Original subtitles

1 1

ROI leadtime are 2

2

the two top factors that most sellers 3

3

ignore and why most sellers 4

4

have cashflow issues. 5

5

And it's the number one reason why I was 6

6

able to scale from zero to six million in 7

7

six months. 8

8

If I wouldn't have had extreme 9

9

detail 10

10

and attention to my ROI 11

11

and my leadtime I 12

12

may have only made three hundred thousand 13

13

instead of three million in 14

14

that period of time because we'll 15

15

find out why in this video. If you have any cash all 16

16

issues you can really solve it by 17

17

just honing in on your ROI 18

18

and your leadtime 19

19

these are the two main levers 20

20

that you're going to be pulling to get success. 21

21

Now the 22

22

one thing that is dependent on this is being having 23

23

the ability to add more products and 24

24

knowing how to be successful. 25

25

But even so if you're not able to add more products 26

26

faster and you're still learning 27

27

and ROI is 28

28

going to give you the opportunity to have way 29

29

less risk compared to your expected 30

30

outcome. 31

31

So we covered that in 32

32

the expected value video where we showed that 33

33

if something 34

34

with the wristbands it could pay 35

35

off 38 X 36

36

over two years and your worst case scenario was 37

37

your last 10000 best 38

38

case you make 38 40 grand. 39

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So we're going to illustrate why 40

40

lead time is 41

41

the most important right now. 42

42

So here's the question What would you rather have 43

43

a million dollars or would you rather get a penny 44

44

and then every single day you 45

45

get to double that Penny. 46

46

And so you go off somewhere 47

47

and you know day one you have 48

48

one penny. Day 2 you have two pennies. 49

49

Day three of four pennies 50

50

and so on 51

51

and so on. 52

52

Well I 53

53

would rather have the penny than 54

54

having the million dollars because if we 55

55

do the math out here at 56

56

the end of 31 days you 57

57

end up having 10 million dollars. It's pretty crazy 58

58

growth. So this is all 59

59

because of the when you get at least 100 60

60

percent ROI. 61

61

Now you're doubling 62

62

your money every time and you go into more 63

63

of an exponential growth curve so the higher your 64

64

rOIthe 65

65

faster you grow. 66

66

But that doesn't matter if 67

67

your lead time isn't as 68

68

fast so let's say on 69

69

this. 70

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So let's say this one on the left was 71

71

where you doubled every day. 72

72

But on the left let's 73

73

say you just doubled every 74

74

two days. OK so let's say your lead 75

75

time was twice as fast to the time of two days 76

76

instead of on the left where 77

77

you have one. Well you end up only 78

78

having three hundred twenty seven dollars 79

79

at the end of 31 days. 80

80

It's because it's all about turnaround 81

81

time at the end of the day. 82

82

So you 83

83

just end up hitting this crazy exponential 84

84

growth curve the better you get your are a 85

85

Y 86

86

and the better that you 87

87

get your lead time. Now let's say that our 88

88

lifetime was two days 89

89

but we still were like 90

90

let's say I increase our y 91

91

on this other side 92

92

and we could change that graph. 93

93

Now if we take a look here 94

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on the second column now 95

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right here I've changed 96

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this to instead have a 300 97

97

percent ROI instead 98

98

of a 100 percent ROI 99

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that what that 100

100

actually means is a 300 percent ROI 101

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means you multiply your money by four. 102

102

So for every dollar you put in and you get back four. 103

103

And then when you put in 104

104

four dollars you end up getting back Sixteen 105

105

okay. And you made so 106

106

sixteen minus four. 107

107

You have twelve. 108

108

OK. 109

109

So that's three hundred percent ROI cause 110

110

that's your profit 111

111

and we're 112

112

able to get the same amount of growth by. 113

113

We're 114

114

able to get the same amount of growth here 115

115

and 116

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we end up at 10,737,000 regardless. 117

117

But here's the difference. We literally had 118

118

to make way more money 119

119

and all we did was change the 120

120

leadtime from two days to 121

121

one day. 122

122

Now I know this is kind of extreme where you can 123

123

ever find a one 124

124

or two day leadtime 125

125

but this is just to prove out 126

126

the point. 127

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So I focused extremely 128

128

extremely hard on my business on 129

129

increasing my ROI 130

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and lowering my 131

131

lead time. 132

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So I want to illustrate that point by 133

