Have you ever thought of starting up a retail business? Whether setting up a convenience store or a car sales pitch before jumping in with both feet you need to carry out some research and cost out a business plan. It may be that you can make a 60% gross profit selling an individual fizzy drink but after all the costs associate with running a business will the business itself make any profit?
This is a list of some of the costs you need to consider when calculating if your new business will make a profit. Each retail sector is different so make sure you talk to people already working in your sector for advice.
Another tip – make sure you have some money to live on while the business is starting up. This always takes longer than you expect so be certain you can afford to pay the mortgage and feed the kids for at least a year if the business doesn’t make a profit.
After all that, and having made a guess at the level of sales, say £7 to £15 per square foot per week in a convenience store, you may decide your new idea isn’t viable. There’s no harm in finding out before starting that a business won’t work, the bigger problem is being overly optimistic and having to close after six months significantly poorer than when you started.