934
9 min 53 sec

Cigar Subscription Box Delivers Smoking Returns

A software engineer starts a premium subscription box service for savvy cigar smokers.
Niche Ideas Product Service Subscription Service

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What It's About

Monthly cigar boxes deliver smoking profits!

Business Model
Service
Skills Required
Sourcing & Coordination
Complexity
Medium
Profit Potential
Medium

Words of Wisdom

Michael had some great advice when we talked to him! He said, "Figure out what you want and work backward. Don't expect to plant the seed and pick the fruit at the same time, it takes time to build processes, customer base, and profits."

Fun Fact

Southern Cigar was the first online cigar subscription box! In its early days, Micheal’s tobacco license was addressed to his apartment which allowed for random checks by the Bureau of Alcohol, Tobacco, and Firearms (ATF). Once while deep in the throes of studying for final exams, the ATF decided to pay him a visit. Apparently, Michael’s apartment was up to snuff, except for one minor detail—he was missing an “Employees Must Wash Their Hands” sign in his bathroom. Can’t argue with that—it was technically listed as his “place of business.”

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.



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

Yours in the revolution,

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Quote of the Day
"Figure out what you want and work backward. Don’t expect to plant the seed and pick the fruit at the same time. It takes time to build processes, a customer base, and profits."
—Michael Arciola #SideHustleSchool

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To infinity and beyond,

Chris Guillebeau