An Interview With Fotis Georgiadis
It will take longer than you think, add in buffer time– Things just take time. I tend to be a time optimist…thinking that a lot can get done in a very short amount of time, and sometimes it can! But more commonly, things take longer than anticipated. It turns out that lead times on stainless steel and manufacturing equipment are not quick, small startup companies aren’t always prioritized by suppliers, and there is always a chance of major supply chain disruptions!
As a part of our series called “Making Something From Nothing”, I had the pleasure of interviewing Tessa Porter.
Candy Scientist Tessa Porter is the President and Founder of Sprinkk, a candy development and manufacturing company based in Omaha, Nebraska. She’s also the Founder of Norma’s, a new natural fruit snack brand. Tessa honed her sprinkle-fueled superpower while leading at the Ferrara Candy Company as Head of Innovation and Technology. She has a Masters in food science from the University of Wisconsin-Madison and an MBA from the University of Nebraska-Lincoln. In her free time, you’ll find her in a yoga studio, hanging out with her family, or chasing the wind around the world to go kite-surfing.
Thank you so much for doing this with us! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a bit about your “childhood backstory”?
I grew up in rural Nebraska in a very blue-collar family and community. My dad worked two jobs as a postal carrier and ran his own concrete and masonry construction business. Mom was a stay-at-home mom until I was in middle school and then went to work part-time for the church. Both of them were really keen on teaching my two older siblings and me to work hard and be smart. As part of the whole “learn to work hard” part of growing up, I had a somewhat unusual job as a teenage girl working on concrete construction every summer for my dad. I hated every second of it at the time but am now very grateful for it, making every other job feel physically easy in comparison. It was communicated early on that our parents weren’t going to pay for college, so we had the best work hard to get scholarship money. I’ve always been the type of person to love to conquer a challenge, so I took that on with vigor and became quite the nerd!
I didn’t know that food science was an actual career until I was graduating high school, but I’ve always had a love of science and food as a young kid, and I knew I wanted to be a food inventor. I spent countless mornings waking up early to try to develop a way to make an edible tape to keep my tacos closed when the tortilla would tear. It just seemed like something that should exist but didn’t.
In high school, I worked at a local café and catering business in the mornings. The owner let me come up with new desserts for the café every day, letting me create whatever I could dream up. Meanwhile, I was also a waitress, cook, and dishwasher, all at the same time. It was a small-town business! It was frequent that I would serve breakfast or lunch to local construction crews and then meet up with them in the afternoon on the job site where I’d be helping my dad lay brick or pour concrete.
Once I discovered food science, I completed my bachelor’s degree in food science and technology at the University of Nebraska- Lincoln. It was here that I discovered candy science through The American Association of Candy Technologists and their national scholarship. This led me to multiple internships at The Hershey Company, completing my master’s in food science while studying sugar crystallization at the University of Wisconsin-Madison, and then getting hired as a food scientist at Ferrara Pan Candy Company, now known as Ferrara Candy. I spent the bulk of my career growing with Ferrara through mergers and acquisitions and building out the R&D team and innovation pipeline to keep up with some substantial growth of the company.
With my family all still based in Nebraska, I innately knew that I would likely someday come home to The Good Life. However, I didn’t want to leave candy, and candy didn’t really exist on the manufacturing scale in Nebraska that I liked to work in, so I planned to create new things on my own. Sprinkk is a business that developed out of the need for innovative manufacturing space within the confectionery industry and also my desire to move home. A company like Sprinkk, where new candy products can be made with flexible process design and lower hurdles to entry, didn’t really exist anywhere yet, so there was no reason that it shouldn’t exist in Omaha, Nebraska! Since starting up in January 2020, we have grown into a development lab writing formulas and process designs for major candy brands and emerging brands. I’ve also launched my own brand, Norma’s Fruit Snacks, as somewhat of a test of the Sprinkk business model and manufacturing goals while also getting to create wholesome, transparent products that I’ve always wished existed. Currently, in 2022, Sprinkk is on target to have our first manufacturing facility operating by the end of the year, with another in the works for a startup in 2023/2024!
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
Something that I tell all of my clients and marketing teams is, “Anything is possible with enough time or money…within the laws of physics. The challenge is when we expect to do things fast AND cheap.”
