What I learned from Raising Money.

A year ago I didn’t know any investors. I didn’t know how to find them, let alone ask them for money. When I first set out to fundraise, I was scared to ask for more than 250k. I had the mentality of only wanting to ask for “enough to get by”. I recently closed Nopalera’s oversubscribed Seed Round of 2.7 Million. How? The first thing that had to change was ME.

Here's what I learned about myself and money through this fundraise process.​
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1. When you are an early stage company, people are investing in YOU. ​
You will need to define clearly why YOU are the badass CEO that can build and lead a team to the finish line.
​You need to exude confidence. If you are feeling unworthy, small, and insecure, you will repel money.
I am fortunate to have over 15 years of experience being a bandleader under my belt. I have played for thousands on stage as well as to four people and had to bring the full energy each time regardless. I've been rejected by hundreds of clubs and talent bookers. I kept going. You will never build your confidence muscle if you quit.
​side note: this does not mean you won't get nervous or feel like you are going to throw up before you pitch or go on stage. I still get nervous. ​
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2. Rich people know other rich people. Ask for introductions.
​One year ago, I knew exactly ZERO Venture Capitalists or people with a lot of money. If you are asking yourself "how do I even meet VC's?", I feel you. That was me. Now I have a list. How? I met one - they introduced me to two, etc.... I created a Twitter account to start following VCs. They are all on Twitter. The platform will recommend others to follow once you follow one. Listen to them talk to each other. Follow them on Twitter and LinkedIn. Let me say this another way: DON'T SIT AROUND WAITING FOR SOMEONE TO FIND YOU. They will not. Make yourself visible. Put yourself in new rooms.

3. Create a stunning deck with headlines at the top of each one. Speak from a place of Authority.
Practice in front of your friends.
​People do not read. All of us, including investors, are still like cavemen. Tell me ONE thing and show me a picture. If you cannot get your point across quickly, you need to work on your story. What does every magazine and newspaper have in common?
Headline + picture. All decks need to show: WHY, PROBLEM, SOLUTION, MARKET SIZE, TRACTION, ROADMAP, TEAM, WHY YOU, THE ASK. Even if you aren't raising, you need clarity on all of these things!
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CONFIDENCE + CLARITY = CASH. (see point #1!)
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4. Get all your docs and IP together.
​Before people give you large sums of money they need confirmation that your business is set up correctly.
Documents of incorporation and intellectual property. The IP dilligence slowed down the process and added stress for me.
Have you trademarked your name? Is it owned by you personally or your C-Corp? Do you own your formulas? Do you have contracts in place with retailers and co-packers? Listen, no one starts a beauty brand so they can deal with paperwork. But if you don't set it up properly and document everything in the beginning, it will come back to bite you, or worse, slow you down. Part of fundraising requires you create a Data Room. This is nothing more than a google folder with folders inside.
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​5. Money begets Money. ​
When I first started the raise, many investors told me they "didn't want to be the first $500k". Nobody wants to be first on the dance floor. My shoulders were tense when after a few months of pitching I still did not have a YES. Did I doubt myself? YES. Did I quit? NO.
Say this mantra to yourself everyday: THERE IS A LOT OF MONEY IN THE WORLD. (cuz it's true)
What does working on your money mindset actually mean?
It means actually rewiring your brain to believe a new story about your relationship to money and your own self worth.
How do you do this?
You literally talk to yourself and write a new story. Not once. Not twice. EVERY FUCKING DAY.
I literally lied in my bed every morning and pictured the money already in my bank account.
I listened to a guided meditation every day that asked me to think about three things I wanted and be grateful they were already mine.
​
I'm 46 years old. The amount of times I have said the phrase "I'm broke" in my life is too many to count.
STOP STAYING SHIT THAT KEEPS YOU STUCK.
The most important story is the one you tell yourself.
Trust me when I tell you that whatever YOU (yes, you have control) put in your head, you will find proof that it is true. Especially the negative things.
Did you listen to The Nopalera Podcast episode with Linda Garcia? Stop what you're doing and listen to it now. (leave a five star review while you're at it:)
Don't even get me started on the "jenny from the block" syndrome! (where you think you need to stay broke to stay connected to your roots) I ranted about that over on Jannesse's Yo Quiero Dinero Podcast. I did the starving artist thing for decades. I'm done with that.
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Back to the point...
Once I had a lead investor commit, all of a sudden everyone wanted to give me money. To the point where I had to say "NO, sorry it's too late for this round" to people. WTF. Literally weeks before I was desperate for money and now I was turning it down? WILD.
This is how I set out to raise 2MM but ended up with 2.7MM. Money begets money.
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6. "Money is cheap. It runs out. Then what?"
​This is something my lawyer actually said to me. The point here is when you take on outside investors they need to be bringing something else to the table besides their checkbook.
Reminder: There's plenty of money in the world.
Ask for the resources you want and need to grow your business. Define what you need BESIDES the money. Do you need sales expertise? Marketing? Industry connections? Some people asked me why I didn't raise through crowdfunding. The answer is NETWORK. I want the investors network and resources to help us grow.
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Wholesale Checklist & Things To Consider

