I Took A $2.5 Million Loan To Start A Fashion Brand - Now It Brings In $100 Million/Year
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- čas přidán 6. 03. 2024
- In 2014, business partners Matt Scanlan and Diederik Rijsemus drove into Mongolia's Gobi Desert with $2.5 million tied up in plastic bags. Their goal: purchase 50 tons of cashmere wool from nomadic goat herders for their new clothing company, Naadam. Today, Naadam brings in more than $100 million per year selling relatively affordable cashmere clothing. Its lowest-cost - and most popular - cashmere sweater sells for $98.
Produced by: Zach Green
Senior Managing Producer: Eric M. Clark
Senior Production Manager: Kathryn Mavrikakis
Additional Camera: Valentina Duarte
Editor: Marisa Forziati
Animator: Gene Kim
Reporter: Tom Huddleston
Additional Footage: Matt Scanlan, Naadam, Getty Images
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I Took A $2.5 Million Loan To Start A Fashion Brand - Now It Brings In $100 Million/Year
I appreciate Matt’s honesty. So tired of people pretending they just used boot straps.
A $2.5 million loan is bootstrapped lol
Not exactly...bootstrapping generally means your own funds to get the business going. Any outside capital isn't considered bootstrapped...but much respect to this man anyways.
@@brandondernoga3036 A 2.5 million loan is absolutely not bootstrapping. And they used their parent's house for collateral so that was outside help opposed to using his salary or something. Then they also got venture capital on top of that.
@@brandondernoga3036 private lenders bruh lol . He used his parents home as collateral lol talk about pressure not to fail
@@brandondernoga3036What is Bootstrapping? Bootstrapping is the process of building a business from scratch without attracting investment or with minimal external capital.
This is the story that most entrepreneurs want to live out: travel, discover yourself, connect with others, learn from others, make money while maintaining good business relationships
This !!!
Ah yes, the hard earned penny derived from your parents wealth.
Please rich parents
@@Betweoxwitegan He worked in finance and earned his money then saved. Y’all are lifelong victims ig 💀💀 Always gon’ be people in better positions, go cry ab it
@@Betweoxwitegan You noticed that too? Get a $2.5M loan from your parents. Check...wait...what? My parents gave me $400 to contribute to buying a used car so I could get to my first grown up job and I was grateful. Still, this is an inspiring story--cut out the middle man and pay the producer more than your competitors. Too bad we don't do the same with ranchers, etc., etc.
Im happy he acknowledged his luck, opportunity and help from parents combined with hard work.
But it does not mean what he did was merely based on his luck. What are you being happy for? That you can not be him because of lacking his luck?
@@VickyDong2359697 They love to down play white people's hard work and success and act as if the only reason a white person is successful instead of them is because of pRiViLeGe
@@VickyDong2359697 Not sure You read the comment correctly, Vicki. J mentions Luck, Opportunity, help from parents, and hard work. So its not based on luck as you mentioned. Also why are you questioning what they are happy for when its stated IE Matt Acknowledges he had help, and didnt act like it was 0 to Hero, like many play act. That said, maybe this is a language barrier issue.
The most important part of this story is that Matt was able to successfully take out a loan to jumpstart his business. Access to capital is the most underrated part of entrepreneurship or business in general. Congratulations to Matt and his team.
Props to the founders for paying 2x to the herders while lowering price for consumers. Amazing work
Yeah, honestly, his margins aren't very high when breaking down everything.
This is probably the best video I have seen on Make It. What I appreciate the most from this video, is that the owners own that their luck factor. It takes luck to be in a position to get a 2.5 M loan. It takes luck to drop out of college and get a job in the financial sector in NYC. It takes hard work and dare I say luck to build the right connections in Mongolia, China, Europe, and the USA to get a proper multinational business going as smoothly as theirs. I have rarely seen this large amount of hard work, and luck working in unison to build such a profitable business, while still being good for the Mongolian people.
I appreciate the fact that they built meaningful relationships with the Mongolian producers of the raw material, thus cutting out the middle man from the scene. The business model works on a good value system. Value is transferred to both the goat herders and the customers.
It takes courage to take a risk like this. A solid idea, fortitude and perseverance can take anyone a long way. Great job Matt!
Most won’t even get approved for 2.5 million loan
That's what I was saying.
