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Podcast Notes: Shopify Masters - Episode: How to Turn Passion Into Profit
Podcast Overview Podcast Title: Shopify Masters Description: Shopify Masters provides authentic stories and strategies from successful entrepreneurs. Each week, the podcast engages founders and e-commerce experts sharing how they've launched, grown, and scaled their businesses.
Episode Details Episode Title: How to Turn Passion Into Profit Description: Nick Wiseman transformed a cherished hummus recipe into Little Sesame, a sustainable food brand, illustrating the journey from NYC kitchens to national recognition.
Key Themes and Takeaways
- The Journey of Nick Wiseman
- Nick started cooking at 15, influenced by his experiences in high school wrestling, which limited his eating.
- His passion for food led him to work in restaurants, gaining experience in various kitchens.
- He studied at Berkeley, where he learned about local food sourcing and the origins of ingredients.
- After graduating, he moved to New York City to pursue fine dining, enhancing his culinary skills.
- Starting Little Sesame
- Nick and his partner, Ronan, began testing their hummus concept with pop-ups, community dinners, and farmers markets.
- They emphasized the importance of small-scale testing to gather genuine feedback from customers before scaling.
- Testing and Feedback
- Nick advises new founders to take small steps and seek real feedback on their products from the community.
- The immediacy of customer reactions in food allows for quick iterations in product development.
- Hospitality and Community
- Nick highlights the importance of hospitality learned in restaurants, which translates to customer service in business.
- Building strong relationships and trust with vendors and customers is crucial for success.
- Transitioning to Consumer Packaged Goods (CPG)
- The transition from restaurants to CPG involves overcoming logistical challenges, including distribution and maintaining product quality.
- They learned to build relationships with supply chain partners to ensure product quality during distribution.
- Team Dynamics
- Nick emphasizes the importance of complementary skills in partnerships, with his hard-charging energy balanced by Ronan's calm operational focus.
- Building a positive company culture is essential, encouraging work-life balance and fun within the team.
- Advisors and Mentorship
- Nick credits mentorship from experienced founders who provided guidance and confidence during challenging times.
- Having a core group of trusted advisors is vital for navigating business challenges.
- Community Engagement and Hummus Club
- The Hummus Club serves as a platform for community engagement, allowing customers to feel involved in the brand's journey and product development.
- Nick values the reciprocal relationship between the brand and its community, fostering loyalty.
- Fundraising in a Tough Economy
- Nick discusses the challenges of securing funding in a changing economic landscape and the importance of creative capital strategies.
- He stresses building a sustainable business foundation before seeking external funding.
- Sustainable Practices and Impact
- The company is committed to sustainable agriculture and has secured a USDA grant to support regenerative farming practices.
- Nick believes in the power of ethical business practices leading to unexpected rewards and positive outcomes.
- Looking Forward
- Nick and Ronan are dedicated to continuous learning and adapting their business model as they grow.
- Regular team meetings and bonding activities are important for collaboration and idea generation.
Conclusion
- Nick Wiseman's journey illustrates the power of passion, community, and sustainable practices in building a successful brand.
- Little Sesame's growth reflects the importance of feedback, relationships, and a commitment to doing the right thing in business.
Episode End Host: Schwang Esther Shan Producers: Gogo Zoger and Megan Coyle Engineers: Miku Betlam and Matt Shorts Managing Producer: Benjamin Gottlieb Next Episode: Tune in on Tuesdays and Thursdays for new episodes.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00Hey, everyone. In case you didn't know, we launched a YouTube channel for Shopify Masters. So go ahead and subscribe for brand new video episodes. Thank you so much. I think community is thrown around loosely a lot, but I think the power of community is when you create this real opportunity for like dialogue and conversation and engagement. Hey everyone, welcome to Shopify Masters, your companion for starting and building a business. I'm your host, Schwang Esther Shan. Ever wonder how a chef's secret recipe becomes a nationwide sensation or how a pop-up transforms into a multi-million dollar brand?
0:42Well, Nick Wiseman is here to answer all those questions. Nick followed his passion for cooking from getting summer jobs to becoming a fine dining chef. He then co-founded Little Sesame, a Washington, D.C.-based brand serving up smooth hummus and sunny vibes. He's here to share how he's built close connections with local farmers while expanding into Whole Foods and other retailers. Nick, welcome to the show. Appreciate you having me. Well, it's so great to have you here. You have a very interesting journey from having this great interest in food, becoming a chef, and then you also enter into the consumer packaged goods world, also taking things online.
