Latest news with #ShopifyMasters
Yahoo
10-07-2025
- Business
- Yahoo
Boost Your Bottom Line: 5 Strategies For Business Cost Cutting
One of the draws of going into business for yourself is becoming the ultimate decision-maker. Not only do you have control over your career, but you also choose how things are run—from the everyday decisions to big-picture strategy. However, some things will inevitably be outside your control, such as larger economic conditions. And considering the impact they can have on a business's success, it's a topic on many entrepreneurs' minds. According to 2025 data from the U.S. Chamber of Commerce, 58% of business owners cite inflation as a top concern, which is likely also a contributing factor to the 35% concerned about revenue. While economic conditions are out of your control, plenty of other things are still within it. Finding ways to reduce your operating costs can create flexibility in your budget, helping you weather whatever the future brings. 'Having more margin is a gigantic ecommerce cheat code,' Andrew Faris tells Shopify. Faris is the founder of AJF Growth, a consultancy that helps scale direct-to-consumer brands. Knowing your numbers is step one: how much money is coming into the business, and how much is going out. Next, consider the following strategies to help reduce business expenses and improve margins. Customer acquisition costs (CAC) can add up quickly, but offering free products could significantly reduce your expenses. Leah Marcus and Yasaman Bakhtiar, the duo who founded the pickle brand Good Girl Snacks, employed this strategy to accelerate their business growth. Instead of paying influencers to talk up the brand on social media, they researched established content creators who were likely to genuinely enjoy their product, and sent them complimentary samples. The move paid off. 'It's created a lot of buzz and allowed for a lot of sales, while still maintaining a zero-dollar CAC, because we just gift, we don't pay anybody,' Marcus says on Shopify Masters. Similarly, when the clean skin care brand Tower 28 launched in 2019, founder Amy Liu sought out prominent beauty YouTubers, found their contact information, and sent each a free product sample, with a personal touch. 'From the very beginning, I've always really believed in a handwritten note,' Liu says. 'And we would just send these packages out to people. Our open rates were certainly not 100%, but there were a few.' When the COVID-19 pandemic hit, she began gifting the brand's popular SOS Daily Rescue facial spray to healthcare workers to help alleviate maskne and other skin irritations. In turn, recipients posted before-and-after photos showing how well the product worked, which Liu was then able to repost (with permission) on the brand's account. This social proof is one of the reasons Tower 28 is now a multimillion-dollar brand. AI can save business owners significant time across their operations, especially in areas that don't require a human touch or a great deal of strategy. This can include everything from data entry to content creation to customer feedback analysis. Julianne Fraser, founder of the digital brand marketing consultancy Dialogue New York, developed proprietary systems to help her company meet the increasing demands of its clients. 'We knew that we didn't want to change that human-to-human approach in the way that we pitch, negotiate, and form the campaign narratives, but everything thereafter in terms of executing a campaign—from the contract process, the content approval, the invoicing, etc.—could be automated,' she tells Shopify. 'So we worked with a developer to help us streamline and automate that, and it really improved and increased our capacity substantially.' In fact, the team was able to quadruple the volume of campaigns they were managing without having to scale their human capital. Fraser says this has also led to more fulfilling work for her team, freeing up more time for the creative aspect of their work—the ultimate win-win. Supplier prices aren't written in stone. Taking the time to compare prices among vendors, negotiate for better rates, and review contracts to update terms can help reduce your operating costs. This is especially true if your business relies heavily on outside vendors, which is often the case for product-based companies. Will Nitze, founder of the protein bar brand IQBAR, leveraged the company's increasing production volume to negotiate more favorable terms with his suppliers. 'You go back to your manufacturer and you say, 'Hey, now that I'm producing 10 times more product, I need you to reduce my labor cost per bar from X to Y,'' he explains. Ultimately, Nitze pivoted IQBAR's supply chain from an outsourced 'turnkey' model to an in-house operation during the pandemic. Not only did this give him greater control over production, but it also improved the business's margins. 