The Power Up ⎯ SN.04/EP.04
From Bootstrapped To Venture-Backed,
How Kushae Did It
Women’s health is a difficult topic to approach, but not for Kushae. Kimba Williams and Dr. Barb OB/GYN have made it approachable, fun, and even sexy. Kushae is a mission-focused business to empower women and provide safe, gentle, and effective products that support them throughout every age and stage of life.
It is the first and only doctor-developed, science-backed, non-toxic line of health and hygiene products without a prescription for women. Kushae has made significant strides, including becoming a venture-backed company and partnering with major retailers like Whole Foods Market and Wegman’s.
Don't miss an episode of The Power Up, subscribe now!
About The Business
Business name: Kushae
Founded: 2017
CEO: Kimba Williams
Website: https://www.kushae.com
Sales diversification strategy: E-commerce, wholesale
About Our Guest
Kimba spent over 15 years before Kushae as a pharmaceutical sales professional. During that time she developed an understanding of the effects of medication and how it affects women’s health and life. She discovered a need in the feminine care space for products that help women be more proactive instead of reactive. Also with a background in natural medicine, Kimba worked with her friend Dr. Barb to come up with healthy products to solve issues in women’s healthcare.
Kimba and Dr. Bard dove into research and development, testing the products on themselves along with friends and family for testing. But they needed to take it a bit further with clinical testing in order to bring it to market. Kimba shares, “Every small business owner needs to know, you can’t even rely on your families and friends as customers. They don’t know you as professional business people… They’re not going to take you and/or your new vision seriously. They were helpful in testing but now we’re going to take it to market. The way that we did that was going to roadshows.” This turned Kushae from a bootstrapped business to venture-backed which Kimba spearheaded.
Full Transcript
Sean (Thrive): Hello everyone, it’s Sean from Thrive with another episode of The Power Up, where I meet with successful small business owners and operators to learn about their business strategy so you can take their insights and level up your own business. Once your business is ready to expand, knowing where to start can be overwhelming. Our guests have some creative solutions for how they’ve tackled tricky problems and turned them into growth opportunities. Now, let’s dive into today’s episode.
Our guest today is Kimba. She is the CEO of Kushae. The story of Kushae began in 2017 from an innocent conversation between an OB/GYN, Dr. Barb, and an ex-pharmaceutical sales consultant turned naturalista, Kimba, on a girls’ trip. It was one of those magical moments where ideas flowed effortlessly, sparking the creation of BK Naturals. Their goal is to create effective, gentle, and naturally based feminine care products that are pH balanced and designed for women, by women.
Kushae is more than a business; it’s a mission to empower women and provide safe, gentle, and effective products that support them throughout every age and every stage of life. As the first and only doctor-developed, science-backed, non-toxic line of health and hygiene products without a prescription for women, Kushae has made significant strides, including becoming a venture-backed company and partnering with major retailers like Whole Foods Market and Wegman’s.
Kimba, are you ready to get started with us today?
Kimba (Guest): I am born ready! How are you doing, Sean? Thanks for having me.
Sean: Yeah, thanks for joining today. Really happy to have you.
Product development is clearly a big focus for you and your business, and how you’re creating your product. So, walk us through the process of developing your first product. How did you know, how did you ensure it was effective and gentle and natural and all the different pieces there?
Kimba: Absolutely, so thanks again. Great job with the bio, I appreciate it. Sometimes it’s hard to tell the story when it’s been so many years, I’m like, how did it all start again? But thanks for doing that.
So, product development was interesting. You know, my co-founder is an OB/GYN and she’s very comfortable with talking to women and understanding what their challenges are. So she really came with a beautiful perspective around, “This is what I hear day in and day out that women need solutions for, but not necessarily a prescription. So now what?” And so the goal was, how do we find them products that they can use daily for just maintenance without having to go down the road of prescription medicine?
And because I’m coming from the pharmaceutical sales industry, I know exactly what women need when they want to be more proactive versus reactive with their health. So I’ve also studied natural medicine and wanted to incorporate that into it. What natural botanicals and herbs can we use that will address the issues? If there’s irritation, what herbs can fantastically do that? If it’s itchiness, if it’s dryness, whatever the issue is that Dr. Barb has identified, then we relied on a little bit of expertise from me and understanding of herbal medicine to say what herbs can address that.
