Podcast Summary
Leveraging AI for Business Success: AI saves time and resources through clear communication in business. Audible and Grammarly are AI tools for audiobooks, podcasts, and writing assistance. Entrepreneurs need to work hard to maintain retail partnerships.
AI is no longer a novelty but a business necessity, saving time and resources through clear communication. Audible offers a vast library of audiobooks and podcasts, while Grammarly's AI writing partner helps prevent miscommunication and keeps teams organized. Pete Maldonado, co-founder of Chomps, shares his experience in deal-making and the importance of learning this skill for entrepreneurs. When it comes to retail partnerships, Maldonado advises that the hard work begins after securing a spot on the shelf. New founders should remember that maintaining the partnership requires dedication and effort. To learn more about Audible, visit audible.com/builtortextbuiltto, and for Grammarly, go to grammarly.com. Additionally, tune in to How I Built This Lab for advice from successful founders like Pete.
Managing Trade Spend and Securing Shelf Space in Retail Stores: Effective trade spend management and securing shelf space are crucial for CPG brands, as retailers charge significant fees and penalties. Brands must make informed decisions based on understanding these complexities.
Managing trade spend and securing shelf space in retail stores is a complex and crucial aspect of any Consumer Packaged Goods (CPG) brand. Retailers charge fees and penalties, and the bigger the retailer, the more they charge. These costs can add up significantly and require careful management. Moreover, securing and maintaining shelf space is essential, as retailers may replace underperforming products. For brands like Badass Bagels, which have established a following through brick-and-mortar locations and farmers markets, deciding whether to expand into consumer product goods or open more physical stores can be a challenging decision. Understanding the intricacies of trade spend and retail relationships is vital in making informed business choices.
Jennifer's Bagels: From Passion to Profitability: Jennifer's successful bagel business, rooted in artisanal sourdough and high-quality products, is considering expansion through franchising. She must find capable operators, determine franchisee value proposition, and navigate challenges like proprietary recipes and shipping logistics.
Jennifer's Badass Bagels business is a success, rooted in her passion for baking sourdough and providing high-quality bagels to her customers. However, she's considering expansion through franchising and needs to determine if she's ready to teach others to replicate her business model. Sourdough's slow fermentation process sets it apart from commercial yeast-leavened bread, and the bagel's structure differs significantly. Jennifer's business currently operates in two locations, with plans to potentially expand nationally due to its profitability and demand. Her bagels, which are primarily sold directly to consumers through online orders, freeze well, allowing for easy shipping. If Jennifer decides to franchise, she'll need to find capable operators and determine the value proposition for franchisees, such as access to her proprietary gluten-free bagel line. Overall, Jennifer's journey from a restaurant to a bagel shop has led her to a thriving business that she's eager to grow, but she must carefully consider the challenges and benefits of franchising.
Branding, Partnership, and Product Innovation for Food Business Success: Successfully growing a food business involves creating a unique brand, choosing dedicated franchise partners, streamlining ordering, offering higher-value items, exploring co-packing, and focusing on product innovation.
Building a successful food business, like Badass Bagels, requires a strong brand and careful consideration when choosing a franchise partner. The brand differentiator, such as sourdough bagels, is crucial for standing out in the competitive market. When considering franchising, it's essential to find a partner whose business revolves around the franchise, ensuring their dedication and commitment to its success. Additionally, streamlining the ordering process and creating higher-value offerings, like gift boxes, can help absorb shipping costs and improve the customer experience. From a different perspective, exploring co-packing and CPG opportunities can open doors to new markets and product lines, but it's essential to determine if the unique flavors can be mainstreamed enough for mass appeal. Overall, focusing on branding, partnership selection, and product innovation are key elements for growing a successful food business.
Finding the Right People for Business Growth: Carefully consider and research potential partners, emphasize the importance of incrementality and differentiation, and focus on unique aspects of a business to attract and serve an incremental customer base.