'Typically, they're marking up or taking a percentage of the total cost, as what's called a materials management fee,' says Nitze. One downside of taking ownership of this process, however, is an increased administrative burden. If this sounds too extreme for your business, you don't have to go all in. You might choose to assume a small role in co-manufacturing and then leave the rest to trusted suppliers. Business growth doesn't always require a huge employee roster. Staying lean can free up more money to put toward product development, marketing, and scaling your operations. For Danny Buck, cofounder of the men's jewelry line CRAFTD London, maintaining a small, mostly remote team has also allowed him to source talent from all over the world. 'From a personal perspective, I didn't want a big team. So CRAFTD only has 15 people,' he says. 'We consider ourselves small and mighty. We're growing and will grow. We don't need a hundred people to do it.' In some cases, restructuring is a matter of life or death. When Brad Charron took the reins as CEO of the protein brand Aloha in 2017, he was immediately faced with some tough decisions. The company was in serious financial trouble, which prompted him to let go of the bulk of his 70 employees and transition to remote operations. Today, Aloha is a multimillion-dollar business, and the team remains small, with about 20 employees. Building and maintaining your online presence can be a huge expense. And while digital ads can be effective, they can also be costly. Leon Hughes, partner at the London-based private equity firm Piper, cautions against paying for ads during a company's early days. Instead, he suggests first ensuring there's a market for your product. 'Go to events, get out there, sell hard, learn about the product, make sure that it is fit for purpose and people are coming back,' he says. This can help you decide if the upfront investment in paid media is worthwhile. When you are ready to invest in paid ads, a more manual approach may be key, says Faris, who utilizes manual bids to achieve the best return on ad spend (ROAS) from his Meta ads. 'The basic concept here is that instead of just telling Meta, 'Here's how much budget I have; spend through all of it every day,' … instead, you say, 'Here's the target ROAS or cost per acquisition that I'm trying to get, you tell me how to spend as much money as you can while maintaining this target.'' This strategy ensures that Faris invests the majority of his budget in his best-performing ads. 'That ends up being the most efficient distribution of your dollars on ads,' he says. This story was produced by Shopify and reviewed and distributed by Stacker.
Miami Herald
09-07-2025
- Business
- Miami Herald
5 ways to cut costs and take control of your business's bottom line
5 ways to cut costs and take control of your business's bottom line One of the draws of going into business for yourself is becoming the ultimate decision-maker. Not only do you have control over your career, but you also choose how things are run-from the everyday decisions to big-picture strategy. However, some things will inevitably be outside your control, such as larger economic conditions. And considering the impact they can have on a business's success, it's a topic on many entrepreneurs' minds. According to 2025 data from the U.S. Chamber of Commerce, 58% of business owners say that inflation is a top concern, which is no doubt also a contributing factor for the 35% concerned about revenue. While economic conditions are out of your control, plenty of other things are still within it. Finding ways to reduce your operating costs can create some flexibility in your budget to help you weather whatever the future brings. "Having more margin is a gigantic ecommerce cheat code," Andrew Faris tells Shopify. Faris is the founder of AJF Growth, a consultancy that helps scale direct-to-consumer brands. Knowing your numbers is step one: how much money is coming into the business, and how much is going out. Next, consider the following strategies to help reduce business expenses and improve margins. Reduce customer acquisition costs with product gifting Customer acquisition costs (CAC) can add up quickly, but gifting free products could shave your expenses significantly. Leah Marcus and Yasaman Bakhtiar, the duo who founded the pickle brand Good Girl Snacks, used this strategy to grow their business at a faster clip. Instead of paying influencers to talk up the brand on social media, they researched established content creators who were likely to genuinely enjoy their product-and sent them complimentary samples. The move paid off. "It's created a lot of buzz and allowed for a lot of sales, while still maintaining a zero-dollar CAC, because we just gift, we don't pay anybody," Marcus says on Shopify Masters. Similarly, when the clean skin care brand Tower 28 launched in 2019, founder Amy Liu sought out prominent beauty YouTubers, found their contact information, and sent each a free product sample-with a personal touch. "From the very beginning, I've always really believed in a handwritten note," Liu says. "And we would just send these packages out to people. Our open rates were certainly not 100%, but there were a few." When the COVID-19 pandemic hit, she started gifting the brand's popular SOS Daily Rescue facial spray to health care workers to help relieve