QUESTION.
I wanted to ask you about the start up cost of a retail clothing store. Is it necessary to hire an accountant during start up? Is it better to take a loan that can cover 6 months of my living expenses? Or is it better to borrow 12 months? I’ll be a first time business owner. Is it wise to start off in a new building built from the ground up?
ANSWER.
So you want to start a retail business. I’m not a fan of starting retail businesses. They are capital intensive and seasonal in activity and sales. But if that is what you want to do – then so be it. I recommend you try to start some sort of a service business. The start up costs are lower, and the profits are generally higher.
In either case, you need to do market research and put together a sound written business plan. See guides 8 and 6 at www.jlippin.com/guidemania.html.
Look through the online table of contents for some of the books on the above lists. Consider contacting your local SCORE chapter and discussing your plans with two volunteer SCORE counselors.
You don’t need to hire an accountant. You need to learn the basics of accounting yourself. See Guide #1 at www.jlippin.com/guidemania.html.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceto @ aol.com
www.scoreprinceton.org
www.jlippin.com
