How Kendra Scott used 3 simple elements to turn her jewelry startup into a $1 billion company

Kendra Scott built her jewelry startup into a $1 billion company by focusing on three core elements: wholesale, specialty retail, and e-commerce. Scott explained during the Inc. Small Business Week Series that wholesale was critical in her early stages due to a lack of funds for advertising and marketing. Retail partners like Nordstrom acted as a "huge megaphone," featuring her products in catalogs and driving her direct-to-consumer business. She described the ideal retail structure as a pyramid, with wholesale forming the base, specialty or experiential stores in the middle, and e-commerce at the apex, emphasizing that these components must harmonize for a successful brand. Scott has shared this strategy with other entrepreneurs, including Kelly McGee and Cristina Ashbaugh, co-founders of Yardsale, a ski gear brand she backed on Shark Tank. Yardsale secured an expansion into REI, a significant milestone attributed to Scott's guidance. Scott's investment in Yardsale was $250,000 for 10 percent equity, with a $5 royalty per sale until she recouped $300,000.