Cigar Subscription Box Delivers Smoking Returns

Notes from Chris

Episode 934

Michael Arciola is a curious person with a great interest in learning. He double-majored in computer science and business while attending Florida State University. While in the throes of these academic pursuits, he stumbled upon an interesting observation.

Computer science students seemed to actively use their knowledge and newfound skills to build things, while the business students never seemed to exercise their skills at all. The business school seemed to be rooted in theory rather than doing.

Michael found this odd. Why wouldn’t you reinforce what you were learning by applying it to the real world?

So, he decided to put his education to the test... and build a real business. His approach would be different. This wouldn’t be “following his passion.” It stemmed from a deep curiosity to understand how the process of building a business worked. And it would be an experiment in learning.

His idea needed to meet certain criteria and be viable on its own. For months, he considered different options and possibilities.

Then, while on a visit to New Orleans during his junior year at Florida State, he was struck with a smoldering idea. He was relaxing by the hotel pool and saw a man smoking a cigar. A humidor went off in Michael’s head.

He was already familiar with the subscription box model from his brainstorming sessions, and he had an appreciation for cigars. He decided to do some research.

What he liked about the cigar niche was that it’s well known, has a loyal following, and not much has changed about cigars over the years (as opposed to software engineering, where he would eventually begin his other career).

While conducting further research, Michael observed the limited selection of cigar boxes sold by ecommerce shops. Most were low quality. None of the shops were offering unique selections categorized by flavor, size, shape, strength, origin, or manufacturer.

What if he were to launch a premium subscription box service focusing on quality cigars?

After further brainstorming, Michael pitched the idea to his roommate, a fellow cigar aficionado. They decided to go for it. Souther Cigar Company officially launched in September 2015.

Since its 2015 launch, Southern Cigar Company has reached a sustainable recurring income of $4,500 a month.

Michael has since moved on from the glory days of Florida State and currently holds a job with Google as a software engineer. He now wants to continue the steady growth achieved with Southern Cigar Company while tending to a new business venture called Formal Founder, which helps young startups verify potential business names.

It’s not just in computer science where doing is better than theory. Michael’s glad he didn’t let his idea go up in smoke.

---

MENTIONED IN THIS EPISODE:

• Souther Cigar Company: Learn more about this smoldering side hustle over on Michael's website!
• CrateJoy: The platform that Michael used to create his subscription service
• Formal Founder: If you're in the process of choosing a name for your side hustle, head on over to Michael's other side hustle to make sure that it's available
• Natural Hair Enthusiasts Create Curl-Care Empire: After winning $100,000 on Who Wants to Be a Millionaire, a couple embarks on a journey to sell subscription boxes featuring natural hair products
• Friends Foster Korean Face Mask Frenzy: When several friends and colleagues discover the consumer craze over Korean face masks, they team up to create their own subscription box side hustle
• Comic Book Curator Creates Custom Crate Subscription: A Sacramento-based comic and collectibles owner sparks an interest in reading with a monthly comic book subscription box service
• What’s In the Box? Low-Carb, Low-Sugar Snacks: A CPA and Side Hustle School listener learns to start her own subscription box. In less than a year, it brings in more than $5,000/month!
• Business Analyst Turns Weight Loss Problem Into $130,000 Solution: A woman who undergoes bariatric weight loss surgery creates a subscription service to deliver monthly supplements and resources
• Oklahoman Spreads Light, Sells Candles, and Shares Profits: A project manager for an oil & gas company burns the midnight oil and makes eco-conscious candles for profit and charity
• Dutch Personal Shopping Service for Kids Measures Up: This clothing subscription service delivers a box of children’s clothes to parents in The Netherlands each month. It’s a close-knit competition, but you’re tailored to win!
• Entrepreneur Reads Tea Leaves to Launch Subscription Hustle: A New York-based consultant brews his need for energy into a tea delivery service that offers customers a chance to discover new tea varieties each month

SEE ALSO:

• A Packed Closet Leads to Secondhand Subscription Boxes: A professional organizer finds a way to stitch her passion for thrift shopping into profits
• Nature-Loving Neighbors Create Kids Subscription Box: When two couples can’t figure out how to get their kids outdoors and away from electronics in the winter, a personal challenge blossoms into an unbeLEAFable side hustle
• Subscription Box Service Delivers Candy from Japan: An expat living in Japan packages candy twice a month and sends it around the world to hundreds of people who pay $29/month

Inspiration is good; inspiration combined with action is better. Now get back to work!

Yours in the revolution,