For Tavis Malcolm, a former Eagle Scout from New Mexico, this camping accident ended his life. Instead, he turned that experience into a booming entrepreneurial opportunity. Seven years ago, while on a camping trip with his wife and their newborn son, Malcolm faced a significant challenge: finding a suitable sleeping bag for his infant. This experience sparked his entrepreneurial spirit. It gave birth to him starting Morrison Outdoors, where they’ve made it their mission to craft topnotch, high-quality sleeping bags for babies, toddlers and adults alike.
By June 2018, Malcolm was ready to take his own leap of faith, leaving the security of his marketing career behind. He spent his $3,000 life savings to start Morrison Outdoors out of his garage. His vision was simple—make innovative, high-quality products to serve families that love the outdoors. The startup hit the ground running, providing cutting-edge solutions. One of these notable new products is the Mega Mo, their quirky, adult-sized sleeping bag with pockets, sleeves and a handy, bottom zippered opening.
Until now, Morrison Outdoors has feasted on SUCCESSES in an uncharacteristically short incubation period. In less than a year after opening, her shop had amassed $850K in sales. This success was achieved with a very basic marketing budget of under $15,000. While Malcolm’s small business has every intention of being profitable, first-year projections estimate that it will bring in $1.1 million in additional revenue by the end of 2024.
And to stoke the entrepreneurial fire even more, co-founder Tavis Malcolm pitched the business on the hit TV show Shark Tank. Most recently, he pitched Morrison Outdoors in front of a panel of investor judges. He was seeking an investment of $300,000 for 10% equity in his company. Lori Greiner and Robert Herjavec both chose to drop out of the deal. Mark Cuban and Barbara Corcoran were in next, trading $300,000 for a 20% equity stake in Morrison Outdoors. Malcolm jumped at their offer, ready to take his business to the next level.
Despite the hope raised by this remarkable partnership, the agreement soon collapsed after the taping of the show. This bump in the road wasn’t enough to stop Malcolm; rather, it spurred him on to improve his business tactics. He acknowledged that Morrison Outdoors was unable to make a profit in 2023. Their hubris in selling marketing strategies eclipsed key factors to keeping profitable margins healthy.
“That is the best lesson to everybody watching. When you chase topline growth, you’re going to have to chase your profit margins because they’re leaving too,” – Mark Cuban.
Cuban’s advice strikes a chord with Malcolm as he looks back on his experience. He knows from experience that if you’re not careful to keep growth in service of profitability, you’ll find yourself in a challenging situation over time.
Despite the challenges, Malcolm is still hopeful about the future of Morrison Outdoors. He understands the value of putting money back into the business and being in the driver’s seat of it through smart financial decisions.
“When your bottom line goes up, not only can you control your own destiny, but you can reinvest in your business and it makes you more attractive to investors like us,” – Mark Cuban.
Morrison Outdoors is working to grow their product line and reach new customers. Tavis Malcolm is committed to doing it right based on lessons learned and continuing to put innovation and profitability at the center of his business plan.