Nov 8, 2017
Often times, when someone buys a
business they start spinning in many different directions, when the
best thing they could do is tap into the knowledge and advice of
the previous owner. The previous owner has lived that business day
in and day out. It’s important to follow their growth plan if they
have one. Ideally, every new owner wants to implement new growth
plans, but the best paths to growth are often those that are
Today, Joe is talking with Kent
Renner who is a client that bought an Amazon FBA business and
website through us. This is a customer success story. He’d never
say it, but Kent is actually that “the smartest guy” in the room,
regardless of the room. And he says the smartest thing he has done
to help the business grow is to implement the growth plans that the
previous owner suggested.
He added new SKUs and variations and followed the existing paths
to growth outlined in the Business Summary. Because of this and
Kent’s capital infusion to expand the total SKU count, the business
is on track to grow 300% in 2017. And he only
bought the business in March of 2017!
- Kent is an impressive guy who
made it to the top levels in his role at a publicly traded company,
working 50 to 70 hours a week.
- Now he works at home with his
Amazon business and his life has completely changed.
- He still works hard and smart,
but now he is building a sellable asset that is 100% his
- Kent started as a CPA and
auditor at PricewaterhouseCoopers and eventually ended up as Chief
Accounting Officer at XPO Logistics before taking the
- Kent wanted a business capable
of growing that he would enjoy working on. The more he looked at
this particular business the more he liked it.
- The business Kent bought was
well branded with excellent reviews and it had many clear paths to
- As part of the transition
process, they developed a SKU rollout plan.
- The way the seller and Joe
presented the business made it clear for buyers to see the paths to
- The importance of the clear
paths to growth was essential to his purchasing
- There were no access issues
between the seller, Kent, and Quiet Light during the selling
process, which instilled confidence.
- Kent and the Seller developed a
transition plan with key objectives and priorities, and then Kent
flew to Hong Kong and executed the transition processes and met
- Kent had fully documented
processes by the time he left Hong Kong and he would recommend that
for any buyer and seller.
- These things can be done in
advance, but they also need to be done during the transition
process to make sure that they are accurate.
- The important advice of not
changing a lot of things too quickly and not breaking the site was
critical and helped toward the path of 300% growth.
- Staying in compliance with
Amazon rules is always top of mind.
- Kent is working a lot while
learning the business. There are maintenance hours at about 24
hours a week, but Kent works longer to get new SKUs introduced and
meet his own goals and objectives.
- He has expanded into the rest
of Europe and sells in the UK and US.
- He is also looking into other
selling opportunities outside of Amazon.
- It’s Kent’s goal to have a
multi-channel business on other platforms and his own website,
knowing this brings more value.
- Driving traffic is more
expensive, but you get a higher return when you own the
- Kent expanded from 17 to 30
SKUs in the US and his revenue has tripled. It is his goal to get
to 5X in 3 years.
- The growth is based on the
process the seller setup plus Kent’s expansion process.
- Kent has some contractors and
uses great online communities as a resource, but he is running the
whole show without a staff.
- Getting comfortable with
patents, trademarks, and traveling to meet the seller, were all
part of his buying process.
- Attorneys are important, but
keep in mind that they work for you. Trust your instinct and your
relationship with the seller.
- Kent is pleased with the
business and the way the transition went. The seller wanted him to
succeed and Kent was impressed with his level of