Money equals business which equals power,
all of which come from character and trust.
J. P. Morgan - Founder J. P. Morgan & Co.
The Financials have got to be the hardest part of all to come up with when everything you need to consider requires alot of math, and a bit of more research.
You have to consider everything from leasing cost, to what every bit of operating expense will be. Then add & subtract profit , and losses of all sorts that when you have to repeatedly figure out the stuff that eventually becomes the bottom line you hope will make an investor smile, and give you the loan without question.
The profit & loss statement... Jeez how many times I have to write about it?
Gross profits are just the part of the dream of what you can do with a $1.00 store. But to be honest when you start doing the numbers and figuring out that $900,000 is the gross profit for just the first year, your eyes go wide open, and your mouth begins to drewl down your chin! That's when the reality set in when I figured in all the other factors of owning the store in the first year.
How I went from $900,00 to 156,358 in one reading of a statement!
My gross profit margin looked great, hell it looked awesome from what I could see! Little Red, and i would be in the big bucks in no time!
Yea right? That's until I started getting the averages for utilities, payroll, freight charges, and all the other stuff that makes it to where you can run the store.
With each cost to run run the darn store the profits began to fade. My hopes of actually being independent of having to work for someone else almost began to fade as well! But there was still hope in the long run.
With net profit as it would be, hey that was not to bad at all. Hey it could help pay for the holes in the wall from when my head connected with the drywall. To own a $1.00 store it takes work, and work you have to be dedicated at if you want to make a profit. Yes there is earnings out there just waiting for a store just like mine but you have to go the distance, walk the line, zig when others zag, and everything in between!
Go for the profit! And all your dreams!
Wounds heal, and so do the wow effect of what it takes. Begin to dream, write it down, bang your head against the wall at times, but remember it can work!
Never stop looking at your dream!
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1 comment:
As a resident of New York City, I can tell you that 99-cent stores are found in almost every neighborhood.
What's the biggest issue? Quality.
A lot of products sold in these stores are very low quality items. Some products are junk. But some products are good values.
The poor quality items are easy to spot. Store owners should find alternatives, even if the alternatives cost must sell for more than a buck.
Steve & Barry's is making big gains selling its goods at low low prices. I don't know about the quality, but something is working for those guys.
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