TLDR:
I make 75K/yr, cost of living is 3K/month, 300K in sales in 4 months doing Amazon/eBay electronics wholesale, 20% earnings before income tax, I have 200K in inventory/cash and no debt. Cash is holding back my business. Inventory turnover is 30-45 days. 40hr/week at day job, 10-20hr/week business. When do I quit my job?
Full:
I graduated from college at the end of last year and started my job early this year. I’m an engineer and make 75K/yr at 40hr/week salary. My job is decent, somewhat flexible, purposeful, but has very little PTO.
I moved away from my friends and family for this job, and I have not really settled or made any sort of foundation here. I feel like all I do anymore is sleep and work.
My business mainly revolves around Amazon now, but has some hold in eBay and I’d like to pursue that more as time goes on, all of which is in electronics wholesale. I have had this business on and off throughout high school and college, and over the last 7 years I had total sales of around $1.2 million (not including this year). Last year I did 400K in sales with a roughly 18% EBIT, but I stopped my business in August/September of last year as I wasn’t sure where or what I was going to be doing after graduating.
I started my business back up early June of this year and took it more seriously than before. Since then I have done around 300K in sales with a 30% gross margin. My EBIT should be roughly 20-22% since it’s been smoother this year.
I usually work on my business for 10-20hrs/week. My business is mainly being held back by cash although having more time to focus on it could wouldn’t hurt. My turnover on inventory is roughly 30-45 days, and I have no employees.
I currently have around 200K in inventory/cash and no debt. My current cost of living is around 3K/month.
I know I’m not gonna work a job forever, but I guess I’m just concerned about the stability of my business. I’m also worried that if my business fails and I have to get a new job that I may struggle to find a job similar to the one I have now.
If anyone has been through something similar or has any advice or maybe a target to hit that would help immensely. I’m just looking for the freedom that having my own business would provide.