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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.

Culture

A Modern Day Witch Hunt: How Caster Semenya's Gender Became A Hot Topic In The Media

Gender divisions in sports have primarily served to keep women out of what has always been believed to be a male domain. The idea of women participating alongside men has been regarded with contempt under the belief that women were made physically inferior.


Within their own division, women have reached new heights, received accolades for outstanding physical performance and endurance, and have proven themselves to be as capable of athletic excellence as men. In spite of women's collective fight to be recognized as equals to their male counterparts, female athletes must now prove their womanhood in order to compete alongside their own gender.

That has been the reality for Caster Semenya, a South African Olympic champion, who has been at the center of the latest gender discrimination debate across the world. After crushing her competition in the women's 800-meter dash in 2016, Semenya was subjected to scrutiny from her peers based upon her physical appearance, calling her gender into question. Despite setting a new national record for South Africa and attaining the title of fifth fastest woman in Olympic history, Semenya's success was quickly brushed aside as she became a spectacle for all the wrong reasons.

Semenya's gender became a hot topic among reporters as the Olympic champion was subjected to sex testing by the International Association of Athletics Federations (IAAF). According to Ruth Padawer from the New York Times, Semenya was forced to undergo relentless examination by gender experts to determine whether or not she was woman enough to compete as one. While the IAAF has never released the results of their testing, that did not stop the media from making irreverent speculations about the athlete's gender.

Moments after winning the Berlin World Athletics Championship in 2009, Semenya was faced with immediate backlash from fellow runners. Elisa Cusma who suffered a whopping defeat after finishing in sixth place, felt as though Semenya was too masculine to compete in a women's race. Cusma stated, "These kind of people should not run with us. For me, she is not a woman. She's a man." While her statement proved insensitive enough, her perspective was acknowledged and appeared to be a mutually belief among the other white female competitors.

Fast forward to 2018, the IAAF issued new Eligibility Regulations for Female Classification (Athlete with Differences of Sexual Development) that apply to events from 400m to the mile, including 400m hurdles races, 800m, and 1500m. The regulations created by the IAAF state that an athlete must be recognized at law as either female or intersex, she must reduce her testosterone level to below 5 nmol/L continuously for the duration of six months, and she must maintain her testosterone levels to remain below 5 nmol/L during and after competing so long as she wishes to be eligible to compete in any future events. It is believed that these new rules have been put into effect to specifically target Semenya given her history of being the most recent athlete to face this sort of discrimination.

With these regulations put into effect, in combination with the lack of information about whether or not Semenya is biologically a female of male, society has seemed to come to the conclusion that Semenya is intersex, meaning she was born with any variation of characteristics, chromosomes, gonads, sex hormones, or genitals. After her initial testing, there had been alleged leaks to media outlets such as Australia's Daily Telegraph newspaper which stated that Semenya's results proved that her testosterone levels were too high. This information, while not credible, has been widely accepted as fact. Whether or not Semenya is intersex, society appears to be missing the point that no one is entitled to this information. Running off their newfound acceptance that the Olympic champion is intersex, it calls into question whether her elevated levels of testosterone makes her a man.

The IAAF published a study concluding that higher levels of testosterone do, in fact, contribute to the level of performance in track and field. However, higher testosterone levels have never been the sole determining factor for sex or gender. There are conditions that affect women, such as PCOS, in which the ovaries produce extra amounts of testosterone. However, those women never have their womanhood called into question, nor should they—and neither should Semenya.

Every aspect of the issue surrounding Semenya's body has been deplorable, to say the least. However, there has not been enough recognition as to how invasive and degrading sex testing actually is. For any woman, at any age, to have her body forcibly examined and studied like a science project by "experts" is humiliating and unethical. Under no circumstances have Semenya's health or well-being been considered upon discovering that her body allegedly produces an excessive amount of testosterone. For the sake of an organization, for the comfort of white female athletes who felt as though Semenya's gender was an unfair advantage against them, Semenya and other women like her, must undergo hormone treatment to reduce their performance to that of which women are expected to perform at. Yet some women within the athletic community are unphased by this direct attempt to further prove women as inferior athletes.

As difficult as this global invasion of privacy has been for the athlete, the humiliation and sense of violation is felt by her people in South Africa. Writer and activist, Kari, reported that Semenya has had the country's undying support since her first global appearance in 2009. Even after the IAAF released their new regulations, South Africans have refuted their accusations. Kari stated, "The Minister of Sports and Recreation and the Africa National Congress, South Africa's ruling party labeled the decision as anti-sport, racist, and homophobic." It is no secret that the build and appearance of Black women have always been met with racist and sexist commentary. Because Black women have never managed to fit into the European standard of beauty catered to and in favor of white women, the accusations of Semenya appearing too masculine were unsurprising.

Despite the countless injustices Semenya has faced over the years, she remains as determined as ever to return to track and field and compete amongst women as the woman she is. Her fight against the IAAF's regulations continues as the Olympic champion has been receiving and outpour of support in wake of the Association's decision. Semenya is determined to run again, win again, and set new and inclusive standards for women's sports.