#teadough

Over the past few months, many have noted my posts about teadough – the Edinburgh-based doughnut company I joined at 3 Day Startup – on Facebook, Twitter and LinkedIn. So this week, as we celebrate the launch of our new product, the Original Doughnut Kit, I thought I’d share our story, of how I joined the brother and sister team and, together, took an idea for an iPad Recipe app and turned it into the first make-your-own doughnut kit, just in time for Christmas.

3 Day Startup: It All Started with an App The last thing you would expect of a weekend which started out with sketches for an iPad app is a make-your-own doughnut kit. However, as we learnt at 3 Day Startup, pivoting to meet the needs of consumers is key if you are to win over potential consumers and make your mark.

After pitching our ideas for businesses and products (you can find my idea for a Student Finance Platform here) to seventy students and staff from around the University, I joined the teadough team who’s idea was to share their passion for doughnuts, inspired by their great(x9)-grandmother who invented the doughnut in 1803, with the world through a simple iPad application. The application was to offer recipes, inspired by the original British doughnut, for enthusiasts to make at home.

As the weekend progressed, however, we discovered that our target market, including many iPhone and iPad users, had no interest in another recipe app, many noting that BBC Good Food was their preferred source for recipes (market research is key, and the opening of Edinburgh’s Apple Store during that weekend helped in gaining easy access to our target market). So, we posed the question: how could we share our doughnuts with the world?

The answer: the Original Doughnut Kit. All-in-one baking kits are increasingly popular in the UK and abroad, with simple biscuit and muffin ingredient jars selling for upwards of £15 and more complicated kits, such as make-your-own cheese and fudge, selling for £30 and above. We noted, however, that doughnuts had not been developed into such a product, in part due to the common use of a deep-fat fryer. So, within twenty-four hours, our team of just three (we started the weekend with six) developed the first prototype of what is now a finished product, just in time for a first pitch in front of investors and business experts at which we secured our first three orders (all online through our new website, also assembled in a weekend) but, more importantly, received some great feedback for developing the product further.

Taking it Further It was very clear, after our first pitch at 3 Day Startup, that we had developed a popular idea but not a finished product which many would buy. Feedback received from our first pitch pointed out a number of flaws in the prototype; £15 was not seen as affordable despite many similar products retailing for more, the use of Kilner Jars for storing ingredients was increasing costs, both in terms of units produced and delivery, the original box – printed and hand-folded from a library printout – was by no means suitable and we needed to decide on the exact flavour of the doughnuts as well as the inclusion of fresh ingredients like butter and eggs.

As any entrepreneur will tell you, however, this is all part of the research and development involved in launching a new product. Richard Branson sums up some of our thinking, saying “Don’t think what’s the cheapest way to do it or what’s the fastest way to do it…think ‘what’s the most amazing way to do it.”

After 3 Day Startup, our focus turned to putting a professional finish on our product, addressing the feedback of our first pitching panel, the demands of our potential customers (many of whom were students with a sweet tooth but a low budget) while ensuring that we didn’t compromise on our wish-lists for the kit.

As October and November passed by, the Original Doughnut Kit changed quite substantially: we replaced our hefty, white box with a streamlined, sustainable brown Vegware box with built-in handle, Kilner jars were replaced with cheaper equivalents and finally heat-sealed plastic bags, the metal cupcake tray was replaced with a set of larger and taller silicon cases. The recipe changed a number of times too, in part due to a trip to Costco which threw a number of new ingredient options our way (like Caramel sauce – not adopted due to its sweetness) and denied us the chance to include others.

The first two prototypes, produced in November, were tested internally with Hannah testing one set at a Power of Youth event and me the other, over a weekend with my grandparents. Again, the prototype testing revealed some flaws in our product’s design although many of these now focused on the recipe itself. Oven times varied dramatically, doughnuts were dry, the recipe wasn’t clear. These were all resolved, one by one, as the Christmas rush – something we were keen to capitalise on – approached.

The company also took advantage of a number of other opportunities presented to us during the period. Hannah and Arthur attended a doughnut course with the Edinburgh School of Food & Wine, an opportunity to explore the recipe further and discuss the implications of providing dry ingredients to customers. Arthur was offered the chance to discuss our product with food nutritional experts, something of a legal requirement (I, for one, am still trying to identify which ones apply to us).

Pitching to Investors Today, there seems to be a great deal of debate as to whether startup capital is useful or not. Tim Berry writes on Entrepreneur.com that “Service businesses tend to need a lot less capital than product businesses” but I would argue that, for teadough’s Original Doughnut Kit, we needed no startup capital at all.

The reason for this was our initial distribution network – eCommerce. As consumers purchased the kit online, we had access to the funds to produce each kit, before we started to produce them, promising consumers a turnaround of just a few days. The only benefit for us of using startup capital is that of economies of scale; startup capital would allow teadough to buy ingredients in bulk, reducing the cost of each unit produced, and increasing profits per unit.

Regardless of this fact, we believe that pitching is a great way to collect feedback on a product or service (as we discovered at 3 Day Startup), a chance to network with similar-minded business owners and investors and, at least at the University of Edinburgh, the opportunity to win some additional funding (free startup capital).

We first pitched the Original Doughnut Kit at the Santander Pitching Competition finals in late November, offering a number of tempting, free sample doughnuts, to show off the product to both the judges and the assembled audience. While we didn’t win the competition (interestingly, it was won by two other 3 Day Startup attendees), it offered more feedback on our product. Again, the price of the product was called into question (this time we’d pitched it at £12.99) and there seemed to be general confusion as to why we were called teadough given a lack of tea.

Since then, Arthur has continued on the pitching front, presenting the company and product to panels at FOUNDER.org and Angels Den at the Scottish Business Exhibition.

