HermannM

Happily Every After

In Business, Cooking, Finance, Grocery, Marketing on July 17, 2009 at 8:11 pm


Can you tell a little bit about yourself? and most importantly about your passion in healthy and delicious foods?

When I was growing up, my mother cooked every night; the family ate dinner together and life was a lot of fun. As I grew older, it became harder and harder to orchestrate a family meal. With both parents working, we kids had to fend for ourselves. Sometimes I would eat at a friends house and I don’t remember what my sisters did. When we stopped eating together, we started to drift apart. I think this happens to a lot of families. In America, most people can count on one hand the number of days per year when they share a meal at home with more than one other person. I think this is bad. My generation works longer and harder than did our parents, we earn more money than our parents did but we enjoy life less.

I am now an adult and I don’t believe that success and isolation are inextricably linked. My primary focus in starting a company was not so much good food but rather the impact good food could have on making us feel more connected, more alive. I love bringing people together and have always viewed food as the ultimate lubricant for social interactions. I think that if we can get more people to break bread together, we can solve a lot of problems in terms of how we relate to one another, how we feel about ourselves and our place in this world. With this as my goal, I sought to figure out a way of getting people to cook more.

What is HomeShopr? What’s the goal? How did it start?

I conducted a brief survey to understand why people don’t cook. The #1 reason was because they didn’t think they had the time to cook. The #2 reason was because they rarely had the proper ingredients in the cupboard. The #3 & #4 reasons were not knowing what to cook and not knowing how to cook, respectively. Of the four problems, I thought the second was the most important. When I started HomeShop, I was looking for a solution that would address the empty pantry problem. The first thing that came to mind was a grocery list so I examined the reasons why people don’t shop with a list.

The problems I found were two-fold. First, lists are hard to generate and second, people usually leave the lists at home. Any solution I came up with would have to address both those problems with tools to which everyday people would have immediate access. When Apple announced that they would allow third-parties to develop applications on the iPhone, I immediately saw mobile phones as the platform for delivering a digital grocery list. What I liked about the iPhone was the large screen and high quality graphics. The Treo and Palm Pilots called for small fonts that were very hard to read; but the iPhone offered design flexibility given its large face. The other thing I liked about mobile phones was that, like an American Express card, people never left home without it. I often tell a joke about how Brittany Spears doesn’t always wear her underwear but she’ll never go out without her phone. America, and the rest of the world, is very much the same way. The mobile phone is a constant and its ubiquity solved the problem of access to the grocery list. My only problem now was devising an easy way to get entries onto the list.

Can you tell me the story behind ReciClick? What were your goals in the first place? and how its going so far?

When I originally launched the company, I thought a hardware solution would be the most optimal. I purchased a laser scanner, wrote a serial driver for the device, hooked it up to a Mac-mini and built a barcode database for the 300 most commonly purchased items in my home. I positioned the scanner near a garbage can; whenever I ran out of an item, I would scan the barcode then throw the item out. It seemed like a perfect solution because we (me and my original partner Eric) had developed a solution for capturing product needs at the “point-of-depletion.” This solution was superior to the pen & paper because it was effortless. We also developed a wireless solution that would connect multiple scanners to a Mac-mini. By positioning one scanner in the kitchen, another in a bathroom, another in another bathroom and maybe one in the home office or other room where there was a garbage can, we offered significant flexibility for creating an accurate grocery list. And because the scanners were fixed in their positioning, they wouldn’t get lost.

It sounded like a great idea so we costed out the materials. We figured that we could build a stand-alone single-purpose computer that bridges to wi-fi, connect it to two wireless satellite scanners and sell it for $120. At that price point, we would suffer a slight up front loss but profitability would be achieved by charging a subscription fee for using our service. We also came up with alternative ways of monetizing the scanner information to further recover costs and meet profit and growth expectations. It seemed like a great idea until the economy turned and we came to the conclusion that people aren’t going to have an extra $120 to spend for what, to many, would seem like a “nice to have” product. When times get tough, people cut back on extras and the general feeling was that our model would not be feasible. Confident we had a killer solution, we looked for another way to monetize our product. At first we took the idea to an online grocer to see if they would give the product away in exchange our directing their grocery list information to their fulfillment centers; they said no. We went to an appliance manufacturer to see if they would incorporate our scanner in their refrigerators; they too said no. Innovation for innovation’s sake did not make sense. As 90% of the refrigeration market is controlled by 3 companies, we could not make the case that it was in anyone’s best interest to incur the cost and technological risk of our new gadget. After only nine months on the path to entrepreneurship in pursuit of Life, Liberty & Happiness, we gave up and started looking for jobs.

