Gift Rep Sandy

Posts Tagged ‘building an income’

Building a Livable Income.  As a rule of thumb, it takes 2 – 3 years to build and refine a customer base and vendor products lines needed to sustain a livable income.  Following is an outline of income potentials to expect in the early years:

•    The first 6 months to a year will be a major cash drain as you will be spending money on travel and tools to generate potential buyers and orders, but may not be receiving enough commission payments to meet those costs.

•    The second 6 months to a year will give you enough income to meet most of your business expenses.  If you have done well, you will break even somewhere during this time frame.

•    Sometime during your second year, you can expect to generate enough orders to pay your business expenses and make a ‘bare-bones’ living.

•    If you have worked consistenantly and persistently over the first two to two and a half years, you should be able to sustain a fairly good group of loyal buyers and producers to provide a sustainable income for your efforts.

One major advantage of sales repping over other start up businesses is the low start up and overhead costs associated with this type of business.  Whereas, most new businesses require a large cash investment for products, office and equipment, sales repping requires only a car, business card and your dedication to working the business!  But as with any start-up business, planning for the ups and downs of cash flow will make or break your business.