Build an Amazon store vs. investing in one? That’s an age-old question that people face when it comes to choosing how to dip their feet into the E-Com world.
Sure, everybody talks about starting an E-Com business or an Amazon store, but there are several things you should consider:
Building An E-Com Business Takes A Lot Of Time And Commitment
Embarking on the journey of starting an Amazon business from scratch involves more than a simple desire to succeed.
It requires a steadfast commitment to rolling up your sleeves and doing the hard work necessary to build a thriving business.
Along the way, you will face obstacles, setbacks, and unexpected challenges that can put even the most determined entrepreneurs to the test.
You Have To Demonstrate Product Demand In The Marketplace
With so much competition, it’s crucial to sell a product that has been backed by accurate data and carries a clear value proposition.
Don’t be the one throwing just any product out there and hoping for the best – take the time to make sure your offering is unique, valuable, and built to stand out in the crowded marketplace if you want to go this route.
You Have To Invest A Lot Of Startup Costs And Have Plenty Of Money Reserves
Starting an Amazon business may seem like an exciting opportunity, but beware – it’s not free to start. New sellers can expect to spend close to $4,000 on inventory, fees, and other start-up costs.
You also need to aim to have at least 3 months’ worth of product on hand before you start selling. Plus, you have to store the product somewhere, either in your basement or in a warehouse.
What Is Your Experience Level?
Beware of the so-called ‘gurus’ promising you wild success with no real insight into the epic struggles of starting a thriving Amazon business. If you’re serious about making it in this game, you need to learn from the best.
Do your homework and dive deep into the journeys of successful Amazon sellers who have been in your shoes.
Save yourself from costly mistakes by never embarking on this journey without arming yourself with the knowledge and experience of those who have walked the path before you.
Why You Should Invest In An Existing Amazon Business
It’s no secret that starting a business is tough, and Amazon entrepreneurs are no exception. With the rising competition on Amazon, creating a successful and profitable Amazon business can be challenging.
Plus a great deal of effort goes into getting an Amazon business off the ground, which means it might make sense to invest in an existing Amazon business.
Plus you’ll skip the risky growth phases of the business by investing in an established brand.
By doing so, you will have the choice to sit back and watch your profits roll in while you catch up on sleep, or you can take the reins and scale the brand to new heights.
It’s a smart move that can save you time, money, and a lot of headaches. Plus once you establish a reliable cash flow, the possibilities for passive profits over the long term are limitless.
You’ll also get the added bonus of being able to sell your business for even greater returns. It’s not just a one-and-done venture, it’s a lucrative opportunity that can pay off for years to come.
Finally, you can even flip the business after scaling it to the next level in 1-2 years, which is great if you don’t have a lifetime to invest in the business.
Which One Is Right For You?
When it comes to the age-old dilemma of starting or investing in an existing business, there are a few key factors you’ll want to consider.
First, take a good look at your own skillset and experience. Are you an E-Com pro, ready to hit the ground running with an existing business? Or do you thrive on the challenge of building something from scratch?
Another key element to consider is your own risk appetite. If you’re someone who likes to play it safe, starting a business on your own might be more your speed.
On the other hand, if you’re willing to take on more financial risk in exchange for potentially greater rewards, investing in an existing business could be the way to go.
The best part about investing in a business is you can be a silent investor, meaning you don’t have to be involved in operations. You can just sit back, watch the business grow, and tackle your usual day-to-day responsibilities.
Ultimately, there’s no one-size-fits-all answer to the “start or invest” question. By taking stock of your own goals and abilities, you’ll be better equipped to make a decision that works for you and your business aspirations.
If you’re in the latter category of wanting to invest in an E-Com business, we encourage you to join the E-Com Investor’s Club, which is full of go-getters who are looking to grow their money with E-Com businesses.
To join the group, go here: https://www.facebook.com/groups/1028161928115448