As a product developer, I often get asked, “do you think it is possible?” and the answer is usually “Yes…with enough time and money.” If you have the time to do thorough research and development, you can often avoid some hidden costs. If you are on a tight timeline but have substantial funds, you might afford to take on more risk and fail fast.
Is there a particular book, podcast, or film that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
The podcast, How I Built This with Guy Raz, has kept me company on many long drives across Iowa. When I still worked in corporate and lived in Chicago, I would often travel back home to Nebraska or to one of our manufacturing facilities in rural Iowa, spending 8–10 hours in the car. The startup stories of other successful businesses and entrepreneurs made me realize that we can all have a different starting point and still achieve big success. There is no reason that I, or anyone, else can’t build something uniquely successful. We each get to map out our own path. The podcast also helped me build the perspective that the challenges along the way now, will just make for a better story later when I get the chance to talk with Guy Raz myself.
Ok super. Let’s now shift to the main part of our discussion. There is no shortage of good ideas out there. Many people have good ideas all the time. But people seem to struggle in taking a good idea and translating it into an actual business. Can you share a few ideas from your experience about how to overcome this challenge?
The path of innovation often looks like a black hole from a distance. But zoom in, and it is always one step that leads to the next. Or, more so, one question leads to the next, which eventually leads to answers. I really like the Agile development method of using mini “sprints.” You have to sprint in a direction and take action, any action, in order to figure out the next step. Sometimes you’ll find out you are going in the wrong direction, and you need to recalibrate, but the faster you can do that, the faster you can turn to the right direction, and the only way to do that quickly is to GO! So, try things, ask questions, and often step back and recalibrate.
Another piece that has helped me and countless others is to team up with an experienced financial team from the beginning to help create your business model. There are many hidden costs in running a business beyond making and selling a physical product. By being able to see when you can expect to break even and become profitable, you can determine how quickly to scale up and when/if to seek investment. For those just getting started, find a fractional CFO service such as Amplifi Capital to help you determine if and when your business will be profitable before you sink a bunch of money into development.
Finally, test your concept as soon as possible, on the smallest scale feasible, to get valuable feedback. Find out early if your target consumer aligns with your product or service. Some creative ways to do this might include a simple website landing page that highlights your product and collects the email addresses of those that are interested. I had a product website up for Norma’s for a year before the product has become available. Instead of being able to purchase the product, visitors to the website can input their email to be notified when the product will become available. I had a substantial list of consumers ready to purchase the first product available!
Often when people think of a new idea, they dismiss it saying someone else must have thought of it before. How would you recommend that someone go about researching whether or not their idea has already been created?
First of all, the competition is good! There is usually room for more than one product or service within a category, and multiples can often elevate the category overall for everyone’s benefit. If it is an idea that is extremely unique and potentially patent protected, you can do quick patent searches online through the US Trademark and Patent website, or work with a patent lawyer to determine if something existing will prevent your product or service from thriving. It is also useful to share your idea with trusted connections within the industry that you are targeting. Experts already within the industry or your network can help connect you to others doing something similar or can help validate that your idea fills a gap or need.
For the benefit of our readers, can you outline the steps one has to go through, from when they think of the idea, until it finally lands in a customer’s hands? In particular, we’d love to hear about how to file a patent, how to source a good manufacturer, and how to find a retailer to distribute it.
Some of the followings are needed steps, and some are just advice to set things up for ease down the road.
Form an entity, find a CPA, get an Employer Identification Number (EIN), and set up a business bank account — Create a legal separation from your personal funds from the beginning. There is a lot of information on the web available on which type of entity to choose or find a reputable CPA or business attorney that can walk you through the pros and cons of an LLC vs a corporation, etc., as well as how to get everything registered and get your EIN. Once you have the entity created and set up with the IRS, open your business bank accounts. This allows you to easier track investments and revenue from the business or product and also creates a layer of protection between you and your business. I found the step-by-step advice of Mike Michalowicz in Profit First to be the most helpful in how to organize your accounts at the beginning for long-term success.
Conduct a patent search — You can see if your idea or product already exists and if it is protected by doing a quick patent search. While you can easily find a patent lawyer to walk you through the entire process, you can save yourself a bit of money by doing some of the search work before you hire out. The US Patent and Trademark Office (USPTO) has an easy-to-use search function that allows you to search for your concept and similar concepts across a variety of classes. If it looks like something already exists that competes with your idea, reach out to a patent lawyer to verify if your idea would infringe upon the existing patent or if they can co-exist.
