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How to Startup: Disrupting Established Industries
Welcome to this edition of "How to Startup," where we uncover practical lessons from real founders who have navigated the early stages of building a company. Today, we will explore how innovative thinking can challenge an entire industry.
Founder Spotlight: Warby Parker
The Beginning of Warby Parker
Warby Parker was founded in 2010 by four friends and classmates from the Wharton School of the University of Pennsylvania: Neil Blumenthal, Andrew Hunt, David Gilboa, and Jeffrey Raider. Their motivation was simple. The cost of eyeglasses was extremely high, and they saw an opportunity to offer affordable, stylish frames directly to consumers.
“We realized there had to be a better way,” Neil Blumenthal said in a Q&A with Fast Company. “We wanted to make it easier for people to buy eyeglasses without draining their bank accounts.”
They took a direct-to-consumer approach, building an online model that cut out the middleman. This let them offer glasses at a fraction of the typical retail price, challenging the dominance of large eyewear manufacturers.
The Early Challenges
Despite a promising idea, Warby Parker faced numerous hurdles in its first year:
Supply Chain Setup: Securing manufacturers that could produce quality frames on smaller orders was more difficult than they first expected.
Brand Credibility: Eyeglasses are an item people need to trust. As a new brand without a physical presence, Warby Parker had to work hard to prove its reliability.
Website Traffic Surge: When GQ labeled Warby Parker “the Netflix of eyewear,” demand spiked dramatically. Their site crashed, and they ran out of inventory in weeks.
Customer Service Scaling: Responding to a sudden influx of emails and calls stretched the small team thin.
Balancing Mission and Growth: The founders also wanted a social mission called “Buy a Pair, Give a Pair,” which required operational coordination with nonprofit partners.
The Turning Point
Warby Parker’s fortunes began to change as a result of:
Refined Product Offering: They iterated on the look, durability, and comfort of the frames, increasing overall customer satisfaction.
Home Try-On Program: A major innovation allowed customers to try multiple frames at home for free, transforming the online shopping experience.
Social Mission: Their “Buy a Pair, Give a Pair” program resonated with socially conscious consumers, strengthening brand loyalty.
Customer-Focused Communication: They used social media to engage directly, addressing questions and concerns with a personal touch.
Physical Expansion: After proving demand online, the company launched brick-and-mortar locations, making Warby Parker more accessible to customers who preferred in-person visits.
What started as a scrappy operation soon became a game-changer in the eyewear industry, eventually gaining nationwide recognition and attracting significant investment.
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Advice for New Founders from Warby Parker’s Experience
Focus on Value
Warby Parker aimed to lower costs without sacrificing quality or style. Consider how you can provide real value to customers in a way competitors overlook.Test Consumer Demand Early
The home try-on program effectively showed that buyers were willing to purchase glasses online. Small, focused experiments can clarify your path forward.Embrace PR and Word-of-Mouth
A single media mention propelled Warby Parker from unknown to in-demand. Leverage publicity and let satisfied customers do some of the marketing for you.Make Customer Experience a Priority
From quick email responses to easy returns, Warby Parker’s customer-centric approach helped them build trust in a traditionally offline market.Blend Profit and Purpose
Social missions can do more than boost a company’s public image. They can help shape a positive internal culture, attract top talent, and build loyalty among consumers.
Mistake to Avoid: Overlooking Customer Experience
Even the most revolutionary business model can fail if you ignore how customers actually feel when interacting with your product or service. Early founders sometimes get so consumed by product development that they forget to offer a user-friendly journey.
Why It Happens
Time Pressures: In a startup, there is never enough time to do everything. Customer support can end up on the back burner.
Limited Resources: Small teams may lack staff dedicated to service or user research.
Data Blindness: Some founders rely too much on metrics and fail to talk directly with customers.
Potential Consequences
Damaged Reputation: Dissatisfied customers often voice their complaints on social media.
Lost Revenue: Unhappy buyers are unlikely to return, and negative word-of-mouth can deter new business.
Slower Growth: A poor experience can kill your early momentum just as you need to scale up.
How to Avoid This Mistake
Establish a Feedback Loop
Use surveys or direct conversations to learn what users do and do not like about your offering.Offer Real-Time Support
If you can, set up live chat or rapid-response email. Speed and friendliness matter a lot.Train Your Team Well
Everyone who interacts with customers should understand the brand mission and voice. Consistency builds trust.Iterate Based on Feedback
Listen closely when customers complain. Resolve issues and make incremental improvements to prevent future complaints.
Quick Tips
Product Development Tip: Prototype often and show it to potential users. Honest feedback will save you from building something nobody wants.
Marketing Tip: Build relationships with journalists and influencers in your niche. A single shout-out in the right place can create explosive interest.
Finance Tip: If inventory is part of your model, plan conservatively. Stockouts frustrate customers, but holding too much product can strain your budget.
Resource Roundup
Book: Delivering Happiness by Tony Hsieh offers insights on building a customer-centric culture.
Tool: Zendesk can help manage customer interactions in one place, keeping support organized.
Article: “How Warby Parker Built a Billion-Dollar Business” on Inc.com, which details the founders’ journey and lessons learned.
Podcast: How I Built This with Guy Raz. Warby Parker’s founders have shared their story here, and other innovators discuss similar themes.
That is all for this edition of “How to Startup.” If you are challenging a longstanding industry, remember that combining innovation with a focus on customer happiness can set you apart from the competition.
Stay inspired and keep pushing boundaries. See you next time!