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Hear the stories, learn the proven methods, and accelerate your growth and future through entrepreneurship. Welcome to The Foundr Podcast with Nathan Chan. About the show: For over a decade, The Foundr Podcast with Nathan Chan has been a leading entrepreneurship podcast for open-book conversations with, by, and for founders. Whether you're starting, building, or dreaming about your business, The Foundr Podcast is where you can access experienced founders who've been in your shoes to learn their proven methods, lessons from failure, and inspirational stories. Past guests include Emma Grede, Mark Cuban, Neil Patel, Kendra Scott, Alex Hormozi, Trinny Woodall, Tim Ferriss, Sophia Amoruso, Simon Sinek, Tony Robbins, Amy Porterfield, Ed Mylett, Michelle Zatlyn, Reid Hoffman, Scooter Braun, Dany Garcia, Marc Lore, Ariana Huffington, Pat Flynn, Lewis Howes, Jordan Harbinger, and many more. About the host: Nathan Chan is the CEO of Foundr and the creator of The Foundr Podcast. Chan literally started from knowing nothing. He was just an average guy working in a 9-5 job he utterly hated. He knew nothing about entrepreneurship, nothing about startups, nothing about marketing, and nothing about online or how to build a business. In the past decade, Chan's built Foundr into a global leader in entrepreneurial education, helping tens of thousands of aspiring entrepreneurs start and scale their businesses. Need help with your business? Visit foundr.com/foundrplustrial to join a global community of entrepreneurs, gain access to proven strategies, and fast-track your business growth confidently.
- 774 - 727: We Took on the Cookware Industry with One Pan - and Built a $100M+ Brand
Shiza Shahid went from co-founding the Malala Fund - a global girls' education nonprofit - to launching a direct-to-consumer cookware brand built around a single pan. The idea was radical: take the 16 pieces of cookware a legacy brand would sell you, find where they intersect, and design one beautiful, nontoxic product that does it all. She and her husband spent two years designing from scratch, went through 30 iterations, bootstrapped $100-200K of their own savings, and got rejected by around 100 investors. When Our Place finally launched the Always Pan in 2019, it was quiet - until it went viral, sold out more than 30 times, and landed in the kitchens of Oprah, Gwyneth Paltrow, Selena Gomez and David Beckham. The company did $50 million in revenue in its first year. In this interview, Shiza breaks down why obsessing over product beats leaning on marketing, the first-order profitability discipline that won investors over after 100 rejections, and how culture-led storytelling outperformed the paid-ads playbook. What you'll learn in this interview: • Why she bet one multifunctional pan could disrupt an industry built on selling 16-piece sets • The two-year, 30-iteration design process - and why they designed from scratch instead of white-labelling • How they bootstrapped on $100-200K and turned 100 investor rejections into financial discipline • Why the Always Pan went viral: the first cookware beautiful enough to leave on the stove, not hide in a cupboard • How first-order profitability - not cash-to-LTV promises - became their whole investor pitch • The 30-40% repeat purchase rate in a category where 3-4% is normal - and the product ecosystem behind it • Why authentic, culture-led storytelling beat the paid performance playbook everyone else was running • How designing collections around Lunar New Year, Diwali and Persian New Year made communities feel seen • Why relying on marketing over product is "a ticking time bomb" - and the case for reinventing your hero product again and again • Why mission built into the business model scales with growth, instead of being an annual line-item debate If you're building a DTC or physical-product brand, trying to achieve genuine product-market fit, or wrestling with whether product or marketing should carry your growth, this conversation will fundamentally change how you think about differentiation, discipline, and building a brand that lasts. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH SHIZA SHADID Instagram → https://www.instagram.com/shiza/ LinkedIn → https://www.linkedin.com/in/shizashahid FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 12 Nov 2026 - 773 - 726: Kristi, Eric & Alex Wrote Off $230K of Stock to Save Their Brand - It’s Now Done $4M in 5 Years
Drop Dead Hair is run by three people: Christy, a hairstylist of over a decade; her husband Eric, who trained in manufacturing; and Eric's identical twin Alex, a designer. They'd been building businesses together since they were kids - mowing lawns, selling oranges, running photography and design agencies - and when Christy kept coming home frustrated that no extension brand was actually made for stylists, they decided to build one themselves. It took nearly five years to get off the ground. Then, a year after launching, they made the hardest call of all: scrapping $230,000 of their first product entirely because it wasn't good enough. Today they're on track to do $2.75 million in annual sales. In this episode, the three of them get honest about what it really takes to build a quality-first B2B brand: the brutal year of sleepless nights and customer complaints, the leap of faith to a brand-new factory and product, and the unconventional affiliate engine that grew the business for years before they ever touched an ad. What you'll learn in this interview: How three complementary skill sets - hairstyling, manufacturing, and design - let them run nearly every function in-house without hiring, from tech packs to photography to the website The product-development approach that had factories telling them "no one has ever asked us these questions" - obsessing over raw materials, shine, strength, and tiny details like how often shears get sharpened in finishing The hard truth about small-batch testing: why a great sample is a completely different thing from mass production, and how volume exposed a whole new slew of problems they couldn't see The gut-wrenching decision to write off $230,000 of their first product after about a year - selling through only ~$100K of it, marking the rest a loss, and finding new capital to start over rather than tarnish the brand Why they moved to a new factory for version 2.0, and the two things that drove the whole rebuild: quality and batch-to-batch consistency, critical when your reorder rate is high and you're working with human hair The real growth curve: ~$112K in their first full year, then roughly doubling every single year - $600K, $1.3M, and a projected $2.75M - hitting their 2x target three years running The B2B marketing engine most brands overlook: a group of 25 hairstylist affiliates ("Drop Dead Elite Artists") who tag the brand and live in their bios, delivering a rock-steady seven salon registrations a day for years with zero ad spend Why stylist-to-stylist trust beats conventional influencer marketing in their world - and how they made their own affiliates the stars of every ad, so the content reads as real UGC rather than brand messaging The first 30 days of running ads: ~$20K spent to unlock ~$90K in new revenue and around 1,000 new registrations - and why their sky-high retention and second-purchase rates are the real "secret sauce" The Black Friday playbook they run all month long - giving salons a sale playbook to run in their own chairs, plus limited-edition incentives (yes, including a tote bag) to drive repeat purchases within the same promo If you're building in B2B, working with a co-founder or two, or staring down a quality problem that would be easier to ignore than fix, this episode is for you. Drop Dead Hair's story is a grounded reminder that choosing the product over the short-term revenue, growing only as fast as your quality and cashflow allow, and building genuine trust with the people who actually recommend you can compound into something formidable. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH DROP DEAD HAIR Instagram → https://www.instagram.com/dropdeadextensions/ Website → https://dropdeadextensions.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Tue, 10 Nov 2026 - 772 - 725: (Solo) The 5 Traits of Leaders who are Worth 20 Average Employees
Most founders are obsessed with hiring A players, and they should be. But after doing this for over a decade, I have learned the biggest unlock is not just hiring A players. It is identifying the people with leadership potential, often already on your team, and doing everything you can to elevate them so they multiply results across your company. Here is the distinction that took me too long to learn: an A player is not just someone with the best technical skill. They produce exceptional results, they raise the standard of everyone around them, and, the one everyone misses, they take ownership of problems that are not in their job description. In this episode, I break down what an A player actually is, the five traits of a leader who multiplies, and how to spot and develop these people before you leave your biggest growth lever untouched. Here’s what you’ll take away: Why B players focus on their role and A players focus on the outcome, and why the best ones are often the quiet, understated people in the room The five traits of a leader who multiplies: pulled toward responsibility, makes others better, radically honest upward, fast with standards, and thinks like an owner The simple test: what happens to a team when one person goes on holiday tells you whether they are a bottleneck or a leader Why you have to create the conditions for leaders to emerge, by handing real stakes and real autonomy, not a test Why most founders waste 80% of their management energy on their worst performers instead of investing in their best The Larry Ellison story about rebuilding his leadership team at every milestone, and what it reveals about where to look when growth stalls If you want to scale, especially as a solo founder, this episode will show you how to find and develop the leaders who can genuinely change the trajectory of your business. If you’re loving this solo series, I’d love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 09 Nov 2026 - 771 - 724: I Started a $1B Company on My Dad’s Credit Card at 15 | GT Dave
GT Dave was a 15-year-old being bullied and failing every class when his mum was diagnosed with breast cancer and given 12 months to live. The fermented tea his parents drank - kombucha - played a role in her recovery, and GT became obsessed with sharing it. He reworked the recipe on his kitchen bench, designed his first label on his dad’s IBM computer, and funded the whole thing on his father’s Amex for just six months before it became profitable. Twenty-five years later, GT’s Living Foods commercialised and essentially created the entire kombucha category, holds over 40% market share, and has made him a billionaire - and he still owns 100% of it, having turned down every acquisition offer and every dollar of outside funding. In this interview, GT breaks down why he spent the first ten years going store by store instead of chasing national chains, how in-store sampling and his family’s story built the category from nothing, and why he believes profit and passion struggle to coexist. What you’ll learn in this interview: How his mum’s cancer recovery turned a bullied, failing teenager into a category founder Why he funded the business on his dad’s Amex for only six months before going profitable The slow-and-steady distribution strategy: why he stayed in a handful of LA stores for years How in-store sampling and storytelling - not ads or slogans - built an entirely new category Why he deliberately took ten years to reach national distribution, and how rushing can destroy you The 2010 alcohol controversy that wiped the category off shelves - and why only his brand came back Why he’s turned down every acquisition offer and kept 100% ownership for 25 years The dark side of success: the litigation, the $400K legal bill, and being a target for being wealthy Why he thinks profit and passion struggle to coexist - and how he keeps recalibrating to his path His advice for founders: get proof of concept, keep it slow, and know exactly why you’re doing it If you’re building a brand in a category that doesn’t exist yet, wrestling with whether to raise money or stay in control, or trying to grow without losing what made you start, this conversation will fundamentally change how you think about patience, purpose, and building something that lasts. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH GT DAVE Instagram → https://www.instagram.com/gtdave3/ Website → https://gtslivingfoods.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 05 Nov 2026 - 770 - 723: (Solo) Time or Money: The Framework That Changed How I Scale
A long time ago, Neil Patel called me out of the blue on Skype after I interviewed him, and the lesson from that conversation completely changed how I think about growing a business. It is simple, it sounds obvious, but almost no founder I talk to actually applies it. Here is the idea: as a founder, you have two resources, time and money, and at any given moment you almost never have both. The founders who scale fastest are not the ones with the best ideas or the best product. They are the ones who figured out which resource they actually have, and went all in on it at the right stage. In this episode, I break down the time versus money framework Neil taught me, the two stages every founder moves through, and the two expensive mistakes I see founders make with both. Here’s what you’ll take away: Why Neil could grow on Instagram with sweat equity early in his career, then chose to write a check for it later, same person, different stage, different strategy Stage one: why your time is effectively free when there is no opportunity cost yet, and how to use it to build dangerous skill Stage two: why doing everything yourself once you have revenue is not hustle, it is a bad allocation of resources Mistake one: throwing money at every problem, like hiring a web designer for a Shopify store when templates and AI will do the job Mistake two: having the money but still editing your own reels at midnight when your time is worth far more elsewhere The simple math: if your time is worth $500 an hour and you spend it on a $50 task, you are losing $450 every hour you do it yourself If you are unsure whether to solve a problem with time or money right now, this episode will help you honestly assess which resource you actually have, and get strategic about where to spend it. If you’re loving this solo series, I’d love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 02 Nov 2026 - 769 - 722: How a $700 Pair of Glasses Led to a $2.89B Company | Warby Parker
Warby Parker started with a simple, infuriating question: why did a pair of glasses cost more than an iPhone? Neil Blumenthal and Dave Gilboa met in the first week of business school, pooled $120,000 of their life savings with their two co-founders, and spent a year and a half building a brand before selling a single pair. When they launched in Vogue and GQ in February 2010, they sold out of their entire inventory, built a waitlist of 20,000 customers, and hit their first-year sales target in three weeks. They didn’t spend a penny on customer acquisition for three years. Today Warby Parker has raised around $300 million, is a public company, and is one of the brands that defined the entire direct-to-consumer era. In this interview, the co-founders and co-CEOs of Warby Parker break down how they built a fashion brand from first principles, why they obsessed over the name for six months before anything else, and the discipline of staying focused while everyone told them to expand. What you’ll learn in this interview: Why a lost pair of glasses and a $700 bill became the insight for a category-defining brand The brand-first approach: why they spent six months and 2,000 options getting the name right How $120,000 of founder savings had to cover product, website, and PR - and why they ran out The Vogue and GQ launch that sold out their entire inventory and built a 20,000-person waitlist Why they spent zero on customer acquisition for three years - and how PR and word of mouth carried them The de-risking playbook: free shipping, free returns, and the home try-on that got glasses on faces Why being full-time students made it easier to take the risk than quitting a high-paying job How they hit their first-year target in three weeks - and why constraints forced creativity on inventory The retail accident: how selling glasses out of their own office led to a nationwide store rollout Why “strategy is what you say no to” - and the shiny-coin advice that kept them focused If you’re building a DTC or physical-product brand, trying to stand out in a crowded market, or wrestling with whether to raise money or stay lean, this conversation will fundamentally change how you think about brand, focus, and solving a real problem from first principles. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH WARBY PARKER Instagram → https://www.instagram.com/warbyparker/ Website → https://www.warbyparker.com/ Dave's LinkedIn → https://www.linkedin.com/in/davegilboa Neil's LinkedIn → https://www.linkedin.com/in/nblumenthal FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 29 Oct 2026 - 768 - 721: Raquel Does $300K/Month - and Says it’s the Least Work She’s Ever Done
Raquel Vasseur never set out to build an empire - she set out to be free. After two retail stores in her early 20s that took out loans and tied her down, she swore off debt, physical storefronts, and anyone else's definition of success. When she couldn't find the right clothes for her baby daughter, she started Luna + Luca in late 2020 with $3,000, selling other brands wholesale before launching her own. Today she runs a $3-4 million a year children's clothing brand almost entirely by herself - one part-time helper, a few contractors, and a stack of AI workflows - while raising four kids. She jokes the brand is her "fourth baby." In this episode, Raquel gets refreshingly honest about the unglamorous path to a sustainable empire: two years of not paying herself, the retail "failure" that taught her everything, and why she's deliberately chosen not to chase the bigger-revenue brands she sees around her. What you'll learn in this interview: Why she started Luna + Luca with just $3,000 selling other brands wholesale - and how she realised within a year that the margins would never get her where she wanted, so she built her own label The retail-store "failure" in her early 20s that shaped everything: taking out loans, believing she needed all the right flooring and software before opening, and why she flipped that entirely the second time around Her self-imposed constraints that became superpowers - no loans, no debt, no paid apps, building and running her own website for years, treating "how little can I do this on?" as a game The brutal honesty about timelines: roughly two years of putting every dollar back in before she paid herself a cent, and why she only started paying herself around $30K/month The "pay yourself first" philosophy that changed everything - and why most founders get it backwards How she managed it all as a mum of young kids: shipping packages from 8pm to 1am, tag-teaming with her husband, and accepting (not loving) that balance isn't really possible The year her revenue stayed flat - when the iOS privacy changes wrecked ads, so she turned ads off entirely for 12 months - and how she still grew a minimum of 60% a year otherwise The single biggest mindset unlock from Founder Operators: seeing inside other founders' ad accounts and realising every business is different - and choosing to stay grounded in her own goals instead of getting "stars in her eyes" The specific ad changes that drove her biggest-ever profit month: moving from CBO to ABO to control which SKUs get spend, splitting catalog ads by collection, and scaling from $600 to over $3,000/day How she uses Claude and a contractor-built automation system to run lean - analysing Shopify and Klaviyo data on command, and fully automating inbound creator requests from DM to Shopify order without touching it If you're a solo founder - especially a parent - who feels like you have to choose between scale and sanity, this episode will change how you think about what "winning" actually looks like. Raquel's story is proof that slow, intentional, debt-free building on your own terms can quietly outperform the flashier path - and that the goal was never the biggest business, just a free one. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH Instagram → Website → FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 28 Oct 2026 - 767 - 720: (Solo) How do You Know When It's Time to Fire Someone
At some point, every founder has to do the thing nobody trains you for and nobody really talks about: letting someone go. It is not easy, it is not fun, and I am not going to pretend otherwise. But out of all my founder friends, I am yet to meet one who said they fired someone too early. Everyone says the same thing. They dragged it on for far too long. Here is why it is so hard: it is not a business problem, it is an emotional one. You feel guilty, you sold this person the dream, and part of you believes that if they are not performing, it is your failure as a leader. But keeping someone in a role that is not working is not leadership. It is avoidance. In this episode, I share the framework I use to separate the emotion from the decision, the five signals that tell you it is time, and how to actually have the conversation with dignity. Here’s what you’ll take away: Why the real cost of keeping the wrong person is the opportunity cost, and why you always realise you should have acted months or years earlier The five signals it is time: from “managing around them” to having the same conversation three times to your A players quietly carrying the load The three strikes principle and why putting feedback in writing from the first conversation matters The three mistakes I have made myself: keeping people out of loyalty, moving them sideways instead of making the call, and waiting for the “perfect time” How to actually do it respectfully: keep it under 15 minutes, own it, talk about the role not their character, and be generous where you can Why you should never speak badly about someone after they leave, and the reframe that keeping the wrong person, not firing them, is the real failure of leadership If you have someone in mind right now, someone you keep going back and forth on, this episode will help you find the courage to make the call, be kind about it, and raise the bar for everyone who stays. If you’re loving this solo series, I’d love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 26 Oct 2026 - 766 - 719: The NEW Creator Playbook That Took Me from $80K Debt to $250K/Day | Trybe
Lukas Pakter filmed his bank account and posted it to the internet: $80,000 in debt, $100 to his name, an activewear brand quietly dying. A year and a half later he’s doing over $250,000 a day, on track for $70-80 million this year, and has turned his growth playbook into Trybe - a creator-sales platform now used by over 16,000 brands. The shift that changed everything was a single realisation: making other people money makes you more money. Instead of being the one guy filming TikTok Shop videos, he turned his best customers into an army of sellers - and built the software to run it. In this interview, Lukas breaks down the creator playbook he learned from his mentor Hudson, why he placed a single purchase order bigger than every PO in his company’s history combined, and the counterintuitive reason older creators are quietly outselling 23-year-olds. What you’ll learn in this interview: The mentor deal everyone told him to refuse: giving away 10% of his company on nothing but a handshake The core shift: why making other people money is the fastest way to make your own The creator playbook: turning your best customers into a sales army that reaches thousands at once Why he runs 8,000 unique creative angles a month - and how he blew past Meta’s ad limit The all-in PO: why he ordered more inventory in one quarter than every order in company history combined How he landed net-120 payment terms by flying out and showing his manufacturer the technology The three pillars of a monster brand: a great product, a great offer, and a great sales team Why he gives away equity and 50-100% bonuses to stop competitors poaching his team What six failed businesses since age nine taught him about real product-market fit Why older creators are outselling college kids - and the trust factor most brands are ignoring If you’re building a DTC brand, trying to crack creator-led or affiliate sales, or wrestling with how to grow fast without burning cash, this conversation will fundamentally change how you think about risk, creators, and what it actually takes to scale from near-bankrupt to nine figures. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH LUKAS PAKTER Instagram → https://www.instagram.com/lukaspakter/ Website → https://www.lukaspakter.com/ Trybe → https://jointrybe.com/ Haus → https://gohaus.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 22 Oct 2026 - 765 - 718: (Solo) Why Your Profitable Ad Account Isn't Scaling (It's Not Your Ads)
I do a lot of enrollment calls for Foundr Operators, and I keep seeing the same pattern. A founder gets on a call doing a 5 or 6x return, literally printing money, and they will not scale. They are terrified to spend more. And if I had understood the principle behind this ten years ago, I would have made tens of millions of dollars more. That is a big claim, so hear me out. Here is what is actually happening: these founders are not bad at business. They are sharp, with great products. But they are making decisions on how they feel and whether they made money on the first purchase. And the fastest growing DTC brands are often the ones losing money on that first sale, scaling aggressively, because they know their back end numbers cold. In this episode, I break down why a profitable ad account stays small, the numbers you need to know to scale with confidence, and the mindset shift that separates reckless from confident. Here's what you'll take away: • Why the real reason you are not scaling is not your ads, your algorithm, or your creative, it is that you do not trust your numbers enough to act on them • The Dan Kennedy principle that the company that can spend the most to acquire a customer wins, and what it actually means for your ad account • Why the brands doing $2M to $10M a month are happy to lose money on the front end, and how they know it comes back • How to track LTV by cohort instead of a blended average that hides everything • Why your payback period is the number that changes everything psychologically, with a simple example of a "loss" that is actually profit by day 60 • How to build a back end worth betting on, from subscriptions to Rob Ward's Quad Lock ecosystem that sold for half a billion dollars If you are sitting on a profitable ad account and not scaling, this episode will show you exactly why, and the four things to work on so you can spend with confidence instead of fear. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 19 Oct 2026 - 764 - 717: We Started Dad Gang with $750 and One Hat - and did $40M in 4 Years
Three best friends put in $250 each - $750 total - printed 100 hats in a garage, and sold out in 36 hours. No following. No ads. No business plan. Four and a half years later, Dad Gang has done over $40 million in revenue selling hats built around one idea: dads deserve better than goofy, frumpy products that make fatherhood a punchline. The craziest part? Grant, Bart and Ejay still run the entire thing with zero employees, a private Facebook group of 15,000 dads, and an equity partnership with Gary Vaynerchuk - and they're deliberately building it as a lifestyle business, not a rocket ship. In this interview, the founders of Dad Gang break down why they sold one single hat for the first eight months, how they built a fiercely loyal community by refusing to outsource DMs, and the deliberate choice to stay lean while everyone tells them to put their foot on the gas. What you'll learn in this interview: • Why two decades of failed side projects set them up to move fast when Dad Gang hit • The one-hat strategy: why they resisted new colors and SKUs for eight months to nail the brand first • How they turned a 40-day stockout into a community-building engine instead of a disaster • Why they boosted posts at $10 a day for audience growth instead of running conversion ads while sold out • The 15,000-dad private Facebook group that tells them exactly what products to make • Why they still answer every DM, email and comment themselves four and a half years in - no community manager • How staying lean with a 3PL and contractors let them each quit their jobs sooner • Why the hat became a symbol dads connect over offline - and the raw stories that fuel the brand • How the Gary Vee equity partnership came about through years of working with Vayner Sports first • Why they measure success by homes reached and impact on kids, not just revenue If you're building a DTC or community-led brand, wrestling with whether to launch more products or go deeper on one, or questioning whether you have to scale at all costs, this conversation will fundamentally change how you think about community, focus, and building a business around the life you actually want. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH DAD GANG Instagram → https://www.instagram.com/dadgang.co/ Website → https://www.dadgang.co/ Bart's Instagram → https://www.instagram.com/theszef/ Ejay's Instagram → https://www.instagram.com/ejayodonnell/ Grant's Instagram → https://www.instagram.com/geastey/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 15 Oct 2026 - 763 - 716: Ryan Spent 13 Years Without a Single Breakout Moment - Then Doubled His Whiskey Brand In 6 Months
Ryan Thompson ran a restaurant for 25 years, sold a couple of quick-serve spots, built a financial services company, and even ran a motel before he noticed the craft distillery movement taking off and decided someone in Vail, Colorado ought to start one - so it might as well be him. He went to Moonshine University in Kentucky, learned distilling from A to Z, wrote a business plan, and scraped together every dollar he could. Thirteen years later, 10th Mountain Whiskey & Spirit Company makes seven spirits, runs two tasting rooms, and donates to military nonprofits - named in honour of the historic 10th Mountain Division that helped start American skiing (and, as it happens, Nike). In this episode, Ryan is candid about the unglamorous reality of scaling a spirits brand online: the genuinely bizarre regulatory maze of shipping alcohol across state lines, why his growth has never looked like a hockey stick, and the brick-by-brick philosophy that's quietly doubled his monthly sales. What you'll learn in this interview: Why a 120-seat restaurant and a fixed-bed motel have a hard ceiling on growth - and how that revenue cap is exactly what pulled Ryan toward the uncapped potential of e-commerce How he started distilling on a tiny 13-gallon still (nicknamed Old Bessie) to keep early mistakes small and cheap, before scaling to a 500-gallon copper column still Why he launched through two tasting rooms first - getting direct, over-the-bar customer feedback for a full year before selling a single bottle online The regulatory maze most founders never see: being banned from direct-to-consumer sales entirely, the Washington D.C. licensed-liquor-store workaround, and why his online orders start in Colorado but ship from D.C. Why he can only ship directly from his distillery to two states - California and Arizona - and how a fulfilment partner (Rackhouse) handles the rest How he turned a tasting-room visitor behaviour (not wanting to check a bag with a bottle in it) into early organic online sales with no ad spend The hire that changed everything: spotting 15 years of digital agency experience on a resume submitted for a tasting-room job, and redirecting that person to run marketing instead Why his growth has always been slow and steady rather than explosive - and the "nice brick in the wall" mindset of stacking 2-4% conversion improvements instead of chasing a single game-changer The real numbers: roughly $20-25K/month before joining Founder Operators in March 2026, climbing toward a $40-50K/month average - close to double - on the back of consistent CRO work The most valuable and transferable takeaway: the confidence that the e-commerce skills he's building now could be applied to selling anything, in any industry, on any website If you're building in a highly regulated or "unsexy" category - or you're frustrated that your growth looks like a slow climb instead of a rocket ship - this episode is for you. Ryan's story is a grounded reminder that steady, compounding improvements and deep conviction in your brand's purpose can build something durable, even when every rule in your industry seems designed to slow you down. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH RYAN THOMPSON Instagram → https://www.instagram.com/10thmtnwhiskey/ Website → https://10thwhiskey.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 14 Oct 2026 - 762 - 715: (Solo) How to Stop Overcomplicating Hiring (My Biggest Mistakes)
Hiring is tough, and I am not going to pretend otherwise. But I was reflecting on this past year, and I have had a much better strike rate lately because of one basic shift. And sometimes it is the basic stuff that is easiest to forget. Here is what hit me on a recent call with a sharp young founder: every contractor on his team came from a referral. Every single one, all proven, all delivering. And when I looked back at my own best hires at Foundr, the pattern was identical. Every person who moved the needle came from a trusted source. In this episode, I break down why I now only hire referrals or people from our community, why referrals work at a level nothing else can, and how to tap your network even if you do not think you have one. Here's what you'll take away: • Why the usual hiring process, job post, 200 applications, interviews, test project, so often ends in a bad hire anyway • Why a referral is a built-in quality filter no job description or interview can replicate, because the referrer is putting their reputation on the line • The restaurant analogy that explains why one personal recommendation beats a thousand five-star reviews from strangers • Why hiring from your own community gets you people who want to be there, not people who just want a job • How to surface great names fast by asking your existing team, your masterminds, and the founders already working with talent you admire • The compounding effect: how one great referral hire opens up an entire web of proven, trusted talent If you have been burned by a bad hire or you are about to start the whole job board process again, this episode will give you a simpler rule that has genuinely improved my hiring, and remind you that the best people are almost never the ones applying. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → http://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 12 Oct 2026 - 761 - 714: From $0 to $5 BILLION - The Blueprint for Building Billion-Dollar Startups | Marc Lore
Marc Lore walked into his boss's office with a newborn at home, a huge salary, and no business idea - and quit anyway to become an entrepreneur. That instinct built one of the great modern track records in commerce. He sold diapers.com to Amazon, turned a pitch deck into a $3.3 billion Walmart acquisition in under two years, became Walmart's e-commerce CEO, bought the Minnesota Timberwolves, launched a next-gen restaurant company called Wonder, and is now building Telosa - a city from scratch for 5 million people in the desert. All from a kid who told his grandma he wanted to be a farmer because farmers "grow stuff from nothing." In this interview, Marc breaks down the conviction it takes to sell a product below cost until you win, the hiring and comp framework that let him scale companies fast, and the counterintuitive negotiating lesson behind two of his biggest deals. What you'll learn in this interview: • Why he quit a high-paying job with a newborn and no idea - and the mentor who funded him anyway • The diapers.com thesis: why selling below cost was the whole strategy, and where most founders lose their nerve • What going inside Amazon taught him - that there's no right culture, only a consistent one • How growing through Amazon's brutal 30%-off diaper war is what made them overpay for the company • The transparent comp system: same pay per level, Black-Scholes-priced options, and how it let him hire fast • Why selling to Walmart felt completely different to selling to Amazon - keys to the kingdom vs. sit in the corner • The negotiating masterclass: why knowing when NOT to negotiate landed both the Timberwolves and Wonder • Inside Wonder: 17 restaurant chains in Mercedes vans that cook and deliver at a tenth of a restaurant's CapEx • Why conversational commerce kills the search engine - and how he's skating to where the puck is going • The Telosa vision: buying 200,000 acres to test a fairer model of capitalism and a $50 billion city wealth fund If you're building a startup, wrestling with the conviction to hold your vision when it looks crazy, or just want a masterclass in thinking bigger from one of the boldest operators in commerce, this conversation will fundamentally change how you think about risk, culture, and building things that grow from nothing. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH MARC LORE Instagram → https://www.instagram.com/marclore/ LinkedIn → https://www.linkedin.com/in/marclore FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 08 Oct 2026 - 760 - 713: (Solo) The Black Friday Profit Trap and How to Avoid It This Year
We are all gearing up for Black Friday Cyber Monday, and if you have not started planning yet, you need to. Here is a story that will stop you in your tracks: a founder in our community did $1 million over Black Friday Cyber Monday a few years ago and barely broke even. Not an exaggeration. A million dollars in revenue and almost nothing to show for it. Here is the trap: you have a massive sales month and it looks incredible, but nobody models what that revenue actually cost. Peak November ad prices, your deepest discount of the year, cogs, shipping, returns, platform fees. Most founders plan the sale but never plan the profit. In this episode, I break down what actually happened last year with real data, the three clocks that are already running before Black Friday, and the exact framework we shared with our Foundr Operators members at our in-person event. Here's what you'll take away: • The three clocks running right now, attention, inventory, and shipping, and why by November the biggest decisions have already been made for you • The real numbers: how CPMs nearly doubled from September to November while you are discounting harder than any other time of year • Why 42% of Black Friday revenue came from email and SMS, and why your own channels are the closest thing to pure margin in Q4 • Move one: sell early while attention is cheap, and how the 13% of brands that ran October promotions had the field to themselves • Move two: the exact send cadence for the first and last day of your campaign that feels uncomfortable but makes the most money • Why the founders who win Black Friday are never the ones who spend the most in November If you are planning your biggest sales period of the year right now, this episode will help you plan for profit instead of just revenue, and build the audience that will actually be waiting to buy when CPMs double. Quick heads up: this episode mentions our partners at Omnisend for email and SMS, and there is a special offer for listeners at omnisend.com/foundr. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 05 Oct 2026 - 759 - 712: The Near-Death Experience That Built a $400M Year Business
Matt Pohlson was clinically dead for four and a half minutes. His heart had stopped, the doctor had already called it, and 40 ICU staff had gathered at the window like a silent choir when his mother refused to let them stop fighting. He came back - and the clarity from that experience reshaped his entire company. Omaze, the platform he co-founded to raise money for charity by giving everyday people the chance to win once-in-a-lifetime experiences, has sent people to be mentored by Michelle Obama, ride a tank with Arnold Schwarzenegger, and win a Lamborghini handed over by the Pope. After Matt's near-death experience, he made the hard decision to kill the parts of the business he loved most - and grew revenue over 500% while increasing headcount just 10%. In this interview, Matt breaks down the counterintuitive focus decision that unlocked Omaze's explosive growth, the controversial charity philosophy of chasing dollars over percentages, and what flatlining taught him about fear, decisions, and building a company that scales optimism. What you'll learn in this interview: The near-death experience that reset how he leads - and why he calls death his best friend and travel companion Why he killed the celebrity-experience model he loved - cutting from 300 campaigns a year to 50 - and went all in on "Omaze Owned" How a Daniel Craig campaign meant to raise $300K pulled $2.1 million - and the test that revealed the car mattered more than the celebrity How revenue grew over 500% on just a 10% headcount increase - and the focus principle behind it The controversial charity philosophy: why chasing dollars to the charity, not percentages, is what the nonprofit space actually needs The exact economics of both models - 60% to charity on celebrity campaigns, guaranteed 15% on prize campaigns - and who carries the risk How to actually partner with A-list talent: running the real numbers before giving away 5-10% of your company for star power Why the biggest decisions don't get better the more people you ask - and his "when you don't know what to do, do nothing" rule Virtues over values: why what your team does matters more than what they believe - and how he rebuilt culture at eight people Why nothing is ever as bad as the fear of it - and how replacing fear with love changed how he operates If you're building a mission-driven business, wrestling with whether to focus or diversify, or trying to lead through the kind of pressure that breaks most founders, this conversation will fundamentally change how you think about fear, focus, and building something that genuinely scales good in the world. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero GET UP TO $10K IN MATCHED AD CREDITS ON APPLOVIN Scale your DTC brand beyond Meta and Google with up to $10,000 in matched ad credits, plus $1,000 free to test AppLovin. Start here → https://applovin.com/foundr WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH MATT POHLSON Instagram → https://www.instagram.com/mattpohlson/ Website → https://www.omaze.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 01 Oct 2026 - 758 - 711: Natasha Quit Her 9-To-5 In June - Her Drink Bottle Brand Now Does $15K/Month
Natasha was on maternity leave with a newborn who cried until he was five months old, permanently thirsty, and completely fed up that the one drink bottle she owned had grown mould. She switched to drinking from a glass - hardly practical with two small kids - and mentioned to a friend, in passing, that she needed to find something better. Three or four weeks later that friend circled back: "That drink bottle thing you mentioned - are you still doing it?" That one question convinced Natasha there were more people like her out there. She launched Mode & Opal in late 2025 with a background in graphic design and corporate management, but zero e-commerce experience. In this episode, Natasha gets tactical about the moves that actually moved the needle: mining competitor reviews to design her offer, taking a product almost straight off the shelf to launch fast, and the single $3,900 press release that generated an estimated $400,000 in PR value and roughly 9 million views. What you'll learn in this interview: How a passing conversation with a friend - not a formal validation process - was the moment Natasha knew there was a real market for a better drink bottle Why she deliberately skipped long product development, took a well-reviewed bottle almost straight off Alibaba, and had her colours locked by the second sample - because her own frustration meant speed mattered more than perfection The competitor-review mining strategy: reading one- and two-star reviews of big-brand bottles to find the exact pain points (hard-to-clean straws, no replacement parts, leaking) and designing around them How she engineered average order value from day one - free replacement seals, stainless steel straw upgrades, and "buy two, get a free straw" offers that cost her little but felt valuable, instead of a discount pop-up that eats margin Why a free-gift threshold beat a free-shipping threshold for pushing AOV - and how many of her customers naturally buy 3 to 4 bottles at once for husbands and kids The single best marketing decision she made: investing $3,900 in a professional press release that landed 22+ placements, including a national airline magazine and a full-page newspaper article What that PR wave actually did - an estimated $400K in PR value, ~9 million cumulative views, and 20 sales in a single day when the story first ran How she repurposed the press coverage into her best-performing meta ad - a "the bottle New Zealanders can't stop talking about" angle with a 10% click-through rate and a lifetime ROAS over 4, still running today The exact growth curve after joining Founder: from $3,400 in April to $18,500 in August - roughly 400% growth - and settling into consistent $15K+ months as a solo operator How she runs the whole business lean - on her phone, at night, around her kids, using Claude-built AI agents to implement what she learns - and why her next strategic move is a consumable product to unlock subscriptions and lifetime value If you come from a creative or corporate background and assume e-commerce is a closed world you could never break into, this episode is for you. Natasha's story is a sharp, practical reminder that deep customer empathy, a well-built offer, and one well-placed PR bet can do more than a big budget - and that you can build something real in the margins of a busy life with young kids. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY NATASHA BURGER Instagram → https://www.instagram.com/mode_and_opal/ Website → https://www.modeandopal.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 30 Sep 2026 - 757 - 710: (Solo) I Asked 10 Billionaires The Same Question - Here's What They Said
Over 12 years of interviewing more than 100 billionaires, I started asking every one of them the same question: if you lost everything tomorrow, the money, the brand, the team, and you had to start completely from scratch, what would you do first? Richard Branson, Mark Cuban, Drew Houston, Kendra Scott, people who built billion dollar companies from nothing. Here is what struck me: ten billionaires, ten different industries, ten completely different answers on the surface. But underneath every single one was the exact same thing, and it is probably not what you would expect. In this episode, I share all ten answers, from Kendra Scott turning $500 into a billion dollar empire to Jamie Kern Lima betting on the thing everyone saw as her weakness, and the one pattern that connects them all. Here's what you'll take away: • Why Richard Branson's instant answer was "find the right people," and how that is exactly how Virgin was built across a hundred industries • Drew Houston on why founders have to be learning machines, and why the gap between where you are and where you want to be is almost always a knowledge gap • Mark Cuban's counterintuitive advice to follow your effort, not your passion, and why the distinction matters • How Jamie Kern Lima wiped off her makeup on live TV and turned the thing she was hiding into the reason customers trusted her • Tony Robbins on why 80% of success is psychology and only 20% is mechanics • The single pattern underneath all ten answers, and the one question to ask yourself if you are stuck spinning your wheels on tactics If you are stuck on funnels, tools, and tactics right now, this episode will reframe where your real starting line actually is, because the answer is almost never another tool. It is always another person. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 28 Sep 2026 - 756 - 709: AI Agents: The Only Skill That Matters in 2026 (Masterclass)
Ari Meisel spent 15 years teaching founders to do less. He's worked with over 300 assistants and once ran his business on a single hour of work a day after Crohn's disease nearly took him out. Now AI has changed the game entirely. He's running 32 AI agents across six different companies, has two agents that have been working nonstop for over 160 days, and rebuilt an entire DTC customer service operation with agents - taking first response time from 25 minutes to 44 seconds while cutting costs from over $20,000 a month to under $4,000. He's already cancelled rounds of hiring because the agents got there first. In this interview, Ari breaks down exactly how he builds and deploys autonomous AI agents, why delegation - not prompting - is the only skill that matters, and the operational principle that survives even when every tool you use becomes obsolete. What you'll learn in this interview: • Why delegation, not prompting, is the real skill - and why "the 25-word prompt that 10x's your business" is nonsense • The AI chief of staff blueprint: the 17-page framework Ari gives every agent before it does anything • The full customer service rebuild: from 25-minute response times to 44 seconds, and $20K a month to under $4K • The roles he's stopped hiring for entirely - and how agents cancelled a stack of project management interviews • How he splits one overloaded agent into a supervisor and a frontend CSR when performance drops - just like managing people • Why he gives every agent 18 foundational rules to stop it hallucinating or going off the rails • How to actually see what your agents are doing: the Trello Kanban system that turns 32 agents into ten-second decisions • The self-improving sales agent: how it rewrote its own script through seven versions in ten minutes across eight testers • Why the "nightly knowledge card" is the one thing that makes every tool replaceable • How an agent handled his kid's camp waiver from a text message while he sat in a meeting If you're a founder trying to reclaim your time, an operator curious about deploying AI agents without breaking things, or anyone who wants the real technical playbook behind autonomous AI, this conversation will fundamentally change how you think about delegation, systems, and what "work" even means going forward. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH ARI MEISEL Instagram → https://www.instagram.com/arimeisel/ LinkedIn → https://www.linkedin.com/in/productivity-coach-entrepreneur Website → https://lessdoingacademy.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 24 Sep 2026 - 755 - 708: (Solo) What Nobody Tells You About Scaling Past $1M, $5M, and $10M
Every stage of business breaks you in a different way, and nobody warns you which thing is about to break. So it always feels like you are the only one who cannot figure it out. You are not. The game just changed and nobody told you. Here is the pattern I have seen after building Foundr for over a decade and interviewing 700 founders: the person who gets you to $1 million is not the same person who gets you to $10 million. Each milestone demands you become someone new, and the hardest part is never the strategy. It is the identity shift. In this episode, I break down the three revenue walls, the million dollar wall, the five million wall, and the ten million wall, and exactly what changes and what breaks at each one. Here's what you'll take away: • The million dollar wall: why revenue plateaus because there is only one of you, and why letting go is emotionally brutal • The five million wall: the boring systems nobody wants to build, and why culture becomes a choice you make every day or it decays • The hire I tolerated for 18 months because I wanted to be liked, and how "what you walk past, you endorse" poisoned the whole team • The ten million wall: why the thing that breaks is not the business, it is your identity, and the transition from founder to CEO • Why imposter syndrome gets louder at eight figures, not quieter, and the cruel paradox that growing faster means doing less • The one piece of advice from a founder at peace with his business: only sell if you have something else you actually want to do If you are hitting a ceiling right now and cannot work out why, this episode will help you identify which wall you are approaching and who you need to become to get through it. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 21 Sep 2026 - 754 - 707: How Two Aussies Took On Samsonite & Rimowa - and Won ($100M+)
Athan Didaskalou had bet everything on a one-year-old suitcase brand called July. Then Covid wiped out travel and nearly took the business with it. What happened next turned it into a nine-figure global company. Athan came from the agency world and sold out of two businesses to go all in; his co-founder Richard Li brought the manufacturing and supply chain muscle. They chose luggage precisely because it was hard to make and dominated by a single global player. They survived lockdown on drink bottles, kept every team member, and came out the other side with a two-year head start no competitor dared to challenge. Today July has 15 tier-one retail stores in Australia, is the official luggage of the Australian Olympic Team, and is pushing into Asia, the US and beyond. In this interview, Athan breaks down his theory of why founder-led brands beat private-equity ones, the "irrational spend" that built July's brand equity from day one, and the counterintuitive reason physical retail became their cheapest customer acquisition channel. What you'll learn in this interview: • Why July was their "15th race" - and how years of prior businesses made them lethal from day one • The irrational spend theory: why founder-led brands beat PE brands by overspending in emotional areas • How they landed the four-letter July domain and sub-five-letter social handles - and why it signals trust • Why luggage is a trust business - and how brand became their moat against the dominant global player • How drink bottles and personalization kept the wheels turning when Covid wiped out travel overnight • Why the two-year Covid shutdown handed them a head start no competitor was willing to challenge • The investor who wrote a cheque with zero due diligence - after they drove out to fix a customer's lock • Why retail became their cheapest customer acquisition channel - and the rent-to-revenue math behind it • Why the US rewards short-domain, free-returns DTC brands - and why the UK has been so much harder to crack • Why staying deliberately small is getting harder - and the first year they stopped knowing every employee's name If you're building a DTC or consumer brand, trying to compete against a dominant incumbent, or rethinking whether retail belongs in your growth plan, this conversation will fundamentally change how you think about brand equity, resilience, and building something people actually trust. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH ATHAN DIDASKALOU Instagram → https://www.instagram.com/july/ LinkedIn → https://au.linkedin.com/in/athand Website → https://july.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 17 Sep 2026 - 753 - 706: Jay Hated His Plumbing Job - Now He Sells Beach Pools and did $50K in a Month
Jay Haddad hated being a plumber. He lived for the weekends - free diving, waterfalls, surfing, the beach - and when he and his wife had their first daughter at 23, the outdoor life they'd promised each other suddenly got hard. On his first Father's Day, they bought some fabric from Spotlight, watched a YouTube tutorial on how to thread his mother-in-law's dusty sewing machine, and made a waterproof beach pool so their daughter had somewhere safe to play. Strangers on the beach kept stopping to ask where they could buy one. That was the moment Sunny Seekers began - with zero e-commerce experience and a first sewing attempt Jay describes as shocking. In this episode, Jay is unusually raw about the whole grind: a year of failed fabric testing, three supplier disasters in a row, the brutal reality of a seasonal product, and the personal toll of three hours of sleep a night that nearly broke him before he learned to build sustainably. What you'll learn in this interview: How the product idea came straight from Jay and his wife's own friction as new parents - and why being your own target customer can be its own form of validation The scrappiest possible start: a first prototype sewn on a borrowed machine, tested at the beach, validated by strangers walking past asking where to buy one Why sewing in a circle nearly defeated them - and how the DIY version proved the concept before a single dollar went to a factory The year lost to fabric testing: sourcing waterproof fabric on Alibaba, missing an entire summer season, and why Jay is still glad they waited to get it right How he used Alibaba's "request for quotation" feature to find a manufacturer for a product nobody had made before - and didn't even know what search terms to use The unit economics that made it a real business: fabric alone cost $130+ per pool in Australia, but a finished unit from overseas landed at ~$25 and sold for $115 Selling out the first 200 units in a month before Christmas 2024 - and the nagging question that haunted the whole next year: do people buy this after the holidays, or only as gifts? Three separate supplier nightmares - loose threads on 200 units, a botched print at the wrong scale, leaking carry bags ironed shut by hand - and how he pushed through each one right before peak season The Black Friday scaling playbook: starting at $10/day on meta, doubling ad spend as orders doubled, reaching $1,000/day, and hitting a record $50K month in December 2025 The hardest lesson of a seasonal brand: how post-Christmas ads got expensive fast, why he was left holding stock and no cash through winter, and what he changed about looking after himself mentally to survive the off-season If you've boxed yourself into an identity - your trade, your job title, the industry you happen to be in - and quietly wonder whether you could build something of your own, this episode is for you. Jay had no network, no experience, and no idea how to sew. His story is a grounded reminder that the unglamorous grind of prototypes, supplier failures, and slow seasons is exactly what turns someone from "a guy sewing in the back of the house" into a founder. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY JAY HADDAD Instagram → https://www.instagram.com/sunnyseekers_/ Website → https://sunnyseekers.com.au/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 16 Sep 2026 - 752 - 705: (Solo) How Success Made Me Neglect the Thing That Built Everything
I am going to tell you about the dumbest thing I have done in 12 years of building Foundr. It is not a bad hire or a failed launch. It is something far more dangerous, because I did not even realise I was doing it. For four years I took my eye off the thing that built this entire business, and by the time I noticed, I had left years of growth on the table. Here is the trap: when your monetisation engine is printing money, it gives you permission to be complacent about the thing that is actually feeding it. The better the downstream business performed, the less attention we gave the upstream asset driving all of it. In this episode, I get honest about how our podcast drifted into autopilot for years, the signals that told me my core was neglected, and the aggressive refocus that brought it back. Here's what you'll take away: • Why "fine" can be the most dangerous word in business, and how success itself makes you complacent about what got you there • The four warning signs your core product is drifting, from flattening growth to customer feedback getting generic • Why your best people gravitate to the new shiny thing and your core quietly gets the B team • What Gary Vaynerchuk told me about never being complacent when one channel is winning, and why I resisted it at first • The packaging lesson that blew my mind: how two identical-quality episodes got wildly different results based on title and thumbnail alone • The three question test I now run on every new initiative to tell a real opportunity from a distraction in disguise If things in your business are going "fine" right now, this episode is a warning worth heeding. Ask yourself when you last personally touched your core product and obsessed over making it better, because if it is not recent, you might already be on autopilot. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 14 Sep 2026 - 751 - 704: How One Pivot Turned My FAILING Startup Into a $300M Brand
Mariam Naficy sold her first company for over $100 million in cash - two weeks before the Nasdaq crashed in 2000. Then she did something harder. She built Minted, a crowdsourced design marketplace her own investors thought was weird, watched it generate zero sales for its first month, and was one day away from shutting it down when it turned the corner and took off like a rocket ship. Today Minted does around $300 million a year, and she's now chairwoman while building her third company, Arcade, an AI-to-physical-product marketplace that's already raised $42 million. In this interview, Mariam breaks down why she handed product decisions entirely over to the crowd, how she survived the 2008 financial crisis by going premium, and the viral loop she deliberately engineers into every business she starts. What you'll learn in this interview: • How she landed the Eve.com domain with 1% equity, a board seat, and a Disneyland trip - for a five-year-old • Why color cosmetics flying off the shelves revealed a market nobody thought existed online • How a low-budget crowdsourced design contest saved Minted from bankruptcy after a month of zero sales • Why she trusted the crowd over industry experts - and invented the photo Save the Date in the process • How going premium let Minted grow straight through the 2008 financial crisis • The virality principle: why she won't start a business without a built-in product-driven loop • Why every hire - even designers - had to pass a financial modeling test • How she scaled greeting cards into Target and Whole Foods - and why home decor didn't work • The exact mindset that got her through nearly shutting down: stop caring what anyone thinks • Why Arcade is built to protect artists' livelihoods in the age of AI If you're building a marketplace, wrestling with whether to trust your gut or your customers, or trying to grow through a downturn without burning cash, this conversation will fundamentally change how you think about virality, community, and persisting through the moments that break most founders. SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → http://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH MARIAM NAFICY Instagram → https://www.instagram.com/mnaficy/ LinkedIn → https://www.linkedin.com/in/mariam-naficy Website → https://www.minted.com/ Website → https://tonic.xyz/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 10 Sep 2026 - 750 - 703: (Solo) If I Had to Start Over in 2026, Here's How I'd Make My First $1M
If I lost everything tomorrow, the team, the audience, the network, here's the exact tactical playbook I'd use to build back to $1 million from scratch. If I lost everything tomorrow, the team, the audience, the brand, the 13 years of relationships and network I have built, and I had to make $1 million from zero, here is exactly what I would do. This is not a motivational pep talk. It is the real, tactical, step by step playbook with no fluff. Here is the thing most founders get backwards: they build the product, then go looking for customers. You need to flip it. Find the customers first, then build the product. In this episode, I walk through the whole 0 to $1 million playbook, from how I would validate a physical product before spending a dollar on inventory to why founder-led content is the one thing I would do differently if I started over. Here's what you'll take away: • The exact three step validation process I would run before ordering a single unit, including why three star reviews are where the gold is • Why you need somewhere for your money to go before you make your first dollar, and how flying blind on cash flow nearly cost me early on • The one product, one channel rule and why trying to be everywhere is the mistake I see founders make constantly • The product economics I would insist on: 70% margins minimum and an AOV above $60 so paid ads can actually work • The pricing mistake I made on Foundr's Kickstarter that cost us thousands, and how to avoid it • My single biggest regret with Foundr: hiding behind the brand for ten years, and why I would make my face the brand from day one If you are thinking about starting something, or you are stuck spinning your wheels on a brand that has not taken off, this episode gives you the clean, no-nonsense sequence I would follow to get to that first million. Quick heads up: this episode is brought to you in partnership with Xero, the accounting software I have used to run Foundr since day one, and they have put together a genuinely strong offer for listeners in the show notes. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 07 Sep 2026 - 749 - 702: Mark Cuban Calls Us His BEST Shark Tank Deal Ever ($200M+)
Four childhood friends pooled $30,000 in a Chicago apartment to make wet wipes for men. Everyone told them dudes would never use them. Thirteen years later, Dude Wipes does close to $220 million in retail sales, runs on a team of just over 20 people, and is Mark Cuban's best-ever Shark Tank investment. They bootstrapped almost the entire way, none of them had retail experience, and they built a nine-figure business in a category the legacy players weren't even watching. In this interview, Ryan Meegan breaks down how they carried a business to $40 million with just three people, the guerrilla news-jacking playbook that made Dude Wipes a worldwide Twitter trend for pennies, and why brand marketing they never tried to measure was the smartest bet they made. What you'll learn in this interview: • Why four founders with different skill sets and zero egos never clashed in 15 years • How they got their first national retail deal with Kroger through pure cold-calling hustle • The Shark Tank bidding war that landed Mark Cuban's check - and why he calls it his best investment • Why going viral and trending #3 worldwide on Twitter barely moved sales - and why they kept doing it anyway • The Isaiah Crowell NFL moment: how a $3,500 deal turned into ESPN, Howard Stern, and national press • The Amex float strategy: how putting every PO on a credit card funded growth without big raises • Why they refused the VC and Shopify-loan path most DTC brands take - and how they built bank credibility instead • The line-extension trap: why deodorant and body wash failed, and how Covid refocused them on flushable wipes • How three people ran the business to $40M before hiring 15 more • Why they took private equity from TSG while keeping control - and the billion-dollar goal behind it If you're bootstrapping a CPG brand, trying to build awareness without a war chest, or wrestling with whether to chase line extensions or go deeper in your core category, this conversation will fundamentally change how you think about brand, capital efficiency, and staying in the game long enough to win. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH DUDE WIPES Instagram → https://www.instagram.com/dudewipes/ Website → https://dudewipes.com/ Ryan's LinkedIn → https://www.linkedin.com/in/ryan-meegan-07971859/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 03 Sep 2026 - 748 - 701: Trieu Doubled His Brand To $200K/Month In 5 Months - Whilst Still Working Full Time
Trieu became a dentist because he liked working with his hands and helping people - he got into UCSF's dental school as the very last student accepted, number 81 in a class of 81. Then the job started breaking his body. Aching neck, aching back, and mentors around him retiring early from surgeries. So he tinkered with some prisms until he could sit up straight and see like he was looking through a microscope, filed a patent, and built Hero Loops - ergonomic loupes that do the job of a $20,000 wall-mounted unit. He launched it one month before the pandemic hit. He still practises dentistry full time while running the whole thing. In this episode, Trieu gets honest about the brutal timing of launching right before Covid, the years it took to crack marketing after nailing the product, and how he thinks about building - including a psychology framework he borrowed straight from dentistry. What you'll learn in this interview: The origin story: how his own neck and back pain, plus watching colleagues retire early from surgery, drove him to prototype an alternative to the bulky $20K microscopes on the market Why he left dentistry income on the table for product income - and the scaling logic behind it: a product has quality control and consistency, while a dental chair only makes money when you're in it The painful timing lesson: launching one month before the pandemic, doing $20K in the first month, then watching competitors use the downtime to copy his product - and why he still says launch before it's perfect The plateau most founders hit: stuck at $5-6K a month with a great product because "you can be the best dentist, but if nobody knows about you, they won't come" The single change that broke the plateau: a new website and platform that did $50K in its first month How defining what "success" actually looks like - and watching that target keep moving from $50K to $100K to $200K - helped him appreciate the milestones instead of always chasing the next one The core ads skill that drove the growth: learning when to turn ads off, when to turn them on, and when to increase budget - and building the confidence to do it The "five Ps" framework he uses to judge whether a product will sell - pain, profit, prestige, preservation, and pleasure - and how Hero Loops hits several at once Why static ads outperform video for his analytical, detail-oriented audience - and how live customer-reaction reels hook attention at the top of the funnel What's next: bringing manufacturing in-house for faster delivery and expanding worldwide beyond the US - and the licensing and distribution hurdles that come with it If you're a professional with deep expertise in a field, sitting on a product idea but unsure whether you can build something outside your day job - this episode is for you. Trieu's story is a grounded reminder that the product is only half the battle: learning to market it is the skill that actually compounds, and you don't have to quit everything to start. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY TRIEU TON LinkedIn → https://www.linkedin.com/in/trieu-ton-3b7055122/ Website → https://heroloupes.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 02 Sep 2026 - 747 - 700: (Solo) The Ambassador Strategy - How to get Famous People to Sell Your Brand for Free
I interviewed the founder of HexClad about a year ago. Cookware, pots and pans, not the sexiest category in the world. But their ambassador is Gordon Ramsay, one of the most famous chefs on the planet. And when he holds up your pan, you do not need to explain anything else. So here is the question nobody asks: how does a cookware brand get Gordon Ramsay without a massive ad budget or a celebrity agency on retainer? Here is the answer: a genuinely great product and a strategy. The same strategy I have used to build Foundr for over a decade and that I apply to every brand I advise. In this episode, I break down the ambassador playbook step by step so you can get respected people in your market to endorse your brand, even if you are starting with zero audience and zero connections. Here's what you'll take away: • The three pillars of a brand that breaks through: a genuinely great product, next level design, and ambassadors • The "who's who in the zoo" framework for identifying the 10 to 30 people your customer already trusts • Why the gatekeeper is not an obstacle but your way through the door, and how to treat them accordingly • The follow up strategy that got me Barbara Corcoran after two years and how one question reframes "no" into "not right now" • The Amazon coming soon hack that lets you offer distribution instead of asking for a favour, and how it landed me Tim Ferriss and Tony Robbins • Why ambassadors are not a "later, once we're big enough" thing, and how each one you land makes the next one easier If you have been assuming that big-name endorsements are reserved for brands with big budgets, this episode will show you exactly why they are not, and give you a concrete list to start working through this week. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 31 Aug 2026 - 746 - 699: A Pizza Oven Saved My Life - Then It Built a $100M Company
Tom Gozney hit rock bottom with addiction at 21 and spent nearly a year in a South African rehab facility. What saved him back home wasn't a business plan - it was a brick oven he dug into his garden, because cooking pizza for his friends was the only way he could socialise without alcohol at the centre of it. He noticed something: after a few weeks, people stopped bringing beer and started bringing toppings. That shift in behaviour became the entire thesis of the brand. Fifteen years later, Gozney is valued at over $100 million, did $8.5 million in the first four hours of its Dome launch, and forged the portable pizza oven category from scratch. In this interview, Tom breaks down why he redesigned a fully tooled product weeks before shipping after watching a Steve Jobs documentary, how a synchronised Instagram launch with 30 influencers generated 27,000 signups, and the imposter syndrome that made him underprice his own ovens for years. What you'll learn in this interview: • Why he says he's selling a shift in human behaviour, not hardware or pizza • How he got his first oven sale by leaflet-dropping a restaurant with genuinely terrible branding • The £5K loan from his mum that funded the first fibreglass mould and website • Why he scrapped a fully tooled steel design weeks before shipping - and retooled it in silicone in a month • The Richard Branson exchange that put an oven on Necker Island and fuelled the Rockbox launch • The synchronised 30-influencer Instagram drop that drove 27,000 signups before a single unit shipped • How the Dome launch did $8.5M in four hours, crashed the site, and triggered death threats over a pizza oven • Why going straight to big factories doesn't work before you've proven volume - and how middlemen killed his early margins • How he rebuilt his entire supply chain by recruiting a board and COO who'd done it in outdoor grilling • Why imposter syndrome made him underprice for years - and what finally gave him conviction to charge premium If you're building a physical product brand, wrestling with manufacturing and margins you don't yet understand, or scared to price for the value you've actually built, this conversation will fundamentally change how you think about brand, product obsession, and building something bigger than yourself. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH TOM GOZNEY Instagram → https://www.instagram.com/tomgozney/ Instagram → https://www.instagram.com/gozney/ Website → https://www.gozney.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 27 Aug 2026 - 745 - 698: (Solo) She Worked 7 Hours a Day & Made Zero Sales - This Was The Fix
I got on a call recently with a founder in our community who had everything right. Amazing product, clear gap in the market, strong differentiators, all the boxes ticked. But she had no sales. So I asked her to walk me through her days, and she said she was doing seven hour days posting on TikTok, Instagram, running Facebook ads, trying everything. And I told her that was the problem right there. Here is what I keep seeing: the number one reason new brands fail at marketing is not a bad product. It is scattered focus. Every guru on the internet is telling you to be everywhere, and when you try to do everything, you become mediocre at all of it. In this episode, I make the case for doing less and break down the exact framework I gave her: one product, one channel, one message, to one customer avatar. Here's what you'll take away: Why scattered focus, not a bad product, is what kills most new brands, and how to spot it in your own business The one product principle: why obsessing over a single hero product beats spreading yourself across ten SKUs Why there is no wrong channel to start with, and how to pick the one to go all in on The hard lesson I learned building Foundr on the back of one channel I did not actually own Why most founders underprice their product, and how pricing can be the difference between a campaign that scales and one that never does Why the company that can afford to spend the most to acquire a customer wins, and how your unit economics decide that fight If you have got a great product but nothing is sticking, this episode will show you why, and give you a simple four step filter to focus everything down to what will actually move the needle. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 24 Aug 2026 - 744 - 697: I Sold My House to Fund My Idea - and Built a £26M brand
Sam Faiers had already shut down two businesses. She'd laid off her entire team in one day when the fashion brand stopped turning a profit. So when she found a collagen formula every manufacturer told her couldn't be made, she put the money from the sale of her house into it anyway. Revive Collagen launched in August 2020, mid-lockdown, with no marketing budget, and hit £1 million in sales in 13 weeks. Six years later it's on track for £26 million, sits in 6,000 US retail doors including Ulta, Walgreens and CVS, and is the most awarded supplement brand in the UK - all bootstrapped. In this interview, Sam breaks down the mistakes from her failed businesses that she deliberately reversed the second time, why she spent five and a half years without an office, and what a Kim Kardashian post actually does for a business (it's not what you'd think). What you'll learn in this interview: • Why she sold her house to fund the launch - and how two failed businesses gave her the conviction to do it • The two-year R&D battle where every manufacturer said no - and why that formula is now nearly impossible to copy • How one raw, unpolished video about her own acne drove the entire first 13 weeks • Why they had no office for five and a half years - and the exact overhead mistake that killed her last brand • The cash flow discipline that changed everything: reviewing accounts weekly, not monthly • How they got a six-figure London bus campaign for around 20% of rate card • The ambassador playbook: why they gift product for months before ever signing a deal • What the Kim Kardashian post really did - and why the retailer meetings mattered more than the sales spike • Why she deliberately kept her face off the packaging to avoid being labelled a celebrity brand • How they build products around life stages instead of one supplement for everyone If you're bootstrapping a wellness or supplement brand, deciding whether to put your own face on your marketing, or coming back from a business that failed and trying to get it right this time, this conversation will fundamentally change how you think about product, trust, and building something bigger than your own name. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH SAM FAIERS Instagram → https://www.instagram.com/samanthafaiers/ Instagram → https://www.instagram.com/revivecollagen/ Website → https://revivecollagen.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 20 Aug 2026 - 743 - 696: Jamie Left a Nike Exec Job to Bootstrap A Drinkware Brand - Now It's On Track For Seven Figures
Jamie spent over 20 years in corporate America, including a stint as a Nike executive, before a barbecue accident changed everything. Hosting friends and family in Park City after a near-perfect day outdoors, he tripped and sent a tray of drinks flying over everyone. That clumsy moment sparked two ideas at once: a better, genuinely leak-proof product, and a brand built around the outdoor-lifestyle-and-moments-of-pause philosophy he and his wife Michelle wanted to live by. He funded SMMT Outdoor entirely himself, went all in from day one, and spent nearly two years and 50 prototypes getting the product right. In this episode, Jamie is refreshingly honest about the unglamorous middle of the journey - the weeks with one or two orders, the pivot away from the category he launched in, the agency burns, and what it actually feels like to go from leading teams of teams at a billion-dollar company to being a solo operator with one contractor. What you'll learn in this interview: The barbecue accident that sparked the whole brand - and why Jamie built SMMT around an emotional "active days and moments of pause" philosophy, not just a product spec Why he launched in bags first, then pivoted to drinkware after 18 months and 50 prototypes - and how that detour taught him the business he actually needed to learn The reality of the early days: weeks with one or two orders, days of "crickets," and the humbling gap between corporate experience and blank-page entrepreneurship Why he chose to bootstrap with only family capital - keeping the cap table simple, feeling the pain of his own money, and buying himself the freedom to make long-term decisions The "rocking chair test" he uses for big life and business decisions - fast-forwarding to age 80 and asking what he'd regret not doing Why he deliberately built for a sustainable family business rather than a unicorn - and his case for why a $10-20M brand is a huge win nobody talks about enough The Thanksgiving dinner spent refreshing Shopify to see if the drinkware launch would work - and why 25 sales on day one felt enormous The exact equation he obsessed over instead of chasing revenue: customer lifetime value over CAC - and why he attacked the numerator first through bundles, pairs, and a 980-unit limited edition program How a $15 personalisation upsell, print-on-demand art drops, and a rethought checkout experience quietly built margin and average order value The hard-won mindset lessons: entrepreneurship isn't linear, most businesses fail from lack of conviction or poor cashflow rather than bad ideas, and "cortisol management" is a real barometer of startup life If you're a corporate operator wondering whether your experience actually translates to building something of your own - or you're bootstrapping slowly and quietly, doubling year over year without the meteoric rise - this episode is for you. Jamie's story is a grounded reminder that deep patience, obsessing the right numbers, and genuinely loving the problem you're solving matter far more than a fast start. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY JAMIE PARKER Instagram → https://www.instagram.com/smmtoutdoor/ LinkedIn → https://www.linkedin.com/in/jamie-parker-77b2639/ Website → https://smmtoutdoor.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 19 Aug 2026 - 742 - 695: (Solo) I Was Winning. So Why Was I Falling Apart?
