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How I Built A $20 Million Business From Nothing

Business

My journey has taken a very different path from most business people, because I started with nothing, literally. I just knew that when I started EarthKind® with a 99 cent package of garden seeds, and a dream, that I would turn it into something special one day.


Now with my company worth over $20M, I can honestly say that I've never done things in the “traditional way." I hoped for a better future, a future where I could make people's lives a little easier through my inventions, while at the same time protecting the planet and families from dangerous pesticides.

I began like many entrepreneurs, especially women —out of necessity. Our family farm was barely making it, and I was fresh out of alternatives. I knew I had to do something, anything, and make it work somehow. Living on the financial edge every day is wearing. All I could think about was when the next (equipment) breakdown was going to be, how we were going to pay for that, and where the money was to pay for sports equipment and school activity fees. Things that many families, especially in rural communities, deal with every day of their lives.

So, I began by using what I had. Being a farm wife, I had the availability of clean, organic soil and water. I bought a book on how to make $10,000 cash off your backyard. I sold produce for cash every Saturday morning. I'd keep all the money and continue to reinvest for our growth. The only money I'd take out was what I'd pay my kids for helping me and for the lot fees at the farmers markets. Believe it or not, it was possible to make $10,000 a year from a parcel of idle land, selling the produce, and living off my harvests throughout the year. In case you are wondering, we lived pretty frugally – we didn't have running water or air conditioning in our farmhouse back then. We lived on $18,500 a year. My kids tell me today they didn't know we were poor. Farmers call this land rich, and cash poor.

I then joined a co-op to grow everlastings on my space. My plan was to turn that $10,000 into $30,000 a year. The co-op failed, and I was stuck with thousands of dollars of dried flowers – with no way to market them in their current form. So, I got creative, and cut them into 1"-2" pieces, mixed them with North Dakota wild-crafted yucca and bittersweet, added essential oils for aroma, and marketed them as North Dakota potpourri for $12.50 per bag. People living with allergies and chemical sensitivities loved them! I made the rounds with a tank full of gas and attended regional trade shows. Before long I had over 200 stores continually reordering my beautiful blends. Eventually, the other growers, who'd also misplaced their entrepreneurial dream with the same co-op group, sold me their flowers at a discount once they saw my success. I was making $30,000 a year, just over the SBA noted ceiling of revenue for most small businesses, but I wanted to go bigger. Customers, however, were choosing scented candles over potpourri. I couldn't believe that people would prefer to burn petroleum wax with toxic fragrance, but they did.

Once again, I re-thought, and re-set, my efforts with plan B! I made the conscious effort at this time to commercialize the tractor cab potpourri that I had developed and been using on the farm to keep mice out of our equipment, and that's how my first product, Fresh Cab®, was born. I began giving out samples in the fall of 2002. Knowing farmers the way I did, I knew they were not going to take the time to do anything extra, so I figured if they were tossing a bag of poison in the cab, they might just as well try my non-toxic pouch. The product was working and my early trial customers were happy with Fresh Cab®. It repelled the pests so there were no dead bodies to clean up and it was safe around animals and kids.

Photo Courtesy of Hobby Farm

I was on my way! Sales began to grow, we picked up more equipment dealers, including our local John Deere, and we were getting noticed and getting press. That turned out to be a double-edged sword. At a local tradeshow, an Environmental Protection Agency representative sought me out to tell me that any product being sold to control pests needs a license, a process that could cost up to $2M. That was a piece of information that rocked my world. How was I going to get EPA approval when I was barely breaking even? There was a fleeting moment when I thought about giving up, but I knew I was on to something— my product had to reach the masses, there was a gap in the market and I firmly believed it was wrong to just keep killing things because it goes against nature. I also knew that even a small percentage of the market could create a healthy business.

It took about four years of back-and-forth with the EPA and around $200,000 to finally get the license. The money came from grants, selling my beloved packhorse and camper, and income from selling produce. It was not an easy time, but in 2007, I was back on track and EarthKind® was officially launched. Later, in 2016, I added a line of “home" products called Stay Away®, so now I covered both the commercial and mass sides of the business.

