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Jun 17, 2016 · 23m · top-founders

MIT Grad Reinventing Clothes with $7,000,000 Raised and $500k on Kickstarter, EP 295: Aman Advani

Nathan Latka · 10m spoken Aman Advani · 10m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Host Nathan Latka interviews Ministry of Supply co-founder and CEO Aman Advani to analyze how the MIT-born performance apparel startup scaled past 100,000 units shipped, raised $7 million in capital, and built a sustainable direct-to-consumer business model.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 51.3% of the talking time here. How this is scored →

Nathan as informed peer 3.3 Guest teaching 2.3 Guest disagreement 2.3 Nathan pushing back 3.6
05100:0010:0020:001:13–4:04 · Nathan as informed peer 3/10 Introducing Aman Advani and Ministry of Supply Nathan introduces Aman and inquires into Ministry of Supply's Kickstarter origins and early unit economics. Aman readily admits early mistakes regarding cost of goods and shipping margins.4:04–8:09 · Nathan as informed peer 5/10 Customer Repeat Rates and Company Headcount Metrics Nathan repeatedly presses Aman to disclose 2015 revenue, calling him out for framing growth ambiguously and directly asking what he is afraid of when dodging specific figures.8:09–10:52 · Nathan as informed peer 5/10 Direct-to-Consumer Strategy and Customer Base Volume Nathan lectures on vanity metrics and startups like Fab burning cash, while Aman stands his ground arguing that retention metrics and gross margins are truer indicators of health than top-line revenue.10:52–13:56 · Nathan as informed peer 4/10 Gross Margins, Textile R&D, and Retail Strategy Aman explains typical apparel gross margins and Ministry of Supply's DTC structure, while Nathan probes into balance sheet assets and capital allocation between supply and demand.13:56–17:02 · Nathan as informed peer 4/10 Robotic Knitting, 3D Garments, and Minimum Wage Impact Nathan questions Aman on robotic knitting automation and the impact of a $15 minimum wage, prompting Aman to articulate how automation reallocates human labor rather than replaces it.17:02–19:23 · Nathan as informed peer 0/10 Mid-Roll Sponsor Announcements: FreshBooks and HostGator Mid-roll host monologue and sponsor advertisements for FreshBooks and HostGator.19:23–21:27 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions with Aman Advani Nathan guides Aman through the standard Famous Five rapid-fire questions covering mentors, tools, and reflections on founding.1:13–4:04 · Guest teaching 2/10 Introducing Aman Advani and Ministry of Supply Nathan introduces Aman and inquires into Ministry of Supply's Kickstarter origins and early unit economics. Aman readily admits early mistakes regarding cost of goods and shipping margins.4:04–8:09 · Guest teaching 2/10 Customer Repeat Rates and Company Headcount Metrics Nathan repeatedly presses Aman to disclose 2015 revenue, calling him out for framing growth ambiguously and directly asking what he is afraid of when dodging specific figures.8:09–10:52 · Guest teaching 4/10 Direct-to-Consumer Strategy and Customer Base Volume Nathan lectures on vanity metrics and startups like Fab burning cash, while Aman stands his ground arguing that retention metrics and gross margins are truer indicators of health than top-line revenue.10:52–13:56 · Guest teaching 3/10 Gross Margins, Textile R&D, and Retail Strategy Aman explains typical apparel gross margins and Ministry of Supply's DTC structure, while Nathan probes into balance sheet assets and capital allocation between supply and demand.13:56–17:02 · Guest teaching 4/10 Robotic Knitting, 3D Garments, and Minimum Wage Impact Nathan questions Aman on robotic knitting automation and the impact of a $15 minimum wage, prompting Aman to articulate how automation reallocates human labor rather than replaces it.17:02–19:23 · Guest teaching 0/10 Mid-Roll Sponsor Announcements: FreshBooks and HostGator Mid-roll host monologue and sponsor advertisements for FreshBooks and HostGator.19:23–21:27 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions with Aman Advani Nathan guides Aman through the standard Famous Five rapid-fire