Bootstrapping to $23 Million: Michael Nemeroff, CEO of RushOrderTees (Part 3)

Sramana Mitra: How much did the equipment cost you?

Michael Nemeroff: I remember the bill was about $10,500 for the initial investment. Then there’s all the ancillary stuff like the inks. I couldn’t tell my friends about it because I didn’t know if you’re allowed to have that equipment inside the house. We just kept on printing and learning how to market online. We went to forums and marketed to business people. The next step was moving to a facility and starting to hire people.

Sramana Mitra: While you had the printing equipment in the dining room, did you reach the $1 million a year number?

Michael Nemeroff: No, I think we were just a solid $25,000 to $30,000.

Sramana Mitra: A month?

Michael Nemeroff: Yes.

Sramana Mitra: You basically understood the business, brought production in-house, and stayed steady at about $30,000 for a couple of years. That brings us to 2005?

Michael Nemeroff: Yes.

Sramana Mitra: Now you decide to get a facility.

Michael Nemeroff: We got a 3,000 square foot warehouse. It was the biggest thing in the world for us at that time. We took this printing press that was big in our dining room and put it in the middle of this 3,000 square foot facility. It looked like nothing. We brought that in and started printing from that facility. I was actually concerned about the move.

Now, it’s almost like I had a job. I had to wake up, go to the facility, and then start working. I was almost afraid to make that move. I didn’t really understand not having that convenience. We did the move because we had to. Once we got in there, we learned new marketing channels – some Google but a lot of SEO. Then we hired our first person.

Sramana Mitra: Were you able to keep the house?

Michael Nemeroff: The house was gone.

Sramana Mitra: Where were you living?

Michael Nemeroff: I stayed with my aunt at that time. We lived there for a few months, then we all got an apartment.

Sramana Mitra: Let’s get the milestones. When did you hit your $1 million a year?

Michael Nemeroff: I think we hit $1 million around 2007.

Sramana Mitra: When were you able to get back to a decent living condition where you either bought a house or got an apartment?

Michael Nemeroff: We bought a house together around that time.

Sramana Mitra: Around 2007?

Michael Nemeroff: Yes, but it wasn’t comfortable. Rent is this much, mortgage is this much. 2008 to 2009, things got more comfortable. We were about 30 to 40 people.

Sramana Mitra: What were these 30 to 40 people doing? What was the distribution of responsibilities?

Michael Nemeroff: It was all production or production management. The whole sales force was just me, my brother, and my sister.

Sramana Mitra: How did the revenue ramp from thereon?

Michael Nemeroff: From there on, it happened quickly. We started putting structures in place. By having that in place and shifting our responsibilities to the staff, we could focus on marketing and sales. In 2009, we were at about $3 million. In 2010, we were around $4 million. Then 2012 was $8 million. 2013 was $12 million. Then 2015 was almost $23 million.

This segment is part 3 in the series : Bootstrapping to $23 Million: Michael Nemeroff, CEO of RushOrderTees
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