One of the questions I receive the most is about getting into wholesale.

Wholesale is 55% of my business and DTC is the other 45%.
It's a nice mix.

BUT….

Would you be surprised if I told you that the wholesale accounts that are my bread and butter are the ones you've never heard of?

That's right. It's not Nordstrom, Credo, or Free People that are keeping the lights on.

Big retailers have net payments terms and chargebacks. This means you are waiting to get paid for 2 months sometimes and then when you DO get paid, there are deductions. You don't get as much money as you thought.

I sell to over 300 boutiques nationwide. They pre-pay, there are no chargebacks, and they don’t require huge marketing support.

Questions for you:
1/ Why do you want to get into wholesale accounts and what kind?
2/ Do you have the operational backend to support fulfillment?
3/ Do you have a warehouse with a loading dock?
4/ Do you have the inventory to support your retailer demands?
5/ CAN YOU AFFORD TO SELL WHOLESALE?

#5 is the most important, ya'll.
You need to have strong margins to be able to AFFORD to sell wholesale.
So many brands do not and then they end up making no money.
I used to work in CPG and experienced first hand how brands can make no money selling into wholesale accounts. That experience is actually why I started teaching food/bev brands back in 2019 about the reality of grocery distribution. I’ve helped over 200 brands gain insight into that part of industry.

Beauty is different.
You don’t need to work with distributors to sell into boutiques or beauty retailers in the USA.
But you still need to have strong margins and understand retailer margins.
I offer the Margin Magic Masterclass on-demand for this reason.

Wholesale checklist ✅
1/ Have GS1 barcodes for all your SKUs
2/ Have case packs built at the manufacturing level
3/ Have your assets ready:
hi-res photos (from your website, on-white, and lifestyle)
product briefs for each SKU for retailer education
Training video for retailers
Founder bio + headshot.
4/ Hi-res digital sell sheet. Full color bleed. Product pics with barcodes, case packs, order contact.
5/ Order & fulfillment system. Create a company email for orders. Determine the workflow. Who will process, ship, invoice?
6/ Invoicing and accounting system (quickbooks)
7/ Inventory management system (who's tracking it?)

These are all the things you want to have in place before you start trying to sell into wholesale accounts.
Let's say you have all of that.
How do you actually get into the accounts?

This is a deeper question. There are no tricks.
You have to have a strong brand that is adding something unique to the store's assortment or category.
Think like a buyer. They get hundreds of submissions regularly.

What is your brand bringing to the table that is missing in the marketplace and can help the retailer make more money? Vegan and cruelty free are no longer unique identifiers.

I offer the Brand Building Workshop to walk you through the steps I took to build my brand foundation.
This part happens first, btw.

Did I get my brand into Nordstrom because my products cleanse the skin well?
Absolutely not. Lots of products cleanse the skin well.

I got into Nordstrom because I created a strong brand (visually) that stands for something beyond the products themselves.

There is a lot of competition. You need more than great ingredients to stand out.

As a former sales rep, I want to leave you with one piece of advice about pitching your brand:
It's not about how good it works (or tastes, if you have a food brand). Those are important, of course, but why is someone going to pick it up and try it for the first time?

The presentation & positioning is everything (translation: branding and value proposition)

How did I get into the 300 boutiques?
They came to me.
How?
Because I ran facebook and instagram ads and they saw them and applied to be a stockist. The advertising landscape has changed since I launched due to IOS privacy updates. But many brands are still seeing a return (including me).
I recommend working with a freelancer who understands how to create and manage ads. Marketing and Ads are not set it and forget it events. You are always testing and improving. It’s a part-time job.

