EASY Way To Manage Cashflow With Shopify Dropshipping | Step By Step Guide

Published on: December 6 2022 by Shri Kanase

EASY Way To Manage Cashflow With Shopify Dropshipping | Step By Step Guide

EASY Way To Manage Cashflow With Shopify Dropshipping | Step By Step Guide

EASY Way To Manage Cashflow With Shopify Dropshipping | Step By Step Guide

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00:00:00	00:00:04	yo what is going on everybody shri
00:00:02	00:00:06	khanasi here so how to handle
00:00:04	00:00:08	money when it comes to shopify drop
00:00:06	00:00:11	shipping i personally believe
00:00:08	00:00:12	a lot of dropshippers make huge mistakes
00:00:11	00:00:14	when it comes to handling money with
00:00:12	00:00:15	shopify drop shipping
00:00:14	00:00:17	and then at the end of the month they
00:00:15	00:00:18	find themselves at a break-even position
00:00:17	00:00:20	or even
00:00:18	00:00:22	at a slight loss and worst thing of all
00:00:20	00:00:24	they don't even know how they ended up
00:00:22	00:00:25	in that situation i personally believe
00:00:24	00:00:27	that there are a few simple
00:00:25	00:00:29	steps that you can be taking every
00:00:27	00:00:30	single week or every single month so
00:00:29	00:00:32	that at the end of the month
00:00:30	00:00:34	whatever income that you actually earn
00:00:32	00:00:36	from your shopify drop shipping store
00:00:34	00:00:38	is actually given to you and within your
00:00:36	00:00:40	bank account by the end of the month and
00:00:38	00:00:42	to illustrate this in a very
00:00:40	00:00:43	easy way i'm going to be going over the
00:00:42	00:00:44	exact steps
00:00:43	00:00:46	i personally take when it comes to
00:00:44	00:00:48	actually handling money with my own
00:00:46	00:00:49	shopify dropshipping store so it is
00:00:48	00:00:51	extremely important for you
00:00:49	00:00:53	to watch this video until the end
00:00:51	00:00:53	especially if you run a shopify store
00:00:53	00:00:55	already
00:00:53	00:00:56	but without wasting any more time let's
00:00:55	00:00:58	just jump right into it so the first
00:00:56	00:00:58	thing you'll have to do in order to
00:00:58	00:01:01	start
00:00:58	00:01:03	handling your money the right way is to
00:01:01	00:01:05	just gently tap that like button down
00:01:03	00:01:06	below it'll take just two quick seconds
00:01:05	00:01:08	okay hopefully you've done that but
00:01:06	00:01:11	when it comes to handling money i've
00:01:08	00:01:12	gone ahead and created a very simple
00:01:11	00:01:14	chart graph to show you guys exactly
00:01:12	00:01:15	what i personally do with my money and
00:01:14	00:01:17	i'll be explaining
00:01:15	00:01:18	each step of the process so the first
00:01:17	00:01:21	thing at the very top
00:01:18	00:01:21	of my chart is initial investment now
00:01:21	00:01:23	this
00:01:21	00:01:25	initial investment is specifically
00:01:23	00:01:27	referring to any type of money you
00:01:25	00:01:28	initially put into your business
00:01:27	00:01:30	maybe it was from your savings account
00:01:28	00:01:32	or maybe you borrowed some money from a
00:01:30	00:01:34	friend or family member
00:01:32	00:01:35	just whatever you used from your own
00:01:34	00:01:36	bank account to start your drop shipping
00:01:35	00:01:38	store
00:01:36	00:01:40	and the money you use to pay for the
00:01:38	00:01:42	monthly expenses this is at the very
00:01:40	00:01:44	top and is usually the first expense
00:01:42	00:01:46	majority of the drop shippers
00:01:44	00:01:48	go through then following this arrow
00:01:46	00:01:49	right here that money goes into your
00:01:48	00:01:50	drop shipping store
00:01:49	00:01:52	where you can kind of use that money to
00:01:50	00:01:54	do a variety of things like buy
00:01:52	00:01:55	subscriptions for apps
00:01:54	00:01:57	choose a plan from the shopify trial
00:01:55	00:01:59	plan and also maybe even use it for
00:01:57	00:02:00	marketing and anything related to your
00:01:59	00:02:02	drop shipping store
00:02:00	00:02:03	once you start using that money for your
00:02:02	00:02:04	drop shipping store maybe you start
00:02:03	00:02:06	advertising
00:02:04	00:02:08	maybe you start doing any types of other
00:02:06	00:02:10	things to start getting traffic
00:02:08	00:02:11	that is when you start getting sales
00:02:10	00:02:13	from your customers now
00:02:11	00:02:15	keep in mind that these sales can lead
00:02:13	00:02:15	you to be profitable or in a loss at the
00:02:15	00:02:18	end
00:02:15	00:02:19	we're just trying to see exactly how the
00:02:18	00:02:20	money should flow within your business
00:02:19	00:02:22	let's say
00:02:20	00:02:23	after about four weeks of running your
00:02:22	00:02:25	shopify store you have
00:02:23	00:02:28	about a thousand dollars of profits from
00:02:25	00:02:30	your shopify store and 500
00:02:28	00:02:32	went to your paypal account because half
00:02:30	00:02:34	of your customers bought via paypal
00:02:32	00:02:36	and the other 500 went to your business
00:02:34	00:02:38	bank account this is what i normally
00:02:36	00:02:40	do as well when it comes to my own
00:02:38	00:02:42	shopify store i simply use both paypal
00:02:40	00:02:44	as well as my own personal bank account
00:02:42	00:02:46	to divide up the income that's coming in
00:02:44	00:02:48	the cbp in the middle
00:02:46	00:02:50	is basically referring to the cash back
00:02:48	00:02:52	programs that i use to get back cash
