There is no doubt that we all want to see results as quickly as possible, and in the business world this is a very rare and unusual phenomenon. However, technological advances have made it easier every day to publicize your brand, reach potential customers and expose your idea to investors willing to inject the capital your idea needs.
The internet has made the value of obtaining a client very cheap, thanks to the influence of social networks, which currently provide an incredibly profitable opportunity to develop promotional strategies with very low prices.
Also read: The importance of social networks for your business.
Taking advantage of these advantages, Alex Moreno and Caleb Garrett, creators of Hawkers Co., a company that sells sunglasses, have managed to grow their business model to the point of turning their initial investment of $300 into $60 million in as little as only 2 years.
What exactly was your strategy? AJ Agrawal, CEO of Alumnify, interviewed these two entrepreneurs and tells the Inc. portal what the three strategies they used were.
1. Know your market.
Knowing the market has always been a considerable advantage for anyone who is creating a business. This includes knowing your customers, suppliers and of course your competitors.
Also read: How to develop, sell and distribute a product.
In general, a new brand starts small with the intention of testing the reaction of its customers, however Moreno knew that the sunglasses market was monopolized by Luxxotica, the company in charge of the famous brands Prada, Ray- Ban and Gucci, products that easily reach $200 dollars.
Moreno knew that he wanted to launch an affordable and accessible product, so the Hawkers glasses were launched with a value between $20 and $40 dollars. Additionally, they are produced in the same facilities where the Luxxotica brands are created. The same quality, good designs and better prices.
2. Take big risks.
The magnitude of the risks you take depends on how much you are going to lose by taking them. For Moreno this was a great advantage, since he had a prototype, a website and decided to sell only online with the intention of keeping prices as low as possible. His investment was $300, so if the company grew or went out of business, he would only lose a few dollars.
Guided by friends and family, Moreno decided to start promoting his brand through Facebook advertising, just at a time when this method was receiving a lot of criticism. Despite the risk, Moreno and his team decided to make the investment and do it anyway. Within a couple of weeks, they proved the risk was worth it. Their social media pages were growing steadily and sales were skyrocketing.
3. Transparency will create an army of followers.
Both Moreno and his partner Caleb Garrett agree that one of the reasons for their success has been that they have maintained a simple and transparent business model for the client. Likewise, they affirm that the companies with which you create associations play a vital role in your image before clients and their relationships with Facebook, Paypal, DOPE and Saucey, among others, have borne fruit.
Moreno affirms that Millennials have become individuals who are very attentive to company profit margins and if they find products with very high prices, they are aware that they can buy a very good alternative elsewhere and at a better price.
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