how two childhood friends bootstrapped a $5 million jewelry company - indian fashion jewelry
Tal Masica, 30, and Zeke Araki, 31, could have taken the traditional route of working as a corporate career after college and after graduation.
But what really excites them is the idea of starting their own business.
So in 2015, childhood friends made up Pavoi in Miami-
Fast selling company based
Fashion jewelry prices on Amazon range from $10 to $100.
Most items cost less than $15.
To carry out the business, Masica had to live at home with his parents for the first six months, and each partner ran a sideline to pay bills. It wasn’t easy.
"It requires discipline and a willingness to give up --
Until business starts, "said Masica.
Nevertheless, they managed to focus on their long term
The long-term vision of their startup and where they think it will be in three years.
"What drives us to do this business is freedom," Masica said . ".
"I don't have an office.
My friend and I spent four months in Europe.
I don't know how many people are as free as we are.
"Their Bets on Pavoipaid were calculated and last year, their self
The fund business generated more than $5 million in revenue through various channels and achieved profitability.
Now that the business is established, Masica has enough time to entertain his passionkite surfing—
When Araki went to the gym
I often write about $1 million in this columndollar, one-
Personal business and partnership.
I rarely have a chance to describe people who broke $5 million.
Because they are so rare.
Only 316 non-employer companies (
The name of the government to an enterprise that has no employees except the owner)
It brought $5 million in 2016, the latest year with data.
From the background, there are 36,161 non-employer companies that bring 1-2.
Revenue was $49 million and revenue was $2,074. $9 million to $4.
The same year 9 million.
Even these are outliers in about 25 million non-employer businesses in the United States. S. in 2016.
The average income of these companies is $47,153.
Masica and Araki can teach any entrepreneur about running hyper-
Super efficientlean business.
How did they do it?
Stick to what you know.
Masica and Araki grew up around the jewelry business.
Araki's father runs a fine jewelry store in Washington, D. C. C.
Masica's father is a local jeweler selling engagement rings.
Even though neither of their fathers had a background in e-commerce
Business or participation in Pavoi, partners have learned a lot about the industry through penetration during their growth.
"This is a bit of a point for us," Masica said . ".
"It's not a complete stranger.
"This enables them to start running.
Also in their favor, Araki began another similar business in 2010, called Flytime, a watch seller on Amazon.
It has grown to seven. figure revenue.
Due to Araki's record in the watch category, he was invited to sell fine jewelry on Amazon
The goods in this column thatPavoi belong to the giant electronicscommerce site.
Boutique Jewelry is a closed category on the platform, which means you have to be reviewed and approved to be a seller.
"They are trying to control the quality there," Araki explained . ".
Invest in your future.
Masica and Araki realized they needed about $40,000 to buy inventory and didn't want to turn to investors, so they each saved $20,000.
Later, they used most of their savings and loans to fund the growth of their businesses.
"You can't grow without cash to fund inventory," Masica said . ".
Masica started his career at a private equity company, and he was lucky to receive a substantial dividend from the invested funds.
After a lot of him.
His tax spending on start-up financing.
Araki invested in Pavoi using revenue from flight time.
The money they donated came in handy.
It turns out that with their success, they will not be able to get any salary from the business in the next two years.
Araki had to live on a flying income, while Masica made engagement rings for private clients.
"Maybe I will do 20 deals a year and make enough money all year round," Masica said . ".
Fortunately, their expenses have been very low.
Both work remotely from home.
"Our minimal footprint in operations allows us to sell at a more economical price and provide value to any consumer," Masica said . ".
Divide and conquer.
The Masica and Araki teams are only two people who realize that they can build a thriving business only by playing their respective strengths.
"This has a lot to do with very efficient operations," Masica said . ".
Araki has extensive experience in writing Amazon listings, so he handles this part of the business.
At the beginning of them, organic search results on Amazon are more important than paying, so this is critical.
"Sponsored products are not today's products," Masica said . ".
"We rely heavily on optimizing our Amazon list.
"Masica's advantage is operations, so he handles this part of the business, using tools like inventory management software and as many as possible automation of A/B test sites like PickFu.
They outsourced ordinary office work to virtual assistants who signed up.
Let them focus on higher areas.
Value activities such as business strategy and revenue promotion.
Find a way to stand out.
While boutique jewelry is a closed category on Amazon, the competition is fierce, so the founders of Pavoi know they have to be different.
"We focus on price and quality," Araki said . ".
"You are competing with millions of other products.
"Their first product is a fresh water cultured pearl earrings that cost $13 to $50 per pair depending on the size.
In a professional retail store, similar earrings typically cost $100 to $500, he said.
In order to charge competitive prices, they fly overseas to find factories and suppliers with the right price and then buy earrings in bulk.
Focus on the future.
As Amazon continues to change the way it does things, the founders of Pavoi are changing.
"Knowing what to do is an ongoing battle," Masica said . ".
"We have already budgeted a lot for the continuous R & D of our products.
At the same time, the company is currently developing a proprietary analysis and inventory management software to improve its advantages.
Never stop learning.
Both owners of Pavoi are avid podcast listeners and readers.
Masica's advice on podcasts: Tim Ferris's show, Joe Logan's experience, how can I build this show on NPR, Reid Hoffman and Y-
Podcast in the park.
As for the books, he finds inspiration from Tony Robin's books and Nike founder Phil Knight's Shoe Dog Ray Dalio's principles.
"I turned to podcasts and audiobooks and continued to educate myself with new things I was interested in, so that as I grew, I had more expertise," Masica said . ".
His advice to other entrepreneurs who want to build high-tech
Income from personal business or partnership?
"It never looked so easy," Masica said . ".
"It always requires hard work and courage.
You have to give up a lot of comfort in order to achieve this --
But it's all worth it.