#82 - Real Stories Of Building BPN: Cash Flow Issues & Taking Massive Risks To Maintain Full Equity

This episode of the podcast flows out of Nick’s desire to share what building a business really looks like, as well as his conviction that one of the best ways to share this is through story.  Rather than spending the episode interviewing a guest, he spends it giving listeners narrative snapshots of his experience as an entrepreneur.  These snapshots depict the growth of a company, building of an infrastructure within the business, getting the company off the ground, navigating cash flow issues, and more.  One of the biggest takeaways Nick hopes to impress on listeners is that the best way to get started...is to just get started!

Nick first shared about establishing the infrastructure behind BPN.  In 2012, Nick decided as a college student to start the brand.  He began with a $20,000 loan, and what he lacked in experience he made up for in passion; he simply decided to start, and he learned as he went.  Just recently, Nick was reminded of these early days when he found a series of short videos on his computer.  These are awkward clips he made as the company was starting, and they show not only how far he’s come, but how important it was to get started.  Nick shared the clips in an Instagram video; this video and the response to it actually provided the impetus for this episode! 

But while Nick’s recent Instagram content has resonated with others, another story highlights just how unpleasant his initial days trying to build his business online were!  Soon after starting BPN, Nick joined the bodybuilding.com forum and was surprised when his first post received only hate!  He had a similar experience when he later posted his first YouTube video.  While both experiences were tough, they ultimately taught him that he had to put himself out there, and that holding back out of fear of negativity was unsustainable and unproductive.  Rather than holding back, he needed to go all in on BPN.

A few years later, the company had grown, but as all product-based companies do, it required a steady influx of cash to continue running and growing.  Nick and his brother, Preston, held and continue to hold 100% equity in the company; so, the business has required profound commitment from them financially.  Nick put nearly all the money he made in the military into the business, and one day, he even liquidated his entire Roth IRA in order to provide the business with a needed cash injection.  In doing so, he was declaring yet again that he was all in on BPN. 

Preston made similar commitments.  Before he transitioned out of the military and while he was stationed in South Korea, Nick asked Preston to leave a good job and move to Texas to help with BPN.  Nick couldn’t pay Preston, but could only offer housing and a vehicle.  Preston didn’t hesitate, but immediately moved.  Later, when the business needed another cash injection, Preston again didn’t hesitate when the business needed the $30,000 his dad saved for him.

Such sacrifices were necessary because cash flow was, for a number of years, a major area of difficulty.  Since they knew they had the tools, drive, and patience to make it, Nick and Preston sunk all their money back into the company, slowly making disciplined progress.  They never wanted BPN to be a discount brand, so they had to find other creative ways to get money for periodic cash injections.  They turned to flash sales and direct phone conversations with customers, and Nick came to deeply appreciate that there are other sources of value than money.   

Nick also shares about expanding the space of BPN.  His mindset regarding space is to move into space that will force growth.  He and Preston - while a bit naive in their first commercial lease signing - leased their first HQ with an aim to grow into it by creating a revenue-earning gym in part of the space.  They quickly grew, and as they’ve continued to go all in, they’ve seen massive returns.  They outgrew spaces a number of times, and now have a 25,000 square foot footprint.

Finally, Nick offers thoughts on what has been one of the hardest and most fulfilling things about running BPN: growing the team.  Nick used to wear too many hats and see hiring as an expense.  However, he’s come to understand that hiring the right people for the right jobs isn’t an expense, but an investment - and one that comes with tremendous returns!

Thanks for tuning in and remember to leave a review and share with a friend!

Timestamps:

00:01 - Today’s episode will show what building a business looks like.

02:06 - Nick will tell stories, and he first turns to the founding of the BPN brand.

06:29 - Social media has been a positive thing, but also provided tough lessons.

12:34 - Putting yourself out there can be tough, but you have to just get started.

15:01 - Nick transitions to a story about investing money for business scaling.

21:24 - The next story demonstrates Preston’s commitment to BPN.

27:46 - BPN slowly dug out of the cash flow crisis, and avoided being a discount brand.

35:57 - Nick shares his CFO’s take on BPN’s disciplined approach to early growth.

37:06 - The next story is about the company’s expanding physical footprint.

44:32 - Nick embraces a forced-growth mindset.

47:06 - One of the hardest and most fulfilling things for him has been hiring.

Links:

Learn more about Nick Bare on his website.

Connect with Nick Bare on Instagram, LinkedIn, YouTube.

Learn more about Bare Performance Nutrition.