Meritocracy is a Myth: Indie Brands in a VC-World
What it's like being an indie founder in America's oligarchy
I wrote this essay in January for No Booze News, a now-archived site. Enjoy! -Tawny 🤘🏽
“Work hard, and you’ll do great in this world!” says everyone, everywhere, all the time. I believed it; maybe you did, too. Maybe you still believe there’s a direct correlation between hard work and success. Cofounding a non-alcoholic spirit taught me quite the opposite of this tired adage. Meritocracy is a myth—especially if you’re an indie entrepreneur.
I know how to work hard, y’all. I enjoy working hard. But my bank account doesn’t always reflect my work ethic. Today, a significant portion of my hard work goes into running a small business that I co-founded with my husband, Nick.
I Co-Created the Stiff Drink I Craved
I was a whiskey-on-the-rocks drinker back in my bartender party girl days. When I got sober, I still craved a drink with some bite, but most spirits marketed to former whiskey drinkers use shortcuts, synthetic ingredients, or loads of sugar. There was no equivalent to Kentucky bourbon aged for 10 years in American oak barrels, leaving my craving for a strong, high-quality drink unsatisfied.
While I was still on the hunt for the perfect slow-sipper, Nick got into fermentation as an early sobriety hobby. This was also around the same time that I got into herbalism. Together, we realized the bite I craved from a stiff drink could be achieved with the smooth bitterness of artisanal vinegar and organic botanicals.
Though I was familiar with the non-alc space as both a consumer and journalist—I even have a business degree—I had no idea what running a consumer packaged goods (CPG) business was really like. I longed for community in a similar way that I longed for a strong drink.
Entrepreneurship and Recovery Parallels
I treated this next entrepreneurial phase of my life like my recovery program: one day at a time with peer support. I contacted food and beverage founders I both knew and didn’t know, asking them what they’d do differently if they started their brand today. I shared Nick’s seaweed fermentation process with fellow founders in a women’s entrepreneurship group, eager to hear how their products were made, too. Their usual reply was a confused nod, followed by, “Can I see the packaging?” While generous in their willingness to chat with me, most of their advice doesn’t apply to my indie business because our budgets are quite different.
These seminars and events reminded me of that scene in The Office when aspiring businessman-turned-eternal intern Ryan (portrayed by B.J. Novak) says he could run GM but couldn’t fix a car. This brilliant satire went over my head until I started a CPG business. I was surrounded by Ryans.
Sure, we don’t have investors, so we can’t afford much of what our competitors can afford, but instead of obsessing over what we don’t have, we honed in on what makes us unique. That’s when I noticed a more empowered shift in my approach to entrepreneurship.
A Scrappy Entrepreneur Since Birth
This shift in perspective reminded me that I’m scrappy as hell. I was raised by a single mom; money was tight. My humble childhood taught me to be innovative and self-sufficient. When I was six, I wanted Kirby’s Dream Land for my Gameboy, but we didn’t have the money. So, like the unhinged Capricorn that I am, I threw a carnival in our apartment complex to raise money. I sold concessions and raffle tickets; I even performed what I called “bike tricks” to a crowd of very few people. And yes, I raised enough money, or, capital, to buy Kirby’s Dream House! My mom and I still laugh about how I pulled this off.
That little girl who performed bike tricks to pay for a video game has grown into a woman who is now nearly a decade sober and has built a career out of giving back to her community. This is the tenacity I bring to being an indie cofounder in the VC-heavy non-alc space. I may not have the venture capital, but I can sure as hell stretch a dollar and get people excited about what I’m working on.
What Growth Might Look Like
We want to take (parentheses) slow, scaling as we go, even if that means staying small for a while longer. Being small-batch is actually one of our strongest assets. We have zero interest in being mass-produced, which is why venture capitalists will likely have zero interest in working with us.
America is now the land of oligarchs, which is inherently anti-capitalist since capitalism requires competition. Venture capitalists continue to gobble up the non-alc market (every market, if I’m being honest), so the only competition now is in advertising. Which, again, rewards those who have the bigger budget rather than a true meritocracy. For our business to grow, we need more money. For the non-alc movement to grow, we need real innovation and honest competition.
Our ideal angel investor(s) would be as interested in a high-quality product as they are in generating a return on investment. They’d also appreciate our scrappy approach to entrepreneurship. They’d understand that while many non-alc brands say they’re disruptive, (parentheses) actually is. True disruption can’t happen when a product’s entire concept is based on mimicry or is essentially a fancy soda that promises it'll make you feel high without actually getting you high. If you think I'm bitter, you should try my drink 😎
Connecting with other indie founders and formulators helps me feel inspired, rather than victimized, by the financial reality of our business. Hitting up the group chat with people who are either boot-strapping like us or have found angel investors who support their slow yet steady growth reminds us why we got into this business in the first place.
I stay inspired by folks who get their hands dirty by producing their product in a commercial kitchen, bottling/labeling/dating each bottle, fulfilling orders, pitching themselves for media coverage, or, usually, all of the above.
People who, in a sense, can fix a car and run GM.
This is what they don't tell you about starting a mid-size business selling real products: mostly no one will understand you and the people who do won't invest. Here for these tales, keep 'em coming!
1000000000% here for this and hoping you find the right angel investors that not only get the unique product you and Nick have created, but appreciate that you both wear CEO down to intern hats. Trust me, I understand -- and if I had my own $$, I would invest!