Posts tagged Business

Money Tips on how to buy an online business with entrepreneur Tonya Rapley

Who needs a start-up when you can buy your way into a business? My Fab Finance founder Tonya Rapley shares why and how she decided to buy an online business and her tips on what she would and would not do differently.

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Money Tips On Buying An Online Business

Learn the types of questions you should ask before buying a business.
Learn how Tonya increased the average order value and how you can do the same.
Learn what kind of things you can do in the beginning to prepare for the growth that comes later.
Why it’s so important to have a marketing strategy for your business.

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Full Transcript:

Bobbi Rebell:
I hope you guys are all celebrating some big adulting milestones this season. And you know what? Finding the perfect gift for those celebrations can be kind of tough. I have the solution over at grownupgear.com. We have adorable hats, totes, mugs, pillows, tees, and seriously the most cozy and comfortable sweatshirts. They're all on grownupgear.com and all at affordable prices. We even now have digital gift certificates if you can't decide. Use code grownup for 15% off your first order. Buying from our small business helps to support this free podcast. And you know what? We really appreciate it. Thanks guys.

Tonya Rapley:
They were taking a significant loss. They were selling these loofahs for 4.99 and doing free shipping. Ridiculous.

Bobbi Rebell:
You're listening to money tips for financial grownups with me, certified financial planner Bobbi Rebell, author of How to Be a Financial Grownup. And you know what? When it comes to money, being grownup is hard, but together we've got this.

Bobbi Rebell:
Hi, friends. Okay, we all know starting a business is not easy, but the truth is you don't have to start a business to be a business owner. There's a whole lot of options out there if you want to buy your way in. But there's a lot you need to know before you get started, and we're going to share some of the secrets that you need to know.

Bobbi Rebell:
My guest today is Tonya Rapley. You may know her as the co-host of one of the shows we featured in our summer watch party, Going From Broke. We were a little obsessed with it. Anyway, it's executive produced by Ashton Kutcher. Check it out on the Crackle channel. Tonya is also the founder of My Fab Finance and the author of The Money Manual. She is a big deal, guys. She's been featured everywhere from Vogue, Good Morning America, and The Today Show. But what you probably don't know is that she's also a holistic wellness business owner. In 2019 Tonya purchased Club Loofah, an inclusive self-care brand focused on inspiring and supporting regenerative practices for all. She mentioned this to me in passing recently, so I roped her into a podcast interview to tell us more about buying a business and basically how it all works. It's really interesting, guys. Here is Tonya Rapley.

Bobbi Rebell:
Tonya Rapley, you are a financial grownup. Welcome to the podcast.

Tonya Rapley:
Thank you. I'm excited.

Bobbi Rebell:
I am so excited to have you. Long time overdue. I loved having you in my book and now here. You are the founder of My Fab Finance, which has an incredible community as well. You're host of Going From Broke, which was one of my favorite shows that I caught up on this summer. We highlighted it in our summer watch series. You have the 30-day shift program. And what we're going to talk about is your new online business, Club Loofah. Welcome, welcome.

Tonya Rapley:
Thank you so much. It sounds like I do so many things, and I do.

Bobbi Rebell:
So many things, and wife and mother and all the things. Before we get into your online business, tell us a little bit about My Fab Finance.

Tonya Rapley:
Yeah, I mean, My Fab Finance, I started in 2013. It was essentially my accountability partner, as I decided that I was tired of being inconvenienced by being financially insecure. My goal at the time was to improve my credit score so that I could get my own apartment in New York City and hopefully get free clothes from Macy's. I just wanted free clothes. I was like, "Maybe they'll see what I'm doing and send me free clothes."

Bobbi Rebell:
Free clothes, always a noble cause.

Tonya Rapley:
You know, you know. And here we are, I guess. Well, I've been a full-time entrepreneur. I was able to transition into doing My Fab Finance full-time in 2015. We've created so many different elements of My Fab Finance and different iterations, but today our goal is to create a safe space for women to talk about money, as well as we have a mission of helping 1000 people achieve at least one financial goal that they're proud of.

Bobbi Rebell:
When we were doing our interview for my book, which is going to come out in the spring, which, guys, I'll talk about another time, you kind of mentioned, "Oh, by the way, yeah, I bought an online business." And so I wanted to bring you on the podcast, because you mentioned this oh so casually, like, "I'm doing 100 things, and by the way, I bought an online business," and then you move on to something else. I need to know about this. So a lot of people, they're home during this extended version, unfortunately, this extended pandemic that's so much longer than we thought we would be home. Of course it's good to start an online business, but not everyone has to start from scratch. Sometimes if you have the resources you could actually buy something and give yourself a jumpstart. And it sounds like that's what you did. So tell us about this decision to buy an online business and what you did. What is it?

Tonya Rapley:
Yeah. So as a financial educator, I realized that a lot of my income was service-based. It was based on my ability to show up to coach my audience and everything else, and I wanted something that was easier to scale. That's how I thought about it before I bought the business, easier to scale. I knew I did not want to come up with a new concept, create a new brand and everything else. And so my sister, who had just closed her Shopify store, asked me... She said, "I know you're interested in potentially purchasing another business. Have you checked out the Shopify exchange?" And I hadn't heard of it, but I went to check it out immediately. And she then sent me this company, Club Loofah. And she just typed, "I think that you could really do something with this. It's a great concept."

Tonya Rapley:
And so I started to look into it more, and I thought to myself, "Wow, this is a really good concept." It is essentially a bath subscription business, a bath tool subscription business, because most people don't realize that you're supposed to replace your loofah every three to four weeks. Your loofah, your sponge, whatever it is you use in a bathroom, before it starts smelling, before it starts crumbling, you're to replace it. So we reached out to the owner, and he was about to actually close the doors, because he hadn't had any bites or anyone that had... He had a few conversations, but no one that was really serious. [inaudible 00:06:09], "Hey, the money's in escrow. Let's do this." So we ended up buying the business from him. He was actually based in Riverside, California at that time. We were living in Los Angeles, so we drove up to Riverside with a U-Haul, got all the inventory that he had on him-

Bobbi Rebell:
Oh, right, so you actually have to take inventory, because I have-

Tonya Rapley:
It is not drop shipping. Yes.

Bobbi Rebell:
I do drop shipping for my grownup gear.

Tonya Rapley:
It is not drop shipping. We do not have a fulfillment center just right now. And so that's the thing. We got the items from them. We just started learning the e-commerce business when it came to loofahs. When we purchased the company, one of the things that was attractive to me was that it already had subscribers. It was a subscription business. So the day that we purchased the company, they had new orders, because it billed monthly.

Bobbi Rebell:
Wait, why was he selling it? Presumably... I would always be suspicious. If someone's selling a business, you kind of go, "Well, why?" Because maybe if it's a good business, why would he sell it? So I would be wondering, what are the red flags?

Tonya Rapley:
So the reason he was selling it actually was because he inherited the business from the previous owner. So there was a previous owner who started the business for her daughters because she wanted to teach her daughters entrepreneurship. Then her daughters lost interest in it, and she didn't have the capacity to manage it, but he was already onboard as the marketing officer, the chief marketing officer, so he bought it. He believed in the business, thought it was a good company. He took it over. But then his father passed away, and he decided that he didn't want to do things just because anymore. He wanted to live a more purpose-focused life.

Bobbi Rebell:
So I have not seen this site before you, but it has a really nice editorial focus, and that's something that that is one of your strengths. Tell us more about the changes that you then brought in.

Tonya Rapley:
Yeah. Thank you very much, because when I bought the company, it was very fun and kitschy, and one of the things we realized was, if we're going to compete with the Targets... And we're not going to compete with Target and Amazon. We cannot drive our prices low enough to compete with them, so we have to appeal to a different demographic, someone who value self-care, who is willing to invest in their self-care and what's a higher end feeling product. And so we rebranded to go for a higher end. And so now the products that we're rolling out are more luxury-focused, or they're items that you can't find in your drug store. That was very intentional. And we wanted to clean it up a little bit. The company was based in California, so it was very beachy, Hollister... Yeah.

Bobbi Rebell:
When you look back, what would you have done differently? Are there questions you would have asked that you would advise people that are looking to buy an online business that's already somewhat established... What should they go in knowing that you wish you knew?

Tonya Rapley:
Absolutely. So when I bought the company, [inaudible 00:08:55], "Okay, it's bringing in revenue. You have XYZ subscribers. Cool. All right. Yeah, let's do this." Now I would definitely ask about their average order value, because the average order value determines if you can run ads. From my perspective, I was thinking, "All right, we're going to buy this company, and we're going to run ads, and we're just going to blow this out the water." But in order for ads to make sense, your average order value needs to be above what your minimum ad spend is going to be, or what it costs to acquire a customer.

Tonya Rapley:
They were taking a significant loss. They were selling these loofahs for 4.99 and doing free shipping. Ridiculous. So one of the things we did when I came in was changed the shipping model. We now charge 2.99 for shipping. And then we also increased the price point on some of the items. We allow the loofah, the classic loofah, to be the loss leader, but we increased the price points on some of the other items and introduced higher-priced items to the store as well, so that average order value and just the opportunity to bundle products... There wasn't really a strong opportunity to bundle products. So now we're in the final stages of developing a body care line so that you can bundle your body care with your loofah, since it's it's all body care anyway. So that's one of the questions I definitely, definitely would have asked, is average order value.