Now, we didn’t want to put anything together in our kitchen because this particular area is way too sensitive and vulnerable to be messing around. So we employed a team of chemists, other OB/GYNs, to really lean in and suggest how we should do this, what the texture should be, what the outcomes should be. We test it on each other as opposed to animals, even friends who were willing to do this once the chemist said, “We’ve got a formulation that won’t blow things up down there.” So we did all of the research and development, both internally and externally, and then begged friends to try it and promised that they wouldn’t be harmed. And thank goodness, they weren’t.
Sean: That’s good, that’s good. Very delicate, I’m sure. And then, over the years, how did you, as your customer base grew beyond just you and your friends, how did you take the feedback from those customers and employ it in your product development and improve the products you’re building over the years?
Kimba: Yeah, that’s a great question. So, first of all, I think every business owner needs to know that you can’t even rely on your family and your friends to be customers, right? They don’t know you as professional business people; they know you as the little kid who did blank when you were small, or, you know, they’re not going to take you and/or your new vision seriously. So, we knew not to necessarily rely on family and friends. They were helpful in testing, and then we’re like, “Thanks, we’re going to take this to market.”
The way that we did that was by going to road shows. We literally took the show on the road. Now, it was easier because that was 2018, 2019, so this was all BC, when I say BC, before COVID. So much easier for us to go to natural product shows and natural hair shows, anywhere that they were displaying natural products, where women were a captive audience and actually seeking natural products. It was much easier for us to sell one bottle at a time, talk to women, hug and cry, and laugh about some of their challenges down there.
Difficult to do; most women won’t open up to strangers about what’s going on down there, but we made it fun, we made it a conversation.
Using the name Kushae to begin with is a bit kitschy and spunky, and people got what we were trying to say with that name. So, if you don’t get it, Sean, you can meet me after class! But Kushae is indicative of what it’s for, but we made it a little bit sexier, right? So think Target and Tarjay, we took another word and made it Kushae. And so we allowed women to be able to talk about it openly and start giving us ideas around, “These are the things that they’re struggling with, that they don’t want to talk about, but would love a solution to blank.”
And then, remember, Dr. Barb is a certified OB/GYN with 20-plus years of experience. So people actually pay her to talk about problems, and so market development was much easier for us because we didn’t have to pay for that. Dr. Barb and I would meet every week, and she’d be like, “Here’s what patients are complaining about now.” And so that was much easier, and her patients got a bird’s-eye view of the new products, and we were able to do clinical testing based on their conditions, and we found that our products were 99% effective and are clinically proven. So it was just a beautiful match.
Sean: That’s great, love to hear that. So clearly, two big success points that we talked about, being venture-backed and then being in these major retailers like Whole Foods and Wegmans. So I’d love to jump into some conversations with those two topics.
So, talk to us about being venture-backed. How did that go for your business? What does that mean for Kushae?
Kimba: Absolutely. So, we were a bootstrapped company from day one. We never had any idea, first of all, of how big this would get. So, of course, you dream big, but then you’re like, “We’ll start at the bottom,” you know, because you have to. And so we bootstrapped and put our money into it. Dr. Barb and I both put some of our savings into it to start it off with R&D and development, and getting the products launched.
Several years into it, three years later, it was COVID. E-commerce was booming because people were staying at home and they weren’t going anywhere, and Kushae really just took off around 2020, of course, in 2021, and we realized that our growth was far exceeding the amount of cash flow that we were able to turn over very quickly. And that’s when we realized that it was time to seek bigger capital investment, that our little savings couldn’t do it anymore, and we turned to venture capital and angel investors to share the vision and to continue to develop the dream. And it was a hit.
It was one of the most difficult things we’ve ever had to do. I led the raise, very difficult to raise capital, even then. Now it’s even more difficult, you know, the stakes have changed and the climate has changed for capital investment, particularly around consumer product companies.
Everybody’s into tech, it’s so sexy, and I get that. So consumer product companies have to go out there and give it all they’ve got. We’re like, “Okay, we’re saving lives one bottle at a time!”
But I always remind people that large global economies like the U.S. survive on their, you know, gross domestic product, not the gross domestic tech. And although tech is enabling us to get products to people much faster and increasing accessibility, at the end of the day, everything that you wear, that you own, is a product. So let’s not forget the power of products, right? So that’s part of the spiel around we can’t forget the foundation, its products. And if you’ve got the right formula of great products solving a fantastic need for the majority of people on this planet, we’ve got a winning combination.
Sean: Yeah, that’s great. So you mentioned a couple of points in there I want to drill down into. One of the first things you talked about was that you realized you didn’t have the cash flow, specifically the cash flow needed to grow the business the way you wanted to, so you turned to VC. So I know a lot of folks in our audience, one of the big topics is cash flow versus profitability and, like, how do you look at those differently?
