Starting a business born from the chaos of 2020 with no business plan, marketing budget or any experience in e-commerce or retail, it’s something I would not recommend. However, with some determination to make something extraordinary out of a very simple concept like gifting, I am a true believer that anyone can make a business boom given the right timing and will power.
In May 2020, my wife Sarah-Jane and I, like many others, found ourselves navigating uncharted waters during the pandemic. Our normal 9 to 5 routines were in disarray, and we quickly realised there was only so much sourdough we could bake in lockdown. One day, needing to send a gift to a friend, we scoured Google for the perfect gift hamper but found nothing that tickled our fancy. The gift hamper industry was saturated, but there was a gap for something cool, local, and boutique. And thus, Good Day People was born. Our original goal was to sell a hamper a day; after the first 12 months, we had sold over 10,000 gift hampers across Australia from a spare bedroom we had.
I get asked the age old question of “do you have any regrets” but given I love to fail forward, I wanted to share some insights on 10 things I wish we knew before staring our business Good Day People.
Pick The Right Customers and Stay True To Yourself
Nobody wants to sell ice to eskimos. The real reason we started Good Day People is that we saw a market flooded with gift baskets that were a little daggy. We knew our target market was not nannas (no offense nannas, we love you) but rather 25 – 45 year olds who loved quality over quantity, valued local good and appreciated design as well as a fun. We are socially and environmentally conscious. We often get customers who want things that aren’t on brand for us. In these situations we just stay true to who we are as we know when someone opens a gift from Good Day People we want to ensure they experience the Good Day People experience. Not every customer will be a good fit, and that's okay.
Be Agile, Not Fragile
I once heard a physio say you need to keep agile, or you'll get fragile. Never stop learning. Whether it's a new skill, advice from a mentor, or feedback from customers, suppliers, or business partners, keep an open mind and be willing to pivot quickly.
Cash is King
We've all heard the saying "cash is king," and trust me, it's true. In the early days of Good Day People, we faced serious cash flow challenges. Running out of cash is a tough reality many start-ups face, especially boot strapped ones. Accelerated growth can be both a blessing and a curse. We had to get creative and make some hard decisions to sustain our unexpected growth during the lockdowns. We increased prices, negotiated better rates with suppliers, secured 30-day payment terms, and even got a business credit card to give us an additional 30 days. Being conservative with taking on risk, such as increasing overheads too quickly, helped us manage through uncertain times. We rented 6 bedroom house for a year that we lived in instead of making a 3 year commercial lease commitment.
Build a Brand That Customers Love
We carved out a niche in our industry with a brand that has a fun tone of voice and personality with clear mission – make it a Good Day through our gifts. We champion our amazing local Australia brands but also our customers. We love to celebrate them for being generous and kind through the personal act of gifting.
Think Big
When times are tough, it's easy to feel overwhelmed and discouraged. But remember, nearly all challenges can also be opportunities in disguise. By seeking out hidden opportunities, tapping into your strengths, and staying resilient, you can turn even the toughest times into a launchpad for success. At Good Day People, we turned a pandemic-induced pause into a thriving business that’s all about mobilising generosity and making it a Good Day for others, one bougie gift at a time. From our small goal of a gift a day from a spare bedroom to a warehouse with staff and over 50,000+ gifts sold, it’s good to continually think big and dream.
Self-Discipline is Harder Than You Think
Maintaining discipline, especially when you're your own boss, is a real challenge. It's easy to get distracted or procrastinate or just be motivated. Set clear goals and stick to a routine to stay on track. Starting Good Day People with my wife Sarah-Jane has meant we both continue to keep each other accountable and encouraged.
It Can Get Lonely Sometimes
Running a business can be isolating. Find ways to add human interaction into your day, whether it's networking events, coffee with fellow entrepreneurs, or simply catching up with friends and family. We have found mentorship a great way to not only invest in our business but in us. Upskilling is worth every cent and has meant we have saved money to help us make money.
Test and Measure - Be Bold
Don't be afraid to experiment. Test different strategies, products, prices and measure the results. Being bold and willing to try new things can lead to unexpected successes. We launched a new range one year which brought our entry level price from $55 to $35. I was really nervous that people would start spending less given we gave them a cheaper option but given the economy at the time was struggling, the amount of first time customers that bought from the new range far out grew previous stats but it also meant people were buying more entry level gifts for more people meaning more of our products were reaching gift recipients who would then purchase from us. It was a massive win and today that range still proves to be one of our most popular.
Competitors Make You Better
Man-oh-man we have had so many copy cats since we launched. Almost blatant rip offs. When I find them I get super annoyed and frustrated but what my wife tells me all the time is that we need embrace competition as its a motivator to improve and be better. Competitors push you to innovate and offer better products and services, ultimately benefiting your business and your customers.
Enjoy the Wild Ride of Small Business!
Nothing can prepare you for the rollercoaster ride of small business. Starting and running a business is a wild ride full of highs and lows. Enjoy the journey, celebrate your wins, learn from your mistakes, and keep pushing forward. Sometimes the win isn’t always about your year on year growth, sometimes it’s just that you managed to pay the rent that week. Be kind to yourself and come back to your “why” when the times are tough. You got this!
Written by Jacob Leung, Co-Founder of Good Day People and keynote speaker at Online Retailer Conference in Sydney, 24th July. Jacob’s session will focus on ‘When the Going Gets Tough, the Tough Gets Going’ with more information available here.
