Rough Seas

Based on the results from the Business Assessment, it looks like your business may be facing some challenging issues. Even though it might not be smooth sailing right now, there’s usually a way to get to calmer waters.

There have been countless other businesses that have sailed these waters and found their way through.  We’d like you to meet one them.  His name is Jason

Jason's Story

“I started my business to follow my dream.  The business started out fine, but lately, we haven’t been doing that well. Sales are falling and bills are getting harder to pay. I’m spending so much time thinking about the business that it’s not as fun as it used to be.  I’m beginning to wonder if it’s time to exit.”

Jason runs a rather sizable small business and has been having a rough couple of years. Jason has been hit hard by shifting consumer behavior to purchasing items more online. Jason produces products that he sold through distributors, but that volume had dropped off. He’s tried to sell through Amazon but has had a hard time breaking through. He has his own e-commerce platform but has struggled to gain traffic and conversions

How We Helped Jason

Back to Basics

We looked at how he made or lost money, and what the biggest mistakes were behind the scenes. The first place we started was to look at his customer base. We started by talking to them. We talked to his current customers, and we talked to the past reviewers. We wanted to know why they bought, and if they weren’t buying again, why was that?

What we found:

We learned a lot. For his current target, they were happy. They didn’t mind that the product was featured online. They didn't mind going to the store. For the reviewers, the loved it at first, but when the looked for it online, they didn't find it. They just moved on.

It’s a common misconception that satisfying your customers is enough. And, that’s the first mistake that was hurting Jason. People are driven by our emotions. The people who stayed were emotionally attached. Those who wanted convenience were not. Unfortunately, his regular customers were not enough to keep the business afloat.
pain-free delegation

Staff Evaluation

Jason was great designer. His products were great. What he wasn't was a marketer. Most importantly, he wasn't a digital marketer nor a detail retail expert. He dabbled online, but was way out of his league. It was glaringly apparent that these skills were need on his management team.

Operational Review:

Jason's operations were a tight ship. It's one of the reasons he's been able to hang-on even though sales have been eroding. He had a great supplier, good inventory management, good wholesaler relationships. His digital operations were basic, and not up to the task he needed. While this hurt revenue, it wasn't a drain on expenses

Spending

Jason was spending on minimally on advertising and mostly on promotions. This worked fine with the brick and mortar distributors. It just was non-existent with e-retailers. Why? First, no one new where to find his site online. Secondly, he had no experience with Amazon Marketplace so he struggled to gain much traction.

Results of the Review:

After all of this, we came back to Jason with a plan. The great news was that Jason's product wasn’t the issue. Instead, it was his lack of marketing and e-commerce experience which was really hurting him. Unfortunately, Jason wasn't in the best financial shape to hire top talent so we had to get creative.

Jason's Turnaround Plan

We recommended the following 5 steps:

    1. Utilize an inexpensive small digital retail agency to help bridge the gap until we can hire an internal manager
    2. Have the agency properly set the business up on Amazon and help ensure the appropriate amount of the promotional spending was being executed properly.
    3. Since we couldn’t offer a high salary, we recommended a mix of equity and salary to attract e-commerce talent.
    4. Once the e-commerce lead was hired, we used the same tactic to hire the digital marketing talent.
    5. Since Jason had collateral, we were able to secure reasonable funding given his situation to help fund the agency expense and the on boarding of the new hires.

This wasn’t a easy decision for Jason. This was his baby, and the idea of sharing some equity was hard for him.  However, he understood the necessity. We could secure some funds, but we would not be able to secure the entire amount with tapping into equity.

This was a longer process, but Jason was able to turn his business around in the end.

How can we help you?

(646) 543-7804

available from 9:00 – 5:00

Address 505 W. 37th St. New York, NY 10018