Home > Sell On Amazon > Planning Your Company’s Growth (Part 1)

Planning Your Company’s Growth (Part 1)

Your company isn’t going to ‘just grow’ – you have to make it grow with planning, conscious decisions, and execution.  This is not a rah rah speech, or something that’s nice in theory but not done in reality.  It’s something you must do to have a successful, thriving, long-term business, and it is not something you can put off until ‘later.’  Fortunately it isn’t particularly hard, it just requires you to understand every aspect of your business in detail, and to spend time every week consciously looking for ways to become more efficient with what you have available to work with.

At any given time you know, or should know, how much time you’re spending on your business every week, how much profit you’re generating, how much cash you’re using to run your business, etc.  If you want to double the size of your profits from where they are today, can you do it without changing how you run your business?

If you don’t change anything about the way you run your business, it’s fair to say that doubling your profit will require doubling the amount of time you spend on it, doubling the amount of cash you’re currently using, and doubling pretty much everything else associated with your business (storage space, number of products you carry, etc.).

You need to think about every aspect of your business and decide if you’re able to double all of the resources you’re currently spending on it, and how long it will take you to double it if you’re able to.  Most likely there will be something (time or money being the most common) that will prevent you from doubling your business with your current processes, or at least prevent you from doubling it in a timely fashion.  For example, if you currently inventory 1000 different products, it will take you a while to find another 1000 good products to start carrying, even if you have the cash to double the size of your inventory.  And if you currently spend 60 hours a week on your business, you probably can’t and don’t want to spend 120 hours a week on it.  Healthy growth requires finding ways to become more efficient.

This is not something to despair about, it’s normal.  The typical sequence of events is

  • You identify some specific aspect of the way you run your business that prevents you from doubling your current profit level unless it’s changed
  • You find an improvement that will overcome the growth limiter you identified
  • You implement the improvement you thought of
  • Your business grows by something less than double its previous level
  • Something else has become the limiting factor to doubling your current profit level
  • Repeat

This needs to be a never-ending process, and it’s up to you to make sure it never ends.

Random Observations

I published the February list of potential products to sell on Amazon last week.  I’d love to hear your feedback on how it’s working out, what else might be useful to you, etc.  Either a comment or email me: golden.gate.trading.post AT gmail.com

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