The Entrepreneurship of Cider
The Great Lakes International Cider and Perry Competition, or GLINTCAP, took place last week in Grand Rapids, Michigan. Due to the number of projects currently in motion at EntrePartners, I was unable to attend this year. I usually serve as a steward at this competition, making sure the beverage samples make it to the judges in a timely and professional manner. It’s one of the highlights of the spring when I’m able to attend, and I hope to return next spring (with a completely finished Cider Finder app.)
I got to thinking this week about the similarities between entrepreneurship and cidermaking. Yes, running a cidery is entrepreneurial – every small business shares that trait. Creating the cider to sell at that cidery also shares many of the fundamentals that early-stage startup founders should follow on the road to success.
A Strong Foundation Matters
Cidermaking and startup founding both involve certain founding principles. In both cases, you start with an amazing idea and bring together people to help you execute on the idea. In cidermaking, you need a team to help you pick the apples and press the juice. In a startup, you need a team with skills complementary to yours. You have to follow certain rules in the beginning of the process in order for things to turn out correctly. With cider, you have to store the juice in certain types of containers and use certain types of tubes to move liquid between containers. In the world of startups, you must register the company, obtain a tax number, and draw up an agreement between founders regarding details of the business.
Straying from the path during this stage of cidermaking and startup foundation can be fatal. Letting contaminants into early-stage cider can make the beverage unpalatable and unable to be fixed later in the process. Working without any kind of agreement regarding equity split and intellectual property rights can lead to irreconcilable issues and lawsuits if the startup suddenly takes off. It’s better to create a strong foundation at the start rather than letting issues fester until it’s too late to change course.
Creativity Is Great, But Listen To Your Customers
Ever had a jalapeño cider? I have, and I really didn’t like it. While a jalapeño cider is something that some cider enthusiasts enjoy, most do not. Likewise, that cool piece of technology that you and your engineer buddies are building in the garage might be something you like, but it does not solve a problem for anyone. A handful of people might be willing to buy it because they like technology, but it will forever stay a niche product.
Startups, and by extension cider startups, would not exist if not for the creativity of the founders. However, the cardinal rule of a business is to make money. If you’re creating something for the sake of creation, it’s a hobby or it’s art. If it solves someone’s problem and they’re willing to give you money for it and can repeat this process, you have a business. Also, making the cider itself has the same process as a startup – you start off by making what you like and expand by making things other people like. If your beverage quenches thirst, pairs well with a meal or conversation, and people continue to purchase the cider, you’re solving problems and making money.
On the other hand, if cans or bottles of your product aren’t moving, it’s not solving a problem. Perhaps you made too much of the previously mentioned jalapeño cider that too few people enjoy. Maybe you didn’t stick to the fundamentals, and there are major defects in your product. There may be too many competitors in the market. Talk to your customers and your consumers before it’s too late.
Success Requires Vigilance
“Set it and forget it” doesn’t apply to early-stage startups or to early-stage cider. You must be aware of both external and internal issues. Startups need to figure out who their competitors are and how they are failing to solve problems for their customers. Startups must also solve any team or employee problems quickly – letting problems grow larger is not something an early-stage company can handle. Cidermakers must keep an eye on their new ciders during primary fermentation – taking measurements and ensuring no oxygen contamination occurs. Care must be taken when moving liquid between containers, and depending on the style of cider being made, making sure the containers being used are strong enough to contain the product.
In both cases, the road to success is littered with the remains of those who lost focus. Nobody founds startups or becomes a cidermaker because the hours are amazing. In both cases, only working 40 hours per week is the goal. The reality looks more like 60-80 hours per week when things are just starting, if not more. This isn’t forever, though – as things begin to grow, you should be able to scale back your hours, intervening when necessary. Both cider and startups take some time to mature.
In The End, It’s About Having Fun
The thing that I’ve found in my decade of entrepreneurship and nearly as long in the cider world is that the folks most committed to their craft are those who would do the work for free. When first honing their skills, many cidermakers started out as homebrewers, doing the work because they love it and wanted to improve their skills. The best startup founders are those who want to solve problems for others, no matter how much they make. It’s about having fun and improving yourself while making the world better for others.
The payoff is well worth the wait, both for cider and for your startup. If you’re working on both at the same time, you’ll have a great beverage to celebrate your eventual startup exit.