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My husband and I have been selling part time on eBay since 2016. He plans on quitting his full time job and going full time with eBay. I told him we need to figure out medical and dental insurance and he needs a new phone since his company pays for his. Is there anything I am forgetting to do before he takes this leap? Any suggestions and tips are greatly appreciated. Thanks to all in advance!
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I know that this topic has come up several times in the recent past. One suggestion I’ve heard a number of times is to do the numbers. Specifically, how much money do you need just to survive. This would include mortgage payment, food, gas/electric, phone, internet, etc. This would be the minimum profit you would want to have each month on eBay. Do you already make that amount? Or how much more do you need in sales to get there?
When estimating profit due to increasing the size of your store, take into account that sales will not go up linearly with the number of items you have available. As you buy more inventory, you will probably buy more long tail items and sales will not increase hand in hand with purchasing.
You should have several months salary in the bank before quitting in case of an emergency.
Anyway, these are some of the suggestions mentioned in previous posts about this subject. I’m sure that many other people will chime in. However, you can use the “Search the forums” search box (on the right hand side if you scroll down) to find older conversations on this subject.
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Yep, as Sharyn said, there are basics that most of us always recommend:
–Make a budget to make sure your minimum profits can handle your bills.
–A budget will probably show you where you can slim down some expenses (eating out, expensive cable TV package, …)
–Have at least several months of money saved up to get you through lean times.
–And most importantly have some long conversations together about what your goals are and how you’ll get through things if the business doesnt go exactly as you predict. Your husband has to really be committed to working for himself full-time without having a “boss” looking over his shoulder. -
This area is one of great passion for me, since Veronica and I took the plunge in 2015. Sharyn has hit all the big points.
KNOW YOUR NUMBERS! By that, I mean you have to have at least a years worth of weekly inventory, sales ($ and units), and COGS as a start. By using that, you know what you can reasonably project going forward.
Realize that even when sales are slow (and you should know based on your historic numbers when your slow time is) that you still have to buy inventory. What is your average purchase price? How many items can you list each week (reasonably)? Average COGS time Number Listed is your capital requirements EVERY WEEK. If you ain’t listing, you ain’t selling either. So you need to have those capital requirements known before you start.
And those are separate from your personal requirements as well. I’m thinking that maybe Jay and I should have a good talk about this subject on the PodCast soon. It is very important, and I know we come at it from different (yet strangely similar) perspectives.
Hit me up directly if you want to talk over numbers. tsatterf@yahoo.com
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For me, a paid gym membership with classes at certain times. If I don’t have to pay for the membership, I won’t use it – that’s just how my brain works, I want to get the most for my money. The structured classes means that I am expected to be there at a certain time each day, no putting it off and never actually going.
This helps structure my day and actually gets me out of the house and interacting with other people. Plus, I always feel better after I’ve exercised.-
Little luxuries are important for a good quality of life. I will always spend money on upgrading our seats on flights because I need the convenience and room. I always feels pampered when we upgrade.
But we always recommend limiting luxuries. For most people, everything is needed. If you eat out each night, then eating out is no longer a luxury or special.
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Jay: As Lazarus Long said…”Budget the luxuries first!”
But also agree with your other thought…limit what is a true luxury. And that is a lot about knowing yourself, your family, and what true wealth is. We lose sight of that it this country very quickly, just how truly wealthy we are…
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