Tue, 3 March 2015
My favorite businesses are those that look a problem in the face, find a novel solution, and grow like crazy! These types of businesses involve extra challenges, uncharted territory, and a whole lot of innovation! If you're a bit crazy like me, all of that sounds rather fun! Julie Bombacino is the perfect example of a mom entrepreneur who solved a problem in her own life and then set out to solve it for thousands of others. She partnered with food scientists, researched the market, sought funding, worked with consultants, and so much more. You'll learn a ton about the world of start-ups as a mompreneur from this episode. Julie's company, Real Food Blends, has had incredible growth while improving the lives of others. Could our interview with Julie be just the inspiration you need to go for your own big idea?
Press Play on the Podcast Player below to hear the full story. On the Podcast01:14 - From Special Needs Mom to Entrepreneur From Special Needs Mom to EntrepreneurWhen Julie's second child, AJ, was 6 months old, he had a severe seizure due to epilepsy. After that seizure, he would aspirate breast milk and formula when eating. Fluid got into his lungs and caused health problems, so a feeding tube was necessary to keep him safe and healthy. As Julie says, the feeding tube kind of defined their lives for the last three and a half years. He was put on a regimen of synthetic formula to be fed through his tube. He threw up every single day and was constipated every single day. He wasn't growing like he needed to, and he was miserable. By the time AJ was 1 year old, he had gone through 8 different formulas with little success. Julie turned to Dr. Google for a solution, and discovered an incredible online community of people who had loved ones on feeding tubes. Many of them asked her if she had tried giving AJ real food through his tube. She started blending food for AJ and saw great results. He was keeping his food down and was finally growing and gaining weight. Not long after AJ began his real food diet, the Bombacino family took a trip to Disney World. Providing food for AJ that week was quite a challenge. She lugged along their VitaMix blender and traded a hotel for a condo with a kitchenette so she could blend his meals. She looked for a ready-made option for AJ, but it simply didn't exist. She wasn't willing to go back to formula, but she wanted an easier way to give AJ the nutrition he needed. Julie put her MBA hat back on, and Real Food Blends was founded not long after! The First Steps for Forming an Innovative BusinessBefore she dug into creating the solution to her problem, Julie researched the market to make sure her business would actually have enough customers and fill a true need in the marketplace. Once she realized that formula for feeding tubes is a 4 billion dollar market in just the US alone, Julie knew it was time to take the next step. Knowing she wasn't an expert in food science, Julie got in touch with researchers at a Big 10 University to see if her idea was possible. Shelf stability for her product was key, because she needed a way to ship Real Food Blends economically throughout the country, and even the world. Refrigerated trucks and extra storage requirements would have cost too much to make them a viable option. Julie had an inkling that her idea could be accomplished because the market was halfway there with the invention of baby food. However, baby food is designed to simply teach babies how to eat rather than be their entire source of nutrition. Someone who uses a G-tube needs the equivalent of an entire meal in blended form. After spending the first 6 months just researching and partnering with food scientists, Julie then reached out to food manufacturers who might be willing to work with her. Julie mentioned something that I hadn't considered before: food manufacturers don't often like to talk to entrepreneurs because they tend to think that their barbecue sauce or new spin on an old food is simply the best, and they plead with a manufacturer to just make a small amount. These kinds of small ventures don't interest a large manufacturer very much. Working with ManufacturersSo how did Julie get the manufacturers to listen to her?
As it turns out, after talking with numerous food manufacturers, Julie ended up partnering with the first one they talked to! Getting Investors + Crowdfunding for GrowthThe prospect of securing investors sounds overwhelming. Sarah and I have no idea how one would even start this process. Julie shared a few tips that helped.