Tonya Rapley:
The retention rate was pretty good. Their retention rate... And that's a question, especially if you're buying a subscription business. How long does your average customer stay around? And do you have any existing customer service infrastructure in place? Because he was handling customer service inquiries. I found very early that I hated that aspect of the business, and we ended up hiring someone, but it would have been nice if there was somebody that came along with the company. So any personnel that would come that know the business outside of us going and doing training with you is another question that I probably would have asked. Those are the two big things we had to change, was... The average order value was a killer early on, because the company was basically losing money.

Bobbi Rebell:
And you really didn't know that when you bought it.

Tonya Rapley:
No, I didn't, and I should have asked for stronger financials, but I think that [inaudible 00:10:55] I was like, "It's a subscription business. How bad could it be? It's not to the point where they're searching for customers every month. I bought the customers with the business. How bad could it be?" Yeah, I didn't do the math on that one, Bobbi. I didn't think like, "Okay, this is a 4.99 loofah, and they're charging nothing. Free shipping. How much is shipping?" But we addressed that, and within the first year we increase the average order value I think by like 32%.

Bobbi Rebell:
How did you do that?

Tonya Rapley:
We introduced a candle line, so most people were buying candles. And our candles are not... They're high-quality soy candles. Our candles were about 20... I think $28 for a candle. And so that definitely drives up, if you're buying a 4.99 loofah and a $28 candle. We introduced two higher end products, the ayate washcloth, and we actually just dropped our Japanese smoothing brush. So those aren't terribly expensive, but they're 10.99 and 11.99. And then we started adding bundle options. So when people checked out, we offer the upsell of a shower hook for people who don't have any hooks in their shower, so we offer that upsell. And then we also invited people to buy our family bundle, which was essentially four loofahs instead of one, just in case it's a family of four, and quite a few people decided to do that.

Bobbi Rebell:
Now, you mentioned you wanted something that you could scale. Are you still bundling at home? Who is packaging this stuff up? You said you had no fulfillment center.

Tonya Rapley:
Yeah, so we still have a fulfillment manager. We do have a storage facility where we keep the things, and we have a facility manager, our fulfillment manager. So we are very hands-on still in that process. I don't pack the loofahs anymore, my husband doesn't, but our fulfillment manager does. And she's great. She's awesome. And that's something we had to look at when we were considering if it makes sense for us to place our products in a fulfillment center, which [inaudible 00:12:42] take about $2.80 to $3 per product, and our average order value just could not sustain that yet.

Tonya Rapley:
So maybe when we roll out the body care line... Our body care line is sulfate-free, microbiome friendly, and we've been really intentional about the body cream that we're creating. And we have a non-abrasive exfoliant that we're also rolling out a non-abrasive skin exfoliant, so it's papaya extract and natural fruit extract to help with skin turnover and cell turnover. So I think that once we roll those out, we might be in the zone of being able to send it to a fulfillment center, but maybe not. We have to see how our fulfillment manager feels, because we'll keep those profit margins... We'll grow them as long as we can, and we'll minimize the money that we're spending as much as we can.

Bobbi Rebell:
And I am impressed, as someone that started a small online business during the pandemic. The amount of detail that you're going into is incredible. You know all of your numbers. What is your best advice, before we wrap up, for people that are considering buying an online business? You went basically to the Shopify exchange, and you can look for whoever's selling a Shopify site. Is that what you advise? And what else?

Tonya Rapley:
It's work. It's work. And decide what works for you, drop shipping, or whether you're going to do the order fulfillment yourself. But you also have to ask yourself, "Do I have the endurance to grow this?" Because I think a lot of times we hear about these overnight successes when it comes to shop owners. They get placed in Oprah's most favorite things list and everything else. But what happens if it doesn't? What is your marketing strategy? My main advice would be, have a sound marketing strategy for how you're going to acquire customers and keep your customers, because if you don't have customers, you don't have a business.

Bobbi Rebell:
So true and such good advice. Okay. We know everyone needs to go to Club Loofah for sure. Where else can people find you and find out more about you and My Fab Finance and the community there? And also you have a 30 day shift program.

Tonya Rapley:
Yeah. Yeah, because I don't have enough things going on, right, Bobbi?

Bobbi Rebell:
[crosstalk 00:14:44]. You need more.

Tonya Rapley:
So I decided to launch a personal coaching company, because a lot of women who didn't fall into the scope of work we do at My Fab Finance but wanted to know more about, "How do I confidently take on my next life phase?" And so I created a program, 30 day shift, for women who are looking to powerfully move into the direction of their next life shift. So that's at my personal platform. It's Tonya, T-O-N-Y-A, .rapley, or tonyarapley.com. If you go to that website, it actually has all of my companies. So it has a link to My Fab Finance. It has the link to Club Loofah. But if you're interested in Club Loofah, that website is actually loofah.club, so L-O-O-F-A-H.club.

Bobbi Rebell:
I didn't know that. That's another question though. You got to get the URL there. That's another thing you got to be asking. Wow.

Tonya Rapley:
Clubloofah.com is not available. And one of the things I wanted to do was make sure that we were in it for the long haul before I invested in buying the domain from someone else. Actually, after this interview, we're finally finalizing our trademark application, because the business was not trademarked, or they abandoned their previous trademark, so we're trademarking. So now that we've been in it for almost two years now, I'm in a phase like, "Okay, let's do all the things that we need to do and probably should have done." So I'm going to... Hopefully in the next year clubloofah.com will be ours. I'm like, "Who had a Club Loofah other than us?" I don't know.

Bobbi Rebell:
And they're just squatting on the name.

Tonya Rapley:
They're squatting, waiting for someone like me to come buy it from them. Because that's a big business too. Think about it. Buying and selling domains is actually a big business.

Bobbi Rebell:
It is a big business. And when I named Grownup Gear Grownup Gear, I looked very carefully at what was available before I named a company. So that's also something to really look at, whether you start a company or buy a company. Look at the domain names that the company owns, because that's really important.

Tonya Rapley:
That is. That is.

Bobbi Rebell:
Tonya, thank you so much. Oh, you didn't say your socials.

Tonya Rapley:
Oh. So My Fab Finance, that's M-Y-F-A-Bfinance.com. And then Tonya Rapley, so that's T-O-N-Y-A.rapley. And then Club Loofah is Club Loofah, C-L-U-B L-O-O-F-A-H.

Bobbi Rebell:
Awesome. So you have that on social media.

Tonya Rapley:
Thank goodness.

Bobbi Rebell:
Thank goodness.

Tonya Rapley:
Yeah, we have that.

Bobbi Rebell:
Good. Thanks so much.

Tonya Rapley:
Thank you, Bobbi.

Bobbi Rebell:
Okay, my friends, there was a lot there, so much good stuff. I want to remind everyone full transcripts are available. Just go to my website, bobbirebell.com. Go to the podcast section. You'll get the show notes and the transcripts.

Bobbi Rebell:
My take here is that whether you're going to start a business or you're going to buy a business, you need to know that it's going to be a lot of work, probably more than you expect, probably lots of surprises, and probably going to cost you a lot more than that purchase price. Yes, Tonya had customers. They were subscription-based. That's all good. But it wasn't a profitable business, and then she had to deal with that. You need a lot of, frankly, capital runway to manage a business when you're dealing with it initially and you don't really know what's coming at you. So make sure you ask all the questions you need to ask and that you're happy with the answers. The good news with buying a business is you do kind of get a headstart. She already had customers. That's great. You start in the middle. You have a concept there. But you also have challenges that were created by someone else, and you may not be aware of all of them, and they come at you a lot faster because you're already sort of in the middle. Make sure you're ready.

Bobbi Rebell:
If you enjoyed this episode, please hit that follow or subscribe button wherever you get your podcasts. And of course, reviews are so appreciated. I read every one, and they mean the world to me. Let me know what topics you want me to cover. DM me. And please follow me also on Instagram at bobbirebell1. And go to my website if you want to get on my newsletter list. Just as I said, bobbirebell.com. Pretty simple, guys.

Bobbi Rebell:
Please, support Tonya. She is amazing. Check out Club Loofah. Follow it on all the socials. And, of course, My Fab Finance and Tonya Rapley as well. Say thanks to Tonya for sharing her journey and for helping us all be financial grownups

Bobbi Rebell:
Money Tips for Financial Grownups is a production of BRK Media, LLC. Editing and production by Steve Stewart. Guest coordination, content creation, social media support, and show notes by Ashley Well. You can find the podcast show notes, which include links to resources mentioned in the show as well as show transcripts, by going to my website, bobbirebell.com. You can also find an incredible library of 100s of previous episodes to help you on your journey as a financial grownup.

Bobbi Rebell:
The podcast and tons of complementary resources associated with the podcast is brought to you for free, but I need to have your support in return. Here's how you can do that. First, connect with me on social media at bobbirebell1 on Instagram and Bobbi Rebell on both Twitter and on Clubhouse, where you can join my Money Tips for Grownups club. Second, share this podcast on social media and tag me so I can thank you. You can also leave a review on Apple Podcasts. Reading each one means the world to me, and you know what? It really motivates others to subscribe. You can also support our merch shop, grownupgear.com, by picking out fun gifts for your grownup friends and treating yourself as well. And most of all, help your friends on their journey to being financial grownups by encouraging them to subscribe to the podcast. Together, we got this. Thank you for your time and for the kind words so many of you send my way. See you next time. And thank you for supporting Money Tips for Financial Grownups.

