How to Create a Profitable Reselling Business - A 6 Step Plan

have you guys ever posed the question to yourself what would I do if I just completely started this business from scratch knowing everything I know now after years of experience what would I do differently I've been wanting to make this video for a really long time because what would I do if all of this disappeared and I go back in time and I'm in my spare bedroom apartment and I'm thinking of myself I want to start a reselling business I guess back then it was more like a hobby but just way to make some extra cash and it you know all turned into this never in a million years would I have thought that that would have been the case so with these many years of experience I have been through a lot of ups and downs and I'm here to tell you that I made a lot I mean a lot of mistakes I'm hoping that by making this video today if you are somebody that is thinking about starting reselling or you are someone that has recently started reselling you can offer some advice of some mistakes that I made some ways to sidestep those and give you an actionable plan to reach your reselling goals but whatever your goals are whether they are just a hobby you want to make some extra money or you want to take this all the way to a sixf figure reselling business I think I can shed some light on ways to go about it if I were doing things completely differently like starting in 2024 which is when I'm filming this video I would use this actionable six-step plan which I'm going to put right here on the screen again this would be my plan doesn't have to be your plan that's actually what I want to talk to you about First Step One is learning that there is not one way to do reselling I don't care what anybody is telling you I know that there are a ton of people on YouTube and on Instagram and on all of these platforms telling you that their way is the best way and that there is only one way to do reselling unfortunately all of those people have different opinions so like whose opinion do you follow really got to figure out what works for you and secondly what is available in your area you guys didn't know I recently created a mentorship group called The resellers group and during one of our live calls I realized that one of the people I was talking to had not even started reselling yet I thought wow that is kind of crazy that somebody came on purchased a subscription to just learn about reselling before even starting and then I thought is it is it really that crazy it made me realize that in pretty much every other industry besides reselling for some reason I don't get it does market research figures out their resources and puts an action plan together before they even start the business and usually there are months to sometimes years of planning that are involved before a business ever starts I don't know why we don't do that with reselling we just jump in with both feet uh but if you are planning on making this profitable again whether that is a hobby or you want to take it to the business level I do believe that having a plan beforehand and being realistic about what's available to you we'll really help you to navigate the reselling world so that you can avoid some of those pitfalls there is not one way to do reselling there are many different people who are successful doing reselling and completely opposite ways and why are they successful because they have the resources the time and the knowledge to perform these tasks there are many different business models out there you could be a high volume seller where you find items for super super cheap and you can pretty much flip those and always make a profit because you are always buying items for very very low amounts and you play the waiting game where you just list a bunch of items and you wait for them to sell the name of the game in that business model is listing as many items as you possibly can which in theory sounds great because your cost of goods are always low but it does take a lot of time and effort more than any other business model to be successful at this one on the other hand you've also got high sell through rate models you have people who focus on a high ASP you've now got wholesalers you've got people that do buy sell trade stores there are a ton those are kind of the main ones that I think of when I think of reselling but there's many different ways that you can do reselling and you can't do all of them I would highly recommend taking some time to learn what the different business models are in reselling and comparing them to your own situation how much time do you have do you even like listing are you the kind of person that wants to sit at a computer all the time and list a bunch of items or do you find yourself more wanting to go outsourc Ing and go thrifting and spend most of your time there what's your temperament and lastly what items are actually available to you in your area can you even come up with the types of items that would be required to be successful in these business models for instance if you are trying to be a volume seller and you want all of your cost of goods to be low do you even have stores around you like Goodwill Outlets or stores that run sales where you can get an abundance of goods for really cheap if the answer is no volume selling probably is not for you so take some time learn about the different business models of course you're not going to know everything like most people aren't going to be able to figure out exactly what they can sell in their area uh but they can start figuring out what business model might fit their personality and what their goals are in time time is a big one guys then from there you can start to Branch out and figure out what goods are available to you in your area number two once you have kind of developed a business model for yourself or maybe you've chosen you know a couple that you're going to test out and see how they work step number two would be to start small and have a slow build I think a lot of times people get started with reselling they have like one sale and they get so excited and they just press the gas pedal before they even know if it's working what they're doing and they just go nuts buying a ton of items and listing a ton of items I get it it's very exciting it's a thrill when you sell your first item you're like I I want to do that more like if I could just keep doing this I'm going to continue selling stuff I think uh you end up putting yourself in the hole later when you do that and we're going to talk about that later