"Sophia Amoruso learned the hard way that founders who tap venture capital and chase ever-higher valuations can get into trouble. She shared five lessons from the rise and fall of her company, Nasty Gal, on the latest episode of "The Burnouts" podcast. Amoruso started selling vintage clothing from her bedroom and built the business into a fast-fashion retailer with over $100 million in annual revenue and more than 200 employees at its mid-2010s peak. Her autobiography, "#GIRLBOSS," was adapted into a Netflix series."
"Recalling her mistakes as a boss, Amoruso said she didn't coach or direct her workers enough and "could have given people more chances." She added that she had fired people before finding replacements. "I just kind of whacked people, and it puts a business at a risk when you just remove someone from the company," she told the podcast. When a worker is abruptly removed, she said, "The people under them are like, 'I got all this responsibility, what the hell?'""
Sophia Amoruso built Nasty Gal from selling vintage clothing into a fast-fashion retailer that reached over $100 million in annual revenue, more than 200 employees, and a $350 million valuation before collapsing. Nasty Gal encountered financial and legal troubles, filed for bankruptcy in 2016, and was acquired by Boohoo in 2017. Amoruso later started a VC firm in 2023. Key lessons include not firing employees hastily, providing coaching and direction, avoiding the pitfalls of chasing venture capital and ever-higher valuations, gaining work experience before founding, and staying open to acquisition as an exit strategy.
Read at Business Insider
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