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JackThreads' Jason Ross: How a Kid from Ohio Took the Fashion World by Storm

Just a few years out of college, Ross took a bank loan and a business plan and created flash-sale shopping site for guys that now brings in millions.

By Lauren Drell

from  http://smallbusiness.aol.com/

 

 

Whoever said men don't like shopping probably never saw a man click through a JackThreads flash sale. Launched in July 2008, JackThreads is the brainchild of Columbus, Ohio-native Jason Ross, 29. In that time, the determined entrepreneur broke into the fashion industry (no small task for a Midwesterner with no connections), commissioned his alma mater to build a website and sold to Gen Y tastemaker Thrillist earlier this year to gain exposure to a 3 million man readership, while remaining CEO.

JackThreads has two to five new sales per day, featuring off-price goods in the streetwear and contemporary fashion category -- brands including The Hundreds, WeSC and Creative Recreation -- at discounts of up to 80 percent, a similar model to the wildly successful Gilt Groupe.

How did you get into entrepreneurship?

I went to Ohio State University and graduated in 2003 with a degree in finance, but I had a love for entrepreneurship and was involved in all the entrepreneurship groups. After graduating, a friend and I started a company, SMI Ventures -- Sports Marketing Innovations -- where we sold promotional products into the NCAA market. Basically, we were taking hats and rally towels and T-shirts with college-branded logos, and selling them to university athletic departments for promotional giveaways. We did that for two years and learned a ton about business, but we weren't passionate about the idea, and it was a very commodity, price-driven business. By 2005, we were able to double our investors' money and walk away to pursue other things that were more exciting and had higher growth potential.

And that's when you went to work on a business plan for JackThreads?

Yeah, and we hadn't written a business plan for SMI. Everybody stresses, "Write a business plan before you start a company!" but we were young and naive and didn't do it. Now I definitely recommend it. While I wrote the business plan for JackThreads in '06, I was working at bars, working anywhere I could find part-time money that would allow me to keep pursuing this dream. And I was always bouncing ideas off my friends and local VCs in Columbus.

Now, there are a ton of flash-sale concepts, like Gilt Groupe, but was that the case when you first started?

At the time, the whole concept of a shopping club was only in Europe, and that's actually how the whole idea came about -- I saw a business working well in a European market. This whole private shopping club wasn't here in the U.S., so we set out to create it and apply it to a niche that didn't have any outlet for their close-out goods. We launched in 2008, just after shopping clubs hit the U.S., which was exciting because it showed us that we were on to something. Gilt Groupe launched in 2007, and by that point, we were already well on our way.

How did you finance the business?

Before the financial crisis in 2008, I was lucky enough -- or the banks were dumb enough -- to get a personal loan. I also had my own money from SMI, which wasn't much at all, and the money I had from the odd jobs I worked while I did the business plan. So it was a combination of self-funded, personal debt and a whole lot of bootstrapping. I went to the computer science department at OSU and convinced the professor to have the class build my website in spring 2008.

You were acquired by Thrillist in May 2010. How did that come about?

We launched July 31, 2008, and in October we were featured in Thrillist for the first time, so as a business we saw the power of having our brand in front of their audience. Over the next year, we did whatever we could to get the Thrillist editors to write about us more and more, because we saw how many sign-ups were generated from that press, and we also saw that those people were buying repeatedly -- it's a very valuable audience. A year later, I became an advertiser on Thrillist, and we saw some more success. I then approached their marketing team about doing something on a higher level, in terms of a revenue share or a partnership, and it became official in May.

They bought a portion of JackThreads, so they own an amount of our company, but we operate as two different companies. I'm still heavily involved -- I still run the business and I'm still a shareholder. The value for JackThreads it that we now have access to this massive audience of guys that's closing in on 3 million, and we're plugged into some really deep resources and infrastructure that have been built by Thrillist over the past five years. We've seen massive growth since the acquisition -- our business has doubled, our membership has doubled.

What was the biggest challenge in developing JackThreads?

