eBay Cash! - Investing Back Into Your Business

If you want to grow your business, you will need to invest extra time and effort in order for that to happen. If you think your eBay business will simply grow by itself, you are mistaken. To expand and grow your eBay business will require extra effort, time and energy. Luckily an eBay business is much easier to grow than a conventional business. It’s almost as simple as increasing the number of auctions you list.

When expanding your business you must work on it, improve it, make it more efficient and make sure you can handle the extra work that will come with the growth of your business. As your eBay business grows you must grow with it, you must realize that in order to grow your business to its maximum potential you must work on your business. Not just sell more products.

The majority of the time and effort you invest in to growing your business should be invested in working on your business. This is very important because before you decide to list 1,000 auctions per day, you must make sure your business and you can handle it.

Before you start increasing the number of product you sell, you need to have a system that will enable you to handle the extra sales. Some PowerSellers have a team of employees working for them because they know they couldn't possibly handle all of that work by themselves.

You might need to do the same. You might need to hire help in order to grow your business. You might need to hire an accountant, a secretary, a customer service representative. This all depends on how big you want to grow your eBay business. The sellers that have a whole team of employees working for them are usually the ones making hundreds of thousands of dollars per month.

But besides time and effort, it will also take money to grow your business. Remember how many steps it takes to double $1,000 into $1,000,000? It takes only 10 steps. The only catch is you must invest all of the money you make into your next step. You can double $1,000 into $2,000, $2,000 into $4,000 etc.

If you double $1,000 into $2,000 but take the extra money you have just made and spend it, you will be back at $1,000. The more money you invest back into your business the faster it will grow and the more money you will be able to make. Instead of spending all of your money right from the start, use it to buy more merchandise and make more money.

Keep repeating the process until you are making the kind of money you have always dreamed of. Here is an example of how quickly your can business can grow if you simply invest the profits you make...

Let's say you are selling a $100 product that makes you $30 in profit / sale. It is your first month selling on eBay and you have bought a total of 20 products from a supplier in order to resell them on eBay. Each item costs you $70 which adds up to $1,400 for 20 products ($70 x 20 = $1,400)

You list the products up for auction and in your first month you end up selling all 20. Each product sells for $100, making you a total profit of $600 in one month. That's great! Let's have a party and spend the money, right? Not so fast! Instead of spending the money, you decide to invest it back into your business and buy more products with it.

Now you have a total of $2,000 ($1,400 plus $600 profit). You head over to your supplier with that $2,000 and this time instead of spending $1,400 and buying 20 products for $70 each. You spend $2,000 and buy 28 products. You list all of the 28 products you have bought and once again sell all of them.

Every product once again sells for $100 giving you a $30 profit on each sale. This time you make $800 in profits instead of $600 like last time. You take your $2,800, head over to your supplier and once again spend all of your money on merchandise. This time you are able to buy a total of 40 products to sell on eBay.

You list the 40 products you just bought, and they all sell for $100 giving you a profit of $30 dollars / sale. This time you make $1,200 in profits and sell a total of $4,000 worth of products. Guess what? You are now making $1,200 a month, which is twice more than you were making when you first started. And it is all because you resisted the temptation to spend the money you made and decided to invest it back into your business instead.

Now that you are making $1,200 in monthly profits you can afford to spend a little, but what if you decide not to? What if you decide to invest all of your money back into your business once again? What if you invest all of your profits 10 more times? Here is how much money you would be making if you decided to invest all of your monthly profits 10 more times...

You would be selling roughly $142,000 worth of products per month! Over $42,000 of that money would be profit! That's right, you would be making $42,000 a month in clean profits all because you decided to keep investing your money back into your business 10 more times. Now would be a good time to have a party, a BIG party!

Note: this is just an example and it is meant to make you understand the importance of investing back into your business. As you can see, the more money you invest back into your business the more money you will end up making. So please try and restrain yourself from simply spending all of the money you make; invest it instead. The more you invest the more you will get in return.

Now there are obviously different ways of investing your money into your business and the above example was just that, an example. What you should do once you start making more and more money is switch to selling a more expensive product that makes you a bigger profit. That way, while your business is growing, the time it takes to operate it will stay the same.

As we’ve covered, there are different ways you can invest money into your eBay business. One thing you should remember is the time your business needs your time, effort, attention and money most is when it is just starting out.

The beginning is the most important part, this is when the business is still in its infancy and much like a new born infant, this is the time it needs to be taken care of most. The more you take care of your business in the beginning, the more it will take care of you in the future.