Hero Cosmetics: $630M Success Story of Mighty Patch

Opening: Providing samples helps customers experience benefits firsthand. Quote: "

The key with this product is that once you get it in someone's hand, and they try a patch and it works, that person is a customer for life.

" Takeaway:

• Use sampling to encourage trial and build loyalty.
• Target demographics through ambassadors.
• Ju's sampling strategy built a loyal customer base.

Opening: Bootstrapping can lead to better control and equity retention. Quote: "

I mean, we were profitable early on... we're always just cutting bigger POs to have more inventory on hand.

" Takeaway:

• Retain ownership and control by self-funding.
• Reinvest profits to fuel growth without external capital.
• Ju's team grew efficiently before seeking investment.

Opening: Timing can play a crucial role in growth opportunities. Quote: "

I mean, I think we were so lucky in many, many instances. Like, you know, I think the timing of when we launched, the timing of when we sold...

" Takeaway:

• Market timing can influence success.
• Recognize and leverage the right moments.
• Ju attributes success partly to launching at the right time.

Opening: Effective supply chain strategies are crucial during disruptions. Quote: "

It was a nightmare... every day we're trying to just triage an issue whether there was delays with ships... or the ports were shut down because of COVID outbreaks.

" Takeaway:

• Proactively increase inventory to prevent stockouts.
• Anticipate delays and adjust orders accordingly.
• Ju's team secured inventory to ensure supply.

Opening: Evaluate investment offers critically, even in tough times. Quote: "

They were just very investor friendly, very founder unfriendly.

" Takeaway:

• Be cautious of terms that harm long-term interests.
• Not all capital is beneficial; consider walking away.
• Ju's team rejected bad offers, preserving equity and control.

Opening: Concentrating on core offerings strengthens market position. Quote: "

She said, no, you should not do that. You should stick to patches, you should dominate this category.

" Takeaway:

• Focus on dominating your niche first.
• Avoid diluting efforts on new products too early.
• Ju doubled down on patches, leading to greater success.

Opening: Low-cost marketing strategies can drive early traction. Quote: "

We ran ads... Gifted influencers, press back then was a big one... I took their emails and I would pitch them.

" Takeaway:

• Leverage influencer gifting and press outreach.
• Use DIY PR tools and personal pitching.
• Ju's persistent outreach led to significant exposure.

Opening: A team with diverse, complementary skills strengthens a startup. Quote: "

It actually turned out that we have very complementary experiences and skills... I had corporate marketing, Dwight is a technical engineer, and Andy is a creative person.

" Takeaway:

• Assemble a team covering key business areas.
• Diverse expertise enhances problem-solving.
• Ju's team covered marketing, tech, and design.

Opening: Validating market demand is crucial for startup success. Quote: "

I started doing research and I just saw all these Reddit threads... people talking about these hydrocolloid patches. Oh, you know, I can't get them here.

" Takeaway:

• Use online forums to gauge interest.
• Identify unmet needs through community discussions.
• Ju found demand via Reddit, indicating potential success.

Opening: Identifying a gap in the market can come from personal experiences and observations of unmet needs. Quote: "

After that first use, I was like, why is this not more available or well known, like it works so well, so much better than anything I've used before.

" Takeaway:

• Personal pain points can lead to viable business ideas.
• Questioning absence of solutions can uncover opportunities.
• Ju realized the US market lacked effective acne patches.