Brief Summary
This video tells the story of Aaron Spivak and Leor, two entrepreneurs from Toronto, who built a successful weighted blanket business called Hush. They started with a small investment of $4,000 and grew their business to $48 million in revenue within four years. Their journey was not without challenges, including a major slump in sales during the summer months and a near-shutdown of the business. However, they persevered and learned valuable lessons about customer feedback, product development, and the power of storytelling.
- The importance of customer feedback in product development.
- The power of storytelling in building a brand and community.
- The internet's role in leveling the playing field for small businesses.
The Early Days
Aaron, a serial entrepreneur, met Leor, who had experience in the online world. They decided to start an online business together. They identified a growing market for weighted blankets and began developing their own product while working full-time jobs. They launched their business in January and quickly gained traction, generating $30,000-$90,000 in monthly revenue.
The Summer Slump
The business faced a major setback during the summer months when sales plummeted to zero. They realized they had underestimated the seasonality of their product and had not adequately forecasted their inventory. This led to a cash crunch and a near-shutdown of the business.
The Customer Feedback Breakthrough
Faced with the possibility of failure, Aaron and Leor decided to reach out to their customers to understand why they had stopped buying. They discovered that the blankets were too hot for summer use. This led to a breakthrough idea: to create a cooling weighted blanket.
The Kickstarter Success
To fund the development of their new cooling blanket, Aaron and Leor launched a Kickstarter campaign. They set a modest goal of $25,000 but were overwhelmed by the response, raising over $1 million in the first 30 days.
The Dragon's Den Moment
The success of their Kickstarter campaign gave them the momentum to take their business to the next level. They decided to pitch their product on the popular Canadian TV show Dragon's Den. Their pitch was a success, becoming the first in the show's history to increase their valuation during the live pitch. This went viral on Netflix and catapulted the brand into the spotlight.
Building a Community
Aaron and Leor continued to focus on customer feedback and product development, launching a cooling pillow and expanding their product line to include bed sheets. They also opened a pop-up store in Canada, which was a huge success, attracting over 1,500 customers on opening day.
The Power of Storytelling
The success of Hush is attributed to the company's focus on storytelling. Aaron and Leor were transparent about their journey, sharing both the highs and lows with their customers. This created a strong sense of community and loyalty among their customers. They believe that storytelling is essential for building a brand and connecting with customers on an emotional level.
The Internet's Impact
Aaron and Leor believe that the internet has leveled the playing field for small businesses. It allows them to reach a global audience and compete with larger companies. They emphasize the importance of using the internet to tell your story and connect with your customers.
