Tom Piros could tell you a lot about making the perfect barbeque sauce. But the co-owner of Cranbrook, B.C.-based Smokin' Grill Gourmet Grilling Products also knows the right ingredients for a successful business.
"We got started in our basement and went from zero to 1200 stores in just over two years," says Piros, who founded the company with his partner Roger Smith. "Our niche is health-conscious gourmet products for grilling that are easy to apply," he explains. Last year, the company even managed to put its products in high-end grocery stores in Texas where barbequing is an "art."
Piros got the idea for his "mari-sauce" while working as a white-water rafting guide in B.C. He noticed that fellow guides used water-filled spray bottles to avoid charring the food that they were barbequing for guests. "That's when I came up with the idea of adding spices and flavouring to the water. The result was a great tasting and convenient product," he says.
Research delivers results
Before getting into any business venture, Piros highly recommends that entrepreneurs do the necessary homework to be sure that they have a marketable product with high potential. "The Internet has greatly simplified the matter of getting easy access to invaluable information. Our search determined that we were the only company that was offering a water-based, spray product with zero calories, carbohydrates and fat," he says. That knowledge, he says, gave Smokin' Grill the confidence that consumers might be hungry for their products.
BDC Consulting, for instance, offers research and marketing services as well as assistance in writing effective business plans.
Be creative with business development
In a highly competitive sector where food companies are coveting giant retailers, Smokin' Grill has also worked hard to find innovative ways to attract new business. "The big question for small companies is: how do you get to the front of the line?" he says. Piros believes that "tactful aggression" can get entrepreneurs past seemingly closed doors. "Sometimes it's OK to skip conventional protocol to get attention," he believes. For example, Piros secured the emails of CEOs and used a targeted direct marketing approach to sell his product idea. "I wrote letters as a CEO to another CEO. I spoke their language in my emails and got appointments right away," he says.
Solidify your brand
Piros has also developed a network of product spokespeople called the "SG Girls" who educate and create awareness about Smokin' Grill at special events. "They share product samples and answer questions," he explains. The company has also developed a website that offers clients helpful application tips, recipe ideas, testimonials and contests.
Focus on your strengths
From the get-go, Piros and his partner decided that they would focus on what they did best and outsource activities that were outside their realm of expertise. "We were interested in developing food products but not the production side of business," he explains. "The people who produce our mari-sauces have extensive knowledge of health and safety issues in the food industry. We recognized early on that the production was best left to specialists," he explains. Today, the company boasts production facilities in Texas, California, Florida and B.C. "That has enabled us to focus more on developing and improving our products as well as marketing," he stresses.
Get the right financing
When securing financing, Piros believes that a rule of thumb for entrepreneurs is to show that they're investing their personal money in the business as well. "Any bank will want the reassurance that you're totally committed to your project and willing to share the risk," he emphasizes. Smokin' Grill went to BDC to obtain financing, which was largely used to market and launch their line of products. BDC's total financing solution is specifically geared to start-ups and can include up to $150,000 in financing, flexible repayment and other key advantages.
"When we met with BDC, it was clear that they understood the hurdles that we were facing. We were not seasoned business people, so we needed that third-party opinion," says Piros. BDC also offers young companies invaluable financial planning services which can help them set realistic sales targets, do cost and profit estimates, set strategies for managing growth and track progress.
Show your commitment
Piros attributes much of his company's success to a "positive attitude.
I know it may sound a little cliché to talk about passion, but in the end, it's not a cliché at all. We were working with a shoestring budget, so we couldn't get backers just based on the money that we had. If you demonstrate that you really want your company to work, you also attract suppliers, clients and other partners who have the same passion. It's contagious," he says.
"We're a relatively new company and we're learning that you have to stay on your toes and evolve with market needs. I think our brand is now really taking shape. This is a very exciting time for us," he concludes.
