In this episode of Startups with Stu, Join host Stuart Draper, as he explores the innovative journey of Subitt.io, a startup that's transforming how small businesses implement subscription models to drive customer retention. Founder Nick Hepworth shares his insights on building a platform that makes subscription services accessible to mom-and-pop shops, discussing the challenges of educating both businesses and customers while navigating the complex world of local commerce.

Nick Hepworth embodies the entrepreneurial spirit that drives innovation in unexpected places. A founder who traded the familiar territory of Alabama for the startup ecosystem of Idaho, Hepworth brings a fresh perspective to an age-old business challenge: how can small, local businesses compete with the subscription services that are dominating modern commerce? His journey from working at a marketplace startup in Mississippi to building Subitt.io, a platform that democratizes subscription services for small businesses, offers valuable insights into the intersection of technology and traditional retail.

This podcast episode reveals a founder who isn't afraid to get his hands dirty, literally spending days in coffee shops and barbershops to understand the unique challenges faced by small business owners. With his team of five, Nick Hepworth has built something that goes beyond traditional loyalty programs, creating a genuine subscription ecosystem that puts the power of recurring revenue within reach of the neighborhood bakery or local gym. The story of Subitt is ultimately about bridging the gap between innovative business models and the practical realities of running a small business.

The Genesis of an Idea: From Marketplace to Subscription Model  

The creation of Subitt didn't happen in isolation. Hepworth's experience working with an auction-based marketplace in Mississippi provided the foundational understanding of how digital platforms could transform traditional business interactions. This exposure to the elegance of marketplace models like Etsy and Amazon sparked a crucial question: why couldn't subscription services be just as accessible and straightforward for small businesses?

The initial inspiration came from a personal frustration with the complexity of implementing subscription models. When Hepworth attempted to create a gym supplement subscription service, he encountered the same barriers that plague thousands of small business owners: technical complexity, high costs, and integration nightmares. This personal pain point became the seed for Subitt's mission. Rather than accepting these limitations as insurmountable obstacles, Hepworth saw an opportunity to build a solution that would level the playing field.

Working alongside his computer science roommate from Tokyo, Hepworth began the painstaking process of translating vision into reality. The early days required extensive customer development, spending countless hours with business owners to understand their specific needs and challenges. This grassroots approach to product development would become a defining characteristic of Subitt.io's growth strategy, emphasizing deep customer relationships over rapid scaling.

Building Bridges: The Challenge of Education in Innovation  

One of the most significant hurdles Subitt.io faced wasn't technical but educational. The concept of in-store subscriptions represented a paradigm shift for both business owners and their customers. Unlike traditional loyalty cards or punch card systems, Subitt.io's approach required a fundamental reimagining of the customer relationship. Business owners needed to understand not just how the technology worked, but why this approach would generate more value than their existing retention strategies.

The educational challenge extended beyond the business owners to their staff. Hepworth discovered that successful implementation required training entire teams, from management to baristas. Each employee needed to become a subscription advocate, understanding how to present the value proposition to customers in a natural, compelling way. This meant developing materials, creating scripts, and providing ongoing support to ensure consistent messaging across all customer interactions.

The customer education component proved equally complex. Explaining to a customer why they should prepay for coffee or dog grooming services required careful messaging and demonstration. Subitt.io's innovative use of NFC technology helped create a memorable interaction point, but the real work happened in those crucial moments when staff members explained the benefits and addressed customer concerns. Success depended on making subscription services feel less like a commitment and more like a smart way to engage with businesses they already loved.

Strategic Focus: Quality Over Quantity is Customer Success  

The conversation with Stu revealed a critical strategic insight: the temptation to rapidly scale by adding more businesses often undermines the foundation needed for sustainable growth. Hepworth's current situation of having 50 businesses averaging ten subscribers each illustrates a common startup dilemma. While the temptation exists to continually onboard new businesses, the real value lies in helping existing customers achieve remarkable success.

