60 second start-up: Snugs

0-5 seconds: Sum your business up in a sentence:

We are establishing Snugs as the brand for custom fit earphones for the 2 billion smartphone users.  

Or to take a quote form one of our reviews: “Snugs are probably the best consumer earphones in the world” Financial Times.

5-10 seconds: What's the business model?

As the best custom fitted earbuds now created with 3D scanning, they never fall out, are really comfortable, shut noise out and deliver awesome sound quality. Snugs are custom fitted and personalised – just like a Saville Row suit – so the fit is perfect.

We’ve been retailing Snugs since May 2013. Our average order value is £164, so the business is scalable with improvable margins over volume. With manufacturing and stock outsourced, there are no tangible assets. No direct staff, and no salaries taken. Sales are driven by variable promotional costs and staff are self-employed keeping costs low. We have shown how to ‘turn the sausage machine handle’, now we are gearing up and scaling up.

10-15 seconds: Who are your competitors?

We are unique in the headphones market as nobody offers or promises what we do.  There are only legacy companies who are miles behind us in terms of technology. We are David and they are Goliath. David won!

15-20 seconds: What's your USP?

Snugs custom fit earphones are very comfortable and don’t fall out however active you are, guaranteed or your money back – no one else can truly say or deliver that.  We are the first to use 3D image scanners in the consumer market.

20-25 seconds: How have you funded it so far?

Originally, £47,000 of my own investment as a Directors Loan. Then £137,250 through 11 high net worth lead investors. Earlier this month Snugs was also open for investment on Crowdcube, the UK’s largest equity crowdfunding website.

25-30 seconds: What were you doing before?

I sold 10 million Yo-Yo’s in 1998 as owner of one of Britain’s leading active leisure retailers and wholesalers that I founded in 1989 – this was after leaving the London Stock Exchange.

For the past 10 years, I’ve been a management consultant to over 100 SME’s. I’m always looking for the next great product and Snugs is the best I have very come across.

30-35 seconds: Where did the idea come from?

One of my management consultancy clients was a the UK leading Audiology company who introduced me to professional in-ear monitors as used by Rock Stars and stage performers. I realised that 3D scanning and 3D printing could make custom fit earphones an affordable product available to the huge smartphone owning consumer market.

35-40 seconds: What's the smartest thing you've done so far?

Being persistent and maintaining clear vision of my strategy. Not letting the noise of others’ opinions to drown out my own inner voice.

40-45 seconds: What's the stupidest?

Listening to opinions of those who did not share my passion or vision.

British people have a habit of being so negative about new business ventures and always express an opinion on why an idea will fail. If you speak to people in California, they are full of positives for new ventures.

45-50 seconds: If your business was a biscuit, what would it be?

Jammy Dodger – Hard but sweet on the outside, soft and sweeter on the inside.

50-55 seconds: Which idea are you a bit jealous of?

Steve Jobs and his inspiration that built and re-built Apple. Someone who always listened to his inner voice.

55-60 seconds: Where are you going to be in 12 months' time?

Enjoying running one of Britain’s fast growing companies and being paid to do so. Building a successful business is one of the most creative things one can do. 

 

 

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