Minority Representation in Business

Judi Henderson-Townsend has a resolution for the New Year: Become a million-dollar business. It won’t be easy. For nearly 15 years, the Oakland, Calif., resident has been selling, renting and recycling mannequins -- a quirky line of work that she stumbled upon, quite accidentally, while looking for a garden sculpture on Craigslist in late 2000. Annual revenue for her company, Mannequin Madness, has fluctuated over the years, sometimes topping $500,000, but always staying shy of $800,000. A big challenge with growing such a unique business, Henderson-Townsend says, is that there aren’t a lot of similar success stories to emulate. It’s also hard as a woman and an African-American. “When you see more inspirational role models, then you think it’s possible for you,” she says. “When I look at business publications, I don’t see anyone who looks like me, especially being out near Silicon Valley.” Related: Why Women Need Role Models Henderson-Townsend, now 56, had worked in sales for Corporate America -- namely, Johnson & Johnson and United Airlines -- when she decided to join a small dot-com 13 years ago. Right around that time, she happened to spot a guy selling mannequins on Craigslist. She decided to check out his entire collection, about 50 dummies in all, to pick one for her garden. “And he says, ‘now that I’m leaving the state there won’t be a place to rent a mannequin in the Bay area,” she recalls. “I had one of those Oprah ‘aha’ moments.” Mostly on a whim, Henderson-Townsend bought the man’s entire inventory, spending about $2,500 in the process. She had long wanted to do something entrepreneurial, so she ran the rental business as a part-time venture -- until her dot-com employer went belly-up a year later. Since then, Henderson-Townsend has spent most of her waking hours peddling parts of all kinds -- hands, heads, feet, legs and torsos -- not to mention full-body forms of men, women and children. Early on, she expanded into sales. The first challenge: Find more inventory. She asked department stores to give or sell her their used mannequins, which she could essentially “recycle” by selling to smaller retail stores, eBay vendors or anyone with an interest. It was a good deal for retailers, who often have to pay a big dumpster fee to dispose of the bulky, non-biodegradable forms. The first to bite was Sears, who sent hundreds of used mannequins her way. “We had 500 mannequins in our basement, in our backyard, in our garage stalls,” she says. “It truly was mannequin madness.” Nordstrom, Ralph Lauren and Kohl’s followed. In 2003, she won an award from the Environmental Protection Agency for recycling more than 100,000 pounds of mannequins in one year. About seven years ago, Henderson-Townsend expanded from her home to a 1,300-square-foot warehouse. “We came back from a long vacation and got a note from city officials because we had all this inventory coming out of our driveway,” she says. “Sometimes you need a push.” The bigger space allowed Henderson-Townsend to step up her business. She decided to become the “FTD of mannequins,” creating a network of about 40 independent mannequin suppliers all over the country. Much like the floral chain, she serves as a broker, connecting retailers who wish to recycle or buy mannequins to small suppliers in a variety of major cities. Still, sales have not grown as much as she’d like, and she’s had setbacks along the way, such as a failed expansion attempt in Las Vegas. And the recent recession took a toll. But 2014 may be the year that will change, Henderson-Townsend believes. This year, she’s essentially committed to a three-step process to grow her business. It boils down to the following: Drill down on the numbers. Find another revenue stream. And last but not least, change the mindset. Related: A Tip to Help Boost Your Business's Bottom Line To analyze Mannequin Madness’s financials, Henderson-Townsend, who doesn’t have employees, hired a controller as an independent contractor in October. “She is looking at the numbers and figuring out where to put revenues,” Henderson-Townsend says. The controller is also looking at each Mannequin Madness vendor to determine if the company is making enough profit. The controller has created spreadsheets with graphics that Henderson-Townsend finds easy to understand. “That is a huge step,” she says. Next, to boost revenue, Henderson-Townsend is considering introducing a product line. “It is a protective cover for the mannequins, for when they are being stored or transported,” she says. Potential customers would be large retailers. She’s found a local manufacturer and is looking to introduce it in the third quarter, typically a slower time of year for her. Lastly, Henderson-Townsend is working on embracing a “million-dollar mindset” -- something she thinks is hard for women in general. Female entrepreneurs often “don’t think they are worthy,” she says. “When you walk into a place feeling powerful, people treat you differently than when you sort of slink in.” She’s taking classes on business leadership over the years, and is currently reading the book “How Rich People Think” by Steve Siebold to help conquer her perceived inabilities. Related: 5 New Year's Resolutions for Ambitious Women If she’s successful at becoming a million-dollar business, Henderson-Townsend believes she’ll accomplish more than just a financial goal. “Most women businesses, and particularly most minority women business owners, don’t ever get to that target,” she says. “I want to show that it’s possible.”

Minority Representation in Business

Turning Body Parts Into a Business

The Story Exchange

Minority Representation in Business

Turning Body Parts Into a Business

The Story Exchange

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