Million Dollar Grind

A few years back it was my New Year’s resolution to stop drinking coffee and start drinking tea.  This resolution was a big deal, since I woke up every morning craving a cup of coffee.  It wasn’t until I discovered the Might Leaf tea line that my craving for coffee in the morning subsided.

With its pretty packaging and creative names, I forked over $9 for a box of Green Tea Tropical and instantly developed loyalty to the brand.  What set the tea line apart from its competitors was the rich flavor and freshness of the tea, which was made possible by the innovate Mighty Leaf tea pouch.  Unlike other tea bags that are made of paper and sealed with glue or staples, Mighty Leaf’s pouches are made from silk mesh stitched with natural cotton thread.  The tea pouch is also 100% biodegradable.

Founders Jill Portman and Gary Shinner didn’t automatically step into the luxury tea market.  They created it, after failing at their first attempt in the tea business. Their initial business idea was to create a Starbucks type retail outlet for tea.  Without any retail experience, Jill applied at a Starbucks and worked there for three months to gain the training required to run their tea cafe.   Armed with the knowledge from Starbucks and the passion for tea, the couple quit their day jobs and opened Tea & Co in 2000 with $200, 000 from their personal savings and $200, 000 from their family.

When Tea & Co shut its doors Gary and Jill did not give up, instead they pursued the tea business by pitching their tea line to high end hotels and fancy restaurants. This marketing strategy proved successful and branded Mighty Leaf as luxury tea. In 2006, Mighty Leaf’s sales reached $13.5 million.  The following year,  sales rose 27% to $16.5 million. Today 17,000 hotels and restaurants and 6,000 food stores carry Mighty Leaf teas.

I’m thankful that Jill and Gary did not give up on their mission to deliver high quality tea, because I would have never discovered the luxury of tea.  Failures can lead to success when you’ve got determination on your side.  How many failures could you take before giving up?

What is the first thing you need to start a business?  If you answered money, you answered correctly.  There are so many creative ways to finance a business.  Some people turn to their family and friends for financing.  Other people take out loans, apply for government grants, or even seek out venture capital.  Darryl Haley didn’t have to do any of the above to finance his business.   Instead, he saved the money he earned from his first career and used it fund a business based on his passions.

Darryl Haley began his football career at the University of Utah.  After graduating with a degree in Commercial Physical Education and a minor in Marketing, he was drafted into the NFL as an offensive tackle for the New England Patriots.  Like most professional athletes, he received a couple million dollars for signing and another few million as a salary.  However, instead of taking the multimillion dollar yearly salary, Darryl asked for $40,000/year and deferred the rest (including the signing bonus) until he knew how to make the money work from him.  Instead of buying a large house or fancy cars, Darryl rented a one bedroom apartment and drove an Audi.  After eight years with the NFL, Darryl retired with a plan to live his life based on his passion for fun, fitness and romance.

In 2002 Darryl opened the first bed and breakfast of The Villa Bella Vista Inn.  The second house was built in 2003 and the third house was built in 2005.  Darryl sold the third house to a guest who fell in love with the house and its surroundings.  When you are surrounded by the beautiful scenery of the Shenandoah Valley how could you not fall in love?

Darryl discovered the location for the bed and breakfast while he was training for the Iron Man Triathlon.  He envisioned a bed and breakfast to serve as a romantic getaway or fun vacation spot that people can enjoy and customize to meet their own idea of “escape”.    Guests who visit the Inn range from fitness enthusiasts to musicians.  80% of the guests are repeat customers.  Aside from the beautiful and peaceful setting the guests probably come back for breakfast, which is cooked and served by Darryl himself.  Darryl is also the housekeeper, maintenance man and receptionist.  He enjoys running the bed and breakfast that he hardly considers it “work”.

Darryl’s mentality to “pay the fiddler now to relax later” has allowed him to live a life that he loves and is true to himself.

So if you’re stuck working for the “man” and hate your day job, ask yourself this:  When will you pay the fiddler?  Now or later?  If you’re spending more time thinking of a better job than you are working for the “man” you might consider taking a few pages out of Darryl’s book.  Statistics show that it takes a small business roughly two years to turn a profit.  Instead of working for the paycheck, why not make the paychecks work for you?  Save enough from your first career to fund your next career and then take the plunge to start your own grind.

It’s no secret that our economy is currently in the slumps.  Although the gas prices have started to come down a bit, foreclosures are still at an all time high and the unemployment rate is steadily increasing.  With the election of a new President the expectation for change is high, but patience is low.  Many Americans are facing financial challenges and are starting to curb their spending habits.  For example, shopping for new clothes has become a luxury for many people.  Instead of shopping at the mall or boutique shops, many people are turning to consignment stores that carry the latest fashion tends at a bargain price. [Read more →]