Re: [Hobby] Helping to open a gaming store

In article <BN_wf.7647$eR.4464@fed1read03>, smcdaniel1@xxxxxxx says...
>
> "Jim M" <hnjcomics@xxxxxxxxx> wrote in message
> news:MPG.1e2d6f6ec399bc8e98a6ba@xxxxxxxxxxxxxxxxxxxxxxxxxx
> > In article <1136877309.715149.135150@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
> > donovan_borman@xxxxxxxxx says...
> >> Hello again all!
> >>
> >> Need some help here.
> >>
> >
> > Don't forget the initial office supplies, and stock up initial cleaning
> > supplies (nothing worse then having a spilled cola and discovering you
> > haven't purchased a mop yet.
>
> Now that is real world advice.
> I guarantee you that if Donovan goes ahead with the business there WILL be a
> mop in the store day one.
>
>
>
One of the biggest things for him to remember though is not to listen to
the naysayers. I read last night a comment that he wouldn't be able to
earn $60K a year with a game store and that is utter horse ***. If he
can sell $600+ a day (six days a week) it works out to about 180K a year.

Figure in cost of doing busines at about 85% of that (remember he should
pay himself as a part of his CODB) it leaves him an additional $27K for
such things as dividends or growth potential. Now assuming he pays
himself $16 an hour (not unreasonable for a store owner/manager to make
that amount. That means he has already earned $33K add a $27K bonus to
that and damn, looks like $60K a year to my tired old eyes.

Yeah $600 a day seems like a lot of money for a small store, but if the
store is well run it is a reasonable amount to expect after the first few
years. Hell my store had at least two $1K days every week, if it weren't
for my piss poor management of money (I have learned a whole lot since
then) I would probably still have the store and be turning 300K or more
every year...

There are few things that he will need to remember on a weekly basis, the
first is that when you sell product you may not be able to replace it
right away. This is because your static bills (rent, water, electric,
garbage, phone, wages, etc...) must be payed first add all of these bills
up and figure what they cost you per week. The good news is that right
now all of these things are tax deductible. Now figure your total sales
minus sales tax, subtract your static cost from this figure. If you are
in the plus column you can reorder up to the amount in the plus column,
if you are in the minus colomn you may not order. Or to put it in a
formulae

(Total Sales-sales tax)-(static cost)=Reorder potential.

Of the Reorder Portential items consider the amount of time taken to sell
a particular item before reordering it. If it took you a year to sell
place that on a list of items for special order only. If you turned it in
a few weeks then it is safe to reorder. Once you have reordered what you
intend to restock if any money is left over you may consider ordering new
product. If you still have money left over then congratulations you have
just earned an honest to god profit for the week.

The main thing is NEVER order more product then you have money in your
Reorder potential colomn.
--
Jim M

"Look alive. Here comes a buzzard." -- Walt Kelly (Pogo)
"The only game I like to play is Old Maid - provided she's not too old."
-- Groucho Marx

http://jimac.tripod.com
.

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