We know how daunting it can be to start a new business, especially if you’re disrupting an industry or creating an entirely new one. When there is no path to follow, the biggest question is, where do I start? There is so much to do, but before you get ahead of yourself, let’s start at the beginning. To kick-start the process, and ease some of those first-time founder nerves, we’re asking successful entrepreneurs to share their stories in our new series, From Scratch. But this isn’t your typical day in the life profile. We’re getting into the nitty-gritty details—from writing a business plan (or not) to sourcing manufacturers and how much they pay themselves—we’re not holding back.

It’s not easy being the first, and it’s not easy breaking into an industry with no prior experience. But Nayana Ferguson, the first Black woman to own a tequila company in the United States, has done both. Leveraging her previous business experience, the barrier-breaking entrepreneur launched Anteel Tequila, which she co-founded with her husband Don Ferguson, in August 2018 with the goal of creating a great-tasting spirit without any additional mixers, syrups, or sugars. Fast forward to 2021, and it’s safe to say she’s accomplished that mission—and she has the accolades to prove it.

Although the Detroit-based premium tequila brand boasts a modest portfolio of three tequilas, including the world's only coconut lime blanco tequila, as well as a blanco and reposado expression, it’s attracted the attention of the spirits industry—and received several prestigious awards in the process. Last year, all three of Anteel Tequila’s expressions were awarded medals at the San Francisco Spirits Competition, with the coconut lime blanco and reposado garnering a silver medal and the blanco receiving a bronze medal, and the coconut lime blanco tequila and the reposado expressions both earned double gold medals at the SIP Awards. The brand is also a beloved hometown favorite and was also recognized by Metro Detroit Times’ readers as the Best Michigan Tequila Brand for the second year in a row.

Create & Cultivate spoke with Ferguson about her experience of building a business from the ground up without a traditional plan, how Anteel Tequila has adapted during the COVID-19 pandemic, and her best piece of financial advice for new founders.

Did you write a business plan? If so, was it helpful? If not, what did you use to guide your business instead? Why did you take that approach?  

No, initially, I did not write a business plan. I’d had other businesses in the past, so I knew what I needed to do to set up the foundation of this business and I knew that I did not necessarily need to have a business plan in the beginning. As the business has grown, we decided to write a business plan to help with our focus on growth, marketing and to be ready for future investments that would require a business plan. I would recommend a business plan for those who may have never had a business before, even if it is a simple one, as it is a great guide and helps a new business focus and organize the important factors, such as a summary of the business, what the company will be doing, marketing, and the products or services.

How did you come up with the name Anteel Tequila? What are some of the things you considered during that process? 

Originally, we started out with the name Teeq Tequila, but we noticed early on that the name did not feel totally right and the name kept getting confused with my husband’s other company Teeqlife. We already had the name Anteel in our list of names for future products, so, we decided to rename the tequila brand. The name Anteel comes from a species of Antillean hummingbird and truly, it just fit better with the brand, the logo, and our story.

What were the immediate things you had to take care of to set up the business? 

The initial items we had to take care of were our Articles of Incorporation and our FEIN in order to open a business bank account. After that, we were able to open a bank account to fund our business, which allowed us to pay for initial material orders, our website, and other items in the business name. Subsequently, we started the process of submitting our trademark and hiring the professional services we needed to make sure that we were legally set up, such as a business attorney and accountant.

What research did you do for the brand beforehand? Why would you recommend it? 

Prior to creating our tequila brand, we went to bars and restaurants to speak with bartenders and owners, to get their ideas on bottle types, their favorite type of tequila brands, and any other suggestions they may have had on creating a tequila brand. This research was beneficial because we found out several things that went into the creation of our bottle and the flavor profile for our tequila brand. For the name Anteel, we researched hummingbird names, since our logo is a hummingbird. Even though there are several names of hummingbirds out there, the Antillean name just spoke to us. Researching a name is a great way to find something meaningful to you, your brand, and the ideology of the company.

How did you find and identify the manufacturers that you work with? What makes a successful partnership and what advice can you share for fellow business owners on finding the right partners? 

I found our tequila distillery on Google. When I started researching, their name came up several times, so I emailed them with questions and they responded right away. After that initial email, we set up a Skype call that allowed us to speak with them directly and we were able to ask all the questions about how to move forward with making our tequila brand. Our distillery was very helpful in directing us on the steps to take and some things that we needed to find out about. I believe successful business partnerships are based on communication, the ability to ask questions, and mutual respect. I recommend to any business owners that they ask questions and try to find potential business partnerships that they feel comfortable with. When you feel that you can get your questions answered and the company you are working with, has your business’ best interest in mind, it is the foundation of a great partnership.

Did you self-fund the company? If so, how did you bootstrap it, and what was that process like for you? What path would you recommend to entrepreneurs today? 

