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Performance & Growth

How I Built A Million-Dollar Business In 12 Months

The step-by-step process that one successful entrepreneur used to build a seven-figure business in just one year.

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The idea

In 2014, a friend of mine arrived at dinner wearing these big, bright, ugly, orange-lensed safety glasses. I thought he was playing a joke on me. We weren’t in a five-star restaurant, but people were dressed nicely and his look was out of place. Eventually, I had to ask, “What’s up with the safety glasses?”

He explained that his lenses were made to block out artificial blue light. Devices like cell phones emit this blue light that affects the level of melatonin your body produces, a chemical that helps us sleep at night. Essentially, he said, blue light tricks your body into thinking its daytime.

Like a bolt of lightning, it all made sense. My long-term sleeping issues and lack of productivity during the day may have been from overexposure to blue light at night. I decided to perform an experiment: I went home and pulled out a pair of yellow-tinted ski goggles. Although they looked ridiculous, I wore them an hour before bed for the next week.

I slept like a baby.

But there was one problem. I couldn’t wear them in a social setting without people thinking I was some weirdo. Not wanting to disrupt my newfound healthy sleep pattern, I felt stuck in my apartment. I thought, “What if I could create a blue light-blocking lens and put it in a stylish glasses frame?”

Related: The 10 Best New-Age Business Ideas You Haven’t Heard About Yet

What I didn’t do

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PC: jamesswanwick.com

I didn’t try to invent a new product. I simply took an existing product — blue light-blocking ski goggles — and adapted them into something fashionable. I thought of a friend who had taken yoga mats, made them one foot longer, and called them “extra-long yoga mats.” He made millions.

Partnering up

My youngest brother, Tristan, had just left his job as a reporter at a newspaper. I didn’t fancy the idea of dealing with manufacturers, and since Tristan was a natural investigative reporter, I figured he could source and vet a decent Chinese manufacturer. I decided to partner with him: He could source the product and deal with the manufacturers while I concentrated on strategy and marketing.

Related: 10 Questions to Ask Before Committing to a Business Partner

Prototype testing

We had dozens of prototypes made from three Chinese manufacturers. Some were effective but looked ugly. Others looked stylish but weren’t effective.

I had to create the perfect glasses, so people would feel confident wearing them in every social setting, without sacrificing quality and effectiveness. I handed out prototypes to friends to get their input. We chose the current version based on their feedback.

Testing the eCommerce waters

We placed a minimum order of 300 pairs, built an Amazon page and launched on Black Friday 2015. On Day One, we sold four pairs. It wasn’t much but we were ecstatic. The next day we sold five. Then six or seven orders trickled through every day thereafter. We broke even in two weeks and sold out in a month.

It proved there was a market for this product. The only problem was that we hadn’t ordered any more than the original 300 pairs. We soon realised that it was Chinese New Year and the manufacturers had shut down. We couldn’t sell any glasses in January 2016. Or in February. None.

We used the downtime to take courses in selling on Amazon and asked for advice from friends. But when the next order arrived, it felt like we were starting from scratch. Sales slowly trickled in. We’d lost momentum.

Though getting back to our original pace took time, we learned some invaluable lessons along the way. Some seem like no-brainers in hindsight, but with a new venture, learning these key elements is (eventually and very essentially) part of the journey.

Related: 5 Ecommerce Myths That Are Sabotaging People’s Businesses

Credibility: Customer testimonials influence people to buy in a pretty powerful way. So we reached out to customers and begged them to record a testimonial. I called in favours from broadcast personalities with big podcast audiences. I was interviewed on shows like Bulletproof Radio about the dangers of blue light. We saw a direct correlation between podcast interviews and sales spikes.

Snapchat: I focused on growing my Snapchat following and often wore the glasses. Soon enough, customers started sending photos of themselves wearing the product. I’d take a screenshot and share it on my Snapchat. Gradually, more followers starting buying and sharing photos on their social media. It felt like we were creating a modern health revolution.

Upsells: We didn’t offer any upsells until late 2016. If someone wanted to buy one pair of glasses, maybe they’d want another pair at a discount. Or maybe they would want a sleeping mask. The moment we offered an upsell, we made more sales and more revenue. Not offering an upsell quickly enough cost us at least $100,000 in lost revenue during 2016.

Split Testing: We didn’t test the price, headlines or images. We didn’t test much at all. We’ve done very well but would have doubled our revenue had we tested these elements earlier in the process.

Leveraging expertise: We’ve partnered with my first online business mentor, Tai Lopez. We had a great relationship because I was Tai’s top sales guy back in 2015, so when he saw what we were doing, he suggested coming on board as a partner. Tai is one of the biggest social media influencers out there and has taught me much of what I know about online marketing.

He’s a master of strategy and is helping us take the business to the next level.

This article was originally posted here on Entrepreneur.com.

Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.

