McCombs Alumni Network News

Amy George and Melissa Nathan, MBA ‘00, Founders, BlueAvocado

Eight years ago we sat in an MBA marketing class in the McCombs School listening to each other’s life story and dream. We quickly realized we were kindred spirits – people with a vision to not only create and innovate, but to leave the world a better place. In a practicum class we created the blueprint for a socially responsible venture capital firm, but we quickly recognized we needed more wisdom and a little more expertise to raise a $100 MM fund full of patient capital. We put our dreams aside and went to work for others – helping at-risk youth, working with global manufacturers to reduce their environmental impact, creating farmer’s markets.

This experience led Amy and Melissa to found BlueAvocado, a mission-driven lifestyle products company. Click “read more” for three lessons they offer to fellow socially responsible entrepreneurs.

Eight years later and four kids between us, we were paying attention to the plastic bag ban trends that were sweeping the nation, but we felt options in the marketplace didn’t meet our needs. We asked hundreds of others, and they agreed – there had to be a better solution. Together, with Melissa’s sister, Paige Davis, we founded BlueAvocado, a mission-driven lifestyle products company. Last month, we launched our first lifestyle product, BlueAvocado’s gro-pak™ is a fashion-inspired system of sustainable and reusable grocery bags. All bags are responsibly manufactured with 50 percent recycled material and can replace to up to 1,000 plastic bags every year. Each bag features a first of its kind carbon impact label to help educate consumers on their carbon impact. This is BlueAvocado’s first step toward achieving its vision of making the planet billions of pounds lighter (CO2 emissions) and giving back to hundreds of micro-entrepreneurs via Kiva.org. Basically, BlueAvocado was created to help individuals take their first step on the “green” journey. Our mantra is to make it easy to DO GOOD and GET IT DONE - and just maybe find a little joy in the shopping experience.

Twelve months after inception, 3 focus groups and 10 prototypes later, BlueAvocado has made its debut. We officially launched in November 2008 in Whole Foods Market’s Southwest region and is available in select HEBs and boutiques around the country, totaling 39 stores. In addition, customers in 26 states have made purchases on our website – returning to buy the perfect green holiday gift for family and friends.
We have taken a moment (only a moment) to pause and reflect on how UT McCombs has inspired us to realize our dreams what lessons we might offer to other fellow socially responsible entrepreneurs. We have highlighted the professors and courses that shaped us, there are certainly many more (like Jim Nolen and his small business finance class…which is a must-take for budding entrepreneurs.)

Lesson #1: Pay attention. (Lee Walker – Seven Elements of Entrepreneurship) UT MBA adjunct professor and Dell’s first CEO Lee Walker was in a unique position to ask the question of his entrepreneurship class, “What was DEC or Sun paying attention to when Dell was introduced to the market?” Computer giants were eclipsed by Dell’s business model. The question remains profound yet simple – what are you paying attention to? Entrepreneurs must continually ask this question. At BlueAvocado, this action was the source of our inspiration for our business. Plastic bag bans were being introduced and ratified by cities across the country. Our business partner Paige Davis was working in San Francisco when they became the first city to pass a plastic bag ban. Her sister Melissa Nathan was personally paralyzed by the idea – no one was addressing the reality of her life as a busy time-starved shopper. Eureka! The country’s first grocery shopping system was born, the brainchild of Melissa, MBA ‘00, mother of two, to simplify the lives of people like her who wanted to do the right thing but needed a little help (and color). Plastic bag bans and plastic bag taxes continue to be introduced in cities and countries each month. We are paying attention to our customers’ feedback, reusable bag shopping trends and green consumer trends. We are always asking what’s next? 

Lesson #2: Solidifying your vision, mission and values is critical in your first year. (Marc Seidel – Organizational Management) A business is about inspiring people to deliver results – ourselves, our customers, our employees, shareholders, and suppliers. Early in the development of BlueAvocado, we took two days to reflect on the impact we wanted to make on the world. As part of our commitment to a triple bottom line, we identified a vision that would allow us to measure the impact we were making for our shareholders, our customers, our society, and the environment. We also embraced a “One Planet” stakeholder model asserting that all of our stakeholders are united by one planet and are challenged to work together to preserve it. We also took time to describe our mission, which ultimately became our tagline – “do good. Get it done.” – and our values. Vision setting is important in any business, but for a business with social and environmental goals it is important to clearly articulate identify them and determine ways to measure results.  While our retreat seemed luxurious for any start-up trying to get to market as fast as possible, it was the most critical first step in setting the foundation for our business, for attracting employees, investors, advisors and suppliers that believed in the importance of a triple bottom line, and setting forth the intentions we have to start with a ripple and end with a splash. More details on BlueAvocado’s vision and “Blue Mantra.”

Lesson #3. Cash is king. (Jack Long – Entrepreneurship: Launch) Every business is fueled by cash. As a burgeoning small business tackling major retail partners, we kept this in the forefront of our negotiations. We also have developed a blended business model with different channels - retail, online and private label - that gives us more regular cash flow. We may not always operate this way, but we know that cash funds are business. Thanks to former professor Jack Long, we continually look at our monthly and weekly cash flow and ask ourselves, how can we run smarter?

As you can see, what we learned at the McCombs UT MBA program has shaped every day at BlueAvocado. We also know that it is not only what you know, but who you know. Melissa and I met at UT, and it is possible we owe BlueAvocado’s origins to its walls.  To celebrate our roots, we’ve designed a special signature UT Longhorn pod (licensed through CLC). This stuff-n-go bag makes for a great book bag, tailgating bag, or gift for the UT fan. It will make its official debut in January 2009, but to get a scoop on the marketplace, register on our Web site at www.blueavocado.com.

We invite you to join our journey and start your carbon diet today. Consider the perfect green holiday gift – the gift that gives every week and will eliminate up to 10 lbs of carbon each year. Enter the code “goodkarma5” for 5 percent off your order over $60. (Order by Dec. 18 for the holiday!)

Do good. Get it done. (Hook em horns!)