Develop a prototype to test proof of concept– New ideas can sometimes be difficult to explain in words or drawings alone, but if you can SHOW your idea so that people can touch or taste it, they are more likely to get on board. Further, test the concept by showing the prototype and idea to as many people as possible and be receptive to initial feedback. Don’t fall in love with every detail of the concept as it is initially developed because input from a variety of sources can help take the concept or product to the next level. At the same time, don’t keep changing things based on anyone’s feedback. Not everyone will love it or understand it, and that information can help just as much as positive feedback to refine your target audience.
Search for contract manufacturers and talk to as many as possible- The best place to start to find manufacturers that can make your product is often industry organizations. National organizations such as the National Confectionery Association have databases on their members, including manufacturers. They often can help provide you with a list or point you to the most promising manufacturer based on your concept. Don’t just go with the first manufacturer that you speak with, but instead get feedback, quotes, minimum order quantities, slotting fees, and lead times from multiple options. Ask if they offer services such as R&D, packaging development, or even distribution. Are they able or willing to customize their process at all, or does your product need to fit within certain tight parameters? This is another instance where consultants can help navigate and translate the manufacturing process.
Set up bar code — If your product is going to go into retail, it has to have a way to be tracked and scanned for purchase. The organization, GS1, has created standards for this process and the barcode database used across the globe. They offer a variety of services and training beyond the registration and creation of the barcode graphic to go on your packaging.
Develop packaging and create prototypes/mockups for retailers — Retailers will want to know how the product will look on their shelves. Thanks to developments in digitally printed packaging, you can often create a few pieces of your packaging at reasonable prices.
Start local to find retailers — Get traction and feedback on your product by starting in local stores vs large retail chains. This will keep your shipping and distribution costs down in the beginning until you scale into mass retail distribution. If developing a food product, there are a few great resources available that provide training, courses, or consulting in getting your product onto retail shelves. I recommend Retail Ready with Allison Ball and Rodeo CPG.
What are your “5 Things I Wish Someone Told Me When I First Started Leading My Company” and why?
· It won’t look the way you think it will — Even if someone had told me this, I probably was too stubborn to believe them or believed I would prove them wrong. In that case, I’ve been humbled. I have planned out both Sprinkk and Norma’s many different ways and set ambitious timelines and goals from the beginning. As I go back and look at the goals that were drafted in 2019 and early 2020, they somewhat resemble where we are now, but certainly don’t fully align. I now believe in setting BIG goals and realistically seeing just how close we can come. For example, one of my goals was to open a full-fledged manufacturing facility by 2021. In reality, I probably knew that was a far stretch, but if I hadn’t set that as a target, we might not be opening the facility that we are opening in 2022.
· It will be lonely — Starting a business on your own can be lonely in general due to owning every responsibility from strategy and funding to ordering printer ink and taking out the trash, but starting a business right before a global pandemic really stepped on the social interactions. I really valued casual office interactions with my corporate teams in the past, getting to work with a variety of different people. I knew the first few months of creating Sprinkk would involve a lot of time with my head down developing strategy and structure, but not being able to have coffee shop meet-ups or connect with industry colleagues in person took a toll on me personally. However, one of many benefits of moving to Nebraska is that I was able to spend that first year with a lot of families to offset the workplace isolation.
· It will take longer than you think, add in buffer time– Things just take time. I tend to be a time optimist…thinking that a lot can get done in a very short amount of time, and sometimes it can! But more commonly, things take longer than anticipated. It turns out that lead times on stainless steel and manufacturing equipment are not quick, small startup companies aren’t always prioritized by suppliers, and there is always a chance of major supply chain disruptions!
· Screen the people that you work with early on and get things in writing…always. — I tend to believe that everyone has my best interests at heart and equal work ethic until they show that they don’t. This has burned me a few times when I trusted people that didn’t deserve it or paid people earlier than I should have. Make sure that you get contracts in writing, and don’t be afraid to reference them. Particularly as a female, the art of doing business well and being perceived as kind doesn’t mean you have to be a push-over.
