« Side Hustle School

#511 - Coffee Lovers Brew Quick Fix Into $1 Million Hustle

2018-05-26

While training for a 24-hour obstacle course challenge and working full-time, two GM employees turn cold brew into a moneymaking energizer. 

Side Hustle School features a new story EVERY DAY of someone who started a hustle without quitting their job. You’ll learn how they got the idea, how they overcame challenges along the way, and what the results are.  Share: #SideHustleSchoolShow notes: SideHustleSchool.comTwitter: @chrisguillebeauInstagram: @193countries 

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Hello. I welcome to sawdust school. This is your host critical about approaching the end of a weak episode. Final for you here in a talk about making and marketing a beverage, and this is no small challenge. Not just the making of it. But, as I said, the marketing- and we ve seen this done before a few other episodes of people making beverages. But generally, this kind of thing falls in the category of. If you can do anything else. Why not look at that idea? First, at least if you're trying to grow business. That doesn't require a lot of risk, not about foreign investment a lot of uncertainty in all of the things. I generally try to encourage you to avoid, but still, if you have a calling to make called brew coffee, like the general males, employ
flash endurance athlete you'll hear about it today, story. What can you do but answer that calling so while training for a twenty four hour obstacle course challenge in working full time. This employee turns cold, grew into a money making energize her. Let's say a quick thanks today sponsor and then on with the story. After the courses are fun, they offer exercised a challenge and a moment of light hearted titian. Twenty four hour obstacle course is. On the other hand, our serious business Alex Ranch, a corporate employee for general males was training for one of those insane day long courses between training and work. He basically had no free time and needed frequent energy boosts Alex in its train. Harder. Andrew Healy started brewing large batches of Colebrook Coffee, wherever they could find a few moments here and there by immersing coffee grounds and cold
for twelve or more hours. They can create a rich, smooth, cold brew, concentrate that they could dilute with water whenever they needed a boost. It was simple, affordable and much healthier than the energy drink alternatives that they'd seen on store gives a few months after that legendary twenty four hour race, Alex and Andrew came up with an idea. What, if they could streamline, are called brewing process to make the beverage accessible to other people low on time, but who still wanted to enjoy good coffee with jobs in the marketing Department of General Mills Alex and Andrew, had access to data and lots of it in early twenty fourteen, they noticed that the cold brew coffee market appear to be at the beginning of a huge biking. Growth sales were picking up or other companies. New products were being one so they thought it was time to jump into the black gold rush and they did in homage to how busy they both were when they are working full time and training for the optimal course. They decide to name the company busy coffee like
eyes easy. Why, or I should say be. I doubles at why, for some of our international listeners, clobbering at home was a technical affair. They would try various ratios grind sizes. They even collected a drawer full of seeds. They could narrow down their copy grounds to a specific, uniform size, just the right when you say that word by the way, sheaves now that I've said that I'm just gonna go with it the whole trick. Any situations is to protect confidence. It receive very go right. Next Alec started looking at how they could source their coffee beans. There are dozens of coffee roasters in Minnesota, where they lived in Alex had a pretty easy time, finding one interested in partnering being the busy pair that they were, they opted to use a co packer a company that would create an bottle. The culprit using Alex and Andrews Coffee to create the consistent cobra they were looking for. This ended up being the most difficult and frustrating part of the process. They didn't need to cut back or to be local, but even so they travel.
All over the country and weekends meeting with potential partners and looking at finances, it was exhausting any was expensive. Some of the cup hackers even charge them for a short consultation by the time Alex Andrew found a certified organic compactor. In early twenty fifteen, it was willing to do smaller. More frequent production runs to preserve the freshness of the coffee. They were almost out of cash. They had a coffee source that a co packer they had found a print
for their labors, and they had established the LLC, but they didn't have enough money for their first production run and without money to actually create their product. Busy coffee was on the verge of a major caffeine crash Alexander apply to participate in a food and beverage accelerator called food acts. If they were accepted, the accelerator would invest money in the business and give them training and consulting to help. Get things going, food ex call back with good news and bad news. The good news was they like their idea, the bad news was they asked Alex and Andrew to move to New York City right away. It was an incredible offer, but the timing wasn't right for them to pick up and move their families so feeling disappointed they declined and began to consider shelving busy coffee want lamp. Within six months later, food ex called it. And ask if they were still interested the time and the situation has changed for both Alex and Andrew this time, both families were ready for a big move. They each submitted their letters of resignation that weak, packed up and moved to New York with the support of food,
