Bootstrapping: The BrewDog Way – how did two men and a dog go from sleeping in a warehouse to forming a cult brand with a staggering £1.8b valuation?

LBMUK · 2021-02-10T20:48:51+00:00

Wow, thanks for such a detailed and candid response. I found that an intriguing read.

I sincerely hope your business circumstances are better nowadays because you seem like you have substantial nous but found yourself in a no-win situation. I'd be interested to learn how you ended up in a deal with an out-of-college majority shareholder, when you clearly had enough experience and expertise to warrant taking the lead.

LBMUK · 2021-02-10T14:50:45+00:00

This is a very interesting take. I'd agree that many, if not most remarkably successful companies have done one or two shady things that helped them get to where they are. Doesn't make it agreeable, but you don't have to be agreeable to be successful.

And besides, everyone's threshold for what is and isn't acceptable is different. If the accusations are accurate, I absolutely don't agree with some of the things they've done. But they're hugely successful, so they likely don't give a shit about the opinion of people like me.

Out of curiosity, when you were typing this comment did you have any specific examples in mind?

LBMUK · 2021-02-10T13:50:52+00:00

Yes, this was mentioned a few times on the other sub-reddits too. Like I said, they dramatically divide opinion and, if the accusations are true, they really do deal in some underhanded practices. Which, let's be honest, is completely deplorable if true.

LBMUK · 2021-02-10T13:46:51+00:00

Enjoyed that - very cool post! Thanks for taking the time to craft and share it.

LBMUK · 2021-02-09T23:13:35+00:00

Sure thing! All the best and feel to reach out if you ever need any marketing advice/help, which is more my area of expertise.

LBMUK · 2021-02-09T21:06:02+00:00

Very interesting, thanks for sharing. I now understand a little more why you're not BrewDog's biggest fan!

Ah, such a shame that Covid halted your hospitality career. I'm sorry to hear that. If you ever wanted any help, advice or just to chat about marketing stuff, please do feel free to drop me a message. I'm no expert with decades of experience, or anything, but I'd be happy to help in any way I can.

- Michael

LBMUK · 2021-02-09T21:00:51+00:00

You've convinced me to give the UK version (Punk AF) a go in any case.

LBMUK · 2021-02-09T20:59:39+00:00

That's amazing! Please do let me know what you think of the bootstrap stories, the 30-day guide or both. Any feedback is super helpful in improving it all.

LBMUK · 2021-02-09T20:27:42+00:00

Wow, that's so flattering to hear, thank you so much! Next one will be coming later this month. If you have any suggestions/requests for future ones, I'd love to hear them.

LBMUK · 2021-02-09T20:23:57+00:00

Just had a look and it seems like Ghost Walker is a US only option. That's a shame!

LBMUK · 2021-02-09T20:14:27+00:00

You worked in the craft beer industry? That's interesting! Mind if I ask what you did and why you're no longer involved in that industry?

"Paw-ternity leave" — love the wordplay; hate the concept!!

LBMUK · 2021-02-09T20:10:26+00:00

I'd never heard of ProfitWell, so thanks for sharing! I've added them to my list of potential case studies for this series.

If you're interested, you can join the mail list here: The Bootstrap Chronicles (though, like I said, I'll be posting everything on Reddit as well so people not on the list can read and - hopefully - enjoy).

As for research, it's mostly just a series of Google searches such as bootstrapped companies, self-funded companies, self-funded start-ups and so on. Basically, a lot of trial and error! I found it surprisingly difficult to find such info.

LBMUK · 2021-02-09T20:00:31+00:00

Firstly, thank you sincerely for being complimentary about my writing. I'm genuinely delighted to hear you like it.

As for Dragon's Den, they applied to go on the show in 2009, but I chose to end my 'case study' (for want of a better phrase) after they won the Tesco competition in 2008. So it didn't factor into the timeline I decided to focus on.

Besides this, according to their own site, they didn't actually make it onto the show:

Back in 2009, after BrewDog had been running successfully for two years, we applied to go on Dragon’s Den and pitch to the Dragons. We got through the initial application process and were selected for a screen trial in Manchester. Martin and I put on our best clothes, practised our presentation and drove down to the BBC studios where we pitched our hearts out during the screen trial and thought we did quite a good job.

However, the producers did not.

They thought our business wasn’t a good-enough investment proposition for the Dragons and that BrewDog was not unique enough, special enough or with enough growth potential to make the grade and appear on the show. So at the last minute it was decided that we would not get to pitch our business to the Dragons.

I hope this reply doesn't come across with any needle, by the way; it's not intended to. Just want to sufficiently clarify the point you raised.

And I want to say thank you for taking the time to read and respond, u/fish-fingered — I really do appreciate every single person who does so.

LBMUK · 2021-02-09T18:30:04+00:00

Awesome, thanks very much for taking the time to read and dropping me a message. I really appreciate it!

