Day 142
5:04 PM
Going to shut down UK store and try to scale hard on US store.
Asked for refund from supplier so I can deploy more capital to US store + hammer hard on ads.
Idea emerged partly from podcast a few days ago –
People don’t make as much money as they can… because they don’t want to.
Example given was $100k/mo biz fully autopilot, great customers, great margins.
And also $400k/mo biz but didn’t like the customers, more work, lower margins.
To make $$$ long term the solution was simple… go all in on the $100k/mo biz, invest more time + scale it up.
Kinda what’s happening here except with cashflow issues.
My UK store margins are almost identical to US store margins (since I have to pay VAT), except…
- UK customers ask for more returns/size exchanges
- UK logistics takes large up-front stock ordering to remain profitable
With US store it’s 90% less work since I don’t have to bulk order + sizes are fairly consistent.
US store:
- Scale quicker and larger (as 5x larger population than UK)
- No cashflow issues
- Less returns/size exchanges issues
- No logistics issues
If US store dies out… then I can always turn UK store back on. But I doubt it.
US store with current cashflow is making decent money.
UK store is not, since I don’t have enough stock (yet)
Only recently started doing the bulk thing so yeah.
SO anyway, if my supplier refunds me, then I should be able to deploy 100% on US store and scale fast + hard.
$5-10 profit/order pre-tax etc etc
Maybe it’s possible that I’m able to do [a lot more] orders/day once I’ve got my customer service SAAS setup + automate 90% of the stuff I do…
Will probably have to get some new designs out to maintain profitability though
Main focus still SAAS.
Capital will be re-deployed to US store as/when possible.
Scale hard. Scale fast. No limits.
EDIT: PayPal might be annoying (hold money) if I scale fast, but I’m going to do it anyway… let’s see if it backfires —
If PayPal holds are too long (60-90 days), I’ll disable PayPal on the store. Problem solved.