Spanx: How a Billion Dollar Idea Wasn’t Such a Stretch
Photo: WSJ

Spanx: How a Billion Dollar Idea Wasn’t Such a Stretch

There’s a misconception that surrounds business owners and entrepreneurs.

This misconception, often held by outsiders looking in, is the belief that successful business owners and entrepreneurs know everything and have it all figured out.

They don’t.

In 2012 Sara Blakely became the world’s youngest self-made female billionaire. She’d also be the first one to tell you that when she started she had no idea what she was doing.

Her company, which began in 1998, was born out of an idea and a frustration. The frustration was that she wanted to wear white pants to a party and have nothing showing underneath them. The idea was to cut the legs off of pantyhose.

The company became Spanx.

Within a year Spanx reported revenue of over 4 Million dollars. Another year later Oprah described Sara’s products as her favourite and a “must-have in every woman’s closet”.

How then, without any previous experience in fashion or retail, absolutely no experience starting a company and not even a single business class under her belt, did Sara turn a simple idea into an industry unto itself?

With help, of course.

Immediately, Sara recognized that if the company was going to surviving she needed people who could do the jobs in the areas she was weakest. So she set out to make key hires.

Her first hire was an operator who focused on inventory, delivery, accounting and accounts receivables. Her second hire was responsible for PR and marketing, and her third hire was an assistant to help with booking all the appointments she was making herself. This freed up Sara to do what she did best; come up with ideas and develop products.

Many entrepreneurs and business owners are great at their work. The ones who are successful in creating a lifestyle that is meaningful to them, understand the importance of getting support in the areas that give them the most trouble.

In the early days owners need people who understand the company’s mission, espouse their values and can wear different hats. But as their business matures, they need specialists.

Thompson Investment Partners specializes in plans designed to make work optional for business owners and entrepreneurs. As business owners ourselves we understand the importance of a systemized process that ensures all areas of concerns are captured, addressed and prepared for.

Your business has a CFO. Your life needs one too. 

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