Challenges and work ahead

Challenges and work ahead

Lesson Details:
March 03, 2020

Video Transcription: It feels like things are really looking up for that grout sales business sales are going through the roof it's drawing every month its million plus dollars a year in revenue amazing but there's still so many next steps and there's so much more work to do for example every new product line the product for cleaning stone tiles and the product for pet pet stain cleaners those all have to be released on Amazon and have to be ranked when you first launch on Amazon if you recall the sales don't happen right away the sales only happened after you trihard trihard trihard and then you get initial sales initial reviews the product starts ranking that process can take a while and that has to happen not for one product line but for a lot of different products now so that's a challenge that's gonna take resources and attention now it's a good time to start applying to the brick and mortar retailers the Home Depot's the Lowe's all the big big stores and go through their extensive application process and all the requirements they ask and all the different difficult things that's also gonna take a lot of resources a lot of upfront inventory that also is going to be a challenge that's gonna create this challenge of even more problems with warehouse shipping buying up more inventory because one issue is that let's say you're making a lot of revenue but not all that revenue is profit you gotta pay employees now you've gotta pay for storage in the warehouse you gotta pay extra extra things for everything and then if a brick and mortar store orders a lot of inventory well guess what you need to buy up that inventory in front and eat up through all the revenue that you just had.

So this business even though it has a lot of revenue it eats revenue really quickly to feed the growth so it's actually not that easy and there's less revenue left over than you think and we'll cover that when we go over the business plan for that what happened in the two-plus years you'll see how much less revenue is when we look at actual pure profit and the other problem that we need to solve is Google search for all products because if you recall most of the revenue for this product comes from the Amazon sales not ranking in Google it still doesn't rank highly in Google search for a lot of the original keywords we were targeting because Google search is harder to rank in than Amazon search and not only does this project have to rank for the keywords associated with grout cleaning it also has to rank for the new product line so there's a lot of attention that has to be put towards Google search and now that this product really is positioned to become the de-facto grout cleaning product that there is it needs publicity any kind of cleaning any kind of home-and-garden publications podcasts blogs whatever they have to know about it they have to write about it their readers have to learn about it and that's gonna be a publicity campaign an ongoing campaign and this company hasn't even tried to do this.

So this is gonna be a total new project but the growth potential is totally there it's poised it's proven that it can sell on Amazon it's proven that it's the best in the market which is gonna position it well for publicity for getting into brick-and-mortar stores and for slightly easier path to ranking and Google through some that for some technical issues but overall there's a lot of work ahead but it's good work there's a light at the end of the tunnel of every one of these things and the light is very shiny like the potential for this product and this business is really amazing it can be not a million dollar-plus of revenue a year but ten millions of revenue plus a year if it gets into the brick-and-mortar stores and if it really becomes the de-facto cleaning because today if you look at any kind of cleaning influencers they're not recommending this product that much very very very few and very small ones but I still ironically I got some kind of a recommendation for a news article or something and it was like how do you clean grout and I thought that I was getting recommended this article because of this particular product but it's somebody recommending some kind of like a vinegar solution or some some kind of DIY home solution and so people are still recommending solutions that are not this and so this is still not a household name and so that tells me there is so much room to grow so it's a very positive future for this product I'm very happy for the founder there was a lot of challenges that we overcame and few people are more deserving of success than the founder of this company but for you hopefully this illustrates how hard it was in the beginning why it took longer than it should've and why most companies it takes longer than you wanted to and the kind of work that's coming up ahead and in the next videos I'm going to show you a business plan for this company in its two-year maturity.

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