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The Knowledge Project with Shane Parrish

#215 David Heacock: Managing and Marketing a $250M Business

The Knowledge Project with Shane Parrish

Farnam Street

Business, Investing, Entrepreneurship

4.7 • 2.9K Ratings

🗓️ 18 February 2025

⏱️ 120 minutes

🧾️ Download transcript

Summary

Imagine leaving a six‐figure Wall Street salary behind to chase a single, daring idea. In this episode, David Heacock shows you how he turned a basic product into a $250M empire. At 29, he left Wall Street to bet on air filters. That bet transformed into Filterbuy, now a $250 million direct-to-consumer manufacturer serving more than 7 million customers through a ruthlessly efficient operation. Today we talk about what actually matters when building a business, balancing obsession with family life, selling on Amazon, what he’d do differently if starting over, and the freight decision he calls his biggest mistake. Whether you’re starting a business, scaling one, or simply looking for insights on hiring, managing, or making bold decisions, David shares the lessons that helped him build his empire.    David Heacock is the founder and CEO of Filterbuy. Before revolutionizing the air filter industry, he traded options at Goldman Sachs from 2005-2012.  If you’re driven by bold decisions and value hard-won lessons, this conversation is your playbook. Don’t miss out on the insights that could redefine your own path to success. Newsletter - The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at fs.blog/newsletter Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠fs.blog/membership⁠⁠ and get your own private feed. Watch on YouTube: @tkppodcast (00:02:56) David's Journey to Goldman Sachs  (00:06:07) Committing to Entrepreneurship  (00:07:35) The Power of Obsession  (00:10:08) The Decision to Expand Geographically  (00:12:55) Challenges in Building the First Plant  (00:18:58) Management Level Hiring  (00:22:41) Studying Operating Systems for Companies  (00:24:49) The Nuances of Hiring  (00:25:53) External Accountability  (00:29:37) Adapting Business Operating Systems  (00:30:13) The Role of a Chief of Staff  (00:31:03) Building Department-Specific Operating Models  (00:32:56) Articulating the Company's Mission and Values  (00:44:19) Understanding Marketing and Branding  (00:47:10) The Strategy Behind Intent-Based Marketing  (00:52:13) The Decision to Enter Retail  (00:57:26) Success in Retail and Customer Acquisition  (00:58:19) Diversifying Market Segments  (00:59:13) Competitive Advantage Over Other Brands  (01:01:07) The Logistics Aspect of the Business  (01:04:25) Defining Direct-to-Consumer Brands  (01:08:39) Technical Challenges and Overcoming Setbacks  (01:11:46) Core Personal Traits for Success  (01:16:37) The Power of Obsession Over Willpower  (01:17:46) Facing the Hardest Moments in Business  (01:26:36) The Decision to Enter the Freight Business  (01:30:48) Diversifying into the HVAC Service Business  (01:34:51) The Future of HVAC Service Business  (01:36:01) Personal Branding and Business Growth  (01:37:23) The Role of Marketing and Operations  (01:38:48) Contrasting Business Models: Private Equity  (01:43:00) The Importance of Mission and Vision  (01:47:12) Balancing Obsession and Family Life  (01:53:44) The Dangers of Lifestyle Creep and Maintaining Financial Stability  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

I like to think about what am I going to be thinking about on my deathbed.

0:04.6

And I know for me the things I will regret are things that I did not try or that I knew I could have done or thought I could have done if only I put in more effort or things that I didn't do because I was fearful.

0:18.8

Those are the things that I'm going to regret.

0:20.3

It's not going to be the times where I make a mistake. And so for me, there is no other option, but to see how big

0:26.3

of an impact I can have. I'm on a mission to build the world's leading indoor air quality company.

0:30.6

I've scaled from zero to $250 million a year. And in the next five to ten years, I intend to

0:36.2

take that to a billion dollars plus.

0:38.0

And I wake up every single day, you know, working on my business and thinking about how I'm going to grow it and ultimately build out my vision.

1:02.5

Welcome to the Knowledge Project. I'm your host, Shane Parrish. In a world where knowledge is power,

1:07.1

this podcast is your toolkit for mastering the best of what other people have already figured out. If you want to take your learning the next level, consider joining our membership

1:10.8

program at fs.blog slash membership. As a member, you'll get my personal reflections at the end

1:16.8

of every episode, early access to episodes, no ads, including this, exclusive content, hand-edited

1:23.8

transcripts, and so much more. Check out the link in the show notes for more.

1:27.9

Today, I'm talking with David Hickok,

1:30.1

who left his Wall Street career to build a business selling air filters.

1:34.6

What sounds like an unlikely bet has become filtered by,

1:38.2

a $250 million manufacturing company producing over 100,000 filters daily and serving more than

1:46.5

seven million customers. David shares the real story behind his empire, walking away from Wall

1:52.1

Street, constructing his first plant, navigating Amazon, and even the freight decision, he now

1:57.9

calls his biggest mistake. No startup platitudes, just hard-earned lessons from

2:03.2

someone who's been in the trenches. We dig into what actually matters in building a business,

2:08.5

hiring, managing at scale, branding versus marketing, why many direct-to-consumer brands aren't

...

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