in Step number four but slow build start slow try to spend the least amount of money as possible and make really smart decisions make sure that whatever you are picking up to flip really fits your business model and aligns with your goals that way you don't end up with thousands of items that are just sitting here and you don't know what to do with you really want to make sure that things are working before you put your foot on the gas pedal and increase as part of this I think one thing that I didn't do in the beginning was setting a budget for myself and also learning to set aside money for myself setting a budget can be really important so if you're going to go Outsourcing looking for goods setting a strict rule for yourself of how much you're going to spend every week versus what your goals are to actually make and not going beyond that until you figure out how to make that work once you make sales make sure to set a portion of that aside for yourself instead of just constantly reinvesting that money because you will find like all of us do you're at the end of the year and oh yeah you haven't set anything aside for taxes that is um a big tip I think all of us skip in the beginning and it is very important to set boundaries for yourself set those budgets and set a certain amount that you're going to set aside for yourself to make sure that you are profitable until you can start small and learn to work within your means you really can't expand on that because you don't know what's working yet which brings me to step number three figure out what's working start digging into the numbers a lot of people are afraid to look at their numbers if you do it in the beginning it's not scary because you're not pressing your foot on the gas pedal and not know where it's going or what you're doing like you if you're digging into the numbers you know exactly what is going on so learn those terms like your average cost of goods learn your sell through rate learn your average sale price and figure out how those numbers help you to meet your goals this is something huge that we focus on in that mentorship group is we talk about having different dials so if your goal is this you know here's these different dials you've got sell through rate you've got cost of goods you've got your average sale price and you've got your time which dials are you able to turn in order to meet your goal you don't really know where to adjust in your business or what's going right or wrong until you start digging into the numbers as a beginner I'd highly recommend looking at your numbers every single week figure out are you making money are you losing money what's going in what's going out what are fees what types of fees are there how much is shipping costing me and also keep all those other things in mind like how much money you're paying in gas are you eating out because you're having the source those things really add up and I don't think that anybody ever looks at them until it's the end of the year and you're like oh yeah I had like all these other expenses I see a lot of resellers myself included when I was first starting they don't track their numbers they wait till the very end of the year only to find out that they've not made any money at all because they are spending way more than they're actually making do this in the very beginning you will not get to that point because you will have to figure out how to make it work before expanding and listing a ton of items to figure out what is working really dive into those numbers figuring out the money that's going in and out and figure out what you're actually left with and then compare that to your time and time is a number and a metric that you really need to track as well how much time does it take you to list an item how much time does it take you to go sourcing and is the profit that you're making worth the time that you're spending if the answer is no then we got to move some of those dials and we got to figure out what's not working and how to fix it everything with reselling can be solved by simply doing analytics and looking at the numbers once you figured out what works for you you can move on to step number four which is finding ways to refine your processes so you figured out what works you are now purchasing items for x amount you want to sell them for x amount and you have you know a set of rules for yourself as far as what you're going to do in your business once you feel really really good about where you are at then you've got to get even stricter on yourself and find ways to refine your processes so now that we've looked at the broad scope of things we now want to narrow in okay I know my numbers where can I look to see where I can shave a little bit of time off or how can I maybe take 50 cents off of my average cost of goods I'm going to work on maximizing efficiencies and your costs part of becoming like a really good reseller not saying that I am uh but part of becoming a really great reseller um I just think you get to this certain point based on successful resellers that I've seen that are very profitable you get to this point where all you're doing is like you can't take in any more tips from anybody all you can do is look at yourself and constantly refine get like 5% better every single month and those numbers really add up so really narrow in specifically on your processes um become Uber efficient and find ways to do things within shorter amounts of time a lot of people get to this point and they start thinking like I need to hire because I want to list all these items and I feel like I know what I'm doing now I know what I want to pick up I know what I want to sell and now I feel like I need to hire because in order to reach my financial goals I don't have the time to list all of these items that's where a lot of people myself included mess up is they they think they need the help when they don't actually need the help yet and so by narrowing in and trying to refine all of your processes every single facet of your business and getting that to as perfect as you possibly can cuz let's be honest no one's ever going to be perfect we all make mistakes and we all fall short in some areas for one am highly inefficient when I try to multitask and that's just a block for me like I learned that instead of doing two things at once which can be Uber efficient I'm just not not capable so I've got to do this task first and this task first but I do learn to refine each task individually but you probably don't need a hire help at this point you need to refine your processes