
You know Sammy Hagar, right? In the early 70's he played guitar for the band "Montrose", then launched out in solo work before being picked to replace David Lee Roth in the band "Van Halen".
I've skipped over a lot of details because it is here that the story gets interesting. So pour yourself a shot of tequila and pay attention here!
After joining "Van Halen", Sammy talked other members of the band into buying a a little cantina in Cabo San Lucas. He was looking for a place where he could relax, eat, drink tequila, and play guitar whenever he wanted.
The band's $400,000 business venture was a financial flop, losing about $40,000 per year those first couple of years. In 1994, Sammy bought out the rest and continued to operate Cabo Wabo,which has since become a multi-million dollar business enterprise that includes two cantinas (the second is in Tahoe) and a line of premium tequila.
In May of last year Sammy sold 80% of the business to Gruppo Campari for a whopping $80 million!
Now, amigos, there are several lessons to be learned from this. I'll give you a second to pour yourself another shot of tequila before I continue.
1) Most of Cabo Wabo's success came about simply due to being in the right place at the right time. During the years Cabo Wabo was struggling to survive, Cabo San Lucas was being discovered by the tourism industry. Cruise lines were beginning to dock there, opening up a whole new source of revenue. And because of name recognition, it was fairly simple to connect the dots from the docks to the cantina.
2) Again, Sammy was at the right place at the right time. Pretentious American drinkers were starting to pony up as much as $120 for a bottle of premium tequila. In 2004, there were only 13 premium tequilas on store shelves; by 2006 there were 40 labels! Sammy had been drinking his own premium stuff out of ceramic jugs and wash tubs for years by then. He simply saw the trend coming, got out ahead of it, and started bottling and distributing Cabo Wabo Tequila.
3) Finally, Sammy was at the right place at the right time. (Have I mentioned that already?) He didn't start out to become stinkin' rich. He just wanted a place to eat, drink and play. When others gave up, he continued his vision despite the financial losses. It was what he wanted to do and he did it.
Now Sammy has a place to eat, drink and play -- and $80 million to play with!
Why do I recount this here? Because I can't preach about it from the pulpit! But the implications are something our churches need to hear, something our pastors need to hear.
Pour yourself another shot of tequila and reflect on the story of Cabo Wabo. I'll write my reflections next week. Stay tuned...