What Makes a Great Investment? How to Spot Profitable eCommerce Brands
Let Fund Manager Jayden Scott guide you in spotting profitable investments! When it comes to investing in eCommerce, my strategy always starts with a clear checklist. Over the years, I've honed a method to uncover high-potential brands that not only deliver strong returns but also stand the test of time. If you're an aspiring investor or simply curious about what makes an eCommerce business a winner, here’s my breakdown of the essential traits to look for. 1. Strong Margins and Financial Health One of the first things I look at is the financials. Great investments come from businesses with solid profit margins and a proven track record of revenue growth. I focus on gross margins because they reveal the efficiency of the business. Anything above 40% often signals operational strength. A healthy balance sheet and minimal reliance on loans are also key indicators of long-term viability. 2. Loyal Customer Base Profitable eCommerce brands thrive on repeat customers. I alwa...