Join Norbert Strappler in the new SyncSpider’s eCom Ops Podcast episode as he chats with e-commerce expert Chris Shipferling, the Managing Partner at GW Partners and Founding Partner at SouthCol, revealing strategies to maximize your business’s value and master the exit process. Get ready to level up your eCommerce operations!
About:
Chris Shipferling is a renowned figure in eCommerce and Investment Banking. As the Managing Partner at GW Partners and Founding Partner at SouthCol, he co-founded a $50 million eCommerce growth fund, bringing a wealth of experience and unique insights to the digital consumer products industry. Chris’s expertise lies in guiding businesses to optimize their EBITDA/SDE, expand their multiple, and improve their eCommerce operations, preparing them for successful growth and lucrative exits in the market.
GW Partners is a distinctive firm specializing in operational consulting, financial management, strategic planning, and M&A advisory services. They partner with consumer brands to transform them into highly valuable strategic acquisition targets. GW Partners’ primary goal is to aid owners in transforming their companies, enhancing their value, and maximizing their exit potential. Through active engagement and partnership, they create, implement, and execute operational plans that significantly increase the company’s value and attractiveness as a strategic acquisition target.
SouthCol is an eCommerce brand accelerator dedicated to designing paths for high-valuation sales within 18-24 months. Headquartered in New York City, with offices in Charlotte and Tel Aviv, SouthCol provides capital, strategic advice, operational support, and exit strategy to eCommerce brands. Working from a founder’s dream exit valuation, they pave the way to turning these dreams into reality. Their comprehensive approach ensures brands are not just ready for the market but are desired and coveted by potential investors.
Key Takeaways
[00:00:00] Introduction to Chris Shipferling, Managing Partner at GW Partners and Founding Partner at SouthCol.
[00:01:09] Chris provides insights into his background in the consumer products industry, specifically baby products, where he observed the rise of e-commerce.
[00:02:13] The fundamentals to be successful in consumer products, including the significance of e-commerce as a powerful retail channel.
[00:02:57] The inception of GW Partners stemmed from the need to offer a bridge between business brokers and investment banks for e-commerce businesses, providing more than just a sale service but also strategic assessments.
[00:04:07] SouthCol, a joint venture, is introduced as a $15 million e-commerce Growth Fund that injects working capital into businesses to aid rapid growth and sale within two years.
[00:05:34] A catalyst for e-commerce growth, providing strategic resources and guidance to businesses that need an accelerated boost, essentially functioning as a proactive, strategic C-Suite.
[00:07:38] The go-to advisors who know what high-paying buyers are looking for and how to prepare businesses to maximize their value.
[00:08:37] A success story of a beauty brand they worked with, which saw significant revenue growth and is set to be sold for an impressive sum.
[00:10:35] The importance of failure and the necessity of having the proper fundamentals for business success.
[00:10:49] Chris recommends the book ‘Good To Great’ by Jim Collins, a study on leadership among Fortune 500 companies.
[00:11:29] The concept of ‘Level 5’ leadership – hiring the right people or having the right service providers is a must. Always have a quick failure strategy if a particular setup isn’t working.
[00:13:01] What investors look for in an e-commerce business. The focus is not just on past performance but also on future growth—the importance of diversification within sales channels and understanding the purpose and goals of each channel.
[00:16:01] Have a strong business plan that demonstrates the business’s potential and speaks to the brand value in attracting investors.
[00:17:10] Discussing reasons for selling a successful business – various scenarios from gaining resources for growth to simply cashing out. Keeping the business and turning it into a cash-flowing entity is an option.
[00:20:44] Strategic approach towards helping small business owners optimize their businesses. The importance of reverse engineering.
[00:22:04] The importance of diversifying beyond just one channel, such as Amazon – Mitigate channel risk and enhance value for potential investors.
[00:25:21] Tips for e-commerce businesses, notably those solely on Amazon. Invest time and resources in product development, then identify the next channels for growth, incorporating SEO, email marketing, and social media marketing strategies.
[00:26:43] To be successful, businesses should know who their buyers are, delight the consumer, and have a strong product and brand story.
[00:28:51] When small business owners, especially those generating revenues in the range of 4 to 7 million, should seek outside help to grow their businesses?
[00:31:24] Have an equity stake when partnering with a company to sell it.
[00:32:11] The common mistakes eCommerce businesses make when planning an exit.
[00:34:56] The dangers of over-reliance on a single sales or acquisition channel warn businesses against not knowing their numbers well enough.
[00:35:54] Chris reflects on his journey of learning about eCommerce, mentioning multiple mentors and resources that shaped his understanding.
[00:41:36] The future of eCommerce and podcasting – imagine a world where AI avatars conduct podcast interviews.
No.1 eCom Operations hack
“Move away from just one acquisition channel or one sales channel! If you’re two laser-focused on either one sales channel or one acquisition channel, you put yourself into a very risky category.”
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