Podcast Summary
Enduring tough decisions for business growth: Persevering through acquisition offers and staying true to your vision can lead to significant business growth and personal fulfillment
Perseverance and holding onto your vision can lead to significant growth and success in business, even when faced with tough decisions and numerous acquisition offers. As shared by Gary Erickson, founder of Clif Bar, he and his team endured numerous offers to sell their company over the course of 30 years, but ultimately decided to hold on and continue growing it. This decision led to exponential growth and success, despite the financial security that could have come with selling earlier. Additionally, having a clear vision and staying true to it, even when faced with difficult decisions, can lead to a sense of fulfillment and happiness that may not be achievable through a sale.
Focusing on a niche community leads to success: Starting small within a specific community can lead to significant growth and market success
Starting a successful business often begins with identifying and catering to a specific community or niche. Gary Erickson, the founder of Clif Bar, did this by focusing on the cycling community and distributing his energy bars at cycling events. This grassroots approach helped establish a loyal customer base, which later expanded to a wider market. Similarly, Stoked Plastics and Opolis Optics found success by transforming ocean waste plastic into sustainable performance plastic and initially focusing on creating sunglasses and ski goggles. By proving the capabilities of their recycled material through their Opolis brand, they aim to eventually replace virgin plastic with their stoked plastic technology in various industries. Both Clif Bar and Stoked Plastics/Opolis Optics demonstrate that starting small and building a strong foundation within a specific community can lead to significant growth and success in the marketplace.
Revolutionizing plastic industry with sustainable material: Founders of Stoked Plastics aim to create a certification-status for their sustainable, circular, and high-performing plastic, justifying higher cost, while facing challenges in educating the marketplace about its differences.
Stoked Plastics is revolutionizing the plastic industry by offering a sustainable, circular, and high-performing material for companies to use in their manufacturing. The founders of Stoked Plastics aim to create a certification-like status for their plastic, similar to how "organic" is perceived in the food industry, justifying the higher cost. Although sales have been sufficient to attract investors, the founders acknowledge the challenge of educating the marketplace about the differences between their plastic and competitors'. They've faced this issue before, as in 1992 when CLIF Bar introduced a completely different product and had to educate consumers about its unique energy-giving properties. Despite facing competition and legal challenges, the founders remain determined to change the plastic industry and inspire other brands to join their mission.
Differentiating a brand in a competitive market: To succeed in a competitive market, balance unique selling points with product functionality and desirability through strategic marketing and partnerships.
When entering a competitive market, it's essential to differentiate your brand and showcase what sets you apart. Clif Bar, for instance, aimed to put their competitors out of business by targeting their market share aggressively. Athlete endorsements and influencer associations have also been crucial for Clif Bar in building brand identity and credibility. However, it's important to remember that while some consumers may be drawn to the story and eco-friendly aspects, the majority will be more interested in the product's function and quality. Ultimately, a successful marketing strategy involves striking a balance between showcasing your unique selling points and emphasizing the product's functionality and desirability.
Innovation and vertical integration in business: Secure intellectual property for unique products, collaborate with AI companies for efficiency, and act quickly to secure resources for success in competitive industries.
Innovation and vertical integration are key to standing out in a crowded business landscape. Gary Erickson's company, which started with producing a functional, sustainable material for bike frames, is an excellent example. By securing intellectual property for their unique product, they gained an advantage in a market where functional materials like carbon fiber are widely used. Additionally, the shift towards sustainability is a significant trend, making their product even more valuable. This innovative approach to business, combined with quick action and determination, can help companies succeed in competitive industries. Moreover, the conversation touched upon the importance of teamwork and collaboration, as exemplified by the partnerships between Atlassian and AI companies. Atlassian's AI-powered software enables teams to work more efficiently, make informed decisions, and maintain confidentiality. Similarly, Grammarly's AI writing assistant helps companies communicate effectively and maintain a consistent brand voice. Lastly, the importance of acting quickly to secure resources, whether it's concert tickets or top talent, was emphasized. Utilizing powerful matching technology, like ZipRecruiter, can help businesses find the best candidates before their competition does. Overall, the discussions on this episode of "How I Built This" highlight the importance of innovation, teamwork, and quick action in today's business landscape.
Competing against giants with community engagement: Building a loyal community and giving them a stake in the business can help small brands compete against larger competitors
Grassroots marketing and community engagement were key strategies for Clif Bar to establish a strong presence in the energy bar market despite competition from larger brands. Valerie Franklin from Artisans Cooperative called in with a similar question, seeking advice on how to compete against giants like Etsy with limited funds but a strong community ownership model. While Artisans Cooperative does not necessarily charge lower fees than Etsy, the cooperative business model allows members and supporters to have a say in how the business is run and share in profits. Both Clif Bar and Artisans Cooperative demonstrate the power of building a loyal community and giving them a stake in the business.
Creating a niche marketplace: To compete with giants, focus on a niche market, attract a critical mass of artisans with incentives, and leverage social media to promote the marketplace.
