Hello and welcome back to the show. It’s Doone here, your host and hype girl! On the show today we’re learning from Elle Liu, the female founder behind Eucalypso.
Eucalypso makes modern sustainable bedding spun from 100% natural eucalyptus fibers for the perfect combination of silky soft, breathable, and ultra eco friendly. And they’re Designed for hot sleepers like me and people with sensitive or acne prone skin.
We’re talking about how she scaled her business to 7 figures while working a full time job, review sites and why they’re important for this category and her best and worst advice. Oh and tune into her 6 quick questions at the end where she tells us about a major fail she had recently and what she was able to learn from the process.
Elle's Story
Entrepreneurial journeys often begin unexpectedly. For one founder, it started with a dermatologist visit. Struggling with breakouts and random night sweats, the advice was simple: check your bedding. This prompted an unexpected dive into bedding solutions and uncovered a gap in the market. After researching, it became clear that there were limited innovations in the space. What began as a search for personal answers quickly turned into a business opportunity.
The Spark of an Idea
Never thinking of herself as an entrepreneur, the founder started looking at what others were doing in the bedding industry and realized there was an opportunity for something better. The first step? Learning as much as possible. Armed with the power of the internet and numerous meetings with textile manufacturers, she spent over a year traveling and researching, seeking a material better than cotton—something more sustainable and higher quality.
The breakthrough came when she found a mill in Austria willing to collaborate. All the while, she was still working a full-time job, determined to bootstrap the business. She set up a Google Adwords campaign and used her social network to spread the word. Just two days later, orders began rolling in.
Overcoming Skepticism
One of the biggest challenges? Convincing others to take a side hustle seriously. But despite the skepticism, she managed to grow Eucalypso into a six-figure business while still holding down her full-time role.
The Financial Journey
Starting any business requires an initial financial leap. The founder began by emptying her personal savings, with her parents offering some support. Altogether, she had $100K in capital to cover storage, raw materials, and marketing.
Her plan was to continue bootstrapping until Eucalypso could match her full-time job salary. It was important to her to maintain full ownership of her company. The reason? She didn’t want the pressure of external stakeholders. Accepting outside funding often leads to constant growth targets and external influences on business decisions. For her, running the business and creating a product was the most exciting part. Fundraising and pitching? Not so much.
She stayed in her full-time role until Eucalypso was generating enough revenue to ensure she could comfortably make the switch.
Marketing: The Key to Growth
Marketing became the backbone of Eucalypso’s growth. With experience from a past job at American Express, she had seen firsthand how successful marketing campaigns were run for small businesses. She knew she had to approach marketing from every angle: paid social, organic content, Google Ads, podcast ads, and PR. Even on a tight budget, she amplified the brand’s presence across multiple channels, focusing on a holistic, omni-channel approach.
The biggest revenue drivers in the past 12 months? Email marketing and Google Ads, specifically targeting audiences who had already expressed intent. These bottom-of-the-funnel tactics—engaging with people who were already aware of the brand—proved to be the most effective.
Customer Trust and Reviews
When it comes to bedding, trust is key. Customers rely on reviews to get a sense of how the product feels and performs over time. For Eucalypso, tapping into customer feedback became crucial. Reviews provided social proof, which validated the brand’s claims and influenced purchasing decisions.
Public relations also played a significant role in Eucalypso’s early success. The founder took charge of PR herself, creating enough buzz that media outlets started reaching out for coverage. This DIY approach not only saved costs but also helped her hone the story behind the brand.
Navigating Challenges and Lessons Learned
In an industry with high product costs and shipping expenses, the founder quickly realized that gifting high-price items was not sustainable. Instead, Eucalypso led with smaller products, like pillowcase sets, for sampling. This allowed potential customers to experience the quality of the product without the brand incurring massive costs.
As with any business, mistakes were made. One major lesson? Always listen to your customers. Initially, she chose a pink-beige color for a product, a compromise based on personal preferences. The customers hated it. This misstep highlighted the importance of thorough market research. Today, Eucalypso offers both pink and beige options separately.
Final Advice for Aspiring Entrepreneurs
“You need to spend money to make money,” she says. Early investments pay off when done right. However, not everyone will support your venture in the beginning. It’s easy to be discouraged when friends and family don’t immediately buy into your idea. But the key is recognizing that your product might not be for everyone. Success takes time, and often, it’s external markets that will validate your business, not your immediate circle.
Lastly, remember to enjoy the journey. For this founder, the most exciting part wasn’t pitching or fundraising—it was running the business and building something from the ground up.
