I’m going to explain to you what the online arbitrage rat race is. I’m going to show you where you may be right now, struggling to get ahead and struggling to grow your online arbitrage business. I’m going to reveal a number of bottlenecks that are preventing you from getting to the next level, as well as share some practical tips on how to overcome them and grow your business.
Watch the video below:
We know what the rat race is when it comes to work and our finances. But if you imagine in terms of your online arbitrage business, let’s imagine the same scale we would use to demonstrate the rat race – how much time your money has to last.
As you start your business, it’s all very exciting. You are taking action, shipping in products and making your first sales. As time goes on, your revenue will go up. From the beginning, the only way is up. However, even when working for yourself, it is possible to get caught in the rat race.
You start to send products in and your revenue climbs, but naturally, you will reach a plateau. Some people really struggle to increase beyond a certain point. You might be dipping down and rising in sales, but you’re not going above a certain point. This can happen at any level. You might be making sales of $1000 per month, $10,000,000 dollars per month; it doesn’t matter, it can still happen to you.
I’ve actually narrowed it down to four reasons why this happens. This is going to be a great insight for your business, especially in Q1, and could make a big difference to your year.
The first reason why you may reach a plateau at any point is that you simply do not have enough time. It’s perfectly reasonable to expect that you will run out of time, at a certain point, to research, purchase and prep your products. This is the first bottleneck. You maybe have got to several thousands in sales, or even just hundreds, but one of the major reasons people struggle is simply because they’re running out of time. You can plan your day, but you may need something extra.
It’s possible that you don’t have the capital to expand any further. If you go from spending $1000 per month on your Amazon business to $100,000 per month, your sales, if done correctly, are going to go through the roof. You’re going to get those sales, otherwise you’re doing something drastically wrong. So that is another bottleneck.
You could run out of space in your home. This is perfectly possible, if not inevitable. This is something which I experienced because online arbitrage can be a very bulky process.
Sometimes, when all is said and done, you just can’t find any products. This happens. It doesn’t matter where you are in your business in terms of sales.
You could be running a grand a month, running the business from your home, and if you reach a plateau, the chances are that the reason is one of these four things. If you imagine you have a bathtub, and you’re filling it with water. This bathtub gets fuller and fuller. The water is revenue. You are shipping in products and your revenue is increasing.
What’s going to happen is, at a certain point, this bathtub is going to start leaking. Those leaks could be a number of different things: any of the four bottlenecks we mentioned earlier. You could be struggling to find products, replenish your best selling products – maybe you initially purchased the wrong quantities. You might be running out of capital or space – these are all leaks.
The leaks are preventing this bath getting any more water in, because you’re leaking opportunity, stopping you from going up to that next level.
In my business, this actually happened at many stages, and to some degree, it’s happening to all of us at any time. I’m not here to say that my revenue just keeps going higher and higher, because that’s just not a true representation of the business. But what this does is allow me to focus in on what it is that’s causing us problems – time, money, space or products.
When it came to time, time was the first bottleneck that I came across, because I was in a full time job. This meant that my revenue went up, then I hit the plateau within about six weeks, and I just didn’t have enough time to source anymore. I was getting up first thing in the morning and going to bed last thing at night, like everybody should do, hustling, grinding, but I couldn’t physically do any more.
My sales then started to level out or even decrease – so what I did was hire a virtual assistant. That freed up that bottleneck and I had an instant increase in purchasing power, giving me an increase in products. I solved two bottlenecks with one move. I was purchasing more products than ever before.
I didn’t have the space in my house. I started off in my living room, and it was completely full. We were trying to live a family life with a six month old daughter, and we had no space. At that point, we moved into the warehouse. I’ve been in the warehouse for nearly two years now. At that point, that bottleneck was gone and my sales jumped again!
If you’ve not got the capital to grow your business, there are a number of things you can do. I’m not going to give you any financial advice on what you should do, but you can look at alternatives to seek more money. They best way is to use any savings. I wouldn’t recommend to start lending, but you could look at the money that you’ve already got. Cut down on things. Maybe sacrifice some money you would spend at the weekend to use on your business. Money Management is always going to help!
These problems encompass the online arbitrage rat race! I really hope you don’t get stuck here. You’ve escaped one rat race and fallen right into another. You have to continuously grow and develop as you grow your business.
Taking all of these things into account will really give you a bird’s eye view of your business. It can be hard to see this because you spend so much time chasing, and I know how that feels, trust me. I have tried to find time where there wasn’t time and space where there wasn’t space.
Take it from me, don’t fall into this trap!
Do you relate to this? Let me know in the comments how you're doing and keep taking massive action! 🙂
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