How I scaled my e-commerce business to $9,344,047 in sales in just over 1 year at 20 years old... then lost it all, so you donโt have to...
Here are the hard lessons I learned on this journey.
A ๐งต
Here are the hard lessons I learned on this journey.
A ๐งต
I am sitting right now in a coffee shop writing this, sipping a hot drip coffee reflecting on how things got to this point.
Going to preface this by sharing that this journey was absolutely wild. I went from doing $0 to $2,000,000 / month in 3 months, then back almost down to nothing in such a short amount of time. Still taking inventory of the lessons.
During this time I was 19 years old turning 20 years old, and I did not know how to interpret this change. Below is a combination of both the business / personal lessons.
My goal with this is to share some of the mistakes I have made, so others don't go through what I did.
These lessons are in no particular order. I also sprinkle some book recommendations that have helped me identify some of these problems / lessons, and navigate them for the future.
"Thereโs nothing that produces wisdom more thoroughly than really getting your own nose whacked hard when you make a mistake, and we had a firm amount of that." Charlie Munger
1. KNOW YOUR NUMBERS
Most entrepreneurs do what most will call "bank balance accounting".
Understand your P&L, cash flow statement, Balance Sheet.
You may be rolling your eyes right now by how simple this is, but looking at your bank balance or ROAS is not the way...
Most entrepreneurs do what most will call "bank balance accounting".
Understand your P&L, cash flow statement, Balance Sheet.
You may be rolling your eyes right now by how simple this is, but looking at your bank balance or ROAS is not the way...
The mistake I made here was that I was so naively optimistic and rarely took the time to comb over the REAL financial statements.
I didn't realize the business was losing so much.
โRevenue is vanity, Profit is sanity, and Cash is kingโ
Book Rec:
Profit First - Mike Michalowicz
I didn't realize the business was losing so much.
โRevenue is vanity, Profit is sanity, and Cash is kingโ
Book Rec:
Profit First - Mike Michalowicz
2. PAY ATTENTION TO YOUR OPEX
Operating expenses can sneak up so quickly on you. This software here, this subscription there.
Don't let it.
"It's only when the tide goes out that you learn who has been swimming naked."
Operating expenses can sneak up so quickly on you. This software here, this subscription there.
Don't let it.
"It's only when the tide goes out that you learn who has been swimming naked."
The mistake I made was that I let our opex get way too high relative to our revenue. When revenue dropped, I did not cut opex fast enough, until it hurt.
To save yourself, check out @TaylorHoliday and his 4 quarters accounting breakdown here: youtube.com
To save yourself, check out @TaylorHoliday and his 4 quarters accounting breakdown here: youtube.com
@TaylorHoliday 3. NEVER DO 50/50 PARTNERSHIPS
Do you every see 2 CEOs of any major companies?
That's right, it's because it doesn't work.
When entering a partnership, ask yourself:
- What experience does each person bring to the table?
- What capital does each person bring to the table?
Do you every see 2 CEOs of any major companies?
That's right, it's because it doesn't work.
When entering a partnership, ask yourself:
- What experience does each person bring to the table?
- What capital does each person bring to the table?
@TaylorHoliday My mistake was something I will never make again.
In my biz partnership but there was no clear chain of command. Who has final say.
When it came to making big decisions, no one stood up because this was not clearly defined beforehand.
Book Rec: Extreme Ownership - Jocko
In my biz partnership but there was no clear chain of command. Who has final say.
When it came to making big decisions, no one stood up because this was not clearly defined beforehand.
Book Rec: Extreme Ownership - Jocko
@TaylorHoliday 4. HIRE SLOW, FIRE FAST
I made the mistake of hiring on the wrong people, or hiring the right people and having them in the wrong seat.
What you want:
- Right Person
- Right Seat
You could have an A-Player but they are taking on a role that is the wrong seat for them.
I made the mistake of hiring on the wrong people, or hiring the right people and having them in the wrong seat.
What you want:
- Right Person
- Right Seat
You could have an A-Player but they are taking on a role that is the wrong seat for them.
@TaylorHoliday My mistake here was that I hired some of the wrong people.
I unfortunately paid the hefty 6-figure price for this. Money, energy and time down the drain.
Book Rec: Traction - Gino Wickman
I unfortunately paid the hefty 6-figure price for this. Money, energy and time down the drain.
Book Rec: Traction - Gino Wickman
@TaylorHoliday 5. BE QUICK TO PIVOT
Now more than ever, the e-commerce industry is changing fast.
The business's that grow and survive are the ones that can pivot to a new ad platform, strategy, or quickly & aggressively test new offers / products.
Now more than ever, the e-commerce industry is changing fast.
The business's that grow and survive are the ones that can pivot to a new ad platform, strategy, or quickly & aggressively test new offers / products.
@TaylorHoliday My mistake here was that I stayed complacent.
I did not make big enough pivots to save the business. And kept doing generally the same thing over and over again, just because it worked in the past.
That's the definition of insane.
I did not make big enough pivots to save the business. And kept doing generally the same thing over and over again, just because it worked in the past.
That's the definition of insane.
@TaylorHoliday 6. BUILD TO SELL
Did you know, for most businesses, and especially e-commerce business's... 50% or more of all the money you'll ever make will come on the day you sell your business?
Build your business with hopes of it thriving for decades.
