What does it take to scale your business from $5 million to $50 million in annual sales?
Jeremy Sherk and Kevin Pasco are trying to answer that very same question. In 2013, they partnered up to start a nutritional supplement business that eventually became Nested Naturals. Since its launch, the company has experienced tremendous growth. Nested Naturals has a team of eight full-time employees and is currently doing $5 million in annual sales.
Despite the company’s impressive success story, Jeremy and Kevin aren’t quite ready to rest on their laurels. They made an appearance on the Freedom Fast Lane podcast last month. On the show, they revealed their plans to grow Nested Naturals into a $50 million brand.
Here is an overview of six things they are doing to turn their audacious goal into reality.
Refined the Company’s “Why”
Nested Naturals was founded as a healthier alternative to nutritional supplements. As the business took off Jeremy and Kevin saw the need to refine the company’s branding and overall mission. Their thinking was that a clearer “Why” would result in a clearer strategy to reach $50 million in sales.
Along the way, the company had to change its name due to legal complications. To their surprise, customers did not give them much backlash for the name change. Jeremy and Kevin believe that could have been a result of them being transparent about the entire process. Looking in retrospect, they now view the legal issue a blessing. They believe that the new name, Nested Naturals, better represents the brand that they are building.
Continuous Reinvestment of Earnings
Jeremy and Kevin understand that they will oftentimes need to delay instant gratification in order to scale your business for outsized growth. They have sacrificed dividend payouts and both decided to take modest salaries.
Instead of reaping the rewards of their early success, Jeremy and Kevin prefer to reinvest their profits for further growth. Money that they leave within the business is used for research and development, additional hiring and marketing. Their discipline will allow Nested Naturals to reach the $50 million goal a lot faster. It will also ultimately put them in a position to take sizable drawings from the business in the future.
Investing in People
Jeremy and Kevin do not view human resources as an expense, but rather an investment. It is probably impossible to build a $50 million business organization without having employees. That’s exactly why Nested Naturals has been aggressively growing their team. Thanks to their employees, Jeremy and Kevin spend most of their time working on strategic projects instead of administrative tasks.
Jeremy and Kevin are very concerned about creating an enjoyable environment for their workers. For example, their employees aren’t required to put in a set amount of hours in the office. The corporate culture they are trying to build is centered around results. They also pay their staff competitively.
Fortunately, Jeremy and Kevin have not experienced any major hiring failures to date. Their advice to other employers would be to hire people whose principles match those of the company.
Operating Out of A Corporate Office
Jeremy and Kevin run Nested Naturals as if it were already the large company they envision it to become. Up until recently, the partners were running the business virtually. This all changed when they agreed that more structure was needed in order to grow the business. They ended up leasing office space in Vancouver. The new space allowed them to build their team. It might have even subconsciously changed their mindset from looking at themselves as just a“startup” to a million dollar organization.
Leveraging A Partnership
Achieving $5 million in annual sales was a lot easier for Jeremy and Kevin because of their strong partnership. It is actually because of their partnership why they both see their goal of $50 million a year as doable. On the podcast, they encouraged business owners who are looking to scale to seek partners that can complement their skills and expertise.
In the case of Nested Naturals, Kevin is extremely great at focusing on and navigating through the overall big picture. On the other hand, Jeremy has a knack at paying attention to the day-to-day details of the business. Their partnership allows them to bounce ideas off of each other and supplement each other’s weaknesses.
Continuous Product Launches
Continuously developing and releasing new products was another strategy that contributed to Nested Natural’s rapid growth. Jeremy and Kevin will continue to spend a lot of their time on product development. As they explained on the podcast it’s much easier for them to reach $50 million in sales with a wide range of products. That way they can serve their existing customers with additional items and reach new customers who may not be attracted to their current line of products.
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