Yes, we self-funded the company for the first year and a half. To make the money that we invested stretch, we made sure to only spend money on essential items for the business. As the business started to grow, we opened a round of investing for friends and family, which has helped us to continue to grow the brand and move our product into other states. I do not know that I could recommend self-funding or raising money, as it would depend on the business. There are several business types that can be self-funded initially and some that would need a significant investment amount. A business owner would need to determine what they need and research or formulate a plan for whatever is needed.

Do you pay yourself, and if so, how did you determine what to pay yourself?

The most important thing is the business, so at this time, neither my husband nor I have paid ourselves from the business. When the time comes for us to pay ourselves, we will determine all the costs needed for the business to grow and we will factor in a salary into that budget.   

How big is your team now, and what has the hiring process been like? Did you have any hiring experience prior to this venture? If not, how did you learn and what have you learned about it along the way? 

The team directly responsible for the executive decisions, the direction of the brand, and its growth is a team of two. However, being in the spirits industry, there are several business partnerships that we have to get our product into the U.S., on the shelves, and in front of our customers. Both my husband and I have previous hiring experience, so when the time comes for us to hire more people for our team, we will be prepared. 

Did you hire an accountant? Who helped you with the financial decisions and setup? What do you recommend and what advice do you have for that? 

Yes, we have an accountant who has helped us with several aspects of setting up our company’s corporation and the accounting firm continues to work with us for taxes and any questions that we have. To keep track of our financials and everyday expenses, we use Quickbooks. This program makes it easy to keep track of everything and allows our accountant to have access to our financials.

How did you promote your company? How did you get people to know who you are and create buzz? 

We have promoted our product in several ways, including social media, in-store tastings, and in-person events (pre-COVID), and business partnerships. By having a robust marketing plan and consistent visibility on social media, these things help to create the buzz, so people know who we are and what our product is.

Do you have a business coach or mentor, and if so, how has this person helped? Would you recommend one? 

No, I do not have a business mentor or coach. However, I do recommend new business owners to have a business coach or mentor, if possible, as they can answer questions, advise of different steps to take, and provide motivation.  

How has COVID-19 impacted your business operations and financials? What tactics and strategies have you put in place to pivot and ensure your business is successful through this period? 

COVID-19 has impacted our business due to the inability to market our product in person at events and in-store tastings. We have also been impacted in sales, as bars and restaurants are no longer ordering as much as they used to, due to loss in customers because of stay at home orders. In order to make sure that we were still growing through this difficult time, we started focusing more on our marketing efforts. Even though we have a consistent social media presence, we started looking more into the content that we were providing on social media and drilling down on what our customers are looking at. We also started working with our public relations company more to get media and press to work on our national visibility. 

What short-term changes will be crucial to your business strategy long-term post-COVID-19 and what plans are you making for when we get back to “normal?” 

The short-term changes that we have made regarding our marketing and social media content are definitely changes that we plan to keep in place for our long-term post-COVID plans.  Whenever we get back to “normal,” we plan to travel to the states that we are distributed in, to participate in social events, have in-store tastings, visit retail locations and create partnerships to further the visibility and growth of our product in those states.

What advice can you share for small business owners, founders, and entrepreneurs who are also reeling in response to COVID-19?

As the pandemic is an unprecedented time, business owners have to start thinking outside of the box, as there are still opportunities out there for businesses to thrive. COVID has created a new “normal” in how we interact with others and businesses need to think of ways that can adapt to these changes. If possible, talking to a business coach or mentor can help to provide motivation and support. Talking to others may certainly help owners/founders/entrepreneurs to remember their “why” of going into business and this could help to reinvigorate their business.  

What is one thing you didn’t do during the setup process, that ended up being crucial to the business and would advise others to do ASAP? 

I cannot think of anything that we did not do in the beginning that was crucial. I always advise new business owners to reach out to other business owners to find out important steps, so that they will not make any crucial mistakes.

For those who haven’t started a business (or are about to), what advice do you have? 

The advice that I have for new potential business owners would be to formulate the plan for your business, research other businesses like yours or similar, and get a business coach/mentor/consultant. There will be so much information to find out regarding a new business, but my other piece of advice is don’t dwell on trying to get everything you need before you start—that is why most new business owners do not start their businesses. Get important information, get advice, but move forward and START YOUR BUSINESS! 

What is your number one piece of financial advice for any new business owner and why?

The number one piece of financial advice I can give is to make sure that your company is set up properly and legally. I would recommend speaking to an accountant about the proper business structure, especially for taxes. This is the one piece of advice that will save money in the long run!

If you could go back to the beginning with the knowledge you have now, what advice would you give yourself and why? 

If I went back to the beginning with the knowledge I’ve gained, I would advise myself to learn a little more about the spirits industry, the business aspect of it, and how to strategically move into different states. I would also advise myself to keep moving forward, that everything would be figured out, and not to worry.

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