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making the lead time half is 134

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short. We were able to make 100 135

135

percent ROI instead of 300 136

136

percent ROI. 137

137

So that means like if you made you 138

138

had a dollar 139

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and you made a dollar on 140

140

profit on top of that the 141

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other one we had a dollar 142

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and we made three dollars a 143

143

profit. So we literally made 144

144

three times as much money 145

145

but 146

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we grew to the same amount by just having half the 147

147

lead time was as powerful 148

148

is 149

149

making three times as much profit. So one 150

150

more way to explain this is obviously lead time is 151

151

important because if 152

152

you double your money but your lead times a year 153

153

well then a dollar turns 154

154

into two after one year 155

155

and then it takes you two years just 156

156

to get four dollars so obviously the 157

157

shorter the lead time the 158

158

way better that it's going to be. 159

159

So I want to show you guys something 160

160

kind of cool. So just just 161

161

mentally remember 162

162

that image of the penny right now and 163

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I'll show you something. All right. So this 164

164

is literally what 165

165

happened to my business. I had 166

166

the exact exponential growth that 167

167

this penny example does. 168

168

And it was because I put every 169

169

ounce of my energy and 170

170

time and effort into decreasing my lead time 171

171

and increasing my ROI. 172

172

So I was constantly raising 173

173

prices and 174

174

making sure that I was always getting the highest possible 175

175

ROI. 176

176

It will combined with sales obviously 177

177

but I was actually not 178

178

making as much money in 179

179

the short term because I knew 180

180

that it was helping me grow my money 181

181

grow everything exponentially. 182

182

I know it seems kind of weird 183

183

but we'll show you guys in a little bit 184

184

here. Now if I go back to the sheet 185

185

and we take a look at the 186

186

typical private label first 187

187

before I show you my example at 188

188

the top here somebody will go 189

189

and typical private label are about forty five 190

190

day lead time fifteen days 191

191

shipping so about 60 days 192

192

in between every you know like 193

193

you buys you essential 194

194

you order and then 60 days later hits 195

195

the Amazon warehouse. 196

196

All right. 197

197

So and you know maybe they're going 198

198

and getting about one hundred nineteen percent 199

199

ROI 200

200

and essentially at the end 201

201

of the day they're making a 40 202

202

percent margin so they think wow this 203

203

is great. 204

204

But what they're missing out 205

205

on is that ROI in that lead 206

206

time aspect. 207

207

So let's say instead 208

208

you were to have a 180 percent 209

209

ROI but a 43 210

210

day cumulative lead time. 211

211

Well you're able to get to four hundred 212

212

and sixty thousand dollars 213

213

instead of seventy eight thousand 214

214

dollars. 215

215

Now what happens if you were to have a 216

216

three hundred 217

217

and sixty seven percent ROI 218

218

and you had the same 219

219

forty three day lead time. 220

220

Now it doesn't seem like much of a difference. 221

221

Well it ends up being three 222

222

point five five million 223

223

dollars which is very accurate 224

224

to what I did. 225

225

These are very accurate of my numbers 226

226

of three under 67 percent ROI 227

227

and about my lead time. 228

228

Alright so above in that example 229

229

that I just showed you guys 230

230

I was altering ROI 231

231

And the margin 232

232

and the lead time. 233

233

OK. So that some people are like 234

234

well come on you can't 235

235

come on a course that makes sense. 236

236

But let me just show you how 237

237

you could by just altering lead 238

238

time. It makes an extreme 239

239

difference to your business. 240

240

So let's say we're 241

241

going and we're looking at something 242

242

and we're talking 243

243

with our manufacturer 244

244

and you know he offers a 60 245

245

day lead time 246

246

or we could try 247

247

to argue and get a 45 day 248

248

lead time 249

249

or you know we're just comparing between 250

250

two people. 251

251

And most people don't really like blink 252

252

or think at this. OK 45 days 253

253

whatever it's you know it's two weeks it 254

254

doesn't make much of a difference 255

255

and let's say it's the same margin 256

256

and everything. 257

257

