3 REASONS WHY BRICK AND MORTAR SUCKS (I QUIT) | E commerce vs Brick and Mortar


Hey guys, my name is Wilson. Today I’m going to share something a little
bit much more personal to me. I want to tell you a little bit more about
this decision that I’ve made. I know previously I’ve made this decision
already. I’ve shot videos on quitting my brick and
mortar many, many times. Actually two videos I’ve recorded on that,
but now this is actually truly happening. I am not quitting, but I’m transitioning and
shifting all my focus from being a brick and mortar entrepreneur into becoming an e-commerce
entrepreneur. The reason why I’m doing that is because currently
I’m running two different brick and mortar business. We’re running more than seven figures, and
with this business, yes, it has provided me financially freedom and also a lot of satisfaction
being able to deliver happiness to a lot of people with my carnivals business. Now for us to do seven figures, we employ
more than a hundred staff. Our percentage for labor is around 26%. Our rent is around 28% and our costs of good
sold, that’s another 20, 30%, I would say. So that only leaves me with 25% or so of the
bottom line in terms of the profits, and on top of that, it is so difficult to fail. I know previously, two years ago or three
years ago, when I first started 720 Suites, I had a vision to create a hundred different
franchises. Once I got into it, I realized it is much,
much, much more difficult, and very not worthwhile for that matter. To be completely honest with you, I truly
believe I can still create that hundred franchises, still go through the grind and the hustle
in doing so, but then I realized the return in running a brick and mortar business, it’s
nowhere close to running an e-commerce business. Just to share some stats with you, running
an e-commerce business, you do not need high rent because basically you just need an office
environment. It doesn’t matter if you’re running a $5 million
business, $10 million business, you’re still only renting an office running an e-commerce
business, because all the inventory that you have, you have third party to actually deal
with all the fulfillment. On top of that, you can actually scale much
quicker and much bigger without cost. Previously, I ran an event, it’s called Vancouver
Winter Wonderland. I invested over half a million dollars in
running an event. I planned over six months on this event. The amount of stress, the amount of trouble
that I had was just insane. Now the return, I broke even for the event,
but it was one of the hardest times of my career, if not my life. I actually went to a semi depression after
that. I didn’t leave the house for three months,
and that is just to say, if I were to keep expanding in this brick and mortar business,
yes, half a million dollars, I might be starting to make a hundred thousand, two hundred thousand,
three hundred thousand, for that matter, for running an event. Yes, still very good money, but on the other
hand, if I were to invest the time, the energy, and the resources, and the finance in running
an e-commerce business, the chances of success and the scalability of that, it’s much higher. I’m not only limited to local people that
can consume a product or my services, I can sell to the world. I can sell to people from the States to Asia
to anywhere, Europe for that matter, which is the reason why I have decided that I’m
done with the 10 years of brick and mortar. I’m done with hiring hundreds of people, dealing
with all these back and forth, incentivizing them, having all the paperwork and everything
to deal with running a brick and mortar business, which has a limited amount of potential, and
I’m wanting to focus entirely on building a brand on e-commerce. Not just selling specifically on Amazon, but
building a brand, which I can position to sell in the future. Running an e-commerce, they have a lot of
the advantage of lower costs in rents, as I was saying. Lower labor as well, because at the end of
the day, I don’t need to have someone serve 200 different ice creams a day. I can set up the systems, I can set up the
sales funnel, I can set up the website and automatically people are buying online, so
I don’t need someone monitoring it, day in, day out. Just because the website is making $100,000,
I don’t need to add an extra person actually packing it because it’s already worked into
the cost of goods sold. Now the third is obviously the scalability
of a business that is a e-commerce business, which is the reason why I feel like I’m in
a very interesting stage of my career where I can transfer the 10 years of experience
running a brick and mortar business and all the branding that is necessary to make these
brands work into a e-commerce business. I’m super pumped up for that. It’s so much more difficult to create a brand
that works in a brick and mortar environment because you actually have to get people to
come out of their home, get out of the comfort. So if I can actually transfer the skillset
that I’ve been able to have, and attain the level of success that I had in the brick and
mortar environment, into the e-commerce business, that I can see that the possibility of success,
it’s going to be much higher. I can’t wait to share this journey with you,
and I really, really hope that you can follow along this journey and actually learn alongside
with me. I’m going to show you exactly how we build
this brand new brand and brand new e-commerce business alongside with you. So if you are interested in this transition,
if you considering building a business, whether it be a food and beverage business or e-commerce
business, follow along the journey, I’m going to share with you in the notes. Otherwise, leave me a comment in the comments
section below and tell me exactly what you think, if I made the right decision or not. Nonetheless, hope you guys enjoyed this video. Give me a thumbs up. I’ll see you guys the next video.

8 Replies to “3 REASONS WHY BRICK AND MORTAR SUCKS (I QUIT) | E commerce vs Brick and Mortar”

  1. Don't you think it will be fantastic modifying the Brick and Mortar? Am just picturing the African market and I think the combination of both will be perfect.
    Creating an online presence and also a physical presence for easy and fast delivery .
    Working on same issue too.

  2. Hey wilson im on the same boat right now. I just open a barbershop close to a year now and just me in there cutting all day. I relies that in this business i have a cap /limit on how much i can make a day. Im looking to switch into ecommerce also, learning amazon fba course right now. I love your content and wish you the best! 🤗

  3. This is actually really refreshing, as the majority of people working with retail I know are 100% e-commerce.

    I respect the transparency man, hope you keep us updated!

  4. Is the ice cream business still profitable? Just wondering if the profitability of the ice cream business made you move to Ecommerce. I know the pain of running a brick and mortar biz. Thank you!

Leave a Reply

Your email address will not be published. Required fields are marked *