WEBVTT - It Started with an Allergy: Partake Foods

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<v Speaker 1>For Denise Woodard, her journey into entrepreneurship started with every

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<v Speaker 1>parent's worst nightmare.

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<v Speaker 2>It was a Wednesday afternoon. I was on a conference call.

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<v Speaker 2>Our nanny, Martha, gave Vivi the snack with just two ingredients.

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<v Speaker 2>As soon as she started to eat it, her lips

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<v Speaker 2>started to swell up, her tongue started to swell up.

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<v Speaker 3>She started to.

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<v Speaker 2>Turn blue in our living room. I hear Martha scream

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<v Speaker 2>from my home office and I immediately run out and

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<v Speaker 2>I see she's like swelling up like a balloon right

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<v Speaker 2>in front of my eyes and clearly couldn't breathe. I

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<v Speaker 2>thought my daughter was going to die.

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<v Speaker 1>This is the Unshakables and I'm Ben Walter, CEO of

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<v Speaker 1>Chase for Business, and.

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<v Speaker 3>I'm Tanya Nepo, a lawyer and consultant for business owners.

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<v Speaker 1>On the Unshakables, we're sharing the daring stories of small

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<v Speaker 1>business owners facing their crisis points and telling the stories

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<v Speaker 1>of how they got through it. Hi, Tanya, Hey Ben Tanya.

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<v Speaker 1>This episode is a one especially for anyone interested in

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<v Speaker 1>raising some serious capital for the company. Today, we have

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<v Speaker 1>the story of Denise Woodard, who, after receiving eighty six

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<v Speaker 1>knows from investors has raised over twenty three million dollars in.

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<v Speaker 3>Capital twenty three million. Huh. I can't wait to hear

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<v Speaker 3>this one.

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<v Speaker 1>On today's episode Partake Foods out of Los Angeles, California.

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<v Speaker 1>So many small businesses are family businesses, and for Denise Woodard,

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<v Speaker 1>founder and CEO of Partake Foods, her family, specifically her

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<v Speaker 1>daughter Vivi, was the whole reason she started a company

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<v Speaker 1>in the first place.

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<v Speaker 2>When Vivi was around eight months old, her first Thanksgiving,

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<v Speaker 2>she had a dish that had baked egg in it,

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<v Speaker 2>and she ended up throwing up like fourteen times over

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<v Speaker 2>five hours, and we ended up rushing her to the

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<v Speaker 2>emergency room. We learned that she had several food allergies.

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<v Speaker 2>One of the things that she wasn't allergic to was peanuts,

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<v Speaker 2>and so the recommendation of our owne ellogist was introduced

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<v Speaker 2>peanuts as soon as possible, and so shortly after her

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<v Speaker 2>first birthday, she had a really simple snack with two ingredients,

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<v Speaker 2>just peanuts and corn, and she had an anaphylactic response immediately.

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<v Speaker 1>Wow, that must have been terrifying.

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<v Speaker 2>It was the scariest five minutes of my life.

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<v Speaker 1>Viv was given two EpiPens and rushed to the emergency room. Thankfully,

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<v Speaker 1>she was fine, but they were clearly living in a

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<v Speaker 1>new reality.

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<v Speaker 2>I felt like inspector Gadget. I felt like a detective

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<v Speaker 2>who had to dig and dig and dig. While the

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<v Speaker 2>ingredients may have looked safe, then there could be the

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<v Speaker 2>concern of it's made on the same equipment with tree nuts.

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<v Speaker 2>And so I found myself calling food manufacturers and trying

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<v Speaker 2>to join all these communities online with other food allergy

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<v Speaker 2>parents to learn what was safe for their kids. And

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<v Speaker 2>so I went into like overdrive in terms of trying

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<v Speaker 2>to always be prepared to make sure that she was safe.

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<v Speaker 1>Of course, Denise was worried about Viv's health, but she

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<v Speaker 1>was also worried about the social stress the allergies would

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<v Speaker 1>create for her daughter.

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<v Speaker 2>I started to think about the emotional impact that having

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<v Speaker 2>food allergies would have on her, how she wouldn't be

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<v Speaker 2>able to safely or confidently participate in playdates and celebrations

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<v Speaker 2>and birthday parties and all the things that involve food.

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<v Speaker 2>And dreamed of like a brand that was cool enough

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<v Speaker 2>that people without food allergies would also willingly choose to

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<v Speaker 2>eat it, And I couldn't find it.

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<v Speaker 1>With nowhere else to turn, she decided to take matters

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<v Speaker 1>into her own hands.

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<v Speaker 2>I was so frustrated with the lack of options that

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<v Speaker 2>I could find. I immediately went to all the natural

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<v Speaker 2>food stores in our neighborhood, trying to find safe things

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<v Speaker 2>that she could eat. But all the fun stuff that

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<v Speaker 2>kids want to eat and share became off limits, and

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<v Speaker 2>I wanted to do something about that.

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<v Speaker 1>Denise founded Partake Foods with a simple goal in mind,

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<v Speaker 1>make food better so anyone could partake. Though she faced

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<v Speaker 1>a dwindling list of acceptable ingredients, Denise had to find

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<v Speaker 1>a way to make something that would work, so she

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<v Speaker 1>started by experimenting in the kitchen with her nanny, Martha.

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<v Speaker 2>I remember standing in my kitchen covered in flour with

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<v Speaker 2>cookies that looked like dog food, and I quickly realized

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<v Speaker 2>that I was not the person to commercialize this product.

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<v Speaker 2>So it was very clear that we needed the help

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<v Speaker 2>of a professional now.

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<v Speaker 1>Fortunately, Denise did have experience in commercial food and beverage.

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<v Speaker 1>In fact, she'd been at Coca Cola for a decade

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<v Speaker 1>working in sales, but manufacturing food that wasn't her specialty,

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<v Speaker 1>So she got in touch with a food scientist on

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<v Speaker 1>LinkedIn who helped bring the first few products of Partake

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<v Speaker 1>Foods to life.

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<v Speaker 2>Our first product was three flavors of crunchy cookies. We

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<v Speaker 2>had sprouted grain, chocolate chip, sweet potato, millet, and carrot oat.

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<v Speaker 1>Denise finally quit her job and started demoing at natural

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<v Speaker 1>food stores.

