I must be nuts
I was a founder and while my founder story didn't end in a glamorous, headline-worthy exit story, it did end in a career.
I have wanted to share my story as an entrepreneur. The good, the bad, the ugly, and the truth about my personal struggles to leave what I worked so hard to build for ten years.
Everyone’s story is different. Some can quickly go from one venture to another and some struggle more than others.
Getting started can be the hardest part so I am sharing my journey with you. I hope to connect with and help other entrepreneurs who may be facing similar challenges by sharing the things I’ve learned along the way.
I started Nuts About Granola at the ripe old age of 20. Tons of experience under my belt of course (very much joking!). The early days were filled with a tremendous amount of learning. Learning from everyone and everything I could about the industry. Back in 2009, there wasn’t the level of resources available today and it has been awesome to see the progression.
We had very little funding or resources (essentially credit cards that didn’t have a lot of credit) but I was young and eager to make things work. We started off in a rental Firehall kitchen and graduated to a shared kitchen about a year after starting. Everything was made by hand by a small but amazing team (not in a Christmas cookie baking marathon with your family way, but ingredients come in 50-60 lb increments and should have been automated but we couldn’t afford it way). We were as scrappy as it got wearing every hat and working crazy hours like a lot of companies starting out (only my 20-year-old self would attempt the hours and level of physical activity that was required, certainly not my current day self). I’ll save the good stories for my book but here is one of my favorites.
We used a rental kitchen when we first started and rented a storage space up the alleyway in downtown York, Pa. When we produced granola (about 1,000 lbs at a time), we would hand load a pallet and cart, push the raw materials down the alleyway and then cart the finished goods back up, all by hand (that's 1000 lbs both ways!). It was quite the workout and scene from an outsider's perspective! Making granola was what eventually got me into CrossFit. Knowing what I know now, it was totally nuts and would make my food production friends’ heads explode (I will not post the alleyway photos I dug up from Facebook).
What would I have done differently? Many things, but what stands out the most when I look back is that we did not invest in branding early enough. Partially because we didn’t have the funding and partially because we didn’t have a sense of how critical brand development was in the space we were entering. By the time we did realize, our business had shifted focus but more on that later. Although, I still love our “Are You Nuts?” t-shirts. So simple but so effective and we always got a lot of fun responses!
My nutty learnings | I was deeply involved with all aspects of the development of the company. Like a lot of founders, I became the face of the company and my personal brand became intertwined with the company brand. A lot of successful brands have used this strategy, but it does start to overshadow your identity outside of the organization. Be cautious and intentional to keep your personal identity and self-worth separated from the outcome of your work or business.
Early DAys
About 4 years into the company it was apparent that we didn’t just have a nutty idea, but a thriving business. We really started to shift our focus away from the branded space and into private label and co-manufacturing. Why? It paid the bills and the demand was growing more than our branded business. We were a self-funded company using traditional borrowing backed by our personal assets which became a challenge when you're 24 and have no personal assets (banks thought I was nuts as well). We ended up partnering with a third party to help build out a facility but unfortunately, after opening, the deal changed and we needed to find a solution, fast (we built up a pipeline of business and had nowhere to make it).
We kicked it into high gear and found a space that semi-worked for us and trucked along (this building was by far our nuttiest attempt to grow and not in a peanut butter kind of way but a burnt toasted nuts kind of way). It was, however, the first time we had everything under one roof (a leaky one but in the same building) and the first time we felt in control of our operations.
We ran into roadblock after roadblock with the space we were in (ultimately the building was not designed to do what we needed). Right about the time we were building our business, the food safety requirements of co-packers were also ramping up (SQF compliant for example). It was a chicken and egg situation; get a compliant facility and programs to get the customers, and get the customers to afford the building and programs. Eventually, after several years of trying, our eggs were rubbery and scrambled so we decided to shut down the facility and partner with a company in Canada for production.
What would I have done differently? We pushed really hard to get the funding we needed to invest in a building and it didn’t work out. We ended up actually renting a restaurant that was connected to a banquet hall and outfitted it with a kitchen and storage space (burnt toasted nuts building). Not ideal, but it was what we could do at the time. Looking back, I think if we had found the right partners it would have changed the company's direction, but sometimes the timing just isn’t right.
My nutty learnings | I had several mentors and professionals in the local community who went out of their way to help me. We would not have survived this time period if it wasn’t for the community and the support they gave us. In return, we also tried to give back. As entrepreneurs and start-ups, networking is so crucial both on and offline. Don’t forget about your own backyard when thinking about support and growth plans. There is nothing wrong with being a strong regional player and focusing your efforts where you can support them locally.
