Steve Mamak of Nature Gnaws: Five Things You Need To Create A Highly Successful Startup
An Interview With Paul Moss
Do the right thing for your customers. Your customers are your truth-tellers, they will be more honest with you than anyone. Even if you have the best product on earth, there are going to be mistakes made and steps to learn as you grow. If you do the right thing for your customers, they will grow with you and be your best sounding board.
Startups have such a glamorous reputation. Companies like Facebook, Instagram, Youtube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles.
Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup?
In this series, called “Five Things You Need To Create A Highly Successful Startup” we are talking to experienced and successful founders and business leaders who can share stories from their experience about what it takes to create a highly successful startup.
I had the pleasure of interviewing Steve Mamak.
In 2016 Steve Mamak turned down a promotion in Medical Sales and quit his job to start a natural dog chew company with his brother in law, Jay Mokbel. 5 years later, they’ve forged partnerships with meat producers across South America and around the world to make tails wag in millions of households. At 34 years old, he is the Co-founder and CEO of Nature Gnaws, a family run company with over 65 employees and a 42,000 sq foot facility in Deerfield Beach, Florida.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
And thank you for having me! So, I grew up in Buffalo New York, went to college in Ohio and ended up in Florida selling medical equipment. I found that I not only loved sales but was actually pretty good at it. I really liked the freedom of being a sales representative and having to create your own success by making a plan and executing it every day, even when no one was watching. That experience gave me a hint of what an entrepreneur felt like and I knew I wanted more. In 2015, my Wife’s brother, Jay Mokbel, had left his career in the meat industry overseas and he and I started talking about starting a business. We used his experience and relationships in the global supply chain to try to sell all kinds of things here in the states. We tried everything from used car tires from Germany to olive oil from Lebanon. We failed pretty bad but learned a ton. In 2016, we came across the idea of selling natural dog chews. We both had dogs and knew that the pet space had undergone a massive shift to natural and healthier products over the years. We knew that there was a market if we could build the supply chain and develop a brand. We started with a small shipment delivered to my garage where Jay and I packaged the chews and sent them to Amazon. We used brown paper bags with logo stickers on them. We had no idea what we were doing but were determined to figure it out. It was amazing how much you could learn watching YouTube and listening to podcasts about selling online.
What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?
We sold more dog chews in the first few weeks on Amazon than we sold with used tires, olive oil and honey combined over the past year. I remember sitting on a conference call for my medical sales job just hitting refresh on my computer over and over, every time I hit it the sales went up. It was clear we were on to something. I quit my job and we traveled down to Argentina to meet with the suppliers the next week, we left with them as our new business partners and haven’t looked back since. Fast forward almost 5 years later, we have a brand that is sold on all the major ecommerce platforms including Amazon, Chewy and Petco. We are in retail stores like Costco, Target and several independent pet stores. We have traveled the globe building out the supply and expanding into new dog chew products from pork, fish, ostrich and deer. Most proudly, we have a team of over 65 employees in our Deerfield Beach, Florida headquarters. It’s been an amazing journey in such a short period of time. I still literally have to pinch myself sometimes.
Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?
I had developed a great relationship with Dr. Kelly Bowman when I was in Medical Sales. While I was mostly in his office trying to sell him on the newest medical equipment, we usually ended up talking about the stock market or real estate or some entrepreneurial book he recommended I read. Whenever we had an idea for a business, he was the first person I would talk to. Dr. Kelly always has pushed us to try it and keep going. He helped us understand areas of the business that we had no experience with like taxes, insurance and finding capital. He continues to be heavily involved and is an incredibly important part of our team. I know we wouldn’t be here today without his mentorship along the way.
What do you think makes your company stand out? Can you share a story?
We try to make sure our employees feel like they are our most important asset. As we have grown over the years, we have really tried to keep our small family-run business culture. We still celebrate babies and birthdays, and really try to make this a fun place to be. I like to think that carries over to our products and how our customers see our brand. Many of our managers and office staff have been promoted from within. For example, Delmy came to us when we only had 4 employees and were just starting out. She did not speak English but was able to ask for a job using a translation app on her phone. Unfortunately, we didn’t need any help at the time so I had to tell her “no”. Delmy kept coming back each week, asking for a job, me telling her “no”. I think it was the fourth time, I just told her to get out there and start working. I just admired her determination to keep trying and to not take “no” for an answer, I am very similar. Today, Delmy is our Production Manager, she manages over 25 employees and oversees every single dog chew package that we make. We are very lucky to have her. She also speaks English now!
How have you used your success to bring goodness to the world?
