Meet The Inventors: Bret Rasmussen of KURU Footwear On How To Go From Idea To Store Shelf

Admit when you don’t know and/or don’t have the answers. Doing this is a powerful way to show vulnerability and to rally the team. When I tell them I don’t have all the answers, it creates a space for them to step in and find the answer themselves. Rather than waiting for me to tell them what to do.

As a part of our series called “Meet The Inventors”, I had the pleasure of interviewing Bret Rasmussen.

Bret wanted to start a shoe company in 5th grade and KURU Footwear is the realization of that dream. As a child, he became fascinated with the possibility that the products we wear have the potential to change the way our body performs. He worked briefly for a start-up manufacturing company and was laid off. Facing a crossroads, Bret had the choice to go get a job or pursue his dream to start a shoe company. He chose the latter and launched at the peak of the Great Recession in 2008. Undeterred, he pivoted KURU to become a direct-to-consumer shoe brand focused on helping people with foot pain like plantar fasciitis, heel pain, fallen arches, and more. Bret is a first-time entrepreneur who has, save for a small initial seed investment, bootstrapped KURU to become a fast-growing, DNVB (Digitally Native Vertical Brand) shoe company.

Thank you so much for doing this with us! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a bit about your “childhood backstory”?

I grew up as a citizen of the world. I say this because I really grew up across the country and the world. My mom is an immigrant and I was born in the US while my parents were attending University in Utah. In fact, my mom couldn’t speak English when she got married. And I’m super proud of her grit to tackle a whole new world and culture and become the woman and mother she is today. I grew up with three siblings. After my dad graduated from University, we moved to Indiana. He then got an opportunity to work and live internationally. This is when we moved to Italy and then Taiwan. We eventually returned to the States and I graduated High School in Texas. I believe my childhood infused within me an awe and wonder for how diverse the world is. I was exposed to different peoples and cultures. I then attended BYU where I studied Business Management with an emphasis in Finance. I also pursued an English Minor (which, by the way, I feel has served me very well as I learned how to more effectively communicate and persuade).

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

I have a quote hanging in my office by Ludwig van Beethoven. It says, “Don’t only practice your art, but force your way into its secrets. For it and knowledge can raise men to the Divine.” I really like this quote because I feel like it’s the only way to live a full, wholehearted life. One that pushes me beyond mundanity and towards fulfilling my life’s purpose. I’ve learned that the more I dig into my art, or that which I value most, the more I discover its secrets. The more I discover who I am. And I learn that I’m way more capable of doing and accomplishing hard things. For me, when I conquer these challenges, I feel elevated. At times it even feels almost spiritual-like and self-actualizing because I’m living closer to my potential.

Ok super. Let’s now shift to the main part of our discussion. What was the catalyst that inspired you to invent your product? Can you share the story of your “ah ha” moment with us?

As a child, I wanted to start a shoe company. It was in 5th grade that a classmate had bought a pair of Nike Air and was bragging about how he could run faster, jump higher, and perform better. As a child, I became fascinated that I could wear a product that enhances the way my body performs. After I graduated from University, I decided to chase my dream to start a shoe brand.

I wanted to invent a technology that would drive real value for the customer. I thought to myself, “if I can figure out how to implement an orthotic built directly into a shoe, it’s better, faster, cheaper, and easier for the customer.” To this end, I researched shoe inventions and patents and learned about the biomechanics of the feet.

Armed with this knowledge, I invented a technology and got it patented. At the time of invention, I wasn’t trying to solve foot pain, I simply wanted to create something that was biomechanically correct and scientifically sound to provide the best possible support to the heel of the foot.

Unbeknownst to me, shortly after we launched in the marketplace customers came to KURU telling us we solved their plantar fasciitis and heel pain unlike anything else they tried.

There is no shortage of good ideas out there. Many people have good ideas all the time. But people seem to struggle in taking a good idea and translating it into an actual business. How did you overcome this challenge?

What I’ve learned is every industry is extremely competitive, footwear notwithstanding. It’s very difficult taking an idea to market and realizing success.

I had some guiding principles that increased our likelihood of success:

1. Create something with real, inherent value. I didn’t want to launch just another shoe brand. I wanted to invent something that was uniquely different, better, and provided more value than anything else in the marketplace. This resulted in our patented KURUSOLE technology. In fact, the first factory we worked with chose to work with us because they had never seen a shoe constructed with technology like KURU. And this was a factory that is part of one of the largest, publicly-traded factory groups in the world. So even they saw the uniqueness and value.
2. Be flexible and ready to pivot. As I mentioned, I wasn’t targeting foot pain when I launched KURU. Fortunately, customers with foot pain discovered KURU, purchased our shoes, and then reported to us that KURU changed their life by removing their foot pain. As I made this discovery, I realized we needed to pivot to target people struggling with foot pain like plantar fasciitis, arch pain, heel pain, heel spurs, and more. This created product-market fit. We could have never achieved this principle without achieving the first principle of a technology that delivered real, inherent value.
3. Patience for Growth, Impatient for Profit. At KURU, we are very scrappy and resourceful. This value has been around since the beginning. Our focus on getting profitable as quickly as possible has forced us to focus and prioritize that which is most important. I believe this is one benefit of not raising very much money, it forces us to exercise astute judgment about where we invest every single dollar. Rather than trying to grow at all costs.

