Offline Business – The True Cost

When setting up an ‘offline’ business there’s usually the question of acquiring premises. However, you simply cannot afford to concentrate on the acquisition of premises alone as this is just one single component when it comes to setting up a ‘bricks and mortar’ business.

In order to establish a ‘bricks and mortar’ business it is necessary to give serious consideration to an extensive list of other important components…

Cost of setting up an offline business

* Rent
* Rates
* Insurances
* Lighting
* Display Stands
* Shop-Fitting
* Flooring
* Cleaning Contracts
* Maintenance Contracts
* Security Contracts
* Staffing
* Health & Safety
* Fire Fighting Equipment
* Fire Alert Devices
* Anti-Theft Devices
* After-Hours Intrusion Alerts
* Communications Devices; telephones (landline & mobile)
* Computer Equipment
* Utilities
* Staff Training
* Rest Room Facilities
* Point-Of-Sale Equipment
* Bags & Wraps
* Storage Space

…and we haven’t got around to the subject of your actual product yet! Wow, that’s a lot of stuff.

Oh, and with each item on that list comes official paperwork; receipts, requests, returns, payroll, sick leave, injury at work, health and safety, insurances, contracts, utility bills, etc, etc.

It is likely that a business owner will handle more paperwork in his first year in business than he handled in his last five years in school.

Cost of keeping your premises open

Now that the shopfitters have gone, the next thing to consider is this…

…For each and every month you’re in business, you’ll be wholly responsible for managing two sets of regular outgoings…

1.    Business Running Costs – utilities, rates, rent, insurance, etc.
2.    Household Running Costs – utilities, rates, rent, insurance, etc.

Before the true cost of setting up and running an offline business is fully realized, a high number of small businesses go under simply because the owners allowed themselves to fall heavily in love with the ‘idea’ of owning business premises without taking into account the true ‘hidden’ costs involved.

It would probably make far more financial sense to invest in a second home than acquire business premises (which may not be necessary) and here’s why…

‘Actual’ trading hours

Let’s say you open the doors to your offline business from 9am to 6pm each day. At 9 hours per day, 7 days a week, your business has a maximum trading time of 63 hours per week or 3276 hours per year.

Now let’s look at this another way…

Your premises are closed for 15 hours per day, 7 days per week, which is 105 hrs per week or 5460 hours per year.

This means you’re paying one whole year’s rent, rates, insurances, wages, utilities, etc, for premises which are closed for over 227 days per year (not including calendar holidays).

That’s about two thirds of the year! At least with a second home, you have the freedom to make full use of it… 24 hours a day.

You may be surprised to learn that with an online business (IBIS) you can dramatically increase your trading hours by over ten thousand per cent while simultaneously eliminating issues usually associated with operating an ‘offline’ business. i.e. staffing, premises, stock or insurance-related issues.

Click the following link to read… Online Business – The Advantages