Ecommerce Exits Podcast | Inside look at Building, Buying, Selling and Scaling Ecommerce Businesses

Ty Crandrall, CEO of CreditSuite.com discusses the various credit and financing options available for ecommerce business owners in this time of crisis.

WHAT YOU’LL LEARN

• Who is Ty Crandrall?
• Parallels of the 2008 Mortgage Crisis with the Current Covid-19 Crisis
• New Credit Opportunities available in the Current Crisis
• The importance of the 3 C’s in Financing: Cash Flow, Credit and Collateral
• How to Establish Business Legitimacy
• Tips in Building Business Credit

KEY POINTS

1. The crisis now offers financing for small businesses which were not available during the 2008 crisis.
2. New plans financing up to $2 million made available by the US Government offers loans at rates as low as 3.25% with long term payment plans (ie. 30 years) to help buoy the small business in these times. One can also secure a loan to ensure that employees are continued to be paid during business closures. The guidelines for these are being finalized.
3. Alternative lenders may provide loans just on the strength of one of the 3 C’s.
4. Establish the business credit and not just the personal credit. Entrepreneurs need to show that the business is able to stand on its own in order to secure the credit it wants.
5. Account receivables may serve as collateral in securing financing.
6. Data congruence across all agencies is important in order to establish business legitimacy.
7. For guidance on financing or steps to get funding started, visit the Credit Suite website. You may also contact  877-600-2487 directly for inquiries.

MENTIONED IN TODAY'S EPISODE:

• https://www.usa.gov/disaster-financial-help
• creditsuite.com/ein - to learn the steps of building your business credit
• creditsuite.com/monitoring

Co-founder of Ignite Brands and leader of Titan Networks, Lyden Smithers, shares strategies to improve cash flow during a crisis situation.

WHAT YOU'LL LEARN

• About Lynden Smithers and Ignite Brands
• Current State of Amazon
• Protecting your Cash Flow
• The 30-10-25% Rule and other KPIs
• Quick Wins in taking over New Brands
• Dealing with Suppliers
• Ensuring Delivery in time of Crisis
• Tip for Exiting FBAs

KEY POINTS

1. The coronavirus crisis situation has affected different products differently. Knowing your product and positioning it based on new reality may help prevent business slow down.
2. Use the time at home productively by reviewing how current products are positioned and presented in Amazon and the keywords being used and how to increase “click-ability” and sales conversion.
3. Make sure to include in the business analysis the total cost spent in advertising/total sales to determine the value added by PPCs.
4. This is also the time to negotiate better terms with suppliers as they are also interested in maintaining the business. Knowing your numbers is very important in the negotiation with suppliers.
5. Consider contacting warehouses to see if they can still accommodate shipping your products.
6. Maintaining a continuous growth is crucial in showing good numbers when exiting. Focusing the business on areas that make substantial contribution to the bottom line, makes sure that your cash is not tied up on useless endeavors.

Stephen Speer, CEO and founder of E-Commerce Lending.com, the only lending company for e-Commerce, walks us through how they can help people get financing for either selling or buying an e-commerce business

WHAT YOU'LL LEARN

• Introduction to E-Commerce Lending.com
• Seller Qualifications to secure Financing
• Importance of Tax Returns and Risks of Fund Co-mingling
• Determining Factors and Terms for Loan Financing
• Effect of the Coronavirus to the Industry

KEY POINTS

1. Books are reviewed and cleaned up, removing the co-mingling of funds of various businesses and the inclusion or personal expenses in the financials. All this will affect business valuation and ultimately the ability of the business to secure the financing.
2. Aside from the company financial statements, the tax returns are also reviewed.
3. There is a need to show that the business generates enough cash flow to cover debt repayment.
4. An e-commerce intending to sell would only to have operated for two years in order to qualify for financing.
5. Matching the right buyer to the interested seller has been crucial in ensuring successful debt re-payment.
6. The coronavirus has affected some lenders to pause releasing funds; nevertheless, the selling market is still very much active.
   

Virtual CFO Ben McAdam shares the importance of getting to know the fundamental roles of your accounting team and the nitty gritty of forming and selling your company. As well as his role in coaching businesses by focusing on the numbers and helping you grow them.

WHAT YOU’LL LEARN

• Role of financial tasks in Growing an FBA
  
• Introducing the Virtual CFO/Profit Coach
  
• Tips in maximizing Profit
  

KEY POINTS

1. The various financial tasks in a business (bookkeeping, accounting, CFO) is crucial in providing a clear picture on the condition and growth capacity of any company. Financial reports are important in informing on the strategies that a company may undertake to ensure a successful and profitable undertaking.
   
