To quit your job with Amazon FBA, calculate how much you would need to spend to achieve a 20% return on investment. Take your current job income and divide it by 20%, which is the typical ROI for wholesale investing. For example, if you need to make $4,000 per month to replace your job income, you would need to spend $20,000 to achieve a 20% ROI. While funding may seem difficult, there is a never a shortage of capital if you have a good business idea and are resourceful.
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How much do you have to earn to quit your job with Amazon FBA?
If you’re considering quitting your job and starting a business with Amazon FBA, you’re probably wondering how much income you need to generate in order to make that a reality. However, the real question you should be asking yourself is how much you need to spend in order to make that income.
The 20% Rule
To determine how much you need to spend, start by taking the amount of income you currently earn at your job. You’re going to divide that number into 20%. The reason for this is that the typical ROI (return on investment) with wholesale is 20%.
For example, let’s say you currently make $5,000 per month at your job. Divide $5,000 by 20%, which gives you $25,000. This means that in order to make the same amount of income with wholesale, you need to spend $25,000.
Supplementing Your Income
If you’re just looking to supplement your job income and make an extra $4,000 per month, the math is pretty simple. Divide $4,000 by 20%, which gives you $20,000. This means you need to spend $20,000 on wholesale products in order to make that extra income.
Getting Capital
One thing to keep in mind is that with good business ideas and good businesses, there’s never a shortage of capital. You just have to figure out ways to get it. There are several options available to you, such as getting a business loan, finding an investor, or using your own savings.
Conclusion
Determining how much you need to spend on wholesale products in order to generate the income you need to quit your job with Amazon FBA can seem daunting. However, by using the 20% rule and getting creative with funding options, you can turn your dream into a reality. Follow for more ways to grow your Amazon FBA business.
