Skills and a network
Four years ago, Lin Yi-chun found herself more than NT$10 million in debt after her husband's financial consulting firm went bankrupt. Lin, who was then working for a company that supplied materials to ophthalmologists and opticians, became very depressed. Overwhelmed by the twin burdens of debt and a newborn second child, she came very close to throwing herself from her balcony. Fortunately, a timely phone call from her mother and the crying of her child snapped her out of her suicidal mood.
Then, a doctor friend of Lin's was diagnosed with cancer, and Lin began looking for natural organic products that would relieve the physical and mental anguish of her friend's chemotherapy. She spent evenings after work doing online research, seeking information on natural herbal supplements. Drawing on the knowledge and network she had acquired through more than a decade of work in the medical equipment field, she finally discovered Juice Beauty, a line of organic products from the US that includes ginkgo tea, chamomile shower gel, and rose-essence shampoo.
Two years ago, after a year of negotiation, Lin acquired distribution rights. With NT$200,000 borrowed from friends and family, she established her company, made her younger sister president, and took charge of training the sales staff. Lin targeted spas and salons, and watched as sales exploded from just over NT$300,000 per month to NT$1 million per month in just one year. The company now has seven employees and paid-in capital of NT$5 million.
But it is a rare thing indeed for a micro-enterprise such as Lin's to become profitable in just two years.
Stella Chiang, who left a position as a designer at a local tech company two years ago, nearly lost the use of a hand producing designs on deadline on her computer. "If I put pressure on my hand by lying on it in my sleep, it felt both numb and hot, like it had been stuck in a 200°C oven," she says. "I woke up in pain every day and developed a serious sleep phobia. Even physical therapy didn't help." In fact, it didn't begin to improve until a friend got her started doing qigong.
Having suffered through this bout of carpal tunnel syndrome, Chiang decided she no longer wanted her life to be like the designs she produced--constantly being "fixed"--and left her job with no regrets. She began taking business administration classes at night and thinking about what to do next. She considered a number of possible ventures, including a steamed dumpling stand, a juice bar, a combination coffee and book-rental shop, and an Italian restaurant, but rejected each because the initial investment was too high, the risk was too great, recouping the initial investment would take took long, or because she lacked the necessary skills.
Chiang finally found inspiration in a Korean soap opera. A lover of kimchi, she learned that the spicy side dish had become popular at the tables of ordinary families, and that it had health benefits as well. Chiang, who knew how to make pickled radishes and Japanese-style pickled cabbage, found a friend who could make kimchi and began selling jars of her own healthy kimchi produced without food dyes, sweeteners or preservatives.
But the greatest challenge entrepreneurs typically face isn't making a product, it's finding a market.
Though Chiang's 200-some night-school classmates were loyal customers, kimchi priced at NT$150 per jar is not something Taiwanese eat every day and Chang's classmates consumed theirs slowly. Forced to seek out new customers, she swallowed her pride and began calling companies who advertised in the Yellow Pages, sending them free samples with an order form. Happily for her, half of them ended up placing orders.
But even with her go-getter attitude, her sales so far amount to only NT$50,000 per month, leaving her with monthly profits of just over NT$10,000. Though she is single and has few expenses, Chiang is under a great deal of pressure. A supermarket has expressed interest in buying her product, but the capital-starved Chiang is unsure how to manage the slotting fees, deposits, and the need to handle inventory and returns that would accompany such a big step.
In recent years, Taiwan's women have been starting businesses in record numbers. Breakfast stands, salons, knick-knack stores and flower shops... seemingly everywhere we turn these days, we see women succeeding in business.