The path of an entrepreneur is rarely a straight line. It’s often a winding road paved with bold ideas, unexpected setbacks, and moments of sheer tenacity. Oscar, the Swedish entrepreneur behind Kaffekassan, shared his compelling journey on the «Beauty of Business» podcast, offering a candid look at the trials and triumphs of building a business that aims to revolutionize fundraising for schools, sports teams, and organizations. His story is a potent blend of resilience, innovative thinking, and hard-won wisdom.
From Saffron Dreams to Coffee Realities: The Early Grind
Every venture starts with an idea. For Oscar, about ten years ago, it was a desire to start a business with a friend. «His father was actually importing a lot of like saffron from Iran,» Oscar recalled, seeing an opportunity to supply school classes and sports teams needing to fundraise. However, their initial enthusiasm met a harsh market reality: «people only buy saffron usually like November and December we didn’t even think about that before starting.»
This early stumble led to a pivot. Coffee, a more consistently consumed product, seemed like a promising alternative. Yet, success remained elusive. «We actually failed miserably again,» Oscar admitted, citing a lack of skills and the demands of balancing the nascent business with their day jobs. The venture was paused for five years. But the entrepreneurial spark didn’t die. Just before the world was upended by COVID-19, Oscar decided to reignite Kaffekassan, this time with a renewed determination «to build something great.»
Navigating the Unforeseen: COVID-19 and a Business Rebirth
Timing, as they say, is everything. Oscar had just told his boss he was quitting his job to go all-in on Kaffekassan when the pandemic hit. «In my mind, it was always like this is going to end within two weeks next month no problem,» he shared, a sentiment many can relate to. This optimism stretched into a grueling two-year period of uncertainty, financial strain, and relentless 60-70 hour work weeks. «I literally had like no money to my name after working like 60-70 hour work weeks for almost two years… at a point there I thought I was going crazy for like even trying.»
Then, a shift. In early January 2022, as media reporting on COVID began to wane, something remarkable happened. «We had like a few Tik Tok creators that we collaborated with for like really cheap… those videos took off and also like our own organic Tik Tok videos took off.» The result was explosive: «from one day to the next our business 10xed in terms of like the amount of customers that came in.» This sudden surge brought a new set of «better problems»—cash flow challenges and crashing IT systems—but it was a turning point fueled by an unexpected digital wave.
A Digital-First Brew in a Traditional Market
The fundraising niche, particularly for school and sports trips, isn’t typically synonymous with cutting-edge innovation. Oscar acknowledged this, noting, «it’s not very innovative.» So, what set Kaffekassan apart? «I would say one of the things that we’re doing differently is just how we’re building the organization and team and thinking about how we’re working,» Oscar explained. While competitors were slowly dipping their toes into social media, Kaffekassan, drawing from Oscar’s digital marketing background, adopted a «very digital first approach.» This included building their own web application to empower school classes to sell directly from their own webshops.
This digital-first mindset extended crucially to their marketing. Traditionally, fundraising companies target parents. Kaffekassan flipped the script. «We do the complete opposite and focus on all of the school classes and the kids in the school classes,» Oscar stated. His realization? «They are the ones that are actually doing the selling of the products those are the people that needs to be engaged.» This strategy not only engaged the end-sellers but also proved remarkably cost-effective. «When I tried to reach people below 18 I realized the CPMs were actually like 10 to 20 times cheaper than the parents.» This allowed Kaffekassan, with a «tiniest marketing budget,» to achieve a significantly larger output and build brand awareness directly with their most active users.
The Daily Grind: Suppliers, Cash Flow, and Growth Pains
With coffee as a primary product, managing suppliers and the freshness of the goods is paramount. Oscar’s approach to finding the right suppliers was pragmatic: «I tried a few different ones… there’s no like secret sauce.» He emphasized the importance of testing partnerships, much like hiring an employee.
The rapid growth post-TikTok boom brought its own set of challenges, particularly with cash flow. Oscar recounted a critical moment: «I was sitting with like almost zero in the bank account and I had like an invoice of a million.» Instead of panicking, he chose transparency. «I called my supplier and just told them the truth and then we could like arrange a payment schedule.» This honesty fostered a strong relationship, and they remain his supplier today. It was a stark lesson in the prevalence of cash flow issues for growing businesses and the «bad feelings… almost like shame feelings» they can evoke, despite being a common hurdle. His strategy now involves focusing on better net profit margins and aggressively negotiating payment terms, especially with international suppliers.
Systemization, Scalability, and the Long-Term Vision
Looking ahead, Oscar is focused on «systematize my business a bit more… I want to make it sellable.» This isn’t necessarily about an imminent sale but about building a robust, efficient operation that could be sold, providing him with choices. The ultimate goal for Kaffekassan is «to make the Cafe Kasan the most like well thought of company within the fundraising space in the Nordics and to be like perceived as the obvious choice.»
He sees significant scalability, projecting a potential 10 to 15 times growth in the Nordics alone, with future sights set on markets like Europe, Australia, the US, and the UK, while acknowledging the cultural nuances in fundraising practices.
When it comes to team building, Oscar’s philosophy has evolved. Initially hiring interns and focusing on engagement, he now emphasizes a deeper assessment of competencies and clearly defining problems to find the right talent, whether in-house or external.
Entrepreneurial Brew: Wisdom for Founders
Oscar’s journey offers rich insights for aspiring and current entrepreneurs. He champions the idea of tackling existing problems in established, validated markets rather than chasing fleeting «shiny new AI business IDs.» «A business is just a solution to a customer problem,» he stated, underscoring the importance of understanding «what’s the actual problem and who has that problem.»
He also debunked a common myth: «It’s a big misconception and myth that a lot of entrepreneurs like risks… I think it’s the opposite entrepreneurs hate risks it’s just like entrepreneurs can mitigate the risks by working and being thoughtful about it.»
His core advice to founders? Steer clear of vanity metrics. «My advice would be to understand the basic economics of your business and focus on profit first because I see a lot of people focusing on revenue and headcount and that’s not what… is the lifeblood of any business… the air it needs to breed its profits.»
Key Takeaways from Kaffekassan’s Journey:
- Resilience is Non-Negotiable: Overcoming initial failures and navigating crises like a pandemic requires immense perseverance.
- Innovate by Challenging Norms: A digital-first approach and targeting end-users (kids) instead of traditional decision-makers (parents) gave Kaffekassan a unique edge.
- Transparency Builds Strong Partnerships: Honesty, especially during financial difficulties with suppliers, can forge lasting, supportive relationships.
- Profitability is Paramount: Focus on sound economics and profit from the outset; it’s the true engine of sustainable growth and innovation.
- Systemize for Freedom: Building a sellable, efficient business creates future options and reduces founder dependency.
Oscar’s story with Kaffekassan is a testament to the power of a clear vision, adaptability, and a relentless focus on solving real problems. It’s a reminder that even in the most traditional niches, there’s always room for a fresh, bold approach.
This blog post is based on Oscar’s interview on the «Beauty of Business» podcast. You can listen to the full episode here.
Visit Kaffekassan HERE
