When an opportunity shows up in your business, are you ready to move on it, or do you have to go ask a bank first?
About half of the ecommerce owners we surveyed aren’t financially prepared to make a move.
If that’s you, you’re scrambling for loans or credit cards when it’s time to scale, launch a new product, expand inventory, or hire help.
You’re gambling when you’re really trying to grow instead.
What we found is that thriving businesses reinvest a portion of profit back into growth consistently, setting it aside before it gets spent on anything else.
When an opportunity shows up, they’re ready to move. They don’t have to wait on approval from a bank to find out if they can afford to say yes.
This is one of the clearest differences I see between businesses that compound their growth and businesses that just bounce from one funding scramble to the next.
It’s an easy answer: a dedicated account, a fixed percentage of every payout, and the discipline not to touch it until the opportunity is actually in front of you.
If you’d like help setting up a growth fund that means you’re never waiting on a lender to say yes, reach out and join our wait list.
Cyndi
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One question before you go I am revising my current book, Profit First for Ecommerce Sellers, and I don’t want to write it from research alone. I want to write it from what is actually happening in your business. Could you help me out by answering the below question?
Which lenders are you currently using in your business today? |
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Quick Summary
- About half of ecommerce owners aren’t financially ready to fund growth when an opportunity appears.
- Reactive funding (loans, credit cards) means scrambling instead of scaling.
- Thriving businesses set aside a fixed percentage of every payout into a dedicated growth fund before spending on anything else.
- A growth fund lets you say yes to opportunities without waiting on bank approval.
- The discipline is simple: separate account, consistent percentage, don’t touch it until the opportunity is real.
Frequently Asked Questions
What does it mean to fund growth from profits instead of a loan?
It means setting aside a portion of every payout into a dedicated account before it’s available to spend, so cash is already there when a growth opportunity — new inventory, a product launch, or a hire — comes up. Instead of applying for financing after the fact, you draw from funds you’ve already reserved.
How much profit should I set aside for a growth fund?
There’s no single number that works for every business, but the principle from Profit First is consistency: a fixed percentage of every payout, taken off the top before other expenses, so the fund grows steadily regardless of how the month is going.
Why not just rely on a bank loan or credit card when growth opportunities come up?
Loans and credit cards are reactive — you’re applying for approval after the opportunity has already appeared, and you may not get approved in time, or at all. A growth fund puts the decision in your hands instead of a lender’s.
How do I start a growth fund for my ecommerce business?
Open a separate account dedicated only to growth, decide on a fixed percentage of revenue or profit to move into it with every payout, and leave it untouched until you have a specific opportunity in front of you.
Reach out to Your Profit Team if you’d like help setting up a growth fund for your business.
