We know how daunting it can be to start a new business, especially if you’re disrupting an industry or creating an entirely new one. When there is no path to follow, the biggest question is, where do I start? There is so much to do but before you get ahead of yourself, let’s start at the beginning. To kick start the process, and ease some of those first-time founder nerves, we’re asking successful entrepreneurs to share their story in our new series, From Scratch. But this isn’t your typical day in the life. We’re getting down to the nitty-gritty from writing a business plan (or not) to sourcing manufacturers and how much they pay themselves, we’re not holding back.
Photo: Courtesy of @Dazey_LA
Searching for your dream job is no walk in the park. Sometimes, you can search and search and not find what you were looking for. Or maybe you do land that job you always dreamed of, and it turns out to be something entirely different. That’s why the founder of Dazey LA, Danielle Nagel, thinks “your dream job simply doesn’t exist—you have to create it.” And we are totally on board with that.
Dazey LA is equal parts fashion and feminism all wrapped up into a beautiful small business that consists of graphic tees designed by Danielle herself (and so much more). We love the work and stance on social topics Danielle has made, so much so that we asked her to design our team t-shirts for the San Francisco conference along with the Self Care Summit jumpsuits and murals! Take a read below to see how this go-getter and small business owner got her start in the dream job world—you’ll leave this page just as inspired as we did.
Photo: Courtsey of @DazeyLA
Create & Cultivate: Did you write a business plan?
Danielle Nagel: “I did not! I’m more of a fly-by-the-seat-of-my-pants kind of gal. I didn’t have many expectations, but I did have a lot of big dreams. I was sure to build up my freelance client list before quitting my secure job to start Dazey. I figured I could count on that if the company took a while to turn a profit. I had a lot of ideas but didn’t write down a solid plan. I also knew things always end differently than you imagined (and boy did they!). Plans and ideas are constantly changing and I like holding them loosely and rolling with the punches.”
C&C: How did you come up with the name? What did you consider during that process?
DN: “I love branding and coming up with names. Beyond Dazey LA, I have helped name and brand quite a few of my client’s and friend’s companies. For me, it’s all about creating something unique and unexpected. I like to make up new words if possible—while still being familiar and easy to remember. Plus, that way you’re way more likely to get all the right domains and handles.
“I had originally come up with the name Lovelle, which was a hybrid of my name Danielle and Love. Now I totally hate it. I ordered a bunch of labels and branding assets, only to decide I didn’t like it after all. Then my sister and I were texting back and forth to try and find something new. We started throwing out words we liked ‘golden’, daisy’, ‘days’, ‘daze’, and then one of us (still up for debate) just said what about ‘Dazey’!? We liked it and it just stuck. I also like that with the unique spelling, it can take on a meaning of its own.”
C&C: What were the immediate things you had to take care of to set up the business?
DN: “I immediately set up trademarks and make sure I snagged all the domains and usernames—as a product-based business, that is first and foremost! I had been a full-time t-shirt designer for about six years before launching my brand and had designed a lot of meaningless graphics for corporate companies like Urban Outfitters and Macy’s. I knew when I launched my own brand I wanted to design shirts that stood for something, with designs I was really proud of—I wanted them to be my very best. I spent some time perfecting the collection and worked on finding ways to source the best blanks to print them on. Once I finally had my first little collection, I planned a shoot, threw it on the site, and then hit live.”
C&C: What research did you do for the brand beforehand? Why would you recommend it?
DN: “Having worked in the industry for many years before launching Dazey gave me perspective. I was a bit of a millennial job-hopper, so I got to experience many different workplaces. I was extremely curious about how each company worked and did all I could to figure out the mechanics. My last job before Dazey was with a start-up, Revice Denim. I was basically employee #1 and did everything from naming the brand, designing the clothing to art directing, shooting, styling, social media, and web design.
“Before that, I was just a cog in the corporate wheel, so it was the first time I had the chance to explore my creativity beyond apparel graphics (and I loved it). Working for a startup was an incredible way to research and learn about building a company from the ground up. That’s what gave me the courage to start Dazey.”
C&C: How did you find the manufacturer/production facility that you use? What advice do you have for other founders looking for a trustworthy manufacturer?
DN: “I didn’t find my current production partner until I was six months in. I was basically working with whatever I could find on Google, and it was really limiting my creativity. I went to MAGIC, the big fashion tradeshow in Vegas, hoping to get some freelance clients and bump some shoulders. I ended up being introduced to my production partner, Kelly, through one of my freelance clients. We immediately hit it off and realized we had so much in common.
“We both wanted to make beautiful and creative clothing while doing so as sustainably. We came up with and perfected our made-to-order, no waste model over the past three years. He has helped me go from ‘just a t-shirt brand’ into a full-on clothing line with things like suits, dresses, and even patterned fanny packs. I would say putting yourself out there is key. Go to sourcing shows, networking events, introduce yourself to people, ask questions, send cold emails, let the world know what you’re looking for and go find it.”
“Go to sourcing shows, networking events, introduce yourself to people, ask questions, send cold emails, let the world know what you’re looking for and go find it.”
C&C: Did you self-fund the company?
DN: “Dazey is fully self-funded. I was very careful to save a ton before starting Dazey so I wouldn’t be stressed or chicken out. I had saved enough to launch the brand that I could comfortably live off for a year. It has given me the flexibility to harness my creativity and grow at a pace that felt comfortable to me as a brand new founder and businesswoman. I know all the money I make is mine and I get to make the final call on everything. I think it was the right call for me starting out and we’ve been able to grow a lot from my initial $4,000 personal investment. I don’t know what the future holds, but I may be open to the idea of investment to really help scale in the near future.”
C&C: How did you know how to pay yourself?
DN: “Well, I made the mistake of starting off my business as a sole proprietorship. Which means everything from the business was through my personal bank account. Every expense and every payout. Now I’ve learned that’s not a good practice if you’re really trying to grow a company outside of just freelance work! You really need to keep them separate. Since then, I’ve of course established a C-corp and company account.”
“My personal pay always varies depending on how the company is doing. When things are good, I allow myself to experience the benefits. When they are slow, I pull back. Last year we had an amazing year and I paid myself more than I had ever dreamed of making with my corporate jobs. This year, we’ve had a slower summer. I’ve decided to keep all of the money in the business account and live off of my savings and rental property income for awhile. A lot of founders don’t let themselves enjoy the successes and I think that can be a quick route to burnout. I like going with the flow and staying in-tune with my company.”
C&C: How big is your team now? What has the hiring process been like?
DN: “We have five people in our immediate team now. I had never hired anyone before and remember being so excited to give the first interview. We’ve gotten so lucky with our team and everyone I’ve hired since year one is still here today. Myself as the owner and CEO, Phillip our COO (who is also my amazing boyfriend), Megan who manages our Dazey Lady Shop, Naomi who helps me with content and creative, and our newest Lisa who is doing customer service and shipments. When it came to interviewing, I trusted my gut feeling. I didn’t get too hung up on resumes because I know people can easily learn on the job, just like I had.
“It was more about the conversation and connection I had with them. Things like if I could trust them, get along with them, that they cared about the company, and I think they are a hard worker. So far, it hasn’t steered me wrong. Of course, we have so many other people that are basically apart of the Dazey family, like our production team and sales showroom reps. It really takes a village, even as a super small company.”
“I had saved enough to launch the brand that I could comfortably live off for a year. It has given me the flexibility to harness my creativity and grow at a pace that felt comfortable to me as a brand new founder and businesswoman.”
C&C: Did you hire an accountant? Who helped you with the financial decisions and set up?
DN: “Yes, and I wish I would have sooner. She had to go back pretty far to correct all the unbeknownst co-mingling I did (using both my personal and business account instead of keeping them totally separate). That was totally a waste of time when I could have been working with her all along and without stress. Especially as a business begins to grow, the finances can quickly become hard to track. It’s best to start off with the right person in place so they can grow with you and make sure your books are done right. Accounting is not my forte, so why not focus on what I’m good at—making the money—and then let the professionals handle it.”
C&C: What has been the biggest learning curve during the process of establishing a business?
DN: “As somebody who has always considered themselves good with money, I’ve discovered it’s been a whole different beast as a business. You really have to stay on top of where effort and money are being spent and if the direct return merits that amount. When you start to deal with so many big numbers going in and out quickly, things can get confusing.
“Be sure to stay on track of your finances and know what number you really have in the bank (with expected income and expenses). Make decisions carefully and constantly re-evaluate spending/saving. You really do have to spend money to make money, but make sure you are smart and strategic about it.”
C&C: How did you get retailers to start stocking your product?
