Thanks for your time. I appreciate it.
A pleasure to be here.
Congratulations on launching your first startup. Tell us a little bit about Impeesa.
Impeesa Coffee and Tea was a venture created by three other friends and myself. We are all Boy Scouts. The concept behind it was to create a market for a product that we enjoyed that we were passionate about and that had a purpose. That product being coffee and tea, two things that in the high velocity environment that we were raised in, this kind of area, coffee and tea for a lot of people are a relief and an energizer at the same time so that they cultivate a lot of productivity and efficiency. We are people that really like to get involved really heavily and really quickly. We decided to create a marketplace for something like that. The purpose we brought in, is related to the term Impeesa. Impeesa was how the Matabele in South Africa referred to Lord Baden-Powell, the founder of Boy Scouting. The translation was the “Wolf that Never Sleeps,” so you can probably see the coffee reference there. Being Boy Scouts we’ve all gone through National Youth Leadership Training which is a spectacular opportunity for young men to go in and really understand what leadership really is. We decided that with this marketplace we had created with something we really enjoyed, that we could also create more opportunities for youth to pursue that National Youth Leadership Training. So, we decided to really round off Impeesa as an opportunity to raise money for scholarships for National Youth Leadership Training. That was the main goal and why we started Impeesa. Something we enjoyed. Something we were passionate about that we could make a purpose out of.
You talked about creating a market. How did it go?
All in all, this was probably our most successful failure, is how we refer to it (both laughing).
I’m sure you learned a lot in the process.
Exactly, that’s what it is. We got to the point in our journey of the red and black line where we were finally coming out of the red and we decided to reinvest back into coffee. That’s when things kind of went downhill because that’s when the startup hype died down. That’s something that we had known was going to happen. We tried to account for it and we to market for it. We just didn’t do it overtly successfully. Everything we learned was so much more valuable than any penny or dime that we could have made. That’s what we enjoy the most looking back on it. We said from the beginning, if we don’t make a dime out of this we will probably have had a more valuable experience than most people our age do.
It was a heck of an education. It was almost a mini-MBA.
It’s a mini-MBA. We threw ourselves into it and we didn’t do great, obviously, which is why we’re putting it on hiatus so we can focus on going to college.
My hats off to you, because a lot of people talk about starting a business. You’ll probably hear that a lot in college, but very few will have done it, especially in high school.
Definitely, when we started initially talking about it, we weren’t just talking about it. In our heads, the minute we brought this up, we knew we had to do it, because everybody talks about this, but never does it. That was probably our main motivation, not only creating the opportunity for scholarships, but also just doing it. What’s the point in talking about it if you’re not going to do anything about it.
You talked about when you started getting into the black. I think a lot of people don’t understand how hard entrepreneurship is. There’s the hype in the beginning, but then it’s just hard work. Can you talk a little about that. If you continued it, what would you do differently or what would you continue to do?
It is so much work getting out of that initial investment. It was all personal investment. We all contributed about $200 in each, so that put us down about $800 total. Just getting up from that number was such a challenge. Just paying off that overhead. We rode that startup hype really, really well. If we weren’t full time students in high school we probably could have had the capacity to ride that startup hype right out of the red. Being high school students we didn’t really have the capacity to focus full time on getting a quality marketing plan. About January or February we started thinking about when our next step should be after the startup hype was over. That was our frame of thinking. We tried to anticipate what we were going to be as a brand and how we were going to market as a brand. We had a really solid plan. It just didn’t work. I think that’s the most important thing that we learned. You can plan for whatever you want, but it might not work. Your plan might not be the best even if it’s eight pages long and you have your headers and your bullet points. Your plan might not work and you have to be ready for that. That’s something that as full time students we couldn’t necessarily do. And definitely to anybody reading this don’t discourage yourself by your circumstances. Don’t think because you’re a full time student you can’t have the capacity to plan effectively. We thought that our plan that we had put all this thought into would work and it didn’t, necessarily. Things that we could have done differently…definitely just anticipating the credibility of people and utilizing a lot of those quality resources. Everybody is going to say that they will buy your product.
How many actually buy it?
Probably 20-30% of people actually buy the product. Everybody wants to be part of this cool new thing. Nobody wants to spend money, though. I started getting into a lot of Facebook groups where people were like “this is what you’re doing wrong, this is what you’re doing right.” People with experience not only running tea businesses, but tea snobs. The tea snobs were probably the best resource. Your black tea is definitely not worth this much. Don’t sell it for that much. You might sell more. There are quality resources, things like Facebook groups. Tea Mavens, I think, was one of them. You jump into one of those and suddenly you have this wealth of knowledge that you as a high schooler definitely could not have. When it comes to our industry, food and beverage, tea and coffee, those experts, those snobs, were definitely great resources because we know when we were wrong. They liked to point that kind of thing out. You can put all this thought into a marketing plan and try to get around that startup hype, but at the end of the day your best resources aren’t going to be that plan or the points of that plan, they are going to be the people who know what they are talking about. And they want to help you out because you’re a young kid and they want to show off their knowledge.
It’s a win win. Where did you get the first idea for the business?