1:27mine. Take us through some of that journey, how the love of cooking led you to Little Sesame. So yeah, I started cooking in restaurants when I was 15 years old. It was actually driven by a terrible decision to be a wrestler in high school where we were deprived of eating. And so my fix was watching Food Network, which translated into kind of admiration for chefs and ultimately a summer job in restaurants. And so I, age of 15, I was like working in one of the better kitchens in DC, you know, on the very lowest rungs of the kitchen, just sort of peeling onions and cutting potatoes and, but learning the ropes.
2:04And I got really intrigued with sort of restaurant life and kind of chased it thereafter. So spent all my, my, my breaks away from school, certainly all summer cooking in restaurants. And that was sort of where like the journey began in restaurants and, you know, kind of like learned a lot along the way at various steps. I was lucky enough to go to school out in California at Berkeley. And, you know, after growing up in DC, you know, you see like fruit cheese growing out of, out of the, you know, on street corners in Berkeley. And, um, I think it kind of really changed my perception of, of ingredients and sourcing, um, and kind of connected to origin story of food, um, which was like a big learning for me and it shaped a lot about my career thereafter.
2:45And, um, I was lucky enough to the meat house waters and just be immersed in kind of some of the better for you food world, which is really, again, kind of connecting the dots between, you know, good farming and good food. And that really stuck with me. And after school, I went straight to New York City. And like literally the day I graduated, I was on a plane and off to New York, kind of chasing the New York fine dining world, trying to work for some of the best chefs I could and learn as much as possible. And spent a few years up in New York, again, working in some top kitchens across different stations, kind of really, again, sort of just chasing my chef dreams.
3:24And there is where I kind of like dialed in, you know, the skills and elevated, like kind of the level of cooking that I was doing and just surrounded by some really talented people there. And the level of cooking, you know, that I think happens a lot of these high-end kitchens was just, you know, I think really impressive to me, really drew me in. And it really like dialed in sort of like my intentionality around food. But I think that like world was not for me for the long term. You know, there was just like the rigidity of it, the narrowness of the people we were serving. And so kind of was always dreaming to break out and do something different and was lucky enough to meet Ronan, who is now my partner in Little Sesame, who trained me on the fish station working under Michael White's chef up in New York.
4:04And that's sort of where the Little Sesame journey begins. I love how you've really built up on this passion and grew it from the ground up. And I think that's also mirroring some of the experiences you have with Little Sesame as well. You and Ronan started testing this idea. You've had pop-ups, community dinners, farmers markets. You really tested the idea on a smaller scale before growing it bigger. So what's your advice for other founders to actually take the time to test out their idea? Yeah, I mean, I think that's actually the first piece of advice I always give, which is I think it can be so daunting, I think, when you're kind of trying to take that first step.
4:46And I think you kind of like imagine all the things that could happen and like the end goal of where you're trying to take it. And I think in most cases, it's like that first little step that's that just you learn so much and kind of illuminates the next steps from there. And so I think always it's small steps. I think, you know, anything I've learned every day is that it's like all just, you know, kind of constantly iterating and learning and just moving it forward small, small step at a time. And so I'd say that absolutely the first thing when you're starting to sort of embark on one of these projects is like, how do you just get the product out in the world and get some real genuine feedback?
5:22You know, you don't have to start by launching your, you know, fully, fully built out sort of e-commerce experience. But do people actually want the product you're selling? And, you know, it's I think getting feedback from the community is one of the most important things to do. You know, just because I think it's that's, you know, you really start to get understanding of product market fit. Are you solving a problem? And is it a product that people want? And I think those two things are pretty critical to understand early. So, you know, going out in the world and actually doing it, whether it's a pop-up or, you know, a small, you know, test in another restaurant or, you know, leveraging kind of creative economical ways to sort of test product market fit, even at a really small scale, I think you're going to learn a lot.
6:07especially in the dining setting where you can actually see someone immediately react to your food there's like no better feedback loop than that i think for sure yeah no food is that's the nice thing of food right it's it's um you know i think you you you can know if you're solving a problem pretty quickly right it's it's um there's a lot of satisfaction built in and the immediacy of the reward is is always there so yeah i think it's true you get a lot of direct feedback and i think that's the, you know, it's hard in this world of D2C world, you get into selling to retail, there's a lot of like, you're disintermediated from the people that you're serving.
