Brass Tax

Hey Readers,

So, I've had a few responses so far to starting this blog. Its nice, all the encouragement and interest i can generate helps. Thanks everyone! :o) Much Appreciated!

The last week has been spent sitting at home pouring myself over 'Numbers'. Its the MAC iWork version of Microsoft Excel. The iWork package is actually really great to run. It does all that Microsoft Office does but with extra flare and consideration for the user. I will admit that there is a bit of a learning curve as some of the right/left click functions and placement of formatting tools is different. Yet it has made my work thus far run pretty smoothly! If you are thinking of getting started on organizing your personal, personal finance, business, education needs this is a great tool. It comes with pre-formatted forms for budgets, income/balance/cash flow statements, invoices, expense reports, schedules, checklists etc. Its great! :o)

Lovely formatting aside- which i get excited about, probably related to being appointed yearbook editor in high school and actually loving it. I had to get down to brass tax and look at the simplified yet essential costs for starting this business of mine.

Step No. 1=
Take all of the possible real estate locations i have seen and calculate their cost. This is based on getting the square footage for each space and multiplying the dollar value per square foot.

(For example, $80.00 per sq. ft X 1300 sq. ft is a total estimate of $104,000 for that spot)

(I then multiplied $104,000 by 12 months and came up with $1. 248 Million/PER YEAR rent.)

I did this for about 7 of the listed locations I saw with my Real Estate agent, Jordan Karp. The locations were mainly situated in Yorkville, on Bloor, and Yonge (South of Lawrence and North of Eglington).

Step No. 2=
So I'm sitting there looking at these totals and half of the location prices are sitting at over a ! million a year in cost. I began to feel all discouraged that thinking 'there is no way i can afford that'!! I would have to do $2M in sales to afford any of these places and all of my operating costs which go on top of that.

Step No. 3=
Sooo... time to call my dad. He is my mentor/industry expert/reality check and occasional slap on the wrist. I was relieved to be informed that the initial $104,000 is a YEARLY estimate for the space. You don't have to again multiply that sum by 12 months. The initial $104,000 must get DIVIDED by 12 months to get your monthly rent. RELIEF!! So note to anyone don't jump to conclusions before you know all the facts! Or when in doubt ask questions.

Anyways this resulted in a far lower rent cost which lead to me calculate what i would have to sell in order to cover costs and make profit.

Step No. 4=
Do an Assortment plan. This is basically deciding how many products to sell and the number of units, at what retail price. I estimated possible Retail price points for each of the item and came up with an inventory valuation. Once i had this is acted as a monthly 'sales' value. I did this assortment plan by thinking critically about how many items of each category (earrings, necklaces etc.) I would have on the floor based on a basic floor layout.

Step No. 5=
Time to pull these together. Once you know your Revenues and Basic Costs you can put together an pro forma income statement. That means a prediction or future financial position. It is an estimate but also a very practical exercise in comprehending what I have to make $wise in order to cover all costs of running a business. While there are bound to be hidden costs that appear later this is just a good way to see if your business idea is feasible.

I know this may seem like dry content but the point here is that business is about both the fun and creative as well as the practical and methodical. I think that jobs are like that. You can't possibly love every element of it. Looking at the bigger picture is what gets you through the dull areas. It is all an inter-related process of necessary steps. It sometimes takes all your energy but you just have to buckle down sometimes! If its not in the cards u cant win the hand right. Same thing for business. If the numbers don't make sense the ultimate goal of PROFIT isn't possible. ... Passion and Profit the essential P's of a successful business!

Anyways, i know for some of you this type of post isn't up your alley so i promise the next post will be on the lighter side. A little quote to liven the mood: " One should either be a work of art, or wear a work of art." - Oscar Wilde

Peace, Love, Roam, Treasure!
- Linds

Inception, thoughts and First Post

Hey There Readers!

I've decided to start this blog in order to document the process of opening a small business. Thats the coles notes idea. But its all that and more- a labour of love.

I am a young 20 something women living in Toronto. I went to school at Ryerson University. After a long 6 years in university i finally crossed the threshold to "adult professional". Weilding a BComm in Retail management with a minor in Entrepreneurship. That moment of knowing no more midterms, exams, group projects and presentations leaves one wondering what will i do with this life. What are my aspirations, goals and dreams.

Entrepreneurship teaches to mix those goals (once compiled) with ones trained skills and aptitudes; all with a peppering of adversity for risk taking. Alas, such teachings have inspired me to pursue melding my passion, love aka. addiction to jewellery with my learned skills of opening a small business. A STORE WAS BORN!

I foresee it will be a simply devine jewellery/accessories boutique somewhere in Toronto. Via the aid of a well to do investor and the advice from friends, family and professional mentors. That being said I plan to open doors in Toronto September 1st 2010. That is with fingers crossed- that all goes to plan.

The main idea behind this blog is to document the evolution of this process. The trials, tribulations, failures and ultimate successes. To think in an open forum and hopefully recieve support, advice and input from thoes on the journey with me. The next blog will update you as to what i have done thus far- as it is the 3rd week of February! Eeek!

I hope that this is an exciting enough introduction for you. To entice you like bees to honey to read and comment along the way as i breathe life into my goal, brand and dream! Keep you posted my loves.

Wishing you and Team Canada all the best in the quest for hockey gold. We all have our dreams which keep us afloat and moving foreward. Taking us to new places and letting our imaginations run wild with the possibilities of tomorrow.

But, as a true entrepreneur it is important to always remeber that no matter the outcome, while at times great success.... "Failure is the fire that tempers the Steel of our successes".

Write soon! xo