To scale … or not to scale … now THAT’S a question every Amazon FBA seller wants the answer to!
Here’s a hard-to-swallow pill. Growing isn’t the same thing as scaling.
Growing a business means your costs keep up with revenue. Your business gets BIGGER, but your ROI pretty much stays the same. So every time, no matter what, you put in $1 and you get out $3.
Now, scaling a business … that’s where the magic happens. This is what takes a six-figure brand to the seven-figure level. And this is when your revenue outpaces cost. So instead of putting in $1 and getting out $3, you get $5 … and then $10 … and it keeps going up.
But scaling is hard to do and it all comes down to timing.
Scale too soon and you build a business on a rocky foundation. Don’t scale soon enough, and you leave $$$ on the table.
So let’s get into the top three signs your Amazon FBA business is ready to reach new heights.
- You consistently surpass business goals
- You have a reliable infrastructure
- You regularly turn down profitable opportunities
- Start scaling your Amazon FBA business NOW!
- Expert resources for motivated sellers
You consistently surpass business goals
New businesses need a few months (sometimes even years) to regularly blow sales goals out of the water. And if we’re being honest, some businesses never do …
So as soon as you realize that your original goals are too easy to meet, you’ve got a decision to make:
You can sit back and hang out in the comfort zone.
Or you can challenge yourself and your business to be the most it can be.
We recommend the second one, because that’s how to add an extra figure to your bank account.
Plus, scaling increases the overall value of your business — which is an asset in and of itself.
You have a reliable infrastructure
Even if you crush sales goals quarter after quarter, if you don’t have the infrastructure to scale … it just won’t work.
Real quick, when we talk about infrastructure, we’re actually talking about the systems that help run your business.
Systems can be literal systems, like software. But systems can also mean processes. For example, the way an operations assistant gets inventory from a supplier to an Amazon warehouse — that “counts” as a system, too.
So if you’ve got things like:
- A proven concept
- A product that sells
- A motivated team
You might just have the foundation to scale up.
Another major checkpoint is your technology. For example, do you write checks by hand or do you use accounting software?
If you write checks by hand, that won’t scale — you’ll spend all your time scribbling your signature. But accounting software is (usually) built to scale alongside businesses as they take on new initiatives.
See the difference? One holds you back, the other helps you move forward.
So if you’ve got systems in place that can RELIABLY handle more business, you might just be ready to take that next step.
You regularly turn down profitable opportunities
As your business grows, your customer base gets bigger. In the case of an Amazon business, this means more people buy your product.
Over time, success starts to show through capacity. Now what we mean by this is that your network of clients starts to overwhelm your resources and you have to turn down business.
For example, your inventory sells out. There are a few reasons this may happen. You’re too busy to keep up with inventory management. You don’t have enough staff to make sure inventory doesn’t sell out. You experienced an “overnight success” moment. So on and so on.
No matter what the reason is, your business can’t keep up with demand, so some customers get turned away. There isn’t enough of your inventory on Amazon, so they find another buyer.
First of all, Amazon doesn’t like it when sellers run out of inventory. So, try to avoid this at all costs.
Second of all, this is a HUGE signal that it’s time to scale. Turning away customers may feel like a success, but you’re just lining your competitor’s pockets …
Instead, check out the top three ways to scale an Amazon FBA business and keep those sales to yourself!
Earn REAL MONEY with an Amazon FBA business NOW!
Ready to unlock unlimited earning potential and work from anywhere in the world? Here’s our list of top resources for motivated sellers:
Want even more info on how to launch and scale a seven-figure business? Take the first step by checking out this list of FREE downloadable eBooks! But don’t wait — most of these are free for a limited time only!
Expert resources for motivated sellers
- Top Three Biggest Mistakes We’ve Seen Other Walmart Sellers Make
- Here Is Exactly How To Sell On Walmart Like A Pro
- Walmart Product Listings Vs. Amazon Product Listings: Do This, Not That!
- What It Takes To Get Qualified As A Walmart Marketplace Seller
- Expert Tips On How To Start Selling On Walmart Marketplace
Matt Clark is the Chairman and Co-Founder of Amazing.com, a serial entrepreneur, and investor. He’s been featured on Forbes, CNBC, and Entrepreneur.com.