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- #61
biophase
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It's not that simple.
BTW, this was our error in logic, too.
If your sales go down, and expenses go UP, and your selling price goes DOWN, what's left?
NOTHING.
I think this is why online stores with little inventory are ideal for this play, especially if you are experienced.
The biggest downside is that it dwindles down to nothing. No cash flow. The upside of that downside is that if it ever got to that point, you could just shutdown the store and walkaway. Take your remaining inventory and blow it out on Ebay. This is assuming you didn't take a $100k loan to purchase the store.
In reality, even as business declines, you can be very dynamic with your choices in the online world vs. brick and mortar. Your expenses are minimal so you can really float your store forever. I had some "failure" stores that I didn't get a sh!t about, but they cost me less than $3 a month to run. So I left them up and they still made around $200 a month. It's hard to just take them off line.
Your store will have value even if it's making no money. If your store was making $100k a year and went to zero, somebody will want your domain and probably your store software for a decent amount. They are paying for your domain's SEO, your wholesale contacts at this point.
Based on my experience, if you get your store up and running and are not on one of those hosted $99/mo programs, then the store should never ever run a negative month. I don't know how this would ever happen.
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