Building a marketplace to compete with giants like Amazon, Etsy, and eBay requires strategic thinking and a targeted approach. The community-driven marketplace discussed in the conversation, with around 300 members and 200 shops, aims to attract the 1% of artisans and consumers looking for ethical alternatives. The marketplace is not trying to replace these giants but instead wants to offer a niche market. The challenge lies in the chicken-and-egg situation where enough artisans are needed to provide consumer choice, but enough customers are needed to make it worthwhile for artisans to join. The marketplace is still in its early stages, having launched its beta marketplace only 6 months ago. To gain momentum and sustain the business for the long haul, the marketplace could consider offering incentives to attract a critical mass of artisans. Leveraging the community, especially on social media, can also help promote the marketplace.
Effective communication and website design for artisan cooperatives: Engage and retain members through communication and a user-friendly, visually appealing, niche-focused website. Utilize unique skills and differentiate from Etsy. Focus on gifts as a market segment.
Building a successful cooperative platform for artisans involves engaging and retaining members through effective communication and a well-designed website. Members bring unique skills and backgrounds, and utilizing everyone's strengths is essential. Creating a user-friendly, visually appealing, and niche-focused website is crucial to attracting and retaining customers. Etsy serves as a great example, but differentiating from Etsy through unique values and product offerings is key. Additionally, focusing on gifts as a significant market segment could drive sales for both artisans and customers. By implementing these strategies, a cooperative platform can create a strong community of invested members and customers.
Navigating the Overwhelming World of Etsy Gifts: Provide clear and concise gift recommendations, offer additional options, and effective marketing are keys to enhancing the Etsy shopping experience.
When it comes to finding the perfect gift, especially on platforms like Etsy, people often feel overwhelmed and need guidance. Valerie Franklin from Artisan's Cooperative shared her experience of looking for a gift and expressed the need for a clear and concise list of top gifts or recommendations. Gary, the host, suggested the idea of adding on gifts as an effective way to increase per order amount. Valerie appreciated the feedback and direction given, and they both agreed on the potential of Etsy as a go-to place for unique gifts. The conversation also touched upon the importance of effective marketing for small businesses, like Lillibrush, to reach a larger audience. Overall, the discussion emphasized the significance of providing clear and helpful information, as well as offering additional recommendations, to make the shopping experience more enjoyable and efficient for customers.
From painting to pet hair removal, determination leads to success: Determination and resilience can lead to the creation of successful businesses, even from personal pain points or unexpected challenges
Determination and resilience can lead to the creation of successful businesses, even in the face of adversity. Lily Brush's founder, who was once a painter, pivoted her career after a near-death experience and the discovery of a need for an effective pet hair remover that didn't involve sticky rollers or vacuuming. Her invention came from a personal pain point and her desire to find a better solution. The business, which started in 2010, has since grown into a successful company that offers efficient and eco-friendly pet hair removal solutions. The story is a reminder that life's challenges can lead to opportunities and that following one's passion and intuition can result in remarkable outcomes.
Creating a durable product can give you a competitive edge: Focus on product's unique value proposition and find creative ways to reach potential customers
Creating a high-quality, long-lasting product can be a competitive advantage, even if it takes longer to gain traction in the market. Elsie's story of creating a durable pet grooming tool and building a successful business around it illustrates this. However, scaling the business and getting the word out presented challenges. One suggestion was to emphasize the originality and quality of the product and potentially seek partnerships with complementary brands. Another idea was to target specific retailers or industries where the product would be a natural fit, such as car washing or car care. Ultimately, the key is to stay focused on the unique value proposition of the product and find creative ways to reach potential customers.
Staying committed to the vision and finding creative ways to grow a small business: Persistence and innovation are crucial for small businesses, even when facing challenges. Focus on getting the product in front of influencers and consider hiring external expertise for growth.
Persistence and innovation are key to growing a small business, even when it feels like you're still the underdog. Gary's experience of giving away product at bike events resonated with the caller, who acknowledged that their brand was still small and faced challenges. But the caller was encouraged to keep going because they believed the product was innovative and had the potential to solve a common problem. They discussed the importance of getting the product in front of the right influencers and potentially hiring experienced help to expand the business. The callers' journey of self-funding and bootstrapping their business was admired, but it was also acknowledged that bringing on external expertise could be beneficial for growth. Overall, the conversation emphasized the importance of staying committed to the vision and finding creative ways to get the product into the hands of potential customers.
Maintaining momentum and engaging in conversations with supportive people: Stay focused, be resourceful, and build a strong network for business success. Reach out for advice and support when needed.
Building a successful business often requires continuous learning and support from others. Gary Erickson, the founder of Cliff Bar, emphasized the importance of maintaining momentum and engaging in conversations with people who can help you grow. He also highlighted the power of word-of-mouth marketing and the benefits of having essential tools readily available. For instance, he mentioned ordering multiple brushes to keep in various vehicles and rooms. Overall, Erickson's story serves as an inspiration for entrepreneurs, demonstrating the importance of staying focused, being resourceful, and building a strong network. If you're working on a business and need advice or support, consider reaching out to be featured on the show. Remember, when you're committed to raising the standard, you're bound to ruffle some feathers. Stay committed and choose happiness with Happy Egg, the egg brand that partners with local small family farmers to produce eggs the way they used to be, focusing on happy hens and simple farming. Visit happyegg.com to learn more.