A few years ago I started waking up in the middle of the night, heart pounding, cold sweats, this overwhelming feeling of dread I could not explain. And the strangest part was there was no crisis. The business was good. Revenue was up. Everything on paper was working. But something was deeply wrong, and it took me weeks to even name it. Here is what nobody tells you about burnout: it does not always show up when things are falling apart. Mine showed up during the best run of my professional life. And when you are winning, you keep going, because why would you stop? In this episode, I get honest about hitting a wall I never saw coming, what crippling anxiety actually felt like for someone who genuinely loves his work, and the rituals and mindset shifts that pulled me out and keep me balanced now. Here's what you'll take away: Why burnout often arrives at your peak, not your low point, and why there is no alarm that tells you when you have crossed the line The scale framework I use now: family, relationships, friends, and work, and why the problem is never that it tips but that you fail to rebalance Why obsession without boundaries will eat you alive, even when the drive itself is real and necessary What Steve Huffman's answer to "is it ever enough?" taught me about the lie our minds keep telling us The specific practices that refill my cup now, from meditation and therapy to gaming, pickleball, and leaving my phone at the door Why taking care of the person building the business is not a weakness but the whole point If you are waking up in the night and you do not know why, or you have been feeding one side of the scale for years and telling yourself you are fine, this episode is for you. It does not mean you are broken. It means you need to take care of the person building this thing. This is a sensitive area, so a quick note: if any of this feels close to home and you are struggling with your mental health, it is worth reaching out to a professional or someone you trust. You do not have to sit with it alone. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 17 Aug 2026 - 741 - 694: We Were Two Weeks From Shutting Down - Then We Found Our $30M Product
Chris and Jake Yap were two weeks from shutting down. A billion-dollar retailer had copied every product they launched and sold them for one tenth the price, then put it in the news - buy this coffee table from us for $499, or from them for $49. They'd burned their business savings, their personal savings, and taken out personal guarantee loans chasing speed. Jake was telling his wife he wasn't sure he could make rent. Then in those two weeks they made one switch that changed everything: instead of testing designs, they started testing problems. Little Lively launched last October, grew 30% compounding month on month, went worldwide in the same month it launched, and now spends around $600,000 a month on Meta. In this interview, Chris and Jake break down the exact testing framework that found their winning product, why they killed 700 SKUs to bet everything on one, and how they built an internal AI agent that runs across their entire company. What you'll learn in this interview: • The switch from testing designs to testing problems - and why it saved the business in two weeks • How they turned $10 wireless chargers off Alibaba into $300K cash in their first year • The Abundance Framework: testing up to 1,000 designs a week before ever committing to production • Why fast-fashion-style furniture drops became a vicious discount cycle that nearly killed them • How suppliers with 60-day payment terms effectively became their investors - and the relationship approach behind it • The 60 ROAS launch: what happens when you actually solve a real problem • Why they now welcome copycats - and how being 4-5 years ahead on the roadmap makes competitors into free marketing • Why they launched worldwide in the same month instead of proving one market first • "Australia is small and hard, the US is big and easy" - the contrarian take on market selection • Caesar: the company-wide AI agent living in their Slack that their team used to build an entire ERP system from scratch If you're running a DTC brand, drowning in SKUs and discounts, or trying to figure out how to find the one product worth betting everything on, this conversation will fundamentally change how you think about focus, product testing, and what it takes to come back from the brink. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend using the code FOUNDR50. Start here → https://your.omnisend.com/foundr SAVE 95% ON XERO FOR 6 MONTHS Simplify your business finances with 95% off Xero for your first 6 months. Start here → https://foundr.com/xero WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH LIFELY Instagram → https://www.instagram.com/lifelyhome/ LinkedIn →https://www.linkedin.com/company/lifelyhome/ Website → https://lifely.com.au/ CONNECT WITH JAKE YAP LinkedIn → https://www.linkedin.com/in/jake-yap/ CONNECT WITH CHRIS YAP LinkedIn → https://www.linkedin.com/in/chris-yap-185964198/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 13 Aug 2026 - 740 - 693: (Solo) How I Built a Billion Dollar Network From Nothing (And How You Can Too)
I get this all the time. DMs, emails, some version of "hey Nathan, can I pick your brain?" And I get it, the intention is good. But here is what that message actually says to the person receiving it: I want your most valuable asset, your time, and I am going to give you nothing in return. Here is the thing: I grew up in the suburbs with zero entrepreneurial connections. No successful friends, no business-owning parents, no network to speak of. Every single room I have ever been in, I built my way into from nothing. And the principle that made it possible is stupidly simple. In this episode, I share the serve first, ask later framework and walk through exactly how I used it to land interviews with Richard Branson four months into building Foundr, connect with Gary Vee, Mark Cuban, and Arianna Huffington, and build a network that has carried me through some of the hardest seasons of my career. Here's what you'll take away: Why "can I pick your brain?" is broken and what it signals to the person on the other end The one question that should drive every networking interaction: how can I genuinely help this person and expect nothing in return How framing the ask around someone's mission, not your need, is what got Richard Branson to say yes to a four month old magazine The actual playbook for building from zero: how to figure out your currency, find the right person, and reach out with a specific offer tied to what they are working on right now Why stopping putting successful people on a pedestal is the mindset shift that changes how every conversation starts Why you need both peers and mentors in your network and what each one does for you that the other cannot If you have been waiting until you have more followers, a bigger platform, or something impressive to show before reaching out to people you want to learn from, this episode will show you that you already have more to offer than you think. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 10 Aug 2026 - 739 - 692: I Was Selling Muesli From My Car Boot - Now I Run a $35M/Year Brand
Narelle Plapp started Food for Health twenty years ago making recipes for patients who couldn't find allergy-friendly food on any shelf. She loaded her first Woolworths order by hand - 14 pallets that showed up via fax and had to be paid on delivery, funded by $13,000 from her parents. One SKU eventually did over $2 million in a single retailer. Then she did something most brand founders never attempt: she borrowed $8 million, bought a paddock, and built her own factory. Nine years later, Grain and Bake is a $35 million business - targeting $45 million this year - manufacturing for some of Australia's biggest food brands, running 24 hours a day, five days a week. In this interview, Narelle breaks down what it actually costs to manufacture an allergy-friendly bar, the brutal reality of retailer margins most founders don't see until it's too late, and how she convinced the bank to back a factory before she had a single confirmed customer. What you'll learn in this interview: • How she got her first Woolworths ranging by making sure friends and family bought out every trial store • Why she borrowed $8M to build a factory on a paddock - and the soft commitments from brands that got the bank across the line • What it actually costs to manufacture an allergy-friendly bar - the hidden 10-hour cleans, swabs, and 8-person cleaning crews most founders never budget for • The $0.40 per bar reality - and how to work backwards from RRP to know if your margins will survive retail • Why retailer category margins have jumped from 35% to 55% minimum over 20 years - and what that means for your P&L before you pitch Coles or Woolies • The 13-week clock: how long you have to prove velocity on shelf before you get cut • How a $4M investment in automated cartoning increased her line output by 30% - and why she passed the savings to her brand clients • Why she trawled Europe to find the right oven - and what it takes to commission a factory when you've never built one before • The Grain and Bake client model: why manufacturing for other brands makes her a partner in their success, not just a supplier • What she'd tell every CPG founder before they pitch a retailer - the whiteboard session that changed one AFL footballer's entire business plan If you're building a CPG brand, trying to understand the real cost of manufacturing and retail at scale, or just want an unfiltered view of what Australian food manufacturing actually looks like from the inside, this conversation will fundamentally change how you think about supply chain, margins, and what it takes to build something that lasts 20 years. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH NARELLE PLAP Instagram → https://www.instagram.com/narelleplapp/ LinkedIn → https://www.linkedin.com/in/narelle-plapp-27b3771a/ Website → https://grainandbakeco.com.au/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 06 Aug 2026 - 738 - 691: Anastasia's $850K Brand Collapsed To $42K A Month - Then She Tripled It Herself
Anastasia Chapman came up with the idea for her brand where all good bathroom ideas start - sitting on a toilet, hiding a competitor's product she was too embarrassed to be seen with. She developed the formula in an Airbnb in Cape Town, mixing batch after batch and testing them by dropping samples into wine glasses of water. She hand-poured her first 50,000 units in her mum's garage. Then, after her biggest-ever year, a trademark dispute forced her to legally change the brand name overnight - and the meta ads machine she'd built her entire business on collapsed within two months. This is the story of the rebuild. In this episode, Anastasia is unusually candid about the whole messy arc: building Loui (formerly Lou Drops) as a complete e-commerce beginner, scaling to $850K on the back of just three winning ads, watching it crash to a $42K month after the rebrand, and clawing her way back by finally taking control of the ads she'd always outsourced. What you'll learn in this interview: The exact validation method she used before spending real money - handing friends five numbered samples and a "poop scorecard," then living with the product in her bathroom for months until she got it right Why she developed the product in 2022 but didn't properly launch until 2024 - and how she kept a full-time job while the business slowly proved itself How a trademark cease-and-desist forced a full rebrand right after she'd paid for 30,000 units of packaging - and the timeline she had to negotiate just to sell through existing stock The hard lesson about platform dependency: how being reliant on three winning ads and one outsourced media buyer left her exposed when it all stopped working Why she fired the person running her ads and took the account in-house - and what she discovered was actually being wasted once she understood the numbers herself The specific ad account restructure that turned things around: consolidating from scattered lookalike campaigns and multiple ad sets into a cleaner ABO testing structure The unit economics that actually matter beyond ROAS - add-to-cart cost, cost per purchase, frequency, and hook rate - and how knowing her kill threshold changed how fast she tests Why founder-led ads beat every expensive UGC creator she hired - and how a skit ad she was mortified to film "started printing money" overnight How she structures a solo founder's week around three "big rocks," swallows the toad first, and protects her time from busywork and AI rabbit holes The retail arm quietly growing alongside DTC - now in over 300 stores - and why an outside audit of her website and offer unlocked the next stage of growth If you're a solo founder who feels like the whole business rests on your shoulders - or you've built something on a channel you don't fully control and you can feel how fragile that is - this episode will hit home. Anastasia's story is proof that the answer usually isn't a white knight who rides in to save you. It's the far less glamorous work of understanding your own business well enough that nobody else has to. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY ANASTASIA CHAPMAN Instagram → https://www.instagram.com/iamstais/ Brand Instagram → https://www.instagram.com/tryloui/ LinkedIn → https://www.linkedin.com/in/anastasia-chapman/ Website → https://tryloui.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 05 Aug 2026 - 737 - 690: (Solo) The Truth About Selling Your Business (From Someone Who Said No)
At some point, if you are building a DTC brand and getting traction, someone is going to reach out. An aggregator, a private equity firm, a bigger competitor. And most founders have no idea what to do when that happens because nobody ever walks you through it. Here is the thing: that cold email landing in your inbox is not random. There are analysts sitting in offices right now scraping the internet for fast growing Shopify stores, looking for founders who might be ready to tap out. And they are hoping they caught you on a bad day. In this episode, I walk through everything I have learned about acquisition conversations, from the first time someone tried to buy Foundr twelve months in, to the advice I gave a close friend that led to a life changing exit after fifteen years of building. Here's what you'll take away: Why you always take the call, even if you are nowhere near ready to sell, and what you can learn from it Why the worst time to sell is when you are desperate and the best time is when everything is working The questions to ask in any acquisition conversation that will teach you more about your own business than years of operating alone How to hold your cards close without shutting the conversation down entirely Why businesses are bought not sold, and what that means for how you should be approaching your growth right now The warning signs that a buyer is trying to get you to sell it in your mind before the deal is done, and what that costs founders who fall for it If you have ever received one of these emails and did not know whether to reply, delete it, or get excited, this episode will give you a clear framework for handling it the right way. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 03 Aug 2026 - 736 - 689: I Sold ONE Product in ONE Color - Then Exited for Half a Billion
Rob Ward exited Quad Lock last year for half a billion dollars. He never took a cent of outside investment to build it, was profitable every single month from day one, and ran the business with a skeleton team for years while competitors burned cash chasing scale. His first product got ripped off. His second became the thing everybody with a phone mount on their bike, car, motorcycle, or desk knows by name. This is his third appearance on the Foundr Podcast across a decade, and the first since the exit. In this interview, Rob breaks down the three-gate model he now uses to diagnose why DTC brands break, why he deliberately pulled his own face out of Quad Lock's content years before selling, and the single biggest myth he says destroyed a generation of e-commerce companies. What you'll learn in this interview: • Why "scale will fix our unit economics" is the biggest myth in DTC - and what it actually does instead • The three-gate model: first-order profitability, cash-back time, and LTV ratio - and how to know which gate you're failing • Why he built an ecosystem instead of a hero product - and how $200 of mounts creates real lock-in • How hiring painfully slowly kept Quad Lock profitable every single month it existed • Why he deliberately stopped putting his face in the brand's content - and how that decision protected the half-billion exit • The gross margin number he'd insist on if he started again today • Why the customer with the higher AOV today isn't always the one worth acquiring • How they used retail to extend reach without breaking the DTC model • What the private equity deal actually changed - and why the money never even entered the business • The three separate emotional hits of exiting: the first sell-down, the full sale, and the last day If you're bootstrapping a DTC brand, trying to fix unit economics that don't quite work, or thinking about what makes a business actually sellable one day, this conversation will fundamentally change how you think about lock-in, margins, and building something bigger than yourself. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH ROB WARD Instagram → https://www.instagram.com/robyward/ LinkedIn → https://www.linkedin.com/in/robwardau/ Website → https://www.quadlockcase.com FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 30 Jul 2026 - 735 - 290: Disrupting the Desk Phone and Taking on Google Voice, With Dialpad Founder Craig Walker
Craig Walker’s on a mission to overhaul the way businesses communicate, with cloud-based phone service Dialpad. As a securities attorney in Silicon Valley, Craig Walker met regularly with a who’s who of Palo Alto venture capitalists, startup founders, and investment bankers. He thrilled at their stories of big ideas and bold risks. Then one day in 1998, he decided it was time to live one of those startup stories of his own. When life offered him an opportunity to sit on the other side of the table, he said yes without hesitation. That decision shaped the rest of Walker’s life, first as a VC and soon after, as head of his own companies. Today, he’s the founder and CEO of Dialpad, a cloud-based business communications company that is rapidly approaching the coveted $100 million revenue benchmark. The San Francisco-based startup is changing the way businesses communicate, by shifting them from traditional desk phones to cloud-based service, and all the powerful features that come with it. In fact, much of Walker’s career after that fateful day has been all about improving business communications. He’s been disrupting the stodgy old office desk phone in some way or another for around 20 years, having laid the groundwork for Google Voice and Yahoo! Voice, and ultimately taking them on as a formidable competitor. From Attorney to Founder Walker was quite successful as a lawyer, but it was in that role that he became drawn to the prospect of starting his own business, and learned what it takes to make it happen. “Once I was a lawyer and I met a bunch of CEOs and founders, I realized there wasn’t any real magic to it,” Walker says. “It was just taking a risk or taking a chance and having a good idea and a good team to go along with you.” When a client asked him to leave his job behind and join a venture fund, he took the opportunity. But his time with TeleSoft Partners and Sterling Payot Capital, both of which invested in early-stage telecom startups, was only a combined four years. In November 2001, when an internet telephony service asked him to step in as CEO, again, he took the leap. And he’s been in the game ever since. That company was the first iteration of Dialpad, where Walker served as CEO and built relationships with his coworkers and others in the tech space, who would stick by his side through future ventures. When Dialpad 1.0 was acquired in 2005 by Yahoo! as the base for Yahoo! Voice, he took on his first role as a founder and launched a similar company, GrandCentral Communications. This was yet another foray into the world of online phone communication, but in less than two years, it was also acquired, this time by Google. For nearly four years, Walker continued on with GrandCentral, now called Google Voice, but before long it was time for him to move on once again. Having now laid the groundwork for both Yahoo! Voice and Google Voice, Walker was ready to challenge them for supremacy. Desk Phone Disruption A good name is hard to find. So when Walker and crew decided to found a new online communication company, they knew they needed to have a little chat with Yahoo! first. The owner of the first version of Dialpad agreed to sell the name back to Walker—including the all-important URL—and in 2011, Dialpad 2.0 was off to the races. His goal remained very much the same—the master the art of using the the internet as your business phone. As Walker boasts, Dialpad offers “all the power of a business phone system, but from anywhere in the world.” “The world has changed,” Walker says. "You’re working from anywhere at any time, and not having the ability to do that from your business phone system is crazy.” Using the latest iteration of Dialpad, businesses can toss their hardware to the curb and use the cloud to connect team members and clients. By importing existing numbers, companies can use a single system to manage all phone communications. There’s even an app that instantly transforms a cell phone into a work phone, allowing employees to port their number and merge into existing CRMs, productivity suites, and social networks. And with an AI integration that alerts supervisors of red flags like an irate customer, prompting them to step into the situation, sales teams could grow and improve with ease. Convenience was key, and customers of Dialpad rapidly embraced the new technology. After winning TechCrunch Disrupt and being featured several blog posts and articles, Dialpad saw a flood of new inquiries. But even with all the buzz around the new business, Dialpad wasn’t above the need to make cold calls. As you might expect, however, Walker’s approach to cold calling is a little different than just picking up a phone and hoping for the best. He explains that they first built a list of “modern-thinking companies.” Then, they investigated what tools those businesses were already using to accomplish basic day-to-day tasks. If they found a list of antiquated, on-premise technologies, they crossed the business off their list. If, however, they found that a company used other cloud-based technologies, they knew they’d found a lead and would reach out. “Ultimately you want to get up to the CIO, but building champions below the CIO is great,” Walker says. “The folks who are going to be actually responsible for managing the day-to-day of the product are great ones to start with.” As momentum built, so did Dialpad’s sales team and advertising budget, along with a loyal customer base. “I don’t see any other competitors on the horizon coming out of the startup world,” Walker says, “so now you’re just competing against the legacy guys that you know you’re ahead of and can out-innovate because you’re more modern.” Despite their edge as an innovator, Walker acknowledges that no business grows without facing its share of challenges. “On the road to success, there’s plenty of roadblocks and challenges on a daily basis, and I think every startup goes through those.” Staying Nimble The first major hurdle Dialpad had to clear was convincing major corporations to trust all of their critical calls to the cloud. This was back in 2011, when the concept was still fairly new. But even if they could achieve that goal, Walker had to struggle through the complex process of raising money, gaining traction, finding early customers, building a healthy organization, remaining innovative while serving existing customers, and so much more. Most importantly, Walker had to become excellent at making decisions. He insists, however, that this doesn’t necessarily mean being right all the time. “There have been many times I’ve been wrong,” Walker says. “You just need to adjust and move on, because you’re never going to always be right, and if you wait until everything is so clear that you’re always right, you’re going to be moving way too slow.” The key is to remain attentive and flexible. “One of the beauties of a startup is if you do realize you missed something or you moved too quickly one way or you moved too slowly one way, you can pretty quickly adjust it as long as you stay nimble,” he says. And, above all, Walker advises founders to trust their instincts. Even though he has spent the last two decades gathering a collection of trusted friends and advisors, he still occasionally throws caution to the wind and goes his own way. “The decisions all come down to you, and, because of that, I do think you’ve got to trust your gut,” he says. “You’re the one that’s going to live with the outcome. Don’t let people talk you into things that don’t make sense to you.” Walker explains that, because everyone has a different perspective, two equally intelligent and well-informed people can come to diametrically opposed viewpoints on a situation and what is best to do next. So his best piece of advice to new founders is simply this: “Stick to the North Star of what your idea was, and see it through.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways Why Walker, a Silicon Valley securities attorney, decided to transition into the world of entrepreneurship How the first iteration of internet telephony service Dialpad came to be How Walker became involved in companies that were eventually acquired by Yahoo! and Google The reason Walker decided to buy back the name Dialpad in 2011 Why introducing the cloud became a game changer for Dialpad and its customers Walker’s unconventional approach to cold calling Why it’s OK to make the wrong decision sometimes The best advice Walker can offer about staying nimble and trusting your instincts
Tue, 25 Feb 2020 - 734 - 202: How Eric Siu Bought Single Grain for $2 and Turned it into a Marketing Powerhouse
The Comeback Kid In 2013, Eric Siu bought a failing SEO agency for two dollars. Today, he’s built it into a digital marketing powerhouse that serves giants of the tech industry. These days, Eric Siu rubs elbows with the internet marketing elite, hosting a popular podcast with online guru Neil Patel, and leading the successful agency Single Grain, which boasts clients like Uber, Amazon, and Salesforce. But go back about six years, and Eric Siu was just a 25-year-old new hire entrusted with the monumental task of saving a tanking company. “A month into it, the CEO pulls me aside,” Siu recalls, “and he's like, ‘Eric, you know, 48 people, their families, they're riding on your shoulders right now, and if you can't hit numbers in the next month, we're gonna have to let you go.’” Siu had taken a job leading the marketing for education startup Treehouse. He loved the product and the team, but he had no idea the revenues were stagnant. It hadn’t hit its numbers goals in the last two years, and when Siu came onboard, the company had only five or six months of cash left in the bank. “I was like, ‘Oh, man. We're gonna go down, and it's me that's kind of responsible for revenue growth because it's a subscription-based product.’” After seeing some traction on Treehouse’s YouTube account, Siu took a gamble and put all the company’s budget into YouTube advertising. This was 2012, and Facebook ads hadn’t quite taken off. And for Treehouse, which teaches video courses on coding and web design, YouTube was a natural fit. Siu began bidding on promising keywords, and the team created an inspirational video ad inspired by Apple’s slick aesthetic. “We just started cranking out a bunch of sign-ups that way,” Siu says. “The price point wasn't that bad, and so things started to really blow up there.” From there, Siu fired their PR agency and started working with one that was paid for performance. By the time he left Treehouse, Siu says he’d helped take the company from about 500 new subscribers a month to between 3,500 and 4,000. Now, Treehouse sees $15 million in annual revenue, according to a March 2018 Mixergy interview with CEO Ryan Carson. “So they're fantastic now,” Siu says. “They're just building on top of everything that they're doing.” That may sound like an exceptional comeback, but it was only the beginning for Siu. From there he embarked on a career of getting into tight spots, taking risks, sometimes failing, and then making comebacks, all culminating in the success of his digital marketing agency. Lose Money Now, Make Much More Later It’s important to note that, while Treehouse was bringing in more customers, it wasn’t profitable in the short term. That gets to an important concept that Siu believes isn’t talked about enough, but has been an important one in his work to breathe new life into companies—the payback period. They payback period is the length of time required to recover the cost on an investment. According to Siu, mastering the payback period can mean the difference between a quick, small ROI, and building a company with a huge payday. For SaaS businesses, payback period tends to be long, with some companies not breaking even on an investment until 18 months out. But if they look at the long term, they know they can make back way more than that initial investment if they’re patient, understand the lifetime value (LTV) of a customer, and know their numbers well. In episode 551 of their Marketing School podcast, Siu and Patel talk about the difference between seven-figure versus nine-figure businesses. Seven-figure businesses want a return on investment right away. Nine-figure businesses, however, are willing to lose money at first because they know the lifetime value of their customers. Siu points to ClickFunnels as a great example of how understanding payback period can pay off in the long run. The marketing funnels software company is completely bootstrapped and reached $60 million in annual recurring revenue in 2017. “The reason they're able to do that is because they have their numbers locked down,” he explains. “They are willing to perhaps even break even or lose money on the front end, right? So let's say when they first acquire an email or even a free trial in the beginning, they're going to lose money, but they know that their funnel in the backend is so locked down that they can upsell people on, you know, their mastermind or other bundles, things like that.” Siu gives a hypothetical example too: Let’s say it costs you $1,200 to acquire a customer who pays $100 a month. The payback period, then, is 12 months. But if you can find a way to increase that price to $300 a month, you’re looking at a payback period that takes one-third the time. With the extra cash from the monthly recurring revenue of that customer, you can reinvest in your company to grow it faster. That’s why Siu emphasizes the importance of getting your pricing right. In fact, he says if he could go back to his Treehouse days, he would increase prices. The Single Grain Salvage Before he even hit the one-year mark with Treehouse, Siu set his sights on the next rescue mission: a failing SEO agency where Neil Patel was a partner. Armed with the marketing chops he honed at Treehouse, Siu was up for the challenge. “But going to a company that I thought had a lot of problems,” he says, “that I thought was a house of cards, that I thought was going to be in big trouble—that was a different challenge.” And even though he wasn’t thrilled to return to the agency world, the gamer in Siu saw it as a fun opportunity. “I thought the challenge of saving a stagnant company was really interesting because...I just see every challenge as, like, the game, right? It's just fun to play.” At the time, Single Grain was an SEO agency with four partners. When Siu came onboard, he says the company was doing about $1.1 million a year, relying completely on SEO services, mainly link building for clients. But then the Google Penguin update happened, decimating Single Grain’s efforts. “The work that the company was doing was no longer having an effect,” Siu says, “so customers just started churning left and right, and that's when we had to basically make a change. And that's when I popped in.” But Siu had his work cut out for him. This time around, it wasn’t just marketing. He was in charge of operations too, and the company needed to get some processes in place. “Basically, when I came in, everything was on fire.” Siu had to lay some people off because their roles were no longer relevant after the Google update. He then turned the company’s efforts to content marketing as the next logical step. Upon a recommendation, he hired a head of content marketing, which ended up being a mistake. “This person was actually really toxic and caused four of our clients to leave,” he says. After that, two employees quit and morale was low. Even though things had gone from bad to worse, Siu hung on. The $2 Buyout So let’s take stock of just where Siu was at in 2013: He was hired to resuscitate a dying company, he had to lay off employees, he hired the wrong person for a key role, his employees’ morale was low, and oh yeah, he had to take out a personal loan just to make payroll. “I didn't know what the hell I was doing,” Siu says. “And I think a lot of times when it comes to business, or just when you're starting out, honestly, I think it's okay to say you don't know what you're doing.” And then, leadership started to cave. One of the partners admitted to Siu that he wanted out, and the other three agreed that the company was worth nothing. While this easily could’ve been the end of Single Grain, Siu had an idea. “I said, ‘Hey, guys, I will buy the company, I’ll take on the load, I'll put it on my shoulders, I'll see what I can do with it.’” He offered one dollar to Neil Patel and one dollar to another partner, for 10 percent of their shares in the company. The other two partners, he offered to pay with profits from the company. “So it's a buyout, but the contingency is if the company fails, I will owe nothing. So we signed that agreement, got it done, and it was off to the races,” Siu says. He had his work cut out for him, as the company was in the negative when Siu took over; plus, its source of leads, Neil Patel, was now gone. Meanwhile, as everything seemed to be falling apart, Siu continued to try to grow a podcast, Growth Everywhere, spending six hours a week recording and producing the episodes. One year into it, he was getting only nine downloads a day. But again, he powered through. “Here's the thing,” he says, “you just keep going, right?” Now Growth Everywhere gets up to 80,000 downloads a month. Plus, it turned out to be a great lead generator for Single Grain. Slowly but surely, Single Grain began gaining leads through organic search. Siu decided to refer those leads out and worked out referral deals with agencies, getting 25 to 30 percent of the lifetime of each customer. Siu says the referral income generated about $250,000 to $300,000 a year, but he wasn’t satisfied. “The kind of competitive spirit in me is like, ‘Okay, I wonder if we can build this thing up to be a paid advertising agency.’" So Single Grain started experimenting with taking on its own clients and noticed retention went up, and clients were happier. Traffic was coming in from the podcast, organic search, and speaking events. Today, the company has 34 people working at an office in downtown L.A. The Single Grain website has gone from 4,000 visitors a month to about 80,000, and Siu believes it will reach half a million fairly quickly. Content Marketing Is King Take a look at Single Grain’s website, and you’ll see big client names such as Intuit, Amazon, and Salesforce. So what’s Siu’s secret for snagging premium clients? “Every single client that we have, whether it's a Uber or Lyft or TrustPilot, or whatever it is exactly, all came from content marketing.” In fact, up until recently, Single Grain didn’t even have an outbound team. In the past, Siu says people from his management team have challenged him on the amount spent on content marketing, asking to see the ROI. So he did a breakdown of each client to see where they came from: podcasts, organic search, relationships Siu built up with people, and speaking opportunities. “It was all basically content marketing.” When clients come through inbound or content marketing, Siu says, the sales cycle is much shorter than with outbound. Instead of waiting months for a deal to close, the time is cut down to weeks. In addition, the lifetime value of that client is longer, because after reading your blog posts, listening to your podcasts, and watching your videos, they feel like they know you. That leads to a longer-lasting relationship. Another note Siu adds about client acquisition is that it pays off to specialize. At first, Single Grain focused on paid advertising for SaaS and education companies. They were able to boost their prices based on their specialty and proven framework. “If anybody's trying to sell anything,” he explains, “when people ask you how you're different, the more you can niche down, at least in the very beginning, the more you can charge premium prices and the more you can focus in and maybe grow faster.” Smooth Operator Most of the employees at Treehouse were remote, so when Siu took over Single Grain, shutting down the San Francisco office and transitioning to a remote company seemed like a no-brainer. But as Siu puts it, it’s one of the “massive mistakes” he made. Without having built up a rapport with his team and without understanding the relationships they had with each other, Siu says he shouldn’t have made an executive decision of that size, especially without asking for team input. “That totally devastated the culture, in my mind,” he says. “And I think when it comes to a services-based business, like this, where it requires a lot of creativity and collaboration, it's tough to have a completely remote atmosphere.” So Siu shifted to a hybrid method: He and the team work in the office three days a week and remotely two days a week. “I just know that when we're in the office…we can just get so much done that way.” To maximize productivity, Siu uses these two tools: 15Five is a performance-tracking software that allows continuous feedback among your teammates. Grounded in positive psychology, it lets you see how people are feeling on a scale of one to five. It also allows employees to set priorities, report what they did for the week, and give each other high fives. “We can see how engaged people are. And that's one of the main core drivers, because 15Five allows us to see, even if you're filling out a five every single week...we can see in your answers, we can read between the lines to see how you're really feeling.” Hubstaff is a time-tracking software that takes screenshots of each employee’s computer at random. “So here's the thing,” Siu says, “I don't like time tracking. But as an agency, service-based business, you kind of have to track your time to see how profitable you are per account.” And though he sees Hubstaff’s features as a bit “big brothery,” Siu says, “I personally don't like that kind of stuff, but I think it's really important, especially if we have contractors, from time to time.” In addition to those tools, Single Grain has one-on-ones, as well as traction meetings with each team. “That's helped make us into a well-oiled machine,” Siu says, “and everyone's much happier now.” Eric Siu’s Tips for Hiring Great Talent When it comes to tapping into new talent for the team, Siu’s got a process worked out for that too. Establish core values. Even though people think it’s cliche, establishing what your company’s core values are before you begin hiring is essential. Assign homework. For new hires, it’s important to assign a tryout exercise. “It shows at the end of the day how serious they are about doing it.” Single Grain uses an applicant tracking system called Workable, where people can comment on it. Conduct one-way video interviews for more junior roles. Siu uses Spark Hire to conduct one-way recorded video interviews. “Because the thing is, with a lot of junior roles, you're going to get a lot of noise. Through a video interview, it's more asynchronous, so I can look at it whenever I want, or my team can. Or if it's a salesperson, we'll run them through a test called Objective Management Group, which has been fantastic.” Own the hiring decision. Siu always makes sure to be at the tail end of the interview process. “So whether it's an intern or anybody else, even if it's a remote person, I get to talk to the person,” he says. “I get to make the final call. Because then I can kind of own the decision at the end and say, ‘Hey, it's ultimately my fault if something goes wrong.’” Check those references! Yes, Single Grain does check references, and Siu judges the quality of the candidate based on this question: Are the first three references really excited about this person? Siu says he’s even been in a situation where he was about to make an offer but pulled it last minute because of the result of the reference checks. “We dig a little deeper, and we find out: can’t do it.” Leveling Up: What’s Next for Single Grain Never one to slow down, Siu’s already working on his next big projects. Right now, Single Grain is working on a SaaS product called ClickFlow, which helps companies get more organic traffic by boosting organic click-through rates. On top of that, he’s writing a book, entitled Leveling Up as a nod to his competitive gaming days. “I just see this entire thing as a game,” he says. “Just plugging things together, making systems work, making it all happen.” Once the book is ready, he hopes he can use it to educate people on marketing and maybe even recruit talent to his agency or others. Siu also plans to do more live events and add an education component to his company. “I think it all kind of plugs in together,” he says. “And I think the ultimate goal is just to give back and invest in education, because that's what I love.” Key Takeaways: What payback periods are and why understanding them is integral to scaling any business How Siu bought a failing company for $2 and turned it into a powerhouse digital marketing agency Siu’s most powerful strategy for snagging premium clients (it’s not a sales team) The top tools remote companies can use to maximize productivity Siu’s best tips for hiring great talent
Wed, 06 Jun 2018 - 733 - 186: TaskRabbit Was Ahead of its Time, But Leah Busque’s Vision and Persistence Made it a Game-Changer
No Task Too Big Leah Busque launched TaskRabbit and became a pioneer in the sharing economy. Now she wants to empower other founders as she transitions to venture capital. Picture this: You’re sitting at home on a February night in Boston, where winter temperatures dip well below freezing, and it’s snowing outside—not exactly a good time to find out your hundred-pound Labrador retriever is out of dog food. So what do you do? Do you don your boots and trek through the snow in pursuit of kibble? Do you ask your spouse to do it? To a 28-year-old Leah Busque, the solution should have been simple: Why not hire someone in the area to run that errand for you? “[My husband and I] were certain that there was someone in our neighborhood that'd be willing to help us out,” Busque recalls. “Maybe even someone at the store at that very moment, and it was just a matter of connecting with them.” After some geeky brainstorming with her husband, Busque grabbed her iPhone—it had come out a few months before—and bought the first domain that came to mind: RunMyErrand.com. Four months after that, she left her job as a software engineer at IBM and locked herself in her house for 10 weeks to build the first version of the site, all because a service she wanted didn’t yet exist. Thanks to Busque’s creativity and persistence, now it does—TaskRabbit. Think Big, Start Small: From Back Bay to the Bay Area In September 2008, RunMyErrand launched in the Boston neighborhood of Charlestown, where Busque was living at the time. “I was very targeted,” she says. “[I] really wanted to focus on one geography and create a peer-to-peer-network in that geography that was liquid, that would have high supply and high demand … and from there it just really started to snowball.” Word traveled fast. People in Charlestown started telling those in Beacon Hill about this new service that let you hire locals to run your errands. Word traveled from Beacon Hill to the residents of Back Bay and Cambridge. Soon enough, Busque was recruiting Taskers from all over the city of Boston. By the summer of 2009, Busque was invited to participate in an incubator program run by Facebook, leading her to change the name from RunMyErrand to TaskRabbit before launching in her second market—San Francisco. A Pioneer in the Peer-to-Peer Sharing Economy Here’s how TaskRabbit works: First, you post a task on the platform (mobile or web), such as, “I need help mounting a 32-inch flat screen TV on my wall.” Next, you get matched with vetted Taskers in your area, and you can view their ratings and hourly rates. Then, your chosen Tasker shows up, completes the task, and gets paid securely via the app. A simple enough idea for any smartphone user today, but you have to remember that TaskRabbit launched in 2008; most people were still rocking flip phones, and the term “sharing economy” hadn’t yet made it into the consumer vernacular. “These technologies were so new and so emerging, it wasn't an obvious thing to be able to utilize your mobile device to connect with people in real time,” Busque explains. “Certainly, no one was going to jump into a stranger's car off the street and grab a ride with Lyft or with Uber. And so the consumer mindset was completely different. Trust was a big barrier. Letting a stranger into your home to hang shelves, or hang curtains, or clean your house—these were all very big decisions that the consumer was making.” It’s been almost a decade since TaskRabbit’s inception, and the company’s come a long way from that neighborhood in Boston. The service has expanded to about 40 markets (including London), raised more than $50 million in venture funding, and last year was acquired by Swedish furniture giant Ikea. According to Busque, TaskRabbit gets more than 15,000 applications every month from people who want to be Taskers. And on the buyer side of that marketplace, people have hired Taskers to do errands as varied as waiting in line at a store, rushing a passport to the airport, and even retrieving keys from the bottom of a lake. Knowing When to Quit, and When to Keep Going As an entrepreneur, it’s important to know when to quit. Failing to realize an idea is a dud can lead to overspending and wasted time. So we had to ask Busque, especially given the novelty of the idea when it first launched: Did she ever feel like giving up? “I’m not someone who gives up,” Busque says. “I’m not someone who quits.” Given the dismal economy during TaskRabbit’s early days, one would have understood if she had. When Busque launched the first version of the site in September 2008, subprime lending had tanked the housing market and the stock market was crashing, ushering in the Great Recession—not exactly the best time to be quitting a steady job, or starting a business, or seeking investors. But still, Busque pressed on, choosing to bootstrap her startup for almost a year. “We had a mortgage on our house and we had bills to pay,” Busque recalls. “We basically did the math and thought, 'We've got about six months where I don't need to work. I don't need to take a salary to kinda make ends meet.'” When six months came and went and TaskRabbit still didn’t have an investor, it must have been difficult not to close up shop right then and there. “We were so close though; I felt like I was on the brink of something every day. I thought, ‘I just need 24 more hours, 48 more hours, one more week.’ And so every day was a question [of], ‘Should we keep going? Should we call it?’” Thankfully, Busque didn’t call it quits. In December 2008, three months after she had missed her self-imposed deadline to raise funding, Busque closed her first angel round of $150,000. That funding was enough to carry her fledgling business through to the end of 2009, when she raised a seed round of $1 million. As an entrepreneur, it’s just as important to know when to keep going as it is to know when to quit. Before You Automate, Do it Manually As Y Combinator co-founder Paul Graham says, “Do things that don’t scale.” In his famous 2013 essay on this principle, Graham writes, “Startups take off because the founders make them take off.” “I definitely had to do things that weren't going to scale over the long term,” Busque says. In the early days, for example, Busque could often be found zipping around Boston on her little Honda scooter, completing tasks on her own. “I still am the master TaskRabbit,” she laughs. That firsthand experience as a Tasker proved invaluable, as Busque got to know her customers and gained a deeper understanding of how her service fit into the marketplace. That willingness to dive in and get her hands dirty proved to be a hallmark strategy for the founder. “Even as the company developed … I would say one strategy I used that worked pretty well was figuring out how to do things manually first, to really, really understand what to build, how to make it more efficient, and then start to automate layers on top of it over time.” Take TaskRabbit’s application process, for example. The first version involved an online application, an in-person interview (to start the site, Busque conducted 30 interviews herself over coffee in Boston), and a background check. In total, that highly manual process took three to five days. “But the time we spent,” Busque says, “for instance, doing in-person interviews, really helped us to understand what was important in finding the right Taskers, in the highest quality, most consistent Taskers. And so we then, from those in-person interviews, would figure out what questions we needed to ask, what the indicators were early that this Tasker was going to perform well on the platform.” Now? Every piece of that process is automated, and a Tasker can be onboarded in a matter of hours, not days. How to Get Comfortable With Competition Every founder knows that sinking feeling of learning a new business similar to yours is entering the marketplace. Maybe it’s why entrepreneurs are notorious for guarding their ideas with intensity, fearing one slip-up will allow a competitor to crush everything they’ve built. But the fact is, if you’ve got a good idea, someone else is either already doing it, or will be doing it soon. After nearly a decade in business, TaskRabbit has seen its fair share of competitors. At first, this rattled Busque’s nerves. “I remember early on stressing out a lot about the competition, but I think what I learned over time was that I just needed to stay focused on what we were building.” What inspired her shift from flustered to focused was seeing so many competitors rush in and then quickly fizzle out. “I would see competitors come out of the gate, raise multi-millions of dollars, tens of millions of dollars, and burn through it in 18 to 24 months. And so after that happened a couple of times, I just realized that I was going to play a long game.” What was TaskRabbit’s competitive edge? “From day one, we were producing revenue,” Busque says. “From day one, we had positive operating margins. So for every job that went through the site, we were always making money on it. And we had to be very disciplined about how to build a platform that operated that way.” She also thinks that too many of her competitors caved to marketplace and investor pressures, something she as a startup founder was not immune to. “I remember getting a lot of pressure even from my investors at one point in the company's life cycle about growth, about the competitive landscape, pressure to move faster, to copy whatever it was that they were doing, but I knew my business better than anyone.” Repeat After Her: ‘This Is Not Rocket Science’ Many aspiring entrepreneurs let what they don’t know become a stumbling block to launching their businesses. But for Busque, what she didn’t know, she knew she could figure out. She recalls a conversation she had with herself just before leaving her job at IBM to pursue TaskRabbit: “I was thinking about all the things that I didn't know how to do. I was thinking, ‘All I know how to do is build this product. I’m a coder; I know how to code. I don't know how to raise money from investors, I don't know how to hire, I don't know how to fire, I don't know how to build a financial model.’ And then I realized that, to me it sounds funny, but I remember saying to myself: ‘This is not rocket science. … Just go figure it out.’” Busque cites confidence as a key requirement for every successful entrepreneur. “As an entrepreneur, you're doing something that no one's ever done before, and you're going to have to innovate and build new things in new ways.” Another key entrepreneurial quality? Adaptability. And having gone from engineer to entrepreneur to investor, Busque clearly has that in spades. Though she studied at a women’s liberal arts college, she works in the mostly male tech industry. Though she’s highly analytical and majored in math and computer science, she appreciates the arts and minored in dance. “The appreciation of those other aspects has really aided me in being able to adapt, and learn quickly, and jump into new situations, and have the confidence that I'm going to be able to figure out and learn whatever I need to as fast as I need to.” From Founder to Investor In 2016, Busque stepped down as CEO of TaskRabbit, and in September 2017, the company was sold to Ikea. (Interestingly, in a TEDx Talk six years prior to the acquisition, Busque said the most popular task posted on the platform was Ikea furniture assembly.) “TaskRabbit is my first baby, my first child,” she says. “The one thing that you would hope for your child or for your company is that it has a full life, right? And is happy, and grows up, and moves on from you. And so I feel very fortunate that I got to be on that journey and see that happen all the way through.” Even after the acquisition, Busque has her feet firmly planted in the startup world. She serves as executive chairwoman at TaskRabbit and has transitioned into the role of investor as general partner at Fuel Capital, a seed-stage venture fund in San Francisco. It’s a natural transition, given her background as the founder of a venture-funded startup. “Building things has always been my passion,” she says. “I love the early stages of a company, when there is a seemingly impossible-yet-pressing problem to solve. I couldn’t be more excited to work closely with early-stage founders and their teams as they take on world-changing ideas—much like I did during my early days at TaskRabbit.” Given her years of experience building a peer-to-peer marketplace, Busque as an investor has chosen to focus on consumer businesses and marketplaces. “I’ve also focused my attention on meeting and supporting the ‘outsiders,’” she says, such as women founders, those who don’t fit the typical mold, and those who aren’t based in Silicon Valley. “It’s been awesome to meet so many awesome entrepreneurs who don’t look like the typical founder. … I certainly didn’t!” Her new role and focus couldn’t come at a better time. According to the Crunchbase “Women in Venture” report, in 2017, only 6 percent of all seed dollars went to female-only-founded startups, while male-only-founded startups received 83 percent of all seed dollars. Those figures have remained remarkably static since 2012. Busque’s first investments reflect the type of impact she hopes to make. Werk is a women-founded career platform helping women find flexible job opportunities. Feather is a Brooklyn-based startup that provides affordable furniture rental with quick delivery. “As I thought about what I wanted to do next, I just started getting pulled in the direction of venture from a lot of different angles,” Busque says, “from investors that I highly respect, from friends that were in the industry, and so I made the decision that I wanted to do investing full time as the next stage of my career.” And if the previous stage of her career is any indication, there’s no task too big for Busque. Key Takeaways: The two traits Busque says all entrepreneurs need to have to be successful (it has nothing to do with skills or industry knowledge) The stumbling block that keeps many aspiring entrepreneurs from launching businesses How Busque eventually got comfortable with competitors entering her space Why Busque's "never quit" attitude was the key driver of TaskRabbit's early success
Thu, 15 Feb 2018 - 732 - 293: Square Co-Founder Jim McKelvey on the Connection Between Art, Innovation, and Entrepreneurship
Jim McKelvey needs to solve problems. “It’s not about money. It’s not about recognition. It’s not about anything you can measure. It’s just this burning need to fix something.” That burning need is what sparked the ideas for all of his startups, including the massive small business payments company Square, and now his current project, Invisibly. “I look for a problem that I care about,” McKelvey says. “I look for something that bothers me, something that angers me, something I will get up and bend my life into a pretzel to solve.” In fact, the problem that became the catalyst for Square—which, by the way, has grown to a $34 billion market cap—evolved from McKelvey’s first profession as a humble glassblower. That same unstoppable drive is something he’s seen in so many successful startups around the world, and it’s now the subject of his new book, The Innovation Stack. Someone sees a problem and, without experience or previous knowledge, they set out to solve it. For McKelvey, this is what true innovation is all about. Mira Publishing: Turning Failure Into Opportunity McKelvey’s first company, Mira Digital Publishing, solved two problems, actually. First, McKelvey wanted to create image storage and recognition software, something that was still in its infancy when he founded the company in 1990. Second, he needed a way to break out of his own rut. He had graduated from Washington University in St. Louis in 1987 with degrees in computer science and economics. At 19, he’d published a textbook called The Debugger’s Handbook: UCSD and Apple Pascal. But after he graduated, he was running at what he calls a “high level of mediocrity,” freelancing for IBM, blowing glass, and running a company that built storage cabinets for CDs. In 1989, his mother died suddenly, and it made McKelvely reevaluate his priorities. “I just asked myself, do I want to be mediocre at everything? And so I decided that one of the things I had not done in my life was focus.” So he gave up IBM and the CD cabinets (but not his glassblowing) and focused on starting Mira. Unfortunately, Adobe released Acrobat in 1993. “We got our heads handed to us by Adobe. … It was a giant mess.” But while their imaging software failed, some good still came out of it all. That’s when McKelvey met Jack Dorsey, the future co-founder of Twitter. The Entrepreneur and the Artist McKelvey is a trained glassblower, who has even written a textbook on the subject. In the past, he’s used his studio to support himself while working on his startups. “The cool thing about making a physical product is that you can do it whenever you want. So I could work on my technical companies during the day and head into the studio at night, make a bunch of work and stick it in galleries and make enough money to survive.” For him, art and entrepreneurship go hand in hand, not just because one can fund the other, but because they are parallel endeavors that achieve the same outcome. McKelvey says he uses an archaic definition of the word entrepreneur, which broadens its scope beyond merely starting a company. “The original meaning for the word entrepreneur was this crazy person who did stuff that hadn’t been done before.” Square: Starting With a Problem Dorsey started as an intern at Mira, and the two developed a bond that held fast over the years. After Dorsey was forced out of his position as CEO of Twitter in 2008, he reconnected with McKelvey and they decided to start a business together. They just had no idea what that business would be. They brainstormed together and came up with a few ideas. They knew they wanted it to be something mobile. They started looking into a journaling app, until another idea came to McKelvey while in his glassblowing studio. He tried to sell one of his glass pieces to a customer who wanted to charge it to her American Express card. But Dorsey couldn’t process her credit card. He lost the sale. “And so I called up Jack with the iPhone that I had in my hand and I said, ‘Jack, you know, it’s really stupid that this iPhone that does everything that I want it to do—it becomes a television, it becomes a book, it becomes a radio, a compass—but it couldn’t become a credit card machine. And this is stupid. We need to fix this.’” And so, they came up with Square. They originally wanted to serve artists who couldn’t take credit cards or receive electronic payments. “The tough thing about being an artist is, I make stuff nobody needs. Like, nobody has ever needed anything that I’ve made in the glass studio. So, you better be ready when they’re ready to buy and not make it too difficult for them.” The challenge Square faced was serving a community that didn’t have the typical business setup. “These little guys who didn’t have credit reports. Some of them didn’t have bank accounts. Some of them didn’t have credit scores. Some of them didn’t have mailing addresses. I mean they were weird outliers to the financial system.” Even some of their bigger customers were still too small by the standards of the industry to process credit cards. So, they were forced to reinvent the entire process, from signup to hardware to pricing schemes. And for McKelvey, that’s where real innovation comes from, when you are forced to improvise. “Invention is something that has to almost be forced upon us. And people get inventive when they have no other choice.” The Innovation Stack A few years after Square launched, McKelvey and Dorsey learned that Amazon had launched a small business payments service that was nearly identical to theirs. For the second time, McKelvey thought he was done. But then, an amazing thing happened. About a year later, Amazon shut down their service and sent all of their former customers a Square reader. For a long time, McKelvey couldn’t figure out how they had survived a direct attack from a giant like Amazon. “I was like, well what’s special about us? What did we do to be still standing after Amazon comes after us? And I couldn’t answer the question.” He talked to former executives at a number of companies Amazon had directly targeted. Some of them sold to Amazon, while others went out of business. None had survived. “I was happy we won, but I couldn’t answer the question, why did we win? I knew we’d won, but I’d like to think it’s more than just luck, but I just couldn’t explain it. So I went on this two-year quest to figure it out.” McKelvey found that Square wasn’t actually alone. Many companies had survived direct attacks from large competitors, and they all had one thing in common, what he calls the “innovation stack.” He describes the innovation stack as a series of interlocking inventions that create something you can’t attack. Instead of one big innovation, the companies that survive are innovative in several ways that all contribute to the overall success of the company. And that series of innovations is almost impossible to copy in their entirety. For Square, it was easy to copy the hardware, but that was just one of 14 different innovations that made the company different in the online payments field. “So I talk about 14 things that we did differently. Every one of those was necessary for the system to work. So, if we’d done 12 and we hadn’t done the 13th and 14th, Square wouldn’t have worked.” One of the 14 was their system for handling fraud. Since Square is a company that handles online payments, McKelvey says, it got hit from day one. Three years later, when Amazon came out with its product, Square had already developed unique processes for dealing with fraud, something Amazon couldn’t replicate. But, McKelvey says, even if every aspect of a company’s innovation stack is visible, it’s hard for large companies to copy it all successfully. Why? “Organizational culture,” he says. When a startup comes along with a new way of solving a problem, it’s difficult for a well-established brand to pivot, to change its ingrained processes to compete. His example is Southwest Airlines. They revolutionized the boarding process, turning a 45-minute process into a 10-minute one. And they did it by rethinking the whole process, right down to cleaning the plane. With Southwest, even the pilots helped clean the cabins before boarding new passengers, something McKelvey says United or Delta Airline pilots would not be willing to do because they were already used to a certain organizational culture. Because Southwest was new, they could set their own culture. “Let me tell you that the Southwest pilots, you didn’t become a Southwest pilot unless you were willing to play their game.” McKelvey writes about Southwest and several other companies who shook up their industries in his new book, The Innovation Stack. No Experience Needed As he researched his book, McKelvey noticed something else about these innovative companies. Companies from Southwest Airlines to the Bank of Italy all began the same way he did—by solving a problem for a previously ignored segment of the market and having no idea how to do it at first. He came to the realization that starting a business isn’t about the market needs, but rather the needs of a small, even fringe group of people. “I don’t think you should choose a big market. I think you should choose a big problem,” he says. From Southwest, which figured out how to make flying affordable, to the Bank of Italy, which started out giving loans to farmers and immigrants when other banks wouldn’t, they were all sailing in uncharted waters. And because of that, none of their founders had any kind of expertise in their field. “I looked throughout history and I saw all these people who had basically no qualifications for what they did.” That included himself and Jack Dorsey. While McKelvey holds two degrees, he finds neither relevant to what he does today. As for Dorsey? “So, like, Jack’s professional credential, he has one professional credential. He is a massage therapist. I mean, you’ve got a glassblower and a massage therapist and they start a payments company. We knew nothing about payments. We didn’t know a thing.” The Innovation Continues McKelvey still sits on the board of directors for Square, but his focus is now on his new startup. With Invisibly, he wants to change the way publishers monetize their online content. The current model, where ads pop up in the right rail, across the top of the page, and even on top of the content you’re trying to read is infuriating to McKelvey. “Our attention is being bought and sold without our permission or knowledge. So when you watch something or read something, you’re essentially trading your attention to advertisers in a system that is largely biased against you, and in many ways subverts your interests.” And, he says, ad blockers are not the solution, which is essentially saying to journalists, “Starve to death, guys, because I’m not paying anything.” So he and his team at Invisibly are working on a way to allow users to control the ad experience. McKelvey has also founded a nonprofit called LaunchCode, which trains programmers for free and helps place them in jobs. Oh, and he’s also a deputy chairman for the Federal Reserve in his hometown of St. Louis. McKelvey has built his success by solving problems. “If you have a problem that has never been solved, man you probably want me around.” And he’s seen other people create world-changing companies by doing the same, and by building innovation stacks that all but guarantee their success. He looks at entrepreneurship, not as the process of starting a business, but as an art form, a means to bend and mold an industry to create something no one’s seen before, something that makes life a little better for everyone. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Laurie Mega Key Takeaways Why McKelvey believes he was running at a “high level of mediocrity” early in his career, and how a family tragedy shifted his priorities The launch of his first company, and why it ultimately failed McKelvey’s unique background as a glassblower, and why he believes art and entrepreneurship go hand in hand How McKelvey and Jack Dorsey came up with the idea for Square How Square survived a direct attack from Amazon How the answer became the inspiration behind McKelvey’s latest book, The Innovation Stack: Building an Unbeatable Business One Crazy Idea at a Time How McKelvey plans to continue solving problems with his newest startup, Invisibly, and his nonprofit, LaunchCode
Wed, 18 Mar 2020 - 731 - 292: From LearnVest to Inspired Capital: Alexa von Tobel’s Mission to Help People Find Financial Stability
We’ve all heard the motivational mantra that if you love what you do, you’ll never work a day in your life. But Alexa von Tobel sees things a little differently. “If you love what you do, you’ll work every day of your life,” she says, “and it’s because I’m so passionate about what I’m doing.” The mission that gets von Tobel jumping out of bed every morning is one that impacts every one of us—finding financial stability. Without it, whether you’re a working family or a creative new startup, it’s near impossible to plan for the long term and ultimately thrive. Von Tobel came to this understanding after graduating from Harvard and beginning a career on Wall Street, when she realized that, while she was great at managing the business finances of others, she was woefully unprepared to manage her own. And she quickly discovered that she was not alone. That lit a fire underneath her to improve financial education, inspiring her in 2008 to launch LearnVest, a digital financial planning business that teaches investment and finances. The award-winning company became wildly popular, especially among women. She ended up selling that business, but in 2019, van Tobel decided to take her passion for financial advising in a new direction. Today, she manages Inspired Capital, a $200 million investment firm that’s supporting early stage startups. This massive new undertaking is all rooted in van Tobel’s desire to support ambitious entrepreneurs and help people achieve financial stability. That, and a deep love of math. Freedom to Think Bigger Von Tobel says she was an entrepreneur from day one. She’s always been drawn to the toughest problems, outside-the-box thinking, and bringing joy to others. And when she recognized her own problem with managing her personal finances, she suspected that this could be a cause worth taking on. Von Tobel says that 78% of all Americans live paycheck to paycheck and that the average person doesn’t even have $400 in a savings account. And the crippling anxiety that comes from mountains of debt and living one medical crisis away from going broke? She firmly believes it holds people back from concentrating on something bigger. “If you’re living for tomorrow, you can’t think long term,” she says. Despite her lifelong love of math and her driven personality, she’d never been taught how to manage her personal accounts, invest her money, or plan for retirement. It became clear that many of her peers had not either. “I think it’s insane that it’s not taught in every high school, college, and graduate program in America,” von Tobel says. “I mean, it’s not that dissimilar to basic hygiene.” From von Tobel’s perspective, money is a basic lifeline that enables people to care for themselves. Therefore, she believes everyone should learn how to intelligently manage it. That’s what drove her during her years as founder and CEO of LearnVest—the unwavering belief that financial education was a key to happiness. “If you can create real financial stability for a family,” she says, “you can help a family thrive.” Among the strategies she taught through LearnVest were how to grow a successful savings account by setting aside 20% of each paycheck, no matter what, and the benefit of establishing firm ground rules for financial health. She taught when to begin investing (yesterday), preparing for retirement (the day before yesterday), and how to plan effectively for the ebbs and flows of life. But what about the people (like, oh, I don’t know, the writer of this article, for instance) who are deeply terrified of math? Von Tobel says that’s not a problem. “Personal finance is basic math,” she assures. “It’s not complicated math. It’s really straightforward math—what comes in, what goes out, is there something left, and are we saving it properly? Really, it’s more organization than math.” After more than a decade spent as a financial educator and the sale of her business to Northwestern Mutual in 2015, von Tobel decided it was time to give something new a try. And when her husband pointed out how many hours she had spent financially advising entrepreneurs for free, she realized she may have inadvertently stumbled upon her next big project. Shooting for the Moon Inspired Capital was born from von Tobel’s passion for financial education, combined with her desire to help entrepreneurs reach their goals. The result is an early stage and seed investment firm, driven by women (also led by former Secretary of Commerce Penny Pritzker) and funding startups nationally. Von Tobel now meets with at least 75 founders each week in pursuit of new investments of all shapes and sizes. From tech to product-based business, von Tobel is interested in all of it, provided they have a good idea and a plan. She says that the best founders who have pitched her get to know her firm before reaching out. They also don’t get discouraged by rejection. Von Tobel says that just because it’s a no today, doesn’t mean it’ll be a no tomorrow. And while founders are waiting for their yes, von Tobel says there are many things they can invest time in learning. She says that the biggest mistake she sees founders make is running away from the aspects of the business that make them feel inadequate, passing it off to others before even giving it a try. “I think it’s the typical kind of head-in-the-sand ostrich move,” she says. “You’ve got to lean into the things that make you nervous.” She believes this is what enables businesses to address issues before they reach critical mass, while also making founders feel capable and bold. “If you want to build a really good business—if you want to get really good at being an entrepreneur—you’ve got to get good at everything,” she says. “And I don’t mean you literally have to hold every job, but you have to take the job, get pretty darn good at it to the point where then you know how to hire for it, and then you can pass it off to somebody better at it.” Once the machine of a new business really starts whirring, von Tobel says that it’s essential to have an eye on building up the reserves. “You want to make sure you are never within nine months of running out of cash,” she says. “Because if you need to go fix that, putting a plan together to go fix that can sometimes take three to six months, and you don’t want to be in a position where literally you can run out of money.” While she acknowledges that smaller businesses can get away with slightly less in the bank, she wouldn’t recommend leaving the stability of a company to chance or dependent on a tight timeline. And ultimately, von Tobel believes these healthy savings accounts are what embolden business leaders to take new and exciting risks. “I’m not risk-averse,” she says. “I shoot for the moon, but I have a plan B that has enough cash...that gives me enough confidence to shoot for the moon. Having a good solid financial plan gives you the comfort to take more risks.” And the best part of all is that von Tobel believes there’s never been a better time to launch a business than right now. “Every year it gets less expensive to stand up a company,” she says. “Every year there are better online resources to make it easier to do.” From free online resources to highly affordable software for startups, she says founders need only do a light Google to find a flood of resources at their disposal. As an investor passionate about the startups and founders of tomorrow, she can’t wait to see what thrilling new business plans come across her desk next. And that’s why she encourages struggling founders to keep pushing, keep growing, and keep pursuing their dreams. “You’re building something new. You’re building something special that serves a purpose,” she says. “And that’s pretty powerful.” Alexa von Tobel’s Tips for Building a Successful Business Get the product right first Von Tobel says that entrepreneurs can be distracted so easily by the task of building a business and marketing a product that they forget to perfect the product. Talk to the customers. Find out what works and what doesn’t, and make adjustments. Before diving headfirst into marketing a product, she reminds entrepreneurs to really nail product-market fit. Begin by stoking word-of-mouth marketing Rather than sinking tons of cash into a paid marketing strategy up front, von Tobel recommends that founders begin by delighting their customers and encouraging them to share their experiences with the brand. She reminds entrepreneurs that word-of-mouth marketing is free and often more effective than traditional marketing for startups. Wait to focus on paid marketing until revenue is up Once revenue is climbing and there is a little more wiggle room, von Tobel says the time has come to give paid marketing a go. Embrace a constant learning process Above all, von Tobel reminds entrepreneurs that the constant pursuit of growth without fear of negative feedback is essential to success. “I think the best founders are learners,” she says. “They are comfortable with negative feedback. They want to make it better, and they are constantly just listening and learning obsessively.” Key Takeaways Why von Tobel, a Harvard graduate and Wall Street career woman, found herself struggling with her personal finances How this experience drove her to launch LearnVest, a digital financial planning business that teaches investment and finances Why von Tobel doesn’t believe a fear of math should stop anyone from pursuing financial education The sale of LearnVest to Northwestern Mutual in 2015 The mission behind Inspired Capital, an early stage and seed investment firm Why von Tobel wants to work with founders who embrace aspects of business they’re not good at The reason behind von Tobel’s optimism for the future of business
Tue, 10 Mar 2020 - 730 - 289: Understanding the Power of Relationships to Achieve Business Goals, with Contactually Founder Zvi Band