Financial Grownup Guide: 5 essential ways to create a successful business from anywhere with Entrepreneur Cait Scudder

Entrepreneur coach Cait Scudder built a 6 figure business while living abroad overcoming numerous obstacles. She shares her specific strategies to help build a grownup business focused on sustainable product growth and revenue streams.

5 essential ways to create a successful business

Cait Scudder:
Well, thank you so much for having me. It's great to be here and I'm so excited to be talking about this. I think for so many entrepreneurs, creating a successful business, whether you're running it from a laptop or abroad or whether you're running it out of your living room, feels like it's this enigmatic thing. So, I'm really excited to break down some really tangible steps to help your listeners apply it to their own businesses.

Bobbi Rebell:
Yeah, and I'm a little bit of a snob about this. I don't like all this mumbo jumbo. You are specific, and focused, and I love that. So, you've got five tips and then we have some other special stuff after this. So, stick with us, guys. Number one is basically, figure out the problem that you're going to solve for people, right?

Cait Scudder:
Absolutely. So, the first thing I would say if you are looking to build a six-figure business, and scale it to multiple six figures and beyond, is you have to be so crystal clear on the problem that you help people solve. It is not enough to just say, "Well, I want to be a consultant for leaders" or "I want to be a health coach" or whatever other niche that you're in. Dial that right in to get so specifically clear on the problem that you help your clients solve and how you do that with the solution that you offer.

Bobbi Rebell:
So, what would be an example of a client that had this problem and how do they really figure out what problem they were solving for?

Cait Scudder:
So, one of the exercises that I lead my clients through, let's take a health-coaching coach, for example. If you are looking to build out a health-coaching business, somebody who helps their clients achieve either weight loss or higher levels of energy, the problem that you might help somebody solve is losing 15 pounds or losing 20 pounds. What you need to do if you want to dial that right in and then be able to build a compelling brand and a compelling message from that is, get super clear. Not only on that problem point as if it's a bullet point in your notebook, but what's the pain that somebody is experiencing as a result of having that problem? So, one of the things that I think happens a lot is entrepreneurs get stuck in this messaging spiral of, well, I'm listing out my client's problems, but they're not responding.

Cait Scudder:
I think the biggest thing that happens when we do that is that we're not actually speaking to the pain, the ripple effect pain I call it, that those problems caused. So, for example, if a client is struggling with low energy, they're feeling overweight, they're feeling not confident in their bodies, how is that actually playing out in their lives? Maybe they can't walk up the stairs without running out of breath. Maybe they can't bend over to pick up their grandchild and not feel like they have to sit down. So, really dialing your messaging straight in to the problem that you help people solve. The pain that it's going to help them get out of in painting the picture and creating offers that help somebody do that in a step-by-step way is such a powerful step for your business and for your marketing.

Bobbi Rebell:
Which brings us to your second tip, which is to figure out what exactly the offer is.

Cait Scudder:
Exactly. So, the second thing that you need to do is build out an offer. I always say to my clients, especially who offer their services, so consultants, any kind of strategists is, it's very, very important to be able to build a product in your client's mind as if it were a tangible product that you could put on top of your desk. So, if you're offering a six-month consultancy package or a retainer offer, what does that look like? What's the result that somebody is going to get? And the way that you want to think about your offers is in two different pieces. The first is the framework, and the second are the features. So, your framework might look like, for example, in my business coaching consultancy, I have a framework that's based on three different things: energy, strategy, and sales. When you can nail all three of those as a business owner, you are golden.

Cait Scudder:
So, the energy piece is, what does your vibe put out? How are you attracting your ideal client, how you are attracting your audience. The second piece of strategy is, what are the offers that you're building out? How are we marketing you in a way that is magnetic in a way that draws your people in? And thirdly, in sales, obviously, we need to make sales if we're going to be in business. So, what I really recommend entrepreneurs to do if they're struggling to build out an offer, is think about what's the framework that you move somebody through and what are the features? How long is your package for? What does it include? What's the scope of work? And when you can be so specifically clear on the process that you move somebody through, the framework, and the way that you do that in the tangible breakdown, the features, that's when you really have a rock-solid offer to bring to the market.

Bobbi Rebell:
The third thing is something I am so uncomfortable with myself, get comfortable with marketing. It is so hard, Cait. I feel this personally.

Cait Scudder:
Really, Bobbi? You're definitely not alone. And I have to be honest, at the beginning when I started my business, I felt so uncomfortable with it. I felt like, "Hang on, squawking about all of this stuff that I do for other people like this is so uncomfortable." Here's what I've come to see it as. When you are marketing your services or your products or your free content even, because let's be real, promoting a podcast or promoting a blog article, all of that is marketing. You are educating and you are empowering your audience with pieces of content, with pieces of information, and pieces of education that help them move towards a result. And I think that when you can have that internal shift as an entrepreneur from, "Oh, this is so self-indulgent. Who would want to read about this? This is so self-aggrandizing." And really flip that script to say, "Hey, me showing up and waving this flag loud and proud is helping somebody else who's seeing this achieve a result," and that is such an empowered place both for you and for your audience.

Bobbi Rebell:
The fourth one, also a pain point for me, confidence in selling. I always struggle with this, Cait. I really do.

Cait Scudder:
You know what? I hear you and especially for women, Bobbi, I personally think that we are not necessarily taught to move into a sales conversation or move into a sales context, with the same level of permission and confidence that for whatever reason I feel like men just intrinsically feel. I'm sure that's not the case for everybody, but I definitely know so many women who struggle with this piece.

Cait Scudder:
Here's my take on this. When you sell somebody your product or your service, you are giving them the pathway to a solution. If you don't sell, if you don't speak about what your offer is, if you never let somebody know how they can work with you and what's possible as a result, you are literally robbing from them the possibility for getting that result and you helping them. And I think when you really flip that script and look at, "Hang on, this is not just some selfish manipulative, greasy car salesman tactic. This is me showcasing the possibility that somebody has to achieve this solution with me." You really put yourself in the game, and you give your market confidence to buy from you.

Bobbi Rebell:
And the fifth thing is, be consistent.

Cait Scudder:
That is absolutely right. I think that there is no... One of the best pieces of advice, Bobbi, that I've ever been given in entrepreneurship is, don't get too high and don't get too low. When it comes to being your own boss and running things your own way, creating your own schedule, running your own team, there's so many opportunities to get knocked off your horse to feel like you just want to throw in the towel and crawl back into bed and you just don't want to do it. And that is the biggest thing that I think swipes entrepreneurs off their path is, feeling like I had a good day, I want to show up, had a bad day, I don't want to show up. Guys, if you take one thing away from this, let it be this. You are going to have great days. You're going to have hard days. It's your commitment to staying the course. That is the thing that's going to see you through. Just remember, you cannot fail if you just keep going.

Bobbi Rebell:
I also want you to share, it's kind of a bonus for our listeners. You have a lot of everyday things that you do. Some things I do too that really help in terms of the day-to-day, like the way that you schedule your week, which is something I do as well.

Cait Scudder:
Yes, absolutely. So, one of the best hacks, oh my gosh, this just saves so much time, so much mental bandwidth for me is scheduling a CEO day. So, on Mondays, I mean, I'm on the phone a lot of the time, whether it's on the phone with clients, group calls, individual calls, collaborators, I'm on the phone a lot. Mondays are my CEO day, which means I don't take any calls. Monday is my day to work completely on my business, and not be in anybody else's business. And that has been so helpful for not only block scheduling and batching out what I need to do in a week, but also for keeping me super on point when I'm coaching on the other days and just very, very focused on what I need to do. I think that as entrepreneurs and as CEOs, one of our biggest forms of currency is our focus and our attention. So, scheduling in a CEO day is going to massively help you feel organized and sane as you move into the week. And I recommend doing it on a Monday because who doesn't love moving into the week feeling organized and sane?

Cait Scudder:
The second thing I would say is, create a little routine for yourself on a daily basis. And I don't mean wake up at 5:00 AM, meditate, do power yoga, sit in lotus for 25 minutes. No, you don't have to do any of that. For me, one of the things that I have is a non-negotiable. I wake up, I have some water with lemon, I exercise for half an hour to 45 minutes, and I move into my day after doing a little bit of gratitude practice. And I might think about things in the shower. I don't spend hours journaling in the morning. But I think that if you can mentally and physically prime your body in the morning, you're really setting yourself up for success.

Bobbi Rebell:
You also talk a lot about the mindset that's involved because it's important that we be aware of what other people are doing. First of all, we learn from them and you should just always be aware of competition, let's be real. And also, I believe a lot of competition, it's actually expanding businesses. So, I believe in cooperation over competition in general, but it's also important not to compare too much, right?

