Having achieved monetary success, many entrepreneurs purchase a giant home, maybe an costly car. However not Steve Chou. He co-owns a thriving ecommerce enterprise, runs a rising YouTube channel, and teaches well-liked programs from his “My Spouse Stop Her Job” web site.
And he loves frugal dwelling. “Being frugal and spending much less is nice for my peace of thoughts,” he instructed me.
That is my second interview with Chou. Two years in the past we addressed Bumblebee Linens, his ecommerce firm. Right now’s dialog covers stress, high quality of life, and, sure, frugal dwelling.
The audio for our total dialogue is embedded under. The transcript is edited for size and readability.
Eric Bandholz: You could have your programs, YouTube channel, and ecommerce enterprise. Plus you’re writing a ebook. How do you do all of it?
Steve Chou: I’ll let you know my schedule. My typical work week begins on Sunday once 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 turn out to be boring for me. Google needs solely the reply. Offering extra than simply the reply might damage natural rankings.
Mondays are once I do most of my work. Utilizing a instrument equivalent to Ahrefs, I have a look at what my rivals are writing about after which choose some key phrases. I’ve a spreadsheet with tons of 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 begin their very own way of life 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 take care of stress?
Chou: There have been two intervals as an entrepreneur the place I had stress. The primary was once 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 consistently. Our marriage wasn’t good. Now we have since agreed to not obsess over development due to the stress.
The second interval was throughout Covid. We promote objects for weddings and occasions. Lots of our prospects are airways and motels. Covid decimated these companies. On March 23, 2020, our income dropped 70%. We had workers 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 properly 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 must know that if my companies had been to instantly cease, I might nonetheless stay with out worrying. So, that’s why I preserve bills low. I attempt to not spend some huge cash or enhance my way of life.
I have a look at my internet price commonly. I must 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 12 months. Stuff doesn’t make me comfortable. I’ll spend cash on experiences, however not issues.
Bandholz: Bumblebee Linens. How do you purchase prospects?
Chou: Our focus is especially on Fb and Google Advertisements. Our common order worth is $60. Virtually 50% of our prospects spend lower than half of our AOV, and solely 10% spend greater than twice that quantity. A lot of the smaller transactions come from Fb. However the 10% that spends double represents nearly 50% of our income. Most of these consumers come from Google Advertisements.
Nevertheless, Google Advertisements will not be straightforward to scale. We switched to Efficiency Max about three months in the past, and it’s been doing properly. It requires little or no mind energy. However, sadly, it sucks up site visitors for different Google campaigns. My return on funding from Google Advertisements was greater earlier than Efficiency Max.
I’ve totally 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 wedding ceremony planners and are available in by way of Google.
After their preliminary buy, we’ll contact them by way of cellphone, 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 yow 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.