Exponential e-commerce growth without marketing spend: Advice on scaling and profit?

Hey everyone,

I’m in a bit of a pickle with my online business and could use some advice. My partner and I have this unique product that’s been blowing up on social media. We’re doing great sales-wise, but we’re struggling to keep up with demand.

Our revenue is skyrocketing. We hit $250k last year and we’re on track to double that this year. The crazy part? We’ve spent almost nothing on ads. Our product just keeps going viral on Instagram and TikTok.

Here’s the problem: we can’t keep enough stock. We started with 150 units, then 300, and now we’re ordering 1,500 at a time. But we still sell out before the next shipment arrives. Every cent we make goes back into inventory.

We haven’t paid ourselves in four years. It feels like we should be able to, given our success, but we’re always short on cash because we’re constantly buying more stock.

What would you do in our shoes? Should we look for a loan or investor to help with inventory? How can we start paying ourselves while still meeting demand?

Any thoughts or suggestions would be super helpful. Thanks!

Wow, that’s an amazing problem to have! Congrats on your viral success! :tada:

Have you thought about pre-orders? It could help with cash flow and give you a better idea of demand. Plus, customers might be more patient if they know it’s coming.

What about raising prices a bit? If you’re always selling out, there might be room to increase margins without hurting sales. That extra profit could go towards inventory or gasp actually paying yourselves!

Have you looked into inventory financing? Some companies specialize in this for e-commerce businesses. Might be worth exploring.

Just curious - what’s your product? (If you don’t mind sharing!) It sounds super interesting if it’s going viral like that.

Keep us posted on what you decide to do. Rooting for you guys!

Your situation is certainly challenging, but it’s a good problem to have. Given your growth trajectory, it might be wise to consider external financing options. A business loan or line of credit could provide the working capital needed to scale inventory and meet demand. However, be cautious about taking on debt without a solid plan for repayment.

Another option is to explore partnerships with manufacturers or suppliers. They may be willing to offer more favorable payment terms or help with inventory management given your consistent sales performance.

Regarding compensation, it’s crucial to build in a reasonable salary for yourselves. This should be factored into your pricing strategy and overall business model. Consider gradually increasing prices to improve margins and create some breathing room financially.

Lastly, don’t overlook the importance of forecasting and inventory management systems. These tools can help you better predict demand and optimize your stock levels, potentially alleviating some of the cash flow pressure you’re experiencing.

hey there, crazy sitch u got. try crowdfundin? it might boost cash flow n hype. or collab with influencers - maybe they invest/promo for equity.

have u considered licensing? might ease inventory stress. and seriously, pay yerself some cash, even a bit. u earned it!