I have always had the intention, and still do, to build a new kind of company. I truly believe that business can solve some of our most pressing social problems, and be a force for good in the world. When I discovered that there was 80 percent unemployment within the handicapped population, I considered this workforce as a viable option for open positions – and I'm glad I did. Today, approximately 20 percent of our workforce has a disability and we provide those employees with fulfilling long-term jobs that focus on their abilities.

I also made the decision to keep EarthKind® a totally 'Made in America' brand. That plan included sourcing American-grown raw materials from family farms, manufacturing stateside and keeping a low carbon footprint. As I began to scale the business, the bigger chains wanted lower prices and some suggested that I manufacture in China to get the price down. In my mind that defeated the whole purpose of growing a business using U.S. agricultural products that are environmentally friendly. So I took a different approach at the negotiating table and armed myself with research that showed customers would buy our products if they were in their stores. I have stuck to my guns; even turning down Wal-Mart. There's a point where low pricing just erodes the value of the brand and the mission of the company.

Now, the market has finally caught up with my vision. IRI, a Chicago-based market research firm, estimates that year-over-year retail sales for the overall pest-control market — which includes chemical products and devices intended to kill insects and rodents — was almost $800M as of late December 2016, up 5.5 percent from the previous year.

Unlike most of the poison-based products – 90 percent of this sector – 0ur EarthKind® products are safe to use around food, children and pets. Driven by consumer demand in other industries as well, the all-natural category is growing. Sixty-one percent of pest-control users polled prefer to use natural, non-chemical alternatives, according to a recent Mintel Group research report. It's this type of compelling research that wins over big retailers and opens up opportunities to grow as partners. Lowe's is a great example of the type of partnership that is integral to growing my company the way I envision it. They had conducted surveys of their own and found that customers were asking for all-natural options for things like herbicides and pesticides.

They liked what we were doing and are committed to enhancing the economic growth of their diverse and small business suppliers. They love our company culture and our purpose—this is what they have to say about us:

“We partnered with EarthKind® because it provides our customers with natural alternatives in the pest prevention market, and its hiring practices positively impact the communities we serve," Lowe's Director of Corporate Sustainability Chris Cassell said.

I have always thought if I worked hard and worked towards a goal, that eventually success would follow. And to a certain degree, it has. But there is so much more to building a successful company and taking it to a new level than just hard work and innovation – it's all about leadership. Something I read recently really sums this up for me:

“Dynamic leaders do not let a person, company, or disruption come along and recreate their destiny for them—they change with the trends, innovate, and lead their team through the accompanying changes. Dynamic leaders adapt to new technologies and pivot with changing markets and customer attitudes and desires."

I realize I have to be willing to leave my comfortable domain and embrace a new sense of business savvy, tech-savvy, emotional intelligence and cultural fluency. I have to be seen to outwardly do and be all the things I inwardly embrace and believe in.

I'm ready to take my company to the $100M mark, I'm ready to step into my personal power to make that “mind switch" because someone needs to take the lead at making family, pet, and planet friendly pest control effective and affordable.

Career

Male Managers Afraid To Mentor Women In Wake Of #MeToo Movement

Women in the workplace have always experienced a certain degree of discrimination from male colleagues, and according to new studies, it appears that it is becoming even more difficult for women to get acclimated to modern day work environments, in wake of the #MeToo Movement.


In a recent study conducted by LeanIn.org, in partnership with SurveyMonkey, 60% of male managers confessed to feeling uncomfortable engaging in social situations with women in and outside of the workplace. This includes interactions such as mentorships, meetings, and basic work activities. This statistic comes as a shocking 32% rise from 2018.

What appears the be the crux of the matter is that men are afraid of being accused of sexual harassment. While it is impossible to discredit this fear as incidents of wrongful accusations have taken place, the extent to which it has burgeoned is unacceptable. The #MeToo movement was never a movement against men, but an empowering opportunity for women to speak up about their experiences as victims of sexual harassment. Not only were women supporting one another in sharing to the public that these incidents do occur, and are often swept under the rug, but offered men insight into behaviors and conversations that are typically deemed unwelcomed and unwarranted.

