startup

Start-up advice, from the wine industry

by alec on July 25, 2011

Sunday morning Janice and I took a quick trip to Picton, Ontario. One of Janice’s photographs has been juried into CLIC, the Eastern Ontario Photo Show, and so we made the trip to Picton to drop her entry off before the exhibition begins next week.

It happens that Picton is in the centre of Prince Edward County, Ontario’s eastern wine growing region.  So we made the rounds to some of our favourite tasting rooms – Norman Hardie, Huff Estates, and Long Dog – as well as a couple of new wineries.

Prince Edward County has seen an explosion of wineries in the last few years.  When we first visited the county in 2006, there were 21 wineries.  Five years later, there are 34 or 35.  It’s a bit of a gold rush as start-up wineries are springing up all over.  Like many start-ups, they sometimes make mistakes as well.   One winery served us a chardonnay tasting from a bottle that had been open for two days – it was clearly oxidized.  Another opened a new bottle of cabernet franc, and served a “corked” taster.  Another had just varnished the walls in the tasting room, which made it impossible to smell the wine – all you could smell was varnish.  And another had cranked the price of their new white up to $49 per bottle after winning first place in the recent Ontario Wine Awards.

I was chatting with Long Dog co-owner Steven Rapkin at the end of the day about some of what I’d seen, both yesterday and other trips.  He made the following comments:

  1. Winemaking is a retail business.  It’s true that everyone has a different perception of wine, which more than ever drives home the old maxim that “the customer is always right”.  Address the perceived flaws in your product and services immediately, because it’s always easier to retain an existing customer than to recruit a new customer.
  2. Winemaking is a word-of-mouth business.  Very few winemakers can afford the huge marketing budgets of the large wineries.  They rely on satisfied customers who tell friends in order to bring new business.  See point 1!
  3. Don’t sweat the loonies (that’s a Canadian 1$ coin).  Today it’s common to charge a nominal fee for a tasting at a winery, largely to combat the busloads of wine tourists who sometimes show up intending only to drink sample without buying.  Most wineries waive the sample fee for buyers, but some don’t.  In Rapkin’s own words “you’re not going to get rich on the loonies”.  You have to price your product fairly, and reward customers by treating them fairly.

Starting a winery sounds a lot like starting a technology business, doesn’t it?

We left with Prince Edward County with three cases of wine, including a half case of Long Dog’s wonderful 2007 “Bella” Riserva Chardonnay, which will soon be sold out.  On the way back to Ottawa, we also stopped at Fifth Town Cheese, and bought a half dozen of their excellent artisanal cheeses to enjoy with our wine.

What a way to spend a Sunday!

{ 1 comment }

Household maintenance has never been one of my strong points. I’m not the handiest guy in the world. I’m not that precise at cuts, joins, and glueing, and frankly, I’ve never really enjoyed it that much.  I do alright with electrical work – connecting wires and switches is pretty easy.  Plumbing is the job I try to avoid.  The consequences of poor plumbing are usually messy.

Tough economic times, however, have called upon us all to be more resourceful.  Over the weekend I spent a few hours tracking down and repairing leaks in our pool filter, rather than call for a repairman.  The pool was easy, though. The hot tub has become my personal plumbing “Alamo”. A top of the line Sundance Cameo, it was bought 13 years ago when we lived in Seattle.  We loved it so much that when we moved to Ottawa we brought it with us, whereupon it promptly developed a slow leak. Every week, the water level would fall an inch and a half.   The leak couldn’t be found, but no matter – the simple solution was to top up the water once a week.

A couple of winters ago, I forgot.  In the middle of January, the water level fell below the pump intake, which meant that it stopped circulating, and therefore stopped heating.  The tub froze.  A freeze is catastrophic for a hot tub – it means cracked pipes, broken pumps, and more.  Freeze damage can be repaired, however, if the leak can be found and the piping replaced. So last summer, we decided to do this.

Repairing a hot tub is a bit like building a startup.  You know what the end goal is, but it takes a lot of steps to get there, and sometimes some significant back tracking.  The process is to fill the tub, look for leaks, empty the tub, repair the leaks you’ve found, fill it again and look for more leaks.  Just like building a new product – build, release, collect feedback, evaluate, build, and release again.  Or as they say in shampoo commercials — lather, rinse, repeat.

The job didn’t get completed last year. It looked like it was almost done.  The tub held water to just about 6 or 8 inches below the top. However, critical parts were slow to arrive from Sundance in California, and we were forced to winterize the spa.  In spring, we discovered new leaks. The spa didn’t hold any water, which was a huge backtrack from the fall.  Worse, the leaks were under the spa, requiring that it be turned on edge, and the foam insulation removed in order to find the problems.

02062009093

So why go to the effort?  Part of it is simply because I’m bloody minded and this thing isn’t going to beat me.  It’s the personal symbolism – if I give up on the hot tub in these economic times, what else am I willing to give up on? And part of it’s the opportunity to become better at the job I hate the most around the house, plumbing.

In many ways, that’s the opportunity for all businesses and individuals in this economy.  Become more resourceful, learn to do more with less, be creative and succeed in spite of what’s going on around you.  Don’t give up.  And startups — if you can prosper now, you can do well in any economy.

I think I’ll try kitchen cabinets next. 

{ 2 comments }

Making Lemons into Lemonade

April 20, 2009

Carleton University Professor Tony Bailetti is out making lemons into lemonade.  In response to the current economic environment, he has dusted off a program he ran in 2002 called “Lead to Win”.  The goal is to take a crop of bright, talented folks with leadership potential and mold them into technology entrepreneurs.  Last time around, [...]

Read the full article →

Squawk Box September 30 – Credit Crunch continues, and Cloud Computing

September 30, 2008

We continued our discussion of economics today, the day after the single largest drop on North American in history.  The markets are up today, after president bush called on US lawmakers to pass the bailout package, but there is still a lot of speculation about what this will mean for companies and investors. We started [...]

Read the full article →

Two "Story of a startup" blogs

July 11, 2006

Some weeks ago, Ambient Vector CEO Sutha Kamal dropped me a line to tell me about his new project: a blog titled 90 Days in the Life of a Startup, published on the Globe and Mail’s website.  Part reality TV, part news, and all Sutha, it’s a great read.  Then yesterday, Price Canada’s Ryan McKegney let [...]

Read the full article →

Charles Hudson: Do Startups Change Consumer Behavior?

May 6, 2003

Very good.  Do Startups Change Consumer Behavior?. I had lunch with a very successful technology investor friend of mine and he made a very interesting comment. He pointed out that he no longer hears about startup companies trying to "change consumer behavior" anymore. Smart companies that he… [Charles Hudson's Weblog] It’s hugely hard to change [...]

Read the full article →
Alec on LinkedIn Alec on Twitter Alec on Facebook Calliflower on Youtube RSS Feed Contact me