Scaling Smart: How Sara Blakely Grew Spanx by Betting on Herself, Not Investors

Breaking Boundaries

Women redefining success and inspiring others to reach new heights.

The 'X Factor' of Scale: How Sara Blakely Built Spanx from Scratch to a Billion-Dollar Empire

Think big, scale fast. That’s the ‘x factor’ Sara Blakely leveraged as she took her wearing-white-pants problem to the market with Spanx. From 5 to 10 figures without venture capital funds, she invested her $5K savings, cut the feet off pantyhose as her prototype and DIY’ed to test and refine her shapewear product into a billion-dollar company.

Her brilliance wasn’t only in putting profitability first, but in seeing patenting as marketing. Flying in the face of unconventional wisdom, she kept her consumer product on the down low for a year to achieve U.S. patent status before launching her company.

Blakely also understood the difference between sales and marketing. She translated her door-to-door sales experience with fax machines no less and put herself in front of the customer. There was no paid ad spend, but a tailored product (and sales pitch) based on customer feedback. 

And her face time didn’t stop with customers. Blakely showed up at factories in the face of rejection and at retailers to ensure the prime placement of her product. Her Rosie-the-Riveter, roll-up-her-sleeves business building approach made all the difference in her profit margins. She bet on herself more than anyone and got 100% of the payoff before selling in 2021.

Now, Blakely is taking her ‘x factor’ to shoes with her new hybrid sneaker/stiletto, Sneex, and empowering women entrepreneurs through the Sara Blakely Foundation.

Need to Know

• 📈Women-led venture funds are on the rise! Check out 60+ Top Women-Led VC Firms from American Entrepreneurship Today.

• Network with 1K+ women who are thriving in tech at the Accelerate Conference in NYC on 11/7. Use their Ask Your Boss cheat sheet to snag company approval.

• Ditch the pitch for 💰. Get paired with a seasoned entrepreneur for an Oprah-style interview to cover your deck in a fun and relaxed atmosphere at The Startup Ladies 3rd annual #InvestInWomenFounders 2024 Summit on 12/5 in Indianapolis, IN.

• Is your biz making a dent in women’s mental and physical health? Flexible funding from $1M-$5M via Actions for Women’s Health. Read more about Melinda Gates’ $250M fund here.

Industry Updates

• The gender pay gap is wider than it's ever been in two decades. It’s a $14,170/year loss according to the U.S. Census Bureau. And even more so for women of color.

• Philadelphia women-owned businesses hit $875M revenue record across 83 businesses in the metro area.

• Ending pitch decks as we know it? Mom-daughter co-founders launch Musa to “alter the funding landscape and bridge the trillion-dollar funding gap that disproportionately affects diverse entrepreneurs.”

• Loom acquired by Perelel. The 34th Black woman to raise $1M+ in VC, Erica Chidi, now an advisor to the Femtech startup, sought a company with more clinical acuity for women’s 360 care.

• Introducing Community Development Financial Institutions (CDFIs): Mission-driven financial institutions that lend when traditional ones hesitate on women entrepreneurs.

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Founder’s Note

As I work on funding my business, Smply, I’m inspired by Sara Blakely who bootstrapped Spanx to a billion-dollar business before selling a majority stake in 2021. She's a good example of how being scrappy and unconventional can be successful. It can happen. And it can happen to you!

Key Insight: :It's okay to grow slowly if it means maintaining 100% of your company and 100% of your vision. Bootstrapping may get a bad rap, but there’s nothing wrong with betting on yourself and yourself alone.

Next Steps: Take a peek at your business plan for the next 5-10 years. Can you sustain what you're trying to grow? If you can carry on without seeking outside funding, be okay with it. There’s no shame in slow growth mode. 

Tip for Fellow Founders: Don’t fall into the comparison trap. Everyone's path is different. Comparison can mess you up, aka your mindset, confidence and why, when it comes to business building. Don’t compare the inner workings of yours with the glossy outside shine of someone else’s biz.