Growing Pains
When I first started the company, I remember going to my very first Fancy Food Show in New York as an attendee and was completely blown away. I was in awe of the booths, the energy, and the show as a whole. I knew one day we would be there when we were ready. About five years later, we exhibited at our very first show and got a half booth. Everyone thought I was nuts when I turned the design sideways to maximize the space but it worked! We launched our Granola Basics that year, a baking mix for granola that totally flopped. I still think it's a great idea that someone reading this should launch in a much less nutty way than we did.
We exhibited at the Fancy Food Show every year after. A few years later we had the magical moment every young brand who exhibits at a show dreams and hopes for, a Costco buyer stopped by our booth and fell in love with one of our product lines. That was it, we made it! (or so we thought). It started an in-depth conversation, presentation and sampling process that spanned months (for some this is years). At this point, we were fully up and running with our Canadian partner so we had the ability to produce the volume, however, this product had not been scaled and vetted for the level of production needed (totally nuts idea alert here!).
All the bidding was done, samples were approved and now we were just waiting for final approval. One evening while working on my computer, an email appeared in my inbox. I immediately burst into tears (complete ugly cry, uncontrollable emotion). We were approved by Costco (hands down the nuttiest email I received to date). I called my mom, who was my business partner, could barely talk and she thought something was wrong. I finally was able to muster the news and we were both so excited.
That started a multi-month process of flying back and forth to Canada to scale production and working with designers and marketing agencies to get ready for the launch. When we launched, our entire network and community were so supportive. We did a selfie campaign on social media and it brought me so much joy seeing friends, family, and complete strangers posting pictures next to our product. It was some of the most stressful few months of my time with the company but also the most rewarding and yes, insanely nuts.
We launched but it wasn’t perfect and ultimately we didn’t get a reorder. The product was the hardest, most nontraditional recipe we had. Despite the trialing, there were some inconsistencies we had to work through (along with weather, bag delays, misunderstanding weight limits of international shipping, sleepless nights, mental breakdowns at family functions, and others that I am sure I am forgetting because I blocked it out). However, it did give us financial stability and a level of cash we had never had before.
What would I have done differently? Test, test, and test some more. You only get one chance at a first impression with a customer and a buyer. I would always say, creating a product is art and scaling is science (there is some of both in each but going for the primary factor). You can’t prevent everything (like a heat wave in Canada) but having the right team in place is crucial when looking to take production to the next level (shameless plug and foreshadowing for Future Awaits).
My nutty learnings | It took eight years to get our Costco deal. Not eight years of working on it but eight years of working towards it. Opportunities come our way every day, but we can only see and capture the opportunities we are ready for. Try not to get frustrated if someone says no. They might be doing you a favor. Instead, find out why, improve, and get ready for the next nutty opportunity that is better suited for you.
Big Break
After Costco, we had choices. We could go in so many directions: Do we finally open a “real” facility? Do we refocus on our brand? Do we just cash out? All ideas and options were on the table (including an elaborate trip to a tropical island that we quickly shot down but sounded nice). We weighed all of our options and potential outcomes and decided to go in the direction of refocusing on our brand after meeting a group of ex-CPG executives who wanted to get involved (word of caution to budding entrepreneurs, CPG titles do not necessarily translate well to scrappy start-ups).
We knew Nuts About Granola was limited to granola (I didn’t think of that when I started) and when we were ready to focus on our brand we realized no store or consumer needed another granola brand. Bear Naked opened the granola floodgates and the category’s prime had passed despite all the variations we had: traditional, grain-free, and savory. As a result, we went through a long process of determining how we wanted to position our brand so we could introduce non-granola products.
It was a risk. Nuts About Granola had been around for 8 years and was known as a regional brand. A rebrand would position the company to expand nationally outside of the granola set under one name (we had three brands at that point: Nuts About Granola, Sarah’s Savory Snacks, and Forager). We needed a universal brand to launch new products that fit in the marketplace. That brand was Sarah’s Sweet and Savory Snacks.
Once we decided on the new name, we began the process of rebranding everything that had been created over the last eight years (you have to be slightly nuts to go through a comprehensive rebranding). Like most things we did, the rebranding was on a tight budget and I got to use the design skills I built up over the years to speed up the timeline (including laying on the floor for 8 hours making meticulous piles of granola for the bag photos).
