Business experience of opening a store: all kinds of store business optimization and management deta

Chapter 35
[-]. Reasonable use of various expenses

How to Master a Keen Money Sense

The sense of money is a part that operators must master, and it is a very important feeling.The operator must strictly control the company's money.The company's money is not limited to cash, but also includes raw materials, commodities, and equipment, and all of these must be reflected in money.The greater the amount of money a business spends, the more numb people's sense of money becomes.Small bills often appear like rubbish when huge sums of money are spent on a daily basis.If you manipulate a huge amount of cash such as 10 or 100 million every day, it is not surprising that you will become indifferent to [-] or [-].

There was an operator who threw banknotes of 1000 to 2000 yuan in the tavern every day when the company was in a hurry to raise funds.While talking about the difference of 300 million, he threw the company's money like soup.Indeed, for 100 million, 1000 yuan is nothing.Even if you save 1000 yuan that day, it is nothing to the 100 million raised, but if people explore the reasons for the urgency of raising funds, they will definitely consider the risk of borrowing or lending, and cut off the idea of ​​borrowing money.

Sure enough, the operator's company eventually went bankrupt.

As the saying goes, a penny suffocates a hero, and a person who doesn't cherish small money can't do a career.That doesn't mean being stingy, or always being careful with money.It's okay to be a little generous with your own money, but you can't waste a penny of your company's money.

Not a penny is wasted is not limited to cash.Not to mention commodities, even raw materials, fuels, and labor cannot be wasted.Although they do not show the face of money, they are the same as money in the company's business activities.

For things other than money, many people don't have the feeling to look at things from the perspective of money.Therefore, many people value money, but they are constantly wasting goods and raw materials.These people also belong to the money feeling weak type.

for instance.Suppose you lent 1 yuan to your neighbor, but you didn’t pay it back on the agreed date. You were in a bad mood, and you still haven’t paid it back after a long time.So he got angry and said, "From then on, I don't care about that neighbor anymore."

Furthermore, assume that a store has credited 1 yuan of goods to its neighbor.The person who bought the item soon completely forgot about it and didn't pay because he heard "you can pay at any time".The shop next door also forgot about it, and I didn't remember it until it was time to settle accounts.However, it was several months ago, and it was difficult to claim due to face.So, the shopkeeper said: "Oh, forget it!"

The former bristled at the non-repayment of cash, the latter became generous because it was not cash but a commodity.It can be said that this is entirely a matter of feeling. In fact, both suffered a loss of 1 yuan.The latter did not feel so heartbroken because the 1 yuan was not paid out of the treasury.When the owner calculates the loss, it is not 1 yuan, but the purchase price of 6000 yuan!From the sense of money, it is too dull.

It is a keen sense of money that treats commodities as cash equivalent to the marked price. 1 yuan in bad debts for goods must be regarded as 1 yuan in bad debts in cash.Generally, when the payment for goods cannot be recovered, the operator often calculates based on the purchase price and manufacturing cost. This feeling is too naive.If you accept a note of 100 million won, it should feel like you have lent 100 million won in cash.If you have such a feeling, you will not accept the bill so simply.

The same goes for returns.If there is a return of 100 million yuan of goods, it is equivalent to spending 100 million yuan in cash from the company's coffers.This kind of feeling often makes business owners have a deep sense of crisis, and will be more cautious in the face of their own business operations.

How to use start-up funds reasonably
Before any store can open, it must inject a start-up capital, which is actually the initial investment.

The initial investment can generally be divided into two parts: one is all the funds before opening the store, such as the deposit required for renting the store, the security deposit, and the upfront rent, exterior decoration, interior decoration, fixed facilities and personnel recruitment expenses, etc.; It is the expenses required in the operation, such as purchase expenses, opening publicity expenses and so on.

The rent and deposit of the storefront vary greatly in different locations, and the amount will vary with the environment of the storefront, the distance from the downtown area, the influence of various factors such as the structure of the building, the location in a prosperous location, the concentration of passenger flow, and the natural rent. It is very expensive, and in remote locations, the rent will naturally drop. After renting the storefront, the cost of exterior decoration and interior decoration will also vary with different industries, such as high-end stores and popular commodity stores. The cost of decoration is different. According to the current market situation, high-end stores cost about 3000 to 5000 yuan per square meter, and it is also related to the size of the store and the level of decoration standards.In terms of equipment costs, if it is a commodity store, it should have special and supporting equipment dedicated to a certain commodity, reflecting its professional sales. Like a boutique service store, the main equipment includes: display racks, POPs, and window displays for commodities. , air conditioning, lighting and audio equipment, about 3 to 10 yuan.

