Hey EV readers 👋 

I hope you've had an amazing week so far! I've got something special for you - a delightful mix of insights that will quench your thirst for knowledge and help you power through another week of hustle and bustle. Enjoy!

The man who sold his “ugly” shoe company for billions of dollars

This wasn’t his first attempt at business. Before he came up with the idea that made him a billionaire, his entrepreneurial journey had been a series of failures. Even his first attempt at making shoes was a flop. I mean…who wears wooden shoes with spring-loaded heels?

Well, his ideas are crazy but that was exactly why he could blindside every market analyst to become one of the most sought-after shoe manufacturers. It’s just like they say, fortune favors the bold. despite his not-so-impressive portfolio, fortune did indeed smile on this Italian entrepreneur by the name of Alessandro Rosano.

According to his sister, Rosano had his “flash of genius moment” when he returned from a trip to China. His idea was simple - make a shoe that was as comfortable as a slipper. The result was a lightweight slip-on loafer with elastic laces that has been described by Forbes as;

Because it lacked any of the stylish aesthetics that are common with modern shoes. To put it simply, the shoe was bland and the name” HeyDude” as the shoe was called would barely compete with brand names like Nike or Addidas. But why did the shoes have such an unremarkable identity?

Was this an oversight or a marketing ploy?

In case you missed out;

Last week we talked about Steve Jobs’s 2010 interview which was his last public interview. Jobs’s insights during this interview are to be admired as they are still relevant even today. Click here to read all about it.

Back to Rosana, the lack of any aesthetics was neither an oversight nor a marketing ploy. It seems Rosana’s focus was on the comfortability of the shoes and to achieve this goal, it was necessary to strip away every other feature that would interfere or even distract from it. In essence, HeyDude shoes were not about how you looked but how it felt.

This was how Rosana managed to carve out a niche for himself in a market where his competitors were multimillion-dollar companies like Nike. HeyDude became associated with comfort and it was an instant hit. By 2020 the company’s revenue skyrocketed after the coronavirus hit and most shoppers were looking for shoes that were comfortable and casual.

Despite its success, very few people knew the name HeyDude until Crocs bought the company for 2.5 billion dollars. Rosana had pulled off the impossible, building a successful shoe company with what the Crocs CEO describes as a shoestring budget. Marketing was mainly by word-of-mouth and his overall approach can be summarized in one word, “unorthodox”.

Perhaps doing it his way was what made him successful in an industry with stiff competition. If there is one thing to learn from this, it will be the power of having a niche. Don’t be afraid to dial down on what exactly you want to achieve in your business and let go of everything else that could interfere with this single GOAL.

HeyDude may not be as aesthetically pleasing as the latest Air Force Ones. But they were never meant for that. It was meant to be the shoes you go for when you want something casual and comfortable and you don’t have to worry about looking overdressed.

Four gender stereotypes against women founders and how to navigate them

It goes without saying that funding is an important step in the growth of a business. Also, the number of Venture Capitalists as well as Venture capital available has increased over the years. However, the distribution of this capital is one-sided, and the reason behind this is gender-stereotyping which seems to favor male founders over female founders.

Knowing the problem is just one-half of it, the other half is having a solution(s). Before I talk about the solution, here are the four stereotypes women face according to a study by Harvard Business Review;

(1) women are cautious and risk-averse whereas men are eager to go and test their ideas,

(2) women are reluctant to grow their businesses whereas men are willing to grow their businesses,

(3) women do not have resources to engage in high growth whereas men have resources to engage in high growth, and

(4) women's ventures underperform whereas men's ventures perform well

You can read the full research here.

And if you’re wondering if these are facts or assumptions, here is the conclusion of that research.

Three tips to make funding easier for women founders;

Plan your funding early

When starting your business, there are so many things that crave your attention. This may include, finding the right structure for your business, creating a business plan, market research, getting your licenses and permits (if applicable), etc.

Fundraising is not usually the first thing that comes to mind because many founders often start small and tend to depend on personal savings or money from family and friends.

But when it's time to scale up, there could be a need for external funding. At this point, it may be too late to start searching for sources to get funds. This is why you need to plan this as early as possible. The earlier you start, the higher your chances of getting a VC fund when you need one.

Be part of a community

One of the invaluable things that startup founders need to do is network for two main reasons. One, you get to connect with and build relationships with relevant people in your line of business. The second reason why networking is important is information.

Because you are now part of a community, you get access to information exclusive to members of that community. Such as suitable VCs, angel investors, or fundraising platforms. An example of a community established for the sole purpose of helping women founders is the Frank & Eileen™ Center for Women’s Entrepreneurial Leadership

Have a co-founder

Depending on the situation, you may consider hiring a co-founder to speed things up. According to the data released by PitchBook, having a male co-founder alone can increase your chances of getting funded by up to 17%. And the role of a co-founder is not limited to raising funds only. They can be key players who contribute their knowledge, skills, and experience to help the business grow.

That’s all for now folks.

Until next time, stay inspired and keep chasing your dreams!

Cheers,

Alex