Subscription Box Basics

Behind the Scenes of Buying a Sub Box Business

January 30, 2023 Episode 151
Subscription Box Basics
Behind the Scenes of Buying a Sub Box Business
Show Notes Transcript

Julie has told you all about selling her subscription box, Sparkle Hustle Grow, in late summer 2022. Now that it's been six months, we thought you might like to hear from Carol, the new Chief Sparkler at Sparkle Hustle Grow. She tells Julie why she and her husband decided to buy an established business, what it was like learning the ropes and what's coming down the pipeline for SHG subscribers.

Carol invites you to try Sparkle Hustle Grow for 50% off your first month! Just use the special code JULIESUBBOX at SparkleHustleGrow.com.

Empowered women empower women - please subscribe, rate and review Subscription Box Basics podcast is your favorite podcast player. 

Support the Show.

Hey everybody. Welcome back to Subscription Box Basics. Today is a very, very special episode. I have Carol Gavani. She is the new co-owner of Sparkle Hustle Grow. We figured it's been six months since I sold the business to Carol and her husband Amer. And why not get on a podcast together and just chit chat about it? You guys heard my story about selling? Now you get to hear the other side of the story. So Carol, welcome. I'm so happy to have you here. I am so, so pumped to be here. I cannot wait to dive into the whole thing with you. Yes. Okay. So I feel like this might be a little bit of a gush fest because guys, when we found Carol and her husband, it felt like we found our dream buyers. So we're gonna really tell the story of that. But first, Carol, will you please introduce yourself? Cuz some, a lot of people will be meeting you for the first time. Yes, I certainly will. So, Carol Gavani here. I am co-owner of Sparkle Hustle Grow, along with my husband. He's a little bit more a behind the scenes kind of guy,. I have a background in corporate advertising before this, so over a decade's worth. We ran a small business together with my husband right before we got into Sparkle Hustle, grow. I've got two kids. They're growing so fast now, ages 10 and five, and I live just outside of Seattle. Very good. Okay, so why don't we just start with, tell us the story of why you wanted a business, because most of the people that listen to this podcast or that I've worked with are starting a subscription box business from scratch. But you bought one that was already well established. So why was it that you wanted to buy a business to begin with? Yeah, totally. So Amer and I had started our business before this. Mm-hmm. and that business was an intentional jewelry business. It was our first business. So we kind of look at, looked at it as like a starter business, so to speak. It's the one like where we made a whole bunch of mistakes. We tried all of the things, and I think. It's so interesting. So we both don't have like an entrepreneurial background. You know, both of us come from the corporate side, which I feel like a lot of people do. A lot of people that I meet mm-hmm. who are starting businesses, have that background. So one thing was for certain, we knew we didn't wanna go back to that. Like, we have caught the bug and the bug is here to stay. Right. Yes. So that was kind of the first, but we also knew in running Asha Blooms, like that season was, was ending for us. So I made the jewelry. It was all good. I felt a little drained. By just kind of that, so a little bit of the burnout that I think a lot of people, you know, when they run their own thing, they encounter. And it was time, it was time for us to see what else was out there. I have to be honest, like I didn't even think about buying something until we were really in it. I didn't really fully know that this is something that's available to any individual. Cuz you know, in your head you're just like, okay, it's something big corporations do. Like the mega, the mega millions, mega billions, whatever. It's not really accessible to kind of the the normal, the, the layperson. Yeah. But somehow we thought of, of this like, what if we went out and we could see what else is out there. Sure. And let's just see, let's just peruse around and let's see. And then this kind of fell into our laps almost and we went down a little bit of a rabbit hole. And lo and behold, now we are, we are the owners. It is so wild to think about because as you were talking with your husband about, I think we're ready for our next season. I was having those same conversations on the other side of the country. We did not know each other before this transaction, before the sale and acquisition of the business. And I think that that's important to talk about just briefly, because we do go through seasons of life, what my life as an entrepreneur looked like when my daughter was in kindergarten. Looks very different now than it does when she's in middle school. It's impacted by every angle. And so it was just interesting that you and I were kind of going on these parallel routes where we're finalizing a season and ready for the next. Neither of us knew what that next season was though. So how did you begin that search? Like did you just go to biz buy sell.com, which is the, is an online marketplace for buying