The myth-busts, hot takes, explainers, and tools worth keeping.
◆Hot Take· 1
◆Hot Take59:30
Ryan Duey Says Debt Hampered Plunge's Growth
In his closing advice, Ryan Duey warned ecommerce founders to be careful with debt and said merchant-cash-advance-style financing had hampered Plunge. He described repayment pressure as a persistent source of stress and recommended considering equity when that route is available. His co-founder separately urged inventory businesses to hire strong financial-planning expertise early and understand unit economics.
Duey described early debt as taxing and restrictive
He favored equity when founders have that option
The warning came from Plunge's experience rather than a universal financing rule
Michael Garrett emphasized early financial planning and unit economics
“tough If you have the opportunity to to raise equity you know do it”
“Get a very good FPNA person early on in the business.”
#debt#equity#ecommerce finance
✶Explainer· 1
✶Explainer04:30
A Strong P&L Can Still Leave an Inventory Brand Out of Cash
The founders learned that an inventory-heavy ecommerce company cannot be managed by looking at the month-end bank balance. Cash can be tied up in stock ordered months ahead, so reported profit, available cash, and inventory availability can point in different directions.
Inventory had to be purchased about four months ahead
A healthy P&L did not guarantee cash in the bank
A full bank account could coincide with insufficient inventory
Demand planning errors created downstream pressure
“I can have a P&L looking great but our bank account's zero.”
#cash flow#inventory#financial planning
❝Story· 8
❝Story01:30
Plunge's First Sale Arrived Within an Hour
The founders switched on a new Shopify store while operating from a garage, with no active marketing. A customer bought a roughly $4,000 cold plunge within the first hour, which they treated as an encouraging demand signal rather than proof of a giant company.
The first sale arrived with no marketing
The product cost roughly $4,000
The founders interpreted the order as an early signal, not a guaranteed outcome
“We have a sale in the first like hour. No marketing.”
#validation#early sales#bootstrapping
❝Story07:00
How One Sold Unit Funded Parts for the Next Two
During the first few months, Plunge used customer payments and a six-to-eight-week lead time to expand production incrementally. The founders bought parts for one unit, sold it, then used the proceeds to buy enough parts for two, while assembling and delivering products themselves.
The business began in a garage with no advertising costs
Customer payments funded the next small batch of parts
A six-to-eight-week lead time constrained the pace
The founders handled assembly and local delivery
“put the money in to buy enough for one we'd sell that one”
#bootstrapping#preorders#production
❝Story12:30
Plunge Evolved from Amazon Parts to Owning Its Tooling
Plunge initially assembled products from readily available components, including parts bought on Amazon and tubs sourced from a nearby importer. A Chinese supplier relationship expanded into sourcing, engineering, and a custom chiller, while final assembly and testing remained in California. The founders said full ownership of the supply chain and tooling took more than five years.
Early units used off-the-shelf components
A supplier became a broader sourcing partner
In-house and supplier engineers co-designed a custom chiller
Plunge continued assembly and testing in California
Supply-chain ownership emerged over multiple product generations
“Now we fully own the supply chain. We own every tool that is developing the product.”
#supply chain#manufacturing#product development
❝Story24:00
A $250,000 Domain Purchase Fixed Plunge's Naming Confusion
Customers and even employees often called the company The Cold Plunge because it operated on thecoldplunge.com despite branding itself as Plunge. After a long negotiation with the owner of plunge.com, the company paid $250,000 for the domain. The founders said the shorter domain, combined with obtaining the trademark, materially improved recognition of the intended brand name.
The original domain encouraged customers to use the wrong brand name
The domain was owned by a New Orleans jazz band
Negotiations moved through a domain broker
Plunge paid $250,000 after rejecting a much higher opening price
The founders linked the acquisition with clearer brand recognition
“It did flip. People would call us our actual name.”
