Bootstrap First, Raise Money Later: Senraj Soundar, CEO of ConnectLeader (Part 2)

Sramana Mitra: What was the product? Can you talk a bit more about what was the product that you took that long to build?

Senraj Soundar: A good sales representative working hard typically makes 60 to 80 dials on average, but he could talk to only three to four decision makers or prospects. The challenge is that it takes about 20 plus phone calls to get one person live on the phone. All the remaining 19 won’t go anywhere.

If you do the math, about 90% of the phone time is all wasted time for the sales rep. Only 10% of that phone effort yields a >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 6)

Sramana Mitra: From a consumer’s point of view, it’s confusing. How do you convey that there’s something that is worth paying a premium for?

Eric Shannon: We just have a standard reply. We’re not going to reference any competitor directly here. All we can say is do your research, check their warranty, do they have any background in the pet industry? It’s the whole private-label thing, which I think is a scummy business to be in because you’re not really adding any value to the world whatsoever. This is going to be one of Amazon’s biggest problems going forward. You have 45 people all selling the same rubber spatula just with different brand >>>

Bootstrap First, Raise Money Later: Senraj Soundar, CEO of ConnectLeader (Part 1)

If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. 

Senraj has bootstrapped his company to over $10M in revenue and is contemplating raising some growth capital now. He will, most likely, have numerous offers from investors. We love stories like this that reinforce our philosophy: “Do not go to VCs as beggars, go as kings!”

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?

Senraj Soundar: I was born and brought up in India, particularly in Southern India. I got my Bachelor’s degree in Electrical >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 5)

Sramana Mitra: How long did it take you to get up to a point where banks were willing to give you lines of credit for inventory?

Eric Shannon: We never had a problem. I never got a no when I asked. By the time I asked, we were well in the seven figures in revenue. I was getting offers before that. The two that I can think of off the top of my head was once I started getting sales, we had a company called Kabbage.

Sramana Mitra: I know Kabbage very well. We’ve covered them extensively. In the kind of work that you do, >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 4)

Sramana Mitra: How long did it take you to get to a million dollars in revenue, and was that how you got to a million dollars in revenue?

Eric Shannon: The first 12-month period in which we did a million dollars in revenue was probably 75% Amazon.

Sramana Mitra: Got it. What was the second channel after Amazon?

Eric Shannon: The second channel was our own website based on the strength of Facebook. >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 3)

Eric Shannon: In my previous business, we had worked with a guy who has a workshop in California. This guy is just a world-class expert when it comes to polyurethane, which is what foam is made of. In his workshop, he’s been making furniture and bedding since the late 1970s.

I went to him and said, “Here’s what I’m looking to do. I’m looking to do a bed and I’m looking for a manufacturing partner to make this for me. The specifications are, number one, it has to be big enough for big dogs. Forget about the flattening issue. Most beds that were being made just, literally, didn’t have enough surface area to contain a Mastiff or a Great Dane. >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 2)

Sramana Mitra: What kind of trajectory was that company on? You were doing e-commerce?

Eric Shannon: Yes, exactly. It was strictly dog supplies and things that you couldn’t find at the pet store.

Sramana Mitra: For example, what were you selling?

Eric Shannon: The same categories that you would find at a pet store. We were sourcing products from very small mom-and-pop boutique manufacturers. It was at the higher-end of the price spectrum. It was primarily search engine driven. We didn’t >>>

Bootstrapping a Niche E-Commerce Brand: Big Barker CEO Eric Shannon (Part 1)

If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. 

We’ve talked about niche, proprietary e-commerce brands and how entrepreneurs are building businesses around different concepts. Eric shares the story of Big Barker, a dog bed for large dogs.

Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?

Eric Shannon: I was born in Pennsylvania in a suburb about 45 minutes outside of Philadelphia. I went to Temple University. I was a Finance major. After school, I moved to California and took a job in banking. I hated it and was terrible at it. I had a >>>