Reasons (Not) To Set Up Retail Business Premises This Year
If you were presented with only the following two options and you had to choose one of them, which one would you choose?
OFFLINE TRADING – If trading offline is your intention, you simply cannot just concentrate on the building premises alone as that’s just the start of it. Before acquiring retail business premises you’ve got to give consideration to an extensive list of other important issues…
Rent Rates Insurances Lighting Display Stands Shop-Fitting Flooring Cleaning Contracts Maintenance Contracts Security Contracts Staffing Health & Safety Fire Prevention Fire Fighting Equipment Fire Alert Devices Anti-Theft Alarms Theft Prevention After-Hours Alarms Communications Devices; telephones (landline & mobile) Computer Systems Utilities Staff Training Facilities Point-Of-Sale Equipment Bags & Wraps…
…and that’s just the beginning as we haven’t even got around to the subject of your actual stock, yet!
Also, with business premises, you’re guaranteed that for each and every month you’re in business you’re going to be paying out two sets of bills;
Business Premises Expenses; electricity bills, water bill, gas bill, rates, rent, insurance, etc. AND your regular Household Premises Expenses; electricity bills, water bill, gas bill, rates, rent, insurance, etc.
Before the true costs of ‘retail’ premises can be fully realised, a great deal of small businesses go under simply because the owners have allowed themselves to fall heavily in love with the ‘idea’ of owning business premises without taking into account all the ‘hidden’ expenditures involved. To tell the truth, it might make far more financial sense to invest in a second home and here’s why…
Open or Closed?
Let’s say you operate a retail store that opens its doors from 9am to 6pm each day, 7 days a week. At 9 hours per day, that’s a maximum trading time of 63 hours per week or…
…3276 hours per year.
What this really means is that your store is closed for 15 hours per day, 105 hrs per week or…
…5460 hours per year.
You’re paying one whole year’s rent, rates, insurances, wages, etc, for a store that’s closed for over 227 days per year (not including calendar holidays). That’s two thirds of the year! Does this make economic sense? At least you get the choice of using your second home 24 hours a day!
ONLINE TRADING – If the idea of online trading sounds a little more ‘risk-free’ to you, you’ll be happy to know that with online-based income projects you rarely have to experience the same staff, premises, stock or insurance-related issues as you would with a regular ‘bricks-and-mortar’ business.
Open All Hours
With an online business you’re operating 24 hours per day – so you’re not only minimizing your initial set up outlay, you’re also maximising your trading time. Do the math – less expenses and more exposure leads to greater earning potential.
Your ongoing business mission? To minimize your outlay in ALL areas, maximize your trading time and promote widespread awareness of your offers. In future articles, you’ll hear real-life examples of ‘WebCrafters’, (as I like to call them), who regularly use their web presence to save time, money and effort whilst continuinally increasing their business revenue through automation.