205 - "I made $31M that day. Here's how." | Manjit Minhas, Co-founder of Minhas Breweries

Summary

Podcast Summary: Making It with Jon Davids – Episode 205: "I made $31M that day. Here's how." featuring Manjit Minhas, Co-founder of Minhas Breweries

In Episode 205 of Making It with Jon Davids, host Jon Davids engages in an in-depth conversation with Manjit Minhas, the dynamic co-founder of Minhas Breweries. This episode delves into Manjit's entrepreneurial journey, exploring how she transformed a modest startup into a multimillion-dollar enterprise. The discussion is rich with insights, practical advice, and personal anecdotes that offer valuable lessons for aspiring entrepreneurs.

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1. Introduction to Manjit Minhas and Minhas Breweries

The episode opens with Jon Davids posing a provocative question to Manjit:

[00:33] Manjit Minhas: "$31 million."

Manjit’s concise and impressive answer sets the stage for a conversation about her remarkable success in the alcohol manufacturing industry. She briefly explains her business:

[00:35] Manjit Minhas: "We make and sell alcohol."

Jon introduces Manjit as the co-founder of Minhas Breweries, highlighting the company's status as one of the largest private label beer makers globally. He emphasizes the candidness of the discussion, preparing listeners for an unfiltered dialogue.

2. The Genesis of Minhas Breweries

At just 19 years old, Manjit co-founded Minhas Breweries with her younger brother while they were both studying engineering. Reflecting on the early days:

[01:32] Manjit Minhas: "I was 19 years old. I co-founded it with my younger brother who's a year and a half younger than I. We were both studying engineering when we started the business."

On the first day of business, the operation was modest:

[01:43] Manjit Minhas: "On day one the business looked like me and my brother and a co-packer in the United States making a wide variety of spirits for us to our specific recipes and us when we weren't in school, going and selling it to not only liquor stores but anybody who could buy alcohol."

This initial phase involved direct sales efforts, showcasing their commitment and hands-on approach to building the brand from scratch.

3. Identifying and Capturing Market Niches

Manjit identified a gap in the market for high-quality spirits at fair, everyday low prices. This strategic insight led to the expansion of their product line into beers and wines. By manufacturing their products, Minhas Breweries gained greater control over quality and distribution:

[02:05] Manjit Minhas: "We were a sales, marketing and branding company that day one or even day ten. Never dreamed of actually being a manufacturer and owning manufacturing businesses... But as things started going along we discovered in order to have control, to be a large competitive player, to make more money, you had to have more control of everything along the way."

4. Overcoming Early Challenges

Securing the first customer was both ironic and pivotal:

[02:38] Manjit Minhas: "Ironically, was my dad. My dad owned liquor stores in Calgary because when he was laid off from the oil patch, he was an engineer. He opened up liquor stores in Alberta because it had just become privatized at the same time."

Despite facing skepticism from outsiders, including banks:

[03:14] Manjit Minhas: "Everyone, including the bank who I went to try to get money from, they were like, what are you talking about? It really wasn't a thing."

Manjit and her brother started with a humble investment of $10,000, sourced from personal savings and creative fundraising:

[03:26] Manjit Minhas: "We had $10,000 and that's what we started with. It was my savings, my brother's peanut dustings... I sold a RAV4 that my parents gifted to me when I was 16 to drive him and me to school."

5. Building the Salesforce and Expanding the Business

A crucial turning point was hiring their first salesperson, whose dedication underscored the importance of sales in scaling the business:

[04:42] Manjit Minhas: "He was a hustler. He didn't have a car, he didn't have a driver's license. He took the bus to go and meet his potential customers and he rocked it for us for sure and showed us what was possible."

This strategic hire exemplified how key personnel can significantly impact business growth.

6. Managing Financials and Customer Relations

Manjit emphasizes financial prudence and resilience in handling difficult customers:

[05:18] Manjit Minhas: "I was very conscious of spending only what we had and I always knew what we had. So I wouldn't say that we ever got behind or I owed anybody any money."

Addressing problematic clients:

[05:32] Manjit Minhas: "There's lots of bad customers, so clients that just don't pay the bills. That sounds pretty bad... every business has those. And you have to set yourself up financially to say, what are those losses? Because they exist."

