Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners‪,‬ Michael Veazey

Having a clear vision of your ideal small business acquisition target is crucial for success. We've explored the general principles, now let's delve deeper into defining your specific target profile.







Time Stamps







[00:00] - Introduction And Mastermind Promotion[00:54] - Overview Of Buying An Ecommerce Business[01:31] - Defining Business Size By Revenue[02:28] - Specifying Business Criteria[03:05] - Considering Your Role As Owner[04:23] - Work-Life Balance And Location Considerations[05:50] - Assessing Personal Skills And Experience[07:38] - Matching Skills With Business Needs[08:46] - Example Of Acquisition Target Specification[09:44] - Sector And Location Preferences[11:05] - Revenue And Business Age Requirements[12:22] - Profit Margin Expectations[13:24] - Preferred Product Categories[14:41] - Owner Managed Vs Management Team[15:34] - Personal Wishes And Work-Life Balance[16:33] - Personal Skills And Strengths[17:38] - Considerations For Business Acquisition Timeline[18:39] - Long-Term Project Overview[19:20] - Next Steps In Finding Ideal Business[19:55] - Closing Remarks And Mastermind Promotion







Beyond Type and Size: Unpacking Your Ideal Acquisition







Forget simply looking for "a business to buy." Instead, focus on acquiring a strategic asset that fuels your brand's growth. Here's how to define your ideal target across key criteria:







1. Industry and Product Category:









* Focus: E-commerce Retail (especially Amazon FBA) with own brands (private label or custom products).







* Rationale: Aligns with your existing expertise and leverages established fulfillment infrastructure.







* Product Categories: Ideally, Pet Supplies. Open to others with strong profitability and growth.









2. Business Location:









* Current Focus: UK-based company (for now). Future may consider USA businesses.







* Rationale: Minimizes logistical and operational complexities initially. Open to expansion later.









3. Revenue:









* Ideal Range: £1,000,000 - £2,000,000 per year (monthly ca £80K - £170K).







* Minimum Acceptable: £500,000 per year (monthly approx £40K).







* Maximum Acceptable: £5,000,000 per year (monthly approx £400K).







* First Deal Flexibility: Willing to consider smaller businesses initially, if necessary.







* Rationale: Aligns with your budget, growth goals, and resource allocation capabilities.









4. Business Age:









* Minimum: 3 years in operation.







* Preferred: 5+ years.







* Rationale: Provides a track record of performance and stability.









5. Profitability:







This is a crucial metric.









* Profitability Measure: SDE (Seller's Discretionary Earnings) or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).







* Owner-Managed: Minimum 10% SDE or 20% EBITDA.







* No Management: Minimum 20% SDE (operating profit is a reasonable approximation for now).







* Profit Growth: Ideally, year-on-year EBITDA growth. Minimum, stable year-over-year and month-to-month (allowing for seasonality). Declining profits are not ideal but may be considered.







* Rationale: Ensures a healthy return on investment and a sustainable business model.









6. Management Team:









* Preferred: Management team in place.

There's an old Somerset saying "You can't there from here." Entertaining - but not helpful. Sounds like a bad joke - and it is - but it's actually something we all say to ourselves at times.







In this humorous Mindset Moment, Michael explores whether in fact you might have this mentality blocking you too.

Buying Your Own E-commerce Business: The First Steps







Starting or acquiring a business can be one of the most transformative decisions you'll ever make. It promises the allure of independence, potential financial rewards, and the satisfaction of creating something impactful. However, diving into the world of business ownership isn't a step to be taken lightly. The first part of our podcast series, "How to Buy Your Own E-commerce Business," focuses on the foundational step: deciding whether this path is right for you.







1. Should You Buy a Business?







Before anything else, it's crucial to determine if buying a business aligns with your personal and professional goals. Owning a business requires a blend of entrepreneurial spirit, resilience, and strategic thinking. Reflect on your motivations. Are you driven by the desire to be your own boss, or are you looking for a new challenge? Understanding your "why" can help clarify whether this journey is suitable for you.







