Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
For any old person who’s lamented about “kids today,” this story’s for you. Isabel and Caroline Bercaw of Edina are co-founders of Da Bomb, the manufacturer and distributer of fizzy bath bombs. With help from their mother, Kim, who is CEO, and their father, Ben, who is CFO, they’ve built the business to $20 million in annual revenue. They are one of six Minnesota winners of the EY Entrepreneur of the Year 2019 Heartland Awards,
They employ 130 people, proudly paying benefits and living wages, as Caroline explained, and scaling up to about 230 employees during the holidays, in a building Isabel said they were “fortunate” to purchase so they can control their real estate costs.
Here’s the kicker: Isabel is 18, starting as a freshman this year at the University of St. Thomas in the Schulze School of Entrepreneurship, and Caroline is 16, a junior at Edina High School. They were absolutely delightful in an interview this summer, but to say so sounds patronizing and minimizes what they’ve created, starting when they were just 11 and 12.
The sisters were figure skaters and soccer players and they’d use other fizzy bath products but found they would stain the tub and sometimes their skin. So, they decided to create their own, putting a “fun surprise” in every bath bomb, like the Fairy Bomb with a fairy charm inside. Inspired by their younger brother they created the Ninja Bomb that turns the water black. Caroline’s favorite is Earth Bomb, proceeds of which go to organizations that help the oceans.
They first made bath bombs starting in 2012 for an art fair and quickly sold out. Then, in 2016, Target came calling and the building purchase and executive positions for Kim and Ben followed.
Isabel counts “fearlessness” as one of the pair’s main qualities. Also, “obliviousity.” Is that a word? I like to make up words,” she says with a laugh. She means they didn’t have a clue what they were getting into and that’s a good thing.
Says Caroline: “Isabel and I were so young when we started this.” Adds Isabel: “A lot of people are scared to start a business. We were so young, we were like, ‘Oh this sounds fun.’”
The grounding influence of their parents is abundantly evident. Says Isabel about their parents: “They’re so intelligent and I look up to them so much. They’ve inspired curiosity in us. That’s the main building block to become entrepreneurs.”
Isabel counts a couple of turning points in their young life. “We were in Forbes 30 under 30 class of 2019. That was on my bucket list,” she said. For the EY awards process, “we felt really supported,” and she especially likes the chance to talk to other entrepreneurs.
As for keeping their heads in heady times, they run counter to the Instagrammers with their riches and baubles. Money from the business gets invested back into the business. “We don’t make money at all until we sell the business,” Isabel says.
They pay themselves minimum wage, just like other teenagers who work at Starbucks or wherever, although they did take a draw from the company to buy themselves a car — used – that they share.
Isabel shares advice they received: “Never make decisions out of fear or greed. We do live a high quality of life and have privilege,” and Caroline chimes in with what matters more. “I’m proud that we pay living wages and provide health insurance” for all those employees, she says.
Adds Isabel. “I’d rather do that than have a collection of Gucci jumpsuits.”
