Personal experience: I 50 thousand launched a service for clothes selection

Shopping centers with dozens of shops of clothes, shoes and accessories are becoming more and style classes are still not taught in schools or universities. To help understand a huge assortment, there are stylists, but set aside time and money for their services, not everyone can. Layfhaker talked to service the founder of Get Outfit Kim Sanzhieva. He decided to change the situation and created a platform on which to work with a stylist and you can inexpensively online. Kim described how managed to keep the prices are reasonable, why startup conquer the US market, and why his team has not received a salary for two years.

Working in feshen and the birth of the project

Four years ago, I graduated from the economic faculty of the Belarusian State University and moved to Moscow. Almost immediately it fell within the scope of consulting and realized a half later, that the majority of companies are moving online. So I found myself in the digital-agency, and then in the international IT-companies.

In the process, I often met with businessmen from various fields and on the basis of our conversation is being recorded, how I see my future project. It would be desirable that the business was digital and did not require a large amount of resources, so I actively followed Uber, Airbnb, and Tinder, which at that time in its infancy. I liked the business model of these companies, so I began to think how to put something like this in another sphere.

As a student, I came to the part time Moscow's clothing stores - served as a sales assistant.

At that moment, I almost knew nothing about fashion, but noticed that for some reason people consulted it with me.

This was the first bell, which caused me to reflect on the field feshen. The second time the same thought came when I chose to images business meetings while working as a consultant. Large customers will always meet on clothes, so we had to spend a lot of time to look spick and span.

I started thinking, why Russia does not have an online service with stylists who pick up the images, relying on a small user story about themselves and their needs. How much time we could save? This is a huge resource that you can use to implement their own projects or to spend on communication with family.

The final decision I took when my girlfriend came to Moscow and settled for a time in my house. I drew attention to how they are going for a walk: 3:00 girl consulted with each other on what to wear. At that moment I realized that I wanted to create a service that will allow people to save time on shopping and help in making stylish images. So the idea Get Outfit.

Search for Stylists and the first model of service

Feshen industry - this is a very big market, which takesGlobal fashion industry statistics - International apparel nearly 4% of global GDP. However, when I talked to customers from this area, it became clear that many projects are ineffective. Most often, the fashion brands in Russia, created by people with a good sense of style and a complete lack of business backgrounds. An illustrative example - boutiques Kira Plastinina, which quickly went bankrupt and disappeared.

I thought that business knowledge in the field can be my advantage. I can find people who understand feshen industry, and we combine our experience.

When I began to study stylists market, it became clear that their services in the Russian reality are considered a luxury. It seems that the experts from the fashion industry turn a celebrity or wealthy people with a complete lack taste clothing. I decided that my service in contrast to general belief is affordable, convenient and easy. Services should cost much less than the standard at that time, 5000 rubles per hour indicated on the websites of most experts. Reduce the price it is quite possible, if the stylist does not spend much time on each client and issue recommendations online. Users only need to select a service, fill out a short questionnaire, and then talk with a specialist who will pick up ready-made images.

From the outset, I would like to create an effective business model, so I take good care of every penny. We spent to run no more than 50 000 rubles. Money spent on the purchase of the domain, website creation, initial promotions, photo shoots and registration of a legal entity. It was enough to create the first version of the product viable.

The lack of salaries and the expansion of services

The team consisted of five people. We did not get a dime Get Outfit and combined project with the main work. Every thought is not about earnings, and about the effectiveness and scale: we lived a dream to be able to create a big business in the future. This ideology, we adhere to so far: the first will begin to receive wages only after the closing round of investment. Prior to this, we decided to re-invest the money back into the project. Our main motivation - to create a company that will cost a lot. Capitalization for us is much more important than earnings in the short term.

During the first launch in December 2017 standard service Get Box on the selection of a single image of five components of cost 1490 rubles, of which 1 250 240 and pick up stylist battered us as arrived. The business model was to bring good money on the condition that there will be many orders, but in the end revenue It was about 50 000 rubles per month, and our profits - 25% of this amount. Partially we paid for primary costs, but began to think how to increase margins to earn more.

The second launch, we have agreed with some shops on the Commission, they will pay us on the condition that people will buy them clothes through our service. We share it with the stylist, and thus profit from each order increases. In addition, we have registered the rules of communication with the client and added new services. For example, for 2490 rubles have the opportunity to get as many as three images from a stylist and choose your favorite things - this service is called Get Outfit.

On top of all, I thought that there are different patterns of consumption: some buy a few things every month, while others make a big one-time purchase and long term, not to think more about the things in the near season. For such people, we launched service Get Wardrobe for 6990 rubles: stylist helps raise capsule wardrobe more than 10 images, and favorite options are available.

Over time, customers began to request to disassemble an existing wardrobe and supplement it with new things. It is a position of conscious consumption, which at the present time is very important, so we added a service Get Styled. It will cost 9990 rubles, and for the money stylist will be more than 20 images of the new clothes and the one that is already hanging in your closet. Will only order your favorite things and keep what is best suitable.

Stylists School and premium segment

The second launch of the average check for the service in our service was already 5000 rubles, to which is added to the Commission repurchased things. Average customer budget for one image - 25 000 rubles, and we were able to make a profit in the amount of 15% of this amount. We have confirmed the hypothesis that our things to buy and recommend to friends. Moreover, the customers coming back again approximately every three months, and we can assume that our service will use about four times a year.

Who we are told in the major media, we got a good traffic and began to further develop advertising channels. It became clear that the business can be scaled so that they began to invest in the promotion via Instagram and Facebook. At this point, we are faced with the problem of getting more and more orders, and stylists who suit us, almost was not.

