Podcast Title: How I Built This with Guy Raz
Episode: Advice Line with Brian Scudamore of 1-800-GOT-JUNK?
Release Date: November 7, 2024
Host: Guy Raz
Guest: Brian Scudamore, Founder of 1-800-GOT-JUNK? and CEO of O2E Brands

Introduction to the Advice Line

In this episode of How I Built This, host Guy Raz is joined by Brian Scudamore, the dynamic founder of 1-800-GOT-JUNK? and CEO of O2E Brands. Together, they tackle real-world business challenges sent in by listeners through the show's Advice Line. This segment serves as a practical masterclass in entrepreneurship, addressing issues ranging from strategic focus to effective marketing.

Caller 1: Teresa from F L O U W E R

Business Overview:
Teresa is the co-founder of F L O U W E R, a Denver-based food and lifestyle brand that integrates edible flowers into everyday products such as crackers and cocktail cubes. Her flagship product, a beautifully crafted cracker, has garnered attention for its unique flavor and aesthetic appeal.

Teresa's Challenge:
As F L O U W E R enters a new phase of growth with the acquisition of a co-manufacturer, Teresa faces a strategic dilemma: Should the company focus on expanding its cracker line within the grocery sector, or diversify into other product categories like cocktail sugars and candles?

Key Discussion Points:

1. Focus vs. Diversification:
   Brian advises caution against over-diversifying, drawing parallels to 1-800-GOT-JUNK?'s experience where expanding into unrelated services diluted the brand's core competency.

   Brian Scudamore [07:02]: "Customers vote with their wallets. And by far and away, it was junk removal. So we narrowed our focus and said, we are going to be the world's largest junk removal company, and that's all we're going to do."

2. Testing and Validation:
   Teresa considers using her Denver brick-and-mortar store as a test market to gauge customer preference for various products before a full-scale launch. Brian emphasizes the importance of minimal investment in testing multiple ideas to identify what resonates most with customers.

   Brian Scudamore [16:16]: "How do you test a bunch of different things lightly, without a big investment to figure out what are customers voting for with their wallets?"

3. Brand Identity and Storytelling:
   Brian highlights the significance of maintaining a strong, focused brand identity. He suggests that F L O U W E R should emphasize its unique cracker line, which not only aligns with its origins but also offers a clear, compelling story to consumers.

   Brian Scudamore [19:02]: "Own it. Own it. You're a cracker company."

Conclusion for Teresa:
Focus on strengthening the core cracker product, leveraging the new manufacturing capabilities to enhance production efficiency and scale the business. By prioritizing the flagship product, Teresa can build a more robust and recognizable brand before considering further diversification.

Caller 2: Jake Pressman from Notion Skincare

Business Overview:
Jake Pressman is the founder and CEO of Notion Skincare, a Los Angeles-based company offering a high-quality powder-based face cleanser. The product is sustainable, travel-friendly, and customizable, allowing users to adjust the cleanser's texture by varying the amount of water used.

Jake's Challenge:
Jake is struggling to identify his target customer and craft effective messaging for his advertising campaigns. He is torn between positioning Notion Skincare as a travel essential or as a customizable skincare solution.

Key Discussion Points:

1. Defining the Unique Value Proposition (UVP):
   Brian encourages Jake to clearly articulate what sets Notion Skincare apart, emphasizing the customizable nature and high-quality ingredients as key differentiators.

   Brian Scudamore [28:34]: "Just for you, Jake, as you probably know... [Define] what is the real benefit here."

2. Target Audience Identification:
   Brian suggests leveraging influencer marketing to gain insights into different demographics. By sending products to micro-influencers across various segments, Jake can gather authentic feedback on which messaging resonates best.

   Brian Scudamore [32:20]: "Send them the product and say, could you do me a favor? Do me a video... find out what stood out for you."

3. Strategic Marketing Approaches:
   Jake considers targeting frequent travelers, highlighting the product's compliance with TSA regulations as a unique selling point. Brian agrees that this niche market could benefit from Notion's travel-friendly features.

   Jake Pressman [34:18]: "I have definitely, every time I've been traveling now, I've taken a video of the product going through the TSA belt."

