Professional Documents
Culture Documents
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ASM Welcome Module: Nailing
Your Numbers: How Fast Do You
Want to Scale?
As you read this training guide, you will be asked to take some simple
actions. Please take each action before proceeding through the guide.
Cash Flow
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● Goal: Build a cash machine that generates income for you
● Ramp up sales quickly at the beginning
● Focus on a good profit margin
● Reinvest part of the profits
● Keep some of the profits for yourself
● Keep ramping up the profits to grow your income
Cash Out
● Goal: Sell the business and make a windfall
● Ramp up sales quickly at the beginning
● Quickly grow your product catalog (this is the easiest and fastest way to grow
the value of your company)
● Reinvest all p
rofits
● Initial focus is sales volume
● Next focus is profits
Combination
● Goal: Cash machine with potential to sell
● Ramp up sales quickly at the beginning
● Slowly grow product catalog
● Reinvest most, but not all, profits
● Grow sales and profits to achieve more flexibility with your business
Although each person’s business will vary slightly, and a lot depends on how quickly you
get your first product into inventory, the above timeline is typical of an Amazon physical
products business that is just starting out.
This process can be repeated for your first product until you are able to scale it up to
where you want to go, or can be repeated for any additional products that you launch.
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Start figuring out your financial goals by writing your real goal below. For example, you
may write something like “My goal is to be able to quit my job in 12 months and still
have plenty of money to travel,” or “My goal is to be able to keep my standard of living
and go camping with my family every weekend.”
My goal is:
_______________________________________________________________________________________
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Before you can calculate your financial goal, you also have to know how to calculate
profits. Below is a simple way to calculate profit:
Net Profit = Total Revenue - Cost of Goods Sold (CoGS) - Business Expenses
Total Revenue: What Amazon pays you after deducting all of their fees
Cost of Goods Sold (CoGS): Product costs + Shipping costs (includes both importing
and shipping to Amazon)
Business Expenses: Advertising, website hosting, etc.
Net profit should be anywhere between 25%-40%. For example, $100,000/month in
sales = $25,000 to $40,000 in profit.
Regardless of your of your business objective (cash flow, cash out, combination), you
still need to make a profit. Take the following steps to set your financial goal:
5. Investment Models
Here are three different ways that you can invest your time and money:
1. Slow and Steady
a. Initial investment: $500 - $3,500
b. Few samples
c. Minimum inventory
d. Basic product launch
e. Basic branding
f. Simple packaging
g. Social media presence
2. Fast Starter
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a. Initial investment: $ 3,500 - $10,000
b. More samples
c. Ample inventory
d. Good product launch
e. Professional branding
f. Professional packaging
g. Social media + brand website
3. Rapid Ramp-Ups
a. Initial investment: $10,000 - $20,000+
b. Lots of samples
c. Lots of inventory
d. Big/multiple product launches
e. Professional branding/packaging
f. Partner with social media professionals
It is critical to remember that your success is NOT solely dependent on your financial
investment! The most successful students of ASM have often started in the “Slow and
Steady” group. Keep your focus on your own personal goal, completely independent of
anyone else.
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Before moving on, please do the following:
1. Write down your time commitment to the business (for example, “I will commit
_______hours to my business, per day.”).
2. Post this somewhere you will see it every day.
3. Set a calendar reminder for yourself.
Now that you have made these commitments to your business success, we will see you
in the next lesson!