The four co-founders were Josh Rigby, Keenan Murphy, Hart Lukens and myself. Josh and Keenan…and we tell this story to everyone because this is how it actually happened…they had just gotten out of a movie at Potomac Mills. They were in the bathroom and Josh yells from one stall to Keenan “Hey, if we started a business, what would we sell?” And at the same time they both say “coffee!” They are coffee addicts without a doubt. For fun they wrote up a quick operating agreement. Why not do this just for fun? So, I’m sitting in AP Literature one day with Josh and I see this operating agreement. I’m like “Dude, what’s this?” Because I recognized Impeesa from the name of the National Capital Area Council for NYLT camp. “Impeesa Coffee? This seems really cool” I text Keenan. I asked him if there was a way to invest in this. He said “no, it’s an LLC.” “But, if you want in, you can buy in.” I’m like “OK, why not?” If we’re going to talk about this, we need to do it. We actually looked at the numbers for coffee and realized how expensive coffee was going to be. Josh and I said we need the money for coffee. How are we going to make the money for coffee? So, Keenan shoots us both a text with a tea wholesaler that has like a 12,000% turnaround. You could buy this stuff for almost nothing and sell it for any amount that you want. He said this is how we are going to make money for coffee. A few days later Hart Lukens and I were talking, and he wanted in, too. You’re part of our solid group of friends, of course you’re in.
How many founders were there?
There were four total founders, including me: Josh Rigby, Hart Lukens, Keenan Murphy, and me. After we brought Hart on board is when we really got into the swing of things. We really decided to buckle down and make sure this happened. We felt cool. You feel cool starting a business. We had this down. After a swim banquet, we all had the operating agreement, these crazy 17 page long contracts with each other because it was an LLC partnership. We had them in our hands ready to go. That was December 14th when we officially filed all our paperwork that we needed. We had our EINs (IRS Employee Identification Numbers) and all that. So that’s the weird wonky journey that led up to that. We didn’t really have a plan in place. We just had the idea of “Yes, we are partners in business. We’re not entirely sure how that works yet.”
Let’s talk about FBLA (Future Business Leaders of America) a little bit. You were the President of FBLA. How did FBLA help you with the business, if at all?
It definitely did. What we were doing with coffee and tea…we’re sitting in Starbucks right now. People who want coffee don’t necessarily want coffee. They want Starbucks. They want Keurig. People want their tea from a particular place. Creating a market was kind of creating that market, creating demand for our product, was something that we really needed. Especially if we’re starting off with tea. So FBLA was more of a social experience than anything else. You’ve got a lot of skill building in there, but more than anything else when you walk into an FBLA conference you’re shaking hands, and you’re learning how to interact with people. That interaction with people who already have a heightened expectation of what is supposed to be going down was probably the best skill I learned in FBLA. Keenan was a member of FBLA, too. Josh was for a short spell. So learning how to interact with people and how to really sell yourself taught us how to sell our product. You definitely want some of this (product). This is something you want to be a part of. We’re a bunch of dumb young kids starting a business our product, come join us and tell everyone you love it. Definitely the social scene of FBLA helped teach Keenan and myself how to sell something in a setting that’s very fast-paced. And high school is especially fast-paced. If you want to sell something in a hallway, you don’t have much time: “we just started this business, check us out.” Sitting in a classroom you’ve got a five minute break between Powerpoints. I started a business, you should try it and check out our mission. I think in FBLA there were definitely skills that we learned when it came to business plans and marketing. The social scene behind FBLA helped us to sell ourselves.
What are some of the habits that you would say have helped you be successful?
Communication. A big theme at National Youth Leadership Training is communication. It’s kind of a running joke that NYLT is a camp for talking (laughs).
That’s a useful skill.
For sure. Communication is something that initially we were really great at. As we got further into running Impeesa, we started getting distant from each other and that’s when problems started arising. We started getting really stressed and upset with each other. That’s because we stopped communicating. Later in the game we started communicating again. That’s when we decided to chill for a bit. Let’s put Impeesa on hiatus. Communication was probably the best habit we had. Whenever there was a problem, immediately we were in a Google hangout. We were trying to plan a business meeting. We knew if we were all on the same page, we could do anything we wanted. Communication, definitely. And then we made it a habit to vote on everything. Nobody operated outside of the group. Every purchase, as annoying as it was, we had a poll in our Facebook group chat and voted “yea” or “nay.” If it’s “nay” then we deal with the consequences. Everything was a group effort. That’s what made us so successful was that we were all on the same page. Successful in our eyes as far as consistently learning and getting out of the red a little bit. Communication is everything in my opinion. That was our best habit. When we really started to get stressed with each other and not like each other so much it’s because we weren’t communicating. Communication, without a doubt, was our biggest strength.
What advice do you have for beginning entrepreneurs?
It depends if you are going into a parternship…always be on the same page. Expectations are everything. Going into management and having experience with management in my current job and Impeesa you learn that managing expectations is the only way to really accomplish a task. Because if everybody is not expecting the same thing, if somebody has a misunderstanding of what they are going to get out of this or what we are working towards, they are going to be operating in a completely different plane than us. Communicating with each other and being on the same page and respecting each other’s time and schedules. As high school students and Boy Scouts we all play sports. We all have jobs.
You guys are busy.
Super busy. It’s so hard to find time. There were times we just got frustrated with each other, and decided we cannot function like this. When you try to cut someone out of the picture it doesn’t work. We just stopped doing that. If you’re looking at a partnership, be a good person within your group. Respecting the fact that these other three guys who literally run our company just as much as I do are people, too. They have schedules. They have expectations. They have a way they want to operate, so let’s make sure we’re all operating the same way. Compromise. A lot of the time we didn’t need to compromise because we did communicate so well. But it really comes down to communication and expectations, I think.
Anything else you’d like to share with our readers?
Starting the business isn’t the hard part. So just do it, but be ready to fail. Be ready to be wrong because that’s the most important thing you’re going to do. Is fail and be wrong. That’s where you learn to be right.
And that’s OK. Failure is OK.
That’s the best thing. Succeeding is pretty great, too (laughing).
Where can we learn more about Impeesa?
You can visit our website which we’re kind of revamping for our hiatus so it’s information-based. www.impeesa.us is where you can learn a little more about us. Just bear with us as we reconfigure it so it carries more information.
Your Facebook page, too?
Thank you. That’s was great.
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