The Koerner Office - Business Ideas and Deep Dives with Chris Koerner - 018: Making $10k/Month Selling Cardboard Desks

Episode Date: September 20, 2023

In this episode, we have a fascinating tale to share with you—one that highlights the incredible rise of Deskmate, a startup that started as a side hustle and transformed into a thriving business. We'll dive deep into their story, identify the key factors that went right, and provide you with actionable tips that you can implement in your own business ventures. So, get ready to be inspired and equipped with the knowledge you need to make your startup dreams a reality. Let's begin the journey into the world of entrepreneurial success with Deskmate!

Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories, and case studies from every random nook and cranny of the internet. Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, startup gems is your source for the stories that ignite the flames of innovation. In this episode, we have a fascinating tale to share with you, one that highlights the incredible rise of Deskmate, a startup that started as a side hustle and transformed into a thriving business. We'll dive deep into their story, identify the key factors that went right, and provide you with actionable tips that you can implement in your own business ventures. So get ready to be inspired and equipped with the knowledge you need to make your startup dreams a reality. Let's begin the journey into the world of entrepreneurial success with Deskmate. Meet Ashley J.P. Lockwood, the co-founder of Deskmate, a London-based startup specializing in affordable standing desks. This venture began in,

In January 2017, when Ashley and his partner, Arthur, were working on separate projects during an incubator program called Escape the City. Deskmate initially served as a side hustle to supplement their income while living and working in London. Deskmate offers two products, Deskmate designed for larger setups and minimate tailored for laptop users. What sets them apart is their commitment to environmental friendliness using cardboard materials for their products that can be set up in under 10 seconds. Notably, Deskmate proudly claims the title of the world's most affordable standing desk, and since their launch, they've sold over 5,000 units to nearly 100 countries. The idea for Deskmate arose when Ashley and Arthur were working from a co-working space

and realized that affordable standing desk solutions were sorely lacking in the UK market. They conducted some quick research and found no suitable options on Google or Amazon. Recognizing this gap, they decided to fill it. Neither of them had prior experience in the standing desk or office furniture industry. Ashley had a background in e-commerce and had previously launched an online shirt retailer during his university days, followed by a stint as sales director at a venture-backed startup. However, they took a learn-as-you-go approach when entering this new market. The process of designing and manufacturing their first product was surprisingly straightforward.

With a rough design and a family member working in cardboard production, they had a prototype within a week. They made their first sales through a pop-up shop at WeWork, where they sold five desks within the first 30 minutes. Launching the business was equally spontaneous. They built their initial website in just 14 days on Shopify and launched it a week later. Initially, sales were slow, but they steadily built their content and marketing efforts over time. To secure some capital, they approached Virgin for a startup loan,

which provided them with an initial injection of 12,000 pounds. One key lesson they learned was to avoid outsourcing until they had a solid grasp of their product. They dabbled with agencies, PR firms, and sales executives, but eventually found that, especially in niche markets like theirs, it's essential to handle sales and marketing personally. Throughout their journey, Deskmate has pursued various customer acquisition channels, categorizing their efforts into three main sections, B2C, B2B, and wholesale. For B2C, they focused on paid ads, PR, social media, and blog posts. B2B sales involved outreach to businesses directly through email marketing, LinkedIn, and strategic sales calls.

Wholesale partnerships with retailers and other channels expanded their reach. They've also leveraged digital advertising, PR through platforms like response source, SEO through blog posts, and partnerships with companies like Virgin 3 and WeWork to attract customers. Securing PR features in Forbes and other major UK newspapers was a significant achievement for them. As of now, Deskmates' gross margin stands at around 65% with 10,000 monthly site visitors and a customer database of 14,000 across B2B and B2C segments. The business is challenging, but their goal for 2020 was to break the 1 million units sold mark. Their operations remain lean, with everything from manufacturing to shipping taking place in the same UK factory. This approach allows them to remain agile with stock management and product testing,

