Molson Hart, the visionary founder behind Viahart, a direct-to-consumer (D2C) toy brand, and Edison, a legal technology company, posits a compelling strategy for aspiring entrepreneurs: cultivate two businesses simultaneously. His philosophy centers on the notion that one venture should offer significant scalability, robust profitability, or serve as a critical diversifier of risk, thereby fortifying the entrepreneur’s overall financial and operational resilience. This perspective, shared during a recent discussion that also featured Sean Frank, CEO of Ridge wallets, has prompted considerable reflection on the optimal characteristics of such a complementary enterprise, particularly for established D2C brand owners seeking to expand their portfolios without introducing undue stress.
The author, a seasoned D2C entrepreneur himself and a two-time guest on the podcast where Hart’s insights were shared, acknowledges a personal commitment to his own D2C brand, Beardbrand, launched in 2014. Hart’s suggestion, however, has ignited a thoughtful exploration into the creation of an "attractive second company" – one that not only enhances his life but does so without generating additional headaches. This article diverges from its typical interview format to delve into the author’s conceptualization of his ideal secondary business, a venture designed for seamless integration and strategic advantage.
Defining the Ideal Secondary Business: A Framework for Success
The envisioned optimal business is an e-commerce brand specializing in products that are exceptionally easy to ship. These items would likely be small in size and, crucially, consumable. The core of this strategy lies in fostering customer loyalty through repeat purchases, with an anticipated customer acquisition cycle involving two to three subsequent buys after the initial purchase. The product portfolio would strike a delicate balance between perceived value and a degree of prestige, ensuring that gross margins are sufficiently robust to at least cover the costs associated with customer acquisition advertising, particularly on platforms like Meta. Furthermore, the products must appeal to a market large enough to allow for effective differentiation, enabling the brand to niche down and precisely target its intended audience.
While the concept of a "consumable" product might immediately bring to mind items that are used up and repurchased, the definition can be broadened. Sean Frank of Ridge, for instance, offers a perspective where even durable goods like wallets can exhibit consumable characteristics through regular product refreshes and evolving fashion trends that entice repeat buyers. However, for the author’s specific ideal, the definition leans towards items that are ingested or applied to the body daily, encompassing categories such as food, supplements, and personal care goods. This broad interpretation suggests a strategy of observing consumer behavior in high-traffic retail environments like grocery stores, Walmart, and Target, identifying popular purchases, and pinpointing established brands that may be ripe for disruption due to a lack of innovation or a dated market presence.
Case Studies in Consumable Brand Success
The landscape of successful D2C brands in the consumable space offers compelling examples that illustrate the principles of this entrepreneurial strategy.
Native: Founded by Moiz Ali, a previous podcast guest, Native initially launched in 2015 as a direct-to-consumer deodorant brand. Its rapid ascent to $100 million in annual revenue within a mere couple of years is a testament to its focused product offering and effective D2C model. Crucially, Native has since expanded its product line significantly, now offering a comprehensive range of consumables including skincare products, hand soaps, toothpaste, and hair care items. This evolution demonstrates the scalability of a core consumable category and the potential for brand extension into related product verticals, capitalizing on established customer trust and brand recognition. The success of Native underscores the power of identifying a core consumer need and then strategically broadening the product offering within that category.
Harry’s: Launched in 2012, Harry’s entered the market as a D2C provider of shaving goods, positioning itself as an affordable and high-quality alternative to dominant legacy brands like Gillette and Schick. The company’s remarkable success is largely attributed to its focus on essential, daily-use staples that resonate with a broad consumer base. By offering a compelling value proposition and a streamlined customer experience, Harry’s disrupted a well-established market, demonstrating that even mature categories can be revitalized with a fresh approach to branding, product design, and distribution. The company’s ability to build a loyal customer base through consistent quality and accessible pricing highlights the enduring appeal of well-executed D2C strategies in essential consumer goods.
Seven Sundays: This brand, which began its journey at a Minneapolis farmers’ market in 2011, recognized a significant gap in the cereal market. The founders identified that many existing manufacturers were using glyphosate-treated wheat and high-fructose corn syrup in their products. In response, they developed and offered a cleaner, healthier, and consequently higher-priced granola. Seven Sundays has since evolved into a Certified B Corporation and a formidable e-commerce player. Their success narrative illustrates the potential for premiumization within a crowded market by appealing to a growing segment of health-conscious consumers willing to pay more for superior ingredients and ethical production practices.
