You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.
Photo: Courtesy of Jacquelyn Rodgers
Jacquelyn Rodgers knows firsthand that representation matters. “Growing up, my mom painted angels, nativity scenes, and Santas brown, like our family,” explains Rodgers. “She was very intentional about making sure we had images that looked like us.” So naturally, when Rodgers had children of her own, she also wanted her son and daughter to see themselves reflected in a Santa who looked like them, but she soon discovered there was still a void in the market for diverse representations of the Christmas character, even all these years later. After a search for Black Santa-themed holiday wrapping paper left Rodgers empty-handed, she decided to do something about it. Given her past experience in consumer packaged goods and her knack for sales and marketing, she was confident she could address the gap in the market for diverse gift wrap.
And that's exactly what she's been focused on since launching Greentop Gifts in 2016. Today, the brand’s signature character, Clarence Claus, isn’t just on gift wrap, he’s also on pajama sets, “ugly” Christmas sweaters, and ornaments, all of which helped propel Greentop Gifts to recording its highest sales yet in 2020. And being featured in O Magazine as one of Oprah Winfrey’s “Favorite Things” certainly helped the brand’s rapid growth! Despite the pandemic, the business has continued to thrive thanks in part to Rodgers being the recent recipient of small business grants from the Visa and IFundWomen Black Women-Owned Business Grant Program and the Black-Owned Small Business Impact Fund from Beyoncé’s BeyGood and the NAACP. In fact, next month, the brand is set to expand its offerings beyond the holidays to include year-round celebrations, from baby showers and children’s birthdays to graduations, with the goal of making these special occasions more inclusive and diverse.
Scroll on to learn more about how the successful entrepreneur built her barrier-breaking brand, including why she believes having honest conversations about money can make all the difference in the financial success of a company.
Can you tell us a bit about your background and what you were doing professionally before launching Greentop Gifts?
My background is in sales and marketing. Prior to working on Greentop Gifts full time, I worked for over a decade at two of the top 100 consumer packaged goods companies in the United States. I started the business while working full time and so many of the skills and day-to-day functions of my corporate career have been extremely helpful in starting my own business.
What was the “lightbulb moment” for Greentop Gifts? What inspired you to start your business and pursue this path?
Growing up, my mom painted angels, nativity scenes, and Santas brown, like our family. She was very intentional about making sure we had images that looked like us. Once I had my son, I wanted him to see images that looked like him, and I quickly realized there was still a void in the market. After searching retail stores in multiple states and not seeing any products like my idea at the time, I knew there was a void in the market and a need for items like we created.
How did you fund Greentop Gifts? What were the challenges and what would you change? Would you recommend that route to other entrepreneurs?
We self-funded the business in the beginning. We later had a small friends-and-family round to help us with buying inventory early on. In 2020, we won three small business grants that have helped us fund our marketing efforts even more. The challenges with self-funding, for us, was growing slowly. Every penny counts and we had to be very intentional with our spending. If you are able to self-fund or take out business loans for product-based businesses, I would recommend it. Everyone doesn’t need to bring on investors in the beginning.
Where do you think is the most important area for a business owner to focus their financial energy and why?
The most important area to focus your financial energy is understanding your basic cost of doing business and your margins. Before launching our business, we researched shipping, freight, sales and usage tax, shipping supplies, etc. Making a list of all your expenses and fees is always a great exercise to focus on before launching your business.
What was your first big expense as a business owner and how should small business owners prepare for that now?
Our first really big expense was shipping. We are an e-commerce based business and seeing our first shipping bill from our fulfillment company was a shock.
What are your top three largest expenses every month?
Our top three expenses every month are marketing, shipping fees, and payroll.
Do you pay yourself, and if so, how did you know what to pay yourself?
I don't pay myself a formal salary.
Photo: Courtesy of Jacquelyn Rodgers
Would you recommend other small business owners pay themselves?
In the beginning, you should pay yourself enough to survive. Remember, starting a business is one thing, but turning a business into one that has consistent success is going to take sacrifice. Most of your money has to be reinvested in the business to really grow it. The next idea, the next employee, the next office, the next warehouse. You have to eat and pay the bills obviously, but beyond that, you've got to make sure that your business is surviving as well.
How did you know you were ready to hire and what advice can you share on preparing for this stage of your business?
I knew we were ready to hire when I couldn’t focus on innovating new products because I was focused on the operations side of the business. The business would not grow if I didn't make time to create new products. When you start your entrepreneurship journey, your business is your baby. I struggled to turn over some aspects of my business, but once I found the right people who were experts in their fields and could help us grow, it made it easier to hand off certain aspects of the business.
Did you hire an accountant? Who helped you with the financial decisions and set up?
We did hire an accountant. My husband has a background in finance and was able to manage those decisions in the beginning.
What apps or software are you using for finances? What has worked and what hasn’t?
When we first launched we used QuickBooks and recently switched to Bench Accounting. Both have been helpful as we grow and scale our business.
What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?
For small business owners, get rid of bills that are burning money! We had a few subscriptions and services we were not utilizing and those were first to go.
Do you think women should talk about money and business more? Why?
Yes! Having conversations about business credit, raising capital, and making smart financial decisions early can make all the difference in the financial success of your company.
Do you have a financial mentor? Do you think business owners need one?
I don’t currently have a financial mentor, but I have strong business relationships with our accountant and a local bank. My co-founder has an MBA in finance. His background and work experience have been extremely helpful as we grow our business.
What is your best piece of money advice for new entrepreneurs?
Don't blow your money. It is going to be tempting to think you've made it in the beginning and go out and spend money. Avoid that urge. Think about your business. Plan for your business. You haven't made it just yet.
MORE ON THE BLOG