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<v Speaker 2>I'd show up to the store and I'd have this

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<v Speaker 2>little folding table and a five dollars tablecloth, and I'd

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<v Speaker 2>show up in my Partake T shirt and I'd share

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<v Speaker 2>about the story. I'd try to convince them to try

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<v Speaker 2>the product and kind of rinse and repeat every day

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<v Speaker 2>for several months.

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<v Speaker 1>Now, Denise received unanimous feedback about her product names, as in,

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<v Speaker 1>they didn't se so good. I mean, imagine seeing a

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<v Speaker 1>package on the shelf, one for a chocolate chip cookie

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<v Speaker 1>and then one for a sprouted grain cookie. Now which

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<v Speaker 1>would you choose.

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<v Speaker 2>I quickly got that feedback of these products taste great,

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<v Speaker 2>but if I saw this on the shelf and it

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<v Speaker 2>was called carrot oat, I would never want to eat it.

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<v Speaker 2>So then those flavor names changed to be much more indulgent,

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<v Speaker 2>like chocolate Deliciousness or whatever, chocolate chip and ginger snap

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<v Speaker 2>and oat meal and like very like traditional indulgent cookie

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<v Speaker 2>flavor names, and we also updated the packaging to match that.

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<v Speaker 1>Now, she'd been working in sales for a long time,

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<v Speaker 1>so she knew how to get products on the shelf,

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<v Speaker 1>but getting those products sold and into people's homes that

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<v Speaker 1>was a whole nother story.

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<v Speaker 2>What I quickly saw was that there was a high

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<v Speaker 2>barrier to entry with the food allergy consumer, and so

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<v Speaker 2>while they liked the idea in theory, we hadn't really

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<v Speaker 2>built any trust or brand equity with that consumer.

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<v Speaker 3>Hey, Ben, can we pause for a second. This one

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<v Speaker 3>really hits.

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<v Speaker 1>Home for me. Why Tony, you tell me I have

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<v Speaker 1>a younger.

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<v Speaker 3>Brother who had severe, severe food allergies. I'm talking nuts, fish, dairy,

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<v Speaker 3>all the stuff we like, right, And when he was

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<v Speaker 3>a child, there were a few life or death situations

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<v Speaker 3>that still to this day make me emotional when I

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<v Speaker 3>think about them. And so with my brother, not only

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<v Speaker 3>did we have to be very mindful of the ingredients

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<v Speaker 3>listed on the back of any food packaging, but also

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<v Speaker 3>we had to be very mindful of where the products

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<v Speaker 3>were manufactured. Could there possibly have been some cross contamination

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<v Speaker 3>with nuts or some other thing that he's allergic to.

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<v Speaker 3>We were looking at all these things and constantly had

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<v Speaker 3>to do so in order to feel confident about the

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<v Speaker 3>food that we were giving him. I mean, when it's

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<v Speaker 3>literally life or death, which it was, you have to

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<v Speaker 3>pay very close attention to these things. So this really

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<v Speaker 3>matters to me.

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<v Speaker 1>Yeah, I can only imagine. You know, if you're scared

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<v Speaker 1>for the safety of your child, good enough isn't good enough? Right,

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<v Speaker 1>there's only implicit trust or nothing.

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<v Speaker 3>That's so true. So then what happened next.

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<v Speaker 1>Denise didn't have brand equity yet, and she knew it

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<v Speaker 1>would take time to build, but there was a bright spot.

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<v Speaker 1>The demand was much broader than she thought. Her food

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<v Speaker 1>wasn't just for people like Vivi who were restricted by allergies.

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<v Speaker 2>Our products appealed to much broader consumer groups. Folks who

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<v Speaker 2>were looking for health conscious products because they were looking

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<v Speaker 2>to eat gluten free or plant based out of personal preference,

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<v Speaker 2>parents who needed school safe snacks even if their child

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<v Speaker 2>didn't have food allergies, or people who wanted to support

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<v Speaker 2>a woman or minority owned business, and then fell in

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<v Speaker 2>love with the products.

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<v Speaker 1>And by the end of her first year, Denise had

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<v Speaker 1>her product on the shelf. In fifty stores.

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<v Speaker 2>That gave me the confidence to take things to what

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<v Speaker 2>I perceived to be the next level, which for me

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<v Speaker 2>was trying to get into Whole Foods and getting into

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<v Speaker 2>a regional grocery account.

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<v Speaker 1>She went back to her tried and true method cold

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<v Speaker 1>calling and perseverance. In fact, she reached out to every

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<v Speaker 1>single category manager at Whole Foods.

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<v Speaker 2>There was an employee in a Boulder, Colorado store who

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<v Speaker 2>I think took pity on me or saw something interesting

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<v Speaker 2>in my email and passed on to the appropriate contact.

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<v Speaker 1>And finally, after months and months of outreach, Denise got

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<v Speaker 1>a yes.

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<v Speaker 2>I remember getting the email and my mom was visiting

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<v Speaker 2>and my husband was home, and I just remember screaming

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<v Speaker 2>and running through the apartment, like we got in, we

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<v Speaker 2>got in, we got in, We're going into Whole Foods.

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<v Speaker 2>This is it. Literally, Like the next week we got

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<v Speaker 2>a yes from Wegman's as well, which was actually going

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<v Speaker 2>to kind of triple the store account that we were in,

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<v Speaker 2>and so I was just super super excited. Quickly that

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<v Speaker 2>turned into Okay, now the work begins.

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<v Speaker 1>The job to be done was to fill the demand

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<v Speaker 1>for all these new orders. It was a lot of work.

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<v Speaker 1>It also required more money.

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<v Speaker 2>I never said, okay, let's empty the savings account and

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<v Speaker 2>put everything into partake. It would be like, oh, I

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<v Speaker 2>thought the distributor would pay me this week, and I

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<v Speaker 2>have to buy one thousand dollars worth of sugar. Let

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<v Speaker 2>me pull one thousand dollars out of the savings account.

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<v Speaker 2>And it was that continuous drain. As I started to

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<v Speaker 2>see dwindling down, I started to think, oh shit.

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<v Speaker 1>But then she had an idea.

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<v Speaker 2>I remember reading an article about the founder of Tascha

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<v Speaker 2>Beauty and she talked about making the tough decision to

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<v Speaker 2>sell her engagement ring. And I remember being like, WOI la.

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<v Speaker 2>And I called my husband over and I was like,

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<v Speaker 2>what do you think about this? And oddly, I guess

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<v Speaker 2>he and I were both super supportive of it. And

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<v Speaker 2>I sent him to the Diamond District in New York

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<v Speaker 2>and he came home with several thousand dollars and that

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<v Speaker 2>continued to keep the business afloat.