And a lot of people commingle those types of things, but you very clearly noticed that you didn’t have the cash flow needed to grow the business. So talk to us a little bit about that. Pretend like you’re a business adviser sitting here and share a little bit about your journey with looking at cash flow, and how you look at cash flow, and what it is, and how you take it to grow your business?
Kimba: Yeah, absolutely. You know, cash flow is tricky, particularly in inventory-based companies. That’s the issue, CPG was unfortunately designed to be an upside-down venture from day one. You’ve got to pump out tens of thousands of dollars before you can sell one product, which means that before I make any money, I have to spend a large quantity of money. And if my customers can’t buy what I purchased within 30 days, 60 days, 90 days, I’ve got inventory sitting on shelves that I’ve already paid for that I’m not getting paid for, right? So it’s, yeah, I paid you, but no one’s paying me. So it’s a backwards cash flow business.
And so what CPG companies have had to wrangle with or to understand, which eventually I got to understand, even though I’ve had an MBA, I’ve had another business before this, but it’s something that CPG companies aren’t told, aren’t taught. You really have to seek guidance on this piece: shortening that conversion, that cash flow conversion. So there’s cash flow, and then there’s how do you convert the cash, how do you convert products into cash faster, right? And most of that relies on working with your manufacturers to create terms that are much more supportive of a longer cash flow cycle. So saying, “Hey, I need net 30, I need net 60, I need better terms,” to pull out this idea that I have to pay you now and wait to get paid in six months down the line. I need a little help.
So, working with your manufacturers for better terms is one thing. Also, there are ways that you can finance those things that make it easier for you not to burn your own cash, but you can use other people’s money. So, whether it’s credit cards that have better terms or financing your inventory some other way, you’re using somebody else’s money to float your inventory until your customers get it and then convert with you and then obviously pay for it.
And I think the last thing is, again, hanging on to the cash as long as you can, but also negotiating with your manufacturers on cost. If it costs you less to make the products that you have, then you’re hanging on to more cash, right? So the goal is to hang on to cash as long as you can, with negotiating with everybody that’s part of your cycle, that’s part of your life stage, as far as manufacturing and inventory and sales are concerned. And if you can do that, you stand a much better chance of cash flow that’s positive faster than staying negative longer. And sometimes, of course, you need a capital injection to afford you, that’s really what capital is about when it comes to CPG, it’s affording you more time. And it also helps you market, because if you can’t market, customers don’t know and they can’t buy it.
Sean: That’s great. So, going on to the raise next. So you said you led the raise yourself, which is a heck of an endeavor for sure. Are you open to sharing some of the details of the raise, any of the financial figures, or partners that you found to lend you guys money? Are you open to sharing any of that information?
Kimba: I can’t share currently because we’re actually talking about extending the raise today, but what I can tell you is that how I was successful with the raise is that I went specifically for folks who were looking to invest in our business, right? So we looked for folks who were interested in investing in women-owned businesses, we looked for folks who were interested in investing in Black-owned businesses, and we looked for folks who were interested in either an agnostic industry, so no preference, or specifically CPG.
Initially, we raised, I can share that because that’s public knowledge now, initially we raised $1.3 million, and then went on to pull in more investors. I mean, we had to turn down money because we had so many folks that were interested, but the raise ended up at about $2.2 million at the end of the day. So we were able to raise that capital from, again, a venture capital firm and then some angel investor groups.
But I will say that all money is not good money, so that’s rule number one for anybody who’s raising capital. We turned down money because we realized it wasn’t a good fit. You’re going to be, literally, people say this all the time and it’s true, you’re going to be married to these people.
They’re going to want financial updates, reports, quarterly, monthly, yearly, whatever. You want people who are going to allow you to continue the magic of growing this business like you used to, without hampering you with things that pull you away from the mission and the vision of the company. It could be disastrous, and I’ve heard stories, I’ve seen things go really, really wrong, and so I’m grateful for the investors that we have. They’ve been fantastic, they’ve really been supportive without being micromanaging, that’s what you don’t want.
And again, be very focused on who you’re after. Don’t waste time on investors who are not interested in you or your type of business. You really can use them for practice, that’s what I did. I knew people wouldn’t really be interested, but I was like, “Let me practice,” because they’re going to start spit-firing questions about your financials and your business models.
Sean: What makes you different, exactly.
Kimba: Exactly. So it’s like, use the guys you don’t care about for practice, then get really, really wicked sharp, and then go after the folks that are your top ten, your top five, right? And the other thing I would say is don’t give up easily.
