Theme Rains doesn’t come from a business background. Rather, Synthesis Organics grew from her combined passions for wellness, healing and energy medicine.
Pre-2020, Synthesis supplied holistic skincare and aromatherapy products to high-end spas.
While e-commerce was always part of the long-term plan, the COVID-19 pandemic forced Theme to pivot to online D2C sales sooner than anticipated.
And things took off in a big way. Today, with a bigger team, a new production facility and some expert support along the way, Synthesis has seen an 800% uptick in revenue.
A sector in bloom
Synthesis’s products are imbued with what Theme calls “energetic benefits”, designed to help restore the balance of the body, mind and nature.
“We’re a wellness product, delivering that through skincare and treatments that address modern challenges,” Theme explains.
“That’s done through the inherent lifeforce of the plants we choose to work with. A lot of them are native plants that have adapted and found resilience to environmental factors and other stressors, which can then be passed onto the user.”
Products are certified organic, and Synthesis has “zero tolerance” for any synthetic or artificial ingredients.
In part, the business is riding a general wave of growth in this space, with energy medicine being taken more seriously within the wellness sector.
“It’s moved on from being ‘woo-woo’,” Theme notes.
“It’s a trend, but really it’s an ancient art,” she adds.
“And we’ve got a unique positioning. We’re fusing nature with energy medicine — it’s ancient tradition, but also the forefront of the wellness trends.”
According to Theme, while some of life’s stressors are unavoidable, there’s increasing awareness that taking control over small things can make a big difference to a person’s overall well-being.
“People are becoming more and more aware of whether things are enhancing their lifeforce and well-being or whether they’re detracting from it,” she explains.
“If we can exercise that choice in the areas where we do have control, it can help us balance and offset the factors where we don’t.”
Growing pains
A steep uptick in sales doesn’t come without its challenges. In Theme’s case, she knew that in order to manage growth, Synthesis would need a bigger production facility.
Finding herself well outside her comfort zone, the founder also brought on an external CFO, to support her in decision-making for this new growth phase. Together, they applied for – and were granted — matched government funding to build this new resource.
Matched grant funding is generally tied to a specific project. The grant provider (usually state or federal government) will provide half of what is required to complete the project, and the business is required to come up with the rest, either out of their own funds or through investment.
In this intense period of growth, Synthesis’ revenue was increasing — but headcount and expenses were increasing, too.
“How government grants work is that they give you the money after you’ve done the development,” Theme explains.
“It’s a Catch 22, because you need the money to do it.”
Between everyday expenses, building the new facility, and waiting for the grant funding to appear, the team was facing a shortfall in capital. This is where Tractor debt funding came into play.
“Looking at the forecasting, it was really clear the months we would be in the red,” Theme says.
Debt funding fuelled the completion of the grant project, which then brought in more revenue, which allowed Synthesis to repay the debt.
“There was real clarity,” Theme notes.
“As long as things kept going the way they were, we knew we would be able to pay that back within five months. So we knew exactly how much funding to get, and the duration of it.”
Now the waters have settled somewhat, Theme says Synthesis is in a comfortable enough position to consider raising equity funding for the first time.
The business is stronger financially, and still growing, so she would likely be looking at a more favourable valuation.
But, more importantly, Synthesis is more established in terms of its messaging, mission and culture. This is now a proven model, and any investor will be aligned with Theme’s vision and future goals.
“The company is definitely a passion project, completely from my heart,” she says.
“I didn’t want to bring in funding that would dilute us and take away from our core offering. Now we’ve had the time to really establish ourselves — our policies and procedures, who we are and our essence,” she adds.
“So if we do bring in funding, it will be from a completely different position of strength and empowerment.”
Focus on your strengths
As a non-technical founder who’s new to e-commerce, Theme is the first to admit her inexperience in running a fast-growing business. Her passions and expertise lie in her products and the well-being of her end customers, so that’s where her focus remains.
“Don’t try to figure everything out on your own,” she advises.
“Get trusted advisors, who truly have your best interests at heart.”
For Theme, this has meant hiring a CFO to help steer her through a tumultuous growth period. It has also meant plugging into the Tractor community and taking advantage of webinars, masterclasses and expert connections.
Different people have different strengths, she advises. Focus on what you’re good at, and reach out for support where you need it.
“I really believe in the ecosystem, and that we thrive when we work together and support each other,” she says.
“You’ve got your passions. Stick to them and make space for them, because you don’t have time to learn it all and do it all.”
Find out more about Synthesis Organics here: www.synthesisorganics.com
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