Launch Your High-Ticket Dropshipping Business on a Budget

What's up guys, Trevor here with eCommerce Paradise and today I wanted to talk to you about how to start your eCommerce dropshipping store with very little upfront investment and basically if you have hardly any money to work with, this is how you're going to get it done. So number one, super easy. Obviously you've got to get a formal business started. I would recommend forming an LLC.

That's the first thing you should do. Depending on the state you're in, it may have different costs, but the one provider I recommend is using a company called Busy, B-I-Z-E-E. You can use my affiliate link at ecommerceparadise.com slash busy, or go to ecommerceparadise.com slash resources for all the different things that I recommend. So get an LLC started. I would recommend forming in the state of Wyoming.

Wyoming has great privacy protection, so it makes it really hard for someone to figure out who actually owns a business. This would be good for any competitors that are trying to look you up and trying to figure out who owns the business, that kind of thing. So protect yourself, protect and privacy form of business in Wyoming. The next thing that's cool about Wyoming is there's no income tax and no franchise tax on your business.

So make as much money as you want. You're not going to owe any of that to the state. Now you do have to pay a small fee to get registered with the state for sales tax. So you'll need to go to their Wyoming Secretary of State website and pay a $60 fee, I think it is. It's pretty easy to do and to get started it's, you know, just a form you have to fill out. So just get that done. That'll get you to be able to avoid having to pay sales tax to your suppliers.

You know, super easy. So, so far the LLC maybe costs $100, $200 to file. Along with that, you can get an EIN number. You can file it yourself for free or have them do it for you for a small fee. And so with that and the seller's permit, it's like a few hundred bucks, maybe total. Next, you'll need to go into a bank once you have the paperwork ready and they'll set you up with a business checking account.

At that point, you'll have a business checking account. You can sign up for a business credit card right then and there, or you can wait and look for proper sign up bonuses. If you go to my blog and find the best credit cards for drop shipping blog post, or you just go to ecommerceparadise.com credit cards, it'll take you there as well. You'll find my highly recommended credit cards, business and personal, but mostly business, and they're for drop shipping.

A couple of them specifically are for ad spend, and then the rest are for cost of goods sold. And some specifically are for shipping and they'll get you sign up bonuses and more points for this particular expenses that your drop shipping store will have. And that way you'll make the most of it. And you'll be able to do a lot of like really cool luxury traveling.

At that point and before that hopefully you'll have good credit already if for some reason you don't have good credit then that would do is definitely try to figure out how to make your credit better figure out what the problem is and then reach out to the people that have put you know bad notes on your credit report if you have any to try to get those resolved and if you don't have any but maybe you just have like a lot of debt try to get that paid off try to get the debt consolidated,

lower interest, that kind of thing. But there's lots of great resources online and companies that actually provide these services for debt consolidation. So if that's a problem for you, definitely figure that out first. If you have good credit, then you'll be able to get high credit lines with the banks for your business credit cards. And with those credit lines, you'll be able to start a dropshipping business.

Dropshipping, the way it works is you get paid and then you pay your supplier and then you pay off the cost to get sold and you keep the difference and that's the margin profit margin and so usually with high ticket dropshipping you're going to be taking some back orders and so your business bank account will run up quite a bit and your credit cards will run up when the things ship out usually so you'll kind of be doing this constant back and forth between having a high checking account balance

versus the high credit credit card balance. You just have to make sure you manage your finances properly. I recommend keeping a bookkeeping spreadsheet to do that. I have a bookkeeping spreadsheet available in my High Ticket Dropshipping Masterclass where I teach people how to start, scale, and sell high ticket dropshipping businesses. You can check that out at ecommerceparadise.com slash masterclass.

And this is where a lot of people get caught up because it's easy to see a high checking account balance and think you made a lot of money when in reality, you actually owe a lot of that money back to your suppliers. So don't get caught up spending all your money. You need to put that money aside. So I'd recommend starting a business savings account just to specifically put money aside for the orders and for saving for your taxes because you're going to have to pay taxes eventually too.

So definitely do that. But the thing is, is that you don't need a lot of money to start one of these businesses. You can easily start it just by using business credit cards. So hopefully you'll have at least a $10,000, $20,000, $30,000 limit. You can apply for multiple cards. What I recommend doing is applying for two to three cards every three to six months max.

Those will hopefully get approved. If they don't get approved right away, you can always just call the bank and ask them, hey, how do I get approved for this credit card? And they'll give you what you need and then hopefully they'll approve you from there. So you can always just, if you don't get approved, you get declined or you have a pending notice, don't just wait. Call the bank right away.