Company Posts

Sasfin Is Gearing Your Company For Growth

How trade and debtor finance solutions can enable business growth beyond self-imposed ceilings created by cash flow restraints.

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When an entrepreneur running a manufacturing business approached Sasfin for Trade and Debtor Finance, he had four things going for him: Experience, reliable customers, orders and a relationship with Sasfin. When other banks let him know via email that his financing had not been approved, he approached Sasfin, knowing the organisation would take a deeper look at his company than a spreadsheet analysis.

“He approached us because we had a working relationship with the business and they were looking for a facility that would enable them to purchase the stock they needed to fulfil their orders,” says Linda Fröhlich, Head of Business Banking, Sasfin.

“They didn’t have any assets, but they did have those orders, which meant they could bring their debtors to us and we could advance cash against them, getting them started.”

Solutions to enable growth

Today, Sasfin offers a full suite of inter-connected products designed for entrepreneurs and SME owners, but the bank, which operates under the slogan, ‘Beyond a bank’, was built off a base that began with trade and debtor finance.

Related: CEO Michael Sassoon Shares Sasfin’s Successful Strategies To Stand The Test Of Time

“Sasfin’s founder, Sydney Sassoon, went into trade finance in the 1960s because as a textile importer he recognised the need for trade finance amongst SMEs and importers,” says Linda. “It takes an entrepreneur to understand entrepreneurs. This business has never been about products — it’s about the best solutions to enable our clients to grow their businesses.”

When Sasfin first launched trade finance it was because of the challenges around importing goods: The time it took for the shipment of raw materials to arrive, manufacturing to take place, the finished article to be sold and then a further 60 days for payment was crippling for SMEs.

Not only were no facilities available that understood that time frame, but traditional overdrafts require security and are not designed for specific needs. Trade and debtor finance on the other hand work hand-in-hand and provide SMEs with the most valuable commodity: Cash.

Cash is King

“Through trade and debtor finance, we can finance the purchasing of your goods and I can give you terms that fit your cash flow cycle,” says Linda. “Now that’s meaningful for the business owner. Yes, we charge for the facility and the risk we carry, but if you have to make a payment upfront to an exporter, you can also negotiate discounts and off-set a portion of the discount you will receive from the supplier to our fees, which is win-win.

“More importantly though, the biggest challenge that SMEs face is cash flow. Cash flow is king, and that’s where trade and debtor finance comes in. If you borrow money that enables the growth of your business, the finance cost is part of the cost of your sales. The upside is that you have access to cash, enabling growth.”

Many SME owners are familiar with the challenges of growth: You work hard, build your client base, get traction in the market, and suddenly you’ve signed a large order or client whom you can’t service without assistance, because your own cash flow doesn’t cover the raw material costs of the order.

“This is true across all product-based industries,” says Linda. “Instead of slowly building cash reserves to grow the business organically, or waiting between 30 days and 60 days for clients to pay, we advance our clients up to 80% of the value of fulfilled invoices, enabling business owners to grow beyond a self-imposed ceiling created by cash flow restraints.”

Related: Think Beyond The Box

Gearing up

Over the years, Sasfin has watched its clients grow from strength to strength.

“One of our SMEs started out with a R5 million facility. Today they’re operating a R50 million facility and continue to grow. That’s the power of cash flow,” says Linda.

“There’s always a good time to gear-up the growth of your business, where it will enhance the growth and profitability of your company. If the time is right, a financing solution that suits your needs can make all the difference.”

The benefits of trade and debtor finance

  • Converts sales with proof of delivery into cash for day-to-day expenses
  • Extended terms of repayment, with up to 120 days for local purchases and 150 days for imported goods
  • A fully disclosed factoring facility or a confidential invoice discounting facility
  • Match sales to repayments, enabling cash flow management.

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Performance & Growth

My Business Is Growing… What Now?

Unplanned growth can be disastrous for a business, particularly a start-up where most of the departments consist of one person – the founder – or where the business has been based in one city or town or focusses around one service or product for some time.

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It is a known fact that most growth and change are uncomfortable – especially in business. However, when your business grows, you grow with it and so will the business revenue, employment numbers and contribution to the country’s economy. Planning for growth is not only a good way to stay motivated through tough times in business, it will equip you for when the moment of growth arrives– to take your business to the next level.

Make the mind shift

James Cash Penney, founder of JC Penney, said:

“No company can afford not to move forward. It may be at the top of the heap today, but at the bottom of the heap tomorrow, if it doesn’t.”

Business growth should be actively pursued and be a constant part of your business planning acumen. Frequently ask yourself and your staff members: Where do we want to go to next, and what will we do to get there?

Take time out to plan

Research and planning lead to informed decisions which will be critical for your business growth. Consult all stakeholders – external and internal – through meetings or Strat sessions. Whether you bill by the hour, or bake by the truckload, it is critical to remove yourself from operations at least twice a year to take figurative stock of your business growth. This process requires you to be quiet and give it the importance it demands.