Zvi Band describes himself as an introvert—someone who tends to be inward-looking, generally preferring to spend time alone. At the same time, he’s a successful entrepreneur, writer, and speaker who preaches the importance of relationships. “I actually found that all of my business, and more importantly, all of the amazing opportunities in my life came from, of all things, knowing the right people,” Band says. That may not sound like something an introvert would say, but for Band, human connection is about quality over quantity. He isn’t focused on collecting new friends on social media or passing out stacks of business cards at mixers all over town. Instead, he is focused on maintaining and nurturing the relationships he already has. That, he says, is the key to success. Yes, it’s all about relationships, but in a world of constant connectivity, it’s about focusing on the meaningful ones. “I was in a room of a hundred real estate agents this morning and everyone raised their hand when I asked, ‘Who here thinks their relationships are their most important assets for business?’” The power of relationships is more than a philosophy for Band; it’s his business. His enterprise SaaS platform, Contactually, helps professionals, particularly real estate professionals, build and maintain relationships by automating personal communication. A resident of Washington, DC, he’s been named one of Washingtonian Magazine’s Tech Titans six years running, and has been featured in publications like TechCrunch, Washington Post and USA Today. He’s even written a book on the topic, Success Is in Your Sphere: Leverage the Power of Relationships to Achieve Your Business Goals. Why Are Relationships So Important? Band understands that humans are naturally social creatures, and the biological need for connection translates directly to the business world. He sees that as an opportunity to build success through the support of a professional network. “We rely on social connections and relationships to help keep us safe and therefore help us identify who we should work with,” he says. To Band, relationships are directly connected to reputation, something that has become either an asset or a hindrance, depending on how people view you as a professional. Because the world is so connected, professionals are now competing with other professionals with the same skills on a global scale. The only way to differentiate, he believes, is through reputation. “Because no one can fully copy you. So that reputation and your ability to maintain that reputation ended up becoming us.” How does a good reputation resonate in the business world? Through the relationships professionals build. Band points to a study of banking customers in Germany and the relationship they have with their bank. “They found that when a customer is referred by another customer, there’s a 25% higher contribution rate, so referred customers become better.” Relationships Paved His Own Career Path Band started out as a software developer, eventually leading a team at an intelligence agency. In 2009, he struck out on his own, creating a software design and development firm called skeevisArts. It was there that he started thinking more about relationships and how they can make or break a career—or a company. But he also found that maintenance and development of those relationships was tough. “I would meet people for coffee and two weeks later completely forget who they were. So, a lesson learned for me was, ‘Okay, well, what’s the right thing to do, here? Well, how can I solve this with software? How can software help us build and maintain better relationships?’” And that’s how Contactually started. With the help of fellow co-founder Jeff Carbonella, he developed a platform to organize and automate personal contacts in order to maintain and build relationships that he knew were so critical. They brought on Tony Cappaert as the third co-founder to lead business development. Both Cappaert and Carbonella were connections Band already had. Carbonella was a lead engineer at Band’s consulting firm, and he had gotten to know Cappaert through the local community. He started small, not really thinking about building a company but more fleshing out an idea. They initially decided to focus on real estate agents, who rely heavily on relationships to sell homes and build their business. In 2011, they were chosen to participate in the 500 Startups accelerator program, where they raised their first venture capital. “We quite literally had an apartment with three mattresses on the floor,” Band says, laughing. Over the course of eight years, however, the company has raised $12 million in venture capital. It now has, according to Band’s personal site, “tens of thousands of customers, including eight of the top 20 real estate brokerages in the country.” And Band practices what he preaches. To this day, he uses his own tool to maintain his professional relationships, keep up with current and potential investors, recruit new talent, and stay connected to the media and important influencers. He even used it to develop a relationship with Compass, the national real estate company that acquired Contactually in 2019. “Robert , the CEO, knew me well enough that he had absolutely no problem reaching out to me to say, ‘Hey would you be interested in a potential partnership?’ And that’s an important thing, right? It’s not like companies just get sold overnight.” Band now using all he’s learned about relationship building to mentor a new generation of entrepreneurs. In 2010, he founded MadeInDC, which markets startups in the DC area and helps entrepreneurs get started. He is a co-founder and co-organizer of DC Tech Meetup, one of the largest tech meetups in the country. And he created DC Tech Summer, where over 550 interns apply to work at tech startups in the area. That’s a lot of new, powerful relationships that Band is out there, helping to form. Not bad for an introvert. Key Lessons in Nurturing Relationships Throughout his career, Band has learned some valuable lessons about harnessing the power of relationships. He shared some of them with us. On Starting a Business Band tried to start a few companies before his success with Contactually, while he was still running his consulting firm. None of them really took off, and he realized it was because he was working on his own and only on the side. He wasn’t committing to their success. This was true of nStructo, a backend-as-a-service tool he tried to get off the ground. “With nStructo, we had no customers, we had no users, we had no team. It was just me. So it almost could exist in my head or it could shut down in my head and no one would know and no one would care. And so I knew that I needed to have a team around me.” He realized how much he needed that team to keep him accountable and give him the discipline to invest time in his next startup venture. On Identifying the Right Relationships While cultivating relationships is the name of the game, Band stressed the importance of identifying the right relationships first. To do that, he says, you first have to identify your goals, which will lead you to the right people to reach out to. He learned that the hard way when networking for his consulting firm. “So, for example,” Band says, “I used to think that going to a lot of tech meetups and developer meetups was a great way of doing business.” But Band had to find companies in need of software services, not other developers. “I was looking to work with a lot of design agencies, so I would go to design meetups and pitch myself as a software consultant. I would go to marketing meetups.” By clarifying his goals, he found the right people to reach out to. On Cold Outreach While Band stresses the importance of cultivating current relationships, he does see merit in cold outreach to expand a network. But, he cautions, a generic or overly produced message will fall flat on your audience. “Everyone is used to getting slammed with cold emails,” he says. “Therefore, if you write a cold email that actually stands out, or if you do it via LinkedIn or you do a handwritten card, or something that says okay...this person genuinely wants to talk to me or be of value to me, then I’ve actually found that people are pretty receptive.” Also, he says, make the contact short and sweet. An email, for example should be no more than a few sentences that engage your contact directly. Asking a simple question of your prospect rather than talking solely about yourself can draw them in and send the message that you’re interested in a conversation. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Laurie Mega Key Takeaways How Band’s background in software development and challenges with building new relationships inspired the idea for Contactually Why Band, despite being an introvert, believes in the power of relationships above everything else The connection between relationships and reputation Why Band and his co-founders decided to focus on real estate agents for their SaaS platform From accelerator program to $12 million in venture capital How Band practices what he preaches The relationship with national real estate company, Compass, that eventually led to Contactually’s acquisition in 2019 How Band is using his relationship-building knowledge to mentor a new generation of entrepreneurs A sneak peek into his book about relationship marketing, Success Is In Your Sphere
Tue, 18 Feb 2020 - 729 - 283: Splasheo Founder Gideon Shalwick on Video Marketing, Personal Branding, And Discovering Your ‘Why’
Gideon Shalwick believes there’s one trait every entrepreneur needs, and it’s not persistence, a strong work ethic, or creativity. It’s self awareness. His own desire to better understand himself has led him down a winding road of serial entrepreneurship and self-exploration. It’s what first inspired Shalwick to drop out of the 9-to-5 club early in his career, move to another country with his wife, and start fresh. The pursuit of his true calling led him to publish a successful ebook in 2006, and two years later, develop a blogging training product that boasts over 40,000 subscribers. Meanwhile, Shalwick was also building up a personal brand as an expert in video marketing. But his journey didn’t stop there. In 2012, Shalwick founded video captioning service Splasheo, which has become a major source of passive income. He followed that success in 2014 with Veeroll, a SaaS company that automates the production of video ads for YouTube, Instagram, and Facebook, and now dominates the video advertisement space. While Shalwick saw great success with these companies, he found that tug of self-discovery pulling at him again. He realized he had become so caught up in the startup world that, in the process, had forgotten who he was. So he decided to walk away from the projects he spent over a decade building. Now, he’s in a period of self-rediscovery and is sharing his entrepreneurial wisdom with others while plotting his next move. Starting Over Five years into his career, Shalwick decided to start over, for the first time. He had graduated with an electrical engineering degree from the University of Canterbury in New Zealand and immediately recognized that he didn’t enjoy working for someone else. In an attempt to try another path, Shalwick got his master’s degree in engineering management, which focused more on the people side of business. Still, he felt frustrated by his job. “I don’t think there was any job in the world that would allow me to live out my potential the way that I wanted to, so I felt really stuck,” Shalwick says. He turned to his wife and suggested that they quit their jobs, move to Australia, and start from scratch. At first, the plan was for Shalwick to find a job in Brisbane as their ticket in. But three months later, he still hadn’t found employment. He asked his wife to try applying for jobs as well and, within a week, she had three offers. While this allowed them to successfully relocate, Shalwick still had no idea what to do with his own career. Millionaire Secrets Shalwick began reading books on entrepreneurship, with the hope that they would point him in the right direction. It was Rich Dad, Poor Dad, which talks about the importance of building up an asset, that eventually struck a chord. Shalwick wondered how he could build up his own asset and started to explore a variety of options. He considered everything from franchises to a dog-washing business, but ultimately ended up attending a book-writing course that gave him his first taste of entrepreneurship. In 2006, Shalwick wrote and sold a personal development ebook for $47. The title? Millionaire Dropout Secrets. “I blush when I think about the title, but I have an excuse,” Shalwick says. “The course taught us that titles with the words ‘secrets’ and ‘millionaire’ in it do really well. So I came up with the title Millionaire Dropout Secrets...I wrote it as a reporter, looking at everyone who dropped out of the system and became successful.” The ebook was a huge success. The instructor who taught the course offered to help promote the product to his database of 10,000 people. An email was sent out on a Friday night and, by Saturday morning, Shalwick’s ebook was selling like hotcakes. In fact, he sold enough copies to where he felt extremely optimistic about the idea of selling digital products from the comfort of his home for the rest of his career. Shalwick was on cloud nine. Until one day, his ebook ran out of steam. Video Ventures After the initial rush of sales, Shalwick’s ebook experienced virtually no traffic for two years. Because he had little experience with business building, traffic generation, or customer relationship management, he had no idea how to bring his sales back to life. But Shalwick knew he could learn by tapping into the expertise of others, so he purchased a camcorder and decided to start interviewing people on video to better understand how to set up successful online businesses. Shalwick snagged his first interview at an industry event, where one of the speakers agreed to talk to him. Over time, this was the formula Shalwick used to eventually collect five gigabytes worth of video interviews. He planned to upload them all to a membership site, but before he could launch, the sheer size of the files ended up killing his PC and the project never got off the ground. But all the effort wasn’t for nothing. Shalwick became close friends with one of his video interviewees, and together, they launched a product called Become A Blogger (a course for those who are just starting out with blogging or looking to take their blogging to the next level) in 2008. Within the first two weeks of launching, the business had over 10,000 subscribers and an income of over $20,000 per month. This was life changing for Shalwick, who had been making no money for the previous two years. That business gave Shalwick the exposure he needed to start building up his own personal brand, as he took to YouTube to teach people about building successful video products and online businesses. His channel grew to 36 million views and 360,000 subscribers, and the name Gideon Shalwick became widely associated with the video marketing space. Changing Priorities When Shalwick and his wife welcomed their first daughter in 2010, everything changed. “I realized...what if something happens to me? Then what’s going to happen to the business and income for the family? So I decided I’d better change tactics.” This dawning realization is common for entrepreneurs who build personal brands. Shalwick believes the most important thing is to know yourself and understand the benefits and drawbacks of each type of business. For instance, personal brands are simple to start up, have low overhead costs, and make it easy to build a connection with your audience. But as Shalwick realized, the trouble is that a personal brand can’t survive without its creator. If you have a personal brand, Shalwick recommends looking at other ways to build assets that can run independently of you. This could mean investing your income in other wealth vehicles or creating a separate product or service. That’s the reason Shalwick decided to launch his human-powered video captioning service, Splasheo, in 2012. To this day, it still functions without Shalwick and serves as a passive source of income for his family. A few years later, Shalwick decided to venture into the SaaS space. He initially wanted to set everything up through Splasheo, but decided it would be cleaner to create an entirely new entity based in Singapore. And that’s how Veeroll was born in 2014. This SaaS company was created to automate production of video ads for YouTube, Instagram, and Facebook. The idea came from the nine years Shalwick had spent in the video marketing industry, where he constantly heard about the biggest pain point in the market: the production and editing process. Because this software so directly addressed a source of frustration for video marketers, Veeroll quickly became a leader, and today is a million-dollar company. The Hunt Continues Despite the success of Veeroll, Shalwick decided to sell his shares and walk away from the company earlier this year. Working in the world of SaaS was intensely challenging, he explains, even for someone with a technical background. He recounted the time he reached out to Clay Collins at Leadpages for advice when he first started Veeroll. Collins told him, “There are a million things, and you have to get them all right.” While Shalwick didn’t understand what he meant at the time, he grew to appreciate the truth behind this statement. But it wasn’t just the technical aspects of the SaaS business that were overwhelming. As Shalwick describes, he was also burned out by a high-stress environment, brought on from pursuing extremely aggressive goals. That’s when he recognized how easy it was to get caught up in the wrong things and lose sight of what’s important. So he decided to step back once again, and focus on rediscovering himself. Shalwick has spent a lot of time contemplating his life’s vision. He believes that for each of us, this vision is guided by an “unconscious drive,” what some people refer to as their “why.” He discovered after much reflection that his unconscious drive is for significance. All of his actions had been driven by a desire to prove himself. He was embarrassed by this realization at first, because it felt superficial, but he came to embrace it over time. Now that he understands this reality, he has made an intentional effort to channel his drive from achieving significance for himself into helping others feel significant. For Shalwick, this has been a huge game changer and has made the vision for his life much clearer. “As entrepreneurs, you really have to get to know yourself,” Shalwick says. “Each of us has a unique capability and gift or talent we can give to the world. But it’s conditioned away by society...and it’s a real challenge to rediscover that again. When you can rediscover that and find your true why, then everything becomes a lot easier.” The Formula for Successful Video Ads, From Gideon Shalwick Shalwick uses the AIDCA formula to ensure successful video ads that consistently convert customers. Below is a breakdown of each component of the formula: A = Attention. The first part of the formula is all about grabbing people’s interest with a hook. According to Shalwick, one of the most effective ways to do this is to identify your audience’s biggest pain point then turn it into a question. For instance, if your intended audience is video marketers, you may ask: “Are you struggling with video editing?” I = Intrigue. You can build intrigue with a story of open loops that draws people in and makes them want to keep watching. In other words, create a sense of mystery. This part of the formula relies on the Zeigarnik Effect, which states that people remember uncompleted or interrupted tasks better than completed tasks. D = Desire. Now it’s time to create desire around the solution. Shalwick recommends listing the benefits, features, and differentiators of your product or service to make it more appealing to your viewers. C = Conviction. According to Shalwick, it’s important to provide as much proof as you can so the audience is convinced that the solution you’re offering actually works. This can come in the form of testimonials, social proof, or a stamp of approval from an authority figure. A = Action. Finally, you have to ask people to do what you want them to do. This is where you insert a call to action and guide your audience in the direction you want them to go. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Sophia Lee Key Takeaways Why Shalwick and his wife decided to quit their jobs and start over How he got his first taste of entrepreneurship with an ebook (and why the title makes him blush to this day) Why his ebook sales skyrocketed, then saw virtually no sales for two years Shalwick’s journey to better understanding online businesses How he built his personal brand in the video marketing space Why the birth of Shalwick’s daughter made him reconsider the way he approaches business The birth of Splasheo, and how it became a source of passive income for Shalwick Shalwick’s successful venture into SaaS with Veeroll Why Shalwick sold his shares and walked away from Veeroll The importance of discovering your true “why” as an entrepreneur
Wed, 08 Jan 2020 - 728 - 282: InVision’s Clark Valberg on Unicorn Status, Remote Work, and Creative Risks
How Clark Valberg and InVision are bringing founders’ creative ideas to life, and leading the way for remote workplaces. Clark Valberg can tell you the exact date that his digital product design platform, InVision, launched. It was also his wedding day. In hindsight, it’s telling that Valberg was able to successfully overlap these professional and personal milestones—InVision is known for its culture of work-life integration, with a 100% remote workforce nearing 900 employees. Eight years later, both InVision and Valberg’s marriage are still going strong. When Valberg first launched the platform in 2011, it was meant to be a simple prototyping tool for his creative agency. Today, the company offers a full collaboration suite, InVision Cloud, that has redefined how companies design their products. In addition to collecting over $350 million in funding and a being valued close to $2 billion—officially making it a unicorn—the startup now boasts over 5 million users and is the platform of choice for 97% of Fortune 100 companies, including major names like Amazon, Starbucks, and Uber. Along the way, the company also redesigned the way its employees relate to the workplace, demonstrating early on just what’s possible in a remote company culture done right. A Graceful Stumble Before Valberg was known as the CEO of one of Silicon Valley’s most beloved tech companies, he ran a New York-based creative agency called Epicenter Consulting, from 2003 to 2011. It was a design and development shop that created websites for software companies. However, there was one issue their team consistently ran into when working with clients—incorporating feedback. Valberg found it challenging to bring his clients along on the design journey, which meant that the first time they saw their website or app was after it had already been coded. That made the feedback process difficult and inefficient. This got him wondering: How could his team show designs to their clients earlier and more often? That’s how the idea for InVision came to life. It was created to put all their designs into a platform where clients could see and comment on them — similar to how a Google Document allows multiple people to collaborate within the same project. This was a huge step forward compared to the standard method of sending out designs in PDFs or as screen shots. Valberg had zero intention of turning this product into a standalone business. It wasn’t until someone inside his agency suggested sharing InVision with other companies that the thought even crossed his mind. At first, Valberg resisted the idea. He figured people wouldn’t be open to drastically changing the way they worked with their clients. However, he was eventually swayed and put out feelers to see if people would bite. As it turns out, people were interested. While Valberg was pleased with the response, it still hadn’t occurred to him to turn InVision into a full-time business. After all, his agency was doing extraordinarily well and bringing in $1 million in revenue each year. Again, fate stepped in and a designer Valberg worked with suggested raising venture money. And again, Valberg brushed off the idea. However, the designer persisted and made an introduction to angel investor Daniel Wolfson. Immediately, Wolfson saw the potential of InVision and connected Valberg to investors at FirstMark Capital. From there, a deal unfolded rapidly. All of these events were, as Valberg puts it, a graceful stumble onto the path that he’s on today. By the time Valberg secured his seed round of $1.1 million, users were signing up by the hundreds every day. This was when he realized that he needed to go all in on InVision. His wife took over his agency and successfully ran the business until 2018, while Valberg went through the next eight rounds of funding and elevated InVision to its esteemed status. Ahead of the Curve One of the characteristics that differentiates InVision from other companies is its 100% remote workforce. While the concept is more common now, it was considered bizarre back when the company first launched. The idea originally came about as a talent hack. When the startup was in its early stages, Valberg and his co-founder, Ben Nadel, spent entire days taking engineers out to lunch to woo them into being their first developers. They quickly discovered how competitive the New York talent market was—especially with a behemoth like Google opening up their new office next door. They sat down and asked themselves—what do we have to do over the next six months to be successful? They came to the conclusion that their focus needed to be completely dedicated to finding product-market fit and product development. However, they didn’t have the resources to address either of those priorities with the amount of time they were spending on recruiting. So they decided to hack it. Valberg recalled working with many contractors at his agency. They were extremely talented but lived in far-off places, like Phoenix, Arizona. What if they hired those folks and let them stay where they were? Valberg reached out to the freelancers he worked with in the past and, instead of pitching a job, he pitched a lifestyle. According to Valberg, it wasn’t the remote work that was appealing; it was the shift to life-work integration that his company offered. Valberg recognized that work-life separation wasn’t realistic in today’s society. Instead, he decided to focus on offering a flexible lifestyle that would allow employees to better integrate their work and home lives. The idea resonated. The co-founders hired 10 people remotely in less time than it would have taken to hire two people in New York. “At the time, this was a big, scary idea. It’s a question about trading complexities. We can handle the complexity of this extremely challenging market and end up overpaying for talent that wasn’t necessarily the quality we needed. That feels like a war you can’t win. Or we could figure out this remote thing, which felt like a design challenge,” Valberg says. Clearly, this strategy has been a huge success for InVision. The company is anticipated to reach 900 employees by the end of 2019 and doesn’t have plans to slow down. Valberg recognizes this as an inflection point in their growth, and he remains extremely conscious of the problems that may pop up from scaling, HR, and culture perspectives. However, he believes the advantages profoundly outweigh the challenges—and his team is ready to lean into any they run into. Solving Problems With Bad Ideas At a design-forward company like InVision, creativity is paramount. But even the brightest minds experience slumps and roadblocks. That’s why Valberg and his team have a secret weapon in their back pockets for any time they get stuck in a rut. It’s called “bad version.” This phrase, which has become a cultural mantra at InVision, is a permission slip that says, “What I’m about to say might not be a great idea, but that’s OK.” Valberg says his team uses it whenever they hit a wall during brainstorms. Most of the time, the wall is a result of people holding back their ideas out of a fear of judgment. “Bad version” serves as a catalyst for the creative process and empowers people to share less-than-perfect ideas without fear of judgment. Valberg recalls one time he was in a room with five other marketers, designers, and engineers. They were trying to figure out what to call the new plugin they created for Sketch and Photoshop, and they were stuck. To break the rut, someone said “bad version” and suggested the name Craft. The person who suggested the idea didn’t think it would end up being the name of the feature. But, as Craft users know today, it did. More importantly, it sparked the conversation and allowed the team to consider other options. Valberg uses “bad version” at home with his wife too. He says it gives each other permission to not be right and asks the other person to help expose the best part of their idea. In other words, it’s a way of encouraging healthy conflict. This is a mindset Valberg hopes more people will adopt for work, life, and beyond. “You probably have decent ideas that you’re just unwilling to share at that time for fear of judgment. That doesn’t make you an insecure person, that makes you a human person. … We become so fixated on arriving at the right answer, that we forget it’s a winding road.” Clark Valberg’s 3 Tips for Scaling a Remote Workforce Take advantage of in-person time. When the InVision team gets together in person, it’s not about getting work done—for them, the real work happens in the cloud. Instead, in-person time is used to get to know each better. Valberg believes that sharing this experience positively translates to the online environment, which is why in-person gatherings are an important part of every remote workforce. That’s why InVision has an in-person all-hands once a year and encourages employees in the same cities to get together regularly. Consider time zones, but don’t be limited by them. InVision is a truly global company. Its presence extends across the United States, South America, Europe, and beyond. Which means they have to take time zones into consideration. However, they don’t let those differences limit their teams. For instance, InVision is mindful of not having geographically-bound teams work on projects together. So while they might not group an engineering team in Australia with one in San Francisco, that doesn’t stop them from hiring engineers all over the world. Use the right tools. Of course, using the right project management software and communication tools is key to maintaining a remote culture. Valberg believes these tools can make remote cultures more efficient than working in physical places. Consider the amount of time spent gathering people physically for meetings. People run late, dip in and out of the conference room, and have to quiet down before diving into the agenda. Whereas, tools like Zoom enable people to start meetings within seconds and allow everyone to take advantage of any dead time in between. “If I’m five minutes late to call you, you don’t have someone waiting and twiddling their thumbs doing nothing,” Valberg says. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Sophia Lee Key Takeaways The biggest challenge Valberg faced while running his creative agency in New York How Valberg created an in-house product to make the feedback process easier for his clients Why he didn’t want to sell his product to the public, and what eventually swayed him Valberg’s graceful stumble into securing his first round of funding Why the official launch for InVision was also the most important day of Valberg’s life InVision’s journey to unicorn status The reason Valberg decided to make the company 100% remote, and how he scaled it to 900 employees How the InVision team ensures employees never get stuck in a creative rut
Mon, 23 Dec 2019 - 727 - 279: How Crowberry Capital’s Founding Team is Backing the Next Generation of Entrepreneurs
Investing in the Future How three women from Iceland launched Crowberry Capital, a Nordic venture capital fund seeking to support the next generation of creative entrepreneurs. To be boldly creative, you often have to strike out on your own adventure. So that’s exactly what Hekla Arnardottir, Helga Valfells, and Jenny Ruth Hrafnsdottir did. While working together at an investment capital fund, the three women noticed a pressing need for more early-stage funding in their region. The trio wondered if they could not only meet that need, but also create something exciting and visionary by launching a private fund of their own. In 2017, they took the leap, and set out to launch Crowberry Capital, a Nordic venture capital fund with its sights set on supporting creative technological advancements in spaces ranging from gaming to health. No matter the field, their goal was to help young and promising Nordic companies (in Iceland and Sweden) grow into global brands. And just two years later, they already have 10 startups under their wing. There were, of course, many steps in between the launch and the fund’s present day success. For one, before a fund can start scouting new talent to back, it needs a whole lot of cash to invest in the first place. Cold Calls As you might imagine, launching a venture capital fund isn’t cheap. But you might be surprised to learn that venture capitalists don’t necessarily need to have their own personal wealth to get started (although it certainly helps). VC firms offer financial and other forms of support to early stage companies with high potential for growth, often deploying assets from other sources—wealthy individuals, banks, other investment funds, etc. Although Arnardottir, Valfells, and Hrafnsdottir knew many of the institutional investors in Iceland and had impeccable reputations, they still found themselves cold calling smaller investors. They even spread word through the media that they were launching the fund. “We went out early in the process to the local media and said we were going raise this fund,” Hrafnsdottir says. “So we sort of got it out in the open. Of course, that increases the risk that if you fail, you fail publicly, but we took that risk.” Although they acknowledged the risk, for them, failure was never an option. “That’s why it’s great to be three,” Valfells says. “There was always at least one optimist.” That process of raising capital also gave the team a fresh perspective on life as an entrepreneur. “It made us more empathetic toward entrepreneurs, because you realize you just have to cold call rich people you’ve never met and say, ‘Would you like to invest in my fund?’” Valfells recounts with a laugh. Being on the “selling side,” as she puts it, helped them to recognize more clearly what it takes to pitch effectively and reemphasized the importance of passionate energy, lessons they carried forward into choosing where to invest once the fund was up and running. But despite the daily strain of cold calling for investments, Valfells says that living in Iceland took away much of the stress others might experience in their position. “There’s a great safety net,” Valfells says. “Everybody has access to childcare and school and healthcare, so I think you’re willing to take a risk with your professional life because you know there’s a safety net that catches you.” She says that this safety net makes walking away from stability much easier and, because of that, creativity is free to flourish. And by extension, people are more liberated to do what they love. “I think we’ve all made sacrifices in the sense that we’ve turned down higher paying jobs and jobs with more security, but it hasn’t been a sacrifice because this is what we love doing,” Valfells says. After six months of phone calls and meetings, they had raised $40 million, and Crowberry Capital was ready to take flight. Comfort in the Chaos When the time came for the trio to begin investing in up-and-coming companies, they weren’t just focused on the products coming across their desks. Instead, they took the time to learn as much, if not more, about the minds behind the products. “Everybody wishes to invest in bold, creative, and hardworking entrepreneurs,” Valfells says, “but I think that one part of the process with us is we get to know the entrepreneurs really well and really see the ones that can kind of do things to move the needle.” By taking everything into account, from the passion behind the pitch to the willingness of the entrepreneurs to leave jobs behind and throw themselves entirely into their projects, the three founders of Crowberry Capital single out investments with staying power. “It’s about finding the comfort in the chaos,” Hrafnsdottir says. “I think the ones that really go with the flow and are determined with their mission manage to prosper at this early stage.” They also consider how the entrepreneurs plan to enter the market, draw attention to their product, and brand themselves. Essentially, they have an eye on the creative spirit that exists within a team. “It’s becoming more important than anything, because in this age of artificial intelligence it’s really important that we as people build up our and social intelligence,” Hrafnsdottir says. “These are the things AI is never going to bring to the table.” Arnardottir also says that they pay particular attention to what kind of team the entrepreneurs surround themselves with, citing gaming companies as being particularly talented at building stellar teams. Do they communicate well? Do they represent a diversity of skillsets? These are the questions the trio talks over before choosing to invest. Valfells even noted that she’s seen particular success when it comes to going global when a team is international from day one. “Having a diverse, international background helps build an international company,” she says. But, while they try to find teams and companies that can thrive and grow internationally, they aren’t just on the hunt for the next unicorn. “I think there’s a risk in the world today that unicorns overshadow a lot of good businesses that can give investors great returns,” Valfells says. She explains that, while unicorns are great, they also keep their eyes peeled for racehorses: companies that won’t make a massive splash but will never fail as they faithfully speed forward into the future. And the future is where all three women have fixed their sights. Planning for a Digital Future In an increasingly digital world, Crowberry Capital has chosen to focus on businesses that are focused on building a better future within that reality. “We invest in technology that we believe is changing the world for the better,” Valfells says, “and that makes you feel really happy and good about your job.” For example, Travelade provides online travel guides curated from the recommendations of locals, and Aldin is an immersive VR company. They’ve also welcomed Monerium, an e-currency supported by blockchain technology, and Kind, a virtual communication tool for the healthcare industry, into the fold. They are also very mindful to choose companies they will want to work with for years, because Crowberry doesn’t just offer seed money to startups. They also plan to support businesses through B and even C round funding, with up to $6 million set aside for each company as it grows over the 10-year lifespan of the fund. So, Arnardottir explains, if one of the three founders is more passionate about a company than the others, she takes point on guiding that business while the others serve more of a support role. But no matter how passionate they are about a business, they are very careful to let the entrepreneurs make the big decisions. “I think it’s very important that we are hands on and not hands in,” Valfells says. “For us, it’s very important that we’re backing teams that are really good at execution and are in the operations, and we’re more like sounding boards and mentors.” So, as the trio behind Crowberry Capital presses forward into the future, searching for the final five investments they plan to make, they are excited to lead another generation of Nordic entrepreneurs onto the international stage as creative innovators who will change the world. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways The pressing need Arnardottir, Valfells, and Hrafnsdottir noticed that inspired the idea for their Nordic venture capital fund, Crowberry Capital Why the trio relied on cold calling and local media to launch their venture capital fund How raising $40 million in capital made the founding partners more empathetic towards entrepreneurs How living in Iceland relieved some of the pressure of taking a professional risk Why Arnardottir, Valfells, and Hrafnsdottir keep their eyes peeled for “racehorses” in addition to unicorns The reason the founding partners take so much time to get to know the entrepreneurs they invest in The difference between hands on versus hands in Why Crowberry Capital chooses to focus on businesses that are building a better digital future
Fri, 29 Nov 2019 - 726 - 278: Konrad Bergström’s 20-Year Journey to Creating Electric Boat Company X Shore
Konrad Bergström and X Shore have set out to change the boating industry, one electric motor at a time. Timing is everything for Konrad Bergström. So when he first got the idea for X Shore in 1996, he trademarked the name immediately, but didn’t launch the company he had in mind just yet. It wasn’t the right time. Bergström wanted to build safer boats, but he realized that the boating world was lagging behind the automobile industry when it came to details and design. Instead of forcing his dream, he chose to wait. Over a decade later, inspiration to launch his boat company struck once again, but this time the dream had become bigger. With the world beginning to fully embrace electric vehicles, he wanted to build and sell a sleek, top-of-the-line, 100% electric marine craft. “This makes actually more sense on the water,” Bergström says. “Because it’s an open area where you are getting fumes, and you are getting noise disturbance, and it’s actually taking more energy to drive in the water.” Twenty years later, in 2016, X Shore developed its first working prototype. Today, Bergström and his team are ready to change the world’s view on how boats are powered. Not only do they hope to reduce pollution and the impact on wildlife with their electric engines, but they also hope to improve the overall boating experience for the consumer. But long before Bergström would design his first boat, he started with headphones. One Journey Ends, Another Begins If you ask Bergström, he’ll say that he’s never experienced what a real job is like. He’s just experienced different ideas. From an early age, Bergström has had an entrepreneurial spirit and a knack for creativity. At just 16, he moved to New Zealand, launching a distribution company for windsurfing gear called Thule Roofracks, among other projects. However, his greatest achievement was founding Zound Industries in 2008, where he served as its president until April of 2019. While at the skateboarding fashion company WeSC, Bergström helped the brand to create a line of fashionable headphones. Wanting to take the concept one step further, Bergström founded Zound and turned it into an electronics giant, specializing in headphones and speakers. The company created many popular headphone brands such as Urbanears, and held licensing deals with audio behemoths like Marshall. During his 10 years as president of the company, they would go on to sell over 20 million products in 135 countries. Despite the strong sales, Zound and Bergström parted ways over differences on the direction of the company. “I always think that things happen for a reason,” Bergström says. “So I have moved on and I wish them all the luck. And I did build a fantastic company, so that’s never gonna go away, even if I don’t have any ownership anymore.” The separation from Zound allowed Bergström to give all of his attention to X Shore, which had gained new life in 2012 after Bergström saw the rise of Tesla and its technological advances. With the electric revolution for automobiles well underway, he felt that concept of the electric boat would also take off. “We started the electric product in 2012, and basically, I thought it was going to be easy,” Bergström says. “Looking at the internet at some lithium batteries and some engine, like, how hard can it be?” Very hard, as it turned out. Over the next four years, the team would work on the concept before completing their first working prototype in 2016. And although it took years longer than he anticipated, Bergström was glad that they went through the growing pains. “That one, by the way, looked like crap,” Bergstorm says about the initial prototype. “Sometimes, an idea on paper is very far from getting it industrialized. So it takes time, especially with such a big product, to go through all the details and find solutions that economical, so you can have the margins and survive as a company.” Let the Other Guy Build the Tech Bergström and X Shore don’t want to recreate the wheel. Rather, they just want to right the ship. With Tesla and other companies openly releasing their electric technology, Bergström didn’t feel the need to develop his own tech for boats. Sure, he’d have to develop some things on his own, but for the most part, why not use what’s already out there, he figured. “X Shore, of course, has some of its own technology,” Bergström says. “But basically, we are piggybacking on the automotive industry.” With armies of engineers grinding away on this type of technology, which is changing all the time, it made more sense to have others advance the technology and for X Shore to translate it into a marine environment. Not to mention, this approach helped their bottom line. “Instead of having like 100% of the development cost, say that we are paying like 3%,” Bergström says. “But it’s still a lot of money. … We have the first mover advantage of building a new segment, but we are not driving the technology.” The approach has also allowed X Shore to keep its staff smaller, which includes not having an in-house engineering team. That’s basically unheard of for an innovative company such as this. X Shore has partnered with automotive giants such as BMW and Rolls Royce to help find the best solutions for maximizing speed and driving range. Despite not having an engineering team in house, it doesn’t mean that X Shore is done innovating. They still have a lot of work to do in order to become a leader in the marine industry. “We spent around 50,000 engineering hours so far,” Bergström says. “And I think that we are going to have to spend another 50,000, so it’s a total of 100,000 engineering hours.” Next Up Bergström is excited to start selling boats and shipping them, starting sometime next year. More importantly, he’s ready to bring more awareness to X Shore, which includes unveiling the third generation of its product in January. When he first started to openly share the idea of an electric boat, the reception wasn’t warm. Now he feels, the timing is finally right. Proof lies in the company’s recent investment campaign, which raised €1.5 million. “With a product like this, I needed the car electric revolution to go first,” Bergström says. “When I talked to people in 2012 and said that I’m going to do an electric boat, they are like, you are crazy. But now when we are at the tradeshow, everybody is like, oh that makes sense why didn’t anyone do it earlier.” Even if people are still skeptical about the concept, however, all they’ll need to do to become convinced is take a ride. “Once you experience the power of silence, you never go back,” Bergström says. “It’s truly amazing. Tips for Inspiring Creativity Konrad Bergström has built a career around opportunity and creativity. A founder of multiple businesses, he’s always kept his eyes open for new concepts and has kept his ideas free flowing. Since 1980, he’s created businesses that ranged from snowboarding contests to stereo headphones. Bergström now is onto his next adventure, X Shore, where he hopes to change the world of boating by making it greener and quieter. If you’re in a creative funk, here are three tips from Bergström for inspiring creativity: Be Patient Bergström initially wanted to start the boat company in 1996, so much so, that he trademarked the name X Shore before actually creating the company. Unsure of the direction he wanted to take, he waited until 2012, when after witnessing Tesla’s new technology with electric cars, he was inspired. It only was then that he knew wanted to build boats that were fully powered by batteries. If at first you don’t find the right concept you feel comfortable with, especially when it comes to creating a business, be patient. Pursue other interests, and along the way, you may get the inspiration you were looking for in the beginning. Even if it takes 16 years. But Also Be Persistent “It took me a long time on different things,” Bergström says, “But sometimes, time is what you need because when you can think things over and over again, it does make you come to better conclusions, especially when you work in design.“ X Shore launched its first working prototype in 2016, nearly four years after officially moving forward on building an electric boat. However, just as Bergström was patient in coming up with the initial concept for the company, he was also very persistent when it came to the design and functionality of the boat. He wanted everything to be just right before releasing it to market. Look Around You Bergström was raised in a home of creative individuals. His mother was a theater director, his father was an engineer, his grandmother exposed him to nature, and his grandfather was an innovator in medicine with over 200 patents. Wherever he looked, he saw a creative role model. However, according to Bergström, you can be inspired anytime and anywhere. You don’t have to be from a family full of creative individuals. It’s more about exposing yourself to different environments, people, and settings. You just have to “change rootings” as Bergström puts it. You can draw inspiration from playing with children, products you’re buying, or even the food that you’re eating. “You just have to open your senses to make the right choices when it comes to creativity,” Bergström says. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Nick Allen Key Takeaways The series of unconventional jobs Bergström held from a young age Why Bergström trademarked the name X Shore in 1996 but didn’t launch it for two decades How Zound Industries took over Bergström’s life for 10 years, and what ultimately led him to walk away from the company Why Bergström decided to let the electric car revolution play out first The growing pains that came with creating a working prototype for electric boats How X Shore piggybacks on the automotive industry Bergström’s plans to start selling and shipping X Shore boats in 2020
Wed, 27 Nov 2019 - 725 - 277: Flashstock’s Rapid Rise From Launch to Acquisition, With Founder Grant Munro
Content in a Flash How Grant Munro and Flashstock created an agile solution for on-brand, custom photo and video—and reaped a big windfall. For Grant Munro, nothing felt right. He had always aspired to start his own business, but never knew what to pursue. He went on to work for larger companies as a software developer and product manager, but those paths didn’t feel quite right either. Despite not having an explicitly creative background (what with coming from tech and software development), Munro finally found a pursuit that excited him—helping brands express themselves creatively. He first came upon the opportunity after major clients he was working with at a creative boutique kept asking for help with creating custom visual content. As photo and video on social media were taking off, and major brands were seeking solutions for creating unique content, Munro realized it was time to start his own thing. “It got to the point, I was like well, if I’m gonna to start a company, this seems like a pretty good one,” Munro says. Good turned out to be great. In 2014, Flashstock was born, and it was perfectly timed to the rise of Instagram as an advertising platform. As a leading custom content creation company with a global network of freelancers and contributors, Flashstock’s proprietary platform allowed hundreds of brands across the Fortune 500 to streamline on-demand visual content (think photos, videos, GIFs, and so on). With its steady growth, unique software, and a list of high-profile clients, Shutterstock acquired the Toronto-based company in 2017, after it had been in business just four years, for $50 million in cash. Flashstock was subsequently rebranded as Shutterstock Custom. However, had it not been for a former employer making a change to its business model, Flashstock may never have come into existence. This Seems Like a Good Company to Start After those early stints at major companies and acquiring his MBA, Munro took his first steps into the startup world, joining a boutique social media agency in Toronto. That’s when he really started to find some joy in his work. With his experience in product development and software engineering, he joined the company’s product team with the hopes of coming up with new ideas to increase their SaaS revenue. Along the way, he learned that he enjoyed the customer development process, and understanding clients’ pain points and problems. As the company’s product business grew and it became established as an early player in social media management, the team realized that they no longer wanted to focus on traditional creative agency services, such as content creation. “They viewed that as something that wasn’t a good type of revenue that they wanted to continue, so they discontinued offering it,” Munro says. “And because we were providing content mostly for social at the time, and some digital stuff, the clients were very unhappy about this.” Munro was surprised by his clients’ reactions. Although this shutdown may have provided a temporary inconvenience, he assumed that someone else would simply take over their content production, maybe another agency. That wasn’t the case. The agency had created a formula for creating low-cost, quick-turnaround content for social media, and clients loved it. They didn’t want to see it go away, and they kept asking Munro for different solutions around content, despite the agency no longer providing the service. Realizing that these questions would never go away, and that companies were not finding a solution for their content production, Munro got creative and took a risk. “I ended my role there and then sort of rolled over and started Flashstock pretty much the next week,” Munro says. “And went to some of the early clients from the previous company that had requested help on the content side and offered up a solution that would basically connect them, through some software that I wrote, directly to freelancers all around the world.” By acquiring early customers and refining the product, it provided Flashstock with some growth and sustainability early on, but not without some changes. Visual Identity Calibration When Munro initially started Flashstock, the positioning for the company was that it was an alternative to stock photos and videos. The messaging was working with marketing agencies, but brands were not as interested. Munro knew he had to change it up. As Instagram was making some changes and starting to take off, Flashstock’s positioning went in a new direction. It was no longer just an alternative resource for stock imagery—it was now a place where brands could go for help in telling their stories in unique ways, using differentiated content, but at a much lower cost. More brands started to buy into this concept, recognizing that creating custom content on a large scale posed a great challenge. Major corporations didn’t have the time to find freelancers and manage the creative process, so they need needed a service to do that for them. They needed Flashstock to do this. Munro first and foremost needed to come up with a way for a brand to communicate in a non-ambiguous way what it stood for and their target audience. And most importantly, all of this needed to be presented in a way that a freelancer could understand, despite never meeting the client. “If you’re a big organization, it’s usually okay , because when you’re creating content, you’re usually with the people that are creating it,” Munro says. “But when you’re in this networked world where you’re communicating through software and you’re never talking to people, that level of ambiguity breaks the system. So we needed to come up with a way to solve that, frankly, for our own survival.” The solution? Something Munro calls visual identity calibration. This phrase describes a system in which a brand enters its information and describes its identity to Flashstock, and then the Flashstock team puts the brand through an exercise to pin them down on the right details. The end product is a well defined set of creative variables, which Flashstock then provides to their freelancers to create new, on-brand content. The system garnered great feedback and has been praised for its innovation in solving this communication pain point. So much so, that some companies have even used a lot of these tools internally to communicate with each other, according to Munro. Power of the ‘Gram Around 2014, Instagram really began to open up its platform for anyone to be able to post and create company pages, and major brands wanted to get in on the action. In order to fully take advantage of it, brands would have to post often, but on the cheap for it to make sense for them financially. This was right up Flashstock’s alley. “Every organization wanted to be on the platform, but because there was no paid promotion behind it, they wanted the cost of the content to be as close to zero as possible,” Munro says. This demand allowed Flashstock to be able to acquire new clients regularly, as many brands wanted to create content for Instagram, but not many agencies were offering this custom service at an affordable price. With Flashstock, brands could log in to the platform, find contributors around the globe, and receive on-brand content in a timely fashion. “I was really able to complement what a traditional creative agency was doing and not really be a competitive threat because they didn’t want to create that type of content,” Munro says, referring to custom content at low cost. Soon thereafter, Instagram turned on its ad platform, allowing brands to really promote their content that they made native for the platform. Once Instagram flipped this switch, it really took off as an effective place for brands to advertise, and Flashstock’s growth took off with it. The rest, as they say, is history. The company grew extremely quickly, and within just four years of operating, was acquired by leading stock photography company Shutterstock. Today, Munro is the senior vice president of Shutterstock Custom, where he has been since Shutterstock acquired Flashstock back in 2017. The division operates as its own unit, where it continues to provide major brands with quick, authentic branded content. As for Munro’s future, and whether he’ll ever return to entrepreneurship, he’ll never say never. “Right now, I’m still with Shutterstock and I plan to be with Shutterstock for some time,” Munro says. “When you’re a startup, you’re out there doing it alone and sort of fighting for your life, and then when someone takes you into the fold like Shutterstock has, they provide you with a ton of resources. So, we’ve got a bunch of unfinished business that we have left to take care of.” 3 Tips For Scaling A Creative Company When Grant Munro decided to start Flashstock, he was learning everything in real-time. Building a company culture and fostering creative talent were all new to him. Fortunately, Munro was a quick learner. He found the right formula for success and company growth, and in just four years, sold Flashstock to Shutterstock for $50 million. Here are three of Munro’s tips for scaling a creative company. Know Your Customer During a stint at a startup, Munro learned how much he enjoyed the process of customer development and understanding what a company’s pain points were. By really diving in deep and talking with his clients about their problems, or even understanding your own company’s problem, it becomes easier to think of novel solutions, or to have “aha” moments. When you’ve invested the time into knowing the problem and understanding the ecosystem of that problem, you open yourself up more to those flashpoints of creativity and resolution. If you don’t spend the effort doing customer development, you’re making it harder on yourself, maybe not now, but later. “I feel like a lot of that gets overlooked at companies of all sizes,” Munro says. “Where they almost have to reinvent the wheel every time they want to launch a new campaign because they haven’t created that discipline around customer development.” Go Chat With Someone Who’s Done It When a person sets out to create a product or scale a business, they tend to focus first on what they’re good at and what interests them. And if there is a challenging task ahead that may be intimidating, it is quite natural for them to put it off and go back to working on something they’re good at. This can stunt the growth of your business and make it hard to scale. Munro suggests that if you’re struggling with a component of your business, or need some guidance, go talk with someone who’s done that task before. “When you talk through your current priorities with people who have sort of done it and been there, they can help you recalibrate those ,” Munro says. “And they can help you say, ‘No, no, you don’t need to write another line of code, or you know, you don’t need to tweak your designs anymore. What you need to do it is set up your accounting software.’” Define Your Core Values and Mission Flashpoint’s growth was very, very fast. Within the company’s first few years, they had grown to around 80 people, so they had little time to set up any processes, let alone establish values or have a clear company mission. It was when he was repeatedly asked questions about the company’s future, and he realized he didn’t have a hand in the interview process with some key employees, that he felt it was time to create a company mission and values. With the help of a third party to facilitate a retreat, Munro and key members of the team came up with Flashstock’s mission and values. And immediately, he saw results across the company. It would help them formulate an employee handbook, and to use these values in the hiring process. “It simplified everything,” Munro says. “We would reference them all the time. From a creativity perspective, people feel really comfortable, people feel really consistent, people feel really welcomed their ideas based on the culture and that sort of frees up their thinking.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Nick Allen Key Takeaways Why the creative boutique Munro worked at stopped offering custom social media content creation How this decision left his clients with an unmet need and led him to launch Flashstock Why Munro pivoted the focus of Flashstock The problem Flashstock solved for brands looking to tell their unique stories How Flashstock’s “visual identity calibration” works The impact that Instagram’s growth had on Flashstock’s business Flashstock’s rapid growth and acquisition by Shutterstock Why Munro doesn’t plan to return to entrepreneurship any time soon
Tue, 19 Nov 2019 - 724 - 276: Using Content to Build a Community, With Beardbrand Founder Eric Bandholz
Rise of the Urban Beardsman How Eric Bandholz challenged the stereotypes of bearded men and built a booming community with Beardbrand. Eric Bandholz didn’t like being put into a box. In his former life as a financial advisor at a big bank, for example, he was expected to fit the stereotypical facade of a banker—suit, tie, clean-shaven. He didn’t like it, so he quit. With his newfound freedom, Bandholz embarked on an entrepreneurial journey, all while sporting a fresh, full beard. While he loved his rugged new look, he noticed it was happening yet again. This time, he found himself stuffed in a box with the likes of ZZ Top and the guys on Duck Dynasty. Of course, Bandholz didn’t identify with any of these well-known bearded figures either. And he began to realize that other full-bearded men from all walks of life didn’t fit this mold either. “I ended up going to this event where I sort of meet other guys like me, like stay-at-home dads and ministers, salespeople, doctors, lawyers, who are all rocking beards and they didn’t really fit the traditional stereotype,” Bandholz says. “So I was thinking about it. … Who are these people? How do I describe them?” Seeing there was a broad community of bearded men without a home to call their own, Bandholz founded Beardbrand in 2012. Along with co-founders Lindsey Reinders and Jeremy McGee, Bandholz created a community where bearded men could unite, evolving later into a full-fledged lifestyle brand complete with their own beard care and styling products. With an army of loyal followers on social media, which includes a YouTube channel with over a million subscribers, Beardbrand has grown into an “upper seven-figure business” with ambitions to reach eight in the near future. Bandholz has come a long way from his suit-and-tie-wearing days. In the Beginning In 2011, Bandholz was working for Merrill Lynch in Spokane, Washington, as a financial advisor. It was a respectable career that had a bright future and potential for growth, however, it wasn’t a future he saw for himself once he was in it full time. Although he loved the work of financial advising and investing, it was stuffy atmosphere and the overall “bank life” that Bandholz knew was not for him. Not wanting to spend another moment in a job that wasn’t a good fit, Bandholz packed up his portfolio and moved on. The next move? With a background in marketing prior to his career in finance, Bandholz founded Sovrnty, a startup with a mission to help companies set up marketing automation. Although he had great plans for the business, it never took off. “I was like one of those gurus. I’d never done it, right?” Bandholz says. “So I’m telling people to do something that I had never really done.” Unable to sell businesses on his idea, he shifted Sovrnty’s focus to something that he was good at, which was designing and building WordPress sites. Although he was getting some business, it still wasn’t enough. He was pulling together around $2,000 a month at Sovrnty, but he was mainly relying upon his wife and her full-time job to keep the lights on. Always searching for new clients and ideas, Bandholz was a regular at networking events. And at whichever event he attended, he was always getting called out as one of those cliched bearded figures. The light bulb went off. If he didn’t like to be lumped into the stereotypes about bearded men, there had to be others who felt the same. These guys weren’t lumberjacks, roadies, hillbillies, or hipsters, but how exactly would he characterize them? What would he call them? He settled on “urban beardsmen.” And in 2012, Beardbrand was born. The first thing to launch was the blog, Urban Beardsman, which would become a place where Bandholz could help foster a community and connect with other men who didn’t fit the Grizzly Adams stereotype. Beardbrand would soon follow, an organization that united that community of urban beardsmen. There they could also find the tools they needed to feel confident about their beards and personal styles. But getting from simple blog to full-fledged business proved to be a difficult task. Startup Weekend Although Bandholz was still working at Sovrnty to help make ends meet, he had high hopes for Beardbrand. However, a clear vision on how to grow this new community was nowhere in sight. “Aw man, it was terrible. It was just terrible,” Bandholz says. “There was just no strategy at all in those early days.” The community was growing, but it was hardly going viral. He was posting regularly to Urban Beardsman, had a Tumblr page, and posted some videos to YouTube, but nothing was really taking off. Despite its middling traffic, the blog was the only one of its kind back then, which by default made Bandholz an expert on the topic of beards. Because of its uniqueness, the Urban Beardsman would catch the eye of a reporter at The New York Times who was writing an article and wanted to quote Bandholz. As Bandholz waited for the Times article to be published, he convinced friends Reinders and McGee to join him and collaborate at a Startup Weekend, where they could share their ideas on potential projects. They originally came together to work on a different startup idea that Reinders had, but it soon became clear that they didn’t have the capabilities to create her software product in house. Needing a new business to work on, Bandholz proposed his side project. “I was like, hey, I got this Beardbrand thing and this New York Times reporter is going to quote me in an article,” Bandholz says. “Why don’t we turn that into something?” And turn it into something they did. Reinders and McGee were on board, and in 2013 the business arm of the company was born. Without much capital to start making their own products—they only put $30 into the business at first—the team opted to become an ecommerce company that sold beard oils from a vendor with standard retail markups. “When the New York Times article posted, we were able to get a couple sales,” Bandholz says. “And I think the first month we did like 900 bucks in sales. And then it was kind of like 900 bucks, 1,000 bucks, 600 bucks … 2,000 bucks, 3,000 bucks, 7,000 bucks. And then it just seemed like we got a lot of momentum into that fall season and holiday season.” After almost seven years in business, which included an appearance on Shark Tank (spoiler alert: they didn’t get a deal), the momentum is still going strong. Beardbrand continues to grow in community, employees, and revenue, and is now located primarily in Austin, Texas with about 15 team members and 120 products sold through their website. Bandholz, whose main focus is on the creative direction of the company, still has major plans for the future of Beardbrand. They intend to try their hands at branching out to create their own custom barbershops, where they can create the same experience a customer may see in a Beardbrand YouTube video. They do this by not only creating an amazing barbershop environment, but also by hiring the right barbers and stylists and coaching them on the information a customer is looking for when they sit in the chair. “[Customers] can to go Great Clips or they can go to their local barbershop and get a really good haircut,” Bandholz says. “But what we want to deliver is that education similar to how we deliver it on our YouTube Channel.” Whether it is through their popular YouTube videos, blog, or even future barbershops, Beardbrand will always work towards its core mission. “We’re not just here trying to sell products for vanity,” Bandholz says. “We believe that when you invest in yourself, you become a better person and you make the world a better place. You live longer. … I feel this responsibility that I’ve got to get that message out there as much as possible so that we can make the world a better place.” 3 Content Marketing Tips for Bootstrapped Startups When Eric Bandholz first started Beardbrand, cash was minimal. He was still working at his first company, Sovrnty, and was building Beardbrand on the side. They knew that they didn’t have the money to pay for marketing, but what they did have was their time to invest in content marketing. Bandholz knew that with the right content and strategy, they could reach millions of people. “Content marketing was essentially our only option in those early days,” Bandholz says. “We didn’t have cash to put into the business. So it started with sharing our story on Reddit. It started with, you know, reaching out to people on Twitter and sharing our product with influencers and not paying them for it.” Being proactive with their content marketing strategy in the beginning was a key component of Beardbrand’s success. Here are three tips to help your startup bootstrap using content marketing. Get Started, But Be Patient Without a marketing budget, Bandholz turned to content marketing to help draw eyes to Beardbrand. It was cost-effective, with the bulk of the investment being his own time to create the content. The trick was not only to post content and to post it often, but to also know that in the beginning, you won’t get much of a return on your investment. Content marketing is a long-term play. The first step is to just create something. Anything. “While it does build up over time, it also doesn’t do anything in the beginning,” Bandholz says. “And you really have to like… stoke that fire and get it going. And you get it going by creating, you know, 20 or 40 or 50 pieces of content that start to build that foundation.” Do What You Like To Do With so many different funnels and channels to produce content for, it can be intimidating on deciding where to start. According to Bandholz, the type of content you should produce first should be for the channel you’re most interested and passionate about. “I think you look at yourself and what you like to do,” Bandholz says. “Are you more of an audio person? Then maybe podcasting’s the way to go. Are you more of a writer, you know, introvert? Do you like to express yourself through words? Then blogging is a great way to go. Then, of course, if you’re narcissistic like me…then video is a great source for you.” The more passion you have for a certain medium, the more likely you’ll churn out content and stick to the long-term plan. Understanding Expectations Not all content is created equal, and it’s important to understand the goal for each piece of content you create. At Beardbrand, they use the sales funnel model, where their “content at the top” is there to bring awareness to the brand, the “middle” is used to introduce the products, and the “bottom” hopefully helps to turn the reader into a buying customer. “Sometimes we have content that is there to inspire people,” Bandholz says. “You know, it’s not going to drive any sales. It’s just there to help build awareness to the brand. And then other good content is stuff that drives sales and gets engagement, or gets people talking and spreading the word.” By diversifying the types of content you create, you enhance your chances of attracting different types of readers and content consumers on different platforms. As Bandholz says, as a creator, you don’t know exactly what part of the funnel really “helped them become a customer.” For instance, the customer may have first learned about your company through a YouTube video, but it was perhaps the blog or an email newsletter that really got them to trust you and that turned them into a paying customer. Whichever type of content strategy you decide to implement, one thing is for certain—just get started. You never know who is reading. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Nick Allen Key Takeaways What drove Bandholz from his career as a financial advisor Why his first startup Sovrnty failed to take off The lightbulb moment that inspired Bandholz to launch Beardbrand How Bandholz leveraged content marketing to grow his business on a tight budget The struggle to grow the community into a full-fledged business How Beardbrand eventually caught the attention of The New York Times The partnerships that helped Bandholz start selling beard grooming and styling products From investing $30 into an ecommerce business to making 7 figures What Bandholz envisions for the future of the company
Tue, 12 Nov 2019 - 723 - 275: Riot Games Co-Founder Marc Merrill Shares the Story Behind League of Legends
The dramatic tale of how Marc Merrill and Brandon Beck set out to make a better video game, and changed the industry with League of Legends. Marc Merrill and Brandon Beck were typical college roommates. They went to class. They studied. They played video games. OK, a lot of video games. But they also shared an avid interest in business, including the business of their favorite hobby. So while other gamers helplessly yelled at their screens when a glitch popped up or they felt burned by an expensive new sequel, Merrill and Beck thought up ways they could fix these shortcomings—ways they could make the industry and the gaming world better. Today, the duo co-chair Riot Games, a video game company that places a unique focus on the needs and experiences of gamers. As their signature game League of Legends approaches its 10th anniversary, it operates in 19 languages worldwide, has inspired a line of Marvel comics, and holds competitive tournaments, with the latest championship drawing nearly 100 million viewers. How does a free game that can only make money through selling virtual goods become such an enormous business? The answer is in the radical vision for gaming that Merrill and Beck strongly believed in, and were determined to realize—even if it meant challenging game publishers, investors, developers, and themselves. As Merrill tells it, the story of how they pulled it off is legendary. From Passion to Plan “We had two shared passions,” Merrill says. “One being gaming—we were both incredibly hardcore gamers, and we loved playing games with each other—and the other being business.” Merrill and Beck were studying business at USC and, although they spent every spare second gaming, they never imagined it would lead to a career. Even as they worked toward their “responsible, adult jobs,” they constantly bounced ideas off of each other, dreaming up ways to solve the problems that irritated them most as gamers. After they graduated, and Merrill moved into a career in banking and Beck went into consulting, they continued the conversation in their West Hollywood apartment. They, and many other gamers like them, found the current model of game development frustrating. The industry ran on new releases, sending gamers to retailers to buy endless $60 sequels to beloved games. Meanwhile, those who played the games didn’t actually want a brand new game or a sequel to what they were playing. Instead, they would have preferred updates, new features, and new adventures to appear in the game they already loved. Was there, Merrill and Beck wondered, a way to create a game that first and foremost served the wishes of gamers, rather than the needs of retailers? One that could grow over time with the players? They sensed that the video game industry was headed toward a significant disruption, and as the days passed, they began to realize they might be the disruptors. “We, as passionate players of games, had identified that we felt really underserved at the time,” Merrill says, “and so had a whole thesis about how to go create a company that solved a problem that we deeply felt.” So, when the twentysomethings weren’t working diligently away at their respective day jobs, they drafted a business plan for a new kind of game. But they were nervous about taking the plunge, and they wanted to be sure this was something they could see all the way through before moving forward. So they asked themselves three crucial questions. Was there a demand for what they wanted to build? Could they build it? Would they be able to find the necessary capital to turn their dream into a reality? The moment they felt comfortable answering yes to each of these questions, they charged forward and, in 2006, Riot Games was formed. Establishing Credibility The creation of something revolutionary is never easy. “We’ve had many catastrophic circumstances that should have torpedoed the company,” Merrill says. From day one, they knew that overcoming their lack of credibility was going to be the biggest challenge in creating the game they were imagining. “Knowing what we know now, we literally wouldn’t have invested in ourselves back in the day,” Merrill says. “We ironically believe that our naïve optimism was one of the incredibly important ingredients for success.” Experienced developers were hesitant to join the team because of Merrill and Beck’s inexperience and lack of funding. Meanwhile, shrewd investors were skeptical about hopping on board due to their inexperience and lack of experienced developers. But Merrill and Beck moved forward anyway with the best they could recruit, and they strove to build credibility. At one point, they tried to bring someone on board as CTO and executive producer who had thrived in the industry for years and even had a publishing background. But as the three of them worked to recruit talent for the business, Merrill and Beck soon realized that they didn’t quite gel with their new teammate. They felt more drawn to interns who lacked experience, but understood the vision of the game and had great potential. Meanwhile, the senior staffer tended toward experienced developers the co-founders would not have chosen themselves. Because they didn’t want to come off as overpowering, micromanaging founders, Merrill says they let the developers work freely. But this soon created a serious problem. Merrill says they discovered that the lead developer had plans to steal the company and had been secretly pitching his own version of the game to other publishers. The cultural divide Merrill saw growing within the young company, punctuated by this betrayal, inspired the co-founders to become far more hands on with their business. “That was a really galvanizing event that helped teach Brandon and I that when experienced individuals say, ‘Trust me, because my 20 years experience in this particular industry or this field means that I know what I’m talking about,’ it’s really important to say, ‘Well, enlighten us,’” Merrill says. “If somebody can’t articulate a good rationale for whatever it is they’re doing, even if it’s a deeply technical concept, that’s a red flag.” Merrill and Beck righted the ship, took a more active role, and set out toward building a game demo that would illustrate their idea to investors and publishers. But after constructing the demo, they realized they didn’t have the internal talent yet to fully realize the game they envisioned. So they established an advisory board, through which very experienced, talented developers could gain free shares in the company by mentoring Riot Games’ young developers, without leaving their full-time jobs. Over time, the relationships with those on the advisory board grew. While initially, those developers would have said no when invited to join the the team, things began to change. “As that equation changed, those eventually turned into yeses,” Merrill says. With each new, experienced addition to the team, the game development leaped forward with new input and inspiration for the junior talent, pushing the limits of what was possible for the company. While the game slowly took shape, they started approaching publishers with the idea. Unfortunately, Merrill says, every publisher they spoke with believed the concept of a free battle arena game that generates revenue through in-game purchases was insane. “Our whole business model was very unproven at the time,” Merrill says, “because our game was planning to be free, and we were literally selling virtual goods.” Because of this, they realized they were going to have to publish the game on their own. And that was going to require some serious cash—$20 million, in fact. “We had no idea if we were going to be successful until spending about $17 million of other people’s money and bringing the product to market and then starting to get validation,” he says. This made investors nervous, and Merrill says that 50 VCs turned them down before Benchmark and FirstMark Capital decided to come on board at $7 million. Riot Games was given the first half of the investment up front, with the second half to come after they had conducted a 1,000-user beta test. The only problem was that in 2008—before widespread smartphone adoption or cloud computing—the technology was not yet in a place to support the user base they anticipated for their game, meaning they had to build that, too. After briefly partnering with a startup in an attempt to outsource the creation of the necessary backend, they were $1 million poorer and no closer to what they needed. So, in the second half of 2008, they worked to build the platform internally from scratch. With only three months of funding left in their account, Merrill says they hired 1,100 people in the Philippines to beta test the game in internet cafes. The test was successful, and Riot Games lived on. Charging Toward Launch Day But Riot Games’ potentially catastrophic struggles were not in the rearview just yet. With launch day rapidly approaching, Merrill, Beck, and the 55-person team prepared to self-publish in North America and to publish in Europe through a licensing deal with GOA, a division of Orange Telecom. They even had a set “ship date” despite the downloadable nature of the game, to try to build credibility with media outlets skeptical of the level of quality found in most free games. Everything was ready to go. At least it seemed like it was. Rather than building the store feature of the game themselves, Merrill says they had hired an online store provider to handle the construction and management of the in-game shop. But as the beta tests progressed, the store struggled to keep up with growing demand. They tried removing unneeded features, but it made little difference. The store was the hinge on which the door swung. It was the only way for the free game to generate revenue, and it housed the players’ in-game wallets and account systems, meaning that without the store, players wouldn’t have any content. Because of this, Merrill was eventually forced to conclude that, once again, it would be better for them to build something of their own from scratch that could meet their needs. He reached this decision two weeks before Oct. 27, 2009, the set launch date for League of Legends. It was time to get creative. To buy themselves the time necessary to build the store, the game started with a “launch party,” during which all players could access all of the game’s content for free. The strategy worked well, attracting tens of thousands of players to the game, and once the shop was introduced, the paid content began immediately generating revenue. But Merrill says that the main reason League of Legends succeeded wasn’t their ability to attract new customers. It was their ability to retain them. So when the game continued to grow steadily in North America but remained stagnant in the European market, they had to take a closer look at what was happening underneath the hood. In North America, Riot Games made players feel heard, addressing their concerns with regular two-week patches. The European publishing partner, however, was unable to meet this same level of service, and Merrill says this is what caused the stagnation. So they immediately set to work unwinding the deal they had made with GOA, and then had 45 days to create a European entity, build an office, hire staff, create servers, and get the whole operation rolling so that gameplay in Europe would go uninterrupted. Despite the hassle, the change made all the difference. “We were able to operate differently and demonstrate why quality service matters because the second we took it over, we started growing,” he says. “Then, Europe started growing faster than North America.” Slowly but surely, month over month, League of Legends gained an avid fan base until it became the worldwide sensation it is today. But there was one more dream Merrill and Beck wanted to try to bring to life. A New Kind of Sport Both Merrill and Beck grew up loving and playing sports in the same way they loved and played video games. “We always believed that competitive online games of a certain type had all of the same dynamics that ‘real sports’ did,” he says. They knew that someday, a game would become an arena sport just like basketball or football. So why not theirs? In July 2010, they introduced the first significant update to League of Legends called Season One. With this update came the concept of singles and team rankings. This enabled them to launch a tournament system that would end in a final tournament in Sweden for a $100,000 cash prize. Interest in the tournament exploded as gamers battled for the crown. But Merrill says the realization that this could actually become something big came not from the competitors, but from the fans. During their first end-of-season tournament, over a million viewers tuned in to watch. “For us, that was validation of, like, ‘Wow, a lot of people are like us and really do want to watch games played at a competitive level.’” From that moment, the esports aspect of Riot Games grew rapidly. They established leagues worldwide and a world cup system similar to soccer. Today, they operate 13 leagues across the globe and hold their World Championship in the Staples Center, home of the LA Lakers. Merrill says there is even a player in China sponsored by Nike and that their most recent World Cup had more than 99.6 million live viewers, besting the viewership ratings for the Super Bowl. “As a League player, there’s always something to watch,” he says. “There’s always something to talk about. There’s interesting drama between teams. There’s players and pros to aspire to or to become fans of. There’s events that are happening all around the world.” Podcasts have sprung up analyzing players and teams, and fans cheer on players from their country the way they would with any other sport. Merrill says that about half of League players will never spend a cent in game, but that’s OK with him. “Our business is fundamentally about keeping players entertained and engaged over the long term,” he says, “and our view is that the only way to really do that is by delivering incredible value to them.” And if they don’t buy in-game items, they might buy one of the ancillary products, like the comic line currently running through Marvel. Or they may simply tune in for big events to cheer on their favorite players. While they work to further establish esports leagues, Riot Games is also striving to improve every aspect of the game itself. Merrill says that, since launch, they’ve redone every aspect of the game multiple times, improved their tools pipeline, overhauled their engine, and expanded their team to 3,000 globally. They are also looking into the creation of new games. “Riot is Riot Game right now, we’re not Riot Games,” he says. “The ‘s’ is still aspirational.” But Merrill knows that there is so much more to come for the video game company he and his college roommate founded to solve the woes of gamers like them. “We really feel like we’re just getting started.” Marc Merrill’s Tips for Building a Successful Business When founders set to work on their first companies, they are faced with a whirlwind of concerns, needs, and potential goals. But Marc Merrill believes these four items should be at the top of every early-stage founder’s to-do list: Set a Clear Mission “Having a deep sense of purpose and mission can really carry you through the darkest days, and also carry you and your team to great heights.” Build the Ideal Team “In our view—and I think in many businesses—the team is by far and away the most valuable asset. So getting the right people, building the right culture, being thoughtful about mission and purpose…those are all really important things to evaluate when building a team.” Establish a High Level of Trust “I think Riot’s success has largely been fueled by incredible people who are very committed to our mission and are willing to acknowledge mistakes and learn rapidly through failure because there’s a lot of trust.” Don’t Get Discouraged “You’re going to have days where you feel like you can take over the world, and there are so many possibilities, and then other days where you’re like, ‘Oh my god, how are we possibly going to solve this problem. We’re so in trouble.’” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways How Merrill and his roommate Brandon Beck mixed their love of business and video games The frustrations the duo had with game development industry How the co-founders overcame their lack of credibility in the industry A betrayal that changed the way Riot Games was run How a strategic advisory board solved their talent acquisition challenges Why game publishers and VCs alike weren’t on board with Riot Games’ business model The creative problem-solving that made the launch of League of Legends a success How Riot Games exploded the world of esports, leading to 13 leagues around the world The hunt for the next big video game
