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How to Start an Amazon Business with Little Money in 2021

February 16, 2021


In this article, you'll find out how to start a successful FBA business in the twenty-second century with the lowest viable amount of money. 

The best part:

I keep it real. 

I know you're not here for theory.

or idealistic jibber jabber

or to listen to some guru sound off. 

And I really should point something out:

According to, most businesses in general fail because of under-capitalization (not enough money/income)

That will be a key thing to remember as I swing back to that at the end. 

Bottom-line: I'll show you how you can start your FBA Biz in a way that you'll have the money you need to get the biz up and running well. 

What to Expect in this Post

In this article, you'll learn what it takes to start an Amazon Biz in 2020 and how you can start a leaner business to begin with and then transition to an Amazon Biz after you've built up the capital. 

  • Planning Your Business (Beginning with the End in Mind)
  • Laying Out Your Budget (Focusing on the Numbers)
  • Corporate Credit vs. Personal Credit
  • Is all Debt Bad? (Truth or just Popular Myth)
  • Planning Your Exit (Removing Yourself from the Biz You Started)

5 Steps to Planning How to Start Your Business with Little Cash

Step 1: Planning Your Business

Before you start your business, make sure you know where you are going.

Business Plans have 3 parts:

I. The First Part has 3 primary characteristics:

1. Mission of your Business: How will you conduct business?

2. Vision of Your Business: What is the end goal of your business?

3. Value Add: How your business will uniquely provide value to your customers?

II. The Second Part contains your Specific Business Objectives and How you will achieve them: 

This should be a timeline with basic steps that you will take to achieve each objective. 

The way I made my business plan is that I outlined my first three years and then broke each year down into quarters, with specific revenue and profit projections and how many products with what margins  I'd need to sell to hit those objectives. 

Now, if you've never started a business before a few of those terms might be fuzzy for you (like "revenue" or "profit"

You'd be like 

Man I jus' want to sell products on Amazon,

 not become a frickin' accountant

Success loves preparation. 

so in order to help you get started, I put together a fill-in-the-blank business plan similar to the ones I wrote out when I want to really scale my businesses to greater heights. (wrote one for my lead gen biz as well as my FBA Biz.)  

Step 2: Laying Out Your Budget

When you start an Amazon business, there's all kinds of expenses that you won't see coming, so it's important to layout what you do know so you can be ready for the unknown.

And listen, I know that we are going through a lot of non-sexy, dry, pretty boring material, but it's the structure that will make your business actually successful. 

As the saying goes,

if you fail to prepare,

you are actually preparing to fail. 

So put together a list of what you know. 

  • Educational Course Cost
  • Money Management Tool
  • Licensing Cost
  • Financial Management (Quickbooks)
  • Amazon Marketplace Tools
  • Keywords Tools Subscription
  • Product Production Costs
  • Shipping Fees
  • Review Management Services
  • Product Packaging Design and Production
  • Product Launch Costs
  • Amazon PPC (Ongoing Ad Spend)

That's a pretty long list of costs, isn't it? 

You'll need a way to stay organized and track all your expenses in a way you can easily see them. 

To see a sample FBA budget, hit the blue button. 

Want an Amazon Seller budget that you can download and customize for your own use?

I made that too.

It's the green button below. 

Step 3: Knowing the Difference Corporate Credit vs. Personal Credit

You are probably aware of your FICO score, aka your personal credit score. 

Personal credit scores can range between 350 to 850. 

These scores are affected by a number of things, including:

  • On-Time Payments
  • % of Credit Used
  • How Long Your Oldest Accounts Been Opened
  • How Many Times Your Credit has Checked

Corporate Credit has a couple of similar elements, but is ultimately very different. 

Your Corporate Credit Score ranges from 0 to 100,

0 being the worst and 100 being the best.

The main similar element is the importance of on-time payments. 

But with Corporate Credit, your level of utilization doesn't affect your score. 

The major factor is your % of on-time payments. 

How can you get started with Corporate Credit?

Here's how to begin your Business Credit in 7 steps:

Step 1: Get a Business License (Here's a guide to getting one in every state in the US)

Step 2: Get an EIN Number (It's a free form to file with the IRS)

Step 3: Open a Business Checking Account (go to your local bank with your biz papers)

Step 4: Get a Dunn & Bradstreet number

Step 5: Apply for Corporate Credit with a few companies, such as Amazon, Uline, Quill, Dell and Microsoft. 