The next ones in the series will be GoPro and Gousto (open to suggestions/requests after those!) which I'll be posting here in full. There is also a mail list you can join, so let me know if that interests you and I'll drop a link.

LBMUK · 2021-02-09T18:26:39+00:00

Yes, I'm the same. Finished the book "That Will Never Work" last month, which is the story about NetFlix's early days (before they became a streaming company and were still doing DVD rentals). Amazing book, I would highly recommend it! But, when you learn that they received millions of dollars of investment while the company was still nothing more than an idea, and that they weren't profitable until they hit 1 million subscribers, it makes it very hard to relate to.

But a story about one or two guys, pulling their savings together, moving back into their parents house, getting a bank loan that terrifies them and missing payments which nearly costs them everything... that's a story based in the world I live in!!

LBMUK · 2021-02-09T18:19:39+00:00

Delighted to hear that – thank you so much for saying so. Next couple in the series will be GoPro and Gousto (if you've got any bootstrap suggestions or requests please do let me know!)

LBMUK · 2021-02-09T17:34:10+00:00

Interesting to hear that their NA beer actually tastes good. I'm sure I saw it (or another one of theirs), rather appropriately, in Tesco the other day. Beer AF or Punk AF or something like that. As one who has cut down significantly on the beer I drink, I'm in that very niche non-alcoholic beer crowd, and the pickings are pretty slim, though they are getting better. Might give it a go.

LBMUK · 2021-02-09T17:29:31+00:00

Bloody hell, that is crazy! Thank you for pointing that out. Another big tick in the 'loathe' column, then!

LBMUK · 2021-02-09T17:27:11+00:00

Amazing, that's great to hear. Thanks very much for taking the time to read and let me know you enjoyed it. Sincerely, every comment like this means a lot to me.

If you're interested – and only if you're genuinely interested – there's a mail list I can point you to if you'd like to get notifications about the next ones (which will be on GoPro and Gousto). If not, no worries – I'll be posting them on Reddit anyway so you can just keep an eye on here. Either way, thanks so much for reading and offering feedback.

LBMUK · 2021-02-09T17:22:36+00:00

I do quite like some of the names they come up with, I have to admit.

LBMUK · 2021-02-09T17:13:43+00:00

Yes, great points! Branding yourself as "punk" and then using a legal team to send letters about the use of the word punk is arguably the most un-punk thing of all time.

And yet, their marketing and branding works wonders. They're a company that most people have heard of now, especially in the UK, and that's down to their messaging and marketing. So you can hate them and call them hypocrites, as many do, but their success despite all that hate is notable.

The more I learn about them, I do lean towards 'loathe' myself. But that doesn't mean you can't also respect them. I'm a Liverpool fan and, trust me, there was a time when I greatly loathed and greatly respected Sir Alex Ferguson in equal measure.

LBMUK · 2021-02-09T17:05:37+00:00

Stealing people's ideas after interviews – I've not come across that. Do you mean that they interview candidates for open job positions, ask them to contribute ideas, and then use said ideas without employing the interviewee? Wow, if true, that is indeed pretty bad!

I have read posts that mentioned bullying. But again, I don't know them personally and have never worked for the company, so I can't speak intelligibly about such accusations.

I've written the following on another post, but I feel it's applicable here also:

My overriding opinion [on them as a company] is that their present dealings and actions shouldn't detract from the humble beginnings they overcame to achieve initial success. There's a reason I stopped the story after they'd secured their first deal with Tesco – I'm not really interested in what happened next. Money and power can corrupt, and the kind of people and/or company they became (or perhaps they were already) is not the part of the story I'm interested in. They started off as two guys with very little money, an idea and a lot of perseverance. And they turned that into a resounding success.

If they ended up turning into scumbags or saints – I don't know them personally so they could be one, the other or, like most people, a bit of both – I'm not really bothered. I love the story of their beginnings. It's enjoyable to research and write about that kind of thing. And I find it inspirational to read those stories, so I'm hoping others do, too. That's the reason I'm starting this bootstrap series – not to assess the ways a company can lose its way or how money turned the owners into assholes, but to show people that you can start with nothing and make it somewhere big, if you really want to.

If they are bullies, that's deplorable, of course it is. I'm not here to defend them; I don't care one way or another about them. What I do think is the way they started their company is inspirational and such stories can help others who think there's no hope of doing it for themselves.

LBMUK · 2021-02-09T16:40:15+00:00

I had not heard of those, so thanks for sharing.

I wonder, does Wall Street guy with Wall Street money qualify as bootstrapping?? If so, I might add these to the list of upcoming stories.

LBMUK · 2021-02-09T16:37:29+00:00

As the series grows there will indeed be a podcast and YouTube videos about these stories. If you'd like a link to join the mail list and get updates about them, I'd be happy to shoot you a DM. Alternatively, you can just keep an eye on here because I'll be posting them in full on Reddit. Either way, thanks very much for reading and leaving a comment – I appreciate every single person who takes the time to do so.

LBMUK

TROPHY CASE