How Huda Kattan Turned $6K into $1 Billion | Glamour

Summary

Huda Kattan, founder of Huda Beauty, recounts her journey from a $6,000 investment in 2012 to a billion-dollar valuation in 2017. She shares her initial risk-taking to buy lashes, the scrappy beginnings of her brand, and strategic moves like partnering with Sephora and eliminating distributors to boost sales by 500%. Huda emphasizes the importance of focusing on profitable ventures, applying the 80/20 rule, and encourages a scrappy创业精神 to create magic in business.

Takeaways

• 💻 Huda Kattan started Huda Beauty with a $6,000 investment in 2012, which grew to a billion-dollar valuation by 2017.
• 💵 The initial investment was used to buy false eyelashes, which Huda blogged about, creating a buzz around the product.
• 💲 Huda's sisters helped her find a manufacturer, and she managed to create the first version of the lashes that are now popular.
• 💵 Huda secured a meeting with a Sephora GM and successfully pitched her vision, leading to the launch of her lashes in Sephora.
• 💵 The initial launch was a success, with the lashes selling out immediately, but it exposed logistical issues with restocking.
• 💲 To address these issues, Huda's second big move was to eliminate the distributor, which increased sales by 500%.
• 💵 By handling distribution themselves, Huda Beauty gained more control over their cash flow and increased profit margins.
• 💲 The brand expanded into color cosmetics in 2016, starting with lip contour and lip liners, which helped the brand gain more recognition.
• 💵 By 2017, Huda Beauty had a consistent product launch cadence every two months, establishing a professional company image.
• 💲 The COVID-19 pandemic prompted Huda to apply the 80/20 rule to the business, focusing on the most profitable aspects and cutting inefficiencies.
• 💵 Huda emphasizes the importance of being scrappy and leveraging free resources, suggesting that this approach can lead to significant success.

Q & A

How much did Huda Beauty invest initially in 2012?

Huda Beauty initially invested $6,000 in 2012.

What was the valuation of Huda Beauty in 2017?

In 2017, Huda Beauty's valuation was over a billion dollars.

What was Huda Kattan's first big money move when starting Huda Beauty?

Huda Kattan's first big money move was to borrow $6,000 from her sister to buy lashes.

How many pairs of lashes did Huda Kattan buy with the initial investment?

Huda Kattan bought approximately 7,000 pairs of lashes with the initial investment.

What was Huda Kattan's strategy to promote her lashes before launching the brand?

Huda Kattan started blogging about false lashes and shared her knowledge, which created demand among her readers.

How did Huda Beauty get its first meeting with Sephora?

Huda Kattan secured a meeting with one of Sephora's GMs by selling her vision of the brand and its potential.

What was the approximate amount of the first payment Huda Beauty received after launching their lashes?

The first payment Huda Beauty received was approximately $35,000.

Why did Huda Beauty decide to get rid of their distributor?

Huda Beauty decided to get rid of their distributor because they were taking too long to pay and Huda Beauty wasn't making much money from the distribution arrangement.

What was the impact of getting rid of the distributor on Huda Beauty's sales?

After getting rid of their distributor, Huda Beauty increased sales by 500%.

When did Huda Beauty start selling color cosmetics and what was the first product they launched?

Huda Beauty started selling color cosmetics in 2016 with the launch of lip contour and lip liners.

What was the significance of the 80/20 rule in Huda Beauty's business strategy during COVID-19?

The 80/20 rule, or Pareto Principle, was used to focus on the most profitable aspects of the business and eliminate inefficiencies during the COVID-19 pandemic.

What advice does Huda Kattan give to founders about doing things for free?

Huda Kattan advises founders not to underestimate what they can do for free and to embrace being scrappy.