Tips for Growing Your Retail Shop

Hitting $10M isn't the finish line, it's where the real race begins. Most brands stall here, thinking what got you to 8-figures will surely get you to 9. After scaling dozens of brands past this critical threshold, I've cracked the code on how to break through: #1. Diminishing Returns - Diversify revenue streams to combat rising customer acquisition costs. - Optimize unit economics before scaling further to preserve profitability. #2. Product Expansion - Successful brands add complementary products around their core offering. - Growth comes from diversification, not diluting your core business. #3. Margin Focus - Elite brands optimize unit economics rather than just increasing spend. - Focus on cash efficiency, high-margin products, and post-purchase monetization. #4. Creative Investment - Allocate 5-10% of the budget to new creative or risk growth. - Divide spend: 50% proven, 30% variations, 20% experimental creative. #5. Team Evolution - Replace generalists with specialists who excel in specific areas. - Delegate control and increase overhead to enable efficient scaling. #6. Customer Retention - Your top 10% of customers drive nearly half your profit. - Build tiered VIP systems with exclusive access and personalized experiences. #7. Financial Rigor - Surface-level metrics lead to million-dollar mistakes at scale. - Don't just track metrics—interrogate them and question assumptions. #8. Strategic Leadership - Micromanaging founders become the bottleneck, preventing further growth. - Implement OKRs and frameworks that empower teams to decide. #9. Strategic Alliances - Form partnerships that accelerate reach without proportionally increasing costs. - Explore co-branding, distribution deals, and strategic licensing arrangements. #10. Long-Term Vision - It's okay to stay at $10M if that's your comfort zone. - Sustainable growth systems compound over time, not through quick wins.

"Build the right foundation before going to retail." I say this ALL the time. But I’ve realized—when you’re in the weeds building a brand, it’s so hard to know what “foundation” actually means. Here's what a real retail foundation looks like: 1️⃣ You need proof before placement. Not "we think people will love it." Real data that shows: - People actually repurchase your product - Your pricing works (and you can afford trade spend) - Your target market will seek you out (and you can draw them in store) - You have genuine differentiation beyond "better for you" 2️⃣ You need systems before scale. This is the unsexy stuff nobody talks about: - Inventory forecasting that works - Production that can handle big POs - Cash flow to support growth - Clear processes for demos, restocks, and merchandising 3️⃣ You need awareness before accounts. The dirty secret of retail success? 62% of in-store purchases come from customers who knew about the product BEFORE walking in. Translation: If you're not building buzz outside the store, you won't sell inside it. 4️⃣ You need consistency before chains. Show me a brand crushing it in chain retail, I'll show you one that: - Mastered independent stores first - Built reliable local demand - Refined their retail playbook - Created strong reorder rates Most importantly? You need to know WHY you're going to retail. That's why at Product & Prosper, we spend 3 months building your foundation before ever pitching buyers. Because retail success isn't about getting lucky with one buyer meeting—it's about building something that lasts. ❤️

Growing a business requires a significant amount of strategic focus on acquiring new customers. Rolling out new products, expanding our target audience, and partnering with category-adjacent businesses are all critical strategies for scaling. However, an over emphasis on acquisition can often lead to losing sight of nurturing the people who've already chosen us. What's been on my mind lately is the real cost of falling into the "good enough" trap. While you're busy chasing new customers, another organization is working just as hard to win over yours. When complacency sets in, they're prepared to parachute in, make your customers feel like a priority, and communicate exactly what they can deliver to make them consider switching. Especially when consumers are increasingly price-conscious, scaling and growing your business isn't just an acquisition game. It's fundamentally about continually creating new ways to deliver value to your current customers. Here are some of my go-to approaches to deepen that connection and value with your existing audience: Predict and Reward: You have incredible data on what your customers do and want. Use it to stay one step ahead and deliver something that genuinely surprises them in the best way. Think proactive delight, not just reactive service. Build a Real Community: People crave belonging. They love being part of a group where they feel seen, heard, and valued. Whether it’s online spaces or in-person meetups, create a place where your customers can truly connect, share, and feel like they belong. That builds incredible stickiness. Go Above and Beyond: I had a shipping issue with a company recently, and they didn’t just fix it, they kept me updated every step of the way, apologized sincerely, and even provided extra products. It turned a momentary problem into a powerful moment of real trust and appreciation. We need to look at current customers differently. Instead of just viewing them as consistent buyers, we should see them as amplifiers, invaluable feedback providers, and crucial testers. They are often your strongest allies in scaling and growing your business because, when nurtured, they will grow with you.