maskne and other skin irritations. In turn, recipients posted before and after photos showing how well the product worked, which Liu was then able to re-post (with permission) on the brand's account. This social proof is one of the reasons Tower 28 is now a multimillion-dollar brand. Use AI to streamline your operations AI can save business owners significant time across their operations, especially in areas that don't require a human touch or a great deal of strategy. This can include everything from data entry to content creation to customer feedback analysis. Julianne Fraser, founder of the digital brand marketing consultancy Dialogue New York, built proprietary systems to help her company meet increasing client demands. "We knew that we didn't want to change that human-to-human approach in the way that we pitch, negotiate, and form the campaign narratives, but everything thereafter in terms of executing a campaign-from the contract process, the content approval, the invoicing, etc.-could be automated," she tells Shopify. "So we worked with a developer to help us streamline and automate that, and it really improved and increased our capacity substantially." In fact, the team was able to quadruple the volume of campaigns they were managing without having to scale their human capital. Fraser says this has also led to more fulfilling work for her team, freeing up more time for the creative aspect of their work-the ultimate win-win. Negotiate with manufacturers and vendors Supplier prices aren't written in stone. Taking the time to compare prices among vendors, negotiate for better rates, and revisit contracts to update terms could help bring down your operating costs. This is especially true if your business relies heavily on outside vendors, which is often the case for product-based businesses. Will Nitze, founder of the protein bar brand IQBAR, leveraged the company's increasing production volume to negotiate more favorable terms with his suppliers. "You go back to your manufacturer and you say, 'Hey, now that I'm producing 10 times more product, I need you to reduce my labor cost per bar from X to Y,'" he explains. Ultimately, Nitze pivoted IQBAR's supply chain from an outsourced "turnkey" model to an in-house operation during the pandemic. Not only did this give him greater control over production, but it also improved the business's margins. "Typically, they're marking up or taking a percentage of the total cost, as what's called a materials management fee," says Nitze. One downside of taking ownership of this process, though, is a greater administrative burden. If this sounds too extreme for your business, you don't have to go all in. You might choose to assume a small role in co-manufacturing, then leave the rest up to trusted suppliers. Build a small (but strong) team Business growth doesn't always require a huge employee roster. Staying lean can free up more money to put toward product development, marketing, and scaling your operations. For Danny Buck, cofounder of the men's jewelry line CRAFTD London, maintaining a small, mostly remote team has also allowed him to source talent from all over the world. "From a personal perspective, I didn't want a big team. So CRAFTD only has 15 people," he says. "We consider ourselves small and mighty. We're growing and will grow. We don't need a hundred people to do it." In some cases, restructuring is a matter of survival. When Brad Charron took the reins as CEO of the protein brand Aloha in 2017, he was immediately faced with some tough decisions. The company was in serious financial trouble, which prompted him to let go of the bulk of his 70 employees and transition to remote operations. Today, Aloha is a multimillion-dollar business and the team remains small, with about 20 employees. Intentionally spend on ads Building and maintaining your online presence can be a huge expense. And while digital ads can be effective, they can also be costly. Leon Hughes, partner at the London-based private equity firm Piper, cautions against paying for ads during a company's early days. Instead, he suggests first ensuring there's a market for your product. "Go to events, get out there, sell hard, learn about the product, make sure that it is fit for purpose and people are coming back," he says. That can help you decide if the upfront investment in paid media is worth it. When you are ready to put some budget into paid ads, a more manual approach could be key, says Faris, who leverages manual bids to get the best return on ad spend (ROAS) from his Meta ads. "The basic concept here is that instead of just telling Meta, 'Here's how much budget I have; spend through all of it every day,' … instead, you say, 'Here's the target ROAS or cost per acquisition that I'm trying to get, you tell me how to spend as much money as you can while maintaining this target.'" This strategy ensures Faris is investing the majority of his budget into his best-performing ads. "That ends up being the most efficient distribution of your dollars on ads," he says. This story was produced by Shopify and reviewed and distributed by Stacker. © Stacker Media, LLC.
