what to do before laughing shopify

here are the top five things to avoid,when launching your ecommerce brand,tip one not knowing your numbers this,means to make sure when you launch your,business,you understand exactly how much your,product costs you exactly how much money,you need on marketing,and to remember that acquisition cost is,going to be,the most important thing when you're in,a digital brand,acquisition cost is the cost that you,incur to acquire the customer,this means when you're spending money,digitally on facebook,instagram google snapchat or even,youtube it's how much it's costing you,to acquire that customer how much money,are you spending,to get a sale in return and if you don't,prepare for that when you're launching,your business,in your cost of goods in your shipping,then sometimes you can potentially lose,money,so this is the most important thing so,our biggest tip is when you launch your,business,start on an excel spreadsheet and have,all your costs,under each other to make sure that you,have enough margin,in your product and in your marketing,budget,so you're profitable at the end of the,day from our experience from one of our,previous e-commerce businesses we forgot,to incur,our acquisition cost we had a product,that was selling for fifty dollars,and it cost us ten dollars to ma to make,we had forty dollars,in our margins we knew that we had,thirty dollars on shipping,and we thought we're going to make ten,dollars profit on every product that we,sold at that point in time,we forgot that we had to spend money to,acquire the customer,we just thought that we're going to,launch a business put the product out,there,and we're going to make sales,unfortunately that's not how it works,and once we started to market our,product we realized it was going to cost,us,much more than ten dollars to acquire,the customer so what we had to do,in that point in time was we had to,increase the retail price of the product,and we increased it to 80 because after,testing for,months we realized it was costing us 20,to 30 to acquire the customer,tip two is making sure that your product,works it doesn't matter how good you are,of a marketer it doesn't matter how good,your branding is,if your product does not work you're not,going to grow a long term,business with any sort of longevity and,we,put a lot of effort into to preparing,the products,before we launch them to market whether,it be 12 months six months we really,don't care,we want to make sure that we're giving,people a product that they're gonna fall,in love with,because that's what creates longevity,and then you pair that with good,branding,with good marketing then you're in a,really good sweet spot for,building up something that's gonna last,you three five ten years,i'll give you guys an example the first,month we did around 120,000 and we were laughing we thought this,is great,the second month we actually scaled it,up to about 500,000 so half a million dollars in our,second month of launch we attributed,that to good marketing so,showing some before and after results,and getting some customer testimonials,and influencer testimonials,what we then found is in months three,and four is that retention rate,and our roi on facebook had dipped,significantly,and that's because people weren't happy,as well as happy as what we thought they,were with the product,and that led to a decline in sales that,led to a declining profit and ultimately,led us to lose money,so what this taught us and once these,bad reviews started surfacing we saw the,declining performance it taught us that,although those first two months were,enjoyable and we're making good money,and we're making lots of sales,that effort that we put into those first,two months kind of went to waste because,at the end we,were left with nothing ultimately so we,would rather,not be as fast-paced go a bit slower at,the start make sure we're building,something with longevity then that's,long-term,something that we can look back to after,five years and go wow we've built,something,you know that that actually stands in,the market not just a hype product,tip three is to be mindful of how many,products you launched with,we launched a layer skin with one hero,product and we built our brand around,that product,it enabled us to build a strong customer,base and database,and that way every product we launched,thereafter was a massive success,launching one product is important,because it allows you to stay focused on,just that,if you get too ahead of yourself and,decide to launch five or six products at,one time,it's extremely hard to market all those,products with success,we find that what happens in this,instance is that,some of the other products start to drop,off and now you're investing money,into stock that's just sitting there you,want to be able to move your stock as,quickly as possible,and that's why we decided just to launch,with one product,tip number four is quite simple do not,rush your launch,it's really important that you just take,the time out to really plan out the next,six to 12 months,whether it be with product development,branding customer acquisition,or and costings like what we spoke about,before james and i when we launched this,business,knew exactly which publications we,wanted to launch into once we were,you know launched on market who we,wanted to work with in terms of,influences,we had all databases ready to go for,your micro and your macro influencers,and we started preparing content early,on so when we got our sample products,we started making heaps of videos heaps,of static images,heaps of gifs for our instagram for pr,and for facebook ads,so we had all the ammunition ready for,when we launched,we just had to press go and away we went,tip number five you need to understand,every role in the business before you,delegate to anyone else number one,reason for this,is so that you can't be held for ransom,in any part of the business,the reason why this is important is,because nine months into launching a,liar skin,manny and i decided to run some snapchat,ads we realized after,12 months which is quite a long time but,it took us 12 months to realize,that we weren't actually profitable at,all on snapchat we had actually lost,a few hundred thousand dollars because,we were looking at the wrong attribution,window on snapchat,this is why making sure you understand,everything that goes on your business,before you delegate it to anyone else so,you don't experience the same disaster,that we did the way that manny and i,understand every role of our business is,even though we don't fully understand,and know exactly,how to run ads for instance we've done,heaps of tutorials online,watched youtube videos and tried to,educate ourselves as much as possible,that way when we are talking to,different agencies or we are talking to,our employees,that we have we have some sort of,understanding of what's going on,and this way we're able to at least give,our opinion give our advice,and it helps us become more efficient as,a business when the two founders know,exactly what's going on in the business,one last thing to add,is never give up we got told six months,into our business that we should,probably give up based on results but,james and i kind of looked at each other,and said that's not happening we're,gonna make it work,and we're very glad that we did so,that's the last tip,is to focus on problem solving,don't stress out and just keep pushing,forward and building your brand brand,equity is everything,and if you have a good product then,customers will eventually,return and they will purchase your,product over and over again and the,lifetime value of that customer is,extremely important,these have been the top five things to,avoid when launching an e-commerce,business,we hope you enjoyed it and we'll see you,on the next one hey guys hope you're,loving our videos and,you're getting heaps of value from them,if you are make sure to hit the like,button and make sure to subscribe to,join the founder fam,if you did enjoy this video and want to,continue to master your skills,make sure you click here to access your,free training now,we will go into way more depth with this,founder

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