Tue, 05 Nov 2019 - 722 - 274: Real Estate Mogul Grant Cardone Talks Tenacity, the 10X Rule, And More
Turning Obsession Into Success Real estate mogul Grant Cardone explains his obsessive approach to business, and his 10X Rule for goal-setting. Grant Cardone, a self-made real estate mogul, sales and marketing trainer, and bestselling author, credits his success in life to persistence and an obsession with being the best. That, and his time working at a car dealership. “The first real job I had was my sixth job,” he says of the gig. “I was fired from my first five. Fired from my sixth job. I was fired six times, but I wouldn’t leave the last job. I just would not leave.” Part of the reason Cardone’s bosses kept getting so fed up with him was that he was a terrible driver. Not a great quality when working in the car business, as he kept smashing up the merchandise. But his relentlessness made up for it. “I would wreck their cars and they would fire me,” he says. “And then before I would leave, I would go sell something and they would keep me on. Selling something was always forgiveness.” By the time Cardone finally did leave, he was the highest-grossing salesman at the dealership. He was the first one there in the morning and the last one to leave at night, his goal always being to make himself indispensable to the company. And to make a lot of money. So yeah, Cardone is, well, obsessive. Coming up from nothing, financially speaking, he quickly learned that was the way to rise to the top. It’s helped him achieve his lifelong goals to make money, have a successful career, and help people along the way. Now, Cardone’s exploring that approach to life and business with his new book, appropriately titled Be Obsessed or Be Average. The Origins of Obsession In his book, Cardone writes, “I didn’t have a father who could lead me to the land of the rich, lend me a million dollars for my first real estate deal, assist with political connections through introductions at country clubs, or show me the ways of business.” His fate was forged, instead, by the tragic death of his father when Cardone was just 10 years old. Until that day, he had watched his father work hard to provide for his wife and his five children, starting a variety of businesses, from opening a grocery store to starting a life insurance company, and finally becoming a licensed stock broker. His father’s “drive and his obsession,” as Cardone puts it, were inspiring. And when he died, leaving the family behind to get by on their own, Cardone became obsessed himself—with the idea of creating enough wealth so he would never worry about money again. But his was a winding path to success. He carried around a lot of anger about his difficult situation, and fell into the wrong crowd in high school. He started smoking and drinking. He got into a lot of fights and a lot of trouble. By the time Cardone graduated, he writes in his book, “I had a massive daily drug problem.” He did go to college, however, fulfilling a promise his mother had made to his father. He graduated with an accounting degree after what he called “five long, miserable years.” At 23, he was broke and still doing drugs every day, just barely getting by at his car dealership jbo. “I was 20 pounds underweight and had a gray complexion, thanks to the drugs,” he writes. At 25, his mother gave him an ultimatum: get clean or never come back. Cardone checked himself into rehab, and although he says it didn’t address the underlying problem, he discovered he could get by without drugs. He vowed to never touch them again and to use his “addictive personality” to his advantage. Turning It Around After rehab, his boss gave him his job at the dealership back, a move that Cardone says probably saved his life. He worked harder than any other associate, and doubled his earnings in the process. “It wasn’t until I figured out how to make somebody else rich that I could be rich,” he says. Cardone finally left his sales job at the car dealership and moved to a sales consulting firm. “I treated my little department as, ‘This is my company within a company.’ And I wanted to make that company as a strong as possible,” he says. When he left the firm to go out on his own, it was because he felt there was no more opportunity to grow. So at 29 he started his first company, Cardone Automotive, a sales consulting business for the automotive industry. By 30, he’d already made his first million, but it didn’t come easy. “That was a company where I was cold-calling other businesses across the U.S. and Canada.” Cardone was working hard, doing what most entrepreneurs do and devoting all of his time to his business. “I was just hustling. Everything was a transaction...to get money and pay the taxes and have a little bit of money left over.” And even though his company was making money, year after year, Cardone knew he had to do more to become a true entrepreneur. ‘You’re Not a Business’ Cardone had never stopped to think about what an entrepreneur really is. Sure, he’d started a business and it was running smoothly, but he wasn’t reinvesting in it. He wasn’t thinking about marketing or expanding. Instead, he was following the old adage, hard work pays off. “All I was doing was knocking on doors. It was pure effort. I wasn’t spending money. I wouldn’t spend real money until I was 50 years old, about 10 years ago, when a guy said, ‘Bro, you’re not a business.’” Cardone knew it was time for a change if he wanted to achieve the kind of success he’d set his sights on. He had to rethink how to do business, how to expand, and how to get the word out. “The first thing I did was flipped everything. I could no longer be sales first. I had to be marketing first. Marketing and branding. Because to me, a business is, I can walk away from it and it will still operate. I was a guy. I was no different than when I was 30, just pounding doors.” That’s when he came up with the 10X Rule. The 10X Rule In 2011, Cardone published his personal business philosophy in his first book, called The 10X Rule: The Only Difference Between Success and Failure. The 10X Rule challenges readers to estimate the amount of time and effort it will take to achieve a goal and then multiply that estimate by 10. It also trains readers to think differently about what they can achieve in the first place. Cardone writes that most people underestimate themselves and what they can achieve. If they identify a goal, say making $100,000 in a fiscal year, they should multiply that by 10. “10X woke me up. 10X was not for the public. 10X was for me,” he says. He created it because he was trying to figure out why, despite his success as an entrepreneur, he wasn’t growing the way he had expected. “I work hard, I’ve got great products, I’ve got a great reputation, great reviews. People like me. They like my content. They like my content actually better than they like me. That might have been an exaggeration.” Is 10X totally achievable? Not necessarily, but that’s not really the point of the rule. It’s to shake up the way you perceive what’s possible. “It’s not achievable, but it’s worth it. You have four, five million dollars sitting in an account today. What if you had $50 million? It’s not achievable, but it’s worth going for it. It’s fun shit, man.” Even if you can’t achieve 10X, anything you hit will surpass your original goal. Investing in His Brand Cardone started toward his own 10X goal by spending the money he made, reinvesting in his business, starting or acquiring new businesses, and making himself known across industries. “People knew me in a particular industry. They didn’t know me in every industry. So the first thing that I took on was that I need to get people know me in every industry while I continue to knock on doors and pay my bills.” He began by writing books and business programs, which got his brand out there while generating their own money. His next two businesses were sales education platforms, Cardone Education and Cardone On-Demand, online training seminars that established him as a subject matter expert and drew in revenue from large and small businesses alike. He also started to grow his influence on social media. “I started with one follower, just like everybody else, and I was the follower. My second follower was my wife because I created an account for her on YouTube and said you’re going to follow me.” Currently, he has 6.1 million followers on Facebook, almost 395,000 followers on Twitter, 2 million followers on Instagram, and almost 1.2 million subscribers on YouTube. “I’ve grinded for every one of those followers. And delivered content to them so I could scale out.” His goal was to expand his reach beyond the U.S., and bring in a global audience for his 10x message. He now holds speaking engagements that attract thousands across the globe. He consults for major brands, and his videos on Grant Cardone TV get thousands of views. Investing in Himself The best business advice Cardone has ever received came not from someone in business, but from his mother, he once told CNBC. “She said, ‘The best investment you will ever make is in yourself. It’s a no-lose deal. It will always give you a return. Nobody can take it from you. It’s yours.’” Cardone looks for every opportunity to improve himself, whether that’s a charity event that helps him build new relationships or a seminar that will help him acquire new skills or refine old ones. “People should be invested in the beginning, just in themselves. Every chance you can get to go to something that could possibly help you. If it has a 1% chance of even adding to the value. Spend the money. Don’t sit on the money. Money’s useless.” He eschews saving money or even spending it on something most people wouldn’t think twice about—buying a house. “That’s the dumbest thing anybody could do. That’s the dumbest thing I ever did was buy a house. I bought a house and I didn’t improve myself. I spent more time picking furniture out than I did , “Hey, how do I fix me?” What’s 10x for Cardone, Now? So what’s the next big move for Cardone? Turning those millions into billions, of course. “10x is how do I do a billion dollars a year in income? And then how do I do $10 billion in real estate? How do I have a $10 billion real estate portfolio? How do I start competing with these banks so they’re like, you know what? We really don’t like all this noise you’re making. You’re a noisy guy. And we’re kind of getting tired of it.” Cardone’s ability to disrupt industries and make noise has landed him where he is today, as an influential sales trainer and real estate mogul. He turned an obsession into a reality and used a quirk in his personality to create a global empire. Advice for Budding Entrepreneurs Cardone now runs five privately held companies, including Cardone Capital, an $800 million real estate company. His 30-year success as an entrepreneur has given him the unique opportunity to share insights with other budding business moguls. He shared with us some of his best bits of advice. ‘Make money your battle cry.’ “Make money. Make money. Make money your battle cry. Go collect money. Don’t make money, just go collect money. Have a great product. Have a great service. Over-deliver. Collect money. Charge for it.” Put your team in the spotlight. “If you notice, I show off my people a lot. I don’t keep them behind the scenes. I’m like here, let’s have more than the Cardone show. Why do I do that? Where did I learn that? Great companies.” Don’t cling to your money—reinvest it. “The first sheet of paper I get every day is how much cash I have. That’s not for bragging rights. It’s because I want to get rid of it. It’s like trash. I want to get rid of this money. Money is being devalued worldwide right now. I didn’t say I have no reserves, but I don’t need $167 million.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Laurie Mega Key Takeaways How the death of Cardone’s father shaped him from a young age The winding road to overcoming drug addiction Why Cardone was fired from his car dealership job six times—and why he kept getting rehired How Cardone channeled his addictive personality into his work The launch of Cardone Automotive, and how it got him his first $1 million in a year Why Cardone decided to rethink the way he ran his business What the 10X rule means, and how it can be applied to any aspect of your life How Cardone leveled up his personal branding and became an influencer Why Cardone is passionate about the idea of investing in yourself A sneak peek into his latest book Be Obsessed or Be Average
Mon, 28 Oct 2019 - 721 - 273: The Making of a Fintech Unicorn, with Airwallex Founder Jack Zhang
How Jack Zhang and the Airwallex team built a billion-dollar company in just three years. By the time he was 30, Jack Zhang had already launched more than 10 businesses, with interests ranging from coffee to real estate. While many of them were successful, Zhang never got to the point where he left his full-time job. “I just tried to do different things to see if I could achieve something or feel happy about what I was doing,” he says, “but I hadn’t really found anything I was passionate about.” He certainly wasn’t afraid of the hard work and long hours that came from starting and sustaining businesses, saying that “work was never a torture.” Despite all that time and effort he invested in each startup, he ultimately felt that none of these businesses ever amounted to much more than a new way to make some extra money. Nothing ever became a greater purpose. With a passion for technology and a love for writing code, Zhang longed to do something within the tech sphere that would have a real impact. Like so many serial entrepreneurs, he finally found a business he was passionate about by looking at his own personal pain points. Zhang would become the co-founder and CEO of financial tech company Airwallex, which eliminates foreign transaction fees in an increasingly globalized world. In doing so, he’s created a company that, in just three years, entered the $1 billion club. While the creation of a fabled “unicorn” company was far more nitty-gritty and far less magical than one might imagine, he still owes a little bit of his success to that almighty and mystical force: luck. The Magic of the Perfect Team The idea for Airwallex came from the difficulties Zhang and one of the co-founders ran into while running import businesses between Asia and Australia. Sending international payments through a payment service provider (such as PayPal) not only slowed the process but piled on an unpleasant foreign transaction fee. So, with his background in tech and foreign exchange trading, Zhang and friend decided to tackle the problem themselves. They soon invited three other friends on board as co-founders, forming the Airwallex quintet: Jack Zhang, Jacob Dai, Ki-Lok Wong, Lucy Yueting Liu, and Max Li. With $1 million invested between Zhang and his first co-founder, along with an additional $2 million from outside investors, they began creating the first version of their product, geared toward the SME (small-to-medium-sized enterprise) market. “ believed in the team we had at the time, and believed in the company’s vision, and believed we were solving something quite important in the global scale,” Zhang says. And as the business grew, so did the team. But Zhang says that as they hired new people, they presented an intentional hurdle to ensure that new additions were passionate about their vision. Every new hire was required to take a pay cut to work at Airwallex. Zhang says that, for ambitious, passionate, top-tier talent, the money isn’t the deciding factor in where they choose to work. He believes they pay far more attention to whether the work aligns with their passions and if the scope of the work presents an exciting challenge. And these were the kinds of people Zhang wanted to hire. “I still think that the people willing to take a massive pay cut to join you are the most fundamental people who really believe in the vision,” he says. Even with that condition, Airwallex was able to scale from 80 to 320 employees in just 12 months. While hiring was going well and the business continued to grow, because the creation of Airwallex cost so much, they flew through the initial $3 million investment and needed another round of financing to go to market. Turns out, building an expansive, global financial network isn’t easy. Hard Work and a Little Luck “My personal experience is full of luck, really,” Zhang says, “but also we put an incredible amount of effort into the business in the first 12 months. Me and my co-founders slept in the office every day.” They put in long days, but that gave them a familiarity with the product that only comes from an all-in, hands-on approach. And the challenges didn’t stop Zhang and the rest of the Airwallex crew. It only made their belief in the product grow. “When you talk to investors, they can feel your genuine passion,” he says. “That honesty—that genuine transparency—about how you want to solve , and you can describe it in detail.” Investors ended up putting in another $13 million raised, but they were still only able to cover further development of the product. So they decided to begin pursuing other opportunities that could bring in revenue, rather than focusing solely on the SME market. They created a suite of APIs (application program interfaces) that would appeal to much larger corporations, positioning themselves as more of an infrastructure company. But they were still living on borrowed time. Zhang says that, for the first two-and-a-half years, they didn’t bring in any revenue, with only three to six months of survival guaranteed at any given time. And that’s where Lady Luck collided with crazy hard work, and the first signs of the unicorn-to-be showed its face. “We just went from almost no transactions to processing billions of transactions a month,” Zhang says. While long hours and business savvy played a major role in his company’s success, Zhang is also quick to credit forces beyond his control. He says plain ’ol luck is one of the reasons that his business took off, which perhaps accounts for Airwallex’s good timing and sudden influx of users. Gazing Into the Future Because Zhang and the rest of the Airwallex team focused on building a strong foundation and infrastructure, they were able to attract high-profile clients like MasterCard, and retain them when they came on board. These important connections then put Zhang in the room with other top executives who were excited to try out Airwallex in their own businesses. And as the infrastructure grew through these strategic investments, it only added value to the business. Today, Airwallex has built connectivity with more than 50 banks across the world, is equipped for international banking through accounts unhindered by borders, and grants access to competitive exchange rates and international payments, with more features on the horizon. Zhang says he is always looking at least five years out, planning for the future of the company. He also invests time in learning from others who have been in his shoes by attending conferences and interviewing other CEOs. “I spend a lot of time interviewing people to learn from people,” he says. “Whether they are good or bad, there are things I can learn.” After three years of explosive growth, and now with the added pressure of leading a billion-dollar company, Zhang isn’t ready to slow down. With his “get shit done and grow” mentality, he plans to continue taking Airwallex to new heights. “Not everyone can do it. You have to sacrifice a lot of things," Zhang says. “Are you willing to sacrifice your house, your time with family, everything to do that? If the answer is yes, then maybe you are born to be an entrepreneur.” To learn more about Airwallex, check out airwallex.com. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways Why Zhang didn’t leave his full-time job, even after launching 10 side businesses The problem Zhang encountered that inspired the idea for fintech company Airwallex Why every new Airwallex hire was required to take a pay cut How a pinch of luck and tons of hard work eventually paid off What Zhang believes inspired investors to put another $13 million into Airwallex From no revenue at all to showing signs of unicorn status How Airwallex started to attract high-profile customers like MasterCard The journey to securing a $1 billion valuation in three years Why Zhang believes in planning at least five years out
Tue, 22 Oct 2019 - 720 - 272: The Sweet Smell of Success: From Bankrupt to $100 Million, With Poo-Pourri’s Suzy Batiz
Suzy Batiz’s journey from bankruptcy to founding Poo-Pourri, a $100 million business that’s become a household name. For many consumers, the initial reaction to Suzy Batiz’s product is laughter. I know it was for me. I remember back in 2008, my mother waving me over to the checkout register of our favorite boutique soap shop, giggling uncontrollably. I saw the tiny bottle and laughed out loud myself. Then handed one to the cashier. After all, you just can’t walk away from a product called Poo-Pourri. But it’s Batiz who has had the last laugh. A little over a decade since it launched, Poo-Pourri has become a household name and a $100 million business. The all-natural air freshening spray, once a boutique-only brand, is now sold by major retailers like Target, Costco, Walgreens, and more. Poo-Pourri has taken the world by sweet-smelling storm. Given her success, you probably wouldn’t have guessed that Batiz had previously gone bankrupt (twice!) and once swore never to launch another company ever again. With a list of former businesses so long she can’t even name them all, Batiz had always come up short in pursuit of her big break. It wasn’t until she failed hardest and stepped away from the world of entrepreneurship entirely that she had her life-changing epiphany. The journey from broke to multi-millionaire wasn’t an easy one for Batiz. But her commitment to creativity, willingness to remain flexible, and her indomitable spirit helped her to shake the stink of failure and bring lovely aromas to bathrooms around the world. Sh*t Happens For years, Batiz was the kind of person who always had a full-time job and a side hustle, with another side-hustle in mind should the current one fail. “I had a lot of businesses, and nothing seemed to really work long term. Nothing stuck,” she says. “But I was desperately trying.” She’d owned a clothing store, a beauty salon, and a tanning salon to name a few, and she grew accustomed to taking big risks in the process. She learned early on how to bounce back from failure. For example, Batiz went bankrupt for the first time before she was even old enough to drink. At 19, she took on a bridal salon, and at 20, the salon had gone under. But that didn’t slow her down. “I was in this frantic race,” she says. “I was doing everything that you’re supposed to do, you know, pushing through.” She continued trying new business ideas until, in 1999, she experienced her second bankruptcy. This one hurt far more than the first. Batiz had sunk much of her own money into building Greener Grass, a recruiting platform designed to match employees with the right company cultures. If views were dollars, she would have been swimming in cash, but when the stock market crashed in 2001, so did her fledgling business. Batiz lost everything. “They took away the big house, the two cars, and I had to face myself,” she says. Batiz realized that all her life, she’d been chasing success—which really meant an overflowing bank account—without taking the time to find out what she was actually interested in. “What’s worse than losing everything is losing everything and realizing you didn’t even have fun to begin with,” she says. So, Batiz called it quits on the business world and decided to take some time away from it all for herself. During those years of self-discovery, she found the world of essential oils. A Breath of Fresh Air Ordinarily, if dinner party conversation trended toward discussing bathroom odor, it would be bad news for everyone involved. But when Batiz’s brother-in-law began to wonder over dinner if that unpleasant smell could be trapped and eradicated, sparks fired in Batiz’s mind. After the time she’d spent working with essential oils, she realized she might be able to create something that would do exactly that. Off she rushed to her kitchen to spend nine months concocting the perfect blend of oils that would one day become Poo-Pourri. In January 2007, she sold her first bottle. “I really wasn’t interested in owning another business,” Batiz says. “I had sworn off business, but the product was so good, I had to bring it to market.” She started with a website, and before long the wholesale requests came flooding in. Within a year, she’d brought in a million dollars in revenue. And it all happened through word of mouth. “When you have an idea that is great, people tell other people about it,” she says. “I see a lot of people in founder stages stop at a good idea. And if you just have a good idea, it’s like pushing a train uphill. But when you have a great idea, people will stand on the rooftops and tell other people about it.” Boutiques everywhere began selling little spray bottles of the cleverly named product, and before long, larger chains followed suit. Seven years after launching, Poo-Pourri was bringing in $8 million in revenue, Batiz spent 12 weeks a year in Maui, and she truly felt like she was living the dream. But she believed her product could truly breakthrough and become the premier bathroom air freshener if she just made a big enough splash. So, she decided to partner with the Harmon Brothers, the well-known creators of viral advertising videos, to create one of her own. You may recognize the Harmon Brothers’ name from their hit ad for Squatty Potty (yes the one with the unicorn you-know-what), or the Purple Mattresses “egg test” video. In September 2013, the now-iconic video of a sassy-yet-classy socialite in a turquoise dress proclaiming that “our business is to make it smell like your business never even happened,” burst onto the scene. In just four days, Batiz’s entire inventory had sold out, with $4 million in backorders waiting their turn to be fulfilled. With the explosion in sales, Batiz knew it was time to invest all of her attention in creating a stable structure for her business, while still maintaining her company culture. But how? Fear of Being Number Two There are three words that define everything done at Poo-Pourri: defy, liberate, and transform. “We don’t do things status quo, and we don’t ever want to,” Batiz says. “We’re over here shakin’ shit up.” Batiz strongly believes in hiring employees who can become experts in their areas without micromanaging, and can make big decisions. Of course, with that freedom comes the responsibility of owning up when those decisions don’t pan out. But Batiz believes the best idea can come from anyone or anywhere, so she wants to make sure every employee feels comfortable taking initiative. But above all, Batiz believes the thing that sets Poo-Pourri above the big air freshener companies is their ability to shift direction at a moment's notice. She calls that agility their “superpower.” So when the time came to build structure into the business, she knew it couldn’t come with the rigidity some organizations hold to. “We are this young, rebel kind of company,” Batiz says, “and how do you put some procedures in place, yet keep this rebel nature?” She tried bringing in a string of leaders, but with each attempt to establish a more defined system, the company’s culture died a little. So, Batiz had to find a way to balance shift-on-a-dime agility with much-needed stability. She realized that much of her stability could come from within her supply line. By keeping six months worth of sprayers (a part of the product that can take up to 16 weeks to arrive) in stock, she’d be ready for the next boom when it came. While the company’s edginess has provided a competitive advantage, that need to be the fastest or the hippest has also been a liability at times. As a rule, Batiz tries not to worry about the competition, but she once became aware that a product similar to hers was going to hit the market, using an automatic dispenser. In a fit of competitive panic, her company tried to release its own version, pushing through timelines and moving far quicker than they should have to keep up. As a result, they sold 500,000 faulty units to major retailers and had to take them all back, losing millions of dollars and three-quarters of a year in creative energy. “It was a really good lesson for us to keep our blinders on and stop worrying about what other people are doing,” Batiz says. “Sometimes the best lessons cost us a lot of money or time or energy. The key is to learn.” The Future Smells Sweet As Batiz heads into the future, she’s not that focused on expanding the Poo-Pourri line, although they have branched out here and there, including a shoe freshener line, and some clever bathroom art. “I’m not worried about the dollars as much as remaining king of the hill of what I’ve created,” she says. The focus on the core product is clear, as Poo-Pourri somehow manages to create a bathroom air freshener that is irreverent but not crass, all while avoiding the grandma’s house aesthetic of most bathroom products. The smells are creative, the names are funny, the packaging sharp and sometimes even beautiful. Some could even be mistaken for luxury items. There’s an obvious level of care here placed on something we may not like to think about, but we all have to deal with. Batiz hopes to achieve and maintain the level of awareness brands like Kleenex and Band-Aid have, becoming totally synonymous with the product they sell. “What I want is when you have a “before you go” spray—knowing other people will enter the market—that they go, ‘Oh, do you have a Poo-Pourri,’” she says. “We are that iconic brand.” To achieve such iconic status without a cent from investors is nothing to sniff at. Batiz says that when times get tough, she sees many entrepreneurs race to investors for help. She, on the other hand, prefers to keep total control of her business and figure things out on her own. “If you have a problem with the problems, that’s a problem!” she says, laughing. “As an entrepreneur, all you do every day is solve problems, and they’re only going to get bigger.” But despite the big problems she’s faced both in her current role and past businesses, Batiz has emerged triumphant. This year, Poo-Pourri is on track to bring in $100 million in revenue. The boutique essential oil concoction with a cheeky name now sits on bathroom counters around the globe. And she’s hoping the scent will continue to spread. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways The many side hustles of Batiz, and the lessons in failure they taught her How Batiz went bankrupt in her teens The frantic race to find success How a second bankruptcy forced Batiz to take a step back and self reflect The question that sparked the idea for Poo-Pourri The power of word-of-mouth, and how it brought in $1 million in revenue in the first year How a partnership with the Harmon Brothers took Poo-Pourri to the next level Lessons learned on balancing structure with innovative company culture Why Batiz believes it’s important to not worry about the competition How Poo-Pourri got on track to $100 million in revenue this year A peek into Supernatural, Batiz’s newest company that sells home-cleaning products
Wed, 16 Oct 2019 - 719 - 269: The Rise of a Cannabis Mogul, with Reef and OneQor Founder Matthew Morgan
Cannabis King How Matt Morgan, a misfit from Montana, took the booming marijuana industry by storm. A typical life was not in the cards for Matt Morgan. Fortunately, he found an atypical career. Growing up, he was fired from every traditional job he ever had, and when he tried college, he lasted just 10 days before dropping out. Next, Morgan became an electrician apprentice at the age of 19, still hoping to find a career path that he might enjoy. But like his previous ventures, this too was short-lived and he resigned after a year. Having always possessed an entrepreneurial flair, Morgan did find quick success as a realtor, which would lead him in a roundabout way to the world of legalized marijuana. Finally, it was in the Wild West of the cannabis boom where Morgan found his home. Within a three-and-a-half year period, Morgan would become one of the most recognizable leaders in the cannabis industry. He is the founder of multiple cannabis companies, such as Bloom Dispensaries and Reef Dispensaries, with the latter becoming the first in the world to hit a $100 million revenue run rate. In 2018, Morgan was named one of the most influential people in cannabis by High Times. But as we all know, the highs are so often preceded by lows, and had there not been an financial crisis in 2008, he may have never entered the business in the first place. Taste of Entrepreneurship Growing up in Missoula, Montana, Morgan had a hard time finding his niche in the working world, but he did find one thing that he was quite good at, which ended up being a gateway drug to starting his own business—real estate. “ really opened up my eyes to entrepreneurship,” Morgan says. “Running your own business. You know, basically, eat what you kill. It’s totally up to you, whether you’re going to survive or not. That’s the type of environment that I thrive in.” And thrive he did. By the time he hit 22, Morgan became the managing partner of his own real estate company. By early 2008, he had begun to take notice that prospective homebuyers were reaching out to him with very specific guidelines on the type of home they wanted to purchase. Not only were they asking for roughly the same amount of land, they were all specifically requesting that each home have a shop out back — a detached garage or external structure that could be used as a hobby space. And if it didn’t have a shop, he didn’t have a deal. This left Morgan perplexed. He had met most of their demands, and more times than not a deal fell through because of this one caveat. This finally left him to ask himself, “what’s so important about these shops?” At the time, Montana’s legal cannabis industry had just started to boom, and people wanted in with a place to grow. This was an industry that Morgan was not in tune with at the time, but he started to pay attention to. Then the financial crisis of 2008 hit and Morgan’s real estate business was dead in its tracks. He needed a new play. Despite his youth, Morgan was old enough to have seen one tech boom and one housing boom, and had an itch that he may be in the presence of the next gold rush. “All these crazy people talking about this marijuana stuff, there must be something to it,” Morgan says. “So I started digging into it.” One day, after months of research, it became clear to him that marijuana was going to be the next big boom. “That day I went and found a light and a warehouse and I was damned if I wasn’t going to grow some marijuana, “ Morgan says. Growing Pains With the exception of spending some time on his grandparent’s farm, Morgan wasn’t that experienced in horticulture. He knew the basics of how to grow some crops, but after looking around at the competition, he felt he could succeed in marijuana. “How hard could this be?” Morgan says. “There’s a bunch of hippies in tie-dye with hoop houses out in the wilderness growing, you know, grade-A cannabis. I’m sure I can figure it out.” He didn’t. At least not at first. Morgan set up a small operation in his garage, and after about 15 failed attempts, he finally found a grow system that worked. Then in 2009, he teamed up with another grower in Montana and they opened a state-of-the-art, 15,000-square-foot cultivation facility, one of the largest in the state at the time. This new abundance of space gave them a controlled environment to grow a significant harvest of plants. Within Montana’s medicinal marijuana caregiver program, as long as you had a patient card, you were legally allowed to grow six plants per patient that you were a caregiver for. With Morgan’s patient list growing to over 500, he was legally growing over 15,000 plants. Not bad for a guy who didn’t know much about the business just one year prior. But just as quickly as he had struck gold, a new law would bring things grinding to a halt. Next Stop: Arizona Per Morgan, in 2009 Missoula’s population was over 65,000 people and the city was home to over 60 dispensaries. That equates to around one dispensary for every thousand people. In short, that’s a lot of dispensaries. The state began to worry that the new industry was growing too quickly. So to help slow it down, Montana had an emergency legislative session and reversed its laws so that a caregiver could now only have three patients total. Instead of having 15,000 plants, Morgan was suddenly only allowed to have 18 plants total. Once again, Morgan was stopped dead in his tracks. Feeling the cons outweighed the pros of running the facility in violation of the new laws, he shut down his operation in 2010. Having tasted the fruits of his labor, he turned his focus elsewhere. He immediately began to look around the country for states with more favorable marijuana laws so he could scale a business. “I knew I had the skills sets at that point, I just needed the right vehicle and platform to do so,” Morgan says. Arizona ended up offering that platform. The Grand Canyon State was about to roll out an extremely favorable and innovative program that was to be the first of its kind, and Morgan wanted to be a part of it. Morgan says the state’s population was also substantially larger than Montana’s, and it was going to allow a permit holder to have unlimited plants, unlimited square footage to grow, and unlimited weight in product. He felt like it was a “dream” and couldn’t wait to head south. “I literally packed up all my stuff into my Chevy Silverado and I drove down to Arizona within that week,” Morgan says. “And literally, probably the best decision I’ve ever made. I was 25 years old.” Upon his arrival, Morgan opened up a chain of hydroponics stores to help gain a foothold in the area and to network with the locals as he waited for the new laws to roll out. While doing so, he befriended the son of a senator who would become key in helping him land one of the state’s limited marijuana licenses. (Morgan chooses not to divulge the senator’s name during our interview.) “These licenses were looked at as a valuable asset,” Morgan says. “There’s no way these guys are giving some kid from Montana one of these licenses that could end up being worth, you know, millions of dollars.” His chances may have been slim, but a senator’s chances were very good. After agreeing to terms, Morgan says he and the senator’s son partnered up and convinced the senator to put his name on the application. Soon thereafter, the two won a Sedona license through a lottery system and within four weeks after that, they purchased a Phoenix license on terms from its winner for $450,000. With two licenses under their belt, Bloom Dispensaries was well underway. Like Morgan’s real estate business, Bloom took off, and in under a year grew to 100 employees and was generating $1 million in revenue a month. Everyone came calling. By 2013, Bloom was drawing national attention and was destroying its competition. This led to private equity firms and wealthy families to reach out to Morgan for advice and potential opportunities. “People were starting to look at marijuana,” Morgan says. “It was still kind of in the shadows, but it was starting to come to the light.” Due to Morgan’s knowledge in the space and Bloom’s exponential growth, companies wanted to replicate his success and learn his secrets. However, Morgan says one such wealthy family, worth billions, wanted to do more than talk. They wanted Morgan and offered to purchase Bloom in order to get him. However, after negotiations between the family and Bloom’s investors fell through, the family extended a proposal to only Morgan for him to come and launch their new venture. Realizing a good opportunity when he saw it, Morgan accepted their offer. As for Bloom, he divested his shares and gave the company to his partner in order to remain on good terms. Now armed with over $100 million in capital from his new partners, Reef Dispensaries was born. And its growth was on a whole other level. “I came out of the cannon like a cannonball,” Morgan says. Reef quickly expanded to 200,000 square feet of cultivation, had two extraction laboratories, and six retail dispensaries, with one of them becoming the busiest dispensary in the world. And to top it off, Reef became the first cannabis company in the world to hit a $100 million run rate. Despite the success Morgan was able to create at Reef, he says tensions began to grow between him and his partners. After months of disagreements, Morgan resigned as CEO of the company in November 2017, forcing a buyout and shocking the cannabis industry. The Next Frontier Morgan’s next major move took some time to develop. Much like the beginnings of Bloom, an entrepreneur reached out to Morgan about a potential partnership. However this time, the individual challenged Morgan to look at the other chemical compounds in the cannabis plant other than THC, and to research how they were being used in the healthcare space. After spending close to a year discussing healthcare and the science on how to use cannabinoids, the two of them founded Oneqor Technologies. “It’s really a hybrid of a biotech pharma company that’s leaning heavily on cannabinoids in the cannabis plant, excluding THC, the psychoactive one,” Morgan says. After spending 10 years in the THC business, Morgan says he was becoming bored with the industry. Oneqor presents something new and exciting for him, plus he’s able to operate it almost like any other typical business. Working in a business that doesn’t deal with THC is a whole new frontier, and one with barely any restrictions. And without the restrictions, Morgan’s ambitions grew. On top of helping brands such as GNC create private label CBD products, Morgan wants Oneqor to revolutionize the market. He hopes to dominate the cannabinoid industry in the same way Intel did with computers by becoming the secondary brand. “If you see a product and you know it has cannabinoids in it, I don’t want it to say CBD inside,” Morgan says. “I want it to say Oneqor inside.” Matt Morgan’s Playbook for Building a Business In a span of less than 10 years, Matt Morgan became a leader in the cannabis industry by creating Bloom Dispensaries and Reef Dispensaries, along with his new venture Oneqor Technologies. After some early growing pains, Morgan came up with his own playbook on how to grow a successful business. Believe In Something Many founders, especially first-time entrepreneurs, tend to look at only the financial aspect of creating a business, rather than if it’s something they actually want to do. Other times, people may start a company because they feel that the idea might be a fun thing to do. Morgan believes, that although the financial upside is something to consider, you must also believe in the product and have passion for it if you’re looking to build a company. Otherwise, you may lose interest and not do the things needed to succeed. “You shouldn’t pick something you want to do because you think it’s cool,” Morgan says. “You should pick something you do because you believe in it and you see a lot of upside potential. Or else, what are you doing it for?” Look at the CEO Morgan credits much of his early success to the teams he’s built. From building a C-suite team to hiring the employees for his stores, he believes that everyone is important. And to find those right employees, it starts at the top with the CEO. That means either looking within yourself if you’re the CEO, or by sitting down with your leader and asking them what their core values are. Skill sets are important, but if your employees don’t share the same values, the culture won’t work. “You want to hire people that have the same core values as you, because you can’t teach people core values,” Morgan says. “They’re born with that…or their environment, whatever it may be. You can teach people anything, but you can’t teach them that.” Be Uncomfortable Another trait that Morgan says led to his success is the ability to go outside his comfort zone. He used to be a nervous wreck, he says, but wanted to rid himself of that anxiety. So beginning from the age of 20 until he was 28, he put himself in uncomfortable situations daily in order to grow as a person. This not only helped in his everyday life, but also as a professional and leader. It helped him with everything from speaking in front of 10,000 people to raising capital for his businesses. In order to succeed, you must be willing to put yourself in uncomfortable situations and get to the point where you’re calm and collected in every situation. “Human beings have a defense mechanism and they don’t like getting out of their comfort zone,” Morgan says. “You don’t know what to say, what to do, how to operate. But that’s really your biggest growth potential as a human being, is outside of your comfort zone.” Maintain Focus Among the Chaos Founding your own startup can come with lots of unexpected surprises. Especially within an emerging field such as the cannabis industry, things can become chaotic as the rules are still being established. Unfortunately, there will be a lot of chaos around you, a lot of drama, and a lot of arguing. But the only thing you can do is figure out how to control your reaction to it and always remain focused on your goals. Find what makes you relaxed and focused, and master it. “One thing that has really helped me with that is meditating,” Morgan says. “It’s really helped me, you know, keep my concentration, collect my thoughts. … There’s not really anything that can rock me mentally.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Nick Allen Key Takeaways A look into Morgan’s struggles to fit into the traditional working world How real estate became the gateway drug to entrepreneurship The impact of the financial crisis of 2008, and how it led Morgan into the cannabis industry From 15 failed attempts at growing marijuana to a patient list of over 500 How a change in Montana’s laws sent Morgan’s business to Arizona The political relationships that helped the launch of Bloom Dispensaries How Bloom Dispensaries reached $1 million in revenue and dominated the cannabis industry Why Morgan decided to sell Bloom and launch Reef Dispensaries with new partners Growing Reef Dispensaries to become the first cannabis company to hit a $100 million run rate Behind Morgan’s decision to quit as Reef Dispensaries’ CEO and his next step with OneQor
Wed, 25 Sep 2019 - 718 - 268: How Life Coach Marie Forleo Figured Out Her Life, and Empowers Others to Do the Same
Figuring It Out Why Marie Forleo walked away from Wall Street to help people build lives they love. Marie Forleo was on the brink of the American dream. After graduating as valedictorian from Seton Hall University, making her the first in her family to graduate from college, she’d landed her first post-grad job on the floor of the New York Stock Exchange. Her peers were millionaires, and she was on track to become one, too. But that dream came crashing down after a panic attack halfway through a workday left her sobbing in the pews of the nearest church. Just six months into her job, the little voice in her head was telling her that she was on the wrong path, and she knew she had to make a change. Of course, she was petrified by the idea of leaving her job behind (especially with the mountain of debt that came with the pursuit of the American dream), and she didn’t know if she’d ever find something that would truly fulfill her. Determined to figure it out, Forleo eventually made her way to a new career path that would not only bring her happiness, but would also enrich the lives of many others experiencing their own difficulties. Today, Forleo inspires millions through her work as a life coach. She has over 578,000 YouTube subscribers on her award-winning channel, MarieTV, with over 49 million views spanning 195 countries. She’s also ushered 55,000 students through her eight-week marketing school for business owners called B-School. She’s even been interviewed by Oprah herself. And now, Forleo’s got a new book coming out, Everything Is Figureoutable, in which she unpacks the life lessons that she considers to be the secrets to her own success. While coaching wasn’t her next, or even her next-next career choice after leaving Wall Street in the dust, by trusting her gut, advice from her parents, and the tiny voice of truth in her head, she found her way there eventually and built a life she loved. Struggling to Start When she was younger, Forleo dreamed of becoming a Disney animator or a fashion designer. But amid her disillusion with the job on Wall Street, all she could think was, “What else am I going to do?” With her head spinning and stomach performing an intricate gymnastics routine, she called her dad. She was horrified by the idea of disappointing him, but didn’t know what else to do. “I was quite broken,” she says. She told her dad about how unfulfilled her coworkers seemed, her growing fear that she would end up like them, and her unmet desire to do something that brought joy to herself and others. After baring her soul, Forleo nervously waited for her dad’s response. What he said would shape the course of her entire life. He reminded her that she would be working for the next 40 years or more of her life, and she needed to spend that valuable time doing something she loved. She quit her job two weeks later. But as little voices in our heads often do, Forleo’s told her just enough to get her out the door, but didn’t offer much insight on what she should do next. She loved design, but was also fascinated by business, so she decided to give the world of magazine publishing a go. Through a temp agency, she got an ad sales assistant position at Gourmet magazine. Forleo loved her boss and publisher, and, with a desk conveniently located right next to the test kitchen, she believed she had finally found her niche. But six months in, the voices of doubt took up their chorus once again. “I couldn’t deny the fact that I didn’t want to be there,” she says. Forleo wondered whether a more creative role in the magazine industry would quiet the voices, so she snagged a job on the editorial team of Mademoiselle. Sure enough, when she reached that six-month hurdle, the voices told her that, once again, it was time to move on. Discouraged, frustrated, and afraid for her future, Forleo wondered if there was just something wrong with her. Why couldn’t she find any work that made her truly happy? A Calling for Coaching The profession of life coaching wasn’t something most college graduates in the 1990s considered or even knew existed. In fact, Thomas Leonard, who is commonly called the father of the profession, only began his work in the 1980s. So when Forleo stumbled across an article about life coaching in the early 2000s, it was as if she was uncovering a buried treasure. “When I read this article, I swear to you, it was like the clouds parted and cherubs came out and they were shooting little sunbeams into my chest,” she says. At just 23, Forleo questioned whether she had anything to offer as a coach, but she says something about it just felt right. So she enrolled immediately in a three-year, part-time training program. When the six-month wall that had diverted her path so many times arrived, she pushed through it like tissue paper. And for the last two decades, Forleo’s “move along” voices have been silent. In 2001, she launched her first weekly newsletter, called Magical Moments, which attracted a modest following. Slowly, but steadily, her reach grew. Forleo attributes much of her success to her tremendous patience, calling herself “a worker bee.” Her skills and audience grew, and she launched new, ever-evolving platforms. As the 2000s rolled into the 2010s, Forleo launched B-School, her online course on marketing for business owners, as well as her wildly successful YouTube channel, MarieTV. But her journey wasn’t all unicorns and balloons. She encountered moments of failure (like the time she tried to build a custom coaching platform without a lick of relevant tech expertise), but each one taught her a valuable lesson. “I realized the power of positive quitting,” she says. “I think there’s a big distinction between giving up and moving on.” She also learned the principal of, as she puts it, “simplifying to amplify.” As Forleo began to draw international attention for the work she was doing, she felt the pressure to create more, attend more, and give more. Pulled in so many directions, the beginnings of burnout set in and she felt she wasn’t giving her best to her flourishing business. “Having a really successful, thriving business is not just about the money,” she says, emphasizing each word. “How does your team operate? How do they feel showing up to work every day? How do you, as the founder, feel? Are you so stressed out that you want to run away and hate that you even started this thing?” So in 2013, she decided to scale back and focus instead on the things that enabled her to make the most impact. She says she killed over a million dollars in revenue with a snap of her fingers. But the flood of creativity and renewed sense of direction that followed laid the groundwork for her to rapidly recuperate that amount and much more. So when others tell her that she should be investing more time in a particular platform or conference or trend that she feels will take her off track, she has no problem saying no. “I’m not out there to chase things,” she says. “I’m not going after vanity metrics. I give no shits about any of that. The metrics that matter to me are the lives I can impact, the profitability of the company, the difference I can make through our philanthropic endeavors, and am I actually enjoying my life.” She also knows who to listen to when considering what to add to her business—her customers. “The feedback, the iteration, the constantly making it better is how you get to something that’s legendary,” she says. “And I think folks don’t have the patience or the ability to focus over time and the desire to make something extraordinary, and that’s why we have so much mediocre.” Forleo says that the Customer Happiness department is the largest chunk of her 30-member team because they are committed to responding to every single email received. So, for example, when she noticed an influx of emails from MarieTV viewers lamenting that they most enjoyed listening to her show in the car as they drove but hated running up their data, she created a podcast to solve the problem. And if anything is clearly evident, it’s that Forleo is, to her core, a committed problem solver, a trait she attributes to her enterprising mother. Sharing Her Secret to Success Forleo’s mom, the child of two alcoholic parents from the projects of north New Jersey, “learned by necessity how to stretch a dollar bill around the block like five times.” She was always looking for ways to save money, so if something was broken and the price for a professional to fix it was too steep, she would fix it herself. From a leaky roof to cracked bathroom tiles, lack of experience or a college degree didn’t keep Forleo’s mother from tackling even the most complicated projects. One day, Forleo found her mom hard at work fixing her favorite radio, a Tropicana orange with a red and white straw for an antenna. Staring at the fully disassembled radio, amazed, Forleo asked her mom how she planned to put it back together again. Her mom told her that nothing is too complicated if you just jump in and get to work, because “everything is figureoutable.” That conviction lodged itself deep in Forleo’s heart, and it carried her through everything life threw at her, from difficult relationships to launching her own business. So when the time came to write her second book, she knew she had to share this principle with the world. In Everything Is Figureoutable, which comes out this month, Forleo builds on three simple rules: All problems (or dreams) are figureoutable. If a problem isn’t figureoutable, it’s not a problem. It’s a fact of life. You may not care enough to solve this particular problem or reach this particular dream, and that’s OK. Find something you really do care about, and go back to Rule #1. While these principles can be used in every aspect of life, Forleo feels they are particularly applicable to entrepreneurship, a career path she feels is often “over-glammed.” She says that being an entrepreneur is a lot harder than it looks because it’s all about suffering in the short term to reach long-term goals, and sometimes that period of suffering can feel neverending. “I think we all really feel stuck in our lives from time to time, but if you do embed this belief that everything really is figureoutable, it gives you this energy to get up and go again,” she says. Forleo also insists that the ability to change direction is essential for a business owner. “To survive as an entrepreneur, you have to be incredibly nimble and flexible and to keep evolving yourself,” she says. “Otherwise, you’ll get left in the dust.” And she advises any founders who are living in fear or doubt about their business or career path to pull out a trusty journal and write it all down. “We, just as humans, underestimate the value of writing things out and writing things down,” she says. “When it comes to feeling stuck—when it comes to feeling fear, which can stop many of us—we allow it to stay amorphous and kind of shapeless like a boogeyman in our head, rather than being concrete and specific about it on the page.” Forleo’s particular brand of down-to-earth optimism has inspired millions, and, through her new book, she is excited by a new opportunity to share a piece of how she achieved her dreams. As Forleo’s business continues to grow, expand and evolve, one thing has remained ever constant: the belief that her audience can fashion a life they love, just like she did. Because, after all, everything is figureoutable. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways Why Forleo was miserable living the American dream The advice Forleo received from her dad that empowered her to walk away from her job on Wall Street Her brief stint in magazine ad sales and editorial work How Forleo discovered the world of life coaching The journey of scaling a newsletter, online course, and YouTube channel to an international level Forleo’s thoughts on positive quitting and the motto “simplify to amplify” Why Forleo decided to scale back on her business and kill over a million dollars in revenue in the process Who Forleo turned to when deciding the new direction for her business The valuable lesson Forleo learned from her mom, which inspired the premise for her new book Everything is Figureoutable Forleo’s survival tips for entrepreneurs
Mon, 16 Sep 2019 - 717 - 266: How Warby Parker Changed the Way We Shop for Glasses, With Founders Neil Blumenthal and Dave Gilboa
Why are glasses so expensive? Dave Gilboa could not stop asking himself that question. After leaving his $700 pair of eyeglasses on an airplane while returning from Southeast Asia, he could not wrap his head around why a technology that was so archaic could cost him more than his iPhone. Within his first weeks as an MBA student at the Wharton School of Business, he repeatedly brought this question up among some of his new peers. Gilboa, along with fellow students Neil Blumenthal, Andrew Hunt, and Jeff Raider, had all shared in the pain of losing or breaking glasses and had all agreed: the high markup made no sense. Inspired by Gilboa’s pricey misfortune, the four of them founded Warby Parker. Now led by co-CEOs Gilboa and Blumenthal, the billion-dollar empire with 2,000 employees is revolutionizing the prescription glasses industry by selling stylish eyewear online at affordable prices. The New York City-based company is also on a mission to combat the global problem of impaired vision through its charitable Buy a Pair, Give a Pair program. Since the company’s start, the program has distributed over 5 million pairs of glasses to those in need by donating a pair of glasses for every one sold. But long before they could build an ecommerce giant, the team would first have to learn how to even build a website. A Moment of Clarity Prior to going to Wharton, all four co-founders had already spent some considerable time in the workforce. This allowed for each of them to gain valuable real-world experience, and it helped guide them to understanding if they had an actual problem to solve and a business to move forward with. However, it was Blumenthal’s experience while running the nonprofit VisionSpring that would become crucial to the early concept of Warby Parker. During his time with the company, they trained low-income women in the developing world to start their own businesses. Participants were to take their new skillsets back to their rural communities and administer vision screenings and sell glasses. But it was something else Blumenthal had witnessed that would have a lasting impression on him. “I had been to the factories,” Blumenthal says. “Here I was producing glasses for people who were making less than four dollars a day, but 10 feet away were factories that were producing…the $700 pair of glasses Dave had. So we knew something was awry.” A light bulb went off and the classmates soon pulled together $120,000 and went to work on developing Warby Parker in 2008. The problem they wanted to solve: How can we make glasses we want, but at a low cost? Eager to launch, but more focused on preparation and planning, the founders began sketching out all the main aspects of the company. With limited funding, they knew they’d have to really refine and plan each facet of their business before revealing it to the public. Their first steps were to design glasses that they’d want to wear and then find a manufacturer who could produce them for less, starting with Blumenthal’s connections. The next step would be trying to figure out how to sell their glasses directly to the consumer. The answer was simple. “This magical thing called the internet,” Blumenthal says. The founders all knew that ecommerce was an innovation they wanted to take advantage of for their direct-to-consumer brand. Had they come up with this idea 10 years prior, the company may not have gone any further than an idea. With a brick-and-mortar store requiring a lease, utilities, and other costs, they knew it would be hard to make their new dream a reality with limited capital. “If we did , we would have one location that we might be able to attract some local customers, but with the power of the internet, we were able to all of a sudden, launch a store to the entire US,” Gilboa says. But there was a small problem. None of them knew how to build an online store, nor did they understand the many other details that came with creating an online shopping experience. “We started talking to friends on how you build a website,” Blumenthal says. “And then we started visiting a bunch of websites that we would normally already go to. But now with a critical eye, we were understanding, okay, what’s the shopping flow?” Over the next year and a half, the four of them kept chipping away at all the details of Warby Parker. Nothing got overlooked. They spent countless hours going over the vision and mission of the company, and worked on all the brand architecture of what they wanted their company to be. In addition, the group constantly sought out feedback from friends and professors. Could something like this work? One glaring concern that kept surfacing was whether or not a person would actually buy a pair of glasses online. With fit being so important, it would be hard for a person to gauge on a computer screen if a pair of glasses would fit their face and feel comfortable. This forced them to reconsider their business model, and ever the problem solvers, the home try-on program was born. Breaking new ground, Warby Parker would allow a customer to select five pairs of glasses from the website and then ship them free of charge, allowing five days to test out the frames. This was a major ecommerce innovation that would get them past the biggest challenge facing the business’s core premise. But there was one other challenge that would prove nearly impossible to overcome—agreeing on a name. Thank You, Jack Prior to Warby Parker’s launch, brands had already started to emerge that were selling glasses online. Customers were able to purchase glasses from sites such as 39DollarGlasses.com and FramesDirect.com, but they were sacrificing other elements, such as quality and customer service, for their lower prices. The founders wanted to take a different approach with their company. They wanted to launch a fashion brand that not only offered great quality, prices, and service, but also one that made the world a better place. The company vision was clear and ambitious. But they could not come up with a name. “We wanted kind of a proper name and didn’t think Gilboa-Blumenthal, our last names, really rolled off the tongue,” Gilboa says. They sought out inspiration and ideas from historical authors and artists. People who represented the brand ideals that they were trying to carry out. One author that stood out to them was Jack Kerouac, the novelist and poet who was a pioneer of the beat generation. Coincidentally, the New York Public Library was holding an exhibit one afternoon with some of Kerouac’s private diaries and journals. Seeking inspiration, Gilboa made a visit to the exhibit and stumbled upon some of Kerouac’s unpublished works, finding some interesting character names. Two jumped off the page: Warby Pepper and Zagg Parker. “So I took those back and the four of us were discussing,” Gilboa says. “We all loved those names and were debating, do we pick one of those, and we decided to combine the two and make it our own. And the URL happened to be available for nine bucks.” After six months of debating and with over 2,000 names rejected, Warby Parker came to life. Getting Noticed The challenge for any new brand is figuring out how to gain exposure. With a small marketing budget, the co-founders had to be strategic about finding a cost-effective way to maximize their exposure in such a competitive industry. Realizing glasses are an accessory and that the fashion industry was an insider’s game, the team hired a fashion publicist to help set up meetings with editors and writers at major publications. In February of 2010, WarbyParker.com officially went live. Within days of launching the website, they were featured in GQ, where they were dubbed “the Netflix of eyewear.” Soon after, another profile appeared in Vogue. From there, things went viral. “We ended up hitting our first year’s sales targets in three weeks,” Blumenthal says. “Sold out of our top 15 styles in four weeks and it was just complete mayhem.” Soon, they found themselves sold out of all their inventory with a waitlist of over 20,000 new customers. Warby Parker was an overnight success, a year and a half in the making. Onward & Upward Today, Warby Parker is valued at over $1 billion and has cemented its place among the top glasses retailers in the world. Even after they made it to the big time, however, the team kept innovating. In 2013, Gilboa and Blumenthal began to expand their brand with more storefronts, having now opened close to 100 stores in the US and Canada. And within some of those stores, they’ve begun to employ their own optometrists where states allow it. On the technology side, they’ve found new ways to cater to the customer. Within the Warby Parker app, any customer with an iPhone X can now virtually try on any one of their frames. In addition, they’ve made a move into telemedicine by allowing eligible customers to take eye exams from their phones, allowing a licensed doctor to write them a prescription remotely. But no matter how large the company becomes, the team’s underlying values remain the same: they do whatever it takes to make customers happy. 3 Tips for Standing Out From the Crowd When Neil Blumenthal, Dave Gilboa, Andrew Hunt, and Jeff Raider founded Warby Parker in 2010, they knew it wouldn’t be easy. But with the right planning, execution, and maybe some good luck, they felt they could make the world a little better, one pair of glasses at a time. The founding team knew that in order to get any attention in the noisy fashion industry, they had to be different and they had to stand out. Here are Blumenthal and Gilboa’s tips for helping your new startup gain exposure. Be Novel From the beginning, the founders knew that it would be hard to get any immediate attention in the fashion industry without the help of insiders. They knew their service and product would be different from any other retailer before them, but if no one knew who they were, it wouldn’t matter. So the team hired a fashion publicist to get them meetings with top fashion publications. By being able to tell their story directly to their target audience, and through a medium that their audience trusted, it was a giant step in the right direction. And since Warby Parker was so different from its competitors, once it got on the insider crowd’s radar, it wasn’t hard for them to draw media attention. “There was a bunch of things that we were doing that were novel,” Blumenthal says. “Selling glasses online, in 2010, was pretty novel. Having this home try-on program was really novel. Providing a pair of glasses for every pair we sell, was really novel. Charging $95 instead of $500 was really novel. So they really wanted to write about us.” In today’s startup world, it’s never been more crowded and harder to stand out. Be different with your concept and separate yourself from the fray. Don’t Get Distracted Although WarbyParker.com went live in February of 2010, the four co-founders spent over a year and a half focusing on their company’s mission, product, and business model. And after they found success, staying focused became an even more important priority. “We got some advice early on that if you’re walking down a path towards a giant pot of gold, you shouldn’t stop to get distracted by any shiny little coin that you see along the way,” Gilboa says. It would have been easy for Warby Parker to launch dozens of different products or to expand into new markets for monetary gain. However, that would’ve brought about great distractions that could have pulled them from their main goal, which is to solve their customers’ problems by offering them quality products and experiences. “We’ve just seen so many businesses that have failed due to lack of focus,” Gilboa says. “But it’s rare that you’ll see a business that fails for being too focused.” Remember the problems your business is trying to solve and stay focused on it. By always learning and iterating, you’re working towards providing the best service possible for your customers. Above All Else, Make the Customer Happy From the very beginning, the Warby Parker team knew they had to keep their customers happy. They understood that they had to not only provide a great product, but also provide superb customer service. In the beginning, all four co-founders were directly in touch with their customers. They each replied to customer emails and even set up an 800 number that would be sent to their personal cell phones until someone picked up. They were willing to do anything to make sure the customer was always satisfied. “Do whatever it takes to make customers happy and make them feel good,” Blumenthal says. “Smile, personal notes, whatever it takes.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Nick Allen Key Takeaways How losing a pair of $700 glasses led Blumenthal and Gilboa, along with fellow MBA students Andrew Hunt and Jeff Raider, to identify a major business problem How Blumenthal’s experience of running a nonprofit informed the early stages of Warby Parker A look into the 1.5 year process of bringing the co-founders’ business idea to life Why the team decided to merge eyewear and ecommerce The process of familiarizing themselves with the world of online shopping and websites How the name Warby Parker came to be, and why it took brainstorming over 2,000 names to get there The team’s cost-effective approach to marketing and launching the website How powerful press placement led to a sold-out inventory and a waitlist of over 20,000 new customers within weeks What’s in store (literally) for the future of Warby Parker The single piece of advice Gilboa and Blumenthal received that helped them be successful, and how other entrepreneurs can apply it to their own business
Tue, 03 Sep 2019 - 716 - 265: Battle-Tested Lessons on Scaling a Fast-Growing Global Company, With Printful CEO Davis Siksnans
