Factory LED Direct

This is how Factory LED Direct established themselves in the US market with our help. 

Factory LED Direct reached out to Straight Talk Consulting to implement a new e-commerce supply chain within the United States that sold LED lights directly from manufacturer to end user. Read on to see exactly how we grew Factory LED Direct to over $350,000 in sales in their first year.

The Client 

When Factory LED Direct approached Straight Talk in November 2017, they were a bootstrapped startup looking to change the way LED lights were sold to the US market. The founders had over 20 years of experience in the industry and wanted to provide lighting directly to electrical contractors, removing the multiple levels of distributors between the customer and the manufacturer.

The Challenge

As a bootstrapped startup, Factory LED Direct had to find a way to get themselves into the market without wasting resources on activities that would only deliver a small ROI.

Their lack of funds meant they were not in a position to make many mistakes. The founders reached out to Straight Talk to help guide them on this journey and establish them in the marketplace. Our joint objective for the year was to set up the website, implementing the CRM system, implement all operational automations and achieve our 25 customers target to ensure Factory LED Direct survived into its second year

The Solution 

With any startup, the challenge is to acquire customers without burning resources on expensive activities. Our initial focus with Factory LED Direct was not on repeatable and scalable customer acquisition. We instead focused on removing the risk to the company’s long-term survival.

We achieved this in the following ways: 

  • We started by building the website using WordPress, the Divi Theme by Elegant Themes, WooCommerce and Stripe. The hosting was provided by GoDaddy. This ensured hosting stayed below $10 per month but provided the same functionality that you would find in a $299-per-month Shopify store. It future-proofed the business by ensuring that the only expenditure increase from growing website traffic would be the hosting costs.
  • We leveraged the experience of the two founders to sit down and conduct market research interviews with 20 potential clients, to better understand the wishes and potential objections of the target market. This helped us understand the key challenges faced by electrical contractors with the existing methods for acquiring LED lighting. 

  • With the knowledge acquired from our market research we created an email outreach campaign based on the key pain points of potential customers. Moving state by state, we used our campaign to attract the attention of electrical contractors and lead them to the Factory LED Direct website. When we knew a contractor had clicked on the link, our team would find their phone number on their website and call them to start a conversation. Our plan was to implement this technique until we had our first 25 customers. 
  • Our team knew that the outreach campaign would only be useful in year one, so we started to lay the long-term foundations for SEO by registering the site with Google Search Console, optimizing all of the pages for appropriate keywords and registering the site with industry-specific websites. 
  • We implemented a free version of the HubSpot CRM and linked this to the website. Every time someone purchased or opted in to a discount offer on the website they were added to the CRM system, which was reviewed weekly during our calls. 
  • We implemented a free version of Mailchimp that was also linked to the CRM system through a free integration. This allowed us to send weekly marketing emails to customers or potential customers.

Results

After one year of working with Straight Talk Consulting, Factory LED Direct surpassed its 25 client target and booked more than $350,000 in sales.

We continued our work into year two, when we began implementing scalable customer acquisition and preparing the business for accelerated growth in year three.

Clint  McGee – Founder

The numbers show it, we have the traffic to the website, we have the analytics, we have the sales. In my opinion it’s an impressive start to do $400,000 in sales with no debt.

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