How I Built This with Guy Raz - Advice Line with Brett Schulman of CAVA (July 2024)
The episode features Guy Raz and Brett Schulman discussing business challenges with entrepreneurs. Devin Strahan shares his journey of creating a spiked root beer business after a career pivot. He faces imposter syndrome and logistical challenges in scaling his business. Brett advises on focusing strengths and seeking mentorship. Sophia Bowden, founder of Little Me Allergy, seeks advice on expanding her niche allergy accessories business. The discussion emphasizes leveraging partnerships and exploring retail opportunities. Sean Murray of Rootless Coffee Company discusses growth funding and scaling strategies. Brett highlights the importance of focusing on core business channels and seeking experienced advisors. The episode underscores the value of perseverance, strategic focus, and leveraging networks for business growth.
Key Points:
- Focus on core strengths and prioritize business channels for effective scaling.
- Seek mentorship and advice from experienced business leaders to navigate challenges.
- Leverage partnerships and collaborations to expand market reach.
- Explore retail and trade show opportunities for niche products.
- Perseverance and strategic focus are crucial for overcoming business challenges.
Details:
1. 🔊 Wondery Plus Introduction
- Wondery Plus subscribers have the advantage of accessing 'How I Built This' episodes earlier than non-subscribers.
- Subscribers can enjoy an ad-free listening experience, enhancing user engagement.
- Wondery Plus is accessible via the Wondery app or Apple Podcasts, providing multiple platform options for users.
2. 🧠 AI and Grammarly as a Writing Partner
2.1. Grammarly's Versatile Writing Support
2.2. Security and Suitability for Business
3. 🏆 NerdWallet's Financial Product Awards
- NerdWallet reviewed over 1,100 financial products, including credit cards and savings accounts, to identify the top options available.
- The 2025 Best of Awards presents a curated list of the best financial products, saving consumers time and effort in researching options.
- The awards aim to simplify the process of selecting financial products by providing a pre-evaluated list of the best choices.
- The evaluation criteria included factors such as customer satisfaction, financial benefits, and unique features offered by each product.
- Examples of categories reviewed include credit cards with the best rewards, highest interest savings accounts, and most user-friendly budgeting apps.
4. 🏃♂️ Fitness and Health with Lingo
- Lingo is a bio-wearable device that measures glucose levels from the back of your arm, helping to understand your body's response to food and improve metabolism.
- Available without prescription, starting at $49 for a two-week plan, with a 10% discount using code H-I-B-T at hellolingo.com.
- The device is considered a game changer in fitness for its ability to provide real-time metabolic insights, enabling personalized dietary adjustments.
5. 💌 Klaviyo's Digital Marketing Solutions
- Klaviyo offers a comprehensive digital marketing platform that integrates email, SMS, and review functionalities, enabling businesses to create cohesive marketing strategies.
- The platform is designed to enhance customer engagement by providing tools that allow businesses to build smarter and more personalized digital relationships.
- Klaviyo's emphasis on 'making every moment count' highlights its focus on optimizing customer interactions for better retention and satisfaction.
- For detailed insights and case studies on how businesses have successfully utilized Klaviyo's features, visit klaviyo.com.
6. 🎉 Holiday Greetings and Advice Line Intro
- Brett Shulman, co-founder of Kava, offers crucial insights into overcoming business scaling challenges, emphasizing strategic growth and adaptation.
- Listeners are encouraged to internalize New Year's themes, focusing on personal and professional development, resilience, and optimism.
- The episode underscores the importance of embracing continuous learning and joy as foundational elements for success in the upcoming year.
- Shulman's advice includes practical strategies for navigating common pitfalls in business expansion and fostering an environment conducive to growth.
- Concrete examples from Kava's own journey illustrate how strategic planning and adaptability can lead to significant improvements in operations and revenue.
7. 📞 Brett Schulman on Business Growth
- Guy Raz introduces a platform for solving business challenges through personalized insights from legendary founders, such as Brett Schulman.
- Listeners can call 1-800-433-1298 or send a voice memo to receive tailored business advice.
- The platform addresses specific business issues, offering strategic advice on challenges like scaling operations or improving customer engagement.
