This Side Hustle Spotlight Q&A feature. Achal Patel and Russell Gong, longtime friends and founders of Cabinet healthwhich offers over-the-counter medications and supplements in reusable glass bottles.
Image credit: Courtesy of Cabinet Health. Achal Patel, left; Russell Gong, right.
What was your day job when you started? side hustle?
Patel: I first met Russ when we were working at a large consulting firm, and we bonded over a shared vision to create a mission-driven company that integrated our backgrounds in healthcare and sustainability. Years later, we hatched the idea to create the world's first sustainable healthcare company, Cabinet Health, while I continued to work in consulting and Russ was in infantry officer school learning combat tactics. We both had hectic day jobs, but we built the cabinet while we were off on nights and weekends.
When did you start your side hustle and where did you find the inspiration for it?
Gong: We started the Health Cabinet initially as small children Business on Amazon that scaled. Achal was the original brainchild of the idea, finding a white space opportunity to innovate in the healthcare market. Thanks to childhood summers spent in his grandfather's drug factory, he discovered that before us was a scalable advantage of quality drug production. While I was in the military, we thought about how we could inspire a new generation of healthcare that innovated the traditional packaging and supply chain model to be more sustainable.
What were some of the first steps you took to get your hustle off the ground?
Patel: The Health Cabinet was with boots in the beginning. We brought a few high-quality products to market to begin with, cut out the middleman, and sold directly to consumers online. Taking that initial step to validate our proof of concept helped us get our initial investment in the door, but more importantly, it gave us valuable insight into what our customers and the planet need to really get this right. These initial lessons allowed us to better understand how to build the foundation of the company and helped shape our company values and vision, as well as our product roadmap. After a quick positive signal from our online sales, we invested every penny we had back into building the future vision of the business and into R&D to develop sustainable healthcare packaging and product offerings. From there – and with the support of our friends, family and colleagues – we built the Health Cabinet into what it is today.
What were some of the biggest challenges you faced during your build? side hustleand how did you navigate them?
Gong: The biggest challenge of side hustle it's the period of uncertainty before you make it your “full hustle.” Side hustles tend to catch most of us by surprise if they disrupt the career paths we originally set out for ourselves.
For example, I know that starting a sustainable healthcare company was never on my “life plan” list. The novelty of such a different career trajectory can be daunting, as it is completely uncharted territory. I had a lot of questions running through my head at the time. What to do with all my past experiences? Is this the next step I should take? If I dive in headfirst, what does that mean for my future career path?
One way to overcome uncertainty was by adopting a “lifetime portfolio” mentality rather than a “linear career path” mind set. Instead of trying to find the next step in my career, I would think of building my startup as another item to add to my resume of professional experience. This shift in mindset assured me that I wasn't quitting or quitting my job, but instead reallocating my time to building another career path.
How long did it take you to see consistent monthly income? How much she hustled him to the sidern?
Patel: We saw the startup take off relatively early in the business and, within the first year, grow to over $1.5 million in online sales. While it's not the most traditionally opportune time to launch a company, we actually saw a significant increase in revenue from Covid and an increased focus on health and wellness with consumers. Since then, we have grown significantly and are projecting between $20-30 million in annual sales by 2024.
What were some of the steps you took? side hustle for full time business?
Gong: The first step was forming a partnership with my co-founder and best friend. Achal and I officially started the business when we decided to build something more than just an online storefront. It was a very conscious decision tied together through shared values and the best professional and personal decision I have ever made. We started the partnership on the strongest possible footing.
From there, we began to research more about the problem we were ultimately solving and the current market landscape. We traveled the world to understand it better market opportunity and learn the ins and outs and broad complexities of the medical supply chain. It was this first-hand experience that strengthened our conviction against the use of single-use plastics in medicine before we built the supporting infrastructure for our sustainable healthcare operations.
And finally, we invested in and developed packaging to bring high-quality over-the-counter medicines to market. This involved a very long research and development process, including rigorous safety testing, to design truly innovative and sustainable packaging for our medicines. Recognizing what happens WITHIN the bottle is of great importance; we've sourced high-quality, FDA-approved medicines and partnered with an independent, third-party laboratory to group-test all of our peace of mind cabinet medicines. This additional layer of batch-level testing goes above and beyond FDA requirements, but allows us to assure our customers that our medicines are certified free of gluten, toxins and known carcinogens.
What does growth and revenue look like today?
Patel: We started the company in 2018 with a vision to reimagine the way the industry packages and fills any kind of drug and to completely eliminate single-use plastics from pharmaceuticals. In that time, we've been so encouraged by the continued growth of the brand, including everything from product development and optimizations for expanding our footprint with national retail partners and of course, the revenue and sales figures speak for themselves.
In the conditions of product development, we first started with common over-the-counter medications and supplements, including things like 24-hour allergy relief and pain and fever relief. Each medicine cabinet comes in a glass bottle that's designed to be refilled (again and again) with our compostable refill bags that save you plastic waste and money in the long run. From there, we built our online pharmacy, Kabinet Rx, where we offer highly personalized care and easy transfers to our plastic-free prescriptions. Every new patient receives a personalized prescription glass bottle with refills, conveniently delivered to your door in drug-safe compostable bags made to decompose. We like to think of the Rx Cabinet as a simple and sustainable exchange from traditional amber bottles made from single-use plastic. Today, we offer over 500 prescription medications, with plans to expand these offerings to additional items such as liquid medications and birth control.
In terms of footprint, last December the Cabinet launched in Target stores (more than 500) nationwide. As the first Target Zero-endorsed medicine brand, the launch marked an exciting step for both the brand and the industry at large, expanding the reach of sustainable and compostable medicine options into millions of homes across the US.
In terms of growth, Cabinet has served over one million customers to date, with annual sales averaging $20-30 million per year.
What do you enjoy most about running this business?
Gong: Team, team, Team. I see our cabinet team in many different ways. First, it is patients who are central to our mission and cause, serving not only as customers but also as external team members who help us build and shape our business. They've actually inspired some of our product roadmap and go-to-market strategy to date. We always keep our patient community at the core of everything we do and are dedicated to serving their needs.
Second, our in-house cabinet team members work tirelessly to make sustainable healthcare solutions a no-brainer in the hearts and minds of consumers. Finally, our business partners such as McKesson, The aim and CVS truly believe in the future we are building to lead the next generation of sustainable healthcare. Everyone works together as a team to help solve the problem. It's an honor to run a business that helps bring such incredible like-minded people together around a cause.
What is your advice to others hoping to start successful side hustles or their own full-time businesses?
Patel: Above all, stay resilient and dedicated. You have to jump in with both feet if you're going to be successful, so make sure you have a lot of conviction in what you're doing. Don't be afraid of failure. Building a successful business takes time and effort, and the business landscape is constantly evolving, so don't be discouraged by obstacles or challenges along the way. If you stay persistent, these lessons will help you shape your vision and help you grow incrementally as you gain traction and resources.
Gong: Start small, but start. Don't wait for the perfect moment or conditions to roll in. However, there are many things out of your control. Start with what you have and take a little, action steps towards your goals. Building momentum is key, and progress, however small, is still progress. Let passion and purpose be your guide and help you identify what truly motivates and excites you. This, combined with a customer-centric approach, will give your business real meaning and resonance with consumers.