There's always a thing called a reconsideration line. You can call them and ask them, hey, what do I need to provide you in order to get approved for this card? Sometimes they'll just tell you straight up for whatever reason they can't approve you, but usually they'll ask you, okay, was this you that applied? If yes, okay, that's all we needed to know. And then they'll will approve you. Sometimes they'll ask you, okay, we need additional information about your business,

blah, blah, blah. You just provide them the information.

Anyway, so it's pretty simple stuff. The top banks that I like working with are number one, Chase. Chase has the best business credit cards, in my opinion, and personal cards. And the way they structure their points program is also incredibly easy to use. They don't have the best Chase travel portal, in my opinion, but But the Travel Portal does work and, you know, can work great for finding hotels or cheap flights.

MX is my other favorite, although you can't get a very good points reward for cost of goods sold beyond a certain amount, which is quite low. But you can get really good for ad spend. So if you scale your ad spend up a lot, I recommend going with MX. They have a card that gives you 4x points that are transferable. And then the third one is Capital One. Capital One does, you got to be careful with Capital One because they do do two credit hard inquiries when you apply for a credit card.

But if you can get either their 2% back cash card or miles card, that's great for a cost to get sold. So I'd recommend definitely doing that. Some other banks that might have some other good programs you might want to work with, Wells Fargo, Bank of America, Discover, Citi. But the Chase, Amex, and Capital One trio are what I've been using for a long time to get the most return for the ad spend and the cost of goods sold and expenses.

And then also be able to flip that into super luxury travel experiences, airline and hotel program transfers for points.

So kind of the best way to go. So just keep in mind, high ticket dropshipping has a fairly high revenue, but low margin business model. So usually like if you do it the correct way, which is setting up a really good high quality Shopify store. Optimizing it for SEO so you get some SEO traffic, but then setting up a Google Ads account and Merchant Center and driving ads through Google Shopping, you're going to be able to find that you're going to get traffic right away.

It's targeted traffic, you make sales, but it's going to reduce your margins quite a bit. Usually what we work with is like 20 to 30% gross margins, sometimes lower, sometimes higher. But usually Google Ads is going to take about half that margin away. So if you get to 20 to 30%, you're really working at a 10, 15% net margin every month.

And if you start to have a big team and you want to scale a lot maybe make more content that kind of thing or do just spending more whatever area of your business that's gonna of course lower your net profit as well but the biggest benefit of high ticket dropshipping is the high spend on cost of goods sold and ads which can all be put into your credit cards which can result in tons of points every single month and then you'll be able to you know get maybe a 10% or so that

profits so if you can scale 50 to 100,000 you're making $5,000 to $10,000 every month in net profit. At that point, what I recommend is do not reinvest all your money into your business. You know, make sure that you keep a personal budget and save some of your money because there is going to be a rainy day. There always is with every business. You know, every business has seasonality and stuff like that. So definitely put money away for those.

Definitely save money to pay off your suppliers and pay taxes as well. Be diligent about that, guys. Also, with your profits that go beyond your personal spend, I would recommend investing into the stock market and also doing some options trading as well on the side with a small amount because if you can learn how the markets work and get a really high return on your money and kind of, you know, make your money work for you, which is the best thing to do. So definitely look into that.

But that's kind of how you can get one of these businesses started. After a year or two, if you're successful with it, you can actually look into selling your business. You know, after a year or two, if you have net profits of at least two to three thousand dollars your business will be worth upwards of you know maybe fifty thousand hundred thousand hundred and fifty or more so look into that lots of good business brokers out there.

Don't get your hopes too high about high valuations. With dropshipping businesses, it's really easy to compete and start new stores. So 20 to 30x monthly multiple on net profits is usually about right, what you'd look at. But in order to sell your business, you definitely need to have somebody running it for you. So you're 100% going to have to hire a VA for customer service, inventory management, price updates, and maybe some content and SEO stuff as well.

So all right, guys. Well, I hope that was helpful. definitely look into starting a high ticket dropshipping business it's location independent easy to run you know it's fairly inexpensive to start and it's very scalable you know don't stop there there's lots of room for growth lots of other things you can do as well but high ticket dropshipping was my favorite one like I recommended the one I teach mostly so if you're interested to learn more you can go get

my free niches list and mini course on high ticket dropshipping ecommerceparadise.com slash niches and slash mini course. And if you really want to get started, get my full course of over-the-shoulder videos where I teach my own team how to build and scale these stores. And I provide those videos to the public as well. Go to ecommerceparadise.com slash masterclass.

And if you're in the position where you have some money, but you don't have a lot of time to spend going through a course and doing it yourself, I also have a program for you. It's my turnkey high-ticket dropshipping done-for-you program where we build you a store and a business, launch it, and then you just take it over and run it and that can be found all the information on that is at ecommerceparadise.com. Turnkey alright guys thanks for watching and i'll see you in the next video.