Sarah Goodman of Chiwis On Five Things You Need To Create A Highly Successful Startup
An Interview With Doug Noll
Funding — If you want to grow quickly, you most likely will need funding. Figure out your growth path, and your cash flow. Prepare different scenarios. Don’t just raise money to raise money, understand what you need it for and how it will affect growth, and if you’re raising from outside investors, be able to tell them how they will get their money back. What is your exit plan?
Startups have such a glamorous reputation. Companies like Facebook, Instagram, Youtube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles. Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup? In this series, called “Five Things You Need To Create A Highly Successful Startup” we are talking to experienced and successful founders and business leaders who can share stories from their experiences about what it takes to create a highly successful startup. As a part of this series, we had the pleasure of interviewing Sarah Goodman.
While the CPG industry is full of innovation, the fruit category has been at a crawl when it comes to new products. Sarah, who previously was the CEO at a consumer health technology startup, left her career to become a solopreneur. With her passion for nutritious snacks as an RD, she launched Chiwis in 2020. As a solopreneur, Sarah knew she had one chance to make an impression, so she sought to fully grasp the nuances of the industry before diving in.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
As the CEO at VitalSines, a consumer health technology start-up, I was itching for a change after building and running the business for seven years. Being a serial entrepreneur, I’m always on the lookout for new business ventures. I had been making kiwi chips at home and with the enthusiastic response to my kiwi chips from my friends and family, I sensed a potential business opportunity in the consumer packaged goods space.
What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?
As a registered nutritionist with a sweet tooth, I was always trying to make snacks that my non-health oriented friends and family would like, and that I actually enjoyed eating. I like intense flavoured snacks and knew the nutritional value of the kiwi (especially the skin!). I started out making kiwi chips in my dehydrator at home and when bringing them on outdoor adventures or sharing with friends, the consistent response from friends and family was, “These are so different from chewy dried fruit, where can I buy them?” In 2020, I decided to pursue the concept full time and launched Chiwis in early 2021. Leveraging the growth mindset I had honed over seven years in the tech space, I jumped into the CPG business, an industry that typically moves at a slower pace.
Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?
I was a semi-finalist for The Forum’s Pitch for the Purse for the tech company I co-founded and led for seven years before starting Chiwis. Tara Bosch, the founder of Smart Sweets, a previous winner of the pitch, was presenting her story andI was very inspired at the time. At that point I wasn’t planning on starting a CPG company or a company in the food space at all, but her story and her tremendous growth planted a seed in my mind. Tara and the Smart Sweets team have been an inspiration for me since before Chiwis was born!
What do you think makes your company stand out? Can you share a story?
By using upcycled fruit, we are saving imperfect fruit that won’t sell in grocery stores which would end up in the landfill. We use the entire fruit (and only the fruit), including the peel, core, and rind. We source our fruits directly from farmers and are happy to take their fruits that may not be perfect on the outside, but still taste amazing and pack nutritional value. We also minimize our own waste by donating any additional fruit scraps to local farmers to feed animals.
How have you used your success to bring goodness to the world?
In less than three years, Chiwis has gone from being available on 0 to over 1000 store shelves, and Whole Foods Canada was Chiwis’ first customer. We’ve experienced an incredible 400% growth year over year, with projections to surpass that number by the end of 2023. Since Chiwis hit the store shelves, I’ve expanded our product line from two to eight flavors. I’ve also built a fantastic team of five individuals to help the company reach its ambitious goals. Chiwis proudly holds the certification as a Certified Women-Owned business, with over 70% of female investors on board. As Chiwis evolves from a scrappy startup to a household name across North America, mentorship opportunities for women have been crucial to my vision. My leadership, enthusiasm, and trust in my team are sure to see Chiwis continue to grow and succeed.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
I think being independent is a big part of things. Being a founder can be a lonely experience, and you have to be pretty comfortable being alone and figuring things out on your own, at least at first, to make it work.
Being open-minded. After starting Chiwis I was determined to create a board of advisors who had been in my shoes before, I think taking feedback, both negative and positive, from others is a huge asset in creating a business that is poised for success in the future.
Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?
I was told early on that a Canadian brand shouldn’t enter into the US market until they have $10 Million dollars in sales revenue. We launched into Costco California and Hawaii this year and it was a great move for us. The legitimacy of being in Costco has allowed us to pitch confidently to other retailers in California and have a great launch story.
Can you tell us a story about the hard times that you faced when you first started your journey?
When I launched Chiwis we were at the beginning stages of the pandemic. We couldn’t rely on activities that new brands often use to increase brand awareness like store sampling, trade shows, and even going into stores to meet managers. I had to rely solely on making the branding of our products as attractive and eye-catching as possible for our target customers to notice us and grab a bag on shelf!
Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?
We have been in business for less than three years, having launched during the challenging times of the COVID-19 pandemic. In that short time, we have secured top-tier placements with brick-and-mortar chains, such as Costco and Whole Foods by being scrappy and having a deep understanding of the retailer’s prerequisites. Costco, for instance, requires a substantial 20% price reduction per gram and mandatory SQF certification for food safety. Additionally, brands need to ensure they have a robust cash flow to meet the specified sales targets per store per week and stay afloat. Brands should also capture buyer interest through distinctive product offerings and compelling branding. Never go in blind to meetings with retailers because first impressions can make or break your chances at securing key partnerships as a startup brand that is making a name for itself.
The journey of an entrepreneur is never easy and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?
As the founder of Chiwis, I took a significant risk by embracing a tech growth mentality and successfully raising over 1 million dollars, with 70% female investors and a certified woman-owned status. Launching during the pandemic, we secured Whole Foods as our first customer through a strong online presence, and by strategically expanding our product line from two to eight SKUs in under three years. Our journey culminated in expanding from Canadian stores to Costco in Southern California and Hawaii, highlighting the power of risk-taking and strategic growth in female entrepreneurship and economic development.
I was a solopreneur for the first couple of years at Chiwis, but I am lucky now to have a wonderful team that gets to share in the good, and bad, of Chiwis. At the end of the day I think it’s very important to ensure we are having fun while building a high-growth company, that we’re learning, and that we realize that business is not the most important things in life. The importance of getting outside, taking time not focusing on the business, has been super important for me. We’re based in Squamish, British Columbia, which is a mecca of outdoor adventure. We spend as much time as we can outside doing things we love!
Let’s imagine that a young founder comes to you and asks for your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?
Often your only choice is to bootstrap. You have to be able to prove product market fit, and some form of traction to be able to raise money, or borrow money. I think taking the time to understand the industry you’re going into, your competition, who your customer is, your voice and brand, are all extremely important. For example, in the grocery industry you have to understand your margin, and be ready to give a percentage of your margin to a distributor, a retailer, and often a broker to be able to have your product on store shelves. Once you have traction you will often be able to fundraise or borrow.
Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need To Create A Highly Successful Startup”? If you can, please share a story or an example for each.
1 . Preparedness — understand your product economics, industry standards for getting into retailers or the customers hands, and who your customer is!
2 . Branding — nail that brand. It’s the first thing people see and it’s more than a logo and colours. It’s your voice, it’s the feel and culture of your business.
3 . Advisors — build a team around you that can be sounding boards when you need guidance. These aren’t easy relationships to build, find people you admire, trust, and share values with, and work to create a relationship with them.
4 . Funding — If you want to grow quickly, you most likely will need funding. Figure out your growth path, and your cash flow. Prepare different scenarios. Don’t just raise money to raise money, understand what you need it for and how it will affect growth, and if you’re raising from outside investors, be able to tell them how they will get their money back. What is your exit plan?
5 . Tenacity — Startup life is not linear, and there will be good days and bad. The ability to bounce back is so important.
What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?
Not doing enough research in the beginning. When I started thinking about starting Chiwis I was still running a tech company. I spent eight months on evenings and weekends learning about the food space. Talking to entrepreneurs, distributors, veterans of the space, to understand how things worked. I took that learning and determined that Chiwis had the potential to be a successful business.
Startup founders often work extremely long hours and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?
The highs and lows are no joke. Make sure you take time to do the things you love and realize that things may not go your way, and be ok with that. I make sure I take time to do the activities I love doing outside of work, and spend time with people who I love who aren’t connected to the brand.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I’m not sure if I’m a person of great influence! I think just being kind to people whenever you can, and realizing that everyone is trying their best.
We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.
I’ve been very lucky to be connected to some amazing people in the food space in the last few years. I think that if I could get the chance to have a private meal with one person, it may be Mark Maron. He’s a comedian and has one of my favorite podcasts, WTF. When I started making Chiwis I was in a commercial kitchen slicing kiwis by hand on a mandolin and drying them into chips for 16 hours/day. I listened to his podcasts for months straight which got me through that time with lots of laughs and learnings. I also would love to sit down with Guy Raz who hosts the ‘How I built this’ podcast, but I’m hoping I get to talk to him once Chiwis is acquired for a huge exit (fingers crossed)!!
How can our readers further follow your work online?
Chiwis 100% natural upcycled fruit chip line are available online at www.chiwis.co, and in retailers across Canada, and will soon be at major retailers on the West Coast of the USA. You can find our 100% upcycled kiwi chips at all Costco Southern California and Hawaii locations! You can also follow along on our social media at www.instagram.com/chiwis_snacks/
This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!
About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.
