Jakarta, CNBC Indonesia – Every entrepreneur definitely wants his company to make abundant profits. Of course, each method is different.

However, recently a coconut water entrepreneur in the United States, Michael Kirban, revealed the secret for entrepreneurs to make a profit. It should be noted that Kirban has just succeeded in bringing his company, Vita Coco, to its highest profit after 21 years of existence, reaching US$ 1.5 billion or Rp. 23 trillion.

To CNBC Make ItKirban explained that the way to achieve such a large profit is very simple, namely don't be afraid to compete and continue to accept challenges.

“Give me tough competition. I will be challenged to beat my competitors,” said Kirban, quoted on Tuesday (19/12/2023).

During his 21 years in business, Kirban was not afraid to face competitors. In his case, he and Vita Coco have an eternal enemy, namely Zico, who both sell packaged coconut water.

Since their inception in 2004, the two have begun to engage in fierce competition. Both Vita Coco and Zico provide discount prices, carry out massive advertising, and even refuse to collaborate with shops that sell competing products. In fact, Kirban often chases Zico so he can sell the product first.

Until finally the peak of competition occurred in 2009. The largest beverage producer in the world, Coca Cola, acquired Zico. This acquisition then made Zico even bigger.

In this condition, Kirban was shocked and quite afraid. But that fear is a big motivation. Kirban and Vita Coco did not dampen their spirits at all. They are even more determined to beat Zico back. For Kirban, competition actually makes him have great motivation which can improve his performance. He thought hard about how to beat his competitors.

“If I think about every obstacle I've encountered in business, that's what always keeps me going. There's no way I'm going to give up and we're going to prove everyone wrong,” said Kirban.

Over time, Kirban continued to improve the company. He collaborates with investors to expand the business. At the same time, Zico experienced a setback. When Zico's business slowed down, Vita Coco, who had improved, immediately stepped on the gas.

In 2021, Vita Coco conducted an IPO and is now successful in controlling almost 50% of the packaged coconut water market in the United States. Meanwhile, Zico is increasingly experiencing setbacks. In fact, Zico's boss said collaborating with Cola-Cola was a mistake and regretted having done that.

[Gambas:Video CNBC]

(mfa/mfa)