Building, Scaling, and Selling: Lessons from Julie Ellis of Mabel's Labels

Recently, I had the pleasure of sitting down with Julie Ellis (she/her) , co-founder of Mabel’s Labels, for a conversation that left me inspired and with a lot to think about. Julie's journey from the corporate world to building an eight-figure business and eventually selling it is nothing short of remarkable. Our discussion covered everything from navigating partnerships to the intensity of due diligence, and I wanted to share some of the key insights I gained.

The Power of Partnerships

One of the first things that struck me was how Julie and her three co-founders managed to navigate the complexities of a partnership. It’s no secret that working with others, especially in a business setting, can be challenging. But Julie explained how they made it work by clearly dividing responsibilities and maintaining open communication.

She shared, “We had this rhythm where we would kind of go away and come back with answers or more questions or next steps. And then we would agree on direction and off we would go.” This approach allowed them to stay nimble and make quick decisions, which was crucial for their success in a competitive market.

Another key to their successful partnership was having a shareholders agreement in place early on. This helped them avoid potential conflicts and ensured that everyone was on the same page as the business grew and evolved.

Moving Fast and Staying Ahead

Julie emphasized the importance of speed in business, particularly when you’re first to market. Mabel’s Labels was the first children’s label brand in North America, and they knew they had to move quickly to stay ahead of the competition.

“We were first to market in North America as a children's label brand, and we were often very worried. Our first competitor entered the market eight months after us… So we were, some of it was, you know, a little bit of fear and a little bit of, you know, trying to stay ahead of that,” she said.

Julie’s story serves as a reminder that when you’re breaking new ground, you can’t afford to be complacent. You need to be constantly innovating and pushing forward, even if it means working long hours and making sacrifices along the way.

The Emotional Transition of Selling a Business

Selling a business is often seen as the ultimate goal for entrepreneurs, but Julie’s experience highlighted the emotional complexity of this process. The decision to sell Mabel’s Labels wasn’t initially on their roadmap, but when the right offer came along, they decided to pursue it.

The due diligence process was intense and demanding, requiring meticulous attention to detail. Julie noted, “It was hard. It was 12-hour days and then some, some days. It was a constant, you know, talking to people, communicating, generating of reports, giving more and more and more information. It was a lot of work, but it was doable because we were well prepared.”

What stood out to me was how Julie and her co-founders handled the transition post-sale. While one founder chose to leave, Julie initially stayed on but quickly realized it wasn’t where she wanted to be. “I very quickly kind of felt, you know, I was a fish out of water… and ultimately I decided that it would be the right time for me to go,” she reflected.

This part of Julie’s journey serves as a powerful reminder that knowing when to step away is just as important as knowing when to push forward. After all, the sale of a business isn’t just a financial transaction—it’s a significant emotional milestone.

Top 3 Takeaways

1. Clear Roles and Open Communication Are Key: Whether you’re working with one partner or several, establishing clear roles and maintaining open lines of communication can prevent many potential conflicts and ensure that everyone is working towards the same goals.
2. Move Fast, but Stay Grounded: Being first to market gives you an edge, but you have to keep innovating and moving forward to maintain that advantage. At the same time, it’s important to stay grounded and not let the pressure of competition cloud your judgment.
3. Prepare Emotionally for the Sale: Selling a business is not just a financial decision; it’s an emotional one too. Be prepared for the intensity of the process and know that it’s okay to step away when the time is right.

Talking with Julie was like receiving a masterclass in entrepreneurship. Her story is a testament to the power of intentionality, strategic thinking, and the courage to let go when it’s time to move on. I hope you find these insights as valuable as I did. Remember, the real bottom line is to be intentional and deliberate about where you want to take your business.