Hi, this is Daniel here and in this video I'm going to show you why you can't grow your private label business. So I see a lot of sellers that work hard, they put in a lot of time and energy on their business, but for some reason it just doesn't grow like it doesn't go past a certain point and it's like you're always hitting your head against the wall. And then on the complete opposite side of that, you have sellers, like many of my students that are actually able to systematically and predictably grow their businesses. So what's the difference? In a way, are some sellers able to actually grow their businesses with predictability? And then on the complete opposite side, most sellers are actually not able to do this and they might have some success, but then it's like they get stuck and no matter how hard they work, the business just does not move forward.
So let's hop on over to my screen here. I'm going to actually go into visually illustrate how this works and I'm going to show you inside of the mechanisms off the business and really gets you clear on the things that actually move the needle on this business. Because once you are clear on that and you really understand like the internal mechanisms off this business, that's when you can actually move the needle on your business and you know that the things you're doing actually have an impact. So that's when you can actually start to grow your business systematically and predictably to the point that you want. So that's all over to my screen here and I'll show you exactly how this works. All right, so now we're inside my computer here and I'm, as you can see, I have this whiteboard here and I'm going to really just get sold and show you the visual, illustrate the mechanisms of a private label business.
And this is really the core of how it all works. You know how it all functions and the way you assemble these mechanisms, the way you work with these mechanisms is going to determine really the attraction that you get in your business and your ability to really grow the business. Or if it's not assembled correctly or things are missing. Or if you have a unnecessary things in here that clock the machine, things like that, then your business will not grow, right? So it's really the culprit off a business that doesn't grow. And it's also the way to actually make a business grow predictably. So let's, um, let's go through this and how it works. So as you can see, I have two circles here and the first one represents your supply chain, right? So your supply chain is everything to do with manufacturing your products and getting them basically into the hands of your customers.
And then the second thing here is advertising. So obviously you have to advertise what'd you have to sell? So, you know, we can call it the marketing as well, but you have to get out, have a way to actually expose what'd you have to sell to customers. And then have them buy your product. So we can also actually call, like we can call the supply chain, um, just products, you know, to make it even simpler if you could just call it products. Cause that's really what the supply chain is about. It's just the budget product, right? And then advertising is really just a bolt sales, right? So that's really what it's about. Just making sales. So we've got product and we've got sales and then you know, there's a couple of like main things that you're looking to achieve basically with your arm Mithras supply chain.
So for example, you know, you want to obviously stay in stock, like that's the main objective essentially off your supply chain, you know, is to actually stay in stock. Because what's the use of having products like that aren't in stock? Like you can't, obviously Megan is sales, so that's like a primary objective within your supply chain. Another one would be to lower costs, right? So within this mechanism, you want to be lowering your costs, increasing your profit margin, things like that. And constantly optimizing there. You want to increase quality or at least maintain quality, premed, quality issues, things like that. So that's another main, uh, basically objective within your supply chain, right? That you have to accomplish and you want to accomplish it better and better and better over time. Another one would be to like shorten your lead times and there's obviously more, but I'm just giving you some examples here, right? So these are all really important things within your supply chain, right? So for the products that you're selling, you know, these are really important things that, how a huge impact on the success and you know, the, the potential here within your supply chain, right? And I'll make this really clear in just a moment, but that's, you know, a quick summary for your supply chain, for your sales.
Obviously, you know, you have things here like your listings if you're selling on Amazon, so listing optimization, right? Uh, and just having a really good product, Peters and offers on Amazon that actually convert, right? That's a really important objective within your advertising. So keeping it as simple as possible, like what's essential when you're selling an Amazon, while having really good optimize listings is essential to be able to advertise and sell a well. So critical, another critical piece would be your a Amazon PBC, right? So you have to have really good PBC systems. It's really to generate the most amount of sales on Amazon and really optimize for rank and visibility and everything, right? So we have that. Um, now you have your, um, like you need to, uh, generate reviews and you need to have good reviews, right? To really, um, sell well and all this good.
