Mastering Growth & Profitability in CPG: Sarah Goodman's Strategic Insights from Chiwis

Her CEO Journey™: The Business Finance Podcast for Mission-Driven Women Entrepreneurs

Key Takeaways

• The Importance of Financial Planning: While Sarah enjoys branding and marketing, her experience highlights how vital financial planning is to long-term success. Early lessons from fundraising helped her keep profitability front and center as she built Chiwis.
• Understanding the CPG Landscape: Entering the CPG industry comes with its own set of challenges. Sarah delves into the importance of knowing your margins, pricing strategies, and building strong relationships with key players like brokers and retailers.
• Strategic Decision-Making for Growth: Data-driven choices are at the heart of Chiwis' success. Even when a product like the mango chip line was popular, Sarah discontinued it because of slim margins—a clear example of making tough calls for long-term gain.
• Building a Scalable Brand with Purpose: Building a scalable brand takes thoughtful planning. For Sarah, partnering with the right co-manufacturers and leaning on industry expertise has been instrumental in positioning Chiwis for sustained growth.
• Balancing Growth & Profitability: Goodman’s strategy focuses on identifying the optimal balance between rapid growth and sustained profitability Working with large retailers like Costco allowed her to achieve both goals.
• Managing Cash Flow: Understanding cash flow is critical in the CPG industry, especially when working with large retailers with extended payment cycles. Sarah shares strategies for managing these gaps and building strong relationships with vendors.
• Shifting Funding Priorities: As investors shift their focus towards profitability, Sarah advises founders to come prepared. Know your numbers, track your costs, and be ready to present a compelling story around your product’s value and potential..

Episode Highlights

• [3:50] Sarah discusses her early career in the music industry and her transition to the nutrition space, ultimately leading to the creation of Chiwis.
• [7:10] Challenges faced in the early stages of Chiwis, including R&D costs and achieving profitability.
• [11:30] Importance of margins over markup and how collaborating with sales brokers and distributors is crucial for scaling a CPG business.
• [19:30] Finding a co-manufacturer during the pandemic and the complexities of scaling production while maintaining product quality.
• [23:10] She explains her decision to partner with co-manufacturers rather than own a production facility, allowing her to focus on brand building.
• [27:30] Growth strategy and Chiwis vision, including potential acquisition opportunities.
• [30:40] Insights on managing cash flow, margins, and negotiations with partners in the CPG industry.
• [35:50] Sarah reflects on the changing investor landscape and the importance of being prepared with a pitch deck when seeking funding.

Resources

• Chiwis website: chiwis.co
• Follow Sarah Goodman on LinkedIn
• Connect with Christina Sjahli on LinkedIn

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