The Story of Mid-Day Squares | Nick Saltarelli (Cofounder, Mid-Day Squares)

TL;DR

Mid-Day Squares grew from hand-making functional chocolate in a condo to $26 million in revenue and cash-flow break-even over five years. Nick Saltarelli, his wife Leslie, and her brother Jake launched the company in 2018, documented the journey on social media, and pursued sales to prove demand before funding manufacturing at scale. Read on for their approach to product positioning, audience-building, factory ownership, and surviving an 85% revenue drop during COVID-19.

Transcript

we were getting rejected left right and center and this is where we came up with the idea of Christ out what we believe we can do at scale of midday squares build a road map of how we get to that scale and start Manufacturing in our condo by hand and that's what we did we went on Instagram we started shouting to the world that we were about to star... Read More

Key Insights

• ◼️ Midday Squares grew to $26 million in revenue by utilizing social media and building a strong brand presence.
• 😀 The founders faced challenges in finding a contract manufacturer and decided to build their own manufacturing plant.
• ✋ The company achieved product-market fit by focusing on their local market and maintaining a high level of customer satisfaction.
• 🔉 Midday Squares overcame logistical challenges during COVID-19 by leveraging media relationships and seeking help from government authorities.
• 🤝 They emphasize the importance of grit and perseverance in dealing with the challenges of entrepreneurship.
• 👨‍💼 Building an audience and fan base can provide long-term dividends for a business.
• 👨‍💼 Seeking support from a therapist or counselor can help entrepreneurs navigate the emotional challenges of building a business.

Questions & Answers

Q: How did Nick Saltarelli and the other founders build Mid-Day Squares?

Nick Saltarelli, his wife Leslie, and her brother Jake started Mid-Day Squares from a condo in 2018, making the bars by hand. They pursued sales to prove that customers cared, intending to use that demand to support funding for a manufacturing plant. Over five years, the business reached $26 million in revenue and became cash-flow break-even.

Q: What is Mid-Day Squares?

Mid-Day Squares is described as a healthy functional chocolate bar that combines qualities of a chocolate bar and a protein bar. It is vegan, gluten-free, soy-free, non-GMO, and made without preservatives.

Q: How did Mid-Day Squares use social media to build its brand?

The founders announced the chocolate company on Instagram while they were still manufacturing by hand in their condo. They built the company publicly by showing behind-the-scenes work and inviting people to follow their effort to grow from condo production to large-scale manufacturing.

Q: Why did Mid-Day Squares start manufacturing chocolate in a condo?

The founders were being rejected and believed nobody would fund them before they demonstrated demand. They therefore mapped out how to reach scale, began manufacturing by hand in their condo, and focused on generating sales that could help justify investment in a factory.

Q: Why did Mid-Day Squares build its own factory?

The company needed a path from hand production in a condo to manufacturing at massive scale. Its founders planned to use proven sales demand to persuade investors to fund the roadmap for a manufacturing plant and support the business model.

Q: How large is the chocolate industry according to Nick Saltarelli?

Nick Saltarelli describes chocolate as a $142 billion industry largely controlled by three or four companies for roughly 100 years. He says that concentration makes the market highly competitive and politically difficult for a new company to enter.

Q: What nutritional qualities does Mid-Day Squares emphasize?

Nick Saltarelli says each snack contains under 160 calories and under 10 grams of sugar. He also says the company uses no artificial sugar, uses coconut sugar instead of regular sugar, and makes the product without dairy.

Q: What major challenges did Mid-Day Squares face while growing?

The company encountered regulatory and competitive pressure, including a cease-and-desist from Hershey’s and restrictions on describing its squares as “functional chocolate.” During COVID-19, it also survived an 85% decline in revenue while dealing with the demands of scaling manufacturing and raising a bridge round.

Summary & Key Takeaways

• Midday Squares went from a condo-based start-up to a $26 million revenue company in just five years.

• The founders used social media and behind-the-scenes content to engage with customers and create a buzz around their product.

• They faced challenges in finding a contract manufacturer and decided to build their own manufacturing plant.

• The company focused on their local market and maintained a high level of product quality and customer satisfaction.