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 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. At this time’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 guide. 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 persona. After Google modified its algorithm a few years in the past, writing has turn out to be boring for me. Google desires solely the reply. Offering extra than simply the reply may harm natural rankings.
Mondays are once I do most of my work. Utilizing a device corresponding 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 subjects. The author often creates a top level view on Mondays, and I’ll approve it.
On Mondays, I’ll additionally movie a YouTube video for my channel the place I educate individuals how you can 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 courses.
Thursdays, I work on duties for Bumblebee Linens, our ecommerce enterprise. Fridays are my pondering 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 durations 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. 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. A lot of our clients are airways and motels. Covid decimated these companies. On March 23, 2020, our income dropped 70%. We had staff and warehouse lease. Luckily, we recovered.
We just lately 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 have been to all of the sudden 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 enhance my way of life.
I take a look at my web value frequently. 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’ faculty. We don’t spend a lot. Our complete household spends possibly $100,000 a 12 months. Stuff doesn’t make me blissful. I’ll spend cash on experiences, however not issues.
Bandholz: Bumblebee Linens. How do you purchase clients?
Chou: Our focus is especially on Fb and Google Advertisements. Our common order worth is $60. Nearly 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 nearly 50% of our income. Most of these consumers come from Google Advertisements.
Nonetheless, Google Advertisements isn’t simple 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. Chances are high these persons are occasion or marriage ceremony planners and are available in by 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: 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.
