2. The importance of taking risks when growing your business

Summary

In this episode of 'Making It Happen', co-founders Jenny Rudin and Katie Demo interview Chelsea Moore, CEO of Box Fox, a company revolutionizing gift boxes since 2014. Chelsea shares her journey from leaving her first job to co-founding Box Fox, emphasizing the importance of calculated risks and a data-driven strategy. The conversation delves into the challenges of entrepreneurship, the balance of audacity and vulnerability, and the strategic growth of the business, highlighting the value of over-communication and learning from every experience, even when it doesn't go as planned.

Takeaways

• 🚀 Chelsea Moore, CEO and co-founder of Box Fox, emphasizes the importance of a data-driven strategy and exceptional product for starting a business.
• 🌟 The co-founders of Brass Clothing, Jenny Rudin and Katie Demo, host 'Making It Happen' to share raw, honest conversations with other founders about their entrepreneurial journeys.
• 💡 Box Fox began with a mission to modernize gift boxes in the 21st century, starting in 2014 when Chelsea felt disconnected from friends post-graduation.
• 🛫 Chelsea took the risk of leaving her first job after college to found Box Fox, highlighting the necessity of risk-taking in entrepreneurship.
• 🤝 The co-founders of Box Fox, including Chelsea, Jenny Oliveiro, and Sabina, initially operated from an apartment, demonstrating the humble beginnings of a successful business.
• 🏡 The transition to a formal warehouse marked a significant financial risk for Box Fox, showcasing the company's growth and commitment to scaling.
• 💼 Chelsea's experience in an ad agency was a turning point that led her to fully commit to Box Fox, illustrating the audacity and determination of young founders.
• 💰 Financial risks were a significant part of Box Fox's early days, with the founders investing their own savings and gradually expanding without external funding initially.
• 🔑 Chelsea discusses the importance of over-communicating in decision-making, especially when co-founders have differing views on risk-taking.
• 🔄 The company has learned from past experiences, such as the decision not to pursue certain retail partnerships, and adapted their strategies accordingly.
• 📚 Chelsea recommends 'The Negotiation Book' by an FBI negotiator, highlighting the value of emotional detachment in business negotiations.

Q & A

What is the main focus of the podcast 'Making It Happen'?

The podcast 'Making It Happen' focuses on having raw and honest conversations with founders about their experiences in starting, running, and growing a business, providing listeners with a behind-the-scenes look at the realities of entrepreneurship.

What was the initial inspiration behind Box Fox?

Box Fox was inspired by the founders' feeling of disconnection from their friends after college. They wanted a better way to celebrate life's big moments and send thoughtful gifts when they couldn't be physically present, which led to the idea of creating personalized, aesthetically pleasing gift boxes.

How did Chelsea Moore describe her experience working at an ad agency before starting Box Fox?

Chelsea described her experience at the ad agency as unfulfilling and felt disconnected from the work she was doing, especially during late-night print production sessions. This dissatisfaction contributed to her decision to leave and focus on building Box Fox.

What was the initial business model for Box Fox?

The initial business model for Box Fox was to offer ready-to-ship gift boxes, which was an easier starting point while they developed the 'Build a Box Fox' platform for more personalized and customized gift boxes.

How did Box Fox approach inventory management in the early stages of the business?

In the early stages, Box Fox managed inventory by ordering gift boxes from China and maintaining a small amount of startup inventory. They did not take a salary initially, which helped with cash flow, and the business was self-regenerating as they sold and reordered boxes.

What was the first major financial risk Chelsea and her co-founders took with Box Fox?

The first major financial risk was renting a three-bedroom apartment where one room was dedicated to Box Fox operations, with the business paying the rent for that room, signifying a commitment to the venture.

How has Chelsea's approach to risk-taking evolved over the years?

Chelsea's approach to risk-taking has evolved from being somewhat naive and confident in the early days to becoming more informed and strategic, with a better understanding of financial risks and the importance of over-communicating with her co-founders.

What is Box Fox's corporate gifting service called, and what does it entail?

Box Fox's corporate gifting service is called 'Box Fox Concierge.' It is a team of seven people handling a range of orders from 15 to 15,000 box orders, offering customization, packaging, manufacturing, and fulfillment services for corporate clients.

How does Chelsea describe the importance of communication within the founding team at Box Fox?

Chelsea emphasizes the importance of over-communicating, truly listening to each other, and respecting each team member's perspective when making decisions, especially regarding risk-taking.

What book did Chelsea recommend for improving negotiation skills?

Chelsea recommended 'The Negotiation Book' by the FBI negotiator, which she found helpful in learning to approach negotiations with less emotion and more data-backed strategies.

What is Chelsea's vision for Box Fox in the next five years?

Chelsea's vision for Box Fox in the next five years is to expand the business, increase customization options, improve manufacturing efficiency, and potentially double the size of the company. She also hopes to enhance their philanthropic efforts and continue building a strong company culture.