Recently, we sat down with Chris from Coinstop to find out how a business idea, six mates and a desire for a new start has grown into Australia’s leading Cryptocurrency hardware wallet provider.
For those that aren’t on the bandwagon… hardware wallets are a means of storing digital, blockchain based cryptocurrency (digital money) securely, and offline.
In order to get there, the guys at Coinstop have hacked away at some interesting ways to grow their business to become such an eCommerce success story…
- Ride the product market fit wave
The Coinstop guys were looking for a product in the market and they couldn’t find it in Australia – that is how the business was born. If they were after it surely someone else in the market wanted it as well… they “injected a little bit of capital, bought a couple of products.” They wanted to “allow others like ourselves who were struggling to find this particular product and give them an avenue for that to happen.”
If you have done the research and have found a new product to stock that is well targeted to a specific customer, solving a specific problem at the right time – it’s a perfect recipe for growth. The next problem will be keeping up with demand!
- Reinvest into the business
Coinstop is still funded by the founders. Even though it is doing really well after two years of operation they still invest back to keep growing.
“We’ve done everything on our own back with a small investment. No capital injection from Richard Branson or anything like that. It was a risk that we counted all the pennies we had. We bought as much product as we could. And then we’ve just been growing off that revenue month on month without any additional funding.”
Even if you are doing well, it pays to reinvest in great ideas. More product inventory and streamlining your business processes will serve you well when orders start ramping up.
- Surround yourself with a diverse team
The business was formed with people who could add value. “75% of our team actually came from a logistics background. We’ve worked in warehouses from forklift drivers to managers, so we take a lot of our experience from our past.” For Coinstop, having a team with eCommerce and automation experience, took a lot of the guesswork out of maximising efficiencies as the business has grown.
Who you work with and who you ask for help can really help you grow your business. If you have a small team bring in a mentor in an area which you could use some support in.
- Upskill yourself
Coinstop learn the most from their mistakes. Being their first e-commerce platform business, the team had a go themselves at creating the website. “There’s a lot of tools that allow you to do that quite easily now. So you know, we took advantage of that. Lot of drag and drop features.”
Navigating and learning new things builds capability and confidence, while keeping consulting costs down. Google is your friend! Chances are someone has had a similar problem to you and it could be an easy fix!
- Path towards automation
As the business grows, automation will increase efficiencies, saving time and money. Along the growth journey, Coinstop continuously looked for ways to “automate the business” in order to free up time to scale and grow.
Are there ways in your business that you can automate things to inspire business growth? Maybe with your social media, inventory management or emails to customers.
- Know your numbers
When Coinstop first started they were actually running at a loss, because they didn’t do a proper cost analysis. Part of learning and starting your own business is going through those hurdles, and overcoming them.
Have you created financial goals and are you hitting them? Understanding (and limiting) your costs is vital to know whether you are experiencing the right rate of growth.
- Being passionate!
Being persistent and having a passion is a must for growth, “as long as you have that passion and drive, everything else doesn’t really matter that much. Because you know in the end if you can continue to work you will overcome those obstacles.”
Now get out there and kick some eCommerce butt!