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March 11, 2024

Are you using the right wealth vehicle in your business?

Vehicles as a metaphor – are you using the right wealth vehicle in your business?

This is Michael Veazey from Amazing FBA – today I want to continue my mindset thoughts on travel and today we’re going to talk about vehicles. What can that do for us as a metaphor in business and in life? Stay tuned.

The 10K Collective Mastermind

Hi, I’m Michael Veazey from Amazing FBA and I’m the leader of the 10k Collective Mastermind, for private label sellers and product brand owners who sell at least half a million dollars a year or more on Amazon.

Over the last five years we’ve had members triple their revenue in one year, grow to eight figures and one member get to a seven- figure exit. Now we’re taking it to the next level. I’m excited to introduce the 10K collective Uber mastermind.

It’s a unique combination of peer group support in person and online and specialist coaching.

If you’re ready to take your business to seven figures and beyond, just click “Mastermind” to find out more today.

Wealth Vehicles

Hey folks, I’m currently driving a car and this makes my thoughts turn to travel and specifically within this mini-series about travel and mindset lessons in business and in life.

I’m going to talk about vehicles or things that get you from A to B. Obviously, that applies in the real physical world and it applies in as a metaphor for wealth as well.

I feel like the Milk Tray Man

Today, I’m going to be, I’m a bit like the milk tray man. If you remember the milk tray man from the eighties showing you what age we do, then he was a man and it was a man, sorry to be sexist that he used to dress up in black and act like a secret agent jumping out of trains and into cars and scaling buildings and crushing through windows on some kind of harness and then rappelling back out the window all to deliver a milk tray and the tagline was all because the lady loves milk tray.

By the way, side note what a brilliant piece of advertising that, that brand name and that product has stuck in my mind. Like a splinter because of a really powerful story, which was kind of cheesy and everyone enjoyed sharing.

But I feel a bit like the milk tray man sometimes. Today is a case in point.

My many actual vehicles for a journey

So I’m driving a car from a rental property that I own that needed some work on today to Bristol where I am going to leave the car get on my folding bike, and get on a train. At the other end of it, I’m going to get off in London, cycle on my folding bike having unfolded it, of course, and then probably finish off with a playful bit of underground trip, or rather the other way round I suspect.

And then I’ll finally be staying with some friends, and then eventually tomorrow, because there’s a train strike, I’ve got to do some work in London, and then I will eventually Jump on a bike, and then get on a train, and then get on a bike on the other end, and then I’ll get back home. Whew, it’s exhausting to think about it.

Well is that rational? Why am I using so many vehicles? Couldn’t I have just used a car?

Yes or no.

The right vehicle for the right purpose

There’s a reason for it, and sometimes there is a right vehicle for the right purpose at a certain time and place and a wrong vehicle for it. And that applies literally if you’re thinking about logistics, vehicles, and, broadly speaking, forms of transport to move goods and services.

It’s also quite complex and I’m moving myself around in order to deliver myself one-to-one to do some services tomorrow and if you’re moving bulk cargo or a lot of widgets that you’re going to sell on e-commerce, the same sort of thing applies.

Financial vehicles

It’s also a metaphor for financial vehicles which is used often as a metaphor, people talk about this, the right financial vehicle for you to increase your wealth in investing.

So let’s take those couple of metaphors because those are pretty productive, particularly for anyone who’s in e-commerce. Let’s be literal-minded at first. A lot of people are a little bit little-minded and they don’t really like metaphors or they kind of go from metaphor to literal. So let’s be literal for a second.

Literal vehicles and your supply Chain

A lot of people don’t give enough thought to vehicles or means of moving stuff from A to B in their business logistics. If you are lumping everything together and you leave it to somebody to just solve it for you, you may not be thinking about your supply chain, which is a broad, abstract-sounding name, but a lot of it means moving things from A to B and not just finished widgets either.

Intermediate products are also being moved around

The truth of international trade is that a lot of trade these days relies on intermediate products being shipped. So, for example, you might get plastics from a plastic factory, so the raw materials might be oil. Oil goes into so many products. It’s not just a means of moving things.

You might get oil moved from, say, the Gulf of Saudi Arabia or, the Middle East to a plastics factory in China. You might then get the raw plastic moved to a factory in China that makes physical widgets. And that’s what you think of as the beginning of your product’s journey, but it is not.

Then those products are going to be probably moved by truck to a port, be loaded via a crane, which is kind of a vehicle, only very swift, but a critical one, and indeed the human hand into a boat. Then, thence, it will be loaded into a container, of course, for it to be containerized. Maybe at the port probably, then the container will be swung onto a ship.

