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Jay Reno of Feather, a Furniture Subscription Startup
25 segments available
Jay Reno is the CEO and founder of Feather. Feather is a furniture subscription service. They were in the Summer 2017 batch of YC. https://twitter.com/jayjreno You can check out their furniture at LiveFeather.com and if you live in LA, SF, or New York you can try out the service. https://www.livefeather.com/ The YC podcast is hosted by Craig Cannon. https://www.livefeather.com/ Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year. Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/ *** Topics 00:00 - Intro 00:20 - Opting out of owning furniture 6:00 - Feather's prototype 8:50 - How much did he make from his MVP? 9:30 - How many products did they have? 11:45 - Legacy competitors 13:35 - Changing branding from RentFeather.com to LiveFeather.com 15:30 - Customer interviews and learnings 18:00 - Scaling a company with physical products 21:00 - Why expand to other markets vs focus on one? 23:30 - Who to hire and when in a logistics-heavy business 25:40 - Unexpected learnings from scaling Feather 27:25 - Feeling his role change over time 29:15 - Counterintuitive advice 34:50 - Advice for YC founders after Demo Day
Segments Timeline
The Rise of Subscription Furniture
Jay Reno introduces Feather, a furniture subscription service, highlighting the cultural shift away from ownership. He discusses how modern consumers prefer flexibility and convenience over traditional ownership, setting the stage for Feather's mission to address furniture waste and changing lifestyles.
"Jay Reno welcome to the podcast thank you for having me so you are the founder and CEO of feather which was in the summer 17 batch and feather is a furniture subscription service so at the core of it ..."
Understanding the Need for Change
Jay shares his personal experiences of moving frequently in New York City and how it shaped his understanding of furniture needs. He emphasizes the pain of moving and the environmental impact of furniture waste, leading to the realization that many people prefer not to own furniture due to changing life situations.
"level I think I saw three things happening in my life the first was I had moved seven times in the nine years I've lived in New York City and that's just above average actually that's okay not too far..."
Cultural Shifts in Ownership
Jay discusses the generational shift in values regarding ownership, contrasting his generation's desire for freedom and flexibility with the previous generation's focus on home ownership and material possessions. He explores how economic factors and changing aspirations influence consumer behavior.
"problems the third piece that's kind of interesting is there's a cultural shift happening like you mentioned the way from ownership of stuff mhm and high level where you see that going is and when you..."
The Prototype of Feather
Jay explains the initial concept of Feather as a rental business, focusing on the problem of ownership and waste. He describes how he created a minimum viable product (MVP) to test the market's interest in furniture subscriptions, emphasizing the need for flexibility and convenience.
"anything like that so that's certainly a an issue we consider that accessibility so feather does give people access to items that they may not otherwise would have purchased instead would have maybe p..."
Building the MVP
Jay details the process of developing Feather's MVP, including the use of Shopify and collaboration with an engineer. He shares insights on how he tested the concept with friends and the initial orders that validated the idea, highlighting the importance of market feedback.
"for feather did you just like sell to your friends like how did you ultimately figure out that this was the product yeah you know we started as a rental business okay so the prototype was hey ownershi..."
Early Sales and Product Range
Jay reflects on the early sales from his MVP, noting the significance of orders from friends and their connections. He discusses the importance of having a diverse product range to accurately test consumer interest and the logistics of fulfilling orders without upfront inventory.
"out a blast to friends on Facebook to see if anyone gave a and it turns out some people did and the first two orders were friends the third order was a friend of a friend okay the fourth order was a f..."
Feedback from the Industry
Jay emphasizes the importance of gathering feedback not only from consumers but also from industry professionals. He acknowledges that furniture rental is not a new concept and expresses the need to understand the market dynamics and historical context of the industry.
"paying myself so there was no delivery expense or assembly expense but I went and had one other person go with me who I'd usually find on TaskRabbit who would have the truck yes I also didn't have the..."
Identifying Market Opportunities
Reno discusses how Feather identified a significant market opportunity by focusing on consumers who desire flexibility in furniture ownership. He contrasts subscription models with traditional rental and ownership, highlighting the evolving needs of modern consumers.
"that exist yeah I've been around for 40 years like court for example they're in all 50 states you can get furniture rented and delivered to your home one the furniture is not for our demographic for p..."
Rebranding to LiveFeather
Jay Reno explains the strategic shift from RentFeather.com to LiveFeather.com, detailing how this rebranding reflects the company's evolution from a rental service to a subscription model. He discusses the implications of this change on customer perception and business growth.
"opportunity which are people who are currently buying furniture thinking they want to buy furniture but in fact what they actually want is the flexibility to be able to subscribe to furniture mm-hmm a..."
The Flexibility of Subscription
Reno elaborates on the benefits of Feather's subscription model, which allows customers to defer ownership decisions. He emphasizes the importance of flexibility in today's fast-paced lifestyle, where consumers may frequently relocate or change their living situations.
"ownership today because you don't know what's gonna happen in your constantly changing life you know you just moved to New York yep you are in a relationship yep anything could happen I mean I am NOT ..."
Customer Insights Through Deliveries
Jay Reno shares how direct interactions with customers during furniture deliveries provided valuable insights into their preferences and living situations. He stresses the importance of understanding customer needs beyond traditional user interviews.
"return it at any point so if the evolution of the company went from rental definitely don't own it's wrong to own too hey why don't you want to just make the choice later and so we evolved the the way..."
