Building Businesses From Suits to Soap

I recently went one on one with Justin Delaney. Justin is the CEO of Buff City Soap, which has nearly 30 locations open and operating throughout the Southeast. Justin founded Menguin, an online suit and Tuxedo rental company and the first of its kind, in 2013; one of his first investors was Mark Cuban. After selling his business to Generation Tux (George Zimmer’s company after Men’s Wearhouse) in 2017, Justin served as the brand’s president for over a year. Justin was previously one of AOL’s first travel bloggers.

Adam: Thanks again for taking the time to share your best advice. First things first, though, 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? 

When I was 16, I got my first job at McDonald's. Second day on the job, a kid threw up in the ball pit, and I had to clean it up. It took around three hours, and I have been generally ambitious ever since.

Adam: What are your best tips on starting a new venture and understanding how viable your business idea is?

First, always be solving a problem. Second, make sure you understand your own personal goals and that there is alignment between those and the business goals. Third, it helps to have an idea that you can test to better understand your customers and their needs without having to deploy capital. Listen to the customer; they have all the answers. 

Adam: How did you develop your relationship with Mark Cuban? What role did he play in your company’s success?

Mark is a fellow alumnus from Indiana University and he invested after we pitched Menguin while still students. He was a great sounding board and his participation in our business opened a lot of doors with both customers and investors. Mark is a brand. Having him as an early investor meant we received more attention. 

Adam: What are your best tips on raising capital?

Relationships and communication. With Menguin, I personally pitched around 100 investors before we raised our first round. When I first started, I thought, "the merits of the business model will help us raise money." By the end, I knew, "It is purely a relationship game." It comes down to trust and how much people believe in you and your vision.

Also, document every investor or strategic connection that you meet with detail and keep them in a CRM - this is no different than a sales job. For every "no" you receive from an investor, ask for 2-3 intros to prospective investors or people that can help you scale your business. That is really important. Critical and basic.

Send all prospective investors, whether they said no or hell no, a monthly email with simple business updates. Play the long game. People remember the communicators. A "no" can turn into a "yes" with six months of perspective into your leadership style and business.

Also, there is an old adage - If you need advice ask for money and if you need money ask for advice. This underscores the theme of relationships. Build relationships and communication cadence first, ask for money later.

Adam: What advice do you have on scaling a business?

Spend your time finding repeatable value creation processes. Spend your money scaling those repeatable value creation processes. 

Adam: What are the best lessons you learned from your experience selling your business and from your time running the brand for George Zimmer?  

In “on to the next one” by Jay-z, he raps, “Got a million ways to get it, choose one.” As an entrepreneur, this is absolutely critical advice. When you try to do too much, you fail. There are millions of opportunities, but those that make it farthest tend to choose one at a time. Entrepreneurs have to do an insane amount of due diligence to figure out how we invest our time - in just one thing. Much like a journey that has a particular destination, we must set out like a cruise missile aimed at specific coordinates. You can’t go to five places at once. That is the trick. Also, I learned that after you sell your business, nine out of ten times, it is on to the next one.

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? 

Leaders need to have empathy, great organizational skills, cultural and business vision, as well as an innate curiosity. Also, great leaders are constantly investing in broadening their perspective. Travel has been the most valuable exercise for me as a person and leader. I have spent the last ten years attempting to visit every country in the world, and those experiences have shaped me immensely. After every new place, I can see a little further. 

Adam: What is your best advice on building, leading and managing teams? 

I have had to learn many lessons the painful way. It all comes down to expectations and honesty. Always tell the truth and make sure that everyone knows their mission - objectives and key results. Never let organizational debt accumulate or it will bankrupt your culture. Work through people problems fast and often. 

Adam: What is the single best piece of advice you have ever received? 

On the night before my wedding, my grandfather told me to "go as far as you can." I have spent the last ten years trying to be as boundless as possible and push how far I can see and to go there. People tend to get stuck in jobs, relationships, routines that can turn the possibility of an incredible journey into a bunch of nearly identical commutes. Explore the places in between. Be curious enough to find new things. Be fearlessness to hunt your ideas rain or shine. Be disciplined enough to never stop.

Adam: What are your biggest strategic considerations as you work to grow Buff City Soap from a regional player to a national and international company?  

We have nearly 30 stores from Colorado to Florida, so I believe we have proven that it is more than a regional model. Strategically, it is pretty simple. Share wondrous products and experiences with customers. Always be authentic and natural.