Feather is a furniture subscription startup that offers access to furniture through a rental business model. The company aims to solve furniture waste caused by ownership and cater to people who want the flexibility of subscribing to furniture. Feather started with a small selection of items and relied on TaskRabbit for deliveries. They have now shifted to a subscription model, allowing customers to pay monthly for access to furniture. Customer interviews and observations have helped the company understand customer preferences. Scaling a company with physical products requires a strong software infrastructure and internal handling of operations. Expanding to multiple markets can provide testing and learning opportunities. Hiring in a logistics-heavy business should be based on the founder's skills and expertise gaps. Scaling Feather has brought unexpected challenges and the need for continuous learning and improvement. Counterintuitive advice for startups includes being highly focused on a goal while seeding opportunities. After YC Demo Day, founders should set goals, evaluate progress, and be prepared for the challenging transition.
Intro
- Jay Reno is the founder and CEO of Feather, a furniture subscription service.
- Feather's core idea is that people no longer want to own things.
- Feather's business is driven by this belief.
Opting out of owning furniture
Opting out of owning furniture is a growing trend driven by changing aspirations and a desire for freedom and flexibility. This shift is fueled by rising costs, increasing debt, and a cultural shift towards not owning stuff. Furniture waste is a problem in the US, with disposable furniture that doesn't fit or transport well being commonly purchased. Feather, a furniture subscription startup, offers access to items that people may not be able to afford or choose to purchase. Even those with the means to buy higher-quality furniture often opt for cheaper options like IKEA.
Feather's prototype
Feather's prototype aims to solve furniture waste caused by ownership through a rental business model. Key points include:
- Testing if people prefer subscribing to or renting furniture instead of buying and disposing of it
- Prototype includes merchandising and visual aesthetic built using Shopify and a low-cost engineer from India
- MVP cost around $2,000 to $3,000.
How much did he make from his MVP?
- Jay Reno, founder of Feather, started his furniture subscription startup as a side project while working full-time.
- Sent out a Facebook blast to friends and received interest from people he didn't know.
- First two orders were from friends, followed by a friend of a friend.
- Small sample size gave Jay confidence in his product's potential.
How many products did they have?
Feather started by offering a selection of four or five items per product category on their website and delivering them themselves. They relied on TaskRabbit for deliveries and valued industry feedback.
Legacy competitors
- Legacy furniture rental companies have been around for 40 years, but they primarily cater to corporate relocation and have an unappealing aesthetic and user experience.
- Feather, a furniture subscription startup, saw an opportunity to target people who are currently buying furniture but actually want the flexibility of subscribing to it.
- This subscription model falls between short-term rental and full commitment of purchasing.
Changing branding from RentFeather.com to LiveFeather.com
Feather, the furniture subscription startup, is changing its branding from RentFeather.com to LiveFeather.com. The company shifted from a rental model to a subscription model, allowing customers to pay monthly for access to furniture. The goal is to provide flexibility for customers who don't want to commit upfront to ownership. The monthly payments contribute towards owning the items, but customers can also return them at any time.
Customer interviews and learnings
Customer interviews are crucial for understanding customer needs and preferences. In-person interviews and observing product usage provide valuable insights. Furniture choices are influenced by room aesthetics and comfort. The variety of colors and shapes in furniture is less important than accessories and details. Feather, a furniture subscription startup, offers a curated selection of choices.
Scaling a company with physical products
The most profound aspect of scaling a company with physical products is the need to respect logistics and the operational intensity of the business.
Key points:
- Many venture-backed companies fail because they underestimate the complexity of delivering real products to customers.
- Heavy reliance on software is necessary for managing inventory, reverse logistics, and optimizing routes.
- Inefficient methods like TaskRabbit for delivery are not sustainable in the long run.
- Building a robust software infrastructure is crucial for long-term success.
- All aspects of the company's operations, including warehouse management, truck fleet, and full-time employees, are handled internally.
- The company currently operates in three markets: New York, San Francisco, and Los Angeles.
Why expand to other markets vs focus on one?
Expanding to other markets vs focusing on one
- Starting in one market and expanding to others can provide opportunities for testing and learning with low overhead.
- Despite challenges, success can be found in multiple markets.
- It is important to hone in on existing markets before expanding further.
- Launching in a third market can solidify growth and provide a playbook for future expansion.
- The video provides insights for founders considering expanding their business to new markets.
Who to hire and when in a logistics-heavy business
The most profound aspect of the topic is that the order in which employees are hired in a logistics-heavy business depends on the founder's strengths and skills.
Key points:
- Hiring should be based on balancing the founder's skills and filling in expertise gaps.
- Bringing on talented individuals is crucial for a solo founder.
- A strong back-end infrastructure is important as the business scales and becomes more complex.
Unexpected learnings from scaling Feather
Scaling Feather, a furniture subscription startup, has brought unexpected learnings. The challenges of managing a growing team and the need for continuous learning and improvement have been highlighted. Balancing different roles and skill sets, as well as delegating responsibilities, are crucial. The speaker reflects on the demands of their role as a founder and the emotions it evokes.
Feeling his role change over time
- Transition from early stages of startup to later stages
- Focus shifts from passion and dedication to scaling and process improvement
- Need for structured meetings and providing value to team leads
- Shedding initial "grit and get it done" mentality
- Importance of building processes for scale while maintaining functionality
Counterintuitive advice
Counterintuitive advice for startups is to be highly focused on a particular goal while also seeding as many opportunities as possible. This approach allows for unexpected opportunities and luck that can be capitalized on. Key points include:
- Reach out to industry professionals and cold email CEOs for feedback and potential partnerships.
- Plant seeds in different places to gather evidence and conviction for pursuing startup ideas.
- Remain true to the initial vision while making necessary tweaks along the way.
- Don't be concerned about big companies copying your idea if it is complex.
- Small upstarts are more likely to attempt replicating your model.
Advice for YC founders after Demo Day
After Demo Day, founders should continue setting goals and maintaining a growth mindset. It is important to stick to these goals and constantly evaluate progress. The transition after YC can be challenging as there is no longer a supportive environment, so founders should be prepared for this change. Despite raising funding, there may still be a period of adjustment and potential feelings of loneliness. However, it is crucial to stay focused and motivated during this time.
- Set goals and maintain a growth mindset
- Continuously evaluate progress
- Be prepared for the challenging transition after YC
- Utilize available support and don't rush into the next phase
- Stay focused and motivated despite potential feelings of loneliness.