Furniture as Self-Expression
Reno discusses the misconception that furniture is a primary expression of self. He explains how most consumers prioritize comfort and compatibility with existing decor over unique styles, revealing insights into consumer behavior in the furniture market.
"yeah cuz I always figured it was them I mean because I met you right before you did your interview right and I always figured that furniture was an expression of self and it doesn't seem to be for a l..."
Scaling with Physical Products
Jay Reno outlines the challenges of scaling a business that delivers physical products. He emphasizes the need to respect logistics and operational complexities, which are often overlooked by rapidly growing startups.
"personality yeah so some people like you know modern and some people like mid-century modern and they're quite different in aesthetic and it says a little bit about a person but aside from that you do..."
The Role of Software in Logistics
Reno highlights the critical role of software in managing logistics for Feather. He explains how their proprietary systems have evolved to optimize delivery processes and inventory management, addressing the complexities of a furniture subscription service.
"something I want to talk about - so you're in multiple markets and you're also dealing with physical products what is it would have been the key takeaways scaling something where you're delivering rea..."
Building a Custom Backend
Jay Reno discusses the necessity of developing a custom backend for Feather's operations, as off-the-shelf solutions were inadequate. He explains how this investment in technology supports their unique business model and operational needs.
"backend in the software that we've created over the last few years allows us to effectively deliver furniture to people's homes you know I think from the outside you can look at a company like in sayi..."
Market Expansion Strategy
Reno addresses the decision to expand Feather into multiple markets rather than focusing solely on New York. He shares insights into the strategic considerations behind this approach and the potential benefits of a broader market presence.
"almost all yes okay now how many markets are you in we're in three okay so new york SF and LA no okay why not just dominating New York first good question"
Building a Market Playbook
In this segment, Jay Reno discusses the development of a market playbook for Feather as they expand. He reflects on the lessons learned from launching in new markets and the importance of having a structured approach to scaling operations. Reno emphasizes the need for a well-tested strategy to ensure successful growth in logistics-heavy businesses.
"for us so yeah so just try well because like with an Operations heavy business I think you could make an argument for the other side quite easily right like we scale too fast we want to own the whole ..."
Hiring for Operations Success
Reno provides insights on hiring strategies for operations-heavy businesses. He discusses the importance of understanding personal strengths and weaknesses when building a team. This segment highlights how Reno's early hires complemented his skills and contributed to Feather's growth, showcasing the significance of strategic hiring in startup success.
"and so now that we're in three markets launch we launched LA back in May um it we have we have a very healthy playbook for growth okay so now you've raised a bunch of money you've scaled so companying..."
Navigating the Role of a Founder
Jay Reno reflects on the evolving role of a founder as a company scales. He shares his experiences of transitioning from hands-on operations to managing a larger team. This segment captures the challenges and learning curves associated with leadership in a growing startup, emphasizing the need for adaptability and continuous learning.
"happen yeah totally so what else has been I don't know how else but it like unexpected as you've scaled this company like you said you really like product yet now you're managing all these people yeah..."
The Shift from Grit to Process
In this segment, Reno discusses the transition from the initial hustle of startup life to implementing structured processes as Feather scales. He highlights the importance of balancing heart and grit with systematic improvements in leadership and operations. This shift is crucial for maintaining efficiency and addressing the growing complexities of the business.
"because you just have an infinite okay and a finite number of hours in the day but how is that it I guess one of the most curious about is like how does that make you feel as a founder you know who's ..."
Seeding Opportunities for Growth
Reno shares counterintuitive advice on focusing while also seeding multiple opportunities for growth. He recounts his experience of cold emailing industry leaders, which led to valuable partnerships and insights. This segment emphasizes the importance of networking and exploring various avenues to foster business development in the early stages.
"done no it has to be functional and worked well yeah interesting ok so in terms of scaling the company management wise has any advice or any learnings you've picked up along the way I've been complete..."
High-Risk, High-Reward Strategy
Reno elaborates on the importance of planting high-risk seeds for potential high-reward outcomes. He stresses that while not every effort will yield results, the right approach can lead to significant opportunities and growth for a startup.
"could exist should exist and I really want to pursue this so I went online and I looked at applications to various startup accelerators and the first one I went to was Y Combinator and as it turns out..."
Understanding Market Complexity
Jay discusses the complexities of Feather's business model and why he never felt threatened by larger competitors. He explains how the unique combination of software, delivery, and logistics creates barriers to entry that protect Feather from being easily replicated.
"well I think what's cool about feather is like it's basically the product you imagined in the beginning is basically this is it yeah yeah with tweaks along the way yeah getting to know people understa..."
Preparing for Post-Demo Day
As Feather approaches Demo Day, Jay offers advice to founders on maintaining momentum after the event. He emphasizes the importance of setting weekly goals to ensure continued growth and adapting strategies to navigate the transition from the supportive environment of Y Combinator.
"at all okay no I mean understanding the level of complexity of our business yeah and how different it is from everything that exists in the market your software needs the delivery and last-mile logist..."
Navigating the Startup Transition
Reno reflects on the emotional transition after Y Combinator, likening it to coming down from a high. He advises founders to take time to reset and strategize for the future, highlighting the importance of maintaining focus and energy in the early stages post-funding.
"tough transition to go from this like really cool group dynamic tons of pressure like with your peers a clear goal in sight they're gonna raise money most of them what is your advice to the founders w..."