Kate Spade co-founder Andy Spade explains taking a high-paying advertising role in Los Angeles to self-fund the early handbag business.
Assertion Not checkable as stated
Kate and Andy Spade took no salary until year four
“Fourth year we paid ourselves 15,000 and we're still working out of our apartment.”
Assertion Not checkable as stated
Founders drained their savings and 401(k) to bootstrap Kate Spade
“We had run through our four or one K money. And, you know, all of our savings at that point, we still weren't seeing, you know, a progression that was going to pay us a salary in the next year, in the near future.”
Assertion Not checkable as stated
A 50-store department store rollout quadrupled Kate Spade's business
“Either Neiman's or Saks, they were buying for two or three stores, and they said, we're going to buy for all of our stores. And that was 50 stores, or more than 50 stores, and that quadrupled our business.”
Assertion Not checkable as stated
Kate and Andy Spade waited four years to take a $15,000 salary
“Fourth year we paid ourselves 15,000, and we were still working out of our apartment.”
Disclosure
Andy and Kate Spade depleted all 401(k) accounts to bootstrap their brand
“We had run through our four or one K money. And, you know, all of our savings at that point, we still weren't seeing, you know, a progression that was going to pay us a salary in the next year, in the near future.”
Assertion Not checkable as stated
Department store expansion to 50 locations quadrupled Kate Spade's business overnight
“Either Neiman's or Saks, they were buying for two or three stores, and they said, we're going to buy for all of our stores. And that was 50 stores, or more than 50 stores, and that quadrupled our business.”