Xero Shoes: Steven Sashen and Lena Phoenix

Initial Success

Steven Sashen's unexpected discovery of a business opportunity began with a barefoot 5K run, leading to the creation of Xero Shoes. Initially, his wife, Lena Phoenix, was skeptical about turning his sandal-making hobby into a business, but Steven's determination led him to build a website overnight, launching their DIY sandal kits 1. The couple's efforts quickly paid off, as they sold nearly 6,000 kits in their first year, generating $114,000 in revenue 2. This success was fueled by the growing interest in minimalist footwear, which Steven and Lena capitalized on by creating engaging online content that ranked highly in search results 3.

We made our first sales in November to a guy in Minnesota for a sandal kit.

--- Lena Phoenix

Their innovative approach and early success laid the foundation for what would become a thriving business.

   

Manufacturing Challenges

As Xero Shoes grew, Steven and Lena faced significant manufacturing challenges, including legal issues and quality control problems. They discovered that their initial factory in China had patented their sandal design, but managed to reclaim it due to prior public exposure 4. The couple also encountered quality inconsistencies with their Korean manufacturer, leading to a costly setback when many outsoles were found to be too flimsy 5. Despite these hurdles, they persevered by finding new manufacturing partners, eventually connecting with a group in New York that helped them secure a reliable Chinese manufacturer 6.

We learned, you know, it's very difficult to become a new manufacturing client because the factory is losing money on you.

--- Lena Phoenix

These experiences taught them valuable lessons about the complexities of international manufacturing and the importance of quality control.

   

Shark Tank Impact

In 2012, Steven and Lena's appearance on Shark Tank marked a pivotal moment for Xero Shoes, despite not securing a favorable deal. The exposure from the show significantly boosted their brand's visibility, leading to a surge in website traffic and sales 7. Although the sharks were not particularly generous, with Kevin O'Leary offering $400,000 for 50% of the company, the couple turned down the offer, valuing their business at $5 million 7. The experience was surreal, but ultimately beneficial, as they achieved 10% of their lifetime sales volume in just one week following the broadcast.

We had 270,000 visitors at one time for about twelve minutes.

--- Lena Phoenix

This exposure helped solidify Xero Shoes' reputation and expand their customer base significantly.