Ben Munoz had a bright path ahead of him before he dropped out of medical school to live in a warehouse.
With a BA in economics from Stanford, an MBA from Northwestern and a background in software development, it wouldn’t be a stretch to picture him running a hospital someday.
Instead, his friend Sidney pitched him an idea for capturing a slice of the $35 billion online women's shopping industry.
“I know Sidney’s tenacious and incredibly smart,” Munoz said. “It was a no-brainer.”
That’s how the two men founded
, a direct-to-consumer fashion retailer that aims to expand the subscription model of popular competitors like StitchFix, only with more inclusive pricing — and sizing.Nadine West (named after and inspired by Sidney's wife Nadine) ships customers distinctive pink packages of clothing and accessories chosen based on their responses to a survey taken at signup. Customers pay for only what they keep and send back the rest.
The company keeps prices low with the direct-to-consumer model, reducing markups by avoiding costs such as real estate and transportation.
The company also has an investor with 20 years of experience and relationships in the apparel industry, which Munoz and Williams have leveraged to source clothing from manufacturers in the U.S. and abroad at the lowest possible prices.
But even without the buddy discounts, the founders (pictured above) are decidedly frugal — which is how Munoz came to live in a warehouse for six months.
“We didn’t waste a single penny,” he said. “I did it so everything could go toward inventory, shipping and postage. The focus on efficiency, great customer service, and affordable prices is also a tried-and- true Texas business strategy. It’s exactly how Dell and Southwest Airlines came to dominate their industries.”
Munoz is fond of comparing Nadine West to these two Texas companies, ones who built successful brands on direct-to-consumer service and savings.
But even following those models, funding hasn’t come fast for the startup.
Munoz said the greatest challenge in launching was raising $120,000 in seed money from family and friends. Now he and Williams are seeking the right investors for an additional $250,000 to invest in additional inventory.
“Raising money in Austin is tough,” Munoz said. “Way tougher than in Silicon Valley and NYC. But we are so thankful to be in Austin now because the lack of money forced us to be hyper-efficient in every aspect of the company.”
By the looks of things, it’s paying off. When Nadine West incorporated in the fall of 2014, it was shipping 300 outfits to customers every month. This month, it’s on track to ship 5,000, with that rate projected to hit 20,000 by the end of the year and profitability only months away.
The company is currently looking for candidates in Austin to boost its operations team in that warehouse office Munoz used to call home and complement 20 existing employees stationed around the world.
They’re also looking for investors, but selectively. Munoz explained his company isn’t a good fit for someone asking about an exit three years down the road.
Evidently, the patience and perseverance is paying off.
“Don’t let the lack of money stop you from getting started,” Munoz said when prompted for advice he’d offer other founders. “Starting something despite the lack of resources is the entrepreneur’s job. Once you prove that you’re making something that people care about, money and people will follow.”
