Opening a business is tough. A lot of great companies have started when the economy is down such as GE, Google, Microsoft, and Allstate. Whether times are tough or the economy is going strong, when it comes to a business, you’re only going to stay open as long as your sales exceed your expenses unless you happen to have a pile of cash to burn through. If the latter is the case, please e-mail me and I can help with that :).
My wife and I spoke having a store front the other day. She is interested in becoming a baker specializing in cakes and cupcakes. I hadn’t posted anything about her blog before, but you are welcome to take a look at it. If you take a look at her blog, you can see that she’s gotten pretty darn good at the art of baking and decorating cakes and cupcakes. If we were to make a pro/com list, there would surely be a good list for both, but this article will be focusing on the con portion of the list.
5 Reasons Why You Should NOT have a Store Front
1. Store Fronts are Expensive – This is a no-brainer, and the main reason why I don’t want a store front. Before you make any profit for the month, you have to make, in most cases, at least $1000 (I’m guessing on the rent) and up to $1000’s of dollars a month for nicer locations. This seems backwards to me. It seems silly that people should have to work really hard just to break even, not to mention how hard you have to work to make a few bucks on top of that. When I think of store fronts, I can’t help but think about being a sharecropper and that’s is not a positive image for me.
2. Vacations are gone – My dad had 3 different stores during his tenure as a business man. I always had a lot of fun in the last two stores (I was not born for the first store). The second store sold comics, costumes, and magic tricks. The third store sold sports cards, comics, magic the gathering cards, and Pokemon cards. Both stores were really cool as a little kid and teenager. If there was something I really wanted in there, I could talk to him about a way to work for that item. Looking back on my childhood though, there was one thing missing from our vacations: my father.
3. Time Away from Family – When you are getting a business off the ground, lots of time will be spent on the business. Most people value time with their family. If the business is located away from the home, this is more time spent away from your family. If you are able to keep your business at home, this inherently gives you more time with your family, although probably not much in terms of quality time. However, having the business at home may also allow you to avoid daycare partially or all together.
4. Less Flexibility – Here’s the deal. You have a store and it must be occupied by either yourself or an employee at all times. In the case of a bakery, hours during the week are typical and on Saturday at a minimum is required for potential customers. In addition to less flexibility in terms of time, there is also a lack of flexibility in terms of businesses’ finances. A lot of people are feeling the pain of America’s current financial state. If you have a store, and business goes down, that could certainly put your finances in a crunch. If you worked from home, you have less expenses overall and are more flexible if there is a dip in your business.
5. Added Expense – Rent is not the only cost associated with renting a space. In addition to the utilities such as electricity, cable, gas, there is also the expense of making the space as you see fit. Your landlord is more than likely not going to turn the space into what you desire. For example, my wife is interested in opening a bakery. If we were lucky enough to find a store front with a kitchen included, I think we should consider ourselves lucky. If we find a store front with a kitchen, we will need to make the kitchen to fit to the needs of a bakery. Some additional costs could be if there are repairs needed for the rented space and the cost of any potential employees.
I understand that some businesses have more of a need for a store front than others. For instance, a fast food place might rely on foot traffic for a lot of it’s revenue plus hunger is a pretty urgent need, but an online book retailer might be able to get away with not having a store front (i.e. Amazon).
What do you think about having a store front for your business?
Photo by: Any Jazz65
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