Kreatures Of Habit Podcast
Episode: "What's Really Happening?" EP 8
Release Date: October 18, 2024
Host: Michael Chernow

Introduction

In Episode 8 of the Kreatures Of Habit podcast titled "What's Really Happening?", host Michael Chernow engages in an insightful dialogue with Jonathan and Johnny Yarms. The episode delves deep into the intricacies of building and scaling a business, emphasizing the significance of habits, strategic planning, and customer engagement in achieving sustained success.

Business Performance and Q3 Review

Jonathan and Johnny Yarms kick off the conversation by reviewing their company's performance in the third quarter. Johnny shares insights into their financial growth and strategic initiatives:

"We came in a little lower than where we wanted to be. But in just looking quarter over quarter, we were up 10%, which is pretty good."
[02:05]

Key highlights include:

• Sales Growth: A 10% increase quarter-over-quarter, driven primarily by strategic promotions like Amazon Prime Day and the "Sale for Your Sobriety," which nearly doubled their previous year's numbers.
• Marketing Efficiency: Adjustments were made to enhance new customer marketing efficiency, addressing previous challenges and beginning to show positive results.
• Operational Adjustments: Johnny mentions the onboarding of a new operations person and the alignment with agency partners to ensure scalability.

Strategic Planning and Vision Alignment

The discussion transitions to strategic planning and the importance of having a clear vision for the company's future.

Jonathan reflects on their goal-setting process:

"We created an alternative sort of target... building out the brand as long as we possibly can without going into debt."
[03:52]

Key points include:

• Alternative Target: Shifting focus to brand building while maintaining a direct-to-consumer model, preparing the company for potential acquisition or continued growth without accruing debt.
• Vision Alignment: Emphasizing the necessity of aligning the entire team and partners with the company's long-term vision to ensure cohesive growth strategies.

Johnny adds the importance of adaptability within structured planning:

"If it makes business sense and it kind of pops up and it's like, maybe that's something you should execute towards... you can introduce new things more easily because everyone already knows what direction they're headed in."
[09:04]

Team Dynamics and Meeting Structures

A significant portion of the episode focuses on optimizing team interactions and meeting structures to enhance productivity.

Jonathan discusses restructuring their meeting cadence:

"We've restructured our meeting cadence and schedule... feels like we're getting actually more stuff done in those meetings because there is a deadline, there's a hard stop on that meeting."
[07:14]

Highlights include:

• Departmental Meetings: Each department now holds structured meetings with clear agendas to streamline focus and efficiency.
• Core Team Meetings: These meetings are agenda-free, fostering an environment for brainstorming and open discussion, leading to increased productivity and creativity.
• Remote Work Adaptations: Emphasizing the need for effective meeting structures in a remote environment to simulate the collaborative energy of an in-office setting.

Customer Engagement and Retention Strategies

The conversation shifts to customer relations and the pivotal role they play in the company's success.

Jonathan shares his transformative experience of engaging directly with customers:

"I now... I'm calling customers every single day. Those conversations have been absolutely incredible."
[15:13]

Key strategies discussed:

• Direct Customer Interaction: Jonathan dedicates significant time to calling customers, fostering deeper connections and understanding their needs.
• Retention Initiatives: Implementing "surprise and delight" tactics, such as sending out branded socks with second orders, has enhanced customer satisfaction and loyalty.
• Customer Feedback Integration: Leveraging customer stories, like Dwayne's health transformation through their product, to reinforce the company's mission and product value.

Upcoming Product Launches

Excitement builds around the company's future offerings, with both Jonathan and Johnny sharing sneak peeks into upcoming products.

Jonathan reveals plans for a new protein bar launch:

"We're so excited to introduce that to you as our newest product drop... 20 grams of protein."
[30:55]

Key details include:

• New Product Development: Finalizing samples of a protein bar with clean ingredients, appealing flavors, and robust nutritional profiles.
• Rebranding Efforts: Transitioning the product "Nightcap" to "Creatures Sleep" to better align with customer understanding and brand clarity.
• Packaging and Marketing: Emphasizing innovative packaging and strategic marketing to ensure a successful launch in the new year.

Social Responsibility and Charity Initiatives

The episode highlights the company's commitment to social responsibility through impactful charity events.

Jonathan discusses their upcoming charity event:

"We have our charity event 'Wear the Weight'... we raise money for substance abuse prevention."
[30:55]

Key initiatives include:

• Substance Abuse Prevention: Fundraising efforts aimed at providing treatment for addicts who cannot afford it, demonstrating the company's dedication to community welfare.
• Employee and Community Engagement: Encouraging team participation in charity events to foster a sense of purpose and collective responsibility.

Conclusion and Final Thoughts

In wrapping up the episode, Jonathan and Johnny reflect on the importance of persistence and adaptability in entrepreneurship.

Jonathan emphasizes steady progress and resilience:

"Slow and steady is going to win the race. As long as you have a get-back-up mindset... you stand a chance of winning."
[26:17]

Johnny concurs, highlighting the balance between data-driven decisions and human-centric strategies:

"There's a greater understanding of why that number exists as opposed to just the number on the screen."
[09:04]

Notable Quotes

• Jonathan: "Slow and steady is going to win the race."
  [26:17]

• Johnny Yarms: "If it makes business sense... you can introduce new things more easily because everyone already knows what direction they're headed in."
  [09:04]

• Jonathan: "Data is human behavior. Data is actual activity from humans."
  [20:50]

• Johnny Yarms: "Their opinions really are what matter most. That's evidence of our brand and product-market fit."
  [19:23]

Key Takeaways

1. Consistent Growth: Achieving steady quarter-over-quarter growth through strategic promotions and marketing efficiency.
2. Vision Alignment: Ensuring the entire team and partners are aligned with the company's long-term vision to facilitate cohesive and adaptable growth strategies.
3. Optimized Team Dynamics: Implementing structured departmental meetings and open-ended core team meetings to enhance productivity and creativity.
4. Customer-Centric Approach: Direct engagement with customers to build loyalty, gather invaluable feedback, and reinforce the company's mission.
5. Future-Ready Product Launches: Preparing for new product introductions with a focus on quality, branding, and strategic marketing.
6. Commitment to Social Responsibility: Actively participating in charity initiatives to support community welfare and foster a positive brand image.
7. Resilience and Adaptability: Embracing a mindset of persistence and flexibility to navigate the ever-evolving landscape of entrepreneurship.

Final Thoughts

Episode 8 of the Kreatures Of Habit podcast offers a comprehensive look into the multifaceted aspects of building a successful business. From financial performance and strategic planning to customer engagement and social responsibility, Jonathan and Johnny Yarms provide valuable insights that can inspire and guide aspiring entrepreneurs on their journey to success.