Loading...
Answers
MenuWhat is the needed budget to start a succesful private brand like allbirds or happyskinco or snow teeth whitening.?
This question has no further details.
Answers
That's a huge question that can only be answered with the "depends" word! But a good way to start is to look at the market. Doing a market analysis to give you an idea about the demand and competitors would be a good way to start.
Then look at your production costs - is this a product you can license, resell, or do you need to create from scratch?
Then, of course, the administrative, setup and foundational needs will be front-loaded, so be prepared.
That's where I would recommend you begin, and that will help to start framing the idea of whether you are talking about $1MM, $100k, or $1k...
-JL
Allbirds is pretty straight forward if you do your online research, this article is a casestudy of allbirds, https://www.privy.com/blog/allbirds, you will see that he started out raising money through a kickstarter $119K and 2 years later after testing and lab work he launched with a marketing budget of $400K. Brand Strategy alone can run $50K and then you have to add on identity design, product design packaging, and online sales. All of this creates the full brand plan from strategy, design, production and website for $100K package then you would pay additional for a Marketing/Social and Sales launch.
As for happyskinco, they are a shopify site and product development brand that would start with Brand & Product Strategy work, I would say you would want at least a $60-80K budget to launch a similar brand and I would focus on Kurt Elster to help me develop the shopify site -https://ethercycle.com/
Hope this helps you to see the two brands you referenced have a well developed brand and it took allbirds since 2014 to grow the brand and presence.
Branding is a process NOT a single event.
A private label business continues to sound more and more like a lucrative venture as time goes by. Private labelling can indeed be a gold mine – if you know what you are doing. The truth is times are changing and the money you would have needed to establish a private label brand a few years ago now will not be enough. To succeed in a private labelling business, one of the most important things is an adequate capital base. For this to be attainable, you need enough money to secure a large inventory of your product, create a good brand and market it well. The reality is that not all qualified manufacturers or suppliers choose to list themselves in B2B sourcing platforms or directories, another option to find a reliable private label manufacturer is to hire a reputable sourcing agent or work on joint order with the sourcing departments of some worldwide retailers. You can therefore focus on other aspects of your business while starting out and enjoy Prime Eligibility of your product. Also, you have no inventory to call upon when there is a product shortage from the supplier, which can be very risky. This is where you are in full control of the handling of your product. You take care everything from inventory and packaging to shipping the product to the customer. With this control, you are always aware of what you have at hand, so you can avoid making false promises to customers.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
-
What legal precautions can I take to make sure nobody steals my startup idea?
I've discussed ideas with hundreds of startups, I've been involved in about a dozen startups, my business is at $1M+ revenue. The bad news is, there is no good way to protect ideas. The good news is, in the vast majority of cases you don't really need to. If you're talking to people about your idea, you could ask them to sign an NDA ("Non Disclosure Agreement"), but NDAs are notoriously hard to enforce, and a lot of experienced startup people wouldn't sign them. For example, if you asked me to sign an NDA before we discussed your Idea, I'd tell you "thanks, but no thanks". This is probably the right place though to give the FriendDA an honorable mention: http://friendda.org/. Generally, I'd like to encourage you to share your Ideas freely. Even though telling people an idea is not completely without risk, generally the rewards from open discussions greatly outweigh the risks. Most startups fail because they build something nobody wants. Talking to people early, especially people who are the intended users/customers for your idea can be a great way to protect yourself from that risk, which is considerably higher than the risk of someone taking off with your idea. Another general note, is that while ideas matter, I would generally advise you to get into startup for which you can generate a lot of value beyond the idea. One indicator for a good match between a founder and a startup is the answer to the question: "why is that founder uniquely positioned to execute the idea well". The best way to protect yourself from competition is to build a product that other people would have a hard time building, even if they had 'the idea'. These are usually startups which contain lots of hard challenges on the way from the idea to the business, and if you can convincingly explain why you can probably solve those challenges while others would have a hard time, you're on the right path. If you have any further questions, I'd be happy to set up a call. Good luck.DK
-
What do (bootstrapped) startups offer to new sales hires? Commission only? What are some good examples to keep people motivated and still survive?