ensuring a top-notch customer experience. Reflecting on their journey, Ashley suggests starting to sell other products earlier, hiring interns for administrative tasks, and implementing international shipping from the outset. They found success in their partnerships with companies like Three and Virgin, and emphasized the importance of reaching out to journalists early for strong PR. In terms of tools, They rely on platforms like Slack, Gmail, Clavio, Shopify, response source, and Google Docs for their day-to-day operations. Ashley recommends keeping your minimum viable product, MVP, simple, maintaining a lean business model until your idea is validated and being cautious with outsourcing expenses. Learning how to do things yourself and calling in favors can go a long way, especially in the early stages of a startup. Let's delve into the success story of Deskmate, a startup that defied the odds and became a thriving

business. Let's uncover three key principles that have propelled this company to where it is today. Principle 1. Identifying a gap in the market. One of the fundamental reasons behind Deskmate's success was their ability to identify a gap in the market. Ashley J.P. Lockwood and his partner, Arthur, were working from a London co-working space when they realized the lack of affordable standing desk solutions in the UK. They didn't just complain about it. They saw an opportunity and seized it. This principle teaches us that success often begins with keen observation and the courage to address unmet needs in the market. Principle two, lean approach and hands-on involvement. Deskmates founders took a lean approach to their business. They didn't overcomplicate things or outsource too early.

In fact, they did a lot of the work themselves, including building their initial website in just two weeks. They understood the importance of being intimately involved with every aspect of their business, especially in a niche market like standing desks. This principle emphasizes the value of hands-on involvement, as it allows entrepreneurs to fully grasp their product and make informed decisions. Principle three, diversified customer acquisition channels. Deskmate's success is also attributed to their diversified customer acquisition channels. They didn't rely on just one strategy. They divided their efforts into three main sections, B2C, B2B, and wholesale.

By tailoring their marketing techniques to each market and leveraging digital advertising, PR, and strategic partnerships, they maximize their reach and attracted a wide range of customers. This principle reminds us that a well-thought-out and diversified approach to customer acquisition can be a recipe for success. So there you have it, three key principles that contributed to Deskmates's remarkable journey, from a side hustle to a thriving standing desk startup. Identifying market gaps, adopting a lean approach, and diversifying customer acquisition channels have been instrumental in their success.

These principles are not just valuable for Deskmate, but can serve as a guiding light for aspiring entrepreneurs in any industry. Let's now dive and talk about how anyone can apply the same principles that propelled Deskmate's success to their own business ventures. Identifying a gap in the market. The first step to applying deskmates' success, success principles is to keep a keen eye on the market. Look for areas where there are unmet needs, underserved customer segments, or gaps in existing solutions. Start by observing your surroundings,

talking to potential customers, and conducting market research. This proactive approach can help you uncover opportunities that others might have overlooked. Remember, success often begins with identifying problems you can solve. Lean approach and hands-on involvement. Once you've identified a promising opportunity, adopt a lean approach. Don't overcomplicate things or rush into outsourcing tasks. Instead, roll up your sleeves and get personally involved. Take the time to understand your product or service inside out. This hands-on approach will not only save you money, but also give you valuable insights into your business. It's about being resourceful and making informed decisions based on your deep knowledge of the field. Diversified customer

acquisition channels. To reach a broader audience and maximize your chances of success, diversify your customer acquisition channels. Taylor your marketing strategies to different customer segments and markets. Explore various avenues such as digital advertising, social media, partnerships, and outreach to both consumers and businesses. By casting a wider net, you increase your chances of attracting diverse customers who value what you offer. Remember, a diversified approach allows you to. adapt to changing market conditions and stay resilient. Incorporating these principles into your business endeavors can provide you with a solid foundation for success. Whether you're starting a new

venture or looking to revamp an existing one, the experiences of Deskmates serve as a valuable roadmap to guide your journey toward entrepreneurship and growth. Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you're listening now. Remember to stay curious, continue to forge your own path, and subscribe and follow startup gems to be the first to access stories that will fan the flames of your entrepreneurial passion.