For one, breaking into the fashion industry with no connections from Columbus, Ohio?! That was extremely difficult, to say the least. It was just a matter of persistence and paying money to travel to trade shows and see the same people over and over again, and working hard to improve the pitch.

Why do you stay in Ohio, when the fashion world and a lot of Thrillist's readers are in New York?

We stay in Ohio because 75 percent of our team is there, and it's cost-effective from a production standpoint and from a logistics standpoint. And it's not really hurting our team to have an office in Ohio and one in New York. We're building out a team in New York City more focused on PR and retail, because a lot of the brands we work with are based in New York. So it does make sense to have a presence here, but we have warehouses just outside Columbus. The Midwest is known as a distribution hub, so it's very easy for us to get orders anywhere in the country in a timely manner.

What's been the most exciting aspect of JackThreads?

After that two-and-a-half-year journey, the point of launch was unbelievable. We had a website and six brands that wanted to work with us! We built strong relationships with the brands we sell, and the niche we're in -- better streetwear and contemporary fashion -- didn't really have an outlet for their off-price goods at the time. So that's where we come in. They look at us as a trusted partner at the end of a season that can move their goods in a way that prevents brand dilution. Now we have more than 250 brand partners!

It seems like you're naturally entrepreneurial. Do you come from an entrepreneurial family?

No, my father is a West Point grad and a police officer and knows zero about business, and my mother also wasn't in business. But I did see some uncles foray into business, and it just seemed like the natural path for me. I found it in college when I was searching for what major I wanted to be, and once I became educated on entrepreneurship, there was really no other option for me. It was going to happen one way or another. I had no idea how to start a company, but I made a pact with myself that I had to figure it out. That's how it all started, and if I weren't doing JackThreads, I'd be an entrepreneur in some way, shape or form.

What entrepreneurs do you look up to?

You read about Bill Gates and some of the big ones who've been incredibly successful, and that's always exciting, but to me, when I was in college, it was more the guys who were taking advantage of the Internet bubble and all the excitement that surrounded the tech boom. That was what I really honed in on, what I wanted to do long term.

Entrepreneur Spotlight

Name: Jason Ross

Company: JackThreads

Age: 29

Location: Columbus, Ohio

Founded: 2006

Employees: 20

Revenue: Between $5 and $10 million

Web site: www.jackthreads.com

Top Executive Salaries in America

By: Matt Buttell, Web Editor

From: http://meettheboss.tv/

Over the past three decades, executive compensation has risen dramatically, far surpassing the wage of the average American worker.

In a modern US corporation, the CEO and other top executives are paid salary plus short-term incentives or bonuses. This combination is referred to as 'Total Cash Compensation' (TCC). Short-term incentives usually are formula-driven and have some performance criteria attached depending on the role of the executive. For example, a CEO's could be based on incremental profitability and revenue growth.

(Click Graphic to View Full Size)

A variety of people and companies appear in AFL-CIO's list of 100 highest paid CEOs in 2009 from technology to food and consumer goods, to healthcare.

Leading the way

Leading the way, is Oracle Corporation, a multinational computer technology corporation, which by 2007 had the third-largest software revenue, after Microsoft and IBM. They gave their CEO Lawrence J. Ellison a total compensation package leading the way at $56.8 million.

Ellison founded Oracle in 1977, putting up a mere $1400 of his own money, under the name Software Development Laboratories (SDL). In 1979, the company was renamed Relational Software Inc., later renamed Oracle after the flagship product Oracle database. Oracle has faced its tough times though, 1990 saw it laying off 10 percent of its staff and having a near miss with bankrupcty. Over the year, Ellison has turned his company round. This year has seen the European Union approve the acquisition by Oracle of Sun Microsystems and has agreed that "Oracle's acquisition of Sun has the potential to revitalize important assets and create new and innovative products."

Then you have the likes of Proctor & Gamble in the list, a multinational company which manufacturers a wide range of consumer goods, and who is early 2010, became the forth largest corporation in the US by market capitalization, surpassed only by Exxon Mobil, Microsoft, and Walmart, who paid their former CEO, A. G. Lafley a total of $23.6 million in 2009, his last year before retirement.