Goodles: Entering the market in 2020, Goodles targets a product category with universal appeal: healthy macaroni and cheese for children. The brand distinguishes itself with nutritious formulations presented in vibrant, colorful packaging and accompanied by playful product names like "Shella Good" and "Twist My Parm." Goodles represents a modern approach to challenging an entrenched giant, Kraft, in a massive market. Their strategy hinges on offering a tangible improvement in product quality and a more engaging brand experience for both parents and children, proving that even seemingly basic food items can be reimagined for contemporary consumers.
These examples collectively illustrate the viability of building successful D2C consumable brands by focusing on essential needs, offering superior quality or value, and employing innovative branding and marketing strategies.
Identifying Opportunities for Differentiation and Growth
The opportunities for entrepreneurs looking to establish a successful secondary business in the consumable space lie in identifying sizable markets currently dominated by established, yet potentially complacent, providers. The key to differentiation, as highlighted by these successful brands, can be achieved through several strategic avenues:
1. Superior Quality and Ingredients
A primary method of distinction is by offering demonstrably better quality products. This can manifest through the use of superior ingredients, more ethically sourced components, or more advanced manufacturing processes. For instance, parents who prioritize nutritional content for their children are less likely to opt for conventional, highly processed mac and cheese options. Instead, they would be receptive to brands like Goodles, which offer a healthier alternative, even at a higher price point. This willingness to pay a premium for enhanced nutritional value or ingredient integrity is a powerful driver of customer loyalty and brand advocacy. The market for health-conscious consumers continues to expand, creating fertile ground for brands that prioritize quality and transparency in their ingredient sourcing and product formulation.
2. Innovative Packaging and Presentation
Entrepreneurs often overlook the significant impact of innovative packaging and product presentation. A thorough examination of retail shelves in supermarkets, big-box stores, and even at industry trade shows can reveal opportunities for creative design. Packaging is not merely a container; it is a crucial touchpoint that communicates brand identity, product benefits, and user experience. The author recalls observing a cosmetic cream package where the user twisted a cap to dispense the cream into a built-in mixing bowl at the top, allowing for on-demand personalization before application. Such thoughtful and functional design can elevate a product from utilitarian to desirable, enhancing perceived value and creating a memorable customer interaction. In the age of visual social media, distinctive packaging can also become a powerful organic marketing tool, encouraging user-generated content and widespread brand visibility.
3. Strategic Branding and Brand Architecture
While it may be tempting to create a brand name that directly reflects its products or target audience, this can sometimes create future limitations. A more strategic approach involves building a brand that has the flexibility to evolve as market dynamics shift. For example, Vacation.inc, founded in 2021, initially launched with sunscreen but has strategically positioned itself to easily expand into other related products and services within the broader sun care and lifestyle market. This flexible branding allows the company to adapt to changing consumer preferences, emerging trends, and new product development opportunities without being constrained by an overly specific initial identity. A strong brand narrative that resonates with core values and aspirations, rather than just functional benefits, can foster deeper customer connection and long-term brand equity.
The Art of Entrepreneurial Innovation: Beyond Replication
A critical piece of advice for entrepreneurs is to avoid the temptation of simply replicating successful business models. While learning from successful entrepreneurs, such as those featured on podcasts or in industry publications, is invaluable, directly copying their ventures is rarely a wise strategy. Often, the perceived success of an entrepreneur may not yet have been tested over the long term, and even if it has, attempting to replicate it will inevitably lead to increased competition for an already established audience. Instead, the true art of entrepreneurial innovation lies in deconstructing the tactics and principles of successful brands and applying them to entirely different markets.
For instance, understanding the customer acquisition strategies of a successful D2C wallet company like Ridge, or the brand-building approach of a personal care brand like Native, can provide a blueprint. However, instead of launching another wallet company or a direct competitor in the deodorant space, an entrepreneur might apply those learnings to a different industry altogether – perhaps a niche food product, a specialized pet care item, or an innovative home goods category. The goal is to identify underserved needs, leverage proven business frameworks, and inject creativity and unique value propositions.
Ultimately, the pursuit of a second business should be an enjoyable and fulfilling endeavor. The process of identifying market opportunities, developing innovative products, and building compelling brands can be a source of great personal and professional satisfaction. By embracing a strategic approach to diversification, focusing on consumable products with repeat purchase potential, and differentiating through quality, packaging, and branding, entrepreneurs can build resilient and rewarding businesses that complement their existing ventures and enhance their overall entrepreneurial journey. The enduring lesson is to remain curious, adaptable, and always on the lookout for opportunities to create something genuinely new and valuable in the marketplace.
