Crowdfunding isn’t something I teach students about when they’re starting an online store. In fact, I remind them they don’t need a big product idea to get started. But sometimes, a product idea comes along that is worth pursuing even if it takes a little time and a different way of thinking.
That’s how it was for Angie White and her business partner, Betsy Mikesell.
How Beddy's Got Started
It all started with Betsy’s kids not making their bunkbeds. But when she headed to their room to show them how it was done, she ended up seeing just how frustrating (and painful—scraped knuckles are no joke!) the process was.
As Angie explains during our conversation on the How to Sell Online podcast, Betsy is a creative problem solver at heart. So the hairdresser-turned-inventor and her mom set about making something that would work: zippered bedding that allowed the comforter and sheets to go on at the same time. When she told her clients about what she’d created, they all said it was something they’d purchase.
Business Partners: Angie White & Betsy Mikesell
How Angie and Betsy became partners is a great story all its own. I also think it’s something every entrepreneur should hear long before they bring on a business partner. Partnerships aren’t always a success, but theirs is—in part because they each bring a different skillset to their work. Without that balance, Beddy’s (their company) might not be as successful as it is.
One of the first big hurdles Angie and Betty faced when getting Beddy’s products made was finding the right fabrics and the right manufacturer. They looked at companies in Utah, North Carolina and Los Angeles, but either they couldn’t do all the steps the pair needed, the quality wasn’t there, or the price was way too high. And when they finally did find an overseas manufacturer that created their ideal product, they found out that their first purchase order would have to be $250,000!
Ugh. That’s a lot of money for a small business, and it wasn’t something that either Angie or Betsy could cover even with the equity in their homes. They still needed $100,000. Rather than giving up, they went into problem-solving mode. They decided to see if crowdfunding would work for them, so they put it on Kickstarter.
What's Crowdfunding?
Okay—let’s talk a sec about what Kickstarter, or crowdfunding, is all about. It’s a fundraising method that involves raising small amounts of money from a large number of people, typically through an online platform. The project page on the platform gives info about the project or business, the amount of funding needed, and the rewards or perks that supporters will receive for contributing.
Once the campaign page is live, the project creator shares the page on social media, email lists, and other channels to encourage people to contribute. Supporters can typically contribute any amount of money they wish, and in return, they may receive a reward such as a product, service, or other benefit.
Crowdfunding campaigns usually have a set funding goal and a deadline. If the goal is not met by the deadline, the campaign is considered unsuccessful, and no funds are collected. However, if the goal is met or exceeded, the funds are released to the person or company that created the campaign.
One of the things that Angie shares about crowdfunding is an unexpected advantage it provided them: it was a great way to test market their products. For example, the feedback they got led them to produce Beddy’s not just for twin and full-size mattresses, as they’d first planned, but for larger mattresses as well.
Another lesson to take away from Betsy and Angie’s experience is that they didn’t stand still while they were waiting and hoping for their crowdfunding dollars to come through. They took their prototypes to local home shows and expos in their area, and encouraged people to support them on Kickstarter. They also went on local morning talk shows to share what their product was all about and again encouraged viewers to support their campaign.
Beddy's First Product Arrives
It worked. In April of 2014, their Kickstarter campaign funded, they put in their purchase order, and the first Beddy’s products arrived in August of that year.
The company has grown exponentially since that time thanks to great leadership, thanks to a willingness think outside of the box, and their focus on hiring great people with the right skills. Their success has even led to the creation of a separate business—a fulfillment company started by Angie and Betsy’s husbands.
Angie shares a lot of great ideas that you can start using in your own online store today. Listen in now.
Top 10 Takeaways
- Test your product to hear feedback and build excitement.
- Give people a call to action to drive them, let them know what’s coming, and get presales.
- Spoil your first customers.
- Use influencer marketing.
- Hire out customer service as fast as you possibly can.
- Fulfillment centers can help you manage your inventory.
- Your business may be a catalyst for someone else’s.
- Business builds confidence.
- “No” just means you need to find another way. Don’t give up.
- Just do the next right thing.
Additional Resources
Shop Beddys
- Website: www.beddys.com
- Follow on Instagram: @beddys
and on Facebook: @BeddysBeds
Connect with Alison:
- On Facebook: @alisonjprince
- On Instagram: @alisonjprince
- Learn about the 0-$100K System and how you can launch and grow your own online business here.
- Join the Print Sprint here.