Be ready. Have a wholesale application form on your website.

Discovery is a mythical unicorn. All of us like to feel like we discovered things but the reality is it was put in front of us.

You can also try wholesale platforms like:
Bulletin
Faire
Adit

If you have more questions, reach out.

Recipe For A Success Squad

One of the best decisions I made when I launched Nopalera was join a mastermind of WOC entrepreneurs.

I knew that what was missing in my life was a new community of badass women with a growth mindset who were actively leveling up.

The mastermind had a monthly membership price and I already knew the importance of investing in myself. It was worth every penny.

I met my CEO $quad inside this mastermind and we have developed a strong bond. There are five of us in total and all of us are at similar levels in our business. That part is important.

YOU NEED A SUCCE$S SQUAD.
You need people that cheer you on and celebrate all your wins as well as lift you up when you are down.
What goes into the squad is equally as important as what stays out of it.

RECIPE FOR A SUCCE$S SQUAD
cook time: ASAP
servings: 3-5

ingredients
3-5 Fierce Women
Similar Biz Level
Growth Mindset
Giver Energy
Value Alignment
Mission Driven
Empathy
Joy

directions
1. Actively look for community
2. Commit to regular engagement. Virtual OK.
3. Open your ears.
4. Give then receive.
5. Be vulnerable
6. Hold each other accountable
7. Sometimes just hold each other
8. Send messages such as "HELL YEAH!"
9. Be legitimately happy for wins that are not your own.
10. Celebrate each other often.

the following will ruin the recipe. Please leave out.
x Jealousy.
x Pettiness
x Lies
x Disrespect
x Flakiness
x Excessive whining

Can I be successful and still stay connected to my roots? YES

There is a deep seated fear amongst many Latina founders (and perhaps other BIPOC founders too) that if they become wildly successful they will no longer be connected to their roots. That somehow, building a multi-million dollar business is a betrayal of their authenticity. Can you still be brown and down AND run a profitable business? The short answer — YES.

Money does not make you a bad person. Just like being broke does not make you a good person. ​

In fact, I could make the argument that staying small is actually selfish. How does you scraping by—living month to month — help your children and future grandchildren? Speaking for myself, my ancestors did not come here so I could play small and sell soap for $3. Staying broke does not = humble.

We need to let go of this narrative.

I’ve worked on my mindset A LOT since launching my company. I’ve read books, listened to podcasts, sought out new friends. It’s still a daily practice. I still feel the scarcity creep in sometimes.
Have you felt the panic need to cling to every dollar because you think there’s no more where that came from? Does spending money make you mad? Scared?

Step 1: understand and identify what your current relationship with money is.

We are all products of our environment. Step 2: change your environment. This does not happen overnight. It has taken me years to undo inherited fears and feelings around money. We don’t even know it — but most of our our money wounds start with our family. Our parents are also products of their environment. Add to that —distrust of institutions (banks, government, stock market), fear of deportation (stay under the radar) —it’s no wonder we have inherited deep money wounds without even knowing it.

But now that we are here, sometimes our peers or immediate family can be culpable of holding us back.
Who do you think you are to run a wildly profitable business?
Who do you think you are to charge XX for your products?
Or my favorite, “Real Latinas can’t afford that.” (< this has actually been said to me)

Excuse me, did you just say that REAL = BROKE?
I reject this mentality with every fiber in my body.

I want to invite you all to dream BIG. If you have an idea, it’s for a reason. I want you all to be wildly successful. I want you to get excited about what you are going to do with the RESULTS of your success.

I want you to write it in your journal everyday. Put post-it notes around your house with feelings of your future self. Surround yourself with people who want to see you WIN. Get rid of people who say things like, “that must be nice”. We don’t have time for jealousy, negativity, or pettiness.

There is too much at stake.

LET’S GO GET IT.

How To Talk To Co-Packers

​Co-Packers (manufacturers) receive a lot of inquires from founders who do not understand the business, can't afford their minimums, and don't have a clear roadmap.

It takes as much energy to produce 1000 units for a small brand as it does 10,000 units for a midsize brand.

