This Mom Used an 'Overlooked' Ingredient to Grow a 6-Figure Side Hustle From Her Kitchen: 'Like an Intensive MBA Program' Kate Banks, 55, received a Christmas gift that inspired her small business.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- More than one-third of U.S. adults have side hustles, and their supplemental gigs make an average of $891 a month, per Bankrate.
- Learn how a Kansas City-based mother turned her passion for baking and cooking into a successful side hustle.
It's the era of the side hustle, and if you've ever considered starting one to earn some extra cash outside of your 9-5, you're in good company. These days, more than one-third of U.S. adults have side hustles, and their supplemental gigs make an average of $891 a month, according to recent research from Bankrate. Of course, the most successful side hustlers see much higher earnings, especially when they start a business that brings in nearly as much as — or significantly more than — their full-time sources of income.
Kate Banks, 55, is one of them. Learn more about how the Kansas City-based entrepreneur started and grew a six-figure side hustle from her kitchen, here.
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Image Credit: Courtesy of Vain Vanilla. Kate Banks.
What was your day job or primary occupation when you started your side hustle?
I worked in healthcare marketing and then for a private holding company before I stayed at home with my triplets, who are now 23.
When did you start your side hustle, and where did you find the inspiration for it?
I started Vain Vanilla in 2015. I'm a lifelong baker and cook, so one Christmas, my mom gave me a sampler pack of vanilla beans grown in various countries. I was intrigued by the idea that we understand that coffee beans or wine grapes grow in different places, but are less familiar with vanilla beans in that way.
The vanilla beans in this pack were different lengths and aromas, so I knew the flavors must be subtly different, as well. My mother had been generous, and with so many vanilla beans, I made vanilla extract as teachers' gifts that spring. A friend told me I could also use other spirits for extraction to impart even more flavor. Our first few bottles were vanillas we still make today: Mexican vanilla extracted in Kentucky bourbon, Tongan vanilla extracted in orange spirits and Tahitian vanilla extracted in cane rum.
We shared some bottles with friends and started baking with them. The flavor boost was really noticeable — that's when I knew I was on to something special.
What were some of the first steps you took to get your side hustle off the ground?
I did some market research on vanilla extract in order to see if we would be unique. My husband has a background in marketing and helped me design our labels. We wanted to stand out on the retail shelf and make it easier for customers to understand the different varieties. I also consulted local food companies to better understand regulations around producing our own products. And, of course, we shared a lot of our vanilla with friends and family.
Are there any free or paid resources that have been especially helpful for you in starting and running this business?
I talked to my local gourmet retailers and asked lots of questions. These store owners have been very generous with advice on everything from packaging to case pack sizes to ideas for new varieties. I have also worked with local makers and friends who still help with social media content and suggestions for good retailers we could sell into.
We also joined a buying group that helped introduce us to our first stores outside Kansas City. They have been quite generous with advice and suggestions, which is extremely important since I don't have a background in gourmet food marketing.
If you could go back in your business journey and change one process or approach, what would it be, and how do you wish you'd done it differently?
I'm glad I started the company while my kids were still at home. My family was a big support and helped me with everything from making vanilla to local deliveries. I wish I had understood earlier that my business was quite unique and that I was in charge of sales strategy. I kept waiting for others to tell me how to do it right. Getting comfortable with learning through trial and error is tough. I'm glad I can learn from friends and family who have also been business owners.
When it comes to this specific business, what is something you've found particularly challenging and/or surprising that people who get into this type of work should be prepared for, but likely aren't?
I still make all my products, and that has been the biggest challenge for me. Understanding every part of production is difficult. It felt like an intensive MBA program, at times, to learn the language of every process, from labels to packaging to shipping. I recommend that you find other smaller companies in your area that know the challenges of small businesses and can find good pricing for you. And know that it's okay to not know everything. I also like to regularly interact with customers and hear about how our vanilla is now part of their cherished family recipe. You must hold onto the good you're putting into the world.
Can you recall a specific instance when something went very wrong? How did you fix it?
We sold into a national catalog for a few years, and it was fine. In the beginning, I was thrilled to be sold by a company I had shopped with for years. But over time, they asked for more discounts and locked us into pricing that didn't let us make much money. Interacting with them was nearly impossible. So we chose to stop selling to them. It was disappointing, but because of that exposure, we got picked up by Christopher Kimball's Milk Street and enjoy a wonderful relationship with them. I learned that to grow, I must take opportunities. Even if it doesn't end well, I always learn from it. And, often, something better is on the horizon.
How long did it take you to see consistent monthly revenue? What does growth and revenue look like now?
I was juggling mom duties and the side hustle for the first three years, and then Covid happened. This time was so challenging for retailers. But I watched store owners embrace new adventures, like selling online or curbside delivery. They were inspiring to me. As the sourdough bread craze took hold and people were in the kitchen, our online sales took off. While I had been focused on selling into stores, I suddenly had the courage to spend resources devoted to online selling. Our consistent monthly sales began in 2019.
Growth is now a nice combination of wholesale and direct-to-consumer. We expect to have annual revenue of six figures by the end of 2025.
What do you enjoy most about running this business?
I love making a product that brings so much happiness to bakers and their families. Vain shines a spotlight on an ingredient that gets overlooked and is often misunderstood and underappreciated. Vanilla orchids are incredible; these beans are all lovingly cultivated by hand and result in flavoring that is all-natural. Vain captures the best things about vanilla: That's why we put a vanilla bean inside every bottle. There's magic in combining two ingredients for outsized flavor. It's what vanilla extract should be. I'm proud to showcase these incredible single-origin vanilla beans for flavor that takes recipes to the next level.
What is your best piece of specific, actionable business advice?
Two pieces of advice: 1. You are your business. In a small business, your personality and approach define your brand. Stay focused on the customer, yes, but also cultivate relationships with other small businesses in your community. Learn from them and be flexible so you can pivot when necessary.
2. Nothing happens until a sale is made. I am still learning how to sell my products, and that's okay. Don't be daunted by selling. It can be tough to begin to make connections, but it gets easier, and it will be the lifeblood of your company. Plus, you meet amazing and like-minded people along the way!