To be approved for this amount of loan you must show enough collateral to pay back.In this case it was his parents' house. Nice parents!! 😅
I'm curious how he managed to drop out of school and still get a high paying job in finance(?). Must have gone to a top university.
Most would have ended up losing the $2.5M. The majority of new businesses fail within their first few years, this was a huge risk!!!
Matt and Diederick are some of the smartest people I've ever worked with! Wishing Naadam and those guys continued success.
He is the type of entrepreneur that keeps America going!
Nice job!
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
Any specific guide. I'm from Georgia how do I go about this? I think I'm interested how can I get in touch with Mr Brian Nelson
Thanks for the info. I'll reach out to him immediately
Securing such a massive loan undoubtedly involves risk. I bet managing finances and ensuring a return on that investment was a significant concern.
Investing wisely must have played a crucial role in this journey. What were your key investment decisions that contributed to the brand's exponential growth?
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I'm used to just buying and holding assets which doesn't seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I'm really worried about survival after retirement.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you'll need to be consistent and restructure your portfolio frequentl
In my opinion, it was much easier investing back in the 60s but it's a lot trickier now, those making consistent profit in these times are professionals reason I've been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My CFA 'Nathan Travis Cook', a renowned figure in his line of work. I recommend researching his credentials further.
Love stories like this, especially how they hadn't even gone out looking to start this business! ❤
I will never stop dreaming ❤.
This guy has balls of Steel lol. No way id risk my parents home for my business lol. I’m glad he succeeded. That’s huge pressure
This is super cool! What a great business. The sweaters look beautiful. ❤
WOW! CONGRATS GUYS! I'm building my Beach Hotel in the Philippines from scratch for several years now as a Security Officer in Seattle working 100 hours a week! Hard work and dedication and a vision! LET'S GOOOO!!!!!!!!!
"a small loan of a million dollars"
😅😅😅
Pocket change
Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject ..... Thanks to Gemorgina Lucas the lady you recommended.....
That is true my dear, Investment is the best idea presently and without it, human struggles are worthless.
I always wanted to trade for a long time but the volatility price has been confusing.
That woman totally changed my life for good. I have come across individuals but none is as honest as Georgina. So surprised you know her too.
SHE'S MOSTLY ON TELEGRAMS WITH THE BELOW NAME
@ms geocas
Love their story. The best ideas come from the most unexpected places. There are opportunities all around us.
Good to have rich parents
lmao
He's at least helping the farmers. What are you doing to help people?
Not rich enough to seed the 2.5 million ….respect the levels
Keep having excuses and stay were u are ..
@@esilsRICH THEY ARE DUDE..THIS IS FANTASY BABBLE
Fascinating story! Good for them. Great hustle!
I like these guys. 1) Acknowledging the massive risk (and luck) it takes to start and run a successful business, and 2) Paying the Mongolian goat herders what they deserve for the massive amount of value they create with their product.
Carrying 2.5 million in a vehicle for 32 hours is wild….i wonder if they hired armed security to escort 4:35 🤔
Such an uplifting story, success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
*@disney-hefner* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Gertrude Margaret Quinto, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I hope they use that profit to fight desertification happening in Mongolia
Great job! Very inspiring. I remember back in 2008 purchasing a cashmere sweater for $300.00 and wondering when somebody would disrupt the cashmere trade. Thank you
I love this story! How they were able to discover this culture, emerge themselves in the culture with respect and help these people economically. Amazing and inspiring ❤
Wow I want a Naadam sweater 😍. The crimson purple one
Come on, CNBC. A majority of people would never be approved for a 2.5 million dollar loan. Who is this video for, exactly?
Most people wouldn’t be able to take $2.5mm and turn it into $100mm/year. Takes skills and a lot of hard work too.
What a weird mentality
"a small 1000sqf apartment" :) but I am happy for them, amazing business with great mission!
He's disillusioned
Was just apartment hunting and realized I couldn’t afford a 472sq ft apartment for $1600m/o🙄
Imagine having parents whose house is worth millions of dollars 😂
Incredible journey and bold move by Matt Scanlan! 🚀 Naadam's approach not only disrupts traditional supply chains but also highlights the power of ethical sourcing and direct partnerships. This is a testament to how transparency and innovation can transform an industry and drive substantial growth.
Thank you for this story 🎉
I love cashmere and have purchased naadam and it is really nice. I’m excited to see this and will continue to support them.
