A (Proven) Ex-Military Strategy to Growing Your E-commerce Business
October 14, 2015 10 min read
It is commonly said that we should never mix business with family. However, Jason Boyce Co-Founder and CEO of Dazadi.com has proven that not only is that a false mantra, but that the bond of familial trust and strong leadership is the ultimate weapon against any e-commerce hardship.
In the fifth episode of Skubana's E-Commerce Mastery Series where we invite experts of their respected fields to share their best practices for success, our host, Dr. Jeremy Weisz of InspiredInsider.com interviews Jason Boyce, Co-Founder and CEO of Dazadi.com.
In this episode you’ll learn how through strong leadership, and working with those close to you, can get you through all hardships you may face running a successful e-commerce business
Some insights found by Jason Boyce are:
- How his Marine Corps experience provided him the leadership skills and determination to conquer every obstacle
- How the e-commerce climate is ever changing, and the product movements he had to make to adjust Dazadi
- The importance of netting 10% revenue rather than having an increased total sales value
- How to maintain awareness of every cost to help stay competitive
- How going into business with your family and utilizing each other’s skill sets can not only save you on costs, but the shared concern for the business is an already established trust.
RAW TRANSCRIPT: Jason Boyce of Dazadi
"Viewers who are in eCommerce now or bootstrapping their company, focus on the profit. Don't listen to CNBC. Don't listen to Bloomberg Business Week where these guys are going after market share because unless you have an IPO and unless your stock price is $500 a share and you can go sell stock and raise capital, by the bucket load, that is not a good strategy for you and it'll end up in your ruin. By the skin of our teeth, we survived, but it was almost too late for us and if I can share anything, please, viewers, remember that.” (00:33:44)
“We partnered with a company called Zendesk for our customer service which is a terrific, cost-effective software system. I personally use Evernote like crazy, I use Highrise. I'd be lost without Highrise. Just to help me manage everything from my team, vendors, even some key customers.
We use Google Drive, which I don't know if you would consider that software. But we have a team in the Philippines now that are doing work for us on product uploads and we use Google Drive constantly. Actually, I think you sent my invite with Google Drive, so I knew what that was.” (00:40:38)
“Someone asked me one time, a friend of mine, ‘Which would you rather do? Would you rather make $100,000 on $1 million in sales? Or would you rather make $100,000 on $10 million in sales?’ And at the time, I said $10 million, man. I want that $10 million." I think it was year three. ‘I want that revenue because when I read Bloomberg or when I read Business Week... CNBC, these guys are talking about sales growth." They're talking about all that market share they're eating up. And the close friend said ‘No, that's not what you're about. You need to focus on the $1 million in sales that will make you 10%,’ and that's our profit target. At the end of the day, when all the bills are paid, we want to net 10% of our revenue.” (00:50:08)
“Well, I think there's three things, right? Number one, turn down the noise and keep it simple. Don't chase the latest bell and whistle if the basics aren't working optimally, right? Turn down the noise. Know who you are, because don't go chasing Amazon if you don't have the funding to do it. Because it's a path to ruin.
Number two, watch those financials. If you don't know how your financials work, hire a good accountant to train you or take a course. You've got to know that P&L and the balance sheet. And you've got to make sure that at the end of the day, that net profit doesn't have a big negative sign in front of it. Because if you're a bootstrapped company, if you're not doing the things that will do that, you're not going to stick around. You're just not going to be there.
Just one side note on item number two, before I go to the final point, is paying attention on a high-growth company when you start growing at a double-digit...we're pushing triple-digit right now. Focus on the cost as a percentage of your sale, right? Make sure that those...if you're selling for $1, make sure that after your profit is left over, and your rent, and whatever other, your salary expenses are, make sure that there's still something left of that dollar after everything has been paid for.
Then the last thing for a bootstrapped company, that I would recommend, is know your resources, right? It doubles with number one where you can't go chasing Amazon.” (01:03:11)
We hope these real insights from a real seller can help your e-commerce business grow and succeed. Stay tuned - this will be an ongoing weekly series featuring a variety of e-commerce experts looking to provide you with hard-won knowledge free of charge.
Checkout out our previous E-Commerce Mastery Series episode featuring Eric Tong of TechArmor and how their customer retention strategy brought this e-commerce business to the top 100 best sellers on Amazon.com.
Work Smart. Sell More.
Written By Chad Rubin