Business #23…Lärabar: Lara Merriken
Denver, Colorado
720.945.1155
Start Date: April 2003
Every now and again you hear of an amazing story of triumph and success. The following story in a fabulous example of the entrepreneurial dream: have an idea, start a company, grow a company, and sell a company. All while loving what you do, and all within 5 years. Lärabar is the true American Dream. All started by Lara Merriken while on a hike in the Rocky Mountains.
Lara was on a hike one day, and realized that it would be nice to have something to snack on. The problem was there wasn’t anything she could buy that was super portable and natural. Lara had started a lifestyle that included eating right, and being active. She didn’t just do it to stay fit and trim, she did it because it was a way of life; a lifestyle of feeding her body, a love for exercise, and a passion for staying healthy. Then it hit her – she should try to make something herself that was portable and healthy that she could take with her. Off to the kitchen!
When she went home, she got out her food processor, and started to experiment with different fruits and nuts. How did they combine? How did it taste? Could she get it to stay together? Her inspiration came from cookies and pies, but wanted to keep it healthy…no sugars, no preservatives…NOTHING but good stuff. Then she would try her creations on her friends for feedback.
Lara thought it might be fun to learn about natural foods and the industry, so Lara got a job at Whole Foods. She worked at Whole Foods for two and half years while she learned how to make her creation, and how the industry worked. She was so successful in her position that she at one point almost decided to stay on and forget about her dream to create a product.
It all started in Lara’s 500 sq. ft. duplex. The problem with selling a food product however, is that it must be made in a commercial kitchen. Once she figured out what to make, she had to decide on how to make it. She could either rent a commercial kitchen, or outsource the production to another company. Lara tried it all. First she found a company to make them, but it was hard to get the right quality and consistency. Then, she bought equipment to make the Lärabar herself. Too much demand created the need to outsource once again, and finally she found a company in Boulder to produce them that was the right fit. The challenge was so great for her because her product required specialized equipment that not every company had.
The good news, and I wish this for all companies, Lärabar was profitable within the FIRST year! Almost unheard of in the food industry. Because Lara and her partners kept their overhead low, and did not get greedy with big salaries, they were able to continue their rapid growth pattern. They actually stayed in the 500 sq. ft. duplex for 4 years, absolutely busting at the seams when they finally moved into a commercial space.
Lara also attributes their early profitability and success to investing in a great logo, branding effort, and marketing. She knew it was imperative for a premium product to also have a premium look.
Loving the whole process, Lara, is one of the most passionate business owners I have spoken with. She loves the challenges, the long hours, the excitement of selling in new stores, but mostly the look on the customer’s face when they would try her bar for the first time. It really has been a labor of love for her. She is so passionate about it because it fits who she is. It is all natural and healthy, something Lara has focused on most of her life. She also comes from a family of entrepreneurs, and always thought she would own her own business, despite the fact that she went to school to be a social worker.
Lara considers her intuition and tenacity to move forward as her biggest business strength. It has served her well as they have taken chances, as well as held back for fear of moving too fast. Her weakness has been in delegation. It has been hard to let go of important aspects of owning her business. The reality is she would not have been as successful if she hadn’t learned how to do this effectively. She had to create a training program to ensure high quality standards, and she had to learn to mentor her team. Lara has been surprised at the whole thing. To think, from just an idea, now millions of people enjoy her bars every year.
I have much more to share with you about the success of Lara and Lärabar. Stay tuned, and I will tell you how she sold her company, who bought it, and what she got paid! Well, maybe not the last part. But there is much more to the story.
Until next time, continue to plan, plant, and grow your business, but don’t forget to harvest!
Nick May
Denver Small Biz Blog 