CARA B Natural Products Inc. Owners: Landra Booker Johnson and Kristi J. Booker Location: Charlotte, North Carolina Product: Hair and skincare products formulated especially for ethnically diverse babies and children Launch: July 2010 Launch Costs: $150,000 of their own funds for market research and development; formulation of products; prelaunch and launch marketing; and business logisitics 2010 Revenues: $500,000 2011 Projections: $1 million Now: Thorough research of the industry before formulating and selling products has led to brisk online sales through website and retail store partnerships Next: A national advertising campaign, new products, and additional retail outlets There are plenty of products on shelves geared toward African American adult women with natural hair, but CARA B Natural Products Inc. (www.mycarab.com; 888-238-4552) has put some twists into its haircare and skincare offerings. Its CARA B Naturally brand is for African American, Latino, and multiethnic children–and made of all-natural ingredients. As the natural self-care movement has grown, organic foods and chemical-free products have become more popular. To address the demand, Landra Booker Johnson and her sister, Kristi J. Booker, founded their company in July 2010, and made just under $500,000 in gross revenues by the end of that year. Landra, CARA B's CEO, attributes the company's rapid revenue growth to market demand and their solid groundwork. Before bringing their products to market, "We were very careful when it came to researching the industry and finding formulators who specialized in working with natural products,†the 38-year-old says. "We had a business plan in place before we started operating as an official company.†Kristi, the chief marketing officer, adds, "We wanted to make sure that we educated ourselves so that we could be not only aware as businesspeople, but also as consumers.†A lifestyle change led to the birth of the business that they launched using $150,000 of their personal savings accumulated through investments. In 2006, Landra, a former journalist, sought out chemical-free products for her toddler son's hair and skin and found the market lacking. "I had made the transition away from toxic chemicals when it came to the food I consumed and the products I used in my home,†she says. There were all-natural general-market products available, "But they weren't effective when it came to my child–his skin, his hair.†CARA B Naturally is a loose acronym of the business slogan "Children Are Always Beautiful, Naturally,†and the product line strives to promote that message. Landra's son, now 7, is involved in the business, as is her 4-year-old daughter. Their images–two drawings of the boy and one of the girl–grace the product label. "They have been the inspiration for the line. They have been the guinea pigs,†Landra laughs. "They're good sports about it, though.†(Continued on next page) The products are tested at home and through focus groups but are professionally formulated, and the sisters took an extra step to enhance their credibility. Nearly all CARA B products are certified by the Natural Products Association (www.npainfo.org). "They're really the standard-bearer defining what is considered natural and what is not,†says Kristi, 31. "So we use them as a guide, kind of setting the standard for us in terms of whom we partner with, where our ingredients come from, how they're sourced, and what happens to them when they're in their formulation.†CARA B products include body lotion, shampoo and body wash, and leave-in conditioner. The two sisters hope that maintaining those standards will help them double their revenues this year. In January, CARA B expanded into the retail market, and its products are now sold in nearly 50 stores, including some in the Whole Foods Market chain. So far, radio has been a boon for advertising. In April, for example, CARA B was business of the week on The Michael Baisden Show, which led to a 40% jump in direct sales. Plans are under way to do a national launch on radio and other types of media, including advertising digitally through mom-focused websites. Two new products are in the works for release this year, and CARA B is scheduled to be on shelves in some CVS locations beginning January 2012. While CARA B is a full-time pursuit for Landra, Kristi works full time as an account director for an advertising agency heading up its Hispanic initiatives. Still, she asserts that her work for CARA B requires the hours of a full-time commitment. "What's worse than full time? Whatever it is, that's what we're doing,†Landra says with a laugh. "But we enjoy it, so it doesn't seem at all like a burden.â€