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Keep Records Of Your Ebay Business: Part 1
By Scott Dowding
>> Featured Article <<
Copyright 2006 by Jason James
http://tinyurl.com/qbxp9
Are you ready to take your business to that next level as a rich seller? Would you like to quit your day job to become an seller full time? Can you imagine the freedom you will have from working as an seller from anywhere you please? Want to know the secret?
Good... Now that I have your attention I want to be honest with you. Today's article does not really have any well kept "secrets" or magic wands with bells and whistles that will make you a rich seller overnight. Instead, we are going to discuss the importance of keeping a proper paperwork train moving along so that your business can stay strong and thrive based around good record-keeping.
I realize that this topic is a dry one but trust me, keeping good records of your seller business can make or break you in the long run. As boring as it is, the advice you are about to be given is rock solid for anyone like you who wants to become wealthy as an seller. It only takes one time to get audited by the IRS before everything can come crashing down on you and your business as an seller. In addition to the tax law, without proper paperwork tracking, your business has no direction and will ultimately fail.
3 Reasons why it is essential to keep good records:
1. Without keeping records of everything pertaining to being an seller and the sales you have made then how else will you be able to gouge your progress? A detailed paperwork trail will show you how well or how poorly your business is doing. If becoming an seller full time is your goal, then keeping good records is key.
2. Second, the tax law requires you to keep records of your business. Unfortunately the law is the law and there is no choice in the matter, even if you are just a small-time seller trying to make it big.
3. You may need a business loan or other type of loan from a financial institution someday. Many power sellers jump-started their business by obtaining a loan from the bank and you can too, provided you have kept good records as an seller. Most loan applications require a ton of paperwork and all of the details and history of your business.
Tracking your business is not just for the IRS:
If I were to ask you today how your business is doing as an seller, what would your answer be and what would determine that opinion? It's not enough just to say that you are doing good in your business. Instead, your answer should be calculated from your paperwork records, by tracking specific items.
In other words,
keeping detailed records of your seller business is not only for the purpose of the IRS but also to help you create a profitable business plan based on actual facts. For example, do you know which ads are pulling in the most sales? Do you have the history of testing and tracking on the ads that are not pulling in sales? Are your profit margins high enough to cover your business expenses? What percentage is profit?
It would obviously be impossible to accurately answer these questions unless you were the kind of seller that kept good business records. And if you have not started documenting and saving copies of everything pertaining to your business, then it is never too late to start! With a little commitment and self discipline, you can get into the habit of keeping the books up to date immediately.
Taking that first step:
Getting started with keeping the books up to date with your seller business is kind of like doing that big chore that you have been putting off for a long time. You know you can do it, you know it needs to be done, but getting started just seems like a mountain to climb.
Well let's break that mountain into a molehill today and get started with explaining to you about profits margins and gross profit margins.
1. What is Gross Profit? Gross profit is your starting point in order to determine profitability from being an seller. You simply subtract the total cost of your inventory that you have sold from the total revenue that you earned for the sales.
2. What is a Gross Profit Margin? A gross profit margin is a determination of how profitable you are as an seller. You will know this information by dividing your gross profit by your total revenues. The higher the percentage is, the better off you are as a profitable seller. Free Article brought to YOU by ArticlesOn.com, where you'll find Articles On Everything! Visit http://articleson.com to get more free content. Jason James is a 10 year Internet marketing veteran and an Seller of 4 years. His website "The Auction Resource Network" reveals his inside secrets, tips, and sources that help him pocket over $10,000 per month on eBay. His proven step-by-step system shows even users with little or no business experience how they too can make huge profits selling products at online auctions. Claim Your Free eBook: "Top 10 Secrets for Successful Selling" below:tinyurl.com/qbxp9
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