6:41And so I think the power of the early days is like, you actually have this opportunity at a smaller scale to really connect with people, get honest feedback, and like actually shape a product that people want. You know, I think, of course, like as founders, we think we're offering something of value to the world, and we can kind of choreograph what people want. But a lot of time that takes molding and shaping and improving to really actually solve the problem. And so definitely like that first small step involving community and really getting honest feedback, I think is, will set you up for a lot of success.
7:14Certainly, certainly did for us, you know, and again, I think to your point is, we always have iterated and tested. I mean, we were out in the, you know, Ronan and I travel up and down the East Coast cooking, you know, getting feedback from, you know, other chefs from, you know, diners from, you know, farmers, like we really did go out there the world and seek that feedback. And when we started testing to launch into the CPG space, we, again, we were handpacking pints of hummus. We were selling in, you know, smaller regional, you know, distributors. We were just really doing everything we could to say, like, is this a product that people really want?
7:45And again, we learned a lot, right? And that was really shaped, you know, kind of where Little Sesame is now. Your journey is quite unique, even though there are certain direct-to-consumer brands like Mila or Magnolia Bakery we've chatted with before that comes from the restaurant space and then transition online. What is your advice there to enter this completely new sales channel and unlock some of the growth there? Totally. Well, I mean, I think the best thing of coming from a restaurant and any restaurant person knows is just there's a level of scrappiness of restaurant operators. We're constantly solving problems.
8:20We're constantly under-resourced. And, you know, I think that's just sort of the nature of being in a restaurant, right, is that's, you know, I think you learn a lot of life skills that translate to anything, and certainly to CPG. And so, you know, I think the through line as well is also just like a level of hospitality in any business, right? It's like we're ultimately serving our customers. And so, and I think one of the most powerful lessons I've learned in my time in restaurants is like, you know, you're creating a product for other people, right? And so it's not about you necessarily, It's really about them and how do you build that experience into the product at all levels.
8:55And it's hard to do at D2C. It's hard to do even at retail, right? But I think it's the small details and it's really like so much thought that goes into kind of building a product that kind of weaves in hospitality and the things we learned in our restaurant days. So A, I think restaurants are just like an awesome learning space to launch any business. There also isn't just tons of venture money dumped into restaurants. You kind of restaurants have to operate profitably. That's and I think that's a good lesson in today's day and age, just with the nature of funding and how expensive capital is.
9:27So, you know, that's always a good lesson to learn. A hard one, but it's a good one. So, yeah, I think that that is all of that foundationally set us up for success. And then I think the other thing was, again, kind of back to the last point, which is, you know, we in our restaurant, you know, we started making hummus because Ronan was kind of famous for making hummus at family meals in the restaurant in New York. Family meals, like when the whole staff comes together and and the cooks cook a meal and everyone kind of shares a meal before service. And it's a really special part of restaurants.
9:59It's like one of my favorite things. And Ronan was, again, like everyone always wanted Ronan to cook family meal. He was and so the hummus was kind of born out of that because, you know, we were used to getting hummus off grocery store shelves. And we're all just kind of blown away by by the kind of the freshly spun hummus he would make for family meal. So that's where the product started. And then in our restaurant, you know, the centerpiece was was our hummus. And again, we really built a reputation around hummus. You know, we built a reputation around like a local set of customers in D.C. We built a reputation among the press.
10:31And so I think that, again, enabled us to really test the product and refine the product. And we spent years just improving on the recipe and the formulation and understanding really what about what we were making was special and differentiated and unique and really, again, solved the problem at the market at scale. And so we learned a lot in our restaurant days. And so I think that's the value, again, is you're getting all this direct feedback constantly. So I don't know if everyone can replicate a restaurant environment, but I do think, again, the same idea of like, as you continue to scale, making sure that you're really creating an environment where you're getting feedback, and that you're continuing to build a product that really resonates with the audience.
11:06And, and also just like really continues to grow and adapt and learn from the audience. Because again, like that's you really are. And I think what we've benefited from is that we have a really core group of like strong loyalists who love our product. And they're our biggest champions. And like, there's no marketing dollar we could spend more powerful than they. And they're out in the world constantly kind of evangelizing us and spreading the word about Little Sesame and their communities. And so, you know, I think not only is it useful in terms of improving product, but those people become your champions.
