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What are the phases of an eCommerce Business? Stage 2: Profits $ 500,000 – $ 1 million (Part 1)

eCommerce Business stage 2

Does this sound like you?

  • ❓ Your online ecommerce business is outpacing your growth projections.
  • ❓ You may have (or be looking to add) multiple employees.
  • ❓ You want strategic advice on how to minimize your taxes before year-end.
  • ❓ You’re aiming to push your sales over $1 million, seeking efficient technologies and cash-flow forecasting to meet your revenue goals.
  • ❓ Your business is taking over your home, and you’re running out of space.

At this phase in your business growth, take a moment to pause and congratulate yourself.

Yes, you may:

  • 💡 Want to grow your business even more.
  • 💡Have a to-do list longer than a novel.
  • 💡Have more responsibilities and stressors than ever.

But that’s exactly why it’s crucial to stop and recognize how much hard work you’ve invested in building this company from the ground up. If you can’t appreciate your own hard work, why should anyone else?

That being said, you’re likely facing a whole new variety of challenges, from how to save money on taxes to hiring employees to cash-flow forecasting for the next Q4.

“You need to understand your data and keep an eye on key metrics to ensure the numbers are going in the right direction.”

A licensed CPA can become a vital asset to your business’s goals, tax strategy, and financial future.

For a business person, hiring a CPA is like constructing a financial “safety net” and securely placing it beneath your holdings. It’s a form of business insurance you can’t purchase from an insurance company.

But you’re not just gaining procedural and technical knowledge; you’re also expanding your team — the people who have your back when you need financial direction and business advice.

It’s astounding to new entrepreneurs that businesses can be built from the ground up by a small, select number of people.

Having a CPA on your team is invaluable due to their role as both a soundboard and a strategist. Seeking an objective opinion on your business’s state of affairs is one of the best ways to stay grounded and supported as you grow your eCommerce business.

Look actively for mentors — their advice can be priceless, even for little things like acquiring business licenses. One of the smartest decisions I ever made was finding someone who could show me the ropes.
– Darren DeMatas, eCommerce CEO’s founder

Even if you’re determined to figure out everything yourself, a CPA advisor can help guide you through uncertainties, complex processes, and maximizing tax deductions without taking away any of your authority over business decisions.

An experienced CPA provides strategic context for your decisions, which remain yours to make, and can significantly impact your financial future.

Why You Need a CPA for Your eCommerce Growth

In addition to having a CPA as a strategic partner, they can help you make sense of numerous complicated processes. Running a successful eCommerce business means tracking your business and personal finances.

Just like your health is checked by a doctor, your assets should be checked for general wellness by a licensed CPA.

Start by determining your net worth and seeing its trend.

Next, calculate your debt-to-income ratio.

Armed with these numbers, you’ve completed the most challenging step.

You can then track your spending and know where your money is going. This way, you’ll know if you’re overspending.

After that, you can set up an emergency fund account and focus on your investment strategy. But first, ensure your financial health is… well, healthy!

Assessing your current wealth is vital for managing your cash flow and helping grow your business.

A CPA advisor can help create a budget for your business and personal finances, determine how much to pay yourself from your company, estimate your income taxes, and identify opportunities for tax-deferred savings to minimize your current year’s tax burden as much as legally possible.


Contact us today for personalized and relatable financial guidance.

Insogna CPA