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Marla Malcolm BeckCEO and Founderbluemercury, inc.
HOW TO BUILD A BRAND, RAISE PRIVATE EQUITY, AND GET A RETURN
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ENTREPRENEURSHIP KEY FOR JOB GROWTH
“And so, my fellow Americans, ask not what your country can do for you - ask what you can do for your country.”
-President John F. Kennedy Inaugural Address
“Our research into the early years of business formation consistently shows how vital new firms are to our economy, and this data should give policy-makers and budding entrepreneurs alike great hope for how we can solve our current crisis — create and grow jobs through entrepreneurship.”
-The Kauffman Foundation
Studied Political Economy
UC Berkeley
1993 - 1995 McKinsey
Business Analyst
Class of 1998Harvard Business School
Harvard Kennedy School of Govt
Summer 1996Jakarta,
IndonesiaSmall Bus Dev
Summer 1997U.S.
Office Products
Life Changing Summer Job
• Worked for USOP Founder, HBS class of 1983
– Financier/Entrepreneur – “Anything is Possible”
– 1st public company, rolled up hundreds of office products companies
– To date has taken 10 companies public
• Met Managing Director from the Carlyle Group, USOP board member
• Met over 30 entrepreneurs who had founded and sold their companies
CAREER PATH
1998Tech Boom
1999Internet Frenzy
2000Bubble Bursts
September 1998 Ebay goes public June 30, 1999
59 IPOs for internet companies YTD including ivillage.com, priceline.com, barnesandnoble.com
March 10, 2000NASDAQ Peaksat 5132
January 11, 2000 AOL acquires Time Warner
1998 Graduate HBS
May 14, 1999Start bluemercury as internet company with $1MM in Seed Capital
September 1999 Acquire store, switch to clicks and bricks strategy
Summer 19993 e-commerce beauty sites launch Eve.com, beauty.com, gloss.com
October 20, 2000Eve.com shuts down after raising >$30 MM in capital
THE FOUNDING THE INTERNET CRAZE
BUSINESS MODEL
SephoraTrendy Superstore
bluemercuryFriendly, expert, honest service
Neiman Marcus/SaksHighest end luxury products
Format •Self-service•6-10,000 square feet
•Assisted open-sell •2,000 square feet
•Counter by counter•2-5,000 square feet
Staffing Model •Part-time •Full-time career driven product junkies
•By brand
Clientele •50% under age 25 •Average age 38•Average income 130K
•Affluent •Aspirational
Merchandising •Young and fun •Kit driven
•Technical skincare•Makeup artistry driven brands•Niche imports
•Well-known brands
Point of Difference •Selection •Expert advice •Spa services
•Exclusive luxury brands
2001
Feb 2001 Store
#3 opened
#4 Opened
#5 Opened
#6 ,
7, 8
Ope
ned
#10,
11,
12
Ope
ned
Raised $900K Angel Capital
Raised $1.6MM in Angel Capital
Equity RecapitalizationJune 14, 2006
2002 2003 2004 2005 2006
Key Success Factors1. Angel capital = strategic, operational and financial control2. Extremely low overhead3. Cash flow and EBITDA focus
STEADY STORE GROWTH
2. Get in the game.
1. Experiment with your summer job.
3. “DROOM” - Jon Ledecky, HBS ’83
4. Do something you love. (Makes it easy to stick it out)
5. The first year is the hardest.
6. Avoid GBF mentality.
7. Angels are your friend.
8. Competition makes you stronger.
9. “Nothing’s good forever.” (Take $$$ off the table when you can) -Dick Darman, HBS ’67
10. You CAN have it all.
TOP 10 LESSONS FOR HARVARD MBAS
YOU CAN HAVE IT ALL!
2001
Raised $900K Angel Capital
Raised $1.6MM in Angel Capital
Equity RecapitalizationJune 14, 2006
2002 2003 2004 2005 2006
October 6, 2002Wedding
June 18, 2003Daughter Born
May 16, 2005Daughter Born
June 2007Son Born
Feb 2001 Store
#3 opened
#4 Opened
#5 Opened
#6 ,
7, 8
Ope
ned
#10,
11,
12
Opene
d