Now I want to show you just how important 258

258

that 15 days really 259

259

is to your business. 260

260

Now caveat you need to be able to add 261

261

products fast like 262

262

you need to be able to add products 263

263

as fast as like you can. 264

264

But most people they can't fund them 265

265

as fast as they can come up 266

266

and create them so let's 267

267

go over to the spreadsheet 268

268

now. Alright so we take a look at 269

269

the spreadsheet right 270

270

here what we have is this is 271

271

the 60 day lead time up here 272

272

and then we have the 45 273

273

day lead time there 60 40. 274

274

OK. Everything else is 275

275

the same. 276

276

But at the end of 180 277

277

days this one is seventy eight thousand 278

278

dollars and this one has one hundred 279

279

and seventy one thousand dollars. 280

280

Now that's over 100 281

281

percent more profits 282

282

comparatively to the other one 283

283

just by getting 15 days lead time. 284

284

OK guys so I am about 285

285

to make the argument that 286

286

you will make more money 287

287

by making less money. 288

288

OK. So let me show you here. 289

289

So. So let's say OK we're gonna 290

290

we're gonna argue for that 30 291

291

day lead time instead of 45 292

292

and we're gonna hey say hey you know 293

293

we're gonna pay you nine 294

294

dollars fifty cents per unit 295

295

and said eight dollars fifty cents per 296

296

unit. 297

297

Now what we're able to do 298

298

then is yeah we get less 299

299

units for our amount invested. 300

300

But guess what. 301

301

Because our lead time is faster now 302

302

we don't have to order as much. 303

303

And what ends up happening is 304

304

we get our money back a lot 305

305

faster because that lead time 306

306

you know imagine if it was just one day you'd 307

307

only have to buy one day of inventory 308

308

and you'd get it back the next day 309

309

and then you could just keep refunding 310

310

or you could keep doing it 311

311

and you're not having to like float 312

312

all of this money. 313

313

Your risk is way reduced 314

314

so we're actually able to make thirty 315

315

thousand dollars more in that 180 316

316

days by paying more 317

317

per unit and making less per 318

318

unit. It's all about having 319

319

that capital 320

320

and being able to invest it into 321

321

more and more products. 322

322

So let's just show how this really 323

323

compounds out over time. 324

324

So let's say that we extend 325

325

this to 360 days 326

326

all the sudden you end up making twice 327

327

as much money as 328

328

you did before by making 329

329

less per unit because you're able 330

330

to keep reinvesting it. 331

331

So I hope that you guys kind of 332

332

understand how you can make more money 333

333

by making less money by 334

334

having a faster 335

335

lead time. 336

336

So we could talk about why ROI 337

337

is important kind of draw it out 338

338

here. Let's show you more later. 339

339

So let's say there's two scenarios 340

340

a and b. 341

341

One where you get 342

342

a 70 percent ROI 343

343

with a 344

344

and then you get a 200 percent ROI 345

345

with 346

346

B. 347

347

Okay. So what 348

348

the difference here is 349

349

is that you're able 350

350

to when you sell all 351

351

of a then 352

352

you get all of you know you're 353

353

able to reorder a. 354

354

And then you have 70 percent left 355

355

over. So you could put that money 356

356

into a new product 357

357

but it wouldn't have to 358

358

it couldn't be as big of an opportunity 359

359

as a because you didn't make 360

360

back the whole amount of money 361

361

as profit so you 362

362

could have to go after a smaller 363

363

opportunity 364

364

or wait until longer. 365

365

Now and B were able 366

366

to fund two more 367

367

product opportunities 368

368

because we had a 200 369

369

percent ROI. 370

370

Most people think that 371

371

margin is really important 372

372

but it's really not. 373

373

So if we take a look at margin 374

374

verse ROI I really 375

375

don't care about margin as 376

376

long as I have a high ROI 377

377

because think of it. 378

378

If you're investing all of your 379

379

money at any given 380

380

time or you're investing money 381

381

into a product you just care 382

382

about how much did 383

383

you put in 384

384

and how much do you get back 385

385

not how much of the total sales 386

386

price. So like just a super 387

387

simple example let's say 388

388

it was one hundred dollars that you 389

389

sell it for. OK. 390

390

And you only get back 10 391

391

What if you only paid a 392

392

dollar you 393

393

just 10 extra money go find a 394

394

tent. Now you could 395

395

have. 396

396

Now you have nine dollars in profit. 397

397

OK. 398

398