To this day, I am still extremely proud of how the rebranding turned out. We were ready to launch new products and forge ahead with a bright future (or so I thought).
What would I have done differently? We didn’t launch any new products when we released the rebranding because we were very focused on getting the branding right. Looking back, I would have tried to gather more resources to launch a new product at the same time as the brand reveal. The whole point of the rebranding was to launch new products, so spending less time on legacy products and more time on new products would have been the better route.
My nutty learnings | Rebranding is no easy feat. Having a vision and clear purpose without wavering is key to a successful rebrand (and an amazing design team of course). I was on the fence for a long time about whether or not it was the right decision to rebrand. Ultimately, it would give us the best chance to grow the business so we went for it. Try not to spend too much time dwelling on decisions if your gut is telling you to take a chance.
Rebranding
Heading into the rebranding process, I met a group of industry veterans (which I refer to as the “CPGers”) that were interested in getting involved to help us grow the company. After talking for many months about what that would look like we came to a working agreement to get us through the rebranding process. That agreement was working towards an equity partnership.
Over eight months, we worked to launch Sarah’s Snacks and gain placements in retail. Even though we did the rebranding on a tight budget, replacing all of your assets is still expensive. We used a combination of cash and our line of credit to fund the rebranding, the CPGers and updated everything (like our website, packaging, signage, photography, social media, in-store displays, and the list goes on). We still had no outside investment at this point (we were old school which is now cool again).
I remember the day very clearly. The CPGers and I were out for a grocery store tour and sat down to grab lunch. Then the news broke that the deal we had been working on for eight months was off. Just like that, done. I was in total shock and didn’t have much to say at the time. I went home to process everything trying to hide my disbelief but I knew what just happened and what it meant for the future of the company.
The news broke shortly before Christmas and my husband and I already had a trip booked to Florida to get away from the cold Pennsylvania winter. I think I spent most of the trip just staring into the abyss not knowing what to do. We had a planning meeting all set for the new year and all I could think about was “what the heck am I going to tell everyone”.
At the meeting, I presented a plan that floated us through the Summer Fancy Foods show in June (6-month plan). We had several key prospects in the pipeline we had to close or we were going to run out of cash. I went home from that meeting and had a full-blown panic attack. It was so bad that the neighbors we didn’t even know were knocking on the door to see if everything was OK. At that point, I knew something needed to change.
What would I have done differently? I have debated this for a long time inside my head. Did I have too much trust? Was my decision to try to grow the brand completely wrong? So many questions from every angle of the situation. At the end of the day, we decided to invest in the growth of the company and the deal and timing didn’t work out. We leveraged ourselves too much heading into the investment so when the deal fell through there wasn’t enough runway to grow the brand.
My nutty learnings | As entrepreneurs, the weight of the world can feel like it is on your shoulders. During high times of stress, make sure you have a solid support system and people that can pick you back up when you fall. I was fortunate enough to have my family and could not be more grateful looking back. Take the time you need when the heat is turned up.
Decision Day
After the planning meeting, we went to work implementing our strategy. The months flew by and June was there before we knew it. None of the deals we were working on closed by June for one reason or another (in reality the sales cycle was longer than 6 months). I had a bad feeling leading into the Summer Fancy Food Show. That year (2018) was the worst show we had ever had since starting to exhibit (low attendance and no qualified leads). You knew it was bad when there was no line at the women’s bathroom during peak hours. At the end of the show, we packed up to head home and I knew on the drive that it was over.
When I got back from the show, I was devastated and at a complete loss for what to do next. I was exhausted, mentally drained, and completely broke. I spent the last ten years of my life working day and night (weekends and holidays) to keep the company going. Was it worth continuing? Was the market giving us a sign that we weren’t a fit? Should my mom and I refinance our houses? (it would have been a tight squeeze moving into my sister’s house!) I had to stick to my original plan: if we didn’t hit our metrics by the end of June 2018, I needed to exit despite how painful it was going to be.
I contacted my longtime mentor and we started the process of determining what an exit would look like (I can’t even begin to express my gratitude for his help during this process because I was a mess). At first, we talked about a shutdown. We didn’t think selling was an option at that point because there wasn’t much to package, especially with me wanting to exit. There wasn’t enough time to grow our new brand and product line to make it attractive and without the incoming investment, we didn’t have the runway or cash to fund it ourselves. After meeting with my business partner (who is also my mom) it was clear that she wanted to keep the company going. Our plan quickly went from a shutdown to a downsize and transition.
