Want To Find Out How to Start A High Ticket Drop Shipping Business?
High ticket drop shipping is a type of business popular for those who work out of the home and are tight on money. Instead of stocking their products, they rely on a network of suppliers to stock and ship the products to those who order them. It is a great way to build a sustainable business for people who want to break free of the 9-5, work from home, pay off debt, spend more time with family, and travel more, but there are certain steps to take before getting involved.
Investing Your Money
first, before we get started, I thought I'd give you a little pep talk before you start your journey into high ticket drop shipping.
High ticket drop shipping is not a straightforward venture and requires time, patience, and some money to invest in order to get started. There must be a long-term plan in place for getting the business up and running.
Committing yourself to accomplish baby steps at first rather than accomplishing a huge amount of results in the short term will help keep you motivated because it takes longer to launch high-ticket drop shipping stores than Aliexpress drop shipping stores.
Expert tip: Read the dip by Seth Godin and you'll see why you're more likely to get burnt out if you don't pace yourself.
Be realistic with expectations and profits so you won’t give up easily. Besides beginning with lowered expectations, you need to invest time and money to understand the foundations of business and marketing. I highly recommend taking some free and premium courses on Udemy related to marketing, business, sales, advertising, email marketing, and social media marketing.
Here's a list of my favorite Udemy courses for entrepreneurs.
To begin, the money investment should be a fair amount, not massive. For newcomers, they will learn how Dropshipping works inside and out, which will be important for managing reasons as the business grows. Newcomers will learn who are their clients and what is the market so the decisions can be made with ease. New ideas will develop that will provide major success and growth without a lot of money being spent. Drop shipping is not a job that can be your main source of income right away. It only works as really a side hustle at first. It can become full-time after a few months as the business creates enough revenue every month to live on if you take action and do everything you can to grow your business on a daily basis.
The amount of investment you should prepare for is roughly $1,000 - $2,000 a month working 10 to 15 hours a week.
Investing Your Time
When it comes to going full-time, people have to focus everything on marketing to create momentum and brand awareness. The estimate of a full-time success after marketing is between 3 to 6 months or more depending on how much time and money you invest. Once the Dropshipping business is in full swing, the maintenance won’t take as much time as other jobs since it is strictly digital and the investment in efficiency and scalability is effective in Dropshipping.
Legal Business Structures
In the beginning, be fully invested in the business and focus on growth. To make the business official, you'll need to set it up as a legitimate operation through a legitimate business structure.
First, you can list your drop shipping business as being a sole proprietorship. It is simple but does not have protection from personal liability. In other words, if the business is sued, personal assets are also in jeopardy of being seized in the event of a lost lawsuit. But filing is minimal all business earnings can be listed in personal taxes, which means no state or federal business filings are needed.
LLC (Limited Liability Company)
Then, there is the Limited Liability Company (LLC) which gives increased insurance of personal assets by establishing the business as a legally separate part of personal ownership. This is the easiest way to start a limited-liability corporation but you will have compliance complications with more filing and fees for incorporation and maintenance yearly. An LLC can be taxed as a sole proprietorship, S-corp, or a C-corp.
*NOTE: This is not legal advice and should not be taken as such. Please consult your CPA for advice about your specific situation.
I use and recommend INC File to create your LLC.
EIN (Employer Identification Number)
Note that the IRS states that all businesses must have an employer identification number (EIN), which is basically a business's Social Security number. It is used to file taxes, apply for accounts with suppliers, and other business-related ventures. This is free to apply for. Click here to file your EIN.
Separating Personal and Business Accounts
A mistake new businessmen do is mixing their personal and business accounts, causing problems when it comes to taxation and proper accounting, which the IRS would see a problematic and gives reason to audit. Business and personal accounts must be separate at all times. All business finances should work through one main checking account and all revenue should be deposited and withdrawn from it. The same goes for the use of PayPal, which can be used as another credit card or checking account to pay for expenses and inventory. Be sure to get a business checking account and a business credit card, or multiple business credit cards. Check out our resources page for the best accounts and cards to sign up for.
You'll need a seller's permit to get an account with suppliers. Look up your state's secretary of state website to register your business and learn how frequent the amount of tax collected has to be paid. Some states also require that all businesses must get a license that must be renewed regularly, but some don't. This may or may not exclude dropshipping businesses because they work from home. Check with your secretary of state website for more information.
Dropshipping is a little bit complexion the surface, but digging through the details, and it can be a fairly easy way to make a today profit in the long run. Drop shipping is quite common with many stores because it saves some money and headaches with the actual goods. It is an idea that is handled all over the world and full of benefits that people follow. Small to midsize companies engage in business this way. It is popular to do and can be very profitable if done properly.