Cait Scudder:
Absolutely. So, I think one of the biggest things that knocks us off our horse is this feeling of imposter syndrome of, "She's doing it better than me" or "they already have this established company" or "who am I to come into this space?" And I think whenever that happens, and let's be real, it happens for all of us, the most important way that we can shift out of that is moving your attention from comparison, from analyzing all of your flaws and your worthiness and your capability. Taking your attention off of all of that comparison and "not good enough" noise, and moving it back to a place of service, and moving it back to a place of all of the reasons why you and you alone are the best equipped to serve your people. Why you have moved through everything that you've been through in your life, in your business and your experience in order to be able to offer what you're doing.

Cait Scudder:
And just remember, if you are not showing up for your people, you're taking away from them the opportunity that they have to experience what's possible on the other side. So, the more that you can give yourself permission to let go of the comparing mind, which is our ego's way of keeping us safe, and go back to all of the ways that you're equipped to help somebody, you're going to be of so much more service and you're going to make a heck of a lot more money.

Bobbi Rebell:
I want to finally just touch on something that you have some strong opinions on. And that is MLMs, multilevel marketing. It's important. There's some really good ones out there, but you also have a lot to say about the fact that some of them are scammy. What do people need to know?

Cait Scudder:
I think that there are a lot of amazing people out there building a successful business in network marketing. I think there are great companies out there that offer possibilities for people, but do your homework, guys. I think it's very important to know what you're getting into and to really... And this is the case, whether you're in an MLM or you're building your own business or you're working for somebody else, quite frankly, is you need to be 100% behind the mission, the ethos, the values of whatever it is that you're selling.

Cait Scudder:
So, rather than just looking at a shiny object as a way to make a little bit more money in your bank account month after month, really ask yourself, "Is being affiliated with this community or this company something that I'm going to feel proud of in 10 years? Do I align with the values and the greater impact that this company is making?" Because ultimately, whether you are just one person in a rank or you are an entrepreneur under your own brand, you are representing a brand and that brand is yourself. And so, you really want to make sure that you align at a deep level with whatever it is that you're standing behind.

Episode Links:

Cait's website - www.caitscudder.com
Cait’s podcast - Born To Rise
Cait’s Ted Talk - www.caitscudder.com/episode/tedxtalk

Follow Cait!

Instagram - @caitscudder
YouTube
Facebook - @caitloneragan

Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Financial Grownup Guide: How to succeed at going into business with your BFF with Noah Isaacs of Bowery Valuation

So many of us dream of having our own business and what could be better than doing it with our bestie. But like all relationships- it can get complicated. But when it works, it can be the “it” factor that sets a business apart and on the road to success. Bowery Valuation co-founder Noah Isaacs shares his four key strategies to making a business with your BFF work.

4 key things you need to have to nail down to make working with your BFF work:

Trust
Complementary skills and expertise
Shared vision and shared values
Being in the foxhole

Episode Links:

Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

Noah’s website - www.boweryvaluation.com

Follow Bowery Valuation!

LinkedIn

Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Financial Grownup Guides, Business, Entrepreneurs, Family + Relationships, Money, Personal FinanceBobbi Rebell KaufmanSeptember 20, 2019Bowery Valuation, Noah Isaacs, BFF, Best Friends, Business

Beware the standard startup business agreement with Heartbeat founder Kate Edwards

“Understand, if you are a partial owner in a company what that actually entails and what your rights are.”

Kate Edwards, spent a year working as a founder with no salary and then a day before she would get the big pay day, she was shown the door.

You think it would never happen to you- but it can.

Kate's money story

Kate Edwards:
My money story relates to a previous startup that I was at and, you know, although of course I wasn't dating this person, as you mentioned it did end up becoming something where you think everything's all well and good at the beginning and then at the end it kind of turned sour. So I had started a company a few years back that was in the dating tech space, if you will, and my co-founder was great. He was a really great guy, you know, I had a couple other people working on the project and we essentially were working nights and weekends when we started. I eventually ended up quitting my job to work on the project full time and we worked together, building this product, for almost a year.

Bobbi Rebell:
Did you have legal paperwork when you quit your job? How was that structured?

Kate Edwards:
Yeah, actually we did, you know, we worked with lawyers and we all wrote the paperwork together. So in theory, we all knew what we were getting into conceptually, but I realized I ultimately had no idea what I was doing at the time because I really didn't understand the implications of what it means to be in a business partnership with somebody. So fast forward to nearly the end of a full year working together, one of my co-founders, he essentially said to me, "I want you to leave the company and I want you to walk away with nothing." And I said, "Hey, you can't do that-"

Bobbi Rebell:
Wait, wait, wait. But you were partners and you had paperwork.

Kate Edwards:
Yes.

Bobbi Rebell:
I mean, you were a partner if you are co-founder.

Kate Edwards:
Exactly. So essentially what the paperwork said was that all of us had equity or options essentially in the company, and as part of that, you're subject to what's called a vesting schedule. So a vesting schedule is determined by the company, was determined by us, and the standard vesting schedule is that if you have options in a company, you basically vest those options over time. So you have 100,000 options in a company that happens over the course of four years. And typically in this scenario and in most startups, you have a four year vesting schedule with the one year cliff. And a one year cliff, all it means is you can't access that. You can't purchase any options. You can't really own anything in that company, you know, until you basically have worked there for a year.

Kate Edwards:
So what this guy did to me was on literally day 364 he called me and said, "You're out." And there's a lot of legalities that happened and I'm simplifying it a little bit, but long story short, I walked away with nothing after working without a salary for a year and after creating this company that I really loved. Looking back, I think there's a lot of different things I could have done better, but the biggest thing that I realized, and the biggest lesson that I learned, was that it's not just about reading the paperwork or having a lawyer reading the paperwork, it's about truly understanding what it means to be in a partnership with somebody or what it means to be employed by somebody, or what does any type of ownership in a company mean.

Kate Edwards:
Since then, obviously, I've started a another company. We've been around for over three and a half years now, which is definitely crazy to think about, and we have 23 employees right now at Heartbeat. And so I've learned so much more. I've listened to podcasts, I've read so many more books to make sure that I have this understanding. And I also understand the impact of having a lawyer on your team. So I just wanted to share a little bit about the mistake that I made with the hope that anybody else who's working for a startup in the future can take my mistake and make sure that they don't do the same thing.

Bobbi Rebell:
Well, did you have a lawyer at the time? I mean, were there red flags that you just didn't spot because people didn't look at it? Because if you guys were co-founders, how could he decide to oust you? That's what doesn't make sense. How did he have that power?

Kate Edwards:
Yeah, it's complicated. And you know, honestly, it's not clear cut. It's not like this person owns 51% and this person owns 49%, right. We had a number of different people involved as well, and different people had put in different amounts of money and things like that. So ultimately it was a decision that he could make. And I think being ousted is something that people see as, "Oh, that'll never happen to me," so it wasn't something that I had necessarily thought would happen. So because of that, because when you go into creating contracts with people you do have a good relationship with them, you often don't think about what the implications are if they go sour. So yes, I did have a lawyer look at the original paperwork for instance, but you know, everything was very standard in terms of how a typical startup is set up.

Bobbi Rebell:
Interesting. So effectively he was able to control things because of the way the shares in the company were allocated.

Kate Edwards:
Absolutely. And there's also some things that weren't shared with me so I didn't have complete transparency into everything, which was another mistake.

Bobbi Rebell:
Can you elaborate at all?

Kate Edwards:
You know, just in terms of who the investors are and what his relationship with them are and things like that. All of those things were, you know, we actually didn't have very many investors. It was just a matter of understanding all of the players that were involved. But I do think the point of my story is not to speak ill of this person, but it's really just to say that I think understanding the types of stock options you have, you know, if you are a partial owner in a company, what that actually entails and what your rights are. If there's people on a board, those types of things are questions that I just straight up did not ask because I didn't know about. And those are all things that I think a lot of people make mistakes on just because they don't ask the right questions.

“I walked away with nothing after working without a salary for a year. And after creating this company that I really loved.”

Kate’s money lesson

Kate Edwards:
The lesson for our listeners is always, always understand essentially who you're getting into bed with. That refers not just to if you're starting a company, but very much so if you're joining a startup. I know a lot of millennials and younger people right now think it's really hot to work in tech, right? That's the cool industry to go into right now. But most people don't know what it means when somebody says, "Hey, here's 10,000 stock options or 50,000 stock options." They're an ISO, they're an RSU, there's all these types of kind of industry jargon that's thrown around and people get excited that they have some sort of ownership in the company, but they don't know what it means and they don't know how to act related to that. So the lesson is really read up as much as you can on what owning a part of a company or an option to own a part of a company means so that you're able to make sure that you maximize the money that you can potentially make from that opportunity.

Bobbi Rebell:
And it's also interesting that you signed a very standard contract, but yet there were still a lot of things that you didn't know, even though there weren't any necessarily red flags in the contract and a lawyer looked at it. So I think that's pretty interesting as well. Let's get to your everyday money tip because this is something that a lot of people have very strong feelings about one way or another.

“The biggest lesson that I learned was that it is not just about reading the paperwork or having a lawyer reading the paperwork, it is about truly understanding what it means to be in a partnership with somebody.”