Finding and partnering with the right people is crucial for success, especially when expanding a business through franchising or distribution. Jennifer Volin, the founder of Badass Bagels, discussed her experiences and strategies for growth, highlighting the importance of incrementality and differentiation in the market. She emphasized that big corporations may not be able to provide the same level of attention to detail and unique offerings as smaller businesses. Volin also encouraged entrepreneurs to consider what will make them happiest and most fulfilled in their business ventures, as success and revenue don't always equate to happiness. Overall, the conversation underscored the significance of careful consideration and research when choosing partners and focusing on the unique aspects of a business to attract and serve an incremental customer base.
Effective collaboration and the right tools contribute to growth: Using efficient tools and effective collaboration can help manage internal processes, keep up with demand, and grow a business. Personalized gifts can also leave a lasting impression.
Effective collaboration and the use of efficient tools can significantly contribute to a company's exponential growth and success. Canva, a rapidly growing design platform, uses Atlassian products like Jira and Jira Service Management to manage their internal processes and customer feedback, enabling them to process thousands of tickets per year and keep up with demand. Meanwhile, small businesses like Chomps also face decisions on when to scale up and build partnerships. Pete, the founder of Chomps, initially declined an offer from Trader Joe's to create a private label product line due to the potential distraction from focusing on their brand. But, simplicity and effective collaboration are key. Mercury, for instance, powers financial workflows for ambitious companies, providing precision control and focus. Ultimately, whether it's a team of two or two million, the right tools and partnerships can help keep everyone connected and moving towards shared goals. Additionally, a simple yet effective gift can leave a lasting impression. M&M's offers personalized candy and party favors, making for a unique and memorable gift for various occasions. The ease and fun of creating personalized M&M's online make it an ideal go-to gift. In essence, the art of making the complex feel simple can transform your business operations and personal life, leading to increased efficiency, collaboration, and growth.
From hobby to retail success: Brandy's journey with Just Add, Honey: Passionate founder Brandy evolved her tea hobby into a successful retail and online business, emphasizing clear packaging to stand out on shelves, and remains dedicated to her brand as she aims to become the first nationally recognized black-owned tea company in the US.
Passion and adaptability are key drivers for small businesses looking to expand into larger retail markets. Brandy, the founder of Just Add, Honey, started her business as a hobby and evolved it into a successful retail and online operation over the past 17 years. Her unique selling proposition lies in the variety and functionality of her tea offerings. To stand out on retail shelves, she emphasizes clear packaging that showcases the tea's appearance, making it easy for customers to understand the benefits and appeal of each product. As she looks to enter the big box market, Brandy's dedication to her brand and her innovative approach to tea will be crucial in navigating the competitive landscape and achieving her goal of becoming the first nationally recognized black-owned tea company in the US.
Focus on sustainability and authenticity sets company apart: To expand, company may need co-packing or intermediaries. Starting small, gaining exposure, and showcasing story can lead to success.
The company's focus on sustainability and authenticity, as demonstrated by their direct sourcing from small growers around the world and their in-house production, sets them apart. However, to scale up and meet the demands of big box retailers, they will need to explore co-packing solutions or work with intermediaries. The company's approach to starting small and regionally, such as with Whole Foods, is a smart strategy for gaining exposure, building a customer base, and forecasting potential national rollout success. To enhance their branding, the company could showcase their sourcing trips and the story behind their grandmother's tea on their website and packaging to connect more deeply with consumers.
Sharing a unique brand story sets businesses apart: Telling personal stories and focusing on premium aspects can help small businesses differentiate and build a loyal following.
Sharing a unique and authentic brand story can help differentiate a business in a crowded market and create a loyal following. The speakers emphasized the importance of showcasing the personal connections and experiences that make a brand special, such as the story of tea blends inspired by the speaker's grandmother in New Orleans. They also suggested using various platforms, including websites and product packaging, to share this story and build a connection with customers. Another key point was to focus on the premium aspects of the product and tell the story effectively when entering retail spaces, rather than trying to compete on price. Overall, creating a strong brand story can help small businesses stand out and thrive in a competitive market.