Miami Herald
07-07-2025
- Business
- Miami Herald
8 strategies to keep customers coming back to your business
8 strategies to keep customers coming back to your business Building a loyal customer base is essential for any business. Not only is retaining an existing customer more cost effective than acquiring a new one, but forming authentic connections with your core audience can also provide additional benefits-from valuable data that inspires a new product line to compelling user-generated content from your most enthusiastic buyers. Consumers have a lot of choice when deciding where to spend their money, so how do you ensure your brand is one they keep coming back to? Shopify asked brands this very question. Their answers can help inform your own marketing strategy. 1. Incentivize subscriptions A strong subscription program can provide stable, recurring revenue month after month. The key is motivating new customers to opt in-while continuing to provide value to existing subscribers. It's a model that can be adopted whether you have a product- or service-based business. Sarah Vachon launched direct-to-consumer olive oil brand Citizens of Soil using a subscription framework, but it was when she rebranded the business model to an experience-based club that she really resonated with customers. "We changed the CTA on the site from 'Subscribe for refills' to 'Join the club,'" Vachon says on Shopify Masters. "That small step really transformed not only our sales, but how we thought about our whole business." Every month, subscribers get a different hand-picked (and ethically sourced) oil straight from a small farm. Each box also contains recipe suggestions and other extras, like tasting notes. Claudia Snoh, who cofounded the premium coffee company Kloo, knew early on that subscriptions just made sense. But during the brand's soft launch, she discovered that the price per bottle and shipping fees were deterring customers. So Snoh course-corrected, cutting the price and looking for ways to appeal to subscribers. "We have a $7 bottle discount, which is very unusual for a DTC brand," she says. "And, of course, we got rid of the shipping fee. Instead we upped our minimum quantity to two bottles per order, so we were able to really satisfy our customers' needs by reducing the price and eliminating the shipping fee, but it also actually made us more profitable on the unit economic side." Kloo subscribers also get exclusive gifts, invites to special events, and early access to new products. 2. Carve out a niche It might seem counterintuitive, but trying to appeal to too broad of an audience might cause your sales to fall flat. Consumers connect to authenticity, and brand messaging that tries to appeal to everyone could wind up pleasing no one. Getting hyperspecific and zeroing in on your core demographic can help you fine-tune your offerings-and have a greater impact. This has been a big driver behind Guru's growth. The organic energy drink company steers away from broad marketing campaigns and leans into communities that embody its brand values. Customer data is key here. "We identified that the pre-workout occasion with the running community really resonated with our consumers," says Shingly Lee, Guru's vice president of marketing. Guru took that information and partnered with one of Quebec's largest run clubs to connect with that niche and get authentic feedback on its products. "In the world of marketing, focus makes you bigger, not smaller," Lee says. 3. Reward customer spending More than 80% of consumers surveyed in 2023 by performance marketing agency Merkle said they'd likely purchase from a brand more frequently because of their participation in a loyalty or rewards program. The idea behind these programs is to gamify the shopping experience, allowing customers to bank points they can cash in for real rewards-whether that's exclusive savings or free products. The beverage company Liquid Death doles out rewards to customers who create an account and then buy products, engage with the brand on social media, write a review, or refer a friend. Points can be traded for free brand merch. Skin care brand Jaxon Lane follows a similar structure, offering 100 points for simply creating a rewards account. Customers can swap points for specialty discounts. "Acquisition costs for ad spend to get new customers has just risen exponentially over the last few years," Jen Yu, Jaxon Lane's cofounder, tells Shopify. "So we launched a loyalty program earlier this year. You can accrue points [when you] make purchases and refer friends." 4. Appoint ambassadors A type of influencer marketing, ambassador programs are typically longer-term partnerships rather than one-off ad deals. While the main goal of ambassador programs is to recruit new customers to your brand, they can also be used to reward your most loyal customers with perks like free products, discounts, and event access in exchange for content. And who better to speak on your brand than the people who believe in it most? "We honestly have always pursued influencers and ambassadors that really are fans of our brand. That has always been the strongest thing," says Alex Penfold, cofounder of Jaxon Lane. "Does this person love your brand? Are they with you on the journey? Do they really believe in you?" If not, potential customers will likely sense the inauthenticity and be turned off. Whether your ambassadors are professional content creators, enthusiastic customers, or industry experts, it's always a good idea to create guidelines to ensure they're posting at an agreed-upon frequency and putting out content that's aligned with your brand voice and values. 