Kate's everyday money tip

Kate Edwards:
I like to come in hot and my tip is to get an MBA. And the reason that it's my tip is just that it is a very clear return on investment. Data has shown a lot of people and particularly women are a little risk averse to getting an MBA because you have to take yourself out of the environment in the working world for a few years. You have to invest actual money, but you also have to invest time. I got an MBA, went to UCLA Anderson here in Los Angeles. I've done a little bit of research on this anecdotally as well, and from all the women I've spoken to, I now have friends from business school who work at Uber and Netflix and Hulu and McKinsey, all of these people working at these great companies, and they've all seen a very huge increase in their salaries.

I even had a friend who made $40,000 before going into business school and he came out of business school and made 200. The numbers basically show that the return on investment you see is somewhere between 250 and 325% return on salary immediately after graduating, and then of course lifetime earnings are increased as well.

Bobbi Rebell:
I think it's a very smart thing and I think that the networking, what you talked about with all the different people that you've met and now you have contacts at all those other companies, should also not be underestimated, the value of that as well.

Bobbi’s Financial grownup tips:

Financial Grownup tip number one:

It is scary out there. Standard legal documents don't always mean they will protect you. In fact, the standard may be designed to protect someone else. So just like with medical related decisions, it may be worth it to get more than one lawyer involved when agreeing to work for what was, in Kate's situation, a full year for free. And read it yourself also and ask the lawyer questions. But even then, know that things can go bad and don't blame yourself if it happens. It could happen to any of us.

Financial Grownup tip number two:

Get more educated. Kate is a big fan of the MBA and the numbers, they are real and compelling. I totally get it. It may not be for everybody and if that is not for you, you can still educate yourself with things that may not be as heavy a lift. MBAs are great, but that doesn't mean it is an option for everyone at every stage in their life and that's okay. I went, for example, and became a Certified Financial Planner and while I don't have a practice with financial planning clients, I know that first of all I could one day, it's always an option, it's always good to have options for different income streams. I know that it has resulted in getting me higher paying jobs.

Episode Links:

Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

Kate’s website www.heartbeat.com

Follow Kate!

Instagram - @k8eddie
Twitter - @k8eddie
LinkedIn - @kateavelineedwards

Follow Heartbeat!

Instagram - @Heartbeat
Facebook - @Heartbeat

Advice, Business, Entrepreneurs, Financial Grownup, Money, Role Models, Women Role Models, Women EntrepreneursBobbi Rebell KaufmanJuly 30, 2019Kate Edwards, Business, Salary, Contract, Partners, Partnerships

A new way to fund your way to becoming a Financial Grownup with Solo Funds CEO Travis Holoway

The cash crunch that led to a business that is disrupting the ultra short-term loan space

Travis Holoway started a Solo Funds, aimed at disrupting the short term, small loan industry by leveraging technology and offering a new kind of lending culture.

Travis: I was working on Wall Street and I was studying to be a broker and there's these exams that you have to take. They're series exams, but FINRA is the regulatory body. You know these exams are very strenuous and you're not really making money while you're studying for those exams.

Bobbi: So give me an example of what a typical salary would be and then what the cost of living is.

Travis: Man, if I remember correctly, I think I was making $250 a week.

Bobbi: Working at a financial company?

Travis: Yes. Working at a financial company in New York City.

Bobbi: What was your job there?

Travis: I was studying to be a broker. It's like a glorified intern, if you will. After you factor in the metro card I couldn't even afford much in the financial district where lunch was costing about $12 a day. So I took a job at CVS. Unpacking trucks, third shift and I would work 10 to six at night. I would come home at six o'clock I would shower, I would put a suit back on and I would head back into the office.

Bobbi: So you literally didn't sleep?

Travis: No sleep at all.

“ So even with working around the clock, I still couldn’t afford any financial surprises. I remember walking like 90 city blocks because I had no money left in my metro card.”

Travis: Actually what happened was I swiped my metro card and there should have been enough for another fair, but for some reason it didn't work. And the attendant told me that I had to mail them my metro card for them to figure out what happened. But long story short, that led to me walking 90 city blocks home. So humbling times.

Bobbi: So you're living this life where you're technically employed by brokers a firm, but you're really a glorified intern earning very little money. You've got a second job at CVS working overnight. So you're really not sleeping much. How does that play out?

Travis: So this situation for me didn't change or evolve until I actually took another job at another financial services firm where there was a more stable salary. And from that point I've been able to rise up the financial spectrum. But it was until I moved and changed positions that I was able to pull myself out of those financial circumstances.

Bobbi: You did pass the exams obviously?

Travis: Yes.

Bobbi: So basically by getting a higher paying job, that's what solved the problem for you?

Travis: Exactly. For me personally, yes.

The lesson here is really to focus on saving

Travis: Focus on getting to that first $500. If you have just $500 in liquid capital, you're actually doing better than half of the country. So people like to get down on themselves because they feel like they're not exactly where they want to be, but it's really a journey. And you know, it's a marathon. It doesn't happen overnight. But celebrate those little milestones along the way. You get to that first $500 saved, keep going, get to a thousand then get to 5,000 and just keep pushing yourself. But this doesn't happen over night for anyone except for power ball winners.

“Later on, I would talk to my friends and they would give me some feedback of what those payday loans actually meant for them. ”

So don't give up. I had friends who had taken payday loans during college and then post college and they would say, hey, just go to this brick and mortar building and get this loan for $400 and I would say, yeah, that sounds good. But there has to be more into that. And then after kind of speaking with my parents who actually steered me away from that and did everything that they could for me to prevent me from taking a payday loan, they're the ones who gave me that knowledge.

While it sounded like a good idea at the time, because their backs were against the wall and it seemed easy to go and get that capital after the fact, it really put them in a very tough financial situation because the fees that compound on top of those loans, it took them months and sometimes years to get out of.

My money tip is if you have the ability, add your teenage child or spouse that may have little or no credit to your credit card account as an authorized user.

Travis: Inversely, if you have a parent or a spouse that has more credit card accounts or better credit than you encourage them to add you to theirs. 28% of the country has no credit from any source and it's really important to build credit. And I personally believe that the FICO score stat, and I know we'll talk about that a little bit later, but credit is still required to accomplish many of life's financial milestones. So with that said, I believe that this is a tip best often overlooked and it's a great way to build credit. One your actual credit and limit I going to be considerably higher than it would be if you were applying for a brand new card. And then also the length of time that that account has been opened will also be a positive benefit to your overall credit report. So as payments are made to that card, they will positively impact everyone associated and it will help people build credit indirectly.

Bobbi: Right. And even though there is a lot of controversy right now about fico scores, especially with errors that can sometimes happen, which people should be vigilant about checking their credits so they can see if there are errors by the way. It is a time when people are looking for different solutions for access to money.

I really wanted to have you on because the company that you are the co founder of and CEO of SoLo focuses on an area that can really be taken advantage of. I reported a lot during the housing crisis on people that had taken payday loans to cover short term debt, but then it can spiral out of control. As you've mentioned, this is a different approach.

About Travis; company Solo Funds

Bobbi: You are the co founder of and CEO of SoLo focuses on an area that can really be taken advantage of. I reported a lot during the housing crisis on people that had taken payday loans to cover short term debt, but then it can spiral out of control. As you've mentioned, this is a different approach.

Travis: SoLo in short is a mobile mini exchange created to provide more affordable access to small dollar loans below $1,000.

We function very much like Airbnb for loans, but we were essentially created to disrupt that predatory payday lending industry that you're speaking about.

“. Lenders actually make a return in the form of a tip, which is optional on behalf of the borrower.”

The way that our platform works is it's a two sided marketplace and we're very different than some of the marketplaces that many have heard of like a lending tree or lending cloud primarily because we're focused on these small dollar loans and those larger, what I call big brother peer to peer lending companies are focused on loans up to $40,000. So that might be debt re-consolidation that might be a down payment on a home. We're focused on that American that's living paycheck to paycheck and that single mother that needs $100 to pay her utility bill or the college student who is $200 short for that textbook. That's who we're really trying to help.

Bobbi: I think one thing that's interesting here is that this could really apply even to families lending to other family members or friend to friend because you're providing a documentation and a paper trail effect if it's digital, but you're providing an authority in between. Because very often people are asked to lend money to people close to them and it becomes awkward. You don't want to be asking them. But if you go through the app, can you talk a little bit about how that would work because it creates a stronger outcome, a better outcome because you've made it more of an official loan, I guess.

Travis: Yes, exactly. So the reason why the platform is built that way is because the personal experiences that I had, lending and borrowing amongst friends and family. With that said, we're making this a real transaction and we're putting real terms around a loan. So people are lending and borrowing amongst each other every day via cash or other applications. But there's no terms around that. So if I wanted to borrow money from my mother and she said, Hey, I'll lend you the money but I'll lend it to you on SoLo, I would create a transaction on SoLo, which is basically saying I need to borrow $100. I as the borrower can actually create my own terms. The lender just agrees to the terms at a later point.

Bobbi: Right. So you can say, I'm going to pay zero interest mom, is that okay? And Mom can say, oh, that's okay. I don't want interest or mom can say I'm pulling money out of other investments. I want 5% whatever it is, you guys can work it out.

Travis: Exactly. Once we agree on those terms, there is a promissory note. A digital promissory note which is created which now says that I owe my mother X amount of dollars and that is actually enforceable. So the lender has track record of how much was lent, when the repayment is due and if there is any additional fee associated with that in the form of a return.

