Retailers Forum Magazine Sept. 2021 EMAG

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FORUM WORKSHOP forumworkshop As part of your business plan, your accountant can take these numbers and work up an annual expense budget for your business. The budget entails much more than dividing your total expenses for the first year by 12, and using that figure as your average monthly expenses. There are other expenses not directly reflected in the physical operation of the store, such as interest payments on any debts you assume to finance your business. And your expenses should grow as your as your business expands. An accountant with retail experience should be able to tell you what to expect in terms of escalating costs and how it will impact sales. His expertise should also help you project the store’s profitability as you look ahead. Projecting income, based on your sales expectations, poses the trickiest aspect of the store’s budget. In some retail categories market research exists to demonstrate the profitability of average retailers, based on store size and the amount of time in business. Your accountant may also have experience with a store similar to yours. But there’s no typical store; your location, store concept, and you are all unique. Until you’ve been in business for at least a year, any projections you make are, at best, guesses. Be conservative in any assumptions you make about sales when starting out, but not overly conservative. It’s safe to assume the store will begin covering its expenses within the first year, a year and a half at the outset, or the store concept is flawed. continued in next issue ... Incorporate a Business or Form an LLC - FAST Corpnet will prepare and file your documents Our informative website gives you great info on deciding between the various options. Fast • Reliable • inexpensive We can set up your corp. in any state. www.KwikInc.com Page 78 SEPTEMBER <strong>2021</strong> | RETAILERS FORUM MAGAZINE
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Retailers Forum Magazine Sept. 2021 EMAG

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