Even though you are focused on building your company, you need to be thinking about successfully exiting the business when the time comes. Josh Dittrich is a former Amazon seller with multiple successful exits, the author of Aggregator Navigator, and the Founder of Branded Seller.com. Josh shares how to have a long-term view of your Amazon Brand, how to maximize your brand’s profit and valuation, and how to navigate the process of selling your company.
Takeaways:
- When you build a business on Amazon, you need to have the exit in mind and work backward from there. While you can’t undo mistakes in the past, you can plan for the future.
- You may not be looking to sell for another 5 years, but if you professionalize every aspect of your business, from accounting to operations, you’re bringing yourself closer to having better records and analytics when it is time to sell.
- As you build your business, you need to remove yourself from the day-to-day operations completely. When you get the business to the point where you are totally irrelevant to the operations, then the business has value.
- When you are preparing to sell your Amazon brand, you need to be cognizant of every expense because every $1 you spend takes $1 away from your profit, which will actually cost you $4-$6 per extra dollar spent when you sell the brand.
- Use an ecommerce marketplace, like The FBA Broker, Flippa, or Website Closers, to monitor and track your business’ value every 3 months. This way you will have a pulse on the market if someone reaches out with an offer.
- Start planning for the future by switching from cash-based accounting to accrual and inventory accounting. This will give you a better view of the profitability of your business. While you can’t fix last year’s financials, you can switch and fix your books for this year.
- Most of the people interested in buying your Amazon brand will be professional buyers with very specific numbers for your valuation. You need to have accurate numbers for your business so that you can make an informed decision on their offer.
Quote of the Show:
- “I challenge every business owner to explore the process of improving their valuation as they're building their business” - Josh Dittrich
Links:
Shout Outs:
Ways to Tune In:
Amazon Legends is sponsored by Argometrix, the authority on, and leading supplier of, competitive intelligence for online retail. Learn more
Amazon Legends is produced by Ringmaster, on a mission to create connections through B2B podcasts.