The Underdog: He Turned His Last $4,000 Into $48M

Today on David to Goliath, we rewind the tape of the life of Aaron Spivak and the monumental comeback of Hush Blankets.

Aaron is a Canadian founder who burned the boats and turned his last $4,000 into $48M to keep the promise he made to his mom. An underdog who risked it all. 

For Aaron, there is no room for Plan B; instead, he thrives on the innovation born from constraint—the one egg, one basket philosophy. In these moments, the human mind, rather than capitulating, blossoms into resourcefulness and resilience.

Challenges are faced head-on, and success is the only outcome, regardless of the odds.

Aaron unveils the secret behind exceptional entrepreneurship – transmuting belief into a contagion that permeates the entire team, fostering an unshakable conviction in the possibility of success.

The shared wisdom from this conversation, harking back to Aaron’s youth, paints a vivid portrait of the entrepreneurial mindset – one that thrives on challenges, embraces uncertainty, and forges ahead into the unknown.

If you enjoy audio, you might enjoy the behind the scenes podcast with Aaron that this Newsletter was built from.

And now, let’s see exactly how he did the impossible and grew from $0 - $48 Million in 48 months…

Turning Pain into Promise

In 2011, Aaron's immigrant family, grappling with English as a second language, suffered a bitter blow. 

A surge in his mother’s business brought forth a new home, a sleek car, nice clothes, and the promise of an annual family vacation.

Life was comfortable, but little did they know that a single stroke of fate would alter their course.

"When I was 12, I watched my mom lose it all in a day," Aaron recounted, his voice echoing the pain of that pivotal moment.

A change in the law swept away the stability they had built – a comfortable home, a secure neighbourhood, a sense of safety.

The once cherished possessions turned into burdens as the house was sold, the Range Rover repossessed, and the family torn apart.

His brothers had to scatter, seeking shelter wherever they could find it, as the new house lacked the rooms to accommodate them. 

The financial strain pushed his father to the brink, while his mother battled the demons of depression.

In that heart-wrenching moment, as Aaron looking into his mom’s pain filled crying eyes he made her a promise:

"I will get everything back."

Determined to mend the shattered pieces, he embarked on a journey of resilience and tenacity.

"I realized I have got to make this happen myself".

Over the years, he weathered the storms of setbacks and failures, but never wavered from the promise he made to his mother on that fateful day.

The Power of Partnership: Finding Lior

In the early days, Aaron was a lone warrior, grinding away, until he discovered his partner in crime, Lior.

I couldn't help but draw parallels with my own journey, where my friend Dan, a novice in the business world, decided to join forces with me.

The transformative power of facing challenges with someone by your side in the trenches is crystal clear.

As Aaron passionately shared, "I would never tread the path of entrepreneurship alone again."

As entrepreneurs, it's easy to get lost in the loneliness of the journey. The camaraderie he spoke of, a partner who shares your values, celebrating triumphs and enduring storms together — undeniably priceless.

"No matter who you are, tough days will come. A partner who shares your values is crucial. The ability to communicate, accept feedback, give feedback, engage in therapeutic practices – indispensable."

Aaron's choice to partner with Lior wasn't random; it was a strategic alignment. He admired his success and audacity to dream big. 

He underscored the uniqueness of their partnership—distinct skills, yet, a seamless fit.

Together they wanted to fight back against a world of anxiety and insomnia and build products that allowed people to get the rest they need.

Hush Blankets was born and Aaron knew he couldn’t do this alone.

“It made me reflect on the power of diverse partnerships, where complementary strengths create a force to be reckoned with”.

"We had different skill sets but the same passion, drive, and values. Sometimes when you and your partner have the exact same skills, it's difficult."

Aaron vividly recounted the ecstasy of those early days—the first sale, the second, the third.

A $1,500 day without even having inventory.

The relentless grind before and after their day jobs in the pursuit of something greater. 

Culminating in a pivotal moment when they hit $8 million in the second year.

It's a tale of resilience, belief, and the satisfaction of seeing hard work pay off.

As the conversation turned towards nostalgia, Aaron reminisced - missing the early days.

The blissful ignorance, the delusion that us entrepreneurs have.

“There was a unique magic in all of that.”

His reflections on the evolution from a novice founder to a seasoned one struck a chord with me.

The innocence of not knowing, the courage to confront challenges without the burden of foresight – it’s how it all begins.

