Welcome to another episode of the Startup Junkies podcast!
In this episode, Caleb, Jeff, and Matthew have a conversation with Colin McIntosh, founder and CEO of Sheets and Giggles. The company sells environmentally sustainable bedding and emphasizes giving back and creating a better world. Tune in to hear the guys talk about what sets Sheets and Giggles apart, maintaining company culture through growth, and how Colin made the business plan for his company in the middle of a date night with his then-girlfriend. You do not want to miss out on this exciting episode!
Shownotes
(1:16) Introducing Colin McIntosh and Sheets and Giggles
(6:40) Sheets are part of the perfect business model
(8:29) Why eucalyptus lyocell?
(13:08) What sets Sheets and Giggles apart?
(16:40) Impact investing
(18:40) Reflecting on the entrepreneurial journey
(21:30) Maintaining culture through growth
(24:59) What is the end goal?
(30:38) Advice for the younger self
(32:55) Wrapping up
Links
Quotes
“The content that we do is insane compared to the rest of the space. And if it makes us laugh, if it makes me laugh, it goes. And that’s, I think, the thing that other brands don’t see…When you’re on Instagram and you’re scrolling, I’m not going to stop for the same thing I’ve seen a thousand times, but I might stop if I see a guy sleeping in a bathtub for an allegory about the amount of water that cotton sheets use.” (14:29)
“I would love to look back in five years and say that we built a large, national brand that does a lot of good in the world and is very well-respected and makes a lot of people laugh….Whether that’s a public company or a subsidiary of Mattress Corp, you know, like I’m pretty agnostic about that, as long as we can achieve the goal.” (26:43)
The Sheet in the Bedding Industry
Sheets and Giggles is the brainchild of entrepreneur Colin McIntosh. While watching War Dogs, Colin began deconstructing one of the character’s business models — selling bedsheets out of his pickup truck. Colin paused the movie and wrote a complete business plan for a bedsheet company that night. Part of this plan was coming up with a name – Sheets and Giggles – and buying the domain for a website. This practice was not uncommon for Colin.
Four months later, the startup that Colin worked for laid him off. Colin spent the rest of the week creating his perfect business model. He wanted to enter a large commodities market that was already established so that he would not have to build a market for his product. He wanted a highly fragmented market space so that he had a real opportunity to grow into a significant player in his market. His product would be physical retail, allowing him to take it online for direct-to-consumer sales. The space would be flat and dull so that he could zig while other brands zagged. His products would be sustainable, with a vertically integrated supply chain. Lastly, his product would not contain technology so that he would not need coders and software engineers.
Colin wrote out his ideal business model and looked through the domains that he owned. One domain checked all the boxes: Sheets and Giggles. Bedding was a $12 billion market that was growing 10% year over year. The top five players owned only 27% of the market, and the product was mostly bought in physical retail. There was little to no brand loyalty and no switching costs. Colin had found the perfect product for his idea business model. Three weeks after being laid off, Colin incorporated Sheets and Giggles.
Three years later, Sheets and Giggles has seen considerable success. Now, they are doing over $1 million each month, and they have found ways to survive through the pandemic. The company’s success has allowed Colin to continue giving back, one of his original goals with his business plan. This year, Sheets and Giggles has donated $40,000 to COVID relief in Colorado. They have donated hundreds of sheet sets to homeless shelters in the Denver area, and they have planted over 30,000 trees in regions experiencing deforestation. In fact, Sheets and Giggles plant a tree for every order they fulfill.
Sustainability is not a passing thought for Colin but one of his core values. Sheets and Giggle sheet sets are made from eucalyptus trees. The bedding is composed of lyocell fabric, and they harvest trees from sustainably managed and biodiverse farms. The company’s packaging is 100% recyclable, and it is the only bedding company in the world that does not have any plastic in its packaging. Initially, the packaging did involve plastic, but when Colin heard customer feedback regarding this, the company changed its course.
For more information on Sheets and Giggles, visit their website.
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