Money is an advantageous instrument. It’s magnificent to make money and a hobby or
small enterprise can be a fun way to bring more in. Hopefully, one of these start-ups can go big
and we will have arrived. At what point
does the small become big enough to manage?
As soon as there is money involved.
This is the lesson my friend Ron learned with EBay.
It Starts
With a Great Idea
Ron had a
couple of collections, tired of them, and decided to sell stuff to make room
for his other collections. He started
shipping out boxes a couple times of week, and enjoying it. Next thing you know, he’s heading out on
buying trips around the state to find more treasures. Now, he’s receiving packages a
couple times a week.
Is it Making
Money?
The gambler
will always share stories about their wins, but we rarely hear about the losses. Sound familiar? He went to the estate sale and found a $250
item for $10 and sold it in one day. Did
those Dancing With The Stars ferret outfits not sell like you expected? Perhaps they are tax-deductible donations to the
local pet shelter.
Keep Track
of Everything
When you
start your new adventure, write down specific goals. Make them big enough to justify the effort
you have decided to take.
·
How
many items do you want to list and expect to sell each week?
·
What
is the initial amount of investment? Use cash, not a credit card.
·
What
margin of profit do you expect?
·
What
expenses are their besides listing fees, packaging materials, shipping,
mileage, shopping for new items?
·
Maximum
storage space to use and cost of inventory?
·
When
and how will the profits (if any) be used?
Now, Figure out the Money
Start tracking expenses and income right away. You can do it on a computer spreadsheet or in a notebook if it’s not too many. Make sure this is a profitable enterprise, not a hobby. If your intent is to make money, make sure it really is bringing in a profit. Total it up at least monthly to see how you are doing. If you used any credit cards to start out, pay them off in full as soon as possible. Profits should be used as planned – hopefully for an emergency fund, towards a large purchase, or to invest.
How is your adventure doing? Share your experiences here. Learn more about taking control of your money at www.moneywiseadvisors.com