Success On Demand How Printful co-founder Davis Siksnans rose to the top by helping entrepreneurs custom print and ship products with greater speed and ease. Davis Siksnans’ motto as an entrepreneur has always been, “If you can’t find it, build it.” It’s led him to some fascinating and quirky pursuits, from building a business that sells customized friendship bracelets to launching an ecommerce store that creates motivational posters for startups. Having spent much of his career working at a startup incubator, coming up with ideas and helping to bring them into reality, much of Siksnans’ expertise has involved smoothing out and speeding up that business-building experience. He’s especially excelled at improving the fulfillment process, allowing businesses to whip up clever ecommerce product ideas and then ship them out to eager customers in a heartbeat. While not all of his ventures took off, they were critical stepping stones to Siksnans building his most successful business yet—Printful. This leading drop-shipping, fulfillment, and printing business has mastered the process of creating on-demand ecommerce products. As a result, Printful has grown exponentially since its launch six years ago and now has a 500-person team across the U.S., Mexico, and Europe. Survival of the Fittest Long before his days as Printful’s CEO and co-founder, Siksnans always knew he would end up doing something in tech. Fascinated by technology from a young age, he taught himself to code, saved up his allowance to purchase his first computer, and built custom websites for his friends and neighbors. In the process, he realized he had a knack for turning ideas into businesses. So it came as no surprise when Siksnans secured his first job as an IT administrator with Draugiem Group, a startup incubator and one of the most exciting technology companies to work for in his home country of Latvia. Over the course of 15 years, Draugiem Group funded over 100 business ideas. Today, only 12 of these businesses remain, which is the nature of entrepreneurship, Siksnans says. What makes Draugiem’s model unique is that it doesn’t source ideas from outsiders—only from its own founders and employees. This means that everyone at the company has the opportunity to come up with the next big idea. “At Draugiem, if you do good work and gather trust, you’re given more opportunities to step up in your career,” Siksnans says. “I was given the chance to work on business ideas based on the fact that the founders thought I was doing a good job.” Timing was also on Siksnans’ side, as Draugiem Group was just starting to focus on the US market for the first time. He had previously completed an exchange program in the United States for one year and was familiar with the market, so Siksnans officially began his career as an entrepreneur. Take Your Vitamins After experimenting with a variety of ideas under the banner of Draugiem Group, Siksnans hit gold with Startup Vitamins, a company that sells, no not vitamins, but motivational posters. Siksnans and his team initially came up with the concept when they moved into a new office space that had ample wall space and wanted to put up some posters. But they couldn’t find any designs they liked. That’s when his motto of, “If we can’t find it, let’s build it” came into play, and Siksnans decided to launch a Shopify store to meet this need. Initially, the Shopify store sold posters with motivational sayings such as “Life is short. Don’t be lazy.” He and his team started off with one printer in the Los Angeles home of one of the founders, which made it convenient to produce posters on-demand and was also low-cost. After seeing promising growth, Siksnans decided to expand by taking on the biggest category in ecommerce—apparel. He liked selling posters because they could be easily printed on demand and didn’t require inventory. He wanted to replicate that model with apparel, so Startup Vitamins started working with a fulfillment partner that could produce on-demand products. This turned out to be a horrible experience. The fulfillment partner’s website was clunky; it took one-to-two weeks to fulfill orders; the quality of products was subpar; and there was no public API—no way to automate the orders that were coming into Startup Vitamins. That got Siksnans thinking. Testing Theories Siksnans realized that there was a significant gap when it came to services that could produce on-demand and high-quality products at a reasonable speed. He also recognized the lack of a powerful API that could integrate with ecommerce platforms like Etsy, Shopify, and Storenvy. He decided to test this theory, and that’s how the idea for Printful came to life. The key difference was that, with such an API, his company could allow clients to automatically receive and process orders for their online business instead of serving as the middleman. “When we launched Printful in 2013, we didn’t even own the domain printful.com because we didn’t know if this idea was going to work or not," Siksnans says. "Maybe it would fail and we would have to refocus. We used Startup Vitamins’ mailing list as our first marketing channel to push out Printful’s services because our customers overlapped—startups that were likely to be open to using print-on-demand in their respective niches." Printful found product-market fit immediately. Its combination of drop shipping (when an ecommerce store purchases inventory from a third party and has it shipped directly to the consumer) with a custom print API and other services made it easy for anybody to sell posters, t-shirts, canvases, and other merchandise, seamlessly. As a result, Printful made around $800 in revenue in its first month, then $1,600 the next, and the business only kept growing from there. In under six months, Printful had become larger than Startup Vitamins. Lessons on Scaling Since its launch, Printful has seen impressive growth. The company now has a team of more than 500, locations in four geographies, 6.83 million orders fulfilled to date, and $540 million in products sold by its customers. Of course, with growth comes growing pains, which Siksnans says has been one of the toughest aspects of his job. He has turned to certain resources to help him navigate the challenges around scaling. “I recommend the book Scaling Up by Verne Harnish," Siksnans says. "Whenever I see a person in management struggling with growing pains, I give them this book and discuss it with them. It contains so many great practices and tactics, and it shows that this is a normal process that many companies have dealt with." Siksnans also emphasizes the importance of collaborating across cultures. At Printful, they make a point of educating team members about cultural differences. The company also invests in resources to make sure its employees have the opportunity to travel between Latvia and the United States to conduct knowledge and culture transfers. While it’s important to acknowledge the differences among Printful’s various locations, Siksnans believes it’s critical to maintain a thread of consistency throughout every employee’s experience. He once sat in on an onboarding process for an employee in Riga, Latvia and noticed it lacked many of the helpful components found in the US process, so he connected both HR departments to make sure they were added. That’s why Siksnans stays involved in all of Printful’s HR processes—from running new hire trainings for employees once a month to being involved in the recruiting process. Looking Forward Siksnans has several thoughtful predictions for the future of the print-on-demand and drop-shipping industry. For starters, he envisions decreased reliance on advertising. As Facebook ads become more expensive over time, Siksnans believes it will become increasingly important to build microbrands. This means becoming less reliant on advertisements and turning more to influencers, who have powerful audiences on social media and promote products organically to their user bases. Siksnans also anticipates potential policy changes around shipping. Consumers are already demanding faster shipping speeds as companies like Amazon set a new standard. He’s keeping an eye on what happens with the Universal Postal Union, the UN agency that coordinates postal policies among different nations. They’re experiencing many issues, for example, the fact that it’s cheaper to ship a mug from China to New York than it is to ship a mug within New York. As a result, some countries are already taking steps to limit the influx of cheap drop-shipped goods coming from other countries. Finally, Siksnans is focused on understanding ecommerce algorithms. A growing base of users is leaning into newer marketplaces such as Etsy, which have less advanced ranking algorithms to figure out than sources like Amazon or Facebook advertisements. As a result, Siksnans is noticing a lot of people finding success by learning the ins and outs of various internet marketplaces. Regardless of which direction the market goes, Siksnans believes Printful is well positioned to continue growing. All of this success came as a result of him identifying a need and deciding to go for it—a mindset he believes all founders should emulate. “I have a lot of people asking me when is the right time to start,” Siksnans says. “There’s no right time when someone is ready to start anything new. You will never feel ready, so just start now.” Davis Siksnans’ 4 Tips on Scaling Company Culture Hire people who love to learn. Siksnans picked up this concept from the book How to Castrate a Bull by Dave Hitz. The basic premise is that your business won’t scale if your team won’t scale with it. That’s why it’s critical to look for employees who are eager to learn because they’ll be more willing to grow with the company and embrace the changes that come with it. Stay aligned with your values. Initiative, integrity, and experimentation. These are Printful’s company values, and Siksnans ensures they’re embedded into the DNA of the organization. He does this by weaving the values into the onboarding process, making sure they’re conveyed across every location, and working with managers to help them embody the company culture. Prioritize culture fit. While it may be tempting to hire the most qualified candidate, Siksnans recommends putting culture fit first. “Don’t hire people who don’t embody your culture. I’ve had interviews with managers who met the professional criteria but weren’t a culture fit. It almost hurts to pass on those candidates, but I believe it’s more important to find someone who fits on a cultural level than on a professional level,” Siksnans says. Encourage cross-team collaboration. It’s easy for holes to emerge in cross-team communication as a company scales. That’s why Printful has a process of having new hires meet with people outside of their own department to ask questions about their roles. For instance, a new marketer might meet with the finance department to learn more about their day-to-day functions. This is a helpful practice to break down barriers and improve intra-team collaboration. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Sophia Lee Key Takeaways How his first job as an IT administrator at startup incubator Draugiem Group nurtured his entrepreneurial spirit How the motto of “if you can’t find, build it” led to Siksnans’ first successful business idea, Startup Vitamins Why ecommerce and the on-demand model were appealing to Siksnans How a bad experience with a fulfillment partner led to the launch of Printful The savvy marketing tactics used to test product-market fit for Printful The six-year journey to becoming a 500+ person team across four global locations Which books Siksnans recommend for startups experience growing pains The top lessons learned on scaling company culture Why it’s important to collaborate across multiple cultures and offices Siksnans’ thoughts on the future of the print-on-demand and drop shipping industry
Tue, 27 Aug 2019 - 715 - 264: How Revolve’s Founders Went from Finance and Engineering to Running a Billion-Dollar Fashion Brand
Where Data Meets Denim How Revolve founders Michael Mente and Mike Karanikolas, a duo with backgrounds in finance and engineering, used data to take the fashion world by storm. You would think that finance, computer engineering, and fashion have nothing in common. But Michael Mente and Mike Karanikolas, the founders of the wildly popular online clothing company Revolve, would beg to differ. It’s true that when they first met each other at a software startup, they never thought fashion was in their cards. After all, Mente was a finance guy and Karanikolas was a computer engineer. They weren’t exactly cozying up to the catwalk. And yet, a series of unfortunate events led Mente and Karanikolas to the retail business, which ended up yielding quite the fortunate outcome—together, they built a billion-dollar business that serves as inspiration for any entrepreneur looking to get into the online apparel game. Using their respective strengths in analytics and number crunching, they developed a hunch that there was a gap in the market when it came to places young, millennial women could buy fashion brands online. Their hunch proved to be correct. From there, it was Revolve's famously prescient marketing strategy — in particular, the company's influencer marketing — that set them apart from other online clothing brands coming onto the market. "We had first-mover advantage and recognized power of social early on. We’re been working with influencers before they were even called influencers — before instagram even existed," Karanikolas says. With their near-perfect product-market fit and the love of influencers like Chrissy Teigen, Chanel Iman, and Jessica Alba, the California-based company has grown from being a small online store to an iconic billion-dollar business. Challenging the Mainstream Mente and Karanikolas were both working at the software startup NextStrat when the dotcom bubble burst, kicking off a recession that eventually led to the company’s collapse. That’s when the duo started to brainstorm ideas for a new venture. They knew they made a great team and had a feeling they could achieve big things together, it was simply a matter of finding the right opportunity. Given their math and engineering backgrounds, they approached the research process of finding that new endeavor in a very methodical way. Ecommerce was on the rise, and after digging into keyword search data, they noticed there was growing interest around online apparel. There were other attractive aspects of the apparel business too, such as the fact that it promised high gross margins and was a relatively untouched market in the late 90s and early 2000s. “There were a lot of questions about whether apparel made sense online at that time,” Karanikolas says. “But any time there’s a new space, that means there’s room for innovation. We recognized that online represented a wealth of opportunities, and it was just a matter of figuring how this new medium worked for apparel and how to make it appealing for consumers.” It didn’t take them long. From Denim to Dominance Mente and Karanikolas launched Revolve in 2003 with $50,000 of their own savings. That meant carefully watching cash flow was extremely important, which forced the duo to be highly disciplined about how they made decisions. Even early on, they leaned heavily on data to inform what products to sell. The core of their business model was to sell clothing from other brands, start with existing numbers, and then test and iterate as they identified what worked and what didn’t. For instance, they initially assumed denim would be one of the hardest types of clothing to sell online, since fit is so important and there are lots of size variations. Through data analysis, however, they discovered that people actually did shop for jeans online and even returned them less frequently than other clothing categories. So for the first year or two of running Revolve, denim made up a majority of their business, which led to their first wave of success with the company. They also weren’t afraid to go against the grain in how they ran an online store. When they realized the inherent risk that came with buying online due to fit issues, they instituted a policy of free shipping and returns. Mente and Karanikolas also quickly recognized the importance of having big, high-quality photos of their apparel—so they kicked standard web guidelines to the curb and covered their site with beautiful images, even if it meant it took a little longer to load. “There were all sorts of different ways we approached retail and online fashion that ended up working out really well for us,” Mente says. “Eventually, we came to understand the creative and aesthetic side of things more and become expert in areas we weren’t before. That piece took us many years to develop, and it wasn’t easy because it didn’t leverage our initial core strengths. But building that expertise on top of our existing strengths helped us become really powerful.” Struggling to Survive Mente and Karanikolas’ journey wasn’t without difficult times. They were still self funded when the Great Recession hit in 2008. Demand plummeted, and they saw that competitors were responding with extreme discounts, which made it challenging to make money. Despite the fact that they were fighting for their lives, Mente and Karanikolas agree that this period actually led to incredible personal and professional growth. It also showed them they had the right company culture and people to get them through these challenging times. The duo recalls one particular memory with fondness. Since Revolve also had to offer discounts to make sales during the recession, they had to ship a massive volume of product to remain profitable. During this time, every single employee voluntarily came out to the warehouse on weekends to help get all the products out on time. That’s when Karanikolas and Mente knew they would survive and come out on the other side as a stronger company. Standing Out Revolve is now a major player in an incredibly competitive online apparel market. But Mente and Karanikolas aren’t worried because they’ve come to deeply understand one of the most important lessons in marketing: You’ve got to stand out from the noise. The way they do this is by leaning into the authenticity of their brand. Everything, from the events they host to the people they work with, is saturated with a genuine desire to grow relationships with consumers. It has never been about trying to outspend their competitors. This type of commitment to their consumers is also what led the founders to start Revolve’s own line of clothing back in 2010. Through data and conversations with their audience, they knew that there were products they either didn’t have a big enough selection of, or weren’t stocking fast enough. They realized they had the ability to provide a better product and have since launched an array of new clothing lines to meet the different needs of their customers. Next Level of Growth Karanikolas and Mente are optimistic about the future of Revolve. “There are more opportunities today than ever, and we’re the best positioned we’ve ever been in the history of our company. We’re trying to build one of the biggest fashion and apparel companies out there,” Karanikolas says. The duo plan to continue focusing on their core business of building a better experience for their target consumers, youthful women in 20s-30s looking for premium fashion. They’re passionate about getting better at everything they do, from improving their data to creating better products. Thoughts of further international expansion are top of mind for the founders as well, given that more than 40% of their social media following is international. When it comes to the secret of success, the duo say there isn’t one—it’s simply about putting in the hard work, grit, and perseverance. “There’s so much chance involved in the short term, but if you keep making the right steps, over the long run you’ll go in the direction you want, even though there are periods of time where it feels like things aren’t working for you,” Karanikolas says. “It’s a lot of hard work, but it’s going to be more rewarding than anything you’ve ever done.” Mente agrees and leaves aspiring entrepreneurs with an additional piece of wisdom. “Hard work and dedication are 100% important, but another aspect is to take care of yourself and your life,” he says. “Your physical, mental, friendships, and relationships are all important as well. When you’re living well, you’re thinking clearly, healthier, and more productive over the long run. You need to recharge and have some balance in your life. It’s something I’m still trying to learn.” 3 Tips to Build a Powerful Consumer Brand, From Michael Mente & Mike Karanikolas Define core principles. It’s important to clearly identify which principles drive your brand—make sure those values are authentic to your organization and aren’t just an imitation of other organizations. From there, all decisions should map back to these principles to ensure the brand is consistent. Understand the landscape. You have to know who you’re competing against so you can figure out how to spread your message more broadly in the market. This also means figuring out who your primary consumers are and where they’re spending their time, as well as discovering your own message that’s positioned well and unique enough to mean something, but not so niche that your target audience is too small. Be consistent, but don’t be afraid to be flexible. “Know what you stand for and make sure you’re consistent in communicating that message. What you stand for has to make sense for the consumer segment you’re targeting in comparison to the competitive space,” Karanikolas says. However, he also says that it’s okay to refine your brand message. “We actually have consistently used data to refine our brand message. In other words, what are consumers responding to? There are things we knew from the start but also evolved as we learned from data.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Sophia Lee Key Takeaways How Mente and Karanikolas’ paths crossed while working at a software startup How the dotcom bubble led the duo to start brainstorming new ventures How their backgrounds in finance and engineering helped them decide on an online apparel business The launch of Revolve, with $14,000 out of pocket Why every business decision was driven by data The duo’s breakthrough with denim How Revolve survived (and thrived) through the Great Recession in 2008 Mente and Karanikolas’ recommendations on standing out in a crowded market How Revolve changed the game of influencer marketing The importance of knowing your consumers, not outspending your competitors The future of Revolve’s global presence
Mon, 19 Aug 2019 - 714 - 261: How Raegan Moya-Jones Built a $100M Baby Blanket Business Using Common Sense and Hard Work
Against the Odds How Raegan Moya-Jones built a $100 million business from the ground up—no fancy MBA required. Raegan Moya-Jones was an Aussie in New York City, pregnant with her first daughter, and she couldn’t find the right baby blanket. Every Australian mother from time immemorial had swaddled her baby in a cotton muslin blanket, and Moya-Jones wanted to do the same. But no matter where she looked, she couldn’t find one. Rather than simply becoming frustrated by the futile search, she had an idea. “I figured that all Aussie parents couldn’t have it wrong, and if I introduced it to American parents, they’d feel the same way,” she says. “Luckily for me, my hunch was right!” Moya-Jones went on to found the successful baby product company aden + anais (partly named for her first daughter), publish a book about her journey, and launch a second business all while raising four daughters. Even when success turned sour, as it so often can in the entrepreneurial world, she didn’t let that stop her. Moya-Jones has weathered the heartbreaking end of a partnership and gut-wrenching business betrayals, becoming stronger, wiser, and more successful for it. A Rocky Start In 1997, Moya-Jones moved from Australia to New York, after her Chilean boyfriend landed a new job. She was partway through an MBA, but put it on hold to be with the man who is now her husband. Without a visa, she struggled to find work, but eventually managed to land a position at the Australian consulate. Through connections she built there, she moved into a job at a conference company and then into a position as a sales executive with The Economist, where she worked for over a decade. It was when she learned she was expecting her first child in 2003 that she began that fateful search for the perfect swaddle. For three years, she toyed with the idea of starting that business. As a first-time entrepreneur, she had to learn everything from product design to manufacturing, but in 2006, she set out to launch her brand. While she may not have had a completed MBA under her belt, she had years of experience in sales, a degree of common sense she felt she could truly rely on and, above all else, the drive to work as hard as it took. “I really am a huge believer that common sense and work ethic are the two keys to building a successful business. They’re the two most important things,” she says. “At the end of the day, it’s how much work you’re prepared to put in to be successful. I could never, ever have estimated how much work had to go into building a business from scratch.” For the next three years, Moya-Jones would work her day job, then return home to spend quality time with her family (which now included three daughters). But once the bedtime rituals were complete, she burned the midnight oil building her business, from 8:30 p.m. until 3:30 a.m. “It was pretty brutal,” she says. But the odd hours she kept weren't the only tough part from the early stages of aden + anais. Moya-Jones launched her business with her friend Claudia Schwartz, and for the first few years, they worked together flawlessly. They initially invested $15,000 each into the company to build a basic Yahoo website, design a logo, and make their first manufacturing order. They anticipated the investment would last them six to 12 months. The money ran out after eight weeks. They each invested another $30,000, but at this point, Moya-Jones had run through her savings. Timing is everything, and it wasn’t on their side. “We were starting out during the worst recession since the Great Depression, so it wasn’t really good timing in terms of having access to capital and people wanting to loan us money,” she says. So Claudia made an additional investment that Moya-Jones was unable to match, and once they asked Claudia’s father-in-law to grant them a $200,000 loan, Moya-Jones says she noticed a bubble of resentment growing. “I think the disparity in what I could contribute financially to what Claudia could was one of the biggest catalysts for the partnership dissolving,” she says. Moya-Jones says she found three other women to buy out Claudia’s 49% share in the business, and in 2008, the partnership ended. Off Like a Rocket Although Moya-Jones was struggling through the personal blow of saying goodbye to a friend, aden + anais was steadily growing into a healthy, flourishing business. “It was a rocketship in the early stages, for sure,” she says. The muslin blankets were an instant hit, and thanks to 20 years of sales experience, she was well equipped to get the products to those who wanted them most. Moya-Jones loaded up taxis with samples of her product and went door to door sharing it with every store that might be interested. “That’s where definitely my sales experience came in handy because I was extremely comfortable with that part of the business,” she says. In the early 2000s, brick-and-mortar stores still reigned supreme, so she wasn't yet focused on the ecommerce side of the business. She also chose to build relationships with existing retailers, rather than launching into fraught competition with them. “We didn’t want to piss off the retailers by competing against them with our own website and sales and everything,” she says. “Then, Amazon entered the picture, and of course, all bets were off at that point.” Meanwhile, Moya-Jones was still balancing her company with her day job. She didn’t want to cause financial strain on her family, which would eventually grow to four daughters, and she didn’t want to put added pressure on her business to perform. “It was my conscious decision to choose sleep deprivation over any kind of financial pressure on my family and on the business in the early stages,” she says. But the years of toil took their toll. “There were definitely times when my hair was falling out,” she admits. She still believed in her business, though, so she powered through the strain, set a goal for when she would leave her day job, and waited for the right moment to arrive. “Statistically, only 2% of all women-owned businesses ever break a million dollars in revenue,” she says. “I knew it was a pretty stretch goal, and so I sort of said, ‘Well, if I can get to a million in revenue, then I’m prepared to dive fully into aden + anais and quit my day job and give it a really good go,’ which is what I did.” In 2009, Moya-Jones went full time with the company. But even though her business was a success, she still needed additional investments to keep the business alive. She borrowed money from just about anyone who would lend it to her for nearly a year and a half after the dissolution of her partnership. “Initially, it was friends and family, and then it was friends of friends, and then once we got to the point where it was just obvious that we were never going to be able to scale doing it that way, that’s when I went out and looked for investment money,” she says. Although the business had traction, Moya-Jones says that she struggled to find investors. But in 2010, her first investor came aboard. That investment led to aden + anais’ first year of $10 million in revenue. A Dark Day and a New Dawn With the acquisition of another business in 2016, aden + anais pushed past the $100 million mark. But even as Moya-Jones’ success continued to blossom, disaster loomed on the horizon. In 2013, the first investors in the business departed, and their parting piece of advice to Moya-Jones was to bring in another private equity firm to share the load. They could never have known what this would mean for the company’s future. The new firm bought the majority share of aden + anais, which would lead to an internal struggle for the future of the business. “That’s when the whole thing started to go downhill for me,” she says. “We did not agree on the way forward. I don’t think they really understood me. This is the whole Stanford, Harvard, Yale backgrounds coming up against the crazy, opinionated Australian girl who has no education on a piece of paper to show. We just didn’t see eye-to-eye on very much at all. It was sort of the beginning of the end to tell you the truth.” Outspoken about her disagreements as she saw her beloved company moving in a direction she didn’t support, Moya-Jones was informed in 2016 that she was being moved from the position of CEO. “My story is actually way more common than I think people realize,” she says. After a string of failed replacements, a new CEO finally stuck, and in 2018, Moya-Jones was fired from her own company. “It was a pretty awful time,” she says. But the new firm had the controlling interest in the company, so they were well within their rights to show her the door. And it wasn’t as though Moya-Jones had planned to run the company forever. The luster of serving as CEO of a massive business had already started to fade for her, and she missed the rush of innovation. “Once you get up to the $60, $70, $80 million dollar mark, you just become the person that all you’re dealing with is shit every day,” she says. “The fun stuff everybody else is handling. The only time you’re really needed is when it’s too hard for somebody else or they don’t want to make the decision and deal with it.” But she still wishes she would never have sold the majority share, at least until she was prepared to exit on her own terms instead of being forced out as CEO. “I’m grateful in that I ended up making a very nice amount of money from aden + anais, but it’s definitely bittersweet. If I could do it all over again, I would do it differently.” To this day, she is still the single largest individual shareowner in aden + anais. But her story wasn’t over. In fact, a publisher soon approached Moya-Jones and asked her to share, well, what it takes. While she was initially hesitant because, as she says, until the business reached about $50 million in revenue, she was operating largely on common sense, she decided to move forward with the book when the publisher said they didn’t want a conventional outline of what it took to become successful. They just wanted her story. “To say I’m the antithesis of the MBA-educated business mind is an understatement,” she says. And in her book, What It Takes: How I Built a $100 Million Business Against the Odds, she shares just how she did it and hopes she inspires others to do the same. She believes that anyone could follow in her footsteps without any kind of training or prior experience, as long as they are willing to put in the work. And being asked to leave aden + anais didn’t keep the tenacious Moya-Jones down for long. Today, she is elbow-deep in a brand new business that has taken her “from babies to booze.” In June 2018, she co-founded the moonshine company Saint Luna Spirits. “We wanted to create a high-end moonshine that was served in five-star restaurants and the best cocktail bars out there,” she says. The business has already won gold and silver medals at spirit competitions, and after only a few weeks on the market, the label already appears in renowned establishments across New York, such as Jean-Georges and Employees Only. “It’s super fun to be back in the trenches building something and creating,” Moya-Jones says. And no matter what she does or where she goes next, by weathering the storms of her first business, Moya-Jones has proven unequivocally that she has what it takes. Raegan Moya-Jones Tips for Entrepreneurs Through successes and trials, Raegan Moya-Jones has build up an extensive bank of knowledge when it comes to launching and shepherding businesses, and these are some of the tips she shares with every entrepreneur she meets. Use Common Sense “Not all people have common sense, but what I’m trying to say is you don’t need to be an expert in really anything, I believe, to start and build a successful business.” Think Twice Before Selling “Never, ever sell the controlling interest of your company if you’re still passionately involved in it and dedicated to it.” Unless you are looking to exit a company for good, Moya-Jones recommends that founders think twice before relinquishing control, even for a nice payout. Stay True to Yourself “Everyone’s going to have an opinion. There will always be the people who want to come in once you’re successful to change the way you do things.” Moya-Jones reminds founders to trust their instincts and remain true to the things that help them launch and grow their business, even if others disagree. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways How Moya-Jones’ first child inspired the idea for aden + anais A peek into her journey from Australia to the US, and the struggle to find a job An entrepreneur’s juggling act with a full-time job, family, and building a business Why Moya-Jones was committed to staying at her full-time job until she broke $1 million in revenue How finances eventually turned a partnership sour Moya-Jones’ philosophy of running a business on common sense and work ethic How she got aden + anais off the ground by using old-school sales tactics The journey to $100 million in revenue The one business decision Moya-Jones regrets to this day, and how it led to her being forced out of her company What motivated Moya-Jones to write What It Takes: How I Built a $100 Million Business Against the Odds How Moya-Jones made the transition from babies to booze and is now finding success with moonshine company St. Luna Spirits
Mon, 29 Jul 2019 - 713 - 260: How Nimble’s Jon Ferrara Used Partnerships and Relationships to Strike Gold in CRM
Back in the Game How Nimble’s Jon Ferrara returned to the startup world to revolutionize customer relationships for a second time, all while maintaining a life he loves. Jon Ferrara was frustrated. As a young computer software salesman and son of an entrepreneur, he firmly believed that one of the most vital aspects of business was relationship building. But in the 1980s, managing those relationships was a giant pain. He was stuck fumbling with paper leads, appointment calendars, spreadsheet forecasts, and no great way to keep or share records. He wanted to fix the problem, and thought he might just be able to. Of course, he could have stayed content where he was and raked in a sweet $200,000 a year, while waiting for someone else to solve the problem. But surrounded by aging coworkers who regularly lamented the shots they didn’t take, Ferrara didn’t want to be just another guy with a good idea who didn’t chase his dream. So at 28, he quit his job to see what he could create. Three decades and two successful companies later, Ferrara changed the Customer Relationship Management (CRM) game—and then changed it again! Through his work in founding GoldMine and Nimble, Ferrara strives to boost the R in CRM by improving the way salespeople relate to each other and to their customers, first by integrating email, contacts, and calendar, and then by drawing in social media. “As I went into my career and struggled to sell in the technology arena, I found it hard to scale connections and relationships and pipeline and marketing, and I looked for a tool to do it,” he says. “I couldn’t find it, so I built it. And it turned into a gold mine for me.” The path Ferrara has traveled has not been a straight line. But thanks to a willingness to pivot, seek partnerships with high-profile businesses, and put relationships before profit, he has built businesses, and a life, he is very proud of. Striking Gold With no Windows, Outlook, or Salesforce, the life of a salesperson in the 1980s was an endless wilderness of loose scraps of paper. The salesperson was handed a lead that they would cold call, making notes on the piece of paper and scheduling further meetings in a separate-but-also-paper appointment calendar. If the paper was lost, so were the notes. Forget about other team members sharing information to build well-rounded relationships with a client. And the bigger the company got, so grew the problem. This was the root of Ferrara’s frustration. “What I wanted was a tool that integrated contacts and email and calendar with sales and marketing automation, not just for me, but for the whole team,” he says. No matter how hard he looked, he could only find pieces of the tool he sought. A marketing tool here. A calendar there. A pipeline tool way over there. But nothing that brought it all together. So, he set out to create it himself. Ferrara sketched out the idea for GoldMine, and Elan Susser, a friend from college, made it into a reality. Using the money in their savings accounts, Ferrara and Susser created a CRM that integrated every tool a sales team would need and designed it to be accessible across a network. They had created something revolutionary, and that filled a prevalent need, but they had no money to advertise and no real connections to reach out to. “There we were, two kids in an apartment with $5,000 in the bank with basically Outlook and Salesforce before either existed,” he says. “So, how do you sell that?” They say our struggles become our greatest strengths. And it’s in his past sales struggles that Ferrara found the key to GoldMine’s success. During his two-year stint as a software salesman with Banyan, Ferrara was often beaten to the punch by the local resellers of a competing company, Novell. “The Novell resellers used to kick my butt as the enterprise Banyan sales rep because I had to sell at the top level, the enterprise, all the way down to everybody in the company, and that took months if not years,” he says. “Whereas the Novell guys sold into work groups.” Rather than focusing on the top dogs at well established companies, Ferrara’s competitors got to know the small groups in coffee shops that would one day form successful startups and eventually large corporations. With their bottom-up approach, Novell representatives were becoming the trusted go-to software salespeople of small workgroups, allowing them to spread more quickly and eventually become the corporate standard in a fraction of the time it took for top-level executives to make decisions. So when Ferrara wanted to spread the word about GoldMine, he sought out his former competition. He called top Novell sellers and showed them what a difference GoldMine would make in their own businesses. As they fell in love with the software, the trusted, local reps recommended it to their customers. Ferrara says that this proto-influencer marketing tactic was the secret sauce that allowed them to reach their first $100,000 in sales. But as the business grew, so did the needs of the GoldMine customers. While Ferrara’s company initially targeted solopreneurs and small teams, they were rapidly being asked to cater to the needs of organizations with as many as 5,500 people. They needed a more scalable model. So, when Microsoft approached Ferrara with a deal, he knew it would be mutually beneficial. “They said, ‘Well, we just built NT Server, SQL Server and Exchange Server, and we want an independent software vendor to help us drive adoption because nobody’s going to buy SQL Server without a business application that calls for it and makes it sticky,’” he says. As Microsoft created new servers, the company needed to find a way to sell them to business owners who were reluctant to leave the comfortable. By partnering with up and coming business applications that would run only using their newest servers, they drove sales of both products. Ferrara decided to create a new version of GoldMine that supported the needs of larger corporations by relying on the tools provided by the Microsoft servers. In turn, Microsoft pushed GoldMine to its customers. “We became corporate standard at 50 of the Fortune 500 companies, and that’s what propelled us to $100 million a year in revenue,” Ferrara says. But as he stood on the mountaintop of success and looked down at what he had built, he began to question whether he wanted to keep climbing or if it might be time to take another path. Stepping Back The life of an entrepreneur can be tough. Building a company, particularly a large one, requires high levels of dedication, brainpower, and time. “Ten years of scaling a company to $100 million in revenue took everything I had,” Ferrara says, “and it cost me time and moments with everyone around me.” He started searching for his exit. It was 2000, the stock market was soaring, and Ferrara suspected it wouldn’t last, so when he was offered $125 million in cash to sell GoldMine, he took the deal. Four months later, Ferrara says, the dotcom bubble burst, sending stocks plummeting. But even as he sighed with the relief of a bullet dodged and settled into the stay-at-home husband and father life, another much more insidious threat was already growing. One year after Ferrara sold GoldMine, doctors found a tumor in his brain. “Life is going to hand you blessings, and it’s also going to smack you, and you can’t control that,” he says. “The only thing you can control is how you react to it.” Ferrara chose to react in the way he knew best: through research and relationships. He visited a variety of doctors while also learning about Eastern medicine, and through a combination of these treatments, he says he healed his body while also taking a deeper look at his soul. “I came to a simple conclusion about my purpose in life,” he says. “I think we are on this planet to grow our souls by helping other people grow theirs. Rinse and repeat. That’s it.” Even though he had only planned to be away from the business world for a short period, his brush with mortality caused him to reevaluate where he invested his limited time. “They don’t write on your grave, ‘kickass entrepreneur,’” Ferrara says with a laugh. “They say, 'beloved father, friend, husband.' So I decided to dedicate time to being a present father, husband, and contributor to my community…and to be able to do that at 40 years old was priceless. It was precious.” So for nearly a decade, Ferrara was almost entirely absent from the world of technology. Then in 2009, as his 50th birthday approached, the rise of a new technological power caught his attention: social media. Still with an eye for relationship building, Ferrara recognized that social media was about to reshape the way people related to one another and also how consumers related to businesses. He also knew that the current CRM options weren’t built to integrate with social media. With contacts spread across CRM software, company software, and every kind of social media platform imaginable, salespeople were once again as overwhelmed trying to manage contacts as they were in the days of pen and paper. “So I said to myself, ‘Imagine if you could build a CRM that worked for you by building itself from the disparate data you already have in your business—the email, contacts, and calendars that you have in GSuite, Twitter, Facebook and LinkedIn,’ and I built it,” he says. In 2010, Ferrara built an exploratory team. In 2011, he launched a beta test. In 2013, the paywall went up, and so Ferrara returned to the entrepreneurial world with the creation of the social CRM, Nimble. Back in the Game It was like déjà vu. Once again, Ferrara felt he had a valuable piece of software, and once again, he had no easy avenue to market it. “I’d been out of technology for 10 years,” he says. “Most people in technology have only been in technology for 10 years, let alone out of it.” No one remembered who he was, or even what GoldMine had done. But while he may have lost name recognition and connections during his absence, there is one thing that had only continued to flourish in his time away: his ability to build relationships. So, Ferrara dove into social media, sharing and commenting on the posts of thought leaders in the entrepreneurial space. “Rather than me having to go out and write my own content, I shared content that resonated with me in and around the value that my product provided, which generated eyeballs to my brand,” he says. Over time, this led to moments of interaction with the influencers whose content he shared. But he avoided diving right into a pitch for Nimble. Instead, he would hop on a call with them and ask them questions based on research about their lives and businesses. “If you let somebody talk, you’ll learn what you need to learn to add value, and they’ll love you because people love to be heard,” he says. As the connections grew, he would offer them meaningful introductions or even business ideas. Only when he was asked would he share his current venture, Nimble. And as he shared, some of those he spoke with decided to give it a try. Then those happy customers shared their experiences with their followings. And while this approach to marketing took time, Ferrara believes you can’t put a price on authenticity. “Real, solid relationships are one to one,” he says. “They’re heart to heart. They’re relevant and authentic. And when you blast, people feel it.” His patient methodology led to over 100,000 Nimble subscribers and such high-profile investors as Mark Cuban and Google Ventures, all without a single cent spent on marketing. And, after partnering with Microsoft once again, Ferrara sees explosive growth in Nimble’s future. With the rise of cloud computing, he has his eye on which businesses are finding the most success in that arena. And Ferrara points out that, according to the numbers, it’s undoubtedly Microsoft. He says that while G Suite has about 7 million users, Office 365 has 175 million. “Essentially it’s really game over in the cloud productivity wars, and Microsoft dominates and will grow from here. “Most businesses that use Microsoft products rely on their local reseller to facilitate their adoption and implementation. Microsoft has hundreds of thousands of them around the world, and nobody has that.” With Nimble’s status as the simple CRM for Office 365, Ferrara says they’ve signed up 30 of the 50 top Microsoft distributors and over 1,000 Microsoft resellers in just the last six months. And it’s only onward and upward from there. But even though lightning has struck not once but twice in Ferrara’s journey as a tech entrepreneur, he feels that his greatest achievements are those he has made as a husband, father, and member of his community. “Life isn’t about money,” he says. “It’s really more about the moments that create the memories. All you leave are the moments you’ve been truly present with the universe around you—with other human beings—and the ripples that you leave behind.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways Why Ferrara believes in valuing relationships over everything else How Ferrara pioneered the world of CRM with his first company GoldMine Why you should avoid the “shoulda, coulda, woulda” mindset The 10-year journey to scaling GoldMine and selling it for $125 million in cash How a serious illness shifted Ferrara’s perspective and led to his current life’s mission The transition from 10 years out of the tech game to building leading social CRM platform Nimble How Ferrara rebuilt his personal brand and Nimble’s brand His best advice when it comes to building strategic, high-level partnerships Why Ferrara recommends focusing on moments, not money
Mon, 22 Jul 2019 - 712 - 259: Taking on Google, with Gabriel Weinberg, Founder of Privacy Browser DuckDuckGo
Taking on Google Gabriel Weinberg has made it his mission to protect internet privacy, and his scrappy Google competitor DuckDuckGo is leading the charge. Everything we do online is tracked. Searching, browsing, shopping, even navigating. Most of us have grown accustomed to this. Although we may acknowledge now and then that it makes us uncomfortable, we haven’t changed our habits. Maybe we’ve become too reliant on our preferred online services for basic day-to-day tasks. Or maybe we don’t even know how we’d change our ways in the first place. This is a problem that Gabriel Weinberg has been helping people solve since 2008, when he first created privacy-focused search engine DuckDuckGo. While the company has been charging ahead ever since, Weinberg’s mission is on everyone’s mind these days. Concerns about internet privacy and data protection are at an all time high, following recurring scandals around tech companies leaving their users vulnerable. While still far smaller than industry leader you-know-who, DuckDuckGo’s popularity is surging, thanks to its commitments to never collecting personal information or tracking your activity to sell to advertisers. The search engine offers other services like informing the user of what tracking is being blocked, and now has a mobile privacy browser and desktop plugins. Since incorporating in 2008, DuckDuckGo has grown to a global company of 63 employees. As internet privacy has taken the spotlight, Weinberg’s been busy, writing and advocating for federal “do not track” legislation, and speaking up in the New York Times opinion page and other platforms. He’s also got a new book out that explores the power of mental models he’s relied upon during his career. But Weinberg’s core mission remains: to make it a lot easier for you to use the internet without being creeped on. The Start of DuckDuckGo DuckDuckGo is a search engine, but it’s also an internet privacy company that’s out to help you protect yourself online. “We like to say the internet shouldn't feel so creepy, and protecting your information should be as easy as closing the blinds,” Weinberg says. DuckDuckGo offers a variety of tools to help consumers achieve this privacy—and feel confident about it. The company started as a search engine and has since expanded to offer a browser for iOS and Android, along with extensions for desktop browsers. The company is 10 years in the making, but it wasn’t Weinberg’s first internet startup. After graduating from MIT in 2003, he created educational software that supported student achievement by using the internet to connect parents and teachers. Unfortunately, the software was developed about 15 years too early, and it fell flat. Next, Weinberg started a pre-Facebook social network that helped people find old friends and classmates. That fell apart in 2006, and DuckDuckGo followed soon after in 2007. The company incorporated in 2008 and officially launched at the end of that year. So, how has DuckDuckGo competed with giants like Google for over 10 years and lived to tell the tale? It’s a modern day David and Goliath story, although in this case David is growing bigger and stronger every day. Weinberg attributes a lot of DuckDuckGo’s success to his team. As he often tells other entrepreneurs, “If you're going to succeed, you're going to need an amazing team around you. Work on crafting the values and mission to attract a team... to reach your ambition.” The Power of Mental Models Weinberg also credits much of his success to years of dedicated research on mental models, which he’s recently turned into a book with his wife Lauren McCann, Super Thinking: The Big Book of Mental Models. “Mental models are concepts ... be a better strategic thinker,” Weinberg says. He encourages people to think of mental models like this: When you first learn arithmetic, you learn addition, then multiplication based on addition. If you didn’t advance to multiplication, you could still combine quantities using addition, but it would take you much, much longer. Mental models operate the same way. “Once you know something, you can think in a higher-order way really quickly,” Weinberg says. On the other hand, if you didn’t have a mental model, you’d have to start from scratch, every time. It’d be more difficult and time-consuming to make good decisions, repeatedly. When he started training the DuckDuckGo executive team, Weinberg realized a significant knowledge gap: His team didn’t recognize more than half the mental models he’d instructed them to learn and use. That’s how Weinberg and McCann, a statistician, came up with Super Thinking—when he realized his current training method was inefficient and no other resource would suffice. Through their research, they also realized that many of the mental models were related. Almost all 300 mental models in the book are existing concepts. Super Thinking simply collects and organizes them into main themes—nine, to be exact. The last two themes are called “Unlocking People's Potential” and “Flex Your Market Power,” and the mental models in these chapters apply to leadership, management, and other business best practices. “People are really different, and if you want to manage effectively, every person requires different characteristics,” he says. That’s why effective managers take the time to understand personality types and strengths, using questionnaires like Myers-Briggs and DiSC. One notable mental model is called Joy’s Law, which tells us that all of the smartest people already work for someone else. “This means that you can’t corral smart people,” Weinberg says. “Instead, if you arrange people in just the right way and give them jobs that fit , they can reach extraordinary success both as teams and individuals.” In their book, Weinberg and McCann explain that Joy’s Law also overlaps with mental models like 10x Teams and Resonant Frequency, the latter coming from physics. “A lot of mental models come from different disciplines,” Weinberg says. “The idea of mental models is to take a multidisciplinary approach—to take the best ideas from all different disciplines and combine them to use them for general strategic thinking.” To understand Resonant Frequency at work, imagine an opera singer breaking a glass by hitting just the right note. “The same happens with people; hitting the right frequency and absorbing energy from the right role and jobs,” Weinberg says. But just as a singer can’t break glass with every note they sing (it’s actually quite rare), a team can't operate at a resonant frequency at all times. So, how do you know when you’ve reached it with your team? You constantly shift around your team and test to see which combination produces the best output. That’s what Weinberg does at DuckDuckGo, where he doesn’t have a traditional management hierarchy. Instead, they’ve divided management responsibilities between positions and operate based on objectives and projects, and the team doesn’t hesitate to shuffle around when needed. ”We are constantly moving people around to fit what they're most interested in and best suited for... to achieve these 10X Teams,” Weinberg said. Gaining Traction for Growth Weinberg previously authored Traction, which serves as a scientific experimentation approach to marketing. In it, he systematically lists 19 different channels that companies can use to gain traction with their audiences. “My advice is to not leave anything out,” Weinberg says. “It’s often one of the unusual things might be the thing that actually works.” Over the last 10 years, DuckDuckGo has found that different stages of growth have required different marketing channels. In the early stages of growth, the team used social media, content marketing, and PR, but these channels eventually saw diminishing returns. Since then, the team has transitioned to organic, viral growth and offline word-of-mouth marketing. In the last nine months,DuckDuckGo has succeeded at brand marketing that has also raised market share. “I wrote some long-form articles on Quora on topics like why to use DuckDuckGo vs. Google, how tracking works, how to avoid it, and more,” Weinberg says. “These got such high engagement, more than anything else.” Since publishing the posts, Weinberg and his team have been working to promote that content on platforms like Quora and Reddit. As one of the first native advertisers on Quora, their posts have been promoted to over 150 million people per month. “It’s all about finding bigger audiences and putting content in front of them that's compelling and native to the platform,” Weinberg says. The team has made just seven Quora answers and has been promoting them to 100 million people. It’s not cheap, but it’s working, he says. What is DuckDuckGo’s traction like at this point? Since the DuckDuckGo engine doesn’t track unique users, they can only report on total searches, which is currently at over 1 billion each month. For a company competing in a search engine space that’s dominated by one player, that’s pretty astounding. A top 100 website, the engine is ranked #4 in most countries and #3 in Australia. “Some third party estimates say we’re at 50 million users per month, which would be about 40 million searches per day.” What’s Next for DuckDuckGo? How does a search engine that doesn’t track customer data make money? “Search is unique because Google still makes money off search without having to track much ,” Weinberg says. Instead, Google conducts contextual advertising, which displays ads based on what a user is searching (versus behavioral advertising which uses customer data to display ads). DuckDuckGo can do the same contextual advertising without having to track any data. Calculating customer lifetime value (LTV) isn’t as simple, though. “It’s is even more difficult because of the lack of tracking,” Weinberg says. Instead of relying on customer data, the company measures factors like brand awareness and market share. Through national surveys, DuckDuckGo asks users if they're familiar with the brand, how they heard about it, and if they associate it with privacy. Feedback is an important tool at DuckDuckGo. As they’ve expanded their product line, the team conducted primary research on privacy and people who are interested in privacy. “We ran different methodologies, national surveys, user tests, and diary studies,” Weinberg says. DuckDuckGo’s diary studies involved a small group of 12 to 15 people who adopted the product and kept a diary for a period of two weeks. The team would then check during those two weeks to see how the subjects were using, navigating, and feeling about the product. “We found that would use DuckDuckGo but then click off to other websites that can track,” Weinberg says. “They felt unprotected, and we realized search was only part of the solution.” This inspired the company’s latest release, DuckDuckGo Privacy Browser, including extensions for desktop that help block trackers and enforce greater encryption across the internet. “It’s all about encryption and education,” Weinberg says. “We’re trying to simplify privacy.” Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Allie Decker Key Takeaways A history of Weinberg’s early startups and side projects The birth of DuckDuckGo and its mission to make the internet less creepy Why Weinberg decided to write a book on mental models, and how he uses them on his own team to build better leaders Why DuckDuckGo eschews traditional management hierarchy The marketing strategies Weinberg used to help DuckDuckGo achieve viral, organic growth An overview of DuckDuckGo’s monetization strategies How DuckDuckGo used diary studies as a methodology to gather insights What’s on the horizon for DuckDuckGo Weinberg’s advice for entrepreneurs who are competing against behemoths in their market
Thu, 18 Jul 2019 - 711 - 258: The Story Behind Game-Changing Travel Brand Away, With Founder Steph Korey
Selling Luggage and a Lifestyle How Steph Korey and Jen Rubio co-founded a luggage company for the modern adventurer that is taking the world by storm. Jen Rubio called her friend Steph Korey to vent about an irritating, expensive problem that just about any frequent flyer has endured at some point. She had a busted carry-on. Rubio was suffering from suitcase-demolition blues, and Korey wasn’t sure what brands to recommend. So Rubio texted a dozen of their trendiest, travel-savvy friends—the kind of people who would know all the best hotels in Bangkok—but they had no clue where to direct her to buy the perfect suitcase. They were quick to tell her which brands to avoid—sharing similarly frustrating stories of failure—but no one had the answer she was searching for. The search seemed hopeless. A single, action-packed year later, Korey and Rubio shipped the very first piece of Away carry-on luggage. Today, the luggage company that is so much more than a luggage company has sold over a million bags to customers across the world and captured the imagination of a generation known for its desire to chase down experiences instead of possessions. “This business isn’t really about luggage or suitcases at all,” Korey says. “What we’re really creating is a travel brand, and travel has the ability to really impact someone’s life.” With an eye on revolutionizing the luggage industry while leaving the world better than they’d found it, Korey and Rubio designed a bag that is durable, practical, and looks dang good in an Instagram photo. And that was only the beginning. Charting the Course In the beginning, Korey wasn’t sure she even wanted to start a business. She just wanted to learn more about the way other people traveled. She and Rubio had become friends while working together at Warby Parker, the online store that home delivers hip eyeglasses at affordable prices, so they knew firsthand the challenges that come with life at a startup. Rather than cannonballing into the deep end, the pair chose to start small and simply follow their curiosity. They decided to create a survey and send it to 50 people in a vast array of demographics, including male and female students, young professionals, established professionals, and retirees, who lived both in the US and abroad. After sharing information about how they traveled, how they packed, and what travel products they used, each person taking the survey was asked to forward it to five of their friends who also came from varied backgrounds. When the survey finished making its rounds, Korey and Rubio had over 800 responses to sift through. The pair was quickly able to start noticing themes, particularly when it came to how the existing luggage industry wasn’t meeting travelers’ needs. The survey results showed that travelers wanted a light piece of carry-on luggage that maximized packing space and still fit in the overhead compartments of airplanes. They also dreamed of a bag that could take a baggage handler’s beating if they decided to check it, including wheels and zippers that wouldn’t fail. Respondents also expressed the need for a place to put dirty, sweaty laundry after trips to the gym, summer walking tours through cities, or perilous mountain climbs. Oh, and they hated traveling with dead cell phones. With these results in mind, Korey and Rubio moved into the next stage of development. Korey says they were still unsure whether they wanted to start a business when they sat down with a group of designers from the fashion, luggage, and industrial design industries. They weren’t even sure when they decided to partner with two industrial designers to transform their findings into a product design. The team had plans for their new carry-on bag in one hand, and plane tickets to Asia—where they planned to meet with dozens of luggage manufacturers—in the other, but were still unsure where this journey would land them. It was only when a family in the manufacturing business told them their radical design could be actualized that it all clicked together. And just like that, the family agreed to manufacture the first 3,000 Away carry-on bags. Well, not quite. “I’m glamorizing this story a little bit,” Korey says. “It’s, in reality, probably a little more along the lines of we begged them to work with us.” Korey and Rubio spent days with the family, attempting to convince them to manufacture the bags. With every new pitch she used to convince the family—that they were about to revolutionize the luggage industry, and their business model was totally unique, and this was a chance to get in on day one with a company that was going to be huge one day—she felt herself becoming more convinced that this was it. It was finally time to start this business. Their manufacturers came around, too. “I’m entirely certain that they didn’t believe any of that,” she says. “Actually, they’ve told us that they didn’t believe any of that, but that we were so sincere and passionate about what we were doing that they just couldn’t turn us down.” Now that the ball was officially rolling, and Away was on the verge of becoming a reality, they had to jump a final, daunting hurdle. They had to find the money. Gathering Supplies “Raising any kind of capital is difficult, but raising seed capital is particularly difficult, because you can’t really tell the story of your business metrics at all, because they don’t exist,” Korey says. “You just have to tell the story of your vision and what you’re trying to create, and it really takes a leap of faith from investors.” But she adds that the knowledge she had gathered from her time leading the supply chain at Warby Parker, and Rubio’s experience in the marketing team there, gave them a definite advantage. “That is for sure the only reason that we were able to convince investors to take that leap of faith,” she says. “We knew what we were doing, and we would create something that resonated and that was successful.” In fact, she recommends that all aspiring entrepreneurs invest some time working at a startup. “I think it’s essential that you spend at least a couple years working at a startup first, for two reasons,” she says. “One, find out if you like it! Some people don’t like that chaos. … And then the second reason is it really gives you a sense of context of all the different pieces that go into creating something from nothing.” In the summer of 2015, Korey and Rubio were ready to create something, so they met with more than 20 different investors across the United States over the course of a week. After many failed pitches, and several uncomfortable red-eye flights, the pair met with Forerunner Ventures, a Silicon Valley venture capital firm that invests primarily in early-stage ecommerce brands. While most of the firms they met with simply didn’t understand what they were trying to do with Away, Korey says that Forerunner was captivated by their vision. “We’re really creating a broader brand and business around inspiring people to live a life of new experiences, and equipping them with all the products they need to make those travel experiences more seamless,” she recalls saying in her pitch. Within the first meeting, Forerunner was on board as a partner. With over $2.5 million raised, it was finally time to make some suitcases. Excited by the prospect of holiday sales, Korey says they set their launch date for November 2015. But as the date drew closer and the production of the first 3,000 suitcases was delayed until February of the following year, they had to get creative. Instead of selling the suitcases during the holiday season, they published a coffee table book called, The Places We Return To and paired it with a gift card for the February release of the first round of suitcases. “It was really one of the first moves we did as a brand really establishing ourselves as first and foremost about travel and not about travel products,” Korey says. In the book, they featured stories and photos of successful chefs, writers, photographers, and other talented professionals. Each person was asked about their favorite place in the entire world, why they loved it, and what they did during their visits. “We ended up with this collection of short stories that were very intimate because it was about people who were so knowledgeable about their favorite place in the world,” Korey says. Those featured in the book helped spread the word about the exciting new travel company, its mission, and the revolutionary new suitcase that was on the way. And the word traveled like a millennial with a break between jobs. Korey says they prepared 2,000 books and gift cards. By Christmas, every one had sold. Embarking on the Journey In February 2016, the first ever Away customer (his name is Adam) received his carry-on bag. Three years later, over a million bags in a variety of colors, shapes, and sizes have made it across the world in shipping boxes, overhead bins, and car trunks. The ribbed, hard-shelled luggage is becoming more recognizable by the day. By offering their luggage at direct-to-consumer prices, what was once reserved for only the chicest of travelers could now make it to the general public. They take their social impact seriously, as well. Away works with manufacturing companies that have, as they say on their website, “exemplary and thoughtful work environments we would want for our own employees.” The company has also partnered with several charitable organizations, including Peace Direct, Charity: Water, and Kode with Klossy. So what’s next for Away? Korey says the company is currently working to expand across Europe, Asia, Australia and other parts of North America. Taking a page from Warby Parker and other disruptive ecommerce startups, they’ve also launched a brick-and-mortar component to their business with six American storefronts and one in London. And as Away continues to expand, they’ll continue to release new products that support the modern traveler. Korey is excited to see where the company goes next, not merely because she wants the business to flourish, but because she genuinely cares about the needs of Away customers. From the moment Korey and Rubio sent their first survey, they knew that the “why” behind their brand lay directly at the feet of their customers. “You should never start a business because you want to start a business. It’s a terrible reason to do it. It’s going to be a long slog if you’re not really focused on a particular insight or a problem that you’re trying to solve,” she says. “Whether you’re just getting started and you don’t know where to start, or you’ve already gotten started, and you’re trying to figure out the next step, it really starts with deeply understanding the customer.” It starts the way Away did: with a need, an idea, and a customer survey. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways How one phone conversation between Korey and Rubio inspired the idea for Away The role data played in cementing the need for better luggage How the data insights were transformed into a product design Why one investor and one manufacturer decided to take a chance on Away How Korey and Rubio made the best of a worst-case scenario during their launch The journey from producing an initial batch of 3,000 units to selling millions Why Korey believes every entrepreneur should work for a startup first What the future expansion of Away looks like Korey’s words of wisdom for aspiring entrepreneurs
Tue, 09 Jul 2019 - 710 - 257: How Ryan Hoover Grew Product Hunt From Humble Email List to Tech Trendsetter
Hunting for the Next Big Thing: How Ryan Hoover established an online home for tech geeks that changed the way makers get inspired, recruit, and launch their products. When he wasn’t overseeing the gumball machines at his parents’ video game store as a kid or pushing carts at a home improvement store as a teen, Ryan Hoover was tinkering with tech. As personal technology advanced, and new programs and applications exploded, Hoover and his friends were fairly obsessed with whatever was emerging from the Silicon Valley pipeline next. Over the years, however, he found that there was no single outlet that satisfied his cravings to learn about the very latest products and developments. Sure, he avidly scrolled tech Twitter and Reddit threads. But what if, he wondered, there was some kind of a reliable destination where those in the tech field, or otherwise infatuated with its latest offerings, could show up regularly to talk shop—to share and learn about all the latest and greatest in tech? “The initial inspiration was just the desire to explore new technology,” Hoover says. So began a side project that, in just over five years, has become the wildly popular hub for the tech community, Product Hunt. In 2018, more than 1 million registered users and many more unregistered visitors stopped by Hoover’s creation, and over 20,000 products launched on the site. More than just a news site or message board, Product Hunt has evolved into the definitive place for makers to introduce their new projects and learn about what their peers are up to. But this great, big community all began with a simple email list. Building a Home for the Tech Community Hoover had been working in a product management position at growing startup PlayHaven, where he was employee #10. He values his time spent at the company, especially lessons learned about management. But at the time, he had only been out of college a couple of years, and was eager to try hs hand at something new, so Hoover moved into a part-time role to explore new projects. Going part-time gave him the space in his schedule that he needed to pursue something of his own. He’d been mulling over the idea of Product Hunt, and the time had finally come to make it a reality. It began as a simple email newsletter between friends sharing the latest tech product releases and mind-blowing apps they stumbled across. But soon, friends of friends and friends twice removed were added to the list. Before long, Hoover was managing an email list that included far more strangers than friends from all around the globe. He decided to bring his friend Nathan Bashaw on board to build a website, giving Product Hunt a home online, and the community continued to flourish. “We sort of filled this hole I think, in the market that no one really observed or noticed,” he says. “We do have Twitter, and we have subreddits around technology, and we have blogs and publications talking about new tech, but there is really no home for the tech community to talk about the latest products.” With a brand new website, Hoover planned to turn it into that home. But in order to host meaningful conversation, he knew he had to engage users with something other social platforms weren’t offering. Hoover says he intentionally focused on positive community building from day one by sending personalized welcome emails to each new user who joined Product Hunt. “As proud as I am of what we’ve built on the product and technical side, that’s not what’s going to make us successful or make us special and unique,” he says. “It’s really the people and the brand that we’ve built.” But the site membership ballooned rapidly, not only exceeding his ability to email each new visitor, but also evolving into much more than just a side project or an email list. Product Hunt grew to fill an important hole, helping entrepreneurs face a daunting task that so many in the tech space must take on at some point: product launch. Reinventing Launch Day Hoover noticed that traditional media outlets were the primary way that creators would get the word out about new products, but even tech publications weren’t particularly suited to support a launch. It’s also hard work to land coverage. “Historically, to get your first users, to get the word out, a lot of people would go to the press to do so,” he says. “They would have to have a relationship in many ways or get lucky cold emailing reporters and hoping that they’d get somebody to write about their company.” And when launch day is imminent, few creators even have the time to dedicate to those pitches. On Product Hunt, tech creators can share their new products in detail, build a following before launch day, and advertise to groups of people who are most interested. Makers, founders, and startups soon flocked to the website, eager to share their newest releases, and the community responded with upvotes galore. Even visitors to the site who had not yet built products of their own could find incredible value on Product Hunt, Hoover says. He points out that the site is full of inspiration for future makers, and is just a great way to pass an afternoon. “I like to think that it’s like a productive procrastination,” he says. “Instead of looking at maybe cat photos or memes on the internet, at least you’re spending time exploring what people are building.” And maybe gathering ideas for “the next big thing.” Comparing it to an afternoon in a museum for an artist or a visit to a music venue for a songwriter, Hoover says that a scroll through Product Hunt can trigger fresh ideas and show up-and-comers new ways to approach tech. “I think if you’re someone who’s excited to build a company in the future or if you’re a product manager, or whatever your role is, I think there’s a lot of value in searching for inspiration,” he says. As traction grew, so did their reach, and before long, San Francisco-based Hoover noticed that over 50 percent of Product Hunt’s audience was international. “It’s cool in that sense because it’s not just a reflection of Silicon Valley technology,” he says. “It’s a reflection of the world and the technology that’s being created all over the place.” Hoover had a successful brand on his hands. All he had to do was figure out what’s next. Planning for the Future In 2016, three years after Product Hunt launched, Hoover and his team mulled over whether they should begin another round of funding or pursue acquisition. Unsure which way to go, they decide to take the first steps down both paths, and then go with the one that had a more natural fit. Because community was such an important aspect of the business, both internally and externally, Hoover wanted to ensure that, if they did pursue acquisition, the companies would have complementary cultures. “That’s where a lot of acquisitions can go sour,” he says. “There can be a wildly different culture or vision for the company, and if that’s not aligned then it’s probably not going to work out long term.” During the company’s first two rounds of funding two years earlier, Naval Ravikant, the CEO and co-founder of AngelList, had invested in the company. He already understood what Product Hunt was all about and appreciated the work they were doing, so when he approached Hoover with an acquisition proposal, Hoover realized that this was the natural fit he had been waiting for. While he acknowledges that the AngelList culture isn’t a clone of the culture that exists within Product Hunt, he feels that they weave together into a perfect fit. “It’s sort of like when you hire a teammate,” he says. “You don’t want them to be just like you. Ideally, they have a similar belief and mission as yourself but also have different skills and different areas of focus. That’s kind of how I think of AngelList and Product Hunt.” Both companies have similar passions for tech and supporting founders, while AngelList focuses on engineering and Product Hunt approaches those passions from the angle of community building, Hoover says. Nearly three years have passed since the acquisition, and Hoover feels things are going well. Product Hunt continues to operate mostly independently, and has employees across 10 countries, all communicating via Slack. And the platform has continued to evolve. Today, creators in the tech space can advertise jobs, promote events, and launch new products with ease. They can also promote an upcoming product launch through the tool Ship, a three-in-one toolkit where makers can create landing pages, build email lists, and send out surveys without bouncing between platforms. As the world of tech continues to expand, Hoover sees a future of continued growth and ever-increasing user engagement for Product Hunt, particularly this year, as they direct their primary focus toward increasing users and community contributions. No doubt, as technology continues to advance far beyond anything we can imagine, Product Hunt will be there, ever inviting users to discover their next favorite thing. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways How Hoover’s insatiable curiosity about new products planted the seed for Product Hunt The evolution of Product Hunt from small email list to flourishing online community Why Hoover focused on building its brand and community from day one How Product Hunt reinvented “launch day” for entrepreneurs What Hoover believes is the most important thing to look for during an acquisition What inspired the Product Hunt team to build tools for its community members The three KPIs Product Hunt is focused on in the near future Hoover’s most valuable advice to entrepreneurs who are thinking of building a product
Tue, 02 Jul 2019 - 709 - 256: How The Meet Group CEO Geoff Cook Built An Empire Based on Human Connections
