We Had $30K Left… 30 Days From Bankruptcy

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley shares how his ecommerce business nearly collapsed in January 2024, with only $30,000 in the bank against a $300,000 credit card payment. He reveals how failed product launches, poor financial forecasting, and complacency caused the crisis. Josh outlines three key lessons: implementing cash flow forecasting, creating a structured product launch playbook, and making more calculated bets. He details his recovery through diversifying sales channels, particularly TikTok Shop, which went viral and revitalized his business, ultimately turning a near-bankruptcy into a breakthrough success story. Links and Mentions: Cash Flow Management "Cash Flow Forecasting Spreadsheet": "00:03:56" "YouTube Video on Cash Flow Forecasting Tips": "00:04:56" E-commerce Platforms "Amazon": "00:01:00" "TikTok Shop": "00:09:54" "Shopify": "00:10:50" "Shein and Temu": "00:10:50" "Walmart.com": "00:10:50" Business Strategies and Lessons "Sales Cures All": "00:09:00" "Creating a Playbook": "00:05:55" Timestamps: 00:00:00 Introduction & Crisis Unveiled Josh introduces himself and describes the January 2024 financial crisis: $30k in the bank, $300k credit card due. 00:01:02 Causes of the Crisis Explains the series of bad product launches, heavy ad spend, and lack of financial forecasting that led to the crisis. 00:02:03 Complacency and Lack of Process Discusses complacency in product launches and absence of a defined process to stop losses early. 00:03:02 Cash Flow Forecasting Lesson Highlights the importance of cash flow forecasting and how not having it worsened the situation. 00:03:56 Implementing Cash Flow Forecasting Describes adopting a cash flow forecasting spreadsheet and the benefits of forward-looking financial planning. 00:05:06 Key Lessons Learned Summarizes three main lessons: forecasting finances, creating a playbook, and launching better products. 00:05:55 Building a Product Launch Playbook Details the new process for product launches, including team communication and documenting lessons learned. 00:06:46 Launching Better Products & Calculated Risks Emphasizes the need for better product selection and avoiding multiple risky launches at once. 00:07:58 Systems Breakdown & Exposure Reflects on how the lack of successful launches exposed weaknesses in business systems and processes. 00:09:00 Immediate Actions: Focus on Sales Describes the shift to focusing on sales growth and stepping away from day-to-day operations. 00:09:54 Growth Initiatives & Channel Diversification Lists four growth actions: retail outreach, TikTok Shop, Shopify, and additional marketplaces like Shein, Temu, and Walmart. 00:10:50 Results of Channel Experiments Shares outcomes: retail failed, other marketplaces had minor impact, Shopify showed promise, TikTok Shop was the breakthrough. 00:12:34 TikTok Shop Breakthrough Explains how going viral on TikTok Shop quickly generated revenue and improved Amazon sales. 00:13:29 Advice for Entrepreneurs in Crisis Encourages creativity and aggressive action to drive revenue when facing business crises. 00:14:25 Doubling Down on Winning Channels Describes the strategy of testing multiple channels, then focusing on the one showing early success—TikTok Shop. 00:15:15 Building a Flywheel: TikTok Shop & Shopify Explains how TikTok Shop content and insights fueled success on Shopify and created a virtuous cycle with Amazon. 00:16:15 Encouragement & Lessons from Setbacks Offers encouragement, sharing that setbacks can lead to breakthroughs if you focus on growth and don’t quit. 00:18:21 Sports Analogy & Final Words Compares business setbacks to sports, stressing the importance of learning from failures and persisting. Transcript: Josh Hadley 00:00:00  I had $30,000 sitting in my bank account with a $300,000 credit card payment coming due, and I had no idea what to do. Welcome to the Ecomm Breakthrough Podcast. I'm Josh Hadley. I've scaled my own ecommerce brand from 0 to 8 figures, and I'm actively building towards nine figures in sales. This podcast is where I document that journey and share the systems, the strategies, and the lessons learned in real time so that you can learn what actually matters and scale your own business. First and foremost, who am I? My name is Josh Hadley. I'm a man of faith. I am a father of four and a husband to a beautiful wife. I've been selling into e-commerce space for over a decade, doing multi millions in revenue on different sales channels such as Shopify, TikTok, shop and of course, Amazon. And I am also the host of the number one business strategy podcast in the e-commerce space. And that is E-com breakthrough. This was January of 2024 for me, and this was the first time where my back was severely up against a wall to where I felt like, is this where I have to declare bankruptcy? It was a very, very uncomfortable position to be in. Josh Hadley 00:01:02  And to be honest with you, I felt like I had failed miserably as a business owner, and this has been the first time where I actually had to dip into my own personal bank account just to fund payroll. That wasn't even to cover the credit card payment that was going to be due. I had to cover payroll for the week, and I didn't have enough money in the bank account. I'm going to share with you, like, the actual things that I implemented in the business to get us out of this really, really sticky situation and to clear the way through what I thought was going to have to be us declaring bankruptcy for the overall business. So what happened here is basically a series of like, unfortunate events that kind of like compounded onto each other. So let's dive back in. Like what drove me to only have $30,000 sitting in the bank account with a $300,000 credit card payment coming due. Well, what happened is, number one, we had some bad product launches. So in the months of November and December, we had launched some new products and I was very optimistic about these products. Josh Hadley 00:02:03  We placed some large purchase orders for them, and then we invested heavily into pay per click ads on Amazon, thinking that we knew how to rank these products well. Well, sadly, these products did not go over as well as I as I had thought. And so we accumulated a massive advertising budget for those products. And then they didn't even sell very well. And now I was stuck with a lot of inventory, but b I had a bunch of ad spend that was now added to my credit card bill that was going to be due. The other thing that I learned from that process is that, hey, we didn't have a really good process of launching products like up until that point, maybe I had just been like winging it, or I thought we knew the process to launch products successfully on Amazon....

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