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<v Speaker 3>Ben I got to jump in here. I know we

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<v Speaker 3>give a lot of sound advice on this show, but

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<v Speaker 3>I think tip number one, should we get a partner

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<v Speaker 3>who doesn't bet an eye when you suggest you sell

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<v Speaker 3>your engagement ring? To buy more sugar for cookies.

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<v Speaker 1>Right, I'll call my wife right now and let her know.

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<v Speaker 3>I gotta say, Denise has my favorite type of small

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<v Speaker 3>business crisis.

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<v Speaker 1>What crisis getting big too fast?

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<v Speaker 3>Precisely the moment when you start to consider or in

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<v Speaker 3>Denise's cases, have no other choice but to consider mentor capital.

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<v Speaker 1>All right, and I think you're cheating. I think you

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<v Speaker 1>know what happens next.

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<v Speaker 3>Yeah, let's hear it.

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<v Speaker 1>Denise knew it was time to get serious about fundraising.

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<v Speaker 2>I think it was at the moment where I was like, Okay,

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<v Speaker 2>if I'm selling my engagement ring, clearly we need to

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<v Speaker 2>find some investors. I knew nothing about venture capital when

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<v Speaker 2>I started to raise money for Partake, and I think

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<v Speaker 2>that was the scariest part. It felt like people were

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<v Speaker 2>speaking a completely different language. I'd watched Shark Tank religiously,

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<v Speaker 2>but I still didn't fully understand it. So what I

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<v Speaker 2>immediately did was started reaching out to other founders who'd

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<v Speaker 2>raised capital to try to understand more about what they

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<v Speaker 2>would recommend in terms of like what types of capital,

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<v Speaker 2>what types of investors. And I realized quickly that it's

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<v Speaker 2>very much, for lack of better words, an old boys Club.

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<v Speaker 2>I feel like some of the language isn't that complicated.

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<v Speaker 2>It's almost like it's constructed to keep people out.

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<v Speaker 1>But that didn't stop Denise.

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<v Speaker 2>I literally was just like cold emailing people on LinkedIn.

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<v Speaker 2>A lot of those folks were allies. They were white

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<v Speaker 2>men who had done it before, who were willing to

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<v Speaker 2>explain the code to me and to give me confidence

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<v Speaker 2>to go into a room with the same like swagger

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<v Speaker 2>that they would and share why I deserved to get

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<v Speaker 2>this funding.

0:11:14.920 --> 0:11:17.200
<v Speaker 1>She worked with her attorney to decide how to structure

0:11:17.200 --> 0:11:20.240
<v Speaker 1>her fundraise. Denise didn't know what her company was worth,

0:11:20.400 --> 0:11:21.920
<v Speaker 1>so she didn't want to put a price on the

0:11:21.920 --> 0:11:25.280
<v Speaker 1>shares just yet, so she decided to use a convertible

0:11:25.320 --> 0:11:28.400
<v Speaker 1>note for her fundraising. Denise needed to raise six hundred

0:11:28.440 --> 0:11:30.880
<v Speaker 1>thousand dollars, and she needed to do it fast.

0:11:32.760 --> 0:11:35.840
<v Speaker 2>At that point, we were personally all tapped out. When

0:11:35.840 --> 0:11:38.520
<v Speaker 2>we started. We'd had a really nice savings cushion in

0:11:38.559 --> 0:11:41.880
<v Speaker 2>four oh one k's and my husband had a fantastic job.

0:11:42.160 --> 0:11:44.840
<v Speaker 2>In late twenty eighteen, he lost his job, and so

0:11:44.960 --> 0:11:48.360
<v Speaker 2>I started to feel the financial pressure like crushing me.

0:11:48.760 --> 0:11:51.600
<v Speaker 2>I was really worried. I was really anxious I was

0:11:51.679 --> 0:11:54.760
<v Speaker 2>really scared, and for me to continue to keep the

0:11:54.800 --> 0:11:57.480
<v Speaker 2>business going, I was going to need to raise more

0:11:57.520 --> 0:11:59.160
<v Speaker 2>capital and I was going to need to be able

0:11:59.200 --> 0:12:00.000
<v Speaker 2>to do it quickly.

0:12:01.200 --> 0:12:03.679
<v Speaker 1>For a brief moment, Denise considered going back to her

0:12:03.720 --> 0:12:06.280
<v Speaker 1>corporate job to make more money, but she really didn't

0:12:06.320 --> 0:12:08.760
<v Speaker 1>want to do that. She knew if she could crack

0:12:08.800 --> 0:12:11.760
<v Speaker 1>the investor code, well, then they could really go for it.

0:12:13.280 --> 0:12:16.800
<v Speaker 2>The angel investor circuit was going horribly for us. I

0:12:16.920 --> 0:12:20.840
<v Speaker 2>was not able to raise any additional capital, and it

0:12:20.880 --> 0:12:23.760
<v Speaker 2>was really demoralizing. I was getting no for a lot

0:12:23.840 --> 0:12:26.600
<v Speaker 2>of different reasons. Sometimes I would get a no because

0:12:26.960 --> 0:12:29.520
<v Speaker 2>this is a too niche of a category, or some

0:12:29.559 --> 0:12:32.280
<v Speaker 2>people would say, oh, this is too crowded, or there

0:12:32.280 --> 0:12:34.320
<v Speaker 2>would be a well come back when you get to

0:12:34.360 --> 0:12:36.520
<v Speaker 2>a million dollars in sales, and I would think, well,

0:12:36.559 --> 0:12:38.600
<v Speaker 2>I can't get to a million dollars in sales if

0:12:38.640 --> 0:12:41.000
<v Speaker 2>I don't have any more money. And so it was

0:12:41.120 --> 0:12:46.000
<v Speaker 2>really really frustrating, felt like this horrible, exhausting cycle that

0:12:46.120 --> 0:12:47.240
<v Speaker 2>wasn't going anywhere.

0:12:48.880 --> 0:12:52.600
<v Speaker 1>She kept pitching, kept getting turned down. Then Denise remembered

0:12:52.640 --> 0:12:55.600
<v Speaker 1>an article she read about jay z Yes that Jay

0:12:55.679 --> 0:12:57.400
<v Speaker 1>z He was starting a venture fund.

