Do you wish you were the guys who came up with the idea for the Crocs shoe phenomenon? They weren’t the only ones to hit big with the ugly, but comfy footwear. Sheri Schmelzer, a stay at home mom from Colorado, had an idea to decorate her kid’s Crocs using the holes to her advantage. Soon her creative idea became a business.
From Fortune Small Business:
There are 26 million pairs of Crocs in the world, more than 80 percent of them speckled by holes, and many of those shoes are on the feet of accessory-friendly youth. Jibbitz, as the charms (and the company) came to be known, can be anything — peace signs, flowers, you name it — to please a demographic eager for variety.
Within weeks, the Schmelzers set up a website for sales. By the end of the summer, they were funded by home equity, with their parents working the assembly line in the basement.
A little over a year later they sold their business to Crocs for $10 million and an additional $10 million earn-out if they hit their earnings targets as a subsidiary of Crocs.
Why didn’t I think of that!!
Thanks for your insightful post, Jeff. I work for a Chicago-area nonprofit, Winning Workplaces, which helps small and midsize organizations create better work environments. We’re continually amazed by startups like Crocs that are able to turn out an innovative product and a profit virtually overnight because of a great idea with a niche market, smart marketing, or a combination of these qualities.
I thought your readers would be interested in the news of our partnership with The Wall Street Journal in setting up a Top Small Workplaces recognition program to honor exceptional small organizations throughout North America. The press release providing details of this program is located at: http://www.winningworkplaces.org/aboutus/releases/release101206.php.
We are accepting nominations of Top Small Workplaces through January 2007 on the Journal’s StartupJournal website: http://www.startupjournal.com/about/entryform.html. Any business with fewer than 500 employees and annual revenues of less than $200 million are eligible.
Thanks again for this post. Here’s to hoping that Croc’s Shoes and similar ventures are able to retain the magic of their mission and values as, inevitably, their staffs grow and their execution becomes more complex.
Hi Jeff,
Just a quick note to let you know that the nomination process of our Top Small Workplaces recognition program with The Wall Street Journal wraps up on Wednesday this week, Jan. 31. Employees and employers can still nominate an organization by visiting http://www.winningworkplaces.org/topsmallbiz/index.php.
If you could help us spread the word during the “home stretch,” we’d greatly appreciate it. If you have any questions, please let me know.
Best Regards,
Mark Harbeke
Manager of Content Development
Winning Workplaces
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