- Sign up for a newsletter at GuyRoz.com to receive curated insights from world-renowned entrepreneurs, enhancing your business growth strategies.
8. 💡 Overcoming Imposter Syndrome in Business
- Brett Schulman, co-founder of Kaba, successfully scaled the business from a single sit-down restaurant to a chain of hundreds of fast casual restaurants by leveraging the growing consumer interest in fresh and healthy food.
- The transition to a fast casual format was a strategic decision aimed at making fresh and healthy food more accessible to a larger audience, which was identified through careful market analysis and understanding customer needs.
- Listening to customer feedback and aligning with market demand were key components in identifying opportunities for expansion.
- Effective prioritization was crucial in the scaling process; Schulman emphasized that choosing what not to do is as important as choosing what to do, thus focusing on the company's strengths and core competencies.
- The strategic decision-making involved in scaling included evaluating market trends, customer preferences, and the competitive landscape to ensure the business's growth trajectory aligned with its goals.
9. 🌟 Scaling a Business and Focusing Resources
- Devin Strahan transitioned from being a private chef and owning a healthy muffin company to creating spiked root beer after being inspired by the craft beer market.
- Devin's previous business experience included running a muffin company for 13 years, which closed down when a major client went under, leading to significant financial changes.
- His entrepreneurial spirit was reignited while working at a liquor store, influenced by the creativity in the craft beer market despite not being a beer drinker.
- The concept of spiked root beer was developed as an innovative product catering to both his and his children's love for root beer, converting it into an adult beverage.
10. 📈 Marketing Strategies for Niche Products
- The business initially began with home experimentation, transitioning into a wine-based product to navigate regulatory challenges more easily.
- A strategic pivot led to the development of a diverse range of eight root beer-based flavors, including popular variants like dark cherry and pumpkin vanilla, catering to niche market preferences.
- Despite scaling to 160 locations primarily in Houston and Austin, the business faces operational hurdles due to personnel constraints, highlighting the need for strategic workforce planning.
- A finance-focused partner joined as an equity partner to streamline financial and administrative operations, illustrating the importance of aligning operational efficiency with business growth.
- Inventory and marketing bandwidth challenges persist, necessitating strategic planning to align supply with growing demand.
- Capital raising efforts are underway, with investor interest indicating growth potential, though the lack of an established track record with new outlets presents a challenge.
- The business's marketing strategy focuses on leveraging niche product appeal and regional expansion to capture market share, while addressing operational and financial constraints through strategic partnerships and capital infusion.
11. ☕ Rootless Coffee Company: Growth and Funding
11.1. Growth and Overcoming Challenges
11.2. Strategic Insights and Future Directions
12. 🤝 Building a Support Network and Seeking Advice
12.1. Challenges with Co-Packers and Financial Transparency
12.2. Overcoming Adversity and the Role of Support Networks
13. 🔄 Navigating Challenges and Perseverance
- Tara Bosch founded Smart Sweets, a low-sugar candy brand, at the age of 21 after dropping out of college with no financial resources. She applied for every competition and business grant available to build her brand, highlighting a proactive approach to resource gathering.
- Despite experiencing imposter syndrome and fear in business meetings, Tara persevered by developing emotional resilience and maintaining focus on her goals.
- The discussion highlights that facing self-doubt and overcoming challenges is a common experience in entrepreneurship, suggesting that aspiring entrepreneurs should prepare for emotional hurdles.
- Overconfidence is identified as a risk factor that can lead to poor decision-making, emphasizing the importance of balanced self-assessment in business. It suggests that entrepreneurs should regularly evaluate their decisions critically to avoid overconfidence traps.
- The outcomes of Tara's perseverance are demonstrated in the growth and recognition Smart Sweets achieved, marking significant milestones such as launching in major retail stores and generating substantial revenue growth.
14. 💼 Trade Shows and Expanding Market Reach
- Athletic Brewing Company targets health-conscious consumers by marketing its non-alcoholic brews as a post-exercise choice, highlighting their great taste and variety.
- They emphasize digital engagement by directing consumers to their website to locate products, enhancing accessibility and convenience.
