What To Do Next
Steven Borrelli launched Cuts Clothing with $50,000, no full-time employees, and a lot of confidence about what it would take to build a brand. In the early days, the team was spread across four different cities, and Borelli even paid himself in credit card points. What he didn’t have yet was a deep understanding of how to run a business. In this episode of What to Do Next, Steven joins host David Segal to reflect on the lessons that came from learning those skills the hard way. As Cuts grew from a simple t-shirt brand into an 8-figure apparel company, Borelli ran into the kinds of mistakes many founders make early on, from product decisions that didn’t work to inventory bets that tied up cash. Over time, those experiences reshaped how he thinks about growth. Instead of chasing expansion at all costs, Steven now focuses on protecting cash, managing risk, and building a business that can grow sustainably. Along the way, he shares how Cuts approaches marketing, the signals that suggest a business may be heading into trouble, and why slower, more disciplined growth is often the smarter path. — Brought to you by: Highbeam—Grow your brand with Highbeam’s cash management platform: https://www.highbeam.com/ [https://www.highbeam.com/] — Where to find Steven Borrelli: • X: https://x.com/stevenborrelli [https://x.com/stevenborrelli] • LinkedIn: https://www.linkedin.com/in/borrellisteven [https://www.linkedin.com/in/borrellisteven] • Website: https://www.cutsclothing.com [https://www.cutsclothing.com] Where to find David Segal: • Website: https://www.highbeam.com/ [https://www.highbeam.com/] • YouTube: https://www.youtube.com/@wtdn.podcast [https://www.youtube.com/@wtdn.podcast] • LinkedIn: https://www.linkedin.com/in/david-segal-80b6079 [https://www.linkedin.com/in/david-segal-80b6079] — Timestamps: (00:00) Intro (01:23) Cuts Clothing’s scrappy early days (03:11) Lessons from expanding beyond t-shirts (13:21) Bootstrapping Cuts (15:50) Learning growth strategy and cash discipline the hard way (19:53) Warning signs a business is in trouble and the case for slower growth (24:29) De-risking inventory (29:58) The biggest buying mistake Cuts made (35:40) Cuts’ marketing strategy and how influencers fit in (43:24) Lightning round — Referenced: • Patrick Mahomes: https://www.chiefs.com/team/players-roster/patrick-mahomes [https://www.chiefs.com/team/players-roster/patrick-mahomes] • Winners Wear Cuts with Jeremy Piven: https://www.facebook.com/jeremypivenpage/videos/1491281635538429/ [https://www.facebook.com/jeremypivenpage/videos/1491281635538429/] • How To Build a Luxury Brand with No Outside Funding: https://www.youtube.com/watch?v=LiSRBYp4wa4 [https://www.youtube.com/watch?v=LiSRBYp4wa4] • Steve Kaplan: https://en.wikipedia.org/wiki/Steven_Kaplan_(investor) [https://en.wikipedia.org/wiki/Steven_Kaplan_(investor)] • Steven’s open letter to President Trump: https://x.com/stevenborrelli/status/1912177179552809119 [https://x.com/stevenborrelli/status/1912177179552809119] • TJX: https://www.tjx.com [https://www.tjx.com] • Lululemon: https://shop.lululemon.com [https://shop.lululemon.com] • Vuori: https://vuoriclothing.com [https://vuoriclothing.com] • Kickstarter: https://www.kickstarter.com [https://www.kickstarter.com] • Wayne Gretzky’s quote: https://www.brainyquote.com/quotes/wayne_gretzky_383282 [https://www.brainyquote.com/quotes/wayne_gretzky_383282]
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