0:12:58.120 --> 0:13:01.000
<v Speaker 2>One of our dearest friends, who's also so an investor

0:13:01.000 --> 0:13:03.679
<v Speaker 2>in our business, works in the music industry. And I

0:13:03.679 --> 0:13:06.840
<v Speaker 2>remember saying, do you know jay Z? And he's like, no, no,

0:13:07.040 --> 0:13:09.320
<v Speaker 2>I don't. But he happened to know one of his

0:13:09.440 --> 0:13:12.520
<v Speaker 2>business partners and they were willing to take the call.

0:13:12.800 --> 0:13:14.280
<v Speaker 2>And I was like, you know, I'm going to be

0:13:14.280 --> 0:13:16.920
<v Speaker 2>in La soon. I'd love to get together, just hoping

0:13:16.960 --> 0:13:20.160
<v Speaker 2>they would agree to take a meeting, and they did so.

0:13:20.160 --> 0:13:22.560
<v Speaker 1>She met with jay Z's partner and right from the

0:13:22.559 --> 0:13:26.199
<v Speaker 1>beginning this conversation it felt totally different.

0:13:27.840 --> 0:13:30.559
<v Speaker 2>It was so different than the Angel pitches in that,

0:13:30.679 --> 0:13:34.080
<v Speaker 2>like all of the Angel chats typically started with what's

0:13:34.120 --> 0:13:37.280
<v Speaker 2>your gross margin, what's the tam And this conversation was like,

0:13:37.360 --> 0:13:39.680
<v Speaker 2>tell me about where you're from, tell me about why

0:13:39.679 --> 0:13:43.120
<v Speaker 2>you're building this business. And I walked away so excited

0:13:43.360 --> 0:13:47.520
<v Speaker 2>and so hopeful. And then in March of twenty nineteen,

0:13:47.679 --> 0:13:50.960
<v Speaker 2>we got a term sheet that Marcy Venture Partners was

0:13:51.080 --> 0:13:53.679
<v Speaker 2>interested in leading a seed round of funding for us.

0:13:54.040 --> 0:13:57.120
<v Speaker 1>That conversation it changed everything for Denise.

0:13:57.600 --> 0:14:00.280
<v Speaker 2>A lot of the groups that had said no, the

0:14:00.320 --> 0:14:03.520
<v Speaker 2>announcement that we'd closed the seed round came out. A

0:14:03.559 --> 0:14:05.360
<v Speaker 2>lot of those folks came back and they were like,

0:14:05.559 --> 0:14:07.880
<v Speaker 2>you know, it wasn't a good time when you pitched before,

0:14:07.920 --> 0:14:10.160
<v Speaker 2>but if you have room now, we'd love to invest.

0:14:10.160 --> 0:14:12.920
<v Speaker 2>And I realized, like, maybe there wasn't something wrong with

0:14:12.960 --> 0:14:15.440
<v Speaker 2>me in the business, and they said no. For another reason,

0:14:16.000 --> 0:14:19.000
<v Speaker 2>it gave me some confidence because of that, but practically

0:14:19.080 --> 0:14:21.360
<v Speaker 2>it also gave me the capital we needed to begin

0:14:21.400 --> 0:14:23.760
<v Speaker 2>to scale the business and to begin to hire people.

0:14:24.000 --> 0:14:27.560
<v Speaker 2>And we raise one million dollars.

0:14:28.360 --> 0:14:31.160
<v Speaker 1>And soon she received a massive order from a retailed

0:14:31.280 --> 0:14:33.360
<v Speaker 1>giant Target.

0:14:33.720 --> 0:14:36.720
<v Speaker 2>I read the email and I reread the email, and

0:14:36.760 --> 0:14:38.320
<v Speaker 2>I just like, stand up and sit down, and stand

0:14:38.400 --> 0:14:39.680
<v Speaker 2>up and sit down. I don't know what to do

0:14:39.720 --> 0:14:42.880
<v Speaker 2>with myself. And we had one other full time employee

0:14:42.880 --> 0:14:45.280
<v Speaker 2>in the business, so I immediately call her and I tell

0:14:45.280 --> 0:14:47.400
<v Speaker 2>her what's happened, and like, can we afford this? Can

0:14:47.440 --> 0:14:50.080
<v Speaker 2>we do this? Can we make this many cookies? And

0:14:50.200 --> 0:14:52.240
<v Speaker 2>she's like, I think so. And we needed to make

0:14:52.280 --> 0:14:54.720
<v Speaker 2>a decision that week, and we went for it.

0:14:55.640 --> 0:14:58.760
<v Speaker 1>In May of twenty twenty, George Floyd was tragically murdered.

0:14:58.760 --> 0:15:01.240
<v Speaker 1>Tell us how that impacted your family and the business.

0:15:01.920 --> 0:15:05.240
<v Speaker 2>For my family, you know, I think my husband living

0:15:05.280 --> 0:15:08.880
<v Speaker 2>as a black man in America and as a black family, like,

0:15:08.960 --> 0:15:14.080
<v Speaker 2>we felt so angered and saddened and wanted to channel

0:15:14.400 --> 0:15:18.560
<v Speaker 2>those feelings into something positive and into positive change. And

0:15:18.640 --> 0:15:21.640
<v Speaker 2>so there was some developments in the business. We launched

0:15:21.680 --> 0:15:25.800
<v Speaker 2>an HBCU fellowship program aimed at increasing diversity in the

0:15:25.800 --> 0:15:28.200
<v Speaker 2>food industry, and a lot of that came through kind

0:15:28.240 --> 0:15:30.640
<v Speaker 2>of our feelings about George Floyd's murder.

0:15:30.920 --> 0:15:31.560
<v Speaker 3>And then on the.

0:15:31.520 --> 0:15:37.200
<v Speaker 2>Business front, we received an amount of inbound from potential investors,

0:15:37.240 --> 0:15:42.680
<v Speaker 2>potential retailers, influencers, press, unlike anything I could have ever imagined.

0:15:45.320 --> 0:15:50.080
<v Speaker 1>Surprisingly, twenty twenty was Partake Food's biggest year yet. They

0:15:50.120 --> 0:15:52.760
<v Speaker 1>started the year in three hundred and fifty stores and

0:15:52.920 --> 0:15:56.480
<v Speaker 1>ended in five thousand and got serious interest from investors.

