The Skill Set of Figuring It Out
Being an entrepreneur means you start solving a problem and just figuring it out. As times go on, you often end up in a much different spot each year in order to keep the company growing. In order to excel in that role as the leader, you have to be able to reinvent yourself, time and time again. And the reality is, many people simply don't want to do that. Will Nitze, Founder & CEO of IQBAR, a brain and body nutrition company, joins us and shares why having a background in psychology, neuroscience, and government may just be all you need to build the next CPG company.
🚀 Running a CPG Company: The Unseen Challenges
Running a Consumer Packaged Goods (CPG) company is incredibly tough and requires a lot of sacrifices, many of which people aren't willing to make. Will Nitze emphasizes that the journey of an entrepreneur in the CPG space is filled with relentless challenges that demand unwavering dedication and adaptability. Unlike the glamorous image often portrayed, the reality involves long hours, constant problem-solving, and an unyielding commitment to the mission.
Nitze’s background in psychology and neuroscience has given him a unique perspective on handling these challenges. His insights into human behavior and mental resilience have proven invaluable in navigating the complexities of running IQBAR. The journey from concept to product shelf is arduous, demanding not just creativity and innovation but also an immense amount of perseverance and sacrifice.
🌟 The Reality of Scaling and Exit Strategies
Scaling a CPG company and achieving that coveted big exit isn’t always the dream it's made out to be. The path to scaling is fraught with obstacles that many entrepreneurs are unprepared for. While the allure of a lucrative exit might drive some, the reality is that the journey can be grueling and disillusioning.
The process of scaling requires constant reinvention and a willingness to pivot as market dynamics change. It's not just about growing bigger; it's about growing smarter. The pressures and stresses of scaling can take a toll, and for many, the end goal doesn’t justify the means. Entrepreneurs need to be prepared for the rollercoaster ride that is scaling, where success is not just measured by the exit but by the sustainability and impact of the business.
💡 Creating Great Products vs. Mastering Unit Economics
Creating great products might seem like the hardest part, but for Nitze, the real challenge lies in mastering unit economics. The scalability of a CPG company hinges on its unit economics—if they don’t work, the company won't succeed, regardless of how innovative the products are.
Nitze underscores the importance of understanding the financial intricacies of producing and selling goods. This involves a deep dive into cost structures, pricing strategies, and profit margins. It's a meticulous balancing act where every cent counts. For IQBAR, ensuring that the unit economics are sound has been pivotal to its growth and sustainability. Entrepreneurs need to have a firm grip on their numbers and constantly seek ways to optimize costs without compromising on quality.
🔍 Finding the Right People
Another significant challenge in building a successful CPG company is finding the right people to support your mission. Identifying individuals who are genuinely aligned with your vision and values is crucial. However, this is easier said than done.
Michael shares that there are subtle clues for finding the right people—traits such as resilience, adaptability, and a genuine passion for the mission. Building a team that embodies these qualities can make a substantial difference in navigating the ups and downs of the entrepreneurial journey.
🔑 Trust: The Cornerstone of Success
Trust is one of the best determiners of successful brand-agency relationships. Building trust requires transparency, accountability, and a willingness to own up to issues. Acknowledging and addressing problems head-on is a powerful way to earn trust and foster long-term partnerships.
Maintaining open lines of communication and being honest about challenges have been key to building trust with partners and customers alike. This approach not only strengthens relationships but also enhances the overall reputation of the brand. Trust is earned through consistent actions and a commitment to integrity, and it plays a pivotal role in the sustained success of a CPG company.
📢 Conclusion
Will Nitze’s journey with IQBAR is a testament to the resilience and adaptability required to succeed in the CPG industry. His unique background and insights offer valuable lessons for aspiring entrepreneurs. Follow our page and watch the full episode 12 conversation here to gain more insights from Will Nitze and other industry leaders. Let’s embark on this journey of figuring it out together! 🚀