and selling business? Yes. Yes. Totally., that's actually what we did. Cuz it's like, where do you even go? Where do you, yes. Where do you start? I don't think many people know, you know where to start. Mm-hmm.. So you just go to the internet and you're just businesses for sale, right? Mm-hmm., like you just Google a phrase. And then I think one of the first few listings that came up was this website that you just mentioned, which, mm. For people out there is honestly, it's, it's a, it's an aggregator of listings. Yeah. So if you wanna sell a business or buy a business, most likely that website will capture that listing. Yeah. And we just kind of went through it here and there Again, we weren't really serious cuz we're still running Asha Blooms, you know, by this time we are, we have gotten through holiday, which for us is a huge. Very chaotic and very busy season. So we've gotten through that. We have a little bit of a lull of a break, and we're just seeing what's out there, what captures our eye and. There wa there wasn't a lot. You know, it's, it's, it's a mix of brick and mortar online. E-commerce international, you know, you can put the filters on, but there wasn't a whole bunch until we saw this listing, which I did not know was Sparkle Hustle grow at the beginning? Cuz all of everything is stripped. It's just the bare bones basic right. Yes. So did you have angling? Like did you think, oh, I wonder if this is Sparkle Hustle grow? I did. I did. So I saw this listing and it said subscription box for female entrepreneurs, and I have to say, you know, r. I, I'm sitting down and I physically like, leaned in. Like I, I leaned in and I was like, what is this? And I went, like, closer to my laptop and I was like, I wonder if it's that one business that I love from afar, right? Because we did not know each other, and I, I wasn't actually , a customer. And so I was just thinking, is this the business that I know of from afar? Because I had known some other entrepreneurial friends who were subscribers. Yeah. I'm gonna do a little bit of digging, digging around. And when you connect to inquire about a business, , most people aren't connecting to you. Mm-hmm., right? Cause you used an intermediary, so, And I believe you've done maybe a show on that before. Yes. Where, where we talked about Christine from the Magnolia Firm. She was amazing. She was that middle person to help me understand what needed to happen and honestly to vet buyers before she brought them to me. She didn't wanna bring me the tire kickers, she just wanted to bring the people that were truly interested and were a qualified applicant to purchase the business. Totally. And so that, that's actually what happened. So our first interaction in this whole thing was not with you, it was with Christina and I think it was with Christina. Couple of times. It was like first , with her team and then it was with her. And I think there was maybe a third with her again before we were looped into you. So it's a process, you know, from, from both angles. But it worked. It actually worked really fast for both of us. So you inquired about the business. You started talking to my intermediary. Was there anything, as you were searching to buy a business, were you drawn to subscription boxes or was this just, it fell in your lap and it happened to be a subscription box that you were interested? Yeah. So more the latter. So for us, we, we knew it had to be something that we were passionate about, that we had a, a genuine interest in . . It could have been anything, right. But we didn't know what that was. And , it just so happened to be a subscription box. Which I love. Right. And we can into that into that in a bit. But yeah, it's not that we were searching for a sub, it just so happened that it was okay. Well, I mean, the recurring revenue part of subscription boxes is such a draw for a business owner. So yeah, I think if I were looking to buy a business, it would definitely be on my mind of what's the revenue potential for this, and to see recurring revenue. I mean, come on, . Absolutely. I'm with you. I'm with you girl.. Okay. So we did have some mutual friends, which was kind of nice because after the first time we chatted, of course I like looked you up on Facebook and LinkedIn and all the things. And seeing the mutual friends kind of gave me that little bit of confidence too that okay, she's already in this entrepreneur space. One of our colleagues that we both had, We didn't know each other, but we had this mutual connection with the product boss and they're great coaches as well, and highly recommend them if you're creating your own product. So, all right, let's talk more about running a subscription box because now again, we're six months in. I have had my hands off the box for about six months. That first month I was pretty hands on with you guys cuz it was like drinking water out of a fire hose, learning the business in the back. Curating boxes. I helped you a lot with that first month, but I noticed after that, after, you know, 30 days, you were pretty self-sufficient. You know, you only tapped into my knowledge base here and there, and I was really impressed. Oh my goodness. Well, thank you . Yeah, so we're six months in, so I would love to