able to create a fully functioning e commerce store. They also hearts and contract help to get things set up for other platforms, like Amazon may put any order for their very first run of bottled, cold, grew coffee and may twenty six in busy coffee launched via its own website and on Amazon dot com with sixteen out bottle of Colbert Concentrate price at nine dollars with might have taxes. Marketing know how behind em busy generated a few thousand dollars that month by the end of June, they had reached ten thousand dollars and sales and by the aid of twenty sixteen outer just six months busy had generated a hundred thousand dollars and sales. They attribute their rapid growth, mainly to Amazon. By targeting so civic, such terms in their practice, exceptions busy was able to generate a lot of organic search traffic and allow sales, owing whenever Buzzfeed mentions busy like they have three times so far. They see nearly five hundred percent spike in sales. For that day, outside of Amazon, things didn't work out so easily at least not at first. They try to influence your marketing, but I didn't seem consists in a profitable various e commerce tricks didn't have
Impact they thought they would. They discover that, with the exception of Amazon, dot com people, usually by beverages in retail stores, not online by increasing their size and reducing the price they were able to be more competitive and stores. This eventually led to producing a lot more cold brew, which meant a lot lower production costs, which they meant those lower price bottles were all of a sudden, profitable passport when he eighteen busy coffee has now generated over one million dollars and sales since its launch two years ago. An found in over a thousand retail stores across the nation, and Alexander aren't done. They did want to spell too many beans about the upcoming plans, but there said to be burning up three new products over the next few months,
we ask about the long term goal. Alex said he just wants to be the leading Colebrook Coffee Brand, a big challenge for sure, but don't bet against a guy who runs twenty four hour obstacle courses, okay, so this is one of the few stories we feature in which it really is difficult to grow, this kind of business without some kind of outside funding or stand shall help like in the form of the food accelerator. These guys found. So, as I said in a beginning like if you have an idea to do something like this, and you can do anything else at all like if you got three ideas and to them Simpler, what do one of those other ideas? Ok, because remember that satisfy school is not about quitting your job to take a big risk. My perspective is that there are all kinds of things you can do to make money so any
since of one feeling like your calling or your mission, of the thing that you have to do. Why not choose the one, it's the simplest or the most likely to see results quicker and really, above all else, the one in which you can say. Okay, if it doesn't work out the worst case scenario, isn't that bad I'll just try something else. Not that set in this story. I think they took a measured risk
case, I want to talk about reducing risks like there are things in life. We do that a risky and when you believe in something you're willing to commit to add you ve done a lot of research. You think like this is what I have to do well, then, that it is a measured risk like it something that you should pursue. So in this case, these guys worked on the project for a long time on their own and then the first honey accelerator asked and quit their jobs and moved to New York City. They said no, but then later the time was right. So I had this weekly recap recently when I talked about the right time to quit a good job. In this case, the right time came with the second ask the first time it wasn't right, the second time it was so, generally speaking, I think the right time to quit. The good job is right before you, tired of it. I'm not saying you have to walk away with no security in this case again measured risk. They ve got his accelerator that investing in them they had a background in food and beverage. They really believed in the product.
And so they went for it and it's not to say that it could have been a failure because, obviously it could have been, but sometimes in life. If you believe in something you have to go for it, and here in this case we can say: ok, they learn some lessons. They adjusted as they went along like I always encourage people to do, and now we are what two years after they done more than a million dollars. So far when it made a million dollars and profit, because in the food in beverage ruled by profit, margins tend to be relatively loves. You have all these different costs. The coffee resting a co packing the distribution of that kind of stuff itself to be successful. We need to have sales of at least that level further and more than a thousand retail stores are introducing three new flavors made definite sounds like they. Ve made the right choice. They ve got a good thing going up, congratulate him good work, oxen Andrew I wanna check out and busy coffee on Amazon or corruption, one of my local retail stores. Maybe you should do if you want to learn more about how they may this happen, maybe check it out for yourself just come today show no
Those are online at site. Us will score dot com, slash five eleven five on one may miss Cristel about don't forget. Inspiration is good, but inspiration with action is so much better if we re caps, I've got another one coming up for you to Morrow and then a whole new set of stories next week. Thank you for drawing me. Don't forget to do something for yourself today. This is a friendly reminder from sight o, so small.
Transcript generated on 2020-08-05.