Meet Sara Blakely, billionaire who started Spanx with just $5,000 from selling fax machines, built it without a single investor, know her journey

Sara Blakely is an American businesswoman and philanthropist. She is the founder of Spanx, which sells undergarments, leggings and apparel. Well, many people still don't know her struggles and real life story. She once sold fax machines to build Spanx with a simple clothing problem and $5,000 in savings. She turned one small idea into a successful business. Notably, she didn't take help from anyone to build the business.

How did she come up with the idea of Spanx?

Before launching Spanx, Blakely used to work as a salesperson for Danka, a company that sold fax machines. During that time, she faced a clothing problem, as she wanted to wear cream-coloured pants but didn't want visible lines from her undergarments.

Blakely was getting ready for a party, and then she cut the feet off a pair of control-top pantyhose in order to wear her outfit without visible toe lines. Interestingly, the idea worked but the fabric rolled up her thighs. This became the starting point and after this the story of Spanx began, as she found a manufacturer willing to produce her prototype.

Did Sara Blakely start Spanx with $5,000?

Yes. Blakely spent seven years selling fax machines door-to-door, and after that she moved into a national sales trainer role at Danka. She was 29 in 2000, and at that time she saved $5,000 from her work.

Money from those savings was used to launch Spanx. Years after launching it, she revealed that she funded the company without the help of any investor. She also said that during Spanx's first 21 years, she did not take help from any outsider. She didn't spend the money she saved on a lavish vacation, but put that money into her business idea.

Blakely didn't just put money into the business. Initially, she handled many of the early tasks herself, which included researching, working on the patent and trademark and also filed her own patent application. According to reports, the Spanx trademark cost her $150.

How did Spanx become a successful business?

Soon after developing the product, she had to convince the retailers to sell it. She also approached department store buyers and demonstrated Spanx. Early sales eventually helped her understand how she could present the product. Notably, she had limited money for advertising and a large sales team, so she focused on getting retailers and customers to understand why the product was different.

Spanx also got a big boost after appearing on Oprah Winfrey's "Favorite Things" list in November 2000. It reported $4 million in sales during its first year and $10 million in its second year, according to media reports.

Blakely's success with Spanx eventually made her one of the most prominent self-made women entrepreneurs. Forbes named her the youngest self-made female billionaire in the world in 2012.

Meanwhile, in 2021, Blackstone bought a controlling interest in Spanx in a deal that valued the business at $1.2 billion. Notably, Blakely then became executive chairwoman, and the deal also ended her 21-year period of funding the company without outside investors. This shows how she used her sales experience, personal savings to build a business from an idea she developed while working a regular job.