Entrepreneur Spotlight

 

Rachael Herrscher and Stephanie Peterson

Founders of Todaysmama.com

By Matthew Gardner

 

With technological advancements have come increased opportunities for home businesses. At the forefront of this new wave are entrepreneurial stay-at-home mothers.

In May of 2004, Rachael Herrscher and Stephanie Peterson, two business-savvy homemakers, were pushing their strollers through a shopping center discussing how they could get more information about a Mom-n-tots swimming class. This led to a discussion about the need for a centralized source of information about family activities in Utah.

Within six months, the two women had published a book titled "The Utah Mama's Handbook" which included detailed listings of activities in Utah for mothers and their families. The book also included a club card that could be used for discounts. Two months after the book was released, the two entrepreneurs had offers to franchise their business to other states. Now, Seattle, Houston, Phoenix, Washington D.C., Las Vegas, and San Diego all have their own "Mama" handbooks.

In their first year of business, Herrscher and Peterson made a profit of $250,000. Realizing that their business had the potential to grow in different areas, the two women formed a new Web site and company, www.supportyourlocalmama.com. This site helps stay-at-home mothers who own their own business sell their homemade products online.

Supportyourlocalmama.com was another hit. Herrscher and Peterson decided to merge their two companies into one and Todaysmama.com was formed. Not only does their new Web site contain both businesses, it also features an online magazine.

Muffy Mead-Ferro, author of "Confessions of a Slacker Mom," and Emily Falconbridge, famous in the scrap-booking world, are both writers for this magazine. Herrscher and Peterson recently announced a nonprofit partnership with KIVA (www.kiva.org), through which they will be issuing micro loans to mothers in developing counties to expand their own businesses.

Not content to rest on their laurels, the women continue to make plans for expansion with dreams of someday being the most important online site for moms.

They have received funding from a private investor who paid to re-launch their Web site and is helping the women take their business to the nation. Last month, the entrepreneurs went on a press tour in New York meeting with Forbes, Working Mothers, The New York Times and representatives from "The View."

 

Launch met with Herrscher and Peterson to find out the secrets to their success.

Launch: How are you able to balance your work and family life?

Rachael: My husband is an entrepreneur as well, which gives us greater control over our schedules, but it's still crazy. Between my husband and me, our kids always have one of us at home. It always feels like we are there with our family, and that is our goal. Right now, while I am talking to you, my husband is at home watching the kids, making them breakfast. When I am done with this interview, I'll go home and he will take off for his appointments for the day.

Stephanie: It's a balancing act for sure. Being a mother and trying to juggle it all can get pretty stressful. But I am learning how to handle it. I have to take it hour by hour and know that I am doing the best I can with all the responsibility I have. I try to be a well-rounded person, but when you are running your own business something has to give. I have to give up running and training for marathon at this time and know that I'll be able to pick it up again.

Launch: You recently received a round of funding. Did it take away some of the stress or add more to it?

Rachael: We are two stay-at-home mothers and we needed to stay true to that, so we realized that we needed to give off some of the responsibilities to other hands. Now, we have a Web master, a business development person who works with our franchisees, in-house PR and marketing and a bookkeeper, all of which is huge. We feel like a real business now. For a while I was the janitor and the CEO, but with my lifestyle I couldn't afford to do that anymore. Still, it was really hard for me to let go. It was kind of like handing away a child to someone else. Now I look at the business, and it has turned into a real machine. It's killer. Now, we are able to focus so much more on the big picture and what really matters. Also, we're expanding our business model and gearing up for more press in the coming months, and now we're better able to prepare for that.

Stephanie: It has removed some pressures and added others. It creates a new set of expectations and requirements to perform financially. It's a great opportunity to grow and we are learning so much through having a quality investor.

Launch: Do you think it's easier for you as stay-at-home mothers to start a business than, let's say, your husbands?

Rachael: Yes, sometimes married "mompreneurs" can do things that a lot of "husband" entrepreneurs can't do. For example, we can often afford to let our companies grow until we can take a substantial paycheck. Married mompreneurs are able to supplement their incomes, without having the burden of the entire financial support of the family on our shoulders. Also, because of the Internet, e-mail, blogs, instant messaging and cell phones, I can do so much while my kids are taking a nap or at pre-school. Technology is changing the way people do business. The fact that I have my Mac at home and can also work with our publicist, printers and franchisees from home is remarkable. It enables people to do so much more in so much less time from so many different locations than we could even a few years ago. In many ways, technology allows stay-at-home mothers to be attentive parents and still pursue a meaningful career. I read a statistic that said of the moms who decide to leave corporate America and stay with their kids, 40 percent of those women will start their own business - and in Utah, I think women are starting more businesses then men are.

Launch: Do you think the business market will soon change?

Rachael: Yes, there are woman who come out of Harvard who go into corporate America and say that they want to go home and be with their families, and they want their bosses to give them the flexibility they need. I know a woman who works for CBS in Washington D.C., who convinced the network to outsource its marketing department to her house so she could stay home with her kids. I am sure that ruffled the people's feathers that work for CBS from 9 to 5. I know another woman who generates $4 million a year by selling antiques on eBay. This lady's business started from a room in her house. Now look at it.

Launch: What advice do you have for people who want to follow in your footsteps?

Rachael: When you meet resistance, stop. Everyone thinks that you should barrel through it. I disagree. Resistance is often a signal that is telling you that you need to take a step back and look at your business plan. You need look at what you're doing wrong and reposition yourself. When we met resistance from investors, we realized that there was something we needed to change in our business model. I feel that business is a natural flow. Also, getting the right investor is absolutely critical to a successful business; it's important to have an investor who shares your vision and is compatible with the culture and direction of your company. Without that, you will not like what you do. Luckily, we were able to find the right investor for us.

Stephanie: Make sure you think everything through. You might think you have a passion for something, but running a business is hard and you need to love it. Another thing, if you find yourself doing all the accounting work and you hate it, it would be smart to hire someone else to do that so you can focus on doing what you love. It is also important to follow the normal business procedures. For example, having a great business plan, being organized, and being financially aware of your business.