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Having achieved monetary success, many entrepreneurs purchase a giant home, maybe an costly automobile. However not Steve Chou. He co-owns a thriving ecommerce enterprise, runs a rising YouTube channel, and teaches standard programs from his “My Spouse Give up Her Job” web site. And he loves frugal dwelling.
“Being frugal and spending much less is nice for my peace of thoughts,” he advised me.
That is my second interview with Chou. Two years in the past we addressed Bumblebee Linens, his ecommerce firm. As we speak’s dialog covers stress, high quality of life, and, sure, low private overhead.
The audio for our complete dialogue is embedded beneath. The transcript is edited for size and readability.
Eric Bandholz: You may have your programs, YouTube channel, and ecommerce enterprise. Plus you’re writing a e-book. How do you do all of it?
Steve Chou: I’ll let you know my schedule. My typical work week begins on Sunday after I’ll put together an article. I’ve a author and editor now, however I add my persona. After Google modified its algorithm a few years in the past, writing has develop into boring for me. Google desires solely the reply. Offering extra than simply the reply may damage natural rankings.
Mondays are after I do most of my work. Utilizing a instrument comparable to Ahrefs, I take a look at what my rivals are writing about after which choose some key phrases. I’ve a spreadsheet with a whole bunch of matters. The author often creates an overview on Mondays, and I’ll approve it.
On Mondays, I’ll additionally movie a YouTube video for my channel the place I educate individuals learn how to begin their very own life-style ecommerce companies. I’ll often publish a podcast on Mondays, too.
On Tuesdays, I put together a lecture for the 2 programs I run, and I’ll solely work from 8:00 a.m. to midday or 12:30. Wednesdays, I educate these lessons.
Thursdays, I work on duties for Bumblebee Linens, our ecommerce enterprise. Fridays are my considering days, the place I plan long-term objectives and duties for the next week.
Bandholz: How do you cope with stress?
Chou: There have been two durations as an entrepreneur the place I had stress. The primary was after I tried to hit seven figures in income with Bumblebee Linens. I went all out to succeed in this silly quantity. My spouse and I fought always. Our marriage wasn’t good. Now we have since agreed to not obsess over progress due to the stress.
The second interval was throughout Covid. We promote gadgets for weddings and occasions. A lot of our prospects are airways and inns. Covid decimated these companies. On March 23, 2020, our income dropped 70%. We had staff and warehouse lease. Thankfully, we recovered.
We not too long ago purchased a constructing, which suggests no extra lease checks.
Bandholz: What’s your tolerance for debt?
Chou: It really works nicely when the going is sweet however not when there’s a downturn. I’m debt free.
Right here’s my philosophy on cash and frugality. Being frugal and spending much less is nice for my peace of thoughts. I have to know that if my companies have been to abruptly cease, I may nonetheless dwell with out worrying. So, that’s why I hold bills low. I strive to not spend some huge cash or improve my life-style.
I take a look at my internet value often. I have to see it rising. That’s how my thoughts works. Now we have loads of cash within the financial institution and may cowl our youngsters’ school. We don’t spend a lot. Our entire household spends perhaps $100,000 a yr. Stuff doesn’t make me pleased. I’ll spend cash on experiences, however not issues.
Bandholz: Bumblebee Linens. How do you purchase prospects?
Chou: Our focus is principally on Fb and Google Adverts. Our common order worth is $60. Nearly 50% of our prospects spend lower than half of our AOV, and solely 10% spend greater than twice that quantity. Many of the smaller transactions come from Fb. However the 10% that spends double represents virtually 50% of our income. Most of these consumers come from Google Adverts.
Nevertheless, Google Adverts just isn’t simple to scale. We switched to Performance Max about three months in the past, and it’s been doing nicely. It requires little or no mind energy. However, sadly, it sucks up site visitors for different Google campaigns. My return on funding from Google Adverts was greater earlier than Efficiency Max.
I’ve completely different Efficiency Max campaigns. Most are set for a 3-times return on advert spend. I do know I can attain occasion planners with Google. We search for individuals who purchase an abnormally great amount of linens. Likelihood is these individuals are occasion or marriage ceremony planners and are available in via Google.
After their preliminary buy, we’ll contact them through telephone, asking, “Are you an occasion planner?” We even have a post-purchase survey that asks, “Are you a enterprise?” If sure, we attain out to them with a coupon code and a devoted account rep.
Bandholz: How can listeners join with you?
Chou: Take a look at our web site, MyWifeQuitHerJob.com, the place you will discover our podcast and programs. The YouTube channel is @MyWifeQuitHerJob. Our ecommerce web site is BumblebeeLinens.com. My Twitter is @mywifequit, and I’m on LinkedIn.
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