7. Leadership Philosophy and Company Culture

Contrary to the tough image often associated with successful entrepreneurs, Manjit has never fired an employee:

[05:49] Manjit Minhas: "I have never personally fired somebody... I will not eat alone in a restaurant and I will not fire anyone."

This humane approach highlights her unique leadership style, fostering a supportive company culture.

8. Strategic Investments and Growth

One of the most significant investments was acquiring their first brewery in Wisconsin in 2005, marking a shift towards greater control over production:

[07:17] Manjit Minhas: "It was our first brewery in Wisconsin... It set our future on a totally different path. Being in control of our own business, our domain, and our futures."

The acquisition involved strategic negotiations, underscoring Manjit’s determination and business acumen.

9. Stance on Investors and Business Independence

Manjit’s reluctance to seek external investors stems from a desire to maintain control and adhere to an old-school mentality instilled by her immigrant parents:

[07:44] Manjit Minhas: "Listen, you buy what you can afford... It helps me sleep easier at night. I get control over decision making, which is really important to me as an entrepreneur and a founder."

This philosophy emphasizes self-reliance and strategic autonomy.

10. Advice for Aspiring Entrepreneurs

Manjit dispels the myth that substantial initial capital is a prerequisite for success:

[08:27] Manjit Minhas: "Bullshit. I think they're reading and hearing other people's stories too much... Do you want to spend most of your time answering questions of investors... or do you want to get down to work and make some damn money for yourself?"

Her pragmatic advice encourages entrepreneurs to focus on actionable steps over external validation.

11. Personal Reflections and Lessons Learned

Manjit candidly discusses moments of doubt and the importance of resilience:

[08:50] Manjit Minhas: "Oh, yeah, all the time. But I think that that is also part of pushing yourself and being a driven person."

Addressing misconceptions about her success:

[09:05] Manjit Minhas: "It's not easy and that we're just lucky. No matter how successful I am, I'm still working more than probably them every single day."

12. Work Ethic and Lifestyle

Highlighting her relentless work ethic:

[09:27] Manjit Minhas: "Oh, God, I stopped counting a long time ago. But it's a lot. I work on the weekends."

Acknowledging the balance between work and family:

[09:29] Manjit Minhas: "It's a lot. I work on the weekends. I take scheduled breaks to be with my family."

13. Handling Mistakes and Financial Setbacks

Manjit shares a pivotal mistake that taught her humility:

[09:40] Manjit Minhas: "Money going into an industry in a business that I didn't know anything about... I lost everything. It was an interesting lesson in being humble and sticking to what you know."

14. Personal Financial Milestones and Humble Beginnings

Revealing the peak of her financial success:

[10:15] Manjit Minhas: "About $100 million."

Clarifying her modest upbringing:

[10:23] Manjit Minhas: "Absolutely not. My dad worked security and redid his engineering degree... Very working family, for sure."

Manjit advocates against using one’s financial background as an excuse for lack of success:

[10:46] Manjit Minhas: "I think that where you come from... is an excuse either way you go from where you came from."

15. Future Aspirations and Entrepreneurial Drive

When asked about her plans if she were to sell her company:

[11:20] Manjit Minhas: "Start another business."

This statement encapsulates her unyielding entrepreneurial spirit and desire to continuously innovate.

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Key Takeaways and Insights

• Identifying Market Niches: Recognizing unmet needs in the market can drive successful business ventures.

• Hands-On Leadership: Direct involvement in sales and operations fosters a deep understanding of the business.

• Financial Discipline: Maintaining strict control over finances ensures business stability, even in challenging times.

• Resilient Mindset: Overcoming setbacks and learning from mistakes are crucial for long-term success.

• Autonomy Over Growth: Choosing not to seek external investors can provide greater control and flexibility in decision-making.

• Work-Life Balance: Despite a demanding work schedule, allocating time for family is essential for personal well-being.

• Continuous Growth: A successful entrepreneur’s journey doesn’t end with achieving financial milestones; the drive to start new ventures remains.

Notable Quotes

• On Starting the Business:

  [01:32] Manjit Minhas: "I was 19 years old. I co-founded it with my younger brother who's a year and a half younger than I."

