E35: Julian Hearn: Huel - £45 Million In 4 Years

Jul 3, 2019
Overview

Julian Hearn, founder of Huel, discusses his entrepreneurial journey from affiliate marketing to building a global meal replacement brand. He shares insights on overcoming personal struggles, the importance of purpose-driven work, managing mental health, and the value of experiences over material wealth.

At a Glance
14 Insights
48m 48s Duration
16 Topics
4 Concepts

Deep Dive Analysis

Introduction to Huel and Julian Hearn's Entrepreneurial Journey

Julian's First Business: Affiliate Marketing

Motivation and Origin Story of Huel

Unique Strengths and Philosophy Behind Huel's Success

Sacrifices and Hardships of Entrepreneurship

Knowing When to Quit vs. Keep Going in Business

Dealing with Criticism and Social Media Negativity

Unsung Realities of Building a Physical Product Business

Advice for Aspiring Entrepreneurs: Where to Start

Impact of Money on Personal Life and Happiness

Protecting Mental Health as an Entrepreneur

Experience with Chronic Fatigue Syndrome

Transitioning from CEO Role and the Founder's Perspective

Personal Regrets and Philosophy on Relationships

Defining Success and Future Outlook for Huel

Dream Dinner Party Guests and Favorite Meal

Founder vs. CEO

A founder is the originator of a company, a title that cannot change, representing the initial vision and creation. A CEO is a role focused on the day-to-day operations, finance, HR, and other broad management tasks, which can be passed to different individuals over time.

Chronic Fatigue Syndrome

A condition experienced by Julian Hearn, characterized by extreme tiredness and reduced ability to get things done, which he attributes to burning the candle at both ends. While some consider it a 'woolly' or undefined condition, it was a very real experience for him.

Entrepreneurial Flywheel/Snowball

The initial phase of a business where intense effort and commitment are required to get momentum, like a snowball rolling downhill. This period is often a 'sprint' where the business's survival depends on constant nurturing and work.

Lifestyle Business

A business designed to provide its owner with a desired lifestyle, often prioritizing personal satisfaction and work-life balance over aggressive growth or maximizing profit. Julian's initial goal for Huel was to be a lifestyle business with a target of a thousand monthly customers.

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How did Julian Hearn become an entrepreneur?

Julian became an entrepreneur out of necessity at 37, seeking to work from home after a demanding commute and personal struggles with miscarriages. He learned affiliate marketing in his bedroom, built a successful business, and sold it three years later.

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What inspired the creation of Huel?

Huel was inspired by Julian's personal experience with strict diet and exercise, realizing the difficulty of consistently eating healthy, convenient food. He aimed to create a nutritionally complete, convenient, and healthy powdered meal replacement.

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What are the key benefits of Huel as a product?

Huel offers convenience, complete nutrition, a 12-month shelf life reducing food waste, cost-effectiveness, and is vegan, ticking many boxes for health, sustainability, and practicality.

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What sacrifices are involved in building a successful business?

Building a business often requires significant sacrifices, including not paying oneself for years, working seven days a week for extended periods, experiencing burnout, and potentially straining personal relationships, as Julian did with his marriage.

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How does one know when to quit a struggling business?

Julian suggests that if a business is 'lukewarm' after two years, it might be a signal to quit. He believes that successful ventures often show instant or quick results, with demand being evident early on, rather than requiring constant 'hard graft' to chase interest.

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How should entrepreneurs deal with social media criticism?

Julian initially tried to argue with critics but learned to ignore them. His current approach is to give one empathetic answer stating his side of the story and then disengage, sometimes using a quote from Ratatouille about the worthlessness of critics.

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What unexpected challenges arise when building a physical product business?

Beyond marketing and branding, a physical product business involves many unsexy, basic tasks like managing purchase orders, finding office space, recruiting staff, handling customer service, fulfillment, and even learning practicalities like taping cardboard boxes.

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How has having money impacted Julian Hearn's life?

While money provides financial security and allows for nicer experiences like holidays and helping friends/family, it hasn't fundamentally changed Julian's day-to-day life. He still lives in the same town and socializes with the same friends, prioritizing experiences over expensive material possessions.

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How can entrepreneurs protect their mental health?

Protecting mental health involves maintaining close friendships and social circles, avoiding isolation, and recognizing signs of burnout. While intense work is necessary, it's crucial to eventually find a work-life balance and step back from full-pace work to prevent long-term fatigue.

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Why did Julian Hearn step down as CEO of Huel?

Julian relinquished the CEO role because his core strengths lie in brand and marketing, not in the broad operational, HR, finance, or product development aspects required of a CEO. He found many CEO discussions 'dull' and believed bringing in someone better suited for those tasks allowed him to focus on what he excels at, while still steering the overall brand vision.

