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A Going Out of Business Success Story

by Donna Maria

Like many small business owners, wife and mother Jen Denslow didn’t know what to expect in 2000 when she launched Blooming Lotus, a natural cosmetics company in Kansas City, Mo. But she did know she had a passion for creating organic skin care designed with the health of humans, animals, and the planet in mind, and this passion eventually formed the foundation for her popular product line.

Nevertheless, the road to long-term business success is filled with twists, turns and surprises, and Jen (pictured above with her family) negotiated one of the biggest of them in January when she announced that she was closing Blooming Lotus for good. Since most every small business owner thinks about chucking it all at some point, I asked Jen to share a little about her decision.

  1. dM: When did you first begin to feel like, as much as you loved your business, it might be time to consider closing it down?

    Jen: I agonized over this decision, as I absolutely love what I do. But the stress was getting to me. My business evolved in a way I’m sure many of your readers can relate to. I was the solopreneur for many years, juggling everything from creative vision and marketing to making sure we had toilet paper. I needed an employee but couldn’t quite afford one. In hindsight, I would have hired an employee much sooner!

  2. dM: What are some of the factors you considered?

    Jen: The stress of handling everything from the big picture to the minutiae of a business, plus balancing motherhood, began to take its toll. About two years ago, I made a visit to the emergency room with heart attack symptoms. The doctors told me I needed to manage my stress and work cardio exercise into my schedule 5 days a week.

    The thing is, I meditate and practice yoga and I eat very well. So the majority of the stress in my life comes from growing the business. I also experience chronic migraines and have some issues with hormone and thyroid balance. When you’re curled up in a ball with a migraine, it really drives the point home: without your health you have nothing.

    It doesn’t matter that I love my work if I can’t be there to do it.

    All of this was very confusing. I promote health and wellness. I have a very healthy lifestyle. Yet good health was eluding me.

    I discussed all of these things extensively with my husband, friends, and business adviser. I received very wise counsel, but only I could make this decision. It was hard. I wanted someone to tell me the right answer. But of course, the right answer is always within your own heart.

  3. dM: When did you make the final decision, and what was that like?

    Jen: I took some time over the 2009 December holiday break to solidify the decision. It is absolutely one of the hardest decisions I have ever made. I love to work!

    My health issues were a major consideration but more importantly, I have an amazing 6-year old son who actually still likes hanging out with me. I want to create a lifestyle where I can spend the maximum amount of time with him while that is still possible.

    I feel it is very important to model a strong work ethic for him. I’m sure I will always struggle with home/work balance. It is the gift and plight of the modern American woman.

    However, I was at a point in my business where we were poised for extraordinary growth. Financially I couldn’t keep things where they were not also sacrifice family dinners to take things to the next level. I have the passion and the drive to do it, but have to realize in the end love is what is real, not the amount of products I sell over my lifetime.

    This sounds good, but it didn’t make me immediately feel better. There is some relief in knowing how much my stress level is going to decrease. I’m so looking forward to more time for my son, my husband, my friends, my community and myself.

    But I have to say this too. There is a definite grieving process. I have sacrificed so much and nurtured this vision for ten years. I am stubborn and I am not a quitter. It has been something to realize that this decision actually takes courage. Something along the lines of if you love something set it free.

    I know I will rebuild something using all the lessons I have learned. But I have to accept that this particular business model does not work for my lifestyle right now.

    I’m really excited about some of the opportunities that are already presenting themselves! I think the typical entrepreneur loves to dream and build, so I’m trying to stay focused on all the tasks at hand. There is a lot of work involved in closing down a business.

  4. dM: How are your customers taking the news?

    Jen: It’s a mixed bag. Some understand, but many just can’t accept it. January 2010 was our best month on record, making the decision even tougher.

    My two favorite aspects of Blooming Lotus are formulating products and interacting with and educating the best clients on the planet. I have enjoyed hundreds of warm, supportive emails, calls and visitors In some ways, it makes it more difficult now that so many people are expressing how important the products are in their lives. I’m certain I will stay in touch with many of these people and they will be along for the next incarnation!

