S.W. Basics

I started S.W. Basics in my Brooklyn apartment in 2008 as an Etsy side hustle.  

The idea was to make the best possible product with as few ingredients as possible.  It had to be 100% natural and sustainable. It couldn’t irritate my sensitive skin. And it had to work. 

The side hustle quickly became a full-time pursuit.  The brand took off.  We found ourselves in Anthropologie, Urban Outfitters, Whole Foods, and Target.  We were featured by Gwyneth Paltrow and Martha Stewart and Vogue.  

I wrote two books about DIY wellness and skincare.  They sold thousands of copies.  

But the startup journey isn’t all glitz and glamor.  In the 15 years we’ve been in business, we’ve gone through the full cycle of difficult growing pains. 

We’ve had supply chain issues.  We’ve had failed distributor deals.  We’ve had a lot of hard lessons. And that was all before 2020. Since 2020, we’ve had to rebuild our company from the ground up. We lost a significant portion of our retail sales, lost our manufacturing and warehousing relationships, and had to cut back our production capacity by almost 90%. 

But this has all translated to so much learning and new opportunities.  We’re now in a position to take over our supply chain, run all of our operations and distribution in-house, and grow in a way that truly benefits our customers and community.

Investment Opportunity

We’re looking for growth capital to expand our manufacturing and operations, while also bringing some of our supply chain in-house.  This will allow us to launch more products, hire more people locally, and have full control over the quality of our product.  

We’re offering investors the opportunity to receive a 2x multiple on their investment, with an anticipated payback of five years (18% yearly rate of return expected).  

We plan to pay investors with a percentage of our quarterly revenues until all investors receive a 2x return.  

$5,000 today → $10,000 in five years 

In 2022 we did $212,160 in revenue.  This primarily came directly from our website.  

We anticipate $293,130 in revenues in 2023 and $586,260 in 2024.  

Here are the three key reasons we believe we can accomplish those goals.  

1. Expanding in-house production will let us fill open orders we have had to turn away in the past few years. 
2. Becoming caught up on production allows us to launch new products that have been sitting in the pipeline.
3. Having inventory in stock means we can strategically re-launch our wholesale business, including Amazon, which was over $2 million in sales before the pandemic. 

Our revenue forecast and planned investor payment schedule can be found here.  

The SW Basics Brand

S.W. Basics has survived years of ups and downs by maintaining our core brand values no matter what happens. It’s not just about the products, it’s about the mission, it’s about making our customers feel good, and it’s about changing an industry for the better. We follow a few basic truths throughout our brand ethos: 

• We believe that “all natural” should literally mean just that, and should be the norm. 
• We believe that organic, Fair Trade, and family farms can save us. 
• We believe that American Made is making a comeback. 
• And we believe that a truly great brand should empower its community and also help it thrive.

Our Product

Of course, it’s also about the products. All of our formulations are created from scratch from ingredients that are good for your skin (and you can actually pronounce), like shea butter and rosewater and apple cider vinegar. We do not use any fillers, additives, emulsifiers, fragrance, or sulfates so that the products can be used on the most sensitive skin, and on all skin types–including babies. 

We took a novel approach to our product line:

• 5 ingredients or less
• A commitment to 100% natural formulations 
• High ingredient potency
• Reduced ecological impact

We proudly display our ingredients on the front of our bottles, and we teach our customers how to craft their own custom routine. 

We prioritize ethical sourcing of all ingredients and our packaging is glass, sugar cane, and shipped with as much recycled material as possible. 

Our focus and goal for raising capital is to centralize our production and operations in Clarksdale.  By bringing more aspects of our business in-house we will create better margins and consistency in keeping up with demand. We will be able to become even more eco-friendly and sustainable, while also improving our profits. 

Distribution

Currently, over 90% of our revenue is direct to consumer. 

Our average order value is $45 and our return customer rate is almost 67%. 

Our newsletter is our number one source for customer acquisition, is up 36% month over month, and accounts for 68% of our total online revenue. 

After pulling out of our large retail relationships in 2020, we learned how difficult it is to be able to afford to scale a product in stores–small brands are charged for shipping, shelf space, marketing and advertising, store discounts, damages and waste, and are required to sometimes wait over 90 days for payment. 

We know now that it’s important to not only launch in stores with a product that sells, but also one that can be manufactured in a way that can handle the costs of growth. By launching new items and preparing our production for scaling, we will be able to strategically go back to wholesale relationships that we can now handle. 

\We expect revenues in 2024 to be 60% D2C as we continue to optimize those channels.

We expect revenues in 2024 to be over 50% retail expansion. 

Clarksdale, Mississippi

Speaking of community!  I moved my Brooklyn-born company to Clarksdale, Mississippi, the Heart of the Delta.  

Why Clarksdale, Mississippi?  Because of the opportunity to make an impact in a town that has seen it all. We hire local people, provide on-the-job training, and collectively support and re-invest in local businesses and causes. Clarksdale is an incredibly diverse, tight-knit community where everyone has had to band together to survive–every small business and employee is keeping the town alive. 

S.W. Basics prides itself on the working environment and culture we’ve established in our community.  

By keeping all development, production, fulfillment and logistics in house, we are creating jobs that pay 2-3 times more than the median local income. 

More importantly, the business is run on a cooperative, open-book model. By including employees in daily business operations and decision-making, we’re supporting local candidates in developing skills to build a career on.  

Additionally, all employees receive ownership in S.W. Basics as stockholders.  

With this funding we will be able to grow our infrastructure enough to quadruple our current production output and capabilities. This means new products, improved operational efficiency, and significantly increased impact on our local community.

Our Team

Join us in building a brand that will have a huge impact in our local community.