Podcast Summary
From Volleyball to Entrepreneurship: Steve O'Dell's Journey: Dropping out of college to pursue entrepreneurial dreams can lead to success, as shown by Steve O'Dell's journey from odd jobs to a tea company.
Dropping out of college to pursue entrepreneurial dreams is not an uncommon path, and Steve O'Dell, the founder of Tenzo Tea, followed this route. Steve shared his journey, starting from his volleyball days at UCLA, where his curiosity and passion led him to entrepreneurship. He then started his first business with odd jobs and grew it successfully. Following this, he sold portable chargers online and started an on-demand printing company. Halfway through his senior year, he took a leap of faith and dropped out to start a tea company. Steve's story illustrates that having an entrepreneurial spirit and taking calculated risks can lead to success. Additionally, the Young and Profiting podcast has launched the Yap Society on Slack, a community for networking and providing feedback, sponsored by Compass HQ. Listeners can join by visiting bit.ly/yapsociety and enjoy a discount on Tenzo Tea products using the code 'yap'.
Believing in oneself and following passion leads to success: Believe in yourself, ignore naysayers, and stay passionate to achieve entrepreneurial success
Believing in oneself and taking calculated risks can lead to entrepreneurial success, even without a college degree. The speaker dropped out of UCLA to start Tenzo Tea after discovering the benefits of matcha and experiencing consistent energy. Initially, his decision was met with resistance from his conservative family, but he used their doubts as motivation and followed his heart. The journey was challenging, but with hard work, determination, and a positive attitude, he was able to turn his passion into a successful business. Ignoring the haters and staying true to oneself are essential elements of entrepreneurial success. The speaker's advice is to follow your heart, ignore the naysayers, and be willing to put in the necessary sacrifices. The universe and the world will reward you if you remain passionate and persistent.
The strength of the relationship with your co-founder is crucial for startups: Focus on building a strong emotional connection and trust with your co-founder for effective communication and conflict resolution in startups. Be specific and improve incrementally, rather than expanding too quickly.
When starting a business, the strength of the relationship with your co-founder is crucial. According to the guest, Hala, who has founded multiple companies with a co-founder, the most important quality in a business partner is the strength of the relationship. This is because startups are challenging and disagreements are inevitable. Having a strong emotional connection with your co-founder allows for effective communication and resolution of conflicts. Hala also emphasized the importance of trusting and knowing the person you're starting a business with, as opposed to randomly selecting a business partner. Additionally, Hala shared that the name of their Matcha company, Tenzo T, was chosen for its simplicity, ease of pronunciation, and meaningful connection to Buddhist monasteries. The branding process for Tenzo T was a long journey of incremental progress, with a focus on being specific and doing things truly great before expanding. Hala encouraged young entrepreneurs to focus on making the most of their resources and improving incrementally. Tenzo T started in 2016 and secured $250,000 in seed funding.
Strategically planning and building relationships before seeking seed funding: Secure a small loan, demonstrate sales growth, use a convertible note, and focus on increasing revenue to attract angel investors
When it comes to raising initial capital for a business, it's important to strategically plan and build relationships before seeking seed funding. Seed funding, typically the first round of capital, is often obtained from friends and family or small angel investors. The process can be challenging, especially for those in areas with limited resources. Instead, consider starting with a small loan and demonstrating sales growth before approaching angel investors. A convertible note is a common method for securing seed funding without setting a valuation immediately. Once secured, the priority should be to increase revenue and reinvest in the areas that drive growth. Angel investors are often a better option for early-stage startups due to their ease of working with and their flexibility compared to institutional investors. Remember, the key is to ask for help, put yourself out there, and focus on growing your business.
The benefits of having angel investors: Angels provide financing, expertise, industry connections, and a genuine desire to help startups succeed. They may offer better terms to help the company grow. However, as the startup grows, it may need to seek institutional money. Manage investments effectively using tools like Yahoo Finance and Shopify to grow your business.
Having the support and belief of angel investors can significantly benefit a startup. Angels not only provide financing but also offer expertise, industry connections, and a genuine desire to see the company succeed. They may offer better terms, such as retaining more equity, to help the startup grow. However, as the startup grows and requires larger investments, it may be necessary to seek institutional money. Another valuable takeaway is the importance of managing and keeping track of investments. The speaker shared his experience of using Yahoo Finance to link up all his investment accounts for a unified view of his wealth. This tool offers various features such as stock analyst ratings, independent research, customizable charts, and financial statements analysis, making it easier for investors to make informed decisions. Lastly, the speaker shared his success story of starting his LinkedIn Secrets Masterclass using Shopify. Shopify is a global commerce platform that helps sellers at every stage of their business, from selling their first product to scaling their business. Its easy-to-use features, such as a unified checkout and AI tools, help businesses grow and focus on their core competencies.
