Advice Line with Carlton Calvin of Razor

This episode of the Advice Line features Carlton Calvin, co-founder and CEO of Razor USA, who discusses his experience building the scooter company into a multi-billion dollar business and offers guidance to three callers facing different entrepreneurial challenges.

Carlton begins by discussing his ongoing efforts to institutionalize his trend-spotting abilities and shares his recent success identifying the resurgence of hacky sacks. He also discusses a patent infringement case he won against hoverboard copycats, explaining that while victories in court are satisfying, they often yield minimal financial returns because defendants typically lack substantial assets. He argues that the patent system works better for larger disputes between well-funded companies, and that most brands are better served focusing on building brand strength rather than pursuing costly litigation against small-time copycats.

The first caller, Sean Barasa, is a pediatric nurse from Saskatchewan who created a party game called Eulogy (spelled Y-O-U-L-O-G) during COVID. The game involves players creating characters and taking them through different life stages before writing eulogies. Sean has sold nearly 1,000 units and given away about 500 more, with current inventory of 500 units. He wants to know how to expand from his current success to become a household name in party games. Carlton advises that while licensing to a toy publisher is traditionally a path to scale, publishers typically want proven products with existing traction rather than just ideas. He recommends that Sean continue building the business himself, as that's where the real upside lies if the product becomes successful. Carlton notes that small-scale inventors rarely succeed in licensing without demonstrated market demand. Guy adds that Sean should aim to prove out the market more thoroughly before approaching publishers, pointing to Exploding Kittens as an example of a game company that built success independently.

The second caller is Shireen Tippett from Houston, who runs Honey Bespoke, a personalized stationery business generating nearly $120,000 in revenue last year. She designs flat note cards, birthday invitations, and collegiate-licensed stationery. Most sales come through Etsy, but she wants to transition customers to her own website while maintaining her existing customer base. She's concerned about standing out in a saturated market. Carlton suggests getting into physical retail stores, particularly stationary retailers associated with the universities she has licenses from. Guy emphasizes that paid advertising on Meta showed promise (sales skyrocketed) but Shireen abandoned it because she didn't understand how to execute it effectively. Guy recommends that Shireen create video content featuring herself—sketching designs, telling her origin story as a mom who created cards she couldn't find elsewhere—and run modest ad campaigns ($100) testing different approaches. Both Carlton and Guy stress that putting her face and personality into the brand is crucial, as competitors lack that personal connection. They also recommend that she attend trade shows and work with sales representatives to get products into retail locations, noting that many businesses focus too heavily on digital channels while ignoring traditional retail opportunities.

The third caller is Mark Ganter, who owns Little Water Distillery in Atlantic City, a craft spirits business operating since 2016. He started the company after his father received a copper pot still as a 70th birthday gift, which sparked interest in the craft distillation laws being enacted in New Jersey at the time. The distillery makes gin, vodka, rum, and bourbon, but has gained particular traction with three ready-to-drink cocktails: 48 Blocks Espresso Martini, 48 Blocks Chocolate Martini, and barrel-aged Old Fashioned. Mark explains that the spirits industry is heavily regulated, and he initially tried direct distribution to bars and restaurants but recently switched to working with distributors because the direct model wasn't profitable. He notes that he's carrying too many SKUs (individual products) and has taken on significant debt during recent years of contracting sales. His question focuses on how to establish his premium Espresso Martini as the industry standard when the broader trend is trading down toward canned, lower-quality options for convenience. Carlton advises Mark to focus on telling the story of his product's quality—the Brazilian espresso from La Cologne, the premium chocolate from a small North Carolina producer—through social media and Instagram presence. He should show the distillation process and what makes his product different. Guy recommends that Mark dramatically reduce his SKU count to conserve cash and focus on the products with the highest margins and demand: the two martini cocktails and the vodka base. Guy notes that companies often die from running out of cash rather than lack of demand, and that simplifying the product line will help optimize cash flow. Carlton adds that while cans are trendy in the alcohol industry, Mark shouldn't ignore the trend entirely but rather consider how to participate in it while maintaining premium positioning—perhaps through extensions like combining espresso and chocolate into a "Mochettini." Both advisors emphasize that Mark needs to delegate more and trust sales representatives, as trying to do everything himself limits growth potential.

Carlton concludes by reflecting on the biggest lesson from his career: the importance of delegation. He notes that while it's satisfying to do everything yourself, it's impossible to scale that way. Sales representatives, despite taking a percentage commission, are far better at selling than the founder can be alone. This realization, he says, transformed his business.