Online Arbitrage $1,000,000 Secret Revealed 📈 | Success In Business 💰| Online Arbitrage 📦 | Ep 08
I’ve been reflecting on my online arbitrage journey and what has helped me get past the 7-figure mark in my business, and as I thought back on all the successes and failures I’ve had, I’ve started pinpointing some key elements that would help others replicate the same success!
Secret revealed: ACCOUNTING!
I hope you implement this tip into your business and raise those standards, or if you’re already at that standard, keep doing the same thing, because it’s going to make you crystal clear on your numbers.
I’m not an accountant and I can’t give you legal advice, but I just want to share with you how I’ve set up my accounting and purchasing sheet in my business! I’ll be sharing how I built it and how it’s allowed me to know exactly what is going on in my business. This has fundamentally been the one key to my success.
The simple reality in business is, you have to be very, very strict with your numbers. You need to be crystal clear on your numbers, especially in online arbitrage. You are selling hundreds and thousands of products, if you want to get to the 7-figure mark, you need to take care of that cash. The secret to that is knowing what you’re selling products for and managing and replenishing it.
I’m going to be sharing how I set up my online arbitrage live purchasing spreadsheet, which has allowed me to identify everything in my business. I can go back to the very first sale and give you all the information, and it’s so important that you raise your standards and you live by this as well.
My goal here is to give you some ideas for how to manage your business, and if you’re already doing this, that’s fantastic!
My Purchasing Spreadsheet
I track everything, and I’ve also evolved my spreadsheet over time. When I first started in 2015, I didn’t have every detail in. As I’ve grown and extracted myself from my business, I’ve needed to know certain things.
My top row KPI allows me to see the critical things in my business.
- Purchasing target – this can be whatever your target is.
- Purchasing done so far – this allows me to see each day of the month how we’re doing, how many units we’ve purchased so far, and I can also see what target percentage we are at.
- Cards – you can put in the cards you use for your business, and this allows me to see the balance on each of my cards that I use for my business. I can then outsource purchasing, and everyone can see the availability on each card, which is very important.
- Today’s purchasing – this allows me to see what we are purchasing everyday!
- Reference – this allows me to keep track of all the items I’ve purchased. I can see how many units I purchased, what the item was, how much we got it for, and how much we sold it for.
These are some key pieces of information I add to my purchasing sheet.
- Name of product
- Store name – you can eventually group these and see where you’re buying from over time.
- Store URL
- Amazon URL
- Buy for price
- Sell for price
- Quantity ordered
- Quantity received – this helps because I now have a warehouse with so many products being shipped at a time. The more you scale, the more you have to be in control!
- FBA fee
- Profit margin
- Profit per item
- Total buy for price
- The date of purchase
- Shipping cost
- Discount (if any)
- Order total price
- Order number
Having all this information allows you to see and make sure you have all your calculations, products and orders right. Once you start to order in bulk, you can make sure the order total matches the spreadsheet, you can match your VAT invoices and receipts.
Having a list of your business cards is also really helpful and gives you insight into how you are purchasing for your business! It’s a good way to make sure cash isn’t going missing and keep track of the blood of your business.
You can also start to conditional format different columns to give yourself a better visual representation of how your business is doing.
You can also use different colour codes for various stages in your purchasing. For example, in my business, I have different colours for stages:
- Due for ordering
- Ordered/expected to come in
This is a really good way to keep track of your products and make sure things aren’t going missing, and it’s the same if you’ve got two orders or 22,000 orders.
I highly recommend that you take the time to think about how you’re monitoring your business, and if you find some of these things useful, implement them in your business! It’s a continuous process of adding things as you grow!
This is going to change for me because I know that business evolves. We’re going to add new things and come up with new ideas. You can then start to do your expenses, your cash flow, you can see how much you’re spending and really plan ahead and make sure you’re on track.
This is really brilliant because no matter where you are in terms of your accounting, you can simply take a copy of this and send this to them!
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If you have any questions, let me know in the comments! 🙂
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