EP13 – Bootstrapping to 7 Figures, Overcoming Capital Constraints, and Building a Remote Team with Fred Perrotta of Tortuga Backpacks
Fred Perrotta of Tortuga Backpacks takes a contrarian view when it comes to scaling a successful brand. But his approach has allowed him and his team scale Tortuga Backpacks into a multiple-seven-figure business through bootstrapping alone. They haven’t raised any outside venture capital, and they’ve managed to build a fully remote team from day one.
Designing and manufacturing products require capital. This is the biggest constraint for bootstrapped businesses. You have to figure out how you can afford to scale as the demand for your products increase.
We talk to Fred about how he co-founded the business, how they’ve scaled it, and how they’ve overcome capital constraints resulting from not raising any outside funding. We also explore the tactics Tortuga Backpacks has used for managing inventory issues, covering employee salaries, and marketing their brand.
If you’re looking to take a bootstrapping approach to growing your business, you’ll learn how Fred and his team have been able to scale Tortuga Backpacks into a multimillion-dollar brand.
“You have to focus on what’s actually working for you, what’s possible, and what you can afford. That’s a muscle you have to develop.” – Fred Perrotta, Tortuga Backpacks (45:06-45:15)
Some topics that were discussed include:
- The “levers” that Tortuga Backpacks used to hit their first seven figures in revenue
- How to learn from the feedback you get from customers so you know what will work
- How profitable (and for how long) you have to be to get conventional funding
- Accidental scarcity can create a bigger demand for your products.
- Getting your audience to buy up your inventory can be as easy as just sending out an email.
- How much revenue does it take to fund your inventory and production runs while keeping your products in stock at all times?
- Where you need to allocate your profits when growing a bootstrapped business
- What percentage of your marketing needs to go to performance marketing
- Magazines have become online publishers that rely heavily on affiliate revenue.
- Tortuga Backpacks’ philosophy on remove versus non-remote teams
- Navigating the drawbacks and limitations of remote teams
Contact Fred Perotta:
References & links mentioned:
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