Bootstrapping with a Paycheck: DefinitiveDeals Founder Mattias Larson (Part 2)

Sramana Mitra: What happens after that?

Mattias Larson: Then I landed in Stanford, Connecticut. That’s where my US journey started. I still worked for that same Swedish software company. They are yet to open an office in the US. They needed someone with technical expertise in this particular product. I came in over to train. It was a very technical solution.

Sramana Mitra: How does the story arrive at the DefinitiveDeals story?

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Bootstrapping with a Paycheck: DefinitiveDeals Founder Mattias Larson (Part 1)

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

We’re seeing a clear trend towards bootstrapping digital startups while holding onto a full-time job. Mattias Larson has a simple but powerful story to tell.

Sramana Mitra: Mattias, tell us about you. Where did your journey begin and in what kind of background?

Mattias Larson: I was born in the northern part of Sweden – actually, not that far away from the Arctic Circle – in a small town with a population of maybe 40,000. I grew up there and I went to college in a nearby town. I graduated with a master’s degree in Computer Science and International Marketing.

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Building a New Online Fashion Brand: Combatant Gentlemen CEO Vishaal Melwani (Part 1)

I am a big believer in new, highly focused online fashion brands that can be built with a purely digital strategy. Combatant Gentlemen is a case in point. The company bootstrapped to $700K in revenue, followed it up with a $2.2 million financing round, and is on track to deliver $15 million in revenue this year. The market is large, and hence the opportunity to scale exists.

Sramana Mitra: Vishaal, let’s start at the beginning of your story. Where are you from? Where did you grow up and in what kind of background?

Vishaal Melwani: I am a third-generation tailor. I grew up in Las Vegas, Nevada, believe it or not. My dad was a second-generation tailor. My parents came to America in 1976 from Hong Kong. The goal was to basically have the American dream and focus in on what they knew. >>>

Ultra-Light Startup to $20 Million in Revenue: WatchUWant CEO OJ Whatley (Part 7)

Sramana Mitra: How many people do you have?

OJ Whatley: We currently have 20 employees.

Sramana Mitra: That’s very good – 20 employees, $20 million in revenue.

OJ Whatley: Half of those are sales associates.

Sramana Mitra: That is my next question. What is the composition?  Half are sales associates, what is the other half composed of?

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Ultra-Light Startup to $20 Million in Revenue: WatchUWant CEO OJ Whatley (Part 6)

Sramana Mitra: Regardless, in 2008 you were generating business at your own site. Talk to me specifically about your own site – developing your own site, business on your own site, the traffic. How much business do you do today on your own site?

OJ Whatley: Back then, as it is today, it’s primarily keyword-driven. Originally, it was all organic. It was a matter of getting as many relevant keywords in the title and in the top 10% that Google might scrape to have relevancy. I think one of the things that gave us greater relevancy and searchability was the fact that we were constantly putting up new inventory. That’s true today as well. Each day, we probably post five to ten new watches. There’s a constant new supply of inventory and content coming in.

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Ultra-Light Startup to $20 Million in Revenue: WatchUWant CEO OJ Whatley (Part 5)

Sramana Mitra: You said in 2006 you were doing $6 million?

OJ Whatley: Yes, $6 million – $500,000 in receipts per month.

Sramana Mitra: What was the inventory situation at that point?

OJ Whatley: I probably had closer to 50 to 80.

Sramana Mitra: That’s still out of your home?

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Ultra-Light Startup to $20 Million in Revenue: WatchUWant CEO OJ Whatley (Part 4)

Sramana Mitra: It sounds like your business was entirely Panerai until what year?

OJ Whatley: Until about 2003.

Sramana Mitra: What did you do after 2003?

OJ Whatley: Again, I’ve always loved watches. Panerai has captured my heart. In fact to this day, my license plate is Panerai. I fell in love with Panerai like no other watch. I love watches to begin with. It took me a couple of years because a lot of people were telling me that Panerai was a bubble. It was going to burst – that Panerai couldn’t justify the resale prices or the profit margins on the watches I was making.

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Ultra-Light Startup to $20 Million in Revenue: WatchUWant CEO OJ Whatley (Part 3)

Sramana Mitra: Talk a bit more about some of the granular details of specific elements?

OJ Whatley: In 2000, I walked into a watch store and I happened to pick up these hardcover books on the history of Panerai. They were like coffee table books. I went on eBay and found about eight of these in different languages. I noticed that they were selling from $100 to $150 each. I asked everyone who was working with me at that software company and found out that you could call Panerai on the 800 number and ask them to send these books to you and they would send them to you for free. I had my co-workers order these books and I would take them out for lunch in exchange for getting me these books. I would then sell them on eBay for anywhere between $50  to $300. That was a big piece of my capital.

Sramana Mitra: Was that also getting you in touch with people who are passionate about Panerai?

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