Bobbi: How is it enforceable and how do you guys get paid?

Travis: You know there are no impose fees on the SoLo platform, which makes us much more unique than any other financial platform today. So there are no imposed interest rates and there are no impose fees on behalf for SoLo. Lenders actually make a return in the form of a tip, which is optional on behalf of the borrower. And then solo actually makes a donation, which is also optional and paid by the borrower. Again, no imposed fees. So the enforceability comes into play where if a borrower does not repay, the lender the discretion to send that borrower or not send that borrower to collections. We have a third party collections company that we'll work on behalf of the lender to recover the funds. And once we recover those funds are directed directly back to the lender.

Bobbi: And what is your default rate? How often does that happen and how does it compare to payday loans?

Travis: Our default rate is two times better than the lending clubs, lending trees and [inaudible 00:12:15] of the world. We're about five times better than traditional payday loans. One of the things that investors are most excited about and other people are most excited about is this new creation of a credit score. I believe the fico score is dead because millennials in the under bank demographics are not doing the same. They're not living their lives the way that prior generations have like buying homes, buying cars, and using credit cards. So with that set, alternative data is necessary. And solo has this data on the under banked and millennial demographic and our goal is to be a path forward to upper financial mobility to where we can graduate borrowers from our platform to more traditional financial institutions in the future where they can have more resources and financial tools.

Bobbi’s Financial Grownup tips:

#1: If someone that you care about needs money, in a cash crunch for example, and you have the money available but it needs to be a loan, not a gift, make sure you document it. Obviously SoLo Funds is an option to look into, but you can also draw up a payment plan or whatever. Just make sure the terms are clear and in writing.

#2: . Things for Travis did not turn around because he cut costs. They turned around when he got a better paying job. He got a better paying job by putting in the time to work basically as an intern and to study and then pass some big exams. They gave him more viability in the job market. Watch your money, of course, do not spend foolishly, but the goal always needs to be to earn more.

No one can cut their costs to get wealthy. Do the work, get a higher paying job, earn more money or some way to boost your income. That is ultimately what is going to build more money. More financial freedom is having more money. You can't cut your way to getting rich.

Episode Links:

Blinkist - Please use our link to support the show and get a free trial.

Check out Travis' website - https://solofunds.com/

Follow Travis!

Instagram - @SoLoFunds
Facebook - @SoLoFundsInc
Twitter - @SoloFunds

Business, Career, Entrepreneurs, Financial Grownup, Money, StartupBobbi Rebell KaufmanMay 23, 2019Travis Holoway, SoLo Funds, Loans, Small Business Loans, Business, funding, Funds

Adulting for brands with Plum Pretty Sugar’s Charlotte Hale

Charlotte Hale Instagram WHITE BORDER.png

Entrepreneur Charlotte Hale faced a big business dilemma. When she named what she expected to be a seasonal business, Plum Pretty Sugar, she wanted to evoke a whimsical tone. But the brand soon became a powerhouse as the originator and pioneer of the now global multi-million dollar bridal ‘getting ready’ category, and she faced a challenge she compares to adulting but for brands.

In Charlotte's money story you will learn:

Let's talk about the name, Plum Pretty Sugar, which makes you happy to saying it. I asked you before we started rolling how you came up with it and that was actually an interesting story because you think things are going to be one way when you start a project and then maybe not so much and maybe that's okay. Tell us your money story.

Yes. After my initial business, I was looking for what my next business was going to be. I didn't really have all the answers. I started what I thought would be a temporary business and it was something that sold robes and it was going to be for a season. By season, I mean a holiday season and just something that I could do easily and quickly and was also fun for me. I thought to myself, okay, well, what am I going to call this business? I gave it this fun, whimsical, playful name, Plum Pretty Sugar. Of course, one thing led to another and Plum Pretty Sugar is now the business. I still have the name obviously.

Did you think about changing the name? Do people approach you about the name? Because I had trouble saying it at the same time when I saw it on the screen, it made me happy. There's something very, as you say, very whimsical about it. Was there a story behind when you thought of the name? Do people talk to you about it and ask you about it now? Does it invite curiosity?

It always invites curiosity and when I named the business Plum Pretty Sugar, I wanted to have something that sort of went against the grain of everything you learned in business school, right? They tell you, you shouldn't have something that has more than three words and you shouldn't have alliteration, and you should create a word that means nothing that could mean everything, i.e. Google, Nike, et cetera. I just went against the grain entirely. You know, of course, I do think about it periodically in terms of, oh my gosh, it's so long, but at the same time it's so long that people almost remember it because it's so long or they changed the words kind of like you did.

Of course, we own all the URLs and all the versions of the order but because it's so long and people are like, "I forget the name," but they know it has pretty plum and plum pretty and sugar are built in there. It almost becomes memorable in a way. On the flip side, I sometimes want it to feel more sophisticated and elegant and more representative of where we are today. That's something that's sort of in my heart. When I say that to other people, they're like, but it is, it represents your brand perfectly. To the outside, I think it works. For me personally because I know where it started and why I started it, I have this back and forth kind of personal thing with it. It's fun. I do like it and we love the business.

It's interesting because you look back and it was almost a whimsical decision in and of itself, but it really was a pivotal branding decision that when you switch the business from being this seasonal business that you originally conceived of to being the permanent business, it's now a decade old, I should say. You did make a decision at some point to keep the name.

I did. I did. I really wrestled with that. You know, I thought, well, I have established the success. Why am I now going to go and change it? You know, it wasn't something that I could easily make up a story for or a marketing story for a while. This was great, but now I'm going to change it. I just felt karma was on my side and I was going to go forward. That said, you know, we have done a couple of different collections that we've called for instance, PPS couture and we will reference ourselves sometimes as PPS when we need to or when we think that it's just a little bit too long for that given scenario. Also, another lesson is that it's really long to write as a logo and so we're always like, okay, how are we going to do our logo when we're ready for a logo update to make all those letters fit within a certain space or how people want logos to fit.

It does sound like what's happening is you are allowing the brand to grow up by having these things like PPS couture, you're adapting it for how the brand is evolving.

Yeah, we really are. I think also the connotation that I have and the whimsicality that it had for me initially, which kind of felt really sort of, I don't want to say young, but fun and lively. Now the way we've reiterated the letters a little bit differently and we're using the positioning of the logo a little bit differently and within the opportunities that we have, we're kind of growing up those words and trying to think of them differently. Sometimes it can be a challenge, but I don't think we can ever take away the name.

“What you think is temporary could be permanent whether it is a boyfriend .. or a business.. what you do in the early days impacts the long term”

In Charlotte’s money lesson you will learn:

Yeah, I guess, never think that something is temporary, what you think is temporary. It could be permanent, whether it's a boyfriend or a husband or business to a business. You know, what you do in the early days impacts the long-term and there's no doubt about that. To always think it through thoroughly and make smart decisions. I kind of knew in my gut when I named it, I was doing something that was kind of off the books and I probably should have listened to that at the time. We're going ahead and the name is staying.

Well, I like the name. I think it makes people feel happy. I think that it's serving you very well and like I said, I think you guys seem to have the way to adapt it in ways that will help the brand grow.

"Purchase quality pieces, think about who made them, where they came from and live with them for a long time.”

In Charlotte's everyday money tip you will learn:

Yeah, exactly. I mean I think for us and we talk about this in the brand too is just purchasing quality pieces, whether it's clothing or whether it's anything in your life, really, just to purchase quality pieces. Think about who made them, where they came from, and to live with them for a long time. For us as a brand that's important because we are in clothing and there is a decent amount of waste and we try not to be wasteful and we don't want to see whether it's clothing or plastic or whatever it is in landfills, for now, for our children, for our future. Buying quality pieces really, really can impact what we put in the landfill.

What are some specific things that our listeners can look for to know that something has been made in a responsible way and that is going to be long-lasting, et cetera?

Yeah. Shopping smaller, shopping locally, paying attention to the price point when something is 7.99 or $5 and it's almost like it's too good to be true then I think you really have to start thinking about who made this and what type of environment because it's just too cheap. That doesn't happen. You know, there's a cost for yardage. There's a cost for environmentally friendly ink. There's a cost to pay workers what they're supposed to be paid. When something is really too cheap, just think about it a couple of different ways and make sure that you really need it and want it.

“I just felt karma was on my side and I was going to go forward”

In My Take you will learn:

Financial Grownup tip number one. It goes to that saying that you should give a lot of thought to how you name a brand as much as it is possible, choose something that can evolve and grow with the business. It's also important to look at how others may remember that brand name and on that note, I want to point out something that Charlotte said sort of in passing. She has the URLs for all the ways people might mess up the name of her company. Grabbing a few extra URLs when you're setting up a business or a side hustle is inexpensive and really easy to do. I own close to 30 URLs tied to my various projects and ideas and side hustles. You know what? The cost is really minimal.

