"What would you do if you had to start over today?"
It's a question I get frequently. And while many of my recent episodes are about more advanced topics, I wanted this episode to be a bit different. In this episode of The eCommerce Lifestyle podcast, I'll share what I would do if I was starting over today.
To make things interesting, I'm adding a few constraints:
1) I maintain my industry knowledge.
2) I lose all of my connections.
3) I have a budget of $5,000 USD.
4) And I need to be profitable within 30 days.
Listen in to hear how I'd start over, knowing what I know now...
What's up everybody, Anton Kraly here and welcome back to the eCommerce Lifestyle Podcast. So on the previous episodes, the most recent ones I've been spending a lot of time talking about more advanced things. Things that make sense and topics that make sense for people that are up and running and building online stores.
So some examples are when I talked about a whole five-part series for how to bolt on new revenue streams to your online store. Did recent episodes about Facebook ads and how we set ours up, how we structure our ad accounts. Also just did one very recently about how to successfully run promotions that are timed based. And that's the stuff that I really do enjoy talking about because it's what we're doing day to day. So it just is the most, the top of mind, the most relevant. But I wanted to make a different type of episode today.
And the reason is because one of the questions I get almost every single day is what would I do if I was just starting, right? If I was just starting a brand new store, what would I do? How would I approach business? So I'm going to answer that. But what I wanted to do is put constraints on this question because I want to answer it in a way that's going to best serve you. And I know the reason people are usually asking is that they want to know what they should do.
So I'm going to put a few constraints on this question. The first is going to be assuming if I was starting over, I still know everything that I know now, so I wouldn't lose any of my knowledge from being in this business for over a decade. I'll also make another constraint here that I lost all of my connections, so I couldn't just call up the suppliers that I have a decade long relationship or anything like that.
I couldn't call my Facebook rep. So let's assume I lost all of my connections. Let's also assume that I had $5,000 to invest into the business. So we'll just put a fixed number on it. My budget is 5K, got to make it work. And also let's say that I need it to generate net profit. So actually make money out of this thing within 30 days. Okay. So if I was starting over, what would I do?
Well, the first thing is probably pretty obvious is I'm going to build a business using dropshipping, not just any type of dropshipping, but specifically using the Drop Ship Lifestyle business model. Because remember, I keep my knowledge and I know that that is where it's the easiest to start for a small amount of money and get a big upside return. So what am I going to do in this 30 day period with my $5,000 to make sure I'm making money?
Well, the first thing is obviously I need to choose a niche. I need to choose something to sell. Now I'm not just going to throw a product at you because I'd rather give you the criteria. So again, this can help you. Some things I'm going to look for, especially if I'm starting from nothing and I know what I know is I'm going super high end in price.
I want my average order value for my niche and on my Shopify store to be $2,000 or more. Yes, you can make money selling products that are less expensive than that, but I'm willing to do the work. I want to make this happen fast, so I'm going to go average order value $2,000 or more. Some other things I'm going to make sure is the niche that I get into has no brand loyalty. So I'm not going to try to dropship iPads when no one would ever find me and buy it from me.
I'm going to sell things that people don't really care where it comes from and what brand name is on the box. I'm also going to make sure that the niche I choose is not seasonal because right now you know we're going into winter. I don't want to choose something that's not going to make me money until next spring rolls around.
So I'm going to make sure a seasonality is not an issue. If I see it seasonal, I'm not going to do that one. I'm also going to make sure there's demand and whatever I'm going to be selling. So I'm just simply going to go onto Google Keyword Planner. I'm going to type in the niche I'm thinking of and I'm going to make sure enough people are searching for this thing every single month so that if I put in the work to build a store, they're actually going to buy from me.
And then finally I'm going to make sure when I'm choosing my niche that it is dropship-friendly. And what I mean by that is I want to make sure there's other online stores out there that are selling the thing that I want to sell and I want to make sure that they don't have their own warehouse or showroom or anything. I want to make sure that they're dropshipping because then I know I can move forward.
So that's the first thing I'm going to do. It's not even going to take me more than a day. And the grand total, they're out of my $5,000 budget is $0 million because I'm using free tools and I'm going on Google and just using my mind. So step one, choose that niche cost me no money at all.
Now, step two is where I'm going to start to put some of my $5,000 budget to work. Because in step two I'm going to get a store built. I'm going to build that store on Shopify and I'm not going to do it myself if I have $5,000 because I know I am not a design person and I know it would be well worth the investment to have a professional build it for me so that I don't need to spend a month learning how to do everything and trying to figure out how to make it look good. Instead I can have a website that looks great within a few days.
Now, I said I wouldn't have my connections anymore in this example, but still I would assume Drop Ship Lifestyle is still a company and I would hire our web design service to build the site for me. Have one of our designers build the site. It costs just under $1,300. It's 1297 so that's the first money I'm investing. But again, I'm doing that because I don't want to spend a month tweaking with design to get it to look just right.
I want it done now in about two days. So that's $1,300 in my budget, let's call it. Okay, next thing I'm going to do as the store is being built, I'm going to get the apps installed that I need to be able to start communicating with people, converting visitors into sales sooner rather than later.
So I'm going to get live chat put on my website. Of course I'm going to do a free trial, but I'm going to set that up. I'm going to have it on my phone so I can communicate with people in real time. I'm going to get my toll free numbers set up. I'm going to have that forwarded to my cell phone.
