I remember when I added my fiftieth LEGO set to my inventory. I was very proud of myself and felt that it was a huge accomplishment. When I look back now, I realize I accomplished very little.
At that time, I thought that buying as many sets as I could was the whole game. Since then, I have figured out that there are many other areas I needed to focus on to really grow the business.
Now, even though I’ve had plenty of success since that fiftieth LEGO set, I constantly believe I could be doing more for my business.
Am I stretching all my available resources to maximize inventory?
Am I currently up to date on my price alert notifications?
Have I spent the appropriate amount of time doing the research I need to achieve more than I did the prior year?
These questions and many others I ask myself daily. Below are steps I’ve taken to push myself to the next level of LEGO reselling.
Find the capital to invest
As we all know, Lego investing is a capital-intensive business to be in. What do I mean by that? You need money. This business falls on the border line between online arbitrage and reselling, and investing. The phrase ‘you need money to make money’ is absolutely true here.
So how do you approach this if you don’t have much money to invest to start and grow your business?
Work longer hours, or find a second source of income.
There have been many times in the past that I’ve worked extra hours or even an extra day at my job to finance my LEGO business. If you don’t hate your job and have the extra time, I encourage everyone to do this. Again, just like taking on a second job, that extra income you use to finance your LEGO business will grow exponentially over time.
Many years ago, I took a part time job at a transportation company where I netted $1000 a month – a tiny income, I know. The company went out of business six months later so my total income from that job was $6000. So how did I maximize this small income from the work I did in this hustle? I invested it in LEGO!
$6,000 invested at an ROI of 80-100% every 18 months will grow extremely quickly.
Another strategy I use in finding the capital to invest in LEGO is to buy on margin.
Even though I made a YouTube video about this, I rarely bring this up because there are some serious consequences if this is not managed correctly. Handle this with care, and don’t do it until you have an established business and experience with buying.
If you currently have a successful LEGO reselling business and you’re confident that you’ll make at least $10k in Q4, then an option is to open up a credit card with 0% APR for the first 12-15 months. Use the credit card to buy inventory, and then use your Q4 profits to pay off that credit card.
I have done this many times in the past and every time it has worked out well for me, but again I must stress that this is a more experienced tactic. It’s important to be disciplined with paying off any debt you take on in your business.
Set your goals, and then double them
Setting goals is extremely important in any business. It helps to keep you accountable, and helps you to plan the strategies you need to execute on in order to get to where you want to be.
There have been many times I have wanted to order a specific quantity of a LEGO set. 100 units of a set sounded like a nice number, but it seemed out of reach in the beginning.
However, not long after joining the reselling game, I began to challenge myself to double the number of quantities that I originally intended to buy.
Why did I do this? Because I could see the success that I was having, and I knew that if I increased my buying, then I could get to where I wanted to be at a much faster pace.
Sometimes this technique works, sometimes this technique is not possible. I have had to look at my business and personal budget and yes, there have been some lean times on the personal side due to this strategy, but in the end my business has benefited.
By pushing myself outside of my comfort zone, I have grown my LEGO inventory to much higher levels over the same time period.
Research, research, research
Educating yourself is one of the most important things you can do in the world of LEGO investing.
Since we are investing so much money up front, it is crucial that we make strong buying decisions.
Don’t skip out on the research phases of your buying process. Even if you are a seasoned LEGO investor with years of experience, you need to keep on top of this. Markets change constantly, and the LEGO inventory is an ever-moving target. New themes, licenses, and inventory come online all the time. E-Commerce is changing at a rapid pace. New competitors such as Mercari are growing quickly. Facebook have recently announced a new storefront product for Facebook and Instagram. The reselling world is moving fast, and we need to adapt with it.
Research is how you can do this.
Learn as much as you can. Subscribe to RSS feeds and YouTube channels. Network with other resellers and learn from them. Keep an eye on official announcements from The Lego Group, and other sources.
I can’t overstate the importance of this when growing your business. The more knowledge you have, the better your returns will be, and the less chance that you will make mistakes.
Go out there and get it!
I have been reselling LEGO for seven years now and plan to continue reselling LEGO for a very long time. But the question I keep asking myself is – what else could I be doing to grow my business? You should be asking this question too if you are serious about LEGO investing.
I hope you found this useful. If you did, make sure to check out our YouTube channel where we share regular tips and strategies for LEGO investing and online reselling.
Also, if you want to connect with other LEGO investors, join the free Facebook group here.
Do you think research is an important part in growing your business? Let us know in the comments below!