• On Overcoming Skepticism:

  [03:14] Manjit Minhas: "Everyone, including the bank... they were like, what are you talking about? It really wasn't a thing."

• On Financial Management:

  [05:18] Manjit Minhas: "I was very conscious of spending only what we had and I always knew what we had."

• On Leadership and Firing:

  [05:55] Manjit Minhas: "I have never personally fired somebody... I will not eat alone in a restaurant and I will not fire anyone."

• On Entrepreneurial Advice:

  [08:27] Manjit Minhas: "Bullshit. I think they're reading and hearing other people's stories too much."

• On Misconceptions of Success:

  [09:05] Manjit Minhas: "It's not easy and that we're just lucky."

• On Future Aspirations:

  [11:20] Manjit Minhas: "Start another business."

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Conclusion

Manjit Minhas's journey from a 19-year-old engineering student with a $10,000 investment to a multi-million dollar entrepreneur is a testament to vision, resilience, and strategic thinking. Her candid discussions on financial management, leadership, and personal growth offer invaluable lessons for anyone looking to embark on their own entrepreneurial path. This episode of Making It with Jon Davids not only chronicles the success story of Minhas Breweries but also provides a blueprint for aspiring entrepreneurs to navigate the complexities of building and scaling a business.

Transcript

[John Davids]

This episode is brought to you by my one minute marketing roadmap, [e-mail] roadmap in 60 seconds you'll get a custom report showing you how people are finding your brand, where you're losing them and how to fix it. We used a decade of data from Influicity and layered in AI to give you a real action plan. It's fast, it's free, and it might just change your business. Go to johndavids.com roadmap and get yours right now. What's the most money you ever made in a day?

[Manjeet Minhas]

$31 million.

[John Davids]

And how did you do that?

[Manjeet Minhas]

We make and sell alcohol.

[John Davids]

And how did you get into that?

[Manjeet Minhas]

Saw a niche in the market that wasn't being filled, which was high quality spirits at a fair everyday low price. And then that expanded into beer wines. We started manufacturing it ourselves and now have breweries, distilleries and wineries around the world.

[John Davids]

That's Manjeet Minhas, co founder of Minhas Breweries, one of the biggest private label beer makers in the world. She makes an insane amount of money doing something insanely cool and this is me asking her a bunch of wild questions. Fair warning, Manjeet doesn't hold back. If you're a fan of the podcast, let me know by leaving a rating or review wherever you're listening and share this episode with a friend. Get my best stuff to your [e-mail] and now let's get to the show Foreign. You're listening to Making it with John Davids. And how old were you when you got started?

[Manjeet Minhas]

I was 19 years old. I co founded it with my younger brother who's a year and a half younger than I. We were both studying engineering when we started the business.

[John Davids]

And what did the business look like on day one?

[Manjeet Minhas]

On day one the business looked like me and my brother and a co packer in the United States making a wide variety of spirits for us to our specific recipes and us when we weren't in school, going and selling it to not only liquor stores but anybody who could buy alcohol.

[John Davids]

So you were taking alcohol and going door to door to liquor stores?

[Manjeet Minhas]

Yeah, we were a sales, marketing and branding company that day one or even day ten. Never dreamed of actually being a manufacturer and owning manufacturing businesses, but also everything else in between from distribution to you name it. That was definitely never. We didn't think in the cards. But as things started going along we discovered in order to have control, to be a large competitive player, to make more money, you had to have more control of everything along the way.

[John Davids]

And how did you get your first.

[Manjeet Minhas]

Customer, ironically, was my dad. My dad owned liquor stores in Calgary because when he was laid off from the oil patch, he was an engineer. He was open up liquor stores in Alberta because it had just become privatized at the same time.

[John Davids]

So your dad was an entrepreneur too? Yes, he was entrepreneurship, running the family.

[Manjeet Minhas]

Well, it didn't before my dad or us. Everybody else that are traditional Indian family are, you know, doctors, engineers and accountants. So. But you know, I think now it does. I hope my two girls become entrepreneurs, but who knows?

[John Davids]

When you were starting the business, did anyone tell you that it was a dumb idea?

[Manjeet Minhas]

Oh yeah, everybody, including the bank who I went to try to get money from, they were like, what are you talking about? It really wasn't a thing. I know it's hard for people to believe that now, 26 years later.