A Digital Meet Cute How Geoff Cook linked up dating apps and live-streamed video to form a happy and profitable relationship. Geoff Cook has built a small empire of successful meeting and dating apps—beginning long before anyone ever swiped right on Tinder—by following a philosophy of fearlessly trying new things. “Ten years from now, what will I have regretted—losing half a million dollars or not having done the thing that I wanted?” Of course, the fact that he has a half a million dollars to lose in the first place should be some indication that a lot of those risks have paid off. Thanks to a series of auspicious business decisions, starting with a profitable essay and resume editing business he launched as a sophomore at Harvard, Cook is living proof that experimentation lies at the heart of a successful startup career. While his fellow Harvard-attendee Mark Zuckerberg was busy refining Facebook, Cook launched his own spin on a social media platform. Rather than focusing on adding friends that users already knew in real life, his platform would be geared toward meeting entirely new people. So myYearbook was born. Today, myYearbook has evolved, changed hands, and expanded to encompass a whole collection of meeting and dating apps, all housed under The Meet Group, where Cook serves as CEO. “I tend to be a tinkerer,” he says. “I’ll push forward an idea even if it seems strange, just because it’s an itch and just keep moving the ball forward. Sometimes, opportunities fall out of that, and sometimes you just lose a lot of money. But it’s an itch I had to scratch.” In this instance, Cook’s itch proved to be so much more. Extracurricular Activities Cook started his first business in 1997 when, while still writing college essays of his own, he decided to put his economics classes to work and start a small side hustle editing his classmates’ papers and resumes. But in astoundingly short order, EssayEdge and ResumeEdge had scaled to millions in revenue, and the Thomson Corporation was knocking at his door with an acquisition offer. So Cook sold his first business in 2002, and just like that, he had the seed money to begin his first post-grad venture. But it wasn’t until he was in his mid-20s, when the social media era had just begun, that the light bulb flicked on. “The thought was that there needs to be a place to connect to people you don’t know,” he says. “It seemed both MySpace and Facebook were heavy into connecting to your real life friends.” Teaming up with his brother and sister, who were both still in high school, he created a social network designed to introduce rather than deepen existing friendships. Using games and his search algorithm, making new connections was simple. All they needed now were users. Luckily, the Cooks had the perfect in. At Montgomery High School in Skillman, NJ, where both of the younger co-founders were still in school, myYearbook rolled out in 2005. In the first two weeks, there were hundreds of users. Within nine months, there were over a million. But the road to a million required some clever maneuvering. “I think we built a pretty good mousetrap in the beginning, but we had nobody in it,” he says, laughing. “What really helped it take off was…we were able to create this great quiz app that ended up getting millions of users every month.” Reminiscent of today’s Buzzfeed quizzes, users would take a quiz to determine what Seinfeld character they were most similar to. They would then share their results on their MySpace profile, and when a friend—intrigued to learn whether they were an Elaine or a Kramer—clicked on the link, it whisked them away to myYearbook where they were invited to register. “Quizzes are a very high-uniques business,” Cook says. “You get a lot of uniques, but you get very few page views per unique, because you only basically need to see the quiz and the quiz result. So we turned that business from two page views per user to closer to two or three hundred, because we brought them into a very social experience.” Once the former MySpace users began chatting with the new people they met through myYearbook, the platform blossomed. “That was when we were basically off to the races,” Cook says. But unfortunately, “the races” had an expensive entry fee. ‘The Servers Were Melting’ “We had to raise some money,” Cook says. “The servers were melting. The traffic was growing. The expenses were going up.” So, in 2006, to keep their rapidly growing platform afloat, Cook and crew decided to begin their first round of funding. The success of this venture round left them with enough money to put a team and an office together. The social media website continued to flourish, and in 2008, they began a Series B round of funding that enabled them to raise $12.8 million just before the financial crisis laid waste to the economic landscape. Grateful for their luck, but tired of raising capital, they vowed that this second round of funding would be their last, which meant only one thing: it was time to monetize. Luckily, Cook had a rapt audience at his disposal. “I’m of the belief that if you can amass a big enough audience…you can monetize it,” he says, “especially if it’s an engaged audience that’s spending 10 or 20 or 30 minutes a day with you.” In 2011, revenue was up to around $25 million to $30 million, and Cook was thinking long term. What was next for his company? When he was introduced to Quepasa—a company similar to myYearbook but for South America, and the first publicly traded social network—he knew he’d found a fit. The two companies merged, transforming myYearbook into a publicly traded company, and Cook thought the time had come to rename the company, as well. “We were always a social network for meeting new people, but the name [myYearbook] to people who didn’t know that made people think of Classmates.com,” he says. “It was not really what we were about, so we changed the name to Meet Me.” As part of the merger, Cook stepped into the role of COO with the intention that he would soon move back into the CEO role. In 2013, he made his return as CEO of the company, a position he has held since. When asked how the job of CEO at a private, venture capital-funded company differed from that of a publicly traded company, he says that the two roles are far more similar than they are different. In a privately owned, venture-backed company, he says, the CEO answers to several large investors who are knowledgeable about the industry and who demand growth. It’s the same for a CEO whose company goes public, he says. There are just a whole lot more investors to keep happy. Cook says it can be difficult to know when the time has come to take a company public, but he did offer some insight for founders. “I think the best time to be public would be when you have a lot of insight into your future revenues and profits,” he says. “One of the key differences of a public versus private company is that…you offer some guidance for the year—or even long-term guidance—on how the business is going to go, and then you’re measured to a quarterly yardstick on that.” Without a degree of foresight, he says that going public would be an extremely difficult task. “If you don’t have enough insight into your business to know your revenues except within a very wide range, or to know your profits except within a very wide range, that’s probably not the best candidate to be public,” he says. “You’re just setting yourself up to have some very bad quarters. In other words, the key is predictability. But he reminds business owners that even the most predictable companies can present a challenge. “You’re never gonna know everything, and there’ll always be some surprises, because things happen,” he says. But despite the added pressures and challenges, Cook insists that there are many advantages to being publicly traded. “There’s definitely pros and cons of being public,” he says, “but I would say we’ve had more pro than con.” And the primary advantage of going public for Cook was a clear path toward acquiring other companies. Forming the Group Not long after myYearbook became Meet Me, the business was renamed The Meet Group, the moniker it’s known by today. Because the business encompassed more than a single app, the name change was apt, and it only became more appropriate as the years passed. In late 2016, The Meet Group acquired Skout, a meet-up app that was approaching its 10th birthday. Then in 2017, they acquired Tagged, the San Francisco-based meeting app with high engagement in the African-American community, and Lovoo, a European dating app. And this year, The Meet Group also acquired GROWLr, a dating app geared toward the gay community. But Cook says all of these acquisitions stemmed from a strategy inspired by one popular Chinese dating app. The company decided to start building a live-streaming video product after seeing its success at a Chinese dating platform called Momo. Cook felt the app was somewhat similar to Meet Me, and when Momo added live streaming, he says that about 90 percent of Momo’s revenue was a result of that service. The Meet Group wanted to give it a try. “We were also kind of clear-eyed enough to know that building a live-streaming business is a big commitment,” Cook says. “It’s essentially kind of an all-in sort of company bet.” It was the kind of bet Cook was comfortable making. So they dove in headfirst and got to work building up the infrastructure, talent, and moderation capabilities they would need to execute their plan. And it paid off in tens of millions. Cook says that their annualized live video revenue grew from $0 to $82 million in just 16 months. This became the inspiration behind their acquisition of meeting and dating apps—to integrate video and watch as revenues skyrocketed. “If we believed in our story enough to make that bet, well, then we could make that bet again and again,” he says. “There’s no reason not to double down, triple down, quadruple down on it.” As they acquired social apps and fitted live-streamed video into them, they noticed that the engagement on those apps markedly increased. “In meeting- and dating- and chat-oriented communities, there’s often periods of time where you just don’t have any inbound chats,” he says. “So, it’s kind of boring.” But rather than exiting the app, the users of the video-fitted apps can simply hop into the tab labeled “Live” during those gaps. “Our users are coming to us for human connection,” he says. “Meeting new people is kind of all about that. Interactive live video is actually human connection, right?” Cook says that around 20 percent of their users visit the live streaming sections of the apps each day and that those users, on average, spend 20 minutes more a day on the app. Users can watch popular streamers, send them comments and witness their reactions. They can also buy and send digital gifts to the streamer. “They do this because they want the attention of the streamer,” he says. “It’s almost like buying someone a drink at the bar. You don’t have to, but if you want a better shot, you maybe should.” Cook is pleased with the success The Meet Group has found by incorporating live streaming into the apps—but he still has his eyes on Momo. Thirty percent of the Chinese app’s users visit the live section daily, a goal that Cook wants to push toward. He also wants to continue pushing the boundaries of live video and sees one-on-one live video and various video dating experiences in the company’s future. As the social media landscape continues to coalesce around a select few apps, this self-proclaimed tinkerer believes that the unique nature of his business will allow it to keep flourishing. After all, as long as there are people searching for connection, there will always be a need to meet someone new. Interview by Nathan Chan, feature article reprinted from Foundr Magazine, by Erica Comitalo Key Takeaways How Cook’s resume editing side hustle at Harvard eventually led to an acquisition offer Why Cook decided to take a different route from MySpace and Facebook The surprising tactic that led to myYearbook surpassing a million users in nine months How Cook approached the funding and monetization of myYearbook The road to becoming a publicly traded company and the lessons learned How The Meet Group was born Why an investment in the live-streaming business changed the game What Cook has his eyes on for the future of The Meet Group
Tue, 25 Jun 2019 - 708 - 255: How Jim’s Group CEO Jim Penman Went From Mowing Lawns to Being a Household Name in Australia
Great service is hard to come by. This eternal problem is what Jim Penman set out to solve when he started his part-time lawn-mowing business—and even though his business has since grown into a multimillion-dollar enterprise known as Jim’s Group, it’s still the core focus. Jim’s Group was an unintentional empire, started by an aspiring academic back in the 1980s. Today, Penman’s company has almost 4,000 franchisees that provide over 50 services around the world. As a result, Jim’s Group has become a household name in Australia for all things home services. Here’s how Penman grew his business from a humble mowing service to the largest franchise in Australia. The Unintentional Founding of Jim’s Group In the 1970s, Jim Penman was pursuing his Ph.D. in history at Latrobe University in hopes of joining academia. His plans changed, however, when he graduated in 1982 and realized he had little to no chance of working in academia: “My ideas were far too wild.” At the time, Penman also happened to be operating a part-time lawnmowing business, as he made his way through the grueling grad school years. This turned into a full-time gig upon graduation. “It was something to do until my real business came along.” Or so he thought. While he waited for his real life to kick in, Penman was excelling at his temporary one. He had a passion for making customers happy, which made it easy for him to attract and keep regular clients. “It was the biggest thing I had going for me,” he says. He also found success building and selling ramps (for transporting mowing equipment onto raised beds or platforms) to his customers. As his business grew, he tried employing subcontractors, but he couldn’t find people who matched his quality of service. Then in 1986, necessity forced him to evolve. Major competitor V.I.P. Home Services came to town. This was a turning point for Penman. “I simply franchised in self-defense,” he says. “Otherwise, they’d swallow me whole.” For those unfamiliar, franchising allows other entities to use your company’s name, trademark, business strategies, and so on in order to share essentially the same products and/or services offered by the franchisor. Franchisees typically pay a licensing fee and a percentage of sales revenue to their franchisors. It’s an effective way to quickly expand a business without massive financial investment. Penman started with about a dozen franchisees, most of whom were previous customers. But even as Penman expanded his business, his focus still remained on the short term. He truly had no idea his business would grow to where it is today. “When people asked me how I thought might go, I said, ‘If it's really successful, one day I could have as many as 100 franchisees,’” Penman says, laughing. “That was my reach goal. Now, I have just under 4,000.” Franchising Jim’s Group to 4,000 Strong When Penman was a contractor, he had one simple idea: He wanted to make customers into raving fans. “I wanted customers to be so delighted that they’d recommend me and use me forever.” That was the core concept of Penman’s business, and when he franchised, he had the same concept for his franchisees. With that in mind, he developed a contract that would catch the eye of any prospective franchisee. His goal was to make it so enticing that potential owners would be “mad not to join the system.” Penman even got ahold of a competitor’s contract to better understand how he could make his more favorable. For example, he promised his franchisees that he wouldn’t take regular clients from his franchisees without their consent (unless a customer complained). He promised territory rights—meaning he couldn’t give any client in their area to anyone else, but they could take work wherever they wanted. Penman also promised an automatic right to renew. “This was all really strange stuff,” Penman says. “One reason it took nine months to get the contract done was because the lawyers kept arguing with me.” They thought he was being way too nice and that the contract was unreasonable and extreme. They encouraged him to “soften it down,” but over time, he actually provided his franchisees more rights. These included the right to move to another regional franchisor, to walk away from the franchise for a small exit fee, and to vote out their franchisor. At every stage, Penman put his franchisees first. In his opinion, the secret to looking after your customers is having a great staff. The same thing applies to great franchisees—you make them the actual first priority. “There’s nothing particularly clever about what has done,” he says. “It’s more how we do it that matters. The way we treat our franchisees, how we maintain quality, how we make sure they're looked after, that they're happy…that's the innovative part of the system.” As you can imagine, Penman’s franchisee selection process is quite rigorous. With such a favorable franchising package, many people apply, but few are chosen. “We are very selective,” he said. “Unless I’m convinced they’ll succeed, I don’t accept them.” When interviewing franchisees, Penman looks for a handful of key attributes: Good character, a concern for customers, reliability, and basic decency. He takes each interviewee on test drives to watch them perform their service. He also never accepts anyone who is not putting up their investment money themselves. “To run a successful cleaning or mowing, you don't have to be a genius,” Penman said. “You have to be somebody with good character.” Expanding the Jim’s Group Services In the first few years of his business, Penman didn’t just expand through franchising. He also began adding different service divisions. With a successful mowing system in place, Penman considered how he might apply his approach to other services, such as cleaning. He created a separate cleaning brand called SunLite and sold a couple of franchises. That avenue failed completely. Penman liked the idea of expanding under the Jim’s Group name, but he didn’t think it’d be successful, because the brand image was so vastly different. Who’d hire a cleaning service with a brand image of gardening and mowing? Well, a lot of people did. Penman added a cleaning division to Jim’s Group and found that the familiar brand name actually helped grow his new business. Penman continued expanding under the Jim’s Group brand to include services such as dog washing, computer services, bookkeeping, and roof repair. Today’s Jim’s Group has 52 divisions, and the company cross-sells through a client newsletter with about 500,000 recipients. “The brand just works far beyond what you think it would,” Penman says. When asked about how he manages such a wide variety of services, he says, “There’s no real difference between mowing and cleaning and dog washing. The basic issue is the same: Follow up on a lead, respond quickly, turn up on time, provide a reasonable quote, and satisfy the customer.” To Penman, it doesn’t matter what the service is. His goal is getting everyone to do provide consistent, high-quality service. Still, Penman is always making tweaks to Jim’s Group to constantly improve that service. For example, Jim’s initially offered a flat rate fee system to its franchisees. Over time, Penman learned that franchisees weren’t always following up on leads. In fact, a survey found that 25 percent of client leads never received a follow up. Penman changed the fee system to reflect a lower base fee and a separate charge per lead. After that, the number of leads not being followed up on dropped to just 3 percent. Penman also made recent changes to the Jim’s Group complaint system. In the pre-franchise days, Penman would see approximately 100 complaints for every 100 leads. After franchising, that number dropped to about five complaints. However, Penman wasn’t satisfied with 5 percent. To fix the issue, he went to his regional franchisors, who manually receive these complaints. The team decided that every time a complaint comes in, the franchisor would alert Penman and the respective franchisee. Then, the franchisor would call the franchisee to better understand what happened and how to solve it. Today, Jim’s Group has an automated complaint system. If a franchisee gets six complaints within six months, they receive a warning letter. Another six, and the franchisee has to attend retraining. They’re now down to just 1 percent, and working to cut that at least in half. In a world full of new ideas, how does Penman stay focused on Jim’s Group? “You might think we do 50 different things, but as a national franchisor, I do one thing: I provide a service. Jim’s Group is a very focused and limited company.” With almost 4,000 franchisees, it’s even easier to provide global services. Today, the company also benefits from a much more sophisticated software and a wide variety of resources for franchisees. Beyond Jim’s Group While Penman continues to expand Jim’s Group, he never forgot his original passion: research. The only difference now is that he can afford to really pursue it. Until his academic career stalled, Penman never considered becoming wealthy. “I've never been that interested in money,” he laughed. “I'm notoriously stingy. I go around the house and office turning lights off.” But now he’s able to use the success of his company as a vehicle for funding, so he can dedicate more time and resources into continuing his research on the epigenetics of social behavior. He believes this could help in the treatment of mental illness and addictive disorders. Valuable Advice to Franchisors In Penman’s opinion, many people have a misleading idea of business. They think they must have a breakthrough or a big idea to be successful. “It's not the brilliant ideas,” he said. “It's thousands of little ideas. Every day I say, ‘How can I do this better?’” Penman encourages anyone who wants to grow to focus on yourself before considering franchising. “If you don't do it well, there’s no point in franchising, because you don't have anything to teach anyone else.” He encourages entrepreneurs to build a brilliant business, then, master a working model that you constantly change to make better. Penman also believes in a people-first mindset, instead of money first. He encourages people to ask themselves: What's the long-term interest of the people I'm dealing with? How can I make my customers and franchisees into raving fans? “Every day, I’m asking myself the same question,” Penman says. Finally, he recommends keeping in touch with the grassroots. Every single franchisee has Penman’s personal number and email. “I get multiple contacts a day,” he says. “I’m always listening to what's going on. I also read through most complaints.” After all, it's the thousands of little things that count. Key Takeaways Penman’s journey from being an aspiring academic to unintentionally starting Jim’s Group Why the arrival of a competitor pushed Penman to franchise his brand The importance of running a customer-centric business Why lawyers were not fans of Jim’s Group’s franchisee contract The reason Jim’s Group started to expand to different service divisions How Penman’s success as an entrepreneur helped him circle back to his original passion Penman’s most valuable advice to aspiring franchisors
Tue, 18 Jun 2019 - 707 - 252: The Refinery29 Story—From Bar Napkin Sketch to Media Empire, with Philippe von Borries and Justin Stefano
Media, Refined How four founders turned a sketch on a cocktail napkin into an iconic digital media brand. One night in 2004, in a bar in New York City, three ambitious entrepreneurs huddled around a cocktail napkin and sketched out a vision. They essentially wanted to translate the concept of the mall for the internet, only instead of catering to big name brands and retailers, it would connect visitors to all of the amazing independent brands and makers that were flourishing at the time. That initial sketch—it started as a picture of a virtual mall—has evolved a lot since that night, and the team solidified around four dedicated co-founders. But 15 years later, the dream of Justin Stefano, Philippe von Borries, Christene Barberich, and Piera Gelardi has become a reality, and so much more, in the form of now-iconic digital media company Refinery29. “One of my biggest regrets to date is that we didn’t save the napkin,” Stefano says. Since they set out on that journey, the team has created an online space where media targeted toward women is distilled, removing the impurities of stereotypes, taboos, and shame. Initially focused on fashion and style, Refinery29 has since expanded to a staggering breadth of content. Covering almost every topic imaginable—from skin care to the latest in immigration legislation—Refinery29 is a comprehensive digital media company dedicated to elevating women’s voices. It’s built an international audience of more than 550 million across all its platforms, which include all major social media, a YouTube channel with nearly 2 million subscribers, an award-winning podcast in its fourth season, a short film series, an app, and more. But Stefano and von Borries, the two who initially had the idea for Refinery29, didn’t come from a background in publishing or fashion. In fact, as you may have noticed, they aren’t even women. But they saw a need, set out to meet it, and connected with the right partners to realize their vision and help it evolve. Refiners Assemble In the early 2000s, Stefano and von Borries were just a couple of friends from high school, who had recently graduated from NYU and Columbia, respectively, and were embarking on their first post-grad endeavors. Von Borries headed off to Washington, D.C., to work for a political startup called The Globalist, and Stefano took a position with the Civilian Complaint Review Board in New York City, where he investigated complaints against the NYPD. Despite the distance, the duo stayed close, and maintained a group of friends who were mostly in the creative space. They began to notice a frequently recurring topic of conversation among the group: dissatisfaction with media coverage, especially when it came to fashion. “Most of the media companies that existed, most of the magazine businesses, were fairly mainstream,” Stefano says. “They would write about big designers that bought pages in their magazines. That’s how the model worked.” Stefano and von Borries found that many of their friends still read these magazines, but not because they felt particularly connected to the content. “They didn’t think it was good. They didn’t think it was interesting,” Stefano says. “It was just what they were forced to read, because that’s what you could buy at a newsstand.” Their friends hungered for something with a more independent edge and authenticity, but couldn’t find it anywhere. So the pair had the spark of an idea: What if they created something that appealed to young New Yorkers by focusing on serving their audience rather than on serving big companies and brands. But with no experience in publishing or fashion, they knew they needed to call in reinforcements. At the time, Piera Gelardi was dating von Borries (they went on to get married), who worked as the photo director at CITY Magazine. When von Borries shared their idea and asked for her advice, she encouraged him to reach out to her former boss and mentor at CITY, Christene Barberich. Her knowledge of fashion and brands, as well as the world of publishing, would prove invaluable to the pair. Barberich says that she was already paying close attention to the transformation happening in the media landscape. She noticed that with the rise of the internet, the one-way nature of traditional publications, with outlets talking at their audiences instead of with them, was slowly being set aside in favor of platforms offering more conversational approaches. So when von Borries and Stefano shared their idea, she had a gut feeling that they were on to something big. She immediately reached out to Gelardi and told her that she didn’t just want to consult. She wanted to become a partner in the endeavor. Barberich’s infectious excitement for the project then made Gelardi reevaluate her own position as a consultant. “Because she wanted to sign up, it showed me that bigger vision and also reminded me to think about my own value in the equation,” Gelardi says. “Now we have four co-founders.” Building the Brand With the team assembled, the quartet was anxious to get their vision off the ground as quickly as possible. But all four of them still had day jobs, so much to learn, and very little money to put toward the project. They met in a coffee shop every night after work and on every weekend as they powered toward their goal. “It just became an obsession until we got it live,” Stefano says. They called in all kinds of favors with friends who were programmers, engineers, and graphic designers, and built the first iteration of Refinery29 over a period of six months. “It felt like forever,” Stefano says. “That six-month period, I think it felt years of work went into that.” But in June 2005, the wait was finally over, and the team celebrated the launch of Refinery29 at a bar called Union Pool over pizza and beers. Looking back at nearly a decade and a half and several waves of changes since, the founders are still proud of the original website they launched that day. “When you look back at the first iteration of Refinery29, it just really, deeply warms my heart, because I think it’s still beautiful,” Barberich says. While the website received some fanfare on launch day, growth was a slow, gradual process, and they struggled to be taken seriously, especially by traditional media outlets. “Most of the traditional publishers saw digital as a phase,” Gelardi says. “It’s so laughable now, but truly we would go talk to people, and they would act like we were trying to sell them a carpet or something. They thought it was a scam.” Challenges aside, the untested nature of their business model was also a blessing in disguise. “I think we were able to really pioneer this new space because it was, you know, an open road,” Gelardi says. Barberich agrees. “When you start out and you really are at the beginning of something, you have so much freedom to just test things,” she says. “I do credit that period—the first two years when we were essentially flying under the radar—as this really important testing ground for us.” They gradually tried out new content, such as a segment called “Neighborhood Watch,” in which local creatives shared fun activities and events they loved, and “Spotlight,” a section featuring products by homegrown, independent makers. “The products that we would feature would sell out overnight,” von Borries says. “That was the first time that something we had created had really been validated. So we started to look into commerce.” In early 2006, they decided to raise capital for the first time to fund a marketplace on their website, and in 2006, it launched, taking Refinery29 into its next phase. “We didn’t engineer this thing at all to be what it is today,” von Borries says. “In fact, I think the journey for us has been sort of going down the river and hitting different moments of momentum in the business and seeing the world shift.” And as the world shifted, so did they. Experiments and Expansions Before long, von Borries had quit his D.C. job and returned to New York City to work full time for Refinery29, and not long afterward the other three joined the work full time, too. Stefano says that, over the first five years, they sold ads, hosted live events, held sample sales (retail events that involve selling extra prototypes, often from big names in fashion or design) and did everything they could to drive slow-but-consistent growth that took them to $1.7 million by their fifth year. They then decided to raise capital to grow their branded content and native advertising. This resulted in a single-year leap to $8.9 million in revenue. “It was not a fast journey,” Stefano says. “I think that a lot of people have this belief that you’ll launch a business and within, you know, 18 months, you’re going to be on fire, but it often takes far longer. And I would say it took us probably 10 years before we felt like we had a business that was here to stay.” As von Borries and Stefano toiled away on the technical and management side, Barberich and Gelardi dove into the content and creative aspects of the business. “Our desire has always been to elevate underrepresented voices, to really bring these new ideas to the surface and challenge sort of what is in the mainstream, and how the media speaks to and about women,” Gelardi says. While the focus was initially centered on fashion and style, the pair slowly experimented with content expansions that appealed to the women who visited the site. Barberich was interested in topics surrounding health and wellness, so she tested the waters and found the audience receptive. Gelardi noticed that most mainstream editorial content on sex for women was “not focused on women’s pleasure or bodily autonomy,” so she looked to offer something better. As they grew, they found an almost endless hunger for content on just about every topic imaginable, and with each new addition, a new wave of readers joined the ranks. Soon, stories on politics, finances, and entertainment appeared on the website, continuing to meet the interests of modern women. They were also able to quickly learn from mistakes and make changes, thanks to the instant feedback provided by comments, shares, and analytics. “We really were focused on experimentation,” Gelardi says. “We were so invigorated by having access to the knowledge of our audience in real time.” With the kinds of data that traditional media outlets simply didn’t have at their fingertips yet, they were able to make informed decisions and pursue avenues that seemed utterly foolproof. But, Barberich says, information in this space can be both a blessing and a curse. “I think in some ways you lose that spontaneity,” she says. “Just having an idea to do something and being able to pursue it and not worry so much about what the outcome was going to be or worry that it was going to hit a certain traffic benchmark.” So while they take advantage of the analytics available to them, Gelardi says she always wants to leave room for risks. “I think influence also comes down to risk-taking,” she says. “It’s the art and the science; it’s not just about volume. Quality can be subjective, as well, but I think it is about risk-taking and knowing that core of who you are and staying true to it.” Barberich and Gelardi say that they see their roles as a balancing act between the numbers and creative spontaneity. “I think that that’s really what motivates people,” Barberich says. “When they feel like they’re making content that they deeply love, but that’s also touching a person’s life. The greatest success is to know that something struck a chord that is universally felt.” Scaling With Heart As the company continued to grow, all four founders felt an overwhelming pressure to keep the train on the tracks. “I think that a lot of people lose sleep in this company because they care so much,” Barberich says. “In laying that foundation, we want to make sure that people feel really fulfilled by it and it doesn’t lose its path.” They knew they had to stay true to the heart of their mission and remain in sync with their audience, all while rapidly expanding far beyond what they had imagined possible. “The audience has been the single most important focus—and staying committed to that audience—and clearly everything that’s happened in the world at large has sort of snowballed our commitment to serving women amazing content,” von Borries says. “Our belief is that, in this moment, to really build a long term, sustainable brand in this space, you really have to mean something to your audience.” And Barberich believes the key to scaling while staying true to the heart of the business lies in a single, but incredibly vital, part of the business. “Honestly, if I’ve learned anything in the near-14 years that we’ve been doing this it’s that it all comes down to the people that you hire,” she says, “because scale is all about the people that you’re trusting to handle the scale.” And she says they have been fortunate at Refinery29 to find and hire people who care deeply about the mission of their brand. “When you bring people on board that really, automatically love the brand, when things get har, and they will inevitably get hard, it actually helps those people to deal with the issues that arise and recover quickly.” Gelardi also believes that hiring new staff members who have that entrepreneurial spark inside them helps the brand thrive. “The industry that we’re in is ever shifting. The work that we do is ever shifting,” Gelardi says. “I think it requires that level of entrepreneurial creativity in order to really be able to roll with things and to find the solutions.” Establishing a Legacy Much has changed in the 15 years since the four founders first tossed around the idea for Refinery29. Especially on the internet. What once felt like a wide open space, now feels more like an overstuffed room pumped full of noise. Because of this, von Borries believes people have begun seeking more intimate, offline experiences, something Refinery29 is working to supply. “We were always doing events,” he says. “Back 15 years ago when we launched Refinery, we would host local events at stores and boutiques and would bring people together. We’ve always been thinking about the real world, and when you do something in digital, the real world is very validating.” One such example of Refinery29 IRL is 29Rooms, an art exhibition that features 29 collaborative spaces touching on topics meaningful to readers, such as virtual reality, body positivity and music. At the end of the day, all four founders are focused on building a legacy they can be proud of. “You can’t have a media company, I don’t think, without having a really true understanding of what it is you want to leave behind someday,” Barberich says. And she believes that today’s world, with its renewed focus on social justice, women’s rights, and political activism, is the perfect place for a platform like Refinery29 to thrive. Now more than ever, people are seeing unmet needs, especially in areas of representation and diversity, and feeling driven to meet those needs. “I think the motivation to start a business is fairly universal,” Barberich says. “You feel that there is something missing. You feel that there is something missing and usually, you’re not the only person.” She encourages those who feel that tug not to ignore it, but to step out boldly. “When that happens, you have to really face the facts that this is going to be scary. It’s going to be a ton of work. You’re going to make mistakes. You’re going to need the help of a lot of people, and a lot of times you’re going to need their help for free, and you have to be able to ask for that help, so great relationships really make a difference.” When looking at Refinery29, that was certainly the case. If one thing made Refinery29 what it is today, it’s relationships. The relationship built between two high school friends. The relationship between a mentor and her intern. The relationship between a couple that brought them all together. And the relationship between a business and its audience—a two-way exchange of encouragement and authenticity that has amplified the voices of women for 15 years and will continue to do so into the future. Key Takeaways Details on the night Philippe and Justin sketched the rough idea for Refinery29 on the back of a bar napkin One of Justin’s biggest regrets How long it took them to launch the first iteration of Refinery29 and how much it cost What the first version looked like and how the launch was received At what point they left their jobs and started monetizing the site The stats—audience size, subscribers, event sales—that show how their business is doing now The new media model and what to consider if you plan to start a media company When a bootstrapped company should start monetizing Monetization models for media companies Exciting moves coming up for Refinery29
Wed, 29 May 2019 - 706 - 251: How a Humble Typewriter Salesman Started a Software Company Now Worth Billions, With Red Hat Co-Founder Bob Young
The Open Source CEO Bob Young’s journey from renting typewriters to co-founding an open-source software company to founding a self-publishing platform. Entrepreneurship carries a lot of prestige these days. But back in the 1970s, when one freshly minted, Canadian college grad decided to start his own business, the only real perk was a business card that read, “Bob Young: President” that he could show to his mom. This, Young explains, was the single greatest benefit of starting a business back then. It wasn’t about the money, the eager investors, or the thousands of devoted fans (he didn’t have any of those). He just hoped he could reassure his mom that she didn’t have to worry about him anymore. “We now have the smartest kids in our high schools going to college to study entrepreneurship,” he says. “Whereas, back in my day, all the smart kids went and got ‘real jobs’ as lawyers or accountants or whatever and became CEOs of big corporations, and it was us dumb kids who started businesses because no one would employ us.” For Young, that meant printing up a fancy business card and, with a little money from friends and family, buying a small, failing typewriter rental business for cheap. From there, though, things got interesting. Young quickly pivoted from typewriters to computers, until a mid-career stumble led him to the world of open source software, a field in which he thrived. Young has since gone on to found Red Hat, a multinational company that offers non-proprietary software solutions to businesses. In 2018, IBM announced it would acquire Red Hat for around $34 billion. Today, Young is at the helm of a few businesses, including self-publishing platform Lulu.com, continuing his passion for democratic, open distribution models that favor the little guy. But despite his 40 years in entrepreneurship, he still lists just a single skill under “Specialties” in his LinkedIn bio: typewriter sales. “I’m a typewriter salesman, and that is the value I bring to the companies that I’m involved with,” Young says. “I’m a sales and marketing guy, and I have to hire smart accountants and smart engineers and smart product managers, because those are skills that I don’t have. My one contribution is in the sales and marketing side of the projects I’m involved in.” When Success Turns Sour Young realized almost immediately that his first business had to evolve, and fast. Shortly after he bought the typewriter rental business, he dug through old customer records to find those listed as inactive, and began calling them to try and entice them back into the fold. One of the businesses that had often rented typewriters from the previous owner was a phone company called Bell Canada. After speaking with the office manager, a sweet woman who invited him to come visit even though, “when you come by all I’m going to do is show you why I don’t need your services anymore,” Young headed off to downtown Toronto to meet with her. As she walked him through the open-plan office building, he saw several hundred employees, who only four years previously had used rented typewriters, at work in their cubicles. They were all staring into computer screens. “We then, immediately of course, got into the computer equipment rental business,” Young says, laughing. He managed Hamilton Rentals from 1979 until he sold it in 1984. He then founded Vernon Computer Source, another equipment rental business, that same year. In 1992, Young was on cloud nine. He had just sold his second computer rental business to technology services company Greyvest Capital, Inc., mostly for shares in the company, and took a stable, comfortable job there. Then came NAFTA (the North American Free Trade Agreement), which eliminated tariffs between the United States, Mexico, and Canada. That led to financial troubles for Greyvest, and suddenly Young’s life ceased to be as stable as he’d expected. “In ’93, I found myself in Westport, CT, unemployed with a net worth of something less than it had been when I graduated college 15 years earlier, only now I had three children, a wife and a big mortgage.” Just as Young had made his next big step forward in his career, it had all come crashing down around him. But looking back on this time in his life, Young is grateful for this heartbreaking failure, because he links it directly to the birth of Red Hat, Inc. Trying on a New Hat Shortly before its demise, Greyvest sent Young to New York to pursue the Unix workstation (a special computer designed specifically for scientific or technical endeavors) market, asking him to get to know the users in the big financial services companies and engineering companies in and around the city. Greyvest was in pursuit of new rental and leasing customers, and this was precisely what Young did best. To accomplish this, he had been attending evening user group meetings and offering a helping hand. He had even started a modestly sized newsletter. But when the bankruptcy of Greyvest forced him to walk away from the computer rental business for good, his goals shifted. What if, he wondered, he could transform his newsletter into something more? As Young explains, the true value of an online newsletter doesn’t lie in the subscriptions. It’s all about the mailing list. Products of value to those particular customers can be marketed and sold using the list. And so, ACC Corp. was born, and through it, Young transformed his mailing list into a catalog filled with programs and software that catered to his audience: the ACC PC Unix and Linux Catalog. Linux and Unix were two similar but competing operating systems initially released in the early 1970s. The major difference? Linux was free and open sourced. Unix was not. Through the catalog, he had the greatest success in the sale of Linux-based products, so when he asked his customers to share what else he could add to his catalog, and they directed him to a tiny project filled with potential called Red Hat Linux, he was intrigued. Red Hat Linux promised to be a new and improved version of the Linux Young’s customers already knew and loved, so Young knew he needed to check it out. Young called the creator, Mark Ewing, who was working out of his spare bedroom and his own bank account, and asked him to send over 300 copies of Red Hat Linux for him to sell through the catalog. Silence. Young questioned Ewing’s hesitation to do business with him. Ewing explained that he had only planned to manufacture 300 copies of Red Hat Linux in total. Young meshed his big dreaming style with Ewing’s engineering prowess, and the two co-founded the version of Red Hat, Inc. that still thrives today. He had taken a circuitous route to the software industry, but he was grateful that he finally arrived when he did. “Whether it was Steve Jobs or Bill Gates, they’re both contemporaries of mine and it’s been fun sort of growing up in the industry watching those guys be successful,” he says. “I was late to the party of success, but I was pleased with Red Hat’s success.” Young served as the company’s CEO from its founding in 1993 until shortly after the company went public in 1999. “Once we became a public company, and we had 400 employees, I realized I’d never worked for a company of 400 employees, much less managed one,” he says. As he faced down the wild host of new rules, regulations, and responsibilities that came with being CEO of a public company, Young recognized that the best thing he could do to ensure the company’s success was to embrace his own weaknesses and step away. “One of the tricks to being successful is to be self-aware,” Young says. “None of us—no human being—is anywhere close to being perfect. In fact, I’d argue that most of us are barely adequate, even among the most successful of us. But if you know what you’re good at, and you know what you’re not good at, then you can build organizations that protect themselves from your failings.” Young also recognized an entrepreneurial wanderlust stirring in his heart. “I’m an early stage startup guy,” he says. “I really, really like the big idea, and I really like selling the big idea, but once I convince people that the big idea is worth pursuing, I lose interest in it and I’m looking for the next big idea.” He explains that this is an excellent quality when you’re just starting a business and hunting for your great, big idea, but that, once a company is off and running, it can become a serious problem. “Repetition and precision are things I do not do,” he says with a chuckle. “I never have done. This is why I was such a terrible student as a kid. My mind just doesn’t work that way. My mind works always on the next idea.” So, he decided to call Matthew Szulik, who would become the next leader of Red Hat, into his office for a chat. “Probably the biggest single contribution I made to Red Hat’s success was getting out of Matthew’s way and letting him turn our fledgling Red Hat business into the billion-dollar enterprise it is today.” Although the time had come to bid Red Hat farewell, Young is still incredibly proud of their ongoing success. “It was this wonderful adventure that worked out astoundingly well,” he says. “We weren’t sure if we could build a business there, but we knew if we could it was going to be a huge business, because open source—sharing your software, sharing binaries with your customers—was simply a better way of building software than the previous proprietary model that all the other software companies were pursuing at the time. “To have that vision come true has been a bit of an out of body experience, and it gives me great pleasure,” he says. And just like that, the co-founder of Red Hat was off on a journey to find his next big idea and turn it into a reality. Open Source Publishing Today, at just shy of 60 years old, Young owns the Canadian football team the Hamilton Tiger-Cats and serves as CEO of craft marketplace Needlepoint.com and chairman of drone company PrecisionHawk. But the endeavor he says he is currently most passionate about was one he founded in 2002—Lulu.com. Through this print-on-demand self-publishing and distribution platform, Young wanted to revolutionize the publishing industry. He wanted to serve authors who write on niche subjects and catered to niche audiences. In other words, the ones that would be turned away by the traditional publishing industry, no matter the value the book offered to the market it intended to serve. “We serve the interests of the author,” he explains. “The publishing industry is set up to serve the interest of the readers, and the author is just a cog in their machine.” Young has a special passion for creators would otherwise get chewed up by “the machine,” no matter their industry. This is partly why he recommends founders consider platforms like Shopify to sell their products rather than relying on the “FANGs” (Facebook, Amazon, Netflix and Google). “The consolidation we are seeing on the internet is making early internet pioneers nervous,” Young says, “because the whole point of the Internet was to bring more democracy—to put more control in the hands of the consumer, of the user of the internet—and we are seeing it move away from there.” When a business owner sets up an Amazon store or a Facebook page to sell from, those customers no longer belong to the business owner. They belong to Amazon or Facebook. “You want your customers to have loyalty,” he says. “The problem with setting up your shop on Amazon is Amazon is competing with you for the brand and the attention of the customers you’re sending to Amazon, and that’s not in your interest of building a strong brand for your product and your service.” Young explains that when an author sends their customers to Amazon to buy their book, Amazon immediately begins recommending other titles in that subject to the customer before they have even been able to purchase the title they originally intended to buy. “Amazon has just absconded with your customer,” he says. “Amazon is happy to have you as a merchant, because they want you to bring all your customers to Amazon so they can sell them other things. Shopify is the exact opposite of that.” Rather than sending new customers to Facebook.com/YourBusiness, he urges business owners to start sending customers to YourBusiness.com. He also encourages founders to “pay attention to the principles behind the internet, not just the buttons that Facebook and Google give you.” “The internet itself is this great, open vista, and if you build your market using the foundational elements of the internet, no one can ever take that away from you.” He’s hopeful that the rising generation of founders and business owners will be savvy enough to navigate these stormy seas. “As this next generation of entrepreneurs get going, they’re going to understand…you’ve got to be really careful about surrendering your customer to your supplier,” he says. “You want to find suppliers who are going to partner with you to build your business, not using you to build their business.” Whether in the computer rental space, the arena of open source coding or his current realm of self-publishing, Young has always lived by the principal of democratizing access to the tools that build success. Through collaboration and inviting more voices to the table, advancements come more swiftly, and this is a principal that even Young, a self-proclaimed “dumb kid” who started out selling typewriters, can embrace. Bob Young’s Tips on Cultivating Self-Awareness Bob Young says that he owes much of his success to self-awareness. By leaning into what he is good at and hiring others to cover areas where he struggles, this self-proclaimed typewriter salesman has found remarkable success. Young insists that even those who struggle with self-awareness can develop it, and these are three of his tips for harnessing that growth: 1. Put the Pride Aside “So many of us are prideful,” Young says. “We worry about being criticized.” But as founders, and as humans, there is always room for growth. Rejecting that evolution in favor of belief in our own mythology only prevents us from reaching our greatest potential. Young says that, in order to achieve any increased level of self-awareness, pride first has to be eliminated from the equation. 2. Listen to Critiques More Than Compliments Once pride is silenced, it’s time to let the criticisms reach our eyes and ears, even though it may sting a little. “We worry that people think we’ve made a mistake or that we’ve done something dumb,” Young says. “If you can flip that around and look at your mistakes as your biggest single learning opportunity that day or that week or that year, now when people criticize you, they’re more valuable to you than the people who compliment you.” Choosing to embrace our own failings today, no matter who brings them to our attention, is the only way to make sure those same failures don’t repeat tomorrow. 3. Be Honest With Yourself Young is comfortable with sharing the skills he lacks, especially in the area of customer support. He explains that, although he loves his customers, he cannot find the patience to help a new customer struggle through a problem he’s solved for 600 customers who came before. He says that it took many years, and many, many customers pointing out this flaw, for him to internalize the criticism, but once he did, and once he genuinely considered the critique, he recognized that he and his customers would be better served if left that work to someone else. He says his brain simply isn’t wired for customer service, so he relies on those around him who are. To maximize self-awareness, Young says we should accept what we are great at, grow where we are able, and rely on the talents of others to support us where we perpetually fall short. Key Takeaways How Bob got his start in entrepreneurship by selling typewriters How a visit to Bell Canada convinced Bob to make the transition from typewriter rentals to computer rentals How his net worth got wiped out and what he did next His transition from equipment leasing to software when he cofounded Red Hat Why he decided to step away and hire a CEO for Red Hat The project he cares most about now: print-on-demand self-publishing and distribution platform Lulu.com Why he’s paying a lot of attention to Shopify Why the next wave of entrepreneurs needs to be wary of relying on big tech companies How to cultivate more self-awareness as a founder His thoughts on Red Hat being acquired by IBM for $34 billion
Thu, 23 May 2019 - 705 - 250: How Dollar Shave Club Used Mission, Humor, and Viral Videos to Lead Up to a $1B Acquisition, With Michael Dubin
A viral video put Dollar Shave Club on the map, but it took a team to get it where it is today. CEO Michael Dubin talks about DSC’s growth, acquisition, and expanding product line. It was the commercial seen round the internet. On March 6, 2012, Dollar Shave Club uploaded its first YouTube video, featuring one-and-a-half minutes of offbeat humor, during which founder Michael Dubin rides in a kid’s wagon, wields a machete, and encounters, among many other things, a person in a bear suit. “Do you think your razor needs a vibrating handle, a flashlight, a back scratcher, and 10 blades?” Dubin deadpans while riding a forklift. “Your handsome-ass grandfather had one blade—and polio.” It was a totally unique way to explain a simple concept: For an affordable fee, Dollar Shave Club subscribers would get quality razor blades delivered to their doorsteps on a regular basis, thus skipping the trips to the store for overpriced, gimmicky alternatives. And people loved it—the resulting traffic from the video’s launch crashed their site. Since then, that commercial has been viewed over 26 million times on YouTube. It cost only $4,500 to produce, yet it launched the company on a trajectory that would later lead to a $1 billion acquisition by Unilever. “It put us on the map, no doubt,” Dubin says. “We wouldn't be where we are without it.” But this isn’t a story about Michael Dubin and his famous viral video. It’s not even a story about razor blades. As Dubin is quick to point out, getting DSC to where it is today required a team effort. And with its ever-expanding product line, today, the company is about so much more than a good shave. Timing Is Everything—In Comedy and Business They say the most important thing in comedy is timing; the difference between roaring laughter and painful silence can be a fraction of a second. Maybe this was something Dubin learned during the eight years he spent training at New York City’s Upright Citizens Brigade, an improv theatre with notable alumni such as Saturday Night Live’s Horatio Sanz and Amy Poehler. While taking improv classes, Dubin worked various media jobs, starting as a page at NBC, then moving into production and news writing at MSNBC, and eventually, getting into digital marketing at SportsIllustrated.com. But it wasn’t just Dubin’s punchline delivery that set DSC up for success out of the gate. Even the timing of its launch was strategic. As Dubin told NPR’s Guy Raz in a “How I Built This” interview, he chose that specific date—March 6—because, with his media background, he knew that news outlets would be hungry for a tech story leading up to the annual South by Southwest conference that takes place in Austin in mid-March. The launch date also coincided with Dollar Shave Club’s announcement of its $1 million seed round. It Takes a Team A viral video can be a major boost for any company, but it’s far from the secret to a successful business. For that, you need great people, and assembling them is easier said than done. “Big business is a team sport,” Dubin says, “and it requires talent from all corners of the universe that will help you build what you're looking to build.” Knowing where to find your future teammates can be a challenge. “Finding great talent is always going to be the hardest thing that any entrepreneur does,” Dubin says. “Because, ultimately, there's somebody out there in the marketplace that can help you do your job really well and help you build your company the best way possible. But you've got to go out and find them in the great wide world.” That’s why Dubin is a fan of recruiters, “because recruiters are paid to have knowledge of the network that you're looking in.” When building his team early on, Dubin had just moved from New York to Los Angeles and lacked a network in his new city, so he relied on his early investors to make introductions. “That's a great reason to take investment—besides, obviously, needing to take it to drive growth and invest where you need to.” To attract the right talent, Dubin recommends founders do two things. First, focus on your company’s mission. What are you trying to achieve? What gaps in the market are you trying to fill? Why do you come to work every day? “Really talented people want to work for companies that have purpose,” he says. “And that's defined in the mission of the company.” Second, consider granting employees equity. “People want to feel like they're participants in the success—if you ultimately do have the success—and that's super meaningful.” And if your mission changes, that’s okay. It’s natural for it to evolve as your company grows; that’s certainly true for Dollar Shave Club. “It started out more as a shave-only proposition,” Dubin says. “And then it grew out into becoming…more of a men's health, more of a men's grooming platform.” What’s their mission today? “Help guys take care of their minds and bodies so they can be their best selves.” Growth, Acquisition, and Expansion Taking on the shaving industry was a gutsy move. To put that into perspective, it was around the year 1900 that King C. Gillette invented the world’s first disposable razor, according to Gillette’s website. So when Dubin decided to disrupt the shaving market, he was going up against a company that had already been in it for over 100 years. Eight months after the launch of its first commercial, Dollar Shave Club secured a Series A round of $9.8 million. And two years after that, the subscription razor blade company hit 1 million members. In July 2016, Unilever acquired Dollar Shave Club for a reported $1 billion. At the time, DSC had 3.2 million members and was expected to exceed $200 million in turnover (which is sometimes defined as net sales and sometimes defined as revenue) that year. Dubin stayed on as CEO and continues to serve in that capacity today. “Unilever's been very good to let us run the company our way,” he says, “and that was part of the design.” Today, Dollar Shave Club boasts over 300 employees and continues to expand its product line and global footprint. Beyond razors, DSC now sells cologne, body wash, shampoo—even flushable toilet wipes (they’re called One Wipe Charlies). It also has sites live in Australia, Canada, and the UK, with plans to expand further in the next couple of years. Knowing When It’s Time to Add a New Product For a long time, razor blade subscriptions were Dollar Shave Club’s bread and butter, and it gained a loyal following with its single product line. But growth almost always means product expansion, so how can a founder know when it’s the right time to add new products? “You have to stay true to your core,” Dubin says. “You have to develop credibility in your core categories before you can expand outward. There is such a thing as doing that too fast.” Timing matters. Move too fast, and you could confuse your customers and dilute your brand. Too slow, and you may miss your opportunity to take the market. As for figuring out what your next product should be: ”You should definitely do your research. It's always a blend of gut and research.” Time Well Spent These days, Dubin doesn’t star in any viral videos, but he told Foundr about a recent, albeit lesser-known, YouTube video of his commencement address to the 2018 graduating class of his alma mater, Emory University. In it, he sums up the lessons he’s learned over the years, including one about “little choices.” “They're the ones you make more frequently, maybe even every day,” he says to the graduates, “the ripple effects of which, I believe, actually have a bigger impact over the course of your life. They’re choices about where to invest your time.” Given Dollar Shave Club’s meteoric success, it’s safe to say that Dubin and his team’s time has been well spent. 5 Entrepreneurial Lessons from Michael Dubin Dollar Shave Club is a massively popular company that attracted a billion-dollar acquisition. What are some parting lessons we can take from this interview with CEO Michael Dubin? Video isn’t a magic bullet.“What worked for us is not necessarily going to work for everybody,” Dubin says. “Unfortunately, there's no easy answer here. The best advice that I can give to somebody is to find what makes you special, understand what unique talents you have or your team has, and leverage those to try and cut through the noise. It's not easy. It's not easy, and video is not the surefire way to do it.” Culture is more than company perks.“Culture's a tricky word. A lot of people mistake culture for meaning like a coffee bar and a beanbag chair for everybody or stand-up desks, and that's not what culture is. Culture is a much more complex, complicated animal than that. And to me, culture means…people are into their jobs, they feel like they're contributing to the mission, they feel like they're being valued for their contributions and recognized for their contributions, and that they have a career path at that company—that's culture. All the other stuff is sort of superfluous icing on the cake.” Only use a subscription model if it enhances the customer experience.“A lot of people get addicted to this notion of a subscription business because they love the idea of monthly recurring revenue, but you should only be launching a subscription business if it's going to be an enhancement to…the customer's experience. The customer's experience is the most important thing. If delivering them a subscription is going to make their life better or happier, you should offer a subscription. And if not, you shouldn't.” Expect hard times. “You're going to go through hard times. You're going to go through lonely periods. That's to be expected. There's really nothing that anybody can tell you that's going to help make that feel better. … You just kind of have to go through it, truly.” Take breaks. “My advice to entrepreneurs who are starting companies is you have to be relentless, but you also have to step away and take breaks. You can't work yourself to death because it's a marathon, not a sprint.” Key Takeaways His media background and the social network for travelers he tried to start before launching Dollar Shave Club The importance of building a great team to help your business grow How to attract and retain high-quality talent How Dollar Shave Club defined its mission and how it has evolved over time What the early DSC team looked like The famous first Dollar Shave Club video Life after Unilever’s acquisition of DSC Challenges the DSC team faces as they grow the brand How to know when to launch another product Dubin’s thoughts on the physical product subscription model How to build a healthy company culture
Thu, 16 May 2019 - 704 - 249: How Blinkist’s Bite-Sized Book Summaries Attracted 9M Users, with Niklas Jansen
Raise your hand if you’ve experienced the all-too-common dilemma of wanting to read new books but instead falling slave to long hours and mindless digital content consumption. (I’m raising mine right now.) Self-education takes time, and time is often the one asset we don’t have nearly enough of. Well, Niklas Jansen found a way to give his customers more time. “Some of my friends and I didn't have time to read books, and we were working full time. We also noticed more people consuming content on their mobile phones,” he says. “We wondered, ‘Is there a smarter way to combine these two things?’” This was the very question that Niklas Jansen and three of his friends addressed as they formulated the idea for Blinkist, a mobile app subscription that provides 15-minute insights from the bestselling books we all wish we had the time to read. Today, Jansen and his team of 130 are bringing ideas from the best nonfiction books to some of the busiest people on the planet. Blinkist is paving a new path for modern content consumption and self-education, and they’re doing it in a remarkable way. Launch Day Jansen has been an entrepreneur since he was in college. He did consulting for a couple of years, but once the idea for Blinkist hit him, he dove right in and founded one of the most unique startups in Berlin. That was seven years ago. As Jansen and his three co-founders developed the company, they each managed different parts of the business: content, product, operations, and marketing. (Jansen owned the product side.) The team tried to stay lean from day one, a decision they’re happy about today because, as they scaled Blinkist, they didn’t become distracted by a large team. “We had to figure out so much every day,” Jansen says. Keeping the team small allowed Jansen and his co-founders to hustle every day, soaking in new knowledge by trying new things, reading voraciously, and talking to others. This process was especially important for Jansen, as he had no experience with product management prior to Blinkist. Despite initial obstacles, it only took a couple of months to build the first version of the Blinkist product. To keep the development process simple, Jansen and his co-founders decided they only needed three things to get started: a mobile application, 50 nonfiction books to populate the app, and a marketing plan. “After five months, we were ready to launch,” Jansen says. “We were incredibly productive in that time.” As the Blinkist team did their competitive research, they found that there was only one similar product on the market, but since it served a different audience and used a different business model, they weren’t worried. “We designed our content for mobile from day one in order to be different,” Jansen says. Blinkist closed their launch day with five customers, “after our parents, of course,” Jansen says, laughing. To promote the launch of their product, the Blinkist team published a variety of articles in startup magazines and relevant websites. Jansen had high expectations for launch day. “I thought everything was going to explode,” he says. The number of initial Blinkist customers was fewer than Jansen expected, but he still enjoyed watching people discover and purchase the product. “It felt good to watch it grow.” And grow it did. Blinkist is now a worldwide product with major markets in the US, Canada, Australia, Great Britain, and Germany. Growing Sustainably The leap from five customers to more than five global markets wasn’t an easy one. It took years of trial and error, but Jansen and his team eventually scaled Blinkist to a successful, profitable level. With unique approaches to fundraising, marketing, and team management, Jansen has lots of valuable insights to share with aspiring founders. As they built the company, Jansen and his team raised about $35 million from investors in the US, Germany, and other parts of Europe. They raised their first $300,000 as early stage, pre-seed money. If he could, Jansen isn’t sure that he’d do that part again. “We felt a pressure to use it without having figured out a lot of things,” he says. He also suggests other founders be careful about taking on too much money too early. “Investors have expectations, and building a company takes time. Mistakes can be more costly if you have too much money in the bank.” Of course, money can be helpful, but with too much, it can be tempting to spread your business too thin, too early. “If you can do one thing really, really well, that can be your superpower,” Jansen says. Working from a small budget can also help you focus. Jansen boils Blinkist’s marketing strategy down to one word: Sustainability. “It’s important that whatever you do in marketing to grow your company is repeatable,” he says. For example, Jansen wouldn’t consider PR a sustainable growth channel. It might work a few times, but after one or two days, PR stops being effective. “Marketing needs to be able to be repeated and sustainable,” he explains. “You don't want to burn money for customers.” As for Facebook and other social advertising, Jansen and his team know precisely how to target their customers and how much they’re going to spend on acquisition. Through different campaigns focusing on different creative elements, his team was able to conduct A/B testing and determine what the best parameters were. They now apply those parameters to replicate successful campaigns. “It involves lots of mechanics and details, but once you find something that works, you can scale it,” Jansen says. “That's why we call it a ‘marketing machine.’ We automate as much as possible.” Recently, Blinkist has started investing in TV advertising—a completely new channel for the company. “It’s very different from the others, but it’s exciting because now we’re part of mass marketing and mainstream media,” he says. Additionally, Jansen and his team rely heavily on word-of-mouth marketing and customer stories to grow the Blinkist brand. “It’s a very shareable product,” he says. “People share stories about how they use Blinkist and how it improved their lives.” The team also polls customers and uses the feedback they receive to further improve the mobile app. With such a robust strategy, one must wonder how the Blinkist team manages so many marketing channels. Contrary to what you might think, the team doesn’t outsource any of its marketing strategy or creative work. Blinkist keeps everything in house, which is helpful for making lots of updates and changes to a campaign or strategy. “We want full control of the whole customer experience and what customers see from Blinkist,” Jansen says. What started with the Blinkist co-founders testing various ads has turned into a team of six to seven tech marketing experts. Today, they manage their marketing by channel: Two managers for paid social (such as Facebook and Instagram), one for paid content (such as Outbrain), one for AdWords and Google, one for podcast and influencers, and one for TV. The team also retains a creative team in house, including videographers, designers, copywriters. These folks work with the Blinkist channel managers, who develop audiences and strategies. These managers, in turn, go to the creatives for the right vision or creative assets. A single, in-house creative team can be tough to share across an organization, but Jansen believes Blinkist has established a good model for dividing resources. “Some designers work directly with marketing. Video and copy are shared with other teams, but they do prioritize marketing needs.” At Blinkist, this model works because the marketing sees faster duration cycles than the product teams do. Marketing has daily cycles of content production, whereas product managers deal with longer cycles of design-build-test-repeat. The entire Blinkist team still resides in Berlin. “We haven't expanded offices yet,” Jansen says. “So far, we’ve established a global business, but we work out entirely out of Berlin.” What’s Next While Jansen doesn’t plan on expanding the Blinkist team outside the Berlin office, he is excited for the international growth of the Blinkist product. The team is currently pushing into brand new markets and eventually wants to expand to be a truly global brand. They’re also making changes to how they select and source the content available on the Blinkist app, by selecting local curation from different markets. “We want to find what's popular in each market and be very local when selecting and curating content,” Jansen says. He’s also aspiring to build out more original content under the Blinkist brand. Right now, the product is mainly focused on third-party books and authors, but there’s a potential to create a learning space and provide new content formats. At the moment, Blinkist is a curation tool, but Jansen can see the product creating original content, not unlike what Netflix has done. “We know what users like and their behaviors and favorite topics,” he said. “We can use that data to make original content that our customers love.” Above all, Jansen encourages other founders to stay on top of what’s happening. “Learn as much as you can,” he says, “whether through books or podcasts or Blinkist!” Key Takeaways The origin story of Blinkist How Blinkist can publish summarized content of nonfiction books and why they see themselves as a marketing tool for authors and publishers What the first six months of building the product looked like Why Jansen thinks Blinkist raised money too early The inherent virality of Blinkist and other growth levers they’ve pulled The Facebook ad “machine” they’ve put together for sustainable marketing A breakdown of their paid social strategy International growth and the introduction of original content on Blinkist
Tue, 07 May 2019 - 703 - 248: On Emerging Technologies and Creating a World of Abundance, With Peter Diamandis of XPRIZE
The Sky’s the Limit Space enthusiast, doctor, and serial entrepreneur Peter Diamandis on abundance, exponential technologies, and why the world is better than you think. Ever since he was a child, Peter Diamandis has been looking up, literally and figuratively. Captivated by the lunar landing in 1969, he’s spent much of his life pushing the boundaries of space exploration through his various companies. And as a proponent of the concepts of exponential technologies and abundance, he has a refreshingly optimistic outlook on the future. “I believe that we're heading towards a world where we can uplift every man, woman, and child on this planet,” he says. And as the founder of more than 20 companies in the fields of longevity, space, venture capital, and education—perhaps most famously the XPRIZE—Diamandis is doing his best to advance the world he envisions. “I’ve always followed my passion,” he says. “And at the end of the day, that’s really the world that I feel extraordinarily lucky to live in, one where I am doing what I want to do.” Exploring Medicine and Space Born in New York to Greek immigrant parents who both worked in medicine, Diamandis felt obligated to become a doctor just like his father. But as a child of the 1960s who was fascinated with the Apollo program, he also felt compelled to explore space. So, he did both. After getting accepted into Harvard Medical School, Diamandis co-founded the International Space University, which today has graduated more than 4,600 students from over 105 countries, and started International Microspace, a rocket company that was later acquired by CTA Incorporated. Even after he obtained his medical degree, instead of practicing medicine, Diamandis continued building businesses, many in the area of space. He founded XPRIZE, a global contest whose winners include a team that developed the first non-governmental manned spacecraft; and Zero-G, which has helped people like Stephen Hawking, Buzz Aldrin, and Martha Stewart experience weightlessness in a modified Boeing 727 that performs aerobatic maneuvers at 32,000 feet (if you fancy a ride, the Zero-G Experience starts at $5,400 per person). While Diamandis has worked hard to get here, he’s having a lot of fun too. “I've always been a 9-year-old kid pursuing my dreams,” he says. Turning Science Fiction Into Fact Looking at Diamandis’ long list of companies is a bit like reading synopses of science fiction novels. Space Adventures sends private citizens to the International Space Station to live and work alongside astronauts. Human Longevity seeks to extend the human lifespan through genomic and phenotypic data. And XPRIZE hosts multimillion-dollar global competitions to solve humanity’s most challenging problems. There are some truly out-of-this-world inventions that have emerged from XPRIZE competitions that are worth noting here. To make space travel possible for private citizens, Mojave Aerospace Ventures designed a privately financed manned spaceship with technology that was licensed by Richard Branson for Virgin Galactic. To provide clean water to the underprivileged, the Skysource/Skywater Alliance invented an energy-efficient device that gleans water from thin air. To make healthcare more accessible, Team DMI created a device that can run hundreds of lab tests on one drop of blood, alerting the user within minutes if they have a cold, the flu, or even Ebola. Diamandis says that XPRIZE helps address just one of his many passions: “How do I empower entrepreneurs to really go big and change the world?” On Emerging Technologies and Abundance Watch the evening news or read the newspaper, and the world seems pretty bleak. But Diamandis believes we have good reason to be hopeful. One of his most popular contributions is his concept of abundance, which he’s given a TED talk and written a book about. It’s the idea that technology is transforming scarce resources into abundant ones, quickly closing the gap between the haves and the have-nots. Google, for example, has given the general public access to a storehouse of knowledge that history’s greatest philosophers, mathematicians, and scientists could never have imagined. Further, exponential technologies—such as artificial intelligence, 3D printing, and virtual reality—have made it easier than ever to produce solutions at scale, solutions that, previously, only governments and massive corporations were capable of producing. “Energy is a perfect example,” Diamandis says. Humans went from killing whales to get oil for lamps, to mining mountains for coal, to drilling the ocean floor for oil. Meanwhile, the sun bathes the earth in more energy than we could use in a year. An exponential entrepreneur, therefore, would find a way to use technology to efficiently harness the sun’s energy and distribute it to the masses. Through the lens of abundance, Diamandis sees an opportunity for entrepreneurs to change the world, so much so that he created an exclusive community, Abundance Digital, that aims to do just that. He hosts monthly webinars and provides courses to inspire its roughly 3,000 members to think bigger, teaching them that “the world's biggest problems are the world's biggest business opportunities.” Because of exponential technologies, Diamandis envisions a future where AI makes education and healthcare effectively free and available to all, where self-driving electric cars make using a car service cheaper than owning a vehicle—a future where nothing is truly scarce. Finding Your Massively Transformative Purpose Though Diamandis keeps his eyes to the sky, that doesn’t mean he has his head in the clouds. He acknowledges that every new venture carries the potential for failure. When asked if he ever has doubts when starting a new business, he says, “Of course, I mean, I'm not insane. But it doesn't slow me down.” That’s because, though he recognizes entrepreneurship’s inherent difficulties, he draws strength from his unshakeable sense of purpose. Diamandis recommends beginning every entrepreneurial journey with determining your “Massively Transformative Purpose,” or MTP. This is what keeps you going when the going gets tough; it’s the thing that, even if you do not succeed, grants you the satisfaction of knowing that your time was spent improving humanity. “People have to understand why they're building their business,” he says. “If you're just trying to build a business to make money, I view that as sort of an empty pursuit, and when it gets hard, you don't have the emotional energy to push through and succeed.” So what are Diamandis’ MTPs? He has a few: opening up space exploration to more people, extending the healthy human lifespan, and inspiring entrepreneurs to solve the world’s biggest problems. For an advanced entrepreneur, having three MTPs is fine, but Diamandis recommends beginners start with just one. On Hiring a Team and Finding a Co-Founder Behind every great entrepreneur is a great team, and Diamandis is no exception. He has a roughly 12-person “strike force” that works with him across all of his ventures. Each team member has been carefully selected. “I don't suffer assholes or fools,” says Diamandis, whose rigorous hiring process is proof of that. To fill a position, he’ll sometimes run a global contest. The winners advance to a 60- or 90-day trial period, after which, the entire team has to vote them in, meaning there must be 100 percent acceptance. “One person who's out of whack can send the whole thing careening,” he explains. “So it's really important that we operate as a team.” While he uses the Kolbe test, which assesses conative skills, Diamandis doesn’t rely heavily on testing to make his choices, preferring to use the team interview process as a major determiner. Ultimately, though, his hiring decisions boil down to one simple metric: He needs to genuinely like the candidate. “If when we're in the meeting and that person is talking, if I'm, in the back of my mind, saying, ‘I wish this guy would shut up,’ that's not a good situation. On the other hand, if we're in a meeting and I'm saying, ‘Listen, I haven't heard from you. I really want to hear your thoughts,’ that's a good situation. So I need to respect them and want to hear what they have to say.” Those same likeability and respect factors go into his selecting a co-founder or CEO. For every company Diamandis has started, he picked a co-founder or two to help him get it off the ground. Now that he has more than 20 companies, for some of them, he may step back and serve as founder and chairman and then either promote a co-founder to CEO or hire one to run the company. Moving Forward Not one to rest on his laurels, Diamandis has his hands on many projects, including a new book he’s working on with Tony Robbins. “I'm doing a lot,” he admits, “but it's all driven by passion.” As for work-life balance, for him, it doesn’t exist. “It's more about work-life integration,” he explains. “I am ‘on’ 24/7. I have two 7-year-old boys; I do my best to prioritize them, but there have been…too many days away, and so there is, for sure, the trade of time.” That trade-off is a familiar one for any entrepreneur trying to make a difference, big or small. “I know some of the more successful Silicon Valley gazillionaires,” says Diamandis, “and it's brutal sometimes. But at the end of the day, it's living a life of meaning and a life of where you get to choose how you spend your time and the dent you want to leave on this planet.” 4 Lessons Every Visionary Founder Can Learn From Peter Diamandis It’s one thing to want to build a lifestyle business, one whose sole purpose is to make enough money to support the way you live, but it’s quite another to want to build a business that changes the world. If you fall in the latter camp, here’s what you can take away from our talk with Peter Diamandis: Be true to yourself. “The most important thing you need to do as a founder of a company is know that you love what you're doing, and you're not doing it for your parents, for your friends, for your teacher, out of obligation. … You’re doing it because it is what you love doing.” Know your MTP. “What's your massively transformative purpose? What is it that keeps you going? Who do you want to be a hero to?” Think big(gest). “I teach that the world's biggest problems are the world's biggest business opportunities. If you want to become a billionaire, help a billion people.” Harness exponential technologies to help people at scale. “As an entrepreneur, you can choose to work hard 40 hours a week…and impact a hundred people, or you can work those same hours and impact a million people. It's your choice. The tools we have to impact the world are extraordinary.” Key Takeaways How Peter grew up wanting to be an astronaut, went to medical school, and managed to merge his passion for space with his knowledge of medicine. The 20+ companies he’s started, including Space Adventures, Zero-G, and XPRIZE Peter’s advice for founders The new book he’s working on with Tony Robbins How he curates an amazing team, including his rigorous vetting process How technology is taking what used to be scarce and making it abundant How he’s inspiring entrepreneurs to think bigger and change the world through his exclusive Abundance Digital community On using your “massively transformative purpose” (MTP) to drive your business forward What Peter’s MTPs are The sacrifices he’s had to make to get where he is today