Restricting interaction with women in the workplace is not a solution, but a mere attempt at deflecting from the core issue. Resorting to isolation and exclusion relays the message that if men can't treat women how they want, then they rather not deal with them at all. Educating both men and women on what behaviors are unacceptable while also creating a work environment where men and women are held accountable for their actions would be the ideal scenario. However, the impact of denying women opportunities of mentorship and productive one-on-one meetings hinders growth within their careers and professional networks.

Women, particularly women of color, have always had far fewer opportunities for mentorship which makes it impossible to achieve growth within their careers without them. If women are given limited opportunities to network in and outside of a work environment, then men must limit those opportunities amongst each other, as well. At the most basic level, men should be approaching female colleagues as they would approach their male colleagues. Striving to achieve gender equality within the workplace is essential towards creating a safer environment.

While restricted communication and interaction may diminish the possibility of men being wrongfully accused of sexual harassment, it creates a hostile
environment that perpetuates women-shaming and victim-blaming. Creating distance between men and women only prompts women to believe that male colleagues who avoid them will look away from or entirely discredit sexual harassment they experience from other men in the workplace. This creates an unsafe working environment for both parties where the problem at hand is not solved, but overlooked.

According to LeanIn's study, only 85% of women said they feel safe on the job, a 5% drop from 2018. In the report, Jillesa Gebhardt wrote, "Media coverage that is intended to hold aggressors accountable also seems to create a sense of threat, and people don't seem to feel like aggressors are held accountable." Unfortunately, only 16% of workers believed that harassers holding high positions are held accountable for their actions which inevitably puts victims in difficult, and quite possibly dangerous, situations. 50% of workers also believe that there are more repercussions for the victims than harassers when speaking up.

In a research poll conducted by Edison Research in 2018, 30% of women agreed that their employers did not handle harassment situations properly while 53% percent of men agreed that they did. Often times, male harassers hold a significant amount of power within their careers that gives them a sense of security and freedom to go forward with sexual misconduct. This can be seen in cases such as that of Harvey Weinstein, Bill Cosby and R. Kelly. Men in power seemingly have little to no fear that they will face punishment for their actions.


Source-Alex Brandon, AP

Sheryl Sandberg, Facebook executive and founder of LeanIn.org., believes that in order for there to be positive changes within work environments, more women should be in higher positions. In an interview with CNBC's Julia Boorstin, Sandberg stated, "you know where the least sexual harassment is? Organizations that have more women in senior leadership roles. And so, we need to mentor women, we need to sponsor women, we need to have one-on-one conversations with them that get them promoted." Fortunately, the number of women in leadership positions are slowly increasing which means the prospect of gender equality and safer work environments are looking up.

Despite these concerning statistics, Sandberg does not believe that movements such as the Times Up and Me Too movements, have been responsible for the hardship women have been experiencing in the workplace. "I don't believe they've had negative implications. I believe they're overwhelmingly positive. Because half of women have been sexually harassed. But the thing is it is not enough. It is really important not to harass anyone. But that's pretty basic. We also need to not be ignored," she stated. While men may be feeling uncomfortable, putting an unrealistic amount of distance between themselves and female coworkers is more harmful to all parties than it is beneficial. Men cannot avoid working with women and vice versa. Creating such a hostile environment is also detrimental to any business as productivity and communication will significantly decrease.

The fear or being wrongfully accused of sexual harassment is a legitimate fear that deserves recognition and understanding. However, restricting interactions with women in the workplace is not a sensible solution as it can have negatively impact a woman's career. Companies are in need of proper training and resources to help both men and women understand what is appropriate workplace behavior. Refraining from physical interactions, commenting on physical appearance, making lewd or sexist jokes and inquiring about personal information are also beneficial steps towards respecting your colleagues' personal space. There is still much work to be done in order to create safe work environments, but with more and more women speaking up and taking on higher positions, women can feel safer and hopefully have less contributions to make to the #MeToo movement.