Why a huge presence on social media and millions in the bank does not mean that you made it in 2025

An e-commerce expert with 15 years of experience has warned Aussies to start their own brands about the pitfalls that have led so much to fail.

Joshua Uebergang, 40, has been helping companies since 2015 navigating the Shopify Online Storefront with its Marketing agency Digital Darts.

He told Daily Mail Australia the two simple rules that every company can help thrive – customer retention and dealing with expenses.

Mr. Uebergang said the Recent closure of exoticathleticsAn online Action Wearm brand founded in Noosa in 2014 was an example of companies that come up with their profit without first locking a loyal customer base.

The ActiveWear brand collapsed earlier this month because of $ 13 million in creditors after a turnover of an ‘ultra-comfortable’ crop-top in 2021.

The collected debts of more than $ 6.2 million, including $ 800,000 in the ATO, $ 6.7 million in the Commonwealth Bank And $ 114,000 for staff.

“What you generally see on Tiktok, are customer numbers, high income numbers and media statements, but that is all meaningless compared to what the company really holds up,” he said.

“Building a brand is fine, but the most important thing that these brands are missing is the fundamental basis of companies: can you acquire a customer for less than what they give you during their lives?”

The recent collapse of exoticathletics, an online ACTIVE WEAR brand founded in Noosa in 2014, led e-commerce expert Joshua Uebergang to talk about what brands do wrong

Exoticathletics has built up debts of more than $ 6.2 million, including $ 800,000 in the ATO, $ 6.7 million at the Commonwealth Bank and $ 114,000 to the staff

Emerging companies are too focused on visibility of social media instead of investing in creating loyal customers at a cheap price, Mr. Uebergang explained.

He pointed to the lifelong value for customer acquisition costratio (LTV/CAC) that compares the lifelong value of a customer with the costs that a company entails to acquire them.

This translates approximately how much a customer is willing to spend on a brand compared to the money that a company invests in attracting them in the first place.

If the ratio is skewed – usually when a customer spends less than three times the amount that a company had spent – this can cause problems.

“The smaller that ratio is, the more dangerous the company becomes and it becomes more a long -term bet,” said Mr. Uebergang.

Start-ups funded by companies have more time to come up with the margin compared to those themselves financed, because the latter depends on the personal wealth of the founder.

With companies funded by company, investors and stakeholders can make the initial difference between profit and expenditure.

‘They can really push because they have more money than the founder initially had when they started it. If someone has a small company, their own funded company, they can’t push so hard, “Mr. Uebergang said.

The founder of Exoticathletics Leilani Chandler is depicted

He warned that new business owners can easily become obsessed by creating the illusion that they live ‘the dream’.

“Founders are encouraged to promote a dream, and it is a bit like the general human reality with social media that we want to favor our successes and do not want to emphasize our failures, so it’s no different than e-commerce brands,” he explained.

“It comes from a” make money quick “belief, what can be great because it’s good for people to try new things.”

But he said that some starting owners can significantly underestimate the debts owing their start-ups at the end of the financial year.

“It is quite common to see people in their first year or two things, someone who is not special for the e-commerce room, shocked to discover that they have to pay $ 200,000 in taxes after $ 4 million,” said Uebergang.

A good rule of thumb for newcomers is to concentrate at first connecting the ends before they concentrate too much on expansion or growing their customer base.

Ensuring that the company makes sufficient profit and listening to customer feedback is essential for creating a permanent company, Mr. Uebergang said.

An e-commerce expert said that many brands undermine themselves online and concentrate on managing their costs and at the same time attract loyal customers

“Start with a profit from the first day, so that has a product for which you pay and then at least 500 percent on top that with what you will sell for,” he said.

‘That will help to explain freight costs, general labor, customs, even some marketing to help customers.

‘Secondly, you really concentrate on one and get really good at it. This can bring you up to $ 1 million income in the turnover of the year.

‘And thirdly, listen to your customers and improve their feedback from your first sale. Build 100 customers in the first instance and really try to let them return, because they are the people you ultimately serve. ‘