share everything. I love. I love running the behind the scenes. I'd love to share all of those components with you. Okay. Let's talk. Let's talk, let's get to the tea. So I love, it's like going shopping every month. That's what I feel. And obviously I'm planning the boxes, you know, months out in advance, but I'm not actually purchasing them because of the, of inventory and just inventory storage. And I'll go into that in a bit. But I love this idea of what is something cool, fun, actually useful that other entrepreneurial women can use in their own businesses? So I love the shopping idea. It's super fun. You know, it's, it's fresh, it's, it's different. It's new kind of, you know, every month. So there's that. The themeing, right? So first obviously I'm creating the themes every month prior and then going shopping for it. But I find the theme so much fun and it kind of is in line with what I was doing before with my other business, which every piece of jewelry actually had a message and a theme that went with the piece. So I feel like that's kind of similar and that's kind of stayed with me. And so that to me really pumps me up. The third piece though, So I feel like I'm actually the avatar for this business. I'm an entrepreneur myself and when I was in my first business, I consumed every piece of everything you could find. Yes. You know, every podcast, every book, what course can I do? What course is free? How much does that course cost? Oh gosh, it's too expensive, but you know, I'm gonna do it anyway, or whatever. And so, cause I had consumed so much of that for years. And now I feel like, and I'm still in it, , because I'm, I'm running this business, I'm an entrepreneur, so it's almost like I'm alongside the customers. Yes. I love thinking about it from the truly the customer point of view and who, what training can they benefit from? What book is really gonna move the needle for them? And That part truly lights me up to no end. It's like the shopping for the stuff is amazing and it's so fun. But what high caliber TR trainer can we bring in that's going to really impact a subscriber's business? Yeah, if you're watching the video guys, like you could just see the passion pouring out as you're talking about it. As I said to you privately, I was like, I'm feeling such a proud mama bear. Like it's in such good hands and you can tell from the other side when that you're putting a lot of thought into the curation of the themes, the guest experts, I mean, you've got some big guest experts coming up. We're gonna talk about that in a little bit. Before we dive into that, I wanna tell everyone, like, you did not run a subscription box prior to this, you know, I had created SOPs, which are standard operating procedures and kind of put together this playbook. You guys came out to our home warehouse so that you could learn hands-on, and then you're figuring out the rest on your own. Was there anything that really like surprised you about running a subscription box? Yes., and that that was, so it's like, you know, it's one of those things where it's like you can get educated, someone can fill you in, but you really won't know till you are in it. Mm-hmm., which I feel like could be said of on any scenario for anyone. What really surprised me was just the inventory, like the, the massive amounts of inventory and the space. So my husband's got a, a home office, I have a home office. We also have a home warehouse, a third of our garage. Mm-hmm. is now dedicated to all things sparkle, hustle grow, which is amazing, but you really have to have a system in place. For example, like when I was running Asha Blooms, if, if I, and I'm just gonna make up a number here, but if we were to send out 500 necklaces a month, the. The square footage of how much that would actually take is super small compared to the square footage of what a subscription box really needs. Because in a typical box, you've got five-ish products, give or take. Mm-hmm., right? Full size products. So it's, it's not just like the box is stacked on top of each other. It's like the box, the tech gadget, everything comes in its own box and they are often. Boxes. Wrapped in boxes. Wrapped in boxes. So when they come to you, it comes and nothing's broken, nothing's rip, nothing. You know the integrity of that piece is still there. So I think just the physical piece and the figuring out of that piece, the process mm-hmm. was was a big learning for us because it was so different from what we had been used to. That makes total sense. And the fact that when you purchased the business, you did invest in a significant amount of inventory that I had on hand already, so, yeah. Yeah. You know, when we first, when you first took over the business, we shipped out, what was it, like two pallets? I don't remember. It was so much stuff, but it, it ha it allowed you to be equipped with shop items to, to immediately start selling things. But that was probably a shock when that showed. It sure was. That was, and that was another thing. So it was like, where it's residential cuz we're running everything out of our home, our home office. And the questions that were asked were very different from before. I had to quickly figure out what is a lift gate like, you know, it's