The Highs: How Liquor Loot Took Off

Running Liquor Loot was exciting and full of big wins. It was a chance to take an idea and turn it into something meaningful for customers, partners, and the team. Here are some of the best parts of the journey:

• Making Money: We started small in 2017 but grew to make $17 million in sales by 2023. Each year brought new challenges and successes. From learning how to attract new customers to finding ways to keep them engaged, every milestone felt like a step toward something bigger.
  
  

• Happy Customers: Our customers didn’t just buy once; they kept coming back. By year four, the average customer ordered 8.3 times a year, up from just 2.2 orders in their first year. This loyalty was built through careful attention to detail, personalized touches, and creating an experience that felt special.
  
  

• Getting Investments: We raised over $2.7 million to grow the business. This money helped us expand our marketing and create new products. It also allowed us to hire talented people who brought new ideas and energy to the team.
  
  

• Big Partnerships: We worked with famous brands like Diageo and Moët Hennessy, which helped us stand out and reach more people. These partnerships gave us credibility and opened doors to new opportunities.
  
  

• Going Global: We expanded from Australia to markets like the U.S. and Asia, making Liquor Loot an international brand. This move was both exciting and challenging, as we learned to adapt our products to different tastes and markets.

Growing Liquor Loot wasn’t easy. It took a lot of hard work and smart decisions. But as the business grew, things got more complicated, and cracks started to show. The challenges of balancing growth with stability became more apparent over time.

The Lows: What Went Wrong in 2023

In 2023, a lot of things went wrong all at once. Problems in the world economy and mistakes inside the company made it impossible to keep going. These setbacks forced us to rethink everything we had built and make tough decisions about the future.

Here’s what happened:

• Losing Customers: The cost-of-living crisis made people cancel their subscriptions. No matter how hard we tried to keep them, too many people left. This was a stark reminder of how external factors can impact even the most loyal customer base.
  
  

• Too Much Leftover Stock: Only 60% of our holiday advent calendars sold, which hurt our cash flow. Planning inventory became a gamble, and this time, we lost.
  
  

• Losing Team Members: Our General Manager and CFO quit during this tough time, making it even harder to manage the business. Their departures left gaps in leadership when we needed it most.
  
  

• Running Out of Money: We couldn’t pay all our bills, even after making plans with creditors and asking for more help. By December, we had no choice but to put Liquor Loot into Voluntary Administration (VA). It was a heartbreaking moment, but it also marked the beginning of reflection and learning.

These challenges forced me to take a hard look at the business and figure out what went wrong. It was one of the hardest times of my life, but I learned a lot about resilience, decision-making, and the importance of preparation.

Lessons I Learned

Here are the most important lessons I took away from my time with Liquor Loot. These are lessons I hope other business owners can use to avoid similar pitfalls.

1. Grow Smart, Not Fast

Growing quickly sounds great, but if your systems can’t keep up, it’s a recipe for disaster. We had tools like dashboards and cash flow forecasts, but they weren’t enough to handle everything when problems hit. Scaling should be intentional, with a strong foundation to support it.

2. Don’t Put All Your Eggs in One Basket

Relying on one main way to make money is risky. While we tried new ideas like corporate gifts, we didn’t do it fast enough to make a big difference. When one big order was canceled before Christmas, it hit us hard. Diversifying revenue streams is key to long-term success.

3. Save for a Rainy Day

Every business should have extra cash for emergencies. We didn’t have enough savings to get through tough times. If I could go back, I’d make sure we had a stronger financial safety net. Cash reserves provide breathing room during unexpected downturns.

4. Be Honest with Everyone

When things go wrong, it’s important to be open and honest with your team, investors, and creditors. During the VA process, being upfront helped maintain trust and respect, even in tough conversations. Transparency builds trust and can make hard situations a little easier to navigate.

What’s Next for Me

Even though Liquor Loot didn’t end the way I hoped, I’m proud of what we built and the lessons I’ve learned. Now, I’m using that experience to help other businesses in the FMCG and e-commerce industries grow in smarter, more sustainable ways. I want to help other founders avoid the mistakes I made and build businesses that can thrive in any market.

I’m also looking into exciting new opportunities in technology, like SaaS and AI. These tools can make businesses run better, and I want to create solutions that help companies stay strong during hard times and take advantage of new opportunities. The future is full of possibilities, and I’m ready to embrace them.