2. Should You Buy an E-commerce Business?







The next consideration is the type of business you want to buy. E-commerce presents unique opportunities and challenges compared to traditional brick-and-mortar enterprises. The benefits include a wider customer base, lower overhead costs, and the flexibility of operating from anywhere. However, it also demands proficiency in digital marketing, a keen understanding of online consumer behavior, and the ability to manage logistics and supply chains efficiently. Evaluate if these aspects excite you or if they seem daunting.







3. Do You Have the Time?







Time is one of your most valuable resources. Running an e-commerce business isn't a 9-to-5 job. It often requires attention beyond regular business hours, especially in the initial stages or during peak seasons. Assess your current commitments and lifestyle. Do you have the bandwidth to dedicate to a new venture without compromising other critical areas of your life?







4. Money Matters







Financial readiness is a key factor in deciding whether to buy a business. Understand the initial investment required and the ongoing costs to keep the business operational. This includes purchasing the business, investing in marketing, maintaining inventory, and other operational expenses. Additionally, consider the financial cushion you'll need for unexpected challenges. Conduct a thorough analysis of your finances to ensure you have the capital and can access additional funding if necessary.







5. Mental Energy







Finally, consider the mental and emotional energy required to run a business. Entrepreneurship is inherently stressful and can be mentally taxing. It involves constant decision-making, problem-solving, and adapting to market changes. Ensure you have a robust support system and stress-management strategies in place. Ask yourself if you're prepared to handle the ups and downs that come with business ownership.







Conclusion







Deciding to buy an e-commerce business is a significant decision that requires careful thought and preparation. By considering these five critical aspects—your motivation, the suitability of an e-commerce model, time availability, financial readiness, and mental energy—you can make an informed choice about whether this path is right for you.







In our next podcast episode, we'll delve into the process of defining what outcome you’re after and what you need to shop for to get that.







Stay tuned for more insights and practical advice as we guide you through the exciting journey of becoming an e-commerce business owner. If you have any questions or thoughts,

Imagine launching your amazon product launch that's brand new and achieving explosive sales within a short timeframe. Sounds like a dream, right? But what if we told you there's a strategy that can help you achieve this – and it doesn't involve a hefty advertising budget?







This guide delves into a proven influencer marketing strategy specifically designed to create pre-launch buzz and propel your Amazon product launch to new heights. We'll explore how to leverage the power of influencers not just at launch, but in the crucial months leading up to it. By building anticipation and fostering a sense of community, you can ensure your product hits the ground running and achieves significant sales velocity.







Time Stamp







[00:00] - Introduction to the 10K Collective Mastermind[00:49] - Welcome to the podcast for Amazon sellers[01:13] - Focus on using influencers for product launches[01:22] - Applying influencer strategy to new product launches[01:52] - Building relationships with influencers before product launch[02:35] - Example of makeup brand building influencer relationships[03:36] - Benefits of early influencer engagement for product launches[04:13] - Comparison to film industry marketing tactics[04:36] - Addressing challenges with maintaining sales after initial launch[05:24] - Importance of newness in influencer marketing[06:06] - Strategy for scaling influencer relationships[07:27] - Analogy with scaling advertising campaigns[08:43] - Discussion on affiliate deals and commissions[09:40] - Explanation of the halo effect in influencer marketing[11:24] - Comparison to ACOS vs TACOS in Amazon advertising[12:37] - Benefits of generous affiliate commissions for Amazon brands[14:38] - Strategies for working with influencers without affiliate links[15:27] - The followers to customer funnel concept[17:03] - Approach to paying influencers based on proven results[18:44] - Efficient system for identifying effective influencers[19:15] - Information on Tomer's newsletter and resources[20:06] - Overview of Tomer's influencer marketing system







The Long Game: Start Building Relationships 6 Months Before Launch







Here's the secret weapon of this strategy: starting early. Don't wait until your product is ready to ship before reaching out to influencers. Ideally, aim to connect with them at least 6 months before your launch date. Here's why:









* Emotional Connection: By engaging with influencers early, you allow them to become invested in your brand story. Document your product development journey and share it with them. This fosters a deeper connection and encourages them to become advocates for your brand.