And then you could now go find 399

399

in theory like if you were 400

400

to be able to find this now you could go find nine 401

401

more of these opportunities. OK. 402

402

And after a one month 403

403

or like you know it just in this 404

404

theoretical world in one month you turned 405

405

one dollar into ten 406

406

and then now you have all those 407

407

nine dollars. OK so that's like 408

408

one two three four 409

409

blah blah blah 410

410

and then you turn those into 411

411

ones that grow into making 412

412

you another ten dollars 413

413

and those make nine 414

414

more products you know and then pretty soon you're good 415

415

at the frickin moon. 416

416

OK. 417

417

But that's a very unreal world. 418

418

But just just trying 419

419

to illustrate that margin does 420

420

not matter unless you're in. 421

421

You can't add 422

422

more ideas if you can't add any 423

423

more ideas and you have just a 424

424

crazy amount of money and you have no cash 425

425

flow issues then 426

426

you might want to focus on increasing your 427

427

margins and not 428

428

just so much on these ROI 429

429

opportunities because you can't add 430

430

any more sales to 431

431

your company that at all no 432

432

matter what you do. That's the only time that 433

433

margins should matter ROI if 434

434

you're trying to grow ROI helps you grow. 435

435

But if you're flat lined 436

436

Well now 437

437

you're focused on well how 438

438

do I get more of that pie to be profit. 439

439

But that's the only point and my guess is if you're 440

440

watching this video you're not at that point. 441

441

So focus on ROI To 442

442

really grow your business fast. 443

443

So I'm 444

444

gonna illustrate why this 445

445

is actually so important. And then we have a 446

446

more exact formula. 447

447

Breaking this down so you can use it tactically. 448

448

But I wanna show you guys visually why 449

449

it's important. OK. 450

450

So let's say on your first order 451

451

it 452

452

requires a stack of cash. 453

453

OK. 454

454

And then now you 455

455

have to reorder 456

456

and 457

457

you have to pay a second stack of cash. OK 458

458

but how 459

459

do you pay for that second stack of cash. 460

460

Well you either pay for it from 461

461

your pocket or from 462

462

the sales from the first order. 463

463

But if you have a long lead time let's 464

464

say you may have only 465

465

sold one maybe 466

466

25 467

467

percent of that first amount of cash. 468

468

OK. 469

469

So we've only sold 25 470

470

percent of that original order. OK. 471

471

So now take a look at this. 472

472

OK. 473

473

So we sold one fourth of it. 474

474

So we've gotten this back. 475

475

Of course we 476

476

get the amount that we paid. 477

477

But now what is your ROI. 478

478

So if we have a 70 percent ROI then 479

479

the next stack of 480

480

cash isn't as tall so 481

481

maybe. So 482

482

this is like what we 483

483

got back from the inventory. 484

484

And then here's the profit. 485

485

You know maybe like that. 486

486

OK. 487

487

So of this. But look we 488

488

only have not 489

489

even enough for that. 490

490

So essentially what we have back 491

491

is 492

492

like half of 493

493

the first order and we 494

494

have to fund this one too. 495

495

So now 496

496

we have to fund one point five 497

497

of the original order 498

498

because we didn't make enough back. 499

499

But if we were to have more of 500

500

what if we had 300 501

501

percent ROI well 502

502

then this stack of 503

503

cash. 504

504

If we had a 300 percent ROI 505

505

we'd get back the original amount plus 506

506

three. So one two 507

507

three. Oh wait. 508

508

Look we funded the whole thing. 509

509

So that is all 510

510

paid for. 511

511

We've gotten back all the money that we put 512

512

in and then we put all that back 513

513

into there 514

514

and we don't have any money issues ever. 515

515

We only had to put up 1 516

516

times the original 517

517

order... 518

518

Kind of a messy drawing. 519

519

But then here's 520

520

the thing. 521

521

Because we have such a high 522

522

ROI if 523

523

we get to the next order 524

524

by the time we've sold that 525

525

we end up having 526

526

four times 527

527

because we now have sold 528

528

a whole initial order. 529

529

So we get back all that money 530

530

for that initial order plus 531

531

three more one 532

532

you know and so two 533

533

and it goes to three. 534

534

So now all the sudden we've 535

535

paid for it by the 536

536

time that that set that 537

537

that order is sold. 538

538

We can now start three new 539

539

products 540

540

and this we never run into 541

541

cash flow issues 542

542

with this product because 543

543

it has a high ROI. 544

544

All right. 545

545