Stu shares a strategy with Hepworth and suggests a fundamental shift in thinking. Rather than spreading resources thin across many new acquisitions, the focus turned to identifying the top-performing businesses and investing heavily in their success. The focus to shift from onboarding new business, to rather creating compelling success stories with existing businesses that would naturally attract new businesses through word-of-mouth and referrals. This approach required resisting the urge to chase vanity metrics in favor of meaningful customer outcomes.

Furthermore, Stu also suggests rethinking the pricing subscription strategy for onboarding new businesses. The initial $250 setup fee, while modest in absolute terms, proved to be a significant barrier for many small businesses. By reconceptualizing this as an investment in joint success rather than a transaction fee, Subitt.io could position itself as a partner rather than a vendor. This shift in perspective opened the door to more meaningful relationships and better long-term outcomes for both parties.

Implementation Excellence: The Art of Hands-On Growth  

Success in the small business market requires a level of personal attention that doesn't scale through traditional means. Hepworth learned that effective implementation meant physically being present in stores, working alongside staff to refine processes and address real-time challenges. This hands-on approach provided invaluable insights into the practical aspects of subscription adoption that couldn't be captured through surveys or remote consultations.

The development of in-store systems reflected this practical focus. Rather than relying solely on QR codes, Subitt.io innovated with NFC cards that created a more engaging interaction. This technology choice demonstrated an understanding that successful adoption required solutions that felt natural within existing workflows while still creating moments of delight for customers. The app design prioritized simplicity and functionality, recognizing that both business staff and customers needed intuitive tools that worked seamlessly in busy environments.

The implementation process also revealed the importance of flexibility in supporting diverse business models. From coffee shops to barbershops to pet services, each business type required customized approaches while maintaining the core subscription functionality. This adaptability, combined with comprehensive support during the initial rollout phase, became a key differentiator in a market where many solutions offer one-size-fits-all approaches that fail to address specific industry needs.

Growth Strategies: Learning from Success Stories  

The conversation highlighted several critical factors that separate thriving businesses from struggling ones. Success in the subscription space requires more than just the right technology; it demands strategic thinking about customer value, operational excellence, and continuous optimization. Hepworth's experience demonstrates that successful subscription businesses focus on delivering clear, measurable value that customers can't easily replicate elsewhere.

Key elements of successful subscription implementation include:

  1. Clear Value Proposition: Customers must immediately understand what they're getting and why it's worth the commitment

  2. Operational Excellence: Staff training and system integration need to be seamless and sustainable

  3. Customer Experience: Every interaction should reinforce the value of the subscription

  4. Pricing Strategy: The subscription model should offer genuine savings or convenience that justify the commitment

  5. Feedback Integration: Regular assessment and adjustment based on customer and business feedback

The discussion also emphasized the importance of choosing the right initial customers. Rather than pursuing any business willing to try the platform, focusing on businesses with high potential for success creates a foundation for sustainable growth. These success stories become powerful marketing tools, demonstrating real value to prospective customers who might otherwise be skeptical of a new approach.

Lessons in Team Development and Resource Management  

The challenges Hepworth faces with team building reflect broader issues in startup development. Losing valuable team members like Bobby Lucas highlights the tension between immediate financial constraints and long-term growth needs. This situation illustrates a common startup paradox: the most valuable contributors often generate value that takes time to materialize, creating cash flow challenges that can force difficult decisions about compensation and retention.

The solution requires thinking creatively about compensation structures and value creation timelines. Rather than focusing solely on immediate revenue generation, successful startups find ways to accelerate the value realization cycle. For Subitt.io, this might mean finding ways to help businesses achieve subscriber growth more quickly, thereby generating revenue that can support higher compensation for key team members.

Resource allocation decisions also reflect the broader challenge of startup prioritization. With limited funds and time, every decision about where to focus energy has significant consequences. The lesson from Hepworth's experience is that sustainable growth often requires resisting short-term pressures to pursue strategies that may undermine long-term success. This might mean accepting slower growth initially to build a stronger foundation for future scaling.