Often when people think of a new idea, they dismiss it saying someone else must have thought of it before. How would you recommend that someone go about researching whether or not their idea has already been created?

Funny you ask. My original technology idea was exactly this. It had already been invented. I made this discovery as I researched footwear patents. I discovered that a very large shoe company had a series of patents along the lines of my original idea.

Initially, this discovery bummed me out. However, as I read more patents, I learned more about the biomechanics of the foot and realized I could invent an even better technology than my original idea. That’s when I pivoted to figure out how to get an orthotic in a shoe that could dynamically adapt and flex to cup the heel of the foot.

I would always tell someone if they really believe in their idea, and if they discover it’s already been done, don’t give up. And challenge yourself to tweak and pivot to an idea that can drive even more value to the customer.

Did you have a role model or a person who inspired you to persevere despite the hardships involved in taking the risk of selling a new product?

I am very fortunate that my father retired shortly after I launched KURU. He worked in corporate finance throughout most of his career. Which means he served as a great complement to my skill sets. When we launched, I was focused on product development, innovation, and marketing. While my father managed the operations, finances, and logistics.

Together, we made a powerful duo and we were able to get a lot done effectively and efficiently. I was able to bounce ideas off of him.

As the visionary, I have lofty goals and dream big. He’s more grounded. So this tension was healthy as we grew and scaled. And it helped us make much better decisions.

For the benefit of our readers, can you share the story, and outline the steps that you went through, from when you thought of the idea, until it finally landed on the store shelves? In particular we’d love to hear about how to file a patent, how to source a good manufacturer, and how to find a retailer to distribute it.

As I mentioned, I learned a ton by reading other patents for footwear. If you want to learn about technology, reading patents is probably one of the best resources. Patents will teach you about the science, the technology, the manufacturing methods, the designs, and more.

Since I had never filed a patent prior to KURU, I purchased a book called Patent it Yourself. I read the book and learned all of the steps required to get a patent. This proved invaluable throughout the rest of the process.

Inventing a patentable technology was priority number one. I believed I needed a patent to raise money from investors and to convince customers to try and buy KURU over other shoes. Once I felt I had a patentable technology, I filed a provisional patent on my own, using the guidance in the Patent it Yourself book. A provisional patent was relatively inexpensive and bought me an additional year before I had to file the actual utility patent.

We actually won the grand prize of the University of Utah Business Plan Competition. Part of our winnings was $15,000 of in-kind legal services from a regional law firm. I was able to use those in-kind services to get our utility patent filed.

I then spent approximately two years developing the product and technology and networking in the shoe industry. You have to realize,I had zero connections to the shoe industry before starting KURU. I kept asking for introductions and referrals from people within the industry. Doing this broadened my network within the shoe industry dramatically.

Through my blossoming shoe network, I was introduced to factories and sourcing consultants in China. This helped me find the right factory to develop and mass-produce our shoes. I pitched the factories and because of the unique construction of KURU and our technology, we had a lot of interest. I got super lucky and one of the largest athletic shoe manufacturers in the world agreed to produce KURU for the first couple of years.

Lastly, we debuted in a handful of retail stores when we initially launched. To find these retailers, I borrowed my parents’ car and spent three weeks driving up and down the East Coast to find dealers to purchase our shoes. It required a bunch of cold-calling with a relatively low success rate. So I dealt with a lot of rejection.

Despite that, I had enough success to launch in stores alongside our e-commerce website.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

I’m reminded of a really funny story. I had never raised money before from investors. One of my first investor pitches was to an Angel investors group. I finished my pitch and they started to pepper me with questions. They then asked, “So, tell us, you are trying to raise money from us. And none of us have experience in footwear or apparel. Which means we can’t provide value add if we invest. Why don’t you go raise money from investors in the footwear industry?”

To which I responded, “I don’t think anyone has made a lot of money in the footwear industry.” To which the Angel group got a good chuckle.

I laugh at it now. But I think it reflected my naivete about some aspects of business. Namely how the capital markets work.

The early stages must have been challenging. Are you able to identify a “tipping point” after making your invention, when you started to see success? Did you start doing anything different? Are there takeaways or lessons that others can learn from that?

The biggest tipping point happened within a few months after we launched, during the first part of 2009. Lehman Brothers had gone bankrupt and we were in the throes of the Great Recession. Stores quit buying. And we were staring bankruptcy in the face.

Customers, who had purchased KURU in the few retail stores that carried us, called in to buy their second pair. In addition to all of my other responsibilities, I was also customer support. The customers would tell me how KURU changed their life. How they had plantar fasciitis or heel pain, and they couldn’t walk for years. And thanks to KURU they could walk again.

That’s when I realized I needed to pivot. We decided to stop selling wholesale and focus 100% on our e-commerce store. Selling direct to the customer.

