The Working World

Lemonade Maker: Lori Chalmers, Downturn Designer

At the end of 2007, Lori Chalmers was laid off from her main graphic design gig with one day’s notice. Scrambling for income, she took a shot at turning her hobby—designing and making handbags—into a business. The 30-year-old talked to us about how she created her Toronto-based fashion company, Cha Cha, from scratch.

One day?
Well, as a freelance you have no protection, no severance, nothing.

I came home and had locked myself out of my apt. So I was waiting for my landlord, thinking about how I could make some money quickly. I had been making bags for my friends and for myself. It was my one skill.

When did you start making bags?
In college — I went back to school when I was 23, and my party days were kind of over by then. I had a lot of free times on weekends. So I’d sew. I’d go to second-hand stores and buy leather jackets and skirts and take them apart and make new things. I learned from trial and error.

Had you thought before about turning it into a business?
My mom would always say, It would be so great if you could do this for a living, it’s what you love to do! I agreed but I said I could never do it. I thought it would take a lot more money. I didn’t know as one person you could do this.

But the Internet has helped tremendously. I was able to set up my own shop online, take care of my own shop. I could do everything myself — I didn’t have to rely on retail stores. That’s been what’s let me survive and thrive.

What was the first thing you did?
At about the same time I had done a craft show and was sitting next to a girl who told me about Etsy. I went home and looked it up. Etsy lets you start a shop with basically nothing. It’s a great starting point for someone. I don’t know if I would say quit your job and sell on Etsy, but it’s a great way to try it ut and make some money. I didn’t have money for a web site so I started a blog. I did all my own press releases.

There’s a lot you can do when you’re broke and creative. Money does make it easier, but being broke doesn’t make it impossible.

“There’s a lot you can do when you’re broke and creative.”

Are you making a living from Cha Cha now?
Yes. I’ve been doing it full-time for just over a year.

How long did it take to get to that point?
I feel like I’ve been really fortunate. Within a short while of being on Etsy I became a featured seller and got on the first page, which brought me a lot of customers. But it’s not an overnight thing at all. My background is graphic design, which is incredibly helpful, but it’s not a business background. In the beginning I would make something and I couldn’t make anything else until I sold something to make some money.

Your designs are pretty affordable; I imagine that’s helped in this environment?
Because I’m direct sales I’m able to keep prices a bit more reasonable. I don’t think as a new brand you can come out right now trying to sell $800 bags and make decent money. The people who send a lot of money on handbags are generally comfortable with their brand and don’t want to try something new. But if you offer something at $200 that’s a risk they’re willing to take.

What have you learned that might help budding entrepreneurs?
The biggest thing that I would suggest to people is planning. Set goals—even if it’s monthly goals, sales goals or things you want to accomplish. I didn’t have that opportunity because of my situation — I just had to jump in and try to make money. I could have done better if I’d had a planned.

Do you think you would have taken this leap eventually anyway?
I don’t know if I would have. You get comfortable in your job if you don’t love it. Sometimes you need to be forced into a situation, even if its not comfortable right away. There’s a chance I would still be doing random freelance jobs. Being laid off is bad but it gave me the time to focus on this. It’s hard to start a business and work a full-time job as well.

Would you ever go back to graphic design?
Not unless I have to, no.

Tags: business, entrepreneur, layoffs, Lemonade Makers, new entrepreneurs, style, The Working World