Set them up so that if someone types in something close to your business, they still find you. Make it as easy as possible for potential clients and customers and of course also friends and family that you want to be able to find your projects and your businesses. Financial Grownup tip number two, don't fight who you become as you grow up and go through the seasons and the milestones of life. Maybe just highlight different parts of who you are at that time. Yes, you will change, but the essence of who you are will not. Just like Plum Pretty Sugar still reflects the same essential vibe as the earlier versions, the earlier iterations of the business. It's just evolving and growing as it expands. This show is free for you but as I hope you guys can tell, we do put a lot of time, energy, and yes, there's a financial cost into this show and to keep it free for you, we do need your support.

Episode Links:

Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

www.PlumPrettySugar.com

Follow Charlotte!

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Personal Instagram - @CharlotteJayneHale
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Entrepreneurs, Business, Financial Grownup, Shopping, Women Role Models, Women EntrepreneursBobbi Rebell KaufmanMay 13, 2019Charlotte Hale, Plum Pretty Sugar, Business, Entrepreneur, Wedding, Bride

The last Financial Grownup Podcast episode and transitioning my business

As the Financial Grownup Podcast approaches 200 episodes, Bobbi explains why she is shutting down the podcast to focus on her other ventures including the Money in the Morning Podcast, her follow up book to “How to be a Financial Grownup” and what’s next for her growing media company.

Episode Links

The Washington Post article mentioned - How parents of adults can (gently) close the doors to the Bank of Mom and Dad
Money in the Morning podcast

Bobbi Rebell KaufmanApril 1, 2019Podcast, podcasting, Money In The Morning, MITM, Business, Entrepreneur

The awkward conversation strategy that turned a baby hobby into a grownup business with Bapron Baby’s Kelsey Larsen

Kelsey Larsen Instagram WHITE BORDER.png

Millennial mompreneur Kelsey Larsen shares her story of taking her home-made bibs from Etsy to mass retail by reaching out to entrepreneurs she admired but did not know, for advice, and in one case, collaboration.

In Kelsey's money story you will learn:

How this young mom started a company from a product she made to keep her son clean during mealtime
How she started a business with a $99 dollar sewing machine and $20 in fabric
How her first sale on Etsy launched her into full business mode and the things she had to learn along the way
The importance asking questions even when you're nervous to do so

In Kelsey's money lesson you will learn:

If you have an idea, just go for it
If you aren't embarrassed by the first version of your product you've started too late

In Kelsey's everyday money tip you will learn:

Realizing that at some point that you can't do it all
The importance of finding and identifying people that are great with aspects of your business that you aren't so good at

In My Take you will learn:

Why it's important to reach out boldly to people that you admire and can learn from
Why you'll want to do some test marketing before going all in on your side hustle

Check out Kelsey's website -

BapronBaby.com

Follow Kelsey!

Instagram - @BapronBaby
Facebook - @BapronBaby
Pinterest - @BapronBaby

Millennial mompreneur Kelsey Larsen shares her story of taking her home-made bibs from Etsy to mass retail by reaching out to entrepreneurs she admired but did not know, for advice, and in one case, collaboration. In this Financial Grownup podcast e… — Millennial mompreneur Kelsey Larsen shares her story of taking her home-made bibs from Etsy to mass retail by reaching out to entrepreneurs she admired but did not know, for advice, and in one case, collaboration. In this Financial Grownup podcast episode you’ll learn how you can take a side hustle and turn it into a successful business. #Entrepreneur #SideHustle

Transcription

Kelsey Larsen:
I made the decision to really go all in. I made the investment. I bought 20,000 boxes for a product. I had not sold 20,000 Baprons at this point. I had not sold anywhere near 20,000 Baprons but I asked the awkward questions to people that I had no business talking with.

Bobbi Rebell:
You're listening to Financial Grownup with me, certified financial planner, Bobbi Rebell, author of How to Be a Financial Grownup, but you know what? Being a grown up is really hard, especially when it comes to money, but it's okay. We're going to get there together. I'm going to bring you one money story from a financial grownup, one lesson and then my take on how you can make it your own. We got this.

Bobbi Rebell:
That was entrepreneur, Kelsey Larsen of BapronBaby talking about jumping in big when she decided her hobby, making unique bibs that wrap around the baby, was going to be a lot more than a stay-at-home mom hobby.

Bobbi Rebell:
Hello, Financial Grownup friends and special welcome to our newest listeners. If you have a moment, I want to hear how you discovered the show and also any feedback or suggestions. DM me on Instagram @bobbirebell1, on Twitter @bobbirebell, or email hello@financialgrownup.com. As I said, suggestions, feedback, anything that can help me improve the show and grow the show, truly appreciated.

Bobbi Rebell:
Let's get to BapronBaby's Kelsey Larsen. The biggest of her story is really relatable but where she went and where she's going is pretty extraordinary and something that we can all learn from. There's so many decisions that she's made so far that really changed the course of where the company is going and that's affected her life and her business. Make sure you stay for our everyday money tip by the way. It is about a vision board, but it's not really the kind of vision board that you're used to. It's got a big twist that I think you guys are going to really get a lot from. Here is BapronBaby founder, Kelsey Larsen.

Bobbi Rebell:
Hey, Kelsey Larson. You're a financial grownup. Welcome to the podcast.

Kelsey Larsen:
Thanks, Bobbi. It's so good to be here.

Bobbi Rebell:
I'm excited to hear more about your business. You are the founder and the owner. We practiced saying the name because I kept messing it up. It's BapronBaby.

Kelsey Larsen:
BapronBaby. Yeah, it's got- [crosstalk 00:02:32]

Bobbi Rebell:
Which I do want to point out is self-funded and debt-free and you have really ... I mean, your main product are these, I wish they were around when my son was younger, these bibs that are basically for the babies that rip off the bibs and throw them to the side, which is pretty much, at least my kid, a lot of kids.

Kelsey Larsen:
Exactly. The company, I started because my son wouldn't wear bibs and I was getting so frustrated with how many of his outfits he was ruining.

Bobbi Rebell:
Yeah. Outfits, furniture, walls. So much can be ruined.

Kelsey Larsen:
All of the things.

Bobbi Rebell:
All of the things. And I want to talk to you about how this become "A real company," a real brand because you're now in everywhere from Buy Buy Baby, you're on Amazon, just everywhere that you would ... I think over a hundred boutiques in this country. If this started as a hobby though, how did you know this could be a brand? Tell us your money story.

Kelsey Larsen:
You know, it sort of started out a necessity. I was a young mom. I had quite my job in HR to stay home with my little boy and I was living the dream, but my husband's a police officer and we started looking through things and we were like wow, we need some additional income. I had made this product for my son. It was just something that I had created for him because I needed something that would cover his entire body when he was eating meal time and he was comfortable in it. A friend mentioned Etsy. I had never heard of it. I had never sold anything on it, for sure. And I just sort of made a listing. I took some pictures of a bib that my son ... It was a Bapron that my son had actually worn. It was kind of dirty. Just took a picture of it and say hey, I'll sell this to you for ... I think I said like ... My first one, I think I sold for $17.

Bobbi Rebell:
And you just made it at home. You had just made this yourself?

Kelsey Larsen:
I started this business. Honestly, I started everything that I have with a $99 Brother sewing machine and 20 bucks in fabric. It was just something I made in my living room.

Bobbi Rebell:
Wow. Okay. So, how did you go from ... Now, you start selling it on Etsy. What happens?

Kelsey Larsen:
My very first listing sold within 24 hours to someone I had never met, a stranger in Illinois. All of a sudden, I needed packaging. I needed to figure out how I was going to send this to her. I couldn't just send it.

Bobbi Rebell:
And you hadn't thought about that?

Kelsey Larsen:
No. No, I didn't think I was ever going to sell anything. So, I had a printer and I went online and I used Microsoft Paint to make myself a logo and write a few words about the product and printed it out and it was very homemade.

Bobbi Rebell:
So, that went on for about a year, the Etsy selling. Then, you made a decision to really turn this into a brand. What happened?

Kelsey Larsen:
From Etsy, I gained a little bit of confidence. I started realizing that this is a product that mothers and families need. Toddlers are really happy in it. They're comfortable and they're working. They're waterproof. They have everything that we need. So, I made the decision to really go all in. I made the investment. I bought 20,000 boxes for a product ... I had not sold 20,000 Baprons at this point. I had not sold anywhere near 20,000 Baprons but I asked the awkward questions to people I had no business talking with. The owner of EzPz, Lindsey Laurain, she ... I reached out to her. One email ... I think I sent her an email on Christmas Eve.

Bobbi Rebell:
Cold? You didn't know her at all?

Kelsey Larsen:
Oh no. No contact prior to it but I knew that she had been on Shark Tank and it was something I had been thinking about. So, I kind of angled it as like "Hey, I'm someone coming up the same path you did and I wanted some insight." It was Christmas Eve and she responded to me at like 11:00 at night within 20 minutes.

Bobbi Rebell:
Oh my gosh, wow.

Kelsey Larsen:
She was so quick to answer questions and so quick to give me her tips because she kind of did start the same way. Just a ... Like a mom who had a product that she needed to get out in the world. From there, I was able to awkwardly ask her the questions about "Hey, who makes packages? How do you find a company that does that?" Because when I Googled it, I couldn't really find much. So, a series of those awkward conversation where I asked someone who was successful already and- [crosstalk 00:06:36]

Bobbi Rebell:
And you were just cold calling these people? You were just emailing this people cold?