questions covering mentors, tools, and reflections on founding.1:13–4:04 · Guest disagreement 1/10 Introducing Aman Advani and Ministry of Supply Nathan introduces Aman and inquires into Ministry of Supply's Kickstarter origins and early unit economics. Aman readily admits early mistakes regarding cost of goods and shipping margins.4:04–8:09 · Guest disagreement 5/10 Customer Repeat Rates and Company Headcount Metrics Nathan repeatedly presses Aman to disclose 2015 revenue, calling him out for framing growth ambiguously and directly asking what he is afraid of when dodging specific figures.8:09–10:52 · Guest disagreement 6/10 Direct-to-Consumer Strategy and Customer Base Volume Nathan lectures on vanity metrics and startups like Fab burning cash, while Aman stands his ground arguing that retention metrics and gross margins are truer indicators of health than top-line revenue.10:52–13:56 · Guest disagreement 1/10 Gross Margins, Textile R&D, and Retail Strategy Aman explains typical apparel gross margins and Ministry of Supply's DTC structure, while Nathan probes into balance sheet assets and capital allocation between supply and demand.13:56–17:02 · Guest disagreement 2/10 Robotic Knitting, 3D Garments, and Minimum Wage Impact Nathan questions Aman on robotic knitting automation and the impact of a $15 minimum wage, prompting Aman to articulate how automation reallocates human labor rather than replaces it.17:02–19:23 · Guest disagreement 0/10 Mid-Roll Sponsor Announcements: FreshBooks and HostGator Mid-roll host monologue and sponsor advertisements for FreshBooks and HostGator.19:23–21:27 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions with Aman Advani Nathan guides Aman through the standard Famous Five rapid-fire questions covering mentors, tools, and reflections on founding.1:13–4:04 · Nathan pushing back 2/10 Introducing Aman Advani and Ministry of Supply Nathan introduces Aman and inquires into Ministry of Supply's Kickstarter origins and early unit economics. Aman readily admits early mistakes regarding cost of goods and shipping margins.4:04–8:09 · Nathan pushing back 8/10 Customer Repeat Rates and Company Headcount Metrics Nathan repeatedly presses Aman to disclose 2015 revenue, calling him out for framing growth ambiguously and directly asking what he is afraid of when dodging specific figures.8:09–10:52 · Nathan pushing back 7/10 Direct-to-Consumer Strategy and Customer Base Volume Nathan lectures on vanity metrics and startups like Fab burning cash, while Aman stands his ground arguing that retention metrics and gross margins are truer indicators of health than top-line revenue.10:52–13:56 · Nathan pushing back 3/10 Gross Margins, Textile R&D, and Retail Strategy Aman explains typical apparel gross margins and Ministry of Supply's DTC structure, while Nathan probes into balance sheet assets and capital allocation between supply and demand.13:56–17:02 · Nathan pushing back 4/10 Robotic Knitting, 3D Garments, and Minimum Wage Impact Nathan questions Aman on robotic knitting automation and the impact of a $15 minimum wage, prompting Aman to articulate how automation reallocates human labor rather than replaces it.17:02–19:23 · Nathan pushing back 0/10 Mid-Roll Sponsor Announcements: FreshBooks and HostGator Mid-roll host monologue and sponsor advertisements for FreshBooks and HostGator.19:23–21:27 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions with Aman Advani Nathan guides Aman through the standard Famous Five rapid-fire questions covering mentors, tools, and reflections on founding.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 69.5% · guest 30.5%0:00 · Nathan 69.5% · guest 30.5%3:00 · Nathan 23.6% · guest 76.4%3:00 · Nathan 23.6% · guest 76.4%6:00 · Nathan 46.5% · guest 53.5%6:00 · Nathan 46.5% · guest 53.5%9:00 · Nathan 49.1% · guest 50.9%9:00 · Nathan 49.1% · guest 50.9%12:00 · Nathan 19% · guest 81%12:00 · Nathan 19% · guest 81%15:00 · Nathan 54.5% · guest 45.5%15:00 · Nathan 54.5% · guest 45.5%18:00 · Nathan 70.8% · guest 29.2%18:00 · Nathan 70.8% · guest 29.2%21:00 · Nathan 89.2% · guest 10.8%21:00 · Nathan 89.2% · guest 10.8%
Sharpest disagreement ▶ 8:42 Aman rejecting top-line focus