0:15:57.080 --> 0:15:59.560
<v Speaker 2>It's like a total one eighty from when I was

0:15:59.640 --> 0:16:02.080
<v Speaker 2>raising the seed round of funding, where I was like

0:16:02.160 --> 0:16:04.800
<v Speaker 2>begging for scraps, and I feel like I get to

0:16:04.840 --> 0:16:07.000
<v Speaker 2>be selective about who I want to partner with.

0:16:07.640 --> 0:16:10.640
<v Speaker 1>Since then, Denise has raised over twenty three million dollars

0:16:10.640 --> 0:16:12.040
<v Speaker 1>in capital for Partake Foods.

0:16:12.520 --> 0:16:14.600
<v Speaker 2>When I think back about why I started the company,

0:16:14.880 --> 0:16:17.840
<v Speaker 2>it wasn't nutritional. It wasn't taste, it was the emotions.

0:16:17.880 --> 0:16:20.320
<v Speaker 2>Like so much of your childhood experience, so much of

0:16:20.320 --> 0:16:24.240
<v Speaker 2>your life experience is built in this, like emotions and

0:16:24.280 --> 0:16:27.680
<v Speaker 2>the camaraderie and the celebration that comes with enjoying food together.

0:16:27.880 --> 0:16:29.960
<v Speaker 2>And when I hear notes from our customers about how

0:16:29.960 --> 0:16:32.640
<v Speaker 2>they could have s'mores for the first time, or bacup

0:16:32.680 --> 0:16:35.560
<v Speaker 2>pie crust, or enjoy cookies at a birthday party, that's

0:16:35.600 --> 0:16:37.280
<v Speaker 2>the reason I started the business.

0:16:38.520 --> 0:16:41.440
<v Speaker 1>Today, Partake Foods has over ten products in their line

0:16:41.480 --> 0:16:45.160
<v Speaker 1>and is available in thirteen thousand stores across the country.

0:16:46.040 --> 0:16:48.560
<v Speaker 1>You can find them on multiple airlines and even in

0:16:48.600 --> 0:16:55.440
<v Speaker 1>Ben and Jerry's ice cream.

0:16:55.600 --> 0:16:55.840
<v Speaker 2>Wow.

0:16:55.920 --> 0:16:59.480
<v Speaker 3>Then she made some major strides, she really did. There's

0:16:59.520 --> 0:17:03.200
<v Speaker 3>so many parents and caretakers going through that it has

0:17:03.240 --> 0:17:05.879
<v Speaker 3>become a major concern for folks. So this is a

0:17:05.960 --> 0:17:07.600
<v Speaker 3>very real solution that she's provided.

0:17:07.920 --> 0:17:11.520
<v Speaker 1>I think when there are challenges with food, trust becomes everything.

0:17:11.600 --> 0:17:14.080
<v Speaker 1>Because there are a lot of things you do once

0:17:14.119 --> 0:17:16.440
<v Speaker 1>a week, once a month, maybe even once a year.

0:17:16.520 --> 0:17:19.120
<v Speaker 1>Food's not like that. Foods multiple times a day. It's

0:17:19.160 --> 0:17:21.399
<v Speaker 1>always in our minds. It's a big part of our

0:17:21.440 --> 0:17:23.520
<v Speaker 1>lives physically, but it's also a big part of our

0:17:23.520 --> 0:17:26.280
<v Speaker 1>lives socially, So if you can't trust in the food

0:17:26.280 --> 0:17:28.679
<v Speaker 1>brands that you're buying and that you're consuming, it's a

0:17:28.680 --> 0:17:30.520
<v Speaker 1>real issue for consumers. And so you know, she had

0:17:30.520 --> 0:17:32.240
<v Speaker 1>a pretty big trust barrier she had to get up

0:17:32.240 --> 0:17:34.520
<v Speaker 1>over because that's a community that always has trust front

0:17:34.520 --> 0:17:35.520
<v Speaker 1>and center in their minds.

0:17:35.720 --> 0:17:38.199
<v Speaker 3>Yeah, as I said earlier, my younger brother has severe

0:17:38.280 --> 0:17:41.000
<v Speaker 3>food allergies and still does to this day. I mean

0:17:41.200 --> 0:17:43.880
<v Speaker 3>even as an adult, he has to be very, very

0:17:43.880 --> 0:17:46.959
<v Speaker 3>particular about what he eats. So I love that Denise

0:17:46.960 --> 0:17:49.199
<v Speaker 3>brought these products to the market and that they're products

0:17:49.200 --> 0:17:50.119
<v Speaker 3>that people can trust.

0:17:50.480 --> 0:17:52.159
<v Speaker 1>I think there were some good lessons in there in

0:17:52.240 --> 0:17:54.160
<v Speaker 1>terms of how she brought her product to the market,

0:17:54.600 --> 0:17:57.920
<v Speaker 1>how she earned that trust over time, how she stepstoned

0:17:57.960 --> 0:18:00.119
<v Speaker 1>into it. And I think with something like this, you

0:18:00.119 --> 0:18:02.080
<v Speaker 1>can imagine a big food brand goes in and they

0:18:02.160 --> 0:18:04.560
<v Speaker 1>launch a big marketing blitz and it says this is safety,

0:18:04.640 --> 0:18:06.560
<v Speaker 1>and they have that brand equity already and they're able

0:18:06.560 --> 0:18:08.159
<v Speaker 1>to build that. She didn't have any of that, so

0:18:08.440 --> 0:18:10.119
<v Speaker 1>she had to earn that trust along the way, and

0:18:10.160 --> 0:18:12.480
<v Speaker 1>that's not an easy thing to do, but she sort

0:18:12.520 --> 0:18:14.560
<v Speaker 1>of scratched away at it until she got there. And

0:18:14.600 --> 0:18:17.159
<v Speaker 1>I think the authenticity of her story and where she

0:18:17.240 --> 0:18:19.239
<v Speaker 1>was coming from and how the product evolved gave her

0:18:19.280 --> 0:18:20.920
<v Speaker 1>the credibility to do that over time.

0:18:21.000 --> 0:18:23.399
<v Speaker 3>And I like the term scratched away because that's really

0:18:23.480 --> 0:18:26.800
<v Speaker 3>how it felt like. She had to make little strides,

0:18:26.840 --> 0:18:29.359
<v Speaker 3>be open, and of course pivot. I thought that was

0:18:29.400 --> 0:18:31.040
<v Speaker 3>a really great part of her story, the fact that

0:18:31.080 --> 0:18:34.760
<v Speaker 3>she was able to make adjustments and she learned about

0:18:34.800 --> 0:18:38.000
<v Speaker 3>who her target market was and was open to her

0:18:38.000 --> 0:18:41.040
<v Speaker 3>business becoming something other than what she initially thought it

0:18:41.080 --> 0:18:44.040
<v Speaker 3>was going to be. I liked her openness and her flexibility.

