For the new entrepreneur, starting up or purchasing an existing retail business can be risky because, honestly, the future is pretty unknown. It is impossible to know how the well the business will do in general, if it will be successful in the local area, or what the future will hold. All we can do is plan and strategize.
No one wants to see their business fail, but anyone starting a new retail business has to face that possibility. It’s better to accept that possibility rather than hold on to false hope. If you find yourself in the unfortunate place where your store remains well stocked with items for sale, but the customers aren’t coming in and you’re losing revenue faster than you can earn it, it may be time to take a hard look at whether you need to exit your retail business.
Self-evaluation and the Future
When deciding if you should fight to recover or if it is time to finally move on, there are some questions you should ask yourself:
- “Do I still enjoy getting up and going to work?”
- “Am I still passionate about what I am doing?”
- “Is working negatively affecting my physical or mental health?”
- “Have I been thinking hard about my plans for retirement?”
It may be time to reevaluate your personal goals and decide whether or not your business can help you meet those goals. If you don’t generally look forward to getting up in the morning and opening the store, it is a pretty obvious sign something is wrong.
If you are often tired, feeling overworked, or frequently getting sick, you should assess to see if you are under too much strain because of your business. Perhaps it’s time to have a closing sale and move on. If you’re thinking about retirement, it may be wise to exit your retail business to get the most out of your investment now.
Profit vs. Loss
If you have been in business for a few years or more, it is reasonable to assume that you should be making a profit. Of course, it may be difficult to judge just how much profit you are bringing in during your opening year. After a couple of years, however, if you are making a profit and have the ability to bring home your own paycheck after expenses, you are doing well. If not, and you find yourself struggling to meet budget requirements and are always in the red, it is time to take a more serious look at exiting your retail business. If you find yourself continually adding personal cash to support your business, racking up high credit card debt or are considering taking out a loan just to keep the doors open – stop! There is something terribly wrong.
Supply and Demand
When accounting for your inventory, carefully consider if you are trying to sell products that are still in demand. If sales have dropped dramatically you may have old or outdated product. During the personal computer revolution of the 1980’s and ‘90’s, an abundance of stationery stores saw the writing on the wall and chose to exit the retail business. You should also consider whether you are selling products you personally enjoy, but they are no longer seen as in demand by the majority of consumers. You may be trying to sell something seen too much as a novelty.
If you have added an online store to help boost the sales of your brick-and-mortar store, you may notice that online sales are better than those in the physical store. That is a good indicator that it may be time to streamline to only an online store and close the physical location to cut out the overhead. As online sales have taken over many marketplaces, we see many people turning to online retail only in lieu of exiting their retail businesses completely.
GA Wright Can Help
It can be incredibly hard to close up a shop that you have dedicated part of your life to. It can be even worse if you are having to do so earlier than you thought you would. Unfortunately, sometimes you may have to swallow your pride, especially if you are outspending your income, or are having health problems. Ask yourself, “Is it time to exit my retail business?”
Whether you have made that decision or want help in evaluating it, contact our team here at G.A. Wright. We have decades of experience in almost every type of retail business. We have worked for years helping people potentially meet their bottom line, or with exiting their retail businesses. While some may say, “It could be time to cut your losses,” we say, “Let us help you get the most out of your business through a “Going out of Business Sale.”
We’ve been helping retail business owners like you throughout the US, Canada, and beyond, for decades. Contact GA Wright today and have a member of our team help you analyze what may be best for your business, and your future.