How She Built A $5K/month Business From Her Bedroom

Summary

In this inspiring episode, Lily, a successful entrepreneur, shares her journey of building a wellness brand from scratch. She started with a simple candle kit and grew her business through pop-up stores, social media, and profitable workshops. Simon Squib, a seasoned entrepreneur, offers advice on how Lily can scale her business to the next level, focusing on partnerships, influencer marketing, and building a strong community. The episode emphasizes practical steps for aspiring entrepreneurs, highlighting the importance of testing ideas, managing inventory, and creating lasting customer relationships to drive business growth.

Takeaways

• 😀 Start small and test the waters: Lily began her business with minimal investment, selling her first candles to her mom and friends. This allowed her to gain confidence and learn the ropes before scaling.
• 😀 Pop-up stores can be a game-changer: Lily hosted pop-up stores at local gyms and malls, turning them into profitable sales events and expanding her customer base.
• 😀 Collaborations are key: Partnering with other businesses (e.g., cafes) helped Lily introduce new concepts like candle-making workshops, which became a significant revenue stream.
• 😀 Embrace social media authenticity: Lily's success in social media came from being herself, and handling rejection as redirection. Authenticity resonated with her audience.
• 😀 Workshops offer high-profit margins: Lily discovered that workshops provided a significantly higher profit margin (85%), leading her to focus more on this business model.
• 😀 Learn to manage inventory: Lily faced cash flow problems due to overstocking. Once she started buying only what she could sell, she improved her financial situation.
• 😀 Build a community around your brand: Simon stresses that a strong community of 'true fans' (around 1,000 people) who support and promote your brand can be more valuable than traditional advertising.
• 😀 Utilize influencers strategically: Instead of just paying influencers for posts, consider offering them equity in your business. This fosters long-term partnerships and mutual growth.
• 😀 Be open to new opportunities: Lily embraced new ventures, like workshops, even though she had no prior experience. Saying 'yes' to opportunities can lead to game-changing moments.
• 😀 Use partnerships to scale without overwhelm: Instead of opening physical wellness centers, Simon suggests partnering with existing businesses (e.g., spas) to scale more efficiently through collaborations and franchise models.

Q & A

What was Lily's first step when starting her business?

Lily's first step was purchasing a candle-making kit off Amazon as a way to cope with a rough time. She then created her first candle and sold it to her mom, which became her first customer.

How did Lily initially grow her business beyond her personal circle?

Lily reached out to her local gym and asked if she could set up a pop-up shop there. This led to her making £850 in one day and further exposure to customers.

What mistake did Lily make early on, and how did she learn from it?

Lily over-purchased stock early on, leading to a cash flow problem. She learned to reduce her inventory until demand was proven, which is a key lesson in managing business expenses.

How did Lily's business transition from selling candles to offering workshops?

Lily was invited to do a candle-making workshop at a café. She loved the experience and realized that workshops offered higher profit margins, which led her to focus on them more in her business.

What did Simon Squib emphasize about scaling a business?

Simon emphasized that scaling should be carefully defined. For Lily, scaling could mean opening wellness centers, but he advised her to consider alternative models like partnerships with spas or offering at-home kits to reach a wider audience without over-expanding.

How can community play a role in growing a business?

Building a loyal community is crucial for growth. Simon suggested using platforms like WhatsApp or Discord to allow customers to engage with each other, creating a sense of belonging and advocacy for the brand.

What advice did Simon give Lily about using influencers to grow her business?

Instead of just paying influencers to promote her products, Simon suggested offering them a stake in the business, turning them into business partners who could promote and grow the brand more authentically.

What was the importance of Lily's first pop-up store, and how did it impact her business?

Lily's first pop-up store at the gym was a turning point. It allowed her to generate significant sales in one day and proved the potential demand for her candles, motivating her to continue growing the business.

What does Simon mean by 'rejection is redirection'?

Simon explained that rejection is a natural part of the entrepreneurial journey. Instead of being discouraged, it should be seen as an opportunity to pivot or explore new possibilities.

Why does Simon suggest creating value for a community before asking for anything in return?

Simon believes that providing value to the community without immediately expecting something in return builds trust and loyalty. This approach creates a strong, supportive network that will eventually advocate for your brand.