DN: “When I first launched Dazey, my focus was on direct to consumer selling and marketing on Instagram. I didn’t think wholesale was important at the time. I wanted to keep my production ethical but also keep my prices reasonable, which made my wholesale margins pretty dismal. I would take wholesale orders here and there if people reached out, but it wasn’t my focus. Fast forward about four years later and it has shifted to be a pretty big chunk of our business. Instagram was everything we needed to start building an engaged and supportive community. Direct website sales were growing like crazy and we thought we had it made in the shade. Then came the dreaded algorithm.
“Additionally, I will say there has been a shift in consumer behavior as more people begin to experience social-media fatigue and distrust. All that dramatically affected our online sales. We pumped up our online ad spend, but it didn’t really help either. I talked to some other entrepreneurs and they all reported the same. Semi-freaking out, I sat down with my production partner to plan our next move. He suggested we give wholesale a proper try. As an industry veteran who had spent most of his career in B2B (business to business as opposed to direct), he thought it could really help us. We had to restructure our pricing to make our margins more fair for us, and then we found a wholesale showroom.
“I walked into the Cooper fashion building in DTLA and grabbed a directory and started sending out cold emails based on the brands the showrooms already carried. We got four meetings, sat down with all of them, and found the right fit—a smaller showroom with a focus on made in USA products. It’s been a game-changer. Dazey now does amazing with wholesale and sells out of boutiques faster than they can reorder. The fact that we built a large social media following and people knew our name has made it easier than starting out with wholesale. We are now even carried by Free People who happened to just find us on Instagram.”
“Be sure to stay on track of your finances and know what number you really have in the bank (with expected income and expenses). Make decisions carefully and constantly re-evaluate spending/saving. ”
C&C: Do you have a business coach or mentor? Would you recommend one?
DN: “Kelly my production partner has been a huge mentor for me. He saw potential when Dazey was nothing and took a bet on me with blind faith. I would also say my community of fellow female entrepreneurs has been one of the biggest driving forces in both mentorship and inspiration. Peer to peer mentoring is amazing because we are all learning and growing together. Outside of Dazey, I co-founded a boutique female co-working space called Biz Babez has been a great connector and space to learn from one another.”
C&C: How did you promote your company? Did you know anything about marketing before this venture?
DN: “I had started fashion blogging in college before Instagram had even existed. I was connected with a bunch of girls via a website called lookbook.nu and when I moved to L.A., we would help each other snap photos of outfits to share on our blogs. I quit blogging when my full-time job got to be too much (this was before you could make money off of it). But many of the girls I knew kept at it and ended up becoming huge successes in the fashion blogging space.
“When I started Dazey, a lot of them were so helpful in shooting content with me and promoting. I would take all the photos myself and also snap pics of whatever they wanted in exchange. This was a great way to get the word out at the very beginning. Then once I built a following myself, I just chose to be very personal and real with my community like sharing the BTS of running a small biz. I would share my design process, my production, and really all the highs and lows of running a business. That’s when things really started to take off from word of mouth.”
“As a hyper-creative person who’s not necessarily the best at all that, I’ve also learned to lean on other people. Know what you are good at and focus on that.”
C&C: What is one thing you didn’t do in the setup process, that ended up being crucial to the business and would advise others to do asap?
DN: “Get everything in order—your bank accounts, contracts, your LLC or CORP. Read a business book and get to know the less glamorous side of small biz. As a hyper-creative person who’s not necessarily the best at all that, I’ve also learned to lean on other people. Know what you are good at and focus on that. Then hire help for the rest. Your efforts will be best spent doing what you love and what you’re good at.”
C&C: For those who haven’t started a business (or are about to) what advice do you have?
DN: “Do the damn dream. That’s printed on a Dazey tee. But honestly, the only regret I have with starting Dazey is not doing it sooner. It’s a rollercoaster but so worth it. Your dream job simply doesn’t exist—you have to create it.
“So many times I thought I knew what my ‘dream job’ was until I actually got it and realized that wasn’t the case at all. With Dazey, I’ve been able to combine all of my passions into one thing. From fashion, art, design, photography to social media, feminism, and sustainability (and even somehow interior design now). I designed Dazey to be true to everything I love and believe in. And my customers can see and feel that. If you build a business that you are undeniably passionate about, it’s damn near impossible for it to fail at it.”