Put yourself in their shoes. Who likes their time to be wasted? Nobody.

​TIP: Use their language to instill confidence you will be a good partner. Think of it like a partnership, because it is.

​HERE ARE SOME TIPS ON HOW TO TALK TO CO-PACKERS

1. ​Personalize your subject line. It sounds simple and mundane, but the first step is to get them to open your email. Example: Hi John: Nopalera x Copacker name - New Client Inquiry
   

2. ​Introduce yourself + your brand + power statement in the first sentence.
   Example: Hello John, This is Sandra from Nopalera, a Mexican Botanical Bath and Body brand currently sold in Nordstrom, Credo, Free People, and over 300 independent retailers nationwide.
   * If you are just starting out, no worries! Still introduce yourself and brand and say what your mission is.
   

3. ​Ask the following questions to show them you understand how this works.
   "I'd like to speak to someone regarding your capabilities, MOQ's, and lead times for new products. I am happy to send over a product brief in the interest of time."
   

4. ​Have a product brief ready! What is a product brief? It is a pdf document that outlines what the product is. Ingredient must-haves. Ingredient No-no's. Size, dimensions, packaging. I make all my product briefs in Canva.

   • ​NOTE: If you are looking to have them use your formula, you need to send over an NDA first.
     

5. ​Once the conversation is rolling then you want to ask more questions about line trials (these may cost), micro testing, case packs, payment terms etc...
   
   p.s. another pro-tip: write them from a professional email account with a complete signature. Don’t write from you personal yahoo account. Have all your links in your signature so they can visit your website.

Pride is not an Asset + Not everyone needs to like your product for it to be successful.

I've just returned from one of the most amazing mastermind conferences of my life.

Over the course of 2 1/2 days, I had the opportunity to hang out with some of the most badass women I have ever met. Some of them were even my sheroes — like, Arlan Hamilton.

If there is the slightest chance that you don't know who Arlan is, a quick google or youtube search will fix that. Here's one of many.

​Anyway...

I almost didn't attend this conference because it was thousands of dollars. EVEN WITH the scholarship, which I won. But, I simply have too much proof at this point in my life that when I invest in myself, it pays off.

To be an entrepreneur requires you to push the boundaries of what you thoughts was possible. Sometimes it costs money.

And what I also know is this: money is a renewable resource. Your time is not.

I put this event on my Amex. Rented a car on my Amex. Rented an Airbnb on my Amex.

And it was all worth it.
Do you hear me? I have thousands of dollars in student loan debt right now, no real savings, and I invested in myself anyway.

Being in the room with next level people will force you to level up.
I cried tears of clarity. I cried at my fears and felt them release.
In short: I am transformed.

Lesson: put yourself where amazing people are even if it costs you money.

​One of the gems from the conference was something Arlan Hamilton said: "Pride is not an asset." [insert mic drop]

This is coming from a woman who used to be homeless and was sleeping on the floor of the San Francisco airport when she decided she was going to start an VC fund for underrepresented founders and went to meetings to ask for the money. Do you think they all said YES and that's why she's here? No. She heard NO over and over and over again.

Lesson: Every road to success is littered with Nos.

If you are out there feeling defeated because you tried to get your product into 10 stores and they all said NO, keep going.

If you are out there looking for loans or investment and 10 people have told you NO, keep going.

Don't complain until you have HUNDREDS of Nos.

Most people give up too early because their pride is hurt.
They are embarrassed. They are worried about what people with think of them.
Family, friends, even strangers.

Pride is not an asset.

got it?

​As you may know, I've been teaching classes to CPG founders since 2019. I used to vet them to understand where they were in their business and where they wanted to be.
90% of them used to say they wanted to be the #1 blah blah blah.

Listen, I want you to reach for the stars. But I also want to invite you this reality: You don't need everyone to like your product to build a million dollar brand.

There are 329 million people in the USA alone. Can you even picture how many people that is? That's enough for everyone's brand to win. You don't need them all to like you. In fact, my experience has been that when you great a brand that stands for something strong (like celebrating Mexican culture) some people will come out to hate you. Let them come! That's what the block feature is for!

Every person in history that has made a impact for good has haters.

Focus on speaking to your customers about things they care about. Your values. Your WHY.

xx

Sandra