In this episode we’re chatting with Kailey from Sacred Serve and there’s some serious hustle in this story!
Her first 2 years were spent doing hundreds of local events and making the product herself....
We hear her tactical tips when it comes to labelling and also chat about why it’s important to talk about your exit strategy - especially as women.
Sacred Serve is a plant-powered line of gelato bringing function into the frozen aisle. Made from a base of certified organic young Thai coconut meat combined with potent superfoods, adaptogenic herbs, medicinal mushrooms and just a hint of low-glycemic coconut sugar, this gelato is rich, creamy, and packed with plant-based nutrition.
When you’re building a business from scratch, it’s easy to get caught up in the hustle and forget about the long game. Kailey Donewald, founder of Sacred Serve, knows this all too well. With a plant-based gelato line that’s all about functional ingredients and high-quality nutrition, she’s not just out to make a splash in the frozen aisle—she’s also planning for her eventual exit. Here’s why Kailey thinks it’s crucial for women to have conversations about exit strategies and how that mindset has shaped her approach to building Sacred Serve.
Embracing the Idea of an Exit
Kailey is upfront about her intentions: she started Sacred Serve with the goal of eventually selling the company. For her, it’s not just about the mission or the passion, but also about making a substantial profit from all the hard work. “I’m in this to make a lot of money, for myself, for working so hard,” she shares. And why shouldn’t she be? Yet, this kind of conversation can feel taboo, especially for women. The reality is, being clear about your financial goals isn’t something to be ashamed of. It’s smart business.
The Early Grind: Getting Hands-On and Learning the Industry
The first two years of Sacred Serve were all about the grind—Kailey was making the product herself and doing hundreds of local events. These early days were a crash course in everything from labeling to logistics. “It’s a very challenging business, so it’s really important to know why you’re doing it and stay really true to that,” she says. Kailey quickly learned to be capital-efficient and not to overinvest in anything early on, as tweaks to the product and brand are inevitable.
Know Your Numbers: Setting a Clear Goal for Your Exit
Kailey’s journey also came with some valuable advice from an advisor: have a concrete number in mind. Knowing exactly how much you want to walk away with is essential if you’re going to achieve it. Without that goal, you risk getting caught up in the daily hustle and losing sight of your bigger objectives. This is something Kailey has kept top of mind as she grows Sacred Serve and raises capital. She understands that to make the kind of revenue numbers that are attractive for a sale, the company needs to reach a certain scale—and that takes funding.
The Importance of Being Capital Efficient
Knowing that an exit was on the horizon helped Kailey make smart decisions about capital. She took her time before bringing on investors, ensuring she was clear about what she wanted to achieve with the funds. This capital-efficient approach meant that when the time came to close a seed round, Sacred Serve’s margins were strong, and the company was already operating with profitability in mind, albeit with a growth-oriented focus. “Food is very capital intensive, and a frozen product makes the supply chain that much more expensive,” she explains. It’s not about throwing money at every problem but making strategic choices that will position the company for long-term success.
Exploring Different Exit Routes
When it comes to exiting, Kailey points out that there are more options than just a massive buyout by a big-name company like Unilever. Depending on your business model and how long you want to stay involved, several paths could lead to a successful exit. For example:
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Early Stage Acquisition: Sometimes, a co-packer—someone who helps manufacture your product—could be interested in acquiring your business early on. It’s a less traditional route, but it’s worth considering, especially if your operations are heavily tied to a particular manufacturing process.
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Private Equity: Partnering with a private equity group can be a great way to scale your business to the next level. It’s about bringing in expertise and resources that can help grow the company significantly, making it more attractive to future buyers.
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Strategic Sale: This is the more conventional path of selling to a larger company in the same industry. While it’s often seen as the ultimate goal, Kailey notes that it’s not the only option—and it’s not always about reaching that magical $100 million valuation.
Why Women Need to Talk More About Their Exit Plans
There’s a stigma around openly talking about wanting to make money and exit a business, especially for women. But Kailey is here to change that narrative. “Sometimes women feel bad for starting something for the mission,” she says. “I love the mission—it’s everything I believe in—but who works this hard for no reason?” Being honest about wanting to profit from your hard work doesn’t make you any less passionate about your company’s values. If anything, it’s a sign that you’re thinking strategically and positioning your business for long-term success.
Staying True to the Mission While Planning for the Future
Sacred Serve isn’t just about Kailey’s exit strategy; it’s about delivering a high-quality product that consumers will value. Her gelato is made from a base of young Thai coconut meat combined with superfoods, adaptogenic herbs, and low-glycemic coconut sugar. This kind of quality doesn’t come cheap, but Kailey believes consumers are willing to pay for it when they understand the benefits. “Consumers will really pay for that when they see the quality there,” she says.
By staying true to the brand’s mission while also keeping an eye on the bigger picture, Kailey is setting Sacred Serve up for long-term growth—and eventually, a successful exit. It’s all about balancing the passion with practicality and remembering that while the mission is important, so is the payday.
The Takeaway: Think Big and Plan Ahead
Kailey’s story is a reminder that it’s okay—necessary even—to talk about money and exit strategies. Whether you’re just starting out or already scaling, having a clear goal can guide your decisions and set you up for the success you’ve always dreamed of. And remember, there are multiple paths to achieving that dream. So, go ahead and embrace the hustle, think big, and plan ahead. It’s your business, your mission, and ultimately, your exit.