Talking Action with Subscription

The story of Subitt.io offers valuable lessons for any business leader considering subscription models or entrepreneurs looking to bridge the gap between innovation and practical implementation. Success in this space requires a combination of technological innovation, deep customer understanding, and a relentless focus on value creation.

For small business owners inspired by this conversation, the time to act is now. The subscription economy isn't just for software companies and massive corporations—it's an opportunity for local businesses to build stronger, more predictable relationships with their customers. Whether you're running a coffee shop, barbershop, or any business with repeat customers, consider how subscription models might transform your customer relationships and provide more stable revenue streams.

The key is to start with a clear understanding of the value you provide and how subscription services can enhance that value. Don't try to copy what works for other businesses; instead, think creatively about how subscription models can solve specific problems for your customers while strengthening your bottom line. With the right approach and tools like Subitt.io, even the smallest businesses can compete effectively in today's subscription-driven economy.

Take the first step today by evaluating your current customer retention strategies and exploring how subscription models might improve both customer satisfaction and business stability. The future of small business lies not in competing against subscription models but in embracing them to create stronger, more sustainable relationships with the customers you serve.

Whether you're currently running a small business or contemplating how to improve customer retention, consider starting small like Nick did with his first few local businesses in Idaho. Remember that successful models aren't built overnight—they require patience, education, and a willingness to iterate based on customer feedback.

If you're inspired by Subitt.io's journey from concept to 50 Business Subscription partners and growing, visit Subitt.io.io to see how their platform might transform your customer relationships and create predictable recurring revenue.

Thank you for time in joining us in this explorative entrepreneurial journey. Share this story with fellow business owners, entrepreneurs, and anyone looking to understand how innovation can transform traditional business models! Don't forget to follow Stuart Draper and Startups with Stu for more such inspirational and enlightening content.


Related blogs

90% to 60%: The COVID Pivot That Doubled This Founder's Hourly Rate

90% to 60%: The COVID Pivot That Doubled This Founder's Hourly Rate

When Akvile DeFazio fled Lithuania during the Cold War with her mother and nothing but a wooden crate built by her great-grandfather in the late 1800s, entrepreneurship wasn't even on her radar. Yet two decades later, she would build AKvertise, Inc., a thriving social media advertising agency that has achieved something almost unheard of in the business world: perfect client retention over an entire decade. Not a single client has ever fired her in ten years of operation. Today, she manages this seven-figure business while being a devoted mother to a kindergartner, often starting her workdays at 4 AM and finishing by the time her daughter returns from school.

May 27, 2025
Read More
The Startup CMO Playbook: How Stukent Disrupted EdTech Through Unconventional Marketing

The Startup CMO Playbook: How Stukent Disrupted EdTech Through Unconventional Marketing

Trevor Erikson's journey in the education technology and powersports industries is a remarkable example of how unconventional thinking and authentic customer engagement can lead to extraordinary success. As Stukent's first hire and CMO, Trevor helped transform the company from a basement startup into a leader in EdTech by breaking the mold of traditional academic marketing. His innovative strategies, such as personalized outreach and high-touch engagement, revolutionized how educational companies connect with professors. Later, as co-founder of Deviant Ink, a powersports graphics company, Trevor applied the same principles of content-driven marketing and relationship-building to achieve impressive growth. His story underscores the power of creativity, persistence, and the belief that genuine connections—whether with educators or customers—are the key to scaling businesses across industries.

