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.

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.

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."

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.