00:02:50	00:02:54	from all the orders i place
00:02:52	00:02:56	via aliexpress and these cashback
00:02:54	00:02:58	programs there's a ton of them out there
00:02:56	00:03:00	one specific cash back program that i
00:02:58	00:03:02	use is admitted and admitted gives me
00:03:00	00:03:04	around one percent to three percent cash
00:03:02	00:03:06	back on every order i place so whatever
00:03:04	00:03:07	money that i get via cash back
00:03:06	00:03:09	this also goes into my paypal account
00:03:07	00:03:10	which then goes into my business bank
00:03:09	00:03:12	account because
00:03:10	00:03:13	all of the money that i get inside my
00:03:12	00:03:15	business paypal account
00:03:13	00:03:16	i just immediately transferred to my
00:03:15	00:03:18	bank account so i have no
00:03:16	00:03:21	money within the paypal account at the
00:03:18	00:03:22	end once i have transferred all of the
00:03:21	00:03:24	money into my business bank account
00:03:22	00:03:26	this is where i then go on to the next
00:03:24	00:03:28	step and that is transferring that money
00:03:26	00:03:30	into my personal bank account
00:03:28	00:03:32	now my personal bank account is mine
00:03:30	00:03:32	only it is not related to the business
00:03:32	00:03:34	at all
00:03:32	00:03:36	which means i can spend that money
00:03:34	00:03:38	however i like and what i'm basically
00:03:36	00:03:38	doing here is i'm basically paying
00:03:38	00:03:41	myself
00:03:38	00:03:43	with whatever money that i just got from
00:03:41	00:03:44	my business bank account so at the end
00:03:43	00:03:45	of the month whatever profits that i
00:03:44	00:03:47	have left
00:03:45	00:03:49	after i've paid all of the expenses from
00:03:47	00:03:51	virtual assistants for
00:03:49	00:03:53	the shopify apps marketing etc
00:03:51	00:03:54	whatever's left over i just transferred
00:03:53	00:03:55	to my personal bank account because
00:03:54	00:03:57	again
00:03:55	00:03:58	this is going to be the profit that i
00:03:57	00:04:00	earned from my shopify store
00:03:58	00:04:02	within that time period once i have
00:04:00	00:04:03	transferred that money into my personal
00:04:02	00:04:05	bank account
00:04:03	00:04:06	this is where the cycle kind of restarts
00:04:05	00:04:09	because now we're at the end
00:04:06	00:04:10	this means i can put this money back at
00:04:09	00:04:12	the very top
00:04:10	00:04:14	to my initial investment what this means
00:04:12	00:04:16	is that whatever profits i just
00:04:14	00:04:17	earned with my shopify store i'm readily
00:04:16	00:04:19	just investing that
00:04:17	00:04:21	back into my drop shipping store so that
00:04:19	00:04:22	i can maybe advertise a little bit more
00:04:21	00:04:24	maybe i can hire more people
00:04:22	00:04:26	maybe i can do more things within the
00:04:24	00:04:27	business which will help me grow and
00:04:26	00:04:29	this is literally one of the best ways
00:04:27	00:04:31	that you can be continuously growing
00:04:29	00:04:33	your shopify stores i personally don't
00:04:31	00:04:34	pay myself too much money when it comes
00:04:33	00:04:36	to the end of the month where i have to
00:04:34	00:04:37	kind of transfer some money to my
00:04:36	00:04:39	personal bank account but
00:04:37	00:04:40	i do end up transferring a majority of
00:04:39	00:04:42	the profits into my personal bank
00:04:40	00:04:45	account just so i am aware
00:04:42	00:04:46	exactly what the profit number was and
00:04:45	00:04:47	how much i earned
00:04:46	00:04:49	during that time period but you can of
00:04:47	00:04:51	course go much more in detail
00:04:49	00:04:52	when it comes to handling your money
00:04:51	00:04:54	maybe you have various different bank
00:04:52	00:04:54	accounts maybe of various different
00:04:54	00:04:56	stores
00:04:54	00:04:57	what you want to be doing is for every
00:04:56	00:04:59	new store that you have
00:04:57	00:05:00	you want to have a different paypal
00:04:59	00:05:02	account and you want to have a different
00:05:00	00:05:03	business bank account
00:05:02	00:05:05	for those stores because you don't want
00:05:03	00:05:07	to be mixing up whatever income is
00:05:05	00:05:07	coming from one store with another store
00:05:07	00:05:09	and
00:05:07	00:05:11	the same goes for the paypal accounts
00:05:09	00:05:13	when it comes to paying yourself from
00:05:11	00:05:14	your stores you want to again then
00:05:13	00:05:16	instead of having it inside multiple
00:05:14	00:05:18	different bank accounts you would rather
00:05:16	00:05:20	send all of that money into one major
00:05:18	00:05:22	bank account which is for your business
00:05:20	00:05:24	and then transfer only the profits to
00:05:22	00:05:25	put inside your personal bank
00:05:24	00:05:27	account and then again you can repeat
00:05:25	00:05:28	the cycle by pushing the money
00:05:27	00:05:30	all the way to the top again but this
00:05:28	00:05:31	was just a quick video on how i
00:05:30	00:05:33	personally handle money when it comes to
00:05:31	00:05:34	shopify drop shipping
00:05:33	00:05:36	nothing too crazy but this definitely
00:05:34	00:05:38	helps me stay on track when it comes to
00:05:36	00:05:40	my expenses at the end of the month
00:05:38	00:05:42	if you found any type of value in this
00:05:40	00:05:43	video smash that like button and smash
00:05:42	00:05:46	that subscribe button and i'll see you
00:05:43	00:05:46	guys next time