4. Leveraging Local Opportunities:
   Given Notion Skincare's location in Los Angeles, Brian recommends collaborating with boutique hotels and luxury establishments to feature the product, thereby tapping into a trend-sensitive and influential customer base.

   Brian Scudamore [35:07]: "New York, too. ... experiment with some of those boutique hotels."

Conclusion for Jake:
Focus on cementing the brand's unique identity by honing in on the customizable aspect of the product. Utilize targeted marketing strategies, such as influencer partnerships and collaborations with boutique hotels, to effectively reach and engage the ideal customer demographic.

Caller 3: Theo Alex Dean from Fox and Hen Fine Poultry Company

Business Overview:
Theo Alex Dean operates Fox and Hen Fine Poultry Company in Shingle Springs, California. He specializes in raising juvenile chickens and selling them directly to backyard hobbyists, offering convenience and expertise compared to traditional hatcheries.

Theo's Challenge:
Having relaunched his business after a challenging initial run, Theo seeks guidance on identifying the optimal moment to scale operations by hiring additional staff or outsourcing tasks.

Key Discussion Points:

1. Assessing Business Scalability:
   Brian advises Theo to analyze the revenue versus time invested. By identifying tasks that are time-consuming and can be delegated, Theo can focus on the core aspects of his business that drive growth.

   Brian Scudamore [46:32]: "Your time is worth a thousand bucks an hour... look at all the things you're doing... start delegating."

2. Strategic Hiring:
   Brian recommends starting with temporary contracts to test the efficacy of new hires before committing to full-time positions, especially considering California's stringent labor laws and high minimum wages.

   Brian Scudamore [47:04]: "Bring somebody in on a one-month contract and see how that goes."

3. Learning from Failure:
   Theo reflects on his past experiences, acknowledging that early failures provided valuable lessons that inform his current approach to scaling the business responsibly.

   Brian Scudamore [50:31]: "If I had just been successful out the gate, I would have just been looking at a bigger failure down the road."

Conclusion for Theo:
Carefully evaluate the financial and operational aspects of scaling. Begin by delegating non-core tasks through temporary hires to free up time for strategic activities. Embrace past failures as learning opportunities to make informed decisions that support sustainable growth.

Key Takeaways and Insights

• Focus on Core Competencies:
  Expanding too broadly can dilute a brand's identity and confuse customers. It's crucial to excel in the primary area before venturing into new territories.

• Customer-Centric Testing:
  Utilize existing platforms, such as brick-and-mortar stores or influencer partnerships, to test new products and gather feedback before a full-scale launch.

• Effective Delegation:
  As businesses grow, identifying tasks that can be outsourced or delegated is essential for scaling without compromising quality or overextending resources.

• Leveraging Unique Selling Points (USPs):
  Clearly defining and communicating what makes a product unique helps in targeting the right audience and differentiating from competitors.

• Learning from Experience:
  Embracing failures and using them as stepping stones fosters resilience and informed decision-making in entrepreneurial ventures.

Notable Quotes

• Brian Scudamore on Focus:

  "Customers vote with their wallets. And by far and away, it was junk removal. So we narrowed our focus and said, we are going to be the world's largest junk removal company, and that's all we're going to do."
  [07:02]

• Brian Scudamore on Testing Ideas:

  "How do you test a bunch of different things lightly, without a big investment to figure out what are customers voting for with their wallets?"
  [16:16]

• Brian Scudamore on Effective Delegation:

  "Your time is worth a thousand bucks an hour... start delegating."
  [46:32]

• Brian Scudamore on Learning from Failure:

  "If I had just been successful out the gate, I would have just been looking at a bigger failure down the road."
  [50:31]

Conclusion

In this episode, Brian Scudamore provides invaluable advice to budding entrepreneurs grappling with common business dilemmas. Whether it's maintaining a focused brand identity, effectively targeting marketing efforts, or recognizing the right moment to scale operations, Brian's insights drawn from his extensive entrepreneurial experience offer actionable strategies for sustainable growth and success.

Listen to the full episode on Wondery