I’m Syama Meagher, CEO of Scaling Retail. All of you startups out there, I’m sure you’re figuring out, “How do I get this off the ground?” But more importantly, “How do I create a business that is going to be able to scale up?” Certainly, doing everything yourself seems a little bit frustrating and daunting, but it is part of a strategy that will allow you to effectively manage and hire more people. So things like logistics, cash flow, all those nitty-gritty things that, maybe, aren’t on the sexy side of running a business are actually going to be so important as we start to grow. So let’s unpack this a little bit.
Number one, understand cash flow and money. Money is critical. Without a firm understanding of cash flow and understanding finances, what you might end up finding are that money is going to come and go. Money can be funny, especially in retail. Without understanding your cash flow, structuring your business model and your structure of the payment terms, you might find yourself in a pickle a few times a year and unable to cover costs. Now, a brand that can scale is a brand that can stick around. You simply can’t open your doors and expect to grow. You’ve got to put in the hard work. Part of that is really managing your effective cash flow budgets and starting to get a grip on what’s coming in, what’s going out, and how much you really need to be running your business on a day-to-day basis, and how much you need to actually inject, in order to be able to grow, so doing future planning as well as day-to-day planning.
Now, the second thing that’s so important when you’re trying to scale up is logistics. There’s just no way you’re going to be able to send out that many orders, whether it’s e-commerce, or be able to ship effectively to any of these department stores, or even boutiques, unless you’ve got a third-party fulfillment center or your own distribution platform. Perhaps you even have a full-time employee who’s just there managing everything on the back end for you, working out of your studio or your office. But logistics, my friend, is really going to be the deal breaker between a brand that’s just going to be distributed in a couple different places and have a really nice small range, versus one that’s really going to see scale. Trust me. You simply cannot be the person who’s going to be doing your own logistics. You’ve got to get someone else on board, if that is your plan to grow.
Now, lastly, and certainly more importantly, keep in mind that all of the hard work that you’re doing managing all the different areas of your business are actually critical in order to be able to hire the right people. It can be easy to open doors and say, “I’m just going to hire a sales person to do the hard work for me.” But you actually miss out on a lot of valuable information, such as how are retailers responding to my products? How are consumers responding? You also miss out on valuable things, like how do I negotiate? What does it mean to be persistent? And what are the right goals and expectations to have for someone in that particular role or field?
So think about this as sums of all the other areas of your business that you are really growing on, right? So whether that’s marketing, sales, taking a look at operations, taking a look at things like finance and cash flow, merchandising, all of those areas where you might be going, “Ah, I can’t believe I have to do this myself,” are actually amazing valuable learning opportunities for you for when you do decide to hire out those right people.
So just because you have the money to hire everyone does not take away from that valuable learning experience, right? You want to be able to set expectations, you want to be able to empathize with your employees because they’re going to want to know that you know how to talk the business, right? Similarly, if you were to hire a developer or a coder to work on your site, you know, these guys speak a totally different language. How else are you going to know and understand that language unless you do some research and learn a little bit more?
So this handed-being-handed-to-you model simply is not going to cut it as you choose to scale your business. You’ll be hiring more people, your business will grow beyond you and it’s very important that we understand exactly what those roles and responsibilities are, and what that really means for you, the CEO of your company.
All right guys, if you are ready to scale your business, head on over to scalingretail.com. I have so many different kinds of pieces of information, blogs, articles, as well as amazing videos all for that business that is scaling. And if you’re ready to get some hands-on assistance and really figure out how to 3x your business, look at new revenue channels and really step your foot in the right direction, send us an email at firstname.lastname@example.org. Guys, I am where you are, so make sure you subscribe to YouTube, make sure you leave a comment below, and lastly, please do follow us on Instagram, Facebook, and LinkedIn. All right, talk to you later. Bye.