Haven't posted on here in a while but here it goes again.
My wife and I are 23yr old entrepreneurs.
My passion is real estate selling/investing. The wife hates dealing with the lack of structure, the stress, and chaos of being a realtor.
My dad handed off a failing Brokerage that he opened in 2008 before the bubble burst. Since taking control we have cut cost dramatically. The real estate business is about as streamlined as humanly possible.
During the process of cutting cost we eliminated a 120K annual lease (WTF he was thinking I don't know) and purchased a strip mall that is now cash flowing approximately 36K per year. (It was easy going behind my dad and cutting cost lol)
The real estate office is just paying it's way and allowing me to retain 100% of my commission, and find great investment opportunities. (Not enough money to pay another salary)
When we first purchased our mall, the previous owner was doing a horrible job managing it. (50% vacant)
We didn't figure it would fill up quickly so my wife decided to open a consignment shop in one of the vacant units.
Going into it there were known CONS
1) Small space (800 sq/ft)
2) Not a tremendous amount of traffic (more service oriented than retail)
3) No way to estimate demand
The PROS were obvious
1) No binding lease
2) Little startup cost
3) Brought some life to the building (People don't want to lease in a dead mall)
6 Months into the Consignment Venture and we are at a cross road.
1) Building is now at max capacity and the joining tenant is wanting to expand her salon.
2) The store has been well received, but the revenue just isn't there in our current location.
3) The store is just too small. We need at least 1500 sq/ft
We are either going to shut the door and lease the space to the tenant next door or go all out and open up in one of the seldom available spaces in the Mega mall.
The store in it's current location usually has sales averaging from $150-300 per day. Profit is 50% (Not counting lease 650month, utilities, phone, tags etc)..
In other words it isn't making crap today. My wife is basically working for sub minimum wage when all things are considered. But she likes the work and wants to succeed, the money is a goal, but not a necessity at this time.
Here are the numbers on the space we are looking at...
$2,000 per month including utilities
Due to mall policy we will have to be open 7days a week 10-9
At least one worker will have to be hired to work afternoons (5-9) 4hr x 8= 32x30=660 per month.
We will be looking at 3K per month in fixed cost. My wife would like to make 3,000 per month for her time.
Gross income would need to be about 15K per month. I would say that is about minimum considering my wife isn't going to want to work 7 days a week for the rest of her life. (more help will be needed). 20K would probably be a long term goal.
That works out to 500 bucks a day in total sales. It seems that by doubling the store space, doubling the hours of operation, and quadrupling the foot traffic that this would be a obtainable goal..
It's just a bit of gamble being tied down to a lease (Even though it is only 6 months).
It just seems like this may be our only opportunity to try this business venture for real. Space in the mall doesn't open up often, and we already have a very devoted following of customers..
Just looking for some pointers from people who have worked in the mall retail scene, or who have been in the consignment business... Also just wanted to get it all out of my head and onto paper.....
Thanks for any guidance, support, or constructive criticisim!