We have fundamental requirements for specialists: they must be able to communicate properly with the client, to present the image of man, to make beautiful collages and generally feel comfortable in digital-media. Not all stylists have the required competencies to Get Outfit, so we started her own school of two courses - basic and advanced. Passage of the latter considerably increases the chances for a job in the company, if a person has the desire to continue cooperation. The educational process provides Get Outfit another source of income and helps to grow the appropriate professionals.

I have a lot of thinking about how we can continue to scale the business model, and realize that you need to combine on our platform all stylists. We have created an affiliate program that allows any specialist to share with us a percentage of the sale of clothing, if he holds a purchase through our service. This passive income and a good plus for any stylist, who will receive additional revenue for us.

we realized recently that we began to seek premium customers with a budget of 50 000 rubles for one way, so added some options for interaction. They are more expensive: a single image - 20 000 rubles, seasonal wardrobe - 30 000 rubles, and the analysis of the available - 40 000 rubles. The client chooses services on the site, fills out a form and negotiates, where and when seen with a stylist. Personal meeting for the premium segment - an important component because it makes it possible to feel the atmosphere of a boutique. To your arrival Specialist will select the images ready, so will only try them on.

Profit and outlook

Today our team consists of 10 people: CTO, Head of stylists, public relations director of the school and stylists, product director, and the person who is engaged in magazine and affiliate program with the brands. Recently there have been director of growth, director of marketing, SMM-specialist and trainee in the marketing department. We have already realized what structure we need for further work. In the near future to invite the team new specialists, close round of investment and start out on the US market and the UK.

From the beginning, I planned to build a company that will operate on the global market. We have already arranged a trial run in Belarus. In addition, we have had customers from the USA, the Netherlands, Spain, United Arab Emirates. Now we want to master the major metropolitan areas in America and Europe. I believe in startup There is no future if the team is not thinking about leaving to other countries, so we from the beginning started to build a model that can be easily scaled. At the same time, the Russian market still remains a priority for us.

In April, we took to the turnover of 1.5 million per month. Margins of this business - just above 20%. However, we are growing constantly, so the potential is huge. Our main costs spent on promotion: we invest in advertising 100 000 rubles a month, and it is the most significant item of expenditure. Here you can add the payment of stylists, who received an average commission of $ 300 000 per month for 2018.

Dips and insights

In the beginning, we definitely worth it to thoroughly test the project on a cold audience. You have to understand that friends who know about the product of social networks can take advantage of them because you are loyal. You certainly difficult to tell a friend, who recorded the song, the track is not very. The same thing happens with your service.

If I ran the Get Outfit today, he would have laid far more money on promoting a cold audience to get a statistically significant data: Cost per customer, conversion and other metrics. This will allow to see in advance the objective figures that in the future will need to get your business model, project economics.

In 2018 we had periods when we scored on sales and product involved, trying to bring it to perfection.

It is impossible to stop the promotion, even if you think the product is not the way you want it to be.

It is important to build up the communication so as to obtain feedback from customers and improve the service in parallel with the promotion. Do not be afraid of stocks, which appear at the beginning. If you learn from your customers, you will get a much more valuable experience than it will lock in the room and you do something you need only your understanding.

The third mistake - unreasonably increase the team. When we began to increase the number of orders, we hired new staff. This led to the fact that we lost focus and began to spend more time on communication. The first success breeds ambition, but excessive enthusiasm can destroy you. It is better to concentrate on a specific task and a small team to focus efforts on one point. So you will achieve faster results and begin to receive a steady income.

One more problem - perfectionism. In the beginning, I terribly worried that the site lacks a single point or a comma, but then I realized that sometimes you have to sacrifice their desire for an ideal, to quickly launch the product on the market. Do not focus on the little things at the start - treat them leniently. It is better to take the time alignment of processes in the company that she later worked with your minimum participation, and you at this time could do something else.

Life hacking by Kim Sanzhieva

• More business and less Focus on the words. When I run the project, it took me a year to think through it, study the market, to meet with countless people. In fact, quite the month to find out everything and start testing project. Practice will give you a much higher response rate.
• Do not be afraid to share his idea. Many startups think that someone steals it and sells used, but in reality the idea is only 10% of success - it does not cost anything. Most importantly - how it is implemented. Talk about your product at every meeting, because you get information that can then be applied. More than once I acquired useful contacts only because talking about the project even at the idea stage.
• Filter the information content. Now quite a few really valuable expertise, so it applies to all critical. Not all the advice you will do. If I want to create a global startup that will cost more than a billion dollars, it makes no sense to me to listen to the person who has organized a network of cafes in a small town. He has a completely different methodology, tools and tactics.
• Do not think that business - it is easy and simple. Appropriate people immediately understand that this is not so. Decide what you are willing to sacrifice for the sake of long-term results and do not think that'll be swimming in money after a couple of months. The same idea should be to convey to the commandsThat people have not formed the wrong expectations from the project. If you are ready to invest in the power project and during two years, and your partner - just three months, you are unlikely to work. Discuss the goals, objectives and expectations in advance and rasstantes at once if you know that your vision of the future does not converge.
• Pay attention to the Western experience. And if you do not know English, learn it as soon as possible - it's incredibly important right now. Many of the ideas from the foreign market can not be realized in Russia, but at least you will understand which way to go. On this topic, there are many podcasts. One of my favorites - Masters of Scale.
• Get content when you need it. It makes no sense to learn how to scale when you have not even started the project. At this stage it is much more important to know how to get to market faster. It also includes the timely solution of problems. Do what you really need right now. This problem often occurs in technical startups instead to take care of sales, they are locked and begin to refine the product. The result is a spaceship, which is no use to anyone. Identify growth points, mark the path of development, and figure out what is worth to take right now.