I must admit I was wrong. So wrong that when I found out “I was wrong” I almost wanted to cry.
No, it was not a cry for sadness, but rather a cry for joy.
I came to realize I was modeling my online business after those cash sucking Silicon Valley Start Up companies.
let me back up a little bit and tell you this story…..
After some in depth analysis on Amazon affiliate income and predicted how much I could make at the end of 2015, I decided to go full scale by hiring and expanding my team. I was not thinking about how much I was spending but rather how much I could potentially make. I started off by hiring people and spending a lot of time delegating all the tasks including analysis and collecting site data.
It was an exciting time. We managed to accomplish a lot but soon the reality hit.
A lot of the work we did ended up producing “nice to have” stuff like data analysis, beautiful graphics, Social likes / follows etc.
I was running out of money FAST and the website traffic wasn’t increasing. Revenue was inconsistent month after month and not enough to cover the cost.
Eventually I had to let my team go.
I was not thinking like a frugal entrepreneur but rather a CEO of a venture backed Start up….. even though it was backed by my full time job paychecks.
The Book: Profit First
I was depressed and sad.
Around then, I came across to a book called Profit First. Essentially, it talks about why many small businesses fail by not paying the owner of the business. A lot of the business owners have the typical Silicon Valley mentality.
I was one of them. How wrong was I to think the only way to grow a business is to put more money in it.
So, I took the advice and scaled it down. Started only working on tasks that mattered such as SEO my sites and building backlinks.
It was tough. I mean REALLY tough. But slowly it started to pay off.
Where I am and where I want to be
I am not out of the woods yet. Thanks to cost cutting and slow but steady revenue increase, the business has been breakeven for a few months now and even creating a small profit.
Now I can use that profit to get some help on the tasks. I want the business to be self-sustainable and keep it that way. It may grow slower but at least I can sleep better at night.