I discovered a guy making $4,800,000 selling bedsheets online with 6 employees.
That's a wake-up call!
Here's his story:
That's a wake-up call!
Here's his story:
Colin Mcintosh had a rough start in his career.
He was fired from his first job at the world's largest hedge fund after just 5 months, then laid off from his next two jobs all in the span of 2 years.
He was fired from his first job at the world's largest hedge fund after just 5 months, then laid off from his next two jobs all in the span of 2 years.
Why was he fired?
Because he was consistently told by his manager that he was “too empathetic to work here.” and “failed to adjust his behavior.”
Talk about a bad culture fit…
Because he was consistently told by his manager that he was “too empathetic to work here.” and “failed to adjust his behavior.”
Talk about a bad culture fit…
Eventually, Colin had a friend who got him a full time role working as a founder at a Techstars backed startup for a summer.
This was Colin’s introduction to startups which was the spark in his future bedsheet startup, Sheets and Giggles.
This was Colin’s introduction to startups which was the spark in his future bedsheet startup, Sheets and Giggles.
Here’s the steps Colin took to build his $4.8M company:
1/ Build the model first
Most founders create a product to solve a problem which may or may not be a viable business.
Colin reversed the strategy: built the business model, then designed a product that plugged into it.
Most founders create a product to solve a problem which may or may not be a viable business.
Colin reversed the strategy: built the business model, then designed a product that plugged into it.
This was the model Colin was searching for:
- Huge commodities market with room to differentiate
- No clear market leader
- No brand loyalty or affinity
- Traditionally physical retail that could work online as DTC
- Low-complexity supply chain (no electronics or software)
- Huge commodities market with room to differentiate
- No clear market leader
- No brand loyalty or affinity
- Traditionally physical retail that could work online as DTC
- Low-complexity supply chain (no electronics or software)
2/ Identify the differentiators
- The bed sheet industry was boring.
- Cotton is hard on the environment.
- There’s no innovation in the industry
- Very few companies doing great DTC marketing
Colin started looking to capitalize in this old “tired” industry.
- The bed sheet industry was boring.
- Cotton is hard on the environment.
- There’s no innovation in the industry
- Very few companies doing great DTC marketing
Colin started looking to capitalize in this old “tired” industry.
While researching sustainable bedding alternatives, Colin discovered that eucalyptus:
- uses 96% less water to produce than cotton
- requires no pesticides to grow and harvest
- can be sourced from reclaimed wood, not living trees
- uses 96% less water to produce than cotton
- requires no pesticides to grow and harvest
- can be sourced from reclaimed wood, not living trees
3/ Make it memorable
Colin was transforming a commodity product into a fun DTC company.
He didn’t just want to throw some ads up on Facebook, he wanted to build a lasting brand with a raving fan base.
Colin was transforming a commodity product into a fun DTC company.
He didn’t just want to throw some ads up on Facebook, he wanted to build a lasting brand with a raving fan base.
He did this by creating an incredible unboxing experience that made the product feel as premium as possible.
Outside: fun, whimsical, illustrative, colorful box with logo.
Inside:
- funny puns
- social call-to-action
- free surprises: knapsack that wraps the sheets + eye mask
- donation bag for customers' old cotton sheets (sheets & blankets are the #2 most-requested item at shelters)
Inside:
- funny puns
- social call-to-action
- free surprises: knapsack that wraps the sheets + eye mask
- donation bag for customers' old cotton sheets (sheets & blankets are the #2 most-requested item at shelters)
4/ Validated market
Colin launched an Indiegogo campaign raising $284,000 in 2018 and nearly $2M in venture capital.
Colin launched an Indiegogo campaign raising $284,000 in 2018 and nearly $2M in venture capital.
Sheets and Giggles used punny copy and humorous photos in their email campaigns.
They collected over 11,000 emails from potential customers in just 8 weeks AND 46% of people shared their emails.
Most DTC brands are lucky to get a 46% open rate.
They collected over 11,000 emails from potential customers in just 8 weeks AND 46% of people shared their emails.
Most DTC brands are lucky to get a 46% open rate.
5/ Presales
Colin started advertising on FB 10 weeks before launch.
He also implemented a social sharing competition to build his email list and asked customers to fill out surveys so he could predict the most wanted colors and sizes.
Result: $45,000 on Day 1 from 400 backers.
Colin started advertising on FB 10 weeks before launch.
He also implemented a social sharing competition to build his email list and asked customers to fill out surveys so he could predict the most wanted colors and sizes.
Result: $45,000 on Day 1 from 400 backers.
6/ Fanatical customer care
- S&G answers all Facebook comments and messages within minutes. Single best action that drives conversion
- Colin's cell used to be on the Contact page! Got ~10 calls/day
- Social media followers can win Amazon gift cards + free pizza + free sheets
- S&G answers all Facebook comments and messages within minutes. Single best action that drives conversion
- Colin's cell used to be on the Contact page! Got ~10 calls/day
- Social media followers can win Amazon gift cards + free pizza + free sheets
7/ Dominate Black Friday before it happens
Sheets and Giggles does Purple Friday: offering a 40% off sale the Friday before Black Friday.
This elevates their brand above Black Friday and Cyber Monday noise, advertising to customers before most other companies are.
Sheets and Giggles does Purple Friday: offering a 40% off sale the Friday before Black Friday.
This elevates their brand above Black Friday and Cyber Monday noise, advertising to customers before most other companies are.
8/ Key takeaways
- Model before you build
- Be contrary if it makes sense
- Choose a niche with no-to-low competition
- and lots of growth potential
- Put customers first, last, and always
- Get the jump in a crowded field with on-brand deals, social, SEO, referral programs
- Model before you build
- Be contrary if it makes sense
- Choose a niche with no-to-low competition
- and lots of growth potential
- Put customers first, last, and always
- Get the jump in a crowded field with on-brand deals, social, SEO, referral programs
If you enjoyed this thread and want to see more entrepreneurial stories and marketing insights, give me a follow @iamjakeschmidt
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