Here at Seller Labs, we’re not accountants or financial planners . . . but we do work with experts in those fields, experts who happen to be some of the very best in the business. This week, we’ve turned the blog over to one of those experts: Tyler Jefcoat of Seller Accountant. Enjoy Tyler’s five-part series on the 5 Keys to Increasing Your FBA Profitability. Scroll through the blog for all five keys to maximizing your FBA profitability.
The last key in the series is one of the most important. Business owners, especially in the beginning, find that they need to do it all. They become knowledgeable in a multitude of different areas, but their expertise rarely gets a chance to shine and scale the business.
KEY 5: SPEND YOUR TIME WHERE YOU MAKE YOUR MONEY
My dad has often told me, “Spend your time where you make your money.” What he means is that it’s easy to get caught in the whirlwind and minutia of your business and to stop doing the most-important things that have made you successful and keep the lights on.
If your core strength is developing new products, then you need to be spending your time developing new products not managing Amazon ads. If you are best at negotiating purchases and supplier deals, then stop doing almost everything else and instead focus on using your skillset to make your company more money.
The point is that none of us is good at everything, but as startups, we have to wear all hats. When things are small, we manage everything and don’t have too much trouble making time for the most-important things. But as companies grow, most entrepreneurs fail to transition to being CEOs instead of one-person-shops. This has huge implications for your profitability because your business needs you to do those things that you are best at. Handing over control of the rest is difficult, but you need to free yourself to do the work that works for you.
If you realize that you are not spending your time where you add the most value for your company, here are 3 ideas to help you embrace your CEO role.
- Outsource: Find as many headaches as you can and offload them to companies or employees that specialize in handling those headaches effectively. If accounting and bookkeeping aren’t your thing then don’t be afraid to outsource them to a company that specializes in accounting for e-commerce. My company, Seller Accountant, is a firm that specializes in owning your accounting so you can focus on doing what makes you money. Similarly, Seller Labs offers a program where their experts will handle all of your Amazon Advertising so you can shine elsewhere.
- Automate: If you are still copying and pasting individual orders for your business, or if you are trying to manage your inventory manually using a spreadsheet, or if you are manually managing ad campaigns for hundreds of SKUs, please stop! Investigate and invest in automation tools like Feedback Genius and Ignite. Often these tools can do a better job than you can do manually and they’ll save you literally hours of work per day. If you don’t find a good tool for your process, or if your process is highly specialized, there are companies like Data Automation who will build custom integrations for you so you can stop unnecessary time-consuming manual processes.
- Document Your Processes: Finally, for processes and tasks that need to be done by you or a human employee, take the time to map out how to properly do the process and what the end-goal is so that you can easily train new employees as you scale up.
Do these things so that you can take my dad’s advice and spend your time where you make your money!
So, if you want to be more profitable, you must know all of your expenses, fight for margin and velocity, think and behave like an investor, create a compelling scorecard, and spend your time doing what you do best. You can’t do everything at once, but you can pick one or two things from this list and commit to taking action this week! Your nerves and your bank account will thank you.
If you need help managing profitability or your books, Seller Accountant would love to assist you.
Tyler Jefcoat, Co-Founder and CEO of Seller Accountant, is a longtime accountant and successful business builder who excels in helping stressed out owners regain their lives while driving superior financial results.