You know, you could put this under listing optimization, I guess, but there's, you know, a couple of key things that have to be done to really sell your private label product on Amazon, right? So you've got that. And then we can really just look at it like, you know, with in basically these core functions of the business, you know, it's like you've got these wheels spinning, right? So stay in stock, you know, so inventory planning, right? Lower costs, maintain an increased quality work on your lead times. Things like that. And then within your advertising, you've got like your listing optimization, you've got your Amazon PBC systems and you know, your review of generation and maintenance systems and things like that. So, you know, there's basically a couple of core things that must happen and the most happen really well to make the most of each function of your business, right?
So if for example, um, you're like not staying in stock with your supply chain, you're always running out of inventory, uh, or if you're, you know, you have quality issues, right? Or you're overpaying for your products, uh, your lead times are like three months or something. You're going to have issues like your supply chain really isn't good. So that's a huge, huge thing that's going to limit you. Ms sales, same thing. Like if you're listing siren, properly optimized, massive, massive thing that's going out. Just, you know, limit your sales potential dramatically for the products that you have. Same with PPC, right? Same as the reviews. If you have bad reviews, um, or you know, they're not, yeah, they're not up to par with your competition. It's going to be a struggle. So let me show you a few more things here that are really important, right?
So that's not all. So we have more, right, more mechanisms. These two are really like the main mechanisms, but we've got another one here that's also really important. And we call this one just, we call it R and. D. so this is just like research and development for your business, right? So this is like your product research. Let's put this in here so you can see it. So these are things like, um, so like basically new products, right? Product resource, finding new products, developing new product ideas, and then like product strategy or re we can say like, uh, yes, strategic differentiation. So actually having something that is, um, not just like a me too thing, that then has the potential to really sell a well. And then we can put things like improving, like improve your current products, right? So obviously when you have products you want to make sure you're improving those products.
So we've got these elements and we can also, you know, make these, uh, these are like these Rios in here that are spinning, right? So these must be spinning well, and then, uh, that's really like the bulk of it. There's actually one more, uh, mechanism within the business that's really important, which we'll put on here as well. I'll put it kinda to this site because this is really, uh, like a secondary thing or a supportive thing and it's like admin, admin slash. Support, right? So we've got that mechanism to, and so what are we doing here? Right? So we're actually supporting the business, maintaining the business. So you've got obviously your, uh, customers that you have to take care of. You've got, um, you've got like finances, right? You had to make, um, make payments and pay your suppliers, people products you need to receive, obviously a PLT for your sales on Amazon, for example, things like that.
And then you might have like a team. So it was as you scale, you're going to have a team, you're going to have some people, which you also need to take care of. And so you've got a few things in here too that are really key to the business. Like a couple of uh, key plates that are spinning. So that's really, you know, what it looks like. And these are all the main mechanisms really have a private label business. And I'll show you here in just a moment the precise mistake that I see sellers make that means that this uh, this chain here, cause it's really a chain is flawed and it's like it's, it's not linked up correctly and it's inefficient. It doesn't approve those results and how you can actually make this chain really powerful and have it actually produce, you know, fantastic results.
Uh, so the, you know, either think could be the case but really this is the main chain here. You know, you've got like your new product, strategic differentiation by improving products, things like that. Like some key things that this must happen if you're going to actually have a good business then for supply chain, you know, you have some key things here too for sales key things that must be done well for this chain to really work and click and actually produce results. And then depending on the size of your business, you're going to have admin and support. It's going to be really simple in the beginning. And then O Z, you know, one key thing you have to do to grow your business and grow this chain here and actually, you know, put more and more through it is you've got to obviously have a stronger support, um, basically mechanism in place.
You know, you might have more people working for you, things like that. But now the other thing I really want to show you is really how this then works as this chain. Cause it's really like a pipe, you know, it's like a chain and in business really what it's all about is just delivering value, right? So with your product, what you're doing is you're exchanging money for value. And the more you can provide value, meaning like the more good products you can sell and the more of them you can actually sell. So the more products great products you have and the more of each one you can sell. So you multiply its product, you know, by a factor of how many people are exposed to the product and wanting to buy it because it's a good deal. You know, you're giving them good value in exchange for the money.