5. Host unique events Live events, whether they're held virtually or in person, can be a great way to build your community-and strengthen your relationship with your customers. These could include educational events like workshops, tutorials, or panels; insider access to new product launches; or meet-and-greets with industry leaders. You could even take it one step further and host a customer trip. Brands have historically reserved these exclusive getaways for influencers, but many are shifting to a customer-centered approach. In 2024, the hydration brand Waterboy whisked 12 loyal customers off to Cabo, and they have another trip in the works to Tulum. "Our customers are the ones who make our company what it is," says cofounder Mike Xhaxho. "Obviously we work with a lot of creators and influencers and really appreciate their help too, but oftentimes, they are fortunate to go on all these trips and customers usually don't. So how can we give back to customers?" Liquid Death put a different spin on live events, bringing its VIP Liquid Death Country Club experience to the 2023 music festival scene. The tour hit Bonnaroo, Coachella, and other major music events. Members got access to free products, tattoos and "horrorscope" readings. "People love drinking Liquid Death at concerts. We're huge with music venues," says Andy Pearson, Liquid Death's vice president of creative, adding that these events made for a natural brand fit. 6. Ask questions The best way to understand what your customers want is to ask them. That's where customer feedback comes in. When done right, it can unlock a gold mine of customer insights. No one knows this better than Grace Lee Chen, who founded Birdy Grey to connect bridesmaids with affordable dresses. Customer input was a driving force in developing the brand, which relied on everything from social media polls to traditional surveys to product reviews. "We really analyze feedback so that we can serve the customer," says Chen, who adds that Birdy Grey now has an Instagram broadcast channel that allows them to get direct insights from brides. Kloo's founders spent more than a year gathering feedback on products, sourcing, sustainable packaging, production, and logistics before launching. "We asked for lots and lots of feedback from customers," Snoh says. "I would text them, email them, ask to speak to them on the phone." But what matters most is what you actually do with that feedback. Both Snoh and Chen used it to inform their next steps as a business. That may nudge you to adjust your marketing plan or tweak your offerings to better serve your customer base-and give you a leg up over the competition. 7. Add personal touches One simple way to keep customers coming back is to make them feel special. To prevent each sale from feeling like an anonymous transaction, consider adding some personal touches to show your gratitude and welcome them to the brand. Their Jewelry, which specializes in sustainable, unisex accessories, provides a handwritten note with every order. "Those personal touchpoints make you feel seen. They make you feel heard," says cofounder Lauren Ludwig. "I just want everyone to have a really special experience when shopping with us, and I want them to know how much their order and their hard-earned money means to us." Jaxon Lane takes a page from the same book. "We're competing with Amazon, right?" says Yu. "We have free shipping we'll do for our customers that have ordered many times. We throw in surprise gifts for them. We write them handwritten notes. We do everything we can do to help our customers be successful in their skin care journey and just enjoy shopping with us." 8. Expand your product line A limited range of offerings could put a ceiling on your growth. Marc Barros, founder of Moment, doesn't know if his business would be thriving today if he hadn't expanded his product line. The brand first specialized in mobile photography equipment but has since branched out to lenses, accessories, digital courses, and more. This very much reflects the journey of its customers. Many started by filming videos on their phone but are now shooting on a camera or exploring filmmaking. "It's been fascinating seeing the growth of the customer evolution, and we've just grown Moment to keep up with it," says Barros. "Otherwise, if we had stayed with probably the original five or six products, I'm not sure we'd still be here." When Kristen Pumphrey, cofounder of P.F. Candle, noticed a subsection of customers dropping off in favor of more luxury candles, she created a premium line to capture their attention. She also believes in the power of saying yes to opportunities-even if you aren't sure how to do it. She did just that when Urban Outfitters asked P.F. Candle to make incense. "And now incense is such a fast-growing product segment for us," she says. "People are obsessed." The company has also grown to sell reed diffusers, room and linen sprays, candle accessories, and more. This story was produced by Shopify and reviewed and distributed by Stacker. © Stacker Media, LLC.
