The Star Principle book by Richard Koch is a business classic and presents a very wise strategic framework he learned while founding the Boston Consulting Firm. How does it relate to ecommerce selling? Well, it helps us answer some fundamental questions about our market and product choices, which have a huge impact on the value or failure of our businesses.

Tip Of The Week: Earlier this week Kyle and I sat down to discuss Pinterest and Shopify and how they can be used together for e-commerce success.

Running an e-commerce business in an economic downturn can present intense challenges - some will thrive & grow - others will struggle. In this episode, we share 10 principles you can use to survive and thrive.

There are so many advertising platforms out there for ecommerce sellers these days. But not all platforms are created equal. Our intrepid quartet of ecommerce operators and thought leaders compare their favourite platforms and also the ones they love to hate! We cover Amazon ads, Google advertising (both Google text ads and Google shopping ads), Tiktok, Pinterest ads, Wallmart and Etsy advertising platforms. 

Running an e-commerce business in an economic downturn can present intense challenges - some will thrive & grow - others will struggle. In this episode, we share 10 principles you can use to survive and thrive.

Running an e-commerce business in an economic downturn can present intense challenges - some will thrive & grow - others will struggle. In this episode, we share 10 principles you can use to survive and thrive.

What you’ll learn

* 10 Principles for surviving and thriving in a down economy* Why Productive Paranoia helped Bill Gates thrive in difficult times* Why you should probably cut a lot of your physical product lines* How the Star Principle applies and more importantly, when to use it* What your product mix is and how to optimise it for a downturn* The right time to push for market share!* The big opportunity that comes from running your business well, while others start to fail* The importance of timing your moves  

Resources

* The Star Principle, Book by Richard Koch* Pixie Faire, Jason and Cinnamon’s primary business

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Transcript

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[00:00:00] Michael: Once you've got some cash reserves, don't go out and spend them too quickly.

[00:00:03]

[00:00:34]

[00:01:13] INTRO: Hey folks, we are back at the e-commerce leader and we're talking today about how to not only survive, but thrive in a downturn in e-commerce. It may be that it's specific to your particular market. It may be the e-commerce as a whole is challenged. As people go back to physical shops. Now in early mid 20, 22.

[00:01:31] And it may be that there's an overall recession in the economy, in each case, rather than reading the news and falling into doom and gloom, we need to stay positive in an intelligent way. And we have some principles that hopefully can help you do that. Today. We are going to focus on the principles where you can start to really gain market share, and really produce a powerful business on the back of, a difficult situation.

[00:01:53] So stay tuned. I hope it's helpful. And thanks in advance for listening.

[00:01:56] Michael: So principle number six is pivot your market if needed. So there's a couple of potential pivots in this because I think they're both different, but really critical. So based on the star prints, I would say if you are in a market where the future is bleak, because it's shrinking, for example, it's two is 2020 in about March, April, may, and you're in the travel market as sadly, a couple of my friends in London, in their.

[00:02:17] E-commerce space are where, then you may need to pivot rather swiftly. And that may mean selling out the businesses. One of them did that may mean, ramping up a service-based agency is another one of my clients did,

The first year of business is always a huge juggling act, and ecommerce is no exception. Figuring out whether your sales channel is working; getting the product design, packaging and pricing right so it sells to happy customers at a profit; retaining customers after the first sale and trying to build some brand loyalty; social media marketing…there are so many things to solve for. 

Having Negative Cashflow is a good thing! Getting your customers to pay you months or years before you make the product, and more. Some e-commerce businesses have really interesting cash-flow characteristics - and it’s a secret to most outsiders. In this episode we’re going to talk about the crazy reality that is possible in today’s world.

Your first year in business is an incredible challenge. You’ll enter it with dreams and plans and exit it with a reality that may or may not live up to your hopes. In this ‘hot-takes’ episode we on our first year in business - and share insights and perspectives.

Having Negative Cashflow is a good thing! Getting your customers to pay you months or years before you make the product, and more. Some e-commerce businesses have really interesting cash-flow characteristics - and it’s a secret to most outsiders. In this episode we’re going to talk about the crazy reality that is possible in today’s world.