This decision changed everything. We began to see massive growth. And our timing was perfect because shoe brands and shoe retailers weren’t doing much digital marketing. This made it more affordable for us to get in front of our customers.

What are your “5 Things I Wish Someone Told Me Before I Invented My Product” and why? (Please share a story or example for each.)

1. Admit when you don’t know and/or don’t have the answers. Doing this is a powerful way to show vulnerability and to rally the team. When I tell them I don’t have all the answers, it creates a space for them to step in and find the answer themselves. Rather than waiting for me to tell them what to do.
2. When switching factories, invest in a new set of tooling for the new factory. Whenever we make a shoe, we need tooling and molds to make all the parts of the shoe. These tools can be upwards of $60,000-$100,000 for a full size run. We decided to switch factories and in an attempt to save money, we asked our incumbent factory to transfer the tooling to the new factory. Needless to say, that factory was not happy that we were moving our business and they made it incredibly difficult and costly to move the tooling. So much so, that it probably would have been cheaper to simply open up a new set of tools at the new factory.
3. Have a partnership mindset. I’ve found that the more I approach relationships with a partnership mindset, the more value the partner brings to the table. Everyone has something to contribute. And I believe that approaching relationships with partners, factories, consultants and others with a partnership mindset that creates a win-win relationship produces way more value.
4. Trust your instinct and believe in yourself. So many people in the shoe industry told me it was really risky to enter the business and the chance for success was low. This really dampened my belief in myself. Yet my intuition was strong. This created inner conflict and the more I leaned into my intuition, ignoring the naysayers, the more quickly things moved forward. While the more I doubted, the more obstacles I encountered.
5. Find mentors and advisors. I really didn’t have a mentor outside of KURU. Sure, my father was working with me in the business. I think it would have been very valuable to find a more seasoned entrepreneur or advisor who I could reach out to and who could champion what I was trying to accomplish.

Let’s imagine that a reader reading this interview has an idea for a product that they would like to invent. What are the first few steps that you would recommend that they take?

I would encourage them to refine their invention such that it is patentable. Patents are so powerful at protecting you and go a long way to increase your likelihood of success.

If you don’t have the money to hire a patent attorney, buy the book Patent it Yourself and learn all you can about how to get a patent filed. Definitely use a patent attorney when you file the actual patent. But you’ll be surprised how much you can do before having to pay an attorney.

Also, make sure to create some proof-of-concept prototypes to ensure you’ve captured the full scope of your invention. You want to make sure your patent is comprehensive and captures the full extent of your invention. If it doesn’t, it can get costly very quickly.

There are many invention development consultants. Would you recommend that a person with a new idea hire such a consultant, or should they try to strike out on their own?

I’m not sure as I’ve never worked with an invention development consultant. I presume they offer a valuable service. Though I suspect it’s really important to pick the right consultant.

I’ve found that many inventors get really excited and emotional about their inventions. And this emotion can get in the way of better business judgment.

If you decide to hire an invention consultant, I would highly recommend you have an attorney review any legal documents executed between the parties to make sure your goals and objectives will be achieved with the consultant.

What are your thoughts about bootstrapping vs looking for venture capital? What is the best way to decide if you should do either one?

Some of the most valuable companies in the world were bootstrapped. While others raised a gazillion dollars in venture capital. I don’t think there’s one right answer to this question.

In our situation, I was unsuccessful raising the money I thought I initially needed. In hindsight, it was a huge blessing. It forced us to pivot more quickly which resulted in discovering product-market fit and drove profitability more quickly.

Some things to consider when deciding whether to bootstrap or raise venture capital include:

1. How competitive is the space?
   If there are a lot of competitors that are going after the same opportunity as you, you’ll want more financial resources to compete.
2. What are the barriers to entry?
   If it’s really expensive or difficult to enter your space, and you’ve successfully entered the space, maybe you can bootstrap.
3. Is your business defensible with IP?
   If you have patents and other Intellectual Property that prevents others from knocking you off, then you may have more flexibility on how much capital you need.
4. How fast is your industry growing?
   If you are going after an opportunity that’s greenfield and fast-growing, you have to decide what it will take to be in the first or second place position. If getting to first place takes a bunch of capital, that helps answer the question.

I’m sure there are more questions to consider. Those are some that come to mind.

Ok. We are nearly done. Here are our final questions. How have you used your success to make the world a better place?

Every year, we donate thousands of pairs of shoes. We donate them to schools for youth who don’t have shoes and we donate to the homeless. Both groups of people can benefit tremendously from having healthier feet so they can focus on life. In addition, we’ve made donations to various charitable organizations.

Throughout the years, we’ve also hired refugees to help them develop job skills and provide for their families.

Another thing we do is provide a unique sabbatical program to our employees. This program includes paid time off and a check from KURU so they can check off an item on their bucket list.

You are an inspiration to a great many people. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

I would inspire everyone to do the hard work necessary so that they can show up wholeheartedly and vulnerably, acting in alignment with their heart and soul.

I believe the more we look inward to more fully understand ourselves, who we are, and our potential, the more we will choose the good, take the risk, and make the world a better place. For each and every one of us has the capacity to create so much good in this world.

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.