Today we are taking a look at the value of using other people’s money to grow your business, the importance of compounding, and how AccrueMe's investment can facilitate these concepts for you.
One of the biggest reason Amazon businesses don’t reach their growth potential is a lack of capital. The Amazon opportunity is so vast because, if you choose the right products and follow a proven strategy, a 3rd party seller can generate a massive return on investment (ROI). Compared to traditional investment industries, such as real estate where ROIs are 5-20% per year, 3rd party Amazon sellers are consistently looking at around 5-100% per month!
So, ask yourself, with such large ROI’s, why would a 3rd party seller have trouble growing?
A lot of sellers struggle with the decision on whether to reinvest in their business to make it grow or take money out of the business to pay their bills. From a growth and personal well-being perspective, that is a terrible decision to have to make.
This is where the value of other people’s money comes in. With another source of capital matching your investments, you go from 100% capital invested to 200%. Now, suddenly you have double the capital to put towards more or better products, and the flexibility to pay yourself at the same time. More capital equals more inventory, which if used properly, means a bigger profit number to reinvest and/or pay your bills.
To illustrate this point, let's say you had the options to 1. receive one million dollars in one month or 2. a penny doubled every day for 30 days. Which one would you choose?
If you chose the penny doubled, you’d end up with more money at the end of the 30 days. Through compounding, your profits will look like this through that month: · Day 1: $.01
· Day 2: $.02
· Day 3: $.04
· Day 4: $.08
· Day 5: $.16
· Day 6: $.32
· Day 7: $.64
· Day 8: $1.28
· Day 9: $2.56
· Day 10: $5.12
· Day 11: $10.24
· Day 12: $20.48
· Day 13: $40.96
· Day 14: $81.92
· Day 15: $163.84
· Day 16: $327.68
· Day 17: $655.36
· Day 18: $1,310.72
· Day 19: $2,621.44
· Day 20: $5,242.88
· Day 21: $10,485.76
· Day 22: $20,971.52
· Day 23: $41,943.04
· Day 24: $83,886.08
· Day 25: $167,772.16
· Day 26: $335,544.32
· Day 27: $671,088.64
· Day 28: $1,342,177.28
· Day 29: $2,684,354.56
· Day 30: $5,368,709.12
This scenario above is just like your Amazon business! The difference is, you are starting with a couple thousand and you are increasing 10-100% per month.
Now, what if you started the scenario above with 2 pennies instead of 1? You would have over $10,000,000 on day 30 by taking on another 1 penny investment.
The point is, even a small outside investment can help your Amazon business grow faster while you have more cash to pay yourself.
To learn more about AccrueMe, the partnership model, and how to apply for Amazon funding, sign up here.
Ready to take things to the next level? Apply now and get pre-approved for Amazon Seller Funding from AccrueMe and double your capital.