Streamlining Operations for Business Savings: Consolidating major business processes onto one platform like NetSuite reduces IT costs, eliminates manual tasks, and saves money. Online businesses like Mint Mobile also cut costs by selling directly to consumers and eliminating retail stores.
Businesses can save costs and improve efficiency by consolidating their major business processes onto one platform, such as NetSuite. This not only reduces IT costs and eliminates the need to maintain multiple systems, but also slashes manual tasks and errors. NetSuite is used by over 37,000 companies, and they are currently offering a flexible financing program. On the other hand, Mint Mobile is a wireless service provider that sells plans online, cutting out retail stores and overhead costs, resulting in significant savings for customers. For a limited time, Mint Mobile is offering a new customer deal with plans starting at $15 a month for unlimited talk, text, and data on the nation's largest 5G network. Jake, the owner of Annie Alaska Inc., is exploring direct-to-consumer sales for his salmon business due to volatile prices and limited cash. Pete suggested focusing on selling directly to consumers in Utah during the summer fishing season to secure better prices. Both NetSuite and Mint Mobile demonstrate the power of streamlining operations and cutting costs to benefit businesses and consumers alike.
Profitable but Risky: Salmon Fishing Business: Salmon fishing businesses can earn significant profits but face price volatility and a small customer base. Direct sales and expansion strategies can help mitigate risks.
Owning a salmon fishing business can be highly profitable, with potential earnings of up to $350,000 in a good season. However, the volatility of prices and the small customer base make it a risky venture. The business owner, Pete, is currently focusing on selling salmon directly to customers in Utah, but there's potential to expand by working with a third-party fulfillment group or creating value-added products. Starting a salmon business in grocery stores requires networking, showing a track record of success, and considering packaging options. Sampling and driving trial are effective ways to build a customer base, but farmers markets may not be an option during the salmon season.
Persistence and community outreach for business growth: Persistently utilize personal networks, reach out to local communities, leverage social media, and build relationships with local businesses to generate sales and build a customer base.
Persistence and community outreach are key strategies for getting the word out about a new business, especially during the early stages. The speaker emphasized the importance of utilizing personal networks and reaching out to local communities to generate sales and build a customer base. He shared his experience as a missionary and a door-to-door salesperson, emphasizing the importance of persistence and the value of face-to-face interactions. Additionally, the speaker suggested leveraging social media platforms, such as TikTok and Instagram, to share the business story and showcase the product. He also recommended reaching out to local restaurants to explore potential partnerships. Overall, the speaker's advice emphasized the importance of telling a compelling story, building relationships, and leveraging various channels to reach potential customers.
Boost online presence in the second year: Encourage customer engagement for increased online presence, even with non-professional content. Be bold, persistent, and resilient.
For entrepreneurs in the early stages of building their business, the focus should be on expanding the customer base for the upcoming season. During the first year, energy should be devoted to making sales and building relationships. However, in the second year, it's essential to encourage customers to leave reviews, take photos, and share content to boost online presence. Even if the content isn't professional, authenticity can go a long way. The key is to be bold, persistent, and resilient in the face of setbacks and rejections. Keep pushing forward, and the success will follow.
Power struggles and internal conflicts in OpenAI lead to public controversy: Clear communication and alignment are crucial for organizations dealing with advanced technologies like AI to avoid power struggles and public controversies
Even in successful businesses, internal conflicts and power struggles can lead to unexpected outcomes. This was evident in the case of OpenAI and the firing of its charismatic CEO, Sam Altman. Despite the initial success of ChatGPT, tensions arose within the company regarding the future direction of AI. These conflicts eventually escalated into a public controversy, highlighting the importance of clear communication and alignment within organizations, especially when dealing with advanced technologies like artificial intelligence. If you're interested in learning more about this corporate drama and its implications for the future of AI, tune in to the latest season of Business Wars on the Wondery app or wherever you get your podcasts. And remember, if you have a business question or issue, feel free to reach out to the Advice Line for some insight and advice.
