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

Chapter 5 Business Classic II: Skills in Raising Funds for Opening a Store (1)
[-]. The investment budget before opening the store

What investment is required to open a store

Before opening a store, a certain amount of start-up funds must be raised as the economic basis for realizing the scope of business.For a store opened as a sole proprietorship, the laws of our country have no restrictions on its registered capital, while for a store that is a company, the law stipulates the minimum amount of its registered capital.Once the declaration is approved, the registered capital becomes the legitimate rights and interests of investors and is protected by law.

The funds needed to open a store are mainly inventory investment, account receivable investment, fixed assets, negative cash flow before reaching the operating profit and loss balance point, and accidental loss fund.

1 inventory investment
It is usually determined by projected annual sales and inventory turnover.

2 Accounts Receivable Investment
Accounts receivable is money owed by customers for purchases.

3 fixed assets
This part of the funds is mainly used for the capital needs of buildings, land, and equipment. The specific amount depends on whether these buildings and equipment are purchased or leased.The total cost can usually be estimated based on market prices.

4 Expected Negative Cash Flow

It is rare for a new store to achieve an operating breakeven in the first place.Generally, it will take 6-8 months to be profitable.New stores here will encounter negative cash flow, which requires investment to achieve balance of payments.

5 Casualty Loss Funds
When planning funding sources for a new store, it is inevitable that there will be unexpected expenses.In order to meet these unexpected expenses, the new store needs to have a reserve fund that can be used.The accidental loss fund accounts for about 15-20% of the total capital required.The less the windfall fund, the greater the risk of bankruptcy if the business does worse than expected.On the other hand, if there are too many accidental loss funds, the company will have too much funds idle, and the capital efficiency will be greatly reduced, which is not conducive to the development of new stores.

How to determine the financing scale
The founders of new stores can use their own funds, or obtain start-up funds by raising funds or borrowing from banks and financial institutions.The amount of this fund depends on the size and type of the new store. Here we introduce a method to determine the financing scale of the new store, that is, the actual accounting method.It is a method of calculating the amount of funds that need to be raised according to the actual investment needs when the investment needs of the new store are basically determined.It is characterized by simplicity and precision, but requires detailed and reliable basic information.Its general steps have the following five steps:

Determine the size and mix of investments.

Calculate the total amount of funds that need to be raised.The amount of investment in new stores here is generally not equal to the amount of financing for new stores, because there may be funds that have been raised in the current period of investment but have been raised in the previous period, and projects that will be invested in the next period but need to be raised in this period.Therefore, the founder of a new store can calculate the total amount of funds raised through the method of summarizing items.

Calculate the amount of internal financing for the new store, that is, calculate the amount that can be provided in the current period based on the source of internal funds for the new store.

To determine the financing scale, subtract the internal financing amount of the new store from the total financing amount to determine the financing scale of the new store.

Revised according to the evaluation criteria for new store financing.

How to Estimate Investment in Fixed Equipment
After deciding to open a store to develop your own business, you need to estimate the amount of money you need to invest in fixed equipment when opening a store.After all, the most important thing in starting a business is to understand and solve the needs of financial expenses, which is the key to determining future success or failure.Generally, the investment required for a store mainly includes:
1 upholstery
In terms of store decoration design, the store owner’s first consideration is positioning and the main customer base; at present, the store’s business area must reach at least 30 square meters to meet the needs of consumers to purchase goods. Therefore, in terms of decoration, the color of the store must meet the needs of customers psychology.

2 air conditioners
The air-conditioning allows customers to enjoy a cool feeling after entering the store, and encourages customers to stay in the store for a longer time to buy more products.At present, there are two types of air conditioners used in shops: suspension type and vertical type.The advantage of the suspended air conditioner is that it does not take up space, which increases the number of shelves in the store, increases the number of products that can be displayed, and increases the turnover; the disadvantage is that the coldness is poor and the price is high.The advantage of the upright air conditioner is that it is colder and the price is cheaper; the disadvantage is that it takes up space. If the store area is not large, it will affect the display of products and increase the turnover.Based on a business area of ​​30 square meters, about 8 tons of air-conditioning is required for the suspended type, and about 75 tons of air-conditioning for the vertical type.

3 water and electricity
Among all the projects in the store, the most complicated and the most demanding project quality is hydropower.During the construction period, from wiring, pulling pipes to installing switch boxes, from power transmission and lighting, water supply and drainage to fire safety, the quality of all processes and materials must be strictly required, so that the entire store can meet safety, aesthetics and practical standards .

4 shelves
The function of the shelf is to display the goods, so that consumers can easily find the goods they need in the store.The shelves are composed of single-sided racks, double-sided racks, shed boards, front guards, side guards, back nets, hooks, etc., and are divided into 135 cm and 180 cm.