Then the ship will go from say Shenzhen or some East China port as a classic example to a port of LA in America as a classic example. This is obviously not the only option in the world for goods, but it’s one of the most well used and, and biggest ones. And then Thence it will be taken out of the the ship and the container will be shunted over to a container park somewhere and sometimes it’ll be left for a long time if it’s very busy.

It will be then de-consolidated, ie, your stuff will be taken out if it’s been mixed with other people’s stuff. If not mixed then maybe you just own the container yourself if you’re shipping enough. Thence it will be trucked to somewhere, it might be put on a railway and you’ll be taking it from there.

How your products move from vehicle to vehicle

So, literally thinking through how your products move from vehicle to vehicle, or from one thing that moves them to another thing that moves them is really, really worthwhile. Because if you look into it in detail, you may discover that things are being moved inefficiently or You’re moving things twice when they could be moved once.

When you might ADD a vehicle or step in your supply chain

And it could be as simple as, for example, if you inspect stuff when it arrives in the U. S. A., well, let me put it two or three ways. If you don’t inspect your goods when they’re coming out of China, you’re on drugs. I’m just saying that, okay? Because quality control is not a given in China in the way that it might be within the European Union, at least in Western Europe, or certainly in America.

So some things need steps that need adding to supply chains. And that’s the most classic one. That’s one example where you might want to add a step to your supply chain.

When you can remove a vehicle or a supply chain step

But you may wish to remove steps.

If you have, for example, been inspecting your goods on leaving China for a while, you may choose to trust your suppliers to do a good job and feel that you don’t need to inspect as much as you used to. You may feel that you don’t need to do a post-shipment inspection again.

If you haven’t done that, a lot of people don’t, they ship from China. and then they wonder why people are complaining about breakages. Well, guess what? It could be that things are breaking in transit from China to the USA, or from China to the UK, or from India to the UK, international freight. Or it could be that they’re breaking somewhere else.

But if you don’t inspect, you’re not going to know. So you may choose to, and I would advise you to do pre and post-shipment inspection before you ship for the first time, but you may choose to skip on the postal shipment inspection.

Once you have solved any problems you’ve got well-packed and padded cartons, you may have changed the packaging so that it protects the government, and the products more, particularly if it’s glass or something breakable, et cetera, et cetera.

And eventually, you’re going to get to the point where you can get rid of a part of the supply chain.

“The best part is no part”

Whatever you think of his public pronouncements on X or Twitter or his treatment of Twitter, you’ve got to admit that Elon Musk is one of the most amazing engineers.

And he says the best part is no part. Which makes sense. If it’s not there, it can’t break. It can’t be messed up. It isn’t going to cost money. It isn’t going to take time. So eliminating parts of the supply chain that are unnecessary, as long as they are unnecessary, can be one of the best ways to save money and time. Sometimes you might go the other way, but that’s one example, of vehicles literally.

Financial vehicles (wealth vehicles)

Now, if we’re thinking less literally and more metaphorically than the financial vehicle. are a classic thing in the investing world that people talk about as vehicles.

Saving money is like walking

So a wealth vehicle could be as simple as saving money, which is a very, very good start.

It’s a bit like walking. Walking is not a sophisticated ways of moving, but it’s a lot better than not moving anything, isn’t it?

So if you hand deliver your products if you had a, a sort of a bakery in a local village back in the day and you sold bread, for example, then that might be a very viable option.

Government bonds are like a bicycle -low tech but a step up

Obviously, after a while, you might find that’s very slow and laborious. So the next level up might be bicycle delivery, and you might find that the wealth equivalent of that might be investing in stocks and bonds. And it’s exponentially more complex than just saving. It requires more management and more keeping an eye, but people will often use bonds, particularly government-issued bonds as part of a pension portfolio.

Even the very grown up sophisticated pension funds will do that.

And, they’ll often have gilts, which are UK 10-year bonds and treasuries, which I believe are US Treasury bond treasuries, US 10-year bonds. I’m not an expert in stock or bond investments, so do not follow any advice from me directly on that, but you get the idea. In business, there are some equivalents as well. I mean, when you’re looking at small business, there isn’t any equivalent to the low risk and certainty of such investment vehicles that I just talked about, really.

Getting the train – Blue Chip stock investments

Investing in blue chips could be seen as like buying, or getting a train. So, it is more complex still. But plugging into a known public thing.