Mentioning Walmart, their former CEO made it on here too. In 2009, their CEO, H. Lee Scott Jr brought home $30.1 million in compensation, which was mainly made up of his salary alone. But in actual fact, 2009 saw Scott leaving the company in the January. Walmart frequently came under criticism by the media and the public during Scott's tenure. Lafley is largely credited for turning around P&G during his tenure under the mantra 'Consumer is Boss'. During his leadership, sales doubled, profits quadrupled, and P&G’s market value increased by more than $100 billion dollars.

Only woman

The only woman to feature on the list is Brenda C. Barnes, CEO of Sara Lee, and previously the first CEO of PepsiCo North America. Barnes has been making a name for herself for a number of years now, having been ranked in Forbes list of 'The World's 100 Most Powerful Women' since 2004. Then in 2009 she appeared at number 29 in Forbes list of 'The World's 100 Most Powerful Women'.

Barnes has shown that after taking time out to raise a family, you can also achieve a career - a very successful career to be ranked. In 2009, Barnes raked in $15,231,519 in total compensation. By comparison, the average worker made $40,690 - she made 374 times the average worker's pay.

Justifying the numbers

To put this in even greater perspective even our nation's top political executive, President Barack Obama, earnt little over $400,000 last year. The debate as to whether CEOs warrant such astronomical salaries will undoubtedly rage on, even more so in the wake of such a devastating global recession. But surely, they must be doing something right...

11 of Our Favorite Businesses From TV Shows

By Focus Editors

From: http://www.focus.com/

Readers always hear about real-world companies who are notable or exemplary in one way or another, but what about the businesses that stand out on our favorite television shows? Sure we might not be able to visit them, but these fictitious businesses were each unique in their own special way, and many of them helped make they shows what they were. Who can forget South Park's City Wok or Sienfeld's Vandelay Industries? While these are only runners up for our list, it's businesses like these that inspire humor, drama and crucial plot development in many famous television series. Today we explore 11 of the most memorable businesses from popular television shows.

The Kwik-E-Mart

Despite the sign out front, the Kwik-E-Mart was clearly the Simpson's take on 7-Eleven. In fact, in 2007, 7-Eleven converted 11 of its locations into Kwik-E-Marts in celebration of the movie. Run by Apu Nahasapeemapetilon, the mart sold everything you needed on the go, including Krusty-O's snacks, Sprinkalicious Dounuts, and even the famed all Syrup Super Squishee. Apu was always courteous, friendly and never forgot to thank you and remind you to "come again."

Strickland Propane

More than any other business on this list, King of the Hill's Strickland Propane represents fair, honest, old fashioned business ethics. With the womanizing party animal owner Buck Strickland hardly around to help the team, business usually falls into the hands of the always-enthusiastic Hank Hill. Hank is a no BS manager who stands for integrity in all areas of his work and strives to serve the customer in any way possible. As Hank once said to a client, "It's kind of interesting, the word customer begins with 'C-U.' Well we don't 'see you' as just another sale, but as a member of our team."

Planet Express

Planet Express is the interplanetary delivery service that the popular show Futurama revolves around. The company is lead by eccentric old scientist Professor Hubert Farnsworth and staffed by the main characters of the show, including Bender and Fry. The crew of Planet Express frequently visit the most dangerous, uncharted, and just downright weird corners of the universe to deliver their packages, such as Tarantulon 6, Brain Slug Planet, and Nude Beach Planet. Although the team may get into hilarious misadventures along the way, the deliveries always get made. If only we could say the same of our terrestrial mail carriers.

Acme Corporation

Acme was a fictional manufacturing company from the Warner Brothers classic cartoon, Looney Toons. Acme made everything one could imagine, from exploding golf balls to anvils, cannon balls to bricks. Acme actually stands for, "A Company that Makes Everything, and in almost every episode the Toons chased each other around with something mischievous made by this fictitious conglomerate. Nintendo has recently released a video game honoring the legacy of crazy devices sold by Acme known as, "Acme Arsenal," in which players get to battle each other with Acme branded products.