So whenever people are calling, I am there to answer to take their questions, to take their order, whatever they need. So I have that expense. I'm also going to set up G Suite, so on Google I'm going to do that so I could have all of our emails looking professional, everything going into one inbox, super easy to manage.
I'm going to do that while that website is being set up and I'm also going to do an EIN number. I'm going to register for that online, so I have a official business number and I'm going to set up an LLC in about 24 hours. You can get this done. We offer it for free through Drop Ship Lifestyle, but again, assume don't have these connections.
Let's say $200 between phone number, apps, LLC, EIN number. I'm at about $1,500 here and maybe five days into the process. Okay, so have $3,500 left still. Now what am I going to do next? Well, the third step is I am going to start getting suppliers. Remember at this point my website is set up. I have my LLC, I have my EIN, which by the way, they're not necessary, but if I have five grand, I'm going to set that up first.
I'm also going to start calling suppliers. I'm going to get approved with everyone as fast as I can. When they say, hey, we can send you over the supplier approval form. I'm going to say, great, can you send it now? I'll let you know when I get it. I'm going to get it. I'm going to fill it out. I'm going to send it back and I'm going to do this nonstop till I get every supplier I could possibly get in my new niche.
Now step four is where I may or may not start outsourcing, and step four is what I'm going to get the products from my new suppliers uploaded to my website. And if I only have, let's say 20 suppliers and 100 products, I'm going to do it myself because it's not that difficult and it would be more work to show somebody how to do it right.
But if when I'm getting approved with suppliers, I end up picking up a product catalog with 3000 different products, then I'm going to outsource product uploads to have it happen faster. Because remember, I'm giving myself a 30 day limit here. And to do that, let's just call it averaged $300, I'd be spending on virtual assistants to upload my products for me.
Again, that might be an expense. It might not. It depends on how many products I have to work with and how fast I want to move, but let's just say we spent our 1500 already plus that 300 so we've spent $1,800 I should say at this point, we're probably about maybe 15 days into the whole process and I have $3,200 left. I have $3,200 what am I going to do with that? It's going towards, you guessed it, paid traffic, because that is the quickest way that I know how to double and quadruple my money in a very, very short amount of time.
Now, I'm not going to go crazy and take my $3,200 and throw it at Google on day one and say, here you go. Let's see what happens. No, I'm going to set it up so that I'm spending $100 a day. That's going to be my budget. $100 a day on Google shopping ads.
Remember, everything I'm selling average is going to be over $2,000. If I have products that are less expensive, I'm going to exclude them from my Google shopping campaign and I'm only going to focus on those high, high, high ticket ones because that's where I'm going to make the most amount of money the fastest. So I'm going to have $100 a day going that budget, and then I'm going to set up a simple Facebook remarketing campaign where my budget is $10 a day. So again, I have $3,200 I have $100 a day going on Google.
I got $10 a day going on Facebook for remarketing only. That's enough to last me 29 days of ad costs. Even if I made zero sales. But here's the thing, I would fully expect to be making sales within a few days because I'd have enough traffic. My website would be set up, I would have optimized it and as data starts coming in from my Google ads, guess what I'm going to do?
Every 48 hours, I'm going to be inside of my Google ads account. I'm going to be looking at what keywords are triggering my ads. I'm going to be making the bad ones or the broad ones, negative keywords, and I'm going to be raising my bids on the ones that are most profitable. So that's why I'm not going to go crazy and tell Google, hey, spend 500 bucks a day.
Instead, I would rather start with a small budget, relatively small compared to the amount I'm willing to invest, gather that data, optimize every day, and by the end of that first 30 days, I should have a very profitable store with money leftover in the bank.
So a couple things to take away. Okay? Just because I had that five grand budget, I did not spend it as fast as possible. In fact, I would still have about $1,500 left at the end of 30 days, which would be going into ads. A few other things that I should note because they are important is that I would also, by the time my store was set up, I would have abandoned cart emails set up.
So when people started to buy and they didn't finish buying, they would be getting emails, sending them back to complete the order. I would also be calling every single person that abandoned their cart. I would be emailing them like I mentioned, and everybody that bought from me, every sale that came in during this period, I would be calling those people as soon as they bought, thanking them for their order, asking them how they found us, asking them why they chose us, and then based on that conversation that I had with them, I would then be going back to our website and updating it to make it speak even more to the customers that I'm already getting.
Again, that's what I would do if I had a $5,000 budget. That's what I would do if I knew what I know, don't have any connections and want it to be profitable within 30 days. Also, I would be using the free coupon codes that we can get you for Google, for Bing, for Facebook, which is about $300 of free ads, so I would have that on my side as well.
And yeah, again, I would fully expect this to be profitable within at least a few days of it being live, within the 30 days following that. We're off to the races, but that's what I would do if I was starting over guys. I think it's the best use of money and of time. Let me know if you like this episode. I could do another one of like what I would do if I was starting over with maybe 1000 bucks or less, but if I had five grand, that would be my plan.
If you want to know more about this and you're not part of my community, at Drop Ship Lifestyle, definitely go to dropshipwebinar.com D-R-O-P-S-H-I-P.webinar.com. I have a training there that takes you through the process, shows you how you could build your own highly profitable semi-automated store.
So hope you enjoyed this one guys. As always, if you did, please do leave the podcast a review it helps out big time. And if you're watching it over on YouTube, please give a thumbs up there. So thank you, everybody. I appreciate you and I will see you at dropshipwebinar.com. Bye.
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