There comes a time in every entrepreneur’s life when they’re forced to change. It’s usually the point where they need to evolve from being a visionary with a dream, to a business owner that can monetize that incredible idea. In that next phase, they also need to be able to scale their business—and probably become a people manager as they build a team and bring in other professionals with specialized expertise to manage operations. For most leaders, that requires a completely different leadership approach and a radical shift in their business behavior.

Kevin Carman reached that fork in the road and knew he needed to make a decision: would he continue on as a highly-creative fashion designer doing well, but unable to take this business to the next level? Or would he assume the role of the CEO. The latter meant doing what was necessary to elevate Locals Only LI from a regional fashion phenomenon on Long Island to a thriving fashion brand with the potential to grow into a national (and dare we say global) brand?

He chose the latter, but it wasn’t without difficult decisions and a great deal of personal growth.

An all-too-casual business structure

I first engaged with Kevin when we were introduced through his mentor, a mutual acquaintance. At only 25-years-old, Kevin explained that Locals Only LI was blowing up (in a good way), but that he needed strategic business guidance. Several discussions and a review of his financial statements underscored his fashion legitimacy.

He had a real brand with substantial market reach. His casual streetwear (mainly hoodies and t-shirts) featured unique designs and drew long lines at pop-up stores, or sold out through e-commerce sales.

But like so many start-ups, the company lacked structure. When I sat down with Kevin and asked him for a fourth-quarter sales forecast, he explained that his projections only stretch a week in advance—at most. But Q4 is the most important time of year for any fashion brand, indicating that Locals Only LI was likely leaving significant growth-driving revenue on the table. Return rates weren’t being tracked and there was no strategy to manage seasonal changes or merchandising.

Many of the hidden costs of e-commerce, from cancellations to shipping charges, were going unchecked.

“Scott provided so many things, from insight to the functionality of how to run a brand, to timeframes and timetables, even the buying side of it on the consumer side,” Kevin recalls. “He helped me get my business on track.”

Tough questions

It goes without saying that the imagination and brand brilliance behind Locals Only LI is distinctly Kevin’s. He took a page from fashion behemoths such as Nike, limiting production and sprinkling product to key retailers to control demand, while using Instagram to build buzz among his 18- to 30-year-old target market. He was working in a leadership vacuum, yet had the foresight to recognize that his success would eventually be compromised by his limited business expertise.

I simply challenged him to quantify his ambition and work with me to lay out a plan that would help realize the brand’s full potential.

Did he want to grow to $5 million in sales? If so, he would need to hire staff with the right experience and expertise. A do-it-yourself approach was a non-starter. Instead, he would need to delegate work and streamline various processes. To start, that would mean developing a strategy to replenish inventory of staples such as his signature hoodies over a 90-day cycle. Product diversification into categories such as loungewear or outerwear could open the door to new growth and was an idea that was put on the table. He could collaborate with another brand for limited-edition product runs in an effort to expand Locals Only LI’s target audience and piggyback on another brand’s established marketplace awareness.

As a leader, he would need to change his behavior and embrace an entirely new role working on the business rather than in it. It wouldn’t be easy, but I knew that with the right tools, he was well equipped for the task.

Personal growth and a new direction

What was probably most important is that our working sessions were always honest and to the point. We had the facts and a viable strategic direction. Kevin would either execute or he wouldn’t. Locals Only LI would grow or flail and eventually die, as all brands do as their growth trajectory flattens. As a young entrepreneur, Kevin had the opportunity to make his mark.

He’s fully embraced the challenge, working to build a team and investing in the company’s infrastructure heading into this year’s critical holiday season. He’s well positioned to capitalize on pandemic-driven demand for new product. His mental health is also in a better place.

The budding fashion mogul was burning out. He was growing tired of the grind because the hours worked weren’t always matching the revenue earned. These and other challenges were impeding his creativity. The story would be familiar to many a CEO—no doubt with more experience than Kevin—that have been brought down under even less operational strain.  

He recently explained one of the key takeaways he gleaned from our time working together: “What always sticks in my head that he said to me is when Scott said, ‘Is she going to buy it?’ When you look at it that way, you’re working to understand whether your customers will not only buy a garment, but would they wear it, is the aesthetic right? It’s a simple, powerful concept.”

So is an entrepreneur’s drive and determination to take a brand from local to global. One day I think we’ll look at Locals Only LI’s growth and agree that Kevin Carman was the right person for that job.

Scott Polworth, Founder and Principal

SFP Solutions