2. It is important to have a change of mindset on how one views taxes and hiring. Attitudes of wanting to pay the lowest tax possible as well as not delegating jobs that the owners are doing may hamper the potential growth of the company.
   
3. The Virtual CFO not only provides an objective eye in reviewing the financial and operational standing of a company but more importantly provides cash flow projections. This will enable owners to make informed decisions on which expenses the company would be able to bear in the long run.
   
4. To ensure the success of a business and adequate capital to respond to changes, there should be a good gross profit margin. This is often neglected when pricing a product and have led to the failure of businesses.
   

ABOUT

Before becoming a Virtual CFO or Profit Coach, Brian worked as a bookkeeper and an accountant. This has prepared him in identifying the crucial areas of a company’s financial performance that are often neglected.

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Thomas Smale, founder of FE International, one the largest e-business brokerages, provides insights on his dealings with e-Commerce merging and acquisition markets.

WHAT YOU'LL LEARN

• Background on FE International
• Understanding the Mergers and Acquisition market for FBA businesses
• Dealing with buyers
• Process of Selling an E-business
• Effect on Coronavirus on the market
• Tips for FBA’s

KEY POINTS

1. There is not much difference in the process of selling and buying a bigger or smaller e-business. However, bigger businesses take longer due to its complexity.
2. A seller must be willing to work with its broker in order to get the true valuation for his company.
3. Securing the terms of payment from the buyer is very important; most often, the consideration for the inventory is neglected. Likewise, it is also important to look into the transition period that is workable for both parties.
4. The Coronavirus pandemic has made a lot of parties nervous. However, the market is still there as the importance of going remote is highlighted.
5. It is important for sellers to think of his exit plan even if he has no interest in exiting. This will help guide him in making decisions for the company.
   

Giorgio Piccoli, founder of American Flats and M-Flat Logistics speaks about the rigors and pitfalls a growing e-commerce business face and the discipline needed in order to successfully traverse this landscape.

WHAT YOU’LL LEARN,

• Ensuring business cash flow for success
• Experience in Credit Lines
• Exploring Payment Terms with Suppliers
• Business Expansion and Growth: What does it entail?
• Effects of the Corona Virus and Preparing for future disruptions
• Tips for Exiting FBA’s

KEY POINTS

1. It is important for a starting up e-commerce business to try different distribution platforms in order to reach the target customer. Match the product to the right e-distribution platform.
2. Diversifying the revenue streams is important in maintaining a good cash flow for the business. Using the earnings of one business to support the operations of another start-up would help establish the second business.
3. It is important for e-businesses to re-invest their money back into the business to make it sustainable. It is always better to ramp up the business slowly.
4. As the e-business grows, it is advisable to look for smaller suppliers where your business would provide the major transaction. In this way, it would be easier for you to negotiate terms of payments.
5. Look for new business opportunities in current operations to further provide additional revenue streams.
6. While it is understandable that at the start, you would be on top of the business operations. As you grow, you need to be able to hire professionals to handle your business so that you can concentrate on other things. Take a two week vacation with no cell phones; if the business survives in the two weeks, then you are ready to go into the other important endeavors.
   

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on Apple Podcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Kenji ROI Founder, Danny Carlson shares his expertise in Amazon listings and optimization and goes in-depth on strategies to execute to increase conversions and make more money for your business. He introduces the Triple Optimized Amazon Listing Methodology and what makes it the most efficient and effective way to get customers buying.

WHAT YOU’LL LEARN

• Introducing Kenji ROI
• Triple Optimize Amazon Listing
• Other Tactical tips for FBA’s
• Other Tips for FBAs

KEY POINTS

1. Kenji ROI is a 3 and a half years old company that helps FBAs in their Amazon listing, creation and optimization. It has worked with 1,200 listings raising conversion between 25 to 75% increasing sales and value for the companies.
2. The triple optimize Amazon listing is a method developed by Kenji ROI that optimizes the on-line presence of the FBA’s raising its “click-ability”, and thus raising it ranking among Amazon listings.
3. One of the common mistakes made by FBA’s is having too many keywords that mess with the Amazon algorithm. Likewise, putting so many texts in the product descriptions that drowns out the competitive feature of the product as opposed to the other products available. It is important to focus on key differentiation and clear key words that attract customers. Description should be relevant and not voluminous.
4. Videos are becoming more important; however, it is best to engage a professional rather than upload a poor video.
5. It is better to look into setting up e-follow-ups for customers rather than considering setting up a separate store. Setting up an e-store is like setting up a business and entrepreneurs are advised to just concentrate on growing one. 