The Final Product: The Original Doughnut Kit December arrived and so does the final part of my teadough story so far. As the semester wound to an end, we redesigned our packaging designs to reflect the new Vegware boxes, recipe cards were redeveloped to suit and the first batches of ingredients were produced. Teabags were acquired too, adding a nice, sophisticated touch to the product while also saving us from any brand inconsistency in the future.

Preorders launched on our website and, much to my delight, we sold at a rate of knots online. Hannah and Arthur also took the product to the University’s Christmas market where it went down a treat. And we’ve been lucky enough to enlist the services of Campfire, an Edinburgh-based video production company run by a friend of Hannah and Arthur’s, who produced a great ad for us (you can view it here), playing on the company’s history and our new product.

A quick read of my family’s Christmas letter would suggest that there were very few highlights for me in 2014, however, I’d argue that they were just trying to save space given the holes my father’s photocopier decided to punch in the side of each page. For me, 2014 has been an amazing year, full of adventures, exciting projects and lots of hard work. I’d like to share one or two of my highlights with you.

Third Year in Edinburgh Time flies when you’re having fun and there is so much going on in Edinburgh that the years just flash before your eyes. My year as a Resident Assistant came to an end (I wouldn’t recommend trying it) as did my membership of Bedlam Theatre where I was secretary and producer of The Improverts. I can’t say I miss the politics of it all, nor the chaos of producing and I keep in touch with it all thanks to Lauren, my flatmate who is still a flatmate.

Third year also presented me with the chance to work for the University (it’s strange but revealing to see things from the other angle) as an intern in their accounting team which kept me in town during the summer, eating copious amounts of delicious fudge from The Fudge Shop where Eve worked and experiencing the chaos which is the Edinburgh Festival Fringe. Unfortunately, we didn’t get around to seeing very much but the Loud Poets and Private Peaceful, both of which perform every year, are certainly recommended.

Since all the tourists left town, and on the rare occasion that I’ve actually been in town (more on that later), I’ve been sitting down with various project teams, tackling the challenge which is third year while also enjoying the rare catch-up with friends or a walk up Arthur’s Seat.

Gin & Tonic Productions Limited Without a doubt, the biggest project of 2014 was producing Hamlet at the Brighton and Edinburgh Fringe Festivals during the summer to great acclaim. Although I have now left the world of student theatre (more on that here), I am incredibly proud of what we accomplished and, as I have told many of the graduate recruiters I’ve met this term, it is an experience which I will continue to showcase on my CV for many years to come.

As any entrepreneur or artist will tell you, it isn’t easy to found a limited company, crowd-fund £3,000, recruit an amazing cast and crew and take a full-fledged production of Shakespeare’s greatest tragedy the length of the country to showcase it in Brighton in less than five months but we did it. Perhaps even more incredible is how well we performed in comparison to the six other productions of Hamlet taking place at the Edinburgh Fringe in our first year! Oh, and we turned a £2k profit – just saying!

Co-founding the company with Elske and Henry was an amazing experience and I’m really looking forward to seeing what the team produce at next year’s festival – although this time, I think I’ll settle for the role of an audience member! In the meantime, you can keep up with them on their website or on social media.

On the Road: Frankfurt, York, London, Munich, Cornwall, Antwerp, Normandy, Tirol, Tuscany For a (semi-)international student, travel is not unusual but this year, its been a constant. As my father put it the other week, I’ve been “living an extravagant lifestyle”. Well, if you count 17 flights, 36 long-distance train journeys and more than 5,000 miles of driving as extravagant, I guess I’d agree. This year, I’ve been particularly fortunate to travel widely across Europe. Whether it has been to visit Eve in Munich, visiting Bozhidara in Antwerp, skiing in Tirol, holidaying with family in Tuscany and Normandy, singing at the St. Endellion Easter Festival in Cornwall or just visiting home in Frankfurt or my grandparents in York, I’ve spent many days sat in those uncomfortable train carriages.

I’ve also travelled to London on a number of occasions this year, having spent a weekend in the city at the end of August to attend the BBC Proms and having attended a number of assessment centres in October and November, from which I’m delighted to have been offered (and have accepted – more on that here) an internship with PwC next summer.

Where will next year take me, I wonder?

Teadough I won’t say much on this topic given that I published The Teadough Story a few weeks back in plenty of detail but I still feel it is worth mentioning. It’s been an absolute pleasure working with Hannah and Arthur, as well as the teams at LAUNCH.ed and 3 Day Startup, in creating the Original Doughnut Kit – the first (as far as we know) kit which allows you to bake great doughnuts at home, without the need for a deep-fat fryer. We’re now looking forward to hearing from the lucky ones who opened one on Christmas Day and from all of the Instagram folks who are tempted by the mouthwatering photos they post!

You can continue to follow their progress on social media, as well as on their website where kits will be available for sale again shortly.

Blogging Away This Christmas marks a year since this website first launched as a Tumblr blog. To date, its fifteen posts have seen around 2,500 times which, for me, is quite an achievement given the broad range of topics I’ve covered and the complete lack of overarching theme which would normally draw readers back. Although there have been a number of more controversial posts, the feedback I’ve received has been really positive and I’m thrilled to have relaunched the website this month to showcase more of my work as an entrepreneur and an undergraduate and look forward to another year of writing on the topics of the day, whether they be big or small.

If you’ve got any suggestions for future blog posts, let me know in the comments below!

2015: The Year Ahead With the New Year just a few days away, it’s time to look forward to many exciting activities in 2015. There’ll be a brand new set of New Year’s Resolutions, following on from this year’s successful post, which I’ll publish on January 1st, I’ve got a few ideas for trips around Europe, a couple of project ideas sitting on the back burner and a dissertation to get started with (I’m actually excited about that – unlike most).