11:35And you certainly need them in your corner if you want to try to, you know, scale a business. I love hearing about the evolution of the hummus from like family meals to the restaurant centerpiece, and then now reaching different families through retailers or direct-to-consumer. Was it hard to still figure out that logistics piece? Because I think for you and Ronan, nailing down the taste is no problem. But how did you figure out keeping the products cold, making sure you've made enough to meet demand, and getting the goods to someone's home in the state that you want it to be in? Yeah, I mean, it's all been a learning curve, right?
12:15We're used to like a restaurant where you control the end product, you know, and you see it every time. You know, here we send out our product in the world and it floats away. It's, you know, pallets floating in trucks across the country every day. You know, I think it's, again, that same sort of spirit of hospitality and relationship building is that foundational to everything is just like strong relationships. And, you know, we really try to build that spirit among all of our vendors and all of our partners. And, you know, again, strong relationships and trust and transparency, like that's always going to lead to the best results.
12:45And we've been lucky. We added a guy on our team, Chris Muller. He came from Minor Figures Oat Milk. And he, you know, he kind of joined our sales team early days, right as we were making the transition into CPG. And he just, I think, has really built into the DNA of Little Sesame, this idea of leading with relationships. and, you know, the relationships, the way we act is kind of going to be reciprocated by our partners. And I think it's just been such an invaluable lesson for us, you know, in terms of, again, kind of we don't have that level of control once the product leaves our factory, but we've built strong relationships and a level of trust with our partners that take it sort of that last mile.
13:22And there's, you know, a level of confidence that when it lands on the grocery store shelf, it's, you know, it's as good a product as we could possibly make. So I think relationships always are going to be a driver of success. And again, I think a lot of it was learning as well, like kind of knowing our knowledge gaps and what we didn't know. You know, we were restaurant people. We came with ability to problem solve and be scrappy, but we didn't know how the CPG world worked. And so surrounding ourselves with great mentors and advisors, people that knew was key as well. And so I think it's the humility to know kind of what you don't know was important.
13:55I remind myself of that often, even as we've gotten a little further We're in it, like constantly surrounding ourselves with people that have been through it, you know, the next phase, always one step ahead of us and can help us make better decisions. So I'd say building relationships and then making sure you're surrounded by the smart people that have been through it before that can kind of limit the number of bad decisions you make. And bad decisions are inevitable. And I think that's the last thing we really kind of build into the culture of Little Sesame, which is, you know, look, we all make mistakes.
14:24That's inevitable. We're all humans. Are we learning from them? You know, and are we sharing those learnings with the rest of the team? And are we getting better every day? And I think, you know, so long as we're doing that, you know, the company's getting better, the product's getting better, you know, and we'll all be better off. Having the right partnerships is so crucial. And I think the genesis of Little Sesame all ties back to the partnership between you and Ronan. You worked in so many different restaurants and have worked with so many different chefs. What is it about Ronan himself that makes you think you guys can actually be in business together?
15:01Yeah, I mean, yin yang in terms of our energy and spirit. There was a funny video we made in the early days. And Ronan described me as like, I think it was like neurotic and type A. And we had to like edit it out. I think the pieces of it made it through to the video. But it was kind of like our first about us video. But it's true. You know, I think like we, my energy is definitely more like a bit hard charging and can be intense in moments. And, you know, I think I kind of where I sit now in Little Sesame is kind of like setting the vision and kind of like pulling the team behind me. And Ronan is, you know, Ronan manages all the operations.
15:37And because we've had really pretty incredible growth the past couple of years, it's just constant problem solving. and it requires, I think, a level of like calm and ability to just like, you know, really navigate pretty intense storms in moments. And I think they're constantly coming. And so I think my like kind of hard charging energy keeps the boat moving forward and Ronan kind of keeps us from capsizing because it's just sort of like that necessary balance that we bring each other. So I think been lucky to have him, you know, it is always kind of, you know, the Wild West in terms of like, how do you pick a partner and how can you choreograph all the things that are to happen?