I knew I needed to create a firm timeline and plan for the transition. I gave myself four months to get the company in order so I could hand it off (organizing ten years of files is no joke). We worked diligently on every aspect of the business to cut out what we didn’t need or couldn’t handle and create a framework that would be successful on a smaller scale. My mom and I built the company together over ten years and the hardest part of the transition was knowing in the end that we were no longer going to work together. In all honesty, it was one of the hardest decisions and most emotional periods of my life.
What would I have done differently? I could have stayed and pushed through just like every other year, but this time was different. I was completely burnt out and lost hope that it was ever going to get any better. The company and I had survived a lot of turmoil before, but I wanted a different future and I no longer believed I could achieve that future if I stayed. The only thing I would have done differently is to seek help sooner to deal with the grief and emotional impact the exit had on me, but more on that in Chapter Three.
My nutty learnings | Everyone has a different breaking point and metrics they use to determine success. When the risk starts to far exceed the reward, you know something is off balance. Leaving was emotional but it was not an emotional decision. It was very calculated and fact-driven despite the difficulty.
Exiting
When the news broke of my exit there was a headline in one of the food industry newsletters titled “Sarah’s Snacks loses Sarah”. I spent my entire 20s and built my whole life around being “Granola Girl”, a business owner, and growing our company. Now what?
Not many people, including myself for a very long time, want to talk about what it feels like to shut down (or in my case leave) a company that they spent so much time, money, and energy on because it is painful (which is one of the reasons I felt compelled to share). I felt like a failure no matter how many times anyone told me that I shouldn’t. I didn’t talk about what it felt like to tell our employees (some family and some that felt like family) that they no longer had a job. I didn’t talk about the personal financial burden I faced because despite leaving, all of the debt was tied to me personally. It sucks, it's hard, and statistically more people face this reality than those who succeed.
So I shoved all my feelings, self-identity, and emotions into a box and hid them under my bed (100% not recommended by the way). I put my head down, went into a form of hiding, and got a job.
I avoided talking about my exit as much as possible. It was too raw and painful to talk about so I didn’t. I didn’t want to go on LinkedIn and see all my friends still working away at their dreams (no offense, I truly love and cheer for you all it was just how I felt at the moment). I didn’t want to go to networking events and talk to people who didn’t know I left because it would trigger a flood of emotions. I didn’t want to bake granola ever again (I had just recently made granola at home for the first time in 5 years). I didn’t know who I was or wanted to be anymore.
I remained this way for over two years. I felt a bit like a zombie and not myself, or at least the version of myself that I wanted to be. Three years in I knew, just like when I knew I had to leave, that I needed help to rediscover who I was and who I wanted to be.
What would I have done differently? As mentioned in an earlier post, I would have sought help sooner rather than shove everything in a box under my bed. It is a lot to unpack and not something recommended to try to do on your own. I didn’t realize that until I got to the other side.
My nutty learnings | It is really easy to get emotionally attached and personally entwined into your brand. A lot of passion, hours, and pride go into building a brand and a company. If I were to do it all over again, I would have to be a lot more diligent and careful to keep myself at arm's length. It takes awareness and discipline but worth it in the long run.
Self-identity Crisis
So who was I without Sarah’s Snacks? I set out on a journey to find out. Over a year of coaching and soul searching (plus lots of tears & emotions) I slowly but surely found myself again. I started to regain confidence and define how I wanted to show up in this world.
For the first time since I started Nuts About Granola in 2008 (15 years later), I came to another crossroads in my career. I left a job that wasn’t a good fit for me and found myself with time to clear my head and digest everything that had happened. When I left, starting another company crossed my mind but didn’t seem feasible.
The desire to branch out on my own and create a company that provides value to the community I grew so fond of continued to get stronger. The more I networked with peers, the more my concept and confidence were validated, so I decided to go for it and launch DRIVN Food & Beverage, a food and beverage agency focused on sales and operational implementation for brands and co-manufacturers.
The End. (just kidding)
The first chapter of my next journey is just beginning!
I felt compelled to share my real story as an entrepreneur because each person’s journey is unique, special, and filled with more ups and downs than one could ever imagine. I empathize with the struggles of starting and running a company but also with the joys and successes. My original journey didn’t end the way my 20-year-old self envisioned, but it did set me up for a bright future.
If you are an (or budding) entrepreneur and reading this, I am looking forward to connecting with you, cheering for you, supporting your products, and maybe one day helping you grow.
Thanks for reading! (officially the end)
- Sarah
