This week, The Wall Street Journal reported that The Honest Company along with co founder, Jessica Alba, raised 100 million dollars, valuing the company at 1.7 billion dollars.
Ms. Alba co-founded the site in 2011 to sell nontoxic products such as diapers and toothpaste to consumers worried about the materials used in everyday household items. The Honest brand has become popular with parents who are willing to pay a premium to allay fears of exposing their infants to unnecessary chemicals.
Honest said earlier this year its sales grew to $170 million in 2014, up from $60 million in 2013. It sells more than 75% of its products through the Web. It is building up its store-distribution business, with items available in more than 2,500 locations, including Target stores.
What get’s under your skin? Have you ever shopped for something and said you know what I would really like is … and you proceed to describe it. But, it doesn’t exist. Or, you say – they really need to modify this product so it will do exactly what I need it to do.
Jessica Alba took one additional step and decided to solve the problem that was bothering her. And, four years later she has a significant business.
It doesn’t have to be a physical product. It can be a service or it can be a piece of software that performs a function. They are all potential business ideas that may produce wealth or income.
Do others share your sentiment? If so, you have a market waiting for your solution. Many shared Ms. Alba’s sentiment. The sales growth is proof.
Do you need a distribution channel? 75% of Honest Company’s sales are from the web. You can start the same way either with your own site or through other channels, including Amazon.com.
Does your product or service require an ongoing purchase? Even better! Honest Company has a monthly purchase program as well – a great way to generate recurring revenue.
It is important to note that one of Honest Company’s objectives is to have products that perform. This key core value allowed her to compete head to head with Amazon and win. Amazon.com produced a diaper promising “honesty” with respect to its origin; however, when it came to performance, it failed. Amazon.com pulled the product.
We live in remarkable times where ideas can be quickly turned into businesses. Start small and test your ideas; the