16:17You know, again, I think at its core as well is just communication and trust and the ability that both people, you know, or the number of however many founders sort of are starting to build. I mean, there is like a true set of ownership over what you're responsible to do and that there is the initiative you take to kind of get it done. And I think when those things happen and you feel a level of like deep trust that the partnership is everyone's doing what they can to make their piece of the business successful and that you're there for each other and have each other's back when it's not and help solve problems when you make mistakes.
16:53I think like, you know, so that's the first piece is kind of like that ownership. And the second piece is like, Hey, I really trust this person has my back. And if things don't go right, that we'll be there together to solve it. I think it's been kind of instrumental for us. And I think this would be instrumental in any partnership. So, So, you know, I think like our personality fit was kind of the underlying thing that made it work. And I think the through line as well is just like having fun and maintaining friendship. I mean, Ronan and I met in New York. We had the same spirit. He was a way better line cook than me.
17:24But we were always just friends, you know. And I think, you know, we didn't contemplate necessarily going into business together. But, you know, I think we've done a really good job of like maintaining a core friendship as well. which I think just makes it really rewarding right so every time we make progress or there's a milestone or celebration I think it like feels even better just like having that core relationship and we've grown a lot you know we now if both of us have had kids the and we both had you know gotten married and so it's like we've grown a lot and we've lived a lot of life together and so I think it's you know not only like celebrating the work moments but also being there for each other and kind of like those personal moments and you know I think that's uh you know I think we have I'm very lucky.
18:06We have a great partnership, and I know it's hard to build, and I'm lucky to have run in. Yeah, celebrating together is very important. Obviously, growing together throughout the years. I'm very interested in building a team for a CPG company might look different than building a team in a restaurant, but has there been similar themes or qualities you look for when you're hiring people, whether it's for a restaurant or any type of business? Yeah, I mean, I think we always lead with like culture fit, you know, as this person, you know, going to fit into the large organization, you know, I think we have, you know, really pride ourselves in building like a really healthy culture balance between life and work, you know, we both like to have fun outside of work and try to make sure that that's, you know, represented across the entire team.
18:55and there's space to do that. And it's not only space, but it's celebrated to do that, right? That like, you know, work is important and we all, we hold ourselves a high standard and we want to build a, we want to build a big company, but also at the same time, we like want to have fun and be, you know, part of our family and live other lives as well. And so I think we always kind of lead by example, by doing that. And I think make sure that not only others are like have the space to do it, but actually like it's kind of celebrated when they do. And so I think we always have led with that And we've made sure that that's sort of communicated at all levels.
19:27And I think a lot of people say that, but it's not always the case, right? And so I think like really, I think that's the biggest thing of culture building is like, it's easy to put things on paper, but it's much harder to enact them and kind of like live to the values when things are tense or when there's a lot to do or, you know, when you're in a tough moment. And so I think, you know, we've really tried to stay true to those values as we've grown. And so I think in terms of finding talent, I think, again, knowing where the knowledge gaps are, right? So it's like, what don't we know? And where can we really find people that can help solve problems inside the organization?
20:02And I think that's been really successful. There's not like a playbook of like, okay, first, you're going to hire a sales director, then you're going to hire a marketing director, you know, create that, that, that push pull, you know, it just doesn't work like that. And at least it didn't for us. And so I think for us, it was like, what are our strengths, you know, starting with Ronan and myself, some of the foundational team, we had. And then like, where are there knowledge gaps or skill gaps or talent gaps? And then how do we kind of build roles that really solve the problems that we're having?
20:29And I think you can't until you're in it and you really can feel where you're at, you kind of learn how to solve those problems. And a lot of times, again, people are, you know, there's nothing better than a, you know, a strong team member to help kind of build or solve a problem. And so again, I think that's just been a really instrumental for us. It's like, we're not trying to follow a playbook or look at how other companies' org charts look. It's like, what are our unique set of challenges and where are our knowledge gaps and how do we kind of look at talent as a way to solve those problems?
20:56And I think the other thing is always kind of looking at the existing team. And we're constantly rewriting job descriptions and constantly looking at like, what are existing roles look like and how are they shifting too? Because you wear a lot of hats in the early days. And I think that you have to start to shed hats to be really good at what you're doing. And so I think we're constantly engaging with our team and saying, okay, like, how do we take this or restructure this role or pull this off your plate? And how do we like really start to narrow and deepen the individual roles as we start adding people?
