Taylor McCleneghan knows from years of working in retail that there are lots of great ideas for products that never come to market because their creators can’t find a manufacturer.
That’s why she started her Ravenswood business-to-business company Small Shop.
The firm, founded in 2018 with her husband, Nathaniel Cook, coaches entrepreneurs, helping them with design, materials sourcing and manufacturing. It uses companies in India and Nepal that offer ethical, transparent and sustainable methods. Its clients have annual revenues ranging from about $250,000 to $4 million.
“We help companies in the U.S. get things made with manufacturers that we have long-term relationships with,” said McCleneghan, 37, who lives in Park Ridge.
The business shares office space with retailers Mata Traders and Tori Grace Outfitters at 5112 N. Ravenswood Ave.
Having its office in the midst of the retailers’ showrooms is a convenient setup, as clients can examine new Tori Grace fair trade pajama sets. Small Shop helped the brand find a manufacturer, beginning with the design process, artwork and selecting fabric blends.
The pajamas are covered in iconic but less touristy Chicago symbols, from the Marshall Field’s clock to wintertime “dibs” chairs.
“Everything is from scratch,” McCleneghan said. “It’s a lot more unique.”
For another project, Small Shop sourced production of artisan-made tea infusers for JusTea, a Canada-based fair trade tea company that partners with Kenyan farmers.
Small Shop is helping another entrepreneur create functional bags using leather that’s tanned in an environmentally sound way.
“It all comes down to doing good work with good people,” McCleneghan said.
Besides the fun part of helping to design and manufacture ethically sourced products, Small Shop handles red tape, such as exporting, shipping and importing fees and proper labels so shipments make it through customs.
The company has one part-time employee and two temporary workers. It also works with a number of contractors, including a part-time staffer in New York and three contractors in India.
Last year’s annual sales were about $160,000. McCleneghan’s wish for 2025 is to grow the business by 30% and expand its staff.
McCleneghan has been seeking help and advice from women’s business groups. She’s also looking for outside financing after self-funding the business.
Interest rates aren’t great for borrowers right now, but she isn’t getting discouraged. “Slow and steady wins the race,” she said.
The market for ethically sourced products is smaller compared to consumer demand for mass retailers like Walmart and Target, but McClenaghan said loyalty can make up for that.
“We are nervous because a lot of small businesses have closed,” she said. “But at the same time, there is an ongoing trend of consumers wanting to feel connected to their money. I think businesses who have a meaningful story to tell are a little more weatherproof.”
One area of concern is tariffs. President Donald Trump has said he’ll impose “reciprocal” tariffs on goods from India and other countries, starting Wednesday.
Tariffs on products from Canada and Mexico have been hastily imposed, withdrawn then reimposed. Those, along with 25% tariffs on aluminum and steel imports, are causing headaches for U.S. importers.
A sudden tariff on items imported from India or Nepal could bring an “exponential increase” in the cost per unit of items Small Shop sources for clients, McCleneghan said.
She said even U.S. manufacturers will be hurt by tariffs because many components come from abroad.
She’s hoping that with India — which has high tariffs on some U.S. goods entering its country — any new import tariffs will be dropped.
“I feel like it’s still maybe going to be imposed quickly but then it’ll be walked back,” McClenaghan said. “We shall see.”
If she could wave a magic wand, McClenaghan said there’d be more oversight of direct-to-consumer products coming to the United States from retailers like Temu, whose cheaply priced goods made of poor materials are often produced in dangerous conditions.
Despite the threat of tariffs and competitors that cut corners, McCleneghan is hoping 2025 is the year Small Shop gets a little bigger.
“I’m generally optimistic,” she said. “My experience in small business thus far is you do get rewarded for hard work. I mean, modestly. I love it — for its excitement and hardship.”
