Spanx Founder Sara Blakely Shares Secrets To Building A Billion-Dollar Business | #Next1000 Summit

Summary

In a special conversation at the Next 1000 Summit, Sarah Blakely, founder and executive chairwoman of Spanx, shares her inspiring journey of building a billion-dollar business from just $5,000 in personal savings. Starting with a simple idea to solve a personal fashion dilemma, Blakely bootstrapped her business into a global shapewear brand. She emphasizes the importance of mindset, which she considers the single greatest asset for an entrepreneur. Blakely's story highlights the power of intention, innovation, and the ability to turn failures into opportunities. She also discusses her approach to leadership, focusing on sharing the 'why' behind Spanx, which has resonated with consumers and helped to create a brand that stands for more than just a product. Additionally, Blakely talks about her philanthropic efforts, including the Red Backpack Fund, which supports female entrepreneurs, and her recent decision to sell a majority stake in Spanx to Blackstone, a move she sees as beneficial for the company's future and her personal growth.

Takeaways

• 💡 Sarah Blakely, founder of Spanx, started her billion-dollar business with just $5,000 of personal savings and bootstrapped the company to success.
• 👚 Spanx revolutionized the shapewear industry, making it synonymous with women's empowerment and comfort.
• 💭 Blakely's initial idea for Spanx came from a personal need and her frustration as a consumer, highlighting the power of addressing unmet consumer needs.
• 🧘‍♀️ A strong mindset has been a critical component of Blakely's journey, emphasizing the importance of mental strength and daily self-improvement for entrepreneurs.
• 📚 Early in life, Blakely was influenced by Dr. Wayne Dyer's motivational teachings, which taught her about the power of positive thinking and visualization.
• 🚀 Despite having no prior experience in fashion or retail, Blakely's confidence and persistence allowed her to challenge industry norms and innovate.
• 🤝 Blakely's approach to business was to connect emotionally with consumers by sharing the 'why' behind Spanx, rather than just the 'what'.
• 💰 She entered into partnerships with major retailers like Neiman Marcus and Nordstrom with no industry contacts, demonstrating the power of audacity and a compelling story.
• 🤣 Using humor and playfulness as a strategic advantage, Blakely differentiated Spanx in the market and connected with consumers on a personal level.
• 📈 Spanx created a new industry category and grew without advertising for 16 years, relying on word-of-mouth and a strong brand connection.
• 🤔 Blakely advises entrepreneurs not to focus on competition but to innovate and create superior products that meet consumer needs.
• 🎉 In a generous act of gratitude, Blakely gifted all Spanx employees with two first-class tickets anywhere in the world and $10,000, emphasizing the value she places on employee experiences and contributions.

Q & A

What was the initial inspiration behind the creation of Spanx?

The initial inspiration for Spanx came when Sarah Blakely couldn't find the right undergarment to wear to a party. She ended up cutting the feet out of her control top pantyhose to wear under cream pants, which sparked the idea for a new type of shapewear.

How did Sarah Blakely fund the start of Spanx?

Sarah Blakely funded the start of Spanx with $5,000 from her personal savings.

What was Sarah's background prior to founding Spanx?

Sarah had no formal business education or experience in fashion or retail before founding Spanx. She had aspirations to be a lawyer, but after not getting into law school, she worked at Disney World and then sold fax machines door-to-door for seven years.

How did Sarah Blakely's mindset contribute to her success?

Sarah's mindset was a significant part of her journey. She believes that mindset is the single greatest asset an entrepreneur has and that it needs to be worked on daily. Her mindset allowed her to navigate obstacles and innovate in an industry where she had no prior experience.

What role did failure play in Sarah's upbringing and how did it influence her approach to business?

Sarah's father encouraged her and her brother to fail, reframing failure as a learning opportunity rather than something to be avoided. This approach helped Sarah to not fear failure and to see it as a part of the process for innovation and growth in business.

How did Sarah approach the challenge of entering the retail market without any industry contacts?

Sarah approached the challenge by picking up the phone and directly calling large retailers like Neiman Marcus and Nordstrom. Her confidence and the strength of her product allowed her to succeed despite having no industry contacts.

What was the significance of the 'why' behind Spanx for Sarah Blakely?

The 'why' behind Spanx was significant for Sarah because it connected to her personal mission of empowering women and making them feel good about themselves. She believes that selling the problem you're solving rather than the product itself creates a stronger emotional connection with consumers.

How did Sarah's use of humor and playfulness contribute to the success of Spanx?

Sarah's use of humor and playfulness helped to differentiate Spanx from competitors and create a connection with consumers. She used humor in her marketing and in dealing with failures, which helped to humanize the brand and make it more relatable.

What advice does Sarah have for dealing with competition and copycat brands?

Sarah advises not to pay much attention to the competition and to focus on being an innovator rather than an imitator. She believes that focusing on innovation and creating superior products will ultimately serve a business better than worrying about what competitors are doing.

What motivated Sarah to create the Red Backpack Fund and how does it work?

Sarah created the Red Backpack Fund to support women entrepreneurs who were disproportionately impacted by the pandemic. She donated $5,000 to 1,000 different entrepreneurs to help them through difficult times, mirroring the amount she started Spanx with.

Why did Sarah decide to sell a majority stake of Spanx to Blackstone?

Sarah decided to sell a majority stake of Spanx to Blackstone because it was the right time for the business and for her personally. She felt that Blackstone's global resources would help take Spanx into the future, and she still retained a stake in the business to continue her role in product development.

What was Sarah's motivation behind gifting all Spanx employees two first-class tickets anywhere in the world and $10,000?

Sarah wanted to include employees in the celebration of a major milestone for the brand. Her belief is that the more experiences one has in life, the more they have to offer others. She wanted employees to create memories for themselves and celebrate the brand's history.