I Launched A Business From My Living Room — Now It Brings In $9 Million A Year

Summary

Jenny, founder of the handbag brand Freja, shares her journey from struggling with a lack of functional bags to building a $9 million business. After starting with a blog to document the process, she developed a brand focused on timeless, functional bags made in China with transparency and intention. Through setbacks, like a failed launch and slow growth, Jenny persisted by investing profits back into the business. Now, after five years, Freja has become a success, with Jenny calling herself a designer and looking forward to expanding the brand’s community impact.

Takeaways

• 😀 Jenny, the founder of Freja, is 28 years old and has built a $9 million handbag brand in just one year.
• 😀 Freja specializes in creating timeless, functional handbags for women, originally starting as a work bag brand before expanding into various everyday bag styles.
• 😀 The brand was born out of Jenny's frustration when she couldn't find a suitable bag for her interview prep, leading her to design a functional and stylish option.
• 😀 Jenny values transparency in her business, sharing all the challenges and decisions with her audience, from production mistakes to pricing changes.
• 😀 Freja's bags are made in China, and Jenny is proud of the craftsmanship and quality, showing that 'Made in China' can signify high standards.
• 😀 Initially, Jenny invested $30K into her first batch of bags, which included materials, hardware, and labor costs for manufacturing.
• 😀 Jenny began Freja as a blog to create a narrative and build anticipation before launching products, even though her first attempt at selling didn't go as planned.
• 😀 In the early stages, Jenny's customer acquisition was slow, but by being consistent and transparent, Freja built a dedicated following over time.
• 😀 Freja reached a turning point in 2023, when a successful Black Friday sale generated enough profit to ensure financial stability for the business.
• 😀 Jenny emphasizes the importance of intuition and self-trust in entrepreneurship, reflecting that her creative outlet has now become a full-fledged career.

Q & A

What inspired Jenny to start Freja?

Jenny was inspired to start Freja after a stressful night of interview prep, where she couldn't find a suitable bag to carry her essentials. This problem led her to create a functional and stylish bag that could support women’s daily needs.

What is Freja’s primary product focus?

Freja specializes in creating classic, timeless, and functional handbags designed to support women in their everyday endeavors, starting initially with work bags and expanding to a broader range of everyday bags.

How did Jenny approach the manufacturing of Freja bags?

Jenny initially faced challenges with sample quality in New York but later found a reliable sample maker in China. She prioritized transparency in sourcing and production, ensuring ethical practices, and worked with a factory that aligned with her values.

What was the initial investment Jenny made to launch Freja?

Jenny invested about $30,000 into producing the first batch of Freja bags, covering the cost of materials, hardware, factory labor, and shipping.

How did Jenny build a following for Freja before launching?

Before launching Freja, Jenny started a blog to share the journey of creating the brand, offering transparency about the design process and challenges. This helped build an email list of 2,000 interested customers, though the initial launch did not result in immediate sales.

What challenges did Jenny face in the first two years of Freja's existence?

In the first two years, Jenny struggled with slow customer acquisition and low sales, living on a tight budget and working hard to break even. She relied on the support of a loyal, niche customer base that resonated with the brand's transparency and story.

How did Jenny address the issue of pricing Freja bags?

After initially struggling with pricing, Jenny raised the prices of Freja bags by $20 in the second year. She communicated these changes transparently to her customers through email and offered the option to purchase at the old prices before the increase.

What key moment helped boost Freja's sales?

A significant turning point for Freja came in 2023 when the company had a successful Black Friday sale, which resulted in a substantial profit. This success marked the first time Freja had money in the bank to reinvest in the business.

How did Freja differentiate itself from other handbag brands?

Freja differentiated itself by focusing on slow, intentional growth and maintaining transparency in all aspects of the business, including pricing, sourcing, and design. This unique approach helped build trust and loyalty among its core customer base.

What is Jenny's vision for Freja moving forward?

Jenny hopes to expand Freja’s reach through community events and partnerships that empower young women to chase their dreams. She also wants to continue emphasizing the brand’s core values of transparency and creativity.