like what I, I don't understand what that means. So like, because the thing, the things are coming and they're so huge. They're massive. The truck that's coming on needs to have a gate where it can actually come down and then it can be rolled into the garage. So all of all of those kind of logistical things were, were surprising, but we got it. Like, you can figure it out, you know. You do. That's where there's a will. There's a way. Totally. And I think just talking about lift gates, if you guys haven't heard about a lift gate, think about if a very large shipment is coming to you on a truck. I'm not talking about like your regular US Postal Service, little truck or van that shows up. Sometimes these larger shipments are going to be packed on pallets or a very large boxes. And in order to move those heavy packages from said truck to your warehouse space, You are either going to have to break it down, which we've done that in the past, where you've, we've had to work with the truck driver, break it down so that we can move it or have a lift gate, a lift gate. Think about it as like a little elevator at the back of the truck to lower it down, and then you can move it. And even, even then, Sometimes we've had pallets just dropped in our driveway before, and it's like, okay, now what? So some those were moments where maybe we had to break it down. I know a lot of other box owners that deal with that. They have some sort of equipment to help move that. Mm-hmm.. And so it just depends on what size packaging you're receiving, but. We gotta tell this story. So recently you experienced something for the first time that something didn't fit in the box. Oh my gosh, yes. For please tell that story because people are gonna resonate with it. Oh my goodness. Yes. So I have everything, you know mapped out to a T because I get samples and proofs of every single product that's gonna go in the box just to make sure it's gonna fit. The thing is gonna close, so we are good to go. Well, we had a couple things happen. First of all, we had massive delays here in the area, so that impacted us because you. In theory, if something arrives one or two months beforehand and it's a wrong size than what I had initially signed off on, I could go back and say, Hey, let's swap this out. So I didn't have time for that. Okay. What were the delays? Was it weather related or weather related? Yeah. We had huge, huge ice storms here in Seattle. And so , I don't know if if anyone saw any videos on social media, but like cars that were parked on Little Hills were just, they were slid. Parked cars were sliding. Yes. Everything's frozen over, and so it was just, it was just a big mess. And so obviously no large trucks could get by and actually come to us because mm-hmm. First there was snow, then there was ice, and it was just, everything was delayed. It was just, oh my, I, but you know what's so funny is I knew it was gonna work out. I'm like, we are gonna make it work even if we have to meet the truck. Yeah. Which is what happened. We had to meet one of the trucks down at our hill at like a Home Depot. To get the product. We've done that Oh yeah. A hundred times. Yeah. Yeah. We've had, we have a tractor supply that has a massive parking lot and even like back areas where the big trucks go through. So we've, met them there before. I know that feeling. You pack up your car, right? Yeah. So you totally get it. Yes. So, we had the delay, okay, fine. So we're expecting. When we finally get the product in-house, I open up the box and I'm like, oh my Lord, this is, this is quite bigger than what I had thought. Okay. Cuz it wasn't what I had really signed off on. So we, oh no. I put all of the pieces into the box and lo and behold, it just doesn't fit. Nothing. Like all of the things aren't fitting this is might be a blessing in disguise. One of the products that we had, it was a tray. I love this tray. This tray is like your desk organizer tray, and it can be like a catchall for anything. It's a good size. It's, it's all good. And it has the words she builds embossed on it. So I love it. It looks cool. I saw the video. I love the concept. Oh, love it, love it. So this tray has snaps on, on fore sides. So it's like a, is it like a faux leather or something like that?. You got it. Yeah. Malleable. Okay. Malleable. You can do, you know, you can manipulate it however you need. And so what we did before is when we thought all of these things were gonna fit in the box we had actually snapped the tray is not fitting, the tray is not fitting. Cuz one of the, the pieces that was delayed was just a different dimension, a different size. And so we had to unsnap hundreds of these trays, roll them. Thankfully they rolled, they were rollable. Right. And, and find, figure out a way to make it work. We, we had to really think on the fly because I didn't want any of these things to be delayed, nor did I want to honestly spend extra money on shipping. Mm-hmm., because I thought or reprint packing list. Exactly, exactly. No. And we've been in that situation before where instead of reprinting the packaging list there was, I've run by two options where you just print out a little card and put it in there. There's been a substitution product. You know, you just throw