Hi there,

Welcome to the 12th edition of "State of anew sleep".

Every month I share snippets of what I (and the team) at anew sleep are working on.

Here's what happened.

"We don't believe you can increase your ROAS as you scale."

Last month I wrote we're experiencing a big uptick in our ROAS.

All whilst breaking the budget on index 105.

ROAS rose by +35% in the full month of December - surpassing the ROAS of November.

Crazy.

It's never one or two things that drive such results, but I highly attribute it to 4 pillars we really master.

  1. Precision media buying utilizing a profitable ad account structure
  2. Data-driven high-converting content (thanks to PL for helping with this)
  3. Unit economics on lock - no shaky hands here
  4. Doubling down on what’s working long term - no quick fixes

However, it hasn't always been this way. Going back one year from now we didn't have these metrics but had a clear vision of how we'd get there.

At the beginning of 2024, we met with some high-profile e-commerce investors. They were founders of 9-figure brands looking at our early 2024 metrics and ambitions for 2024 and beyond. One thing came around from all of them:

"We don't believe you can increase your ROAS as you scale."

When looking back now I know that time, consistency, and commitment to the 4 pillars are what made all the difference.

So if you're reading this and thinking:

"ROAS too low. Not profitable. Can it even be turned around?"

It can.

Sold out

We're sold out all the time. Also going into 2025 I can see multiple important SKUs sold out and soon others becoming it.

I wish it were a positive thing. It is to some degree.

But with 60 days of production and 45 days on sea (let's be honest it's always 60 days here too) it's near impossible to forecast these things.

It was the main reason for us seeking a cash investment into anew sleep in Q1 2024 - to stock up big time.

We ended up not taking an investment at that time.

I know that in 2025 we need to get a solution in place to have even more cash at hand to order both bestselling SKUs, stock more variety in our product offering, and take some bets with new product categories.

It could be financing through the bank, revenue-based financing, or taking an investor on board.

Time will tell!

Reflecting on the year we had

2024 has been great.

2024 has been challenging.

Going into 2024 we were 8 people working on anew sleep.

I started the year as a full-time e-commerce brand owner.

Now part-time as I have gone back into my agency and now manage anew sleep on the part-time.

anew sleep is now 2 founders part-time (the third one doesn't put in many hours) and two part-time in customer service.

And the craziest thing is performance is better than ever before.

I can't wait for 2025 to unfold as we're doubling down and wanting to grow. This means more products, figuring out the cash situation, and hiring more people to anew sleep.

New hire - do you know them?

We're hiring an EIR/BA (Entrepreneur in Residence/Business Analyst) to work the day-to-day in our e-commerce.

If you know someone who's young, ambitious, and wants to learn on the go - then my inbox is open.

The person doesn't need experience right now. 10 years of leadership taught me that I can teach anyone with a bright mind and a desire to learn.

Conclusion

Thanks for reading so far. I will be doing this every month. If there's something specific you want to hear about in these updates: Shoot me a message on LinkedIn.

See you in a month.

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