Marianne Bertrand
Marianne Bertrand, President and Founder
Company: Muttluks Inc., Toronto, Ontario
Contact Info: Tel: 1-888-MUTTLUK (688-8585); e-mail: marianne@muttluks.com
Description: Muttluks manufactures a quintessential Canadian product - dog boots to protect hounds' paws from harsh elements like ice and snow. Housed in a 10,000 square-foot manufacturing plant in Toronto, Ontario, the company exports 70% of its quality canine paw wear, primarily to the U.S. After 9/11, owner Marianne Bertrand donated 800 pairs of Muttluks boots to the NYPD Canine Unit to search through the rubble at Ground Zero. The company has recently expanded its product line, now offering dog coats, toys and even books - and is transitioning to the name 'Muttopia'.
Background: An avid environmentalist, Marianne Bertrand ran her own environmental construction/renovation business in the late 1980s. Inspired by a pair of ineffective dog boots she received as a gift for her own pet, Marianne started Muttluks in her home in 1994, designing and sewing a more durable boot. She knew she had a viable idea when over 100 sets sold out to local pet stores within a week. In 1997, she moved into a manufacturing facility and, by 1999, most of the company's sales were from the U.S. and even Europe and Japan.
Awards: In 2002, Marianne was honoured with a Canadian Woman Entrepreneur of the Year Award for Innovation. "When you are slugging away, it's always nice to get that pat on the back. You can experience many doubts when you are self-employed. Some years the money is there and some years it is not, so it's great to get this professional recognition and to say, yes, we are a small Canadian company but we are in this league. Not only have I made excellent contacts through the process and received great press, but it's nice to take things up a notch and be able to say that our small Canadian company is in this league."
Award Tips: "Running your business may seem like nuts and bolts, but how you deal with your employees and how you deal with that piece of machinery that breaks down is actually what may help you win the award. Everybody has a product and there is only so much you can say about your product - what is more important is telling how you problem solve. People want to know what's under the hood." The application process is a good way to get employees involved and to boost morale. "I wrote the first draft and ran it by my staff for their input...and even sent it to my mother, who is one of my lenders and also a businessperson." Likewise, Marianne ensured that her application for the 2002 Innovation Award reflected all the innovative things she had done. These included her donation of boots for canine units searching the rubble after 9/11. "I also talked about our innovations in financing, in customer contact, in production and even in human resources."
Biggest Exporting Benefit? "Access to larger and different markets, but that does not always come without risk."
Biggest Challenge: "Right now we have to run a very tight ship and really do our homework, due to the drop in the U.S. dollar. It's rough because our margins have dropped drastically and competition - 95% of which is direct knock-offs of our product - has flooded in from China. That is the 'glass is half empty' view. But I see it differently - life is a constant state of change and I believe that within change there is always opportunity. It is up to us to find it. We are looking into a portion of overseas production and into making a mid-priced product like our competitors so that we can go head to head after that business. These are huge opportunities we would not have seen or looked at if the dollar hadn't changed."
Lesson Learned from Exporting: "There is always risk. Know your risks and minimize everything over which you have control over - insure your receivables, assume there will be currency fluctuations at some point (even if it's years away), know your currency fluctuation tolerances. Always assume there will be some kind of change and turn the change into opportunity. Otherwise that risk will be your downfall."
Productivity Improvements: Marianne continually reviews ways to improve the operation, including bringing more of the manufacturing in-house. "Some people go the other way and farm it out so they don't have the overhead. We brought equipment in-house and lowered our production costs by almost 25%." In addition, Muttluks moved its factory facilities, saving some $40,000 a year. Marianne also brought in unskilled labourers to do packaging, freeing up her skilled sewers to focus on what they do best. The productivity improvements have allowed Muttluks to weather currency fluctuations. "When our margins dropped, so did our costs," she explains. "This allowed us to go after export accounts in Europe."
How RBC Helps: "RBC has helped me tremendously over the years, directly and indirectly. The bank consistently expanded my line of credit as my business grew. This was key as many other banks told me it wasn't worth even applying. RBC has also indirectly had a huge influence on my business by sponsoring women's business events such as the 1997 Women's Trade Mission to Washington and the 1999 Canada/U.S. Trade Summit for women entrepreneurs. These events have enabled me to network with successful women, which in turn has motivated and educated me in running and growing my business. Nothing leads to success like meeting with success. Many banks came forward to offer financing after I won the 2002 Canadian Woman Entrepreneur of the Year Award, but nobody beat RBC. And our account manager is great. She takes the time to understand our business, which is different from the formulas, so I'm comfortable telling her what's going right and wrong. She has gone to bat for me many times and is a real advocate for women in business."
Growth Plans: With the expansion of the company's product line and launch of the Muttopia name, Marianne is now revamping the corporate image and will continue to look for complementary products to add. "We're going in a new direction and broadening the spectrum. You could say that Muttluks is reaching Muttopia!"
Personal Interests: It's not uncommon for Marianne - both a motorcycle and animal lover - to be seen riding her BMW bike with her basset hound, Trombone, in the sidecar. A mother to 1-1/2-year-old Melody, she also has three cats, six horses and a 700-pound pig living on her 150-acre farm. Her horses were all rescued, two from the slaughterhouse. "I take horses that everyone else has given up on, either emotionally, physically or both, and work with them so they can become 'normal'," she explains. "It was always my dream to live in the country and have horses!"
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