How funny that after all the obstacles he hurdled to finish his first big order, he just broke even in the end. So with his new factory and machinery, Shawn went to other stores to see if they would like to buy his sacs and he was rebuffed. No one thought that the product was marketable enough. Then one day Shawn’s cousin came up with the idea of starting their own store. So Shawn set out to open his first store in a major mall next to Abercombie & Fitch (but maxed out his cousin’s credit card to do it). Together with his friends and family, Shawn created the right ambiance with a special combination of paint and lighting. Fortunately, the store’s motif worked and he started to sell franchises to raise money.
For the next couple years, Shawn was bent on opening stores in all the malls he could so that he could quell the competition. But in hindsight he now says that this was a mistake because stretching yourself too thin can cause a good business to go bankrupt. If he were to do it all over again, he would have progressed his business very slowly. For each store he would have just sat back and watched to find out what was working and why. Starting new stores should happen only after coming up with this essential understanding.
Also, getting the right financing to allow you to start new stores is essential. Shawn was relying on credit cards and money from selling franchises. He shares some of his insight about this in the third part of the interview.See 3rd video