· You need 2 years of tax returns to get a mortgage– This is certainly more of a unique personal situation. But no one warned me, and I didn’t even think to research, that quitting a job, starting a business, and moving to a new state all within the same month could be challenging! It was news to me that in order for a lender to believe in you and your business enough to give you a mortgage, you have to have two years of tax returns in said new business…regardless of the funds available. That lesson was maybe learned the hard way, but learned a lot about creativity in an already tough housing market!
Let’s imagine that a reader reading this interview has an idea for a product that they would like to invent. What are the first few steps that you would recommend that they take?
Find the simplest way to create a physical representation and test the idea. If it is a food product, find someone to make a sample that would represent what it might look like in production. This is different than just making it up in your kitchen. Large-scale manufacturing processes often have strict parameters, and the scale-up process can change the characteristics of the finished product. Know what your “must-have” characteristics are for the product and what you will be willing to flex on. Working with experienced product developers can help expedite this process and also connect you with potential contract manufacturers. If the product is something physical but not food like a tool or a part of some sort, find a way to either 3D print, CNC, or cast a mockup. Connections with machinists or like-minded individuals that can make things from the ground up are so valuable. We create things daily in our lab for our candy customers, and we also utilize a network of other creators for things beyond candy. Developing a network of various doers and creators helps set you up for success when things come up that aren’t in your own wheelhouse.
There are many invention development consultants. Would you recommend that a person with a new idea hire such a consultant, or should they try to strike out on their own?
I always appreciate some self-effort and also respect those that know when to ask for help. As a consultant in the candy industry, I’m slightly biased toward utilizing experienced consultants. The right ones are well connected within the industry and can help expedite the development process, avoiding common pitfalls along the way, or help you fail and pivot faster. I have had multiple clients tell me that they wish they would have just reached out to us in the beginning instead of trying to struggle through the process. Candy, in particular, is very technical chemistry and manufacturing process control. Working with experts can help you understand WHY things work or don’t work a particular way which makes it easier to troubleshoot challenges that will come up as you scale.
What are your thoughts about bootstrapping vs looking for venture capital? What is the best way to decide if you should do either one?
I am currently at the level of this decision for myself! I am still the type of person to love a good challenge and like to try to prove the bootstrapping method, BUT venture capital can also be a needed springboard to get over some hurdles of scale and manufacturing. If time is of the essence, utilizing venture capital is helpful to able to capture the opportunity when it is presented. If there is a low risk of someone else capturing your target market share, bootstrapping can be rewarding in its own way.
Ok. We are nearly done. Here are our final questions. How have you used your success to make the world a better place?
In the simplest form, my success in the candy industry is used to create more joy. That can sound disconnected, but candy is one of the most affordable and accessible ways to share joy. The products that I develop have the potential to initiate positive memories in people of all ages, races, and socioeconomic statuses. Becoming an expert in candy science also allows me to calmly and confidently help my clients develop new opportunities and experiences for them as business leaders, which ultimately leads to more people making products that also bring joy to the end consumer. I like to think of it as compounding joy with every project that we do.
You are an inspiration to a great many people. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.
I would love to inspire a movement of transparency in the food supply chain with the launch of products like Norma’s. Food labels can often be confusing to consumers, and some ingredients develop poor reputations without justification. I think it is important for consumers to be able to access information about products, and ingredients easily, and understand where all of the components come from and why they are used. We have come a long way in ingredient traceability within manufacturing networks, but this information is rarely available to consumers. This is sometimes necessary in order to maintain trade secrets on unique products or processes, but there is also a lot more information and education that can be shared with consumers that we haven’t yet reached. We’ve been working on ways that test this idea at www.normas.com where we explain each ingredient and what its purpose is in everyday terms. Our goal is to eventually be able to allow consumers to trace ingredients back as close to the source as possible, bringing the concept of farm to table to more consumer-packaged foods.
We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US, with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.
Sara Blakely. I love her bootstrapped startup story and the pure grit that she displayed in creating Spanx early on. At the same time, I admire that she doesn’t seem to take herself too seriously, and she brings others up around her, especially women. On top of building a successful product line, company, and culture, she also appears to value being a wife, mother, and friend. That, to me, is a combo of heroic achievement!
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
Making Something From Nothing: Tessa Porter Of Sprinkk On How To Go From Idea To Launch was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.