It took me 82 nos before I got to the first yes, and so when people ask me for advice, they go, “How did you do it?” I say, “You just have to keep going.” If you believe in what you’re doing, you know that the world needs it, you know that women need it, or whoever your target audience is, you just have to keep going. And you can’t take it personally. It’s just business. It’s not personal. So, you just keep going until you get a yes, and then you keep going after that.
Sean: That’s amazing. Eighty-two nos, and then you get the yes, and then it starts to snowball from there. That’s really inspiring, honestly. I think a lot of people give up after five or ten, so that’s a really good lesson for folks.
Switching gears a little bit, let’s talk about retail. So, you mentioned Whole Foods, Wegmans, and other major retailers. How did you get your foot in the door with those retailers? What was that process like, and what advice would you give to other business owners who are trying to get into retail?
Kimba: Yeah, so retail is a beast. It’s a different animal. It’s not for the faint of heart, and it’s not for everybody. I always tell people, “Don’t run to retail unless you are ready.” And what I mean by that is, retail is expensive. It’s expensive to get in, it’s expensive to stay in, and it’s expensive to grow in retail. So, you have to be ready for that.
For us, we started with a lot of outreach. We started with a lot of pitching, a lot of cold emails, a lot of cold calls, a lot of LinkedIn DMs, and just trying to get in front of buyers. And then, once you get in front of a buyer, you have to have your story tight. You have to know what makes you different, why your product is needed, and why it’s going to sell in their stores.
And then, you have to be prepared for the financial investment. So, when you get into retail, they’re going to ask you for free fills, they’re going to ask you for marketing dollars, they’re going to ask you for all kinds of things that you may not have thought about. And so, you have to be prepared for that. And that’s why raising capital is so important, because you need the money to support your retail growth.
But for us, it was really about persistence. It was about not taking no for an answer, and it was about being really clear about what we wanted and why we were the right fit for those retailers. And then, once we got in, it was about supporting the stores, making sure the product was moving, making sure we were doing demos, making sure we were doing marketing, and really supporting the retailers so that they want to keep us on the shelf.
Sean: That’s great advice. I think a lot of people think, “Oh, if I just get into retail, that’s the finish line.” But really, it’s just the beginning, right?
Kimba: It’s just the beginning. Getting on the shelf is the easy part. Staying on the shelf is the hard part. And so, you have to be prepared for that. You have to have a plan for how you’re going to support your retail partners, how you’re going to drive sales, and how you’re going to make sure that your product is moving off the shelf. Because if it’s not, they’re going to take you off, and they’re going to put somebody else on.
Sean: Yeah, absolutely. So, as you’ve grown, what are some of the biggest challenges you’ve faced, and how have you overcome them?
Kimba: I think the biggest challenge is always cash flow. It’s always making sure that you have enough money to do what you need to do. And then, I think the other big challenge is just managing growth. When you’re growing really fast, it’s easy to get overwhelmed, it’s easy to drop balls, it’s easy to make mistakes. And so, you have to have the right team, you have to have the right systems, and you have to be willing to ask for help when you need it.
And then, I think the other challenge is just staying true to your mission and your vision. It’s easy to get distracted by all the opportunities that come your way, but you have to stay focused on why you started and what you’re trying to accomplish. And for us, that’s always been about serving women, providing safe and effective products, and making sure that we’re making a difference in people’s lives.
Sean: That’s awesome. Well, I really appreciate you sharing your story and all your insights. Before we wrap up, is there any final advice you’d give to entrepreneurs who are just getting started or who are looking to grow their business?
Kimba: Yeah, I would just say, don’t give up. It’s going to be hard. There are going to be days when you want to quit. There are going to be days when you wonder why you started. But if you believe in what you’re doing, if you know that you’re making a difference, just keep going. And don’t be afraid to ask for help.
There are so many people out there who are willing to help you, who have been where you are, and who want to see you succeed. So, reach out, build your network, and just keep pushing forward.
Sean: That’s fantastic. Kimba, thank you so much for joining us today. It’s been a pleasure having you on the show, and I know our audience is going to get a ton of value from your story.
Kimba: Thank you, Sean. I appreciate it. Thanks for having me.
The Newsletter For Small Businesses
Weekly expert insights, industry trends, and inspiring stories designed to help you run your business with confidence.
Try Thrive Inventory For Free
Add Thrive Inventory to your business and maximize your potential. With powerful and easy-to-use products,
it’s time to take control of your business and see what you can do with Thrive.
