How do you know when you’ve “made it”?
How do you know when it’s time to start a second store?
Anton answers these questions and more in today’s episode of the eCommerce Lifestyle Podcast.
As always, if you have any questions and suggestions, please feel free to leave a comment below. Don’t forget to share this with someone who needs to hear it.
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What's up everybody? Anton Kraly here from ecommercelifestyle.com, and welcome back to the podcast. So today, I'm going to be answering a question that actually just came up on one of our members' coaching calls for my company, Drop Ship Lifestyle. And the question, I'll read it exactly how it was phrased, so you have some context here. Let me just pull it up. It said, "What do you consider a successful store?" "We ask because it would be helpful to know when it's a good idea to start an additional store." So, I really like this question, because the answer is different for everybody. And, this is why I'm going to tell everybody that's listening to this podcast right now, if you're a member of my coaching program, Drop Ship Lifestyle, circle back to the Blueprints and go into Module 0 for my lesson on mindset and motivation.
Now, if you're not a member of Drop Ship Lifestyle, you don't have access to that, first of all, what are you doing? Go sign up. Go to dropshiplifestyle.com, and click on eCommerce courses and get enrolled. But, just know that one of the first exercises I ask of members of Drop Ship Lifestyle, is to really take time and figure out what they want out of their business. For example, are you looking to only put in 10 hours a week? Are you looking to put in 40 hours a week? Whatever it is, you need to know that though. So, know how much time you're looking to put into it, and then know what you're looking to get out of it in terms of revenue and profit. So let's just say, hypothetically, you're going through this exercise again, before you even think about product selection, and you determine that you want to get to a point where you can build a business that you only have to put in 10 hours a week into running, and you want that business to do $40,000 a month in revenue.And, you want to make $10,000 net profit a month out of that 40,000 in revenue. Let's just say those are your numbers, nice and round. Because, that way we don't have to do real math. And with that, now you have your numbers. You have your goals. So, now if you asked me the question, "How do you know if a store is successful?" Well, if those are my numbers, I would say, I know if my store is successful, if after I build it and do the upfront work, get it to a point where I can manage it in 10 hours a week, it's doing $40,000 a month or more in revenue, and I am making $10,000 a month, net profit. If that was my goal, and I got there, then I would tell you, my store is successful.
Now, the only time I would say people should think about building another store, is if their goal is to really grow this thing as big as they possibly can. They don't mind putting in more time, they actually want to actually build a team. You don't need an office, don't worry, everybody could be virtual all over the world. But if that's what you want to do, then when should you build it the second store. Because your goals are going to be a lot bigger. And, I'm not trying to talk down to the person that wants to make six figures a year versus the person that wants to make seven figures a year, because they're obviously both amazing lifestyles. And, if you can make six figures plus a year in net profit, and work 10, 15 hours a week, enjoy your life. I would never say anything bad about that. In fact, that's the whole reason I created Drop Ship Lifestyle, to help people with that type of business.
But anyway, how do you know when it might be a good time to build store number two? Well, the way that I looked at this. You first want to maximize what you have. It's always easier to build what you have than start something new, and try to get that to even match what's already there. So, some of the things that you should ask yourself, if you're starting to think, "Hey, am I tapped out?" Basically. Because the only time you would want to start store number two, is if store number one was really maxed out. If you thought you did everything you could to have that thing generating as much revenue and profit as possible, then yes. Okay, start building more to build up your total revenue, to build up your total net profit. But most people, again, by far the majority of people that ever get into e-commerce, never realized the potential of that first store because they don't do enough. They just either get lazy or they don't know, what they don't know, or they think I did everything.
But, some questions you should ask yourself. If you feel you might be literally peak performance with your store, and maxed out in terms of revenue and profit. Well, some questions I would ask you, if I was consulting with you. First off, are you approved with all of the gold, silver and suppliers in your niche? And, I don't mean, yeah, I got approved with gold and silver suppliers. I mean, are you approved to sell for every single gold and silver supplier within your niche? If not, circle back, circle back, circle back, do what you need to do to become all of their favorite online retailer.