Related: Growing Globally – Supporting SMEs On The International Stage

Reasons for growth

Studies have shown that the top five reasons for growth include:

  • To increase the business’ market position
  • To increase profitability
  • To improve the use of company resources, better economies of scale
  • To increase frequency of use or number of users
  • To remain in business.

Know your obstacles

Know what challenges you may face on your journey to growth and be ready for them. Listing the obstacles will bring reality home and help you prepare for how to tackle these obstacles. Think of creative ways to sidestep these barriers to growth by being flexible.

Be brave

Continuously look for planned, achievable and sustainable growth opportunities. Calculate the risk, be mindful of the pitfalls, but do take up new growth opportunities in your business. See growth as the opportunity – that big break – you have been waiting for in your business, and it just could be that. Start slow or small but do continue to grow your business. In the words of Virgin’s Richard Branson: “There are people in this world who choose to see the glass half empty instead of half full… Personally, I see any glass half full as an opportunity to top it up, start a conversation and perhaps spark a great new idea.”

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Company Posts

Growing Globally – Supporting SMEs On The International Stage

Successful internationalisation is often recognised as generating considerable business benefits, which can include increased efficiency, innovation and productivity, whilst also generating growth for the wider economy. However, recent reports have indicated that SMEs in South Africa are not growing and expanding as expected when compared to its international peers.

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Internationalisation refers to the increasing participation of businesses in international markets. Commonly associated with exporting, internalisation is far broader than just this activity alone. Importing, supply chain participation, establishing business partnerships and foreign direct investment are all notable examples of relevant activities.

Key findings

Evidence from ACCA SME members revealed some of the following insights:

  • Just under half (45%) of SMEs said the main benefit of internationalisation was access to new customers in foreign markets. Increased profitability (35%), faster business growth (33%) and access to new business networks (30%) followed.
  • Both SMEs and Small Sized Accounting Practises (SMPs) considered ease of doing business and high growth potential as the most important factors when choosing an export destination. Geography was seen as less important, which may be a result of new technologies reducing its significance as a perceived barrier.
  • Both SMEs and SMPs recognised foreign regulations as the most significant barrier to internationalisation. For SMEs, the second most important was competition (27%) whilst for SMPs it was foreign customs duties.
  • In terms of the future, SMEs’ international ambitions are focused on building the capacity of their business (45%), building networks in foreign markets (45%) and introducing or developing more products and services to market (44%).

Related: How SMPs Can Support Businesses Looking To Internationalise

Small businesses’ call to action

SMEs see the capacity of their business as the most significant internal barrier towards internationalisation and expansion. This may be linked to a limitation in resources, often associated to either the ability of employees to respond to the workload or access to financial capital.

Accordingly, 45% of SMEs also planned to increase their international activities by upscaling their business’s capacity. SMEs looking to successfully enter into the foreign markets should focus on development across the following areas:

1. Adopt cloud technologies from the start

Providing a valuable platform for future international expansion, appropriate applications will provide SMEs with a real-time flow of information, offering detailed measures across various workflows and complementing existing reporting processes. However, each business will need to adapt their business models and management processes to suit these applications, rather than the other way around.

2. Create a business strategy with global ambitions

Internationalising businesses should ensure relevant activities form part of a wider strategic plan and detailed in specific growth objectives. This could form the basis of agreed relevant working priorities and the investment needed to achieve international growth. Such an approach can facilitate a managerial mind set around international growth to be channelled across the business’s wider operations.

3. Develop the scalability of your finance function

An internationalising SME’s growth trajectory can often be unpredictable, often requiring the business to scale up their operations rapidly in order to meet the demands of suppliers, customers and partners.  It is therefore crucial that SMEs develop a finance function which has the flexibility to withstand these challenges. Building the right finance function early on can provide greater operational agility allowing better management of future challenges.

4. Identify where external advice could support your international journey

It is important to consider where external advice may be able to support businesses international objectives, depending on the stage of international growth reached by the SME. This should be conducted as part of a business’s planning process, such as through an internal review programme or through regular meetings with senior management.

Related: Technology In Accounting – Race For Relevance

Technology enabled solutions

SMEs today have access to a wide variety of cloud-based technologies that enables businesses to develop their finance function rapidly when internationalising.

In particular, relevant software can help businesses to monitor operations in international markets. Activities such as processing payroll, compliance events and employee expenses can now be managed centrally with the use of innovative software solutions.

This technology also allows SMEs to understand the flows of data within their own systems as well as with business partners and suppliers. This becomes increasingly necessary with the added operational complexity of participating in global value chains.

Working with professional advisers, this data can be used to support the development of one’s finance function which in turn can cater for international growth. This allows for new business streams to develop as external professional insight with these new technologies is required.

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