ABOUT

Danny Carlson is a 27 year old entrepreneur, podcaster, & lifestyle architect. He started his first business producing extreme downhill longboarding videos in 2014 & has since grown the Amazon FBA Agency “Kenji ROI” to more than 10 team members. 

Tax attorney and CPA, Aran Quinn, shares with us everything FBA and eCommerce sellers need to know about tax compliance, rules and regulations to note, and the breakdown of responsibilities of your accounting team. As well as tips and suggestions for a seamless and profitable exit.

WHAT YOU’LL LEARN

• Role of a Tax Accountant
• Tax compliance for FBA’s
• Key financial points to consider when exiting
• Common mistakes in Tax Planning

KEY POINTS

1. The Tax Accountant comes in whenever there are tax problems that need to be resolved. The tax accountant’s concern is ensuring the cash flow is preserved while taxes are paid. The position is especially needed by a booming business.
2. Taxes of FBA are dependent on its jurisdictional presence or where the FBA is physically located. However, it is important to be aware of other taxes that may be levied which transcends physical presence.
3. It is important to get finances in order for eventual exiting. Preferably, get the services of a professional who will work on the records 90 days before the transaction for exiting takes place.
4. One of the biggest mistakes of entrepreneurs is taking track of their investments; this would have an impact on the final tax they need to pay upon selling the business.

ABOUT

Aran is a CPA and lawyer specializing in accounting and tax/ Worked for big firms for a couple of years but now focusing on e-commerce planning.

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

Rob te Braake, Able Finance CFO, joins us to discuss finance strategies for FBA and eCommerce sellers, preparing contingency plans and tops for long-term digital business success and increasing cashflow. Rob also shares his predicted outcomes of the CoronaVirus pandemic for eCommerce owners and advice on curbing the worst of it.

WHAT YOU’LL LEARN

• The role of the CFO
• Common mistakes of FBA and e-com sellers in finance
• Importance of the cash flow
• Changes brought about by the Coronavirus
• Increasing profitability

KEY POINTS

1. Looking and the past financial performance of the company, the CFO makes the financial forecasts that provide input on the company’s future strategies. 
2. Entrepreneurs need to balance their natural optimism with negative possibilities and be prepared to deal with it.
3. There is a need to also draw attention to the cashflow as most businesses become bankrupt not from loss but from running out of cash. There is a need to understand and manage the flow of money ensuring that the company is liquid and is able to respond to payables and emergencies.
4. Cash flow forecasting goes hand in hand with sales forecasting.
5. Current coronavirus situation will definitely change consumer behavior and may lead to recession. In this time, it is important to focus on preserving cash and not profit.
6. Understand the different financing options, especially drawbacks from each.
7. An exiting business would need to concentrate on profitability and good records meaningful to the buyer.

ABOUT

Rob is Dutch by origin and has been in Asia for more than a decade. He provides finance strategy consulting like setting up KPI’s and planning the cash flow. 

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Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.

FBA Seller Gary Huang, Founder of 80/20 Sourcing and 7-Figure Seller Summit gives us a high-level view of the situation in China manufacturing and the proactive steps sellers can do to improve the supply concerns amidst the CoronaVirus pandemic. He shares tips in negotiating the cost of goods and giving a platform for successful sellers to share their strategies.

WHAT YOU’LL LEARN

• Update on the Coronavirus effect on China
• New ways of doing business in the Coronavirus environment
• General Tips for Sellers

KEY POINTS

1. In spite of the Chinese government’s lifting of the lockdown, it would be a long time for sellers to become fully operational due to a number of factors. Currently. Chinese sellers are operating between 30-50% production capacity only.
2. The coronavirus experience will also be imposing several changes in how manufacturers are currently operating. This includes allowing for longer lead time for suppliers to complete orders. It is important to do due diligence in speaking to suppliers to get a clearer picture of production timelines. Likewise, stocking up on raw supplies may become a norm since being out of stock is what hurt businesses practicing e-commerce the most. 
3. It is important that one maintains a relationship with their suppliers so that their company becomes top of mind with these suppliers. Go beyond just the relationship that business provides.
4. It is important for sellers to look for ways to negotiate prices by taking into consideration forex exchanges as well as how to deal with tariff expenses.

ABOUT

Gary was born and raised in the US. He is a second-generation Chinese who served as a Director of the sourcing department in China. He currently lives in Japan with his family.

🎧🎧🎧

Thanks so much for joining us this week. Want to subscribe to the Ecom Exits Podcast with Nate Ginsburg? Have some feedback you’d like to share? Connect with us on ApplePodcasts and leave us an honest review! Your feedback will not only help us improve the show, but it will help us connect with more high flyers like you.