Mike Tecku first appeared on this podcast in 2019 as an Amazon market vendor. Shortly afterward, he bought that enterprise, a maker of floormats. He retired, turned bored, and in 2022 launched Momentum, a direct-to-consumer dietary shake producer. He and I mentioned that enterprise final yr in his second look.
He’s again. Momentum Shake is flourishing, as is Tecku. He’s advanced from the nuts and bolts of earning profits to reaching a objective, constructing a workforce, and self-improvement. “If I’m not rising, I’m dying,” he informed me.
Our complete audio dialog is embedded beneath. The transcript is edited for size and readability.
Eric Bandholz: Your entrepreneurial journey is spectacular.
Mike Tecku: Development provides me that means and a way of being alive. If I’m not rising, I’m dying. The American dream of not having to do something runs counter to human nature. When I retired, I bought good at golf. I learn many books however couldn’t shake the urge to unravel issues. I’d be in a retailer and assume, “That is an fascinating product. I’m wondering if I might make this.”
I bought depressed once I wasn’t engaged on something. I might really feel myself shrinking. A few yr into that, I made a decision I wanted to re-embrace being an entrepreneur. That’s simply who I’m. These are my items. I wished to make use of my items and strengths, and now I had the privilege of utilizing them in a method that I wished, not simply to outlive or earn money.
The world is consistently altering. To make one thing excellent is not possible, however you’ll be able to pursue it by regularly adjusting. The farther you get alongside, the extra exact the vacation spot is, and the extra attuned you might be to your aim. You acquire data and make higher choices. Whenever you’re actually into one thing, you’re regularly rising and perfecting your artwork.
Bandholz: How does an organization attempt for perfection?
Tecku: You need to develop belief together with your clients in order that they know you have got their greatest curiosity at coronary heart. If we modify the flavoring of our shakes, clients fear we’re making it cheaper when the fact is the other. You have to be clear with clients and talk that you just need to add extra worth with out growing their prices. It’s important to zoom out past provide and demand. What benefit are you able to carry to the market moreover making more cash?
I need to produce a product 10 occasions higher than everyone for a similar value. Most companies are simply media and advertising platforms. They don’t contact the product. In the event that they’re doing something in any respect, they’re promoting commodities. I need to make one thing that could be a masterpiece and stacks a lot worth into it.
That wasn’t occurring with our outsourced producer. I like these folks, however they’ll’t innovate on the velocity I need. I can minimize prices by 30% once I take over manufacturing. I can shrink money movement, enhance amount, cut back prices, and enhance high quality. The one method to try this is thru proudly owning the manufacturing course of.
Bandholz: What are the pitfalls of in-house manufacturing?
Tecku: Step one is believing it’s doable. I spent 10 years considering manufacturing was difficult and past my experience. However I needed to begin questioning myself. Why can’t I assemble a workforce of clever, hardworking people? Why can’t I resolve these issues?
The aim is to make manufacturing simple. If I can construct one thing easy and scalable, will probably be safer and dependable. I wish to forecast 5 to seven years down the street. What are my objectives? I need to scale to 100 million {dollars}. What does that seem like within the variety of items I have to make a day and the machines able to that?
I’m shopping for machines to simplify and cut back the possibility of error. We are able to’t remove errors, however we are able to streamline processes, steps, and inputs. The machines I’m shopping for ought to be capable to make a thousand baggage an hour with one worker. That’s a scalable system.
Bandholz: You might have a single SKU incomes hundreds of {dollars} month-to-month. You’re not touching it. There’s magnificence in that.
Tecku: It’s stunning as a result of it frees me for development and enchancment. Recall the outdated phrase, “Work on your online business, not in it.” That may’t change. It’s a must to be on prime trying on the items. My job is decision-making. I need two hours of hyper-focused considering each day.
Continuously executing will not be the most effective use of my abilities. Some persons are method higher at it. I think about all parts of the enterprise to be belongings. The manufacturing facility I’ve been constructing for the final six months is an asset. I need it to run completely with out me. That includes the machines, the house, the workforce — each determination.
Bandholz: I wrestle with shifting from the execution function into technique and decision-making.
Tecku: I attempt to test with my workforce to see in the event that they want one thing from me. I’ve to remind myself that is what they’re good at and that they admire my belief in them. If you wish to create unbiased individuals who assume for themselves, you need to allow them to fail. My job is to find out the subsequent step. There’s no proper path. It requires plenty of strolling round, studying books, speaking to people, and paying consideration.
Bandholz: The place can people observe you?
Tecku: Our website is MomentumShake.com. I’m on LinkedIn.
