The retail industry is an exciting and ever-changing one. Trends for products can change in the blink of the eye. Tickle Me Elmo, the cabbage patch dolls and beanie babies are all examples of what a trend in retail can create. There is a mass appeal for shopping and consuming products. It is important to really understand your business before embarking on such an adventure.
Benefits Of Owning A Retail Store
– You can easily hold sales or issue coupons to drive sales.
– No accounts payable or receivable.
– Freedom to have the type of store you want and sell what you want.
– You can surround yourself with products that you like and are interested in.
Potential Bumps In The Road
– Large inventory overhead.
– Location and upkeep of the space.
– Inconsistent monthly sales.
– Returned and damaged merchandise.
The total sales in this industry in 2011 were $4.7 trillion in the US. This represents an 8% increase over 2010 total retail sales. The retail industry employs 14.5 million people. It can be a very successful career.
The hospitality industry is different, because in many cases you sell a service or an experience. An example of a service would be owning a hair salon or spa. An example of an experience would be a bed and breakfast or a gym. A tangible product doesn’t change hands, but a transaction still takes place. Although different from retail, these industries are often combined. A hair salon may also sell shampoo as a retail product or the hotel may sell snacks and soda pop.
The team of financial advisers at Numerico will add to your success by taking into account all the aspects of owning a profitable business. We can aid experienced owners in running their business. We are also prepared to be a sounding board for someone thinking about opening a retail or hospitality business. Each entrepreneur and company are different and we pride ourselves on the personal attention you need to reach your goals.