because if you can't be Uber efficient how are you going to teach anybody else to be efficient so once you figured out what is working for you in Step number three and then you've gotten to step number four and you've really narrowed in and you've started refining your processes then I think you can move on to step number five which is consider getting help by making Investments so for instance a big one for me um I you know I highly recommend everybody try to save money in the beginning but there does come a certain point where spending money can actually save you a ton of time or spending money can save you a lot of money I know it's a weird way to think about things but but for instance we were printing all of our shipping labels on a piece of paper on a regular printer and cutting it out and taping it to adhere it to every single box really did not want to spend the money on a label printer I think the label printer that I purchased was um somewhere between $1 and $150 to me it just sounded like a lot of money then uh and I realized once I finally got to a point where I broke down and bought a label printer that just spits them out on adhesive labels for you super fast that I actually could have been saving money and time all along because yes that initial investment of you know about $150 did cost that amount of money but it has SA save me so much time and my time is very valuable and I'm only having to buy the labels I'm no longer having to you know buy paper and spend all the money on tape so there are investments you can make in your business that are actually going to save you time and money and I recommend doing kind of what you did in step one with these products or these services that you might be considering using which is do the research beforehand figure out okay how much time is this actually going to save me is it worth it to spend it on a monthly fee you know maybe you want use a sharing service or if I you know make an investment into purchasing you know a printer is it actually going to save me money in the long run with my time or my money if the answer is yes I do think that Investments can launch your business forward but again I think you should do what you did in step one which is research all of that beforehand make sure they align with your goals make sure you're going to be using it pretty often but if the answer is yes to all of those questions I definitely say that you are ready to start investing in your business to save time and money I'm going to put a few just examples up here of some that I know a lot of resellers use just to spark some ideas of some things that we are talking about in this step number five in ways you might be able to invest in your business still not hiring anybody at this point which brings me to step number six at this point once you have refined everything you've made those small investments into your business then you'll get to step number six which is go back to to step number three now if you guys remember step number three is digging into your numbers step number four is refining your processes step number five is look into ways to invest in your business three four and five are ones that once you get to a certain point you'll just start cycling through over and over again I mean it really is that simple once you get to a really great spot with reselling there's really only so much you can do to make it better go back look at your numbers again refine and look for small Investments that you can make a big impact on your business might be saying Kaye I just did all of this why am I going back to step number three and four and five and that's because times change what is working one day might not be working 2 weeks from now the platforms change their processes buyers change Trends change everything can change and so by constantly cycling back on those things I think you can find yourself in a really great spot to always be up toate with what's working in your business so that is my sixth part plan on what I would do differently if I were starting reselling over in 20124 completely from scratch I will add uh a step number seven you know it's a six-part plan but I'm going to give you guys an extra one here if you get to the point where you've cycled through three four and five several times um you get to step six you're like I really don't want to go back again I feel like I've done this so many times and I feel like I'm good then you can move on to step number seven which is eventually hiring help I think a lot of people dive into it way too soon uh myself included by the way and really you are capable of doing it all on your own hiring employees getting a warehouse you know all of those bigger Investments are very costly and you really have to make sure you have your stuff together and you know what you're doing before you really expand so much that things can get out of control so please do yourself a favor if you think you're at a point where you want to hire help or maybe get a warehouse consider going back to 3 4 and five several times before deciding to make those Investments cuz I really think you have to know what you're doing feel really good about your numbers and be super efficient before ever bringing anybody else into your business well that's it for my sixpar plan I hope that you guys enjoyed watching I've been asked to make videos like this um a few times of what I would do different ly or how I would start over if I had to start over and knowing all I know now over many years of reselling that is exactly what I would do to a tea if you guys are not already and you like this kind of content and you want to see more consider subscribing below and hitting that notification Bell if you hit the notification Bell you'll be notified every single time I post content thank you guys so much for watching I hope this was helpful and I hope that you guys are successful in your reselling business I will see you guys in the next one bye [Music] he

Channel: Cayley Elaine

Views: 40,711

Keywords: Reseller, Ebay, Poshmark, What Sold on Ebay, What Sold on Poshmark, Ebay Sales, Poshmark Sales, thrift, make money, at home jobs, stay at home jobs, ebay selling, ebay reselling, poshmark selling, poshmark selling tips, jobs for moms, reseller, resellers, reselling community, how to sell online, how to sell on ebay, reselling business, ebay business, poshmark business, how to sell on poshmark, entreprenuer, small business, work from home, side gig, side hustle, online jobs

Id: F6ek2iqvZsU

Length: 18min 16sec (1096 seconds)

Published: Tue Mar 26 2024