scope what I need to consider as I prepare for hiring, as well as providing resources. Katherine was so instrumental in helping me revamp my website and improve my customer journey. Chad helped me directionally understand the structural changes I will make to my business as I grow. As a whole, all the resources were extremely valuable,” McGhee said.
Now, with help from ASBTDC’s Nicolas Mayerhoeffer, McGhee is focused on developing a pricing calculator for her customers. She realizes as a B2B company, Definitive Formulations’ continued growth depends on her customers’ success.
“My long-term goal is to identify the tips, tools, and resources needed for my clients to build a successful product line, then develop and implement those for their long-term success,” she said.