- With only 8% of people maintaining their resolutions, Athletic Brewing sees an opportunity to support sustainable habits through their products.
- The company suggests forming long-term consumer habits similar to Acorns' financial planning approach, aiming for integration into daily routines.
- By drawing a parallel to Airbnb's model of leveraging assets for income, they potentially hint at maximizing product utility and market reach through innovative strategies.
15. 📊 Leveraging Partnerships and Social Media
15.1. Introduction to Little Me Allergy
15.2. Expanding Marketing Reach
16. 📈 Growing a Business: Insights from Brett Schulman
- The business idea originated from a personal need when Schulman's daughter was diagnosed with a severe sesame allergy, prompting the need for allergy accessories that were not cold or clinical.
- Schulman designed allergy accessories like stickers and bracelets that are both functional and visually appealing to ensure her daughter's safety in various environments.
- These products serve as an advocacy tool for young children who cannot communicate their allergies effectively, providing peace of mind to parents.
- The business launched in July 2023, focusing on creating a range of products like waterproof stickers and rubber bracelets to alert others of a child's allergies.
- These accessories provide a practical solution for parents, enabling them to feel confident that their child's allergy information is clearly communicated at places like school or camp.
17. 🔄 Strategic Focus and Prioritization
- The business operates as a side hustle, allowing flexible work hours in the evenings, supported by a full-time tech job.
- All artwork is designed in-house with a focus on the top nine allergens and customizable designs for multiple allergies.
- First-year sales remain below $25,000, indicating room for growth, but the brand receives positive feedback from its niche audience.
- Strategic partnerships have been established with brands like Planet Box and Abe's Allergy Friendly Muffins to enhance visibility and leverage complementary products.
- These partnerships aim to increase brand visibility by integrating products, such as using magnets on metal bento boxes, creating synergy in the market.
- Initial product searches for allergy accessories revealed a gap, with few companies appearing in Google searches, indicating an opportunity for increased market presence.
18. 💡 Advice on Raising Capital and Business Strategy
- The allergy-friendly product market is fragmented, with many individual makers on platforms like Etsy, indicating a demand for cohesive kits or collections that simplify the shopping experience for parents.
- Currently, there are no comprehensive solutions available for parents to purchase all allergy-friendly school items in one place, presenting an opportunity to develop a unified product line.
- With a significant portion of the population affected by allergies, this issue is mainstream rather than niche, suggesting a substantial potential customer base.
- To expand market reach, exploring non-traditional sales channels such as gift trade shows and gift shops is recommended, as these venues align with showcasing unique and practical products.
- The strategy should prioritize creating a product line that avoids the clinical and stigmatizing design of existing options, appealing to parents looking for practical yet aesthetically pleasing solutions.
19. 🤝 Finding Mentors and Building Support Systems
- Leveraging physical retail locations can be an effective strategy for increasing brand awareness, especially post-pandemic as the cost of online acquisition has risen.
- Engaging with trade shows is recommended to understand the industry landscape, distribution avenues, and to find potential fitting for products, as evidenced by the snack food company experience.
- Targeting specific retail spaces, such as allergy-friendly sections in stores like Target, can help reach the right consumer demographic, particularly for products addressing allergy concerns.
- Physical presence in bricks and mortar locations can enhance visibility in the face of digital privacy law changes that restrict online awareness capabilities.
- A case study of a snack food company showed significant growth after participating in multiple trade shows, which helped them connect with key industry leaders and mentors.
- Physical retail locations not only boost visibility but also facilitate direct consumer feedback, aiding in product development and refinement.
20. 📈 Scaling Up: Challenges and Opportunities
- Retailers like Target conduct small market tests in 30, 50, or 100 stores, offering a viable opportunity for new product pitches through cold emailing the right contacts.
- Marketing to children requires careful consideration of regulations, and strategies should focus on appealing to parents through co-listening opportunities, as children may not distinguish between content and ads.
- Building a dedicated community or 'tribe' of at least 1,000 loyal followers can serve as a powerful marketing force multiplier.
- Personal experiences, such as managing severe allergies, can drive community engagement and word-of-mouth promotion among parents.