Thu, 02 May 2019 - 702 - 247: Finding Your Focus as a Serial Entrepreneur, With Jake McKeon of Coconut Bowls
The Power of Focus How Jake McKeon of Coconut Bowls stopped chasing new ideas, and scaled a business and community that he’s passionate about. Jake McKeon considers himself an idea man, and that’s not always been a good thing. For years, he lept from one idea to another, always enchanted by a shiny new business possibility. With a thumb on the pulse of social trends and a knack for testing new business ideas, McKeon always had two or three ventures going at the same time. It’s common for new entrepreneurs to begin their journeys by following their ideas, imaginations, and curiosities. But McKeon was taking that to the extreme, and eventually found himself a little scattered. He needed to find a way to center himself, and ultimately that meant being grounded in his personal passions. Through some tough experiences and hard lessons, McKeon learned to mute the part of himself that saw potential in every new idea. Instead, he turned up the volume on the interests he personally cared about the most, and let that guide him to his sole venture today—Coconut Bowls. The name may sound a little funny when you put it in such a serious context. But today, Coconut Bowls is a thriving business with a charitable initiative that supports rural coconut farmers and local artisans in Vietnam and Indonesia. In the process, the company is providing people with ethical and healthy livelihoods and reducing environmental waste. Here’s how McKeon is proving that having a heart is good for business. The Creation of Coconut Bowls McKeon had already experienced a few failed startups by the time he finally connected with Coconut Bowls, but when this one took shape, it was an entirely different story. “Coconut Bowls has been the most natural of all my businesses,” McKeon says. “The product fell into my lap.” McKeon was walking through a market in Bali and came across some handcrafted coconut products. He was running a health and superfood business at the time and thought that his customers would love this simple concept—bowls made from coconuts. So, he had a bunch of bowls made, filled his suitcase, and started selling them online back home in Australia. He found that—on his shoestring budget—it was actually cheaper to fly back and forth to Bali with empty suitcases than to ship the product. McKeon ended up making a few more trips, each time bringing more and more luggage. On one trip, he brought along a couple friends and a load of empty surfboard bags. “We didn’t have any surfboard equipment, just coconut bowls. So coming back through customs was ridiculous, but they let us through, thankfully,” McKeon says. It wasn’t long after that trip when Coconut Bowls started to see sales and momentum build (and made the switch to sea freight). The Backstory But what originally brought McKeon to Bali, and to that fated market that brought him face-to-face with his most profitable business venture yet? It was a thirst for travel and healthy food—and failure. To understand McKeon’s story, let’s back up to the very first business he started, six years prior, Moodswing. Moodswing was a social networking app for sharing emotions. “I wanted to create a safe platform for peer-to-peer emotional support, for people to speak openly and honestly,” McKeon says. With no experience in business or tech, McKeon came up with the idea for Moodswing, and simply assumed people would want it. Following that assumption, he went on to spent all $40,000 of his savings—money he’d originally intended to use to travel. “Moodswing was my most outlandish business concept,” he recalls. “I was very naive at how hard the process was going to be.” McKeon hooked up with a co-founder and developed the app idea. On top of his savings, he raised another $20,000 from family and friends, increasing his overall funding to $60,000. He also put significant efforts toward marketing it and growing his user base. His growth hacking worked. In 10 weeks, Moodswing had reached a user base of 100,000 people, faster than either Instagram or Facebook had experienced early on. Moodswing’s significant and immediate growth only fueled McKeon’s naiveté. “I thought I was the next Mark Zuckerberg.” He flew to the States and met with a few investors, namely Snapchat investor Jeremy Liu. During McKeon’s pitch, Liu promptly asked about his app retention metrics, and McKeon was stumped. “I thought, ‘What are ?’” he says, laughing. It turned out that only 10 percent of those who downloaded Moodswing returned, which reflected poorly on the user experience of the app. McKeon returned to Australia, humbled. With only $20,000 left in the bank—not enough to improve on the app—he decided to pitch to an accelerator. They agreed to invest $25,000 in exchange for 10 percent of the business, but only if those friends and family who invested were no longer involved. “So I used the remaining $20,000 to pay back our friends and family members who’d invested,” McKeon says. “I didn’t want them to lose out, and it was good, because I’d never do business like that with friends and family again. I learned that lesson and got out scot-free.” McKeon and his team spent three intensive months creating a beautiful new app for Moodswing, then returned to the US to raise more money. “At this stage, Moodswing had a 60 percent retention rate, which was really good. Forty percent of users returned seven days later, and 30 percent returned 30 days later,” McKeon says. Investors essentially told McKeon that if Moodswing could get to 10,000 daily users, they’d be able to raise whatever they wanted. But the app only ever got up to 8,000 weekly active users. It was the end of the road for McKeon and Moodswing. “We just couldn't get there. We didn't have any more money,” he says. The business also started to lose McKeon’s attention. His co-founder’s, too. With Moodswing in his rearview mirror, McKeon switched gears and started an organic superfood business called SupermixME. This time he took a more traditional route, ordering a batch of products for $5,000 on his credit card, packaging them at home, selling them, and buying another batch. But things were moving too slow for him. So he took a step back and asked himself, “What am I good at?” He realized that, although Moodswing didn’t work out, he’d gained valuable insight into the world of social media marketing. He used that experience to start an agency, 7 Star Social, and quickly landed a few profitable clients. At that point, McKeon was ready to take a break. “I decided I was going to travel for six months and work online,” he says. “I didn't want to focus on growing anything.” His travels brought him to Central America, Europe, and—you guessed it—Bali. When McKeon returned, armed with a suitcase filled with coconut bowls, he started to scale his social media agency. At its peak, 7 Star Social was servicing more than 35 clients, each paying between $500 and $2,000 per month. And in the background, Coconut Bowls was growing slowly. Eventually, McKeon decided he didn’t want to work for other people anymore, so he turned his sole focus to Coconut Bowls. A Few Valuable Lessons McKeon walked away from his experiences with Moodswing, SupermixME, and 7 Star Social with much more than the idea for Coconut Bowls. “I look at my journey like an apprenticeship,” he says, one that gave him a crash course in failure and success. McKeon’s first major lesson from that time was around building a minimum viable product—a process he failed to follow when launching Moodswing. “It’s all about finding product-market fit before doing anything,” McKeon says. That can be a hard thing to define, exactly, but when you’ve got it, people will start buying and enjoying your product organically. “It shouldn’t feel like a hard sell,” he says. McKeon thought he had a good idea and spent all of his money without testing whether it was something people wanted. Looking back, he realized that he could've created a simple website or Facebook group and asked for feedback. “There are so many ways to test . It’s cheap to do and saves time and money in the long run,” McKeon says. The second major lesson he learned was to avoid doing things too fast. “Take your time. Don't expect immediate success.” With Moodswing, McKeon spent all his time getting those 100,000 users as fast as he could, but in reality, he says that businesses shouldn’t want to achieve that level of growth until they’re happy with their product. “When our users tried , didn’t like it, and deleted it, they weren’t going to give us a second chance,” McKeon says. “Focus on product first, make sure people like it, then look to marketing.” The Power of Focus and Community McKeon’s biggest takeaway, though, was about focus. He had always given more attention to new ideas than the things he was most passionate about, despite the advice he’d heard countless times from others. McKeon found that with every new business, there was always a new, more exciting idea that held more potential—hence his quick transition between Moodswing, SupermixME, and 7 Star Social. But he doesn’t recommend the same for other entrepreneurs. In his opinion, when you focus on just one business, you learn more about the product and industry, and you invest more time into talking to your customers. Over time, McKeon has found that this only strengthens your passion, or develops a new one. When it comes to Coconut Bowls, for example, McKeon has always been passionate about health, and has since become passionate about running a socially responsible business. “While I’ve always been mindful and conscious of sustainability, it’s never been a passion. But it’s been developed since I’ve fed off excitement and passion of our community.” McKeon has derived valuable learnings from his community since creating Coconut Bowls three years ago, none more so than from a live strategy session with Quest Nutrition co-founder Tom Bilyeu. The duo conducted the session on a live Foundr podcast, and McKeon walked away with some valuable lessons. “We were one year into Coconut Bowls and had some epic growth,” he recalls. “But we were chasing our tails. We didn't have a long-term strategy, a community strategy, or a brand strategy. As an avid supporter of building community, Bilyeu helped McKeon learn the value of “supporting the people who support you.” That conversation helped shape the Coconut Bowls business and influenced a lot of McKeon’s current marketing and growth strategies. One of his biggest marketing wins with Coconut Bowls has been building a customer base that markets for them. Through social media engagement, a thank-you card and follow-up email, McKeon and his team encourage customers to share on social media what they made in their bowl. “We started with this strategy and are still using this call-to-action today,” McKeon says. “We’re very lucky that our customers do our marketing for us, and it’s basically been the driver for our growth.” Another successful tactic has been creating something to do with the Coconut Bowls community. Along with his customers and other content creators, McKeon and his team came together to create a cookbook, Vegan Bowls for Vegan Souls. It’s had tens of thousands of sales to date. “We’ve had feedback from customers saying that it’s changed their lives,” McKeon said. “It’s not just a cookbook; it’s also built around having fun in the kitchen and being mindful about where your food comes from.” Eventually, McKeon sees the Coconut Bowls brand expanding, which will allow him to expand the product line and its “made-by-nature” concept. But McKeon and his team don’t only see Coconut Bowls as a brand—they view their business as a community and a collective of people who are all passionate about health, nature, and sustainability. “We share recipes with each other. We share inspiration and experiences,” McKeon says. “It really brings people together. … It almost comes back to the root of Moodswing—people who support each other.” Key Takeaways How a couple of failed ventures led to what he’s doing today The story behind how Coconut Bowls came to be McKeon’s history of testing multiple product ideas at one time The key difference between Coconut Bowls and his other ventures How he leveraged user-generated content and social media to grow The biggest lessons he learned from his previous business, Moodswing The power of focus to combat “shiny object syndrome” Where Coconut Bowls is going next, particularly with product line expansion How Coconut Bowls is fostering its community for growth The Instagram strategies he’s used that he thinks will last long term The challenges Coconut Bowls is facing, even with its success
Wed, 24 Apr 2019 - 701 - 246: Co-Founder Matthew Brimer on General Assembly’s Tremendous Growth and $412M Exit
Matthew was a guest of StartCon, Australia’s largest startup and growth conference. It was held at Randwick Racecourse in Sydney on Nov. 30 and Dec. 1. When he was young, Matthew Brimer spent his days taking apart old electronics and dreaming of space exploration. A child of the Midwest, he was raised on the belief that hard work and passion could turn even the grandest dreams into realities. As he grew older, he continued to hold tightly to this conviction, and, with the blood of two entrepreneurial parents pumping through his veins, Brimer knew he wouldn’t be stuck in his high school job selling ice cream forever. Always that tinkering kid at heart, Brimer wanted to be an inventor. And he ultimately achieved his dream, but in a way he never would have imagined while growing up. He became an inventor of businesses, of communities, of experiences. Co-founder of several brands to date, including dance party/lifestyle brand Daybreaker, VC firm The Fund, and most notably online education platform General Assembly—Brimer has developed an incredible knack for building passionate, engaged communities. Today, General Assembly has 20 campuses and more than 35,000 alumni, and Brimer serves as a mentor to members of the next generation of entrepreneurs through his role at The Fund, a New York City community of founders that he co-founded. And it all began with an old piece of furniture and a lucky break on eBay. Extracurricular Activities In 2005, during Brimer’s freshman year at Yale, he and a few buddies noticed that some of the buildings were under renovation and the university was selling the contents in the process. After perusing the items for sale, they decided to buy an antique piece of furniture to see what they could get for it on eBay. They took a couple photos of the item, posted it and hoped they could make a few extra bucks from the sale. They had purchased the piece for $50. It sold for $1,000. Minds blown, they rushed back to the buildings, bought more items and the college freshmen launched a small online business in the antique furniture space. Having caught the entrepreneurial bug, Brimer wanted to try his hand at something a little bigger—something that required more technical skill. In 2007, he and four other college students launched the website GoCrossCampus.com, an online game that turned college rivalries into a wildly popular online battle. “We made every first time founder mistake in the book. It ended up a few years later becoming a total failure,” Brimer says. “But for a while we were the largest college gaming network in the country.” He acknowledged that with too many founders and no way to generate new revenue, the project was doomed to fail, and GoCrossCampus shut the doors to its battleground in 2010. But while his first project may have ended, Brimer’s desire to create new things had only begun to grow. He graduated, moved to New York and freelanced as a web designer while he spent all his free time immersing himself in the tech space. Although the city was bursting with brilliant entrepreneurs and new, exciting ideas, Brimer soon realized that bringing them together to interact and exchange those ideas was a challenge. What if, he wondered, there was a physical building dedicated specifically to serving those in the tech space? What if there was a place where they could work alongside each other and learn while building meaningful community? With that dream in mind, Brimer, Jake Schwartz, Adam Pritzker, and Brad Hargreaves co-founded General Assembly in early 2011. Education for the 21st Century General Assembly launched as a place for coworking, education, and community, under a single membership model, and this system worked well at first. But Brimer quickly noticed that, to better serve members, a greater emphasis had to be placed on building out the educational branch of the brand. “There’s this huge skills gap between where traditional higher education leaves off and where the 21st century begins,” he says. “College education isn’t changing that much relatively speaking. But the 21st century—in terms of what employers are looking for, in terms of the talent they’re hiring, in terms of the skills you need to be effective in any industry today—that’s moving quickly.” Brimer says that a traditional university education can leave graduates in tech fields woefully unprepared for the challenges ahead, and this was the gap he hoped General Assembly could fill. So they eliminated the coworking aspect of the business and doubled down on providing quality education from stellar instructors. According to Brimer, these practical training programs on digital skills taught by actual practitioners currently working in the space were the most powerful, the most transformative thing they could provide. He wanted to equip students with valuable skills that enabled them to land a new job, upgrade their current position or pursue their passions in the digital economy. Brimer and his cofounders threw themselves into the new phase of their business, raising more capital, expanding their curriculum both online and off, and launching a new branch that offers corporate training and assessments to large companies. They also built out a credentials program and launched a philanthropic wing designed to lift up those with talent and tenacity from all socioeconomic backgrounds. With this grand expansion came a need to cement the trust consumers had in the brand. From day one, Brimer placed a significant focus on delivering measurable outcomes at General Assembly, as a way to build firm trust in the brand. He wanted to answer the question, “What can I do after experiencing this product that I couldn’t do before,” with an unequivocal answer: get a job in tech. It’s no secret that a college degree doesn’t necessarily guarantee a job after graduation, and this, Brimer feels, is a major issue right now for traditional colleges and universities. “So here you have spent all this money, all this time getting a college degree and it doesn’t guarantee you a job anymore,” he says. “The outcomes are a little nebulous.” Brimer and General Assembly wanted to provide something with more certainty. By supplying classes in coding, data, design, marketing, business, and career development, as taught by instructors with the most up-to-date information, Brimer feels that General Assembly fills the gap left by traditional education, more directly preparing students for a career in the industry. The co-founders of General Assembly also made a concerted effort to attract instructors who were not only excellent in their fields, but also who cared deeply about passing their knowledge and skills on to others. Brimer says that the best instructors at General Assembly are those who love giving back and empowering others, even if they’ve never had any teaching experience. Today, according to its website, there are more than 250 expert instructors. With an ever-evolving curriculum, and continued expansion, General Assembly is bound to continue making a splash in the tech world. Brimer began as a cofounder, later transitioned into a part-time position, and this summer he stepped into a new role as an external “evangelist for the company,” when the Adecco Group acquired the brand for $412 million. While his day-to-day work at General Assembly may have come to a close, he is still extremely passionate about what he was able to accomplish during his time there, and is excited to see what new frontiers they are able to conquer in the years to come. Brimer is no longer the kid tinkering with household electronics in Missouri, but with free time to concentrate on new ventures, he’s still dreaming big. “It would be a hilarious thing,” he says, “to explain to my 6-year-old or 8-year-old self what it is that I am, have been, and will be.” 4 Ways To Establish Trust in Your Brand When competing with major colleges and established universities, the way Matthew Brimer was when he co-founded General Assembly, it is absolutely essential to establish deep trust in the brand as quickly as possible. But all brands, not just those in the education space, have to find a way to build a bridge of trust between company and consumer to become successful. These are four of Brimer’s best tips on how to establish trust for your brand. 1. Deliver Measurable Outcomes Brimer says that one of the best possible ways to build trust in your brand is to deliver outcomes that are clear and measurable. To decide what that outcome is, he recommends asking, “What is possible for a customer after engaging with the brand or product that would have been completely unattainable before?” By nailing down the measurable outcome and then delivering it, it turns word-of-mouth references into undeniable, tangible results. 2. Celebrate Success Stories Once you’ve determined what “measurable success” for your brand looks like, it’s time to celebrate those who have achieved it! Brimer says that even prestigious colleges only gained the clout they have because of the success of their alumni. In the same way, the successes of others who have interacted with your product reflect back onto your brand. 3. Establish and Adhere to Core Values By crafting a definitive and concrete set of core values you can stand by, customers learn what they should expect from your products and services. Brimer says that by delivering on those values, you can develop an invaluable level of trust with consumers that can only come from maintaining integrity. 4. Stay Humble Brimer says that, all too often, as companies grow larger, so do the egos of the people at the top, preventing them from quickly acknowledging mistakes and accepting feedback with humility. “The more human of a relationship you can have as a company with your users, the more trust you’re going to have,” he says. “Trust goes away when it’s a faceless brand—a faceless corporate entity—interacting with live humans on the other side. That’s when things go downhill.” Key Takeaways Why we need to stop asking children what they want to be when they grow up How buying an antique piece of furniture at Yale sparked his first ecommerce business How he and his friends built the largest college gaming network in the country How General Assembly got started The philanthropic arm of General Assembly GA’s $412.5 million acquisition by Adecco Group What it’s like post-acquisition and his involvement in General Assembly GA’s hybrid approach of both online and in-person classes Why, from an employer perspective, General Assembly is a great source for talent acquisition How GA built trust in their brand in the early days What they look for in a General Assembly instructor
Wed, 17 Apr 2019 - 700 - 245: Crafting a Brand Worn by the NBA, NFL, AND Navy SEALS, With Aidan Clarke of 2XU and SA1NT
How Aidan Clarke grew global brands 2XU and Saint by prioritizing product. In a market saturated with quick, cheap fashion, building a high-quality, global apparel empire was not an easy feat—but in 13 short years, Aidan Clarke paved a way. It took a lot of dedication, but Clarke was determined to make a game-changing clothing company. Clarke decided early on that he doesn’t care about how his apparel looks, as much as he cares about its quality, and that commitment has paid off in a big way. His first and primary brand, 2XU, is based on the idea of making high-performance athletic wear, with a focus on unique, custom-engineered materials first. This approach and the resulting success would lead him to his second brand, Saint, which takes that same emphasis on materials and applies it to safety gear for motorcyclists. The funny thing is, by focusing on high-end users and materials, Clarke’s companies ended up creating products that have much broader appeal than the initial target audiences, branching out into athleisure, workwear, and potentially even streetwear for skateboarders. Through these two brands, Clarke has found a way to sell products that look good and perform well—and outfit consumers in over 60 countries. From Door-to-Door Sales to 2 Worldwide Brands Clarke got his first taste of the clothing business at just 18. As he was preparing for a school dance, he took a second glance at the neckties he and his friends were buying. A young entrepreneur’s mind started crunching numbers and realized that the fabric only cost $30 per meter, and each meter could make up to seven ties. Yet here he was shelling out almost $100 to purchase just one. “I thought, ‘Hang on, there’s a business here,’” Clarke recalls. He decided to start making his own ties and selling them door-to-door to businesses in his home of Auckland, New Zealand. Clarke’s entrepreneurial path didn’t continue in a perfectly linear fashion, a common theme we see among emerging founders. After graduation, he went to college and started a corporate career. His pushed his entrepreneurial passions to the back of his mind, but not for long. “I ironically landed back in clothing,” Clarke says. “I’d grown up around seamstresses and saw the value-add of clothing.” Clarke started his first apparel brand 2XU in Melbourne in 2005 and moved his family there soon after. He spent the following five years on a plane building 2XU into a multinational business reaching more than 60 countries. Why Melbourne? Clarke and his team had received a significant amount of startup funding, and their investor was based in Melbourne. The Australian market for 2XU was also better than in New Zealand. “We spotted an opportunity. New Zealand had lots of local sports brands, but Australia ironically didn't,” Clarke says. “We wanted to take on the big boys.” 2XU started with audacious goals. Clarke and his team wanted 2XU to be uniquely performance-focused, so they spent the entire first year developing fabrics for their apparel, before creating their product. “You can either buy fabric or focus on quality,” Clarke says. “We said, ‘Hey, we want to change the fabric.’” With millions in seed capital, they were able to spend ample time and resources on fabric development. Eventually, their warehouse became so full that they had to start selling their product. Clarke and his team did wholesale and direct sales at the same time. While most clothing brands avoid direct sales so as to not compete with wholesalers, 2XU opened its first retail store to prove they could sell premium, expensive sportswear in Australia. “Selling at our own store motivated retailers to accept products,” Clarke says. “Having our own hero shop drove demand for wholesale.” The team also visited both retail and special sports stores. Selling next to well-established international brands was difficult, but they pressed on. Their first major sale was to a now-closed triathlon store that purchased the entire 2XU line for over $3,500. Another significant sale Clarke remembers was to Rebel Sport, a major retail chain in Australia and New Zealand. “Needless to say, we had a few drinks that night,” he says, laughing. Clarke’s next step for expanding 2XU was finding ambassadors and distributors. But that wasn’t always easy. “Trusting someone with your brand is like a glorified babysitter,” Clarke says. “You have to find someone with the same passion to sell your story.” He found that the best thing about distribution is how it taps into local knowledge and expertise. The 2XU team worked hard to find passionate brand ambassadors and people to accurately represent 2XU brand in each country. In doing so, they found mostly nontraditional distributors: athletes. “It was a big risk, but passion is the right of way,” Clarke says. Over time, some distributors scaled with 2XU operations, and some were replaced by commercial operations. In the following years, 2XU celebrated two major equity events. In 2011, a local company bought 30 percent of the company. Next, the capital arm of Louis Vuitton discovered the brand and bought in at 40 percent, a significant valuation for 2XU. Since then, 2XU has scaled up and hired corporate CEOs to run the company. “The challenge we face, though, is how to still act like a small business…an underdog,” Clarke says. “We used to say, ‘By athletes, for athletes,’ but we can’t say that anymore.” But at the end of the day, the 2XU product is “still sensational.” It’s been well-received at the professional and Olympics level and is very much considered a premium brand. In the United States, it’s worn by the NBA, NFL, and even Navy Seals. In other places, 2XU apparel has become an athleisure staple. “You don’t have to be a world champion to still want quality,” Clarke says. After getting 2XU settled, Clarke pulled back and spent a “non-executive year” focused on himself and his health. One day, while riding bikes with his co-founder, he came up with what would become his next big idea—a new form of safety apparel for motorcyclists. The idea sounded simple, but as the duo dove into R&D, they realized creating this type of product would require a significant commitment. “It cost us a couple million dollars after a couple years,” Clarke says. This effort would go on to become Saint, Clarke’s second global clothing brand. Their goal was to create a single-layer safety product—ensuring a flexible, comfortable riding experience—that wouldn’t rip or tear if someone fell off their motorcycle. The global “slide time” standard for the fabric on these products (which defines the amount of time that a fabric should withstand sliding across an abrasive surface, such as pavement, before it tears) is four seconds, and they’re routinely tested in facilities equipped with spinning disks of sandpaper that replicate sliding on the street. Their first fabric lasted 3.67 seconds before ripping—just short of the standard but still much longer than any other single-layer fabric. After continual development, Clarke’s fabric now lasts almost six seconds. This single idea helped Clarke and his brand break into work clothes and other tough lifestyle applications. They’ve since patented their super-durable fabric, which involves a unique material spun into the yarn. “As for workwear, no one can do what we’ve done,” Clarke says. “It’s nice to have the IP protection.” Premium Product > Price Both of Clarke’s businesses, 2XU and Saint, lead with a premium product line. And there’s a reason for that. “People often lead with price,” Clarke says. “That’s a lazy way to sell. Product is king.” Some clothing retailers also find themselves tempted to sell their products relying on aesthetics alone, but not Clarke. “Rather than being a fashion brand, I’d rather be an authentic motorcycle brand with tough products…that also look good,” he says about Saint. Instead of encouraging people to “buy because it's cool," he always wants the dialogue to be, "buy because it's going to protect you." Through both ventures, Clarke aimed to develop a high-quality product, as he believes that is his “greatest value proposition and strong positioning” against competitors. He believes that “if you have an amazing product, you're not selling—you're just recommending.” Of course, selling your product is much easier when other people endorse it. In Clarke’s eyes, strong brands start with a great product or service, get their margins right so they’re profitable, and then create demand. “People think there’s a complexity to business, but there’s also a simplicity,” Clarke says. How can you create this demand? Clarke relates it to a “chicken and egg” situation. If you create demand before you’re ready to supply and distribute your product, you risk wasting resources because you’re essentially creating demand for competitors. On the other hand, if you develop and supply your product before the demand is there, you risk wasting resources on product that never brings in revenue. To build demand for your product, Clarke recommends doing so authentically. He and his team often attended sports events and spread the word about 2XU to one person at a time. Those early adopters and advocates would then tell friends. “It’s like a grassroots movement,” Clarke says. By targeting their market and talking to those who are passionate about what they do, they got authentically involved with communities and built trust in 2XU from the ground up. The same can be done through social communities. Clarke claims that social media, in fact, is a lot more directed. “The ability to target and generate demand is more focused than ever,” he says. “That’s what’s exciting about today.” Clarke and his team have made other exciting changes over the years. When they started 2XU, they only had an informational website. They didn’t want to compete with wholesalers through ecommerce sales. Now, ecommerce is one of their biggest and most important channels. Every business’s website is now the flagship store, at least to begin with, Clarke says. People form their judgments about your products very quickly, and you’ve got to have your website synchronized with the products you’re offering in the real world. The Future of Saint and 2XU Looking ahead, Clarke is excited for the futures of both 2XU and Saint. The brands are at different stages, but they both sell high-quality product and are both in growth mode, as Clarke calls it. His primary growth measure isn’t from a focus on sales numbers—it’s from a focus on communities. “Saint is a rocketship about to take off,” Clarke says. “It’s five times tougher than standard workwear.” The brand has even had inquiries about street fashion and safety gear for skateboarders and other action sports. As for 2XU, Clarke says that seeing more and more people discover the brand is exciting. To other entrepreneurs, Clarke encourages “passion, tenacity, resilience, and a belief in yourself.” He highly encourages those in the clothing business to focus on quality. “Cheap fashion is too hard a place to play,” he says. “It’s not unique enough.” When you have a unique space and unique selling proposition, you have a better chance of selling your product—or having it sell itself. Clarke is also adamant about using brand ambassadors to create a movement and conversation around your products or services. “The tough thing about clothing is that scalability is hard,” Clarke says. Small businesses often buy too much stock, but Clarke encourages the opposite—pay more to make fewer units and sell them up. In his opinion, it’s better to scale yourself up. Too much stock can put clothing brands in a hard place. Unlike the whiskey business, apparel product is worth less and less every year. At the end of the day, Clarke reminds brands and entrepreneurs to prepare themselves for the road ahead. “It’s a tough game,” he says. “Just believe in yourself, be resilient, and keep pushing.” Key Takeaways His first job as a teenager selling ties door-to-door Why he left his corporate career to start a business in 2005 All the leg work that went into developing a premium performance clothing brand How the internet affected his business On raising capital and how he used the funds How he and his cofounder came up with the idea for the world’s strongest single-layer denim for motorcyclists Why he focuses heavily on performance, not fashion Advice for fellow entrepreneurs entering the apparel space
Tue, 09 Apr 2019 - 699 - 244: Viral Growth and Influencer Marketing in Ecommerce, with Ben Francis of Gymshark
At 16, he began building websites. At 18, he became a regular at the gym. At 20, he started sewing and screen-printing workout apparel in his garage. By 26, when most adults are only on the cusps of their careers, Ben Francis had already launched a viral gym clothing line, served as its CEO, and stepped down in favor of a more creative role in the wildly successful company. Today, the Gymshark founder works alongside 190 staff, including the high school buddies who partnered with him to launch the brand, bringing this unmistakable apparel line to customers in more than 130 countries. And while it seems like this former pizza delivery boy magically rocketed to entrepreneurial stardom overnight (OK, he sort of did), his success can be traced back to a dedication to community building and an innate understanding of social media influencer marketing, long before it was a thing. But it all started with amateur website building, a love for fitness, and a whole lot of YouTube. Years before he was a CEO, Francis longed to make a name for himself in the fitness space. But the closest thing he had to investors were people calling to order a pizza, so establishing a clothing brand couldn’t have seemed less attainable. Not to be discouraged by limited funds, Francis and his high school friends began a workout supplement drop-shipping business and quickly realized that there was an opening in the workout apparel market. Dressing a bodybuilder and a skinny, weight-lifting newbie are two totally different jobs, especially when you’re going for form-hugging designs fit for a workout. Francis and friends, however, believed they could create a line that would be sleek, modern, and appealing to gymgoers of any body type. “And so,” Francis says, “I bought a screen printer and a sewing machine and started to make the clothes by hand.” The designs were an overnight sensation. “People were seeing the clothes, and they were so iconic and unique, that it sort of started to spread like wildfire,” Francis says. But the real secret sauce was the passion he and his friends had for YouTube. Influencing Influencers In the early 2010s, YouTube was rising fast. People passionate about everything from movies to knitting, gaming to, yes, fitness, were creating video content and building communities around shared interests. Francis and his friends were among the millions who joined online followings based on their hobbies, but stuck around for the personalities in the videos. One such fitness YouTuber who held their attention was Lex Griffin of Lex Fitness, whose channel now has over 440,000 followers. Another was Chris Lavado, whose channel has 65,000 subscribers today. Realizing they could leverage the followings of others, Francis and his friends pursued a business strategy that put them on the map, and that they still use today. They sent samples to Griffin, Lavado and other fitness YouTubers they admired, and hoped for a stamp of approval—and a video to prove it. While the term “influencer marketing” has only recently entered into the pop consciousness, the principle has been around as long as marketing. Attracting the favor of a wealthy or influential person by showering them in gifts that define a brand is as a classic move, a point Francis illustrated by sharing some history of his hometown of Birmingham, UK. For hundreds of years, the Jewellery Quarter in central Birmingham has been a hub for opulent accessories. Many jewelers open businesses in the Quarter, and the competition is fierce. But historically, there was one way to ensure that a brand’s name would be on everyone’s lips: become the first choice of royalty. Frances explained that this principle of vying for favor worked then and still works now. “They would provide a bunch of free jewelry to royalty so that people would associate that jewelry with the royalty and then hopefully back to the brand and go buy it,” he says. “It’s no different to what influencer marketing is nowadays.” “I think it’s worked forever, and as far as I’m aware, I think it’ll always work.” And so, like an ambitious jeweler in the 1700s, Francis sent off his product to curry favor with those who had the power to make his brand catch fire. And it worked. “They absolutely loved it, and they’re still with us today,” he says. “That started, I guess, what you’d now call an influencer market for us.” Today, Francis continues to leverage the audiences of athletes through an ambassador program that now includes such personalities as bodybuilder Matt Ogus, lifestyle and fitness vlogger Nikki Blackketter, and weightlifter Whitney Simmons. Because of Francis’s early success in harnessing an influencer-generated market, Gymshark has never relied on investors for capital. “We never needed investment,” he says. “So why complicate things?” Francis recognizes, though, that there was also a component of luck at work. He entered the world of social media influencer marketing when it was still a young idea, and those with followings weren’t inundated daily with products in search of a boost. “I do think it’s a hell of a lot more difficult than when we first started,” he admits. “It’s a completely different place now.” But if he were to launch a new business today, a venture he says would be a fun challenge with the vastly changed online landscape, he knows exactly where he would focus his attention. “Product is king at the end of the day,” he says. “I would focus on creating an absolutely brilliant and a gorgeous product because I think from that, it’s like a snowball effect.” He believes that by designing a remarkable, unique, and stunning product, anyone can rise above the cacophony online. “If you get someone’s attention with a genuinely brilliant product, people will wear it, people will use it, and people will talk about it.” But for now, Francis is focused on the current community he has built. Fostering Community Growing up, Francis loved attending events and expos in his hometown and dreamed of the day he would not only participate, but host his own. His belief in the power of person-to-person advertising was instilled in him as a young expo attendee and has continued to stick with him into his mid-20s. “Even though the world is becoming ever more online, and 99.9 percent of what we do is online, there is always space for that human connection, and I think that’s really, really important, and it’s a real important thing to Gymshark.” So in Gymshark’s very early days, when an opportunity to participate in an expo presented itself, Francis says that nothing could have stopped him from finding a way to join. When he reached out to one of the coordinators to find out how much it would cost to get Gymshark a spot, he was quoted a price far more than they were able to afford at the time. But as Francis likes to emphasize, he plans hyper long-term and hyper short-term and lets the rest in between work itself out. “This was 12 months in advance of the show, and I was like, ‘Right, yeah. We’ll have it. We’ll get that, and we’ll just sort of make it work,’” he says. “It was our dream to go to an event like that.” And go they did, beginning a successful string of expo appearances that were initially in the UK, but rapidly branched out internationally until, eventually, they stopped going to expos and started hosting them. “I literally think, ‘Let’s make the product that I love,’ and by default, I think other people would love, and let’s create the event that I would love to go to, and by default, I think that other people would really enjoy to go,” he says. He also says that when it comes to events, making a profit is not the immediate goal. Just like the early days spent working a screen printer in a garage, Francis’s motivation is simply a desire to create something awesome. Something he loves. “We just sort of think, ‘Right, what would we really, really love to go to? Let’s go make it happen. Let’s forget about the profit and loss at that point for that event. Let’s just go make something really, really cool.’” But rapidly gaining a dedicated following, especially when selling a physical product, has its challenges. Francis says that Gymshark’s biggest challenge at the moment is keeping up with demand, especially when YouTube influencers or expo attendees are hyping them. “We definitely made massive improvements in the last six to 12 months, but there’s still a long, long way to go,” he says. Part of the Gymshark’s effort to keep up with growth meant Francis himself coming to terms with his right role within the company. As CEO, he quickly came to realize that he was in a position that he was not suited to fill. “We were growing so fast, and the role of the CEO is very people oriented,” he says. “I’m very much an introverted person. I’m much more suited, and work better, in either a very small team or on my own where I can really dive into a project, focus on that thing and make it really special. “As we were growing bigger, it became more and more evident to me that the CEO really needs to be a lot more of a strategist and a lot more of a people person than what I am.” So Francis made the difficult decision that it would be best for him to step into the role of Chief Brand Officer instead. But the transfer of CEO power didn’t just happen overnight, which he feels helped build trust among himself and the staff. It happened over a period of about a year as Steve Hewitt, the current CEO, slowly took on more and more until he finally stepped fully into the role. Of course, passing leadership on to someone else is always a humbling and challenging process, but it’s one that Francis has come to embrace as an opportunity to become more fully himself. “I think it’s very important to be self-aware and to understand what you are good at what you’re not good at,” he says. “I’m a massive, massive believer of that.” Today, Francis has the freedom to focus on product and vision, gathering small teams together to pursue new designs and strategies for the future. So what’s next for Gymshark? Francis says that they are always pursuing innovation and are currently in the process of designing new fabrics, as well as looking to branch out of the strictly apparel space. And in an effort to keep avid followers and fans of the brand up to date, Francis has recently launched a vlog series of his own, giving a behind-the-scenes glimpse into Gymshark and into his world. In the 10 years since Francis started creating amateur websites from home, his world has utterly transformed. But many things remain the same: a love of fitness, a passion for social media, and an unbreakable bond with his high school friends turned business partners. The Gymshark brand invites each customer and avid follower to “Be a visionary.” And Francis is asking nothing of his followers that he hasn’t done himself. After all, where would Gymshark be without an enthusiastic pizza delivery boy who had the vision to buy a screen printer, and the boldness to show the world what he could create? Ben Francis’s Tips for Success Launching a brand new product on your own or starting your own business is never easy. No matter how large or small the venture, it requires vision, courage, and determination. But Ben Francis believes that there are three things any beginning entrepreneur can do to improve their chances of success. Surround Yourself With Support Francis says he was once asked to share a story about a time when he was told that he couldn’t do something. He paused to think, but his mind came up blank. “That never happened, because I never surrounded myself with those people,” he says. Starting a business is a challenge, but with the support of people who inspire and motivate you, Francis believes that mountains are reduced back into molehills. Embrace Self-Awareness Being honest with yourself and clear about who you truly are is one of Francis’s crucial steps to success. “Self-awareness is key,” he says. “I think it’s massive. You can only kid yourself for so long.” Without the ability to identify which skills you have in abundance and which you lack, you’ll be unable to build a team around you that complements your abilities and improves upon them. Play to Your Strengths Once you’ve identified your strengths and weaknesses, Francis insists on the importance of allowing them to guide your decisions. “Could I do an operational…role for a little bit? Absolutely. I’m reasonably intelligent. I could manage,” he says. “But would I be able to do it for a sustained period really, really well? Absolutely not.” Rather than forcing yourself to be something you’re not, Francis encourages all entrepreneurs to be honest about their strengths and find ways to play to them, even if that means relinquishing, as he did, the title of CEO. Key Takeaways How interests in building websites, going to the gym, and sewing and screen printing combined to help him launch a wildly successful business How connecting with YouTube influencers helped Gymshark take off On using events to build community The biggest challenge Gymshark faces right now Why Ben traded the role of CEO for Chief Brand Officer On separating personal brand from company brand Why Gymshark has never taken investments What he would do if he were to start a totally new ecommerce brand today What his personal life is like now that he’s a successful business owner What’s next for Gymshark
Wed, 03 Apr 2019 - 698 - 242: How Tony Fernandes Bought an Airline for Under $1 and Made it a Leading Carrier
Tony Fernandes has worn many hats over the course of his decades-long career. And if the Group CEO of AirAsia (and former host of The Apprentice Asia) ever finds himself dissatisfied with a signature look, he’ll just invent a new one. “You have to keep renewing yourself,” Fernandes says. “You’re only as good as tomorrow.” That philosophy undergirds Fernandes’s entire career trajectory. Before starting what is now one of the world’s most successful budget airlines, Fernandes was an accountant, working briefly for the likes of Virgin Atlantic and Virgin Communications. He then reinvented himself within the music business, where he served as a Warner Music executive in Malaysia. Fernandes’s latest reinvention is his biggest, and most complex. He’s the co-founder and Chairman of Tune Group, a conglomerate of hotel, automotive, financial services, education, media, and telecommunications industries subsidiaries. And he sits at the helm of AirAsia, a budget, no-frills airline that has revolutionized travel in Southeast Asia. After purchasing the then-bankrupt airline for a shocking 24 U.S. cents, Fernandes has grown the brand to a net worth of more than $1.5 billion. AirAsia is now the fourth-largest airline in Asia, behind only the big Chinese carriers (in 2017, AirAsia flew over 90 million passengers), and it recently embarked on an ambitious program that will see the airline transform itself into a travel technology company. To hear Fernandes tell it, two primary factors differentiate AirAsia from other companies. For starters, the company has always embraced digitization. And secondly, the organization is built on inclusivity and creating a fantastic work culture. Here’s how Fernandes has leveraged those strengths to build a company that no one thought possible. Pursuing a Childhood Dream In 2001, during Fernandes’s more than decade-long stint in the music business, digital advancements began to threaten deeply entrenched industry norms. Fernandes spotted an opportunity, but his colleagues weren’t so keen on the digital revolution. “Napster had come along and Spotify was just starting, and I thought, ‘Wow, this is super exciting for the music industry,’” Fernandes says. “But I was a lone voice.” No one at Warner Music or Time Warner Inc. (where Fernandes was working at the time) thought it was a good idea. “They thought the internet would destroy music,” Fernandes says. “My premise was that we can’t hold technology back and that this was a fantastic distribution model to create more revenue.” But his vision didn’t gain traction, and when Time Warner merged with AOL, he decided to bid adieu to his music industry career. He was sitting in a bar in London, trying to figure out what to do next with his life, when he saw mention of the budget airline easyJet on the pub’s TV. Fernandes instantly recalled his childhood love of planes. “Always from a very young age, I’d told my dad, ‘I’m gonna own an airline one day,’” he says. “That’s one of those things you say, but you’re not entirely sure you’re gonna do. But I always said it. And so I thought, ‘Well, this could be the time.’” It might seem like a bold move for a music industry exec to presume he could run an airline, but Fernandes was motivated by one simple premise: YOLO. “I thought… ‘You only live once,’” he says. “If I fail, I fail. It’s okay. I’ll go get a job doing something else. But I don’t want to sit there at 55 and say, ‘I wish I did it.’” Fernandes’s idea gained further traction after he started studying the models of low-cost airlines such as RyanAir. (RyanAir’s then-Director of Group Operations would later become a shareholder of Fernandes’s airline.) Inspired by what he refers to as an “amazing concept,” Fernandes gathered up some partners and returned to Malaysia for a meeting with the Prime Minister. The Prime Minister agreed to let Fernandes and his partners into the airline industry, but only if they purchased an existing airline. As a result of some devastating circumstances, there were a lot of opportunities. Fernandes was looking to purchase an airline around the time of the September 11, 2001 terrorist attacks, which had sent the industry reeling. He ended up purchasing AirAsia, a Malaysian government-owned airline that was $11 million in debt, for a grand total of 24 U.S. cents. Driving Growth After purchasing AirAsia, Fernandes knew he had to move fast. “It was very clear to me once we started moving that…I was going to put the foot to the accelerator because there were some big around me,” Fernandes says. “When you have something, scaling up is important.” Luckily, Fernandes spotted multiple avenues for growth. For starters, he knew that at the time he acquired AirAsia, only 6 percent of Malaysians flew. If he could capture even a portion of the other 94 percent, he’d be in business. What’s more, he was willing to fly to places that most airlines didn’t go. “A lot of our growth has come from destinations that no one did before,” he says. But perhaps AirAsia’s biggest differentiator was its use of the internet at a time when, globally, many still weren’t online. “Back in 2001, most people didn’t even have internet yet,” Fernandes says. “But I said, ‘Trust me, when I put a fare at 2 dollars, people are going to find their way to the internet.’” Since then, AirAsia has been religious about tracking and keeping data. So when huge brands started to embrace digitization many years later, they were already ahead of the game. Still, Fernandes knew he was at a disadvantage, due to his lack of industry knowledge, so he accelerated his learning to ensure he could continue AirAsia’s rapid growth. He sat down with engineers, pilots, simulators, and cabin crews; learned how to change a wheel; and generally threw himself into understanding the intricate workings of planes and airlines. “I was a sponge,” Fernandes says. “I took everything in.” A strong focus on innovation, learning, and growth helped Fernandes and his team make up for what they lacked in capital. “Let’s be real, three guys from the music business coming in to start an airline is not the most convincing business ,” Fernandes says. “No bank gave me a cup of coffee. Did we want capital? Of course. But we didn’t have it. But again…we built a massive airline with very little capital.” In fact, AirAsia only raised one round—$30 million around year three—before launching its initial public offering (IPO). “I’m old-fashioned in that aspect,” Fernandes says. “I believe in cash. I believe in making some profit. If you have a model where you can make money, make money. And of course reinvest some of that money, which we did.” Much of that money went into flying to new places. “The product was going places that no one else wanted to go,” Fernandes says. “We couldn’t stand still… kept adding routes and new destinations.” While the airline continues to add new destinations, today it’s equally focused on developing a multi-pronged digital strategy. The organization is digitizing all of its processes to enhance efficiency and the customer experience. It’s also attempting to create a comprehensive travel ecosystem that will enable users to book train tickets, purchase concert or other event tickets, use financial services, and so on, all from one central hub. “We’re using and building platforms that will provide more value to my customers…and it’s an exciting vision,” Fernandes says. “There’s a huge potential if we can execute well.” That execution hinges on a top-notch team working cohesively and effectively. Luckily, Fernandes has been building that since day one. Building a Dynamite Culture “Culture is, I think, the most important thing in the success of AirAsia,” Fernandes says. Fundamental to that culture is a bedrock of transparency and trust—even among 24,000 staff. “It is by complete choice that we’re open plan,” Fernandes says. “When you have an office, you have all these invisible walls. … So one day I just came in and smashed all the offices. I brought a contractor in and just tore them all down. And we’ve been open-plan ever since.” In keeping with the open office concept, AirAsia also employs a fairly flat organizational structure. “I like to think we utilize everyone’s brain,” Fernandes says. “We put everyone…in the same building. Everyone eats in the same place, everyone goes to the same gym. I want people who believe they can do a lot more and grow in this company.” This spirit of inclusivity extends to diversity. “We embrace diversity,” Fernandes says. “We don’t care what race, creed, color, sexual orientation you are. And I think that’s a strength. Because that gives us a huge diversity in our workplace, and a huge ability to attract great talent and great ideas. … I wanna have a fantastic, multi-ethnic, diverse company, and I think we’re not far from that.” Of course, when you’re dealing with a team of 24,000 people, it’s easy for bureaucracy to rear its ugly head. “We got big, and politics and bureaucracy creep in,” Fernandes says. “But it’s not something I’m gonna run away from. I confront it because bureaucracy and politics is the cancer of any organization” One strategy the team uses to confront bureaucracy is simply having fun. “I think too many business leaders take life too seriously,” Fernandes says. “Too many entrepreneurs get too stressed. Have a balance. You don’t have to work 18 hours a day. Make sure you give time to your family and your kids and your friends.” In Fernandes’s view, this juggling act is worth it in pursuit of building a great team. “You’ve gotta surround yourself with good people, and you’ve gotta be prepared to listen,” he says. “Too many founder CEOs think they know it all. … You can have all the ideas you want in the world, but the execution is what it’s about, and you need a good team.” Luckily, developing a great team has always been fundamental to Fernandes’s vision for AirAsia. “My vision was to create a great place to work—a fair place to work, where it didn’t matter whether you…had money or a great education, but if you had a great brain and you had the will and belief, you could achieve anything in this airline,” he says. “To turn a raw diamond into a diamond—and we have so many of those. … If you really push me, it’s allowing a lot of my staff to live their dreams—that would be something I’d be most proud about.” That spirit of affirmation and inclusivity extends from AirAsia’s team members to its customers. In spite of the many ways that Fernandes and his airline have reinvented themselves over the years, the company’s slogan has remained the same since Fernandes first developed his vision all those years ago: Now everyone can fly. 5 Mini-Lessons in Entrepreneurship from Tony Fernandes Spend Money on Branding and PR “Great ideas are great ideas…only people know about them,” Fernandes says. “Too many businesses don’t spend enough on branding and marketing. Keep a budget for that.” Always Be Reinventing “The world is littered with products that didn’t reinvent themselves,” Fernandes says. For example, he references Nokia. “Who believe a world without Nokia phones? They were it.” Today, of course, the phone landscape is very different. Balance Focus With Innovation. “You have to live within your means and live within your resources,” Fernandes concedes. “But you also can’t stand still. It’s a balance. But life is a balance. Everything you do is a balance.” Don’t Worry so Much About Failure “Failure doesn’t worry me, because I’d rather fail than not try at all,” Fernandes says. “Many people are too worried about failing, so they don’t do anything. I’ve had many failures… I don’t have any regrets, because if I didn’t try I didn’t know.” Go With Your Gut “You can do all the marketing research you want,” Fernandes says. “You just gotta go with your heart sometimes and do it.” Key Takeaways Tony’s background in the music industry and how he wound up interested in airlines The wild story behind how he purchased AirAsia for 30 Australian cents The fundamental growth strategies he used on AirAsia His thoughts on funding AirAsia’s digital strategy On expanding your product line and trusting your gut AirAsia’s culture and why he thinks it’s the single most important factor in their success His advice on building a founding team How he came to host The Apprentice Asia His thoughts on personal branding as a CEO or founder How he views failure
Thu, 21 Mar 2019 - 697 - 241: Mastering Behavior-Based Email Marketing, with Jimmy Kim of Sendlane
Life in the Fast Lane From washing cars, to selling them, to building businesses, Sendlane CEO Jimmy Kim credits focus as the key to his rise to the top. Like many children of Asian-American immigrants, Jimmy Kim knew his parents had high expectations for him. When he was a child, his mom told him that he needed to become a doctor because that would make him the most money. “I don’t wanna be a doctor,” the young Kim replied. “I’m gonna make more money than a doctor.” Fast forward to 2018, and Kim is making good on that promise to his parents, as an entrepreneur working in online marketing. He’s built and sold multiple companies, and now sits at the helm of the fast-growing email marketing software Sendlane. The bootstrapped company employs 25 full-time employees in its newly remodeled, 6,000-square-foot office in San Diego. As of May, Sendlane had already more than doubled its revenue over 2017 and was on track to triple or even quadruple that number by the end of the year. How did he get here? Kim attributes his success to one thing: focus. From Washing Cars to Building Businesses At 15, Kim was entirely focused on one goal: saving up enough money to buy a car. He started working 10 hours a week making pizzas at a local shop. But earning $4 an hour made saving enough money difficult. “When I turned 16 and I got my driver’s license,” Kim recalls, “I still couldn't afford a car because, well, I came from a middle-class, first-generation Asian family, and my dad's not going to buy me a car. I mean, it didn't matter what my grades were at that point.” He figured the next best thing to owning a car was working with cars, so he got a job washing cars at a dealership. “That was my solution,” he says. “That was my first mindset: ‘Okay, let me go at least get to drive cars.’” Kim worked at the dealership until he went off to college. During summer break, he returned and asked for his old job back, but they said the positions had been filled. He felt defeated. But as he walked out of the office, one of the salespeople spotted him and asked him a question that would change the trajectory of his career: Why don’t you try selling cars? Thanks to his excellent work ethic in the past, the manager hired him on the spot. During Kim’s first month, he sold 31 cars, made $14,000, and became salesman of the month, at the age of 19. Some brushed it off as beginner’s luck. “That just fuels the fire in me,” Kim says. “That's how I am. I'm a competitive person.” His second month, Kim made even more money and, again, was named salesman of the month. That’s when he decided to make the difficult decision to drop out of college. “Now, as an Asian growing up in an Asian family, it was probably the hardest conversation that I ever had with my family,” Kim says. “My parents did not approve. They thought I was crazy. They thought I was wasting my life, ruining my life.” As a compromise, he agreed that after a couple of years of making money, he’d go back to school and fund his own education. After that conversation, Kim went full time at the dealership and was doing well, but being the ambitious kid that he was, he felt he could do even better. He noticed a finance position opened up at the dealership, and he was drawn to the challenge of selling intangible goods—life insurance, car insurance, paint protection, etc. “I wanted to be that guy to sell that intangible because I thought it was really fun to take it to the next level.” Excited by the possibility, he asked if he could take the finance position. The manager said he would need to speak with the general manager, and a couple days later, came back to Kim and said the position had already been filled. “The anger inside of me actually grew at that point,” he says, “which, I'm not an angry guy at all, but for some reason, I just felt like he was lying.” Infuriated, Kim marched up to the general manager’s office (“It's totally disrespectful. I should have never have done that.”), and told him he couldn’t stand the place and he was quitting. A month later, he got a call from the owner of the company, inviting him to come back and talk it out. Kim shared his aspirations with the owner, and eventually, was sent to a finance class where he obtained his certifications and earned his coveted spot in the dealership’s finance department, where he eventually worked his way up to finance director. At 25 years old, Kim became general manager of a Saturn dealership, and under his oversight, it became one of the top 10 Saturn dealerships in the nation. The End of an Era, the Start of an Empire In 2009, General Motors, which owned Saturn, filed for bankruptcy, forcing Kim to make his next move. “It was kinda sad,” he recalls. “I remember that bittersweet moment that it was the end of that realm.” With GM going under, some people wanted to reopen the Saturn dealerships as Kia stores instead. They asked Kim if he’d be interested in helping, and he agreed to help them get started, but set a hard date for when he would leave the auto industry. “I realized that this isn't what I wanted to do for the rest of my life.” Kim wasn’t entirely sure what he did want to do, but he had a friend, Anik Singal, who had an internet marketing company, and he’d always been curious about what he was doing. So he approached him and said, “Look, I don't know what's going on as far as what you actually do in business, but there's one thing I'm really good at—I can sell stuff and I'm really good at operations.” The timing was perfect. At that point, Singal’s company had more than $1 million in debt and needed help. The two friends worked out an agreement. Kim would help the company get out of debt, but in exchange, Singal would teach Kim everything he knew. As soon as the company was out of debt, Kim would move on. And just like that, Kim went from making around $250,000 to $300,000 a year at the dealership to about $80,000 a year at the internet marketing company. But remember, for Kim, it’s all about focus, and he had a plan. By 2013, after delivering on his promise to get Singal’s company out of debt, Kim transitioned to the next phase of his career by starting his own internet marketing company, JK Marketing. In 2016, he estimates that business brought in $4.5 million in revenue. From Side Hustle to Full-Fledged Business While Kim was running his internet marketing company, he and his team developed an in-house solution to their email marketing woes: Sendlane. “We never intended it to be anything else but for us,” he says. “That was the number one thing: We built it for us. It was a platform. It was ugly. It was purposeful. That was all we built it for.” But by 2014, friends and clients alike began asking Kim where they could find out more about Sendlane. The problem was, they couldn't. All that existed was a login page for Kim’s company to use to access the app. So in 2015, he and his team decided to open the doors to the public and see what happened. They put up a simple webpage with a payment portal—and people started signing up. From 2015 to 2017, they ran it passively. In its first year, Sendlane reached $40,000 to $50,000 in monthly recurring revenue. By 2016, it climbed to $80,000 to $90,000 a month. So there Kim was, juggling his internet marketing company, a growing side business, and on top of that, a clothing store in Las Vegas. But in August 2017, a life event changed everything for him. His daughter was born. “The moment I saw her I realized that I needed to find more time in my life,” he says. “Yet I knew that I couldn't slow down business because I love business too much. So I had to find a good balance.” To do that, Kim decided to sell most of his companies and revive his favorite tactic—focus. He would pour his energy into one company only, and it would be Sendlane. “I took that hard look,” he says. “I looked at the companies and I was like, ‘You know, this is the company that I can see incredible legs, and I know we haven't focused on it, but look what we did without even focusing on it. What can we do by simply focusing on it?” That was in August 2017. From September 2017 to May 2018, Sendlane grew an average of 10 percent, month over month. Bootstrapping Versus Raising Capital That age-old question. So far, Sendlane has been 100 percent bootstrapped, but Kim says he will be raising capital to the tune of $5 million later this fall. “Bootstrapping is great and it's a way of life, of course, and I totally respect it, and I think that it's been a great journey for me.” But as someone once explained it to Kim, you can own 33 percent of a $30 million bootstrapped company, or you can own 20 percent of a $100 million VC-funded company. “Being bootstrapped, you're always going to slow yourself down because of revenue and money,” Kim explains. “But when you have a large infusion of money, it becomes a different mindset because now all you're focused on is growth and not the money.” And what would Kim do with an infusion of $5 million? He says he plans to spend the majority of the funding on growth, such as media buying and salespeople, keeping a close eye on getting an ROI as fast as possible. The One Thing Your Email Marketing Needs While we had his attention, of course we had to ask Kim to share some of his email marketing knowledge. The first thing Kim wants people to know, though, is that you can’t use outdated tactics and expect awesome results. “People are still trying to do what worked in email marketing in 2008, in 2018,” he says. “People don't recognize things have changed so dramatically. … People are just getting a heck of a lot more emails every day.” In fact, a whopping 269 billion emails are sent each day, according to a 2017 report by research firm The Radicati Group. So how can you stand out in a crowded inbox? Kim recommends behavior-based automation. Using your email marketing platform, create emails based on actions a user took (or didn’t take). Did they open your emails? Did they buy anything? What kinds of actions have they taken in the past? For example, if a subscriber isn’t opening any of your emails, it may be time to get more aggressive. On the other hand, if a subscriber is opening all of your emails but hasn’t made a purchase, that tells you they’re highly engaged, but for whatever reason, they’re not buying. It may be time to move that subscriber into a separate email funnel that pushes them to make a purchase. “Creating that personalized experience is, bar none, the best way to make people want to actually listen to you and want to open your emails,” Kim says. “That's email automation and that's the best way you can do it now, in 2018, and forward.” This level of personalization can be achieved with email marketing software that allows tagging, revenue tracking, and “if this, then that” statements. “Things like that you can do with email, you can do with Sendlane of course, but you can do it with most email platforms that are more advanced thinking.” What’s Next for Sendlane and Jimmy Kim? Aside from raising a round of funding later this year, Kim has an entire roadmap for Sendlane that he wants to continue to implement. “I'm not going to tell you that I'm not going to ever sell the company,” he says, “because if someone offers me enough money, I'm going to sell the company, and I'm going to move on to the next project. But the coolest thing about that is, being the owner or founder, you don't have to worry about that if you just put your heart and soul into it.” Kim also wants to put more time into sharing nearly a decade’s worth of his digital marketing knowledge. He plans to get more into vlogging; he’s already started a YouTube channel where he shares tips on anything from Facebook ads to affiliate marketing. And a recent project he’s particularly proud of is the Advanced Email Marketing course he put together in collaboration with Foundr. “It's always been kind of a small passion of mine to share this information,” he says. “Whenever comes out, that's something you should be looking for.” Kim’s 4 Tips for Founders It’s better to be really good at one thing than mediocre at 100 things. “Too many companies try to do too many things,” Kim says. “But if you're really good at three things, you're much better of a company or product than you are if you can do a hundred things but do them at half ass and mediocre.” Make decisions as quickly as possible. If you, like many founders, are struggling with indecision, take Kim’s approach and go with your gut. “One of the biggest failures of most entrepreneurs is they get stuck on decisions so much. They take days, weeks, years, thinking about decisions, how to do this, what to do, how to start, whatever it is. I think the biggest thing as an entrepreneur is kind of following your gut and making that decision as fast as possible.” And Kim reminds us: “The worst thing you can do is fail.” And while many people fear failure, it can teach you what you need to learn. You are replaceable. Like many entrepreneurs, Kim used to think it was better to do some things himself rather than train someone else to do it. “I'd sit there and I’d think, ‘Oh, I can do these tasks the best. I'll never find someone to replace me.’ Well, I find out really quickly lately—I've been humbled a lot in the last couple years especially—I realized there's a lot of people that are much better than me at most of the things that I do.” So instead of trying to do everything himself, Kim invests in top talent to grow his business. Great talent is worth the extra money. When hiring new team members, it’s best not to be too stingy when it comes to salary. Realize it’s an investment in the future growth of your company.“You focus on that talent, and the money comes with the talent, and money comes with what they're building. … I know how, especially in the early-stage companies, it's really tough when you're hiring people to make things work, but when you chose the life of being an entrepreneur or a founder, well, you kind of chose the life of being poor at some times and being broke at some times, and struggling sometimes. … That's all fine and dandy, you've got to get through that part.”After hiring people and spending months training them only to find out they weren’t good at the position, Kim decided to spend more money to get the best people possible. He says it’s made a world of difference. NEW COURSE ALERT: Want to learn advanced email marketing secrets from the cofounder of Sendlane? In our latest course, Jimmy Kim is sharing all the knowledge he’s learned to help you transform your email list into a money-making MACHINE. In Advanced Email Marketing, you’ll learn: A step-by-step automation blueprint for making sales while you sleep. If you have an online business, this is GOLD for you! The proven, 3-part “cookie system” that will make your subscribers look forward to your emails The 50/50 “spam formula”—this one’s your ticket to escaping the dreaded “Promotions” tab! The 3-second hack that increases opens and builds connections The rest of Jimmy’s 10-year brain dump of in-the-trenches email marketing expertise To be the first to know when Advanced Email Marketing is open, >>click here to join the VIP waitlist!
