How Mathematics Can Be The Winning Strategy for a Fast-Growing Company

REALITY IS A SOUND STRATEGY

When D’Shawn Russell left her job as a school math teacher to start Southern Elegance Candles, she never imagined that it would grow into the far-reaching, highly respected company it is today. Back in 2016 when she first started her business earned $250,000 the first year, $1,000,000 the next, and $2,000,000 the year after that. With revenue growing by 494% over the past two years, Southern Elegance Candles earned 25th place on 2022 Inc. 5000 Regionals Mid-Atlantic list, exceeding the average annual growth rate of the listed companies by 86% annually. The company is routinely featured on Good Morning America, and PayPal filmed a segment on them for their Youtube channel. It is clear Russell’s leadership has created a vibrant, successful business. The question is how a math teacher with zero industry experience built such an incredible empire of wax, wicks, and fragrances. According to her, the secret is to have reasonable expectations and realistic plans to enact them. Although this logic permeates every aspect of her business, it is particularly distinct in regards to growth, customer interaction, and personal introspection.

SLOW AND STEADY WINS THE RACE

Despite the incredible growth rate that Southern Elegance Candles has achieved, Russell developed sound and manageable objectives for expansion, with a stringent focus on sustainability, scaling, and branding.

“I have seen. I don’t think, I have seen companies grow exponentially, and then implode, because that didn’t adequately plan for that growth.”

Her quote illustrates firsthand knowledge of how uncontrolled growth can cripple a company. Running a company day to day, let alone growing it, requires massive amounts of capital. Some people seek outside money to pay for these endeavors, such as crowdfunding, investors, or even vehicles like “Shark Tank”. While these resources can be useful, they can be temporary or fleeting. A company must be able to stand on its own. This is why Russell focuses on sustainability fundamentals, such as day-to-day profitability.

Her long-term goals are to hit income milestones and stabilize her footing before trying to scale again, such as reaching and holding at $5,000,000 in annual revenue for a few years, before pushing towards $10,000,000. Utilizing her math teacher background, she has calculated all her processes to focus on larger and larger batches. This makes Southern Elegance Candles well suited for expanding beyond its DTC origins, with the inventory necessary to supply established boutiques, as well as mom-and-pop shops. Originally, Russell determined that these bigger clients would be too big to handle and pursuing them would only be done once Southern Elegance Candles had the adequate infrastructure and raw materials in place. The massive volume of sales was made possible by the superb brand that Russell established, which she did through thoughtful consideration and a firm understanding of her own strengths. Fully embracing the charm and hospitality of the traditional South, which Russell herself embodies with her history, personality, and values, gave her company the friendly and familiar authenticity that attracts and keeps customers. Utilizing Mason Jars for packaging, stark black and white labels, as well as structured font has created products that stand out on the shelves, especially in a sea of generic, unremarkable competitors. Her careful assessment also affected the contents inside the jars. Familiar and pleasant scents, like pine and apple, are accented with other unique, distinct aromas, such as bourbon or champagne. The complete package provides customers with a candle that is simultaneously simple and sophisticated, with a subtle grace that has yet to be matched on the market.

A LITTLE HUMANITY GOES A LONG WAY

The branding also feeds into the broader customer experience. This is another field that Russell excels in, by using her tried and true method of realistic goal setting and planning. The concept of Southern hospitality is exercised in her customer service. Russell will often answer customer calls herself, with the caring respect of an authentic Southern Belle. Customers are referred to as ma’am or sir, and genuine concern over their issues is conveyed. The company also conducts intensive outreach with its clients, utilizing every social media platform available. Russell acknowledges the power that the internet has provided to entrepreneurs, stating

“I have seen the most ridiculous things being sold on the internet, but the key is, it is being sold to the people that want to buy the thing.”

Her calculated approach to increasing customer involvement materialized in the form of promotion calendars and surveys asking for input on scent selection and packaging design. These activities make people feel involved with the company’s development. Aside from the excellent service and courtesy, Russell ensures the product itself physically resonates with each consumer on a personal level. The smell is the strongest sense at invoking memories, a fact she capitalizes upon to the best extent possible. One example she gave was,

“You might smell the notes of the bourbon and think about your grandfather.”

Developing this relationship between the consumers and the products is a huge reason Russell has built the loyal base that she has. The combination of appealing candles and the sense of family that she has meticulously created at Southern Elegance Candles is what enables her to develop a genuine human connection.

“KNOW THYSELF” - SUN TZU (ART OF WAR)

Forming a strong bond with complete strangers, using nothing but honest analysis, a product and marketing strategy is something that can only be done when that same analysis is applied inward. As Russell said,

“Before you start a business. I don’t care what industry it is. Make sure you talk to someone who is authentic in that business. So that they can give you a real picture of what you are about to get into.”

Many entrepreneurs taut their previous successes and future plans. Some will discuss the incredible hardships they have faced and the sheer willpower necessary to keep going. However, not many talk about the unexpected impacts on their personal lives.

“I have seen the toll that it takes on families. I’ve seen the toll that it takes on marriage, and I’ve seen the toll that it takes on every relationship around you.”

Russell said that if she knew what her business would do to her life, she probably would’ve kept teaching math to children. It devastated her marriage. One day she was so exhausted, she passed out on the production room floor, only to keep working once she regained consciousness. Stress and hardships are almost guaranteed for anyone starting a business. It is imperative for each of them to understand their own attributes and how they should react when the unexpected happens. During this very interview, Russell was dealing with Instagram shutting down her account, due to a fraudulent copyright claim. Her Instagram account is her primary social media profile, where all her other internet-based resources pull information. This crippled her entire marketing and customer outreach arm for her company. Anyone could understand if she would be in a state of panic, or at the very least postpone the interview. However, this was just one of the countless issues she has faced and overcome during the course of running Southern Elegance Candles. Russell mentioned that 2022 has been the most difficult year she has ever faced. This is despite the immense growth the company has seen, as well as surviving the dreaded first year in business when most startups fail. She said that when bad things happen, she allows herself a moment to react, whether it is to cry, scream, or throw something against the wall. Once this has passed, it is then time to develop courses of action and follow through on the one with the best outcome. Russell’s introspection helped to lay the groundwork for Southern Elegance Candles to weather the numerous storms it has and will face.

HONESTY REALLY IS THE BEST POLICY

Although Russell’s approach to growth, customer experience, and self-assessment is logical and calculated, it is driven by authenticity and sincerity. In her interview, Russell mentioned that she appreciates the various accolades and recognition her business has received. However, earning these things is not her end goal and she does not want them to define who she is. These things come naturally from running a successful business, with an earnest desire to serve and enrich the lives of her customers. If entrepreneurs are honest about their goals, honest with their customers, and honest with themselves, they can create a product and business that will earn the type of success that receives the recognition that Southern Elegance Candles enjoys.