Christian Verhoeven of Prisma International
But then after reading Cindy’s book, I, I realized that while profit first works for almost everybody, it needs certain kinds of adjustments for an e-commerce seller. Yeah, and that’s when I decided that I wouldn’t do all that. I used to be a chef and worked in festival production later. And so I was always doing gig work where I had two weeks on and two weeks off. And then my two weeks off, I decided, you know, I could make a little bit of extra money selling things online. So at first I started out as a reseller on Amazon quickly got into you know, retail online arbitrage and then moved into wholesale. And then after getting a few wholesale clients, I, I took the private label course and then found out that private label was really what I was good at was private label selling.
So the business has been around for about four years and that’s been managing it full-time since 2018, since I didn’t necessarily come from a business background or, or wasn’t even self-employed I always try to make up for that perceived lack of knowledge that I have by reading quite a bit. And I know I read about profit first around that time. But what really stuck out to me was that Mike describes it, the book that the whole system really came out of his grandmother’s you know, way of dealing in all the cash that came into the house and putting it away in envelopes. And that, that cash was, was meant for a special purpose. And I actually remember my grandma doing the same thing. So I, I, I sort of had a personal connection to the problem for us from the get-go the business was growing so much year over year, but it wasn’t necessarily a sustainable growth.
So I always kept trying to take out another Amazon loan, get a cabbage loan after every two, four, I thought, you know, I’m going to come out of this and be healthy and know just, just exactly how much I’m going to be spending on inventory this year. And it never quite worked out. And I realized I needed a radical change if I was going to have any idea of what my numbers actually were at first implemented a kind of a, you know, personalized version of profit first after reading the book. But then after reading Cindy’s book, I, I realized that while profit first works for almost everybody, it needs certain kinds of adjustments for an e-commerce seller. Yeah, and that’s when I decided that I wouldn’t go all in my has changed considerably since working with books keep and while I will say that the, the whole team at books scape is fantastic, and I feel that I’m in really good hands in general, working with books, keep, I just feel a hundred percent confident that my books that are on point I get reports and check in calls.
Every month profit first has changed the way that I think about managing inventory cash separately from operating cash flow, just in terms that I always know how much I have available to buy new inventory. So with one look at, you know, the purchase orders that I created and then another look at my bank account. I knew exactly how much I could afford to order and not end up in a situation where, where I either under warded for fear of running out of cash or ordered, it’s just given me a lot of security that if I spend the money on inventory, it would go right back into my inventory account and allow me to purchase more. The profit first method is the way to go when setting up a business just because it’s really hard to change your ingrained habits after you’ve been doing them for a while. So just go for it. There, there is a time as the e-commerce seller where you, you know, you pass a certain threshold of monthly revenue and you just need to find the money to spend on a good bookkeeper because without a good bookkeeping service there there’s no going forward.
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