Page 91 - Entrepreneur-November 2018
P. 91

Problem Solvers





       “I Hired the


       Wrong People!”


       JUST cofounder Josh Tetrick wanted to build a
       disruptive company, so he hired disruptive employees.
       Then he got disrupted himself.
       by JASON FEIFER



            osh Tetrick had never   by industry standards. And
            run a food company,   Tetrick had big ambitions. In
            and he considered that   creating animal-free versions
            an asset. His goal was   of staples like eggs, mayon-
            to disrupt the food   naise, cookie dough, and more,
            industry, so he wasn’t   he wanted people to rethink
            interested in old ways   how food is made. So he set up
       J of doing things. “If you   shop in a Bay Area garage and
       had told me when I started the   began hiring people he thought
       company that one of the keys   could make a huge impact—
       to success would be hiring peo-  experts in data science and
       ple who are experts at going   high-tech platforms.
       out to the Midwest to visit dif-  Then came the disastrous
       ferent warehousing partners,   launch. As his products lost
       I would have been like, ‘Shut   money, he began examining
       the fuck up,’ ” he says. Instead,   the causes. There were many.
       as he built his startup JUST   His company had a terrible
       (originally called Hampton   manufacturing contract and
       Creek), he hired outsiders like   had picked the wrong manu-
       himself. It seemed to work.   facturers and warehouse part-
       His first product, an egg-free   ners. Its shipping process was
       mayonnaise, debuted in 2014   a mess, and so was its supply
       at Northern California Whole   chain. “Pretty much everything
       Foods stores and shortly there-  we should have been doing in   all he wanted to do was talk   there’s a whole bunch of stuff
       after was carried by thousands   operations we weren’t doing,”   about warehousing.” Then   I don’t know anything about,”
       of Safeways and Walmarts.   he says.                 Tetrick forced himself to step   he says. But more than that, he
       Demand was high.            When CEOs reflect back,   back from hiring. Rather than   needed to appreciate the limits
         Then lids started pop-   they often regret that they   be in control of every decision,   of change. “Everything is not a
       ping off. Labels fell off, too.   didn’t move faster to fire peo-  as he once was, he left his new   revolution,” he says now. Some
       The packaging was defective,   ple who weren’t right for the   industry experts to build their   things can be reinvented, but
       and the product went from a   company. Waiting even an   own team—filtering for what   others are better off embraced.
       success to a money-loser. As   extra month can drag down an   they thought was important,   Today, Tetrick says, JUST
       Tetrick scrambled, he came to   organization. Tetrick under-  rather than what he did.  is a growing 120-person com-
       a hard realization: An entre-  stood this. He’d hired smart   Operations team mem-  pany and is on its way to going
       preneur can be too disruptive   people, but now he realized   bers either caught on or were   public. That’ll be the next
       for his own good.          they were the wrong smart   replaced. Contracts were   phase of its revolution—all
         At the beginning, Tetrick   people. So he laid off a few and   renegotiated. Supply chains   thanks to some very nonrevo-
       fit a certain Silicon Valley   replaced them with industry   were fixed. Losses shrank and   lutionary employees.   PHOTOGR APH COURTESY OF JUST INC.
       archetype—the brash founder   vets. “We hired a guy who gave   disappeared.
       who celebrates inexperience.   me the most boring presenta-  As he watched this hap-  Hear Tetrick on our podcast
       There’s a logic to it. If you   tion I’ve had in the history of   pen, Tetrick reconsidered his   Problem Solvers, available
       want to rock an industry with   all interviews,” Tetrick says.   leadership. “I need to be intel-  on iTunes or wherever you
       fresh ideas, you can’t be bound   “But that was great, because   ligent enough to know that   find podcasts.


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