Mike Faherty's deep engagement with overseas factories while at Ralph Lauren built strong personal relationships. These factory owners later became his new brand's first investors and manufacturing partners, a crucial advantage for a startup.

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By developing and owning the exact specifications for their fabrics—from the yarn to the finish—Faherty can move production between different manufacturers. This de-risks their supply chain from tariffs and geopolitical issues, as the "makers become less important."

Instead of starting in a kitchen, CPG entrepreneur Emma Hernan bought a manufacturing facility first. This generated revenue by co-packing for other brands, secured her own supply chain, and created multiple income streams from a single asset before her product even launched.

Instead of rushing in, the founders spent over a decade preparing. Mike learned design at Ralph Lauren, and Alex learned finance on Wall Street. This patient, deliberate skill acquisition provided the foundation for their venture.

While surrounded by high-growth, venture-backed DTC brands, the Faherty founders learned from those same founders that their slower, more controlled growth was an advantage. This perspective reinforced their decision to avoid the "grow at all costs" pressure of VC funding.

Facing limited capital, Faherty leaned on wholesale. They used factoring—getting advances on purchase orders from established retailers like Nordstrom—to manage cash flow and fund production, a capital-efficient alternative to dilutive venture rounds.

Value-add isn't a pitch deck slide. Truly helpful investors are either former operators who can empathize with the 0-to-1 struggle, or they actively help you get your first customers. They are the first call in a crisis or the ones who will vouch for you on a reference call when you have no other credibility.

For hardware startups constrained by working capital, building deep trust with a manufacturer can be a form of financing. Belkin's founder convinced his manufacturer to produce and hold inventory on their own books, allowing Belkin to pull stock as needed without having to fund it all upfront.

Before gaining traction in major US department stores, Faherty received unsolicited interest from prestigious Japanese boutiques. This early international demand provided critical validation and accounted for 40% of their initial wholesale business.

To compete in department stores, Alex Faherty personally visited all 10 initial Nordstrom locations. He told the brand story directly to salespeople, recognizing they were the ultimate gatekeepers to customers and their buy-in paid long-term dividends.

Paranoid about quality control with their first Alibaba supplier, Unbound Merino's founders flew to the factory for the initial production run. This seemingly inefficient act of being physically present built a strong personal relationship that became their primary safeguard for quality.

A Ralph Lauren Designer Built Factory Relationships That Became His Startup's First Backers | RiffOn