21:26And so not only is like the new person successful, but you're more successful. And so I think a lot of hiring is also making sure that the existing team continues to evolve as well. So that there's really like, again, a sense that when everyone kind of clicks together, there's just sort of like a natural flow to how the team is structured. Looking for talent that complements the team. And I feel like you guys have also done this with getting advice or advisors, mentors to basically also help you navigate through some of the new chapters within CPG or e-commerce. Talk to us a little bit about that, like finding the right mentorship as you're trying to skill and grow.
22:07I think the CPG space may be unique. I found it really rewarding. Like it does seem like there's just a lot of people that want to help. It's a hard business. So I think people who have been through it, founders at all levels, but particularly founders, like I think there's a rewarding piece in kind of sharing the learnings and kind of bringing up the next generation of founders. And so, you know, I've been lucky to have a lot, be surrounded by just some awesome people. I mean, in early days, Nick Jemay from Sweetgreen, he was just such an awesome, he was always a believer in us and just, you know, gave us confidence to kind of just like build in the early days and take the leap ultimately into CPG.
22:42I remember a call with him over COVID where I was like, you know, I don't see the future of restaurants right now. Like we're kind of, you know, we built something that we thought really could work and now sort of everything is in question. You know, he's like, you know, people are rewarded for taking the biggest leaps, the most difficult moments and, you know, take this leap and see where it takes you. And so I credit a lot of it to Nick and he's just been an awesome mentor. and friend of mine over the time. And so I think it's, you know, really having trust in some core people. You know, I think it's easy to just also just get too many opinions and too much advice.
23:14So I think it's just like really starting to like, you know, talking to a lot of people, but making sure that like your core set of people you're getting advice from is dialed in and is willing to challenge you. And that there's a level of trust on both sides to really have that like real dialogue. And it's not just sort of validating what you think, but helping you think about things in a new way. And the challenges change. So, you know, it requires sort of constantly bringing in new people. As the business gets bigger, you know, it makes sense to have founders who have taken it to the next level or, you know, a couple steps ahead of us.
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23:44So it's always maintaining just that sort of spirit of curiosity and wanting to learn and wanting to get better. I think if you put that energy out in the world, it's going to be reciprocated and you'll find people that want to help. But I also think it's like you got to have those core people the whole way that have your back. Mm-hmm. Yeah. Having that guidance, especially in pivotal points or monumental moments, that leads to a lot of growth. And I think the growth for A Little Sesame also really goes back to the community. I know that there's also the start of the Hummus Club. What's your advice for building a really great community that people want to be a part of, having the ability to share your story and have it resonate with people?
24:27Totally. I mean, again, I think it goes back to like, you know, it's not unilateral. communities requires that there's like reciprocation and engagement and that the community feels ownership too. And so I think like starting really small and you're getting feedback from a few people and then doing a pop-up where there's larger group of people that are engaged and you're getting like that process where people actually feel like, Hey, my opinion matters and I have a voice and, you know, I can help shape this thing. I think that, that feeling, I think gives people a lot of ownership and is actually like foundational to building community.
24:58And so we've tried to do that at every step, right? Like I said, we tested, then we did pop-ups. We hosted a lot of dinners along the way, actually convening people in real time, you know, offline and hosting and talking to people and engaging them and, you know, truly like building community. And that's sort of the spirit and through line to the Hummus Club, which was like, okay, now we're in CBG and there's a lot less opportunity for us to engage. But a Hummus Club's an opportunity, right? It is a way to actually directly engage a group of people who want to opt in and participate. And I recently emailed some of our top subscribers in the Hummus Club and just asked for some candid feedback and thank them.
25:39And I think community is thrown around loosely a lot. But I think the power of community is when you create this real opportunity for like dialogue and conversation and engagement. And again, building this core group of people that believe in the brand and those people, again, there's no marketing dollar more powerful than having a group of people that really believe in what you're doing and have your back and help spread the word about the brand. So I can't undervalue like the power of community or overstate like how much it's had an impact on Little Sesame. And it's really hard for a big brand to go backwards and start to build community.
26:12And so I think the advantage of, there's not many advantages of a little brand out there in this big hard world that we live in. But I think one is that if you do build community and this group of like loyalists from the early days is that they can really be like a catalyst for a lot of growth. And you're truly engaging and communicating with your community. Another sign of like significant growth and scaling is the fact that you were successful in closing fundraising with the latest round being$3 million. I think that's also really tough in this current economy for consumer packaged goods, for direct-to-consumers.