Aman firmly pushes back against Nathan's insistence on top-line revenue, arguing that internal health metrics like repeat rates and margins matter far more than vanity growth figures.

 Hardest push from Nathan ▶ 7:17 Nathan challenging revenue evasion

Nathan refuses to let Aman dodge revenue questions, calculating estimated year-over-year figures himself and directly asking what Aman is scared of.

 Biggest teaching moment ▶ 11:17 Apparel industry margin dynamics

Aman educates Nathan on apparel gross margins, explaining how wholesale B2B dynamics differ from direct-to-consumer models where customer acquisition cost balances out higher margins.

 Nathan holds their own ▶ 8:06 Nathan invoking high-profile startup failures

Nathan brings up venture-backed failures like Fab to argue why obsessing over top-line growth and funding without disclosing revenue leads to capital destruction.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Aman Advani and Ministry of Supply 3212 Nathan introduces Aman and inquires into Ministry of Supply's Kickstarter origins and early unit economics. Aman readily admits early mistakes regarding cost of goods and shipping margins.
Customer Repeat Rates and Company Headcount Metrics 5258 Nathan repeatedly presses Aman to disclose 2015 revenue, calling him out for framing growth ambiguously and directly asking what he is afraid of when dodging specific figures.
Direct-to-Consumer Strategy and Customer Base Volume 5467 Nathan lectures on vanity metrics and startups like Fab burning cash, while Aman stands his ground arguing that retention metrics and gross margins are truer indicators of health than top-line revenue.
Gross Margins, Textile R&D, and Retail Strategy 4313 Aman explains typical apparel gross margins and Ministry of Supply's DTC structure, while Nathan probes into balance sheet assets and capital allocation between supply and demand.
Robotic Knitting, 3D Garments, and Minimum Wage Impact 4424 Nathan questions Aman on robotic knitting automation and the impact of a $15 minimum wage, prompting Aman to articulate how automation reallocates human labor rather than replaces it.
Mid-Roll Sponsor Announcements: FreshBooks and HostGator 0000 Mid-roll host monologue and sponsor advertisements for FreshBooks and HostGator.
The Famous Five Rapid-Fire Questions with Aman Advani 2111 Nathan guides Aman through the standard Famous Five rapid-fire questions covering mentors, tools, and reflections on founding.

Statements from this episode (13)

Assertion Supported
Advani: Ministry of Supply set a Kickstarter fashion record raising $429k
“429,000, I think in that month. And at the time that was kind of a behemoth on Kickstarter. I think Since that's been dwarfed a few times, but at the time, it was kind of the record holder for biggest fashion projects, and more than anything, just a validation…”
Aman Advani Jun 17, 2016 ▶ 2:55
Disclosure
Advani says Ministry of Supply lost money on its initial Kickstarter
“We didn't have a good grasp on kind of the at scale cost of goods. And on top of that, we didn't properly factor in packaging or returns or anything like that. So we joke in hindsight that we probably lost a decent amount of money on the whole thing where our …”
Aman Advani Jun 17, 2016 ▶ 3:42
Prediction Not checkable as stated
Advani: Ministry of Supply has doubled its business annually since launch
“The business has doubled year over year since that first year, that was and we, we've doubled the business year over year, and we'll continue to do that.”
Aman Advani Jun 17, 2016 ▶ 4:10
Assertion Not checkable as stated
Advani: Ministry of Supply has shipped over 100,000 units
“So, and we, we've shipped out over a 100,000 units.”
Aman Advani Jun 17, 2016 ▶ 4:19
Assertion Not checkable as stated
Advani: Ministry of Supply customers make their second purchase within 22 days
“Our second purchase typically happens about 22 days after the first.”
Aman Advani Jun 17, 2016 ▶ 5:10
Disclosure
Advani: Ministry of Supply has raised about $7 million in outside capital
“We've taken on about seven million outside financing and use that money very efficiently.”
Aman Advani Jun 17, 2016 ▶ 5:57
Prediction Not checkable as stated
Advani: Ministry of Supply will achieve profitability by late 2016 or early 2017
“We are approaching profitability much faster than I think a lot of our predecessors in the sense that ideally late this year, early next year, we'll cross that milestone.”
Aman Advani Jun 17, 2016 ▶ 6:57
Assertion Not checkable as stated
Advani: Ministry of Supply repeat rate has doubled since year one
“It's doubled from year one till present.”
Aman Advani Jun 17, 2016 ▶ 9:24
Assertion Not checkable as stated
Advani: Wholesale accounts for under 5% of Ministry of Supply sales
“Less than five percent of our business is a couple of key wholesale partners that we sell through that are great at telling our story.”
Aman Advani Jun 17, 2016 ▶ 10:15
Assertion Supported
Advani: D2C apparel commands higher gross margins within 30% to 60% range
“I'd say anywhere between 30 and 60% is a good guess. It depends on the model. So you'll, you'll tend to see lower numbers when you look at companies who have a bigger B to B business. Where they don't sell direct to the consumer versus companies who sell direc…”
Aman Advani Jun 17, 2016 ▶ 11:20
Disclosure
Advani: Ministry of Supply avoids heavy machinery assets on its balance sheet
“No, no, no. And we don't we tend to either lease machinery or buy small machinery and then also leverage centers like the sports tech Institute in the UK or to leverage other facilities that we can get our hands on.”
Aman Advani Jun 17, 2016 ▶ 12:31
Disclosure
Advani: Ministry of Supply targets 4 to 5 inventory turns per year
“So inventory turns a good rate for us would be somewhere in the four to five turns a year, right? So holding two to three months of inventory at a time.”
Aman Advani Jun 17, 2016 ▶ 16:21
Disclosure
Advani: Ministry of Supply holds $500k to $1M in inventory
“Candidly, just throwing numbers that we're holding, you know, at any given moment, somewhere between a half a million and a million bucks of inventory.”
Aman Advani Jun 17, 2016 ▶ 16:38
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