
Hi entrepreneurs,I've been running an ecommerce business out of my garage for 4 years now, and we've just got our annual financials processed. Looking at the figures, I don't know how to scale and where to go next. I feel like we're not making enough profit to grow and have plateaued our monthly revenue at $50-55k. Our products are mostly hobby electronics. Please don't ask me for the URL or shop name.Firstly, our financials:For the year ended 31 march 2021:Total revenue: $593,436Total expenses: $37,358 (mostly accounting fees, rent, and marketing)Total cost of sales: $449,985Net profit: $106,093As you can see above, we're averaging a 30% markup on products. I know this is low but our game is high turnover and our market is very competitive on pricing. Our customers know they can purchase our products directly from china cheaper but we beat them with overnight shipping and great customer service. I run the shop full time and have a part-time worker help with customer service. Our salaries currently come out of the $106k profit.Why is it hard to grow revenue? Our niche is pretty small and although it is growing, it is still quite unheard to most people. My country is small too and we've got a fairly large market share. Overseas markets are saturated and we won't be able to expand there.My goals for the business:Move into a commercial warehouse or retail space. Running the numbers, this will eat pretty much all the profit we're making. I estimate we will need 800-1000sqft of space, which costs about $30k in my area. Our garage is getting completely full of inventory and we're quickly running out of shelving space. All profits are reinvested into stock, so we're constantly holding more product each month.Grow to $100k MRR and hire more staff. I want to be more hands off with the daily running of the business and focus more on the supply side and business development rather than deal with customers. Our part-time staff is great for this but I ideally want to bring him on full-time when the finances allow.What would you do to scale? I'm sure there's information missed, so please ask. see hubwealthy.com/wealthy






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