Take a Look at the College Side-Hustle That Grew to Become a Billion-Dollar Furniture Empire

Starting a side hustle is a way to earn some extra cash for most but for many others, it is also about pursuing a passion. These days, startups and side hustles have become popular as people now believe in working for their dreams and not just doing their monotonous jobs. There are many inspiring stories on social media, where the users share their experiences on how they built a million-dollar startup with a minimal investment. One such startup story can be found in Utah, where a person was persuaded to work for the ideas he got, sitting in his house. He started and experimented with his first-ever product from his basement and is now the owner of LoveSac, a multi-billion dollar flourishing business.

How was LoveSac born?

18-year-old Nelson had just graduated from high school, and  one day, while watching, “The Price is Right,” he had a "sudden, wild idea." As Bob Barker introduced "Showcase Showdown," Nelson thought how funny it would be to watch the show in a massive bean bag that covered the whole floor.  "The more I thought about it, the more I knew I had to act on it, " writes Nelson in Utah Business.

He immediately went down and bought fabric for the same. He sewed the whole thing and in three weeks, finished it, with the stuffing from soft house materials. To his utter surprise, people loved it and everyone around him wanted the product for themselves and their families. Nelson registered the company with just $25. The company's journey began in his parent's basement where he and his friends used to roll fabric rolls and were popularly recognized as the LoveSac guys. But after facing challenges, Nelson and his team knew that they would not survive and thought of turning it into their primary venture. 

Hence LoveSac's first store was launched and customers loved it, helping the firm earn six figures in just a few weeks of launching. This encouraged them to open their store in Provo, Utah, then Las Vegas, Phoenix, and Southern California. Nelson's LoveSac had a couch placed in the corner to demonstrate how Sacs would appear in a living room and to his surprise every customer asked about the couch. Going further, he changed the size of the couch and named it Sactionals.

Becoming the fastest-growing furniture company

With its stores in 35-40 locations, Nelson was invited to be on Richard Branson's show, "The Rebel Billionaire" in 2005, from where he got a $1 million investment. They were happy, but they were also in a $2 million debt, some of which they paid off and raised some more funds through venture capital sources. The owner was devastated and thought of making some important changes in order to survive. They relocated the company to Stamford, Connecticut by reducing the workforce to just 12 employees and reinstated with just 12 stores, with new headquarters on the East Coast. They understood the business and their consumers and gradually expanded their location to 30 and then, 50. Just after the launch and success of Sactionals, LoveSac was named one of the fastest-growing US furniture companies by Furniture Today.

Taking a new approach

Nelson then shifted his business and took the approach of directly selling to customers which worked and in 2018, the company booked sales of $100 million with more than 80 locations. The company's profits upsurged and the estimated net worth hiked to $200-$300 million, which felt like a dream. As per the Wall Street predictions on revenue forecast, LoveSac made $700 million through its sales with its stock price, leaving everyone behind. In 2021, the numbers surged over $1 billion due to pandemic demand.

Nelson's advice to entrepreneurs

Nelson shares advice based on the life lessons he has learned in his journey till now. This includes listening to experts, but always trusting and following your gut feeling.

There are phases in life demanding big changes, be it personal or in business. You must leave behind your comfort zone and make fearless decisions to succeed. Don't stress on making profits. Instead, enjoy the journey and take breaks to relax because relaxing is important.