LabelGurus
About the Company
LabelGurus specializes in label and packaging design for emerging and established consumer packaged goods (CPG) beverage brands. Mike Shaefer, the sole founder and operator, launched the company at the end of 2019. LabelGurus caters primarily to craft breweries, providing design services that include label creation and product mockups, allowing breweries to keep up with industry trends and product releases.
The company operates with low overhead costs, spending around $260 per month on various operational expenses such as design tool subscriptions, web hosting, and internet services. This lean approach enables Mike to maintain profitability while focusing on delivering high-quality design work to his clients.
Idea Behind Company
Mike’s journey to founding LabelGurus began with his extensive background in graphic and web design, which he started pursuing at the age of 15. Before launching his own business, he worked as a head brewer and production manager at a brewery in Oakland, California. During his time there, he noticed the growing trend of craft breweries frequently releasing new beers with unique and colorful labels.
Seeing the demand for quick and appealing label designs, Mike utilized his design skills to create labels for the brewery's new products. This experience, coupled with his realization that brewing was not his long-term career path, led him to consider starting his own label design business. Encouraged by a mentor, he saw an opportunity to help other breweries with their label design needs, leading to the creation of LabelGurus.
Creating the Company
The process of building LabelGurus was swift and efficient. Mike chose the name LabelGurus to reflect his vision of potentially growing a team of packaging designers across various industries. He quickly set up a Squarespace website and an Instagram page, showcasing around 10 initial label designs. His initial offering included label designs priced at $350 each, with a 3-5 day turnaround, which he believed was a competitive rate.
Mike’s startup costs were minimal, focusing on essential tools and subscriptions necessary for his design work. He leveraged his existing design portfolio to attract clients, emphasizing the flexibility and speed of his service. The simplicity of starting a design service allowed him to begin operations almost immediately, without the need for extensive legal or administrative setup.
Launching the Business
Mike launched LabelGurus while still working at the brewery, targeting small to medium-sized breweries that needed better label designs. He used Instagram to follow thousands of breweries, eventually employing a bot to automate the process. His initial client acquisition strategy involved cold DMs and personalized video pitches, explaining how his design services could benefit potential clients.
Despite experimenting with cold emails and other outreach methods, Instagram proved to be the most effective platform for attracting clients. By vetting potential clients based on their Instagram presence and using automated tools for outreach, Mike was able to streamline his client acquisition process. His efforts paid off as he started gaining clients through direct messages and personalized pitches.
Earnings
LabelGurus has been profitable since its inception, with Mike generating around $6,000 per month in revenue. His operational expenses remain low, amounting to about $260 per month. The company’s profitability is bolstered by word-of-mouth referrals within the tight-knit craft beer community and the heavy use of Instagram for marketing.
Mike’s flexible schedule allows him to balance work and personal life, spending significant time with his young son while managing the business. Looking forward, he plans to expand by possibly bringing in additional design help and combining LabelGurus with his other design service, Topshelf. This expansion aims to provide even more comprehensive design services to a broader range of clients.