0:18:44.240 --> 0:18:46.520
<v Speaker 1>That's a really hard balance to get right, you know.

0:18:46.880 --> 0:18:48.840
<v Speaker 1>On the one hand, I hear people say, stay true

0:18:48.920 --> 0:18:52.119
<v Speaker 1>to what you originally set out to do, and be

0:18:52.200 --> 0:18:54.520
<v Speaker 1>true to your original product and your original audience, and

0:18:54.560 --> 0:18:56.639
<v Speaker 1>she kind of couldn't do that because it wasn't a

0:18:56.640 --> 0:18:59.040
<v Speaker 1>big enough market. Right. What she realized of her time

0:18:59.080 --> 0:19:01.200
<v Speaker 1>is she could be true to that while also catering

0:19:01.240 --> 0:19:03.080
<v Speaker 1>to a larger market. So she managed to throw that

0:19:03.119 --> 0:19:05.520
<v Speaker 1>needle really well because what she didn't do was compromise

0:19:05.600 --> 0:19:07.960
<v Speaker 1>on her original audience. She stayed with it. She kept

0:19:07.960 --> 0:19:11.280
<v Speaker 1>her products completely allagen free and stayed true to that,

0:19:11.400 --> 0:19:13.560
<v Speaker 1>but in a way that appealed to a broader audience

0:19:13.600 --> 0:19:16.520
<v Speaker 1>that grew her dressable market without compromising on the core

0:19:16.600 --> 0:19:17.400
<v Speaker 1>value proposition.

0:19:17.640 --> 0:19:20.480
<v Speaker 3>And I think that the openness and her willingness to

0:19:20.560 --> 0:19:23.760
<v Speaker 3>learn and getting out there and listening to what people

0:19:23.760 --> 0:19:26.840
<v Speaker 3>were saying about her product, her seeing who was finding

0:19:26.920 --> 0:19:29.320
<v Speaker 3>the product to be interesting, I thought that was a

0:19:29.359 --> 0:19:31.560
<v Speaker 3>really great entrepreneurial move on her part.

0:19:31.720 --> 0:19:33.399
<v Speaker 1>I think it was. The other thing I give her

0:19:33.440 --> 0:19:36.600
<v Speaker 1>a ton of credit for is capital pee patients. You know,

0:19:36.960 --> 0:19:39.760
<v Speaker 1>you can imagine when you start a business. Rather than

0:19:39.800 --> 0:19:41.960
<v Speaker 1>just quitting her job and running out there and having

0:19:42.040 --> 0:19:43.760
<v Speaker 1>to make it all go in a short period of

0:19:43.760 --> 0:19:46.119
<v Speaker 1>time and running to market, she took her time in

0:19:46.160 --> 0:19:48.720
<v Speaker 1>a couple of ways. She took her time by keeping

0:19:48.800 --> 0:19:50.840
<v Speaker 1>a job on the side for a while, which helped

0:19:50.840 --> 0:19:52.880
<v Speaker 1>her earn some money and helped her build the business

0:19:53.040 --> 0:19:56.400
<v Speaker 1>more methodically. She took her time getting her product right

0:19:56.600 --> 0:19:58.560
<v Speaker 1>before she went big and launched it and tried to

0:19:58.600 --> 0:20:02.240
<v Speaker 1>sell it beyond its capabilities, beyond her manufacturing capabilities. She

0:20:02.359 --> 0:20:04.760
<v Speaker 1>took her time from an equity perspective, which helped her

0:20:04.800 --> 0:20:06.639
<v Speaker 1>preserve her equity in the business. She didn't just go

0:20:06.680 --> 0:20:08.479
<v Speaker 1>out and raise a bunch of money that deluted her

0:20:08.520 --> 0:20:11.440
<v Speaker 1>down right away. So you know, as fast as she moved,

0:20:11.480 --> 0:20:14.000
<v Speaker 1>and she did move pretty fast, I think she found

0:20:14.000 --> 0:20:17.160
<v Speaker 1>a good balance between pace and patience, and I think

0:20:17.200 --> 0:20:18.640
<v Speaker 1>her patience has really paid off.

0:20:18.720 --> 0:20:21.280
<v Speaker 3>It just makes me think about myself as a business

0:20:21.320 --> 0:20:23.600
<v Speaker 3>owner and other business owners and just how we learn

0:20:23.680 --> 0:20:26.720
<v Speaker 3>to strike that balance, how we learn to make the

0:20:26.760 --> 0:20:30.760
<v Speaker 3>appropriate adjustments, consider timing. There's so many things to think

0:20:30.800 --> 0:20:33.880
<v Speaker 3>about when you are as you're trying to grow. How

0:20:33.920 --> 0:20:35.760
<v Speaker 3>have you seen people strike that balance?

0:20:36.000 --> 0:20:38.639
<v Speaker 1>I think the way that people are successful in that

0:20:38.800 --> 0:20:41.800
<v Speaker 1>is they find ways to prove product market fit. So

0:20:41.840 --> 0:20:44.520
<v Speaker 1>they find ways to prove that their product resonates with

0:20:44.560 --> 0:20:47.080
<v Speaker 1>the right kinds of customers in the right way, number one,

0:20:47.680 --> 0:20:49.520
<v Speaker 1>and to prove to themselves that they can meet the

0:20:49.520 --> 0:20:51.560
<v Speaker 1>supply side of the equation. You know, you have to

0:20:51.560 --> 0:20:53.960
<v Speaker 1>have both supply and demand to run a business, and

0:20:54.000 --> 0:20:56.200
<v Speaker 1>you have to have confidence in both before you press

0:20:56.240 --> 0:20:59.280
<v Speaker 1>the gas pedal. The people I've seen do it really well,

0:20:59.440 --> 0:21:01.880
<v Speaker 1>generally don't have it perfectly right the first time. That's

0:21:01.920 --> 0:21:04.240
<v Speaker 1>more luck than skill, and so they find ways to

0:21:04.320 --> 0:21:06.560
<v Speaker 1>d risk as they go. And I think that's a

0:21:06.560 --> 0:21:09.000
<v Speaker 1>guiding principle that small business owners can have, which is,