Not only do I aspire for this level of risk taking
Just the other day I was wondering why I haven’t seen their ad on my YT feed. And wondering if it is still in business
How have I never heard from them 😂
At $100 a sweater he's "only" sold 1 million sweaters. So overall low penetration. However, hopefully he'll get a boost of sales and awareness after this. Sounds like an attractive value proposition :)
Dawg a lot of people didn't know Kylie Jenner was a billionaire with Kylie Cosmetics till it was reported
There is a lot of niche things
@@kumar01234 That was verified as fake
Wow wow wow ! What a story - well done guys .
Wow. What a story. This is like a movie.
I just retired recently and i find this video very creative if i must say, these psychological concepts are useful for individuals attempting to avoid mistakes. This is why warren buffet talked about temperament being crucial to investing success.
Fantastic. But a lot has changed...
Mixed heritage. Grew up in south Asia, northern Europe and the mid-west of USA in the 70s.
Pitching business ideas in my early teens and 20s led to nowhere. Nobody could relate, the globalized view was absent and my ideas were typically dismissed as niches.
Great to see these guys connecting with people and making that niche work big.
Thanks for the update.
Yes, the crypto market is really taking off and Bitcoin is in good shape to start trading now🔉✅
Te/e gram
@Rolandostrategy THAT IS HIS USER NAME
please make sure you write the USER NAME complete and He's verified
Well...I will advise you should stop trading on your own if you keep losing and start trading with an expert because trading with an expert is the best strategy for newbie...😊
I remember seeing their commercials about how they were going to bring more money to the
herders, now its worth a lot🎉
Great video ❤
quick question does the name "cashmere" add a luxurious air to this wool and that being the reason why people buy it?
Refreshing to hear that luck comes into making something work and its not all just hard work and grind mindset that so many bs companies and founders come out with!
2.5 mil loan 😂 how relatable
Its a good business.
Wow, that’s amazing 🤩
I love their product, own alot of their things. Only thing is I wish their things were better/more designed. I understand their DTC/transparency sort of startup branding is along the lines of everlane so their actual design and fit is supposed to be more generic, but wish it felt more designer and less san fran startup line.
Matt's dedication to transparency and fair trade is truly admirable. 🤗🙌
ok, so i understand the shipping the wool to beijing, but why is the wool being shipped all the way to italy?? chinese people don't know how to dye wool? wouldn't that cut a lot of the costs out and become profit? someone help me out here
I love this show❤
Most shocking thing if find about this it that the company makes 100 million a year and yet I’ve never heard of them until this video…
Same origin story of nearly every rich business owner - rich parents worth millions
Lol they're comparing Ralph Lauren purple label to this. On what basis ? They're not same cashmere or method or production and perfection.
Agreed. But they seemed to have found themselves a niche market of consumers willing to pay only a certain amount for just decent cashmere. One can argue this is contributing to the fast fashion problem of desertification of the Mongolian land and contributing to more landfill overall. But unfortunately if it wasn’t Nadaam, it wouldn’t have been soon after another company who would’ve penetrated this market
Incredible
Wow, what a story!
Had $20 to start... Currently at $100.. In just 2 hours .. I like this strategy the most
It turns out that it sounds cool AND i will may be buy one x)
Step one, have parents that can give you a 2.5M collateral for a loan.
Crazy story 🤯
You should explain the process more like how did they move stuff from Mongolia to china? that's basically importing stuff to china, wont they need an bank account to do that ? and an import license in china.
Then to move the product from china to Europe would further require an import procedure in Europe and would require banks
please also explain the intricacies and small processes as well
A lot of commenters knocked on these guys for being able to obtain a $2.5mm loan, but what you pointed out is the actual hard work and skill in what they had to do to succeed. 👏
I started with nothing only a 2.5m loan using my parents house. If I can do it, anyone can.
Exactly 😂
It takes more than just $2.5 million to accomplish what they have. There are many stories of bankrupt multi-million dollar lottery winners. What they did took massive skills and hard work too. What they did was brought value to the market while helping the source suppliers. An amazing feat!
@@transphotography In 2022, Naadam brought in $100 million in total revenue selling a wide range of cashmere products, from its top-selling $98 sweater to sweatpants and tank tops. (The business declined to share its 2023 sales numbers before the close of its current fiscal year.)
