Welcome back guys! Hope your Spring is treating you well J Now I want to continue on with our topic of opening up a successful fashion store, the next area I want to cover is your Return on Investment. You really do need to have a good estimate of your return, to make sure the money you put in your store is going to come back to you at some point, and hopefully with new friends!
Break-Even Analysis is a simple tool to estimate if your business idea will break even or not and how many units you have to sell before this happens. It is also used as a tool to tell you the price you need to sell your product or service for.
At Break-even point, you have covered all of your expenses, but no profit has yet been made, or when your total sales equal total expenses.
Reasons for opening up your own little shop are quite appealing – fewer people these days are satisfied with working for large companies to be rewarded only by salary and a pension. A lot of people are seeking something that is more fulfilling, more personal, or a higher calling. And you love that little clothing store on your local high street, it’s inviting, the people are friendly, and they’re helpful, maybe you should give it a go for yourself!