Read Millionaire Fastlane
- Mar 8, 2016
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What I don't get is how he has all of these employees + a manager and still works 10-12 hours a day to make 90k a year?From what I've seen (and I've seen quite a few), some of those numbers are pretty out of whack.
Amazon fees at 30% of revenue are about average.
Payroll is too high. I have clients selling millions with 0-1 employee.
Rent is too high.
Professional fees is too high.
This guy has good revenue, but really needs to focus on optimizing expenses to have a successful business.
For anybody in touch with this guy: please warn him about his lack of insurances, this is legal hell waiting to happen with him and his business. If I knew him I would have already warned him.Yeah, several of the expenses look ridiculous. Is he renting retail space on the main strip?
Come to think of it though, there is one expense that is horribly low, and that's insurance. This guy is on the precipice of disaster. He has 10 employees, rents some apparently giant space, has 7mm in product sales (hopefully no choking hazards), and all of his insurance costs less than $700 per year? Bullshit! His workers comp should cost more than that if he's in the US. Plus he should have CGL, commercial property insurance, business interruption, and probably cyber liability, EPL, and I would argue for some others if it wouldn't bore everyone to tears.
I'm amazed he's made it 7 years doing things this way. If he doesn't have worker's comp, that exposes him to heavy fines and felony charges, on top of the unlimited liability for injuries to his employees. If he does have WC, then he probably doesn't have any other insurance, like product liability.
In his reddit post, he said he "doesn't plan to be sued this year." Oh boy.
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