I always wanted to run an e-commerce business. So, after thinking and planning for it for a few years, I finally launched it at the end of 2019. I started a premium men’s grooming brand called ENCIK. Here’s some of the raw first-hand experience I’ve learnt so far:
Lesson 1: Set Realistic Expectations & Achievable Targets
If you are a big company that started out with a bigger budget, it’s reasonable to set high targets of followers & sales within a shorter timeframe as you have the capital to spend. If you started out on a modest budget, then set your expectations accordingly. It will take time.
Lesson 2: You Have to Be REALLY Active Online
Naively, I thought posting a couple times a week was enough. Apparently, it’s not. Almost all well followed brands out there are constantly posting multiple stories and posts almost daily. I know, it sounds like overkill, but it works for a lot of brands apparently. Social media algorithm makes it such that more active accounts show up on potential customers feeds more often. So you snooze, you lose.
Lesson 3: Looking Good
You need to have a content management plan. Quality pictures, videos, stories, posts and a storyline to connect them. All this have to go out on a regular schedule. Creating good content takes skill, resources, and time. If you are doing it yourself, there is a lot to learn fast. You can leverage on free or paid tools online, or get someone to do it.
Lesson 4: Face of Brand
Some business owners use their face as the brand face / story. Others do not. Where do you fit in? Are you prepared to be out there? Putting a face and story to the brand may connect with potential customers emotionally, so it’s something to consider.
Lesson 5: Marketing Strategy
Just because you have a great product, doesn’t mean your brand will take off instantly online. There are thousands of brands already in the market, and many new ones popping up daily. Online marketing can be just as tough (if not tougher) than traditional marketing. Complement your online marketing strategy with old-fashioned offline marketing like word-of-mouth connections, pop-up booths, and business networking events
Lesson 6: Paying Your Own Bills
Building an ecommerce busines is like any normal business. It takes time. If you have a full-time job or income from another source, it’s easier to wait it out while the business grows. If the e-commerce business is your main income, you need to really hustle and make it work, or sell something that is everyone wants to buy immediately.
Lesson 7: Cashflow
Cash is king. Without it, the business dries up. Statistics online will show a lot of businesses often fail without sufficient capital. So, you need to budget sufficient capital for utilities, wages, marketing costs, logistics, product development, etc. to last long enough for the business to be stable. The need to innovate or go in another direction as the situation calls for it (e.g., covid-19) may arise as well, and you need to be in a position to be able to capitalize on it.
Lesson 8: In-House or Outsourcing
Doing most things in-house or by yourself can save a lot of money. But if you don’t have the skillset or the extra manpower, it can take up a lot of time which you can spend marketing or building the business. As a business owner, you can’t do everything by yourself. Outsource prudently and focus on doing things that you are good at.
At the time of this article, due to challenges in 2020, the ENCIK business has ceased for now. Hopefully one day it will be relaunched, and the lessons I have learnt will come in handy for the future.
Have any other experiences to share? Do share your thoughts.
Vikram Pillay is a certified project (PMP, IPMA) and risk (PMI-RMP) manager who believes in light of the current Covid-19 pandemic, it is especially important for businesses and professionals to network with each other to leverage ideas, adapt, take risks, and innovate so that the “new normal” of the future can be managed well. Connect with him at https://www.linkedin.com/in/vikrampillay/