Generally bootstrapped startups should avoid salespeople, for a few reasons: a. they typically can't afford the base and overall comp required to attract sales people who can actually sell / or afford to support them with marketing, management, etc b. it will be very difficult to find the rare person with the right mix of sales and startup DNA along with the critical domain knowledge, consequently the startup is likely to settle c. the founders need to be very involved in the selling and customers will demand it That said, if the plan is still to hire a salesperson, find someone who has demonstrated sales success in startups and is excited by the early stage in company building. Create a comp plan heavily leveraged on sales results (unless you are in an industry where 100% commission is a common practice, would recommend against $0 base as this creates the false impression that your hire isn't passing time with one company while looking for another job with a richer comp plan - you want your rep focussed). Sell the vision and opportunity to be part of a growth story. I have written a several blog posts on hiring sales people into start-ups. You might find these useful: http://www.peaksalesrecruiting.com/ceo-question-should-i-learn-to-sell-or-hire-a-sales-person/ http://www.peaksalesrecruiting.com/start-up-sales-and-hiring-advice-dont-stop-selling-once-you-hire-your-first-sales-rep/ http://www.peaksalesrecruiting.com/hiring-start-up-sales-reps/ http://www.peaksalesrecruiting.com/startups-and-salespeople/ Good luck!EB
-
What is the average series A funding round at pre revenue valuation for a enterprise start up w/cutting edge tech on verge of our first client.
With all respect to Dan, I'm not seeing anything like that. You said "pre-revenue." If it's pre-revenue and enterprise, you don't have anything proven yet. You would have to have an insanely interesting story with a group of founders and execs on board with ridiculous competitive advantage built in. I have seen a few of those companies. It's more like $3m-$5m pre. Now, post-revenue is different. I've seen enterprise plays with $500k-$1m revenue/yr, still very early (because in the enterprise space that's not a lot of customers yet), getting $8m-$15m post in an A-round. I do agree there's no "average." Finally, you will hit the Series A Crunch issue, which is that for every company like yours with "cutting edge tech" as-yet-unproven, there's 10 which also have cutting edge tech except they have customers, revenue, etc.. So in this case, it's not a matter of valuation, but a matter of getting funded at all!JC
-
What does it mean to 'grandfather you in' in the tech world?
It stands for allowing someone to continue doing or use something that is normally no longer permitted (due to changing regulations, internal rules etc.)OO
-
How much equity should I give an engineer who I'm asking to join my company as a co-founder? (He'll be receiving a salary, too, and I'm self-funding)
You will find a lot of different views on equity split. I haven't found a silver bullet. My preference/experience is for: 1. Unequal shares because one person needs to be the ultimate decision maker (even if it's 1% difference). I have found that I have never had to use that card because we are always rational about this (and I think us being rational is driven because we don't want a person to always pull that card cause it's a shitty card to pull) 2. When it comes to how much equity, I like Paul Graham's approach best: if I started the business by myself, I would own 100% of the equity; if xxx joined me, he/she would increase my chances of success by 40% (40% is just an example) at this moment in time. Therefore, I should give him/her 40% of the company (http://paulgraham.com/equity.html) 3. In terms of range, it could go between (15-49%) depending on the level of skill. But anything less than 15%, I would personally not feel like a cofounder 4. Regarding salary and the fact that you will pay him/her, that's tricky but a simple way to think about it: If an outside investor were to invest the equivalent of a salary at this exact moment into the startup, what % of the company would they get? (this may lowball it if you think the valuation is high but then again if you think you could get a high valuation for a company with no MVP, then you should go raise money) One extra thing for you to noodle on: given you are not technical, I would make sure a friend you trust (and who's technical) help you evaluate the skill of your (potential) cofounder. It will help stay calibrated given you really like this person.MR
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.