Now where does 546

546

lead time come into play 547

547

with this. If we have 548

548

a lower if 549

549

we have a smaller lead time 550

550

this is the only thing that changes 551

551

that initial stack of cash is 552

552

just smaller OK 553

553

because you can 554

554

reorder faster so 555

555

you don't have to buy as much at one time. 556

556

So if 557

557

we increase the ROI then 558

558

we get more back 559

559

and solve the cash flow issue 560

560

but we can also 561

561

reduce the amount that's required in 562

562

the beginning by having a 563

563

lower lead time. 564

564

So it's a combination of both of those because 565

565

essentially by 566

566

having a smaller initial stack you Well 567

567

let's say you've 568

568

only got so much money at any given point. 569

569

But if you each order has 570

570

a smaller initial required stack then 571

571

you can make more products. Okay. 572

572

And if it returns more of 573

573

that initial stack. 574

574

OK. 575

575

Then you have more products to fund. 576

576

So if you get a 577

577

lot of products that require a 578

578

smaller stack by having a 579

579

shorter lead time and have a high ROI 580

580

you can grow really 581

581

exponentially. But if you were if 582

582

you get a lot of orders that 583

583

are tall stacks 584

584

and small 585

585

lead times then now the 586

586

amount of cash required actually increases over 587

587

time and then eventually decreases. 588

588

So a 589

589

by choosing something with here's 590

590

just your quick little trick if you 591

591

get something with a 200 592

592

percent are ROI in 593

593

45 days or 594

594

less of lead time about you 595

595

shouldn't have too many cashflow issues 596

596

with it but if you go 597

597

with a sick like a 598

598

really long lead time and a 599

599

not above 100 percent ROI 600

600

you 601

601

running into a lot of cash flow issues. Now some 602

602

people think the way to make more money is 603

603

well I 604

604

should just increase 605

605

the amount that I buy because 606

606

I get a lower price. 607

607

While you may get... like 608

608

So let's say this. 609

609

So this like a ha. 610

610

Well if I increase my order 611

611

amount then instead 612

612

of being here for ROI I'm 613

613

now here. Look at that. 614

614

That's better. 615

615

But wait it's not like that 616

616

cause guess what you just did. 617

617

You made your stack of cash taller. 618

618

So why is that second stack taller. 619

619

Because you just bought more units 620

620

because unless you somehow negotiated 621

621

a lower price 622

622

with the 623

623

same lead time and no more quantity 624

624

required to buy it then you're of course going 625

625

to have to pay more. So if it's 10 dollars a unit 626

626

and you bought a thousand 627

627

and then you negotiated it 628

628

down to 850 629

629

but you have to buy two thousand well 630

630

you just tied up a lot more cash. 631

631

So you're ROI is higher. 632

632

But if you're running the cash flow issues 633

633

you just hide up all 634

634

your cash to make a little bit extra ROI 635

635

But you'd 636

636

actually be better off by finding instead 637

637

with that extra part of 638

638

your cash right here. You'd 639

639

be better off finding something that 640

640

would additionally have 641

641

a high ROI 642

642

or a new product because that's going 643

643

to be way higher amount than that little bit extra 644

644

that you would get by 645

645

getting more quantity. Here's the math. 646

646

So like we said 10 647

647

dollars and let's say you were getting 86 648

648

percent ROI 649

649

and then what we do is we go 650

650

back to the example we showed earlier in the video. 651

651

So I changed it to 10 652

652

and you get 86 653

653

percent ROI right there. 654

654

But let's say we negotiated to 655

655

850. 656

656

Also today we're getting one 657

657

hundred nineteen percent ROI. 658

658

So at 850 we're 659

659

getting a hundred nineteen percent ROI 660

660

but you need to look at this. 661

661

So let's 662

662

say we've invested ten 663

663

thousand dollars at 86 664

664

percent ROI But here 665

665

we have to invest seventeen 666

666

thousand dollars 667

667

at one hundred nineteen percent ROI 668

668

So as we just said you 669

669

have to get a higher quantity from 670

670

your supplier to get that lower price. 671

671

So that's why it's seventeen thousand 672

672

four the hundred nineteen percent 673

673

and then ten thousand for the 86 674

674

percent because we paid more 675

675

to have a less 676

676

minimum order quantity. 677

677

Let's just quickly look at what 678

678

I was explaining there. 679

679

So it costs you ten thousand 680

680

dollars to buy 1000 units... 681

681

And then if you were to lower 682

682

