House To Warehouse? When Is The Time To Make The Move For Online Arbitrage?
Hello everybody, it’s Kev here from LifeSuccessEngineer.com and OnlineArbitrageMastery.com!
Now, I’m coming to you on a Sunday and I’ve just been to the office to print out my weekly goals and get myself organised for the next week, but I’ve had a really good conversation this morning with my mastermind group talking about our weekly goals, our outcomes, I highly recommend you do the same, get some accountability in there.
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One of the outcomes for this week was one of the guys is actually looking for a warehouse himself and it got me thinking because I’ve just been in and out, I don’t know if you guys do this very often but I sometimes lock the warehouse and I come out and I go, have I locked the warehouse or not? And then I have to pop back out, check it, yes it’s locked, but it got me thinking about the warehouse and the journey that we took and the jump that we sort of made from the house to the warehouse and at what point we did that, because we sort of – the discussion this morning about sort of warehouses and at what point do you jump in and the sort of the guys are working from the house at the minute, and I just thought back to really our journey when we made the jump.
You always sort of feel like it’s not at the right time, you always sort of think, is it the right time, is it worth the expense, can I afford it, and you start crunching numbers and you start thinking of your performance and the rest of it and it really got me thinking what the effect was when we first moved, and the numbers are clear. Our sales sort of doubled and tripled over the next couple of months when we decided to move into a warehouse because I sort of feel like it had a vacuum effect.
It had a vacuum effect. All of a sudden, you’ve got to fill a bigger space right, so if you picture we were in a living room, dining room, just go to OnlineArbitrageMastery.com and actually scroll down and you can see the sort of space that we were working at.
It had a vacuum effect because all of a sudden, where you once thought you were all stuck and not enough room, all of a sudden you had a massive room. You had a load of space to fill, and that really had a vacuum effect because all of a sudden straight away you’re thinking I need more products, I need to source more, how do I source more, do I need more virtual assistants, do I need more processes, do I need more ways of founding products, do I go into different categories, and all those answers came as soon as you’re in an office, as soon as you’re in a warehouse.
So it’s an exciting time for some close friends in my mastermind and I’m really looking forward to sort of hearing from their journey. They may end up on the same street as us, which is really quite cool because UPS I guess they could pick our parcels up and then pick theirs up and we can have a dinner break and go round to the café, have a nice coffee, but back to the story about the transition from house to warehouse, at what point is the right time.
Really obviously you have to think about your own circumstance and your own sort of cash flow and things, but I highly recommend if you’re serious about online arbitrage, if you’re serious about building sort of a – it’s a traditional business in terms of you are working with a location, you are working with employees, you are working with deliveries in and out and you have to set up some systems and you have to set up a working area and giving you that feeling of, it is work, is massive.
When you’re in a house, when you’re sort of working from your bedroom or your living room, it all merges together and you guys that are in online arbitrage, I’m convinced you’ll know what I mean. You don’t know when your work stops and your personal life starts and you don’t know – your living room is covered in wrapping and your boxed and the garden’s covered, so when we made the jump to warehouse, all of a sudden it had a really sort of good effect on us because it propelled everything.
Our employees had a place of work, you know, me and Kylie could go on holiday and had a place of work – it’s not like a person’s coming round to your house to work. Can you see what I’m saying? So there’s so many benefits to making the transition from house to warehouse, which we experienced massive benefits and especially when we started to ramp up and we started to increase the team, increase the flow of products to Amazon and purchasing from retailers and all the rest of it, it made a massive difference being in the warehouse.
The only way I can describe it is that vacuum effect. The effect of all of a sudden you’ve got a huge space to fill, so how can I fill that space and you start really getting into the business mindset of setting up systems and documentation and working procedures and your brain starts to come up with ways, how can I utilise this space and what is the best way of laying out the warehouse and what is the best way of organising the systems in terms of products going in and preparing and labelling and boxing and shipping quality control and UPS.
You’re dealing with UPS coming in and out of the industrial estate, different ways of the deliveries coming in and out, it really does open your mind to a traditional business and again, if anybody’s watching this and sort of thinking at what point do I go into a warehouse, it’s really the point where you know yourself.
I mean, you know when your boxes are getting too much, there’s only so much you can do. It’s a bit of a bulky work. If you’re in a living room space, unless you’re really sort of in a mansion that’s got like multiple living rooms and multiple rooms where you can utilise the space and offices and things, you’re going to run out of space very quickly. There’s just no way you can get above 5, 6, 7, 8 boxes unless you start converting garages and all the rest of it but even then, do you really want people coming into your garage as a place of work?
Again, like I said, I think it’s the mindset. I think it was the real switch in mindset of it is a sort of vacuum effect and I was just in and out, I know it’s a Sunday but I was just in and out doing some prepping, some planning for the next week and thinking of outcomes and took a picture of the To Let sign over there, and yes, so I thought I would just have a quick talk about warehouse, at what point do you go in and the effect it had.
No doubt, even to this day, we’re still thinking about how can I utilise this space. Obviously I went and on the upstairs, I ended up putting that into a bit of a workout area, which is awesome, nice benefit for us, or for me. I’m also thinking of different areas, you know, obviously you think of filling the space with your products and things but maybe one day you know, it might turn into a bit of a studio for my personal brand as well, maybe set up some camera and some lighting and things in one corner.
So yes, keep smashing it guys! Obviously if you start thinking god, I’m running out of room, then you’ve got to start thinking about it’s worth the expense because you really do have a vacuum effect and your sales do rocket, I believe. That’s what happened with our business, I’m convinced that’s what’s going to happen with a couple of my friends that are going into a potential unit across the road, and then we can get some good old coffees and some business meetings on the go!
So, thanks very much guys, if you want to know any more about online arbitrage, go on over to OnlineArbitrageMastery.com. Check out the way we used to be in our living room and yes, make the transition when it’s time. Scale up!
Bit of a different conversation about warehouse renting and purchasing, I’m potentially looking into this year – I know it’s not in my goals but I’m potentially looking in investing in a property, investing into a warehouse, a unit because when we start to out-scale this one, it’s certainly a sort of a wealth generating asset that you can potentially rent out as well and start bringing in passive income that way.
So that’s it from me guys, have a great day, have an outstanding week and thank you very much! This has been Kev from LifeSuccessEngineer.com as well as OnlineArbitrageMastery.com, inspiring people to take massive action and it all starts with planning, so cheers!
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