In Episode #274 Nathan interviews Jason Greenspan, the founder and CEO of Whoosh!, a screen-cleaning product that’s on track to make over $5 million in sales this year. Listen as Jason and Nathan talk about creating a start-up with a physical product, what good margins look like, and how to convince people they have a problem.
- Favorite Book? – Purple Cow
- What CEO do you follow? — Kevin Plank
- What is your favorite online tool? — Pipedrive
- Do you get 8 hours of sleep?— Definitely not
- If you could let your 20 year old self know one thing, what would it be? — To start a business then! It’s much easier before you have responsibilities.
Time Stamped Show Notes:
- 01:20 – Nathan’s introduction
- 01:44 – Welcoming Jason to the show
- 01:54 – Whoosh! is a best-selling screen-cleaning spray and wipe
- 03:05 – Was on the Canadian version of Dragon’s Den
- 03:40 – Founded in 2009
- 03:50 – Pivoted in 2012 from making car-cleaning products
- 04:05 – Knocked a cleaning product onto his iPad by mistake
- 04:30 – Filled one-ounce bottles and handed them out at CES – never looked back
- 04:55 – Entirely self-funded and currently profitable
- 05:10 – Looking to raise $5 million this spring to fund growth
- 05:30 – Wiped over 1.5 million screens over the last year
- 06:30 – Total revenue in 2012 just under $1 million
- 06:39 – Total revenue in 2016 will be $5-10 million
- 07:00 – The formula is proprietary – they manage a supply chain
- 07:40 – The Whoosh! Go sells for $10 – what are the margins on that?
- 07:55 – Retailer takes a 25-50% gross margin
- 08:20 – A good gross margin on a physical product is 40-50%
- 09:02 – A good net margin is around 5%
- 09:35 – Spending very little on acquisitions
- 10:00 – We’re building through the wholesale channel – probably 90% of sales
- 10:24 – 10 full-time employees
- 10:40 – How do you value a product company?
- 10:50 – Valuation is on topline revenue and growth
- 12:30 – Whoosh! is a sticky product once people try it
- 13:20 – Biggest growth opportunity is convincing the market that there’s a problem
- 15:40 – Famous Five
3 Key Points:
- Grab opportunities when you see them. Whoosh! was founded by capitalising on an accident.
- Start your business now. Waiting longer isn’t going to make it easier.
- If you’re dealing with physical products, you should be making better than 5% margins.
- Freshbooks – The site Nathan uses to manage his invoices and accounts.
- Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
- Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
- Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
- Show Notes provided by Mallard Creatives