it at ten dollars apiece 683

683

and if you were to lower to 850. 684

684

You ahmm know then it cost you eight thousand 685

685

five hundred 686

686

but to get that 850 price 687

687

you have to buy two thousand units 688

688

and we're assuming that they sell 689

689

three hundred and fifty units a 690

690

month. So by buying 691

691

that's the two thousand 692

692

units. He's actually buying 693

693

about you know five six 694

694

months of inventory because I think 695

695

this is a good idea because 696

696

it's increasing my profit per 697

697

unit and my ROI. 698

698

Well you'll see why Now why. 699

699

That's a mistake. 700

700

You're selling the same amount. 701

701

OK. So you're going 702

702

to end up getting back 703

703

the same amount 704

704

and essentially you end up getting 705

705

a ten thousand dollar profit 706

706

versus an eight thousand six 707

707

hundred dollars profit. 708

708

But you have to look at how much 709

709

you invested. 710

710

OK. 711

711

So in here remember 712

712

that we invested eight thou. 713

713

We invested ten thousand dollars 714

714

and we made eight thousand six under profit. 715

715

So our ROI was 86 716

716

percent. Because we forecasted in 717

717

the story correctly. 718

718

But if you buy extra inventory 719

719

because you think you're getting less per unit 720

720

and you're just having dead inventory sitting 721

721

there you're actually getting 722

722

youre actually getting a 59 723

723

percent ROI. 724

724

What. 725

725

Well look at this. 726

726

OK so what 727

727

you're doing is you invested seventeen 728

728

thousand 729

729

but you only made ten thousand in 730

730

that time period. 731

731

OK so that's a 59 732

732

percent ROI. 733

733

So you've missed out on this 734

734

thing called opportunity cost. 735

735

So you've missed out on opportunity 736

736

costs. And that's what this whole video is 737

737

actually really about. 738

738

By lowering your lead time 739

739

you reduce your risk 740

740

and increase your ROI 741

741

you you lower your risk 742

742

and you're able to have 743

743

many more opportunities to 744

744

add. So as long as 745

745

you have the opportunity to add more products 746

746

and the skills to do that you 747

747

can't. And what you end up doing 748

748

by buying more inventory to 749

749

make more money is you'll lose 750

750

more money because you're losing 751

751

out on the opportunity to 752

752

do something else. 753

753

So what you could have done then 754

754

instead with that extra 755

755

seven thousand dollars. 756

756

All right you could have put that into something 757

757

that. Oh yeah. 758

758

The other thing that mention is 759

759

you know that extra money you did. 760

760

Yeah. You might have saved a little bit per 761

761

unit but you don't have another product that's 762

762

generating you more money either. 763

763

So there's another yet. 764

764

Opportunity costs. 765

765

I didn't even account for. 766

766

So that other seven thousand dollars you could have 767

767

put that into something that made you 768

768

86 percent 769

769

and you ended up would have actually made 770

770

more money overall because 771

771

now that you know that ends up 772

772

coming back to about oh 773

773

let's just call it six thousand profit 774

774

there. So instead now. 775

775

Yeah. Well six thousand 776

776

get messy here six thousand plus eight 777

777

thousand six hundred let's call that fourteen 778

778

sixty 779

779

or whatever and then the other one was ten thousand 780

780

115 781

781

and the additional benefit 782

782

now is you have two products instead 783

783

of one. So if you want to buy more 784

784

inventory and store it because you think 785

785

you're going to grow your business that 786

786

way. That's not a way to grow your business. 787

787

That's just a way to increase your margins 788

788

not a way to grow your business. 789

789

One other thing that you could do 790

790

is so let's say that 791

791

you have remember there's this 792

792

stack of cash you're required to buy 793

793

and you have you ROI. 794

794

OK. 795

795

So one other thing you 796

796

could do is you could increase 797

797

your prices. 798

798

So now your ROI 799

799

becomes higher okay 800

800

but you're gonna say wait. 801

801

But I sell less. 802

802

But wait 803

803

this means your stack of cash is lower 804

804

Oh wait 805

805

so you're telling me that I 806

806

of course lost capital 807

807

and I still get that nice 808

808

little boost so also not 809

809

just massively increase my cash flow 810

810

and my ROI. 811

811

Yeah that's what I'm saying. 812

812

You could sell less quantity. 813

813

Probably still make the same amount of money 814

814

or maybe a little bit less 815

815

but now youe ROI 816

