Hi, my name’s Youn, and I am an expert at failure. I’m excited to share the lessons I’ve learned from my mistakes in the hopes that you can avoid making them as well.
Here are the top 3 mistakes I made when starting my Amazon business that I’ll be covering in a series of blog posts:
- Quitting my full-time job too early without a runway
- Having NO Processes
- Missing an Amazon Seller Network
My biggest mistake was quitting my full-time job too early to pursue my Amazon business full-time.
I was a foolish fresh college grad who thought I could launch my own business. I had no idea what I was getting myself into. But my monthly Amazon sales looked like it could soon rival the salary of my full-time job and it would be so much more rewarding to be my own boss.
Before you decide to quit your full-time job, especially if you are an adult with family responsibilities, make sure you have a runway aka the funds to sustain your entrepreneurial dreams for however long you think is comfortable. Most people would say 6 months is a good number but in my opinion, I would say a year to two would be the safest bet.
I messed up and thought that eating ramen and living at home as I built my empire would be romantic, especially since it wouldn’t be that much different from the college life I had just left. It’ll be two years for me soon and while I’m no longer mooching off my parents, I’m still nowhere close to where I thought I would be.
Most people drastically underestimate the time and effort it takes to achieve something. Building a successful business is a massive undertaking and removing financial anxieties is critical to your success, especially if you have family responsibilities.
Because most people drastically underestimate the time it’ll take to achieve success, they quit before they make it. I thought about quitting my Amazon business at least once every few months. I’m lucky I didn’t quit but I’m also a single lady with no kids or responsibilities. If you have a partner and/or kids and you decide to quit your full-time job without taking the time to think things through or without a proper safety net, you will be putting everything you love and value on the line. So please take the proper precautions and have a good runway.
Here are some steps to prepare you for the full-time leap.
1.Talk to your spouse and family and make sure you’re all on the same page.
You NEED the support of your loved ones to succeed in entrepreneurship. Entrepreneurship is a roller coaster ride and your loved ones will be taking it with you. Make sure you have their support. There will be highs but there will also be lows. You could tough it out on your own, but I promise you, there’s no better feeling than being comforted by your partner or commiserating on the grind with a fellow friend.
- Determine your monthly expenses, personal AND business.
Figure out how much your personal monthly expenses are. What’s your mortgage/rent, car payment, student loans, etc. Are you going to be working from home or getting an office? Do you already have ten million subscriptions to Amazon software like I do? AppEagle burning a hole in your monthly pocket? Make sure you know your numbers like the back of your hand.
** SUPER IMPORTANT: For those with jobs that have amazing insurance, research your healthcare options, and how much it will cost. For example, if you know you’re planning to have children in the near future or have expensive health issues, research the costs and weigh the pros and cons of losing coverage.
* Bonus tip: I thought I had a good understanding of my business’ financials and then I took Cyndi Thomason’s Profit First course at Seller Success Academy and it blew me away. Half the other Amazon sellers in the course admitted that their brains melted in our first class. I highly recommend Cyndi’s Profit First course to every Amazon seller. I used to feel like I couldn’t sleep at night. Thanks to Cyndi’s course and her Amazon Profit First Allocation Cash Flow spreadsheet I do every month, I sleep a lot better now.
- Figure out whether your Amazon business can replace your full-time salary.
Now that you’ve figured out how much you need to make in order to go full-time, analyze whether your Amazon business is already at the stage where it could sustain your lifestyle if you quit your job. There are many sellers who are making more than their full-time salaries in their Amazon business but are too scared to take the leap for one reason or another.
If your Amazon business is not at the stage where it could sustain your lifestyle, figure out how much you would have to do either in revenue and/or profit to make the leap. Then determine whether if you could utilize “The Power of Broke” to muscle your way there if you were to quit your job and go full-time.
- Determine whether you’re ready to make the leap and if not, when?
In my last session with Jamie Miralles, the founder of Seller Success Academy, we discussed my lack of focus. I personally know that I couldn’t juggle a full-time job and give my Amazon business 100% at the same time. That’s why I made the personal choice to quit my job, although it was too early. However, if I could do it again, I would wait until my Amazon business consistently made enough to replace my salary for three months straight before I quit my job.
However, this is your personal decision. Figure out when you’ll be ready to take the leap and then take it.
Bonus Step. Join Seller Success Academy.
If your Amazon business is not ready, I highly recommend joining Seller Success Academy and joining the ranks of fellow 7-figure Amazon sellers. I’m not at 7 figures yet, but with the help of SSA, I have been building my processes slowly and surely. Not only that but having a coach to guide you on things like mindset and processes, what you need to prioritize, is priceless. Last but not least, being in a mastermind with sellers that are doing way more than me, is always inspiring. See you at the top.