Over the course of this year I realized that I needed to make some changes. I’d already automated my personal finances and begun traveling for free, but going back to college full-time required me to take a job to sustain myself rather quickly.
I soon realized this was not what I was meant to do and lost interest. You’ll notice in my monthly reports that I still set goals for this job, but it’s time to extract myself from it and achieve true freedom.
I searched for various new business models to focus in on and then landed on Amazon FBA. I listen to a decent amount of podcasts and the same thing kept popping up; I needed to give this a try!
After giving it a bit of thought I decided to jump into an FBA course to give me a better understanding of how to go about doing this. Instead of doing my usual information overload, I decided to take action the very next day and bought roughly $200 worth of product.
I know this doesn’t seem like a large investment, but I’m currently doing Retail Arbitrage which is going to local stores to find deeply discounted products to resell on Amazon for a profit.
Project Extraction – The Plan
I’m going to lay it all out here for you. I currently need to generate a profit of $2,000 /month from this business to go full-time. I’ve been getting 50% ROI on products, but let’s assume a 25% ROI to be conservative.
This means that I need to be purchasing roughly $8,000 a month to yield $2,000 profit. At first, I didn’t realize how much volume I would need to do each month, but the numbers don’t lie.
So now my weekly goal is to somehow spend $2,000 on product either at local stores or using online sourcing as well…. Now that’s a massive goal.
In truth, this is only a minor step towards a much larger goal with this business model. That’s right, this is only phase one.
Where I’m Currently At With This Business
So far I’ve only spent $992.39 in total. This includes cost of goods, supplies and education.
In sales, I’ve done $239.61 with actual profit being $143.63. I still have a lot of inventory waiting for sell. A rather slow start as I really get the hang of sourcing locally and online.
I’m not profitable yet by any means, but the rule of thumb is that it should take roughly three months to turn a real profit and until I reach the volume needed to go full-time, all profit will be put back into the business.
This should vastly decrease the timeframe needed to reach my goal.
Here is a snapshot of what I did in June.
June was all about getting set up and learning the process. Now that I’ve done that, It’s time to really throw down some capital on inventory and scale up to the volume needed.