816

is so huge you don't have a 817

817

cash flow issue. So then you just add 818

818

another one of those. And then all the 819

819

sudden now you're growing 820

820

really fast. OK. 821

821

So it's all about not 822

822

tying 823

823

up too much capital at any given time 824

824

because we all run into cash 825

825

flow issues as we grow. 826

826

This is how you solve that from 827

827

a mathematical standpoint and we're gonna go in-depth 828

828

with the formula video 829

829

but this is just the 830

830

general concept to lower 831

831

that lead time increase the ROI you 832

832

decrease your risk you 833

833

solve your cash flow issues. 834

834

So as we're here in my Sellics I 835

835

just wanna show you guys what this actually 836

836

looks like. If you go and apply it now 837

837

what I found was that there's 838

838

a maximum 839

839

amount of money you can make 840

840

on any given product. So what I 841

841

really focused on was getting that exponential 842

842

growth by 843

843

adding more products. 844

844

OK you keep adding adding 845

845

solve all those customer needs that 846

846

are unsolved in the market 847

847

and take over the complete area. 848

848

So I've said before that I did 44 products 849

849

and I've 850

850

been wrong. Apparently I did 100 hundred 851

851

products in that 852

852

five month period. So we just had the 853

853

exponential growth. I just want to show you guys what 854

854

it's like. Just make all these 855

855

different variations and you'll find profit 856

856

and money to be made on 857

857

a lot of them. 858

858

And some of them will 859

859

be home runs and some of them won't. 860

860

But you just got to keep adding 861

861

and I really focus on having extremely 862

862

high ROI 863

863

and some of them don't 864

864

have the highest but I just wanted to show you guys 865

865

you 866

866

definitely can make it happen. But just it 867

867

comes down to get 868

868

a high ROI 869

869

and really like I 870

870

put literally all of my time 871

871

and efforts into 872

872

focusing on my lead time in my ROI. 873

873

We had a factory in 874

874

my house. 875

875

We had all the products shipped to us. 876

876

We did all the inspection ourself 877

877

to save time. We shipped it ourself. 878

878

We would buy overnight shipping 879

879

literally every 880

880

day that I could reduce my lead time. I put every 881

881

ounce of effort into that and stayed up all night just 882

882

to make sure that everything was always happening. And 883

883

like let's 884

884

say something was gonna It was a Wednesday 885

885

and I knew exactly what time I had to get to 886

886

a warehouse at FedEx so 887

887

that I would get there on Friday. 888

888

And then that way they would start to process that over 889

889

the weekend and I would get sales out 890

890

really force everybody to get do 891

891

everything they could to get it in on 892

892

time on Wednesday because the difference between getting 893

893

it in started to 894

894

check in on Monday first Friday at 895

895

the end of this exponential curve made 896

896

a huge difference and I knew that mathematically. 897

897

So I did everything to push out 898

898

and then I made sure I was 899

899

never out of stock if I was going to run our 900

900

stock I 901

901

would increase my price and increase my ROI 902

902

so that my money could 903

903

keep growing exponentially. 904

904

I took out credit 905

905

and when I needed to so 906

906

that I could 907

907

keep up with the demand curve and 908

908

keep adding more and more products and we had like our 909

909

own factory inside the house so we could 910

910

keep adding variations in our lead time. 911

911

It was literally so small that I would come 912

912

up with an idea I would listed 913

913

on Amazon and this are running ads to 914

914

it and guess what it would start to sell that 915

915

we'd ship a couple out of our house 916

916

and I chipped some in Amazon 917

917

right away. Great. That's a new product. 918

918

Let's go. 919

919

And so being able to kind 920

920

of have this quick lead time 921

921

and turnaround was 922

922

the reason that we're able to do so much of 923

923

this in a such 924

924

a short period of time. So I believe in 925

925

this concept mathematically and from 926

926

my personal experience I turn 927

927

seven thousand five hundred dollars into through over 928

928

three million dollars in five 929

929

months of sales history and I was only by really 930

930

hardcore focus on my ROI 931

931

and my margin 932

932

or not even my Margin no my 933

933

margin my margin was kind of cool 934

934

but it was all about the ROI 935

935

and that lead times so 936

936

and testing out 937

937

and expanding. 938

938

So hope 939

939

that this has been helpful.