Tasting Entrepreneurship
I recently went one on one with AJ Patel, co-founder of the direct to consumer snack company HighKey.
Adam: First things first, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth?
AJ: I actually didn’t move to the U.S. with my family until I was 10 years old. I was born in India and growing up there, money was definitely scarce. Maybe not a true Slumdog Millionaire type story, but we came pretty close. Despite the financial challenges we faced, my mom was determined to start her own clothing business. That’s what she did in 1998 and it was just her in the beginning, but things didn’t really change for us until we moved to the U.S. It’s not like we went from rags-to-riches but my mom’s business was able to grow and provide us with a comfortable life. 30 years later and that company is still going strong.
When I think about it, much of my strength and perseverance stems from the support of my mother. She taught me to be resilient and was right there telling me to pick myself up and keep on moving forward through my years of failures. She always believed in me, even when I doubted myself. My mom was the one who inspired me from a young age to want to be an entrepreneur, and of course, encouraged me to take the leap from the corporate world into full-time entrepreneurship. Family examples and support have been instrumental in getting me where I am today.
Beyond that though, experience has probably been my biggest mentor. People who know will tell you that I don’t approach things the same way as they do or settle for good. I have always had visionary instincts and out-of-the-box thinking which drove me to try things others might be afraid of or never even thought to try.
When I was sophomore in high school, I launched and sold my first web-hosting business and used the proceeds to help pay for college. While I was in college, I continued to dabble in internet companies, gaming, staffing agencies, and real estate. These ventures taught me many valuable lessons and ultimately confirmed for me that I didn’t want to work for anyone else.
By the time I graduated college, I had I saved up six figures from my internet ventures. I told my parents I wanted to figure things out for myself and continue down an entrepreneurial path. I poured all the money I saved into other ventures hoping to recreate the same success I had in the past. After two or three years, they had all failed and I had lost everything I had. I was broke and I was out of options.
I had to get a job so I could get back on my feet and pay the bills. For the next two years or so, I worked in accounting and project management. They were arguably the two slowest years of my life but they bought me time and a steady—albeit small—income to pay my bills. Hope is what kept me going. Just because my post-college ventures I had failed, it didn’t mean I was a failure. I knew I could build a profitable business once I saved up enough capital to go back out on my own.
In late 2013, I stumbled upon how to sell on Amazon and thought, “I can do that.” I took a risk of going into debt and charged $40k on my personal credit card, to launch the nature-inspired beauty brand InstaNatural® which is now a top-ranking, e-commerce beauty brand.
It is unlikely for any business venture to succeed without growing pains, whether personal and/or financial and InstaNatural was no different. Although profitable from the onset, at the end of 2016 InstaNatural sales were not on par with my plans for company growth and I had to fire my good friend and step back in as the CEO. I was able to put a plan into place continuing the company on an upward trajectory.
Since then, I’ve founded and built five other CPG brands from the ground up and those certainly didn’t happen without challenges. In my various business endeavors, I have seen a common theme of “you don’t know, what you don’t know” and my setbacks along the way have been attributed to taking risks mostly related to big plans for hypergrowth. I always go back to the lesson my parents instilled in me to take risks and I remind myself that great achievements often involve challenges, even failures, yet are an opportunity to grow and learn.
Adam: How did you come up with your business idea? What advice do you have for others on how to come up with great ideas?
AJ: The concept of HighKey really came about because of my sweet tooth and love for chocolate chip cookies. I was on a low carb diet and was frustrated because most of the products on the market tasted like crap, so I decided to solve the problem myself. I tapped into low carb online communities to see what consumers were saying about current offerings in the segment and found that I was not alone. There were lots of health-conscious consumers who were also concerned about flavor, texture, and added sugar and were desperate for low carb, better-for-you products that taste just as good as the original. Needless to say, there was a huge need and I happened to be in the right place at the right time.
As far as advice on coming up with great ideas, I think it has to start with finding something that excites you so you will enjoy the journey more. Don’t jump on the bandwagon of “me too” products that have multiple offerings in that category. Find a white space, solve a need or a want, and find a creative way and market strategy to fill that void.
Adam: How did you know your business idea was worth pursuing? What advice do you have on how to best test a business idea?
