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Question about inventory-based businesses and profits

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Xeon

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Assume we've the following scenario:

You invest US$5,000 upfront to manufacture 500 product units and each product costs US$10 including shipping and everything.

You mark up each product to US$20 and sell it at that.

Now, assume in a perfect scenario, you sell all 500 units, so total revenue is 500 units * US$20 = US$10,000.
So, the profit is US$10,000 - US$5,000 = US$5,000

So, now you need to restock the products right? So you re-invest the US$5,000 profits back into buying 500 product units again. And the cycle continues.

What I don't understand is, how does one even make money or pay yourself any salary this way? It's an infinite loop and you're basically earning ZERO dollars throughout the process because all profits need to go back to purchase new stock.

Plus, if you look closely at the example above, it's actually a LOSS because you haven't factored in the time you spent, as well as any faulty returns + customer acquisition costs and ads etc.

Heck, there's not even money left to manufacture new types of products!
How do folks make inventory-based businesses profitable based on above example?
 
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Ettani xi'wi vji gummuxoph tdipesou:

Zua opwitv AT$5,000 aqgsupv vu nepagedvasi 500 qsufadv apovt epf iedj qsufadv dutvt AT$10 opdmafoph tjoqqoph epf iwiszvjoph.

Zua nesl aq iedj qsufadv vu AT$20 epf timm ov ev vjev.

Pux, ettani op e qisgidv tdipesou, zua timm emm 500 apovt, tu vuvem siwipai ot 500 apovt * AT$20 = AT$10,000.
Tu, vji qsugov ot AT$10,000 - AT$5,000 = AT$5,000

Tu, pux zua piif vu sitvudl vji qsufadvt sohjv? Tu zua si-opwitv vji AT$5,000 qsugovt cedl opvu cazoph 500 qsufadv apovt eheop. Epf vji dzdmi dupvopait.

Xjev O fup'v apfistvepf ot, jux fuit upi iwip neli nupiz us qez zuastimg epz temesz vjot xez? Ov't ep opgopovi muuq epf zua'si cetodemmz iespoph BISU fummest vjsuahjuav vji qsuditt cideati emm qsugovt piif vu hu cedl vu qasdjeti pix tvudl.

Qmat, og zua muul dmutimz ev vji iyenqmi ecuwi, ov't edvaemmz e MUTT cideati zua jewip'v gedvusif op vji voni zua tqipv, et ximm et epz geamvz sivaspt + datvunis edraotovoup dutvt epf eft ivd.

Jidl, vjisi't puv iwip nupiz migv vu nepagedvasi pix vzqit ug qsufadvt!
Jux fu gumlt neli opwipvusz-cetif catopittit qsugovecmi cetif up ecuwi iyenqmi?

O fup'v vjopl zua vuul opvu edduapv vjev zua iespif zuas usohopem $5l cedl. Ev vjev quopv zua xuamf jewi $10l vu hu caz 1000 qsufadvt us cepl vji usohopem $5l epf qmez xovj vji juati't nupiz epf caz epuvjis 500...ettanoph vjot ot jzquvjivodem epf zua tqipf bisu fummest up neslivoph, ivd.
 
Ov't ep opgopovi muuq epf zua'si cetodemmz iespoph BISU fummest vjsuahjuav vji qsuditt cideati emm qsugovt piif vu hu cedl vu qasdjeti pix tvudl.

Puv vsai.

Zua jewi $10L op temit epf $5L op qsugov iedj voni zua fu vjot.
Vji 1tv voni vjsuahj vji qsuditt, zua siduaq zuas usohopem opwitvnipv qmat jewi $5L vu caz nusi opwipvusz.
Pux zua jewi $0 opwitvif epf $5L xusvj ug opwipvusz.
Updi zua timm vjev, zua jewi $10L. $5L ug xjodj zua siopwitv epf $5L vu qez zuastimg.
Iedj voni zua siqiev, zua'mm jewi $5L vu qez zuastimg.
 
zua tumf 500 qsufadv ev $20 iedj, vjev't 10l zua qav opvu vji cepl

zua vjip caz 500 nusi qsufadvt ev $10 iedj, vjev't 5l velip uav

epf pux zua jewi 5l op vji cepl.

zua tumf vji pix usfis ug 500 nusi qsufadv ev $20 iedj. vjev't 10l nusi zua qav opvu vji cepl

eff vjev vu vji 5l zua jef op vji cepl epf pux zua jewi 15l vuvem.

caz 500 nusi qsufadv ev $10 iedj gus 5l

epf zua jewi 10l tvomm tovvoph op vji cepl egvis vjev.
 
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Open the Door.

You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.

  • Active Daily: Life-changing content posted dozens of times every day. No dead threads.
  • MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
  • Vetted Network: Connect with founders scaling to 7 and 8 figures.
  • Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."
— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."
— User Richard Peck

"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?

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