Mid-City
BUSINESS: Wireless audio products and rugged, portable, power accessories
FOUNDED: 2010
TWO-YEAR REVENUE GROWTH: 700 percent
2014 REVENUE: $8 million
Responses from Chief Executive Caro Krissman
What did you do to achieve this rate of growth?
Focusing on the power and authenticity of the brand. We have had relatively little
paid-in capital but leveraging the ability to grow distribution and make great, authentic products while knowing the brand is the main reason for all of it.
How did you manage the growing workload? For example, did you have to add space, hire more employees or move into new facilities?
We have added about 20 new people in Los Angeles and Orange County in the last couple years – a crew I am extremely proud of. Our logistics are run through Motivational Fulfillment in Chino Hills a great partner and Matson Navigation, the best sea freight carrier in the world. We have built our systems with the expectation of growth.
What were the biggest obstacles holding you back from growing? How did you overcome them?
Access to capital. We have partnered with Rosenthal & Rosenthal in New York (with L.A.-area offices) as our primary working capital solution. We factored with them for almost two years and now are with their asset-based lending division.
How do you manage expectations after such strong growth?
Keep growing and be highly profitable. Growth will flatten a bit for sure, but Ebitda will start to build up when it does.
What’s the most important lesson you’ve learned over the last three years?
Make stuff you probably want passionately and with a brand you love.
Is there anything you would have done differently?
Raising more capital at a higher valuation is one every entrepreneur would point to.
Does your location in the L.A. area help or hinder your growth?
I love Los Angeles and am a native. I love our team here, I love the area we are in right now (Picfair Village) and I am impressed with our mayor. All that said, Los Angeles is hard to do business in. The tax holiday was confusing – at best – and the gross receipts tax needs to go away for good.
