Let's face it guys, selling on Amazon has made it tremendously easy for just about anyone to make money online. That being said one thing that affects the vast majority of Amazon sellers is a very focused view on the short term. The Amazon meal ticket is not always going to be around (or at least it may not be around in the same way it is now) so if you, like the majority of other Amazon sellers, aren't thinking like real business people - this article is going to show you what you should be focusing on and how to prepare your business for long-term success.
Cultivating business relationships
The thing about selling on Amazon FBA is that it's typically a pretty lonely world. Whether you're doing online arbitrage, or if you are hitting up the thrift stores, it's not absolutely necessary for you to build relationships in order to make money.
In any other business, building relationships with other people is a necessity. Whether it's someone that is mentoring you, or somebody that you bounce ideas off of as a peer, it is very rare to find any successful business owner that has done it completely and 100% on their own.
New opportunities and better ways to make money often come from situations in which someone who knows you places them in your lap. When Brett and I started the Online Empire Academy if you years back it came as a result of Brett successfully selling on Amazon, and me successfully selling information products and web applications online. I had absolutely no interest, prior to Brett, in doing anything that revolved around selling physical products online.
Start building relationships with other business owners. It doesn't always have to be business, business, business. You never know when opportunities will come your way as a result of making a friend.
Investing your profits into long-term assets
One thing that plagues Amazon FBA sellers is the over focus on cash flow. Not that cash flow is bad, I get that bills need to be paid every month, but when there is an excess of cash during the month it is either spent on more product to sell, which is a good thing, or on luxuries.
Successful business owners know that they need to build assets. The more assets that you are able to create over time, the more money you will generate in the long term.
For example, rather than spending your extra thousand or more dollars a month on luxuries, if you saved that extra money and started investing in power brands (private label products), over time you would have a portfolio of products that you can replenish over and over again. I don't know about you but for me I would take 20 successful power brands over 10,000 items that I simply resell.
Another thing that successful long-term business owners do is build systems. Now, systems don't have to be anything fancy. They can be something as simple as having a optimized and efficient sourcing route.
Here's the deal about why they are so important, when you start to build systems around your business you are making your business into an asset. That means eventually you will be able to sell your business if needed.
Just the other day while I was working at the coffee shop I met a window washer. Now, you wouldn't think that this was a profitable and systematic business (I didn't either) but as I went on talking with my newfound friend and business relationship he opened my eyes to the fact that he has built himself an asset that can be sold at any time.
He has detailed and systematic routes that he takes every day to his customers, he has a customer base that works exclusively with him, he has the same equipment for all of his staff, and so on. In fact he once sold a prior window cleaning business.
Start building systems now so that you can begin building an asset.
Building a team
Learning how to build a team is one of the more popular topics now in the Amazon FBA world. If you can build a team you can scale your business. This falls in line with the previous topic of building systems because when you take on other people you need to have a coherent way of not only training them, but having them work on a daily basis.
I'm not to go into the details of building a team in this post, just know that part of having a long-term business is learning how to build something that's bigger than yourself.
Creating new income streams
Lastly, while it's nice growing your Amazon business from $50,000 gross sales a month to $60,000 gross sales a month, one way to fast track an increase in profit is creating a brand-new income stream. There are many ways to do this
I always found it interesting that Amazon sellers, although they are killing it, are very hesitant to do things like create an info product or invest in building a web app that helps not only their business but can be sold to other Amazon sellers.
On the info product side, one thing that I found is that Amazon sellers are hesitant to teach what they know because they feel as though other people have already taught it. The truth is that every successful seller has their own way of selling and because of that there is literally an endless supply of what can be taught in an info product.
Whether it's coaching, group coaching, a video course, an e-book, it doesn't matter… You have your own way of getting things done and there are many other people who would thrive if they knew how to use your method of success.
My point is don't be stuck in one income stream. Amazon is not the be-all and end-all. In fact, Amazon can end-all in one fail swoop if they wanted to.
Hopefully these tips help show you how to prepare your business for long-term success. If you have any questions feel free to comment below.