Are you built for profit?
July 20th, 2010[Note: this post is for the small businesses out there; one man bands, contractors, or local store.)
We all know that retail space that can’t hold a business, it’s a clothing shop, it’s a book shop then it’s a bakery.
No matter what nothing seems to stick.
There are many reasons for it but the key one I ask myself, are they built for profit?
I pondered this as I saw a car yard selling cars for $1990 and $2660 – a wide range of low priced cars. How can they possibly make a sustainable profit on that? Sure if they get the cars and put a 100% markup on each of them margins seem good. Yet they still need volume to sustain a business, 2 cars a week would maybe cover the living costs of the owner. What if they can’t reach that?
Sure enough, I drive past a few weeks later, no stock shifted, I don’t think they will be around for long. Have you actually looked at your model, are you built for profit? Or are you just subsidising your time…
Tags: small business, time, value
This entry was posted on Tuesday, July 20th, 2010 at 11:16 pm. 