Did you know, for most businesses, and especially e-commerce business's... 50% or more of all the money you'll ever make will come on the day you sell your business?
Build your business with hopes of it thriving for decades.
@TaylorHoliday My mistake was that I did not have this in mind when I started this business.
Our customers experience was subpar, business didn't have a clear moat.
Had I built this with the intention to sell, would have done things differently.
Book Rec: Built To Sell - John Warrillow
Our customers experience was subpar, business didn't have a clear moat.
Had I built this with the intention to sell, would have done things differently.
Book Rec: Built To Sell - John Warrillow
@TaylorHoliday 7. SYSTEMATIZE EVERYTHING
If you took a 3 week vacation, would your business still be running?
As a business owner, if you're doing repetitive tasks like this, you don't have a business. You have a hustle.
If you took a 3 week vacation, would your business still be running?
As a business owner, if you're doing repetitive tasks like this, you don't have a business. You have a hustle.
@TaylorHoliday My mistake was that, I was doing stuff that could have been passed off to my team, but I refused to let it go.
And the other areas of the business suffered.
Build systems for ALL task that you are repeatedly doing.
Book Rec: The E-Myth Revisited - Michael Gerber
And the other areas of the business suffered.
Build systems for ALL task that you are repeatedly doing.
Book Rec: The E-Myth Revisited - Michael Gerber
@TaylorHoliday 8. HAVE A VISION, MISSION, VALUES
Why do you exist in the marketplace?
It's one thing to get front end sales or "impulse" purchases, but it's another thing to have loyal customers that come back.
This is the difference between a $1MM / year business and $100MM / year business.
Why do you exist in the marketplace?
It's one thing to get front end sales or "impulse" purchases, but it's another thing to have loyal customers that come back.
This is the difference between a $1MM / year business and $100MM / year business.
@TaylorHoliday My mistake was that this e-commerce business was no more than a vehicle for me to make money.
Beyond that, there was no true reason why we existed.
Consumers can smell this from a mile away; hence our repeat purchase % suffered.
Book Rec: Building A Story Brand - Donald Miller
Beyond that, there was no true reason why we existed.
Consumers can smell this from a mile away; hence our repeat purchase % suffered.
Book Rec: Building A Story Brand - Donald Miller
@TaylorHoliday 9. DIVERSIFY TRAFFIC CHANNELS
It's so much easier said than done.
If your Facebook or TikTok ads stopped running today, would you still be generating revenue?
My mistake was that my business relied way too heavily on Facebook ads for front end purchases.
It's so much easier said than done.
If your Facebook or TikTok ads stopped running today, would you still be generating revenue?
My mistake was that my business relied way too heavily on Facebook ads for front end purchases.
@TaylorHoliday My mistake was that we were basically slaves to the FB algorithm, and did not pivot away from that.
At the same time, don't chase the next shiny object or platform.
Your customers are all over the internet, not just Facebook or Tiktok:
- Blogs
- Youtube
- Pinterest
- Podcasts
At the same time, don't chase the next shiny object or platform.
Your customers are all over the internet, not just Facebook or Tiktok:
- Blogs
- Youtube
- Podcasts
@TaylorHoliday 10. START WITH VALUE FIRST
What value do you provide to your consumer?
The second you try to take before you give, is the moment you will spiral out.
What value do you provide to your consumer?
The second you try to take before you give, is the moment you will spiral out.
@TaylorHoliday My mistake I made was that I stopped focusing on the customer first, and was too caught up in the numbers. Value first -> profit is a bi-product.
Book Rec: "The Go-Giver" Bob Burg
Book Rec: "The Go-Giver" Bob Burg
@TaylorHoliday 11. DON'T LET YOUR EGO GET TO YOU
This is the single most important thing for your mental game. It always finds a way to creep up on you in some way.
Be humbly confident.
Once your ego shows his face, that is the moment you start to slip off your game. It happens every time
This is the single most important thing for your mental game. It always finds a way to creep up on you in some way.
Be humbly confident.
Once your ego shows his face, that is the moment you start to slip off your game. It happens every time
@TaylorHoliday My mistake here was that I thought I was way farther along than I actually was.
My ego got inflated and I thought that everything I'd touch would turn to gold. That was absolutely not the case.
Life has a great way of humbling you.
Book Rec: Ego is the Enemy - Ryan Holiday
My ego got inflated and I thought that everything I'd touch would turn to gold. That was absolutely not the case.
Life has a great way of humbling you.
Book Rec: Ego is the Enemy - Ryan Holiday
@TaylorHoliday Of course there is more to this story than this.
I am an open book. So if you're looking for the raw truths, and transparent advice backed by REAL experience, I will share.
How I did it,
What Iโve learned,
Where Iโm at now,
Where I'm going.
I am an open book. So if you're looking for the raw truths, and transparent advice backed by REAL experience, I will share.
How I did it,
What Iโve learned,
Where Iโm at now,
Where I'm going.
@TaylorHoliday Thatโll all be explained in upcoming threads
If you liked this thread:
1. Follow me
@evanjohansen_ for more
2. RT the tweet below to pay it forward
If this helped just one person, I am a happy man.
- Evan
Shoutout to @EcomSimo for inspiring me to share this.
If you liked this thread:
1. Follow me
@evanjohansen_ for more
2. RT the tweet below to pay it forward
If this helped just one person, I am a happy man.
- Evan
Shoutout to @EcomSimo for inspiring me to share this.
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