Originally published on July 23, 2019, updated January 23, 2020
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It’s midday on July 15th, 2019: Amazon Prime Day. I’ve checked the forums and see people are reporting 2.5x sales above their average day. If your results are similar, your next payout will get a nice bump. Do you have plans for the extra cash? Make plans now for how you will handle this cash, so you can get the most mileage out of your money.
In keeping with the Profit First methodology, if you leave the funds in your checking account, Parkinson’s Law will take effect and in no time at all the Prime Day money will be spent and you will have very little to show for it. Remember that Parkinson’s Law says, “You use what you got.”
Profit First has shown us that we can overcome this issue by moving our money into bank accounts for specific purposes. For example, when we separate inventory spending from operating expenses in two separate bank accounts, we can easily learn how to protect those inventory funds that accumulate because our spending rhythm is different. When all our money sits in one checking account, it’s hard to separate what will be needed down the road for inventory. We begin to believe we have more money at our disposal than is the case and we then overspend.
Here are some suggested strategies to protect your money and ensure it goes to its best use.
The main takeaway here is to be intentional with those funds or they will be gone as quickly as they came in, and your big plans will evaporate along with them.
To learn more about Profit First, check out my book Profit First for Ecommerce Sellers where I provide many strategies like this to help you hold onto your profit.
Originally published on July 23, 2019, updated January 23, 2020
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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