Dec 31, 2024
Read More
How Custom Sneakers Are Disrupting B2B Marketing: Matt Williams' DSCMFRT Story

How Custom Sneakers Are Disrupting B2B Marketing: Matt Williams' DSCMFRT Story

In the B2B marketing industry, success stories often follow a predictable script - digital ads, content marketing, and traditional corporate gifting like branded mugs and t-shirts. But Matt Williams' journey breaks every convention. As a partner at DSCMFRT (pronounced "discomfort"), he's transforming how companies approach brand visibility by turning Nike and Adidas sneakers into viral marketing assets. Through an innovative blend of custom sneaker design and social media strategy, he's helping businesses convert their corporate logos into footwear that employees actually want to wear and share. Matt joined DSCMFRT in 2024, partnering with founder Caleb Williams who had already built a significant following in the sneaker customization world. Their approach isn't just about selling custom sneakers; it's about creating shareable moments that turn mundane corporate branding into viral social media gold while building recurring revenue streams through social media management and LinkedIn advertising services. The Corporate Gifting Revolution During his career in the startup world, Matt Williams hit a critical turning point when he discovered DSCMFRT's potential. After years of seeing companies struggle with traditional corporate gifting – the standard three-quarter zips, mouse pads, and mugs that often end up forgotten in closets or pantries – he recognized an opportunity to reimagine the space. While most focused on conventional swag items, Matt saw the potential to bridge the gap between corporate branding and authentic engagement. This insight was sparked by a simple observation: companies were spending significant budgets on corporate gifts that neither excited nor engaged their recipients, creating a massive opportunity for innovation in the space. The breakthrough arrived through custom sneakers. "We were looking at how to gift something that was really impactful that people would wear, and that was very shareable," Matt explains. Instead of creating another forgettable corporate gift, he envisioned products that would become conversation pieces, displayed proudly on bookcases or worn daily by employees. This vision aligned perfectly with DSCMFRT's established reputation in the custom sneaker space. With an existing following of 50,000 Instagram followers, the company had already demonstrated its ability to create designs that resonated with audiences and sparked organic conversations. The partnership presented an opportunity to evolve from what was primarily an individual consumer-focused sneaker customization business into a full-scale B2B marketing solution. Matt recognized that custom sneakers could be more than just another corporate gift – they could be the centerpiece of a comprehensive brand initiative. By combining Caleb's design expertise with innovative B2B marketing approaches, they could offer companies something unique: a tangible product that not only delighted recipients but also generated organic social media engagement. This approach would solve multiple problems simultaneously – creating memorable corporate gifts, driving social media engagement, and helping companies stand out in increasingly crowded marketplaces. Turning Sneakers into Social Gold At the core of DSCMFRT's success lies an innovative approach to content creation that transforms the sneaker customization process into viral marketing content. The company's method revolves around creating 30-45 second videos showcasing the entire customization journey, from blank canvas to finished masterpiece. These videos, particularly the satisfying tape-peel reveals, have proven extraordinarily engaging on LinkedIn, with single videos generating up to 40 hours of total watch time within just a few days. This technique has been especially effective at capturing attention in an era of declining attention spans, making complex customization processes digestible and engaging. The impact extends far beyond just views, sparking a phenomenon in corporate culture where customized sneakers become conversation starters and brand amplifiers. One notable example is a commercial real estate company that implemented region-specific designs, crafting distinct styles for different locations – Husker-themed shoes for Nebraska, Queen City designs for Charlotte, and custom versions for California and New Jersey offices. This initiative not only fostered healthy competition between offices but also created multiple opportunities for social media content and employee engagement. The sneakers have become what Matt calls their "Trojan horse" - the entry point to a much broader digital presence. Each client now receives not just the physical sneakers but also three fully edited video assets showcasing their customization process. These videos become powerful marketing tools, driving traffic to clients' websites and LinkedIn business pages. The strategy has proven so effective that DSCMFRT has evolved from a sneaker design company into a digital growth partner, using their unique product to open doors to expanded marketing opportunities. Building Recurring Revenue The true innovation in DSCMFRT's business model lies in its evolution from one-off product sales to recurring revenue. Traditional custom product businesses often struggle with scale, limited by production capacity and slim margins. However, DSCMFRT discovered a unique pathway to growth by turning their viral social media content into diverse income