Millionaire University How 1-800-Tshirts Went From Basement Side Hustle to a $6M Brand | Tom Rauen
May 25, 2025
Tom Rauen, founder of 1-800-Tshirts, shares his inspiring journey of transforming a basement startup into a $6 million brand. He discusses the critical role of his mother as his first employee and the challenges of scaling from 1 to 42 employees. Rauen reveals unique marketing strategies, including breaking a Guinness World Record, and emphasizes the importance of customer experience through personalized service. He also covers how branded online stores can empower small businesses and turn merchandise into a profit center.
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Basement Startup to Growth
- Tom Rauen started his t-shirt business in his parents' basement with his mom as the first employee.
- They learned the business from scratch, paving their own path rather than following a traditional route.
Scaling and Brand Acquisition
- The company grew from a 2,000 sq ft location to a 35,000 sq ft space over years, acquiring the 1-800-Tshirts brand in 2020.
- The acquisition, a 5-year process, came at a crucial time during COVID and propelled growth.
Power of Online Branded Stores
- Online branded stores became vital during COVID for small businesses to connect with customers and generate revenue.
- Custom apparel evolved from mere uniforms to profitable brand marketing tools.