3Qs with Matt Rutledge of Woot.com
February 1, 2008
This week I posed three questions to more than fifty CEO/founders of startups in the Dallas area. Throughout the week I will post the responses of the best ones. If you are interested in participating in the future just drop me a line. Matt runs a sleeping little company called Woot here in Dallas ~ they are doing $117MM in revenue! WOOT!
Question One: Given the uncertainty in the financial markets (weakness of the dollar, high cost of oil, sub-prime mortgage mess, growing unemployment, possible recession) what changes (if any) will you make in your business?
We eagerly seek out sourcing (product) opportunities in periods of economic volatility. As a discount retailer and a opportunistic stocking cash-flush distributor periods of economic downturn for us are growth opportunities. Not to tap dance at a funeral but we’re projecting record growth and will double our workforce in 2008.
Question Two: What advice can you offer to ‘would-be’ entrepreneurs who are thinking about starting a business in the current economic climate? Would you start your business today? What would you do differently?
A recession market can be a great time to test an idea or start a new company. At an early phase of company growth, market share is much more relative to the strength of your competitors and competing ideas than it is economic conditions. You’ll find cheaper financing and with luck you may catch a strong wave of growth having established your core metrics in tough economic times. Yes, I would absolutely start a business today. An entrepreneur scared by global or even national economic metrics is like Tom Brady sitting out the Superbowl because it might rain.
Question Three: Are you using Facebook, MySpace, LinkedIn? What are you using these social networking tools for? Prospecting? Recruiting? Other?
I use LinkedIn casually for prospecting and recruiting as well as incoming contact like yours. I do not use Facebook or MySpace.
Company Background:
Company Name: Woot, Inc.
Year Founded: 2003
URL: http://woot.com
Key Personnel:
Matt Rutledge, CEO
Derek Chapin, CFO
Darold Rydl, ECommerce Director
John Wesner, Purchasing Director
Chris Klassen, IT Director, Wholesale
Jay Johnson, Sales Manager
Myles Bornstad, Director of Operations
Dave Rutledge, Creative Director
Luke Duff, IT Director, Retail
Invested Capital: Not disclosed.
Primary Investors: Not disclosed.
Revenue: $117MM (2007)
