You’ve probably heard of local Adelaide entrepreneur and business mogul Davie Fogarty. If not, you’ve most definitely heard of the hot ticket item that saw his success, The Oodie. In 2018, Davie launched his business with just $500 and through calculated approach and development, has grown his company to an epic value of $250 million. A big believer in helping others grow in the industry, Davie has shared his best six business tips for those looking to break into the world of business, and reach for the stars.
1. Never stop learning. Take every opportunity to learn and build an arsenal of skills, which will come in handy when starting your business. Books will provide the fundamentals of doing business, while podcasts and YouTube videos are great resources for up-to-the-minute information on evolving areas, such as social media. Davie found that the more widely he read, the more he was able to understand why his early businesses failed to grow, and he quickly realised he needed to upskill in areas such as direct response copywriting, basic graphic design, videography and media buying. To put new skills to the test, Davie shot video content, built websites and ran social media ads for small and family businesses for free. He says while you won’t be rewarded financially, you will be investing in experience and skills that you can build on.
2. Offer a product that people will love. A product idea can come from anywhere. Look to your friends and family to find out which products they love and see how you can improve them. The key is to find a product that offers a solution to a common problem. One of Davie’s most popular brands, Calming Blankets, a line of weighted blankets, helps solve troubled sleep, stress and sensory problems. Davie warns against cutting corners and sacrificing product quality for profit. Instead, focus on long-term customer satisfaction over short-term profit goals. “The reason our products are so successful is because the customer, and their happiness, always comes first,” he says.
3. Suppliers are your friend. Marketplaces, such as Alibaba, are a great way to source suppliers. You’ll be able to see the types of products that are available from different manufacturers. Build relationships with agents, not just manufacturers, as they can find new products on your behalf and send you product ideas from hundreds of manufacturers each week. If you’re overwhelmed by where to start, there are numerous podcasts and YouTube videos that offer guides on the sourcing process.
4. Use dropshipping to test your product. Dropshipping, where suppliers send products directly to your customers, is a useful tool when testing your product. You won’t need your own warehouse and can find out if your product is viable without the financial risk or commitment. However, Davie warns that dropshipping should only be used in the short term, as it brings with it longer shipping times, more margin for error, and therefore a lower rate of repeat purchases. “Use it only to test, improve and customise your product, before investing in a warehouse. To develop a relationship with your customer, over the long term you want to aim to ship items from your own warehouse.”
5. Content is your secret weapon. Don’t be afraid to build your business on the basics. Davie’s most popular brand, The Oodie, started from a simple, default Shopify website and basic product photos, modelled by his mum and girlfriend. He wrote the website copy based on direct marketing books and launched Facebook ads to attract customers, growing the brand from the simplest content. Now that the brand has skyrocketed, Davie has continued investing in his secret weapon: video content. “Each month we film about 100 simple, fun videos, usually around our own customers and their product testimonials. Video has been an effective tool for us, particularly on TikTok, where we attract millions of views, with no ad spend.”
6. Build a community. It is relatively easy to build a community in Australia, given the country’s small market. While engaging content is a great way to build community, influencer marketing is another powerful tool to gain a loyal following around your brand. The key is to target influencers who have a genuine and emotionally connected audience and a consistent engagement rate. This emotional connection is key to selling your product successfully.
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