In line with Will Nitze, founder and CEO of IQBAR, success in a aggressive market requires discovering its uncompetitive niches. He did that along with his flagship protein bar, which is plant-based, low-sugar, and plainly labeled. That was seven years in the past when he launched the corporate with a $75,000 Kickstarter marketing campaign.
Quick ahead to 2025, and IQBAR additionally makes IQMIX (hydration) and IQJOE (espresso). All promote mind well being with out competing towards one another.
Will and I not too long ago mentioned his journey, from the preliminary capital elevate to scaling income, including merchandise, and managing wholesale channels. All the audio of our dialog is embedded under. The transcript is edited for readability and size.
Eric Bandholz: Give us a fast rundown of who you might be.
Will Nitze: I’m the founder and CEO of IQBAR. Our hero product is dietary bars, however we additionally make IQMIX for hydration and IQJOE for fast espresso. Roughly 55% of our income is wholesale; our direct-to-consumer ecommerce web site and Amazon account for the stability. We’ve raised just below $10 million since our launch 7 years in the past.
Bandholz: How do you stand out in such a aggressive market?
Nitze: The secret is breaking down the competitors into subcategories. Within the protein bar market, the saturated class is animal-based substances. However while you deal with plant protein, low sugar, and clear labels, you possibly can carve out an area with a lot much less competitors however nonetheless substantial. It’s about discovering the uncompetitive niches throughout the broader aggressive panorama.
I acquired into this house as a private ardour. I used to be dissatisfied with my software program job and started exploring low-carb diets, finally touchdown on keto. I used to be particularly occupied with mind meals and seen that, on the time, nobody was providing ready-to-eat choices. Most mind diet is available in tablet or powder kind. I launched a Kickstarter marketing campaign that raised $75,000, validating the idea. From there, we pivoted based mostly on buyer suggestions, specializing in protein and clear labels.
The mind angle is helpful and differentiated, nevertheless it’s the deal nearer, not the deal opener. Folks store our merchandise based mostly on the protein depend — the place it got here from and the way full it’s — after which sugar.
Our technique has been to develop the product line with out cannibalizing our core bar product. Many manufacturers prolong their product traces in ways in which compete with their present objects, like shifting from bars to peanut butter cups. We wished our new merchandise — hydration and occasional — to enrich our bars, aligning with our mind and physique diet mission however not competing. We additionally thought of shelf stability and ease of manufacturing.
Bandholz: You could have simply 9 staff. How do you keep such a lean group whereas scaling?
Nitze: Recognizing my weaknesses is crucial. I’m not nice at hiring, so I depend on a trusted circle. My spouse is our chief advertising and marketing officer and head of ecommerce. I preserve a detailed reference to everybody on the group. We use exterior companies for pay-per-click adverts, SEO, and Amazon administration. We work intently with these companions and our producer to maintain issues operating easily with fewer full-time staff.
We by no means decide to long-term company contracts with out an exit clause. Most companies function on annual phrases, however we guarantee we will go away with 30- or 60-day discover. We’ve labored with our Amazon company for over two years; they know our enterprise inside out. We applied a bonus construction for them to incentivize efficiency. This deal labored effectively for either side, because it aligns their targets with ours.
Bandholz: How did you develop your wholesale technique?
Nitze: Once more, our enterprise shall be 55% wholesale this 12 months. We imagine in an omnichannel method, particularly brick-and-mortar retail. Digital-first is crucial for constructing credibility within the retail world. We are able to present potential retailers information from our ecommerce web site, such because the variety of prospects of their commerce space. Brokers play a key function in retail development, particularly these related with giant chains, similar to Walmart and Costco.
The secret is to work with retailers who pay shortly. Amazon, for instance, pays each two weeks. Past that, elevating cash is essential. Some individuals idolize bootstrapping, however elevating funds means that you can scale shortly. Within the early levels, you want capital to fund stock, which turns into the spine of your corporation. One other key’s having a excessive gross margin, which lets you reinvest into extra stock. Finally, scaling up helps keep money move.
Bandholz: Was it exhausting discovering a producer?
Nitze: It was a problem. Our first co-packer — the corporate making the meals and packaging and labeling it — was nice for small volumes however couldn’t scale. Finally, we switched to a co-packer that would deal with greater volumes. This course of was painful, because it meant high quality management disruptions. However as soon as we discovered the best associate, we might scale considerably. Now, we have now a co-packer that may handle tens of millions of items yearly, and that’s been essential to our development.
Bandholz: The place can individuals contact you?
Nitze: Attain me by means of our web site, EatIQBar.com, or LinkedIn.