Miami Herald
30-06-2025
- Business
- Miami Herald
Crafting connections: A business owner's guide to finding your customer base
Crafting connections: A business owner's guide to finding your customer base There's a saying among entrepreneurs: "Simple, but not easy." The blueprint for building a business is simple: Develop a great product, reach customers who want to buy it, repeat. But the execution isn't always easy. Even once you have a great product, finding your target audience-and converting them into paying customers-can be a challenge. For those willing to think outside the box, there's still plenty of opportunity to build a loyal customer base. Shopify talked to seven business owners about their best customer acquisition strategies. Take a page out of their playbooks to find your own community. 1. Build pre-launch demand online Testing ideas and building demand before going into production can help ensure you're investing time and money in the right things. For example, hydration brand Waterboy's founders Mike Xhaxho and Connor Saeli focused on telling their story on TikTok before officially launching their product. They shared who they were and how their single-serve hydration sticks were filling a gap in the market. It resonated: They gained 7,000 followers after their first video-and only grew from there. Next, they ran a presale campaign, allowing people to place orders for their product before it was made. It was a huge success. "We decided to do a presale to see if people were actually willing to buy and spend the money," Xhaxho says on Shopify Masters. "That's when we sold what would have been the entire first production run in the first hour." This strategy has benefits beyond the buzz: Presales give a business crucial early cash for production and brand-building. In Waterboy's case, the success of the team's presale gave them the validation-and capital-to buy the domain Not only did this boost the brand's public-facing legitimacy, but it also prevented competitors from taking the domain for their own gain. If you're not ready to commit to a full presale for your idea, you might consider crowdfunding. Running a crowdfunding campaign through a platform like Kickstarter provides many of the same benefits as presale: You get to validate your idea, build groundswell buzz, and acquire customers and cash. The time-bound nature of crowdfunding can help convince potential customers to take a chance on you. And it has the added benefit of de-risking for both the customer and the entrepreneur-if your Kickstarter doesn't hit its target, it automatically returns backers' money. This was the approach taken by camera brand Moment, which raised its initial funds on Kickstarter. That DIY approach is now part of the brand's DNA. According to founder Marc Barros, Moment still uses crowdfunding about once per year to get particularly ambitious projects off the ground and gauge interest-without committing funds. "When you do a harder project, there's a lot of financial risk," he says. "We do crowdfunding because it helps us figure out: OK, we're about to press the manufacturing button. Is this worth doing or not?" The interest drummed up via crowdfunding validates the product and signals that it's worth the investment. 2. Connect with customers in person Part of the power of modern commerce is the ability to reach your customers online, but it's not the only way. In-person events allow you to meet customers face to face, get real-time product feedback, and ultimately build a deeper brand relationship. Craft fairs were crucial to the early success of P.F. Candle. "The amazing thing about craft fairs is that you're put in front of thousands of people who are your audience," says cofounder Kristen Pumphrey. "When do you ever get that chance?" These in-person touchpoints also provide P.F. Candle with crucial audience insights. When Pumphrey went to shows with her husband and cofounder, Thomas Neuberger, she noticed there weren't many products that appealed to men. "I got this idea when I was developing the look of the container candle to create something that was unisex," she says. "And that actually created our niche in the market. A lot of our scents are unisex, and because of that we were able to have this large male customer base. When we started, I think it was probably 5%, 10%, and now we're up to 30%." In-person events are also crucial for building retailer relationships. Travel bag brand Aloha Collection's founders put a large portion of their initial funds into attending the Magic fashion trade show in Las Vegas, and it paid off. "We ended up getting some of our very first accounts that are still our customers today," says cofounder Heather Aiu. "That was 10 years ago already." The right retail partners are not only large customers on their own-they showcase your product to their customers. For a small business, this can be a massive multiplier in reach. 3. Spark interest with education As a business owner, you know what makes your product great. Share that information with your audience-especially if you're introducing a new product into the market or reintroducing an existing product to a new audience. This was the case when Sugardoh introduced Gen Z to at-home body sugaring, the hair-removal practice that, in the U.S. at least, is largely done at salons. Sugardoh's founder, Aliyah Marandiz, reached a younger generation with a TikTok marketing strategy focused on sharing sugaring tutorial videos that felt authentic, satisfying, and snappy. In other words, not like typical educational marketing. "The best education is education that people don't know they're actually learning from," says Marandiz, whose videos' ASMR-like qualities capture viewers' attention. "They're watching because they're sucked into that satisfying element. Then, at the end, they're like, 'Wait, I just learned how to sugar.'" This strategy has two customer acquisition benefits: The videos' viral reach creates new interest for their products, and the educational content turns that interest into purchases. 