Preview Mode Links will not work in preview mode

EO 360°, a podcast by Entrepreneurs’ Organization, explores entrepreneurship with a wide perspective, moving beyond business to those insights not often shared by high-profile thought leaders.

Host and serial entrepreneur, Dave Will, leads in-depth interviews, whose featured guests include: Gazelles founder and CEO, Verne Harnish; popular podcast host and founder of Genius Network, Joe Polish; award-winning entrepreneur, Zahra Al-Harazi; and more. Tune into this top podcast made by entrepreneurs, for entrepreneurs.

Learn more about Entrepreneurs’ Organization, the leading peer-to-peer network exclusively for entrepreneurs.

Nov 29, 2016

Summary:

In this episode, Dave interviews David Heath, CEO and Founder of Bombas, a company that sells premium leisure athletic socks that do more than make your feet feel good—the make your feet have an impact. For every pair of socks sold, Bombas donates a pair to homeless shelters. Listen as David shares his thoughts on helping out the homeless, how Bombas actually got started, and why you should take little steps to make BIG leaps.

Time Stamped Show Notes:

  • 00:35 – Introducing David
  • 02:01 – There are 22 employees in David’s company right now
    • 02:20 – Hitting $12M revenue this 2016
  • 03:05 – Bombas’ 3000 sq ft office is based in Manhattan
    • 04:34 – Dave lives 3 blocks from his office
    • 04:53 – They pay about $43/square foot in monthly rent
  • 05:48 – Order fulfillment is done by a third party
  • 07:00 – Dave’s expectations for the business
    • 08:18 – When you’re in fast-growth mode, it’s hard to say where you’ll be in 12, 18 or 24 months
  • 08:32 – Dave on Tech vs Textile companies
  • 10:58 – How Dave started donating to homeless shelters
    • 11:46 – Dave didn’t start Bombas to create wealth for himself
    • 12:28 – Build a business to create impact
  • 13:35 – The multiples in a textile business
    • 15:10 – Gross margin at 60%
    • 16:01 – Operating margin at 30%
  • 16:35 – Dave and his partner, Randy’s exit strategy
  • 19:08 – It’s not about the $ figure, it’s more about where the potential business can go
  • 20:09 – 90% of people leave jobs not because of money
  • 21:07 – Dave raised $140K at Indiegogo 3 years ago to start Bombas
    • 22:17 – The product, story, and the brand just resonated
  • 24:17 – How Shark Tank found Dave
    • 25:51 – Details on the Shark Tank feature
    • 27:47 – “We had every intention of making a deal with any ‘shark’ we could”
    • 28:14 – Damon from Shark Tank as an advisor to Bombas
  • 30:08 – Dave, Randy, and Damon’s equity agreement
  • 31:10 – Negotiating and the diligence process
    • 32:18 – Starting the due diligence process
    • 33:44 – Dave did product development for 2 years
    • 34:35 – “It’s not easy but it’s not that difficult either”
  • 36:09 – All great things are achieved through little steps
  • 38:37 – Check out Dave’s website
  • 38:47 – Use code: EOVL25 to get 25% OFF of any 4 pairs on your first order

3 Key Points:

  1. Good business is about more than wealth accumulation–it’s about helping others.
  2. Exiting a business is all about deciding if you’re ready—it’s not a numbers thing.
  3. Little steps—across a long enough roads—will carry you a great distance.

Resources Mentioned:

Credits:

Show Notes provided by Mallard Creatives