The Koerner Office - Business Ideas and Deep Dives with Chris Koerner - 008: How I Grew My Cigar Subscription Box Company to $20k/Month

Episode Date: September 10, 2023

Grab a seat and get comfy because we're about to dive into the real, raw, and absolutely inspiring journey of a guy named Michael Arciola III. This is the dude who brought Southern Cigar Co. to life, right from his university apartment. It's a tale of grit, hustle, and a whole lot of belief in oneself. Let's jump right in and hear it straight from Michael.

Welcome to Startup Gems. We find undiscovered startup growth hacks, stories, and case studies from every random nook and cranny of the internet. Whether you're a seasoned entrepreneur and aspiring startup enthusiast or simply someone seeking inspiration, startup gems is your source for the stories that ignite the flames of innovation. Grab a seat and get comfy because we're about to dive into the real, raw, and absolutely inspiring journey of a guy named Michael Arceola III. This is the dude who brought Southern Cigar Company to life, right from his university apartment. It's a tale of grit, hustle, and a whole lot of belief in oneself. Let's jump right in and hear it straight from Michael. My name is Michael Arceola III, the proud founder of Southern Cigar Company, a venture that began from the humble corners of my apartment while I was a student at Florida State University. Back then, I was juggling my studies in computer science and business,

trying to find a practical application for the business theories I was learning, I wanted to prove that I could succeed in the business world, not just in academics. The idea of starting a business was always in the back of my mind. But being a full-time student with no job, I had neither the time nor the resources to start a conventional business. That's when I stumbled upon the concept of subscription boxes, a business model that required minimal startup capital in time. And it was the perfect solution.

allowing me to balance my studies and business aspirations. I knew I wanted to offer something consumable, something that people would continuously need. After months of brainstorming and consulting with my family, who were my greatest critics and supporters, I settled on a cigar subscription service. It was a product that resonated with a wide audience, including fathers, golfers, businessmen, and hobbyists.

I saw someone smoking a cigar one day and it just clicked. This was the product I had been searching for. Starting Southern Cigar Company was a journey of learning and adapting. I was fortunate to have a supportive network, including my roommate, who became an integral part of the day-to-day operations. Together, we brainstormed and came up with the name, Southern Cigar Company, a name that reflected our roots in the southern U.S. and South Florida. The logo we designed even incorporated our initials and the date we conceived the name, a personal touch that carried the essence of our friendship and collaboration. Setting up the business was a straightforward process, thanks to existing companies and

processes that facilitated newcomers like us. We invested in a quality website which became our virtual storefront and designed professional boxes to house our products. Every detail from the cigar bars adorned with our logo to the lighters, cutters, and humidifiers was carefully selected to ensure a premium experience for our customers. Launching the business, however, was a reality. check. Despite our initial optimism and the social media following we had built, we only managed to secure three customers in our first month, all of whom were family members. It was a stark reminder

that success wouldn't come easy. But giving up was not an option. We had invested too much to back down now. We needed to be realistic and strategic, learning from our mistakes and forging a path forward. We realized that our strength lay in reaching out to potential customers through search engines and media outlets, rather than relying on social media. I dedicated countless hours to building relationships with various blogs and media platforms, laying a foundation that would sustain our business in the long run. It was a slow and steady process, reaching out to hundreds of blogs and seeking honest reviews of our product. Over time, our efforts began to bear fruit. Reviews started trickling in, and we gradually built a reputation in the market. By the two-year mark, we were featured in prominent publications like

BuzzFeed, Maxim, and InStyle Magazine, a testament to our persistent efforts and the quality of our product. Today, Southern Cigar Company stands strong, with a steady growth rate of 30 to 35 percent year over year. We have managed to carve a niche for ourselves, catering to beginners and novices in the cigar world. While the landscape is becoming increasingly competitive with similar subscription services cropping up, we take pride in being one of the pioneers in the market.

Looking ahead, I see a bright future for Southern Cigar Company, despite the challenges posed by increasing competition, and my full-time role at Google, I am confident in the potential for further growth. There are avenues we have yet to explore, including the possibility of launching our own cigar brand. Throughout this journey, I have learned the invaluable lesson of believing in oneself. In the world of business, results are the true measure of success, not your background or education. I have come to appreciate the power of perseverance, the importance of being realistic, and the necessity of adapting to changing circumstances. As I reflect on my journey, a quote resonates deeply with me. There are people less qualified than you doing things you want to do,

simply because they decided to believe in themselves. It is a reminder to believe in your abilities and to pursue your dreams with determination and resilience. Starting Southern Cigar Company has been more than just a business venture. been a journey of self-discovery, learning, and growth. It has taught me to fly as I fall, to focus on solutions rather than problems, and to carve my own path rather than following others. It is a testimony to the fact that with belief, determination, and a supportive network, anything is possible. There we have it, folks. The unfiltered, down-to-earth story of Michael and his brainchild, the Southern Cigar Company. It's more than just a success story. It's a reminder to all

of us to keep believing in ourselves, to keep pushing, and to never, ever give up on our dreams. Michael's journey is proof that with a bit of grit and a lot of heart, you can make your dreams come true. So what are you waiting for? Get out there and start chasing those dreams, just like Michael did. Thanks for joining us on this journey through the world of startups and innovation. We hope you've uncovered some valuable gems to fuel your entrepreneurial spirit. don't forget to tune in next time for another inspiring story that will keep your entrepreneurial fire burning. Until then, keep exploring, keep innovating, and keep shining bright with startup gems.