  5. dM: Did you consider selling the business instead of dissolving it?

    Jen: I am considering several options, and am in discussions with a few parties. Options include selling the business in its entirety, or selling it in separate parts like equipment, formulas, brand, website, etc. If one of the interested parties turns out to be a good fit, that would be fantastic. If not, I am just as happy to move forward with life.

    I’d like to see the products and brand live on, but not in a diminished capacity. I am a total ingredient snob and my clients expect authentic, organic formulas with the highest quality ingredients. I would much rather walk away than know someone is going to corrupt the integrity of the products and business. The formulas and brand still have great value for some of my potential future projects.

  6. dM: What were your best selling products through the years?

    Jen: Fairy Mist (now called Euphoria) and the accompanying lotion Fairy Dew, Mandarin Rose Lip Conditioner (pictured above) and Chocolate Rose Body Polish.

  7. dM: Thank you for sharing so authentically, Jen. As a wife, a mother and a busy CEO, I am listening carefully and learning from you. And by the way, I don’t think I’m the only one looking forward to the next “incarnation.” Please keep us posted on your next big adventures and, first and foremost, take care of yourself.

Question: Have you ever closed a business, or considered doing so? What was it like for you? Share your thoughts in the comments below by midnight tonight to enter to win one of the last Blooming Lotus Mandarin Rose Lip Balms!

SPONSOR

Visit Shea Radiance Supplies for natural and organic bulk supplies and shea butter from Africa and beyond. I often use this shea butter to dress my daughter’s beautiful red hair! You may also enjoy this FaceBook photo album from my visit to the Shea Radiance kiosk over the holidays. Check them out and tell Funlayo and her family that Donna Maria sent you!

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Tagged as: blooming lotus, going out of business, jen denslow, moms in business, organics, small business, Success, women in business

posted on March 27, 2010 ·

Facebook comments:

  • susansmithlaycock

    I can relate to your dilemma Jen. My challenge has been to source a contract manufacturer to partner with who can enable me to expand my business and let me concentrate on the part of my business I most enjoy: research, formulation and customer service. I've tried a couple of times and been very disappointed because I couldn't find a company with a matching business model…they always wanted to have me use one of their formulas and add 1/10 of a percent of something to call it 'mine' instead of making MY formula for me. You've made a successful company and you'll be able to do it again when the spirit moves you. You'll be wiser for it, I'm sure. Good luck to you!

  • http://www.sterlingminerals.com/ Katherine@sterlingminerals

    My heart breaks for Jen as I also know what it is like to make a decision to cut something loose after many long years.

    I love people and their pets and for 13 years I provided an all natural holistic pet food to the Idaho territories called Solid Gold, a relatively unknown small company back then. This part of our little world hadn't even heard of this line, and holistic back in the mid 90's was still a fairly new concept. I began retailing it in my little pet kiosk for a year and discovered the hours were grueling in a mall…hated this aspect of it, so I quickly switched gears and decided to move into wholesale and allow other outlets to do my selling for me.

    This worked great, and I grew the business to making really good money. After 6 years the money was outstanding and I was rockin' and rollin'. After about 10 years problems arose within the company, they went from catering to Indie business owners and private coops to requiring me to take care of Petco stores and at a discount. Now I felt like I had entered into corporate America. My business that I had grown and had had complete autonomy was now under attack by headquarters that dictated my direction and required me to even go as far as be the bank for this conglomerate who paid their bills 3 weeks past due.

    I felt my sanity slip and my moods became less than pleasing. It reflected in my work and I no longer enjoyed this great product I once showed support for. Then formulas began to change for a lesser product and prices increased. The founder of this exceptional product line had sold out her principals and she put head distributors over regionals, and ran it with an iron fist making my life no longer my own. Minimums were declared and increased every year. Although I met them hands down, I was now under their micro managing of what was once my business. Hence I was no longer working directly with Solid God but some appointed mouth piece I had no working relationship with. It was then I knew I had to make a change in a new direction.