that card in there or you could get stickers, like labels and cover it up. But that's a lot of work. You know, I'm glad you were able to make it work, and I loved how you did a video in the subscriber group to explain how to use the product, but also what happened, behind the scenes, because I think that transparency goes so far with subscribers to see that it's like a real person behind the scenes to see how much thought and action has to happen behind the scenes to make this product so amazing. Yeah. Yeah. You know, I wanted the subscribers to know, like, I'm right there with you. Yes. Things happen as a small business owner, and you just, you have to, you do, you have to figure out on the fly. And I love Marie Forleo's book. Everything is Figureoutable. Mm-hmm., that's one of my mantras in life. So that's kind of what I instituted here. It's like, you know what? Everything's figureoutable. After I had a moment, I, I, I definitely had a moment where I'm like, have your. Yes. Oh my gosh. I was disappointed. I was angry. There may have been a couple tears behind the scenes, you know? Sure. But it's like, figure it out. Yeah. You figure it out after it kind of gets outta your body and it's, I, I really wanted to share that with the subscribers so they knew we're all in this together. Yeah. I love that. Well, and one little piece of advice here, if you're listening and you're like, okay, I never want that to happen to me. One, have a lot of communication with your vendors, but sometimes things like that happen if you can afford it. Like if you can make it work with the budget, always have one to two small items on backup that are non-specific for any theme that could be just like thrown in there at any given moment. I've been in those situations. Something was delayed so long that it just wasn't gonna make it in time. Even if I tried delaying the shipping date for a couple days, it wasn't gonna work. But having that backup item or two on hand can really reduce the stress level. And one of the places that I get some items like that, it could be literally you could get stuff on Amazon or like Kole imports.com. Those are great places to get inexpensive items that can kind of, I don't wanna call them filler items, but they're almost like those oh no, what am I gonna do? Like, , I need to fill this with something. And I've actually done that and I've not put it on the packing list and when I did my unboxing video, I would say there was a surprise item. Mm-hmm., if you can just spin things sometimes too in that positive kind of point of view, it can really work out in everyone's favor. I totally agree. Absolutely. Such a good piece of advice. So, do you have any advice for someone who might be actually interested in buying a box , a subscription box business like? Yeah. You know, I think. No, no. Kind of the moving pieces of inventory. I think that that was a big thing for us. Mm-hmm. Just know it's gonna be constantly moving with all of the different pieces for whatever your, the subscription boxes. Something to just be mindful of mm-hmm.. And then this piece of advice is just kind of for anyone who runs any business, it's like, yes, know your customer. Yes, no, what pain point you're solving for them. Like it's gotta be more than just a box of stuff. Like what, what is it that you're, that you're aiming to do? And then know where they're hanging out. You know? I think that's super imperative so that you can be talking to them, with them together. So it's like collective. I love that. And knowing where they're hanging out makes it so that you don't get spread thin. Being in all the places, complet. Yeah. Okay. So tell us what's coming down the pipeline for Sparkle Hustle Grow. Oh my gosh, I'm so excited for this stuff. So I'm gonna actually kick it off with who we have for January. We've got Jada Sellner as the guest expert. She has a phenomenal book called She Builds that's in the box right now. She's offering our community. So the subscribers a hot seat, and those winners were just announced today. Everyone got an email. I'm super, super pumped for that. So even if you're not a winner, you know, you come, you get something from it, and there will probably be time for a q and a after. Nice. So she's offering that to our group as well as like a book club and a quarterly planning workshop. So it's, it's like top notch, beyond it's, I'm so pumped right at the beginning of the year. Perfect. Theme for like kicking off the new year. Let's, let's do it. Right, exactly. Let's do it. And we have a quarterly wall planner piece, you know, like the actual product in the box. Okay. So everything just worked, works out. We've got, so we've got her, we've got a phenomenal social media boutique agency owner coming to talk to our group in February. Our theme is all about social media whether it's Instagram, TikTok, what have you. So phenomenal. I cannot wait for that training that. We also have the incredible Amy Porterfield. She is going to do something for our group. I'm so pumped. Her book is coming out. I feel like I don't even have to say anything more. Just Amy Porterfield, you know? So, right. Can I tell you a secret? When I first started my business, she was on my bucket list of Amy Porterfield will be in