The Alchemist

 

Several definitions exist, but alchemy in its earliest forms centered around the transformation of energy, specifically the transmutation of common metals into gold. And while this original interpretation changed and expanded over the centuries, the conceptual focus of alchemy continues to carry a relevant message. The process of turning something worthless into something of great value, and as a consequence, prolonging its life, resonates with new meaning today.

As I have interviewed more small business owners, this lesson of alchemy has surfaced in an interesting way. The individuals behind the businesses I’ve featured were all confronting some sort of loss when their idea came to them. At a moment when most would see themselves as victims of an unfortunate situation, these people instead saw an opportunity, perhaps sensing the hidden value. And so began the transmutation.

This is particularly true in the case of Eli Reich, creator and owner of Alchemy Goods, a Seattle based company that manufactures bags and accessories out of recycled materials. Back in 2004, Eli’s messenger bag was stolen, and rather than buy a new one, he decided to give a pile of used bicycle tires a new lease on life, transforming them into a replacement bag…and then into a business. For this week’s Trust Your Blackbird installment, I’m sharing my brief Q&A with Eli. Thoughtful and inspiring, his answers illuminate the very real value that can be found in a simple idea, a refreshing business model, and a choice to do the right thing.

JD: I understand that, prior to starting Alchemy Goods, you were quite successful, working as a consultant for a wind energy company. I’m guessing that this previous job centered around similar themes (environmental awareness, renewable energy, social responsibility), so why did you still feel compelled to take the risky step of starting your own business?

ER: The two jobs were indeed similar in some vein, but the devil is in the details. It was not so much that something was missing either. The field of renewable energy is expanding, and continues to be a strong area of interest for me, so, in many ways, the shift was motivated by the desire to do something on my own, and an opportunity had presented itself.

Starting a business can be so rewarding simply because it requires so much from you, and rather than just being a contributor to an operation, you are the operation…at least for a while, and it is an enriching process. You will learn a significant amount whether it succeeds or fails.

JD: It sounds as though you moved cautiously through the development process, keeping your existing job for the first year while you worked out the kinks, but were there moments of sheer terror for you, when you felt overwhelmed by the bigger picture of what you were attempting? If so, how did you get through those stages?

ER: There’s an illusion that you have control over everything when you’re at the helm, but, if anything, you’re more acutely aware of how much you don’t have control over. You manage so many different risks, and can never be sure of how it will go. And so, in my case, starting small was a nice way to open myself up to those lessons and realizations. I was able to take it in stride.

The first year was definitely the most gradual (selling around 100 bags), and I had fairly modest hopes and dreams. But as I grew, and learned more about what the possibilities are, the process definitely accelerated. Faster growth comes with an increasing realization that more avenues are available.

JD: Were you intimidated by the process of approaching local vendors and retailers to see if they’d carry your product, and did you find it difficult to pitch the idea?

ER: The first step for me was the local farmers markets, setting up a booth and selling the bags. As for relationships with bike shops, they grew naturally. We had gone to many of them to collect the tires for making the bags, and so the idea didn’t necessarily need to be pitched. The response from customers and the community was really positive, so much of marketing took care of itself through word of mouth.

JD: I know from your previous interviews that friends and acquaintances were instantly curious about the first bag you created, but at what point did you really believe you were on to something? Was there a day or week when things started to take off, or did it just steadily increase?

ER: We began to get attention from some of the larger stores in the fall of 2006, but a big moment came when I was approached by Whole Foods. So many people fight to have their products carried in Whole Foods stores. When they actually came looking for us, it was definitely a sign that we were headed in the right direction.

We were also the recipient of a grant courtesy of King County’s Link Up program, which provides resources and financial incentives to companies that increase the use of recycled materials in manufacturing. That recognition also fueled our growth, as we were able to invest some of the grant money into marketing.

JD: So, in looking back on the first four years of business, what belief has contributed most to your success?

ER: The belief that if you give people the opportunity to do the right thing, then they often will, and this played out in two ways for our business. On the product side, by providing customers with a bag made from recycled materials, one that has a very small environmental footprint, we didn’t have to convince them that it was a good investment.

At the same time, from the manufacturing side, by making the recycling process as easy and convenient as possible for suppliers, i.e. bike shops and junkyards, you drastically increase the likelihood that they will support your efforts.

JD: If you could pass on a word of advice to other young entrepreneurs or people who are considering starting a business, what would it be?

ER: Well, starting a business is a huge learning process. It involves so much personal responsibility, and it is important that you learn to not be a victim and just go for it.

It is also important to invite people into that process. While you might have a skill that helps to get a business off the ground, thinking that you are the only person capable of doing everything will only be detrimental to future growth. The more trusting you can be, and the more you can bring people into what you do, integrate their strengths into the process, the more successful you will be.

To learn more about Alchemy Goods, or to find a local shop that carries their products, click here.

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