This is what no one wants to mention about starting your own consumer brand:
**Logistics: you’re shipping here, there, and everywhere, and things almost always go wrong along the way.
A ship that offloads your container right before departing because it’s too full, rates that suddenly skyrocket, tariffs, and customs which decides to take more than a month to do a ‘random inspection’ (🤯)
You have to prepare for the unexpected, and not let it rattle you when it does.
**Inventory: you always either have too much or too little, never the perfect amount. Either you’ve got products you can’t keep in stock or you can’t move them fast enough and it’s killing your cashflow.
You have to analyze your stock position constantly and keep reforecasting, but predicting a sudden boom on TikTok Shop or a random celebrity mention that goes viral is anyone’s guess. The only real answer is staying flexible.
**Finance: financing a young growing physical products business is brutal. We’re up 100% year over year, and that means double the stock requirements.
Sales from last quarter need to finance double the inventory for next quarter. That only happens through profitable acquisition and a constant battle for financing that won’t break your unit economics.
**First order profitability is everything. It’s only when you realize you were losing $1.20 on average per new customer that you understand why you were tens of thousands in the red at year end.
Every unprofitable sale is another step in the wrong direction. Growth matters, but no one is bailing out unprofitable brands anymore.
You only have to look at Allbirds, from a $4b valuation to a sale at a 99% reduction of that, to see how quickly the smoke clears.
I’m not writing this as someone who has it figured out. The economics of consumer brands, especially hard goods like Cancha, are extremely difficult to make work.
Six years in, countless mistakes, and I’m still learning.
I write this because while I’m proud of where Cancha is and where we’re going, I’m also transparent about how hard building something like this really is.
There are no cheat codes, no tried and tested formulas, and I don’t pretend to have the answers. We’re battling through these problems every single day.
What matters is your perspective, humility in your decisions and, most of all, no regrets about how you got here.