The Drunken Clam

The hard working man needs a good watering hole to hang with his buddies at. The Drunken Clam is the most popular spot in Quahog, Rhode Island to down a few brews and tell some stories. Almost everyone in Family Guy has found themselves at The Drunken Clam at one point or another, but Peter, Quagmire, Joe and Cleveland are the most frequent customers. Who can forget the time Peter and friends sung Don't Stop Believing at the Karaoke night, or the time Stewie and Brian crashed through the front of the bar? Throw in occasional appearances from the peg-arm, peg-leg pirate and you've got one of the most comical places to get a drink around.

The Lanford Lunch Box

Founded in 1992 on the hit sitcom Rosanne, The Lanford Lunch Box was a diner opened and run by Rosanne Connor and her sister Jackie Harris. The two pooled their money to buy a coffee shop that also sold sandwiches. Filled with gossip and tons of sarcasm, the Lanford Lunch Box reminded one of those quiet home town diners where the waitresses would actually have a conversation with you while you ate.

Binford Tools

Appearing on 90's sitcom Home Improvement, Binford Tools was the sponsor of Tim "The Tool-Man" Taylor's television show, "Tool Time." Binford Tools never failed to furnish new gadgets for Tim to hurt himself or destroy the set with. One has to wonder why Binford didn't mandate that only co-host Al Boreland was allowed to handle the tools, but we can only imagine that its because their management had a great sense of humor. One of the more memorable Binford funded projects was the Binford 6100 Man's Bedroom. The Man's Bedroom came complete with bar, astro-turf and mesquite barbecue grill night-stand.

Bada Bing

Bada Bing is the fictional strip club from HBO series The Sopranos where many underhanded deals were made and mafia plans hatched. Owned and operated by Tony Soprano's direct superior, The family would often meet at Bada Bing to conspire and set their "business goals." Tony's office was located in the back where most of the family meetings were held. Bada Bing was the scene of some intense moments during the series, including several deaths and many physical fights.

Central Perk

Every close group of friends needs a relaxing home base to meet up and unwind. Frequently home to bouts of complaining about the work day, inter-group drama, or deep romantic talks, Central Perk has seen Friends characters Joey, Chandler, Ross, Monica, Rachel and Pheobe at their best and worst. Interestingly, none of them ever talked about it, but somehow they always seemed to meet up there at the right times. It takes a great atmosphere and some damn good coffee to keep one group of friends coming to the same place day in and day out for ten whole seasons. Friends was so popular in fact that there are now several imitation Central Perk coffee houses located around the world in honor of this originally fictional business.

Dunder Mifflin

Dunder Mifflin is the paper company from TV comedy The Office. A fun and unpredictable work environment, Dunder Mifflin is the wet dream of every nine to five office drone in America. Who wouldn't love a wacky, spontaneous boss like Michael Scott, a dramatic office romance to become involved in, and of course, dancing the work day away at cafe disco. Sure, Dwight's power-driven antics might get a little old after a while, but every day would bring a new adventure, and it seems the team spends more times having fun and playing jokes on each other than working. They might not win the award for most efficient management practices, but they certainly have more fun than your average cubicle-ville.

The Springfield Power Plant

Run by maniacal old man Monty Burns, the Springfield Power Plant was a nuclear power plant featured on The Simpsons. With numbskull Homer Simpson in charge of safety inspection, the plant has come close to melt down several times. The Springfield Power Plant is so culturally significant because it represents how the average American sees their job. Many see their boss as ruthlessly selfish and uncaring, much like Burns. Most people actively look for ways to slack off without getting caught or extend their lunch breaks to the absolute limit, just as Homer frequently slept on the job and had toy birds press buttons for him. Lastly, Homer and friends bolt out of the door for happy hour at Moe's the minute their shift is up, and really, who wants to stick around at their job come 5:00?

