🔑 Key Takeaways
- A strong bond and shared passion for entrepreneurship can lead to great success, even starting from humble beginnings. Family values like work ethic and a focus on relationships can also be important for business growth.
- When starting a business, taking risks and having a positive attitude is crucial. Despite setbacks, perseverance and a supportive circle can lead to success.
- Success requires a combination of quality, taste, and customer service. Trying new things, being open to learning, taking risks, and seizing opportunities can turn a passion into a thriving business.
- Before starting a business, take the time to research and explore all options. Don't rush into or settle for what's available, invest in something you believe in for the long run.
- Success in customer service requires investing in high-quality equipment, seeking expert advice, and creating a welcoming atmosphere through positive energy and attention to detail.
- Meeting passionate and knowledgeable people in your industry and finding a mentor can change the course of your life. Networking and learning from those with experience can be crucial to success.
- With persistence, creativity, and a willingness to experiment, anyone can start a successful business, even in a crowded and competitive market. A unique brand name and menu can set you apart from the competition.
- Start small, be adaptable and creative. Build relationships with personal connections and stay positive. Perseverance is key.
- Prioritize building strong relationships with customers through excellent products and word-of-mouth marketing. Respect and clear communication, even in tense situations, can foster lasting partnerships. Be open to new opportunities for organic growth.
- Taking inventory of dreams by writing down personal and professional goals can help manifest them and drive towards their achievement, just like how it helped Travis Boersma and his brother Dane to expand Dutch Bros from a small start-up to a successful company with multiple branches, employees, and diverse offerings.
- To achieve success, identify your desired outcome and take massive action towards it. Look for innovative ideas that make you unique and adaptable, like Dutch Bros Coffee's custom trailer. Collaboration and client partnerships can lead to growth.
- Commitment to product, staying frugal, and proper financial management are essential for business success. Differing priorities and beliefs can lead to challenges, but resilience and learning from experience can lead to growth and a strong brand identity.
- Investing in something you believe in and continuously growing and expanding can make a huge difference. Take risks and have confidence in your decisions, even if it takes time and challenges. If you're not growing, you're dying.
- Even in tough times, the support of a community and a positive attitude can help overcome challenges and keep things going.
- When facing a health crisis, ruling out possibilities and exploring all treatment options is important. Careful choices around ALS treatment and seeking support from loved ones helps cope emotionally and mentally. Avoid substance abuse and seek help instead.
- Companies must prioritize their values and principles, make tough decisions if necessary, and teach their culture to others for long-term sustainability and profitability.
- Building a successful business goes beyond sales; it involves fostering relationships and a positive team culture. Hire those who align with your values and vision to promote growth and prosperity.
- Starting small and focusing on customer service can lead to big success. Don't be afraid to innovate and create your own products to better serve your customers.
- Dutch Bros, known for its identity with blue Rebel, went from private to public with a $500 million IPO. Despite its growth and revenue, the focus remains on serving excellent coffee, and the CEO emphasizes the company's purpose over wealth.
- Opportunities provided by businesses, along with hard work and luck, can lead to success in life. Navigating the river of life requires planning, using available resources, and being open to what lies downstream.
📝 Podcast Summary
The Boersma Brothers: From Dairy Farm to Billion-Dollar Business
Travis and Dane Boersma started Dutch Bros, a billion-dollar beverage business with humble beginnings as an espresso cart in a grocery store parking lot. Their special bond and passion for entrepreneurship drove them to success and over 700 locations across the United States. They grew up working on their family's dairy farm and learned important values like work ethic and family orientation. Their father, a second-generation dairy farmer, opened an RV business in the 80s to escape the grind. The Boersma brothers were entrepreneurial and had a lot of dialogue about business ideas. Their story is a testament to the power of having a close relationship and a shared sense of purpose.
Taking Risks and Perseverance in Entrepreneurship
Starting a business venture requires taking risks and having a positive attitude towards life. Travis Boersma and Dane Boersma talked about various business ideas, such as having purebred Holsteins and owning a high-end dairy or opening baseball batting cages. Dane even owned a Dairy Queen franchise at the young age of 22 and had a dream to own an organic dairy. However, the dairy farm ran into trouble due to not adhering to environmental regulations, and the family had to sell the cows. Despite this setback, the Boersma brothers did not give up and decided to pursue a new business venture, which led to the birth of the espresso business. The lesson learned from this story is that perseverance and having a supportive family or friend circle can lead to successful entrepreneurship.
The Journey of a Coffee Entrepreneur
The espresso culture in America was still in its first wave when Travis Boersma had his mind-blowing vanilla latte that inspired him to start a coffee cart business. His experience shows that introducing a new product or service doesn't necessarily mean it will be an instant success. Sometimes it takes finding the right combination of quality, taste, and customer service to create loyal customers and fans. Travis' journey also demonstrates the importance of trying new things, chasing down leads, and being open to learning about new cultures and flavors. By not being deterred by setbacks and taking risks and seizing opportunities, anyone can turn their passion into a thriving business.