26:51So I guess, what's your advice for people who are going through that process of fundraising and thinking about their finances? Yeah, fundraising is tough. I mentioned it earlier. You know, I think it's, you know, capital has gotten just much more expensive. And so like, as a founder, you kind of get in because, you know, you believe in the product, there's a passion for what you're building, but there's also like, hey, there might be this upside down the road and there's this economic opportunity that I'm working towards. And the problem is, is like, when capital gets more expensive, that that opportunity gets smaller and smaller.
27:23So I think there is like, you know, I think that needs to be reconciled. And I don't have advice on how to do it other than I think thinking creatively about how to about build your capital stack. It's not just like, you know, 10 years ago where it was just like equity dollars floating everywhere. And any pre-seed idea that had a little bit of product market fit was going to get funded. I think like it seems to me that the institutional funding is coming later in businesses. Again, there's a hidden opportunity there is that like, I don't I think the injection of capital only should come when it's really necessary.
27:57Because the problem I think is, is that like, you know, the funds want to see growth. But I think you want to build a really healthy foundation. And that's a healthy foundation of like the business and the economics of the business. That's also a healthy foundation of customers that believe in you going back to this community idea. you know, I think you want to understand like what works and, you know, what works from a marketing perspective, you know, in our world of like, is it merchandising? Is it demoing? Is it shopper tactics? What's the blueprint for success? And then how do you take the money and then scale out those ideas?
28:25So I don't think it's bad because I think that the funding has gotten later. I think it is harder because again, like, you know, how do you just, again, those, it's harder to just sort of create that initial burst of energy and get the project off the ground without some capital. So I don't want to like underestimate how challenging it can be. But I do say that like, I think there is some, some silver lining to the fact that funding is coming later in terms of like, I think it will build healthier businesses overall. And then I think again, back to the creative, kind of like building a creative financial stack is like, it's not just equity.
28:58I think, you know, especially for some of these better for you brands, there's really cool models out there that are, you know, want to get behind and support them. So banks like Walden Mutual or Steward that, you know, really are funding projects that are building sustainable supply chains. You know, those, those are unique tools that, you know, founders like me can, can leverage that are different or stand outside of like the traditional funding world. And then, you know, we were lucky enough to win a two and a half million dollar USDA grant to support our work. And, you know, I think there is, you know, again, depending on sort of the nature of the project, I think there are, there are creative ways to, to, to fund beyond just, just equity.
29:34And so I think it's sort of looking creatively at like the whole stack of capital and, and how you build it. And, and I think that's gonna be an important lesson and something that's going to help like, be be necessary way to look at the business again, if you want to preserve as much of that, like upside opportunity of the business. Yeah, talk to us a little bit more about the grant, because I think it also helps with the way that you run your business. And it's allowing you to be creative with your capital stack as well. Sometimes you make decisions and you do things because it's the right thing to do.
30:03And then it's really, it's just so rewarding when like those things pay dividends as well from a business lens. You know, it was very important for me, again, like my early days in Berkeley and learning about the connection of food and agriculture and climate, you know, sustainable supply chains and working with regenerative growers for us was like, you know, something that was really important for us to do. And that like, we felt like every container of hummus we sold was an investment into good agriculture. You know, we did that because we thought it was the right thing to do. and it was a value that we wanted to bring to the business.
30:33You know, I couldn't have choreographed, you know, three, four years later that it would have been aligned with the USDA objectives for their organic market development and we would be able to get a grant to continue doing it. So I think sometimes it's, you know, I think the takeaway from that for me is like, you know, doing the right thing often can lead to a lot of positive things and outcomes that you don't necessarily anticipate. So lean into doing the right thing. I think that's, it's sometimes a hard decision to make. But values often pay dividends in other ways. And I think it's always worth following those value systems if they're important to you.
31:08So I would say that was sort of the lesson there for me. The grant was, again, the Organic Market Development Grant. So the USDA, the Department of Agriculture, allocated money to helping build the organic market in the U.S. And a stated priority was more legumes. Beans are build healthy soil. And the U.S. over the past six years has lost a lot of topsoil in the way we farm. And so, again, because we had this group of farmers that was farming a certain way, led by Casey Bailey, a farmer we worked with from the very first day we started Little Sesame, you know, we proved that, hey, as we're scaling, we're bringing more and more acres to regenerative agriculture.