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What is Julian Hearn's perspective on marriage and long-term romantic relationships?

Julian believes marriage is illogical due to the commitment to someone who may change, and he wouldn't do it again. He finds friendships, which lack formal contracts and pressure, to be more long-standing and less complicated, suggesting that romantic relationships could also thrive by simply being nice to each other without extra pressure.

1. Solve Your Own Problem

Create products or services to address problems you personally experience or that affect people close to you, as this provides an immediate feedback loop and helps develop the best solution quickly.

2. Delegate CEO Role Strategically

Consider delegating the CEO role if your core strengths lie elsewhere (e.g., brand, vision) to allow a more skilled operator to manage daily complexities, enabling you to focus on high-level strategy and what you excel at.

3. Avoid Entrepreneurial Burnout

Recognize the signs of burnout, such as extreme tiredness or dreading work, and proactively adjust your pace and work-life balance to prevent chronic fatigue, especially as your business matures from a sprint to a marathon.

4. Build Purpose-Driven Businesses

Focus on building a business you are genuinely passionate about, proud of, and that benefits the world, rather than solely chasing financial gain, as this authentic approach fosters higher quality and long-term motivation.

5. Prioritize Experiences Over Possessions

Spend money on novel experiences and shared moments with loved ones rather than expensive material goods, as experiences tend to provide more lasting happiness and memories.

6. Maintain Strong Social Connections

Prioritize maintaining strong social connections with long-term friends and avoid isolating yourself, as these relationships are crucial for mental well-being and grounding amidst entrepreneurial pressures.

7. Prioritize Quality Over Cost-Cutting

Invest in the best ingredients and packaging for your product, especially if financial pressure is not your primary driver, to create a high-quality offering you are truly proud of.

8. Assess Early Business Traction

If a minimal viable product doesn’t generate demand or instant results within the first few months, it might be an indication to pivot or reconsider the idea, rather than continuing with a ’lukewarm’ venture for years.

9. Embrace Early Business Immersion

Be prepared for intense dedication and long hours in the early stages of a business, as it often requires total immersion and personal sacrifice for 18 months or more to get off the ground.

10. Learn New Skills on Side

Before fully committing to a new venture, spend a significant period (e.g., a year) learning and practicing the necessary skills on the side while maintaining your current job.

11. Don’t Directly Chase Numbers

Focus on creating a quality product you genuinely believe in and would use yourself, rather than solely chasing large revenue numbers, as this authentic approach can paradoxically lead to greater, unexpected growth.

12. Manage Criticism Empathetically

When facing unjustified criticism, provide one empathetic and factual response to state your side of the story, then disengage, as continuously arguing with critics is often unproductive.

13. Master Unsexy Business Basics

Be prepared to learn and manage the unglamorous, fundamental operational aspects of a business, such as purchase orders, recruitment, fulfillment, and packaging, as they are crucial for a physical product’s success.

14. Define Relationship Needs Clearly

In personal relationships, define what you truly want and seek partners who align with those desires without significant compromise, as forcing compatibility can lead to unhappiness.

I didn't do it to make money because I already made my money. So I didn't need that. I did something that I generally wanted. And the objective was to do something I was proud of. And the size of the business was irrelevant.

Julian Hearn

I think sometimes people think it's too hard and don't start. And I just think you should, I think people should have a go at it. I don't think that I'm wildly different from the next, you know, the next person.

Julian Hearn

If you are your own customer, then you will use your own product. And if it pisses you off, then you can fix it.

Julian Hearn

I think somebody said it quite wisely that once you bought one, you get, you get used to anything. So that's the new norm for you. So then you, you have to then, where'd you go? Then you go to more expensive car, new, more expensive car. What, what do you do at some point?

Julian Hearn

I think it's illogical to make a commitment to somebody for something that you're saying, you know, through thick and thin forevermore, but you don't know how that person's going to change.

Julian Hearn

It's a life or death when the early days of a business, you know, if you, if something's not done today, the business could fail tomorrow. So in the early days you do have to commit, you do have to say, suck it up and go.

Julian Hearn
45 million
Huel's projected revenue in their fourth year of business
37
Julian Hearn's age when starting first business when he started his first affiliate marketing company
3 months
Time to earn more than full-time job in first business after starting his affiliate marketing company
3 years
Time until first business was sold after starting his affiliate marketing company
40 years old
Julian Hearn's age when selling first business after selling his affiliate marketing company
21% down to 11%
Body fat percentage reduction Julian Hearn's personal result after three months of weighing all food
12 months
Huel's product shelf life for the powdered product
30%
Food waste percentage of food is thrown away due to bruising or expired shelf life
18 months
Duration of intense work in early business days Julian Hearn worked seven days a week for the first 18 months of Huel
3 years
Time Julian didn't pay himself in the early stages of Huel