The Importance of Research and Exploring All Options in Starting a Business
When Travis Boersma and his friend wanted to enter the espresso cart business, they explored various options and traveled across the I-five Corridor to take a look at different coffee establishments. They even went to Boyd's Coffee, who also sold coffee carts and packages and wholesale coffee to various restaurants. However, they were looking for something higher end and better equipped to handle volume. They wanted to be able to make two espresso shots at the same time instead of one. Their journey taught them that researching and exploring all options is essential before making any business decisions. They did not rush into or settle for what was available because, in the long run, investing in something they believed in was the right choice.
The Secret to Dutch Bros Coffee's Success: Timing, Quality, and Positive Vibes
The founders of Dutch Bros Coffee understood the importance of timing and quality in customer service. They ensured that they had the knowledge and resources to provide the best possible service, including investing in high-quality equipment and seeking out expert advice. They also recognized the value of good vibes and positive energy in creating a welcoming atmosphere for their customers, and made efforts to find places that matched this spirit. Their commitment to excellence and attention to detail helped to establish Dutch Bros Coffee as a successful and beloved brand.
The Importance of Networking and Finding a Mentor in the Coffee Industry
Meeting passionate and knowledgeable people in the coffee industry can open up a world of possibilities. Travis and Dana's encounter with Paul Layton, the owner of a small coffee roastery, changed the course of their lives. They were impressed by his enthusiasm and dedication to coffee. With his help, they learned about different coffee varietals, how to pull shots, steam milk, and make cappuccinos. He even gave them advice on what coffee cart equipment to buy. They ended up buying beans from him and worked closely with him to develop their business. Networking and finding a mentor in your industry can be crucial to success.
How Dutch Bros Defies Traditional Coffee Branding with Passion and Innovation.
Travis Boersma and his brother started Dutch Bros by having fun and experimenting with different coffee blends, until they found the perfect menu. They also decided to use steamed chocolate milk instead of traditional syrups. Their persistence and creativity paid off as they finally set up their push cart business in Fred Meyer store after three months. Their unique name 'Dutch Bros' shows their defiance towards traditional coffee branding. This shows that with passion and innovation, anyone can start a successful business, even when faced with challenges like a learning curve in a new market or problems with menu selection.
Qualities Needed for Starting a Business
Starting a business involves taking risks and facing challenges. Entrepreneurs need to be creative and adaptable, such as finding a new location for their business when faced with obstacles. Building relationships and networking can also be important for success, such as using personal connections to secure a new location. It is also essential to stay positive and support each other throughout the process, as starting a business can be overwhelming and challenging. Starting small can be a good strategy for entrepreneurs to test the market and learn from their mistakes, before scaling up their operations. Overall, perseverance, creativity and adaptability are key qualities for building a successful business.
Success through Small Steps and Positive Relationships
Starting small with low overhead and investing in word-of-mouth marketing can help businesses succeed even during tough times. Building relationships with customers and offering excellent products can lead to organic growth and positive feedback. It's also important to be respectful of others and communicate clearly, even in tense situations. Sometimes taking a moment to understand someone's perspective and offering a small gesture of goodwill, like free coffee, can lead to lasting partnerships. This story shows that success can come from unexpected places and that being open to new opportunities, even if they are outside of your comfort zone, can pay off in the long run.
The Power of Writing Down Goals for Personal and Professional Success
Writing down personal and professional goals is like taking inventory of our dreams. It helps to manifest those goals and drive towards them. Travis Boersma and his brother Dane mapped out their goals for the future of their business - Dutch Bros - sitting on the living room floor, and they laughed because some goals seemed farfetched. However, that exercise helped them to open 3 more Pushcarts, Walmart in Grants Pass, RCC in Grants Pass, and Walmart in Medford. They began to have employees and dreamed of opening locations across 11 Western United States, having a drive-through, building a coffee house, and roasting their coffee, among other things.
Taking Massive Action towards Your Goal: The Dutch Bros Coffee Story
Knowing your outcome and taking massive action towards it can lead you to success. The founders of Dutch Bros Coffee realized that their push cart gig wasn't successful and decided to change their environment by creating their own permanent location. They came up with a unique custom trailer that served coffee as a drive-through. This innovative idea wasn't a thing back then, but it became their niche and exceeded three to four hundred dollars a day in volume. Their success continued as they agreed to work with a customer named Marty Mckenna, who wanted to replicate their business in Medford. Success comes with taking the right actions towards your outcome and looking for innovative ideas that make you stand out.