With so many investors on board, why a Crowdfunding Campaign? When Real Food Blends launched a campaign on Indiegogo, the point wasn't to raise a ton of money to develop the product, the point was to use it as a proof of concept, as well as take advantage of the viral nature of crowd-funding. (Spoken like a true marketer!) There are a few things we can learn from Real Food Blends' Indiegogo Campaign
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Getting Insurance Approval for Medical ProductGetting insurance approval for a new product sounds like a daunting task. How did Julie accomplish this? Once again, she was smart enough to know what she didn't know! She reached out to a consultant for help. This consultant had a long history in medical affairs, so she knew what to do. The process involved a lot of paperwork filing, dotting i's and crossing t's. Once you receive a HCPC code for your product, then anyone who bills to insurance can use that code to see if it's a covered benefit for their patient. Why Empathy is Good for BusinessOne of the strengths of Real Food Blends is that Julie is her own ideal customer. She's a mom who still remembers being scared to death when she first had to Because of this empathy, Julie easily puts herself into the position of those new parents and caregivers who are looking for as much education, information and support as they can get. Her website, Real Food Blends, isn't just a place to buy her product, it's a place to receive that extra reassurance and education. In addition, the Real Food Blends Facebook Community is a vibrant place full of families who share their stories. Julie knows first-hand how isolating it can be to live in the world of tube-feeding. "You can't go down to your local Starbucks and see people with feeding tubes," Julie says, so the online community fills that void and makes you feel less alone. 5 Key Methods for Reaching Healthcare ProvidersIn addition to creating material that reaches the families, caregivers, and individuals with feeding tubes, Real Food Blends has to provide education to dieticians as well, because they're the individuals making decisions about what people with feeding tubes should receive for their nutrition. Reaching healthcare professionals, and dieticians in particular, is a key component to the company's growth. So how does Julie do it?
Sarah brings up a great point during the interview. If you can come up with a great business idea that fits into a profession's continuing education requirements, go for it! There are so many professions with these types of yearly requirements, so you'll have a captive audience to educate and share your product or company with. How to Get Your Foot in the DoorReal Food Blends now works with many medical supply companies. To get those partnerships started, Julie needed not just a HCPC code, but the flexibility to get in the door. They were more than willing to work with a company on terms and pricing, because they just wanted to get in the door. A lower price was acceptable in the beginning, because they were confident that once their customers tried the product, they would love it and be back time and time again. (They were right!) Julie brings up a key point for new businesses. If you know you have a great product, and it has a recurring revenue stream built into it, it's ok to set a lower price to get your foot in the door. However, if your product is generally a one-time purchase for someone, a lower price that kills your profit margin is not going to work out! Offering Nutrition All Over the WorldJulie's commitment to offering Real Food Blends to everyone with feeding tubes means that they found an effective way to ship their product internationally. Since they're technically exporting food, the process is not as simple as a customs declaration. Each country has its own rules about accepting food from America. Real Food Blends partnered with MyUS.com to ship food worldwide. Essentially, if an international customer wants to purchase Real Food Blends, they sign up directly with MyUS.com to set up shipments. The company's main focus is shipping things from the US to other countries - so they're experts at it. Julie and her team don't need to worry about the regulations and all the steps involved, and their customers are able to get the products they want. Win-Win! 7 Tips for Staying Sane
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Julie's 5 year-old Marketing GeniusWe LOVED hearing about Julie's 5 year-old daughter Luca and her genius marketing idea for Real Food Blends. Tune in to hear the full story! Learn More About Julie!RealFoodBlends.com The Facebook page is very active for Real Food Blends. Their customers take photos of their first shipment of the product because they're just so excited. They share stories of children who have gained weight or are healthier. They share pictures and really, just share their lives with Real Food Blends. Julie encourages everyone to dig into their story and the stories of their customers. What do you think? Are you ready to finally go for it with your brilliant business idea? I hope Julie's story convinced you that no matter how big or daunting your dream, if you take things step by step, seek the right help, and keep going, you can make that vision a reality! ~ Beth Anne
Direct download: Episode207520Julie20Bombacino_mixdown20final.mp3
Category:general -- posted at: 3:30am EDT |