Wed, 13 Mar 2019 - 696 - 238: Juggling Multiple Projects and Knowing When to Step Away, With Grasshopper Founder David Hauser
David Hauser’s life changed forever the moment he taught himself how to code. Like so many other nascent entrepreneurs, the power of computer programming set him on a lifelong path as a tinkerer, always fine-tuning and building in an effort to shape his and others’ futures. In much the same way Hauser learned how to code, his entire entrepreneurial journey has been one of unrelenting trial and error, involving a mix of success, failure, and personal and professional evolution. With the creation of tech companies like Grasshopper and Chargify, Hauser used his talents and curiosity to shape his own destiny, and make a splash in the startup world. Now, in his latest endeavor, he’s directed that very sense of experimentation to the field of health and fitness, with an upcoming book documenting his extensive adventures in improving his own physical well-being. But it all started with a few lines of code that enabled him to pursue a nontraditional professional life. “I always worked for myself since before high school,” Hauser says. “I never had a traditional job.” In the late 1990s, the internet was gaining unstoppable momentum, and as websites started to become viable means of doing business, the demand for web designers and ad creators increased dramatically. This shift granted new opportunities to clever teens on the cutting edge of new technology who wanted to make a few bucks (and sometimes much, much more) from the comfort of their childhood bedrooms. Hauser, who has no formal tech training, was one of these teens, swiftly making his way into the world of banner ad management and creating his own company WebAds360. “From there, I started grabbing onto different things, learning different technologies, working with other people,” he says. “But it all started with web design.” Before graduating college, he founded a second company, called ReturnPath, to help businesses that used permission-based email lists to keep their addresses up to date as subscribers graduated college or changed jobs. Being a teenage entrepreneur in the late 1990s and early 2000s presented some major limitations, however. For one, what phone number were prospective clients supposed to call? Cell phones of the time were still extremely basic and lacking features like putting a caller on hold or setting up a conference call. Meanwhile, home landlines might be answered by baffled family members. Neither option exactly screamed professionalism. It wasn’t just a problem for young people working at home, either, as lots of scrappy new entrepreneurs were lacking dedicated business phones. So when the born and raised New Yorker headed off to Babson College in Massachusetts, and met Siamak Taghaddos, another entrepreneur with a similar problem, they put their heads together to pursue a solution. Leaping Toward Success “It started with a really simple idea,” Hauser says. All they wanted was a way for tiny companies, startups, and solopreneurs to have the phone presence of a large, established company. And when neither he nor Taghaddos could find an existing solution to their problem, they did what so many successful entrepreneurs end up doing. They built their own solution. Because they were only out to solve a problem for their existing businesses, Hauser admits they didn’t spend a lot of time on research or planning. “It wasn’t well-researched necessarily, beyond the fact that we knew we had a problem, and we thought that we could solve it,” Hauser says. During the process of creating the solution to their own problem, they realized that they were really onto something. That maybe this was going to be much bigger than a new tool for their own tool belts. And because he and Taghaddos had their fingers in a lot of pies, and the money flowing in from their existing projects was enough to fund their new endeavor, they never needed to request outside funding. In 2003, the pair officially launched Grasshopper, a service that enabled small businesses to present themselves like big businesses using just a cell phone, complete with extensions, customizable greetings, and simultaneous call handling. Before long, Hauser shut down all of his other businesses, including WebAds360, and decided to focus entirely on the management and growth of Grasshopper. And business boomed. Small businesses and startups flocked to the service, delighted that it enabled them to operate with the professionalism of a well-established corporation. The company continued to grow for the next six years, when Hauser decided it was time to relinquish his role of CTO. “I was always relatively technical,” he says. “But I am definitely not a top programmer, and as we really started to build out the company, it was clear that we needed to have better leadership from a technical perspective, and I could apply my talents better elsewhere.” So, Hauser moved through another phase in his evolution as an entrepreneur and broadened his scope. “Rather than being just focused on the technology side, I spent a lot more time in company culture, HR, hiring, process, goals and how we implemented those,” he says. “I shifted my focus.” And as he stepped back, looking at Grasshopper from all angles, he saw possibility everywhere. Trial and Error Even though Grasshopper was a big success, Hauser’s head was bursting with new ideas and new problems to be solved. In 2009, he developed Chargify for streamlined recurring billing. Then in 2010, he created PackageFox, a way to secure guaranteed refunds from late or lost packages shipped through FedEx or UPS. And in 2011, he launched PopSurvey, a graphical survey creator. These are just a few of the self-funded side businesses born out of Grasshopper, and Hauser says there are many more that aren’t resume-worthy or that never saw the light of day. “Those are probably just the ones that became something,” he says. “There are tons of others that failed and never really got very far, or failed horribly bad and we lost a lot of money.” PopSurvey eventually fizzled out, overcome by competitors. PackageFox was an opportunity for Hauser to learn more about automation, but he eventually sold it off to someone in the space who could make better use of it. Hauser kept Chargify longer than either of the other two, but recently sold it, as well. And while Hauser learned much during this time of exploration and creation, he admits that it created a lot of tension within his team at Grasshopper. “We thought maybe we couldn’t keep growing Grasshopper, and we started all these things, and wasted a tremendous amount of time and money, but more importantly distracted ourselves—and even worse, probably, distracted the team—from the thing that was growing well. We could have just doubled down,” he says. “The success would have been much better than if we had wasted all that time, but that was the blind spot we had, and luckily we realized it.” Hauser says that internal blind spots are some of the most difficult challenges that founders face. While an entrepreneur is wrapped up in the excitement of a new creation, he says it can be nearly impossible to determine impartially whether or not that is the best possible use of time. “We’re overly invested in something, and we have that blind spot to maybe this isn’t the right thing to be working on right now,” he says. But whether by choice or by force, the decision to take the left fork instead of the right is eventually made. “I think sometimes it happens naturally. That progression just happens and you kind of see it,” he says. The problem is that sometimes it takes too long, and we over-invest in something that’s not productive, taking time away from something that has a much brighter future. And while he is thankful that the ultimate effect this period of distraction had on Grasshopper was minimal, he would have done things differently given the opportunity. “Looking back on it, it was not the best choice,” he says. “We should have focused on Grasshopper and grown Grasshopper.” But despite any amount of distraction, Grasshopper grew and grew until the company was raking in $30 million in annual revenue. Before long, the success of Grasshopper drew the attention of hungry eyes, and the acquisition calls started pouring in. Sales and Farewells “When we started the company, we had no exit plan,” Hauser says. “Our goal was to build a company we loved being at and loved doing what we were doing. That was it.” So when the first of the interested buyers knocked, Hauser turned them away empty-handed. But as Grasshopper was a privately funded company, without the limitations placed on it by investors and capital, interested buyers were not to be discouraged. Eventually, Citrix, a multinational software company, made them an offer that they couldn’t ignore. Citrix said that Grasshopper could retain their brand name, keep the team together and continue growing the company. Over the course of a year, Citrix worked with Hauser and Taghaddos until they recognized that this proposal was a great fit for everyone involved. So they decided to sign on the dotted line. As soon as the sale was finalized in 2015, both Hauser and Taghaddos bid their greatest success farewell, something Hauser describes as being “very emotionally difficult” but “best for both the company and Citrix.” He trusted the management team to keep steering the ship in the right direction, and with Citrix’s new ideas for growth and strategy, he knew the business was in good hands. Neither he nor his partner were interested in sticking around for “two more positions for highly paid executives with titles that are kind of meaningless in a big public company.” While he knew he had made the right decision, Hauser was rocked by the impact of his choice. “All of a sudden, your email address changes, your phone number, your identity,” he says. “For 12 years, I was the guy involved in Grasshopper, and I ran Grasshopper. That’s who I identified with and people identified me with, and that just changed overnight.” For a year after stepping away from Grasshopper, he continued with Chargify, but in July 2016, he sold that business, too. With a clean slate, Hauser stepped into his next phase of evolution. He explains that the core purpose of Grasshopper was to empower entrepreneurs to succeed. Now, he’s just hopped into a larger field. “After a year, I came back to and found my core purpose,” he says, “and that’s empowering others.” The Pursuit of Health It’s been two years since Hauser’s life changed with the sale of his two most successful brands, and he spent the latter half of that time on an exciting new project: himself. “I really wanted to change my life, and that included changing my exercise and diet, and I went from doing extreme endurance sports to practicing yoga six days a week,” he says. “Like massive change.” In pursuit of this change, he also took just about every test imaginable—blood tests, stool tests, sleep tests, DNA tests and more. All in the pursuit of a healthier life. And now he is ready to share what he has learned. Thirty pounds lighter, Hauser is releasing a book in 2019 called Evolve: Optimize Your Life, Body and Mind. In it, he busts myths around fad dieting, trendy workouts, and quick fixes, sharing instead the methodology he used to transform his own life. He also tackles many of the health sacrifices entrepreneurs make while chasing lofty goals. And despite all the changes he tried in his own life, he isn’t necessarily an advocate of massive life shifts or hours spent in the gym. He believes that often the little choices can make the most impact. “It’s always easier to work an extra hour past midnight because no one is bothering you, right?” he says. “It’s easy to pick up the phone and call for pizza, because you know you get that instant boost and gratification and can continue working for an extra hour. But I think, at the end of the day, what I care about is output and productivity, and I don’t think there is very much value in that extra hour of work when it is low productivity and low value, and it is just work for work’s sake.” Through his book, Hauser hopes to open the eyes of founders and non-founders alike to the power they have over their own lives and the small adjustments they can make that will bring huge impact. “The idea with the book is allowing people to understand that their life is a self-experiment and doing little things like maybe just buying a new pillow for your bed…could have massive gains,” he says. “Each thing in your life is an experiment, because you’re different from everyone else.” Once again, just as he did as a teenager learning to code, Hauser is relying on the power of trial and error—how the slightest adjustment, addition, or subtraction can make a big difference. He is, yet again, learning to crack the code, and yet again, hopes it can change lives. David Hauser’s Tips For Living A Healthier Life Since founding, building and selling Grasshopper, David Hauser has invested much of his time in pursuit of a healthier life. In 2019, he is releasing a book on the subject, “Evolve: Optimize Your Life, Body and Mind,” and these are just a few of the tips held inside for entrepreneurs pursuing a healthier lifestyle. For more information on the upcoming book, and a free chapter on the impacts of coffee, visit www.evolvebook.com. Establish a Routine “I am a huge believer in routine,” Hauser says. “If you talk to the most successful people in the world, most of them will tell you routine is very important.” He is such a strong believer in routine that, even when he doesn’t plan to work out, he still goes to the gym because it’s on his schedule. By developing a routine that allows for more movement, more stability, and more sleep, he thinks entrepreneurs can improve their lives—as well as their businesses—in enormous ways. Sleep More “As founders, understanding our sleep patterns—improving our sleep patterns—I think has tremendous effects and gains on our productivity the next day, the next week, the next year that we don’t realize,” Hauser says. By making more time for sleep, and being unwilling to compromise that time for a little extra work at the end of the day, he believes that entrepreneurs will actually be far more productive. Entering into each new day refreshed improves mood, interaction, and problem solving—all areas that are vital for success. Experiment “Life is a self-experiment and doing little things like maybe just buying a new pillow for your bed…could have massive gains,” Hauser says. “Each thing in your life is an experiment, because you’re different from everyone else.” Even the smallest changes can make a massive impact, and what works for others may not necessarily be the best choice for you. By trying new ways to solving old, persistent problems, he believes people can make great impacts on their health, and what is more entrepreneurial than that? Key Takeaways The first company he started (in high school!) The Grasshopper origin story Entrepreneurial blind spots and distractions Why Hauser stepped down as CTO at Grasshopper Chargify, PopSurvey, PackageFox, and the other companies he’s started The story behind Citrix acquiring Grasshopper What Hauser did after stepping away from Grasshopper, and the emotional side of selling the company Pooling customer service for different products you’re building Marketing strategies they used to grow Chargify faster Hauser’s new book and new projects How to keep yourself healthy while working hard
Wed, 20 Feb 2019 - 695 - 234: How Tobi Pearce of Sweat Used Instagram to Launch a Fitness Empire
Heavy Lifting From humble beginnings to fitness empire, Sweat CEO Tobi Pearce tells us what it takes to run a multimillion-dollar business and grow a powerful brand with a significant other. At just 26, Tobi Pearce has accomplished a lot. He’s the CEO of Sweat, a fitness app that’s been downloaded 30 million times. He’s engaged to his business partner and Instagram fitness star Kayla Itsines. And together, they’re worth an estimated $63 million, according to Australian Financial Review. But just a decade ago, Pearce was homeless and struggling to get by on $45 a week, something he revealed in an Instagram post in July 2017. “I am not posting this for sympathy and this is not a sob story,” he wrote. “I just thought it was time some of you got to know ‘me.’” To get to know Pearce is to discover many unexpected facets. While he’s popular for his fitness empire, prior to all of that, he was a “nerd” who grew up in a small town in Australia and loved playing classical music. From what we’ve seen on social media, he can just as easily shred it on piano as he can in the gym. On his Facebook page, he posted a video of himself playing a complicated Chopin number, writing, “I used to be embarrassed to tell people I played piano as a kid because it wasn’t ‘cool’ or classical music made me a ‘nerd.’” Today, Pearce has plenty to be proud of. In addition to his upcoming wedding to Itsines, TechCrunch reports that the couple’s fitness company is on track to bring in $77 million in revenue this year. From Classical Music to Fitness Classes Pearce began his foray into fitness when he started working as a personal trainer to pay his way through college. He and Itsines met at a gym and began dating around 2012. Eventually, the pair became business partners, too, with Pearce taking over the marketing side, helping to promote Itsines’ popular Bikini Body Guides ebooks and grow her Instagram account (today she has more than 10 million followers). Not one to be easily satisfied, Pearce then set his sights on expanding the business “to kind of shake up the industry.” That’s when the Sweat platform was born. “My whole career and this particular field has always been about trying to push boundaries and kind of see how far we can move the dial and how big we can build things,” he says. Originally dubbed “Sweat With Kayla,” the Sweat app provides workout videos, meal plans, and progress-tracking tools to its subscribers, for $19.99 a month or $119.94 a year. It targets millennial women with programs from bikini body to post-pregnancy workouts and boasts well over a million monthly active users. The Appeal of an App-Based Business Moving from ebooks to a mobile app, what made Pearce choose a new platform for Sweat? As he tells Foundr, there were three main reasons: First, he wanted a better user experience. Originally, Itsines’ workouts were being shared through ebooks—not a very interactive platform. Pearce wanted a way to have more control over the user experience, including being able to gather user data to improve the product. Second, he wanted to meet the needs of millennials. Most of Sweat’s customers are in that age group, so Pearce knew that meant the content needed to be mobile-friendly. Finally, he wanted to be able to scale. To be able to make a real impact on the health and fitness industry, internationally, Pearce knew Sweat needed to switch business models. “The big move was, yeah sure, from ebooks and a website to an app,” he explains. “But it was also a huge migration from a single-purchase service into a subscription business. And subscription business economics are completely and fundamentally different to that of a traditional ecommerce business.” Combating Churn With an Engaged Community As with any subscription business, churn is always a concern. One way to combat the tendency for members to cancel their subscriptions is to cultivate an engaged community. For Pearce, this is a no-brainer: He’s seen how it works from his personal training days. When he was a personal trainer, he often picked up on the social habits of the people he was training. At 8:30 a.m., for example, a few women attended a 30-minute class with Pearce, while another group of women had coffee together downstairs awaiting their 9 a.m. slot. Once 9 rolled around, the groups would exchange spots, and by 9:30, when everyone was finished with training, they’d all go to the beach together. “Fitness actually brings people together,” Pearce says. But how can you recreate the social aspect of in-person fitness classes in a mobile app? The Sweat team knows people feel their best right after they’ve exercised, so within the app, users are prompted to invite their friends once they’ve finished a workout. They can even share their trophies and achievements, as part of what Sweat calls “social currency.” Beyond the friend-invite feature, Sweat has a community forum where members can share stories, find advice, and get motivated. “Not seeing much progress :( starting to panic,” wrote one bride-to-be on the Motivation & Encouragement forum. “There is such a difference between the two photos,” replied another member. “You’re definitely making progress so keep up the good work!” “There's all these different stories,” Pearce says of the forums. “But there's hundreds of thousands of women that can connect and relate with one another, and that really brings them together.” On Chasing Growth Without Sacrificing Quality While Pearce is aiming for growth, he’s not willing to do it at the cost of top quality and a strong brand. Sweat’s trainers, for instance, are carefully curated. “We're not really looking to have like a hundred or a thousand different trainers and programs,” Pearce says. “We're kind of looking to have best in house and best in class.” A prime example of this is Kelsey Wells, who joined the Sweat team over a year ago and leads the weight training and post-pregnancy programs. Beyond her finesse in the gym, she’s excelling on Instagram with 1.4 million followers. Her brand growth and depth have impressed Pearce, who says, “We'd much rather work with 10 people like her in their own specific categories than a thousand people that are just generalists.” With a team of talented trainers who are also Instagram rockstars, does Sweat have aspirations of acquiring influencers abroad to boost international growth? “There's definitely a potential for that,” Pearce says. How a Fitness Power Couple Finds Work-Life Balance Google “Tobi Pearce” and you’ll find plenty of headlines referring to him as “fiancé of Kayla Itsines.” From the start, he’s been comfortable doing the behind-the-scenes work while Itsines steps into the spotlight for the Sweat brand. As soon-to-be spouses and current business partners, how do they strike a healthy balance between work and personal life? “It has its testing moments, that's for sure,” says Pearce, adding that he’s obsessed with the business aspects while Itsines loves handling content creation and community interaction. “She’s able to switch off,” he says of his fiancée. Pearce, on the other hand, not so much. “I've always been probably a little bit too interested in ,” he says. “If I'm not talking about it, I'll be reading about it. If I'm not reading about it, I'll be listening to something about it or learning one way or another.” Pumping Up Your Personal Brand In recent years, a movement to build your “personal brand” apart from your company or product brand has taken hold of the entrepreneurial world. Big names like Gary Vaynerchuk and Neil Patel come to mind; both social media powerhouses use their personal brands to funnel clients into their consulting agencies. Sweat has a similar story. It began as Itsines’ personal brand, which Pearce helped grow into the formidable Instagram presence it is today. Recently, Forbes named Itsines as the top social media influencer in fitness. Many of her faithful fans have followed her to the Sweat app, too, where she leads high-intensity workouts based on her Bikini Body Guides. So what’s the secret to building a powerful personal brand? “Content and messaging are really king,” Pearce says. That means content that is high quality and messaging that creates interest. “There's so much crap on social media,” he adds. In the fitness sphere, he says it’s more than just looking good and posing for the camera. You need to create content in an intimate and authentic way. Just take a look at @kayla_itsines on Instagram. Instead of polished, picture-perfect content, it’s a mixture of motivational quotes, funny memes, before-and-after praise for her clients, and of course, workout videos—all with conversational captions where Itsines’ personality shines through. While Pearce is hesitant to give a one-size-fits-all strategy for growing your Instagram—”Every industry is different,” he warns—there is one Instagram tip he recommends for fitness brands: lay off the endorsements. “It's all well and good to sell a product or do endorsements, sure,” Pearce says. “But if that becomes everything that you do, it really becomes a bane of your existence and it's actually quite saturating for your personal brand. It's impossible for you to maintain credibility and authenticity as a brand if every second post that you do is talking about a new deal that you've done.” Instead, says Pearce, focus on what you’re good at. Let’s bring Gary Vee back into the discussion. Take a look at his social media accounts. How many times does he mention his agency? “I don't think I've ever actually seen him do that,” Pearce says. “The point that I'm making there is that if you do have a product, it's very often what you're trying to do is sell yourself and sell the opportunity, sell the dream. You're not really actually trying to sell the product itself because telling people to buy stuff is irritating.” The Sweat brand steers clear of hard sells. That’s no small feat in an industry that’s always pushing guarantees of six-pack abs, a celebrity body, or a nice rear-end. “We would never, ever do that,” Pearce says of his company, “because reality is that it instills the wrong cycle of mindset in consumers. It predicates the wrong perceived mindset before consuming a product and that only actually sets up consumers for failure.” How to Sell Without Selling If people hate being sold to, how do you get them to buy? Sweat focuses on the benefits, not the features. For instance, instead of promising you amazing abs, Sweat’s messaging would tell you how you’re going to feel more confident and develop better relationships by getting healthy with its app. “The best car salespeople are the ones who actually don't try to sell you anything, but they make you feel like you really want to buy the product,” Pearce explains. “They're telling you why this car's going to be perfect for your family. … They're not telling you that it's got 19-inch rims and blah, blah, blah.” For Sweat’s Instagram account, Pearce focuses on posting educational, credible content that adds value: healthy eating tips, user-generated content, and motivational quotes, with a few posts highlighting the Sweat app sprinkled in. “It pitches us as industry experts—which we rightfully are—but then it makes people turn to us when they do want to spend their money on a product that's actually going to help to solve these problems in their life, rather than going for the one that just says six-pack abs, because no one actually believes that crap.” And Pearce doesn’t get fixated on the one-off purchases; he’s looking to create long-term users and repeat buyers, which is something the Sweat platform is built to nurture. “They develop friendships with other members of our product and that builds our community.” Working Out What’s Next For the next year or two, Sweat will be focusing on reducing churn and improving the product, namely, getting more quality content and keeping users engaged. Long-term, though, Pearce hints at something more. He says there are three big pillars in the fitness industry: facilities (think studios and gyms), trainers and therapists, and content. “We obviously kind of only play in the content spectrum of that at the moment,” he says. “I think in the longer term, we'll probably, hopefully, get a chance to play in some of the other areas as well.” Key Takeaways How he met Instagram fitness influencer Kayla Itsines, who’s now his business partner and fiancée How he scaled the brand beyond Kayla’s Instagram account The advantages of developing a mobile app versus a strictly web-based platform The growth strategy that catapulted Sweat to about 30 million users in two and a half years What it’s like to run a business with your significant other and how to make it work Tips on growing a personal brand and becoming an influencer on Instagram How to promote your business on Instagram without being salesy His strategy for fostering a strong Sweat community and reducing churn What’s next for Sweat
Tue, 22 Jan 2019 - 694 - 233: How a Bootstrapped Ecommerce Company Took on Amazon, With Steve Traurig of Booktopia
Steve was a guest of StartCon, Australia’s largest startup and growth conference. It was held over two days at Randwick Racecourse in Sydney on Nov. 30 and Dec. 1. One For The Books The story of Booktopia, ‘Australia’s favorite bookstore,’ and how they’re conquering the competition—even Amazon. Once upon a time, a programmer who got his start with IBM was given an enchanted opportunity to create a magical bookstore that would one day battle powerful giants. The magical power? With just a click of a button, Australians could have brand new books delivered within days to their doorsteps. And just like in most fairy tales, our hero and his friends stumbled upon the opportunity entirely by accident. “We literally fell into it,” says Steve Traurig. Traurig and his two brothers-in-law, Tony and Simon Nash, were running an online marketing consulting business when Angus & Robertson, the 130-year-old Australian bookseller, approached them and asked if they would be interested in getting into the book business. The pitch was a white label book retail website, meaning that everything from the website creation to the distribution would be handled by Angus & Robertson. All Traurig and company had to do was add their personal flair. But Booktopia, the company that arose from that project, would end up becoming something much bigger. Nearly 15 years after Traurig’s brother-in-law said he “wouldn’t mind giving that book thing a bit of a go,” Booktopia has served over 4.2 million Australians and is on track to bring in $115 million this year, making it the market leader in online book sales. Oh, and they now own Angus & Robertson. The journey from their very first book sale to squaring off against Amazon for online book supremacy in Australia was a chess game of strategic move after strategic move. Thanks to some shrewd decisions, including focusing on customer interaction and building their own ecommerce and fulfillment systems, Booktopia’s well on its way to happily ever after. A White Label Bookshop, Transformed In 2004, with only $10 a day to put toward advertising their new business, Traurig and the Nash brothers dove headfirst into the book world. “When we first started, we owned nothing,” Traurig says. When Booktopia first launched, Angus & Robertson created their website, managed their distribution and owned the brand. Traurig and his brothers-in-law were responsible only for marketing, so they created a few Google AdWords campaigns (one of which is still running today) and waited for their first books to sell. By the end of the first year, they were doing $100,000 in business a month. This worked beautifully for the trio and for Booktopia for three years, but in 2007, they had to confront the reality that what they were building, with revenue ever increasing, could all go away in an instant. They also realized that the fulfillment company was neither able to keep up with the growth they were experiencing, nor were they able to meet the expectations Traurig held. “We decided we had to go out on our own, because we were actually building a company of value,” he says, “and we realized that if you want to have something of value, you have to do it yourself.” Things were going well, and they realized that in the current setup, they didn’t really own anything of substance, should they ever want to sell. So they broke away from the fulfillment company and set out to turn Booktopia into something of their own. They set up their first warehouse, hired a warehouse manager, bought some shelves off eBay, and got to work building their own core systems. “Dealing with those sorts of numbers in databases, in the website, in the front end, in the backend, etc., the scale is beyond almost any other retail environment, and we had to make it all work,” he says. “We built the systems ourselves and that takes particular commitment and skill.” With all of the changes taking place, it would have been reasonable to see a marked customer drop off. Before the transfer, they did about 130 orders a day, but that number only dropped to about 110 a day, even after everything from their systems to their website changed. Through it all, the Booktopia customers remained loyal. In fact, the focus Booktopia places on the customer experience would come to define their brand. “It’s about the customer obsession,” Traurig says. “About putting yourself in the place of the customer.” When Traurig and his brothers took on the fulfillment side of the business, they began with only a single book on their physical shelves, but knew that building up their stock was the only way to give their customers the best experience. Instead of the long wait from the moment an order was placed until a supplier could deliver the order and then ship it off, all they had to do once they built up stock was grab an item from the shelf the moment the order came in and send it along. “That was essentially a business-changing experience, because the feedback we got from the customer was instantaneous,” he says. Customers responded with glee that their books arrived so quickly, inspiring them to remain loyal and recommend the bookseller to friends. Because of this organic growth, Booktopia has never needed to take on investors. Even without investors, they have consistently outmatched the competition and met their sales goals. In fact, they made the BRW Fast 100, Financial Review’s list of the fastest growing Australian brands, seven times between 2009 and 2016, the only company to do so. Traurig says that they have also built strong relationships with their banks, something he describes as a critical part of doing business. This gives them additional wiggle room if necessary, staving off a need for traditional investors. “A lot of startups, a lot of founders, think they immediately need to go out and grab someone else’s money and give away bits of the company,” he says. “There’s definitely merit in doing that for certain types of models. We chose to actually build a solid business organically and build it off the back of our customers and customer service.” And this approach has carried them through what could have been a business-ending battle. Squaring Off Against a Giant When Amazon announced that it would be launching in full in Australia at the end of 2017, Traurig wasn’t nervous. The institutions they worked with, however, had concerns. The gargantuan online retailer had generated $136 billion in revenue the year before, with all signs pointing to continued growth. So how was “Australia’s local bookstore” going to keep up? Well, according to Traurig, they had been keeping an eye on the behemoth from the very beginning and hadn’t let its success deter them. “From our point of view, when we started Booktopia, Amazon was shipping $100 million worth of books into Australia already, and we didn’t worry about that,” he says. “We were fearless.” They focused instead on their own business, and the most important asset: the customers. Due to its global nature and size, Amazon has an impersonal quality to it that Traurig says Booktopia always vowed to counter. For example, Booktopia’s website has the office’s physical address, email, and phone number on every single page, not only allowing but encouraging customers to reach out and share praise, complaints, and questions instantaneously. They wanted to be accessible and feel like a part of the community. To keep up with the emails and phone calls, they quickly hired their first customer service staff, a cheerful individual who still answers the questions of Booktopia customers today. Traurig says they take customer feedback extremely seriously and use it to inform their continued development. With a 20-person development team on the case, he says that Booktopia is always in pursuit of the best possible user experience, a quest that can only be completed through regular, honest feedback. Traurig says that this approach to customer service has been the key to keeping up with the competition. “All throughout our history, Amazon has been this massive company…but we were just focused on getting product to our customers.” And if winning 2016’s National Book Retailer of the Year and 2017’s National Bookstore of the Year at the Australian Book Industry Awards is any indication, Booktopia’s approach is working. The Next Page Today, Booktopia has over 6 million products available on their website with over 150,000 of those titles in stock in a 140,000 square-foot distribution center. They also acquired Angus & Robertson, along with its online store Bookworld, in 2015. “It’s a 130-year-old company that had a very, very good chance of disappearing completely,” Traurig says. “So for us, it was also an honor.” The company currently runs as its own business unit with independent marketing, branding and customer base. The founders also have high hopes for the company’s automated systems and distribution center. To demonstrate their capabilities, Booktopia acquired an online camera and optics company. In doing so, Traurig and his partners are hoping to show that their systems can handle more than a single type of product. So what’s next for Australia’s favorite bookstore? Although they ventured down the path of going public in 2016, they pulled the IPO just before launch, choosing to remain a private company. With Amazon looming, and after watching several other online companies attempt to go public and fail spectacularly, they decided to keep things as they were. While Traurig has a “never say never” mindset toward another try at going public, there are no plans to move in that direction for now. “Our customers have been our investors,” Traurig says. “What we’ve always chosen to do is delight the customer.” And in true fairytale fashion, delight them they will. Steve Traurig’s Tips on Building a Sellable Company While founders are still scaling the challenging mountains that come with launching a business, it might seem silly to think 500 steps ahead to the day they will be shaking hands on the sale of the company. But Steve Traurig believes building a company that will someday attract a buyer starts on day one, so he offered three tips to creating a company that will sell. Make Sure Your Bookkeeping is Impeccable “One of the things we’ve always done is make sure that our financials, our financial reporting and our accounting are top notch,” he says. As you might expect, well-kept books have always been a priority at Booktopia. From the very beginning, they sought financial advice when necessary and kept all of their books in perfect order. And because neither he nor his other co-founders had strength in bookkeeping, they always made it a number one priority to hire someone skilled. “It may just all look like a whole bunch of receipts and a pain the neck…but aim to set up solid financial management right at the beginning.” Create as Many Original Things as You Can In the beginning, Booktopia was a white label website, but when it started to flourish, Traurig and his partners realized they needed to make some changes. “If we wanted to sell it,” he says, “we had nothing to sell,” Traurig says. So they decided to build all of their own core systems to create something that would be attractive to eventual buyers. Traurig encourages founders to use as many original systems as possible and innovate wherever feasible. In doing so, the value of the company you may someday look to sell increases significantly. Demonstrate What You’ve Built Now that you’ve created something original, it’s time to show what it can do! Perfect its intended capabilities and then push its limits. This is what Traurig says they are currently doing at Booktopia with their distribution systems. Because they created the automation used in the center, they decided to demonstrate to potential buyers that it could handle more than one product at a time, leading them to purchase a camera company. The only thing better than an innovative creation is one that can be used in more than one way. Traurig says that demonstrating this is a great way to build a sellable company. Key Takeaways How this self-professed tech guy “fell into” starting an online bookstore that rivals Amazon How Booktopia has remained fully self-funded for 15 years Why they pulled an IPO just before it went live How he felt about Amazon coming to Australia For bootstrapped businesses, how to know when it’s time to build your own internal tools and handle shipping and fulfillment yourself The reasons behind the acquisitions Booktopia has made, particularly Angus & Robertson How Booktopia approaches Conversion Rate Optimization (CRO)
Wed, 16 Jan 2019 - 693 - 231: How to Do Your Best Work by Working Less, With Jason Fried of Basecamp
Ditching Growth and Setting Up Camp How Jason Fried and David Heinemeier Hansson turned their backs on lofty goals and created a profitable tech company quite unlike any other. Growth is exciting. Sales boosts, climbing revenue, and eager investors are all signs of a happy, healthy company. Right? Basecamp founders Jason Fried and David Heinemeier Hansson beg to differ. While they rejoice in revenue and profit as much as the next set of tech company founders, they define success a little differently. Instead of chasing arbitrary growth goals and deadlines, they simply aspire to do their very best work day in and day out. Instead of always expanding their line of software products, they double down to perfect the one they already have. Instead of scrambling to hire more people when revenue is climbing, they enact a hiring freeze so as to not lose sight of their mission. Critics might call their approach too timid. Others call them brilliant. Fried and Hansson don’t care much either way. They’ve followed the startup road less traveled and have pitched sturdy camp at the end of it—all while remaining profitable and highly respected. Today, Basecamp is one of the leading project management and team communications tools on the market, while boasting remarkable employee satisfaction. The duo also have a new book out explaining their unique take on startups and how they’ve found success. Setting Up Camp The origins of Basecamp date back to 1999, when Fried started 37Signals as a web design company. It’s since transitioned to a web development company, specializing in project management and team communication software, and became Basecamp in 2014. The transition to web development happened in the early 2000s, when young Danish developer Hansson responded to Fried’s blog query about PHP. Hansson had been a fan of 37Signals for years and jumped at the chance to help out. After a handful of emails, Fried decided it was easier to hire Hansson as a programmer than learn to code himself. The firm created Basecamp’s flagship software product in 2004 and drummed up 45 customers in its first year. The idea was simple, but met an important need in the modern workplace: It allowed for real-time, remote communication to help teams identify what needs to be done (and when) and work together smoothly and efficiently. In the following years, the pair saw their product achieve steady growth, which also caught the eye of venture capital and private equity firms. Even so, working with investors never made sense to Fried and Hansson. They didn't want to sell any control of Basecamp or be forced to exit their business on someone else’s timeline. But they did need money to continue developing Basecamp and its products. In 2006, the pair was approached by Jeff Bezos himself. In exchange for a yearly dividend payout (but without making any other demands or staking any other claims to the company), Bezos purchased a piece of ownership and became a member of Basecamp, LLC. This arrangement worked well for Fried and Hansson as they didn’t have to sell control of their business to raise money, and the purchase was a lucrative investment for Bezos. “[After Bezos’s investment], the appeal of selling the company subsided and allowed us to pursue our mission to build a wonderful company to work in for the long term,” Hansson said. Fried and Hansson maintain a fiscal relationship with Bezos, but that’s about it in terms of what they’ve taken from the richest man in the world. As for perspectives on growth, productivity, and culture, Basecamp has blazed a trail of its own. It Doesn’t Have to Be Crazy at Work Or does it? Fried and Hansson’s latest book introduces a new perspective on the modern-day entrepreneurial hustle. They published this book to “[send] out an alternative beacon,” Hansson says. The cover of It Doesn’t Have to Be Crazy at Work features a big red “X” crossing out words like "packed schedules,” "80-hour weeks," and "overflowing inboxes." Sadly, a lot of today’s business literature and role models celebrate crazy schedules, packed days, and little sleep. “[This has] been a predominant narrative for quite a long time,” Hansson says. Pushing back on the norm, It Doesn’t Have to Be Crazy at Work argues that this kind of lifestyle isn’t healthy, sustainable, or necessary. “You can do great work in a normal eight-hour day and 40-hour week,” Fried says. Basecamp’s culture and success is a testament to this ideal. The 20-year-old business has been profitable every single year since it started, and the company’s 50-plus employees work a totally normal schedule. “At Basecamp, it isn't crazy at work,” Hansson says. “Crazy at work should be an exception; it shouldn't be the norm, and certainly not be an aspiration.” The (Mis)Guiding Principles of Goals and Growth As of 2018, Basecamp has more than 100,000 companies utilizing its software. But unlike most tech companies, that number goal doesn’t dictate their work. “We have no interest in building [our] company to a certain amount of dollars or size,” Fried says. In Silicon Valley, businesses often feel the need to dominate industries and destroy the competition. Basecamp isn’t driven by those criteria, and they’re definitely not driven by constant growth or lofty goals. “We've always felt that we don't need to chase anything but profit and quality...and quality of life, for both our employees and customers,” Fried says. To Fried and Hansson, it’s much more about running a sound, sustainable, profitable business. Instead of prioritizing OKRs or various other acronyms, they simply focus on doing the very best work they can every day. “The idea that a goal should be driving you harder. ... I don't understand why that'd be,” Hansson says. “People forget that goals are figments of their imagination.” He explained that as a primary indicator of what success should look like, goals are not helpful. They’re arbitrary measures of success or failure…and falling short of one can make you feel bad when you shouldn’t. Moreover, goals are often determined by looking at others. “They become this death of enjoyment by comparison,” Hansson says. Basecamp does set a few loose, top-level goals, such as “build a good product,” “create a great place to work,” and “treat customers with dignity, honesty and kindness.” But what about specific metrics, like sales, retention rate, or customer success? “We can look at [those] numbers, like retention rate, renewal rate, etc., to see how well [Basecamp is] working,” Fried says. “But we don't have goals around those numbers.” To measure the success of their product, the team simply uses it themselves. They actually use it more than any other company. By employing their own product and improving it every day, they’re able to better understand their customer experience. And when it works better for them, it works better for their customers. “We judge our success by how we feel about our work, and the customer reaction and reviews,” Fried says. They ask themselves, “Are we proud of what we did today? Are we proud of the way we did it? And ultimately, do customers like the product?” How Basecamp Approaches Success Such a nebulous approach to growth and goals is sure to make employees feel adrift, right? One might think so, but the opposite is actually true for Basecamp employees, they say. “[We believe] work should be a pleasurable experience,” Hansson says. “Success to us means we set our own agenda, control our own destiny, and have a sense of independence,” There are very few meetings at Basecamp, and that’s not just because they are a mostly remote workforce. The company does have an office in Chicago, but even those who live nearby only come in a few days a week. “We’re a writing-heavy company,” Fried says. Instead of insisting on weekly stand-ups or organizing project check-ins, the pair encourages their employees to chronicle all updates, ideas, and thoughts. This gives employees a chance to ponder what they’ve read and formulate thoughtful responses—instead of presenting an immediate reply the way you’d expect in meetings and boardrooms. This notion of slow, delayed communication inherently pushes back on live chat, an up-and-coming trend in today’s tech companies. “The idea of chat as a primary means of communication inside of a company, I believe it to be a very toxic idea,” Fried says. He argues that outside of social communication and quick check-ins, keeping in touch with chat can cause a massive distraction for employees. “I think that, right now, chat is why work is more hectic for more people,” Fried says. Like they contend in It Doesn’t Have to Be Crazy at Work, Fried and Hansson don't expect, require, or support a culture that's “always on." They routinely monitor for “overwork,” and occasionally have to gently remind employees that late-night emails or mid-weekend product updates aren’t necessary. In fact, they’re frowned upon. We don't reward late, hard overwork,” Fried says. “We’d rather reward someone who works normal hours and gets a lot done…someone who protects and manages their time. There’s no celebration of long hours here” Basecamp hasn’t always been like this, though. Some of the values have been around since the beginning, but the company has spent the last 20 years constantly tweaking the way they work. One major change Fried and Hansson have made is the way Basecamp gets projects done. The company used to work with absolutely no deadlines, then started implementing three-month work periods. Today, they work within six-week cycles. The team doesn’t do anything they can’t complete in six weeks. When asked if that sort of deadline adds pressure, Hansson is quick to respond: “It could if you don't approach the idea of the budget as a tool. It’s there to shape your decisions and guide you. Budgets make it easier to say ‘no’ or ‘not right now.’” Fried and Hansson are less interested and impressed by the results of work done with unlimited resources or timeframes. In the past, working with no deadlines left each project open-ended. It was harder for developers to say “no” or know when to stop working. Each six-week time budget forces employees to make decisions and weigh tradeoffs. “That's what's enjoyable about product development,” Hansson says. By implementing changes such as these, Fried and Hansson have noticed that Basecamp has become a calmer company. While the pair conducts employee audits twice a year, they mostly take the pulse of employee success and satisfaction by staying close to each team, which isn’t hard given the company only has 53 employees. “We're constantly seeing [our employees’] work and talking to people,” Fried says. “We have a really good sense of how things are going. It’s pretty obvious when someone’s not doing well.” How does their remote culture affect this? It doesn’t. The team has a few in-person outings each year—when they gather everyone in their Chicago office—but even those are spent “reconnecting and recharging social batteries,” as Hansson explains. Basecamp’s culture is simply based on trust and harmony between words and actions. When asked about the challenge of building a culture with a remote workforce, Hansson says, “[That is] based on a misconception of what culture actually is. Our definition is that culture is repeatable actions, what you actually do.” Fried and Hansson do instill specific values and principles throughout the company, but Basecamp’s culture arises when they live up to those words. “Nothing transmits culture more than seeing actions, especially during hard times.” He also believes that a remote workforce is better situated to building a strong culture because such culture is derived even more explicitly from the actions you actually take and the shared writings you commit, given there’s no office or in-person meetings to do the work for you. The numbers behind Basecamp’s culture and employee satisfaction are off the charts. The industry average for employee turnover is about 18 months. Of the 53 employees currently at Basecamp, the average length of employment at Basecamp is 5.8 years. Eight employees have been there over 10 years, and almost half have been there over seven. “Basecamp employees stick around a long time, even in traditionally high-churn positions,” Hansson says. The company has recently enacted a hiring freeze, announced by Hansson in a post on their blog, Signal V. Noise, aptly titled, “Things are going so well we’re doing a hiring freeze.” In the spirit of constraints, they’ve capped their headcount and are doubling down on good, effective work. “We have no love for size,” Hansson says. “Big companies can’t solve small problems. The bigger they are, the more divorced and less able they are to relate [to customers]. More layers of management and indirection only harm empathy and kindness.” Key Takeaways How his latest book, It Doesn’t Have to Be Crazy at Work, is pushing back on Silicon Valley’s excessive work culture Why chasing growth in your business can blind you Why Basecamp doesn’t set OKRs, KPIs, or any goals of the sort How to know if you have the right people on your team How to ensure your remote team is doing their best work The evolution of Basecamp’s culture and work processes over time The difference between deadlines and “dreadlines” When Slack can be toxic to your company Why in-person communication isn’t as important as you think (and might even be detrimental) How to eliminate meetings once and for all The story behind selling a piece of ownership to Jeff Bezos
Wed, 02 Jan 2019 - 692 - 226: Why Makeup Mogul Bobbi Brown Never Wants to Build Another Billion-Dollar Brand
Bobbi Brown has spent her life helping people embrace who they are. Embracing herself—strengths and weaknesses—has also proven to be a powerful career strategy. The veteran makeup artist and founder of the eponymous cosmetics line built her empire on the belief that people are most beautiful when they love who they are. This natural approach to makeup went against the over-the-top aesthetic of the 1980s—which, at the time, critics said would be her undoing—and people couldn’t get enough of her. “My hope is to help women everywhere understand that being who you are is the secret to lasting beauty,” she writes in her book Pretty Powerful. Powered by that philosophy, Brown became known as a makeup artist to the stars, touching up the faces of Carla Bruni, Katie Holmes, and Michelle Obama, to name a few. With characteristic warmth, she treats even the biggest of celebrities like old friends. A video for HELLO! Canada shows Brown in the back seat of an Uber with actress Meghan Markle, dishing out makeup tips and jamming to Biggie Smalls. As they part ways, Brown tells the now-Duchess of Sussex, “Text me later.” Whether she’s getting celebrities ready for their close-ups or hobnobbing with the rich and famous in the Hamptons, Brown remains refreshingly down to earth. “One of my best attributes in life…is I'm incredibly naive,” she tells Foundr. “I think everything is going to work out.” And for Brown, a lot of it has. She scored big with her first job out of college as a freelance makeup artist, catching the eye of Vogue, which hired her for a cover shoot with Naomi Campbell. In 1991, with just 10 lipstick shades, Brown launched a cosmetics line that she would sell to Estée Lauder four years later, and continue to work at for more than 20 years after that. When Brown stepped away in 2016, she left behind a billion-dollar company. And in the midst of all that, she met the man of her dreams, Steven Plofker, to whom she has been married for 30 years. Yes, she has had an illustrious life and career. But one look at her latest projects makes it clear—Bobbi Brown is just getting started. On Being Boss Again When she left Bobbi Brown Cosmetics (which she calls her “first baby”), the beauty world was stunned. But the company was no longer in her direct control, and she was eager to be back at the helm. “I realized that it was time for me to be the boss again because that's really what makes me happy,” she explains. “I like to be in charge, and I like to work with really fun, cool people to create things.” And that’s exactly what she’s been doing. Her first project after leaving the company was to write and promote a book, Beauty From the Inside Out, a lifestyle guide that details recipes, nutrition recommendations, and confidence-boosting tips. This was a nod to Brown’s aspirations to broaden her scope from cosmetics to general health and wellness. “I don't like a lot of makeup,” says Brown, who is an outspoken opponent of contouring, using darker shades to “reshape” parts of your face. “I don't believe women need a lot of makeup. And I think the healthier you are, the better you feel and the better you look.” In 2017, Brown opened Just Bobbi lifestyle concept shops inside of Lord & Taylor department stores, where she curated her favorite wellness and beauty products for the public to peruse. Earlier this year, she launched a line of wellness products, Evolution_18, on TV shopping network QVC. She also runs a film and TV studio, 18 Label Street, and her own line of eyewear, Bobbi Brown Eyewear. And in an unexpected move, she partnered with her husband to breathe new life into a 1902 historic landmark and launch The George, a boutique hotel in their hometown of Montclair, New Jersey. As if that weren’t enough, she’s got a podcast in the works. With so many projects, how does she maintain her focus and a sense of cohesion? “It all works together for me,” Brown says, “because it's pretty much authentic, and it's marrying, finally, really what I believe in.” Why She Never Wants to Build Another Billion-Dollar Brand With Brown’s hard-earned success and elite status comes perhaps the greatest privilege any entrepreneur can obtain: the power to say no to otherwise enticing opportunities. She says many of her friends in venture capital have asked her, “How many millions do you want?” in an eager bid to invest in her projects—regardless of what those projects are. “Look, it's very tempting,” Brown says of the investment offers. “But I don't want it.” For entrepreneurs who have pounded down the doors of VCs hoping to snag just one investor, that outlook may be difficult to understand. But for Brown, it’s all about freedom. “I don't want to have to report to anyone,” she says. “I don’t want to sit in meetings.” While many tout the venture model of forgoing profitability now in order to borrow money, spend it on growth, and sell the company later, that’s not Brown’s style. If she were to sell 500 bottles of vitamins, for example, she says she would reinvest the profits by ordering 1,000 more bottles and keep growing incrementally from there. “I'm very simple-minded,” she says. “I know it makes no sense, but I really do believe in making a profit.” So, for now, she’s content to bootstrap, even if that means slower growth or a smaller business. “I never want another billion-dollar brand. … I never want to go that big again because the headaches that come with it are not worth the rewards.” Reflecting on the expansion of Bobbi Brown Cosmetics, she calls the first 15 to 17 years “amazing,” but says that as the company grew, her control over it diminished. “I'm not the boss anymore,” she says, “which is why I'm not there.” Beauty, Glam, and Instagram So if Brown is hesitant to grow her new businesses too big or too fast, and still wants to be able to call the shots, what is her plan for growth? A lot of it revolves around working her connections—especially the connection to her audience. Back when Brown launched her career as a professional makeup artist, and even later as a cosmetics line founder, there was no such thing as social media or ecommerce. To get her products off the ground, she started mailing out lipsticks until one day, a New York department store agreed to carry them. In the digital age, when brands have direct access to consumers online, Brown is thriving. “The internet is an amazing place for people to go on and really look and find the community they need,” she says. “Whatever you're going through, there is a support group for that. There are people teaching and empowering.” Brown is active on Instagram (in fact, she manages at least four accounts), where you can find anything from the announcement of her latest probiotic product to photos of her recent trip to Paris. On Facebook, she hosts a weekly live broadcast where she interviews everyone from Gary Vaynerchuk to her Aunt Alice. And the best part? These episodes don’t cost her a thing; they’re shot on her smartphone. “There are so many ways for people to start their own brands,” she says. “There's a lot to teach and a lot to learn.” Making It Up as She Goes By this point, Brown may seem unstoppable. But she’ll be the first to tell you that accepting her weaknesses has made her a stronger entrepreneur by forcing her to embrace her strengths, and get help with everything else. It’s similar to her approach to cosmetics. As a makeup artist, Brown refuses to hide clients’ “flaws,” preferring instead to accentuate their natural beauty. “It's such a sign of strength for someone to know what they're not good at,” she says. “And I think a lot of…people starting to be entrepreneurs think they could do everything, and you can't.” For instance, Brown doesn’t know how to type—but she’s written nine books. At times, she gave an assistant her handwritten notes and had them transfer them to digital; other times, she had writers interview her and take the information down for Brown to edit. “What you're not good at, find someone that is and tell them what to do.” Her sharp sense of self-awareness was honed from a young age. Growing up, she struggled in school and didn’t have access to tutoring. “Either my parents punished me or they said, ‘Oh well, she'll never be a secretary.’ They were right…because I dropped out of typing because I couldn't figure it out.” From those early experiences, she learned a valuable lesson. “I had to figure out, like, almost coping mechanisms. I don't know if I had learning disabilities. I wasn't good at something, but I knew I had to do this.” When conforming to convention didn’t work for her, Brown would develop her own distinct approach. For example, the first time she wrote a book, she followed the rules: write the book, edit it, then source the photos. But it was extremely difficult for her. So with her last couple of books, she did photo shoots first, then put the book together based on the photos, then had the writers write. “I drove my publishers crazy,” she says. But for her, it worked better. So if there’s something essential you don’t know how to do? “Figure it out,” Brown says. “That’s my only advice.” Happiness Never Goes Out of Style In many ways, Brown has been a contrarian in an industry that is notoriously cookie-cutter. And maybe that’s been the key to her success. While she used to compare herself to the supermodels she worked with, she’s learned to be comfortable in her own skin. When people told her things had to be done in a certain way, she forged ahead with her own process and succeeded. But even with her many accomplishments, Brown doesn’t subscribe to any notion of perfection or “having it all.” “I'm not tall and blond and athletic, which I always wanted to be,” she says. “I can't sing. I can't draw. But I have a sense of humor, and I have a lot of friends. I've been married 30 years…I have three amazing boys that I adore…and I've been able to be an entrepreneur.” “Is that having it all?” Brown says. “No—there’s no all. But I'm happy with what I have.” Key Takeaways Why Brown never wants to create another billion-dollar brand Her philosophy on what makes entrepreneurs strong What she believes is the ultimate secret to lasting beauty How to accept your weaknesses as an entrepreneur and forge ahead in spite of them
Wed, 21 Nov 2018 - 691 - 688: (Solo) I Lost Years Of My Life To This One Mistake (And You're Probably Making It Right Now)
I have never said this directly on the show before, but shiny object syndrome did not cost me months. It cost me years. Entire years where the Foundr team was spread across five or six initiatives instead of going deep on one or two. And the worst part is it never felt like a mistake. It felt like being smart because I kept seeing opportunities everywhere. Here is the problem: every new thing you chase takes focus away from the thing that is already working. And the most dangerous shiny objects are not the bad ideas. They are the good ones that just are not the right ones for right now. In this episode, I share the three question decision making matrix I use now before committing to anything new at Foundr, two real examples of it in action, and why the founders running billion dollar companies almost always do one or two things exceptionally well rather than chasing everything. Here's what you'll take away: The three question matrix: ease of execution, financial impact, and customer impact, and how to score any new idea honestly before you commit How we used the matrix to greenlight Foundr's sponsorship arm and turn a cost centre into a high margin revenue stream with one person managing it Why the Kickstarter coffee table book that raised $200,000 was still the wrong decision, and what eight months of lost focus actually cost Why good ideas are more dangerous than bad ones when it comes to shiny object syndrome Alex Hormozi's concept of pushing through the depths of despair rather than jumping to the next thing when something gets hard What Steve Jobs did when he came back to Apple and why doing fewer things at the highest level is still the most boring and most powerful strategy in business If you are spread across too many initiatives right now or about to chase something new because it feels exciting, this episode will give you a clear filter for making that call before it costs you time you are not getting back. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 27 Jul 2026 - 690 - 18: The Life of a Bulletproof Executive - Dave Asprey Shares GOLD on Bio-Hacking, Upgrading Yourself, Entrepreneurialism and Becoming The First Human to Sell Anything Using Ecommerce
It’s 4pm. You’re slumped in your chair, your eyelids are drooping, your head is sagging. You’re at work, and any mental activity feels like you’re wading through a swamp of molasses. Have you ever stopped to wonder why you’re so tired, or why some days you just don’t get anything done? For even the most successful people in the world, this is not a rare sensation. If you’ve ever felt a little more sluggish, more lethargic, more tired, and less productive than you want to be, you’re not alone. And the good news is, thanks to Dave Asprey’s inroads in the field of bio-hacking, you won’t have to feel that way for much longer. When we spoke with the affable Dave Asprey, he was the font of all knowledge on productivity, e-commerce, and entrepreneurial innovation. A millionaire by the age of 26, Dave Asprey is a Silicon Valley investor and entrepreneur who invented the juggernaut of ecommerce. Oh, and he’s also a pioneer in self-directed transhumanism. Simply put, he’s a bio-hacker. He’s spent fifteen years and a quarter of a million dollars hacking his own biology. He's ‘upgraded’ his brain by more than 20 IQ points, lowered his biological age, and lost over a hundred pounds in weight with minimal exercise. His goal? To maximize the performance of the human body and mind, transcending traditional limits. And his results are startling to say the least. Dave’s journey began when he was the first person to sell something over the internet. When asked as to whether he was one of the first, Dave corrects: “I don't think I was one of ‘the first', I think I was the first person to do ecommerce.” Quite a claim, but one that is supported. Dave modestly asserts this wasn’t out of sheer Steve Jobs-like genius or insight. He maintains that his experiments in the formation of ecommerce were out of necessity. As a student working at ice-cream retailer Baskin Robbins, Dave’s college increased the cost of his computer science tuition by 1500%. “I realized I couldn't afford to go to school so I had to do something”, he says. His answer? Start a T-shirt company. “I sold ‘caffeine’ T-shirts to twelve countries out of my dorm room,” he says. “There was no web browser, so this was on a part of the Internet called Usenet.” Asprey claims it was “just a different way of thinking about the whole problem of connecting with your community.” But if you think T-shirts is how this aspirational computer scientist cracked his first mil, you’d be mistaken. “I would have loved that if the T-shirts made me a million dollars,” he says. “They didn't come anywhere close to it. But they did pay for my school.” At the time, Asprey had an inkling that the Internet was going to be the next big thing. So he followed his gut and went to the global hub of all things technological: Silicon Valley. In this interview you will learn: -Dave'slife as an entrepreneur and how he got started - how he became a millionaire by the time he was 26 - first person to sell something online -bio-hacking - how it all started -Lessons learnt, as an advisor to extremely successful companies and startups -Super charging your body, upgrading your brain -How do you manage your time so effectively -Biggest breakthrough in all Dave's testing and hacking, biggest bio hack wow moment -Craziest thing Dave has done in his experimentation -The bullet proof life -The diet, how to obtain the best mental performance -limitless sleeping, and increasing your creativity -how did bullet proof coffee come about -How to become a more powerful entrepreneur by upgrading your biology -smart drugs, and tools used -First steps of action entrepreneurs can take today to increase their productivity - top 3 tools / hacks I Need Your Help! If you haven’t already, I would love if you could be awesome and take a minute to leave a quick rating and review of the podcast on iTunes by clicking on the link below. It’s the most amazing way to help the show grow and reach more people! Leave a review for the Foundr Podcast!
Wed, 24 Dec 2014 - 689 - 687: I Broke Every DTC Rule and Built a $1 Billion Brand From My Garage
Sandra Oh Lin walked away from running eBay's fashion business in 2011 to pack craft boxes in her garage. She raised just $11 million in total - and never needed another dollar. KiwiCo has now shipped over 50 million crates, crossed $1 billion in lifetime revenue, runs profitably since 2016, and operates with a team of under 150. The standard DTC playbook says outsource fulfillment, buy every customer with paid ads, and burn cash until you exit. Sandra broke all three rules and built one of the most capital-efficient consumer subscription businesses ever created. In this interview, the founder and CEO of KiwiCo breaks down the two-word churn survey answer that unlocked profitability, why she's run her own warehouse for 14 years instead of using a 3PL, and how 70% of her traffic costs almost nothing. What you'll learn in this interview: • How she went from 19 crates taking five people all day - to 50 million shipped • Why she ran her own warehouse for 14 years instead of outsourcing - and why it crushed competitors every Christmas • The two words buried in churn surveys that led to launching three new subscription lines at once • How all three new lines sold out at the 2014 holiday launch - and drew a direct line to their first profitable month • Why 70% of KiwiCo's traffic costs almost nothing - and what those channels actually are • How a website going horribly wrong led her to recruit the first engineer at YouTube as co-founder • The motivation spreadsheet: why every team member distributes 100 points across what actually drives them • How the "graduation" mechanic turns developmental churn into a moment of delight • Why she raised less than $11 million total while building a nine-figure business • How she's revamping four subscription lines, expanding into retail, and launching internationally for the first time If you're building a subscription brand, trying to grow a capital-efficient DTC business without burning through VC cash, or looking for the playbook behind what 14 years of relentless operational discipline actually looks like, this conversation will fundamentally change how you think about retention, fulfillment, and what it means to build a business that doesn't need to be sold. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH SANDRA OH LIN Instagram → https://www.instagram.com/kiwico_inc/ LinkedIn → https://www.linkedin.com/in/sandralin/ Website → https://www.kiwico.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 23 Jul 2026 - 688 - 686: Claire Built The World's #1 Dachshund Brand From Home - Now Doing $140K/Month
Claire Wolfson got her first dachshund at 20, became completely obsessed, and watched him get paralysed by the spinal condition that affects almost every sausage dog. The original plan was to design a supportive harness. That didn't work out. So her husband Chris drew a simple wiener dog silhouette, they slapped it on some beanies, and Bean Goods was born. That was 2011. Thirteen years, one capsule tee collection, two designers, and zero business education later - they're doing $140,000 to $150,000 a month. In this episode, Claire is refreshingly honest about what 13 years of slow, scrappy building actually looks like - the years of winging it on pricing and margins, the decade of running Instagram solo, the agency experiments that never paid off, and what finally shifted when she stopped doing it all alone. What you'll learn in this interview: How Bean Goods started with beanies, a logo, and no manufacturing experience - and why a capsule collection of 3 to 5 graphic tees in 2013 was the moment Claire knew it could be a real business Why starting on Instagram in 2012 - the year the platform launched - gave Bean Goods an early mover advantage in the dachshund community that still pays off today How Claire grew the brand's Instagram solo for nearly a decade with no social media strategy background, and what "consistency" actually looked like before it became a buzzword The pricing and margins reality of those early years: blanks at $3.50 to $8.50, one-colour screen prints, and absolutely no idea what a healthy margin looked like How they hit their first six-figure year around 2013 to 2014 using only organic Instagram and email marketing - and why MailChimp lasted for years before Klaviyo What eight years of just Claire and Chris doing everything actually cost them - and how getting their first intern in 2019 started to change the shape of the business The meta ads journey from 2017 onwards: a Facebook ads course built for service businesses, a short agency stint, and why she kept coming back to running them herself How Bean Goods went from inconsistent $68K to $80K months to consistently hitting $140K to $150K - and the specific ad account changes that drove it Why bundling is brand new territory for a 13-year-old brand - and what it says about how much room there still is to grow even when you think you know your business What it takes to build a team and a warehouse operation that can run for three weeks while you're in Europe - and why that, more than any revenue milestone, is the win Claire talks about most If you're building slowly and wondering whether the grind is ever going to compound into something real - Claire's story is the answer. Bean Goods didn't go viral. It didn't have a moment. It just kept going, kept learning, and kept showing up for a community of people who are, against all odds, extremely passionate about sausage dogs. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY CLAIRE WOLFSON Instagram → https://www.instagram.com/beangoods/ LinkedIn → https://www.linkedin.com/in/claire-wolfson-599b47a/ Website → https://beangoods.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 22 Jul 2026 - 687 - 685: (Solo) The $500,000 Lesson I Had to Learn the Hard Way
A few years ago I lost half a million dollars in 30 days. Not in crypto, not in a speculative bet. In the business I built from my parents' basement and launched on $3,000 from a credit card. And the part that still gets me is that the loss itself was not the dangerous part. The dangerous part was everything that led up to it. Here is the thing nobody warns you about: your most vulnerable moment as a founder is not when things are falling apart. It is when everything is working, people are telling you everything you touch turns to gold, and you start to believe it. In this episode, I share the full story publicly for the first time, what actually caused it, how I got through it, and the two lessons that came out of it and completely changed how I build now. Here's what you'll take away: Why success is the moment you need to be most paranoid, not most relaxed, and what stops most founders from seeing it that way How spending $1 million a month on ads with no back end system or unit economics in place set up the fall before it happened The ego shift that happens when you stop questioning, stop running worst case scenarios, and start thinking the machine will just keep running Ray Dalio's principle of pain plus reflection equals progress, and why most founders feel the pain and skip the part that actually matters Why being in the repeat business is the first thing I focus on now when building anything What Drew Houston means when he says founders must be learning machines, and how I stopped being one right when it mattered most If you are in a season right now where something has gone wrong, or you are riding a wave and quietly getting comfortable, this episode is for you. The reflection is where the progress lives. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 20 Jul 2026 - 686 - 684: She Bet Her House Deposit on Hair Gel - and Built an 8-Figure Brand
Yasmina Elmerkaoui had one shot - use the house deposit to buy a home, or bet it all on a hair gel she'd spent two years formulating. She chose the hair gel. On launch night she packed orders until 5am, drove them to the post office herself, and woke up to find all 20,000 units - what she thought was a year's worth of stock - completely gone in 24 hours. Macao is now on track for eight figures in its third year, built on 90,000 Instagram followers, zero outside funding at launch, and a pre-launch call to her manufacturer that saved everything. In this interview, Yasmina breaks down the exact pre-launch move that meant stock was already in production when she sold out overnight, how she turned copycats into a celebration, and the investor email she kept deleting because she thought it was a scam. What you'll learn in this interview: Why she bet the house deposit on a hair gel - and the mentor conversation that pushed her over the line How nearly $10,000 in sampling and a $30,000 first run taught her what building a real product actually costs The pre-launch gut call - why she paid a deposit to start production before launch, and how it saved the business when everything sold out in 24 hours Why she started signing customer service emails under a male alias - and why it actually worked How she used UGC creators from day one to fill the feed with different faces, ethnicities, and hair types so the brand didn't rely on just her The Black Friday disaster that made a year's revenue in one week - then nearly broke her entire operation Why she kept deleting the investor email from Capital Influence because she thought it was a Facebook scam What finally convinced her to give up equity - and why it was about experience, not money The "create your own bundle" feature that raised average order value without a single extra product Why she celebrates copycats - and the mindset that keeps her focused on what's next instead of what's being copied If you're an early stage DTC founder, a content creator thinking about launching your own product, or trying to figure out how to turn a loyal audience into actual sales without burning the trust you've built, this conversation will fundamentally change how you think about community, launch strategy, and what it really takes to go from house deposit to eight figures. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH YASMINA ELMERKAOIU Instagram → https://www.instagram.com/mrs.yasmina/ LinkedIn → https://www.linkedin.com/in/yasmina-elmerkaoui-191b69262/ Website → https://merkaou.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 16 Jul 2026 - 685 - 683: (Solo) The Expense Audit That Could Save Your Brand Thousands This Year
This is not a growth hack. It is not going to go viral on a Twitter thread. But I genuinely believe it is one of the highest leverage things you can do for your brand right now, and most founders never do it properly because it is not exciting. Here is what a mentor told me years ago that I keep coming back to: a dollar saved is a dollar earned. And depending on your margins, that dollar saved is probably worth $1.30 or $1.40 on the bottom line. In this episode, I walk you through a full line by line expense audit covering every major cost area in a typical e-commerce business, the same process we have run at Foundr that has saved us tens of thousands of dollars a month. Here's what you'll take away: Why the average growing Shopify store is paying for 15 to 30 apps but actively using only eight of them, and how to fix that fast How to negotiate your SaaS tools, 3PL rates, merchant fees, and supplier costs in ways most founders never think to try Why agency retainers are one of the most expensive line items you can cut, and what to build in-house instead How to use AI and Claude Code to replace tools and creative spend that is quietly draining your budget every month The Meta ads Net 30 arrangement that can make a significant difference to your cash flow if you are spending at scale Why businesses waste an average of 26% of their marketing budget on campaigns that are not performing, and where to redirect it If your margins are tighter than they should be or you have not done a proper audit in the last six months, this episode will show you exactly where to look and what to do about it. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 13 Jul 2026 - 684 - 682: From $2M in Debt to a $250M Gum Company | Pur Gum
Jay Klein lost $2 million on a gum nobody wanted. He sold the remaining stock to a pig feed company for $13,000 - then used every cent of it to launch Pur. Sixteen years later, Pur is the fastest-growing gum in North America, the #1 selling gum on Amazon, sells in over 50 countries, and does over $250 million in retail sales annually. All bootstrapped. All founder-owned. And built in a $20 billion industry controlled by fewer than ten giants who still haven't managed to take him out. In this interview, the founder of The Pur Company breaks down how he discovered his winning product insight for free at 30,000 feet, why he deliberately ignored Walmart and Tesco to win thousands of tiny independent stores first, and how he absorbed a brutal 39% tariff - without raising a dollar or passing a cent to his customers - and still grew 30% that year. What you'll learn in this interview: • How losing $2 million on his first gum brand rewired everything - and why getting back to zero was his greatest victory • The airplane focus group: how he discovered the aspartame insight for free that became the entire Pur thesis • Why he targeted independent health food stores instead of big retailers - and the "major league attitude in a minor league setting" strategy behind it • How he convinced his manufacturer to extend 30-day credit on a $250K first order with only $13K to his name • The "assemble the crumbs to make the cookie" philosophy: why Pur has never been built on a single big retail relationship • How duty free airports became his global expansion engine - and why he treated them like his version of New York City • Why he turned down the Dragon's Den deal even after it went through - and what he got out of it anyway • The 39% Swiss tariff crisis: how he absorbed the full hit rather than disrupt his retail relationships - and why scale actually amplified the problem instead of solving it • Why he keeps the lowest possible balance in his checking account on purpose - and what it does for his hunger as a founder • What he looks for now as a Dragon's Den investor: the two things that matter before any unit economics conversation If you're building a CPG or retail brand, trying to figure out how to grow without giving away equity, or looking for the real story behind what bootstrapped category-building looks like across 16 years and 50 countries, this conversation will fundamentally change how you think about distribution, resilience, and what it means to outwork the competition one crumb at a time. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH JAY KLEIN Instagram → https://www.instagram.com/iamjayklein/ LinkedIn → https://www.linkedin.com/in/jay-klein-92b93319/ Website → https://thepurcompany.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 09 Jul 2026 - 683 - 681: Dr. Angela Spent $350K Building The Skincare Brand Her Daughters Needed — Now It Does $40K/Month
Dr. Angela Casey spent nearly 15 years treating skin cancer before she had her business idea. She didn't come from entrepreneurship - she came from molecular biology, medical school, residency, and a clinical practice. When the idea hit her, it was so obvious she couldn't believe nobody had done it properly. She searched every major retailer - Ulta, Sephora, Target, Walmart, Macy's - and found nothing worth recommending to her own three daughters. A Macy's assistant tried to sell her 12-year-old an anti-aging eye cream. Bright Girl was the answer to that gap, and it cost her $350,000 and three years to bring it to life. In this episode, Angela gets completely honest about what it takes to launch a product the right way from scratch - the hundreds of surveys, the thousands of patient conversations, the Covid shipping crisis that sent her costs up six times overnight, and what nearly $120,000 in packaging sitting in a warehouse actually feels like when you're still flying the plane as you build it. What you'll learn in this interview: How Angela validated Bright Girl before spending a cent - surveying hundreds of people on SurveyMonkey, questioning thousands of patients over two years, and physically visiting every major beauty retailer to confirm the gap was real Why she interviewed dozens of cosmetic chemist teams around the world before finding the right fit - and how three years of clinical research meant she only needed three rounds of formula revisions The real cost of a custom, premium launch: $50K for the first filled run, $120K when you include the 36,000 empty bottles in reserve, and $350K all in when you add branding and design What it felt like to order 40,000 bottles and jars across four SKUs in 2020 - just as Covid hit and shipping costs multiplied by six Why she spent the first year of DTC sales proving market fit before ever approaching dermatology practices as a distribution channel - and why that sequencing mattered The exact moment she knew the product had real credibility: when other dermatologists - notoriously skeptical of new skincare brands - started recommending Bright Girl not just to patients but for their own children How selling through dermatology practices built the trust that made mass retail possible - and the retailers Bright Girl is now stocked in Why Amazon, launched just over a year ago, is now growing at 10-20% month over month - and how TikTok Shop became an unpredictable but consistent additional channel The email marketing lesson from her Founder mentor that unlocked 15-20% of website revenue from a channel she had barely touched What two full-time jobs actually looks like - five days a week in clinical practice, seven days a week on Bright Girl - and the non-negotiable routines that hold it together If you're early in your journey and wondering whether your idea is good enough to back with serious money and serious time - Angela's story is a masterclass in what deep validation actually looks like before you commit. She still wants more. She's her own harshest critic. But $40K a month on a brand she built from scratch with zero business experience, while running a full medical practice, is not nothing. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY DR ANGELA CASEY Instagram → https://www.instagram.com/brightgirlbeauty/ Angela's Instagram → https://www.instagram.com/angelacaseymd/ Website → https://brightgirl.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 08 Jul 2026 - 682 - 680: (Solo) The Thing Nobody Tells You About Building a Business Alone
After interviewing over 700 founders, including more than 100 billionaires, I kept noticing something that never made it onto the podcast. When the recording stopped and I asked privately how they were really doing, so many described the same thing. The weight of carrying something you cannot put down and cannot hand to anyone else. Here is the truth I wish someone had told me earlier: entrepreneurs are five and a half times more likely to experience loneliness than the general population. And the founders who are struggling the most are almost always the last ones to say anything about it. In this episode, I share things I have never talked about publicly before, including losing half a million dollars in a single month, showing up for my team the next morning like nothing happened, and what losing my best friend Aaron taught me about what actually matters on this journey. Here's what you'll take away: Why founder loneliness is not about being physically alone, and why that distinction makes it so much harder to recognise and address The moment that almost broke me at Foundr, and what it actually felt like to carry it without anyone to call Why the skill of showing up calm and projecting confidence eventually becomes a wall that keeps out the people who could actually help What Scooter Braun, Steve Huffman, and the co-founder of Airbnb all said privately about whether it ever feels like enough Why the wins can feel just as isolating as the hard moments, and what to do about that The one thing that has made the biggest difference: surrounding yourself with founders who are a few steps ahead of where you are right now If you have been carrying something heavy lately and telling everyone it is fine, this episode is for you. The gap between what you are actually feeling and what you let anyone see will keep growing unless you actively close it. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 06 Jul 2026 - 681 - 679: The $20 Jar of Salt Behind Her 9-Figure Jewelry Brand
Jennifer Fisher started with $5,000 and a dog tag she sketched on a piece of paper for her son - a son she almost never had, after chemotherapy, failed IVF, and years of surrogacy attempts. She knocked on doors on 47th Street, got Uma Thurman to wear her piece on a Glamour cover, and bootstrapped the brand for 20 years without taking a single dollar from investors. Now Jennifer Fisher Jewelry is on track for nine figures, growing 50% year over year, and targeting 200-300% growth by 2028 - with a $20 jar of salt as her secret customer acquisition weapon. In this interview, Jennifer breaks down the Instagram pivot in 2017 that tripled sales overnight, how 6% of salt buyers convert to jewelry customers, and the manufacturing mistake she made after Covid that nearly broke the entire business. What you'll learn in this interview: • How a dog tag she sketched for her son became Hollywood's go-to jewelry brand - starting with Uma Thurman on a Glamour cover • Why she launched DTC before Shopify existed - and what running a jewelry brand on Magento in 2005 actually looked like • The 2017 Instagram pivot: how showing her real life - cooking, dogs, kids - tripled sales overnight • How a $20 jar of salt she made in her kitchen became a full customer acquisition funnel - with 6% of buyers converting to jewelry • Why founder-led creative outconverts every influencer she's ever worked with - and why she still does it all herself • The manufacturing mistake that nearly broke her: why not moving production out of NYC fast enough after Covid was her biggest business regret • How a JV with Centric Brands unlocked the operations, manufacturing scale, and systems she couldn't build alone in 20 years • Managing 4,000 SKUs (cut from 10,000) - and the inventory planning challenge that still costs her sales every season • Why she's launching men's jewelry, silver, sunglasses, and home as category expansions - and how she decides what's actually her • What surviving chemo, years of IVF, and the loss of her father taught her about handling fear in business If you're building a DTC fashion or lifestyle brand, trying to figure out how founder-led content and creative actually works at scale, or just want 20 years of hard-won bootstrap lessons from someone who built nine figures without ever raising a round, this conversation will fundamentally change how you think about brand building, customer acquisition, and what it means to show up as yourself. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH JENNIFER FISHER Instagram → https://www.instagram.com/jenniferfisher/ Website → https://jenniferfisher.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 02 Jul 2026 - 680 - 678: (Solo) The First Hire Mistake That Trips Up Almost Every Solo Founder
Most founders make their first hire reactively. They're overwhelmed, stretched across every function, and they just want someone to take the pressure off right now. So they bring in a generalist, hand them a list of everything they hate doing, and a few months later they're more frustrated than before. Here's the problem: hiring to relieve pressure is not the same as hiring strategically. And when you get it wrong early, it doesn't just cost you money. It costs you trust in the whole process of building a team. In this episode, I walk through the framework I wish I had when I made my first hire at Foundr, including the question that reframes the whole decision, why attitude always beats skill, and how to use freelancers and AI agents to buy back time before you are ready to bring on a full time team member. Here's what you'll take away: • Why hiring reactively is the most common and most expensive mistake solo founders make • How to identify what only you can do in the business, and why that answer should drive every hiring decision • Why focusing on outcomes instead of tasks completely changes how you set a new hire up to succeed • The case for starting with freelancers and AI agents before committing to a full time salary • How to run a test project that actually tells you whether someone is the right fit before you sign them on • Why trust is earned over time and what happens when you hand over too much too fast If you are doing everything yourself right now and wondering whether it is time to bring someone on, this episode will give you a clear framework for making that call and help you avoid the mistakes that set most first hires up to fail. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 29 Jun 2026 - 679 - 677: We Built a $250M Cold Plunge Brand - From a Garage | Plunge
Ryan Duey was living in an RV with his float spas closed and no backup plan when he and Michael Garrett built their first cold plunge from a retrofitted $100 bathtub in a garage. They turned their Shopify store on with zero marketing—and got a sale. What followed was one of the most unlikely scaling stories in DTC history: $30 million to $80 million in a single year, $250 million in cumulative revenue, four sharks bidding on Shark Tank, and a category they essentially created from scratch—all bootstrapped, all assembled in-house in California. In this interview, the co-founders of Plunge break down the real cost of scaling a high-ticket inventory business, why they lost an estimated $20 million in revenue from lead times alone, and the organic influencer strategy that built the brand before they ever ran a paid ad. What you'll learn in this interview: • How they got their first sale with zero marketing—and the Black Friday that showed them how big this could get • The cash flow trap every inventory-heavy founder hits: why a great P&L and an empty bank account can exist at the same time • How customer prepayments funded growth for years—and what forced the switch to holding inventory • Why long lead times cost Plunge an estimated $20 million in lost sales • From buying parts on Amazon to co-designing a custom chiller in China—the full supply chain evolution • How a single Instagram comment to Aubrey Marcus started a chain of organic gifting to Huberman, Tony Hawk, and Rich Roll • The Shark Tank deal that never closed—and why they still got the PR, the airing, and the exposure • How they bought plunge.com from a New Orleans jazz band for $250K—and why the trademark was the bigger win • Why nearly half of all orders close through a phone call or SMS, not a checkout button • How they raised $1.3 million from their own customers in under two weeks via Wefunder If you're building a high-ticket DTC brand, navigating the brutal cash flow realities of an inventory-heavy business, or trying to grow without burning cash on paid ads before you're ready, this conversation will fundamentally change how you think about scaling, supply chain, and what it actually takes to build a category from a garage. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH RYAN DUEY Instagram → https://www.instagram.com/ryanaduey/ Website → https://plunge.com/ CONNECT WITH MICHAEL GARRETT Instagram → https://www.instagram.com/michaelrgarrett/ Website → https://plunge.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 25 Jun 2026 - 678 - 676: Alisha Spent 16 Years In Salons - and Distilled it all Into One $7K/Month Product
Alisha dropped out of year 10 to become a hairdresser, opened her own salon at 20, and ran it for nearly a decade - applying five different products to every client's hair, every single day. By the time she sold the salon, she already knew exactly what was wrong with the industry. What she didn't know was how to start an e-commerce brand. James Jade, her all-in-one leave-in conditioner that replaces up to five separate products, took two years and close to $21,000 to get off the ground. She doesn't regret a cent of it. In this episode, Alisha walks through the full build - the custom formula she landed on her second sample, the five delays before launch, and the first two years of selling almost entirely through word of mouth, mystery notes left in cafe bathrooms, and conversations at the World Surf League. She gets honest about what held her back, how slow it actually was, and what finally started to move the needle. What you'll learn in this interview: How 16 years on the salon floor became the most credible form of product validation - and why Alisha already knew her formula before she ever met a cosmetic chemist Why she got the formula right on the second sample when most founders go through 20 - and the one thing that was actually the hardest to nail The real cost of custom formulation: $7,000 for packaging, ~$14,000 for 1,000 units at $15 a bottle, and why she was told to double her budget - and it ended up being triple What she did during the two years between starting development and actually launching, including freelancing to fund each invoice one at a time Why refusing to be the face of the brand in the early days made everything slower - and the exact moment she realised the product alone wasn't enough The scrappy, offline community tactics that built early brand awareness - leaving minis in nice bathrooms, mystery notes in cafes, street conversations at events How she started posting four times a week on Instagram with no ads, no influencers, and no email marketing - and what eventually changed The decision to build weekly emails around real hair advice rather than promotional content - and why her salon background made this the easiest part of the whole business Why she waited until she'd recouped her initial investment before developing the shampoo - and what the waitlist looks like before it's even launched Lessons from nearly $21K invested in a first run, five launch delays, and two years of slow, deliberate building before the business started to accelerate If you're in the early stages and wondering whether the slow growth means you're doing it wrong - this episode is for you. Alisha's story is a reminder that domain expertise is an unfair advantage, that the long, unglamorous build is often the only way to get it right, and that $7K a month on a single product with a shampoo waitlist already building is not a small thing. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH BY ALISHA JADE Instagram → https://www.instagram.com/jamesjade.au/ Alisha's Instagram → https://www.instagram.com/alishajades/ Website → https://jamesjade.com.au/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Wed, 24 Jun 2026 - 677 - 675: (Solo) The Money Mistake That's Quietly Killing Your Business
I've wasted so much money over the years running Foundr that I don't even want to know the number. And if I'm honest, it came down to one thing: when it's the business's money, it doesn't always feel like yours. So you spend it like it isn't. Here's the problem: when your personal and business finances are tangled up together, revenue starts to feel like income, a good month makes you feel like you can relax, and before long the business account becomes a piggy bank. You can't read your own numbers, you can't make good decisions about hiring or inventory or marketing, and you have no real idea what the business actually has. In this episode, I share the exact framework I wish someone had handed me earlier, including the Profit First model, how to pay yourself properly, and the software audit we just ran at Foundr that is saving us tens of thousands of dollars a month. Here's what you'll take away: Why treating business money as separate from personal money is harder than it sounds, and what it actually costs you when you get it wrong How the Profit First model works: splitting every dollar that comes in across dedicated accounts for tax, operating expenses, and profit Why paying yourself a fixed salary, even a modest one, forces you to run the business like a real business The one question to ask before any significant spend: can I measure the return against the risk? How a simple software audit can uncover thousands of dollars quietly leaking out every month Why a quarterly P&L review with an external accountant is one of the highest leverage habits a founder can build If your business finances and personal finances are still mixed together, or you have money in the bank but no real clarity on what the business actually has, this episode will give you a clean, practical system to fix that and start making decisions from a place of clarity. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 22 Jun 2026 - 676 - 674: From $800 to $250M Selling Women's Fashion | Demi Marchese
Demi Marchese started with $800, no investors, and no fashion background—just a clothing rack in the back of her car and 30 sororities to pitch in 30 days. She made $40,000 in her first month dressing girls for Coachella out of her living room, turned $800 into $40K, and never took a dollar from investors. Ten years later, 12th Tribe does close to $50 million a year with $250 million in lifetime revenue—fully founder-owned, profitable, and competing head-to-head with VC-backed brands like Fashion Nova and Revolve that have raised over $100 million. In this interview, Demi breaks down the contrarian playbook she calls "living in the group chat," the mass micro-influencer strategy that turned free product into serious revenue, and what it actually looks like to build a fashion brand from the ground up with no money, no partner, and no safety net. What you'll learn in this interview: • How she made $40K in 30 days dressing girls for Coachella out of her car and living room • Why vintage thrifting at 90–95% margins funded her first $1–2 million—and when it became impossible to scale • The "living in the group chat" strategy: how she anticipates what customers want before they know they want it • Why founder-led content has consistently outperformed every other ad format at 12th Tribe • The mass micro-influencer playbook: how to reverse-engineer gifting volume from revenue goals and posting rate • How she balances one big six-figure creator launch per month with mass micro gifting—and what actually converts • Why she's leaning offline as everyone else leans into AI—and the Tribe Table dinner series building real community • What a warehouse crisis during peak season taught her about crisis communication and customer retention • The imposter syndrome of being a 24-year-old solo founder running eight figures—and what finally made it go away • Why she competes on soul, storytelling, and founder personality—not ad spend—against brands with 100x her funding If you're building a DTC fashion or lifestyle brand, trying to grow profitably without outside capital, or looking for the real story behind what founder-led marketing actually looks like at scale, this conversation will fundamentally change how you think about community, content, and what it means to build a brand with genuine soul. SAVE 50% ON OMNISEND FOR 3 MONTHS Get 50% off your first 3 months of email and SMS marketing with Omnisend with the code FOUNDR50. Just head to https://your.omnisend.com/foundr to get started. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ CONNECT WITH DEMI MARCHESE Instagram → https://www.instagram.com/demimarchese/ LinkedIn → https://www.linkedin.com/in/demimarchese/ Website → https://www.12thtribe.com/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Thu, 18 Jun 2026 - 675 - 673: (Solo) Your Next Team Member Might Not Be Human
Most founders are still thinking about AI as a faster way to do their work. But that is not what is happening anymore. AI agents do not help you do the task. They do the task for you. And if you have not started asking which roles in your business actually need a human, you are already behind. Here is the thing: this is not a big tech problem or a future problem. Small and medium sized businesses are rebuilding their teams around this right now, and the ones doing it well are not replacing people for the sake of it. They are freeing up their human team to focus on the things that actually require judgment. In this episode, I break down what AI agents actually are, how we are using them at Foundr across customer support, lead qualification and ad optimisation, and the practical first steps any e-commerce founder can take today. Here's what you'll take away: Why AI agents and AI tools are completely different things, and why that distinction changes how you think about hiring How one founder cut his team from 48 to 30 people, replaced four software subscriptions, and saved $250,000 a year without losing any revenue How Klarna deployed a single AI agent to do the work of 700 customer service reps The repeatable, process-driven roles in every e-commerce business where agents are already outperforming humans Where to start if you are a solo founder or small team: the customer support use case that pays off fastest The one question to ask before every single hire from this point forward If you are growing your team right now or thinking about your next hire, this episode will completely change how you evaluate that decision and what a lean, high-output operation can actually look like in 2026. If you're loving this solo series, I'd love to hear your feedback. Email me directly at nathan@foundr.com — I read every reply. Hope you enjoy it. WANT TO GROW YOUR BRAND WITH META ADS? Join the Foundr Operators Waitlist → https://foundr.com/operators HOW WE CAN HELP YOU SCALE YOUR BUSINESS FASTER Learn directly from 7, 8 & 9-figure founders inside Foundr+ Start your $1 trial → https://www.foundr.com/startdollartrial PREFER A CUSTOM ROADMAP AND 1-ON-1 COACHING? → Starting from scratch? Apply here → https://foundr.com/pages/coaching-start-application → Already have a store? Apply here → https://foundr.com/pages/coaching-growth-application CONNECT WITH NATHAN CHAN Instagram → https://www.instagram.com/nathanchan LinkedIn → https://www.linkedin.com/in/nathanhchan/ FOLLOW FOUNDR FOR MORE BUSINESS GROWTH STRATEGIES YouTube → https://bit.ly/2uyvzdt Website → https://www.foundr.com Instagram → https://www.instagram.com/foundr/ Facebook → https://www.facebook.com/foundr Twitter → https://www.twitter.com/foundr LinkedIn → https://www.linkedin.com/company/foundr/ Podcast → https://www.foundr.com/podcast
Mon, 15 Jun 2026
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