The Gen-Z duo took a risk and started a pasta sauce brand that generates $1 million in monthly revenue.

According to Troy Bonde and Winston Alfieri, their success wouldn't have been possible if they had been smarter.

In 2020, the pair who launched Sauz, a nationally distributed jarred pasta sauce, took an unconventional approach to starting their business by sending $9,000 to an unknown person in China via WhatsApp.

During the Covid pandemic, USC students Bonde and Alfieri were sent home and saw a business opportunity while staying at home.

"Bonde tells CNBC Make It that they sat down together and contemplated how to solve the problem of speeding up the process of returning to a classroom with 200 students who use thermometer guns, sanitize their hands, and hand out masks."

They discovered that a medical manufacturer in China was already producing a device that dispenses sanitizer and takes your temperature at the same time after reaching out to them with their idea for such a device.

Soon, Bonde and Alfieri received a purchase order for nearly $20,000 worth of devices after cold emailing a local California school district to pitch and demo their product. Meanwhile, the college students borrowed $9,000 from their parents to send to their Chinese manufacturer.

While Bonde views the decision as "the beauty of being naïve as an early stage founder," Alfieri sees it as "the scariest moment of our lives."

"Bonde states that he would never wire nine grand to a manufacturer in China without first speaking to them, but they did it and two pallets arrived at his parents' front door a week and a half later."

NextPace Ventures rapidly expanded and secured major clients, including Best Western.

"Bonde describes his business as the craziest in the world, with no marketing expenses, employees, or accounting department. There was no formality or budget, and they experienced six months of rapid growth. However, after three months of scaling, revenues began to decline significantly."

Bonde and Alfieri searched their pantry for their next venture.

A Sauz is born

During their time at NextPace Ventures, the duo spent the majority of their nights sleeping in Alfieri's father's office. To sustain their long hours of cold emailing potential clients, they would prepare the traditional college student dish of pasta with jarred sauce.

The duo observed that brands like Olipop and Poppi were gaining popularity in the beverage aisle due to their vibrant packaging, while they felt that the pasta sauce aisle lacked the same level of energy.

"Bonde explains that pasta had the largest addressable market and opportunity, making it the lowest hanging fruit. He adds that they enjoyed it and knew it would be fun to pursue."

They decided to use the profit from their first venture to start the brand that would become Sauz.

"Bonde reveals that they likely invested the entire earnings from their business, which amounted to $150,000, into Sauz. They were completely willing to take risks."

Alfieri sold his Ford truck and Bonde parted with his Mazda Miata to stack additional cash.

Their parents were thrilled about their sons getting private school degrees and going into conventional careers. However, breaking the news to their families that they wouldn't be following that plan wasn't easy.

Bonde recalls the craziest conversation he ever had with his family, which was about telling them that he and his siblings planned to make a living by selling pasta sauce.

Despite the lack of support from even his friends, he claims that he knew people were laughing at him behind his back.

"Our buddy, who is now an investor in the company, told us that he thought we were foolish for starting this venture," Alfieri said.

They invested heavily in a food scientist to create unique sauces and a marketing and design agency to design eye-catching packaging to differentiate themselves from competitors.

Alfieri and Bonde decided to take a chance on selecting flavors for the pasta sauce. The aisle was packed with various options, including basil marinaras, vodkas, and creamy alfredos.

Perhaps shoppers would appreciate the taste of Mike's Hot Honey in their pasta sauce.

"Bonde says, "We wanted to rely on our instincts. If I conducted a survey of 1,000 pasta sauce shoppers, I believe none of them would have chosen hot honey marinara. They wouldn't have recognized it as a popular option because they hadn't tried it before.""

Erewhon did not respond to their product pitch, despite their confidence in the excitement of their first two flavors, Hot Honey Marinara and Summer Lemon Marinara.

Bonde and Alfieri were surprised when an Erewhon buyer requested samples of their consumer packaged goods brand, which they described as "the place to see and be seen." Within two weeks, they were authorized for sale in the store.

There was just one problem: they didn't have any product.

"We had sent samples that had been cooked in our R&D facility. We were not even ready to produce," Bonde says. "It probably took eight months or a year between when we were approved for Erewhon and when we actually launched."

"Alfieri reveals that securing tomatoes was a challenging task due to the COVID pandemic. Despite other conglomerate brands having been contracting these tomatoes for years, the company was only trying to obtain a small portion to make 4,000 jars."

The brand, founded by two 25- and 24-year-olds, officially launched in Erewhon in July 2023. It started expanding to more retailers in January 2024, eventually landing in Whole Foods in May. In July, the brand debuted at Target, creating a national footprint.

Sauz's flavor lineup now includes Creamy Calabrian Vodka and Wild Rosemary Marinara. The brand, which has gained popularity through entertaining posts on TikTok and Instagram, generates nearly $1 million in monthly sales from jars that typically retail between $8 to $10, according to reviewed documents.

Although they no longer sell thermometers to school districts, Alfieri and Bonde are thankful for their brief experience in selling medical devices.

""There really is no Sauz without that last business," Bonde says."

Earn more money at work by taking CNBC's online course on negotiating a higher salary. Expert instructors will teach you the necessary skills to increase your paycheck, including how to prepare, build confidence, communicate effectively, and craft a counteroffer. Start now and use the coupon code EARLYBIRD for a 50% discount through November 26, 2024.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.