    That is when I founded Sterling Minerals back in '06 after playing around with my own formulas for some time. I even considered having private label done, but after a few connections with some, I found myself again relying on another to provide me with my own product and play by their rules….and right then swore I would never rely on another to get my main product line of minerals. Hence two years of formulating with many changes occurring…. I did this all in secrecy maintaining Solid Gold to pay for launching my new business right. I entered into my business completely debt free with money to spare in savings. In August of '07 I planned to cut Solid Gold Loose and put all my effort into my new business. However, I had my final battle with a head distributor in March of same year, and I very casually made the decision to cut them loose after 13 years. It was slightly ahead of schedule but once I did, a huge weight lifted off my shoulders and I didn't even realize how much until the words came from my mouth…well then of course the distributor back pedaled and tried to revive a relationship that was slowly eroding over the past several years prior. Calmly I agreed to allow for transition to take place for a new distributor and agreed to maintain the accounts until June of that year. Transition was smooth however they wanted me to take care of two new Petco's that arrived in the valley and I declined telling them they were on their own. My patience and generosity only went so far!

    And now I am happier, I have complete autonomy, control my flow of merchandise and all mineral makeup formulas, and have never regretted my decision, regardless of the money. When something you love sacrifices your health, your sanity and enjoyment of it, then that is when it is time to move on and I believe these are all symptoms of what the good Lord wishes us to keep an eye out for.

    Best wishes to Jen and her family…over time the mourning will stop and you will come out the other side stronger and happier.

    Love

    Katie

  • http://forex-automoney.info/articles/ Automoney

    When my employer closed the business after I had worked for 10 years, it was perhaps just as hard for me the sudden decision. But life goes on and it is better to close early than late.

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Susan: I can understand that frustration. What are your options? Can you use the 1/10 percent option for a short period of time until you can transition to having someone make your formula for you? I'm just asking because if the only other option is not to grow your business, what else can you do? I'm sure you have a creative option in mind that I haven't thought of!

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    Katie! what an awesome story you tell. It's like the chapter in a book (hint, hint)!! The albatross part really resonates with me. I experienced that when I managed my aromatherapy shop. Bricks and mortar retail did not fit my lifestyle at the time and while I loved the work, that particular part of it was strangling me. I had to let it go, and like Jen, I grieved. But it was short-lived because I went on to pursue other things I was far more passionate about.

    I admire how you handle the difficult situation with Solid Gold. Above board, professional and always a lady — I learn so much from you!

  • susansmithlaycock

    Thanks Donna Maria, yes, it might work to approach it like that. But it feels like such a sell out to me. In truth, I feel a bit overwhelmed at the moment as my husband's income has disappeared and I've had to get a job. So now I'm trying to maintain my business as well as work a job. This full time is very temporary, so I am viewing it as 'revving' my engines to gear up for a more intense application of elbow grease in my own business. I've been slowly pulling together all the elements to begin a new push into a wider arena. The trademark issue really has me wondering what road to take as well. I just heard back that USPTO examining atty's have, for the second time reversed their decision to grant me the mark. I have to decide whether to change my name completely and start from scratch or hire someone to appeal to the Board. Sometimes I get the feeling that whether one receives their mark or not has more to do with the whim of the examining atty on a particular day than on a logical argument. Was the atty you suggested I contact the woman who gave the talk on patents and tm's last week? She's an engineer as well, isn't she? I am not sure it's worth the cost but on the other hand I am loath to just chuck 10 years of branding. I kinda want to FIGHT!

  • http://www.indiebusinessblog.com Donna Maria Coles Johnson

    I see your dilemma and know you'll make the best decision for you. I have a few references for you.

    1. Christopher Norton (Wash, DC) has http://www.arentfox.com/people/index.cfm?fa=pro… He’s a has helped other IBN members over the years.

    2. Andrea Hence Evans (DC area) used to work at the US Patent & Trademark office http://evansiplaw.com/

    3. Francine Ward (California) has super references also http://www.francinewardblog.com/

    Please tell any of them that Donna Maria at Indie suggested you contact them.

    I wish you the best and please let me know how things pan out.

  • susansmithlaycock

    Thank you, Donna Maria…I'll contact them and see what's what.

    I greatly appreciate your references.

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