4. Drum up user-generated content with gifting Content that showcases real customers' experiences with your product is a compelling marketing tool, especially when it happens organically. If you're operating at scale, some of your happy customers will naturally share their experience on social media and review sites, but smaller brands can kickstart this type of testimonial, known as user-generated content (UGC), with intentional gifting. Amy Liu, founder of beauty brand Tower 28, saw an opportunity to provide a valuable service-and earn UGC in the process-during the COVID-19 pandemic, when masking was the norm. Her team noticed an increase in customers recommending Tower 28's SOS Daily Rescue facial spray. "All these people were wearing masks, especially essential workers, right?" Liu says. "People were getting 'maskne' for the first time in their lives. We saw people saying, hey, this spray is really changing my skin." When she realized how helpful the spray was for essential workers, Liu gifted hundreds of bottles to health care workers, who would often post before-and-after photos on social media. Tower 28 then used these images (with permission) on its website as social proof of the spray's efficacy, building audience trust and helping drive conversion. 5. Pursue brand-building retail partnerships For many brands, getting their products into retail stores means one thing: scale. Once you have a retailer on board, you have a partner in acquiring new customers-you both win when someone buys. But there are good reasons to pursue smaller, more niche retailers along with larger ones. For one thing, they can be an accessible starting point for growing brands; a local museum or bookstore will likely be more receptive to your calls than a global company's head buyer. Additionally, the right retail relationships don't just introduce you to new customers, they create a halo effect, associating your brand with the retailer in the minds of your customers. If a favorite local retailer has a great reputation, that customer goodwill rubs off on your brand when the store stocks your product. Original Duckhead sells its sustainable umbrellas where their artful details are sure to be appreciated, such as New York City's Museum of Modern Art, London's Natural History Museum, and the Kew Royal Botanical Gardens. Actually getting this type of retailer to stock your product may require finesse. "It's really important to not be afraid to just call and email," says founder Morgan Cros. Typically, her team expects eight to 10 touchpoints before a retailer commits. "That's what I like to tell my team so that they don't get discouraged," she says. "Like, OK, you've only reached out five times. You've still got to keep going." But the benefits for Cros are undeniable: Pitching products to a specialty store allows for more leeway to negotiate flexible terms. She's gotten her umbrellas in front of a sizable audience without requiring the retailer to make a major commitment. Her advice for anyone pursuing the same strategy: Make it easy for retailers to say yes and hard to say no. "I made it so the barrier to entry was very low," she says. "Very low minimum [order quantities], but still giving them great margins … And then I solved a few problems that they might have: If it didn't sell, I would do a return, so I made it really risk-free for them." 6. Think big picture Most customer acquisition strategies focus on newcustomers. But as brands grow and evolve, retaining those customers is just as important and potentially more lucrative. There are many ways for businesses to drive revenue from repeat customers. For example, a strong email strategy and a loyalty program can be some of an acquisition team's highest return on investment (ROI) activities. But one of the most impactful ways is to listen to your customers and evolve alongside them-tapping them as customers for new products tailored to their interests. Barros shares how Moment's product line evolved from iPhone accessories to selling everything a photography enthusiast needs: "We've organically evolved based on what the customer's done. When we started making just phone products, there was a struggle, which is that the repeat purchase rate is once every 18 months," Barros says. "By expanding into the rest of the things creatives need, it allowed us to grow and keep the business growing." This allowed both the business and its customers to grow. "A lot of our customers have gone from, 'I shot on my phone [to] now I shoot on a camera, now I'm a filmmaker, now I'm a producer and a [director of photography],'" Barros says. "It's been fascinating seeing the growth of the customer, and we've just grown Moment to keep up with it. If we had stayed with the original five or six products, I'm not sure we'd still be here." This story was produced by Shopify and reviewed and distributed by Stacker. © Stacker Media, LLC.
Miami Herald
09-06-2025
- Business
- Miami Herald
5 creative ways to fund your business
5 creative ways to fund your business Launching a successful business takes a great idea, but it also takes capital to turn that idea into a reality. While some businesses require little to no funding, it's likely you'll need at least a little seed money to get off the ground-and more as you grow. Traditional funding options, such as bank-provided business loans, can be a powerful tool for established businesses, but their requirements typically make them unobtainable for newer operations. Instead, entrepreneurs often have to get creative, turning to crowdfunding platforms, presales, and grants for the funding they need. Shopify spoke with seven founders about how they raised the capital they needed without traditional debt financing. Investors If you've ever seen an episode of "Shark Tank," you have a general idea of what it means to bring on an investor. Rather than a loan you have to pay back, investors-typically professional firms or wealthy individuals-provide capital in exchange for an ownership stake in the business. Cofounders Vicky Pasche and Charisse Pasche used a combination of funding strategies to get gender-neutral fashion brand Dapper Boi