Podcast Summary
Focusing on a narrow market niche and innovative strategies: Embrace new ideas and strategies, focus on niche markets, and build a strong company culture to stand out from competition and advance careers.
In today's business world, standing out from the competition requires innovative strategies. Che Hwang, the co-founder of Boxed, entered a highly competitive market by focusing on a narrow band of products and catering to consumers' shift towards mobile shopping. This approach allowed Boxed to negotiate lower prices and build a market in the midst of established competitors. Similarly, individuals seeking to advance their careers can differentiate themselves by pursuing opportunities in innovative fields like technology and cybersecurity with organizations like the National Security Agency. Building a strong company culture is also crucial for attracting and retaining top talent. Overall, embracing new ideas and strategies can lead to success in both personal and professional endeavors.
Immigrant backgrounds and personal experiences shaping entrepreneurial pursuits: Immigrant backgrounds and personal experiences can inspire individuals to pursue unconventional paths and fuel their drive for success, leading to innovative entrepreneurial ventures.
The drive for success, often fueled by personal experiences and the desire to provide a better life for their families, can lead immigrants to pursue unconventional paths. Aaron Levie, the founder of Box, drew inspiration from his parents' struggles to build a stable life in America and their dream of seeing their children excel. Despite initial plans for a "safe" career, Levie's passion for innovation and entrepreneurship led him to create a successful tech company. This story highlights the importance of following one's dreams and the profound impact of personal experiences on individual goals.
Unexpected experiences broaden horizons: Lack of a clear plan doesn't hinder personal growth, unexpected experiences can lead to meaningful opportunities and broaden horizons.
Having a clear plan isn't always necessary for personal growth and unexpected opportunities can lead to meaningful experiences. The speaker, an economics graduate from Johns Hopkins University, had no post-graduation plan and ended up in Japan's JET Program, teaching English in rural schools. Initially, he was disappointed to be placed in the countryside instead of Tokyo or Kyoto, but this experience broadened his horizons and helped him navigate cultural differences despite being an Asian American. Eventually, he met his wife, also a Japanese teacher, during his time in Japan. While the speaker initially lacked a plan, his experiences in Japan shaped his personal and professional growth in unexpected ways.
Embracing the unexpected and adapting to new opportunities: Perseverance and a willingness to explore new paths can lead to personal growth and success, even when faced with unexpected challenges.
Even when faced with unexpected challenges, such as starting a new life in a foreign country or navigating a career path, perseverance and a willingness to explore new opportunities can lead to personal growth and success. The speaker's experience of transitioning to Japan and eventually pursuing a career in law, only to leave it behind to start a business, highlights the importance of following one's passions and adapting to changing circumstances. Additionally, the unexpected turn of events on his first day at the law firm, with Lehman Brothers filing for bankruptcy, demonstrates the unpredictability of life and the importance of being resilient in the face of adversity. Ultimately, the speaker's story is a reminder that taking risks and being open to new experiences can lead to unexpected opportunities and personal fulfillment.
The story of Astroape Studios and their unconventional path to success: Personal savings, a supportive network, and a clear vision can help entrepreneurs pursue their dreams despite uncertain times
Passion and determination can lead individuals to pursue unconventional paths, even during challenging times. The story of Astroape Studios, founded by Chris Chung and William Fong, illustrates this. Initially, they asked a friend and former law firm colleague, to help them with legal matters. Despite the risks and opposition from their families, the friend decided to join them full-time during the Great Recession. They started in a basement, with a small investment and faced skepticism due to the nascent mobile gaming industry. However, their belief in the potential of mobile games and their willingness to take risks paid off. The lesson here is that personal savings, a supportive network, and a clear vision can provide the necessary runway for entrepreneurs to pursue their dreams, even in uncertain times.
From Hopes and Dreams to a Successful Business: Starting a business without a solid plan and market understanding can lead to initial struggles, but it's never too late to adapt and succeed.
The success of Office Heroes, the first mobile game by Shane and his team, was not a well-planned business venture. They initially aimed to build the game, release it, and become millionaires, but their strategy was largely based on hopes and dreams. They relied on the App Store and word of mouth to attract players, and they even struggled to explain their business model to others. Despite the challenges, they managed to build the game using open source software and free labor, and they launched it in 2010 as one of the early freemium games. However, they were shocked to find that very few people were playing it, and they even suspected that their parents were lying about using it. It took some time before they realized that they needed to put more effort into marketing and promoting the game to attract more players. Overall, their experience highlights the importance of having a solid business plan and a clear understanding of the market when starting a new venture.
Unexpected iTunes feature saves Atlassian from failure: Unexpected endorsements or events can lead to business success, and the right tools can help teams present their work effectively and efficiently.
Sometimes, failure can be turned into success through unexpected means. Atlassian, a company known for creating software that improves teamwork and collaboration, was on the brink of failure when they discovered their game was unexpectedly featured on iTunes. This unexpected endorsement led to a surge in sales and revenue, saving the company from potential failure. Atlassian's continued innovation, including their new AI-powered software, is helping teams accomplish what would otherwise be impossible alone. Additionally, tools like Canva and Acura's all-electric ZDX can help individuals and teams present their work effectively and efficiently. Success may not come easily or as planned, but with determination, teamwork, and the right tools, it can be achieved.