Not that easy mate….
@@mdtoriqulislam9626 really? I'm shocked 😲
Lmfao rich getting richer is not really "making it."
You sound dumb I bet you would never have been able to build a business like that with the capital
i wish all entrepreneurs can take out a 2.5 million dollar loan
Fire
Is it actually good? I tried a couple of these indie brands and the quality sucked. I didn't try Naadam but they were all ~$100. The $200-400 ones from major brands were still way better.
Cucinelli did the same many years ago,but his cashemere is much more expensive
This is not mat This is Harvey from Suits
Cool
amazing story he take a huge risk and its pay off
By cutting out the middlemen didn’t he disrupt the whole ecosystem of Mongolia cashmere trade? People who depended on that income are now screwed. Just curious
My parent would sell me rather than their home
Cashmere producer gains low profit and scabs to their hands and these guys make millions, epic story
What's that red dot?
is that cashmere? 🤣🤣
Wow
The loan was about $750,000 dollars.
entrepreneurship in its finest
Какие тут заносы четкие) просто жесть))) обожаю этот сайтик!)
In 2022, Naadam brought in $100 million in total revenue selling a wide range of cashmere products, from its top-selling $98 sweater to sweatpants and tank tops. (The business declined to share its 2023 sales numbers before the close of its current fiscal year.) How long will they last?
Wish they had big and tall sizes
Nice collateral for that loan
You can also buy cashmere wool from Inner Mongolia,my hometown, China.
Why not make finished product in Mongolia?
Made in USA, maybe thats why
@@mikeymaster2494 made in china
You assume that Mongolia has a competitive advantage in making sweaters. Big assumption.
As long as they pay the Mongolians a fair wage, cool! But this market is going to eventually change. The prices will go up, granted not as high as $400.
The word cashmere comes from the state in a country that is currently rapidly developing and is extremely good at clothing. Only a matter of time.
Hi everyone, In order to maximize the growth of my $400k portfolio during the upcoming bull market, I am actively looking for new ways to invest and diversify it. Any suggestions?
I completely understand your concerns. Navigating the financial markets can be very challenging.
What I would suggest you do is seek the proper guidance of a professional advisor that can manage your portfolios the right way
You’re right Jean. I have been working with a seasoned professional advisor for the past eight months now, and it’s been a life glorious experience financially. Made over six figures this few months.
His full name is Kurt Bastian Vogel
He’s the licensed fiduciary I work with. Just look his names up on your search engines and you’ll get the necessary details you need to set up an appointment with him. Cheers!
Their knitwear is NOT made in Italy 🇮🇹 or Scotland 🏴 where the BEST KNITWEAR is actually made. It’s made in China 🇨🇳. BIG DIFFERENCE.
Also, PETA did an investigation in how their Cashmere is sourced and how the goats 🐐 are being brutalized. People should look into this. Nadaam has refused to publicly discuss this matter.
😞😣😔
Are the workers who make the sweaters ethnically paid?
Ethnically?
Please come to Perú, indigenous llama wool farmers are being exploited just in the same way
Wow. Some people have luck.Some of us have worked so hard all our lives, tried and tried and tried, but nothing has materialised.
It's not luck, it's wealth and connections. He took out a nearly 3 million dollar loan. Most people can't even get a 20k loan
@@jreamscape Yes he has family and connections, but there are some people who started with nothing and succeeded. Success depends on more than just hard work and determination. Luck is also a factor
Cudos to them for taking a SMALL LOAN of $2.5 Million dollars (yes 2.5 Million is small) and building a $100 MILLION DOLLAR business. R&D alone could cost more than a HALF of the LOAN. If it all FAILS your left with the BURDEN of paying back the LOAN. But it seems like they had a great BUSINESS PLAN and EXECUTED it ACCORDINGLY. But what do I know I DON'T own a SUCCESSFUL CLOTHING BUSINESS.
If they start selling bedding they will probably make more money.
Globalization is the Merging of Economies...
But in order to get that done you need to get to know one an other better.
Any of us are capable to do this - let’s start with US$2.5M loan…
It takes money to make money perfect example here 😂
sounds like someone with rich parents to me collateralized 2.5 million in debt with his parents house...
Sorry, but 20% profit margin doesn't make sense, either. Curious to see where this company is 5 years from now to prove me wrong.