Monday, September 28, 2009

famous founders

A quick bit that brings a tad more light into why the method vroom brand went bye-bye, from the article Seven famous founders share money mistakes, smart moves By Laura Petrecca, at USA Today:

"Adam Lowry and Eric Ryan, the Method co-founders (notice in the article, they get the names on the above photo confused. "Adam Lowry, left..." really, now? Is that my left, or your left?)

In 2000, two roommates had a brainstorm: eco-friendly cleaning products. They whipped up some samples in their bathtub and handed them out to friends. Method was born. The company in 2008 reached $100 million in sales and is sold in retail outlets such as Target.

+ Money mistake "As an entrepreneur, you just feel a desire to just grow, grow, grow and show top-line (increases)," Ryan says. "Sometimes it leads you astray."

After the founders expanded their brand into the car-cleaning marketplace with a product called Vroom, they realized they moved a bit too fast.

"We ultimately ended up selling the line (to another company), but it was a big distraction from our business at the time," Ryan says. "There are times that you need to preserve fuel and be careful about how many growth opportunities you pursue, because you burn capital."

+ Savvy move "Hiring a CEO as our first employee was one of the best money moves we made," Lowry says.

The more-experienced Alastair Dorward helped the founders make better management and financial decisions. Dorward had the acumen "to grow smart rather than just grow fast," Lowry says.


I still say an auto line would rock, and sell well!

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