Natural fit | A conversation with Zakk Maher, CFO of Square Root Natural Foods
Photo/Courtesy Zakk Maher
Zakk Maher and Emmy Andersson
Square Root Natural Foods
Founded: 2009, store opened in March 2010
Employees: 2
Startup costs: $115,000
Projected revenue, year one: $150,000
Projected revenue, year two: $250,000
Contact: 998-3484
1399 Maine St., Poland 04274
www.SquareRootNaturalFoods.com
What is Square Root Natural Foods?
Square Root is a 2,000-square-foot specialty foods store. We focus on Maine-made or -raised produce and products, but carry a full range of natural/organic grocery items. We also carry bulk foods and spices; beer- and wine-making supplies; locally made crafts; as well as a select stock of fine wine and beer.
Why did you start the company?
Good food has always been our primary focus. After college, Emmy, my wife, and I started Valhalla Fields Farm where we raise organic produce, lamb and pork. During this time, Emmy also worked in a natural food store. So in 2009, when she started her master’s degree work in sustainable business, we decided to focus all our efforts, and her entire education, on the creation of something that will not just be beneficial to us as entrepreneurs, but to the environment and to the community that we live in.
How do you market the company?
We knew from the onset that we needed to find a base quickly, and keep them happy to start the ever important word-of-mouth promotion. We ran commercials on WPXT our first summer, purchased ads and enjoyed feature articles in every newspaper in the area. We also spun some radio ads during high school sports that fall.
More importantly, we teamed up with local organizations to start some nonprofit fundraisers. Most notably, we donated 50% of the proceeds from our grand opening to the Ricker Memorial Library here in Poland and 25% of proceeds from our Christmas Shop-a-Thon went to the senior class at Poland Regional High School for Project Graduation. We believe this was much more advantageous than any print or media advertising. It rapidly targeted specific markets that we knew would become our base, and told the people of the town that we are not just here to peddle wares, but here to become a part of the community, so the more they support us the more we can give back to them in the long run.
How do you finance the company?
More than 50% of the startup financing was our personal investment. The rest came from either a private bank loan, or a loan we received from Community Concepts Finance Corp. to help us cover some operating expenses.
What has been your biggest challenge?
The hardest part of starting Square Root has been keeping a good hold on the reins. Emmy and I have a lot of ambition. There are products and services we want to offer and organizations we really want to support. But keeping the bottom line in mind will keep us afloat. Sometimes the only way to do that is to keep saying to yourself “someday, someday.” Until then, you run it like someone else owns it.
What has been successful about your business strategy?
We have three things that seem to be working to our advantage, though I believe all of them stem from simply doing the proper research beforehand. They are product, placement and patience.
We knew from our market research that we were getting in on the ground floor when it came to the growing natural foods trend. We believe in our products, their quality and health benefits, and it seems like every day we see new customers who have just come to the same realization.
We chose Poland not just because it is my hometown, but because our research found positive traffic studies, above average median education and income levels (which correspond to the average “green consumer”) and a town that is actively pursuing community and economic development in a sustainable manner.
As far as patience, everyone says it takes three years. Everyone says we are crazy for starting in this economy. And we knew both to be true. The business is still day to day, and week to week. But we have found a sustainable pace for growth and development and have, with the help of our base clientele, managed to self-finance our way through the first year of operation.
What are your goals for your company?
We make no excuses for the fact that our No. 1 short-term goal is to turn a profit. Beyond that we are striving to create an entity that has the financial stability and heart to focus on the triple-bottom line.
Interview by Carol Coultas
New Ventures profiles young businesses, 6-18 months old. Send suggestions and contact information to editorial@mainebiz.biz.
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