AJ: Through market research, we were able to identify that consumers were seeking “permissible indulgence”, and ways to satisfy cookie cravings without breaking their low carb diet. Mini Cookies were identified as a key opportunity, with consumers wanting to indulge but concerned with levels of sugar and ultra-aware of portion size. After nearly a year of testing various formulations, we were able to achieve the desired flavor and texture for our Chocolate Chip Mini Cookies— ultimately filling the void/need/white space. We tested our Mini Cookies online and within six months we knew we were onto something great as our sales helped us validate the idea. This is an essential part to testing any business idea. Our initial online success gave us the necessary validation to continue growth of our online business and put together a successful go-to-market strategy to scale to retail.
Adam: What are the key steps you have taken to grow your business? What advice do you have for others on how to take their businesses to the next level?
AJ: It seems that many entrepreneurial-minded people fail because they aren’t good at thinking ahead and finding the right people to help them succeed. I learned early on in my career that to be a successful entrepreneur you have to see opportunity in not only ideas, but in the people that can help you grow those ideas. I’ve always attributed much of my success to my team, so the first key step has really been to surround myself with people who have the initiative for success, are independent thinkers yet team players, and can work hard in a culture seeking hypergrowth.
Growing a successful company also means staying ahead of the curve, pledging to never be complacent, and realizing that if your company is not innovating or growing then it is likely to die a slow death. Four main lessons I’ve learned that have helped me take my businesses to the next level are:
Welcome change
Work smarter, not harder
Embrace your passions both professionally and personally
Take risks
Adam: What are your best sales and marketing tips?
AJ: To reach more people, you need to embrace technology, establish visibility for your company online, and know who your audience is so you can go wherever they are going. Even before today’s pandemic environment, e-commerce sales were skyrocketing, so it is obviously the place to start and then perhaps move more into traditional sales approach. Marketing is all about being engaged in social media and again going where your audience goes and engaging with core influencers to bolster brand awareness.
Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?
AJ: One of the most defining qualities of an effective leader is a positive attitude, followed by being a great communicator and leading by example. I thrive on mentoring and encouraging my employees to be the best they can possibly be, but being a good leader without a doubt starts with self-awareness. For me, it really helped to hire a mindfulness coach so I could become more aware of how I can elevate myself as a leader. As a result, I’ve invested more time in building amazing relationships with my employees and become a more effective communicator. I’ve learned that finding the balance between work, life, and spirit that is vital to feeling whole, happy and purposeful so I strive to lead by example and encourage my employees to do the same. My coach also helped me to define key leadership qualities that keep me on purpose and that might help other aspiring leaders take their skills to the next level:
Creativity: Ignite creative, out-of-the box ideas and seek a unique perspective and desire for innovation.
Drive: Be driven to accomplish boundless success and be respected as the visionary you know yourself to be.
Teaching: Thrive on mentoring and teaching others what you know, revealing to them the endless possibilities for success.
Connection: Aspire to create deep meaningful personal and professional connections and being the person people can lean on.
Health: You can serve others and yourself more meaningfully when you take care of your mind, body and spirit.
Adam: What is your best advice on building, leading and managing teams?
AJ: Hire the best people with the right skill set and don’t be the smartest person in the room. Embrace the opportunity to mentor and coach new or raw employees and guide them to refining their skill set/career path without micromanaging them and then get out of their way. If employees are empowered to find their own way, yet fully supported along their journey, then we see greater performance and retention.
Adam: What are your three best tips applicable to entrepreneurs, executives and civic leaders?
AJ:
Surround yourself with people who you want to be like. Create an advisor and mentor network.
Take action/risks. You have to fail to learn and grow.
Adapt to cutting-edge technology. It’s crucial for identifying and exploring new opportunities to scale your company. Next-generation business leaders must commit to an innovative model with a do-or-die attitude. If you’re complacent with technology you currently have or use, the opportunity windows will close and your business will likely die a slow death.
Adam: What is the single best piece of advice you have ever received?
In the early days, I remember being told to not “get caught in the weeds” and to make sure to work on your business, not in it. I’ve used this advice to help me think more strategically, find efficiencies, keep perspective, prevent myself from being overwhelmed, and to work through day-to-day challenges.
Adam: Is there anything else you would like to share?
AJ: Being an entrepreneur is like being on a roller coaster ride with many ups and downs, and some major frustrations and perhaps a few tears along the way. I know I wouldn’t be where I am today without the love and support of the family who raised me and the amazing leadership team who has kept me honest and supported me candidly every step of the way, giving me more satisfaction than the financial rewards of being an entrepreneur could ever bring.