channels. What started as custom sneaker design has evolved into a multi-faceted business offering, creating multiple touchpoints for client engagement and growth. The company's revenue streams have diversified significantly since Matt joined as a partner: Custom Sneaker Design: High-end corporate sneakers priced $400-$500 per pair Corporate Gifting: Bulk orders for employee rewards and client appreciation Video Content Creation: Three professionally edited videos per customization Social Media Management: Ongoing LinkedIn content strategy and management LinkedIn Ad Services: Converting viral content into paid advertising campaigns Trade Show Solutions: Custom footwear for brand visibility at events This diversification has allowed DSCMFRT to transition from project-based income to monthly recurring revenue, significantly improving their business sustainability. The focus on LinkedIn as their primary platform has become a key differentiator. While competitors struggle with content creation and social media presence, DSCMFRT's method gives clients an organic reason to post compelling content regularly. Their strength lies in making corporate social media feel authentic rather than forced, using the universal appeal of custom sneakers to drive meaningful interactions. This approach has not only helped their clients achieve viral growth but has also established DSCMFRT as LinkedIn marketing experts, paving the way for long-term partnerships. Mastering Social Media Growth Despite having a visually appealing product, success on LinkedIn requires more than just eye-catching content. DSCMFRT follows a carefully crafted method they call "plant, grow, and harvest." The company prioritizes letting their clients post first, then amplifies content through their own channels. This coordinated system ensures maximum visibility while maintaining the authenticity of each client's brand voice. Their method extends beyond single posts, showing clients how to mobilize multiple team members for expanded reach and engagement. The results speak for themselves, with engagement metrics that consistently defy platform averages. Even seemingly simple content, like tape-peeling videos during the customization process, transforms into viral social media gold. The key lies in their mastery of LinkedIn's professional dynamics – blending corporate polish with authentic, behind-the-scenes content that resonates with business audiences. Their box opening reaction videos, in particular, have become a powerful tool for showcasing the emotional impact of their custom creations. Their success stems from a commitment to daily engagement and community building on LinkedIn. By switching their feed settings from "top" to "recent" posts, they've expanded their reach beyond first-degree connections, connecting with a broader, more diverse audience. This technique, combined with well-timed humor and consistent posting, has helped them build a highly engaged following that continues to grow organically. Scaling Without Headcount One of DSCMFRT's most impressive achievements has been their ability to scale without proportionally increasing their workforce. Rather than building an army of cobblers, they've focused on maximizing each customization's value through content creation and digital marketing services. This approach enables revenue growth without the traditional constraints of manufacturing businesses, where expansion typically requires linear increases in production capacity and staffing. The company achieves this through a structured production process that captures multiple forms of value from each project. Every custom sneaker becomes not just a physical product, but a source of viral content, a case study in LinkedIn marketing, and a potential gateway to expanded services. This multiplier effect means that each project contributes to immediate revenue, content creation, and future client acquisition. Their approach to client onboarding strengthens this efficient scaling model. Through detailed onboarding forms and mockup processes, they gather complete information about each client's vision and brand guidelines upfront. This systematic process allows them to scale their customization while maintaining quality and consistency, proving that creativity and efficiency can coexist in a custom product business. Looking Ahead The future of B2B marketing lies at the intersection of physical products and digital content, and DSCMFRT is positioning itself at the forefront of this convergence. By reimagining traditional corporate gifting as a vehicle for viral marketing, they've created a model that delivers value far beyond the physical product. Their success demonstrates that in today's digital-first business environment, the most effective marketing strategies often begin with something tangible that people can touch, wear, and share. As businesses continue to search for ways to stand out in crowded marketplaces, DSCMFRT's innovative approach to combining physical products with digital marketing offers a blueprint for success. Their journey from sneaker design company to full-scale marketing partner shows that with the right vision, it's possible to build a scalable business model that turns traditional limitations into unique advantages. For entrepreneurs looking to innovate in established industries, DSCMFRT's story provides valuable lessons in the power of creative thinking and bold evolution. Thank you for joining me this week. Don’t forget to share Startups with Stu with your friends, family, and your favorite founder so they can check out the show!

Jan 28, 2025
Read More

Comments