[John Davids]

What did it cost you to start this business?

[Manjeet Minhas]

Well, we had $10,000 and that's what we started with. It was my savings, my brother's peanut dustings, because he's not a saver. Still not.

[John Davids]

So you started a business that today does many, many millions on a $10,000 that you got by selling your RAV4?

[Manjeet Minhas]

100%. Yep. I sold a RAV4 that my parents gifted to me when I was 16 to drive him and me to school.

[John Davids]

What was that first year like?

[Manjeet Minhas]

That first year was, it was really a side hustle. It was interesting because we were starting to see validation from customers to tell us that, oh, they liked it. And then we got other liquor stores telling us, hey, how do I get this in my stores? How do I get it on my shelves? And so it was really interesting to say, okay, this idea that we had is actually not only something that is needed and wanted in the marketplace, but there is a lot of potential here if we spend a bit more time here. First year was, was definitely tough, but also learnings, lots of learnings. I learned how to read spreadsheets and, you know, balance sheets and like, I learned so much about every part of business from duties to import taxes to like, you name was a fascinating hockey stick of education.

[John Davids]

Who was the first person you hired that changed everything?

[Manjeet Minhas]

A salesperson. I truly believe every company makes or breaks itself with sales.

[John Davids]

Do you have a specific salesperson that you hired that just kind of changed the game for you?

[Manjeet Minhas]

Yeah, he was our first. He was incredible in so many different ways. He was new to this country, he was looking for an opportunity. We met him through Interesting circumstances. And he was hustler. He didn't have a car, he didn't have a driver's license. We didn't have any spare funds. He took the bus to go and meet his potential customers and he rocked it for us for sure and showed us what was possible.

[John Davids]

Did you ever struggle to pay the bills?

[Manjeet Minhas]

Yes and no. Meaning that I was very conscious of spending only what we had and I always knew what we had. So I wouldn't say that we ever got behind or I owed anybody any money.

[John Davids]

What's the worst customer you ever had to deal with?

[Manjeet Minhas]

There's lots of bad customers, so clients.

[John Davids]

That just don't pay the bills. That sounds pretty bad.

[Manjeet Minhas]

It is, it is, it is. And I think that unfortunately every business has those. And you have to set yourself up financially to say, what are those losses? Because they exist.

[John Davids]

Have you ever regretted firing somebody?

[Manjeet Minhas]

I have never personally fired somebody. I will tell who I would like to be fired, but I have never done it myself.

[John Davids]

So you have this image on TV of being the tough gal, but you've never actually fired anyone.

[Manjeet Minhas]

John, you're breaking my, like total character here. Yes, yes, There. Yeah. Don't ask me why, but there's a couple things that I have not, I will not do. I will not eat alone in a restaurant and I will not fire anyone. Anybody.

[John Davids]

Hey guys, real quick. If you're liking this video so far, let me know by leaving a like or a comment and share the episode with a friend. Plus, if you're building a business or hope to one day grab one of my free playbooks, head over to JohnDavids.com playbook back to it. What's the worst decision you've made since starting this business?

[Manjeet Minhas]

None. Because I think all of them led to where we are today. I'm not one that believes in regret. I don't really spend too much time looking backwards. I'm all about looking forwards.

[John Davids]

What's the best purchase you've made? Under $500 to grow the business.

[Manjeet Minhas]

Oh my God. I've never bought anything under 500 in our business, in a manufacturing business. It's. It's so expensive. I could say the first, best purchase we made was our first brewery in Wisconsin. Definitely was not. $500 was every penny we had in the bank. But that really set in 2005. Our future in a totally different path. Being in control of our own business, our domain, and our futures.

[John Davids]

So in 2005 you bought a brewery. How did that happen?

[Manjeet Minhas]

Yeah, so they were co packing the beer for us. Out of Wisconsin. And some rule changes had happened in government and we needed to own that brewery. We were just over 80% of the production out of that brewery. It was not for sale. It was fourth generation of a family that had owned it since 1845. The brewery's been around, and we said to them, hey, we need to buy this, otherwise we walk. It was a very weird negotiation.

[John Davids]

Why have you always been so against investors?

