$48 million in 48 months: The Amazing Story of Hush Blankets

How the two founders managed to succeed with a simple formula

How did the two founders succeed in such a short time?

The short answer is that they had their customers in mind in each decision they made. And they used a strategy that is so simple yet so brilliant in making it happen.

Aaron Spivak and Lior Ohayon are the founders of Hush Blankets. They saw an opportunity of the weighted blankets, Lior once volunteered in special needs camp. And he saw firsthand how weighted blankets are used to relieve stress.

The science of how the blankets are helping with stress is with Deep Touch Pressure Stimulation (DTPS), which is backed by research, and can help people fall asleep faster and deeper, and that can impact the quality of their life.

And since almost 60% of people suffer from insomnia, stress, and anxiety, their product can benefit people and make them successful at the same time.

They only had a little money to invest in the business, but they were determined to make their product after they researched the potential market.

They started with only one sample and a pre-order list and bought Google ads.

They bought the expensive keyword (Weighted Blankets).

They were lucky at the start. At the very beginning of 2017, they managed to make 3 sales, which was amazing in their eyes. Then the sales grew to $30K then $60K a month.

But their luck was about to run out.

First crisis

The upcoming month was July. And it’s the hottest month of the year in Canada. So the sales stopped.

Overnight the sales went to 0. It was devastating for them. And the inventory cost was burning through their budget quickly.

Lior even talked to Aaron about closing the business. But luckily they did not.

You can’t blame them for doubting the business and the potential to overcome it. Since it appeared that the business was seasonal and they already had their run. And it was time to end it all.

The revelation

Aaron had an idea, which would be the cornerstone in the building of their brand and would be the future reason for their success.

He picked up the phone and started calling their existing customers.

Simple right?

Yet it is overlooked most of the time.

So he picked up the phone and started calling. He asked the customers why they stopped buying. And the answer was mostly that the weather was too hot and they didn’t use it. And that they would be using it once winter comes.

During the calls, he asked the customers if they were to a cooling blanket would they buy it?

And the answer was Yes!

So with a validated product idea, they started working on a cooling blanket.

They researched cooling material. Asked manufacturers and tested so many materials.

And once they found the perfect material to make their cooling blankets. They ran into another problem.

The fabric was going to cost $100,000 for one roll. They didn’t have this kind of funding. And they didn’t want to bring in another investor. And they wanted to keep %100 of the business. They knew that the product would sell since they already knew the customers would buy.

They started a crowdfunding campaign on Kickstarter.

Their goal was $100,000, but here comes the surprise.

They managed to raise $1 million in only 3 days. The campaign would eventually raise $1.6 million.

When asked how they managed to market their campaign, They answered that they already had a list of 3,000 who would buy it. And they backed it up.

So in the first year, they made $600,000 in sales.

And in the next year would make $3.2 million in sales. With a margin of around %32.

And they were contributing to charity to help their community. Which is both beneficial for the charities and their brand story.

Storytelling was helping their brand to help loyalty. Which is a great lesson in itself for upcoming businesses.

The big break

They wanted to get in front of a bigger audience. So they made their way into a show that they knew their demographic would be watching.

So in 2019, they competed in the Canadian hit show. (Dragon’s Den)

Their pitch was amazing. With the Dragons trying out their blankets and pretending to fall asleep.

They told their story And told the Dragons the number of their business. They were impressed.

With a small bidding war among the Dragons. They managed to raise $400,000 from two Dragons. The funding was mostly for Research and Development. And raising their evaluation of their company to $5 million.

But that is not the only thing that was great about their appearance on the show.

They went viral. With the picture of the Dragons wearing their blankets. They broke the internet.

Lior would say later, “It took us to the next stage, quickly. It put us in front of millions of Canadians overnight, essentially doubling or even tripling our business. It’s not just being on the show. It’s the social proof and being able to tell our customers, who now trust us more.”

After that, they launched yet another product. The Hush Pillow. And they sold 3,000 pillows in 72 hours.

They would continue to ask their customers what they would want and make it. Building a strong connection with their backers. And building customer loyalty.

I can’t stop being amazed at what they managed to do with this simple strategy.

In 2020 they would roll out another two products. The Hush Ice Sheets, And The Ice Blanket 2.0, Made $20 million that year in sales.

The End game

Around 2021 they wanted to sell their business. And they needed a new product to raise their evaluation. After yet another survey from their fans, they landed on a new product idea. A mattress in a box.

For them to make a product that would solve an existing problem. One of the most common complaints from their customers. That their mattress was uncomfortable during lovemaking with their partners.

So they started working on it. Researching spring technology and zone technology. Until they made a mattress that would guarantee comfort.

With this successful product, they had a call from one of the biggest mattress companies in Canada. Sleep Country Canada.

And they sold the majority share of their company raising their evaluation to $48 million. The deal is that they sold %52 of their company for $25 million, And sell the rest of the shares in the upcoming year.

Starting from 2023 they would sell another %16 every year with the evaluation of that year. Which can make them make more than $48 million on that deal. And that success is almost guaranteed given their track record.

And above all that they were still contributing to charities. Donating 1 in every 10 blankets sold. And during the pandemic, they made contributions to struggling businesses. Giving them resources to market their business.

Key takeaways

1. Always talk to your customers, they are your best resource.

Not only are they the people who buy from you. But they would give you feedback to improve your products, And even give you ideas for new ones. Giving you insight into potential gaps in the market. That your competitor might not be aware of.

2. The power of storytelling.

During their journey, they always kept using social media to make people feel that they were a part of the story. And everyone loves an underdog.

They were documenting their journey and that made people feel like they know the people behind the product.

3. Attention is essential.

Their move to go in front of a wider audience by going where their demographic would be watching gave them one of their biggest breaks.

The move to go to Dragon’s Den made them jump higher and make even more fans.

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