Lalo
Getting a consumer product company off the ground is tough. Read how Lalo managed to do it.
2 min. read
The birth of a company.
“It’s not about being the cheapest or the most expensive. It’s about just saying, what is the right price where we can provide the most value?” said Greg Davidson, CEO & Co-Founder at Lalo. But starting a baby products company is not an easy task. Even a value-priced baby stroller or high chair requires significant up-front costs for production and inventory. By sticking to their tagline–”We’re here so you can be there”–and with a little help from Plastiq, Lalo quickly took its first steps.
Walking before they run.
“We were taking big risks, buying inventory in the beginning. Especially as a new brand with new products–are these going to sell? I don’t know,” said Davidson. “Anything that helped mitigate that risk and mitigate cash flow was always key to me.” That’s why Plastiq helped solve a large piece of their financial puzzle.
Trying something new.
With the roaring success of their stroller, Lalo started expanding into other product lines. They smartly took advantage of Plastiq to reduce their risk, buy more time and take more control over the finances of their not-so-small-anymore company. “I’m able to use Plastiq to pay my vendors for inventory, extend my cash flow, and also, hopefully, be able to see that inventory turn.”
Growing up fast.
The extra cash float gave Lalo the breathing room it needed–especially with overseas vendors. “Plastiq allowed us access to these lines of credit for paying out overseas vendors, which has been huge for us to grow efficiently without having to raise more dilutive equity capital along the way,” said Davidson.
Literally, we might not be in
business if it wasn’t for Plastiq.
Greg Davidson, CEO & Co-Founder,
Lalo
How to parent a company.
With more than 550% year-over-year growth in the 3 years since their birth, Lalo is all grown up. They understand the challenges parents face and it’s why their ever-expanding product line has their customers–kids and parents alike–raving. More so, Lalo now understands the challenges businesses face when it comes to finances. “There are times where Plastiq literally saved us. For sure, without a doubt. It helped us immensely to keep things going in the direction we wanted, and we’re seeing the dividends now in many ways.”
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