Dr. Wei-Shin Lai is the co-founder and CEO of AcousticSheep, LLC. She and her husband started the company in 2007 as a drug-free solution to common sleeping difficulties. Before AcousticSheep, she was a family doctor who would regularly receive patient phone calls in the middle of the night and found herself struggling to get back to sleep. Listening to relaxing or meditative music helped, but traditional over-the-ear headphones were way too bulky to wear in bed and earbuds were extremely uncomfortable. While searching for solutions, she found that there weren’t any headphones on the market specifically designed to be used in bed, so she and her husband decided to make their own and called them SleepPhones®. 14 years later they’ve sold well over a million pairs of SleepPhones® to customers on every continent.
What is AcousticSheep all about?
AcousticSheep’s mission is to create a world of happy, healthy, well-rested people with our comfortable headphones, allowing for easy sleep and comfortable exercise. We strive to use local resources, leverage technology and be socially and environmentally responsible as we manufacture our patented designs.
Our flagship product, SleepPhones® was developed as a solution to a personal problem I was experiencing. Taking this type of problem-solving approach has remained at the foundation of the company from the very beginning. We’ve stayed true to this philosophy by identifying needs within the sleep, health, and wellness community and developing unique and niche products to satisfy those needs.
Both of our professional backgrounds prior to starting AcousticSheep® also played a tremendous role in how we conceptualized the company and our products. We’re both naturally curious people, and having medical and technical backgrounds as we do has really helped when it comes to developing products that address the unique needs of our customers.
Tell us a little bit about your background and how you started your company?
Before I was CEO of AcousticSheep I was a family doctor. I would regularly take patient phone calls in the middle of the night, and found it extremely hard to calm myself down enough afterward to fall back asleep.
My husband (AcousticSheep® Co-Founder and Chief Technology Officer) suggested I listen to some type of meditative or soothing music to help me fall back to sleep. This helped, but the delivery method was an issue. Traditional over-the-ear headphones were too bulky to sleep in and earbuds would fall out, get tangled up, and were painful to wear for extended periods of time. While searching for a solution I realized that there weren’t any headphones available that were specifically designed for sleep, so we decided to try our hand at inventing our own.
We began working on different designs at our kitchen table in the evenings after we got home from our day jobs. My husband, a video game designer at the time, would solder the speakers while I sewed different styles of headbands. My “aha” moment came the first night we had a working prototype. I fell into a deep sleep quickly and woke up feeling incredibly refreshed. It was then that I knew we were on to something and decided to test them by selling them online.
We set up a website and before it was finished we received our first order. Since we weren’t advertising at all at that point I asked him how he’d found us. He said he’d just searched for “SleepPhones” since the name sounded fitting and we popped up! This first customer interaction really helped solidify the name of our product, so it stuck.
On top of that, initial product feedback was incredible. One lady was able to come off of sleeping pills after taking them for 10 years. Another claimed that we helped save her marriage because she could finally sleep in the same bed as her snoring husband. We knew we were on to something after hearing these success stories, so we decided to keep going.
What was the biggest problem you encountered with your business and how did you overcome it?
Over time, our success has attracted people who want to either ride our coattails or push us down. Our knockoffs are a problem, but we can also choose to view it as flattery. The best defense is a strong offense in our case. The more SleepPhones® we sell, the more we are able to insulate ourselves from knockoffs. As the originals and the best, we need to continue to innovate, releasing new and more advanced products over time. While patents and other IPs are helpful, and we have several, it doesn’t benefit the world to spend an inordinate amount of time and money paying lawyers. It’s more important to win on the business side of things and sell products to the people who want and need them. So having the best products and the best business strategy is our offensive strategy.
What were the top mistakes you made starting your business and what did you learn from it?
One of the things we’ve learned is to follow our gut rather than fully trusting “experts.” There are many people who speak very confidently and want to sell you their services. If they didn’t really listen to you when you were telling them your needs, they probably can’t really help you.
Also, never stop asking questions. Even if they might be the wrong questions, they will lead you to the right path. It’s okay to not know all the answers; that’s normal. Also, staying humble will help direct you to acquire the knowledge you need to move forward.
What are three books or courses you recommend for new entrepreneurs?
I’m constantly looking for new perspectives and sources of inspiration that I can apply to our business model. Some personal favorites are Hooked by Nir Eyal, How to Win Friends and Influence People by Dale Carnegie, Crucial Conversations by Kerry Patterson, and Good to Great by Jim Collins.
What was your first business idea and what did you do with it?
Before starting AcousticSheep, we had no prior business experience. I was a doctor, and my husband was a game developer. We were motivated to start the business because there were no similar products on the market. As a family doctor, I was able to assist ~20 patients a day. With SleepPhones®, that reach has grown exponentially. We are motivated by helping people all over the world achieve quality, restorative sleep.
What has been your most effective marketing strategy to grow your business?
Since we sell a niche, easily-shippable product, targeted online advertising has been a great fit since our beginning. This strategy coupled with constant market research helps us to identify specific demographic and community needs. For example, we’ve developed products for the ASMR, binaural beat, and meditation communities based on their individual and unique needs.
If you only had $1000 dollars to start a new startup, knowing everything you know now, how would you spend it?
I’d build 10 products and set up a simple website to sell them. After getting real customer feedback, I’d build the next ten to sell. Continuous improvement based on real customer needs is what builds a successful business.
What’s your best piece of advice for aspiring and new entrepreneurs?
Start small and keep your day job. You don’t really know how big your market will be, and you can’t be sure that you have the perfect product for the need. Whatever you can do on a small scale to prove the concept and make the first sales will critically guide your product development. Check your ego and really listen to constructive feedback to understand customer needs.
As a mother of two, I cannot always be in the office. With our internal messaging system, all internal communications are archived and I can review conversations between employees and contribute when need be. Shopify lets us sell securely to people all over the world. G Suite allows us to collaborate and share files seamlessly in real-time.
How is running a company different than what you thought it would be?
The one thing that took me by surprise was how much impact a business really has for customers as well as the greater community around the business – employees, service providers, suppliers, and local culture. Positive values emanating from a company can raise up the world more significantly than I would have imagined.
How can readers get in touch with you?
The best way to get in touch with us is through our website, sleepphones.com. Not only can you find more information regarding our company and products, but can also read our informative blog and view our YouTube videos. Our direct contact information is also on the site and our customer service team is more than happy to assist with any questions or concerns you may have. You can even contact them directly at service@acousticsheep.com! We are also on LinkedIn, Facebook, Twitter, and Instagram!
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