Transcript
Brian Kano (0:00)
One of the hard lessons I got early in my career was that growth can actually kill a business that's not prepared for it.
Host 1 (0:06)
He helped scale nude from $100,000 a month to $8 million a month. And now he's leading marketing at True Classic.
Brian Kano (0:11)
I'm four weeks away from launching the first brand. That's how fast things are moving.
Host 2 (0:15)
I think there's probably a very small subset of marketers that would think to set up a measurement model that way.
Host 1 (0:22)
All right, we are back with another episode of Marketing Operators. I'm excited for a very special guest. Everybody's heard about True Classic. They do roughly a quarter billion dollars a year in revenue. They have raised at an $850 million valuation. Who we don't often hear from and why I'm excited to have him here today is Brian Kano. He's a founder of a DTC agency. He helped scale nude from $100,000 a month to $8 million a month. And now he's leading marketing at True Classic. He knows a lot about growth. Brian, thanks for joining today, man.
Brian Kano (0:50)
I'm excited to be here. Love to have it.
Host 1 (0:51)
And we got Connor rolling here as well.
Brian Kano (0:53)
How are you? I'm doing well.
Host 2 (0:54)
Got my. Got my drinks, got my gum and banana and everything else. I'm ready to roll, ready to learn from Brian.
Host 1 (1:00)
Fantastic. Fantastic. All right, cool. I want to jump in straight into some tactical knowledge that you've dropped over the years, Brian, and I'd love to kind of rehash here on the show. You've described your approach to scaling as the stair stepping method. What are the steps, what are the stairs of that method? And which one do you think most people get wrong?
Brian Kano (1:18)
Yeah, I think this was when I was scaling nude and it was describing the way in which we were able to grow the business and not kill it. One of the hard lessons I got early in my career was that growth can actually kill a business that's not prepared for it. There is a brand out of Australia that I was hoping bring into the US market. And the growth was. Was too good. And unfortunately, the business ended up having to. Basically we just. We ran out of product faster. The business had to invest heavily into production manufacturing. That increased the cogs as that increased the cogs with rush delivery and rush manufacturing ended up basically eroding the margin that we had forecasted and planned for in this business. Customer service was not prepared. So they, like, rush hired some. Some people and all of these, like, things that you don't think about behind the scenes. Beyond like the, you know, dashboards and north beam or triple whale and the spend on your platforms, those, those items started to surface up. So that was a very early lesson in my career and I remember going through that pain. And so with nood, it was really like this, forcing, forcing a discussion between finance and operations and making sure that our forecasting projections were really tight, that the man planning was buttoned up. We were meeting weekly, on a weekly basis and just having, you know, testing our assumptions, really debating them and almost getting into like yelling matches amongst us three of like, I don't believe you're going to hit that. No, I am. Look, I've got this stuff and like trying to really stress test what our beliefs were in business. So step one was starting with like planning and forecasting, making sure that we were all on the same page. Step two was having constraints when it came to our, to our scaling. So you know, when we set those targets and we said, hey, we need to have this roas and this contribution margin, it was really all sort of, it was all built for having cash flow for the business because at that point the business was starting to take debt to, you know, and establish lines of credit to have the manufacturing knowing that we were gonna, that we were growing and we were growing aggressively. And if we missed the target on the cash flow planning, then you know, that that has even more consequences with interest and with, you know, late payments and all these things. So making sure that we were only scaling when performance was strong was step two. And then I think this is the most important one was holding flat. So anytime we, we would, and this is why I call it stair stepping because we would scale up and then we would have about a week or two of just like maintaining and can we sustain and maintain that scale. And this was kind of like a checkbox to confirm for us that okay, this wasn't like luck, this wasn't like meta giving us a good week and then like next week's bad. And it also was enough time to surface all of those back end operational issues with customer service tickets with returns, potentially with fraud. And so that, that hold phase was kind of like that, that flat step. And that's really what gives us the confidence to go back to our forecast with finance and operations and say, okay, wait a second, I think we, we need to, we need to tailor this because we can be more confident or ooh, we're not actually as confident. We're starting to see a decline as after we scaled up. And it seems slow, right? It seems like A process that it's like, well, why don't you just go vertically up? That doesn't make any sense. But honestly, it what, it's what allowed us to create resilient growth at nude. And it's something that I think if you're going from like 10 million or even, even if you're, you know, less than that and you're trying to scale to 50, 80, 100 million, this is, that's that chasm that you've got across where if you do it well and you're prepared and you have the right planning, you can do it in the least painful way. I think there's a lot of pain for businesses and brands that go from 50 million or even 30 million to 80 or 100 million because you get all these quote, we call it growing pains, but really it's just bad planning. And I think it just comes from not having that experience. Right. Like once you go through that once you're like, I'll never do that again. And you, you tighten up the communication between your finance operations and your marketing teams.
