Podcast Summary
Retail partnerships costs: Retail partnerships involve additional expenses and resources beyond just securing shelf space, including quality control, trade spend management, and dealing with fees and penalties. Entrepreneurs should be prepared to manage these costs effectively and consider their long-term goals before pursuing partnerships.
Building a successful business involves more than just getting your product on retail shelves. Pete Maldonado, co-founder and co-CEO of Chomps, shared his experience of the challenges that come after securing retail partnerships, including quality control issues, trade spend management, and dealing with fees and penalties. He emphasized the importance of understanding the financial implications of retail partnerships and being prepared to manage these costs effectively. For entrepreneurs looking to build partnerships with retailers, Maldonado advised being aware of the additional expenses and resources required to ensure a successful partnership. Additionally, he encouraged entrepreneurs to consider their long-term goals and whether expanding into consumer product goods or opening more brick and mortar locations aligns with their vision for the business.
Franchising for Jennifer: Jennifer, a successful bagel maker, is considering franchising to expand her business but faces challenges in finding capable operators and potentially sharing her proprietary gluten-free line. She aims to balance growth with maintaining quality and customer connection.
Jennifer, a former restaurant owner turned sourdough bagel maker, has found happiness in her business but sees potential for growth. She has successfully replicated her business model in multiple locations and is considering franchising. Her competitive advantage lies in her unique sourdough bagels and strong brand identity. However, to franchise, she would need to find capable operators and potentially share her proprietary gluten-free bagel line with franchisees. The challenge for Jennifer is to balance the benefits of franchising with the potential loss of control and special sauce in her team. Ultimately, her goal is to expand Bad Ass Bagels while maintaining the quality and customer connection that makes her business successful.
Business Partnerships, Finding the Right One: Finding a fully committed partner is crucial for business success, streamlining ordering process and focusing on differentiation can help increase sales, exploring niche markets and creating high-value products can lead to incremental growth, and consider personal happiness and meaning when building a business.
Starting a successful business requires careful consideration and partnership. The story of a friend's fried chicken sandwich business turning into a franchised chain serves as an example. Finding the right partner who is fully committed to the business is crucial for success. Additionally, streamlining the ordering process and focusing on differentiation can help increase sales and customer base. From the discussion, it also emerged that exploring opportunities in niche markets and creating high-value products can lead to incremental growth and success, even in competitive industries. Lastly, it's essential to consider what will bring the most happiness and meaning to the entrepreneur when building and growing a business.
Partnership evaluation: Thoroughly research potential partners to ensure a successful and mutually beneficial relationship, considering their business model, values, and capabilities.
When considering expansion and partnerships, it's crucial to carefully evaluate potential partners and consider the impact on your existing business. For instance, when the founders of Trump's Chomps were approached by Trader Joe's for a private label product line, they initially declined due to the distraction and resources required to manage another brand. However, they later became a branded item at Trader Joe's, which significantly boosted their business. Similarly, when franchising or seeking distribution, it's essential to thoroughly research and understand the partner's business model, values, and capabilities to ensure a successful and mutually beneficial relationship. This was emphasized by the advice given to Just Add Honey Tea Company, which is looking to expand into big box stores. The founders were encouraged to carefully consider their partnerships and the potential impact on their brand and business.
Brandy's branding and packaging strategies: Clear packaging with a window and personal stories can make tea appealing to customers and help build a customer base before pursuing national distribution
Brandy's Whack-on Tea Company's success can be attributed to their thoughtful branding and packaging strategies, as well as their commitment to sourcing high-quality tea leaves directly from farmers around the world. Brandy shared how they use clear packaging with a window to showcase the tea and make it appealing to customers on retail shelves. They also plan to expand their reach by starting small and locally, such as at Whole Foods, to test velocities and build a customer base before pursuing national distribution. Additionally, Brandy's personal connection to tea, through her grandmother and experiences at tea farms, is a powerful story that could be better showcased on their packaging and website to resonate with consumers.
Brand storytelling and visual content: Authentic visual content and a strong brand story can help differentiate a business and build a loyal following. Focus on unique product aspects and the story behind it to justify premium prices. Direct-to-consumer approach can provide better margins and stability. Find the right marketing channels to effectively reach the target audience.
Creating a strong brand story and connecting with consumers on a personal level can help differentiate a business in a crowded market and build a loyal following. The use of authentic visual content, such as brand videos and photos, can help bring the brand story to life and resonate with consumers. Additionally, focusing on the unique aspects of the product and telling the story behind it can help justify a premium price. For businesses in the early stages, considering a direct-to-consumer approach can provide better margins and stability, especially when dealing with volatile prices or uncertain markets. Lastly, it's important to find the right marketing channels to reach the target audience and effectively tell the brand story. In Jake's case, going direct-to-consumer in Utah during the summer fishing season could be a good strategy to secure better prices and build a local customer base.
Salmon Fishing Business Challenges: Volatility of market and potential low earnings during bad seasons can be risks. Expanding customer base with third-party fulfillment, value-added products, and networking can help mitigate these risks. Building initial sales with community and persistence is crucial.
Starting a business, such as a salmon fishing operation, can be profitable but comes with its own set of challenges. The potential for high earnings during a good season can set you up for the rest of the year. However, the volatility of the market and potential low earnings during a bad season can be a cause for concern. To expand the customer base and mitigate risk, considering working with a third-party fulfillment group or exploring different value-added products like canned salmon or salmon jerky could be beneficial. Building relationships and networking, especially with independent grocery stores, is essential for getting the product in front of potential customers. Utilizing tactics like sampling and starting with your community can help generate initial sales and build a customer base for future repeat orders. Persistence and determination are key in the early stages of a business.
Customer engagement strategies: In the first year, persistently make sales and create content to engage potential customers and build a community around the brand. In the second year, focus on customer reviews and testimonials to establish credibility and attract new customers through word-of-mouth. Be authentic, persistent, and creative in sharing the story behind the product and its value to customers.
Building a customer base for a new business, particularly one focused on selling a unique product like wild salmon, requires a combination of persistence and storytelling. The entrepreneur, Jake, should continue knocking on doors to make sales in the first year, but also start creating content, such as videos and recipes, to engage potential customers and build a community around the brand. Leveraging personal stories, showing the origins of the product, and providing educational content about the benefits of wild salmon can help differentiate the business and generate buzz. In the second year, focusing on customer reviews and testimonials can help establish credibility and attract new customers through word-of-mouth. Overall, the key is to be authentic, persistent, and creative in sharing the story behind the product and the value it provides to customers.
Resilience, Goals: Maintaining focus on goals and not letting obstacles deter you is crucial for resilience and achieving success. Seek advice from experts and reach out with specific questions or issues.
Resilience is key to overcoming setbacks and achieving success. The speaker emphasized the importance of maintaining focus on your goals and not letting obstacles deter you. He recommended listening to the Champs episode for a compelling example of this concept in action. For those working on a business and seeking advice, the speaker encouraged reaching out with a one-minute message about your business and any questions or issues you have. The Advice Line can be contacted at hibt@id.wondry.com or 1-800-433-1298. The episode was produced by a team at Wondery, and listeners can join Wondery Plus for early access or enjoy ad-free listening on Amazon Music. Remember to fill out a survey at Wondery.com/survey to share some information about yourself.