3 Lessons from a College Side Hustle that Exploded into a $200 Million Business

Welcome back to another edition of The Wise Exit!

In today's edition, you'll learn:

• How a college side hustle exploded into a $200 million cookie empire.

• A step-by-step guide to qualifying the right buyer for your business.

• Why making yourself obsolete is the key to your company's success.

Let's dive in...

3 Lessons from a College Side Hustle that Exploded into a $200 Million Business

Picture this:

It's 2002, and college student Seth Berkowitz is craving something sweet in the middle of the night. But instead of settling for stale vending machine snacks, he has an idea that will change his life forever.

Fast forward to today:

That late-night craving has turned into Insomnia Cookies, a $200 million empire.

Talk about a sugar rush.

Here are three lessons you can learn from Seth's journey:

1. Spot a gap in the market (and fill it with cookies).

Seth realized that late-night food options for college students were pretty limited.

Pizza? Boring.

Greasy fast food? Meh.

But warm, gooey cookies delivered to your dorm room? Now we're talking.

Seth turned a simple idea into a thriving business by identifying this opportunity.

He turned his initial $150 investment in baking supplies into $10,000 in profits in just one semester.

Not too shabby for a college side hustle!

The lesson:

The best business ideas come from solving your own problems.

2. Get your hands dirty (and covered in cookie dough).

In the early days, Seth was a one-man cookie army.

He handed out free samples on campus, plastered flyers in dorms, and even went door-to-door selling his sweet treats.

When the school newspaper featured him on the front page, orders exploded from 3 to 80 a night.

Talk about a sugar high!

The takeaway:

Don't be afraid to get personal with your marketing. The best way to build a loyal customer base is one handshake (or cookie) at a time.

3. When life gives you lemons, make lemon cookies.

Seth's journey wasn't all milk and cookies. The 2009 financial crisis hit hard, forcing him to downsize his team and juggle multiple roles himself.

But instead of throwing in the towel (or the oven mitt), Seth persevered.

His perseverance led to him expanding the business, moving to a bigger kitchen, and even bringing on a co-founder.

His determination paid off when Krispy Kreme came knocking in 2018, leading to a sweet acquisition deal.

The lesson:

Entrepreneurship is a rollercoaster.

Buckle up, hold on tight, and don't let the tough times crush your cookie dreams.

From a college kitchen to a $200 million empire, Insomnia Cookies proves that with a dash of creativity, a sprinkle of hard work, and a whole lot of determination, even the simplest ideas can rise to greatness.

Now, who’s craving a warm cookie?

Featured Blog 📰

So, you've decided to sell your business. Congratulations!

But before you pop the champagne, there's one crucial step you can't afford to skip:

Qualifying your buyers.

It's not just about finding someone with deep pockets…

You need a buyer who shares your vision, respects your company culture, and has the chops to take your business to the next level.

In this blog post, we break down the process of qualifying buyers into easy-to-follow steps.

We cover everything from creating a detailed buyer profile to conducting thorough due diligence.

Click here to learn more: A Step-By-Step Guide to Qualifying a Buyer

M&A Tips from Brian Dukes 💡

As a founder, your ultimate goal is to make yourself obsolete.

Sounds counterintuitive, I know. But hear me out.

If your business can't run without you, it's not a business. It's a job.

And that's a recipe for:

Burnout. Stunted growth. And a disappointing exit.

The mark of a truly successful company is:

It hums along smoothly, even when you're not there.

Want 5 strategies to make this a reality for your business?

Learn more by reading this post on LinkedIn.

That's all for now.

Tune in next Wednesday for another set of M&A lessons, and have a great rest of the week.

Best,

Brian Dukes