How can a small food or beverage brand "hack it" to scale with a limited budget and resources? I get asked this question a lot and basically it's what I feel called to do after decades of creating and growing brands for the big guys. It’s easy to feel like the odds are stacked against smaller brands. Giants have the budgets, the resources, and the relationships. There is a way. 𝐘𝐨𝐮 𝐝𝐨𝐧’𝐭 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐨𝐮𝐭𝐬𝐩𝐞𝐧𝐝 𝐭𝐡𝐞 𝐛𝐢𝐠 𝐠𝐮𝐲𝐬—𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐨𝐮𝐭𝐭𝐡𝐢𝐧𝐤 𝐭𝐡𝐞𝐦. If your brand has hit a few million in revenue, you’ve proven there’s demand. Now, it’s about building a brand that amplifies that demand. Here’s how to hack it and grow: 1️⃣ 𝐎𝐰𝐧 𝐘𝐨𝐮𝐫 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 Consumers are overwhelmed by choices. The brands that win are the ones that stand for one thing and own it unapologetically. → Start by asking: What makes you truly different? Is it your product? Your values? Your story? → Then simplify. Make sure your difference is clear and shows up consistently across every consumer touchpoint—from your website to your packaging to your social media. 2️⃣ 𝐃𝐨𝐧'𝐭 𝐑𝐞𝐥𝐲 𝐨𝐧 𝐏𝐫𝐨𝐦𝐨𝐭𝐢𝐨𝐧𝐬 Promotions are tempting because they give an immediate lift—but they don’t build a brand. Instead: → Focus on storytelling that creates an emotional connection with your audience. Why do you exist, and why should your consumer care? → Leverage tools like email and social media to nurture a deeper relationship, sharing behind-the-scenes moments, founder stories, or customer testimonials. 3️⃣ 𝐀𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐒𝐡𝐚𝐩𝐞 𝐭𝐡𝐞 𝐍𝐚𝐫𝐫𝐚𝐭𝐢𝐯𝐞 Without a narrative, you’re just another product on the shelf. Take control of what your brand stands for. → What do you want people to say about your brand when you’re not in the room? Write it down. That’s your north star. → Build your messaging around it—your website, your pitch to retailers, even your email campaigns should reflect this narrative. 4️⃣ 𝐒𝐢𝐦𝐩𝐥𝐢𝐟𝐲 𝐚𝐧𝐝 𝐀𝐦𝐩𝐥𝐢𝐟𝐲 𝘚𝘮𝘢𝘭𝘭 𝘣𝘳𝘢𝘯𝘥𝘴 𝘰𝘧𝘵𝘦𝘯 𝘵𝘳𝘺 𝘵𝘰 𝘥𝘰 𝘵𝘰𝘰 𝘮𝘶𝘤𝘩. The secret is focusing your energy on a few impactful moves and doing them really well. → Cut anything that doesn’t align with your core narrative. → Double down on the platforms or channels where your audience already is. Are your customers on Instagram? Show up there consistently, and create posts that make them stop scrolling. Scaling isn’t about playing the big guys’ game—it’s about redefining it to make it work for you. Small brands that win are the ones that create loyal fans, not just customers. They take risks, stay focused, and build something memorable, even with limited resources. What are you doing to redefine the game for your brand? Did I miss anything?

As online shopping grows, here’s one way small brick-and-mortar businesses can sustain success: By offering experiences impossible to replicate online. I saw this play out when I stumbled upon Two Chicks Quilting in Texas. Despite the rise of endless aisles of Etsy, this small shop has continued to thrive. Their secret? Turning shopping into human bonding. Here’s how they make “community” their competitive advantage. 1. Invest in customer relationships  The owners know every patron by name and provide personalized guidance tailored to their unique needs. Customers feel invested in the success of the biz. 2. Double down on niche expertise Positioned as specialists in quilting, they offer classes and education that back up their authority. Quilters turn to them first. 3. Cultivate a "welcoming place"  More than a store, they've created a welcoming gathering space driving foot traffic. Groups even coordinate annual retreats there. These strategies have built loyalty and resilience and enabled Two Chicks to become a main street staple. Small biz owners: Stitch together your own unique value. Not through transactions, but through connections. 

Was asked in a podcast recording earlier today for my best marketing advice to scale-up CEOs. And it was the same advice I gave two friends over the holidays running local homebrew supply and sports card stores respectively. Invest more in customer marketing. Have a customer-led growth mentality. This doesn't mean reduce or stop investing in net-new pipeline and demand. Generating new customers is critical for growth. But it does mean more time and resources dedicated to scalable programs that engage, delight and activate your customers as more frequent buyers, ambassadors and evangelists for your business and brand. Don't assume the product or experience is so great that they'll naturally keep coming back. It's a noisy, crowded world out there. Full of direct and indirect distractions and competition for their time and dollars. The community opportunity in particular looms large. If you're a homebrew store, set up and moderate a Discord for all your customers to share recipes, pictures, cautionary tales. Start an annual BrewFest and give awards/medals to customers via peer-judged tastings. If you're a sportscard store, start a Kids Club. Get a free card from your favorite team each month (which costs you pennies, gets them begging to go back with a parent and their wallet to go with them). Convert part of your store into a hang-out, with open tables/chairs for customers to open packs, trade cards, geek out together. Lingering creates and reinforces community. Recognize and reward, individually and collectively.

Most CMOs of DTC brands are spinning their wheels chasing growth. I encourage you to step back and think about this mathematical hack to scale. . . Let me break down the 3 REVENUE MULTIPLIERS that changed my perspective on growth: Background: I had just taken over marketing at Karmaloop, a 9-figure retailer that we had to pull out of bankruptcy. I needed a way to juice revenue in the short run. I’m talking within 90 days. I fell back on the writing of legendary marketer Jay Abraham. He talks about the three and only three ways to grow revenue: 1️⃣ Increase Average Order Value (AOV) 2️⃣ Increase average Purchase Frequency per customer (F) 3️⃣ Increase the Total Customers acquired (C) The magic? These multiply to produce revenue. You don’t have to double any one multiplier to double your business. Instead, think of incremental improvements: a 30% improvement in EACH multiplier = 220% revenue increase 🤯 Most CMOs focus blindly on #3, but the problem there is that’s expensive as hell. Instead, attack each with simple tactics that produce results fast: 1️⃣ Increase Average Order Value (AOV) • Increase what each customer spends • Upsells, bundles, premium options 2️⃣ Purchase Frequency • Get customers buying MORE often • Loyalty programs, subscriptions, win-backs • Reduce time between purchases 3️⃣ Total Customers • Expand your audience via new distribution channels • Strategic partnerships • Referral systems If you are overwhelmed and lost in tactical maneuver hell, I encourage you to step back and think of these three multipliers. I do it quarterly. Brainstorm tactics for each that pay off soon. It’s literally the low hanging fruit. And yes, at Karmaloop this approach got us profitable in short order. DROP A 🚀 and I’ll flip you a course I did years ago.