Lessons Learned From Scaling a Jewelry Business To 8 Figures
While many doubted him, Mills Menser launched Diamond Banc hoping to change the way the jewelry industry does business
While many doubted him at the time, the CEO knew he had a winning business strategy that would shake up the jewelry industry.
During a recent Q&A session, Menser provided some valuable insight into his experiences. He also discussed the lessons he learned from scaling his company to success. Here's a recap of those lessons so that you can apply them to your own business ventures.
Before Menser could create Diamond Banc, he needed to generate a large "unencumbered cash flow". To accomplish this goal, he had to make some tough decisions about some of Buchroeders longstanding services. While many clients valued these offerings, Menser knew that he needed to eliminate services that were not notably profitable.
Menser also faced the challenge of modernizing the business culture. As part of these efforts, he embraced online sales. While this reduced profit margins at first, it also gave the jeweler a much broader reach.
Once he fully implemented his "addition by subtraction" strategy, Menser founded Diamond Banc. He then reinvested the positive cash flow generated by the sales into his new endeavor, Diamond Banc. Menser continued to balance the responsibilities of managing both brands.
Diamond Banc is now one of the most successful jewelry buying and lending platforms.
After he took over the family business, Menser continued to set lofty goals for himself. He learned that he had to target achievements that aligned with his potential, not others' expectations.
Menser firmly believes in following his intuition while pursuing solutions that provide enjoyment, not just financial gain.
When you apply this principle to your own endeavors, Menser believes that you should never be bound by what "those around you define as success". Instead, set your sights on what you want to accomplish and relentlessly work to get it done!
Perhaps the biggest lesson that Menser learned when founding Diamond Banc is that you must be willing to evolve. In order for his plan to succeed, he had to disrupt a centuries-old industry and take a new approach to jewelry.
At the time that he started his new financial institution, not many reputable jewelers were in the business of buying back goods from the end-consumer. Instead, this process was typically associated with pawnbrokers and second-hand stores.
Menser realized the untapped potential of this overlooked market. He understood that buying back jewelry or using it as collateral for loans was a scalable venture.
By seamlessly combining several core functions of a jeweler and that of a traditional financial company, Menser created a dynamic business model that has achieved unprecedented success. You can do the same!
While Menser knew that the Diamond Banc business model was scalable, he also knew that it needed to be able to withstand a "variety of economic cycles". While Menser already had an intimate understanding of the jewelry industry, he also took the time to familiarize himself with the advanced principles of lending.
As a result, he was confident that the Diamond Banc strategy was durable enough to remain relevant as the "social structure of the world" continues to evolve. After all, the act of providing capital to others has been an integral component of society for millennia.
By applying this lesson, you can bolster your current practices to increase the financial durability of your organization. As you're reassessing your business strategies, consider how your organization will hold up in the event of drastic economic changes.
Over the last 13 years, Menser has learned many valuable lessons. Among them is the importance of being flexible and maintaining a willingness to collaborate with others.
Menser explains that there are multiple ways to address virtually any issues you might encounter. One of his favorite methods? Leveraging the talent of those around him and placing those individuals in a position to excel.
Menser utilizes this tactic to free himself up to focus on the tasks that only he can attend to. Ultimately, this allows him to be more productive overall while still moving the company forward.
Menser applies these lessons every day as he continues to build Diamond Banc.
You can also implement these lessons into your entrepreneurial endeavors. By doing so, you can improve the effectiveness of your business strategies in the pursuit of dynamic growth.