Have you ever thought about starting your own store? If so, have you ever thought about all the things you might need to have in order to make that dream possible? If you have been half-hearted in your aspirations, you most likely haven’t thought about much beyond selling some stuff and making money, but let’s go through what is truly necessary before you open up that store of yours.
1) Location Location Location – I took a real estate class a few years ago and this was severely pounded into my brain. Now, with every business I see, I think about whether or not it will survive based on its location. Most times, the new, unheard of places plant themselves into a terrible location. They are so ramped up about their idea they think that it can’t lose, but their location of choice puts them into failure mode before they even get started. For instance, I live near a mall that has been half-empty for the last 10 years or so. The foot traffic is horrible and the only reason that the entire mall has survived is because of one or two anchor stores. Many have chosen this location for their first-time business and failed miserably. Before you start the business, be sure you have a great location.
2) Product – If you’re going to make some money, then you’re going to have to sell something. Do you know what product(s) you’re going to offer? Perhaps there is something brand new that is coming to the market that you think will take off. Or, maybe you have some connections to get a popular product for cheap. If you aren’t going to offer a cheap product, then perhaps you are going to offer amazing service to keep your customers coming back for more. Before you start your business. Have a firm grasp on your product.
3) Merchant Service Provider – Many future business owners fail to even think about this necessity in their business. If you are going to sell product and money is going to exchange hands, then you will need a merchant service provider. Do your research in order to find one that will work will with your business model and will allow you to become a success.
4) Cash Flow – The largest challenge with any business is cash flow. Many times, it’s hard for the new owners to scrape up funds in order to get the business started, let alone have a proper cash flow to keep it running. Imagine that you sell all of your products to companies that agree to pay you in 30 days. In that first month, you sell $100,000 in product, but you have $0.00 in payments. You need another $100,000 to replenish your inventory and even more money to pay for your building and your employees. This is why many businesses fail. If you are going to start a company, start with a ridiculous amount of money and learn how to increase cashflow.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.