Read on Twitter
Corporate structure thread (more interesting than it sounds).
Goal: Create an entity that builds fast growth DTC brands.
Goal: Create an entity that builds fast growth DTC brands.
1. The @MoneyWhile is not a "trading entity" it is a vehicle to grow brands. We've built a core team of specialist areas that we want to do in house (e.g. Marketing, fulfilment, HR, CX).
This way we focus on what we're good at, and outsource the rest.
This way we focus on what we're good at, and outsource the rest.
2. We do sacrifice some profit for the opportunity cost of net profit percentiles. However, the speed we grow enables a higher cash margin.
E.g. Instead of hitting 40% net, we could do 30% because we outsource an area. That 30% however results in higher cash margin.
E.g. Instead of hitting 40% net, we could do 30% because we outsource an area. That 30% however results in higher cash margin.
3. When we started this, the goal was to keep the brands small. In my mind, that meant revenue/profit. What we've found since (especially this year) is that your targets can be increased significantly in the D2C space.
The sector is booming and the opportunities are nuts.
The sector is booming and the opportunities are nuts.
4. In-house vs agency.
Age old debate. I've found that a core internal team of skilled DR advertisers, CX, social, product, etc working with outside expert consultants (from agencies) works best.
You stay nimble and keep your pulse on the market through an agencies network.
Age old debate. I've found that a core internal team of skilled DR advertisers, CX, social, product, etc working with outside expert consultants (from agencies) works best.
You stay nimble and keep your pulse on the market through an agencies network.
5. Accounts.
I hate bookkeeping and accounts admin. We outsource it all. We also work with an amazing remote FD called @rwjbrown who's advised me for over 10 years.
Know your skills and outsource (you getting the theme here?).
I hate bookkeeping and accounts admin. We outsource it all. We also work with an amazing remote FD called @rwjbrown who's advised me for over 10 years.
Know your skills and outsource (you getting the theme here?).
6. Advertising.
In a 2020 D2C brand, you get leverage if you are skilled at FB ads in-house. This is something I had to pick up and learn fast with CIRCULR.
You can respond much quicker than an agency can to trends and internal product related campaigns.
Learn first.
In a 2020 D2C brand, you get leverage if you are skilled at FB ads in-house. This is something I had to pick up and learn fast with CIRCULR.
You can respond much quicker than an agency can to trends and internal product related campaigns.
Learn first.
7. Advertising cont...
A brand's year one needs customers. A brand's Y10 has a lot of customers. Don't fixate yourself on metrics like ROAS if you're in Y1. It's gonna be low whilst you're TOF heavy. As you get more customers you can focus on RPR which is cheaper.
A brand's year one needs customers. A brand's Y10 has a lot of customers. Don't fixate yourself on metrics like ROAS if you're in Y1. It's gonna be low whilst you're TOF heavy. As you get more customers you can focus on RPR which is cheaper.
8. Building a team.
No one has left our company since we started (unless fired). We have an unbelievable culture. We've built a place that we all want to work.
If work is ~50% of your life, make it fun.
Our culture is something I'm most proud of.
No one has left our company since we started (unless fired). We have an unbelievable culture. We've built a place that we all want to work.
If work is ~50% of your life, make it fun.
Our culture is something I'm most proud of.
9. Creative.
Creative never sleeps. To stay ahead, you must bake creative inside your culture and allow ideas to be tested.
As an owner, you are not entitled. Let your team run with ideas, let them fail. Advise but do not dictate.
Some of best campaigns have come from jokes.
Creative never sleeps. To stay ahead, you must bake creative inside your culture and allow ideas to be tested.
As an owner, you are not entitled. Let your team run with ideas, let them fail. Advise but do not dictate.
Some of best campaigns have come from jokes.
10. The journey.
Along the last 4 years, I've been applauded and mocked. Truth is, neither matter. Focus on your own wins and celebrate them.
Have parties.
If you fail, who cares. Along the way, it'll blend in to success.
Good luck and throw us a comment below x
Along the last 4 years, I've been applauded and mocked. Truth is, neither matter. Focus on your own wins and celebrate them.
Have parties.
If you fail, who cares. Along the way, it'll blend in to success.
Good luck and throw us a comment below x
