Masters of Scale by Reid Hoffman – Katia Beauchamp: The beauty of emphasizing the obvious
Unconventional ideas can fuel big dreams, but they also attract naysayers.
When Katia Beauchamp, co-founder and CEO of Birchbox, introduced her idea of subscription beauty boxes, she knew this novel business model went against beauty industry norms and was hard for some tech-focused investors to connect with. To woo investors, suppliers, and customers, Katia learned to describe her industry-flipping idea in conventional terms, connecting on common ground.
Offering a complete experience rather than just a product and flipping the orientation of an entire market are effective ways to innovate and appeal to customers. Showcasing specific benefits can convince people of unconventional ideas.
Birchbox saw a gap in the beauty industry and created a business model to provide sample boxes, limit choice, and build a community. This idea was successful in creating a popular e-commerce retailer.
Ideas don’t die
Don’t give up on your idea, but be willing to adapt and adjust your presentation to win over investors.
Understand investors’ perspectives and broaden the picture by highlighting the wider untapped opportunity.
Adapt language to appeal to investors by focusing on machine-learning, personalization, and customer acquisition. Be true to your vision while solving a problem investors have overlooked.
Introduction of a new business model demands patience, perseverance, innovation, and adaptation to constantly improve and stay ahead of the competition.
When we realized what Birchbox could be, we were looking around thinking how did this not seem obvious to a lot of people?
I think that culture is something that has to be living and breathing. It’s not a set of words on a wall
Stay focused and flexible
- Competitors will always try to copy your business model and there’s no advantage that can be relied upon forever. To stay ahead, focus on sustaining unique approaches and continuously sampling products to resolve supply issues.
- Successful businesses require flexibility and a willingness to adapt to market changes. Avoid passing increased costs onto customers, consider making painful cuts and bringing in new talent. Difficult times can lead to transformative growth and success.
- Embracing gratitude and being willing to tackle difficult challenges can lead to success in business, even in the face of a pandemic. Put your consumers first and understand their values to create a thriving industry.
We were really focused on creating a complete experience for the customer. Not just a product, but a service.