"Your journey as a second-time founder will be unique, but you'll yearn for the days of being a first-time founder. Being naïve, being ignorant, is one of the superpowers of first-time founders."

"I miss not knowing the extent of the challenges. But regardless, from day 1 we knew how it would end."

Navigating the Rollercoaster of Growth

Aaron recounts a huge turning point when their business teetered on the edge. Sales soared during winter, but as summer's heat descended, so did their fortunes.

With a warehouse full of inventory and a grim prognosis from Lior, the possibility of shutting down loomed large. Confronted with this challenge, they sought a lifeline.

"It became to clear to me that we have a seasonal business, and I don't want that." 

Determined to defy the odds, the duo took a huge risk—they went all in on Amazon.

The gamble paid off, and within three days, their entire inventory sold out.

Yet, the spectre of seasonality persisted.

Confronting the reality that their weighted blanket wasn't conducive to summer, the pair embarked on a journey of innovation. 

Drawing inspiration from customer feedback, he engaged with those who embraced Hush Blankets during colder months, revealing a Eureka moment.

"It's way too hot to use in the summer. We're sweating." echoed the customers.

Realizing this was a challenge faced by all weighted blanket owners across the board, Aaron and his team dedicated months and months to R&D.

Hopping on calls with customers and finding out exactly what they needed.

The result? 

The world's first-ever cooling weighted blanket, unveiled on Kickstarter in March 2019. 

Forecasting a life changing $500,000, the campaign blew past their wildest expectations, amassing an astonishing $1.5 million.

It still holds the record for the top 10 all time Kickstarter campaigns in Canada.

This propelled Hush from an $800,000 business to an $8 million juggernaut, obliterating the shackles of seasonality in the process.

The cooling weighted blanket became the golden ticket to solve a huge market problem, and turned Hush Blankets into a year-round necessity.

What I love about that – The power of the people.                      

I’ve personally worked with some big ecommerce brands – they’re always looking for hacks. 

The best funnel to use, the sexy new tool, the best ad format.

I asked Aaron how much further ahead he thinks these businesses would be if they put a few hours aside to jump on zoom calls and just speak with their customers?

His response was exactly what I expected, as he peeled back the core misunderstanding of customer acquisition cost (CPA). 

"Most people don't calculate how expensive it is to get a customer, let alone how expensive it is to lose one".

By reaching out to a mere 100 customers through email, text, or calls, businesses can solidify advocates for life.

"Giving someone something they had a say in, they're more likely to buy that product compared to one they see on a cold ad."

It's clear that the alchemy of e-commerce success isn't just in algorithms and metrics. 

The true magic lies in the unfiltered conversations and genuine connections forged with customers—the heartbeat of a thriving community.  

In a world obsessed with digital strategies, shortcuts and hacks, let Aaron’s insights serve as a reminder to pause, connect, and infuse a human touch with your people.

The Underrated Power of Storytelling

In the realm of marketing, there is one method that trumps all – word of mouth.

The kind that forges connections so deep that customers become advocates and champion the story of a product organically.

1 customer tells 5 friends, who all tell 5 friends and so on. It’s the ultimate moat to combat rising ad costs.

Although, this requires a level of dedication and authenticity that many overlook.

Aaron gets it:

"For us, it's about how authentic you're willing to get", he shared with conviction riddled all over his face.

It's a recognition that authenticity is not just a buzzword but a magnet for human connection.

"The story that moves people emotionally is always the one that's gonna find your authentic tribe."

In a world filled with copy cats and strategically crafted online personas, Aaron underscores the importance of vulnerability to stand out.

He points out that most online narratives showcase only the good news, the highlight reel.

Yet true connections crystallize when vulnerability takes the forefront—when individuals uncover not only the good but also the bad and damn right ugly. How life actually is day-day. 

It's a sentiment that Jeff Bezos echoed in his recent podcast with Lex Fridman, where he reminded us that the internet isn't real (I highly recommend listening to the conversation - it’s incredible).

But why does storytelling wield such power?

Well let’s draw it back.

Why do most people spend their hours watching Netflix? 

Because they live out their dreams vicariously through those characters.

But the 1% do something different. They make their life a movie.

Taking risks others would not, fighting in the shadows and putting everything on the line. In time thousands, if not millions of people tune in to watch their every step.

When people ask me: “Nigel how can I write better content?” my answer is simple:

Live a more interesting life. Take risks, explore, do crazy things. Then document and report back through your unique lense of experience. 

After you’ve won the audience's trust, they will gravitate toward your stories.