[Manjeet Minhas]

Yeah, I think that's just an old school mentality that I was raised with. My parents are immigrants, came from India. They always definitely. We grew up with the thought in the house that, listen, you buy what you can afford, what you have in the bank other than a house. It helps me sleep easier at night. I get control over decision making, which is really important to me as an entrepreneur and a founder. I don't want to answer to others, but for me, it's always just been a foundation of the way we operate.

[John Davids]

So you started the business with $10,000 and today it's a huge privately owned company. What do you say to all the people watching that think that they can't even get started because they don't have a ton of money to begin with?

[Manjeet Minhas]

Bullshit. I think they're reading and hearing other people's stories too much. I think that you have to look at what works for you and what you are comfortable with. Do you want to spend most of your time, you know, answering questions of investors and pitching and doing all that, or do you want to get down to work and make some damn money for yourself?

[John Davids]

So, as an investor, what's the best investment you've made in myself. Has it ever gotten so hard that you wanted to quit?

[Manjeet Minhas]

Oh, yeah, all the time. But I think that that is also part of pushing yourself and being a driven person, that you want the best and you want to keep. Keep going and you keep pushing yourself.

[John Davids]

What do you think is the biggest misconception people have about someone with your kind of success?

[Manjeet Minhas]

Is that it's easy and that we're just lucky. I think two things. One, it's not easy. We. No matter how successful I am, whatever that definition is, is I'm still working more than probably them every single day. Like, it is something that I wake up in the morning very driven and ready to go, and. And work hard at it.

[John Davids]

How many hours a week do you actually work these days?

[Manjeet Minhas]

Oh, God, I stopped counting a long time ago. But it's a lot. It's a lot. I work on the weekends. I take share of some breaks, scheduled breaks to Be with my family.

[John Davids]

What mistake has cost you the most.

[Manjeet Minhas]

Money going into an industry in a business that I didn't know anything about, that I saw other people making money in, and I thought, oh, do that too. I knew nothing about it. I lost everything. It was a interesting lesson in being humble and sticking to what you know.

[John Davids]

When was the last time you felt insecure about money?

[Manjeet Minhas]

I would probably say when the election happened because nobody knew what was going on. Were tariffs going to kill my entire business?

[John Davids]

What's a belief you had 20 years ago that you think is crazy today?

[Manjeet Minhas]

That I had to do everything in the business. I thought I was the smartest in the room and I knew everything because it was my baby.

[John Davids]

What's the most money you've ever had in your bank account?

[Manjeet Minhas]

Nobody's asked me that before, but I would say about $100 million.

[John Davids]

Were you born rich?

[Manjeet Minhas]

Absolutely not. My dad worked security and redid his engineering degree in Calgary. Came from very modest means and so did my mom. My mom never went to university. No, not very middle class. No. Very working family, for sure.

[John Davids]

So what do you say to people who use the fact that they weren't born rich as a crutch to why they can't get rich?

[Manjeet Minhas]

Listen, I don't think that where you come from, as far as your family really matters. I think that that's an excuse. I think that it. In my case, it gave me an amazing work ethic and foundation, and I hope it does the same thing for my kids. But it is not a reason why anybody is successful or not. To be quite honest, I think that that is just an excuse either which way from where you came from when.

[John Davids]

You started to make money, what's the biggest splurge you made?

[Manjeet Minhas]

Me and my brother brought matching Bentleys.

[John Davids]

If you sold your company tonight, what's the first thing you do tomorrow?

[Manjeet Minhas]

Start another business.

[John Davids]

Thanks for listening. Hope you enjoyed this episode. If you did leave a rating or review on Apple or Spotify, wherever you listen to podcasts, it helps other people find the show and it lets us know that we're doing something right. We'll talk to you guys next time. Mmm. I'm hungry. You guys hungry? I could go over some fried chicken right now from Jollibee and no, this is not a commercial for Jollibee. This is a commercial for Influicity. That's my marketing agency. And Jollibee is one of our amazing clients. You can see how we help drive more foot traffic to their restaurants across America. At Influicity, dot com, check out the case study. And hey, while you're there, check out all the other case studies from the amazing clients we work with, Influencer marketing, podcasts, social media content, AI, and so much more. And if you want to work with us, just hit the let's Talk button over at the top of the website. That's influicity.com and I'll see you there.