Next question. For all of the brands you are approved with and you sell for, do you have all of their products uploaded to your store? Including their new collections that recently came out, including any product tweaks they have made. Are they all on your store? All the variants, everything they have to offer. They're not? Okay, well do that. Next question I would ask you, do you have all of your product pages optimized? And I'm not going to go through conversion optimization in this podcast. I have an entire hour plus training on it inside the Drop Ship blueprint. Actually more than that, but for members of Drop Ship Lifestyle, just go to module five, but is everything optimized for conversions? It's not? Okay. Focus on that.
Next question, and this one, I want everybody to answer honestly, but how would you rank your support? Your customer support, your live chat, phone, your email. Oh wait, you don't have a phone number. No one answers. Okay. Don't build a second store. Get somebody on that phone. So when people call wanting to buy, you could take their orders, right? Don't build store number two, put a phone number on your store and have somebody answer the thing.
Next thing I would ask you. How diversified are your traffic sources? Are you running Google Ads with remarketing on Facebook? Awesome. Amazing job. Those are huge wins, but what about everything else out there that you haven't even touched yet? Okay. Expand your traffic. Open yourself up to more potential buyers. Get more sales. On top of that, have you scaled your ad spend? Are you spending as much as you can while maintaining your target return on ad spend? If not, okay. Get to work on that. Have you created email marketing flows for all different scenarios on your store? Meaning abandoned carts, post-purchase flows, newsletters, repeat purchasers, customer winbacks. Do you have these all set up and running and being optimized? If not, okay. Get to work on that.
Are you running monthly promotions to your email list and your social audiences? Oh, you don't do that. Are you creating content for social, for your blog? Are you making buying guides? Do you have a loyal following on social? Do people actually look out for the content in your company releases? Are you objectives better than your competitors? Do you give your customers a better buying experience? Are your customers happier they chose you? Do you have a better unique selling proposition? Do you have better content than everybody else out there?
Now, listen, that's a lot of questions and I know a lot of people right now are probably listening to this and being like, wow, I have a lot of work to do. And what I would say to that is maybe you do, maybe you don't, because again, this all circles back to how I started this, which is the first question you need to ask yourself is how do you define a successful store? What do you want out of it? Because if you get into a good niche, you do your niche research. Like I teach you in module one of the blueprint, and your goal going in is, I want to get to a point where I work 10 hours a week, my store does $40,000 of revenue in a month, and that makes me $10,000 a month, net profit. Then guess what? All that stuff I just went through. You don't even need to do all of that because this is what you want to do.
The things I just listed to get to that peak level. If you do all this and you honestly do it and you believe you're better than your competitors and everything else, I just went through you know you're doing, then, okay, great. Build store number two and do it again. But for the person that you know, isn't at their target yet for that first store that hasn't done all this work that I just went through, do not go and build store number two, thinking just by doing that, you're going to reach your goals instead, focus on everything else I just went through. Plus of course, everything else I teach in the Drop Ship blueprint, get your store up to where you truly believe you're reaching your full potential, that it's running as smoothly as it can. And then yeah, build store number two and repeat the process. And if it takes stores number three and four to reach whatever it is that you decided you want out of this business, then keep going more power to you, make it happen.
But yeah, that's how I define a successful store guys, whatever I want out of it going in. And once I feel like I reached the potential, I make sure everything keeps running and we move on and build more. So hope you all found this helpful guys, if you did, I would really appreciate it. If you can go over to Apple Podcasts and leave a review, I will link up how to do that in this podcast description. And as always, if you are not subscribed to this podcast, be sure to do so. We have brand new episodes that come out every single Monday and Thursday morning, all designed to help e-commerce store owners, to increase their revenue, automate their operations and become the authority in their niche. So thank you everybody. I appreciate you. And I will talk to you in the next episode of the eCommerce Lifestyle Podcast. See everybody.