LEARNING HOW TO TAKING RISKS ---081
Starting a business is the biggest gamble you can take. You don’t know whether the business will fail or succeed. If it succeeds,you’re quite lucky. The odds of raising a successful business is very slim. You have to invest time and capital for any results to show up.
Where does the capital usually go? Well, when you start off, you need to have inventory. The biggest risk of stocking inventory is having too much. If you can’t sell it, then it’s a problem.
When Linkstyle just started, we had a large burn rate that was much higher than anticipated. The ads were necessary in order to keep the business alive, however it was eating away at our cash.
Managing an ad budget is difficult. If you invest too little, there won’t be any results, If you invest too much, it needs to produce results, otherwise, it isn’t worth it. Finding the right balance is hard, especially when the business is new.
We learned one thing. Demographics. Demographics are the targets of your audience. You have to narrow down the demographics so that the ads will be more effective. If you show a cat ad to a dog owner, it will be ignored instantly. That’s how it works.
Knowing our audience comes from many factors. Our team has worked with customers for years and has worked closely with them to learn who and where the orders are generally purchased from. At Linkstyle, we not only do our best to sell orders, but we put in efforts to learn our customers in order to provide outstanding service and find more reach to the right people.