308 | Benefits & Challenges of Running Two Brands with Stephanie Clarke, Dahlia Press

If there’s one constant in business, it’s change. But making big shifts as an entrepreneur can be pretty daunting. After all, it’s one thing to plan and strategize, but it’s quite another to take the leap and start implementing those steps.

While we usually talk to people who are in the midst of making a big change, today we welcome a returning guest and Paper Camp alum, Stephanie Clarke, for a business update after making some major changes to her company back in 2019.

In today’s episode, you’ll find out how things have changed since the transition and how Stephanie’s two brands are doing today. We delve into the challenges and benefits of running two brands, why she stands by her decision to diversify her business, and how she has matured as an entrepreneur.

Stephanie also shares the details of how she expanded her retail footprint post-COVID, what she’s learned from hiring her team (and managing team dynamics), and why it can be so difficult to relinquish control of certain aspects of one’s company.

If you’re interested in the logistics of managing two brands and what this decision can look like a few years down the line, be sure to tune in for an insightful and informative update with Stephanie Clarke.

Today’s episode is brought to you by our free, on-demand wholesale audio series. In this audio series I’ll walk you through the biggest mistakes and most common questions folks have when they are starting and scaling wholesale—so you don’t make the same mistakes myself and others did.

You can binge this audio series in less than an hour and you can listen on the go in your favorite podcast player. No fluff here, just concrete action steps and answers to help you simplify and strengthen your wholesale sales.

Splitting a Business into Two Brands

Running two businesses under one brand caused a lot of decision fatigue for Stephanie. There were also logistical struggles like having one email account for wholesale, direct-to-consumer, and custom wedding invitations.

After a decade of running Dahlia Press, a letterpress greeting card company based in Seattle, Washington, Stephanie recognized the need to split the company in two and start a sister brand under the name Chloe Clarke, The Art of Paper, dedicated entirely to bespoke wedding invitations.

If you’d like to learn more about how and why she made that transition, you can check out our conversation on creating sister brands.

Initially, the idea of splitting and rebranding her business was overwhelming but eventually, Stephanie found there were many benefits to splitting the business into two.

The Benefits

Enhanced Focus: Splitting the businesses allowed Stephanie to focus on each brand independently. Dahlia Press continues to cater to the wholesale market, while Chloe Clark operates as a custom bespoke invitation studio. This division provides clarity and prevents confusion for both customers and Stephanie herself.
Targeted Marketing: Before splitting, Stephanie felt that her marketing and social media efforts targeted two different audiences, causing a lack of coherence. By focusing more on marketing and social media for Chloe Clark (the greeting card side), Stephanie can tailor her messaging to a specific audience, which yields better results.
Efficient Operations: With two separate teams and systems in place, Stephanie now enjoys the benefits of smoother operations. Each brand can function independently without her direct input, allowing her to focus solely on the creative aspects of her business.
Opportunities for Growth: By splitting her business, Stephanie has created room for both brands to expand in their respective markets. This allows for targeted growth strategies and the ability to meet the unique needs of each brand's customer base.

text overlay: "Even thought I was very nervous to make this move, I wish I could go back and say, "Just truth. your gut. This is the right move. It's going to take a while, but it's going to okay." - Stephanie Clarke

Expanding with a Dedicated Retail Space

Stephanie's business had been operating in the same retail studio space for about seven years. In this space, she was running the retail side, handling wholesale, and meeting with clients for custom work.

Before COVID, Stephanie made the decision to close down the retail storefront and remodel it into a consultation space for the wedding side of her business. This worked out great because in-person shopping had slowed, and they were prepared to lose income from the storefront.

However, once things started to open back up post-COVID, Stephanie realized both brands being under one roof was causing more headache than she anticipated. The printer would have to stop whenever a wedding consult came in or there was music blaring in the back from packaging.

Fortunately, a space opened up two doors down in the building, which they took over and remodeled as the designated Chloe Clark studio. This allowed Stephanie to have a retail space again, making her customers happy.