5 signs
The brightness and tone of the signboard are the main reasons for customers to visit the store.Therefore, when designing and installing signboards, the color and luster must be acceptable to consumers, the location should be obvious, and the brightness should be bright.

6 cash register

Generally, a store needs to purchase 2 sets, in case one of them breaks down, the other one can still operate.

The above are investment items for hardware and equipment.In addition, there are some items that are not included, such as: laying floor tiles, removing walls, installing floor-to-ceiling doors and windows, etc.In addition to the equipment mentioned above, if the owner adds other equipment, the cost will be included in the calculation.

How to Estimate Management Fees
As the competition becomes more and more fierce, the turnover of general shops increases slowly, but the management expenses increase year by year. In this case, the shop owner must strictly control the management expenses, so as not to reduce the profit of the shop due to the increase in expenses. Resulting in prolonged investment cost recovery time.

1. Fixed Fee
Management costs
Such as salaries, allowances, overtime pay, funds, severance reserves, benefits, etc.

Equipment cost
Such as decoration costs, equipment depreciation, insurance premiums, rent, etc.

maintenance costs
Such as water and electricity bills, office expenses, miscellaneous expenses, etc.

2. Variable costs
Variable costs include maintenance costs, advertising costs, packaging costs, disk damage, sales tax, etc.

3. Example of management cost analysis
To what extent should the store's management expenses be controlled to be reasonable?The following is a profit and loss analysis of a store: Assuming that the monthly turnover of the store is 180 million yuan, and the gross profit is 25%, the ratio of its total operating expenses to total sales must be controlled within 18%.details as follows:
Decoration depreciation
Calculated on the basis of an investment of 36 yuan divided into 5 years, 06 yuan will be apportioned every month, accounting for 033% of the total sales;

equipment depreciation
Based on the investment of 1685 million yuan divided into five years, 5 yuan must be allocated every month, accounting for 22% of the total sales;

staff salary
About 24 people are needed for 7-hour operation, and the cost is controlled within 12 yuan, accounting for 666% of the total sales;

Utilities

Monthly control within 3 yuan, accounting for 166% of total sales;

rent
The rent is within 97 yuan, accounting for 538% of the total sales;

Maintenance fees

The maintenance fee is 05 yuan, accounting for 027% of the total sales;

Business tax

Business tax of 23 yuan, accounting for 127% of total sales;

Disk loss
Disk loss of 09 yuan, accounting for 05% of total sales;

Miscellaneous expenses
Miscellaneous expenses 1 yuan, accounting for 06% of total sales;

postage

The postage and telecommunications fee is 02 yuan, accounting for 011% of the total sales.

The above total expenses include fixed expenses and variable expenses. As long as the total expenses are controlled within 18%, there will be considerable profits.In addition, management control is implemented by monthly management analysis, and the shop owner should consider the following 5 basic principles.

1. The total salaries of shop assistants shall not exceed half of the total expenses;
2 Personnel expenses account for less than 7% of total sales;

3 The ratio of total expenses to total sales should be within 18%;

4 The proportion of fixed expenses to the total expenses should be 85%:

5 The proportion of variable expenses to the total expenses should be 15%.

Store operation follows the above five principles, and it will be able to obtain considerable benefits.

How to Do a Profit and Loss Analysis
When an operator opens a store, the most concerned question is how much performance must be achieved to balance the profit and loss after investing funds, and what is the operating safety rate to be considered safe?First of all, it is necessary to divide the operating expenses of the store into fixed expenses and variable expenses. The fixed expenses have nothing to do with the increase or decrease of the turnover. .The variable cost changes with the increase or decrease of the turnover, and the variable cost is directly proportional to the increase or decrease of the turnover.

The above two types of expenses need to be classified in detail according to the operating scale of the store and the people, money, and materials invested, and then further estimated based on the profit and loss balance point.The following is a simpler calculation method.

1 break-even point

The break-even point equals operating expenses divided by gross profit margin.For example: Assuming that the gross profit rate of the product is 25%, and the monthly operating expenses are about 327 million yuan, the profit and loss balance point of the whole store is 1308 million yuan.If there is no loss, the average daily turnover should be 436 million yuan.

2 Gross profit margin

Gross profit margin is equal to gross profit divided by turnover, for example: 45 yuan ÷ 180 million yuan: 25%.

3 Operating expenses
Operating expenses are equal to gross profit before tax deduction, for example: RMB 45 - RMB 123 = RMB 327.

4 Break-Even Turnover

The break-even turnover is equal to the total operating expenses divided by the gross profit margin, for example: RMB 327 million ÷ 25% = RMB 1308 million.

5 balance point rate
The balance point rate is equal to the balance point of the turnover divided by the total turnover, for example: 1308 million yuan ÷ 180 million yuan ≈ 727%.

