The $15 Million Lesson
January 11, 2017 |
Want to increase the value of your business by up to 71%?
Take the 13-minute survey and get your Value Builder Score
About this episode
Subscribe:
Julie Pickens and her partner created Boogie Wipes, a moistened tissue Moms use. But all was not well in Boogie land—in fact, the partners’ relationship became strained when Hardin announced she wanted out, forcing Pickens to find a buyer.
Julie Pickens and her partner Mindee Hardin created Boogie Wipes, a moistened tissue Moms use so their sick kids can avoid a raw nose in cold season. They patented their formula and won orders from Rite Aid, Walmart and Target leading to annual revenue of $15 million.
But all was not well in Boogie land—in fact, the partners’ relationship became strained when Hardin announced she wanted out, forcing Pickens to find a buyer for their company. The result would leave Pickens disappointed with her exit while partner Hardin had to file for bankruptcy.
Pickens described her exit as “a disappointment” because along the way she had to give up equity and take on debt in order to finance the 60-day terms retailers insisted on. Contrast Boogie Wipes with another consumer product with a cheeky brand, Dollar Shave Club, that used a direct-to-consumer subscription model. The direct model gave them cash when users subscribed and a direct relationship with customers which facilitated cross-selling. Most importantly, Dollar Shave Club’s subscription model gave them a premium valuation. The difference between Boogie Wipes and Dollar Shave Club comes down to the business model, which is something you will think a lot about in Module 5 of The Value Builder System™—get started now by completing Module 1 here.
What follows is a cautionary tale of what happens when partners decide to go their separate ways.
Click to Tweet: Ep. 77 of Built To Sell Radio, The $15 Million Lesson.
To hear the entire episode on iTunes, click here and don’t forget to subscribe! You can also find us on Stitcher , Soundcloud, or anywhere podcasts are found!
At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.
About Our Guest
Often referred to as The Boogie Mom®, Julie Pickens, along with her business partner, developed the first ever saline nose wipe called Boogie Wipes® as a solution for their kids’ sore, red, and runny noses. From this concept, Little Busy Bodies, Inc. was formed in May, 2007. Little Busy Bodies tripled their first year revenue in 2009 at $3.4 million and went on to achieve $10.2 million in 2011. In 2013, Pickens sold her interest in Little Busy Bodies. From there she took a role as VP of marketing for a consumer electronics company in Detroit, MI RFA brands, myCharge. Pickens now shares her entrepreneurial knowledge with other inventors and business owners through speaking engagements and media platforms.
Related to this topic
What Happens When the Big Dog Sells
Anthony Amos and his brother started HydroDog, an Australian mobile dog washing and grooming service. After revolutionizing the industry and growing to more than $10 million in annual revenue, Amos decided it was time to sell.
Yvonne Tocquigny built her advertising agency up over 35 years working with clients like Jeep and Dell. Then in 2015, she got a call asking if she would consider selling. The problem was that her agency had become part of who she was.
How One Pivot Doubled The Value of This Business
James Garvey grew Objective Loyalty from a standing start in 2005 to $2.5 million in EBITDA. When he and his partner decided to sell they were able to quickly double the value when they switched sell tactics.
When to Tell Employees You’re Thinking of Selling
Lois Melbourne and her husband started Acquire Solutions, a software business that helped large companies manage their employees. After 18 years, they had grown to 85 people and received an offer from a private equity firm.
How To Quadruple The Value Of Your Business
Laura Steward, the founder of Guardian Angel Computer Services was told that her business was worth less than 50% of one year’s revenue. Determined to get more for her business, she underwent a makeover focusing on her subscription program.
How EBITDA Adjustments Impact The Value Of Your Business
Ari Ackerman started Bunk1 in 1999 to give parents a way to keep in touch with their kids while they were at summer camp.
How to Hire a CEO Without Losing Your Company
When we discover a vaccine or reliable treatment regime for COVID-19, there will inevitably be an unscrupulous gang of counterfeiters trying to make a quick buck by selling fake remedies.
The Man Behind the $1.3B Sale of Wind Mobile
Anthony Lacavera has started 12 businesses, six of which he has exited. His exits have ranged in value from the $6 million he got for one of his recent start-ups to the $1.3 billion that Wind Mobile sold for.
The Tech Start-Up vs. The Bootstrap Lifestyle
Peter Demangos has started two businesses in the Human Resources sector. One was a bootstrapped insurance brokerage where they sold employee benefits programs to large clients. The other was an HR software company called Collage, where Demangos and his co-founders raised $3.5 million of investment capital and sold three years later for $15 million.
From Technological Obsolescence to a Multi-Million Dollar Exit
From a service no one wanted anymore to a growing business and a strategic buyer, find out how AMI was rebuilt to sell.
In 2001, Adam Torres started Team Dynamix, a software used by colleges and universities to keep their IT department organized.