I had a great visit with a friend of mine the other day, I’ve told you about her before, she is a most;y single mom who has taken a “hobby” and turned it into a 6 figure income in just a few years. Just a few years and LOTS of hard work. So, we were talking and she said “I’m thinking of buying a new store.”
Now I’ve known Kay longer than I’ve known most other folks in my life, and I know when she said “I’m thinking of doing…” then she has already looked at it 6 ways from Sunday, the numbers all add up, but she’s looking for ANY reason at ALL on why this would be a bad idea. Knowing shes a top notch business woman, I didn’t have to ask about the numbers, but she offered them to me, here a brief sketch: Its been in business about 10 years, the books show that on a “part time basis” (5 hours a day, 5 days a week), with the claim of being “THE CHEAPEST PLACE IN TOWN” and she’s still posting mid 5 figures that there is a lot of potential! I would agree with that 100%
So I asked, if Kay would take over the store for the first year, and allow her assistant to run the one she currently has? “Well not really, but the entire existing staff has to go.” OK now that could be an issue, see the store is currently 3 counties away and she knows already she’s going to have to do a massive hire and train process. That can be very expensive, but again, she knows that part. In most businesses you average out ‘X’ number of years Gross and the retail cost for the business is going to be 10 times that. So in this case if the store is grossing $50,000 a year (that is pretty gross isn’t it?) than in many cases it could be worth $500,000, but not in this case.
WHOA its WHAT TIME? Oy, Mickey says its time to GO!
Tune in next time to see what I suggested she do!
Keep on writing, and NEVER stop reading!