694: We Were Two Weeks From Shutting Down - Then We Found Our $30M Product

Description

Chris and Jake Yap were two weeks from shutting down. A billion-dollar retailer had copied every product they launched and sold them for one tenth the price, then put it in the news - buy this coffee table from us for $499, or from them for $49. They'd burned their business savings, their personal savings, and taken out personal guarantee loans chasing speed. Jake was telling his wife he wasn't sure he could make rent. Then in those two weeks they made one switch that changed everything: instead of testing designs, they started testing problems. Little Lively launched last October, grew 30% compounding month on month, went worldwide in the same month it launched, and now spends around $600,000 a month on Meta. In this interview, Chris and Jake break down the exact testing framework that found their winning product, why they killed 700 SKUs to bet everything on one, and how they built an internal AI agent that runs across their entire company. What you'll learn in this interview: • The switch from testing designs to testing problems - and why it saved the business in two weeks • How they turned $10 wireless chargers off Alibaba into $300K cash in their first year • The Abundance Framework: testing up to 1,000 designs a week before ever committing to production • Why fast-fashion-style furniture drops became a vicious discount cycle that nearly killed them • How suppliers with 60-day payment terms effectively became their investors - and the relationship approach behind it • The 60 ROAS launch: what happens when you actually solve a real problem • Why they now welcome copycats - and how being 4-5 years ahead on the roadmap makes competitors into free marketing • Why they launched worldwide in the same month instead of proving one market first • "Australia is small and hard, the US is big and easy" - the contrarian take on market selection • Caesar: the company-wide AI agent living in their Slack that their team used to build an entire ERP system from scratch If you're running a DTC brand, drowning in SKUs and disco