0:21:09.480 --> 0:21:11.800
<v Speaker 1>what can I do to de risk what I'm trying

0:21:11.840 --> 0:21:14.280
<v Speaker 1>to do while I learn? And the more you can

0:21:14.320 --> 0:21:16.760
<v Speaker 1>do to take risk out of the business while you

0:21:16.840 --> 0:21:18.600
<v Speaker 1>learn those lessons, the better off you're going to be

0:21:18.640 --> 0:21:20.840
<v Speaker 1>ultimately from the perspective of how much equity you have,

0:21:20.920 --> 0:21:23.440
<v Speaker 1>from the perspective of how much market credibility you have,

0:21:24.040 --> 0:21:26.040
<v Speaker 1>from the perspective of how much goodwill you have with

0:21:26.080 --> 0:21:28.720
<v Speaker 1>your partners. The more that you can de risk while

0:21:28.720 --> 0:21:31.480
<v Speaker 1>you learn those lessons, the more runway you're going to

0:21:31.560 --> 0:21:33.280
<v Speaker 1>have once you've learned them to go do things the

0:21:33.320 --> 0:21:34.239
<v Speaker 1>way you've learned is right.

0:21:34.480 --> 0:21:36.520
<v Speaker 3>That is one way that Denise did that right with

0:21:36.640 --> 0:21:38.679
<v Speaker 3>having her job and holding on to her job. But

0:21:38.760 --> 0:21:40.480
<v Speaker 3>what I like about how she did this because a

0:21:40.520 --> 0:21:42.720
<v Speaker 3>lot of entrepreneurs do that. But what she did was

0:21:42.760 --> 0:21:45.720
<v Speaker 3>she was very consistent about it. She was diligent. Though

0:21:45.800 --> 0:21:50.200
<v Speaker 3>she had the security of her existing position, she still

0:21:50.240 --> 0:21:52.920
<v Speaker 3>was running this company and growing it steadily and learning

0:21:52.920 --> 0:21:55.960
<v Speaker 3>her market and taking major steps. So I like that, Yes,

0:21:56.040 --> 0:21:58.600
<v Speaker 3>she had reduced the risk, but she didn't do what

0:21:58.680 --> 0:22:01.000
<v Speaker 3>a lot of other people do and they're just starting out,

0:22:01.000 --> 0:22:03.879
<v Speaker 3>which is not take it as seriously as they should

0:22:03.880 --> 0:22:06.360
<v Speaker 3>as if they didn't have the security of the position,

0:22:06.440 --> 0:22:06.920
<v Speaker 3>you know what I mean.

0:22:07.000 --> 0:22:09.840
<v Speaker 1>Yeah, she took it seriously, there's no question. And look, ultimately,

0:22:09.920 --> 0:22:12.280
<v Speaker 1>if it's not your passion, you shouldn't quit your job

0:22:12.320 --> 0:22:14.240
<v Speaker 1>and do it because it's going to be all consuming

0:22:14.280 --> 0:22:16.120
<v Speaker 1>and it's going to be your life. So I think

0:22:16.119 --> 0:22:18.119
<v Speaker 1>the other place that her patient's paid off was in

0:22:18.160 --> 0:22:19.920
<v Speaker 1>her fundraising. You know, we've talked to a lot of

0:22:19.960 --> 0:22:22.560
<v Speaker 1>different companies about how they raise money, and some go

0:22:22.960 --> 0:22:25.239
<v Speaker 1>sort of alternative routes, some friends and families, some use

0:22:25.240 --> 0:22:28.080
<v Speaker 1>their own money, some use partners money. She went more

0:22:28.160 --> 0:22:31.439
<v Speaker 1>of a sort of classic outside investor route, and like

0:22:31.480 --> 0:22:34.200
<v Speaker 1>many people who go that route, it wasn't easy, right,

0:22:34.280 --> 0:22:37.199
<v Speaker 1>So she describes pitching twenty thirty, forty fifty times and

0:22:37.200 --> 0:22:39.919
<v Speaker 1>getting a whole bunch of no's before she gets to

0:22:40.000 --> 0:22:42.399
<v Speaker 1>a yes. I always tell people, if you're fundraising and

0:22:42.440 --> 0:22:44.679
<v Speaker 1>you're not walking out with feedback, you're not getting smarter

0:22:44.960 --> 0:22:46.440
<v Speaker 1>and your next pitch is not going to be any

0:22:46.440 --> 0:22:48.800
<v Speaker 1>better than your current pitch. And there's a few things

0:22:48.800 --> 0:22:50.560
<v Speaker 1>she tipped us off for that, I think are good

0:22:50.560 --> 0:22:52.680
<v Speaker 1>things to keep in mind always, you know, number one,

0:22:52.760 --> 0:22:54.719
<v Speaker 1>always be able to articulate how you're going to use

0:22:54.720 --> 0:22:56.880
<v Speaker 1>the money. You know, saying I need to raise money

0:22:56.880 --> 0:23:00.359
<v Speaker 1>for this company without being able to specifically articulate how

0:23:00.480 --> 0:23:02.000
<v Speaker 1>you're going to use that money and what kind of

0:23:02.040 --> 0:23:04.359
<v Speaker 1>return you expect probably isn't gonna win very many fans.

0:23:04.480 --> 0:23:07.400
<v Speaker 3>Yeah, she definitely was taking a long term approach, not

0:23:07.520 --> 0:23:10.600
<v Speaker 3>just seeking money right from wherever she could get it.

0:23:10.960 --> 0:23:13.879
<v Speaker 3>She was very intentional, and I liked that she was

0:23:13.960 --> 0:23:17.000
<v Speaker 3>very committed to her education, and she recognized that she

0:23:17.040 --> 0:23:20.240
<v Speaker 3>was entering an arena that was very unusual or different

0:23:20.240 --> 0:23:22.840
<v Speaker 3>for her, and she stressed that she had to learn

0:23:23.200 --> 0:23:26.040
<v Speaker 3>what to say, she had to learn the language, and

0:23:26.200 --> 0:23:28.920
<v Speaker 3>in addition to being patient, she took that part very

0:23:28.920 --> 0:23:29.760
<v Speaker 3>seriously as well.

0:23:29.880 --> 0:23:31.399
<v Speaker 1>I'm not so sure about that. I think if you

0:23:31.440 --> 0:23:33.240
<v Speaker 1>listened in the early days, she just wanted the money.

