When Justin, one of our Titan Leaders, hit $3 million in revenue within his first 3 years on Amazon, he thought he'd made it to the big leagues. Running a multi-million dollar brand was no joke. He felt like he'd arrived.
Then reality hit hard.
A 6-figure inventory bill landed in his inbox, along with a $200,000 tax bill. He had neither the cash nor the know-how to navigate this crisis. Faced with the very real possibility of his business going under, Justin had to take out a $400,000 Amazon loan just to stay afloat.
In his own words: "I was driving blind and almost crashed and burned in epic fashion."
Up until this point, Justin's story is every successful Seller's story. Chasing revenue and only using your P&L as a gauge on your financial health leaves you vulnerable to cash flow disasters.
I've been there, and so has every other multi 7-figure Seller we work with.
But here's where Justin's story takes a turn. He went on to sell his brand in a multi-million dollar deal. How? He mastered the art of cash flow management.
The 2nd hard truth of Amazon businesses is this: The faster you grow, the more cash you need. And if you don't master cash flow, your own success can become your biggest threat.