How much it REALLY costs to start an Amazon DSP business in 2024

Summary

In this video, Sydney Tarer discusses the concept of startup costs for launching a Delivery Service Provider (DSP) or any business. He emphasizes the importance of having a substantial initial investment to cover unexpected costs and suggests aiming for $75k in capital. Tarer shares practical advice on overcoming financial barriers, such as engaging in sales or leveraging online platforms like Alibaba to generate the necessary funds. He encourages viewers to think big, invest in assets, and let go of self-limiting beliefs to achieve success in entrepreneurship.

Takeaways

• 🚀 Starting a business, such as an Amazon DSP (Delivery Service Provider), requires a significant initial investment known as the startup cost.
• 💡 The startup cost is similar to a down payment on a house or car, representing the initial capital needed to begin operations.
• 🤔 Amazon expects potential DSPs to demonstrate they have at least $30,000 to cover initial business expenses and to show commitment to the venture.
• 💼 The $30,000 is not paid to Amazon but is meant to ensure the business owner can cover various startup costs such as equipment, payroll, and unexpected expenses.
• 📋 Essential startup costs for a DSP include uniforms, phones, safety vests, equipment racks, and other operational necessities.
• 💡 The speaker emphasizes the importance of having more than $30,000, suggesting $75,000 as a better cushion to handle unforeseen costs and establish robust systems and processes.
• 📈 The speaker advises thinking big and not to let the initial capital requirement limit one's vision, suggesting to think 10 times the initial amount for a business.
• 💰 To accumulate the necessary capital, the speaker suggests engaging in sales, affiliate marketing, or sourcing products from platforms like Alibaba to sell at a markup.
• 🔑 The script highlights the importance of building a strong online presence with multiple 'buy buttons' attached to one's name to drive sales and revenue.
• 🚀 The speaker encourages overcoming self-limiting beliefs and seeing opportunities everywhere, emphasizing a 'diamond mind' approach to identifying wealth in every situation.
• 💡 The importance of investing in assets that generate income is stressed, rather than just accumulating cash.

Q & A

What is a DSP in the context of Amazon?

A DSP, or Delivery Service Provider, is a company that handles the last mile delivery of packages from warehouses to customers' doorsteps for various retailers, including Amazon.

What does the acronym 'DSP' stand for in the transcript?

DSP stands for Delivery Service Provider.

What is the significance of the 'startup cost' in starting a business according to the speaker?

The startup cost is the initial capital required to begin a business, akin to a down payment on a house or car, and it's essential for covering the initial expenses and risks involved in starting a venture.

What misconception does the speaker address about the startup cost for Amazon DSP?

The speaker clarifies that the startup cost is not about giving $30,000 to Amazon, but rather having that amount to cover the initial costs and demonstrate a commitment to the business.

What are some examples of startup costs mentioned in the transcript?

Examples of startup costs include uniforms, vests, phones, phone devices, trucks, equipment racks, safety gear, payroll, and advertising expenses.

Why does Amazon want to see that a potential DSP has a certain amount of capital?

Amazon wants to ensure that a potential DSP has the financial means to cover startup costs and manage unforeseen expenses, demonstrating a serious commitment to the business.

What is the speaker's advice on how to accumulate the necessary startup capital?

The speaker suggests engaging in sales, affiliate marketing, or sourcing products from platforms like Alibaba, marking up the price, and selling them to generate the required capital.

What is the importance of having more capital than the minimum startup cost according to the speaker?

Having more capital than the minimum allows for better risk management, the ability to invest in systems and processes upfront, and a smoother operation as the business scales.

What is the speaker's perspective on the mindset one should have towards money and business opportunities?

The speaker encourages having a 'diamond mind' that sees opportunities everywhere and not letting the fear of money limit one's ambitions or business growth.

What advice does the speaker give for those who want to start a DSP but lack the initial capital?

The speaker advises finding ways to make money on the side, such as sales, flipping products, or connecting deals in real estate, to accumulate the necessary capital.

What is the role of 'skin in the game' as mentioned by the speaker?

'Skin in the game' refers to having personal investment and risk in the business, which is crucial for demonstrating commitment and ensuring one is prepared to cover costs and risks.