It’s good to have budgeting tools in place, even if you do not constraint yourself, you know where your money went.
It’s unfortunate that many talks revolve around money, this world revolves around money… I am confident that with good planning money talks will be part of the past.
Pros and Cons of Amazon Businesses:
Pro 1: Can set up a shop with 1 or few employees.
Pro 2: Everything is manageable remotely.
Pro 3: Can provide very good returns on investment in short time spans.
Con 1: There is a big time gap between outflows and cash flows. If you have costs today it can take from 4 to 10 months to reap the benefits of your investments.
Con 2: You need to keep pushing and reinvest constantly, even before getting your revenues. Managing cash flows is key, since you can fail even with positive profits.
Con 3: Manufacturers are selling directly. To make good profits you need more than a middleman and original concepts and IP protection are crucial.
Con 4: the margins are decreasing, Amazon eats a huge chunk of the revenues (about 30 to 40%). Once you start, you are a bitch of Jeff Bezos.