Now assume that the storefront area opened is 5 square meters, and the rent is 1 yuan per square meter per month.The decoration cost is 3000 yuan per square meter, and the equipment fee is (3-10) million yuan. Then you should have a rough calculation of how much money you should prepare.

At the same time, at least one month's purchase capital and operating working capital should be prepared.Especially when the store is newly opened, various supply channels are newly opened, and the cooperative relationship with the supplier has just been formed, so the discount for the initial purchase will not be very high, and you may not be able to enjoy various purchases. Considering this factor, there must be some leeway in the use of funds.

The introduction of the opening and the marketing activities of the publicity day can be carried out through newspapers with advertisements and leaflets.Various methods need to be evaluated. If you think that everything will be fine as long as you hand out the leaflets to nearby residents, it is tantamount to throwing money in the trash can.In fact, in order to achieve the desired effect, each store needs to screen various customers, find out the target customers, and then deliver targeted information to them, so that the cost is less and the effect is better.

How to use limited funds rationally
When working capital is limited, to maximize profits, it is necessary to accelerate the turnover of funds.Acceleration of capital turnover requires corresponding acceleration of logistics, and various investigations must also keep up.

Generally, customers pay by cash or credit card, especially when paying by credit card, the store should transfer the money in time to speed up the return of funds.

When the working capital is needed, even if it is an account, and the sales start after the purchase, if the period for recovering the payment can be consistent with the period between the purchase and payment, there will be no difficulty in payment; when the period for recovering the sales payment is longer than the purchase payment During the period, during this period of difference, working capital is required.Generally speaking, the shop should have a certain amount of working capital for contingencies.

If there is really no working capital for turnover, but you want to increase the turnover, then you have to shorten the inventory time, advance the time for recovering the sales payment, or extend the payment time for the purchase payment.

In terms of financing, it should be known which commodities have a longer turnover period and which customers or purchasers are more likely to use cash transactions.It is best to make a fund raising table (divided into forecast and actual), so as to avoid the situation of insufficient working capital.

How to make a fund utilization plan
After preparing sufficient funds, first of all, there must be a careful fund utilization plan. Of course, the fund utilization plan may change with the change of the store opening plan. use of funds.In addition, when formulating plans, temporary contingency measures should also be considered.

The fund utilization plan can be divided into three parts: income and expenditure plan, benefit distribution plan, and fund plan.It is worth noting that a large amount of funds may be required before opening a store, and the income and expenditure after opening a store also have a great relationship with the use of funds. Therefore, the operating environment, industry trends, and the company's own operating conditions, etc. When making a funding plan, it is necessary to consider many aspects and carefully draw up the plan.In addition, it is necessary to draw up medium and long-term plans for 5 years or even 10 years after opening the store.

1. Income and expenditure plan
Turnover estimate

The turnover in the first year of opening a store needs to be estimated based on market research, store composition, store site conditions, operating capabilities and comparison with peers.After the next year, it will be estimated based on the growth of income and consumption expenditure, and the annual changes of established stores.If there is an expansion plan in the middle, the estimated turnover should also be included.

income estimate
Gross profit calculation is generally estimated based on gross profit margin and turnover, and other income such as interest income, lease income, etc., are included according to possible occurrences.

Calculation of expenses
According to business needs, it is divided into variable expenses and fixed expenses.Variable expenses are determined according to the ratio of turnover, such as packaging fees, advertising fees, business taxes, etc.Fixed costs include personnel costs, water and electricity costs, postage and telecommunications costs, daily necessities costs and other various management costs, etc. Some of the fixed costs are also related to the level of turnover.The provision for depreciation of fixed assets and the amortization of start-up expenses should be included in operating expenses.

2. Benefit distribution plan
The company's profit distribution, in addition to paying various taxes, can be used to withdraw provident funds according to operational needs, or as dividend distribution for shareholders and employees.

3. Funding plan
Fund plans can be divided into fund use plans and fund allocation plans.

funds use plan
The fund use plan is divided into two parts: the pre-opening plan and the post-opening plan.The planned expenses before opening the store include store rent, decoration costs, hardware equipment and equipment costs, security deposits, investment funds and commodity reserves, etc.The planned expenses after opening the store may include operating capital, commodity purchase fees, loan interest, or various expenses such as expansion and maintenance.

In terms of the use of funds, it is necessary to clearly define the necessary period and amount of each expense.

Fund deployment plan
The capital allocation plan is also divided into the pre-store plan and the post-opening plan.The pre-opening allocation plan is prepared to meet the needs of capital use before opening the store. If it can be properly allocated, it will have a great effect on reducing investment costs.The post-opening allocation plan is based on the business activities, and the remaining funds after deducting operating expenses, depreciation, and various receivable and payable expenses are uniformly allocated in order to use funds flexibly.

