Karen Hastings is a savvy American entrepreneur in London. In 2008, Karen opened the first Cupcake outlet – a concept spa and private members' club for mums–to–be and new mothers with young children. At Cupcake, mothers can socialize and feel part of a community through dozens of free seminars, antenatal and postnatal fitness classes, parent and baby well being lessons, and indulgent spa treatments in Cupcake's award–wining treatment rooms, all while their little ones are well cared for on their secure premises.
A Young Guns Award from Growing Business Magazine, a spot as one of the top 100 Start Ups in the UK, and rave reviews across major and local media has encouraged Karen to look towards expansion. With three clubs now open, Cupcake is set to open seven more outlets in the next four years.
Expat Women's Interview with Karen
Expat Women: Karen, what gave you the idea to start a spa and private club for mothers?
Karen: As I reached my 30's and my friends began to start families, I observed a gap in the market for a place where expectant mothers and people with young children could go to socialise and feel part of a community. I realized that there was no convenient place for them to go and enjoy this stage of life. While at coffee shops, mums with prams are seen as "in the way" and often pushed to the side. Antenatal classes are often held on a dusty gym floor – not very inspiring.
I envisioned a place where mums–to–be and mums could really get what they need, have resources available to them to help them focus on their family's wellness, but also be a place where they can indulge sometimes. For example, a luxurious massage or facial or just a treat from the café would really be something pregnant women and mums could appreciate. Also, we created membership to include the whole family, so dads are welcome too! Cupcake even has classes and spa treatments tailored for men, plus the treatment rooms at Cupcake are open to both members and non–members alike.
Expat Women:How did you go about researching your market before committing to your idea?
Karen: I used a few different strategies to collect the information I needed.I did 'library' research on the mum/baby/leisure industries where I read up on the topic and tried to make myself an expert on it. I then did an analysis of 20,000 postcodes with the help of census data to identify the best places for Cupcake. I also conducted focus groups (mostly through friends of friends in the beginning) and 'walked the streets' to devise a location scorecard to help us select the best places to launch our idea.
Expat Women:What were some obstacles you faced while starting Cupcake and how did you overcome them? Karen: The biggest obstacle was finding property. Landlords in the UK tend to be very risk averse and thus are not keen to rent to new businesses. We just kept looking and finally found a great property – and a great landlord.
Expat Women:Has your role within Cupcake changed now that your business is expanding?
Karen:I have managers at each club now, so I can be more hands–off with managing the day–to–day aspects of the clubs. What I do now is try to spend more of my time outside of the clubs – growing the business and creating the partnerships that will ultimately drive the business forward as a whole.
Expat Women: What are some secrets to your entrepreneurial success?
Karen: I think it is important to surround yourself with a good network of people who can help you build your business. Essentially, create a "fellowship" of people to cover the different aspects of your business, like finance, strategy, marketing and sales. Find ways to vet people who want to work with the business – poach where necessary! Also, I do not underestimate the good that comes from a cheerleading team behind the entire effort!
It also helps to communicate well with your team and find ways that work for you. I advocate creating and using a monthly update that reports on progress each time and asks team members for specific things each time. This way, everyone is on the same page and tasks are better tracked and completed.
Something else that I find important is to be accountable. This means being accountable for your goals/timeline, for your brand and for your actions.
Expat Women:What are your top five tips for women who are thinking of starting their own business abroad?
Karen:
1.
Do the numbers. Figure out how much money the business can make and figure out how you can survive the start up financially.
2.
Use all available resources. Use the local library, the business groups in your area, the chamber of commerce... anything and everything. Tell everyone and network, network, network! Someone you meet may be able to help. Make use of alumni associations and schools/women's/expat groups and so on.
3.
Find inspiration. Some days will be harder than others. Inspiration can come from other entrepreneurs, from books and small business podcasts, from women's entrepreneurship conferences and the like.
4.
Find competition. What will people spend on instead of what you want to provide? "Secret shop" everything. Go undercover and do some research on your competitors.
5.
Identify what you are really trying to achieve at the end of the day – for you, for the business, and for your family. Part of this really requires that you have your partner's full support!
Expat Women: What do you ultimately hope to accomplish with the Cupcake brand?
Karen: We would love to provide the best of community, wellness and indulgence to mums worldwide through our clubs, our products and our service offerings.
Expat Women:Karen, congratulations on your unique idea and the rapid success of Cupcake. We wish you the best as Cupcake continues to expand across the UK... and beyond!
