Startups

How a mumpreneur recalibrated after losing thousands in web design fraud

When Australian entrepreneur and mother Svetlana Foox was setting up the business she had long dreamt of launching, she thought she had found the perfect web development partner. After months of planning the business, she searched online for a company to build her new membership platform, Vainish Perks. The web development business promoted itself as a Shopify development partner and appeared professional, experienced and trustworthy.

Confident she had found the right team, Svetlana paid the full development fee upfront. But then they disappeared! “They simply vanished, she bemoans. “My calls weren’t returned, my emails went unanswered and I realised the money I’d worked so hard to save was gone.”

“It was one of the worst experiences of my life, Svetlana adds. “I am too embarrassed to share how much money I lost, but it was in the thousands.”

A winning concept

Svetlana came up with the concept of Vainish Perks after recognising two growing problems across Australia. Firstly, she saw women abandoning beauty and wellness treatments because of rising living costs. And, secondly, many salons, clinics and wellness providers were struggling to attract new customers.

“I wanted to create something that genuinely helped both sides,” she explains. “The idea was simple. Businesses upload exclusive member-only offers to the platform and women log in through their membership to access discounts on beauty, wellness and lifestyle services.

“The platform helps women continue investing in themselves without paying full price, while introducing businesses to completely new customers who often become long-term clients,” she adds.

A dream nearly shattered

Svetlana believed in the model. She saw it as a win-win for both consumers and small business. Instead, before the platform was even built, her dream almost collapsed through no fault of her own.

“The web developers looked legitimate,” she insists. “They presented themselves professionally and claimed to have the expertise I needed. I had absolutely no reason to believe I was walking into a disaster.” However, as soon as she had paid the fee upfront, communication quickly deteriorated. It then stopped altogether.

“The financial loss was devastating and it almost broke me,” she recalls. “I’d poured everything into this business and suddenly I was back to square one.”

The resilience to rebuild

Svetlana was at a crossroads. But she swallowed her pride, heeded the lesson and tried again. Second time around Svetlana replicated the detailed research she had done originally, but added extra checks and balances. She checked references, spoke with the existing clients of developers that appealed and thoroughly investigating them. “I became incredibly cautious and I was determined not to make the same mistake twice,” she says. “I eventually partnered with a new development team that successfully delivered the platform.

“The difference has been extraordinary,” she enthuses. “They’ve been transparent, professional and genuinely cared about bringing my vision to life.”

Helping both women and businesses

Svetlana is adamant that the platform is far more than a just discount website. “Our mission is to make self-care more affordable at a time when so many women are struggling with the cost of living,” she says. “Many women, particularly single mothers, stop spending money on themselves because they’re putting everyone else first.

“It creates affordable access for women while helping local businesses fill appointments, generate new revenue and build loyal customer relationships,” Svetlana explains. “It’s helping both sides during one of the toughest economic periods we’ve experienced.”

Lessons learnt

Svetlana urges founders to slow down before handing over money to web developers, however keen they are to get going. “When you’re building your dream business, you want to believe people are genuine,” she cautions. “Unfortunately, scammers know exactly how to exploit that.

“My biggest mistake was trusting what I saw online,” She laments. “Don’t assume a company is Australian simply because it has an Australian website or markets itself to Australian businesses. Do your due diligence and ask for referrals,” she implores. “Speak directly with previous clients and make sure the people you’re trusting with your business actually have a proven track record.”

On the subject of her decision to come back better and stronger, Svetlana believes that refusing to quit became one of the best decisions she ever made. “I nearly gave up, but I kept reminding myself why I started,” she says. “I wanted to build something that genuinely helps women feel good about themselves while helping Australian businesses grow. One bad experience doesn’t have to end your dream. I have learned from it, rebuilt and never stopped believing in the idea that inspired me to start this journey in the first place.”

This story was originally published on Inside Small Business.