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🆃🅷🅴 🆂🅷🆄🆃🅳O🆆🅽 #3
- Beauty and skincare company
- In business 2 years
- $6,600,000 customer base
- 15,000+ customer mailing LIST
And it STILL failed... how?
Let's take a look
- Beauty and skincare company
- In business 2 years
- $6,600,000 customer base
- 15,000+ customer mailing LIST
And it STILL failed... how?
Let's take a look
Key Takeaways : (summary)
1. CAPITALISE: use everything you have
2. ANTIFRAGILE: generate income no matter what
3. If it ain't broken, don't fix it
4. The tree is more important than the branch
1. CAPITALISE: use everything you have
2. ANTIFRAGILE: generate income no matter what
3. If it ain't broken, don't fix it
4. The tree is more important than the branch
So what went wrong? (summary)
1. Money out > money in
2. Sticking with a failing game plan
3. Trading loss with increasing tax debt?!
4. Rebranding
15,000 customer list and still not enough sales?
1. Money out > money in
2. Sticking with a failing game plan
3. Trading loss with increasing tax debt?!
4. Rebranding
15,000 customer list and still not enough sales?
1. Money out > money in
It was more like a couple hundred customers... they didn't actually use the customer LIST.
Costs were HIGH. The director individually paid the $15k monthly rent for 2 years before deciding it was enough.
It was more like a couple hundred customers... they didn't actually use the customer LIST.
Costs were HIGH. The director individually paid the $15k monthly rent for 2 years before deciding it was enough.
SOLUTION: Be antifragile.
If the sink in the store explodes and maintenance keeps you closed for a day, how will income be generated?
USE the mailing list and bring customers who already purchased back to spend. Easy.
If the sink in the store explodes and maintenance keeps you closed for a day, how will income be generated?
USE the mailing list and bring customers who already purchased back to spend. Easy.
2. Sticking with a failing game plan.
Cutting costs just led to worse service, which led to lower and lower sales.
This took two years to actually notice the delusion
Cutting costs just led to worse service, which led to lower and lower sales.
This took two years to actually notice the delusion
SOLUTION: If nothing improves, switch things up.
Saying it will improve in the future is saying you plan to fail.
Just cutting costs isn't going to magically bring more customers through the door.
Only exposure can do that. Market! Use your customer base.
Saying it will improve in the future is saying you plan to fail.
Just cutting costs isn't going to magically bring more customers through the door.
Only exposure can do that. Market! Use your customer base.
3. Trading loss with increasing tax debt?!
Employees are expensive. Not only do you pay them directly, but also their tax.
The business used this tax on the business and the tax man got furious.
Employees are expensive. Not only do you pay them directly, but also their tax.
The business used this tax on the business and the tax man got furious.
SOLUTION: Avoid employees as much as possible.
Outsource payroll & training if possible or, do it yourself if it's cheapest.
If you NEED them, make sure they focus only on money-in tasks.
Employees need to be tracked, make their value known.
Outsource payroll & training if possible or, do it yourself if it's cheapest.
If you NEED them, make sure they focus only on money-in tasks.
Employees need to be tracked, make their value known.
4. Rebranding
The director bought the company and brand for $600k.
But completely rebranded.
Customer trust needed to be re-built, ultimately cost the company
The director bought the company and brand for $600k.
But completely rebranded.
Customer trust needed to be re-built, ultimately cost the company
SOLUTION: use everything you have to your advantage.
It may not be part of your vision, but it will definitely be useful in getting there.
Is rebranding worth the loss off customers? Most of the time never.
FIN
It may not be part of your vision, but it will definitely be useful in getting there.
Is rebranding worth the loss off customers? Most of the time never.
FIN
Thanks for reading!
Please RT so others can apply these life lessons
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Comment with your thoughts and questions
Please RT so others can apply these life lessons
&
Comment with your thoughts and questions