Later that year on Thanksgiving morning, I was sent to the store to buy ingredients for the meal my then wife was going to cook. When I got to the store I was greeted by an army of cell phone’d boyfriends and husbands taking orders from their significant others as they shopped in the aisle. One man’s wife was reading off the ingredient list from the web page of a celebrity chef while he navigated the supermarket aisles. A mental light bulb was immediately lit; instead of linking my digital grocery list to a scanner, maybe it would make sense to link it to online recipes. This was the genesis of ReciClick.

I put a few thoughts on paper and went to a pitch event to get feedback. It was there that I met our third founder, Maria, who worked at a marketing company that delivers contextual coupons alongside the receipt of a supermarket purchase. She was there to get feedback on her pitch for a real estate idea but heard my idea and sort of liked it. I thought her marketing expertise would prove useful so we kept in touch. Within a month, I invited her to join Eric and me on our journey, more like a bridge to nowhere, and Maria agreed. We clicked and started working together. After doing a little research, we found that most people shop at the grocery store based on habits. At dinner time, they look inside their cupboards to see what ingredients they have and, based on that, decide what to cook. When the ingredients run out (as they most often do), people then resort to plan B, ordering take-out. With ReciClick we can change all that. Instead of shopping first and selecting meal ideas based on the ingredients you have, we allow you to select from the web the meals you want to cook and we’ll then tell you the items for which to shop. Our ReciClick solves the empty pantry issue, thereby eliminating a key barrier to cooking. We changed our business model from purchase and subscription (razor and blade) to an advertising model. By converting to a software-based entry solution, we made the service free to the consumer thereby eliminating an adoption hurdle. We built a prototype of this functionality and are currently raising a seed-stage investment in order to launch into a public beta.

Can you share tips for new start ups around the world? How should they follow their passion? Is it easy?

I attended top schools and received the best education money could buy. Nevertheless, nothing I ever studied could have prepared me for the life of an entrepreneur. Unlike in most professions, intelligence is not a factor in determining ones entrepreneurial success. The driving factor has been a passion for solving problems and the perseverance to see things through. I am not yet successful but I strongly feel that we are on the path to success; for this I am eternally grateful. There are times when I have wanted to quit or when I think my life shouldn’t be so hard. But then I step back and ask two fundamental questions: #1 Do people need help in cooking at home? #2 Would my digital shopping list be useful to them? For as long as the answer to those two question is yes, I summon the will to keep going.

In a more general sense, entrepreneurs have to be problem-focused, not solution-focused. When I started, I identified a problem and developed a solution to that problem. When my solution didn’t work out, I gave up because I was married to a solution, one of many possible solutions but I was not singularly focused on the problem itself. It took a few weeks for me to realize that the problem still needed fixing and I probably wasted a lot of time by not sticking with it. Thank goodness someone sent me shopping on Thanksgiving morning. A goal is only worth pursuing if a great deal of effort is required to achieve it. In other words, entrepreneurship, problem solving, innovation is supposed to be hard. If it were easy, everybody would do it and there would be no great rewards at the end of the journey.

Life is not a fairy tale but if everybody does their job, dreams can indeed come true.  Having been through all this, I am certain I will never take any bit of future success for granted. I have seen very high highs, I am experiencing very low lows and I feel that I am back on the path to even higher highs than ever before. No matter what happens, I can say with definitiveness that I was not cheated out of life. I feel more alive now than perhaps ever before; if I had it all to do over, I would not change a thing.

When all is said and done, I sincerely hope history determines mine to have been a life worth living.

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