Step 6: Make sure that your Biz Credit is reported to the 3 Corporate Credit Reporting Agencies (D&B, Equifax, and Transunion). A good one is MYM Marketing

Step 7: Spend a few dollars with each corporate credit company that your business has credit with and then be sure to pay the bill off immediately when it comes due. As you establish a reputation as a company that pays their bill on-time, your business credit score will increase and your ability to acquire larger credit lines to scale your company without being attached to your personal credit score will increase as well. 

Step 4: Using the Right Kind of Debt

I don't know about you but I was raised to believe that all debt is terrible, that getting out of debt was one of the most important things to do and so on. 

But when you are starting a business, something that you know is going to create income for you in the future, it's only a matter of time, it can be worth taking on some debt to leverage the expansion of your business. 

You are likely reading this with the goal of starting a business on Amazon.

If you can get a 25k personal or business loan,

you've got a solid shot at opening a private label FBA business. 

If you can't get a hold of that kind of money or aren't comfortable risking that amount,

you're not out of options. 

I didn't get my start with Amazon FBA,

I couldn't afford it. 

I was working at a car parts store making 2k a month and looking, in the evenings, for ways to make money online. 

Googling late one evening I bumped into a coaching program that came up topside in the search results. 

I got my start with this rank and rent training that enabled me to get away from my 9-5 and start earning 1% income. 

Then, once I had established that income stream, I started another business and tried my hand at in the private label arena. 

It took me 3 different products before the market took it and cost me nearly 20k to get my first sale. 

When it comes to Amazon FBA Product selection is everything, but the strategy to get started selling on Amazon that worked in 2016, doesn't work well anymore, mainly because it has grown so much over these 4 years. 

I wrote a guide to help you get your Amazon FBA biz started. 

It's all inclusive, so you can save some dough by not buying a an FBA course. 

I show you everything from how to set up your business to the meat of selling on Amazon, from product selection to branding, to scaling your business through adding automation and team members (virtual assistants). 

Hit the button below to go to the guide:

To get your business started, you might have to start with an easier, less expensive online business. 

But if it could enable you launch your dream brand on Amazon, wouldn't it be worth it?

Step 5: Planning Your Exit (Beginning with the end in mind)

If you don't know what your end goal of opening a business is, it's unwise to start one. you need to have some kind of plan in place to keep you on track.

But in order to even have a plan, you need to have an end goal. 

Do you want to get out of your 9-5 job so that you can determine your own schedule?

Do you want to create a business that you can sell down the road and then retire with 20 million in the bank from the sale of your enterprise?

When you are done with this business you're looking to start, what then?

When  I started my business, I had the goal of being able to leave my dead-end, soul-sucking job behind to be free to engage in activities that I really enjoy, such as spending time with true friends and traveling to unique places. 

After I had some success in my lead gen biz, I decided to branch out and see what it took to make money using other online models such as affiliate marketing, Amazon FBA and social media marketing

Don't have any idea?

It's okay.

I didn't have any idea until I went through an exercise ("7 Levels Deep") that I learned from Dean Graziosi, a real estate investor and motivational speaker. 

This exercise helped me focus and dig deep down inside myself,

Unearthing my subconscious reason for continuing to invest lots of time in my businesses even after I made enough to take care of myself. 

Essentially, this activity has you ask yourself why you want what you think you want 7 times, and by the end you found the real reason. 

Here's Dean's example: 

Want to learn more about this exercise?

I wrote extensively on his "7 Levels Deep" Exercise in a recent chapter on the Mindset it takes to be Successful in Business in 2020. 

Take the 5 minutes to read through the article and watch Dean's video explaining it. 

It will change your life.

It definitely transformed mine. 

It's well worth the time because once you get your mind right,

you are halfway there. 

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Ippei Kanehara
Founder/CEO Ippei Leads

$52K per month providing lead generation services to small businesses is for digital hustlers, industry leaders and online business owners.

His #1 online business recommendation in 2021, is to build your own 6-figure lead gen biz. You can learn more here.

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