Sparkle Hustle, grow one day. Right. And throughout those six years that I owned the business, I met her in different moments at one of her events, at an event that we were set up at. And all along the way I was. Nurturing this relationship so she could see that there's value in this box. She could see her colleagues being a part of the box. And it was one year before I sold the business, I made a video pitch. I created this video to show her how she was part of the Sparkle hustle grow journey without even knowing it. And now I extended the invitation for her to. I sent that to her in and her team in the summer of 2021, and I just, you know, touched base throughout the years. I'm not even kidding you. The day after we announced the sale of the business, her team reached out to me unknowingly that I sold the business, but reached out and said, We'd like to invite you on the podcast. Oh my God. It's like when, right. It's like when one door closes, another door opens. Yeah. And that, that timing was so serendipitous because had I been on the podcast right when I pitched it, or shortly after, I'd have been talking about Sparkle Hustle grow, which is fine, but. My new season isn't Sparkle Hustle Grow. My new season is subscription box coaching, right? And so I was, I had the honor of being on her podcast talking about subscription boxes and it was just so wild. So I would wanted to tell you that backstory. And now it is like full circle that she is going to be involved in the box. It really is. It just goes to show you, it's like write your dreams down, right? Like nurture that, visualize it, plant the. Plant it and then sit back and not, I'm not, I'm not saying sit back and wait and like don't do anything. But, you know, it's just, it really goes to show you you're not starting from ground zero. Mm-hmm., like everything is building on top of each other, so Yes. And the grass is greener where you water it. Exactly. Exactly. I love that so much. Yes, yes. Okay, so sorry, we got sidetracked. Oh my gosh. Amy Porterfield. What's after that? Lisa Bik. I'm so pumped. Yes. So Lisa has a book out , radical Confidence. For those of you who don't know, Lisa Biu and her husband co-founded Quest Nutrition, they exited Quest Nutrition for $1 billion. That's with a B. Can you imagine? I cannot, I just got chills. I know. So she's gonna do something just for our group. I cannot wait. I cannot wait for her. We also have Candace Nelson in the lineup. She's founder of Sprinkles and more. I have seen some love her, her out in the media. Yes. I cannot wait for her her training for our group and for her book, of course. And then we've also got Rachel Luna who's going to round out. The first six months of this year, of 2023. For those who don't know, Rachel Luna host a podcast called Permission to Offend. It is phenomenal. I love everything that she stands for. She's got a book coming out and she's gonna do something phenomenal for our group as well. Oh my gosh, I'm so excited. I had the honor of meeting her actually at an Amy Porterfield event. Oh. And she was so lovely. I was having a vulnerable moment at the event, and she was sitting next to me and she was just so attentive and she was going through a hard time herself and. Just that support you can feel from someone who you just met was amazing. So I just can't imagine this level of support that she's gonna provide in the Sparkle Hustle Grow Group. This is all so very exciting. I'm super impressed by the high caliber expert level, like Olympic level entrepreneurs here that you'll be featuring. So tell everybody how they can get involved in Sparkle Hustle, grow as part of their entrepreneurial. Yeah, absolutely. Absolutely. I would say go run, run to your computer, run to your phone, sign up because we have so many great nuggets for you, as we support you in whatever stage of business you're in. And we're for both product and service based businesses. It's not just one. But we've got a special deal for your listeners. Can get their first month for 50% off of a subscription when they sign up. And welcome to use Code Julie sub box, all one word to get 50% off their first month. Thank you so much. We will put that in the show notes and the link to subscribe is sparkle hustle grow.com. And that's the same handle too on all the social medias. Right? Exactly. Awesome. Well, this has been so much fun catching up with you and just like talking about what it was like from your end, because I've done a couple episodes of what it was like selling, so it was so interesting to hear from you about what it was like to buy, what it was like to put things together and some of the challenges and the fun stuff. Yeah. I loved this so much. It was perfect to hit us right at six. Well, I am so proud of you and what you've done with Sparkle Hustle Grow. I'm just gonna say it publicly. Oh. So thank you for taking care of my baby. Oh my gosh, of course. I am so honored. Thank you. Thanks Carol. And guys, go check it out. Sparkle hustle grow.com. I know you've heard about the box in the past, but Carol and her team, her husband, have really brought new life to the business. Thanks for listening today. Thanks, Carol for joining me, and we'll see you in the next episode. Bye bye.

Podcasts we love