You’ve begun your reselling business and you’re well under way to making a profit. So, now what? You can either carry on as you are (which is a perfectly good option) or you can start upping your game. If you want to keep making more and more money you need to start scaling up. We’re giving you the rundown on how, and when, to scale up your reselling business to keep your profits climbing.
When to Start Scaling Up
It’s difficult to know when to start and to be honest, there’s no real time frame to it. It’s much more of a personal preference as to when you begin enhancing your side hustle. It’s entirely up to you as an individual reseller to gage when would be a good time.
Although, after seeing many people along the way fail and succeed, we can make a recommendation. Ideally, you’d wait until you have a constant supply of stock coming in and out before you start scaling up. This way you’ll have a consistent income rolling in whilst you begin to scale.
It Isn’t Always About the Expensive Items
Most people’s first thoughts when they consider scaling up, is to buy and resell the more expensive items. Sure, some higher cost items such as graphic cards do carry larger profit margins, but this isn’t always the case. It isn’t as simple as an item priced at £1000 being better than an item priced at £100.
How to Scale: Rinse and Repeat
Now that you are familiar with the when it’s time to learn the how. Scaling up is actually a lot easier than most people think. It’s simply rinsing and repeating. This basically means you continually reinvest your profits so you have a larger capital base. Then, you’ll reach a point whereby you have enough liquid cash to continually buy stock. At the same time, you’ll still have money invested in items that are constantly selling (and enough money to spend on yourself!)
Rinsing and repeating is one big cycle of profit. You sell stock to make money to pay for more stock that makes you more money!
If you have been generating a consistent income with your reselling for a little while, it might be time to scale up your reselling business. Start investing more of the money you make back into buying stock to give yourself a larger capital base. If you have any questions about scaling up your reselling business, talk to the Arbitrage Community, they’re there to help!