Unexpected opportunity from a Japanese investor: As a novice, don't be discouraged by rejection, unexpected opportunities may come from unlikely sources.
Being naive and inexperienced in the business world can sometimes work to your advantage. The founders of a gaming company, who grew up in Central Jersey and were total noobs in the venture capital world, faced numerous rejections and setbacks when they tried to raise money for their business. They were even told to go back to their day jobs by a prominent Silicon Valley venture capitalist. However, they received an unexpected opportunity when the CEO of a large social gaming company in Japan reached out to them after seeing their game on the iTunes App Store. The CEO, who grew up in the same city in Japan as one of the founders, took a chance on them and invested $800,000 in their company. This investment allowed them to start ramping up their business, hire more people, and make more games. So, even if you're a novice in your industry, don't be discouraged by rejection. You never know when a connection or opportunity might come along that could change the game for you.
Creating Games Efficiently through Reskinning: Efficiently creating multiple games through reskinning allowed financial security and new opportunities, but strategic shifts led to eventual departure
In the gaming industry, creating new games often involves reskinning existing ones with new art and dialogue while keeping the same back-end coding. This efficient method allowed Asterape to create multiple games without significant additional costs, but it wasn't enough to make the business profitable. Despite this, the team enjoyed their work and was eventually acquired by Zynga, a gaming giant at the time, for a substantial amount of money. The acquisition provided financial security and enabled the team to take risks and pursue new opportunities. However, as Zynga prepared for an IPO and focused on mobile gaming, the team's role shifted from creative freedom to more strategic direction, leading them to eventually leave the company.
Identifying a gap in mobile commerce for bulk household items: Recognizing market trends and personal experiences led entrepreneurs to fill a gap in mobile commerce for bulk household items, securing investment and forming a team to build a successful business
The speakers identified a gap in the market for mobile commerce, specifically for bulk household items, based on their personal experiences and insights into market trends. They recognized the potential of mobile commerce as a major theme for the future, and saw an opportunity to solve a common problem for city dwellers who couldn't easily access bulk items at warehouse clubs. With the support of investors who believed in their potential, they formed a team and began building a mobile commerce engine to cater to this audience. The success of their previous venture gave them credibility and the means to start their new business, despite the larger scale and financial requirements compared to their previous game development efforts.
Overcoming Obstacles in Starting an E-commerce Business: Despite small size and limited resources, determination, creativity, and a willingness to learn from mistakes can help e-commerce startups overcome obstacles and secure partnerships with larger companies.
Starting a business, especially in a competitive industry like e-commerce, can be challenging, especially when trying to secure partnerships with larger companies. The founders of Boxed.com faced skepticism and rejection due to their small size and lack of resources. They started in a garage with a seed round of over a million dollars and initially focused on selling 200 fast-moving items. They conducted market research through store walks and talking to customers. Some of their initial product choices, like protein powder and sriracha sauce, were mistakes. To source their products, they approached CPG companies directly, which was met with skepticism due to their small size and lack of a proper warehouse facility. They ended up ordering products however they could, even if it meant buying them off store shelves and reselling them. Despite these challenges, they were able to eventually secure partnerships with major CPG companies and grow their business. The lesson here is that starting a business can be difficult, but with determination, creativity, and a willingness to learn from mistakes, it's possible to overcome obstacles and achieve success.
Starting a business in a dominated industry: Overcoming challenges from distributors and acquiring a domain name: Despite facing challenges like negotiating for a domain name and struggling to sell to distributors, the founders of Boxed persevered and grew their garage operation into a successful online bulk goods retailer.
When starting a business, particularly in an industry dominated by large corporations, the power dynamics can be challenging. The founders of Boxed, an online bulk goods retailer, faced this reality early on as they struggled to sell their products to distributors and middlemen. They began by operating out of a garage in New Jersey, packing and shipping orders as they came in. To manage their inventory and ensure accuracy, they developed an inventory management system based on their home. In their quest for a domain name, they encountered obstacles and had to negotiate to acquire box.com. Their first sale was of Bounty paper towels and tied pods to a customer in Queens. The early days were crucial in proving the concept and raising capital, with added pressure from having raised friends and family funds the first time around. Despite the challenges, they persevered and turned their garage operation into a successful business.
Unexpected opportunities can lead to significant business growth: Seizing unexpected opportunities can transform a small business into a bustling operation, highlighting the importance of adaptability and leveraging technology for growth
Sometimes a small business can experience a significant boost through unexpected opportunities. For Che and the Boxed team, this came in the form of a mention on The Today Show by Kathy Lee and Hoda. With no prior marketing budget, this endorsement led to a surge in orders, transforming their small operation into a bustling business. The experience underscores the importance of seizing opportunities and the potential impact they can have on a company's growth. Additionally, the use of tools like Squarespace and Audible were instrumental in helping Boxed build its brand and engage customers, demonstrating the power of leveraging technology for business success.
