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Bootstrapping an Online Fabric Shop and Growing to $20k per month

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Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#131

Post by sfifs »

conductr wrote: post #89
Descartes1 wrote: post #23

I've always hated the concept of "revenues" in commerce. Honestly, who cares what your revenues are? Profits are all that matters.

Agree. I work for a big healthcare company that likes to throw around the revenue numbers (pretty much all public companies do). Of course it's huge, cause healthcare is expensive (US). Our profit margin is like 2% cause COGS and labor is just as expensive and our top line revenue is basically just a made up number that we like to bill people, with no hopes of actually getting paid that amount, it's before the insura…

The question is so what if your profit margin is 2%. Are you big and expanding or are you contracting and belt tightening? Do your shareholders demand higher earnings? How much power do they have? Amazon famously zeroed out profits for a decade in pursuit of growth.

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#132

Post by conductr »

sfifs wrote: post #131
conductr wrote: post #89

Earlier quoted context omitted.

Agree. I work for a big healthcare company that likes to throw around the revenue numbers (pretty much all public companies do). Of course it's huge, cause healthcare is expensive (US). Our profit margin is like 2% cause COGS and labor is just as expensive and our top line revenue is basically just a made up number that we like to bill people, with no hopes of actually getting paid that amount, it's before the insura…

The question is so what if your profit margin is 2%. Are you big and expanding or are you contracting and belt tightening? Do your shareholders demand higher earnings? How much power do they have? Amazon famously zeroed out profits for a decade in pursuit of growth.

I get it. There's no one metric to rule them all. It's a narrative. But that's kind of my point, the obsession with revenue doesn't always make sense. For example, my company talks about growing revenue for many recent years. That's the biggest takeaway if you we're doing laymen research. However, we talk about it because it's a good story instead of mentioning that our margins are eroding. Actually, our business is shrinking but due to growing revenues nobody knows it. For us, revenue naturally grows at the same clip of healthcare cost. When that's 20% and we're growing by revenues by 15%, well most outsiders would not know we're shrinking.

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#133

Post by ddevjani »

fridaysoff wrote: post #65

Hi! It's Alanna Banks, found of Fridays Off. Thank you for reading my story and all the comments below. I haven't had a chance to read them yet, but I'm going to run through them now. Please feel free to reach out to me with questions. :)

Hey Alanna! LOVING your story. its so genuine and raw. it shows that it isn't easy and persistence + constantly learning are key.

I'd love to host you on a podcast series I've started specifically focused on bootstrapped founders, starting side-hustles, and their stories of the early days.

Even though your post answers most of them, hearing them from you would be fantastic.

let me know if that'd be of interest.

Sending lots of good vibes, and telling my north-of-the-border -mom-friends about FridaysOff!

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#135

Post by sfifs »

conductr wrote: post #132
sfifs wrote: post #131

Earlier quoted context omitted.

The question is so what if your profit margin is 2%. Are you big and expanding or are you contracting and belt tightening? Do your shareholders demand higher earnings? How much power do they have? Amazon famously zeroed out profits for a decade in pursuit of growth.

I get it. There's no one metric to rule them all. It's a narrative. But that's kind of my point, the obsession with revenue doesn't always make sense. For example, my company talks about growing revenue for many recent years. That's the biggest takeaway if you we're doing laymen research. However, we talk about it because it's a good story instead of mentioning that our margins are eroding. Actually, our business is…

Ok I understand. Typically any public statements made by a company are carefully orchestrated PR because interests of management and key employees who are compensated in stock and options is tied to stock performing well (if public) or valuation remaining good (if private) and retaining the confidence of the board which represents shareholders and can fire them. In very large organizations, internal messaging about overall company financials are also carefully orchestrated (eg. Teleprompters are frequently used in internal "town-halls") because with so many people, internal communications are also quasi public, still messaging tends to be more blunt. However at a operational level, if you are seeing delusional communication, it's probably time to pack up your bags

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#136

Post by fridaysoff »

ddevjani wrote: post #133
fridaysoff wrote: post #65

Hi! It's Alanna Banks, found of Fridays Off. Thank you for reading my story and all the comments below. I haven't had a chance to read them yet, but I'm going to run through them now. Please feel free to reach out to me with questions. :)

Hey Alanna! LOVING your story. its so genuine and raw. it shows that it isn't easy and persistence + constantly learning are key. I'd love to host you on a podcast series I've started specifically focused on bootstrapped founders, starting side-hustles, and their stories of the early days. Even though your post answers most of them, hearing them from you would be fantastic. let me know if that'd be of interest. Sendi…

Hi! Sure I would be happy to do an interview. :) And thanks for spreading the word :)

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#137

Post by fridaysoff »

robertk wrote: post #2

I am glad that the advice is not unusual and refers to the usual suspects: judicious A/B testing of SEO keywords, personalized correspondence with early customers, and leveraging media and coaches. It gives confidence that anyone can do this.

Thanks! I'm just a regular person trying to make a go at my own thing because the corporate world just wasn't for me. My goal is to help people realize that if they have a dream they should go for it, but also to realize that it doesn't come easy. It's A LOT of work!!

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#138

Post by fridaysoff »

cpeterso wrote: post #116
fridaysoff wrote: post #79

Earlier quoted context omitted.

You're welcome. Ya you can't be scared off by the big guys like Michaels, Walmart, Amazon. The fabric I sell isn't really mainstream and it's more boutique quality designer prints. My market isn't really people who would shop at the big box stores anyway. I tap into the niche markets, etsy shop owners, small biz crafters. There is a real community and it's one that likes to shop local and Canadian.

How do you source your fabrics? Do designers or agents approach you with existing inventory? Or do you seek new art online or at trade shows? My wife worked in fabric design and it's hard for new designers to break into the industry.

I work with a few manufacturers and meet with their sales reps on a quarterly basis.

Re: Bootstrapping an Online Fabric Shop and Growing to $20k per month

#139

Post by fridaysoff »

blknmild wrote: post #110
fabricexpert wrote: post #26

I run an almost identical fabric shop online. 20k/month revenue is great but remember this is not a SaaS with unlimited scale and low costs. It's actually a very traditional business model, and margins here are only going to about 20-30%, potentially a lot less if you have to pay for your storage space. You buy the fabric, typically you'll double the price when selling to customers. Then you take off additional posta…

At what point do you decide that it is not worth your time? To me it seems taht at a certain point, once you've established the the margins, you grow the business to where you're no longer doing any work.......turning the business into an asset which has some nice cash flow and allows your employees to be happy.

When you're bored with the business and uninspired to do the work then I think it's time to move one. Also if you're deep in debt and not making any money I would say that's a pretty good indicator too.
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