IBN Success Spotlight on
Larry Moroni of BioChemicals International
July 2, 2001
Member Success Spotlights are one of the benefits of IBN membership. To learn more about this and other IBN member benefits, click here.
Introduction To BioChemicals International, aka BioChemica
I first met Larry and BioChemica at a
trade show earlier this year. I was immediately drawn to his colorful booth with easy
to read descriptions of some of their best selling products such as aloe, shea and
avocado butters. The experience got even better when I spoke with Larry personally about his products. It is rare to enjoy
such enthusiasm in the midst of a long day at a trade show, but Larry's
excitement was contagious and we have stayed in touch ever since.
Larry has been involved in the manufacture and distribution of natural raw materials since 1974. BioChemica's specialties include exotic butters and oils and aloe vera products. In addition to aloe, shea and avocado butters, BioChemica also sells hemp oil, emu oil and a variety of aloe vera products. Additionally, they supply a cosmetic emulsion base called BioCreme Concentrate. BioCreme Concentrate is a pre-made base to which you can add ingredients of your choice, including scent, and which allows you to control the texture of the finished product by adding either a little water (for a thicker product) or a lot of water (for a thinner product).
All In The Family At BioChemica
After working for several other suppliers, Larry and his wife started BioChemica in 1993 because they believed they could offer quality products and targeted services catering to the special needs of smaller manufacturers of cosmetics and toiletries. The overseas contacts they had developed in prior positions at larger companies proved very valuable as they gathered sources of exotic ingredients from various parts of the globe. Larry recalls, "We borrowed $10,000 from a family member and were later awarded a Small Business Administration loan to launch the company. An unsecured line of credit with our bank now finances our inventory needs. This line of credit is a great help as we continue to grow the business."
Larry says that BioChemica's best selling product is the ultra refined shea butter. He believes this is because shea butter has been on the market the longest and has achieved market recognition as the best quality available. Larry adds that a new product will soon follow. "We expect that our BioCreme Concentrate will soon surpass sales since it is such a phenomenal product for small manufacturers of creams and lotion products."
Over the next 3 to 5 years, BioChemica anticipates 25%-30% growth per year at least. Larry's plans include introducing several new exotic butters to the market, along with other innovative products to help small cosmetics and toiletries manufacturers make products in an efficient and cost effective manner.
How BioChemica Makes It Work
Says Larry," We have several employees on staff, but also use outside warehouse services to perform order fulfillment functions so we can minimize our staffing requirements. We have independent sales representatives and distributors both in the US and overseas so our products are distributed around the world."
Larry contracts with other manufacturers to process some of BioChemica's products. They perform all of their graphics work in-house. Professional service providers as needed include chemists, attorneys and accountants. Says Larry, "We struggle constantly with time management issues since juggling all of the various business issues makes finding time for personal needs a great challenge. But knowing that we have control over our own professional destiny, allows us to make a hug difference in the outcome of business overall."
Larry's Advice To Other Growing Businesses
Larry's advice to other businesses is simple and straightforward - "Avoid undercapitalization," says Larry. "Don't run out of gas before you get to the finish line. Make sure to obtain adequate financial backing before you start and as you grow." (Thanks for this tip Larry! According to Small Business Administration statistics, one of the main reasons small businesses fail is that they are woefully undercapitalized. The other reason is lack of an adequate business plan ... be sure to have both!)
Benefits of IBN Membership
According to Larry, IBN membership is a valuable asset as his business grows. Says Larry, "Our membership in IBN has helped us tremendously by facilitating the identification of new market opportunities to help our business grow. It's a phenomenal way of promoting our business to a very targeted market of small to medium sized toiletries makers. We appreciate IBN and the work Donna Maria does to bring together the various products and services that make up the small but growing handmade toiletries industry."
BioChemica can be contacted at biochemi@bellsouth.net and through their Web site.
