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 in style programs from his “My Spouse Stop Her Job” web site. And he loves frugal residing.
“Being frugal and spending much less is nice for my peace of thoughts,” he informed 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 under. The transcript is edited for size and readability.
Eric Bandholz: You’ve got your programs, YouTube channel, and ecommerce enterprise. Plus you’re writing a ebook. How do you do all of it?
Steve Chou: I’ll inform you 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 character. After Google modified its algorithm a few years in the past, writing has turn into boring for me. Google needs solely the reply. Offering extra than simply the reply may harm natural rankings.
Mondays are once I do most of my work. Utilizing a software corresponding to Ahrefs, I have a look at what my opponents are writing about after which decide some key phrases. I’ve a spreadsheet with tons of of subjects. 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 train folks the best way 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 train these courses.
Thursdays, I work on duties for Bumblebee Linens, our ecommerce enterprise. Fridays are my considering days, the place I plan long-term targets 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 continuously. Our marriage wasn’t good. We’ve got 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 clients are airways and resorts. Covid decimated these companies. On March 23, 2020, our income dropped 70%. We had staff and warehouse lease. Happily, we recovered.
We not too long ago purchased a constructing, which implies 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 have to know that if my companies had been to immediately cease, I may nonetheless stay with out worrying. So, that’s why I maintain bills low. I strive to not spend some huge cash or enhance my life-style.
I have a look at my internet value recurrently. I have to see it rising. That’s how my thoughts works. We’ve got loads of cash within the financial institution and might cowl our youngsters’ school. We don’t spend a lot. Our entire household spends possibly $100,000 a yr. Stuff doesn’t make me comfortable. I’ll spend cash on experiences, however not issues.
Bandholz: Bumblebee Linens. How do you purchase clients?
Chou: Our focus is principally on Fb and Google Adverts. Our common order worth is $60. Virtually 50% of our clients 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.
Nonetheless, Google Adverts just isn’t 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 visitors for different Google campaigns. My return on funding from Google Adverts was increased 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 wedding ceremony planners and are available via Google.
After their preliminary buy, we’ll contact them through 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: Try our web site, MyWifeQuitHerJob.com, the place you’ll find our podcast and programs. The YouTube channel is @MyWifeQuitHerJob. Our ecommerce website is BumblebeeLinens.com. My Twitter is @mywifequit, and I’m on LinkedIn.