It is entirely possible that in the next two to three years you could build an e-commerce brand that could allow you to retire.
Let me walk you through everything that backs up my wildly sensational claims, and show you the journey that I’m on as a brand builder. Hopefully, it’ll inspire you to come on that same journey too.
I’m going to share with you my roadmap for building an online business and a brand so successful that you could quickly achieve financial independence and retire early – or do whatever else you dream of doing.
I personally believe one of the greatest opportunities of building an Amazon business and e-commerce brands is not just the cash flow you can generate now, but the cash out that you can generate in a few years’ time.
We often underestimate what we can do in the long term and overestimate what we can do in the short term, and it can a whole lot of frustration when you’re building a company from scratch.
But what if we had a roadmap over the next few years that we could really follow in order to create the dream life that we want to create?
Well, that’s exactly what I’m going to walk you through today. I’ve got five goals or milestones on this roadmap that I want to talk you through. I’ll explain to you the numbers and the logic behind it – and it might just help you too.
Ultimately, we’re going to start with the end in mind, thinking ‘what are we trying to achieve here?’ Because business can be a little bit unpredictable, right? And there can be some challenges along the way. When we have the long term in mind, it can really help us to keep taking strides forward.
So the end goal for a lot of us is the income goal – what kind of income do I want to create, to give me the freedom to be able to make decisions on things other than money? For me, that’s the whole goal.
That’s the reason we started our own brands. This is the reason we started Brand Builder University, it’s to help other people do the same. If we can create an autonomous income that isn’t based on the number of hours we exchanged for it, that’s a great goal for all of us right?
Now, of course, we have to start putting a number on this and your number may be different from my number.
I’m going to go for an income goal of 100,000 pounds per year. Now, why do I put that amount? I personally believe that a six-figure income is a really great goal to work towards.
Now, there will be people out there that will tell you building a business with Amazon is a passive endeavour. Honestly, that’s a load of bull because you can leverage Amazon and e-commerce to build a far bigger business than you ever could without any of those things.
But you can’t just launch a product, and sit back, and drink your pina coladas on the beach. You’ve got to actually run this business, build your team, launch products and keep moving forward if you want to achieve the goals we’re setting out here.
I’d encourage you to sit down and work out what level of income would you be happy with in four or five years’ time? What figure would give you the freedom to live the kind of life you dream of?
And then the next step is actually to work back towards an asset goal. Because what we want to work towards is not generating this money through the hours that we work, but through the assets that we own.
Whether that’s owning property, businesses or shares in other businesses, that asset goal is going to be able to create for us this income in a much more passive way than maybe you’re doing right now. A good goal to work towards is achieving about 10% on your investments.
That means that if you want to achieve a passive income of 100,000, you would need a million in invested assets, right?
That might sound scary for some people but I’m going to show you how this is more than achievable in the next few years as you set out on your journey to building a brand.
Say your asset goal is a million pounds. How do you actually generate that? I’ve said a million times that one of the greatest advantages to selling on Amazon and building an e-commerce brand right now is that you can actually build an asset.
This is evidenced by companies like Thrasio, which have been widely documented to be raising a lot of money with the sole purpose of buying up small to medium Amazon e-commerce brands, and have been paying three to four times annual profits for these brands on a regular basis.
They were recently documented as being the fastest company in the history of the US to grow to a billion-dollar valuation.
Their sole business model is buying up brands like you and I are building. And that’s really exciting because then what we can do is set an exit goal.
So we’ve got our income goal is number one at the top of your roadmap. Number two is our asset goal, and number three is our exit goal.
This is the number we’re aiming to achieve by selling a brand one day. And this isn’t just pie in the sky, right? I interviewed someone on my YouTube channel last year who recently sold the e-commerce brand that he’s been building for around three years for multiple seven figures.
We’ve got people like Troy Johnston and Daniel Little, who teach within Brand Builder University, who have both built multiple brands and sold them for seven figures. Troy sold a brand for eight figures in just a few short years.
The reason your exit and asset goals are different is that I like to plan in some rewards that are a little more short term. When you sell your business, you might want to put something aside to buy a new car or get an extension on the house or go on that six-week road trip around America – whatever it is for you.
Having those rewards in place will help keep you motivated and give you something to look forward to whenever things get tough or your end goal seems a long way away.
So you might decide you want to sell your business for 1.5 million, and take half a million to put down a deposit on your dream house – or whatever else it is you want to do.
So how do you achieve an exit goal of 1.5 million?
Well, private investors and companies like Thrasio are currently paying around 3x, depending on a number of different factors. I personally think this multiple will increase as more and more investors come out of the woodwork, but let’s be conservative and say 3x.
That 3x would be a multiple of your profit for the last 12 months. So you can then work out what your annual profit goal should be.
If you want to raise 1.5 million and around a 3x multiple, then you need to be going after a profit of around 500,000 per year.
Let’s say you’re working on around a 25% net margin. That means your profit is going to be a quarter of your revenue, which means that your annual goal for revenue is going to be around 2 million a year.
So over a 12-month period, you need to generate 2 million in revenue and have the profitability at around 20 to 25% in order to be able to hit this exit goal that you’ve set yourself to then hit the asset goal, to then hit the income goal, right?
Based on this, you need to be generating around a hundred and fifty thousand a month with a nice spike in Q4. That’s the 2 million there. And you can start to set quarterly goals.
Based on a goal of 150,000 per month, you can decide how many products you need to be launching in your niche in order to be able to generate that revenue goal.
You might have products that are reaching about 10,000 per month once fully optimised and selling in multiple marketplaces. You would therefore need to launch 15 products over the next 18 months to two years.
And so it brings it all the way back to the here and now. You might have no products now. But you can say that in quarter one of my new business, I’m going to source my first product. In quarter two, I’m going to launch my first product, and whilst I’m launching, I’m also going to look for product two. And then in quarter three of that year, I’m going to launch that second product.
And you can begin to see how you can create this roadmap towards retirement or a roadmap to a stage in life where you can liquidate your assets and start living the life you dreamed of. And if you want to retire early, you can retire early.
Obviously, you don’t have to sell your brand. You can keep it and keep earning an income from it. But this is a big opportunity to actually reduce the amount of stress in your life.
Building an Amazon FBA business is a means to the end – getting 100% control over how you spend your time and being able to live the life that you dream of living.
So let me just recap for you. If we step in all the way back to the beginning, we’re gonna start with our initial goals right now whether that’s monthly or quarterly. That’s going to frame our annual goal.
In two to three years’ time, what we are working towards generating in a 12-month period on these numbers is 2 million a year, 500k a year in profit, around about 150,000 pounds per month in revenue, which, as I’ve said in this channel before, and as I will continue to say, is far more achievable than many people are thinking.
If you love your job, you should keep doing your job. But you should have a plan to invest to build an income so that you can get to a point where if you stop loving your job, you wouldn’t be forced to stay in your job solely for the income. You really could retire early with 1 million or more in the bank – or move on to your next big goal.
That’s the goal. That’s the dream. That’s why we do what we do, that’s why we build brands ourselves. It’s why we are so passionate about helping people with building a business to sell in our Brand Builder University community.
I hope this has helped you today. And I hope this has inspired you to come on this journey with me.
As ever, make sure you reach out if you have any questions or want to chat any of this through.
If you’re interested in building a successful Amazon business or want to build and sell your own business so you can retire early and live your dreams, we’d love to chat with you about how BBU could help.