What Can Entrepreneurs Learn From Home Depot’s Acquisition of Blinds.com?
When Jay Steinfeld launched Blinds.com in 1993 with just $3,000 and a simple online presence, he couldn’t have known it would grow into a $100 million e-commerce powerhouse. But two decades later, Home Depot acquired the company in a deal that stands out as one of the smartest exits in online retail.
So, what made Blinds.com such an attractive target? And what can entrepreneurs learn from Steinfeld’s success story? Here are five lessons from Blinds.com’s acquisition by Home Depot.
1. Win the “Make vs. Buy” Battle
When large companies see competitors gaining traction, they often face a make-or-buy decision: should they build their own version, or acquire the competitor outright?
Blinds.com had carved out such a dominant position in its niche that recreating its success would have been costly and time-consuming for Home Depot. With more than $100 million in revenue, Blinds.com was already the largest online blinds retailer in America, outperforming much bigger players in its category.
Lesson: If your business becomes the clear leader in a specialized niche, acquisition becomes easier—and smarter—choice for potential buyers.
2. Run Your Company Like It’s Public
Even though Blinds.com had just 175 employees at the time of the sale, Steinfeld operated the company as if it were already publicly traded. He:
- Built a strong executive team
- Created an independent board of directors
- Held quarterly board meetings with formal presentations
- Invested in annual audits by a Big Four accounting firm
This professional structure gave Home Depot confidence and allowed the acquisition to move forward quickly.
Lesson: Running your company with transparency, structure, and accountability increases trust—and makes you acquisition-ready.
3. Retain Control of Your Equity
Unlike many tech start-ups, Steinfeld didn’t raise multiple rounds of venture capital. Instead, he relied on personal investment, small contributions from friends and family, and bank loans to fuel growth. By doing so, he avoided significant dilution and kept majority ownership.
It wasn’t until nearly 20 years later that he accepted private equity investment—and even then, only enough to buy out a few early investors and reduce debt.
Lesson: Retaining equity puts you in control of your company’s future and ensures a bigger payday when it’s time to sell.
4. Keep Investors Aligned with Your Vision
Steinfeld’s early investors wanted to cash out profits through dividends, but he prioritized reinvesting growth—about 25% annually. When their expectations were no longer aligned, he bought them out with private equity support.
Lesson: Misaligned investors can stall your growth or push you in the wrong direction. Choosing the right financial partners—and keeping everyone aligned—protects your long-term vision.
5. Share the Rewards with Your Team
When the deal closed, Steinfeld made sure his team benefited. Every employee held stock options, and on top of that, he personally gave each of his 175 staff members $2,000 to start an investment account.
Lesson: Sharing success builds loyalty, morale, and legacy. Your employees are key contributors to your company’s growth—make sure they share the rewards.
Final Thoughts
The Home Depot–Blinds.com deal is more than just a story of financial success—it’s a blueprint for entrepreneurs looking to build businesses that attract the right kind of buyers. From dominating your niche to maintaining investor alignment, the lessons are clear: prepare your business as if a buyer could come knocking any day.
If you’re considering selling your company or want to know what it’s worth, now is the time to start planning. Position your business strategically, and you could be setting yourself up for a truly spectacular exit.