When we started Gorilla Socks, our objective was to use as little start up cash as possible to kick-start the business, and slowly build it from its foundations.

This was our first company and we made some naïve mistakes, which burned a lot of our initial cash. On this post I would like to discuss two errors to avoid like the plague.

Print Magazines are dated

On our second month in business, a big fashion magazine approached us. They contacted us via Facebook Messenger. We offered us the opportunity to be featured for three hundred dollars. For a novice, this sounded like a great idea. What could go wrong? The answer is: quite a lot. This is why I suggest you avoid paid ads on printed magazines (unless its editor decides to write a FREE piece about you)

Paid ads do not guarantee an article about your company on page one, not even on page twenty! Your high resolution image, with another thirty will be piled on the last two pages – the same pages that no-one ever looks at. I don’t!

A paid ad does not guarantee a feature on the magazine’s online version. This is a big point. To grow organically and rank in Google, you have to build backlinks especially reputable ones.

Three hundred dollars for a start up can actually go a long way. It can be used to advertise on FB, Instagram or just paid blog posts on reputable sites.

If you are too small, stay away from Fulfillment Centers

Unless you are starting with a big wallet and huge amounts of merchandise, Fulfillment Centers are probably not for you. We started Gorilla Socks with approximately three thousand pairs of socks. What we never really thought through was the operations side of the business. We assumed we could just drop off our socks at the door of a third party and expect a superb service. As you may have guessed, things did not turn out as expected. This is why:

If you are a Fulfillment Center, you work on volume. Only big players can bring you volume. As a startup we were not a priority.

Our products were being sent with delays which affected our customer satisfaction. On our website we pledge to send socks out within 2-3 business days.

Fixed costs were another concern. As a startup you do not have a steady cash flow at the outset. Some months will be great, but others will be horrible. Regardless of your performance, the Fulfillment Center will have fixed costs which weigh heavily on your bottom line.

After a few months with a Fulfillment Center and disappointed with the service, we decided to bring the socks back to our storage unit in Manhattan. We decided to run our own fulfillment. Today when a customer places an order, we prepare the socks, package them and ship them with USPS. You have two options: buy a printer and a weight scales and create the Bill of Lading at home or just pop over to the closest USPS office. Today we are able to meet customer satisfaction and keep control of our fixed costs.

Conclusion

Cost control and smooth operations is key if you want your start up to become more than just that. Marketing today is very different from what it was twenty years ago. A renowned international print magazine sounds great, but the reality is that it will do very little for your business. I would suggest Growth Hacker Marketing: A Primer on the Future of PR, Marketing, and Advertising for whoever wants to read more on the topic.

On the operation side everyone’s dream is to start big. Yet, that’s not always the case. Sometimes it takes time to get your brand known and build traction. As you build your company you want to make sure that your customer receives the best possible service – which only you the owner can give – and keep your fixed costs to a minimum. Good Luck!

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