#branding#domains#trademark
❝Story29:30
One Instagram Comment Started Plunge's Influencer Gifting Chain
Michael Garrett commented on an Instagram Live in which Aubrey Marcus was using a chest freezer, offering an upgrade. That exchange led to Plunge shipping its first unit, followed by organic introductions and gifting involving other recognizable figures. The founders said the relationships were not structured as conventional paid endorsements and that they turned the deliveries into content.
A public Instagram comment opened the first conversation
The Aubrey Marcus unit was the company's first shipment
Introductions expanded through the recipients' networks
The founders used deliveries as content opportunities
They described the Huberman relationship as unpaid and organic
“Hey, looks like you need an upgrade.”
“We never really had a paid relationship with him.”
Why Plunge's Shark Tank Handshake Never Became a Deal
The founders accepted a televised deal framework with Robert Herjavec, but described the on-air agreement as only the start of later diligence and negotiation. Communication took months to begin, Plunge's financial records were not prepared to answer every question cleanly, and contact eventually went stale. The investment never closed, although the episode and subsequent publicity still aired.
The televised handshake was not a completed investment
Formal diligence began months later through Herjavec's CFO
The founders acknowledged weaknesses in their financial records
Neither side pushed the process to completion
Plunge retained the publicity despite the deal not closing
“It's really a handshake agreement and then you obviously go off and you do diligence.”
#shark tank#fundraising#due diligence
❝Story45:30
Dancing Helped Michael Garrett Recover Before the Shark Tank Pitch
Immediately before the Shark Tank doors opened, Michael Garrett said his mind went blank and he could not recall the rehearsed lines. He started dancing, told himself to have fun, and hugged his co-founder. He reported that his ability to think returned before they walked onto the set.
Garrett experienced a sudden memory blank before the pitch
His instinct was to move rather than keep rehearsing
He reframed the moment around having fun
He said the rehearsed material returned before the doors opened
“Dude, just have fun. Just don't worry. Just have fun.”
#performance pressure#shark tank#founder story
❝Story56:00
Plunge Raised $1.3 Million from Its Customer Community
After an earlier small financing from customers and other brand contacts, Plunge opened a community round on Wefunder in 2025. The host stated that it raised $1.3 million in under two weeks; the founders described the round as a way to involve engaged customers, tell the company's story publicly, and reconnect with accounts of how people used the product.
The idea of customer ownership predated the formal round
Plunge used Wefunder for the community campaign
The host reported $1.3 million raised in less than two weeks
Investors could comment and share their customer stories
The founders said administering many investors required substantial work
“This is the ultimate way to kind of engage our customer base.”
#crowdfunding#community#equity
▲Takeaway· 2
▲Takeaway18:30
Fast Practical Hiring Left an Operations Leadership Gap
As orders grew, the founders hired for immediate tasks such as building units, answering phones, packaging, and shipping. Looking back, they believe they waited too long to hire an experienced operations leader who could install scalable systems instead of relying on improvised spreadsheets.
Early roles solved the most visible daily bottlenecks
The founders did not forecast how large the company might become
Order management initially relied on improvised processes
Experienced operations leadership arrived later than they wanted
“We didn't think big enough into the hires we should have gone and made”
#hiring#operations#scaling
▲Takeaway32:30
Plunge Says Long Lead Times Cost an Estimated $20 Million
Plunge relied on long lead times while demand repeatedly exceeded forecasts, then made a major effort in 2023 to hold finished inventory. The founders said an internal marketing-mix study estimated that historical lead times had cost about $20 million in sales. They framed faster availability as both a conversion advantage and a source of better shipping economics, while acknowledging the added cash-flow burden of inventory.
Sales repeatedly outpaced forecasts and preserved the backlog
The company pushed toward stocked inventory in 2023
The founders attributed the $20 million estimate to a company study
They observed an impact when delivery exceeded roughly two weeks
Holding stock increased cash-flow complexity
“We did an MM study that showed we had lost what like was it like $20 million of sales”