31:46And thus, if you guys give us this money that we can prove that, you know, we can have 10 ,000 acres under regenerative management by the end, you know, in three years. and I think that was a compelling story for them to take a leap on us and it's you know again I've shouted them out a bunch of times it's really to me it like a seismic shift in how the USDA does things right you know it's come from world of like a lot of commodities the big agriculture subsidizing a lot of monoculture farming and to now see that there's like a real investment into this new wave of farming that is thinking about like soil health and really investing in sort of smaller independent farmers is to me the future.
32:23And so it's really exciting to see that there's, you know, not only are like brands starting to help make the change, and you're seeing retailers start to make the change, but you're also seeing the government get behind that and invest in that change. Yeah. And how cool is it to think about, you know, you came from producing maybe 50 pounds, and now you're producing at a capacity of like 50 ,000 pounds. And with that, you're also creating this positive impact because you had those early relationships with farmers and regenerative farms? It's the most rewarding thing for me, for sure. You know, we went from buying, again, 50 pounds at a time to 50 ,000 pound truckloads at a time.
33:01And we're taking the whole team out next week. We're all going to Montana and we're going to go see the farm. We're going to spend some time out there. And, you know, I think just for us, you know, connecting the dots for our team, for for customers, you know, just it's, it's just so powerful that, you know, I think it's, you know, we again, get this opportunity every day to invest our like dollars that we spend on food into brands that do the things the right way and serve us for generations. And I think there's just a really hidden power there. And hopefully the more we talk about it and the more, you know, there's tons of other brands that are leading the charge as well.
33:35And, and kind of like shepherding this new way of doing things forward. And so again, I think it's consumers have a lot of power here. And, you know, I think it's on brands to kind of continue to tell that story in a compelling way and, and work hard to make it affordable. And so that like this kind of can become the way of doing business and not just an exception to the way of doing business. Well, Little Sesame has definitely grown so much and it seems like it's ever evolving. And with your branding, packaging, marketing, flavors, how do you bring the team together to make sure you check in once a month, brainstorm together and just really plan for the future?
34:14We're all virtual. You know, our factories in Maryland, we're on based. And we have a small group of us that are here. But yeah, I think we just like tried to usher in a spirit of like, you know, every idea is entertained and there's no idea that's not worth sharing. That's just sort of like the spirit of how we approach our meetings and how we approach kind of working across the company. I think it is super powerful to do what we're doing next week, which is actually like get out of our day to day and shut our laptops and actually just like be together. And there's just like such a pollination of just like ideas and a trust level of like trust building that happens when you're kind of not centering work, but just sort of centering the relationships that I think the impact after is so powerful.
34:59So I think there's just an openness to no ideas. Like we're all learning as we go. And I think that's Ronan and I try to communicate that as well. It's not like, you know, just because of the nature of our roles, we know any more than anyone. I think we're constantly learning. And so I think that's just how we, you know, try to sort of engender that spirit in the rest of the team. That it's just sort of, again, that kind of spirit of curiosity and learning from each other and from outsiders and from customers, et cetera. And I think that's, you know, that, again, will really inform, you know, kind of the future of how we're building and, you know, help us, you know, bring in new ideas and shape products and, you know, drive marketing.
35:40And, you know, I think it's just there's so much to gain and learn there. So it's a never ending journey. Never ending journey and so much more space and so many more ways to grow. So we look forward to all the ways that Little Sesame will evolve and grow. Thank you so much for being here, Nick. Yeah, I really appreciate you having me. That's Nick Wiseman, the CEO and co-founder of Little Sesame. Our show is produced by Gogo Zoger and Megan Coyle. Engineers are Miku Betlam and Matt Shorts. Benjamin Gottlieb is our managing producer, and I'm your host, Schwang Esershan. Thank you for tuning in to another episode of Shopify Masters.
36:19Until next time, keep innovating and come back on Tuesdays and Thursdays to catch brand new episodes.
From the publisher
From NYC kitchens to a national brand, Nick Wiseman turned a beloved hummus recipe into Little Sesame, pioneering sustainable food entrepreneurship.
For more on Little Sesame and show notes click here.