off the ground. That included an angel investor whom Vicky met through a business mentor. "She had introduced me to our very first lead investor who signed off on our first big investment of $250,000," Vicky Pasche says on Shopify Masters. She adds that patience is key, as building these relationships can take time to materialize. She suggests having a strong pitch deck ready to go-and being willing to nurture every warm introduction you make. Crowdfunding With crowdfunding, your investors are lots of individual donors, many of whom kick in a relatively small amount of money. Crowdfunding platforms like Kickstarter and Indiegogo connect entrepreneurs' campaigns directly to investors. From there, business owners can collect funds, typically in exchange for some incentive, such as a discount, free product, or even an equity stake in the company. David Levy, founder of Bola Grills, used this strategy to secure about $22,000. "I would highly recommend crowdfunding to anybody that's starting a project, the reason being that you're able to sell the idea and actually get some revenue without having a product," he says. Similarly, Aloha Collection cofounders Heather Aiu and Rachael Leinaʻala Soares raised about $6,000 from a Kickstarter campaign before they launched their waterproof bags. They used that money and 200 samples from their manufacturer to rent a booth at a trade show and secure some of their first customers and distributors. That isn't to say that crowdfunding is easy. Levy adds that trust is critical-donors need to have faith that you're going to follow through on your idea. To learn more about what makes a campaign successful, try following other compelling crowdfunding campaigns and studying their strategies. This has worked well for Jamey Stegmaier, who has run upward of eight successful crowdfunding campaigns for his board game company, Stonemaier Games. "Observing and participating in other campaigns is the best way to understand which tactics you want to emulate and which you want to avoid," he says. Friends and family Your personal network can be a powerful tool when you're in startup mode. Friends and family funding is a legitimate way to fundraise, and the people who know you best might believe in your vision more than anyone else. You can also tap your professional network. If you've made a name for yourself within your industry, and you're launching a new business within the same field, think about leveraging the relationships you've built along the way. Amy Liu, founder of the clean skin care brand Tower 28 Beauty, did exactly that. "I feel like I had maybe the easiest time fundraising of anyone I've ever known," she says. "I raised $500,000 totally pre-launch with nothing but my resume and a deck, and honestly, a very different deck than what I ended up launching." Liu credits this to her 20-plus years of industry experience, which built immediate trust with her network in the beauty world. Asking your personal contacts for cash can feel uncomfortable, so Liu suggests taking a softer approach. "Instead of asking people to invest and give you money, ask people for advice," she says. "Everybody loves to give advice, and then they will tell you, 'I want to invest.'" If they don't, you can ask them if they know anyone who might be interested in this opportunity-they might even make an introduction. Presales If you're running a product-based business, preorders can unlock a wave of capital. Customers pay upfront, providing the funds necessary to fulfill orders and scale the business. Not only do preorders prevent you from spending money on inventory that doesn't sell, but they can also validate market demand for your product and help you gather valuable data about what your customers want. This approach was a game-changer for hydration brand Waterboy. After gaining traction on TikTok, cofounders Mike Xhaxho and Connor Saeli launched a presale campaign to see if that social media popularity would translate to actual sales. "That's when we sold what would have been the entire first production run in the first hour," Xhaxho says. Limited-time, single-product presales were also a powerful business driver for Dapper Boi, providing the capital to fund production, while also building customer excitement. "I think what was key was that FOMO, you know, that sense of urgency for customers. They wanted to get in on it," says Vicky Pasche. "That's how we had to bootstrap and people were ready and waiting for every single campaign and willing to wait also for the production to be complete." Grants Small business grants are unique because they offer funding that doesn't have to be repaid-and you generally won't have to give up any equity. Evan Quinn and George Youmans, the cofounders behind beverage company Hiyo, signed up for a venture competition sponsored by UCLA-and won first place, securing a $40,000 cash windfall. "We did our first production run because, as a food and beverage product, you've got to make something," Quinn says. Hiyo gained momentum and went on to secure funds from other investors, including one of the judges from the competition. There's a wide range of grant options out there, but they're also highly competitive. Expanding your search might lead you to untapped opportunities, like grants that serve specific types of entrepreneurs-whether that be college students or local residents. Sisters Niki and Ritika Shamdasani, who cofounded the South Asian-inspired apparel brand Sani, took this approach to raise $100,000 through college grants alone. That included $25,000 from a pitch competition at Smith College. And they didn't stop there. "I think for anyone, there are probably local opportunities, whether at the college level, the state level, or the county level, and we would just look for as many of those as we could," Niki Shamdasani says. They suggest researching each organization's core values and past winners before applying to better understand what they're looking for-and help you craft a stronger pitch. This story was produced by Shopify and reviewed and distributed by Stacker. © Stacker Media, LLC.