The Journey of Dutch Bros. through Franchising and Lessons Learned
The growth of Dutch Bros. began through franchising, initiated by a man named Marty who approached the co-founders with a proposal to take their concept to Medford. They partnered up, but challenges arose due to differing priorities and beliefs. Marty didn't want to re-invest the profits to grow the business, which led to disagreements and ultimately a decision to end the partnership. Nevertheless, this experience taught the co-founders (Travis & Dane Boersma) valuable lessons on the importance of commitment to the product, staying frugal, and proper financial management. Despite the challenges, Dutch Bros. has managed to expand to over 400 locations across the US with a unique and strong brand identity.
How Taking a Risk Can Lead to Great Success
Taking a risk and investing in a business can lead to great success. Despite not having a financial advisor, the founders took the plunge and bought out their partner, carrying the paper at 7%. This risky investment paid off and became the lifeblood of the company for growth and investments. In addition, expanding through franchising became a cash cow, with franchise owners investing their own capital into fully equipped mobile units. Investing in something you believe in, and continuously growing and expanding, can make a huge difference, even if it takes time and challenges. As the founders say, if you're not growing, you're dying.
The Importance of Community and a Positive Attitude.
In 2004, Dutch Bros faced a series of unfortunate events. Firstly, there was a fire at the warehouse which destroyed everything, including the coffee roasters. Secondly, Travis' brother Dane was diagnosed with ALS, which is a progressive neurological disease. These events marked the beginning of the dark years for Dutch Bros. However, the community members came forward to help and provided support by suggesting that they may want to consider antidepressive at some point because this is going to be a long road. Despite the loss, the team was determined to keep things going and were grateful for the support they received. This shows the importance of community in tough times and a positive attitude towards overcoming challenges.
Coping with Serious Illness and Seeking Support.
When faced with a health crisis, ruling out different possibilities through testing and time is crucial. Coping with the diagnosis of a serious illness is emotionally and mentally difficult and can take a toll on a person's well-being. It's important to turn over every rock and explore all possible avenues of treatment. ALS is a devastating illness that affects breathing, limb control, and speech. It's important to make conscious choices about treatment and care once the illness progresses. Support from family and loved ones is crucial during difficult times. Substance abuse is not a healthy choice to cope with stress, and it's important to seek help and support instead.
Prioritizing values and tough decisions lead to long-term business success.
Travis Boersma was able to manage the business while suffering himself due to his priority towards Dane and his family. He felt compelled to perform well to ensure that he was able to provide for them. In 2008, the company drew a line in the sand and stopped the growth with franchising and evaluated the best way to grow. They taught culture to people and preferred not to sell franchises anymore to those who just had business acumen. This shows that businesses should prioritize their values and principles and take tough decisions if needed to ensure long-term sustainability and profitability.
Creating a Culture of Love in Business
Building a business is not just about selling a product, it's about creating relationships and a culture of love within your team and with your customers. Dutch Brothers Coffee changed their approach from solely selling franchises to anyone who could finance it, to only selling to people who had worked within the system and understood the company culture. This helped to bring down the barrier to entry and allowed the markets to flourish. The loss of Dane, Travis Boersma's brother and mentor, was a major blow, but his teachings and values were ingrained within the company and continued to guide their decisions and culture.
Growing a Business with a Personal Touch
Travis Boersma talks about his experience of running the company without Dane and how they grew the business without losing the personal touch. They slowed down the growth initially, but in 2009 started opening new stores with their own people only, and opened 20 locations in 2011. The stores became popular with high school and college students because of the service, music, and Rebel energy drink. They started serving Red Bull over ice, but it wasn't enough for their growing needs, so they decided to make their own energy drink, which turned out to be a game-changer for the organization. They were hesitant to continue with Red Bull as the company was rigid about serving their product only in a can.
Dutch Bros: From Identity to IPO
Dutch Bros started with its own identity - Dutch Pro's, blue Rebel, and exploded into one of the biggest sellers. Though it has morphed into company-owned stores, with regional operator opportunities, it still serves excellent coffee with a nice blend. After gaining huge revenue of around $280 million and inducting an outside investor in 2018, the company finally went public in 2021 and raised a whopping $500 million in the IPO. The ambition is to get to 4,000 stores. Travis Boersma believes that the company will not arrive until it departs, and all the wealth and money are secondary to him.
Businesses and Success in Life
Opportunities for growth and success are crucial in any community, and businesses can provide such opportunities. Luck and hard work both play a role in achieving success. The loss of Travis Boersma's brother taught him that he cannot control everything and that life has a destination. The key is to navigate the river of life by using the resources available, planning for the future, and walking downstream to see what lies ahead. In doing so, businesses can provide support and infrastructure for individuals to climb into seats of success. With hard work, luck and opportunities provided by businesses, anyone can achieve success in life.