Hippy Tree on Shop-Eat-Surf
Nice piece by Tiffany on Shop-Eat-Surf yesterday.
While many startups don’t want to share financials (and many shouldn’t), all surf/skate/snow/hacky-sack brands that think they’re going to hit it big and buy a house in Bali next year should read this part of her piece:
Funding: The company is self-funded with bank loans and revolving loans from friends and family. HippyTree produces two seasons a year, and borrows money to fund production, then pays family back with interest as soon as stores pay for the clothes. They do not take preseason orders, and instead hit the surf shops one or two months before the clothes, which are produced domestically, are ready.
So far, they have sold out every season. “We have yet to make a poor decision on forecasting,” Andrew said. “Our margins cover what we are doing.”
Revenue was $100,000 last year, a little more than expenses, and all the profit went back into the business.
We have a Hippy Tree calendar in the office and not only does it tell us what the tides are like (so we can miss the great summer surf), but it looks solid as well.
Keep at it Hippy Tree, there’s definitely room for smaller brands to come up.