It’s no secret that our Rainmaker Families are all about dropshipping. But dropshipping in and of itself doesn’t have to be the end goal of your business. When you create a dropshipping business, you have two options:
First, you can grow it to a level that you can handle and rely on it for moderate passive income that will help build your family’s wealth. But if you want to take it further, you can scale up your business to create a company that you can eventually sell for a substantial profit.
This requires a different type of work and mindset, but if you’re willing to put in the initial effort, it will pay off!
To learn how to start building wealth for your family, join us through the Rainmaker Family Challenge.
If you’re planning on creating a business to eventually sell, it needs to be a scalable business. A scalable business is a business that can maintain or improve profit margins as the business grows. This means that you’re able to keep up with increasing demands without losing too much of your own time. Dropshipping is a great example of a scalable business because there are ways to keep your own hands relatively free as it grows.
A dropshipping business involves selling products that other people have warehoused. These could be products that you’ve designed, or just products you buy from a manufacturer and have shipped directly to your customers. When you compare this type of business to a business where you yourself find, warehouse, sell, and ship your own products, the scalability is obvious. Warehousing takes a ton of space, and packaging and shipping takes a ton of time. But if somebody else is handling that part of the business, you can focus on creating listings and growing your business for even larger profits. Yes, there is an initial investment into the products– but the returns can make up for that, especially as you scale up.
You need to own your business and not let your business own you. If you find that you’re missing out on family time– like if you’re constantly checking your laptop on family vacations to fulfill dropshipping orders– your business owns you. One way to deal with this problem as your business grows is to hire freelancers to help you out in places you need it. Freelancers can be temporary workers to fill a short term need, or they can be longer-term employees who help you with areas that are a little more complex than you want to deal with. One thing is for sure: you can’t scale up without hiring people.
One place where you should definitely outsource your labor is bookkeeping. Even if you’re a CPA, you shouldn’t try to keep the books for your own business. It’s a surefire way to make your business more complicated– and in the world of small business, more complicated typically means less profitable.
If you want your business to succeed as you scale, you need to create systems. This means creating a set of standard operating procedures that ensure everything gets done correctly. Systems are great because once you have them in place, your business can scale up as new employees learn the system. Systems mean you aren’t constantly reinventing the wheel or solving the same problem over and over. Instead, you can rely on your systems to maintain the business framework as your employees or freelancers work within them.
Systems also mean that your business maintains value when you sell it, because the new owner will know that the business’s practices can be maintained through the transfer if everybody just keeps working within the systems. Take the case of one woman who was an Amazon seller with a business that seemed valuable. Her business was estimated to be worth over six figures, but when she sold it, she could only get eighteen thousand dollars out of it because she didn’t have any systems in place to keep the business running.
Understanding systems is super important for parents who are also entrepreneurs, because systems mean you spend less time with the business and more time with your family– even as the business grows and scales up. Our Rainmaker Families are just that– families– and we don’t have to compromise on building wealth or spending time with our families. We can do both! Systems will let you manage more and do more while still spending plenty of time with your kids.
Growing And Learning
It takes work to put a scalable business together, and to create the systems that will help keep it running smoothly. At the end of the day, your success depends on you. But you don’t have to do it alone!
If you’re ready to step into the world of dropshipping or other passive income business, join us through the Rainmaker Family Challenge. We can teach you the skills you need to improve your personal finances, make money, and find a source of passive income that will grow your family’s wealth without taking you away from them. Sign up with us today to get started!