25 Things I Learned About Business from "South Park"

focus.com — Over the last 12 years, the cartoon residents of South Park, Colorado have taught us about life, love, Canada, Saddam Hussein and yes ... business. Here are 25 things that "South Park" has taught the world about making a buck.

click here for this article: 25 Things I Learned About Business from "South Park"

World’s Largest Battery-Powered Truck Comes to U.S.

Written by Timothy B. Hurst

Smith Electric Vehicles to build electric trucks in Kansas City

Company officials at the UK-based Smith Electric Vehicles announced on Friday that they will begin manufacturing “The world’s largest battery-electric-powered truck” at a new plant in Kansas City, Missouri.

The battery-powered Newton will be the first vehicle to be produced at the new plant, but starting next year, the plant will manufacture an electric version of the new Transit Connect light-duty vehicle in collaboration with made by Ford Motor Co.

The Newton cruises at a top speed of 50mph, carries payloads up to eight tons and can last up to 150 miles on a single charge. The Newton also has a wheelbase of 3.9 meters and a turning radius of 14.15 meters, allowing it to make tight turns and making it ideal for urban applications.

Available in a range of body styles to meet specific customer needs, the Newton can even be fully refrigerated.

According to manufacturers, the Newton is perfectly suited for “depot-based fleets, engaged in lower-mileage, multi-drop collection intra-city operations on congested roads.” In short, don’t expect these to be taking the place of 18-wheel tractor trailers, but do expect to see them being used as delivery vehicles, logistics vehicles in and around airports, and as service vehicles around town.

The Kansas City location was one of several vying for the new plant, but the $3 million in tax incentives for Smith from the state of Missouri helped seal the deal.

Company officials said the new facility would create 200 green collar jobs within three years, with the first round of new hires receiving a starting wage of $44,236 annually. The company hopes to begin rolling Newtowns out of the new Kansas City plant by the third quarter of 2009.

World's 50 Most Admired Companies

Fifty companies that are loved by everyone

read more | digg story

Gatorade Confirms What We All Knew: Bulk of its Drinkers Are Nursing Hangovers

By Joe Eskenazi

Rest assured, whatever tinkering the Gatorade folks have done, they haven't altered the familiar piss color

A long time ago, in a county far, far away -- well, Alameda -- your humble narrator read the entire Associated Press style guide in one sitting. I laughed out loud once and only once -- at the example of when and when not to capitalize the "o" in olympics: "He went on a beer-drinking Olympics."

That phrase is relevant now, regarding the redesigned and re-branded Gatorade bottles starting to hit San Francisco supermarkets. In short, a lot more of us are going on a beer-drinking Olympics than to the real Olympics, and Gatorade's latest rollout acknowledges this.

Along with dropping the "atorade" portion of its moniker -- the sports drink now will go just by "G" -- the company has come up with a bevy of snazzy product lines that marketing folks might describe as "urban" without having to explain more. Anyhow, Gatorade Fierce is now called "Bring It," Gatorade X-Factor is now "Be Tough," and Gatorade A.M. is now "Shine On."

Beyond new packaging and merchandising, the end result of all this is to justify and lure folks who have no need to drink Gatorade into drinking Gatorade. Let's start with the A.M. -- sorry, "Shine On." There is only one reason to drink Gatorade in the morning and that's for the deep-down body thirst brought about by a hangover. Clerks at several grocery stores I hit up today acknowledged that at least 50 percent of the folks buying the drink at their stores are either hung over or plan to be (You don't need to ask someone about their itinerary when the items on the conveyor belt are hard liquor, beer, and Gatorade).

Gatorade's own marketing material conveys this message in a smarmy manner that just about breaks the unintentional hilarity gauge:

"Developed with morning flavors, the beverage helps morning exercisers to 'Shine On' during their workouts and will contain an excellent source (20 percent daily value) of vitamin C to help active people as they attack their day."

