New to the site and to community. Scanned through tons of emails and advice including the community home ideas and events / ideas, but have some real concept questions to ask those successful business people out there.
Senerio: Assuming all research on retail business ( brick / mortar ) done, competition limited, lease and store location fair to good, area is vacation spot ( lots of tourists), business plan written, incorporated, credit card and bank account established, retail lisence checked out, start-up cost including merchandise calculated, have space for inventory and supplies, have idea and some skill in store layout ( building / buying displays, light fixtures, counter set-up, etc.), have POS software (intuit) and computer ready, Time line to poss. open? maybe 1.5 month.
- In all reality what is the earning potential of a small / medium retail store? ( gifts, candles, cups, home-decore items, sm. furnitures - nothing in the $1,000.- range). I mean there certainly is a sort of ceiling since the mark-up is approx. 50-100% on items ranging from .50c to $500.- and sqft of store is say 800sqft.
- What % does one need to compensate for theft? Both shoppers and poss. employee.
- What is the running cost, including my own salary ( how much can I ask to pay myself ) but not including purchase of new merchandise.
- Assuming an avrg. cost of products ranging from .50 to 300.- and having an area of approx. 400sqft of products displayed, with mark-up of 25-75% of original cost, How many items must I move a day / week / month in cost to cover my expanses?
- As a personal question - If I do not mind the tediousness sitting in a store, proficient in technology, friendly and good people skills -is it worth leaving a decent job in an industry that I will not be able to continue into my mid 60`s ( I`m in my early 40`s ), knowing that at this juncture to start over after failure of business is very difficult.
- What exactly is the statistic and reality for retail business failures, and at what point should one look for the signs to call it quits before more loss is accumulated?
I know this sounds a bit pessimistic and cautious for all those inspired and excited self motivated professionals, and I know that self financing a start-up is the realistic way with tromendous risk and fear, but I just thought I could maybe get some clear insight from all of you who have success in a brick and mortar storefront.
Thank you all - good luck and good night