For new physical product companies, the best manufacturers are often too busy and risk-averse to work with newcomers. Conversely, factories that are overly eager for an unknown startup's business may have underlying quality or reliability issues.

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.

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.

The founders delayed institutional funding to protect their long-term brand strategy. This freedom allowed them to avoid paid ads, which a VC might have demanded for quick growth, and instead focus on building a more powerful and sustainable word-of-mouth engine first.

Rather than viewing retail partners as mere buyers, Beekman 1802 treated them as strategic consultants. They actively asked for guidance on scaling production, finding labs, and co-manufacturers, leveraging the retailer's expertise and vested interest in their success.

For D2C fashion brands, the inability of third-party suppliers to quickly fulfill reorders on trending products is a key trigger for vertical integration. Larroudé's co-founder realized the cost of one large factory order was equivalent to buying the machinery himself, enabling them to meet demand in weeks, not months.

When the founders learned that major competitors were buying their shoes for reverse engineering, they correctly interpreted it as a signal. This confirmed their innovation was significant and created urgency to find a strategic partner and scale before being copied.

Venture capital can create a "treadmill" of raising rounds based on specific metrics, not building a sustainable business. Avoiding VC funding allowed Donald Spann to maintain control, focus on long-term viability, and build a company he could sustain without external pressures or risks.

Instead of trying to invent everything in-house, HOKA's founders understood that in the footwear industry, the true innovators are often the materials suppliers. They leveraged deep relationships to convince foam manufacturers to create a new, softer material that hadn't been done before.