Episode #47. End-user Innovation From The Middle of The Supply Chain

John Willenborg’s business, Owl Vans, specializes in adventure vans designed for outdoor enthusiasts who seek to connect with nature. These vans provide essential comforts and accessories while encouraging maximum high-value outdoor time. The market for adventure vans has expanded rapidly, with Owl Vans leading in aftermarket accessories. John highlights the importance of scalability and being a generalist to succeed in entrepreneurship.

John’s approach emphasizes the importance of strategic marketing, careful expansion, strong partner relationships, and diligent financial management in building and scaling a successful business.

Resources:

Connect with Hunter Hastings on LinkedIn

Connect with John Willenborg on LinkedIn

Knowledge Capsule:

Purpose and Features of Owl Vans

Owl Vans serve as transportation to remote, beautiful locations for activities like biking, kayaking, and swimming.

They are different from traditional RVs as they encourage minimal time spent inside the van.
Vans, particularly Sprinter vans, are built with features like queen-size beds, HVAC, showers, and toilets, and are designed for off-grid adventures.

Sprinter Vans and Their Popularity:

Sprinter vans became popular in the US about 10 years ago because of their height, allowing users to stand inside.
They range in price from $150,000 to $300,000.
They are narrow, which makes them versatile and easy to park in neighborhoods.

Customer Base and Market Insights:

The vans have attracted a significant number of female customers due to their drivability and safety features.
The adventure van market has grown significantly, with an estimated value between $1 billion and $1.5 billion.
Owl Vans is the largest aftermarket accessory manufacturer for Sprinter vans globally.

Manufacturing and Business Strategy:

Owl Vans focuses on creating products for the exterior of the vans, avoiding custom builds to ensure scalability.
John emphasizes the importance of being a generalist as an entrepreneur, learning various skills to manage different aspects of the business effectively.

Niche Marketing and Expansion

Focus on a specific market segment to build a strong, loyal customer base. For example, targeting wiener dog owners directly rather than through broader pet stores.
When entering niche communities, contribute valuable content and engage genuinely rather than just promoting products. This fosters trust and credibility.
Once established in a niche, consider adjacent markets. Transitioning from a niche-focused brand requires careful planning to avoid losing the original customer base. A flexible and somewhat neutral brand name, like “Owl,” allows for broader expansion without being tied to a specific niche.

Managing Growth and Services

Adding a service component can enhance customer satisfaction and generate additional revenue. For instance, offering installation and maintenance services can complement the sale of products and improve customer experience.
Diversify business operations to balance economic fluctuations. For example, if van sales slow down, shift focus to service or off-road product

Partnerships and Supplier Management

Good partnerships are crucial, especially for startups. Collaborating with experts and suppliers can help scale operations without significant initial investment.
Regularly review and manage supplier relationships. Maintain quality control and have redundancy to mitigate risks like supplier price increases or equipment failures. Having multiple suppliers and in-house production options provides flexibility and cost control.

Financial Management

Effective cash flow management is vital. Unlike software, physical goods involve higher incremental costs with scale, so understanding these dynamics is key to managing finances.
Expect initial financial challenges and plan for them. Managing working capital effectively during the startup phase and scaling operations while keeping an eye on costs is crucial for long-term success.

Show notes: