
3 founders show how they built $8M, $10M, & $40M businesses
My First Million
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Winning a Costco shelf takes one impulsive bet and 36 straight days on the floor — a $40M snack founder proves conventional sales playbooks are dead.
In Brief
Winning a Costco shelf takes one impulsive bet and 36 straight days on the floor — a $40M snack founder proves conventional sales playbooks are dead.
Key Ideas
Hardware collects data competitors must buy
Ship consumer hardware now to collect proprietary AI training data your competitors must buy.
Real influence through kitchen gatekeepers
Ignore celebrities. Befriend the chef who feeds them.
Prove organic fit before paid scaling
One city, zero paid ads: earn the right to scale before you spend.
Founder presence beats vendor credentials
Costco roadshows are won by founders who show up 36 days straight, not vendors.
Acquire existing business skip cold start
Acquire a failing service business to skip the cold-start problem entirely.
Why does it matter? Because the unlocks everyone's ignoring are hiding one layer behind the obvious move.
Three founders walk in with $8M, $10M, and $40M businesses. None of them got there the obvious way — one is building a cooking robot as a data collection mechanism. One got Kim Kardashian to post for free by befriending her chef for years. One skipped the build phase entirely and bought a failing billing company for under a million.
What you'll take away:
- When your go-to-market strategy and your data strategy are the same thing, every paying customer makes the moat deeper
- The person who influences the influencer is reachable — and completely ignored by every brand pitching the celebrity directly
- Banning yourself from paid ads and restricting to one city isn't a limitation; it's how you find real signal before scaling noise
- Acquiring a struggling service business skips the cold-start problem and hands you real customers, real workflows, and real revenue on day one
Pasha's cooking robot is the data collection mechanism. The product is almost incidental.
Every meal cooked on a Pasha unit is training a culinary vision model that competitors would need billions to replicate. That's the actual business — not the $1,500 robot sitting on the counter, impressive as it is.
The hardware stands on its own: 1,000 units in real homes, six-month retention that beats DoorDash and HelloFresh, $2 million in bookings last month alone. Ragav points to Tesla to explain what's actually being built. Waymo spent 500,000 hours of supervised driving and $20 billion in venture capital to crack self-driving. Tesla shipped something useful to consumers first, let customers generate the training data at scale, then built toward full autonomy. "We possibly have the world's largest culinary vision data set for cooking food." Pasha is running the same play with $8 million raised.
The implication cuts across any hardware-plus-AI category: your go-to-market strategy and your data strategy should be identical. Every paying customer deepens a moat your competitors would have to spend orders of magnitude more to match.
Kim Kardashian posted twice for free. Nick never contacted Kim Kardashian.
Two unpaid posts from one of the most-followed accounts on Instagram. The strategy took a decade, and it was aimed entirely at the wrong person — at least by conventional logic.
Nick doesn't pitch celebrities. He befriends chefs. "We're not looking for the direct connection to celebrities. That's what everybody's doing. So we've made it a point over the last decade to become friends with chefs." Chef K cooks for the Kardashians. Midday Squares had been sending her product for years before anything happened.
"Who influences the influencers — and actually influencing them is a lot easier."
The structure is replicable: map the supply chain of influence in your category. For a snack brand, it's private chefs. For a fitness brand, it's personal trainers. For an enterprise product, it might be the EA who sets the calendar. The people one layer back are genuinely underworked by brands focused on the spotlight. Build relationships there — not as a campaign, but as an actual decade-long habit.
Facebook ads were banned. Not because of budget — because they produce false positives.
Facebook ads mask whether anyone actually loves your product. That's why Midday Squares banned themselves from using them — and set a rule that their entire first million had to come from one city: Montreal.
The logic, from Nick: "If they don't really love it, we don't have it right yet before we earn the right to go to other cities." Sam put it bluntly when Nick explained it: "I think Facebook creates a lot of false positives for early business."
What replaced paid acquisition: hand-delivering every order for five months. Looking up each customer's Instagram beforehand. If your dog's name was Chuck, the founders showing up at your door would shout it. Polaroids. Costumes. The whole delivery became content. They hit a million dollars in four months.
Paid acquisition answers "can we get people to try this?" Geographic and channel constraints force the harder question: will anyone come back, tell a friend, and mean it?
The bet was impulsive. Nick didn't know he'd win. He went anyway — for 36 consecutive days.
Two and a half years of price stalemate. Third meeting, still no agreement. Then Nick looked at the Costco buyer and said: "If we do the road show and we break the road show record, the most sales ever in 14 days, will you give us $19.99?" Handshake. Done.
The confidence behind the bet: "Midday Squares Costco" was the second-most-searched term associated with the brand. Whether that translated to a record-breaking roadshow relative to whatever had come before — genuinely unknown. "There's just moments in life where you just go."
What followed was 36 days straight in-store across multiple Costco locations, 12-hour shifts, the full team on the floor. Most founders outsource roadshows to third parties. Nick calls that mistake number one. The grind also turned into research: shouting keywords at shoppers revealed that "gluten-free" and "real chocolate" were the actual buying triggers, which changed what went on the box before the US national launch.