Like the more you can do that, the bigger your business is. It's really that simple. So what happens here is, um, you like put money into the business, right? So to start you have to put some money in and that starts the whole thing, right? So you started with a product and it starts the whole cycle. And then obviously the end result of this thing is that it should produce more money. That's, you know, that's the, the net, you know, that's what you're really doing. You know, you're exchanging value for money and by doing so, if you're doing it right, you should be making more money. So it's like a plus minus thing because you could actually lose money here too, which does happen. And then some of his money, you know, it's gonna go actually, um, it's going to go like into admin and support in a little bit of that.
But then you should have more money left over us profit that you can know, like funnel back through here and into your business, right? To then add more products in or buy more inventory, things like that. So a lot of it, we'll just concentrate in here because you're just reordering. But some of them will come into the R and D department and actually releasing new products and things like that. But this is like the core, uh, mechanism off the business. So now let me really explain like where people go wrong with this. So what's like, what's really the, um, the problem? So the problem is really connected, first of all to the fact that like all of these things are pretty much essential, right? So you have to do all of these things well and you have to do them consistently and you have to do it for all of your products.
And if you want to grow the business, you're going to have to add more products or you're going to have to do these things consistently, completely and well for every product and more and more product, right? So these are core things that you just can't, like the business wants to function without these core things. It's all, the problem here is that a lot of sellers, you know, they fuck this thing up, right? So they have like a business with a few products and then they're just not able to add new product, right? And then that's a huge thing that's obviously going to limit their ability to grow because they might be already too inundated with all these things. And then, you know, they don't differentiate. They just sell me two products. And this means that, you know, you have no strategic advantage. You're basically just fighting for scraps, cause you don't really have anything of true value to sell.
You're just a copycat, you know? Then they're not improve their products and that can tie into like their quality control, right? So their quality issues and they get bad reviews or Amazon doesn't like them as a seller or the products get into trouble, they might even get suspended. So they're loose like a product on Amazon, something like that. Then they might always be running out of inventory, which is going to dramatically obviously like cut the flow of value here because you don't have products to actually sell, right? So anytime you don't have a product available to be sold or bought by a customer that it was the minimized, like that reduces the, the flow floor value in your business. Right? So that's another thing that people mess up. Um, you know, you may be really inefficient with your supply chain, so your lead times are like way too long.
Um, and things like this, you might be older paying for your product so your margins are bad or you're not really competitive. And then you might be really, you know, just very naive with your PBC and you're doing PBC, uh, just okay, because you don't think it's that important. But in reality, like you're losing out on your biggest opportunity to actually sell more and optimize your sales and get more traffic. You know, you might be bleeding a ton of money in PBC. You might have listings that are just, you know, okay, but they're not really optimized. You're not really doing it right. You're not properly optimizing your keywords and your indexation and your rank and you're not really leveraging elements to increase Peyton direction is to help you with organic ranking. You know, there's things like this, you might not be able to get reviews and these are just, you know, really simple things that honestly, if you want to grow this business and you want to have a strong mechanism that is relatable, that's predictable, all you've got to do is just these core things extremely well, right?
And if you're not doing them at least well and consistently for every product you have, and you're not able to actually just do these simple things well enough, uh, to, you know, do a good job of every product to actually then be able to add more products and things like that. That's where the thing is fucked. You know, that's where the problem is. That's why you can't actually grow the business. And then the craziest thing is that I see a lot of people not have these things like properly in order, right? So these things aren't demon, uh, acceptably acceptable, you know, to be, uh, to have a good business. Like they're just not being done properly. And then they're trying to do like Shopify and many chat and like all these different things like Facebook ads and they just want to do all these different fancy things within their sales cause they think the problem is here, but the problem is not here.
