Vinted is known for being one of the world’s top growth stories. Ambition A.M. takes a look at why budding entrepreneurs might want to look at it a bit more closely, highlighting what important lessons there are to be learned.
We all might know the story of Vinted by now, or at the very least, have used the secondhand clothing app to make a ‘new’ outfit for an upcoming holiday financially feasible.
It is no secret that Vinted’s popularity has soared over the past few years, with even myself (and other rather proud anti-trend-hoppers) hopping on the trend.
Although Vinted was born between two strangers at a house party in 2008, its mass popularity didn’t really pick up until around 2017. By 2019, it had become Lithuania’s first unicorn. Today, it’s valued at around £3bn.
So what was happening before then? Nine years is a long time to wait for your business to kick off.
Vinted’s founder, Milda Mitkute, tells me she didn’t even anticipate it becoming a ‘business’ at all — but she did enjoy making some extra cash from selling her clothes.
Unleashing outside talent
You could say the fashion industry’s shift into mindful secondhand shopping over the past decade definitely played a part in Vinted’s rise, but if you look behind the scenes of its ‘textbook start-up journey,’ you’ll find a hidden entrepreneurial lesson that is key to building any successful brand.
When is it time to let someone else take over and bring your business to the next level?
By 2016, Vinted was struggling. The team noticed the need for an extra pair of hands, and once they brought Thomas Plantenga on board — who is now the group’s chief executive — things began to shape up quickly.
“New people coming in can shape shift teams,” Plantenga says, telling me his non-emotional view of the status quo was needed to fire half the team and get Vinted back on its feet.
But, despite all that he brought with him when joining in on the fun, Plantenga agrees that ‘entrepreneurship’ is never a one-person-conquering-all story.
“Yes, as a first you need to have grit, you need to have certain qualities, but your team needs to have the right skills all together and I think it was a match of skills that enabled us to do this,” he says.
Set your ego to the side
Traditionally, an entrepreneur is defined as someone who can build and scale a business that can eventually function without them. Even though it’s not always easy to let go and take outside advice when you need it.
Mitkuke, however, says setting your ego aside is key to managing the scale of any rapid-growing or ambitious business.
To work on your weaknesses, it’s very time consuming… especially if your company is growing so fast, and it’s so ambitious — you don’t have time — you simply don’t have time.
Milda Mitkute
Now, the journey might seem simple to the average reader, suggesting that, of course, it was just another company that hired another CEO.
If you’re a budding entrepreneur looking to scale your start-up, you might want to look a little closer.
‘Founder’s Syndrome’ — the term coined for when an entrepreneur fails to see the need to take on outside help — is one of the biggest barrier’s to new business growth, and can be the demise of something that is destined for greatness.
Claire Madden, managing partner and co-founder of private equity and alternative investments firm, Connection Capital, said the story of Vinted highlights how important it is to build a structured team from the start.
After all, you might be smart enough to start a business, but you don’t always have the skill sets that come with having an entire team.
“It’s important that you build the right team around you and recognise whenever you need to step back and let someone else take the reins if that’s what’s necessary,” Madden says.
“Sometimes, if you don’t do that, then the business is not going to reach its full potential or it might go bust,” she continues.
What’s important to note, however, is that Plantenga saw the potential for the brilliant product Mitkute and her team built in the first place. He just saw more potential for where it could be headed.
If you find your business entering a moment of stagnation, or financial distress, you might just need a fresh pair of eyes to get it back up on its feet again — and it’s OK to ask for help if you need it.
If there’s any takeaway from the rise of Vinted, it’s that sometimes it can take you over a decade to notice your business’s long-term potential.