They smashed the record.
The refrigerated section is the fastest-growing part of any grocery store. Most categories still don't have a refrigerated version.
Nick's thesis for Midday Squares started with a data observation, not a product idea. His cousin at Smucker's flagged what the shelf data showed: chocolate without palm kernel oil, refrigerated, was growing fast. So was the refrigerated pet food category. Liquid vitamins were moving from cabinet to fridge. "You keep seeing refrigeration pop everywhere."
The consumer psychology is already trained. When something moves from shelf to fridge, it signals freshness and commands a premium without explanation. The customer doesn't need convincing; they already know a fridge product is different.
If there's a category you care about where the refrigerated SKU doesn't exist yet, that gap is structural — not a coincidence waiting to be filled by someone with a bigger brand budget.
Daydream bought its way into dental billing instead of building from scratch. That shortcut is underrated.
Before Traus wrote a line of code, he acquired an existing dental billing service for under a million dollars. The seller had hit a ceiling — could grow, couldn't hire fast enough to keep up. "We got them right at the perfect time."
What Daydream inherited instantly: real customers, real workflows, a known cost structure, and zero cold-start problem. Then they started improving margins. Two and a half years later: adding $1M in ARR per month, finishing north of $10M in revenue this year.
The model scales beyond dental. If you're building software or AI to automate a service category, buying a small struggling incumbent is often cheaper and faster than building from scratch. The acquisition price is trivial against the value of having real revenue and real workflow data from day one. You skip the phase where you're guessing at what the job actually looks like from the inside.
A community and an audience are structurally different products. Optimizing for the wrong one kills the other.
If everyone in the room faced the same direction — chairs pointing at a stage — that's an audience. If the chairs point at each other, that's a community. Shaan put this to Ragav, who'd asked how to build community around Pasha. MFM is an audience. Hampton is a community. Know which you're building before you start.
Sam's version: talking about K-factor, CAC, and engagement stickiness kills the soul of a community before it forms. "Communities from the soul." The actual inputs are lore, shared language, rituals, a human face at the center. "Every cult needs shared language, rituals, and a leader."
Trying to grow a community with an audience playbook — content engines, distribution, subscriber counts — doesn't just fail. It produces something that looks like community from the outside and feels like nothing from the inside.
The moves nobody else wants to do are the ones that compound.
All three founders found leverage one layer behind the obvious move. Not the celebrity — the chef who feeds her. Not the roadshow vendor — the founder who shows up for 36 days. Not the software build — the acquisition that skips year one.
As AI makes execution cheaper and faster, these counterintuitive moves — slow, personal, weird, hard to delegate — become more defensible, not less. The moat isn't the code; it's the willingness to do the thing everyone else decided wasn't worth their time.
Topics: hardware startups, consumer goods, food tech, robotics, AI, dental tech, insurance automation, distribution, retail strategy, community building, content marketing, influencer marketing, direct mail, bootstrapping, product-market fit, Costco, refrigerated foods, SaaS, go-to-market
Frequently Asked Questions
- What is the key to winning Costco shelf space?
- Winning a Costco shelf takes one impulsive bet and 36 straight days on the floor showing founder commitment. Costco roadshows are won by founders who show up 36 days straight, not vendors. Conventional sales playbooks are dead—success requires direct founder involvement and persistent on-the-floor presence. This hands-on approach allows direct relationship-building with Costco decision-makers and demonstrates authentic dedication to the product. Personal persistence and engagement outweigh traditional vendor relationships when competing for premium retail shelf placement in this channel.
- Why should founders ship consumer hardware to build competitive advantage?
- Ship consumer hardware now to collect proprietary AI training data your competitors must buy. This strategy creates a sustainable competitive advantage by positioning your product as a data-collection vehicle. Hardware deployment generates valuable datasets competitors cannot access through other means, establishing data moats before the AI market saturates. Rather than pursuing traditional revenue models alone, early hardware shipping transforms consumer products into data assets with long-term leverage. This unconventional approach prioritizes establishing competitive positioning over immediate hardware profitability.
- How should early-stage founders approach paid advertising?
- Earn the right to scale before you spend on paid ads by focusing on one city with zero paid ads initially. This grassroots strategy emphasizes organic growth, customer validation, and word-of-mouth momentum before deploying capital. By proving strong product-market fit and demand in a concentrated geographic area, founders establish a foundation for sustainable scaling. Only after demonstrating robust organic traction should marketing budgets expand to new markets. This disciplined approach ensures marketing spend amplifies existing momentum rather than artificially inflating demand through premature paid acquisition.
- Is acquiring a failing service business an effective growth strategy?
- Acquire a failing service business to skip the cold-start problem entirely. This acquisition approach provides immediate customer relationships, revenue, and operational infrastructure rather than building from scratch. Founders can focus on turnaround and scaling instead of conducting customer acquisition from zero. The strategy trades capital for time, leveraging existing business systems and customer bases to accelerate growth. It's an unconventional but effective path that circumvents traditional bootstrapping challenges and compresses time-to-scale significantly.
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