We caught up with the brilliant and insightful Megan McClain a few weeks ago and have shared our conversation below.

Hi Megan , thanks for joining us today. What do you think it takes to be successful?

I think the vast majority of people look at someone who is massively successful and think it was easy for that person.

“She were born with artistic talent.”

“He was able to sing from a young age”

“They like going to the gym so of course they look amazing!”

But that majority of people don’t realize how much hard work is required for success, even if you’re born with some sort of predisposition. Late nights, early mornings, sacrificed time with family, etc. And for years! Michael Phelps was obviously born with a body type that is ideal for swimming. And he STILL had to train for hours a day year after year to become massively successful.

People succumb to all the excuses for why they can’t do something or why they can’t be successful. But truly successful people rise above the excuses and do the work that’s required to get the results. They don’t just work hard, they work hard ENOUGH. They don’t just show up, go through the motions, and expect to be rewarded. They strive, they break, they progress.

There are certainly people, especially in the viral internet age, who are an overnight sensation and the success truly was easy.

But I’m not one of those people and I don’t want to depend on random luck for my own success. So I guess I’ll keep working hard.

Megan , love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?

My name is Megan McClain and I own The Chattanooga Cookie in Chattanooga, Tennessee. My sister is an at-home baker and had developed a few cookie recipes that always stunned at parties. My husband and I, who met on the corporate ladder of a dessert franchise, knew we could make a brand with those cookies. We worked for about two years to develop the starting recipes, find our location, build it out, and finally open. July 30th, 2023 was our first day of business!

Chattanooga, especially at our location on the Northshore, has limited dessert options. Most bakeries in the area have cookies, but they’re always an afterthought…even though EVERYONE loves a good cookie! With one national cookie franchise in town, we knew could be do better and bake better. So we did! We have classics with a twist, like Three Chip Chocolate Chip and Brown Butter Snickerdoodle. We also have fun, unique flavor combinations like Peanut Butter White Chocolate (a fan favorite). We have six staple flavors for people to obsess over any time, but we also rotate two flavors every month to match the vibe of the season (think Pumpkin Pie in September, S’mores in October, and Chocolate-Covered Cherry in February). And the best part? Free samples everyday!

What am I most proud of? Honestly, just the fact that we did it. I remember telling a few friends and family we were going to open up a cookie bakery and it was a great response. A few months later, when I started talking about funding, business plans, etc., those same people said, “Oh! You’re really going to do it??” I think that shows how often people just talk without executing. I’m proud that we didn’t listen to all the doubt and excuses and that we went for it!

Can you open up about how you funded your business?

We got our funding through the grueling Small Business Association (SBA) funding process. Even with a very strong financial backing, we still had to essentially give them our firstborn to make everything go through. We got our loan in early Fall of 2022 when interest rates were at their lowest in decades. So our adjustable interest rate wasn’t overly concerning.

By the time construction was ready to start six months later, everything had changed. Supply chain bottlenecks were causing skyrocketing material costs. Plumbing that would have normally cost us $15,ooo was now being quoted at $50,000. And interest rates were steadily climbing.

Even after retooling our budget and cutting as much as we could, we quickly ran out funding before we were even halfway done with construction. Luckily, the SBA had just increased the limit on our loan product by another $100,000 so we were able to essentially take out a second loan to get everything finished up.

But The Fed kept raising interest rates! We were eventually paying $4,000 every month in interest alone and it wasn’t sustainable. We decided to take out a Home Equity Line of Credit on our house to pay off the SBA, save thousands of dollars every month in excess interest, and regain full control of our business.

What’s been the most effective strategy for growing your clientele?

We’ve developed a saying in our company: Cookies always convert.

We operated a pop-up at a local mall for about two months while our construction was finishing up. At first it was hard to get anyone to stop by. But after we began putting out free samples, we started really making some sales. We took that lesson and extended it to a general marketing plan:
-We continue to offer free samples at the store! We get feedback all the time about how much people love to “try before they buy”
-We’ve hosted two Free Cookie Friday events where we give out a free chocolate chip cookie to anyone who walks in the store. Eighty percent of people who come for the free cookie always buy something else while they’re in the store.
-We donate cookies to as many charity functions as possible. Silent auction? Sure, here’s some cookies. High-end gala? Yea, we’ll give you 300 cookies. You need student gifts at school to encourage the kids? Great, here are 50 Free Cookie Coupons. Because cookie convert, we know that, after people try the cookies, they WILL be back!

Contact Info:

• Website: www.thechattanoogacookie.com
• Instagram: instagram.com/thechattanoogacookie
• Facebook: Facebook.com/thechattanoogacookie
• Yelp: https://www.yelp.com/biz/the-chattanooga-cookie-no-title
• Other: https://www.tiktok.com/@thechattanoogacookie