Stock picking – a fast car

And then you could say that investing in individual companies and individual stock picking starts to be literally the same thing, right?

So the skill of buying a business, investing in a business or investing in part of a business is a different skill from running one, but they’re very, very related. If you develop the skill of thinking like an investor and thinking of your business as a wealth vehicle rather than just being a cash flow thing that you live off each each month, hopefully if it’s working for you then that’s already a big step forward because the truth is, of course, that in the, in the world of small businesses particularly that the percentage of money that you will take from the business when you sell it, if you sell it is, is frightening.

Creating and selling your small business is a wealth vehicle

If you own a business for a handful of years, which a lot of people do in the e-commerce space at the moment that I work with anyway, and they’re doing the sort of seven to eight-figure range in revenue, then selling the business normally will make you about 60 per cent of all of the money you ever get out of the business.

And that assumes that it’s for cash flow and well, if you’re growing it aggressively, that is probably more skewed still.

Is your business a vehicle for generating cash?

So in other words, thinking of the business as a wealth vehicle in itself is critical,  but you can of course break the metaphor down and think of, right, is this the right vehicle for creating more cash flow?

For example, if you look at your products as little mini vehicles of wealth, is a particular set of products. a cash generator for you? It may not be growing that much. It may not, that section may not be highly profitable, but if it’s making cash it’s, particularly if you’re doing something like reselling existing products, if you’ve got wholesale buying relationships, or even if you’re doing good old retail arbitrage, then that could be a cash flow generator.

But you need to be clear if that’s just a vehicle for generating cash. That’s not the same vehicle as one that generates brand equity or something solid that you can be part of a business that’s sellable.

Private label businesses often produce value when they’re sold, not when running

For example, so creating a private-label product will not be cash-generating. Initially, it will take cash, but it could be a vehicle for growing the value of your business. You get the idea.

Choose your own vehicle metaphors

So just again, these are simple concepts that you can play with. And I’m just beginning to sort of tease you with how you can use this metaphor of a vehicle in your business. But it’s pretty profound.

The real questions: Where are you going? How are you planning to get there? 

You’re trying to go from A to B. First of all, as in Goldratt’s questions, you’ve got to define:  Where are you? Where do you want to go? And how are you going to get there? And that’s more like a sat nav question, if you will. And a vehicle question is, a subset of the how are we going to do that.

What vehicle is suitable for that? And whether it’s literally vehicles in your supply chain, moving physical widgets around the world. Not just getting it to the warehousing, but fulfilling it as well. The last mile problem often involves people literally cycling on bikes. Or whether it’s metaphorical and you’re talking about wealth vehicles and you think of each product line as a wealth vehicle or your business as a whole as a wealth vehicle.

Again, the question arises: Where are you now? Where do you want to go? And how are you going to get there? And which vehicle are you going to use? And how does that all fit together? Hope that’s thought-provoking. Thanks for listening. Speak to you soon.

 The 10K Collective Mastermind

I’m Michael Veazey from Amazing FBA and I’m the leader of the 10k Collective Mastermind- a Mastermind for private label sellers and product brand owners who sell at least half a million dollars a year or more on Amazon.

Over the last five years we’ve had members triple their revenue in one year, grow to eight figures and one member get to a seven-figure exit.

Now we’re taking it to the next level. I’m excited to introduce the 10K collective Uber mastermind. It’s a unique combination of peer group support in person and online and specialist coaching. We give you everything you need to grow your business to high seven figures, and finally start to get that lifestyle you were promised when you went into this.

You’ll get clear plans from world-class specialists on things like intellectual property law, e-commerce image and video marketing, financial engineering and paid advertising to name but a few. You’ll create bulletproof plans to survive the recession. You’ll double-check with your peers that they make sense and then you’ll make a plan to make a killing on the rebound.

Most importantly, you will actually transform your business.

You’ll create listings that convert, build a brand that connects and get premium pricing. You’ll learn the latest advertising hacks and master stock management, as well as avoiding Amazon curveballs. Above all, you will create a big, bold, three-year plan for a seven-figure exit. And unlike other programs, we don’t just hype you up and then abandon you.

You’ll have your peers in the mastermind, giving you insights from their own businesses and keeping you on track through peer accountability and a little bit of friendly competition. And we’ll also have those experts double-checking that everything you do makes actual sense.

If you finally want to start becoming the entrepreneur you’ve always known you could be, if you’re ready to take your business to seven figures and beyond, then go to TheAmazonmastermind.com. to find out more today.

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