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?

>>>

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.

>>>

Rakuten – the Alibaba of Japan

According to a recent report released by Forrester, e-commerce sales in the markets of China, Japan, South Korea, India, and Australia will grow at a compound annual growth rate of 16.6% to $858 billion in 2018. The report predicts that growth rate in the developed markets of Japan will be comparatively slower at 10%. Japan’s online retail sales accounted for revenue of $59 billion in 2013. That number is projected to grow to $96 billion in 2018.

>>>

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. >>>

Groupon Sinks to 52-Week Low Figures

Online daily deals site Groupon (Nasdaq: GRPN) does not seem to be recovering at all. Earlier this week, they announced quarterly results that managed to exceed market projections. But despite their performance, a weak industry outlook and rising company costs sent the stock tumbling to 52-week low figures. According to a report by IBISWorld, the daily deals industry in 2013 was pegged to be worth $3.3 billion in revenues, recording a 15% growth over the year. But growth is expected to slow down significantly this year, when the industry is projected to grow a comparatively meager 3.5% to $3.4 billion. The research report estimates growth to remain at 4% levels till 2018 when the industry will be worth $4 billion in revenues.

>>>

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?

>>>

Amazon Continues On Without Profits

According to market reports, online retail giant Amazon (Nasdaq: AMZN) accounts for nearly 2% of global retail sales. However, while they may continue to rake in revenues, Amazon is still struggling with turning profitable. Amazon envisions profitability only by the end of the decade. Till then, they are operating on narrow margins while investing in services to garner higher market share.

>>>

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.

>>>