Kelsey Larsen:
Honestly, it was basically just sending a message on Instagram or finding an email address or just little things here and there. There were businesses that did not ever respond to me, but that's okay. I mean, not everybody has to give me the time of day. Just reaching out about very specific questions and little by little, I found contacts for manufacturing and then I found contacts for a team here in the United States who does the actual sewing of the product.

Bobbi Rebell:
And then how did you grow it? How did it become this bigger brand that's now in so many retailers?

Kelsey Larsen:
Instagram has been a wonderful wonderful tool and being able to connect with other mothers has been great. Word of mouth advertising is the most successful form of marketing and I never could have grown my business without customers taking my photos. I don't have a photo studio but we're still growing to Buy Buy Baby and we're in Nordstrom and we're on Amazon in these places that I never could have done on my own.

Bobbi Rebell:
So, wait. What happens is people take pictures of their own babies ... And do you prompt them to do that? Do you ask them to do that or did this just start happening?

Kelsey Larsen:
No. At first, I was just on Instagram trying to [huck 00:07:50] my product to the 12 followers that I had or something. That first customer that I told you about on Etsy, she had bought the Bapron specifically for her little girl's 11-month photo shoot. So, she just sent me pictures just saying like "Hey, look how cute your product is on my baby." I asked her if I could use that for my marketing and she absolutely goes "Yeah, that would be great." And from there, I started to find that people are pretty excited to have their photos out and so I would just reach out individuals who had taken their pictures in the past, say "Hey, if I send you a few products, can you take pictures for me?" Absolutely, they would and it's been a very slow organic growth and brand repping has been something that I've been really grateful for.

Bobbi Rebell:
So, it's really been organic authentic growth through social media.

Kelsey Larsen:
Yes. Along with that though, there was a lot of pacing myself, realizing that I can't do it all. I can't balance manufacturing on my own and marketing on my own and running my social media and taking care of my son and making sure that my family has the things that they need. I very quickly learned how important it was to recognize the things that I'm failing at. Maybe not failing, but that I just cannot fit in and get over the guilt of it, stop feeling bad that I can't do it all. There's a David Allen quote that says "You can do anything, but you can't do everything."

Bobbi Rebell:
All right. What is the lesson, the takeaway for our listeners from this story?

Kelsey Larsen:
If you think you're not ready but you have an idea, there is no harm in just doing it, just going for it. If you're not embarrassed by the first version of your product that you've launched, you've started to late. You'll find your success and you'll find what's working by putting it out in the marketplace, using your success as a test market and allowing yourself to organically grow.

Bobbi Rebell:
All right. Let's talk about your everyday money tip because it's something that a lot of us ... It has to do with, frankly, guilt that we feel because we can't do everything we feel we should and we don't want to let people down.

Kelsey Larsen:
So, I have a vision board. I actually have a physical vision board kind of like we did in middle school.

Bobbi Rebell:
Sure.

Kelsey Larsen:
I put pictures of things that I'm really good at or I will identify things that I need someone else to do. For example, I do not take good photos. I just don't. And my product and my brand, I mean on Instagram, everything has to look great. So, I've been able to find and identify people who are great at it who I can pay to handle that. Even if it's not money that you've got, talking with other women, other mothers, other business owners, people are really willing to help out other individuals who are trying.

Bobbi Rebell:
Kelsey, before I let you go, tell us where people can find out more about you and the company.

Kelsey Larsen:
Yeah. So, we do most of our sales on bapronbaby.com. We are on Amazon. We also ... As far as social media goes, Facebook, Pinterest, Instagram. It's just BapronBaby.

Bobbi Rebell:
And you're also in retailers, right?

Kelsey Larsen:
Yeah. So, local retailers throughout the country. We are in bundles with EzPz on Buy Buy Baby and in Nordstrom.

Bobbi Rebell:
Love it. Thank you so much, Kelsey.

Kelsey Larsen:
Yeah. It was great to be here. Thanks.

Bobbi Rebell:
All right, my friends. Let's get to it. Financial Grownup tip number one. Reach out boldly to people that you admire and can learn from. Be smart about it. Don't stalk anyone, okay? But there is nothing wrong with a few polite emails to someone that you admire. Flattery is a great strategy. You would be surprised how well it works and how few people actually do it. Maybe you're going to get a mentor like Kelsey did and that, in here case, got her into a top retailer for her product. You would be amazed at the kinds of things people will do if you connect with them and you bond with them and make a relationship. People really do want to help other people.

Bobbi Rebell:
Financial Grownup tip number two. If you have a side hustle and are considering going all in as Kelsey did, you gotta do some test marketing first before you go all in as she did. Let's not forget. Kelsey was selling Etsy for a year before she even tried to go big. So while her growth plan, once she was doing it, was pretty bold, it did have a really strong foundation.

Bobbi Rebell:
Finally, I want to thank you guys that have checked out my new podcast, Money in the Morning, with Joe Saul-Sehy. You may know him from his other podcast, Stacking Benjamins. So, Joe and I take a couple of news headlines and we share the lessons from it that we can all learn from and we come up with a big idea, a big takeaway that you can really take with you and hopefully make some positive changes in your financial life and your wellbeing and sometimes just overall happiness.

Bobbi Rebell:
Here's where it gets really interesting and really scary for me. We do it live. We do not cut anything out and we do it in front of you guys on camera on Facebook Live and if you want to be on the show, you can actually participate with your comments, which we integrate into the show. Go to Facebook.com/istackbenjamins. Set your alerts for when we go live. It's really easy to do that. We're working on a regular schedule but set the alerts for now. We would love to see you there. Check out the audio podcast as well, Money in the Morning. That is wherever you enjoy podcasts, just like this this.

Bobbi Rebell:
All right. Big thanks to Kelsey for sharing her story and for helping us all get one step closer to being financial grownups.

Millennial Superstars, Business, Women Entrepreneurs, StartupBobbi Rebell KaufmanFebruary 25, 2019Bib, Apron, BapronBaby, Entrepreneur, Etsy, Business, Debt Free Company, mompreneur

Money Tips On Buying An Online Business

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Full Transcript:

Entrepreneur coach Cait Scudder built a 6 figure business while living abroad overcoming numerous obstacles. She shares her specific strategies to help build a grownup business focused on sustainable product growth and revenue streams.

5 essential ways to create a successful business

Episode Links:

Cait's website - www.caitscudder.com

Cait’s podcast - Born To Rise

Cait’s Ted Talk - www.caitscudder.com/episode/tedxtalk

Follow Cait!

Instagram - @caitscudder

YouTube

Facebook - @caitloneragan

4 key things you need to have to nail down to make working with your BFF work:

Trust

Complementary skills and expertise

Shared vision and shared values

Being in the foxhole

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Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

Noah’s website - www.boweryvaluation.com

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Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission at no extra cost to you. All opinions remain my own.

Kate Edwards, spent a year working as a founder with no salary and then a day before she would get the big pay day, she was shown the door.

You think it would never happen to you- but it can.

Kate's money story

Kate’s money lesson

Kate's everyday money tip

Bobbi’s Financial grownup tips:

Financial Grownup tip number one:

Episode Links:

Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

Kate’s website www.heartbeat.com

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Instagram - @k8eddie

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LinkedIn - @kateavelineedwards

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Instagram - @Heartbeat

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The cash crunch that led to a business that is disrupting the ultra short-term loan space

Travis Holoway started a Solo Funds, aimed at disrupting the short term, small loan industry by leveraging technology and offering a new kind of lending culture.

The lesson here is really to focus on saving

My money tip is if you have the ability, add your teenage child or spouse that may have little or no credit to your credit card account as an authorized user.

About Travis; company Solo Funds

Travis: SoLo in short is a mobile mini exchange created to provide more affordable access to small dollar loans below $1,000.

We function very much like Airbnb for loans, but we were essentially created to disrupt that predatory payday lending industry that you're speaking about.

Bobbi’s Financial Grownup tips:

Episode Links:

Blinkist - Please use our link to support the show and get a free trial.

Check out Travis' website - https://solofunds.com/

Follow Travis!

Instagram - @SoLoFunds

Facebook - @SoLoFundsInc

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In Charlotte's money story you will learn:

“What you think is temporary could be permanent whether it is a boyfriend .. or a business.. what you do in the early days impacts the long term”

In Charlotte’s money lesson you will learn:

In Charlotte's everyday money tip you will learn:

In My Take you will learn:

Episode Links:

Blinkist - The app I’m loving right now. Please use our link to support the show and get a free trial.

www.PlumPrettySugar.com

Follow Charlotte!

Instagram - @PlumPrettySugar

Personal Instagram - @CharlotteJayneHale

Facebook - @PlumPrettySugar

Twitter - @PlumPrettySugar

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As the Financial Grownup Podcast approaches 200 episodes, Bobbi explains why she is shutting down the podcast to focus on her other ventures including the Money in the Morning Podcast, her follow up book to “How to be a Financial Grownup” and what’s next for her growing media company.

Episode Links

The Washington Post article mentioned - How parents of adults can (gently) close the doors to the Bank of Mom and Dad

Money in the Morning podcast

Millennial mompreneur Kelsey Larsen shares her story of taking her home-made bibs from Etsy to mass retail by reaching out to entrepreneurs she admired but did not know, for advice, and in one case, collaboration.