6 ROI

投资报酬率等于投资总金额除以税前净利润再乘以12，例如：1685万元÷123万元12≈1644%。

7 Net profit margin before tax
Tax rate Net profit rate is equal to the net profit before tax divided by the total turnover, for example: 123 million yuan ÷ 180 million yuan ≈ 68%.

8 Profit and loss analysis
Breakeven point:
Balance point of turnover (total cost/gross profit margin): 1308 million yuan/month.

Balance point rate (balance point of turnover/total turnover): 727%.

Investment efficiency:

(1) Total investment amount: 1685 million yuan
(2) Return on investment: (total investment amount/net profit before tax)×12=875%
(3) Net interest rate before tax: 68%
9 Operating safety rate

The operating safety rate is equal to 100% minus the balance point rate.For example: 100%—727%=273%.

The profit and loss balance point is the safe point in operation, and the general measurement standard is:
Youdian, the break-even point rate is below 75%, and the operating safety rate is above 25%;

For a good store, the break-even point rate is 75%~80%, and the operating safety rate is above 20%;

For ordinary stores, the break-even point rate is 80%~85%, and the operating safety rate is above 15%;

Unsatisfactory store, the breakeven point rate is 85%~90%, and the operating safety rate is above 10%;

For dangerous stores, the breakeven point rate is 90% to 91%, and the operating safety rate is above 9%.

The store owner can measure the safety of store operations according to the above standards. From this standard, if a store wants to maintain extremely high safety, the break-even point rate is 75%, and the operating safety rate is 25%.

The application of profit and loss analysis can not only be used by operators to ensure that they will not lose money after opening a store, or to set the amount of turnover that must be achieved in order to maintain a certain target profit, but also to grasp the operating status of the store. Through the analysis and comparison of various reasons, solutions are provided to improve the store's operating performance.

How to reduce the investment in the initial stage of opening
If you want to make money by opening a store, you must plan carefully.

1. Streamlining staff
There are fewer customers than shop assistants, and more on-stage than off-stage, which is the luxury and failure of store management.In the early days of some small shops, the boss often takes on several roles. From greeting customers, to buying and selling goods, from product display to cleaning, etc., he does everything by himself.For small shops in some industries, even at the beginning of opening, the boss alone cannot take care of them anyway, such as restaurants and hairdressing shops.Then, how the boss hires people and how to make full use of everyone is very important.Even if the scale of your small shop expands and the number of staff increases in the future, you should try your best to make the best use of each employee's strengths and functions. This is an effective way to reduce costs.

2 Savings in operating related expenses

In order to cooperate with the rationalization of small store operations and the rational use of funds, small store founders should pay close attention to the savings of various operating expenses.The founders of small shops must have an "entrepreneurial outlook", grit their teeth, overcome difficulties, be diligent and thrifty, and use every penny wisely.

3. Increase in turnover per unit area
Grasp the needs of customers, and give full play to the composition of business premises, the combination of commodity series and the display effect of goods in stores, and strive to increase the unit price of customers' purchases and increase the number of transactions, so as to improve the business efficiency per unit area of ​​the business premises. Lower unit cost.

4. Guarantee of total profit
For the adjustment of the overall product plan, all work related to product collection, manufacturer selection, product promotion focus and even sales methods should be coordinated with each other, and the main cooperative manufacturers should be kept in touch at any time to obtain various procurement information.

[-]. Selection of financing channels
What are the forms of bank loans

A bank is a special enterprise specializing in currency credit. It gathers a huge amount of funds from a large number of depositors at a certain cost, and then lends these funds to make profits.Except for a part of the bank's investment, most of it is used to issue loans.Banks are like a "reservoir" of funds, ready to provide loans of various terms and quantities that meet their requirements.The forms of loans can be divided into:

1 Mortgage
That is to say, the borrower provides a certain property to the bank as a credit mortgage.

2 credit loans
That is, the loan issued by the bank based only on the trust of the borrower's credit.Borrowers do not need to provide collateral to the bank.

3 Guaranteed loans
That is, a loan issued with the guarantee of the credit of the guarantor.

4 Discount Loans
That is to say, when the borrower is in urgent need of funds, he applies to the bank for a discount with undue bills in order to obtain a loan.

How to build a good relationship with the bank

Establishing a good relationship with the bank is not a one-day effort, but must be cultivated at ordinary times.Store owners should focus on the following aspects:

1. Pay attention to reputation
Banks are most concerned about the economic benefits of loan shop owners, because the economic benefits are directly related to the safety of bank credit funds.Therefore, when an enterprise interacts with a bank, it must first make the bank absolutely assured of the safety of the loan. With this foundation, other matters can be handled easily. Then, how can the bank be assured of the enterprise?

2 Pay attention to cultivating a good image
(End of this chapter)