TSU 1. Why launching a luxury start up is difficult

TSU 1. Why launching a luxury start up is difficult

21 Episodes

Part 1

Learn alongside the program as we work with Tati, a Top-3 US MBA graduate, to co-found a profitable, significant and sustainable digital luxury brands start-up in just 2-3 years.

This is a live program.

Unlike our other programs, this is not self-paced. We design this as a program for you to build a business. Our goal is for this program to serve as an accompanying guide to build and track your changes/milestones.

You can follow each detailed step to build your own business with our manual: choosing a product, developing a strategy, we will discuss all the plugins, websites and Apps used, how to get a website, source the product, outsource building the product, testing the product, finding clients, building a brand, email templates used , client emails used, collecting payments, managing taxes, incorporating and you can apply the lessons.

The program is unique since we focus on software and building a physical product, and lean heavily on Bill's teachings.

Tatiana, an Ivy-MBA, worked in a bulge bracket investment bank for ~2 years. At the start of the show Tatiana must consider her father’s suggestion that she return home. Tatiana, however, wants to be her “own person” and launch a luxury label. Her father is hesitant while her mother is quietly apprehensive given that Tatiana has never before run a business. Tatiana is launching a luxury brand start-up in a sector which prizes elegance, exclusivity, heritage and legacy. These are enormous barriers to entry. The very attributes that have made start-ups successful in almost every other sector in the world tend to be viewed as a liability for luxury brands.

If Tatiana joined the family business, she would need to commit at least 3-4 years to making a meaningful contribution. That will push her past the age of 30 at which point changing her career will be even more difficult, given the possibility of marriage and potentially children. The opportunity costs get higher and higher with each passing year. Therefore, she has to act now.

We begin with no designs, no plan, no strategy, no designer, no theme, no target market, no website, no distribution, no e-commerce system, no material, no sourcing, no presence in the world’s fashion capitals and almost no capital for a sector that eats it.

We pay stunning attention to detail when it comes to the product and brand because execution is key. We unpack, dismantle and reassemble every single assumption in this sector. This is truly about building a great product. Although a complex task requiring a blending of design, form, function and R&D, it is not expensive to do and does not require an army of researchers. One person who thinks is an R&D department. It is not all fashion shows, champagnes, A-list events and first class travel. That is the outcome of harnessing the chemistry (yes, actual chemistry with beakers and flasks), automating highly mechanical processes and meticulously sourcing pure raw material from a very special lamb in Italy. All of this can be done from a laptop in an apartment on a tiny budget. This is the key insight. We plan to use an unusual approach to technology, the law, procurement, design, especially marketing etc. to upend a sector that believes it is immune to change.

Tatiana’s parents assume that having grown up with more than they had, Tatiana needs little support. Her peers assume that since she has more support and resources, they tend to be more demanding of her. She also comes from an accomplished family which implies the bar to perform is much higher. Due to these assumptions and demands on her, she ends up having less support than she needs and suffers from a fear of failure.

You especially want to see Michael get into the nuances of stitching technology, and even the metal used on the stitching needles, to explain the dramatic impact on the break-even curve. All of this can, again, be done from an online base.

Disclosure: When we admit clients to this program, Firmsconsulting assumes a controlling equity stake in the business, though we are not investors.

Subscribe Share
TSU 1. Why launching a luxury start up is difficult