Selling virtual cows without membership fees: The e-commerce company attracted customers by offering convenience and saving them membership fees, differentiating themselves with personalized touches and targeting a wider audience.
The founders of an e-commerce company, which started by selling virtual cows online, deliberately chose not to adopt the membership model like traditional warehouse stores, such as Costco, to attract customers who didn't want to pay for memberships. Instead, they focused on offering convenience and saving customers the membership fee. The business model was challenging due to the variable cost of serving each customer online, making it difficult to offset costs with membership fees. The company also differentiated itself by including handwritten notes in packages, creating a personal touch and fostering customer loyalty. This approach helped the company target urban, suburban, and rural customers who might not have easy access to warehouse clubs or the time and resources to drive long distances to save a few bucks.
Personalized handwritten notes in every box: Investing in personal connections with customers through handwritten notes, even when it's not scalable, can differentiate a business and contribute to its growth.
Boxed, a company that started by selling bulk items online, differentiated itself from competitors by writing personalized handwritten notes in every box. This practice, which seemed not scalable, proved to be worth the investment as it created a one-on-one connection with customers. Even when sales were low in the early days, Boxed continued this tradition and expanded into the fresh grocery market to offer a wider range of products. Despite the competition from giants like Amazon, Boxed found success by focusing on its unique selling proposition and tapping into a massive market where every person in a developed country uses the types of products they sell daily. The handwritten notes, although time-consuming and costly, have become a key part of the company's identity and have contributed to its growth.
Thrive Market's Early Success through Focus on Own Label: Thrive Market's focus on own label allowed for fewer SKUs, smoother shopping experience, and customer loyalty, leading to impressive revenue growth despite initial challenges.
Thrive Market differentiated itself in the crowded e-commerce market by focusing on a specific assortment of products under its own label, Prince and Spring, in the early stages of the company. This strategy allowed Thrive Market to curtail SKUs, making for a smoother shopping experience, and concentrate buying power. It also helped build customer loyalty, with over half of repeat customers having a Prince and Spring item in their cart. Despite initial challenges in securing partnerships with big brands, Thrive Market persisted and saw impressive revenue growth, reaching $100 million by the end of 2016. The purchase of Whole Foods by Amazon in 2017 brought attention to the industry and validated Thrive Market's business model. However, it also presented new challenges, as Amazon's entry into the market forced Thrive Market to adapt and innovate to maintain its competitive edge. Throughout its journey, Thrive Market faced self-doubt and obstacles but learned to have thick skin and persevere, drawing on the experience of its founders' previous ventures.
Amazon's Whole Foods acquisition sparks interest in online grocery: Online grocery faces thin margins but Boxed aims for profitability through economies of scale, automation, and employee retraining.
Amazon's acquisition of Whole Foods marked a turning point in the industry, making online grocery a priority for many companies. This shift brought new attention to e-commerce businesses like Boxed, leading to increased interest and investment. However, the online grocery business comes with thin margins due to competitive pricing and shipping costs. Boxed is not yet profitable but sees a path to profitability through economies of scale and automation. The company has implemented a "boxed selfie cam" to build trust with customers and uses the same technology to develop robotic fulfillment centers. Despite the introduction of robots, Boxed has reassured employees that they won't lose their jobs solely due to automation, and has offered retraining programs to help them adapt and thrive in the changing work environment.
Amazon's Employee Initiatives: Amazon supports employees beyond jobs through education and emergency funds programs, fostering trust and security, while maintaining focus on safety and growth during the pandemic
Amazon's commitment to its employees goes beyond just providing jobs. They offer various programs to help employees afford college education for their children and build emergency funds. These initiatives, although seemingly unscalable, are important for building trust and creating a sense of security for employees. During the pandemic, Amazon's focus on employee safety and their ability to continue operations has been crucial. Despite the challenges, Amazon has maintained a positive outlook for the future, with potential for significant growth and the possibility of being acquired.
The Role of Hard Work, Luck, and Privilege in Entrepreneurial Success: Hard work, intelligence, luck, and privilege all play a role in entrepreneurial success, but only hard work is fully within your control. Approach your business with humility, a customer-focused mindset, and remember that external factors can also impact your journey.
Success in business, like in life, is a combination of hard work, intelligence, luck, and privilege. According to Che Juan, co-founder and CEO of Boxed, while he hopes people learn from his story of hard work, he also acknowledges the role of timing, luck, and privilege in his company's success. He encourages those starting their entrepreneurial journey to remember that they can only control one out of the three factors, and to approach their endeavors with humility and a customer-focused mindset. Boxed, which started with a misplaced box of paper towels and detergent, is now a thriving business, and Che's story serves as a reminder that even with hard work and intelligence, success can be influenced by external factors. As Amika, a customer-owned insurance company, emphasizes, empathy and customer service are essential in building a successful business. And with tools like Viator, travelers can plan their adventures with ease and confidence, knowing they have the support they need to make the most of their experiences.
