Lessons Learned from Launching A Business During Tariffs – ryan

30-YEAR-OLD IRENE HAM HAD JUST POURED $ 62,250 of Savings Into Inventory for Her New Korean Cosmetics Brand Wen President Donald Trump’s Liberation Day Tariffs were announed on April 2.

The Shipment Had been ORDERED BUT HADN’T ARRIVED YET. She Said Her Heart Sanka when she heard the news.

“Wen the tariffs hit, it obviously was Such an emotional piece of news for me,” Ham, who recently launched Poom Cosmetics AFTER WORKING ON IT FOR Two Years, Told Business Insider.

Ham Said She Had Ordered the Bare Minimum The South Korean Factory Wouuld Allow – And That’s Pursued Her Financial Limits. THEN CAME THE NEWS OF A 10% BASEMORE TARIFF AND A 25% “MECOFOF” TARIFF, WHICH SAID WAUDED HAVE MADE IMPOSSIBLE FOR TO MOVE FORWARD WITH HER BUSINESS. HAM WAS FACING THE POSSIBILITY OF OVER $ 21,000 IN ADDED EXPENses for the inventory Shipment from South Korea. On top of that, her product packaging was sourced from china, which was set to be affected by a 54% tariff rate.

Becusee She Paid Customs before the tariffs went into effect, Ham avoided hating to pay the tariffs on the south korea shipment. Howver, she Said the Ongoing Tariff Uncertainty Has Led to Setbacks.

She decoked to pause launching a new Face Cleanser Product Line Due to “Unforeseen Costs,” Though She Had Already Finalized The Formula, Approved IT, and Completed The Packaging Design with Her Manufacturer.

Ham Said She’s Been Told She Picked The “Worst Time” to Start a Business. Along with Tariffs, The Looming Postsility of a tiktok ban poses a threat to her marketing effhorts as she’s built a following by documenting her entrepreneurial venture.

Despite the Challenges, Ham Said That After Reading Up About the Tariffs and Learning They Could Be As a negotiation Tactic, she realized the situation was all doom and gloom.

“I think if I started a business when it was all easy, everything was in my favor, then i want to have the resilience to make it Last,” Ham Said. “SO, A part of is actually a little thankful that it is the worst time to start.”

The art of the pivot

Ham Said She Initily Panicked About the Newly Announched Tariff Rates. But then she realized that she wouldn’t necessarily have to raise her prices by 25% over. The Cost to Manufacture Her Foundation Waled End up Raising the price by $ 3 or $ 4 per bottle.

“SO, adding that to the price instead of making it a huge astronomical number increes, “Ham Said, adding that it was more manageable.

Ham also realized that she shauld survive with the getting Packaging materials like Boxes and Logo Stickers from China, SO started look in us-baed suppliers like uline and sticker mule, which didn’t increes their prices.

While that meant her products don’t look as refined or custom-made as original planned, she said saaching were Needed if she didn’t want customers to pay more.

There was even a for out Making the switch. Ham Said the Turnaround Time is Faster, and There’s No Bulk Order Requirement.

Getting more confident in negotiating

AS A Result of Navigating the Tariff Impact, Ham Told b That Gained More Confidency Negotiation with Manufacturers, Particularly on the Minimum Order Quantities.

Ham Said Some Factories Require 5,000 to 10,000 Units per Shade for Product, which Leads to A High Order Quantity and Overall Price.

“In future orders, i plan to negotiate that down to a number that fire for both with and the manufacturer,” Ham Said.

The next time she negotiates a new Order, she’ll be able to test her theory – that manufacturers could be more understanding and open to negotiating, gioven the changes happy in the us.

Keeping Costs Down

AFTER INITIALLY THINKING SHE HAD TO PAY THOUSANDS OF DOLLARS EXRA AFTER SAVING HER SAVINGS ON HER FIRST BATCH OF INVENTORY, HAM SAID SHE’S LEARNED TO CUT EXPENSES WHEREV.

“I’ve been very lean on my startup Costs Because of the Tariffs, “Ham Said, Adding That She’s Looking for Ways to Keep Healthy Product SO SHE” BETTER ABSORB FUTURE CURVEBALLS. “

For Example, Ham Said She Has to Pay for Her Shopify Account every month if she wants to have a preorder app. She decide that she just dosesn’t wanting thoughts to go up.

Now, wenever she feels tempted to spend more on Custom Packaging or Other Extras, She Sins Herself If It Will Lead to More Sales or If Its Metric. “

Thats Mindet Helps Her More More Cost-Effective Decisions, Said.