43-year-old started a side hustle in college with $150—now it brings in $200 million a year: It took ‘everything that I had'
Looking to expand, he brought in a partner — co-founder Jared Barnett — and hired a handful of employees to grow Insomnia's operations. He reinvested all of the business' profits, building a website for online ordering and renting a commissary kitchen off-campus to increase cookie production. The first-time entrepreneur spent years experimenting with different business models to reach profitability again, staying funded through angel investors. He triedBarnett left the company during that period, selling his equity stake to Berkowitz."At that time, my vision for the company was no longer aligned with Seth's, and we agreed to part ways," Barnett says.Seth Berkowitz estimates he spent roughly $150 on baking ingredients to start Insomnia Cookies.
"2009 and 2010 some of the hardest years ever at Insomnia Cookies," says Berkowitz, adding:"There wasn't anyone else to do it. So, if I was going to grow the business ... it was going to take everything that I ."After nearly a decade of experimentation, Berkowitz returned to a brick-and-mortar model. A"really huge sign" in the window would create buzz, he theorized, and quick deliveries would encourage repeat customers.