Overcoming Financial Instability with Alternative Financing: Despite financial struggles, the founder of Tenzo Teas persevered and turned to alternative financing methods to save his company. He also prioritized social impact by collaborating with The Thirst Project to provide clean water for every bag sold.
Despite facing financial instability and investor withdrawal, the founder of Tenzo Teas refused to give up and instead turned to alternative financing methods to save his company. This experience showcases the importance of resilience, risk-taking, and following one's beliefs. Additionally, Tenzo Teas has a social entrepreneurship angle, where they collaborate with The Thirst Project to provide clean water to one person for one year for every bag sold. The founder chose The Thirst Project due to their proximity, the cool founders, their focus on youth, and the importance of water in making matcha. This simple yet impactful collaboration highlights the potential for businesses to make a positive difference in the world.
Incorporating social entrepreneurship into a business: Social entrepreneurship attracts customers who value clean water, sustainability, and philanthropy. Tenzo Tea, a social enterprise selling matcha, uses this approach to grow while making a positive impact on communities.
Incorporating social entrepreneurship into a business not only makes a positive impact on the world but also helps the business grow. For instance, Tenzo Tea, which sells matcha, uses the philanthropic aspect of providing clean water to communities as a centering piece for their team and a powerful marketing tool. Social entrepreneurship taps into a market of consumers who value clean water, sustainability, and philanthropy, allowing businesses to acquire customers based on these shared beliefs. Moreover, Tenzo Tea's product, matcha, offers a healthier alternative to traditional energy sources like coffee or energy drinks. Matcha, which has been around for centuries, is known for its energy-boosting and health benefits, making it popular among millennials. Consumption methods vary depending on individual preferences, but taking matcha as a shot, similar to an espresso, is a popular choice for those seeking a quick energy boost. Overall, combining social entrepreneurship with a high-quality product like matcha can lead to business growth and a positive impact on the world.
Discovering the Health Benefits of Matcha and Hiring with Indeed: Matcha's antioxidants fight free radicals for various health benefits. Indeed simplifies hiring with 80% perfect matches and 4x more hires.
Matcha, a powdered green tea, offers numerous health benefits due to its high antioxidant content. These antioxidants help fight free radicals, which can lead to various health issues including Alzheimer's, Parkinson's disease, and heart attacks. Matcha is also known for its skin benefits, as some people use it to make face masks for a glowing complexion. For entrepreneurs looking to hire, Indeed is a powerful tool that can help streamline the process by attracting, interviewing, and hiring all in one place. The platform boasts impressive statistics, delivering 80% of employers perfect job applicant matches and 4 times more hires than all other job sites combined. As for the sourcing of matcha leaves for a business, it's a journey of progress that often starts with limited resources and research on the internet. Eventually, building relationships and going directly to the source, such as Kagishima, Japan, can lead to better quality product.
Following your passion leads to unexpected opportunities: Stay true to your interests, conduct market research, and be open to new experiences to capitalize on emerging trends and grow a successful business.
Following your passion and putting yourself out there can lead to unexpected opportunities and success. The founders of Tenzo Tea, inspired by their love for matcha, embarked on a journey to Japan to connect with tea farmers. Through a series of serendipitous events, they ended up creating a proprietary blend of ceremonial grade matcha, which became the foundation of their business. This story illustrates the importance of staying true to your interests, conducting market research to identify growth opportunities, and being open to new experiences. The global matcha market, valued at $2.62 billion in 2016, is expected to grow at a 7.6% compound annual growth rate. To capitalize on this market, Tenzo Tea plans to focus on being the leader online, on Amazon, and their own website, running a great subscription business, and treating customers exceptionally well to build a lasting brand. The founders' success story demonstrates the value of aligning your business with the way the world is moving and riding the wave of emerging trends.
Using Tools to Identify Market Trends: Google Trends can help entrepreneurs recognize market growth and make informed decisions, but having strong mentors and self-belief are equally important for success.
Timing and identifying market trends can be crucial for business success, as illustrated by Steve's experience with MatchaBar and Cha Cha Matcha. He emphasizes the importance of tools like Google Trends for recognizing market growth and making informed decisions. However, Steve also shares that having strong mentors and believing in oneself can provide valuable emotional support and confidence during the entrepreneurial journey. If he could go back in time, he would encourage his past self to trust the path and seek guidance from mentors. To connect with Steve or purchase Matcha products, listeners can find him on LinkedIn or visit 10zot.co.