You know, the problem is, is right here, like in the just core mechanisms off the business, you know, the solution, the reason they're not growing is not because they don't have, you know, more wheels spinning here. It's really just because again, these core things aren't even spinning, right? Or maybe not spinning it all. So that's the problem, right? And then know when you want to scale your business. So let's say you get this stuff in order, right? And you actually are doing these things well, like you've got your R and D, your supply chain, and even your advertising dialed in like your listing optimization and PPC and just like the core essential things you have to do to be able to really make this business work for you. So let's say you've got that in order. Now what happens is that when you want to know, grow the business, you're going to basically, you're going to add a multiplier to all these things, right?
So now let's say you grow to like four products. If you want to have four products, this means that you're going to have to do all these things that you might be doing right now by yourself pretty well. You're going to have to do all these things, um, more often, right? You're going to have to handle more volume. So to let more value flow through this chain, through this pipe, you can look at this as like a pipe to have more value flow through it. You need to like expand the capacity off this pipe. You need to expand the capacity off your business to have to be able to push more and more value through it. So to be able to sell more products but also more off your products, right? So anytime you want to grow the business, you need to basically multiply these things and be able to do more.
So you need to expand the capacity off the business, right, to, to, uh, to produce value and let the value flow and not like fuck it up by running out of inventory and things like that or wasting money on PBC. Cause then you know, you might have the value, but you're just like, you know, you're cutting into it all the time and it actually doesn't flow fully through the business. So now what happens is you need to look at another area of your business, which is, uh, which is this right here, right? So now you have to look at how can you actually make this more scalable? So you're going to have to, uh, for example, work on your team and things like that. You might do look into your cashflow and finest there. So you can actually grow this cycle a bit faster and maybe you need, you know, there's a couple of things you can do, I'll see, but you might need some extra cast to put in here to grow it faster and things like that.
Um, but of course you also need to have these systems in place and you have to be able to scale them up, right? So one thing is to do everything yourself, have it all in your mind, in your brain. And another thing is to actually, uh, put it on paper and be able to delegate it to a team and actually do these things as well at scale as you were doing it. You know, when it's you doing everything. So that's really the challenge then when it comes to scaling your business. So I hope this gives you awesome clarity on the mechanisms in our private label business and really just how it works. So if you're trying to do things that are outside of what's on here right now, and if you're being honest with yourself and you say like, I'm actually not doing these things well, like these things are actually not, or this, some of these things are not actually being done well right now, then you need to, you know, you need to wake up.
You need to realize that these are core things that must be in place. You know, these are core mechanisms in this business. And if these things are not being done well, then that's your problem. And that's why your business isn't growing, right. So if you're, if you're just at full capacity here with these things, so you're just not able to add new products, that's your problem. Right? That's why you can't grow at the same time if you're not even doing these things. Right. Well, and then you're trying to do like this other thing and this other thing like Shopify and, and um, you know, Pinterest and Facebook ads, that's your problem. You've missed the point. Like you need to get these things dialed in before you try to add anything else. And then really if you want to scale, you just need to add this multiplier successfully and you might have to incorporate a team.
You need to obviously make everything really systemized so you can actually again do it, uh, for more products and still really well. And you know, so you expand the, the pipe, you know, the flow of value in your business and that's how it grows. So hope this makes sense and I hope this gives you clarity on a why your business might not be growing and you're still working hard and B, how to actually take things to the next level and ramp them up. So hope you enjoyed this video and that it gave you some good clarity on why you can't grow your private label business. And if you like this video, then I would love to hear back from you and you can just comment below the video and let me know what you think. Again, I'd really like to hear back from you. And if you're looking for help in growing your business, or if you're already selling on Amazon and you're either feeling stuck, like you can't grow the business, or if you're already growing the business, but you just want to get things even more dialed in, more systemized, more optimized, and do you want to grow even faster, then I'll place a link below this video, which you can use to schedule a time to speak with me one-on-one and see if I can help you with your business.
And we can go through specifically these mechanisms in your business and what they're like right now and if there's a room and an opportunity for you to improve these things and the scroll your business faster and more predictably. So again, I'll put a link below this video so you can retell to me and schedule a time to speak. So that's it for this video. I hope you enjoyed it and I'll talk to you again soon. Bye for now.