July 27, 2011
OPEN Forum Message
Watch MSNBC's Your Business
If you missed this week's show or want to catch up on past episodes, you can find the videos on OPEN Forum.
View videos
Mike Caswell spent six years perfecting the Javabot, a device that roasts micro batches of coffee beans. To create the automated system, he painstakingly tested airflow, temperature and humidity. The Javabot is now featured at the Roasting Plant Coffee—also his creation, located in Manhattan's West Village and Lower East Side.
We spoke with Caswell about his passion for coffee, and why he left his executive post at Starbucks to open his own shop.
Q: What inspired you to leave the comforts of your corporate gig and strike out solo?
A: I founded Roasting Plant Coffee based on an idea I had for building a more profitable business model and delivering a dramatically better cup of coffee. I had an amazing experience with my previous jobs at Coffee Connection in Boston, at EDS (Electronic Data Systems) and at the Starbucks headquarters in Seattle, but I wanted to do more—create something new and better. I leveraged my industrial engineering background and love of coffee to develop Roasting Plant.
Q: What did you make sure you had lined up before setting out on your own?
A: It's important to plan carefully and take the time to consider all aspects of your potential business. I spent a lot of time writing my business plan and financial models, and then made sure I had the capitalization to bring it all to life.
Q: What types of hurdles do you find yourself navigating staying in your industry but out there on your own?
A: Well, competition and ownership are what capitalism is all about. I believe that there is always room for innovation, for improving a system, a product and most importantly the customer's experience.
Q: Do you have advice for those who want to take the plunge themselves?
A: Make sure that you are ready to work harder than you imagined possible and to live frugally. Also do a reality check to be sure that you have a better approach or target an audience with unmet needs.
Q: Actually inventing something is no easy task. What was your process?
A: [Having] a clear understanding of the state of the market you are targeting is essential. Is it a growing market? Who are the players and what are their strengths and weaknesses? Most importantly, you need to determine whether your idea or concept is well-positioned to capitalize on regarding opportunity.
Q: How will your invention play out in your field over the next decade?
A: The Roasting Plant Javabot system I've invented is beginning to change customer expectations in retail coffee—it's a "blue-ocean" strategy. We can now roast green coffee beans in every store. The Javabot system can also brew any variety of coffee we carry to order by the cup and each origin bean has a totally unique flavor profile just like wine does. In the next decade, the idea of drinking stale coffee brewed from a random origin bean will be akin to eating stale mass-produced sliced white bread.
Q: What advice do you have for those inventing something that could contribute to their niche industry?
A: The biggest challenge that businesses have today is keeping up with a changing marketplace. There is no such thing as a five-year plan and businesses need to constantly adjust to meet competitive pressure and market demand. Innovating in this crazy marketplace is tough but essential, so if you've got a terrific idea that will change the market then plan carefully, get the funding you need and go for it.
Q: What have been some of the hardest lessons to learn when you launch a business?
A: No matter how much you plan, you still need to be prepared for the unexpected. For example, no one could predict the Great Recession. Market volatility, natural disasters or other dramatic events can have a dramatic impact on your business, so be conservative in your planning and consider all the risks you can.
Q: How important is your support network when going out on your own?
A: People truly are the most important aspect of taking an incredible idea or invention to market successfully. Pick an experienced team that you can truly trust, with a focus on key skills including finance, operations, marketing and sales. I've been fortunate to have a team of very experienced and capable experts working with me to bring Roasting Plant to life. I share the challenges, disappointments and achievements with my colleagues, and we all feel that we are on an amazing journey together. Carefully pick the right team for your startup because you will spend a lot of time together and they're the key to your success.
Image credit: davem_330 via flickr
Check your balance, review recent transactions and pay your bill on the go.
