Turning a $30,000 Loss Into a $9 Million Success: Lessons Learned

In my first entrepreneurial attempt, my business fizzled out almost as soon as it was conceived.

Back in 2017, while juggling my job as an investment banking analyst at Citi, I embarked on creating Mei—a beauty booking app designed to connect users with makeup artists and hairstylists. After investing $30,000 and a year of dedication, the app never saw the light of day.

Meanwhile, I was also operating an online business selling custom acrylic makeup organizers under the brand Étoile. Unlike Mei, Étoile was catching on without much effort. This was the opportunity I decided to seize.

After two years, I left my corporate career to focus entirely on Étoile. I expanded the brand to offer beauty accessories tailored for enthusiasts, transforming our product line into essentials that enhance everyday beauty rituals. Last year alone, our revenue exceeded $9 million, with our products now featured in nearly 30 Anthropologie stores nationwide.

Pursue Business Ventures in Your Areas of Passion

My love for the beauty industry drove me to dive into the world of Mei, even though I had no prior experience in app development. The idea's allure was undeniable, but creating a tech app was far from my strengths or interests. I was out of my depth.

When the project demanded more than I anticipated in terms of time, energy, and financial resources, I found it hard to keep going due to a lack of genuine passion for the tech side. The shift to Étoile, which involved consumer products, was a natural fit for me.

Building a business in a beloved industry is essential because those fond moments will help sustain you through the challenges. My enthusiasm doesn't lie in technology, but in crafting products. This passion is what propels me past obstacles.

Ensure a Strong Product-Market Fit

Looking back, I realize that Mei lacked the crucial element of product-market fit. Booking stylists via text or social media direct messages is ingrained in consumer habits, and changing that wasn't straightforward.

Originally, Étoile was intended to offer a wide array of beauty items, including vanity mirrors and lighting. However, this approach led to an unfocused customer base.

Applying lessons from Mei's failure, I scaled back and concentrated on the profitable segments: our travel-friendly products. We now have a loyal customer base that feels excited about our offerings, and it markedly improves our business dynamics.

The Importance of Hiring the Right Talent

A significant financial oversight during Mei's development was failing to rigorously evaluate the developers we hired. As a novice, I naively assumed that anyone who had built an app before could meet our needs.

We ended up working with college students from different parts of the globe, hiring them sight unseen and relying on minimal background checks. Our budget constraints meant we had to opt for a scrappier team, unaware of the extensive variance in developer capabilities.

Although the mantra 'move fast and break things' guided us, I've learned that investing heavily in team assembly mandates thorough research.

Even now, hiring remains complex. Fortunately, with a larger budget than I had with Mei, we can partner with individuals who have proven track records alongside established brands. These improved resources have opened the door to superior opportunities.

Letting Go of Failures to Embrace Success

Acknowledging the failure of Mei was pivotal, requiring me to grapple with and accept the notion of failing.

Initially, I clung to Étoile’s product strategy, convinced that we could not retract lines after investing so much in production, storage, and marketing. Letting go felt like admitting defeat. But once I allowed less successful items like mirrors and tables to fall by the wayside, our business underwent a drastic transformation.

This experience taught me the importance of recognizing when strategies aren’t working and the benefit of adapting without ego.