* Building a "Hot List" of Buyers: Through pre-launch influencer marketing, you can create a buzz that attracts potential customers. Encourage influencers to share snippets about your product and its development process. This creates a "hot list" of buyers who are already excited about your product before it even hits the shelves.









Case Study: The Power of Storytelling in Pre-Launch Buzz







Let's look at a real-world example. Imagine a client developing a new makeup line for young girls. Due to unforeseen circumstances, the launch gets delayed by a year. However, the brand had already built relationships with over 200 relevant influencers. During the delay, they continued to share the product story and development journey with these influencers. This pre-launch buzz resulted in a phenomenal launch, proving the power of storytelling and early influencer engagement.







Influencer Marketing vs. Ads & SEO: Consistency vs. Spikes







A common concern with influencer marketing is its perceived inconsistency compared to paid advertising or SEO.

Influencer marketing is when you Imagine taking your brand new e-commerce store from zero to $30,000 in monthly sales within eight weeks. And achieving this feat without spending a dime on ads or content creation? Sounds like a dream, right? Well, for Tomer Hen, co-founder of Switch Supplements, this dream became a reality – all thanks to the power of influencer marketing.







In this guide, we'll delve into Tomer's proven strategies to help you leverage influencer marketing and scale your e-commerce brand without breaking the bank. We'll explore the key differences between influencers and affiliates, understand why upfront payments might not be the best approach, and discover how to build authentic relationships with creators who can truly champion your brand.







Time Stamp







[00:00] - Introduction to influencer marketing without ads[01:34] - Defining influencers and affiliates[02:55] - Example of successful influencer marketing campaign[04:21] - Advantages of influencer marketing over paid ads[05:55] - Importance of identifying ideal influencers[07:15] - Finding high purchase intent influencers[09:10] - Process of identifying niche influencers[11:10] - Tactics for finding influencers for specific products[13:02] - Importance of brand representation in influencer outreach[14:43] - Steps to start influencer marketing campaign[16:14] - Building an affiliate army and getting organic traffic[17:38] - Addressing concerns about sending free products[19:01] - Comparing influencer marketing costs to traditional advertising[20:35] - Recap of Tomer Henn's organic approach to influencer marketing[21:19] - Information on Tomer's free resources and services







Beyond Likes and Followers: Understanding the Influencer Landscape







Before diving in, let's clear the air. Influencer marketing isn't just about throwing money at celebrities or social media stars with millions of followers. While reach is a factor, the most valuable influencers are those who have built trust and credibility within a specific niche. These "high-purchase intent" influencers have a loyal audience who listens to their recommendations and takes action.







Now, you might be wondering: "Isn't that what affiliates are for?" There's a subtle difference. Influencers can promote your brand organically, simply because they love your product and believe it resonates with their audience. Affiliates, on the other hand, are financially incentivized to promote your product through affiliate links.







Why Paying Upfront Might Not Be the Golden Ticket: A Case Study







Tomer's experience highlights a crucial point: upfront payments to influencers can backfire. Take the example of a hair care product launched on Amazon in December. By leveraging a system focused on building relationships with relevant influencers, the brand secured positive mentions from 60 creators without any paid partnerships. This organic buzz resulted in a surge in sales, reaching $1,000 daily sales and securing the coveted "Best New Release" badge on Amazon within just 6-8 weeks.







This case study underscores the importance of authenticity. When influencers genuinely love your product and create content around it organically, it resonates more deeply with their audience. Paid promotions, on the other hand, can feel forced and inauthentic, potentially turning viewers away.







Breaking Free from the Algorithm: Building a Sustainable Brand







Now, let's address the elephant in the room: why choose influencer marketing over tried-and-tested Amazon Ads (PPC)? While PPC can be effective in driving initial traffic, it comes with limitations. Here's why Tomer believes influencer marketing offers a more sustainable long-term strategy:

Your Amazon business -that is to say, an e-commerce business based on Amazon as the main sales channel- is a sellable business. That’s the good news. The bad news is that the way you think of your business -and structure your profit and loss- may be deluding you into thinking it’s worth more than it is. Listen to today’s podcast for a reality check on small business valuation!