Where to begin? First off, with this glorified hangover relief product, the notion of "morning flavors" conjures up the signature day-after trifecta of halitosis, beer breath, and the aftereffects of that cigar you thought it'd be cool to smoke. (for the record, the product comes in "orange strawberry" and "tropical mango" -- surely the pillars of any American morning). As for the vitamin C, you could get four times that amount in a simple glass of orange or apple juice -- or match it with one big carrot. But, then, that's not urban.

Across the board, Gatorade's new varieties now have vitamins and antioxidants pumped into them. This is clearly a shot across the bow of the VitaminWater people -- who, like Gatorade, have made their millions making water taste good and convincing people to pay to drink what the taps disperse for free. It warrants mentioning that the second ingredient in Gatorade is still high-fructose corn syrup. In fact, a quart bottle of the stuff provides one-fifth of your daily sugar and sodium. That's not a problem if you're a high-caliber athlete running like hell and sweating commensurately. But for most of the folks traipsing through supermarket aisles and buying 200-calorie bottles of Gatorade, it is. That's why low-calorie G2 -- Gatorade for people who really have no business drinking Gatorade -- now has the vitamins you could get in, say, a handful of fruit.

One thing that hasn't changed, however, is the double-entendre that is the shape of Gatorade bottles. Click here. What do you see? Here's a hint: It's not Coit Tower.

Everything I Know About Business I Learned From Poker

Posted by Tony H. (CEO) Dec 27, 2008

EVALUATING MARKET OPPORTUNITIES

• Table selection is the most important decision you can make.
• It's okay to switch tables if you discover it's too hard to win at your table.
• If there are too many competitors (some irrational or inexperienced), even if you're the best it's a lot harder to win.

MARKETING AND BRANDING

• Act weak when strong, act strong when weak. Know when to bluff.
• Your "brand" is important.
• Help shape the stories that people are telling about you.

FINANCIALS

• Always be prepared for the worst possible scenario.
• The guy who wins the most hands is not the guy who makes the most money in the long run.
• The guy who never loses a hand is not the guy who makes the most money in the long run.
• Go for positive expected value, not what's least risky.
• Make sure your bankroll is large enough for the game you're playing and the risks you're taking.
• Play only with what you can afford to lose.
• Remember it's a long term game. You will win or lose individual sessions, but it's what happens in the long term that matters.

STRATEGY

• Don't play games that you don't understand, even if you see lots of other people making money from them.
• Figure out the game when the stakes aren't high.
• Don't cheat. Cheaters never win in the long run.
• Stick to your principles.
• You need to adjust your style of play throughout the night as the dynamics of the game change. Be flexible.
• Be patient and think long term.
• The players with the most stamina and focus usually win.
• Differentiate yourself. Do the opposite of what the rest of the table is doing.
• Hope is not a good plan.
• Don't let yourself go "on tilt". It's much more cost effective to take a break, walk around, or leave the game for the night.

CONTINUAL LEARNING

• Educate yourself. Read books and learn from others who have done it before.
• Learn by doing. Theory is nice, but nothing replaces actual experience.
• Learn by surrounding yourself with talented players.
• Just because you win a hand doesn't mean you're good and you don't have more learning to do. You might have just gotten lucky.
• Don't be afraid to ask for advice.

CULTURE

• You've gotta love the game. To become really good, you need to live it and sleep it.
• Don't be cocky. Don't be flashy. There's always someone better than you.
• Be nice and make friends. It's a small community.
• Share what you've learned with others.
• Look for opportunities beyond just the game you sat down to play. You never know who you're going to meet, including new friends for life or new business contacts.
• Have fun. The game is a lot more enjoyable when you're trying to do more than just make money.

---

I'm working on writing a fun poker/business book titled Everything I Know About Business I Learned From Poker. It's meant to be a short, fun, light-hearted book.

Please let me know what you think of the outline above and if you have any suggestions for other points I should include!

Also, I'd really like to include in the book real-life poker stories and business stories as they relate to the bullet points above. If you have any fun or interesting stories you'd like to be considered for inclusion in the book, please share your story by commenting below or emailing me at tony(at)zappos.com.

Thanks!

Tony Hsieh
CEO - Zappos.com