Wednesday, December 25, 2024

College Friends’ Side Hustle Earned Over $20 Million Revenue

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This Side Hustle Spotlight Q&A features Justin Soleimani, 34, and Zach Dannett, 35. The duo met as classmates at Emory University and then went on to co-found Tumble. Their Los Angeles-based company sells machine-washable, spill-proof rugs and scaled from zero to $20 million in revenue within 2.5 years. Today, Tumble boasts a team of 10 and mid-eight-figure sales. Responses have been edited for length and clarity.

Image Credit: Courtesy of Tumble. Justin Soleimani, left, and Zach Dannett, right.

What was your day job or primary occupation when you started Tumble as a side hustle?
JS: I was a consultant at Bain & Co., a global management consulting firm that provides strategic advice to Fortune 500 companies. I advised companies across multiple industries, including biotech, consumer goods, entertainment and private equity.

ZD: I worked at Noble House as head of merchandising. While I was there, Noble House grew to become one of the largest ecommerce home furnishing companies.

Related: They Met By Chance and Learned Their Grandparents Had Been Business Partners. It Led to a Side Hustle Surpassing $1 Million in Year 1 and 2 Multimillion-Dollar Brands.

When did you start Tumble, and where did you find the inspiration for it?
JS + ZD:
We started developing Tumble in the fall of 2019, about 18 months before our official launch in April 2021. The idea grew from our frustrations with traditional rugs, which we found difficult to maintain, and the washable alternatives, which had their shortcomings. After speaking with dozens of customers and analyzing thousands of reviews, we identified common pain points like insufficient cushioning, curling corners and challenges in keeping the rugs flat. Although many washable rugs were marketed as convenient, the reality often involved heavy furniture rearrangement, turning a simple task into a hassle. To address this, we not only focused on making our rugs stain-resistant but also prioritized developing safer, non-toxic materials and earning environmental certifications that ensure they’re safe for children and pets.

Image Credit: Courtesy of Tumble

How long did Tumble remain a side hustle before you took it full-time?
JS + ZD:
We dedicated about a year to working long nights and weekends before launching our crowdfunding campaign. During that time, we visited various sewists in Los Angeles as part of our prototyping process, allowing us to test the product right here in the U.S. There were countless back-and-forths and iterations with suppliers in Asia before we reached our desired final product. We remember walking down the streets of LA on a hot summer day, carrying an 8×10′ rug draped over our shoulders to the sewist — definitely some hands-on, nitty-gritty work, but it was all worth it in the end.

Throughout that year, we focused on various critical aspects: securing manufacturers, refining prototypes, filing patents, conducting customer research, determining our product category and creating financial projections. We transitioned to full-time just six months before officially launching the company in April 2021.

Related: In Her Late 30s, She Pursued Another Creative Side Hustle — Then Turned It Into a Multimillion-Dollar Business

What were some of the key steps you took to launch and grow your business?
JS + ZD:
To launch Tumble, we utilized crowdfunding as a key mechanism. This approach allowed us to gauge product-market fit, gather insights into our customers’ design and size preferences and raise capital to place larger orders with manufacturers. Our goal was to get our products into the hands of as many people as possible quickly, which helped us shorten the feedback loop — a big-bang approach.

We completely bootstrapped the business, investing our personal savings alongside the funds raised through crowdfunding for our initial purchase order. Our focus has always been on profitability; we have never raised outside capital, and the company remains fully owned by the founders and our employees.

Because we prioritized profitability and funded the business through cash flow, we ran the business with no full-time employees for the first two years, relying on independent contractors and agencies to meet our needs. We navigated the challenges posed by Covid, including supply chain disruptions and economic uncertainty, while maintaining profitability in a volatile environment.

After two years, we invested more in our team, bringing core capabilities in-house to build resilience. This has laid the foundation for the next phase of our growth, which includes expanding into new product categories, exploring additional sales channels and entering markets outside the U.S.

Image Credit: Courtesy of Tumble

What were some of the biggest challenges you faced while building your business, and how did you navigate them?
JS:
One of the most significant challenges we encountered was the impact of Covid on our supply chain. As a new company during this period, we faced constant changes in regulations affecting manufacturers and shipping. Prices soared, the economy was uncertain and ports were frequently closing. Navigating these disruptions as an emerging brand with limited resources was particularly challenging.

ZD: For the first two years, we couldn’t engage with our international suppliers, which added to the difficulty. We relied heavily on our international team and our suppliers to ensure that products shipped on time and met our quality standards. Strong communication and collaboration were crucial in overcoming these hurdles.

Related: Teen Brothers Started a Side Hustle on Facebook Marketplace That’s on Track for $1.2 Million This Year: ‘Quit My Job and Went All In’

What does growth and revenue look like for Tumble now?
JS + ZD:
As a result of our success and profitability, Tumble has scaled to mid-eight figures in revenue, with a clear path to reaching nine figures—all achieved in under four years. We plan to expand into new product categories in 2025 and explore new sales channels and markets. Additionally, our team has grown to over 10 members in the U.S.

What do you enjoy most about running Tumble?
JS:
Bringing new ideas and products into the world. It’s always exciting to brainstorm concepts and then see them come to life while observing customer feedback and usage daily. Reading reviews and comments makes the process incredibly rewarding. I also take great pride in building a team and creating a workplace where people feel proud and excited to be part of Tumble.

ZD: Running a business is full of ups and downs — the path to success is never linear. Facing adversity and new and changing landscapes is the reality of any business. And within these challenges lies the fun.

Every new market we enter and every new product we create presents its own challenges and an opportunity to dive deep, learn and create.

Almost five years in, as our business is rapidly changing, I can confidently say that this is the most exciting time for Tumble, and the future has never looked brighter.

Image Credit: Courtesy of Tumble

What’s your advice for others hoping to start successful side hustles or full-time businesses of their own?
JS
: My advice is to be willing to fully commit to an idea, even if you don’t have 100% certainty that it will succeed. You need a strong desire to make it happen. Choose something that resonates with you —something you’re willing to invest your time and energy in — and then take the leap. Be open to the idea evolving over time, but you must be ready to step off the ledge with your initial concept. It’s also crucial to choose the right moment to make that leap; for example, we worked on Tumble for a full year before going all in. By then, we had built confidence in our idea, and crowdfunding helped us gauge consumer interest early on. It’s about being thoughtful and strategic when taking that leap.

Related: These Sisters Started a Side Hustle After a ‘Light Bulb Moment’ Led to a ‘Versatile’ Product. Now It’s Done Over $45 Million in Sales.

ZD: Don’t fear “failure.” Many people see business as a binary outcome (success or failure). But in reality, some things work, and some things don’t. You need to approach setbacks as challenges and opportunities to improve. If you keep solving more problems than are created and learn every day from your failures and successes, you have a good chance of succeeding.



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