How to prepare and use funds is something that every operator should have an in-depth understanding of. As long as he can refer to the above key points and implement it carefully towards the original goal, he will surely be able to successfully complete the goal of opening a store.

How to Calculate the Breakeven Point

1. What is the break-even point

Whether you want to open a store or have already opened a store, calculating an accurate break-even point (hereinafter referred to as break-even point) can help stores effectively promote sales plans and control costs.The so-called break-even point is the turnover corresponding to cost recovery. Only when the monthly turnover exceeds the break-even point, can the store make a profit.In order to avoid losses, the breakeven point is the bottom line of the store's turnover.

But when many people calculate the fixed cost of the break-even point, they often do not include the depreciation of the decoration.If it is a self-owned house or there is no lease period limit, it can be calculated for five years; but if there is a lease period limit, the actual lease period should be used as the amortization period;

However, it is still impossible to accurately estimate the turnover that should be achieved simply by the loss-even point.Stores often only estimate turnover based on cost, while ignoring the consumption power of the local business district, resulting in "wishful thinking" business blind spots.For example, based on the cost calculation, the monthly turnover needs to be 20 yuan to break even. However, if the local business district cannot have the consumption capacity of 20 yuan, it is necessary to do everything possible to reduce the fixed cost and make the breakeven point as possible. Adapt to the actual consumption capacity, otherwise, losses will be inevitable.

2. Calculation of break-even point
Breakeven point = fixed cost ÷ (1 - gross profit margin)

Since there are many kinds of clothing in stores, the estimation of gross profit margin is usually an approximate value based on sales experience.For example, if a commodity with a price of 100 yuan costs 80 yuan, its gross profit rate is 20%.

Example: Mr. Li and three friends jointly opened a tea house. (unit: yuan)

Monthly fixed cost 60 yuan

Utility bill 12 yuan

Salary (3 yuan per partner, no other employees employed) 5000 yuan

Decoration depreciation (decoration fee lease period of 12 months) 17 yuan

A total of 229 yuan

Gross profit margin 50%
损平点为229，000÷（1—50%）=458，000元

Therefore, the monthly turnover of Mr. Li's store must reach at least 458 yuan in order to balance the income and expenditure.

The loss-even point can only estimate the business standard of not losing money. If you want to make more profits, you have to calculate the return on investment.If the annual operating net profit does not reach 85% of the total capital of the store, otherwise, the funds can be invested in other areas to obtain higher returns.

How to estimate payback period

Estimating the break-even point can tell you how much turnover you need to achieve to break even with the cost, and calculating the payback period can estimate how long it will take for the business to "pay back".The payback period can be roughly estimated by dividing the investment amount by the monthly operating net profit.

Payback period [-] Store opening funds ÷ monthly operating net profit

If the opening capital is 400 million yuan, and the monthly operating profit is 80 yuan, then the payback period is 40000000÷800000=5, that is, it takes nearly 5 months to recover the cost, but this item does not consider the time value of cash.

Safety stock = average daily sales volume ÷ order lead time (the safety stock of different commodities must be calculated individually)
If the store can sell an average of 500 items per month, the daily sales volume is 500 ÷ 30 ≈ 17 items;
If the order lead time is one week, its safe stock is 17×7=119 pieces.Therefore, 119 pieces of this product should be ready in the store at any time.

Inventory turnover = monthly turnover ÷ the amount of inventory in the store

如果每月营业56万元，目前库存金额为15万元，则其周转率为560000÷150000=373
The formulas in the table are adapted to general stores, and some stores with special circumstances can choose their own financial indicators.

How to Make a Cash Flow Estimation Statement
With detailed accounts, a correct cash flow forecast can be made.The cash flow forecast table can know when there are idle funds to use, when there will be a shortage of funds and need to be dispatched, and you can really grasp the monthly cash income and expenditure.

Most shopkeepers don't consider the actual cash flow, so they often buy unlimited goods when the business is good, or spend the money earned on purchasing equipment, without considering that they may have to pay a large amount of money next month.Therefore, shopkeepers should make a profit and loss forecast statement and a cash flow forecast statement for the whole year, and use them together to avoid the crisis of insufficient funds and poor turnover.

The profit and loss forecast table presents the profit and loss of the operation, and can only estimate the operating status of each month for the whole year;
The cash flow forecast statement is to estimate and manage the actual cash receipts and payments.

In the profit and loss estimate form, the shop owner can determine the sales revenue, cost of goods sold, fixed cost allocation and other marketing expenses for each month of the next year based on past sales experience, and estimate the monthly operating net profit:
Operating net profit = sales revenue - cost of goods sold - marketing expenses
(End of this chapter)