This is the best part for us. At the foundation of our idea, of our company, we chose a positive impact structure. On the business side, everything from our partnerships with suppliers to the product that we serve to dogs all over the country is something we feel really good about. Once we started selling our chews, we created the Gnaw It Forward Program and started donating to rescue shelters. We wanted dogs who were waiting for their forever home to be able to gnaw on something that would help with their dental hygiene, relieve stress, and reduce anxiety. Community service is important to us as a company, we are absolutely here to uplift our community. Whether it’s helping our employees by offering language classes, doing local beach clean-ups, or getting together to help out a family in need, the positive impact is ingrained in the company culture.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
Competitive — It is ingrained in me. I am always trying to stay ahead of our competition. I have lost lots of sleep strategizing and thinking about what’s coming next, but you have to dedicate the time, research, and energy to get ahead. When we close a big deal or reach a sales goal, it only drives me to keep pushing more.
Honesty — Whether it’s our employees, customers, or retail buyer, I always try to be honest and transparent. This is something I learned at the beginning of my sales days, do not over-promise. Even if it’s bad news, it is better for them to hear it from you directly and upfront.
Leadership — I have a natural ability to lead. I’ve recognized it at a really young age in sports and have just tried to lean into it as best I can throughout my career. At this point, I think it’s my most important trait for the company’s success. We have a great team with really talented people, my job is to keep us going in the same direction.
Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?
I don’t have a ton of regrets, sure there are things I would have done differently with hindsight but I am a strong believer everything happens for a reason and you learn from it and get better for it.
Can you tell us a story about the hard times that you faced when you first started your journey?
Cash flow problems for a start-up company are the absolute worst. Your sales are increasing, everyone is excited, you need to buy more inventory to support the sales growth, but no bank or lender wants to loan you money because you are a “risky” startup. These were the most stressful and frustrating times. Our team always found a way to make it work and today we are in a great position but in the early stages, our success almost led to our failure.
Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?
You just break the problem down and attack it step by step. You cannot get overwhelmed when times get tough. We have a great team and when anyone is burned out, the rest of us are there to inspire and push each other forward. Everyone has a voice and because of that, we can be really creative with problem-solving. As you begin to solve problems as a team, you gain confidence in each other that you can tackle the world together.
The journey of an entrepreneur is never easy, and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?
I had a high school football coach who would always teach us about “Peaks and Valleys” in sports games and in life in general. This phrase has always stuck with me. It forces you to be self-aware of where you are in the big picture of life or business. I find myself repeating the phase in my head often to make sure I stay level.
Let’s imagine that a young founder comes to you and asks your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?
I only know the bootstrapping way at this point so not sure I would be the best person for advice. I would tell them to get plenty of advice from both sides, people who have had success or failures with either path. I would also tell them they need to ultimately determine which path is best for their business, no one else can decide that for them. And once they make the decision, don’t look back, just keep pushing.
Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need To Create A Highly Successful Startup”? If you can, please share a story or an example for each.
- Sell something you really believe in: If you have any doubt about your product, figure it out before you hit the market, or find a different business. Starting a business takes all of your energy, if you don’t believe in it, your customers will know. It’s not sustainable (or fun) to sell something you don’t wholeheartedly believe in.
- Do the right thing for your customers. Your customers are your truth-tellers, they will be more honest with you than anyone. Even if you have the best product on earth, there are going to be mistakes made and steps to learn as you grow. If you do the right thing for your customers, they will grow with you and be your best sounding board.
- Find your family. It can be hard to build trust in a relationship and that stands between a lot of startups and success. You will get burned at some point and it may take time to find the support you need, but you will have so much more fun running a people-based business with… people. And when you find your ‘family’, you will go places you never dreamed of.
- Faith — You must believe you can do it, no one else will do this part for you.
- Say Goodbye to Your Comfort Zone — You will have to play every role, especially at the beginning. If you’re an introvert, you will have to learn to put yourself out there. If you’re not strong in an area you will have to figure it out. You will need to know how each area of your business works and you’re going to have to get your hands dirty, may as well enjoy it!
What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?
In a product-based business like ours, you have to start small and test everything. I have seen entrepreneurs prepare and invest a lot of money into one idea, it’s definitely a strategy and I admire that a lot, it’s just a big bet, and whichever way it goes, it’s going to go far in that direction. This past year has shown us how quickly consumer behavior can and will change. Take risks, and be nimble.
Startup founders often work extremely long hours and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?
Build great habits, make sure you schedule time for yourself. This is a work in progress still for me.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
I would have High School students study the career paths of successful people or people they admire. It won’t take long for them to realize there are many paths and it is ok to blaze your own. I think students get caught up in which school to attend or which degree to study. Do what you enjoy and the rest will figure itself out later.
We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.
Would love to talk with Josh Brown from Ritholtz Wealth Management & CNBC. He has great perspective and advice for young investors and business people. He’s definitely been an inspiration to me.
How can our readers further follow your work online?
This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!