0:23:33.280 --> 0:23:34.840
<v Speaker 1>And I can't really blame her for that, because she's

0:23:34.840 --> 0:23:36.760
<v Speaker 1>trying to get going and she's looking for funds, and

0:23:36.800 --> 0:23:38.879
<v Speaker 1>so if you listen to how she talks about it

0:23:38.920 --> 0:23:41.520
<v Speaker 1>at the end, she clearly had a much more evolved

0:23:41.560 --> 0:23:44.520
<v Speaker 1>way of thinking about partnering with someone from a fundraising

0:23:44.520 --> 0:23:46.560
<v Speaker 1>capability than she did in the early days. I think

0:23:46.600 --> 0:23:49.399
<v Speaker 1>she realized that the fundraising process was about finding the

0:23:49.480 --> 0:23:50.600
<v Speaker 1>right long term partner.

0:23:50.640 --> 0:23:52.840
<v Speaker 3>But it worked out well for Denise. I mean, listaid

0:23:52.840 --> 0:23:55.480
<v Speaker 3>there are advantages to the nose. In addition to getting

0:23:55.600 --> 0:23:59.760
<v Speaker 3>substantive feedback from investors on your pitch, there's also the

0:23:59.760 --> 0:24:03.320
<v Speaker 3>men fit of time time to learn more about what

0:24:03.440 --> 0:24:05.800
<v Speaker 3>to do differently and not just what to change in

0:24:05.840 --> 0:24:09.240
<v Speaker 3>your pitch. So the nos were really a great opportunity

0:24:09.280 --> 0:24:10.000
<v Speaker 3>for her to learn.

0:24:10.440 --> 0:24:12.960
<v Speaker 1>Right. If you're not learning from your nose, then you're

0:24:13.000 --> 0:24:15.640
<v Speaker 1>not growing, Tanya, I want to share one last piece

0:24:15.680 --> 0:24:18.520
<v Speaker 1>of the interview with you. Denise had some advice for

0:24:18.600 --> 0:24:21.240
<v Speaker 1>current and aspiring small business owners that I really think

0:24:21.240 --> 0:24:21.880
<v Speaker 1>will resonate.

0:24:22.080 --> 0:24:24.919
<v Speaker 3>Well, let's hear it. It's okay to start small.

0:24:25.160 --> 0:24:28.600
<v Speaker 2>I remember being at those local demos and trade shows

0:24:28.640 --> 0:24:30.919
<v Speaker 2>and I would have a five dollars tablecloth and a

0:24:30.960 --> 0:24:33.440
<v Speaker 2>stand that I made at home myself, and I would

0:24:33.440 --> 0:24:36.640
<v Speaker 2>be embarrassed. I would see other businesses that were much larger,

0:24:36.680 --> 0:24:40.240
<v Speaker 2>with much flashier signs, and think something's wrong with my business.

0:24:40.520 --> 0:24:42.560
<v Speaker 2>I felt the same when we weren't able to hire

0:24:42.600 --> 0:24:46.280
<v Speaker 2>early on. But I think it was that financial scarcity

0:24:46.320 --> 0:24:49.000
<v Speaker 2>that made me have to be much more scrappy. It

0:24:49.080 --> 0:24:52.000
<v Speaker 2>made me a stronger and better business person. And at

0:24:52.000 --> 0:24:53.840
<v Speaker 2>the time I kind of wished it away, but I

0:24:53.880 --> 0:24:56.439
<v Speaker 2>think the starting small was really important for my business.

0:24:56.920 --> 0:24:58.879
<v Speaker 1>Okay, and I have to ask, what is your daughter's

0:24:58.920 --> 0:24:59.920
<v Speaker 1>favorite part take prop.

0:25:00.960 --> 0:25:04.240
<v Speaker 2>She takes the crunchy chocolate chip snack packs for lunch

0:25:04.440 --> 0:25:06.919
<v Speaker 2>every single day and I try to switch it up

0:25:06.960 --> 0:25:08.840
<v Speaker 2>for her sometimes and she's like, no, I want the

0:25:08.840 --> 0:25:10.040
<v Speaker 2>cookies every day.

0:25:11.280 --> 0:25:11.520
<v Speaker 1>Ben.

0:25:11.600 --> 0:25:14.280
<v Speaker 3>I think her daughter is onto something. These crunchy chocolate

0:25:14.359 --> 0:25:16.359
<v Speaker 3>chip snack packs are delicious.

0:25:16.520 --> 0:25:17.640
<v Speaker 1>I can go for some right now.

0:25:17.880 --> 0:25:21.000
<v Speaker 3>And there's ice cream too. Where's ice cream? Where's ice cream?

0:25:21.080 --> 0:25:22.120
<v Speaker 3>I want to try it.

0:25:22.119 --> 0:25:24.720
<v Speaker 1>It sounds like Partake Foods has a really exciting road

0:25:24.720 --> 0:25:26.160
<v Speaker 1>ahead of it, but a lot more to do.

0:25:26.400 --> 0:25:29.240
<v Speaker 3>Yes, so much more to do, so many more snacks

0:25:29.280 --> 0:25:31.320
<v Speaker 3>for Vivi to try and the rest of us too.

0:25:32.720 --> 0:25:35.359
<v Speaker 1>Thanks so much for listening to The Unshakables. If you

0:25:35.520 --> 0:25:38.360
<v Speaker 1>like this episode, please rate and review it. It'll help

0:25:38.400 --> 0:25:42.880
<v Speaker 1>our show find more listeners. On the next episode, after

0:25:42.920 --> 0:25:45.639
<v Speaker 1>a near death experience left him with no one to trust.

0:25:46.000 --> 0:25:50.040
<v Speaker 1>Real estate investor and developer Fukwan Bilal pivoted to reinvent

0:25:50.080 --> 0:25:53.960
<v Speaker 1>his business and his mindset. I'm Ben Walter and this

0:25:54.040 --> 0:25:57.120
<v Speaker 1>is the Unshakables from Chase for Business and Ruby Studio

0:25:57.240 --> 0:25:58.520
<v Speaker 1>from iHeartMedia.

0:25:58.640 --> 0:26:02.240
<v Speaker 2>The Unshakables is a pretty action of Ruby Studio from iHeartMedia.

0:26:02.440 --> 0:26:02.919
<v Speaker 3>And we'll have