As you’ve seen from my previous posts, I like numbers. This is weird considering math was my worst subject ever. Nevertheless – our lives are constantly being run by numbers in one way shape or form. So as I was walking around a local mall the other day I saw the opportunity of a lifetime. And there was a contact number to go with it.
“This could be your little store!” said the sign. In many malls you’ll find kiosks that are in the middle of the walkways aside from the full sized retail stores. Another way for the mall to get more money for its space. Smart, in my opinion. And there are always lots of different options at these small kiosks. Hand made jewelry, cell phone cases and accessories, body mod jewelry, hair products, toys, hand bags and so on.
Now, being a business owner I was curious – what would the cost be to own my own little store in Coquitlam Center? So I called the mall admin number that was on the sign.
A polite woman answered and advised me that to rent that kiosk I would have to pay as such: Oh – this is a 10×10 kiosk by the way. My computer corner desk is a bit smaller than these.
January – August: $1,000.00
August – November: $650.00
My jaw almost hit the floor. And the prices could go up from there depending on where in the mall you are. In areas near the center court where there was more foot traffic these prices could go up!
So let look at a year in business for My Little Store.
$1,000.00 x 4 weeks = $4,000.00 x 7 months = $28,000.00
$650.00 x 4 weeks = $2,600.00 x 4 months = $10,400.00
$2000.00 x 4 weeks = $8,000.00
Total Rent costs = $46,400.00
Add a business licence to operate. Add insurance (might not be necessary since it could be included with the rent/lease). Add theft budget. Add purchase cost of merchandise.
As if the lease/rent wasn’t enough – if you want to have a bit of time away to tend to other businesses or to be with your family – you would have to hire an employee!
Retail generally will be at minimum wage. $10.25/hr x 20 hrs/week = $205.00 x 4 weeks = $820.00/mo if the employee is part time. If full time: $10.25/hr x 40 hrs/week = $410.00 x 4 weeks = $1,640.00/mo.
So over the course of a year your employee will cost you $9,840 if they are part time. If they are full time they will cost you $19,680.00.
So with the numbers we can confirm that this business will cost us at minimum either $56,240.00 (PT Employee) or $66,080.00. And we know that with business licence stuff and merchandise purchases etc these costs will be going up. Holy crow!!! “My Little Store” has a HUGE frigging cost!
And guess what….there’s no guarantee that this business will be profitable. In fact most business’ fail within the first year if not first five years! And do those business owners get their money back? Of course they don’t! They have to cut their losses and liquidate if they don’t make it. Do I see a lot of negative blogs about how business ownership is a scam when so many people don’t make it? When so many people and places go out of business? Do people cry that the system scammed them? They might blame the failure on the economy or bad luck or some other such thing. But aside from that, its simply accepted that this is the way it is. No big deal, right?
I pay something like $75.00 for my IBOAI and business licence.
$49.95/mo pays for my own customizable website. Maintenance and upkeep are included. It links directly with my manufacturer and service provider. For which I do not pay a cent for my merchandise. Unless its for my own personal use or for demonstration purposes.
$36.95/mo pays for my own toll free contact number. Its a free call to me from anywhere in North America. Its my fax service, dedicated business email and voice messaging service used to stay in constant communication with my organization and my coaches. Everything in one place keeps things simple and the many features make it useful to run my business on a daily basis.
$25.00/mo pays for weekly training, education and motivation that is in direct relation to my business and my industry so that myself and my organization can get uplifted and motivated and educated. And they can do so without me even being present.
$49.95 x 12 mos = $599.40/yr
$36.95 x 12 mos = $443.40/yr
$25.00 x 12 mos – $300.00/yr
Business Licence – $75.00/yr
Total Annual Cost – $1417.80
There are other costs for functions etc but at this point which business seems more affordable? “My Little Store” that can fit only a few products or a large amount of tiny ones that have a small markup potential that costs me more than my current yearly income just to run? Or my online mall that has access to over 450 products that I, and almost everyone uses on a daily basis that can cover its own cost?
While the sign was cute, I think I’ll stick with what I got. Thanks anyway for the opportunity Coquitlam Center!