Building a Team

Stephanie emphasized the importance of building a strong team.

Delegating operational tasks to capable team members allows her to focus on higher-level creative work and strategic decision-making.

text overlay: "It is a really difficult thing to trust other people to have your best interests (and your business's best interests) at heart. But it's one of those things. I'm trying my best to let them do that. So far it's working."

It takes time to build a strong team, especially a team with members who believe in and support the vision of your business as if it were their own. There are times we, as business owners, bring on members who don’t buy into our vision and it’s okay to learn from that and let those people go.

But, as Stephanie shared, once you find those people who you really trust and who trust you, it can be a really good thing for the business.

Diversifying Your Income Streams

Stephanie advised against diversifying too early in the early phase of business, and I tend to agree.

I see many new businesses that jump into too many product categories at the beginning. Partly because they want to see what sticks but also because they want to see what they enjoy.

It is crucial to first establish and streamline one revenue stream before considering further diversification. Once the business is scaled and running efficiently, gradual and systematic diversification can be explored.

Instead, pick a lane and focus on one revenue stream during the "messy middle" phase of business.

By scaling efforts in a targeted manner, you can build out your systems and processes to allow for growth while maintaining operational efficiency.

Should You Split a Business into Two?

text overlay: "Overall, I think splitting the two brands was the smartest move I could have made." Stephanie Clarke Ep. 308

Splitting a business into two brands can be a strategic move to enhance focus, target marketing efforts, and allow for growth opportunities.

However, it does come with its challenges, such as decision fatigue and the need to develop a resilient mindset. By building a strong team and scaling efforts systematically, business owners can navigate the struggles of managing multiple brands while still enjoying the benefits of running their own business.

Quick Links

Here is a quick recap of links to helpful blogs and podcasts shared in this post.

If you’re looking for additional support as you grow the wholesale side of your business, join our Paper Camp program.

Paper Camp is an intensive program to help you not only understand the steps and processes within wholesale, but also why we do things a certain way and how it impacts your business. The alumni community also allows for even more collaboration to take your business to the next level by working with your peers.

learn more about paper camp

Download These Quotables to Save and Share

meet stephanie

Stephanie Clarke is the owner and designer of Dahlia Press, a letterpress greeting card company based out of Seattle, Washington. Dahlia Press began in 2008 when Stephanie left the corporate world to pursue her passion of designing unique and creative custom invitations. In 2014, she expanded her line to include letterpressed greetings and social stationery available to the wholesale market. At the same time, she opened her first brick-and-mortar location. In 2019 Stephanie launched a sister brand to Dahlia Press under the name Chloe Clarke, The Art of Paper, dedicated entirely to her bespoke wedding invitations. Today, Dahlia Press and Chloe Clarke have neighboring studios in Seattle’s Portage Bay neighborhood.

Dahlia Press has been featured in publications such as Domino Magazine, The Knot, and The New York Times. Currently, Dahlia Press can be found in boutique retailers nationwide, as well as global brands such as Urban Outfitters and Anthropologie.

In addition to her stationery company, Stephanie is an accomplished commercial designer. With over 18 years of design experience, she has an extensive portfolio of impactful visual identities, logo strategies, interior store environment designs, brand websites and digital content for several top companies, including Starbucks, Coach, and Marmot among others. Clarke holds degrees in both Art History & Design. In her free time, she enjoys exploring Seattle with her husband Chris and Whoodle, Nova.

CONNECT WITH STEPHANIE

WEBSITE: dahliapress.com | INSTAGRAM: @dahliapress| FACEBOOK: @dahliapress

WEBSITE: chloeclarkepaper.com | INSTAGRAM: @chloeclarkepaper | FACEBOOK: @chloeclarkepaper

Connect with Katie Hunt

Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.

Website: prooftoproduct.com | Instagram: @prooftoproduct