Then Aaron shared with me the perfect example.

"The Last Dance," the documentary chronicling Michael Jordan's journey.

Air Jordan sales soared during the airing. People bought into the legend of Michael Jordan, not just the shoes. 

They saw the true human behind the mask. 

The times he cried.

His relentless competitive drive and willingness to be his true self at all costs.

Aaron then shared an example from his own life – a story his mother told, which, when shared on TikTok, went viral.

"A good story is a good story. Moving people emotionally will always be powerful."

Ultimately, it's not just about crafting content; it's about living a life worth sharing content about.

So take risks, go on an adventure and join the 1% who make their life the movie.

The Underdog Spirit – Team Culture

In the vast arena of business, holding onto the underdog mentality while scaling is no easy feat.

Bureaucracy, company politics, slowly take hold.

Yet, it's a challenge that Aaron not only embraced but embedded within the very fabric of Hush as the empire expanded.

From making calls to listening intently, the team members immersed themselves in customer feedback, reviews, and social media channels.

Just like he and Lior did in those early days.

This was not just about staying informed but about staying completely in tune with the customer.

"When we launched PJ’s, getting the fabric and wearables right was paramount; it was the first time. It sold out really quickly because we engaged our community. We didn’t celebrate for 3 weeks because we wanted to wait for the feedback."

"When the 5-star reviews started pouring in, then we got momentum.”

This perspective recognizes that every team member, from the customer service representative on the front lines to the product designer working behind the scenes, plays a vital role in the collective success of the company. 

Everyone contributes to the team spirit. No one person is bigger than the team.

For Hush Blankets, the underdog mentality isn't just a reminder of the early days; it's a vibrant, pulsating aspect of the business to this very day. 

It's about staying connected to the customer, valuing feedback, and acknowledging that every thread, no matter how seemingly insignificant, contributes to the creation of a masterpiece.

Remember: Constraint drives true innovation. Never let your team fall to the enemy of complacency - especially when interacting with your customers.

Beyond the Acquisition: The Evolution of Success

In business, few moments rival the thrill of the big exit. It’s what we all dream about. 

For Hush, that came at the hands of Sleep Country Canada – an industry Goliath. 

A colossal milestone that reshaped the trajectory of the company. 

Inquisitively, I probed Aaron about the moment they knew the deal was done. From toiling in the shadows to finally securing the acquisition, I was curious to know how it felt.

He recounted a vivid picture of that moment – a shared experience with Lior.

"Once the board signs off, it’s a done deal. We got a call, next step is to complete the transaction. Lior and I were together, and just gave each other a high five."

The power of visualization emerges as a central theme.

It was the culmination of a vision meticulously crafted over the years. They knew this was going to happen years before and hence, the moment was underwhelming.

"I remember leaving the office, puzzled—why wasn’t it such a big moment? It’s because it was something we spoke about long before. We knew exactly how it was going to end. It had already happened in our minds, it was just about bringing it to reality.

We knew to who, for exactly how much. We didn’t know exactly how we’d get there. But we knew it would be Sleep Country Canada or someone like that. We knew this from the start."

“When it happened, it was almost anti-climactic."

The familiarity of the moment, as Aaron describes it, is both intriguing and enlightening.

It speaks to the clarity of purpose, the unwavering belief in the destination, and the journey etched in their minds.

"It was a very familiar feeling that we didn’t understand at first. There was nothing left in the towel to ring out.”

Their destiny was written long before. The difference? They believed it could happen.

And that’s the mission at David to Goliath: Getting more crazy individuals, like Aaron, to believe in their big ideas and fight with everything to bring them from the dark into the light.

Lessons Learned and Future Aspirations

In the aftermath of a game-changing acquisition, I sought insights from Aaron on the intricacies of life beyond the entrepreneurial summit.

I asked him the honest question: "Since the acquisition happened, after scaling the mountain for years and years – are you enjoying it as much?” 

His response was not what I expected:.

"That’s a very good question – I ask it myself a lot. It’s different."

The essence of his experience lies in the transformation from individual triumphs to collective success.

Aaron likens it to nurturing a newborn – coaching, challenging, and finding fulfilment in its growth.

"Now, my success is the team’s success. Watching the business service its customers. Now it’s almost like it’s my baby, I’m coaching, I’m challenging – for me, my success is the happiness, the success of the baby."

As he grapples with a tinge of nostalgia from the hustle of earlier days, he embraces the current journey of mastering the intricacies of building a larger enterprise.

