Written by seasoned founders Scott McLeod and Eric Hutchinson the book is a field-tested manual designed to help you validate ideas, build efficient systems, and turn limited resources into long-term growth. Whether you’re launching your first DTC site or optimizing your scaled cashflow and margin, this book gives you the frameworks and tools to build a sustainable, profitable brand.
This is for you if…
– You’re launching a direct-to-consumer (D2C) ecommerce business
– You’re scaling a brand with limited capital and need high-ROI strategies
– You’re struggling with operations, fulfillment, or cash flow
– You want a tactical, real-world guide—not theory
– You lead marketing and need practical advice on channels and creative
– You’re focused on growth and scaling through operational excellence
Section One: Ways of Working
Assume You’re Wrong
Startup success in ecommerce requires constant testing and iteration. This chapter explains how embracing failure as feedback helps founders find product-market fit faster.
– ✅ Assume every idea is a test, not a truth.
– 🔍 Let data—not gut—drive decisions.
– 🔄 Mistakes are feedback loops, not failures.
– 🧪 Speed of experimentation = speed of learning.
– 📉 Avoid ego traps; adapt fast to what’s working.
Build Sustainable Systems
Scalable ecommerce startups need systems that reduce chaos and increase consistency. Learn to create repeatable frameworks that support growth without micromanagement.
– 🔧 Don’t solve the same problem twice—systematize it.
– 🧱 Build scalable processes from day one.
– 🔁 Systems create consistency and reduce chaos.
– 🧑💼 Replace heroic efforts with repeatable playbooks.
– 💡 Applies across ops, marketing, support, and hiring.
Leverage Limited Time
Time is your most valuable startup resource—optimize it. This chapter helps ecommerce founders identify high-ROI tasks and eliminate distractions.
– ⏰ Time is more scarce than money—protect it.
– 📊 Focus on high-ROI tasks (the 80/20 rule).
– ❌ Say “no” often; distractions cost growth.
– 🧠 Block time for deep, strategic thinking.
– ⚙️ Automate and batch work to reduce context-switching.
Fill Your Roster
Early ecommerce startups thrive on scrappy, adaptable teams. Learn how to hire generalists who evolve with your brand’s needs and avoid premature scaling.
– 🤹 Hire generalists first—they scale with you.
– 🌱 Early-stage needs adaptability over specialization.
– 🔍 Look for curiosity and execution skills.
– 📈 Layer in specialists only when systems are stable.
– 🧬 Culture fit matters more than fancy résumés.
Follow the Cash
Understanding cash flow is essential for ecommerce founders. This chapter outlines how to track unit economics, manage burn, and choose the right funding sources.
– 💸 Unit economics are your compass—know them cold.
– 🧮 Track contribution margin, CAC, and LTV.
– 🏦 Choose funding tools based on stage and risk.
– 🧯 Avoid “profitable but broke” traps—cash flow matters.
– 🔁 Understand the difference between profit and liquidity.
Section Two: Taking Action
Defining Your Product
Product-market fit is the foundation of ecommerce growth. This chapter shows how to validate demand before investing heavily in development or inventory.
– ✅ Product-market fit beats clever ideas.
– 🔍 Use landing pages, ads, and waitlists to validate.
– 🎯 Choose what solves a real need, not what’s novel.
– 💬 Early feedback is worth more than polish.
– 🛑 Don’t build before you know people want it.
Sourcing Your Product
Your supply chain is a competitive advantage in ecommerce. Learn how to vet suppliers, balance cost and quality, and prepare for scale.
– 🤝 Pick suppliers who grow with you.
– ⚖️ Balance cost, quality, and speed.
– 📦 Avoid over-ordering before demand is proven.
– 🚨 Watch for hidden costs in shipping and tariffs.
– 📈 Re-evaluate sourcing as volume increases.
Selling Where Your Customer Is
Ecommerce brands must meet customers where they shop. This chapter helps founders prioritize D2C, marketplaces, and retail channels.
– 🛍️ Start with D2C to own your data and brand.
– 🧭 Choose channels based on product type and margin.
– 🏪 Expand to marketplaces and retail strategically.
– 📈 Retail can be high volume, but needs strong unit economics.
– 🧱 Don’t get stuck in one channel—diversify over time.
E-Commerce Marketing Channels & Growth
Marketing your ecommerce brand starts with knowing where customers discover new products. Find the best channels, measure traction, and scale what works.
– 📣 Marketing is about discovery, not just impressions.
– 🧪 Test paid and organic channels early.
– 🎯 Focus on where your audience already hangs out.
– 📉 Avoid spreading too thin—double down on what works.
– 📊 Track channel effectiveness via simple attribution.
Producing Winning Creative Assets
Creative content fuels ecommerce growth. This chapter covers how to produce and test high-velocity assets without sacrificing performance.
– ⚡ Velocity > perfection. Get content out quickly.
– 🧪 Run creative tests constantly (big and small changes).
– 📷 Use fast creative (UGC, quick edits) and slow creative (brand).
– 🤳 Mix DIY, contractors, and influencer content.
– 🔁 Weekly creative reviews keep the flywheel spinning.
Getting Your Product to Your Customers
Fast, transparent fulfillment builds ecommerce loyalty. Learn how to choose a logistics model that fits your product and enhances customer experience.
– 🚚 Fulfillment = customer experience.
– 🏭 Match your logistics model to your product.
– 📦 3PL, dropshipping, or in-house—choose what scales best.
– 🔁 Over-communicate on shipping delays.
– 🔒 Reliability builds trust and loyalty.
Interacting with Your Customers
Customer service is your hidden growth engine. This chapter shows how to use feedback, automation, and support to improve CX and retention.
– 💬 Support is sales, retention, and R&D all in one.
– ⚙️ Automate FAQs, but make humans available for high-value touchpoints.
– 📞 Use early phone interactions to gather insights.
– 📢 Engage on social, marketplaces, and reviews.
– ❤️ Delight creates loyalty—and referrals.
Managing Your Cash
Ecommerce brands live or die by cash flow. Learn how to forecast, fund inventory, and survive cash crunches through strategic planning.
– 💰 Cash flow > profit on paper.
– 🧠 Use rolling 12-week forecasts to plan ahead.
– 🔁 Speed up inflows (sales), slow down outflows (vendors).
– 🧾 Audit ad spend, inventory, and ops regularly.
– ❗ Avoid traps like inventory financing or overfunding early.
Getting Everything Done
Ecommerce founders need focus to scale. This chapter covers sprint planning, prioritization, and how to manage growth without burnout.
– 🧭 Prioritize ruthlessly—what actually moves the business?
– 📅 Use 45-day sprints to realign and energize teams.
– 📊 Benchmark your business and your people.
– 🔁 Constantly reassess what’s working and what’s not.
– 🚨 Don’t let structure lag behind your growth.
Scott McLeod is a seasoned Co-Founder and marketer specializing in direct-to-consumer (DTC) brands. With over two decades of experience, he has been instrumental in launching and scaling high-growth companies, including Resident Home. Scott’s leadership in the mattress industry has established him as a key player in the e-commerce space, known for delivering consistent growth and results.
Eric Hutchinson is the Co-Founder and CEO of Resident, Acquired by Ashley Furniture in 2025. Eric has over two decades of experience as a founder, having previously served as the Co-Founder and COO of Madison Reed, Inc. Prior to that, the Co-Founder of Home Value Protection, Inc., which was acquired by AmTrust Financial in 2012.