Mistrust, disconnect, fear…all of the above?
There’s a plethora of reasons why Bahamian small businesses either fail at or are afraid to even dapple in the global e-commerce markets. Getting your business online, setting up payment gateways, marketing to a broad audience; and then there’s opening U.S. bank account and an unfamiliar tax structure! Whew! At first glance, it’s easy to see why many Bahamian small businesses shy away from going online.
But a young, fresh Bahamian owned business says it’s sole mission is “to build a new economic bridge between the U.S. and Caribbean economies through e-commerce.”
Meet Otishka Ferguson, who used her love of fashion, entertainment and economics to create Dani & Drew an LA-based women’s lifestyle consultancy that partners with Bahamian and U.S. entrepreneurs to plan, launch, or relaunch e-commerce businesses that service both markets.
We caught up with her recently to learn more about her company, get some valuable and timely gems and a sneak peek into her strategy for helping Bahamians understand how to finally master the e-commerce giant. Grab a pen.
LitFluential (LF): Tell us about Dani & Drew and what made you want to start the business.
Otishka (O): I grew up in a family-owned hair salon and clothing boutique, so entrepreneurship has always been a part of my life and seemed like a viable career path for me. Early on in my career, I had the opportunity to learn about and use legacy web design and e-commerce platforms such as Adobe DreamWeaver and Amazon’s Seller Central. That sparked my interest in leveraging e-commerce as a customer, and for business. When I left The Bahamas back in 2017, I did so because I felt like a lot of companies weren’t ready to embrace the fullness of my skillset. Although I was frustrated, I wasn’t discouraged. I initially began writing the business plan in 2015 and completed it in 2018. I knew that I wanted to create a company that would combine all of the things that I love – beauty, fashion, e-commerce, and working with small businesses.
I also knew that I wanted to contribute to The Bahamian economy somehow, no matter where I was in the world. That is why many of my clients so far have been new and existing Bahamian entrepreneurs. Dani & Drew is a marriage of my passion and one of the many purposes that I am here for, indeed.
LF: According to your website, you take a keen interest in helping “diasporic Caribbean entrepreneurs in the beauty, entertainment and fashion industries.” Tell us why this is your target market and what expertise, knowledge and gems you plan to share in this arena?
O: As a Caribbean woman living in the U.S., it is easy to get lost in a culture that is constantly challenged by its past. Because there is still so much unlearning and relearning to be done among the different cultures in America, particularly black versus white culture, it is difficult for them to include outsiders in the conversation, or, to even see that we belong in that conversation as much as people born of that soil. Experiencing this exclusion has not so much embittered me as it has made me feel more inclined to share Caribbean stories, especially for those of us who are so far away from home. When I look around the beauty, entertainment, and fashion industries, I see a lot of Caribbean influence whether or not it is acknowledged. I see a lot of doors opened due to some of the work by Caribbean people whether or not it is acknowledged. In The Bahamas, a lot of our culture has been watered down thanks to tourism which will always be a double-edged sword. This watering down has disempowered many Bahamians whether or not we realize it. For me, the best way to empower others is to give them knowledge followed by opportunities. I’ve been fortunate to connect with other Caribbean people in Los Angeles who share my sentiment, and we are all committed to the same thing – amplifying our voices, creating work opportunities for other talented people from our region, and showing the world that we’re here and deserve to be treated as more than the friends you keep for a place to vacation.
LF: What are some of the main issues you’ve noticed Caribbean entrepreneurs face with starting their e-commerce businesses? What are some suggestions to fix these issues? And, define e-commerce for those who might still be confused.
O: So far, I haven’t encountered any issues with getting Caribbean entrepreneurs to embrace the U.S. market. For the most part, many of them seem to understand that there is much opportunity in reaching beyond Caribbean shores. However, I consider e-commerce to be a very U.S./global business practice. Despite how long e-commerce has been around, and the fact that so many Caribbean people shop online with U.S./global merchants, there is still a disconnect for their Caribbean-based customers. They are hesitant to shop online with local merchants. Some of it is a fear of technology, for example, I have witnessed many people who believe that PayPal is a scam! Most of it is a lack of trust with local merchants who may have provided poor customer experiences in or products and services in the past, and resistance to change. Caribbean customers are not forgiving, so the customer’s obstinance will always be a hurdle online and offline. The best way to fix it is to commit to your business and communicate like your life depends on it! Because it does. A lot of Caribbean entrepreneurs are afraid to use words and implement policies for fear that they will scare customers away, or that people will not understand. By underestimating their customers, they lose out every time.
LF: Let’s talk money, banks and social security numbers (SSN); many Caribbean entrepreneurs wanting to start an e-commerce business are faced with IRS roadblocks when it comes to actually accessing and “bringing their money home.” Does your company help solve these issues and are there any workarounds you can share?
O: I think we need to start by understanding that as long as it’s your or your business’s bank account, there should be no concerns about ‘bringing money home.’
The money is always accessible from one bank account to another. Emphasis on bank account. In business, it is not unusual for people with the access and/or means to have bank accounts across different countries. This is no different for the Bahamian business owner who opens a U.S. bank account. Because we don’t have a similar tax structure as the U.S., Bahamians are afraid of the unknown. However, once you begin doing business in the U.S., on-land or offshore, you will find that it’s a lot less burdensome and more affordable to manage, oftentimes, than it is in The Bahamas. You don’t need a SSN to start a business. If you are opening a business checking account, you also don’t need a SSN. Further, you don’t need a SSN to get an EIN (Employer’s Identification Number) which is what you need for your business and to open a business checking account. It is free to obtain this number once you register your business. Let’s say you don’t care to register a business in the U.S. yet still want a personal checking account, simply research a bank, hop on a flight, and visit the bank’s branch to open your account. There are no rules against Bahamians opening U.S. bank accounts!
LF: ….And then there’s branding, marketing and expertly using social media to sell your business; what trends and movements should businesses be focusing and which ones are overrated?
O: Is it bad that I don’t follow any of the trends? I think everything is cyclical, so I wear trends loosely and stick to what works. Since the pandemic started, a lot of companies have used more traditional means to connect with clients. For example, email marketing. My list has an 80 percent open rate and a 30 percent clickthrough rate, and I don’t email nearly as much as I should! You really ought to know what resonates with your audience, then marry that to what you would like to invest your marketing spend in.
LF: What are your top five tips for a Caribbean entrepreneur wanting to start an e-commerce business?
O: 1. Make sure that you are starting a business that can be set apart from your competitors. The best businesses solve problems. Never forget that.
2. Write a business plan. It doesn’t have to be formal! Just write out what you want your first three years of business to look like. It helps you to get past the first-year mark (70 percent of businesses fail in the first year), and pivot easily.
3. Be prepared to spend money. Especially if you are selling products. There is no way around this, unfortunately, and taking the cheap route sends you quickly to the arms of the “more expensive,” quality product or service every time.
4. Stay consistent. Nothing says you’re unserious than when you keep starting and stopping.
5. Did I mention to solve problems? The best way to excel in Caribbean e-commerce is to be convenient.
Whew! maybe we should’ve warned you that sis was coming to preach and put us in business school, but she did that! If you want to work with Dani & Drew shoot an email to hello@danidrew.co, visit their website www.danidrew.co or follow them on social media!