"Sometimes I miss the old part – but sometimes I pick up my head and look at the office, everyone running around, now I am learning how to build a bigger business."

The conversation meandered into Aaron's role as a seasoned entrepreneur contemplating new ventures.

"At some point, I will probably dive into something new. I love being an entrepreneur, risk-taking."

I feel him. That itch never goes away.

Exploring the hypothetical realm, I asked him if he were to start and build a new business, what principles would he do differently, knowing what he knows now.

"I’d build a system first. I didn’t understand the power of systemizing things right away." 

His emphasis on structured processes for recurring tasks becomes a crucial lesson in efficient business management.

He dispels the myth of delegation, highlighting strategic placement and fair compensation as key elements for success, recognizing the potential ramifications of early chaos.

"People think delegating works – it doesn’t. You have to put the right people in the right place at the right time. At what capacity, at what pay."

It's a lesson grounded in an understanding of human psychology.

Systemize from day one and most importantly, always think about how you can empower your people.

Better to get a smaller slice of a much bigger pie.

Lastly: Overcoming Pain - Everything Always Ends

In the closing moments of our conversation, I shared a profound revelation about the impact of David to Goliath, initially a community born for just entrepreneurs.

As encountered at a recent podcast recording experience, it became evident that the initiative was touching more lives in unexpected ways.

The person who sets up the desk in the studio asked me about David to Goliath.

As I opened up to him about our movement, the emotions in him visibly shifted.

He opened up to me. We had a 20-minute conversation from him questioning life, to him taking a chance on himself (read more on the entire encounter here).

That showed me that we could be on to something bigger.

Because there’s a lot of people going through the struggle. The world is lonelier than ever.

I wanted to hear Aaron’s message for those people, considering his own battles on this incredible journey at Hush.

"Everything always ends. It’s something I really believe in."

Good times will end, and bad times will end. It always does. Everything ends. It’s a positive thing – whatever you’re going through, it will end. Sit with it."

The wisdom lies in the acceptance of both highs and lows. It’s the raw, uncut human experience.

"Sometimes I'm sitting with friends having dinner thinking: ‘these are the good days’.”

Sometimes the business is facing huge, seemingly impossible challenges – I think ‘just sit with it, it will end’. The good and the bad – just enjoy it all."

As we wrap up this conversation, I’ll leave it on this:

Life, much like the entrepreneurial journey, is a series of cycles—ebbs and flows, peaks and valleys. 

Challenges and triumphs are but fleeting moments, each contributing to the vibrant mosaic of our experiences.

Embrace the journey, relish the good days, and weather the storms, for each passing moment is a stepping stone toward something greater. 

Remember that you are not alone in your struggles.

The entrepreneurial community stands united.

So, whether you're navigating the peaks of success or trudging through the valleys of challenges, know that this too shall pass.

Sit in the pain and embrace it. Because on the other side is a mountain of growth.

It’s not just about the destination but the incredible journey that shapes who you are.

Here's to your resilience, your dreams, and the extraordinary life you are building – one moment at a time.

Keep striving, keep believing, and remember, the best is yet to come.

On her 60th birthday, Aaron’s mother was handed the keys to the car she had once lost.

He’d kept his promise.

My Top 5 Takeaways:

1) Find Friends: The path of the entrepreneur is lonely. Keep networking and searching. Once you find those few people who align with your principles (and company) it will be the best investment you’ve ever made.

2) Use What You Have: Just like Aaron winning everything back for his mom, use the insecurities or darkness in your life and let it fuel you.

3) Make Life a Movie: Take the risks others would not, bring your crazy ideas to life, and document your findings. Watch in time as hundreds, if not millions tune in to watch your every next step.

4) Focus on People: Whether it’s listeners to your customers or empowering your team, it’s all about the humans. Regardless of B2B or DTC, it’s people to people. Make this a priority and over time, you will win.

5) It Will Pass: If you’re going through pain, or happiness right now realize it will pass. This is the human experience. But remember: The lower the lows, the higher the highs. On the other side is a mountain of growth.

Take a note from Aaron’s playbook. Stop thinking small. Life is too short for mediocrity. It’s time to dare and endure.

Jump into the unknown and conquer your self doubt knowing big things are waiting on the other side.

Keep dreaming like a giant.

But fight and believe in those dreams like a god damn underdog baby.

Yours truly,

-Nigel Thomas

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