We're proud to announce March 2021’s Member of the Month inside The One Percent, Jonny Hale. His story proves it's possible to launch a brand in a matter of months and sell it to the highest bidder. As long as you keep your eye on the prize, anything is attainable.
Jonny fits perfectly with our GIVE principles. Here's why our Community and Product Manager Justus Murimi selected Jonny as The One Percent Member of the Month:
G-Grit: He worked a 9-5 job while still finding the time to build, scale, and market his business.
I-Investing: He invests profits back into buying and sourcing enough inventory to serve his audience.
V-Value: He proves to community members that entrepreneurs can be successful at any age.
E-Expanding: He plans to sell his business and hopes to build another one from scratch shortly after.
"We just sold our business! We're going to have financial stability!" Jonny Hale still cherishes the moment he told his wife, Zoe, that they'd just sold King Kong Magnetics, the couple's magnet fishing business. And it wasn't years into the making. Jonny and Zoe built it from the ground up and found a buyer in a short 16 months.
"If you're motivated enough, you find the time. You just do it." - Jonny Hale
Plan It. Do It.
Jonny has an entrepreneurial mindset, but he's also grounded. He founded King Kong Magnetics back in 2019 and worked around the clock to grow an audience and create a fantastic product. However, he never quit his day job as an IT consultant.
Where did he find time to build a business? During his daily commute. He rode the train from Queensland to Brisbane, Australia each day. The hour-long trip gave Jonny the time he needed to make a plan and put it into action. Unwavering motivation made it possible for him and Zoe to bootstrap their way to the top.
"Motivation is the difference between the people who make it and the people who don't." - Jonny Hale
The idea for King Kong Magnetics emerged after plenty of product research. Jonny discovered the growing trend of "magnet fishing," and initially, he and Zoe had no idea what it was. But search volume analytics convinced them that the sport was about to become a global craze. At the time, only a few sellers were targeting this exciting, up-and-coming market.
As it turns out, magnet fishing has absolutely nothing to do with fish. And no, it's not that fun fishing game you had as a kid either. Instead, it involves using powerful, industrial-strength neodymium magnets to locate and pull out hidden objects from the water.
Jonny and Zoe's customers have retrieved a range of goodies, from watches to antique swords. If it's ferrous, it's fishable. The magnet fishing audience encompasses everyone from families to environmentalists to enthusiasts. Some people even monetize their finds or create user-generated content showcasing their underwater treasures.
As with many entrepreneurs, King Kong Magnetics wasn't Jonny and Zoe's first venture. They also had a few years of experience selling pet products on Amazon. However, the market was too volatile. Customers regularly returned items, which they then had to destroy. But fishing magnets have a low return rate, and their audience raves about the product.
Amazon remains the primary market for King Kong Magnetics. When it comes to marketing, Amazon PPC continually provides the best results. Jonny and Zoe do accept sales on the brand's website, but don't actively promote it. Social media also plays a role in attracting new customers. Although it's not the biggest community out there, their Magnet Fishing Warrior Facebook group has about 1,000 engaged members.
While running King Kong Magnetics proved easier than their past endeavors, it wasn't always smooth sailing. Jonny and Zoe struggled to keep inventory in stock. Sure, that meant they had a great, in-demand product, but procuring more magnets wasn't an easy task.
Managing inventory can feel a whole lot like a guessing game. Manufacturers sometimes run late, lead times fluctuate, and shipping is never a constant. But when operating a physical product brand, keeping items in stock is essential. Customers will look elsewhere if they can't buy right away. Inventory availability also plays a vital role in Amazon rankings.
From the start, Jonny and Zoe realized the importance of ordering enough inventory. Initially, they had to rely on their day jobs to replenish items as they sold out. By 2020, however, King Kong Magnetics earned enough in profits to reinvest into stock. The company now has enough cash flow to keep products on the shelves.
Catching a Prospective Buyer
When Jonny and Zoe first launched King Kong Magnetics, selling the brand was always in the back of their minds. But would someone want it? Jonny doesn't consider their brand a well-oiled machine—there is still plenty of room for growth. But they've planted enough seeds to provide value to prospective buyers.
After a mere 16 months, King Kong Magnetics built enough momentum to catch the eyes of several smaller fish in the industry. Soon, it attracted a buyer from a well-known company, and Jonny negotiated the contract to make it a bit sweeter. It's an upper 6-figure deal—nearing 7-figures. Although they won't walk away with a Lamborghini, they will earn enough to pay off their mortgage and have some leftover to invest. Selling the business means financial freedom for their family.
Where Entrepreneurs Stick Together
Jonny is an active member of The One Percent, and he's also in the Helium 10 Elite group. What makes him stick around? "I like the simplicity that Ryan brings to becoming an entrepreneur."
Being part of Capitalism.com has provided Jonny with valuable content not available elsewhere. He also enjoys mingling with the group, which he finds both positive and helpful. "It's a good value. The community is good; the content is good."
Time to Cast Another Line
Although selling King Kong Magnetics is a massive milestone for Jonny and Zoe, it won't be their last hoorah. Jonny's brainstormed a bunch of new business ideas—there are about 15 floating around in his head at any given time. While they haven't pinpointed which one to pursue next, they know it will be another physical product.
When Jonny first started, he just wanted to make money, but somewhere along the way, he realized you need to know what your audience wants. Whatever he does next, he'll make sure it serves his target audience.
"It is possible. Anyone can do it." - Jonny Hale
Create a Magnetizing Business
Do you have a vision for building a brand? As long as you have a long-term view of where you want to go, you can make it a reality. You have to prepare yourself to fail—everyone does at some point. When you do, get back up and keep moving. Putting one foot in front of the other is progress.
And Jonny and Zoe did it when Jonny was 49.
Wonder what treasures hide below the water? Visit King Kong Magnetics online to join the magnet fishing trend.
Wondering what treasures hide in your entrepreneurial dreams? Think about it like magnet fishing. Even if your line comes up empty, cast it again and again. It's only a matter of time before you discover something extraordinary. You can be the next person who pinches himself and says, "We just sold our business!" You can be that entrepreneur. These free resources will help you start.